Slide 1: Bruker Corporation Q3 2015 Earnings Presentation
Bruker Corporation (NASDAQ: BRKR) Q3 2015 Earnings Presentation Frank Laukien, President & CEO Anthony Mattacchione, SVP & Interim CFO November 4, 2015 Joshua Young, VP, IR & Corporate Development 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 as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained he
Slide 3: Q3-15 & YTD 2015 Business Update
Q3-15 & YTD 2015 Business Update © Bruker Corporation 3
Slide 4: Bruker delivers stronger, more balanced financial performance in Q3 2015
Bruker delivers stronger, more balanced financial performance in Q3 2015 Q3 2015 Performance Revenues decline -$24m, or -6% y-o-y Q3 Financials − FX headwinds lower revenue -11% y-o-y Revenues [$ m] -6% Organic revenue growth of +8% y-o-y, driven by CALID and BioSpin Groups 420 396 − Europe & As
Slide 5: Q3-YTD Bruker on track for margin expansion, earnings growth and cash flow
Q3-YTD Bruker is on track for a year of good margin expansion, earnings growth and cash flow generation Q3 YTD 2015 Performance YTD Financials Revenues decline -12% y-o-y Revenues [$ m] -12% Organic revenue growth of +2% y-o-y 1,301 1. High-single digit organic revenue growth 1,146 from CALID Gr
Slide 6: Group Overview: Q3 2015 Performance
GROUP OVERVIEW: Q3 2015 Performance Bruker BIOSPIN Group Strong revenue growth for Nuclear Magnetic Resonance (NMR) as business rebounds in all major geographies NMR business recovery continues as order bookings remain healthy Preclinical imaging business reports mid-single digit organic growt
Slide 7: Group Overview: Q3 2015 Performance
GROUP OVERVIEW: Q3 2015 Performance Bruker NANO Group Organic revenue and bookings decline due to weaker demand from most industrial market segments AXS Division posts mid-single digit organic revenue growth: strong demand for X-ray diffraction products and improved execution Nano Surfaces Div
Slide 8: Acquisition of Jordan Valley Semiconductor closed
Acquisition of Jordan Valley Semiconductor closed enables new Bruker Semiconductor Division to capitalize on semi trends to 3D features & smaller size nodes for: Social Media Cloud Computing Wearable/Portable Electronics Xeon + FPGA for Data Center A9 processor V - NAND 10nm FinFET 14nm FinFET 3D NA
Slide 9: Key Messages after Q3 2015
Key Messages after Q3 2015: Bruker is on track to meet or exceed its FY15 guidance for organic revenue growth, margin expansion and EPS BIOSPIN Group is recovering after a weak start in H1 2015 CALID Group is successfully driving the adoption of new products and generating higher growth and margins
Slide 10: Q3 2015 Financial Update
Q3 2015 Financial Update © Bruker Corporation 10
Slide 11: Q3 2015 Overview
NON-GAAP FINANCIAL PERFORMANCE: Q3 2015 Overview [$ m, except EPS] Q3 2015 Q3 2014 Δ COMMENTS Revenues 396.1 419.8 -6% Strong operating margin expansion aided by an easy Operating Income 52.8 35.9 47% Q3-14 comparison and absence of CAM results Margin (%) 13.3% 8.6% Strong cash flow generation E
Slide 12: Q3 2015 revenue bridge
Q3 2015 revenue bridge Q3 2015 DRIVERS Q3 2015 Revenue for Bruker Corp. CALID and BioSpin Group drive organic Organic Currency Divestitures Total revenue increase 8.1% -10.9% -2.8% -5.6% Strong currency headwinds Q3 2015 Revenue Bridge [$ m] +$33.2 -$45.8 -$11.1 $419.8M $396.1M Q3 2014 Organic C
Slide 13: Q3 2015 Non-GAAP Results
Q3 2015 Non-GAAP Results [$ m, except EPS] Q3 2015 Q3 2014 Δ COMMENTS Total Revenues 396.1 419.8 -6% Gross margin Gross Profit 182.7 185.5 -2% improvement is primarily Margin (% of revenues) 46.1% 44.2% the result of increased volume, positive product SG&A -95.6 -107.5 -11% mix, restructuring (% o
Slide 14: Q3 2015 Reconciliation of GAAP and Non-GAAP Results
Q3 2015 Reconciliation of GAAP and Non-GAAP Results [$ m, except EPS] Q3 2015 Q3 2014 GAAP Operating Income 28.2 4.9 Restructuring Costs 12.7 16.2 Acquisition-Related Costs 1.2 1.4 Purchased Intangible Amortization 5.1 5.1 Other Costs 5.6 8.3 TOTAL 24.6 31.0 Non-GAAP Operating Income 52.8 35.9 Non-G
Slide 15: Q3-15 YTD revenue bridge
Q3-15 YTD revenue bridge Q3-15 YTD DRIVERS Q3-15 YTD Revenue for Bruker Corp. Organic revenue growth of 1.9% driven by CALID Organic Currency Divestitures Total Group 1.9% -11.1% -2.7% -11.9% Europe is strongest region on YTD basis Q3-15 YTD Revenue Bridge [$ m] +$23.9 -$145.2 -$34.0 $1,300.9M $
Slide 16: Q3-15 YTD Non-GAAP Results
Q3-15 YTD Non-GAAP Results [$ m, except EPS] Q3-15 YTD Q3-14 YTD Δ COMMENTS Total Revenues 1,145.6 1,300.9 -12% CALID drives most of Gross Profit 528.2 584.5 -10% gross margin Margin (% of revenues) 46.1% 44.9% improvement SG&A -287.7 -331.2 -13% – CAM divestments in (% of revenues) 25.1% 25.5% 20
Slide 17: Q3-15 YTD Reconciliation of GAAP and Non-GAAP Results
Q3-15 YTD Reconciliation of GAAP and Non-GAAP Results [$ m, except EPS] Q3-15 YTD Q3-14 YTD GAAP Operating Income 75.0 60.9 Restructuring Costs 21.2 29.3 Acquisition-Related Costs -1.4 3.0 Purchased Intangible Amortization 15.5 15.1 Other Costs 21.2 12.4 TOTAL 56.5 59.8 Non-GAAP Operating Income 131
Slide 18: Q3-15 Cash Flow Statement
Q3-15 Cash Flow Statement [$ m] Q3 2015 Q3 2014 Δ COMMENTS Net Income 12.9 6.3 6.6 Higher gross margins, lower restructuring costs result in higher net Depreciation & amortization 13.3 17.6 -4.3 income Changes in working capital* -3.0 -16.0 13.0 Working capital efficiency continues to improve Ot
Slide 19: Full Year 2015 Outlook
Full Year 2015 Outlook © Bruker Corporation 19
Slide 20: We are increasing our FY-2015 Guidance
We are increasing our FY-2015 Guidance Updated FY 2015 Guidance 2015 ASSUMPTIONS Changes in currency Organic Revenue Growth Approximately +1% reduce revenues by (-10%) FX generates -13% or Non-GAAP Operating >150 bps (-$0.10) headwind to Margin Expansion y-o-y non-GAAP EPS in 2015 CAM revenues
Slide 21: Appendix
Appendix © Bruker Corporation 21
Slide 22: Q3 2015 GAAP Results
Q3 2015 GAAP Results [$ m, except EPS] Q3 2015 Q3 2014 Δ Total Revenues 396.1 419.8 -6% Gross Profit 167.5 167.3 NM Margin (% of sales) 42.3% 39.9% SG&A -96.1 -108.0 -11% (% of revenues) 24.3% 25.7% R&D -34.3 -42.1 -19% (% of revenues) 8.7% 10.0% Operating Income 28.2 4.9 476% (% of revenues) 7.1% 1
Slide 23: Balance sheet
Balance sheet [$ m] Sep 30, 2015 Sep 30, 2014 Dec 31, 2014 Total Assets 1,842.9 1,910.6 1,864.8 Working Capital* 633.2 737.2 694.6 Intangibles, Net & Other Long-Term 224.1 245.9 248.6 Assets [$ m] Sep 30, 2015 Sep 30, 2014 Dec 31, 2014 Cash, Cash Equivalents & Short-term 532.3 442.3 497.5 Investment
Slide 24: Q3-15 YTD GAAP Results
Q3-15 YTD GAAP Results [$ m, except EPS] Q3-15 YTD Q3-14 YTD Δ Total Revenues 1,145.6 1,300.9 -12% Gross Profit 497.1 547.5 -9% Margin (% of sales) 43.4% 42.1% SG&A -289.2 -332.5 -13% (% of revenues) 25.2% 25.6% R&D -109.0 -132.6 -18% (% of revenues) 9.5% 10.2% Operating Income 75.0 60.9 23% (% of r
Slide 25: Q3-15 YTD Cash Flow Statement
Q3-15 YTD Cash Flow Statement [$ m] Q3-15 YTD Q3-14 YTD Δ Net Income 42.9 33.1 9.8 Depreciation & amortization 40.0 47.6 -7.6 Changes in working capital* 11.4 2.8 8.6 Other -14.7 -38.5 23.8 Operating cash flow 79.6 45.0 34.6 Capital expenditures -22.8 -26.7 3.9 Free cash flow 56.8 18.3 38.5 © Bruker
Slide 26: BSI and BEST GAAP Performance
Q3-15 GAAP SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q3 2015 Q3 2014 Δ REVENUE Scientific Instruments (BSI) 366.6 383.4 -4% Organic Revenue Growth (%) 9.3% -7.1% Energy & Supercon Technologies (BEST) 32.9 40.0 -18% Organic Revenue Growth (%) -2.6% 22.6% Corporate Eliminations -3.4 -3.6 To