West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q4 2020 Earnings Presentation
23 slides from West Pharmaceutical Services's earnings presentation, Feb 18, 2021
Slide 1: 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 2: Fourth-Quarter and Full Year Results 2020 Analyst Conference Call
Eric M. Green President & CEO Fourth-Quarter and Full Year Results 2020 Analyst Conference Call 9 a.m. Eastern Time | February 18, 2021 Bernard J. Birkett Senior Vice President & CFO
Slide 3: Webcast and call participation details
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 4095168 An online archive of the broadcast will be available at the website
Slide 4: Forward-looking statements
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 operational performance. Each
Slide 5: Mission, Values, Priorities
MISSION VALUES PRIORITIES We contain and deliver injectable therapies that improve patients’ lives Passion for Customers Leadership in Quality One West Team Keeping Team Members Safe Ensuring Uninterrupted Supply of High-Quality Containment and Delivery Devices for Customers and Patients
Slide 6: Net Sales by Geography, Product Category, Segment & Unit
* December 2020 YTD Americas Europe, Middle East, Africa Asia Pacific 48%43% 9% High-Value Components Standard Packaging High-Value Delivery Devices Contract-Manufactured Products PR O PR IE TA R Y PR O D U CT S 23% 5% 26% 46% Net Sales* by GEOGRAPHY Net Sales* by PRODUCT CATEGORY Biologics Generics
Slide 7: High-Quality Components on Majority of Vaccines
West High-Quality Components on Majority of Vaccines Driven by years of pioneering science at West, the selection process for the best high-quality packaging components is complex. We are helping vaccine developers protect their sensitive biomolecules with trusted solutions. MEETING DEMAND Industry
Slide 8: Gold Standard Top Performer; SAP S/4HANA Ranked #4
Gold Standard Top 25 Performer S&P 500 SAP S/4HANA® Ranked #4
Slide 9: Execute, Innovate, Grow
Execute • Continue to build upon the Market-Led Strategy • Leverage world-class global manufacturing network for increased demand • Continue to deliver new tools such as West’s Online Store, Delta Cube and West Virtual Innovate • Connecting the dots across science and technology to realize ideas for
Slide 10: Fourth quarter and full year 2020 highlights
Fourth quarter 2020 net sales of $580.2 million grew 23.3%; organic sales growth was 19.8% Fourth quarter 2020 reported-diluted EPS of $1.29 increased 54%; adjusted-diluted EPS of $1.34 increased 63% Full year 2020 net sales of $2.147 billion grew 16.7%; organic sales growth was 16.3% Full y
Slide 11: Three Months Ended December 2020 financial results
Three Months Ended December 31 2020 2019 Reported Net Sales $580.2 $470.6 Gross Profit Margin 36.4% 32.5% Reported Operating Profit $116.1 $78.1 Adjusted Operating Profit (1) $119.1 $73.1 Reported Operating Profit Margin 20.0% 16.6% Adjusted Operating Profit Margin (1) 20.5% 15.5% Reported-Diluted E
Slide 12: Overall Organic Sales Growth – 19.8% (Q4 2020)
Overall Organic Sales Growth – 19.8% (Q4 2020) Proprietary Products Q4 2020 organic sales growth of 25.1% 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 led
Slide 13: Net sales bridge Q4 2019 to Q4 2020
580.2 87.8 16.3 5.5 470.6 Q4 2019 Volume & Mix Currency Sales Price Q4 2020
Slide 14: Gross profit and margin by segment
Three Months Ended December 31, 2020 2019 Proprietary Products Gross Profit $189.4 $134.1 Proprietary Products Gross Profit Margin 41.7% 38.0% Contract-Manufactured Products Gross Profit $21.7 $19.3 Contract-Manufactured Products Gross Profit Margin 17.2% 16.4% Consolidated Gross Profit $211.1 $153.
Slide 15: Cash Flow Items and Financial Condition
Cash Flow Items YTD 2020 YTD 2019 Depreciation and Amortization $109.1 $103.4 Operating Cash Flow $472.5 $367.2 Capital Expenditures $174.4 $126.4 Financial Condition December 31, 2020 December 31, 2019 Cash and Cash Equivalents $615.5 $439.1 Debt $255.2 $257.3 Equity $1,854.5 $1,573.2 Working Capit
Slide 16: 2021 Full-Year Guidance
2021 Full-Year Guidance Consolidated Net Sales $2.500 - $2.525 billion Reported-Diluted EPS $6.00 - $6.15
Slide 17: Execute. Innovate. Grow. Market-led Strategy
Today more than ever, we must deliver on our promise — every component has a patient’s name on it. Execute. Innovate. Grow. Market-led Strategy Global Operational Effectiveness Fueling Product & Service Innovations
Slide 18: Q & A
Eric M. Green President and Chief Executive Officer Bernard J. Birkett Senior Vice President and Chief Financial Officer Quintin Lai VP, Corporate Development, Strategy & Investor Relations Q & A
Slide 19: Non-U.S. GAAP financial measures
The non-U.S. GAAP financial measures are incorporated into our discussion and analysis as management uses them in evaluating our results of operations and believes that this information provides users a valuable insight into our overall performance and financial position. A reconciliation of these a
Slide 20: Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS (2020)
Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ millions, except EPS data) Three months ended December 31, 2020 Operating profit Income tax expense Net income Diluted EPS Reported (U.S. GAAP) $116.1 $20.4 $98.4 $1.29 Pension Settlement - 0.1 0.3 0.01 Cost Inve
Slide 21: Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS (2019)
Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ millions, except EPS data) Three months ended December 31, 2019 Operating profit Income tax expense Net income Diluted EPS Reported (U.S. GAAP) $78.1 $16.5 $63.9 $0.84 Restructuring and related charges 1.1 0.3 0.
Slide 22: Reconciliation of Net Sales to Organic Net Sales
Reconciliation of Net Sales to Organic Net Sales (1) ($ millions) Organic net sales exclude the impact from acquisitions and/or divestitures and translate the current-period reported sales of subsidiaries whose functional currency is other than the U.S. Dollar at the applicable foreign exchange rate
Slide 23: Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS Guidance
Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS Guidance 2020 Actual 2021 Guidance % Change Reported-diluted EPS (U.S. GAAP) $4.57 $6.00 to $6.15 31% to 35% Pension settlement 0.04 - Cost investment impairment 0.03 - Restructuring and severance related charges 0.07 - Amortiza
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