Slide 1: Bruker Corporation Q1 2019 Earnings Presentation
Bruker Corporation (Nasdaq: BRKR) Q1 2019 Earnings Presentation Frank Laukien, President & CEO Gerald Herman, Chief Financial Officer May 2, 2019 Pam Clark, Investor Relations Innovation with Integrity
Slide 2: Safe Harbor & Reg. G Statement
BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this press release 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 A
Slide 3: Q1 2019 Business Update
Q1 2019 Business Update 3
Slide 4: Q1 2019: Solid revenue growth, margin improvement and EPS growth
Q1 2019: Solid revenue growth, margin improvement and EPS growth Q1 2019 Performance Year-over-Year Q1 Financials Revenues [$M] +6.9% ▪ Revenues increase +$30M, or +6.9% −Organic growth +5.5%, with BSI up +5.5%, and BEST up +5.4% 431.7 461.4 −Acquisitions add +6.0% −Constant currency growth +11.5% −
Slide 5: Q1 2019 Revenue Growth Year-over-Year: BioSpin and CALID
GROUP OVERVIEW: Q1 2019 Revenue Growth Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN revenue flat, primarily due to shifts to subsequent quarters ▪ NMR systems revenue up modestly ▪ PCI revenue down significantly on customer installation delays ▪ Solid after-market revenue increase Bruker CALID G
Slide 6: Q1 2019 Revenue Growth Year-over-Year: NANO and BEST
GROUP OVERVIEW: Q1 2019 Revenue Growth Year-over-Year (1) Bruker NANO Group ▪ NANO revenue up in DD, driven by both organic growth and significant contribution from acquisitions (primarily Anasys, JPK and Alicona) ▪ AXS up modestly, following a strong Q4-18 ▪ Strong growth in Nano Surfaces and Nano
Slide 7: First 1.1 GHz High-Resolution NMR Magnet Introduced at ENC 2019
UPDATE ON PROJECT ACCELERATE: First 1.1 GHz High-Resolution NMR Magnet for Structural Biology Introduced at ENC 2019 New World Record: Stable, high-resolution 1.1 GHz Utrecht University; Max Planck Institute for Biophysical Chemistry The Netherlands in Goettingen, Germany NMR superconducting magnet
Slide 8: timsTOF Pro at US HUPO and EUPA 2019
UPDATE ON PROJECT ACCELERATE: timsTOF™ Pro at US HUPO and EUPA 2019: Progress in TIMS/PASEF Methods for Record-breaking Throughput and Ultra-High Sensitivity in 4D Proteomics • Next-gen 4D Proteomics: 4D ‘match between runs’ and DIA-PASEF using Collision Cross- Sections (CCS) for exceptional complet
Slide 9: Bruker Key Objectives 2019-2023
UPDATE ON BRUKER STRATEGY AND GOALS: Bruker Key Objectives 2019-2023 1. Accelerate revenue growth • Enhance organic revenue growth with Project Accelerate initiatives Proteomics & Phenomics After-Market Biopharma & Applied 2. Transform portfolio with six high-growth, high-margin Project Accelerate i
Slide 10: Financial Update
Q1 2019 Financial Update 10
Slide 11: Q1 2019 Overview
NON-GAAP FINANCIAL PERFORMANCE Y-O-Y: Q1 2019 Overview [$ m, except EPS] Q1 2019 Q1 2018 Δ COMMENTS Revenues 461.4 431.7 +6.9% ▪ Reported revenue +6.9%, organic growth +5.5% Operating Profit 62.3 52.9 +17.8% ▪ Operating profit up +17.8% Operating Margin (%) 13.5% 12.3% +125 bps ▪ Operating margin +1
Slide 12: Q1 2019 Revenue Bridge
Q1 2019 Revenue Bridge Q1 2019 DRIVERS Q1 2019 Revenue Growth Y-o-Y ▪ Reported revenue +6.9% Organic Currency Portfolio Total ▪ Organic revenue +5.5%, +5.5% -4.6% +6.0% +6.9% – BSI +5.5% organic – BEST +5.4% organic (net of intercompany eliminations) Q1 2019 Revenue Bridge [$M] ▪ Acquisitions add +6
Slide 13: Q1 2019 Non-GAAP Results Y-o-Y
Q1 2019 Non-GAAP Results Y-o-Y [$ m, except EPS] Q1 2019 Q1 2018 Δ COMMENTS Total Revenues 461.4 431.7 +6.9% ▪ Gross margin +140 bps, driven Gross Profit 225.5 205.0 +10% by higher revenues, operational Margin (% of revenues) 48.9% 47.5% +140 bps improvements and FX tailwind SG&A -116.8 -108.9 +7% ▪
Slide 14: Q1 2019 Cash Flow Y-o-Y
Q1 2019 Cash Flow Y-o-Y [$ m] Q1 2019 Q1 2018 Δ COMMENTS GAAP Net Income 30.7 27.4 +3.3 ▪ Q1 2019 free cash flow of +$3.6M, down -$31.7M: Depreciation & amortization 19.0 15.8 +3.2 – Higher net income Changes in working capital* -26.0 -9.7 -16.3 – Offset by higher working capital, reduction in Other
Slide 15: FY 2019 Outlook
FY 2019 Outlook 15
Slide 16: Raising FY 2019 Guidance
Raising FY 2019 Guidance Updated FY 2019 Guidance 2019 ASSUMPTIONS ▪ Organic revenue growth: Revenue Growth y-o-y +7% to +8% +4.5% to +5.5% ▪ Acquisition revenue growth: approximately +5.0% Non-GAAP Operating +90 bps to +120 bps ▪ Constant currency revenue Margin Expansion y-o-y(1) growth: +9.5% to
Slide 17: Appendix
Appendix 17
Slide 18: Q1 2019 GAAP Results Y-o-Y
Q1 2019 GAAP Results Y-o-Y [$M, except EPS] Q1 2019 Q1 2018 Δ Total Revenues 461.4 431.7 +7% Gross Profit 214.7 199.4 +8% Margin (% of sales) 46.5% 46.2% SG&A -120.1 -110.3 +9% (% of revenues) 26.0% 25.6% R&D -46.4 -43.2 +7% (% of revenues) 10.1% 10.0% Operating Income 41.9 38.1 +10% (% of revenues)
Slide 19: Reconciliation of GAAP and Non-GAAP Results Y-o-Y
Q1 2019 Reconciliation of GAAP and Non-GAAP Results Y-o-Y [$M, except EPS] Q1 2019 Q1 2018 GAAP Operating Income 41.9 38.1 Restructuring Costs 4.0 3.5 Acquisition-Related Costs 4.9 1.0 Purchased Intangible Amortization 10.1 6.8 Other Costs 1.4 3.5 TOTAL 20.4 14.8 Non-GAAP Operating Income 62.3 52.9
Slide 20: Balance Sheet
Balance Sheet [$M] Mar 31, 2019 Dec 31, 2018 Mar 31, 2018 Total Assets 2,242.5 2,128.6 1,830.5 Working Capital* 775.7 762.3 726.9 Intangibles, Net & Other 631.2 553.7 320.0 Long-Term Assets [$M] Mar 31, 2019 Dec 31, 2018 Mar 31, 2018 Cash, Cash Equivalents & 298.8 322.4 283.9 Short-term Investments
Slide 21: BSI and BEST GAAP Performance Y-o-Y
Q1 2019 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Y-o-Y [$ m] Q1 2019 Q1 2018 Δ REVENUE Scientific Instruments (BSI) 416.8 387.0 +8% Organic Revenue Growth (%) +5.5% +3.8% Energy & Supercon Technologies (BEST) 47.8 45.6 +5% Corporate Eliminations -3.2 -0.9 Energy & Supercon Technologies (B