Slide 1: Q2 2023 Earnings Presentation
BRUKER CORPORATION (NASDAQ: BRKR) Q2 2023 Earnings Presentation August 3, 2023 Frank H. Laukien, President & Chief Executive Officer Gerald Herman, Executive Vice President & Chief Financial Officer Justin Ward, Senior Director, Investor Relations & Corporate Development
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
Slide 3: Business Update
Q2 2023 Business Update 3
Slide 4: Q2 2023: Strong Revenue Growth, Solid EPS Growth
Q2 2023 BUSINESS UPDATE Q2 2023: Strong Revenue Growth, Solid EPS Growth Q2 2023 Performance; Year-over-Year Changes Q2 Financials Revenues [$M] ❖ Revenue increase of $93.5M, or +15.9% ▪ Organic growth of +13.5% 681.9 +15.9% 588.4 ▪ BSI up +13.0% and BEST up +18.4% organically ▪ Acquisitions add +1.
Slide 5: H1 2023: Strong Revenue Growth, Solid EPS Growth
H1 2023 BUSINESS UPDATE H1 2023: Strong Revenue Growth, Solid EPS Growth H1 2023 Performance; Year-over-Year Changes H1 Financials Revenues [$M] ❖ Revenue increased $183.8M, or +15.5% ▪ Organic growth of +15.6% 1,183.4 +15.5% 1,367.2 ▪ BSI up +15.7% and BEST up +14.1% organically ▪ Acquisitions add
Slide 6: Constant Currency H1 2023 Revenue Performance Year-over-Year
GROUP OVERVIEW Constant Currency H1 2023 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN up HSD, solid growth in academic/government, industrial and applied markets ▪ No GHz-class revenue in H1-23 revenue (vs. one in H1-22), with push-out into H2-23; now expect up to 3 GHz-class
Slide 7: Constant Currency H1 2023 Revenue Performance Year-over-Year
GROUP OVERVIEW Constant Currency H1 2023 Revenue Performance Year-over-Year(1) Bruker NANO Group ▪ NANO up low 20s range with strong revenue growth across end markets ▪ Nano Surfaces & Metrology strong deliveries to semicon market, academic and industrial ▪ Advanced X-Ray Systems grew high teens ▪ F
Slide 8: Unique Metrology Tools Serve Leading AI Chip R&D and Production
BRUKER NANO SURF ACES AN D M ETROLOG Y DIVISION Unique Metrology Tools Serve Leading AI Chip R&D and Production Approximately $75M of 2023 Revenue Driven by AI Trends – Will Keep Increasing Bruker Key Role in AI Chip Development and AI Fuels Growth in Various Chip Types Manufacturing CPU chips | for
Slide 9: Transformative Sensitivity for 4D-Proteomics: new timsTOF Ultra
4D PROTEOMICS Transformative Sensitivity for 4D-Proteomics: new timsTOF Ultra • Launched at ASMS 2023, the timsTOF Ultra raises the bar for sensitivity in unbiased proteomics with next-generation ion source and TIMS technology • Significant performance improvements for ultra-low sample amounts, incl
Slide 10: Financial Update
Q2 2023 Financial Update 10
Slide 11: Q2 2023 Non-GAAP Financial Performance
Q2 2023 YEAR-OVER-YEAR COMPARISON Q2 2023 Non-GAAP Financial Performance Comments (year-over-year) [$M, except EPS] Q2 2023 Q2 2022 Δ ▪ Reported revenue growth of +15.9% Revenues $681.9 $588.4 +15.9% ▪ Organic revenue growth of +13.5% driven by NANO and Operating Income $104.1 $97.7 +6.6% CALID grou
Slide 12: Q2 2023 Revenue Bridge
NON-GAAP FINANCIAL PERFORMANCE Q2 2023 Revenue Bridge Q2 2023 Revenue Performance Year-over-Year Q2 2023 Drivers (year-over-year) Organic Currency Portfolio Total ▪ Reported revenue up +15.9% +13.5% +0.5% +1.9% +15.9% ▪ Organic revenue up +13.5% Q2 2023 Revenue Bridge [$M] ✓ BSI up +13.0% organic +$
Slide 13: Q2 2023 Non-GAAP Results Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE Q2 2023 Non-GAAP Results Year-over-Year [$ m, except EPS] Q2 2023 Q2 2022 Δ Comments (year-over-year) Total Revenues 681.9 588.4 +15.9% ▪ Gross margin down -90 bps on unfavorable mix, Gross Profit 347.3 304.7 +14.0% Margin (% of revenues) 50.9% 51.8% -90 bps FX and inf
Slide 14: H1 2023 Revenue Bridge
NON-GAAP FINANCIAL PERFORMANCE H1 2023 Revenue Bridge H1 2023 Revenue Performance Year-over-Year H1 2023 Drivers (year-over-year) Organic Currency Portfolio Total ▪ Reported revenue up +15.5% +15.6% -2.1% +2.0% +15.5% ▪ Organic revenue up +15.6% H1 2023 Revenue Bridge [$M] ✓ BSI up +15.7% organic ✓
Slide 15: H1 2023 Non-GAAP Results Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE H1 2023 Non-GAAP Results Year-over-Year [$M, except EPS] H1 2023 H1 2022 Δ Comments (year-over-year) Total Revenues 1,367.2 1,183.4 +15.5% ▪ Gross margin flat on volume leverage and Gross Profit 713.2 618.0 +15.4% Margin (% of revenues) 52.2% 52.2% Flat pricing, offset
Slide 16: H1 2023 Cash Flow Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE H1 2023 Cash Flow Year-over-Year [$M] H1 2023 H1 2022 Δ Comments (year-over-year) GAAP Net Income 135.2 111.8 +23.4 ▪ Operating cash flow up ~$67M on higher net Depreciation & amortization 51.0 43.3 +7.7 income and lower working capital; Changes in working capital* (79
Slide 17: FY 2023 Outlook
CEQ) So ea - FY 2023 Outlook — o G
Slide 18: FY 2023 Outlook (as of August 3rd, 2023)
FY 2023 GUIDANCE FY 2023 Outlook (as of August 3rd, 2023) FY 2023 Non-GAAP Assumptions & Estimates (updated as of August 3, 2023) Updated FY 2023 Guidance 1 ▪ Organic revenue growth 9.5%-11.5% (from 9%-11%) ▪ Operating profit growth 7%-9% (from 8-10%) Revenue (in $B) $2.85 to $2.90 billion ▪ Operati
Slide 19: Appendix
Appendix 19
Slide 20: Q2 2023 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth
APPENDIX Q2 2023 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth [$M] Q2 2023 Q2 2022 Revenue as of the prior comparable period 588.4 570.8 Non-GAAP components: Acquisitions and divestures 11.0 9.3 Organic 79.7 50.1 Currency 2.8 (41.8) Revenue as of the current period 681.9
Slide 21: Q2 2023 GAAP Results Year-over-Year
APPENDIX Q2 2023 GAAP Results Year-over-Year [$M, except EPS] Q2 2023 Q2 2022 Δ Total Revenues 681.9 588.4 +15.9% Gross Profit 340.5 298.2 +14.2% Margin (% of revenue) 49.9% 50.7% SG&A (177.9) (152.2) +16.9% (% of revenues) 26.1% 25.9% R&D (71.0) (59.6) +19.1% (% of revenues) 10.4% 10.1% Operating I
Slide 22: Q2 2023 Reconciliation of GAAP and Non-GAAP Results Year-over-Year
APPENDIX Q2 2023 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] Q2 2023 Q2 2022 GAAP Operating Income 86.2 73.9 Restructuring Costs 0.4 3.8 Acquisition-Related Costs 3.3 8.3 Purchased Intangible Amortization 11.2 9.3 Other Costs 3.0 2.4 TOTAL 17.9 23.8 Non-GAAP Operating
Slide 23: H1 2023 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth
APPENDIX H1 2023 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth [$M] H1 2023 H1 2022 Revenue as of the prior comparable period 1,183.4 1,125.5 Non-GAAP components: Acquisitions and divestures 23.7 15.1 Organic 184.4 108.3 Currency (24.3) (65.5) Revenue as of the current per
Slide 24: H1 2023 GAAP Results Year-over-Year
APPENDIX H1 2023 GAAP Results Year-over-Year [$M, except EPS] H1 2023 H1 2022 Δ Total Revenues 1,367.2 1,183.4 +15.5% Gross Profit 700.2 604.5 +15.8% Margin (% of revenue) 51.2% 51.1% SG&A (340.6) (297.9) +14.3% (% of revenues) 24.9% 25.2% R&D (140.0) (116.2) +20.5% (% of revenues) 10.2% 9.8% Operat
Slide 25: H1 2023 Reconciliation of GAAP and Non-GAAP Results Year-over-Year
APPENDIX H1 2023 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M] H1 2023 H1 2022 GAAP Operating Income 208.9 170.4 Restructuring Costs 0.9 4.2 Acquisition-Related Costs 6.3 13.6 Purchased Intangible Amortization 21.9 18.6 Other Costs 5.5 6.7 TOTAL 34.6 43.1 Non-GAAP Operating Income
Slide 26: Q2 2023 Cash Flow Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE Q2 2023 Cash Flow Year-over-Year [$ m] Q2 2023 Q2 2022 Δ Comments (year-over-year) GAAP Net Income 57.8 49.7 +8.1 Operating Cash Flow up $57M on higher net Depreciation & amortization 25.9 21.6 +4.3 income, favorability in working capital, and Changes in working capita
Slide 27: Balance Sheet
APPENDIX Balance Sheet [$M] Jun 30, 2023 Dec 31, 2022 Total Assets 3,857.0 3,611.8 Working Capital* 1,176.6 1,094.4 Goodwill, Intangibles, Net & Other Long-Term Assets 1,151.0 1,011.6 [$M] Jun 30, 2023 Dec 31, 2022 Cash, Cash Equivalents & Short-term Investments 574.8 645.5 Financial Debt 1,244.9 1,
Slide 28: Q2 2023 BSI and BEST GAAP Performance Year-over-Year
APPENDIX Q2 2023 BSI and BEST GAAP Performance Year-over-Year [$M] Q2 2023 Q2 2022 Δ REVENUE Scientific Instruments (BSI) 614.3 532.3 +15% Organic Revenue Growth (%) +13.0% +8.1% Energy & Supercon Technologies (BEST) 72.7 59.2 +23% Corporate Eliminations (5.1) (3.1) Energy & Supercon Technologies (B
Slide 29: H1 2023 BSI and BEST GAAP Performance Year-over-Year
APPENDIX H1 2023 BSI and BEST GAAP Performance Year-over-Year [$M] H1 2023 H1 2022 Δ REVENUE Scientific Instruments (BSI) 1,240.9 1,071.8 +16% Organic Revenue Growth (%) +15.7% +8.8% Energy & Supercon Technologies (BEST) 134.9 118.9 +14% Corporate Eliminations (8.6) (7.3) Energy & Supercon Technolog
Slide 30: Trailing Twelve Months Return on Invested Capital
APPENDIX Trailing Twelve Months Return on Invested Capital Trailing Twelve Trailing Twelve Months Ended Months Ended [$M] June 30, 2023 June 30, 2022 Non-GAAP Operating Income 535.6 482.7 Non-GAAP Income Tax Provision (133.7) (133.4) Non-GAAP Operating Income after Tax 401.9 349.3 Average Total Inve
Slide 31: Q2 2023 EBITDA
APPENDIX Q2 2023 EBITDA [$M] Jun 30, 2023 Jun 30, 2022 Δ Non-GAAP Net Income* 74.0 66.9 +11% GAAP Interest Expense, Net 2.0 3.4 -41% Non-GAAP Income Tax Provision 25.2 26.3 -4% GAAP Depreciation Expense 14.5 13.0 +12% Amortization Expense** (0.2) 0.7 Total 41.5 43.4 -4% Non-GAAP EBITDA $115.5 $110.3
Slide 32: H1 2023 EBITDA
APPENDIX H1 2023 EBITDA [$M] Jun 30, 2023 Jun 30, 2022 Δ Non-GAAP Net Income* 169.1 141.5 +20% GAAP Interest Expense, Net 4.8 7.3 -34% Non-GAAP Income Tax Provision 62.1 62.8 -1% GAAP Depreciation Expense 28.8 25.2 +14% Amortization Expense** (0.3) 0.5 Total 95.4 95.8 Flat Non-GAAP EBITDA 264.5 237.
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