Bruker Corporation · NASDAQ:BRKR

Bruker — 36th Annual J.P. Morgan Healthcare Conference (January 2018)

25 slides from Bruker's conference presentation, Jan 8, 2018

  1. Slide 1: Bruker Corporation (NASDAQ: BRKR)

    Bruker Corporation (NASDAQ: BRKR) Bruker drives profitable growth by enabling scientific discoveries and delivering high-performance analytical, life science and diagnostic solutions. Innovation with Integrity © Bruker Corporation

  2. Slide 2: Safe Harbor Statement

    Bruker Corporation Safe Harbor Statement Any statements contained in this presentation that do not describe historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectati

  3. Slide 3: Bruker Overview

    Bruker Overview Differentiated Leader in Attractive Analytical, Life Science and Diagnostic Tools Markets BIOSPIN NANO Group Group • Founded in 1960, Bruker brand NMR/EPR for Life-Science & Atomic Force Microscopy stands for innovation. Fluorescence Microscopy for Cell Pharma Research Biology & Neur

  4. Slide 4: Serving Attractive, Diverse End Markets

    Serving Attractive, Diverse End Markets… …with a Global Footprint  Life Science Research in Academia,  Applied Markets Medical Schools and Government  Industrial & Next-Gen Semiconductor Metrology  Pharma/Biopharma  Superconductors for Science & Medicine  Diagnostic Labs & Hospitals Bruker rev

  5. Slide 5: Market Leading Positions in Scientific Instruments

    Market Leading Positions in Scientific Instruments BRUKER HOLDS #1 OR #2 MARKET POSITION FOR ~70% OF OUR PRODUCT PORTFOLIO NMR & EPR Preclinical Imaging: MRI, MALDI BioTyper for Mass Spec Imaging, Atomic Force Spectroscopy MPI, PET/SPECT, microCT Microbiology Microscopy (AFM) MALDI-TOF & MRMS X-Ray

  6. Slide 6: Bruker Key Objectives

    Bruker Key Objectives 1. Accelerate revenue growth:  Recent end market improvements in ACAD/GOV, Europe/US, global Industrial, Semi & Applied  Accelerate towards Life Science Tools (LST) market growth in 2018; accelerate organic growth further in 2019 and beyond 2. Sustain multi-year operating mar

  7. Slide 7: Bruker Core Strategies

    Bruker Core Strategies Portfolio initiatives and cost optimization drive profitable growth Bruker creates shareholder value by: Profitable  Being well-positioned in attractive life Growth science tools & diagnostic markets  Transforming our portfolio with a focus on six key high-growth, high-margi

  8. Slide 8: Portfolio Transformation

    Portfolio Transformation Portfolio Fundamentally reshaping the portfolio for faster growth & continued multi-year margin expansion Six Key High-Growth & High-Margin Initiatives: 2017 estimates: • Proteomics & Phenomics About 25% of Bruker’s revenue • Biopharma & Applied Growing above • Microbiology

  9. Slide 9: Proteomics & Phenomics

    Portfolio Transformation Portfolio Proteomics & Phenomics Structural Biology Proteomics & Phenomics Phenomics by NMR by GHz-Class NMR by Mass Spec • Structural biology: NMR • timsTOFTM Pro trapped ion • Phenomics clinical research reveals dynamics and function mobility QTOF with PASEF is and diagnos

  10. Slide 10: Biopharma & Applied Markets

    Portfolio Transformation Portfolio Biopharma & Applied Markets Bruker Biopharma Solutions Bruker Applied Markets Solutions • Fragment-based screening by NMR • NMR, MS and FTIR solutions for food • Reaction monitoring by NMR quality, authenticity and safety testing • rapifleX MALDI PharmaPulse: label

  11. Slide 11: Microbiology & Diagnostics

    Portfolio Transformation Portfolio Microbiology & Diagnostics Expanding consumables portfolio • Disposable MBT Biotargets Clinical Microbiology & Pathology • MBT Star®-Carba CE-IVD assay for antibiotic • MALDI Biotyper identifies bacteria, yeasts and resistance testing on MALDI Biotyper fungi accura

  12. Slide 12: Neuroscience & Cell Microscopy

    Portfolio Transformation Portfolio Neuroscience & Cell Microscopy Mouse spermatocyte courtesy of Jackson Labs Fluorescence Microscopy • Simultaneous, all-optical stimulation and imaging platforms for Neuroscience research and Optogenetics NEW: • Next-gen Multiphoton & Super-Resolution Luxendo light

  13. Slide 13: Next-Gen Nanotechnology Tools

    Portfolio Transformation Portfolio Next-Gen Nanotechnology Tools Next-Gen Nanotechnology & Semiconductor Metrology • Logic and memory require next-gen nano- metrology tools to ensure yield and quality • Bruker next-gen atomic force microscopy (AFM) and X-ray metrology tools are key for advanced node

  14. Slide 14: Fast Growing After-Market Business

    Fast Growing After-Market Business Portfolio Focus on Services, Software and Consumables • Bruker Services, Software and Consumable sales are growing above LST market average • Gross margin below Bruker average for services, above Bruker average for consumables and software • Operating margin well a

  15. Slide 15: Sustained Margin Expansion

    Sustained Margin Expansion Operational Excellence Initiatives & Portfolio Transformation Together Drive Multi-Year Operating Margin Expansion Bruker Non-GAAP Operating Margin (%) Implied 18% 15.5%-15.8%* 16% 14.8% 14% 13.3% Multi-year key objective: 12% 10.2% 10% Expand operating margin 75-100 bps p

  16. Slide 16: Operational Excellence & Cost Optimization

    From Transformation and Rightsizing (2013-2016) Cost to Operational & Commercial Excellence (2017-2020) 2013 2014 2015 2016 2017 2018 2019 2020 Outsourcing Bruker BioSpin Rightsizing Operational Excellence & Cost Optimization Outsourcing • Product R&D Excellence Bruker NANO Rightsizing & Footprint C

  17. Slide 17: Year-To-Date FY 2017 Financials

    Bruker Year-To-Date FY 2017 financials(1) Improved revenue growth and further operating margin expansion; 2016 tax rate affects EPS comparisons Revenues Non-GAAP Non-GAAP Operating Margin EPS(2) $1,235 $1,141 Mil 13.4% Mil 12.8% $0.73 $0.70 +$94M (+8.3%) +60 bps -4% (1)For the nine months ended Sept

  18. Slide 18: US Tax Reform

    US Tax Reform Neutral to Positive for Bruker Impact on US Tax Reform Bruker Comment Lower US Corporate Tax Rate: Neutral Near-term, Bruker’s earnings and cash flow 21% from 35% mostly non-US Territorial tax system, full foreign Positive No US tax on non-US earnings dividend exemption “Toll tax”: tax

  19. Slide 19: Bruker Key Objectives

    Bruker Key Objectives 1. Accelerate revenue growth:  Recent end market improvements in ACAD/GOV, Europe/US, global Industrial, Semi & Applied  Accelerate towards Life Science Tools (LST) market growth in 2018; accelerate organic growth further in 2019 and beyond 2. Sustain multi-year operating mar

  20. Slide 20: www.bruker.com

    www.bruker.com © Bruker Corporation 20

  21. Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures

    Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (unaudited) (in millions, except per share amounts) Nine Months Ended September 30, 2017 2016 Reconciliation of Non-GAAP Operating Income, Non-GAAP Profit Before Tax, Non-GAAP Net Income, and Non-GAAP EPS GAAP Operating Income

  22. Slide 22: Reconciliation of GAAP to Non-GAAP Financial Measures

    Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (Unaudited) (in millions, except per share amounts) Nine Months Ended September 30, 2017 2016 Reconciliation of GAAP and Non-GAAP Gross Profit GAAP Gross Profit $ 557.8 $ 522.1 Non-GAAP Adjustments: Restructuring Costs 1.6 6.4

  23. Slide 23: Reconciliation of GAAP to Non-GAAP Financial Measures

    Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (Unaudited) (in millions, except per share amounts) Nine Months Ended September 30, 2017 2016 Reconciliation of GAAP and Non-GAAP Interest & Other Income (Expense), net GAAP Interest & Other Income (Expense), net $ (11.8) $ (11

  24. Slide 24: Reconciliation of GAAP to Non-GAAP Financial Measures

    Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (Unaudited) (in millions, except per share amounts) Twelve Months Ended December 31, 2016 2015 2014 Reconciliation of Non-GAAP Operating Income, Non-GAAP Profit Before Tax, Non-GAAP Net Income, and Non-GAAP EPS GAAP Operating I

  25. Slide 25: Reconciliation of Non-GAAP Return on Invested Capital

    Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (in millions, except per share amounts) 2016 2015 Reconciliation of Non-GAAP Return on Invested Capital (ROIC) Non-GAAP Operating Income (from above) $ 237.9 $ 215.2 Less: Non-GAAP Income Tax Provision (from above) (35.9) (43.4

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