Innovation with Integrity. Bruker Corporation

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1 Bruker drives profitable growth and margin expansion by enabling scientific discoveries and by delivering highperformance analytical, life science and diagnostic solutions Bruker Corporation Innovation with Integrity

2 Bruker Corporation Safe Harbor Statement Any statements contained in this presentation that do not describe historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Forward-looking statements are based on current expectations, forecasts and assumptions of our management and are subject to risks and uncertainties that could cause actual results to differ materially from those indicated, 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; fluctuations in foreign currency exchange rates; implementation of strategies for improving our operating margins, profitability and cash flow; changing technologies; product development and market acceptance of our products; the cost and pricing of our products; competition; dependence on collaborative partners, key suppliers and contract manufacturers; capital spending and government funding policies; changes in governmental regulations; the use and protection of intellectual property rights and other risk factors discussed from time to time in our filings with the Securities and Exchange Commission, or SEC. These and other factors are identified and described in more detail in our most recent reports filed with the SEC, including, without limitation, our annual report on Form 10-K for the year ended December 31, 2016, our most recent quarterly reports on Form 10-Q and our current reports on Form 8-K. We expressly disclaim any intent or obligation to update these forward-looking statements other than as required by law. Bruker Corporation 2

3 2017 Key Messages & Financial Objectives 1. Bruker is a differentiated leader in attractive markets for analytical, life science and diagnostic tools, and our brand stands for innovation: Market leader in unique, high value technologies: NMR, MALDI-TOF, MALDI BioTyper, FTMS, AFM, XRD & Superconductors Major growth opportunities: Phenomics, Proteomics, Biopharma, Food Analysis, Microbiology, Neuroscience, Structural Biology/IDPs, Next-Gen Semiconductor Metrology 2. We expect to accelerate revenue growth: Resume revenue growth in 2017 via a combination of organic growth and M&A contributions Accelerate towards LST & DX market growth rates in 2018 & beyond 3. We will continue to leverage our transformation to drive margin expansion: : delivered 460 bps of 2-yr cumulative Non-GAAP operating margin expansion In 2017, we are targeting an additional bps of Non-GAAP operating margin expansion (incl. a -40 bps headwind from acquisitions) Long-term goal to expand operating margin bps on average per year over a multi-year timeframe 4. We aim for high ROIC by investing internally in high-value innovation and our entry into new markets, complemented by disciplined M&A. Bruker Corporation 3

4 Bruker Overview Founded in 1960 FY2016 revenue: ~$1.6 billion R&D investment: ~9% of revenue ~75% of revenue from scientific and diagnostic instruments ~6,000 employees worldwide After major restructuring and Transformation now on to Operational Excellence phase Long-term oriented ownership: ~35% owned by insiders Quarterly dividend: ~$0.04/share Non-GAAP ROIC: >20% in both FY16 and FY15 Three Primary Life-Science Tools Groups with Global Footprint Revenue breakdown (FY 2016): BEST Americas 8% NANO Europe 30% BioSpin 35% 28% 36% 5% 29% 29% CALID APAC Service & After-market 25% Systems 75% Large, diverse end markets: Academic & Government Pharma/Biopharma Diagnostic Labs & Hospitals Applied Markets Rest of World Industrial & Next-Gen Semicon Metrology Bruker Corporation 4

5 Bruker Technology Portfolio & Key Markets Differentiated, high-performance scientific instruments, analytical tools and diagnostic solutions Preclinical Imaging Nuclear Magnetic Resonance (NMR) Enabling research and analysis of life and materials at: Microbiology Mass Spectrometry Microscopic & Nano-Scales Small Molecule & Protein Levels FT-IR/NIR/Raman Spectroscopy Atomic Force Microscopy (AFM) X-Ray Analysis Cellular & Sub-Cellular Levels plus other Life-Science Tools (LST) Bruker Corporation 5

6 Bruker Scientific Instruments (BSI) Segment Three Life Science Tools & Diagnostics (LST & DX) Groups: BioSpin Group ~$563M FY2016 revenue NMR/EPR for Life-Science Research & Pharma Applied, Industrial & Clinical MR Preclinical Imaging Services & Life-Cycle Support CALID Group ~$475M FY2016 revenue Mass Spectrometry for Proteomics & Metabolomics Applied & Pharma Microbiology & Pathology FT-IR/NIR/Raman for Applied Markets CBRNE Detection for Security Service, Consumables & Software NANO Group ~$455M FY 2016 revenue Atomic Force Microscopy Fluorescence Microscopy for Cell Biology & Neurosciences X-Ray for Materials Research, QC Next-Gen Semicon Metrology Service & After-Market business BRUKER HAS #1 OR #2 MARKET POSITION FOR MORE THAN 60% OF OUR PRODUCT PORTFOLIO NMR/EPR & NMR Phenomics Preclinical Imaging & MALDI Imaging MALDI BioTyper Atomic Force Microscopy FT-IR/NIR, X-Ray Diffraction (XRD), Next-Gen Semicon Metrology Bruker Corporation 6

7 Bruker Energy & Supercon Technologies (BEST) Segment In Nov. 2016, BEST acquired OST for $17.5M Becoming a Global Leader in Superconductors Standalone BEST in 2016 (1) : ~$124M in revenue Supplier of superconductors and physics technologies for MedTech: OEM MRI magnets Life Science Tools: NMR, FTMS, Preclinical MRI Big Science: CERN, ITER, National Labs Differentiated, high-field YBCO 2 nd -gen HTS technology European manufacturing, access to European markets Standalone OST in 2016E (2) : ~$50M in revenue Supplier of superconductors for MRI magnets, CERN, DOE Unique Rod Restack Process (RRP) conductor portfolio US manufacturing & supply chain Good access to US and Chinese markets Faced operational and market challenges in 2016 BEST, including OST, in 2017 and beyond: A global leader in superconducting materials Capacity & flexibility to serve OEM MRI and Science customers better Drive productivity, economies of scale and margin improvements Secures critical superconductor supply for Bruker BioSpin (1) BEST revenue for FY 2016 excluding OST contributions between Nov. 17, 2016 and Dec. 31, (2) Pro forma standalone OST revenue for FY2016. Bruker Corporation 7

8 Bruker From Transformation to Operational Excellence: Bruker BioSpin Bruker NANO Bruker CALID BEST Outsourcing Rightsizing Outsourcing Rightsizing & Footprint Consolidation Outsourcing CAM Divestitures Footprint Consolidation Rightsizing & Footprint Consolidation Operational Excellence Lean manufacturing Continued outsourcing Better business processes Commercial excellence ERP & CRM enhancements Bruker Corporation 8

9 Bruker Financial Overview Despite end market and FX headwinds, Bruker is delivering strong margin expansion and EPS growth Reported Revenue In $m (1.7%) (10.2%) (0.8%) Non-GAAP EPS Double-digit Non-GAAP EPS CAGR over 2 years $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 $0.75 $0.89 $ % (2.0%) (4.0%) (6.0%) (8.0%) (10.0%) (12.0%) Non-GAAP Operating Margin ~460 bps of Non-GAAP Operating Margin expansion over 2 years % 15.0% 13.3% % 5.0% 0.0% Free Cash Flow In $m $200 $150 $100 $50 $0 10.2% $81 $195 $ ** Non-GAAP operating margin, non-gaap EPS and Free Cash Flow are non-gaap measures. Reconciliations to the most directly comparable GAAP measures are available on Bruker s website at Bruker Corporation 9

10 Bruker FY 2016 financials Continued strong margin expansion and profitability improvements Non-GAAP Gross Margin Non-GAAP Operating Margin Non-GAAP EBITDA Non-GAAP EPS 46.2% 48.1% 13.3% 14.8% $258M $290M $1.19 $ bps +150 bps +$32M +34% FY 2015 FY 2016 * Non-GAAP gross margin, non-gaap operating margin, non-gaap EBITDA and non-gaap EPS are non-gaap measures. Reconciliations of these measures to the most directly comparable GAAP measures are available on Bruker s website at Bruker Corporation 10

11 Working Capital Efficiency & Disciplined Capital Allocation $1, SHARE BUYBACK PROGRAM $1,200 $1,000 $800 $600 $400 $200 $ $832m 0.37 $ Working Capital Working Capital to Revenue Ratio BRKR share repurchase of $225M authorized in November 2015 was completed in December 2016 QUARTERLY DIVIDEND Bruker pays a quarterly dividend of $0.04 per share COMPLEMENTARY M&A In 2016 and early 2017, closed acquisitions for ~$71M Projected revenue from these acquisitions in 2020: $90-115M Bruker Corporation 11

12 FY 2017 Guidance: Return to organic revenue growth, continue operating margin expansion (1) FY 2017 Guidance Revenue Growth y-o-y +1.5% to +2.5% 2017 ASSUMPTIONS Organic revenue growth: +1% to +2% Acquisition revenue growth: +3.5% to +4% Non-GAAP Operating Margin Expansion y-o-y (2)(3) +40 bps to +70 bps FX revenue headwind: -3% to -3.5% Non-GAAP tax rate: ~25% Non-GAAP EPS $ $1.09 (1) As issued during the company s 4Q-16 conference call on February 13, (2) From a FY16 non-gaap operating margin of 14.8%. (3) Includes approximately -40 bps cumulative negative effect from 2016 and January 2017 acquisitions. Excluding acquisitions, Bruker underlying non-gaap operating margin expected to expand by +80 bps to +110 bps in FY Fully diluted share count: ~161M shares Capex: ~$45M Average Jan rates: USD = Yen EUR = 1.06 USD USD = 1.01 CHF Bruker Corporation 12

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