Bruker Corporation · NASDAQ:BRKR

Bruker — Q2 2022 Earnings Presentation

32 slides from Bruker's earnings presentation, Aug 3, 2022

  1. Slide 1: Q2 2022 Earnings Presentation

    BRUKER CORPORATION (NASDAQ: BRKR) Q2 2022 Earnings Presentation August 3, 2022 Frank H. Laukien, President & CEO Gerald Herman, Executive Vice President & Chief Financial Officer Justin Ward, Senior Director, Investor Relations & Corporate Development

  2. 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

  3. Slide 3: Business Update

    Q2 2022 Business Update 3

  4. Slide 4: Q2 2022: HSD Organic Revenue Growth; Supply Chain Delays Tempering Operating Margin

    Q2 2022 BUSINESS UPDATE Q2 2022: HSD Organic Revenue Growth; Supply Chain Delays and Growth Investments Tempering Operating Margin Q2 2022 Performance Year-over-Year Q2 Financials Revenues [$M] ❖ Organic bookings growth for BSI strong, with book-to-bill >1.1 ❖ Revenue increased $17.6M, or +3.1% +3.1

  5. Slide 5: H1 2022: Project Accelerate 2.0 Driving Robust Organic Revenue Growth

    H1 2022 BUSINESS UPDATE H1 2022: Project Accelerate 2.0 Driving Robust Organic Revenue Growth with Solid Gross Margin Improvement H1 2022 Performance Year-over-Year H1 Financials Revenues [$M] ❖ Organic bookings growth for BSI strong, with book-to-bill >1.1 ❖ Revenue increased $57.9M, or +5.1% +5.1%

  6. Slide 6: Constant Currency H1 2022 Revenue Performance Year-over-Year

    GROUP OVERVIEW Constant Currency H1 2022 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN revenue up high single digit %, despite one less GHz-class NMR in H1 2022 ▪ BIOSPIN bookings up double digits % driven by strength in academic and applied markets ▪ Received orders for three

  7. Slide 7: Constant Currency H1 2022 Revenue Performance Year-over-Year

    GROUP OVERVIEW Constant Currency H1 2022 Revenue Performance Year-over-Year(1) Bruker NANO Group ▪ BNANO up mid teens % driven by X-Ray and Nano Surfaces tools; bookings up high teens % ▪ Semiconductor metrology and microelectronics tools with continued strength ▪ Fluorescence microscopy up signific

  8. Slide 8: First Three Orders for Single-Story Ascend Evo 1.0 GHz Systems

    IN N OVATION IN F UN CTION AL STRUCT UR AL BIOLOGY First Three Orders for Single-Story Ascend Evo 1.0 GHz Systems New technological marvel provides structural biology researchers easier access to the sensitivity and resolution of GHz NMR ▪ Power of 1.0 GHz in a single-story lab Ascend ▪ Easy siting

  9. Slide 9: timsTOF Platform Advancing Life Sciences

    4 D P ROTEOMICS timsTOF Platform Advancing Life Sciences ❖ Unmatched Robustness (~60 SPD – 200 SPD) timsTOF HT: More than 100,000 ❖ Unparalleled Duty Cycle (PASEF, diaPASEF, prmPASEF, capsPASEF) unique peptides identified with ❖ High-Throughput Omics (5min, 20min methods) 60-minute nLC ❖ Identify mo

  10. Slide 10: Financial Update

    Q2 2022 Financial Update 10

  11. Slide 11: Q2 2022 Non-GAAP Financial Performance

    Q2 2022 YEAR-OVER-YEAR COMPARISON Q2 2022 Non-GAAP Financial Performance Comments (year-over-year) [$ m, except EPS] Q2 2022 Q2 2021 Δ ▪ Reported revenue up +3.1%, on strong FX headwind Revenues $588.4 $570.8 +3.1% ▪ Organic revenue growth of +8.8%; solid revenue execution Operating Income $97.7 $98

  12. Slide 12: Q2 2022 Revenue Bridge

    NON-GAAP FINANCIAL PERFORMANCE Q2 2022 Revenue Bridge Q2 2022 Revenue Performance Year-over-Year Q2 2022 Drivers (year-over-year) Organic Currency Portfolio Total ▪ Reported revenue up +3.1% +8.8% -7.3% +1.6% +3.1% ▪ Organic revenue up +8.8% Q2 2022 Revenue Bridge [$M] ✓ BSI up +8.1% organic +$50.1M

  13. Slide 13: Q2 2022 Non-GAAP Results Year-over-Year

    NON-GAAP FINANCIAL PERFORMANCE Q2 2022 Non-GAAP Results Year-over-Year [$ m, except EPS] Q2 2022 Q2 2021 Δ Comments (year-over-year) Total Revenues 588.4 570.8 +3.1% ▪ Gross margin up +180 bps on higher Project Gross Profit 304.7 285.6 +6.7% Margin (% of revenues) 51.8% 50.0% +180 bps Accelerate mix

  14. Slide 14: H1 2022 Revenue Bridge

    NON-GAAP FINANCIAL PERFORMANCE H1 2022 Revenue Bridge H1 2022 Revenue Performance Year-over-Year H1 2022 Drivers (year-over-year) Organic Currency Portfolio Total ▪ Reported revenue up +5.1% +9.6% -5.8% +1.3% +5.1% ▪ Organic revenue up +9.6% H1 2022 Revenue Bridge [$M] ✓ BSI up +8.8% organic +$108.3

  15. Slide 15: H1 2022 Non-GAAP Results Year-over-Year

    NON-GAAP FINANCIAL PERFORMANCE H1 2022 Non-GAAP Results Year-over-Year [$ m, except EPS] H1 2022 H1 2021 Δ Comments (year-over-year) Total Revenues 1,183.4 1,125.5 +5.1% ▪ Gross margin up +160 bps on higher Project Gross Profit 618.0 569.9 +8.4% Margin (% of revenues) 52.2% 50.6% +160 bps Accelerate

  16. Slide 16: H1 2022 Cash Flow Year-over-Year

    NON-GAAP FINANCIAL PERFORMANCE H1 2022 Cash Flow Year-over-Year [$ m] H1 2022 H1 2021 Δ Comments (year-over-year) GAAP Net Income 111.8 116.5 -4.7 H1-22 free cash flow ($3.5M), compared to Depreciation & amortization 43.3 43.9 -0.6 record H1-21 level of $72.6M: Changes in working capital* (95.2) (65

  17. Slide 17: FY 2022 Outlook

    CEQ) So ea - FY 2022 Outlook — o G

  18. Slide 18: FY 2022 Outlook

    FY 2022 GUIDANCE FY 2022 Outlook FY 2022 Assumptions FY 2022 Guidance Year-over-year ▪ Organic revenue growth +7 to +9%; no change from prior guidance Revenue Growth +2.5% to +4.5% Vs. prior +5% to +7% ▪ FX revenue headwind approx. -6%; vs. -3.5% prior ▪ Acquisitions revenue tailwind ~1.5%; no chang

  19. Slide 19: Appendix

    Appendix 19

  20. Slide 20: Q2 2022 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth

    APPENDIX Q2 2022 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth [$M] Q2 2022 Q2 2021 Revenue as of the prior comparable period 570.8 424.6 Non-GAAP components: Acquisitions and divestures 9.3 1.8 Organic 50.1 115.7 Currency (41.8) 28.7 Revenue as of the current period 588.4

  21. Slide 21: Q2 2022 GAAP Results Year-over-Year

    APPENDIX Q2 2022 GAAP Results Year-over-Year [$M, except EPS] Q2 2022 Q2 2021 Δ Total Revenues 588.4 570.8 +3.1% Gross Profit 298.2 280.6 +6.3% Margin (% of revenue) 50.7% 49.2% SG&A (152.2) (134.8) +12.9% (% of revenues) 25.9% 23.6% R&D (59.6) (55.8) +6.8% (% of revenues) 10.1% 9.8% Operating Incom

  22. Slide 22: Q2 2022 Reconciliation of GAAP and Non-GAAP Results Year-over-Year

    APPENDIX Q2 2022 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] Q2 2022 Q2 2021 GAAP Operating Income 73.9 85.6 Restructuring Costs 3.8 1.7 Acquisition-Related Costs 8.3 2.3 Purchased Intangible Amortization 9.3 9.0 Other Costs 2.4 0.2 TOTAL 23.8 13.2 Non-GAAP Operating

  23. Slide 23: H1 2022 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth

    APPENDIX H1 2022 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth [$M] H1 2022 H1 2021 Revenue as of the prior comparable period 1,125.5 848.6 Non-GAAP components: Acquisitions and divestures 15.1 5.0 Organic 108.3 216.4 Currency (65.5) 55.5 Revenue as of the current period 1

  24. Slide 24: H1 2022 GAAP Results Year-over-Year

    APPENDIX H1 2022 GAAP Results Year-over-Year [$M, except EPS] H1 2022 H1 2021 Δ Total Revenues 1,183.4 1,125.5 +5.1% Gross Profit 604.5 559.3 +8.1% Margin (% of revenue) 51.1% 49.7% SG&A (297.9) (266.6) +11.7% (% of revenues) 25.2% 23.7% R&D (116.2) (110.6) +5.1% (% of revenues) 9.8% 9.8% Operating

  25. Slide 25: H1 2022 Reconciliation of GAAP and Non-GAAP Results Year-over-Year

    APPENDIX H1 2022 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] H1 2022 H1 2021 GAAP Operating Income 170.4 174.7 Restructuring Costs 4.2 4.1 Acquisition-Related Costs 13.6 3.2 Purchased Intangible Amortization 18.6 18.0 Other Costs 6.7 1.0 TOTAL 43.1 26.3 Non-GAAP Opera

  26. Slide 26: Q2 2022 Cash Flow Year-over-Year

    NON-GAAP FINANCIAL PERFORMANCE Q2 2022 Cash Flow Year-over-Year [$ m] Q2 2022 Q2 2021 Δ Comments (year-over-year) GAAP Net Income 49.7 58.7 -9.0 Q2-22 free cash flow ($62.3M), compared to Depreciation & amortization 21.6 21.6 Flat ($0.7M) in Q2 2021: Changes in working capital* (58.5) (46.9) -11.6 ▪

  27. Slide 27: Balance Sheet

    APPENDIX Balance Sheet [$M, except EPS] Jun 30, 2022 Dec 31, 2021 Total Assets 3,384.8 3,650.0 Working Capital* 1,006.7 979.6 Goodwill, Intangibles, Net & Other Long-Term Assets 902.3 772.1 [$M, except EPS] Jun 30, 2022 Dec 31, 2021 Cash, Cash Equivalents & Short-term Investments 723.0 1,168.2 Finan

  28. Slide 28: Q2 2022 BSI and BEST GAAP Performance Year-over-Year

    APPENDIX Q2 2022 BSI and BEST GAAP Performance Year-over-Year [$M] Q2 2022 Q2 2021 Δ REVENUE Scientific Instruments (BSI) 532.3 517.1 +3% Organic Revenue Growth (%) +8.1% +27.8% Energy & Supercon Technologies (BEST) 59.2 56.6 +5% Corporate Eliminations (3.1) (2.9) Energy & Supercon Technologies (BES

  29. Slide 29: H1 2022 BSI and BEST GAAP Performance Year-over-Year

    APPENDIX H1 2022 BSI and BEST GAAP Performance Year-over-Year [$M] H1 2022 H1 2021 Δ REVENUE Scientific Instruments (BSI) 1,071.8 1,023.3 +5% Organic Revenue Growth (%) +8.8% +26.7% Energy & Supercon Technologies (BEST) 118.9 109.0 +9% Corporate Eliminations (7.3) (6.8) Energy & Supercon Technologie

  30. Slide 30: Trailing Twelve Months Return on Invested Capital

    APPENDIX Trailing Twelve Months Return on Invested Capital Trailing Twelve Trailing Twelve Months Ended Months Ended [$M, except EPS] June 30, 2022 June 30, 2021 Non-GAAP Operating Income $482.7 $437.0 Non-GAAP Income Tax Provision (133.4) (121.8) Non-GAAP Operating Income after Tax 349.3 315.2 Aver

  31. Slide 31: Innovation and Multiyear Transformation Delivering Shareholder Value

    TRANSFORMATION UPDATE Innovation and Multiyear Transformation Delivering Shareholder Value Accelerated Revenue Growth & Margin Expansion, With Top-Tier ROIC Revenue Growth Acceleration Significant non-GAAP Operating Non-GAAP EPS DD CAGR Margin expansion, ROIC >20% $2.10 $2.4B 28% ROIC $2.1B $2.0B $1

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Bruker — Q2 2022 Earnings Presentation on 6ix