Slide 1: Bruker Corporation Q2 2019 Earnings Presentation
Bruker Corporation (Nasdaq: BRKR) Q2 2019 Earnings Presentation Frank Laukien, President & CEO Gerald Herman, Chief Financial Officer August 1, 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: Q2 2019 & H1 2019 Business Update
Q2 2019 & H1 2019 Business Update 3
Slide 4: Q2 2019: Good revenue growth, strong margin expansion and EPS growth
Q2 2019: Good revenue growth, strong margin expansion and EPS growth Q2 2019 Performance Year-over-Year Q2 Financials Revenues [$M] +10.5% Revenues increase +$47M, or +10.5% −Organic growth +4.8%, with BSI up +3.4%, and BEST up +18.2% 490.2 443.7 −Acquisitions add +8.7% −Constant currency growth +
Slide 5: H1 2019: Solid revenue growth, strong margin expansion and EPS growth
H1 2019: Solid revenue growth, strong margin expansion and EPS growth H1 2019 Performance Year-over-Year H1 2019 Financials Revenues [$M] +8.7% Revenues increase +$76M, or +8.7% −Organic growth +5.1%, with BSI up +4.4%, and 951.6 BEST up +11.6% 875.4 −Acquisitions add +7.4% −Constant currency grow
Slide 6: H1 2019 Revenue Performance Year-over-Year
GROUP OVERVIEW: H1 2019 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group BIOSPIN up mid-single digits, with growth in systems revenue and aftermarket, and contributions from software acquisitions NMR systems revenue grows, including a 1.0 GHz system Preclinical imaging lower compared
Slide 7: H1 2019 Revenue Performance Year-over-Year
GROUP OVERVIEW: H1 2019 Revenue Performance Year-over-Year(1) Bruker NANO Group NANO up double digits, due to acquisitions X-ray business up with solid academic demand Strong growth in nano-analysis tools (e.g. EDS, microXRF) Nano-surface tools grow due to Anasys, JPK and Alicona acquisition
Slide 8: New timsTOF fleX with ESI & MALDI for label-free SpatialOMx
UPDATE ON PROJECT ACCELERATE New timsTOF™ fleX with ESI & MALDI for label-free SpatialOMx™ and unique 4D-Omics workflows SpatialOMx is like a GPS to locate specific cellular sub-populations based on molecular expression of endogenous molecules such as glycans or lipids, …..and then use specific cell
Slide 9: Acquisition of PMOD Technologies Adds PET Molecular Imaging Software
VALUE-ADDED BOLT-ON M&A EXAMPLE Acquisition of PMOD Technologies Adds PET Molecular Imaging Software PMOD is a respected provider of preclinical and molecular imaging research software − Widely used for PET studies in neurology, cardiology and oncology − Applications in molecular quantification an
Slide 10: Bruker Medium-Term Objectives
BRUKER MEDIUM-TERM OBJECTIVES 1. Accelerate revenue growth • Enhance revenue growth with high-margin Project Accelerate initiatives, drive secular to above market CAGR growth opportunities, advance innovative product cycles, develop break-out opportunities • Target 5% - 7% organic revenue CAGR in 20
Slide 11: Q2 2019 & H1 2019 Financial Update
Q2 2019 & H1 2019 Financial Update 11
Slide 12: Q2 2019 Overview
NON-GAAP FINANCIAL PERFORMANCE: Q2 2019 Overview [$ m, except EPS] Q2 2019 Q2 2018 Δ COMMENTS Revenues 490.2 443.7 +10.5% Reported revenue +10.5%, organic growth +4.8% Operating Profit 73.7 58.9 +25.1% Operating profit up +25.1% Operating Margin (%) 15.0% 13.3% +170 bps Operating margin +170 b
Slide 13: Q2 2019 Revenue Bridge
Q2 2019 Revenue Bridge Q2 2019 DRIVERS Q2 2019 Revenue Growth Year-over-Year Reported revenue +10.5% Organic Currency Portfolio Total Organic revenue +4.8%, +4.8% -3.0% +8.7% +10.5% – BSI +3.4% organic – BEST +18.2% organic (net of intercompany eliminations) Q2 2019 Revenue Bridge [$M] Acquisi
Slide 14: Q2 2019 Non-GAAP Results Year-over-Year
Q2 2019 Non-GAAP Results Year-over-Year [$ m, except EPS] Q2 2019 Q2 2018 Δ COMMENTS Total Revenues 490.2 443.7 +10.5% Gross margin up 190 bps on Gross Profit 242.8 211.4 +15% favorable mix, operational Margin (% of revenues) 49.5% 47.6% +190 bps improvements, acquisitions and FX SG&A -120.6 -108.
Slide 15: H1 2019 Revenue Bridge
H1 2019 Revenue Bridge H1 2019 DRIVERS H1 2019 Revenue Growth Year-over-Year Reported revenue +8.7% Organic Currency Portfolio Total Organic revenue +5.1%, +5.1% -3.8% +7.4% +8.7% – BSI +4.4% organic – BEST +11.6% organic (net of intercompany eliminations) H1 2019 Revenue Bridge [$M] Acquisiti
Slide 16: H1 2019 Non-GAAP Results Year-over-Year
H1 2019 Non-GAAP Results Year-over-Year [$ m, except EPS] H1 2019 H1 2018 Δ COMMENTS Total Revenues 951.6 875.4 +8.7% Gross margin up 160 bps, Gross Profit 468.3 416.4 +12% driven by favorable mix, Margin (% of revenues) 49.2% 47.6% +160 bps operational improvements, SG&A -237.4 -217.8 +9% acquisi
Slide 17: H1 2019 Cash Flow Year-over-Year
H1 2019 Cash Flow Year-over-Year [$ m] H1 2019 H1 2018 Δ COMMENTS GAAP Net Income 67.7 58.9 +8.8 H1 2019 free cash outflow of $3.8M, compared to Depreciation & amortization 38.4 32.4 +6.0 cash inflow of $62.4M in H1 2018: Changes in working capital(1) -39.7 5.1 -44.8 – Higher net income Other -41.
Slide 18: FY 2019 Outlook
FY 2019 Outlook 18
Slide 19: FY 2019 Guidance Unchanged
FY 2019 Guidance Unchanged FY 2019 Guidance(1) 2019 ASSUMPTIONS Organic revenue growth: Revenue Growth y-o-y +7% to +8% +4.5% to +5.5% Acquisition revenue growth: approximately +5.0% Non-GAAP Operating +90 bps to +120 bps Constant currency revenue Margin Expansion y-o-y(2) growth: +9.5% to +10
Slide 20: Appendix
Appendix 20
Slide 21: Q2 2019 GAAP Results Year-over-Year
Q2 2019 GAAP Results Year-over-Year [$M, except EPS] Q2 2019 Q2 2018 Δ Total Revenues 490.2 443.7 +11% Gross Profit 230.4 205.2 +12% Margin (% of revenue) 47.0% 46.2% SG&A -124.5 -110.6 +13% (% of revenues) 25.4% 24.9% R&D -48.5 -43.6 +11% (% of revenues) 9.9% 9.8% Operating Income 53.5 48.8 +10% (%
Slide 22: Q2 2019 Reconciliation of GAAP and Non-GAAP Results
Q2 2019 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] Q2 2019 Q2 2018 GAAP Operating Income 53.5 48.8 Restructuring Costs 1.4 0.7 Acquisition-Related Costs 6.2 0.1 Purchased Intangible Amortization 9.9 7.8 Other Costs 2.7 1.5 TOTAL 20.2 10.1 Non-GAAP Operating Income 73
Slide 23: H1 2019 GAAP Results Year-over-Year
H1 2019 GAAP Results Year-over-Year [$M, except EPS] H1 2019 H1 2018 Δ Total Revenues 951.6 875.4 +9% Gross Profit 445.1 404.6 +10% Margin (% of revenue) 46.8% 46.2% SG&A -244.6 -220.9 +11% (% of revenues) 25.7% 25.2% R&D -94.9 -86.8 +9% (% of revenues) 10.0% 9.9% Operating Income 95.4 86.9 +10% (%
Slide 24: H1 2019 Reconciliation of GAAP and Non-GAAP Results
H1 2019 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] H1 2019 H1 2018 GAAP Operating Income 95.4 86.9 Restructuring Costs 5.4 4.2 Acquisition-Related Costs 11.1 1.1 Purchased Intangible Amortization 20.0 14.6 Other Costs 4.1 5.0 TOTAL 40.6 24.9 Non-GAAP Operating Income
Slide 25: Q2 2019 Cash Flow Year-over-Year
Q2 2019 Cash Flow Year-over-Year [$ m] Q2 2019 Q2 2018 Δ COMMENTS GAAP Net Income 37.0 31.5 +5.5 Q2 2019 free cash outflow of $7.4M, compared to Depreciation & amortization 19.4 16.6 +2.8 cash inflow of $27.1M in Q2 2018: Changes in working capital(1) -13.7 14.8 -28.5 – Higher net income Other -32
Slide 26: Balance Sheet
Balance Sheet [$M] Jun 30, 2019 Dec 31, 2018 Jun 30, 2018 Total Assets 2,349.7 2,128.6 1,806.0 Working Capital(1) 818.9 762.3 683.6 Intangibles, Net & Other 586.9 553.7 364.8 Long-Term Assets [$M] Jun 30, 2019 Dec 31, 2018 Jun 30, 2018 Cash, Cash Equivalents & 288.8 322.4 258.7 Short-term Investment
Slide 27: BSI and BEST GAAP Performance Year-over-Year
Q2 2019 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Year-over-Year [$ m] Q2 2019 Q2 2018 Δ REVENUE Scientific Instruments (BSI) 442.4 402.4 +10% Organic Revenue Growth (%) +3.4% +7.1% Energy & Supercon Technologies (BEST) 51.9 42.7 +22% Corporate Eliminations -4.1 -1.4 Energy & Supercon Tech
Slide 28: BSI and BEST GAAP Performance Year-over-Year
H1 2019 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Year-over-Year [$ m] H1 2019 H1 2018 Δ REVENUE Scientific Instruments (BSI) 859.2 789.4 +9% Organic Revenue Growth (%) +4.4% +5.5% Energy & Supercon Technologies (BEST) 99.7 88.3 +13% Corporate Eliminations -7.3 -2.3 Energy & Supercon Techn