Oxford Instruments

Half Year Results Announcement
16th November 2010

Oxford Instruments 2010

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Oxford
Instruments
plc
OxfordInstruments

Contents• Highlights• Financial Review• Operational Review

Oxford Instruments 20092010

Jonathan Flint
Kevin Boyd
Jonathan Flint

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Instruments
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OxfordInstruments

Half-Year Overview• Order intake, excluding ITER, up 51.1%• Revenue up 22.0%• Adjusted PBT up £7.8m to £10.6m• Net debt reduced to £3.9m• Adjusted EPS up 13.3 pence to 17.4 pence• Interim Dividend increased by 5% to 2.52 pence

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Progress against 5 year plan
• Organic growth targets exceeded• Trading Profit margins exceeded 10%in first half
• Efficiency improvements firmly
embedded across the Group• All businesses profitable• R&D programmes on track• Pursuing acquisition targets
Oxford Instruments 20092010

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World-wide growth• All businesses experiencing strong demand• Research markets remain robust• Sustained improvement in industrialmarkets• Pricing levels maintained as price pressure
abates and demand increases• Significant growth in Asia

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China growth 52%

Oxford Instruments 2010

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Financial Review

Kevin Boyd
Group Finance Director

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Financial Highlights
2010/11
£m
141.3
113.2
48.8

2009/10
£m
133.9
92.8
39.1

Trading profit
Finance costs
Adjusted profit before tax

11.9(1.3)
10.6

Amortisation of acquired intangibles"Exceptionals"
Mark to MarketProfit before tax
TaxEarnings

Orders
Revenues
Gross profit

GrowthOrders- excl. ITER
Sales

5.5%
51.1%
22.0%

4.1(1.3)
2.8Profit
Adj. EPS

190.2%
324.4%

(1.8)
3.2
1.2
13.2
(3.0)
10.2

(2.2)
(0.4)
5.5
5.7
(1.6)
4.1

Margins
GM%
TM%

10/11
43.1%
10.5%

Net Debt(3.9)(29.6)

Adjusted EPS (pence)
EPS (pence)

17.4
20.7

4.1
8.3

Oxford Instruments 2010

09/10
42.1%
4.4%

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Segment Split
Nanotechnology

IndustrialTools

ProductsServiceTotal2010/11 2009/10

2010/11 2009/10

2010/11 2009/10

2010/11 2009/10

External revenue
Inter-segment
revenue
Sector revenue
Trading
profit/(loss)
Return on sales
Oxford Instruments 2010£m£m£m£m

£m

£m

£m

£m

49.0

43.3

42.3

30.8

21.9

18.7

113.2

92.8

0.2
49.2

0.2
43.5

1.0
43.3

0.1
30.9

21.9

18.7

5.8

2.1

2.0(0.7)

4.1

2.7

11.9

4.1

11.8%

4.8%

4.6%

-2.3%

18.7% 14.4%

10.5%

4.4%

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Sales Bridge
2.9

19.0(1.5)

113.2

120

92.8
100£m8060402002009/10

Oxford Instruments 2010

VolFxPrice

2010/11
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Profit Bridge
0.9

18.0

5.0(0.4)

(1.5)
(4.2)

16.0
14.0
8.0

£m

12.0

10.6

10.0
8.0
6.0
4.0

2.8

2.0
0.0

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Cash Flow
15.6

(0.2)

(2.1)

16.0
(1.6)

14.0

(0.5)

(3.5)

12.0
10.0

6.5

£m8.0

(1.2)

6.0
4.0

2.00.0Oxford Instruments 2010

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Orders
160.0

141.3
133.9

140.0127.2
113.2

120.0
100.0

102.4
92.8

93.5

92.8

£m

Sales

80.0

Orders60.3

Orderbook

60.0
40.0
20.0
H1 2009/10 ex ITER
Oxford Instruments 2010

H1 2009/10

H1 2010/11
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Possible Order Model?

Model of future demand

Indicative
Order
IntakeLong term average growth rate

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Pensions

Mar 10

Sep 10

157.5

164.6

200

150
10050
Assets0£m

Liabilities-50(35.1)(29.9)(192.6)(194.5)

Deficit-100-150-200-250

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Five Year Plan - Sales
120.0
100.0

£m80.060.0
40.0
20.00.0
H1

H2

H1

H2

H1

H2

H1

H2

H1

H2

H1

2005/06 2005/06 2006/07 2006/07 2007/08 2007/08 2008/09 2008/09 2009/10 2009/10 2010/11

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Five Year Plan - Profit
12.0
10.08.0£m6.0
4.0
2.00.0H1(2.0)

H2

H1

H2

H1

H2

H1

H2

H1

H2

H1

2005/06 2005/06 2006/07 2006/07 2007/08 2007/08 2008/09 2008/09 2009/10 2009/10 2010/11

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Operational Review

Jonathan Flint
Chief Executive

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Three Business Sectors
Nanotechnology
Tools

IndustrialProducts

ServiceNanoanalysis

Industrial Analysis

OI Service

NanoScience

Magnetic Resonance

Austin ScientificPlasma Technology

Oxford Instruments 2010

Superconducting
Wire

Service elements ofother two sectors

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Nanotechnology Tools

NanoAnalysis
Systems for materials analysis at the nano-scale• Continued strong performance• X-Max detector dominatesmarket• New applications

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Nanotechnology Tools

Plasma Technology
Tools for nanotechnology fabrication• Strong performance withrecord orders• High growth HBLED market• Increased demand
particularly from Asia
• Technology partnerships for
new applications• Investment in additional
facilities
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Nanotechnology Tools

NanoScience
Environments for nanotechnology research• Significantly improved performance• Dominates low temperature
research market• Introduction of further cryogen-freeproducts• Demand for consultancy services
increasing from quantum research

Oxford Instruments 2010

Image courtesy of D-Wave Systems Inc

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Industrial Products

Industrial Analysis
Tools for QC, Environmental and Compliance Testing• Strong performance• Sustained strengthening ofindustrial markets• Rising metal prices increasing
demand for OES and XRF
metals analysis tools• Hand-held soil analyser used
to identify hazardous
substances
Oxford Instruments 2010

Toxic waste spillage in Hungary September 2010

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Industrial Products

Magnetic Resonance
Benchtop NMR for industrial applications• Strong performance• Demand for seed analysers highin emerging nations• Strong growth in spin-finishmarkets• Launch of new product for rockcore sector, enabling key analysis
in more challenging environments

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Industrial ProductsSuperconducting Wireleading provider of superconductors for MRI and research• Continued strong performance• High demand from all major
customers driven by next
generation MRI scanners• First sale to ITER

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ServiceService• All revenue streams performing well with particular
growth coming from contract sales• MRI Service performing well in Japan, slower in the US• Significant improvement in business performance from
Austin Scientific due to high demand from photovoltaic
sectorOxford Instruments 2010

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Instruments
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Sustainability• Continued improvement in energy
efficiency across all sites• Investment in green technology• 11.2% reduction in energy consumed
as a percentage of sales

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Instruments
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Outlook• Record order book
• Demand likely to remain strong• Efficiency improvements and currency smoothing traditional
bias towards second half trading• Renewed focus on acquisition targets“We remain confident in the continued growth prospects of Oxford
Instruments and our ability to produce sustained shareholder value.”

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Instruments
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Disclaimer
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 orreproduction, in whole or in part, to any persons outside the jurisdiction of this Act. The Company, its Directors,
employees, agents or advisers do not accept or assume responsibility to any other person to whom this presentation isshown 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.

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