Preliminary resultspresentation
to 31 March 2020

Ian Barkshire
Chief ExecutiveGavin Hill
Group Finance Director

AgendaHighlights
Horizon Update & Covid-19 Response
Finance Review
Operational Review
Summary and Outlook

Oxford Instruments plc Preliminary Results presentation 2020

2Highlights• Progress with Horizon delivering
tangible financial benefits• Good underlying profit and margin
growth• Full year performance impacted bycovid-19 in Q4• Gains from improved commercial

practices & operational excellence
programme• Customer service transformation
driving strong growth andimproved profitability• Covid-19 response plan, ensuring • Net cash £67.5m, aided by strong
business continuity and longevity

cash collection and proceeds fromdisposals

Oxford Instruments plc Preliminary Results presentation 20203

Horizon Update• Positive progress with Horizon strategy driving underlying growth andimproved profitability• Customer centric, market driven approach identifying new markets andoptimising value with existing customers• Higher quality product roadmaps delivered through increased utilisation ofcross-business capabilities and collaboration partners• Margin growth supported by improved commercial practices and gains
through operational excellence• Customer service transformation driving growth and improved profitability• Divestments increase focus on chosen markets and support margin
expansion
MarketIntimacy

Innovation &ProductDevelopment

Customer
SupportOperational
Excellence

Oxford Instruments plc Preliminary Results presentation 20204

Covid-19 Response• Covid-19 disrupted business throughout Q4, equivalent to approximately
two weeks of revenue• Delays in shipment and installation at customer sites• Developed and implemented phased approach through covid-19
disruption• Prioritising health and wellbeing of employees, supporting customers
through maintaining business continuity• Manufacturing sites remained open with safe working practices andreduced occupancy, except short period in two US sites• Supply chain has remained robust• Our products and technologies directly contributed to the global fightagainst coronavirus and supporting essential services

Oxford Instruments plc Preliminary Results presentation 20205

Covid-19 Response• Implementing phase four – adapted business practices Our Hybrid Workplaceand capabilities to optimise business continuity
throughout global recovery• Protecting the business and job security of ouremployees through proactive cash management andcost containment measures including:–––––Temporary reduction in executive salary and Board fees
Delay of annual pay review and deferral of bonus
Suspension of dividend
Capex and headcount freeze
Utilising appropriate government support schemes

ClosedRestricted
accessControlled
opening
ManagedattendanceSoft opening• Our end markets and their growth drivers remain resilient and should not
be weakened in the long term by covid-19 headwinds• Benefits from Horizon strategy and strong balance sheet provide

resilience and foundation to successfully navigate covid-19 disruption
Oxford Instruments plc Preliminary Results presentation 20206

Finance Review

Gavin Hill

Oxford Instruments plc Preliminary Results presentation 2020

Income Statement£m
Revenue
Adjusted operating profit
Net finance costs
Adjusted profit before tax

2019/20
317.4
50.5
(1.0)
49.5

2018/19
314.0
47.7
(2.2)
45.5

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

(8.7)
(0.6)
(1.4)

(8.8)
(0.9)
(1.5)

Profit before tax from continuing operations

38.8

34.3

Continuing adjusted basic earnings per share
Dividend per share

70.2p-62.3p
14.4p

Reported
Change1.1%
5.9%

Constant
Currency
Change(0.7%)(1.0%)

8.8%

+1.5%

12.7%

Oxford Instruments plc Preliminary Results presentation 202088

Revenue by Sector
Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

2018/19
Underlying movement
FX
2019/20

137.9
(2.6)
2.3
137.6

125.2
(1.4)
2.2
126.0

50.9
1.9
1.0
53.8

314.0
(2.1)
5.5
317.4

GrowthReportedConstant currency(0.2%)(1.9%)+0.6%(1.1%)

+5.7%
+3.7%

+1.1%
(0.7%)£mOxford Instruments plc Preliminary Results presentation 202099

Revenue by Territory: £mGroup Revenue %EuropeNorth AmericaAsia

RoW

27%

28%

43%

2%

142.6

81.5

84.9

136.7

89.5

84.6

5.3
2018/19 2019/20

2018/19 2019/20

6.3

2018/19 2019/20

2018/19 2019/20

Reported growth

+4.2%

+5.8%

(4.1%)+18.9%

Constant currency growth

+4.7%

+3.0%

(6.5%)+17.0%

Orders: reported growthOrders: constant currency growth

+0.9%
+1.8%

+1.4%
(1.3%)(0.1%)(2.3%)(14.3%)(22.2%)

Oxford Instruments plc Preliminary Results presentation 2020

1010Order Book: £m
99.0
91.2

50.9
41.2
25.1

20.8

2018/192019/20

2018/192019/20

2018/192019/20

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

Reported growth+23.5%

+8.6%

20.7%

+14.2%

Constant currency growth+20.1%

+7.2%

17.3%

+12.1%

Oxford Instruments plc Preliminary Results presentation 2020

11Adjusted Operating Profit by Sector£m2018/19
Underlying movement
FX
2019/20
EBIT Margin
2018/192019/20

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

21.2(1.6)
1.4
21.0

12.9
0.3
1.3
14.5

13.6
0.8
0.6
15.0

47.7(0.5)
3.3
50.5

15.4%
15.3%

10.3%
11.5%

26.7%
27.9%

15.2%
15.9%

Oxford Instruments plc Preliminary Results presentation 20201212Cash Flow
Working Capital
Inflow: £10.1m (2019: inflow of £2.8m)

Pensions:
Accounting asset: £30.7m (31 March 19: £2.6m) Cashcost of $3.4m to terminate US defined benefit scheme

Effective tax rate
18.8% (2019: 21.8%)£10.1m£20.4m(£2.8m)(£4.3m)£60.4m(£1.0m)(£10.0m)(£8.2m)(£6.1m)£2.3m£67.5mOther

Net cash
31 March 20

Cash conversion: 124% (2019: 100%)£6.7m

Net cash
31 March 19

EBITDA

Working
CapitalCapitalised
Development

Capex

Interest

Tax

DisposalPensions

Dividend

Oxford Instruments plc Preliminary Results presentation 2020

1313

Currency Exposure

180

163.1

140

£m equivalent

100
70.2
60

63.3

47.5

39.7

36.3
21.0

20

3.7

3.5

2.7

(5.6)

(20)
(60)
(100)

(77.5)
Sterling

US Dollar

Euro

Sales

Japanese Yen

Chinese Renminbi

OtherAdjusted operating profit

Oxford Instruments plc Preliminary Results presentation 2020

1414

FX Sensitivity• Favourable currency impact in FY 2019/20: AOP: +£3.3m• Estimated FY 2020/21 currency impact– Assuming current hedges as at 31/03/20 and no change from 31/03/20 spot
rates, currency sensitivity against FY 2019/20: Revenue: +£6.0m ; AOP:+£2.0m• Transactional & Translational FX sensitivity: FY 2020/21– Assuming current hedges as at 31/03/20 and a 5% strengthening of Sterlingagainst major trading currencies from 31/03/20 spot rates, currency sensitivity
against FY 2019/20: Revenue: (£9.0m); AOP: (£1.5m)• Uncertain volume and timing of shipments and acceptances, currency
mix and FX volatility, may significantly affect full year currency impact
outcomes

Rates assumed 31/03/20 – GBP:USD 1.24; GBP:EUR 1.13; GBP:JPY 134
Oxford Instruments plc Preliminary Results presentation 202015

Finance Summary• Reported revenue and AOP ahead of last year and broadly in line atconstant currency, despite the effect of covid-19 on Q4 trading• Good operating cash conversion of 124% and proceeds from disposals
push net cash up to £67.5m (£70m at the end of May 2020)• RCF undrawn leaving c.£110m of facilities and headroom of c.£205m• Actions to protect cash include PLC Board salary reduction, internal cost
containment measures, suspension of dividend. Dividend will remain
under review as we progress through the year

Oxford Instruments plc Preliminary Results presentation 202016

Operations Review

Ian Barkshire

Oxford Instruments plc Preliminary Results presentation 2020

Group Performance
Materials &Characterisation

Academic: 52%
Commercial: 48%

Research & Discovery

Service & Healthcare• Strong underlying revenue, operating profit and margin growth impacted
by covid-19 disruption• Customer-centric approach supported growth from both commercial
and academic customers• Good underlying order growth across each sector, with strong growth inorder book

• Engagement through technology cycle reduces exposure to marketspecific disruption
Fundamental
Research
Providing solutions tothose exploring new
frontiers down to thenano & molecular level
Physical &Life Sciences

Innovation
approachApplied R&DProductapplication
insight

Our key enabling
technologies andsolutions facilitate thedevelopment of moreadvanced productsHigh Tech
Manufacturing
Marketinsight

Providing products tosupport today’s
manufacturing
challenges & increase
productivity

Oxford Instruments plc Preliminary Results presentation 202018

Group Performance – End Markets

Academic: 52%
Commercial: 48%• Broad and diverse range of attractive end
markets – long term growth drivers

11%• Underlying revenue growth across each of
our chosen customer segments% ofRevenue

23%• Strong growth in Europe and North

America, covid-19 disruption offset growthin Asia

• Market intimacy enabling expansion into

23%

25%

10%
8%

new markets• Provides foundation for navigating postcovid-19 disruption - find additional
positive markets

Oxford Instruments plc Preliminary Results presentation 202019

43% Group revenue
Academic: 45%
Commercial: 55%

Materials & Characterisation
Asylum Research; NanoAnalysis; Plasma Technology

Enabling the fabrication and characterisation of materials and devices down to the atomic scale• Strong underlying revenue and profit growth4%

offset by covid-19• Order growth supported by positive academic
funding• Increased demand across Semiconductor,

37%% ofRevenue

44%Advanced Materials and Energy & Environment• Expansion into new applications offset

14%

continued weakness in silicon semiconductor,
electronics and automotive

Atomic Force Microscope

Material Structural Analyser

1%

Semiconductor Deposition System
Oxford Instruments plc Preliminary Results presentation 202020

Materials & Characterisation
Growth Examples
Semiconductor & Communications• Continued weakness in silicon semiconductor

market leading to reduced sales of imaging andanalysis products
Semiconductor Wafer• Strong growth in compound semiconductors ofour etch and deposition systems• Growth driven by increased demand for

improved connectivity, increased
communications and a greener economy

Charging Devices• Products enabled by our technology include

advanced optical devices, charging solutions forelectric vehicles, power conversion in consumer
electronics
Semiconductor Imaging andProcessing Solutions

Oxford Instruments plc Preliminary Results presentation 202021

Materials & Characterisation
Growth Examples
Advanced Materials• Increasing demand for lighter, stronger, higher
functioning materials

Graphene image• Market drivers include safer vehicles, increased

energy efficiency & reduced materials consumption

Energy & Environment• Growth across energy generation, storage andNext Generation Materials Analyser

battery applications• Industry accreditation drove growth in forensics
marketSolar Cells

Healthcare & Lifescience• Tailoring our existing imaging and analysis

capabilities to address bioimaging applications• Represents opportunity for future growthPollen Sample

Oxford Instruments plc Preliminary Results presentation 202022

40% Group revenue
Academic: 65%
Commercial: 35%

Research & Discovery

Andor Technology; NanoScience & Magnetic Resonance; X-Ray Technology
Advanced solutions that create unique environments and enable measurements down to the molecularand atomic level• Good underlying revenue growth offset by covid19 related shipment & installation delays• Profit growth and margin improvement through27%% ofRevenue

operational gains and commercial practices• Strong growth across Quantum Technology andResearch & Fundamental Science• Healthcare & Lifescience growth offset by decline

8%
6%

17%

in sales of optical microscopy systems

Dragonfly 200

Triton Cryocooler

Benchtop NMR

39%

CameraOxford Instruments plc Preliminary Results presentation 2020

2%

X-ray Tube23Research & Discovery
Growth Examples
Healthcare & Lifescience• Growth drivers include disease detection, newtherapies and improved understanding ofdisease mechanisms

Global Market Drivers
Cell Biology

PersonalisedMedicine

Neuroscience• Strong growth with OEM customers acrossgene sequencing, drug discovery anddiagnostic testing• Products critical in global response tocovid-19• Advanced microscopy solutions remain

Gene Sequencing

fundamental in supporting breakthroughs inhealthcare
Virus Model
Oxford Instruments plc Preliminary Results presentation 202024

Research & Discovery
Growth Examples
Quantum Technology• Increased global investment• Growth in cryogenic and materialanalysis platforms & scientificcameras• New cryogenic platform enabling
increased productivity & scale up

Global Market Drivers
SecureCommunication

QuantumSensors

QuantumComputing

QuantumImaging

Proteox Dilution
Refrigerator

Research & Fundamental Sciences• Increased international funding
supported growth across cryogenics,magnets and scientific cameras
Energy & Environment• Growth into food manufacturing offset
weakness within oil exploration

Surface of the Sun

Food Testing
Oxford Instruments plc Preliminary Results presentation 2020

25

Service & Healthcare

17% Group revenue

Provides customer service and support for our own products and the service and support of third party
MRI scanners in Japan• Transforming our customer service approach product offerings, capabilities and delivery• Improves customer capability and productivity• Strong revenue growth with improved profitability• Service of third party MRI scanners in Japan in

Remote Support

line with previous year

• New practices proved invaluable, supporting ourcustomers through covid-19 disruption

Augmented Reality
SupportRepair,
Maintenance &Consumables

RemoteDiagnostics &Support

Yield
Management &Application
SoftwareTraining &Consultancy

Oxford Instruments plc Preliminary Results presentation 202026

Summary & Outlook• Good progress with Horizon strategy, foundation for long term sustainablegrowth and margin improvement• Living our purpose of facilitating a greener economy, increased

connectivity, improved health and leaps in scientific understanding• Ongoing disruption due to coronavirus with cumulative orders for the firsttwo months of the year 3% below a weak comparator period with revenue
up 3%• Orders in Asia up 19% offsetting reduction of 23% in Europe & 7% in North America• Growth in compound semiconductor solutions offsetting reduction in higher marginscientific cameras & optical microscopy products• Active pipeline but continued disruption across academic institutions• Guidance deferred until later in the year when we anticipate having greater
visibility of forecast trading• Confident that our end markets are resilient and should not be weakened in
the long-term by covid-19 headwinds

Oxford Instruments plc Preliminary Results presentation 2020

2727

Thank you

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 202029