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 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 July 26, 2018, West Pharmaceutical Services, Inc. (the “Company”) issued a press release announcing its second-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 July 26, 2018.
	99.2	West Pharmaceutical Services, Inc. Presentation, dated July 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/ Bernard J. Birkett
	Bernard J. Birkett
	Senior Vice President, Chief Financial Officer and Treasurer
July 26, 2018

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	West Pharmaceutical Services, Inc. Press Release, dated July 26, 2018.
99.2	West Pharmaceutical Services, Inc. Presentation, dated July 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 Second-Quarter 2018 Results

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

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

Executive Summary

• Second-quarter 2018 reported net sales of $447.5 million grew 12.6% over the prior-year quarter. At constant currency, organic sales growth was 9.0%.

• Second-quarter 2018 reported-diluted EPS was $0.75, as compared to $0.51 in the same period last year. Excluding restructuring charges and a non-recurring tax benefit, second-quarter 2018 adjusted-diluted EPS was $0.70, as compared to adjusted-diluted EPS of $0.66 in the same period last year.

• The Company reaffirms full-year 2018 net sales guidance range of $1.720 billion to $1.730 billion and full-year 2018 adjusted-diluted EPS range of $2.80 to $2.90.

• Last week, West officially opened its Waterford, Ireland facility, a global center of excellence for West’s advanced manufacturing network. The Waterford site will also be among the first in West’s global manufacturing network to commercialize Westar^® Select, the latest in its portfolio of high-value product solutions.

“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

“Second-quarter 2018 sales performance was fueled by solid Proprietary Products segment sales, led by double-digit high-value products growth, and robust growth in the Contract-Manufactured Products segment,” said Eric M. Green, President and Chief Executive Officer. “The Generics market unit generated double-digit sales growth and, as expected, the Pharma and Biologics market units had improved sales growth over the first-quarter 2018.

“We expanded both gross profit and reported- and adjusted-operating profit margins. A combination of high-value product sales growth and cost efficiencies more than offset unabsorbed overhead at

our Waterford facility, as well as start-up costs and low-margin tooling sales associated with increasing customer demand in our Contract-Manufactured Products segment.”

Mr. Green concluded, “With a solid second-quarter, we are on track to achieve our full-year 2018 organic sales growth and adjusted earnings targets. Our markets are stable, and West continues to address the needs of our customers by providing the quality, availability and scientific excellence required to support their regulated injectable and diagnostic products.”

Second-Quarter Financial Results (comparisons to prior-year period)

Second-quarter 2018 reported net sales of $447.5 million grew 12.6% over the prior-year quarter. At constant currency, organic sales growth was 9.0%.

Proprietary Products segment organic sales growth was 6.9%. By market unit, second-quarter 2018 Proprietary Products segment sales growth was led by double-digit growth in Generics and high-single digit growth in Pharma, along with low-single digit growth in Biologics. High-value products returned to double-digit organic sales growth, led by solid adoption in the Pharma and Generics market units.

Contract-Manufactured Products segment organic sales growth was 16.9%, despite the loss of a consumer-product contract manufacturing customer in early 2018. This growth was fueled by demand for diagnostic and drug delivery devices, offsetting declines in the mature consumer-product category. Second-quarter 2018 performance also benefited from timing of tooling orders, as well as initial orders from recent competitive takeaways.

Second-quarter 2018 gross profit margin was 31.8%, compared to 31.4% in the same period last year, an increase of 40 basis points. Correlated with double-digit sales of high-value products, Proprietary Products segment gross margin increased year-over-year by 180 basis points, more than offsetting unabsorbed overhead from the start-up of our Waterford facility. Contract-Manufactured Products segment gross margin declined year-over-year by 370 basis points due to unabsorbed overhead from plant consolidation activities and start-up costs associated with the launch of new programs.

The Company has adopted 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 nonoperating income. The Company has restated all prior periods to allow year-over-year comparisons with 2018 performance.

Second-quarter 2018 reported operating profit margin was 13.5%, as compared to 10.6% in the same period last year. Excluding restructuring charges and charges associated with the Venezuela deconsolidation last year, second-quarter 2018 adjusted operating profit margin was 14.0%, compared to 13.4% in the same period last year. Higher gross profit margin, coupled with lower other expense, more than offset moderately higher SG&A expense as a percentage of reported net sales. SG&A expense in the second-quarter 2018 was higher than the same period last year due to increased accruals for incentive compensation and the impact of changes in foreign currency exchange rates.

For the second-quarter 2018, reported income tax expense was $6.0 million, representing a reported effective tax rate of 9.9%. Excluding benefits associated with a reduction in the estimated liability that we recorded in 2017 in anticipation of U.S. tax reform and the impact of restructuring charges, the adjusted income tax expense in the quarter was $11.4 million. Tax benefits from stock-based compensation were $3.4 million in the second-quarter 2018, as compared to $9.6 million in the same period last year. Excluding tax benefits from stock-based compensation and restructuring and related charges, the adjusted income tax rate would have been 24% in the second-quarter 2018.

During the second-quarter 2018, the Company repurchased 260,000 shares of common stock at a cost of $22.9 million under its share repurchase program. The second-quarter 2018 repurchase completes the 800,000 share repurchase program authorized by our Board of Directors.

Full-Year 2018 Financial Guidance

The Company reaffirms full-year 2018 net sales guidance range of $1.720 billion to $1.730 billion. The Company assumes an expected translation exchange rate of $1.15 per Euro for the second half of 2018, as compared to a prior expectation of $1.20 per Euro.

The Company also reaffirms full-year 2018 adjusted-diluted EPS guidance to be in a range of $2.80 to $2.90. The Company estimates, excluding tax benefits from stock-based compensation, a full-year effective tax rate of 24.5%.

The Company is revising its 2018 capital spending guidance to be in a range of between $120 million and $130 million, as compared to prior guidance of less than $150 million. Successful progress by our Global Operations team in managing our worldwide network of manufacturing plants in a consolidated, comprehensive system is driving efficiencies and better capacity utilization. This also results in lower infrastructure capital spending requirements to support the same future sales and profit growth goals of the Company.

Second-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 6196359.

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, August 2, 2018, by dialing 855-859-2056 (U.S.) or 404-537-3406 (International) and entering conference ID 6196359.

Forward-Looking Statements

Certain forward-looking statements are included in this release. They use such words as “reaffirmed,” “reaffirms,” “will,” “on track,” “achieve,” “expected,” “increasing,” “to be,” “continue,” “continues,” “assumes,” “offsetting,” “estimates,” “revising” 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. 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 financial measures to the comparable GAAP financial measures is included in the accompanying tables.

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

Restructuring and related charges - During the three months ended June 30, 2018, the Company recorded $2.2 million in restructuring and related charges, consisting of $1.3 million for severance charges, $0.3 million for non-cash asset write-downs, and $0.6 million for other charges. During the six months ended June 30, 2018, the Company recorded $5.5 million in restructuring and related charges, consisting of $3.3 million for severance charges, $0.4 million for non-cash asset write-downs, and $1.8 million for other charges. The plan will require restructuring and related charges in the range of $8.0 million to $13.0 million and capital expenditures in the range of $9.0 million to $14.0 million. Once fully completed, we expect that the plan will provide the Company with annualized savings in the range of $17.0 million to $22.0 million.

Tax law changes - During the three and six months ended June 30, 2018, the Company recorded a net tax benefit of $4.8 million to reflect a reduction to its one-time mandatory deemed repatriation tax of post-1986 undistributed foreign subsidiary earnings and profits. In April 2018, the U.S. Internal Revenue Service issued guidance, which provided that certain foreign taxes accrued by specified corporations in the toll tax year reduce post-1986 earnings and profits. In addition, during the six months ended June 30, 2018, the Company recorded a net tax charge of $0.3 million to adjust its estimated impact of the 2017 Tax Act. During the three and twelve months ended December 31, 2017, the Company had recorded a provisional charge for the estimated impact of the 2017 Tax

Act, based upon its then-current understanding of the 2017 Tax Act and the guidance available at the time. The Company will continue to actively monitor the developments relating to the 2017 Tax Act and will adjust its estimate as necessary during the one-year measurement period.

Venezuela deconsolidation- During the three and six months ended June 30, 2017, as a result of the continued deterioration of conditions in Venezuela as well as its continued reduced access to U.S. dollar settlement controlled by the Venezuelan government, the Company recorded a charge of $11.1 million related to the deconsolidation of its Venezuelan subsidiary, following its determination that it no longer met the GAAP criteria for control of that subsidiary. As of April 1, 2017, the Company’s consolidated financial statements exclude the results of its Venezuelan subsidiary.

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,
	2018					2017					2018					2017
Net sales	$	447.5		100	%	$	397.6		100	%	$	863.2		100	%	$	785.3		100	%
Cost of goods and services sold	305.3			68		272.6			69		586.6			68		526.1			67
Gross profit	142.2			32		125.0			31		276.6			32		259.2			33
Research and development	10.8			2		10.0			2		20.4			3		20.3			2
Selling, general and administrative expenses	70.0			16		61.3			15		138.3			16		123.8			16
Other expense, net	1.1			—		11.7			3		4.2			—		12.6			2
Operating profit	60.3			14		42.0			11		113.7			13		102.5			13
Interest expense, net	1.9			—		1.9			—		3.2			—		3.7			—
Other nonoperating income	(1.7		)	—		(0.6		)	—		(3.3		)	—		(1.4		)	—
Income before income taxes	60.1			14		40.7			11		113.8			13		100.2			13
Income tax expense	6.0			1		2.9			1		18.5			2		5.1			1
Equity in net income of affiliated companies	(2.0		)	—		(1.0		)	—		(4.4		)	—		(4.6		)	1
Net income	$	56.1		13	%	$	38.8		10	%	$	99.7		11	%	$	99.7		13	%
Net income per share:
Basic	$	0.76				$	0.53				$	1.35				$	1.35
Diluted	$	0.75				$	0.51				$	1.33				$	1.32
Average common shares outstanding	73.6					73.9					73.8					73.6
Average shares assuming dilution	75.0					75.8					75.2					75.7

WEST PHARMACEUTICAL SERVICES REPORTING SEGMENT INFORMATION (UNAUDITED) (in millions)
	Three Months Ended June 30,						Six Months Ended June 30,
Net Sales:	2018			2017			2018			2017
Proprietary Products	$	346.0		$	312.8		$	672.2		$	621.6
Contract-Manufactured Products	101.5			84.9			191.0			164.0
Eliminations	—			(0.1		)	—			(0.3		)
Consolidated Total	$	447.5		$	397.6		$	863.2		$	785.3
Operating Profit (Loss):
Proprietary Products	$	71.7		$	56.7		$	134.5		$	121.8
Contract-Manufactured Products	9.0			10.5			18.5			19.3
U.S. pension expense	(2.3		)	(2.3		)	(4.7		)	(4.6		)
Stock-based compensation expense	(6.0		)	(5.5		)	(9.4		)	(9.0		)
General corporate costs	(9.9		)	(6.3		)	(19.7		)	(13.9		)
Adjusted Operating Profit	$	62.5		$	53.1		$	119.2		$	113.6
Adjusted Operating Profit Margin	14.0		%	13.4		%	13.8		%	14.5		%
Restructuring and related charges	(2.2		)	—			(5.5		)	—
Venezuela deconsolidation	—			(11.1		)	—			(11.1		)
Reported Operating Profit	$	60.3		$	42.0		$	113.7		$	102.5
Reported Operating Profit Margin	13.5		%	10.6		%	13.2		%	13.1		%

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 June 30, 2018	Operating profit		Income tax expense		Net income			Diluted EPS
Reported (GAAP)	$	60.3	$	6.0	$	56.1		$	0.75
Restructuring and related charges	2.2		0.6		1.6			0.01
Tax law changes	—		4.8		(4.8		)	(0.06		)
Adjusted (Non-GAAP)	$	62.5	$	11.4	$	52.9		$	0.70

Six Months Ended June 30, 2018	Operating profit		Income tax expense		Net income			Diluted EPS
Reported (GAAP)	$	113.7	$	18.5	$	99.7		$	1.33
Restructuring and related charges	5.5		1.2		4.3			0.05
Tax law changes	—		4.5		(4.5		)	(0.06		)
Adjusted (Non-GAAP)	$	119.2	$	24.2	$	99.5		$	1.32

Three Months Ended June 30, 2017	Operating profit		Income tax expense		Net income		Diluted EPS
Reported (GAAP)	$	42.0	$	2.9	$	38.8	$	0.51
Venezuela deconsolidation	11.1		—		11.1		0.15
Adjusted (Non-GAAP)	$	53.1	$	2.9	$	49.9	$	0.66

Six Months Ended June 30, 2017	Operating profit		Income tax expense		Net income		Diluted EPS
Reported (GAAP)	$	102.5	$	5.1	$	99.7	$	1.32
Venezuela deconsolidation	11.1		—		11.1		0.15
Adjusted (Non-GAAP)	$	113.6	$	5.1	$	110.8	$	1.47

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

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

(in millions, except per share data)

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

Three Months Ended June 30, 2018	Proprietary			CM			Eliminations		Total
Reported net sales (GAAP)	$	346.0		$	101.5		$	—	$	447.5
Effect of changes in currency translation rates	(11.6		)	(2.4		)	—		(14.0		)
Net sales at constant currency (Non-GAAP)(1)	$	334.4		$	99.1		$	—	$	433.5

Six Months Ended June 30, 2018	Proprietary			CM			Eliminations		Total
Reported net sales (GAAP)	$	672.2		$	191.0		$	—	$	863.2
Effect of changes in currency translation rates	(34.8		)	(6.5		)	—		(41.3		)
Net sales at constant currency (Non-GAAP)(1)	$	637.4		$	184.5		$	—	$	821.9

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

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

	Full-Year 2018 Guidance (2) (3)
Reported-diluted EPS guidance	$2.73 to $2.88
Restructuring and related charges	0.08 to 0.13
Tax law changes	(0.06)
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 $1.15 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)
	Six Months Ended June 30,
	2018		2017
Depreciation and amortization	$	51.9	$	46.8
Operating cash flow	$	127.0	$	106.0
Capital expenditures	$	48.2	$	67.0

WEST PHARMACEUTICAL SERVICES FINANCIAL CONDITION (UNAUDITED) (in millions)
	As of June 30, 2018		As of December 31, 2017
Cash and cash equivalents	$	225.5	$	235.9
Debt	$	196.4	$	197.0
Equity	$	1,281.9	$	1,279.9
Net debt-to-total invested capital(4)	N/A		N/A
Working capital	$	479.3	$	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. Second-Quarter 2018 Analyst Conference Call 9 a.m. Eastern Time, July 26, 2018 ▪ A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com Speakers: ▪ To participate on the call, please dial: Eric M. Green − 877-930-8295 (U.S.) President and Chief Executive Officer − 253-336-8738 (International) − The conference ID is 6196359 Bernard J. Birkett Senior Vice President and Chief Financial Officer ▪ An online archive of the broadcast will be available at the site three hours after the live call and will be available through Thursday, August 2, 2018, by dialing: − 855-859-2056 (U.S.) − 404-537-3406 (International) − The conference ID is 6196359 These presentation materials are intended to accompany today’s press release announcing the Company’s results for the second-quarter 2018 and management’s discussion of those results during today’s conference call. 1 |

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 Second-Quarter Results & Full-Year Outlook ▪ Q2 2018 reported net sales of $447.5 million, representing 9.0% organic sales growth ▪ Q2 2018 adjusted-diluted EPS(1) was $0.70, compared to $0.66 for the same period last year ▪ Q2 2018 tax benefits from stock option exercises resulted in $0.04 of reported and adjusted EPS impact, compared to a $0.13 EPS benefit last year. Excluding these impacts, Q2 2018 adjusted-diluted EPS would have increased by 25% over the same period last year ▪ Reaffirming 2018 financial guidance ‒ Reaffirming full-year 2018 net sales guidance range of $1.720 billion to $1.730 billion ‒ Guidance assumes an expected translation exchange rate of $1.15 per Euro for the second half of the year, versus our prior assumption of $1.20 per Euro ‒ Reaffirming full-year 2018 adjusted-diluted EPS range of $2.80 to $2.90, despite lower-than- expected benefits from translation of foreign exchange rates (1) Please refer to “Notes to Non-GAAP Financial Measures” on slides 14-18, and “Non-GAAP Financial Measures” in today’s press release, for additional information regarding adjusted-diluted EPS. 3 |

Abbreviations: LSD – low-single digit; MSD – mid-single digit; Organic Sales Growth HSD – high-single digit; DD – double digit Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Overall Organic 3.9% 3.7% 4.5% 0.2% 9.0% Sales Growth Biologics MSD MSD* DD (LSD) LSD Generics (MSD) LSD HSD HSD DD Pharma HSD* (MSD)* (MSD)* (HSD) HSD Contract DD DD DD HSD DD Manufacturing * 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. 4 |

First-Half 2018 Product Innovation Highlights ▪ TM AccelTRA Component Program recognized TM at Innopack 2018 with India Packaging Award ▪ SelfDose® Injector recognized at MD&M East Conference with Silver Medical Design Excellence Award ▪ Westar® Select launch announced in July – latest in high value product portfolio produced in newly opened Waterford, Ireland facility 5 |

2018 YTD Scientific & Technical Engagement ~900 >150 ~25 Technical ~70 Customer Requests Customer Conference Patents Regulatory Filing Audits Presentations Issued Assistance 6 |

Global Operations Driving Efficiencies ▪ “One West” Management System driving more efficient Waterford, Ireland Site operations ₋ Puerto Rico site scaling up to manufacture additional volume for hospital administration product portfolio ₋ Lead times continue to improve across manufacturing sites ₋ Global network optimization and restructuring program on track ₋ Efficiencies resulting in capex spending reductions ▪ New Waterford, Ireland site opened in July, to serve as second source for insulin sheeting and HVP production 7 |

Second-Quarter 2018 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended June 30, 2018 2017 Reported Net Sales $447.5 $397.6 Net Sales at Constant Currency (1) $433.5 $397.6 Gross Profit Margin 31.8% 31.4% Reported Operating Profit $60.3 $42.0 Adjusted Operating Profit (1) $62.5 $53.1 Reported Diluted EPS $0.75 $0.51 Adjusted Diluted EPS (1) $0.70 $0.66 (1) “Net sales at constant currency”, “adjusted operating profit”, and “adjusted diluted EPS” are Non-GAAP measures. See slides 14-18 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. 8 |

Change in Consolidated Net Sales Second-quarter 2017 to 2018 ($ millions) $6.8 $14.0 $29.1 $447.5 $397.6 2017 Volume & Mix Currency Sales Price 2018 9 |

Change in Gross Profit Margin % Second-quarter 2017 to 2018 0.6% 1.2% 1.7% (0.4%) (1.0%) Waterford (2.7%) 31.8% 31.4% 2017 Efficiency Sales Price Volume & Mix Raw Material Plant OH & 2018 Other Proprietary (77% of Net Sales) Gross Margin improved to 37.2%, an increase of 180 basis points. 10 |

Change in SG&A Costs Second-quarter 2017 to 2018 ($ millions) $1.6 $1.3 $2.6 $3.2 $70.0 15.6% of Net Sales $61.3 15.4% of Net Sales 2017 Incentive Bonus Other Other Comp & Currency 2018 Benefits Translation 11 |

Cash Flow and Balance Sheet Metrics ($ millions) CASH FLOW ITEMS (UNAUDITED) (in millions) Six Months Ended June 30, 2018 2017 Depreciation and amortization $51.9 $46.8 Operating cash flow $127.0 $106.0 Capital expenditures $48.2 $67.0 FINANCIAL CONDITION (UNAUDITED) (in millions) As of As of June 30, 2018 December 31, 2017 Cash and cash equivalents $225.5 $235.9 Debt $196.4 $197.0 Equity $1,281.9 $1,279.9 Net debt-to-total invested capital N/A N/A Working capital $479.3 $464.0 12 |

Full-Year 2018 Guidance ▪ Reaffirming full-year 2018 reported net sales guidance range of $1.720 billion to $1.730 billion* ▪ Reaffirming full-year 2018 adjusted-diluted EPS range of $2.80 to $2.90(1)(2) ▪ Capital expenditures are expected to be in a range between $120 million to $130 million, compared to prior guidance of less than $150 million * Using an exchange rate of $1.15 per Euro for the second half of 2018 (1) Please refer to “Notes to Non-GAAP Financial Measures” on slides 14-18, and “Non-GAAP Financial Measures” in today’s press release, for additional information regarding adjusted-diluted EPS. (2) Guidance excludes possible costs and benefits from the announced Global Operations restructuring plan and the impact of tax law changes. 13 |

Notes to Non-GAAP Financial Measures For additional details, please see today’s press release & Safe Harbor Statement 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. 14 |

Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-18), “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 ($ million, except EPS data) Operating Income tax Net Diluted Three months ended June 30, 2018 profit expense income EPS Reported (GAAP) $60.3 $6.0 $56.1 $0.75 Restructuring and related charges 2.2 0.6 1.6 0.01 Tax law changes - 4.8 (4.8) (0.06) Adjusted (Non-GAAP) $62.5 $11.4 $52.9 $0.70 Operating Income tax Net Diluted Six months ended June 30, 2018 profit expense income EPS Reported (GAAP) $113.7 $18.5 $99.7 $1.33 Restructuring and related charges 5.5 1.2 4.3 0.05 Tax law changes - 4.5 (4.5) (0.06) Adjusted (Non-GAAP) $119.2 $24.2 $99.5 $1.32 15 |

Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-18), “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 ($ million, except EPS data) Operating Income tax Net Diluted Three months ended June 30, 2017 profit expense income EPS Reported (GAAP) $42.0 $2.9 $38.8 $0.51 Venezuela deconsolidation 11.1 - 11.1 0.15 Adjusted (Non-GAAP) $53.1 $2.9 $49.9 $0.66 Operating Income tax Net Diluted Six months ended June 30, 2017 profit expense income EPS Reported (GAAP) $102.5 $5.1 $99.7 $1.32 Venezuela deconsolidation 11.1 - 11.1 0.15 Adjusted (Non-GAAP) $113.6 $5.1 $110.8 $1.47 16 |

Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-18), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales to Net Sales at Constant Currency (1) ($ million, except EPS data) Three months ended June 30, 2018 Proprietary CM Eliminations Total Reported net sales (GAAP) $346.0 $101.5 $ - $447.5 Effect of changes in currency translation rates (11.6) (2.4) - (14.0) Net sales at constant currency (Non-GAAP) (1) $334.4 $99.1 $ - $433.5 Six months ended June 30, 2018 Proprietary CM Eliminations Total Reported net sales (GAAP) $672.2 $191.0 $ - $863.2 Effect of changes in currency translation rates (34.8) (6.5) - (41.3) Net sales at constant currency (Non-GAAP) (1) $637.4 $184.5 $ - $821.9 (1) Net sales at constant currency translates the current-period reported sales of subsidiaries whose functional currency is other than the U.S. Dollar at the applicable foreign exchange rates in effect during the comparable prior-year period. 17 |

Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-18), “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 Full Year 2018 Guidance(1) (2) Reported-diluted EPS guidance $2.73 to $2.88 Restructuring and related charges 0.08 to 0.13 Tax law changes (0.06) Adjusted-diluted EPS guidance $2.80 to $2.90 (1) Please refer to “Notes to Non-GAAP Financial Measures” on slides 14-18, 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 $1.15 for the second half of 2018. Actual results will vary as a result of exchange rate variability. 18 |