Bruker Corporation · NASDAQ:BRKR
Bruker — 30th Annual J.P. Morgan Healthcare Conference (January 2012)
27 slides from Bruker's conference presentation, Jan 9, 2012
Slide 1: 30th Annual J.P. Morgan Healthcare Conference
Bruker Corporation (NASDAQ: BRKR) 30th Annual J.P. Morgan Healthcare Conference January 9, 2012 Stacey Desrochers: Treasurer & Director of Investor Relations Collin D‘Silva: President, Bruker Chemical & Applied Markets (CAM) Division Mark Munch, Ph.D.: President, Bruker Nano Surfaces (BNS) Division
Slide 2: Safe Harbor Statement
2 © Copyright 2012 Bruker Corporation. 2 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
Slide 3: Bruker Overview: Core Competencies and Differentiators
3 © Copyright 2012 Bruker Corporation. Financial Goals: Fast Profitable Growth, High RoIC & Low Leverage High-Performance Scientific Instruments For Diverse Markets Premier Brand with Leading Share in Key Markets Operational Excellence Initiative On-Going Focus on Products, Customer Collaborations a
Slide 4: Global Company with Strong Secular Tailwinds in Attractive, Diversified Markets
4 © Copyright 2012 Bruker Corporation. Bruker Overview Global Company with Strong Secular Tailwinds in Attractive, Diversified Markets Other R&D and Production Sites Sales, Applications & Service Offices US and European (DE, CH, FR, NL) Major R&D and Production Sites Headquarters Key Markets: Life S
Slide 5: Overview Business Segments: Bruker Scientific Instruments (BSI)
Bruker Overview Business Segments Bruker Scientific Instruments (BSI) © Copyright 2012 Bruker Corporation. 5 TAM Source: BCC Life Science Tools Market Research Report 2011 Life-Science Tools, Analytical Instruments and MDx Total Addressable Markets (TAM): ~$47 billion Bruker (BSI) Served Addressable
Slide 6: Research and Development Investment: Relentless Product Focus
6 © Copyright 2012 Bruker Corporation. Research and Development Investment Relentless Product Focus Product innovations drive fast growth INNOVATION WITH INTEGRITY Bruker Product Introductions (as of 9/30/11) $177.4M $141.4M $126.4M $133.8M $110.8M $102.6M 12.1% 10.7% 12.1% 11.3% 10.8% 11.1% 2006 20
Slide 7: Solid Balance Sheet metrics
7 © Copyright 2012 Bruker Corporation. Bruker Corporation Solid Balance Sheet metrics Minimal goodwill and intangible assets INNOVATION WITH INTEGRITY Intangible assets ratio is defined as goodwill and other intangibles as a percentage of total assets. Tangible book value (in $M) is calculated as sh
Slide 8: Scientific Instruments (BSI) Segment Financial Highlights
Bruker Scientific Instruments (BSI) Segment Financial Highlights (in $M, except EPS; LTM as of 9/30/11) Solid BSI Revenue and EPS Growth © Copyright 2012 Bruker Corporation. INNOVATION WITH INTEGRITY BSI Adjusted EPS (Diluted) BSI Adjusted Operating Income BSI RoIC (adj. NOPAT) 15.4% 12.2% 13.4% 15.
Slide 9: Q3YTD 2011 Financial Achievements
9 © Copyright 2012 Bruker Corporation. Bruker Corporation as of September 30, 2011 Q3YTD 2011 Financial Achievements Bruker Corp. Q3YTD FY11 Q3YTD FY10 Change Revenue: $1,177M $889M +32% (FX-adj. +24%) Adjusted EPS: $0.56 $0.48 +17% BSI Segment Q3YTD FY11 Q3YTD FY10 Change Revenue: $1,108M $836M +33
Slide 10: Bruker Corporation Financial Goals
10 © Copyright 2012 Bruker Corporation. Bruker Corporation Bruker BioSpin Bruker MAT Bruker Scientific Instruments Segment (BSI) Bruker Energy & Supercon Technologies (BEST) Bruker Daltonics Bruker Optics Q4-2011 and FY-2011 Revenue Estimates (preliminary & unaudited) Q42011E Q42010A FY2011E FY2010A
Slide 11: Bruker Chemical and Applied Markets (CAM) Division
© Copyright 2012 Bruker Corporation 11 Expanding Applied Markets Served by CAM (>$2B p.a.) Food Testing (pesticides, additives, packaging) Energy (biofuels, petrochemical, natural gas) Environmental Testing (air, water, soil) CAM Core Technologies and Products Lab GC and GC Analyzers GC-Single Quad
Slide 12: CAM Division Core Competency: Differentiated Products & Services in Specific Markets
12 Reinvest in R&D and innovation in legacy products Add new product lines Leverage existing distribution infrastructure and customer base Expand distribution capabilities in emerging markets Improve & invest in marketing, manufacturing, and logistics Invest in proprietary consumables GC-MS and ICP-
Slide 13: CAM Division Core Competency: GC Triple Quadrupole Mass Spectrometry
Bruker CAM Division Core Competency GC Triple Quadrupole (QQQ) Mass Spectrometry GC-QQQ is the fastest growing product segment in GC-MS Market Drivers: Globalization of food supply Regulation-driven markets SANCO guidelines (OECD), Japanese Agricultural Standards Act (JAS), MHLW positive list, ANVIS
Slide 14: CAM Core Competency: Lab GC, GC Analyzers, and Enterprise Software
14 Enterprise Software Compass CDS Unique “Match-Compare” software Industry Leading Application Specific GC Analyzers Natural Gas Analysis System A, B or C Low Level Oxygenates Analyzer Refinery Gas Analyzer, Standard and Rapid Light Hydrocarbon Analyzer CO/CO2-Analyzer Gasohol, for petrol acc, to A
Slide 15: CAM Division GC-MS Market Inflection Points
15 © Copyright 2012 Bruker Corporation Lab GC (FID/ECD/PFPD) Price Gap Convergence: Traditional GC detectors being replaced by Single Quad MS. Benefit: Higher Specificity Technology Gap Convergence: Single Quad MS methods being replaced by Triple Quad MS. Benefit: Higher Sensitivity Increasing Poten
Slide 16: CAM Division Product Trends
Bruker CAM Division Product Trends © Copyright 2012 Bruker Corporation 16 With SHS 40 Lab GC Aurora m90 ICP-MS CaptiveSpray Bruker Magic® HPLC Columns Bruker GC Care Columns Highest Performance....Low Cost of Ownership...Simplification... Smaller Instrument Footprint...Compliance Supporting Software
Slide 17: CAM Division Medium Term Financial Goals 2012E-2016E
Bruker CAM Division Medium Term Financial Goals 2012E-2016E 17 CAM Financial Status and Goals (Preliminary) CAM 2011E revenue: ~$80M CAM revenue target 2016E: >$250M ~25% revenue CAGR 2011E adj. operating loss: ~($18M) 2012E adj. operating loss: ~($9M) 2013E adj. operating result: ~break-even 2014E
Slide 18: Nano Surfaces (BNS) Division
Bruker Nano Surfaces (BNS) Division AFM Systems & AFM Probes Business, Santa Barbara, CA 3D Optical & Stylus Profiler Business, Tucson, AZ NanoIndenting and Tribology Test Instruments, Campbell, CA (BNS Division is part of Bruker MAT operating segment) Mark R. Munch, Ph.D., President INNOVATION WITH
Slide 19: Nano Surfaces Division: What We Do
Bruker Nano Surfaces Division: What We Do Leading provider of microscopy for nanoscale imaging needs The industry innovator — enabling more efficient scanning and a wider range of sample information Atomic Force Microscopes (AFMs) Automated AFMs 3D Optical Microscopes with Angstrom level performance
Slide 20: Nano Surfaces Division: Strategy and Vision
Bruker Nano Surfaces Division: Strategy and Vision 20 Set industry standard in Ease-of-Use Push performance to Higher Resolution and performance range for Broader Applications Fast scanning for Real-Time Imaging Provide Nano Scale Quantitative Information Strengthen channels in Emerging Markets INNO
Slide 21: Nano Surfaces Division: Growth through Innovation
21 Bruker Nano Surfaces Division: Growth through Innovation Breakthrough in scanning speed with “Fast Scanning” Visualization of “fast events” now possible Conventional 80 parameters Streamlined to just 5 Conventional AFM FastScan High Resolution FastScan Quality Image Protein crystallization events
Slide 22: Nano Surfaces Division: Growth through Innovation
Bruker Nano Surfaces Division: Growth through Innovation Deliver more than just imaging Measurement of nanoscale quantitative properties Nano mechanical properties PeakForce QNM® Nano electrical properties PeakForce Tuna TM Nano chemical identification TERS IRIS TM Lithium battery cathode material C
Slide 23: Nano Surfaces Division: Innovation in Optical Non-Contact 3D
Bruker Nano Surfaces Division: Innovation in Optical Non-Contact 3D R&D 100 Award for Technology Innovation Surpass the diffraction limit Lateral resolution improvement over 3X Dimensional repeatability improvement over 5X Leading algorithms and software 23 INNOVATION WITH INTEGRITY
Slide 24: Nano Surfaces Division: Markets and Key Trends
Bruker Nano Surfaces Division: Markets and Key Trends 24 KEY OPPORTUNITIES: Expanded use of AFM in Life Science Microelectronics moving toward nanoscale (Semi, LED, Data Storage) Continued development of nanomaterials KEY MARKETS: Polymer Science Material Science Life Science & Medical Precision Mac
Slide 25: Nano Surfaces Division Highly Profitable with Strong Growth
Bruker Nano Surfaces Division Highly Profitable with Strong Growth ($230.4M acquisition by Bruker on Oct. 7, 2010) 25 *Three year from launch definition BNS 2011E Performance (preliminary, unaudited) Revenue: >$160M [up >40% YOY] Adj. Operating Margin: >20% New higher-margin products driving rapid g
Slide 26: Bruker Investment Opportunity
26 Bruker Investment Opportunity: Focus on Products, Profitable Organic Growth, Disciplined Acquisitions, Strong B/S, High RoIC Core Capabilities & Trends Premier brand for high-performance life-science and analytical instruments Strong innovation and growth record, expanding market shares Operation
Slide 27: www.bruker.com
www.bruker.com © Copyright 2012 Bruker Corporation. INNOVATION WITH INTEGRITY
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