Bruker Corporation · NASDAQ:BRKR
Bruker — Q4 2022 Earnings Presentation
33 slides from Bruker's earnings presentation, Feb 9, 2023
Slide 1: Q4 2022 Earnings Presentation
BRUKER CORPORATION (NASDAQ: BRKR) Q4 2022 Earnings Presentation February 9, 2023 Frank H. Laukien, President & Chief Executive Officer 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 2022 & FY 2022 Business Update
Q4 2022 & FY 2022 Business Update 3
Slide 4: Q4 2022: Strong Organic Revenue Growth, Gross Margin Expansion and EPS Growth
Q4 2022 BUSINESS UPDATE Q4 2022: Strong Organic Revenue Growth, Gross Margin Expansion and EPS Growth, while Accelerating our Strategic Investments in Proteomics and Spatial Biology Q4 2022 Performance Year-over-Year Q4 Financials Revenues [$M] ❖ Revenue increased $24.9M, or +3.6% ▪ Organic growth o
Slide 5: FY 2022: Project Accelerate 2.0 and Operational Excellence Drive Strong Financial Improvements
FY 2022 BUSINESS UPDATE FY 2022: Project Accelerate 2.0 and Operational Excellence Drive Strong Financial Improvements and Enable Increased Investments in Proteomics and Spatial Biology FY 2022 Performance Year-over-Year FY 2022 Financials Revenues [$M] ❖ BSI organic bookings growth strong, with boo
Slide 6: Constant Currency FY 2022 Revenue Performance Year-over-Year
GROUP OVERVIEW Constant Currency FY 2022 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN up high single digits %, on solid customer demand and aftermarket growth, with faster bookings growth and increased backlog at year end 2022 ▪ Revenue for 4 GHz-class NMRs, including 2 compa
Slide 7: Constant Currency FY 2022 Revenue Performance Year-over-Year
GROUP OVERVIEW Constant Currency FY 2022 Revenue Performance Year-over-Year(1) Bruker NANO Group ▪ NANO up high-teens %, with strong industrial research and semiconductor microelectronics ▪ Nano Surfaces drove Group growth ▪ X-Ray and Nano Analysis tools higher, with supply chain constraints, increa
Slide 8: Inscopix and Biognosys add Key Capabilities in Neuroscience Research and Proteomics
INSCOPIX ACQUISITION AND BIOGNOSYS MAJORITY INVESTMENT Inscopix and Biognosys add Key Capabilities in Neuroscience Research and Proteomics ▪ Inscopix is a neuroscience pioneer and market leader of miniaturized ▪ Biognosys offers mass spec expert proteomics CRO services, software and kits microscopes
Slide 9: Future Clean Energy Generation with Advanced BEST Cleantech Technologies
CLEAN TECH TOOLS BY BEST SEG M EN T Future Clean Energy Generation with Advanced BEST Cleantech Technologies ▪ Cleantech trends funding new markets for differentiated and unique BEST cleantech tools ▪ BEST offers cleantech technologies and tools for fusion power and next-gen offshore wind turbines F
Slide 10: Project Accelerate 2.0 Contribution Up at ~56% of 2022 Revenue
BRUKER REVENUE MIX PROJECT ACCELERATE 2.0 CONTRIBUTION UP AT ~56% OF 2022 REVENUE Project Accelerate 2.0 + 56% of 2022 revenues, up from 46% in 2019 + High-value innovation & strong revenue and EPS growth + Continued margin expansion + Expanded, very-large TAMs + At inflection of expected large oppo
Slide 11: Financial Update
Q4 2022 & FY 2022 Financial Update 11
Slide 12: Q4 2022 Non-GAAP Financial Performance
Q4 2022 YEAR-OVER-YEAR COMPARISON Q4 2022 Non-GAAP Financial Performance Comments (year-over-year) [$M, except EPS] Q4 2022 Q4 2021 Δ ▪ Reported revenue up +3.6%, despite FX headwind of 7% Revenues $708.4 $683.5 +3.6% ▪ Organic revenue growth of +8.9%; solid execution from all Operating Income $148.
Slide 13: Q4 2022 Revenue Bridge
NON-GAAP FINANCIAL PERFORMANCE Q4 2022 Revenue Bridge Q4 2022 Revenue Performance Year-over-Year Q4 2022 Drivers (year-over-year) Organic Currency Portfolio Total ▪ Reported revenue up +3.6% +8.9% -7.0% +1.7% +3.6% ▪ Organic revenue up +8.9% Q4 2022 Revenue Bridge [$M] ✓ BSI up +8.5% organic +$60.8M
Slide 14: Q4 2022 Non-GAAP Results Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE Q4 2022 Non-GAAP Results Year-over-Year [$M, except EPS] Q4 2022 Q4 2021 Δ Comments (year-over-year) Total Revenues 708.4 683.5 +3.6% ▪ Gross margin up +140 bps on higher Project Gross Profit 372.3 350.2 +6.3% Margin (% of revenues) 52.6% 51.2% +140 bps Accelerate mix,
Slide 15: FY 2022 Revenue Bridge
NON-GAAP FINANCIAL PERFORMANCE FY 2022 Revenue Bridge FY 2022 Revenue Performance Year-over-Year FY 2022 Drivers (year-over-year) Organic Currency Portfolio Total ▪ Reported revenue up +4.7% +10.2% -6.9% +1.4% +4.7% ▪ Organic revenue up +10.2% FY 2022 Revenue Bridge [$M] ✓ BSI up +9.5% organic ✓ BES
Slide 16: FY 2022 Non-GAAP Results Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE FY 2022 Non-GAAP Results Year-over-Year [$M, except EPS] FY 2022 FY 2021 Δ Comments (year-over-year) Total Revenues 2,530.7 2,417.9 +4.7% ▪ Gross margin up +150 bps on higher Project Gross Profit 1,330.1 1,235.0 +7.7% Margin (% of revenues) 52.6% 51.1% +150 bps Acceler
Slide 17: FY 2022 Cash Flow Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE FY 2022 Cash Flow Year-over-Year [$M] 2022 2021 Δ Comments (year-over-year) GAAP Net Income 298.5 280.6 +17.9 FY 2022 free cash flow (FCF) $143.0M, Depreciation & amortization 88.0 89.1 -1.1 compared to FY 2021 FCF of $190.4M: Changes in working capital* (170.8) (143.8
Slide 18: FY 2023 Outlook
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Slide 19: FY 2023 Outlook
FY 2023 GUIDANCE FY 2023 Outlook FY 2023 Assumptions (as of 2/9/23) ▪ Organic revenue growth of 8% to 10% FY 2023 Guidance ▪ FX tailwind +1.5% ▪ Acquisitions tailwind +1.5% ▪ Non-GAAP operating profit growth of 7% to 9% Revenue (in $B) $2.81B to $2.86B ▪ Non-GAAP operating margin declines ~70 bps Re
Slide 20: Appendix
Appendix 20
Slide 21: Q4 2022 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth
APPENDIX Q4 2022 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth [$M] Q4 2022 Q4 2021 Revenue as of the prior comparable period 683.5 627.5 Non-GAAP components: Acquisitions and divestures 11.6 1.8 Organic 60.8 71.6 Currency (47.5) (17.4) Revenue as of the current period 708
Slide 22: Q4 2022 GAAP Results Year-over-Year
APPENDIX Q4 2022 GAAP Results Year-over-Year [$M, except EPS] Q4 2022 Q4 2021 Δ Total Revenues 708.4 683.5 +3.6% Gross Profit 365.9 341.6 +7.1% Margin (% of revenue) 51.7% 50.0% SG&A (164.7) (153.3) +7.4% (% of revenues) 23.2% 22.4% R&D (63.5) (58.1) +9.3% (% of revenues) 9.0% 8.5% Operating Income
Slide 23: Q4 2022 Reconciliation of GAAP and Non-GAAP Results Year-over-Year
APPENDIX Q4 2022 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M] Q4 2022 Q4 2021 GAAP Operating Income 131.0 125.4 Restructuring Costs 0.4 3.0 Acquisition-Related Costs 4.3 3.0 Purchased Intangible Amortization 9.6 10.2 Other Costs 3.6 2.2 TOTAL 17.9 18.4 Non-GAAP Operating Income 14
Slide 24: FY 2022 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth
APPENDIX FY 2022 Reconciliation of GAAP Reported Revenue Growth to Organic Revenue Growth [$M] FY 2022 FY 2021 Revenue as of the prior comparable period 2,417.9 1,987.5 Non-GAAP components: Acquisitions and divestures 34.3 8.1 Organic 246.5 379.0 Currency (168.0) 43.3 Revenue as of the current perio
Slide 25: FY 2022 GAAP Results Year-over-Year
APPENDIX FY 2022 GAAP Results Year-over-Year [$M, except EPS] FY 2022 FY 2021 Δ Total Revenues 2,530.7 2,417.9 +4.7% Gross Profit 1,305.7 1,209.6 +7.9% Margin (% of revenue) 51.6% 50.0% SG&A (607.4) (561.2) +8.2% (% of revenues) 24.0% 23.2% R&D (235.9) (220.8) +6.8% (% of revenues) 9.3% 9.1% Operati
Slide 26: FY 2022 Reconciliation of GAAP and Non-GAAP Results Year-over-Year
APPENDIX FY 2022 Reconciliation of GAAP and Non-GAAP Results Year-over-Year [$M] FY 2022 FY 2021 GAAP Operating Income 432.7 413.3 Restructuring Costs 4.8 8.2 Acquisition-Related Costs 19.7 6.9 Purchased Intangible Amortization 37.1 37.4 Other Costs 11.3 4.4 TOTAL 72.9 56.9 Non-GAAP Operating Income
Slide 27: Q4 2022 Cash Flow Year-over-Year
NON-GAAP FINANCIAL PERFORMANCE Q4 2022 Cash Flow Year-over-Year [$M] Q4 2022 Q4 2021 Δ Comments (year-over-year) GAAP Net Income 98.3 76.0 +22.3 ▪ Q4 2022 free cash flow up $24.5M on Depreciation & amortization 23.7 23.0 +0.7 higher net income Changes in working capital* (15.5) (26.7) +11.2 Other it
Slide 28: Balance Sheet
APPENDIX Balance Sheet [$M] Dec 31, 2022 Dec 31, 2021 Total Assets 3,618.5 3,650.0 Working Capital* 1,094.1 979.6 Goodwill, Intangibles, Net & Other Long-Term Assets 1,007.0 772.1 [$M] Dec 31, 2022 Dec 31, 2021 Cash, Cash Equivalents & Short-term Investments 645.5 1,168.2 Financial Debt 1,220.9 1,33
Slide 29: Q4 2022 BSI and BEST GAAP Performance Year-over-Year
APPENDIX Q4 2022 BSI and BEST GAAP Performance Year-over-Year [$M] Q4 2022 Q4 2021 Δ REVENUE Scientific Instruments (BSI) 651.8 629.2 +4% Organic Revenue Growth (%) +8.5% +11.8% Energy & Supercon Technologies (BEST) 58.9 57.8 +2% Corporate Eliminations (2.3) (3.5) Energy & Supercon Technologies (BES
Slide 30: FY 2022 BSI and BEST GAAP Performance Year-over-Year
APPENDIX FY 2022 BSI and BEST GAAP Performance Year-over-Year [$M] FY 2022 FY 2021 Δ REVENUE Scientific Instruments (BSI) 2,305.9 2,208.1 +4% Organic Revenue Growth (%) +9.5% +19.4% Energy & Supercon Technologies (BEST) 237.1 223.8 +6% Corporate Eliminations (12.3) (14.0) Energy & Supercon Technolog
Slide 31: FY 2022 Return on Invested Capital
APPENDIX FY 2022 Return on Invested Capital [$M] FY 2022 FY 2021 Non-GAAP Operating Income 505.6 $470.2 Non-GAAP Income Tax Provision (134.4) (126.1) Non-GAAP Operating Income after Tax 371.2 344.1 Average Total Invested Capital: Average Long-Term Debt $1,213.0 $1,034.3 Average Current Portion of Lo
Slide 32: FY 2022 EBITDA
APPENDIX FY 2022 EBITDA [$M] FY 2022 FY 2021 Δ Non-GAAP Net Income* $348.9 $320.9 +9% GAAP Interest Expense, Net 13.3 13.5 -1% Non-GAAP Income Tax Provision 134.4 126.1 +7% GAAP Depreciation Expense 50.2 51.6 -3% Amortization Expense** 0.7 0.1 Total 198.6 191.3 +4% Non-GAAP EBITDA $547.5 $512.2 +7%
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