Waters Corporation · NYSE:WAT
Waters — J.P. Morgan 43rd Annual Healthcare Conference (November 2025)
38 slides from Waters's conference presentation, Nov 11, 2025
Slide 1: J.P. Morgan 43rd Annual Healthcare Conference
J.P. Morgan 43rd Annual Healthcare Conference Udit Batra, Ph.D. President & CEO January 13, 2025
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 Business Model in Attractive Markets Disciplined Execution of our Growth Strategy Entering Next Phase of Waters Growth ©2025 Waters Corporation 2
Slide 4: Key Messages
Key Messages Strong Business Model in Attractive Markets Disciplined Execution of our Growth Strategy Entering Next Phase of Waters Growth ©2025 Waters Corporation 3
Slide 5: Waters Serves Regulated Markets with Large Unmet Needs
Waters Serves Regulated Markets with Large Unmet Needs Food & Academic & Pharma Clinical Environment Materials Government HSD HSD MSD MSD LSD - MSD High-quality medicines Multiplex diagnostics Pure food and water Safe renewable energy Research Biologics, Novel Modalities Endocrinology, Oncology, NBS
Slide 6: With a Simple & Repeatable Business Model
With a Simple & Repeatable Business Model 170K+ installed base4 1 Growth from Liquid Mass new applications & 2 #1 Chromatography Spectrometry instrument replacement Chromatography Data System Simple, ~80% of novel drugs submitted to FDA, EMA, China Compliant, NMPA using Empower3 Efficient D E EDeep
Slide 7: Resulting in Attractive Growth & Industry-Leading Profitability
Resulting in Attractive Growth & Industry-Leading Profitability Leads to Sales Recurrence Downstream Presence N Y S E :W AT & Best-in-Class Financials 6% Adj. Operating Margin ( T T M ) 5 $2.9B Total Revenue (TTM)2 Average1 2009-2019 WAT 30.7% Peer 1 26.4% 59.7% Gross Margin (TTM)2 Peer 2 15.9% Peer
Slide 8: High Pharma Exposure with Balanced Geographic Footprint
High Pharma Exposure with Balanced Geographic Footprint Waters $2.9B Revenue (TTM) % of Total1 11% 29% 33% 38% 43% End Products & 31% Markets1 Geography1 Services1 58% 38% 19% Academic & Pharma Industrial Asia Americas Europe Instruments Consumables Service Government Note: 1. Revenue data is based
Slide 9: With ~75% of Revenue Tied to Resilient Growth Drivers
With ~75% of Revenue Tied to Resilient Growth Drivers Pharma Discovery Academic Pharma Academic & Govt. & Govt. Development 11% Materials & Chemicals Pharmaceuticals Waters $2.9B Revenue (TTM) 58% of which >50% is Batteries & % of Total1 Manufacturing QA/QC3 Electronics Industrial & Applied 31% Phar
Slide 10: Our Volume Scales with the Molecule
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 &
Slide 11: Key Messages
Key Messages Strong Business Model in Attractive Markets Disciplined Execution of our Growth Strategy Entering Next Phase of Waters Growth ©2025 Waters Corporation 10
Slide 12: Transformation Plan Launched in 2020
Transformation Plan Launched in 2020 Regain Revitalize Enter Faster Commercial Innovation Growth Momentum Adjacencies ©2025 Waters Corporation 11
Slide 13: That we Stuck to Throughout a Volatile Market Environment
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% 10% 12% 12% 10% 4% 1% -1% -3% -2% -13% -17% -19% -23% -20% -25% COVID-19 New Growth
Slide 14: Executed Commercial Initiatives with Clear Results
1) Executed Commercial Initiatives with Clear Results 2019 Now Strong progress with ~15% of lagged Instrument Replacement 2015-19 replacement opps remaining Service Plan Attachment 43% >50% of Active I-Base of Active I-Base eCommerce Adoption 20% >40% of Chemistry Rev of Chemistry Rev Contract Organ
Slide 15: Innovation Setting New Standards
2) Innovation Setting New Standards Back to rich history of new category creation with product launches Liquid Chromatography Mass Spectrometry Chemistry Next-Gen Flagship Enhanced Detection Bioseparations Sharper Peaks World’s Most Sensitive & Minimal Smartest HPLC Tandem Quad Statistical Noise Eli
Slide 16: Expanded into Faster Growing Segments
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 Materials Testing Battery Testing
Slide 17: Bioseparations: Deliberate Focus is Yielding Results
Bioseparations: Deliberate Focus is Yielding Results % Chemistry Revenue STRONG CHEMISTRY LAUNCH SUCCESS from Large Mol1 40% +45% YTD-24 Y/ Y S A L E S G R OW TH 1 EXPANDING INNOVATION TO NOVEL MODALITIES 20% RECENT CHEMISTRY LAUNCH EXAMPLES AUG 2023 OCT 2023 APR 2024 OCT 2024 xBridge Premier OligoW
Slide 18: Building Compliant Informatics for BioAnalysis
Building Compliant Informatics for BioAnalysis F D A / E M A / N M P A SM SM Small mol data LM LM LM LM LM LM Large mol data … Mass Mass Light Capillary LC UV Others Spectrometry Detection Scattering Electrophoresis Developing Bioanalytical Characterization w/ Mix of Innovation, Partnerships, M&A ©2
Slide 19: Clinical & Batteries: High Volume Business Model Developing
Clinical & Batteries: High Volume Business Model Developing Double-Digit Growth with End-to-End LC-MS for CDx1 Clinical Dx RECENT LAUNCHES: 1. Instruments: Xevo TQ Absolute IVD System for trace-level analytes 2. Informatics: QUAN Review on waters_connect 3. Consumables: IVD Reagents for Endocrinolog
Slide 20: All While Delivering Strong Operational Performance
All While Delivering Strong Operational Performance W ATE R S R E S P O NSE GROSS M ARGIN Volume Headwinds +210bps TTM (as of 3Q24) vs TTM (as of 3Q22)1 2023-24 C H AL L E N G I NG FX M AR K E T Headwinds ENVIRONMENT ADJ. OPERATING M ARGIN2 Inflationary Pressures +80bps Productivity Pricing Proactiv
Slide 21: All While Delivering Strong Operational Performance
All While Delivering Strong Operational Performance W ATE R S R E S P O NSE Gross Margin Adj. Operating Margin (TTM-3Q24 vs TTM-3Q22) (TTM-3Q24 vs TTM-3Q22) Volume WAT 2.1 0.8 Headwinds Peer 1 -0.4 -0.7 2023-24 Peer 2 -1.1 -3.7 C H AL L E N G I NG FX M AR K E T Headwinds ENVIRONMENT Peer 3 -0.9 -4.7
Slide 22: Transformation Delivered Top TSR
Transformation Delivered Top TSR1 Regain Commercial Revitalize Enter Faster Growth Momentum Innovation Adjacencies Executed key commercial Back to rich history of Organic & inorganic growth initiatives new category creation investment yielding results Leader in Downstream, High-Volume = Life Science
Slide 23: Key Messages
Key Messages Strong Business Model in Attractive Markets Disciplined Execution of our Growth Strategy Entering Next Phase of Waters Growth ©2025 Waters Corporation 22
Slide 24: At Inflection Point as End-Mkts have Returned to Positive Growth
At Inflection Point as End-Mkts have Returned to Positive Growth Total 3Q24 Y/Y Sales Growth in Constant Currency Ex. China Inc. China Pharma +5% +3% Non-Pharma +5% +5% 3Q24 Total +5% +4% + Instruments have Returned to Growth after 7 consecutive quarters of LC decline Note: A reconciliation of these
Slide 25: Instruments Growth Catch-Up Opportunity Ahead in Near-Term
Growth Catch-Up Opportunity Ahead in Near-Term Pre-Covid Historical Growth is MSD Instruments; HSD Recurring New Replacement Cycle is Developing due to Aged Installed Base 15% 6% Instruments Org. CC 5-Yr CAGR (vs. 19)2 Average1 Total 5% 2009-2019 Total Instruments 1% 5% Avg LC 0% MS 2% -5% Meanwhile
Slide 26: Plus, Well-Positioned for Long-Term Growth
Plus, Well-Positioned for Long-Term Growth Pre-Covid Historical Growth is MSD Instruments; HSD Recurring Incremental Growth Vectors vs. Pre-Covid Trends 15% 6% 1 Higher Volume Growth Instruments Average1 5% 2009-2019 Faster Prescription growth (GLP-1s, Generics w/ patent cliff) 5% Avg Regulation
Slide 27: Sustained Contribution from Idiosyncratic Growth Drivers
Sustained Contribution from Idiosyncratic Growth Drivers GLP-1s Therapies New therapeutic areas like GLP-1s expected +30bps / yr1 to accelerate QA/QC testing Avg annual growth contribution 2024-30 from QA/QC of GLP-1 drugs PFAS PFAS detection expanding into food & materials, PFAS while growth in wat
Slide 28: Building Exceptional Position for Large Molecule Testing
Building Exceptional Position for Large Molecule Testing Liquid Chromatography Linked Detectors UV Mass Spec MALS Solvent Solving customer Reservoir large molecule Degasser challenges Chemistry Formulation Columns development Characterization M E AS U R EM ENT M E AS U R EM ENT M E AS U R EM ENT
Slide 29: Expanding our Growth Initiatives for Recurring Revenue
Expanding our Growth Initiatives for Recurring Revenue Service Chemistry Informatics P L AN AT T A C H M E N T D I G I T AL C O M M E R C E AD O P T I O N S C AL I N G P O S I T I O N & AM B I T I O N S +750bps ~40% driving incremental spend Compliant data for large Now Goal is 55% molecule workflow
Slide 30: Industry-Leading Profitability but Far from "Peak Margins"
Industry-Leading Profitability but Far from “Peak Margins” Strong Financial Profile Long-Term Opportunity for due to downstream presence Future Annual Margin Expansion high-volume, regulated, recurring 59.7% Volume Leverage 1 5% revenue growth = +50bps to Operating Margin Gross Margin (TTM) 2 Pricin
Slide 31: Uniquely Positioned for M&A
Uniquely Positioned for M&A Unlocking additional vector of EPS accretion w/ new proven capabilities FCF Clear Value Complementary Generation Creation Strong Free Cash Flow Focused on growth Scope of current portfolio Conversion can allow for opportunities with sound may offer advantaged rapid de-lev
Slide 32: Putting it all Together
Putting it all Together Raising the bar above ‘6+2+2’ with new vectors of EPS growth accretion Historic EPS Growth Algorithm Future Potential + Volume + Large Mol + Pricing + Adjacencies Historic L.T. Margin Capital EPS LT EPS Sales Growth Expansion Deployment Growth Growth Potential Note: Growth ra
Slide 33: Key Messages
Key Messages Strong Business Model in Attractive Markets Disciplined Execution of our Growth Strategy Entering Next Phase of Waters Growth ©2025 Waters Corporation 32
Slide 34: Register Now for our 2025 Investor Day
Register Now for our 2025 Investor Day EVENT REGISTRATION & SCHEDULE In-Person (Full Event) VISIT Quick RSVP for either option here: ir.waters.com 2025 Investor Day Under ‘Events’ or click here “A New Era of Growth” Virtual (Main Session Only) Wednesday, March 5, 2025 VISIT New York City ir.waters.c
Slide 35: Appendix
Appendix GAAP to Non-GAAP Reconciliations
Slide 36: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Income Reconciliation of GAAP to Adjusted Non-GAAP Reconciliation of Actual GAAP Cashflow to Non-GAAP Free Cash Flow Fiscal Years Trailing Twelve-Months (TTM) Ended September 28, 2024 Ending December 31, 2019 - 2023 Operating Operating Income (in thousands
Slide 37: Q3 2024 Sales – Pharmaceutical & Non-Pharmaceutical End Markets
Q3 2024 Sales – Pharmaceutical & Non-Pharmaceutical End Markets Reconciliation of GAAP to Adjusted Non-GAAP % Growth Impact of % Growth (in millions USD) 2024 2023 Reported Currency Constant Currency Total Company Pharmaceutical 430.1 421.5 2% (1%) 3% End Markets Non-Pharma 310.2 290.2 7% 2% 5% Tota
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