Preliminary resultspresentation
to 31 March 2022

Ian Barkshire
Chief Executive
Gavin Hill
Group Finance Director

AgendaHighlights
Horizon Strategy & ProgressGroup Performance – End Markets
Finance Review
End Market Overview
Sustainability Update
Summary & Outlook

Oxford Instruments plc Preliminary Results presentation 20222

Highlights• Strong financial performance reflecting resilience of our businessmodel and strength of our end markets• Significant order, revenue and profit growth despite challenging
operational backdrop; sustained progress over last two years• Strategic progress supporting margin enhancement, while
continuing to invest to fuel future growth• Well positioned in buoyant semiconductor, advanced materials,

quantum and life science markets; strong growth to commercial
and academic customers• Record order book provides increased visibility for the year ahead

Oxford Instruments plc Preliminary Results presentation 2022

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Strategy for Sustainable Growth
Leading technologies which create high customer value••

Leading provider of high technology products and services to the world’s
foremost industrial companies & scientific research communities
Unrivalled products for imaging, analysing & manipulating materials down tothe atomic & molecular level

Well positioned in global niche markets with long term structural
growth drivers•

Scale & differentiation within our markets: Advanced Materials, Semiconductor,
Lifescience & Quantum•

Enabling a greener, healthier, more connected advanced society

Building on our platform for value creation•

Cementing our leadership through customer centricity, product differentiation,
service capability & operational excellence•

Making synergistic acquisitions
Oxford Instruments plc Preliminary Results presentation 2022

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Horizon Strategy ProgressMarketIntimacy

Heightened market intimacy driving strong growth toexisting customers and expansion to adjacent markets

Innovation &Product
Development

New products delivering sustainable differentiation &growth into larger commercial markets

Operational
Excellence

Operational excellence driving efficiencies; mitigating
inflationary cost pressures

Customer
SupportService & digital transformation enhancing customer
value, leveraging operational budgets

Synergistic
Acquisitions

WITec strengthens portfolio with complementary
products, enhancing offering to our end markets

Considerable opportunities for further gains from ongoing Horizon
strategy execution
Oxford Instruments plc Preliminary Results presentation 2022

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Group Performance – End Markets•

Market intimacy in positive end markets
driving significant order growth•

Strong growth in semiconductor, quantum
and advanced materials markets•

Strong recovery from Healthcare &Lifescience and Energy & Environment after
subdued 2021

(18%) *
+10%*
+26%*

% of
Revenue
+25%*
+17%*
+39%*

•

Reduced customer activity & decreased
focus into Research & Fundamental Science•

Double digit order growth into Europe, Asia
and North America•

Covid-related disruption and supply chain
challenges held back revenue* revenue growth from prior year atconstant currency

Oxford Instruments plc Preliminary Results presentation 2022

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Finance Review

Gavin Hill

Oxford Instruments plc Preliminary Results presentation 2022

Strong Track Record of Delivery
Adjusted Profit Before Tax

Revenue£367m£314m £317m

£56m

£319m
£42m

£276m £278m

2017

2018

£66m

£46m

£50m

£31m

2019

2020

2021

2022

16.6%
15.2%

2018

2019

2020

2021

2022

Return on capital employed

Adjusted operating profit margin
17.8%

2017

18.1%
33%

15.9%

13.6%
16%

19%

35%

24%

10%
2017

2018

2019

2020

2021

2022

2017

2018

2019

2020

2021

2022

Oxford Instruments plc Preliminary Results presentation 2022

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Income Statement£m
Revenue
Adjusted1 operating profit
Amortisation of acquired intangibles
Non-recurring items
Mark-to-market of currency hedges
Statutory operating profit
Net finance costs
Adjusted1 profit before taxation
Statutory profit before taxation

Reported Organic CC
2021/22 2020/21 Change
Change367.3
318.5+15.3%+14.5%
66.3
56.7+16.9%+15.2%
(9.5)
(8.4)
(2.1)
(1.7)
(6.4)
6.4
48.3
53.0
(8.9%)
(0.7)
(0.8)
65.9
55.9
+17.9%
47.6
52.2(8.8%)

Adjusted1 effective tax rate

17.8%

19.3%

Adjusted1 basic earnings per share
Dividend per share (total)

94.3p
18.1p

78.6p
17.0p

+20.0%+6.5%

1 Adjusted items exclude the amortisation and impairment of acquired intangible assets, acquisition items, othersignificant non-recurring items, and the mark-to-market movement of financial derivatives

Oxford Instruments plc Preliminary Results presentation 2022

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Revenue by Sector£367.3m+15.3%2 reported+14.5%2 organic CC£318.5m
Materials &Characterisation+18.9%1

Research &Discovery+9.3%1Service &Healthcare+13.5%1

FY 20/21

Acquisitions+4.7%2Currency(3.9)%2

FY 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

Oxford Instruments plc Preliminary Results presentation 2022

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Adjusted Operating Profit by Sector£56.7mService &Acquisitions
Research & Healthcare+5.1%2
Materials & Discovery+18.9%1
Characterisation +10.8%1+16.3%1£66.3m
2 reported+16.9%
Currency
2 organic CC2+15.2%(3.4)%

Material &Characterisation
margin FY22: 14.1%
margin FY21: 13.7%
Research & Discovery
margin FY22: 17.7%
margin FY21: 17.2%
Service & Healthcare
margin FY22: 30.7%
margin FY21: 29.9%
Groupmargin FY22: 18.1%
margin FY21: 17.8%

FY 20/21

FY 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 Preliminary Results presentation 202211

50% Group revenue
Academic: 43%
Commercial: 57%

Materials & Characterisation

Orders
Revenue
Adjusted1 operating
profitAdjusted1 operating
marginOrganic
Constant
2021/22 2020/21
currency£m£m
Growth
growth
219.2
175.0+25.3%+29.8%
185.5
148.6+24.8%+18.9%
26.1

20.3

14.1%

13.7%

+28.6%+16.3%

Research &Fundamental
Science

Healthcare &Lifescience

+43%*

+43%*

1%
6%
Advanced
Materials

+24%*

33%

% of
revenue

Key performance highlights• Strong growth from semiconductor and communications driven investmentin production capacity across silicon and compound semiconductors, aswell as increased research and development• New product launches including portfolio of semiconductor processing
systems for high volume manufacturing• Significant investment in materials research and battery technology drove
growth across Advanced Materials and Energy & Environment

Energy &Environment

+21%*

45%

14%
1%

Semiconductor &Communications

Quantum
Technology+26%*(4%) ** revenue growth over prior year atconstant currency• WITec acquisition supporting growth in Healthcare & LifeScience
1 Adjusted items exclude the amortisation and impairment of acquired intangible assets, acquisition
items, other significant non-recurring items, and the mark-to-market movement of financial derivatives

Oxford Instruments plc Preliminary Results presentation 202212

33% Group revenue
Academic: 74%
Commercial: 26%

Research & Discovery
2021/22 2020/21£m£m

GrowthConstant
currency
growthOrders

133.9

115.7

+15.7%+19.6%

Revenue
Adjusted1 operating
profitAdjusted1 operating
margin

120.3

113.4

+6.1%

+9.3%

Research &Fundamental
Science
Healthcare &Lifescience(23%) *

+4%*

15%

21.3

19.5

17.7%

17.2%

+9.2%

+10.8%

Key performance highlights• Investment in healthcare research driving demand for ourimaging and microscopy products,• Targeted product launches, including BC43, our new benchtop
microscopy system provides access to broader life sciencemarkets• Strong recovery from OEM partners driving growth across all end
markets• Evolution of quantum computing research resulting in demand forcryogenic platforms• Deprioritising complex systems for Research & Fundamental
Science

Advanced
Materials

+32%*
23%

37%

% of
revenue

4%
21%
Quantum
Technology+45%*

Semiconductor &Communications+1%** revenue growth over prior year atconstant currency

1 Adjusted items exclude the amortisation and impairment of acquired intangible assets, acquisition
Oxford Instruments plc Preliminary Results presentation 2022
items, other significant non-recurring items, and the mark-to-market movement of financial derivatives

13Service & Healthcare

Orders
Revenue
Adjusted1 operating
profitAdjusted1 operating
margin17% Group revenue

Constant
2021/22 2020/21
currency£m£m
Growth growth
70.0
63.0 +11.1% +16.0%
61.5
56.5
+8.8% +13.5%
18.9

16.9

30.7%

29.9%

+11.8%+18.9%

Key performance highlights• Continue to enhance service offering and drive remote connectivity

Augmented Reality
Support• Strong growth related to our own products, supported by tailored andflexibly bundled service offerings by end application and region• Enhanced remote service and digital analytics capabilities enabling
greater customer reach and value through higher productivity levels• Transitioned to regional service model to drive growth and promote
efficiencies• Quality service and support provided for our MRI healthcare customers
in JapanRemote Support

1 Adjusted items exclude the amortisation and impairment of acquired intangible assets, acquisition
items, other significant non-recurring items, and the mark-to-market movement of financial derivatives

Oxford Instruments plc Preliminary Results presentation 2022

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Revenue and Orders by Region
Revenue2%

51%

Order growthRoWreported +9%
constant currency +11%24%

Europereported 2%
constant currency (2)%North America
reported +21%
constant currency +23%
Asia
reported +20%
constant currency +22%£367.3m23%

Asiareported +26%
constant currency +30%

Europereported +19%
constant currency +15%

North America
reported +11%
constant currency +12%

RoW
reported (6)%constant currency -Book-to-bill ratio
FY 21/22: 115%
FY 20/21: 117%
Oxford Instruments plc Preliminary Results presentation 2022

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Order Book by Sector

Materials &Characterisation+45%1

Research &Discovery+12%1

Service &Healthcare
+27%1

£260m
+30%2 reported+27%2 organic CC£198m

FY 20/21

FY 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

Oxford Instruments plc Preliminary Results presentation 2022

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Cash Flow
Cash conversion
72% (84%1)
FY21: 101%

Adj effective tax
rate
17.8%
FY21: 19.3%
Working
capitalWorking capitaloutflow£11.8m
FY21: £2.7m
outflow

Capex£13.9m
FY21: £4.0m

Lease
payments

Capex &
capitalised
development
costs

Adjusted
EBITDA

Tax

Pension asset£51.7m
FY21: £16.3m

Pensions

Acquisitions£30.6m
FY21: -

Acquisitions
Dividend

FX,
Interest& other

Capitalised
development
costs
£0.7m
FY21: £0.9m

Dividend£12.3m
FY21: Net cash including
lease liabilities£67.5m
FY21: £90.1m£85.9mnet cash
FY 21/22£97.6mnet cash
FY 20/21
1 Cash conversion (normalised) of 84% excludes expenditure on our new semiconductor facility

Oxford Instruments plc Preliminary Results presentation 2022

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Currency Exposure

Adjusted Operating Profit (£mequivalent)

Revenue (£m equivalent)
Sterling

Sterling £(57)m£85m

US Dollar

£163m

Euro

£75m

Japanese Yen£37m

Chinese…

£6m

Other

£2m

US Dollar

£59m

Euro

£41m

Japanese Yen£22m

Chinese Renminbi

£1m

Other

£1m

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FX Sensitivity• Adverse currency impact in 2021/22: Revenue: (£12.4m) ; AOP:(£1.9m)• Estimated Full Year 2022/23 currency impact– Assuming current hedges as at 31/03/22 and no change from current
forecast rates, approximate currency sensitivity against 2021/22:
Revenue: +£5.1m; AOP: (£4.0m)– This does not affect the underlying growth of the Group and is prior to
mitigating actions• Estimated Full Year 2023/24 currency impact– Assuming no change from current rates, currency sensitivity against
2022/23: Revenue: £-m; AOP: +£1.9m• Uncertain volume and timing of shipments and acceptances,currency mix and FX volatility, may significantly affect full year
currency impact outcomes

Forecast currency rates – GBP:USD 1.28; GBP:EUR 1.20; GBP:JPY 163
Oxford Instruments plc Preliminary Results presentation 2022

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Finance Summary• Organic constant currency revenue growth of 15% despite supply
chain disruption• Adjusted operating margin lifted to 18.1%, with margin
improvement across all sectors• Adjusted EPS growth of 20% and increase in total dividend of 6.5%
• Cash conversion of 84% (normalised excl. new semiconductor
facility)• Defined benefit pension plan moving closer to self-sufficiency• Net cash of £85.9m provides strong balance sheet to support
future growth through organic investment and acquisition
opportunities• Strong order book provides good visibility ahead; however, we
continue to anticipate challenges from export controls, supply
chain disruption, and cost inflation
Oxford Instruments plc Preliminary Results presentation 2022

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End Market Overview

Ian Barkshire

Oxford Instruments plc Preliminary Results presentation 2022

Markets: long term structural Growth drivers
Semiconductor &Communications
Healthcare & Lifescience• Aging population• Improved treatments &vaccines• Personalised medicine &therapies• Reduced development
timelines & costs

Energy & Environment• Climate change• Increasing energy demands• Transition from fossil fuels• Food & Water safety• Increased chip demand• Faster computers & devices• Exponential data growth• Universal connectivity• Green economy

Sustainability agenda
reinforcing growth drivers

Quantum Technology• Disruptive technology• Government & data security• Evolving commercial market• Range of sectors - Pharma,
logistics, Finance

Advanced Materials• Building blocks of advanced
society• Improved performanceenables megatrends• Sustainable manufacturing• Finite resources

Research & Fundamental
Science• Advancing society• Tomorrow’s innovation• Economic leadership• Astronomy & Space

Oxford Instruments plc Preliminary Results presentation 2022

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Healthcare & Lifescience
Personalised Medicine

•
•
•
•

Client needs
Understand fundamental diseasemechanisms
Analyse efficacy at cellular & molecularlevel to improve treatment
Transform patient outcomes
Shrink development time & costs•••

Oxford Instruments provides
Highest performance research systems
Benchtop systems - unprecedented easeof use & accessible price point
Dedicated workflows & data analytics

Visualisation of drug
efficacy on organoids
and individual cells

Improving patient outcomes throughpersonalised medicines
Measuring Efficacy of Personalised
cancer treatments

BC43 – Benchtop
Analyser

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Semiconductor & Communication
Semiconductor Analysis

•
•
•
•

Client needs
Faster processors, higher yield per wafer
Manufacture of smaller & more complex
devicesNanoscale characterisation
Efficient QA & QC tools•••

Oxford Instruments provides
Highest performing solutions –unparalleled spatial resolution, accuracy& speedEase of use – Expert to Routine
Dedicated workflows & analytics driving
productivity

Ultra-High spatial
resolution analysis:
Composition &Structure

Wafer defect review

Nano Manipulator
Lamalla lift out

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Semiconductor & Communication
Power Semiconductors

•
•
•
•
•

Client needs
Higher power, capacity & lifetime
Improved energy efficiency
Manufacturing of complex devices
New materials & processes
Higher yields, lower costs

•
•
•
•

Oxford Instruments provides
Dedicated production and R&D systems
Proprietary critical layer processes
Ultimate control of composition & surface
Yield management solutions
Portfolio of R&D & dedicatedproduction systems

SiC Wafer preparation –High quality surface

Precise etch: creating
device structures

Increasingly complex
device structures

Critical layer
deposition: SiC & GaN
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Advanced Materials

Enabling advances in Automotive design and manufacturing

•
•
•
•
•

Client needs
Improved vehicle performance
Offsetting battery weight
Enhanced passenger protection
Advanced steels – 25% weight reduction~20% improved fuel economy / range
Control of the nanoscale structure

•
•
•
•

Oxford Instruments provides
Nanoscale structure & composition
analysis
Fastest automated grain analyser
AZtecSteel tailored workflow
AZtecClean for defect analysis

Dedicated
workflows
Functionally
Optimised Materials:- safety cage- structural frame- crumple zone

Symmetry:
Nanoscale grain
structure analysers

Nanoscale Compositional
Analysis
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Shaping a sustainable future•

Sustainability is a cornerstone of our long-term strategy to drive
stakeholder value•

Our products and services directly support society’s investment indelivering a sustainable future•

Executing on our sustainability agenda– Embracing TCFD reporting framework & wider sustainability
reporting– Significant reduction in own environmental footprint– Improved diversity across the Group– Developing our long-term ambitions & targets for social,environment & governanceOxford Instruments plc Preliminary Results presentation 2022

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Summary & Outlook• Strong order and revenue growth in year, with growth on FY 2020
• Strong growth in operating profit, and improved margin despite supply
chain and cost headwinds• Emerged from turbulence of last two years a stronger, more focusedand efficient business, aligned to attractive, structurally growing end
markets• Anticipate continued supply chain challenges & inflationary headwinds.
However strong order book and opportunity pipeline supports a fullyear outlook in line with our expectations• Well positioned to deliver sustainable growth and medium-term
margin expansion

Oxford Instruments plc Preliminary Results presentation 2022

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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 was
prepared 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. 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 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 Preliminary Results presentation 2022

Appendix

Investment caseConfidence in strategy

Strong financial position

World-class brand reputation

Focus on sustainability

Access to attractive markets
Oxford Instruments plc Preliminary Results presentation 2022

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The Oxford Instruments Business Model
Horizon defines the way we operate,embedding clearly defined corecapabilities, processes and procedures
across our businesses in the following
areas:
Our core purpose is to support ourcustomers in addressing some of
the world’s most pressing
challenges.
Our key enabling technologies,
products and services facilitate agreener economy, increased
connectivity, improved health andleaps in scientific understanding.
Oxford Instruments plc Preliminary Results presentation 2022

Semiconductor market drivers
We offer higher resolution imaging andanalysis solutions

Miniaturisationof silicon
devices
Smallerfeaturesandcomplexarchitecture–“More
Moore”

Improved yield,
lower cost,higherthroughput

Computation –fasterprocessing

PowerElectronics- EVs / Consumer
electronics

Exponential data
growth driving
development ofmemorySustainability
focus- energytransition

Ubiquitoususe driving
demand/capacity
Increased
Connectivity- human interface; IoT,
facial recognition

Fastercommunications– 5G & 6G
Next
generation
augmented
reality devices

We provide compound semiconductor processsolutions for R&D and high volume manufacturing

Transformational Performance
New materials & device structures

Oxford Instruments plc Preliminary Results presentation 2022