West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — CJS Conference August 2006
21 slides from West Pharmaceutical Services's conference presentation, Aug 15, 2006
Slide 1: William J. Federici, VP & Chief Financial Officer
William J. Federici VP & Chief Financial Officer Michael A. Anderson VP & Treasurer
Slide 2: Forward-looking statements
Certain statements contained in this presentation and certain statements that may be made by management of the Company orally during this presentation are forward-looking statements that set forth anticipated results based on management’s plans and assumptions. Such statements give our current expec
Slide 3: Corporate Profile
Corporate Profile World's premier manufacturer of components and systems for injectable drug delivery Stoppers and seals for vials Disposable components used in syringe, IV, blood collection and diagnostic systems Founded in 1923 HQ in Lionville, PA 2005 sales $700M Market capitalization $1.2 Billio
Slide 4: Diverse Customer Base
Diverse Customer Base Company Estimated Market Share: 70% in Pharma; 70% in Device; 95% in Biotech
Slide 5: Global Presence
32 manufacturing sites 34 sales offices 7 technical centers 6,000 employees worldwide Global Presence
Slide 6: Key Company Developments
Key Company Developments Acquisition of Monarch Laboratories Acquisition of The Tech Group Acquisition of Medimop Sale of GFI Clinical Unit Sale of Contract Manufacturing Operations New management team Restructuring and increased CAPEX Sale of OTC Research Services Group Kinston plant accident Kinst
Slide 7: FY05 Net sales: Approx. $700 MM
FY05 Net sales: Approx. $700 MM Business Segments
Slide 8: Geographic Sales Mix
Geographic Sales Mix (2005, based on point of sale)
Slide 9: West's Competitive Edge
West’s Competitive Edge Unmatched experience/expertise: drug material interface Ability to source components from multiple locations globally Protected IP : West’s components and systems Regulatory barrier to entry : NDA and ANDA filing must include reference to all packaging/components in contact w
Slide 10: Diabetes
Diabetes Components for Pen System Applications Components for Traditional System Applications Devices
Slide 11: Biotechnology/Oncology: FluroTec and Westar
FluroTec ® and Barrier Coatings Westar ® Processing West Spectra TM Biotechnology/Oncology
Slide 12: Corporate Growth Strategy
Corporate Growth Strategy Core Pharmaceutical Systems Business Maximize the value of West’s core business (Company estimated market: $1.1 BN) Market segmentation Generate maximum value from key growth drivers New product innovation Lean manufacturing Geographic expansion Strategic acquisitions Medim
Slide 13: Corporate Growth Strategy: Tech Group Business
Corporate Growth Strategy Tech Group Business Build market share in multi-component systems for drug delivery (Company estimated market: $4.5 BN) Leverage customer base Develop a portfolio of proprietary systems for injectable, transmucosal, and pulmonary delivery Pursue selected consumer opportunit
Slide 14: Investment Considerations
Investment Considerations Established platform for sustainable growth Significant barriers to entry Favorable growth drivers in key market segments Global, diverse customer base Global manufacturing capability Strong, experienced management team Strong corporate governance
Slide 15: GAAP/Non-GAAP Reconciliation
.12 - - - - - Interest Payment $1.15* $1.40 $1.33 $1.32 $.96 $.83 EPS Non-GAAP - - (.02) - - - Affiliate Gain - - .30 (.42) - - Kinston - - - - (.03) - Foreign Currency (.02) .05 (.07) - (.09) - Unusual Tax Items - (.04) .03 .26 .30 .05 Restructuring $1.05 $1.39 $1.09 $1.48 $.78 $.78 EPS Reported 1
Slide 16: Second Quarter Results
Second Quarter Results ($ in millions, except per share data) $0.38 $0.62 E.P.S. from Continuing Operations $0.37 $0.62 Non-GAAP E.P.S. from Continuing Operations $12.2 $20.7 Income from Continuing Operations $19.9 $32.1 Operating Profit $31.9 $36.9 Selling, General & Administrative Expenses 29% 29%
Slide 17: Capital Management
Capital Management $118.8 $136.6 Working Capital $26.8 YTD Spending Full Yr Expected - up to $95 Capital Expenditures: 45.0% 39.8% Debt to Total Invested Capital $625.0 $652.7 Total Capitalization $281.0 $259.9 Total Debt 12/31/05 6/30/06 ($M)
Slide 18: Operating margin by segment
WEST ?2rrecuticalyps CJS Conference August, 2006 S60 B5% Bow H5% 318% 30.0% 25.0% 20.0% 16.0% + 13.8% 13.4% 13.8% 14.59% 10.0% 5.0% 0.0% 2004 2005 2 2006 m Tech Group m Pharmaceutical Systems|
Slide 19: Debt Maturity Schedule
Debt Maturity Schedule ($ in millions)
Slide 20: Debt to Total Capitalization
Debt to Total Capitalization Goal: 40-45% excluding acquisitions and significant capital expansion
Slide 21: Summary
Summary West has a set of competitive advantages that uniquely position the company for future growth These competitive advantages capitalize on the primary growth drivers in key market segments Global, diverse customer base Solid financial base Strong, experienced management team focused on executi
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