Waters Corporation · NYSE:WAT

Waters — Investor Day (March 2025)

87 slides from Waters's investor day presentation, Mar 5, 2025

  1. Slide 1: Waters 2025 Analyst & Investor Day

    Waters 2025 Analyst & Investor Day March 5, 2025

  2. Slide 2: Caspar Tudor, Head of Investor Relations

    Caspar Tudor Head of Investor Relations ©2025 Waters Corporation 1

  3. Slide 3: Today's Agenda

    Today’s Agenda Q&A Dr. Udit Batra Rob Carpio Jianqing Bennett Amol Chaubal Panel President and Chief Senior Vice President, Senior Vice President, Senior Vice President, & Dr. Udit Batra Executive Officer Waters Division TA Instruments & Clinical Chief Financial Officer Rob Carpio Appointed Septembe

  4. Slide 4: Forward-Looking Statements & Non-GAAP Financial Measures

    Forward-Looking Statements & Non-GAAP Financial Measures​ This presentation and the accompanying oral remarks contain forward-looking statements regarding future results and events, including financial and operational guidance and projected estimates. For this purpose, any statements that are not st

  5. Slide 5: Udit Batra, President and CEO

    Udit Batra President and CEO ©2025 Waters Corporation 4

  6. Slide 6: Key Messages

    Key Messages Leader in Downstream, High-Volume Applications Foundation Laid for Transformative Value Creation New Era of Growth ©2025 Waters Corporation 5

  7. Slide 7: Key Messages

    Key Messages Leader in Downstream, High-Volume Applications Foundation Laid for Transformative Value Creation New Era of Growth ©2025 Waters Corporation 6

  8. Slide 8: 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 Early disease detection Pure food and water Safe renewable energy Research Small Molecules, Biologics and NBS, Endocrinology PFAS

  9. Slide 9: With a Simple & Repeatable Business Model

    With a Simple & Repeatable Business Model 170K+ installed base4 1 Liquid Mass Chromatography Spectrometry Growth from new applications & 2 #1 instrument replacement Chromatography Data System Simple, ~80% of novel drugs submitted to FDA, EMA, China Compliant, Thermal Light Analysis Scattering NMPA u

  10. Slide 10: 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 1 6% Adj. Operating Margin ( F Y - 2 4 ) 4 $3.0B Total Revenue (FY-24) Average1 2 2009-2019 WAT 31.0% Peer 1 26.4% 59.4% Gross Margin (FY-24) Peer 2

  11. Slide 11: Great Team that is Executing Well

    Great Team that is Executing Well Udit Batra CEO Amol Rob Jianqing Christos Dan Keeley Cheryl Kristen Chaubal Carpio Bennett Ross Rush Aleman Kennedy Garvey CFO & IT Waters Division TA Instruments and Operations Strategy & Legal HR Communications Clinical Business Transformation LOVE FOR FOCUS ON IN

  12. Slide 12: Key Messages

    Key Messages Leader in Downstream, High-Volume Applications Foundation Laid for Transformative Value Creation New Era of Growth ©2025 Waters Corporation 11

  13. Slide 13: Successfully Enacted Bold Transformation Plan

    Successfully Enacted Bold Transformation Plan 1 2 3 Regained Commercial Revitalized Entered Faster Momentum Innovation Growth Adjacencies ©2025 Waters Corporation 12

  14. Slide 14: Regained Commercial Momentum

    1 Regained Commercial Momentum 2019 Now Disciplined execution supported 1 Instrument Replacement by systems & processes 2 Service Plan Attachment 43% of Active I-Base1 of Active I-Base 3 eCommerce Adoption 20% of Chemistry Rev2 of Chemistry Rev 4 Contract Organizations 15% of Pharma Rev3 of Pharma R

  15. Slide 15: Revitalized Innovation

    2 Revitalized Innovation New category creation with product launches Liquid Chromatography Mass Spectrometry Chemistry Sharper Peaks World’s Most Sensitive & Minimal Smartest HPLC Tandem Quad Statistical Noise Eliminates common user Up to 15x better sensitivity 17x faster, 12x more sensitive errors

  16. Slide 16: Entered Faster Growth Adjacencies

    3 Entered Faster Growth Adjacencies $12B TAM +$7B TAM Strong Core High Growth Position 1 Adjacencies 2 Pharma QA/QC Bio-separations Late-Stage Drug Development Bioanalytical Characterization Leader in Food & Environmental Safety Downstream, Clinical (LC-MS into Dx) High-Volume Chemical Analysis Appl

  17. Slide 17: Key Messages

    Key Messages Leader in Downstream, High-Volume Applications Foundation Laid for Transformative Value Creation New Era of Growth ©2025 Waters Corporation 16

  18. Slide 18: Entering a New Era of Growth

    Entering New Era of Growth 1 Embed Execution Excellence the 2 Deliver Pioneering Innovation of science 3 Scale Position in High-Growth Areas ©2025 Waters Corporation 17

  19. Slide 19: Growth Momentum Picked Up in 2H24

    Growth Momentum Picked Up in 2H24 Y/Y Sales Growth in Constant Currency 3Q24 4Q24 Europe +4% +11% Asia +6% +9% Americas +1% +6% Total +4% +8% 4Q24 Orders and Sales Grew +HSD y/y across Instruments & Recurring Revenue Note: Sales growth rates above are in constant currency. Reconciliations of these n

  20. Slide 20: Excellent Growth Set-Up Ahead

    Excellent Growth Set-Up Ahead HSD+ HSD +100 bps China +100-150 bps Incremental LSD ex- 6% Stimulus Waters India Generics +70-100 bps1 Near-to-Mid-Term GLP-1 Testing +30 bps2 Growth Drivers Biologics +40 bps3 PFAS +30 bps4 Historic Idiosyncratic Pricing Headwinds Growth Replacement During Growth Grow

  21. Slide 21: Instrument Replacement Opportunity

    1. Instrument Replacement Opportunity Next 2 to 4 Years Opportunity INSTRUMENT GROWTH 7-8% 5% +2% to +3% excess Instrument 2% growth for 2-3 yrs Org. CC Vs. Historical Past Instrument 5-Yr CAGR (vs. 19)1 Long-Term Growth Upcycles CAGR (2009-19)2 Note: 1. Approximate compound average growth rate of y

  22. Slide 22: India Expected to Add 70-100bps / Yr to Growth

    2. India Expected to Add 70-100bps / Yr to Growth Upcoming Patent Cliff Waters India Ready to Capitalize Number of Blockbusters Going off Patent1 Waters India established in 1998; Alliance a leading 1 brand in HPLC 2 ~99% of Generics submitted to FDA, EMA, China NMPA 34 +19% using Empower2 Waters In

  23. Slide 23: GLP-1 Testing Expected to Add 30bps / Yr to Growth

    3. GLP-1 Testing Expected to Add 30bps / Yr to Growth Optimized Chemistry… Best-in-Class Solutions for GLP-1 Testing 1 2 Inadequate iS HPLC PATROL resolution Vastly for key improved impurity resolution MALS 4 3 Dedicated Service Team Stationed at Top GLP-1 Manufacturers Note: Based on internal analy

  24. Slide 24: Biologics Expected to Add 40bps / Yr to Growth

    4. Biologics Expected to Add 40bps / Yr to Growth Bioseparations Bioanalytical Characterization Small mol data Large mol data FDA EMA Peptides 125Å Small proteins NMPA Proteins 250Å mAbs Large 450Å Proteins AAV 450Å Small RNA RNA, DNA 1000Å Small LNPs Large mRNA, UV Mass Capillary Light Mass Others

  25. Slide 25: PFAS Expected to Add 30bps / Yr to Growth

    5. PFAS Expected to Add 30bps / Yr to Growth Regulations Evolving Across Segments & Regions Waters Growth >40% Annually3 1 US EU JP CN 2 Drinking Water Wastewater and Non-Potable Water Food 4 Consumer 3 Products Leading Service Team Sample Mandatory monitoring Regulation at Regulation at and/or draf

  26. Slide 26: Excellent Growth Set-Up Ahead

    Excellent Growth Set-Up Ahead HSD+ HSD +100 bps China +100-150 bps Incremental LSD ex- 6% Stimulus Waters India Generics +70-100 bps1 Near-to-Mid-Term GLP-1 Testing +30 bps2 Growth Drivers Biologics +40 bps3 PFAS +30 bps4 Historic Idiosyncratic Pricing Headwinds Growth Replacement During Growth Grow

  27. Slide 27: Entering a New Era of Growth

    Entering New Era of Growth 1 Embed Execution Excellence the 2 Deliver Pioneering Innovation of science 3 Scale Position in High-Growth Areas ©2025 Waters Corporation 26

  28. Slide 28: Rob Carpio, Senior Vice President, Waters Division

    Rob Carpio Senior Vice President, Waters Division ©2025 Waters Corporation 27

  29. Slide 29: Waters Division at a Glance

    Waters Division at a Glance Market-Leading Product Portfolio… Liquid Chrom. Mass Spectrometry Light Scattering Informatics Consumables HPLC UPLC HRMS TQ MALS DLS Chemistry Columns Sample Prep & Reagents DAWN ZetaStar 124K …Supporting Downstream, High-Volume Applications in Life Sciences System Insta

  30. Slide 30: Entering a New Era of Growth

    Entering New Era of Growth 1 Embed Execution Excellence the 2 Deliver Pioneering Innovation of science 3 Scale Position in High-Growth Areas ©2025 Waters Corporation 29

  31. Slide 31: Entering a New Era of Growth

    Entering New Era of Growth 1 Embed Execution Excellence the 2 Deliver Pioneering Innovation of science 3 Scale Position in High-Growth Areas ©2025 Waters Corporation 30

  32. Slide 32: Instrument Replacement & Innovation Embedded as Base State

    Instrument Replacement & Innovation Embedded as Base State Prior Commercial Initiative List 2019 Now 1 Instrument Replacement EMBEDDED IN OUR OPERATING CADENCE 2 Service Plan Attachment 43% of Active I-Base of Active I-Base 3 eCommerce Adoption 20% of Chemistry Rev of Chemistry Rev 4 Contract Organi

  33. Slide 33: Refreshed Commercial Initiative Areas & Targets

    Going Forward: Refreshed Commercial Initiative Areas & Targets New Commercial Initiative List 2019 Today 2030 1 Service Plan Attachment 43% >50% of Active I-Base of Active I-Base of Active I-Base 2 eCommerce Adoption 20% >40% of Chemistry Rev of Chemistry Rev of Chemistry Rev 3 Contract Organization

  34. Slide 34: Best-in-Class Field Service Organization

    1 Best-in-Class Field Service Organization Field based engineers >1,400 +80% with scientific degrees Peer Set (Direct & and bench experience Indirect) Direct Market Presence & Dedicated Focus to Waters Systems <5% Attrition Rate Note: 1. According to SDi 2024 Analytical & Life Science Instrumentatio

  35. Slide 35: Service Plan Attachment: Path to 55%

    1 Service Plan Attachment: Path to 55% Fortify our #1 position in customer satisfaction  Tailored regional offerings, with tiered support  Bundle service with instrument quote at point-of-sale  Further strengthen via local partnerships outside top metro-areas  Data-driven customer segmentation &

  36. Slide 36: Enhancing eCommerce Experience to Fuel Channel Expansion

    2 Enhancing eCommerce Experience to Fuel Channel Expansion Building on strong foundation – 2x growth in channel revenue 2019-24 +20% 5-yr CAGR Improve customer buying experience from pre- to post-purchase Increase traffic & conversion through improved SEO & AI- enabled search functionality across fu

  37. Slide 37: Targeted Approach to CXO Growth

    3 Targeted Approach to CXO Growth Contract Organization Revenue Share Success Factors % of Pharma Sales Current State 25+  10pts improvement in last 5 years  Account executive and local team realigned Strategic Account 2 to match customer growth drivers and needs Penetration  Global coordination

  38. Slide 38: Moving with our Customers Towards Large Molecule

    4 Moving with our Customers Towards Large Molecule Dedicated commercial focus 50% Specific biologics 3x Î 40% portfolio offerings 20% New, complementary 2019 2024 2030 Pricing advantage for product launches Large Mol as % of WW drug sales Large Mol LC columns vs Small Mol WAT Large Mol as % of Chem

  39. Slide 39: Sustaining Price Contribution

    5 Sustaining Price Contribution Like-For-Like (SKU/SKU) Objective: 150-200 bps Y/Y Price Contribution vs. historic ~50 bps CHEMISTRY SERVICE +5% +2.5% Y/Y Realized List Price Y/Y Realized List Price ~20% ~40% Total Company Revenue Total Company Revenue +100 bps Total Revenue +100 bps Total Revenue ©

  40. Slide 40: Entering a New Era of Growth

    Entering New Era of Growth 1 Embed Execution Excellence the 2 Deliver Pioneering Innovation of science 3 Scale Position in High-Growth Areas ©2025 Waters Corporation 39

  41. Slide 41: Deliver on Pioneering Innovation

    Deliver on Pioneering Innovation = detailed further Strengthen the Core Expand in High-Growth Adjacencies Pharma QA/QC | Late-Stage Drug Development | Bio-separations | Bioanalytical Characterization Food & Environment Safety CDMS OligoWorks SEC 125 RapiZyme RNase Next Gen ©2025 Waters Corporation 4

  42. Slide 42: Our Exciting Informatics Innovation Roadmap

    Our Exciting Informatics Innovation Roadmap Initiating software journey based on two long-term value-creating vectors FDA EMA NMPA Scaling Compliant Informatics Augmenting Core Features into Large Molecule Analysis & Product Delivery Model LC-UV & Light Mass Capillary AI / ML Cloud-native Subscripti

  43. Slide 43: Leveraging AI to Accelerate Growth

    Mentioned Throughout: Leveraging AI to Accelerate Growth AI support for QC screening and noise mitigation in high- 60% 96% increase in chromatogram reduction in manual throughput, critical customer workflows review speed intervention needed LDD HSD Troubleshooting guidance & support from extensive i

  44. Slide 44: Jianqing Bennett, Clinical Business & TA Instruments

    Jianqing Bennett Senior Vice President, Clinical Business & TA Instruments ©2025 Waters Corporation 43

  45. Slide 45: Entering a New Era of Growth

    Entering New Era of Growth 1 Embed Execution Excellence the 2 Deliver Pioneering Innovation of science 3 Scale Position in High-Growth Areas ©2025 Waters Corporation 44

  46. Slide 46: Waters Clinical Business At A Glance

    Waters Clinical Business At A Glance Specialty Clinical LC-MS Labs Gold Standard in Test Performance APPLICATIONS ~5,700 Customer Accounts ©2025 Waters Corporation 45

  47. Slide 47: Rapid Clinical Growth Transformation from LSD to HSD

    Rapid Clinical Growth Transformation from LSD to HSD Recurring Revenue3 as Growth Transformation in Clinical Sales % of Total Clinical Sales4 LSD 51% CAGR (2018-2021)1 CAGR (2021-2024)2 2018 2024 Note: 1. Represents the revenue growth CAGR for the period from FY 2018 to FY 2021, calculated on a GAAP

  48. Slide 48: LC-MS is the Future of Clinical Chemistry

    LC-MS is the Future of Clinical Chemistry Tackling critical sensitivity, selectivity, cost effectiveness with multiplex diagnostics tests Screening Diagnostics Monitoring 140 Million 160 Million 200,000 Babies are born each year Global endocrine patients Therapeutic drug monitoring Need earlier dete

  49. Slide 49: LC-MS Dx Business is a Razor / Razor Blade Model

    LC-MS Dx Business is a Razor / Razor Blade Model Sample Preparation Liquid Chromatography Mass Spectrometry Data Processing Triple Quadrupole Ionize Analytes Q1 Q2 Q3 x Mobile Phase Select Fragment Select Ion Component Ion Ion Fragment Assay Reagents Columns and Mobile Phases Multiplex Assay Consuma

  50. Slide 50: Uniquely Positioned to Deliver Complete Workflows to Clinical Labs

    Uniquely Positioned to Deliver Complete Workflows to Clinical Labs ~250 methods ~100 methods + + Competitor 1 MassTrak IVD Sets for TDM and Endocrinology Consistent LC-MS Dx Test Performance ©2025 Waters Corporation 49

  51. Slide 51: Building Up Our World-Class LC-MS IVD Capabilities

    Building Up Our World-Class LC-MS IVD Capabilities Our investment since 2022  Expanded our dedicated  Expanded our dedicated IVD Reagent R&D teams and Instrument and Software space: Ireland and UK R&D teams and space > 50% increase  Added Quality & Regulatory  Global locations: Affairs capabilit

  52. Slide 52: Future Waters LC-MS Dx Solutions

    Future Waters LC-MS Dx Solutions Modular solutions built on deeper customer insights and technical expertise LC-MS Dx Adoption Criteria Waters Competition Automation Broad Regulatory Cleared Test Menu Waters LC-MS Dx platform Flexibility with Open Channels ready for industry collaboration to drive C

  53. Slide 53: Jianqing Bennett, Clinical Business & TA Instruments

    Jianqing Bennett Senior Vice President, Clinical Business & TA Instruments ©2025 Waters Corporation 52

  54. Slide 54: TA Products Serve Broad Material Science Applications

    TA Products Serve Broad Material Science Applications Broad Materials Analytical Portfolio Total Solutions for Customers Superior Customer Support High Degree of Cross-Selling Strategic Focus on High Growth Segments Batteries Advanced Materials Life Science 44K System Install Base1 Note: 1. Installe

  55. Slide 55: TA Transformation to Faster, More Resilient Growth

    TA Transformation to Faster, More Resilient Growth High Growth Segment Revenue Accelerating Growth at TA Division1 as % of Total TA Revenue2 57% 2% CAGR (2017-2019)3 CAGR (2019-2024)4 2019 2024 Note: 1. Revenue growth results presented on this slide are given on a constant currency basis, which is a

  56. Slide 56: Increasing Exposure to Fast Growing Segments

    Our Strategy: Increasing Exposure to Fast Growing Segments  Energy Storage Batteries & Renewable Energy  Electric Vehicles  Sustainable Polymers High Growth Advanced Materials  Composites Focus Areas  Semiconductors Electronics  PC Boards  Medical Devices MSD Life Science  Biopharma  Food S

  57. Slide 57: Strong Position in High Growth Battery Testing Market

    Developed Strong Position in High Growth Battery Testing Market Revenue Growth Battery Industry Thought Leadership CAGR WORKING CLOSELY WITH KEY +60%1 CUSTOMERS ACROSS THE INDUSTRY Component Cell Pack OEM 14 top 7 out of top 6 out of top 8 out of top players 10 players 10 players 10 players ~$5M INV

  58. Slide 58: Moving from Lab to Line with New Battery Solutions

    Now Moving from Lab to Line w/ New Innovative Battery Solutions Earned strong position in R&D, now seeding adoption into higher volume settings Accelerating R&D Cell and Pack Innovation Manufacturing QA/QC & Process Optimization Production Process Battery Materials R&D Battery Cell R&D Incoming QA &

  59. Slide 59: Innovative Solutions in Adv. Materials & Life Science Applications

    Innovative Solutions in Adv. Materials & Life Science Applications Compounders/ Polymer Manufacturers OEMs Converters Advanced Materials DSC TGA TMA DMA Rheology DCR APEX-1 Discovery API & Formulation Dev Manufacturing Life Sciences ITC DSC NanoDSC Rheology Rapid Screening DSC Rheo Powder DCR ©2025

  60. Slide 60: Summary: Clinical & TA Both Transformed from LSD to HSD

    Summary: Clinical & TA Both Transformed from LSD to HSD Growth Transformation in Clinical Sales Growth Transformation in TA Sales LSD LSD CAGR (2018-2021)1 CAGR (2021-2024)2 CAGR (2017-2019)3 CAGR (2019-2024)4 Note: 1. Represents the revenue growth CAGR for the period from FY 2018 to FY 2021, calcul

  61. Slide 61: Well-Positioned for New Era of Growth

    Well-Positioned for New Era of Growth 1 Embed Execution Excellence the 2 Deliver Pioneering Innovation of science 3 Scale Position in High-Growth Areas ©2025 Waters Corporation 60

  62. Slide 62: Amol Chaubal, SVP & Chief Financial Officer

    Amol Chaubal SVP & Chief Financial Officer ©2025 Waters Corporation 61

  63. Slide 63: Attractive Growth & Industry-Leading Profitability

    Waters Overview: 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 ( F Y - 2 4 ) 4 $3.0B Total Revenue (FY-24) Average1 2009-2019 WAT 31.0% Peer 1 26.4% 59.4% Gross Margin (FY-24) Peer 2

  64. Slide 64: Class-Leading Execution & Innovation in High Volume Segments

    With Class-Leading Execution & Innovation in High Vol Segments Regained Commercial Momentum with Execution Excellence the Revitalized Portfolio with of Pioneering Innovation science Invested Organically & Inorganically to Scale Position in High-Growth Areas ©2025 Waters Corporation 63

  65. Slide 65: Robust Shareholder Value Creation Model

    Robust Shareholder Value Creation Model 1 2 3 Delivering Top Unwavering Capital Deployment Into Tier Growth in LST Operational Discipline Focused Growth Areas Supported by consistent Leading P&L management Financially disciplined M&A, execution, category-defining together with margin expansion using

  66. Slide 66: Robust Shareholder Value Creation Model

    Robust Shareholder Value Creation Model 1 2 3 Delivering Top Unwavering Capital Deployment Into Tier Growth in LST Operational Discipline Focused Growth Areas Supported by consistent Leading P&L management Financially disciplined M&A, execution, category-defining together with margin expansion using

  67. Slide 67: Delivered Exceptional Growth Performance in 2H24

    Delivered Exceptional Growth Performance in 2H24 Y/Y Organic Revenue Growth in Constant Currency2 Waters 4.0% Peer Avg. -0.8% Peer range1 -5% to 3.1% Waters 8.0% Peer Avg. 3.6% Peer range1 -0.3% to 6% Note: 1. Peer competitor set includes Agilent, Bruker, Danaher, Mettler Toledo, Thermo Fisher, and

  68. Slide 68: Results Supported by Innovation

    Results Supported by Innovation… Product Benefit 4Q24 Growth 4Q24 Adoption Eliminates common user errors by up 2.2x 20% to 40% Sales Growth Q/Q1 of HPLC Sales Up to 15x better sensitivity while 20% 50% 45% more compact Sales Growth Y/Y2 of Tandem Quad sales 17x faster, 12x more sensitive large 30% H

  69. Slide 69: Incremental Growth Vectors vs. Pre-Covid Trends

    …and Incremental Growth Vectors vs. Pre-Covid Trends Pre-Covid Historical Growth is MSD Instruments; HSD Recurring Incremental Growth Vectors vs. Pre-Covid Trends 15% 6% 1 Higher Volume Growth Instruments Average1 Faster Prescription growth 5% (GLP-1s, Generics w/ patent cliff) 2009-2019 5% Avg Regu

  70. Slide 70: Idiosyncratic Growth Drivers

    Idiosyncratic Growth Drivers GLP-1s Therapies New therapeutic areas like GLP-1s expected +30bps / yr1 to accelerate QA/QC testing volume growth Avg annual est. growth contribution 2024-2030 from QA/QC of GLP-1 drugs PFAS PFAS detection expanding into food & materials, PFAS while growth in water test

  71. Slide 71: Achieving Strong Outcomes on Pricing

    Achieving Strong Outcomes on Pricing 1) Like-For-Like (SKU/SKU) 2) Upsell (Mix) Objective: 150-200 bps Y/Y Price Contribution Exceeding vs. historic ~50 bps Historic Contribution CHEMISTRY SERVICE Historic Historic New Instrument contribution to +5% +2.5% Price Premium Instrument CAGR Y/Y Realized L

  72. Slide 72: Recurring Revenue that is Truly Recurring

    Recurring Revenue that is Truly Recurring 2009 to 2019 2019 to 2024 Waters Organic Recurring Revenue Growth Y/Y in Constant Currency 10% 7% 11% 7% Avg1 Avg2 9% 6% 6% 5% 3% 0% 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Note: 1. Approximate average growth rate of year-over-year, recurring organic co

  73. Slide 73: Beginning the Year with a Prudent Set of Assumptions

    But Beginning the Year with a Prudent Set of Assumptions Instrument Replacement Cycle has Begun1 vs. 2025 Starting Guide2 INSTRUMENT GROWTH 2025 INSTRUMENT GROWTH GUIDE 8% 7-8% 7-8% Pre-COVID Avg. CAGR 5%3 4.25% 1.25% Typical Prudence Idiosyncratic 2025 Instrument 4Q24 Instrument Typical Instrument

  74. Slide 74: Result: Excellent Growth Set-Up Ahead

    Result: Excellent Growth Set-Up Ahead HSD+ HSD +100 bps China +100-150 bps Incremental LSD ex- 6% Stimulus Waters India Generics +70-100 bps1 Near-to-Mid-Term GLP-1 Testing +30 bps2 Growth Drivers Biologics +40 bps3 PFAS +30 bps4 Historic Idiosyncratic Pricing Headwinds Growth Replacement During Gro

  75. Slide 75: Robust Shareholder Value Creation Model

    Robust Shareholder Value Creation Model 1 2 3 Delivering Top Unwavering Capital Deployment Into Tier Growth in LST Operational Discipline Focused Growth Areas Supported by consistent Leading P&L management Financially disciplined M&A, execution, category-defining together with margin expansion using

  76. Slide 76: Enacted Unwavering Operational Discipline

    Enacted Unwavering Operational Discipline Volume Headwinds 2023-24 Challenging FX Î Market Headwinds Environment 1 2 3 Productivity Pricing Cost Inflationary Alignment Pressures ©2025 Waters Corporation 75

  77. Slide 77: Resulting in Strong Margin Outcomes

    Resulting in Strong Margin Outcomes +280bps Gross Margin Adj. Operating Margin (FY-24 vs FY-22) (FY-24 vs FY-22) 59.4% Gross Margin 58.0% WAT 1.4 0.8 (140bps) +140 bps Peer 1 -0.4 -0.7 Peer 2 -1.0 -3.6 2022 CC Expansion* Fx 2024 Peer 3 -1.0 -4.6 +240bps Peer 4 -5.2 -1.2 Adj. Operating 31.0% 30.2% Pe

  78. Slide 78: Industry-Leading Profitability but Far from Peak Margins

    Industry-Leading Profitability but Far from “Peak Margins” Strong Financial Long-Term Opportunity for Profile Future Annual Margin Expansion due to downstream presence high-volume, regulated, recurring +100 bps 59.4% +25 Gross Margin (FY-24) bps +50 bps when -60 Revenue +5% +25 12 Programs bps 31.0%

  79. Slide 79: Introducing Broad Productivity Framework

    Introducing Broad Productivity Framework Freight Lane Optimization Direct Procurement Savings Global Capability Center in India In-Direct Procurement Savings Global Footprint, Network & Facility Rationalization Center For Process Excellence SAP S4/HANA Process Lean in Manufacturing Upgrade & Harmoni

  80. Slide 80: Productivity Initiatives Give 300bps of Adj. OPM Expansion

    Productivity Initiatives Give 300bps of Adj. OPM Expansion Category Program Expansion 23 24 25 26 27 28 29 30 Direct Procurement Savings Net of Inflation 40 bps Procurement In-Direct Procurement Savings Net of Inflation 30 bps Freight Lane Optimization Net of Inflation 15 bps Network Global Capabili

  81. Slide 81: Excellent Margin Expansion Path Ahead

    Excellent Margin Expansion Path Ahead +300bps 35.0% +150bps +/- Fx Road to 35% +300bps (350bps) Adjusted 31.0% Operating Margin 2024* Vol. Leverage Mix & Pricing Productivity Reinvestment 2030 Note: *Adjusted operating margin is a non-GAAP measure. See Appendix for the definition of adjusted operati

  82. Slide 82: Robust Shareholder Value Creation Model

    Robust Shareholder Value Creation Model 1 2 3 Delivering Top Unwavering Capital Deployment Into Tier Growth in LST Operational Discipline Focused Growth Areas Supported by consistent Leading P&L management Financially disciplined M&A, execution, category-defining together with margin expansion using

  83. Slide 83: Wyatt M&A Hitting Its Deal Guide

    Wyatt M&A Hitting Its Deal Guide M&A Execution: Synergy Acceleration Offset Market Weakness PROGRESS GOAL / KPI Geographic Initiated direct sales & Segment Lead-sharing ahead of Expansion expectations Became EPS accretive starting 4th Qtr PROGRESS Industry-Leading YR 5 Base Synergies 9% GOAL / KPI W

  84. Slide 84: Unlocking Additional Vector of EPS Accretion with M&A

    Unlocking Additional Vector of EPS Accretion w/ M&A Goal is to rapidly accrete EPS growth beyond that of share-buybacks and attain high ROIC FCF Clear Value Complementary Generation Creation Strong Free Cash Flow Focused on growth Scope of current portfolio Conversion can allow for opportunities wit

  85. Slide 85: Summary: Putting it all Together

    Summary: 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:

  86. Slide 86: Waters 2025 Analyst & Investor Day Q&A Session

    Waters 2025 Analyst & Investor Day Q&A Session

  87. Slide 87: Slide 87

Waters — Investor Day (March 2025) on 6ix