Mettler-Toledo International Inc at Evercore ISI HealthCONx Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Vijay Kumar - Evercore Group LLC - Analyst : <_ALACRA_META_ABSTRACT>Fantastic. So you guys have been -- it's always a fascinating company. I think your values get tagged with China macro. But when I look at the long-term execution, it's been the upper quartile, upper decile maybe of your peer group. When I look at from that lens, like 3Q was in line-ish with versus were Street model for some moving parts, maybe labs a little bit better, industrial was a surprise. When you reviewed the quarter, Shawn, was third quarter in line with how you thought it would play out? Any surprises, any phasing issues?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Fantastic. I think industrial -- on the industrial side, like what do you -- where did the surprise come from? It was a little softer in 3Q? Was it Europe? Was it Americas?

Question: Vijay Kumar - Evercore Group LLC - Analyst : So would you say industrial, mostly, it was China and ex China. It was more or less in line with that plant.

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And when I look at your Q4 assumptions, right, historically, Q4 revenues have grown up -- low doubles, I would think sequentially from third quarter levels. Your current guidance, I think you're assuming mid-singles perhaps sequential step up. Maybe talk about some of the assumptions here on why the current Q4 sequential step-up is perhaps below historical trends?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And on the year-end budget flush, you did bring up the elections. Have you seen any change in customer behavior post elections? Are we seeing customers being more receptive to sort of spending post elections?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And when we -- historically, when you've seen a year-end budget flush, when does it happen, Shawn? Is that around this time or perhaps late December? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And then sticking on to macro. What is Mettler's exposure to NIH.

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And on the tariff part of the equation, what is your imports from China? Do you import products from Mexico, Canada?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And do you -- what about imports from Europe, this chatted about broader tariffs on all imports.

Question: Vijay Kumar - Evercore Group LLC - Analyst : Understood. And sorry, on China, if it does go to 50%, 60%, have you quantified the impact on what it could mean?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And maybe one last macro question, a lot of changes here at the various organizations, right, FDA, CMS, HMP. Does that have any bearing for Mettler or to Mettler's customers? Have you heard any commentary from your early feedback from customers?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And then sticking on to sort of the macro industrial China team. You did call out China was perhaps a little bit more modest in third quarter, mostly due to industrial. You did say a majority of China revenues is industrial rate. Like maybe can you give us a little bit more color on within China, what is life sciences, what is government academia, with is secular? And what is cyclical in China?

Question: Vijay Kumar - Evercore Group LLC - Analyst : And that's helpful color on who your customers are in China. When you look at how the year has progressed so far, I think stimulus comes up. We've been waiting for stimulus. How meaningful could stimulus be? Because I think our understanding is it's focused on the macro economy, and you guys do touch some of the industrial pieces. Could this be perhaps more meaningful to Mettler than the average life science tools company.

Question: Vijay Kumar - Evercore Group LLC - Analyst : And some of your peers, I think on recent calls, they've noted that they've started receiving stimulus related orders. From your perspective, -- is this a first half sort of event on China stimulus? What is the ground -- team on the ground .

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And your current guidance for fiscal '25 was low singles, China growth, how does that low singles compare to historical China growth rates and when do you think China could get back to, I guess, the new normal and whatever that new normal is. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And just 1 more on the China assumptions. -- the low singles outlook for fiscal '25. Does that assume any stimulus contribution for next year.

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And since you brought up other emerging markets, I think one of your peers have spoken about how India has grown strong double digits. How big is India for you guys?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. Maybe switching gears to labs. It's the biggest segment, 55% of revenue is -- your fourth quarter guidance mid-singles growth ex your shipping comp right? But your comps do get significantly easier, right? So I'm wondering how much conservatism is being baked into that lab assumptions in the Q4. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. Got you. That's helpful, Shawn. And when you say process analytics, right, can you just -- I mean, at a high level, what are the major product categories that you sell within labs?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And maybe your fiscal '25 assumes mid-single outlook for labs, right? What could -- what are the variables which would either surprise us to the upside or downside when you look at the mid-singles outlook?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. Switching gears maybe pharma. Can you give us -- that's almost 40% of your revenue, if this is end customer. What is your mix to large versus small CRO, CDMO, et cetera?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And do you have exposure to GLP-1s. Is that a contributor?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Some of your peers have quantified the benefit, is that sizable enough for Mettler to point these. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Vijay Kumar - Evercore Group LLC - Analyst : Okay .

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And have you tried to look at pharma growth ex China? What is ex China pharma growth versus what's happening in China?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. Got you. And when you look at the other parts of end markets, food, semi battery, all of those put together, how large are they as a percentage of revenues in PFAS testing is something that you're to talk about. How big is that for Mettler, could that be a driver.

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And one on that core industrials, 25% of revenues, what is true cyclical business within the core industrials and maybe give us a breakdown of what goes in that piece?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. So it really doesn't sound like there's a whole lot of correlation with the PMI. So is that a fair statement?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Yes. Got you. Service, you did bring that up, 25% of revenues grew high singles. What is your current attach rate on services rate? And what is driving this high singles growth?

Question: Vijay Kumar - Evercore Group LLC - Analyst : So is the math here of an installed base or volumes, if you will, grow low singles with increasing attach rate service should now be mid-single plus or maybe even high single sustainable grower? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And what is the margin profile of service? Is that accretive to gross margins on the op margin?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Did you quantify?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. And sticking on with margins. I think fiscal '25 was unusual. I think gross margins are expanding, but operating margins, I think you're assuming flattish right? That's unusual for Mettler. Maybe walk us through why op margins can be better?

Question: Vijay Kumar - Evercore Group LLC - Analyst : Got you. Maybe last quick 10, 15 seconds. FX has been volatile and any change in FX assumptions.

Question: Vijay Kumar - Evercore Group LLC - Analyst : Great. With that, we're out of time. Shawn, thank you so much. DISCLAIMER Refinitiv reserves the right to make changes to documents, content, or other information on this web site without obligation to notify any person of such changes. In the conference calls upon which Event Briefs are based, companies may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks, which are more specifically identified in the companies' most recent SEC filings. Although the companies may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realized. THE INFORMATION CONTAINED IN EVENT BRIEFS REFLECTS REFINITIV'S SUBJECTIVE CONDENSED PARAPHRASE OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS. IN NO WAY DOES REFINITIV OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY EVENT BRIEF. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.