Half Year Results Announcement
11 November 2014

The Business of Science®

Jonathan Flint – Chief Executive
Kevin Boyd – Group Finance Director© Oxford Instruments 2014

Page 1

AgendaThe Business of Science®

• Overview• Financial Review• Operational Review© Oxford Instruments 2014

Page 2

Overview
The Business of Science®

• Improving trend in order intake• Strengthening markets in US and UK
offsetting weaker Asia performance• Strong order book for delivery in second half
• Continued FX pressure• Good contribution from Andor Technology• Healthy new product introduction pipeline© Oxford Instruments 2014

Page 3Orders Overview
The Business of Science®

• North America– Increased budgets for high-technology– Opportunities for growth in US healthcare market• Europe– Growth across all sectors– Completion of the ITER contract• Asia– Growth in China– Softening in demand for Nanotechnology Tools in Japan© Oxford Instruments 2014

Page 4

The Business of Science®

Financial Review
Kevin Boyd

© Oxford Instruments 2014

Page 5Financial Highlights
The Business of Science®

Orders (£m)
Revenues (£m)
Gross Margin (%)
Operating profit (£m)*
Return On Sales (%)
Adjusted profit before tax (£m)*
Adjusted tax rate (%)*
Adjusted EPS (pence)*
Dividend (pence)

2014/15
201.5
178.5
44.1%
18.9
10.6%
15.4
23.0%
20.9
3.7

2013/14
168.0
166.3
45.0%
22.0
13.2%
20.6
21.0%
28.6
3.4

Change19.9%
7.3%-90bps
-14.1%-260bps-25.2%+200bps-25.2%
10.1%

Net Cash (£m)

(137.5)32.2(169.7)

Organicchange
at CER
7.4%-5.9%*Adjusted numbers are stated to give a better understanding of the underlying business. Details of adjusting items canbe found in Note 2 of the Half Year Report© Oxford Instruments 2014

Page 6Sector Split
The Business of Science®

£mNanotechnology

IndustrialTools

Products

14/15

13/14

14/15

Service

13/14

14/15

Total

13/14

14/15

13/14

Sector orders*

115.7

79.6

53.2

54.5

33.2

34.9

201.5

168.0

Sector revenue*

92.8

77.1

54.5

58.0

31.7

32.3

178.5

166.3

Trading profit

6.6

7.4

5.5

8.1

6.8

6.5

18.9

22.0

Return on sales

7.1%

9.6%

10.1%

14.0%

21.5%

20.1%

10.6%

13.2%

Revenue Growth

20.4%

-6.0%

-1.9%

7.3%

CER Organic-13.7%

-0.7%

1.9%

-5.9%

*includes inter-sector values© Oxford Instruments 2014

Page 7

Sales Bridge
The Business of Science®

£m33.5
(6.8)

166.3

(3.0)

180.0

178.5

(11.5)

160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
2013/14© Oxford Instruments 2014

VolITER

Fx

M&A

2014/15

Page 8

Sales by Geography
The Business of Science®

2014/15

2013/14

2%

3%
32%

32%

Europe© Oxford Instruments 2014

33%

36%

34%
N America

Asia

RoWEurope

28%
N America Asia

RoW

Page 9

Sales, Orders & Orderbook
The Business of Science®

£m250.0
201.5
200.0

166.3

178.5

168.0

147.9
Sales123.0150.0

OrdersOrderbook

100.050.0

2013/14© Oxford Instruments 20142014/15

Page 10

Profit Bridge
The Business of Science®

£m25.020.6
20.0(3.1)
(1.5)
(2.1)

4.1

15.4

(3.1)
15.0(2.1)

2.6

10.0

5.00.0© Oxford Instruments 2014

Page 11Cash
The Business of Science®

£m
23.2

(15.2)

25.0
20.0
15.0(3.2)
10.0

(4.5)
WC
Capex

5.0

(2.9)

(13.2)(2.1)

0.0

EBITDA(2.4)

R&D
Pension-5.0(4.4)
M&A
0.2

Interest

(1.9)

-10.0

Tax-15.0© Oxford Instruments 2014Other
Dividend Outflow

Page 12

Annual Currency Exposure (2013/14)
The Business of Science®

Net Exposure £m

Revenue Exposure £m
250.0

80.0

200.0

60.0
40.0

150.0

20.0
100.0
Sterling US Dollar

50.0

EuroYen

Other-20.0
Sterling US Dollar© Oxford Instruments 2014

EuroYen

Other-40.0

Page 13

The Business of Science®

Operational Review
Jonathan Flint© Oxford Instruments 2014

Page 14

Our Businesses
The Business of Science®

Nanotechnology Tools

Industrial Products

ServiceHigh-performancetechnology products

Analytical instruments
and high technology
components

Service, support,
training, refurb,
consumables,
accessories• NanoSolutions• Industrial Analysis• OI Healthcare• NanoCharacterisation• Industrial Components• OiService - own products© Oxford Instruments 2014

Page 15

Nanotechnology Tools
highest technology products serving research and industrial customers in the
public and private sectors

The Business of Science®

• Increased demand•••from Quantum
Information Processing
research
Growth in 2D materials
applications
Expansion into Life
Science markets
Links with Nobel
science prize winners© Oxford Instruments 2014

Page 16

Andor Technology
part of Nanotechnology Tools
The Business of Science®

••••

Good performance
Seven new product launches for materials and life
sciences applications
New Managing Director appointed May 2014
Integration programme on track© Oxford Instruments 2014

Page 17

Industrial Products
analytical systems for quality control, environmental and compliance testing,and components for industry and research

The Business of Science®

• Successful launch of X-•••

MET8000 hand-held
analyser into scrap and PMI
markets
Delivery of multiple
compressors for radio
telescope project in SouthAfrica
Expansion of addressable
market for superconducting
wire
RMG and RoentgenAnalytik
integrating well

© Oxford Instruments 2014

Page 18

Serviceservice, support, training, refurbishment, consumables and accessories
The Business of Science®

• New business opportunities
in the US• Good growth in service
contracts and spares• Dedicated service repair
centre opened in India© Oxford Instruments 2014

Page 19

Summary and Outlook
The Business of Science®

• Challenging first half
• Strong order intake supports H2 performance• Full year performance around the lower end ofmarket expectations• Continued focus on developing innovative newproducts• Growing market share in core areas of physicalscience and extending reach into adjacent life
science markets© Oxford Instruments 2014

Page 20

Disclaimer
The Business of Science®

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 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.

© Oxford Instruments 2014

Page 21