8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported) – October 26, 2017

WEST PHARMACEUTICAL SERVICES, INC.

(Exact name of registrant as specified in its charter)

Pennsylvania	1-8036	23-1210010
(State or other jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
530 Herman O. West Drive, Exton, PA		19341-0645
(Address of principal executive offices)		(Zip Code)

 Registrant’s telephone number, including area code: 610-594-2900

Not Applicable

(Former name or address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On October 26, 2017, West Pharmaceutical Services, Inc. (the “Company”) issued a press release announcing its third-quarter 2017 financial results. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

The information set forth in “Item 2.02 Results of Operations and Financial Condition,” including the exhibit referred to therein, is incorporated herein by reference.

A copy of the Company’s presentation materials used during the call will be available through the Investors link at the Company’s website, http://www.westpharma.com, and is also attached hereto as Exhibit 99.2 and incorporated herein by reference.

The information in this report (including the exhibits attached hereto) is being furnished pursuant to Item 2.02 and Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor will it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific referencing in such filing.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibit No.	Description
	99.1	West Pharmaceutical Services, Inc. Press Release, dated October 26, 2017.
	99.2	West Pharmaceutical Services, Inc. Presentation, dated October 26, 2017.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	WEST PHARMACEUTICAL SERVICES, INC.
	/s/ William J. Federici
	William J. Federici
	Senior Vice President and Chief Financial Officer
October 26, 2017

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	West Pharmaceutical Services, Inc. Press Release, dated October 26, 2017.
99.2	West Pharmaceutical Services, Inc. Presentation, dated October 26, 2017.

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EX-99.1

Exhibit 99.1

Investor Contact:

Quintin Lai

Vice President, Investor Relations

(610) 594-3318

West Announces Third-Quarter 2017 Results

- Conference Call Scheduled for 9 a.m. EDT Today-

Exton, PA, October 26, 2017 – West Pharmaceutical Services, Inc. (NYSE: WST) today announced its financial results for the third quarter of 2017, updated financial guidance for the full-year 2017, introduced sales growth outlook for full-year 2018 and reaffirmed long-term financial targets.

Third-Quarter 2017 Highlights

• Reported net sales of $398.2 million grew 5.7% over the prior-year quarter. Net sales at constant currency (organic) grew by 3.7%.

• Third-quarter 2017 reported-diluted EPS was $0.67, compared to reported-diluted EPS of $0.50 and adjusted-diluted EPS of $0.53, both in the prior-year quarter. There were no adjustments made in the third-quarter 2017.

• Hurricanes in Puerto Rico had a negative impact on third-quarter 2017 sales of approximately $2 million. At current low levels of operations at both our Puerto Rican contract manufacturing facility and Biologics customers located in the area, we estimate fourth-quarter 2017 sales to be adversely impacted by approximately $5 million.

• Raising full-year 2017 sales and adjusted-diluted EPS guidance. Full-year 2017 sales guidance is expected to be in a range between $1.595 billion and $1.605 billion, compared to the prior guidance range between $1.585 billion and $1.600 billion. This includes hurricane-related impacts in Puerto Rico. Full-year 2017 adjusted-diluted EPS guidance is expected to be in a range between $2.74 and $2.79, compared to the prior guidance range between $2.66 and $2.73. This includes an estimated fourth-quarter 2017 adjusted-diluted EPS negative impact of $0.03 from hurricane-related issues in Puerto Rico. Both current and prior guidance ranges include the favorable impact from tax-related benefits associated with share-based payment transactions that have been recognized during the first nine months of 2017.

• Providing long-term financial objectives consistent with prior plans.

“Adjusted-diluted EPS” and “net sales at constant currency” are Non-GAAP measurements. See discussion under the heading “Non-GAAP Financial Measures” in this release.

Executive Commentary

“Our third-quarter performance was in line with our expectations,” said Eric M. Green, President and Chief Executive Officer. “We are on track to finish 2017 with strong organic sales growth led by high-value product growth in the Biologics and Generics market units.”

“Looking to the future, we continue to see positive fundamentals in the markets we serve. We see unit volume growth from existing injectable drugs, future new drug approvals, and new generics and biosimilars that are entering the market. There is continued growth potential for high-value product (HVP) adoption in all our market units - Pharma, Generics and Biologics - as customers strive for higher quality and increasingly adopt zero-defect strategic imperatives. We have successfully focused our Contract-Manufactured Product segment on serving injectable medicines and diagnostic customers, and our consumer goods business continues to become a smaller part of that segment’s sales.”

Mr. Green concluded, “I am proud of our employees and their dedication to safety, quality and innovation. All of us at West are aware of the critical importance that our products play in the integrated containment and delivery of injectable medicines. I am especially proud of their response during this severe hurricane season. With a strong global team, focused on helping our customers, we are well-positioned for the future.”

Third-Quarter 2017 Financial Results (comparisons to prior-year period)

Reported net sales were $398.2 million, compared to $376.7 million. Reported net sales growth was 5.7%. On a constant-currency basis, organic sales growth was 3.7%.

Proprietary Products segment reported net sales were $308.9 million, compared to $298.1 million. Reported net sales growth was 3.6%. Organic sales growth was 1.5%, led by low-single digit growth in the Biologics and Generics market units. Biologics sales growth was lower than anticipated due to customers in Puerto Rico unable to receive shipments. Excluding this impact, Biologics organic sales growth would have been in the mid-single digit range. Generics market unit organic sales growth was positive after three consecutive quarters of declines. Pharma market unit sales declined low-single digits after a strong first-half 2017 performance.

Committed orders in the Proprietary Products segment at September 30, 2017, were $375 million, a decrease of 6% at constant currency compared to September 30, 2016.

Contract-Manufactured Products segment reported net sales were $89.3 million, compared to $79.0 million. Reported net sales growth was 13.1%, and organic sales growth was 11.5%.

Gross profit margin was 31.4%, a decrease of 70 basis points. Proprietary Products segment gross profit margin was 35.8%, a decrease of 60 basis points due to lower sales growth of high-value products, increased labor and overhead costs, partially offset by production efficiencies. Contract-Manufactured Products segment gross profit margin was 16.3%, an increase of 30 basis points due to a favorable mix of products sold and higher sales volume, partially offset by increased labor and overhead costs.

Third-quarter 2017 reported operating profit was $63.9 million, which represented an operating profit margin of 16.1%, an increase of 250 basis points from the prior-year quarter. The major driver of margin expansion was Proprietary Products other (income) expense, as the Company recognized $9.1 million of income for reimbursed costs associated with a technology that was subsequently licensed to a third party.

Income tax expense in the quarter was $14.0 million, which represented an effective tax rate of 22.3%. The effective tax rate reflects the impact of a tax benefit of $4.8 million associated with tax benefits from the adoption of guidance issued by the FASB regarding share-based payment transactions. Excluding the impact, the effective tax rate would have been approximately 30%.

Full-Year 2017 Financial Guidance

The Company is maintaining its full-year 2017 constant-currency (organic) sales growth guidance of approximately 6%.

West’s expected full-year 2017 net sales, margin and EPS guidance are as follows:

(in millions, except EPS)	2017 Updated Guidance	Prior Guidance
Consolidated net sales	$1,595 to $1,605	$1,585 to $1,600
Consolidated gross profit margin (% of net sales)	32.6% to 32.8%	32.7% to 33.3%
Proprietary Products net sales	$1,250 to $1,255	$1,240 to $1,250
Contract-Manufactured Products net sales	$345 to $350	$345 to $350
Full-Year adjusted-diluted EPS*	$2.74 to $2.79	$2.66 to $2.73

*Includes the reported-diluted EPS impact of $0.40 for the first nine months of 2017 tax-benefit associated with the previously-discussed adoption of FASB-issued guidance. Also includes an estimated adverse impact due to severe-weather issues in Puerto Rico of approximately $5 million of net sales (and impact to consolidated gross margins) and $0.03 of adjusted-diluted EPS.

The principal currency assumption used in preparing these estimates is the translation of the euro at $1.18 for the remainder of 2017, compared to a prior assumption of $1.14 per euro.

Excluding the impact from tax benefits associated with the previously-discussed adoption of FASB-issued guidance, the Company expects that its annual effective tax rate will be approximately 30%. The Company does not plan on forecasting future benefits as they could vary quarter to quarter with the time and size of stock option exercises. Instead, the Company will include the impacts with each reported period. As a point of reference, the Company would have had $0.8 million of net income benefit in the third quarter of 2016 and would have had $18 million for the full-year 2016, resulting in an EPS benefit of $0.01 in the third-quarter 2016 and $0.24 for the full-year 2016.

The Company estimates its 2017 capital spending to be approximately $150 million.

2018 Sales Outlook and Long-Term Financial Construct

The Company expects 2018 constant-currency, organic sales growth to be in the range of 6% to 8% as a result of market volume growth and continued HVP conversions. Biologics and Generics market units are expected to return to more typical levels, with growth moderation in Contract-Manufactured Products following a strong 2017 and continued portfolio management of the consumer goods business.

The Company’s long-term financial construct remains consistent with prior plans, with 6% to 8% annual constant-currency, organic sales growth. We expect incremental sales growth from proprietary delivery systems such as SmartDose^® and Crystal Zenith^®, as their relative sales base increases over time. Favorable product mix shift, coupled with operational excellence and optimization programs, are expected to expand operating profit margins by approximately 100 basis points per year. Annual capital spending is expected to remain in a range of between $150 million and $175 million.

The Company updates and shares its high-level, long-term objectives in order to help investors, employees and other stakeholders better understand the strategic value of current and planned capital and research and development investments. As such, the revenue and profitability goals are not intended to predict or estimate actual results in any future period, but to indicate management’s view of what it believes to be achievable in that time frame.

Third-Quarter Conference Call

The Company will host a conference call to discuss the results and business expectations at 9:00 a.m. Eastern Time today. To participate on the call please dial 877-930-8295 (U.S.) or 253-336-8738 (International). The conference ID is 94093362.

A live broadcast of the conference call will be available at the Company’s website, www.westpharma.com, in the “Investors” section. Management will refer to a slide presentation during the call, which will be made available on the day of the call. To view the presentation, select “Presentations” in the “Investors” section of the Company’s website.

An online archive of the broadcast will be available at the website three hours after the live call and will be available through Thursday, November 2, 2017, by dialing 855-859-2056 (U.S.) or 404-537-3406 (International) and entering conference ID 94093362.

Forward-Looking Statements

Certain forward-looking statements are included in this release. They use such words as “expected,” “reflects,” “continue,” “raising,” “see,” “increase,” “plan,” “will,” “estimated,” “remain,” “may,” “believes,” “expect,” “include,” “estimate,” and other similar terminology. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this release. There is no certainty that actual results will be achieved in-line with current expectations. These forward-looking statements involve a number of risks and uncertainties. The following are some of the factors that could cause our actual results to differ

materially from those expressed in or underlying our forward-looking statements: customers’ changing inventory requirements and manufacturing plans; customer decisions to move forward with our new products and product categories; average profitability, or mix, of the products we sell; dependence on third-party suppliers and partners; interruptions or weaknesses in our supply chain; increased raw material costs; fluctuations in currency exchange; and the ability to meet development milestones with key customers. This list of important factors is not all inclusive. For a description of certain additional factors that could cause the Company's future results to differ from those expressed in any such forward-looking statements, see Item 1A, entitled “Risk Factors,” in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

This press release and the preceding discussion of the Company’s results, financial guidance, and the accompanying financial tables use the following financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP), and therefore are referred to as Non-GAAP financial measures:

• Net sales at constant currency (organic sales growth)

• Adjusted operating profit

• Adjusted operating profit margin

• Adjusted income tax expense

• Adjusted net income

• Adjusted diluted EPS

• Net debt

• Total invested capital

• Net debt-to-total invested capital

The Company believes that these Non-GAAP measures of financial results provide useful information to management and investors regarding business trends, results of operations, and the Company’s overall performance and financial position. The Company’s executive management team uses these financial measures to evaluate the performance of the Company in terms of profitability and efficiency, to compare operating results to prior periods, to evaluate changes in the operating results of each segment, and to measure and allocate financial resources to its segments. The Company believes that the use of these Non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing its financial measures with other companies.

The Company’s executive management does not consider such Non-GAAP measures in isolation or as an alternative to such measures determined in accordance with GAAP. The principal limitation of these financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded. In order to compensate for these limitations, Non-GAAP financial measures are presented in connection with GAAP results.

The Company urges investors and potential investors to review the reconciliations of its Non-GAAP financial measures to the comparable GAAP financial measures, and not to rely on any single financial measure to evaluate the Company’s business.

Net sales at constant currency translates the current-period reported sales of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in effect during the comparable prior-year period. In calculating adjusted operating profit, adjusted operating profit margin, adjusted income tax expense, adjusted net income and adjusted diluted EPS, the Company excludes the impact of items that are not considered representative of ongoing operations. Such items may include restructuring and related costs, certain asset impairments, other specifically-identified gains or losses, and discrete income tax items. A reconciliation of these adjusted Non-GAAP measures to the comparable GAAP financial measures is included in the accompanying tables.

The following is a description of the items excluded from adjusted operating profit, adjusted income tax expense, adjusted net income, and adjusted diluted EPS for the three and nine months presented in the accompanying tables:

Venezuela deconsolidation - During the nine months ended September 30, 2017, as a result of the continued deterioration of conditions in Venezuela, as well as its continued reduced access to U.S. Dollar settlement controlled by the Venezuelan government, the Company recorded a charge of $11.1 million related to the deconsolidation of its Venezuelan subsidiary, following its determination that it no longer met the GAAP criteria for control of that subsidiary. As of April 1, 2017, the Company’s consolidated financial statements exclude the results of its Venezuelan subsidiary.

Restructuring and related charges - During the three months ended September 30, 2016, the Company recorded $2.3 million in restructuring and related charges, consisting of $1.4 million for severance charges and $0.9 million for a non-cash asset write-down associated with the discontinued use of certain equipment. During the nine months ended September 30, 2016, the Company incurred $23.7 million in restructuring and related charges, consisting of $7.8 million for severance charges and $15.9 million for non-cash asset write-downs associated with the discontinued use of certain trademarks and certain equipment.

Venezuela currency devaluation - During the nine months ended September 30, 2016, the Company recorded a charge of $2.7 million related to the devaluation of the Venezuelan Bolivar from the previously-prevailing official exchange rate of 6.3 Bolivars to USD to 10.0 Bolivars to USD.

Discrete tax item- During the three and nine months ended September 30, 2016, the Company recorded a discrete tax charge of $0.3 million resulting from the impact of a change in the enacted tax rate in the United Kingdom on its previously-recorded deferred tax asset balances.

WEST PHARMACEUTICAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in millions, except per share data)
	Three Months Ended September 30,									Nine Months Ended September 30,
	2017					2016				2017				2016
Net sales	$	398.2		100	%	$	376.7	100	%	$	1,183.5	100	%	$	1,126.8	100	%
Cost of goods and services sold	273.2			69		255.6		68		799.4		68		749.1		66
Gross profit	125.0			31		121.1		32		384.1		32		377.7		34
Research and development	9.1			2		9.0		2		29.4		2		27.2		2
Selling, general and administrative expenses	61.5			15		58.3		16		183.7		16		178.9		16
Other (income) expense, net	(9.5		)	(2	)	2.5		—		3.1		—		29.1		3
Operating profit	63.9			16		51.3		14		167.9		14		142.5		13
Interest expense, net	1.0			—		2.0		1		4.8		—		5.9		1
Income before income taxes	62.9			16		49.3		13		163.1		14		136.6		12
Income tax expense	14.0			4		14.4		4		19.1		2		38.3		3
Equity in net income of affiliated companies	2.1			1		2.7		1		6.7		1		6.2		—
Net income	$	51.0		13	%	$	37.6	10	%	$	150.7	13	%	$	104.5	9	%
Net income per share:
Basic	$	0.69				$	0.51			$	2.04			$	1.43
Diluted	$	0.67				$	0.50			$	1.99			$	1.40
Average common shares outstanding	74.2					73.3				73.8				73.0
Average shares assuming dilution	75.9					75.0				75.8				74.7

WEST PHARMACEUTICAL SERVICES REPORTING SEGMENT INFORMATION (UNAUDITED) (in millions)
	Three Months Ended September 30,						Nine Months Ended September 30,
Net Sales:	2017			2016			2017			2016
Proprietary Products	$	308.9		$	298.1		$	930.5		$	899.9
Contract-Manufactured Products	89.3			79.0			253.3			227.8
Eliminations	—			(0.4		)	(0.3		)	(0.9		)
Consolidated Total	$	398.2		$	376.7		$	1,183.5		$	1,126.8
Operating Profit (Loss):
Proprietary Products	$	67.0		$	57.5		$	188.2		$	185.6
Contract-Manufactured Products	10.8			8.9			30.1			25.6
U.S. pension expense	(0.7		)	(2.2		)	(3.2		)	(6.6		)
Stock-based compensation expense	(4.6		)	(4.6		)	(13.6		)	(14.1		)
General corporate costs	(8.6		)	(6.0		)	(22.5		)	(21.6		)
Adjusted Operating Profit	$	63.9		$	53.6		$	179.0		$	168.9
Adjusted Operating Profit Margin	16.1		%	14.2		%	15.1		%	15.0		%
Venezuela deconsolidation	—			—			(11.1		)	—
Venezuela currency devaluation	—			—			—			(2.7		)
Restructuring and related charges	—			(2.3		)	—			(23.7		)
Reported Operating Profit	$	63.9		$	51.3		$	167.9		$	142.5
Reported Operating Profit Margin	16.1		%	13.6		%	14.2		%	12.6		%

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

Please refer to “Non-GAAP Financial Measures” for more information

(in millions, except per share data)

Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS

Nine months ended September 30, 2017	Operating profit		Income tax expense		Net income		Diluted EPS
Reported (GAAP)	$	167.9	$	19.1	$	150.7	$	1.99
Venezuela deconsolidation	11.1		—		11.1		0.15
Adjusted (Non-GAAP)	$	179.0	$	19.1	$	161.8	$	2.14

Three months ended September 30, 2016	Operating profit		Income tax expense			Net income		Diluted EPS
Reported (GAAP)	$	51.3	$	14.4		$	37.6	$	0.50
Restructuring and related charges	2.3		0.7			1.6		0.02
Discrete tax item	—		(0.3		)	0.3		0.01
Adjusted (Non-GAAP)	$	53.6	$	14.8		$	39.5	$	0.53

Nine months ended September 30, 2016	Operating profit		Income tax expense			Net income		Diluted EPS
Reported (GAAP)	$	142.5	$	38.3		$	104.5	$	1.40
Restructuring and related charges	23.7		8.1			15.6		0.21
Venezuela currency devaluation	2.7		—			2.7		0.03
Discrete tax item	—		(0.3		)	0.3		0.01
Adjusted (Non-GAAP)	$	168.9	$	46.1		$	123.1	$	1.65

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

Please refer to “Non-GAAP Financial Measures” for more information

(in millions, except per share data)

Reconciliation of Net Sales to Net Sales at Constant Currency⁽¹⁾ 

Three months ended September 30, 2017	Proprietary			CM			Eliminations		Total
Reported net sales (GAAP)	$	308.9		$	89.3		$	—	$	398.2
Effect of changes in currency translation rates	(6.4		)	(1.3		)	—		(7.7		)
Net sales at constant currency (Non-GAAP)(1)	$	302.5		$	88.0		$	—	$	390.5

Nine months ended September 30, 2017	Proprietary		CM			Eliminations			Total
Reported net sales (GAAP)	$	930.5	$	253.3		$	(0.3	)	$	1,183.5
Effect of changes in currency translation rates	3.9		(0.2		)	—			3.7
Net sales at constant currency (Non-GAAP)(1)	$	934.4	$	253.1		$	(0.3	)	$	1,187.2

⁽¹⁾Net sales at constant currency translates the current-period reported sales of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in effect during the comparable prior-year period.

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

Please refer to “Non-GAAP Financial Measures” for more information

(in millions, except per share data)

Reconciliation of Reported Diluted EPS Guidance to Adjusted Diluted EPS Guidance

	Full Year 2017 Guidance(2) (3)
Reported diluted EPS guidance	$2.59 to $2.64
Venezuela deconsolidation	0.15
Adjusted diluted EPS guidance	$2.74 to $2.79

⁽²⁾See “Full-Year 2017 Financial Guidance” and “Non-GAAP Financial Measures” in today’s press release for additional information regarding adjusted diluted EPS.

⁽³⁾Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.18 for the remainder of 2017. Actual results will vary as a result of exchange rate variability.

WEST PHARMACEUTICAL SERVICES CASH FLOW ITEMS (UNAUDITED) (in millions)
	Nine Months Ended June 30,
	2017		2016
Depreciation and amortization	$	71.8	$	67.9
Operating cash flow	$	181.8	$	147.6
Capital expenditures	$	101.3	$	122.7

WEST PHARMACEUTICAL SERVICES FINANCIAL CONDITION (UNAUDITED) (in millions)
	As of September 30, 2017		As of December 31, 2016
Cash and cash equivalents	$	269.3	$	203.0
Debt	$	229.8	$	228.6
Equity	$	1,316.9	$	1,117.5
Net debt-to-total invested capital(4)	N/A		2.2		%
Working capital	$	476.9	$	400.9

⁽⁴⁾ Net debt and total invested capital are Non-GAAP measures. Net debt is determined by reducing total debt by the amount of cash and cash equivalents, and for purpose of measuring net debt to invested capital, total invested capital is the sum of net debt and shareholders’ equity. Please refer to “Non-GAAP Financial Measures” in this release for additional information regarding those measures.

Trademark Notices

Trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., in the United States and other jurisdictions, unless noted otherwise.

Daikyo^® Crystal Zenith^® and Daikyo^® are trademarks of Daikyo Seiko, Ltd. Daikyo Crystal Zenith^® technologies are licensed from Daikyo Seiko, Ltd.

EX-99.2

West Pharmaceutical Services, Inc. Third-Quarter 2017 Analyst Conference Call 9 a.m. Eastern Time, October 26, 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 “Investors” section of the Company’s website: www.westpharma.com  To participate on the call, please dial: − 877-930-8295 (U.S.) − 253-336-8738 (International) − The conference ID is 94093362  An online archive of the broadcast will be available at the site three hours after the live call and will be available through Thursday, November 2, 2017, by dialing: − 855-859-2056 (U.S.) − 404-537-3406 (International) − The conference ID is 94093362 These presentation materials are intended to accompany today’s press release announcing the Company’s results for the third-quarter 2017 and management’s discussion of those results during today’s conference call.

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 include, but are not limited to, statements about product development and operational performance. Each of these statements is based on preliminary information, and actual results could differ from any preliminary estimates. We caution investors that the risk factors listed under “Cautionary Statement” in our press releases, as well as those set forth under the caption "Risk Factors" in our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission and as revised or supplemented by our quarterly reports on Form 10-Q, could cause our actual results to differ materially from those estimated or predicted in the forward-looking statements. You should evaluate any statement in light of these important factors. Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. Non-U.S. GAAP Financial Measures Certain financial measures included in these presentation materials, or which may be referred to in management’s discussion of the Company’s results and outlook, have not been calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and, therefore, are referred to as non-GAAP financial measures. Non-GAAP financial measures should not be considered in isolation or as an alternative to such measures determined in accordance with GAAP. Please refer to “Reconciliation of Non-GAAP Measures” at the end of these materials for more information. Trademarks Registered trademarks used in this report are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless noted otherwise. Daikyo Crystal Zenith® is a registered trademark of, and is licensed from, Daikyo Seiko, Ltd. 2 |

Third-Quarter 2017 Results (1) Excluding the impact from translational changes in foreign exchange. (2) Includes $9.1 million of income for reimbursed costs associated with a technology that was subsequently licensed to a third party.  Net sales of $398.2 million, representing 3.7% organic sales growth(1) ‒ Proprietary Products organic sales growth of 1.5% ‒ Contract-Manufactured Products organic sales growth of 11.5%  Hurricane-related impact in Puerto Rico reduced net sales by approximately $2 million  Reported-diluted EPS of $0.67, a 26% increase over prior-year adjusted diluted EPS. Excluding a $0.06 favorable EPS impact from tax benefits associated with stock-based compensation expense, Q3 2017 EPS would have grown by 15%. 3 |

Organic Sales Growth 4 | Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Updated FY 2017E Guidance Overall Organic Sales Growth 10.0% 7.7% 8.7% 3.9% 3.7% approx. 6% Pharma MSD HSD DD MSD (LSD) MSD Generics HSD (MSD) (MSD) (MSD) LSD FLAT Biologics DD DD MSD MSD LSD HSD Contract Manufacturing MSD DD DD DD DD HSD Abbreviations: LSD – low-single digit; MSD – mid-single digit; HSD – high-single digit; DD – double digit

Commercial Highlights  Double-digit sales growth from Envision® and NovaPure®  AccelTRA® program meets unique market needs  West’s ID Adapter addresses intradermal delivery challenges  Wearables portfolio continues to grow 5 | ID Adapter

2017 Revised Outlook  2017 net sales range: $1.595 billion to $1.605 billion(1), compared to a prior range of $1.585 billion to $1.600 billion  Full-year 2017 net sales organic sales growth guidance of approximately 6%  2017 adjusted-diluted EPS(2) guidance: $2.74 to $2.79(1), compared to a prior range of $2.66 to $2.73 (1) Assumes hurricane-related adverse impact in Q4 2017 of $5 million to net sales and $0.03 to adjusted-diluted EPS (2) Please refer to “Notes to Non-GAAP Financial Measures” on slides 14-17, and “Non-GAAP Financial Measures” in today’s press release, for additional information regarding adjusted diluted EPS. 6 |

2018 Preliminary Sales Outlook and Long-Term Financial Construct  2018 organic sales growth is expected to be in a range of 6% to 8%  Long-term financial construct: ‒ Components and contract manufacturing business to grow in a 6% to 8% range ‒ Proprietary delivery systems to generate incremental sales growth with increased commercial adoption ‒ Favorable product mix shift, pricing and operational excellence and optimization programs to expand operating profit margins by approximately 100 basis points per year ‒ Annual capital expenditures to be in a range of between $150 million to $175 million 7 |

8 | Third 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 14-17 and the discussion under the heading “Non-GAAP Financial Measures” in today’s press release for an explanation and reconciliation of these items. Except as noted, statements in these slides concerning comparative net sales are measured on a constant currency basis. Three Months Ended September 30, 2017 2016 Reported Net Sales $398.2 $376.7 Net Sales at Constant Currency(1) $390.5 $376.7 Gross Profit Margin 31.4% 32.1% Reported Operating Profit $63.9 $51.3 Adjusted Operating Profit(1) $63.9 $53.6 Diluted EPS $0.67 $0.50 Adjusted Diluted EPS(1) $0.67 $0.53

$398.2 $11.1 $7.7 $2.7 $376.7 2016 Volume & Mix Currency Sales Price 2017 Change in Consolidated Net Sales Third quarter 2016 to 2017 ($ millions) 9 |

31.4% (0.1%) (0.1%) (0.2%) (2.3%) 1.5% 0.5% 32.1% 2016 Efficiency Sales Price Volume & Mix Net Currency Raw Material Plant OH & Other 2017 Change in Gross Profit Margin % Third quarter 2016 to 2017 10 |

Change in SG&A Costs Third quarter 2016 to 2017 ($ millions) $61.5 $1.5 $1.9 $1.7 $0.7 $0.4 $58.3 2016 Comp and Benefits Outside Services Currency Translation Other US Pension 2017 15.5% of Net Sales 15.4% of Net Sales 11 |

Cash Flow and Balance Sheet Metrics ($ millions) 12 | CASH FLOW ITEMS (UNAUDITED) (in millions) FINANCIAL CONDITION (UNAUDITED) (in millions) Nine Months Ended September 30, 2017 2016 Depreciation and amortization $71.8 $67.9 Operating cash flow (1) $181.8 $147.6 Capital expenditures $101.3 $122.7 As of September 30, 2017 As of December 31, 2016 Cash and cash equivalents $269.3 $203.0 Debt $229.8 $228.6 Equity $1,316.9 $1,117.5 Net debt-to-total invested capital(2) N/A 2.2% Working capital $476.9 $400.9 (1) 2017 includes a tax benefit of $30.3 million associated with the adoption of guidance issued by the Financial Accounting Standards Board regarding share-based payment transactions. (2) Net debt and total invested capital are Non-GAAP measures. Net debt is determined by reducing total debt by the amount of cash and cash equivalents, and for purpose of measuring net debt-to-invested capital, total invested capital is the sum of net debt and shareholders’ equity. Please refer to “Non-GAAP Financial Measures” in this release for additional information regarding those measures.

2017 Full-Year Guidance ($ millions, except EPS) (1) (2) (3) (1) Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.18 for the remainder of 2017. Actual results will vary as a result of variability of exchange rates, among other items. (2) Includes favorable impact from tax-related benefits associated with share-based payment transactions through the first nine months of 2017 of $30.3 million ($0.40 per diluted share). Also includes an estimated adverse Q4 2017 impact due to hurricane-related issues in Puerto Rico of approximately $5.0 million of net sales ($0.03 per diluted share). (3) Please refer to slide 17 for a reconciliation regarding adjusted-diluted EPS. 2017 Updated Guidance Prior Guidance Proprietary Products net sales $1,250 to $1,255 $1,240 to $1,250 Contract-Manufactured Products net sales $345 to $350 $345 to $350 Consolidated net sales $1,595 to $1,605 $1,585 to $1,600 Consolidated gross profit margin (% of net sales) 32.6% to 32.8% 32.7% to 33.3% Full-year adjusted-diluted EPS (1) (2) (3) $2.74 to $2.79 $2.66 to $2.73 13 |

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:  Net sales at constant currency (organic sales)  Adjusted operating profit  Adjusted operating profit margin  Adjusted net income  Adjusted income tax expense  Adjusted diluted EPS  Net debt  Total invested capital  Net debt to total invested capital West believes that these non-GAAP measures of financial results provide useful information to management and investors regarding business trends, results of operations, and the Company’s overall performance and financial position. Our executive management team uses these financial measures to evaluate the performance of the Company in terms of profitability and efficiency, to compare operating results to prior periods, to evaluate changes in the operating results of each segment, and to measure and allocate financial resources to our segments. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing its financial measures with other companies. Our executive management does not consider such non-GAAP measures in isolation or as an alternative to such measures determined in accordance with GAAP. The principal limitation of these financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded. In order to compensate for these limitations, non-GAAP financial measures are presented in connection with GAAP results. We urge investors and potential investors to review the reconciliations of our non-GAAP financial measures to the comparable GAAP financial measures, and not to rely on any single financial measure to evaluate the Company’s business. Net sales at constant currency translates the current-period reported sales of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in effect during the comparable prior-year period. In calculating adjusted operating profit, adjusted income tax expense, adjusted net income and adjusted diluted EPS, we exclude the impact of items that are not considered representative of ongoing operations. Such items generally include restructuring and related costs, certain asset impairments, other specifically identified gains or losses, and discrete income tax items. Please see “Financial Guidance” and “Non-GAAP Financial Measures” in today’s press release for further information concerning reconciling items. Notes to Non-GAAP Financial Measures For additional details, please see today’s press release & Safe Harbor Statement 14 |

Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 15 | Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ million, except EPS data) Nine months ended September 30, 2017 Operating profit Income tax expense Net income Diluted EPS Reported (GAAP) $167.9 $19.1 $150.7 $1.99 Venezuela deconsolidation 11.1 - 11.1 0.15 Adjusted (Non-GAAP) $179.0 $19.1 $161.8 $2.14 Three months ended September 30, 2016 Operating profit Income tax expense Net income Diluted EPS Reported (GAAP) $51.3 $14.4 $37.6 $0.50 Restructuring and related charges 2.3 0.7 1.6 0.02 Discrete tax item - (0.3) 0.3 0.01 Adjusted (Non-GAAP) $53.6 $14.8 $39.5 $0.53 Nine months ended September 30, 2016 Operating profit Income tax expense Net income Diluted EPS Reported (GAAP) $142.5 $38.3 $104.5 $1.40 Restructuring and related charges 23.7 8.1 15.6 0.21 Venezuela currency devaluation 2.7 - 2.7 0.03 Discrete tax item - (0.3) 0.3 0.01 Adjusted (Non-GAAP) $168.9 $46.1 $123.1 $1.65

Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 16 | Reconciliation of Net Sales to Net Sales at Constant Currency(1) ($ million, except EPS data) (1) Net sales at constant currency translates the current-period reported sales of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in effect during the comparable prior-year period. Three months ended September 30, 2017 Proprietary CM Eliminations Total Reported net sales (GAAP) $308.9 $89.3 $ - $398.2 Effect of changes in currency translation rates (6.4) (1.3) - (7.7) Net sales at constant currency (Non-GAAP)(1) $302.5 $88.0 $ - $390.5 Nine months ended September 30, 2017 Proprietary CM Eliminations Total Reported net sales (GAAP) $930.5 $253.3 $(0.3) $1,183.5 Effect of changes in currency translation rates 3.9 (0.2) - 3.7 Net sales at constant currency (Non-GAAP)(1) $934.4 $253.1 $(0.3) $1,187.2

17 | Reconciliation of Reported Diluted EPS Guidance to Adjusted Diluted EPS guidance Full Year 2017 Guidance(1) (2) (3) Reported-diluted EPS guidance $2.59 to $2.64 Venezuela deconsolidation 0.15 Adjusted-diluted EPS guidance $2.74 to $2.79 (1) Please refer to “Notes to Non-GAAP Financial Measures” on slides 14 and 15, and “Non-GAAP Financial Measures” in today’s press release, for additional information regarding adjusted diluted EPS. (2) Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.18 for the remainder of 2017. Actual results will vary as a result of exchange rate variability. (3) Includes favorable impact from tax-related benefits associated with share-based payment transactions through the first nine months of 2017 of $30.3 million ($0.40 per diluted share). Also includes an estimated adverse Q4 2017 impact due to hurricane-related issues in Puerto Rico of approximately $5.0 million of net sales ($0.03 per diluted share). Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items.