Bruker Corporation · NASDAQ:BRKR
Bruker — William Blair Growth Stock Conference 2016
26 slides from Bruker's conference presentation, Jun 14, 2016
Slide 1: Bruker drives profitable growth by enabling breakthrough discoveries
Bruker drives profitable growth by enabling breakthrough discoveries & development of new applications that improve the quality of human life © 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 as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are
Slide 3: Key Messages in 2016
Key Messages in 2016 1 Bruker is a differentiated leader in attractive life science and diagnostics tools markets, and our brand stands for innovation 2 We focus on profitable growth in four strategic growth areas 3 We will drive margin expansion and cash flow as we transition from Transformation to
Slide 4: Agenda
Agenda 1. Company Overview 2. Profitable Growth Strategy 3. From Transformation to Operational Excellence 4. Financial Overview © Bruker Corporation 4
Slide 5: Bruker's instruments enable customers to explore life and materials
Bruker’s high-performance scientific instruments and high-value analytical and diagnostic solutions enable our customers to explore life and materials at … Microscopic Small Molecule and Cellular and and Nano-Scales Protein Levels Sub-Cellular Levels © Bruker Corporation 5
Slide 6: Bruker overview
Bruker overview: Percentage of revenue: • FY2015 revenue ~$1.62 billion • 9%-10% R&D investment Europe • ~75% of revenues from scientific and diagnostic instrumentation 41% • ~6,000 employees worldwide • Going from Transformation to Operational Excellence phase • Stable and profitable growth 26% ori
Slide 7: Bruker is organized in three key Groups
Bruker is organized in three key Groups: Bruker BioSpin Group Bruker CALID Group Bruker NANO Group - NMR/EPR for Research & Pharma - Mass Spectrometry for - Atomic Force Microscopy - Applied, Industrial & Clinical MR Proteomics & Metabolomics - Fluorescence Microscopy for - Preclinical Imaging A
Slide 8: Bruker serves large markets & a global customer base
Bruker serves large markets & a global customer base Key Markets Largest Customer Segments Pre-Clinical Other Academic & Government Imaging 10% Nuclear Magnetic 7% Resonance 25% Industrial Diagnostics 7% Pharma/Biopharmaceutical Optical Spectroscopy 10% Mass Spectrometry Diagnostic Labs/Hospitals At
Slide 9: Leading market positions for more than 60% of product portfolio
Bruker has leading market positions for more than 60% of our product portfolio #1 or #2 market position for: NMR/EPR & Preclinical MALDI ID in Atomic Force FT-IR/NIR Metabolomics Imaging & Microbiology Microscopy X-Ray Diffraction MALDI Imaging X-ray Metrology © Bruker Corporation 9
Slide 10: Agenda
Agenda 1. Company Overview 2. Profitable Growth Strategy 3. From Transformation to Operational Excellence 4. Financial Overview © Bruker Corporation 10
Slide 11: Investing in four strategic areas
We are investing in four strategic areas that have attractive growth and defensible, high-margin opportunities Life Science Nano-Analysis, Molecular Microscopy & Research Materials Research Applied Clinical Research, Markets & Microbiology & Pharma Diagnostics © Bruker Corporation 11
Slide 12: Life Science Molecular Research
Life Science Molecular Research EXAMPLE: Intrinsically Disordered Proteins (IDPs) • IDPs turn out to be prevalent in nature, and play many key roles in molecular and cell biology, but are difficult to analyze (www.darkproteome.org) • IDPs are abundant in cancer, neurodegenerative diseases, CVD/diabe
Slide 13: World's first shielded Aeon 1 GHz System installed
ENC 2016 ANNOUNCEMENT: World's first shielded Aeon 1 GHz System installed Aeon 1 GHz at Research Center for Bio-Macromolecules at University of Bayreuth GHz magnet technology, new NMR probes and methods enable novel studies of IDPs, larger protein structures and of complete membrane proteins Act
Slide 14: Applied Markets & Pharma
Applied Markets & Pharma EXAMPLE: Food/Beverage Safety & Authenticity • Bruker NMR, MS and IR/NIR instruments are critical to ensuring the quality, authenticity and safety of a variety of foods we eat and products we use • For example, high-value honey and high-end wines are subject to mislabeling a
Slide 15: Nano-Analysis, Microscopy & Materials Research
Nano-Analysis, Microscopy & Materials Research EXAMPLE: Next-Gen Semiconductor Metrology • Mobility, cloud computing and big data demand ever smaller and more powerful computer chips • Chip & memory makers require next-gen nano- metrology to ensure product yield and quality • Bruker next-gen AFM and
Slide 16: Clinical Research, Microbiology & Diagnostics
Clinical Research, Microbiology & Diagnostics EXAMPLE: MALDI Biotyper & TissueTyper: • Bruker has pioneered the MALDI Biotyper to ID bacteria and yeasts more quickly and accurately • Time-to-Result and expansive ID libraries are of great clinical and economic value in microbiology • Bruker has launc
Slide 17: Agenda
Agenda 1. Company Overview 2. Profitable Growth Strategy 3. From Transformation to Operational Excellence 4. Financial Overview © Bruker Corporation 17
Slide 18: Key changes made during 3-year Transformation
During our 3-year Transformation we made key changes to our organization, systems & commercial capabilities Organization & Systems Commercial -Reorganized; new leaders -Applications-based marketing -Clear performance metrics & incentives -Reorganization of sales forces -Integrated management process
Slide 19: Bruker will now focus on Operational Excellence & Lean
After 3 years of Transformation and Restructuring, Bruker will now focus on Operational Excellence & Lean 2013 2014 2015 2016 2017 2018 Outsourcing Bruker BioSpin Bruker’s next Phase: Rightsizing Outsourcing Operational Excellence Bruker NANO • Lean manufacturing Rightsizing & Footprint Consolidatio
Slide 20: Agenda
Agenda 1. Company Overview 2. Profitable Growth Strategy 3. From Transformation to Operational Excellence 4. Financial Overview © Bruker Corporation 20
Slide 21: Improvements in profitability and free cash flow in FY 2015
We delivered solid improvements in our profitability and free cash flow in FY 2015 . . . . Non-GAAP Non-GAAP Non-GAAP Free Cash Flow Gross Margin Operating Margin EPS 13.3% $0.89 $195M 46.2% $0.75 44.7% 10.2% $80M +150 bps +310 bps +19% +$115M FY-14 FY-15 © Bruker Corporation 21
Slide 22: Momentum continued in Q1-16
. . . and our momentum continued in Q1-16 with good organic revenue growth and margin expansion Q1-2016 Performance Q1 Financials Revenues [$ m] +6% Revenue growth of $22M, or +6.2% y-o-y − FX headwinds lower revenue -0.9% y-o-y 353 375 − Jordan Valley acquisition adds +1.5% y-o-y Organic revenu
Slide 23: Q1 2016 Non-GAAP Results
Q1 2016 Non-GAAP Results [$ m, except EPS] Q1 2016 Q1 2015 Δ COMMENTS Total Revenues 375.4 353.5 +6% Gross margin: increase in BioSpin Gross Profit 175.4 167.1 +5% volume, mix, price, and Margin (% of revenues) 46.7% 47.3% restructuring effects; offset by SG&A -92.0 -94.1 -2% lower NANO volume and
Slide 24: FY-2016 Guidance - Unchanged
FY-2016 Guidance - Unchanged FY-2016 Guidance 2016 ASSUMPTIONS Organic Revenue Growth Approximately +3% FY 2016 tax rate: 25%-28% Fully diluted share count: Non-GAAP Operating Margin Approximately +100 bps 163M-165M shares Expansion y-o-y Capex: ~$50M Non-GAAP EPS $0.97 - $1.02 Current curre
Slide 25: Key Messages in 2016
Key Messages in 2016 1 Bruker is a differentiated leader in attractive life science and diagnostics tools markets, and our brand stands for innovation 2 We focus on profitable growth in four strategic growth areas 3 We will drive margin expansion and cash flow as we transition from Transformation to
Slide 26: www.bruker.com
www.bruker.com © Bruker Corporation 26