16 slides from West Pharmaceutical Services's earnings presentation, Oct 30, 2014
Slide 1: Third-Quarter 2014 Analyst Conference Call
1 Speakers: Donald E. Morel, Jr. Chairman and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer All trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., unless noted otherwise. West Pharmaceutical Services, Inc. Thir
Slide 2: Cautionary Statement Under the Private Securities Litigation Reform Act of 1995
2 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 li
Slide 3: Third-Quarter 2014 Summary Results
3 Third-Quarter 2014 Summary Results $ millions, except earnings per-share (EPS) data (1) Adjusted operating profit and adjusted diluted EPS are Non-GAAP measurements. See discussion under the heading “Non-GAAP Financial Measures” in this release. ($ millions, except per-share data) Three Months End
Slide 4: Third-Quarter Operating Results
4 Third-Quarter Operating Results • Sales growth and stronger mix • Pharmaceutical Delivery Systems sales grew 14.8% • Proprietary product sales up 33.6% • Comprise 27.4% of segment sales • Led by administration systems and SmartDose® electronic wearable injector • Contract manufacturing grew 8.2%,
Slide 5: Expansion and Product Development
5 Expansion and Product Development Geographic expansion: • India facility began commercial production in Q3 • Announced plans for new Waterford, Ireland facility on October 2, 2014 Initial capacity supporting key insulin products Future expansion to support evolving high-value product needs
Slide 6: 2014 Outlook
6 2014 Outlook Overall annual revenue growth 3% to 4%, excluding currency Confirming prior EPS guidance • Adjusted diluted EPS estimate range of $1.77 to $1.82 PPS: • High-value product growth, sales mix expected to drive profitability PDS: • Proprietary products expected to generate growth
Slide 7: 2015 and Long-term Outlook
7 2015 and Long-term Outlook Expect 2015 sales growth to be in the 5% to 8% range, ex-currency No fundamental changes in long-term growth strategies and drivers • Growth in high-value components • Geographic expansion • Efficiency in operations • Commercialize proprietary device products “Zero
Slide 8: Change in Consolidated Sales Third-Quarter 2013 to 2014
8 Change in Consolidated Sales Third-Quarter 2013 to 2014 ($ millions) $355.9 $0.2 $11.6 $2.7 $341.8 2013 Sales Volume & Mix Sales Price Currency 2014 Sales
Slide 9: Change in Consolidated Gross Profit Margin % Third-Quarter 2013 to 2014
9 Change in Consolidated Gross Profit Margin % Third-Quarter 2013 to 2014 30.9% 0.9% 0.5% 0.5% 0.0% 30.8% 2014 2013
Slide 10: Change in SG&A Costs Third-Quarter 2013 to 2014
10 Change in SG&A Costs Third-Quarter 2013 to 2014 ($ millions) $56.0 $3.4 $0.6 $2.1 $1.8 $56.1
Slide 11: Cash Flow Metrics
11 Cash Flow Metrics ($ millions) (1) 2013 capital expenditures includes $35 million of 2013 funding associated with the Company’s new headquarters and research facility, most of which was incurred and recorded in earlier years Nine Months Ended September 30, 2014 2013 Depreciation and amortization
Slide 12: Summary Balance Sheet Information
12 Summary Balance Sheet Information ($ millions) † Net debt to total invested capital is a Non-GAAP measure, which management believes provides a useful measure of the comparative degree of West’s financial leverage. Net debt is determined by reducing total debt by the amount of cash and cash equiv
Slide 13: 2014 Full-year Financial Guidance
13 2014 Full-year Financial Guidance ($ millions, except EPS) Estimated 2014 Revenue(1) Estimated Gross Profit %(1) Pharmaceutical Packaging Systems Segment $1,010 - $1,025 36.8% to 37.3% Pharmaceutical Delivery Systems Segment $400 - $410 19.7% to 20.2% Consolidated $1,410 - $1,435 31.9% - 32.1 % C
Slide 14: Notes to Non-GAAP Financial Measures
14 Notes to Non-GAAP Financial Measures For additional details, please see today’s press release and 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
Slide 15: Notes to Non-GAAP Financial Measures: Reconciliation of Non-GAAP Measures
15 Notes to Non-GAAP Financial Measures(1) RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slide 14), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items.
Slide 16: Notes to Non-GAAP Financial Measures: 2014 Adjusted EPS Guidance Reconciliation
16 Notes to Non-GAAP Financial Measures For additional details, please see today’s press release and Safe Harbor Statement. Reconciliation of 2014 Adjusted Diluted EPS Guidance to 2014 Reported Guidance Full Year 2014 Guidance (1) (2) Adjusted diluted EPS guidance $1.77 to $1.82 License costs (0.01)