Bruker Corporation · NASDAQ:BRKR

Bruker — Q4 2015 Earnings Presentation

25 slides from Bruker's earnings presentation, Feb 10, 2016

1. Slide 1: Q4 and FY 2015 Earnings Presentation

   Bruker Corporation (NASDAQ: BRKR) Q4 and FY 2015 Earnings Presentation Frank Laukien, President & CEO Anthony Mattacchione, SVP & Interim CFO February 10, 2016 Joshua Young, VP, IR & Corporate Development 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: Q4-15 & FY-2015 Business Update

   Q4-15 & FY-2015 Business Update © Bruker Corporation 3

4. Slide 4: Strong Q4-15 performance drives margin expansion and free cash flow generation

   Strong Q4-15 performance drives margin expansion and free cash flow generation Q4-2015 Performance Q4 Financials Revenues [$ m] -6%  Revenue decline of -$30m, or -6% y-o-y − FX headwinds lower revenue -8% y-o-y 508 478  Organic revenue growth of +2.5% y-o-y − Europe & Americas strongest regions 

5. Slide 5: Improvement in FY-15 results reflects initial benefits from Transformation

   Improvement in FY-15 results reflects the initial benefits from our three-year Transformation FY-2015 Performance Full Year Financials Revenues [$ m] -10%  Revenue decline of -10% y-o-y, due to FX headwind (-10%) and changes in portfolio (-2%)  After organic revenue decline in FY-14, return to 1,8

6. Slide 6: Group Overview: FY 2015 Performance

   GROUP OVERVIEW: FY 2015 Performance $547M revenue Bruker BIOSPIN Group  Strong revenue growth for Nuclear Magnetic Resonance (NMR) in H2 2015 after slow start to the year  Preclinical imaging declines in both revenues and new order bookings  NMR posts double-digit growth in new order bookings  N

7. Slide 7: Group Overview: FY 2015 Performance

   GROUP OVERVIEW: FY 2015 Performance $460M revenue Bruker NANO Group  Mixed top-line performance as strength in academic customer base and China is offset by weakness from industrial and semi customers  AXS Division generates mid-single digit organic revenue growth and strong year-over-year profita

8. Slide 8: 2016 Key Priorities

   2016 Key Priorities Continue Margin Expansion as we transition from our three-year Transformation phase to our next phase of Operational & Commercial Excellence Strengthen systems and management insights by harmonizing business processes and ERP platforms Accelerate profitable growth in four strateg

9. Slide 9: Q4-15 & FY-2015 Financial Update

   Q4-15 & FY-2015 Financial Update © Bruker Corporation 9

10. Slide 10: Q4-2015 Overview

    NON-GAAP FINANCIAL PERFORMANCE: Q4-2015 Overview [$ m, except EPS] Q4-2015 Q4-2014 Δ COMMENTS Revenues 478.2 508.0 -6%  Significantly higher non- GAAP operating margin and Operating Income 83.7 63.7 +31% free cash flow achieved Margin (%) 17.5% 12.5%  Growth of non-GAAP operating income flowed EPS

11. Slide 11: Q4-2015 revenue bridge

    Q4-2015 revenue bridge Q4-2015 DRIVERS Q4-2015 Revenue for Bruker Corp.  Organic revenue growth of +2.4% driven by Organic Currency Portfolio Total strong performance in BEST Segment and +2.5% -7.8% -0.6% -5.9% growth in CALID Group  Strong US dollar continues to drive most Q4-2015 Revenue Bridge

12. Slide 12: Q4 2015 Non-GAAP Results

    Q4 2015 Non-GAAP Results [$ m, except EPS] Q4 2015 Q4 2014 Δ COMMENTS Total Revenues 478.2 508.0 -6%  Gross margin improvement driven by Gross Profit 222.8 223.2 NM positive product mix, Margin (% of revenues) 46.6% 43.9% pricing gains, and SG&A -102.4 -117.9 -13% restructuring actions (% of revenu

13. Slide 13: FY-2015 revenue bridge

    FY-2015 revenue bridge FY-2015 DRIVERS FY-2015 Revenue for Bruker Corp.  Organic revenue growth of +2.1% primarily Organic Currency Portfolio Total driven by CALID Group +2.1% -10.2% -2.1% -10.2%  FX reduces revenue by -$184M  Portfolio reflects CAM FY-15 Revenue Bridge [$ m] divestitures and par

14. Slide 14: FY 2015 Non-GAAP Results

    FY 2015 Non-GAAP Results [$ m, except EPS] FY 2015 FY 2014 Δ COMMENTS Total Revenues 1,623.8 1,808.9 -10%  Approximately half of Gross Profit 751.0 807.7 -7% 150 bps improvement in Margin (% of revenues) 46.2% 44.7% gross margin related to better operational and SG&A -390.1 -449.1 -13% commercial p

15. Slide 15: FY 2015 Cash Flow Statement

    FY 2015 Cash Flow Statement [$ m] FY 2015 FY 2014 Δ COMMENTS Net Income 104.9 59.6 +45.3  Free cash flow generated by higher earnings, Depreciation & amortization 53.3 59.7 -6.4 reduction in working capital, and increase in Changes in working capital* 38.9 -1.6 +40.5 customer deposits Other 32.1 -3

16. Slide 16: 2016 Outlook

    2016 Outlook © Bruker Corporation 16

17. Slide 17: FY-2016 Guidance

    FY-2016 Guidance FY-2016 Guidance 2016 ASSUMPTIONS  FY 2016 tax rate: Organic Revenue Growth Approximately +3% 25%-28%  Fully diluted share count: 163M-165M Non-GAAP Operating Approximately +100 bps shares Margin Expansion y-o-y  Capex: ~$50M Non-GAAP EPS $0.97 - $1.02  Current currency assumpti

18. Slide 18: Appendix

    Appendix © Bruker Corporation 18

19. Slide 19: Q4 2015 GAAP Results

    Q4 2015 GAAP Results [$ m, except EPS] Q4 2015 Q4 2014 Δ Total Revenues 478.2 508.0 -6% Gross Profit 211.5 215.8 -2% Margin (% of sales) 44.2% 42.5% SG&A -103.0 -118.5 -13% (% of revenues) 21.5% 23.3% R&D -36.7 -41.6 -12% (% of revenues) 7.7% 8.2% Operating Income 70.7 44.5 +59% (% of revenues) 14.8

20. Slide 20: Q4 2015 Reconciliation of GAAP and Non-GAAP Results

    Q4 2015 Reconciliation of GAAP and Non-GAAP Results [$ m, except EPS] Q4 2015 Q4 2014 GAAP Operating Income 70.7 44.5 Restructuring Costs 8.1 6.8 Acquisition-Related Costs -3.3 1.0 Purchased Intangible Amortization 5.3 5.1 Other Costs 2.9 6.3 TOTAL 13.0 19.2 Non-GAAP Operating Income 83.7 63.7 Non-G

21. Slide 21: FY 2015 GAAP Results

    FY 2015 GAAP Results [$ m, except EPS] FY 2015 FY 2014 Δ Total Revenues 1,623.8 1,808.9 -10% Gross Profit 708.6 763.3 -7% Margin (% of sales) 43.6% 42.2% SG&A -392.2 -451.0 -13% (% of revenues) 24.2% 24.9% R&D -145.7 -174.2 -16% (% of revenues) 9.0% 9.6% Operating Income 145.7 105.4 +38% (% of reven

22. Slide 22: FY 2015 Reconciliation of GAAP and Non-GAAP Results

    FY 2015 Reconciliation of GAAP and Non-GAAP Results [$ m, except EPS] FY 2015 FY 2014 GAAP Operating Income 145.7 105.4 Restructuring Costs 29.3 36.1 Acquisition-Related Costs -4.7 4.0 Purchased Intangible Amortization 20.8 20.2 Other Costs 24.1 18.7 TOTAL 69.5 79.0 Non-GAAP Operating Income 215.2 1

23. Slide 23: Q4 2015 Cash Flow Statement

    Q4 2015 Cash Flow Statement [$ m] Q4 2015 Q4 2014 Δ Net Income 62.0 26.5 +35.5 Depreciation & amortization 13.3 12.1 1.2 Changes in working capital* 27.5 -4.4 31.9 Other 46.8 35.1 11.7 Operating cash flow 149.6 69.3 +80.3 Capital expenditures -11.4 -7.1 -4.3 Free cash flow 138.2 62.2 +76.0 * WC = (A

24. Slide 24: Balance sheet

    Balance sheet [$ m] Dec 31, 2015 Dec 31, 2014 Δ Total Assets 1,730.9 1,864.8 -7% Working Capital* 584.6 694.6 -16% Intangibles, Net & Other Long-Term 268.2 248.6 +8% Assets [$ m] Dec 31, 2015 Dec 31, 2014 Δ Cash, Cash Equivalents & Short-term 468.3 497.5 -6% Investments Financial Debt 266.7 355.0 -2

25. Slide 25: BSI and BEST GAAP Performance

    Q4-15 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q4 2015 Q4 2014 Δ REVENUE Scientific Instruments (BSI) 438.9 475.8 -8% Organic Revenue Growth (%) 0.0% 0.6% Energy & Supercon Technologies (BEST) 42.5 36.7 +16% Organic Revenue Growth (%) +31.7% -14.1% Corporate Eliminations -3.2 -4.5 T

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