Bruker Corporation · NASDAQ:BRKR

Bruker — Q4 2013 Earnings Presentation

25 slides from Bruker's earnings presentation, Feb 18, 2014

1. Slide 1: Q4 and FY 2013 Earnings Presentation

   Bruker Corporation (NASDAQ: BRKR) Q4 and FY 2013 Earnings Presentation Frank Laukien, President & CEO Charles Wagner, EVP & CFO February 18, 2014 Joshua Young, VP, Investor Relations Innovation with Integrity

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: Q4 & FY 2013 Business Update

   Q4 & FY 2013 Business Update © Bruker Corporation 3

4. Slide 4: Strong finish to 2013 driven by European academic markets, solid BioSpin performance

   Strong finish to 2013 driven by European academic markets, solid BioSpin performance Q4 2013 Performance Q4 Financials  Organic revenue growth of 6.2% y-o-y Revenues [$ m] +7% 1. Double-digit revenue growth in BioSpin driven by NMR demand in Europe; Pre- 552 Clinical Imaging division rebounds 517 2

5. Slide 5: Good revenue growth in life sciences, offset by industrial weakness; FX headwinds lower profitability

   Good revenue growth in life sciences, offset by industrial weakness; FX headwinds lower profitability FY 2013 Performance FY2013 Performance  Organic revenue growth of 3.2% Revenues [$ bn] +3% 1. BioSpin delivers high-single digit 1.84 revenue growth; double-digit growth in 1.79 bookings driven by

6. Slide 6: Group Overview: FY 2013 Performance (BioSpin, CALID)

   GROUP OVERVIEW: FY 2013 Performance Bruker BioSpin Group  Strong growth in both revenue and new order bookings  Performance driven by robust academic demand in Europe, Japan  Pre-Clinical Imaging Division rebounds and posts good growth for the year as more large MRI installations are completed in

7. Slide 7: Group Overview: FY 2013 Performance (BMAT, BEST)

   GROUP OVERVIEW: FY 2013 Performance Bruker MAT Group  Substantial weakness in industrial markets and Asia, particularly in semiconductor, data storage and microelectronics industry  New order bookings stabilized and grew in 2nd half of 2013  Bruker Nano Surfaces Division seeing good demand for AF

8. Slide 8: Transformation: significant progress in 2013 and continuing in 2014-2015

   Transformation: We have made significant progress in 2013 and will continue in 2014-2015 Leadership/Organization Processes/Systems Restructuring/Productivity • New CFO and three new • Transitioning to global • Launched restructuring Group presidents business model, from initiatives in all businesses

9. Slide 9: Q4 and FY 2013 Financial Update

   Q4 and FY 2013 Financial Update © Bruker Corporation 9

10. Slide 10: Q4 2013 Overview

    NON-GAAP FINANCIAL PERFORMANCE: Q4 2013 Overview [$ m, except EPS] Q4 2013 Q4 2012 Δ COMMENTS Revenues 552.1 517.3 7%  Margin expansion driven by lower operating expenses Operating Income 81.3 73.0 11%  FY13 EPS benefits from Margin (%) 14.7% 14.1% lower tax rate EPS 0.31 0.28 11%  Improving cash

11. Slide 11: Q4 2013 revenue bridge

    Q4 2013 revenue bridge Q4 2013 DRIVERS Q4 2013 Revenue Growth for Bruker Corp.  Solid organic revenue Acquisitions & growth to exit 2013 Organic Currency Divestitures Total  Positive currency impact 6.2% 0.4% 0.1% 6.7% primarily the result of a strengthening Euro  First quarter of BMAT revenues f

12. Slide 12: Q4 2013 Non-GAAP Results

    Q4 2013 Non-GAAP Results [$ m] Q4 2013 Q4 2012 Δ COMMENTS Total Revenues 552.1 517.3 7%  BioSpin and CALID drive higher revenues Gross Profit 248.3 246.4 1% Margin (% of sales) 45.0% 47.6%  Gross margins lowered by currency and mix SG&A -117.9 -123.1 -4% (% of revenues) 21.4% 23.8%  Solid control

13. Slide 13: Q4 2013 Reconciliation of GAAP to Non-GAAP Results

    Q4 2013 Reconciliation of GAAP to Non-GAAP Results [$ m] Q4 2013 Q4 2012 GAAP Operating Income 61.0 39.2 Restructuring Costs 11.7 0.5 Acquisition Related Costs 2.3 0.2 Purchased Intangible Amortization 5.4 5.8 Other Costs 0.9 27.3 TOTAL 20.3 33.8 Non-GAAP Operating Income 81.3 73.0 Non-GAAP Net Inte

14. Slide 14: FY 2013 Non-GAAP Results

    FY 2013 Non-GAAP Results [$ m] FY 2013 FY 2012 Δ Total Revenues 1,839.4 1,791.4 3% Gross Profit 832.5 851.3 -2% Margin (% of sales) 45.3% 47.5% SG&A -436.5 -437.0 NM (% of revenues) 23.7% 24.4% R&D -190.5 -195.3 -2% (% of revenues) 10.4% 10.9% Operating Income 205.5 219.0 -6% (% of revenues) 11.2% 1

15. Slide 15: FY 2013 Reconciliation of GAAP to Non-GAAP Results

    FY 2013 Reconciliation of GAAP to Non-GAAP Results [$ m] FY 2013 FY 2012 GAAP Operating Income 148.2 156.0 Restructuring Costs 25.3 0.9 Acquisition Related Costs 4.5 3.1 Purchased Intangible Amortization 20.7 22.0 Other Costs 6.8 37.0 TOTAL 57.3 63.0 Non-GAAP Operating Income 205.5 219.0 Non-GAAP Ne

16. Slide 16: Balance sheet

    Balance sheet [$ m] Dec 31, 2013 Dec 31, 2012 Δ Total Assets 1,988.3 1,856.4 7% Equity 850.2 709.7 20% Cash & Cash Equivalents 438.7 310.6 41% Inventory 589.8 611.5 -4% Intangible & Other Assets 256.9 263.1 -2% Financial Debt 355.0 337.2 5% Net Cash/(Debt) 83.7 (26.6) 415% © Bruker Corporation 16

17. Slide 17: FY 2013 Cash Flow Statement

    FY 2013 Cash Flow Statement [$ m] FY 2013 FY 2012 Δ Net Income 81.8 78.2 3.6 Depreciation & amortization 61.3 59.1 2.2 Changes in working capital -10.6 -52.3 41.7 Other 12.5 48.1 -35.6 Operating cash flow 145.0 133.1 11.9 Capital expenditures -50.3 -72.8 22.5 Free cash flow 94.7 60.3 34.4 © Bruker C

18. Slide 18: 2014 Guidance

    2014 Guidance © Bruker Corporation 18

19. Slide 19: FY 2014 Guidance

    FY 2014 Guidance Bruker FY 2014 Guidance ASSUMPTIONS  Similar level of top-line Revenue Growth (reported) 3% to 4% growth from all three Groups: BioSpin, CALID, and BMAT Restructuring Costs ~$15-$20M  Less than $50M of capex spending  After strong Q4-13, Q1-14 Non-GAAP Tax Rate ~29%-30% financial

20. Slide 20: Appendix

    Appendix © Bruker Corporation 20

21. Slide 21: Q4 2013 GAAP Results

    Q4 2013 GAAP Results [$ m] Q4 2013 Q4 2012 Δ Total Revenues 552.1 517.3 7% Gross Profit 235.9 241.7 -2% Margin (% of sales) 42.7% 46.7% SG&A -118.3 -124.0 -5% (% of revenues) 21.4% 24.0% R&D -49.1 -50.3 -2% (% of revenues) 8.9% 9.7% Operating Income 61.0 39.2 56% (% of revenues) 11.0% 7.6% Net Incom

22. Slide 22: FY 2013 GAAP Results

    FY 2013 GAAP Results [$ m] FY 2013 FY 2012 Δ Total Revenues 1,839.4 1,791.4 3% Gross Profit 805.2 829.4 -3% Margin (% of sales) 43.8% 46.3% SG&A -437.9 -440.4 -1% (% of revenues) 23.8% 24.6% R&D -190.5 -195.3 -2% (% of revenues) 10.4% 10.9% Operating Income 148.2 156.0 -5% (% of revenues) 8.1% 8.7%

23. Slide 23: FY 2013 revenue bridge

    FY 2013 revenue bridge FY 2013 Revenues for Bruker Corp. Acquisitions & Organic Currency Divestitures Total 3.2% -0.3% -0.2% 2.7% YTD 2013 Revenue bridge [$ m] 57.1 -5.3 -3.8 1,791.4 1,839.4 FY 2012 Organic Currency Acquisition FY 2013 © Bruker Corporation 23

24. Slide 24: Q4 2013 Cash Flow Statement

    Q4 2013 Cash Flow Statement [$ m] Q4 2013 Q4 2012 Δ COMMENTS Net Income 35.9 13.3 22.6  Strong free cash flow Depreciation & amortization 15.9 16.6 -0.7  Improvement in working capital primarily result of better management of Changes in working capital* 22.0 -9.5 31.5 inventory Other 57.6 70.5 -12

25. Slide 25: BSI and BEST GAAP Performance

    Q4 SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q4 2013 Q4 2012 Δ REVENUE Scientific Instruments (BSI) 511.0 482.1 6% Organic Revenue Growth (%) 5.9% 9.2% Energy & Supercon Technologies (BEST) 46.6 37.8 23% Organic Revenue Growth (%) 17.4% 16.5% Corporate Eliminations & Other -5.5 -2.6 Total

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