Slide 1: Q4 2022 Earnings Call Presentation
Q4 2022 Earnings Call Presentation February 15, 2023
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
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
Slide 3: Next Step in the Execution of Our Strategy
Next Step in the Execution of Our Strategy Leader in Light Scattering Technology for 40+ years ©2023 Waters Corporation 2
Slide 4: Key Messages
Key Messages Consistently Strong Execution Innovation Revitalized Next Phase of Growth ©2023 Waters Corporation 3
Slide 5: Q4 2022 Results
Q4 2022 Results CC Revenue Growth Q4 2022 Revenue vs. PYR EPS Q4 2022 $859M +9% Non-GAAP +3% As Reported $3.84 CC Instrument Growth CC Recurring Rev Growth Growth vs. PYR vs. PYR vs. PYR +5% +10% +7% -8% FX Headwind Impact CC: Constant Currency PYR: Prior Year Note: A reconciliation of these non-GAA
Slide 6: FY 2022 Results
FY 2022 Results CC Revenue Growth FY 2022 Revenue vs. PYR EPS FY 2022 $2,972M +12% Non-GAAP +7% As Reported $12.02 CC Instrument Growth CC Recurring Rev Growth Growth vs. PYR vs. PYR vs. PYR +7% +16% +9% -9% FX Headwind Impact CC: Constant Currency PYR: Prior Year Note: A reconciliation of these non
Slide 7: Next Phase for Waters: Entering High-Growth Adjacencies
Next Phase for Waters Entering High-Growth Adjacencies Regained Commercial Momentum Bioanalytical Characterization Innovation Revitalized New Leadership Capabilities Investing in organic and inorganic growth Note: Market growth rates are Waters internal estimates based on long-term historical data
Slide 8: Manufacturing Biologics is a Complex Process
Manufacturing Biologics is a Complex Process… MONOCLONAL ANTIBODY EXAMPLE D O WN S T R E AM 3 M AN U F AC T U R I N G RAW M AT E R I AL S 1 T E S T I NG Raw materials Purification and Reagents & polishing LC-MS LC-UV Virus inactivation Viral clearance Clarification Seed Concentration train Clone and
Slide 9: Requiring Multiple Technologies for Bioanalytical Characterization
...Requiring Multiple Technologies for Bioanalytical Characterization RAW MATERIALS UPSTREAM DOWNSTREAM QA / QC FOR 1 T E S TIN G 2 DEVELOPMENT 3 M A N U F AC TUR IN G 4 B IO L O G IC S Bioanalytical Characterization $1.8BN 10-12% LC-UV TAM Growth LC-MS Others LC-UV DLS LC-MALS DLS LC-MS LC-MALS OTH
Slide 10: Wyatt: The Pioneer of Light Scattering for 40+ Years
Wyatt: The Pioneer of Light Scattering for 40+ Years Highly Innovative Company Strong Financial Profile High Growth Applications Strong reputation and track record High quality products demonstrated by Industry leading solutions in for science and innovation premium pricing and high margins fast gro
Slide 11: Integration gives Comprehensive Critical Quality Attribute Profile
Integration gives Comprehensive Critical Quality Attribute Profile... Liquid Chromatography Detector Measurement Compliance Titer Solvent Aggregation Reservoir UV Degasser Chemistry Sequence Columns Charge variants Filter Mass Spec Post-translational modifications Consolidated Pump regulatory submis
Slide 12: Creating Significant Value
…Creating Significant Value Compelling Synergies Attractive Pro-Forma Large Molecule % of pharma revenues 2023- Expected to create Geographic + Segment Increased Attachment End-Market Growth Expansion $70M+ in CC Revenue CAGR annualized 5-YR: 2023-27 revenue 1 2 synergies by Operating Margin year 5
Slide 13: Transaction Highlights
Transaction Highlights Growth and margin accretive with rapid EPS accretion Purchase price $1.36BN Growth & Margin Immediately accretive to Revenue Growth and Adjusted Operating Margin EPS Accretion Accretive to EPS starting in Q1 2024 ROIC High Single Digit + adjusted ROIC anticipated by year 5 Fin
Slide 14: Q4 2022 Revenue Stratification
Q4 2022 Revenue Stratification $104M $98M $319M $246M $463M 12% 11% $256M 29% OPERATING END 30% SEGMENTS MARKETS PRODUCTS & GEOGRAPHY SERVICES 37% 54% 31% 16% $268M 58% 88% 34% $755M $493M $140M $293M Growth %* Growth %* Growth %* Growth %* Waters +8% Pharma +6% Asia +7% Instruments +10% TA +15% Ind
Slide 15: FY 2022 Revenue Stratification
FY 2022 Revenue Stratification $345M $310M $1,132M $785M $1,463M 12% 10% $984M 26% OPERATING END 33% SEGMENTS MARKETS PRODUCTS & GEOGRAPHY SERVICES 38% 49% 31% $910M 59% 18% 88% 36% $2,626M $1,752M $525M $1,056M Growth %* Growth %* Growth %* Growth %* Waters +12% Pharma +10% Asia +12% Instruments +1
Slide 16: FY & Q1 2023 Guidance
FY & Q1 2023 Guidance FY 2023 Q1 2023 Organic Constant Currency Constant Currency Revenue Growth vs. FY 2022 Revenue Growth vs. Q1 2022 +5% to +6.5% +4% to +6% FX -1% ; M&A +2 to +3% Reported Growth +0% to +2% Reported Growth +6% to +8.5% Non-GAAP EPS Non-GAAP EPS $12.70 to $12.90 $2.55 to $2.65 (Ex
Slide 17: Key Messages
Key Messages Consistently Strong Execution Innovation Revitalized Next Phase of Growth ©2023 Waters Corporation 16
Slide 18: Appendix
Appendix I) BioAccord Slide II) GAAP to Non-GAAP Reconciliations
Slide 19: LC-MS Already Gaining Traction in Bioanalytical Characterization with BioAccord
I) LC-MS Already Gaining Traction in Bioanalytical Characterization with BioAccord UPSTREAM RAW MATERIALS DOWNSTREAM QA / QC FOR 1 TESTING 2 PROCESS 3 M ANUFACTURING 4 BIOLOGICS DEVELOPMENT CUST OMER EXAMPLES “We use BioAccord to monitor Speeding initial clone cell selection Implementing Process Ana
Slide 20: Sales Stratification – Q4 2022 Reported & CC Growth
II) Sales Stratification – Q4 2022 Reported & CC Growth % Growth Currency % Growth (in millions USD) 2022 2021 Reported Impact CC Operating Waters $ 754.8 $ 742.1 2% $ (44.8) 8% Segments TA $ 103.8 $ 94.4 10% $ (5.2) 15% Pharmaceutical $ 492.8 $ 491.9 - $ (29.1) 6% End Industrial $ 267.9 $ 247.3 8%
Slide 21: Sales Stratification – Full-Year 2022 Reported & CC Growth
II) Sales Stratification – Full-Year 2022 Reported & CC Growth % Growth Currency % Growth (in millions USD) 2022 2021 Reported Impact CC Operating Waters $ 2,626.5 $ 2,473.1 6% $ (135.3) 12% Segments TA $ 345.5 $ 312.8 10% $ (16.3) 16% Pharmaceutical $ 1,751.7 $ 1,667.1 5% $ (90.3) 10% End Industria
Slide 22: GAAP to Non-GAAP Reconciliations
II) GAAP to Non-GAAP Reconciliations Earnings Per Share Q1 2023 and FY 2023 Guidance Q4 Q4 FY FY Q1 2023 FY 2023 2022 2021 2022 2021 Range Range Projected Sales GAAP $ 3.81 $ 3.52 $ 11.73 $ 11.17 Organic constant currency sales growth rate* 4.0% - 6.0% 5.0% - 6.5% Adjustments: Impact of: Currency tr
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