Bruker Corporation · NASDAQ:BRKR

Bruker — William Blair Growth Stock Conference 2014

19 slides from Bruker's conference presentation, Jun 11, 2014

  1. Slide 1: Bruker Corporation (NASDAQ: BRKR)

    Bruker Corporation (NASDAQ: BRKR) William Blair Growth Stock Conference June 11, 2014 Charles Wagner, EVP & CFO Innovation with Integrity

  2. 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

  3. Slide 3: Agenda

    Agenda 1 Company Overview 2 Innovation & Transformation 3 Restructuring, Financials & Investment Thesis © Bruker Corporation Innovation with Integrity 3

  4. Slide 4: Company Profile

    Company Profile Bruker: the leading provider of high-performance scientific KEY FIGURES instruments and solutions for life science, diagnostic and Founded in 1960 applied markets. ~$1.8B revenue ~6,400 employees ~80% of revenues outside Bruker Scientific Bruker Energy & Supercon of the US Instrument

  5. Slide 5: Our BSI Groups have distinct capabilities and products, and serve complementary markets

    Our 3 BSI Groups have distinct capabilities and products, and serve complementary markets Bruker Bruker Bruker Bruker BioSpin CALID MAT BEST 1. Nuclear Magnetic 1. Life-Science and 1. Atomic Force 1. LTS Superconductors Resonance (NMR) Applied Mass Microscopy (AFM) Spectrometry 2. HTS Superconductor

  6. Slide 6: Most of our revenues are from academic, government, industrial, pharma/biotech and diagnostics markets

    Most of our revenues are from academic, government, industrial, pharma/biotech and diagnostics markets Bruker Bruker Bruker Bruker BioSpin CALID MAT BEST MARKETS SERVED MARKETS SERVED MARKETS SERVED MARKETS SERVED 1. Academic & Medical 1. Academic/government 1. Industrial research and 1. Healthcare

  7. Slide 7: Agenda

    Agenda 1 Company Overview 2 Innovation & Transformation 3 Restructuring, Financials & Investment Thesis © Bruker Corporation Innovation with Integrity 7

  8. Slide 8: Product Innovation: MALDI Biotyper for Microbiology ID

    Product Innovation: MALDI Biotyper for Microbiology ID INDUSTRY ISSUE: The identification (ID) of microbial infections can take several hours or days using traditional methods BRUKER INNOVATION: VALUE CREATED: • Faster time-to-result (TTR) MALDI Biotyper: a benchtop MALDI-TOF • More differentiated i

  9. Slide 9: Product Innovation: Ascend Aeon NMR magnets

    Product Innovation: Ascend Aeon NMR magnets INDUSTRY ISSUE: Diminishing supply and availability of helium has led to increasing costs to maintain NMR magnets BRUKER INNOVATION: VALUE CREATED: • Independence from Ascend Aeon magnets: Helium supply situation incorporates advanced refrigeration design

  10. Slide 10: Transformation: 2013 was first year of a multi-year effort to transform Bruker

    Transformation: 2013 was first year of a multi-year effort to transform Bruker and to reset its foundation 2012 2013 2014 2015 2016 2017 New Leadership & Organization • Simplified organizational structure • New leaders & incentive structures • Globalized approach to business Incremental Profit Impro

  11. Slide 11: Transformation: We have made significant progress in 2013 and will continue in 2014-2015

    Transformation: We have made significant progress in 2013 and will continue in 2014-2015 Organization/People Processes/Systems Restructuring/Efficiency • New CFO and three new • Transitioning to global • Launched restructuring Group presidents business model, from initiatives in all businesses count

  12. Slide 12: Agenda

    Agenda 1 Company Overview 2 Innovation & Transformation 3 Restructuring, Financials & Investment Thesis © Bruker Corporation Innovation with Integrity 12

  13. Slide 13: We took actions in 2013 that are expected to drive meaningful cost savings in 2014

    We took actions in 2013 that are expected to drive meaningful cost savings in 2014 Facility Headcount Outsourcing Divestitures Closures Reductions $15–20m of expected annualized savings in 2014 © Bruker Corporation Innovation with Integrity 13

  14. Slide 14: Solid start to the year with operating margin expansion and growth from all three BSI Groups

    Solid start to the year with operating margin expansion and growth from all three BSI Groups Q1 2014 Performance Q1 Financials  Organic revenue growth of ~7% y-o-y Revenues [$ m] +8% 1. Double-digit growth in CALID, driven by Optics and Life Science divisions; easy comparison to weak Q1 2013 424 2.

  15. Slide 15: Q1 2014 Non-GAAP Results

    Q1 2014 Non-GAAP Results [$ m] Q1 2014 Q1 2013 Δ COMMENTS Total Revenues 423.7 393.4 8%  Gross margin decline of Gross Profit 187.2 179.5 4% Margin (% of sales) 44.2% 45.6% 140 bps primarily due to currency impact SG&A -109.1 -106.5 2% (% of revenues) 25.7% 27.1%  Y-o-y impact of Yen devaluation l

  16. Slide 16: Q1 2014 Cash Flow Statement

    Q1 2014 Cash Flow Statement [$ m] Q1 2014 Q1 2013 Δ COMMENTS Net Income 10.0 5.7 4.3  Inventory DIO improved by 30 days vs. Q1 2013 Depreciation & amortization 15.2 15.2 0.0 – Still room for Changes in working capital* 17.0 -20.5 37.5 improvement Other -23.7 -18.6 -5.1  Cash flow benefit from Oper

  17. Slide 17: FY 2014 Guidance

    FY 2014 Guidance Bruker FY 2014 Guidance ASSUMPTIONS  No change to full-year Revenue Growth (reported) 3% to 4% guidance  Revenue growth of all three Restructuring Costs ~$15-$20M BSI Groups similar to total company growth Non-GAAP Tax Rate ~29%-30%  Less than $50M of capex  Q2-14 financial perf

  18. Slide 18: Why Invest in Bruker?

    Why Invest in Bruker? A Strong Foundation • Premier brand for high-performance life-science, diagnostics and analytical scientific instruments • Strong innovation and expansion track record, taking concrete actions to improve profitability & cash flow • Excellent customer relationships and collabora

  19. Slide 19: www.bruker.com

    www.bruker.com © Bruker Corporation 19

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