Oxford Instruments plc

Half Year Results Announcement
to September 30th 2009

Jonathan Flint – Chief Executive
Kevin Boyd - Group Finance Director
November 17th 2009
© Oxford Instruments 2009

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Oxford Instruments plcContents• Highlights• Financial Review• Operational Review© Oxford Instruments 2009

Jonathan Flint
Kevin Boyd
Jonathan Flint

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Oxford Instruments plc

Half-Year Overview• Order intake £133.9m• Revenues unchanged at £92.8m• Trading Profit up to £4.1m• Operating cash flow increased by £7.9m• Adjusted EPS up to 4.1 pence• Interim Dividend unchanged at 2.4 pence© Oxford Instruments 2009

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Progress against plan
• Management actions protected margins• Growth in profits• Increased efficiencies across the Group• Well positioned to meet targets as markets
improve© Oxford Instruments 2009

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Highlights – Our Markets• Order intake reached record levels• Research markets remain buoyant• Modest recovery in industrial markets in secondquarter• Continuing programme of product introductions
taking market share• Pricing levels maintained through competitive
advantage© Oxford Instruments 2009

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Highlights - ITER
• £40 million order to supply 67 tonnes ofsuperconducting wire to the ITER project• Deliveries phased over 3 years commencing firsthalf 2010

© Oxford Instruments 2009

Proposed
ITER site 2018

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Highlights – Business Efficiency• Continued focus on cash
generation• Efficiency and productivity
measures in place• First half cost reduction of£5.3m© Oxford Instruments 2009

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Structure
Oxford Instruments plc

Nanotechnology Tools© Oxford Instruments 2009

IndustrialProducts
Products
Industrial

Service

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Structure
Oxford Instruments plc

Service

Nanotechnology Tools

IndustrialProducts
Products
Industrial

NanoScience

Industrial Analysis

MRI Service

NanoAnalysis

Magnetic Resonance

Austin ScientificPlasma Technology

Superconducting Wire

Service elements of othertwo sectors© Oxford Instruments 2009

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Financial Review
Kevin Boyd
Group Finance Director© Oxford Instruments 2009

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Financial Highlights
2009/10£mOrders
Revenues
Gross profit

2008/09
£m

133.9
92.8
39.1

97.5
92.8
38.2

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

4.1
(1.3)
2.8(2.2)(0.4)
5.5
5.7(1.6)
4.1

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

Adjusted EPS (pence)
EPS (pence)

4.1
8.3

3.4
2.6

© Oxford Instruments 2009

GrowthOrders
Sales
Profit

37%
0%
17%

GM%
TM%
TM% ex hedging

09/10
42.1%
4.4%
7.4%

08/09
41.2%
3.8%
4.8%

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Segment Performance
Nanotechnology
Tools
H1 09/10 H1 08/09£m£m

Service

H1 09/10 H1 08/09£m£m

H1 09/10 H1 08/09£m£m

External revenue
Inter-segment revenue
Sector revenue

43.3
0.2
43.5

39.7
0.2
39.9

30.8
0.1
30.9

35.8
0.2
36.0

Trading profit/(loss)

2.1

2.2

(0.7)

Return on sales

4.8%

5.5%

-2.3%

© Oxford Instruments 2009

Total

Industrial Products

18.7

H1 09/10£m

H1 08/09
£m

92.8

92.8

18.7

17.3
0.1
17.4

92.8

92.8

(1.1)

2.7

2.4

4.1

3.5

-3.1%

14.4%

13.8%

4.4%

3.8%

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Sales Bridge
12.3120(12.3)
92.8

92.8
10080

£m60

40

200
2008/09© Oxford Instruments 2009

FXVol

2009/10The Business of Science®

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Profit Bridge£mEffi© Oxford Instruments 2009

ciencies
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Cash£m© Oxford Instruments 2009

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IAS 19 Pension© Oxford Instruments 2009

£mMar-09

Sep-09AssetsLiabilities
Deficit125.0(139.4)(14.4)

147.5(176.8)(29.3)The Business of Science®

Oxford Instruments plc

Orders
140.0
120.0
100.0
80.0

Sales

£mOrders

60.0

Orderbook

40.0
20.0
‐
H1 2008/09© Oxford Instruments 2009

H1 2009/10

H1 2009/10 ex ITER

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Progress against plan - Sales
120.0

100.0

80.0

£m60.0

40.0

20.0

0.0
H1

H2

H1

H2

H1

H2

H1

H2

H1

2005/06

2005/06

2006/07

2006/07

2007/08

2007/08

2008/09

2008/09

2009/10© Oxford Instruments 2009

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Progress against plan – Trading Profit
10.0
9.0
8.0
7.0
6.0

£m5.0
4.0
3.0
2.0
1.0
0.0
H1

H2

H1

H2

H1

H2

H1

H2

H1

2005/06

2005/06

2006/07

2006/07

2007/08

2007/08

2008/09

2008/09

2009/10(1.0)© Oxford Instruments 2009

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Operational Review

Jonathan Flint
Chief Executive© Oxford Instruments 2009

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Nanotechnology Tools

NanoAnalysis –Systems for materials analysis at the nano-scale• Signs of recovery after market
softness in first half
• X-Max large area silicon drift
detector is market leader in allterritories• X-Max for high performanceelectron microscopes launched© Oxford Instruments 2009

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Nanotechnology Tools

Plasma Technology – Tools for nanotechnology fabrication• Strong performance• Research markets robust• Opportunities in emerging
markets• Continued growth in HBLED andsolar cell technology markets© Oxford Instruments 2009

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Nanotechnology Tools

NanoScience – Environments for nanotechnology research• Continued improvement• Increased funding worldwide for leadingedge nanotechnology research• Innovative Cryogen free technology• Triton™200 – new tool for working atultra low temperatures© Oxford Instruments 2009

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Industrial Products

Industrial Analysis – Tools for QC, Environmental and Compliance Testing• Improved efficiency andproductivity• Signs of recovery indemand• Opportunities in emerging
markets• New product introductions© Oxford Instruments 2009

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Industrial ProductsMagnetic Resonance – Benchtop NMR for industrial applications• Good performance• Successful restructuring
programme• Broad applications for Benchtop
NMR including, oil in sunflower
seeds and rock core analysis© Oxford Instruments 2009

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Industrial ProductsSuperconducting Wire – leading provider of superconductors
for MRI and research• Weak MRI Q1, some recovery
in Q2• ITER• Manufacturing facility upgrade© Oxford Instruments 2009

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Oxford Instruments plcServiceService• MRI Service continues toperform well in USA andJapan• Launch of remotemonitoring systems formaintenance of cryopumps
and compressors• New service branding inplace across the Group© Oxford Instruments 2009

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Sustainability Programme• Range of products to support
environmental impact reduction
programmes and compliance withenvironmental legislation• Substantial improvements in energy
consumption and carbon footprint
around the Group• FTSE Green Index – one of top 30 UK‘green companies’© Oxford Instruments 2009

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Oxford Instruments plcOutlook•••••Research markets remain robust
Improving industrial marketsContinued focus on cash
New Product Introduction programmes in place
Restructured business well positioned to exploit market recovery“Despite the continuing difficult market environment, the current trading conditions,
together with the benefits of our efficiency actions and our ongoing programme of new
product introductions mean that the Board remains confident that the performance for thefull year will be in line with its expectations.”© Oxford Instruments 2009

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Disclaimer
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 orreproduction, in whole or in part, to any persons outside the jurisdiction of this Act. The Company, its Directors,employees, agents or advisers do not accept or assume responsibility to any other person to whom this presentation isshown 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 2009

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Appendix© Oxford Instruments 2009

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Fx rates (2010/11 – hedged/spot)© Oxford Instruments 2009

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Reconciliation 2008/09 to New Segment ReportingStructure
Half Year to 30 September 2008 (£m)

Revenue

Nanotechnology
Tools

Industrial
Products

Service

Intersegment
Elimination

Total

Analytical

32.1

21.3

9.9-

63.3

Superconductivity

7.8

14.7

7.5

(0.5)

29.5

39.9

36.0

17.4

(0.5)

92.8

Total

Nanotechnology
Tools

Industrial
Products

Service

Intersegment
Elimination

Analytical

4.2

(0.4)

1.6-

5.4

Superconductivity

(2.0)

(0.7)

0.8

-

(1.9)

2.2

(1.1)

2.4-

3.5

Trading profit© Oxford Instruments 2009

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Reconciliation 2008/09 to New Segment Reporting
Structure
Year to 31 March 2009 (£m)

Revenue

Nanotechnology
Tools

ServiceIntersegment
Elimination

Industrial
Products

Total

Analytical

71.1

42.4

21.2-

134.7

Superconductivity

23.1

33.1

16.7(1.1)

71.8

94.2

75.5

37.9

(1.1)

206.5

Nanotechnology
Tools

Industrial
Products

Service

Intersegment
Elimination

Total

Analytical

8.9

(1.3)

3.5-

11.1

Superconductivity

(0.3)

-

2.3-

2.0

8.6

(1.3)

5.8-

13.1

Trading profit© Oxford Instruments 2009

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