Bruker Corporation · NASDAQ:BRKR
Bruker — Stifel 2019 Healthcare Conference
22 slides from Bruker's conference presentation, Nov 19, 2019
Slide 1: Stifel 2019 Healthcare Conference
Bruker Corporation Stifel 2019 Healthcare Conference November 19, 2019 © Bruker Corporation Innovation with Integrity
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 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
Slide 3: Bruker History
Bruker History Approaching 60 years of Innovation 2013-today Acquires multi- 2008 photon, super-res Bruker Corp. and light-sheet FM; 1960 2000 merges with Bruker forms Semi Bruker co-founded Biospin division, acquires by Prof. G. Laukien Bruker 1980s-today Jordan Valley & Rave Daltonics (BDAL) Devel
Slide 4: Bruker Overview: 2018 revenue mix
Bruker Overview Our 2018 revenue mix Business Group Mix Geographic Mix Bruker Scientific Instruments Segment Market Mix Academic & Govt 47% Research BIOSPIN Industrial Research 21% Group 31% NANO & Other Industrial 30% Group Pharma & 14% 30% 37% 29% Biopharma 10% 29% Microbiology & 7% BEST Molecular
Slide 5: Our people, production and R&D
Bruker Overview Our people, production and R&D 6,900 14 1,200 4,000 + Employees Major manufacturing Employees dedicated Patents pending or sites in N. America, to R&D granted Europe and Asia 5
Slide 6: Market leading positions
Bruker Overview Market leading positions(1) NMR and EPR Preclinical Imaging: MRI, Mass Spec Imaging, Atomic Force Spectroscopy MPI, PET/MR, microCT MALDI-TOF and MRMS Microscopy (AFM) FT-IR/NIR Spectroscopy X-Ray Diffraction (XRD) Next-Gen AAFM and X-ray BEST Superconductors and and Microscopy and C
Slide 7: Bruker's Strategy
Bruker’s Strategy Project Accelerate & Operational Excellence drive customer success and profitable growth • Transforming our portfolio for attractive secular growth trends • Driving key product innovation cycles Profitable • Advancing six high-growth, high- Growth margin Project Accelerate initiati
Slide 8: Positioned for Key Secular Growth Trends
Positioned for Key Secular Growth Trends Crucial growth drivers do not depend significantly on macro trends or geography Next-generation proteomics Beyond ss-RNA-Seq: Human Brain Project drives Precision Medicine drives In vivo life-cell microscopy, and phenomics; emergence Human Cell Atlas & neuros
Slide 9: Project Accelerate
Project Accelerate Seeking faster revenue growth from six targeted high-growth, Proteomics & high-margin initiatives Phenomics Aftermarket Proteomics & Phenomics Aftermarket Biopharma & Services, consumables for Bruker LST & Applied High-performance NMR and MS DX solutions; emerging scientific solut
Slide 10: Project Accelerate Portfolio Roadmap
Project Accelerate Portfolio Roadmap Reshaping our portfolio for faster growth and higher margins* 2018 2019E 2020E 2021E 2022E 2023E Proteomics & timsTOF Pro 4D Proteomics, 4D Lipidomics; 1.0 GHz NMR Phenomics Mass spec-based Phenomics, 1.1-1.2 GHz NMR Biopharma & Advanced NMR and MS solutions for
Slide 11: Historical Growth
Historical Growth Solid Revenue Growth Driven Organically and by Acquisitions Revenue Growth By Geography By Business Group $2.04B BIOSPIN Group APAC $1.9B 29% 31% 30% NANO Group Europe 37% $1.8B $1.6B 4% 10% 30% Rest of World 29% BEST Group Americas CALID Group 2016A 2017A 2018A 2019G Drivers Marke
Slide 12: Historical Profitability
Historical Profitability Operating Margin Expansion and EPS Growth Led by Mix and Operational Excellence Non-GAAP Operating Profit Margin Non-GAAP EPS (OPM) $1.605 17.85% 16.8% 15.9% $1.40 15.0% $1.19 $1.21 2016A 2017A 2018A 2019G 2016A 2017A 2018A 2019G Drivers Volume and Product Mix Operational Ex
Slide 13: Year-To-Date Q3 2019: Solid revenue growth and strong EPS increase
Year-To-Date (YTD) Q3 2019: Solid revenue growth and strong EPS increase YTD Q3-19 Performance Year-over-Year YTD Q3 2019 Financials Revenues [$M] +9.7% ▪ Revenues increase +131M, or +9.7% −Organic growth +6.0%, with BSI up +5.8%, and BEST up +7.0% 1,342 1,473 −Acquisitions add +7.0% −Constant curre
Slide 14: FY 2019 Guidance
FY 2019 Guidance(1): Strong Revenue Growth, Operating Margin Expansion and EPS Growth FY 2019 Guidance 2019 ASSUMPTIONS ▪ Organic revenue growth: +4.5% to +5.5% Revenue Growth y-o-y +7% to +8% ▪ Acquisition revenue growth: approximately +5.5% Non-GAAP Operating Margin +90 bps to +120 bps ▪ Constant
Slide 15: Capital Deployment Strategy
Capital Deployment Strategy Invest Maintain Return in Growing the Business Financial Flexibility Capital to Shareholders • R&D investments • Strong, flexible balance sheet • Current targeted annual • Market Development • Conservative debt levels dividend of $0.16 per share • CapEx investments • Peri
Slide 16: Questions and Answers
Questions and Answers © Bruker Corporation Innovation with Integrity
Slide 17: Appendix
Appendix © Bruker Corporation 17
Slide 18: Non-GAAP Financial Reconciliation of Forward-Looking Statements
Non-GAAP Financial Reconciliation of Forward-Looking Statements With respect to the Company’s guidance for 2019 non-GAAP organic revenue growth, non-GAAP operating margin, non-GAAP EPS and non-GAAP tax rate, we are not providing the most directly comparable GAAP financial measures or corresponding r
Slide 19: Reconciliation of GAAP to NON-GAAP Financial Measures
Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (unaudited) 9 months ended (in millions, except per share amounts) Twelve Months Ended December 31, September 30, 2016 (1) 2017 (1) 2018 2019 Reconciliation of Non-GAAP Operating Income, Non- GAAP Profit Before Tax, Non-GAAP Ne
Slide 20: Reconciliation of GAAP to NON-GAAP Financial Measures
Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (unaudited) 9 months ended (in millions, except per share amounts) Twelve Months Ended December 31, September 30, 2016 (1) 2017 (1) 2018 2019 Reconciliation of GAAP and Non-GAAP Gross Profit GAAP Gross Profit $ 745.3 $ 816.0 $
Slide 21: Reconciliation of GAAP to NON-GAAP Financial Measures
Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (unaudited) 9 months ended (in millions, except per share amounts) Twelve Months Ended December 31, September 30, 2016 (1) 2017 (1) 2018 2019 Reconciliation of GAAP and Non-GAAP Earnings Per Share (Diluted) GAAP Earnings Per Sh
Slide 22: Reconciliation of GAAP to NON-GAAP Financial Measures
Bruker Corporation Reconciliation of GAAP to NON-GAAP Financial Measures (unaudited) 9 months ended (in millions, except per share amounts) Twelve Months Ended December 31, September 30, 2016 (1) 2017 (1) 2018 2019 Reconciliation of Impact of Adoption of ASU 2017-07 Cost of revenues (2.8) (3.0) (2.1