West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q4 2022 Earnings Presentation
23 slides from West Pharmaceutical Services's earnings presentation, Feb 16, 2023
Slide 1: Fourth-Quarter 2022 and Full Year Results
1 Fourth-Quarter 2022 and Full Year Results Fourth Quarter Overall Net Sales $708.7M | 3.0% Diluted Earnings Per Share: $1.36 Adjusted Diluted Earnings Per Share: $1.77 Eric M. Green President and Chief Executive Officer Chair of the Board West Pharmaceutical Services, Inc. WST Q4/FY 2022 Earnings C
Slide 2: Fourth-Quarter and Full Year Results 2022 Analyst Conference Call
West Pharmaceutical Services, Inc. Eric M. Green President & CEO, Chair of the Board Bernard J. Birkett Senior VP & Chief Financial and Operations Officer Fourth-Quarter and Full Year Results 2022 Analyst Conference Call 9 a.m. Eastern Time | February 16, 2023
Slide 3: West Analyst Conference Call
3 West Analyst Conference Call 9 a.m. Eastern Time February 16, 2023 A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com To participate on the call by asking questions to Management, please register in advance at: https://register.vevent.
Slide 4: Safe Harbor Statement
4 Safe Harbor Statement 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 limited to, statements about product development, operation
Slide 5: "Keep everlastingly at it." Herman O. West
5 “Keep everlastingly at it.” Herman O. West West Founder April 14, 1923 Over the course of our 100-year history the West name has come to mean so much to so many people. The future innovations we’ll advance across the next 100 years will allow us to have a greater and more positive impact on the wo
Slide 6: Financial Highlights
6 Financial Highlights WST Q4/FY 2022 Earnings • Fourth quarter 2022 net sales of $708.7 million declined 3.0%; organic net sales growth was 2.6% • Fourth quarter 2022 reported-diluted EPS of $1.36 compared to $1.93 in the same period last year; adjusted-diluted EPS of $1.77 compared to $2.04 in the
Slide 7: 2022 Business Highlights
7 Donated over $2.75M to our local communities to help those in greatest need Published over 100 scientific peer-reviewed and industry publications 600+ new team members joined West Shipped close to 47 billion components touching billions of patients Established landmark collaboration with Corning i
Slide 8: Purpose. Driven. ESG Priorities for 2022 and beyond
8 Purpose. Driven. ESG Priorities for 2022 and beyond WST Q4/FY 2022 Earnings Climate Strategy R&D for the Environment Waste in Operational Processes Responsible Supply Chain Talent Diversity Talent Engagement and Retention NASDAQ recognition of West’s Corporate Responsibility Report featured in Tim
Slide 9: Execute. Innovate. Grow.
9 F l u ro Te c ® 5 - 1 0 m L c a r t r i d g e p l u n g e r Execute. Innovate. Grow. Innovations for today’s complex and sensitive molecules WST Q4/FY 2022 Earnings We s t R e a d y Pa c k ™ w i t h C o r n i n g Va l o r ® R T U V i a l s D a i k y o C Z ® 2 . 2 5 m L i n s e r t n e e d l e s y
Slide 10: 2023 Full-Year Guidance
10 2023 Full-Year Guidance WST Q4/FY 2022 Earnings 2023 Full-Year Guidance Consolidated Net Sales $2.935 - $2.960 billion Adjusted-Diluted EPS $7.25 to $7.40 2023 New Share Repurchase Program • Authorized for up to $1 billion of share repurchase • No specified end date to this new repurchase program
Slide 11: Capacity Investments making progress across the Globe
11 Capacity Investments making progress across the Globe AMERICAS EXPANSION PROGRESS EUROPE EXPANSION PROGRESS ASIA PACIFIC EXPANSION PROGRESS Kinston Williamsport & Jersey Shore Waterford Kovin Eschweiler Jurong, Singapore 11WST Q4/FY 2022 Earnings
Slide 12: Fourth-Quarter 2022 Summary Results
12 Fourth-Quarter 2022 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended December 31 2022 2021 Reported Net Sales $708.7 $730.8 Gross Profit Margin 37.0% 41.1% Reported Operating Profit $129.7 $184.0 Adjusted Operating Profit (1) $158.7 $189.2 Reported Operating P
Slide 13: Fourth-Quarter 2022 Organic Net Sales Growth
13 Overall Organic Net Sales Growth – 2.6% (Q4 2022) Proprietary Products Q4 2022 organic net sales growth of 1.8% with sales of high-value products flat year over year BIOLOGICS GENERICS PHARMA Sales decline due to reduction in sales related to COVID-19 vaccines Sales led by high-value products, in
Slide 14: Change in Consolidated Net Sales
14 Change in Consolidated Net Sales Fourth-quarter 2021 to 2022 ($ millions) WST Q4/FY 2022 Earnings
Slide 15: Gross Profit Update
15 Gross Profit Update ($ millions) Three Months Ended December 31, 2022 2021 Proprietary Products Gross Profit $243.0 $282.4 Proprietary Products Gross Profit Margin 41.6% 46.3% Contract-Manufactured Products Gross Profit $19.1 $20.1 Contract-Manufactured Products Gross Profit Margin 15.4% 16.5% Co
Slide 16: Cash Flow and Balance Sheet Metrics
16 Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items YTD Q4 2022 YTD Q4 2021 Depreciation and Amortization $120.6 $122.3 Operating Cash Flow $724.0 $584.0 Capital Expenditures $284.6 $253.4 Free Cash Flow $439.4 $330.6 Financial Condition December 31, 2022 December 31, 2021 Cash and C
Slide 17: Delivering Unique Value to Customers and Patients
17 Execute. Innovate. Grow. Delivering Unique Value to Customers and Patients Global Operational Effectiveness Across the Network Accelerating Investments for the Future Committed to patient health today and into the future WST Q4/FY 2022 Earnings
Slide 18: Q & A
18 Eric M. Green President and Chief Executive Officer, Chair of the Board Bernard J. Birkett Senior VP and Chief Financial and Operations Officer Quintin Lai VP, Corporate Strategy & Investor Relations Q & A
Slide 19: Notes to Non-U.S. GAAP Financial Measures
19 Notes to Non-U.S. GAAP Financial Measures The Non-U.S. GAAP financial measures are incorporated into our discussion and analysis as management uses them in evaluating our results of operations and believes that this information provides users a valuable insight into our overall performance and fi
Slide 20: Notes to Non-U.S. GAAP Financial Measures
20 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported an
Slide 21: Notes to Non-U.S. GAAP Financial Measures
21 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported an
Slide 22: Notes to Non-U.S. GAAP Financial Measures
22 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales t
Slide 23: Notes to Non-U.S. GAAP Financial Measures
23 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported-Di
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