PreliminaryResultsPresentation
to 31st March 2019

Ian Barkshire
Chief Executive

Gavin Hill
Group Finance Director
Oxford Instruments plc Preliminary Results presentation 2019

AgendaHighlights
Finance Review
Horizon Update
Operational Review
Summary and Outlook

Oxford Instruments plc Preliminary Results presentation 20192

Highlights• Continued progress with the• End markets remain positive with long-• Investment in operations, sales and• Strong order, revenue and profit growth in• Delivered strong revenue and profit• Good order and revenue growth in• Underlying margin growth offset by in-• Order, revenue and profit growth in• Strong growth in orders and orderbook• Net cash position after good cash

implementation of Horizon
marketinggrowthyear investments and currency headwind

term growth drivers

Materials & Characterisation
Research & Discovery
Service & Healthcarecollection

Oxford Instruments plc Preliminary Results presentation 20193

Finance Review

Gavin Hill

Oxford Instruments plc Preliminary Results presentation 2019

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

2018/19
333.6
49.7
(2.2)
47.5

2017/18
296.9
46.5
(4.2)
42.3

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

(9.6)
(0.9)
(1.5)

(10.9)(0.3)
3.1

Profit before tax from continuing operations

35.5

34.2

Continuing adjusted basic earnings per share
Dividend per share

64.9p
14.4p

56.3p
13.3p

Reported
Change+12.4%+6.9%

Constant
Currency
Change+10.8%+9.7%+12.3%+15.4%+15.3%+8.3%

Oxford Instruments plc Preliminary Results presentation 201955

Revenue by Sector£m2017/18
Underlying movement
FX
2018/19
GrowthReported
Constant currencyMaterials &Characterisation

Research &Service &Discovery Healthcare

Total*

118.1
18.1
1.7
137.9

112.0
11.1
2.1
125.2

66.8
2.8
0.9
70.5

296.9
32.0
4.7
333.6

+16.8%+15.3%+11.8%
+9.9%

+5.5%
+4.2%

+12.4%+10.8%* Excluding inter-segment revenues

Oxford Instruments plc Preliminary Results presentation 201966

Revenue by Territory: £mGroup Revenue %EuropeNorth America

24%

31%

Asia

RoW

43%
143.1

2%

119.6
103.8
92.9
79.3

81.2

5.1
2017/18 2018/19

2017/18 2018/19

2017/18 2018/19

5.5

2017/18 2018/19

Reported growth+2.4%+11.7%+19.6%+7.8%

Constant currency growth

+2.5%

+9.8%

+17.7%(5.9%)

Orders: reported growthOrders: constant currency growth

+7.5%
+7.4%

+4.3%
+3.1%

+24.0%+23.3%(10.4%)

Oxford Instruments plc Preliminary Results presentation 201977

Order Book: £m
91.1
78.0

41.2

40.8

39.3

2017/18

2018/1934.2

2017/18

2018/192017/18

2018/19

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

Reported growth+20.5%+16.8%(3.7%)+12.2%

Constant currency growth+16.7%+15.4%(8.1%)+9.4%* 2018 adjusted for IFRS 15
Oxford Instruments plc Preliminary Results presentation 20198Adjusted Operating Profit by Sector£mMaterials &Characterisation

Research &Discovery

Service &Healthcare

Total

2017/18
Underlying
movement
FX
2018/19

20.1

13.8

12.6

46.5

2.8
(0.8)
22.1

(0.3)
(0.8)
12.7

2.0
0.3
14.9

4.5
(1.3)
49.7

EBIT Margin
2017/18
2018/19

17.0%
16.0%

12.3%
10.1%

18.9%
21.1%

15.7%
14.9%

Oxford Instruments plc Preliminary Results presentation 201999Cash Flow
£60.7m£3.7m

Pensions:
Deficit: £6.5m (31 March 18: £15.3m)
Estimated cash cost of $4.5m over next
12 months to terminate US defined benefit
scheme(£3.5m)(£6.3m)(£3.2m)Working Capital:
Inflow: £3.7m (2018: outflow of £13.2m)(£3.2m)(£8.7m)Effective tax rate
21.9% (2018: 23.9%)
Cash settlement of £4.0m for historical tax
claim paid in April 2019(£7.1m)

£1.6m

£6.7m

OtherNet cash
31 March 19(£7.6m)Cash conversion: 103% (2018: 69%)(£19.7m)
Net Debt
31 March 18

EBITDA

Working Capitalised
Capital Development

Capex

Leaseliabilities

Interest

TaxPensions

Dividend

Oxford Instruments plc Preliminary Results presentation 2019

1010Currency Exposure200

183.2160£m equivalent

120
80

47.6

64.1

61.5
36.4

34.1

40

20.6

0

4.9

2.0(40)(80)(71.1)
Sterling

US Dollar

Sales

EuroJapanese YenOther

Adjusted operating profit

Oxford Instruments plc Preliminary Results presentation 20191111

Finance Summary•Good growth in orders and order book at reported and constantcurrency•Revenue growth of 10.8% and adjusted operating profit (AOP) growthof 9.7% at constant currency against last year

•AOP margin broadly neutral at constant currency against last year
•Continuing adjusted basic earnings per share up 15.3%•Good cash conversion of 103% resulting in year-end net cash of £6.7m•Strong balance sheet and new credit facility provides financial capacity
to support future business growth

Oxford Instruments plc Preliminary Results presentation 201912

Horizon Update &Operations Review

Ian Barkshire

Oxford Instruments plc Preliminary Results presentation 2019

Horizon Progress – Two Years In•Building a stronger Oxford Instruments positioned to deliver long-termsustainable growth and margin improvement•Transitioning to a customer centric, market focused Group•Growth into current markets and expansion into new applications•Portfolio positioned to address broad and diverse range of attractiveend markets and industrial sectors•Incremental investment in operational excellence programme; strategic
procurement, logistics and operational efficiency•Continued to build our leadership team, commercial focus and corecapabilities

Oxford Instruments plc Preliminary Results presentation 201914

Group Performance
Materials &Characterisation

Academic: 49%
Commercial: 51%

Research & Discovery

Service & Healthcare•Strong revenue and profit growth•Underlying margin growth offset by in-year investments•Expansion of commercial customer base and robust academicmarkets•Strong growth in orders and orderbook across each of oursectors

Fundamental
Research
Providing solutions tothose exploring new
frontiers at thenanoscale
Physical &Life Sciences

Innovation
approach

Product
application
insight

Applied R&D
Our key enabling
technologies andsolutions facilitate thedevelopment of moreadvanced products

MarketinsightHigh Tech
Manufacturing
Providing products to
support today’s
manufacturing
challenges & create
new opportunities

Oxford Instruments plc Preliminary Results presentation 201915

Group Performance – End Markets

Academic: 49%
Commercial: 51%•Broad and diverse range of end markets

8%and industrial sectors•End markets remain positive with long-28%
24%

term growth drivers•Healthy revenue and order growth acrossour main customer segments

4%
5%
9%

22%

•Strong growth across Asia and North

America, with modest growth in Europe

Oxford Instruments plc Preliminary Results presentation 201916

41% Group revenue
Academic: 42%
Commercial: 58%

Materials & Characterisation
Asylum Research; NanoAnalysis; Plasma TechnologyEnabling the fabrication and characterisation of materials and devices down to the atomic scale•Double digit growth in revenue, orders andorderbook

5%•Strong profit growth•Significant sales growth in Advanced Materials•Good growth in Semiconductor &Communications and Energy segments

39%
42%

7%

•Increasing demand from commercial

6%
1%

customers rising to 58% of sales (2018: 49%)

Atomic Force Microscope

X-ray Analyser

Semiconductor Processing System
Oxford Instruments plc Preliminary Results presentation 201917

Materials & Characterisation
Growth Examples

41% Group revenue
Academic: 42%
Commercial: 58%

Advanced Materials•Increasing demand for lighter, stronger, higher
functioning materials•Broad end markets include automotive,

Super-alloy
Microstructure

additive manufacturing, consumer electronics
and polymers•Performance and reliability of advanced

materials determined by composition andstructure

Energy•Growth across energy generation, storage andbattery applications

Extreme X-ray Analyser
Oxford Instruments plc Preliminary Results presentation 201918

Materials & Characterisation
Growth Examples

41% Group revenue
Academic: 42%
Commercial: 58%

Global Market Drivers

Semiconductor & Communications•Strong growth in compoundsemiconductors more than offset thedecline from electronics andmainstream silicon chip manufacturing•Sales of our imaging and analysis

products into research and applied
R&D mitigated declines frommanufacturing and production

Power Electronics• Generation• Distribution• Increased
efficiency

Connectivity

Communications• RF/5G• Data economy• Network speed& capacity• Optoelectronic
devices• Displays• Sensors

Driving demand for compound semiconductors, eg siliconcarbide, gallium nitride, indium phosphide & gallium arsenide•Technology transition away fromsilicon: disruption across powerelectronics, connectivity andcommunications

Oxford Instruments plc Preliminary Results presentation 20191938% Group revenue
Academic: 69%
Commercial: 31%

Research & Discovery

Andor Technology; NanoScience & Magnetic Resonance; X-Ray Technology; Scienta Omicron

Advanced solutions that create unique environments and enable measurements down to themolecular and atomic level•Double digit revenue, order & orderbook growth•Growth from academic research communities
and commercial customers

19%
41%

10%

•Financial performance impacted by a period of 2% 5%poor yield within X-Ray Technology•Strong growth across Lifescience, Quantum

22%

1%

Technology and Fundamental Science

Dragonfly 200

Triton Cryocooler

Pulsar NMR

CameraX-ray Tube

Oxford Instruments plc Preliminary Results presentation 201920

Research & Discovery
Growth Examples
Healthcare & Lifescience•Strong performance from optical
microscopy systems, imaging softwareand scientific cameras•Development of new therapies for cancer

and neurological conditions require larger
area and higher resolution images

38% Group revenue
Academic: 69%
Commercial: 31%

Global Market Drivers
Cell Biology

Personalised
Medicine• Cancer research• Live cell imaging• Diseasemechanisms• Cell-to-cellcommunications• Personalisedtherapies• Imaging drugefficacy• Molecularresponses

Neuroscience• Brain studies• Neurologicalconditions e.g.
Alzheimer’s &Parkinson’s•Huge datasets need advanced

visualisation and analysis to interpret core
biological processes

Dragonfly 500•Scientific cameras support growth in genesequencing, clinical screening and drug
feasibility studies

Visualisation
SoftwareOxford Instruments plc Preliminary Results presentation 201921

Research & Discovery
Growth Examples

38% Group revenue
Academic: 69%
Commercial: 31%

Global Market Drivers

Quantum Technology• Investment growth from academic andcommercial customers in quantum
computing, sensors, imaging & securecommunication

Quantum
Computing

SecureCommunication

QuantumSensors

QuantumImaging• Key enabling technologies include
cryogenic platforms, advanced scientificcameras and high magnetic field solutions
Research & Fundamental Sciences• Increased academic and government
investment• Regeneration of larger scale national user
facilities
Ultra High Field
MagnetOxford Instruments plc Preliminary Results presentation 201922

Service & Healthcare

21% Group revenue

OiService; OI Healthcare

Provides customer service and support for our own products and the service, sale and rental ofthird party healthcare imaging systems

Order, revenue & profit growth, with margin
improvement
OiService• Increased demand for services in line withchanging needs of customers• Broader range of products, consumables,training and services

OI Healthcare• Progress and improved performance in USHealthcare• Built on strategic relationships servicing thirdparty MRI systems in Japan

Mobile MRI Unit

Oxford Instruments plc Preliminary Results presentation 201923

Summary & Outlook• Good progress in the year, supported by Horizon strategy• Well positioned in attractive markets with long-term growthdrivers and focused on segments where we can maintainleadership positions• Addressing some of the world’s major challenges: enabling agreener economy, increased connectivity, improved health andleaps in scientific understanding• While mindful of the backdrop of geopolitical and market

uncertainty, we remain focused on improving the business andexpect to make further progress in the year
Oxford Instruments plc Preliminary Results presentation 201924
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Questions

Oxford Instruments plc Preliminary Results presentation 2019

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. TheCompany 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 Preliminary Results presentation 201926