Document

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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

Date of Report (Date of Earliest Event Reported) – April 25, 2019

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 April 25, 2019, West Pharmaceutical Services, Inc. (the “Company”) issued a press release announcing its first-quarter 2019 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 April 25, 2019.
	99.2	West Pharmaceutical Services, Inc. Presentation, dated April 25, 2019.

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/ Bernard J. Birkett
	Bernard J. Birkett
	Senior Vice President, Chief Financial Officer and Treasurer


April 25, 2019

West Announces First-Quarter 2019 Results

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

Exton, PA, April 25, 2019 – West Pharmaceutical Services, Inc. (NYSE: WST) today announced its financial results for the first-quarter 2019 and updated full-year 2019 financial guidance.

First-Quarter 2019 Summary (comparisons to prior-year period)

Net sales of $443.5 million grew 7%, organic sales growth was 11%

Reported-diluted EPS of $0.73 increased 26%

Adjusted-diluted EPS of $0.74 increased 19%

Repurchased 800,000 shares of common stock for $83.1 million

Company reaffirms full-year 2019 net sales guidance and raises full-year 2019 adjusted-diluted EPS guidance to a new range between $2.80 and $2.90, compared to a prior range between $2.77 and $2.89.

“Adjusted-diluted EPS” and “organic sales growth” are Non-U.S. GAAP measurements. See discussion under the heading “Non-U.S. GAAP Financial Measures” in this release.

“Our organization executed on multiple fronts to deliver a strong start to the year, with good growth performance across all segments and market units,” said Eric M. Green, President and Chief Executive Officer. “With double-digit organic sales growth in high-value products, coupled with continued execution on Global Operations strategic initiatives, we expanded adjusted operating profit margin by 250 basis points.”

Proprietary Products Segment

Net sales grew by 4.3% to $340.4 million. Organic sales growth was 9.4% with currency translation decreasing sales by 5.1%. High-value products (HVP) represented 60% of segment sales and had double-digit organic sales growth.

Our Biologics market unit had double-digit organic sales growth, led by HVP components such as NovaPure^® and Westar^®RU. Our Generics market unit had high-single digit organic sales growth, seeing a substantial increase in sales related to self-injection delivery device development agreements. Our Pharma market unit had low-single digit growth, impacted by a decline in Vial2Bag^® sales due to our previously discussed voluntary recall.

Contract-Manufactured Products Segment

Net sales grew by 15.3% to $103.1 million. Organic sales growth was 18.9% with currency translation decreasing sales by 3.6%. Segment performance was led by strong sales of healthcare-related injection and diagnostic devices.

Financial Highlights

Operating cash flow was $47.6 million, an increase of 5.8%. Capital expenditures in the quarter were $28.8 million. Free cash flow (operating cash flow minus capital expenditures) was $18.8 million, an increase of 10.6%.

During the quarter, the Company repurchased 800,000 shares for $83.1 million at an average share price of $103.89, which completed the 2019 share repurchase program authorized by the Company’s Board of Directors.

The Company recorded $0.6 million of restructuring and related charges in the first-quarter 2019 from Global Operations actions that are streamlining our manufacturing network. This plan is expected to be completed by the end of 2019 and to require $7.0 million of restructuring and related charges in 2019. Implemented in the first-quarter of 2018, the Company expects cumulative expenses over the plan period to be approximately $15.0 million. Once fully completed, the Company anticipates that the plan will provide annualized savings of approximately $14.0 million.

Full-Year 2019 Financial Guidance

Continuing to expect net sales to be in a range between $1.795 billion and $1.820 billion

Reaffirming organic sales growth range of 6% to 8%

Net sales guidance includes a headwind of $34 million to $37 million for the full-year 2019 based on current foreign exchange rates, compared to prior guidance of a full-year negative impact of $30 million

Raising adjusted-diluted EPS to a new range between $2.80 and $2.90, compared to prior guidance range between $2.77 and $2.89

Includes an estimated headwind of approximately $0.07 to $0.08 based on current foreign currency exchange rates, compared to prior guidance of a full-year negative impact of $0.06

First-Quarter 2019 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 7794502.

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, May 2, 2019, by dialing 855-859-2056 (U.S.) or 404-537-3406 (International) and entering conference ID 7794502.



Investor Contact:	Media Contact:
Quintin Lai	Emily Denney
Vice President, Investor Relations	Vice President, Communications
(610) 594-3318	(610) 594-3035
Quintin.Lai@westpharma.com	Emily.Denney@westpharma.com

Forward-Looking Statements

Certain forward-looking statements are included in this release. They use such words as “reaffirms,” “raises,” “expected,” “require.” “anticipates,” “complete,” “expects,” “provide,” “continuing,” “expect,” “reaffirming,” “includes,” “raising,” 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; the ability to meet development milestones with key customers; our analysis of the root cause of the circumstances relating to the voluntary recall is still underway and we cannot predict the time or expense required to address the issues; our estimates of the impact on our financial results related to the voluntary recall are preliminary and subject to change as we conduct further analysis; and the voluntary recall and the related circumstances could subject us to claims or proceedings which may adversely impact our net sales and net income, as well as harm our reputation and customer relationships or distract management from operating our business. 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, 2018.

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

For the purpose of aiding the comparison of our year-over-year results, we may refer to net sales and other financial results excluding the effects of changes in foreign currency exchange rates. Organic net sales exclude the impact from acquisitions and/or divestitures and 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. We may also refer to financial results excluding the effects of unallocated items. The re-measured results excluding effects from currency translation and excluding the effects of unallocated items are not in conformity with U.S. generally accepted accounting principles (GAAP) and should not be used as a substitute for the comparable U.S. GAAP financial measures. The non-U.S. GAAP financial measures are incorporated into our discussion and analysis as management uses them in evaluating our results of operations and believes that this information provides users a valuable insight into our overall performance and financial position. A reconciliation of these adjusted Non-U.S. GAAP measures to the comparable U.S. GAAP financial measures is included in the accompanying tables.

WEST PHARMACEUTICAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in millions, except per share data)

	Three Months Ended March 31,
	2019					2018
Net sales	$	443.5		100	%	$	415.7		100	%
Cost of goods and services sold	296.7			67		281.3			68
Gross profit	146.8			33		134.4			32
Research and development	9.8			2		9.6			2
Selling, general and administrative expenses	68.6			15		68.3			16
Other (income) expense, net	(2.3		)	—		3.1			1
Operating profit	70.7			16		53.4			13
Interest expense, net	1.4			—		1.3			—
Other nonoperating income	(0.6		)	—		(1.6		)	—
Income before income taxes	69.9			16		53.7			13
Income tax expense	16.1			4		12.5			3
Equity in net income of affiliated companies	(1.6		)	—		(2.4		)	—
Net income	$	55.4		12	%	$	43.6		10	%

Net income per share:
Basic	$	0.75				$	0.59
Diluted	$	0.73				$	0.58

Average common shares outstanding	74.1					73.9
Average shares assuming dilution	75.3					75.5

WEST PHARMACEUTICAL SERVICES REPORTING SEGMENT INFORMATION (UNAUDITED) (in millions)

	Three Months Ended March 31,
Net Sales:	2019			2018
Proprietary Products	$	340.4		$	326.2
Contract-Manufactured Products	103.1			89.5
Consolidated Total	$	443.5		$	415.7

Gross Profit:
Proprietary Products	$	132.3		$	121.2
Contract-Manufactured Products	14.5			13.2
Gross Profit	$	146.8		$	134.4
Gross Profit Margin	33.1%			32.3%

Operating Profit (Loss):
Proprietary Products	$	77.0		$	62.8
Contract-Manufactured Products	10.5			9.5
U.S. pension expense	—			(2.4		)
Stock-based compensation expense	(6.2		)	(3.4		)
General corporate costs	(10.0		)	(9.8		)
Adjusted Operating Profit	$	71.3		$	56.7
Adjusted Operating Profit Margin	16.1		%	13.6		%

Restructuring and related charges	(0.6		)	(3.3		)
Reported Operating Profit	$	70.7		$	53.4
Reported Operating Profit Margin	15.9		%	12.8		%

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

Please refer to “Non-U.S. 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 March 31, 2019	Operating profit		Income tax expense		Net income		Diluted EPS
Reported (GAAP)	$	70.7	$	16.1	$	55.4	$	0.73
Restructuring and related charges⁽¹⁾	0.6		0.2		0.4		0.01
Adjusted (Non-GAAP)	$	71.3	$	16.3	$	55.8	$	0.74



Three Months Ended March 31, 2018	Operating profit		Income tax expense			Net income		Diluted EPS
Reported (GAAP)	$	53.4	$	12.5		$	43.6	$	0.58
Restructuring and related charges⁽¹⁾	3.3		0.6			2.7		0.03
Tax law changes ⁽²⁾	—		(0.3		)	0.3		0.01
Adjusted (Non-GAAP)	$	56.7	$	12.8		$	46.6	$	0.62

During the three months ended March 31, 2019 and 2018, the Company recorded $0.6 million and $3.3 million, respectively, in restructuring and related charges. The Company anticipates approximately $7.0 million of restructuring and related charges in 2019 to complete its current plan. Once fully completed, the Company expects that the plan will provide annualized savings of approximately $14.0 million.

During the three months ended March 31, 2018, the Company recorded a net tax charge of $0.3 million for the estimated impact of the Tax Cuts and Jobs Act.

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

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

(in millions, except per share data)

Reconciliation of Net Sales to Organic Net Sales⁽³⁾



Three Months Ended March 31, 2019	Proprietary		CM		Eliminations		Total
Reported net sales (GAAP)	$	340.4	$	103.1	$	—	$	443.5
Effect of acquisitions and/or divestitures	—		—		—		—
Effect of changes in currency translation rates	16.3		3.3		—		19.6
Organic net sales (Non-GAAP)⁽³⁾	$	356.7	$	106.4	$	—	$	463.1

Organic net sales exclude the impact from acquisitions and/or divestitures and 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-U.S. GAAP Financial Measures” for more information

(in millions, except per share data)

Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS Guidance



	2018 Actual	2019 Guidance	% Change
Reported-diluted EPS (GAAP)	$2.74	$2.73 to $2.83	(0.4%) to 3.3%
Restructuring and related charges	0.08	0.07
Argentina devaluation	0.02	—
Tax law changes	(0.03)	—
Adjusted-diluted EPS (Non-GAAP)⁽⁴⁾	$2.81	$2.80 to $2.90	(0.4%) to 3.2%

See “Full-Year 2019 Financial Guidance” and “Non-U.S. GAAP Financial Measures” in today’s press release for additional information regarding adjusted-diluted EPS.

In 2018, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.19. We have opted not to forecast 2019 tax benefits from stock-based compensation in upcoming quarters, as they are out of the Company’s control. Instead, we recognize the benefits as they occur. In the first-quarter 2019, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.02. Any future tax benefits associated with stock-based compensation that we receive in 2019 would provide a positive adjustment to our full-year EPS guidance.

WEST PHARMACEUTICAL SERVICES CASH FLOW ITEMS (UNAUDITED) (in millions)

	Three Months Ended March 31,
	2019		2018
Depreciation and amortization	$	25.5	$	26.4
Operating cash flow	$	47.6	$	45.0
Capital expenditures	$	28.8	$	28.0

WEST PHARMACEUTICAL SERVICES FINANCIAL CONDITION (UNAUDITED) (in millions)

	As of March 31, 2019		As of December 31, 2018
Cash and cash equivalents	$	265.5	$	337.4
Accounts receivable, net	$	318.2	$	288.2
Inventories	$	226.1	$	214.5
Accounts payable	$	137.7	$	130.4
Debt	$	195.5	$	196.1
Equity	$	1,372.9	$	1,396.3
Working capital	$	562.9	$	610.7

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

West Pharmaceutical Services, Inc. First-Quarter 2019 Analyst Conference Call 9 a.m. Eastern Time, April 25, 2019 ▪ A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com Speakers: ▪ To participate on the call, please dial: Eric M. Green − 877-930-8295 (U.S.) President and Chief Executive Officer − 253-336-8738 (International) − The conference ID is 7794502 Bernard J. Birkett Senior Vice President, Chief Financial Officer ▪ An online archive of the broadcast will be available at the site three and Treasurer hours after the live call and will be available through Thursday, May 2, 2019, by dialing: − 855-859-2056 (U.S.) − 404-537-3406 (International) − The conference ID is 7794502 These presentation materials are intended to accompany today’s press release announcing the Company’s results for the first-quarter 2019 and management’s discussion of those results during today’s conference call. 1 WST Q1 2019 Earnings

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-U.S. GAAP financial measures. Non-U.S. 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-U.S. 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® is a registered trademark of Daikyo Seiko, Ltd. 2 WST Q1 2019 Earnings

First-Quarter Earnings Highlights • Net sales of $443.5 million grew 7%, organic sales growth was 11% • Reported-diluted EPS of $0.73 increased 26% (1) • Adjusted-diluted EPS of $0.74 increased 19% (1) • Repurchased 800,000 shares of common stock for $83.1 million • Company reaffirms full-year 2019 net sales guidance and raises full-year 2019 adjusted-diluted EPS guidance to a new range between $2.80 and $2.90, compared to a prior range between $2.77 and $2.89 (1) (1) Please refer to “Notes to Non-GAAP Financial Measures” on slides 11-14, and “Non-U.S. GAAP Financial Measures” in today’s press release, for additional information regarding adjusted-diluted EPS. 3 WST Q1 2019 Earnings

Organic Sales Growth Q1 2019 Overall Organic Proprietary organic sales growth of 9.4%, led by sales of high value 11% Sales Growth products, which grew double digits Sales led by high value products including NovaPure® and Westar® RU Biologics DD BIOLOGICS components Sales led by standard components as well as high-value Envision® GENERICS Generics HSD components, and increased delivery device development agreements Sales from high value products, including Daikyo® and Envision® Pharma LSD components, offset the impact of the decline in Vial2Bag® sales due PHARMA to voluntary recall Contract Organic sales growth of 18.9%, led by strong sales of healthcare- CONTRACT DD MFG Manufacturing related injection and diagnostic devices Abbreviations: LSD – low-single digit; MSD – mid-single digit; HSD – high-single digit; DD – double digit 4 WST Q1 2019 Earnings

Executing Market-led Strategy Customer Reach Operational Excellence Scientific Innovation • Digital Technology Center • 80 basis points of profit margin • Hosted 150 customers from 45 launched in Bengaluru, India expansion, led by 180 points companies at West HQ with the from Proprietary Products Parenteral Drug Association for • Sales office in S. Korea Combination Product Workshop opened on April 1, 2019 • Restructuring plan on track following GIS Korea Asset • Published 60 pieces of scientific Acquisition • Improvements in safety, quality and technical content to our and service metrics West Knowledge Center & website 5 WST Q1 2019 Earnings

First-Quarter 2019 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended March 31, 2019 2018 Reported Net Sales $443.5 $415.7 Net Sales at Constant Currency $463.1 $415.7 Gross Profit Margin 33.1% 32.3% Reported Operating Profit $70.7 $53.4 Adjusted Operating Profit $71.3 $56.7 Reported-Diluted EPS $0.73 $0.58 Adjusted-Diluted EPS(1) $0.74 $0.62 (1) “Net sales at constant currency” and “adjusted-diluted EPS” are Non-U.S. GAAP measures. See slides 11-14 and the discussion under the heading “Non-U.S. 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. 6 WST Q1 2019 Earnings

Change in Consolidated Net Sales First-quarter 2018 to 2019 ($ millions) 7 WST Q1 2019 Earnings

Gross Profit Update ($ millions) Three Months Ended March 31, 2019 2018 Proprietary Products $132.3 $121.2 Gross Profit Proprietary Products 38.9% 37.1% Gross Profit Margin Contract-Manufactured Products $14.5 $13.2 Gross Profit Contract-Manufactured Products 14.0% 14.8% Gross Profit Margin Consolidated Gross Profit $146.8 $134.4 Consolidated Gross Profit Margin 33.1% 32.3% 8 WST Q1 2019 Earnings

Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items Financial Condition Q1 19 Q1 18 March 31, December 31, 2019 2018 Depreciation and Amortization $25.5 $26.4 Cash and Cash Equivalents $265.5 $337.4 Operating Cash Flow $47.6 $45.0 Debt $195.5 $196.1 Capital Expenditures $28.8 $28.0 Equity $1,372.9 $1,396.3 Working Capital $562.9 $610.7 9 WST Q1 2019 Earnings

2019 Full-Year Guidance 2019 Full-Year Guidance(1,2) Consolidated Net Sales $1.795 - $1.820 billion Operating Margin Improvement +100 bps Adjusted-Diluted EPS $2.80 - $2.90 Capital Spending $120 - $130 million (1) Please refer to “Notes to Non-U.S. GAAP Financial Measures” on slides 11-14, and “Non-U.S. 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 2018 Global Operations restructuring plan. It does not include potential future tax benefits from stock- based compensation. 10 WST Q1 2019 Earnings

Notes to Non-U.S. GAAP Financial Measures For additional details, please see today’s press release & Safe Harbor Statement ▪ For the purpose of aiding the comparison of our year-over-year results, we may refer to net sales and other financial results excluding the effects of changes in foreign currency exchange rates. ▪ Organic net sales exclude the impact from acquisitions and/or divestitures and 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. ▪ We may also refer to financial results excluding the effects of unallocated items. ▪ The re-measured results excluding effects from currency translation and excluding the effects of unallocated items are not in conformity with U.S. GAAP and should not be used as a substitute for the comparable U.S. GAAP financial measures. ▪ The non-U.S. GAAP financial measures are incorporated into our discussion and analysis as management uses them in evaluating our results of operations and believes that this information provides users a valuable insight into our overall performance and financial position. ▪ A reconciliation of these adjusted Non-U.S. GAAP measures to the comparable U.S. GAAP financial measures is included in the accompanying tables. 11 WST Q1 2019 Earnings

Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures” (Slides 11-14), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS Guidance 2018 Actual 2019 Guidance % Change Reported-diluted EPS (U.S. GAAP) $2.74 $2.73 to $2.83 (0.4%) to 3.3% Restructuring and related charges 0.08 0.07 Argentina devaluation 0.02 - Tax law changes (0.03) - Adjusted-diluted EPS (Non-U.S. GAAP)(1) $2.81 $2.80 to $2.90 (0.4%) to 3.2% See “Full-Year 2019 Financial Guidance” and “Non-U.S. GAAP Financial Measures” in today’s press release for additional information regarding adjusted diluted EPS. (1) In 2018, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.19. We have opted not to forecast 2019 tax benefits from stock based-compensation in upcoming quarters, as they are out of the Company’s control. Instead, we recognize the benefits as they occur. In the first-quarter 2019, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.02. Any future tax benefits associated with stock-based compensation that we receive in 2019 would provide a positive adjustment to our full-year EPS guidance. 14 WST Q1 2019 Earnings