Bruker Corporation · NASDAQ:BRKR
Bruker — JPMorgan 2015 Healthcare Conference
26 slides from Bruker's conference presentation, Jan 14, 2015
Slide 1: Bruker drives profitable growth by enabling breakthrough discoveries
Bruker drives profitable growth by enabling breakthrough discoveries & development of new applications that improve the quality of human life. © Bruker Corporation 1
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 as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are
Slide 3: Agenda
Agenda 1. Company Overview 2. Innovation & Transformation 3. Operational Initiatives & Financials © Bruker Corporation 3
Slide 4: Bruker's high-value scientific instruments enable scientists to explore life and materials
Bruker’s high-value scientific instruments enable scientists to explore life and materials at … Microscopic Small Molecule and Cellular and and Nano-Scales Protein Molecular Levels Sub-Cellular Levels © Bruker Corporation 4
Slide 5: Bruker fast facts
Bruker fast facts: Percentage of revenue: • FY2014 revenues of ~$1.8 billion Europe • ~10% R&D investment 42% • Global company with 83% of revenues from outside U.S. • ~90% of revenues derived from scientific instrumentation United States 18% • ~6,000 employees worldwide 32% Asia Pacific 8% • Stable
Slide 6: Our products and expertise help drive advances in life science research
Our products and expertise help to drive advances in life science research, pharma, applied markets, nanotechnology, cell biology, clinical research, microbiology and IVD. © Bruker Corporation 6
Slide 7: We are organized around three key Groups
We are organized around three key Groups: Bruker BioSpin Group Bruker CALID Group Bruker Nano Group - NMR & EPR for Life-Science - Mass Spectrometry for - AFM & Nanoanalysis Research and Pharma • Proteomics & Metabolomics - Fluorescence Microscopy for Cell - Applied, Industrial & Clinical MR • Appli
Slide 8: Leading market positions for much of our product portfolio
…which has created leading market positions for much of our product portfolio #1 or #2 market position for: NMR/EPR & Preclinical MALDI ID in Atomic Force FT-IR/FT-MIR Metabolomics Imaging & Microbiology Microscopy XRD/SCD MALDI Imaging (1,500 units) © Bruker Corporation 8
Slide 9: Agenda
Agenda 1. Company Overview 2. Innovation & Transformation 3. Operational Initiatives & Financials © Bruker Corporation 9
Slide 10: Further Evolution of Bruker Strategy
Further Evolution of Bruker Strategy: Innovate, expand core business, and invest for profitable growth in 4 key areas © Bruker Corporation 10
Slide 11: 1. Life Science Molecular Research
1. Life Science Molecular Research • Small molecules, lipids, peptides, proteins, carbohydrates, protein- protein/DNA/RNA complexes • Bottom-up and top-down proteomics • Proteoform profiling, intact protein characterization • Structural biology, protein dynamics & functions • Intrinsically Disordere
Slide 12: 2. Applied & Pharma
2. Applied & Pharma • Food safety, authenticity, composition • Forensics, toxicology, drugs of abuse • CBRNE Detection: Defense, Critical Infrastructure, Explosive Trace Detection • Fragment-Based Drug Discovery and Lead Optimization by NMR • Small Molecule Qual/Quant and Structure Verification/Eluc
Slide 13: New Applied Market for Bruker: Forensic Toxicology
New Applied Market for Bruker: Forensic Toxicology Novel Toxtyper™ Solution for Forensic Screening • Fast, easy identification & confirmation of drugs and metabolites (11 min LC-MS run) • Ready to use LC-MSn methods • High-quality library of toxicologically relevant substances (900) + Drugs of Abuse
Slide 14: New Applied Market for Bruker: Explosives Trace Detection
New Applied Market for Bruker: Explosives Trace Detection (ETD) ETD Market Segment: Aviation Security • Mandatory ECAC certification in EU in 2015 • ETD aviation security requirement in EU up to 900 systems • Bruker has received order for 50 DE-tector™ systems for Northern/Eastern German airports in
Slide 15: 3. Nano-Analysis, Microscopy, Advanced Materials
3. Nano-Analysis, Micro- scopy, Advanced Materials • Advanced materials, surface & crystal analysis • Novel and nano materials, nanobiology • Cell Biology: neuroscience and live cell imaging research • Chemical Microscopy • New advanced semiconductor metrology division • Natural Resources and Other
Slide 16: Bruker's New Fluorescence Microscopy Business
Bruker’s New Fluorescence Microscopy (FM) Business: Fast, Deep & Super-Resolution Cellular/Neural Imaging Opterra™ imaging live mitochondria Ultima™ imaging zebra fish retina Vutara™ imaging neurons at 25nm • High-speed confocal FM for real- • Image deep into the brain to • Image nano-structures in
Slide 17: 4. Clinical Research & Molecular Diagnostics
4. Clinical Research & Molecular Diagnostics • Preclinical and molecular imaging, including translational research, intraoperative cancer imaging (RUO) • Clinical microbiology: MBT ID, selected resistance assays (RUO) • Clinical proteomics and metabolomics (RUO) • Phenome centers • Clinical Research
Slide 18: Multi-year transformation to improve operational performance
We are continuing to execute a multi-year transformation to improve operational performance 2013 2014 2015 2016 Bruker Outsourcing BioSpin Rightsizing Footprint Consolidation Bruker BNS Outsourcing BAXS, BELE, BNA Outsourcing Nano Rightsizing FP Consolidation CAM Divestitures Bruker FP Consolidation
Slide 19: Agenda
Agenda 1. Company Overview 2. Innovation & Transformation 3. Operational Initiatives & Financials © Bruker Corporation 19
Slide 20: Changes to organization, systems & commercial capabilities
We are making important changes to our organization, systems & commercial capabilities Organization & Systems Commercial -Reorganized; new leaders -Applications-based marketing -Clear performance metrics & incentives -Reorganization of sales forces -Improved management processes -New CRM & sales man
Slide 21: Initiatives to reduce costs and improve efficiency
We are also executing initiatives to reduce costs and improve efficiency Outsourcing/ Resource Portfolio Facilities Procurement IT Systems Allocation • Divested/shut • Exited small plants • Professionally • New financial • Operating down unprofitable and streamlined manage spending consolidation spe
Slide 22: Progress and challenges: successes and headwinds
Despite considerable progress, we have faced challenges that have offset our achievements Successes Headwinds • Management changes • Currency: weakening Yen • Outsourcing initiatives • CAM operating losses • CAM divestitures • Prolonged downturn in • Lower operating expenses semiconductor & data sto
Slide 23: Financial performance has been stable, with improvements offset by headwinds
Financial performance has been stable, with improvements offset by headwinds Revenue [$m] Non-GAAP EPS $0.83 $0.77 $0.75* 1,839 1,825* 1,791 2012 2013 2014E 2012 2013 2014E *Represents mid-point of company guidance provided on November 6, 2014
Slide 24: Improving free cash flow has strengthened our balance sheet
Improving free cash flow has strengthened our balance sheet Free Cash Flow as % of revenue Net (Debt)/Cash 7.6% $84M $87M 5.1% 3.4% ($27M) 2012 2013 2014–TTM* 2012 2013 2014–YTD* * As of September 30, 2014 * as of 9/30/2014 © Bruker Corporation 24
Slide 25: The Bruker Investment Opportunity
The Bruker Investment Opportunity • Differentiated, premium franchise serving attractive markets • Strong innovation capabilities • Significant opportunity to transform operations: higher operating margins, EPS and free cash flow • Concrete actions being taken to capitalize on potential and create v
Slide 26: www.bruker.com
www.bruker.com © Bruker Corporation 26