Slide 1: Bruker Corporation Q3 2020 Earnings Presentation
Bruker Corporation (Nasdaq: BRKR) Q3 2020 Earnings Presentation Frank Laukien, President & CEO Gerald Herman, Chief Financial Officer November 2, 2020 Miroslava Minkova, Director of Investor Relations & Corporate Development Innovation with Integrity
Slide 2: Safe Harbor
BRUKER CORPORATION Safe Harbor 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 1934, as amend
Slide 3: Q3 2020 & YTD Q3 2020 Business Update
Q3 2020 & YTD Q3 2020 Business Update 3
Slide 4: Q3 2020: Revenue Down Slightly, Non-GAAP Operating Margin and EPS Approach Q3 2019 Levels
Q3 2020: Revenue Down Slightly, Non-GAAP Operating Margin and EPS Approach Q3 2019 Levels ➢ Significant Sequential Improvements with Continuing Academic Market Recovery Q3 2020 Performance Year-over-Year Q3 Financials Revenues [$M] -1.9% ▪ Revenues decrease -$9.7M, or -1.9% −Organic decline of -4.6%
Slide 5: Year-To-Date Q3 2020: Lower Revenues and Earnings Amid Pandemic and Economic Slowdown
Year-To-Date (YTD) Q3 2020: Lower Revenues and Earnings Amid Pandemic and Economic Slowdown YTD Q3-20 Performance Year-over-Year YTD Q3 2020 Financials Revenues [$M] -7.7% ▪ Revenues decrease -$112.7M, or -7.7% 1,473 −Organic decline of -8.3% with BSI down -7.9% 1,360 and BEST down -12.6% −Acquisiti
Slide 6: YTD Q3 2020 Revenue Performance Year-over-Year
GROUP OVERVIEW: YTD Q3 2020 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN down mid single digits YTD, due to COVID-19 customer disruptions and installation delays, primarily in H1 2020; BIOSPIN performance improves sequentially in Q3 2020 ▪ YTD NMR and PCI system revenues lowe
Slide 7: YTD Q3 2020 Revenue Performance Year-over-Year
GROUP OVERVIEW: YTD Q3 2020 Revenue Performance Year-over-Year(1) Bruker NANO Group ▪ NANO down mid teens YTD, due to COVID-19-related academic market slowdown, weaker industrial and industrial research demand ▪ X-ray, Nano-surface and Nano-analysis tools lower with reduced academic and industrial r
Slide 8: Canopy Biosciences Acquisition Strengthens Bruker's Spatial Omics and Targeted Multiomics Offerings
UPDATE ON PROJECT ACCELERATE Canopy Biosciences Acquisition Strengthens Bruker’s Spatial Omics and Targeted Multiomics Offerings • Leading high-plex biomarker imaging for immunophenotyping using multiplexed fluorescence microscopy • ChipCytometry: manual and automated platforms, consumables and serv
Slide 9: Continued Progress in 4D Proteomics at HUPO 2020
UPDATE ON PROJECT ACCELERATE Continued Progress in 4D Proteomics at HUPO 2020 • Parallel Search Engine in Real Time (PaSER): GPU-based engine, enabling proteomics search in real time − Builds on September 2020 acquisition of IP2 proteomics software platform − Enhances Bruker’s bioinformatics capabil
Slide 10: Financial Update
Q3 2020 & YTD Q3 2020 Financial Update 10
Slide 11: Q3 2020 Overview
NON-GAAP FINANCIAL PERFORMANCE: Q3 2020 Overview [$ m, except EPS] Q3 2020 Q3 2019 Δ COMMENTS Revenues 511.4 521.1 -1.9% ▪ Reported revenue -1.9%, organic revenue -4.6% Operating Profit 94.9 95.5 -0.6% Operating Margin (%) 18.6% 18.3% +30 bps ▪ Operating profit approximately flat Non-GAAP EPS $0.42
Slide 12: Q3 2020 Revenue Bridge
Q3 2020 Revenue Bridge Q3 2020 DRIVERS Q3 2020 Revenue Performance Year-over-Year ▪ Reported revenue -1.9% Organic Currency Portfolio Total ▪ Organic revenue –4.6% -4.6% +2.4% +0.3% -1.9% – BSI down -3.0% organic – BEST down -20.3% organic (net of intercompany eliminations) Q3 2020 Revenue Bridge [$
Slide 13: Q3 2020 Non-GAAP Results Year-over-Year
Q3 2020 Non-GAAP Results Year-over-Year [$ m, except EPS] Q3 2020 Q3 2019 Δ COMMENTS Total Revenues 511.4 521.1 -1.9% ▪ Gross margin down -90 bps: Gross Profit 253.8 263.2 -3.6% – lower volume and reduced Margin (% of revenues) 49.6% 50.5% -90 bps productivity at NANO, BEST SG&A -110.6 -121.6 -9.1%
Slide 14: YTD Q3 2020 Revenue Bridge
YTD Q3 2020 Revenue Bridge YTD Q3 2020 DRIVERS YTD Q3 2020 Revenue Performance Year-over-Year ▪ Reported revenue -7.7% Organic Currency Portfolio Total ▪ Organic revenue -8.3% -8.3% +0.1% +0.5% -7.7% – BSI down -7.9% organic – BEST down -12.6% organic (net of intercompany eliminations) YTD Q3 2020 R
Slide 15: YTD Q3-20 Non-GAAP Results Year-over-Year
YTD Q3-20 Non-GAAP Results Year-over-Year [$ m, except EPS] YTD 2020 YTD 2019 Δ COMMENTS Total Revenues 1,360.0 1,472.7 -7.7% ▪ Gross margin down –240 bps, Gross Profit 643.6 731.5 -12.0% on lower volume and reduced Margin (% of revenues) 47.3% 49.7% -240 bps productivity from COVID-19 SG&A -326.6 -
Slide 16: YTD Q3 2020 Cash Flow Year-over-Year
YTD Q3 2020 Cash Flow Year-over-Year [$ m] YTD 2020 YTD 2019 Δ COMMENTS GAAP Net Income 90.1 129.2 -39.1 ▪ YTD Q3 2020 free cash flow of $60.8M, vs. Depreciation & amortization 58.7 57.3 +1.4 $32.4M in YTD Q3 2019: – Lower net income Changes in working capital* -80.7 -73.7 -7.0 – Continued CAPEX Oth
Slide 17: FY 2020 Outlook
FY 2020 Outlook 17
Slide 18: FY 2020 Outlook
FY 2020 Outlook FY 2020 Guidance Remains Suspended ▪ On March 27, 2020, Bruker suspended its FY 2020 guidance due to the uncertain business conditions created by COVID-19. Q4 2020 Scenarios ▪ Bruker anticipates the pandemic and economic slowdown will continue to have a negative year- over-year impac
Slide 19: Appendix
Appendix 19
Slide 20: Q3 2020 GAAP Results Year-over-Year
Q3 2020 GAAP Results Year-over-Year [$M, except EPS] Q3 2020 Q3 2019 Δ Total Revenues 511.4 521.1 -1.9% Gross Profit 248.3 253.9 -2.2% Margin (% of sales) 48.6% 48.7% SG&A -114.6 -125.3 -8.5% (% of revenues) 22.4% 24.0% R&D -48.3 -46.1 4.8% (% of revenues) 9.4% 8.8% Operating Income 81.2 87.8 -7.5%
Slide 21: Q3 2020 Reconciliation of GAAP and Non-GAAP Results Year-over-Year
Q3 2020 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] Q3 2020 Q3 2019 GAAP Operating Income 81.2 87.8 Restructuring Costs 1.9 -6.8 Acquisition-Related Costs 1.4 4.1 Purchased Intangible Amortization 9.1 9.2 Other Costs 1.3 1.2 TOTAL 13.7 7.7 Non-GAAP Operating Income 94
Slide 22: YTD Q3 2020 GAAP Results Year-over-Year
YTD Q3 2020 GAAP Results Year-over-Year [$M, except EPS] YTD 2020 YTD 2019 Δ Total Revenues 1,360.0 1,472.7 -7.7% Gross Profit 626.8 699.0 -10.3% Margin (% of sales) 46.1% 47.5% SG&A -338.2 -369.9 -8.6% (% of revenues) 24.9% 25.1% R&D -140.9 -141.0 -0.1% (% of revenues) 10.4% 9.6% Operating Income 1
Slide 23: YTD Q3 2020 Reconciliation of GAAP and Non-GAAP Results Year-over-Year
YTD Q3 2020 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] YTD 2020 YTD 2019 GAAP Operating Income 135.5 183.2 Restructuring Costs 5.7 -1.4 Acquisition-Related Costs -0.5 15.2 Purchased Intangible Amortization 26.8 29.2 Other Costs 8.6 5.3 TOTAL 40.6 48.3 Non-GAAP Operat
Slide 24: Q3 2020 Cash Flow Year-over-Year
Q3 2020 Cash Flow Year-over-Year [$ m] Q3 2020 Q3 2019 Δ COMMENTS GAAP Net Income 55.3 61.5 -6.2 ▪ Q3 2020 free cash flow of $64.8M compared to Depreciation & amortization 20.5 18.9 +1.6 $36.2M in Q3-19: – Lower net income Changes in working capital* -18.9 -34.0 +15.1 – CAPEX investments in Other it
Slide 25: Balance Sheet
Balance Sheet [$M] Sep 30, 2020 Dec 31, 2019 Sep 30, 2019 Total Assets 2,879.4 2,771.5 2,352.1 Working Capital* 911.9 821.0 828.9 Goodwill, Intangibles, Net & 636.5 603.5 571.1 Other Long-Term Assets [$M] Sep 30, 2020 Dec 31, 2019 Sep 30, 2019 Cash, Cash Equivalents & 617.1 684.9 302.4 Short-term In
Slide 26: BSI and BEST GAAP Performance Year-over-Year
Q3 2020 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Year-over-Year [$ m] Q3 2020 Q3 2019 Δ REVENUE Scientific Instruments (BSI) 470.5 471.8 -0.3% Organic Revenue Growth (%) -3.0% +8.6% Energy & Supercon Technologies (BEST) 43.8 52.5 -16.6% Corporate Eliminations -2.9 -3.2 Energy & Supercon T
Slide 27: BSI and BEST GAAP Performance Year-over-Year
YTD Q3 2020 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Year-over-Year [$ m] YTD 2020 YTD 2019 Δ REVENUE Scientific Instruments (BSI) 1,235.3 1,331.0 -7.2% Organic Revenue Growth (%) -7.9% +5.8% Energy & Supercon Technologies (BEST) 134.8 152.2 -11.4% Corporate Eliminations -10.1 -10.5 Energ