Half Year resultspresentation
to 30 September 2021

Ian Barkshire
Chief Executive
Gavin Hill
Group Finance Director

AgendaHighlights
Finance Review
Strategic Progress
Sustainability Update
Operational Review
Summary and Outlook

Oxford Instruments plc Half Year Results presentation 2021

2Highlights•Strong financial performance reflecting leading position in attractive,
structural growth markets•

Buoyant semiconductor, advanced materials and quantum markets,and recovery in life science•

Double digit order growth from commercial and academic customers, andin Europe, North America and Asia•

Strong revenue growth despite some ongoing covid-related constraints,
particularly in Europe•

Horizon progress supporting growth and enhanced margin, despite
inflationary pressures and continued investment in the future•

Increased R&D investment and acquired WITec, supporting future growth•

Strengthened order book provides evidence of strong market positioning

Oxford Instruments plc Half Year Results presentation 2021

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Finance Review

Gavin Hill

Oxford Instruments plc Half Year Results presentation 2021

Income Statement£m
Revenue
Adjusted operating profit
Amortisation of acquired intangibles
Non-recurring items
Mark-to-market of currency hedges
Statutory operating profit
Net finance costs
Adjusted profit before taxation
Statutory profit before taxation

Organic CC
Reported Organic CC
Change vs2021/22 2020/21 Change
Change
2019/20170.1
140.3+21.2%+26.8%+13.5%
30.6
24.3+25.9%+28.0%+17.6%
(3.8)
(4.3)
(1.2)
(3.8)
0.8
21.8
20.8
+4.8%
(0.4)
(0.6)
30.2
23.7
+27.4%
21.4
20.2
+5.9%

Adjusted effective tax rate

21.5%

20.7%

Adjusted basic earnings per share
Dividend per share (interim)

41.2p
4.4p

32.8p4.1p+25.6%+7.3%

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Revenue by Sector£170.1m+21.2%2 reported+26.8%2 organic CC£140.3m
Materials &Characterisation+34.2%1

Research &Discovery+23.2%1

Service &Healthcare+15.3%1

HY 20/21

Acquisitions+1.3%2Currency(6.8)%2HY 21/22

1 Organic constant currency (CC) growth rate compared to prior year sector revenue
2 Growth rate compared to prior year Group total revenue

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Revenue and Orders by Region
RevenueRoWreported constant currency +19%

2%

51%

23%

Order growth

Europereported (3)%constant currency (1)%

North America
reported +6%
constant currency +15%
Asia
reported +17%
constant currency +25%

£170.1m24%

Asiareported +37%
constant currency +44%

Europereported +16%
constant currency +20%

North America
reported +22%
constant currency +33%

RoW
reported (46)%constant currency (34)%Book-to-bill ratio
HY21: 117%
HY20: 125%
Oxford Instruments plc Half Year Results presentation 2021

7Order Book by Sector
Materials &Characterisation£99.3m+25.9%1

Research &Discovery£98.7m(1.5)%1Service &Healthcare£33.6m+33.8%1£231.6m+13.2%2 reported+13.3%2 organic CC£204.6m

HY 20/21

HY 21/22

1 Organic constant currency (CC) growth rate compared to prior year sector revenue
2 Growth rate compared to prior year Group total revenue

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Adjusted Operating Profit by Sector£30.6m+25.9%2 reported+28.0%2 organic CC£24.3mService & Acquisitions+0.8%2Healthcare
1+4.4%
Research &Discovery+40.6%1Currency(2.9)%2Material &Characterisation
margin HY21: 15.3%
margin HY20: 13.7%

Materials &Characterisation+42.7%1

Research & Discovery
margin HY21: 15.5%
margin HY20: 13.3%
Service & Healthcare
margin HY21: 30.8%
margin HY20: 33.6%
Groupmargin HY21: 18.0%
CC margin HY21: 17.4%
margin HY20: 17.3%

HY 20/21

HY 21/22

1 Organic constant currency (CC) growth rate compared to prior year sector adjusted operating profit
2 Growth rate compared to prior year Group total revenue

Margin is calculated as adjusted operating profit divided by revenue
Margin at constant currency (CC) is defined as adjusted operating profit at constant currency divided by revenue at constant currency
Oxford Instruments plc Half Year Results presentation 2021

9Cash Flow
Cash conversion
48%
HY20: 97%

Working capitaloutflow£14.2m
HY20: £3.0m
outflow

Adj effective tax
rate1
21.5%
HY20: 20.7%

Workingcapital
Lease
payments Tax

EBITDA

Capex &capitalised
development
costs

Capex
£5.5m
HY20: £1.1m

Pension asset£25.0m
FY21: £16.3m

Acquisitions
Pensions

Acquisitions£30.0m
HY20: Dividend

FX,Interest& otherDividend£2.4m
HY20: -Capitalised
developmentcosts£0.2m
HY20: £0.5m

Net cash including
lease liabilities£57.2m
YE21: £90.1m£97.6mnet cash
YE 20/21£70.1mnet cash
HY 21/22

1 Full year 2021/22 adjusted effective tax rate expected to be 22.4%

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Currency Exposure

Adjusted Operating Profit(£m equivalent)

Revenue (£m equivalent)
Sterling£45m

US Dollar

Sterling£78m

Euro£29m

Japanese Yen£15m

ChineseRenminbi£2m

Other£0m£(14)m

US Dollar

£22m

Euro

£14m

Japanese Yen£8m

Chinese Renminbi
Other£0m£(1)mOxford Instruments plc Half Year Results presentation 202111FX Sensitivity••Adverse currency impact in HY21: Revenue: (£9.6m) ; AOP: (£0.7m)
Estimated Full Year 2021/22 currency impact– Assuming current hedges and no change from current spot rates,
currency sensitivity vs FY21: Revenue: (£17.0m); AOP: (£1.8m)•

Estimated Full Year 2022/23 currency impact– Assuming no change from current rates, currency sensitivity before
mitigating actions vs FY22: Revenue: £-m; AOP: (£5.7m)– This does not affect the underlying growth of the Group and is prior
to mitigating actions•Currency headwind guidance is lower than given at the previous year
end owing to favourable currency movements•

Uncertain volume and timing of shipments and acceptances,currency mix and FX volatility, may significantly affect full year
currency impact outcomes

Current rates – GBP:USD 1.38; GBP:EUR 1.18; GBP:JPY 156
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Finance Summary• Strong growth in orders and order book with a book-to-bill of117%. Supply chain disruptions and export licence delays willaffect the timing of order conversion to revenue• Continued investment to support future growth and an uplift inadjusted operating margin to 18%• Adjusted EPS growth of 25.6% and increase in interim dividend of7.3%• Cash conversion reflects business growth and increase ininventories to mitigate supply chain challenges• Net cash of £70.1m after initial consideration for WITec GmbH;strong balance sheet supports future growth through organic
investment and acquisition opportunities
Oxford Instruments plc Half Year Results presentation 2021

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Operations Review

Ian Barkshire

Oxford Instruments plc Half Year Results presentation 2021

Horizon Strategy Progress•

Horizon progress underpinned strong financial performance•

Creating value by exploiting synergies across the Group•

Heightened focus on, and intimacy with, attractive end markets withpositive long-term structural growth drivers•

Increased investment in product development, delivering sustainabledifferentiation•Progress with operational excellence programme; service
transformation enhancing customer value and supporting growth•

WITec strengthened product portfolio with complementary products•

Significant opportunities for further gains from Horizon
MarketIntimacy

Innovation &ProductDevelopmentCustomer
SupportOperational
Excellence

Oxford Instruments plc Half Year Results presentation 202115

Shaping a sustainable future•

Our purpose to enable a greener, healthier, moreconnected advanced society puts us at the heart ofglobal sustainability initiatives•

Our greatest contribution to net zero is throughenabling new technologies•

Executing on our sustainability agenda– Reducing our manufacturing environmental footprint– Developing our long-term ambitions– Enhanced employee and wider stakeholder
engagement– Embracing a hybrid workplace model– Sir Nigel Sheinwald new sustainability committee chair•

Sustainability and TCFD statements to be published in2022 alongside our annual report
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Group Performance
Materials &Characterisation

Academic: 50%
Commercial: 50%

Research & Discovery

Service & Healthcare•

Strong year-on-year constant currency order, revenue and profit
growth, with strong progress relative to 2019•

Significant order growth to commercial customers in line with ourstrategy, strong growth to academia•

Strong revenue growth despite ongoing covid restrictions•Margin progression despite some inflationary headwinds•

Range of attractive end markets and exposure to full technology
cycle support future growth and resilience
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 and solutions
facilitate the developmentof more advanced
products

MarketinsightHigh Tech
Manufacturing
Providing products to
support today’s
manufacturing
challenges & increaseproductivity

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Group Performance – End Markets•••

Broad range of attractive end markets withrobust structural growth drivers
Order and revenue growth supported bybuoyant semiconductor, quantum andadvanced materials markets
Strong recovery from life science market,
orders ahead of 2019

•Double digit order growth in Europe, North
America and Asia, and also relative to 2019

•Covid-related disruption, supply chain
challenges and delayed export licences
impacted revenue•

Strong revenue growth in North America andAsia, with Europe behind previous year

5%30%

19%% ofRevenue
8%

31%
7%

Oxford Instruments plc Half Year Results presentation 2021

18Materials & Characterisation

50% Group revenue
Academic: 39%
Commercial: 61%

Asylum Research; Magnetic Resonance; NanoAnalysis; Plasma Technology; WITec•

Enabling the fabrication and characterisation of materials and devices down to the atomic scale

Double digit order and revenue growth; up on
2019, driven by:

4%– Commercial customers, supported by academia– Buoyant semiconductor, advanced materials, life
science and energy & environment markets– Order growth across Europe, North America & Asia
– Revenue growth North America and Asia; Europe
behind comparative period

32%% ofRevenue

51%

12%1%

• WITec brings complementary Raman
microscopy

Semiconductor
Deposition SystemBenchtop
NMR

Atomic ForceMicroscope

Material StructuralAnalyser

Confocal Raman
Imaging

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Materials & Characterisation
Growth Examples
Semiconductor & Communications•Structural growth drivers - higher performing
and energy efficient solutions•Increasing demand for our compound
semiconductor processing systems•Strong semiconductor chip market driving
continued growth for analysis systems

Global Market Drivers
PowerElectronics

Connectivity

Communications

Energy & Environment•

Sustained growth in battery-related markets,
leading to increased R&D and manufacturing
capacity•

Recovery in other end markets including
forensics and environmental science

Semiconductor
chip analysis

Augmented reality
glasses

Battery research
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Materials & Characterisation
Growth Examples
Advanced Materials•

Imaging and analysis solutions allow
customers to develop and manufacture
higher performing materials•Market intimacy enabling tailored solutions
and new opportunities•Increasing customers’ capabilities andproductivity in R&D and manufacturing

Healthcare & Lifescience••

Structural analysis of super alloys

Utilisation of advanced materials

Increased market intimacy and tailoredproducts driving growth into pharma and life
science applications

Analysis offlexible displays

Portfolio enhanced through WITec acquisition
Raman image of apharmaceutical
tabletOxford Instruments plc Half Year Results presentation 2021

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33% Group revenue
Academic: 71%
Commercial: 29%

Research & Discovery
Andor Technology; NanoScience; X-Ray Technology

Advanced solutions that create unique environments and enable measurements down to themolecular and atomic level•

Robust end markets driving strong order andrevenue growth, ahead of 2019•

Sustained growth in quantum and advanced
materials markets, recovery in Lifescience•

Research & fundamental science remains
subdued•Growth to academic & commercial customers
with double digit order growth across Europe,
North America & Asia•

Further improvement in profitability throughrealisation of Horizon initiatives

ScientificCamera

X-ray Tube

Proteox
Cryocooler

14%
37%
27%

% ofRevenue

2%

18%

3%

Confocal Microscope

Oxford Instruments plc Half Year Results presentation 202122

Research & Discovery
Growth Examples
Global Market Drivers

Healthcare & Lifescience• Growth drivers due to ageing
population and cost effective
healthcare remain robust••

Cell Biology

PersonalisedMedicine

Neuroscience

Immunology

Customer facilities reopening
Double digit order & revenue growth
despite easing of covid-related sales•

New products & tailored solutions
driving growth e.g. cancer applications•

Growth into pharma; direct sales andthrough OEM partners

Research & Fundamental Sciences• Continued positive pipeline, orders &revenue impacted by ongoing covid
disruption

The moment an
individual cell divides
into two

Automated analysis andvisualisation software

Micro CT imaging
Oxford Instruments plc Half Year Results presentation 202123

Research & Discovery
Growth Examples
Quantum Technology• Transitioning from fundamental
research to applied R&D andcommercial applications

Global Market Drivers
SecureCommunication

Quantum
Sensors

Quantum
Computing

Quantum
Imaging• Strong order & revenue growth
supported by governments andincreasing commercial demand• Growth across our cryogenic
platforms and scientific cameras
Advanced Materials• Strong order and revenue growth
driven by fundamental material
research e.g. for advanced
sensors, semiconductors andbatteries

Commercial cloud-based quantum computer

Analysis ofgraphene-likestructures
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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••

Continued progress in our service transformation
Increased demand and tailored product offerings
supported order and revenue growth for our ownproducts•Margins significantly ahead of 2019, slightly down
on 2020 due to recovery in customer visits•

Tailored products providing increased customer
value and enhanced productivity, acting as a key
differentiator•

Regional delivery and increased remote services
driving efficiencies and enhanced service delivery
Repair,
Maintenance &Consumables

RemoteDiagnostics &Support

Yield
Management &Application
Software

Remote Support

Augmented Reality
SupportTraining &Consultancy

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Summary & Outlook• Strong order and revenue growth in year, with growth on first half 2019
• Strong growth in operating profit with margin rising to 18%• Emerged from pandemic a stronger, more focused and efficientbusiness, even more aligned with our customers’ needs• Increased investment to support future growth• Foundation for good growth and medium-term margin expansion• Alignment to attractive, structurally growing end markets• Healthy order book and a strong opportunity pipeline• Supply chain pressures will moderate conversion of orders to revenue
and drive cost inflation in the second half

• Expectations for further progress in year unchanged despite near-term
headwinds

Oxford Instruments plc Half Year Results presentation 202126

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 Half Year Results presentation 2021