Slide 1: Q4 2019 Preliminary Operating Results
Bruker Corporation (Nasdaq: BRKR) Q4 2019 Preliminary Operating Results Frank Laukien, President & CEO Gerald Herman, Chief Financial Officer February 18, 2020 Miroslava Minkova, Director of Investor Relations & Corporate Development Innovation with Integrity
Slide 2: Safe Harbor
BRUKER CORPORATION Safe Harbor 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 1934, as amende
Slide 3: Q4 2019 & FY 2019 Business Update
Q4 2019 & FY 2019 Business Update 3
Slide 4: Q4 2019: Solid Revenue and Operating Income Growth, Margins Approximately Flat
Q4 2019: Solid Revenue and Operating Income Growth, Margins Approximately Flat Q4 2019 Preliminary Operating Results Year-over-Year Q4 Financials Revenues [$M] +8.4% ▪ Revenues increase +$46M, or +8.4% −Organic growth +5.2%, with BSI up +5.8%, and 599.9 553.6 BEST down -0.5% −Acquisitions add +4.3%
Slide 5: FY 2019: Strong Revenue and Operating Income Growth, Continued Margin Expansion
FY 2019: Strong Revenue and Operating Income Growth, Continued Margin Expansion FY 2019 Preliminary Operating Results Year-over-Year FY Financials Revenues [$M] +9.3% ▪ Revenues increase +177M, or +9.3% −Organic growth +5.7%, with BSI up +5.8%, and 2,073 BEST up +4.9% 1,896 −Acquisitions add +6.3% −
Slide 6: FY 2019 Revenue Performance Year-over-Year (BioSpin, CALID)
GROUP OVERVIEW: FY 2019 Revenue Performance Year-over-Year(1) Bruker BIOSPIN Group ▪ BIOSPIN up mid-single digits, with growth in systems revenue and aftermarket, and modest contributions from software acquisitions ▪ NMR systems revenue grows, including three GHz-class systems ▪ Preclinical imaging
Slide 7: FY 2019 Revenue Performance Year-over-Year (NANO, BEST)
GROUP OVERVIEW: FY 2019 Revenue Performance Year-over-Year(1) Bruker NANO Group ▪ NANO up low teens due to acquisitions; organic revenue flat, reflecting softer H2 2019 industrial and semicon metrology markets ▪ X-ray business grows, with continued academic demand ▪ Strong growth in nano-analysis to
Slide 8: First 1.1 GHz NMR Accepted, First 1.2 GHz Orders From the US and Asia
UPDATE ON PROJECT ACCELERATE First 1.1 GHz NMR Accepted, First 1.2 GHz Orders From the US and Asia “We are thrilled to have received the first 1.1 GHz NMR, which will be our most important tool to perform research in the area of dynamic molecular machines • Q4 2019: customer installation of world’s
Slide 9: Reshaping our portfolio for faster growth and higher margins
PROJECT ACCELERATE PORTFOLIO ROADMAP - 2020 UPDATE: Reshaping our portfolio for faster growth and higher margins* 2018 2019 2020E 2021E 2022E 2023E timsTOF Pro 4D Proteomics, 4D Lipidomics; 1.0 GHz NMR Proteomics & 1.1-1.2 GHz NMR, SpatialOMxTM Phenomics Mass spec phenomics, single cell proteomics H
Slide 10: Preliminary Financial Update
Q4 2019 & FY 2019 Preliminary Financial Update 10
Slide 11: Q4 2019 Revenue Bridge
Q4 2019 Revenue Bridge Q4 2019 DRIVERS Q4 2019 Revenue Growth Year-over-Year ▪ Reported revenue +8.4% Organic Currency Portfolio Total ▪ Organic revenue +5.2%, +5.2% -1.1% +4.3% +8.4% – BSI +5.8% organic – BEST down -0.5% organic (net of intercompany Q4 2019 Revenue Bridge [$M] eliminations) +$28.9M
Slide 12: Q4 2019 Preliminary Non-GAAP Operating Results Year-over-Year
Q4 2019 Preliminary Non-GAAP Operating Results Year-over-Year COMMENTS [$ m, except EPS] Q4 2019 Q4 2018 Δ ▪ Gross margin declines -10 bps, Total Revenues 599.9 553.6 +8.4% as gains at CALID and BioSpin are offset by NANO semi and Gross Profit 305.5 282.5 +8.1% industrial market headwinds Margin (%
Slide 13: FY 2019 Revenue Bridge
FY 2019 Revenue Bridge FY 2019 DRIVERS FY 2019 Revenue Growth Year-over-Year ▪ Reported revenue +9.3% Organic Currency Portfolio Total ▪ Organic revenue +5.7%, +5.7% -2.7% +6.3% +9.3% – BSI +5.8% organic – BEST +4.9% organic (net of intercompany eliminations) FY 2019 Revenue Bridge [$M] ▪ Acquisitio
Slide 14: FY 2019 Preliminary Non-GAAP Operating Results Year-over-Year
FY 2019 Preliminary Non-GAAP Operating Results Year-over-Year COMMENTS [$ m, except EPS] FY 2019 FY 2018 Δ Total Revenues 2,072.6 1,895.6 +9.3% ▪ Gross margin up +100 bps, driven by CALID operational Gross Profit 1,037.0 928.7 +11.7% improvements, accretive Margin (% of revenues) 50.0% 49.0% +100 bp
Slide 15: FY 2020 Preliminary Outlook
FY 2020 Preliminary Outlook 15
Slide 16: FY 2020 Preliminary Outlook: Mid-single digit organic revenue growth, further operating margin expansion
FY 2020 Preliminary Outlook(1): Mid-single digit organic revenue growth, further operating margin expansion FY 2020 Preliminary Outlook(1) 2020 ASSUMPTIONS ▪ FX assumptions Organic Revenue Growth y-o-y +4% to +5% (Dec. 31, 2019 rates): USD = 108.6 Yen EUR = 1.12 USD Non-GAAP Operating Margin +70 bps
Slide 17: Appendix
Appendix 17
Slide 18: Q4 2019 Preliminary GAAP Operating Results Year-over-Year
Q4 2019 Preliminary GAAP Operating Results Year-over-Year [$M, except EPS] Q4 2019 Q4 2018 Δ Total Revenues 599.9 553.6 +8% Gross Profit 296.3 272.8 +9% Margin (% of revenue) 49.4% 49.3% SG&A -130.3 -117.3 +11% (% of revenues) 21.7% 21.2% R&D -46.7 -44.8 +4% (% of revenues) 7.8% 8.1% Operating Incom
Slide 19: Q4 2019 Reconciliation of Preliminary GAAP and Non-GAAP Operating Results
Q4 2019 Reconciliation of Preliminary GAAP and Non-GAAP Operating Results Year-over-Year [$M, except EPS] Q4 2019 Q4 2018 GAAP Operating Income 117.7 106.4 Restructuring Costs 2.8 2.7 Acquisition-Related Costs 1.6 3.4 Purchased Intangible Amortization 9.1 7.4 Other Costs 1.3 2.9 TOTAL 14.8 16.4 Non-
Slide 20: FY 2019 Preliminary GAAP Operating Results Year-over-Year
FY 2019 Preliminary GAAP Operating Results Year-over-Year [$M, except EPS] FY 2019 FY 2018 Δ Total Revenues 2,072.6 1,895.6 +9% Gross Profit 995.3 900.0 +11% Margin (% of revenue) 48.0% 47.5% SG&A -500.2 -444.7 +12% (% of revenues) 24.1% 23.5% R&D -187.7 -173.4 +8% (% of revenues) 9.1% 9.1% Operatin
Slide 21: FY 2019 Reconciliation of Preliminary GAAP and Non-GAAP Operating Results
FY 2019 Reconciliation of Preliminary GAAP and Non-GAAP Operating Results Year-over-Year [$M, except EPS] FY 2019 FY 2018 GAAP Operating Income 300.9 262.4 Restructuring Costs 1.4 9.4 Acquisition-Related Costs 16.8 7.3 Purchased Intangible Amortization 38.3 28.9 Other Costs 6.6 9.9 TOTAL 63.1 55.5 N
Slide 22: BSI and BEST Preliminary GAAP Performance Year-over-Year (Q4 2019)
Q4 2019 GAAP SEGMENT RESULTS: BSI and BEST Preliminary GAAP Performance Year-over-Year [$ m] Q4 2019 Q4 2018 Δ REVENUE Scientific Instruments (BSI) 546.6 500.5 +9% Organic Revenue Growth (%) +5.8% +2.1% Energy & Supercon Technologies (BEST) 57.7 55.6 +4% Corporate Eliminations -4.4 -2.5 Energy & Sup
Slide 23: BSI and BEST Preliminary GAAP Performance Year-over-Year (FY 2019)
FY 2019 GAAP SEGMENT RESULTS: BSI and BEST Preliminary GAAP Performance Year-over-Year [$ m] FY 2019 FY 2018 Δ REVENUE Scientific Instruments (BSI) 1,877.6 1,707.0 +10% Organic Revenue Growth (%) +5.8% +4.7% Energy & Supercon Technologies (BEST) 209.9 194.8 +8% Corporate Eliminations -14.9 -6.2 Ener