West Pharmaceutical Services, Inc. · NYSE:WST

West Pharmaceutical Services — Q1 2016 Earnings Presentation

16 slides from West Pharmaceutical Services's earnings presentation, Apr 28, 2016

  1. Slide 1: First Quarter 2016 Analyst Conference Call

    West Pharmaceutical Services, Inc. First Quarter 2016 Analyst Conference Call 9 a.m. Eastern Time, April 28, 2016 Speakers: Eric M. Green President and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer All trademarks and registered trademarks are the prope

  2. Slide 2: Cautionary Statement

    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 limi

  3. Slide 3: Q1 2016 Highlights

     Net sales of $362 million, organic sales growth* of 10.5%  Proprietary Products organic sales growth of 13.0%  Contract-Manufactured Products organic sales growth of 1.4%  Gross margin of 34.0%, an increase of 130 basis points from last year  Adjusted diluted EPS of $0.53  Includes a negative

  4. Slide 4: Q1 2016 Highlights: Proprietary and Contract-Manufactured Products

    4 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

  5. Slide 5: Global Operations

    Global Operations  Gross margin +130 basis points  Increased capacity utilization and efficiency levels, especially for High- Value Products  Lean manufacturing Waterford construction is on-track and on-budget Proprietary Products backlog at March 31, 2016 was $437 million +24% over 3/31/15 +5%

  6. Slide 6: Innovation & Technology

    Innovation & Technology 6  Daikyo Crystal Zenith ® extreme cold storage applications West Lyoseal® scaling-up for future customer trials  Commissioning SmartDose manufacturing cell in Scottsdale  Developing advanced novel wearable injectors  Equity investment in NanoPass

  7. Slide 7: 2016 Outlook

    2016 Outlook Raising the lower-end of both full-year 2016 net sales and adjusted diluted EPS guidance  2016 net sales: $1.49 billion to $1.51 billion  2016 adj. diluted EPS: $2.12 to $2.25 Represents 16% to 23% growth over 2015 7

  8. Slide 8: First quarter 2016 summary results

    First quarter 2016 summary results ($ millions, except earnings per-share (EPS) data) 8 (1) “Net sales at constant currency”, “adjusted operating profit”, and “adjusted diluted EPS” are Non-GAAP measures. See slides 14-16 and the discussion under the heading “Non-GAAP Financial Measures” in today’s

  9. Slide 9: Change in consolidated sales

    Change in consolidated sales First quarter 2015 to 2016 ($ millions) 9 $362.1 ($9.1) $33.7 $1.6 $335.9 2015 Volume & Mix Sales Price Currency 2016

  10. Slide 10: Change in gross profit margin %

    10 Change in gross profit margin % First quarter 2015 to 2016 34.0% (1.0%) 1.1% 0.9% 0.3% 32.7% 2015 Volume & Mix Raw Material Sales Price Currency & Other 2016

  11. Slide 11: Change in SG&A costs

    11 Change in SG&A costs First quarter 2015 to 2016 ($ millions) $58.1 $0.3 $0.6 $1.0 $2.6 $1.4 $0.8 $55.2 2015 Comp and Other Outside Services US Pension All Other Incentive & Stock Comp Currency 2016

  12. Slide 12: Cash flow and balance sheet metrics

    Cash flow and balance sheet metrics ($ millions) 12 CASH FLOW ITEMS (UNAUDITED) (in millions) BALANCE SHEET ITEMS (UNAUDITED) (in millions) (1) Net debt and total invested capital are Non-GAAP measures. Net debt is determined by reducing total debt by the amount of cash and cash equivalents, and for

  13. Slide 13: Updated 2016 Full-year guidance

    Updated 2016 Full-year guidance ($ millions, except EPS - Non-GAAP) (1) (2) 13 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

  14. Slide 14: Notes to Non-GAAP Financial Measures

    Notes to Non-GAAP Financial Measures For additional details, please see today’s press release & 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 accept

  15. Slide 15: Notes to Non-GAAP Financial Measures: Reconciliation

    Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales to Net Sales at Con

  16. Slide 16: Reconciliation of adjusted diluted EPS guidance

    (1) Please refer to “Notes to Non-GAAP Financial Measures” on slides 14 and 15, and “Non-GAAP Financial Measures” in today’s press release, for additional information regarding adjusted diluted EPS. (2) Guidance includes various currency exchange rate assumptions, most significantly the Euro at $1.1

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