Exhibit 99.1
William J. Federici
Vice President and Chief Financial Officer
Investor Relations Contact:
Michael A. Anderson
Vice President and Treasurer
mike.anderson@westpharma.com
UBS Global Specialty and Generic Pharmaceuticals Conference
London, England
28 May 2008
NYSE: WST
westpharma.com
Certain statements in the following slides and certain statements that may be made by management of the Company orally during this presentation
contain some 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 plans and assumptions. Such statements give our current expectations or
forecasts of future events; they do not relate strictly to historical or current facts. We have tried, wherever possible, to identify such statements by using
words such as “estimate,” “expect,” “intend,” “believe,” “plan,” “anticipate” and other words and terms of similar meaning in connection with any
discussion of future operating or financial performance or condition. We cannot guarantee that any forward-looking statement will be realized. If known
or unknown risks or uncertainties materialize, or if underlying assumptions are inaccurate, actual results could differ materially from past results and
those expressed or implied in any forward-looking statement. You should bear this in mind as you consider forward-looking statements. We undertake
no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
Important factors that may affect future results include the following: Sales demand and our ability to meet that demand; competition from other
providers in the Company’s businesses, including customers’ in-house operations, and from lower-cost producers in emerging markets, which can
impact unit volume, price and profitability; customers’ changing inventory requirements and manufacturing plans that alter existing orders or ordering
patterns for the products we supply to them; the timing, regulatory approval and commercial success of customer products that incorporate our
products, including relevant third-party reimbursement for prescription products, medical devices and components and medical procedures in which
those products are employed or consumed; average profitability, or mix, of products sold in any reporting period; maintaining or improving production
efficiencies and overhead absorption; the timeliness and effectiveness of capital investments, particularly capacity expansions, including the effects of
delays and cost increases associated with construction, availability and cost of capital goods, and necessary internal, governmental and customer
approvals of planned and completed projects, and the demand for goods to be produced in new facilities; dependence on third-party suppliers and
partners, including our Japanese partner Daikyo Seiko, Ltd.; the availability and cost of skilled employees required to meet increased production,
managerial, research and other needs of the Company, including professional employees and persons employed under collective bargaining
agreements; interruptions or weaknesses in our supply chain, which could cause delivery delays or restrict the availability of raw materials and key
bought-in components and finished products; raw-material price escalation, particularly petroleum-based raw materials, and our ability to pass raw-
material cost increases on to customers through price increases; claims associated with product quality, including product liability, and the related
costs of defending and obtaining insurance indemnifying the Company for the cost of such claims; the cost and progress of development, regulatory
approval and marketing of new products as a result of the Company’s research and development efforts; the defense of self-developed or in-licensed
intellectual property, including patents, trade and service marks and trade secrets; dependence of normal business operations on information and
communication systems and technologies provided, installed or operated by third parties, including costs and risks associated with planned upgrades
to existing business systems; the relative strength of the U.S. dollar in relation to other currencies, particularly the Euro, British Pound, and Japanese
Yen; changes in tax law or loss of beneficial tax incentives; the conclusion of unresolved tax positions consistent with currently expected outcomes; the
timely execution and realization of savings anticipated by the restructuring plan for certain operations and functions of The Tech Group, announced in
December 2007; and,
Other risks and uncertainties detailed in West’s filings with the Securities and Exchange Commission, including our Statement on Form 10-K filed with
the SEC on February 29, 2008. You should evaluate any statement in light of these important factors.
Safe Harbor Statement
Founded in 1923
Headquarters in Lionville, Pennsylvania (USA)
Global production, sales and distribution
Company Overview
Who We Are
World’s premier manufacturer
of components and systems
for injectable drug delivery
Closure systems and prefillable
syringe components
Components for disposable systems
Devices and device sub-assemblies
Safety and administration systems
2007 sales > $1.02 billion
Market cap $1.4 billion
Diverse, Stable Customer Base
Company-estimated market share: 70% in Pharma; 70% in Device; 95% in Biotech
Key Developments - 2007
Extended Daikyo sales and technology agreements to 2017
Raised $161.5 million by issuing 4% convertible junior
subordinated debentures
Repurchased one million shares
Accelerated global manufacturing infrastructure
investments
Received China land use application approval
Concluded four significant long-term customer agreements
Pfizer exited Exubera®
CMS changed reimbursement of ESA drugs
Tech Group announced restructuring
Exubera is a registered trademark of Pfizer, Inc.
Sales and Income from Continuing Operations
($ in millions)
Global
Revenue
Breakdown
Based on 2007 Sales
South America
5%
North America
49%
Europe
42%
Asia/Pacific
4%
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: US NDA and ANDA filing must
include reference to all packaging/components in contact with
the drug
1.
West Drug Master File (DMF) 1546 is confidential
2.
West DMF includes functionality data (multi-year studies)
3.
All primary package changes require new stability/functionality
studies for new filing
Engineering expertise in high-volume manufacturing and
assembly
Market Dynamics Support Continued Growth
Aging population creates an increasing number of patients with chronic
illnesses such as diabetes and cancer
Biologic drugs continue to grow
Biologic drugs represent the fastest growing segment of the injectable
pharma market (13% CAGR projected through 2010)*
(2006 Market: $56B*)
Injectables currently account for ~15% of the global drug delivery market^
Resurgence in vaccine research and development
China, India economic growth and growing demand for advanced
health care
Point-of-care shift: Hospital Specialty Clinic Home
Innovation initiatives address market opportunities
*Source: Datamonitor
^Source: Arrowhead Publishers
Future Growth Drivers
Increasing number of patients
with chronic illnesses
Many of these are treated with
biologic drugs
Biologic drug demand ultra clean
delivery systems
Safe, accurate dosing needs are
pushing the market toward
integrating the container/
closure system into the delivery
system
West migration to a systems
provider
Source: Datamonitor
Four Strategic Growth Platforms
Advanced Injection Systems
Injectable Container Solutions
Prefillable Syringe Systems
Safety & Administration Systems
Growth Platform 1
Injectable Container Solutions
West FluroTec®
Components
Seal - Stopper - Vial
Daikyo Crystal Zenith® Vials
Estimated Market Size – $1.5 BN
CAGR – 4%
Source: Company estimate for vial systems only
West Spectra™ Seals
Growth Platform 2
Safety and Administration Systems
Vial2Bag™
Mix2Vial™
MixJect™
Total Market – $1.5 BN
CAGR – 11%
Source: Greystone Associates and Company estimate
Project Orion
Growth Platform 3
Prefillable Syringe Systems
FluroTec® Plungers
Needle Shields, Tip Caps
Daikyo Crystal Zenith®
1mL LL Prefillable Syringe
Daikyo Crystal Zenith®
Staked Needle Syringe
Estimated Market Size – $900 MM
CAGR – 8%
Source: Company estimates
Convergence of Primary Containers
and Delivery Systems
Auto Injectors
with Cartridges
Traditional Injection
System
Components for
Pen System Applications
West Advanced
Injection System
Platform 2
Staked Needle Prefillable Syringe
Growth Platform 4
Advanced Injection Systems
Plunger
Primary Drug
Container
Lined
Seal
Platform 3
1mL Flanged Cartridge
Estimated Market Size - $210MM
CAGR – 8%
Source: Greystone Associates and Company estimates
Grow revenues and earnings despite reduced sales of certain
products
Fundamental growth will offset lost revenue associated with Exubera® , ESA
drugs, etc.
Generate Tech Group performance improvement
Effectively manage global capacity expansion
Continue investing for the future
Innovation programs
Begin to commercialize leading innovation programs
Geographic expansion plans: China, India
2008 Management Operating Priorities
Full Year Results
$1.83
$2.06
EPS from Continuing Operations - GAAP
$1.93
$2.37
EPS from Continuing Operations - Non-GAAP
$11.1
$16.1
Research & Development
$61.5
$71.2
Income from Continuing Operations
$147.8
$152.5
Selling, General & Administrative Exp.
29%
29%
Gross Margin
$913.3
$1,020.1
Net Sales
2006
2007
$ millions, except per share data
Full year 2007 EPS from continuing operations – Non-GAAP excludes $0.31 of discrete tax benefits, restructuring and
impairment charges and an unfavorable impact for Brazilian social security, excise and other tax compliance issues.
Full year 2006 EPS from continuing operations – Non-GAAP excludes a $0.12 charge related to the refinancing of senior
notes and a $0.02 favorable tax benefit related to the settlement of a prior year tax claim.
First Quarter Results
$0.77
$0.76
EPS from Continuing Operations - GAAP
$3.6
$5.4
Research & Development
$26.5
$26.2
Income from Continuing Operations
$0.77
$0.72
EPS from Continuing Operations - Non-GAAP
$37.0
$40.1
Selling, General & Administrative Exp.
31%
31%
Gross Margin
$257.6
$270.7
Net Sales
2007
2008
$ millions, except per share data
First quarter 2008 EPS from continuing operations – Non-GAAP excludes a $0.03 per share net gain on
a contract settlement related to a discontinued product line, a $0.02 per share impact of restructuring
charges and a $0.03 per share discrete tax benefit resulting from a decrease in tax rates in Singapore.
Capital Management
36.9%
38.6%
Net Debt to Total Invested Capital
$108.4
$93.6
Cash
$129.3
$22.8
Year-To-Date Capital Spending
44.6%
44.8%
Debt to Total Invested Capital
$490.9
$515.0
Total Capitalization
$395.1
$417.5
Total Debt
12/31/07
3/31/08
($ millions)
2008 Annual Guidance
Revenue estimate of $1.08 billion
Estimated capital spending of $140 million
Estimated adjusted (Non-GAAP) earnings per diluted share
is between $2.40 and $2.50:
Estimate reflects an exchange rate assumption of $1.50/€1.00
Reconciliation of GAAP and Non-GAAP 2008 estimates:
* No estimate is made of additional 2008 amounts for these items. Any amounts
recognized in subsequent periods will be excluded from adjusted earnings per share.
$2.40 - $2.50
Estimated adjusted earnings per diluted share (Non-GAAP)
(0.03)*
Discrete tax benefit recognized in first quarter 2008*
(0.03)*
Contract settlement gain recognized in first quarter 2008*
0.13
Estimated $7 million of Tech Group restructuring costs, 2008
$2.33 – $2.43
Estimated earnings per diluted share estimate (GAAP)
Summary
Fundamental business drivers remain unchanged
Opportunities for growth remain very attractive
West’s competitive advantages uniquely position the
Company to capitalize on growth drivers in key market
segments
Solid balance sheet
Seasoned, experienced management team
Incentives closely tied to growth in shareholder value
William J. Federici
Vice President and Chief Financial Officer
Investor Relations Contact:
Michael A. Anderson
Vice President and Treasurer
mike.anderson@westpharma.com
UBS Global Specialty and Generic Pharmaceuticals Conference
London, England
28 May 2008
NYSE: WST
westpharma.com
