Preliminary Results Announcement
9 June 2015

The Business of Science®

Jonathan Flint – Chief Executive
Kevin Boyd – Group Finance Director© Oxford Instruments 2015

Page 1

AgendaThe Business of Science®

•••
•
•

FY 2014/2015 performance
Return to growth plan and restructuring
Financial review
Operational review
Current trading and outlook© Oxford Instruments 2015

Page 2Performance
The Business of Science®

• Full year performance in line with re-set expectations in achallenging year
• Swift and decisive cost saving programme• Strategic and operational progress• Long-term demand drivers for our tools and services
remain intact© Oxford Instruments 2015

Page 3

Sales Progress
The Business of Science®

£m
450.0
400.0

14 Cubed
11.0% CAGR

Total: 9 years
12.5% CAGR

350.0
300.0
250.0

5 year plan
14.4% CAGR

200.0

150.0
100.0
50.0
0.0
2005/06© Oxford Instruments 2015

2006/07

2007/08

2008/09

2009/102010/112011/122012/132013/142014/15

Page 4

Developments in the Second Half
The Business of Science®

H2 Position
January
2015 Position

Current Position

RussiaKey export licenses
rejected. Previously
approved licenses
revokedNo significant orders
expected in current year

Japan

Expected recovery slower
than expected

Orders now showing
improvement

Industrial Analysis

Dilution of competitiveposition

New products sellingwell© Oxford Instruments 2015

Page 5

Accelerated Cost Reduction Plan
The Business of Science®

Planned

Achieved

Headcount

5% reduction

7% reduction

Annual Cost Saving£6 million£8 million

Site Rationalisation

6 sites assessed

6 sites to close byhalf year© Oxford Instruments 2015

Page 6

Return to Growth Plan
The Business of Science®

• Research and Development spend increased to 9.1% ofsales• Extensive management road show focusing on staffengagement• Acquisition and Joint Venture© Oxford Instruments 2015

Page 7

Acquisition: Medical Imaging Resources
part of Service sector
The Business of Science®

• MIR specialises in CT and MRI scanners in theUSA• Build, lease and service of mobile systems• Oxford Instruments Healthcare now much larger player inindependent service provider market in USA• Now offer full service to broader customer base
• Positions us well to maximise the opportunities available
through the Affordable Healthcare Act© Oxford Instruments 2015

Page 8

Joint Venture
Omicron and Scienta Scientific AB
The Business of Science®

• Joint venture comprising Scienta Scientific AB andOmicron• Creates largest player in exciting field of Surface Science• Oxford Instruments holds 47% share capital, 2 of 5 boardseats• Opportunities to enhance product development, cut
production costs, broaden product range• Extends market reach and strengthens customer
relationships© Oxford Instruments 2015

Page 9

The Business of Science®

Financial Review
Kevin Boyd

© Oxford Instruments 2015

Page 10

Financial Highlights
The Business of Science®

2014/15

2013/14

ChangeOrders (£m)

386.6

342.2

13.0%Revenues (£m)

385.5360.1

7.1%

Operating profit (£m)

42.7

50.3

-15.1%

Return On Sales (%)

11.1%

14.0%

-2.9ppAdjusted profit before tax (£m)*

35.6

47.1

-24.4%

Adjusted EPS (pence)*

48.2

67.7

-28.8%

Dividend (pence)

13.0

12.4

4.8%

(118.9)(124.3)

5.4

Net Cash/(Debt) (£m)
*Adjusted numbers are stated to give a better understanding of the underlying business.
Details of adjusting items can be found in Note 1 of the Financial Statements© Oxford Instruments 2015

Page 11Sales Bridge
The Business of Science®

385.5

54.8£m400.0(11.6)

360.1(10.7)

(2.1)

(5.0)

350.0

300.0

250.0

200.0

150.0

100.0

50.0

2013/14© Oxford Instruments 2015

Vol

FxPricingCompletedContracts

M&A

2014/15
Page 12

Segmental Sales
The Business of Science®

£‘m

Nanotechnology
Tools

Industrial
Products

Service

Total*

2013/14

180.6

114.7

66.4

360.1

Organic(13.7)(7.5)

2.3(18.7)

FX

(6.2)

(2.4)

(2.1)

(10.7)

Acquisitions

50.5

2.3

2.0

54.8

2014/15

211.2

107.1

68.6

385.5

Reported

17%

-7%

3%7%

Underlying-8%-4%

7%-4%

Growth* Excluding inter-segmental revenues© Oxford Instruments 2015

Page 13

Sales by Geography
The Business of Science®

2015 FY2014 FY

2%3%30%34%32%37%34%28%EuropeAsia© Oxford Instruments 2015

North America
RoW

Page 14

Market Segments
The Business of Science®

GroupNanotechnology
Tools

5% 2%
3%4%1%

15%

5%

Industrial Products

7% 1%

3%6%6%

35%

54%
42%
19%
85%

6%
6%
3%
35%
42%
7%

© Oxford Instruments 2015

Research and AcademiaLife Sciences

Environment

Metals & Construction

Semicon/IT

Energy7%

Page 15

Profit Bridge
The Business of Science®

£m47.150.045.0

40.0
35.0

(5.0)
(2.8)
(2.4)

(2.0)

7.9

(3.9)

35.6

(4.3)
1.0

30.0
25.0
20.0
15.0
10.0
5.0
0.0

© Oxford Instruments 2015

Page 16

Segmental Profit
The Business of Science®

£'M

Nanotechnology
Tools

Industrial
Products

ServiceTotal

2013/14

21.2

15.6

13.5

50.3

Organic

(7.9)

(6.4)

1.6

(12.7)

FX

(0.7)

(1.9)

(0.2)

(2.8)

Acquisitions

8.1

(1.0)

0.8

7.9

2014/15

20.7

6.3

15.7

42.7

2013/14

11.7%

13.6%

20.3%

14.0%

2014/15

9.8%

5.9%

22.9%

11.1%ROS© Oxford Instruments 2015

Page 17

Currency Exposure
The Business of Science®

Sales £'mProfit £'m

250.0

100.0

200.0

80.0
60.0

150.0
40.0
100.0

20.0
-50.0

-20.0
Sterling© Oxford Instruments 2015

USDollar

Euro

Yen

Other

Sterling

US
Dollar

Euro

Yen

Other

-40.0
-60.0

Page 18

Cash
The Business of Science®

£m60.0

53.0

(5.1)

(5.2)
50.0

40.0

(8.0)

(5.9)
(9.1)

30.0
(5.0)
20.0

(1.2)

1.7

(7.1)
(2.7)

10.0

5.40.0© Oxford Instruments 2015

Page 19

Restructuring
The Business of Science®

£’m2014/15

2015/16

Total

Income Statement

9.9

1.4

11.3

Cash

1.2

7.4

8.6

Benefit-8.0

8.0• 6 sites to close• 7% reduction in employees• Plasma Technology exit from high volume production
semiconductor market© Oxford Instruments 2015

Page 20

M&A Activity Post Year End
The Business of Science®

Pro-forma Annual
Consideration Sales
EBIT£'mDateMIR

1/5/15Acquisition

15.2

10.7

1.8

Omicron28/5/15

Disposal-28.5(0.6)

Scienta-Omicron

28/5/15 Joint Venture--1.0© Oxford Instruments 2015

Page 21

The Business of Science®

Operational ReviewJonathan Flint© Oxford Instruments 2015

Page 22

Our Businesses
The Business of Science®

Nanotechnology Tools

Industrial Products

ServiceHigh-performancetechnology products

Analytical instruments
and high technology
components

Service, support, training,refurb, consumables,
accessories• NanoSolutions• NanoCharacterisation• Industrial Analysis• Industrial Components• OI Healthcare• OiService - own products© Oxford Instruments 2015

Page 23

Nanotechnology Tools
highest technology products serving research and industrial customers in thepublic and private sectors

The Business of Science®

• Andor contributed strongly• NanoScience and Asylum performing well
• Plasma Technology affected by continued weak
demand for HBLED and Russian sanctions• NanoAnalysis generally strong. Weaker in Japan• Omicron progressed to break even and placed inJoint Venture© Oxford Instruments 2015

Page 24

Industrial Products
analytical systems for quality control, environmental and compliance testing,and components for industry and research

The Business of Science®

• Weaker performance in the year
• Delayed launch of X-MET8000• Building improved distribution channels in North
America and China• ITER completion in Q1 2014 yielded tough comparators• Integration of acquisitions Roentgenanalytik andRMG near completion• Maxxi 6, the first fully developed product fromRoentgenanalytik acquisition© Oxford Instruments 2015

Page 25

Serviceservice, support, training, refurbishment, consumables and accessories
The Business of Science®

• Good performance in all territories• Ongoing success of MRI and CT scannerservicing business• Completion of Siemens MRI service• Acquisition of Medical Imaging Resources© Oxford Instruments 2015

contract

Page 26

Summary
The Business of Science®

• Orders and revenues are up; adjusted profit before tax isdown• Challenges in Russia and Japan• Weaker than expected trading in Industrial Analysis• Accelerated cost reduction programme• MIR acquisition; Omicron Joint Venture• Andor Technology has integrated well and is performingstrongly© Oxford Instruments 2015

Page 27

OutlookThe Business of Science®

• Slow start in the first two months• Expect to see a return to organic growth as recently
launched products and improved routes to market gaintraction• Expectations for current year unchanged• Nanotechnology and the convergence of the sciences willcontinue to yield long term structural growth© Oxford Instruments 2015

Page 28

DisclaimerThe Business of Science®

This presentation is prepared for and addressed to authorised persons within the meaning of the Financial Services andMarkets Act 2000 (FSMA). The information contained in this presentation is not for publication, distribution or reproduction,in whole or in part, to any persons outside the jurisdiction of this Act. The Company, its Directors, employees, agents oradvisers do not accept or assume responsibility to any other person to whom this presentation is shown or into whose
hands it may come and any such responsibility or liability is expressly disclaimed.
Statements contained in this presentation are based on the knowledge and information available to the Company's
Directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By
their nature, any statements concerning the risks and uncertainties facing the Company in this presentation involve
uncertainty since future events and circumstances can cause results and developments to differ materially from thoseanticipated. To the extent that this presentation contains any statement dealing with any time after the date of its
preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet tooccur. The Company undertakes no obligation to update these forward-looking statements.
The information in this presentation shall not constitute or be deemed to constitute any offer or invitation to invest in orotherwise deal in shares or other securities of Oxford Instruments plc.
All information in the presentation is the property of Oxford Instruments plc.

© Oxford Instruments 2015

Page 29