Bruker Corporation · NASDAQ:BRKR
Bruker — 35th Annual J.P. Morgan Healthcare Conference (January 2017)
26 slides from Bruker's conference presentation, Jan 9, 2017
Slide 1: Bruker drives profitable growth and margin expansion
Bruker drives profitable growth and margin expansion by enabling scientific discoveries and by delivering high- performance analytical, life science and diagnostic solutions © Bruker Corporation Innovation with Integrity
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
Slide 3: Key 2017 Messages & Long-Term Goals
Key 2017 Messages & Long-Term Goals 1. Bruker is a differentiated leader in attractive markets for analytical, life science and diagnostic tools, and our brand stands for innovation: • Market leader in unique, high value technologies: NMR, MALDI-TOF, MALDI BioTyper, FTMS, AFM, XRD & Superconductors
Slide 4: I. Bruker Business and Financial Overview
I. Bruker Business and Financial Overview Company Overview Technologies, Products & Markets From Transformation to Operational Excellence Financial Performance & Capital Allocation © Bruker Corporation 4
Slide 5: Bruker Overview: Three Primary Life-Science Tools Groups with Global Footprint
Three Primary Life-Science Tools Bruker Overview Groups with Global Footprint • Founded in 1960 Revenue breakdown (% as of Q3-16 YTD): BioSpin Systems • FY2016E revenue: ~$1.6 billion 34% • R&D investment: ~9% of revenue 75% CALID • ~75% of revenue from scientific and diagnostic instruments BEST 8%
Slide 6: Bruker Technology Portfolio & Key Markets
Bruker Technology Portfolio & Key Markets Differentiated, high-performance scientific instruments, Enabling research and analysis analytical tools and diagnostic solutions of life and materials at: Preclinical Nuclear Magnetic Imaging Resonance (NMR) Microscopic & Nano-Scales Mass Microbiology Spect
Slide 7: Bruker Scientific Instruments (BSI) Organization
Bruker Scientific Instruments (BSI) Organization Three Life Science Tools & Diagnostics (LST & DX) Groups: BioSpin Group CALID Group NANO Group ~34% of Q3-16 YTD revenue ~29% of Q3-16 YTD revenue ~29% of Q3-16 YTD revenue • NMR/EPR for Life-Science Research & Pharma • Mass Spectrometry for • Atomic
Slide 8: Bruker Energy & Supercon Technologies (BEST) Segment
Bruker Energy & Supercon Technologies (BEST) Segment In Nov. 2016, BEST acquired OST for $17.5M to Establish Global Market Leadership in Superconductors BEST in 2016E: ~8% of BRKR Q3-16 YTD revenue OST in 2016E: ~$50M in revenue Supplier of superconductors and physics technologies for Supplier o
Slide 9: Bruker 2013-2015: Process, Cost Structure & Efficiency Transformation
Bruker 2013-2015 Process, Cost Structure & Efficiency Transformation: OPERATING UNDER NEW BRUKER MANAGEMENT PROCESS SINCE 2013 WITH CLEAR OPPORTUNITIES FOR CONTINUOUS IMPROVEMENTS OUTSOURCING/ MANAGEMENT PORTFOLIO FACILITIES PROCUREMENT RESOURCE ALLOCATION SYSTEMS • Divested/shut down • Exited small
Slide 10: Bruker 2016-2018: From Transformation to Operational Excellence
Bruker 2016-2018 From Transformation to Operational Excellence: 2013 2014 2015 2016 2017 2018 Outsourcing Bruker BioSpin Rightsizing Operational Excellence Outsourcing Bruker NANO • Lean manufacturing Rightsizing & Footprint Consolidation • Continued outsourcing Outsourcing • Better business process
Slide 11: Bruker Financial Overview
Bruker Financial Overview Despite end market and FX headwinds, Bruker is delivering strong margin expansion and EPS growth Reported Revenue Non-GAAP Operating Margin In $m >400 bps Operating Margin expansion over 2 years (2%) (-1%) 14.3% 1.2 2000 (-10%) +0% guidance guidance 15.0% 13.3% 1 (2%) 1500
Slide 12: Bruker Q3-16 YTD financials
Bruker Q3-16 YTD financials Continued solid margin expansion and profitability improvements: Non-GAAP Non-GAAP Non-GAAP EBITDA Non-GAAP Gross Margin Operating Margin EPS 47.8% 46.1% 11.5% 12.8% $180M $0.73 $163M $0.51 +170 bps +130 bps +$17M +43% Q3-15 YTD Q3-16 YTD * Non-GAAP gross margin, non-GAAP
Slide 13: Working Capital Efficiency & Disciplined Capital Allocation
Working Capital Efficiency & Disciplined Capital Allocation $1,400 0.60 SHARE BUYBACK PROGRAM $1,200 • BRKR share repurchase of $225M 0.46 authorized in November 2015, $1,000 0.38 completed in December 2016 $832m 0.40 $800 $613 QUARTERLY DIVIDEND $600 • Bruker pays a quarterly dividend of 0.20 $0.04
Slide 14: II. Bruker Strategy for Profitable Growth
II. Bruker Strategy for Profitable Growth High-impact innovation and new high-margin products Entry into new or adjacent markets Service, Consumables & After-Market business Operational & Commercial Excellence Complementary, financially disciplined M&A © Bruker Corporation 14
Slide 15: High Impact Innovation And New High-Margin Products
High Impact Innovation And New High-Margin Products Bruker invests in four strategic focus areas with attractive growth and defensible, high-margin opportunities: 1. Life Science 3. Clinical Molecular Research, Research Microbiology & Diagnostics 2. Biopharma 4. Nano-Analysis, & Applied Microscopy &
Slide 16: High Impact Innovation: Life Science Molecular Research
High Impact Innovation Life Science Molecular Research Ultra-high field NMR for structural biology and timsTOFTM next-gen Trapped Intrinsically Disordered Proteins (IDPs) Ion Mobility QTOF • Key technology to study IDP biological function • Very high TIMS mobility resolution (>200), • UHF-NMR expand
Slide 17: High Impact Innovation: Biopharma & Applied Markets
High Impact Innovation Biopharma & Applied Markets rapifleX MALDI PharmaPulse™ NMR FoodScreeners • Label-free ultra-high throughput MS- screening for • Bruker NMR, MS and FT-IR/NIR instruments are critical to quality, primary screens on millions of compounds in authenticity and safety testing in foo
Slide 18: High Impact Innovation: Clinical Research, Microbiology & Diagnostics
High Impact Innovation Clinical Research, Microbiology & Diagnostics Clinical Microbiology Phenomics by NMR • Bruker pioneered MALDI Biotyper to identify bacteria, yeasts • NMR for translational phenomics research and fungi more accurately and with short time-to-result • International Phenome Center
Slide 19: High Impact Innovation: Nano-Analysis, Microscopy & Materials Research
High Impact Innovation Nano-Analysis, Microscopy & Materials Research Next-gen Optogenetics & Next-gen X-Ray Semiconductor Metrology Super-Resolution Cell Microscopy • Chip & memory makers require next-gen nano-metrology tools to • Simultaneous, all-optical stimulation and imaging platforms for ensu
Slide 20: Expanding into Adjacent Markets
Expanding into Adjacent Markets I. FOCUS ON PHARMA: NMR, MASS SPEC & FT-IR III. BRUKER EXPLOSIVES TRACE DETECTION (ETD) • NMR & HRAM MS combined FUSION solution • Next-generation benchtops for airport • MALDI PharmaPulse UHTS security, e.g. at FRA airport • Fragment-based drug discovery by NMR • Hig
Slide 21: Grow After-Market Business
Grow After-Market Business Services, Consumables and Software Focus on After-Market revenue 450 BIOSPIN NANO 400 CALID 350 $ millions Focus on Service 300 250 CALID 200 2013 2014 2015 2016E © Bruker Corporation 21
Slide 22: Operational & Commercial Excellence
Operational & Commercial Excellence Strengthen ERP/CRM, Commercial/Operational Processes and Order Execution New marketing systems and analytics Key account management Improved pricing and discounting practices CRM roll out on-going New sales force capabilities Lean factories and further
Slide 23: Complementary, financially disciplined M&A
Complementary, financially disciplined M&A Microbiology, Consumables and Pathology Examples: Deliver complete MALDI Biotyper and MALDI Tissuetyper end-to-end solutions for accelerated growth High-margin consumables and software for fundamental margin improvement over time Jan. 3rd, 2017: Innovat
Slide 24: Key 2017 Messages & Long-Term Goals
Key 2017 Messages & Long-Term Goals 1. Bruker is a differentiated leader in attractive markets for analytical, life science and diagnostic tools, and our brand stands for innovation: • Market leader in unique, high value technologies: NMR, MALDI-TOF, MALDI BioTyper, FTMS, AFM, XRD & Superconductors
Slide 25: www.bruker.com
www.bruker.com © Bruker Corporation 25
Slide 26: Appendix: Non-GAAP EBITDA Reconciliation to GAAP Measures
Appendix Bruker Corp. Non-GAAP EBITDA Reconciliation to GAAP Measures (in millions) Nine Months Ended September 30, 2016 2015 Non-GAAP Net Income Attributable to Bruker (1) $ 118.6 $ 86.6 Non-GAAP Adjustments: Interest Expense, net (2) 9.4 9.2 Income Tax Provision (1) 15.4 28.1 Depreciation Expense
Bruker — 35th Annual J.P. Morgan Healthcare Conference (January 2017) on 6ix