Slide 1: Q3 2019 Earnings Presentation
Bruker Corporation (Nasdaq: BRKR) Q3 2019 Earnings Presentation Frank Laukien, President & CEO Gerald Herman, Chief Financial Officer October 31, 2019 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 2019 & YTD Q3 2019 Business Update
Q3 2019 & YTD Q3 2019 Business Update 3
Slide 4: Q3 2019: Strong revenue and EPS growth
Q3 2019: Strong revenue and EPS growth Q3 2019 Performance Year-over-Year Q3 Financials Revenues [$M] +11.7% ▪ Revenues increase +$55M, or +11.7% −Organic growth +7.6%, with BSI up +8.6%, and 521.1 BEST down -0.8% 466.6 −Acquisitions add +6.4% −Constant currency growth +14.0% −Negative FX translatio
Slide 5: Year-To-Date (YTD) Q3 2019: Solid revenue growth and strong EPS increase
Year-To-Date (YTD) Q3 2019: Solid revenue growth and strong EPS increase YTD Q3-19 Performance Year-over-Year YTD Q3 2019 Financials Revenues [$M] +9.7% ▪ Revenues increase +131M, or +9.7% −Organic growth +6.0%, with BSI up +5.8%, and 1,342 1,473 BEST up +7.0% −Acquisitions add +7.0% −Constant curre
Slide 6: Group Overview: Revenue Performance Year-over-Year
GROUP OVERVIEW: YTD Q3 2019 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN up mid-single digits, with growth in systems revenue and aftermarket, and small contributions from software acquisitions ▪ NMR systems revenue grows, including two 1.0 GHz systems ▪ Preclinical imaging s
Slide 7: Group Overview: Revenue Performance Year-over-Year
GROUP OVERVIEW: YTD Q3 2019 Revenue Performance Year-over-Year(1) Bruker NANO Group ▪ NANO up high teens, primarily due to acquisitions, with low-single digit organic growth ▪ X-ray business up with solid academic demand ▪ Good growth in nano-analysis tools (e.g. EDS, microXRF) ▪ Nano-surface tools
Slide 8: First 1.2 GHz High-Resolution NMR Data Presented at EUROISMAR 2019
UPDATE ON PROJECT ACCELERATE First 1.2 GHz High-Resolution NMR Data Presented at EUROISMAR 2019 in August Solid state NMR data at 1.2 GHz of protein 3D High Resolution Protein NMR data at 1.2GHz complex of archaeal RNA polymerase (294 aa) Experiment Time: 18 minutes Experiment Time: 40 minutes ppm 1
Slide 9: Selected Final Assembly & Systems Test Operational in New Facility in Penang, Malaysia
OPERATIONAL EXCELLENCE EXAMPLE: Selected Final Assembly & Systems Test Operational in New Facility in Penang, Malaysia • New Bruker engineering, final assembly & systems test center in Penang, Malaysia now operational • Selected NANO products transferred • Lower operating costs for final assembly &
Slide 10: Q3 2019 & Financial Update
Q3 2019 & YTD Q3 2019 Financial Update 10
Slide 11: Q3 2019 Overview
NON-GAAP FINANCIAL PERFORMANCE: Q3 2019 Overview [$ m, except EPS] Q3 2019 Q3 2018 Δ COMMENTS Revenues $521.1 $466.6 +11.7% ▪ Reported revenue +11.7%, organic growth +7.6% Operating Profit $95.5 $83.3 +14.6% ▪ Operating profit up +14.6% Operating Margin (%) 18.3% 17.9% +40 bps ▪ Operating margin +40
Slide 12: Q3 2019 Revenue Bridge
Q3 2019 Revenue Bridge Q3 2019 DRIVERS Q3 2019 Revenue Growth Year-over-Year ▪ Reported revenue +11.7% Organic Currency Portfolio Total ▪ Organic revenue +7.6%, +7.6% -2.3% +6.4% +11.7% – BSI +8.6% organic – BEST down -0.8% organic (net of intercompany Q3 2019 Revenue Bridge [$M] eliminations) +$35.
Slide 13: Q3 2019 Non-GAAP Results Year-over-Year
Q3 2019 Non-GAAP Results Year-over-Year [$ m, except EPS] Q3 2019 Q3 2018 Δ COMMENTS Total Revenues 521.1 466.6 +11.7% ▪ Gross margin up +130 bps, Gross Profit 263.2 229.8 +14.5% driven by CALID operational Margin (% of revenues) 50.5% 49.2% +130 bps improvements, accretive acquisitions and favorabl
Slide 14: YTD Q3 2019 Revenue Bridge
YTD Q3 2019 Revenue Bridge YTD Q3 2019 DRIVERS YTD Q3 2019 Revenue Growth Year-over-Year ▪ Reported revenue +9.7% Organic Currency Portfolio Total ▪ Organic revenue +6.0%, +6.0% -3.3% +7.0% +9.7% – BSI +5.8% organic – BEST +7.0% organic (net of intercompany eliminations) YTD Q3 2019 Revenue Bridge [
Slide 15: YTD Q3 2019 Non-GAAP Results Year-over-Year
YTD Q3 2019 Non-GAAP Results Year-over-Year [$ m, except EPS] YTD 2019 YTD 2018 Δ COMMENTS Total Revenues 1,472.7 1,342.0 +9.7% ▪ Gross margin up +150 bps, Gross Profit 731.5 646.2 +13.2% driven by CALID operational Margin (% of revenues) 49.7% 48.2% +150 bps improvements, accretive SG&A -359.0 -322
Slide 16: YTD Q3 2019 Cash Flow Year-over-Year
YTD Q3 2019 Cash Flow Year-over-Year [$ m] YTD 2019 YTD 2018 Δ COMMENTS GAAP Net Income 129.2 103.1 +26.1 ▪ YTD Q3 2019 free cash flow of $32.4M, compared Depreciation & amortization 57.3 48.3 +9.0 to $78.5M in YTD Q3 2018: – Higher net income Changes in working capital(1) -73.7 -54.6 -19.1 – Offset
Slide 17: FY 2019 Outlook
FY 2019 Outlook 17
Slide 18: FY 2019 Guidance: Increasing FY 2019 Non-GAAP EPS Outlook
FY 2019 Guidance: Increasing FY 2019 Non-GAAP EPS Outlook FY 2019 Guidance 2019 ASSUMPTIONS ▪ Organic revenue growth: Revenue Growth y-o-y +7% to +8% +4.5% to +5.5% ▪ Acquisition revenue growth: approximately +5.5% Non-GAAP Operating +90 bps to +120 bps ▪ Constant currency revenue Margin Expansion y
Slide 19: Appendix
Appendix 19
Slide 20: Q3 2019 GAAP Results Year-over-Year
Q3 2019 GAAP Results Year-over-Year [$M, except EPS] Q3 2019 Q3 2018 Δ Total Revenues 521.1 466.6 +12% Gross Profit 253.9 222.6 +14% Margin (% of revenue) 48.7% 47.7% SG&A -125.3 -106.5 +18% (% of revenues) 24.0% 22.8% R&D -46.1 -41.8 +10% (% of revenues) 8.8% 9.0% Operating Income 87.8 69.1 +27% (%
Slide 21: Q3 2019 Reconciliation of GAAP and Non-GAAP Results
Q3 2019 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] Q3 2019 Q3 2018 GAAP Operating Income 87.8 69.1 Restructuring Costs -6.8 2.5 Acquisition-Related Costs 4.1 2.8 Purchased Intangible Amortization 9.2 6.9 Other Costs 1.2 2.0 TOTAL 7.7 14.2 Non-GAAP Operating Income 95
Slide 22: YTD Q3 2019 GAAP Results Year-over-Year
YTD Q3 2019 GAAP Results Year-over-Year [$M, except EPS] YTD 2019 YTD 2018 Δ Total Revenues 1,472.7 1,342.0 +10% Gross Profit 699.0 627.2 +11% Margin (% of revenue) 47.5% 46.7% SG&A -369.9 -327.4 +13% (% of revenues) 25.1% 24.4% R&D -141.0 -128.6 +10% (% of revenues) 9.6% 9.6% Operating Income 183.2
Slide 23: YTD Q3 2019 Reconciliation of GAAP and Non-GAAP Results
YTD Q3 2019 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] YTD 2019 YTD 2018 GAAP Operating Income 183.2 156.0 Restructuring Costs -1.4 6.7 Acquisition-Related Costs 15.2 3.9 Purchased Intangible Amortization 29.2 21.5 Other Costs 5.3 7.0 TOTAL 48.3 39.1 Non-GAAP Operati
Slide 24: Balance Sheet
Balance Sheet [$M] Sep 30, 2019 Dec 31, 2018 Sep 30, 2018 Total Assets 2,352.1 2,128.6 1,889.1 Working Capital(1) 828.9 762.3 742.0 Intangibles, Net & Other 571.1 553.7 366.7 Long-Term Assets [$M] Sep 30, 2019 Dec 31, 2018 Sep 30, 2018 Cash, Cash Equivalents & 302.4 322.4 270.1 Short-term Investment
Slide 25: BSI and BEST GAAP Performance Year-over-Year
Q3 2019 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Year-over-Year [$ m] Q3 2019 Q3 2018 Δ REVENUE Scientific Instruments (BSI) 471.8 417.1 +13% Organic Revenue Growth (%) +8.6% +6.5% Energy & Supercon Technologies (BEST) 52.5 50.9 +3% Corporate Eliminations -3.2 -1.4 Energy & Supercon Techn
Slide 26: BSI and BEST GAAP Performance Year-over-Year
YTD Q3 2019 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Year-over-Year [$ m] YTD 2019 YTD 2018 Δ REVENUE Scientific Instruments (BSI) 1,331.0 1,206.5 +10% Organic Revenue Growth (%) +5.8% +5.8% Energy & Supercon Technologies (BEST) 152.2 139.2 +9% Corporate Eliminations -10.5 -3.7 Energy & S