Half YearResultsPresentation
to 30th September 2018

Ian Barkshire
Chief Executive

Gavin Hill
Group Finance Director
Oxford Instruments plc Half Year results presentation 2018

Agenda01: Highlights
02: Finance Review
03: Horizon Update
04: Operational Review
05: Summary and Outlook

Oxford Instruments plc Half Year results presentation 2018

2Highlights• Horizon well embedded across the Group• Strong growth in orders and order book

• Focused investment in sales, service and• Strong growth in Materials & Characterisation

operations• End markets remain positive and robust• Improved financial performance in Research &Discovery• Positive results from increased focus on end• Order and order book growth in Service &• Strong underlying revenue and profit• Good cash collection

market applications

growth in line with management
expectations

Healthcare

Oxford Instruments plc Half Year results presentation 20183

Finance Review

Gavin Hill

Oxford Instruments plc Half Year results presentation 2018

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

2018/19
147.0
21.0
(1.2)
19.8

2017/18
132.1
18.8
(2.5)
16.3

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

(4.7)
(0.6)
(2.9)

(5.6)
(0.6)
2.6

Profit before tax from continuing operations

11.6

12.7

Continuing adjusted basic earnings per share
Dividends per share

27.3p
3.8p

22.3p
3.7p

Reported
Change+11.3%+11.7%

Constant
Currency
Change+12.6%+16.0%+21.5%+26.4%+22.4%+2.7%

Oxford Instruments plc Half Year results presentation 2018

5Revenue by Sector£m2017/18
Underlying movement
FX
2018/19
GrowthReported
Constant currency

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total*

50.1
10.6
(0.6)
60.1

47.9
7.0
(0.6)
54.3

34.1
(1.0)
(0.5)
32.6

132.1
16.6
(1.7)
147.0

+20.0%+21.2%+13.4%+14.6%(4.4%)(2.9%)+11.3%+12.6%* Excluding inter-segment revenues

Oxford Instruments plc Half Year results presentation 20186

Revenue by Territory: £mGroup Revenue %Europe25%

North America
32%

Asia
41%

RoW
2%

60.8
51.8
45.7

33.4

47.2

37.0

1.2

2.0

2017/18 2018/19

2017/18 2018/19

2017/18 2018/19

2017/18 2018/19

Reported growth+10.8%+3.3%+17.4%+66.7%

Constant currency growth+10.8%+5.3%+18.9%+66.7%

Orders: reported growthOrders: constant currency growth(1.4%)(1.4%)

+1.4%
+3.7%

+26.6%+28.8%(16.2%)(13.5%)

Oxford Instruments plc Half Year results presentation 20187

Order Book: £m
83.5
78.0

47.5

46.9
40.8

34.2

2017/18

2018/192017/18

2018/192017/18

2018/19

Materials & Characterisation

Research & Discovery

Service & Healthcare

Total

Reported growth+38.9%+7.1%+15.0%+16.3%

Constant currency growth+33.3%

+5.0%

+9.3%

+12.5%*2017/18 adjusted for IFRS 15

Oxford Instruments plc Half Year results presentation 2018

Adjusted Operating Profit by Sector£m2017/18
Underlying movement
FX
2018/19
EBIT Margin2017/18
2018/19

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

7.2
2.8
(0.3)
9.7

4.2
1.0
(0.4)
4.8

7.4
(0.8)
(0.1)
6.5

18.8
3.0(0.8)
21.0

14.4%
16.1%

8.8%
8.8%

21.7%
19.9%

14.2%
14.3%

Oxford Instruments plc Half Year results presentation 2018

9Cash Flow30

Pensions:
Deficit: £9.9m (31 March 18: £15.3m)

Working Capital
Outflow: £1.2m (2017/18: £15.0m)

20Effective tax rate
21.2% (2017/18: 22.1%)

Cash/(Debt): £m

10-(10)(20)(30)

EBITDANet Debt
31 March 18

Working Capitalised
Capital Development

Capex

InterestTax

Pensions

Dividend

Net debt 30
Sept 18
Other

Cash conversion: 91% (2017/18: 13%)
Cash conversion is defined as cash generated from operations for non-recurring items and pension scheme payments, less capitalised development
expenditure, capital expenditure and payments made in respect of leases, divided by adjusted operating profit

Oxford Instruments plc Half Year results presentation 201810

Currency Exposure
120

79.0

£m equivalent

60
26.4

23.2

28.2
15.6

14.3

7.9

0

2.4
(0.3)

(28.6)(60)

SterlingUS DollarEuroSales

Japanese Yen

Other

Adjusted operating profit

Oxford Instruments plc Half Year results presentation 201811

Finance Summary• Good growth in orders and order book at reported and constant currency• Adjusted operating margin up 10 basis points to 14.3%• Continuing adjusted basic earnings per share up 22.4%• Strong cash conversion of 91% and net debt down to £12.5m• Refinancing completed in July 2018 with new multi-currency facilities of €50m and$80m

Oxford Instruments plc Half Year results presentation 201812

Horizon Update &Operations Review

Ian Barkshire

Oxford Instruments plc Half Year results presentation 2018

Horizon Progress• Good progress with the implementation of Horizon–Translating into positive results• Continue to embed sharper commercial focus and increased capabilities across sales,
marketing and operations• Increased market and customer application focus–Chosen markets remain positive & robust• Increased investment and focus on Operational Excellence:–Strategic procurement–Operational efficiencies–Logistics

Oxford Instruments plc Half Year results presentation 201814

Group PerformanceMaterials & Characterisation

Academic: 47%; Commercial: 53%

Research & Discovery

Service & Healthcare• Good growth in underlying orders, revenue and operating profit• Revenue growth from commercial & industrial customers to 53% (2017: 45%)
• Order book growth for all reporting sectors• Modest H1 impact from increased challenges in international trading environment

Oxford Instruments plc Half Year results presentation 201815

Group Performance – End Markets

Academic: 47%; Commercial: 53%• Broad customer base across a wide range of7%

applications and end markets• Strong revenue growth in Advanced Materials,Healthcare & Life Science and QuantumTechnologies

28%
24%

5%
5%

10%

21%

• Semiconductor & Communications revenue

broadly in line with previous year, good order
growth and pipeline

Oxford Instruments plc Half Year results presentation 201816

Materials & Characterisation

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

NanoAnalysis; Asylum Research; Plasma Technology

Enabling the fabrication and characterisation of materials and devices down to the atomic scale• Double digit growth in orders, revenue and6%

profitability• Growth and increased margin supported by customer

39%
39%

focused solutions and recently launched products• Revenue growth in US, Europe and Asia

8% 7%
1%

• Increased sales into Advanced Materials segment• Continued demand from customers across silicon
and compound semiconductor end markets

Oxford Instruments plc Half Year results presentation 201817

Group revenue
Materials & Characterisation – Growth Examples Academic: 42%;41%Commercial:
58%

Advanced Materials• Continued success from Symmetry™, Ultim™ and AFMplatforms• Delivering increased capability and productivity for

Identification andcharacterisation of contaminantsin the metal powder

customers in automotive, aerospace, metals, ceramics,
composites and polymers• New solutions addressing additive manufacturing

Microstructure 3D
printed metal*

Energy Generation, Storage and Batteries• Strong growth from measurement solutions supporting
development of next generation power devices*Sample courtesy of UES, Inc.

Lithium battery
Oxford Instruments plc Half Year results presentation 201818

Group revenue
Materials & Characterisation – Growth Examples Academic: 42%;41%Commercial:
58%

Semiconductors & Communications• Core capabilities and strong growth within

Global Market Drivers
Applied R&DNANO

Discrete

Optoelectronic• WirelessCharging• RF /5G• Powerelectronics• 3D sensors• Lidar• Facialrecognition• Datacommunication

compound semiconductor applications as weenter “the decade of materials”• Enabling more compact, higher speed, larger
capacity and higher energy efficient devices• Successful tailoring of our market leading research• Academicresearch• Industryresearch• MEMS• Graphene• 2D materials• Lithium IonBatteries

and applied R&D products for commercial
production customers• Developed leading capabilities in key process steps
for the manufacture of discrete and optoelectronic
devices

VCSELsOxford Instruments plc Half Year results presentation 201819

Research & Discovery

37% Group revenue
Academic: 65%; Commercial: 35%

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

Advanced solutions that create unique environments and enable measurements down to the molecular and atomiclevel• Improved orders, revenue and profitability• Strong performance from optical
microscopy systems, scientific cameras,
cryogenic systems and research magnets• Growth in Healthcare & Lifescience andQuantum Technologies segments

18%
40%

9%
1%

4%
25%

3%

• Research & Fundamental Science segment
remains attractive and significant

Oxford Instruments plc Half Year results presentation 201820

Research & Discovery

37% Group revenue
Academic: 65%; Commercial: 35%• Improved performance from Andor Technology• NanoScience transition progressing well
• Markets for benchtop NMR analysers remains positive• Increased orders for scientific X-ray tubes, delayed shipments
impacted revenue and profit• Order phasing impacted performance from Scienta Omicron
joint venture

Oxford Instruments plc Half Year results presentation 201821Research & Discovery – Growth Examples

37% Group revenue
Academic: 65%; Commercial: 35%

Scientific Cameras• Built on market and technical leadership inscientific cameras• New application specific cameras with
optimised performance• Sona™ for life science, including cellbiology and personalised medicine

Global Market Drivers
Cell Biology

Personalised
Medicine

Astronomy• Cancer research• Live cell imaging• Diseasemechanisms• Cell-to-cellcommunications• Gene editing• Personalisedorgan growth• Personalised
therapies• Near-EarthObjects• SolarAstronomy• AdaptiveOptics

Physical Science& Quantum• Quantum
optics• Quantum
computing• Quantum
cryptography• Marana™ for physical science andastronomy

Intestinal organoid
Oxford Instruments plc Half Year results presentation 2018

Elephant TrunkNebula22

Research & Discovery – Growth Examples

37% Group revenue
Academic: 65%; Commercial: 35%

Quantum Technologies• Continued investment by large corporates,
increased academic funding from EU, USand China governments

Global Market Drivers
Quantum
Computing

SecureCommunications

Quantum
Sensors

Quantum
Imaging• Quantum making rapid progress fromfundamental to applied research – targeting
commercial applications• Cryogenics, magnets and scientific cameras
drive fundamental research through tocommercial exploitation• Revenue opportunities remain irregular invalue and frequency

Triton quantum
computing platform

Oxford Instruments plc Half Year results presentation 201823

Research & Discovery – Growth Examples

37% Group revenue
Academic: 65%; Commercial: 35%

Research & Fundamental Sciences• Remains attractive growth segment• Customers exploring new frontiers predominantly
for physical sciences• A broad range of standard as well as bespoke
platforms, solutions and services• BepiColumbo mission to Mercury has our X-raydetectors

Image courtesy of ESA/ATG medialab

Oxford Instruments plc Half Year results presentation 201824

Service & Healthcare

22% Group revenue

OiService; OI Healthcare

Provides customer service and support for our own products and the service, sale and rental of third party
healthcare imaging systems• Revenue decline but double digit order and order book growth
OiService• Increased demand for services relating to own products• Broader range of products, training and services
OI Healthcare• Strategic progress with growth of service contracts andimproved utilisation of our leasing fleet• Soft market for refurbished imaging equipment impacted
revenue• New service agreement in Japan with Hitachi Healthcare
Oxford Instruments plc Half Year results presentation 201825

Summary & Outlook• Continued progress with the implementation of our Horizon strategy• End markets and underlying drivers remain positive, with strong growth fromcommercial and industrial customers• Good financial performance in the first half
• Expectations for the current financial year remain unchanged, supported by growth inconstant currency orders and order book, along with our anticipated second halfseasonal bias

Oxford Instruments plc Half Year results presentation 201826

Questions

Oxford Instruments plc Half Year results presentation 201827

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 was
prepared 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 and developments
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 2018