Bruker Corporation · NASDAQ:BRKR
Bruker — Q2 2020 Earnings Presentation
28 slides from Bruker's earnings presentation, Aug 3, 2020
Slide 1: Bruker Corporation Q2 2020 Earnings Presentation
Bruker Corporation (Nasdaq: BRKR) Q2 2020 Earnings Presentation Frank Laukien, President & CEO Gerald Herman, Chief Financial Officer August 3, 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 amende
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: Q2 2020 & H1 2020 Business Update
Q2 2020 & H1 2020 Business Update 4
Slide 5: Q2 2020 Negatively Affected by COVID-19 Disruption and Softer Demand
Q2 2020 Negatively Affected by COVID-19 Disruption and Softer Demand Q2 2020 Performance Year-over-Year Q2 Financials Revenues [$M] -13.4% ▪ Revenues decreased -$66M, or -13.4% −Organic decline of -12.7% on COVID-19 490.2 424.6 disruption and softer instrument demand −Acquisitions add +0.4% −Negativ
Slide 6: H1 2020 Negatively Affected by COVID-19 Disruption and Softer Demand
H1 2020 Negatively Affected by COVID-19 Disruption and Softer Demand H1 2020 Performance Year-over-Year H1 2020 Financials Revenues [$M] -10.8% ▪ Revenues decreased -$103M, or -10.8% 951.6 −Organic decline of -10.3% due to COVID-19 848.6 disruption and softer instrument demand −Acquisitions add +0.6
Slide 7: Group Overview: H1 2020 Revenue Performance Year-over-Year
GROUP OVERVIEW: H1 2020 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN down low double digits due to COVID-19 pandemic-related customer lab closures and installation delays, as well as some temporary BioSpin facility closures ▪ NMR and PCI systems significantly lower, as certai
Slide 8: Group Overview: H1 2020 Revenue Performance Year-over-Year
GROUP OVERVIEW: H1 2020 Revenue Performance Year-over-Year(1) Bruker NANO Group ▪ NANO down mid-teens due to temporary facility closures, worldwide COVID-19 academic customer closures and weaker industrial demand ▪ X-ray, Nano Surface and Nano Analysis tools lower due to academic customer closures a
Slide 9: TimsTOF Innovations at ASMS 2020
PROJECT ACCELERATE TimsTOF Innovations at ASMS 2020 • Novel MALDI-2 source for timsTOF fleXTM ✓ 1x-2x orders of magnitude increase in sensitivity for many small molecules and lipids ✓ Increases applications range of MALDI mass spectrometry and MS imaging • New 4D Proteomics workflows: ✓ prm-PASEF ✓
Slide 10: Second 1.2 GHz Accepted / NMR in COVID-19 Research
PROJECT ACCELERATE Second 1.2 GHz Accepted / NMR in COVID-19 Research • Second 1.2 GHz NMR acceptance at ETH (July 2020) ✓ Solid-state NMR for study of materials and biological systems, e.g. protein fibrils ✓ Methods for in-cell structural biology ✓ Catalysts and functional materials for energy conv
Slide 11: Q2 2020 & H1 2020 Financial Update
Q2 2020 & H1 2020 Financial Update 11
Slide 12: Q2 2020 Overview
NON-GAAP FINANCIAL PERFORMANCE: Q2 2020 Overview [$ m, except EPS] Q2 2020 Q2 2019 Δ COMMENTS Revenues 424.6 490.2 -13.4% ▪ Reported revenue -13.4%, organic revenue -12.7% Operating Profit 49.0 73.7 -33.5% Operating Margin (%) 11.5% 15.0% -350 bps ▪ Operating profit -34% ▪ Operating margin -350 bps
Slide 13: Q2 2020 Revenue Bridge
Q2 2020 Revenue Bridge Q2 2020 DRIVERS Q2 2020 Revenue Performance Year-over-Year ▪ Reported revenue -13.4% Organic Currency Portfolio Total ▪ Organic revenue -12.7% -12.7% -1.1% +0.4% -13.4% – BSI Groups -12.7% organic – BEST -12.5% organic (net of intercompany eliminations) Q2 2020 Revenue Bridge
Slide 14: Q2 2020 Non-GAAP Results Year-over-Year
Q2 2020 Non-GAAP Results Year-over-Year [$ m, except EPS] Q2 2020 Q2 2019 Δ COMMENTS Total Revenues 424.6 490.2 -13.4% ▪ Gross margin -440 bps, due Gross Profit 191.7 242.8 -21.0% to lower volume and Margin (% of revenues) 45.1% 49.5% -440 bps productivity on COVID-19 SG&A -98.6 -120.6 -18.2% disrup
Slide 15: H1 2020 Revenue Bridge
H1 2020 Revenue Bridge H1 2020 DRIVERS H1 2020 Revenue Performance Year-over-Year ▪ Reported revenue -10.8% Organic Currency Portfolio Total ▪ Organic revenue -10.3% -10.3% -1.1% +0.6% -10.8% – BSI Groups down -10.5% organic – BEST down -8.5% organic (net of intercompany H1 2020 Revenue Bridge [$M]
Slide 16: H1 2020 Non-GAAP Results Year-over-Year
H1 2020 Non-GAAP Results Year-over-Year [$ m, except EPS] H1 2020 H1 2019 Δ COMMENTS Total Revenues 848.6 951.6 -10.8% ▪ Gross margin -330 bps, due Gross Profit 389.8 468.3 -16.8% to lower volume, reduced Margin (% of revenues) 45.9% 49.2% -330 bps productivity and unfavorable SG&A -216.0 -237.4 -9.
Slide 17: H1 2020 Cash Flow Year-over-Year
H1 2020 Cash Flow Year-over-Year [$ m] H1 2020 H1 2019 Δ COMMENTS GAAP Net Income 34.8 67.7 -32.9 ▪ Free cash outflow of -$4.0M, vs. -$3.8M in H1-19: Depreciation & amortization 38.2 38.4 -0.2 – Lower net income Changes in working capital* -71.9 -39.7 -32.2 – Continued CAPEX in facilities for site O
Slide 18: FY 2020 Outlook
FY 2020 Outlook 18
Slide 19: FY 2020 Outlook
FY 2020 Outlook FY 2020 Guidance Remains Suspended ▪ On March 27, 2020, Bruker suspended its FY 2020 guidance due to the uncertain business conditions created by COVID-19. Potential Q3 2020 Scenarios ▪ Bruker anticipates a sequential improvement in financial results from the second quarter to the th
Slide 20: Appendix
Appendix 20
Slide 21: Q2 2020 GAAP Results Year-over-Year
Q2 2020 GAAP Results Year-over-Year [$M, except EPS] Q2 2020 Q2 2019 Δ Total Revenues 424.6 490.2 -13% Gross Profit 186.2 230.4 -19% Margin (% of sales) 43.9% 47.0% SG&A -102.4 -124.5 -18% (% of revenues) 24.1% 25.4% R&D -44.1 -48.5 -9% (% of revenues) 10.4% 9.9% Operating Income 37.9 53.5 -29% (% o
Slide 22: Q2 2020 Reconciliation of GAAP and Non-GAAP Results
Q2 2020 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] Q2 2020 Q2 2019 GAAP Operating Income 37.9 53.5 Restructuring Costs 1.5 1.4 Acquisition-Related Costs -0.8 6.2 Purchased Intangible Amortization 9.0 9.9 Other Costs 1.4 2.7 TOTAL 11.1 20.2 Non-GAAP Operating Income 4
Slide 23: H1 2020 GAAP Results Year-over-Year
H1 2020 GAAP Results Year-over-Year [$M, except EPS] H1 2020 H1 2019 Δ Total Revenues 848.6 951.6 -11% Gross Profit 378.5 445.1 -15% Margin (% of sales) 44.6% 46.8% SG&A -223.6 -244.6 -9% (% of revenues) 26.3% 25.7% R&D -92.6 -94.9 -2% (% of revenues) 10.9% 10.0% Operating Income 54.3 95.4 -43% (% o
Slide 24: H1 2020 Reconciliation of GAAP and Non-GAAP Results
H1 2020 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] H1 2020 H1 2019 GAAP Operating Income 54.3 95.4 Restructuring Costs 3.8 5.4 Acquisition-Related Costs -1.9 11.1 Purchased Intangible Amortization 17.7 20.0 Other Costs 7.3 4.1 TOTAL 26.9 40.6 Non-GAAP Operating Incom
Slide 25: Q2 2020 Cash Flow Year-over-Year
Q2 2020 Cash Flow Year-over-Year [$ m] Q2 2020 Q2 2019 Δ COMMENTS GAAP Net Income 24.2 37.0 -12.8 ▪ Free cash outflow -$8.5M compared to -$7.4M in Q2-19: Depreciation & amortization 19.2 19.4 -0.2 – Lower net income Changes in working capital* -50.7 -13.7 -37.0 – Continued CAPEX in production facili
Slide 26: Balance Sheet
Balance Sheet [$M] Jun 30, 2020 Dec 31, 2019 Jun 30, 2019 Total Assets 2,943.4 2,771.5 2,349.7 Working Capital* 870.7 821.0 818.9 Intangibles, Net & Other 590.3 603.5 586.9 Long-Term Assets [$M] Jun 30, 2020 Dec 31, 2019 Jun 30, 2019 Cash, Cash Equivalents & 796.8 684.9 288.8 Short-term Investments
Slide 27: Q2 2020 GAAP Segment Results: BSI and BEST
Q2 2020 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Year-over-Year [$ m] Q2 2020 Q2 2019 Δ REVENUE Scientific Instruments (BSI) 383.3 442.4 -13% Organic Revenue Growth (%) -12.7% +3.4% Energy & Supercon Technologies (BEST) 44.8 51.9 -14% Corporate Eliminations -3.5 -4.1 Energy & Supercon Tec
Slide 28: H1 2020 GAAP Segment Results: BSI and BEST
H1 2020 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Year-over-Year [$ m] H1 2020 H1 2019 Δ REVENUE Scientific Instruments (BSI) 764.8 859.2 -11% Organic Revenue Growth (%) -10.5% +4.4% Energy & Supercon Technologies (BEST) 91.0 99.7 -9% Corporate Eliminations -7.2 -7.3 Energy & Supercon Tech