West Pharmaceutical Services, Inc. · NYSE:WST

West Pharmaceutical Services — Investor Presentation (January 2015)

25 slides from West Pharmaceutical Services's investor presentation, Jan 14, 2015

  1. Slide 1: West Pharmaceutical Services, Inc. Investor Presentation

    1 West Pharmaceutical Services, Inc. Investor Presentation January 14-15, 2015

  2. 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

  3. Slide 3: Today's Presentation

    3 Today’s Presentation West: Long- Established Partner Leading Packaging Systems Franchise Advancing Delivery Systems Businesses Strong Financial Position Positioned for Future Growth

  4. Slide 4: Why West?

    4 90 YEARS OF HISTORY INNOVATION MARKET LEADING SOLUTIONS Why West?

  5. Slide 5: The West Transition

    5 Initiated strategic transformation in 2001 to become a leading global supplier of value-added pharmaceutical packaging systems and components 2013 $1.37 B CAGR is the compound annual growth rate based on reported sales, excluding discontinued operations Acquisitions of businesses and technologies

  6. Slide 6: We Are Proud To Serve Our Customers

    6 PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE INDUSTRY-LEADING MARKET SHARES IN EUROPE AND NORTH AMERICA We Are Proud To Serve Our Customers

  7. Slide 7: Business Segments

    7 Business Segments 2013 Revenues (millions) Consolidated $1,368 Packaging Systems $996 Delivery Systems $374  Primary packaging components for liquid and lyophilized Rx: • Vials • Prefillable syringes • Cartridges • IV containers  Secondary packaging components  Elastomers for single-use syringe

  8. Slide 8: Packaging Systems

    8 Packaging Systems  Sales 6.7% CAGR over past 5 years (through 2013)  High-value products 11.3% CAGR over past 5 years • FluroTec ® coatings • NovaPure® components • Envision™ inspection • Westar ® processing • Daikyo RS and RU products

  9. Slide 9: Delivery Systems

    9 Delivery Systems  Sales CAGR of 5.0% over past 5 years (through 2013)  Proprietary products grew in excess of 20% per annum over past 5 years • Daikyo Crystal Zenith® vials and syringes • SmartDose® electronic wearable bolus injector • Mix2Vial administration device • érisTM safety system  Tech

  10. Slide 10: Contract Manufacturing

    Contract Manufacturing ) West€ Ss Tad The Tech Group j ee cat A West Company

  11. Slide 11: A Trusted Partner

    11 West and Daikyo components The Top 50 pharma and biotech companies in the world rely on The top 35 injectable biologics rely on West and Daikyo components > 130 million needle safety systems annually > 100 million components and assemblies for pens and auto-injectors annually A Trusted Partner

  12. Slide 12: Competitive Advantages

    12 Competitive Advantages Packaging Systems Delivery Systems  “Designed-in” primary packaging barrier to entry  Strong IP base: materials/process/ manufacturing technology (HVPs)  Global capabilities for global customers  Contract Manufacturing • Engineering and tooling  Established proprietary

  13. Slide 13: West Delivers on Global Market Drivers

    13 West Delivers on Global Market Drivers Injectables Focused Global Reach Quality Culture Ability to Reduce Costs Delivery Solutions Advanced biologic treatments for chronic diseases Globalization and consolidation Stricter regulatory and compliance standards Value-driven marketplace Differentiatio

  14. Slide 14: Injectable Therapies on the Rise

    14 Injectable Therapies on the Rise Vials Unit Growth CAGR 10-13* Unit Growth Outlook 13- 18** Syringes Cartridges Cartridges 4% 10% 8-10% 4-5% Syringes 5-6% *IMS Institute **Pharma Congress 2014, F. Haefele – BI, March 2014 Vials 3% • Antibiotics • Anti-Diabetics • Cancer • Rare Diseases • Vaccines

  15. Slide 15: Biologics—A Growing Share of Medicines

    15 Biologics—A Growing Share of Medicines 2002 11% $46 Bn 2017 Estimate 19-20% $221 Bn Biologics % share and sales values • Biologics growth driven by monoclonal antibodies (MAbs) and insulin • Emergence of biosimilars and non-original biologics (NOBs) have emerged, taking a small of the total marke

  16. Slide 16: New Biologics Face Increasing Challenges

    16 New Biologics Face Increasing Challenges…. Trends  Long-acting/depot injections  Smaller batch sizes  Technical constraints • Sensitivities • High concentration • Viscosity • Delivery route  Increasingly competitive Implications  New ways to deliver medicine  New manufacturing approach • Fl

  17. Slide 17: High-Value Product Sales, Margin Growth: Packaging Systems

    17 High-Value Product Sales, Margin Growth Pharmaceutical Packaging Systems 2009-2013 compound annual sales growth rates (excludes currency) = circles reflect relative size of 2013 sales Disposable Components High-Value Pharma Packaging Standard Pharma Packaging Category Gross Margin % 70% 35% 5 -Y

  18. Slide 18: Proprietary Product Sales, Margin Growth: Delivery Systems

    18 Proprietary Product Sales, Margin Growth Pharmaceutical Delivery Systems 2009-2013 compound annual sales growth rates (excludes currency) Contract Manufacturing Category Gross Margin % 5 -Y ear C A G R 20% 50% Proprietary Average 2013 GM 19.6% 5-Yr CAGR 5.0% = circles reflect relative size of 201

  19. Slide 19: Our Growth Initiatives 2015-2019

    19 Packaging Systems Delivery Systems  Build on Delivery Systems capabilities and proprietary products:  Daikyo Crystal Zenith  Safety and administration aids  Self-dosing devices/combination products Our Growth Initiatives 2015-2019  High-value products: modest unit growth, increasing ASP* and

  20. Slide 20: Integrating Primary Container and Device Elements

    20 Level of Customer Engagement V al u e to W e s t Strategic Focus: Integrating Primary Container and Device Elements of the Delivery System • CZ syringe + other auto-injector • ConfiDose® + glass • SmartDose® + glass • éris™ & NovaGuard™ safety + glass • Molded systems Integrated Delivery Systems

  21. Slide 21: Progress on New Proprietary Products

    21 Progress on New Proprietary Products  SmartDose Electronic Wearable Injector • First-in-human trials • Shipments of product for customer human studies • Development and supply agreements for 4 of the top 10 Biopharma companies  Daikyo Crystal Zenith Vials and Syringes • Over 30 products approve

  22. Slide 22: Geographic Expansion

    22 Geographic Expansion  Completed India metals facility • Production initiated - 7/14  Initiated Waterford, Ireland expansion • Phase 1 construction commencing - Q1/15  Expanded Kinston site to include high-value processing for components • Dual sourcing/risk mitigation - 8/14 We Are Delivering

  23. Slide 23: 2015 and Long-term Outlook

    23 2015 and Long-term Outlook  Expect 2015 sales growth to be in the 5% to 8% range, ex-currency • Currency is expected to be a significant 2015 headwind • On an annual basis, a $0.01 cent decline in EUR/USD exchange rate yields approximately $0.01 lower EPS  No expected changes in fundamental gro

  24. Slide 24: Take-Away Messages

    24  Key partner to pharmaceutical, biotech, and medical device customers  “Sticky” core business – significant barriers to entry  Strong competitive position • Diversified customer base • Maturing proprietary technology pipeline • Global footprint with strong position in fast growing Asian market

  25. Slide 25: West Pharmaceutical Services, Inc.

    25 West Pharmaceutical Services, Inc.

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