Q416 earnings slides final-13 feb17

Bruker Corporation (NASDAQ: BRKR)
Q4 2016 Earnings Presentation
Frank Laukien, President & CEO
Anthony Mattacchione, SVP & CFO
Miroslava Minkova, Head of Investor RelationsFebruary 13, 2017
Innovation with Integrity

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, 2015 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

Business Update
Q4 2016 & FY 2016
3

Q4-2016 Performance
 Revenue decline of -$8M, or -1.6% y-o-y
− B-OST and Jordan Valley M&A add +1.9%
− FX lowers revenue by -1.3%
 Organic revenue down -2.2% y-o-y, due to weak
European academic orders earlier in the year and soft
industrial markets, offset in part by China growth
 Non-GAAP gross margin expands +220 basis points
y-o-y to 48.8%
 Non-GAAP operating margin expands +210 basis
points y-o-y to 19.6%
 GAAP EPS of $0.43, compared to $0.36 in Q4-15
 Non-GAAP EPS of $0.46, compared to $0.38 in Q4-15
Q4 Financials
4
Revenues [$M]
478 470
Q4-15 Q4-16
Non-GAAP EPS
Q4-2016: Strong y-o-y margin expansion and
EPS growth, despite revenue decline
-2%
+21%
$0.38
$0.46
Q4-15
Q4-16

FY 2016 Performance
 Revenue decline of -$13M, or -0.8% y-o-y
− Jordan Valley & B-OST acquisitions add +2.0%
− FX lowers revenue by -0.5%
 Organic revenue decline of -2.3% y-o-y, driven
primarily by weak European academic and global
industrial markets, offset in part by China growth
 Non-GAAP gross margin +190 bps y-o-y to 48.1%
 Non-GAAP operating margin +150 bps y-o-y to 14.8%
 Non-GAAP EBITDA $290M, compared to $258M in FY15
 GAAP EPS of $0.95, compared to $0.60 in 2015
 Non-GAAP EPS of $1.19, compared to $0.89 in 2015
 Includes $0.15 of non-cash tax benefits in FY16
 Includes $0.03 of FX transaction gains in FY16
 Non-GAAP ROIC >20% in both FY16 and FY15
2016 Financials
5
Revenues [$ m]
1624 1611
FY 2015 FY 2016
Non-GAAP EPS
FY 2016: Operational improvements drive
+150 bps operating margin expansion
-1%
+34%
$0.89
$1.19
FY 2015
FY 2016

Bruker BIOSPIN Group
 Low-to-mid single-digit revenue growth with strong margin gains
 NMR benefits from better pricing, mix, Q1-16 installation of 1 GHz
NMR, and 2015 restructuring
 Good demand for NMR FoodScreeners™ and clinical research systems
 Good after-market revenue growth with LabScape™
 PCI revenues down low-single digits
 Low-to-mid single-digit revenue decline due to weak European
academic funding, lower H1-16 MALDI Biotyper revenue in China and
the US, partially offset by growth in Optics and Detection products
 Daltonics European orders improve in Q4-16; factory consolidation
and restructuring on plan
 Exciting new Daltonics products MALDI PharmaPulse™, timsTOF™ and
rapifleX™ expected to be profitable growth drivers in FY17
 Optics business grows revenue with strong margin expansion
GROUP OVERVIEW:
FY 2016 Operating Performance
6
Bruker CALID Group

Bruker NANO Group
 Low-single-digit revenue decline (incl. Jordan Valley) due to weak
European academic funding and weak global industrial markets
 AXS products see revenue and margin weakness; factory consolidation
 Nano Surfaces business flat, profitability up due to cost actions
 Semiconductor metrology revenue nearly doubles with Jordan Valley
acquisition and adoption of X-ray tools by major customers
BEST Segment
 Revenue down low-single-digit (incl. B-OST), margins lower after
phase out of ITER and DESY projects in 2015
 Good order growth for superconducting materials, strong backlog and
long-term contracts
 B-OST integration under way (acquired November 2016)
GROUP OVERVIEW:
FY 2016 Operating Performance
7

High Impact Innovation:
Next-gen Optogenetics Multiphoton Cell Microscopy
8
NEW Ultima NeuraLight 3D™
 Simultaneous, all-optical stimulation and imaging platforms for neuroscience
research
 Multi-cell brain research: decode neural connectivity and networks
 Fastest and deepest 3D multiphoton microscopy for neuroscience research
 Strengthens Bruker’s presence in neuroscience
and life science microscopy
 Launched Q4-16
Mouse spermatocyte courtesy of Jackson Labs

High Impact Innovation: rapifleX MALDI
PharmaPulse 2.0 to Accelerate Drug Discovery
9
 Label-free ultra-high throughput mass spec (MS)-
screening for primary screens on millions of
compounds in pharma drug discovery
 First MS to offer speed, specificity and robustness for
pharma primary screens, 100x faster than other MS-
screening technologies
 Launched with rapifleX MALDI-TOF in Q2-16,
bookings and revenue ramp-up started in Q4-16
 SLAS 2017: Introduction of MALDI PharmaPulse 2.0
solution, data from key pharma early adopters
 Select Science ‘New Drug Discovery Product of the
Year’

Complementary, financially disciplined M&A:
Microbiology, Consumables and Pathology Examples
10
 More complete MALDI Biotyper and MALDI Tissuetyper solutions
 High-margin consumables, assays and software for margin expansion
over time
Nov. 2016:
Acquired WIP
Multiplex PCR
Assays &
Syndromic
Panel
Technology for
Microbiology
Jan. 2017: Acquired
Molecular Biology
Consumables for
Microbiology CMO
on MALDI Biotyper
Jan. 2017: Acquired Software for
interpretation of MS Imaging data
Supports MALDI Tissuetyper growth
in MS-based pathology research
 Total investment: $53M
 Projected revenues by 2020: $50-65M
 Projected operating margin by 2020: low- to mid-20s %
Projections for BSI Acquisitions in FY 2016 & Jan. 2017 (7 deals, excluding B-OST):

2017 Key Priorities
Resume Revenue Growth via a combination of
organic growth and M&A contributions
Sustain Margin Expansion as we continue our
Operational & Commercial Excellence journey
Continue to Strengthen Systems and insights by
harmonizing processes, ERP and CRM platforms
Invest in profitable growth in four strategic markets
with fundamentally higher GPMs
Thoughtfully Deploy Capital for sustainable
shareholder returns
11

Financial Update
Q4 2016 & FY 2016
12

NON-GAAP FINANCIAL PERFORMANCE:
Q4-2016 Overview
[$ m, except EPS] Q4-2016 Q4-2015 Δ
Revenues 470.3 478.2 -2%
Operating Income 92.0 83.7 +10%
Margin (%) 19.6% 17.5% +210bps
Non-GAAP EPS $0.46 $0.38 +21%
Free Cash Flow 79.7 138.2 -58.5m
[$ m] Dec 31, 2016 Dec 31, 2015 Δ
Net Cash 88.6 202.5 -56%
Working capital (WC)* 598.2 584.6 +2%
WC-to-revenue ratio $0.37 $0.36 NM
13
COMMENTS
 Operating margin up +210
bps y-o-y on operational
improvements, better pricing
and mix, despite revenue
decline
 2016 factory consolidations
 EPS increase driven by
margin expansion, FX gains,
and lower share count
 Free cash flow of $79.7M
 Share buyback, dividend and
M&A result in lower net cash
 Working capital ratio steady
* WC = (Accounts Receivable + Inventory - Accounts Payable)

Q4 2015 Organic Currency Portfolio Q4 2016
$478.2M
$470.3M
Q4 2016 Revenue Bridge
Organic Currency Portfolio Total
-2.2% -1.3% +1.9% -1.6%
 Reported revenue decline
of -1.6%
 Organic revenue decline
of -2.2% driven by weak
European academic
orders earlier in the year
and soft global industrial
markets
 B-OST and Jordan Valley
acquisitions add +1.9%
to revenue growth
 Foreign currency
translation negative by
-$6.4M, or -1.3%
14
Q4 2016 DRIVERS
Q4-2016 Revenue Bridge [$M]
-$10.4 -$6.4 +$8.9
Q4 2016 Revenue for Bruker Corporation

Q4 2016 Non-GAAP Results
[$ m, except EPS] Q4 2016 Q4 2015 Δ
Total Revenues 470.3 478.2 -2%
Gross Profit 229.5 222.8 +3%
Margin (% of revenues) 48.8% 46.6% +220 bps
SG&A -99.3 -102.4 -3%
(% of revenues) 21.1% 21.4%
R&D -38.2 -36.7 +4%
(% of revenues) 8.1% 7.7%
(% of revenues) 19.6% 17.5% +210 bps
Tax Rate 21.7% 19.1% +260 bps
Net Income* 73.7 64.4 +14%
EPS $0.46 $0.38 +21%
Shares Outstanding 160.7 168.7 -5%
 Gross margin expansion of
+220 bps y-o-y driven by
NMR pricing & mix, BBIO
2015 restructuring, and
strong execution in Nano
Surfaces and Daltonics
businesses
bps y-o-y driven by
operational improvements
and cost control
 Q4-2016 effective tax rate
~21.7% (15.7% full year
2016 rate)
 EPS increase on margin
expansion, FX gains, and
lower share count
15
COMMENTS
* Attributable to BrukerSum of items may not total due to rounding

FY 2015 Organic Currency Portfolio FY 2016
$1,623.8M
$1,611.3M
FY 2016 Revenue Bridge
Organic Currency Portfolio Total
-2.3% -0.5% +2.0% -0.8%
 Organic revenue decline of
-2.3% due to weak
European academic and
global industrial markets
 Jordan Valley and B-OST
acquisitions add +2.0%
 FX headwind of -0.5%
 Reported revenue down
-0.8% y-o-y
16
FY 2016 DRIVERS
FY 2016 Revenue Bridge [$ m]
-$36.6 -$8.3 +$32.4
FY 2016 Revenue

FY 2016 Non-GAAP Results
[$ m, except EPS] FY 2016 FY 2015 Δ
Total Revenues 1,611.3 1,623.8 -1%
Gross Profit 774.4 751.0 +3%
Margin (% of revenues) 48.1% 46.2% +190 bps
SG&A -387.5 -390.1 -1%
(% of revenues) 24.0% 24.0%
R&D -149.0 -145.7 +2%
(% of revenues) 14.8% 13.3% +150 bps
Tax Rate 15.7% 22.0% -630 bps
Net Income* 192.3 151.0 +27%
EPS $1.19 $0.89 +34%
 Gross margin expansion of
+190 bps y-o-y driven by
NMR pricing, mix and 2015
restructuring. Optics and
Nano Surfaces contribute.
 Opex ~flat, despite JV and
B-OST acquisitions
bps y-o-y to 14.8%
 Audit settlements, release of
valuation allowances,
favorable jurisdictional mix
lower tax rate, add ~$0.15 to
EPS
 FX transaction gains add
~$0.03 to EPS
 Share buybacks add $0.05 to
EPS
17
COMMENTS

FY 2016 Cash Flow
[$ m] FY 2016 FY 2015 Δ
Net Income 154.5 104.9 +49.6
Depreciation & amortization 54.3 53.3 +1.0
Changes in working capital* -40.6 38.9 -79.5
Other -37.4 32.1 -69.5
Operating cash flow 130.8 229.2 -98.4
Capital expenditures -37.1 -34.2 -2.9
Free cash flow 93.7 195.0 -101.3
 Y-o-y free cash flow
comparison driven by:
– Higher cash earnings
offset by restructuring
and tax payments
– Inventory builds in
BioSpin and BEST for
long-term contracts
– Higher 2015 bonuses
paid in Q1-16
– Q1-16 tax payments
associated with 2015
cash repatriation, and
higher 2016 estimated
tax payments
18
COMMENTS

FY 2017 Guidance
Revenue Growth y-o-y +1.5% to +2.5%
Non-GAAP Operating
Margin Expansion y-o-y(1)(2)
+40 bps to +70 bps
Non-GAAP EPS $1.05 - $1.09
20
FY 2017 Guidance: Return to organic revenue
growth, continue operating margin expansion
 Organic revenue growth of
+1% to +2%
 Acquisition revenue
growth: +3.5% to +4%
 FX revenue headwind:
-3% to -3.5%
 Non-GAAP tax rate: ~25%
 Fully diluted share count:
~161M shares
 Capex: ~$45M
 Average Jan. 2017 rates:
USD = 115.1 Yen
EUR = 1.06 USD
USD = 1.01 CHF
2017 ASSUMPTIONS
(1) From a FY16 non-GAAP operating margin of 14.8%.
(2)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 2017.

Q4 2016 GAAP Results
[$M, except EPS] Q4 2016 Q4 2015 Δ
Total Revenues 470.3 478.2 -2%
Gross Profit 220.4 211.5 +4%
Margin (% of sales) 46.9% 44.2%
SG&A -100.1 -103.0 -3%
(% of revenues) 21.3% 21.5%
R&D -38.2 -36.7 +4%
(% of revenues) 16.4% 14.8%
Net Income* 69.0 61.4 +12%
EPS $0.43 $0.36 +19%
22

Q4 2016 Reconciliation of GAAP and
Non-GAAP Results
[$M, except EPS] Q4 2016 Q4 2015
GAAP Operating Income 76.9 70.7
Restructuring Costs 8.0 8.1
Acquisition-Related Costs 0.7 -3.3
Purchased Intangible Amortization 5.5 5.3
Other Costs 0.9 2.9
TOTAL 15.1 13.0
Non-GAAP Operating Income 92.0 83.7
Non-GAAP Interest & Other Income (Expense), net* 2.3 -3.4
Non GAAP Profit Before Tax 94.3 80.3
Non-GAAP Income Tax Provision -20.5 -15.3
Non-GAAP Tax Rate 21.7% 19.1%
Minority Interest -0.1 -0.6
Non-GAAP Net Income** 73.7 64.4
Non-GAAP EPS $0.46 $0.38
23
Sum of items may not total due to rounding
* Excludes $9.2 million of net gains for YTD 2016
**Attributable to Bruker

FY 2016 GAAP Results
[$M, except EPS] FY 2016 FY 2015 Δ
Total Revenues 1,611.3 1,623.8 -1%
Gross Profit 742.5 708.6 +5%
Margin (% of sales) 46.1% 43.6%
SG&A -390.5 -392.2 Flat
(% of revenues) 24.2% 24.2%
R&D -149.0 -145.7 +2%
(% of revenues) 11.0% 9.0%
Net Income* 153.6 101.6 +51%
EPS $0.95 $0.60 +58%
24

FY 2016 Reconciliation of GAAP and
Non-GAAP Results
[$M, except EPS] FY 2016 FY 2015
GAAP Operating Income 177.2 145.7
Restructuring Costs 20.8 29.3
Acquisition-Related Costs 11.1 -4.7
Purchased Intangible Amortization 21.7 20.8
Other Costs 7.1 24.1
TOTAL 60.7 69.5
Non-GAAP Operating Income 237.9 215.2
Non-GAAP Interest & Other Income (Expense), net* -8.8 -17.5
Non GAAP Profit Before Tax 229.1 197.7
Non-GAAP Income Tax Provision -35.9 -43.4
Non-GAAP Tax Rate 15.7% 22.0%
Minority Interest -0.9 -3.3
Non-GAAP Net Income** 192.3 151.0
Non-GAAP EPS $1.19 $0.89
25
* Excludes $9.2 million of net gains for FY 2016 and $0.2 million of net losses for FY 2015
**Attributable to Bruker

Q4 2016 Cash Flow Statement
[$M] Q4 2016 Q4 2015 Δ
Net Income 69.1 62.0 +7.1
Depreciation & amortization 13.9 13.3 +0.6
Changes in working capital* -1.9 27.5 -29.4
Other 9.7 46.8 -37.1
Operating cash flow 90.8 149.6 -58.8
Capital expenditures -11.1 -11.4 +0.3
Free cash flow 79.7 138.2 -58.5
 Y-o-y free cash flow
comparison driven by:
– Timing of accounts
receivables payments
– Changes in income tax
provisions
26
COMMENTS

Balance Sheet
[$M] Dec 31, 2016 Dec 31, 2015
Cash, Cash Equivalents & Short-term
Investments
500.3 468.3
Financial Debt 411.7 265.8
Net Cash 88.6 202.5
27
[$M] Dec 31, 2016 Dec 31, 2015
Total Assets 1,812.9 1,730.0
Working Capital* 598.2 584.6
Intangibles, Net & Other Long-Term
Assets
301.0 267.4

Q4-16 GAAP SEGMENT RESULTS:
BSI and BEST GAAP Performance
[$ m] Q4 2016 Q4 2015 Δ
REVENUE
Scientific Instruments (BSI) 435.0 438.9 -1%
Organic Revenue Growth (%) -0.3% 0.0%
Energy & Supercon Technologies (BEST) 39.0 42.5 -8%
Organic Revenue Growth (%) -20.0% +31.7%
Corporate Eliminations -3.7 -3.2
Total Revenue 470.3 478.2 -2%
OPERATING INCOME
Scientific Instruments (BSI) 73.6 65.0 +13%
Energy & Supercon Technologies (BEST) 2.6 5.4 -52%
Corporate Eliminations 0.7 0.3
Total Operating Income 76.9 70.7 +9%
28

FY 2016 Non-GAAP EBITDA
[$M, except EPS] FY 2016 FY 2015 Δ
Non-GAAP Net Income* $192.3 $151.0 +27%
GAAP Interest Expense, Net 12.9 11.8 +9%
Non-GAAP Income Tax Provision 35.9 43.4 -17%
GAAP Depreciation Expense 32.6 32.5 Flat
GAAP Amortization of Demonstration
Inventories
16.5 19.4 -15%
Total Adjustments 97.9 107.1 -9%
Non-GAAP EBITDA $290.2 $258.1 +12%
29

FY 2016 Return on Invested Capital
[$M, except EPS] Q4 2016 Q4 2015 Δ
Non-GAAP Operating Income $237.9 $215.2 +11%
Non-GAAP Income Tax Provision 35.9 43.4 -17%
Non-GAAP Operating Income after
Tax
202.0 171.8 +18%
Average Total Invested Capital:
Average Long-Term Debt 328.8 310.1 +6%
Average Current Portion of Long-Term
Debt
10.4 0.7 +1386%
Average Shareholder’s Equity 713.0 752.3 -5%
Less Average Cash and Cash
Equivalents
304.8 293.3 +4%
Total Average Invested Capital 747.4 769.8 -3%
Return on Invested Capital 27.0% 22.3% +4.7
30

Q416 earnings slides final-13 feb17

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Q416 earnings slides final-13 feb17