West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — JP Morgan Healthcare Conference 2022
20 slides from West Pharmaceutical Services's conference presentation, Jan 10, 2022
Slide 1: West Pharmaceutical Services, Inc.
West Pharmaceutical Services, Inc. Eric M. Green President & CEO JP Morgan Conference | January 10, 2022
Slide 2: Safe Harbor Statement
Cautionary Statement Under the Private Non-U.S. GAAP Financial Measures Securities Litigation Reform Act of 1995 Certain financial measures included in these presentation materials, or which may be referred This presentation and any accompanying to in management’s discussion of the Company’s managem
Slide 3: We serve to improve patient lives
OUR PURPOSE We serve to improve patient lives. OUR MISSION OUR VISION — ENTERPRISE STRATEGIC PLAN — MAKING AN IMPACT EXECUTE | INNOVATE | GROW TO OUR We contain and deliver To be the world leader STAKEHOLDERS injectable therapies that in the integrated improve patient lives. containment and delivery
Slide 4: West is a Global Leader in Containment and Delivery of Injectable Medicines
West is a Global Leader in Containment and Delivery of Injectable Medicines In 2021, we produced nearly 45 billion components impacting the lives of billions of patients around the world. V I A L C O N TA I N M E N T A D M I N I S T R AT I O N & DRUG DELIVERY & SYRINGE RECONSTITUTION & DIAGNOSTIC CO
Slide 5: Our Journey
Our Journey STRUCTURED FOR SUCCESS TRANSFORMATION GROWTH & EXPANSION COVID & BEYOND COVID-19 PANDE MIC 2015 Full Review of 2016 2017 2018 2019 2020 2021 2022+ Enterprise Strategic Plan • Established Vision, • Launched first • Created Digital • Established Bangalore • Established Taiwan Digital Techn
Slide 6: 2021 was a year of many proud accomplishments
2021 was a year of many proud accomplishments… Expanded capacity Shipped close to Rose to the challenge of being a at 13 existing sites with 30 45 billion components critical supplier for major facility modifications majority of vaccines and over 400 pieces of touching billions of patients equipment
Slide 7: A Growing Business Well-Positioned for Success
A Growing Business Well-Positioned for Success Net Sales* by Net Sales* by Net Sales* by GEOGRAPHY PRODUCT CATEGORY MARKET GROUP Team Members 10,000+ 10% Globally 19% 19% 4% Locations 40% 45% 45% 54% 50 25 Manufacturing Sites 24% 23% Customers 17% >2,000 Across Healthcare Industry Americas High-Valu
Slide 8: Our Market-Led Journey is Generating Success and Positions Us Well for the Future
Our Market-Led Journey is Generating Success and Positions Us Well for the Future COMMERCIAL & PRODUCT MANAGEMENT Customer-facing market units in Proprietary Products segment and Contract Manufacturing that focus on providing products to healthcare companies from concept to patient R&D AND TECHNICAL
Slide 9: Delivering Customer Needs with High-Value Products & Services
Delivering Customer Needs with High-Value Products & Services SELF-INJECTION CONTAINMENT QUALITY BY DESIGN CAMERA INSPECTED COATED ADMINISTERED STERILIZED MULTI-COMPONENT ASSEMBLY WASHED ® ANALYTICAL SERVICES INJECTION MOLDING STANDARD 9
Slide 10: Sales Growth
Sales Growth Constant Currency CAGR 9.2% Reported CAGR 9.2% From 2016-2020: From January-September 2021: $2.15 • Consolidated constant currency growth Billion • Consolidated organic sales CAGR was 9.2% growth was 29.8% driven by both double-digit base business as well as COVID-19 related sales • Pro
Slide 11: Product Net Sales and Range of Gross Profit Margin
Product Net Sales and Range of Gross Profit Margin* HVP% of Total HVP% of Units Sold Consolidated Range of Gross Margins within Product Categories (Proprietary and Net Sales Contract Mfg.) 41.7% Consolidated Gross Margin* 15% High Value Product (HVP) 2016 2021* Components HVP Delivery Devices 2016 S
Slide 12: Sustained Growth and Value Creation
Sustained Growth and Value Creation 900% WST: NYSE 800% Adjusted Diluted EPS CAGR 21.6% 700% $4.76 600% 500% 400% 300% S&P 500 $2.18 200% S&P 500 Health Care 100% 2015 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 Comparison of Cumulative Adjusted-Diluted EPS Six-Year Total Return (Non-U.S.
Slide 13: Market-Led: Meeting the Changing Needs in the Market
Market-Led: Meeting the Changing Needs in the Market Taking a customer-centric approach to addressing customer segment needs. Biologics Generics Pharma Contract Manufacturing Packaging solutions for sensitive Manufacturing efficiency and Total cost of ownership Quality manufacturing and molecules an
Slide 14: Global Operational Effectiveness
Global Operational Effectiveness Every Component Has a Patient Name on It. Enable and Support Global Global Supply Chain Advanced Business Growth Manufacturing Maturity Manufacturing Operations Strategy Technology Leverage our global scale and Execute our West Continue to mature our Ensure product s
Slide 15: Customers Trust During the Pandemic
Customers Trust During the Pandemic We continue to accelerate multi-phased investments to meet HVP demand. Completed investment across the Investment for additional equipment Investment approved with anticipated network to increase HVP capacity and validated lines — expected to be future base busine
Slide 16: West is Driving Sustainable Business Practices
West is Driving Sustainable Business Practices Progress Improvement Reduction Six Pillars: in waste recycled and global waste in Energy from 2019 to 2020 in absolute water consumption from diversion at sites in 2019 to 2020 • Compliance & Ethics 2020 • Philanthropy 250+ >65% • Health & Safety United
Slide 17: Innovating for a Healthier World
Innovating for a Healthier World We enable our customers’ ability to support patient health and fuel a brighter future with product innovation. Strong Base Business Delivering Unique Value Propositions Global Operational Effectiveness Accelerating Investments for the Future 17
Slide 18: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP For the purpose of aiding the comparison of our The non-U.S. GAAP financial measures are year-over-year results, we may refer to net sales and incorporated into our discussion and analysis as other financial results excluding the effects of management uses them in evaluating o
Slide 19: Reconciliation of Non-U.S. GAAP Financial Measures (Unaudited)
Notes to Non-U.S. GAAP Financial Measures: Reconciliation of Non-U.S. GAAP Financial Measures (Unaudited). Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ millions, except EPS data) Operating Income tax Net Diluted Nine months ended September 30, 2021 profit e
Slide 20: Reconciliation of Non-U.S. GAAP Financial Measures (Unaudited)
Notes to Non-U.S. GAAP Financial Measures: Reconciliation of Non-U.S. GAAP Financial Measures (Unaudited). Reconciliation of Net Sales to Organic Net Sales ($ millions) Nine months ended September 30, 2021 Proprietary CM Eliminations Total Reported net sales (U.S. GAAP) $1,708.0 $393.2 $(0.4) $2,100
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