Bruker Corporation · NASDAQ:BRKR
Bruker — Bruker BioSciences — Merger or Acquisition (June 2006)
30 slides from Bruker's merger presentation, Jun 5, 2006
Slide 1: Presentation for BRKR Shareholders on Planned Acquisition of Bruker Optics Inc.
BRUKER Bruker BioSciences Corporation (BRKR) Presentation for BRKR Shareholders on Planned Acquisition of Bruker Optics Inc. June 5 & 6, 2006 Frank Laukien, CEO Bill Knight, CFO Brian Monahan, Controller Brtiker Optics: Dirk Laukien, CEO Dan Klevisha, VP
Slide 2: Safe Harbor Statement of BRKR
CoS. Safe Harbor Statement of BRKR ae 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 herein are bas
Slide 3: Overview of Presentation
4 7 Oe) BRUKER Overview of Presentation C8ES ° Transaction Overview and Rationale e Bruker Optics Highlights ¢ Bruker BioSciences Today & Tomorrow
Slide 4: Transaction Overview
A er) Transaction Overvie r i verview SrGgae BRKR becomes a >$400M revenue leading provider of high-performance analytical and life-science systems for molecular and materials research, and applications-driven robust analytical solutions for industry. Purchase price for Bruker Optics: $135M > Cash:
Slide 5: Transaction Overview: Accretion, Process & Schedule
Transaction Overview epGaen Deal is Accretive: ‘orical pro-forma EPS accretion of $0.01-$0.02 FY 2005 FY 2004 FY 2003 EPS, as reported 50.04 ($0.09) ($0.22) EPS, pro forma $0.06 (0.08) (50.27) e Going forward, BRKR expects accretion to GAAP EPS: e 2006 by approx. $0.01 (Non-GAAP by apes, $0.03) © 20
Slide 6: Transaction Rationale
- 4 Oe) Transaction Rationale > Increased market access = additional >$500M accessible markets, >$80M revenue = access to fast growth markets PAT, pharma forensics = better demand diversification, higher industrial revenue > Expanded technology base and product line = adds molecular spectroscopy tec
Slide 7: Bruker Optics Highlights
‘tics Highlights epGaen FT-IR. FT-NIR Raman TD-NMR
Slide 8: Management
Bruker Optics Management Coe) BrGunr Name and Position Years in Industry Years at Bruker Dirk D. Laukien, Ph.D. 15+ 15+ Chairman, President and CEO ‘Arno Simon, Ph.D. 25+ 25+ Vioe President, R & D, Director Optik GmbH Daniel Klevisha 15+ 10 Vice President, Marketing & Sales Qian Wang, Ph.D. 15+ 10 V
Slide 9: Key Markets
Bruker Optics Key Markets (sz sal 7 Leading technology for molecular spectroscopy > and materials research Developing advanced measurements into BRUKER Bruker Optics accessible markets: >$500M p.a.
Slide 10: Bruker Optics Key Markets
. Coe) Bruker Optics Key Markets ae Enabling real-time science-based contro! of pharmaceutical manufacturing process om: Sn 3 Analytical Technologies (PAT) Chemical, Polymer Analysis Rapid analysis for Food, Feed and Agricultural Analysis
Slide 11: Bruker Optics Customers Include
Bayer Gsk Pfizer NIH NRC Life Science Bayer 6) Analytical Battelle Corning Exxon Bailelie) 1 CORNING Bruker Optics Customers Include: aTece COD Process In addition, Bruker Optics has a significant presence in most large academic and national research laboratories. =
Slide 12: Leading Technologies
Bruker Optics Leading Technologies epGaen >30 years of Molecular Spectroscopy Leadership: 1974 Delivery of the first FT-IR spectrometer 1976 Modular vacuum research FT-IR spectrometer 1981 First FT-IR spectrometer for industrial routine 1984 First FT-IR microscope 1985 IFS 120 - Highest resolution F
Slide 13: Products: FT-IR, Raman and Near Infrared Spectrometers
Bruker Optics Products BRORER (eS) FT-IR and Raman Spectrometers Applications: « Routine Quality Control Applications * Academic and Industrial R&D * Drug Discovery (Proteomics) Near Infrared Spectrometers cat Applications: aa Routine Quality Control Applications « Pharmaceutical Raw Material ID, Ta
Slide 14: Products: Time Domain NMR and Microspectroscopy
Bruker Optics Products BROKER (eS) aa A Time Domain NMR Analyzers a 3 Applications: | ie + Food, Edible Oil and Grain Analysis QC * Textile Analysis * Live Animal Testing for Body Fat Studies ". Microspectroscopy Solutions > Based on FT-IR and Raman Microscopy Applications: Contamination Analysis Fo
Slide 15: Products: Process Analyzers
Bruker Optics Products BRORER () Process Analyzers > Based on FT-IR, FT-NIR and Raman Systems Real-time QC during all stages of manufacturing: © Chemical Industry * Petrochemical industry * Pharma PAT (Process Analytical Technology)
Slide 16: New Opportunities: Pharma/biotech PAT
Bruker Optics New Opportunities ERORER Pharma/biotech PAT: Process Analytical Technologies 4 Te On-line
Slide 17: New Opportunities: Pharma PAT
Bruker Optics New Opportunities Ersene Factory Shift - New Prescription For Drug Makers: Update the Plants After Years of Neglect, Industry Focuses on Manufacturing; FDA Acts as a Catalyst Pharma/biotech PAT: “Enabling real-time, science based process control to improve product quality, reduce risk
Slide 18: New Opportunities: Pharma Forensics
Bruker Optics New Opportuni “Pharma Forensics”: Chinese SFDA Battling Fake Drugs Front page Wall Street Journal Article in 2006. Bruker Optics SFDA order in 2006: © 300+ Unit Order valued at >$15M in revenue e Largest project of its kind in China ¢ Largest single order for Bruker Optics * Good chanc
Slide 19: Revenue
Bruker Optics Revenue BRORER CO Strong organic revenue growth in 2001-2005: $742 STB7 CAGR of 23% (in $M) $60.0 @¢¢e2s 8s 8
Slide 20: Margins & Income
Bruker Optics Margins & Income BROKER (x [Bl Adjusted EBITDA Hl operating income inet income (in $M) =m “em 78 701 7005 2005 ‘01 -'05 % of Revenue CAGR Adjusted EBITDA 19% 4% Operating Income 15% 46% Net Income 8% 47%
Slide 21: Bruker Optics Adjusted EBITDA
>) BROKER Bruker Optics Adjusted EBITDA (in $M) 2001 2002 ~—-2003_~=—«2004 2005 Operating Income $27 $ 37 $ 40 $ 77 §$ 120 Depreciation and amortization 05 08 47 14 49 Write-down of demonstration equipment 03 05 42 14 12 Adjusted EBITDA $35 S$ 50 $ 69 $405 S$ 154 USE OF NON-GAAP FINANCIAL MEASURES:
Slide 22: A leading provider of high-performance analytical and life-science systems
A leading provider of e high-performance analytical and life- science systems for molecular and materials research, ¢ applications-driven robust analytical solutions for industry
Slide 23: Post-Acquisition Industrial Markets with Strong Marketing Synergies
Post-Acquisition Industrial Markets with Strong Marketing Synergies Go). BRUKER )) Market & Application Industrial Customers: ‘BDAL ‘BAXS Drug Discovery & xt Development pharma, biotch & BOO. GOAL noes (DDD) diagnostics Responsibility in DOD market Process Analytical BoPTemeiet BOPTIomaat Technology
Slide 24: BRKR Stand-Alone Trends
BRKR Stand-Alone Trends Lae Q1-06_ 2005 _ 2004 _ * Revenue $74.4M $297.6M $284.4M © Op. Income $3.0M* $10.6M ($1.1M) * Adjusted EBITDA $6.6M $26.9M $16.8M * Net Income $1.8M* $3.6M ($7.8M) * EPS $0.02* $0.04 ($0.09) (* Non-GAAP Operating Income, Net Income and EPS in Q1-06 exclude acquisition relate
Slide 25: BRKR 2005 Actual vs. Pro-Forma
BRKR 2005 Actual vs. Pro-Forma = S05" 2005 2005 Pro-Forma Actual ____ Combined *« Revenue $297.6M $372.3M © Op. Income $10.6M $21.7M ¢ Adjusted EBITDA $26.9M $41.1M ° Net Income $3.6M $5.6M ° EPS $0.04 $0.06 © Op. Cash Flow $42.2M $49.7M Unaudited Pro-Forma Combined Financials give effect to the acq
Slide 26: BRKR Adjusted EBITDA
BRUKER BRKR Adjusted EBITDA (in $M) 2005 1-06 2005 2004 | Pro-Forma Actual __Actual__Actual_| Combined Operating income $ 18 $ 106 $ (14)| $ 217 Depreciation and amortization 24 86 95 10.5 Write-down of demonstration equipment 15 77 84 89 Acquisition related charges 12 : : : Adjusted EBITDA $ 66 $ 2
Slide 27: BRKR Drivers & Goals 2006-2008
BRKR Drivers & Goals 2006-2008 epGaen >» Innovation: even more significant driver within our markets >» Growth: above industry-standard (organic and bolt-ons) > Gross margin initiative 2006-2008: >» RTC and more in-house core technologies > Higher margin after-market revenue >» More complete solutio
Slide 28: BRKR Growth & Strategy
BRKR Growth & Strategy epGaen 1995: BDAL was private European $30M company e Bruker Daltonics faced stagnating NBC detection markets e $5.6M U.S. revenue, virtually no Asian revenue e $7.5M life-science revenue (25%), 3 products ¢ 1997: acquired $50M AXS business from Siemens: GM<35%, systems integr
Slide 29: BRKR Growth & Strategy
BRKR Growth & Strategy epGaen BRKR with Bruker Optics in 2006 and beyond: >$400M revenue > Leverage marketing and distribution synergies of BRKR > Maintain very innovative R&D and engineering processes: differentiated high-performance, high quality products with excellent brand recognition > Strong
Slide 30: Searchable text section of graphics shown above
Searchable text section of graphics shown above [LOGO] Bruker BioSciences Corporation (BRKR) [GRAPHIC] Presentation for BRKR Shareholders on Planned Acquisition of Bruker Optics Inc. June 5 & 6, 2006 [GRAPHIC] Bruker BioSciences: Frank Laukien, CEO Bill Knight, CFO Brian Monahan, Controller Bruker O
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