<PAGE>
-3-
Slide 1
[Background image - map of the world]
WATERS
October 27, 2000
[Photograph of Waters Corporation headquarters in Milford, MA]
Slide 2
[Background image - map of the world]
CAUTIONARY STATEMENT
Certain statements contained in this presentation, including references to the
Registrant's strategy and operating and financial profile, are forward-looking.
These statements are subject to various risks and uncertainties, many of which
are outside the control of the Registrant, including (i) changes in relevant
portions of the analytical instrument marketplace as a result of economic or
regulatory influences, (ii) general changes in the economy or marketplace
including currency fluctuations, in particular with regard to the Eurocurrency,
(iii) changes in the competitive marketplace, including new products or pricing
changes by the Registrant's competitors, (iv) the ability of the Registrant to
generate increased sales and profitability from new product introductions, as
well as additional risk factors set forth in the Registrant's Form 10-K for its
fiscal year ended December 31, 1999. Actual results could differ materially from
the plans, intentions and expectations disclosed in the forward-looking
statements the Registrant may make, whether because of these factors or for
other reasons. The Registrant does not assume any obligations to update any
forward-looking statement.
<PAGE>
-4-
Slide 3
[Background image - map of the world]
OVERVIEW
- Worldwide leader in three market segments, representing $4.0 billion
of the $18 billion Analytical Instrument Industry
- Experiencing strong growth from new product pipeline and accelerating
market performance
- Rapidly growing market need for drug discovery and life science tools
- Strong financial performance
Slide 4
[Background image - map of the world]
[Picture of HPLC system]
WATERS STRATEGY
Focus on high value added laboratory analytical technologies
- Current Portfolio
- HPLC
- Mass Spectrometry
- Thermal Analysis
<PAGE>
-5-
Slide 5
[Background image - map of the world]
CURRENT SERVED MARKET
[Pie chart:
Life Science 70%
All Other 30%]
- Life Science (Drug Discovery, Drug Development & Quality Control)
- Genomics
- Proteomics
- High-Throughput Drug Discovery
- University & Government Component
Slide 6
[Background image - map of the world]
RECENT FINANCIAL PERFORMANCE
[Sales graph:
Sales ($ in Millions)
Compound Growth: 21%
1995 - $333
1996 - $391 (+17%)
1997 - $465 (+19%)
1998 - $619 (+33%)
1999 - $704 (+14%)]
[Sales graph:
Sales ($ in millions)
1999, 1st 9 months - $504
2000, 1st 9 months - $570 (+13%)]
[EPS graph:
EPS
Compound Growth: 38%
1995 - $0.25
1996 - $0.35 (+37%)
1997 - $0.48 (+39%)
1998 - $0.70 (+43%)
1999 - $0.92 (+32%)]
[EPS graph:
EPS
1999, 1st 9 months - $0.60
2000, 1st 9 months - $0.78 (+30%)]
<PAGE>
-6-
Slide 7
[Background image - map of the world]
1999 BUSINESS PORTFOLIO - APPROXIMATE MIX
[Pie chart:
HPLC 65%
Mass Spectrometry 25%
Thermal Analysis 10%]
Slide 8
[Background image - map of the world]
COMPETITIVE POSITION - 1999 TOTAL MARKET $4.0B (a)
[Pie chart:
HPLC Market Size - $2.5 Billion
Growth Rate - 8%
Waters 19%
Agilent 12%
Hitachi 5%
Dionex 5%
Shimadzu 6%
All Others 53%]
[Pie chart:
Mass Spectrometry Market Size - $1.0 Billion (b)
Growth Rate - 15%
Waters/Micromass 23%
Finnigan/Thermoquest 23%
PE/Sciex 20%
Agilent 9%
Shimadzu 5%
All Others 20%]
(a) Based on Strategic Directions International with certain adjustments
(b) w/o GC/MS
<PAGE>
-7-
Slide 9
[Background image - map of the world]
GROWTH STRATEGY
DRIVEN BY...
- Biopharmaceutical Investments
- Drug Discovery
- Genomics
- Proteomics
- New Products
- Regulatory Standards Worldwide (FDA, EPA, etc.)
- Emerging International Markets
- Pressure by Customers to Increase Productivity
- Acquisitions
Slide 10
[Background image - map of the world]
GROWTH STRATEGY
COMPETITIVE ADVANTAGES...
- Market Leading Position in HPLC, MS and TA
- Technology Leader
- Strong New Product Pipeline
- Worldwide Sales and Support
- Global Brands and Reputation
<PAGE>
-8-
Slide 11
[Background image - map of the world]
GROWTH STRATEGY
NEW PRODUCT INTRODUCTIONS...
- Alliance-Registered Trademark- HT System 1999
- CapLC-TM- System 1999
- Alliance-Registered Trademark- GPC2000 System 1999
- FractionLynx-TM- System 1999
- XTerra-TM- Columns 1999
HPLC
- ZMD LC/MS Platform 1999
- Millennium32-Registered Trademark-Software 2000
- New Detectors 2000
- New Separations Chemistries 2000
- Quattro Ultima-TM- 1999
- LCT-TM- with MUX - technology-TM- 1999
MS - Proteome-TM- Works System 1999
- Q-Tof-TM- 2 1999
- Quadrupole, Q-Tof & MALDI-Tof Enhancements 2000
Slide 12
[Background image - map of the world]
FUTURE GROWTH OPPORTUNITIES
- Proteomics
- Capillary Scale HPLC
- SNP Discovery and Genotyping
<PAGE>
-9-
Slide 13
[Background image - map of the world]
FINANCIAL REVIEW
[Picture of currencies around the world]
Slide 14
[Background image - map of the world]
SALES GROWTH IS STRONG ($ IN MILLIONS)
[Sales graph:
Sales
Compound Growth: 21%
Year ended 1995 - $333
Year ended 1996 - $391 (+17%)
Year ended 1997 - $465 (+19%)
Year ended 1998 - $619 (+33%)
Year ended 1999 - $704 (+14%)
1999, 1st 9 months - $504
2000, 1st 9 months - $570 (+13%)]
<PAGE>
-10-
Slide 15
[Background image - map of the world]
OPERATING INCOME GROWTH IS STRONGER ($ IN MILLIONS)
[Operating Income graph:
Compound Growth: 33%
Year ended 1995 - $56
Year ended 1996 - $71 (+27%)
Year ended 1997 - $93 (+30%)
Year ended 1998 - $136 (+47%)
Year ended 1999 - $177 (+29%)
1999, 1st 9 months - $118
2000, 1st 9 months - $144 (+22%)]
Slide 16
[Background image - map of the world]
OPERATING MARGINS INCREASING
[Operating Margins graph:
Operating Margin
Year ended 1995 - 16.9%
Year ended 1996 - 18.9%
Year ended 1997 - 19.9%
Year ended 1998 - 22.0%
Year ended 1999 - 25.0%
1999, 1st 9 months - 23.4%
2000, 1st 9 months - 25.2%]
<PAGE>
-11-
Slide 17
[Background image - map of the world]
EPS GROWTH IS STRONG
[EPS graph:
Compound Growth: 38%
Year ended 1995 - $0.25
Year ended 1996 - $0.35 (+37%)
Year ended 1997 - $0.48 (+38%)
Year ended 1998 - $0.70 (+43%)
Year ended 1999 - $0.92 (+32%)
1999, 1st 9 months - $0.60
2000, 1st 9 months - $0.78 (+30%)]
Slide 18
[Background image - map of the world]
OPERATING AND FINANCIAL PROFILE VERY FAVORABLE
- Sales
- Excellent new product pipeline
- Recurring revenues one-third of total
- Operating Margin
- Leveragable capacity in place
- Productivity improvement
- Research and Development
- Continued company priority
- Advantage of critical mass
- Strong Cash Flow
<PAGE>
-12-
Slide 19
[Background image - map of the world]
[Picture of flasks and test tubes]
SUMMARY
- The leading global competitor in three segments of the analytical
instrument industry representing $4.0 billion in annual revenues
- Technology leader with excellent pipeline of high value-added products
- Rapidly growing life science opportunity
- Superior financial performance
- Strong cash flow
