Bruker Corporation · NASDAQ:BRKR

Bruker — Jefferies 2017 Healthcare Conference

21 slides from Bruker's conference presentation, Jun 8, 2017

  1. Slide 1: Bruker drives profitable growth and margin expansion

    Bruker drives profitable growth and margin expansion by enabling scientific discoveries and by delivering high- performance analytical, life science and diagnostic solutions © Bruker Corporation Innovation with Integrity

  2. Slide 2: Safe Harbor Statement

    Bruker Corporation Safe Harbor 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. Forward-looking statements are based on current expectati

  3. Slide 3: Key Messages & Financial Objectives

    Key Messages & Financial Objectives 1. Bruker is a differentiated leader in attractive markets for analytical, life science and diagnostic tools, and our brand stands for innovation:  Market leader in unique, high value technologies: NMR, MALDI-TOF, MALDI BioTyper, FTMS, AFM, XRD & Superconductors

  4. Slide 4: Bruker Overview

    Three Primary Life Science Tools Bruker Overview Groups with Global Footprint • Founded in 1960 Revenue breakdown in FY2016: BioSpin Systems • FY2016 revenue: ~$1.6 billion 35% • R&D investment: ~9% of revenue 75% CALID • ~75% of revenue from scientific BEST 8% 29% and diagnostic instruments 25% • ~

  5. Slide 5: Three Life Science Tools & Diagnostics (LST & DX) Groups

    Three Life Science Tools & Diagnostics (LST & DX) Groups BRUKER HAS #1 OR #2 MARKET POSITION FOR >60% OF PRODUCT PORTFOLIO NMR/EPR Preclinical Imaging MALDI BioTyper Atomic Force FT-IR/NIR, X-Ray Diffraction (XRD), & NMR Phenomics & MALDI Imaging Microscopy Next-Gen Semicon Metrology BioSpin Group C

  6. Slide 6: Bruker FY 2016 financials

    Bruker FY 2016 financials Continued strong margin expansion and profitability improvements Non-GAAP Non-GAAP Non-GAAP EBITDA Non-GAAP Gross Margin Operating Margin EPS 48.1% 14.8% $290M 46.2% 13.3% $258M $1.19 $0.89 +190 bps +150 bps +$32M +34% FY 2015 FY 2016 * Non-GAAP gross margin, non-GAAP opera

  7. Slide 7: FY 2017 Guidance: Return to organic revenue growth, sustain operating margin expansion

    FY 2017 Guidance: Return to organic revenue growth, sustain operating margin expansion(1) FY 2017 Guidance 2017 ASSUMPTIONS  Organic revenue growth: +1% to +2% Revenue Growth y-o-y +2% to +3.5%  Acquisition revenue growth: +3.5% to +4% Non-GAAP Operating Margin +40 bps to +70 bps  FX revenue head

  8. Slide 8: Portfolio Transformation

    Portfolio Transformation - starting to ‘move the needle’ in 2018 and beyond Six Key High-Growth & High-Margin Initiatives: Growth  Phenomics & Proteomics  Biopharma & Applied  Microbiology & Diagnostics  Neuroscience & Cell Microscopy Portfolio Cost  Next-gen Nanotechnology Tools After-Market:

  9. Slide 9: Phenomics & Proteomics

    Portfolio Transformation Phenomics & Proteomics Phenomics by NMR Phenomics & Proteomics Structural Biology by Mass Spec by GHz-Class NMR • NMR for phenomics research • timsTOFTM Trapped Ion Mobility, • Structural biology with dynamics and impact II & maXis II UHR-QTOFs function • International Pheno

  10. Slide 10: Biopharma & Applied Market

    Portfolio Transformation Biopharma & Applied Market Biopharma: rapifleX MALDI Applied Markets: PharmaPulse™ NMR FoodScreeners™ • Label-free ultra-high throughput MS-screening on • Bruker NMR, MS and FT-IR/NIR instruments used for quality, millions of compounds in pharma drug discovery authenticity a

  11. Slide 11: Microbiology & Diagnostics

    Portfolio Transformation Microbiology & Diagnostics Clinical Microbiology: NEW Consumable Products at ECCMID (April 2017): • MBT Star®-Carba IVD: CE-IVD assay for mass spec-based MALDI Biotyper antibiotic resistance testing on MALDI Biotyper • MALDI Biotyper identifies bacteria, yeasts and fungi mor

  12. Slide 12: Neuroscience & Cell Microscopy

    Portfolio Transformation Neuroscience & Cell Microscopy Next-gen Optogenetics & Recent Bruker Nano Acquisition (May 2017): Super-Resolution Cell Microscopy Luxendo light sheet microscopy • Simultaneous, all-optical stimulation and • Proprietary single plane illumination microscopy imaging platforms

  13. Slide 13: Next-Gen Nanotechnology Tools

    Portfolio Transformation Next-Gen Nanotechnology Tools Next-Gen Nanotechnology: X-Ray Semiconductor Metrology • Logic and memory makers require next-gen nano-metrology tools to ensure yield and quality • Bruker next-gen atomic force microscopy (AFM) and X-ray metrology tools are key for advanced nod

  14. Slide 14: Fast Growing After-Market Business

    Fast Growing After-Market Business Services, Software and Consumables  Focus on After-Market revenue 450 BIOSPIN NANO 400 CALID 350 $ millions  Focus on Service 300 250 CALID 200 2013 2014 2015 2016 © Bruker Corporation 14

  15. Slide 15: From Transformation and Rightsizing (2013-2016) to Operational & Commercial Excellence (2017-2020)

    From Transformation and Rightsizing (2013-2016) to Operational & Commercial Excellence (2017-2020) 2013 2014 2015 2016 2017 2018-2020 Outsourcing Bruker BioSpin Rightsizing Operational Excellence Outsourcing Bruker NANO & Cost Optimization Rightsizing & Footprint Consolidation • Product R&D Excellen

  16. Slide 16: Portfolio Transformation: Fundamentally reshaping the portfolio for fast growth

    Portfolio Transformation: Fundamentally reshaping the portfolio for fast growth & continued multi-year margin expansion Six Key High-Growth & High-Margin Initiatives: 2017 est.: Growth  Phenomics & Proteomics About 25% of Bruker’s  Biopharma & Applied revenue Growing  Microbiology & Diagnostics a

  17. Slide 17: www.bruker.com

    www.bruker.com © Bruker Corporation 17

  18. Slide 18: Reconciliation of GAAP to NON-GAAP Financial Measures

    Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (in millions, except per share amounts) Twelve Months Ended December 31, 2016 2015 Reconciliation of Non-GAAP Operating Income, Non-GAAP Profit Before Tax, Non-GAAP Net Income, and Non-GAAP EPS GAAP Operating Income $ 177.2 $ 1

  19. Slide 19: Reconciliation of GAAP to NON-GAAP Financial Measures

    Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (in millions, except per share amounts) 2016 2015 Reconciliation of GAAP and Non-GAAP Gross Profit GAAP Gross Profit $ 742.5 $ 708.6 Non-GAAP Adjustments: Restructuring Costs 11.0 21.2 Acquisition-Related Costs 2.1 2.5 Purchase

  20. Slide 20: Reconciliation of GAAP to NON-GAAP Financial Measures

    Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (in millions, except per share amounts) 2016 2015 Reconciliation of Non-GAAP EBITDA Non-GAAP Net Income Attributable to Bruker (from above) $ 192.3 $ 151.0 Non-GAAP Adjustments: Interest Expense, net 1 12.9 11.8 Non-GAAP Income

  21. Slide 21: Reconciliation of GAAP to NON-GAAP Financial Measures

    Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (in millions, except per share amounts) 2016 2015 Reconciliation of Non-GAAP Return on Invested Capital (ROIC) Non-GAAP Operating Income (from above) $ 237.9 $ 215.2 Less: Non-GAAP Income Tax Provision (from above) (35.9) (43.4

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