Exhibit 99.2
Donald E. Morel, Jr., Ph.D.
Chairman and Chief Executive Officer
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 Life Sciences Conference
September 23, 2008
NYSE: WST
westpharma.com
All trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., unless noted otherwise.
Certain statements in the following slides and certain statements that may be made by management of the Company orally during this presentation
contain 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, but are not limited to, 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 the availability and scope of relevant public and private health insurance reimbursement for prescription products,
medical devices and components and medical procedures in which our customers’ 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, some of which are single-source suppliers of critical materials and
products, including our Japanese partner and affiliate 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 and energy 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; regional, national and local economic conditions; 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 inconsistent 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 annual report on Form 10-K for the
year 2007 and our periodic reports on Form 10-Q and Form 8-K. You should evaluate any statement in light of these important factors.
Forward Looking Statements
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 capitalization $1.5 billion
Diverse, Stable Customer Base
Company-estimated market share: 70% in Pharma; 70% in Device; 95% in Biotech
Key Developments - 2008
Concluded Exubera® Termination
Gain
Converting facility to alternative production needs
Tech Group Restructuring in Progress
Introduced Silicone-free Prefillable Syringe
Received Approval for China Plastics Facility
Construction in progress toward 2009 completion
Significant Capacity Expansion in Progress
Oil-based Raw Material Costs, Currency Volatility
ESA Drug Reimbursement and Labeling Changes
Exubera is a registered trademark of Pfizer, Inc.
Sales and Income from Continuing Operations
($ in millions)
Global
Revenue
Breakdown
Based on 2007 Sales
South America
5%
North America
49%
Europe
42%
Asia/Pacific
4%
Strong Global Brands
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: $56 billion *
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 drugs 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
Injectable Container Solutions
Safety & Administration Systems
Advanced Injection Systems
Prefillable Syringe Systems
Growth Platform 1
Injectable Container Solutions
West FluroTec®
Components
Seal - Stopper - Vial
Daikyo Crystal Zenith® Vials
Estimated Market Size – $1.5 billion
CAGR – 4%
Source: Company estimate for vial systems only
West Spectra™ Seals
Crystal Zenith is a registered trademark of Daikyo Seiko, Ltd.
FluroTec and Crystal Zenith technologies are licensed from Daikyo Seiko, Ltd.
Growth Platform 2
Safety and Administration Systems
Vial2Bag™
Mix2Vial®
MixJect®
Total Market – $1.5 billion
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 million
CAGR – 8%
Source: Company estimates
Crystal Zenith is a registered trademark of Daikyo Seiko, Ltd.
FluroTec and Crystal Zenith technologies are licensed from Daikyo Seiko, Ltd.
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 - $210 million
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
Management Operating Priorities
Full Year Results
$1.83
$2.06
dEPS from Continuing Operations – GAAP
$1.93
$2.37
dEPS 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 diluted earnings per share (“dEPS”) data
2007 dEPS from Continuing Operations – Non-GAAP excludes $0.31 per diluted share for the net effects of discrete tax benefits, restructuring and
impairment charges and an unfavorable impact for Brazilian social security, excise and other tax compliance issues.
2006 dEPS 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.
Second Quarter Results
$0.74
$0.82
dEPS from Continuing Operations - GAAP
$3.8
$4.9
Research & Development
$26.5
$28.7
Income from Continuing Operations
$0.68
$0.73
dEPS from Continuing Operations - Non-GAAP
$38.2
$40.9
Selling, General & Administrative Exp.
29%
30%
Gross Margin
$263.7
$279.3
Net Sales
2007
2008
$ millions, except diluted earnings per share (“dEPS”) data
Second quarter 2008 dEPS from Continuing Operations – Non-GAAP excludes an $0.11 per share net gain on a contract settlement related to a
discontinued product line, and $0.02 per share of restructuring charges
Second quarter 2007 dEPS from Continuing Operations – Non-GAAP excludes $0.06 per share of discrete tax benefits that related to prior year periods.
Capital Management
36.9%
34.9%
Net Debt to Total Invested Capital
$ 108.4
$ 102.3
Cash
$ 129.4
$ 53.2
Year-To-Date Capital Spending
44.6%
41.9%
Debt to Total Invested Capital
$ 886.0
$ 950.0
Total Capitalization
$ 395.1
$ 398.2
Total Debt
12/31/07
6/30/08
($ millions)
Summary
Fundamental business drivers remain unchanged
West’s competitive advantages uniquely position
the Company to capitalize on growth drivers in
key market segments
Existing business continues to grow
New products expected to enhance growth
Solid balance sheet
Seasoned, experienced management team
Incentives closely tied to growth in shareholder value
Donald E. Morel, Jr., Ph.D.
Chairman and Chief Executive Officer
William J. Federici
Vice President and Chief Financial Officer
Investor Relations Contact:
Michael A. Anderson
Vice President and Treasurer
mike.anderson@westpharma.com
NYSE: WST
westpharma.com
