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) – February 13, 2018

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 February 15, 2018, West Pharmaceutical Services, Inc. (the “Company”) issued a press release announcing its fourth-quarter and full-year 2017 financial results. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 2.05 Costs Associated with Exit or Disposal Activities.

On February 15, 2018, the Company also announced that its Board of Directors approved a restructuring plan designed to realign its manufacturing capacity with demand. These changes are expected to be implemented over the next twelve to twenty-four months. The plan will require restructuring and related charges in the range of $8.0 million to $13.0 million and capital expenditures in the range of $9.0 million to $14.0 million. Once fully completed, we expect that the plan will provide the Company with annualized savings in the range of $17.0 million to $22.0 million.

Item 7.01 Regulation FD Disclosure.

On February 15, 2018, the Company also announced that its Board of Directors has approved a second-quarter 2018 dividend of $0.14 per share. The dividend will be paid on May 2, 2018, to shareholders of record as of April 18, 2018.

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 8.01 Other Events.

On February 15, 2018, the Company also announced that its Board of Directors authorized a share repurchase program for calendar-year 2018 authorizing the repurchase of up to 800,000 shares of the Company’s common stock from time to time on the open market or in privately-negotiated transactions as permitted under Exchange Act Rule 10b-18. The number of shares to be repurchased and the timing of such transactions will depend on a variety of factors, including market conditions, and is expected to be completed by December 31, 2018. The Company’s previously-authorized share repurchase program expired on December 31, 2017.

Forward-Looking Information

This Current Report on Form 8-K (“Form 8-K”) contains a number of forward-looking statements, all of which are based on the Company’s current expectations regarding future events and speak only as of the date of this Form 8-K. These forward-looking statements involve a number of risks and uncertainties and include statements about the Company’s planned restructuring and anticipated cost savings. For a description of certain factors that could cause the Company’s future results to differ from those expressed in any such forward-looking statements, see the risk factors disclosed in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Except as required by law or regulation, we do not intend to update any forward-looking statements.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibit No.	Description
	99.1	West Pharmaceutical Services, Inc. Press Release, dated February 15, 2018.
	99.2	West Pharmaceutical Services, Inc. Presentation, dated February 15, 2018.

2

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
February 15, 2018

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	West Pharmaceutical Services, Inc. Press Release, dated February 15, 2018.
99.2	West Pharmaceutical Services, Inc. Presentation, dated February 15, 2018.

4

EX-99.1

Exhibit 99.1

Investor Contact:

Quintin Lai

Vice President, Investor Relations

(610) 594-3318

Quintin.Lai@westpharma.com

West Announces Fourth-Quarter and Full-Year 2017 Results and

Announces Quarterly Dividend

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

Exton, PA, February 15, 2018 – West Pharmaceutical Services, Inc. (NYSE: WST) today announced its financial results for the fourth-quarter and full-year 2017 and provided financial guidance for full-year 2018.

Executive Summary

• Fourth-quarter 2017 reported net sales of $415.6 million grew 8.7% over the prior-year quarter. At constant currency, organic sales growth was 4.5%. Excluding impacts from the deconsolidation of operations in Venezuela and hurricane-related shutdowns, organic sales growth would have been 6.0%.

• Full-year 2017 reported net sales of $1.599 billion grew 6.0% over the prior year. At constant currency, organic sales growth was 5.2%.

• Fourth-quarter 2017 reported-diluted EPS was $0.00, reflecting a charge related to U.S. tax reform that reduced EPS by $0.64. Excluding this impact, fourth-quarter 2017 adjusted-diluted EPS was $0.64, as compared to $0.54 in the prior-year quarter.

• Full-year 2017 reported-diluted EPS was $1.99, including the aforementioned tax charge. Full-year 2017 adjusted-diluted EPS was $2.78, as compared to $2.18 in the prior year, representing 28% growth.

• For full-year 2018, net sales at constant-currency growth is expected to be within our long-term projected 6-8% range. Excluding 2017 net sales that will not recur in 2018, constant-currency sales growth is expected to be at the high end of that 6-8% range.

• Full-year 2018 adjusted-diluted EPS is expected to be in a range of $2.80 and $2.90, an increase of 1% to 4%, respectively, compared to $2.78 in 2017.

• The Company announced that its Board of Directors has approved a second-quarter 2018 dividend of $0.14 per share. The dividend will be paid on May 2, 2018, to shareholders of record as of April 18, 2018. The Board of Directors also authorized a share repurchase program for calendar-year 2018 of up to 800,000 shares.

• In conjunction with the ongoing Global Operations strategy, our Board of Directors has approved a restructuring program that will help streamline our manufacturing plant network. These

changes are expected to be implemented over the next twelve to twenty-four months. The plan will require restructuring expense in the range of $8.0 million to $13.0 million.

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

Executive Commentary

“We had a solid finish to the year with fourth-quarter 2017 organic sales growth in line with our expectations,” said Eric M. Green, President and Chief Executive Officer. “We were pleased to see a return to double-digit growth in our Biologics market unit and high-single digit growth in our Generics market unit.”

Mr. Green concluded, “We expect 2018 will be another year of above-market sales growth and operating profit margin expansion. We have been growing in excess of the 2-3% underlying unit growth of the injectable drug market we serve, as we continue to leverage the demand for our high-value products. Our teams continue to work closely with our global customer base to deliver the highest-quality critical components and solutions in a demanding regulatory backdrop for the packaging and delivery of injectable medicines.”

Fourth-Quarter and Full-Year 2017 Financial Results (comparisons to prior-year periods)

Fourth-quarter 2017 reported net sales of $415.6 million grew 8.7% over the prior-year quarter. At constant currency, organic sales growth was 4.5%. Excluding impacts from the deconsolidation of operations in Venezuela and hurricane-related shutdowns, we estimate that organic sales growth would have been 6.0%. Proprietary Products segment organic sales growth was 1.4%. By market unit, fourth-quarter 2017 Proprietary Products segment sales growth was led by double-digit growth in Biologics and high-single digit growth in Generics, offset by a low-single digit decline in Pharma. Contract-Manufactured Products segment organic sales growth was 14.2%.

Full-year reported net sales of $1.599 billion grew 6.0% over the prior year. At constant currency, organic sales growth was 5.2%. Proprietary Products segment organic sales growth was 3.2%. By market unit, 2017 Proprietary Products segment sales growth was led by high-single digit growth in Biologics and mid-single digit growth in Pharma with flat performance in Generics. Contract-Manufactured Products segment organic sales growth was 12.0%.

Gross profit margin in fourth-quarter 2017 was 30.9%, a decline of 140 basis points from the same period last year, mainly due to higher unabsorbed overhead from new capacity at our Waterford and Dublin, Ireland and Kinston, North Carolina sites and due to Contract-Manufactured Products constituting a higher percentage of total sales. Fourth-quarter 2017 operating profit margin was 14.7%, a 30-basis point increase from the same quarter last year (excluding prior-year restructuring and related charges and a pension curtailment gain). SG&A as a percent of sales dropped from 15.9% in Q4 2016 to 14.2% in Q4 2017, due to lower stock-based compensation and U.S. pension expense, slightly offset by higher compensation and benefits and incremental costs associated with foreign currency rate translation.

Gross profit margin in full-year 2017 declined by 110 basis points, mainly due to higher sales of lower-margin Contract-Manufactured Products and unabsorbed overhead from newly-commissioned facilities.

Full-year 2017 reported operating profit margin was 14.3%. Adjusted operating profit margin was 15.0%, an increase of 20 basis points over the prior year (please see reconciliation data at the end of this press release). The decrease in gross profit margin was more than offset by lower SG&A expense as a percentage of sales and other income of $9.1 million for reimbursed costs associated with a technology license.

For the full-year 2017, income tax expense was $80.9 million, which represented an effective tax rate of 36.4%. Excluding a $48.8 million charge from U.S. tax reform in the fourth quarter of 2017 and a $33.1 million benefit from changes associated with accounting for share-based payment transactions, the effective tax rate in 2017 would have been 29.3%. We believe, as a result of U.S. tax reform, our effective 2018 tax rate (excluding any tax benefits from stock-based compensation expense) will be reduced by approximately three percentage points from the 2017 effective tax rate of 29.3%.

During the fourth-quarter 2017, the Company repurchased 475,000 shares of common stock at a cost of $47.4 million. For the full-year 2017, the Company repurchased 800,000 shares of common stock at a cost of $74.4 million.

Full-Year 2018 Financial Guidance

The Company expects 2018 organic sales growth is expected to be within our long-term projected 6-8% range. Excluding sales that will not recur in 2018 ($32.6 million of 2017 sales will not recur in 2018 due to the cessation of a single customer contract, who opted to bring in-house its consumer plastics contract manufacturing operations, and deconsolidation of our Venezuelan operations), the Company expects 2018 sales growth to be at the higher end of that range. Full-year 2018 sales are expected to be in the range of $1.720 billion to $1.730 billion, using an assumed translation exchange rate of $1.20 per Euro.

The Company expects to expand both gross and operating profit margins in 2018. Excluding items from 2017 that will not recur in 2018 (e.g., the Company does not expect any 2018 income from the sale of a technology license that occurred in 2017), operating profit margin is expected to increase in excess of 100 basis points, which includes investments we are making for future growth such as required validation testing at our Waterford facility in advance of commercial production later this year.

In conjunction with the ongoing Global Operations strategy, our Board of Directors has approved a restructuring program that will help streamline our manufacturing plant network and enable us to make investments to drive our high-value proprietary products and healthcare-related contract manufacturing business, and drive margin expansion.

These changes are expected to be implemented over the next twelve to twenty-four months. The plan will require restructuring expense in the range of $8.0 million to $13.0 million and capital expenditures in the range of $9.0 million to $14.0 million. Once fully completed, we expect that the plan will provide the Company with annualized savings in the range of $17.0 million to $22.0 million.

Full-year 2018 adjusted-diluted EPS is expected to be in a range of $2.80 to $2.90, an increase of 1% to 4%, respectively, compared to $2.78 in 2017. This estimate excludes any expense or benefits from the Global Operations restructuring plan. Excluding tax-benefits from stock-based compensation expense ($0.44 of diluted-EPS benefits in 2017, an estimated $0.14 of diluted-EPS benefits in 2018), the Company expects full-year 2018 adjusted-diluted EPS to increase by 14% to 18%.

The Company estimates its 2018 capital spending will be approximately $150 million.

Fourth-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 9393569.

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, February 22, 2018, by dialing 855-859-2056 (U.S.) or 404-537-3406 (International) and entering conference ID 9393569.

Forward-Looking Statements

Certain forward-looking statements are included in this release. They use such words as “expected,” “continue,” “are,” “increase,” “will,” “estimated,” “believe,” “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 twelve months presented in the accompanying tables:

Tax law changes - During the three and twelve months ended December 31, 2017, the Company recorded a net tax charge of $48.8 million due to the estimated impact of U.S. tax reform, including the repatriation tax on accumulated foreign earnings and the remeasurement of deferred tax assets and other tax liabilities, as well as the impact of changes in enacted international tax rates on previously-recorded deferred tax asset and liability balances. During the three and twelve months ended December 31, 2016, the Company recorded a discrete tax charge of $0.7 million and $1.0 million, respectively, resulting from the impact of changes in enacted tax rates on its previously-recorded deferred tax asset and liability balances.

Venezuela deconsolidation - During the twelve months ended December 31, 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 December 31, 2016, the Company recorded $2.7 million in restructuring and related charges, consisting of $1.1 million for severance charges, $1.4 million for non-cash asset write-downs associated with the discontinued use of certain equipment, and $0.2 million for other charges. During the twelve months ended December 31, 2016, the Company incurred $26.4 million in restructuring and related charges, including $8.9 million for severance charges, $17.3 million for non-cash asset write-downs associated with the discontinued use of certain trademarks and certain equipment, and $0.2 million for other charges.

Pension curtailment gain - During the three and twelve months ended December 31, 2016, the Company recorded a pension curtailment gain of $2.1 million in connection with its decision to freeze both its U.S. qualified and non-qualified defined benefit pension plans as of January 1, 2019.

Venezuela currency devaluation - During the twelve months ended December 31, 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 U.S. Dollars to 10.0 Bolivars to U.S. Dollars.

WEST PHARMACEUTICAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in millions, except per share data)
	Three Months Ended December 31,										Twelve Months Ended December 31,
	2017					2016					2017				2016
Net sales	$	415.6		100	%	$	382.3		100	%	$	1,599.1	100	%	$	1,509.1	100	%
Cost of goods and services sold	287.1			69		258.9			68		1,086.5		68		1,008.0		67
Gross profit	128.5			31		123.4			32		512.6		32		501.1		33
Research and development	9.7			2		9.6			2		39.1		3		36.8		2
Selling, general and administrative expenses	58.9			14		60.9			16		242.6		15		239.8		16
Other (income) expense, net	(1.1		)	—		(1.4		)	—		2.0		—		27.7		2
Operating profit	61.0			15		54.3			14		228.9		14		196.8		13
Interest expense, net	1.7			1		1.1			—		6.5		—		7.0		—
Income before income taxes	59.3			14		53.2			14		222.4		14		189.8		13
Income tax expense	61.8			15		16.1			4		80.9		5		54.4		4
Equity in net income of affiliated companies	2.5			1		2.0			—		9.2		—		8.2		1
Net income	$	—		—	%	$	39.1		10	%	$	150.7	9	%	$	143.6	10	%
Net income per share:
Basic	$	—				$	0.53				$	2.04			$	1.96
Diluted	$	—				$	0.52				$	1.99			$	1.91
Average common shares outstanding	74.2					73.2					73.9				73.3
Average shares assuming dilution	75.9					74.9					75.8				75.0

WEST PHARMACEUTICAL SERVICES REPORTING SEGMENT INFORMATION (UNAUDITED) (in millions)
	Three Months Ended December 31,						Twelve Months Ended December 31,
Net Sales:	2017			2016			2017			2016
Proprietary Products	$	306.4		$	290.0		$	1,236.9		$	1,189.9
Contract-Manufactured Products	109.2			92.4			362.5			320.2
Eliminations	—			(0.1		)	(0.3		)	(1.0		)
Consolidated Total	$	415.6		$	382.3		$	1,599.1		$	1,509.1
Operating Profit (Loss):
Proprietary Products	$	54.0		$	56.3		$	242.2		$	241.9
Contract-Manufactured Products	18.2			12.6			48.3			38.2
U.S. pension expense	(1.1		)	(2.2		)	(4.3		)	(8.8		)
Stock-based compensation expense	(2.5		)	(5.4		)	(16.1		)	(19.5		)
General corporate costs	(7.6		)	(6.4		)	(30.1		)	(28.0		)
Adjusted Operating Profit	$	61.0		$	54.9		$	240.0		$	223.8
Adjusted Operating Profit Margin	14.7		%	14.4		%	15.0		%	14.8		%
Venezuela deconsolidation	—			—			(11.1		)	—
Venezuela currency devaluation	—			—			—			(2.7		)
Restructuring and related charges	—			(2.7		)	—			(26.4		)
Pension curtailment gain	—			2.1			—			2.1
Reported Operating Profit	$	61.0		$	54.3		$	228.9		$	196.8
Reported Operating Profit Margin	14.7		%	14.2		%	14.3		%	13.0		%

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

Three months ended December 31, 2017	Operating profit		Income tax expense			Net income		Diluted EPS
Reported (GAAP)	$	61.0	$	61.8		$	—	$	—
Tax law changes	—		(48.8		)	48.8		0.64
Adjusted (Non-GAAP)	$	61.0	$	13.0		$	48.8	$	0.64

Twelve months ended December 31, 2017	Operating profit		Income tax expense			Net income		Diluted EPS
Reported (GAAP)	$	228.9	$	80.9		$	150.7	$	1.99
Tax law changes	—		(48.8		)	48.8		0.64
Venezuela deconsolidation	11.1		—			11.1		0.15
Adjusted (Non-GAAP)	$	240.0	$	32.1		$	210.6	$	2.78

Three months ended December 31, 2016	Operating profit			Income tax expense			Net income			Diluted EPS
Reported (GAAP)	$	54.3		$	16.1		$	39.1		$	0.52
Restructuring and related charges	2.7			0.9			1.8			0.02
Pension curtailment gain	(2.1		)	(0.8		)	(1.3		)	(0.01		)
Tax law changes	—			(0.7		)	0.7			0.01
Adjusted (Non-GAAP)	$	54.9		$	15.5		$	40.3		$	0.54

Twelve months ended December 31, 2016	Operating profit			Income tax expense			Net income			Diluted EPS
Reported (GAAP)	$	196.8		$	54.4		$	143.6		$	1.91
Restructuring and related charges	26.4			9.0			17.4			0.23
Venezuela currency devaluation	2.7			—			2.7			0.04
Pension curtailment gain	(2.1		)	(0.8		)	(1.3		)	(0.01		)
Tax law changes	—			(1.0		)	1.0			0.01
Adjusted (Non-GAAP)	$	223.8		$	61.6		$	163.4		$	2.18

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 December 31, 2017	Proprietary			CM			Eliminations		Total
Reported net sales (GAAP)	$	306.4		$	109.2		$	—	$	415.6
Effect of changes in currency translation rates	(12.3		)	(3.6		)	—		(15.9		)
Net sales at constant currency (Non-GAAP)(1)	$	294.1		$	105.6		$	—	$	399.7

Twelve months ended December 31, 2017	Proprietary			CM			Eliminations			Total
Reported net sales (GAAP)	$	1,236.9		$	362.5		$	(0.3	)	$	1,599.1
Effect of changes in currency translation rates	(8.4		)	(3.8		)	—			(12.2		)
Net sales at constant currency (Non-GAAP)(1)	$	1,228.5		$	358.7		$	(0.3	)	$	1,586.9

⁽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

	2017 Actual	2018 Guidance	% Change
Reported diluted EPS	$1.99	$2.80 to $2.90	40.7% to 45.7%
Venezuela deconsolidation	0.15	—
Tax law changes impact	0.64	—
Adjusted diluted EPS	$2.78	$2.80 to $2.90	0.7% to 4.3%
Stock comp tax benefit	(0.44)	(0.14)
Adjusted diluted EPS
excl. stock comp tax benefit	$2.34	$2.66 to $2.76	13.7% to 17.9%

Notes:

See “Full-Year 2018 Financial Guidance” and “Non-GAAP Financial Measures” in today’s press release for additional information regarding adjusted diluted EPS.

Guidance includes various currency exchange rate assumptions, most significantly the Euro at $1.20 for 2018. 2017 results were translated at an average rate of $1.13. Each $0.01 change in the Euro exchange rate results in approximately a $0.01 change in EPS.

Guidance excludes possible cost and benefits from the announced Global Operations restructuring plan.

WEST PHARMACEUTICAL SERVICES CASH FLOW ITEMS (UNAUDITED) (in millions)
	Twelve Months Ended December 31,
	2017		2016
Depreciation and amortization	$	96.7	$	90.7
Operating cash flow	$	263.3	$	219.4
Capital expenditures	$	130.8	$	170.2

WEST PHARMACEUTICAL SERVICES FINANCIAL CONDITION (UNAUDITED) (in millions)
	As of December 31, 2017		As of December 31, 2016
Cash and cash equivalents	$	235.9	$	203.0
Debt	$	197.0	$	228.6
Equity	$	1,279.9	$	1,117.5
Net debt-to-total invested capital(2)	N/A		2.2		%
Working capital	$	464.0	$	400.9

⁽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.

Trademark Notices

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

EX-99.2

West Pharmaceutical Services, Inc. Fourth-Quarter & Full-Year 2017 Analyst Conference Call 9 a.m. Eastern Time, February 15, 2018 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 9393569  An online archive of the broadcast will be available at the site three hours after the live call and will be available through Thursday, February 22, 2018, by dialing: − 855-859-2056 (U.S.) − 404-537-3406 (International) − The conference ID is 9393569 These presentation materials are intended to accompany today’s press release announcing the Company’s results for the fourth-quarter and full-year 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. 2 |

Fourth-Quarter & Full-Year 2017 Results  Q4 reported net sales of $415.6 million, representing 4.5% organic sales growth ‒ Excluding impact of Venezuela deconsolidation & hurricane- related shut-downs, sales growth would have been 6.0%  Full-year 2017 reported net sales of $1.6 billion, representing 5.2% organic sales growth  Q4 adjusted-diluted EPS1 was $0.64, representing 19% growth  Full-year 2017 adjusted-diluted EPS1 was $2.78, representing 28% growth 3 | (1) Please refer to ―Notes to Non-GAAP Financial Measures‖ on slides 16-20, and ―Non-GAAP Financial Measures‖ in today’s press release, for additional information regarding adjusted diluted EPS.

Organic Sales Growth 4 | Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Overall Organic Sales Growth 7.7% 8.7% 3.9% 3.7% 4.5% 5.2% Biologics DD MSD MSD LSD DD HSD Generics (MSD) (MSD) (MSD) LSD HSD FLAT Pharma HSD DD MSD (LSD) (LSD) MSD Contract Manufacturing DD DD DD DD DD DD Abbreviations: LSD – low-single digit; MSD – mid-single digit; HSD – high-single digit; DD – double digit

Proprietary Products Business Segment 5 | Growth in High Value Products Net Sales HVP HVP 2013 2017 Net Sales Standard Standard Delivery Delivery 100% Proprietary Product Net Sales 2013-2017 CAGR HVP 11% Delivery 18% Standard 2%  High-value product sales grew annually by 11%  Drug delivery business continues to expand off of a small base  SelfDoseTM Injector—2018 PharmaPack Innovator Award  SmartDose® Platform next generation devices introduced in November, 2017  Growth will be fueled by volume, price and adoption of HVP, including new product launches

R&D Portfolio Productivity New products launched over the past five years contributed more than 100 basis points of organic sales growth in 2017 6 | Advancing Our Core With technical manufacturing advances to produce higher value products Delivery Devices That integrate West’s containment and delivery expertise Administration Systems Systems that build West’s presence in the injectable marketplace

7 | 2013 2017 Growth in Healthcare-Focused Areas Net Sales Net Sales Contract Manufacturing Business Segment 100% Contract Manufacturing Net Sales Healthcare Healthcare Consumer Consumer 2013-2017 CAGR Consumer -2% Healthcare 9%  Healthcare business grew annually by 9%  Majority of growth is in the drug delivery & diagnostics segments  As part of long-term strategy, de-emphasizing consumer to make room for additional healthcare- related business  Future opportunity to expand capabilities to drive future growth

8 | Design & Prototyping Injection Molding of Plastics Product Assembly Project Management Global, Large-scale Capacity Customers’ Commercial Products Contract Manufacturing Business Segment Dublin Contract Manufacturing Facility  5 consecutive quarters of double- digit growth  Expanding capabilities & capacity to grow healthcare business West Contract Manufacturing Model

 Improved results in service & quality to customers ‒ More than 40% reduction in average lead time across network ‒ Improved quality; less than 80 out-of-spec parts per billion  Acceleration of process excellence improvements across global network, driving improvements in customer value stream  Streamlining our plant network to enable investments to drive our high-value proprietary products and healthcare-related contract manufacturing business, and drive margin expansion 9 | Global Operations 2017 AWARD FINALIST

10 | Fourth-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 16-20 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 sales are measured on a constant currency basis. Three Months Ended December 31, 2017 2016 Reported Net Sales $415.6 $382.3 Net Sales at Constant Currency (1) $399.7 $382.3 Gross Profit Margin 30.9% 32.3% Reported Operating Profit $61.0 $54.3 Adjusted Operating Profit (1) $61.0 $54.9 Reported Diluted EPS $ - $0.52 Adjusted Diluted EPS (1) $0.64 $0.54

$415.6 $14.9 $15.9 $2.5 $382.3 2016 Volume & Mix Currency Sales Price 2017 Change in Consolidated Net Sales Fourth-quarter 2016 to 2017 ($ millions) 11 |

30.9% (0.2%) (0.3%) (1.0%) (1.3%) 0.7% 0.4% 0.3% 32.3% 2016 Volume & Mix Sales Price Efficiency Net Currency Raw Material Plant OH Other 2017 Change in Gross Profit Margin % Fourth-quarter 2016 to 2017 12 |

Change in SG&A Costs Fourth-quarter 2016 to 2017 ($ millions) $58.9 $0.7 $1.1 $3.1 $1.5 $1.4 $60.9 2016 Comp and Benefits Currency Translation Professional Services U.S. Pension Other 2017 15.9% of Net Sales 14.2% of Net Sales 13 |

Cash Flow and Balance Sheet Metrics ($ millions) 14 | CASH FLOW ITEMS (UNAUDITED) (in millions) FINANCIAL CONDITION (UNAUDITED) (in millions) Twelve Months Ended December 31, 2017 2016 Depreciation and amortization $96.7 $90.7 Operating cash flow $263.3 $219.4 Capital expenditures $130.8 $170.2 As of December 31, 2017 As of December 31, 2016 Cash and cash equivalents $235.9 $203.0 Debt $197.0 $228.6 Equity $1,279.9 $1,117.5 Net debt-to-total invested capital N/A 2.2% Working capital $464.0 $400.9

Full-Year 2018 Guidance  Full-year 2018 reported net sales are expected to be in a range between $1.720 billion to $1.730 billion*  Full-year 2018 net sales at constant-currency growth is expected to be within our long-term projected 6-8% range ‒ Excluding 2017 net sales that will not recur in 2018, constant-currency sales growth is expected to be at the high end of that 6-8% range  Full-year 2018 adjusted-diluted EPS is expected to be in a range between $2.80 to $2.901,2 ‒ This includes an estimated positive EPS impact of $0.14 from tax benefits from stock-based compensation ‒ In conjunction with the ongoing Global Operations strategy, our Board of Directors has approved a restructuring program that will help streamline our manufacturing plant network. These changes are expected to be implemented over the next twelve to twenty-four months. The plan will require restructuring expense in the range of $8.0 million to $13.0 million and capital expenditures in the range of $9.0 million to $14.0 million. Once fully completed, we expect that the plan will provide the Company with annualized savings in the range of $17.0 million to $22.0 million. 15 | * Using exchange rate of $1.20 per Euro. (1) Please refer to ―Notes to Non-GAAP Financial Measures‖ on slides 16-20, and ―Non-GAAP Financial Measures‖ in today’s press release, for additional information regarding adjusted diluted EPS. (2) Guidance excludes possible cost and benefits from the announced Global Operations restructuring plan.

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 16 |

Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 16-20), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 17 | Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ million, except EPS data) Twelve months ended December 31, 2017 Operating profit Income tax expense Net income Diluted EPS Reported (GAAP) $228.9 $80.9 $150.7 $1.99 Tax law changes - (48.8) 48.8 0.64 Venezuela deconsolidation 11.1 - 11.1 0.15 Adjusted (Non-GAAP) $240.0 $32.1 $210.6 $2.78 Three months ended December 31, 2017 Operating profit Income tax expense Net income Diluted EPS Reported (GAAP) $61.0 $61.8 $ - $ - Tax law changes - (48.8) 48.8 0.64 Adjusted (Non-GAAP) $61.0 $13.0 $48.8 $0.64

Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 16-20), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 18 | Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ million, except EPS data) Three months ended December 31, 2016 Operating profit Income tax expense Net income Diluted EPS Reported (GAAP) $54.3 $16.1 $39.1 $0.52 Restructuring and related charges 2.7 0.9 1.8 0.02 Pension curtailment gain (2.1) (0.8) (1.3) (0.01) Tax law changes - (0.7) 0.7 0.01 Adjusted (Non-GAAP) $54.9 $15.5 $40.3 $0.54 Twelve months ended December 31, 2016 Operating profit Income tax expense Net income Diluted EPS Reported (GAAP) $196.8 $54.4 $143.6 $1.91 Restructuring and related charges 26.4 9.0 17.4 0.23 Venezuela currency devaluation 2.7 - 2.7 0.04 Pension curtailment gain (2.1) (0.8) (1.3) (0.01) Tax law changes - (1.0) 1.0 0.01 Adjusted (Non-GAAP) $223.8 $61.6 $163.4 $2.18

Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 16-20), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 19 | 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 December 31, 2017 Proprietary CM Eliminations Total Reported net sales (GAAP) $306.4 $109.2 $ - $415.6 Effect of changes in currency translation rates (12.3) (3.6) - (15.9) Net sales at constant currency (Non-GAAP) (1) $294.1 $105.6 $ - $399.7 Twelve months ended December 31, 2017 Proprietary CM Eliminations Total Reported net sales (GAAP) $1,236.9 $362.5 $(0.3) $1,599.1 Effect of changes in currency translation rates (8.4) (3.8) - (12.2) Net sales at constant currency (Non-GAAP) (1) $1,228.5 $358.7 $(0.3) $1,586.9

20 | Reconciliation of Reported Diluted EPS Guidance to Adjusted Diluted EPS guidance 2017 Actual 2018 Guidance % Change Reported-diluted EPS $1.99 $2.80 to $2.90 40.7% to 45.7% Venezuela deconsolidation 0.15 - Tax law changes impact 0.64 - Adjusted-diluted EPS $2.78 $2.80 to $2.90 0.7% to 4.3% Stock compensation tax benefit (0.44) (0.14) Adjusted-diluted EPS excluding stock comp tax benefit $2.34 $2.66 to $2.76 13.7% to 17.9% Notes: Please refer to ―Notes to Non-GAAP Financial Measures‖ on slides 16 to 18, and ―Non-GAAP Financial Measures‖ in today’s press release, for additional information regarding adjusted diluted EPS. Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.20 for 2018. 2017 results were translated at an average rate of $1.13. Each $0.01 change in the euro exchange rate results in approximately a $0.01 change in EPS. Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 16-20), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items.