Oxford Instruments – 1959-2009 Celebrating 50 years of scientific excellence and innovation

Preliminary Results Announcement
June 9th 2009

© Oxford Instruments

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Agenda• Overview• Financial Summary• Operational Review & Outlook© Oxford Instruments

Jonathan Flint
Kevin Boyd
Jonathan Flint

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Overview• Turnover growth of 17%• Adjusted Profit Before Tax up 17%• Operating cash flow increased to £14.4m• Final dividend maintained at 6.0 pence• New products successfully launched• Acquisitions continue to perform well
• Business restructured to provide on-goingsavings of £11.4m a year

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A game of two halves …
• First six months of the year on track• From November 2008 some markets soften• Contingency plans implemented• Successful reshaping of the business© Oxford Instruments

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Our markets – status to date
• Sectors• Geography

 Research (general) Europe Research (pharma)

 USA

 Industrial (general) China Industrial (environmental)

 Russia/India
Latin America Other Asia

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Worldwide Restructuring
High Wycombe

Chicago closed
Scotts Valley
manufacturing

EBSD centre ofexcellence

Hobro closed

Shanghaimanufacturing• 15% reduction in workforce• Reshaping Molecular Biotools business• Movement of product lines to consolidate sites© Oxford Instruments

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Drive for innovation• Continued focus on R&D• New product launches• Continue to take market share• Recognition from peers as
Best Technology Company© Oxford Instruments

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Acquisitions/Disposals• Acquisitions contributing to plan
• Two Acquisitions in first half Technology & Devices International Link Analytical AB• Two Disposals
 Minority shareholding in Oxford Diffraction to Varian Inc
 Molecular Beam Epitaxy business to Riber SA© Oxford Instruments

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Our objective is to double the size of the business andimprove ROS by 10 percentage points over five years• Achieved growth targets for first three years• Second half year showed marked slowing of industrialmarkets• Decisive action on costs and efficiencies protected year
three performance• Business well-positioned to weather recession© Oxford Instruments

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Financial Review
Kevin Boyd
Group Finance Director© Oxford Instruments

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Financial Highlights
2008/09£'M

2007/08£'M

Revenues
Gross profit

206.5
90.7

176.5
73.2

Trading profit
Finance costs
Adjusted profit before tax
Amortisation of acquired intangibles"Exceptionals"
Mark to MarketProfit /(loss) before tax
TaxEarnings

13.1
(2.0)
11.1
(4.3)
(6.8)
(9.3)
(9.3)
2.6(6.7)

10.6(1.1)
9.5(2.9)
0.7(2.3)
5.0(2.3)
2.7

Adjusted EPS (pence)
EPS (pence)

14.8(13.9)

11.7
5.6

© Oxford Instruments

GrowthReportedConstantCurrency

GM%TM%
TM% ex hedging

17.0%
-2.1%

08/09
43.9%
6.3%
10.4%

07/08
41.5%
6.0%
6.1%

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Sales Bridge
240
10.4

(14.1)

33.7

220

206.5

200
176.5
£'M

180

160

140

120

100
2007/08© Oxford Instruments

FX

Acq/DisVol

2008/09

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Profit Bridge

3.6

180.4
161.6
142.7
11.1

12(0.9)£'M

10(5.8)

9.5

8
64
2020/
08
09tes
reum

teInlVoisdearh/D

ve

08

ix/M

cq
AOf
Ef/
07

Fx

20s

© Oxford Instruments

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Cash Flow25
20.3

1.4(3.4)(6.4)

20

15(2.6)(1.9)£M

10(4.1)(1.0)

5(2.5)

0-5-10(10.3)(10.5)

-15

WC
EB
IT DA

© Oxford Instruments

Capex

R&DInt,Tax

Pen&sioShanresDivi

denFXReAc
strq/Duc
isdturing

Movement

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Effect of Exchange Rate on Debt
2.5

35.0

30.0
21.5

20.0

US$/£Debt £'M

25.0

15.0Debt £M
US$1

10.0
0.5
5.0

-0Mar

© Oxford Instruments

Apr MayJunJul

Aug Sep

Oct

Nov Dec

JanFebMar

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Sales by Destination
2007/08

2008/09

RoW, 3%

RoW, 5%Asia, 30%

Asia, 29%

North America,
27%© Oxford Instruments

Europe, 37%

Europe, 39%

North Am erica,
31%

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Orders210.0

SalesOrders

Orderbookup 29% to£66m

200.0
190.0
180.0
£'M

170.0
160.0
150.0
140.0
130.0
120.0

© Oxford Instruments

2007/08

2008/09

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Annual Sales - Reported
220.0

Absolute Growth - 54%
Compound Growth - 16%

206.5

200.0
176.5
180.0

161.6

160.0
134.0

£'M
140.0

120.0

100.0

80.0
2005/06© Oxford Instruments

2006/07

2007/08

2008/09

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Annual Sales – Constant Currency
200.0

Absolute Growth - 37%
Compound Growth - 11%

187.9

183.6169.0

180.0

160.0
134.0
£'M 140.0

120.0

100.0

80.0
2005/06© Oxford Instruments

2006/07

2007/08

2008/09

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Annual Trading Profit
14.0

Absolute Growth - 198%
Compound Growth - 44%

13.1

10.6

12.0

10.0

8.3

8.0
£'M
6.0

4.4

4.0

2.0

0.0
2005/06© Oxford Instruments

2006/07

2007/08

2008/09

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Exceptionals£m
Disposal of ODL
Arkex impairment
Disposal of MBE
RestructuringTotal© Oxford Instruments

Profit2008/09
3.4
(0.5)
(1.0)
(8.7)
(6.8)

CashCash2008/09 2009/10
3.1
0.6
0.0
0.0
0.3
0.0
(2.5)
(3.0)
0.9

(2.4)

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Operational Review
Jonathan Flint
Chief Executive© Oxford Instruments

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Structure

Oxford Instruments plc

AnalyticalIndustrial
Analysis

Instruments for elemental
analysis, metals identification &coating thickness measurement

Superconductivity
NanoScience

Cryogenic systems
Superconducting
magnets

OST

Superconducting
wire and cables
MRI Service

Small X-ray tube manufacture

NanoAnalysis

Analytical systems
for electron microscopes
Process solutions to enable thePlasma
fabrication of nano structures
Technology for research, development andmanufacturing© Oxford Instruments

Benchtop NMR
analysers, low field
MRI and imaging
tools(Magnetic Resonance)

MolecularBiotools

AustinScientific

Cryogenic vacuum
pump systems

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Future Structure
Oxford Instruments plc
Nanotechnology© Oxford Instruments

Industrial
Industrial

ServiceThe Business of Science®

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Future Segmental Reporting
SectorCurrent
Businesses

Key Success Factors

Key Technologies

Nanotechnology

NanoAnalysis
NanoScience
Plasma TechnologyAdvanced Technology
Radical Innovation
Close technical contact withcustomers
Bespoke manufacture

Plasma etch & deposition
Cryogenics
X-ray detection
Superconductivity

Industrial
Products

Industrial Analysis
Superconducting Wire
Magnetic ResonanceCompetitive Differentiation
Low cost, medium volume
manufacturing
Rapid product introduction
Efficient production engineering

X-ray detection
X-ray sources
Optical emission spectroscopy

ServiceUS/Japan MRI Service
Austin Scientific
Servicing of Industrialand Nanotechnology
products

Revenue generating/innovative
service products
Total service commitment
24 hour support

Product Servicing
Customer Training
Rapid spares logistics© Oxford Instruments

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Industrial Analysis -Tools for Quality Control andCompliance Testing• New applications e.g. Strontium
pollution monitoring• Successful launch of new productfor Iron and Steel industry• Simplified and restructured

Corroded Air Conditioning system due to Chinese Dry Wall
– image courtesy of chinesedrywall.com© Oxford Instruments

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NanoAnalysis -Microanalysis systems for chemicaland structural materials analysis• Launch of unique X-MAX analyser
exceeded expectations• EBSD market continues to grow withsignificant potential in photovoltaic
applications• Strong orders for the new table topelectron microscope© Oxford Instruments

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Plasma Technology -Tools for specialist nanotechnology
applications

DLC artificial heart
Courtesy of Ventracor• Strong performance• New applications e.g. depositionof Diamond Like Carbon• Expanding markets for HBLEDs• Growth in photovoltaics© Oxford Instruments

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NanoScience -Superconducting magnets and cryogenic
systems• Accelerated adoption of ‘dry’technology• Three world first cryogenic
systems for fundamental
physics research• Restructured businessperforming well

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Superconducting Technology (OST)
Leading producer of superconducting wire

• Growth in market share for MRIwire• New orders for specialist highperforming wire
• ITER© Oxford Instruments

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Summary and Outlook• Growth to date in line with plan
• Industrial markets weak
• R&D markets resilient• Unlikely to see growth in the current year
• Continued progress on margin improvement• Well positioned to benefit from future strengthening of
the market© Oxford Instruments

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