Slide 1: Q3 2023 Earnings Call Presentation
Q3 2023 Earnings Call Presentation November 7, 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: Key Messages
Key Messages Continued Strong Commercial Execution Operational Excellence in Tough Macro Conditions Well Positioned for Long-Term Growth ©2023 Waters Corporation 2
Slide 4: Q3 2023 Results
Q3 2023 Results CC Organic Q3 2023 Revenue Revenue Growth Q3 2023 EPS $712M (4%) Non-GAAP Reported: +0.4% M&A: +4% FX: 0% $2.84 CC Organic CC Organic Recurring Instrument Growth Revenue Growth Growth (13%) +4% +8% (5%) Ex-China +7% Ex-China CC: Constant Currency Growth rates are versus prior year No
Slide 5: Commercial Execution Yielding Strong Results
Commercial Execution Yielding Strong Results Third Quarter and Year-to-Date Organic Sales Growth in Constant Currency (as of 3Q23) Excluding China Including China Y/Y 2-YR* 4-YR** Y/Y 2-YR* 4-YR** Pharma +5% +6% +8% (2%) +3% +6% Non-Pharma (3%) +8% +6% (6%) +8% +4% 3Q23 Total +2% +7% +7% (4%) +5% +6
Slide 6: Operational Excellence Initiatives Resulting in Margin Expansion
Operational Excellence Initiatives Resulting in Margin Expansion 3Q23 YTD-23 Gross Margin 59.1% 59.0% 1 Pricing Expansion +240bps +160bps Y/Y Y/Y 2 Productivity 3Q23 YTD-23 Adj. Operating 3 Cost Optimization 31.5% 29.4% Margin Expansion +380bps +60bps Y/Y Y/Y Note: Operating margin results and perce
Slide 7: Instrument Growth Vectors are Stronger Than Ever
Instrument Growth Vectors are Stronger Than Ever Waters Total Instrument Revenue Growth Incremental Growth Vectors USD as reported vs. Historical Trends + 20% +5% CAGR + Greater 2006-2022 Prescription Volume + 10% + Pricing + Large Mol Process Development 0% Process Optimization Process Control, QA/
Slide 8: Innovation Addressing Customers' Unmet Needs
Innovation Addressing Customers’ Unmet Needs Highly Competitive, Broadly Revitalized Portfolio Liquid Mass TA Precision Chromatography Spectrometry Instruments Chemistry TM ©2023 Waters Corporation 7
Slide 9: Continued Progress in Bioanalytical Characterization
Continued Progress in Bioanalytical Characterization Two New Launches in 3Q23 Automated measurements of size and particle concentration Bioanalytical Analyze and quantify viral Characterization vectors, lipid nanoparticles, peptides, proteins, nucleic acids, and more. $1.8BN 10-12% TAM Growth* RAW M
Slide 10: Q3 2023 Organic Revenue Stratification
Q3 2023 Organic Revenue Stratification 12% 11% 28% OPERATING END 35% 37% PRODUCTS & SEGMENTS MARKETS GEOGRAPHY 44% SERVICES 30% 59% 88% 37% 19% Growth %* Growth %* Growth %* Growth %* Waters (4%) Pharma (2%) Asia (12%) Instruments (13%) TA (4%) Industrial (8%) Americas 0% Chemistry +1%** Academic &
Slide 11: FY & Q4 2023 Guidance
FY & Q4 2023 Guidance FY 2023 Q4 2023 Organic Constant Currency Organic Constant Currency Revenue Growth vs. FY 2022 Revenue Growth vs. Q4 2022 -2% to -1% -8% to -5% FX -1.5% ; M&A +2.5% FX -1.5% ; M&A +3.5% Reported Growth -1% to flat Reported Growth -6% to -3% Non-GAAP EPS Non-GAAP EPS $11.65 to $
Slide 12: Upcoming 2023 ESG Report
Upcoming 2023 ESG Report Key ESG Disclosure Updates Further reduction of emissions Increased renewable energy use Initiated TCFD Disclosure ©2023 Waters Corporation 11
Slide 13: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations
Slide 14: Sales Stratification – Q3 2023 Reported & Organic CC Growth
Sales Stratification – Q3 2023 Reported & Organic CC Growth % Growth % Growth Impact of (in millions USD) 2023 2022 Impact of Currency Organic Constant Reported Acquisitions Currency Waters 629.3 623.4 1% 0% 5% (4%) Operating Segments TA 82.3 85.2 (3%) 1% (0%) (4%) Pharmaceutical 421.5 406.0 4% 1% 6
Slide 15: Sales Stratification – Q3 & YTD 2023 Reported & Organic CC Growth
Sales Stratification – Q3 & YTD 2023 Reported & Organic CC Growth % Growth Reported % Organic CC % % Growth Impact of Impact of Organic % Growth % Growth (in millions USD) 2023 2022 2022 2021 2-YR CAGR 2-YR CAGR Reported Currency Acquisitions Constant Reported CC ‘23 vs. ‘21 ‘23 vs. ‘21 Currency End
Slide 16: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Earnings Per Share Q3 2023 and FY 2023 Guidance Q4 2023 FY 2023 Q3 Q3 2023 2022 Range Range Projected Sales GAAP $ 2.27 $ 2.60 Organic constant currency sales growth rate* (8.0%) - (5.0%) (2.0%) - (1.0%) Adjustments: Impact of: Currency translation (1.5%) - (1.5%) (1
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