West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — FY2018 Earnings Presentation
17 slides from West Pharmaceutical Services's earnings presentation, Feb 14, 2019
Slide 1: Fourth-Quarter and Full-Year 2018 Analyst Conference Call
West Pharmaceutical Services, Inc. Fourth-Quarter and Full-Year 2018 Analyst Conference Call 9 a.m. Eastern Time, February 14, 2019 ▪ 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:
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 Fourth-quarter and Full-year Results and 2019 Guidance
2018 Fourth-quarter and Full-year Results and 2019 Guidance ▪ Q4 2018 reported net sales of $422.5 million, representing 3.6% constant-currency, organic sales growth. Excluding the impact of the voluntary recall, constant-currency, organic sales growth would have been 6.3% ▪ Q4 2018 reported-diluted
Slide 4: Organic Sales Growth
Abbreviations: LSD – low-single digit; MSD – mid-single digit; Organic Sales Growth HSD – high-single digit; DD – double digit Full-year Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Overall Organic 4.5% 0.2% 9.0% 9.6% 3.6% 5.6% Sales Growth Biologics DD (LSD) LSD (MSD) MSD Flat Generics HSD HSD DD M
Slide 5: "One West" Global Operations Management System Driving Improved Operational Performance
“One West” Global Operations Management System Driving Improved Operational Performance One Global Approach Record-Setting Across All Sites Manufacturing Results in 2018 Strategy Procurement Supply Chain Safety Quality Process Excellence Advanced Manufacturing Engineering Service Cost 5
Slide 6: Asia Pacific and South America Focus: Provide Opportunity for Future Growth
Asia Pacific and South America Focus: Provide Opportunity for Future Growth Manufacturing Presence Developing Market Trends & West Performance ▪ Annual underlying market growth is high single- digits ▪ West sales growing at a double-digit sales CAGR over the last 5 years ▪ High demand from all custo
Slide 7: R&D Supports Future High-Value Product Growth Strategy
R&D Supports Future High-Value Product Growth Strategy Elastomer Innovation High-Value Processing Delivery Devices New, high-quality formulations Process and technology That integrate West’s and programs to address innovation advances to produce containment and delivery customer needs higher value p
Slide 8: Fourth-Quarter 2018 Summary Results
Fourth-Quarter 2018 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended December 31, 2018 2017 Reported Net Sales $422.5 $415.6 Net Sales at Constant Currency (1) $430.4 $415.6 Gross Profit Margin 31.5% 30.9% Reported Operating Profit $65.8 $60.4 Adjusted Operating
Slide 9: Change in Consolidated Net Sales Fourth-quarter 2017 to 2018
Change in Consolidated Net Sales Fourth-quarter 2017 to 2018 ($ millions) $18.4 $2.5 ($6.1) ($7.9) $415.6 $422.5 2017 Volume & Mix Sales Price Consumer Currency 2018 9
Slide 10: Gross Profit Update
Gross Profit Update ($ millions) Three Months Ended December 31, 2018 2017 Proprietary Products: Gross Profit $115.0 $106.6 Gross Profit Margin 37.0% 34.8% Contract-Manufactured Products: Gross Profit $18.2 $22.0 Gross Profit Margin 16.4% 20.1% Consolidated Gross Profit $133.2 $128.6 Consolidated Gr
Slide 11: Cash Flow and Balance Sheet Metrics
Cash Flow and Balance Sheet Metrics ($ millions) CASH FLOW ITEMS (UNAUDITED) (in millions) Twelve Months Ended December 31, 2018 2017 Depreciation and amortization $104.4 $96.7 Operating cash flow $288.6 $263.3 Capital expenditures $104.7 $130.8 FINANCIAL CONDITION (UNAUDITED) (in millions) As of As
Slide 12: Full-Year 2019 Guidance
Full-Year 2019 Guidance ▪ Full-year 2019 reported net sales guidance expected to be in a range between $1.795 billion to $1.820 billion ▪ Full-year 2019 adjusted-diluted EPS is expected to be in a range between $2.77 to $2.89(1,2) ▪ Full-year 2019 capital spending is expected to be in a range betwee
Slide 13: 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 14: 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” (Slides 13-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and Adjusted Ope
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” (Slides 13-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and Adjusted Ope
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” (Slides 13-17), “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 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” (Slides 13-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported-Diluted EPS Guid
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