Slide 1: Q2 2023 Earnings Call Presentation
Q2 2023 Earnings Call Presentation August 2, 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 Strong Execution in Challenging Macro Conditions Revitalized Portfolio Delivering Results Well Positioned for Future Growth ©2023 Waters Corporation 2
Slide 4: Q2 2023 Results
Q2 2023 Results CC Organic Q2 2023 Revenue Revenue Growth Q2 2023 EPS $741M +3% Non-GAAP Reported: +4% M&A: +2% FX: (1%) $2.80 CC Organic CC Organic Recurring Instrument Growth Revenue Growth Growth (2%) +7% +2% +8% Ex-China CC: Constant Currency Growth rates are versus prior year Note: A reconcilia
Slide 5: Delivering Continued Strong Execution
Delivering Continued Strong Execution Instrument Revenue Recurring Revenue Operational Excellence +19% +7% Mass Spec 2Q23 Recurring 2Q23 200bps+ Pricing Y/Y As Reported Growth +17% Y/Y Organic CC Growth* +7% YTD-23 YTD-23 YTD-23 +11% +100bps Margin 58.9% TA Div 2Q23 Service YTD-23 YTD-23 GM Expansio
Slide 6: Innovation Driving Results in Areas of High Unmet Need
Innovation Driving Results in Areas of High Unmet Need Enhanced Resolution at Fast Speeds; Outgrowing PFAS Market by 2x Strong Adoption in Metabolomics & Imaging Eliminates Common User Errors by up to 40%; Supporting Strong Growth in Battery Testing Innovation Drives Instrument Replacement Note: Mar
Slide 7: Instrument Growth Vectors are Stronger Than Ever
Instrument Growth Vectors are Stronger Than Ever Waters Total Instrument Revenue Growth USD as reported Additional Growth Vectors vs. Historical Trends + Greater +20% +5% CAGR Prescription 2006-2022 Volume +10% + Pricing + Large Mol 0% Process Development Process Optimization Process Control, QA/QC
Slide 8: Continuing to Invest in Bioanalytical Characterization
Continuing to Invest in Bioanalytical Characterization RAW M AT ERIAL S UPSTREAM DOWNSTREAM QA / QC FOR 1 2 3 4 Bioanalytical TESTING DEVELOPMENT M AN U F AC T U RING BIOLOGICS Characterization Fingerprinting components Characterization of clones Measurement of critical Critical quality attribute fo
Slide 9: Investing in Bioseparations
Investing in Bioseparations Waters and Princeton Announce Research Collaboration Advancing research in large molecule drug discovery and development using novel bioseparation and purification techniques Bioseparations $1.4BN 8-10% TAM Growth* Launch of xBridge Premier GTx BEH Size Exclusion Chromato
Slide 10: Q2 2023 Organic Revenue Stratification
Q2 2023 Organic Revenue Stratification 12% 11% 27% OPERATING END 35% 36% SEGMENTS MARKETS PRODUCTS & GEOGRAPHY SERVICES 45% 32% 57% 88% 38% 19% Growth %* Growth %* Growth %* Growth %* Waters +2% Pharma (4%) Asia (5%) Instruments (2%) TA +11% Industrial +11% Americas +7% Chemistry +5%** Academic & +8
Slide 11: FY & Q3 2023 Guidance
FY & Q3 2023 Guidance FY 2023 Q3 2023 Organic Constant Currency Organic Constant Currency Revenue Growth vs. FY 2022 Revenue Growth vs. Q3 2022 +0.5% to +1.5% -4% to -2% FX 0% ; M&A +2.5% FX +1% ; M&A +4% Reported Growth +3% to +4% Reported Growth +1% to +3% Non-GAAP EPS Non-GAAP EPS $12.20 to $12.3
Slide 12: Leaving The World Better Than We Found It
Leaving The World Better Than We Found It ©2023 Waters Corporation 11
Slide 13: Appendix
Appendix GAAP to Non-GAAP Reconciliations
Slide 14: Sales Stratification – Q2 2023 Reported & Organic CC Growth
Sales Stratification – Q2 2023 Reported & Organic CC Growth % Growth % Growth % Growth Impact of Impact of (in millions USD) 2023 2022 Reported Currency Constant Acquisitions Organic Constant Currency Currency Operating Waters $ 653.2 $ 635.2 3% (1%) 4% 2% 2% Segments TA $ 87.3 $ 79.2 10% (1%) 11% 0
Slide 15: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Earnings Per Share Q3 2023 and FY 2023 Guidance Q3 2023 FY 2023 Q2 Q2 Range Range 2023 2022 Projected Sales GAAP $ 2.55 $ 2.72 Organic constant currency sales growth rate* (4.0%) - (2.0%) 0.5% - 1.5% Impact of: Adjustments: Currency translation 1.0% - 1.0% – - – Purc
Slide 16: Slide 16