Bruker Corporation · NASDAQ:BRKR

Bruker — Q2 2015 Earnings Presentation

27 slides from Bruker's earnings presentation, Aug 5, 2015

  1. Slide 1: Bruker Corporation Q2 2015 Earnings Presentation

    Bruker Corporation (NASDAQ: BRKR) Q2 2015 Earnings Presentation Frank Laukien, President & CEO Anthony Mattacchione, SVP & Interim CFO August 5, 2015 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: Q2-15 & H1 2015 Business Update

    Q2-15 & H1 2015 Business Update © Bruker Corporation 3

  4. Slide 4: Organic revenue growth in CALID & NANO Groups offset by organic decline in BIOSPIN and BEST

    Organic revenue growth in CALID & NANO Groups offset by organic decline in BIOSPIN and BEST Q2 2015 Performance  Revenues decline -$61m, or -13% y-o-y Q2 Financials − FX headwinds lower revenue -12% y-o-y Revenues [$ m] -13% − 2014 CAM divestitures result in -$12M y-o-y revenue decline 457 396  Or

  5. Slide 5: In H1 2015, Bruker expanded operating margins despite decline in revenues

    In H1 2015, Bruker expanded operating margins by 90 bps despite decline in revenues H1 2015 Performance H1 Financials  Revenues decline -15% y-o-y Revenues [$ m] -15%  Organic revenue decline of -1% y-o-y 881 1. Low to mid-single digit organic revenue 749 growth from NANO and CALID Groups 2. Doubl

  6. Slide 6: Group Overview: Q2 2015 Performance (BIOSPIN, CALID)

    GROUP OVERVIEW: Q2 2015 Performance Bruker BIOSPIN Group  Mid-single digit y-o-y organic revenue decline represents sequential improvement from Q1-15  Profitability lower due to negative product mix and the y-o-y effects from the large, 21-Tesla research magnet revenue in Q2-14  Weak Preclinical

  7. Slide 7: Group Overview: Q2 2015 Performance (NANO, BEST)

    GROUP OVERVIEW: Q2 2015 Performance Bruker NANO Group  Reports low single-digit organic revenue growth  Nano Surfaces Division sees weak demand in research and auto- AFM, with good acceptance of Fluorescence Microscopy products  Nano Analytics Division drives growth for X-ray fluorescence microan

  8. Slide 8: ASMS Introduction: MALDI Tissuetyper

    ASMS Introduction: MALDI Tissuetyper™ a Breakthrough in Mass Spec Imaging (MSI) for Anatomical Pathology Research • Dramatic further improvement in spatial resolution, image quality and contrast of MALDI Imaging • Order of magnitude increase in speed and throughput, e.g. – One small biopsy per minut

  9. Slide 9: ASMS Introduction: MALDI PharmaPulse Launch

    ASMS Introduction: MALDI PharmaPulse™ Launch • Fast enough for true pharma HTS drug discovery and hit generation ( <1sec/sample) – 10-100x faster than multiplexed LC/SPE-MS • Label free detection accelerates assay development, reduces complexity of screening and minimizes artifacts from label interf

  10. Slide 10: Bruker 2015 Priorities

    Bruker 2015 Priorities Continue transformation of leadership, management processes, and systems Execute BIOSPIN rightsizing and factory consolidation Accelerate further outsourcing of high- level assemblies in CALID and NANO Drive profitable growth initiative • New high-performance products • New hi

  11. Slide 11: Q2 2015 Financial Update

    Q2 2015 Financial Update © Bruker Corporation 11

  12. Slide 12: Q2 2015 Overview

    NON-GAAP FINANCIAL PERFORMANCE: Q2 2015 Overview [$ m, except EPS] Q2 2015 Q2 2014 Δ COMMENTS Revenues 396.0 457.4 -13%  Non-GAAP operating margins decline due to negative mix Operating Income 42.9 52.7 -19% and y-o-y effect of 21-Tesla research magnet in Q2-14 Margin (%) 10.8% 11.5%  Free cash fl

  13. Slide 13: Q2 2015 revenue bridge

    Q2 2015 revenue bridge Q2 2015 DRIVERS Q2 2015 Revenue for Bruker Corp.  Organic revenue growth of 1% equally driven by Organic Currency Divestitures Total CALID and NANO Groups 0.7% -11.5% -2.6% -13.4%  Divestitures completely related to divested CAM assets Q2 2015 Revenue Bridge [$ m] $3.2 -$52.

  14. Slide 14: Q2 2015 Non-GAAP Results

    Q2 2015 Non-GAAP Results [$ m, except EPS] Q2 2015 Q2 2014 Δ COMMENTS Total Revenues 396.0 457.4 -13%  Gross margin down year- Gross Profit 178.4 211.8 -16% over-year due to tough Margin (% of revenues) 45.1% 46.3% comparison and less profitable revenue mix SG&A -98.0 -114.6 -14% (% of revenues) 24

  15. Slide 15: Q2 2015 Reconciliation of GAAP and Non-GAAP Results

    Q2 2015 Reconciliation of GAAP and Non-GAAP Results [$ m, except EPS] Q2 2015 Q2 2014 GAAP Operating Income 31.6 35.4 Restructuring Costs 5.2 10.7 Acquisition-Related Costs -2.8 0.5 Purchased Intangible Amortization 5.2 4.8 Other Costs 3.7 1.3 TOTAL 11.3 17.3 Non-GAAP Operating Income 42.9 52.7 Non-

  16. Slide 16: H1 2015 revenue bridge

    H1 2015 revenue bridge H1 2015 DRIVERS H1 2015 Revenue for Bruker Corp.  Organic revenue decline Acquisitions & of -1.0% Organic Currency Divestitures Total  Acquisitions & -1.0% -11.3% -2.6% -14.9% divestitures primarily relate to $24M of divested CAM assets  Weaker Euro drove most H1 2015 Reven

  17. Slide 17: H1 2015 Non-GAAP Results

    H1 2015 Non-GAAP Results [$ m, except EPS] H1 2015 H1 2014 Δ COMMENTS Total Revenues 749.5 881.1 -15%  H1 2015 performance is Gross Profit 345.5 399.0 -13% generally on track Margin (% of revenues) 46.1% 45.3%  Improved gross margins SG&A -192.1 -223.7 -14% in NANO & CALID Groups (% of revenues) 2

  18. Slide 18: H1 2015 Reconciliation of GAAP and Non-GAAP Results

    H1 2015 Reconciliation of GAAP and Non-GAAP Results [$ m, except EPS] H1 2015 H1 2014 GAAP Operating Income 46.8 56.0 Restructuring Costs 8.5 13.1 Acquisition-Related Costs -2.6 1.6 Purchased Intangible Amortization 10.4 10.0 Other Costs 15.6 4.1 TOTAL 31.9 28.8 Non-GAAP Operating Income 78.7 84.8 N

  19. Slide 19: H1 2015 Cash Flow Statement

    H1 2015 Cash Flow Statement [$ m] H1 2015 H1 2014 Δ COMMENTS Net Income 30.0 26.8 3.2  Higher net income includes fewer restructuring charges in Depreciation & amortization 26.7 30.0 -3.3 H1-15 versus H1-14 Changes in working capital* 14.4 18.8 -4.4  Changes in working capital is lower, primarily

  20. Slide 20: Full Year 2015 Outlook

    Full Year 2015 Outlook © Bruker Corporation 20

  21. Slide 21: Bruker FY 2015 Outlook

    Bruker FY 2015 Outlook FY 2015 Financial Outlook (unchanged) 2015 ASSUMPTIONS  Changes in currency Revenues (organic) Approximately +1% reduce revenues by -9% to -10%  FX generates -12% or Non-GAAP Operating >100 bps (-$0.09) headwind to Margin non-GAAP EPS in 2015  CAM related revenues decrease

  22. Slide 22: Appendix

    Appendix © Bruker Corporation 22

  23. Slide 23: Q2 2015 GAAP Results

    Q2 2015 GAAP Results [$ m, except EPS] Q2 2015 Q2 2014 Δ Total Revenues 396.0 457.4 -13% Gross Profit 169.4 200.5 -16% Margin (% of sales) 42.8% 43.8% SG&A -98.5 -115.0 -14% (% of revenues) 24.9% 25.1% R&D -37.5 -44.5 -16% (% of revenues) 9.5% 9.7% Operating Income 31.6 35.4 -11% (% of revenues) 8.0

  24. Slide 24: Q2 2015 Cash Flow Statement

    Q2 2015 Cash Flow Statement [$ m] Q2 2015 Q2 2014 Δ Net Income 23.1 16.8 6.3 Depreciation & amortization 13.2 14.8 -1.6 Changes in working capital* -16.1 1.8 -17.9 Other -21.7 -20.4 -1.3 Operating cash flow -1.5 13.0 -14.5 Capital expenditures -7.7 -7.6 -0.1 Free cash flow -9.2 5.4 -14.6 * WC = (Acc

  25. Slide 25: Balance sheet

    Balance sheet [$ m] Jun 30, 2015 Jun 30, 2014 Dec 31, 2014 Total Assets 1,820.4 2,003.9 1,864.8 Working Capital* 642.2 789.5 694.6 Intangibles, Net & Other Long-Term 232.8 245.1 248.6 Assets [$ m] Jun 30, 2015 Jun 30, 2014 Dec 31, 2014 Cash, Cash Equivalents & Short-term 493.6 457.6 497.5 Investment

  26. Slide 26: H1 2015 GAAP Results

    H1 2015 GAAP Results [$ m, except EPS] H1 2015 H1 2014 Δ Total Revenues 749.5 881.1 -15% Gross Profit 329.6 380.2 -13% Margin (% of sales) 44.0% 43.2% SG&A -193.1 -224.5 -14% (% of revenues) 25.8% 25.5% R&D -74.7 -90.5 -17% (% of revenues) 10.0% 10.3% Operating Income 46.8 56.0 -16% (% of revenues)

  27. Slide 27: BSI and BEST GAAP Performance

    Q2 SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q2 2015 Q2 2014 Δ REVENUE Scientific Instruments (BSI) 366.2 421.5 -13% Organic Revenue Growth (%) 0.6% -2.5% Energy & Supercon Technologies (BEST) 30.8 41.4 -26% Organic Revenue Growth (%) -8.1% 6.3% Corporate Eliminations -1.0 -5.5 Total Reve

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