West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q3 2022 Earnings Presentation
21 slides from West Pharmaceutical Services's earnings presentation, Oct 27, 2022
Slide 1: Third-Quarter 2022 Earnings
1 Third-Quarter 2022 Third Quarter Overall Net Sales $686.9M | 2.8% Diluted Earnings Per Share: $1.59 Adjusted Diluted Earnings Per Share: $2.03 Eric M. Green President and Chief Executive Officer, Chair of the Board West Pharmaceutical Services, Inc. WST Q3 2022 Earnings Cautionary Statement Under
Slide 2: Third-Quarter Results 2022 Analyst Conference Call
West Pharmaceutical Services, Inc. Eric M. Green President & CEO, Chair of the Board Bernard J. Birkett Senior VP & Chief Financial and Operations Officer Third-Quarter Results 2022 Analyst Conference Call 9 a.m. Eastern Time | October 27, 2022
Slide 3: West Analyst Conference Call
3 West Analyst Conference Call 9 a.m. Eastern Time October 27, 2022 A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com To participate on the call by asking questions to Management, please register in advance at https://bit.ly/3eipdG3. Up
Slide 4: Safe Harbor Statement
4 Safe Harbor Statement 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 limited to, statements about product development, operation
Slide 5: Financial Highlights
5 Financial Highlights WST Q3 2022 Earnings • Third quarter 2022 net sales of $686.9 million declined 2.8%; organic net sales growth was 4.3% • Third quarter 2022 reported-diluted EPS of $1.59 compared to $2.31 in the same period last year; adjusted-diluted EPS of $2.03 compared to $2.06 in the same
Slide 6: Q4 Outlook and Preliminary 2023
6 Q4 Outlook and Preliminary 2023 WST Q3 2022 Earnings • Base business to grow, led by Biologics market unit • Order book of base demand remains strong, non-COVID-19 • Focus and urgency to address capacity constraints
Slide 7: Showcasing our Scientific Leadership and Technical Expertise
7 S h owc a s i n g o u r S c i e n t i f i c L eade r s h i p a nd Te ch n i ca l Exp er t i s e Col l ab o rat i o n w i t h Co r n i n g Execute. Innovate. Grow. A commitment and focus to deliver superior value to our customers and patients WST Q3 2022 Earnings S m a r t D o s e ® O n -B o dy D e
Slide 8: Investing in Capacity across the Globe
8 Investing in Capacity across the Globe AMERICAS EXPANSION PROGRESS EUROPE EXPANSION PROGRESS ASIA PACIFIC EXPANSION PROGRESS Kinston Williamsport & Jersey Shore Waterford Kovin Eschweiler Jurong, Singapore WST Q3 2022 Earnings 8
Slide 9: Third-Quarter 2022 Summary Results
9 Third-Quarter 2022 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended September 30 2022 2021 Reported Net Sales $686.9 $706.5 Gross Profit Margin 39.0% 40.8% Reported Operating Profit $186.2 $181.4 Adjusted Operating Profit (1) $186.4 $182.8 Reported Operating Pr
Slide 10: Overall Organic Net Sales Growth – 4.3% (Q3 2022)
10 Overall Organic Net Sales Growth – 4.3% (Q3 2022) Proprietary Products Q3 2022 organic net sales growth of 5.5% led by sales of high-value products, which grew mid-single digits BIOLOGICS GENERICS PHARMA Sales led by COVID one-time fees, SmartDose®, NovaPure® and CZ components Sales led by high-v
Slide 11: Change in Consolidated Net Sales
11 Change in Consolidated Net Sales Third-quarter 2021 to 2022 ($ millions) WST Q3 2022 Earnings
Slide 12: Gross Profit Update
12 Gross Profit Update ($ millions) Three Months Ended September 30, 2022 2021 Proprietary Products Gross Profit $247.3 $267.3 Proprietary Products Gross Profit Margin 43.6% 46.3% Contract-Manufactured Products Gross Profit $20.7 $20.9 Contract-Manufactured Products Gross Profit Margin 17.3% 16.1% C
Slide 13: Cash Flow and Balance Sheet Metrics
13 Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items YTD Q3 2022 YTD Q3 2021 Depreciation and Amortization $89.5 $87.9 Operating Cash Flow $493.2 $423.2 Capital Expenditures $189.7 $176.9 Free Cash Flow $303.5 $246.3 Financial Condition September 30, 2022 December 31, 2021 Cash and Ca
Slide 14: 2022 Full-Year Guidance
14 2022 Full-Year Guidance 2022 Full-Year Guidance Consolidated Net Sales $2.830 - $2.840 billion Adjusted-Diluted EPS $8.15 - $8.20 WST Q3 2022 Earnings
Slide 15: Execute. Innovate. Grow.
15WST Q3 2022 Earnings Execute. Innovate. Grow. Delivering Unique Value to Customers and Patients Global Operational Effectiveness Across the Network Accelerating Investments for the Future Driven by our collective purpose to improve patient lives
Slide 16: Q & A
16 Eric M. Green President and Chief Executive Officer, Chair of the Board Bernard J. Birkett Senior VP and Chief Financial and Operations Officer Quintin Lai VP, Corporate Strategy & Investor Relations Q & A WST Q3 2022 Earnings
Slide 17: Notes to Non-U.S. GAAP Financial Measures
17 Notes to Non-U.S. GAAP Financial Measures The Non-U.S. GAAP financial measures are incorporated into our discussion and analysis as management uses them in evaluating our results of operations and believes that this information provides users a valuable insight into our overall performance and fi
Slide 18: Reconciliation of Reported and Adjusted Operating Profit, Net Income and EPS
18 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported an
Slide 19: Reconciliation of Reported and Adjusted Operating Profit, Net Income and EPS
19 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported an
Slide 20: Reconciliation of Net Sales to Organic Net Sales
20 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales t
Slide 21: Reconciliation of Reported-Diluted EPS Guidance to Adjusted
21 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported-Di
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