0

Fourth Quarter 2012

Earnings Presentation

Dr. Ge Li, Chairman and CEO

Edward Hu, COO/CFO

1

Cautionary Note Regarding Forward-Looking Statements

Statements in this presentation contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995, including, among others, our ability to reach our business and financial goals for the full year 2013, our financial guidance for full-year and first-quarter 2013 (including, as applicable, estimated total revenues, estimated GAAP and non-GAAP diluted earnings per ADS, capital expenditures, and other trends), overall ongoing and future investment in talent and facilities, laboratory services’ ongoing and future investment, the growth of our small-molecule manufacturing business pipeline, our ability to continue achieving substantial free cash flow, building a comprehensive and integrated technology platform, the ability of this platform to enable anyone and any company to discover and develop new products efficiently and cost-effectively, our future delivery of drug candidates, pricing pressure in synthetic chemistry, our productivity and future operating costs, the build-up of clinical development service capabilities, the growth of our biologics drug discovery and development capabilities, our expected biologic services project portfolio, the growth and growth drivers in our manufacturing services, the expected variability of commercial manufacturing revenue, research manufacturing revenues, expected growth across China-based laboratory services, increasing utilization of our integrated drug development services, revenue growth in U.S.-based laboratory services, growth in manufacturing services, expansion of our clinical development platform, lower capital expenditures, and more efficient use of existing facilities. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Among other factors, the state of the global economy may continue to be uncertain; pharmaceutical companies may not change their business models as expected or in a manner favorable to us; we may fail to capitalize on the opportunities presented; the pressures being felt by our customers and pharmaceutical industry consolidation may adversely impact our business and the trends for outsourced and offshored R&D and manufacturing for longer than expected or more severely than expected; we may not enjoy the anticipated benefits of our acquisitions and joint ventures or other planned investments and capital expenditures (including investments made through our corporate venture fund) on a timely basis or at all; we may need to modify the nature and level of our investments and capital expenditures; we may not maintain our preferred provider status with our clients and may be unable to successfully expand our capabilities to meet client needs; our intellectual property protection policies may be breached, harming our customers and us; and we may face increased margin pressure as a result of renminbi appreciation and increased labor inflation in China and the company’s investment. In addition, other factors that could cause our actual results to differ from what we currently anticipate include failure to generate sufficient future cash flows or to secure any required future financing on acceptable terms or at all; failure to retain key personnel; our reliance on a limited number of customers to continue to account for a high percentage of our revenues; the risk of payment failure by any of our large customers, which could significantly harm our cash flows and profitability; our dependence upon the continued service of our senior management and key scientific personnel, and our ability to retain our existing customers or expand our customer base. You should read the financial information contained in this release in conjunction with the consolidated financial statements and related notes thereto included in our 2011 Annual Report on Form 20-F filed with the Securities and Exchange Commission and available on the Securities and Exchange Commission's website at http://www.sec.gov. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 6 of our 2011 Annual Report on Form 20-F. Our results of operations for fourth-quarter 2012 are not necessarily indicative of our operating results for any future periods. All projections in this release are based on limited information currently available to us, which is subject to change. Although these projections and the factors influencing them will likely change, we undertake no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release, except as required by law. Such information speaks only as of the date of this release.

2

Use of Non-GAAP and Pro-Forma Financial Measures

We have provided the fourth-quarter 2011 and 2012 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, the amortization and deferred tax impact of

acquired intangible assets, impairment charges for goodwill and intangible

assets, and revaluation of contingent consideration. 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 attached hereto.

3

Overview

WuXi is succeeding on three fronts: growing, investing, and returning

capital to shareholders

We achieved strong double-digit revenue growth in the fourth quarter

and full year of 2012

We also achieved double-digit EPS growth in 2012 despite margin

pressure

We continue to invest to build capabilities and capacity in order to

sustain revenue growth and EPS growth for the long term

We are making progress toward our dream of building an open-access

technology platform and integrated service offerings that will enable

anyone and any company to discover and develop medicines more

efficiently and cost-effectively

While growing and investing, we are generating strong free cash flow

that allows us to purchase our shares, which we believe are undervalued

4

WuXi’s Integrated R&D Service Platform Today

Synthetic

Chemistry

Discovery Clinical/Commercial

Research

Manufac-

turing

Discovery

Biology

Medicinal

Chemistry

ADME/

DMPK Formulation Toxicology

Clinical

Testing

Bio-

analytical

Services

Preclinical/Development

Commercial

Manufac-

turing

Small Molecules

Biologics

Medical Devices

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Revenues ($ millions) 20

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

12

Headcount

~7,000 ~500

Toxicology

Combo

Product

Testing/

Manufacture

Package

Testing

Biocom-

patibility

Tissue-

Based

Product

Testing

Lot

Release

Testing

Micro-

biology

Novel

MAb

Discovery

Discovery

Biology/

Drug

Screening

Cell Line

Engineering/

Construction

Toxicology

Assay/For-

mulation/

Process

Devel.

Cell Bank-

ing/Cell

Line Char-

acterization

Viral

Clearance

Validation

Lot

Release/

Stability

Testing

Research

Manufac-

turing

Genomics

Manufac-

turing

Process

Research

cGMP

Manufac-

turing

Clinical &

Bioanal.

Testing

Bio-

analytical

Services

Preclinical

Efficacy

Materials

Character-

ization

Risk

Assess-

ment

Research

Reagents

5

Fourth-Quarter 2012 Financial Results

Strong, broad-based year-over year revenue growth of 15.8%,

driven by continued growth in demand for WuXi’s

comprehensive, integrated services platform

22.2% year-over-year growth in China-based Laboratory

Services revenue, led by growth in integrated drug discovery

and drug development services

Higher GAAP and non-GAAP gross margin and operating

margin versus first three quarters of 2012

Met or exceeded financial guidance

6

Full-Year 2012 Financial Results

22.8% revenue growth, with double-digit growth from each of our

three businesses

26.8% revenue growth in China-based Laboratory Services, led by

25% growth in integrated drug discovery services (medicinal

chemistry, biology, DMPK/ADME) and 75% growth in drug

development services

10.8% GAAP EPS growth, 13.3% Non-GAAP EPS growth in spite of

margin pressure

Invested $67.8 million in capital expenditures for new facilities and

equipment

Purchased 7% of our ADSs outstanding at the beginning of 2012

Met or exceeded financial guidance

7

2012 Operational Highlights

Opened new chemistry facility in Wuhan

Opened cGMP drug-substance biologics manufacturing facility in Wuxi

Formed joint venture with MedImmune to develop MEDI5117, an anti-IL6 antibody for rheumatoid arthritis and other autoimmune disorders for the China market

Entered into an agreement to form joint venture with PRA to offer clinical research services in China

Performed numerous integrated drug development projects from API synthesis to GLP toxicology studies for IND filings in China and globally

Increased workforce to about 7,000 people worldwide

8

Revenue Summary*

(US$ in millions)

Fourth Quarter Full Year

2012 2011 Δ 2012 2011 Δ

Total Net Revenue $125.7 $108.5 15.8% $499.9 $407.2 22.8%

China-Based Laboratory

Services $81.5 $66.7 22.2% $293.2 $231.3 26.8%

U.S.-Based Laboratory

Services $22.3 $20.8 7.2% $89.7 $80.3 11.6%

Total Laboratory Services $103.8 $87.5 18.6% $382.9 $311.6 22.9%

Manufacturing Services $21.9 $21.0 4.0% $117.0 $95.5 22.5%

*Classifies Process Chemistry in Manufacturing Services for all periods

9

Total Net Revenues

(US$ in Millions)

4Q11 1Q12 2Q12 3Q12 4Q12

Manufacturing

Services

China-Based

Laboratory

Services

Revenue Performance by Services*

U.S.-Based

Laboratory

Services

$108.5

21.0

20.8

66.7

$118.0

22.2

64.4

31.4

*Classifies Process Chemistry in Manufacturing Services for all periods

$130.4

70.3

23.3

36.8

77.0

21.9

26.9

$125.8

81.5

22.3

21.9

$125.7

10

GAAP Financial Summary

(US$ in millions)

Fourth Quarter Full Year

2012 2011 Δ 2012 2011 Δ

Net Revenue $125.7 $108.5 15.8% $499.9 $407.2 22.8%

Gross Profit $48.8 $42.6 14.6% $183.2 $156.4 17.1%

Gross Margin 38.8% 39.2% 36.7% 38.4%

Operating Income $23.6 $20.2 16.5% $89.4 $83.8 6.7%

Operating Margin 18.7% 18.6% 17.9% 20.6%

Net Income $23.8 $23.5 1.4% $86.6 $81.0 6.9%

Effective Tax Rate 15.9% 14.3% 16.7% 17.0%

Weighted Average

ADS Outstanding—

Diluted

71,688,426 75,233,086 (4.7%) 72,797,344 75,439,734 (3.5%)

Diluted Net Earnings

Per ADS $0.33 $0.31 6.5% $1.19 $1.07 10.8%

11

(US$ in Millions)

4Q11 1Q12 2Q12 3Q12 4Q12

Gross Profit/Margin

Revenues

Operating Income/

Margin

GAAP Revenues/Gross Profit/Operating Income

$108.5

39.2%

18.6% 20.2

42.6

$118.0

20.6

41.9 35.5%

17.5%

$130.4

46.5

23.8

35.7%

18.2%

125.8

21.5

46.1 36.6%

17.0%

125.7

23.6

48.8 38.8%

18.7%

12

Non-GAAP Financial Summary*

(US$ in millions) Fourth Quarter Full Year

2012 2011 Δ 2012 2011 Δ

Net Revenue $125.7 $108.5 15.8% $499.9 $407.2 22.8%

Gross Profit 50.0 44.0 13.7% $189.1 $161.8 16.9%

Gross Margin 39.8% 40.5% 37.8% 39.7%

Operating Income 27.4 23.8 15.1% $105.7 $96.8 9.2%

Operating Margin 21.8% 21.9% 21.2% 23.8%

Net Income 27.5 26.9 2.1% $102.2 $93.4 9.4%

Weighted Average

ADS Outstanding—

Diluted

71,688,426 75,233,086 (4.7%) 72,797,344 75,439,734 (3.5%)

Diluted Net Earnings

Per ADS 0.38 0.36 7.2% $1.40 $1.24 13.3%

*Excludes the impact of share-based compensation expenses, amortization and the

deferred tax impact of acquired intangible assets, impairment charges for goodwill and

intangible assets, and revaluation of contingent consideration

13

(US$ in Millions)

4Q11 1Q12 2Q12 3Q12 4Q12

Gross Profit/

Margin

Revenues

Operating Income/

Margin

Non-GAAP Revenues/Gross Profit/Operating Income

23.8

44.0

$108.5

40.5%

21.9% 24.3

43.5

$118.0

36.8%

20.6%

$130.4

21.0%

36.8% 48.0

27.4

$125.8

26.6

47.6 37.8%

21.2%

$125.7

50.0

27.4 21.8%

39.8%

14

Capital Resources and Cash Flow

Cash and short term investments of $229.4 million at

December 31, 2012

Total debt of $64.8 million at December 31, 2012

Operating cash flow of $33.8 million for fourth-quarter 2012,

$131.2 million for full-year 2012

Capital expenditures of $15.6 million for fourth-quarter 2012,

$67.8 million for full-year 2012

15

Share Purchases

While investing aggressively in our growing business, we

are also returning capital to shareholders

In 2012, we spent $67 million to purchase about 7% of our

ADSs outstanding at the beginning of 2012

Today, we announce a new share purchase authorization for

$100 million over the next 18-24 months

16

Full-Year 2013 Financial Guidance

Total revenues of $565-$575 million, up 13-15% year

over year

GAAP diluted earnings per ADS of $1.26-$1.30, up 6-9%

Non-GAAP diluted earnings per ADS of $1.49-$1.53, up

6-9%

Capital expenditures of about $60 million

17

Factors Expected to Impact 2013 Diluted Earnings Per ADS

$1.19

$1.26-$1.30

~$.30 (~$.04)

(~$.13)

(~$.07)

2012

Diluted EPS

Estimated 2013

Diluted EPS

Foreign

Exchange

Business

Growth

Investment* Share

Purchases

Labor

Inflation

~$.03

* Investment includes biologics R&D, losses from biologics manufacturing facilities, JVs with MedImmune

and PRA and risk sharing projects

$1.40

$1.49-$1.53

~$.32

GAAP

Non-GAAP

GAAP

Non-GAAP

Non-GAAP

GAAP

18

First-Quarter 2013 Preview

Estimated total revenues of $129-$131 million, up 9-11% year

over year

Estimated GAAP and Non-GAAP diluted earnings per ADS of

26-27 cents and 31-32 cents, respectively

Accelerating quarterly revenue growth throughout 2013,

particularly in discovery, biologics, and development services

Accelerating diluted EPS growth throughout 2013, driven by

this accelerating revenue growth, slower sequential expense

growth, and share purchases

19

Strong Revenue and Profit Growth

(US$ in Millions, except per-share amounts)

Revenues

$270.0

$334.1

$407.2

$565-575

$499.9

GAAP EPS

Non-GAAP EPS

2009 2011 2012 2010 2013 Est.

$1.49-1.53 $1.40 $1.24 $1.09 $0.89

$1.26-1.30 $1.19 $1.07 $1.22* $0.72

• Reflects activity relating to proposed Charles River Laboratories transaction, including

receipt of termination fee and payment of transaction costs and employee bonuses

20

Major Drug Discovery and Development Services

Drug Discovery Services

Synthetic chemistry

Medicinal chemistry

Biology

DMPK/ADME

Peptide synthesis

Biological reagents

Drug Development Services

Formulation

Analytical development services

Toxicology

Bioanalytical services

Biologics development

Clinical research

Genomics

21

Revenue Distribution by Service Offering

Manufacturing

23.5%

Development**

8.6%

U.S. Lab

Services

17.9%

U.S. Lab

Services

19.7%

Medicinal

Chemistry

And Other

Discovery*

26.6%

Synthetic

Chemistry

21.6%

Manufacturing

23.4%

Development**

12.3%

Medicinal

Chemistry

And Other

Discovery*

28.1%

Synthetic

Chemistry

18.3%

*Includes Medicinal Chemistry, Radio Chemistry, Biology, DMPK/ADME, Peptide Synthesis, and

Biological Reagents

**Includes Formulation, Analytical Development, Toxicology, Bioanalytical Services, Biologics,

Clinical, and Genomics

China Based

Lab Services

22

China-Based Laboratory Services: History of Growth

Drug

Discovery

Drug

Development

2009 2010 2011 2012 2013 Est.

+15.8% +6.9%

+29.6%

+76.4%

+76.6%

+13.7%

+17.0%

China-Based

Laboratory

Services

Note: All periods exclude Process Chemistry , which is included in Manufacturing Services

+26.8%

+18.1%

+75.4%

+13-15%

+~30%

+~10%

23

Synthetic Chemistry

Competition in synthetic chemistry in China and India is

producing pricing pressure

WuXi achieved single-digit revenue growth in 2012 through

volume growth that more than offset this pricing pressure

Lean Sigma program helped control costs, improve

productivity, and increase margins

The new Wuhan facility offers attractive prices through lower

operating costs and government subsidies, delivers good

margin

We anticipate single-digit revenue growth in 2013

While once the entire company, synthetic chemistry is now

about 18% of company revenues

24

Medicinal Chemistry and Other Drug Discovery Services

Medicinal chemistry and other discovery services are now

WuXi’s largest function, with differentiated capabilities and

good profitability

We delivered nine small molecule preclinical drug candidates

and one proof of concept compound for customers in 2012

41 lead-optimization programs were ongoing at year-end 2012

Mid-teen revenue growth expected from these combined

functions in 2013, particularly strong growth in biology

Certain integrated drug discovery programs are eligible for

success-based bonuses when compound enters first-in-

human clinical trials

25

Toxicology

Continuing to build our position as the #1 toxicology CRO in China for

domestic and international clients

Re-certified in 2012 by Belgium (OECD) regulators and SFDA for GLP

compliance, including broadened scope of both certifications to cover

all preclinical studies needed to support small and large molecule

safety studies

More than doubled annual revenues in 2012, targeting > 40% increase

in revenues in 2013; ~30% of revenues from domestic Chinese clients

Currently at 50-60% capacity utilization, expect to reach full (80-85%)

capacity in built-out rooms within a year and will consider building out

the remainder of the facility early next year

Expanding small- and large-molecule bioanalytical capability

26

Biologics Services

WuXi is the partner of choice for biologics services in China, with few

competitors

Deep understanding of Chinese regulations, which require that biologics

used in clinical trials either be approved in other markets or manufactured in

China

Expected project portfolio to be a mix of biosimilars and novel molecules,

with both multinational and Chinese customers

Highly capable team of about 300 people, including about 30 returnees with

US/EU industry experience

About $30 million in capital expenditures to date, $16-$18 million more

planned in 2013

Current backlog at about $33 million, with about 50 customers now and

growing

Operating at a loss currently reducing company margins by about 2

percentage points, expected to turn to an operating profit within two years

with strong revenue ramp-up

27

Clinical Research – Forming JV with PRA

Complementary strengths of both companies to accelerate the buildup of a

leading clinical CRO in China

• WuXi’s existing clinical research organization with talented employees,

strong China operational experience, integrated drug discovery and

development capabilities, and strong management team

• PRA’s proven track record as a leading global clinical CRO, with operations

in over 80 countries; strong capabilities to conduct Phase I-IV clinical trials

globally

WuXi’s existing clinical research organization of about 90 people and PRA’s 11

China- and Hong Kong-based employees will join forces to form the JV initially,

with rapid hiring of additional staff planned in 2013

The JV will offer a broad platform of Phase I-IV clinical trial services in China,

including clinical trial monitoring, project management, regulatory strategy and

submissions, data management/biostatistics services, pharmacovigilance/

safety reporting, and medical monitoring

Starting in second quarter, clinical research business will not be consolidated

into WuXi’s P&L and will be accounted for as Equity Investment Income/Loss

28

Small Molecule Manufacturing Services

Overall small molecule manufacturing revenue to grow at mid-

teen rate in 2013

Commercial manufacturing revenue declined moderately in

2012, will be relatively flat for 2013 as we continue to diversify

our portfolio beyond one large product

We manufactured advanced ingredients for five commercial

products in 2012

Seven additional commercial product opportunities are in the

near-term pipeline starting in 2014, including some with large

revenue potential for WuXi

29

U.S.-Based Laboratory Services

Revenues have grown at a 9.2% CAGR since 2008, with

substantial improvement in profit margins

2012 revenue growth of 11.6% was driven by double-digit

growth in both medical device and biologics testing services

Broad-based, high-single-digit revenue growth is expected in

2013, with stable profitability

Revenue and net income expected to grow sequentially

throughout the year, driven by seasonality of business in both

2012 and 2013

30

Key Drivers of Revenue Growth

Continued revenue growth across China-based Laboratory

Services, driven by our ability to deliver high-quality services and

drug candidates for our customers

Increasing utilization of our integrated drug development services

for API manufacturing, IND-enabling toxicology studies and IND

filings with the China SFDA and global regulatory authorities

Steady growth in revenues in U.S.-based Laboratory Services

Continuing growth in Manufacturing Services driven by research

manufacturing and growing commercial-manufacturing pipeline

Ramp-up of biologics drug discovery, development, and

manufacturing services

Expansion of our clinical development platform with the WuXi PRA

joint venture

31

Conclusion

We are confident that our dream will become a reality—to build an

open-access technology platform of integrated services that will

enable anyone and any company to discover and develop products

to benefit patients

We believe this because:

• An open-access platform is the most effective and efficient

way to allow researchers to capitalize their knowledge and

experience and help solve the problem of low productivity in

the pharmaceutical industry

• Health care spending will continue to grow globally because

the world’s patients will demand, and be willing to pay for,

high-quality medical products and a better quality of life

• Operational strength in China is important to capitalize on the

rising demand by a large and rapidly growing Chinese middle

class for the same treatments prescribed for Western patients

32

Appendix

GAAP to Non-GAAP Reconciliation

Share Count Information

ADS Shares for Earnings-per-ADS Calculation

33

4Q2012

(US$ in millions) GAAP

Share-

Based

Compen-

sation

Expenses

Amortization of

Acquired

Intangible

Assets and

Deferred Tax

Impact

Impairment

Charges for

Goodwill and

Intangible

Assets

Revaluation of

Contingent

Compensation

Non-

GAAP

Net revenues 125.7 125.7

Cost of revenues (76.9) 0.8 0.4 (75.7)

Selling & marketing expense (4.7) (4.7)

General & administrative exp. (18.0) 2.6 (15.4)

Research & development exp. (2.5) (2.5)

Impairment charge (3.4) 3.4 --

Revaluation of contingent comp. 3.4 (3.4) --

Other income/(exp.), net 4.7 4.7

Income tax expense (4.5) (0.1) (4.6)

Net income 23.8 3.4 0.3 3.4 (3.4) 27.5

Fourth-Quarter 2012 GAAP to Non-GAAP Reconciliation

34

FY2012

(US$ in millions) GAAP

Share-

Based

Compen-

sation

Expenses

Amortization of

Acquired

Intangible

Assets and

Deferred Tax

Impact

Impairment

Charges for

Goodwill and

Intangible

Assets

Revaluation of

Contingent

Compensation

Non-

GAAP

Net revenues 499.9 499.9

Cost of revenues (316.7) 3.9 2.0 (310.8)

Selling & marketing expenses (15.4) (15.4)

General & administrative exp. (70.3) 10.4 (59.9)

Research & development exp. (8.1) (8.1)

Impairment charge (3.4) 3.4 --

Revaluation of contingent comp. 3.4 (3.4) --

Other income/(exp.), net 14.6 14.6

Income tax expense (17.4) (0.7) (18.1)

Net income 86.6 14.3 1.3 3.4 (3.4) 102.2

Full-Year 2012 GAAP to Non-GAAP Reconciliation

35

Share Count Information

(As of December 31, 2012)

ADS Shares

ADS issued and outstanding 70,140,125

Share options and equivalents granted and outstanding 2,815,196

ADS available for future grants under employee incentive plan 4,806,549

36

ADS Shares for Earnings-per-ADS Calculation

Date Activities

Weighted

Average ADS

Shares

October 1, 2012 Ordinary share balance1 67,725,673

October 1, 2012 RSUs vested and not exercised 2,263,946

Fourth Quarter 2012 Share options exercised and RSUs vested 69,703

December 31, 2012 ADSs outstanding – basic 70,059,322

December 31, 2012 Share options and equivalents 1,629,104

December 31, 2012 ADSs outstanding – diluted 71,688,426

1 541,805,384 ordinary shares, with each ADS representing eight ordinary shares