Slide 1: Third-Quarter 2011 Analyst Conference Call
Speakers: Donald E. Morel, Jr. Chairman and Chief Executive Officer William J. Federici 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. Third-Quarter
Slide 2: Cautionary Statement Under the Private Securities Litigation Reform Act of 1995
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
Slide 3: Third Quarter 2011 Operations
Third Quarter 2011 Operations • Sales Growth of 8.2% (3.5 % at constant currency) – Pharmaceutical Packaging Systems 9.2% (3.4% at constant currency) • High value products grew 5.8% (1.4% at constant currency) – Pharmaceutical Delivery Systems 4.2% (2.4% at constant currency) • Gross Margin Improves
Slide 4: Expansion and Product Development Update
Expansion and Product Development Update • Update on Asia Expansion – China rubber facility on schedule for 2013 completion – India land purchase pending • Progress on Daikyo Crystal Zenith ® Insert Needle Syringe – Filling capacity constraints persist – Partnership solution pending • Electronic-Pat
Slide 5: Summary Results
Three Months Ended September 30, 2011 2010 Net Sales $293.6 $271.4 Gross Profit 81.4 74.7 Reported Operating Profit 26.1 25.3 Adjusted Operating Profit (1) 27.4 23.7 Reported Diluted EPS $ 0.49 $ 0.51 Adjusted Diluted EPS (1) $ 0.53 $ 0.46 Summary Results $ millions, except per-share data (1) See “N
Slide 6: Consolidated Revenues
—_—— TTT Wes t =) Delivering Innovative Solutions Consolidated Revenues Third-Quarter Revenue Changes 2010 - 2011 $12.7 $293.6 2010 Sales Volume & Price Currency 2011 Sales Mix
Slide 7: Consolidated Third Quarter Gross Margin %
__—_ West =) Delivering Innovative Solutions Consolidated Third Quarter Gross Margin % 2010 - 2011 0.7% (1.9%) (0.2%). 27.7% gH 07 Sang You, Cth Mage, + 27, Ss 2y, ‘Ne @ al Cog 91 py Ce My He ts @ “eq Sey, Qe,
Slide 8: Consolidated SG&A Costs
=== West =) Delivering Innovative Solutions ConsolidatedSG&A Costs Third Quarter 2010 - 2011 Changes ($ millions) $1.4 g0.2 $0.3 $04 lm ia — $1.2 $44.9 $1.1 p, h 2019 **Sion Utsigg - eating vr Other Com, “ok Wees mens Pensa ti
Slide 9: Cash Flow Metrics
Quarter Ended September 30, 2011 2010 Depreciation and amortization $18.6 $18.3 Operating cash flow $39.7 $48.0 Capital expenditures $28.6 $16.1 Cash Flow Metrics ($ millions)
Slide 10: Summary Balance Sheet Information
As of September 30, 2011 December 31, 2010 Cash and cash equivalents $119.2 $110.2 Debt $378.0 $358.4 Equity $691.3 $625.7 Net debt to total invested capital 27.2% 28.4% Working capital $274.2 $266.9 Summary Balance Sheet Information
Slide 11: Updated 2011 Full-year Financial Guidance
($ millions, except EPS) 2011 Revenue (1) Gross Profit % (1) Pharmaceutical Packaging Systems Segment $850 - $860 32.0% Pharmaceutical Delivery Systems Segment $330 - $340 18.8% Consolidated $1,180 - $1,200 28.3% 2011 Adjusted Diluted EPS (1)(2) $2.28 - $2.35 Updated 2011 Full-year Financial Guidanc
Slide 12: Non-GAAP Financial Measures Reconciliation
As Reported September 30, 2011 Restructuring & related charges Acquisition- related contingencies Discrete tax items Non-GAAP September 30, 2011 Operating profit $26.1 $1.0 $0.3 $- $27.4 Interest expense, net 4.1 - - - 4.1 Income before income taxes 22.0 1.0 0.3 - 23.3 Income tax expense 6.6 0.4 0.1
Slide 13: Notes to Non-GAAP Financial Measures
NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. These slides use non-GAAP financial measures. West believes that these non-GAAP measures of financial results provide useful information to management and investors regarding cert
Slide 14: Full Year 2011 Guidance Reconciliation
Full Year 2011 Guidance (3) Diluted Earnings Per Share Adjusted guidance $2.28 to $2.35 Restructuring, net of tax (0.10) to (0.11) Special separation benefits (0.04) Discrete tax items (0.02) Acquisition-related contingencies 0.01 Reported guidance $2.12 to $2.20 NOTES TO NON-GAAP FINANCIAL MEASURES