West Pharmaceutical Services, Inc. · NYSE:WST

West Pharmaceutical Services — Q1 2017 Earnings Presentation

16 slides from West Pharmaceutical Services's earnings presentation, Apr 27, 2017

  1. Slide 1: First-Quarter 2017 Analyst Conference Call

    West Pharmaceutical Services, Inc. First-Quarter 2017 Analyst Conference Call 9 a.m. Eastern Time, April 27, 2017 Speakers: Eric M. Green President and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer  A webcast of today’s call can be accessed in the “In

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement 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 inc

  3. Slide 3: First-Quarter 2017 Highlights

    First-Quarter 2017 Highlights * Excluding the impact from translational changes in foreign exchange  Net sales of $387.7 million, representing 8.7% organic sales growth* ‒ Proprietary Products organic sales growth of 8.0% ‒ Contract-Manufactured Products organic sales growth of 11.4%  Expanded gro

  4. Slide 4: Organic Sales Growth

    Organic Sales Growth 4 | Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 FY 2017E Overall Organic Sales Growth 10.5% 8.2% 10.0% 7.7% 8.7% 7-9% Pharma MSD HSD MSD HSD DD HSD Generics DD DD HSD (MSD) (MSD) MSD Biologics DD HSD DD DD MSD DD Contract Manufacturing LSD MSD MSD DD DD HSD Abbreviations: LSD – low-

  5. Slide 5: Our Pipeline of New Products is Robust

    STERILIZED WASHED COATED ADMINISTERED CAMERA INSPECTED QUALITY BY DESIGN CONTAINMENT SELF INJECTION 5 | Increasing levels of customer intimacy Increasing value to West Next Generation of Self-Injection Delivery Devices Our Pipeline of New Products is Robust INJECTION MOLDING MULTI-COMPONENT ASSEMBLY

  6. Slide 6: 2017 Outlook

    2017 Outlook  Maintaining full-year 2017 net sales organic sales growth guidance in a range of 7% to 9%  2017 net sales range: $1.585 billion to $1.610 billion  Raising 2017 adjusted diluted EPS(1) guidance to a new range of $2.66 to $2.78 compared to a prior range of $2.45 to $2.57 (1) Please re

  7. Slide 7: First Quarter 2017 Summary Results

    7 | First Quarter 2017 Summary Results ($ millions, except earnings-per-share (EPS) data) (1) “Net sales at constant currency”, “adjusted operating profit”, and “adjusted diluted EPS” are Non-GAAP measures. See slides 13-16 and the discussion under the heading “Non-GAAP Financial Measures” in today’

  8. Slide 8: Change in Consolidated Sales

    $387.7 ($5.8) $23.7 $7.7 $362.1 2016 Volume & Mix Sales Price * Currency 2017 Change in Consolidated Sales First quarter 2016 to 2017 ($ millions) 8 | * Includes $4.9 million of inflationary increases in South America.

  9. Slide 9: Change in Gross Profit Margin %

    34.6% (1.3%) 1.0% 34.0% 2016 Efficiency Net Currency Sales Price Volume & Mix Plant OH & Other 2017 (0.3%) Change in Gross Profit Margin % First quarter 2016 to 2017 9 | 0.7% 0.5%

  10. Slide 10: Change in SG&A Costs

    Change in SG&A Costs First quarter 2016 to 2017 ($ millions) $61.6 $0.1 $0.4 $1.0 $3.2 $1.8 $58.1 2016 Comp and Benefits Other Incentive & Stock Comp Currency Translation US Pension 2017 16.0% of Sales 15.9% of Sales 10 |

  11. Slide 11: Cash Flow and Balance Sheet Metrics

    Cash Flow and Balance Sheet Metrics ($ millions) 11 | CASH FLOW ITEMS (UNAUDITED) (in millions) FINANCIAL CONDITION (UNAUDITED) (in millions) Three Months Ended March 31, 2017 2016 Depreciation and amortization $23.3 $22.3 Operating cash flow (1) $20.7 $3.0 Capital expenditures $37.5 $39.0 As of Mar

  12. Slide 12: 2017 Full-Year Guidance

    2017 Full-Year Guidance ($ millions, except EPS) (1) (2) (3) (1) Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.05 for 2017. Actual results will vary as a result of variability of exchange rates, among other items. (2) Assumes no non-recurring items i

  13. Slide 13: Notes to Non-GAAP Financial Measures

    Today’s press release, these presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally accepted accounting principles (GAAP) accepted in the U.S., and therefore are referred to as non-GAAP financial measures: 

  14. Slide 14: Notes to Non-GAAP Financial Measures

    Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 13-16), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 14 | Reconciliation of Reported and Adjusted

  15. Slide 15: Notes to Non-GAAP Financial Measures

    Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 13-16), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 15 | Reconciliation of Net Sales to Net Sale

  16. Slide 16: Notes to Non-GAAP Financial Measures

    Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 13-16), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 16 | Reconciliation of reported diluted EPS

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