Bruker Corporation · NASDAQ:BRKR

Bruker — Q1 2015 Earnings Presentation

20 slides from Bruker's earnings presentation, May 6, 2015

1. Slide 1: Bruker Corporation Q1 2015 Earnings Presentation

   Bruker Corporation (NASDAQ: BRKR) Q1 2015 Earnings Presentation Frank Laukien, President & CEO Charles Wagner, EVP & CFO May 6, 2015 Joshua Young, VP, Investor Relations Innovation with Integrity

2. Slide 2: Safe Harbor & Reg. G Statement

   Bruker Corporation Safe Harbor & Reg. G 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 he

3. Slide 3: Q1 2015 Business Update

   Q1 2015 Business Update © Bruker Corporation 3

4. Slide 4: Restructuring & operational initiatives drive higher profit and free cash flow, despite lower revenue

   Restructuring & operational initiatives drive higher profit and free cash flow, despite lower revenue Q1 2015 Performance Q1-15 Financials  Revenues decline $70m, or -17% y-o-y Revenues [$ m] -17% − Changes in foreign exchange lower revenues by $47M, or -11% y-o-y 424 − CAM divestitures result in $

5. Slide 5: Q1 2015 Performance: BioSpin and CALID Groups

   GROUP OVERVIEW: Q1 2015 Performance Bruker BIOSPIN Group  Weak NMR order bookings in 2014 drive revenue decline in Q1-15  NMR new order bookings improving in Q1-15  New pricing and commercial practices put in place during Q1-15  Negotiations with workers councils to finalize restructuring plans

6. Slide 6: Q1 2015 Performance: NANO Group and BEST Segment

   GROUP OVERVIEW: Q1 2015 Performance Bruker NANO Group  Low single-digit organic revenue growth driven by solid Q1-15 for the AXS Division  Group achieves higher profitability y-o-y due to 2013-2014 restructuring, new products and continued expense controls  AXS Division grows revenue in all produ

7. Slide 7: Bruker 2015 Priorities

   Bruker 2015 Priorities Continue transformation of leadership, management processes, and systems Execute BIOSPIN rightsizing and factory consolidation Accelerate further outsourcing of high- level assemblies in CALID and NANO Drive profitable growth initiative • New high-performance products • New hi

8. Slide 8: Progress with Profitable Growth Initiative

   Progress with Profitable Growth Initiative • Next-generation Explosives Trace Detectors (ETD) qualified under new European passenger and cargo requirements; major contract win in Germany; significant opportunity; • Next-generation GHz NMR technology launched for molecular biology and pathogenesis re

9. Slide 9: Q1 2015 Financial Update

   Q1 2015 Financial Update © Bruker Corporation 9

10. Slide 10: Q1 2015 Overview: Non-GAAP Financial Performance

    NON-GAAP FINANCIAL PERFORMANCE: Q1 2015 Overview [$ m, except EPS] Q1 2015 Q1 2014 Δ COMMENTS Revenues 353.5 423.7 -17%  Non-GAAP operating margins increase y-o-y due to CAM Operating Income 35.8 32.1 12% divestitures and operational improvement initiatives Margin (%) 10.1% 7.6%  Free cash flow in

11. Slide 11: Q1 2015 Revenue Bridge

    Q1 2015 revenue bridge FY 2015 DRIVERS Q1 2015 Revenue for Bruker Corp.  Organic revenue decline Acquisitions & of -3.0% Organic Currency Divestitures Total  Retained CAM products -3.0% -11.0% -2.6% -16.6% included in organic growth calculation, divested assets excluded  Weaker Euro drove Q1 2015

12. Slide 12: Q1 2015 Non-GAAP Results

    Q1 2015 Non-GAAP Results [$ m, except EPS] Q1 2015 Q1 2014 Δ COMMENTS Total Revenues 353.5 423.7 -17%  FX reduces revenue by Gross Profit 167.1 187.2 -11% -$47M; Margin (% of revenues) 47.3% 44.2%  Gross profit margin SG&A -94.1 -109.1 -14% improvement driven by (% of revenues) 26.6% 25.7% prior p

13. Slide 13: Reconciliation of GAAP and Non-GAAP Results

    Q1 2015 Reconciliation of GAAP and Non-GAAP Results [$ m, except EPS] Q1 2015 Q1 2014 GAAP Operating Income 15.2 20.6 Restructuring Costs 3.3 2.4 Acquisition-Related Costs 0.2 1.1 Purchased Intangible Amortization 5.2 5.2 Other Costs 11.9 2.8 TOTAL 20.6 11.5 Non-GAAP Operating Income 35.8 32.1 Non-G

14. Slide 14: Q1 2015 Cash Flow Statement

    Q1 2015 Cash Flow Statement [$ m] Q1 2015 Q1 2014 Δ COMMENTS Net Income 6.9 10.0 -3.1  Seventh straight quarter of positive free cash flow for Bruker Depreciation & amortization 13.5 15.2 -1.7  Working capital efficiency Changes in working capital* 30.5 17.0 13.5 continues to improve, and capex re

15. Slide 15: 2015 Outlook

    2015 Outlook © Bruker Corporation 15

16. Slide 16: Bruker FY 2015 Outlook

    Bruker FY 2015 Outlook FY 2015 Financial Outlook 2015 ASSUMPTIONS  Changes in currency Revenues (organic) Approximately +1% y-o-y reduce revenues by 10%-11%, with biggest impact in Q1-Q3 Non-GAAP Operating Margin >100 bps y-o-y  CAM related revenues decrease by $50M in 2015 Non-GAAP EPS Approximat

17. Slide 17: Appendix

    Appendix © Bruker Corporation 17

18. Slide 18: Q1 2015 GAAP Results

    Q1 2015 GAAP Results [$ m, except EPS] Q1 2015 Q1 2014 Δ Total Revenues 353.5 423.7 -17% Gross Profit 160.2 179.7 -11% Margin (% of sales) 45.3% 42.4% SG&A -94.6 -109.5 -14% (% of revenues) 26.8% 25.8% R&D -37.2 -46.0 -19% (% of revenues) 10.5% 10.9% Operating Income 15.2 20.6 -26% (% of revenues) 4

19. Slide 19: Balance sheet

    Balance sheet [$ m] Mar 31, 2015 Dec 31, 2014 Δ Total Assets 1,772.7 1,864.8 -5% Working Capital* 614.4 694.6 -12% Intangibles, net & Other Long-Term 239.2 248.6 -4% Assets [$ m] Mar 31, 2015 Dec 31, 2014 Δ Cash, Cash Equivalents & Short-term 492.3 497.5 -1% Investments Financial Debt 354.6 355.0 NM

20. Slide 20: BSI and BEST GAAP Performance

    Q1 SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q1 2015 Q1 2014 Δ REVENUE Scientific Instruments (BSI) 327.5 393.9 -17% Organic Revenue Growth (%) -3.6% 6.6% Energy & Supercon Technologies (BEST) 27.5 34.8 -21% Organic Revenue Growth (%) -4.1% 7.4% Corporate Eliminations -1.5 -5.0 Total Reve

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