Slide 1: Q1 2018 Earnings Presentation
Bruker Corporation (NASDAQ: BRKR) Q1 2018 Earnings Presentation Frank Laukien, President & CEO Gerald Herman, Interim CFO May 3, 2018 Miroslava Minkova, Head of Investor Relations Innovation with Integrity
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
Slide 3: Q1 2018 Business Update
Q1 2018 Business Update 3
Slide 4: Q1 2018: Good organic revenue growth and strong year-over-year EPS improvement
Q1 2018: Good organic revenue growth and strong year-over-year EPS improvement Q1 2018 Performance Q1 Financials Revenues [$M] +12.2% Revenues increase +$47M, or +12.2%, y-o-y −Organic revenue +4.0% y-o-y, including +3.8% in 431.7 Scientific Instruments and +5.1% in BEST segment 384.9 −Acquisition
Slide 5: Q1 2018 Operating Performance
GROUP OVERVIEW: Q1 2018 Operating Performance Bruker BIOSPIN Group BIOSPIN revenue modestly below prior year in constant currency due to NMR revenue timing Applied & clinical research systems revenue higher PCI systems recovery ongoing After-market service revenue continues to grow Bruker CA
Slide 6: Q1 2018 Operating Performance
GROUP OVERVIEW: Q1 2018 Operating Performance Bruker NANO Group NANO mid-single digit constant currency revenue growth, driven by strong industrial research demand AXS with strong growth in industrial markets Nano Surfaces and Nano Analysis revenues also grow Semicon metrology revenue flat y
Slide 7: MALDI Biotyper Bologna Work Flow for Blood Stream Infections
INNOVATION AND PORTFOLIO TRANSFORMATION: MALDI Biotyper “Bologna” Work Flow for Rapid and Cost-Effective Diagnosis of Blood Stream Infections(1) Rapid 15 to 20 minute microbial ID of ~2,700 species from positive blood culture New CE-IVD Fast Sepsityper® for reduced hands-on time Rapid 30-60 mi
Slide 8: Falko Busse Appointed BioSpin Group President
STRENGTHENING LEADERSHIP: Falko Busse Appointed BioSpin Group President Joined Bruker BioSpin in 2015 as Executive VP of Research and Development Assumed responsibility for BioSpin operations, marketing and strategy in early 2017 Promoted to Deputy Group President in October 2017 and to Group Pre
Slide 9: 2018 Key Priorities
2018 Key Priorities Position company for further organic Revenue Growth Acceleration: drive Project Accelerate high-growth, high-margin initiatives Transform Portfolio by investing in Project Accelerate Sustain Margin Expansion with continued Operational & Commercial Excellence initiatives Continue
Slide 10: Financial Update
Q1 2018 Financial Update 10
Slide 11: Q1 2018 Overview
NON-GAAP FINANCIAL PERFORMANCE: Q1 2018 Overview [$ m, except EPS] Q1 2018 Q1 2017 Δ COMMENTS Revenues 431.7 384.9 +12.2% Reported revenue +12.2%, organic growth +4.0% Operating Profit 52.9 49.2 +8% Operating profit up +8% Margin (%) 12.3% 12.8% -50 bps Operating margin -50 bps: FX headwinds m
Slide 12: Q1 2018 Revenue Bridge
Q1 2018 Revenue Bridge Q1 2018 DRIVERS Q1 2018 Revenue Reported revenue +12.2% Organic Currency Portfolio Total Organic revenue +4.0%, driven by CALID, NANO +4.0% +7.7% +0.5% +12.2% and BEST – BSI +3.8% organic – BEST +5.1% organic Q1 2018 Revenue Bridge [$M] (net of intercompany eliminations) +
Slide 13: Q1 2018 Non-GAAP Results
Q1 2018 Non-GAAP Results [$ m, except EPS] Q1 2018 Q1 2017 Δ COMMENTS Total Revenues 431.7 384.9 +12.2% Gross margin -10 bps: negative FX translation more than offsets Gross Profit 205.0 183.4 +12% volume and operational Margin (% of revenues) 47.5% 47.6% -10 bps improvements at CALID and NANO SG&
Slide 14: Q1 2018 Cash Flow
Q1 2018 Cash Flow [$ m] Q1 2018 Q1 2017 Δ COMMENTS Net Income 27.4 21.7 +5.7 Free cash flow up $14M year-over-year, driven by: Depreciation & amortization 15.8 15.1 +0.7 – Higher net income Changes in working capital* -9.7 0.5 -10.2 – Increase in customer advances Other 10.3 -4.7 +15.0 – Slightly
Slide 15: 2018 Outlook
2018 Outlook 15
Slide 16: FY 2018 Guidance Unchanged: Sustained organic revenue growth, further operating margin expansion
FY 2018 Guidance Unchanged: Sustained organic revenue growth, further operating margin expansion FY 2018 Guidance 2018 ASSUMPTIONS Organic revenue growth Revenue Growth y-o-y Approximately +7% approximately +3% FX revenue tailwind: +4% Non-GAAP Operating +50 bps to +80 bps Non-GAAP tax rate: ~
Slide 17: Appendix
Appendix 17
Slide 18: Q1 2018 GAAP Results
Q1 2018 GAAP Results [$M, except EPS] Q1 2018 Q1 2017 Δ Total Revenues 431.7 384.9 +12% Gross Profit 199.4 176.4 +13% Margin (% of sales) 46.2% 45.8% SG&A -110.3 -98.1 +12% (% of revenues) 25.6% 25.5% R&D -43.2 -37.6 +15% (% of revenues) 10.0% 9.8% Operating Income 38.1 37.6 +1% (% of revenues) 8.8%
Slide 19: Reconciliation of GAAP and Non-GAAP Results
Q1 2018 Reconciliation of GAAP and Non-GAAP Results [$M, except EPS] Q1 2018 Q1 2017 GAAP Operating Income 38.1 37.6 Restructuring Costs 3.5 0.1 Acquisition-Related Costs 1.0 2.8 Purchased Intangible Amortization 6.8 6.9 Other Costs 3.5 1.8 TOTAL 14.8 11.6 Non-GAAP Operating Income 52.9 49.2 Non-GAA
Slide 20: Balance Sheet
Balance Sheet [$M] Mar 31, 2018 Dec 31, 2017 Mar 31, 2017 Total Assets 1,830.5 1,948.5 1,839.9 Working Capital* 726.9 714.7 607.1 Intangibles, Net & Other 320.0 323.2 334.8 Long-Term Assets [$M] Mar 31, 2018 Dec 31, 2017 Mar 31, 2017 Cash, Cash Equivalents & 283.9 439.2 464.5 Short-term Investments
Slide 21: BSI and BEST GAAP Performance
Q1 2018 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q1 2018 Q1 2017 Δ REVENUE Scientific Instruments (BSI) 387.0 346.4 +12% Organic Revenue Growth (%) +3.8% -1.2% Energy & Supercon Technologies (BEST) 45.6 40.1 +14% Corporate Eliminations -0.9 -1.6 Energy & Supercon Technologies (BEST)