PreliminaryResultsPresentation
to 31st March 2018

Ian Barkshire
Chief Executive

Gavin Hill
Group Finance Director
Oxford Instruments plc Preliminary Results presentation 2018

Agenda01: Highlights
02: Finance Review
03: Horizon Update
04: Operational Review
05: Summary and Outlook

Oxford Instruments plc Preliminary Results presentation 2018

2Highlights• Good progress with the early
implementation of Horizon• Strong growth in orders and orderbook• Transitioned to a more commercially • Strong growth in Materials &focused, market driven Group

Characterisation• Reported revenue in line with• Improved profitability in Service &previous year

Healthcare• Increased profitability and operating • H2 improvement in Research &margin reflecting currency benefits

Discovery after weak first half

• Significant reduction in net debt
Oxford Instruments plc Preliminary Results presentation 2018

3Finance Review

Gavin Hill

Oxford Instruments plc Preliminary Results presentation 2018

Income Statement£mRevenue
Adjusted operating profit
Net finance costs
Adjusted profit before tax

2017/18
296.9
46.5
(4.2)
42.3

2016/17
300.2
38.0
(6.5)
31.5

Amortisation of acquired intangibles
Impairment of goodwill and intangibles
Impairment of investment of associate
Business reorganisation items
Impairment of investment in associateMark-to-market of currency hedges(10.9)
1.7
(2.0)
3.1

(12.5)(36.7)
(8.0)
(1.7)
1.2

Profit/(loss) before tax from continuing operations

34.2(26.2)

Continuing adjusted basic earnings per share
Dividends per share

56.3p
13.3p

41.5p
13.0p

Reported
Change(1.1%)
22.4%

Constant
Currency
Change(0.1%)(5.5%)

34.3%

+0.6%

35.7%
2.3%

Oxford Instruments plc Preliminary Results presentation 20185Revenue by Sector£m
2016/17
Underlying movement
FX
2017/18
GrowthReported
Constant currency

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total*

105.7
13.9(1.5)
118.1

125.3
(12.1)
(1.1)
112.1

69.3
(2.0)
(0.5)
66.8

300.2
(0.2)
(3.1)
296.9

+11.7%+13.2%(10.5%)(9.7%)(3.6%)(2.9%)(1.1%)(0.1%)* Excluding inter-segment revenues

Oxford Instruments plc Preliminary Results presentation 20186

Revenue by Territory: £mGroup Revenue %Europe27%

North America
31%

Asia
40%

Row2%

121.2 119.6
100.492.973.8

201779.3

2018

2017

2018

2017

2018

4.8

5.1

2017

2018

Reported growth+7.5%(7.5%)(1.3%)+6.3%

Constant currency growth+4.3%(5.3%)

+1.2%

+8.3%

Orders1: reported growthOrders1: constant currency growth+12.2%
+8.9%

+3.5%
+5.5%

+5.4%
+7.5%

+191.3%+191.3%

1 Excluding US Healthcare
Oxford Instruments plc Preliminary Results presentation 20187Order Book: £m
59.0
52.8
49.8
40.8
34.2
25.0

2017

2018

2017

2018

2017

2018

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

Reported growth+36.8%+11.9%(18.2%)+5.0%

Constant currency growth+42.4%+15.2%(10.8%)+10.4%(7.8%)(2.4%)+14.0%+18.4%

Reported growth
Constant currency growth1
1 Excluding US Healthcare

Oxford Instruments plc Preliminary Results presentation 20188

Adjusted Operating Profit by Sector£m2016/17
Underlying movement
FX
2017/18
EBIT Margin
2016/172017/18

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

12.2
2.4
5.5
20.1

13.8
(5.0)
5.0
13.8

12.0
0.5
0.1
12.6

38.0
(2.1)
10.6
46.5

11.5%
17.0%

11.0%
12.3%

17.3%
18.9%

12.7%
15.7%

Oxford Instruments plc Preliminary Results presentation 20189Cash Flow

Cash/(Debt): £m-(20)Working Capital
Outflow: £13.2m (2017:£4.4m)(40)

Effective tax rate
23.9% (2017: 24.8%)

Pensions:
Deficit: £15.3m (2017:£25.1m)Annual contribution: £7.6m
Disposal (net cash flow):
Industrial Analysis: £71.2m
Property: £9.3m

Inv inAssociate

Dividend Other/FX
(net)

(60)

(80)

(100)
Working Capitalised
Capital Development
EBITDA

CapexInterest

(120)

(140)

Debtb/f
FY17

Cash conversion: 69% (2017: 90%)

TaxPensions

DisposalDebt
c/f
FY18
Oxford Instruments plc Preliminary Results presentation 201810

Currency Exposure
180
154.7

£m equivalent

120

60

55.8

48.6

44.0
33.0

32.5
18.8
5.3

0
(0.4)

(60)

(48.9)
Sterling

US Dollar
SalesEuroJapanese Yen

Other

Adjusted operating profit

Oxford Instruments plc Preliminary Results presentation 201811

Finance Summary• Growth in orders and order book at reported and constant currency• Adjusted operating margin up 300 basis points to 15.7%, reflecting currencybenefits• Continuing adjusted basic earnings per share up 35.7%• Net debt down to £19.7 million with net debt:EBITDA leverage at 0.3 times• Significant de-risking of investment strategy for the UK defined benefit
pension scheme• Based on current exchange rates, we expect a currency headwind of

approximately £3 million to operating profit in the 2018/19 financial year

Oxford Instruments plc Preliminary Results presentation 201812

Horizon Update &Operations Review

Ian Barkshire

Oxford Instruments plc Preliminary Results presentation 2018

Horizon Progress: Customer Centric Approach• Good progress in early implementation phase of Horizon–Firmly embedded across the Group with positive engagement–Starting to see tangible benefits• Transitioned to a more focused, market driven-Group–Broad range of applications and industrial segments• Key enabling technologies underpinning shift to a greener

economy, digital connectivity and advances in materials and life
science• Creating more value for existing customers and expanding ouraddressable markets through application specific solutions

Oxford Instruments plc Preliminary Results presentation 201814

Solutions and Application Focus

Oxford Instruments plc Preliminary Results presentation 201815

Solutions and Application Focus

Oxford Instruments plc Preliminary Results presentation 201816

Application Solutions
Battery Technology

Automotive Industry• CypherES electrochemistry cell • AZtecClean• Instrumentation upgrade,• Tailored software upgrade andbespoke data analytics

bespoke data analytics• Enables characterisation in real- • Identifies contamination and its
time, real-life operating
conditions

source in supply chain

Oxford Instruments plc Preliminary Results presentation 201817

Horizon Progress: Developing & Embedding
Capabilities• Transformed leadership team at operational level–50% of senior managers recruited over the last two years• Embedding best practice across sales, service and operations toaugment excellence in technology–Overlay sharp commercial focus–Solution sales approach–Lean approach to operational excellence• Exploiting synergies to create value–Leverage scale to accelerate growth and improve margins–£1.5 million central overhead efficiencies partially offsetting previous
contribution from Industrial Analysis
Oxford Instruments plc Preliminary Results presentation 201818

End Market Segments: RevenueMaterials &Characterisation

Group*2%4%7%
13%

20%

4%

Research & Discovery

29%

30%

Academic: 55%

Academic: 51%

Commercial: 45%

Commercial: 49%

6%

3%
3%

Academic: 73%

40%

Commercial: 27%
46%

6%

20%

9%

1%
29%

* Includes revenue from Service & Healthcare

10%
16%

Oxford Instruments plc Preliminary Results presentation 201819

Materials & Characterisation
NanoAnalysis; Asylum Research; Plasma Technology
Enabling the fabrication and characterisation of materials and devices down to the atomicscale(40% of Group revenue; 49% commercial funding)• Double digit order, revenue and profit growth acrossthe sector• Strong growth across US, Europe and Asia
• Focus on applied R&D and advanced manufacturing

Solar cell crystal
grain structure• New products and solutions driving strong
performance• Broad market and customer base
Semiconductor
integrated circuit
Oxford Instruments plc Preliminary Results presentation 201820

Materials & Characterisation
NanoAnalysis• Symmetry driving growth in advancedmaterials• Ultim delivering unprecedented

performance for semiconductor customers
EDS map of a bulk Smartphone processor
cross section
Smartphone
showing TEM like spatial resolution
in the SEMprocessor

Asylum Research• New advanced products including Cypher
EC and Cypher VRS• Repositioned entry level portfolio
Live virus

Oxford Instruments plc Preliminary Results presentation 201821

Materials & Characterisation
Plasma Technology• Core expertise in compound
semiconductors• Enabling more compact, higher speed,larger capacity and higher energy efficientdevices• Market drivers include big data, IoT, AI andCompound
semiconductor wafer

autonomous vehicles• Growth in academic and specialist device
production markets

Big data and IoT

Oxford Instruments plc Preliminary Results presentation 201822

Research & Discovery
Andor Technology; X-ray Technology; NanoScience & Magnetic Resonance; ScientaOmicron
Advanced solutions that create unique environments and enable measurements down to
the molecular and atomic level(38% of Group revenue; 73% academic funding)• Strong second half more than offset by weaker firsthalf performance• Orders broadly in line with previous year, increasedorder book

• Second half improvement in optical microscopy

Florescenceimaging• NanoScience progressing on improvement plan
• Significant contribution from healthcare and life
science; quantum technologies increasing

QuantumTechnologies

Oxford Instruments plc Preliminary Results presentation 201823

Research & Discovery
Andor Technology• Order growth supported by new product launches;revenue impacted by order phasing• Increased demand for image visualisation andanalysis software• Growth from high performing scientific cameras– Astronomy, life science and quantum imaging– World’s first super-resolution camera

Neuron structure,brain sample

X-ray Technology• Weaker overall performance, improvement
plan in place• Growth in healthcare applications offset by
decline in industrial segments

Internal cellstructure

Oxford Instruments plc Preliminary Results presentation 201824

Research & Discovery
NanoScience & Magnetic Resonance• Complexity of order book negatively impacted
performance in the year

• Improvement plan under new leadership team• Growth in customised high magnetic systems andcryogenic platforms• Growth in benchtop NMR solutions
ScientaOmicron (JV)

• Improved performance, divestment of non-corebusiness

Oxford Instruments plc Preliminary Results presentation 201825

Service & Healthcare
OI Healthcare; OiService
Provides customer service and support for our own products and the service, sale andrental of third party healthcare imaging systems(22% of Group revenue)• Improved profitability and margin• Revenue and order growth offset by reduction in OIHealthcare

OI Healthcare• Strategic progress• Improved second half performance
OiService

SoftwareUpdates

HardwareUpdates• Increased demand for services relating to own products• Broader range of products and services and increased aftermarket revenues

Oxford Instruments plc Preliminary Results presentation 201826

Summary
Good progress with Horizon, transitioning to a more commercially-focused Group
Materials & Characterisation

Research & Discovery

Service & Healthcare• Performing strongly in• Improved second half• OiService: focus on

attractive markets• We continue to invest in new
product development toimprove and expand ourrange of products• Increasing addressable

market through solutions

performance• Recovery in opticalincreasing after-market
revenue by providing abroader range of support
services• Under performance in• OI Healthcare: strategic shift

microscopy systems, with likefor like order growth in
Andor

NanoScience and X-ray
Technology depressed sector
results• Addressing the challenges

towards higher proportion ofservice revenue driving
greater visibility of revenue
and improved returnsthrough structural change
and business simplification• Self-help actions, combinedwith positive end markets,
support improved financial
performance

Oxford Instruments plc Preliminary Results presentation 201827

Outlook• Our chosen end markets remain attractive, supported by commercial andgovernment investment• Our growing order book, customer application focus and drive for
operational efficiencies provide confidence for the year ahead• We expect to see an improvement in performance on a reported basis

after allowing for the impact of an anticipated currency headwind, basedon current exchange rates

Oxford Instruments plc Preliminary Results presentation 201828

Questions

Oxford Instruments plc Preliminary Results presentation 201829

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 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 those anticipated. To theextent that this presentation contains any statement dealing with any time after the date of its preparation such statement ismerely 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 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 plc Preliminary Results presentation 2018