Bruker Corporation · NASDAQ:BRKR
Bruker — Q4 2021 Earnings Presentation
32 slides from Bruker's earnings presentation, Feb 11, 2022
Slide 1: Q4 2021 Earnings Presentation
BRUKER CORPORATION (NASDAQ: BRKR) Q4 2021 Earnings Presentation February 11, 2022 Frank H. Laukien, President & CEO Gerald Herman, Executive Vice President & Chief Financial Officer Justin Ward, Senior Director, Investor Relations & Corporate Development
Slide 2: Safe Harbor Statement
BRUKER CORP ORATI ON Safe Harbor Statement 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 193
Slide 3: Q4 2021 & FY 2021 Business Update
Q4 2021 & FY 2021 Business Update 3
Slide 4: Q4 2021: Continued Strong Revenue Growth on Solid Demand for our Differentiated Products and Solutions
Q4 2021 BUSINESS UPDATE Q4 2021: Continued Strong Revenue Growth on Solid Demand for our Differentiated Products and Solutions Q4 2021 Performance Year-over-Year Q4 Financials Revenues [$M] ❖ Revenue increased $56.0M, or +8.9% ▪ Organic growth of +11.4%, with BSI up +11.8% and BEST up +6.8% 683.5 62
Slide 5: FY 2021: Excellent Financial Progress with Strong Revenue Growth, Margin Expansion, EPS Growth and ROIC Expansion
FY 2021 BUSINESS UPDATE FY 2021: Excellent Financial Progress with Strong Revenue Growth, Margin Expansion, EPS Growth and ROIC Expansion FY 2021 Performance Year-over-Year FY 2021 Financials Revenues [$M] ❖ Revenue increased $430.4M, or +21.7% ▪ Organic growth of +19.1%, with BSI up +19.4% and BEST
Slide 6: Constant Currency FY 2021 Revenue Performance Year-over-Year
GROUP OVERVIEW Constant Currency FY 2021 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN up mid teens %, on strengthened customer demand and installations ▪ BIOSPIN systems up strongly, including four GHz-class NMR systems ▪ Aftermarket and software revenue higher Bruker CALID G
Slide 7: Constant Currency FY 2021 Revenue Performance Year-over-Year
GROUP OVERVIEW Constant Currency FY 2021 Revenue Performance Year-over-Year(1) Bruker NANO Group ▪ NANO up in the mid 20%, with strong industrial research and academic demand ▪ X-Ray, Nano Surfaces and Nano Analysis tools with significant step-up ▪ Microelectronics and semiconductor metrology higher
Slide 8: Expanding Proteomics Strategy with Majority Investment in PreOmics
PROJECT ACCELERATE PROTEOMICS INITIATIVE Expanding Proteomics Strategy with Majority Investment in PreOmics ❖ PreOmics GmbH (Munich, Germany) develops, makes and sells innovative sample preparation and automation tools and consumables for unbiased, deep proteomics by mass spectrometry ❖ Bruker €13.5
Slide 9: January 2022 Acquisitions of Prolab and PepSep Augment Multiomics Solutions
PROJECT ACCELERATE PROTEOMICS INITIATIVE January 2022 Acquisitions of Prolab and PepSep Augment Multiomics Solutions Prolab specializes in low-flow, high precision liquid chromatography PepSep specializes in nanoflow liquid technology and systems chromatography (nanoLC) columns and components to opt
Slide 10: Innovation and Multiyear Transformation Delivering Shareholder Value
TRANSFORMATION UPDATE Innovation and Multiyear Transformation Delivering Shareholder Value Accelerated Revenue Growth & Margin Expansion, With Top-Tier ROIC Revenue Growth Acceleration Significant non-GAAP Operating Non-GAAP EPS DD CAGR Margin expansion, ROIC >20% $2.10 $2.4B 28% ROIC $2.1B $2.0B $1
Slide 11: Q4 2021 & FY 2021 Financial Update
Q4 2021 & FY 2021 Financial Update 11
Slide 12: Q4 2021 Non-GAAP Financial Performance
Q4 2021 YEAR-OVER-YEAR COMPARISON Q4 2021 Non-GAAP Financial Performance [$ m, except EPS] Q4 2021 Q4 2020 Δ Comments (year-over-year) Revenues $683.5 $627.5 +8.9% Operating Income $143.8 $141.1 +1.9% ▪ Reported revenue up +8.9%, organic revenue up +11.4% Operating Margin (%) 21.0% 22.5% -150 bps de
Slide 13: Q4 2021 Revenue Bridge
NON-GAAP FINANCIAL PERFORMANCE Q4 2021 Revenue Bridge Q4 2021 Revenue Performance Year-over-Year Q4 2021 DRIVERS (year-over-year) Organic Currency Portfolio Total ▪ Reported revenue up +8.9% +11.4% -2.8% +0.3% +8.9% ▪ Organic revenue up +11.4% Q4 2021 Revenue Bridge [$M] ✓ BSI up +11.8% organic +$71
Slide 14: Q4 2021 Non-GAAP Results Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE Q4 2021 Non-GAAP Results Year-over-Year [$ m, except EPS] Q4 2021 Q4 2020 Δ Comments (year-over-year) Total Revenues 683.5 627.5 +8.9% ▪ Gross margin down -50 bps due to capacity Gross Profit 350.2 324.4 +8.0% Margin (% of revenues) 51.2% 51.7% -50 bps ramp, unfavorabl
Slide 15: FY 2021 Revenue Bridge
NON-GAAP FINANCIAL PERFORMANCE FY 2021 Revenue Bridge FY 2021 Revenue Performance Year-over-Year FY 2021 DRIVERS (year-over-year) Organic Currency Portfolio Total ▪ Reported revenue up +21.7% +19.1% +2.2% +0.4% +21.7% ▪ Organic revenue up +19.1% FY 2021 Revenue Bridge [$M] ✓ BSI up +19.4% organic, w
Slide 16: FY 2021 Non-GAAP Results Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE FY 2021 Non-GAAP Results Year-over-Year [$ m, except EPS] FY 2021 FY 2020 Δ Comments (year-over-year) Total Revenues 2,417.9 1,987.5 +21.7% ▪ Gross margin up +240 bps primarily Gross Profit 1,235.0 968.0 +27.6% Margin (% of revenues) 51.1% 48.7% +240 bps driven by high
Slide 17: FY 2021 Cash Flow Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE FY 2021 Cash Flow Year-over-Year [$ m] 2021 2020 Δ Comments (year-over-year) GAAP Net Income 280.6 161.4 +119.2 FY 2021 free cash flow $190.4M, compared to Depreciation & amortization 89.1 80.4 +8.7 record $235.0M in FY 2020: Changes in working capital* (143.8) (41.8)
Slide 18: FY 2022 Outlook
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Slide 19: FY 2022 Outlook
FY 2022 GUIDANCE FY 2022 Outlook FY 2022 Assumptions FY 2022 Guidance Year-over-year ▪ Organic revenue growth: +6 to +8% Revenue Growth +5% to +7% ▪ FX revenue headwind: approximately -2% ▪ Acquisitions revenue tailwind: ~1% Non-GAAP Operating Margin +30 bps to +60 bps Expansion(1) ▪ Non-GAAP tax ra
Slide 20: Appendix
Appendix 20
Slide 21: Q4 2021 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth
APPENDIX Q4 2021 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth [$M] Q4 2021 Q4 2020 Revenue as of the prior comparable period 627.5 599.9 Non-GAAP components: Acquisitions and divestures 1.8 2.6 Organic 71.6 (2.4) Currency (17.4) 27.4 Revenue as of the current period 683.5
Slide 22: Q4 2021 GAAP Results Year-over-Year
APPENDIX Q4 2021 GAAP Results Year-over-Year [$M, except EPS] Q4 2021 Q4 2020 Δ Total Revenues 683.5 627.5 +8.9% Gross Profit 341.6 313.0 +9.1% Margin (% of revenue) 50.0% 49.9% SG&A (153.3) (130.4) +17.6% (% of revenues) 22.4% 20.8% R&D (58.1) (57.1) +1.8% (% of revenues) 8.5% 9.1% Operating Income
Slide 23: Q4 2021 Reconciliation of GAAP and Non-GAAP Results Year-over-Year
APPENDIX Q4 2021 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] Q4 2021 Q4 2020 GAAP Operating Income 125.4 112.8 Restructuring Costs 3.0 10.1 Acquisition-Related Costs 3.0 3.7 Purchased Intangible Amortization 10.2 8.9 Other Costs 2.2 5.6 TOTAL 18.4 28.3 Non-GAAP Operat
Slide 24: FY 2021 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth
APPENDIX FY 2021 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth [$M] FY 2021 FY 2020 Revenue as of the prior comparable period 1,987.5 2,072.6 Non-GAAP components: Acquisitions and divestures 8.1 10.5 Organic 379.0 (125.0) Currency 43.3 29.4 Revenue as of the current period
Slide 25: FY 2021 GAAP Results Year-over-Year
APPENDIX FY 2021 GAAP Results Year-over-Year [$M, except EPS] FY 2021 FY 2020 Δ Total Revenues 2,417.9 1,987.5 +21.7% Gross Profit 1,209.6 939.8 +28.7% Margin (% of revenue) 50.0% 47.3% SG&A (561.2) (468.6) +19.8% (% of revenues) 23.2% 23.6% R&D (220.8) (198.0) +11.5% (% of revenues) 9.1% 10.0% Oper
Slide 26: FY 2021 Reconciliation of GAAP and Non-GAAP Results Year-over-Year
APPENDIX FY 2021 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] FY 2021 FY 2020 GAAP Operating Income 413.3 248.3 Restructuring Costs 8.2 15.8 Acquisition-Related Costs 6.9 3.2 Purchased Intangible Amortization 37.4 35.7 Other Costs 4.4 14.2 TOTAL 56.9 68.9 Non-GAAP Oper
Slide 27: Q4 2021 Cash Flow Year-over-Year
APPENDIX Q4 2021 Cash Flow Year-over-Year [$M] Q4 2021 Q4 2020 Δ Comments GAAP Net Income 76.0 71.3 +4.7 Q4 2021 free cash flow of $110.2M, compared Depreciation & amortization 23.0 21.7 +1.3 to $174.2M in Q4-20: Changes in working capital* (26.7) 38.9 -65.6 ▪ Higher net income Other items 66.3 71.1
Slide 28: Balance Sheet
APPENDIX Balance Sheet [$M, except EPS] Dec 31, 2021 Dec 31, 2020 Total Assets 3,650.0 3,049.0 Working Capital* 979.6 893.0 Goodwill, Intangibles, Net & Other Long-Term Assets 772.1 728.5 [$M, except EPS] Dec 31, 2021 Dec 31, 2020 Cash, Cash Equivalents & Short-term Investments 1,168.2 731.8 Financi
Slide 29: Q4 2021 BSI and BEST GAAP Performance Year-over-Year
APPENDIX Q4 2021 BSI and BEST GAAP Performance Year-over-Year [$M] Q4 2021 Q4 2020 Δ REVENUE Scientific Instruments (BSI) 629.2 574.7 +10% Organic Revenue Growth (%) +11.8% +0.2% Energy & Supercon Technologies (BEST) 57.8 54.7 +6% Corporate Eliminations (3.5) (1.9) Energy & Supercon Technologies (BE
Slide 30: FY 2021 BSI and BEST GAAP Performance Year-over-Year
APPENDIX FY 2021 BSI and BEST GAAP Performance Year-over-Year [$M] FY 2021 FY 2020 Δ REVENUE Scientific Instruments (BSI) 2,208.1 1,810.0 +22% Organic Revenue Growth (%) +19.4% -5.5% Energy & Supercon Technologies (BEST) 223.8 189.5 +18% Corporate Eliminations (14.0) (12.0) Energy & Supercon Technol
Slide 31: FY 2021 Return on Invested Capital
APPENDIX FY 2021 Return on Invested Capital [$M, except EPS] FY 2021 FY 2020 Δ Non-GAAP Operating Income $470.2 $317.2 +48.2% Non-GAAP Income Tax Provision (126.1) (82.9) +52.1% Non-GAAP Operating Income after Tax 344.1 234.3 +46.9% Average Total Invested Capital: Average Long-Term Debt 1,033.1 827.
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