Bruker Corporation · NASDAQ:BRKR

Bruker — Q3 2014 Earnings Presentation

25 slides from Bruker's earnings presentation, Nov 6, 2014

1. Slide 1: Q3 2014 Earnings Presentation

   Bruker Corporation (NASDAQ: BRKR) Q3 2014 Earnings Presentation Frank Laukien, President & CEO Charles Wagner, EVP & CFO November 6, 2014 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: Q3 & YTD 2014 Business Update

   Q3 & YTD 2014 Business Update © Bruker Corporation 3

4. Slide 4: Q3 2014 revenue and profitability down year-over-year

   Q3 2014 revenue and profitability down year-over-year Q3 2014 Performance Q3-14 Financials  Revenues decline 4% y-o-y Revenues [$ m] -4% 1. BioSpin and BMAT Group revenues decline, due to weak year-to-date orders 2. CALID revenue decline driven by CAM 439 restructuring 420 3. Revenue declines acros

5. Slide 5: Q3-14 YTD performance adversely affected by demand, CAM restructuring, and currency

   Q3-14 YTD performance adversely affected by demand, CAM restructuring, and currency Q3-14 YTD Performance Q3-14 YTD Financials  Revenue growth of 1% y-o-y 1. BioSpin revenue growth of 2%, led by Revenues [$ B] +1% strength in Pre-Clinical Imaging division 1.30 1.29 2. BMAT revenue decline of 1% dri

6. Slide 6: Group Overview: Q3 2014 Performance & Outlook

   GROUP OVERVIEW: Q3 2014 Performance & Outlook Bruker BioSpin Group  Revenue decline in NMR partially offset by growth in Pre-Clinical Imaging Division  Good growth in the Americas offset by declines in Europe & Asia  After generating above-market growth from 2010-2013, NMR demand has slowed; YTD

7. Slide 7: Group Overview: Q3 2014 Performance & Outlook (BMAT and BEST)

   GROUP OVERVIEW: Q3 2014 Performance & Outlook Bruker MAT Group  BMAT Group revenue declines high-single digits  Revenue declines across 3 of 4 Divisions  Semiconductor & data storage demand remains weak  Steep decline in Asia offsets growth in Europe & Americas  Demand sluggish from Minerals &

8. Slide 8: Commitment to transforming Bruker for better performance

   Commitment to transforming Bruker for better performance • Continue existing transformation to drive towards operational excellence: redesign-to-cost; outsourcing; procurement initiatives; restructuring, etc. • Committed to making investments that drive innovation and enable entry into new growth ma

9. Slide 9: Q3 2014 Financial Update

   Q3 2014 Financial Update © Bruker Corporation 9

10. Slide 10: Non-GAAP Financial Performance: Q3 2014 Overview

    NON-GAAP FINANCIAL PERFORMANCE: Q3 2014 Overview [$ m, except EPS] Q3 2014 Q3 2013 Δ COMMENTS Revenues 419.8 439.0 -4%  Lower revenue reflects weak YTD bookings and a Operating Income 35.9 47.3 -24% $10M revenue decline in CAM Division Margin (%) 8.6% 10.8%  Profitability decline due to EPS $0.14

11. Slide 11: Q3 2014 revenue bridge

    Q3 2014 revenue bridge Q3 2014 DRIVERS Q3 2014 Revenue for Bruker Corp.  Organic revenue decline Acquisitions & of $21.2M, as revenue in Organic Currency Divestitures Total all three Groups declines -4.8% -0.4% 0.8% -4.4%  Strengthening dollar in September drove the slight revenue headwind; bigger

12. Slide 12: Q3 2014 Non-GAAP Results

    Q3 2014 Non-GAAP Results [$ m] Q3 2014 Q3 2013 Δ COMMENTS Total Revenues 419.8 439.0 -4%  Gross margins are down Gross Profit 185.5 198.2 -6% primarily due to lower Margin (% of sales) 44.2% 45.1% volumes and negative mix SG&A -107.5 -105.4 2% (% of revenues) 25.6% 24.0%  Operating expenses remain

13. Slide 13: Q3 2014 Reconciliation of GAAP and Non-GAAP Results

    Q3 2014 Reconciliation of GAAP and Non-GAAP Results [$ m] Q3 2014 Q3 2013 GAAP Operating Income 4.9 31.5 Restructuring Costs 16.2 8.6 Acquisition Related Costs 1.4 1.3 Purchased Intangible Amortization 5.1 5.1 Other Costs 8.3 0.8 TOTAL 31.0 15.8 Non-GAAP Operating Income 35.9 47.3 Non-GAAP Net Inter

14. Slide 14: Q3-14 YTD revenue bridge

    Q3-14 YTD revenue bridge Q3-14 YTD DRIVERS Q3-14 YTD Revenue for Bruker Corp.  Growth in BioSpin offset Acquisitions & by declines in CALID and Organic Currency Divestitures Total BMAT on YTD basis -0.4% 0.7% 0.8% 1.1%  Stronger Euro versus dollar on YTD basis drives positive currency contribution

15. Slide 15: Q3-14 YTD 2014 Non-GAAP Results

    Q3-14 YTD 2014 Non-GAAP Results [$ m] Q3-14 YTD Q3-13 YTD Δ COMMENTS Total Revenues 1,300.9 1,287.3 1%  Gross margins are down primarily due to changes Gross Profit 584.5 584.2 NM in foreign exchange rates Margin (% of sales) 44.9% 45.4% SG&A -331.2 -318.6 4%  Operating margins are (% of revenues)

16. Slide 16: Q3-14 YTD Reconciliation of GAAP to Non-GAAP Results

    Q3-14 YTD Reconciliation of GAAP to Non-GAAP Results [$ m] Q3-14 YTD Q3-13 YTD GAAP Operating Income 60.9 87.2 Restructuring Costs 29.3 13.6 Acquisition Related Costs 3.0 2.2 Purchased Intangible Amortization 15.1 15.3 Other Costs 12.4 5.9 TOTAL 59.8 37.0 Non-GAAP Operating Income 120.7 124.2 Non-GA

17. Slide 17: Q3-14 YTD Cash Flow Statement

    Q3-14 YTD Cash Flow Statement [$ m] Q3-14 YTD Q3-13 YTD Δ COMMENTS Net Income 33.1 45.9 -12.8  Cash conversion cycle improves by 29 days compared to Q3-13 Depreciation & amortization 47.6 45.4 2.2 – DIO: 230 Changes in working capital* 2.8 -32.6 35.4 – DSO: 60 Other -38.5 -45.1 6.6 – DPO: 48 – CCC:

18. Slide 18: 2014 Guidance

    2014 Guidance © Bruker Corporation 18

19. Slide 19: Bruker FY 2014 Guidance

    Bruker FY 2014 Guidance Bruker’s revised FY 2014 Guidance ASSUMPTIONS  FX changes reduce Q4-14 Revenues (reported) $1.81 - $1.84 billion revenue by 4% y-o-y  Excluding currency impact, Q4-14 revenue flat or Non-GAAP EPS $0.72 to $0.78 declining y-o-y due to CAM restructuring and YTD demand weaknes

20. Slide 20: Appendix

    Appendix © Bruker Corporation 20

21. Slide 21: Q3 2014 GAAP Results

    Q3 2014 GAAP Results [$ m] Q3 2014 Q3 2013 Δ Total Revenues 419.8 439.0 -4% Gross Profit 167.3 193.2 -13% Margin (% of sales) 39.9% 44.0% SG&A -108.0 -105.7 2% (% of revenues) 25.7% 24.1% R&D -42.1 -45.5 -7% (% of revenues) 10.0% 10.4% Operating Income 4.9 31.5 -84% (% of revenues) 1.2% 7.2% Net Inc

22. Slide 22: Q3-14 YTD GAAP Results

    Q3-14 YTD GAAP Results [$ m] Q3-14 YTD Q3-13 YTD Δ Total Revenues 1,300.9 1,287.3 1% Gross Profit 547.5 569.3 -4% Margin (% of sales) 42.1% 44.2% SG&A -332.5 -319.6 4% (% of revenues) 25.6% 24.8% R&D -132.6 -141.4 -6% (% of revenues) 10.2% 11.0% Operating Income 60.9 87.2 -30% (% of revenues) 4.7% 6

23. Slide 23: Balance sheet

    Balance sheet [$ m] Sep 30, 2014 Dec 31, 2013 Δ Total Assets 1,910.6 1,988.3 -4% Working Capital* 737.2 822.6 -10% Intangible & Other Assets 245.9 256.9 -4% [$ m] Sep 30, 2014 Dec 31, 2013 Δ Cash, Cash Equivalents & Short-term 442.3 438.7 1% investments Financial Debt 355.2 355.0 NM Net Cash 87.1 83

24. Slide 24: Q3 2014 Cash Flow Statement

    Q3 2014 Cash Flow Statement [$ m] Q3 2014 Q3 2013 Δ COMMENTS Net Income 6.3 16.9 -10.6  Lower profit, higher working capital are the primary drivers of y-o-y Depreciation & amortization 17.6 15.2 2.4 difference in free cash flow Changes in working capital* -16.0 9.0 -25.0 Other 5.6 -2.6 8.2 Operati

25. Slide 25: BSI and BEST GAAP Performance

    Q3 SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q3 2014 Q3 2013 Δ REVENUE Scientific Instruments (BSI) 383.4 410.6 -7% Organic Revenue Growth (%) -7.1% 0.6% Energy & Supercon Technologies (BEST) 40.0 32.5 23% Organic Revenue Growth (%) 22.6% -27.1% Corporate Eliminations & Other -3.6 -4.1 To

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