bruker drives profitable growth by enabling breakthrough … · 2018. 4. 5. · etd market segment:...

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


1. Company Overview

2. Innovation & Transformation

3. Operational Initiatives & Financials

Agenda


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


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.



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:


…which has created leading market positions for

much of our product portfolio


1. Company Overview



Agenda


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)


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)


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


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


4. Clinical Research & Molecular Diagnostics


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


1. Company Overview



Agenda


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


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


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


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


The Bruker Investment

Opportunity


www.bruker.com

bruker drives profitable growth by enabling breakthrough … · 2018. 4. 5. · etd market segment:...

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