Slide 1: First-Quarter 2014 Analyst Conference Call
1 Speakers: Donald E. Morel, Jr. Chairman and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer All trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., unless noted otherwise. West Pharmaceutical Services, Inc. Firs
Slide 2: Cautionary Statement
2 Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This 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 not li
Slide 3: First-Quarter Summary Results
3 First-Quarter Summary Results $ millions, except earnings per-share (EPS) data (1) These are Non-GAAP measurements. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 14-15), “Cautionary Statement” (Slide 2) and see “Non-GAAP Financial Measures” in today’s press r
Slide 4: First-Quarter Operating Results
4 First-Quarter Operating Results • Overall sales • Pharmaceutical Packaging Systems sales virtually unchanged • High-value product sales declined 6.9% • Offset by standard product gains • Backlog 11% higher than December 31, 2013, mostly for high-value items • Q1 Demand was impacted by: • Shorter l
Slide 5: Expansion and Product Development
5 Expansion and Product Development Geographic expansion: • China: Plant is operating • India construction progress Metal operation is ready for production Elastomer expansion on hold Proprietary delivery systems • Customer-funded programs proceeding as expected SmartDose® unit volume in
Slide 6: 2014 Outlook
6 2014 Outlook Confirming prior guidance • Narrowed diluted EPS estimate to range of $1.77 to $1.89 Other elements of guidance unchanged PPS: • High-value product sales growth expected to resume Lead-times stabilizing Backlog growing • Price not expected to be a significant contributor P
Slide 7: Change in Consolidated Sales First-Quarter 2013 to 2014
7 Change in Consolidated Sales First-Quarter 2013 to 2014 ($ millions) $346.8 $2.0 $2.1 $3.3 $339.4 2013 Sales Volume & Mix Sales Price Currency 2014 Sales
Slide 8: Change in Consolidated Gross Profit Margin %
8 Change in Consolidated Gross Profit Margin % First-Quarter 2013 to 2014 30.7% 2.3% 0.8% 0.1% 0.4% 0.6% 32.9% 2014 2013
Slide 9: Change in SG&A Costs First-Quarter 2013 to 2014
9 Change in SG&A Costs First-Quarter 2013 to 2014 ($ millions) $56.4 $1.9 $1.3 $1.3 $0.5 $2.3 $59.1
Slide 10: Cash Flow Metrics
10 Cash Flow Metrics ($ millions) (1) 2013 capital expenditures includes $35 million of 2013 funding associated with the Company’s new headquarters and research facility, most of which was incurred and recorded in earlier years Three Months Ended March 31, 2014 2013 Depreciation and amortization $21
Slide 11: Summary Balance Sheet Information
11 Summary Balance Sheet Information ($ millions) † Net debt to total invested capital is a Non-GAAP measure, which management believes provides a useful measure of the comparative degree of West’s financial leverage. Net debt is determined by reducing total debt by the amount of cash and cash equiv
Slide 12: 2014 Full-year Financial Guidance
12 2014 Full-year Financial Guidance ($ millions, except EPS) Estimated 2014 Revenue(1) Estimated Gross Profit %(1) Pharmaceutical Packaging Systems Segment $1,050 - $1,070 36.2% to 36.7% Pharmaceutical Delivery Systems Segment $400 - $410 20.3% to 21.3% Consolidated $1,450 - $1,480 31.9% - 32.4% Ca
Slide 13: Non-GAAP Financial Measures
13 Non-GAAP Financial Measures(1) Three Months Ended March 31, 2014 and 2013 (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slide 15), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Three-months e
Slide 14: Notes to Non-GAAP Financial Measures
14 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. Today’s press release, these presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally