Half YearResultsPresentation
to 30 September 2019

Ian Barkshire
Chief ExecutiveGavin Hill
Biological tissue imaged by Oxford
Instruments microscopy system

Group Finance Director
Oxford Instruments plc Half Year Results Presentation 20191

AgendaHighlights
Finance Review
Operational Review
Summary and Outlook

Oxford Instruments plc Half Year Results Presentation 20192

Highlights• Good progress with the Horizon• Growth in orders and orderbook• Strong underlying revenue &• Improved commercial practices and• Improvement in underlying• Applications focus driving successstrategy

profit growth further supportedby currency
margindespite some softer markets

gains from operational excellence
programmeof recently launched products• New growth opportunities from • Interim dividend increased by 7.9%
academic and commercial
customers

Oxford Instruments plc Half Year Results Presentation 20193

Finance Review

Gavin Hill

Oxford Instruments plc Half Year Results Presentation 20194

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

Reported
Change+13.1%+22.9%

2019/20166.3
25.8(0.4)
25.4

2018/19147.0
21.0(1.2)
19.8

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

(4.8)
(2.6)

(4.7)
(0.6)
(2.9)

Profit before tax

18.0

11.6

+55.2%

Adjusted basic earnings per share
Dividend per share

35.5p
4.10p

27.3p
3.80p

30.0%
7.9%

Constant
Currency
Change+9.1%+12.4%+28.3%

Oxford Instruments plc Half Year Results Presentation 20195Revenue by Sector£m2018/19
Underlying movement
FX
2019/20GrowthReported
Constant currency

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

60.1
7.4
2.3
69.854.3
4.7
2.2
61.2

32.6
1.3
1.4
35.3

147.0
13.4
5.9
166.3

+16.1%+12.3%+12.7%
+8.7%

+8.3%
+4.0%

+13.1%+9.1%

Oxford Instruments plc Half Year Results Presentation 20196

Revenue by Territory: £mGroup Revenue %EuropeNorth AmericaAsia

RoW

27%

32%

40%

1%

66.2
60.8
53.5
44.2

47.2

37.0

2.0
2018/19 2019/20

2018/19 2019/20

2018/19 2019/20

2.4

2018/19 2019/20

Reported growth+19.5%+13.3%+8.9%+20.0%

Constant currency growth+18.4%

+7.8%

+4.3%

+15.0%

Orders*: reported growthOrders*: constant currency growth+25.6%+25.0%+3.2%(2.0%)+2.6%(1.5%)(35.5%)(41.9%)*excludes US Healthcare
Oxford Instruments plc Half Year Results Presentation 20197

Order Book: £m
93.1

91.1

47.1

46.6

41.2

39.3

2018/192019/20

2018/192019/20

2018/192019/20

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

Reported growth+14.3%+2.2%+18.6%+8.9%

Constant currency growth+10.4%+0.7%+13.6%+6.0%

Oxford Instruments plc Half Year Results Presentation 20198

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

Materials &Characterisation

Research &Discovery

Service &Healthcare

Total

9.7
1.6
0.9
12.2

4.8
0.8
0.8
6.4

6.5
0.2
0.5
7.2

21.0
2.6
2.2
25.8

16.1%
17.5%

8.8%
10.5%

19.9%
20.4%

14.3%
15.5%

Oxford Instruments plc Half Year Results Presentation 20199Cash Flow
Working Capital
Outflow: £10.4m (2018: outflow of £1.2m)£31.0mEffective tax rate
20.1% (2018: 21.2%)(£10.4m)(£2.2m)(£2.0m)(£1.6m)Pensions:net asset: £2.6m (31 March 19 net
liability: £6.5m). Includes payment of£2.3m as part settlement of US
termination liabilities.

(£1.1m)(£3.5m)(£6.1m)(£2.2m)

£5.6m

£6.7m

£14.2mCash conversion: 65% (2018: 91%)

Net Debt
31 March18

EBITDA

Working Capitalised Capex
Capital Development

Leaseliabilities

InterestTax

Pensions

Dividend

Other

Net cash
31 March 19

Oxford Instruments plc Half Year Results Presentation 201910

Currency Exposure
200160£m equivalent120

94.1

80
40

38.1
21.1

31.4

19.3

16.7

9.4

0

2.2

0.8
(4.5)

(40)
(80)

(1.2)

(35.2)

SterlingUS Dollar

Sales

EuroJapanese Yen

Chinese Renminbi

Other

Adjusted operating profit

Oxford Instruments plc Half Year Results Presentation 201911

FX Sensitivity• Favourable currency impact in HY 2019/20: AOP: +£2.2m• Estimated FY 2019/20 currency impact: AOP: +£3.0m– Based on applying YTD average rates and the 30/10/19 spot rate for therest of the year
– Average and forecast rates incorporate effect of hedging programme• Transactional & Translational FX sensitivity: FY 2020/21– Assuming current hedges and no change from spot rates (30/10/19),
currency sensitivity against FY 2019/20 forecast: AOP: +£1.0m– Assuming current hedges and a 5% strengthening of Sterling against major
trading currencies from spot rates (30/10/19), currency sensitivity against
FY 2019/20 forecast: AOP: (£2.7m)

Rates assumed 30/10/19 - USD:GBP 1.30; GBP:EUR 1.16; GBP:JPY 140
Oxford Instruments plc Half Year Results Presentation 201912

Finance Summary• Good growth in revenue and profit at reported and constant currency• AOP margin up 40bps at constant currency and 120bps at a reportedlevel• Continuing adjusted basic earnings per share up 30%• Net cash of £14.2m and 7.9% increase to interim dividend

Oxford Instruments plc Half Year Results Presentation 201913

Horizon Update &Operations Review

Ian Barkshire

Oxford Instruments plc Half Year Results Presentation 201914

Group Performance
Materials &Characterisation

Academic: 49%
Commercial: 51%

Research & Discovery

Service & Healthcare• Good progress with Horizon• Strong revenue and profit growth across each of our sectors• Margin growth driven by improved commercial practices and gains
through operational excellence• Order growth and increased orderbook• Engaged through technology cycle, well positioned to benefit fromwaves of commercialisation and market disruption
Fundamental
Research
Providing solutions tothose exploring new
frontiers at thenanoscale
Physical &Life Sciences

Innovation
approach
Product
application
insight

Applied R&D
Our key enabling
technologies andsolutions facilitate thedevelopment of moreadvanced products

MarketinsightHigh Tech
Manufacturing
Providing products to
support today’s
manufacturing
challenges & create
new opportunities

Oxford Instruments plc Half Year Results Presentation 201915Group Performance – End Markets

Academic: 49%
Commercial: 51%• Broad and diverse range of attractiveend markets – long term growth drivers
9%• Strong revenue growth across eachcustomer segment despite challenging
macroeconomic conditions

28%
23%

• Market intimacy enabling expansion

into new markets offsetting softness insilicon semiconductor, electronics andautomotive

10%

22%
8%

• Strong growth across Europe and North
America, with good growth in Asia

• Continued strong growth in China
Oxford Instruments plc Half Year Results Presentation 20191642% 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• Double digit growth in revenue, profit andorderbook; good order growth6%• Adjusted operating margin up 140 bps to 17.5%

38%• Significant sales growth in Advanced Materials

40%• Good growth in Semiconductor and Energy &Environment segments

•

15%
1%

1

• Strong revenue growth from both academic andcommercial customers

Atomic Force Microscope

Material Structural Analyser

Semiconductor Processing System
Oxford Instruments plc Half Year Results Presentation 201917

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

Wind turbine blades• Investment in material science driving improved
performance - broad range of end applications• New products and tailored applications driving ourgrowth

Alloy hip joint• Large sample AFM launched, extends addressable

market to industrial customers and multi-user labs

Thinner aluminium drink cans

Energy & Environment• Growth across energy generation, storage andbattery applications

Large sample AFM
Oxford Instruments plc Half Year Results Presentation 201918

Materials & Characterisation
Growth Examples
Semiconductor & Communications• Continued weakness in silicon semiconductor
market leading to reduced sales of imaging
and analysis products

Semiconductor chip
microstructure• Strong growth in compound semiconductors
for our etch and deposition systems• Tailored product offerings across academic,
corporate R&D and production customers

Semiconductorwafer• Buoyant compound semiconductor market,

long term drivers transforming powerelectronics, connectivity and communications
Semiconductor deposition system
Oxford Instruments plc Half Year Results Presentation 201919

Compound Semiconductors
Drivers & Markets
SiliconSiSiC

HigherPowerSiC

Higher Energy
Efficiency+ 10% range

Emit & Sense
Light

56B

Boron

DRIVERS1314

AlMARKETS
Energy Generation &Storage

31

Ga
Gallium

Si
SiliconAluminium

Power Electronics

CCarbon32

Ge

Germanium

Wider
Temperature
Range
Faster7

N

Nitrogen
15

P

Phosphorous

Communications

33

As

Wireless Communications

Arsenic

LEDs

Fast & Wireless
Charging
Electric & Autonomous
Vehicles(Higher SpeedProcessing)Augmented & Virtual Reality
Connectivity

Data Storage & Processing

5G /IoT

Oxford Instruments plc Half Year Results Presentation 201920

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

Research & Discovery

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

Advanced solutions that create unique environments and enable measurements down to themolecular and atomic level• Strong revenue and double digit profit growth• Growth from academic research communities

24%and commercial customers• Strong growth across Lifescience, Quantum
Technology and Fundamental Science• Underlying order growth offset by phasing of41%
9%
5%
19%

2%

OEM orders for X-Ray Technology business

Microscopy System

Low temperature cryocooler

Benchtop NMR

CameraX-ray Tube

Oxford Instruments plc Half Year Results Presentation 201921

Research & Discovery
Growth Examples
Healthcare & Lifescience• Increasing demand from researchers seeking

Global Market Drivers
Cell Biology

Personalised
Medicine

Neuroscience

to develop new therapies for cancer andneurological disorders• Revenue growth across product portfolio,

attractive market increased competitor activity• Building our capabilities: new software

improves visualisation and statistical analysis

Personalised cancer treatment• Scientific cameras support growth with OEM
customers in gene sequencing, clinicalscreening and drug feasibility studies

Gene sequencing

Oxford Instruments plc Half Year Results Presentation 201922

Research & Discovery
Growth Examples
Global Market Drivers

Quantum Technology• Increased global government andQuantum
Computing

SecureCommunication

Quantum
Sensors

Quantum
Imaging

corporate funding for quantumtechnology• Growth in cryogenic platforms,

material analysis systems and highspeed scientific cameras
Quantum optics

Research & Fundamental Sciences• Growth in demand for high fieldmagnets and research instruments• New large area camera launched tosupport attractive astronomy segment

Earth orbit space debris

Oxford Instruments plc Half Year Results Presentation 201923

Service & Healthcare

21% 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• Good order, revenue & profit growth• Healthcare performance marginally impacted byphasing of system sales• Increased demand for services related to our ownproducts

RegionalServiceProducts• Transforming our customer service approach• Tailoring service products to end market applications

CustomerSegmentsTailoredOfferingsand customer segments
Repair,Maintenance &Consumables

RemoteDiagnostics &Support

Yield
Management &Application
SoftwareTraining &Consultancy

Oxford Instruments plc Half Year Results Presentation 201924

Summary & Outlook• Strong first half performance: revenue, profit and order growthagainst a backdrop of uncertain macroeconomic conditions• Customer centric approach driving growth in existing markets
and expansion into new areas• Portfolio breadth and end market diversity underpin our ability
to deliver further growth and margin improvement• Second half expected to benefit from normal seasonal bias
• Expectations for the current financial year remain unchanged ona constant currency basis

Oxford Instruments plc Half Year Results Presentation 201925

Questions

Oxford Instruments plc Half Year Results Presentation 201926

Oxford Instruments’ Operating Model

Oxford Instruments plc Half Year Results Presentation 201927

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 Half Year Results Presentation 201928