15 slides from West Pharmaceutical Services's earnings presentation, Apr 28, 2011
Slide 1: First-Quarter 2011 Analyst Conference Call
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-Quarter
Slide 2: Cautionary Statement Under the Private Securities Litigation Reform Act of 1995
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 limi
Slide 3: First Quarter 2011 Operating Results
First Quarter 2011 Operating Results • Consolidated Sales Growth: 7.3% at constant currency – Pharmaceutical Packaging Systems 8.1% – Pharmaceutical Delivery Systems 4.9% • Favorable sales mix vs. prior year – High-value packaging components: FluroTec, Westar, Envision – Proprietary devices: Reconst
Slide 4: Updated 2011 Full-year Financial Guidance
($ millions, except EPS) 2011 Revenue (1) Gross Profit % (1) Pharmaceutical Packaging Systems Segment $830 - $850 33.0% Pharmaceutical Delivery Systems Segment $330 - $340 20.5% Consolidated $1,160 - $1,190 29.5% 2011 Adjusted Diluted EPS (1)(2) $2.30 - $2.50 Updated 2011 Full-year Financial Guidanc
Slide 5: Proprietary Product Development Highlights
Proprietary Product Development Highlights • Westar RU Commercialization • Progress on Daikyo Crystal Zenith® Insert Needle Syringe – Sample demand remains strong – Market awareness is growing • PDA/FDA hosting “Glass Quality Conference” (May 2011) – Conversion of Arizona facility to clean room capa
Slide 6: Summary Results
($ millions, except per-share data ) Three Months Ended March 31 2011 2010 Net Sales $295.4 $274.7 Gross Profit 88.0 82.2 Reported Operating Profit 28.8 28.9 Adjusted Operating Profit (1) 30.7 29.5 Reported Diluted EPS $0.56 $0.57 Adjusted Diluted EPS (1) $0.60 $0.58 Summary Results $ millions, exce
Slide 7: Consolidated Revenues: First-Quarter Revenue Changes 2010 - 2011
—_—— TTT Wes t =) Delivering Innovative Solutions Consolidated Revenues First-Quarter Revenue Changes 2010 - 2011 $274.7 2010 Sales Volume & Price Currency 2011 Sales Mix
Slide 8: Consolidated First Quarter Gross Margin % 2010 - 2011
__—— West =) Delivering Innovative Solutions Consolidated First Quarter Gross Margin % 2010 - 2011 1.4% | (2.0%) (0.6%) 29.9% 29.8% 2010 Volume& Sales Labor& Material Overhead 2011 Mix Price Efficiency Price & Other
Slide 9: Consolidated SG&A First Quarter 2010 - 2011 Costs Reconciliation
__—_ West =) Delivering Innovative Solutions ConsolidatedSG&A First Quarter 2010 - 2011 Costs Reconciliation ($ millions) $1.2 oo gl, 2 $1.0 = be $46.6 2019 Stoop ther 6 Ales 6 Cy "ran, Al Se, mp, omm, Icy Com Nay, "Sic, Nsa4, n ns tion
Slide 10: Cash Flow Metrics
Quarter Ended March 31, 2011 2010 Depreciation and amortization $19.5 $17.7 Operating cash flow $9.5 $11.5 Capital expenditures $19.4 $17.7 Cash Flow Metrics ($ millions)
Slide 11: Summary Balance Sheet Information
As of March 31, 2011 December 31, 2010 Cash and cash equivalents $94.6 $110.2 Debt $371.0 $358.4 Equity $663.1 $625.7 Net debt to total invested capital 29.4% 28.4% Working capital $298.3 $266.9 Summary Balance Sheet Information
Slide 12: Updated 2011 Full-year Financial Guidance
($ millions, except EPS) 2011 Revenue (1) Gross Profit % (1) Pharmaceutical Packaging Systems Segment $830 - $850 33.0% Pharmaceutical Delivery Systems Segment $330 - $340 20.5% Consolidated $1,160 - $1,190 29.5% 2011 Adjusted Diluted EPS (1)(2) $2.30 - $2.50 Updated 2011 Full-year Financial Guidanc
Slide 13: Non-GAAP Financial Measures
As Reported March 31, 2011 Restructuring and related charges Discrete tax items Non-GAAP March 31, 2011 Operating profit $28.8 $1.9 $- $30.7 Interest expense, net 4.5 - - 4.5 Income before income taxes 24.3 1.9 - 26.2 Income tax expense 6.1 0.6 (0.2) 6.5 Equity in net income of affiliated companies
Slide 14: Notes to Non-GAAP Financial Measures
NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. These slides use non-GAAP financial measures. West believes that these non-GAAP measures of financial results provide useful information to management and investors regarding cert
Slide 15: Reconciliation of 2011 Adjusted Guidance to Reported Guidance
Full Year 2011 Guidance (1) Diluted Earnings Per Share Adjusted guidance $2.30 to $2.50 Restructuring, net of tax (0.09) - (0.08) Reported guidance $2.21 to $2.42 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. Reconciliation o