Bruker Corporation · NASDAQ:BRKR

Bruker — Q1 2013 Earnings Presentation

18 slides from Bruker's earnings presentation, May 2, 2013

  1. Slide 1: Bruker Corporation Q1 2013 Earnings Presentation

    Bruker Corporation (NASDAQ: BRKR) Q1 2013 Earnings Presentation Frank Laukien, President & CEO Charles Wagner, EVP & CFO May 2, 2013 Joshua Young, VP, Investor Relations

  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 as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained he

  3. Slide 3: Q1 2013 Operational Update

    Q1 2013 Operational Update © Bruker Corporation 3

  4. Slide 4: Q1 2013 results were below expectations

    Q1 2013 results were below expectations Key Messages Q1 2013 Financials  Lower than expected revenues were the result of: 1. Substantial weakening of Japanese Yen Revenues [$ m] -3% 2. Weakness in semiconductor & data storage markets 3. Temporary operational issues  Revenue shortfall disproportion

  5. Slide 5: Group Overview: Q1 2013 Performance (MAT, BioSpin)

    GROUP OVERVIEW: Q1 2013 Performance Bruker MAT  Weak demand from Semiconductor & Data Storage industries – Revenue impact in China, Korea, Taiwan  Weakness in global x-ray crystallography  Bruker Elemental and Bruker Nano Analytics divisions performed well due to positive impact of new product in

  6. Slide 6: Group Overview: Q1 2013 Performance (CALID, BEST)

    GROUP OVERVIEW: Q1 2013 Performance Bruker CALID*  Life Science business faced difficult year-over-year comparisons and some temporary operational issues – Went live with new ERP system and processes in Germany – Many organization and management changes, especially in Asia  Revenue and profits red

  7. Slide 7: We expect to generate improved performance in Q2 and H2 2013

    We expect to generate improved performance in Q2 and H2 2013 1 Address operational issues to complete customer installations and capture delayed revenue 2 Continue to control discretionary spending and identify other profit recovery opportunities 3 Deliver on remaining 2013 initiatives to improve co

  8. Slide 8: Q1 2013 Financial Update

    Q1 2013 Financial Update © Bruker Corporation 8

  9. Slide 9: Non-GAAP Financial Performance: Q1 2013 Overview

    NON-GAAP FINANCIAL PERFORMANCE: Q1 2013 Overview [$ m] Q1 2013 Q1 2012 Δ COMMENTS Revenues 393.4 405.6 -3%  Japanese Yen lowered EPS by approximately $0.03 in Operating Income 23.6 43.6 -46% Q1-13 Margin (%) 6.0% 10.7%  Lower profit, lower customer advances and EPS 0.08 0.14 -43% higher capex spen

  10. Slide 10: Q1 2013 Revenue Bridge

    Q1 2013 revenue bridge Q1-13 DRIVERS Q1 2013 Revenues for Bruker Corp.  Japanese Yen drove Acquisitions & negative FX impact in Organic Currency Divestitures Total the quarter -1.1% -1.5% -0.4% -3.0%  At current spot rates, weaker Yen expected to reduce revenue by approximately $35M in FY 2013E Q1

  11. Slide 11: Non-GAAP Results

    Q1 2013 Non-GAAP Results [$ m] Q1 2013 Q1 2012 Δ COMMENTS Total Revenues 393.4 405.6 -3%  Lower gross profit margin is primarily the Gross Profit 179.5 195.4 -8% result of unfavorable mix Margin (% of sales) 45.6% 48.2% and negative FX effects SG&A -106.5 -103.6 3%  Operating expenses (% of revenu

  12. Slide 12: Reconciliation of GAAP to Non-GAAP Results

    Q1 2013 Reconciliation of GAAP to Non-GAAP Results [$ m] Q1 2013 Q1 2012 GAAP Operating Income 12.2 34.4 Restructuring Costs 3.2 -- Acquisition Related Costs 0.6 0.7 Purchased Intangible Amortization 5.1 5.1 Other Costs 2.5 3.4 TOTAL 11.4 9.2 Non-GAAP Operating Income 23.6 43.6 Non-GAAP Net Interest

  13. Slide 13: Cash Flow Statement

    Q1 2013 Cash Flow Statement [$ m] Q1 2013 Q1 2012 Δ COMMENTS Net Income 5.7 15.1 -9.4  Lower profit and fewer customer advances drive lower free cash flow in Depreciation & amortization 15.2 13.6 1.6 the quarter Changes in working capital* -20.5 -12.8 -7.7  Inventory benefit of outsourcing begins

  14. Slide 14: 2013 Guidance

    2013 Guidance © Bruker Corporation 14

  15. Slide 15: Revised Guidance FY 2013

    Revised Guidance FY 2013 Bruker FY 2013 Guidance ASSUMPTIONS  Organic revenue growth Revenue Growth ~2%-3% of approximately 3%  Year-on-year growth and sequential improvement Restructuring Costs ~$20-$25M in Q2 2013  Gradual recovery of delayed Q1 revenue Non-GAAP Tax Rate ~27%-30%  Profitabilit

  16. Slide 16: Appendix

    Appendix © Bruker Corporation 16

  17. Slide 17: Q1 2013 GAAP Results

    Q1 2013 GAAP Results [$ m] Q1 2013 Q1 2012 Δ COMMENTS Total Revenues 393.4 405.6 -3%  $3.2 million year-over- year increase in costs Gross Profit 174.5 190.4 -8% driven by on-going Margin (% of sales) 44.4% 46.9% restructuring activities SG&A -106.8 -104.4 2%  Increase in share count (% of revenue

  18. Slide 18: Balance sheet

    Balance sheet COMMENTS [$ m] Mar 2013 Dec 2012 Δ  Cash decrease driven by Total Assets 1,811.9 1,856.4 -2% lower profitability, tax payments, and decrease in customer advances Equity 692.6 709.7 -2%  Climb in net debt solely related to lower cash Cash & Cash Equivalents 269.4 310.6 -13% balance In

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