West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q2 2021 Earnings Presentation
20 slides from West Pharmaceutical Services's earnings presentation, Jul 29, 2021
Slide 1: Second-Quarter 2021 Cautionary Statement
1 Second-Quarter 2021 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 2: Second-Quarter Results 2021 Analyst Conference Call
West Pharmaceutical Services, Inc. Eric M. Green President & CEO Second-Quarter Results 2021 Analyst Conference Call 9 a.m. Eastern Time | July 29, 2021 Bernard J. Birkett Senior Vice President & CFO
Slide 3: West Analyst Conference Call
3 West Analyst Conference Call 9 a.m. Eastern Time July 29, 2021 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, please dial: 877-930-8295 (U.S.) 253-336-8738 (International) The conference ID is 3089097 An
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 and operat
Slide 5: Q2 Highlights
5 • Second quarter 2021 net sales of $723.6 million grew 37.3%; organic sales growth was 30.6% • Second quarter 2021 reported-diluted EPS of $2.47 increased 104%; adjusted- diluted EPS of $2.46 increased 97% • Raising sales and adjusted-diluted EPS guidance for full-year 2021 Q2 Highlights O U R P L
Slide 6: Q2 Drivers of Growth in our High-Value Product (HVP) portfolio
6 Q2 Drivers of Growth in our High- Value Product (HVP) portfolio WST Q2 2021 Earnings
Slide 7: Accelerating multi-phased investments to meet HVP demand
7 Accelerating multi-phased investments to meet HVP demand WST Q2 2021 Earnings Completed investment across the network to increase HVP capacity Investment for additional equipment and validated lines — expected to be complete by end of 2021 Investment approved with anticipated future vaccine demand
Slide 8: Second-Quarter 2021 Summary Results
8 Second-Quarter 2021 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended June 30 2021 2020 Reported Net Sales $723.6 $527.2 Gross Profit Margin 43.5% 37.0% Reported Operating Profit $211.3 $103.6 Adjusted Operating Profit (1) $211.2 $106.0 Reported Operating Profit
Slide 9: Overall Organic Sales Growth – 30.6% (Q2 2021)
9 Overall Organic Sales Growth – 30.6% (Q2 2021) Proprietary Products Q2 2021 organic sales growth of 39.3% led by sales of high-value products, which grew double digits BIOLOGICS GENERICS PHARMA Sales led by high-value products, including Flurotec®, Daikyo®, NovaPure® and Westar® components Sales l
Slide 10: Change in Consolidated Net Sales
10 Change in Consolidated Net Sales Second-quarter 2020 to 2021 ($ millions) WST Q2 2021 Earnings
Slide 11: Gross Profit Update
11 Gross Profit Update ($ millions) Three Months Ended June 30, 2021 2020 Proprietary Products Gross Profit $292.3 $170.8 Proprietary Products Gross Profit Margin 49.8% 42.8% Contract-Manufactured Products Gross Profit $22.8 $24.3 Contract-Manufactured Products Gross Profit Margin 16.7% 19.0% Consol
Slide 12: Cash Flow and Balance Sheet Metrics
12 Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items YTD Q2 2021 YTD Q2 2020 Depreciation and Amortization $57.9 $52.2 Operating Cash Flow $233.1 $205.2 Capital Expenditures $111.6 $69.2 Financial Condition June 30, 2021 December 31, 2020 Cash and Cash Equivalents $576.2 $615.5 Debt $
Slide 13: 2021 Full-Year Guidance
13 2021 Full-Year Guidance 2021 Full-Year Guidance Consolidated Net Sales $2.760 - $2.785 billion Adjusted-Diluted EPS $8.05 - $8.20 WST Q2 2021 Earnings
Slide 14: We are proud to be the trusted partner for our customers across the globe
14 We are proud to be the trusted partner for our customers across the globe and ensure the safe delivery of vaccines and treatments for patients. Strong Base Business WST Q2 2021 Earnings Global Operational Effectiveness Accelerating Investments for the Future
Slide 15: Q & A
15 Eric M. Green President and Chief Executive Officer Bernard J. Birkett Senior Vice President and Chief Financial Officer Quintin Lai VP, Corporate Development, Strategy & Investor Relations Q & A WST Q2 2021 Earnings
Slide 16: Notes to Non-U.S. GAAP Financial Measures
16 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 17: Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS
17 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 18: Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS (2020)
18 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 19: Reconciliation of Net Sales to Organic Net Sales
19 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 20: Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS Guidance
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-Di
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