Waters Corporation · NYSE:WAT

Waters — Investor Day (May 2022)

83 slides from Waters's investor day presentation, May 19, 2022

  1. Slide 1: 2022 Analyst & Investor Day

    2022 Analyst & Investor Day May 19, 2022

  2. Slide 2: Caspar Tudor

    Caspar Tudor Head of Investor Relations ©2022 Waters Corporation 1

  3. Slide 3: Cautionary Statements

    Cautionary Statements 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 deemed forward-looking statements.

  4. Slide 4: Today's Agenda

    Today’s Agenda Q&A Dr. Udit Batra Jon Pratt Jianqing Bennett Amol Chaubal President & Chief SVP, SVP, SVP, Panel Executive Officer Waters Division TA Instruments Division Chief Financial Officer and Clinical Business Appointed September 2020; Appointed 2019; previously Appointed 2021; previously App

  5. Slide 5: Dr. Udit Batra

    Dr. Udit Batra President & Chief Executive Officer ©2022 Waters Corporation 4

  6. Slide 6: Key Messages

    Key Messages Attractive and Resilient Base Waters Back on Track Executing Growth Plan ©2022 Waters Corporation 5

  7. Slide 7: Waters at a Glance

    Waters at a Glance $2.8B 30.2% 1 2021 Revenue 2021 Operating Margin 7,800+ 35+ Employees Worldwide Countries with Operations Note: 1. Operating margin is adjusted non-GAAP operating margin percentage. See reconciliation of the non-GAAP measures to the most directly comparable GAAP measures in the Ap

  8. Slide 8: Large and Growing End Markets

    Large and Growing End Markets Industrial & Applied Pharma F O O D & E N V I R O N M E N T MSD P H A R M A HSD 30%  Safe food, water, and environmental  Manufacturing volume; health; population growth biologics and novel modalities; outsourcing WATERS 2021 M A T E R I A L S MSD 60% REVENUES  Batte

  9. Slide 9: Leadership Positions Across Whole Portfolio #1 – #3

    Leadership Positions Across Whole Portfolio #1 – #3 Waters Portfolio (select products shown) Liquid Mass TA Precision Enterprise Service Chromatography Spectrometry Instruments Chemistry Informatics TM TM DISCOVERY HR TM TM TM TM TM DISCOVERY TGA INSTRUMENTS RECURRING REVENUES ©2022 Waters Corporati

  10. Slide 10: A Simple and Repeatable Business Model

    A Simple and Repeatable Business Model 150K+ installed base 1 5-to-7-year replacement cycle 2 Embedded within Top 50 Pharma Companies Simple #1 Chromatography Data System Compliant Efficient Deep understanding of For High Volume customer unmet needs Applications 3 Innovator in small Strong technical

  11. Slide 11: Enables Excellent Financials

    Enables Excellent Financials Organic Sales Growth1 Operating Margin 2 ROIC3 2-yr CAGR FY20-21 FY-21 Avg FY19-21 40% 7% 30% 23% 5% 12% Peer Average Peer Average Peer Average Note: 1. Based on calculations comparing Waters’ FY20-FY21 2-yr CAGR constant currency organic growth rate with that of peers,

  12. Slide 12: Key Messages

    Key Messages Attractive and Resilient Base Waters Back on Track Executing Growth Plan ©2022 Waters Corporation 11

  13. Slide 13: Transformation on Track

    Transformation on Track Regained Commercial Momentum Built a Strong Team Growth Plan on Track ©2022 Waters Corporation 12

  14. Slide 14: Specific Commercial Initiatives

    Specific Commercial Initiatives Market+ Growth Drivers 1 Instrument Replacement 2 Service Attachment +~100bps average 3 Contract Organizations growth 2022–24 4 eCommerce Adoption 5 Launch Excellence ©2022 Waters Corporation 13

  15. Slide 15: Regained Commercial Momentum

    Regained Commercial Momentum Organic Revenue Growth In Constant Currency 7.5 – 9% 7% 6% 4% 10% Market Growth Range 1% 2017 2018 2019 2020 - 21 FY 2022 (2-yr Stacked) Guidance Note: Showing Waters’ year-over-year growth rate from 2017 through 2019 then two year stacked analysis for years 2020 and 202

  16. Slide 16: Continuing Strength Q1 2022

    Continuing Strength Q1 2022 Q1 2022 Waters Constant Currency Revenue Growth: +16% Y/Y Portfolio Geography Customer Instruments +26% Americas +26% Pharmaceutical +19% Service +9% Europe +9% Industrial +17% Chemistry +8% China +17% Academic & Govt. +4% TA +18% APAC (ex-China) +12% Note: A reconciliati

  17. Slide 17: New Leadership Capabilities in Place

    New Leadership Capabilities in Place Dr. Udit Batra CEO Jon Pratt Jianqing Bennett Dan Welch Amol Chaubal Dr. Dan Rush Kristen Garvey Dr. Belinda Hyde Keeley Aleman Waters Division TA Instruments Operations CFO & IT Strategy & Communications HR Legal Division & Transformation Clinical Business LOVE

  18. Slide 18: Innovation Contributing Strongly (1/2)

    Innovation Contributing Strongly (1/2) Launched Launched Launched June 2020 February 2021 October 2020 Fastest column Demand grew 3x Y/Y* launch in Waters history Note: *1Q22 Unit sales of Arc HPLC and Acquity Premier were over 3x 1Q21 levels ©2022 Waters Corporation 17

  19. Slide 19: Innovation Contributing Strongly (2/2)

    Innovation Contributing Strongly (2/2) 50% 15x faster analysis time More sensitive 50% reduction in environmental footprint 50% smaller size TM Source: Waters TQ Absolute product specifications versus those published for a competitor’s leading high-performance TQ MS system, with full details availab

  20. Slide 20: Key Messages

    Key Messages Attractive and Resilient Base Waters Back on Track Executing Growth Plan ©2022 Waters Corporation 19

  21. Slide 21: Waters of the Future

    Waters of the Future Problems Teams We Like, Unique That Matter Respect, and Trust Contribution ©2022 Waters Corporation 20

  22. Slide 22: Simple Business Model Applied to Problems That Matter

    Simple Business Model Applied to Problems That Matter Core Pharma QA/QC, Food and Environmental Safety, Clinical Diagnostics, Materials Testing… Evaluation of Problems That Matter Bioprocess 1 UNMET NEEDS Bio-separations 1 Characterization 2 Simple Deep understanding of Compliant Efficient 2 PROOF O

  23. Slide 23: Access to High-Growth Adjacencies

    Access to High-Growth Adjacencies Market Size Market Growth Bio-separations Separating and purifying newer modalities ~$1.2BN HSD - DD Bioprocess Decoupling the process from the product for Characterization ~$0.5BN DD+ manufacturing of large molecules LC-MS in An unbiased, multiplexed, multiomic, an

  24. Slide 24: A Problem Worth Solving

    A Problem Worth Solving Separating the Process from the Product ©2022 Waters Corporation 23

  25. Slide 25: Collaborations Accelerate Progress

    Collaborations Accelerate Progress Sampling Instruments Data analytics ©2022 Waters Corporation 24

  26. Slide 26: Commitment to Leave the World a Better Place

    Commitment to Leave the World a Better Place ENVIRONMENTAL SOCIAL GOVERNANCE Reduce our environmental Grow with culture of Enhance long-term shareholder footprint diversity and inclusion value with effective oversight >50% of direct procurement Waters Historically Black 44% of executive leadership a

  27. Slide 27: Key Messages

    Key Messages Attractive and Resilient Base Waters Back on Track Executing Growth Plan ©2022 Waters Corporation 26

  28. Slide 28: Jon Pratt

    Jon Pratt Senior Vice President, Waters Division ©2022 Waters Corporation 27

  29. Slide 29: Waters Division: Leader in Attractive Growth Markets

    Waters Division: Leader in Attractive Growth Markets Applying Our Proven …in End Markets with Sustainable …Across High-Volume Business Model… Growth Drivers… Applications Manufacturing QA/QC 1 2 Late-stage drug development Food and Pharmaceuticals Environmental Contract organization services 4 Food

  30. Slide 30: Market-Leading Portfolio with #1 - #3 positions

    Market-Leading Portfolio with #1 - #3 positions Waters Portfolio Liquid Mass Precision Enterprise Service Chromatography Spectrometry Chemistry Informatics TM TM TM TM TM TM TM  Routine testing  Quantitative testing in  LC columns and Sample  Maintain peak  Regulatory regulation-driven Preparat

  31. Slide 31: Driving Sustainable Growth

    Driving Sustainable Growth 1 2 3 Solving Problems Execution Journey Portfolio That Matter in High- and Impact Innovation Growth Adjacencies ©2022 Waters Corporation 30

  32. Slide 32: Traction on the Execution Journey

    Traction on the Execution Journey Alignment Commercial Muscle Building  Waters Division (R&D, Product  CRM and Digital Demand Management, Commercial Org)  Talent and Training  Prioritization and accountability in product development  Focused sales territories and simple, globally aligned KPIs 

  33. Slide 33: Results Encouraging

    Results Encouraging Q1 2022 Constant Currency Growth Europe Talent China +9% +17% Americas APAC +26% ´ (ex-China) Commercial +12% Execution Faster-growing Segments Note: Sales growth rates above are in constant currency. Sales growth rates above are in constant currency. A reconciliation of these no

  34. Slide 34: Execution Initiatives Fueling 'Quality' of the Growth

    Execution Initiatives Fueling ‘Quality’ of the Growth Market+ Growth Drivers Operational Steps Taken 2022 Est. Impact 1 Instrument Replacement  New digital sales tools (CRM) $40M+  Performance management and KPIs Est. 2022 Contribution 2 Service Attachment  Inside sales team +100bps  POS quoting

  35. Slide 35: Innovation Supporting Strong Instrument Replacement

    Innovation Supporting Strong Instrument Replacement  Full LC portfolio upgraded in the last 24 months $60M+ New Product Contribution 2022 EST  Example ARC HPLC… Arc HPLC + Premier  Improved precision Replacement initiative remains on-track Launched in 2020 and robustness with expected, multi-year

  36. Slide 36: Biologics – Increasing Share with Innovation

    Biologics – Increasing Share with Innovation Large molecule is now ~30% of our pharma sales vs. ~20% in 2018*  Advancing the separation of EXAMPLE APPLICATION: Oligonucleotides biologics and complex molecules UPLC custom designed for biologics & novel  Eliminates binding to metal modality applicat

  37. Slide 37: Improving Mass Spectrometry

    Improving Mass Spectrometry Highly Competitive, Revitalized MS Portfolio Core Mass More Powerful, More Compact, More Cost Efficient than any other mass spec in its class Spectrometry  Quantitation applications across Pharma, Food & Environmental  Improved biopharma performance & oligonucleotide bi

  38. Slide 38: Building on Our Strong Informatics Position

    Building on Our Strong Informatics Position #1 Chromatography Data System Embedded within Top 50 Pharma Companies ~ 80% of the molecules submitted to the FDA and EMA for drug approvals in 2021 Robust data processing, storage were done using Empower software1 and reporting for regulated workflows Gol

  39. Slide 39: High-Growth Opportunity in Bioprocess Characterization

    High-Growth Opportunity in Bioprocess Characterization UNMET PROOF OF CONCEPT POTENTIAL 1 NEEDS 2 E X AM P L E S 3 OPPORTUNITY Higher level of process control and better analytics in bioprocessing applications Manufacturing Pilot Plant Speed to Market is Critical BioAccord accelerates initial clone

  40. Slide 40: Building Key Capabilities for Emerging Therapies

    Building Key Capabilities for Emerging Therapies New modalities are moving into the therapeutic pipeline but are Charge Detection too heavy to be measured by conventional mass spec Mass Spec (CDMS) Allows rapid analysis of intact large molecules, including: Small molecules proteins nanoparticles Vir

  41. Slide 41: Summary

    Summary  Strong commercial execution with Execution precision and discipline  Unified R&D and Commercial  Revitalized portfolio (instrument New Products replacement, new applications)  Innovation unlocking higher-growth areas  New accounts (including contract orgs) New Customers  High-growth o

  42. Slide 42: Jianqing Bennett

    Jianqing Bennett Senior Vice President, TA Instruments Division & Clinical Business ©2022 Waters Corporation 41

  43. Slide 43: TA Division Serves Material Science Applications

    TA Division Serves Material Science Applications Applying Our …in End Markets with …Across High-Volume Proven Business Model… Sustainable Growth Drivers… Applications 1 Characterizing advanced materials 2 Advanced Consumer Evaluating shelf stability of APIs Materials Staples Formulating and optimizi

  44. Slide 44: Strong Portfolio with Potential in High-Growth Applications

    Strong Portfolio with Potential in High-Growth Applications THERMAL TESTING VISCOSITY & STRESS-STRAIN Example: Optimize energy density Example: Determine processability of and safety of batteries sustainable polymers CHARACTERIZE MOLECULAR BINDING MECHANICAL TESTING Example: Protein-to-protein Examp

  45. Slide 45: Increasing Exposure to Fast Growing Segments

    Increasing Exposure to Fast Growing Segments  Energy Storage DD Batteries & Renewable Energy High-  Electric Vehicles Growth Focus  Sustainable Polymers Areas HSD Advanced Materials  Composites  Medical devices MSD Life Sciences  Biopharma Strong  Food LSD Food and Agricultural Science  Agri

  46. Slide 46: Leading Testing Capabilities in Batteries Manufacturing

    Leading Testing Capabilities in Batteries Manufacturing OUR INSTRUMENTS SOLVE KEY RESEARCH & TESTING NEEDS ACROSS THE BATTERY VALUE CHAIN Raw Battery Cell Battery Recycling & End-use Materials Materials Production Module/Pack Second life Thermal Analysis Rheology Microcalorimetry Characterize materi

  47. Slide 47: Transformation in Sales Targeting and Lead Conversion

    Transformation in Sales Targeting and Lead Conversion Targeted Digital Marketing Effective targeting Increase in has increased Sales Higher-Growth Geographies sales funnel Conversion New Sales Tools (CRM) & Performance Management (KPIs) Solving Key Customer Problems ©2022 Waters Corporation 46

  48. Slide 48: Strong Financial Performance

    Strong Financial Performance Organic Sales Growth 16% Americas +7% 8% Europe +11% Asia +33% FY20 – 21 1Q22 (2-yr CAGR) (Year-over-Year) Note: Showing TA two year stacked analysis for years 2020 and 2021 to adjust for the distorting effects of the Covid-19 pandemic, followed by our current 1Q22 year

  49. Slide 49: Waters Has An Established Clinical Business

    Waters Has An Established Clinical Business EXAMPLE: NEWBORN SCREENING Therapeutic Newborn Drug Monitoring Screening ~$200M Waters 2021 Clinical Revenues Testing small sample size for multiple analytes simultaneously. Fast & cost effective  Rapid high-throughput analysis in <2 minutes  Ability to

  50. Slide 50: Why Mass Spectrometry for Clinical Diagnostics?

    Why Mass Spectrometry for Clinical Diagnostics? A powerful platform for identifying and quantifying proteins, peptides, metabolites, and lipids in a biological sample.​ Highly Specific Highly Large Rapid and Identification Sensitive Dynamic Range Multiplex Isolates a single mass Detects at parts-per

  51. Slide 51: Unlocking the Power of Mass Spec for Diagnostics

    Unlocking the Power of Mass Spec for Diagnostics We all know mass spec is a powerful diagnostic tool, but why has widespread adoption not occurred yet?​ Ease of Use 1 MS is complex, requiring highly skilled operators PROBLEMS Turn-Around-Time 2 TO SOLVE From sample to clinical report can take severa

  52. Slide 52: Waters is Uniquely Positioned for Mass Spec Diagnostics

    Waters is Uniquely Positioned for Mass Spec Diagnostics We take complex technology and make it Simple, Robust, & Easy to Use, in high volume applications WATERS KEY VALUE DRIVER: Sample Enrichment & Mass Spec Data Processing & Providing simple, Preparation Separation Detection Clinical Reporting opt

  53. Slide 53: Amol Chaubal

    Amol Chaubal Senior Vice President, Chief Financial Officer ©2022 Waters Corporation 52

  54. Slide 54: Robust Shareholder Value Creation Model

    Robust Shareholder Value Creation Model 1 2 3 Growth Margin Expansion Capital Deployment  Regained Commercial  Industry-leading margins  Strong free cash flow and Momentum  Broad Margin Expansion balance sheet flexibility  Market+ Execution Opportunities  Investing in growth  High-Growth Adja

  55. Slide 55: Regained Commercial Momentum

    Regained Commercial Momentum Organic Revenue Growth In Constant Currency 7.5 – 9% 7% 6% 4% 10% Market Growth Range 1% 2017 2018 2019 2020 - 21 FY 2022 (2-yr Stacked) Guidance Note: Showing Waters’ year-over-year growth rate from 2017 through 2019 then two year stacked analysis for years 2020 and 202

  56. Slide 56: 2021: Commercial Momentum Regained

    2021: Commercial Momentum Regained FY 2021 10% Revenue 28% 35% $2.8BN END MARKETS PRODUCTS & GEOGRAPHY 39% SERVICES 47% 30% 2YR CC 60% CAGR 33% 18% +7% 2YR CC CAGR | CC vs. PYR 2YR CC CAGR | CC vs. PYR 2YR CC CAGR | CC vs. PYR CC Growth Pharma +10% | +19% Asia +7% | +19% Instruments +6% | +23% vs. P

  57. Slide 57: Strong Start to 2022

    Strong Start to 2022 Revenue Instruments United States EPS Q1 2022 Q1 2022 CC Growth vs. PYR CC Growth vs. PYR Non-GAAP $691M +26% +28% $2.80 Revenue Recurring Revenue China Growth CC Growth vs. PYR CC Growth vs. PYR CC Growth vs. PYR vs. PYR +16% +9% +17% +22% +13% As Reported CC: Constant Currency

  58. Slide 58: Achieving Market+ Growth

    Achieving Market+ Growth 2YR Stacked (2020-21) 1Q 2022 Y/Y Organic Revenue Growth in Constant Currency Organic Revenue Growth in Constant Currency 7% 16% Peer Average 5% 10% Note: Charts based on calculations comparing Waters’ FY20-FY21 2-yr CAGR organic growth rate and year-over-year organic growth

  59. Slide 59: Well-Positioned for Future Above-Market Growth in Our Core

    Well-Positioned for Future Above-Market Growth in Our Core Market+ Growth Drivers 2022 and Beyond 1 Instrument Replacement Disciplined, ongoing replacement Revenue Contribution program 2 Service Attachment +1000 bps Plan coverage as % of i-base further potential in L-T +~100bps 3 Contract Organizati

  60. Slide 60: Solving Critical Problems in High-Growth Adjacencies

    Solving Critical Problems in High-Growth Adjacencies Market Size Market Growth  Bio-separations Separating and purifying newer modalities ~$1.2BN HSD - DD Bioprocess Decoupling the process from the product for Characterization ~$0.5BN DD+ manufacturing of large molecules LC-MS in An unbiased, multi

  61. Slide 61: Revenue Growth Outlook

    Revenue Growth Outlook + High Growth Adjacencies Market+ Execution Market+ Execution +100 bps +100 bps M AR K E T + BEYOND M AR K E T + +5-7% Market Growth Market Growth CC Growth +4% to +6% +4% to +6% Near-Term NEAR-TERM (2023) MID-TERM (2024+) MSD End-Market Exposure MSD-HSD End-Market Exposure Al

  62. Slide 62: Robust Shareholder Value Creation Model

    Robust Shareholder Value Creation Model 1 2 3 Growth Margin Expansion Capital Deployment  Regained Commercial  Industry-leading margins  Strong free cash flow and Momentum  Broad Margin Expansion balance sheet flexibility  Market+ Execution Opportunities  Investing in growth  High-Growth Adja

  63. Slide 63: Industry-Leading Financial Profile

    Industry-Leading Financial Profile Operating Margin 2021 Adj. OPM  Customer Proximity 30.2%  Well-Established Business Model 22.6%  Brand Equity  Premium Positioning  High-Volume Applications  Applications in Regulated Settings Peer Average  Financial Discipline Operating margin is adjusted n

  64. Slide 64: Broad Set of Margin Expansion Opportunities

    Broad Set of Margin Expansion Opportunities PRODUCTIVITY PRODUCTIVITY VOLUME LVEOVLEURMAEG E  Operational Excellence L E V E R AG E in Manufacturing  Direct & In-Direct MIIXX Procurement Programs M  Manufacturing & Service Fixed  Value Engineering  Recurring Costs P R I C IIN P NGG revenue grow

  65. Slide 65: Margin Expansion Outlook

    Margin Expansion Outlook + PRODUCTIVITY +100bps + PRODUCTIVITY + VOLUME LEVERAGE + VOLUME Beyond LEVERAGE + MIX +20-30bps Net Annual + PRICING + PRICING Expansion - REINVEST - REINVEST High-Growth Adjacencies -70-80bps NEAR-TERM (2023) MID-TERM (2024+) All forecasts and data represents forward-looki

  66. Slide 66: Robust Shareholder Value Creation Model

    Robust Shareholder Value Creation Model 1 2 3 Growth Margin Expansion Capital Deployment  Regained Commercial  Industry-leading margins  Strong free cash flow and Momentum  Broad Margin Expansion balance sheet flexibility  Market+ Execution Opportunities  Investing in growth  High-Growth Adja

  67. Slide 67: Earnings Leverage

    Earnings Leverage Revenue EPS Non-GAAP 5% 30% 5-yr Avg 11% CAGR 2,786 $11.20 Operating CAGR 2,167 Margin $6.62 26% 5-yr Avg FCF as % of sales 2016 2021 2016 2021 Note: 5-year average operating margin rate percentage and 5-year average free cash flow as % of sales are from periods 2017-2021 and repre

  68. Slide 68: Industry-Leading Financial Profile

    Industry-Leading Financial Profile Free Cash Flow (FCF) to Sales Return on Invested Capital (ROIC) 3-yr Average 2019-21 3-yr Average 2019-21 40% 26% 15% 12% Peer Average Peer Average Note: Charts based on calculations comparing Waters 3-year average free cash flow to sales and return on invested cap

  69. Slide 69: Capital Deployment Priorities

    Capital Deployment Priorities RETURN GROWTH CAPITAL  Fully fund high-ROI organic growth  Share buybacks to remain primary & margin expansion opportunities means of returning capital  Disciplined capital deployment with  Balanced Capital Deployment primary focus on M&A approach  Target meaningfu

  70. Slide 70: EPS Growth Outlook

    EPS Growth Outlook + ACCRETIVE M&A & SHARE BUYBACK + SHARE BUYBACK + MARGIN EXPANSION + SHARE BUYBACK + MARGIN EXPANSION + MARGIN EXPANSION MARKET+ GROWTH MARKET+ + MARKET GROWTH HIGH-GROWTH GROWTH ADJACENCIES HISTORIC PERFORMANCE NEAR-TERM (2023) MID-TERM (2024+) Note: All forecasts and data repres

  71. Slide 71: Exciting Outlook for the Company

    Exciting Outlook for the Company ► 1 Energized Team with an Indomitable Spirit ► 2 Strong Core Serving Increasingly Attractive Markets ► 3 Simple and Repeatable Business Model ► 4 Innovation and Commercial Execution Driving Market+ Growth ► 5 Expanding into High-Growth Adjacencies ©2022 Waters Corpo

  72. Slide 72: Q&A

    Q&A ©2022 Waters Corporation 71

  73. Slide 73: Thank you for your continued interest in Waters

    ir.waters.com Investor_Relations@Waters.com Thank you for your continued interest in Waters ©2022 Waters Corporation 72

  74. Slide 74: Appendix: GAAP to Non-GAAP Reconciliations

    Appendix GAAP to Non-GAAP Reconciliations

  75. Slide 75: Non-GAAP Financial Measures

    Non-GAAP Financial Measures This presentation contains financial measures, such as constant currency growth rate, adjusted operating income, adjusted earnings per diluted share and free cash flow, among others, which are considered “non-GAAP” financial measures under applicable U.S. Securities and E

  76. Slide 76: Reconciliation of GAAP to Adjusted Non-GAAP Net Sales

    Reconciliation of GAAP to Adjusted Non-GAAP Net Sales by Operating Segments, Products & Services, Geography and Markets Fiscal Years 2021 - 2016 (in thousands) Percent Change 2021 vs. 2020 2020 vs. 2019 2019 vs. 2018 2018 vs. 2017 2017 vs. 2016 2-YR CAGR - 2021 vs. 2019 Fiscal Year Constant Constant

  77. Slide 77: Operating Income Reconciliation of GAAP to Adjusted Non-GAAP

    Operating Income Reconciliation of GAAP to Adjusted Non-GAAP Fiscal Years Ended December 31, 2021 - 2017 (in thousands) 5 Year Operating Income as Percentage of Sales 30% Operating Operating Income Income Percentage 2021 GAAP $ 821,707 29.5% Adjustments: Purchased intangibles amortization 7,143 0.3%

  78. Slide 78: Operating Income Reconciliation of GAAP to Adjusted Non-GAAP (continued)

    Operating Income Reconciliation of GAAP to Adjusted Non-GAAP (continued) Fiscal Years Ended December 31, 2021 - 2017 (in thousands) Operating Operating Income Income Percentage 2018 GAAP $ 739,774 30.6% Adjustments: Purchased intangibles amortization 7,712 0.3% Restructuring costs and certain other

  79. Slide 79: Reconciliation of Actual GAAP Cashflow to Non-GAAP Free Cash Flow

    Reconciliation of Actual GAAP Cashflow to Non-GAAP Free Cash Flow Fiscal Years Ended December 31, 2021 - 2017 (in millions) 2021 2020 2019 2018 2017 Net Cashflow from Operating Activities - GAAP $ 747 $ 791 $ 643 $ 604 $ 697 Less: Additions to property plant, equipment, and software capitalization $

  80. Slide 80: Reconciliation of GAAP to Adjusted Non-GAAP Net Sales Q1 2022

    Reconciliation of GAAP to Adjusted Non-GAAP Net Sales by Operating Segments, Products & Services, Geography and Markets Q1 2022 vs. Q1 2021 Currency % Growth % Growth in '000 USD 2022 2021 Impact Reported CC 2022 vs. 2021 Operating Waters $ 613,156 $ 541,878 13% $ (15,856) 16% Segments TA $ 77,416 $

  81. Slide 81: Reconciliations of GAAP to Adjusted Non-GAAP EPS & 2022 Guidance

    Reconciliations of GAAP to Adjusted Non-GAAP Earnings Per Diluted Share & 2022 Guidance Earnings Per Share Q2 & FY 2022 Guidance Q1 Q1 Q2 2022 FY 2022 2022 2021 Range Range GAAP $ 2.62 $ 2.37 Projected constant-currency sales growth rate* 6.0% - 8.0% 7.5% - 9.0% Adjustments: Projected currency impac

  82. Slide 82: Reconciliation of GAAP to Adjusted Non-GAAP Earnings Per Diluted Share

    Reconciliation of GAAP to Adjusted Non-GAAP Earnings Per Diluted Share Fiscal Years Ended 2021, 2020, 2019, 2018, 2017, & 2016 2021 2020 2019 2018 2017 2016 GAAP $ 11.17 $ 8.36 $ 8.69 $ 7.65 $ 0.25 $ 6.41 Adjustments: Purchased intangibles amortization 0.09 0.14 0.11 0.08 0.06 0.09 Asset Impairment

  83. Slide 83: ir.waters.com

    ir.waters.com Investor_Relations@Waters.com ©2022 Waters Corporation 82

Waters — Investor Day (May 2022) on 6ix