Q1 2015 earnings slides final

Bruker Corporation (NASDAQ: BRKR)

Q1 2015 Earnings Presentation

Frank Laukien, President & CEO

Charles Wagner, EVP & CFO

Joshua Young, VP, Investor Relations May 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


$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%


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


Bruker 2015 Priorities


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


• 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


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


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


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


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 Bruker Sum 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


*Excludes $0.3 million of gains for 2014 ** Attributable to Bruker

Sum 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


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


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


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


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


* Attributable to Bruker Sum 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%


[$ 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%


Sum of items may not total due to rounding