Bruker Corporation · NASDAQ:BRKR

Bruker — Q2 2017 Earnings Presentation

27 slides from Bruker's earnings presentation, Aug 3, 2017

1. Slide 1: Bruker Corporation Q2 2017 Earnings Presentation

   Bruker Corporation (NASDAQ: BRKR) Q2 2017 Earnings Presentation Frank Laukien, President & CEO Anthony Mattacchione, SVP & CFO August 3, 2017 Miroslava Minkova, Head of Investor Relations 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 within the meaning of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein

3. Slide 3: Q2-2017 & H1-2017 Business Update

   Q2-2017 & H1-2017 Business Update 3

4. Slide 4: Q2-2017: Solid revenue, operating income and EPS growth year-over-year

   Q2-2017: Solid revenue, operating income and EPS growth year-over-year Q2-2017 Performance Q2 Financials Revenues [$M] +11.6%  Revenue increase of +$43M, or +11.6% y-o-y in comparison with weak Q2-16 − Acquisitions add +5.8% y-o-y 415 372 − FX lowers revenue by -1.8% y-o-y − Organic revenue up +7.6

5. Slide 5: H1-2017: Back to positive organic growth, operating margins higher

   H1-2017: Back to positive organic growth, operating margins higher H1-2017 Performance H1 Financials Revenues [$M] +7.1%  Continued y-o-y improvements in European orders, and evidence of improved industrial demand  Revenue increase of +$53M, or +7.1% y-o-y 800 747 − Acquisitions add +5.5% y-o-y −

6. Slide 6: H1-2017 Operating Performance

   GROUP OVERVIEW: H1-2017 Operating Performance Bruker BIOSPIN Group  BIOSPIN low single digit constant currency revenue growth; operating margins lower on mix  NMR steady, despite challenging comp (including 1GHz NMR revenue in Q1-16)  PCI revenue improves with good Q2 execution; PCI market recove

7. Slide 7: H1-17 Operating Performance

   GROUP OVERVIEW: H1-17 Operating Performance Bruker NANO Group  NANO mid single digit constant currency revenue growth, helped by Hysitron acquisition (January 2017); improvements in industrial and European orders  AXS revenue strengthens significantly after weak 2016; higher academic and industria

8. Slide 8: IR Biotyper Solution for Microbial Strain Typing

   Innovation and Portfolio Expansion in Microbiology: IR BiotyperTM Solution for Microbial Strain Typing New IR BiotyperTM Solution  Unique benchtop system for microbial strain typing based on FT-IR spectroscopy  For in-house workflows in hospital hygiene and healthcare infection control testing  C

9. Slide 9: New Luxendo Light-Sheet Microscopy Product Line

   Value-creating M&A and Portfolio Transformation in Cell Biology and Neuroscience: New Luxendo™ Light-Sheet Microscopy Product Line Luxendo Light-Sheet Microscopy: Proprietary single plane illumination microscopy (SPIM) reduces acquisition times compared to confocal microscopy For live cell imaging

10. Slide 10: 2017 Key Priorities

    2017 Key Priorities Resume Revenue Growth via a combination of organic growth and M&A contributions Sustain Margin Expansion as we continue our Operational & Commercial Excellence journey Continue to Strengthen Systems and insights by harmonizing processes, ERP and CRM platforms Invest in profitable

11. Slide 11: Q2-2017 & H1-2017 Financial Update

    Q2-2017 & H1-2017 Financial Update 11

12. Slide 12: Non-GAAP Financial Performance: Q2-2017 Overview

    NON-GAAP FINANCIAL PERFORMANCE: Q2-2017 Overview [$ m, except EPS] Q2-2017 Q2-2016 Δ COMMENTS  Reported revenue +11.6%, Revenues 414.9 371.7 +11.6% strong organic growth Operating Income 51.7 40.0 +29%  Operating margin up +170 Margin (%) 12.5% 10.8% +170ps bps y/y  2016 restructuring Non-GAAP EP

13. Slide 13: Q2-2017 Revenue Bridge

    Q2-2017 Revenue Bridge Q2-2017 DRIVERS Q2-2017 Revenue for Bruker Corporation  Reported revenue +11.6% Organic Currency Portfolio Total  Organic revenue up +7.6% -1.8% +5.8% +11.6% +7.6%, reflecting y/y increases at CALID, BioSpin and BEST Q2-2017 Revenue Bridge [$M]  B-OST, Hysitron and InVivo a

14. Slide 14: Q2-2017 Non-GAAP Results

    Q2-2017 Non-GAAP Results [$ m, except EPS] Q2-2017 Q2-2016 Δ COMMENTS Total Revenues 414.9 371.7 +11.6%  Gross margin down -100 bps: – Higher BEST revenue with Gross Profit 193.3 176.9 +9% inherently lower gross margins Margin (% of revenues) 46.6% 47.6% -100 bps – BioSpin mix with more low field S

15. Slide 15: H1-2017 Revenue Bridge

    H1-2017 Revenue Bridge H1-2017 DRIVERS H1-2017 Revenue for Bruker Corporation  Reported revenue +7.1% Organic Currency Portfolio Total  Organic revenue growth +3.4%, reflecting growth +3.4% -1.8% +5.5% +7.1% at BioSpin, CALID and BEST  B-OST, Hysitron and H1-2017 Revenue Bridge [$M] InVivo acquis

16. Slide 16: H1-2017 Non-GAAP Results

    H1-2017 Non-GAAP Results [$ m, except EPS] H1 2017 H1 2016 Δ COMMENTS Total Revenues 799.8 747.1 +7.1%  Gross margin flat. Higher Daltonics and AXS volume Gross Profit 376.7 352.3 +7% offset by more BEST revenue, Margin (% of revenues) 47.1% 47.2% -5 bps and BioSpin mix effects SG&A -197.5 -192.1 +

17. Slide 17: H1-2017 Cash Flow

    H1-2017 Cash Flow [$ m] H1-2017 H1-2016 Δ COMMENTS Net Income 45.7 38.4 +7.3  Y-o-y free cash flow improvements driven by: Depreciation & amortization 31.1 26.7 +4.4 – Operating cash flow higher due to higher net Changes in working capital* -20.0 -15.0 -5.0 income and lower tax payments Other -41.4

18. Slide 18: 2017 Outlook

    2017 Outlook 18

19. Slide 19: FY 2017 Guidance: Adjusting Outlook for Mid-Year Performance and Changes in FX

    FY 2017 Guidance: Adjusting Outlook for Mid-Year Performance and Changes in FX FY 2017 Guidance 2017 ASSUMPTIONS  Organic revenue growth of Revenue Growth y-o-y +4.5% to +6.0% +1.5% to +2% (updated)  Acquisition revenue growth: +3.5% to +4% Non-GAAP Operating +40 bps to +70 bps Margin Expansion y-

20. Slide 20: Appendix

    Appendix 20

21. Slide 21: Q2-2017 GAAP Results

    Q2-2017 GAAP Results [$M, except EPS] Q2 2017 Q2 2016 Δ Total Revenues 414.9 371.7 +12% Gross Profit 183.4 170.1 +8% Margin (% of sales) 44.2% 45.8% SG&A -102.8 -100.9 +2% (% of revenues) 24.8% 27.1% R&D -40.7 -36.8 +11% (% of revenues) 9.8% 9.9% Operating Income 33.5 20.4 +64% (% of revenues) 8.1%

22. Slide 22: Q2-2017 Reconciliation of GAAP and Non-GAAP Results

    Q2-2017 Reconciliation of GAAP and Non-GAAP Results [$M, except EPS] Q2 2017 Q2 2016 GAAP Operating Income 33.5 20.4 Restructuring Costs 3.8 3.7 Acquisition-Related Costs 5.9 8.1 Purchased Intangible Amortization 7.5 5.4 Other Costs 1.0 2.4 TOTAL 18.2 19.6 Non-GAAP Operating Income 51.7 40.0 Non-GAA

23. Slide 23: H1-2017 GAAP Results

    H1-2017 GAAP Results [$M, except EPS] H1 2017 H1 2016 Δ Total Revenues 799.8 747.1 +7% Gross Profit 359.8 336.9 +7% Margin (% of sales) 45.0% 45.1% SG&A -200.9 -193.6 +4% (% of revenues) 25.1% 25.9% R&D -78.3 -72.9 +7% (% of revenues) 9.8% 9.8% Operating Income 71.1 54.4 +31% (% of revenues) 8.9% 7.

24. Slide 24: H1-2017 Reconciliation of GAAP and Non-GAAP Results

    H1-2017 Reconciliation of GAAP and Non-GAAP Results [$M, except EPS] H1 2017 H1 2016 GAAP Operating Income 71.1 54.4 Restructuring Costs 3.9 7.5 Acquisition-Related Costs 8.7 10.0 Purchased Intangible Amortization 14.4 10.8 Other Costs 2.8 4.6 TOTAL 29.8 32.9 Non-GAAP Operating Income 100.9 87.3 Non

25. Slide 25: Q2-2017 Cash Flow

    Q2-2017 Cash Flow [$ m] Q2 2017 Q2 2016 Δ COMMENTS Net Income 24.0 14.8 +9.2  Free cash flow lower y/y driven by: Depreciation & amortization 16.0 13.5 +2.5 – Increased use of cash for working capital needs Changes in working capital* -20.5 -13.7 -6.8 – Timing of customer Other -36.7 3.5 -40.2 adva

26. Slide 26: Balance Sheet

    Balance Sheet Jun 30, Dec 31, Jun 30, [$M] 2017 2016 2016 Total Assets 1,912.9 1,808.4 1,720.5 Working Capital* 653.8 598.2 589.9 Intangibles, Net & Other 360.5 293.4 268.3 Long-Term Assets Jun 30, Dec 31, Jun 30, [$M] 2017 2016 2016 Cash, Cash Equivalents & 440.3 500.3 420.4 Short-term Investments

27. Slide 27: BSI and BEST GAAP Performance

    Q2-17 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q2-2017 Q2-2016 Δ REVENUE Scientific Instruments (BSI) 362.5 345.8 +5% Organic Revenue Growth (%) +4.4% -8.7% Energy & Supercon Technologies (BEST) 54.0 28.5 +89% Organic Revenue Growth (%) +43.2% -8.9% Corporate Eliminations -1.6 -2.6

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