West Pharmaceutical Services, Inc. · NYSE:WST

West Pharmaceutical Services — Barclays Global Healthcare Conference 2013

22 slides from West Pharmaceutical Services's conference presentation, Mar 14, 2013

  1. Slide 1: West Pharmaceutical Services, Barclays Global Healthcare Conference

    1 West Pharmaceutical Services, Inc. Barclays Global Healthcare Conference Miami, FL March 14, 2013

  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: Today's Discussion

    3 Today’s Discussion  “By your side” (for 90 Years)  Foundations for growth  Growth drivers  Results and outlook

  4. Slide 4: By Your Side for 90 Years

    Partnering with our pharmaceutical, device and biotechnology customers from their beginnings, we’ve grown… …to become the preeminent supplier of products used in containing and administering small-volume parenteral drugs For 90 Years

  5. Slide 5: A Diverse, Stable Customer Base

    5 PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE A Diverse, Stable Customer Base (representative healthcare customers) Industry-leading market shares in Europe and North America

  6. Slide 6: Business Segments 2012 Revenues

    6 Business Segments 2012 Revenues (millions)  Contract manufacturing for: • Rx injection systems • Diagnostics, medical/surgical • Consumer  Proprietary products: • Drug reconstitution and fluid transfer • Needle safety •Daikyo Crystal Zenith® products • Drug administration devices • Primary packa

  7. Slide 7: Competitive Advantages

    7 Competitive Advantages Pharmaceutical Packaging  Category leader in mature end-markets  “Designed-in” primary packaging barrier to entry  Strong IP base - materials/process/manufacturing technology (HVPs)  Global capabilities for global customers  Key partnerships – Daikyo Seiko, West Mexico

  8. Slide 8: Overall Pharmaceutical Market Outlook 2011-2016

    8 Source: IMS Market Prognosis 2012; IMSCG Analysis; Note1: Pharmerging Markets refers to : China, Brazil, Russia, India, Venezuela, Poland, Argentina, Turkey, Mexico, Ukraine, Vietnam, South Africa, Thailand, Indonesia, Romania, Egypt, Pakistan United States Size: US$322Bn CAGR 2011-16: 2.4 % Japan

  9. Slide 9: Injectable Drug Growth: More, better, different

    9 Injectable Drug Growth: More, better, different  Persistent growth of injectable therapeutics: • Insulins • Biologics and specialty drugs • Orphan drugs • Generics and biosimilars  Increasing industry and regulatory standards: • Quality • Safety  Changing point-of-care: • Patient focused - Ease

  10. Slide 10: Our Growth Initiatives 2013-2017

    10 Our Growth Initiatives 2013-2017 Daikyo Crystal Zenith® is a registered trademark of Daikyo Seiko, Ltd. Packaging Systems Delivery Systems High-value products: modest unit growth, increasing ASP and margin Geographic expansion: China, India sourcing and end-markets Optimize global operating effic

  11. Slide 11: High-Value Product Sales, Margin Growth

    High-Value Product Sales, Margin Growth Pharmaceutical Packaging Systems 2008-2012 compound annual sales growth rates (excludes currency) Circles reflect relative size of 2012 sales 11

  12. Slide 12: Geographic Expansion: Asia-Pacific

    12 Geographic Expansion: Asia-Pacific Singapore: 1. High-value Product Focus 2. Asia-Pacific market & special items 3. R&D hub & technical center China IV Plastic: Global supply China Elastomer: China market, Efficiency focus India Elastomers: 1. Domestic standard products & local support for multi-

  13. Slide 13: Strategic Focus: Integrating Primary Container and Device Components

    13 Strategic Focus: Integrating Primary Container and Device Components Elements of the delivery system Integrated delivery system • CZ® syringe + other auto-injector • ConfiDose® + glass • SmartDose® + glass • B.Safe® + glass • Molded systems • SmartDose® + CZ® cartridge • ConfiDose® + CZ® • B.Safe

  14. Slide 14: Daikyo CZ Solution with FluroTec Barrier Film

    14 Daikyo CZ Solution with Daikyo FluroTec® Barrier Film  Reduces: • Drug exposure to extractables • Risk of protein aggregation caused by silicone oil • In-process breakage and product returns caused by broken glass • Risk of delamination and glass-particulate contamination • Associated product re

  15. Slide 15: SmartDose Electronic Patch Injector Technology Platform

    15 SmartDose® Electronic Patch Injector Technology Platform Programmed by PDA or PC Dose may be customized Applied and activated by patient  Controlled, subcutaneous, micro-infusion delivery of high volumes and high viscosity drugs  Prefilled cartridge, no need for user filling  Based on Daikyo C

  16. Slide 16: 2012 Overview

    16 2012 Overview (1) These are Non-GAAP measurements. See “Reconciliation of Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” at the end of this presentation. ($ millions, except per-share data) Year Ended December 31, 2012 2011 Net Sales $ 1,266.4 $1,192.3 Gross Profit 387.7

  17. Slide 17: Looking Forward

    17 Looking Forward  2013: Growth continues • HVPs enhance the sales mix • Customer inventory requirements, our lead times and backlog • New facility start-up costs • Currency and commodity volatility  Longer-term performance should be driven by: • Further HVP market penetration • “Lean” productivi

  18. Slide 18: Key Take-Away Messages

    18 Key Take-Away Messages  Designed-in supply-chain partner to pharmaceutical, biotech and medical device customers  Increasing quality and value of our products  Growing portfolio of proprietary products  Well positioned in fast-growing Asian markets  Strong balance sheet, operating cash flow

  19. Slide 19: West Pharmaceutical Services, Inc.

    19 West Pharmaceutical Services, Inc.

  20. Slide 20: Non-GAAP Financial Measures Reconciliation

    20 Non-GAAP Financial Measures Reconciliation of GAAP and Non-GAAP measures (millions, except per-share data) Year ended December 31, 2012 Operating profit Loss on debt extinguishment Income tax expense Net income Diluted EPS Reported (GAAP) 135.1$ 11.6$ 32.7$ 80.7$ 2.30$ Restructuring, impairment &

  21. Slide 21: Notes to Non-GAAP Financial Measures

    21 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see Safe Harbor Statement (slide 2) (continued on following slide) These presentation materials and associated presentation may use the following non-GAAP financial measures:  Adjusted operating profit  Adjusted net income  Ad

  22. Slide 22: Notes to Non-GAAP Financial Measures (continued)

    22 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see Safe Harbor Statement (Slide 2) The following is a description of the items excluded from adjusted operating profit, adjusted net income and adjusted diluted EPS for the periods presented in the accompanying tables: Restructu

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