Slide 1: Q2 2024 Earnings Call Presentation
Q2 2024 Earnings Call Presentation July 31, 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 Continues Solid Operational Results Innovative Portfolio Serving Attractive Markets ©2024 Waters Corporation 2
Slide 4: Q2 2024 Results
Q2 2024 Results CC Organic Q2 2024 Revenue Revenue Growth Q2 2024 EPS $709M (4%) Non-GAAP Reported: (4%) M&A: +2% FX: (2%) $2.63 CC Organic CC Organic Recurring Instrument Growth Revenue Growth Growth (17%) +5% (6%) CC: Constant Currency; growth rates are versus prior year Note: A reconciliation of
Slide 5: Strong M&A Execution in First Year of Wyatt Acquisition
Strong M&A Execution in First Year of Wyatt Acquisition Revenue Synergies Performing Well 2 GOAL / KPI 2024 PROGRESS Geographic Scaled up direct sales & Segment Expansion Expanded lead-sharing framework 2024 PROGRESS +2% M&A GOAL / KPI Additional new SEC columns Increased launched in 1Q24 Contributi
Slide 6: Excellent Operational Performance
Excellent Operational Performance Resilient Margins Despite Headwinds from Volume, FX, & Inflation 1 Pricing 2Q23 2Q24 2Q22 59.3% 59.3% Gross Margin 57.0% 2 Productivity Proactive Cost 3 2Q23 2Q24 Alignment Adj. Operating 2Q22 29.6% 29.2% 28.4% Margin Note: Operating margin results and percentage gr
Slide 7: New Product Launches in Q2 Solve Unmet Needs
New Product Launches in Q2 Solve Unmet Needs Xevo MRT Acquity QDa II Mass Detector Industry Leading Benchtop Mass Spec Resolution Enhanced Routine Compound Identification Accelerates drug discovery and early-stage Identifies large molecules more accurately in pharma development workflows late-stage
Slide 8: We Serve Attractive, Secular Markets Driven by Testing Volume
We Serve Attractive, Secular Markets Driven by Testing Volume Downstream Serving High Volume, Strong Margin & Presence Regulated Applications Free Cash Flow Profile 59.6% Pharma QA/QC testing Gross Margin (FY-23) Late-Stage Drug Development Food & Environmental Safety 30.9% Adj. Operating Margin1 (F
Slide 9: Our Revitalized Portfolio is Highly Competitive
Our Revitalized Portfolio is Highly Competitive Significant New Products Launched Since 2019 – Key Highlights: Core High Growth Adjacencies HPLC Chemistry Mass Spec Bioanalytical Battery Testing LC-MS into Dx Large & Small Molecule Bioseparations Routine Detection Characterization TA Division Clinic
Slide 10: Aged Installed Base Suggests Catch-Up Opportunity Ahead
Aged Installed Base Suggests Catch-Up Opportunity Ahead Long-Term Historical Instrument Replacement and Fleet Expansion Instrument Growth is MSD Have Temporarily Fallen Below Trend Organic CC Total Instrument % Growth Organic CC Total Instrument Revenue 20% +5% +1% 1,400 CAGR 1 1,200 CAGR 2 Instrume
Slide 11: Q2 2024 Organic Revenue Stratification
Q2 2024 Organic Revenue Stratification Academic & 10% Government Service (16%) Pharma +5%** Instruments 39% 41% (4%) (17%) END MARKETS c Growth % 58% 32% * PRODUCTS & SERVICES Growth %* Industrial (4%) Chemistry 20% +5%** TA 12% Europe 28% 0% 34% (7%) GEOGRAPHY c Growth % * Asia (3%) OPERATING SEGME
Slide 12: FY & Q3 2024 Guidance
FY & Q3 2024 Guidance Organic Constant Currency Constant Currency Revenue Growth vs. FY 2023 Revenue Growth vs. Q3 20231 FX (1.5%); M&A +1.3% FX (1.5%) Reported Growth (2.2%) to (0.7%) Reported Growth (0.5%) to +1.5% NON-GAAP EPS NON-GAAP EPS $11.55 to $11.65 $2.60 to $2.70 Based on current FX rate
Slide 13: Appendix
Appendix GAAP to Non-GAAP Reconciliations
Slide 14: Sales Stratification – Q2 2024 Reported & Organic CC Growth
Sales Stratification – Q2 2024 Reported & Organic CC Growth % Growth Impact of % Growth Organic (in millions USD) 2024 2023 Impact of Currency Reported Acquisitions Constant Currency Waters 622.6 653.2 (5%) (2%) 3% (6%) Operating Segments TA 86.0 87.3 (2%) (2%) 0% 0% Pharmaceutical 415.7 426.7 (3%)
Slide 15: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Income Reconciliation of GAAP to Adjusted Non-GAAP Q2 2024 Q2 2024 Operating Q2 2023 Q2 2023 Operating Q2 2022 Q2 2022 Operating (in thousands USD) Operating Income Income Percentage Operating Income Income Percentage Operating Income Income Percentage GAAP
Slide 16: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Earnings Per Share FY 2024 and Q3 2024 Guidance Q2 2024 Q2 2023 Projected Sales FY 2024 Q3 2024 Organic constant currency GAAP $ 2.40 $ 2.55 (2.0%) - (0.5%) 1.0% - 3.0% sales growth rate* Adjustments: Impact of: Currency translation (1.5%) - (1.5%) (1.5%) - (1.5%) Pu
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