West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q1 2013 Earnings Presentation
16 slides from West Pharmaceutical Services's earnings presentation, May 2, 2013
Slide 1: First-Quarter 2013 Analyst Conference Call
1 Speakers: Donald E. Morel, Jr. Chairman and Chief Executive Officer William J. Federici 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. First-Quart
Slide 2: Cautionary Statement
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: First-Quarter Summary Results
3 First-Quarter Summary Results (1) These are Non-GAAP measurements. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 14-16), “Cautionary Statement” (Slide 2) and see “Non-GAAP Financial Measures” in today’s press release for an explanation and reconciliation of t
Slide 4: First-Quarter Operating Results
4 First-Quarter Operating Results Overall sales growth 7.2% (All growth rates are based on comparisons excluding currency) • Pharmaceutical Packaging Systems up 6.6% High-value products grew 11.2% Backlog 16% higher than Q1 2012, 3% over year end • Pharmaceutical Delivery Systems 9.1% Persis
Slide 5: Expansion and Product Development
5 Expansion and Product Development Investments in Value-added products and specific capacity • Investment in post-molding processes (e.g., Westar, vision systems) • Meeting higher quality demands of regulators, products, customers • Conversion of Kinston operations to HVPs Geographic expansion:
Slide 6: 2013 Outlook
6 2013 Outlook Sales growth 7% to 9%, excluding currency Pharmaceutical Systems: • High-value products growth improves sales mix • Margins improving • Managing lead-times Delivery Systems: • Growing base of proprietary product sales • Steady growth in contract manufacturing R&D Investments c
Slide 7: Change in Consolidated Sales First-Quarter 2012 to 2013
7 Change in Consolidated Sales First-Quarter 2012 to 2013 ($ millions) $339.4 $16.3 $6.4 $0.4 $316.3 2012 Sales Volume & Mix Sales Price Currency 2013 Sales
Slide 8: Change in Consolidated Gross Profit Margin %
8 Change in Consolidated Gross Profit Margin % First-Quarter 2012 to 2013 32.9% (0.3%) (0.6%) 1.3% 0.6% 31.9%
Slide 9: Change in SG&A Costs First-Quarter 2012 to 2013
9 Change in SG&A Costs First-Quarter 2012 to 2013 ($ millions) $59.1 $2.3 $2.1 $1.5 $1.4 $0.5 $51.3
Slide 10: Cash Flow Metrics
10 Cash Flow Metrics ($ millions) Three Months Ended March 31, 2013 2012 Depreciation and amortization $20.5 $18.6 Operating cash flow $18.9 $13.8 Capital expenditures $61.7 $32.4
Slide 11: Summary Balance Sheet Information
11 Summary Balance Sheet Information ($ millions) As of March 31, 2013 December 31, 2012 Cash and cash equivalents $175.0 $161.9 Debt $430.1 $411.5 Equity $745.9 $728.9 Net debt to total invested capital† 25.5% 25.5% Working capital $381.6 $295.5 † Net debt to total invested capital is a Non-GAAP me
Slide 12: 2013 Full-year Financial Guidance
12 2013 Full-year Financial Guidance ($ millions, except EPS) Estimated 2013 Revenue(1) Estimated Gross Profit %(1) Pharmaceutical Packaging Systems Segment $990 - $1,020 35.3% to 35.7% Pharmaceutical Delivery Systems Segment $370 - $380 20.5% to 21.5% Consolidated $1,360 - $1,400 31.2% - 31.8% 2013
Slide 13: Selected Factors Expected to Impact 2013
13 Selected Factors Expected to Impact 2013 High-value packaging and proprietary products are expected to drive sales and profitability • Certain proprietary product sales expectations at higher risk Price increases are less significant than in 2012 Customer inventory-building is contributing
Slide 14: Non-GAAP Financial Measures
14 Non-GAAP Financial Measures(1) Three Months Ended March 31, 2013 and 2012 (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slides 15-16), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Three-mont
Slide 15: Notes to Non-GAAP Financial Measures
15 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 16: Notes to Non-GAAP Financial Measures
16 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. Reconciliation Of 2013 Adjusted Diluted EPS Guidance to 2013 Reported Guidance Full Year 2013 Guidance (1) (2) Adjusted diluted EPS guidance $3.05 to $3.20 Extinguishment of de
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