Preliminary Results Announcement
2012/13

The Business of Science®

11 June 2013
Jonathan Flint
Chief Executive

Kevin Boyd
Group Finance Director

11 June 2013

© Oxford Instruments 2013

AgendaThe Business of Science®

• Financial Review• Strategy and Operations• Outlook© Oxford Instruments 2013

The Business of Science®

Financial Review
Kevin Boyd

© Oxford Instruments 2013

Highlights
The Business of Science®

2012/13

2011/12

ChangeRevenues (£m)

350.8

337.3

4.0%

Operating profit (£m)

49.7

42.1

18.1%

Return On Sales (%)

14.2%

12.5%

+1.7ppAdjusted PBT(£m)*

48.2

42.0

14.8%

Adjusted EPS (pence)*

68.3

61.6

10.9%

Dividend (pence)

11.2

10.0

12.0%

Net Cash (£m)

39.2

35.1

4.1

*Adjusted numbers are stated to give a better understanding of the underlying business.
Details of adjusting items can be found in Note 1 of the Financial Statements.

© Oxford Instruments 2013

Segmental Split
The Business of Science®

NanoTechnology
Tools

£m

2012/13

2011/12

Industrial
Products
2012/13Service

2011/122012/13

2011/12

Total*
2012/13

2011/12Segment orders

166.6 158.5

102.2 123.4

66.9

58.3

334.0 337.8

Segment revenue

166.1 153.9

125.1 129.1

60.6

56.3

350.8 337.3

Operating profit

20.8

17.4

11.5

11.0

49.7

Return on sales

17.3

42.1

12.5% 11.2% 13.9% 10.7% 19.0% 19.5% 14.2% 12.5%*excluding inter-segmental orders and revenues© Oxford Instruments 2013

13.8

Sales Bridge
The Business of Science®

337.3

400(6.0)

5.0

14.5

350.8

350300

£m

250
200
150
100
500

2011/12© Oxford Instruments 2013

VolM&A

Fx2012/13

Sales by Geography
The Business of Science®

Asia
35.1%

2012/13

2011/12

Rest ofWorld
3.0%

Rest ofWorld
3.8%

Europe36.0%

NorthAmerica
25.9%© Oxford Instruments 2013

Asia
33.8%

Europe34.2%

NorthAmerica
28.2%

Revenue by Market Segment 2012/13
The Business of Science®

Energy8%
Semicon/IT
10%

Metals &Construction
15%

Environment
7%© Oxford Instruments 2013

Research andAcademia
41%Life Sciences
19%Orders & Orderbook
The Business of Science®

180.0
160.0
140.0
£m

120.0
100.0
80.0
60.0
40.0
20.0
-

2011/12 Orders
2012/13 Orders
Orderbook @ Mar 13

Nanotechnology
Tools
158.5
166.6
73.9

2011/12 Orders© Oxford Instruments 2013

Industrial
Products
123.4
102.2
23.3

2012/13 Orders

Orderbook @ Mar 13Service
58.3
66.933.6

Profit Bridge
The Business of Science®

4.8

60.0

6.4
50.0

42.0

£m40.030.0

20.0

10.00.0© Oxford Instruments 2013

1.1(0.3)

(4.4)
(1.4)

48.2

Efficiencies
The Business of Science®

200.0

1.80

180.0

1.60
1.40

£'000

160.0

1.20
140.0
1.00
120.0

0.80

100.0

0.60

80.0

0.40
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

Sales/employee© Oxford Instruments 2013

Value Add Index

Cash
The Business of Science®

£m58.2100.0

1.4(2.9)

(8.4)
(4.6)

90.0
80.0

(5.3)

(8.4)
(20.3)

70.0
60.0
50.0

(5.6)
35.1

40.0
30.0
20.0
10.00.0© Oxford Instruments 201339.2

Pensions
The Business of Science®

£mMar-06

Mar-07Mar-08Mar-09Mar-10Mar-11Mar-12

173.1

180.2

Mar-13

250
200
150

127.4

135.1

139.8

(30.8)(21.2)

157.6

198.0

125.0

100
500
-50

(11.7)(14.4)(35.1)(53.4)(35.2)(47.9)

-100
-150
-200

(139.4)(180.8)(165.9)(161.0)(192.7)(184.8)(215.4)-250-300© Oxford Instruments 2013(245.9)AssetsLiabilities

DeficitSales Progress
The Business of Science®

£m
400.0

14 Cubed
15.6% CAGR

7 years
14.7% CAGR
13.3% Organic CAGR

350.0
300.0
250.0

5 year plan
14.4% CAGR

200.0
150.0
100.0
50.00.0
2005/06© Oxford Instruments 2013

2006/07

2007/08

2008/09

2009/102010/112011/122012/13

Profit & Margin Progress
The Business of Science®

£m
16.0%

60.0

14.0%
50.0
12.0%

Operating Profit
Operating Profit %

40.0

10.0%
8.0%

30.0

6.0%
20.0
4.0%
10.0
2.0%
0.0%

0.0
2005/06© Oxford Instruments 2013

2006/07

2007/08

2008/09

2009/102010/112011/122012/13

The Business of Science®

Strategy and Operations
Jonathan Flint© Oxford Instruments 2013

The Business Model
The Business of Science®

• Nanotechnology• Tools• Global Trends
Oxford Instruments NanoProbe

Emerging
MarketsNewMaterials

High Tech
Healthcare

Environment

New Sourcesof Energy
Oxford Instruments etch & deposition tool
© Oxford Instruments 2013

Our Businesses
The Business of Science®

Nanotechnology
tools

IndustrialProducts

Service• NanoAnalysis• Industrial Analysis• OiService CT & MR

• Omicron NanoScience• Industrial Components• OiService - own products• Plasma Technology© Oxford Instruments 2013

Market MapThe Business of Science®

Nanotechnology Tools
Area

TechniqueNano-Materials

EDS/EBSD
AFM
SPM & CryoAppliedResearchService

Low Volume Industrial

Aftermarket

NanoAnalysis
Asylum
OION

SNMR
OES
X-ray
MRI

NanoFabrication

AcademicResearch

Industrial Products

Compound Semiconductors
DSE© Oxford Instruments 2013

Industrial
Products
Plasma Technologyerv
iceNanoTechnology Tools
High-performance technology products for research and industry£m2013

2012

Revenue

166.1

153.9

Profit20.8

17.3

Rest ofWorld 4%
NorthAmerica
19%

Semicon/IT
16%

The Business of Science®

Energy 2%

Metal &Construction
5%

Environment8%Life ScienceAsia 38%

Europe 39%
Research andAcademia 69%© Oxford Instruments 2013

NanoTechnology Tools
The Business of Science®

• Triton® in Quantum•••

Computer sold to Google
X-Max® analyses meteorite
Mapping properties ofgraphene by AFM
Maximising economic
extraction of minerals© Oxford Instruments 2013

Industrial Products
Analytical systems for Quality Control, Environmental and Compliance Testingfor industry and research, and high technology components£m2013

2012

Revenue

125.1

129.1

Profit17.4

13.8

ROW 2%

Energy 18%

NorthAmerica
29%

The Business of Science®

Research andAcademia 8%

Life Sciences
31%
Semicon/IT 4%

Asia 32%© Oxford Instruments 2013

Europe37%

Metal &Construction
33%

Environment
6%

Industrial Products
The Business of Science®

• Extended range of X-METanalysers• On the Mars Curiosity rover• Fashion industry QA• Testing quality of sound© Oxford Instruments 2013

ServiceService, support, training, refurb, consumables, accessories

USA
Spares15%£m2013

2012

Revenue

60.6

56.3

Profit11.5

11.0

Ondemand
36%

China

Ondemand21%

Spares56%

Contracts49%© Oxford Instruments 2013

Contracts Contracts
23%
24%

The Business of Science®

GermanySpares17%

Ondemand59%

ServiceThe Business of Science®

• Strong performance by•© Oxford Instruments 2013

CT & MRI business
Emerging markets offer
opportunities for growthMarket Map
AreaTechniqueNano-Materials

The Business of Science®

EDS/EBSD
AFM
SPM & Cryo
NMR
OES
X-ray
MRI

Nanotechnology Tools
Academic
AppliedResearchResearch

Industrial Products
Low Volume In-line/AutoLow Volume Industrial
Industrial
Industrial

NanoAnalysis
AsylumOION

Adjacent
NanoMarket #1 Fabrication

Technique 4
Technique 5
Technique 6© Oxford Instruments 2013

Aftermarket

SIndustrial
Products

Technique 1
Technique 2
Compound Semi
DSE
Technique 3

Service

Plasma TechnologyerviceStrategic Aims
The Business of Science®

• 14 Cubed• Average compound annual growth rateof 14% and Return on Sales of 14% by2014• The next steps….

© Oxford Instruments 2013

Outlook
The Business of Science®

• Focus on completing 14 Cubed Plan despite
slow start to the new year
• Strong new product pipeline• Diversity and brand strength supports strategy• Continued growth in emerging markets• Targeting growth both organically and throughbolt-on acquisitions© Oxford Instruments 2013

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 2013