EX-99.1 2 d269943dex991.htm EX-99.1

Udit Batra, Ph.D. President & CEO January 10, 2022 J.P. Morgan 40th Annual Healthcare Conference Exhibit 99.1

This presentation contains forward-looking statements regarding future results and events. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” , “project” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which speak only as of the date hereof and should not be relied upon as representing the Company’s estimates or views as of any date subsequent to the date of this presentation. We do not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law. The Company’s actual future results may differ significantly from the results discussed in the forward-looking statements within this presentation for a variety of reasons, including and without limitation, risks related to the effects of the ongoing COVID-19 pandemic on our business, financial condition, results of operations and prospects, including: portions of our global workforce being unable to work fully and/or effectively due to working remotely, illness, quarantines, government actions, facility closures or other reasons related to the pandemic, increased risks of cyber-attacks resulting from our temporary remote working model, disruptions in our manufacturing capabilities or to our supply chain, volatility and uncertainty in global capital markets limiting our ability to access capital, customers being unable to make timely payments for purchases and volatility in demand for our products; foreign exchange rate fluctuations potentially affecting translation of the Company’s future non-U.S. operating results; fluctuations in expenditures by the Company’s customers, in particular large pharmaceutical companies; environmental and logistical obstacles affecting the distribution of products and risks associated with lawsuits and other legal actions, particularly involving claims for infringement of patents and other intellectual property rights. Such factors and others are discussed more fully in the sections entitled “Forward-Looking Statements” and “Risk Factors” of the Company’s annual report on Form 10-K for the year ended December 31, 2020 as filed with the Securities and Exchange Commission on February 24, 2021, as updated by the Company’s subsequent filings with the SEC including the Company’s Quarterly Reports on Form 10-Q. This presentation contains certain non-GAAP measures, which are provided to assist in an understanding of the Company’s business and its performance. These measures should always be considered in conjunction with the appropriate GAAP measure. Reconciliations of non-GAAP amounts to the GAAP amounts are on the Company’s website at: https://ir.waters.com/, or in the Company’s Form 8-K filings with the SEC. Cautionary Statements

Key Messages Resilient and Attractive Base Transformation on Track Focused on Growth

Company Snapshot (NYSE:WAT) Note: 1. Based on trailing twelve-months (TTM) as reported, GAAP data for the period ended October 2, 2021; 2. EBITDA Margin = (Earnings before Interest, Taxes, Depreciation, and Amortization) divided by total revenues (of $2.7BN), calculated using as reported, GAAP data Source: Waters Corporation information and data Liquid chromatography, mass spectrometry, and thermal analysis innovator Industry-leading service and informatics Partner with customers around the world to ensure the: Efficacy, safety & quality of medicines and vaccines Purity of our food and water Durability of products we use everyday 35% EBITDA 2 (TTM)1 $2.7BN Revenue (TTM)1 35+ Countries with Operations 7,400+ Employees Worldwide

Diversified Portfolio, Customer, and Geographic Base Note: 1. All data is based on total trailing twelve-month (TTM) as reported, GAAP revenues for the period ended October 2, 2021 (100% = $2.7B); potential for geographic business variation due to Covid-19. Source: Waters Corporation information and data High exposure to sustainable, growing markets (MSD+) Pharma Industrial & Applied 60% 30% Academic & Government 10% TTM Revenues Instruments Service Large installed base with >50% recurring revenues 47% Chemistry 35% 18% TTM Revenues Diversified geographic base, with exposure to higher-growth regions US Other APAC (ex-China) 28% 5% 20% China 18% Europe 29% TTM Revenues Customer Geography TTM Revenues of $2.7BN1

Operate in Markets with Sustainable Growth Drivers Source: Waters data and estimates PHARMA FOOD & ENVIRONMENT MSD Academic & Govt. MSD Manufacturing volume Biologics and novel modalities Outsourcing CLINICAL MATERIALS HSD MSD - HSD Early disease detection Volume of testing Safe food, water, and environmental health Population growth Battery testing Sustainable polymers Government funding Pharma Industrial & Applied LSD - MSD

Customized Consumables Simplified sophisticated Instruments Informatics designed for regulatory submission 1 2 3 Strong technical expertise Top-ranked Field Services2 150K+ installed base Leader in LC, MS, Thermal Analysis Innovator in small molecule and biologic separations Leader in analytical chemistry solutions Embedded within Top 50 Pharma Companies #1 Chromatography Data System Simple Compliant Efficient For High Volume Applications Well-Developed Business Model Note: 1. Total R&D spending as a percentage of non-service total company sales revenue – YTD as of 3Q21; 2. Multiple ‘Achievement in Customer Excellence’ Awards (Confirmit) for proven excellence and innovation in Customer Experience programs. Source: Waters data and estimates. All data are estimates based on internal projections and represent forward-looking statements and are subject to inherent uncertainties that could cause actual results to differ and such differences could be material. Please refer to the Company’s Cautionary Statements on Slide 2. Deep understanding of unmet needs of customers R&D = ~10% of revenues1 4 Services to maximize productivity and utilization

Commitment to Leave the World a Better Place Note: 1. Against 2016 baseline; GHG = greenhouse gas emissions includes total Scope 1 & 2 (direct); figures as of 2020; 2. Refers to Historically Black Colleges and Universities; 3. By gender and ethnicity Source: Waters data and analysis. Diverse slate and HBCU2 programs STEM programs with underserved communities Employee Circles promoting compassion and conversation Grow with culture of diversity and inclusion SOCIAL Enhance long-term shareholder value with effective oversight 44% of executive leadership are women; 33% are ethnically diverse Board of Directors is 40% diverse3 Separation of Chairman and CEO positions in 2020 GOVERNANCE ~10% GHG reduction from 20161 450,000kg annual CO2 eliminated from our packaging >50% of direct procurement spend with suppliers with sustainability goals or environmental KPIs Reduce our environmental footprint ENVIRONMENTAL

Key Messages Resilient and Attractive Base Transformation on Track Focused on Growth

Regain Commercial Momentum with Specific Initiatives Regained Momentum and Revitalized Organization Strengthen Performance and Leadership Enhance Portfolio for Growth 1 2 3

Regained Footing Across the Board Note: 2021 EST data are estimates based on year-to-date performance through the end of 3Q21 and internal projections made at that time for the remainder of the year. 2022 and beyond data are estimates based on internal projections made at the end of 3Q21. All data represents forward-looking statements and are subject to inherent uncertainties that could cause actual results to differ and such differences could be material. Please refer to the Company’s Cautionary Statements on Slide 2. Source: Waters data, analysis, and estimates 1 $30M+ Strong, ongoing replacement program 2021 EST. +200bps Q3 YTD vs. 2019 +1000 bps further potential in L-T 40%+ Q3 YTD vs. 2019 Increased CXO exposure as only two-thirds potential reached >27% of consumables (Q3 YTD) Continued progress toward 55% at steady-state Full pipeline of launches across instruments, consumables, and informatics; robust launch process Initiatives Instrument Replacement Revenue Contribution Contract Organizations Revenue growth eCommerce Adoption % of chemistry sales Launch Excellence New product contribution Service Attachment Plan coverage as % of i-base 1 2 3 4 5 2022 and Beyond $45M+ Arc HPLC + Premier +~100bps average growth 2022 – 24

Industry-Leading Financial Profile Note: 1. Chart based on calculations comparing Waters’ average 2-yr CAGR organic growth rates in constant currency for Q1-Q3 2019 - 21 with that of peers, based on their publicly reported total performance or analytical instrument segment performance (depending on which is the most relevant comparison to Waters business), excluding COVID-19 impacts; 2. Chart based on calculations comparing Waters’ 3-year average EBITDA margins for fiscal years 2017, 18 and 19 with that of peers. EBITDA = Earnings before Interest, Taxes, Depreciation, and Amortization, calculated using as reported, GAAP data Source: FactSet; Company public releases; Waters data, analysis, and estimates ORGANIC GROWTH1 AVG 2-YR STACKED CAGR (2019 - 21 Q3 YTD) EBITDA MARGIN2 3-YR AVERAGE (2017 - 19) 7% 5% 7% 3% 35% 23% 26% 18% Peer Average & Range 1 Peer Average & Range

New Leadership Capabilities in Place 2 Udit Batra CEO Jon Pratt Waters Division Jianqing Bennett TA Division Dan Welch Operations Amol Chaubal CFO & IT Dan Rush Strategy & Transformation Kristen Garvey Communications Belinda Hyde HR Keeley Aleman Legal Commercial execution Integration Waters Knowledge Commercial execution Diagnostics expertise Integration Manufacturing Quality Supply Chain Customer Experience Transformation M&A Strategy & Innovation Transformation Integration Communications Strategy Stakeholder Engagement Integration Talent Management HR Operations Transformation M&A and Comm. Agreements Intellectual Property Governance M&A AND TRANSFORMATION EXECUTION EXCELLENCE TECHNICAL EXPERTISE

Key Messages Resilient and Attractive Base Transformation on Track Focused on Growth

Informatics for compliance & quality Customized Consumables Services to maximize productivity and utilization Core Pharma QA/QC Late-Stage Drug Development Food and Environmental Safety Clinical Diagnostics Materials Testing Faster-Growing Adjacencies Bio-separations Bioprocess Characterization LC-MS in Diagnostics Battery Testing Sustainable Polymers Taking Capabilities into Faster-Growing Adjacencies Customized Consumables Simplified sophisticated Instruments Informatics designed for regulatory submission 1 2 3 Services to maximize productivity and utilization 4

Core Supported by Instrument Innovation Note: 1. Carryover is sample carryover from a previous experiment / machine run; 2. Compared to competing systems; 3. FWHM = Full Width Half Maximum (FWHM) resolution quality Source: Waters Corporation information and analysis 5x lower carryover1 vs legacy HPLC >2x higher injection precision2 Back pressure tolerance up to 9,500 psi, ~2x previous HPLC High performance without revalidating existing methods Biologics and Novel Modality applications Outstanding clarity and accuracy at speed Value Proposition Product Benefits Launched in 2020 Launched in 2021 Launched in 2021 100x better detection sensitivity 50% reduction in peak tailing >5x improvement in repeatability <500ppb mass accuracy; better than TOF & Orbitrap Mass Resolution >200k FWHM3; first Waters instrument of its kind Speed up to 10Hz without comprising accuracy

Custom-Designed Consumables for Novel Modalities Note: Chart shows the retention time of the analyte Source: Waters Corporation information and analysis Increased sensitivity for metal-binding analytes like mRNA and complex proteins Better peak shapes and capacity Greater reproducibility for QA/QC Fastest column launch in Waters history EXAMPLE APPLICATION: Oligonucleotides 12X (est.) improvement in Sensitivity COLUMNS Launched in 2020

Solving Critical Problems in High-Growth Adjacencies Source: IMS/IQVIA Clinical Market Data; M&M Report; Kalorama; BBC Market Report; Waters Corporation information and analysis Bio-separations Separating and purifying newer modalities Bioprocess Characterization Decoupling the process from the product for manufacturing of large molecules LC-MS in Diagnostics An unbiased, multiplexed, multiomic, and ultra-high sensitivity diagnostic solution Market Size Market Growth ~$1.2BN HSD - DD ~$0.5BN DD+ ~$1.2BN HSD - DD

Note: 1. PQA = product quality attributes linked to the drug substance Source: Waters Corporation information and analysis BioAccord speeds up time for initial clone cell selection from 6 weeks to 1 week Higher level of process control and better analytics in bioprocessing applications POTENTIAL OPPORTUNITY PROOF OF CONCEPT UNMET NEEDS 1 2 3 FROM: TO: Data driven selection of clones / Optimization of culture parameters Better clones and culture conditions BioAccord monitors PQAs directly1 and covers 4-7x times more types of analytical data than competing systems Manufacturing Benchtop Pilot Plant Bioprocess Characterization: Clone Cell Selection

Putting It All Together Note: Growth rate estimates are for organic growth in constant currency; margin expansion estimates are at constant currency. All data are estimates based on internal projections and represent forward-looking statements and are subject to inherent uncertainties that could cause actual results to differ and such differences could be material. Please refer to the Company’s Cautionary Statements on Slide 2. Source: Waters Corporation estimates and projections 5-7% MARKET+ BEYOND MARKET+ +20-30 bps NEAR-TERM (2022-23) MID-TERM (2024+) MSD end markets Market+ execution MSD+ end markets Market+ execution Adjacencies adding to growth ANNUAL EXPANSION ANNUAL EXPANSION Volume leverage Productivity gains Investment in high-growth adjacencies Volume leverage Productivity gains Business mix Additional investments GROWTH MARGINS

Key Messages Resilient and Attractive Base Transformation on Track Focused on Growth