Oxford Instruments

Preliminary Results
Announcement
Jonathan Flint – Chief Executive
Kevin Boyd – Group Finance Director

June 14th 2011
© Oxford Instruments 2011

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Agenda••••••Highlights
Financial Summary
Operational Review
StrategyAcquisitions
Outlook© Oxford Instruments 2011

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Highlights• Strong performance from bothResearch and Industrial sectors• Significant growth in Asia
• Record order intake• Strong cash generation• Increase in dividend© Oxford Instruments 2011

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Financial Review© Oxford Instruments 2011

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Financial HighlightsOrders (£m)
Revenues (£m)
Trading profit (£m)
Return On Sales (%)
Adjusted profit before tax (£m)*
Adjusted EPS (pence)*
Dividend (pence)
Net Cash/(Debt) (£m)

2010/11
273.5
262.3
28.1
10.7%
26.2
41.5
9.0

2009/10
250.0
211.5
14.7
7.0%
11.9
17.8
8.4

Change
9.4%
24.0%
91.2%
+3.7pp120.2%
133.1%
7.1%

13.1(10.4)

23.5* Adjusted figures are stated before other operating income, amortisation of acquired intangibles,reorganisation costs, impairments and marking to market of hedging derivatives© Oxford Instruments 2011

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Sales Bridge(2.9 )

2.4

51.3

262.3

300

211.5
250

200

£m150

100500© Oxford Instruments 20112009/10VolFxPrice

2010/11
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Sales by Destination
2010/11

RoW, 3%Growth 9%

RoW, 4%
Europe, 32%
Growth 11%

2009/10Europe, 36%Asia, 38%
Growth 41%

Asia, 33%

North America, 27%
Growth 24%,
© Oxford Instruments 2011

North America, 27%

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Profit Bridge

7.8

45.0

0.9(2.9)
(2.3)

40.0

(11.2)

22.0

35.0
26.2
30.0

£m25.0
20.0
11.9
15.0
10.0
5.00.0© Oxford Instruments 2011

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Efficiency£k 180.0

1.60

170.0
1.40

160.0
150.0

1.20

140.0
130.0

1.00

120.0
0.80

110.0
100.0

0.60

90.0
80.0

0.40
2005/06

2006/07

2007/08

2008/09

Sales/employee© Oxford Instruments 20112009/102010/11

Value Add Index

Value Add Index = (Trading Profit + Employment Costs)/Employment Costs
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Cash Flow
6.9
45.0
37.5
40.0
35.0

0.6

(5.7)
(3.0)
(5.6)
(3.1)
(4.1)

30.0

£m23.5

25.0
20.0
15.0
10.0
5.00.0© Oxford Instruments 2011

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Pension Deficit
40.0

35.1

1.5

4.1
10.6

35.0
30.0
3.8

£m

25.0
6.4
20.0
11.7
15.0
10.0
5.00.0© Oxford Instruments 2011

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Orderbook
300.0

262.3

273.5

250.0
250.0

211.5

200.0

Sales

£m150.0

115.3

101.5

OrdersOrderbook

100.050.0

2009/10© Oxford Instruments 20112010/11

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Operational Review© Oxford Instruments 2011

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Three Business Sectors
Nanotechnology
Tools•Industrial Analysis•Magnetic Resonance•Superconducting Wire

•NanoAnalysis•NanoScience•Plasma TechnologyService

Industrial Products•OI Service•Austin Scientific•Service of other 2 sectors

2011

2010

2011

2010

2011

2010

Revenue

121.4

101.5

95.6

71.0

45.3

39.0

Trading
profit

14.6

8.2

5.9

1.0

7.6

5.5

Returnon sales

12.0%

8.1%

6.2%

1.4%

16.8%

14.1%

£m© Oxford Instruments 2011

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NanoTechnology Tools
High-performance technology products for research and industry••••

Strong performance with record orders
Growth buoyed by demand fromnanotechnology sector for nanocharacterisation and fabrication tools
Record growth in China due toinvestment in sales and service
Sales of new products exceedexpectations© Oxford Instruments 2011

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Industrial Products
Analytical systems for Quality Control, Environmental and Compliance Testing for industry andresearch• Strong performance driven byincreased demand in all industrialsegments• Opportunities in emerging markets
particularly in steel and metal sectors• Successful ramp up for ITER
• Significant growth in MRI market• Growth applications e.g. rock core
analysis and rice harvests© Oxford Instruments 2011

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Service• Reorganisation to focus on Service
progressing well
• Strong service orders and sales• Very strong Austin Scientific sales into
semi-conductor and solar market• Focus on Brand development© Oxford Instruments 2011

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Strategy© Oxford Instruments 2011

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Culmination of Five Year Plan
• Culture change• New ProductIntroduction/R&D• Efficiency programmes andcash control• Brand value© Oxford Instruments 2011

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Five Year Plan - Sales
£m
300.0

CAGR 14.4%

250.0

200.0

150.0

100.0

50.0

0.0
2005/06© Oxford Instruments 20112006/07

2007/08

2008/09

2009/102010/11

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Five Year Plan - Trading Profit
12.0%

30.0
28.1

Trading Profit

£mROS

25.0

10.0%

8.0%

20.0

14.7

15.0

6.0%

13.1
10.610.0

5.0

4.0%

8.3

4.4

2.0%

0.0

0.0%
2005/06© Oxford Instruments 20112006/07

2007/08

2008/09

2009/102010/11

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The 14 Cubed plan

Target compound revenue growth of 14% and atarget return on sales of 14% by 2014
© Oxford Instruments 2011

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How will the 14 Cubed plan be achieved?

© Oxford Instruments 2011

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Two acquisitions announced today• Managed as part ofNanotechnology Tools sector• Shared customer base
• New product opportunities• An unrivalled capability in
Nanotechnology Tools• EPS enhancing in current year

NanoScience

PlasmaTechnology

OmicronOmniprobe

NanoAnalysis© Oxford Instruments 2011

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Omicron Nanotechnology GmbH• German based, designs and produces
advanced microscopes and chemical analysis
instruments for nanotechnology research• Products used by scientists for research into
the properties of materials using ultra highvacuum to ensure extreme sample purity• Microscopes can image and move individual
atoms allowing the observation andmanufacture of nanostructures• Applications include next generation computerstorage and processing devices© Oxford Instruments 2011

The Omicron logo written in
individual atoms

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Omniprobe, Inc.
• US based, designs and produces tools giving
customers nanoscale laboratory capabilities
within microscopes• Customers in research sectors, including
nanotechnology and semiconducting devices• Products enable probing, manipulation, selective
deposition and etch, and sample preparation at
the nanoscale• A key application is the use of probes to cut outand remove ultra small pieces of a silicon wafer
for quality control testing© Oxford Instruments 2011

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Acquisition Financials£mOmicron**Omniprobe***Revenues

33.0

5.5

Operating Profit

2.8

1.0

Return on Sales

8.5%

18.2%

23.8 + 4.3*

12.1

8.5x

12.1x

Consideration
Transaction EV/EBIT* Purchase of freehold land and buildings valued at £4.3m** Vendor management accounts y/e 31/12/10 translated at €1.15*** Vendor management account for 12 months to 31/3/11 translated at US$1.65© Oxford Instruments 2011

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Summary and Outlook• Strong growth and record profitability in 2010/11• New medium term strategic plan
• Current trading positive• Increased dividend• Acquisitions© Oxford Instruments 2011

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