West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Barclays 2010 Global Healthcare Conference
22 slides from West Pharmaceutical Services's conference presentation, Mar 24, 2010
Slide 1: Barclays 2010 Global Healthcare Conference
Donald E. Morel Chairman and Chief Executive Officer William J. Federici Vice President and Chief Financial Officer Investor Relations Contact: Michael A. Anderson Vice President and Treasurer mike.anderson@westpharma.com Barclays 2010 Global Healthcare Conference Miami, FL March 24, 2010 NYSE: WST
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on management’s beliefs and assumptions, current expectati
Slide 3: Corporate Profile
Corporate Profile • For more than eighty years, a global leader in the development and manufacturing of components and systems for injectable drug delivery – Vial closure systems – Prefillable syringe components – Components for diagnostics – Devices and device sub- assemblies Devices – Safety and a
Slide 4: West Pharmaceutical Services Today
West Pharmaceutical Services Today 6,000 employees worldwide ● 32 plants in 10 countries ● 34 sales offices ● 7 technical centers 4
Slide 5: 2009 in Retrospect
2009 in Retrospect • Challenges: – Adverse effects of pension expense, currency effects – Recession impacted customer order patterns • Tighter cost, working capital and inventory management • Some major programs delayed or cancelled – First half sales declines • Full year revenues grew by 3.5 % excl
Slide 6: 2009 Revenue Growth vs. Prior Year Period
2009 Revenue Growth vs. Prior Year Period by Business Segment 6
Slide 7: Ex-Currency Growth, Currency Translation and Major Changes
• Ex-Currency, Growth was: $ 32.2 Revenue (13.2%) $ 10.2 Gross Profit (14.7%) $ 2.2 Adjusted Operating Profit (7.9%) • Currency translation added: $ 16.3 Revenue $ 4.1 Gross Profit $ 1.8 Operating Profit • Major Changes: – H1N1-related, prefillable component, and metal seal sales – Lower relative SG
Slide 8: Sales and Income from Continuing Operations
Sales and Income from Continuing Operations ($ in millions) 8
Slide 9: 2010 Business Environment
2010 Business Environment • Global economic conditions remain soft, but show signs of improvement • Analyzing future impact of US healthcare legislation • Global pharmaceutical revenue growth projected to be 4-6% (per IMS) on modest unit growth • North America growth projected at 4.5 - 5.5% • Europe
Slide 10: 2010 Expectations and Milestones
2010 Expectations and Milestones • Revenue Growth: 3% to 5% (excluding currency) – Consolidated revenues: $1,090 - $1,120 million1 • Consolidated Gross Margin of 30.5% • Adjusted Diluted2 EPS: $2.19 to $2.39 • Validate new Daikyo CZ production cell • Secure first Daikyo CZ commercial program • Break
Slide 11: Business Unit Re-alignment
Business Unit Re-alignment Pharmaceutical Packaging Pharmaceutical Delivery Systems Systems (How drugs are contained) (How drugs are administered) Primary Container Solutions Administration Systems • Small volume parenteral • Safety systems (NovaGuard, Eris) packaging • Reconstitution systems - • La
Slide 12: Five-Year Growth Opportunity
Five-Year Growth Opportunity Pharmaceutical Pharmaceutical Delivery Packaging Systems Systems Primary Container Solutions Administration Systems $1.5 billion market for components with unit $2 billion combined markets for safety, growth 0% to 8% per year, depending on prefilled and auto-injectors, w
Slide 13: Long Term Business Drivers
Long Term Business Drivers • Demographics • Growth in Biologics & Vaccines • Requirement for easy, safe, accurate dosing • Combination product growth • Generic growth West supplies sophisticated • Increasing global access to packaging systems for the top 20 advanced healthcare biologic drugs (by sal
Slide 14: Therapeutic Category Drivers
Therapeutic Category Drivers Projected Category Key Customers Growth Diabetes 8 - 10% Oncology 6 - 8% Vaccines 4 - 6% Autoimmune 6 - 8% 14
Slide 15: Our Growth Strategy
Our Growth Strategy Pharmaceutical Packaging Systems West’s Competitive Advantages: (How drugs are contained) Primary Container Solutions • Unmatched expertise in drug - material interactions • Market leader in packaging for • Therapeutic segment focus biologics • Generate incremental value per • Pr
Slide 16: Value Proposition
Value Proposition Revenue and Margin Packaging Delivery Opportunity PROPRIETARY PRODUCTS éris™ Westar® RU NovaGuard™ Westar® RS Mix2Vial® Standard Standard Disposable Disposable Device Device Consumer Consumer Components Components Components Components Products Products 16
Slide 17: Our Growth Strategy
Our Growth Strategy Pharmaceutical Packaging Pharmaceutical Delivery Systems Systems Primary Container Solutions Administration Systems • Therapeutic segment focus • Concentrate on systems for unmet • Generate incremental value per market needs unit • Build market share in multi- • Leverage changing
Slide 18: Pharmaceutical Delivery Systems Key Programs
Pharmaceutical Delivery Systems Key Programs ConfiDose® MixJect® Auto- Daikyo Crystal Zenith® injector NovaGuard™ Safety éris™ Vial2Bag™ Mix2Vial® Needle Device Safety Needle (luer-lock syringe) Devicesyringe) (fixed-needle 18
Slide 19: Management Focus
Management Focus • Pharmaceutical Packaging Systems – Organic growth (on average) of 3-5% per year – Margin expansion through improved operating efficiency, product mix – Capital investments targeted at enhanced quality and value • Pharmaceutical Delivery Systems – Deliver the potential of Daikyo CZ
Slide 20: Summary
Summary • A valuable franchise Injectable Container Solutions – Substantial market share – Proprietary technology – Diversified Customer Base – Global footprint • Positioned to grow – Strength in new product pipeline Prefillable Syringe Systems – Preferred products for biologics Safety and • With th
Slide 21: Contact
Donald E. Morel Chairman and Chief Executive Officer William J. Federici Vice President and Chief Financial Officer Investor Relations Contact: Michael A. Anderson Vice President and Treasurer mike.anderson@westpharma.com Barclays 2010 Global Healthcare Conference Miami, FL March 24, 2010 NYSE: WST
Slide 22: Slide 22
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