Half Year resultspresentation
to 30 September 2020

Ian Barkshire
Chief Executive
Gavin Hill
Group Finance Director

AgendaHighlights
Finance Review
Horizon & Covid Updates
Operational Review
Summary and Outlook

Oxford Instruments plc Half Year Results presentation 20202Highlights• Resilient first half performance• Continued progress with Horizon strategy• Strong order and order book growth• Revenue impacted by covid-related disruption• Strong margin performance through strategic actions• Growth in net cash, strong balance sheet• Reinstatement of interim dividend
Oxford Instruments plc Half Year Results presentation 2020

3Finance Review

Gavin Hill

Oxford Instruments plc Half Year Results presentation 2020

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

2020/21
140.3
24.3
(0.6)
23.7

2019/20
157.6
26.2
(0.4)
25.8

Amortisation of acquired intangibles
Non-recurring items
Mark-to-market of currency hedges

(4.3)
0.8

(4.4)
(2.5)

Profit before tax from continuing operations

20.2

18.9

Continuing adjusted basic earnings pershare
Dividend per share

32.8p
4.1p

36.0p
-ReportedChange(11.0%)(7.3%)

Constant
Currency
Change(11.0%)(11.5%)(8.1%)(12.4%)(8.9%)

Oxford Instruments plc Half Year Results presentation 2020

55

Revenue by Sector£m
2019/20
Underlying movement
FX
2020/21
GrowthReported
Constant currency

Materials & Research & Service &Characterisation
Discovery Healthcare

Total

73.2
(8.0)
65.2

57.8
(9.5)
48.3

26.6
0.2
26.8

157.6
(17.3)
140.3(10.9%)(10.9%)(16.4%)(16.4%)

+1.1%
+1.1%

(11.0%)(11.0%)

Oxford Instruments plc Half Year Results presentation 202066

Revenue by Territory: £mGroup Revenue %EuropeNorth America

Asia

RoW

29%

24%

46%

1%

64.3

45.9

63.9

45.8
40.5
33.8

1.5
2019/20 2020/21

2019/20 2020/21

2019/20 2020/21

Reported growth(11.8%)(26.2%)(0.6%)+40.0%

Constant currency growth(12.0%)(25.8%)(0.8%)+40.0%

Orders: reported growthOrders: constant currency growth(2.7%)(2.7%)

+6.6%
+7.1%

+9.1%
+8.8%

+66.7%+57.1%

2.1

2019/20 2020/21

Oxford Instruments plc Half Year Results presentation 202077

Order Book: £m
101.7

96.5

76.8

53.4

2019/20

2020/212019/20

2020/21

25.1

26.1

2019/20

2020/21

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

Reported growth+43.8%

+5.3%

+4.2%

+16.9%

Constant currency growth+44.9%+5.5%(1.3%)+16.6%

Oxford Instruments plc Half Year Results presentation 2020

8Adjusted Operating Profit by Sector£m2019/20
Underlying movement
FX
2020/21
EBIT Margin
2019/20
2020/21

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

12.2
(3.9)
0.6
8.9

6.4
(0.5)
0.5
6.4

7.6
1.4
9.0

26.2
(3.0)
1.1
24.3

16.7%
13.7%

11.1%
13.3%28.6%
33.6%

16.6%
17.3%

Oxford Instruments plc Half Year Results presentation 202099

Cash Flow
Pensions:
Accounting asset: £1.1m (31 March20: £30.7m)(£3.0m)(£0.5m)(£1.1m)(£1.3m)(£1.0m)(£4.0m)£67.5m£28.4mNet cash
31 March 20

EBITDA

Working Capital
Outflow: £3.0m (2019:outflow of £11.3m)

Working
CapitalCapitalised
Development£81.4m(£3.7m)

£0.0m

£0.1m

Effective tax rate
20.7% (2019: 20.2%)

Capex

Lease
Liabilities

InterestTax

Pensions

Dividend

FX/OtherNet cash
30 Sept 20

Cash conversion: 97% (2019: 62%)

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1010

Currency Exposure

66.9£m equivalent70

30

30.3

28.1

26.0

18.4

14.3

8.6
2.4

0.6

0.4
(0.6)

(10)

(30.8)(50)
Sterling

US Dollar

EuroSales

Japanese Yen

Chinese Renminbi

Other

Adjusted operating profit

Oxford Instruments plc Half Year Results presentation 2020

1111

FX Sensitivity• Favourable currency impact in First Half 2020/21: AOP: +£1.1m• Estimated Second Half 2020/21 currency impact– Assuming current hedges and no change from forecast rates,
currency sensitivity against FY 2019/20: Revenue: (£1.0m); AOP:+£0.2m• Estimated Second Half 2020/21 currency sensitivity– Assuming current hedges and a 5% strengthening of Sterling against
major trading currencies from forecast rates, currency sensitivity
against FY 2019/20: Revenue: (£7.9m); AOP: (£1.3m)• Uncertain volume and timing of shipments and acceptances,currency mix and FX volatility, may significantly affect full year
currency impact outcomes

Second half forecast rates – GBP:USD 1.30; GBP:EUR 1.11; GBP:JPY 135Oxford Instruments plc Half Year Results presentation 202012

Finance Summary• Strong growth in orders• Margin sustained despite fall in revenue• Good operating cash conversion of 97% with net cash of £81.4m• Total headroom of approximately £214m, including the undrawn£105m credit facility• Robust first half trading and a strong order book supports

reinstatement of guidance and declaration of an interim dividend

Oxford Instruments plc Half Year Results presentation 202013

Operations Review

Ian Barkshire

Oxford Instruments plc Half Year Results presentation 2020

Horizon Update• Horizon provided solid foundation for growth, delivering tangible
financial gains and supporting margin• Acceleration of market intimacy, further exploiting sales, marketingand service synergies• Expansion of digital sales and marketing capabilities• Transformation of service offering• Continued progress with operational excellence programme• Maintained progress and investment in product development• Further enhanced the skills and capabilities across the Group
MarketIntimacy

Innovation &ProductDevelopment

Customer
SupportOperational
Excellence

Oxford Instruments plc Half Year Results presentation 202015

Covid Update• Prioritising health and wellbeing of employees
and supporting customers• Trading significantly impacted by covid-related
disruption at customer sites and protracted
administrative processes• Hybrid workplace model maintained business
continuity• Implemented new working practices andprocesses, improving operational output andcustomer support• Agility and commitment of our people provide
resilience and foundation to navigate covid
disruption

Oxford Instruments plc Half Year Results presentation 202016

Group Performance
Materials &Characterisation

Academic: 54%
Commercial: 46%

Research & Discovery

Service & Healthcare• Strong order growth across both commercial and academic
customers• Trading more significantly impacted by covid in Q1, with positive
momentum through Q2• Double digit growth in orderbook• Margin maintained through benefits from Horizon and cost control• Breadth of markets and exposure to full technology cycle provide
business resilience
Fundamental
Research

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

Innovation
approachApplied R&DProductapplication
insight

Our key enabling
technologies and solutions
facilitate the developmentof more advancedproducts

MarketinsightHigh Tech
Manufacturing

Providing products tosupport today’s
manufacturing challenges& increase productivity

Oxford Instruments plc Half Year Results presentation 202017

Group Performance – End Markets

Academic: 54%
Commercial: 46%• Broad and diverse range of attractiveend markets with long term growth
drivers9%• Growth supported by resilient end

27%

market demand in Semiconductor,
Quantum Technology and Advanced
Materials

20%% ofRevenue
8%

30%
6%

• Strong order growth in North Americaand Asia offset by softness in Europe• Market intimacy enabling continued
expansion into new markets

Oxford Instruments plc Half Year Results presentation 202018

47% Group revenue
Academic: 48%
Commercial: 52%

Materials & Characterisation

Asylum Research; Magnetic Resonance; NanoAnalysis; Plasma Technology
Enabling the fabrication and characterisation of materials and devices down to the atomic scale• Orders increased 17% with growth from4%

both academic and commercial customers• Strong order growth in Semiconductors,

35%% ofRevenue

improved demand within Advanced
Materials, Quantum and Lifescience• Strong order growth in North America andAsia, good growth in Europe

48%13%• Revenue and margin impacted by covid-1%

related disruption

Semiconductor
Deposition System

Benchtop NMR

Material Structural Analyser

Atomic Force Microscope

Oxford Instruments plc Half Year Results presentation 202019

Materials & Characterisation
Growth Examples
Global Market Drivers

Semiconductor & Communications• Buoyant compound semiconductor market

Power Electronics

Connectivity

Communications- strong growth in etch and deposition
systems• Strengthened silicon semiconductor

market - new products supporting
increased sales of imaging and analysis
products

Semiconductor Wafer

Energy & Environment• End market softness was partially offset bygrowth in dedicated battery solutions• Sustainable long-term growth drivers

Composition &Structure of Flip Chip
Solder Bump

AZtecWave

Oxford Instruments plc Half Year Results presentation 202020

Materials & Characterisation
Growth Examples
Advanced Materials• Continued demand for lighter, stronger,higher performing materials• Tailored products enabling faster structural

Next Generation Steel and Material Structure Analyser

material analysis• Growth in the analysis of advanced
polymers

Flexible Display & Polymer Microstructure

Healthcare & Lifescience• Tailored solutions for pharma andbiomedical industry driving growthPharmaceuticals andAZtecPharma
SoftwareOxford Instruments plc Half Year Results presentation 202021

34% Group revenue
Academic: 67%
Commercial: 33%

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

Advanced solutions that create unique environments and enable measurements down to the molecularand atomic level• Severe customer covid disruption in Europe andNorth America significantly impacted revenue• Disproportionate impact of covid on scientific% ofRevenue

cameras and optical microscopy solutions sales• Order growth in Quantum and Advanced

Materials more than offset by softness fromacademic Lifescience customers

34%

25%

20%
1%

• Increased profitability reflects realisation of7%
12%

Horizon benefits

Dragonfly 200

Triton CryocoolerCamera

X-ray Tube

Oxford Instruments plc Half Year Results presentation 202022

Research & Discovery
Growth Examples
Global Market Drivers

Healthcare & Lifescience• Fundamental market drivers
supporting improved health remainrobustCell Biology

Personalised
Medicine

Neuroscience

Immunology• Subdued demand due to customer site
closures, positive momentum in Q2• Increased OEM demand for covid-Covid Testing

related diagnostics and researchproducts• Our key enabling technologies

underpin advances in understanding
fundamental disease mechanisms andthe development of new treatments
e.g. DNA editing

Analysis andVisualisation Software

CRISPRCRISPR DNA editing
Oxford Instruments plc Half Year Results presentation 202023

Research & Discovery
Growth Examples
Quantum Technology• Growth in quantum demand
supported by governments &commercial customers• Partner in consortium to build UK’s
first commercial quantum computer

Global Market Drivers
SecureCommunication

QuantumSensors

Research & Fundamental Sciences• Continued demand across broad rangeof research themes• Scientific camera supported NASA’s water on themoon discovery• First IoP Beijing installations successfully completed

QuantumComputing

QuantumImaging

Commercial Quantum Computer

Oxford Instruments plc Half Year Results presentation 2020

Moon Imaging
with Scientific
Camera24

Service & Healthcare

19% Group revenue

Provides customer service and support for our own products and the service and support of third party
MRI scanners in Japan• Revenue from Japan MRI operations broadly inline with previous year

• Accelerated the transformation of our customer
support offerings – driving improved profitability

Remote Support• Higher value products, improved capacity andenhanced service delivery• Proactively supported customers through covid,

improving productivity and minimising down time

• Service strategy remains central to ongoing
implementation of Horizon
Repair,
Maintenance &Consumables

RemoteDiagnostics &Support

Yield
Management &Application
SoftwareAugmented Reality
SupportTraining &Consultancy

Oxford Instruments plc Half Year Results presentation 202025

Summary & Outlook• Strong order growth in H1, revenue impacted by covid-related
disruptions• Margins sustained despite lower revenues• Robust trading, combined with strong order book, gives us
confidence for H2• “We expect full year performance to be a little behind last year on aconstant currency basis, ahead of current analyst forecasts.”• Transformation of Group through Horizon strategy has provided

solid foundation for longer-term growth and margin improvement

Oxford Instruments plc Half Year Results presentation 2020

2626

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 wasprepared 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 Half Year Results presentation 202028