Slide 1: Q1 2020 Earnings Presentation
Bruker Corporation (Nasdaq: BRKR) Q1 2020 Earnings Presentation Frank Laukien, President & CEO Gerald Herman, Chief Financial Officer May 6, 2020 Miroslava Minkova, Director of Investor Relations & Corporate Development Innovation with Integrity
Slide 2: Safe Harbor
BRUKER CORPORATION Safe Harbor Any statements contained in this presentation which do not describe historical facts may constitute forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amend
Slide 3: Responding to the COVID-19 Pandemic: Four Main Areas of Focus
RESPONDING TO THE COVID-19 PANDEMIC With Four Main Areas of Focus I. Health & II. Business III. Temporary IV. Enabling Safety of our continuity and cost reductions; LS tools for employees, high service Continued COVID-19 customers and levels for investments disease, partners customers; in Project ph
Slide 4: New Real-Time PCR SARS-CoV-2 Diagnostic Assay
RESPONDING TO THE COVID-19 PANDEMIC New Real-Time PCR SARS-CoV-2 Diagnostic Assay Market Ramp Starting in Europe in Q2 2020 • Bruker-Hain products for SARS-CoV-2 virus detection(1): ✓ Automated sample prep systems ✓ Nucleic acid extraction kits ✓ New rt-PCR assay to detect SARS-CoV-2 RNA genes • Dou
Slide 5: Strong Q1-20 Microbiology Growth in China and Elsewhere
RESPONDING TO THE COVID-19 PANDEMIC Strong Q1-20 Microbiology Growth in China and Elsewhere YoY MBT Revenue Gowth Q1-20 During COVID-19 pandemic, ruling out or identifying 40 bacterial respiratory or other non-viral infections % Growth 30 complements viral detection. 20 • More than 25 MALDI Biotyper
Slide 6: Partnership with Dr. Catherine Wong to Support COVID-19 Research
RESPONDING TO THE COVID-19 PANDEMIC Partnership with Dr. Catherine Wong, Peking & Tsinghua Universities to Support COVID-19 Research • Using timsTOF ProTM dia-PASEF to identify and quantify changes in proteins and protein pathways as a result of COVID-19 infection “In my lab, dia-PASEF has made a su
Slide 7: Partnership with the Australian National Phenome Center
RESPONDING TO THE COVID-19 PANDEMIC Partnership with the Australian National Phenome Center to Support COVID-19 Research by NMR and Mass Spec • Launch of a major research and prognostics project to understand and predict COVID-19 severity in patient subpopulations • Study complex interactions of age
Slide 8: Business Update
Q1 2020 Business Update 8
Slide 9: Financial Results Negatively Affected by COVID-19 Disruption
Q1 2020 Financial Results Negatively Affected by COVID-19 Disruption Q1 2020 Performance Year-over-Year Q1 Financials Revenues [$M] -8.1% ▪ Revenues decreased -$37M, or -8.1% −Organic decline of -7.9% 461.4 424.0 −Acquisitions add +0.9% −Negative FX translation of -1.1% −Lower revenues in Europe and
Slide 10: Group Overview: Q1 2020 Revenue Performance Year-over-Year
GROUP OVERVIEW: Q1 2020 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN down mid-single digits due to COVID-19 customer disruptions, including a significant revenue drop in China ▪ NMR system revenue lower, as a number of deliveries were delayed on customer disruptions ▪ Preclin
Slide 11: Group Overview: Q1 2020 Revenue Performance Year-over-Year
GROUP OVERVIEW: Q1 2020 Revenue Performance Year-over-Year(1) Bruker NANO Group ▪ NANO down mid-teens due to worldwide COVID-19 disruptions and weakened industrial demand ▪ X-ray, Nano-surface and Semi Metrology tools revenue lower; semi metrology market demand with signs of improvement ▪ Nano-analy
Slide 12: First 1.2 GHz NMR Successfully Installed and Accepted
UPDATE ON PROJECT ACCELERATE First 1.2 GHz NMR Successfully Installed and Accepted • World’s first Avance™ NEO 1.2 GHz NMR system accepted at the CERM of University of Florence, Italy (in April 2020) ✓ Stable, homogeneous magnet suited for high- resolution biomolecular NMR ✓ Enables novel research i
Slide 13: Consolidation of German Biospin Sites
UPDATE ON OPERATIONAL EXCELLENCE Consolidation of German Biospin Sites (status April 2020) • Major multi-year investments in ‘Project 2020’ at Biospin Group to consolidate two historically grown, inefficient major German sites • Goal for 2021: modern, lean and customer-oriented single site in Ettlin
Slide 14: Financial Update
Q1 2020 Financial Update 14
Slide 15: Non-GAAP Financial Performance: Q1 2020 Overview
NON-GAAP FINANCIAL PERFORMANCE: Q1 2020 Overview [$ m, except EPS] Q1 2020 Q1 2019 Δ COMMENTS Revenues 424.0 461.4 -8.1% ▪ Reported revenue -8.1%, organic revenue -7.9% Operating Profit 32.2 62.3 -48.3% Operating Margin (%) 7.6% 13.5% -590 bps ▪ Operating profit drops 48% ▪ Operating margin down Non
Slide 16: Q1 2020 Revenue Bridge
Q1 2020 Revenue Bridge Q1 2020 DRIVERS Q1 2020 Revenue Performance Year-over-Year ▪ Reported revenue -8.1% Organic Currency Portfolio Total – Lower revenues in Europe and North America -7.9% -1.1% +0.9% -8.1% – China revenue declined ~30% ▪ Organic revenue -7.9% Q1 2020 Revenue Bridge [$M] – BSI Gro
Slide 17: Non-GAAP Results Year-over-Year
Q1 2020 Non-GAAP Results Year-over-Year [$ m, except EPS] Q1 2020 Q1 2019 Δ COMMENTS Total Revenues 424.0 461.4 -8.1% ▪ Gross margin down -220 bps, Gross Profit 198.1 225.5 -12.2% due to lower revenues, Margin (% of revenues) 46.7% 48.9% -220 bps operational inefficiencies and SG&A -117.4 -116.8 +0.
Slide 18: Cash Flow Year-over-Year
Q1 2020 Cash Flow Year-over-Year [$ m] Q1 2020 Q1 2019 Δ COMMENTS GAAP Net Income 10.6 30.7 -20.1 ▪ Q1 2020 free cash flow of $4.5M compared to $3.6M Depreciation & amortization 19.0 19.0 0.0 in Q1-19: – Lower net income Changes in working capital* -21.3 -26.0 +4.7 – Continued capex Other +26.7 -9.5
Slide 19: FY 2020 Outlook
FY 2020 Outlook 19
Slide 20: FY 2020 Outlook: Guidance Remains Suspended
FY 2020 Outlook FY 2020 Guidance Remains Suspended ▪ On March 27, 2020, Bruker suspended its FY 2020 guidance due to the uncertain business conditions created by COVID-19. Potential Q2 2020 Scenarios ▪ Bruker anticipates that the pandemic will have a significant negative impact on its second quarter
Slide 21: Appendix
Appendix 21
Slide 22: GAAP Results Year-over-Year
Q1 2020 GAAP Results Year-over-Year [$M, except EPS] Q1 2020 Q1 2019 Δ Total Revenues 424.0 461.4 -8% Gross Profit 192.3 214.7 -10% Margin (% of sales) 45.4% 46.5% SG&A -121.2 -120.1 +1% (% of revenues) 28.6% 26.0% R&D -48.5 -46.4 +5% (% of revenues) 11.4% 10.1% Operating Income 16.4 41.9 -61% (% of
Slide 23: Reconciliation of GAAP and Non-GAAP Results Year-over-Year
Q1 2020 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] Q1 2020 Q1 2019 GAAP Operating Income 16.4 41.9 Restructuring Costs 2.3 4.0 Acquisition-Related Costs -1.1 4.9 Purchased Intangible Amortization 8.7 10.1 Other Costs 5.9 1.4 TOTAL 15.8 20.4 Non-GAAP Operating Income
Slide 24: Balance Sheet
Balance Sheet [$M] Mar 31, 2020 Dec 31, 2019 Mar 31, 2019 Total Assets 2,961.9 2,771.5 2,242.5 Working Capital* 824.0 821.0 775.7 Intangibles, Net & Other 591.0 603.5 553.8 Long-Term Assets [$M] Mar 31, 2020 Dec 31, 2019 Mar 31, 2019 Cash, Cash Equivalents & 851.7 684.9 298.8 Short-term Investments
Slide 25: BSI and BEST GAAP Performance Year-over-Year
Q1 2020 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Year-over-Year [$ m] Q1 2020 Q1 2019 Δ REVENUE Scientific Instruments (BSI) 381.5 416.8 -8% Organic Revenue Growth (%) -8.2% +5.5% Energy & Supercon Technologies (BEST) 46.2 47.8 -3% Corporate Eliminations -3.7 -3.2 Energy & Supercon Techno