West Pharmaceutical Services, Inc. · NYSE:WST

West Pharmaceutical Services — Conference Presentation (January 2016)

18 slides from West Pharmaceutical Services's conference presentation, Jan 13, 2016

  1. Slide 1: West Pharmaceutical Services, Inc.

    1 West Pharmaceutical Services, Inc.

  2. Slide 2: Safe harbor statement

    2 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 i

  3. Slide 3: Who we are

    3 Who we are By your side… Every day, injectable drugs are administered to improve the lives of millions of patients around the world. West works side-by-side with its pharmaceutical, biopharmaceutical, generic and medical device partners to design and manufacture packaging and delivery systems that

  4. Slide 4: West's role in delivering medicines to patients

    4 Proprietary Products  Stoppers  Seals  Caps  Prefillable Syringes & Components  Self-Injection Devices  CZ Vials & Syringes  Drug Reconstitution Administration Proprietary Products $1.1B Contract Manufacturing $0.3B West’s role in delivering medicines to patients Contract Manufacturing  En

  5. Slide 5: An integral part of the healthcare industry

    5 An integral part of the healthcare industry Top 35 injectable biologics rely on West and Daikyo components ~40 Billion components manufactured annually Top 75 Supplier to the top pharmaceutical & biotech injectable companies

  6. Slide 6: Market trends support growth opportunities

    6 Market trends support growth opportunities West is well-positioned to offer packaging & delivery options to address customer needs Increase in Generics & Biosimilars Biologic Product Pipelines Demand for Alternative Treatment & Delivery Options Aging Population & Developing Economies Increase Dema

  7. Slide 7: West business—at a glance

    7 West business—at a glance 2014 Net Sales by Category No customer greater than 8% of net sales Operations in 20 countries & 26 sites >7,000 employees 7% 35% 6% 31%  High-Value Components  Standard Packaging  Disposable Components  Proprietary Devices  Contract Manufacturing 2014 Net Sales by G

  8. Slide 8: Sustained, consistent growth

    Sustained, consistent growth 2010 2011 2012 2013 2014 6.1% CAGR $1,104.7 $1,421.4 2010 2011 2012 2013 2014 $0.95 $1.75 2010 2011 2012 2013 2014 + 260 BPS 7.6% 10.2% Net Sales 2010 – 2014 (reported, $ millions) Diluted EPS 2010 – 2014 ROIC 2010 – 2014 8 6.1% CAGR Strong net sales & EPS growth and ROI

  9. Slide 9: Cash-flow and allocation

    Strong Operating Cash Flow Capital Allocation Priorities:  Investing in our business  Dividends  Inorganic growth  Debt repayment  Stock repurchase Cash-flow and allocation 9

  10. Slide 10: Product net sales & margin growth 2010-2014

    10 Circles reflect relative size of 2014 net sales Disposable Components Standard Packaging High-Value Components -5% 0% 5% 10% 15% 20% 25% 0% 30% 60% 2014 Category Gross Margin % Proprietary Devices Contract Manufacturing 2014 GM 31.5% 5-Yr Sales CAGR 6.4% Product net sales & margin growth 2010-201

  11. Slide 11: Long-term strategy

    11 Long-term strategy Market Focus Customer Experience Product & Service Differentiation Operational Excellence Become the world leader in integrated containment and delivery of injectable medicines

  12. Slide 12: Market focus

    12 Market focus Biologics are expected to account for 50% of the top 100 selling drugs in 2016. The injectable drug volume market is growing at a 6% CAGR. Generics expected to represent 10.5% of total prescriptions by 2020. West can address these unique market needs with tailored product and service

  13. Slide 13: Differentiated products: Increasing levels of quality

    13 Differentiated products: Increasing levels of quality Coated Washed Sterilized Camera- inspected Top Quality West can deliver increasing levels of quality to suit particular customer and drug requirements

  14. Slide 14: Differentiated products: An integrated approach

    14 Ease of use, compliance, accuracy, human factors Safety, efficacy, dosage, frequency Synergy, functionality, manufacture, preparation Stability, quality, materials, filling Patient Dru g D e li v e ry D e v ic e Primary Container Integrated Drug Delivery System Differentiated products: An integra

  15. Slide 15: Differentiated services: Contract Manufacturing

    15  Focused on pharmaceutical and medical device markets  Recognized expertise in design, manufacture and automated assembly of complex delivery devices  Key partner in the growing diabetes market  Received Frost & Sullivan Manufacturing Leadership Award  Excellence in quality control Different

  16. Slide 16: Operational excellence

    16 Operational excellence  Leveraging our manufacturing plants  Establishing centers of excellence to serve key markets  New campus facility in Waterford, Ireland  Expanded & upgraded Kinston, NC & Singapore  New India plant serving emerging markets  Lean and operational excellence initiatives

  17. Slide 17: Take-away messages

    17  Key partner to pharmaceutical, biotech, generic and medical device customers  Strong competitive position with high barriers to entry  Designed into regulated products  Substantial investment in global footprint  Recognized for scientific and technical expertise  Differentiated product off

  18. Slide 18: West Pharmaceutical Services, Inc.

    18 West Pharmaceutical Services, Inc.

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