Slide 1: Bruker Corporation Q4 2020 Earnings Presentation
Bruker Corporation (Nasdaq: BRKR) Q4 2020 Earnings Presentation Frank Laukien, President & CEO Gerald Herman, Chief Financial Officer February 16, 2021 Miroslava Minkova, Director of Investor Relations & Corporate Development Innovation with Integrity
Slide 2: Safe Harbor Statement
BRUKER CORPORATION 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 1934,
Slide 3: Q4 2020 & FY 2020 Business Update
Q4 2020 & FY 2020 Business Update 3
Slide 4: Q4 2020: Sequential Recovery in Revenues, Margins and EPS
Q4 2020: Sequential Recovery in Revenues, Margins and EPS ➢ Non-GAAP Gross Margin, Operating Margin and EPS Higher Year-Over-Year Q4 2020 Performance Year-over-Year Q4 Financials Revenues [$M] +4.6% ▪ Revenues increase $27.6M, or +4.6% −Organic decline of -0.4%, with BSI flat and BEST down -6.8% 599
Slide 5: FY 2020: Pandemic and Economic Slowdown Drive Dip in Revenue and Earnings in H1
FY 2020: Pandemic and Economic Slowdown Drive Dip in Revenue and Earnings in H1 2020, with Sequential Recovery in H2 2020 ➢ Project Accelerate Initiatives Generate >50% of Revenues in 2020 FY 2020 Performance Year-over-Year FY 2020 Financials Revenues [$M] -4.1% ▪ Revenues decrease $85.1M, or -4.1%
Slide 6: FY 2020 Revenue Performance Year-over-Year
GROUP OVERVIEW: FY 2020 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN down mid single digits, due to COVID-19 customer disruptions and delays, primarily in H1 2020 ▪ NMR and PCI system revenues lower, due to delayed orders and installations ▪ Aftermarket revenue slightly highe
Slide 7: FY 2020 Revenue Performance Year-over-Year
GROUP OVERVIEW: FY 2020 Revenue Performance Year-over-Year(1) Bruker NANO Group ▪ NANO down low teens, due to COVID-19 related academic market slowdown and weakened industrial and industrial research demand ▪ X-ray, Nano-surface and Nano-analysis tools lower with reduced academic and industrial rese
Slide 8: Project Accelerate 2.0: Six Expanded High-Growth Initiatives
PROJECT ACCELERATE 2.0 Faster growth from six expanded high-growth, high-margin initiatives Unbiased Unbiased 4D Proteomics & Proteomics & Consumables, Software, 4D Multiomics, Functional Multiomics Service & Aftermarket Structural Biology Consumables, assays, services, MS and NMR solutions for Biop
Slide 9: Project Accelerate 2.0: timsTOF and GHz-class NMR
PROJECT ACCELERATE 2.0 timsTOF: enabling the transformative power of unbiased 4D proteomics GHz-class NMR: functional structural biology and biomolecular condensates GHz-class NMR capabilities: Large-cohort plasma • Dynamics, function & binding of globular proteins $750M proteomics, PTMs • Intrinsic
Slide 10: Q4 2020 & FY 2020 Financial Update
Q4 2020 & FY 2020 Financial Update 10
Slide 11: Q4 2020 Overview
NON-GAAP FINANCIAL PERFORMANCE: Q4 2020 Overview [$ m, except EPS] Q4 2020 Q4 2019 Δ COMMENTS Revenues $627.5 $599.9 +4.6% ▪ Reported revenue +4.6%, organic Operating Income $141.1 $132.5 +6.5% revenue -0.4% Operating Margin (%) 22.5% 22.1% +40 bps ▪ Operating profit grows +6.5% Non-GAAP EPS $0.58 $
Slide 12: Q4 2020 Revenue Bridge
Q4 2020 Revenue Bridge Q4 2020 Revenue Performance Year-over-Year Q4 2020 DRIVERS ▪ Reported revenue +4.6% Organic Currency Portfolio Total ▪ Organic revenue -0.4% -0.4% +4.6% +0.4% +4.6% – BSI approximately flat organically – BEST down -6.8% organic (net of Q4 2020 Revenue Bridge [$M] intercompany
Slide 13: Q4 2020 Non-GAAP Results Year-over-Year
Q4 2020 Non-GAAP Results Year-over-Year [$ m, except EPS] Q4 2020 Q4 2019 Δ COMMENTS Total Revenues 627.5 599.9 +4.6% ▪ Gross margin +80 bps, despite unfavorable Gross Profit 324.4 305.5 +6.2% FX translation Margin (% of revenues) 51.7% 50.9% +80 bps SG&A -126.2 -126.3 -0.1% ▪ OPEX higher on select
Slide 14: FY 2020 Revenue Bridge
FY 2020 Revenue Bridge FY 2020 Revenue Performance Year-over-Year FY 2020 DRIVERS ▪ Reported revenue -4.1% Organic Currency Portfolio Total -6.0% +1.4% +0.5% -4.1% ▪ Organic revenue -6.0%, – BSI down -5.5% organic – BEST down -11.0% organic (net of FY 2020 Revenue Bridge [$M] intercompany eliminatio
Slide 15: FY 2020 Non-GAAP Results Year-over-Year
FY 2020 Non-GAAP Results Year-over-Year [$ m, except EPS] FY 2020 FY 2019 Δ COMMENTS Total Revenues 1,987.5 2,072.6 -4.1% Gross Profit 968.0 1,037.0 -6.7% ▪ Gross margin down -130 bps, on lower Margin (% of revenues) 48.7% 50.0% -130 bps volume and reduced productivity, due to SG&A -452.8 -485.3 -6.
Slide 16: FY 2020 Cash Flow Year-over-Year
FY 2020 Cash Flow Year-over-Year COMMENTS [$ m] 2020 2019 Δ GAAP Net Income 161.4 198.0 -36.6 ▪ FY 2020 free cash flow of $235.0M, compared to $140.4M in FY 2019: Depreciation & amortization 80.4 75.6 +4.8 – Lower net income Changes in working capital* -38.1 -51.0 +12.9 – Continued CAPEX for site co
Slide 17: FY 2021 Outlook
FY 2021 Outlook 17
Slide 18: FY 2021 Guidance
FY 2021 Guidance Strong revenue growth, non-GAAP margin expansion and EPS growth FY 2021 Guidance 2021 ASSUMPTIONS ▪ Organic revenue growth: +7% to +9% Revenue Growth y-o-y +11% to +13% ▪ FX revenue tailwind: approximately +4% Non-GAAP Operating Margin +150 bps to +190 bps ▪ Non-GAAP tax rate: ~28%
Slide 19: Appendix
Appendix 19
Slide 20: Q4 2020 GAAP Results Year-over-Year
Q4 2020 GAAP Results Year-over-Year [$M, except EPS] Q4 2020 Q4 2019 Δ Total Revenues 627.5 599.9 +5% Gross Profit 313.0 296.3 +6% Margin (% of revenue) 49.9% 49.4% SG&A -130.4 -130.3 Flat (% of revenues) 20.8% 21.7% R&D -57.1 -46.7 +22% (% of revenues) 9.1% 7.8% Operating Income 112.8 117.7 -4% (%
Slide 21: Q4 2020 Reconciliation of GAAP and Non-GAAP Results
Q4 2020 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M, except EPS] FY 2020 FY 2019 GAAP Operating Income 112.8 117.7 Restructuring Costs 10.1 2.8 Acquisition-Related Costs 3.7 1.6 Purchased Intangible Amortization 8.9 9.1 Other Costs 5.6 1.3 TOTAL 28.3 14.8 Non-GAAP Operating Income
Slide 22: FY 2020 GAAP Results Year-over-Year
FY 2020 GAAP Results Year-over-Year [$M, except EPS] FY 2020 FY 2019 Δ Total Revenues 1,987.5 2,072.6 -4% Gross Profit 939.8 995.3 -6% Margin (% of revenue) 47.3% 48.0% SG&A -468.6 -500.2 -6% (% of revenues) 23.6% 24.1% R&D -198.0 -187.7 +6% (% of revenues) 10.0% 9.1% Operating Income 248.3 300.9 -1
Slide 23: FY 2020 Reconciliation of GAAP and Non-GAAP Results
FY 2020 Reconciliation of GAAP and Non-GAAP Results Year- over-Year [$M, except EPS] FY 2020 FY 2019 GAAP Operating Income 248.3 300.9 Restructuring Costs 15.8 1.4 Acquisition-Related Costs 3.2 16.8 Purchased Intangible Amortization 35.7 38.3 Other Costs 14.2 6.6 TOTAL 68.9 63.1 Non-GAAP Operating I
Slide 24: Q4 2020 Cash Flow Year-over-Year
Q4 2020 Cash Flow Year-over-Year COMMENTS [$ m] Q4 2020 Q4 2019 Δ GAAP Net Income 71.3 68.8 +2.5 ▪ Q4 2020 free cash flow of $174.2M compared to $108.0M in Q4-19: Depreciation & amortization 21.7 18.3 +3.4 – Comparable net income and CAPEX Changes in working capital* 42.6 22.7 +19.9 – Improvements i
Slide 25: Balance Sheet
Balance Sheet [$M] Dec 31, 2020 Dec 31, 2019 Total Assets 3,047.9 2,771.5 Working Capital* 893.0 821.0 Goodwill, Intangibles, Net & Other Long- 660.1 603.5 Term Assets [$M] Dec 31, 2020 Dec 31, 2019 Cash, Cash Equivalents & Short-term 731.8 684.9 Investments Financial Debt 844.5 813.3 Net (Debt)/Cas
Slide 26: BSI and BEST GAAP Performance Year-over-Year
Q4 2020 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Year-over-Year [$ m] Q4 2020 Q4 2019 Δ REVENUE Scientific Instruments (BSI) 574.7 546.6 +5% Organic Revenue Growth (%) +0.2% +5.8% Energy & Supercon Technologies (BEST) 54.7 57.7 -5% Corporate Eliminations -1.9 -4.4 Energy & Supercon Techno
Slide 27: BSI and BEST GAAP Performance Year-over-Year
FY 2020 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance Year-over-Year [$ m] FY 2020 FY 2019 Δ REVENUE Scientific Instruments (BSI) 1,810.0 1,877.6 -4% Organic Revenue Growth (%) -5.5% +5.8% Energy & Supercon Technologies (BEST) 189.5 209.9 -10% Corporate Eliminations -12.0 -14.9 Energy & Superc
Slide 28: FY 2020 Return on Invested Capital
FY 2020 Return on Invested Capital [$M, except EPS] FY 2020 FY 2019 Δ Non-GAAP Operating Income $317.2 $364.0 -13% Non-GAAP Income Tax Provision -82.9 -96.6 -14% Non-GAAP Operating Income after 234.3 267.4 -12% Tax Average Total Invested Capital: Average Long-Term Debt 827.6 567.7 +46% Average Curre