Preliminary resultspresentation
to 31 March 2021

Ian Barkshire
Chief Executive
Gavin Hill
Group Finance Director

AgendaHighlights
Finance Review
Horizon Progress
Sustainability Position & Covid Update
Operational Review
Summary and Outlook

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Highlights• Robust performance reflects resilience of business model and strong
position in diverse, attractive end markets• Strong order growth across academic and commercial customers

reflecting buoyant semiconductor, quantum and advanced materials
markets• Horizon initiatives support significant growth in profit & margin• Revenue growth supported by strong H2 momentum• Strengthened orderbook provides increased visibility for the year ahead• Maintained investment in R&D supporting future growth• Increased net cash and strengthened balance sheet• Underlying long-term market growth drivers remain robust
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Finance Review

Gavin Hill

Oxford Instruments plc Preliminary Results presentation 2021

Income Statement£m
2020/21 2019/20
Revenue
318.5
317.4
Adjusted operating profit
56.7
50.5
Amortisation of acquired intangibles
(8.4)
(8.7)
Non-recurring items
(1.7)
(0.6)
Mark-to-market movement of currency hedges
6.4
(1.4)
Statutory operating profit
53.0
39.8
Net finance costs
(0.8)
(1.0)
Adjusted profit before taxation
55.9
49.5
Statutory profit before taxation
52.2
38.8
Adjusted effective tax rate

19.3%

18.8%

Continuing adjusted basic earnings per share
Dividend per share

78.6p
17.0p

70.2p
-

Reported
Change+0.3%+12.3%

Constant
Currency
Change+1.7%+13.3%+33.2%+12.9%+34.5%+12.0%

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Revenue by Sector
Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

Revenue1 2019/20
Constant currency
growth/(decline)
Revenue at constantcurrency: 2020/21
Foreign exchange
Revenue: 2020/21

145.8

117.8

53.8

317.4

4.7

(2.4)

3.2

5.5

150.5
(1.9)
148.6

115.4
(2.0)
113.4

57.0
(0.5)
56.5

322.9
(4.4)
318.5

Revenue growth: reported
Revenue growth: constantcurrency+1.9%(3.7%)

+5.0%

+0.3%

+3.2%

(2.0%)

+5.9%

+1.7%

£m

1 from continuing operations

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Revenue by Territory: £mGroup Revenue %EuropeNorth America

Asia

RoW

27%

24%

47%

2%

150.2
136.6

84.9

87.2

89.5
76.7

6.4

2019/20 2020/21

4.4

2019/20 2020/21

2019/20 2020/21

2019/20 2020/21

Reported growth

2.7%(14.3%)

10.0%(31.2%)

Constant currency growth

1.2%(10.8%)

11.9%(31.3%)

Orders: reported growthOrders: constant currency growth(3.7%)(4.9%)

+3.0%
+6.9%

+12.0%+13.7%(5.6%)(1.9%)

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Order Book: £m

96.5

96.1

74.7

53.4

2019/20

2020/212019/20

2020/21

25.1

27.4

2019/20

2020/21

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

Reported growth+39.9%(0.4%)+9.2%+13.2%

Constant currency growth+47.2%

+1.6%

17.5%

+17.8%

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Adjusted Operating Profit by Sector£mAdjusted operating profit1:
2019/20
Constant currency
growth/(decline)
Adjusted operating profit:
constant currency: 2020/21
Foreign exchange
Adjusted operating profit:
2020/21
Adjusted margin2: 2019/20
Adjusted margin2: 2020/21
Adjusted margin2 (constantcurrency): 2020/21

Materials &Characterisation

Research & Service &Discovery Healthcare

Total

21.0

14.5

15.0

50.5

(0.4)

4.9

2.2

6.7

20.6
(0.3)

19.4
0.1

17.2
(0.3)

57.2
(0.5)

20.3

19.5

16.9

56.7

14.4%
13.7%

12.3%
17.2%

27.9%
29.9%

15.9%
17.8%

13.7%

16.8%

30.2%

17.7%

1 From continuing operations

2 Adjusted margin is calculated as adjusted operating profit divided by revenue. Adjusted margin at constant currency is defined as adjusted operating profit atconstant currency divided by revenue at constant currency

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Cash Flow(£2.7m)(£0.9m)Pensions:
Accounting asset: £16.3m(31 March 2020: £30.7m)(£4.0m)(£2.8m)(£1.6m)(£6.3m)Working Capital
Outflow: £2.1m (2020: inflow of £10.1m)£97.6m(£15.5m)£-m(£1.9m)Effective tax rate
19.3% (2020: 18.8%)£67.5m£65.8mCapex
Capex in 2021/22 to include c.£20m of
construction costs for the new Plasma Technology
facility, with c.£12m in 2022/23

Cash conversion: 101% (2020: 124%)

Net cash
31 March 20 EBITDA

Working
CapitalCapitalised
Development

Capex

Lease
Liabilities

Interest

Tax

Pensions

Dividend

FX/OtherNet cash
31 March 21

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Currency Exposure
160

145.0

120

£m equivalent

80

64.1

61.5

68.4
36.8

40

37.9
21.9
4.8

0

2.7

0.9 0.5

(40)

(80)

(69.3)
Sterling

US Dollar

Revenue

Euro

Japanese Yen

Chinese Renminbi

Other

Adjusted operating profit

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FX Sensitivity• Adverse currency impact in Full Year 2020/21: AOP: (£0.5m)• Estimated Full Year 2021/22 currency impact– Assuming current hedges and no change from current rates, currency
sensitivity against FY 2020/21: Revenue: (£18.5m); AOP: (£2.5m)• Estimated Full Year 2022/23 currency impact– Assuming no change from current rates, currency sensitivity against
2021/22: Revenue: £-m; AOP: (£6.4m)– This does not affect the underlying growth of the Group and is prior to
mitigating actions• Uncertain volume and timing of shipments and acceptances,currency mix and FX volatility, may significantly affect full year
currency impact outcomes

Current rates – GBP:USD 1.42; GBP:EUR 1.17; GBP:JPY 155
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Finance Summary• Strong growth in orders and order book
• Adjusted operating margin lifted to 17.8% with good improvement
across the portfolio, complemented by strong operating cash
conversion of 101%.

• Additional pension contribution of £8.1m. Further de-risking of thescheme to achieve planned self-sufficiency early in 2026.

• Adjusted EPS growth of 12.0% and total dividend for the year of
17.0 pence• Net cash of £97.6m; strong balance sheet supports future growththrough organic investment and acquisition opportunities

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Operations Review

Ian Barkshire

Oxford Instruments plc Preliminary Results presentation 2021

Horizon Strategy Progress• Horizon has provided resilience, enabling growth and improved
profitability through the pandemic• Tangible financial gains across the Group through:– Optimised sales and marketing approach, further exploiting ourmarket intimacy– Improved commercial processes– Progress from operational excellence and service programmes• Acceleration of our digital and service transformations• Maintained strategic progress, including 9% R&D investment• Continued investment to drive future growthMarketIntimacy

Innovation &Product
Development

Customer
SupportOperational
Excellence

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Shaping a sustainable future• Positively influencing and shaping a sustainable future
is at the heart of our values, culture and purpose• Through our purpose we focus on enabling:––––

A greener economy
Increased connectivity
Improved health
Leaps in scientific understanding• Continued progress executing oursustainability initiatives– Aligned with three UN Sustainable
Development Goals– Significant reduction in environmental footprint– Enhanced employee engagement and diversity& inclusion programme
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Covid Update• Prioritised health and wellbeing of employees and supporting
customers and strategic partners• Hybrid workplace model maintained business continuity• Evolved working practices delivered:– Improved quarter on quarter operational output– Increased synergies across the Group– Enhanced engagement with employees & customers• Agility and commitment of employees underpinned our resilience

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Group Performance
Materials &Characterisation

Academic: 55%
Commercial: 45%

Research & Discovery

Service & Healthcare• Good constant currency order growth of 6.7% to £359m acrossboth commercial and academic customers• Revenue growth with momentum building through the year
• Double digit growth in orderbook• Double digit profit growth and strong margin enhancement
through Horizon initiatives• Diverse end markets and exposure to full technology cycle
support business resilience
Fundamental
Research

Providing solutions tothose exploring new
frontiers down to thenano & molecular level
Physical &Life Sciences

Innovation
approachApplied R&D

Product
application
insight

Our key enabling
technologies and solutions
facilitate the developmentof more advanced
products

Marketinsight

High Tech
Manufacturing

Providing products to
support today’s
manufacturing challenges& increase productivity

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Group Performance – End Markets• Broad and diverse range of attractive end

markets with robust long term growth drivers• Order growth supported by buoyant

semiconductor (+17%), quantum (+16%)
and advanced materials (+8%) markets• Research & Fundamental Science (-24%)
subdued

8%
23%

22%

% of
Revenue

8%

28%
11%

• Covid-related disruption differed by market
segments and regions subduing revenue• Order growth in Asia and North America
offset by softness in Europe• Market intimacy supported growth andexpansion into new markets

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47% Group revenue
Academic: 44%
Commercial: 56%

Materials & Characterisation

Asylum Research; Magnetic Resonance; NanoAnalysis; Plasma Technology
Enabling the fabrication and characterisation of materials and devices down to the atomic scale• Double digit order growth from both academic

6%

and commercial customers• Strong order growth in Semiconductors,

36%

Advanced Materials, Quantum & Lifescience% of
Revenue– Growth in Asia & North America; Europe in line

• Covid disruption subdued revenue growth;• Significant order book growth of 40%• Margin held back by product mix & investment

Semiconductor
Deposition System

Benchtop NMR

Atomic Force Microscope

48%

8%
2%

Material Structural Analyser

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Materials & Characterisation
Growth Examples
Semiconductor & Communications

Global Market Drivers• Buoyant compound semiconductor market

Power Electronics

Connectivity

Communications- strong growth in etch and deposition
systems• Investment in new facility• Strong semiconductor chip market driving
growth for imaging and analysis systems

Semiconductor
Chip Analysis

Optical Communications
DeviceEnergy & Environment• Strong growth in battery solutions morethan offset by other subdued markets• Sustainable long-term growth drivers

Battery Research

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Materials & Characterisation
Growth Examples
Advanced Materials• Continued demand for lighter, stronger,higher performing materials - building
blocks of modern society

Utilisation of Advanced Materials• Strong order growth across diverse

applications including steel, super alloys
and polymers offset reductions into
automotive and aerospace

Flexible Display & Polymer Microstructure

Healthcare & Lifescience• Increased market intimacy and tailoredproducts driving growth into pharma andlife science applications

Pharmaceuticals andMedical Implants

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35% Group revenue
Academic: 74%
Commercial: 26%

Research & Discovery
Andor Technology; NanoScience; X-Ray Technology

Advanced solutions that create unique environments and enable measurements down to the molecularand atomic level• Significant covid disruption in first half more than21%

offset second half order & revenue growth– Growth from academia and reduction incommercial customers

9%• Order growth in Quantum, Advanced Materials
and Semiconductors, in-line Lifescience but
subdued Fundamental Science market

39%

% of
Revenue

1%
26%

4%

• Sustainable uplift in profitability and margin
through realisation of Horizon initiatives

CameraX-ray Tube

Proteox
Cryocooler

Dragonfly 200

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Research & Discovery
Growth Examples
Global Market Drivers

Healthcare & Lifescience• Long term fundamental market
drivers remain robust

Cell Biology

Personalised
Medicine

Neuroscience

Immunology• Year on year second half growth
offset by first half disruption• Uplift in covid diagnostics, virus mutations,immune system response

Covid Testing• Growth into cancer research; subdued

central research facilities & cell biology

Research & Fundamental Sciences• Research institute and funding body disruption
significantly impacted orders & revenue

Functional Cellular Imaging

Analysis andVisualisation Software
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Research & Discovery
Growth Examples
Global Market Drivers

Quantum Technology• Strong order & revenue growth astimeline for practical applications
accelerates

SecureCommunication

Quantum
Sensors

Quantum
Imaging

Quantum
Computing• Growth supported by governments &commercial customers• Quantum advantage now possible
with hugely disruptive potential• Good progress in consortium to build

Commercial Cloud-based Quantum Computer

UK commercial quantum computer

Advanced Materials• Strong order and revenue growth driven by
fundamental material research

Graphene

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Service & Healthcare

18% Group revenue

Provides customer service and support for our own products and the service and support of third party
MRI scanners in Japan• Increased demand and tailored product offerings
supported order and revenue growth• Improved profitability and enhanced margins• Accelerated customer service transformation –Remote Support

higher value products, improved capacity andenhanced service delivery• Proactively supported customers through covid
with digital and remote services• Service growth remains central to ongoing
implementation of Horizon
Repair,
Maintenance &Consumables

RemoteDiagnostics &SupportYield
Management &Application
SoftwareAugmented Reality
SupportTraining &Consultancy

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Summary & Outlook• Strong order growth, revenue impacted by covid disruptions• Enhanced profit and margins through Horizon initiatives• Performance reflects agility and engagement of employees• Robust performance, strong order book and diversified end markets
demonstrate resilience of business model• Well positioned to deliver good progress in year despite currency
headwinds

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Thank you

Disclaimer

This presentation is prepared for and addressed to authorised persons within the meaning of the Financial Services and Markets 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 thejurisdiction of this Act. The Company, its Directors, employees, agents or advisers do not accept or assume responsibility to any other person towhom 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 anduncertainties facing the Company in this presentation involve uncertainty since future events and circumstances can cause results anddevelopments 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. 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 or otherwise deal in shares orother securities of Oxford Instruments plc.
All information in the presentation is the property of Oxford Instruments plc.

Oxford Instruments plc Preliminary Results presentation 2021

Positioned in diverse, attractive end markets with clear drivers
Well positioned in globally niche markets with long-term growth drivers where we canmaintain leading positions:
Semiconductor & Communications: The push for more power-efficient devices, increased connectivity and theincreased demand for semiconductor chips across consumer electronics is creating opportunities for growth.
Advanced Materials: Where there is increased investment into new materials to enable higher and often
disruptive performance, as well as demand for more sustainable use of valuable and finite natural resources.
Energy & Environment: Revitalisation and global recognition of dramatic changes to energy requirements andthe global urgency regarding carbon emissions are accelerating the move to new energy and environmental
solutions.
Healthcare & Lifescience: Increasing and aging populations are driving the need for more affordable andeffective therapies and treatments, with the more detailed understanding regarding fundamental diseasemechanisms enabling a new paradigm in the speed and efficacy of drug development.
Quantum Technology: Increased national programmes and associated funding as researchers continue tomake significant advances with quantum technology and the promise of practical commercial quantum
technology.
Research & Fundamental Science: The rates of change in technology development is driving governments toincrease their investment in fundamental research to equip their citizens with new technologies and establish
technical leadership for their country.
Oxford Instruments plc Preliminary Results presentation 2021