West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Investor Presentation (May 2016)
15 slides from West Pharmaceutical Services's investor presentation, May 11, 2016
Slide 1: West Pharmaceutical Services, Inc. May 2016
West Pharmaceutical Services, Inc. May 2016
Slide 2: Cautionary Statement and Safe Harbor
Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This slide presentation and any accompanying management commentary contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are no
Slide 3: By your side… Our mission
By your side… Pharmaceutical, biotechnology, generic and medical device companies trust West and our ability to deliver consistent high quality and technologically advanced containment and delivery solutions. We share their commitment to improving health for patients worldwide. Our mission 3 Become
Slide 4: West business at a glance
2015 Sales $1.4 billion 2015 Sales $1.4 billion 2015 Net Sales by Geography West business – at a glance 7% 39% 33% 21% Americas Europe, Middle East, Africa Asia Pacific 2015 Net Sales by Category 53% 40% 7% High-Value Components Standard Packaging Delivery Devices Contract Manufacturing P RO P RI E
Slide 5: Sustained, consistent growth
% % % % % % % % % 2011 2012 2013 2014 2015 Net Sales Sustained, consistent growth 5 2011 2012 2013 2014 2015 Adjusted Diluted EPS* (reported, $ millions) CAGR 4.8% $1,192.3 $1,399.8 CAGR 11.8% $1.17 $1.83 (Non-GAAP) Constant Currency CAGR 6.7% Comparison of Cumulative Five-Year Total Return 0 50 100
Slide 6: Addressing unique needs
Addressing unique needs 6 Quality – A High Bar Set By Our Customers GENERICS Speed to market Efficient manufacturing BIOLOGICS Packaging solutions for sensitive molecules Self-injection technologies PHARMA Total cost of ownership Life cycle management Quality manufacturing Design for manufacturing C
Slide 7: Proprietary Products, 80% of total sales
7 Proprietary Products, 80% of total sales BIOLOGICS Double-digit organic sales growth GENERICS Double-digit organic sales growth PHARMA Mid-single digit organic sales growth Low-single digit organic sales growth CONTRACT- MANUFACTURED PRODUCTS Q1 2016 Highlights 20% of total High-Value Product Offe
Slide 8: West solutions: Integrated containment & delivery
West solutions: Integrated containment & delivery 8 Increasing levels of customer intimacy Increasing value to West STERILIZED WASHED COATED ADMINISTERED CAMERA INSPECTED QUALITY BY DESIGN CONTAINMENT SELF INJECTION CONTRACT MANUFACTURING INJECTION MOLDING CONTRACT MANUFACTURING MULTI-COMPONENT ASSE
Slide 9: Product net sales & margin growth 2011-2015
Circles reflect relative size of 2015 net sales Standard Packaging High-Value Components 0% 5% 10% 15% 20% 0% 30% 60% 2015 Category Gross Margin % Proprietary Devices Contract Manufacturing 2015 GM 32.6% 5-Yr Sales CAGR 6.7% Product net sales & margin growth 2011-2015 compound annual net sales growt
Slide 10: First quarter 2016 summary results
First quarter 2016 summary results ($ millions, except earnings per-share (EPS) data) 10 (1) “Please refer to “Reconciliation of Non-GAAP Measures” at the end of these materials for more information. Three Months Ended March 31, 2016 2015 Reported Net Sales $362.1 $335.9 Net Sales at Constant Curren
Slide 11: Updated 2016 Full-year guidance
Updated 2016 Full-year guidance ($ millions, except EPS - Non-GAAP) (1) (2) 11 Estimated 2016 Revenue Estimated Gross Profit % Proprietary Products $1,180 - $1,190 37.7% to 38.2% Contract-Manufactured Products $310 - $320 17.4% to 18.4% Consolidated $1,490 - $1,510 33.5% to 34.0 % Est. Capital Spend
Slide 12: Building for the Future
Building for the Future Market-led strategy addressing the specific needs of pharmaceutical, biotechnology, generic and medical device customers Strong competitive position with high barriers to entry Quality culture Designed into regulated products Scientific and technical expertise Global Op
Slide 13: Appendix: Reconciliation of non-GAAP measures
Appendix: Reconciliation of non-GAAP measures 13 2015 2014 2013 2012 2011 Diluted EPS Reported (GAAP) $1.30 $1.75 $1.57 $1.15 $1.08 Pension settlement charge 0.43 - - - - Executive retirement and related costs 0.09 - - - - License costs - 0.01 - - - Discrete tax items 0.01 0.02 0.06 0.03 0.02 Restru
Slide 14: Reconciliation of Net Sales to Net Sales at Constant Currency
Reconciliation of Net Sales to Net Sales at Constant Currency(1) (1) Net sales at constant currency translates the current-period reported sales of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in effect during the comparable prior-year
Slide 15: Reconciliation of adjusted diluted EPS guidance
(1) Please refer to “Notes to Non-GAAP Financial Measures” in West’s April 28, 2016 press release. (2) Guidance includes various currency exchange rate assumptions, most significantly the Euro at $1.12 for the remainder of 2016. Actual results will vary as a result of exchange rate variability. Reco
West Pharmaceutical Services — Investor Presentation (May 2016) on 6ix