West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q2 2018 Earnings Presentation
18 slides from West Pharmaceutical Services's earnings presentation, Jul 26, 2018
Slide 1: Second-Quarter 2018 Analyst Conference Call
West Pharmaceutical Services, Inc. Second-Quarter 2018 Analyst Conference Call 9 a.m. Eastern Time, July 26, 2018 ▪ A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com Speakers: ▪ To participate on the call, please dial: Eric M. Green − 8
Slide 2: Safe Harbor Statement
Safe Harbor 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 inc
Slide 3: 2018 Second-Quarter Results & Full-Year Outlook
2018 Second-Quarter Results & Full-Year Outlook ▪ Q2 2018 reported net sales of $447.5 million, representing 9.0% organic sales growth ▪ Q2 2018 adjusted-diluted EPS(1) was $0.70, compared to $0.66 for the same period last year ▪ Q2 2018 tax benefits from stock option exercises resulted in $0.04 of
Slide 4: Organic Sales Growth
Abbreviations: LSD – low-single digit; MSD – mid-single digit; Organic Sales Growth HSD – high-single digit; DD – double digit Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Overall Organic 3.9% 3.7% 4.5% 0.2% 9.0% Sales Growth Biologics MSD MSD* DD (LSD) LSD Generics (MSD) LSD HSD HSD DD Pharma HSD* (MSD)
Slide 5: First-Half 2018 Product Innovation Highlights
First-Half 2018 Product Innovation Highlights ▪ TM AccelTRA Component Program recognized TM at Innopack 2018 with India Packaging Award ▪ SelfDose® Injector recognized at MD&M East Conference with Silver Medical Design Excellence Award ▪ Westar® Select launch announced in July – latest in high value
Slide 6: 2018 YTD Scientific & Technical Engagement
2018 YTD Scientific & Technical Engagement ~900 >150 ~25 Technical ~70 Customer Requests Customer Conference Patents Regulatory Filing Audits Presentations Issued Assistance 6 |
Slide 7: Global Operations Driving Efficiencies
Global Operations Driving Efficiencies ▪ “One West” Management System driving more efficient Waterford, Ireland Site operations ₋ Puerto Rico site scaling up to manufacture additional volume for hospital administration product portfolio ₋ Lead times continue to improve across manufacturing sites ₋ G
Slide 8: Second-Quarter 2018 Summary Results
Second-Quarter 2018 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended June 30, 2018 2017 Reported Net Sales $447.5 $397.6 Net Sales at Constant Currency (1) $433.5 $397.6 Gross Profit Margin 31.8% 31.4% Reported Operating Profit $60.3 $42.0 Adjusted Operating Prof
Slide 9: Change in Consolidated Net Sales
Change in Consolidated Net Sales Second-quarter 2017 to 2018 ($ millions) $6.8 $14.0 $29.1 $447.5 $397.6 2017 Volume & Mix Currency Sales Price 2018 9 |
Slide 10: Change in Gross Profit Margin %
Change in Gross Profit Margin % Second-quarter 2017 to 2018 0.6% 1.2% 1.7% (0.4%) (1.0%) Waterford (2.7%) 31.8% 31.4% 2017 Efficiency Sales Price Volume & Mix Raw Material Plant OH & 2018 Other Proprietary (77% of Net Sales) Gross Margin improved to 37.2%, an increase of 180 basis points. 10 |
Slide 11: Change in SG&A Costs
Change in SG&A Costs Second-quarter 2017 to 2018 ($ millions) $1.6 $1.3 $2.6 $3.2 $70.0 15.6% of Net Sales $61.3 15.4% of Net Sales 2017 Incentive Bonus Other Other Comp & Currency 2018 Benefits Translation 11 |
Slide 12: Cash Flow and Balance Sheet Metrics
Cash Flow and Balance Sheet Metrics ($ millions) CASH FLOW ITEMS (UNAUDITED) (in millions) Six Months Ended June 30, 2018 2017 Depreciation and amortization $51.9 $46.8 Operating cash flow $127.0 $106.0 Capital expenditures $48.2 $67.0 FINANCIAL CONDITION (UNAUDITED) (in millions) As of As of June 3
Slide 13: Full-Year 2018 Guidance
Full-Year 2018 Guidance ▪ Reaffirming full-year 2018 reported net sales guidance range of $1.720 billion to $1.730 billion* ▪ Reaffirming full-year 2018 adjusted-diluted EPS range of $2.80 to $2.90(1)(2) ▪ Capital expenditures are expected to be in a range between $120 million to $130 million, compa
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
Slide 15: Notes to Non-GAAP Financial Measures
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-18), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and Adjusted Oper
Slide 16: Notes to Non-GAAP Financial Measures
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-18), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and Adjusted Oper
Slide 17: Notes to Non-GAAP Financial Measures
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-18), “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
Slide 18: Notes to Non-GAAP Financial Measures
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-18), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported-Diluted EPS Guida
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