Waters Corporation · NYSE:WAT
Waters — Merger or Acquisition (July 2025)
24 slides from Waters's merger presentation, Jul 14, 2025
Slide 1: Creating a Life Science Tools & Diagnostics Leader
Biosciences & Diagnostic Solutions CREATING A Life Science Tools & Diagnostics Leader Focused on Regulated, High-Volume Testing July 14, 2025
Slide 2: Disclaimer
Disclaimer Biosciences & Diagnostic Solutions Additional Information and Where to Find It: This communication is not intended to and does not constitute an offer to sell or the solicitation of an materialize, or should underlying assumptions prove incorrect, these developments could have a material
Slide 3: Today's Speakers
Today’s Speakers Biosciences & Diagnostic Solutions Dr. Udit Batra Tom Polen Amol Chaubal Christopher DelOrefice Waters President BD Chairman, Waters SVP, BD EVP, & Chief Executive Officer CEO & President Chief Financial Officer Chief Financial Officer 2025 WATERS CORPORATI ON 2
Slide 4: A Strong, Shared Culture of Pioneering Science
A Strong, Shared Culture of Pioneering Science Biosciences & Diagnostic Solutions 50+ Years 50+ Years Defining Separations Advancing the Field Science with Liquid of Biology with Chromatography Best-in-Class Innovators Flow Cytometry Biosciences & Diagnostic Solutions 1965 2019 R. B. Woodward Kaelin
Slide 5: A Significant Value Creation Opportunity
A Significant Value Creation Opportunity Biosciences & Diagnostic Solutions Creates an Innovation Leader …Serving High Volume, Regulated with Robust Financial Strength… Applications w/ Industry-Leading Brands Large TAM w/ Consistent Growth Drivers 1 Doubles Waters TAM to ~$40B at 5-7% growth in a br
Slide 6: Large TAM w/ Growth Tied to Consistent Volume Expansion
Large TAM w/ Growth Tied to Consistent Volume Expansion Biosciences & Diagnostic Solutions End-Markets & Demand Drivers Why it Matters STABLE GROWTH Quality Testing of Pharmaceuticals DRIVERS Pharma QA/QC End-Points in Late-Stage Pharma Trials (MSD-HSD) # of Biologic Medicines Food & T R U LY Expand
Slide 7: Unmatched Strategic Fit
Unmatched Strategic Fit Biosciences & Diagnostic Solutions Opportunity to Apply Waters Cross-Selling in Accelerates Stated Proven Execution Model to Highly Complementary Strategic Ambitions in Multiple BD Biosciences/Dx Customer Segments High Growth Adjacencies Instrument Replacement Accelerate BioS
Slide 8: Increases Resilience & Growth Stability
Increases Resilience & Growth Stability Biosciences & Diagnostic Solutions >80% of Revenue from Iconic Brands… … >70% Annually Recurring Revenue Annually Recurring Revenue Biosciences & Diagnostic Solutions FACSLyric Clinical™ >70% >80% FACSDiscover™ BACTEC™ Kiestra™ BD MAX™ Instruments >50% Replace
Slide 9: An Industry Leading Financial Outlook
An Industry Leading Financial Outlook Biosciences & Diagnostic Solutions Biosciences & Diagnostic Solutions SYNERGIES Biosciences & Diagnostic Solutions + MSD+ Historic Sales Growth ~ $290M Expected Revenue Synergies MSD-HSD Near-To-Mid-Term Expected Sales Growth Commercial Excellence + High-Growth
Slide 10: Transaction Expected to Yield Outstanding Financial Benefits
Transaction Expected to Yield Outstanding Financial Benefits Biosciences & Diagnostic Solutions Significant Synergies An Industry-Leading Meaningful, Rapid Strong Free Cash & Value Creation Financial Outlook Accretion Flow Profile EXPECTED EXPECTED EXPECTED EXPECTED ~$345M MSD-HSD EPS Accretive 2.3x
Slide 11: BD Biosciences/Diagnostics is a Leader in Upstream & Clinical
BD Biosciences/Diagnostics is a Leader in Upstream & Clinical Biosciences & Diagnostic Solutions 3 Software Leadership in Flow Informatics ™ 1 Flow Cytometry Microbiology Fast-Growing Molecular Dx ™ 25K+ 40K+ FDA-cleared AI workflow applications for microbiology 80%+ Installed Base (Biosciences) ins
Slide 12: An Innovation Leader w/ Uniquely Differentiated Portfolio
An Innovation Leader w/ Uniquely Differentiated Portfolio Biosciences & Diagnostic Solutions Biosciences ~$1.5B FY-24 GAAP REVENUE Diagnostic Solutions ~$1.8B FY-24 GAAP REVENUE $7B New Breakthrough Products $15B New Breakthrough Products TAM; HSD% growth TAM; MSD+% growth1 FACSDiscover™ S8 Next-gen
Slide 13: Attractive Financial Profile & Business Mix
Attractive Financial Profile & Business Mix Biosciences & Diagnostic Solutions Innovative portfolio and highly differentiated Product Type Geography capabilities in attractive end-markets Service China Single Cell 10% Microbiology 13% LATAM Multiomics 35% 5% APAC 1% Well-established in Strong invest
Slide 14: Waters is a Leader in Downstream, Regulated Applications
Waters is a Leader in Downstream, Regulated Applications Biosciences & Diagnostic Solutions 170K+ Liquid Mass installed base4 1 Chromatography Spectrometry Instruments replaced every 5-7 years Compliant Informatics Leader Chromatography Data System Thermal Light Analysis Scattering ~80% of novel dru
Slide 15: Have Orchestrated Successful Transformation at Waters
Have Orchestrated Successful Transformation at Waters Biosciences & Diagnostic Solutions Built Commercial Momentum Strengthened Innovation Entered High Growth Adjacencies 2019 NOW PRE-2019 NOW Biologics 20% 35% Instrument EMBEDDED Bioseparations of Pharma Revs of Pharma Revs OPERATING CADENCE Bioana
Slide 16: Strong Financial Profile & Operating Performance
Strong Financial Profile & Operating Performance Biosciences & Diagnostic Solutions Waters Standalone Financials Academic & Govt 11% $3B Industrial 31% 58% Pharma ADJ. EBITDA MARGIN (CY-24) Total Revenue (CY-24) 37% WAT Peer Avg 27% Europe $1.1B 30% 33% Asia Adj. EBITDA (CY-24) 37% FCF AS % OF REV A
Slide 17: Accelerates Innovation Journey into BioSeparations
Accelerates Innovation Journey into BioSeparations Biosciences & Diagnostic Solutions to Create a Category-Defining Creating Company Next-Generation Separation Columns by Pairing Deep Chemistry & Biology Expertise CHEMISTRY CHEMISTRY Innovation leader in Separations AAV Advanced titer options for Ne
Slide 18: Positions Flow Cytometry into Bioanalytical Characterization
Positions Flow Cytometry into Bioanalytical Characterization Biosciences & Diagnostic Solutions Brings Flow Downstream into Large Molecule QA/QC Small mol data Large mol data FDA EMA NMPA Others UV Mass Mass Light Flow Detection Spectrometry Scattering Cytometry Receptor Interaction & biological res
Slide 19: Scales Capabilities & Presence for Multiplex Diagnostics
Scales Capabilities & Presence for Multiplex Diagnostics Biosciences & Diagnostic Solutions Addition of BD Diagnostics will Accelerate Automation w/ Core Lab Value Creation in ‘LC-MS into Dx’ Analyzer Adjacency Accelerate Automated Reagents Assay Menu Sample Prep Expansion Elevate 24/7 Service Metho
Slide 20: Substantial Financial Benefits Expected
Substantial Financial Benefits Expected Biosciences & Diagnostic Solutions Cost Synergies by Year 3 Revenue Synergies by Year 5 Commercial Excellence Mfg. & Supply Chain $80M Instrument Replacement $115M Service Attach & eCommerce Launch Excellence EPS accretive High Growth Adjacencies in Yr 1 Comme
Slide 21: An Industry-Leading Financial Outlook
An Industry-Leading Financial Outlook Biosciences & Diagnostic Solutions Compelling 5-Year Growth Projection CY 2025E CY 2030E Revenue Growth CAGR (CY 2025-30) MSD-HSD $6.5B $9.0B Total Revenue (CY PF 25E) Adj. EBITDA Growth +$1.3B Total Revenue (CY PF 30E) $2.0B 1 Adj. EBIT Margin Expansion ~ 500bp
Slide 22: Transaction Overview
Transaction Overview Biosciences & Diagnostic Solutions Structure & Ownership ► BD to separate its Biosciences and Diagnostic Solutions business to BD shareholders and simultaneously merge SpinCo (which will own the Biosciences/Dx business) with a wholly owned subsidiary of Waters in a tax-efficient
Slide 23: Summary: Two Businesses Uniquely Suited for Each Other
Summary: Two Businesses Uniquely Suited for Each Other Biosciences & Diagnostic Solutions Creates an Innovation Leader …Serving High Volume, Regulated with Robust Financial Strength… Applications w/ Industry-Leading Brands Large TAM w/ Consistent Growth Drivers 1 Doubles Waters TAM to ~$40B at 5-7%
Slide 24: Q&A Session
CREATING A Life Science Tools & Diagnostics Leader Focused on Regulated, High-Volume Testing Q&A Session