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Bruker Corporation (NASDAQ: BRKR)

Q1 2016 Earnings Presentation

Frank Laukien, President & CEO Anthony Mattacchione, SVP & CFO Joshua Young, VP, IR & Corporate Development May 4, 2016

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 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, 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 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, 2015 and subsequently filed Quarterly reports on Form 10-Q. 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

Q1 2016

3

Q1-2016 Performance

• Revenue growth of $22M, or +6.2% y-o-y

− FX lowers revenue by -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
• Non-GAAP EPS grows by +50% y-o-y

Q1 Financials

4

Revenues [$ m]

353 375 Q1-15 Q1-16

Non-GAAP EPS

Momentum continues with good organic revenue growth and margin expansion in Q1-16

+6% +50% $0.14 $0.21 Q1-15 Q1-16

Bruker BIOSPIN Group

• Strong revenue growth for BioSpin Group due to weak Q1-15

comparison and high order growth in 2015

• BioSpin NMR products benefit from volume and price increases, as

well as from acceptance of first shielded Aeon™ 1 GHz NMR

• Steady growth in applied markets and improvement in service and

after-market revenues as a result of new LabScape service offering

• 2015 restructuring is positively affecting operating performance
• CALID Group delivers solid organic revenue gowth
• Optics delivers strong growth driven by near infrared and remote

sensing products

• Daltonics delivers high-single digit organic growth due to continued

growth of MALDI Biotyper and higher service revenue

• Daltonics focused on acceleration of orders for new products
• Detection performance driven by large legacy order with a low margin

GROUP OVERVIEW:

Q1 2016 Performance

5

CALID Group Bruker CALID Group

Bruker NANO Group

• Weak NANO Group revenue performance primarily due to soft

industrial markets: petroleum, mining, metals and cement

• AXS reports sluggish start to the year with weakness in Europe and

lower funding for single-crystal products

• Nano Surfaces continues to see weak demand in all markets
• Jordan Valley semiconductor metrology tools with slow start in Q1-16,

but improving orders and backlog

BEST Segment

• Flat revenues as a result of phase out of ROSATOM and DESY projects
• Good revenue growth for superconducting wire as a result of strong

backlog and long-term contracts, but margins under pressure

• High-temperature superconducting (HTS) tapes make technical and

quality progress; commercial revenue expected in 2017

GROUP OVERVIEW:

Q1 2016 Performance

6

Innovation with Integrity

ENC 2016 ANNOUNCEMENT:

World's first shielded Aeon 1 GHz System installed

• 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
• GHz magnet technology, new NMR probes and methods enable novel studies of IDPs, larger

protein structures and of complete membrane proteins

7

Aeon 1 GHz at Research Center for Bio-Macromolecules at University of Bayreuth

Innovation with Integrity

ENC & ECCMID CONFERENCE ANNOUNCEMENTS IN APRIL 2016:

NMR expansion into applied markets; New workflows & consumables for MALDI Biotyper

8

• New Honey Profiling

module in NMR FoodSceener™

• Disposable MBT Biotargets

96 improve lab efficiency for MALDI Biotyper

• New high-value resistance

testing workflows (RuO)

• Updated Wine Profiling

module in NMR FoodSceener™

NMR HoneyScreener MBT Biotargets 96 NMR WineScreener

2016 Key Priorities

Continue Margin Expansion as we transition from our three-year Transformation phase to

• ur next phase of Operational & Commercial

Excellence Strengthen systems and management insights by harmonizing business processes and ERP platforms Accelerate profitable growth in four strategic growth markets Reemphasize strong focus on customers, as well as on product and business innovation

9

Financial Update

Q1 2016

10

NON-GAAP FINANCIAL PERFORMANCE:

Q1-2016 Overview

[$ m, except EPS] Q1-2016 Q1-2015

Δ

Revenues 375.4 353.5 +6% Operating Income 47.3 35.8 +32%

Margin (%) 12.6% 10.1%

Non-GAAP EPS $0.21 $0.14 +50% Free Cash Flow

• 22.0

21.3

• 43M

[$ m] Mar 31, 2016 Mar 31, 2015

Δ

Net Cash 118.3 138.7

• 14%

Working capital (WC)* 598.4 614.4

• 3%

WC-to-revenue ratio 0.36 0.35 +0.01

11

COMMENTS

• Operating leverage results in

increased operating income and EPS

• Reduction in customer

advances, taxes on cash repatriation and other items result in negative free cash flow of -$22M

• Share buyback and dividend

payment result in lower net cash

• Lower working capital due to

33 day improvement in cash conversion cycle

• FX drives the increased

WC-to-revenue ratio

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

Q1 2015 Organic Currency Portfolio Q1 2016 $353.5M $375.4M

Q1 2016 revenue bridge

Organic Currency Portfolio Total

+5.6%

• 0.9%

+1.5% +6.2%

• Organic revenue growth
• f +5.6% driven by

strong performance in BioSpin and CALID Groups

• First full quarter of

Jordan Valley acquisition drives portfolio effect

12

Q1 2016 DRIVERS Q1-2016 Revenue Bridge [$ m]

+$19.8

• $3.0

+$5.1

Q1 2016 Revenue for Bruker Corp.

Q1 2016 Non-GAAP Results

[$ m, except EPS] Q1 2016 Q1 2015

Δ

Total Revenues 375.4 353.5 +6% Gross Profit 175.4 167.1 +5%

Margin (% of revenues) 46.7% 47.3%

SG&A

• 92.0
• 94.1
• 2%

(% of revenues) 24.5% 26.6%

R&D

• 36.1
• 37.2
• 3%

(% of revenues) 9.6% 10.5%

Operating Income 47.3 35.8 +32%

(% of revenues) 12.6% 10.1%

Tax Rate

17.7% 27.2%

• 950 bps

Net Income* 34.3 23.1 +48% EPS $0.21 $0.14 +50% Shares Outstanding 164.3 169.7

• 3%
• Gross margin: increase

in BioSpin volume, mix, price, and restructuring effects; offset by lower NANO volume and unfavorable mix in CALID

• Continuing focus on
• perating expense

leverage

• Audit settlement and

jurisdictional mix in Q1 lower tax rate

• Share buyback program

commenced in November 2015 results in lower share count

13

COMMENTS

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

Q1 2016 Cash Flow Statement

[$ m] Q1 2016 Q1 2015

Δ

Net Income 23.6 6.9 +16.7 Depreciation & amortization 13.2 13.5

• 0.3

Changes in working capital*

• 1.3

30.5

• 31.8

Other

• 49.5
• 23.9
• 25.6

Operating cash flow

• 14.0

27.0

• 41.0

Capital expenditures

• 8.0
• 5.7
• 2.3

Free cash flow

• 22.0

21.3

• 43.3
• Y-o-Y free cash flow

comparison driven by: – Higher customer advances due to strong NMR orders in Q1-15 – Higher 2015 bonus payments paid in Q1-16 – Tax payments in Q1-16 associated with 2015 cash repatriation

14

COMMENTS

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

2016 Outlook

15

FY-2016 Guidance

Organic Revenue Growth Approximately +3% Non-GAAP Operating Margin Expansion y-o-y Approximately +100 bps Non-GAAP EPS $0.97 - $1.02

16

FY-2016 Guidance - Unchanged

• FY 2016 tax rate:

25%-28%

• Fully diluted share

count: 163M-165M shares

• Capex: ~$50M
• Current currency

assumptions: Yen/USD: 113 USD/EUR: 1.14 CHF/USD: 0.960

2016 ASSUMPTIONS

Appendix

17

Q1 2016 GAAP Results

[$ m, except EPS] Q1 2016 Q1 2015

Δ

Total Revenues 375.4 353.5 +6% Gross Profit 166.8 160.2 +4%

Margin (% of sales) 44.4% 45.3%

SG&A

• 92.7
• 94.6
• 2%

(% of revenues) 24.7% 26.8%

R&D

• 36.1
• 37.2
• 3%

(% of revenues) 9.6% 10.5%

Operating Income 34.0 15.2 +124%

(% of revenues) 9.1% 4.3%

Net Income* 23.6 6.5 +263% EPS $0.14 $0.04 +250% Shares Outstanding 164.3 169.7

• 3%

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

Q1 2016 Reconciliation of GAAP and Non-GAAP Results

[$ m, except EPS] Q1 2016 Q1 2015 GAAP Operating Income 34.0 15.2

Restructuring Costs 3.8 3.3 Acquisition-Related Costs 1.9 0.2 Purchased Intangible Amortization 5.4 5.2 Other Costs 2.2 11.9 TOTAL 13.3 20.6

Non-GAAP Operating Income 47.3 35.8

Non-GAAP Interest & Other Income (Expense), net

• 5.6
• 3.5

Non GAAP Profit Before Tax 41.7 32.3 Non-GAAP Income Tax Provision

• 7.4
• 8.8

Non-GAAP Tax Rate 17.7% 27.2% Minority Interest 0.0

• 0.4

Non-GAAP Net Income* 34.3 23.1 Non-GAAP EPS $0.21 $0.14

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

Balance sheet

[$ m] Mar 31, 2016 Dec 31, 2015 Mar 31, 2015 Cash, Cash Equivalents & Short-term Investments 420.5 468.3 492.3 Financial Debt 302.2 265.8 353.6 Net Cash 118.3 202.5 138.7

20

[$ m] Mar 31, 2016 Dec 31, 2015 Mar 31, 2015 Total Assets 1,739.8 1,730.0 1,771.7 Working Capital* 598.4 584.6 614.4 Intangibles, Net & Other Long-Term Assets 275.4 267.4 238.3

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

Q1-16 GAAP SEGMENT RESULTS:

BSI and BEST GAAP Performance

[$ m] Q1 2016 Q1 2015

Δ

REVENUE

Scientific Instruments (BSI) 350.4 327.5 +7%

Organic Revenue Growth (%) +6.2%

• 3.6%

Energy & Supercon Technologies (BEST) 27.2 27.5

• 1%

Organic Revenue Growth (%) +0.2%

• 4.1%

Corporate Eliminations

• 2.2
• 1.5

Total Revenue 375.4 353.5 +6%

OPERATING INCOME

Scientific Instruments (BSI) 33.0 13.7 +141% Energy & Supercon Technologies (BEST) 0.0 1.0

• 100%

Corporate Eliminations 1.0 0.5 Total Operating Income 34.0 15.2 +124%

21 Sum of items may not total due to rounding