Bruker Corporation · NASDAQ:BRKR

Bruker — Q2 2018 Earnings Presentation

28 slides from Bruker's earnings presentation, Aug 2, 2018

1. Slide 1: Bruker Corporation Q2 2018 Earnings Presentation

   Bruker Corporation (NASDAQ: BRKR) Q2 2018 Earnings Presentation Frank Laukien, President & CEO Gerald Herman, Chief Financial Officer August 2, 2018 Miroslava Minkova, Director of Investor Relations & Corporate Development Innovation with Integrity

2. Slide 2: Safe Harbor & Reg. G Statement

   BRUKER CORPORATION Safe Harbor & Reg. G 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. Any forward-looking statements contained herein

3. Slide 3: Q2 2018 & H1 2018 Business Update

   Q2 2018 & H1 2018 Business Update 3

4. Slide 4: Q2 2018: Strong BSI offsets expected BEST decline; further operating margin and EPS improvement

   Q2 2018: Strong BSI offsets expected BEST decline; further operating margin and EPS improvement Q2 2018 Performance Q2 Financials Revenues [$M] +6.9%  Revenues increase +$29M, or +6.9%, y-o-y −Organic growth +2.9% y-o-y, with BSI up +7.1%, 443.7 and BEST segment down -25.6% 414.9 −Acquisitions add

5. Slide 5: H1 2018: Improved BSI organic revenue growth; ~20% year-over-year EPS improvement

   H1 2018: Improved BSI organic revenue growth; ~20% year-over-year EPS improvement H1 2018 Performance H1-2018 Financials Revenues [$M] +9.5%  Revenues increase +$76M, or +9.5%, y-o-y −Organic growth +3.4% y-o-y, with BSI up +5.5%, 875.4 and BEST segment down -12.6% 799.8 −Acquisitions add +0.6% y-o

6. Slide 6: H1 2018 Operating Performance

   GROUP OVERVIEW: H1 2018 Operating Performance(1) Bruker BIOSPIN Group  BIOSPIN revenue up low single digits with modest growth in NMR and strong preclinical imaging (PCI) performance  NMR applied & clinical phenomics solutions with strong growth  PCI revenue significantly higher  After-market se

7. Slide 7: H1 2018 Operating Performance

   GROUP OVERVIEW: H1 2018 Operating Performance(1) Bruker NANO Group  NANO high-single digit revenue growth, driven by strong industrial and academic research, as well as Semi demand  Good AXS results in academia and strong growth in industrial markets  Nano Surfaces and Nano Analysis revenues high

8. Slide 8: Innovative products for Proteomics, Phenomics and Biopharma Drug Discovery & Development

   INNOVATION AND PORTFOLIO TRANSFORMATION: Innovative products for Proteomics, Phenomics and Biopharma Drug Discovery & Development Launched June 2018 at ASMS scimaX™ MRMS for biopharma and phenomics timsTOFTM Pro for proteomics  ESI and MALDI with novel Bruker Maxwell magnet  Unique trapped ion mob

9. Slide 9: M&A supports both Project Accelerate and Bruker's Core Businesses

   VALUE-ADDED BOLT-ON ACQUISITIONS YEAR-TO-DATE 2018: M&A supports both Project Accelerate and Bruker’s Core Businesses Dual Goals of Profitable Growth and High ROIC IRM2 Support Project Accelerate in Cell Microscopy, Pharma & Applied initiatives Support growth of core business & profitability Support

10. Slide 10: 2018 Key Priorities

    2018 Key Priorities Position company for further organic Revenue Growth Acceleration: drive Project Accelerate high-growth, high-margin initiatives Transform Portfolio by investing in Project Accelerate Sustain Margin Expansion with continued Operational & Commercial Excellence initiatives Continue

11. Slide 11: Q2 2018 & H1 2018 Financial Update

    Q2 2018 & H1 2018 Financial Update 11

12. Slide 12: Q2 2018 Overview

    NON-GAAP FINANCIAL PERFORMANCE: Q2 2018 Overview [$ m, except EPS] Q2 2018 Q2 2017(1) Δ COMMENTS Revenues 443.7 414.9 +6.9%  Reported revenue +6.9%, organic growth +2.9% Operating Profit 58.9 53.5 +10%  Operating profit up +10% Margin (%) 13.3% 12.9% +40 bps  Operating margin +40 bps: strong oper

13. Slide 13: Q2 2018 Revenue Bridge

    Q2 2018 Revenue Bridge Q2 2018 DRIVERS Q2 2018 Revenue  Reported revenue +6.9% Organic Currency Portfolio Total  Organic revenue +2.9%: strong result at all three +2.9% +3.3% +0.7% +6.9% BSI Groups more than offset a significant year- over-year BEST decline – BSI +7.1% organic Q2 2018 Revenue Brid

14. Slide 14: Q2 2018 Non-GAAP Results

    Q2 2018 Non-GAAP Results [$ m, except EPS] Q2 2018 Q2 2017(1) Δ COMMENTS Total Revenues 443.7 414.9 +6.9%  Gross margin +70 bps: strong operational improvements at Gross Profit 211.4 194.4 +9% CALID and BioSpin and favorable Margin (% of revenues) 47.6% 46.9% +70 bps business mix, partially offset

15. Slide 15: H1 2018 Revenue Bridge

    H1 2018 Revenue Bridge H1 2018 DRIVERS H1 2018 Revenue  Reported revenue +9.5% Organic Currency Portfolio Total  Organic revenue +3.4%, driven primarily by CALID +3.4% +5.5% +0.6% +9.5% and NANO – BSI +5.5% organic – BEST down -12.6% H1 2018 Revenue Bridge [$M] organic (net of intercompany +$27.4M

16. Slide 16: H1 2018 Non-GAAP Results

    H1 2018 Non-GAAP Results [$ m, except EPS] H1 2018 H1 2017(1) Δ COMMENTS Total Revenues 875.4 799.8 +9.5%  Gross margin +40 bps: higher volume, favorable mix and Gross Profit 416.4 377.8 +10% operational improvements at Margin (% of revenues) 47.6% 47.2% +40 bps CALID and BioSpin, partially SG&A -2

17. Slide 17: H1 2018 Cash Flow

    H1 2018 Cash Flow [$ m] H1 2018 H1 2017 Δ COMMENTS Net Income 58.9 45.7 +13.2  Free cash flow up $68.1M y-o-y, driven by: Depreciation & amortization 32.4 31.1 +1.3 – Higher net income Changes in working capital* 5.1 -20.0 +25.1 – Working capital improvement y-o-y Other -16.5 -41.4 +24.9 – Increase

18. Slide 18: FY 2018 Outlook

    FY 2018 Outlook 18

19. Slide 19: FY 2018 Guidance: Adjusting revenue growth; margin expansion and EPS guidance unchanged

    FY 2018 Guidance: Adjusting revenue growth; margin expansion and EPS guidance unchanged FY 2018 Guidance 2018 ASSUMPTIONS  Organic revenue growth Revenue Growth y-o-y Approximately +6.5% approximately +3.5% (prior +7%) (prior +3%)  Acquisition revenue Non-GAAP Operating +50 bps to +80 bps growth:

20. Slide 20: Appendix

    Appendix 20

21. Slide 21: Q2 2018 GAAP Results

    Q2 2018 GAAP Results [$M, except EPS] Q2 2018 Q2 2017(1) Δ Total Revenues 443.7 414.9 +7% Gross Profit 205.2 184.5 +11% Margin (% of sales) 46.2% 44.5% SG&A -110.6 -102.5 +8% (% of revenues) 24.9% 24.7% R&D -43.6 -40.3 +8% (% of revenues) 9.8% 9.7% Operating Income 48.8 35.3 +38% (% of revenues) 11.

22. Slide 22: Q2 2018 Reconciliation of GAAP and Non-GAAP Results

    Q2 2018 Reconciliation of GAAP and Non-GAAP Results [$M, except EPS] Q2 2018 Q2 2017(1) GAAP Operating Income 48.8 35.3 Restructuring Costs 0.7 3.8 Acquisition-Related Costs 0.1 5.9 Purchased Intangible Amortization 7.8 7.5 Other Costs 1.5 1.0 TOTAL 10.1 18.2 Non-GAAP Operating Income 58.9 53.5 Non-

23. Slide 23: H1 2018 GAAP Results

    H1 2018 GAAP Results [$M, except EPS] H1 2018 H1 2017(1) Δ Total Revenues 875.4 799.8 +10% Gross Profit 404.6 360.9 +12% Margin (% of sales) 46.2% 45.1% SG&A -220.9 -200.6 +10% (% of revenues) 25.2% 25.1% R&D -86.8 -77.9 +11% (% of revenues) 9.9% 9.7% Operating Income 86.9 72.9 +19% (% of revenues)

24. Slide 24: H1 2018 Reconciliation of GAAP and Non-GAAP Results

    H1 2018 Reconciliation of GAAP and Non-GAAP Results [$M, except EPS] H1 2018 H1 2017(1) GAAP Operating Income 86.9 72.9 Restructuring Costs 4.2 3.9 Acquisition-Related Costs 1.1 8.7 Purchased Intangible Amortization 14.6 14.4 Other Costs 5.0 2.8 TOTAL 24.9 29.8 Non-GAAP Operating Income 111.8 102.7

25. Slide 25: Q2 2018 Cash Flow

    Q2 2018 Cash Flow [$ m] Q2 2018 Q2 2017 Δ COMMENTS Net Income 31.5 24.0 +7.5  Free cash flow improves $53.9M y-o-y, driven by: Depreciation & amortization 16.6 16.0 +0.6 – Higher net income Changes in working capital* 14.8 -20.5 +35.3 – Working capital improvement vs. Q2-17 Other -26.8 -36.7 +9.9 –

26. Slide 26: Balance Sheet

    Balance Sheet [$M] Jun 30, 2018 Dec 31, 2017 Jun 30, 2017 Total Assets 1,806.0 1,948.5 1,912.9 Working Capital* 683.6 714.7 653.8 Intangibles, Net & Other 364.8 323.2 360.5 Long-Term Assets [$M] Jun 30, 2018 Dec 31, 2017 Jun 30, 2017 Cash, Cash Equivalents & 258.7 439.2 440.3 Short-term Investments

27. Slide 27: BSI and BEST GAAP Performance

    Q2 2018 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q2 2018 Q2 2017(1) Δ REVENUE Scientific Instruments (BSI) 402.4 362.5 +11% Organic Revenue Growth (%) +7.1% +4.4% Energy & Supercon Technologies (BEST) 42.7 54.0 -21% Corporate Eliminations -1.4 -1.6 Energy & Supercon Technologies (BE

28. Slide 28: BSI and BEST GAAP Performance

    H1 2018 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] H1 2018 H1 2017(1) Δ REVENUE Scientific Instruments (BSI) 789.4 708.9 +11% Organic Revenue Growth (%) +5.5% +1.6% Energy & Supercon Technologies (BEST) 88.3 94.1 -6% Corporate Eliminations -2.3 -3.2 Energy & Supercon Technologies (BES

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