Preliminary Results
To 31st March 2016

The Business of Science®

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

Page 1

AgendaThe Business of Science®

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

Page 2

Operating Highlights
The Business of Science®

• Profits in line with expectations• Improved profit performance in NanoTechnology
Tools and Service sectors; Industrial markets weresoft• Margin improvement• Cost reduction delivered operational benefits• Active management of portfolio• Improved Order Book
© Oxford Instruments 2016

Page 3

The Business of Science®

Financial Review
Gavin Hill

© Oxford Instruments 2016

Page 4

Income Statement
The Business of Science®

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

2015/16
361.6
44.6
(7.6)
37.0

Reported
2014/15
Change
380.1
-4.9%
42.8
4.2%
(7.1)
35.7
3.6%

Amortisation of acquired intangibles
Non-recurring and acquisition related items
Mark to market of currency hedges
Profit before tax(16.7)
(4.5)
(2.7)
13.1

(21.7)(18.8)(4.8)(9.6)

Adjusted basic earnings per share
Dividends per share

49.2p
13.0p

48.4p
13.0p

Organic
at CC*
Change-5.7%
0.2%
-1.1%

1.7%

*At constant currency© Oxford Instruments 2016

Page 5

Revenue Bridge
The Business of Science®

£m400

10.9

380.1

(11.6)

(0.2)

(8.3)

(9.3)

361.6

350

300

250

200

150

10050

2014/15© Oxford Instruments 2016

FxVolumePrice

Wire/MRI
contract

M&A

2015/16

Page 6

Revenue by Sector
The Business of Science®

£m

NanoTechnology
Tools

Industrial
ProductsServiceTotal*

2014/15
Organic
FX
Wire/MRI Contract
M&A
2015/16211.2(4.4)
4.2
0.0(23.4)
187.6

104.1
(5.3)
4.4(6.6)
0.0
96.6

66.2
(2.5)
2.3(1.7)
14.1
78.4

380.1
(11.6)
10.9
(8.3)
(9.3)
361.8

GrowthReported
Organic (CC**)-11.2%-2.5%-7.2%-11.4%

18.4%
-6.5%

-4.8%
-5.7%

*Excluding inter-segment revenues**At constant currency© Oxford Instruments 2016

Page 7

Revenue by Territory
The Business of Science®

Europe27.8%

Group
Revenue %North America
35.3%
129.2

128.4

Asia
34.8%
128.8

ROW
2.1%

125.1

115.2
100.4

20152016

20152016

2015

2016

6.9

7.72015

2016

Reported Growth-12.8%

-0.6%

-2.9%

+11.6%

Organic (CC) Growth-0.3%-16.9%+2.2%-19.1%© Oxford Instruments 2016

Page 8

Organic Order Book Growth
The Business of Science®

£m140.4

145

+12%

140
135

125.2

130125
120
115
110
105
100
March 2015

© Oxford Instruments 2016

March 2016

Page 9Adjusted PBT Bridge
The Business of Science®

£m

40

3.3
35.7(5.3)

37.0

9.4

35(3.6)30(0.8)

(0.2)

(1.0)

(0.5)

25
20
151050© Oxford Instruments 2016

Page 10Adjusted Operating Profit bySector

The Business of Science®

NanoTechnology
Tools

IndustrialProducts

ServiceTotal

2014/15
Organic
FX
Acquisitions
2015/16

20.7
2.4(1.3)
(0.5)
21.3

6.4
(2.6)
0.7
0.0
4.5

15.7
(0.5)
(0.2)
3.8
18.8

42.8
(0.7)
(0.8)
3.3
44.6

EBIT Margin
2014/15
2015/16

9.8%
11.4%

6.1%
4.7%

23.7%
24.0%

11.3%
12.3%

£m

© Oxford Instruments 2016

Page 11Cash Bridge
The Business of Science®
£m

7.3

70(2.7)(8.2)

55.0(6.7)60(3.5)(5.6)

50(4.7)(0.4)

40(7.6)(32.2)

3020(9.3)

100(10)Net Debt: £128.2 million (2015: £118.9 million)
Net debt to EBITDA: 2.3 x
EBITDA to interest: 9.6 x© Oxford Instruments 2016

Page 12

The Business of Science®

Operational Review
Ian Barkshire© Oxford Instruments 2016

Page 13Our Businesses
The Business of Science®

NanoTechnology Tools

Industrial Products

ServiceHigh-performancetechnology products

Analytical instruments
and high technology
components

Service, repairs, spare parts,
training, sale and rental ofrefurbished MRI and CT• NanoCharacterisation• NanoSolutions• Industrial Analysis• Industrial Components• OiService - own products• OI Healthcare© Oxford Instruments 2016

Page 14

End Market Segments
The Business of Science®

GroupNanoTechnologyTools

1%1%

7%

Industrial Products
4% 3%

9%

8%
2%

3%
4%

15%
39%
4%

33%

42%

22%
61%

10%

10%

© Oxford Instruments 2016

14%

8%

Page 15

NanoTechnology Tools
The Business of Science®

© Oxford Instruments 2016

Page 16

NanoCharacterisation
The Business of Science®

Our microscopy businesses, serving both physical and life science markets.
Comprises NanoAnalysis, Andor Technology and Asylum Research.

Current Performance• NanoAnalysis very strong in its end markets; delivering goodcommercial and technical results• Andor continues to show growth; delivering good performance• Asylum Research AFMs continue to take market share• Product launches included X-Max Extreme, AZtecOne and the iKon XLMarket Position• Leading market share in Andor and NanoAnalysis• Technology leadership in all businesses© Oxford Instruments 2016

Page 17

NanoSolutions
The Business of Science®

Characterised by low volume, high value, often bespoke products selling to thescientific research community in both academia and industry. Comprises
NanoScience, Plasma Technology and the Scienta Omicron JV.

Current Performance••••

NanoScience launch of Triton, critical for Ultra Low Temperature work
Further orders for GE SPINlab collaboration
Plasma is showing good progress; still some work to be done
Scienta Omicron Joint Venture making progress towards profitability

Market Position• NanoScience & Scienta Omicron – strong technical and brandposition in niche markets• Plasma Technology – strong technical and brand position in theresearch semiconductor market© Oxford Instruments 2016Page 18Industrial Products
The Business of Science®

Image: CERN

© Oxford Instruments 2016

Page 19

Industrial Analysis
The Business of Science®

Designs and sells a range of products that make material analysis easy andreliable, combining sophisticated nano-scale analysis with ruggedness andsimplification.

Current Performance• Improved profitability despite challenging end markets• X-MET8000 continues to gain market share• Sales and distribution networks strengthened• Foundry-Master Smart well received

Market Position• Best performing hand held XRF product• Unique laser and x-ray technology in one Portfolio• Focus on product portfolio to maximise potential returns© Oxford Instruments 2016

Page 20

Industrial Components
The Business of Science®

Provides key technological components to other parts of OI and thirdparties. Comprises our Superconducting Wire and X-ray Technologybusinesses.

Current Performance• Performance affected by structural change in MRI superconducting wiremarket• X-ray Technology impacted by softening in industrial end markets• Non-core Austin business disposed in the year

Market Position• Strong capability in a difficult superconducting wire market• Leading position in niche x-ray tube market• Leading technology and position for large international projects© Oxford Instruments 2016

Page 21

ServiceThe Business of Science®

© Oxford Instruments 2016

Page 22

ServiceThe Business of Science®

Comprises the Group’s maintenance service contracts, spare part sales of Oxford
Instruments equipment and the servicing of third party MRI and CT machines
under the OIHealthcare brand.

Current Performance• Acquisition of MIR progressing according to plan
• Record revenues in Japan• Increase in demand for service of own products

Market Position• Strength and reputation for customer service key to brand• Attractive growth opportunities© Oxford Instruments 2016

Page 23

Summary
The Business of Science®

• Improved profit performance in NanoTechnology
Tools and Service sectors• Soft Industrial markets• Margin improvement• Cost reduction delivered operational benefits• Active management of portfolio• Improved Order Book
© Oxford Instruments 2016

Page 24

Outlook
The Business of Science®

• Revenue for first two months of trading in line with lastyear; profits marginally ahead• We remain focused on new product development,
customer service and cost optimisation and expect tomake progress in the year

• Increasing role of nanotechnology will continue to yieldlong term structural growth in demand for hightechnology tools© Oxford Instruments 2016

Page 25

The Business of Science®

Questions?
© Oxford Instruments 2016

Page 26

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
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 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.
All information in the presentation is the property of Oxford Instruments plc.

© Oxford Instruments 2016Page 27