Slide 1: Q4 2023 Earnings Call Presentation
Q4 2023 Earnings Call Presentation February 6, 2024
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 Strong Execution in Tough Macro Conditions Transformation is Delivering Well Positioned for Future Growth ©2024 Waters Corporation 2
Slide 4: Q4 & FY 2023 Results
Q4 & FY 2023 Results CC Organic Q4 2023 Revenue Revenue Growth Q4 2023 EPS Non-GAAP $819M (8%) Reported: (4.5%) M&A: +3% FX: 0% $3.62 CC Organic FY 2023 Revenue Revenue Growth FY 2023 EPS Non-GAAP $2,956M (2%) $11.75 Reported: (0.5%) M&A: +2.5% FX: (1%) CC: Constant Currency Growth rates are versus
Slide 5: Continued Strong Execution in Tough Macro Conditions
Continued Strong Execution in Tough Macro Conditions 3Q23 to 4Q23 As Reported Revenue Ramp1 (in $ and % Growth) Total Americas Europe Asia 3Q23 4Q23 3Q23 4Q23 3Q23 4Q23 3Q23 4Q23 $198M $254M $238M $262M $712M $819M $275M $304M +$108M +15% +$28M +10% +$56M +28% +$24M +10% FY-23 Organic Sales Growth i
Slide 6: Excellent Operational Performance
Excellent Operational Performance Strong Margin Results Despite Volume, FX, Inflationary Pressures 1 Pricing 4Q23 FY-23 Gross Margin 61.2% 59.6% Expansion +170bps +160bps 2 Productivity Y/Y Y/Y Proactive Cost 3 4Q23 FY-23 Alignment Adj. Operating 34.9% 30.9% Margin Expansion +120bps +70bps Y/Y Y/Y N
Slide 7: Creating Value with M&A
Creating Value with M&A M&A Execution: Ahead of Plan for Synergy Progress 2023 PROGRESS GOAL / KPI Geographic Initiated direct sales & Segment Achieved Expansion Lead-sharing ahead of expectations +2.5% 2023 PROGRESS FY-23 sales GOAL / KPI Waters SEC columns launched contribution Industry-Leading Li
Slide 8: Our Transformation is Delivering
Our Transformation is Delivering Strong results in Renewed portfolio Progress into challenging market addressing the needs higher-growth conditions of our customers adjacent markets ©2024 Waters Corporation 7
Slide 9: Revitalized Portfolio Setting New Standards
Revitalized Portfolio Setting New Standards Innovation driving customer spend in 2023 constrained capex environment Liquid Chromatography Mass Spectrometry TA Instruments Precision Chemistry Accelerates battery safety, 17x faster, 12x more Eliminates common user Class-leading PFAS quality, performan
Slide 10: Expansion into Higher Growth Segments
Expansion into Higher Growth Segments Adjacencies progress yielding growth accretion $12B TAM 20% Biologics of Pharma Revs 35% of Pharma Revs Large Mol Large Mol Clinical MSD DD 3-yr sales 3-yr sales CAGR 2017-191 CAGR 2021-232 Batteries Vs. 2019 levels 10x Growth Note: $12B Core TAM + $7B Higher Gr
Slide 11: Well Positioned for Future Growth
Well Positioned for Future Growth Waters % Revenue Growth (Y/Y Constant Currency 2010-23) Incremental Growth Vectors vs. Historical Trends2 Instruments 20% 6% Average1 1 Higher Volume Growth 10% 5% 2010-2023 Faster Prescription growth Avg1 Regulations (PFAS) 0% -10% 2 New Applications Large mo
Slide 12: Greater Testing Volume Growth from New Therapies and PFAS
Greater Testing Volume Growth from New Therapies and PFAS Drivers of Testing Volume Acceleration 55 novel drugs approved by the FDA in 2023, second highest GLP-1s Expected count ever with a record number of biologics3 Therapies Revenue Growth New therapeutic areas expected to accelerate QA/QC testin
Slide 13: Successfully Pivoting Portfolio to Large Molecule Applications
Successfully Pivoting Portfolio to Large Molecule Applications Liquid Chromatography Linked Detectors UV Mass Spec MALS Solvent Reservoir Well-positioned to solve customer Degasser challenges with Chemistry novel modalities Columns Formulation MEASUREMENT MEASUREMENT MEASUREMENT development Pump
Slide 14: Q4 2023 Organic Revenue Stratification
Q4 2023 Organic Revenue Stratification 11% 13% 31% 33% END 35% OPERATING PRODUCTS & MARKETS GEOGRAPHY SEGMENTS SERVICES 47% 33% 56% 18% 87% 36% Growth %* Growth %* Growth %* Growth %* Pharma (11%) Asia (16%) Instruments (20%) Waters (9%) Industrial (4%) Americas (2%) Chemistry +3%** TA (2%) Academic
Slide 15: FY 2023 Organic Revenue Stratification
FY 2023 Organic Revenue Stratification 12% 12% 28% END 35% 36% OPERATING PRODUCTS & MARKETS GEOGRAPHY SEGMENTS SERVICES 45% 31% 57% 37% 19% 88% Growth %* Growth %* Growth %* Growth %* Pharma (5%) Asia (7%) Instruments (10%) Waters (3%) Industrial 0% Americas +1% Chemistry +4% TA +3% Academic & +7% +
Slide 16: FY & Q1 2024 Guidance
FY & Q1 2024 Guidance Organic Constant Currency Organic Constant Currency Revenue Growth vs. FY 2023 Revenue Growth vs. Q1 2023 FX (1%); M&A +1.3% FX (1%); M&A +3.5% Reported Growth 0% to +2% Reported Growth (8.5%) to (6.5%) NON-GAAP EPS NON-GAAP EPS $11.75 to $12.05 $2.05 to $2.15 Based on current
Slide 17: ESG Highlights: Leaving the World Better Than We Found It
ESG Highlights: Leaving the World Better Than We Found It Environmental Social Governance Reducing our most significant Becoming more representative Enhancing long-term stakeholder environmental impacts. of the society we live in. value with effective oversight. 2024 Public Company ~77% 100/100 Boar
Slide 18: Appendix
Appendix GAAP to Non-GAAP Reconciliations
Slide 19: Sales Stratification – Q4 2023 & FY 2023 Reported & Organic CC Growth
Sales Stratification – Q4 2023 & FY 2023 Reported & Organic CC Growth % Growth Impact of % Growth Organic (in millions USD) 2023 2022 Impact of Currency Reported Acquisitions Constant Currency Q4 QTD Waters 716.9 754.8 (5%) 0% 4% (9%) Operating Segments TA 102.5 103.8 (1%) 1% 0% (2%) Pharmaceutical
Slide 20: Net Sales by End Markets – Reconciliation of GAAP to Adjusted Non-GAAP
Net Sales by End Markets – Reconciliation of GAAP to Adjusted Non-GAAP Full-Year 2023 Reported & Organic CC Growth % Growth End Markets % Growth Impact of Impact of Organic % Growth % Growth (in millions USD) 2023 2022 2022 2021 Full-Year (Total) Reported Currency Acquisitions Constant Reported CC C
Slide 21: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations (a) The purchased intangibles amortization, a Operating Income Reconciliation of GAAP to Adjusted Non-GAAP non-cash expense, was excluded to be consistent with how management evaluates the performance of its core business against Q4 2023 Q4 2023 Operating Q4 2022 Q4
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Earnings Per Share Q1 2024 and FY 2024 Guidance Q4 2023 Q4 2022 FY 2023 FY 2022 Projected Sales Q1 2024 FY 2024 GAAP $ 3.65 $ 3.81 $ 10.84 $ 11.73 Organic constant currency (11.0%) - (9.0%) (0.5%) - 1.5% Adjustments: sales growth rate* Purchased intangibles amortizat
Slide 23: Waters