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Bruker Corporation (NASDAQ: BRKR) Q4 2017 Earnings Presentation Frank Laukien, President & CEO Anthony Mattacchione, SVP & CFO Miroslava Minkova, Head of Investor Relations February 8, 2018 Innovation with Integrity

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Page 1: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Bruker Corporation (NASDAQ: BRKR)

Q4 2017 Earnings Presentation

Frank Laukien, President & CEO

Anthony Mattacchione, SVP & CFO

Miroslava Minkova, Head of Investor Relations February 8, 2018

Innovation with Integrity

Page 2: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

BRUKER CORPORATION

Safe Harbor & Reg. G 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 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 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, our ability to successfully implement restructuring

initiatives, changing technologies, product development and market acceptance of our products, the cost

and pricing of our products, manufacturing, 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, litigation, 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 filings with the SEC, including,

without limitation, our annual report on Form 10-K for the year ended December 31, 2016 and

subsequently filed Quarterly reports on Form 10-Q. We expressly disclaim any intent or obligation to

update these forward-looking statements other than as required by law. 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.

2

Page 3: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Business Update

Q4 2017 & FY 2017

3

Page 4: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Q4 2017 Performance

Revenues increase +$60M, or +12.8%, y-o-y

−Organic revenue +4.0% y-o-y, including +3.4% in

Scientific Instruments, and +11.6% in BEST segment

−Acquisitions add +3.6% y-o-y

−FX translation adds +5.2% y-o-y

Non-GAAP gross margin increases +120 bps y-o-y

Non-GAAP operating margin increases +130 bps y-o-y

Non-GAAP operating profit grows +20.4% y-o-y

GAAP net loss per share of $0.02, including US tax

reform effects, compared to EPS of $0.43 in Q4-16

Non-GAAP EPS of $0.51, an increase of 11%

compared to $0.46 in Q4-16

Q4 Financials

4

Revenues [$M]

470.3 530.5

Q4-16 Q4-17

Non-GAAP EPS

Q4 2017: Solid revenue growth, margin expansion

and Non-GAAP EPS growth

+12.8%

+11%

$0.46

$0.51

Q4-16

Q4-17

Page 5: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

FY 2017 Performance

Revenue increase of +$155M, or +9.6%, y-o-y

−Organic revenue +3.6% y-o-y, including +2.7% in

Scientific Instruments, and +14.5% in BEST

−Acquisitions add +4.8% y-o-y

−FX translation adds +1.2% y-o-y

Non-GAAP gross margin consistent with FY 2016

Non-GAAP operating margin expands +80 bps y-o-y

Non-GAAP operating profit grows +16% y-o-y

GAAP EPS $0.49, compared to $0.95 in FY 2016

Non-GAAP EPS $1.21, compared to $1.19 in FY 2016

− Non-GAAP eff. tax rate 25.0% vs. 15.7% in FY 2016

FY 2017 ROIC of ~26.6%

FY Financials

5

Revenues [$M]

1,611 1,766

FY 2016 FY 2017

Non-GAAP EPS

FY 2017: Return to organic revenue growth and

continued operating margin expansion;

low FY 2016 tax rate limits non-GAAP EPS growth

+9.6%

+2%

$1.19

$1.21

FY 2016

FY 2017

Page 6: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Bruker BIOSPIN Group: FY 2017 Revenue $572M

BIOSPIN revenue modestly above prior year in constant currency;

operating margins lower, primarily due to less favorable mix

NMR revenue on par with FY 2016, with continued strong after-market

revenue growth with LabScapeTM and despite 1GHz revenue in 2016

PCI up slightly with good execution and PCI market recovery

CALID mid-single digit constant currency revenue growth, including

acquisitions (primarily InVivo); operating margins improve on higher

volume and 2016 restructuring

Daltonics revenue grows with European academic recovery and

strength in after-market services & consumables

Optics revenue grows; improved industrial, applied, academic demand

Detection revenue down due to large contracts in 2016

GROUP OVERVIEW:

FY 2017 Operating Performance

6

Bruker CALID Group: FY 2017 Revenue $499M

Page 7: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Bruker NANO Group: FY 2017 Revenue $513M

NANO low teens constant currency revenue growth, due to academic and

industrial recovery, growth in semiconductor metrology and acquisitions

AXS revenue up with European recovery, industrial and China demand

Semicon metrology revenue substantially higher with both technology

buys and market strength

Nano Surfaces revenue higher due to Hysitron acquisition

BEST Segment: FY 2017 Revenue $182M(1)

BEST revenue substantially higher, driven by both B-OST acquisition

(November 2016) and mid-teens organic growth

Demand for MRI superconductors and ‘Big Science’ projects drove BEST

results in FY 2017, including some project accelerations into 2017

B-OST results ahead of M&A targets; productivity investments on-going

GROUP OVERVIEW:

FY 2017 Operating Performance

7

(1) Net of intercompany eliminations. BEST Segment FY 2017 revenue prior to intercompany eliminations is $191M.

Page 8: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Innovation with Integrity

MULTI-YEAR PORTFOLIO TRANSFORMATION:

On track in 2017, with significant investments;

Further acceleration expected in 2018-2020

8

• Proteomics & Phenomics

• Biopharma & Applied

• Microbiology & Diagnostics

• Neuroscience & Cell Microscopy

• Next-gen Nanotechnology

• After-Market: Services,

Software and Consumables (1)

2017 results:

~25% of

revenue

grew above

LST market

GMs & OMs

above Bruker

average

2017 results:

~15% of

revenue

lower GMs,

higher OMs

than Bruker

average

(1) Services, software and consumables, excluding Microbiology after-market & consumables.

Six Key High-Growth & High-Margin

Initiatives:

Page 9: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

2018 Key Priorities

Position company for further organic Revenue

Growth Acceleration: drive six key high-growth

initiatives

Transform Portfolio by investing in six key high-

growth, high-margin initiatives

Sustain Margin Expansion with continued

Operational & Commercial Excellence initiative

Continue to Strengthen Systems by harmonizing

processes, ERP and CRM platforms

Disciplined Capital Allocation for sustained

shareholder returns

9

Page 10: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Financial Update

Q4 2017 & FY 2017

10

Page 11: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

NON-GAAP FINANCIAL PERFORMANCE:

Q4 2017 Overview

[$ m, except EPS] Q4-2017 Q4-2016 Δ

Revenues 530.5 470.3 +12.8%

Operating Profit 110.8 92.0 +20%

Margin (%) 20.9% 19.6% +130 bps

Non-GAAP EPS $0.51 $0.46 +11%

Free Cash Flow 91.3 79.7 +11.6M

[$ m] Dec 31, 2017 Dec 31, 2016 Δ

Net (Debt)/ Cash 23.6 88.6 -73%

Working capital (WC)* 714.7 598.2 +19%

WC-to-revenue ratio $0.40 $0.37 +8%

11

COMMENTS

Reported revenue +12.8%,

organic growth +4.0%

Operating profit up +20%

Operating margin +130 bps:

higher volume and operating

leverage, partially offset by

dilution from acquisitions and

FX

Free cash flow $91.3M, an

increase of 14.5% y-o-y

Use of cash for buybacks,

dividends and M&A results in

lower net cash position y-o-y

Working capital up +19%,

due to revenue growth,

acquisitions and FX

* WC = (Accounts Receivable + Inventory - Accounts Payable)

Page 12: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Q4 2016 Organic Currency Portfolio Q4 2017

$470.3M $530.5M

Q4 2017 Revenue Bridge

Organic Currency Portfolio Total

+4.0% +5.2% +3.6% +12.8%

Reported revenue +12.8%

Organic revenue +4.0%,

with strong growth at

NANO and BEST

– BSI +3.4% organic

– BEST +11.6% organic

(net of intercompany

eliminations)

Acquisitions add +3.6% to

revenue growth, primarily

Hysitron, B-OST and

InVivo

FX tailwind of $24.6M, or

+5.2%

12

Q4 2017 DRIVERS

Q4-2017 Revenue Bridge [$M]

+$18.8M +$24.6M +$16.8M

Q4 2017 Revenue

Page 13: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Q4 2017 Non-GAAP Results

[$ m, except EPS] Q4-2017 Q4-2016 Δ

Total Revenues 530.5 470.3 +12.8%

Gross Profit 265.0 229.5 +15% Margin (% of revenues) 50.0% 48.8% +120 bps

SG&A -110.7 -99.3 +11%

(% of revenues) 20.9%

21.1%

R&D -43.5 -38.2 +14% (% of revenues) 8.2% 8.1%

Operating Profit 110.8 92.0 +20%

(% of revenues) 20.9% 19.6% +130 bps

Tax Rate 24.5% 21.7% +280 bps

Net Income* 79.8 73.7 +8%

EPS $0.51 $0.46 +11%

Shares Outstanding 156.9 160.7 -2%

Gross margin +120 bps: volume and operating leverage, partially offset by negative FX

Opex increases driven by higher business volume, acquisitions and FX

Operating margin +130 bps: positive operating leverage, which more than offset ~100 bps of headwind from acquisitions and FX

Q4-17 tax rate 24.5% vs. 21.7% in Q4-16, which included valuation allowance reversals

EPS up +11% on revenue growth and operating leverage

Share count lower on share repurchases

13

COMMENTS

* Attributable to Bruker Sum of items may not total due to rounding

Page 14: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

FY 2016 Organic Currency Portfolio FY 2017

$1,611.3M $1,765.9M

FY 2017 Revenue Bridge

Organic Currency Portfolio Total

+3.6% +1.2% +4.8% +9.6%

Reported revenue +9.6%

Organic revenue growth

+3.6%, with growth at

NANO, CALID and BEST

– BSI +2.7% organic

– BEST +14.5% organic

(net of intercompany

eliminations)

Acquisitions add +4.8% to

growth, primarily B-OST,

Hysitron and InVivo

FX adds $19.6M, or

+1.2%

14

FY 2017 DRIVERS

FY 2017 Revenue Bridge [$M]

+$57.8M +$19.6M +$77.2M

FY 2017 Revenue

Page 15: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

© Bruker Corporation 15

FY 2017: Balanced Portfolio Across Three Scientific

Instruments Groups and Across Geographies

Life Science Research in Academia,

Medical Schools and Government

Pharma/Biopharma

Microbiology and Diagnostics

Applied Markets

Industrial & Semiconductor Metrology

Superconductors for Science &

Medicine

(1) For the last twelve months, ended Dec. 31, 2017. (2) Numbers may not add due to rounding.

32%

28%

29%

10%

BioSpin

38%

29%

4% 29%

75%

25%

Systems

CALID

NANO

BEST Service &

After-market (3) Americas

Europe

Rest of World

APAC

Bruker revenue breakdown, % of 2017 revenue(1)(2):

(3) Includes non-system revenue: services,

consumables, software and accessories as reported

in Bruker’s 10-K filings.

Page 16: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

FY 2017 Non-GAAP Results

[$ m, except EPS] FY 2017 FY 2016 Δ

Total Revenues 1,765.9 1,611.3 +9.6%

Gross Profit 849.1 774.4 +10% Margin (% of revenues) 48.1% 48.1%

SG&A -410.3 -387.5 +6%

(% of revenues) 23.2%

24.0%

R&D -162.7 -149.0 +9% (% of revenues) 9.2% 9.2%

Operating Income 276.1 237.9 +16%

(% of revenues) 15.6% 14.8% +80 bps

Tax Rate 25.0% 15.7% 930 bps

Net Income* 192.2 192.3 NM

EPS $1.21 $1.19 +2%

Shares Outstanding 159.1 162.2 -2%

Gross margin on par with 2016. Volume and operating leverage at CALID and NANO offset by higher BEST revenue, BioSpin mix and FX

Operating margin +80 bps: operating leverage, which more than offset dilution from acquisitions & FX

FY 2017 effective tax rate 25% vs. 15.7% in FY 2016 (on 2016 tax reversals)

EPS up +2%; y-o-y tax effects moderate EPS growth, despite solid revenue and operating income growth

Share count lower on share repurchases

16

COMMENTS

* Attributable to Bruker Sum of items may not total due to rounding

Page 17: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

FY 2017 Cash Flow

[$ m] FY 2017 FY 2016 Δ

Net Income 80.3 154.5 -74.2

Depreciation & amortization 63.9 54.3 +9.6

Changes in working capital* -65.5 -40.6 -24.9

Other 75.7 -37.4 +113.1

Operating cash flow 154.4 130.8 +23.6

Capital expenditures -43.7 -37.1 -6.6

Free cash flow 110.7 93.7 +17.0

Free cash flow up $17M

year-over-year:

– US tax reform non-cash

charge of $69M lowered

GAAP net income and

increased “other”

– Cash earnings ~$25M

higher than in 2016

– Working capital: significant

reduction in inventory,

offset by higher volume

related receivables

balances

– Higher bonus and

restructuring accruals

slightly offset by an uptick

in capital expenditures

17

COMMENTS

* WC = (Accounts Receivable + Inventory - Accounts Payable)

Page 18: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

FY 2018 Outlook

18

Page 19: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

FY 2018 Guidance

Revenue Growth y-o-y Approximately +7%

Non-GAAP Operating Margin Expansion y-o-y(1)(2)

+50 bps to +80 bps

Non-GAAP EPS $1.34 to $1.38

19

FY 2018 Guidance: Sustained organic revenue

growth, further operating margin expansion, solid

non-GAAP EPS growth

Organic revenue growth

approximately +3%

FX revenue tailwind:

approximately +4%

Non-GAAP tax rate: ~25%

Fully diluted share count:

~156M shares

Capex: ~$50M

FX assumptions based on

average rates in Jan. 2018:

USD = 110.9 Yen

EUR = 1.22 USD

CHF = 1.04 USD

2018 ASSUMPTIONS

(1) From FY17 non-GAAP operating margin of 15.6%.

(2) Includes approximately -70 bps of headwind from foreign currency translation.

Page 20: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Appendix

20

Page 21: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Q4 2017 GAAP Results

[$M, except EPS] Q4 2017 Q4 2016 Δ

Total Revenues 530.5 470.3 +13%

Gross Profit 255.2 220.4 +16%

Margin (% of sales) 48.1% 46.9%

SG&A -112.1 -100.1 +12%

(% of revenues) 21.1% 21.3%

R&D -43.5 -38.2 +14%

(% of revenues) 8.2% 8.1%

Operating Income 93.7 76.9 +22%

(% of revenues) 17.7% 16.4% +130 bps

Net Income (Loss)* (3.4) 69.0 -105%

(Net Losses per share) / EPS ($0.02) $0.43 -105%

Shares Outstanding 155.7 160.7 -3%

21

* Attributable to Bruker Sum of items may not total due to rounding

Page 22: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Q4 2017 Reconciliation of GAAP and

Non-GAAP Results

[$M, except EPS] Q4 2017 Q4 2016

GAAP Operating Income 93.7 76.9

Restructuring Costs 7.7 8.0

Acquisition-Related Costs 0.8 0.7

Purchased Intangible Amortization 7.0 5.5

Other Costs 1.6 0.9

TOTAL 17.1 15.1

Non-GAAP Operating Income 110.8 92.0

Non-GAAP Interest & Other Expense, net -4.6 2.3

Non GAAP Profit Before Tax 106.2

94.3

Non-GAAP Income Tax Provision -26.0 -20.5

Non-GAAP Tax Rate 24.5% 21.7%

Minority Interest -0.4 -0.1

Non-GAAP Net Income* 79.8 73.7

Non-GAAP EPS $0.51 $0.46

22

Sum of items may not total due to rounding *Attributable to Bruker

Page 23: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

FY 2017 GAAP Results

[$M, except EPS] FY 2017 FY 2016 Δ

Total Revenues 1,765.9 1,611.3 +10%

Gross Profit 813.0 742.5 +9%

Margin (% of sales) 46.0% 46.1%

SG&A -415.9 -390.5 +7%

(% of revenues) 23.6% 24.2%

R&D -162.7 -149.0 +9%

(% of revenues) 9.2% 9.2%

Operating Income 214.7 177.2 +21%

(% of revenues) 12.2% 11.0% +120 bps

Net Income* 78.6 153.6 -49%

EPS $0.49 $0.95 -48%

Shares Outstanding 159.1 162.2 -2%

23

* Attributable to Bruker Sum of items may not total due to rounding

Page 24: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

FY 2017 Reconciliation of GAAP and

Non-GAAP Results

[$M, except EPS] FY 2017 FY 2016

GAAP Operating Income 214.7 177.2

Restructuring Costs 16.2 20.8

Acquisition-Related Costs 10.2 11.1

Purchased Intangible Amortization 29.6 21.7

Other Costs 5.4 7.1

TOTAL 61.4 60.7

Non-GAAP Operating Income 276.1 237.9

Non-GAAP Interest & Other Expense, net -17.5 -8.8

Non GAAP Profit Before Tax 258.6 229.1

Non-GAAP Income Tax Provision -64.7 -35.9

Non-GAAP Tax Rate 25.0% 15.7%

Minority Interest -1.7 -0.9

Non-GAAP Net Income* 192.2 192.3

Non-GAAP EPS $1.21 $1.19

24

Sum of items may not total due to rounding *Attributable to Bruker

Page 25: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Q4 2017 Cash Flow

[$ m] Q4 2017 Q4 2016 Δ

Net Income (Loss) (3.0) 69.1 -72.1

Depreciation & amortization 15.7 13.9 +1.8

Changes in working capital* -21.1 -1.9 -19.2

Other 112.1 9.7 +102.4

Operating cash flow 103.7 90.8 +12.9

Capital expenditures -12.4 -11.1 -1.3

Free cash flow 91.3 79.7 +11.6

Free cash flow up $11.6M,

or +15% y-o-y:

– US tax reform non-cash

charge of $69M lowered

GAAP net income and

increased “other”

– Cash earnings higher

than in Q4-16

– Working capital: higher

volume related

receivables balances

– Higher bonus and

restructuring accruals

slightly offset by an

uptick in capital

expenditures

25

COMMENTS

* WC = (Accounts Receivable + Inventory - Accounts Payable)

Page 26: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Balance Sheet

[$M] Dec 31,

2017 Dec 31,

2016

Cash, Cash Equivalents & Short-term Investments

439.2 500.3

Financial Debt 415.6 411.7

Net Cash 23.6 88.6

26

[$M] Dec 31,

2017 Dec 31,

2016

Total Assets 1,948.5 1,808.4

Working Capital* 714.7 598.2

Intangibles, Net & Other Long-Term Assets

323.2 293.4

* WC = (Accounts Receivable + Inventory - Accounts Payable)

Page 27: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

Q4 2017 GAAP SEGMENT RESULTS:

BSI and BEST GAAP Performance

[$ m] Q4 2017 Q4 2016 Δ

REVENUE

Scientific Instruments (BSI) 484.3 435.0 +11%

Organic Revenue Growth (%) +3.4% -0.3%

Energy & Supercon Technologies (BEST) 51.0 39.0 +31%

Corporate Eliminations -4.8 -3.7

Energy & Supercon Technologies (BEST), net of corporate eliminations Organic Revenue Growth (%)

46.2

+11.6%

35.3

-23.4%

+31%

Total Revenue 530.5 470.3 +12.8%

OPERATING INCOME

Scientific Instruments (BSI) 96.9 73.6 +32%

Energy & Supercon Technologies (BEST) 3.1 2.6 +19%

Corporate Eliminations -6.3 0.7

Total Operating Income 93.7 76.9 +22%

27

Sum of items may not total due to rounding

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FY2017 GAAP SEGMENT RESULTS:

BSI and BEST GAAP Performance

[$ m] FY 2017 FY 2016 Δ

REVENUE

Scientific Instruments (BSI) 1,583.9 1,492.6 +6%

Organic Revenue Growth (%) +2.7% -1.7%

Energy & Supercon Technologies (BEST) 191.2 130.2 +47%

Corporate Eliminations -9.2 -11.5

Energy & Supercon Technologies (BEST), net of corporate eliminations Organic Revenue Growth (%)

182.0

+14.5%

118.7

-8.9%

+53%

Total Revenue 1,765.9 1,611.3 +10%

OPERATING INCOME

Scientific Instruments (BSI) 208.6 168.9 +24%

Energy & Supercon Technologies (BEST) 7.4 6.6 +12%

Corporate Eliminations -1.3 1.7

Total Operating Income 214.7 177.2 +21%

28

Sum of items may not total due to rounding

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FY 2017 Non-GAAP EBITDA

[$M, except EPS] FY 2017 FY 2016 Δ

Non-GAAP Net Income* $192.2 $192.3 NM

GAAP Interest Expense, Net

14.6 12.9 +13%

Non-GAAP Income Tax Provision

64.7 35.9 +80%

GAAP Depreciation Expense

34.3 32.6 +5%

GAAP Amortization of Demonstration Inventories

1.2 16.5 -93%

Total Adjustments 114.8 97.9 +17%

Non-GAAP EBITDA $307.0 $290.2 +6%

29

* Attributable to Bruker Sum of items may not total due to rounding

Page 30: Bruker Corporation (NASDAQ: BRKR) - s1.q4cdn.com · BRUKER CORPORATION Safe Harbor & Reg. G Statement Any statements contained in this presentation that do not describe historical

FY 2017 Return on Invested Capital

[$M, except EPS] FY 2017 FY 2016 Δ

Non-GAAP Operating Income $276.1 $237.9 +16%

Non-GAAP Income Tax Provision

64.7 35.9 +80%

Non-GAAP Operating Income after Tax

211.4 202.0 +5%

Average Total Invested Capital:

Average Long-Term Debt 403.6 328.8 +23%

Average Current Portion of Long-Term Debt

10.1

10.4 -3%

Average Shareholder’s Equity 713.3 713.0 NM

Less Average Cash and Cash Equivalents

333.7 304.8 +9%

Total Average Invested Capital 793.3 747.4 +6%

Return on Invested Capital 26.6% 27.0% -0.4%

30

* Attributable to Bruker Sum of items may not total due to rounding