Bruker Corporation · NASDAQ:BRKR

Bruker — Q2 2014 Earnings Presentation

24 slides from Bruker's earnings presentation, Aug 6, 2014

1. Slide 1: Bruker Corporation Q2 2014 Earnings Presentation

   Bruker Corporation (NASDAQ: BRKR) Q2 2014 Earnings Presentation Frank Laukien, President & CEO Charles Wagner, EVP & CFO August 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: Q2 & YTD 2014 Business Update

   Q2 & YTD 2014 Business Update © Bruker Corporation 3

4. Slide 4: Operating performance in Q2 was in line with expectations

   Operating performance in Q2 was in line with expectations Q2 2014 Performance Q2 Financials  Revenue growth of 1% y-o-y, compared to Revenues [$ m] +1% strong Q2 2013 1. Mid-single digit growth in BioSpin and solid 455 457 BEST performance drive revenues 2. CALID declines mid-single digits due to w

5. Slide 5: H1 2014 solid revenue growth, margin expansion and higher FCF

   In H1 2014 we have delivered a solid combination of revenue growth, margin expansion and higher FCF H1 2014 Performance H1 Financials  Revenue growth of 4% y-o-y Revenues [$ m] +4% 1. Low to mid-single digit growth from all Groups 881 848 2. BEST revenues up 12% 3. Mid-single digit revenue growth i

6. Slide 6: Q2 2014 Performance & Outlook: BioSpin and CALID

   GROUP OVERVIEW: Q2 2014 Performance & Outlook Bruker BioSpin Group  Mid-single digit revenue growth, with strongest growth in the Americas; Asia growth benefits from 2013 Japanese stimulus  Revenue recognized from installation of world’s first horizontal 21 Tesla magnet for FT-ICR at NHMFL in Tall

7. Slide 7: Q2 2014 Performance & Outlook: BMAT and BEST

   GROUP OVERVIEW: Q2 2014 Performance & Outlook Bruker MAT Group  BMAT Group revenues flat, compared to Q2 2014  Academic & research markets are healthy  No pickup in demand from microelectronics markets  Flat Q2 BMAT bookings contribute to lower outlook for H2  Bruker Nano Surfaces Division grow

8. Slide 8: Q2 2014 Financial Update

   Q2 2014 Financial Update © Bruker Corporation 8

9. Slide 9: Q2 2014 Overview

   NON-GAAP FINANCIAL PERFORMANCE: Q2 2014 Overview [$ m, except EPS] Q2 2014 Q2 2013 Δ COMMENTS Revenues 457.4 454.9 1%  Q2’14 revenues in line with expectations after strong Operating Income 52.7 53.3 -1% Q1’14, and compared to relatively strong Q2’13 Margin (%) 11.5% 11.7%  Currency headwind and E

10. Slide 10: Q2 2014 revenue bridge

    Q2 2014 revenue bridge Q2 2014 DRIVERS Q2 2014 Revenue Growth for Bruker Corp.  Stronger Euro is primary Acquisitions & driver for positive Organic Currency Divestitures Total currency contribution -2.2% 2.3% 0.5% 0.6%  Acquisition benefit relates to BMAT acquisition of Prairie Technologies’ fluor

11. Slide 11: Q2 2014 Non-GAAP Results

    Q2 2014 Non-GAAP Results [$ m] Q2 2014 Q2 2013 Δ COMMENTS Total Revenues 457.4 454.9 1%  Gross margin benefits Gross Profit 211.8 206.5 3% from positive mix, Margin (% of sales) 46.3% 45.4% particularly in BioSpin Group SG&A -114.6 -106.7 7% (% of revenues) 25.1% 23.5%  SG&A expenses higher due to

12. Slide 12: Q2 2014 Reconciliation of GAAP and Non-GAAP Results

    Q2 2014 Reconciliation of GAAP and Non-GAAP Results [$ m] Q2 2014 Q2 2013 GAAP Operating Income 35.4 43.5 Restructuring Costs 10.7 1.8 Acquisition Related Costs 0.5 0.3 Purchased Intangible Amortization 4.8 5.1 Other Costs 1.3 2.6 TOTAL 17.3 9.8 Non-GAAP Operating Income 52.7 53.3 Non-GAAP Net Inter

13. Slide 13: H1 2014 revenue bridge

    H1 2014 revenue bridge H1 2014 DRIVERS H1 2014 Revenue Growth for Bruker Corp.  H1 2014 y-o-y revenue Acquisitions & growth in line with initial Organic Currency Divestitures Total expectations 1.9% 1.2% 0.8% 3.9%  Positive currency benefit primarily due to the strong Euro, especially in Q2’14 H1

14. Slide 14: H1 2014 Non-GAAP Results

    H1 2014 Non-GAAP Results [$ m] H1 2014 H1 2013 Δ Total Revenues 881.1 848.3 4% Gross Profit 399.0 386.0 3% Margin (% of sales) 45.3% 45.5% SG&A -223.7 -213.2 5% (% of revenues) 25.4% 25.1% R&D -90.5 -95.9 -6% (% of revenues) 10.3% 11.3% Operating Income 84.8 76.9 10% (% of revenues) 9.6% 9.1% Tax Ra

15. Slide 15: H1 2014 Reconciliation of GAAP to Non-GAAP Results

    H1 2014 Reconciliation of GAAP to Non-GAAP Results [$ m] H1 2014 H1 2013 GAAP Operating Income 56.0 55.7 Restructuring Costs 13.1 5.0 Acquisition Related Costs 1.6 0.9 Purchased Intangible Amortization 10.0 10.2 Other Costs 4.1 5.1 TOTAL 28.8 21.2 Non-GAAP Operating Income 84.8 76.9 Non-GAAP Net Int

16. Slide 16: Balance sheet

    Balance sheet [$ m] Jun 30, 2014 Dec 31, 2013 Δ Total Assets 2,003.9 1,988.3 1% Working Capital* 789.5 822.6 -4% Intangible & Other Assets 245.1 256.9 -5% [$ m] Jun 30, 2014 Dec 31, 2013 Δ Cash, Cash Equivalents & Short-term 457.6 438.7 4% investments Financial Debt 355.7 355.0 NM Net Cash 101.9 83.

17. Slide 17: H1 2014 Cash Flow Statement

    H1 2014 Cash Flow Statement [$ m] H1 2014 H1 2013 Δ COMMENTS Net Income 26.8 29.0 -2.2  Cash conversion cycle improves by 7 days compared to Q2’13 Depreciation & amortization 30.0 30.2 -0.2 – DIO: 229 Changes in working capital* 18.8 -41.6 60.4 – DSO: 57 Other -44.1 -42.5 -1.6 – DPO: 42 – CCC: 244

18. Slide 18: 2014 Guidance

    2014 Guidance © Bruker Corporation 18

19. Slide 19: Updated FY 2014 Guidance

    Updated FY 2014 Guidance Bruker’s revised FY 2014 Guidance ASSUMPTIONS  Lowering guidance due to Revenue Growth (reported) 1% to 2% additional CAM weakness after restructuring announcement, drop-out of Rosatom pilot line revenue Non-GAAP Tax Rate ~29%-30% in Q3’14, and reduced H2 growth outlook in

20. Slide 20: Appendix

    Appendix © Bruker Corporation 20

21. Slide 21: Q2 2014 GAAP Results

    Q2 2014 GAAP Results [$ m] Q2 2014 Q2 2013 Δ Total Revenues 457.4 454.9 1% Gross Profit 200.5 201.6 -1% Margin (% of sales) 43.8% 44.3% SG&A -115.0 -107.1 7% (% of revenues) 25.1% 23.5% R&D -44.5 -46.5 -4% (% of revenues) 9.7% 10.2% Operating Income 35.4 43.5 -19% (% of revenues) 7.7% 9.6% Net Incom

22. Slide 22: H1 2014 GAAP Results

    H1 2014 GAAP Results [$ m] H1 2014 H1 2013 Δ Total Revenues 881.1 848.3 4% Gross Profit 380.2 376.1 1% Margin (% of sales) 43.2% 44.3% SG&A -224.5 -213.9 5% (% of revenues) 25.5% 25.2% R&D -90.5 -95.9 -6% (% of revenues) 10.3% 11.3% Operating Income 56.0 55.7 1% (% of revenues) 6.4% 6.6% Net Income*

23. Slide 23: Q2 2014 Cash Flow Statement

    Q2 2014 Cash Flow Statement [$ m] Q2 2014 Q2 2013 Δ COMMENTS Net Income 16.8 23.3 -6.5  Improved free cash flow is the result of continued improvements in working Depreciation & amortization 14.8 15.0 -0.2 capital and lower capital expenditures Changes in working capital* 1.8 -21.1 22.9 Other -20.4

24. Slide 24: BSI and BEST GAAP Performance

    Q2 SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q2 2014 Q2 2013 Δ REVENUE Scientific Instruments (BSI) 421.5 421.6 NM Organic Revenue Growth (%) -2.5% 7.7% Energy & Supercon Technologies (BEST) 41.4 37.1 12% Organic Revenue Growth (%) 6.3% 40.0% Corporate Eliminations & Other -5.5 -3.8 Total

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