1 © Bruker Corporation
Bruker drives profitable growth by enabling breakthrough discoveries & development of new
applications that improve the quality of human life.
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
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, 2013, 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 © Bruker Corporation
1. Company Overview
2. Innovation & Transformation
3. Operational Initiatives & Financials
Agenda
4 © Bruker Corporation
Bruker’s high-value scientific instruments enable scientists to explore life and materials at …
Microscopic and Nano-Scales
Cellular and Sub-Cellular Levels
Small Molecule and Protein Molecular Levels
5 © Bruker Corporation
Bruker fast facts: • FY2014 revenues of ~$1.8 billion
• ~10% R&D investment
• Global company with 83% of
revenues from outside U.S.
• ~90% of revenues derived from scientific instrumentation
• ~6,000 employees worldwide • Stable and long-term oriented
ownership: - 34% of company owned by insiders - Founded more than 50 years ago
42%
32%
8%
18% United States
Europe
Rest of World
Asia Pacific
Percentage of revenue:
Our products and expertise help to drive advances in life science research, pharma, applied markets, nanotechnology, cell biology,
clinical research, microbiology and IVD.
6 © Bruker Corporation
7 © Bruker Corporation
We are organized around three key Groups:
Bruker BioSpin Group - NMR & EPR for Life-Science
Research and Pharma - Applied, Industrial & Clinical MR
for Food Safety & Authenticity, Pharma QC, Clinical Metabolomics - Preclinical Imaging for Biology &
Translational Research
Bruker Nano Group - AFM & Nanoanalysis
- Fluorescence Microscopy for Cell Biology & Neurosciences
- X-Ray for Materials Research & Crystallography
- Next-Gen Semicon Metrology - Industrial Analysis & QC
Bruker CALID Group - Mass Spectrometry for
• Proteomics & Metabolomics • Applied & Pharma • Clinical Microbiology • -Clinical Research and IVD
- FTIR/Raman for Applied Markets - CBRNE Detection
~$500m in Revenue ~$625M in Revenue ~$550m in Revenue
NMR/EPR &
Metabolomics
Preclinical Imaging &
MALDI Imaging
MALDI ID in Microbiology
(1,500 units)
Atomic Force Microscopy
FT-IR/FT-MIR
XRD/SCD
#1 or #2 market position for:
8 © Bruker Corporation
…which has created leading market positions for
much of our product portfolio
9 © Bruker Corporation
1. Company Overview
2. Innovation & Transformation
3. Operational Initiatives & Financials
Agenda
10 © Bruker Corporation
Further Evolution of Bruker Strategy: Innovate, expand core business, and invest for
profitable growth in 4 key areas
• 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 Disordered Proteins (IDP)
11 © Bruker Corporation
1. Life Science Molecular Research
• 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/Elucidation
• Biologic drug characterization
• Drug/metabolite tissue localization
• Pharma formulation, Process Analytical Technologies (PAT)
12 © Bruker Corporation
2. Applied & Pharma
New Applied Market for Bruker: Forensic Toxicology Novel Toxtyper™ Solution for Forensic Screening
For Research Use Only
• 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 (83) + metabolites (> 4,000)
• Open toxicology library keeps pace with emerging new designer drugs
• Handled by non-MS experts (Open Access)
• Potential expansion into clinical toxicology in 2016
Simplicity, Speed and Confidence – First Time, Every Time!
14
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 January 2015
1 ECAC-European Civil Aviation Conference
New Benchtop DE-tector™
New Handheld Roadrunner™
ETD Market Segment: Cargo Inspection
• Certifications TSA2, ECAC, CAAC3 planned in 2016
• Opportunity in US cargo market for 100% screening
² TSA - Transport Security Agency (US) 3 CAAC - Civil Aviation Administration of China
• 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 Industrial Applications
15 © Bruker Corporation
3. Nano-Analysis, Micro- scopy, Advanced Materials
Bruker’s New Fluorescence Microscopy (FM) Business:
Fast, Deep & Super-Resolution Cellular/Neural Imaging
• High-speed confocal FM for real-
time, live imaging for extended
times to assess cell function
• High-speed visualization, with
lowest photo-toxicity confocal FM
16 Bruker Confidential
Opterra™ imaging live mitochondria Ultima™ imaging zebra fish retina Vutara™ imaging neurons at 25nm
• Image deep into the brain to map neural networks with multi-photon FM
•Simultaneous measurement and in-vivo stimulation
• Image nano-structures in living cells at the molecular level
•Only super-resolution FM with speed to enable live cell imaging
Bruker’s novel, performance-leading FM systems serve $200m+ p.a. addressable market.
• 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 on novel molecular
diagnostics & anatomical pathology
17 © Bruker Corporation
4. Clinical Research & Molecular Diagnostics
18 © Bruker Corporation
We are continuing to execute a multi-year
transformation to improve operational performance
2013 2014 2015 2016
Bruker
BioSpin
Bruker
Nano
Bruker
CALID
BEST
Outsourcing
Rightsizing
CAM Divestitures
Rightsizing
Rightsizing
BAXS, BELE, BNA Outsourcing
Footprint Consolidation
BDAL, BOPT, BDET Outsourcing
FP Consolidation
FP Consolidation
FP Consolidation
BNS Outsourcing
19 © Bruker Corporation
1. Company Overview
2. Innovation & Transformation
3. Operational Initiatives & Financials
Agenda
20 © Bruker Corporation
We are making important changes to our
organization, systems & commercial capabilities
Commercial Organization & Systems
-Reorganized; new leaders -Clear performance metrics & incentives
-Improved management processes -Improving financial & ERP systems
-Applications-based marketing -Reorganization of sales forces
-New CRM & sales management -Improved pricing practices
21 © Bruker Corporation
We are also executing initiatives to reduce
costs and improve efficiency
Portfolio Outsourcing/
Facilities Procurement IT Systems Resource Allocation
• Divested/shut down unprofitable product lines
• Bolt-on acquisitions: preclincial imaging & cell biology
• Exited small plants and streamlined production
• Outsource non-core manufacturing activities
• Professionally manage spending to take advantage of scale
• New financial consolidation system
• Multi-year ERP improvement program underway
• Operating spending well-managed
• Reinvestment in important capabilities and functions
22 © Bruker Corporation
Despite considerable progress, we have faced
challenges that have offset our achievements
Successes
• Management changes • Outsourcing initiatives • CAM divestitures • Lower operating expenses • Improved BEST profitability • Free Cash Flow improvement
Headwinds
• Currency: weakening Yen • CAM operating losses • Prolonged downturn in
semiconductor & data storage • NMR slowdown • Consistency of performance
Financial performance has been stable, with
improvements offset by headwinds
1,791
1,839 1,825*
2012 2013 2014E
Revenue [$m] Non-GAAP EPS
$0.83 $0.77 $0.75*
2012 2013 2014E
*Represents mid-point of company guidance provided on November 6, 2014
24 © Bruker Corporation
Improving free cash flow has strengthened
our balance sheet
* as of 9/30/2014
Free Cash Flow as % of revenue Net (Debt)/Cash
* As of September 30, 2014
3.4%
5.1%
7.6%
2012 2013 2014–TTM*
($27M)
$84M $87M
2012 2013 2014–YTD*
• 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 value
25 © Bruker Corporation
The Bruker Investment
Opportunity
26 © Bruker Corporation
www.bruker.com
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