Full Press Release Details
Ph.D. President & CEO January 13, 2025
Forward-Looking Statements & Non-GAAP Financial Measures This
presentation contains forward-looking statements regarding future results and events, including financial and operational guidance and projected estimates. For this purpose, any statements that are not statements of historical fact may be deemed
forward-looking statements. Words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend," "outlook," and similar expressions (as
well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These forward-looking statements may include statements regarding future operating and financial
performance, market growth, success of our products, customer trends, and the acquisition of Wyatt Technology and the realization of the benefits thereof. Forward-looking statements in this presentation are based on Waters' expectations and
assumptions as of the date of this presentation and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which speak only as of the date hereof and should not be
relied upon as representing the Company's estimates or views as of any date subsequent to the date of this presentation. Each of these forward-looking statements involves risks and uncertainties, including risks and uncertainties associated
with the Wyatt acquisition, as well as the Company's ability to realize the expected benefits related to its various cost-saving initiatives, and actual results may differ materially from such forward-looking statements. We discuss various
factors that may cause Waters actual results to differ from those expressed or implied in the forward-looking statements in this presentation, including, but not limited to, those factors relating to the impact on Waters' operating results
throughout the Company's various market sectors or geographies from economic, environmental, regulatory, sovereign and political uncertainties, in the sections entitled "Forward-Looking Statements," "Management's
Discussion and Analysis of Financial Condition and Results of Operations", and "Risk Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the Securities and Exchange
Commission ("SEC") on February 27, 2024, as updated by the Company's subsequent filings with the SEC, including the Company's Quarterly Reports on Form 10-Q. Except as required by law, Waters does not assume any obligation to
update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. To supplement the Company's financial statements presented on a GAAP basis, the Company has provided certain non-GAAP
financial measures, such as organic constant currency revenue, adjusted operating margin, free cash flow, and non-GAAP diluted earnings per share. Management uses these non-GAAP financial measures to evaluate the Company's operating
performance in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business. Management believes that such measures are important in comparing current results with prior period results and are useful to
investors and financial analysts in assessing the Company's operating performance. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for, the financial information presented
in accordance with GAAP. Management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. The Company's definition of these non-GAAP financial measures may
differ from similarly titled measures used by others. The non-GAAP financial measures used in this presentation adjust for specified items that can be highly variable or difficult to predict. Investors are encouraged to review the reconciliation of
these non-GAAP measures to their most directly comparable GAAP financial measures using a reconciliation of these measures included in the Appendix to this presentation and which can also be found on the company's website at:
https://ir.waters.com/. 2025 Waters Corporation 1
Key Messages Strong Business Model in Attractive Markets Disciplined
Execution of our Growth Strategy Entering Next Phase of Waters Growth 2025 Waters Corporation 2
Key Messages Strong Business Model in Attractive Markets Disciplined
Execution of our Growth Strategy Entering Next Phase of Waters Growth 2025 Waters Corporation 3
Waters Serves Regulated Markets with Large Unmet Needs Food &
Academic & Clinical Pharma Environment Materials Government HSD HSD MSD MSD LSD - MSD Multiplex diagnostics High-quality medicines Pure food and water Safe renewable energy Research Endocrinology, Oncology, NBS Biologics, Novel Modalities PFAS,
Nitrosamines Batteries, Electric Vehicles Enabling Scientific Discovery $12B TAM* with 4-6% Long-Term Market Growth Rate * TAM = Total Addressable Market, where $12B of a broader $80B TAM for Analytical Instruments is serviceable by Waters core
business. Growth rates here reflect our internal analysis of historical, long-term market trend data, which are subject to future changes. TAMs and growth rates are estimates based on internal projections and represent forward-looking statements and
are subject to inherent uncertainties that could cause actual results to differ and such differences could be material. Source: Waters data and estimates, consulting data, industry reports, and market research. 2025 Waters Corporation
With a Simple & Repeatable Business Model 170K+ 4 installed base 1
Growth from #1 Liquid Mass new applications & 2 Chromatography Spectrometry Chromatography Data System instrument replacement ~80% of novel drugs Simple, submitted to FDA, EMA, China Compliant, 3 NMPA using Empower Efficient DE ED Peep UNDE
under RS stT andi A NDI ng of NG O F For High Volume CUSTOMER UNMET NEEDS Applications customer unmet needs Dedicated 4 Uniquely design & manufacture chemistry service team 3 in-house >50% of I-Base has plan attached R&D = ~10% of
Innovation leader in 1 product revenues Ranked #1 large-molecule separations 2 by Customers Note: 1. Total R&D spending as a percentage of non-service total company revenue based on trailing twelve-month (TTM) as reported, GAAP data for the
period ended September 28, 2024. 2. According to SDi 2024 Analytical & Life Science Instrumentation Service Market, Waters has the highest service satisfaction score among all instrument vendors, while according to TSIA, 2024 tNPS score over 20
points higher than benchmark average. 3. According to internal analysis, ~80% of the drugs filed with the FDA, EMA, and China National Medical Products Administration (NMPA) in 2023 were done so using our Empower software. Source: Waters data and
estimates. 4. Installed base data are estimates based on internal analysis and include Wyatt. 2025 Waters Corporation 5
Resulting in Attractive Growth & Industry-Leading Profitability
Leads to Sales Recurrence Downstream Presence NYSE:WAT & Best-in-Class Financials 5 $2.9B Adj. Operating Margin ( T T M) 6% 2 Total Revenue (TTM) 1 Average WAT 30.7% 2009-2019 Peer 1 26.4% 59.7% 2 Gross Margin (TTM) Peer 2 15.9% Peer 3 15.3%
30.7% 3 Adj. Operating Margin (TTM) Peer 4 28.4% Peer 5 30.0% 23% Serving High Volume, WAT Historical 4 Peer 6 22.5% 5-yr Avg FCF as % of Sales Long-Term Growth Regulated Applications Note: 1. Approximate average growth rates of year-over-year,
total constant currency growth from 2009 to 2019; 2. Based on trailing twelve-month (TTM) as reported, GAAP data for the period ended September 28, 2024; 3. Operating margin results are in adjusted, non-GAAP operating margin percentage terms based
on trailing twelve-month non-GAAP data for the period ended September 28, 2024. 4. FCF = Free Cash Flow where data presented is a 5-year average of annual free cash flow as a % of as-reported, GAAP revenues from 2019-2023. 5. Compares Waters
trailing twelve-month adjusted operating margin performance as of 3Q24 to that of the prior year equivalent period to total company performance of other U.S. companies in the life science tools peer group, for whom complete public data is available
throughout the relevant time periods required to effect the analysis. See reconciliations of the non-GAAP measures to the most directly comparable GAAP measures included in the Appendix of this presentation and available on the Company's
website at: https://ir.waters.com/. Source: Waters Corporation data, publicly available data. $7B Total Accessible Market 2025 Waters Corporation 6
High Pharma Exposure with Balanced Geographic Footprint 1 Waters $2.9B
Revenue (TTM) % of Total 11% 29% 33% 38% 43% End Products & 1 Geography 1 1 31% Markets Services 58% 38% 19% Academic & Pharma Industrial Asia Americas Europe Instruments Consumables Service Government Note: 1. Revenue data is based on total
trailing twelve-month (TTM) as reported, GAAP revenues for the period ended September 28, 2024 (100% = $2.9B). 2025 Waters Corporation 7
With ~75% of Revenue Tied to Resilient Growth Drivers Pharma Discovery
Academic Pharma Academic & Govt. & Govt. Development 11% Materials & Pharmaceuticals Chemicals Waters $2.9B of which >50% is 58% Revenue (TTM) 3 Manufacturing QA/QC Batteries & 1 % of Total Electronics 31% Industrial & Applied
Pharma QA/QC of which ~50% is Food & Environmental Food & Environmental Clinical 2 REVENUE TIED TO RESILIENT GROWTH DRIVERS Note: 1. Overall and reported end market segment revenue data is based on total trailing twelve-month (TTM) as
reported, GAAP revenues for the period ended September 28, 2024 (100% = $2.9B). 2. Depicted weighting to identified resilient growth drivers within each reported end market segment is based on waters internal estimates, analysis and approximations.
3. Refers to non-clinical pharma end market segment revenue. Not to scale. 2025 Waters Corporation 8
Our Volume Scales with the Molecule Pharma growth is correlated to
production volume of late-stage or commercial drugs Spec'd into testing Defining critical quality Volume scales with ongoing attributes & process with increased regulatory data control parameters manufacturing submission Discovery &
Early-Stage Pre-Clinical Late-Stage Development Manufacturing Development Generics & Biosimilars 2025 Waters Corporation 9
Key Messages Strong Business Model in Attractive Markets Disciplined
Execution of our Growth Strategy Entering Next Phase of Waters Growth 2025 Waters Corporation 10
Transformation Plan Launched in 2020 Regain Revitalize Enter Faster
Commercial Innovation Growth Momentum Adjacencies 2025 Waters Corporation 11
That we Stuck to Throughout a Volatile Market Environment 2020 2021
2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 45% Instrument Recurring 40% Org. CC Rev. Growth Org. CC Rev. Growth 26% 21% 12% 12% 10% 10% 4% 1% -1% -2% -3% -13% -17% -19% -20% -23% -25% COVID-19 New Growth Initiatives
Supply Challenges Economic Slowdown Return to Growth 1 Instrument Replacement 2 Service Attachment 3 Contract Organizations 4 eCommerce Adoption 5 Launch Excellence Note: Org. CC Rev. Growth = Organic Constant Currency Revenue Growth; growth rates
are versus prior year Note: Growth rates here reflect the analysis of Waters historical, quarterly non-GAAP sales data which is all publicly available, including the relevant GAAP to Non-GAAP reconciliations for each quarter, available on the
Company's website at: https://ir.waters.com/ 2025 Waters Corporation 12
1) Executed Commercial Initiatives with Clear Results Now 2019 Strong
progress with ~15% of lagged Instrument Replacement 2015-19 replacement opps remaining 43% >50% Service Plan Attachment of Active I-Base of Active I-Base 20% >40% eCommerce Adoption of Chemistry Rev of Chemistry Rev 15% >25% Contract
Organizations of Pharma Rev of Pharma Rev Podium position in LC, MS, Chemistry Innovation Launches w/ new products augmenting growth 2025 Waters Corporation 13
2) Innovation Setting New Standards Back to rich history of new
category creation with product launches Chemistry Liquid Chromatography Mass Spectrometry Bioseparations Next-Gen Flagship Enhanced Detection Sharper Peaks World's & Minimal Most Sensitive Smartest HPLC Statistical Noise Tandem Quad
Eliminates common user Up to 15x better sensitivity 17x faster, 12x more sensitive errors by up to 40% while 45% more compact large molecule separation Note: Estimates on this slide are comprised of internal analysis, consulting data, industry
reports and internal market research which are subject to change. 2025 Waters Corporation 14
3) Expanded into Faster Growing Segments $12B TAM +$7B TAM Strong Core
Position Faster-Growing Adjacencies Pharma QA/QC Bio-separations Late-Stage Drug Development Bioanalytical Characterization Food and Environmental Safety LC-MS in Diagnostics Clinical Diagnostics Battery Testing Materials Testing MSD - HSD
Markets HSD - DD Markets Note: $12B Core TAM + $7B Higher Growth Adjacencies TAM = $19B TAM with MSD-HSD growth. MSD = Mid single-digit., HSD = High single-digit., DD = Double-digit. Market growth rates are Waters internal estimates based on
long-term historical data for more mature markets as well as current and recent historical growth rate data for more nascent, high-growth markets. These estimates are comprised of consulting data, industry reports and market research which are
subject to change. Please refer to the Forward-Looking Statements & Non-GAAP Financial Measures on page 1. 2025 Waters Corporation 15
Bioseparations: Deliberate Focus is Yielding Results % Chemistry
Revenue STRONG CHEMISTRY LAUNCH SUCCESS 1 from Large Mol 40% +45% YTD-24 1 Y/Y SALES GROWTH EXPANDING INNOVATION TO NOVEL MODALITIES 20% RECENT CHEMISTRY LAUNCH EXAMPLES AUG 2023 OCT 2023 APR 2024 OCT 2024 xBridge Premier OligoWorks SPE GTxResolve
Launched first in- SEC columns for Workflow & Kits Premier SEC house developed AAV-based for LC-MS based columns for enzymes & Gene Therapy bioanalysis of cell & gene, reagents for novel Applications oligonucleotides mRNA & LNPs
modalities 2019 Now ~70% of our Chemistry R&D is Now Spent on Large Mol Note: 1. Approximation based on pharma segment revenue for the first nine months of 2024. 2. Waters MaxPeak chemistry sales grew 45% in organic constant currency for the
first nine months of 2024 compared with the first nine months of 2023. 2025 Waters Corporation 16
Building Compliant Informatics for BioAnalysis F D A / E M A / N M P A
SM Small mol data SM LM LM LM LM LM LM Large mol data Mass Capillary Mass Light UV LC Others Detection Electrophoresis Spectrometry Scattering Developing Bioanalytical Characterization w/ Mix of Innovation, Partnerships, M&A 2025
Waters Corporation 17
Clinical & Batteries: High Volume Business Model Developing 1
Double-Digit Growth with End-to-End LC-MS for CDx RE CE NT L A UNCHE S : 1. Instruments: Xevo TQ Absolute IVD System for trace-level analytes 2. Informatics: QUAN Review on waters_connect 3. Consumables: IVD Reagents for Endocrinology &
Immunosuppressant Drugs Supporting Analytical Workflows with New Launches RE CE NT L A UNCHE S : 1. Instruments: TA Battery Cycler Microcalorimeter & Rheo-IS Accessory 2. Informatics: TAM Assistant integrated software platform 3. Consumables:
TGA Smart Seal Pan novel consumable Note: 1. According to internal analysis, Waters average clinical revenue grew low-double-digits on average, based on FY-21, FY-22, FY-23 organic, constant currency growth rates. 2025 Waters Corporation 18
Batteries Clinical Dx
All While Delivering Strong Operational Performance W ATERS RESPONSE
GROSS MARGIN Volume Headwinds +210bps 1 TTM (as of 3Q24) vs TTM (as of 3Q22) 2023 - 24 FX CHA L L E NG I N G M A RKE T Headwinds EN VI R O N M EN T 2 ADJ. OPERATING MARGIN Inflationary +80bps Pressures Productivity Proactive Cost 1 Pricing TTM (as
of 3Q24) vs TTM (as of 3Q22) Alignment Delivering on margin expansion promise through challenging market conditions Note: 1. Compares trailing twelve-tonth (TTM) margin percentage levels as of 3Q24 to levels for the equivalent 12-month
preceding time-period as of 3Q22; 2. Operating margin results and percentage growth are in adjusted non-GAAP operating margin percentage terms. See reconciliations of the non-GAAP measures to the most directly comparable GAAP measures included in
the Appendix of this presentation and available on the Company's website at: https://ir.waters.com/. 2025 Waters Corporation 19
All While Delivering Strong Operational Performance W ATERS RESPONSE
Gross Margin Adj. Operating Margin (TTM-3Q24 vs TTM-3Q22) (TTM-3Q24 vs TTM-3Q22) 2.1 Volume 0.8 WAT Headwinds -0.4 -0.7 Peer 1 2023 - 24 -3.7 Peer 2 -1.1 FX CHA L L E NG I N G M A RKE T Headwinds -0.9 -4.7 Peer 3 EN VI R O N M EN T -1.2 -4.0 Peer 4
Inflationary 0.4 Peer 5 0.9 Pressures Productivity Proactive Cost Pricing Alignment -4.0 -3.7 Peer 6 resulting in differentiated margin results versus peers Note: Analysis compares Waters trailing twelve-month (TTM) GAAP gross margin and
adjusted non-GAAP operating margin percentage levels to levels for the equivalent 12-month preceding time-period as of 3Q22 to total company performance of other U.S. companies in the life science tools peer group, for whom complete public data is
available throughout the relevant time periods required to effect the analysis. Source: publicly available data, Waters internal company analysis. 2025 Waters Corporation 20