West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q4 2022 Earnings Presentation
23 slides from West Pharmaceutical Services's earnings presentation, Feb 16, 2023
Slide 1: Fourth-Quarter 2022 and Full Year Results
Fourth-Quarter 2022 and Full Year Results Fourth Quarter Overall Net Sales Full Year Overall Net Sales $708.7M | 3.0% “I am pleased to report that we had a solid $2.887B | 2.0% finish to 2022 and that we enter 2023 with a Diluted Earnings Per Share: $1.36 Diluted Earnings Per Share: $7.73 strong ord
Slide 2: West Pharmaceutical Services, Inc. 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 Fourth-Quarter and Full Year Results 2022 Analyst Conference Call 9 a.m. Eastern Time | February 16, 2023
Slide 3: West Analyst Conference Call
A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com West Analyst To participate on the call by asking questions to Management, Conference Call please register in advance at: 9 a.m. Eastern Time https://register.vevent.com/register/BI1f11a
Slide 4: Safe Harbor Statement
Cautionary Statement Under the Private Non-U.S. GAAP Financial Measures Securities Litigation Reform Act of 1995 Certain financial measures included in these presentation materials, or which may be referred This presentation and any accompanying to in management’s discussion of the Company’s managem
Slide 5: "Keep everlastingly at it."
Over the course of our 100-year history the West name has come to mean so much to so many people. “Keep everlastingly at it.” Herman O. West West Founder April 14, 1923 The future innovations we’ll advance across the next 100 years will allow us to have a greater and more positive impact on the worl
Slide 6: Financial Highlights
Financial Highlights • Fourth quarter 2022 net sales of $708.7 million declined 3.0%; organic net sales growth was 2.6% • Fourth quarter 2022 reported-diluted EPS of $1.36 compared to $1.93 in the same period last year; adjusted-diluted EPS of $1.77 compared to $2.04 in the same period last year • F
Slide 7: 2022 Business Highlights
2022 Business Highlights Shipped close to Established landmark Expanded capacity 47 billion components collaboration with Corning in at 13 existing sites with 110 Pharmaceutical injectable drug major facility modifications touching billions of patients delivery and over 690 pieces of equipment Donat
Slide 8: Purpose. Driven.
Purpose. Driven. Creating a healthier environment through our sustainability efforts ESG Priorities for 2022 and beyond Climate Strategy R&D for the Environment Waste in Operational Processes Responsible Supply Chain NASDAQ recognition of West’s Corporate Responsibility Report featured in Times Squa
Slide 9: Execute. Innovate. Grow.
Execute. Innovate. Grow. Innovations for today’s complex and sensitive molecules We s t R e a d y P a c k ™ w i t h Daikyo CZ® 2.25mL insert F l u r o Te c ® 5 - 1 0 m L c a r t r i d g e C o r n i n g Va l o r ® R T U V i a l s needle syringe system plunger 9 WST Q4/FY 2022 Earnings
Slide 10: 2023 Full-Year Guidance
2023 Full-Year Guidance 2023 Full-Year Guidance Consolidated Net Sales $2.935 - $2.960 billion Adjusted-Diluted EPS $7.25 to $7.40 2023 New Share Repurchase Program • Authorized for up to $1 billion of share repurchase • No specified end date to this new repurchase program WST Q4/FY 2022 Earnings 10
Slide 11: Capacity Investments making progress across the Globe
Capacity Investments making progress across the Globe AMERICAS EXPANSION PROGRESS Kinston Williamsport & Jersey Shore ASIA PACIFIC EXPANSION PROGRESS Jurong, Singapore EUROPE EXPANSION PROGRESS Kovin Waterford Eschweiler 11 11 WST Q4/FY 2022 Earnings
Slide 12: Fourth-Quarter 2022 Summary Results
Fourth-Quarter 2022 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended December 31 2022 2021 Reported Net Sales $708.7 $730.8 Gross Profit Margin 37.0% 41.1% Reported Operating Profit $129.7 $184.0 Adjusted Operating Profit (1) $158.7 $189.2 Reported Operating Prof
Slide 13: Fourth-Quarter 2022 Organic Net Sales Growth
Fourth-Quarter 2022 Organic Net Sales Growth Overall Organic Net Sales Growth – 2.6% (Q4 2022) Proprietary Products Q4 2022 organic net sales growth of 1.8% with sales of high-value products flat year over year BIOLOGICS GENERICS PHARMA CONTRACT MANUFACTURING (Mid-Single Digit) Double-Digit High-Sin
Slide 14: Change in Consolidated Net Sales Fourth-quarter 2021 to 2022
Change in Consolidated Net Sales Fourth-quarter 2021 to 2022 ($ millions) WST Q4/FY 2022 Earnings 14
Slide 15: Gross Profit Update
Gross Profit Update ($ millions) Three Months Ended December 31, 2022 2021 Proprietary Products Gross Profit $243.0 $282.4 Proprietary Products Gross Profit Margin 41.6% 46.3% Contract-Manufactured Products Gross Profit $19.1 $20.1 Contract-Manufactured Products Gross Profit Margin 15.4% 16.5% Conso
Slide 16: Cash Flow and Balance Sheet Metrics
Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items Financial Condition YTD YTD December 31, December 31, Q4 2022 Q4 2021 2022 2021 Depreciation and Amortization $120.6 $122.3 Cash and Cash Equivalents $894.3 $762.6 Operating Cash Flow $724.0 $584.0 Debt $208.9 $253.0 Capital Expenditur
Slide 17: Committed to patient health today and into the future
Committed to patient health today and into the future Execute. Innovate. Grow. Delivering Unique Value to Customers and Patients Global Operational Effectiveness Across the Network Accelerating Investments for the Future WST Q4/FY 2022 Earnings 17
Slide 18: Q&A
Eric M. Green Bernard J. Birkett Quintin Lai President and Senior VP and Chief Financial VP, Corporate Strategy & Chief Executive Officer, and Operations Officer Investor Relations Chair of the Board Q&A 18
Slide 19: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP For the purpose of aiding the comparison of our The Non-U.S. GAAP financial measures are year-over-year results, we may refer to net sales and incorporated into our discussion and analysis as other financial results excluding the effects of management uses them in evaluating o
Slide 20: Notes to Non-U.S. GAAP Financial Measures
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 and A
Slide 21: Notes to Non-U.S. GAAP Financial Measures
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 and A
Slide 22: Notes to Non-U.S. GAAP Financial Measures
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 to O
Slide 23: Notes to Non-U.S. GAAP Financial Measures
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-Dilut
West Pharmaceutical Services — Q4 2022 Earnings Presentation on 6ix