West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — CJS New Ideas Conference 2007
24 slides from West Pharmaceutical Services's conference presentation, Jan 11, 2007
Slide 1: CJS New Ideas Conference
Donald E. Morel, Jr., Ph.D. Chairman & Chief Executive Officer William J. Federici Vice President & Chief Financial Officer CJS New Ideas Conference January 11, 2007 NYSE: WST www.westpharma.com
Slide 2: Forward-looking statements
Certain statements contained in this presentation and certain statements that may be made by management of the Company orally during this presentation are forward-looking statements that set forth anticipated results based on management’s plans and assumptions. Such statements give our current expec
Slide 3: Corporate Profile
Corporate Profile World's premier manufacturer of components and systems for injectable drug delivery Closure systems and prefilled syringe components Components for disposable systems Devices and device sub-assemblies Founded in 1923 HQ in Lionville, PA 2006 sales $900M (e) Market capitalization $1
Slide 4: Diverse Customer Base
Diverse Customer Base Company Estimated Market Share: 70% in Pharma; 70% in Device; 95% in Biotech
Slide 5: Global Presence
32 manufacturing sites 34 sales offices 7 technical centers 6,000 employees worldwide Global Presence
Slide 6: Key Company Developments
Key Company Developments FY 2001 - 2005 New management team Divestiture of non-core businesses Focus returned to injectable packaging and delivery Increased capital expenditures and capacity build in Europe Strategic acquisitions Strong revenue and profit growth FY 2006 Debt restructuring Integratio
Slide 7: Strong Sales Growth
$224 $107 (in millions) Strong Sales Growth Acquisitions Core Business
Slide 8: Segment Revenues
YTD, September 2006 Segment Revenues
Slide 9: Geographic Sales Mix
Geographic Sales Mix (YTD, September 2006)
Slide 10: Corporate Growth Strategy
Corporate Growth Strategy Pharmaceutical Systems Segment: Market segmentation Generate maximum value from key growth drivers New product innovation Lean manufacturing Geographic expansion Strategic acquisitions Tech Group Segment: Leverage West customer base to build market share in multi- material/
Slide 11: Market Dynamics Support West's Continued Growth
Market Dynamics Support West’s Continued Growth Increasing number of patients with chronic illnesses such as diabetes and cancer Increasing demand for biologics (2006 Market:$56BN) Biologics: fastest growing segment of the pharma market out to 2010 (12.2% CAGR) Injectables currently account of ~15%
Slide 12: Dosage Form Migration
Dosage Form Migration Reconstitution System Vial – Stopper – Seal Prefilled Syringe Ampoule Auto-injector
Slide 13: West's Competitive Advantage
West’s Competitive Advantage Unmatched experience/expertise: drug material interface Ability to source components from multiple locations globally Protected IP: West’s components and systems Regulatory barrier to entry: NDA and ANDA filing must include reference to all packaging/components in contac
Slide 14: Strategic Objectives: Biotechnology Leadership
FluroTec ® and Barrier Coatings Westar ® Processing Strategic Objectives Continue to maintain market leadership position in the biotechnology space Components for Pre-fillable Syringes
Slide 15: Strategic Objectives: Insulin/Diabetes Care
Strategic Objectives Expand position in the insulin/diabetes care segment Components for Pen System Applications Components for Traditional System Applications Devices
Slide 16: Strategic Objectives: Expand IP Position
Strategic Objectives Aggressively expand IP position via Innovation and selective acquisitions Anti-Counterfeiting Closures Reconstitution Systems CZ Resin Systems
Slide 17: Strategic Objectives: Manufacturing Footprint
Strategic Objectives Get the global manufacturing footprint issue right
Slide 18: Strategic Objectives
Strategic Objectives Continue to maintain market leadership position the biotechnology space Expand position in the insulin/diabetes care segment Aggressively expand IP position via Innovation initiative and selective acquisitions Get the “manufacturing footprint” issue right Create financial flexib
Slide 19: Year-to-date September Results
Year-to-date September Results ($ Millions) $1.00 $1.39 E.P.S. Continuing Operations - Reported $32.4 $46.8 Income from Continuing Operations $1.00 $1.50 E.P.S. Continuing Operations - Non GAAP $53.2 $80.0 Operating Profit $87.9 $112.0 SG&A 28% 29% Gross Margin $504.0 $681.4 Net Sales 2005 2006 2006
Slide 20: Capital Management
Capital Management 1.79 2.20 Debt to EBITDA Ratio $46.8 YTD Spending $90.0 Full Year Estimate Capital Expenditures: 37.1% 45.0% Debt to Total Capital $408.1 $344.0 Total Equity & Minority Interests $241.1 $281.0 Total Debt 9/30/06 12/31/05 ($M)
Slide 21: Operating Priorities: Focus on core business growth
Focus on core business growth Segmentation/therapeutic category management Continue market leadership expansion Manage through difficult pricing environment Optimize global capacity utilization Execute on European capacity expansion and China initiative Commercialize innovation programs Operating Pr
Slide 22: Summary
Summary Start 2007 following a record year West has a set of competitive advantages that uniquely position the company for future growth These competitive advantages capitalize on the primary growth drivers in key market segments Global, diverse customer base Global manufacturing capability Solid ba
Slide 23: Year End Conference Call
Year End Conference Call Tuesday February 20, 2007 9:00 AM Review and discussion of 2006 operating results Business outlook for 2007 Full year earnings guidance Call in details on website www.westpharma.com
Slide 24: Donald E. Morel, Jr., Ph.D.
Donald E. Morel, Jr., Ph.D. Chairman & Chief Executive Officer William J. Federici Vice President & Chief Financial Officer CJS New Ideas Conference January 11, 2007 NYSE: WST www.westpharma.com
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