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Second Quarter 2013
Earnings Presentation
Dr. Ge Li, Chairman and CEO
Edward Hu, COO and CFO
Cautionary Note Regarding Forward-Looking Statements
This presentation contains "forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements
are not historical facts, but instead are predictions about future events.
Examples of forward-looking statements in this presentation include statements
about our third-quarter and full-year 2013 guidance, the goals and growth of our
various service offerings and the prospects of our strategic partnerships.
Although we believe that our predictions are reasonable, future events are
inherently uncertain and our forward-looking statements may turn out to be
incorrect. Our forward-looking statements are subject to risks relating to, among
other things, our ability to increase volume for our chemistry service offerings, to
meet timelines for the expansion of our biologics service offerings, to realize the
anticipated benefits of our strategic partnerships, to protect our clients’
intellectual property, and to compete effectively. Additional information about
these and other relevant risks can be found in our Annual Report on Form 20-F
for the year ended December 31, 2012. The forward-looking statements in this
presentation speak only as of the date on which they are made, and we assume
no obligation to update any forward-looking statements except as required by
law.
2
We have provided the second-quarter and first-half 2012 and 2013 gross profit, gross
margin, operating income, operating margin, net income, net margin, and earnings
per ADS on a non-GAAP basis, which excludes share-based compensation expenses
and the amortization and deferred tax impact of acquired intangible assets. We
believe both management and investors benefit from referring to these non-GAAP
financial measures in assessing our financial performance and liquidity and when
planning and forecasting future periods. These non-GAAP operating measures are
useful for understanding and assessing underlying business performance and
operating trends. We expect to continue to provide net income and earnings per
ADS on a non-GAAP basis using a consistent method on a quarterly basis.
You should not view non-GAAP results on a stand-alone basis or as a substitute for
results under GAAP, or as being comparable to results reported or forecasted by
other companies, and should refer to the reconciliation of GAAP measures to non-
GAAP measures for the indicated periods in this presentation.
Use of Non-GAAP and Pro-Forma Financial Measures
3
 Revenues grew 9.2% year over year, led by 18.6% growth in China-
based Laboratory Services
 Costs were well-controlled through continuous operational
improvements, increased productivity, and company-wide
implementation of Lean Sigma programs
 Gross margins and operating margins were in line with recent
quarters and comparable to 2Q12
 GAAP diluted EPS grew 45.5% to $0.41, driven by revenue growth,
cost control, and non-operational factors
 We exceeded our 2Q13 revenue and diluted EPS guidance
Second Quarter Overview
4
 Biologics services achieved strong revenue growth in 2Q13 and will be
one of the key drivers of revenue and earnings growth for the next
several years
 The pipeline of small-molecule commercial manufacturing opportunities
continues to grow
 WuXiPRA, our clinical services joint venture with PRA, was established
and Dr. James Pusey was named President and General Manager
 On the basis of this strong quarter, we increased full-year 2013 guidance
• Revenue guidance increased from $565-$575 million to $572-$578 million
• GAAP diluted EPS guidance increased from $1.26-$1.30 to $1.38-$1.44
• Non-GAAP diluted EPS guidance increased from $1.49-$1.53 to $1.61-$1.67
Second Quarter Overview (continued)
5
 Revenue exceeded guidance, driven primarily by higher than
expected revenues in biologics services, manufacturing, and
medicinal chemistry
 Diluted EPS also exceeded guidance, driven by revenue growth, gross
margin improvement, larger mark-to-market gains on foreign-
exchange forward contracts, and lower tax expense
Second-Quarter 2013 Performance Versus Guidance
Actual Guidance
Total Revenues $142.3 million $138-140 million
GAAP Diluted EPS $0.41 $0.34-$0.35
Non-GAAP Diluted EPS $0.46 $0.39-$0.40
6
Second-Quarter 2013 Revenue Summary
(US$ in millions)
Second Quarter
2013 2012 Δ
Total Net Revenue $142.3 $130.4 9.2%
China-Based Laboratory Services $83.4 $70.3 18.6%
U.S.-Based Laboratory Services $22.5 $23.3 (3.2%)
Total Laboratory Services $105.9 $93.6 13.2%
Manufacturing Services $36.4 $36.8 (1.1%)
7
Revenue Performance by Business
2Q12 3Q12 4Q12 1Q13 2Q13
Total Net Revenues
Manufacturing
Services
U.S.-Based
Lab Services
China-Based
Lab Services
$130.4
36.8
23.3
70.3
$125.8
26.9
21.9
77.0
$125.7
21.9
22.3
81.5
$131.9
34.4
23.0
74.5
$142.3
36.4
83.4
22.5
 Total company revenue
was a record
 China Lab Services
continued its strong
growth trend with a
record quarter
 U.S. Lab Services revenue
growth is being impacted
by difficult comparisons
with a strong 2Q12
 Manufacturing Services
revenue was our second
highest ever
8
Second-Quarter 2013 GAAP Financial Summary
(US$ in millions)
Second Quarter
2013 2012
%
Growth
Net Revenue $142.3 $130.4 9.2%
Gross Profit 51.8 46.5 11.3%
Gross Margin 36.4% 35.7%
Operating Income 25.7 23.8 8.1%
Operating Margin 18.1% 18.2%
Net Income 29.6 20.5 44.6%
Effective Tax Rate* 11.6% 16.8%
Weighted Average ADS Outstanding—
Diluted
72,506,783 72,984,759 (0.7%)
Diluted Net Earnings Per ADS 0.41 0.28 45.5%
9* The 2Q13 effective tax rate reflects the mix of taxable income and one-time tax benefits of $2.3 million
GAAP Revenues/Gross Profit/Operating Income
Total Net Revenues
36.8
23.3
70.3
26.9
21.9
77.0
21.9
22.3
81.5
34.4
23.0
74.5
36.4
83.4
22.5
 GAAP gross profit and
operating income were at
record levels
 GAAP gross margin and
operating margin were
within the range of prior
quarters
2Q12 3Q12 4Q12 1Q13 2Q13
$130.4
46.5
23.8
35.7%
Revenues
18.2%
$125.8
46.1
21.5
36.6%
17.0%
$125.7
48.8
23.6
38.8%
18.7%
$131.9
47.4
23.0
36.0%
17.4%
$142.3
51.8
25.7 18.1%
36.4%
10
Gross Profit
/ Margin
Operating
Income / Margin
Second-Quarter 2013 Non-GAAP Financial Summary
(US$ in millions)
Second Quarter
2013 2012
%
Growth
Net Revenue $142.3 $130.4 9.2%
Gross Profit 53.0 48.0 10.2%
Gross Margin 37.2% 36.8%
Operating Income 29.8 27.4 8.8%
Operating Margin 20.9% 21.0%
Net Income 33.7 23.9 41.0%
Effective Tax Rate* 10.4% 15.3%
Weighted Average ADS Outstanding—
Diluted
72,506,783 72,984,759 (0.7%)
Diluted Net Earnings Per ADS 0.46 0.33 41.9%
11* The 2Q13 effective tax rate reflects the mix of taxable income and one-time tax benefits of $2.3 million
Non-GAAP Revenues/Gross Profit/Operating Income
Total Net Revenues
36.8
23.3
70.3
26.9
21.9
77.0
21.9
22.3
81.5
34.4
23.0
74.5
36.4
83.4
22.5
 Stable margin trends similar
to GAAP numbers
2Q12 3Q12 4Q12 1Q13 2Q13
$130.4Revenues $125.8 $125.7
$131.9
$142.3
29.8 20.9%
48.5
26.7
53.0
27.4
50.0
26.6
47.6
27.4
48.0
37.2%
36.8%
20.2%
39.8%
21.8%21.2%
37.8%
21.0%
36.8%
12
Gross Profit
/ Margin
Operating
Income / Margin
Second-Quarter 2013 Revenue Distribution
36.8
23.3
70.3
26.9
21.9
77.0
21.9
22.3
81.5
34.4
74.5
36.4
83.4
22.5
29.8
48.6
26.7
53.0
27.4
50.0
26.6
47.6
27.4
48.0
13
2Q132Q12
China-Based
Lab Services
Medicinal
Chemistry
And Other
Discovery*
27.0%
Development**
15.8%
U.S. Lab
Services
15.8%
Manufacturing
25.6%
*Includes Medicinal Chemistry, Biology, DMPK/ADME, Biological Reagents and others
**Includes Formulation, Analytical Development, Toxicology, Bioanalytical Services, Biologics,
Clinical, and Genomics
Synthetic
Chemistry
17.2%
Medicinal
Chemistry
And Other
Discovery*
26.0%
Development**
10.7%
Manufacturing
28.3%
U.S. Lab
Services
17.8%
Synthetic
Chemistry
15.8%
Factors Impacting 2Q13 Diluted EPS
14
$0.28
$0.41~$.14
(~$.02)
(~$.02)
2Q12
Diluted EPS
2Q13
Diluted EPS
Business
Growth
Investment*
Labor
Inflation
$0.33
$0.46
GAAP
Non-GAAP
Non-GAAP
GAAP
~$.07
(~$.04)
Mark-to-
Market
Gains**
Other FX
Impacts
* Investment includes losses from biologics R&D, biologics manufacturing facilities, JVs with MedImmune and PRA,
and risk sharing projects
** Mark-to-market gains on foreign-exchange forward contracts of $3.0 million were recorded in 2Q13, while mark-
to-market losses of $2.3 million were recorded in 2Q12
Capital Resources and Cash Flow
36.8
23.3
70.3
26.9
21.9
77.0
21.9
22.3
81.5
34.4
74.5
36.4
83.4
22.5
29.8
48.6
26.7
53.0
27.4
50.0
26.6
47.6
27.4
48.0
 Cash and short-term investments of $299.6 million at June 30,
2013
 Total debt (bank loans) of $64.8 million at June 30, 2013
 Operating cash flow of $39.6 million for 2Q13, $79.0 million for
1H13
 Capital expenditures of $8.6 million for 2Q13, $14.6 million for
1H13; we expect full-year 2013 capital expenditures of about $60
million as planned
15
Full-Year 2013 Financial Guidance
New Previous
Total Revenues $572-578 million $565-575 million
Gross and Operating Margins
(GAAP and Non-GAAP)
Comparable to 2012 Comparable to 2012
GAAP Diluted EPS $1.38-$1.44 $1.26-$1.30
Non-GAAP Diluted EPS $1.61-$1.67 $1.49-$1.53
Capital Expenditures About $60 million About $60 million
16
Strong Revenue and Diluted EPS Growth
17
$572-578
$499.9
$407.2
$334.1
(US$ in Millions, except per-ADS amounts)
$270.0
Revenues
GAAP Diluted EPS
Non-GAAP Diluted EPS
$1.38-1.44
$1.61-1.67
2013 Est.
$1.19
$1.40
2012
$1.07
$1.24
2011
$1.22*
$1.09
2010
$0.72
$0.89
2009
• Reflects activity relating to proposed Charles River Laboratories transaction, including receipt of termination fee and
payment of transaction costs and employee bonuses
Third-Quarter 2013 Preview
 Estimated total revenues of $143-$145 million
 Estimated GAAP diluted earnings per ADS of $0.32-$0.34
 Estimated Non-GAAP diluted earnings per ADS of $0.38-$0.40
18
Synthetic Chemistry
70.3
26.7
48.0
19
 Synthetic chemistry is achieving single-digit revenue growth from
solid volume increases and modest price declines
 Recent new business from several customers will drive sequential
growth in revenues in 2H13
 Business from biotech companies continues to grow
 Margins are stable to slightly improving
• Wuhan facility, now about 20% of synthetic chemistry revenue, offers
more flexible pricing option to customers
• Increased productivity and efficiency are key drivers for both FTE and
FFS business growth
 We expect single-digit revenue growth in this business beyond 2013
Medicinal Chemistry and Other Discovery Services
20
 Our differentiated capabilities in integrated drug discovery are
driving mid-teen year-over-year revenue growth
 Ongoing programs, mainly with multinational companies, are going
well
 Biology, particularly oncology, is growing well from an expanded
customer base, increased customer satisfaction, and projects
supporting medicinal chemistry
Toxicology Services
21
 Our toxicology revenue is on target to grow about 40% in 2013,
despite a continuing depressed worldwide market, as customers
recognize WuXi’s quality and value
 The business had 48 customers in 2Q13, up from 32 in 2Q12, and
represents a healthy mix of companies—large and small,
multinational and Chinese, pharmaceutical and biotech
 About 70% of studies are GLP studies
 Our non-human primate studies, primarily for biologics, are a large
share of our business due to our expertise in this area
Biologics Services
22
 2Q13 revenue significantly exceeded our expectations, steep revenue
ramp-up expected in 2H13, business expected to break even by end of 2013
 Backlog grew to $53 million at end of 2Q13 from $40 million at end of
1Q13, is expected to grow further in 2H13
 WuXi formed a collaboration with Ambrx and Zhejiang Medicine to develop
and commercialize ARX788, Ambrx's antibody drug conjugate (ADC) for
Her2-positive breast cancer
 Development of MEDI5117 in our JV with MedImmune is advancing as
planned
 Five international clients are emerging as anchor clients
 Drug product (fill/finish) facility has been constructed and is being
validated
 We installed two 2,000-liter bioreactors, which will be used to produce
Phase 2/3 clinical trial materials starting 2H13
Clinical Services
23
 WuXiPRA, our clinical services joint venture with PRA, was established in
April 2013
 Dr. James Pusey was appointed President and General Manager
• More than 25 years of experience in medical practice, international clinical trial
management, CRO services, and global pharmaceutical sales, marketing, and
clinical operations
 China’s pharmaceutical market and the clinical trial business to support it
are growing at a strong, sustainable double-digit pace
• IMS Health estimates the China pharmaceutical market will grow 15-18%
annually from $67 billion in 2011 to $155-165 billion in 2016
 WuXi’s local knowledge and discovery and development capabilities and
PRA’s global clinical experience and systems are a good fit
 Our goal is to become the partner of choice for clinical research services in
China
Small-Molecule Manufacturing Services
24
 Manufacturing Services revenue is expected to grow high-teens in
2013 on the strength of our process chemistry and research
manufacturing capabilities
 Behind our six current commercial products, nine Phase 3 products
are in the pipeline and advancing in clinical trials
• Two of these nine products have large revenue potential once the
products are approved and launched
• Three commercial/Phase 3 products have received a breakthrough
designation from the FDA and a fourth is receiving fast-track review,
showing the innovative nature of the products we manufacture
U.S.-Based Laboratory Services
25
 The U.S. testing business underperformed in 1H13, with 2Q13
revenue down 3.2% and 1H13 revenue essentially flat year-over-
year
 This performance was due to weak new project wins, delayed starts
of new projects, and difficult comparisons with strong 1H12 results,
which were driven by two non-recurring projects
 We now expect low-single-digit full-year 2013 revenue growth
 We believe our U.S. testing business will benefit from the growth of
biologics pipelines and particularly from commercialization of many
therapeutic antibody products in coming years
 The second quarter performance exceeded our expectations, leading us to increase
our full-year 2013 projections
 This outperformance consisted of both sustainable improvements (higher revenues,
cost control) and short-term benefits (larger mark-to-market gains on foreign-
exchange forward contracts, lower tax expense)
 We believe all of our businesses are growth businesses, with particularly strong long-
term growth expected from integrated drug discovery services, small-molecule drug
development and manufacturing, biologics services, and clinical research services
 We continue to build a broad, integrated platform of R&D services that will enable
anyone and any company to discover and develop medicines more efficiently and
cost effectively
 This integrated platform does more than simply provide convenience to clients; it
helps them realize their dream of being a drug discoverer and developer; we have
grown our active client base to more than 1,000 pharmaceutical and biotech
companies
Conclusion
26
Appendix
GAAP to Non-GAAP Reconciliations
Share Count Information
ADS Shares for Earnings-per-ADS Calculation
27
Second-Quarter 2013 GAAP to Non-GAAP Reconciliation
28
2Q2013
(US$ in millions)
GAAP
Share-Based
Compensation
Expenses
Amortization of
Acquired Intangible
Assets and Deferred
Tax Impact Non-GAAP
Net revenues 142.3 142.3
Cost of revenues (90.6) 1.1 0.1 (89.4)
Selling & marketing expense (4.4) (4.4)
General & administrative expense (19.2) 2.9 (16.3)
Research & development expense (2.4) (2.4)
Other income/(exp.), net 7.8 7.8
Income tax expense (3.9) (3.9)
Net income 29.6 4.0 0.1 33.7
First-Half 2013 GAAP to Non-GAAP Reconciliation
29
1H2013
(US$ in millions)
GAAP
Share-Based
Compensation
Expenses
Amortization of
Acquired Intangible
Assets and Deferred
Tax Impact Non-GAAP
Net revenues 274.2 274.2
Cost of revenues (175.0) 2.2 0.2 (172.6)
Selling & marketing expense (8.4) (8.4)
General & administrative expense (37.4) 5.4 (32.0)
Research & development expense (4.7) (4.7)
Other income/(exp.), net 12.2 12.2
Income tax expense (9.6) (9.6)
Net income 51.3 7.6 0.2 59.1
Share Count Information
30
ADS Shares
ADS issued and outstanding 71,064,167
Share options and equivalents granted and outstanding 2,763,641
ADS available for future grants under employee incentive plan 3,875,680
(As of June 30, 2013)
ADS Shares for Earnings-per-ADS Calculation
31
Date Activities
Weighted
Average
ADS Shares
April 1, 2013 Ordinary share balance 67,833,189
April 1, 2013 RSUs vested 2,984,358
Second Quarter 2013 Share options exercised and RSUs vested 89,645
Second Quarter 2013 Share repurchase program (14,569)
June 30, 2013 ADSs outstanding – basic 70,892,623
June 30, 2013 Share options and equivalents 1,614,160
June 30, 2013 ADSs outstanding – diluted 72,506,783

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WuXi Second Quarter 2013 Earnings Presentation

  • 1. Second Quarter 2013 Earnings Presentation Dr. Ge Li, Chairman and CEO Edward Hu, COO and CFO
  • 2. Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead are predictions about future events. Examples of forward-looking statements in this presentation include statements about our third-quarter and full-year 2013 guidance, the goals and growth of our various service offerings and the prospects of our strategic partnerships. Although we believe that our predictions are reasonable, future events are inherently uncertain and our forward-looking statements may turn out to be incorrect. Our forward-looking statements are subject to risks relating to, among other things, our ability to increase volume for our chemistry service offerings, to meet timelines for the expansion of our biologics service offerings, to realize the anticipated benefits of our strategic partnerships, to protect our clients’ intellectual property, and to compete effectively. Additional information about these and other relevant risks can be found in our Annual Report on Form 20-F for the year ended December 31, 2012. The forward-looking statements in this presentation speak only as of the date on which they are made, and we assume no obligation to update any forward-looking statements except as required by law. 2
  • 3. We have provided the second-quarter and first-half 2012 and 2013 gross profit, gross margin, operating income, operating margin, net income, net margin, and earnings per ADS on a non-GAAP basis, which excludes share-based compensation expenses and the amortization and deferred tax impact of acquired intangible assets. We believe both management and investors benefit from referring to these non-GAAP financial measures in assessing our financial performance and liquidity and when planning and forecasting future periods. These non-GAAP operating measures are useful for understanding and assessing underlying business performance and operating trends. We expect to continue to provide net income and earnings per ADS on a non-GAAP basis using a consistent method on a quarterly basis. You should not view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP measures to non- GAAP measures for the indicated periods in this presentation. Use of Non-GAAP and Pro-Forma Financial Measures 3
  • 4.  Revenues grew 9.2% year over year, led by 18.6% growth in China- based Laboratory Services  Costs were well-controlled through continuous operational improvements, increased productivity, and company-wide implementation of Lean Sigma programs  Gross margins and operating margins were in line with recent quarters and comparable to 2Q12  GAAP diluted EPS grew 45.5% to $0.41, driven by revenue growth, cost control, and non-operational factors  We exceeded our 2Q13 revenue and diluted EPS guidance Second Quarter Overview 4
  • 5.  Biologics services achieved strong revenue growth in 2Q13 and will be one of the key drivers of revenue and earnings growth for the next several years  The pipeline of small-molecule commercial manufacturing opportunities continues to grow  WuXiPRA, our clinical services joint venture with PRA, was established and Dr. James Pusey was named President and General Manager  On the basis of this strong quarter, we increased full-year 2013 guidance • Revenue guidance increased from $565-$575 million to $572-$578 million • GAAP diluted EPS guidance increased from $1.26-$1.30 to $1.38-$1.44 • Non-GAAP diluted EPS guidance increased from $1.49-$1.53 to $1.61-$1.67 Second Quarter Overview (continued) 5
  • 6.  Revenue exceeded guidance, driven primarily by higher than expected revenues in biologics services, manufacturing, and medicinal chemistry  Diluted EPS also exceeded guidance, driven by revenue growth, gross margin improvement, larger mark-to-market gains on foreign- exchange forward contracts, and lower tax expense Second-Quarter 2013 Performance Versus Guidance Actual Guidance Total Revenues $142.3 million $138-140 million GAAP Diluted EPS $0.41 $0.34-$0.35 Non-GAAP Diluted EPS $0.46 $0.39-$0.40 6
  • 7. Second-Quarter 2013 Revenue Summary (US$ in millions) Second Quarter 2013 2012 Δ Total Net Revenue $142.3 $130.4 9.2% China-Based Laboratory Services $83.4 $70.3 18.6% U.S.-Based Laboratory Services $22.5 $23.3 (3.2%) Total Laboratory Services $105.9 $93.6 13.2% Manufacturing Services $36.4 $36.8 (1.1%) 7
  • 8. Revenue Performance by Business 2Q12 3Q12 4Q12 1Q13 2Q13 Total Net Revenues Manufacturing Services U.S.-Based Lab Services China-Based Lab Services $130.4 36.8 23.3 70.3 $125.8 26.9 21.9 77.0 $125.7 21.9 22.3 81.5 $131.9 34.4 23.0 74.5 $142.3 36.4 83.4 22.5  Total company revenue was a record  China Lab Services continued its strong growth trend with a record quarter  U.S. Lab Services revenue growth is being impacted by difficult comparisons with a strong 2Q12  Manufacturing Services revenue was our second highest ever 8
  • 9. Second-Quarter 2013 GAAP Financial Summary (US$ in millions) Second Quarter 2013 2012 % Growth Net Revenue $142.3 $130.4 9.2% Gross Profit 51.8 46.5 11.3% Gross Margin 36.4% 35.7% Operating Income 25.7 23.8 8.1% Operating Margin 18.1% 18.2% Net Income 29.6 20.5 44.6% Effective Tax Rate* 11.6% 16.8% Weighted Average ADS Outstanding— Diluted 72,506,783 72,984,759 (0.7%) Diluted Net Earnings Per ADS 0.41 0.28 45.5% 9* The 2Q13 effective tax rate reflects the mix of taxable income and one-time tax benefits of $2.3 million
  • 10. GAAP Revenues/Gross Profit/Operating Income Total Net Revenues 36.8 23.3 70.3 26.9 21.9 77.0 21.9 22.3 81.5 34.4 23.0 74.5 36.4 83.4 22.5  GAAP gross profit and operating income were at record levels  GAAP gross margin and operating margin were within the range of prior quarters 2Q12 3Q12 4Q12 1Q13 2Q13 $130.4 46.5 23.8 35.7% Revenues 18.2% $125.8 46.1 21.5 36.6% 17.0% $125.7 48.8 23.6 38.8% 18.7% $131.9 47.4 23.0 36.0% 17.4% $142.3 51.8 25.7 18.1% 36.4% 10 Gross Profit / Margin Operating Income / Margin
  • 11. Second-Quarter 2013 Non-GAAP Financial Summary (US$ in millions) Second Quarter 2013 2012 % Growth Net Revenue $142.3 $130.4 9.2% Gross Profit 53.0 48.0 10.2% Gross Margin 37.2% 36.8% Operating Income 29.8 27.4 8.8% Operating Margin 20.9% 21.0% Net Income 33.7 23.9 41.0% Effective Tax Rate* 10.4% 15.3% Weighted Average ADS Outstanding— Diluted 72,506,783 72,984,759 (0.7%) Diluted Net Earnings Per ADS 0.46 0.33 41.9% 11* The 2Q13 effective tax rate reflects the mix of taxable income and one-time tax benefits of $2.3 million
  • 12. Non-GAAP Revenues/Gross Profit/Operating Income Total Net Revenues 36.8 23.3 70.3 26.9 21.9 77.0 21.9 22.3 81.5 34.4 23.0 74.5 36.4 83.4 22.5  Stable margin trends similar to GAAP numbers 2Q12 3Q12 4Q12 1Q13 2Q13 $130.4Revenues $125.8 $125.7 $131.9 $142.3 29.8 20.9% 48.5 26.7 53.0 27.4 50.0 26.6 47.6 27.4 48.0 37.2% 36.8% 20.2% 39.8% 21.8%21.2% 37.8% 21.0% 36.8% 12 Gross Profit / Margin Operating Income / Margin
  • 13. Second-Quarter 2013 Revenue Distribution 36.8 23.3 70.3 26.9 21.9 77.0 21.9 22.3 81.5 34.4 74.5 36.4 83.4 22.5 29.8 48.6 26.7 53.0 27.4 50.0 26.6 47.6 27.4 48.0 13 2Q132Q12 China-Based Lab Services Medicinal Chemistry And Other Discovery* 27.0% Development** 15.8% U.S. Lab Services 15.8% Manufacturing 25.6% *Includes Medicinal Chemistry, Biology, DMPK/ADME, Biological Reagents and others **Includes Formulation, Analytical Development, Toxicology, Bioanalytical Services, Biologics, Clinical, and Genomics Synthetic Chemistry 17.2% Medicinal Chemistry And Other Discovery* 26.0% Development** 10.7% Manufacturing 28.3% U.S. Lab Services 17.8% Synthetic Chemistry 15.8%
  • 14. Factors Impacting 2Q13 Diluted EPS 14 $0.28 $0.41~$.14 (~$.02) (~$.02) 2Q12 Diluted EPS 2Q13 Diluted EPS Business Growth Investment* Labor Inflation $0.33 $0.46 GAAP Non-GAAP Non-GAAP GAAP ~$.07 (~$.04) Mark-to- Market Gains** Other FX Impacts * Investment includes losses from biologics R&D, biologics manufacturing facilities, JVs with MedImmune and PRA, and risk sharing projects ** Mark-to-market gains on foreign-exchange forward contracts of $3.0 million were recorded in 2Q13, while mark- to-market losses of $2.3 million were recorded in 2Q12
  • 15. Capital Resources and Cash Flow 36.8 23.3 70.3 26.9 21.9 77.0 21.9 22.3 81.5 34.4 74.5 36.4 83.4 22.5 29.8 48.6 26.7 53.0 27.4 50.0 26.6 47.6 27.4 48.0  Cash and short-term investments of $299.6 million at June 30, 2013  Total debt (bank loans) of $64.8 million at June 30, 2013  Operating cash flow of $39.6 million for 2Q13, $79.0 million for 1H13  Capital expenditures of $8.6 million for 2Q13, $14.6 million for 1H13; we expect full-year 2013 capital expenditures of about $60 million as planned 15
  • 16. Full-Year 2013 Financial Guidance New Previous Total Revenues $572-578 million $565-575 million Gross and Operating Margins (GAAP and Non-GAAP) Comparable to 2012 Comparable to 2012 GAAP Diluted EPS $1.38-$1.44 $1.26-$1.30 Non-GAAP Diluted EPS $1.61-$1.67 $1.49-$1.53 Capital Expenditures About $60 million About $60 million 16
  • 17. Strong Revenue and Diluted EPS Growth 17 $572-578 $499.9 $407.2 $334.1 (US$ in Millions, except per-ADS amounts) $270.0 Revenues GAAP Diluted EPS Non-GAAP Diluted EPS $1.38-1.44 $1.61-1.67 2013 Est. $1.19 $1.40 2012 $1.07 $1.24 2011 $1.22* $1.09 2010 $0.72 $0.89 2009 • Reflects activity relating to proposed Charles River Laboratories transaction, including receipt of termination fee and payment of transaction costs and employee bonuses
  • 18. Third-Quarter 2013 Preview  Estimated total revenues of $143-$145 million  Estimated GAAP diluted earnings per ADS of $0.32-$0.34  Estimated Non-GAAP diluted earnings per ADS of $0.38-$0.40 18
  • 19. Synthetic Chemistry 70.3 26.7 48.0 19  Synthetic chemistry is achieving single-digit revenue growth from solid volume increases and modest price declines  Recent new business from several customers will drive sequential growth in revenues in 2H13  Business from biotech companies continues to grow  Margins are stable to slightly improving • Wuhan facility, now about 20% of synthetic chemistry revenue, offers more flexible pricing option to customers • Increased productivity and efficiency are key drivers for both FTE and FFS business growth  We expect single-digit revenue growth in this business beyond 2013
  • 20. Medicinal Chemistry and Other Discovery Services 20  Our differentiated capabilities in integrated drug discovery are driving mid-teen year-over-year revenue growth  Ongoing programs, mainly with multinational companies, are going well  Biology, particularly oncology, is growing well from an expanded customer base, increased customer satisfaction, and projects supporting medicinal chemistry
  • 21. Toxicology Services 21  Our toxicology revenue is on target to grow about 40% in 2013, despite a continuing depressed worldwide market, as customers recognize WuXi’s quality and value  The business had 48 customers in 2Q13, up from 32 in 2Q12, and represents a healthy mix of companies—large and small, multinational and Chinese, pharmaceutical and biotech  About 70% of studies are GLP studies  Our non-human primate studies, primarily for biologics, are a large share of our business due to our expertise in this area
  • 22. Biologics Services 22  2Q13 revenue significantly exceeded our expectations, steep revenue ramp-up expected in 2H13, business expected to break even by end of 2013  Backlog grew to $53 million at end of 2Q13 from $40 million at end of 1Q13, is expected to grow further in 2H13  WuXi formed a collaboration with Ambrx and Zhejiang Medicine to develop and commercialize ARX788, Ambrx's antibody drug conjugate (ADC) for Her2-positive breast cancer  Development of MEDI5117 in our JV with MedImmune is advancing as planned  Five international clients are emerging as anchor clients  Drug product (fill/finish) facility has been constructed and is being validated  We installed two 2,000-liter bioreactors, which will be used to produce Phase 2/3 clinical trial materials starting 2H13
  • 23. Clinical Services 23  WuXiPRA, our clinical services joint venture with PRA, was established in April 2013  Dr. James Pusey was appointed President and General Manager • More than 25 years of experience in medical practice, international clinical trial management, CRO services, and global pharmaceutical sales, marketing, and clinical operations  China’s pharmaceutical market and the clinical trial business to support it are growing at a strong, sustainable double-digit pace • IMS Health estimates the China pharmaceutical market will grow 15-18% annually from $67 billion in 2011 to $155-165 billion in 2016  WuXi’s local knowledge and discovery and development capabilities and PRA’s global clinical experience and systems are a good fit  Our goal is to become the partner of choice for clinical research services in China
  • 24. Small-Molecule Manufacturing Services 24  Manufacturing Services revenue is expected to grow high-teens in 2013 on the strength of our process chemistry and research manufacturing capabilities  Behind our six current commercial products, nine Phase 3 products are in the pipeline and advancing in clinical trials • Two of these nine products have large revenue potential once the products are approved and launched • Three commercial/Phase 3 products have received a breakthrough designation from the FDA and a fourth is receiving fast-track review, showing the innovative nature of the products we manufacture
  • 25. U.S.-Based Laboratory Services 25  The U.S. testing business underperformed in 1H13, with 2Q13 revenue down 3.2% and 1H13 revenue essentially flat year-over- year  This performance was due to weak new project wins, delayed starts of new projects, and difficult comparisons with strong 1H12 results, which were driven by two non-recurring projects  We now expect low-single-digit full-year 2013 revenue growth  We believe our U.S. testing business will benefit from the growth of biologics pipelines and particularly from commercialization of many therapeutic antibody products in coming years
  • 26.  The second quarter performance exceeded our expectations, leading us to increase our full-year 2013 projections  This outperformance consisted of both sustainable improvements (higher revenues, cost control) and short-term benefits (larger mark-to-market gains on foreign- exchange forward contracts, lower tax expense)  We believe all of our businesses are growth businesses, with particularly strong long- term growth expected from integrated drug discovery services, small-molecule drug development and manufacturing, biologics services, and clinical research services  We continue to build a broad, integrated platform of R&D services that will enable anyone and any company to discover and develop medicines more efficiently and cost effectively  This integrated platform does more than simply provide convenience to clients; it helps them realize their dream of being a drug discoverer and developer; we have grown our active client base to more than 1,000 pharmaceutical and biotech companies Conclusion 26
  • 27. Appendix GAAP to Non-GAAP Reconciliations Share Count Information ADS Shares for Earnings-per-ADS Calculation 27
  • 28. Second-Quarter 2013 GAAP to Non-GAAP Reconciliation 28 2Q2013 (US$ in millions) GAAP Share-Based Compensation Expenses Amortization of Acquired Intangible Assets and Deferred Tax Impact Non-GAAP Net revenues 142.3 142.3 Cost of revenues (90.6) 1.1 0.1 (89.4) Selling & marketing expense (4.4) (4.4) General & administrative expense (19.2) 2.9 (16.3) Research & development expense (2.4) (2.4) Other income/(exp.), net 7.8 7.8 Income tax expense (3.9) (3.9) Net income 29.6 4.0 0.1 33.7
  • 29. First-Half 2013 GAAP to Non-GAAP Reconciliation 29 1H2013 (US$ in millions) GAAP Share-Based Compensation Expenses Amortization of Acquired Intangible Assets and Deferred Tax Impact Non-GAAP Net revenues 274.2 274.2 Cost of revenues (175.0) 2.2 0.2 (172.6) Selling & marketing expense (8.4) (8.4) General & administrative expense (37.4) 5.4 (32.0) Research & development expense (4.7) (4.7) Other income/(exp.), net 12.2 12.2 Income tax expense (9.6) (9.6) Net income 51.3 7.6 0.2 59.1
  • 30. Share Count Information 30 ADS Shares ADS issued and outstanding 71,064,167 Share options and equivalents granted and outstanding 2,763,641 ADS available for future grants under employee incentive plan 3,875,680 (As of June 30, 2013)
  • 31. ADS Shares for Earnings-per-ADS Calculation 31 Date Activities Weighted Average ADS Shares April 1, 2013 Ordinary share balance 67,833,189 April 1, 2013 RSUs vested 2,984,358 Second Quarter 2013 Share options exercised and RSUs vested 89,645 Second Quarter 2013 Share repurchase program (14,569) June 30, 2013 ADSs outstanding – basic 70,892,623 June 30, 2013 Share options and equivalents 1,614,160 June 30, 2013 ADSs outstanding – diluted 72,506,783