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Bruker Corporation (NASDAQ: BRKR)
Q1 2015 Earnings Presentation
Frank Laukien, President & CEO
Charles Wagner, EVP & CFO
Joshua Young, VP, Investor RelationsMay 6, 2015
Innovation with Integrity
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 based on current expectations, but are subject to
risks and uncertainties that could cause actual results to differ materially from those projected, including,
but not limited to, risks and uncertainties relating to adverse changes in conditions in the global economy
and volatility in the capital markets, the integration of businesses we have acquired or may acquire in the
future, changing technologies, product development and market acceptance of our products, the cost and
pricing of our products, manufacturing, competition, dependence on collaborative partners and key
suppliers, capital spending and government funding policies, changes in governmental regulations,
realization of anticipated benefits from economic stimulus programs, intellectual property rights,
litigation, and exposure to foreign currency fluctuations and other risk factors discussed from time to time
in our filings with the Securities and Exchange Commission. These and other factors are identified and
described in more detail in our filings with the SEC, including, without limitation, our annual report on
Form 10-K for the year ended December 31, 2014. We will also be referencing non-GAAP financial
measures in this presentation. A reconciliation of non-GAAP to GAAP results is available in our earnings
press release and in this presentation.
Bruker Corporation
Safe Harbor & Reg. G Statement
© Bruker Corporation 2
Q1 2015 Business Update
© Bruker Corporation 3
$0.11
$0.14
Q1-14
Q1-15
Q1-15 Financials
Revenues [$ m]
Non-GAAP EPS
Restructuring & operational initiatives drive higher
profit and free cash flow, despite lower revenue
-17%
+27%
© Bruker Corporation 4
424
354
Q1-14 Q1-15
Q1 2015 Performance
 Revenues decline $70m, or -17% y-o-y
− Changes in foreign exchange lower
revenues by $47M, or -11% y-o-y
− CAM divestitures result in $12M y-o-y
revenue decline
 Organic revenue decline of -3.0%, mostly due
to lower NMR revenue
 Non-GAAP EPS of $0.14, or 27% growth y-o-y
− CAM restructuring plus operational and
commercial excellence initiatives drive
EPS up by +$0.05 y-o-y
− Currency reduces EPS by ($0.02) y-o-y
− Net effect is +$0.03 non-GAAP EPS
increase y-o-y
Bruker BIOSPIN Group
 Weak NMR order bookings in 2014 drive revenue decline in Q1-15
 NMR new order bookings improving in Q1-15
 New pricing and commercial practices put in place during Q1-15
 Negotiations with workers councils to finalize restructuring plans are
expected to be completed in May 2015
 Next-gen GHz technology launch reflects commitment to innovation;
customer reaction positive; IDPs create new UHF-NMR demand;
Bruker CALID Group
 Low single-digit organic revenue growth and significant improvement
in profitability in Q1-15
 CAM Division restructuring successfully completed in Q1-15, one
quarter ahead of schedule
 Daltonics Division benefits from strong Q1-15 performance of MALDI
Biotyper; US-FDA cleared expanded claim 2; April launch of CE-
marked Sepsityper solution and high-end MALDI Biotypersmart
 Detection Division Q1-15 performance benefits from export licenses;
books important Explosives Trace Detection orders for EU airports;
5© Bruker Corporation
GROUP OVERVIEW:
Q1 2015 Performance
Bruker NANO Group
 Low single-digit organic revenue growth driven by solid Q1-15 for
the AXS Division
 Group achieves higher profitability y-o-y due to 2013-2014
restructuring, new products and continued expense controls
 AXS Division grows revenue in all product lines
 Demand in Asia remains weak, particularly for industrial markets
 BNS new BioAFM and Fluorescence Microscopy products doing well
BEST Segment
 Low single-digit organic revenue decline primarily driven by timing
and completion of prior year “Big Science” projects
 Solid execution in improving working capital, particularly inventory
 Expect improvements in BEST financial performance from Q1-15
levels over the remainder of the year
GROUP OVERVIEW:
Q1 2015 Performance
6© Bruker Corporation
Bruker 2015 Priorities
© Bruker Corporation 7
Continue transformation of leadership,
management processes, and systems
Execute BIOSPIN rightsizing and factory
consolidation
Accelerate further outsourcing of high-
level assemblies in CALID and NANO
Drive profitable growth initiative
• New high-performance products
• New high-value analytical and clinical
solutions
• Entry into adjacent markets
Progress with Profitable Growth Initiative
© Bruker Corporation 8
• Next-generation Explosives Trace Detectors (ETD)
qualified under new European passenger and cargo
requirements; major contract win in Germany; significant
opportunity;
• Next-generation GHz NMR technology launched for
molecular biology and pathogenesis research on
Intrinsically Disordered Proteins (IDPs); IDPs play major
role in cancer and neurodegenerative diseases;
• MALDI Biotyper: China business growing; Clearance of
expanded 2nd US FDA claim; April launch of high-end
MALDI Biotypersmart system and CE-marked
MALDI Sepsityper solution;
IDPs by NMR Video: http://www.idpbynmr.eu/home/video.html
Q1 2015 Financial Update
© Bruker Corporation 9
NON-GAAP FINANCIAL PERFORMANCE:
Q1 2015 Overview
[$ m, except EPS] Q1 2015 Q1 2014 Δ
Revenues 353.5 423.7 -17%
Operating Income 35.8 32.1 12%
Margin (%) 10.1% 7.6%
EPS $0.14 $0.11 27%
Free Cash Flow 21.3 9.3 12.0M
 Non-GAAP operating margins
increase y-o-y due to CAM
divestitures and operational
improvement initiatives
 Free cash flow increase
driven by improvement in
working capital and lower
capex spending
 Working capital ratios
improve as result of
improved operations,
outsourcing and currency
changes
10© Bruker Corporation
COMMENTS
[$ m] Mar 31, 2015 Mar 31, 2014 Δ
Net Cash 137.7 99.2 39%
Working capital (WC)* 614.4 799.1 -23%
WC-to-revenue ratio 0.35 0.43 -0.08
* WC = (Accounts Receivable +
Inventory – Accounts Payable)
Q1 2014 Organic Currency Divestitures Q1 2015
$423.7M
$353.5M
Q1 2015 revenue bridge
 Organic revenue decline
of -3.0%
 Retained CAM products
included in organic
growth calculation,
divested assets excluded
 Weaker Euro drove
approximately 70% of
the $47M decline in
revenues from FX rates
11© Bruker Corporation
FY 2015 DRIVERS
Q1 2015 Revenue Bridge [$ m]
-$12.5 -$46.8
-$10.9
Organic Currency
Acquisitions &
Divestitures Total
-3.0% -11.0% -2.6% -16.6%
Q1 2015 Revenue for Bruker Corp.
Q1 2015 Non-GAAP Results
 FX reduces revenue by
-$47M;
 Gross profit margin
improvement driven by
prior programs and
higher profitability in
NANO and CALID Groups
 Currency represented a
headwind of -$6M to
operating income
12© Bruker Corporation
COMMENTS[$ m, except EPS] Q1 2015 Q1 2014 Δ
Total Revenues 353.5 423.7 -17%
Gross Profit 167.1 187.2 -11%
Margin (% of revenues) 47.3% 44.2%
SG&A -94.1 -109.1 -14%
(% of revenues) 26.6% 25.7%
R&D -37.2 -46.0 -19%
(% of revenues) 10.5% 10.9%
Operating Income 35.8 32.1 12%
(% of revenues) 10.1% 7.6%
Tax Rate 27.2% 25.5% 170 bps
Net Income* 23.1 18.7 24%
EPS $0.14 $0.11 27%
Shares Outstanding 169.7 169.4 NM
* Attributable to BrukerSum of items may not total due to rounding
Q1 2015 Reconciliation of GAAP and
Non-GAAP Results
[$ m, except EPS] Q1 2015 Q1 2014
GAAP Operating Income 15.2 20.6
Restructuring Costs 3.3 2.4
Acquisition-Related Costs 0.2 1.1
Purchased Intangible Amortization 5.2 5.2
Other Costs 11.9 2.8
TOTAL 20.6 11.5
Non-GAAP Operating Income 35.8 32.1
Non-GAAP Net Interest Income (Expense) & Other -3.5 -5.2*
Non GAAP Profit Before Tax 32.3 26.9
Taxes -8.8 -6.9
Non-GAAP Tax Rate 27.2% 25.5%
Minority Interest -0.4 -1.3
Non-GAAP Net Income** 23.1 18.7
Non-GAAP EPS $0.14 $0.11
13© Bruker Corporation
*Excludes $0.3 million of gains for 2014
** Attributable to BrukerSum of items may not total due to rounding
Q1 2015 Cash Flow Statement
 Seventh straight quarter
of positive free cash flow
for Bruker
 Working capital efficiency
continues to improve,
and capex remains
controlled
14© Bruker Corporation
COMMENTS[$ m] Q1 2015 Q1 2014 Δ
Net Income 6.9 10.0 -3.1
Depreciation & amortization 13.5 15.2 -1.7
Changes in working capital* 30.5 17.0 13.5
Other -23.9 -23.7 -0.2
Operating cash flow 27.0 18.5 8.5
Capital expenditures -5.7 -9.2 3.5
Free cash flow 21.3 9.3 12.0
2015 Outlook
© Bruker Corporation 15
FY 2015 Financial Outlook
Revenues (organic) Approximately +1% y-o-y
Non-GAAP Operating Margin >100 bps y-o-y
Non-GAAP EPS Approximately flat with 2014
16© Bruker Corporation
Bruker FY 2015 Outlook
 Changes in currency
reduce revenues by
10%-11%, with biggest
impact in Q1-Q3
 CAM related revenues
decrease by $50M in
2015
 FX expected to reduce
EPS by ($0.09)
 Capex of approximately
$45M
 Tax rate: 26-28%
 Current currency
assumptions:
Yen/USD: 120
EUR/USD: 1.07
2015 ASSUMPTIONS
Appendix
© Bruker Corporation 17
Q1 2015 GAAP Results
[$ m, except EPS] Q1 2015 Q1 2014 Δ
Total Revenues 353.5 423.7 -17%
Gross Profit 160.2 179.7 -11%
Margin (% of sales) 45.3% 42.4%
SG&A -94.6 -109.5 -14%
(% of revenues) 26.8% 25.8%
R&D -37.2 -46.0 -19%
(% of revenues) 10.5% 10.9%
Operating Income 15.2 20.6 -26%
(% of revenues) 4.3% 4.9%
Net Income* 6.5 8.7 -25%
EPS $0.04 $0.05 -20%
Shares Outstanding 169.7 169.4 NM
18© Bruker Corporation
* Attributable to BrukerSum of items may not total due to rounding
Balance sheet
[$ m] Mar 31, 2015 Dec 31, 2014 Δ
Cash, Cash Equivalents & Short-term
Investments
492.3 497.5 -1%
Financial Debt 354.6 355.0 NM
Net Cash 137.7 142.5 -3%
19© Bruker Corporation
[$ m] Mar 31, 2015 Dec 31, 2014 Δ
Total Assets 1,772.7 1,864.8 -5%
Working Capital* 614.4 694.6 -12%
Intangibles, net & Other Long-Term
Assets
239.2 248.6 -4%
* WC = (Accounts Receivable + Inventory - Accounts Payable)
Q1 SEGMENT RESULTS:
BSI and BEST GAAP Performance
[$ m] Q1 2015 Q1 2014 Δ
REVENUE
Scientific Instruments (BSI) 327.5 393.9 -17%
Organic Revenue Growth (%) -3.6% 6.6%
Energy & Supercon Technologies (BEST) 27.5 34.8 -21%
Organic Revenue Growth (%) -4.1% 7.4%
Corporate Eliminations -1.5 -5.0
Total Revenue 353.5 423.7 -17%
OPERATING INCOME
Scientific Instruments (BSI) 13.7 16.6 -17%
Energy & Supercon Technologies (BEST) 1.0 2.8 -64%
Corporate Eliminations 0.5 1.2
Total Operating Income 15.2 20.6 -26%
20© Bruker Corporation
Sum of items may not total due to rounding

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Q1 2015 earnings slides final

  • 1. Bruker Corporation (NASDAQ: BRKR) Q1 2015 Earnings Presentation Frank Laukien, President & CEO Charles Wagner, EVP & CFO Joshua Young, VP, Investor RelationsMay 6, 2015 Innovation with Integrity
  • 2. 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 based on current expectations, but are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, risks and uncertainties relating to adverse changes in conditions in the global economy and volatility in the capital markets, the integration of businesses we have acquired or may acquire in the future, changing technologies, product development and market acceptance of our products, the cost and pricing of our products, manufacturing, competition, dependence on collaborative partners and key suppliers, capital spending and government funding policies, changes in governmental regulations, realization of anticipated benefits from economic stimulus programs, intellectual property rights, litigation, and exposure to foreign currency fluctuations and other risk factors discussed from time to time in our filings with the Securities and Exchange Commission. These and other factors are identified and described in more detail in our filings with the SEC, including, without limitation, our annual report on Form 10-K for the year ended December 31, 2014. We will also be referencing non-GAAP financial measures in this presentation. A reconciliation of non-GAAP to GAAP results is available in our earnings press release and in this presentation. Bruker Corporation Safe Harbor & Reg. G Statement © Bruker Corporation 2
  • 3. Q1 2015 Business Update © Bruker Corporation 3
  • 4. $0.11 $0.14 Q1-14 Q1-15 Q1-15 Financials Revenues [$ m] Non-GAAP EPS Restructuring & operational initiatives drive higher profit and free cash flow, despite lower revenue -17% +27% © Bruker Corporation 4 424 354 Q1-14 Q1-15 Q1 2015 Performance  Revenues decline $70m, or -17% y-o-y − Changes in foreign exchange lower revenues by $47M, or -11% y-o-y − CAM divestitures result in $12M y-o-y revenue decline  Organic revenue decline of -3.0%, mostly due to lower NMR revenue  Non-GAAP EPS of $0.14, or 27% growth y-o-y − CAM restructuring plus operational and commercial excellence initiatives drive EPS up by +$0.05 y-o-y − Currency reduces EPS by ($0.02) y-o-y − Net effect is +$0.03 non-GAAP EPS increase y-o-y
  • 5. Bruker BIOSPIN Group  Weak NMR order bookings in 2014 drive revenue decline in Q1-15  NMR new order bookings improving in Q1-15  New pricing and commercial practices put in place during Q1-15  Negotiations with workers councils to finalize restructuring plans are expected to be completed in May 2015  Next-gen GHz technology launch reflects commitment to innovation; customer reaction positive; IDPs create new UHF-NMR demand; Bruker CALID Group  Low single-digit organic revenue growth and significant improvement in profitability in Q1-15  CAM Division restructuring successfully completed in Q1-15, one quarter ahead of schedule  Daltonics Division benefits from strong Q1-15 performance of MALDI Biotyper; US-FDA cleared expanded claim 2; April launch of CE- marked Sepsityper solution and high-end MALDI Biotypersmart  Detection Division Q1-15 performance benefits from export licenses; books important Explosives Trace Detection orders for EU airports; 5© Bruker Corporation GROUP OVERVIEW: Q1 2015 Performance
  • 6. Bruker NANO Group  Low single-digit organic revenue growth driven by solid Q1-15 for the AXS Division  Group achieves higher profitability y-o-y due to 2013-2014 restructuring, new products and continued expense controls  AXS Division grows revenue in all product lines  Demand in Asia remains weak, particularly for industrial markets  BNS new BioAFM and Fluorescence Microscopy products doing well BEST Segment  Low single-digit organic revenue decline primarily driven by timing and completion of prior year “Big Science” projects  Solid execution in improving working capital, particularly inventory  Expect improvements in BEST financial performance from Q1-15 levels over the remainder of the year GROUP OVERVIEW: Q1 2015 Performance 6© Bruker Corporation
  • 7. Bruker 2015 Priorities © Bruker Corporation 7 Continue transformation of leadership, management processes, and systems Execute BIOSPIN rightsizing and factory consolidation Accelerate further outsourcing of high- level assemblies in CALID and NANO Drive profitable growth initiative • New high-performance products • New high-value analytical and clinical solutions • Entry into adjacent markets
  • 8. Progress with Profitable Growth Initiative © Bruker Corporation 8 • Next-generation Explosives Trace Detectors (ETD) qualified under new European passenger and cargo requirements; major contract win in Germany; significant opportunity; • Next-generation GHz NMR technology launched for molecular biology and pathogenesis research on Intrinsically Disordered Proteins (IDPs); IDPs play major role in cancer and neurodegenerative diseases; • MALDI Biotyper: China business growing; Clearance of expanded 2nd US FDA claim; April launch of high-end MALDI Biotypersmart system and CE-marked MALDI Sepsityper solution; IDPs by NMR Video: http://www.idpbynmr.eu/home/video.html
  • 9. Q1 2015 Financial Update © Bruker Corporation 9
  • 10. NON-GAAP FINANCIAL PERFORMANCE: Q1 2015 Overview [$ m, except EPS] Q1 2015 Q1 2014 Δ Revenues 353.5 423.7 -17% Operating Income 35.8 32.1 12% Margin (%) 10.1% 7.6% EPS $0.14 $0.11 27% Free Cash Flow 21.3 9.3 12.0M  Non-GAAP operating margins increase y-o-y due to CAM divestitures and operational improvement initiatives  Free cash flow increase driven by improvement in working capital and lower capex spending  Working capital ratios improve as result of improved operations, outsourcing and currency changes 10© Bruker Corporation COMMENTS [$ m] Mar 31, 2015 Mar 31, 2014 Δ Net Cash 137.7 99.2 39% Working capital (WC)* 614.4 799.1 -23% WC-to-revenue ratio 0.35 0.43 -0.08 * WC = (Accounts Receivable + Inventory – Accounts Payable)
  • 11. Q1 2014 Organic Currency Divestitures Q1 2015 $423.7M $353.5M Q1 2015 revenue bridge  Organic revenue decline of -3.0%  Retained CAM products included in organic growth calculation, divested assets excluded  Weaker Euro drove approximately 70% of the $47M decline in revenues from FX rates 11© Bruker Corporation FY 2015 DRIVERS Q1 2015 Revenue Bridge [$ m] -$12.5 -$46.8 -$10.9 Organic Currency Acquisitions & Divestitures Total -3.0% -11.0% -2.6% -16.6% Q1 2015 Revenue for Bruker Corp.
  • 12. Q1 2015 Non-GAAP Results  FX reduces revenue by -$47M;  Gross profit margin improvement driven by prior programs and higher profitability in NANO and CALID Groups  Currency represented a headwind of -$6M to operating income 12© Bruker Corporation COMMENTS[$ m, except EPS] Q1 2015 Q1 2014 Δ Total Revenues 353.5 423.7 -17% Gross Profit 167.1 187.2 -11% Margin (% of revenues) 47.3% 44.2% SG&A -94.1 -109.1 -14% (% of revenues) 26.6% 25.7% R&D -37.2 -46.0 -19% (% of revenues) 10.5% 10.9% Operating Income 35.8 32.1 12% (% of revenues) 10.1% 7.6% Tax Rate 27.2% 25.5% 170 bps Net Income* 23.1 18.7 24% EPS $0.14 $0.11 27% Shares Outstanding 169.7 169.4 NM * Attributable to BrukerSum of items may not total due to rounding
  • 13. Q1 2015 Reconciliation of GAAP and Non-GAAP Results [$ m, except EPS] Q1 2015 Q1 2014 GAAP Operating Income 15.2 20.6 Restructuring Costs 3.3 2.4 Acquisition-Related Costs 0.2 1.1 Purchased Intangible Amortization 5.2 5.2 Other Costs 11.9 2.8 TOTAL 20.6 11.5 Non-GAAP Operating Income 35.8 32.1 Non-GAAP Net Interest Income (Expense) & Other -3.5 -5.2* Non GAAP Profit Before Tax 32.3 26.9 Taxes -8.8 -6.9 Non-GAAP Tax Rate 27.2% 25.5% Minority Interest -0.4 -1.3 Non-GAAP Net Income** 23.1 18.7 Non-GAAP EPS $0.14 $0.11 13© Bruker Corporation *Excludes $0.3 million of gains for 2014 ** Attributable to BrukerSum of items may not total due to rounding
  • 14. Q1 2015 Cash Flow Statement  Seventh straight quarter of positive free cash flow for Bruker  Working capital efficiency continues to improve, and capex remains controlled 14© Bruker Corporation COMMENTS[$ m] Q1 2015 Q1 2014 Δ Net Income 6.9 10.0 -3.1 Depreciation & amortization 13.5 15.2 -1.7 Changes in working capital* 30.5 17.0 13.5 Other -23.9 -23.7 -0.2 Operating cash flow 27.0 18.5 8.5 Capital expenditures -5.7 -9.2 3.5 Free cash flow 21.3 9.3 12.0
  • 15. 2015 Outlook © Bruker Corporation 15
  • 16. FY 2015 Financial Outlook Revenues (organic) Approximately +1% y-o-y Non-GAAP Operating Margin >100 bps y-o-y Non-GAAP EPS Approximately flat with 2014 16© Bruker Corporation Bruker FY 2015 Outlook  Changes in currency reduce revenues by 10%-11%, with biggest impact in Q1-Q3  CAM related revenues decrease by $50M in 2015  FX expected to reduce EPS by ($0.09)  Capex of approximately $45M  Tax rate: 26-28%  Current currency assumptions: Yen/USD: 120 EUR/USD: 1.07 2015 ASSUMPTIONS
  • 18. Q1 2015 GAAP Results [$ m, except EPS] Q1 2015 Q1 2014 Δ Total Revenues 353.5 423.7 -17% Gross Profit 160.2 179.7 -11% Margin (% of sales) 45.3% 42.4% SG&A -94.6 -109.5 -14% (% of revenues) 26.8% 25.8% R&D -37.2 -46.0 -19% (% of revenues) 10.5% 10.9% Operating Income 15.2 20.6 -26% (% of revenues) 4.3% 4.9% Net Income* 6.5 8.7 -25% EPS $0.04 $0.05 -20% Shares Outstanding 169.7 169.4 NM 18© Bruker Corporation * Attributable to BrukerSum of items may not total due to rounding
  • 19. Balance sheet [$ m] Mar 31, 2015 Dec 31, 2014 Δ Cash, Cash Equivalents & Short-term Investments 492.3 497.5 -1% Financial Debt 354.6 355.0 NM Net Cash 137.7 142.5 -3% 19© Bruker Corporation [$ m] Mar 31, 2015 Dec 31, 2014 Δ Total Assets 1,772.7 1,864.8 -5% Working Capital* 614.4 694.6 -12% Intangibles, net & Other Long-Term Assets 239.2 248.6 -4% * WC = (Accounts Receivable + Inventory - Accounts Payable)
  • 20. Q1 SEGMENT RESULTS: BSI and BEST GAAP Performance [$ m] Q1 2015 Q1 2014 Δ REVENUE Scientific Instruments (BSI) 327.5 393.9 -17% Organic Revenue Growth (%) -3.6% 6.6% Energy & Supercon Technologies (BEST) 27.5 34.8 -21% Organic Revenue Growth (%) -4.1% 7.4% Corporate Eliminations -1.5 -5.0 Total Revenue 353.5 423.7 -17% OPERATING INCOME Scientific Instruments (BSI) 13.7 16.6 -17% Energy & Supercon Technologies (BEST) 1.0 2.8 -64% Corporate Eliminations 0.5 1.2 Total Operating Income 15.2 20.6 -26% 20© Bruker Corporation Sum of items may not total due to rounding