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) – April 27, 2023

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 April 27, 2023, West Pharmaceutical Services, Inc. (the “Company”) issued a press release announcing its first-quarter 2023 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 27, 2023.
	99.2	West Pharmaceutical Services, Inc. Presentation, dated April 27, 2023.
	104	The cover page from the Company’s Current Report on Form 8-K, dated April 27, 2023, formatted in Inline XBRL.

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/ Bernard J. Birkett
	Bernard J. Birkett
	Senior Vice President, Chief Financial and Operations Officer
April 27, 2023

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EXHIBIT INDEX

Exhibit No.	Description
99.1	West Pharmaceutical Services, Inc. Press Release, dated April 27, 2023.
99.2	West Pharmaceutical Services, Inc. Presentation, dated April 27, 2023.
104	The cover page from the Company’s Current Report on Form 8-K, dated April 27, 2023, formatted in Inline XBRL.

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EX-99.1

Exhibit 99.1

West Announces First-Quarter 2023 Results and

Declares Third-Quarter 2023 Dividend

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

Exton, PA, April 27, 2023 – West Pharmaceutical Services, Inc. (NYSE: WST) today announced its financial results for the first-quarter 2023 and updated full-year 2023 financial guidance.

First-Quarter 2023 Summary (comparisons to prior-year period)

•Net sales of $716.6 million declined 0.5%; organic sales growth was 2.3%.

•Reported-diluted EPS of $1.85 declined by 19.2%.

•Adjusted-diluted EPS of $1.98 declined by 13.9%.

•The Company is updating full-year 2023 financial guidance of net sales to a new range of $2.965 billion to $2.990 billion compared to a prior range of $2.935 billion to $2.960 billion.

•The Company is updating full-year 2023 financial guidance of adjusted-diluted EPS to a new range of $7.50 to $7.65, compared to a prior range of $7.25 to $7.40.

•The Company also announced that its Board of Directors has approved a third-quarter 2023 dividend of $0.19 per share. The dividend will be paid on August 2, 2023, to shareholders of record as of July 26, 2023.

“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.

“We had a solid start to the year and are reaffirming our full-year organic sales growth outlook,” said Eric M. Green, President, Chief Executive Officer and Chair of the Board of Directors. “We delivered strong performances in both our Generics and Pharma market units, as our teams are addressing certain longer lead-time factors. Our Biologics market unit had continued growth in base demand; however, these efforts were offset by an expected decline in COVID-19 related sales. Our capital spending program remains on track, and we expect high-value product (HVP) global capacity expansion projects to be completed throughout the rest of the year and in 2024, as we prepare for future demand growth from our customers.”

Proprietary Products Segment

Net sales declined by 3.0% to $583.1 million. Organic sales declined by 0.1% with currency translation negatively impacting sales growth by 290 basis points. High-value products (components and devices) represented more than 70% of segment sales and organic sales declined by low-single digits, led by a decrease in COVID-19 related HVP sales.

The Biologics market unit had a double-digit percentage decline in organic sales, due to an expected decline of COVID-19 related HVP sales compared to the same period last year. The Generics and Pharma market units both had double-digit organic sales growth.

Contract-Manufactured Products Segment

Net sales increased by 12.5% to $133.5 million. Organic sales growth was 14.4% with currency translation negatively impacting sales growth by 190 basis points. Segment performance was led by growth in sales of components associated with injection-related devices.

Financial Highlights

Operating cash flow was $138.1 million, a decrease of 8.7%. Capital expenditures in the quarter were $82.1 million. Free cash flow (operating cash flow minus capital expenditures) was $56.0 million, a decrease of 34.4%.

During the quarter, the Company repurchased 183,360 shares for $60.1 million at an average share price of $327.90 under its share repurchase program.

Full-Year 2023 Financial Guidance

•The Company is updating full-year 2023 net sales guidance to be a new range of $2.965 billion to $2.990 billion, compared to a prior range of $2.935 billion to $2.960 billion.

◦Organic net sales growth guidance is unchanged and is expected to be approximately 3% to 4%.

◦Net sales guidance assumes COVID-19 related sales of approximately $60 million, compared to prior guidance of $85 million.

◦Net sales guidance includes an estimated full-year 2023 tailwind of $15 million based on current foreign currency exchange rates, compared to prior guidance of 2023 headwind of $30 million.

◦Net sales guidance also includes a reduction of $8 million resulting from an expected divestiture of a European facility that produced standard Proprietary Product components.

•Full-year 2023 adjusted-diluted EPS is expected to be in a range of $7.50 to $7.65, compared to prior guidance range of $7.25 to $7.40.

◦Full-year adjusted-diluted EPS guidance range includes an estimated tailwind of approximately $0.02 based on current foreign currency exchange rates, compared to prior guidance of a headwind of $0.11.

◦The updated guidance also includes EPS of $0.15 associated with first-quarter 2023 tax benefits from stock-based compensation.

◦For the remaining quarters of the year, our EPS guidance range assumes a tax rate of 22% 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-quarter 2023 would provide a positive adjustment to our full-year adjusted-diluted EPS guidance.

•Full-year 2023 capital spending guidance is unchanged and is expected to be $350 million. This includes incremental capital spending to support capacity expansions at existing HVP facilities.

First-Quarter 2023 Conference Call

The Company will host a conference call to discuss the results and business expectations at 9:00 a.m. Eastern Time today. The live audio-only webcast will be made available via the Company's Investor Relations website at www.westpharma.com

To participate and ask questions during the conference call, you must register in advance at https://register.vevent.com/register/BIaaff23c7aa3a4a7688c5b172cf804930. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that will be used to access the call.

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.

A replay of the conference call and webcast will be available on the Company's website for 30 days.

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

Forward-Looking Statements

This release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include such words as “updating,” “will,” “reaffirming,” “remains,” “expect,” “to be,” “prepare,” “is expected,” “assumes,” “includes,” “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: 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; interruptions or weaknesses in our supply chain, illness in our workforce and access to transport for our products; disruptions or limitations in the Company’s manufacturing capacity; average profitability, or mix, of the products we sell; dependence on third-party suppliers and partners; increased raw material, energy and labor costs; fluctuations in currency exchange; and the ability to meet development milestones with key customers; and the consequences of other geopolitical events, including natural disasters, acts of war, and global health crises. 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, entitled “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and other filings with the United States Securities and Exchange Commission, including the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K.

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

This release contains certain non-GAAP financial measures, including organic net sales and adjusted-diluted EPS. 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 currency 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 March 31,
	2023			2022
Net sales	$	716.6	100%	$	720.0	100%
Cost of goods and services sold	445.3		62	435.4		60
Gross profit	271.3		38	284.6		40
Research and development	17.1		2	14.6		2
Selling, general and administrative expenses	86.0		12	83.4		12
Other expense (income)	12.9		2	(3.1)		—
Operating profit	155.3		22	189.7		26
Interest (income) expense, net	(2.6)		—	1.9		—
Income before income taxes and equity in net income of affiliated companies	157.9		22	187.8		26
Income tax expense	23.6		3	21.2		3
Equity in net income of affiliated companies	(5.7)		(1)	(7.2)		(1)
Net income	$	140.0	20%	$	173.8	24%
Net income per share:
Basic	$	1.88		$	2.34
Diluted	$	1.85		$	2.29
Average common shares outstanding	74.5			74.4
Average shares assuming dilution	75.7			76.0

WEST PHARMACEUTICAL SERVICES

REPORTING SEGMENT INFORMATION

(UNAUDITED)

(in millions)

	Three Months Ended March 31,
Net Sales:	2023			2022
Proprietary Products	$	583.1		$	601.3
Contract-Manufactured Products	133.5			118.7
Eliminations	—			—
Consolidated Total	$	716.6		$	720.0
Gross Profit:
Proprietary Products	$	247.8		$	260.7
Contract-Manufactured Products	23.5			23.9
Gross Profit	$	271.3		$	284.6
Gross Profit Margin	37.9		%	39.5		%
Operating Profit (Loss):
Proprietary Products	$	170.7		$	193.4
Contract-Manufactured Products	17.4			19.1
Stock-based compensation expense	(8.5)			(5.5)
General corporate costs	(24.3)			(17.3)
Reported Operating Profit	$	155.3		$	189.7
Reported Operating Profit Margin	21.7		%	26.3		%
Unallocated items	9.6			0.2
Adjusted Operating Profit	$	164.9		$	189.9
Adjusted Operating Profit Margin	23.0		%	26.4		%

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 March 31, 2023	Operating profit	Income tax expense	Net income	Diluted EPS
Reported (U.S. GAAP)	$155.3	$23.6	$140.0	$1.85
Unallocated items:
Amortization of acquisition-related intangible assets (2)	0.2	—	0.7	0.01
Asset impairment for planned sale of plant (3)	9.4	—	9.4	0.12
Adjusted (Non-U.S. GAAP)	$164.9	$23.6	$150.1	$1.98

Three Months Ended March 31, 2022	Operating profit	Income tax expense	Net income	Diluted EPS
Reported (U.S. GAAP)	$189.7	$21.2	$173.8	$2.29
Unallocated items:
Pension settlement (1)	—	0.1	0.5	—
Amortization of acquisition-related intangible assets (2)	0.2	—	0.7	0.01
Adjusted (Non-U.S. GAAP)	$189.9	$21.3	$175.0	$2.30

(1)The Company recorded a pension settlement charge within other nonoperating (income) expense, 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 months ended March 31, 2023 and 2022, the Company recorded $0.2 million of amortization expense within operating profit associated with an intangible asset acquired during the second quarter of 2020. During the three months ended March 31, 2023 and 2022, the Company recorded $0.5 million of amortization expense in association with an acquisition of increased ownership interest in Daikyo.

(3)During the three months ended March 31, 2023, in preparation for the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment, the Company recorded an impairment expense of $9.4 million within other expense (income) and a corresponding reduction to the disposal group net assets to its fair value less cost to sell. The transaction is expected to close during the second quarter of 2023.

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 (4)

Three Months Ended March 31, 2023	Proprietary	CM	Eliminations	Total
Reported net sales (U.S. GAAP)	$583.1	$133.5	$—	$716.6
Effect of changes in currency translation rates	17.8	2.3	—	20.1
Organic net sales (Non-U.S. GAAP) (4)	$600.9	$135.8	$—	$736.7

(4)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 currency 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

	2022 Actual	2023 Guidance	% Change
Reported-diluted EPS (U.S. GAAP)	$7.73	$7.34 to $7.49	(5.0%) to (3.1%)
Restructuring and related charges	0.29
Pension settlement	0.42
Amortization of acquisition-related intangible assets	0.04	0.04
Cost investment activity	0.05
Royalty acceleration	(0.02)
Tax law changes	0.07
Asset impairment for planned sale of plant	—	0.12
Adjusted-diluted EPS (Non-U.S. GAAP) (5)	$8.58	$7.50 to $7.65	(12.6%) to (10.8%)

Notes:

See “Full-year 2023 Financial Guidance” and “Non-U.S. GAAP Financial Measures” in today’s press release for additional information regarding adjusted-diluted EPS.

(5)We have opted not to forecast 2023 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 2023, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.15. Any future tax benefits associated with stock-based compensation that we receive in 2023 would provide a positive adjustment to our full-year EPS guidance. In 2022, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.22.

WEST PHARMACEUTICAL SERVICES

CASH FLOW ITEMS

(UNAUDITED)

(in millions)

	Three Months Ended March 31,
	2023	2022
Depreciation and amortization	$31.6	$29.6
Operating cash flow	$138.1	$151.2
Capital expenditures	$82.1	$65.8
Free cash flow	$56.0	$85.4

WEST PHARMACEUTICAL SERVICES

FINANCIAL CONDITION

(UNAUDITED)

(in millions)

	As of March 31, 2023	As of December 31, 2022
Cash and cash equivalents	$886.3	$894.3
Accounts receivable, net	$513.4	$507.4
Inventories	$447.0	$414.8
Accounts payable	$233.8	$215.4
Debt	$208.3	$208.9
Equity	$2,776.2	$2,684.9
Working capital	$1,402.3	$1,400.5

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

1 First-Quarter 2023 First Quarter Overall Net Sales $716.6M | 0.5% Diluted Earnings Per Share: $1.85 Adjusted Diluted Earnings Per Share: $1.98 Eric M. Green President and Chief Executive Officer Chair of the Board West Pharmaceutical Services, Inc. WST Q1 2023 Earnings 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. “We had a solid start to the year and are reaffirming our full-year organic sales growth outlook. We delivered strong performances in both our Generics and Pharma market units, as our teams are addressing certain longer-lead time factors. Our Biologics market unit had continued growth in base demand; however, these efforts were offset by an expected decline in COVID-19 related sales. Our capital spending program remains on track, and we expect high-value product (HVP) global capacity expansion projects to be completed throughout the rest of the year and in 2024, as we prepare for future demand growth from our customers.”

West Pharmaceutical Services, Inc. Eric M. Green President & CEO, Chair of the Board Bernard J. Birkett Senior VP & Chief Financial and Operations Officer First-Quarter 2023 Analyst Conference Call 9 a.m. Eastern Time | April 27, 2023

3 West Analyst Conference Call 9 a.m. Eastern Time April 27, 2023 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 by asking questions to Management, please register in advance at: https://register.vevent.com/register/BIaaff23c7aa3a4a7688c5 b172cf804930 Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that will be used to access the call. A replay of the conference call and webcast will be available on the Company’s website for 30 days. These presentation materials are intended to accompany today’s press release announcing the Company’s results for the first-quarter 2023 and management’s discussion of those results during today’s conference call. WST Q1 2023 Earnings

4 Safe Harbor Statement 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, operational performance and expectations regarding future events. 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 our “Forward Looking Statements” 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. 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. Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 Non-U.S. GAAP Financial Measures Trademarks and registered trademarks used in this report are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless noted otherwise. Daikyo Crystal Zenith® and Daikyo CZ® are registered trademarks of Daikyo Seiko, Ltd. Daikyo Crystal Zenith technologies are licensed from Daikyo Seiko, Ltd. Trademarks WST Q1 2023 Earnings

6 Financial Highlights WST Q1 2023 Earnings • First quarter 2023 net sales of $716.6 million declined 0.5%; organic net sales growth of 2.3% • First quarter 2023 reported-diluted EPS of $1.85 compared to $2.29 in the same period last year; adjusted-diluted EPS of $1.98 compared to $2.30 in the same period last year

7 Faces of Philanthropy Award recipient for our long-time partnership with Community Volunteers in Medicine (CVIM) Rang the NYSE Opening Bell in honor of West’s 100th year Recipient of Best Aseptic Fill-Finish & Packaging Supplier Award at IMAPAC Opened new R&D Lab in Radnor, PA with competencies to support our capabilities in chemistry, material sciences and biology Launched West Ready Pack™ with Corning® Valor® RTU vials utilizing Stevanato Group’s EZ- fill® technology Introduced Daikyo CZ® 2.25mL insert needle syringe system Recipient of Commitment to Sustainability Award at Invest In Ireland Awards Announced sustainability partnership with NFL Philadelphia Eagles in support of the Field Goal Forest initiative Q1 2023 Business Highlights Recipient of Best Technologies Award at Interphex WST Q1 2023 Earnings

8 Capacity Investments making progress across the Globe Project Start Date Progress 2020-2021 2021-2022 2022-2023-2024 Completed On Track Phase I Phase II Phase III Phase IV Phase V WST Q1 2023 Earnings >Billions of Units of Increased Capacity for our Components 13 Sites Included 690 Pieces of Equipment & Tooling 110 Major Facility Modifications Molding Presses​ Mixing Lines​ Envision​ Autoclaves​ Pharma Wash​ Seal Assemblies

9 2023 Full-Year Guidance WST Q1 2023 Earnings 2023 Full-Year Guidance Consolidated Net Sales $2.965 - $2.990 billion Adjusted-Diluted EPS $7.50 to $7.65

10 First-Quarter 2023 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended March 31 2023 2022 Reported Net Sales $716.6 $720.0 Gross Profit Margin 37.9% 39.5% Reported Operating Profit $155.3 $189.7 Adjusted Operating Profit (1) $164.9 $189.9 Reported Operating Profit Margin 21.7% 26.3% Adjusted Operating Profit Margin (1) 23.0% 26.4% Reported-Diluted EPS $1.85 $2.29 Adjusted-Diluted EPS (1) $1.98 $2.30 “Adjusted Operating Profit,” “Adjusted Operating Profit Margin” and “Adjusted-Diluted EPS” are Non-U.S. GAAP financial measures. See accompanying slides 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. (1) WST Q1 2023 Earnings

11 Overall Organic Net Sales Growth: 2.3% (Q1 2023) Proprietary Products Q1 2023 organic net sales remained flat while sales of high-value products declined 2.3% year over year BIOLOGICS GENERICS PHARMA Sales decline due to reduction in sales related to COVID-19 vaccines Sales led by high-value products, including Westar® components Sales led by high-value products, including Envision® and Westar® components and Admin Systems CONTRACT MANUFACTURING Organic sales growth of 14.4%, led by increase in sales of components related to injection-related devices (Double Digit) High Double-Digit Double DigitLow-Double Digit First-Quarter 2023 Organic Net Sales Growth WST Q1 2023 Earnings

12 Change in Consolidated Net Sales First-Quarter 2022 to 2023 ($ millions) WST Q1 2023 Earnings

13 Gross Profit Update ($ millions) Three Months Ended March 31, 2023 2022 Proprietary Products Gross Profit $247.8 $260.7 Proprietary Products Gross Profit Margin 42.5% 43.4% Contract-Manufactured Products Gross Profit $23.5 $23.9 Contract-Manufactured Products Gross Profit Margin 17.6% 20.1% Consolidated Gross Profit $271.3 $284.6 Consolidated Gross Profit Margin 37.9% 39.5% WST Q1 2023 Earnings

14 Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items YTD Q1 2023 YTD Q1 2022 Depreciation and Amortization $31.6 $29.6 Operating Cash Flow $138.1 $151.2 Capital Expenditures $82.1 $65.8 Free Cash Flow $56.0 $85.4 Financial Condition March 31, 2023 December 31, 2022 Cash and Cash Equivalents $886.3 $894.3 Debt $208.3 $208.9 Equity $2,776.2 $2,684.9 Working Capital $1,402.3 $1,400.5 WST Q1 2023 Earnings

15 Execute. Innovate. Grow. Delivering Unique Value to Customers and Patients Global Operational Effectiveness Across the Network Accelerating Investments for the Future Making a Difference to Patient Health over the next Century WST Q1 2023 Earnings

16 Eric M. Green President and Chief Executive Officer, Chair of the Board Bernard J. Birkett Senior VP and Chief Financial and Operations Officer Quintin Lai VP, Corporate Strategy & Investor Relations Q & A

17 Notes to Non-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. 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. WST Q1 2023 Earnings

18 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”, “Safe Harbor Statement” (Slide 4) 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) Three months ended March 31, 2023 Operating profit Income tax expense Net income Diluted EPS Reported (U.S. GAAP) $155.3 $23.6 $140.0 $1.85 Unallocated items: Amortization of acquisition-related intangible assets 0.2 - 0.7 0.01 Asset impairment for planned sale of plant 9.4 - 9.4 0.12 Adjusted (Non-U.S. GAAP) $164.9 $23.6 $150.1 $1.98 WST Q1 2023 Earnings Three months ended March 31, 2022 Operating profit Income tax expense Net income Diluted EPS Reported (U.S. GAAP) $189.7 $21.2 $173.8 $2.29 Unallocated items: Pension settlement - 0.1 0.5 - Amortization of acquisition-related intangible assets 0.2 - 0.7 0.01 Adjusted (Non-U.S. GAAP) $189.9 $21.3 $175.0 $2.30

19 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”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales to Organic Net Sales (1) ($ millions) 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. (1) Three months ended March 31, 2023 Proprietary CM Eliminations Total Reported net sales (U.S. GAAP) $583.1 $133.5 $- $716.6 Effect of changes in currency translation rates 17.8 2.3 - 20.1 Organic net sales (Non-U.S. GAAP) (1) $600.9 $135.8 $- $736.7 WST Q1 2023 Earnings

20 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”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS Guidance 2022 Actual 2023 Guidance % Change Reported-diluted EPS (U.S. GAAP) $7.73 $7.34 to $7.49 (5.0%) to (3.1%) Restructuring and related charges 0.29 - Pension settlement 0.42 - Amortization of acquisition-related intangible assets 0.04 0.04 Cost investment activity 0.05 - Royalty acceleration (0.02) - Tax law changes 0.07 Asset impairment for planned sale of plant - 0.12 Adjusted-diluted EPS (Non-U.S. GAAP) (1) $8.58 $7.50 to $7.65 (12.6%) to (10.8%) (1) See “Full-year 2023 Financial Guidance” and “Non-U.S. GAAP Financial Measures” in today’s press release for additional information regarding adjusted-diluted EPS. We have opted not to forecast 2023 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 2023, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.15. Any future tax benefits associated with stock-based compensation that we receive in 2023 would provide a positive adjustment to our full-year EPS guidance. In 2022, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.22. WST Q1 2023 Earnings

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Document and Entity Information Document and Entity Information	Apr. 27, 2023
Document and Entity Information [Abstract]
Entity Central Index Key	0000105770
Document Type	8-K
Document Period End Date	Apr. 27, 2023
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