Oxford Instruments

Half Year Results Announcement
November 18th 2008
Jonathan Flint – Chief Executive
Kevin Boyd - Group Finance Director

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Contents• Half Year Overview – Jonathan Flint• Financial Review – Kevin Boyd
• Operational Review – Jonathan Flint

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Half-Year Overview• Sales up 19%• Profits up to £2.6m (2008 £1.8m)• Continued organic growth• Two successful acquisitions• Interim Dividend unchanged• On plan

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Strategic Overview
We plan to double the size of the business over
5 years and at the same time improve our returnon sales by 10%

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What have we achieved in the first half ofthe plan?
• Development of Commercial Culture• New Product Introductions• Acquisitions

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How have changes in the global trading
environment affected us?
• US
Decline in some sectors• EMEA
Steady on average• Asia (exc China) Steady on average• China
Growth in some sectors

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Opportunities for the second half of theplanGrowth• Growth may be harder to achieve• New Product Introductions will give us market sharegains• Key industries, such as photovoltaic devices, appear toremain buoyant

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Opportunities for the second half of theplan
Margin Improvement• Business process re-engineering• Supplier leverage• Freight costs• Currency

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Opportunities for the second half of theplanAcquisitions• Much of the acquisitive growth for the plan has alreadybeen achieved• Given the uncertainties in valuations, only opportunities
to offer near term value would be pursued• There is IP and route to market value to be had fromundervalued companies• Potential acquisitions will be reviewed conservatively
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Financial Review
Kevin Boyd
Group Finance Director

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Financial Highlights
2008/09

2007/08£m£mRevenues
Gross profit

92.838.2

78.3
31.5

GPM%

41.2%

40.2%

Trading profit
Finance costs
Adjusted profit before tax
Amortisation of acquired intangibles"Exceptionals"
Mark to MarketProfit /(loss) before tax
TaxEarnings

3.5(0.9)
2.6(2.0)
2.0(1.3)
1.3
0.0
1.3

2.0
(0.2)
1.8(0.4)
0.7
0.2
2.3(0.8)
1.5

Adjusted EPS (pence)
EPS (pence)

3.4
2.6

2.3
3.0

Growth

18.5%

75.0%
44.4%

47.8%

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Sales Bridge

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Profit Bridge

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Cash Bridge

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Half Yearly Sales

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Half Yearly Adj. PBTThe Business of Science®
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FX rates

Historic achieved rates plus hedged
rates for current and next year

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Sales, Orders and Orderbook

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Oxford Instruments‘Exceptionals’£m£MDisposal of ODL
Write down of Investment
Disposal of MBE

ProfitCash

3.4
(0.5)
(0.9)
2.0

3.0
0.3
3.3

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Operational Review
Jonathan Flint
Chief Executive

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Structure

Oxford Instruments plc

AnalyticalIndustrial
Analysis

NanoAnalysis

Instruments for elemental
analysis metals identification,
coating thickness measurement
and X-ray sourcesSuperconductivity
NanoScience

Cryogenic systems
Superconductingmagnets

OSTSuperconducting
wire and cables.
MRI support

Molecular
BiotoolsTools for thedevelopment ofbioscience
applications

AustinScientific

Cryogenic vacuum
pump systems

Microanalysis systems
for electron microscopes
Process solutions to enable thePlasma
fabrication of nano structures
Technology for research, development andmanufacturing

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Industrial Analysis• Launch of next generation, highperformance hand held analysers• New applications
 Photovoltaics – analysis of solar
panels and fuels cells
 Oxford Instruments X-ray detector
on Chandrayaan-1, India’s space
mission to survey the moon

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NanoAnalysis• Launch of X-Max – world’s firstlarge area silicon drift detector• Thin Film Analysis for accurate,
non-destructive analysis of thinfilm coatings• Key supplier of forensic systems
to police forces world-wide

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NanoScience• High demand for Liquid Cryogen-free
low temperature tools• Restructuring programme to re-focus
the business Dedicated business streams
 Streamlined workforce

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Plasma Technology• Photovoltaic market strong• HBLED market continues to develop• New orders in the RFID market –Radio Frequency Identification
Devices

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Molecular Biotools• PharmaSense™
 Understanding the behaviour ofdrugs in the human body

Tablet dissolution at 0 hrs

Tablet dissolution at 8 hrs• Rock Core Analysis for oil
exploration

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Superconducting Technology• Fusion, research and new medical
applications for our Niobium Tinsuperconducting wire
• Increase in supply of MRI conductors• ITER

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Outlook•••••••

Currently on plan
Ready to take necessary action to maximise shareholder value
Differentiated product portfolio
Geographic spread
Strong R&D pipeline
Balance of organic and acquisitive growth
Currency tailwind“These factors underpin the Board’s continued confidence indelivering a full year performance that is in line with its expectations”

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