Bruker drives profitable growth by enabling breakthrough discoveries & development of new applications that improve the quality of human life

Transcription

1 Bruker drives profitable growth by enabling breakthrough discoveries & development of new applications that improve the quality of human life 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 as that term is defined in the Private Securities Litigation Reform Act of 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 reports on Form 10-K for the years ended December 31, 2014 and 2015, 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. 2

3 Key Messages in Bruker is a differentiated leader in attractive life science and diagnostics tools markets, and our brand stands for innovation 2 We focus on profitable growth in four strategic growth areas 3 We will drive margin expansion and cash flow as we transition from Transformation to our next phase of Operational Excellence 3

4 Agenda 1. Company Overview 2. Profitable Growth Strategy 3. From Transformation to Operational Excellence 4. Financial Overview 4

5 Bruker s high-performance scientific instruments and high-value analytical and diagnostic solutions enable our customers to explore life and materials at Microscopic and Nano-Scales Small Molecule and Protein Levels Cellular and Sub-Cellular Levels 5

6 Bruker overview: Percentage of revenue: FY2015 revenue ~$1.62 billion 9%-10% R&D investment ~75% of revenues from scientific and diagnostic instrumentation Europe 41% ~6,000 employees worldwide Going from Transformation to Operational Excellence phase Stable and profitable growth oriented ownership: - Founded more than 55 years ago - RoIC & shareholder value focus - ~35% of company owned by insiders Americas 29% 4% Rest of World 26% Asia Pacific 6

7 Bruker is organized in three key Groups: Bruker BioSpin Group - NMR/EPR for Research & Pharma - Applied, Industrial & Clinical MR - Preclinical Imaging - Services & Life-Cycle Support Bruker CALID Group - Mass Spectrometry for Proteomics & Metabolomics Applied & Pharma Clinical Microbiology, IVD - FTIR/Raman for Applied Markets - CBRNE Detection for Security Bruker NANO Group - Atomic Force Microscopy - Fluorescence Microscopy for Cell Biology & Neurosciences - X-Ray for Materials Research, QC - Next-Gen Semicon Metrology ~$547m in Revenue ~$493m in Revenue ~$460m in Revenue 7

8 Bruker serves large markets & a global customer base Key Markets Largest Customer Segments Pre-Clinical Imaging 7% Diagnostics 7% Other 10% Nuclear Magnetic Resonance 25% Academic & Government Industrial Optical Spectroscopy 10% Atomic Force Microscopy 10% X-Ray 13% Mass Spectrometry 18% Pharma/Biopharmaceutical Diagnostic Labs/Hospitals Applied Markets 8

9 Bruker has leading market positions for more than 60% of our product portfolio #1 or #2 market position for: NMR/EPR & Metabolomics Preclinical Imaging & MALDI Imaging MALDI ID in Microbiology Atomic Force Microscopy FT-IR/NIR X-Ray Diffraction X-ray Metrology 9

10 Agenda 1. Company Overview 2. Profitable Growth Strategy 3. From Transformation to Operational Excellence 4. Financial Overview 10

11 We are investing in four strategic areas that have attractive growth and defensible, high-margin opportunities Life Science Molecular Research Nano-Analysis, Microscopy & Materials Research Applied Markets & Pharma Clinical Research, Microbiology & Diagnostics 11

12 Life Science Molecular Research EXAMPLE: Intrinsically Disordered Proteins (IDPs) IDPs turn out to be prevalent in nature, and play many key roles in molecular and cell biology, but are difficult to analyze ( IDPs are abundant in cancer, neurodegenerative diseases, CVD/diabetes, viral diseases and their pathogenic functions are not yet well understood Ultra-high field NMR is the key technology to study the biological function of IDPs, and may be key to unravelling Alzheimer, Parkinson, etc. pathogenesis 12

13 ENC 2016 ANNOUNCEMENT: World's first shielded Aeon 1 GHz System installed Aeon 1 GHz at Research Center for Bio-Macromolecules at University of Bayreuth GHz magnet technology, new NMR probes and methods enable novel studies of IDPs, larger protein structures and of complete membrane proteins Active shielding reduces space requirements by > one order of magnitude Aeon 1 GHz magnets leverage advanced BEST superconductors Active refrigeration eliminates liquid nitrogen, reduces liquid helium boil-off essentially to zero Innovation with Integrity 13

14 Applied Markets & Pharma EXAMPLE: Food/Beverage Safety & Authenticity Bruker NMR, MS and IR/NIR instruments are critical to ensuring the quality, authenticity and safety of a variety of foods we eat and products we use For example, high-value honey and high-end wines are subject to mislabeling and adulteration NMR HoneyScreener and NMR WineScreener can quantify very many ingredients in short, single measurements, thereby ensuring purity and origin 14

15 Nano-Analysis, Microscopy & Materials Research EXAMPLE: Next-Gen Semiconductor Metrology Mobility, cloud computing and big data demand ever smaller and more powerful computer chips Chip & memory makers require next-gen nanometrology to ensure product yield and quality Bruker next-gen AFM and X-ray metrology tools are essential for development and production at advanced nodes and for new 3D chip structures 15

16 Clinical Research, Microbiology & Diagnostics EXAMPLE: MALDI Biotyper & TissueTyper: Bruker has pioneered the MALDI Biotyper to ID bacteria and yeasts more quickly and accurately Time-to-Result and expansive ID libraries are of great clinical and economic value in microbiology Bruker has launched the MALDI TissueTyper for clinical research in anatomical pathology & oncology 16

17 Agenda 1. Company Overview 2. Profitable Growth Strategy 3. From Transformation to Operational Excellence 4. Financial Overview 17

18 During our 3-year Transformation we made key changes to our organization, systems & commercial capabilities Organization & Systems -Reorganized; new leaders -Clear performance metrics & incentives -Integrated management processes -Improving financial & ERP systems Commercial -Applications-based marketing -Reorganization of sales forces -New CRM & sales management -Improved pricing practices 18

19 After 3 years of Transformation and Restructuring, Bruker will now focus on Operational Excellence & Lean Bruker BioSpin Bruker NANO Bruker CALID BEST Outsourcing Rightsizing Outsourcing Rightsizing & Footprint Consolidation Outsourcing CAM Divestitures Footprint Consolidation Rightsizing & Footprint Consolidation Bruker s next Phase: Operational Excellence Lean manufacturing Continued outsourcing Lean enterprise Better business systems Commercial excellence 19

20 Agenda 1. Company Overview 2. Profitable Growth Strategy 3. From Transformation to Operational Excellence 4. Financial Overview 20

21 We delivered solid improvements in our profitability and free cash flow in FY Non-GAAP Gross Margin Non-GAAP Operating Margin Non-GAAP EPS Free Cash Flow 44.7% 46.2% 10.2% 13.3% $0.75 $0.89 $195M $80M +150 bps +310 bps +19% +$115M FY-14 FY-15 21

22 ... and our momentum continued in Q1-16 with good organic revenue growth and margin expansion Q Performance Revenue growth of $22M, or +6.2% y-o-y FX headwinds lower revenue -0.9% y-o-y Jordan Valley acquisition adds +1.5% y-o-y Organic revenue growth of +5.6% y-o-y North America and China strongest performing regions Non-GAAP operating margin expands by +250 basis points y-o-y to 12.6% GAAP EPS grows to $0.14, from $0.04 in Q1-15 Q1 Financials Revenues [$ m] Non-GAAP EPS Q1-15 Q1-16 Q1-15 $ % +50% Non-GAAP EPS grows by +50% y-o-y Q1-16 $

23 Q Non-GAAP Results [$ m, except EPS] Q Q Δ Total Revenues % Gross Profit % Margin (% of revenues) 46.7% 47.3% SG&A % (% of revenues) 24.5% 26.6% COMMENTS Gross margin: increase in BioSpin volume, mix, price, and restructuring effects; offset by lower NANO volume and unfavorable mix in CALID R&D % (% of revenues) 9.6% 10.5% Operating Income % (% of revenues) 12.6% 10.1% Tax Rate 17.7% 27.2% -950 bps Net Income* % EPS $0.21 $ % Continuing focus on operating expense leverage Audit settlement and jurisdictional mix in Q1 lower tax rate Share buyback program commenced in November 2015 results in lower share count Shares Outstanding % Sum of items may not total due to rounding * Attributable to Bruker 23

24 FY-2016 Guidance - Unchanged FY-2016 Guidance Organic Revenue Growth Approximately +3% 2016 ASSUMPTIONS FY 2016 tax rate: 25%-28% Non-GAAP Operating Margin Expansion y-o-y Approximately +100 bps Fully diluted share count: 163M-165M shares Capex: ~$50M Non-GAAP EPS $ $1.02 Current currency assumptions: Yen/USD:113 USD/EUR: 1.14 CHF/USD:

25 Key Messages in Bruker is a differentiated leader in attractive life science and diagnostics tools markets, and our brand stands for innovation 2 We focus on profitable growth in four strategic growth areas 3 We will drive margin expansion and cash flow as we transition from Transformation to our next phase of Operational Excellence 25

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