Bruker Corporation Wells Fargo 21st Annual Healthcare Conference

Thank you so much, Evan, for having us. Good morning, everybody. Sorry to almost fall flat on my face. A few things that I would like to maybe set out there as an opening remark, and they relate to international conferences and events that happen to be in Europe. It is not about the European markets. One was a big NMR and structural biology conference in Davos, of all places, unrelated to the World Economic Forum. As you know, we have reorganized as of July 1, and created the Bruker BioSpin Group that combines a number of technologies and applications, and most importantly, NMR with mass spectrometry.

That is very timely, or maybe we should have done it more before, but the opportunities there are really quite unique, and important, particularly in drug discovery, but also to our theme of having the best tools and the most informative data, even for foundation model training and all of that, with deep data that goes beyond the genome. Genome is important, it is foundational, but then what really happens at the phenome level. I am delighted to say that NMR by itself, it is a complementary technique. It is not, that is how you do structural biology, but you combine it with other vendors, Cryo-EM, or crystallography, which we do ourselves, so you do it at beam lines, and with NMR, and more and more also with mass spec, so-called cross-linking mass spectrometry, which is taking a big step up, and we have the right systems for that.

The combination gives you structural enhancements. It also very importantly gives you binding and dynamics, which is really crucial. Even if you have structured so-called globular proteins, they are not a rigid lock and you are looking for just the right key or the degrader or so. There is dynamics. When you stick the key into the lock, the lock closes around you. It is called an induced fit. For all of these things, NMR beautifully complements AlphaFold, not our product. Cryo-EMs and other technologies, and more and more also even for structural biology and the important protein interactions, mass spectrometry, our timsTOF platform and derivatives thereof. They are combining that and finding more niches also for mRNA drugs, whether RNA is a drug target or a therapeutic modality itself. NMR rules. It is the technology. The others cannot do it. It is very important. Another field, the TIDES, which is often the larger peptides, small proteins, or nucleotides.

Again, NMR has a very, very unique role, often in combination with mass spectrometry. We are really now under Juergen Srega's leader in that biosystems group, under Juergen Srega's leadership can combine those in pretty unique metabolomics, even glyco- and workflow solutions for drug discovery, or for training AI models with really deep and insightful data as opposed to just a lot of surface data. One more remark, if I may, because we also visited, and that happens to be in the Netherlands, in Leiden, in Europe, of course. We had our kickoff meetings of our Mimetas acquisition or majority investment. We own about 90% of that business now. Why is Bruker doing something new? Do not you have your plate full? Yeah, but this is really, really important.

Every drug discovery conference I go to, they are talking about multi-omics and spatial and biology 2.0 or post-genomic biology, whatever you want to call it. They are also all very keen, in addition to animal models, which will not go away, and in preclinical work, to have these humanized microphysiological systems. Sometimes they are called NAMs, which stands for new approaches. NAMs are humanized microphysiological systems. We have been looking at that market of smaller companies for the last more than a year, fairly systematically. We have noticed that Mimetas, we think, that we acquired now, has the best automation, laboratory standard automation, microtiter plates. They also have the most physiological value, we think, and they think, because it is membrane-free and does organs-on-a-chip without having a membrane that distorts it again. So it is an incredibly important technique.

It is only about a EUR 10 million business right now, but that could be a future EUR 50 million to EUR 100 million business. It will take some years. Also, it is very synergistic. It will pull in metabolomics and proteomics tools and some of our microscopy and maybe even spatial biology tools. It will often be at the lead because that is what biopharma looks at. By the way, it is essentially all consumables and aftermarket business, so we like that in our business mix. In biopharma drug discovery and development, and often will pull in additional Bruker and sometimes other vendor systems to get the most meaningful information out of these new approaches, NAMs, or humanized, not mouse, humanized microphysiological systems. I will leave it at that. There is other stuff, but those are two things that I thought would be worth sharing.

Sure. I will take this. I would say generally speaking, the highlight of the quarter really was our EPS performance. We outperformed both the consensus and our own expectations.

We got a little bit of a boost from some tariff recovery elements, but nonetheless, overall performance at the EPS line was quite good. This is part of our broader program to increase our EPS performance and strengthen our operating margin. We seem to be doing very well, at least through the first two quarters, particularly driven by some of our cost-saving actions that kicked in in the second quarter in particular. Beyond that, I think the other highlight really was our book-to-bill, which is over 1x again. This is the fourth quarter in a row in which we have seen really good order bookings performance. I would say orders organically were above 10% growth on a year-over-year basis. There were a few other highlights in those orders. I think most investors are interested to hear that we really did see a bit of pivot in China.

Our order performance in China was up over 20% in the second quarter. We saw some really good signals for another quarter related to biopharma. These were also really encouraging signs for us. I know a number of our peers are also performing well in these areas. We had struggled, I would say, after a relatively weak 2025 performance in China, to see double-digit order growth is really encouraging. This was, especially for China, this was really broadly based across biopharma, across the academic side, and even in the semi space where we have a pretty good market position there. I think China looked good, biopharma quite strong as well, mostly in large pharma in the second quarter. Then we had a better performance excluding the U.S. in the academic and government research markets. That also showed greater than 20% order growth in those markets.

I think that what that shows generally at our level is that we have the right products, the right solutions for the right markets. It is taking a little longer, perhaps on the revenue performance to be reflected, but that is coming.