Summary of Waters Corporation Conference Call Company Overview - **Company**: Waters Corporation (NYSE: WAT) - **Event**: Jefferies 2023 Global Healthcare Conference - **Date**: June 8, 2023 - **Participants**: Udit Batra (CEO), Brandon Couillard (Jefferies) Key Points Industry and Market Demand - Instrument growth rate for Waters is expected to be around **5%** over the long term, driven by prescription volume and Phase III starts in the pharmaceutical sector [3][4][11] - The company emphasizes the importance of looking at long-term trends rather than short-term fluctuations, which can be misleading [3][11] - Historical fluctuations in instrument growth have been correlated with macroeconomic events, with notable declines observed during 2008-09, 2011-12, and 2019-20 [7][8][10] Factors Influencing Growth - Key drivers for growth include: 1. Increasing prescription rates and Phase III starts, particularly for novel modalities and large molecules [14] 2. Execution in instrument replacement and innovation [5][6] 3. Pricing strategies [5] - Current indicators suggest that these factors are more favorable than in the past [6][11] Regional Insights - China is projected to experience flat to low single-digit growth, with specific segments like CDMOs under pressure and pre-commercial biotech halted [49][51][52] - The academic and government sectors in China saw significant growth in Q1 but are expected to slow down in subsequent quarters [50] Recent Acquisition - Waters recently acquired Wyatt Technology, which focuses on large molecules and bioanalytical characterization [21][22] - The acquisition aims to enhance Waters' capabilities in faster-growing markets, particularly in the characterization of large molecules [22][27] Product Innovations - Waters has introduced several new products, including: - **Alliance iS**: A new platform aimed at reducing human errors in data submission by **40%** [39][42] - **Xevo TQ Absolute**: The most sensitive instrument for detecting PFAS at part per quadrillion levels [43][44] - The company is focused on expanding its portfolio in bioanalytical characterization, particularly for large molecules [32][33] Future Outlook and M&A Strategy - Waters is prioritizing organic growth and successful integration of Wyatt before pursuing additional M&A opportunities [30][31] - The company remains committed to capital allocation focused on growth, innovation, and potential future share buybacks [31][33] Use of Technology - Waters is leveraging generative AI tools to enhance internal data analysis and improve customer service through predictive analytics [55][56] Conclusion - Waters Corporation is positioned for steady long-term growth driven by strong demand in the pharmaceutical sector, successful integration of recent acquisitions, and ongoing product innovation. The company is cautious about short-term fluctuations and is focused on maintaining operational excellence and strategic growth initiatives.

Waters Corporation (NYSE:WAT) Q1 2023 Earnings Conference Call May 9, 2023 8:00 AM ET Company Participants Caspar Tudor - Head of Investor Relations Udit Batra - President and Chief Executive Officer Geof Wyatt - Chief Executive Officer, Wyatt Technology Cliff Wyatt - President, Wyatt Technology Amol Chaubal - Senior Vice President and Chief Financial Officer Conference Call Participants Luke Sergott - Barclays Vijay Kumar - Evercore ISI Dan Brennan - TD Cowen Matt Sykes - Goldman Sachs Derik De Bruin - Ban ...

Summary of Waters Corporation Conference Call Company Overview - **Company**: Waters Corporation (NYSE: WAT) - **Event**: Cowen 43rd Annual Health Care Conference - **Date**: March 6, 2023 - **Participants**: Udit Batra (President, CEO and Director), Daniel Brennan (Cowen and Company) Key Points Company Performance - Waters Corporation reported a **12% growth** in revenue, with a **3-year stack growth** of approximately **8.5% to 9%** on a constant currency basis [3][6] - The company maintained **flat margins** despite facing strong foreign exchange headwinds and ongoing investments in new technologies [3][6] Innovation and Product Development - The company emphasized its commitment to **innovation**, highlighting new products across various segments including **liquid chromatography (LC)**, **mass spectrometry (MS)**, and **software** [4][5] - The introduction of new technologies, such as **MaxPeak Premier technology** and the **BioAccord**, is expected to significantly contribute to future revenue growth [8][4] Market Segments and Growth Drivers - The company serves **resilient end markets**, particularly in **pharmaceuticals** and **industrial segments**. The pharmaceutical segment is seeing growth in **biologics**, which now represent about **40% of the pipeline** [6][7] - The **PFAS testing market** is valued between **$200 million to $250 million** and is growing at **20%** [7] - The **TA business** is also shifting towards more resilient segments like **battery testing** and **electronics testing** [7] Financial Guidance - For 2023, Waters Corporation is guiding for **5% to 6.5% growth**, which is considered a reasonable starting point given the high base from previous years [13][14] - The company expects to maintain a **steady demand profile** and does not anticipate a significant decline in instrument growth [18][19] Backlog and Order Outlook - The backlog was slightly down in Q4 but remains at an all-time high, indicating strong demand [20] - The company does not foresee a dramatic change in demand or execution, particularly in the instrument segment [19][20] Strategic Acquisitions - Waters Corporation announced the acquisition of **Wyatt Technology**, which is expected to enhance its capabilities in biologics testing [5][42] - The acquisition is seen as a strategic move to accelerate growth in adjacent markets, particularly in biologics and viral vector testing [42] Regional Insights - **India** is showing strong growth, particularly in small molecules and biologics, with expectations for continued expansion [43][44] - **China** presents uncertainties for 2023, but the company remains optimistic about recovery in the second half of the year, driven by demand in pharmaceuticals and testing [45][46] Software as a Value Proposition - The company views its software, particularly **Empower**, as a critical asset, with **80% of drugs filed with the FDA** utilizing this platform [39][40] - Waters Corporation is focused on monetizing its software position and enhancing its features to create a comprehensive bioanalytical ecosystem [41][40] Conclusion - Waters Corporation is positioned for continued growth through strong commercial execution, innovation, and strategic acquisitions. The company remains optimistic about its market outlook despite potential uncertainties in specific regions and segments.

Part I [Item 1. Business](index=3&type=section&id=Item%201.%20Business) Waters Corporation offers analytical workflow solutions, including LC, MS, and TA instruments, with **59% of 2022 net sales from pharmaceuticals** [Products and Markets](index=4&type=section&id=Item%201.%20Business%23Products%20and%20Markets) Waters and TA divisions offer LC, MS, and thermal analysis instruments, with significant service revenue contributions in 2022 - Introduced the new Xevo™ TQ Absolute system in 2022, described as the **most sensitive and compact benchtop tandem mass spectrometer in its class**[36](index=36&type=chunk) - Introduced the SELECT SERIES™ MRT in 2021, a high-resolution mass spectrometer that will serve as the basis for next-generation Time-of-Flight (Tof) instruments[34](index=34&type=chunk) - TA division introduced the Powder Rheology Accessory in 2022 to characterize powder behavior for applications like battery electrode coatings and pharmaceutical tablets[50](index=50&type=chunk) - Service revenue is a substantial part of the business, accounting for **over 35% of Waters sales** and **over 25% of TA sales** in 2022[43](index=43&type=chunk)[52](index=52&type=chunk) [Manufacturing and Human Capital](index=10&type=section&id=Item%201.%20Business%23Manufacturing%20and%20Human%20Capital) Global manufacturing includes a **$232M** Taunton facility expansion; workforce reached **approximately 8,200 employees** by year-end 2022, focusing on diversity - A new state-of-the-art facility in Taunton, MA, for precision chemistry manufacturing is nearing completion in 2023, with **approximately $232M invested**[59](index=59&type=chunk) - The company's workforce grew to **approximately 8,200 employees** by the end of 2022, up from **7,800 in 2021**[71](index=71&type=chunk) - As of year-end 2022, women occupied **34% of leadership roles** (Senior Director or above), a **12% increase from 2017**. The overall workforce is **23% racially and/or ethnically diverse**[76](index=76&type=chunk) - The company operates through two main segments: Waters (LC and MS instruments) and TA (thermal analysis, rheometry, and calorimetry instruments), which are aggregated into one reporting segment for financial purposes[15](index=15&type=chunk) - The pharmaceutical sector is the largest customer segment, accounting for **59% of net sales in 2022**, followed by industrial accounts (31%) and academic/governmental agencies (10%)[53](index=53&type=chunk) - The company has a significant global presence, with approximately **4,500 field representatives** and **83 sales offices worldwide** as of 2022[55](index=55&type=chunk) R&D Expenditures | Category | 2022 (M) | 2021 (M) | 2020 (M) | | :--- | :--- | :--- | :--- | | **R&D Expenditures** | $176M | $168M | $141M | | **R&D Employees** | ~1,233 | ~1,150 | ~1,112 | | **Total Employees** | ~8,200 | ~7,800 | ~7,400 | [Item 1A. Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks from macroeconomic factors, competition, cybersecurity, supply chain, and evolving ESG expectations [Macroeconomic and Business Risks](index=16&type=section&id=Item%201A.%20Risk%20Factors%23Macroeconomic%20and%20Business%20Risks) International sales (**70% of 2022 net sales**, **19% in China**) expose the company to currency and geopolitical risks, competition, and supply chain vulnerabilities - Approximately **70% of net sales in 2022 were outside the United States**. The strengthening U.S. dollar negatively impacted 2022 **sales growth by 5%** and EPS growth by **9%**[91](index=91&type=chunk) - China represents a significant market, generating **approximately 19% of total net sales in 2022**, exposing the company to risks from Chinese governmental policies and economic conditions[94](index=94&type=chunk) - The company faces strong competition from Agilent Technologies, Shimadzu, Bruker, Danaher, and Thermo Fisher Scientific in the analytical instrument market[79](index=79&type=chunk) - The COVID-19 pandemic has disrupted and may continue to disrupt the business, particularly supply chains and logistics, and has led to modified business practices like remote work, which could heighten security risks[99](index=99&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) [Operational and Financial Risks](index=21&type=section&id=Item%201A.%20Risk%20Factors%23Operational%20and%20Financial%20Risks) Key risks include cybersecurity, regulatory compliance, ESG, goodwill impairment (**$658M**), tax liabilities, climate change, and managing **$1.6B** debt - The company relies on its technology infrastructure and is vulnerable to cybersecurity threats like ransomware and unauthorized access, which could lead to service interruptions and loss of data or assets[131](index=131&type=chunk) - Failure to meet evolving ESG expectations from stakeholders could negatively impact reputation, brand, and customer relationships[145](index=145&type=chunk)[146](index=146&type=chunk) - As of December 31, 2022, the company had goodwill and other intangible assets of **approximately $658M**, which are subject to impairment risk from negative economic trends or business disruptions[127](index=127&type=chunk) - The company had **$1.6B in debt** as of December 31, 2022, and its ability to service this debt and fund operations depends on maintaining sufficient cash flow[155](index=155&type=chunk) [Item 1B. Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved comments from the SEC staff - None[158](index=158&type=chunk) [Item 2. Properties](index=28&type=section&id=Item%202.%20Properties) Waters Corporation operates **89 facilities** globally (**19 U.S.**, **70 international**), deemed adequate for current and near-term needs - The company operates a total of **89 facilities**, with **19 in the U.S.** and **70 internationally**, including field offices[159](index=159&type=chunk) Location and Function of Key Facilities | Location | Function | Owned/Leased | | :--- | :--- | :--- | | New Castle, DE | M, R, S, D, A | Owned | | Milford, MA | M, R, S, A | Owned | | Taunton, MA | M, R | Owned | | Solihull, England | M, A | Owned | | Wilmslow, England | M, R, S, D, A | Owned | | Wexford, Ireland | M, R, D, A | Owned | | Bangalore, India | M, S, D, A | Owned | | Etten-Leur, Netherlands | S, D, A | Owned | | Hüllhorst, Germany | M, R, S, D, A | Owned | [Item 3. Legal Proceedings](index=29&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal proceedings, but management anticipates no material financial impact - The company is subject to various legal proceedings in the ordinary course of business but does not anticipate any material impact on its financial results[164](index=164&type=chunk) [Item 4. Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[165](index=165&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=30&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Common stock trades on NYSE (WAT); no dividends paid; active share repurchase program with **$269M** remaining at year-end 2022 - The company has not paid cash dividends for the last three fiscal years and does not plan to in the foreseeable future[168](index=168&type=chunk) - In December 2022, the Board of Directors extended the share repurchase program to January 21, 2024, and increased the total authorization by **$750M** to **$4.8B**[176](index=176&type=chunk) Period (2022) Share Repurchases | Period (2022) | Total Shares Purchased (thousands) | Average Price Paid per Share | Maximum Value Remaining for Purchase (thousands) | | :--- | :--- | :--- | :--- | | Oct 2 - Oct 29 | 174 | $282.93 | $368,795 | | Oct 30 - Nov 26 | 147 | $318.78 | $321,997 | | Nov 27 - Dec 31 | 154 | $342.87 | $269,297 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, net sales grew 7% to **$2.97B**, operating income up 6% to **$873M**; company announced **$1.4B** Wyatt Technology acquisition - Announced an agreement on February 14, 2023, to acquire Wyatt Technology for **$1.4B** in cash, expected to close in Q2 2023[190](index=190&type=chunk)[225](index=225&type=chunk) Key Financial Metrics | Metric | 2022 (M) | 2021 (M) | % Change | | :--- | :--- | :--- | :--- | | Total Net Sales | $2,971.9M | $2,785.9M | 7% | | Operating Income | $873.4M | $821.7M | 6% | | Net Income | $707.8M | $692.8M | 2% | | Diluted EPS | $11.73 | $11.17 | 5% | - Foreign currency translation had a significant negative impact in 2022, **decreasing total sales growth by 5%** and operating income by **approximately $71M**[182](index=182&type=chunk)[184](index=184&type=chunk) [Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Results%20of%20Operations) 2022 sales growth led by Americas (+14%) and Asia (+5%), with Pharmaceutical sales up 5%; operating expenses increased Net Sales by Geography (2022 vs 2021) | Region | 2022 Sales (M) | 2021 Sales (M) | % Change | | :--- | :--- | :--- | :--- | | **Asia** | $1,131.7 | $1,075.8 | 5% | | China | $565.1 | $521.1 | 8% | | **Americas** | $1,055.6 | $925.2 | 14% | | United States | $886.1 | $774.0 | 14% | | **Europe** | $784.6 | $784.9 | 0% | Net Sales by Customer Class (2022 vs 2021) | Class | 2022 Sales (M) | 2021 Sales (M) | % Change | | :--- | :--- | :--- | :--- | | Pharmaceutical | $1,751.7 | $1,667.1 | 5% | | Industrial | $909.8 | $829.2 | 10% | | Academic & Gov't | $310.5 | $289.6 | 7% | Net Sales by Division (2022 vs 2021) | Division/Product | 2022 Sales (M) | 2021 Sales (M) | % Change | | :--- | :--- | :--- | :--- | | **Waters Division** | $2,626.5 | $2,473.1 | 6% | | Instrument Systems | $1,210.5 | $1,089.2 | 11% | | Chemistry Consumables | $525.4 | $507.2 | 4% | | Service | $890.6 | $876.6 | 2% | | **TA Division** | $345.5 | $312.8 | 10% | | Instrument Systems | $252.3 | $225.6 | 12% | | Service | $93.2 | $87.2 | 7% | - The effective tax rate increased to **15.5% in 2022** from **14.1% in 2021**, primarily due to a U.S. tax law change requiring capitalization and amortization of R&D expenditures, which impacted the GILTI provision[213](index=213&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Liquidity%20and%20Capital%20Resources) Net cash from operations decreased to **$612M in 2022**; **$176M** capital expenditures, **$616M of stock repurchases**; **$481M** cash, **$1.6B** debt - Net cash provided by operating activities was **$612M in 2022**, a decrease from **$747M in 2021**[216](index=216&type=chunk) - Capital expenditures were **$176M in 2022**, with ongoing investment in the Taunton, MA precision chemistry facility, which is expected to be completed in 2023[218](index=218&type=chunk) - The company repurchased **$616M of its common stock** in 2022 under its authorized program[228](index=228&type=chunk) - As of Dec 31, 2022, the company had **$1.6B in total debt** and **$481M in cash, cash equivalents, and investments**. The majority of cash (**$472M**) is held by foreign subsidiaries[226](index=226&type=chunk)[230](index=230&type=chunk) [Critical Accounting Policies and Estimates](index=43&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Critical%20Accounting%20Policies%20and%20Estimates) Critical policies include Revenue Recognition, Inventory Valuation, Goodwill and Intangible Assets impairment, and Income Taxes - Revenue Recognition: Judgement is required to allocate transaction prices between distinct performance obligations, such as product and installation services, based on relative standalone selling prices[240](index=240&type=chunk) - Goodwill and Intangible Assets: Goodwill (**$430M at year-end 2022**) is tested for impairment annually using a discounted cash flow method, which requires assumptions about revenue growth and discount rates[246](index=246&type=chunk) - Income Taxes: The company has a concessionary **5% income tax rate in Singapore** through March 2026, contingent on meeting certain operational and financial milestones. Failure to meet these could result in a reversal of previously recognized tax benefits[252](index=252&type=chunk) - Inventory Valuation: Inventory is valued at the lower of cost or net realizable value, with provisions for obsolescence based on historical and projected future demand. The inventory balance was **$456M at year-end 2022**[244](index=244&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Company manages foreign currency and interest rate risks using derivatives; hypothetical **10% adverse exchange rate change** impacts pre-tax earnings by **$6M** - The company uses interest rate cross-currency swap agreements with a notional value of **$585M** to hedge its euro and yen-denominated net asset investments[261](index=261&type=chunk) - A hypothetical **10% adverse change** (strengthening of the U.S. dollar) in year-end exchange rates would increase pre-tax earnings by **approximately $6M** from foreign currency exchange contracts[263](index=263&type=chunk) - As of December 31, 2022, **$472M** of the company's **$481M in cash, cash equivalents, and investments** were held by foreign subsidiaries[266](index=266&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=49&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Management and auditor confirm effective internal controls; unqualified opinion on financial statements and controls; full financial statements included - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2022, based on the COSO framework (2013)[270](index=270&type=chunk) - The independent auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion, stating the financial statements are presented fairly and the company maintained effective internal control over financial reporting[275](index=275&type=chunk) - The auditor identified 'Product Revenue Recognition' as a Critical Audit Matter due to the high degree of auditor effort required in performing procedures related to it[282](index=282&type=chunk)[284](index=284&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=100&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles or financial disclosure - None[527](index=527&type=chunk) [Item 9A. Controls and Procedures](index=100&type=section&id=Item%209A.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls were effective as of Dec 31, 2022, with no material changes to internal control - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[528](index=528&type=chunk) - No material changes to internal control over financial reporting were identified in the quarter ended December 31, 2022[531](index=531&type=chunk) [Item 9B. Other Information](index=100&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[532](index=532&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=100&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - None[533](index=533&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=100&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Executive officers identified; detailed director and corporate governance information incorporated by reference from 2023 Proxy Statement - The executive officers of the company include Dr. Udit Batra (President and CEO), Amol Chaubal (CFO), Jianqing Bennett (SVP, TA Instruments Division), and Jonathan M. Pratt (SVP, Waters Division)[535](index=535&type=chunk)[538](index=538&type=chunk)[539](index=539&type=chunk) [Item 11. Executive Compensation](index=102&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information, including the Compensation Committee Report, is incorporated by reference from the 2023 Proxy Statement - Information is incorporated by reference from the 2023 Proxy Statement[545](index=545&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=102&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Equity compensation plan details provided; security ownership information incorporated by reference from 2023 Proxy Statement Equity Compensation Plan Information as of December 31, 2022 (in thousands) | Plan Category | Securities to be Issued Upon Exercise (thousands) | Weighted-Average Exercise Price ($) | Securities Remaining Available for Future Issuance (thousands) | | :--- | :--- | :--- | :--- | | Approved by security holders | 976 | $238.43 | 6,929 | | Not approved by security holders | — | — | — | | **Total** | **976** | **$238.43** | **6,929** | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=102&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2023 Proxy Statement - Information is incorporated by reference from the 2023 Proxy Statement[549](index=549&type=chunk) [Item 14. Principal Accountant Fees and Services](index=103&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the 2023 Proxy Statement - Information is incorporated by reference from the 2023 Proxy Statement[550](index=550&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=104&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all documents filed with the Annual Report, including consolidated financial statements, auditor's report, and various exhibits - This section contains the list of all financial statements and exhibits filed with the Form 10-K[552](index=552&type=chunk) [Item 16. Form 10-K Summary](index=107&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has opted not to include the optional summary for Item 16 in this Annual Report - The optional summary in Item 16 has not been included in this Annual Report[557](index=557&type=chunk)

Waters™ Q4 2022 Earnings Call Presentation February 15, 2023 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 deemed forward-looking statements. Words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend," "outlook," and similar expressio ...

Financial Data and Key Metrics Changes - Revenue for Q4 2022 grew 3% as reported and 9% on a constant currency basis, with full-year revenue growth of 7% as reported and 12% in constant currency [21][24][62] - Non-GAAP adjusted earnings per share for Q4 was $3.84, up 5% year-over-year, while full-year non-GAAP adjusted EPS was $12.02, up 7% year-over-year [23][58] - Gross margin for Q4 was 59.4%, up 140 basis points year-over-year, and operating margin for Q4 was 33.7%, an increase of 110 basis points [54][55] Business Line Data and Key Metrics Changes - Instrument sales grew 16% for the full year, with mass spectrometry growing over 30% [24][51] - Recurring revenues grew high single digits, supported by e-commerce and service attachment growth initiatives [23][51] - New product launches contributed significantly, with Arc HPLC, ACQUITY Premier, and cyclic unit sales growing over 40% [22][23] Market Data and Key Metrics Changes - Industrial was the fastest-growing end market, up 14%, led by environmental testing, which grew over 20% [21][24] - Pharma saw continued robust growth, up 6%, with strength in both small and large molecule applications [21][24] - Sales in Asia grew 7%, with Japan growing 25% and India growing 15%, while China experienced a low single-digit decline due to COVID-related issues [50][52] Company Strategy and Development Direction - The acquisition of Wyatt Technology is seen as a significant step to enhance Waters' capabilities in bioprocess characterization, targeting a $1.8 billion market growing at 10% to 12% [9][31] - The company aims to integrate Wyatt's light scattering technologies with its existing portfolio to create a comprehensive bioanalytical platform [40][41] - The strategy includes augmenting organic growth with M&A to accelerate entry into high-growth adjacencies [20][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robustness of end markets and strong customer demand for products, despite macroeconomic challenges [25][62] - The company anticipates that the strong instrument sales from 2022 will drive future growth in recurring revenues [25][62] - Guidance for 2023 includes organic constant currency sales growth of 5% to 6.5%, with the Wyatt acquisition expected to add 2% to 3% to revenue growth [63][64] Other Important Information - The transaction with Wyatt Technology is valued at $1.36 billion and is expected to close in Q2 2023, subject to regulatory approval [46][48] - The company plans to temporarily suspend its share buyback program for the remainder of 2023 to focus on debt repayment following the acquisition [47][67] - The expected annualized revenue synergies from the acquisition are projected to exceed $70 million by year five [44][96] Q&A Session Summary Question: Continued instrument strength and backlog growth - Management confirmed that instrument growth finished with double-digit growth in Q4 and 16% for the year, driven by successful commercial initiatives and new product launches [74][75] Question: Integration of Wyatt's technologies into the portfolio - Wyatt's light scattering technologies will complement Waters' existing capabilities in biophysical characterization, enhancing the overall bioanalytical characterization portfolio [79][82] Question: Guidance assumptions regarding pricing and China outlook - Management expects a high single-digit growth for China in 2023, with pricing contributing approximately 200 basis points to growth [84][88] Question: Revenue synergies from the Wyatt acquisition - The expected $70 million in revenue synergies is based on geographic expansion, increased product offerings, and integration of software platforms [91][96]

Waters™ J.P. Morgan 41st Annual Healthcare Conference Udit Batra, Ph.D. President & CEO January 9, 2023 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. Words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend," "outlook," and similar e ...

Waters Corporation (NYSE:WAT) 41st Annual J.P. Morgan Healthcare Conference Call January 9, 2023 7:30 PM ET Company Participants Udit Batra - President and Chief Executive Officer Conference Call Participants Rachel Vatnsdal - JPMorgan Chase & Co. Rachel Vatnsdal Perfect. Hi, everyone. This is Rachel Vatnsdal with the Life Science Tools Diagnostics team. I'm joined by Udit Batra today, CEO of Waters. And so as a reminder, this will be a standard presentation. So we'll do a 20-minute presentation, followed b ...

Waters Corporation (NYSE:WAT) Q3 2022 Earnings Conference Call November 1, 2022 8:00 AM ET Company Participants Caspar Tudor - Head of Investor Relations Udit Batra - President and Chief Executive Officer Amol Chaubal - SVP, Chief Financial Officer Conference Call Participants Vijay Kumar - Evercore ISI Dan Brennan - Cowen and Company Matt Sykes - Goldman Sachs Luke Sergott - Barclays Rachel Vatnsdal - JPMorgan Mike Ryskin - Bank of America Merrill Lynch Operator Good morning and welcome to the Waters Corpo ...

Waters™ Q3 2022 Earnings Call Presentation November 1, 2022 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 deemed forward-looking statements. Words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend," "outlook," and similar expression ...