Interim Results Announcement
To 30th September 2016

The Business of Science®

Ian Barkshire – Chief Executive
Gavin Hill – Group Finance Director© Oxford Instruments 2016

AgendaThe Business of Science®

• Highlights• Financial Review• Operational Review• Outlook© Oxford Instruments 2016

Highlights
The Business of Science®

• Stable performance in tough markets• Continued focus on self-help to improve performance• Improved profitability in NanoTechnology Tools• Revenue growth in Service offset by reduced refurbishedsystem sales in OI Healthcare• Increased order book
• Investment in future with R&D up 12%© Oxford Instruments 2016

The Business of Science®

Financial ReviewGavin Hill

© Oxford Instruments 2016

Income Statement
The Business of Science®

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

HY
HY Reported
2016/17 2015/16
Change
171.5
164.8
+4.1%
19.0
20.0
-5.0%
(3.3)
(3.7)
15.7
16.3
-3.7%

Amortisation of acquired intangibles
Non-recurring items and acquisition related costs
Mark to market of currency hedges(Loss)/profit before tax

(8.1)
(1.7)
(6.4)
(0.5)

(8.4)
(2.6)
0.8
6.1

Continuing adjusted basic earnings per share
Dividend per share (interim)

21.4p
3.7p

21.7p
3.7p

© Oxford Instruments 2016

-1.4%

Constant
Currency
Change-6.9%-13.5%-14.1%

Revenue by Sector
The Business of Science®

£m
2015/16: HY
Underlying
FX
2016/17: HY
GrowthReported
Constant currency

NanoTechnology
Tools

IndustrialProducts

Service

Total*

85.4
(4.2)
9.7
90.9

46.0
(6.6)
4.3
43.7

33.9
(0.3)
4.1
37.7

164.8
(11.3)
18.0
171.5

+6.4%
-4.9%

-5.0%
-14.3%+11.2%
-0.9%

+4.1%
-6.9%

*Excluding inter-segment revenues© Oxford Instruments 2016

Revenue by Territory
The Business of Science®

GroupRevenue %Europe25.1%

North America
33.9%

Asia
39.0%

ROW
2.0%

66.9
61.2
58.1

40.8

2016

58.6

43.1

2017

2016

2017

2016

2017

4.2

3.4

2016

2017

Reported Growth

+5.6%

-5.1%

+14.2%-19.0%

Constant
Currency Growth-4.2%-14.7%+0.7%-23.8%

Constant currency growth excludes currency effects; £ in millions© Oxford Instruments 2016

Order Book Growth
The Business of Science®

162.2

£m165
160

reported: +19%
constant currency: +5%

155
150

140.4
136.9145

reported:+16%
constant
currency:+7%

140135130
125120

September 2015

© Oxford Instruments 2016

March 2016

September 2016

Adjusted PBT Bridge
The Business of Science®

£m18

16.3(3.4)
0.7

16
1412
108
64
20

© Oxford Instruments 2016

1.7

0.4

15.7

Adjusted Operating Profit bySector

The Business of Science®

NanoTechnology

Industrial£mTools

Products

ServiceTotal

2015/16: HY
Underlying
FX
2016/17: HY

9.5
1.3
0.4
11.2

1.7(0.7)
0.4
1.4

8.8(3.3)
0.9
6.4

20.0(2.7)
1.7
19.0

EBIT Margin
2015/162016/17

11.1%
12.3%

3.7%
3.2%

26.0%
17.0%

12.1%
11.1%

© Oxford Instruments 2016

Movement in Net Debt
The Business of Science®

£m24.7(17.0)

2520
15(2.0)10(4.0)(12.9)

(3.5)
5
1.9

0(0.7)-5(2.6)

(0.8)

(2.1)

-10-15© Oxford Instruments 2016

(6.8)

Currency Exposure:Translation & Transaction£m equivalent

The Business of Science®

104.2

110
9070
50

30.5
30

26.8

18.7

13.5

8.3

5.9

10

8.3
(1.2)

(10)
(24.5)(30)

Sterling

US DollarSales© Oxford Instruments 2016

EuroJapanese Yen

Adjusted operating profit

Other

The Business of Science®

Operational Review
Ian Barkshire© Oxford Instruments 2016

Business Segments
The Business of Science®

NanoTechnology Tools

Industrial Products

High-performancetechnology products

Analytical instruments
and high technology
components• NanoCharacterisation
NanoAnalysis
Andor Technology
Asylum Research• NanoSolutions
NanoScience
Plasma Technology
ScientaOmicron JV

53% of revenues© Oxford Instruments 2016

• Industrial Analysis• Industrial Components
Superconducting Wire
X-ray Technology

ServiceMaintenance, service
and support for ourproduct portfolio.
Maintenance, sale andrental of refurbishedimaging systems• OiService - own products• OI Healthcare

25% of revenues

22% of revenues

End Market Segments
The Business of Science®

GroupNanoTechnology Tools

Industrial Products

1%

1%

2%

7%

3%

11%

12%

1%

4%
16%
38%

4%

4%

56%

29%

47%

24%

9%

10%

© Oxford Instruments 2016

15%

6%

NanoTechnology Tools
Performance

The Business of Science®

• Improved profitability and margin with growing order book
• NanoAnalysis continues to deliver strong technical and••financial performance
Further growth and improved performance from Andor
Reduced US and EU research funding impacted AsylumResearch• Good progress in Plasma Technology• NanoScience growth supported by quantum technology•funding
ScientaOmicron JV performing in line with expectations© Oxford Instruments 2016

NanoTechnology Tools Progress
The Business of Science®

Andor Technology: Producing
solutions that offer advanced life
science imaging• Dragonfly - unprecedented image
performance, resolution, sensitivity© Oxford Instruments 2016

NanoTechnology Tools Progress
The Business of Science®

NanoAnalysis: Creating value forcustomers with application specificsolutions• AZtecClean – automotive industry• AZtec HPA – hard disk drives
NanoScience• Increased sales of next generation••

Triton system
Move towards integrated
measurement and analysis systems
Increased productivity© Oxford Instruments 2016

Industrial Products Performance
The Business of Science®

• Revenue down due to challenging end markets• Better operating profits through business improvements offset by
reduced demand for MRI wire

• New product launches and improved routes to market gaining
traction in Industrial Analysis; margin improvements throughongoing self-help• Superconducting Wire completed a major MRI contract with anOEM and renegotiated the continuation of a supply agreement withanother MRI customer• Broadening market applications in XT, continued impact fromsoftening in customers’ end markets© Oxford Instruments 2016

Industrial Products Progress
The Business of Science®

• Pulsar sales growth driven bybroader industrial customer
solutions and academic demand• Innovative Hero™ window
enables characterisation of hot
metals, improving customer
productivity© Oxford Instruments 2016

Service Performance
The Business of Science®

• Increased order book across our Service portfolio• Growth in Service revenues from our NanoTechnology
Tools and Industrial Products businesses• Reduction in revenue and operating profit from OI
Healthcare due to lower volume of refurbished system sales© Oxford Instruments 2016

Service Progress
The Business of Science®

• Expanding range of services• New webstores in USA, Europe, China• Microscopy consumables• Online booking for seminars• Online support documentation• Remote system monitoring© Oxford Instruments 2016

Delivering Sustainable GrowthThe Business of Science®

• Customer and market focus• Innovation and new product development• Delivering enhanced product solutions• Delivering operational excellence© Oxford Instruments 2016

Outlook
The Business of Science®

• Revenue and order book ahead of last year
• Full year performance expected to be in line with last year
• Anticipate currency benefit of approximately £7.0 million tooperating profit in 2017/18• Confidence in long term growth prospects throughcommercial exploitation of nanotechnology• Continued focus on self-help to improve performance© Oxford Instruments 2016

The Business of Science®

Questions?
© Oxford Instruments 2016

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
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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.
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© Oxford Instruments 2016