Oxford Instruments

Preliminary Results Announcement
June 15th 2010

Oxford Instruments 2010

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Agenda• Overview• Financial Summary• Operational Review & Outlook

Oxford Instruments 2010

Jonathan Flint
Kevin Boyd
Jonathan Flint

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Highlights
••
•
•
••
•
•

Turnover increased to £211.5m
Trading Profit up 12%
Adjusted Earnings Per Share up 20%
Debt reduced from £28.3m to £10.4m
Record order-intake of £250.0m
Final dividend maintained at 6.0 pence
Good growth in research markets
Recovery in industrial markets

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OverviewIssue

What we
expected

What happened

Cost Base

Reduced following
restructuring

Achieved

IndustrialRevenues

Show recovery
from low baseSlow recovery in
H1. Faster in H2

Stimulus Funds

Moderate impact

Moderate impact

ResearchRevenues

SteadyGood increase

Selling Prices

Some pricepressure

Pronounced insome sectors

Salary andCommodity Costs

FlatFlat

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HBLED Market Forecast

HB LED Market Forecast (Strategies Unlimited)
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Our objective is to double the size of the business andimprove ROS by 10 percentage points•••••Achieved organic growth targets for first four years
Acquisition programme suspended during recession
Revenue and profits growth despite recessionary pressures
Successful restructuring and efficiency programme
All business units now profitable

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Diverse End Markets
Life Sciences
17%

Research &Academia
44%

Environment
17%
Energy3%

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Metals/Construction
12%

Semicon/IT
6%

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Diverse Geographies
2009/10

2008/09

RoW5%

RoW
7%
Europe
36%

Asia
33%

North
America26%

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Europe
39%

Asia
29%

North
America25%

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Financial Review

Kevin Boyd
Group Finance Director

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Financial Highlights

2009/10
£m
250.0
211.5
90.6

2008/09
£m
204.2
206.5
90.7

Trading profit
Finance costs

14.7
(2.8)

13.1
(2.0)

EPS

20.3%

Adjusted profit before tax

11.9

11.1

Margins

09/10

08/09

Amortisation of acquired intangibles"Exceptionals"
Mark to Market
Profit /(loss) before tax
TaxEarnings

(4.1)
(0.4)
10.7
18.1
(4.8)
13.3

(4.3)
(6.8)
(9.3)
(9.3)
2.6(6.7)

GM%
TM%

42.8%
7.0%

43.9%
6.3%

Net Debt(10.4)(28.3)

17.8
27.2

14.8
(13.9)

Orders
Revenues
Gross profit

Adjusted EPS (pence)
EPS 2010(pence)
Oxford Instruments

GrowthOrders
22.4%
Sales
2.4%
Profit12.2%

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Segment Split
Nanotechnology
Tools
2009/10 2008/09£'m£'mIndustrialProducts
2009/10 2008/09£'m£'mService2009/10 2008/09£'m£'mExternal revenue
Inter-segment revenue
Sector revenue

101.5
0.3
101.8

93.8
0.4
94.2

71.0
1.1
72.1

75.1
0.4
75.5

39.0

Trading profit/(loss)

8.2

8.6

1.0

Return on sales

8.1%

9.1%

1.4%

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Total
2009/10 2008/09
£'m
£'m
211.5

206.5

39.0

37.6
0.3
37.9

211.5

206.5

(1.3)

5.5

5.8

14.7

13.1

-1.7%

14.1%

15.3%

7.0%

6.3%

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Sales Bridge(0.7)

7.7(2.0)

220

211.5

206.5210£ MILLION

200190180170160
2008/09
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FXVolPrice

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Profit Bridge

10.4(6.2)

25.0(0.3)

20.0(3.0)£ MILLION

2.7
15.0(2.0)

11.1

(0.8)

11.9

10.0

5.0

0.0

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Efficiency
170.0

1.30

160.0
1.25

150.0

£'000

140.0
1.20

130.0
120.0

1.15

110.0
100.0

1.10

90.0
80.0

1.05
2005/06

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2006/07

2007/08

Sales/employee

2008/09

2009/10

Value Add
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Cash Flow
6.640.0
35.08.1£ MILLION

20.0

(4.0)
(1.2)

(3.4)
(4.1)

30.0
25.0

(1.7)

22.5

(1.7)

(3.2)

17.9

15.0
10.0
5.00.0Oxford Instruments 2010

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Orders

250.0

250.0
211.5

206.5 204.2
200.0£ MILLION

150.0
102.0

Sales

Orders

100.0

65.9

Orderbook50.0

2008/09
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Pensions
200150£ MILLION

10050
Assets0

Liabilities
Deficit-50-100-150-200
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Mar 06

Mar 07

Mar 08Mar 09Mar 10
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Five Year Performance - Sales
250.0£ MILLION

200.0
150.0
100.0
50.00.0

2005/06

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2006/07

2007/08

2008/09

2009/10The Business of Science®

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Five Year Performance - Profit
16.0
14.0

£ MILLION

12.0
10.0
8.0
6.0

4.0
2.0
0.0
2005/06
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2006/07

2007/08

2008/09

2009/10The Business of Science®

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Operational Review

Jonathan Flint
Chief Executive

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Three Business Sectors
To be the leading provider of new
generation tools and systems for industrial andresearch markets, based on our ability to analyse and manipulatematter at the smallest scale

IndustrialAnalysis
NanoAnalysis

NanoScience

PlasmaTechnology
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Super conducting
Wire

MagneticResonance

MRIService

AustinScientificService
elements
of other twosectors
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Nanotechnology Tools

NanoAnalysis
Systems for materials analysis at the nano-scale• X-Max large area silicon drift detector
dominates the market• Research markets strengthening after
weak first half
• Launch of next generation table top
microscope• Applications include:• Engine development in aerospace
and automotive industry• Conservation and artefact analysis
in museums around the world• Failure analysis for semiconductors

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Nanotechnology Tools

NanoScience
Environments for nanotechnology research• Improved business performance• Strong funding in research markets• Interest from customers in acquiring ourskills and expertise through new
consultancy business• Winners of the 2010 Queen’s Award forEnterprise: Innovation for Triton200• Applications include Quantum information
processing for secure data handling, climatemodelling and drug development

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Nanotechnology Tools

Plasma Technology
Tools for nanotechnology fabrication• Very strong growth driven byAsia• Research funding continues togrow and diversify regionally• HBLED market growing verystrongly driven by backlighting
for displays• Ion Beam tool sales growth
driven by increasing applications
for sensors

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Industrial Products

Industrial Analysis
Tools for QC, Environmental and Compliance Testing• Industrial markets showing signs ofrecovery• Growth opportunities in hand-held
instrumentation• Success of Foundry Master Pro insteel sector• Successful restructuring of thebusiness• Applications include:• Metals analysis• Analysis on designer accessories
and jewellery• Low sulfur in petroleum
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Industrial ProductsSuperconducting Wireleading provider of superconductors for MRI and research• Record orders resulting from$62m ITER order• Significant manufacturingramp up initiated to preparefor ITER deliveries• MRI demand increasing

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Industrial Products

Magnetic Resonance
Benchtop NMR for industrial applications• Strong performance• Large order from Turkish
agricultural co-operative tomeasure oil content in sunflower
seeds• Leading supplier for rock core
analysis tools in the energy sector• New product development projects
focused on rock core sector

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ServiceService• Increase in number of MRI
systems serviced in USA• Growth opportunities forhelium-fill services• Expanding technical support inJapan and other Asian markets• Growth in industrial service
contracts

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Sustainability Programme• Objective to reduce our global energy
usage by 5% year on year
• Full participant in the Carbon Reduction
Commitment Energy Efficiency Scheme(CRC) and Carbon Trust Standard• Commitment to reducing waste output
and increase recycling

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Summary and Outlook••••••Research markets remain robust
Improving industrial markets
Strong growth in Asia
Continued focus on efficiency
New Product Introduction programmes in place
Strong foundation for growth“ Now that global markets are recovering, we are confident these efficiency improvements
and new products will deliver further growth in the current year and form a strong
foundation from which we can deliver long term shareholder value.”

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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 involveuncertainty 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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