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) – July 23, 2020

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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.25 per share	WST	New York Stock Exchange

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

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. ☐

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Item 2.02 Results of Operations and Financial Condition.

On July 23, 2020, West Pharmaceutical Services, Inc. (the “Company”) issued a press release announcing its second-quarter 2020 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 July 23, 2020.
	99.2	West Pharmaceutical Services, Inc. Presentation, dated July 23, 2020.
	104	The cover page from the Company’s Current Report on Form 8-K, dated July 23, 2020, formatted in Inline XBRL.

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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/ Bernard J. Birkett
	Bernard J. Birkett
	Senior Vice President and Chief Financial Officer
July 23, 2020

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EXHIBIT INDEX

Exhibit No.	Description
99.1	West Pharmaceutical Services, Inc. Press Release, dated July 23, 2020.
99.2	West Pharmaceutical Services, Inc. Presentation, dated July 23, 2020.
104	The cover page from the Company’s Current Report on Form 8-K, dated July 23, 2020, formatted in Inline XBRL.

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EX-99.1

Exhibit 99.1

West Announces Second-Quarter 2020 Results

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

Exton, PA, July 23, 2020 – West Pharmaceutical Services, Inc. (NYSE: WST) today announced its financial results for the second-quarter 2020 and updated full-year 2020 financial guidance.

Second-Quarter 2020 Summary (comparisons to prior-year period)

•Net sales of $527.2 million grew 12.2%; organic sales growth was 14.3%.

•Reported-diluted EPS of $1.21 increased 38%.

•Adjusted-diluted EPS of $1.25 increased 40%.

•Company is raising full-year 2020 net sales guidance to a new range of between $2.035 billion and $2.055 billion.

•Company is raising full-year 2020 adjusted-diluted EPS guidance to a new range of between $4.15 and $4.25.

“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 second quarter results reflect the strength and resiliency of our business in today’s environment,” said Eric M. Green, President and Chief Executive Officer. “We continue to see underlying demand growth in our existing business for our high-value products and in high adoption rates from customers who are developing therapeutics and vaccines to address the COVID-19 pandemic.”

Mr. Green continued, “The outlook for the balance of 2020 remains robust; and with our One West philosophy, broad range of innovative solutions and the ability to flex our global operating network, we are well positioned. I am extremely proud of our colleagues’ response to the challenging landscape and the dedicated focus on delivering high-quality components and solutions to our customers.”

Proprietary Products Segment

Net sales grew by 10.9% to $399.5 million. Organic sales growth was 13.3%, with currency translation decreasing sales growth by 240 basis points. High-value products (HVP) represented 65% of segment sales and generated double-digit organic sales growth.

Our Biologics market unit had double-digit organic sales growth, led by customer purchases of film-coated components (Flurotec^® and Daikyo^®), self-injection platforms, Westar^® and Crystal Zenith^® components. Our Generics market unit posted double-digit organic sales growth, and

our Pharma market unit grew organic sales by low-single digits. Both Generics and Pharma market units were led by sales of film-coated and Westar components.

Contract-Manufactured Products Segment

Net sales grew by 16.8% to $127.8 million. Organic sales growth was 17.8% with currency translation decreasing sales growth by 100 basis points. Segment performance was led by strong sales of healthcare-related injection and diagnostic devices.

Financial Highlights (first six months of 2020)

Operating cash flow was $205.2 million, an increase of 34%. Capital expenditures were $69.2 million. Free cash flow (operating cash flow minus capital expenditures) was $136.0 million, an increase of 42%.

Full-Year 2020 Financial Guidance

•Full-year 2020 net sales guidance is expected to be in a range of between $2.035 billion and $2.055 billion, compared to a prior range of between $1.95 billion and $1.97 billion.

•Organic sales growth is expected to be approximately 12%, compared to a prior guidance range of 8%.

•Net sales guidance includes an estimated full-year headwind of $26 million for the full-year 2020 based on current foreign exchange rates, unchanged from prior guidance.

•Full-year 2020 adjusted-diluted EPS is expected to be in a range of between $4.15 and $4.25, compared to a prior range of between $3.52 and $3.62.

•Full-year adjusted-diluted EPS guidance includes an estimated headwind of approximately $0.07 based on current foreign currency exchange rates, unchanged from prior guidance.

•The revised guidance includes a $0.16 EPS impact from tax benefits from stock-based compensation in the first six months of 2020.

•For the remainder of the year, our EPS guidance range assumes a tax rate of 24% and does not include potential tax benefits from stock-based compensation. Any tax benefits associated with stock-based compensation beyond those recorded in the first six months of 2020 would provide a positive adjustment to our full-year EPS guidance.

Second-Quarter 2020 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 7789173.

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, July 30, 2020, by dialing 855-859-2056 (U.S.) or 404-537-3406 (International) and entering conference ID 7789173.

Investor Contact:	Media Contact:
Quintin Lai	Michele Pelkowski
Vice President, Investor Relations	Sr. Director, Global Communications
(610) 594-3318	(610) 594-3054
Quintin.Lai@westpharma.com	Michele.Pelkowski@westpharma.com

Forward-Looking Statements

Certain forward-looking statements appear in this release and include such words as “raising,” “continue,” “see,” “remains,” “are,” “expected,” “to be,” “includes,” “estimated,” “assumes,” “would provide,” 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: the duration and severity of the global COVID-19 pandemic, including prevailing economic conditions and general uncertainties relating thereto that may be unknown and unforeseeable; customers’ changing inventory requirements and manufacturing plans and customer decisions to move forward with our new products and product categories, including any re-prioritization of product needs due to COVID-19; other potential impacts from COVID-19, including interruptions or weaknesses in our supply chain, illness in our workforce and access to transport for our products; average profitability, or mix, of the products we sell; dependence on third-party suppliers and partners; 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 Part I Item 1A and Part II Item 1A, entitled “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Report on Form 10-Q for the period ended March 31, 2020, respectively.

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 translate 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 (“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.

WEST PHARMACEUTICAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(in millions, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Net sales	$	527.2	100%	$	469.7	100%	$	1,018.7	100%	$	913.2	100%
Cost of goods and services sold	332.1		63	311.8		66	656.6		64	608.5		67
Gross profit	195.1		37	157.9		34	362.1		36	304.7		33
Research and development	10.8		2	9.6		2	21.5		2	19.4		2
Selling, general and administrative expenses	77.7		15	70.3		15	149.5		15	138.9		15
Other expense (income), net	3.0		—	(2.5)		—	(0.5)		—	(4.8)		(1)
Operating profit	103.6		20	80.5		17	191.6		19	151.2		17
Interest expense, net	1.8		1	1.4		—	3.0		—	2.8		—
Other nonoperating (income) expense	(0.2)		—	(0.5)		—	0.1		—	(1.1)		—
Income before income taxes	102.0		19	79.6		17	188.5		19	149.5		17
Income tax expense	16.0		3	15.5		3	31.0		3	31.6		4
Equity in net income of affiliated companies	(5.2)		(1)	(2.0)		—	(8.0)		(1)	(3.6)		—
Net income	$	91.2	17%	$	66.1	14%	$	165.5	16%	$	121.5	13%
Net income per share:
Basic	$	1.24		$	0.90		$	2.24		$	1.64
Diluted	$	1.21		$	0.88		$	2.19		$	1.61
Average common shares outstanding	73.8			73.7			73.8			73.9
Average shares assuming dilution	75.5			75.1			75.5			75.3

WEST PHARMACEUTICAL SERVICES

REPORTING SEGMENT INFORMATION

(UNAUDITED)

(in millions)

	Three Months Ended June 30,						Six Months Ended June 30,
Net Sales:	2020			2019			2020			2019
Proprietary Products	$	399.5		$	360.3		$	773.0		$	700.7
Contract-Manufactured Products	127.8			109.4			245.9			212.5
Eliminations	(0.1)			—			(0.2)			—
Consolidated Total	$	527.2		$	469.7		$	1,018.7		$	913.2
Gross Profit:
Proprietary Products	$	170.8		$	142.2		$	320.9		$	274.5
Contract-Manufactured Products	24.3			15.7			41.2			30.2
Gross Profit	$	195.1		$	157.9		$	362.1		$	304.7
Gross Profit Margin	37.0		%	33.6		%	35.5		%	33.4		%
Operating Profit (Loss):
Proprietary Products	$	112.2		$	88.8		$	205.4		$	165.8
Contract-Manufactured Products	20.5			11.4			33.3			21.9
Stock-based compensation expense	(12.3)			(7.2)			(17.7)			(13.4)
General corporate costs	(14.4)			(11.1)			(27.0)			(21.1)
Adjusted Operating Profit	$	106.0		$	81.9		$	194.0		$	153.2
Adjusted Operating Profit Margin	20.1		%	17.4		%	19.0		%	16.8		%
Other unallocated items	(2.4)			(1.4)			(2.4)			(2.0)
Reported Operating Profit	$	103.6		$	80.5		$	191.6		$	151.2
Reported Operating Profit Margin	19.7		%	17.1		%	18.8		%	16.6		%

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-U.S. 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 June 30, 2020	Operating profit		Income tax expense		Net income		Diluted EPS
Reported (U.S. GAAP)	$	103.6	$	16.0	$	91.2	$	1.21
Pension Settlement (1)	—		0.2		0.7		0.01
Severance related costs(2)	2.2		0.6		1.6		0.02
Amortization of Acquisition-related Intangible Assets (3)	0.2		—		1.1		0.01
Adjusted (Non-U.S. GAAP)	$	106.0	$	16.8	$	94.6	$	1.25

Six months ended June 30, 2020	Operating profit		Income tax expense		Net income		Diluted EPS
Reported (U.S. GAAP)	$	191.6	$	31.0	$	165.5	$	2.19
Pension Settlement (1)	—		0.5		1.8		0.02
Severance related costs(2)	2.2		0.6		1.6		0.02
Amortization of Acquisition-related Intangible Assets (3)	0.2		—		2.1		0.03
Adjusted (Non-U.S. GAAP)	$	194.0	$	32.1	$	171.0	$	2.26

Three months ended June 30, 2019	Operating profit		Income tax expense		Net income		Diluted EPS
Reported (U.S. GAAP)	$	80.5	$	15.5	$	66.1	$	0.88
Restructuring and related charges (4)	1.4		0.3		1.1		0.01
Adjusted (Non-U.S. GAAP)	$	81.9	$	15.8	$	67.2	$	0.89

Six months ended June 30, 2019	Operating profit		Income tax expense		Net income		Diluted EPS
Reported (U.S. GAAP)	$	151.2	$	31.6	$	121.5	$	1.61
Restructuring and related charges (4)	2.0		0.5		1.5		0.02
Adjusted (Non-U.S. GAAP)	$	153.2	$	32.1	$	123.0	$	1.63

(1)During the three and six months ended June 30, 2020, the Company recorded a pension settlement charge of $0.9 million and $2.3 million, respectively, within other nonoperating expense (income), as it determined that normal-course lump-sum payments for our U.S. qualified defined benefit pension plan exceeded the threshold for settlement accounting.

(2)During the three and six months ended June 30, 2020, the Company recorded $2.2 million of severance related costs.

(3)During the three and six months ended June 30, 2020, the Company recorded $0.2 million of amortization expense within operating profit associated with an acquisition of an intangible asset during the second quarter of 2020. During the three and six months ended June 30, 2020 the company recorded $1.0 million and $2.0 million, respectively, of amortization expense in association with an acquisition of increased ownership interest in Daikyo.

(4)During the three and six months ended June 30, 2019, the Company recorded $1.4 million and $2.0 million, respectively, in restructuring and related charges.

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-U.S. GAAP FINANCIAL 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 ⁽⁵⁾

Three months ended June 30, 2020	Proprietary		CM		Eliminations	Total
Reported net sales (U.S. GAAP)	$	399.5	$	127.8	(0.1)	$	527.2
Effect of acquisitions and/or divestitures	—		—		—	—
Effect of changes in currency translation rates	8.6		1.0		—	9.6
Organic net sales (Non-U.S. GAAP) (5)	$	408.1	$	128.8	(0.1)	$	536.8

Six months ended June 30, 2020	Proprietary		CM		Eliminations	Total
Reported net sales (U.S. GAAP)	$	773.0	$	245.9	(0.2)	$	1,018.7
Effect of acquisitions and/or divestitures	(1.2)		—		—	(1.2)
Effect of changes in currency translation rates	17.0		2.4		—	19.4
Organic net sales (Non-U.S. GAAP) (5)	$	788.8	$	248.3	(0.2)	$	1,036.9

(5)Organic net sales exclude the impact from acquisitions and/or divestitures and translate 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-U.S. GAAP FINANCIAL 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

	2019 Actual	2020 Guidance	% Change
Reported-diluted EPS (U.S. GAAP)	$3.21	$4.06 to $4.16	26.5% to 29.6%
Restructuring and related charges	0.04	—
Gain on restructuring-related sales of assets	(0.02)	—
Pension settlement	0.04	0.02
Amortization of acquisition-related intangible assets	—	0.05
Argentina devaluation	0.01	—
Tax recovery	(0.04)	—
Severance related costs	—	0.02
Adjusted-diluted EPS (Non-U.S. GAAP) (6)	$3.24	$4.15 to $4.25	28.1% to 31.2%

Notes:

See “Full-Year 2020 Financial Guidance” and “Non-U.S. GAAP Financial Measures” in today’s press release for additional information regarding adjusted-diluted EPS.

(6)In 2019, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.14. We have opted not to forecast 2020 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 and Second-Quarter 2020, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.07 and $0.09, respectively. Any future tax benefits associated with stock-based compensation that we receive in 2020 would provide a positive adjustment to our full-year EPS guidance.

WEST PHARMACEUTICAL SERVICES

CASH FLOW ITEMS

(UNAUDITED)

(in millions)

	Six Months Ended June 30,
	2020		2019
Depreciation and amortization	$	52.2	$	51.8
Operating cash flow	$	205.2	$	152.7
Capital expenditures	$	69.2	$	57.1

WEST PHARMACEUTICAL SERVICES

FINANCIAL CONDITION

(UNAUDITED)

(in millions)

	As of June 30, 2020		As of December 31, 2019
Cash and cash equivalents	$	445.9	$	439.1
Accounts receivable, net	$	340.6	$	319.3
Inventories	$	274.8	$	235.7
Accounts payable	$	162.3	$	156.8
Debt	$	256.2	$	257.3
Equity	$	1,606.3	$	1,573.2
Working capital	$	735.4	$	717.1

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

EX-99.2

West Pharmaceutical Services, Inc. Second-Quarter 2020 Analyst Conference Call 9 a.m. Eastern Time, July 23, 2020 Eric M. Green Bernard J. Birkett Speakers President and Senior Vice President and Chief Executive Officer Chief Financial Officer A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com 877-930-8295 (U.S.) To participate on the call, please dial: 253-336-8738 (International) The conference ID is 7789173 An online archive of the broadcast will be available at 855-859-2056 (U.S.) the website three hours after the live call and will be 404-537-3406 (International) available through Thursday, July 30, 2020, by dialing: The conference ID is 7789173 These presentation materials are intended to accompany today’s press release announcing the Company’s results for the second quarter 2020 and management’s discussion of those results during today’s conference call. 1 WST Q2 2020 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 U.S. GAAP. Please refer to “Reconciliation of Non-U.S. GAAP Financial 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 Q2 2020 Earnings

We are in the business of helping our customers bring new medicines and treatments that improve the lives of patients. 3 WST Q2 2020 Earnings

Addressing Pandemic Demand for Future Therapeutics and Vaccines Global Commercial Manufacturing Engagement Operations Team Capital Members Expansion 4 WST Q2 2020 Earnings

Second-Quarter 2020 Results ▪ Q2 2020 net sales of $527.2 million grew 12.2%; organic sales growth was 14.3% ▪ Q2 2020 reported-diluted EPS of $1.21 increased 38%; adjusted- diluted EPS of $1.25 increased 40% ▪ Company is raising full-year 2020 net sales guidance to a new range of between $2.035 billion and $2.055 billion and is raising full-year 2020 adjusted-diluted EPS guidance to a new range of between $4.15 and $4.25 (1) (1) Please refer to “Notes to Non-U.S. GAAP Financial Measures” on slides 13-17 and the discussion under the heading “Non-U.S. GAAP Financial Measures” in today’s press release, for additional information regarding adjusted-diluted EPS. 5 WST Q2 2020 Earnings

Second-Quarter 2020 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended June 30 2020 2019 Reported Net Sales $527.2 $469.7 Gross Profit Margin 37.0% 33.6% Reported Operating Profit $103.6 $80.5 Adjusted Operating Profit (1) $106.0 $81.9 Reported Operating Profit Margin 19.7% 17.1% Adjusted Operating Profit Margin (1) 20.1% 17.4% Reported-Diluted EPS $1.21 $0.88 Adjusted-Diluted EPS (1) $1.25 $0.89 (1) “Adjusted Operating Profit,” “Adjusted Operating Profit Margin” and “Adjusted-Diluted EPS” are Non-U.S. GAAP financial measures. See slides 13-17 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. 6 WST Q2 2020 Earnings

Second-Quarter 2020 Organic Sales Growth Q2 OVERALL ORGANIC SALES GROWTH Proprietary Products Q2 2020 organic sales growth of 13.3%, 14.3% led by sales of high-value products, which grew double digits CONTRACT BIOLOGICS GENERICS PHARMA MANUFACTURING Sales led by high-value products, Sales led by high-value Sales led by high-value products, Organic sales growth of including Flurotec® coated products, including film-coated including Flurotec® and Westar® 17.8%, led by sales of components, Daikyo Crystal stoppers and Flurotec® components diagnostic and healthcare- Zenith® products, self-injection components related injection devices platforms, and Westar® components DD DD LSD DD Abbreviations: LSD – low-single digit; MSD – mid-single digit; HSD – high-single digit; DD – double digit 7 WST Q2 2020 Earnings

Change in Consolidated Net Sales Second-quarter 2019 to 2020 ($ millions) 8 WST Q2 2020 Earnings

Gross Profit Update ($ millions) Three Months Ended June 30, 2020 2019 Proprietary Products Gross Profit $170.8 $142.2 Proprietary Products Gross Profit Margin 42.8% 39.5% Contract-Manufactured Products Gross Profit $24.3 $15.7 Contract-Manufactured Products Gross Profit Margin 19.0% 14.3% Consolidated Gross Profit $195.1 $157.9 Consolidated Gross Profit Margin 37.0% 33.6% 9 WST Q2 2020 Earnings

Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items Financial Condition YTD YTD June 30, December 31, Q2 2020 Q2 2019 2020 2019 Depreciation and Amortization $52.2 $51.8 Cash and Cash Equivalents $445.9 $439.1 Operating Cash Flow $205.2 $152.7 Debt $256.2 $257.3 Capital Expenditures $69.2 $57.1 Equity $1,606.3 $1,573.2 Working Capital $735.4 $717.1 10 WST Q2 2020 Earnings

2020 Full-Year Guidance 2020 Full-Year Guidance (1,2) Consolidated Net Sales $2.035 - $2.055 billion Adjusted-Diluted EPS $4.15 - $4.25 (1) Please refer to “Notes to Non-U.S. GAAP Financial Measures” on slides 13-17 and the discussion under the heading “Non-U.S. GAAP Financial Measures” in today’s press release, for additional information regarding adjusted-diluted EPS. (2) The adjusted-diluted EPS guidance range does not include potential tax benefits from stock-based compensation beyond those incurred in the first-half of 2020. Any additional tax benefits associated with stock-based compensation received in 2020 would provide a positive adjustment to this guidance range. 11 WST Q2 2020 Earnings

Operating with Urgency for the Future ▪ Market-led strategy is delivering unique value propositions to customers ▪ Global operations is manufacturing and delivering products with market-leading service and quality ▪ We continue to invest in our business with digital technology and automation ▪ We are taking action with charitable donations and support of pandemic response, social and environmental causes 12 WST Q2 2020 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 translate 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, the impact from acquisitions and/or divestitures, and 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 financial measures to the comparable U.S. GAAP financial measures is included in the accompanying tables. 13 WST Q2 2020 Earnings

Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures” (Slides 13-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ millions, except EPS data) Operating Income tax Net Diluted Three months ended June 30, 2020 profit expense income EPS Reported (U.S. GAAP) $103.6 $16.0 $91.2 $1.21 Pension Settlement - 0.2 0.7 0.01 Severance related costs 2.2 0.6 1.6 0.02 Amortization of Acquisition-related Intangible Assets 0.2 - 1.1 0.01 Adjusted (Non-U.S. GAAP) $106.0 $16.8 $94.6 $1.25 Operating Income tax Net Diluted Six months ended June 30, 2020 profit expense income EPS Reported (U.S. GAAP) $191.6 $31.0 $165.5 $2.19 Pension Settlement - 0.5 1.8 0.02 Severance related costs 2.2 0.6 1.6 0.02 Amortization of Acquisition-related Intangible Assets 0.2 - 2.1 0.03 Adjusted (Non-U.S. GAAP) $194.0 $32.1 $171.0 $2.26 14 WST Q2 2020 Earnings

Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures” (Slides 13-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ millions, except EPS data) Operating Income tax Net Diluted Three months ended June 30, 2019 profit expense income EPS Reported (U.S. GAAP) $80.5 $15.5 $66.1 $0.88 Restructuring and related charges 1.4 0.3 1.1 0.01 Adjusted (Non-U.S. GAAP) $81.9 $15.8 $67.2 $0.89 Operating Income tax Net Diluted Six months ended June 30, 2019 profit expense income EPS Reported (U.S. GAAP) $151.2 $31.6 $121.5 $1.61 Restructuring and related charges 2.0 0.5 1.5 0.02 Adjusted (Non-U.S. GAAP) $153.2 $32.1 $123.0 $1.63 15 WST Q2 2020 Earnings

Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures” (Slides 13-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales to Organic Net Sales (1) ($ millions) Three months ended June 30, 2020 Proprietary CM Eliminations Total Reported net sales (U.S. GAAP) $399.5 $127.8 $(0.1) $527.2 Effect of acquisitions and/or divestitures - - - - Effect of changes in currency translation rates 8.6 1.0 - 9.6 Organic net sales (Non-U.S. GAAP) (1) $408.1 $128.8 $(0.1) $536.8 Six months ended June 30, 2020 Proprietary CM Eliminations Total Reported net sales (U.S. GAAP) $773.0 $245.9 $(0.2) $1,018.7 Effect of acquisitions and/or divestitures (1.2) - - (1.2) Effect of changes in currency translation rates 17.0 2.4 - 19.4 Organic net sales (Non-U.S. GAAP) (1) $788.8 $248.3 $(0.2) $1,036.9 (1) Organic net sales exclude the impact from acquisitions and/or divestitures and translate 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. 16 WST Q2 2020 Earnings

Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures” (Slides 13-17), “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 2019 Actual 2020 Guidance % Change Reported-diluted EPS (U.S. GAAP) $3.21 $4.06 to $4.16 26.5% to 29.6% Restructuring and related charges 0.04 - - Gain on restructuring-related sales of assets (0.02) - - Pension settlement 0.04 0.02 Amortization of acquisition-related intangible assets - 0.05 Argentina devaluation 0.01 - - Tax recovery (0.04) - - Severance related costs - 0.02 Adjusted-diluted EPS (Non-U.S. GAAP) (1) $3.24 $4.15 to $4.25 28.1% to 31.2% (1) See “Full-year 2020 Financial Guidance” and “Non-U.S. GAAP Financial Measures” in today’s press release for additional information regarding adjusted-diluted EPS. In 2019, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.14. We have opted not to forecast 2020 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 and Second-Quarter 2020, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.07 and $0.09, respectively. Any future tax benefits associated with stock- based compensation that we receive in 2020 would provide a positive adjustment to our full-year EPS guidance. 17 WST Q2 2020 Earnings

XML

Document and Entity Information Document and Entity Information	Jul. 23, 2020
Document and Entity Information [Abstract]
Entity Central Index Key	0000105770
Document Type	8-K
Document Period End Date	Jul. 23, 2020
Entity Registrant Name	WEST PHARMACEUTICAL SERVICES, INC.
Entity Incorporation, State or Country Code	PA
Entity File Number	1-8036
Entity Tax Identification Number	23-1210010
Entity Address, Address Line One	530 Herman O. West Drive
Entity Address, City or Town	Exton
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19341-0645
City Area Code	610
Local Phone Number	594-2900
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.25 per share
Trading Symbol	WST
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Amendment Flag	false