Oxford Instruments plc
Tubney Woods, Abingdon, Oxon OX13 5QX, UK
Tel: +44 (0) 1865 393200

Press Release

Email:info.plc@oxinst.com
www.oxford-instruments.com

Release Date: 7am Tuesday 13th November 2012

Oxford Instruments plc
Announcement of Half Year Results for 2012/13
Oxford Instruments plc, a leading provider of high technology tools and systems for industry and research, today
announces its Half Year Results for the six months to 30 September 2012.
Highlights:•

Good progress in the first half, in line with meeting our 14 Cubed growth plan objectives•

Revenue up 7.4% to £170.8 million (2011: £159.1 million)•

Adjusted profit before tax* up 23.5% to £23.1 million (2011: £18.7 million)•

Adjusted EPS* up 20.2% to 33.9 pence (2011: 28.2 pence)•

Reported EPS up 25.1% to 20.9 pence (2011: 16.7 pence)•Continued increase in global demand for nanotechnology tools•

Focused R&D programme continued to underpin organic growth•

New product pipeline remains strong•

Net cash of £37.1 million at period end (2011: £11.9 million)•

Interim dividend increased by 10.1% to 3.05 pence (2011: 2.77 pence)*Adjusted numbers are stated to give a better understanding of the underlying business. Details of adjusting items can be found in Note 2.

Jonathan Flint, Chief Executive of Oxford Instruments plc, said:“We have delivered a strong result in the first half in line with our 14 Cubed objectives. We have a broad spread ofgeographies and technologies, exposure to markets with long term structural growth, a strong pipeline of new products
and a focus on improving efficiency. These factors should help us to remain resilient against a backdrop of sustained
global economic uncertainty. We are continuing our pursuit of acquisitions that have the potential to enhanceshareholder value and add to our range of technical capabilities.
The Board remains confident in the continued growth prospects of Oxford Instruments and the Group’s ability todeliver shareholder value.”
Enquiries:
Oxford Instruments plc
Jonathan Flint, Chief Executive
Kevin Boyd, Group Finance Director

Tel: 01865 393200

MHP Communications
Rachel Hirst
Ian Payne
Number of pages: 22

Tel: 020 3128 8100

For further copies of this Half Year Results Announcement, please contact Lynn Shepherd at the Group’s registered office at
Tubney Woods, Abingdon, Oxon OX13 5QX (email: lynn.shepherd@oxinst.com)

Oxford Instruments plc

Half Year Results Announcement for the six months ended 30 September 2012

Half Year Statement
Introduction
The Group continued to make good progress in the first half driven by new product introductions and long term
structural global growth in demand for Nanotech tools. Revenue grew by 7.4% to £170.8 million (2011: £159.1 million),with constant currency organic growth of 5.8%. Adjusted profit before tax grew by 23.5% to £23.1 million (2011: £18.7
million). Our adjusted operating margin continued to increase, rising to 13.9% from 11.9% in the prior year.
Overall, demand for our products remained strong, despite some softness in the industrial sector as reported in our
AGM statement in September 2012. We maintained pricing in the period, supported by the strength of our brand andthe quality of our technology. Our organic growth continues to be underpinned by our focused R&D programme. In thehalf year, we increased our R&D cash spend by 7% to £12.1 million, reflecting the opportunities we see to increase
market share through the introduction of innovative new products.
Developed markets showed robustness as customers used our equipment to work at the frontiers of science andimprove the efficiency of high technology production facilities. Growth in North America and Europe was 3% and 1%
respectively. Sales growth in Asia was strong at 23% supported by a number of initiatives including a branch office in
Korea and the opening of our Indian subsidiary led by a new senior Country Manager.
October 2012 marked the half way point of our 14 Cubed growth plan to deliver an average compound annual growthrate in sales of 14% and a net return on sales of 14% by 2014. Progress to date is in line with meeting theseobjectives.
The Directors declare an interim dividend of 3.05 pence, 10% higher than the previous year, payable on 8 April 2013
to shareholders who are on the register on 8 March 2013.

Nanotechnology Tools Sector

Revenue
Operating profit

2012
£m
80.9
10.4

2011
£m
70.4
7.3

In our Nanotechnology Tools sector, which represents 47% of Group revenue, profits grew by 42% and operating
profit margins increased to 12.9% (2011: 10.4%). The sector comprises four businesses: NanoAnalysis, Plasma
Technology, NanoScience and Omicron NanoTechnology. It produces high performance instruments and systems forcustomers working in scientific research and with advanced industrial processes. We have seen no evidence of areduction in research funding from governments worldwide.
Sales of our new material characterisation system comprising our latest generation nanoanalysis detector hardware
and multi-tasking Aztec® software have been strong. A series of software upgrades has firmly established this productas the world’s leading material characterisation system and sales have exceeded expectations. Three new productintroductions in the first half have further enhanced the position of NanoAnalysis as technology leaders with the new
X-MAXn series of large area detectors setting a new benchmark in the measurement and quantification of materials at
the nanoscale. The acquisition of Omniprobe in June 2011 has broadened our NanoAnalysis product range by offering
innovative nano-manipulation tools for sample preparation on electron and ion beam microscopes. The launch of a
new nano-manipulation tool, Omniprobe400, has supported Omniprobe’s growing contribution to the Group.
Our Plasma Technology business produces equipment for nanofabrication and has performed well. We have seen
good growth in markets such as next generation photovoltaics, power semiconductors and MEMS (Micro Electrical
Mechanical Systems), sales of which have increased following the launch of our PlasmaPro100 system. As previously
reported, over-capacity in the HBLED market has led to a softening in demand for our HBLED fabrication tools overthe last 18 months. However we maintain a strong technological position in this market and we are well placed tobenefit when demand begins to strengthen again.

Oxford Instruments Plc

2

Half Year Results Announcement for the six months ended 30 September 2012
Omicron NanoTechnology, which we acquired in June 2011, offers customers working at the cutting-edge of physics
research a broad range of sophisticated, multi-technique systems. These include Scanning Probe Microscopy (SPM),
Electron Spectroscopy and Ultra High Vacuum solutions. Some weakness in orders in the second half of last year has
now reversed and order intake in the period has been strong, including the largest order Omicron has ever taken.
However, the long lead times associated with its complex products mean that it will take another year to bring thisbusiness up to expected levels of performance. In line with our integration plan we have appointed a new Managing
Director to drive this growth. He replaces the founder who, as planned, has retired.
Our NanoScience business is the world’s leading supplier of cryogenic systems for nano-characterisation andmeasurement at low temperatures and high magnetic fields. Our Triton® dilution refrigerator continues to be a market
leading product for this business. Six systems were recently installed in the newly opened Centre for Quantum
Devices at the Niels Bohr Institute in Copenhagen. The growth of the consultancy business has continued with arange of contracts including one with fusion technology specialists Tokamak Solutions.

Industrial Products Sector

Revenue
Operating profit

2012
£m
61.5
7.6

2011
£m
64.7
6.6

In our Industrial Products sector, which represents 36% of Group revenue, profits grew by 15%. The businesses
which make up this sector are unchanged but have been regrouped into Industrial Analysis and Industrial
Components. This sector supplies analytical systems for quality control, environmental and compliance testing andcomponents for industry and research. The Industrial Analysis business comprises X-ray Fluorescence, OpticalEmission Spectroscopy and Magnetic Resonance. Industrial Components comprises Superconducting Wire, Austin
Scientific and X-Ray Technology.
Emerging markets, particularly India, continue to offer an important growth opportunity for Industrial Products, althoughin general visibility is lower than last year. Prior year comparators include revenues from a product line we disposed oflast year and a large one-off order in Austin Scientific. Excluding these items, revenues increased. Operating profit
margins further improved to 12.4% (2011: 10.2%).
In Industrial Analysis, new portable and hand-held analysers launched this half have generated considerable interest
from both new and existing customers, offering an innovative user interface and improved ergonomics in response tocustomer feedback. Our bench top products have benefited from strong demand. We have continued to build a strong
position in the rock core analysis market where our magnetic resonance analyser is a market leader. Magnetic
resonance is gaining recognition as a crucial technique in helping to understand recently discovered natural resources
such as oil in shale.
In Industrial Components, the increasing demand for next generation, higher magnetic field MRI scanners continues todrive growth in our Superconducting Wire business where we have invested in new facilities which will improve
efficiency in the core MRI business. Deliveries to the international ITER energy programme remain on track withcompletion scheduled for the end of the financial year. In our X-Ray Technology business, important new productinnovations include the use of a novel X-ray source in a radiography system to advance the treatment of breast cancer
and on the NASA Mars Rover. At Austin Scientific, sales to a large semiconductor manufacturer have reduced, as
anticipated, following a large contract win last year. Austin Scientific’s move to new premises has been completed
successfully.

Oxford Instruments Plc

3

Half Year Results Announcement for the six months ended 30 September 2012

Service Sector

Revenue
Operating profit

2012
£m
29.3
5.8

2011
£m
24.9
5.0

Our Service business represents 17% of Group revenue and profits grew by 16%. It comprises activities in the UnitedStates and Japan servicing MRI machines, together with the aftermarket revenues associated with ourNanotechnology Tools and Industrial Products sectors. Operating profit margins remained strong at 19.8% (2011:20.1%).
The aftermarket revenues associated with our two manufacturing sectors are split into three main revenue streams:
service contracts (where customers purchase unlimited support for a fixed period); billable service (where customers
are billed for time and materials); and the sale of spare parts and consumables. To support these activities, we arealso investing in e-commerce, new training packages, hardware and software upgrades and increased personnel.
In November 2011 we acquired Platinum Medical Imaging, an established US company providing high quality partsand services for MRI (Magnetic Resonance Imaging) and CT (Computed Tomography) medical imaging instruments.
There is a growing opportunity in the US market following healthcare reforms which have encouraged the transfer of
medical imaging facilities to more cost effective third party service providers. The combination of Platinum with Oxford
Instruments’ MRI Service business in North America significantly strengthens the Group’s Service Sector by providing
a broader range of services internationally. For example, we have recently received regulatory approval to provide
refurbished CT and MR equipment to companies in South Korea.
Financial Review
Orders in the period were £169.8 million (2011: £174.8 million) and the order book for future deliveries was £142.8
million at the end of the period.
Revenues in the half year grew by 7.4% (£11.7 million) to £170.8 million. The increase in revenues between the two
periods due to acquisitions and disposals was £3.7 million. Adverse foreign currency exchange rate movements
reduced sales by £1.2 million giving organic volume growth of 5.8%.
The implementation of the Business Improvement Plan, one of the three elements of our 14 Cubed medium term plan
has helped grow gross margins across the Group from 42.7% to 44.6%. Constant currency operating expenses,
excluding acquisitions, were held at the same level as the prior year.
Adjusted operating profit increased by £4.9 million to £23.8 million, giving an adjusted operating profit margin of 13.9%(2011: 11.9%). Net bank interest reduced by £0.2 million to a charge of £0.3 million, and net interest on the pension
fund changed from a credit of £0.3 million to a charge of £0.4 million due to the increased deficit at the end of March2012 and the reduced rate of return from gilt related assets. As a result adjusted profit before tax rose £4.4 million to£23.1 million.
The ability to utilise brought forward tax losses in the UK has kept the adjusted tax rate low at 18% (2011: 20%) whichleads to adjusted earnings per share (EPS) of 33.9 pence, an increase of 5.7 pence. Reported EPS rose by 4.2 pence
to 20.9 pence. The difference is due to the items detailed in note 2, primarily acquisition costs, amortisation of
acquired intangible assets and the utilisation of the large deferred tax asset that was excluded from adjusted earnings
in the prior year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 19.5% to £28.2 million. As
expected working capital expanded in the period but remains controlled at 7% of the previous twelve months sales.
Capital expenditure increased to £4.2 million from £2.1 million primarily due to increased investment in our
superconducting wire facility.

Oxford Instruments Plc

4Half Year Results Announcement for the six months ended 30 September 2012
At the period end net cash was £37.1 million (31 March 2012: £35.1 million, 2011: £11.9 million). Cash inflow in the
period was £2.0 million (2011: £1.2 million outflow). The Group has a committed £50 million revolving credit facility
with a club of banks, extendable to £70 million by mutual consent, which expires in December 2014.
As calculated under IAS19, the defined benefit pension deficit has increased by £5.7 million to £40.9 million since 31
March 2012. Since 31 March 2012 assets have risen by 2.3% to £184.4 million while liabilities have increased by
4.6% to £225.3 million due mainly to the reduction in corporate bond yields used to discount liabilities.
Going concern
The Group’s business activities, together with the factors likely to affect its future development, performance andposition, are set out above. The financial position of the Group, its cash flows, liquidity position and borrowing facilities
are described in the above Financial Review section.
The diverse nature of the Group combined with its current financial strength provides a solid foundation for asustainable business. The Directors have reviewed the Group’s forecasts and considered a number of potential
scenarios relating to changes in trading performance. The Directors believe that the Group will be able to operate
within its existing debt facility which expires in December 2014. This review also considered hedging arrangements inplace. As a consequence, the Directors believe that the Group is well placed to manage its business risks
successfully.
This Half Year Report has been prepared on a going concern basis, based on the Directors’ opinion, after making
reasonable enquiries, that the Group has adequate resources to continue in operational existence for the foreseeable
future.
Principal Risks
The principle risks in the business are considered the Principal Risks and Uncertainties section of this Half Year
Report.
PeopleA high technology business relies on the skills and expertise of its people. We therefore recognise the importance ofensuring a sustainable business going forward through an inclusive strategy of managing, developing and recruiting
people who support our company values and contribute to our growth. Our wholehearted thanks go to all our people
for their commitment, energy and hard work.
Outlook
We have delivered a strong result in the first half in line with our 14 Cubed objectives. We have a broad spread ofgeographies and technologies, exposure to markets with long term structural growth, a strong pipeline of new products
and a focus on improving efficiency. These factors should help us to remain resilient against a backdrop of sustained
global economic uncertainty. We are continuing our pursuit of acquisitions that have the potential to enhanceshareholder value and add to our range of technical capabilities.
The Board remains confident in the continued growth prospects of Oxford Instruments and the Group’s ability todeliver shareholder value.
Jonathan Flint
Chief Executive
13 November 2012

Oxford Instruments Plc

5Half Year Results Announcement for the six months ended 30 September 2012

Condensed Consolidated Statement of Income – unaudited
Half Year to 30 Sept 2012
Adjusted*

Revenue
Cost of sales
Gross profit
Research and development
Selling and marketing
Administration and sharedservices
Other operating income
Foreign exchange gain/(loss)
Operating profit

Notes
3

4

Expected return on pension
scheme assets
Other financial income
Financial income
Interest charge on pension
scheme liabilities
Other financial expenditure
Financial expenditure

Total

Half Year to 30 Sept 2011
As restated and re-presented**
Adjusted*
AdjustingTotal
items*
£m
£m
£m
159.1
159.1
(91.1)(1.0)(92.1)
68.0
(1.0)
67.0
(12.6)(12.6)(22.3)(22.3)£m
170.8(94.6)
76.2(12.1)(25.1)

Adjustingitems*
£m
(0.2)
(0.2)
-

£m
170.8
(94.8)
76.0(12.1)(25.1)(16.3)
1.1
23.8

(6.0)
(6.2)

(22.3)
1.1
17.6(14.4)
0.2
18.9

(5.0)
(6.0)

(19.4)
0.2
12.9

4.8
0.2
5.0

-

4.8
0.2
5.0

5.4
5.4

0.4
0.4

5.4
0.4
5.8

(5.2)

-

(5.2)

(5.1)

-

(5.1)

(0.5)
(5.7)

-

(0.5)
(5.7)

(0.5)
(5.6)

-

(0.5)
(5.6)

Profit before income tax

3

23.1

(6.2)

16.9

18.7

(5.6)

13.1

Income tax expense
Profit for the period
attributable to equity
shareholders of the parent

6

(4.1)

(1.1)

(5.2)

(3.8)

(0.4)

(4.2)

19.0

(7.3)

11.7

14.9

(6.0)

8.9

pence

pence

pence

Pence

Earnings per share
Basic earnings per share

7

33.9

20.9

28.2

16.7

Diluted earnings per share

7

33.4

20.6

27.4

16.2

Dividends per share
Dividends paid
Dividends proposed

8
8

2.77
3.05

2.52
2.77

* Adjusting numbers are stated to give a better understanding of the underlying business performance. Details of adjusting items can be found in Note 2 of this Half Year Report.
** See Note 1 of this Half Year Report for details of restatement and re-presentation of comparative information.

Oxford Instruments Plc

6

Half Year Results Announcement for the six months ended 30 September 2012

Condensed Consolidated Statement of Income – unaudited

Adjusted*

Revenue
Cost of sales
Gross profit
Research and development
Selling and marketing
Administration and sharedservices
Other operating income
Foreign exchange gain/(loss)
Operating profit
Expected return on pension
scheme assets
Other financial income
Financial income

Notes
3

4

Interest charge on pension
scheme liabilities
Other financial expenditure
Financial expenditure

£m
337.3
(188.3)149.0(25.8)(48.7)(32.1)

Year to 31 March 2012
AdjustingTotal
items*
£m
£m
337.3
(1.7)
(190.0)(1.7)
147.3(25.8)(48.7)(12.7)(44.8)

(0.3)
42.1
10.9

7.0
(7.4)
-

7.0
(0.3)
34.7
10.9

0.2
11.1

1.5
1.5

1.7
12.6

(10.2)(1.0)-(10.2)(1.0)(11.2)-(11.2)

Profit before income tax

3

42.0

(5.9)

36.1

Income tax expense
Profit for the period
attributable to equity
shareholders of the parent

6

(8.8)
33.2

(2.5)
(8.4)

(11.3)
24.8

Earnings per share
Basic earnings per share
Diluted earnings per share

7
7

Dividends per share
Dividends paid
Dividends proposed

8
8

pence

pence

61.6
60.3

46.0
45.0

9.0
10.0

* Adjusting numbers are stated to give a better understanding of the underlying business performance. Details of adjusting items can be found in Note 2 of this Half Year Report.

Oxford Instruments Plc

7

Half Year Results Announcement for the six months ended 30 September 2012

Condensed Consolidated Statement of Comprehensive Income - unauditedYear to31 March
2012

£m
11.7

Half year to
30 Sept2011
as represented*
£m
8.9

(2.6)
(7.7)

0.5
(20.4)(2.6)(28.6)

Half year to
30 Sept
2012

Profit for the period

£m
24.8

Other comprehensive (expense)/income
Foreign exchange translation differences
Actuarial loss in respect of post retirement benefits
Net loss on effective portion of changes in fair value ofcash flow hedges, net of amounts recycled
Tax on items recognised directly in other comprehensive
incomeTotal other comprehensive (expense)/income

-

(1.2)

(0.4)

1.6
(8.7)

5.5
(15.6)

7.2(24.4)

Total comprehensive income/(expense) for theperiod attributable to equity shareholders of theparent

3.0

(6.7)

0.4

* See note 1 for details of re-presentation of comparative information.

Oxford Instruments Plc

8Half Year Results Announcement for the six months ended 30 September 2012

Condensed Consolidated Statement of Changes in Equity - unaudited

Balance at 1 April 2012
Total comprehensive income/(expense)
attributable to equity shareholders of theparent-Profit for the period-Other comprehensive income
Transactions recorded directly in equity:- Credit in respect of employee service
costs settled by award of share options- Tax credit in respect of share options- Proceeds from shares issued- Dividends paid and accrued
Total contributions by and distributions toequity shareholders
Balance at 30 September 2012

Balance at 1 April 2011
Total comprehensive income/(expense)
attributable to equity shareholders of theparent-Profit for the period (as represented*)-Other comprehensive income
Transactions recorded directly in equity:- Credit in respect of employee service
costs settled by award of share options- Proceeds from shares issued- Dividends paid and accrued (asrestated*)
Total contributions by and distributions toequity shareholders
Balance at 30 September 2011

Sharecapital
£m
2.8

Share
premium
account
£m
60.2

Other
reserves£m
0.1

Foreignexchangetranslation
reserve
£m
0.6

-

-

-

-

0.1
-

2.8

0.1
60.3

Retainedearnings
£m
63.4

Total
£m
127.1

(2.6)
(2.6)

11.7
(6.1)
5.6

11.7
(8.7)
3.0

-

-

0.6
1.3
(5.6)

0.6
1.3
0.1
(5.6)

0.1

(2.0)

(3.7)
65.3

(3.6)
126.5

Share
capital
£m
2.5

Share
Premium
Account
£m
22.5

Other
reserves£m
0.4

Foreignexchangetranslation
reserve£m
3.2

Retained
Earnings
asrestated*
£m
64.9

Total
as
restated*
£m
93.5

-

-

(0.8)
(0.8)

0.5
0.5

8.9
(15.3)(6.4)

8.9(15.6)
(6.7)

0.3

37.3

-

-

0.3
-

0.3
37.6

-

-

-

-

(4.8)

(4.8)

0.3
2.8

37.3
59.8

(0.4)

3.7

(4.5)
54.0

33.1
119.9

Share
capital
£m
2.5

Share
Premium
Account
£m
22.5

Other
reserves£m
0.4

Foreignexchangetranslation
reserve£m
3.2

Retainedearnings
£m
64.9

Total
£m
93.5

-

-

(0.3)
(0.3)

(2.6)
(2.6)

24.8
(21.5)
3.3

24.8(24.4)
0.4

0.3
-

37.7
-

-

-

1.0
(1.0)
(4.8)

1.0
(1.0)
38.0
(4.8)

0.3
2.8

37.7
60.2

0.1

0.6

(4.8)
63.4

33.2
127.1

* See note 1 for details of restatement of comparative information.

Balance at 1 April 2011
Total comprehensive income/(expense)
attributable to equity shareholders of theparent-Profit for the period-Other comprehensive income
Transactions recorded directly in equity:- Credit in respect of employee service
costs settled by award of share options- Tax charge in respect of share options- Proceeds from shares issued- Dividends paid
Total contributions by and distributions toequity shareholders
Balance at 31 March 2012

Oxford Instruments Plc

9Half Year Results Announcement for the six months ended 30 September 2012

Condensed Consolidated Statement of Financial Position - unaudited
As at
30 Sept2011£m
as restatedand represented*

As at
31 March
2012
£m

29.9
70.8
21.0
121.7

28.0
75.5
21.0
124.5

28.2
78.1
19.3
125.6

60.9
64.2
1.0
2.2
37.9
166.2

64.5
67.0
1.4
2.1
19.5
154.5

59.3
61.0
1.3
2.4
35.1
159.1

287.9

279.0

284.7

2.8
60.3
0.1
(2.0)
65.3
126.5

2.8
59.8
(0.4)
3.7
54.0
119.9

2.8
60.2
0.1
0.6
63.4
127.1

0.7
3.8
40.9
7.2
52.6

7.0
0.7
29.7
9.5
46.9

2.8
35.2
7.0
45.0

0.1
91.4
3.5
4.0
0.4
9.4
108.8

0.1
0.5
94.9
3.4
3.5
2.6
7.2
112.2

96.4
6.0
1.2
9.0
112.6

Total liabilities

161.4

159.1

157.6

Total liabilities and equity

287.9

279.0

284.7

As at
30 Sept
2012£m

AssetsNon-current assets
Property, plant and equipment
Intangible assets
Deferred tax assets

Current assets
Inventories
Trade and other receivables
Current income tax recoverable
Derivative financial instruments
Cash and cash equivalents

Total assets
EquityCapital and reserves attributable to theCompany’s equity shareholders
Share capital
Share premium
Other reserves
Translation reserve
Retained earnings

Liabilities
Non-current liabilities
Bank loans
Other payables
Retirement benefit obligations
Deferred tax liabilities

Current liabilities
Bank loans
Bank overdrafts
Trade and other payables
Current income tax payables
Accrued dividend
Derivative financial instruments
Provisions*See note 1 for details of restatement and re-presentation of comparative information.

Oxford Instruments Plc

10Half Year Results Announcement for the six months ended 30 September 2012

Condensed Consolidated Statement of Cash Flows - unaudited
Half year to
30 Sept2012£mYear to31 March
2012
£m

11.7

Half year to
30 Sept2011£m
as re-presented*
8.9

5.2
0.7
0.2
0.6
5.4
2.3
2.1

4.2
(0.2)
1.0
0.7
4.3
2.3
2.4

11.3
(1.4)
(7.0)
1.7
1.5
11.2
4.8
5.2

28.2
0.6
-

23.6
0.3
(0.5)

52.1
0.5
1.0
(1.0)

(2.4)

(2.1)

(4.5)

26.4
(2.2)
(4.7)
(4.6)
0.4
15.3
(0.5)
(5.8)
9.0

21.3
(4.8)
(7.9)
(2.8)
4.9
10.7
(1.2)
(3.4)
6.1

48.1
(0.2)
(1.7)
5.7
(1.4)
50.5
(1.1)
(7.8)
41.6

1.0
0.2
(0.2)
(4.2)
(1.8)
(5.0)

(40.7)(2.1)(0.9)(43.7)

0.1
7.3(51.6)(5.6)(2.4)(52.2)

0.1
0.8
(1.6)
(0.7)
3.3
35.1
(0.5)
37.9

37.6
(6.0)
2.5
(1.3)
32.8
(4.8)
23.7
0.1
19.0

38.0
(13.1)
2.5
(4.8)
22.6
12.0
23.7
(0.6)
35.1

Reconciliation of changes in cash and cash equivalents to movement in net cash
Half year toHalf year to
30 Sept
30 Sept
2012
2011
£m
£m

Year to31 March2012£mProfit for the period
Adjustments for:
Income tax expense
Net financial expense/(income)
Other operating income
Reversal of acquisition related fair value adjustments
Acquisition related costs
Amortisation of acquired intangibles
Depreciation of property, plant and equipment
Amortisation and impairment of capitalised development costs
Earnings before interest, tax, depreciation andamortisation
Loss on disposal of plant, property and equipment
Cost of equity settled employee share schemes
Acquisition related costs paid
Cash payments to the pension scheme more than the charge
to operating profit
Operating cash flows before movements in working
capitalIncrease in inventories
Increase in receivables(Decrease)/increase in payables and provisions
Increase/(decrease) in customer deposits
Cash generated by operations
Interest paid
Income taxes paid
Net cash from operating activities
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
Proceeds from sale of product line and subsidiary
Interest received
Acquisition of subsidiaries, net of cash acquired
Acquisition of property, plant and equipment
Capitalised development expenditure
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of share capital
Repayment of borrowings
Increase in borrowings
Dividends paid
Net cash (used in)/from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Effect of exchange rate fluctuations on cash held
Cash and cash equivalents at end of the period

Increase/(decrease) in cash and cash equivalents
Effect of foreign exchange rate changes on cash and cash
equivalents
Cash outflow from decrease in debt
Cash inflow from increase in debt
Movement in net cash in the period
Net cash at start of the period
Net cash at the end of the period

24.8

3.3

(4.8)

12.0

(0.5)
2.8
(0.8)
2.0
35.1
37.1

0.1
(4.7)
6.0
(2.5)
(1.2)
13.1
11.9

(0.6)
11.4
13.1
(2.5)
22.0
13.1
35.1

*See note 1 for details of re-presentation of comparative information.

Oxford Instruments Plc

11Half Year Results Announcement for the six months ended 30 September 2012

Notes on the Half Year Financial Statements – unaudited
1

BASIS OF PREPARATION OF ACCOUNTS

Oxford Instruments plc (the Company) is a company incorporated in England and Wales. The condensed
consolidated half year financial statements consolidate the results of the Company and its subsidiaries (together
referred to as the Group). They have been prepared and approved by the Directors in accordance with International
Financial Reporting Standard (IFRS) IAS 34 Interim Financial Reporting as adopted by the EU. They do not include allof the information required for full annual financial statements, and should be read in conjunction with the consolidated
financial statements of the Group for the year ended 31 March 2012.
As required by the Disclosure and Transparency Rules of the Financial Services Authority, the half year financial
information has been prepared applying the accounting policies and presentation that were applied in the preparationof the Group’s consolidated financial statements for the year ended 31 March 2012, except as noted below. Additional
information has been included in the Condensed Consolidated Statement of Income in the form of an adjusting items
column which in the opinion of the Directors enables the performance of the business to be more clearly seen.
The financial information contained herein is unaudited and does not constitute statutory accounts as defined by
Section 435 of the Companies Act 2006. The comparative figures for the financial year ended 31 March 2012 are notthe company’s statutory accounts for that financial year. Those accounts have been reported on by the company’s
auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include areference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and(iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The condensed consolidated half year financial statements have been prepared on a going concern basis, based on
the Directors’ opinion, after making reasonable enquiries, that the Group has adequate resources to continue inoperational existence for the foreseeable future.
In its Financial Statements to 31 March 2012 the Group reclassified certain engineering costs incurred in relation to
one-off special customer orders. Such costs are now treated as research and development costs, rather than costs ofsales. This is considered to be a treatment consistent with the Group’s Industry peers. The effect on the Consolidated
Income Statement for the half year to 30 September 2011 was to reduce costs of sales by £1.5m and increase
research and development costs by the same amount, see note 4.
As required by IFRS3 the accounts as at 30 September 2011 have been re-presented in respect of the finalisation of
the acquisition accounting which was provisional at the time the 30 September 2011 accounts were published.
Furthermore the Group has noted that the final dividend for the year to 31 March 2011 should have been recorded as
a liability at 30 September 2011 since it was approved by shareholders on 13 September 2011. Accordingly, theaccounts at that date have been restated to include an amount of £3.5 million as a current liability. Equity at that datehas been reduced by the same amount. There was no impact on the consolidated statement of financial position at 31
March 2011 or 2012.
The principal exchange rates used to translate the Group’s overseas results were as follows:
Half year to
Period end rates
Half year to
30 Sept
30 Sept
2011
2012
US Dollar
1.56
1.61
Euro
1.16
1.26
Yen
120
126
Average translation rates
Half year to 30 September 2012
Quarter 1
Quarter 2
Year to 31 March 2012
Quarter 1
Quarter 2
Quarter 3
Quarter 4

Oxford Instruments Plc

Year to31 March
2012
1.60
1.20
131

US Dollar

Euro

Yen

1.58
1.59

1.23
1.26

127
125

1.63
1.60
1.57
1.58

1.13
1.14
1.17
1.19

132
125
121
125

12

Half Year Results Announcement for the six months ended 30 September 2012

Notes on the Half Year Financial Statements – unaudited (continued)
2

NON-GAAP MEASURESThe Directors present the following non-GAAP measure as they believe it gives a better indication of the underlying
performance of the business.
RECONCILIATION BETWEEN PROFIT BEFORE INCOME TAX AND ADJUSTED PROFIT
Year to31 March
2012
£m

16.9

Half year to
30 Sept2011£m
as represented*
13.1

0.2
0.6
5.4

1.0
0.7
4.3

1.7
(7.0)
1.5
11.2

23.1
(4.1)
19.0

(0.4)
18.7
(3.8)
14.9

(1.5)
42.0
(8.8)
33.2

Half year to
30 Sept2012£mProfit before income tax
Reversal of acquisition related fair value adjustments toinventory
Gain on disposal of product line
Acquisition related costs
Amortisation of acquired intangibles
Mark to market gain in respect of derivative financial
instruments
Adjusted profit before income tax
Share of taxation
Adjusted profit

36.1*See note 1 for details of re-presentation of comparative information.

Adjusted profit before tax excludes the reversal of acquisition related fair value adjustments to inventory to provide an
adjusted profit measure that will include results from acquired businesses on a consistent basis over time to assist
comparison of performance. Acquisition related costs comprise professional fees incurred in relation to mergers andacquisitions activity and any consideration which, under IFRS3 (revised), falls to be treated as a post acquisition
employment expense.
On 20 October 2011 the Group disposed of a product line for a consideration of £8.1m. £1.0m of the consideration
was deferred and was received during the current period. The product line was part of the Industrial Products
segment. The profit on disposal was £7.0m.
On 21 March 2012 the Group transferred its ownership of Technologies and Devices Inc (TDI) to Ostendo, a privately
owned company based in California. The Group has received 650,000 shares of Ostendo common stock plus $0.7m
in cash of which $0.2m was received in October 2012. The Group considers the fair value of the shares to be nil. The
profit on disposal was nil.
Under IAS 39, all derivative financial instruments are recognised initially at fair value. Subsequent to initial recognition,
they are also measured at fair value. In respect of instruments used to hedge foreign exchange risk and interest raterisk the Group does not take advantage of the hedge accounting rules provided for in IAS 39 since that standard
requires certain stringent criteria to be met in order to hedge account, which, in the particular circumstances of theGroup, are considered by the Board not to bring any significant economic benefit. Accordingly, the Group accounts forthese derivative financial instruments at fair value through profit or loss. To the extent that instruments are hedges of
future transactions, adjusted profit for the year is stated before changes in the valuation of these instruments so thatthe underlying performance of the Group can more clearly be seen.
In calculating the share of tax attributable to adjusted profit before tax in the year ended 31 March 2011 a one-off
recognition of deferred tax assets relating to the Group’s UK businesses of £11.3m was excluded. At that time
the Group announced its intention to exclude the reversal of this deferred tax from the calculation of the share of tax
attributable to adjusted profit before tax in the years in which it reverses. In the year ended 31 March 2012 deferred
tax of £4.6m was reversed. In the current period deferred tax of £3.2m has reversed and consequently been excluded
from the tax attributable to adjusted profit before tax.

Oxford Instruments Plc

13

Half Year Results Announcement for the six months ended 30 September 2012

Notes on the Half Year Financial Statements – unaudited (continued)
3

SEGMENT INFORMATIONThe Group has seven operating segments. These operating segments have been combined into three aggregatedoperating segments to the extent that they have similar economic characteristics, with relevance to products andservices, type and class of customer, methods of sale and distribution and the regulatory environment in which they
operate. Each of these three aggregated operating segments is a reportable segment.
The Group’s internal management structure and financial reporting systems differentiate the three aggregatedoperating segments on the basis of the economic characteristics discussed below.
- The Nanotechnology Tools segment contains a group of businesses supplying similar products, characterised by ahigh degree of customisation and high unit prices. These are the Group’s highest technology products serving
research customers in both the public and private sectors.
- The Industrial Products segment contains a group of businesses supplying high technology products andcomponents manufactured in medium volume for industrial customers.
- The Service segment contains the Group’s service business as well as service revenues from other parts of theGroup.
Reportable segment results include items directly attributable to a segment as well as those which can be allocated ona reasonable basis. Inter-segment pricing is determined on an arm’s length basis. The operating results of each are
regularly reviewed by the Chief Operating Decision Maker, which is deemed to be the Board of Directors. Discrete
financial information is available for each segment and used by the Board of Directors for decisions on resource
allocation and to assess performance. No asset information is presented below as this information is not allocated tooperating segments in reporting to the Group’s Board of Directors.
Half year to 30 September 2012

External revenue
Inter-segment revenue
Total segment revenue
Segment operating profit

Nanotechnology
Tools
£m
80.7
0.2
80.9

Industrial
Products
£m
60.9
0.6
61.5

Service
£m
29.2
0.1
29.3

Total
£m
170.8

10.4

7.6

5.8

23.8

Nanotechnology
Tools
£m
70.0
0.4
70.4

Industrial
Products
£m
64.2
0.5
64.7

Service
£m
24.9
24.9

Total
£m
159.1

7.3

6.6

5.0

18.9

Half year to 30 September 2011

External revenue
Inter-segment revenue
Total segment revenue
Segment operating profit

Oxford Instruments Plc

14

Half Year Results Announcement for the six months ended 30 September 2012

Notes on the Half Year Financial Statements – unaudited (continued)
3

SEGMENT INFORMATION (CONTINUED)

Year to 31 March 2012

External revenue
Inter-segment revenue
Total segment revenue

Nanotechnology
Tools
£m
153.3
0.6
153.9

Industrial
Products
£m
128.0
1.1
129.1

Service
£m
56.0
0.3
56.3

Total
£m
337.3

17.3

13.8

11.0

42.1

Half year to
30 Sept2012£mYear to31 March
2012
£m

23.8
-

Half year to
30 Sept2011£m
as represented*
18.9
-

(0.2)
(0.6)
(5.4)
5.0
(5.7)
16.9

(1.0)
(0.7)
(4.3)
5.8
(5.6)
13.1

(1.7)
(1.5)
(11.2)
12.6(11.2)
36.1

Half year to
30 Sept2012£m

Half year to
30 Sept2011
as restated*£mYear to31 March2012
as restated*
£m

12.1
(0.1)
0.4

12.6
(0.1)
0.3

25.8
(0.2)
0.9

(2.1)
1.8

(2.4)
0.9

(5.2)
2.4

12.1

11.3

23.7

Segment operating profit
Reconciliation of reportable segment profit

Operating profit for reportable segments
Other operating income
Reversal of acquisition related fair value adjustments toinventory
Acquisition related costs
Amortisation of acquired intangibles
Financial income
Financial expenditure
Profit before income tax

42.1
7.0

* See note 1 for details of re-presentation of comparative information.

4

RESEARCH AND DEVELOPMENT

Total research and development spend by the Group is as follows:

Research and development expense charged to theconsolidated statement of income
Less: depreciation of R&D related fixed assets
Add: amounts capitalised as fixed assets
Less: amortisation and impairment of R&D costs
previously capitalised as intangibles
Add: amounts capitalised as intangible assets
Total cash spent on research and development during
the period* See Note 1 for details of the change in presentation in respect of Research and Development expenditure. In addition the Group has discovered that certain depreciation and capital expenditures
were double counted in the calculation of cash spent in the prior year on research and development. This has been corrected in the above table resulting in an increase in the reported cash spent
on research and development by £0.3 million in the half year to 30 September 2011 and £1.0 million in the year to 31 March 2012.

Oxford Instruments Plc

15

Half Year Results Announcement for the six months ended 30 September 2012

Notes on the Half Year Financial Statements – unaudited (continued)
5

ACQUISITIONS

Platinum Medical Imaging LLC
On 3 November 2011 the Group acquired 100% of the share capital of Platinum Medical Imaging LLC for an initial
cash consideration of £11.0m.
Further contingent consideration is payable each year until the third anniversary of the acquisition dependent on postacquisition earnings. The amount of this consideration could be between zero and £19.4m. The fair value of theamount likely to be paid is £2.6m and is based on management forecasts of future profitability.
Platinum Medical Imaging LLC is an established US company providing high quality parts and services for MRI(Magnetic Resonance Imaging) and CT (Computed Tomography) medical imaging instruments. It operates from sites
in Florida and California from which the business sells parts, carries out service and maintenance and performs
system rebuilds.
The book and fair value of the assets and liabilities acquired is given in the table below.The business has beenacquired for the purpose of integrating into the Service segment.

Intangible fixed assets
Tangible fixed assets
Inventories
Trade and other receivables
Trade and other payables
Customer deposits
Deferred tax
Overdraft
Net assets acquired
Goodwill
Total consideration
Overdraft acquired
Contingent consideration
Net cash outflow relating to the acquisition

Book value

Adjustments

Fair Value

£m
0.5
0.9
0.6
(0.4)
(0.4)
(0.1)
1.1

£m
12.5
(0.2)
0.8
(0.3)
(0.4)
(0.3)
(0.2)
11.9

£m
12.5
0.3
1.7
0.3
(0.8)
(0.7)
(0.2)
(0.1)
13.0
0.6
13.6
0.1
(2.6)
11.1

The goodwill arising is tax deductible in full and is considered to represent the value of the acquired work force andexpected synergies arising from the integration with the Group’s existing service business.
The book value of receivables given in the table above represents the gross contractual amounts receivable. The fairvalue adjustment to receivables represents the best estimate at the acquisition date of the cash flows not expected tobe collected.
6

TAXATION

The total effective tax rate on profits for the half year is 31% (2011: 32%). The weighted average tax rate in respect ofadjusted profit before tax (see note 2) for the half year is 18% (2011: 20%).
The Group estimates that its full year weighted average tax rate in respect of adjusted profit before tax will be 18%(2011: 20%).

Oxford Instruments Plc

16

Half Year Results Announcement for the six months ended 30 September 2012

Notes on the Half Year Financial Statements – unaudited (continued)
7

EARNINGS PER SHAREa) Basic
The calculation of basic earnings per share is based on the profit or loss for the period after taxation and a weighted
average number of ordinary shares outstanding during the period, excluding shares held by the Employee ShareOwnership Trust, as follows:

Weighted average number of shares outstanding
Less: weighted average number of shares held byEmployee Share Ownership Trust
Weighted average number of shares used in
calculation of earnings per share

Half year to
30 Sept
2012
Sharesmillion
56.2

Half year to
30 Sept
2011
Sharesmillion
53.0

Year to31 March
2012
Sharesmillion
54.2

(0.2)

(0.4)

(0.2)

56.0

52.6

54.0

b) Diluted
The following table shows the effect of share options on the calculation of both adjusted and unadjusted diluted basic
earnings per share.

Number of ordinary shares per basic earnings per
share calculations
Effect of shares under option
Number of ordinary shares per diluted earnings per
share calculations

Oxford Instruments Plc

Half year to
30 Sept
2012
SharesmillionHalf year to
30 Sept
2011
SharesmillionYear to31 March
2012
Sharesmillion

56.0
1.0

52.6
1.6

54.0
1.1

57.0

54.2

55.1

17

Half Year Results Announcement for the six months ended 30 September 2012

Notes on the Half Year Financial Statements – unaudited (continued)
8

DIVIDENDS PER SHARE

The following dividends per share were paid by the Group:

Previous period interim dividend
Previous period final dividend

Half year to
30 Sept
2012
pence
2.772
2.772

Half year to
30 Sept
2011
pence
2.52
2.52

Year to31 March
2012
pence
2.52
6.48
9.00

The following dividends per share were proposed by the Group in respect of each accounting period presented:

Interim dividend
Final dividend

Half year to
30 Sept
2012
pence
3.05
3.05

Half year to
30 Sept
2011
pence
2.77
2.77

Year to31 March
2012
pence
2.772
7.228
10.000The final dividend for the year to 31 March 2012 was approved by shareholders at the Annual General Meeting heldon 11 September 2012. Accordingly is it no longer at the discretion of the company and has been included as a liability
as at 30 September 2012. It was paid on 25 October 2012.
The interim dividend for the year to 31 March 2013 of 3.05 pence was approved by the Board on 13 November 2012,
10% higher than the previous year and has not been included as a liability as at 30 September 2012. The interim
dividend will be paid on 8 April 2013 to shareholders on the register at the close of business on 8 March 2013.

Oxford Instruments Plc

18

Half Year Results Announcement for the six months ended 30 September 2012
Principal Risks and Uncertainties
The Group has in place a risk management structure and internal controls which are designed to identify, manage andmitigate risk.
In common with all businesses, Oxford Instruments faces a number of risks and uncertainties which could have amaterial impact on the Group's long term performance.
On pages 22 and 23 of its 2012 Annual Report and Accounts (a copy of which is available at www.oxfordinstruments.com), the Company set out what the Directors regarded as being the principal risks and uncertainties
facing the Group's long term performance and these are reproduced in the table below. Many of these risks are
inherent to Oxford Instruments as a global business and they remain valid as regards their potential impact during theremainder of the second half of the year.
Specific Risk

Context

Risk

Possible Impact

Technical Risk

The Group provides hightechnology equipment andsystems to its customers.

• Lower profitability
and financial returns.
• Negative impact on theGroup’s reputation.

Economic Environment

The recent global recession
and prevailing economic
downturn have resulted in
cuts to both government andprivate sector spending.
Part of the growth of
Oxford Instruments’ plans is
to come from acquisitions
which provide the Group withcomplementary technologies.

Failure of the advanced
technologies applied by theGroup to produce commercial
products, capable of being
manufactured and soldprofitably.
Demand for the Group’s
products may be lower
than anticipated.

Appropriate acquisition
targets may not be available
in the necessary timescale.
Alternatively, once acquired,targets may fail to provide
the planned value.
The Group’s profit levels are
exposed to fluctuations in
exchange rates.
Failures in the supply chain
impacting sales.

• Lower profitability
and financial returns.
• Management focus taken
away from the corebusiness in order tomanage integration issues.
• Lower profitability
and financial returns.

If these price rises can not bepassed on to customers ascopper prices rise,profitability falls.

• Lower profitability.
• Occasional disruption
to production.

Movements in the actuarial
assumptions may have anappreciable effect on thereported pension deficit.
One critical or a number ofkey employees in an
associated work area leave
the Group.

• Additional cash requiredby the Group to fundthe deficit.
• Reduction in net assets.
• Performance does not meet
expectations.
• Disruption to customers.
• Lower profitability
and financial returns.

Acquisitions

Foreign exchange
volatility
Outsourcing

Raw material volatility

Pensions

PeopleA significant proportionof the Group’s profit is madein foreign currencies.
The Group’s strategic plan
includes the outsourcing ofa significantly higher
proportion of the costs of its
products to benefit from
economies of scale andnatural currency hedges.
The Group relies on thepurchase of a significant
amount of copper for the
production of its
superconducting wire.
The Group’s calculated
pension deficit is sensitive
to changes in the actuarial
assumptions.
A number of the Group’s
employees are businesscritical. The Group’s growthplan requires people andstructure capable ofmanaging the increasing sizeand complexity of thebusiness.

• Lower profitability
and financial returns.

• Disruption to customers.
• Negative impact on theGroup’s reputation.

The impact of the economic and end market environments in which the Group's businesses operate are considered in
the Half Year Statement of this Half Year Report, together with an indication if management is aware of any likely
change in this situation.

Oxford Instruments Plc

19

Half Year Results Announcement for the six months ended 30 September 2012

Responsibility Statement of the Directors in respect of the Half Year Financial Statements
We confirm that to the best of our knowledge:•
the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial
Reporting as adopted by the EU;•
the interim management report includes a fair review of the information required by:(a)DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events thathave occurred during the first six months of the financial year and their impact on the condensed set offinancial statements; and a description of the principal risks and uncertainties for the remaining six
months of the year; and(b)
DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that havetaken place in the first six months of the current financial year and that have materially affected thefinancial position or performance of the entity during that period; and any changes in the related party
transactions described in the last annual report that could do so.
Jonathan Flint Chief Executive
13 November 2012

Oxford Instruments Plc

Kevin Boyd Group Finance Director

20

Half Year Results Announcement for the six months ended 30 September 2012

Independent Review Report by KPMG Audit Plc to Oxford Instruments plc
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearlyfinancial report for the six months ended 30 September 2012 which comprises the Condensed Consolidated
Statement of Income, the Condensed Consolidated Statement of Comprehensive Income, Condensed Consolidated
Statement of Financial Position, Condensed Consolidated Statement of Changes in Equity, Condensed Consolidated
Statement of Cash Flows and the related explanatory notes. We have read the other information contained in the halfyearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with
the information in the condensed set of financial statements.
This report is made solely to the company in accordance with the terms of our engagement to assist the company inmeeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Services
Authority ("the UK FSA"). Our review has been undertaken so that we might state to the company those matters weare required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company for our review work, for this report, or for theconclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are
responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FSA.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as
adopted by the EU. The condensed set of financial statements included in this half-yearly financial report has been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the halfyearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410
Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing(UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 September 2012 is not prepared, in allmaterial respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FSA.

S Haydn-Jonesfor and on behalf of KPMG Audit Plc
Chartered Accountants
One Snowhill, Snow Hill Queensway
Birmingham, B4 6GH
13 November 2012

Oxford Instruments Plc

21

Half Year Results Announcement for the six months ended 30 September 2012

Notes to Editors
Oxford Instruments designs, supplies and supports high-technology tools and systems with a focus on research andindustrial applications. It provides solutions needed to advance fundamental physics research and its transfer into
commercial nanotechnology applications. Innovation has been the driving force behind Oxford Instruments' growth andsuccess for over 50 years, and its strategy is to effect the successful commercialisation of these ideas by bringing
them to market in a timely and customer-focused fashion.
The first technology business to be spun out from Oxford University over fifty years ago, Oxford Instruments is now a
global company with over 1900 staff worldwide and is listed on the FTSE250 index of the London Stock Exchange(OXIG). Its objective is to be the leading provider of new generation tools and systems for the research and industrial
sectors.
This involves the combination of core technologies in areas such as low temperature, high magnetic field and ultrahigh vacuum environments, Nuclear Magnetic Resonance, X-ray, electron and optical based metrology, and advanced
growth, deposition and etching.
Oxford Instruments aims to pursue responsible development and deeper understanding of our world through scienceand technology. Its products, expertise, and ideas address global issues such as energy, environment, security andhealth.

Oxford Instruments Plc

22