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 26, 2018

WEST PHARMACEUTICAL SERVICES, INC.

(Exact name of registrant as specified in its charter)

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

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

Not Applicable

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

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

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

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

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

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

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

Emerging growth company ¨

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

Item 2.02 Results of Operations and Financial Condition.

On April 26, 2018, West Pharmaceutical Services, Inc. (the “Company”) issued a press release announcing its first-quarter 2018 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 26, 2018.
	99.2	West Pharmaceutical Services, Inc. Presentation, dated April 26, 2018.

2

SIGNATURE

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

	WEST PHARMACEUTICAL SERVICES, INC.
	/s/ William J. Federici
	William J. Federici
	Senior Vice President and Chief Financial Officer
April 26, 2018

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	West Pharmaceutical Services, Inc. Press Release, dated April 26, 2018.
99.2	West Pharmaceutical Services, Inc. Presentation, dated April 26, 2018.

4

EX-99.1

Exhibit 99.1

Investor Contact:

Quintin Lai

Vice President, Investor Relations

(610) 594-3318

Quintin.Lai@westpharma.com

West Announces First-Quarter 2018 Results

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

Exton, PA, April 26, 2018 – West Pharmaceutical Services, Inc. (NYSE: WST) today announced its financial results for the first-quarter 2018 and reaffirmed financial guidance for full-year 2018.

Executive Summary

• First-quarter 2018 reported net sales of $415.7 million grew 7.2% over the prior-year quarter. At constant currency, organic sales growth was 0.2%.

• First-quarter 2018 reported-diluted EPS was $0.58. Excluding restructuring and other costs, first-quarter 2018 adjusted-diluted EPS was $0.62, as compared to $0.81 in the prior-year quarter. Tax benefits associated with share-based payment transactions were $0.03 in the first-quarter 2018, below our expectations of approximately $0.05 and below the $0.21 impact in the same quarter last year.

• The Company is reaffirming full-year 2018 net sales guidance range of $1.720 billion to $1.730 billion. This assumes a translation exchange rate of $1.20 per Euro, unchanged from prior guidance. This represents a conservative assumption given current spot rates.

• The Company continues to expect 2018 organic sales growth to be within a range of 6% to 8%.

• The Company is reaffirming full-year 2018 adjusted-diluted EPS range of $2.80 to $2.90.

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

Executive Commentary

“Our first-quarter 2018 results were in line with our expectations given the headwinds that we addressed in our last earnings release,” said Eric M. Green, President and Chief Executive Officer. “We were pleased to see continued momentum in our Generics market unit and our Contract-Manufactured Products segment. After experiencing customer inventory management issues for much of 2017, our Generics team posted high-single digit organic sales growth, representing the third consecutive quarter of accelerating performance. Contract-Manufactured

Products again saw strong growth led by diagnostic devices and injection devices associated with diabetes.

Mr. Green concluded, “We are reaffirming our full-year 2018 financial guidance. We anticipate accelerating organic sales growth over the remainder of the year, as the order flow in our Pharma market unit is expected to follow a similar pattern of improvement that we are experiencing in our Generics market unit. We continue to be the leader in the containment and delivery of injectable biologics and expect a return to normal long-term growth rates in the back half of the year. With sales growth returning to expected levels, gross and operating profit margins should improve as well. We remain on track for initial commercial sales from our Waterford facility later this year and are adding manufacturing capacity to address a growing demand for our administration systems.”

First-Quarter 2018 Financial Results (comparisons to prior-year period)

First-quarter 2018 reported net sales of $415.7 million grew 7.2% over the prior-year quarter. At constant currency, organic sales growth was 0.2%. The deconsolidation of operations in Venezuela and the loss of a consumer-product contract manufacturing customer negatively impacted organic sales growth by 390 basis points.

Proprietary Products segment organic sales declined by 1.8%. The impact from the Venezuela deconsolidation negatively affected organic sales growth by 310 basis points. By market unit, first-quarter 2018 Proprietary Products segment sales growth was led by high-single digit growth in Generics, offset by a low-single digit decline in Biologics and a high-single digit decline in Pharma. The Pharma market unit experienced strong growth in the first-quarter last year, which made for an unfavorable growth comparison in Q1 2018. Contract-Manufactured Products segment organic sales growth was 7.9%, despite the loss of a consumer-product contract manufacturing customer.

First-quarter 2018 gross profit margin was 32.3%, compared to 34.6% in the same period last year, a decline of 230 basis points. Two main drivers of this decline were the deconsolidation of Venezuelan operations and the loss of a consumer-product contract manufacturing customer, which cumulatively accounted for $10.7 million of gross profit in the first quarter of last year and adversely affected gross profit margin by 150 basis points. Additionally, under-absorbed overhead from our Waterford facility more than offset gross profit margin improvement from higher efficiencies and price increases.

Effective January 1, 2018, the Company adopted the new accounting rules, which require an acceleration of the timing of revenue recognition on the sale of certain products and tooling agreements in both segments of our business. The cumulative effect had an immaterial negative impact to first-quarter 2018 net sales of $3 million. For the full-year 2018, the Company expects a reduction of $6 million to expected net sales.

The Company has also adopted the new rules for pension accounting. Instead of recognizing pension gains or losses in the “Selling, general and administrative expenses” line on the income statement, these gains or losses are now located “below the line” in non-operating income. The

Company has restated Q1 2017 and full-year 2017 results to allow year-over-year comparisons with 2018 performance. The impact on the first-quarter 2018 from this pension accounting change was the reclassification of $1.6 million to Other Non-Operating Income. For the full-year 2018, we estimate that the total reclassification will be approximately $7 million.

In February 2018, the Company announced a restructuring program, expected to be implemented over the following twelve to twenty-four months, that will help streamline our manufacturing plant network and enable us to make investments to drive our high-value proprietary products and healthcare-related contract manufacturing business, and drive margin expansion. The plan will require restructuring expense in the range of $8.0 million to $13.0 million and capital expenditures in the range of $9.0 million to $14.0 million. Once fully completed, we expect that the plan will provide the Company with annualized savings in the range of $17.0 million to $22.0 million. During the three months ended March 31, 2018, the Company recorded $3.3 million in restructuring and related charges.

First-quarter 2018 operating profit margin was 12.8%. On an adjusted basis (excluding restructuring and related charges), operating profit margin was 13.6%, compared to 15.6% in the same period last year. The decline was primarily caused by lower gross profit margin.

For the first-quarter 2018, income tax expense was $12.5 million. Excluding restructuring costs and a net tax charge related to U.S. tax reform, the adjusted effective tax rate was 22.5%, compared to 3.6% in the same period last year. Tax benefits from stock-based compensation were $2.1 million in the first-quarter 2018 as compared to $15.9 million in the same period last year. Excluding benefits from stock-based payments, the effective tax rate was 26.3% as compared to 30.2% last year, which reflects the lower U.S. tax rate enacted at the end of 2017.

During the first-quarter 2018, the Company repurchased 540,000 shares of common stock at a cost of $47.9 million under its buyback program. There are up to 260,000 additional shares available to be repurchased under the program authorized by our Board of Directors that expires in December 2018.

Full-Year 2018 Financial Guidance

The Company continues to expect 2018 organic sales growth to be within our long-term projected 6-8% range. Excluding sales that will not recur in 2018 ($32.6 million of 2017 sales will not recur in 2018 due to the loss of a consumer-product contract manufacturing customer and deconsolidation of our Venezuelan operations), the Company expects 2018 organic sales growth to be at the higher end of that range.

The Company is reaffirming full-year 2018 net sales guidance range of $1.720 billion to $1.730 billion. This assumes a translation exchange rate of $1.20 per Euro. Given recent volatility in currency exchange rates, the Company believes it is prudent to use a conservative exchange. Full-year 2018 adjusted-diluted EPS is expected to be in a range of $2.80 to $2.90.

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

First-Quarter Conference Call

The Company will host a conference call to discuss the results and business expectations at 9:00 a.m. Eastern Time today. To participate on the call please dial 877-930-8295 (U.S.) or 253-336-8738 (International). The conference ID is 9889627.

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 3, 2018, by dialing 855-859-2056 (U.S.) or 404-537-3406 (International) and entering conference ID 9889627.

Forward-Looking Statements

Certain forward-looking statements are included in this release. They use such words as “expected,” “continue,” “increase,” “will,” “estimated,” “believe,” “expect,” “estimate,” “see,” “continued,” “anticipate,” “remain,” and other similar terminology. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this release. There is no certainty that actual results will be achieved in-line with current expectations. These forward-looking statements involve a number of risks and uncertainties. The following are some of the factors that could cause our actual results to differ materially from those expressed in or underlying our forward-looking statements: customers’ changing inventory requirements and manufacturing plans; customer decisions to move forward with our new products and product categories; average profitability, or mix, of the products we sell; dependence on third-party suppliers and partners; interruptions or weaknesses in our supply chain; increased raw material costs; fluctuations in currency exchange; and the ability to meet development milestones with key customers. This list of important factors is not all inclusive. For a description of certain additional factors that could cause the Company’s future results to differ from those expressed in any such forward-looking statements, see Item 1A, entitled “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

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

Non-GAAP Financial Measures

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

• Net sales at constant currency (organic sales growth)

• Adjusted operating profit

• Adjusted operating profit margin

• Adjusted income tax expense

• Adjusted net income

• Adjusted diluted EPS

• Net debt

• Total invested capital

• Net debt-to-total invested capital

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

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

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

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

Restructuring and related charges - During the three months ended March 31, 2018, the Company recorded $3.3 million in restructuring and related charges, consisting of $2.0 million for severance charges, $0.1 million for non-cash asset write-downs, and $1.2 million for other non-cash charges.

Tax law changes - During the three months ended March 31, 2018, following additional analysis, the Company recorded a net tax charge of $0.3 million for the estimated impact of U.S. tax reform. During the three and twelve months ended December 31, 2017, the Company had recorded a provisional charge for the estimated impact of U.S. tax reform, based upon its then-current understanding of the U.S. tax reform and the guidance available at the time. The Company will continue to actively monitor the developments relating to U.S. tax reform, and will adjust its estimate as necessary during the one-year measurement period.

WEST PHARMACEUTICAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in millions, except per share data)
	Three Months Ended March 31,
	2018					2017
Net sales	$	415.7		100	%	$	387.7		100	%
Cost of goods and services sold	281.3			68		253.5			65
Gross profit	134.4			32		134.2			35
Research and development	9.6			2		10.3			3
Selling, general and administrative expenses	68.3			16		62.5			16
Other expense, net	3.1			1		0.9			—
Operating profit	53.4			13		60.5			16
Interest expense, net	1.3			—		1.8			—
Other nonoperating income	(1.6		)	—		(0.8		)	—
Income before income taxes	53.7			13		59.5			16
Income tax expense	12.5			3		2.2			1
Equity in net income of affiliated companies	(2.4		)	—		(3.6		)	1
Net income	$	43.6		10	%	$	60.9		16	%
Net income per share:
Basic	$	0.59				$	0.83
Diluted	$	0.58				$	0.81
Average common shares outstanding	73.9					73.3
Average shares assuming dilution	75.5					74.9

WEST PHARMACEUTICAL SERVICES REPORTING SEGMENT INFORMATION (UNAUDITED) (in millions)
	Three Months Ended March 31,
Net Sales:	2018			2017
Proprietary Products	$	326.2		$	308.8
Contract-Manufactured Products	89.5			79.1
Eliminations	—			(0.2		)
Consolidated Total	$	415.7		$	387.7
Operating Profit (Loss):
Proprietary Products	$	62.8		$	65.1
Contract-Manufactured Products	9.5			8.8
U.S. pension expense	(2.4		)	(2.3		)
Stock-based compensation expense	(3.4		)	(3.5		)
General corporate costs	(9.8		)	(7.6		)
Adjusted Operating Profit	$	56.7		$	60.5
Adjusted Operating Profit Margin	13.6		%	15.6		%
Restructuring and related charges	(3.3		)	—
Reported Operating Profit	$	53.4		$	60.5
Reported Operating Profit Margin	12.8		%	15.6		%

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

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

(in millions, except per share data)

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

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	3.3		0.6			2.7		0.03
Tax law changes	—		(0.3		)	0.3		0.01
Adjusted (Non-GAAP)	$	56.7	$	12.8		$	46.6	$	0.62

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

Three months ended March 31, 2018	Proprietary			CM			Eliminations		Total
Reported net sales (GAAP)	$	326.2		$	89.5		$	—	$	415.7
Effect of changes in currency translation rates	(23.2		)	(4.1		)	—		(27.3		)
Net sales at constant currency (Non-GAAP)(1)	$	303.0		$	85.4		$	—	$	388.4

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

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

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

(in millions, except per share data)

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

	Full-Year 2018 Guidance (2) (3)
Reported-diluted EPS guidance	$2.66 to $2.81
Restructuring and related charges	0.08 to 0.13
Tax law changes	0.01
Adjusted-diluted EPS guidance	$2.80 to $2.90

⁽²⁾ See “Full-Year 2018 Financial Guidance” and “Non-GAAP Financial Measures” in today’s press release for additional information regarding adjusted-diluted EPS.

⁽³⁾ Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.20 for the remainder of 2018. Actual results will vary as a result of exchange rate variability.

WEST PHARMACEUTICAL SERVICES CASH FLOW ITEMS (UNAUDITED) (in millions)
	Three Months Ended March 31,
	2018		2017
Depreciation and amortization	$	26.4	$	23.3
Operating cash flow	$	45.0	$	20.7
Capital expenditures	$	28.0	$	37.5

WEST PHARMACEUTICAL SERVICES FINANCIAL CONDITION (UNAUDITED) (in millions)
	As of March 31, 2018		As of December 31, 2017
Cash and cash equivalents	$	199.8	$	235.9
Debt	$	198.0	$	197.0
Equity	$	1,305.3	$	1,279.9
Net debt-to-total invested capital(4)	N/A		N/A
Working capital	$	480.1	$	464.0

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

Trademark Notices

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

EX-99.2

West Pharmaceutical Services, Inc. First-Quarter 2018 Analyst Conference Call 9 a.m. Eastern Time, April 26, 2018 Speakers: Eric M. Green President and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer  A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com  To participate on the call, please dial: − 877-930-8295 (U.S.) − 253-336-8738 (International) − The conference ID is 9889627  An online archive of the broadcast will be available at the site three hours after the live call and will be available through Thursday, May 3, 2018, by dialing: − 855-859-2056 (U.S.) − 404-537-3406 (International) − The conference ID is 9889627 These presentation materials are intended to accompany today’s press release announcing the Company’s results for the first-quarter 2018 and management’s discussion of those results during today’s conference call.

Safe Harbor Statement Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This presentation and any accompanying management commentary contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about product development and operational performance. Each of these statements is based on preliminary information, and actual results could differ from any preliminary estimates. We caution investors that the risk factors listed under “Cautionary Statement” in our press releases, as well as those set forth under the caption "Risk Factors" in our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission and as revised or supplemented by our quarterly reports on Form 10-Q, could cause our actual results to differ materially from those estimated or predicted in the forward-looking statements. You should evaluate any statement in light of these important factors. Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. Non-U.S. GAAP Financial Measures Certain financial measures included in these presentation materials, or which may be referred to in management’s discussion of the Company’s results and outlook, have not been calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), and therefore are referred to as non-GAAP financial measures. Non-GAAP financial measures should not be considered in isolation or as an alternative to such measures determined in accordance with GAAP. Please refer to “Reconciliation of Non-GAAP Measures” at the end of these materials for more information. Trademarks Registered trademarks used in this report are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless noted otherwise. 2 |

2018 First-Quarter Results & Full-Year Outlook  Q1 reported net sales of $415.7 million, representing 0.2% organic sales growth ‒ Excluding impact of Venezuela deconsolidation & loss of consumer-product contract manufacturing customer, organic sales growth would have been 4.1% ‒ Despite headwinds, Generics market unit and Contract-Manufactured Products segment both grew high-single digits organic sales growth  Q1 adjusted-diluted EPS(1) was $0.62  Q1 2018 tax benefits from stock option exercises resulted in $0.03 of reported and adjusted EPS impact, which was $0.02 lower than our expectation and as communicated on our last call  Reaffirming 2018 financial guidance ‒ Reaffirming full-year 2018 net sales guidance range of $1.720 billion to $1.730 billion. This assumes a translation exchange rate of $1.20 per Euro, unchanged from prior guidance. This represents a conservative assumption given current spot rates. ‒ Expecting 2018 organic sales growth to be within a range of 6% to 8% ‒ Reaffirming full-year 2018 adjusted-diluted EPS range of $2.80 to $2.90 3 | (1) Please refer to “Notes to Non-GAAP Financial Measures” on slides 12-14, and “Non-GAAP Financial Measures” in today’s press release, for additional information regarding adjusted diluted EPS.

Organic Sales Growth 4 | Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Overall Organic Sales Growth 8.7% 3.9% 3.7% 4.5% 0.2% Biologics MSD MSD MSD* DD (LSD) Generics (MSD) (MSD) LSD HSD HSD Pharma DD HSD* (MSD)* (MSD)* (HSD) Contract Manufacturing DD DD DD DD HSD Abbreviations: LSD – low-single digit; MSD – mid-single digit; HSD – high-single digit; DD – double digit * Represents a reclassification of certain customer sales. This reclassification had no impact on 2017 overall organic sales growth or Proprietary Products segment organic sales growth.

 Improved results in service & quality to customers ₋ Lead times continue to improve across manufacturing sites ₋ Key customer supply chain partnership progressing ₋ Global network optimization & restructuring program on track  New Waterford, Ireland site producing commercial sales in 2018 Global Operations Update 5 | Waterford, Ireland Site

6 | First-Quarter 2018 Summary Results ($ millions, except earnings-per-share (EPS) data) (1) “Net sales at constant currency”, “adjusted operating profit”, and “adjusted diluted EPS” are Non-GAAP measures. See slides 12-14 and the discussion under the heading “Non-GAAP Financial Measures” in today’s press release for an explanation and reconciliation of these items. Except as noted, statements in these slides concerning comparative sales are measured on a constant currency basis. Three Months Ended March 31, 2018 2017 Reported Net Sales $415.7 $387.7 Net Sales at Constant Currency (1) $388.4 $387.7 Gross Profit Margin 32.3% 34.6% Reported Operating Profit $53.4 $60.5 Adjusted Operating Profit (1) $56.7 $60.5 Reported Diluted EPS $0.58 $0.81 Adjusted Diluted EPS (1) $0.62 $0.81

$27.3 $10.5 $4.9 $387.7 2017 Currency Volume & Mix Sales Price Venezuela / Consumer 2018 $415.7 * Change in Consolidated Net Sales First-quarter 2017 to 2018 ($ millions) 7 | * Includes $3 million revenue reduction related to the adoption of new accounting guidance in Q1 2018. ($14.7)

32.3% (0.4%) (1.2%) (1.5%) (1.5%) 1.5% 0.8% 34.6% 2017 Efficiency Sales Price Raw Material Volume & Mix Plant OH & Other Venezuela / Consumer 2018 Change in Gross Profit Margin % First-quarter 2017 to 2018 8 |

Change in SG&A Costs First-quarter 2017 to 2018 ($ millions) $68.3 $1.8 $2.6 $2.3 $1.9 $0.8 $62.5 2017 Comp and Benefits Currency Translation Outside Services Other Venezuela 2018 16.1% of Net Sales 16.4% of Net Sales 9 |

Cash Flow and Balance Sheet Metrics ($ millions) 10 | CASH FLOW ITEMS (UNAUDITED) (in millions) FINANCIAL CONDITION (UNAUDITED) (in millions) Three Months Ended March 31, 2018 2017 Depreciation and amortization $26.4 $23.3 Operating cash flow $45.0 $20.7 Capital expenditures $28.0 $37.5 As of March 31, 2018 As of December 31, 2017 Cash and cash equivalents $199.8 $235.9 Debt $198.0 $197.0 Equity $1,305.3 $1,279.9 Net debt-to-total invested capital N/A N/A Working capital $480.1 $464.0

Full-Year 2018 Guidance  Reaffirming full-year 2018 reported net sales guidance range of $1.720 billion to $1.730 billion*  No change in full-year 2018 net sales organic growth guidance of 6-8% range ‒ Excluding 2017 net sales that will not recur in 2018, constant-currency sales growth is expected to be at the higher end of that 6-8% range  Reaffirming full-year 2018 adjusted-diluted EPS range of $2.80 to $2.90(1,2) ‒ This includes an estimated positive EPS impact from tax benefits from stock-based compensation 11 | * Using an exchange rate of $1.20 per Euro (1) Please refer to “Notes to Non-GAAP Financial Measures” on slides 12-14, and “Non-GAAP Financial Measures” in our Q1 2018 press release, for additional information regarding adjusted diluted EPS. (2) Guidance excludes possible cost and benefits from the announced Global Operations restructuring plan and the impact of tax law changes.

Today’s press release, these presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally accepted accounting principles (GAAP) accepted in the U.S., and therefore are referred to as non-GAAP financial measures:  Net sales at constant currency (organic sales)  Adjusted operating profit  Adjusted operating profit margin  Adjusted net income  Adjusted income tax expense  Adjusted diluted EPS  Net debt  Total invested capital  Net debt to total invested capital West believes that these non-GAAP measures of financial results provide useful information to management and investors regarding business trends, results of operations, and the Company’s overall performance and financial position. Our executive management team uses these financial measures to evaluate the performance of the Company in terms of profitability and efficiency, to compare operating results to prior periods, to evaluate changes in the operating results of each segment, and to measure and allocate financial resources to our segments. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing its financial measures with other companies. Our executive management does not consider such non-GAAP measures in isolation or as an alternative to such measures determined in accordance with GAAP. The principal limitation of these financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded. In order to compensate for these limitations, non-GAAP financial measures are presented in connection with GAAP results. We urge investors and potential investors to review the reconciliations of our non-GAAP financial measures to the comparable GAAP financial measures, and not to rely on any single financial measure to evaluate the Company’s business. Net sales at constant currency translates the current-period reported sales of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in effect during the comparable prior-year period. In calculating adjusted operating profit, adjusted income tax expense, adjusted net income and adjusted diluted EPS, we exclude the impact of items that are not considered representative of ongoing operations. Such items generally include restructuring and related costs, certain asset impairments, other specifically identified gains or losses, and discrete income tax items. Please see “Financial Guidance” and “Non-GAAP Financial Measures” in today’s press release for further information concerning reconciling items. Notes to Non-GAAP Financial Measures For additional details, please see today’s press release & Safe Harbor Statement 12 |

Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 12-14), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 13 | Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ million, except EPS data) 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 3.3 0.6 2.7 0.03 Tax law changes - (0.3) 0.3 0.01 Adjusted (Non-GAAP) $56.7 $12.8 $46.6 $0.62 Reconciliation of Net Sales to Net Sales at Constant Currency (1) ($ million, except EPS data) Three months ended March 31, 2018 Proprietary CM Eliminations Total Reported net sales (GAAP) $326.2 $89.5 $ - $415.7 Effect of changes in currency translation rates (23.2) (4.1) - (27.3) Net sales at constant currency (Non-GAAP) (1) $303.0 $85.4 $ - $388.4 (1) Net sales at constant currency translates the current-period reported sales of subsidiaries whose functional currency is other than the U.S. Dollar at the applicable foreign exchange rates in effect during the comparable prior-year period.

14 | Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS guidance Full Year 2018 Guidance(1) (2) Reported-diluted EPS guidance $2.66 to $2.81 Restructuring and related charges 0.08 to 0.13 Tax law changes 0.01 Adjusted-diluted EPS guidance $2.80 to $2.90 (1) Please refer to “Notes to Non-GAAP Financial Measures” on slides 12-14, and “Non-GAAP Financial Measures” in today’s press release, for additional information regarding adjusted diluted EPS. (2) Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.20 for the remainder of 2018. Actual results will vary as a result of exchange rate variability. Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 12-14), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items.