Bruker Corporation · NASDAQ:BRKR
Bruker — Q3 2021 Earnings Presentation
30 slides from Bruker's earnings presentation, Nov 1, 2021
Slide 1: Q3 2021 Earnings Presentation
BRUKER CORPORATION (NASDAQ: BRKR) Q3 2021 Earnings Presentation November 1, 2021 Frank H. Laukien, President & CEO Gerald Herman, Executive Vice President & Chief Financial Officer Miroslava Minkova, Senior Director of Investor Relations & Corporate Development
Slide 2: Safe Harbor Statement
BRUKER CORP ORATI ON Safe Harbor Statement 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 193
Slide 3: Q3 2021 Business Update
Q3 2021 Business Update 3
Slide 4: Q3 2021: Continued Strong Revenue, Margin and EPS Growth
Q3 2021 BUSINESS UPDATE Q3 2021: Continued Strong Revenue, Margin and EPS Growth on Strong Demand for Bruker Products and Solutions Q3 2021 Performance Year-over-Year Q3 Financials Revenues [$M] ❖ Revenue increased $97.5M, or +19.1% ▪ Organic growth of +17.8%, with BSI up +16.8% and BEST up +29.3% 6
Slide 5: YTD Q3 2021: Excellent Demand Drives Higher Revenues, Margins and EPS
YEAR TO DATE (YTD) Q3 2021 BUSINESS UPDATE YTD Q3 2021: Excellent Demand for Bruker Products and Robust Recovery Drive Higher Revenues, Margins and EPS YTD Q3 2021 Performance Year-over-Year YTD Q3 Financials Revenues [$M] ❖ Revenue increased $374.4M, or +27.5% ▪ Organic growth of +22.6%, with BSI u
Slide 6: Constant Currency YTD Q3 2021 Revenue Performance Year-over-Year
GROUP OVERVIEW Constant Currency YTD Q3 2021 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN up low 20%, on strengthened customer demand and installations ▪ BIOSPIN systems up strongly, including three GHz-class NMR systems YTD ▪ Aftermarket and software revenue higher Bruker CA
Slide 7: Constant Currency YTD Q3 2021 Revenue Performance Year-over-Year
GROUP OVERVIEW Constant Currency YTD Q3 2021 Revenue Performance Year-over-Year(1) Bruker NANO Group ▪ NANO up in the mid 20%, with strong rebound in industrial and academic businesses ▪ X-Ray, Nano Surfaces and Nano Analysis tools revenue with significant step-up ▪ Microelectronics and semiconducto
Slide 8: Microbiology & Molecular DX: MALDI Biotyper Franchise Growth
PROJECT ACCELERATE 2.0 UPDATES Microbiology & Molecular DX: MALDI Biotyper Franchise Growth U.S. MALDI Biotyper business accelerates after Sepsityper® FDA clearance in December 2020 ▪ MBT Sepsityper workflow adoption training for nearly 100 U.S. MBT customers YTD Q3-21 ▪ MBT Sepsityper® Kit for Rapi
Slide 9: NSF-Funded Network for Advanced NMR Orders Two 1.1 GHz NMRs
PR O JECT ACCEL ER AT E 2.0 UP DATES NSF-Funded Network for Advanced NMR Orders Two 1.1 GHz NMRs NAN consortium to operate with ‘hub and spoke’ model to meet evolving scientific and disease biology needs ❖ University of Connecticut hub facilitating access to NMR instrumentation, experimental protoco
Slide 10: Q3 2021 Financial Update
Q3 2021 Financial Update 10
Slide 11: Q3 2021 Non-GAAP Financial Performance
Q3 2021 YEAR-OVER-YEAR COMPARISON Q3 2021 Non-GAAP Financial Performance [$ m, except EPS] Q3 2021 Q3 2020 Δ Comments Revenues $608.9 $511.4 +19.1% Operating Income $125.4 $94.9 +32.1% ▪ Reported revenue up +19.1%, organic revenue up +17.8% Operating Margin (%) 20.6% 18.6% +200 bps ▪ Non-GAAP operat
Slide 12: Q3 2021 Revenue Bridge
NON-GAAP FINANCIAL PERFORMANCE Q3 2021 Revenue Bridge Q3 2021 Revenue Performance Year-over-Year Q3 2021 DRIVERS Organic Currency Portfolio Total ▪ Reported revenue up +19.1% +17.8% +1.0% +0.3% +19.1% ▪ Organic revenue up +17.8% Q3 2021 Revenue Bridge [$M] ✓ BSI up +16.8% organic +$5.2M +$91.0M +$1.
Slide 13: Q3 2021 Non-GAAP Results Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE Q3 2021 Non-GAAP Results Year-over-Year [$ m, except EPS] Q3 2021 Q3 2020 Δ Comments Total Revenues 608.9 511.4 +19.1% ▪ Gross margin up +210 bps, driven by higher Gross Profit 314.9 253.8 +24.1% Margin (% of revenues) 51.7% 49.6% +210 bps revenue and volume leverage S
Slide 14: YTD Q3 2021 Revenue Bridge
NON-GAAP FINANCIAL PERFORMANCE YTD Q3 2021 Revenue Bridge YTD Q3 2021 Revenue Performance Year-over-Year YTD Q3 2021 DRIVERS Organic Currency Portfolio Total ▪ Reported revenue up +27.5% +22.6% +4.4% +0.5% +27.5% ▪ Organic revenue up +22.6% YTD 2021 Revenue Bridge [$M] ✓ BSI up +22.9% organic, with
Slide 15: YTD Q3 2021 Non-GAAP Results Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE YTD Q3 2021 Non-GAAP Results Year-over-Year [$ m, except EPS] YTD Q3 2021 YTD Q3 2020 Δ Comments Total Revenues 1,734.4 1,360.0 +27.5% ▪ Gross margin up +370 bps on higher Gross Profit 884.8 643.6 +37.5% Margin (% of revenues) 51.0% 47.3% +370 bps revenue, volume lever
Slide 16: YTD Q3 2021 Cash Flow Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE YTD Q3 2021 Cash Flow Year-over-Year [$ m] YTD Q3 2021 YTD Q32020 Δ Comments GAAP Net Income 204.6 90.1 +114.5 YTD Q3-21 free cash flow of $80.2M, Depreciation & amortization 66.1 58.7 +7.4 compared to $60.8M in YTD Q3-20: Changes in working capital* (117.1) (80.7) -36
Slide 17: FY 2021 Outlook
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Slide 18: Raising FY 2021 revenue growth, non-GAAP operating margin and non-GAAP EPS outlook
FY 2021 GUIDANCE Raising FY 2021 revenue growth, non-GAAP operating margin and non-GAAP EPS outlook FY 2021 Assumptions New FY 2021 Guidance (Comparison to previous (Non-GAAP, Year-over-Year) guidance in parentheses) ▪ Organic revenue growth: +16.5% to +17.5% Revenue Growth +19.5% to +20.5% (up from
Slide 19: Appendix
Q3 2021 Appendix 19
Slide 20: Q3 2021 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth
APPENDIX Q3 2021 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth [$M] Q3 2021 Q3 2020 Revenue as of the prior comparable period 511.4 521.1 Non-GAAP components: Acquisitions and divestures 1.3 1.9 Organic 91.0 (24.2) Currency 5.2 12.6 Revenue as of the current period 608.9 5
Slide 21: Q3 2021 GAAP Results Year-over-Year
APPENDIX Q3 2021 GAAP Results Year-over-Year [$M, except EPS] Q3 2021 Q3 2020 Δ Total Revenues 608.9 511.4 +19.1% Gross Profit 308.7 248.3 +24.3% Margin (% of revenue) 50.7% 48.6% SG&A (141.3) (114.6) +23.3% (% of revenues) 23.2% 22.4% R&D (52.1) (48.3) +7.9% (% of revenues) 8.6% 9.4% Operating Inco
Slide 22: Q3 2021 Reconciliation of GAAP and Non-GAAP Results Year-over-Year
APPENDIX Q3 2021 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] Q3 2021 Q3 2020 GAAP Operating Income 113.2 81.2 Restructuring Costs 1.1 1.9 Acquisition-Related Costs 0.7 1.4 Purchased Intangible Amortization 9.2 9.1 Other Costs 1.2 1.3 TOTAL 12.2 13.7 Non-GAAP Operating
Slide 23: YTD Q3 2021 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth
APPENDIX YTD Q3 2021 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth [$M] YTD 2021 YTD 2020 Revenue as of the prior comparable period 1,360.0 1,472.7 Non-GAAP components: Acquisitions and divestures 6.3 7.9 Organic 307.4 (122.6) Currency 60.7 2.0 Revenue as of the current pe
Slide 24: YTD Q3 2021 GAAP Results Year-over-Year
APPENDIX YTD Q3 2021 GAAP Results Year-over-Year [$M, except EPS] YTD Q3 2021 YTD Q3 2020 Δ Total Revenues 1,734.4 1,360.0 +27.5% Gross Profit 868.0 626.8 +38.5% Margin (% of revenue) 50.0% 46.1% SG&A (407.9) (338.2) +20.6% (% of revenues) 23.5% 24.9% R&D (162.7) (140.9) +15.5% (% of revenues) 9.4%
Slide 25: YTD Q3 2021 Reconciliation of GAAP and Non-GAAP Results Year-over-Year
APPENDIX YTD Q3 2021 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] YTD Q3 2021 YTD Q3 2020 GAAP Operating Income 287.9 135.5 Restructuring Costs 5.2 5.7 Acquisition-Related Costs 3.9 (0.5) Purchased Intangible Amortization 27.2 26.8 Other Costs 2.2 8.6 TOTAL 38.5 40.6 N
Slide 26: Q3 2021 Cash Flow Year-over-Year
APPENDIX Q3 2021 Cash Flow Year-over-Year [$M] Q3 2021 Q3 2020 Δ Comments GAAP Net Income 88.1 55.3 +32.8 Q3 2021 cash flow of $7.6M, compared to Depreciation & amortization 22.2 20.5 +1.7 $64.8M in Q3-20: Changes in working capital* (51.7) (18.9) (32.8) ▪ Higher net income Other items (34.7) 25.5 (
Slide 27: Balance Sheet
APPENDIX Balance Sheet [$M, except EPS] Sep 30, 2021 Dec 31, 2020 Total Assets 3,126.0 3,049.0 Working Capital* 963.8 893.0 Goodwill, Intangibles, Net & Other Long-Term Assets 749.0 728.5 [$M, except EPS] Sep 30, 2021 Dec 31, 2020 Cash, Cash Equivalents & Short-term Investments 669.8 731.8 Financial
Slide 28: Q3 2021 BSI and BEST GAAP Performance Year-over-Year
APPENDIX Q3 2021 BSI and BEST GAAP Performance Year-over-Year [$M] Q3 2021 Q3 2020 Δ REVENUE Scientific Instruments (BSI) 555.6 470.5 +18% Organic Revenue Growth (%) +16.8% -3.0% Energy & Supercon Technologies (BEST) 57.0 43.8 +30% Corporate Eliminations (3.7) (2.9) Energy & Supercon Technologies (B
Slide 29: YTD Q3 2021 BSI and BEST GAAP Performance Year-over-Year
APPENDIX YTD Q3 2021 BSI and BEST GAAP Performance Year-over-Year [$M] YTD Q3 2021 YTD Q3 2020 Δ REVENUE Scientific Instruments (BSI) 1,578.9 1,235.3 +28% Organic Revenue Growth (%) +22.9% -7.9% Energy & Supercon Technologies (BEST) 166.0 134.8 +23% Corporate Eliminations (10.5) (10.1) Energy & Supe
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