Half Year Results Announcement
12 November 2013

The Business of Science®

Jonathan Flint – Chief Executive
Kevin Boyd – Group Finance Director© Oxford Instruments 2013

AgendaThe Business of Science®

• Highlights• Financial Review• Operational Review• Strategy• Outlook© Oxford Instruments 2013

Highlights
The Business of Science®

• Marked improvement in second quartertrading• Order run rate ahead in Europe and Asia
• Improving trend in US markets• Increased R&D spend• Acquisition programme on track© Oxford Instruments 2013

The Business of Science®

Financial Review
Kevin Boyd

© Oxford Instruments 2013

Financial Summary
The Business of Science®

Orders (£m)
Revenues (£m)
Gross margin (%)
Adjusted operating profit (£m)*
Return on sales (%)
Adjusted profit before tax (£m)*
Adjusted EPS (pence)*
Dividend (pence)
Net Cash (£m)

2013/14
168.0
166.3
45.0%
22.0
13.2%
20.6
28.6
3.36
32.2

2012/13
169.8
170.8
44.6%
23.6
13.8%
22.5
33.0
3.05
37.1

*Adjusted numbers are stated to give a better understanding of the underlying business. Details of adjusting items can be found inNote 2 of the Half Year Report© Oxford Instruments 2013

Change-1.1%-2.6%+40bps
-6.8%-60bps-8.4%-13.3%+10.2%(4.9)

Sector Split
The Business of Science®

NanoTechnology
Tools

£m

2013/14

Industrial
ProductsService

Total*

2012/132013/142012/132013/142012/132013/142012/13

Sector revenue

77.1

80.9

58.0

61.5

32.3

29.3

166.3 170.8

Operating profit

7.4

10.3

8.1

7.5

6.5

5.8

22.0

Return on sales

9.6% 12.7% 14.0% 12.2% 20.1% 19.8% 13.2% 13.8%*excluding inter-sector revenue© Oxford Instruments 201323.6

Orders by Segment by Quarter (£m)
The Business of Science®

90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0.02013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014
Q1

Q2

Nanotechnology Tools© Oxford Instruments 2013

Q1

Q2

Industrial Products

Q1

Q2
ServiceQ1

Q2
Group

Sales Bridge
The Business of Science®

170.8

(7.6)
(6.0)

180.0

7.3

1.8

166.3

160.0
140.0

£m

120.0
100.0
80.0
60.0
40.0
20.0
2012/13© Oxford Instruments 2013

VolITER/GTAT

FxM&A

2013/14

Sales by Destination
The Business of Science®

H1 2013/14

H1 2012/13

3%

2%

33%

36%Europe© Oxford Instruments 201328%
N America
Asia

38%

33%

27%
RoW

EuropeN America

Asia

RoWProfit Bridge
The Business of Science®

25.0

22.5

(3.4)
5.2
(2.4)

20.0

(1.5)
(0.3)

£m

15.0

10.0

5.00.0© Oxford Instruments 2013

0.5

20.6

Cash
The Business of Science®

26.1

70.0

(20.8)

60.0
(2.4)

50.0
39.2

£m

40.0
30.0
20.0
10.0
0.0

© Oxford Instruments 2013

(2.4)

(2.4)

(3.0)

(0.4)

(1.7)

32.2

Revenue & Margin Progression
The Business of Science®

£m200.0

16.0%

180.0

Revenue
160.0

14.0%

EBIT%12.0%

Revenue CAGR 13.4%

140.0

10.0%

120.0
8.0%
100.0
6.0%
80.0
4.0%

60.0

2.0%

40.0
20.0

0.0%

0.0

-2.0%
H1

H2

H1

H2

H1

H2

H1

H2

H1

H2

H1

H2

H1

H2

H1

H2

H1

2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014

© Oxford Instruments 2013

The Business of Science®

Operational Review
Jonathan Flint© Oxford Instruments 2013

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• NanoAnalysis• Industrial Analysis• RMG Technology• OiService - own products• Omicron NanoScience• Industrial Components• Plasma Technology© Oxford Instruments 2013

• OiService CT & MR

RMG Technology
The Business of Science®

Technology

Laser Induced Breakdown
Spectroscopy (LIBS)

Acquisition strategy

Bolt-on for Industrial Analysis

ProductUltra fast, lightweight hand-held
metal analyser

MarketScrap and Recycling

Growth strategy© Oxford Instruments 2013

• Integrate into Industrial Analysis
for operational efficiency• Expand sales and distribution
network for global reach• Focus on developing next
generation productNanoTechnology Tools
High-performance technology products for research and industry

The Business of Science®

• Large scale nanofabrication•••

system delivered to Jülich
University
Centre of Excellence for two
dimensional materials
established
New microanalysis detectors
and software launched foranalysis of photovoltaic cells
Asylum Research extends
market reach and contributes
to growth© Oxford Instruments 2013

Atomic Force Microscope Image of DNA

Industrial Products
Analytical instruments and high technology components

The Business of Science®

• PMI-MASTER Smart: world’s first portable•© Oxford Instruments 2013

optical emission spectrometer launchedworldwide for metals analysis, particularly foruse in hard to reach, inaccessible locations
PULSAR: magnetic resonance analyser for use
in food fraud detectionServiceService, support, training, refurb, consumables, accessories

The Business of Science®

• Growing installed base
• Increased orders and sales for service contracts and••sparesInvestment in international service capability
New opportunities for CT & MR Service in US medical andveterinary markets© Oxford Instruments 2013

14 Cubed Update
The Business of Science®

ObjectiveAchieve a 14% Return on Sales by April 2014

Status• 14% achieved a year early• First half of FY13/14 delivered 13.2%

ObjectiveAchieve a 14% Revenue CAGR 2011-14

Status• 15.6% CAGR achieved 2011-13• CAGR to date 13.7%© Oxford Instruments 2013

Strategy
The Business of Science®

Nanotechnology
Tools

Adjacent
MarketNanoMaterials

TechniqueCompound Semi
DSE

XRF
OES
MRI
Superconductors
Cryogenics
Magnets
EDS
WDS
EBSD
AFM

Technique X
Technique Yetc

© Oxford Instruments 2013

AcademicResearchAppliedResearchLow Volume
Industrial

In-line/AutoIndustrial

ServiceAftermarket

Plasma Technology

Industrial
ProductsOION
NanoAnalysis
AsylumService

NanoFabrication

Area

Industrial Products

Strategy
The Business of Science®

Nanotechnology
Tools

Adjacent
MarketNanoMaterials

TechniqueCompound Semi
DSE

XRF
OES/LIBSMRISuperconductors
Cryogenics
Magnets
EDS
WDS
EBSD
AFM

Technique X
Technique Yetc

© Oxford Instruments 2013

AcademicResearch

AppliedResearch

Low Volume
Industrial

In-line/AutoIndustrial

Service
Aftermarket

Plasma Technology

Industrial
ProductsOION
NanoAnalysis
AsylumService

NanoFabrication

Area

Industrial Products

Strategy – Next Steps …
The Business of Science®

Nanotechnology
Tools

NanoMaterialsNano-Bio

TechniqueCompound Semi
DSE

XRF
OES/LIBSMRISuperconductors
Cryogenics
Magnets
EDS
WDS
EBSD
AFM
Technique 1
Technique 2
Technique 3
Technique 4© Oxford Instruments 2013

AcademicResearch

AppliedResearch

Low Volume
Industrial

ServiceIn-line/Auto
Aftermarket
Industrial

Plasma Technology

Industrial
ProductsOION
NanoAnalysis

Service

NanoFabrication

Area

Industrial ProductsAndor Opportunity
The Business of Science®

Nanotechnology
Tools

Nano-Bio

TechniqueCompound Semi
DSE

XRF
OES/LIBSMRISuperconductors
Cryogenics
Magnets
EDS
WDS
EBSD
AFM

Confocal Microscopy
Raman
Fluorescence
Microscopy
Cytometry© Oxford Instruments 2013AcademicResearch

AppliedResearch

Low Volume
Industrial

In-line/AutoIndustrial

ServiceAftermarket

Plasma Technology

Industrial
ProductsOION
NanoAnalysis
Andor

Service

NanoMaterials

NanoFabrication

Area

Industrial ProductsAndorThe Business of Science®

• Short Term
• Research market benefits
OmicronNanoScience• Grow Asia market• Grow optical systems
Optistatbusiness

Industrial
Products

Photonics• Longer Term
• Grow system and software
capability• Combined products for NanoBio and Nano-Material market• Develop technology forindustrial applications© Oxford Instruments 2013

OpticalEmission
Spectroscopy

AndorHybridHybridElectron/AFM/
Optical
OpticalMicroscopy Microscopy

NanoAnalysis

Outlook
The Business of Science®

• Order run rate ahead in Europe and Asia
• Tentative recovery in US market• Strong new product pipeline• Q2 momentum encouraging for H2• Acquisition programme on track• Strategy progression into Nano-Bio supports
long term growth© Oxford Instruments 2013

Disclaimer
The Business of Science®

This presentation is prepared for and addressed to authorised persons within the meaning of theFinancial Services and Markets Act 2000 (FSMA). The information contained in this presentation is notfor publication, distribution or reproduction, in whole or in part, to any persons outside the jurisdiction ofthis Act. The Company, its Directors, employees, agents or advisers do not accept or assume
responsibility to any other person to whom this presentation is shown or into whose hands it may comeand any such responsibility or liability is expressly disclaimed.
Statements contained in this presentation are based on the knowledge and information available to theCompany's Directors at the date it was prepared and therefore the facts stated and views expressed maychange after that date. By their nature, any statements concerning the risks and uncertainties facing theCompany in this presentation involve uncertainty since future events and circumstances can cause
results and developments to differ materially from those anticipated. 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 to occur. TheCompany 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 or otherwise deal in shares or other securities of Oxford Instruments plc.
All information in the presentation is the property of Oxford Instruments plc.

© Oxford Instruments 2013