West Pharmaceutical Services (WST) CJS Securities 25th Annual “New Ideas for the New Year” Investor Conference summary

Company Overview and Strategy

• Focuses on integrated containment and delivery of injectable medicines, aiming for global leadership in the injectable space.

• Operates 25 manufacturing sites globally, producing over 40 billion components annually, with ongoing expansions to support growth.

• Portfolio is diversified by geography, product category, and market group, with high-value products (HVP) making up nearly 60% of the portfolio.

• Emphasizes a culture of quality, innovation, and global teamwork, supported by core values of customer passion and quality leadership.

• Advanced ESG initiatives include $4.3 million in giving and 4,700 volunteer hours in 2023.

Financial and Operational Performance

• Q3 2024 net sales were $746.9 million, down 0.1%, with organic net sales down 0.5%.

• Diluted EPS for Q3 2024 was $1.85, down 13.6% (adjusted EPS down 14.4%), impacted by customer destocking.

• Increased Adjusted EPS guidance for the full year, citing strong execution and early traction in long-term growth initiatives.

• High Value Delivery Devices showed strong revenue growth, driven by the launch of the new Phoenix line.

• Biologics represent 38% of revenues, up from 22% in 2016, with contract manufacturing at 20%.

Growth Drivers and Market Trends

• Targets 7%-9% annual revenue growth, driven by volume (1%-2%), price (2%-3%), and mix shift to HVP.

• HVPs, while only 25% of manufacturing volume, account for 75% of revenues due to higher margins.

• Margin expansion of 100 basis points annually is expected, primarily from the shift to HVP.

• Injectable drugs are the fastest-growing drug segment, with biologics and biosimilars as key drivers.

• Near- and mid-term growth driven by biologics, regulatory-driven HVP mix shift, new drug launches, and operational excellence initiatives.