e2v technologies plc
106 Waterhouse Lane
Chelmsford, Essex
London CM1 2QU
Tel: +44 (0) 1245 493 493
Fax: +44 (0) 1245 492 492
www.e2v.com
Investor relations enquiries to:
investorfeedback@e2v.com
OUR VISION IS:
To change the world for the better using our skills in material science and expertise in 
advanced technology.
OUR MISSION IS:
To place the customer at the heart of our business, providing products that offer discriminating
levels of performance and enhance their competitive advantage, thereby maximising our collective
return on innovation. In doing so, we will be recognised by both our customers and competitors as 
a premium quality supplier of enabling technologies that push scientific boundaries to the next 
level and our aim is to be number one or two in the markets in which we choose to compete.
OUR VALUES ARE:
Connectivity: Making the most out of our connections within the Company and with our customers,
suppliers and stakeholders worldwide. Our business relies on long-term partnerships.
Innovation: Placing e2v technologies at the forefront of new technologies and new thinking.
Integrity: Committing to being honest, unambiguous, clear and straightforward in all our dealings
with people throughout our business activities and operations.
Raising the bar: The continuous improvement of our products and how we work.
01 Financial highlights
02 Chairman’s statement
03 Business overview
04 Chief Executive’s report
13 Financial review
16 Board of Directors
18 Directors’ report
19 Corporate Governance report
22 Corporate Social Responsibility
24 Directors’ Remuneration report
27 Directors’ responsibilities
28 Independent auditor’s report
29 Contents to the financial statements
59 Financial record
60 Notice of Annual General Meeting
INTRODUCTION e2v ANNUAL REPORT AND ACCOUNTS 2005
e2v technologies plc Annual Report and Accounts 2005
e2v technologies plc
ANNUAL REPORT AND ACCOUNTS 2005 e2v technologies plc
106 Waterhouse Lane
Chelmsford, Essex
London CM1 2QU
Tel: +44 (0) 1245 493 493
Fax: +44 (0) 1245 492 492
www.e2v.com
Investor relations enquiries to:
investorfeedback@e2v.com
OUR VISION IS:
To change the world for the better using our skills in material science and expertise in 
advanced technology.
OUR MISSION IS:
To place the customer at the heart of our business, providing products that offer discriminating
levels of performance and enhance their competitive advantage, thereby maximising our collective
return on innovation. In doing so, we will be recognised by both our customers and competitors as 
a premium quality supplier of enabling technologies that push scientific boundaries to the next 
level and our aim is to be number one or two in the markets in which we choose to compete.
OUR VALUES ARE:
Connectivity: Making the most out of our connections within the Company and with our customers,
suppliers and stakeholders worldwide. Our business relies on long-term partnerships.
Innovation: Placing e2v technologies at the forefront of new technologies and new thinking.
Integrity: Committing to being honest, unambiguous, clear and straightforward in all our dealings
with people throughout our business activities and operations.
Raising the bar: The continuous improvement of our products and how we work.
01 Financial highlights
02 Chairman’s statement
03 Business overview
04 Chief Executive’s report
13 Financial review
16 Board of Directors
18 Directors’ report
19 Corporate Governance report
22 Corporate Social Responsibility
24 Directors’ Remuneration report
27 Directors’ responsibilities
28 Independent auditor’s report
29 Contents to the financial statements
59 Financial record
60 Notice of Annual General Meeting
INTRODUCTION e2v ANNUAL REPORT AND ACCOUNTS 2005
e2v technologies plc Annual Report and Accounts 2005
e2v technologies plc
ANNUAL REPORT AND ACCOUNTS 2005 e2v history
Company supplies 
radio frequency sources
(magnetrons) for air 
and land defences
Name of company changes
to English Electric Valve Co.
Ltd and is headed by Sir
George Horatio Nelson
First ceramic Hydrogen
Thyratrons are introduced
for heat-efficient high-
voltage switching used 
in high energy physics
First Queen’s Award 
received for Technological
Achievement 
First portable thermal
imager developed for trial
with the UK fire brigades
Introduced revolutionary
high sensitivity image
sensor technology (L3
Vision) for day/night use 
EEV Ltd becomes one of 
the first companies in the
UK to gain ISO14001:
1996 certification
e2v initiates presence in
China working with the
China Britain Business Council
e2v strengthens its 
links with academia by 
opening the e2v Centre 
for Electronic Imaging  
at Brunel University
e2v awarded the flight
phase contract to supply the
European Space Agency with
the CCD imaging sensors 
for the GAIA star mapping
mission launching in 2011
e2v technologies floats on
the London Stock Exchange
and becomes a plc
e2v wins eleventh Queen’s
Award for Enterprise
2000 portable thermal
imaging cameras sold to 
the US Navy
French office established 
in Paris 
First CCD (imaging source) 
is developed 
English Electric Valve Co. Ltd
recognises the importance
of the US market and opens
its first office in Buffalo, NY
English Electric Valve 
Co. Ltd wins an EMMY for
outstanding contribution 
to the Broadcast Industry 
for its Image Orthicons
English Electric Valve Co. Ltd
supplies Image Orthicons
used in TV broadcast
cameras for the coverage 
of the Coronation of 
Queen Elizabeth II at
Westminster Abbey
English Electric Company
acquires vacuum tube
technology
1944
1946
1947
1953
1961
1962
1968
First major contract on
Panavia Tornado
English Electric Valve Co. Ltd
produces first full colour
large-screen TV for 
outside events
EEV Ltd supplies CCD image
sensors into the XMM
Newton Space Mission – 
one of the first cornerstone
missions by the European
Space Agency
Marconi Applied Technologies
makes a major breakthrough
in the US market by supplying
CCDs to NASA for the Hubble
Space Telescope
Marconi Applied Technologies
changes its name to e2v
technologies following a
management buy-out 
First major contract for e2v’s
adaptive cruise control for the
automotive market 
First dental CCD sensors
delivered to customers
reducing the x-ray dose
required by 80%
EEV Ltd becomes a major
contributor into the
Eurofighter (Typhoon)
programme
EEV Ltd changes its 
name to Marconi Applied
Technologies as part 
of Marconi’s branding
strategy 
English Electric Valve Co. Ltd
formally changes its name to
EEV Ltd
1972
1973
1979
1981
1983
1988
1991
1992
1997
1999
2001
2002
2004
2005
1960
e2v expands its sales
channels by opening 
a German office 
in Munich
2003 e2v history
Company supplies 
radio frequency sources
(magnetrons) for air 
and land defences
Name of company changes
to English Electric Valve Co.
Ltd and is headed by Sir
George Horatio Nelson
First ceramic Hydrogen
Thyratrons are introduced
for heat-efficient high-
voltage switching used 
in high energy physics
First Queen’s Award 
received for Technological
Achievement 
First portable thermal
imager developed for trial
with the UK fire brigades
Introduced revolutionary
high sensitivity image
sensor technology (L3
Vision) for day/night use 
EEV Ltd becomes one of 
the first companies in the
UK to gain ISO14001:
1996 certification
e2v initiates presence in
China working with the
China Britain Business Council
e2v strengthens its 
links with academia by 
opening the e2v Centre 
for Electronic Imaging  
at Brunel University
e2v awarded the flight
phase contract to supply the
European Space Agency with
the CCD imaging sensors 
for the GAIA star mapping
mission launching in 2011
e2v technologies floats on
the London Stock Exchange
and becomes a plc
e2v wins eleventh Queen’s
Award for Enterprise
2000 portable thermal
imaging cameras sold to 
the US Navy
French office established 
in Paris 
First CCD (imaging source) 
is developed 
English Electric Valve Co. Ltd
recognises the importance
of the US market and opens
its first office in Buffalo, NY
English Electric Valve 
Co. Ltd wins an EMMY for
outstanding contribution 
to the Broadcast Industry 
for its Image Orthicons
English Electric Valve Co. Ltd
supplies Image Orthicons
used in TV broadcast
cameras for the coverage 
of the Coronation of 
Queen Elizabeth II at
Westminster Abbey
English Electric Company
acquires vacuum tube
technology
1944
1946
1947
1953
1961
1962
1968
First major contract on
Panavia Tornado
English Electric Valve Co. Ltd
produces first full colour
large-screen TV for 
outside events
EEV Ltd supplies CCD image
sensors into the XMM
Newton Space Mission – 
one of the first cornerstone
missions by the European
Space Agency
Marconi Applied Technologies
makes a major breakthrough
in the US market by supplying
CCDs to NASA for the Hubble
Space Telescope
Marconi Applied Technologies
changes its name to e2v
technologies following a
management buy-out 
First major contract for e2v’s
adaptive cruise control for the
automotive market 
First dental CCD sensors
delivered to customers
reducing the x-ray dose
required by 80%
EEV Ltd becomes a major
contributor into the
Eurofighter (Typhoon)
programme
EEV Ltd changes its 
name to Marconi Applied
Technologies as part 
of Marconi’s branding
strategy 
English Electric Valve Co. Ltd
formally changes its name to
EEV Ltd
1972
1973
1979
1981
1983
1988
1991
1992
1997
1999
2001
2002
2004
2005
1960
e2v expands its sales
channels by opening 
a German office 
in Munich
2003 FINANCIAL HIGHLIGHTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 1
Financial highlights
For the year ended 31 March 2005
Year ended Year ended
31 March 2005 31 March 2004
£ million £ million
Turnover 100.5 97.6
Operating profit, before exceptional items and amortisation 12.4 11.5
Operating profit, before taxation and interest 9.2 9.9
Profit on ordinary activities after taxation 2.2 3.3
Net assets 34.4 7.1
Net (borrowings) (21.8) (44.3)
Dividend per share (pence) 4.53p –
Medical and Science £18.2m
Aerospace and Defence £10.8m
Commercial and Industrial £23.5m
Sensors
Electronic tubes
Electronic tube sales Sales comparison
2003 2004 2005
• Group sales break through £100m mark for the first time.
• Strong performance from sensors with reported sales growth of 9%. Growth in all sectors, but 
in particular from high performance imaging products for medical and science applications. 
• Good underlying profit performance despite adverse currency impact of a weak US$.
• Operating profit before goodwill and exceptional items up 7.5% at £12.4m (2004: £11.5m).
Exceptional costs of £1.9m relating to the flotation reduce reported operating profit to £9.2m
(2004: £9.9m).
• Maiden final dividend of 3.9 pence per share in line with guidance given at time of flotation 
(total 4.53 pence for the year).
£60m
£50m
£40m
£30m
£20m
£10m
Medical and Science £15.4m
Aerospace and Defence £16.8m
Commercial and Industrial £15.9m
Sensor sales George Kennedy
Chairman
OVERVIEW
e2v technologies floated on the London
Stock Exchange in July 2004 following two
years as a private equity backed limited
company. We are therefore reporting full
year results as a publicly listed company 
for the first time. 
We are pleased to report positive progress
across a number of fronts for the year 
ended 31 March 2005. Sales breaking the
£100m mark at £100.5m (2004: £97.6m)
represented a significant milestone for the
Group, with year on year growth at reported
exchange rates of 3% (7% at constant
exchange rates). Operating profit (before
amortisation of goodwill and exceptional
items) was £12.4m (2004: £11.5m),
representing a 7.5% increase year on year,
despite the continued weakness of the 
US$ relative to sterling and the Group’s
increased success in the United States 
and other US$ denominated markets.
The statutory operating profit (after
amortisation of goodwill and exceptional
items) was £9.2m (2004: £9.9m), the fall
being primarily due to the £1.9m of IPO
costs incurred at the flotation. Profits 
after interest and tax amount to £2.2m
(2004: £3.3m).
Sales growth has been derived from the
sensors product group, in particular high
performance imaging technology for
applications within the scientific, medical
and aerospace markets. The electronic 
tube product group performed consistently,
providing modest sales growth year on 
year at ‘like for like’ exchange rates, 
and underpinning the performance of 
the sensors group with a solid, recurring
revenue stream, predominantly from spares.
DIVIDEND
Following the interim dividend of 0.63 pence 
per share, the Board has declared a final
dividend of 3.9 pence per share, in line with
guidance given during the flotation and
reflecting the proportion of the year that 
the Group has been listed.
THE BOARD
Prior to the flotation in July 2004, the Board
was restructured to take account of the
Group’s future requirements as a plc. 
I am pleased to report that the Board has a
good balance of both corporate and specific
industry experience. In addition to myself as
Chairman, we have three Non-Executive
Directors and two Executive Directors. Brief
CVs are included within the Annual Report. 
OUTLOOK
Strong demand across a number of 
fronts, along with continued focus on
operational efficiencies, gives us confidence
that the Group is well placed to continue
delivering growth.
George Kennedy
Chairman
CHAIRMAN’S STATEMENT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 2
Chairman’s statement Business overview
SENSORS
Our sensor technology
capabilities are extensive. 
We supply the ultimate in
image sensors for space
mission instruments, such as
the Hubble Space Telescope,
and for use by dentists to
capture digital images of teeth.
Products include: image
sensor charge coupled devices
(CCDs) and cameras, solid
state microwave components,
thermal imaging cameras and
gas sensors.
• Dental x-ray
• Mammography
• Life science applications
• Military surveillance, 
targeting and guidance
• Space based imaging 
and astronomy
• Radar and electronic warfare
• Marine radars
• Industrial safety
• Automotive radars and alarms
• Cameras used by fire fighters
• Radiotherapy cancer
treatments
• Microwave medical therapy 
• High-energy physics
• Radar
• Electronic Countermeasures
(ECM)
• Electronic warfare
• Satellite communications
• TV Broadcast
• Satellite communications
• Marine radar
• Food/industrial processing
ELECTRONIC TUBES  
Our range of high power
vacuum tubes are the enabling
technology behind a diverse
range of applications from 
the transmission of TV 
signals to life saving cancer
radiotherapy machines.
Products include: magnetrons,
thyratons, klystrons and
inductive output tubes 
(IOTs), modulators, travelling
wave tubes (TWTs) and 
satcom amplifiers.
MEDICAL AND SCIENCE AEROSPACE AND DEFENCE COMMERCIAL AND INDUSTRIAL Keith Attwood
Chief Executive Officer
INTRODUCTION
e2v designs and manufactures highly
specialised components and subsystems.
Products fall into the category of either
sensors or electronic tubes and are supplied
to niches within three market sectors.
The electronic tubes product group is
mature, with relatively low growth but high
recurring revenues, as spares account for
approximately 50% of annual sales. In
contrast, the sensors business is driving the
organic sales growth of the business, and 
the establishment of the sensors business
has largely been facilitated by the profits
generated by the electronic tubes business.
Our strategy has four aspects:
• To focus our resources on high growth/
high margin product opportunities in
current and adjacent niche market sectors.
• To extend our scope of supply, where
appropriate, thereby maximising revenues
from established market positions as well
as developing new market positions.
• To acquire complementary businesses
and technologies to accelerate growth.
• To continue our internal focus on
productivity improvements.
e2v is well established with long-term
customer relationships at the heart of the
business. The Company is international in
nature, exporting 75% of sales in 2004/05
from the UK, with operations in the USA,
France and Germany.
BUSINESS OVERVIEW
The sensors product group continued to grow
positively overall at over 9.1% year on year 
at reported exchange rates (13.2% at ‘like 
for like’ exchange rates). 
The electronic tubes product group saw
modest growth of 2.2% year on year at ‘like
for like’ exchange rates, but declined by
1.9% at reported exchange rates. 
Whilst the order book for the Group at 
31 March 2005 was £74m, compared with
£78m at 31 March 2004, this was primarily
due to timing issues with the receipt of
programme orders and the practice of placing
multi-year orders in certain sectors, such as
radiotherapy within electronic tubes. Since
year end major contract wins from Dentrix
for dental CCDs and ESA for Space CCDs
have strengthened the order book and our
major radiotherapy OEMs are expected to
place follow-on orders in 2006, as their current
orders placed between 2002 and 2004 are
completed. Overall, the order book represents
normal levels of visibility for this business.
The sensors product group’s order book was
£33.8m (2004: £33.4m) reflecting increases
within the Medical and Science sector. For the
electronic tubes product group the order
book amounted to £40.2m (2004: £44.9m).
The difference year on year reflects the
phasing of radiotherapy orders in the Medical
and Science sector, mentioned above.
The 7.5% growth in operating profit (before
amortisation of goodwill and exceptional
items) is a function of both sales growth 
and our continued attention to internal
efficiencies. Operating profit per employee
increased 7.1% against the prior year.
Gross margins were maintained year on 
year at 34.5% despite the adverse impact 
of exchange rate movement. The US$ to £
average exchange rate weakened from $1.70
to $1.85 between the two reporting periods,
consequently reducing the reported value of
US$ sales, principally to the USA, by £3.7m.
Adjusted earnings per share (earnings
before exceptional items) were up at 
11.07 pence (2004: 10.33 pence) per share. 
This increase positively endorses the twin
track strategy of focusing equally on growth
and internal efficiencies.
Reported earnings per share amounted to
4.59 pence compared with the 2004 figure
of 9.19 pence which reflects the effect of
additional exceptional items reported during
the current year.
CHIEF EXECUTIVE’S REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 4
Chief Executive’s report Net borrowings at 31 March 2005 were
£21.8m (2004: £44.3m), whilst net cash flow
from operating activities, after exceptionals,
was £10.8m (2004: £20.2m). The difference
compared to last year is primarily due to 
the unwinding of a particularly favourable
working capital position at 31 March 2004,
(when the financing of government contracts
was in advance of commitments to suppliers
and extended terms had been negotiated on
capital expenditure contracts) together with
the requirement to fund the flotation costs.
Net cash outflow before financing was
£3.2m (2004: inflow £6.3m), primarily
due to the lower cash flow from operating
activities and exceptional interest payments,
associated with the capital restructuring
prior to the flotation in July 2004.
SENSORS
Sensors product group sales grew by 
9.1% to £48.1m at reported exchange rates
(13.2% at ‘like for like’ exchange rates). 
This growth came across all market sectors,
primarily driven by our high performance
imaging products. The strong growth in this
area more than offset the anticipated
reduction in sales of our Argus
®
fire fighters’
thermal imaging camera, within the
Commercial and Industrial sector, which
benefited in 2004 from an exceptional UK
government procurement programme.
Medical and Science
Sales in this sector continued the strong
performance seen in the first half of the
year, growing by 23% to £15.5m (2004:
£12.5m). Over the last three years, we have
seen in excess of a twofold increase in sales
for this sector.
The growth in 2005 has been dominated by
our continued success in the dental sector,
where customers in the USA and mainland
Europe have been seeking to increase
volumes throughout the second half of the
year. e2v supplies devices used for digital
dental x-ray imaging, which is virtually real-
time and offers lower radiation exposure
when compared to traditional film based
systems. Year on year, we have seen sales
into the dental sector increase by 37% at
reported rates of exchange. This demand
has continued into the first half of 2005,
where we are undertaking actions to expand
capacity at our manufacturing facility.
Product supplied into instrument
manufacturers servicing the needs of life
science companies working on, for example,
drug discovery, has also seen positive
growth of 15% year on year at reported 
rates of exchange.
Aerospace and Defence
Overall, sales in this sector grew by 4.2% to
£16.8m (2004: £16.1m). Significant growth
of 13% was achieved in high performance
imaging but there was an 8% decline for
solid state microwave devices.
The 13% growth in high performance
imaging was largely driven by continued
strong performance in the space and
astronomy sectors as deliveries were made
to a number of European programmes. The
development phase of the European Space
CHIEF EXECUTIVE’S REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 5
X-RAY DENTAL SENSORS
e2v was contracted in 2003 by US-based
Dentrix Dental Systems to design a
customised high-performance x-ray dental
CCD sensor that was easy to position 
in the patient’s mouth, and offered
improved patient comfort. e2v designed,
manufactured and delivered the new
dental CCD to the specified size,
performance, image quality and cost
requirements. Dentrix saw e2v’s CCD and
Scintillator technology as providing them
with the performance required to give
them a leading position in the market. 
Dentrix’s new system, the ImageRAYi,
offers advantages over traditional film
based systems including provision of data,
which is virtually real-time, has lower
radiation exposure and improved data
storage and transmission. To underline the
success of the system e2v has recently
been awarded a new contract with Dentrix
for US$5.7m (£3.0m). 
Dentrix Dental Systems is part of the 
Henry Schein Inc. health care group, one 
of the largest providers of software and
other technology-based products and
services for dental practices in North
America and Europe, serving over 475,000
customers with 90,000+ products in more
than 125 countries. CHIEF EXECUTIVE’S REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 6
Chief Executive’s report continued
EUROPEAN SPACE AGENCY TO LAUNCH OUR LARGE AREA CCD SENSORS
Artist’s impression Agency (ESA) star mapping programme,
GAIA, was completed in the second half 
and we were extremely pleased to win the
contract in June 2005 for the first phase of
the production element of this programme
for €14.3m. Cameras using our ultra high
sensitivity L3Vision™ devices achieved over
£1.0m of sales for the year to this sector, a
ten-fold increase against 2004, primarily 
for surveillance applications. 
The 8% decline in sales of our solid state
microwave devices used in defence
applications reflects the completion of 
a number of relatively small individual
programmes, rather than a material change
in our competitive position. New orders
continue to be booked for tranche 2 of the
Typhoon (Eurofighter) programme, and 
there has been significant bidding activity
associated with our electronic safety and
arming unit (ESAU) technology for a number
of different missile platforms.
Commercial and Industrial
Overall, sales in this sector grew by 2.7%
to £15.9m (2004: £15.5m).
Continued progress is being made in our
component supply into Adaptive Cruise
Control systems in the automotive sector.
Sales doubled year on year, to a modest
£1.0m. This market remains very much in its
infancy, and is anticipated to double again
in the current year. Also in automotive we
saw positive growth in our microwave car
alarm business, acquired the previous year,
and this acquisition contributed £1.4m of
sales growth. We were also successful in
winning a new customer in the form of
Daimler Chrysler. Whilst we supplied this
technology to MG Rover, annual sales in
2004/05 amounted to less than £0.2m.
Their outstanding liability at the year end 
is not material.
Following the particularly large order from
the UK government in 2004, sales of our
Argus
®
* thermal imaging camera were 37%
down at £4.9m (2004: £7.7m). This was
partly offset by growth in our Radio
Evacuation and Distress System (REDS), 
also servicing the fire fighter/emergency
services market, which achieved sales of
£1.7m (2004: £1.0m). We are partnering
with one of the world’s leading suppliers 
of breathing apparatus (BA) to supply our 
sub-system integrated into a BA platform. 
To date, we are achieving sales in the USA
and are currently engaged in a development
programme with this partner to launch a
system for operation in Europe and Asia during
the latter part of the current financial year.
ELECTRONIC TUBES
Electronic tube product group sales at
£52.4m were £1.0m below last year’s level
at reported rates of exchange, but grew a
modest 2.2% at ‘like for like’ exchange rates. 
This was consistent with the half year, where
the impact of defence spending cuts in the UK
and a more difficult environment for export
licences within Aerospace and Defence, was 
not completely offset by the growth achieved
in the Commercial and Industrial sector.
Medical and Science
Overall, sales in this sector showed growth
of 0.8% to £18.2m (2004: £18.0m).
In the radiotherapy sector we saw flat revenues
for our Magnetron electronic tubes. This
reflects a degree of overstocking by some of
our OEM customers in 2004 and the weakness
of the US$. Our compact modulator product
supplied to TomoTherapy Inc, delivered
strong growth, achieving sales in excess of
£1.3m (2004: £0.4m). This US-based customer
continues to achieve market success with its
unique radiotherapy system. There are now
over 30 systems in clinical operation and
many more being commissioned. 
Also in this sector, we saw positive year 
on year growth of equipment supplied 
into a microwave endometrial ablation
application, which is a quick and relatively
simple alternative treatment for menorrhagia
(excessive menstrual bleeding). 
CHIEF EXECUTIVE’S REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 7
The European Space Agency will launch 
its cornerstone mission, GAIA, in 2011. 
The mission’s aim is to precisely map 
our galaxy, the Milky Way, by logging 
the position, colour and radial velocity of 
1 billion stars and over 100,000 objects in
the solar system. GAIA will continuously
scan the Milky Way looking deeper into our
galaxy than humanity has ever seen before
and creating the largest, most accurate 3D
map to date. It is hoped that as many as
10,000 new planets will be discovered. 
This £9.6m three-year flight phase 
contract was signed in June 2005 and is the
culmination of a successful two-year £1.3m
contract for the design and development 
of a custom CCD image sensor specifically
tailored to the needs of the GAIA
programme. The GAIA project will involve
the manufacture in significant volumes of
some of the highest performance large
area CCD image sensors ever produced. 
A subcontractor selected by ESA, will
ultimately assemble the CCD image
sensors into the largest focal plane ever
built and flown in space. This contract
clearly confirms e2v’s position as one 
of the world’s pre-eminent suppliers of
specialised imaging technology to the
space market. 
*Argus – Trademark licensed from Argus Industries, Inc. CHIEF EXECUTIVE’S REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 8
Chief Executive’s report continued
Whilst sales more than doubled to £1.5m, 
as the customer launched the product in the
USA, we do not expect similar performance
levels in the current financial year now that
initial demand has been met.
Investment worldwide in the next generation
of major scientific facilities in national
laboratories over the next decade will be
significant. During the last 12 months e2v
has secured early engagement in a number
of key projects. Within a collaboration
agreement with Daresbury Laboratory 
in the UK, the first prototypes of a high
frequency Inductive Output Tube (IOT) 
were supplied to the £150m 4GLS (Fourth
Generation Light Source) project. This
accelerator-based light source, the very 
first of perhaps a dozen of its kind in 
the world, will provide intense infra-red,
ultraviolet and soft x-ray radiation for 
the study of protein folding and chemical
reactions/molecular interactions in real time.
e2v also won the first contract for a new class
of RF Klystron for Cornell University in the
USA to drive the injector LINAC that will feed
into their version of a 4GLS system. 
Aerospace and Defence
Overall, sales in this sector showed a decline
of some 19% to £10.8m (2004: £13.4m).
Our electronic tube business to the defence
sector has suffered from the UK government’s
decision to scale back the Tornado fleet and
other radar platforms. In addition, we have
continued to see a tighter export licence
environment, for certain Asian territories,
which has further constrained sales.
More positively, during the second half of 
the year we won a contract for the supply 
of travelling wave tubes (TWTs) for the
Typhoon towed decoy system and have won
all contracts let to date for this platform.
This strengthens our position with North
American system integrators, Raytheon 
and BAE Systems, for the next generation 
US Navy and Airforce fast jet towed decoy
programmes. We expect to see further
progress on these large projects during 
the latter part of the current financial year
although the timing of defence related
projects is never certain.
Commercial and Industrial
Overall, sales in this sector showed growth
of 6.4% to £23.5m (2004: £22.1m).
Growth was achieved across a number 
of different sectors, including industrial
applications and marine radar.
We supply radio frequency (RF) sources to 
a number of OEMs that manufacture marine
radars for commercial and leisure vessels.
We have seen over 15% growth in this
sector to £4.3m (2004: £3.7m), and growth
is continuing into the current financial 
year. A project is well underway to increase
manufacturing capacity to match demand.
Sales in high power switching products used
in broadcast, industrial heating and laser
applications have grown 25%, year on year,
to £3.1m (2004: £2.5m) across many
individual customers.
We have also been successful in strengthening
our position with key European OEMs for
power tubes in industrial applications and
here we have seen growth of over 11%
to £3.8m (2004: £3.5m) as well as the
introduction of an upgraded high efficiency
amplifier for terrestrial broadcast primarily
for the US, UHF TV transmitter market.
e2v has been developing and producing
microwave components for the automotive
industry that enhance driver comfort and
vehicle security for a number of years. 
The most notable innovation during this
period is e2v’s patented Graded Gap
Gunn Diode (G3D), which is a critical
component in radar sensors used 
for Adaptive Cruise Control (ACC)
applications. e2v’s G3D generates the
millimetre wave power which enables 
the long-range radar sensor to detect the
position and speed of objects in front 
of the vehicle and adjust the vehicle’s
speed to maintain a safe driving distance. 
Currently e2v is involved in a joint
industry project called SLIMSENS (Short
and Long Range Integrated Multifunction
Radar and Communications Sensors),
which is developing the next generation
in driver safety. This next generation
technology could provide capabilities
such as pedestrian detection, improved
lane adherence, automated hands-free
motorway driving, and the ability to 
stop and start the car completely, 
while in traffic.  
ADAPTIVE CRUISE CONTROL CHIEF EXECUTIVE’S REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 9
INTERNATIONAL DEVELOPMENT
In the year ended 31 March 2005, 75%
(2004: 69%) of sales were derived from
exports to over 50 different countries.
Across the business, continued strong
performance in the United States reflects
our ability to win business in the face of US
domestic competition. Sales to the USA at
£35.8m (2004: £30.3m), represent a year 
on year growth of over 18% at reported
exchange rates, and 30% at ‘like for like’
rates. This remains by far our largest 
single geographic market, but our success
increases our exposure to transactional risk
associated with exchange rate fluctuations.
Sales in the UK were £25.1m, representing 
a decline year on year of some 16%,
primarily associated with the reduction 
in supply of electronic tubes to the UK
defence industry and the completion of the
one-off UK government purchase of thermal
imaging cameras.
In the rest of the world, sales grew to
£39.7m (2004: £37.4m), representing a 6%
increase year on year. In addition to our
existing routes to market, in January 2005
we established a business development
office in China to help e2v technologies
make the most of the opportunities created 
by this rapidly expanding economy.
We continue to focus strongly on improving
customer access to our distributors and
developing the skills in our distributor base
to better serve those customers. We provide
regular newsletters updating our partners 
on worldwide business developments, and
bi-annually we bring our distributors together
to share e2v’s strategy, key targets and
forthcoming product developments. All of
our distributors have access to a tailored
‘extranet’ to obtain, for example, sales
collateral, including product presentations.
We continue to be rigorous in managing 
our distributors, establishing quarterly
objectives that are subsequently reviewed.
Consistent underperformers are replaced.
TOMOTHERAPY TREATS 300 PATIENTS PER DAY
Solid state compact modulator systems
from e2v are enabling US-based
TomoTherapy Inc. to treat over 300 cancer
patients each day with radiotherapy. 
The compact modulator is a high voltage,
direct switching unit specially designed for
Linear Accelerator (LINAC) machine use.
Combined with an e2v magnetron, and
other system components, it provides the
high-energy, pulsed microwave source
required to drive the LINAC that provides
the life-saving x-rays used in the imaging
and treatment of tumours. 
e2v’s solid state modulator is more stable
than traditional modulators and its
computer-controlled and detailed
diagnostics capability offers users significant
advantages. As a result, the e2v modulator-
magnetron combination is able to provide
patients with highly conformal, image-
guided Intensity Modulated Radio Therapy
(IMRT) treatment, which reflects the progress
TomoTherapy and e2v technologies have
made to date, in enhancing traditional
radiotherapy treatment. 
TomoTherapy now have over 30 treatment
sites in North America, where their
equipments are fully clinical and treating
patients. New sites are becoming clinical
each month, including sites in Europe 
and Asia.  CAPITAL INVESTMENT AND 
RESEARCH AND DEVELOPMENT 
We continue to invest in the future of 
the business.
Expenditure on capital equipment can
broadly be categorised as £0.6m on
infrastructure and building maintenance,
£4.7m on manufacturing plant expansion,
replacement or maintenance, £1.5m on IT,
including the SAP system implementation
and £0.8m on other items.
In manufacturing, the main area of investment
has been in the expansion of the wafer
fabrication facility for our high performance
imaging products. This will continue
throughout the current financial year, 
as we seek to maintain sufficient capacity 
to meet the demands of our customers,
particularly for dental x-ray within Medical
and Science and space science projects
within Aerospace and Defence.
Other notable manufacturing capital projects
include the creation of a semi-automated
assembly line for specialised components
used in Adaptive Cruise Control radar for the
automotive sector.
Our SAP project continues broadly to
schedule with all of our domestic and
international operations now operating on 
a single integrated IT platform for the first
time ever. The next major phase will be the
role out of shop floor controls and other
adjacent packages, such as Product Data
Management (PDM).
Our R&D spend into product maintenance/
support and new products was broadly
divided into £2.0m for electronic tubes and
£3.3m for sensors.
High performance imaging absorbs the
majority of R&D expenditure in the sensors
product group. In particular, we continue to
invest in our L3Vision™ ultra high sensitivity
devices and cameras, which are proving
successful in our markets.
The other significant sensors investment
programme is focused around our solid state
microwave sensing components in radar, 
for commercial and defence applications.
Major programmes supported in electronic
tubes were a new satcom amplifier to be
launched in September 2005, targeting 
high power requirements in commercial 
and defence applications, continued
development of our high efficiency amplifier
for terrestrial broadcast, which is now
supporting over 30 live transmitters in the
USA and travelling wave tubes, for defence
decoy programmes.
Also, in the year we launched a project 
to capitalise on the increasing rate of
investment into major new national scientific
facilities, such as the Fourth Generation Light
Source in the UK (a £150m programme), 
the Energy Recovery Linear Accelerator at
the Cornell High Energy Synchrotron Source,
known as CHESS (a $300m programme) 
in the USA and, more longer term, the
International Linear Collider Programme 
(a $6bn programme).
At 31 March 2005, 69 patent families had
been granted and a further 62 were pending.
In the year, there were over 21 new British
patent applications filed. We take a very
proactive approach to patent management,
seeking to protect our intellectual property,
where appropriate, to maintain or develop
our market position.
CHIEF EXECUTIVE’S REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 10
Chief Executive’s report continued
e2v has been involved in the defence
industry since its inception in 1944 and
during that time e2v has built a strong
reputation within the industry based on
its specialist expertise and technical
innovation. Today e2v is a highly
respected company within the defence
industry at home and overseas.  
One major military project e2v has been
involved with from its inception is the
development of towed decoys for
military aircraft. The decoy is towed
some distance behind an aircraft
(usually a supersonic jet fighter) and 
is the source of a microwave jamming 
or countermeasures signal. 
The signal is generated within the
aircraft, and then passed down the fibre-
optic tow cable into the travelling wave
tube (TWT), which amplifies the power of
the signal by a factor of about 100,000
before directing it to the antennae. 
e2v has positioned itself as a preferred
supplier of TWTs into both European 
and North American programmes based
on the superior performance of its 
TWTs under the particularly difficult
environmental conditions experienced 
by the decoy. As the decoys are typically
expendable volume requirements are, in
general, high. 
MILITARY DECOYS CHIEF EXECUTIVE’S REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 11
OUTLOOK
As we come to the end of the first quarter 
for the current financial year, we continue 
to see strong demand for our high performance
imaging technology, both for space science
programmes and for use in dental x-ray
systems. In the electronic tubes product
group, marine radar components and 
devices for broadcast transmitters are 
also experiencing positive demand.
We have an ongoing programme to focus 
on productivity improvements, which will
underpin further profit growth, particularly
during the second half of the year.
Finally, we continue to actively pursue ‘bolt-
on’ acquisitions to accelerate the growth
profile of the business. Overall, e2v is well
placed to deliver continued growth.
Keith Attwood
Chief Executive Officer
MARINE RADAR KEEPING SHIPPING SAFE
e2v provides marine radar components
which are vital in keeping the world’s
shipping lanes safe. e2v’s marine
components provide the enabling
technology that allows vessels to 
detect and safely avoid other ships. 
e2v has been supplying radar components
into the marine industry for a sustained
period of time. Today e2v remains one of
the few independent manufacturers of
marine components such as magnetrons,
limiters, circulators and performance
monitors. Our commercial advantage is
further enhanced by our reputation for
product innovation, long life and product
reliability. Over the coming years we see
our market share increasing due to the
introduction and availability of a next
generation technology that is designed 
to capitalise on new legislation. The
market is predominantly dominated by 
a small number of key OEMs, of which 
we have established relationships with
the likes of Sperry Marine, Furuno and
Kelvin Hughes etc. 
Similar products are also supplied into
airborne applications for use in weather
radars for small and private aircraft.  INNOVATION
RAISING THE BAR
CONNECTIVITY
INTEGRITY
Our values in action FINANCIAL REVIEW e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 13
Mike Hannant
Finance Director
In a year when the Company was refinanced
by an Initial Public Offering, that allowed the
major investors to realise their investment,
the Group delivered 7% sales growth (at
constant exchange rates) and underlying
profit growth of 7.5% (underlying profit =
profit before exceptional items and
amortisation of intangible costs). This was
achieved in the face of the US$ exchange
rate weakening by 9% to an average of
$1.85 for the year when 42% of the Group’s
sales are denoted in US$.
INITIAL PUBLIC OFFERING
This is the maiden financial report of the
business as a plc following the Initial Public
Offering of 49,301,164 shares at a price of
155 pence per ordinary share on 23 July
2004. The funds raised were utilised in
reducing the Company’s debt level which in
turn provided further borrowing capacity to
fund both an organic and acquisition growth
strategy. The total cost of the IPO was
£4.0m with £1.9m of this being charged 
as an exceptional item in the accounts. 
The remainder has either been charged to
reserves (£1.7m), or is being amortised over
five years as debt issue costs (£0.4m),
within the interest charge.
CURRENCY
The Group’s primary exposure is the US$ 
due to 42% of the Group’s sales being
denominated in this currency but the
majority of the cost base being sterling.
Exposure also exists to the Euro which
represents a further 17% of the Group’s
sales. There is also exposure to translation
where the overseas distribution subsidiaries’
results are consolidated on a sterling basis.
In the year ended 31 March exchange rates
applied were:
Average Year end
2005 2004 2005 2004
US$ 1.85 1.70 1.89 1.84
Euro 1.47 1.45 1.46 1.49
If the 2004 exchange rates had been 
applied to the 2005 results, sales would
have been £4.0m higher (4%). The impact
on operating profits is mitigated by the 
use of forward currency contracts.
OPERATING PERFORMANCE
Sales increased by 3% at reported exchange
rates and 7% at constant exchange rates
largely driven by growth in sales to North
America, from a geographical view, and 
the sensor product range. The acquisition 
of the Microwave Alarm Sensor business in
August 2003 contributed £1.4m to the sales
growth in the year and accounted for a 1.4%
increase overall.
Sensor product range margins increased by
4.1% to 31.7% despite adverse currency
movements, primarily due to improved
utilisation of the CCD Wafer Fab with its 
high proportion of fixed costs. Electronic
tube margins fell 2.1% to 25.7% due to the
impacts of currency and the reduction of the
high margin spares business in Aerospace
and Defence being partly offset by lower
margin business in the Commercial and
Industrial sector. Central overheads, which
include gains/losses on exchange as well 
as general factory overheads, provision
movements, distribution costs and
administrative expenses, increased by
£984,000. This increase is due to an increase
in administrative costs primarily due to the
establishment of the required infrastructure
to operate as a listed plc.
Financial review FINANCIAL REVIEW e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 14
Financial review continued
Overall underlying profits (operating profit
before exceptional items and amortisation 
of intangible assets) increased by £860,000
and the underlying profit margin increased
0.5% to 12.3% of sales.
Exceptional costs of £1.9m relating to the
IPO and £1.2m of amortisation reduced 
the operating profit to £9.2m for the year 
ended 31 March 2005. In the previous year
exceptional costs amounted to £0.6m and
amortisation costs were £1.1m, resulting in
operating profits of £9.9m. The increase in
amortisation costs arose from a full year of
amortisation for the Microwave Alarm
business acquired in August 2003.
INTEREST CHARGES
The IPO process resulted in the repayment
of the existing bank and investor loans. 
New banking facilities were arranged with 
a consortium of Lloyds TSB and Barclays 
at significantly lower rates of interest,
reflecting the market conditions at the time.
These facilities consisted of a term loan of
£25m, working capital facility of £5m and 
an acquisition facility of £30m.
Under the terms of the facility £1.25m of 
the term loan was repaid on 31 March 2005
and a further £3.75m is due for repayment
during the year ended 31 March 2006. The
acquisition facility was not utilised in the
year ended 31 March 2005. This facility is
available to the Group in full until 31 March
2007 when the maximum available reduces
to £27.5m and then progressively reduces
until 30 June 2009. A commitment fee is
payable for this facility and the fee
amounted to £66,000 for the year.
£0.4m of expenses with regard to the IPO
facility have been capitalised and are being
charged as interest over five years.
The interest charge for the year ended 
31 March 2005 can be analysed as follows:
£000 £000
Pre IPO facility
– bank interest 1,098
– other interest 549
– capitalised expenses w/off 2,175
3,822
Post IPO facility
bank interest – term loan 1,032
– working capital 114
facility charge (acquisition facility) 66
capitalised expenses w/off 61
1,273
Total 5,095
TAXATION
The effective tax rate on profits for the year
ended 31 March 2005 before amortisation
and exceptional items amounts to 30.9%
compared with 25.1% in the previous year.
The change in rate is due to a significant
adjustment in the previous year for tax
overprovided in earlier years and the
increase in overseas profits. Whilst the
Group benefits from R&D tax credits in the
UK, this is offset by higher rates of corporate
tax in overseas jurisdictions.
In the year ended 31 March 2005 the tax
charge is further impacted by exceptional
costs relating to the IPO and the total charge
of £2,058,000 (2004: £1,362,000) equates
to 47.8% (2004: 29.3%). 
EARNINGS AND EARNINGS PER SHARE
The profit on ordinary activities after
taxation can be further analysed to 
calculate comparable earnings as follows:
Year ended Year ended
31 March 31 March 
2005 2004
£000 £000
Profit on ordinary 
activities after taxation 2,248 3,281
Add back exceptional costs
Restructuring costs – 124
Environmental costs – 402
Costs associated with 
management buy-out – 60
Initial public offering costs 1,901 –
Accelerated debt amortisation 2,050 –
Taxation impact of 
exceptional costs (782) (176)
Comparable earnings 5,417 3,691
The comparable earnings of £5.4m increased
by 47% over the prior year and equates to
earnings per share of 11.07 pence (2004:
10.33 pence). The weighted average number
of shares in issue during the year increased 
by 37%.
CASH FLOW AND DEBT
The net cash flow from operating activities
before capex of £10.8m was £9.4m less than
that achieved in the year ended 31 March
2004 due to the unwinding of an exceptional
working capital position at 31 March 2004.
In the last quarter of the 2004 fiscal year the
Group had delivered over £3.3m of a £4.5m
contract where payment was received within
14 days of despatch. This contract had 
an unusually high material content and
settlement terms were 60 days. These
contract amounts and terms were exceptional
and no similar contracts were entered into
during the year ended 31 March 2005.
In addition £2.5m of advance payments 
were received in February 2004 for supply
contracts that extend to 2006 and extended
terms were available on capex incurred in
the fourth quarter of 2004. FINANCIAL REVIEW e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 15
At 31 March 2005 trade debtor days and
trade creditor days were at normal and
expected levels and inventory had reduced
by £2.6m but working capital movement
(excluding stock) accounted for a £6.9m
reduction in operating cash. The balance 
of the cash flow shortfall compared to last
year was primarily exceptional IPO costs. 
The Group continues to invest in the SAP IT
system and focus capex on the higher growth
sensors product range. Total capex amounted
to £7.6m in the year, 7.5% of sales.
There was an additional net outflow of 
non-operating cash of £6.4m including
interest on investor loan notes that became
payable on the refinancing of the business 
at IPO. Net cash outflow for the year before
financing was £3.2m.
Net debt at 31 March 2005 amounted to
£21.8m and amounted to 63.2% of equity
shareholders’ funds.
PENSIONS
The Group operates money purchase
schemes in the UK and North America and
contributes to state schemes for European
activities. Such schemes are defined
contribution schemes and there is no 
Group exposure to any scheme liabilities.
IFRS
The interim accounts for the six months
ended 30 September 2005 are the first
accounts the Group will be required to
produce under IFRS. The Group will publish
an IFRS statement prior to the release of the
interim accounts. IFRS will primarily impact
the results due to changes in the accounting
treatment of goodwill, research and
development costs, share-based payments,
financial instruments and deferred taxation.
Mike Hannant
Finance Director AUDITORS
Ernst & Young LLP
Compass House
80 Newmarket Road
Cambridge CB5 8DZ
SOLICITORS
Macfarlanes
10 Norwich Street
London EC4A 1BD
BROKERS
ABN Amro
250 Bishopsgate
London EC2M 4AA
REGISTRARS
Lloyds TSB
The Causeway
Worthing
West Sussex BN99 6DA
GEORGE KENNEDY (CBE)
Chairman
Age 63
George has spent most of his career at 
the Smiths Group, which he joined in 1973,
where he was an Executive Director holding
various positions culminating in the
Chairmanship of the Medical Systems
Division. In addition to his position as
Chairman of the Company, he is also
currently Chairman of Carclo plc, deputy
Chairman of Vernalis plc and holds other
non-executive positions. He has experience
working with government organisations 
and is currently Chairman of the Healthcare
Division of the Iraqi Reconstruction Group.
George has demonstrated a track record 
of leading high-tech businesses working 
in a global marketplace. In 1997, he was
awarded a CBE for services to the healthcare
industry and exports.
KEITH ATTWOOD 
Chief Executive Officer
Age 44
Keith has extensive industrial experience,
gained in telecommunications, avionics 
and, more recently, electronic components.
He has been with the Group for over six
years and, prior to assuming his current 
role, held various senior positions, including
Operations Director (GEC-Marconi Avionics
Ltd), and Project Director (GPT Ltd). He 
has had significant international business
development experience and holds an MBA. 
MIKE HANNANT
Finance Director and Company Secretary
Age 48
Mike is a Chartered Accountant with 20
years commercial experience, primarily in
the electronics sector, thirteen of which
have been with the Group. He qualified as 
a Chartered Accountant in 1982 and held
various senior financial positions with a
subsidiary of the Philips Electronics Group
and Project Office Furniture plc (now called
Workspace Office Solutions Limited), prior 
to his joining the Group in January 1991.
He was Assistant Finance Director prior to
appointment to his current role in 1998.
BOARD OF DIRECTORS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 16
Board of Directors ANTHONY READING 
Senior Independent Non-Executive Director
Age 60
Tony is a Chartered Accountant and was 
a Director of Tomkins plc and Chairman 
of Tomkins Corporation for 11 years, until 
the end of 2003. Prior to joining Tomkins in
1990 he served as Group Managing Director
of Pepe Group plc from 1989 to 1990. In his
earlier career, Tony was a Group Executive
with Thomas Tilling Plc and Group Chief
Executive of the manufacturing and
engineering division of BTR plc. He is a 
Non-Executive Director of Spectris plc, 
Laird Group plc and George Wimpey plc. 
JONATHAN BROOKS
Independent Non-Executive Director
Age 49
Jonathan Brooks has a broad range of
financial, commercial and international
experience. He currently holds a number 
of Directorships with technology-based
companies. He is a Non-Executive Director 
of Xyratex Limited, a Nasdaq-listed provider
of enterprise class data storage subsystems
and network technology, is Chairman of
Picochip Inc., a private equity company
developing wireless processors, and is a
Director of Frontier Silicon Holdings Limited,
a venture-backed company that supplies
semiconductor technology for use in digital
radio and television applications. Between
1995 and 2002, he was Chief Financial
Officer and a Director of ARM Holdings plc,
where he was a key member of the team
that developed ARM Holdings to be a leader
in its sector.
IAN GODDEN 
Independent Non-Executive Director
Age 51
Ian has an MBA from Stanford University
and significant experience in management
and strategic consultancy in the United
States and Europe. He was a founder
member of two consulting start-ups. During 
the 90’s he was UK Managing Partner and
European Board Member of Booz Allen and
Hamilton, and UK Managing Partner of
Roland Berger Strategy Consultants. Ian is
currently a senior adviser to the Parthenon
Group, President and CEO of Glenmore
Energy (USA) and a Non-Executive Director
of Havelock Europa plc, ITMS and
Condordas. He has been a Non-Executive
Director of e2v since 2003.
Lloyds TSB Corporate
Black Horse House
Castle Park
Cambridge CB3 0AR
PRINCIPAL BANKERS
Barclays Bank plc
PO Box 544
54 Lombard Street
London EC3V 9EX
REGISTERED OFFICE
106 Waterhouse Lane
Chelmsford
Essex CM1 2QU
BOARD OF DIRECTORS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 17 PRINCIPAL ACTIVITY
The Group’s principal activity is a leading
developer and manufacturer of electronic
tube and sensor components and subsystems.
It supplies its products to niche sectors
within the Medical and Science, Aerospace
and Defence and the Commercial and
Industrial markets. The Group has
operations in the UK, USA, Germany and
France, as well as an established network 
of agents and distributors covering the
Americas, Europe, Middle East, Africa, 
Far East and Australia.
RESULTS AND DIVIDENDS
The results for the year are shown in the
Group Profit and Loss Account on page 30.
The final dividend, subject to shareholder
approval, will be paid on 13 September
2005 to shareholders registered at close 
of business on 19 August 2005.
RESEARCH AND DEVELOPMENT
The Group continues to commit significant
resources to existing product enhancement
as well as the introduction of new products
for established and emerging markets.
Resource is also committed to research by
way of supporting university programmes
for post graduate, knowledge transfer
partnerships and research collaborations,
such as the centre for electronic imaging 
at Brunel University.
Customers fund directly a substantial
proportion of expenditure on product
enhancement and new product
development but the amount funded 
by the Group amounted to £5,280,000
(2004: £5,417,000).
DIRECTORS
Profiles of all Directors at the date of this
report appear on pages 16 and 17. The
beneficial and non-beneficial interests,
including family interests, in the share capital
of the Company, for Directors in office at the
end of the year are detailed on page 26.
SHARE CAPITAL
During the year the share capital was
reorganised to facilitate the Initial Public
Offering. Full details are given in Note 17 
to the accounts on page 49.
EMPLOYEES
During the year, the policy of providing
employees with information about the Group
has been continued through the Company
newsletter “time2talk” in which employees
are encouraged to contribute news. In
addition regular team briefs are held to
allow the free flow of information and an
employee forum was established on the
Group’s intranet. The Group believes 
it complies with the Information and
Consultation directive of the European 
Union that became effective in the UK 
on 1 April 2005.
As part of the flotation, the employees 
were able to purchase shares in the Group
at the offer price and a share save scheme
was launched for all Group employees in
September 2004. An employee share option
scheme was launched in the year and 240,000
options were granted on 12 January 2005.
The Group gives full consideration to
applications for employment from disabled
persons where a handicapped or disabled
person can adequately fulfil the requirements
of the job.
Where existing employees become disabled,
it is the Group’s policy, wherever practicable,
to provide continuing employment under
normal terms and conditions, and to 
provide training and career development
and promotion to disabled employees,
wherever appropriate.
CREDITOR PAYMENT POLICY
The Group seeks to abide by the payment
terms agreed with suppliers whenever it is
satisfied that the supplier has provided the
goods or services in accordance with the
agreed terms and conditions. The Group 
does not have a standard or code of conduct
which deals specifically with the payment 
of suppliers.
The Group’s average creditor payment period
at 31 March 2005 was 69 days (2004: 64 days).
The Company has no material trade
creditors (2004: £nil).
CHARITABLE AND POLITICAL DONATIONS
Details of charitable donations are given on
page 23 of the Corporate Social Responsibility
section of the annual report. No donations
were made to any political parties.
INTEREST IN VOTING SHARES
At 22 June 2005 the Company had been
notified of the following interests of 3% or
more in the Company’s ordinary shares:
Number
Percentage of ordinary 
of ordinary shares of
share capital 5p each
Framlington Group Limited 9.02% 5,043,446
Aberforth Partners 8.96% 5,009,637
JP Morgan Fleming 
Asset Management 8.84% 4,943,880
UBS Global Asset Management 4.92% 2,748,654
Insight Investment Management 4.81% 2,690,955
Threadneedle 
Asset Management 4.79% 2,679,346
Henderson Global Investors 3.65% 2,040,862
F&C Management Limited 3.65% 2,039,827
M&G Investment Management 3.37% 1,882,500
Legal & General 
Investment Management 3.17% 1,769,967
Universities Superannuation 3.09% 1,725,450
AUDITORS
A resolution to reappoint Ernst & Young LLP
as auditors will be put to the members at
the forthcoming Annual General Meeting.
On behalf of the Board
Mike Hannant
Finance Director
22 June 2005
DIRECTORS’ REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 18
Directors’ report CORPORATE GOVERNANCE REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 19
e2v technologies plc recognises the
importance of, and is committed to, high
standards of Corporate Governance. Prior 
to the Initial Public Offering the Group had
established principles and procedures of
Corporate Governance that were appropriate
to the size and status of the Group. During
and post the IPO process the Board have
extended these principles and procedures
and this statement outlines how they have
been applied to enable compliance with the
Combined Code, since the date of the IPO,
except for provision B2.2 as explained below. 
THE BOARD OF DIRECTORS
At 31 March 2005 the Board consisted of the
Chairman, George Kennedy, two Executive
Directors and three Non-Executive Directors,
including the Senior Independent Director
Anthony Reading, to whom concerns can be
conveyed. The Board was reconstituted as
part of the IPO process and only one of the
Non-Executive Directors at 1 April 2004, Ian
Godden, remains a Board member. George
Kennedy and Anthony Reading joined the
Board on 25 June 2004 and Jonathan Brooks
joined on 18 August 2004. Keith Attwood, CEO,
and Mike Hannant, Finance Director, were
Executive Directors throughout the year and
Mike Hannant is also the Company Secretary. 
The Directors appointed during the year were
selected, with the assistance of independent
consultants, based on their experience as a
plc director and knowledge of the products
and of markets in which the Group operates.
The selection process covered their
knowledge of corporate governance, and
since appointment, the induction programme
covered the business operations.
All Non-Executive Directors are regarded 
as independent by the Board and make a
significant contribution to the functioning 
of the Board and its committees. They have
direct access to the Company Secretary and
are able to obtain independent advice on
any Group issue, at the Group’s expense.
The Articles of Association require that
Directors retire in the third calendar year
following the year in which they were
elected. Any Director appointed by the
Board is required to submit themselves 
for re-election at the next Annual General
Meeting after appointment. The names of
those Directors for re-election at the Annual
General Meeting are set out on page 60.
Biographical details of all Directors are set
out on pages 16 and 17.
ROLE OF THE BOARD MEMBERS
The Non-Executives’ primary responsibilities
are:
• Ensure principles of Corporate
Governance are applied.
• Approve the strategy for the business.
• Ensure the strategy is being implemented.
• Provide independent advice on the
implementation of the strategy and other
day to day matters where their experience
is relevant.
The Executives’ primary responsibilities,
together with members of the senior
management team are:
• Formulate the strategy of the business
and obtain Board approval.
• Implement the approved strategy subject
to agreed levels of authority.
The Board’s responsibilities are discharged
by way of:
• Monthly Board meetings (except for 
the months of August and December due to
vacation).
• Other meetings, as required to approve
matters beyond the authority limits of 
the CEO.
• Attendance at meetings of the Committees
of the Board.
• Attendance at Quarterly Reviews when
members of executive management, who
are not Board members, attend. 
Matters beyond the authority limits of the
CEO range from the approval of customer
quotes over the approved financial limit set
by the Board, activities relating to mergers
and acquisitions, as well as approval of the
annual operating plan.
PRINCIPAL BOARD COMMITTEES
The Board has established the following
committees whose individual terms of
reference were updated and approved 
by the Board on 25 August 2004:
Audit Committee
The committee is chaired by Jonathan
Brooks and has met three times since the
IPO and will meet at least three times a 
year. Other members of the committee are
Anthony Reading and Ian Godden, and the
Chairman exercises his right to attend. The
CEO and Finance Director attend all Audit
Committee meetings and the Audit Partner
attends at least two of the meetings. At
meetings reviewing the interim and full year
results, the Non-Executive Directors exercise
their right for discussions with the Audit
Partner where no Executive Directors,
including the Company Secretary, are
present. The terms of reference of the 
Audit Committee include:
• Review the effectiveness of the financial
reporting and internal control policies 
and procedures for the identification,
assessment and reporting of risks.
• Review the arrangements for what is
commonly known as ‘whistle blowing’.
• Consider the requirements for
establishing an Internal Audit function.
• Make recommendations to the Board 
in relation to the appointment and 
reappointment of the external auditors 
as well as oversee the selection process
of any new audit appointment.
• Review the relationship with external
auditors including assessments of
independence and objectivity as well as
fee levels and terms of engagement.
Corporate Governance report • Review the findings of any audit with the
external auditors.
• Review the consistency of accounting
policies on a year to year basis and across
the Group.
During the year the Board reviewed the 
key risks to the business and a formal Risk
Management Committee, chaired by the
Finance Director, that consists of senior
management, has been formed in line with
the Turnbull guidance to monitor risk. 
As part of the IPO process the auditors 
were also selected to undertake the role of
reporting accountants following assurance
received by the Board of the independence
and objectivity of the audit and corporate
finance activities. The Board were satisfied
that the two activities of the audit firm
retained their objectivity and audit
independence was not compromised. The
only future undertakings by the auditors,
other than audit, that will be considered 
by the Board relate to the certification of
government returns and grant applications,
to ensure that audit objectivity and
independence is safeguarded.
Remuneration Committee
The committee is chaired by Anthony
Reading and has met five times since the
IPO and will meet at least once a year. Other
members of the Committee are Jonathan
Brooks and George Kennedy. The CEO and
senior personnel manager within the Group
attend all meetings. The Finance Director
attends when requested. The terms of
reference of the committee include:
• Agreeing with the Board the framework or
broad policy for the remuneration of the
Executive Directors and other members of
the executive management team, as well
as reviewing the appropriateness and
relevance of the policy.
• Determining targets for any performance
related pay schemes and approving total
annual payments under the schemes.
• Reviewing all share incentive plans, the
related performance targets and all
awards made under the schemes.
• Determining the individual remuneration
packages of each executive manager
within the agreed policy as well as 
contractual arrangements, including
pension provisions.
• Determining the procedure for vetting,
authorising and reimbursement of claims
for expenses for all Directors.
• Establishing selection criteria, terms of
reference and selection and employment
of remuneration consultants.
Full details of Directors’ remuneration and
policies applied by the Board are set out in
the Remuneration Report.
The remuneration of the Chairman is 
set by a separate committee comprised 
of the Executive Directors, and not the
Remuneration Committee in contravention 
of provision B2.2 of the code.
Nomination Committee
The committee is chaired by George Kennedy.
The other members of the committee are the
CEO, Keith Attwood and Anthony Reading. The
Committee has met twice since it was formed
and will meet at least once per year. The
terms of reference of the committee include:
• Regular review of the structure, size and
composition of the Board.
• The formal selection and nominations 
for Board approval of any new Board
appointments.
• Provision of recommendations to the Board
regarding succession, 
reappointment and membership of the
audit and remuneration committees.
The process followed for the appointment 
of Directors in the year is detailed earlier 
in this report.
COMMUNICATION WITH SHAREHOLDERS
The Chairman is available to Institutional
Investors but the principal contact points are
the CEO and Finance Director. Presentations
are given to individual institutions, on a
group basis if preferred, following the
announcement of interim and full year
results. Site tours and ad-hoc meetings 
are also arranged where requested. 
The senior independent director, Anthony
Reading, is also available for any shareholders
to address concerns they may have.
The Chairman arranges for the Directors to
receive reports on shareholders’ views to
ensure the Board develops an understanding
of the matters of concern to the major
shareholders. The Chairman and senior
independent director contact major
institutional shareholders as part of the
results presentations given by the CEO 
and Finance Director.
The principal information sources for private
investors have, to date, been the Listing
Particulars issued as part of the IPO, the
Company’s web site or direct contact with
the Finance Director. In future, the Annual
General Meeting will be the principal point
of contact, and the first AGM of the plc is on
8 September 2005. The first interim results
were distributed to all shareholders on 
17 December 2004.
CONTROL ENVIRONMENT AND 
INTERNAL CONTROLS
The Board has adopted processes for
identifying, evaluating and managing 
the significant risks faced by the Group.
These processes include the review by the
Board of the key risks to the business to
allow it to report on internal controls in this
annual report. 
CORPORATE GOVERNANCE REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 20
Corporate Governance report continued The Board has overall responsibility for the
Group’s system of internal control and for
reviewing its effectiveness whilst the role 
of the management is to implement Board
policies on risk and control. The system of
internal controls is designed to manage
rather than eliminate the risk of failure of
the achievement of business objectives. In
pursuing these objectives, internal controls
can only provide reasonable and not
absolute management against material
misstatement or loss.
This process, which is in accordance with
the Turnbull guidance, has been in place
since the flotation and up to the date the
accounts were approved.
The key procedures that the Directors 
have established with a view to providing
effective financial control are as follows:
• The Board has overall responsibility for
the Group and there is a formal schedule
of matters specifically reserved for its
decision, thus ensuring that it maintains
control over appropriate strategic,
financial, operational, risk management
and compliance issues. Throughout the
Group there are clear lines of authority
covering the full range of financial
commitments. A schedule of delegated
authority for the Board to the CEO is
agreed annually and items requiring
Board approval are either agreed 
at monthly Board meetings, or at
intervening meetings specifically
arranged for the purpose.
• Each year the Board approves the annual
operating plan, the components of which
form the financial objectives for the
executives. Key risk areas are identified.
Performance against these objectives is
monitored and relevant action taken
throughout the year through the regular
reporting to the Board of variances from
the budget, updated forecasts for the year
and information on the key risk areas.
• At the monthly Board reviews the Non-
Executives review the reports presented
to them by the CEO and Finance Director,
which include a review of the financial
results. This review compares current year
to previous year and the annual operating
plan as well as a current year forecast and
order book levels. 
At the current time the Audit Committee 
and Board are of the opinion that a formal
internal audit function is not considered
necessary due to the structure and size 
of the Group, widespread executive
involvement in the day to day business and
the levels of variance analysis undertaken
by the executive management and reported
to the Board.
A formal ‘whistle blowing’ policy was
approved by the Audit Committee, is
included in the Group’s employee handbook
and has been in place since the date of 
the IPO. 
ATTENDANCE AT BOARD AND COMMITTEE
MEETINGS 
In preparation for the IPO there were
numerous Board meetings held to, amongst
other things, approve the documentation
and submissions to the UK Listing Authority.
Since the IPO there has been full attendance
at all meetings except for one of the Audit
Committee meetings which Ian Godden 
was unable to attend and two of the
Remuneration Committee meetings at which
George Kennedy was unable to attend. 
PERFORMANCE EVALUATION OF THE BOARD
The Chairman and Company Secretary
undertook a performance evaluation of the
Board which required an assessment, by
each individual Director, of the performance
of the Board, its committees and individual
members. The results of this assessment
were reviewed by the Nomination Committee
and there were no areas of concern. In
addition, the Chairman and Non-Executive
Directors meet independently of the
Executives to review the Executives’
performance and the full Board excluding
the Chairman, meet to evaluate the
Chairman’s performance.
GOING CONCERN
The Group’s forward order cover and
ongoing demand for its products, together
with the geographic and market spreads 
of the Group are such that the Board have 
a reasonable expectation that the Group 
has adequate financial resources for the
foreseeable future and, based on this view,
the going concern basis has been adopted 
in preparing the financial statements.
CORPORATE GOVERNANCE REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 21 For many years e2v technologies has had
initiatives to seek continued improvement
on the subjects that form the basis of good
management and corporate governance.
Since flotation on the London Stock
Exchange in July 2004 steps have been
taken to review our policies and pull them
together under the umbrella of Corporate
Social Responsibility (CSR). We believe 
that we can build on and improve our CSR
strategy over the coming years, but we are
confident that our existing CSR policies are
robust and provide a sound foundation for
the future.
Outlined below is a summary position with
regard to the key areas of our policy:
HEALTH AND SAFETY
We aim to continually improve Health and
Safety performance and to reduce the risk of
injury to all persons on site, which include
employees, contractors and visitors. The
compliance with national laws and with
codes of practice will be regarded as 
the minimum standard. The day to day
responsibility for Health and Safety is
delegated through all departments. A Health
and Safety policy is in place and is reviewed
on a regular basis. A statement of intent is
signed by the CEO and is posted at various
locations on all sites. All employees are able
to access the policy via the intranet and the
staff handbook. There is a Works Safety
Committee at both of our manufacturing
locations, which undertakes quarterly
reviews of potential risks and issues. The
Committee is made up from departmental
safety representatives and representatives
of management. The Group also takes
responsibility for on-going safety training
where required.
In brief the Group’s Health and Safety policy
requires that:
• Responsibility for Health and Safety
performance is clearly assigned and
understood.
• Health and Safety measures are effectively
communicated to all employees, adequate
training is provided and monitoring
processes are put in place to maximise 
the Health and Safety at work of all its
employees, contractors and visitors.
• Appropriate safety equipment and
protective clothing (PPE) are available 
at all times.
• All employees are encouraged to
contribute in the development of Health
and Safety procedures as well as being
involved in the risk assessment process.
• Health and Safety performance is
regularly monitored to ensure continued
effectiveness of the Group’s policy.
• Regular safety audits and inspections 
are carried out on all sites with any non-
conformances being reported at the
Health and Safety Committee meeting.
ENVIRONMENT MANAGEMENT
The Group continues to focus on its impact
on the environment. The Group’s main aims
are the reduction of energy use, improved
waste management and compliance with
legislation. The Group’s overall commitment
is backed up by its well-established
Environmental Management System (EMS),
which has been certified, to ISO14001 since
1997. Through the Group’s association with
Envirowise and their Design Track scheme,
we have adopted a “Design for the
Environment” philosophy and this has, and
will, continue to affect all new product
designed by the Group.
A number of factors have contributed to the
year on year environmental performance.
These are:
• A robust Environmental Management
System.
• A committed well educated workforce.
• Investment in environmental
improvements.
• Full commitment to environmental
compliance.
Energy
The UK manufacturing activities are certified
to the Energy Efficiency Accreditation
Scheme. The Group is continually reducing
its energy usage in line with Climate Change
Levy (CCL) targets and has been working
closely with the Carbon Trust to identify
opportunities for further improvement in 
our energy consumption during 2005. The
visibility of the energy consumption within
the sites is being improved to ensure all
local areas of the business are aware of and
understand the contribution that they can
make to savings.
Compliance with latest 
environmental legislation
The Group strives to be compliant with 
all current environmental legislation. 
During 2005 we will focus on the Group’s
compliance to the up and coming legislation
on: Hazardous Waste Regulations (HWR),
Solvents Emissions Directive (SED), 
Waste Electrical and Electronic Equipment
(WEEE) and Restriction of Hazardous
Substances (RoHS).
CORPORATE SOCIAL RESPONSIBILITY e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 22
Corporate Social Responsibility Waste management
Over the past 12 months, the UK
manufacturing activities have achieved a
further 10% reduction in both controlled
factory waste to landfill and hazardous
waste from production processes. It has
treated over 19 million gallons of waste
process streams in its onsite treatment
plant, cleaning water to the necessary level
of purity prior to being discharged into the
public utility system. 
The recovery of waste from all streams for
reuse has been key in the Group’s EMS
objectives, and over the past few years the
Group has invested heavily in a state of the
art treatment plant and more recently, a 
new waste management centre. Cardboard,
glass, office paper, plastics and various
process fluids such as oils, organic solvents
and scrap metal are segregated and
recovered on site. All of these materials 
go back into recycling streams and are
reused. A number actually generate 
revenue for the Group.
COMMUNITY RELATIONS
The Group recognises it has a wider role to
play in the community and to support its
staff in their individual and collective efforts
to make the community a better place to
live. In the year the UK Organisation made
£17,000 available to the Charities Committee
of the business to donate to worthwhile
causes in the local community. To maximise
the impact in the community the majority of
the available funds were focused on four
core charities chosen by the employees. 
As part of our overall role in the community,
we place a very important emphasis on our
relationships with schools and centres of
learning. We are currently engaged with over
30 schools and colleges providing ongoing
learning support and generally promoting
science, technology and manufacturing.
To ensure we have the correct level of 
skills coming into our business we have an
ongoing apprentice training programme, 
and at any one time we have approximately 
30 apprentices on the three-year programme.
We also have a yearly graduate intake and
training programme and in the past year 
10 graduates joined the Company.
EMPLOYMENT
The Group recognises that its
competitiveness in the market is very
dependent on employing the right people
and skills in its business. To do this it 
strives to create the right stimulating and
challenging environment for all employees
to thrive and excel. Key elements of our
employment policy are:
• Create a working environment where all
employees are able to improve their skills
and knowledge.
• Maintain a stimulating, healthy and safe
working environment.
• Give employees the necessary support 
to make informed decisions about their
lifestyle and financial security.
• Create an open working environment
where employees feel comfortable in
expressing their views and highlighting
wrong-doing.
• Promote an environment of equal
opportunities that does not tolerate
discrimination, harassment or
victimisation of any type.
• Offer competitive and fair remuneration
packages which are tailored to deliver
both the short and long-term objectives 
of the business.
• Give regular open and honest feedback to
all employees regarding their performance,
career options and training needs via a
yearly Personal Progression Plan (PPP).
• Encourage all employees to embrace the
four key values of the business of:
– Integrity
– Innovation
– Connectivity
– Raising the bar.
CORPORATE SOCIAL RESPONSIBILITY e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 23 INFORMATION NOT SUBJECT TO AUDIT
Remuneration Committee 
The Remuneration Committee is responsible
for recommending to the Board the
framework or broad policy for the
remuneration of the Chief Executive, the
Executive Directors, the Company Secretary
and such other members of the executive
management as it is requested to consider.
The remuneration of the Chairman and other
Non-Executive Directors is a matter reserved
for the Executive Directors.
The members of the Committee are
appointed by the Board and membership 
is confined to Non-Executive Directors.
Anthony Reading currently chairs the
Committee, which meets at least once a
year, and since the IPO its other members
have been George Kennedy and Jonathan
Brooks. All members of the Committee are
independent directors. The Chief Executive
is given notice of all meetings and has the
right to attend them, and is consulted on 
the remuneration of other executives. 
The Committee has no formally appointed
advisers on remuneration policy, however
during the year it has sought advice from
New Bridge Street Consultants LLP, a
leading firm of remuneration consultants,
over the design and implementation of new
Long-Term Incentive Plan (LTIP) and share
option schemes as well as executive
management and Directors’ remuneration. 
Remuneration policy 
The overall policy is to ensure that
executives are fairly and competitively
remunerated and incentivised in a manner
consistent with the Company’s strategic
objectives. The current remuneration
packages combine fixed basic salary,
benefits and pension contributions together
with a performance related annual bonus
and LTIP and share option awards. The
Committee believes that the overall packages
offered to Executive Directors should provide
the right balance of fixed and performance
related pay and be appropriate for the size
and scale of the organisation as well as
competitive, relative to other companies
within its sector. 
Currently, the Committee believes that 
the remuneration of the Executive Directors
is below the average for its industry, taking
into account the size and complexity of 
the business.
The individual components of the
remuneration packages offered are: 
Basic salary and/or fees
Basic salary for each Executive Director is
determined taking account of the individual’s
performance and responsibilities and
comparable market rates. Basic salary is
reviewed annually and is the only element 
of remuneration that is pensionable. 
Fees for the Chairman and Non-Executive
Directors are determined taking into account
individuals’ responsibilities, time required
to devote to the role and comparable 
market rates. 
Benefits 
Benefits comprise the provision of a
company car or car allowance and health
insurance. Non-Executive Directors do not
receive any benefits. 
Annual bonus
An annual bonus is payable to Executives
subject to the attainment of specific targets
which are based on Group performance. 
Non-Executive Directors are not entitled to 
a bonus. Bonuses do not form part of the
individual’s statutory employment rights.
The Committee reserves the right to amend
the targets during the year if it feels that
changes, in such factors as the marketplace
or the Group’s strategy, have resulted in 
the existing targets no longer providing the
appropriate incentive to the individual. The
targets are based on underlying operating
profit for the year, and bonuses could be
earned for performance of over 100% of
targets. For the year ended 31 March 2005
a maximum entitlement of 25% of basic
salary for achievement of 116% of targets
was payable. For the year ended March 2006
these arrangements have been amended 
so that maximum entitlement payable is
50% of basic salary for achievement of
126% of targets.
Pensions 
The Company operates a defined
contribution, Inland Revenue approved
pension scheme. The Company makes
contributions of 12% of basic salary to the
relevant pension scheme and Directors are
entitled to enhance this through additional
voluntary contributions, subject to Inland
Revenue limits. Non-Executive Directors’
fees are non-pensionable. 
Share incentives 
The Group’s policy is to align the interests of
Executive Directors with those of shareholders.
To achieve this the Remuneration Committee
have established the following schemes
which were all approved prior to the IPO:
• Long-Term Incentive Plan (LTIP).
• Share Option Plan.
• Share Incentive Plan.
• Share Save Scheme.
Long-term incentive plan
Such awards will vest on the third
anniversary of the date of award to the
extent that the performance targets have
been met. For awards made in 2004/05,
the targets will relate to the Company’s
Total Shareholder Return (TSR) relative to
the TSR of a specified list of peer group
companies. 25% of an award will vest for
median performance and an award will 
only vest in full if the Company’s TSR
performance would place it in the top 
20% compared to the peer group. 
DIRECTORS’ REMUNERATION REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 24
Directors’ Remuneration report On 3 September 2004 the Remuneration
Committee made the following awards to
Executive Directors.
No. of shares
K D Attwood 91,000 shares
M F Hannant 71,000 shares
Awards where also made to executive
management of the Group.
Share options 
No awards have been made to Executive
Directors or managers under this plan in 
the year as at 31 March 2005. Awards were
made to a range of employees on 14 January
2005. A total of 240,000 options were
issued at a price of 196.5 pence per share.
The awards were made in three tiers subject
to the performance criteria below.
For a period of three years, commencing 
1 April 2004, the increase in earnings per
share (EPS) must be more than the increase
in the Retail Price Index (RPI) as follows:
Tier 1 Tier 2 Tier 3
EPS exceeds RPI by 15% 20% 40% 100%
EPS exceeds RPI by 20% 50% 100%
EPS exceeds RPI by 25% 100%
The EPS is normalised EPS and excludes
extraordinary items, goodwill amortisation,
restructuring costs and other exceptional
costs. The percentages in the table above
are the percentages of the option that will
vest should performance criteria be achieved.
The options are exercisable between 
1 February 2008 and 31 December 2008.
Share Incentive Plan (SIP)
The Group has established a SIP which 
has been designed to qualify for approval 
by the Inland Revenue. The plan contains
three elements:
• Free shares, which are ordinary shares
which may be allocated to an employee
by the Company.
• Partnership shares, which are ordinary
shares which an employee may purchase
out of their pre-tax earnings. 
• Matching shares, which are ordinary
shares which may be allocated to an
employee following the purchase of
partnership shares. 
No awards have been made to Executive
Directors or managers under this plan as at
31 March 2005.
Share Save Scheme
The Group operates an Inland Revenue
approved Sharesave Scheme for all UK
employees and Executive Directors and
managers can apply to join the scheme 
if they are UK employees. The CEO and
Finance Director participate in the scheme 
to the fullest extent permissible.
Service contracts 
In line with best practice it is the policy of
the Committee to offer Executive Directors
service agreements with notice periods not
exceeding 12 months. Current appointments
are subject to rolling service agreements
that can be terminated by 12 months’ notice
as detailed below. Termination payments,
based on basic salary and benefits only, 
are limited to contractual notice periods. 
G Kennedy, A Reading and J Brooks do not
have service contracts but have letters of
appointment with the Group. No notice is 
required to terminate the appointment and
all contracts are for a period of 12 months
from the contract date. The services of Ian
Godden are provided under a Consultancy
Agreement with Godden Associates Ltd
under the same terms as the letters of
appointment for the Chairman and Non-
Executive Directors. A summary of the
Directors’ service contracts and letters of
appointment is listed below: 
Contract date Notice period 
K D Attwood 21st July 2004 12 months
M F Hannant 21st July 2004 12 months
G Kennedy 25th June 2004 Nil
A Reading 25th June 2004 Nil
J Brooks 18th August 2004 Nil
Consultancy Agreement Date
I Godden 23 January 2005 Nil
Shareholding guidelines
Shareholding guidelines have been
introduced in 2005 for Executive Directors,
under which they will be expected to retain
shares equal in value to at least twice their
respective basic salaries.
Employee Benefit Trust (EBT)
The Company established the EBT in 2004
as a discretionary employee benefit trust, 
in which all employees of the Group are
potentially beneficiaries. The Trustee is
Abacus Corporate Trustee Limited, a
professional offshore trustee. The main
purpose of the EBT is to operate with the
LTIP and share option schemes following
recommendations from the Remuneration
Committee or Board. Shareholder approval
has been given to allow the Trustee to hold
no more than 5% of the issued ordinary
share capital of the Company, and as at 
31 March 2005 the percentage was 1.7%.
DIRECTORS’ REMUNERATION REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 25 Directors’ interests 
The beneficial interests of the Directors in
the ordinary share capital of the Company
are set out in the table below: 
At 31 March 2005 At 31 March 2004
Ordinary B ordinary Ordinary
5p shares shares shares
K D Attwood 2,065,128 34,091 115,909
M F Hannant 958,813 13,636 40,909
G Kennedy 32,256 – –
A Reading 19,352 – –
I Godden 64,515 – –
J Brooks – – –
M Hassall – 68,182 13,637
I Slaughter – 68,182 13,637
J Davison – – –
There were no changes to the above interests between the
year end and the date of this report.
Performance graph
The graph below shows the percentage
change in the total shareholder return (with
dividends reinvested) for the period since
flotation to 31 March 2005 of a holding of the
Group’s shares against the corresponding
change in a hypothetical holding of shares in
the FTSE electronics and electronic equipment
sector. This sector was chosen as it represents
the equity market index in which the
Company is a constituent member.
DIRECTORS’ REMUNERATION REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 26
Directors’ Remuneration report continued
AUDITED INFORMATION 
Directors’ remuneration
The remuneration of Directors who served during the year was as follows:
Pension contributions
Salary Car allowance/
and/or benefits 2005 2004 2005 2004
fees Bonus in kind Total Total Total Total
££ ££ ££ £
K D Attwood 187,000 32,220 10,763 229,983 189,563 26,710 9,490
M F Hannant 111,200 21,480 8,963 141,643 110,683 15,001 5,434
G Kennedy 65,610 – – 65,610 – – –
A Reading 22,962 – – 22,962 – – –
I Godden 30,000 – – 30,000 25,000 – –
J Brooks 17,500 – – 17,500 – – –
M Hassall 43,333 – – 43,333 40,000 – –
I Slaughter 38,333 – – 38,333 25,000 – –
J Davison – – – – – – –
Total 515,938 53,700 19,726 589,364 390,246 41,711 14,924
The nature of the benefits has been described on page 24. M Hassall, I Slaughter and J Davison resigned from the Board
prior to the IPO. J Davison was the representative on the Board of a major investor (3i plc) and did not receive any direct
remuneration for his services.
Directors’ share options 
Date Options held Granted Exercise Options held Date 
granted 1.4.04 in year price (p) Exercised 31.3.05 exercisable
KD Attwood
LTIPs 3.9.04 – 91,000 Nil Nil 91,000 3.10.07
M F Hannant
Pre IPO Plan 25.6.04 – 51,129 Nil Nil 51,129 30.6.04
LTIPs 3.9.04 – 71,000 Nil Nil 71,000 3.10.07
£160
£150
£140
£130
£120
£110
£100
£90
£80
£70
£60
23 July 2004 31 March 2005
e2v group
FTSE electro and electrical equipment
The pre IPO plan options lapse on 16 July
2014. The LTIPs do not have a date by which
the options lapse, if not exercised. The
market value of the LTIPs on the date of
grant was £1.74 per share. The pre IPO plan
options had no open market value at the
date of grant. The performance criteria for
the LTIPs are detailed above. The pre IPO
plan options have no performance criteria.
The market price of the ordinary shares at
31 March 2005 was £2.26 and the range
during the period from flotation to the end
of the financial year was £1.55 to £2.55.
Approval 
This report was approved by the 
Remuneration Committee and has been 
approved subsequently by the Board 
of Directors. 
By Order of the Board
Anthony Reading
Chairman of the Remuneration Committee
22 June 2005 STATEMENT OF DIRECTORS’
RESPONSIBILITIES IN RESPECT 
OF THE FINANCIAL STATEMENTS
Company law requires the Directors to
prepare financial statements for each
financial year which give a true and fair 
view of the state of affairs of the Company
and of the Group and of the profit or loss 
of the Group for that period. In preparing
those financial statements, the Directors 
are required to:
• select suitable accounting policies and
then apply them consistently;
• make judgements and estimates that are
reasonable and prudent; 
• state whether applicable accounting
standards have been followed; and
• prepare the financial statements on 
the going concern basis unless it is
inappropriate to presume that the 
Group will continue in business.
The Directors are responsible for keeping
proper accounting records which disclose
with reasonable accuracy at any time the
financial position of the Group and to enable
them to ensure that the financial statements
comply with the Companies Act 1985. They
are also responsible for safeguarding the
assets of the Group and hence for taking
reasonable steps for the prevention and
detection of fraud and other irregularities.
DIRECTORS’ RESPONSIBILITIES e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 27
Directors’ responsibilities We have audited the Group’s financial
statements for the year ended 31 March
2005 which comprise the Group Profit and
Loss Account, Group Statement of Total
Recognised Gains and Losses, Group
Balance Sheet, Company Balance Sheet,
Group Statement of Cash Flows, Statement
of Accounting Policies and the related notes
1 to 25. These financial statements have
been prepared on the basis of the accounting
policies set out therein. We have also
audited the information in the Directors’
Remuneration Report that is described as
having been audited.
This report is made solely to the Company’s
members, as a body, in accordance with
Section 235 of the Companies Act 1985.
Our audit work has been undertaken so that
we might state to the Company’s members
those matters we are required to state to
them in an auditors’ 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 and the Company’s members as 
a body, for our audit work, for this report, 
or for the opinions we have formed. 
RESPECTIVE RESPONSIBILITIES 
OF DIRECTORS AND AUDITORS
The Directors are responsible for preparing
the Annual Report, including the financial
statements which are required to be
prepared in accordance with applicable
United Kingdom law and accounting
standards as set out in the Statement of
Directors’ Responsibilities in relation to the
financial statements. The Directors are also
responsible for preparing the Directors’
Remuneration Report.
Our responsibility is to audit the financial
statements and the part of the Directors’
Remuneration Report to be audited in
accordance with relevant legal and
regulatory requirements, United Kingdom
Auditing Standards, and the Listing Rules 
of the Financial Services Authority.
We report to you our opinion as to whether
the financial statements give a true and fair
view and whether the financial statements
and the part of the Directors’ Remuneration
Report to be audited have been properly
prepared in accordance with the Companies
Act 1985. We also report to you if, in our
opinion, the Directors’ Report is not consistent
with the financial statements, if the
Company has not kept proper accounting
records, if we have not received all the
information and explanations we require for
our audit, or if information specified by law
or the Listing Rules regarding Directors’
remuneration and transactions with the
Group is not disclosed.
We review whether the Corporate
Governance Statement reflects the
Company’s compliance with the nine
provisions of the 2003 FRC Combined Code
specified for our review by the Listing Rules
of the Financial Services Authority, and we
report if it does not. We are not required to
consider whether the Board’s statements on
internal control cover all risks and controls,
or form an opinion on the effectiveness of
the Group’s corporate governance procedures
or its risk and control procedures.
We read other information contained in the
Annual Report and consider whether it is
consistent with the audited financial
statements. This other information comprises
the Chairman’s Statement, Chief Executive’s
Report, Financial Review, Directors’ Report,
Corporate Governance Report, Corporate
Social Responsibility and the unaudited part
of the Directors’ Remuneration Report. We
consider the implications for our report if we
become aware of any apparent misstatements
or material inconsistencies with the financial
statements. Our responsibilities do not
extend to any other information.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with
United Kingdom Auditing Standards issued
by the Auditing Practices Board. An audit 
includes examination, on a test basis, of
evidence relevant to the amounts and
disclosures in the financial statements 
and the part of the Directors’ Remuneration
Report to be audited. It also includes an
assessment of the significant estimates 
and judgements made by the Directors in 
the preparation of the financial statements,
and of whether the accounting policies are
appropriate to the Group’s circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as
to obtain all the information and explanations
which we considered necessary in order to
provide us with sufficient evidence to give
reasonable assurance that the financial
statements and the part of the Directors’
Remuneration Report to be audited are free
from material misstatement, whether caused
by fraud or other irregularity or error. In
forming our opinion we also evaluated the
overall adequacy of the presentation of
information in the financial statements and
the part of the Directors’ Remuneration
Report to be audited.
OPINION
In our opinion:
• the financial statements give a true 
and fair view of the state of affairs 
of the Company and of the Group as at 
31 March 2005 and of the profit of the
Group for the year then ended; and 
• the financial statements and the part of
the Directors’ Remuneration Report to be
audited have been properly prepared in
accordance with the Companies Act 1985.
Ernst & Young LLP
Registered Auditor
Cambridge 
22 June 2005
INDEPENDENT AUDITORS’ REPORT e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 28
Independent auditors’ report to the members of e2v technologies plc Accounts
30 Group profit and loss account
31 Group balance sheet
32 Company balance sheet
33 Group statement of cash fl0ws
35 Statement of accounting policies
38 Notes to the financial statements
59 Financial record
60 Notice of Annual General Meeting ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 30
Year ended Year ended
31 March 2005 31 March 2004
Note £000 £000
Turnover 1 100,547 97,566
Cost of sales (65,892) (63,886)
Gross profit 34,655 33,680
Research and development (5,280) (5,417)
Distribution costs (9,357) (9,664)
Amortisation of intangible assets (1,237) (1,084)
Restructuring costs 4 – (124)
Environmental costs 4 – (402)
Costs associated with the management buy-out 4 – (60)
Initial Public Offering costs 4 (1,901) –
Other administrative expenses (7,633) (7,074)
Administrative expenses (10,771) (8,744)
Operating profit 2 9,247 9,855
Net interest payable 5 (4,941) (5,212)
Profit on ordinary activities before taxation 4,306 4,643
Tax on profit on ordinary activities 6 (2,058) (1,362)
Profit for the financial year 2,248 3,281
Dividends 7 (2,490) –
Retained (loss)/profit for the financial year 18 (242) 3,281
Earnings per share – basic 8 4.59p 9.19p
Earnings per share – diluted 8 4.58p 9.19p
Earnings per share – adjusted 8 11.07p 10.33p
Dividend per ordinary share 7 4.53p 0.0p
Group statement of total recognised gains and losses
For the year to 31 March 2005
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Profit for the financial year attributable to members of the parent company 2,248 3,281
Exchange difference on retranslation of net assets of subsidiary undertakings (44) (265)
Exchange difference on retranslation of inter-company loans (100) (519)
Total recognised gains and losses relating to the year 2,104 2,497
Group profit and loss account
For the year to 31 March 2005 Year ended Year ended
31 March 2005 31 March 2004
Note £000 £000
FIXED ASSETS
Intangible assets 9 10,273 11,509
Tangible assets 10 23,879 21,920
34,152 33,429
CURRENT ASSETS
Stock 12 19,053 21,657
Debtors 13 26,493 25,313
Cash at bank and in hand 4,069 4,475
49,615 51,445
Creditors: amounts falling due within one year 14 (25,435) (25,552)
Net current assets 24,180 25,893
Total assets less current liabilities 58,332 59,322
Creditors: amounts due after more than one year 15 (19,693) (47,195)
Provisions for liabilities and charges 16 (4,201) (5,063)
34,438 7,064 
CAPITAL AND RESERVES
Called up share capital 17 2,796 278
Share premium account 18 27,301 2,376
Capital redemption reserve 18 274 –
Investment in own shares held by Employee Benefit Trust 18 (10) –
Profit and loss account 18 4,077 4,410
Equity shareholders’ funds 19 34,438 7,064
Approved by the Board of Directors on 22 June 2005
K Attwood
Chief Executive Officer
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 31
Group balance sheet
At 31 March 2005
M Hannant
Finance Director Year ended Year ended
31 March 2005 31 March 2004
Note £000 £000
FIXED ASSETS
Investments 11 51,935 51,935
CURRENT ASSETS
Debtors 13 14,876 20,094
Cash at bank and in hand 78 –
14,954 20,094
Creditors: amounts falling due within one year 14 (8,552) (13,533)
Net current assets 6,402 6,561
Total assets less current liabilities 58,337 58,496
Creditors: amounts due after more than one year 15 (19,693) (47,195)
38,644 11,301
CAPITAL AND RESERVES
Called up share capital 17 2,796 278
Share premium account 18 27,301 2,376
Capital redemption reserve 18 274 –
Investment in own shares held by Employee Benefit Trust 18 (10) –
Profit and loss account 18 8,283 8,647
Equity shareholders’ funds 38,644 11,301
Approved by the Board of Directors on 22 June 2005
K Attwood
Chief Executive Officer
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 32
Company balance sheet
At 31 March 2005
M Hannant
Finance Director Year ended Year ended
31 March 2005 31 March 2004
Note £000 £000
Net cash inflow from operating activities 25(a) 10,788 20,212
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received 154 298
Interest paid (4,271) (2,928)
Capitalised loan issue costs (460) –
(4,577) (2,630)
TAXATION
Corporate tax paid (1,006) (672)
Overseas tax paid (554) (316)
(1,560) (988)
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Payments to acquire tangible fixed assets (7,567) (8,290)
Receipts from sales of tangible fixed assets 22 13
(7,545) (8,277)
ACQUISITIONS AND DISPOSALS
Purchase of business – (2,016)
EQUITY DIVIDENDS PAID (347) –
Net cash (outflow)/inflow before management of liquid resources and financing (3,241) 6,301
FINANCING
Issue of ordinary share capital 27,707 14
Redemption of shares (12) –
New long-term loans 25(b) 27,500 –
Long-term loan repayment 25(b) (52,207) (7,906)
2,988 (7,892)
(Decrease) in cash 25(b) (253) (1,591)
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 33
Group statement of cash flows
For the year ended 31 March 2005 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Year ended Year ended
31 March 2005 31 March 2004
Note £000 £000
Decrease in cash (253) (1,591)
Cash flow from decrease in loans 24,707 7,906
Issue costs on new long-term loans 460 –
Decrease in net debt resulting from cash flows 24,914 6,315
Issue of payment in kind notes – (1,743)
Amortisation of debt issue costs (2,236) (378) 
Exchange differences (153) (732)
Movement in net debt 22,525 3,462
Opening net debt at 1 April (44,307) (47,769)
Closing net debt at 31 March 25(b) (21,782) (44,307)
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 34
Group statement of cash flows
For the year ended 31 March 2005 Accounting convention
The financial statements are prepared under the historical cost convention and in accordance with applicable accounting standards. 
Basis of consolidation
The Group financial statements consolidate the financial statements of e2v technologies plc and its subsidiary undertakings drawn up to
31 March. No profit and loss account is presented for e2v technologies plc as permitted by section 230 of the Companies Act 1985.
Fixed assets
Fixed assets are initially recorded at cost. Freehold land is not depreciated and is held at historical cost. Depreciation is provided on all other
tangible fixed assets at rates calculated to write off the original cost, less estimated residual value, of each asset evenly over its expected
useful life, as follows:
Freehold buildings – 25 to 50 years
Plant and machinery – 3 to 10 years
Office equipment, fixtures and fittings – 3 to 10 years
The carrying values of tangible fixed assets are reviewed for impairment in periods if events or changes in circumstances indicate the carrying
value may not be recoverable.
Goodwill
Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life
up to a maximum of 20 years. It will be reviewed for impairment at the end of the first full financial year following the acquisition and in other
periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
If a subsidiary or business is subsequently sold or closed, any goodwill arising on acquisition that has not been amortised through the profit
and loss account is taken into account in determining the profit or loss on sale or closure.
Intangible assets
Intangible assets acquired separately from a business are capitalised at cost. Intangible assets acquired as part of an acquisition of a business
are capitalised separately from goodwill if the fair value can be measured reliably on initial recognition, subject to the constraint that, unless
the asset has a readily ascertainable market value, the fair value is limited to an amount that does not create or increase any negative goodwill
arising on the acquisition. Intangible assets created within the business are not capitalised and expenditure is charged against profits in the
year in which it is incurred.
Intangible assets are amortised on a straight line basis over their estimated useful lives up to a maximum of 20 years. The carrying value of
intangible assets is reviewed for impairment at the end of the first full year following acquisition and in other periods if events or changes in
circumstances indicate the carrying value may not be recoverable.
Leasing commitments
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.
Stock
Stock is stated at the lower of cost and net realisable value. Provision is made for obsolete, slow moving or defective items where appropriate.
Cost includes all costs incurred in bringing each product to its present location and condition, as follows:
• raw materials, consumables and goods for resale – purchase cost on an average basis.
• work in progress and finished goods – cost of direct materials and labour plus attributable overheads based on a normal level of activity.
Maintenance and warranty costs
Provisions for the expected costs of maintenance and warranty claims are charged against profits when products have been invoiced. The effect
of the time value of money is not material and therefore the provisions are not discounted.
Long-term contracts
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit
included is calculated on a basis to reflect the proportion of the work carried out at the period end, by recording turnover and related costs 
(as defined in Stock above) as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred
to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been
accepted by the customer. Full provision is made for losses on all contracts in the period in which they are first foreseen.
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 35
Statement of accounting policies
At 31 March 2005 Taxation
Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rate and laws
that have been enacted or substantively enacted by the balance sheet date.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where
transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax 
with the following exceptions:
• provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal 
of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding
agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance
sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the
replacement assets are sold;
• provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries only to the extent that, 
at the balance sheet date, dividends have been accrued as receivable;
• deferred tax assets are recognised only to the extent that the Directors consider that it is more likely than not that there will be suitable
taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences
reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Research and development
Research and development expenditure is written off to the profit and loss account as incurred.
Foreign currencies
Company
Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction or at the contracted rate if 
the transaction is covered by a forward foreign currency contract. Monetary assets and liabilities denominated in foreign currencies are 
retranslated at the rate of exchange ruling at the balance sheet date or if appropriate at the forward contract rate. All differences are taken 
to the profit and loss account with the exception of differences on foreign currency borrowings, to the extent that they are used to finance 
or provide a hedge against foreign equity investments, which are taken directly to reserves together with the exchange difference on the
carrying amount of the related investments. Tax charges and credits attributable to exchange differences on those borrowings are also 
dealt with in reserves.
Group
The balance sheets of overseas subsidiary undertakings are translated at the rate of exchange ruling at the balance sheet date. The profit 
and loss and cash flow of overseas subsidiary undertakings are translated at the average rate for the year. The exchange difference arising on
the retranslation of opening net assets is taken directly to reserves, as well as the difference between the average and the closing rate effect 
on the profit and loss for the year. All other translation differences are taken to the profit and loss account with the exception of differences 
on permanent inter-company loans with the same characteristics as equity, which are taken directly to reserves; and on foreign currency
borrowings to the extent that they are used to finance or provide a hedge against group equity investments in foreign enterprises, which are
taken directly to reserves together with the exchange difference on the net investment in these enterprises. Tax charges and credits attributable
to exchange differences on those borrowings are also dealt with in reserves.
Derivative instruments
The Group uses forward foreign currency contracts to reduce exposure to foreign exchange rates. The Group also uses interest rate swaps to
adjust interest rate exposures.
The Group considers its derivative instruments qualify for hedge accounting when the following criteria are met. 
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 36
Statement of accounting policies continued
At 31 March 2005 Forward foreign currency contracts
The criteria for forward foreign currency contracts are:
• the instrument must be related to a firm foreign currency commitment;
• it must involve the same currency as the hedged item; and
• it must reduce the risk of foreign currency exchange movements on the Group’s operations.
The rates under such contracts are used to record the hedged item. As a result, gains and losses are offset against the foreign exchange gains
and losses on the related financial assets and liabilities, or where the instrument is used to hedge a committed future transaction, are not
recognised until the transaction occurs.
Interest rate swaps
The Group’s criteria for interest rate swaps are:
• the instrument must be related to an asset or a liability; and
• it must change the character of the interest rate by converting a variable rate to a fixed rate or vice versa.
Interest differentials are recognised by accruing the net interest payable. Interest rate swaps are not revalued to fair value or shown on the
Group balance sheet at the year end. If they are terminated early, the gain or loss is spread over the remaining maturity of the original instrument.
Pension scheme arrangements
The Group contributes to group personal pension arrangements for its employees. The pension cost is the amount of contributions payable in
the year (see note 21).
Share-based payment transactions
The Group has an employee share incentive plan and an Employee Benefit Trust for the granting of non-transferable options to Directors and
senior employees. In accordance with UITF 17 ‘Employee Share Schemes’, the cost of awards to employees that take the form of shares or
rights to shares is charged to the operating results in the period to which the performance relates. The charge is based on the discount to fair
value of the shares at the date an award is made to the participants of the scheme. The charge is added back to distributable reserves.
Employee Benefit Trust
Shares in the Group held by the Employee Benefit Trust are treated as treasury shares and presented in the balance sheet as a deduction from
equity (see note 18).
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 37 1. TURNOVER
Turnover, which is stated net of value added tax, represents amounts invoiced to third parties, except in respect of long-term contracts 
where turnover represents the sales value of work done in the year, including estimates in respect of amounts not invoiced. Turnover in 
respect of long-term contracts is calculated as that proportion of total contract value which costs incurred to date bear to total expected 
costs for that contract.
Turnover is attributable to two continuing activities, being the supply of sensor components and subsystems, as well as the supply of electronic
tubes and subsystems. The acquisition of the Dynex sensor business during the previous year is considered immaterial for disclosure
purposes, hence no analysis of continuing acquisitions is made.
An analysis of turnover, operating profit and net assets by activity is given below:
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
GROUP TURNOVER
Sensors
Medical and Science 15,457 12,537
Aerospace and Defence 16,753 16,079
Commercial and Industrial 15,890 15,473
48,100 44,089
Electronic Tubes
Medical and Science 18,182 18,032
Aerospace and Defence 10,770 13,357
Commercial and Industrial 23,495 22,088
52,447 53,477
Total 100,547 97,566
OPERATING PROFIT
Sensors 15,265 12,154
Electronic Tubes 13,465 14,885
Central Overheads (17,582) (16,598)
Exceptional items – central overheads (1,901) (586)
9,247 9,855
NET ASSETS
Sensors 16,588 15,974
Electronic Tubes 15,781 13,006
Central unallocated net assets/(liabilities) 2,069 (21,916)
34,438 7,064
Central unallocated net assets/(liabilities) comprise certain fixed assets, debtors, creditors, loan notes, net debt and taxation.
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 38
Notes to the financial statements 1. TURNOVER continued
An analysis of turnover, profit and net assets by geographical market is given below:
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
GROUP TURNOVER
Turnover by destination:
United Kingdom 25,081 29,893
United States 35,802 30,313
Rest of the world 39,664 37,360
100,547 97,566
Turnover by origin:
United Kingdom 56,824 60,566
United States 36,836 30,910
Rest of the world 6,887 6,090
100,547 97,566
OPERATING PROFIT BY ORIGIN
United Kingdom 6,265 8,649
United States 2,727 1,062
Rest of the world 255 144
9,247 9,855
NET ASSETS BY ORIGIN
United Kingdom (including central unallocated assets) 31,176 5,437
United States 2,718 1,275
Rest of the world 544 352
34,438 7,064
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 39 2. OPERATING PROFIT
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
The operating profit is stated after charging:
Depreciation of own fixed assets 5,588 5,419
Auditors’ remuneration – audit services (Company £77,500, 2004: £10,000) 151 84
– non-audit services 322 11
Operating lease rentals – land and buildings 211 182
– plant and machinery 312 355
Amortisation of patents and goodwill 1,237 1,084
Initial Public Offering costs 1,901 –
Environmental provision – 402
Restructuring costs – 124
Costs associated with the management buy-out – 60
Product warranty costs 2,545 2,632
Non-audit services includes £25,000 (2004: £11,000) in respect of IFRS consultancy services and, in 2004, further assurance services and 
£297,000 (2004: £nil) in respect of IPO fees. In addition, the auditors received additional non-audit fees of £360,000 relating to the IPO which
have been charged against the share premium account.
3. STAFF COSTS
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Wages and salaries 31,174 30,571
Social Security costs (including US healthcare) 3,571 3,400
Other pension costs (see note 21) 1,241 1,080
UITF 17 charge in respect of share-based payments 65 –
36,051 35,051
The average number of employees (including Executive Directors) during the year was as follows:
No. No.
Manufacturing 891 881
Administration 405 411
1,296 1,292
Details of Directors’ remuneration for the year are provided in the Directors’ Remuneration Report on pages 24 to 26.
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 40
Notes to the financial statements continued 4. OPERATING EXCEPTIONAL ITEMS
On 23 July 2004 the Group was admitted to the London Stock Exchange. The costs incurred with the admission and associated funding
amounted to £4,043,000, of which £1,682,000 has been set against share premium and £460,000 will be amortised as interest charges over
five years. The remaining £1,901,000 has been charged in arriving at the operating profit. The effect of the exceptional item on the amount
charged to the profit and loss account for taxation is a decrease in the charge for the year of £167,000.
In the year to 31 March 2004, the Group made provision for environmental costs amounting to £402,000 in relation to ground restoration
required by the Environmental Protection Act. The effect on the taxation charge in the profit and loss account in respect of this provision was a
reduction of £121,000. In addition the Group incurred restructuring costs amounting to £124,000 and costs associated with the management
buy-out of £60,000. The effect on the taxation charge in the profit and loss account in respect of these charges was a reduction of £55,000.
5. NET INTEREST PAYABLE
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Interest payable on overdrafts and bank loans 2,310 3,134
Interest payable on other loans 549 1,998
Amortisation of issue costs on debt* 2,236 378
5,095 5,510
Interest receivable (154) (298)
4,941 5,212
* Included within the balance of £2,236,000 for the year ended 31 March 2005 is an amount of £2,050,000 which relates to accelerated 
amortisation of debt issue costs arising as a result of the early settlement of debt.
6. TAX ON PROFIT ON ORDINARY ACTIVITIES
(a) The tax charge represents:
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
UK corporation tax – current 792 1,177
– prior year – (268)
792 909
Foreign Tax 1,069 390
Total current tax (6b) 1,861 1,299
Deferred tax – origination and reversal of timing differences 197 63
2,058 1,362
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 41 6. TAX ON PROFIT ON ORDINARY ACTIVITIES continued
(b) The tax assessed on the profit on ordinary activities for the year varies from the standard rate of corporation tax in the United Kingdom (UK).
The differences are explained below:
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Profit on ordinary activities before tax 4,306 4,643
Profit on ordinary activities multiplied by the standard rate of corporation tax in the UK of 30% (2004: 30%) 1,292 1,393
Effect of:
Disallowed expenses and non-taxable income 728 318
Research and development tax credit (225) (192)
Capital allowances in advance of depreciation (168) (45)
Higher taxes on overseas earnings 185 111
Other timing differences 34 (18)
Tax under/(over) provided in previous years 15 (268)
1,861 1,299
(c) Deferred tax is provided at 30% in the financial statements as follows:
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Capital allowances in advance of depreciation 622 425
Short-term timing differences – –
Provision for deferred tax (note 16) 622 425
There are no unprovided deferred tax balances.
(d) Factors affecting future tax charges
The tax charge in future periods is likely to continue to be affected by the Group’s overseas tax rates which are higher than those in the UK,
primarily because of profits earned in North America which form a substantial part of the Group’s income. This is partially offset by the
Group’s continuing investment in research and development activities on which enhanced tax allowances will continue to be claimed, 
so long as UK tax legislation permits.
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 42
Notes to the financial statements continued 7. DIVIDENDS
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Interim dividend paid – 0.63p per share (2004: nil) 347 –
Final dividend proposed – 3.90p per share (2004: nil) 2,143 –
Total dividends paid and proposed 2,490 –
The final dividend is payable on 13 September 2005 to shareholders registered at the close of business on 19 August 2005. The interim and 
final dividends are net of the dividend payable to the Employee Benefit Trust. The number of shares held by the Employee Benefit Trust at 
31 March 2005 was 968,091.
8. EARNINGS PER ORDINARY SHARE
The calculation of earnings per share is based on earnings of £2,248,000 (2004: £3,281,000) being the profit for the financial year and on the
number of shares noted below:
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Adjusted earnings per share is arrived at using the following earnings
Profit for the financial year 2,248 3,281
Exceptional items 1,901 586
Exceptional interest charges 2,050 –
Tax impact of exceptional items (782) (176)
Adjusted earnings 5,417 3,691
No. 000 No. 000
Weighted average number of shares
For basic and adjusted earnings per share 48,944 35,720
Exercise of options 94 –
For diluted earnings per share 49,038 35,720
The adjusted earnings per share is considered to more appropriately reflect the underlying performance of the business.
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 43 9. INTANGIBLE FIXED ASSETS
Patents Goodwill Total
£000 £000 £000
COST:
At 31 March 2004 107 13,189 13,296
Exchange adjustments –11
At 31 March 2005 107 13,190 13,297
AMORTISATION:
At 31 March 2004 11 1,776 1,787
Provided during the year 10 1,227 1,237
At 31 March 2005 21 3,003 3,024
NET BOOK VALUE:
At 31 March 2005 86 10,187 10,273
At 31 March 2004 96 11,413 11,509
Intangible assets are being amortised as follows:
• Goodwill of £11,299,000 arising on the acquisition of the Marconi Applied Technologies Division in July 2002 is being amortised evenly over
the Directors’ estimate of its useful economic life of 12 years.
• Goodwill of £399,000 arising on the acquisition of the High Power Satcom business from Siemens in 1999 was being amortised evenly 
over its estimated useful economic life of 20 years. After an impairment review in the year ended 31 March 2004, this has been adjusted 
to 15 years. The outstanding balance is being amortised evenly over the remaining 10 years.
• Goodwill of £1,491,000 arising on the acquisition during the year to 31 March 2004 of the microwave car alarm business from Dynex is 
being amortised evenly over the Directors’ estimate of its useful economic life of six years. In accordance with the Group’s accounting 
policy, an impairment review has been carried out on the carrying value of this goodwill and the Directors consider that no impairment 
write-down is required.
• Patents were being amortised evenly over their useful economic life of 20 years. After an impairment review in the year ended 31 March 2004
this has been adjusted to 15 years. The outstanding balance at 31 March 2004 is being amortised evenly over the remaining 10 years. 
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 44
Notes to the financial statements continued ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 45
10. TANGIBLE FIXED ASSETS
Office
Freehold equipment,
land and Plant and fixtures and Assets under
buildings machinery fittings construction Total
£000 £000 £000 £000 £000
GROUP
COST: 
At 31 March 2004 1,017 19,536 5,318 4,005 29,876
Additions – 2,700 2,023 2,844 7,567
Disposals (56) (1,030) (1,197) – (2,283)
Reclassifications between categories – 9 (9) ––
Transfers from payments on account – 1,779 1,529 (3,308) –
Difference on exchange – – 1 – 1
At 31 March 2005 961 22,994 7,665 3,541 35,161
DEPRECIATION:
At 31 March 2004 211 6,170 1,575 – 7,956
Provided during the year 91 3,904 1,593 – 5,588
Disposals (51) (1,017) (1,193) – (2,261)
Reclassifications between categories – 4 (4) – –
Difference on exchange – – (1) – (1)
At 31 March 2005 251 9,061 1,970 – 11,282
NET BOOK VALUE:
At 31 March 2005 710 13,933 5,695 3,541 23,879
At 31 March 2004 806 13,366 3,743 4,005 21,920
The Company does not have any tangible fixed assets. 11. INVESTMENTS
Equity interests Loans to
in subsidiary subsidiary
undertakings undertakings Total
£000 £000 £000
COMPANY
Cost at 1 April 2004 and 31 March 2005 47,935 4,000 51,935
INTERESTS IN GROUP UNDERTAKINGS
Country of Description of Percentage of
Name of undertaking incorporation shares held shares held
e2v technologies (uk) Limited England and Wales Ordinary Shares 100%
e2v technologies Inc. USA Common Stock 100%
e2v technologies SAS France Ordinary Shares 100%
e2v technologies Canada Limited Canada Ordinary Shares 100%
e2v technologies GmbH Germany Ordinary Shares 100%
e2v holdings Inc. (formerly – Redwood 2002Inc.) USA Ordinary Shares 100%
EEV Limited England and Wales Ordinary Shares 100%
Group undertakings are all held by e2v technologies plc, with the exception of e2v technologies Canada Limited and e2v technologies GmbH
which are held through e2v technologies (uk) Limited, and e2v technologies Inc. which is held through e2v holdings Inc.
The principal activities of the subsidiary companies are as follows:
• e2v technologies (uk) Limited – Electrical Component Manufacturer
• e2v technologies Inc. – Sales and Distribution
• e2v technologies SAS – Sales and Distribution
• e2v technologies Canada Limited – Sales and Distribution
• e2v technologies GmbH – Sales and Distribution
• e2v holdings Inc. – Holding Company
• EEV Limited – Dormant.
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 46
Notes to the financial statements continued 12. STOCK
Group
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Raw materials and consumables 9,836 7,367
Work in progress 1,311 6,799
Contracts work in progress 3,722 2,631
Contracts payments on account (382) (799)
Finished goods and goods for resale 4,566 5,659
19,053 21,657
The Company does not have any stock.
The implementation of the SAP IT system has resulted in components that are located on the factory floor, which were previously being
reported as work in progress, being redesignated as raw materials and consumables. 
13. DEBTORS
Group Company
Year ended Year ended Year ended Year ended
31 March 2005 31 March 2004 31 March 2005 31 March 2004
£000 £000 £000 £000
Trade debtors 24,068 22,160 – –
Other debtors 981 540 154 13
Prepayments and accrued income 1,444 2,613 67 81
Amounts receivable from subsidiary undertakings – – 14,655 20,000
26,493 25,313 14,876 20,094
14. CREDITORS: amounts falling due within one year
Group Company
Year ended Year ended Year ended Year ended
31 March 2005 31 March 2004 31 March 2005 31 March 2004
£000 £000 £000 £000
Current instalments due on loans 6,158 1,587 6,158 1,587
Bank overdraft – – – 10,268
Payments received on account 2,106 3,448 – –
Trade creditors 9,516 11,839 24 –
Other taxation and social security costs 1,428 863 49 30
Other creditors 1,457 1,724 1 –
Accruals and deferred income 2,125 5,882 177 1,648
Corporation tax 502 209 – –
Proposed dividend 2,143 – 2,143 –
25,435 25,552 8,552 13,533
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 47 15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group and Company
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
LOANS
Amounts falling due:
In more than one year but not more than two years 5,000 2,838
In more than two years but not more than five years 15,000 15,716
In more than five years – 30,438
20,000 48,992
Less: issue costs (307) (1,797)
19,693 47,195
Details of loans not wholly repayable within five years are as follows:
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Secured loan 2.5% over LIBOR 
Repayable 12 July 2009 – 4,366
Secured loan 3.5% over LIBOR
Repayable 12 January 2010 – 4,366
9% loan notes repayable in six monthly instalments from June 2010 to June 2012 – 21,706
– 30,438
Less: issue costs – (285)
– 30,153
The bank loans are secured by a floating charge over the net assets of the Group.
16. PROVISIONS FOR LIABILITIES AND CHARGES
Deferred Product Group
taxation Restructuring Environmental warranty Total
£000 £000 £000 £000 £000
GROUP
At 31 March 2004 425 51 1,402 3,185 5,063
Arising during the year 197 – – 1,732 1,929
Utilised – (51) (195) (2,545) (2,791)
At 31 March 2005 622 – 1,207 2,372 4,201
Environmental
A provision is recognised for expected environmental costs relating to UK manufacturing operations. It is expected that most of these costs will
be incurred within three years of the balance sheet date.
Product Warranty
A provision is recognised for expected claims on products sold in the warranty period. The warranty period can be date based or hours usage
based. It is expected that most of these costs will be incurred in the next financial year, and all will have been incurred within four years of the
balance sheet date.
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 48
Notes to the financial statements continued ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 49
17. SHARE CAPITAL
Authorised
2005 2005 2004 2004
No. £000 No. £000
GROUP AND COMPANY
Ordinary shares of 10p each –– 409,091 41
A ordinary shares of 1p each –– 2,045,455 20
B ordinary shares of £1 each – – 272,727 273
Ordinary shares of 5p each 75,000,000 3,750 ––
3,750 334
Allocated, called up and fully paid
2005 2005 2004 2004
No. £000 No. £000
Ordinary shares of 10p each –– 388,636 39
A ordinary shares of 1p each –– 2,045,455 20
B ordinary shares of £1 each – – 218,182 219
Ordinary shares of 5p each 55,916,451 2,796 – –
2,796 278
Immediately prior to flotation the following transactions in the Company’s share capital took place:
• The issued share capital of the Company was increased to £286,676 by the issue of 20,453 ordinary 10p shares and 7,130 B ordinary £1
shares, issued at par to the Employee Benefit Trust.
• 1,240,506 of the A ordinary shares of 1p each were then converted to deferred shares of 1p each and 223,531 of the ordinary shares of 10p each
were converted into 2,235,310 deferred shares of 1p each. The deferred shares of 1p each carried no voting rights and did not rank for dividend.
• The Company’s authorised share capital was reduced from £334,091 to £286,676 by the cancellation of unissued B ordinary shares.
• Each of the remaining ordinary shares of 10p each was converted into one ordinary share of 1p each and nine deferred shares of 1p each. 
• Each of the remaining B ordinary shares of £1 each was converted into one B ordinary share of 1p each and 99 deferred shares of 1p each.
• Each of the remaining A ordinary shares of 1p each and B ordinary shares of 1p each were converted into one ordinary share of 1p each,
which, together with the existing ordinary shares of 1p each in the capital of the Company, constituted a single class of ordinary shares.
• The ordinary shares of 1p each were then consolidated by issuing one ordinary share of 5p each for every five ordinary shares of 1p each,
with any fractions converting into deferred shares of 1p each.
• Following the consolidation, the authorised share capital of the Company was increased to £4,024,518 by the creation of an additional
74,756,842 ordinary shares of 5p ranking pari passu in all respects with the existing ordinary shares of 5p each.
• The Company purchased all of the deferred shares of 1p each owned by institutional investors for a consideration of one pence per share and
all of the deferred shares of 1p each owned by non-institutional investors for a consideration of one pence per non-institutional investor.
• The Company allotted and issued 4,977 ordinary shares of 5p each to the EBT at par.
• The Company appropriated £1,835,335 of the Company’s share premium account to and amongst the holders of ordinary shares of 5p each
on the Company’s register immediately prior to the issue of new shares on flotation and applied that sum on their behalf in paying up in full
36,706,914 new ordinary shares of 5p each.
• On flotation, the Company issued 18,961,623 ordinary shares of 5p each, of which 141,262 were issued to employees. The shares were
issued at £1.55 giving a total consideration of £29,390,516 of which £28,442,435 has been allocated to the share premium account. ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 50
Notes to the financial statements continued
17. SHARE CAPITAL continued
Costs associated with the IPO are disclosed in note 4 to the Financial Statements.
The Employee Benefit Trust holds 968,091 ordinary shares of 5p each. The market value of the shares at 31 March 2005 was £2.26p per share.
At the year end options had been granted, but not yet vested, over 258,000 shares.
Options have been granted under share option schemes, as detailed in the Remuneration Report on pages 24 to 26, to subscribe for ordinary
shares in the Company as follows:
Number of Value at 
options date of grant Exercise price Exercise dates Expiry date
Pre IPO options 345,636 Nil Nil 23.07.04 23.07.14
LTIPs 258,000 174p Nil 03.10.07 N/A
Share option plan 240,000 196.5p 196.5p 01.02.08 31.12.08
Share Save Scheme 928,621 174p 165.3p 01.11.07 30.04.08
The Company has taken advantage of the exemption conferred by UITF 17 and not charged any discount arising on shares to be issued under
the SAYE share option scheme to the profit and loss account.
All three classes of shares at 31 March 2004 carried equal voting rights and were treated as one class of share in respect of dividend rights. 
At 31 March 2004, on a return of assets on liquidation or capital reduction or otherwise, the assets of the Company remaining after the payment
of its liabilities would have been applied in the following order of priority:
• First in paying to the holders of A ordinary shares £1.00 per share together with a sum equal to any arrears or accruals of any 
dividend declared.
• Second in paying to the holders of B ordinary shares and the ordinary shares, equally as if they constituted one class of share, £1.00 per
share in the case of the ordinary shares and £1.01 per share in the case of the B ordinary shares, in each case together with a sum equal 
to any arrears or accruals of any dividend declared.
The balance of the assets would have been distributed amongst the holders of the Equity Shares (equally as if they were one class of share) 
in proportion to the numbers of A ordinary shares, B ordinary shares and ordinary shares held by them respectively. ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 51
18. RESERVES
Investment in
Share Capital own shares held Profit
premium redemption by employee and loss
account reserve benefit trust account Total
£000 £000 £000 £000 £000
GROUP
At 31 March 2004 2,376 – – 4,410 6,786
Conversion of shares pre IPO (1,835) – – – (1,835)
Redemption of shares pre IPO – 274 – (12) 262
Issue of shares on IPO 28,442 – – – 28,442
IPO costs (1,682) – – – (1,682)
Investment in own shares by EBT – – (10) – (10)
Loss for the year – – – (242) (242)
UITF 17 charge in respect of share-based payments ––– 65 65
Exchange differences – – – (144) (144)
At 31 March 2005 27,301 274 (10) 4,077 31,642
Investment in 
Share Capital own shares held Profit
premium redemption by employee and loss
account reserve benefit trust account Total
£000 £000 £000 £000 £000
COMPANY
At 31 March 2004 2,376 – – 8,647 11,023
Conversion of shares pre IPO (1,835) – – – (1,835)
Redemption of shares pre IPO – 274 – (12) 262
Issue of shares on IPO 28,442 – – – 28,442
IPO costs (1,682) – – – (1,682)
Investment in own shares held by EBT – – (10) – (10)
Loss for the year – – – (417) (417)
UITF 17 charge in respect of share-based payments ––– 65 65
At 31 March 2005 27,301 274 (10) 8,283 35,848 ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 52
Notes to the financial statements continued
19. RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS’ FUNDS
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Profit for the financial year 2,248 3,281
Exchange differences (net) (144) (784)
UITF 17 charge on share-based payments 65 –
2,169 2,497
Dividends paid and proposed (2,490) –
New shares issued 29,399 14
Purchase of deferred shares (12) –
Initial public offering costs (1,682) –
Investment in own shares held by EBT (10) –
Net addition to shareholders’ funds 27,374 2,511
Opening shareholders’ funds 7,064 4,553
Closing shareholders’ funds 34,438 7,064
20. OBLIGATIONS UNDER OPERATING LEASES
At 31 March 2005 the Group had annual commitments under non-cancellable operating leases as follows:
Land and Land and
buildings Other buildings Other
2005 2005 2004 2004
£000 £000 £000 £000
OPERATING LEASES WHICH EXPIRE
Within one year 123 153 – 218
In two to five years 88 199 182 163
211 352 182 381
21. PENSIONS
The Group operates three defined contribution pension schemes, the e2v technologies Directors Standard Life Pension Scheme, the e2v
Technologies Employees Norwich Union Pension Scheme and the e2v technologies inc. 401K Pension Scheme. The costs incurred during the
year were £1,241,000 (2004: £1,080,000). There were no outstanding contributions at 31 March 2005 (2004: £nil). 
22. RELATED PARTY TRANSACTIONS
The Group has contracted for consultancy services with Horne Roberts, a company in which Messrs Hassall and Slaughter have an interest.
Amounts paid under the agreement for the year, incurred up to the date of flotation, amount to £4,176 (2004: £105,415), and the Group owed
£nil under the agreement at 31 March 2005 (2004: £nil).
The Group has contracted for consultancy services with Roland Berger, a company in which Ian Godden had an interest until October 2004.
Amounts paid under the contract for the year amount to £nil (2004: £38,150), and the Group owed £nil under the agreement at 31 March 2005
(2004: £nil).  ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 53
23. CAPITAL COMMITMENTS
Amounts contracted for but not provided in the financial statements amounted to £3,628,000 (2004: £2,622,000) for the Group and £nil 
(2004: £nil) for the Company.
24. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS
The Group’s principal financial instruments, other than derivatives, comprise bank loans, cash and loan notes, which were repaid in full during
the year. The main purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various other financial
instruments such as trade debtors and trade creditors that arise directly from its operations. In addition, the Group issued shares during the
year both prior to and on flotation. Further details covering the exchange rate risk, the loan facility and the flotation are set out in the
Financial Review.
The Group also enters into derivative transactions (principally interest rate swaps and forward currency contracts). The purpose is to manage
the interest rate and currency risks arising from the Group’s operations and its sources of finance.
It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments shall be undertaken.
The main risks arising from the Group’s financial instruments are interest rate risk, liquidity risk and foreign currency risk. The Board reviews 
and agrees policies for managing each of these risks and they are summarised below.
Interest rate risk
The Group has sterling denominated borrowings at both fixed and floating rates of interest and uses interest rate swaps to generate the
desired interest profile and to manage the Group’s exposure to interest fluctuations. The Group’s policy is to maintain as much of its borrowings
as possible at fixed rates of interest to minimise this exposure. At the year end, 91% (2004: 100%) of the Group’s borrowings were at fixed
rates of interest after taking account of interest rate swaps. The terms of the interest rate swap match the terms of the floating rate loans to
maximise the effectiveness of the hedge.
Liquidity risk
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts, bank loans and loan
notes. The Group’s policy is to use funds in excess of the ongoing operating requirements to make early repayments against the bank
borrowings on an annual basis. 
The Group’s objective is to maintain a positive cash balance at a level adequate for daily operations while retaining the option to use overdraft
facilities for short-term flexibility as necessary.
Foreign currency risk
The Group has operations in the United States, France, Canada and Germany. As a result, the Group’s balance sheet can be affected by
movements in the sterling exchange rates with each of those countries. The Group does not currently hedge against this exposure, other than
using natural hedges where appropriate, such as purchasing components in US dollars or Euros. 
The Group has transactional currency exposures. Such exposures arise from sales by an operating unit in currencies other than the unit’s
functional currency. The Group sells approximately 75% of its sales outside the UK much of which is non-sterling and therefore subject to
foreign exchange movements as all products are manufactured in the UK. The Group manages its transactional currency exposures centrally 
by using forward currency contracts to minimise these currency exposures. The forward currency contracts must be in the same currency 
as the hedged item. The majority of these contracts are entered into to hedge against cash received on US$ sales. ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 54
Notes to the financial statements continued
24. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS continued
At 31 March 2005, the Group had hedged 71% of its forecast US$ cash flow, extending to 31 March 2006. The foreign exchange strategy is set
by the Directors and is operated within these parameters with the assistance of specialist foreign exchange advisers.
With the exception of the analysis of currency exposures, the disclosures below exclude short-term debtors and creditors.
Interest rate risk profile of financial liabilities
The interest rate profile of the financial liabilities of the Group as at 31 March is as follows:
Total Floating rate Fixed rate
£000 £000 £000
2005
Sterling 25,851 2,500 23,351
2004
Sterling 48,782 – 48,782
Further analysis of the interest rate profile at 31 March 2005 and 31 March 2004 is as follows:
Weighted average 
Weighted average period for which
interest rate interest rate is fixed
% Years
CURRENCY
2005
Sterling 5.9 2
2004
Sterling 8.7 5.2
The amounts shown in the tables above take into account the interest rate swap used to manage the interest rate profile of financial liabilities.
The fixed rate financial liabilities comprise floating rate sterling denominated bank loans that bear interest at rates based on LIBOR plus 0.75%
to 1.25%, which are then fixed through the use of interest rate swaps. ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 55
24. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS continued
The interest rate profile of the financial assets of the Group as at 31 March is as follows:
Floating rate
financial
assets
£000
2005
Sterling 3,025
US dollar 570
Euro 474
Total 4,069
2004
Sterling 1,635
US dollar 1,286
Euro 1,554
Total 4,475
Floating rate financial assets comprise cash deposits bearing interest at either daily rates or seven day rates. 
Currency exposures
Gains and losses arising from the Group’s net investment overseas (in other words, its structural currency exposures) are recognised in the
statement of total recognised gains and losses.
The table overleaf shows the Group’s currency exposures; in other words, those transactional (or non-structural) exposures that give rise to the
net currency gains and losses recognised in the profit and loss account. Such exposures comprise the monetary assets and monetary liabilities
of the Group that are not denominated in the operating (or ‘functional’) currency of the operating unit involved. ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 56
Notes to the financial statements continued
24. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS continued
At 31 March, these currency exposures are as follows:
Net foreign currency monetary assets 
Sterling US dollar Other Total
£000 £000 £000 £000
FUNCTIONAL CURRENCY OF GROUP OPERATIONS
2005
Sterling – – 1,795 1,795
Other 656 – – 656
656 – 1,795 2,451
2004
Sterling – – 1,917 1,917
Other 405 – – 405
405 – 1,917 2,322
The amounts shown in the table above take into account the effect of forward foreign currency contracts entered into to manage these 
currency exposures.
At 31 March, the Group also held open various forward foreign currency contracts taken out to hedge future firm foreign currency commitments.
Maturity of financial liabilities
The maturity profile of the Group’s financial liabilities at 31 March is as follows:
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
In one year or less, or on demand 6,158 1,587
In more than one year, but not more than two 4,908 2,460
In more than two years, but not more than five 14,785 14,582
In more than five years – 30,153
25,851 48,782
Borrowing facilities
The Group has various loan facilities available to it, which are repayable on demand. The undrawn committed facilities available at 31 March in
respect of which all conditions precedent had been met at that date are as follows:
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Expiring in more than two years 32,500 5,695
£30,000,000 (2004: £nil) of the undrawn loan and overdraft facilities relates to an acquisition facility. ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 57
24. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS continued
Fair values of financial assets and financial liabilities
Set out below is a comparison by category of book values and fair values of the Group’s financial assets and financial liabilities as at 31 March:
Book value Fair value Book value Fair value
2005 2005 2004 2004
£000 £000 £000 £000
PRIMARY FINANCIAL INSTRUMENTS
Short-term borrowings and current portions of long-term borrowings (6,158) (6,158) (1,587) (1,587)
Long-term borrowings (19,693) (19,693) (47,195) (47,195)
Cash and short-term deposits 4,069 4,069 4,475 4,475
DERIVATIVE FINANCIAL INSTRUMENTS HELD TO MANAGE THE 
INTEREST RATE PROFILE
Interest rate swaps – (9) – (114)
DERIVATIVE FINANCIAL INSTRUMENTS HELD TO HEDGE THE CURRENCY 
EXPOSURE ON FIRM FUTURE COMMITMENTS
Forward foreign currency contracts – 704 – 1,364
Market values have been used to determine the fair value of interest rate swaps and forward foreign currency contracts. The fair value of all 
other items has been calculated by discounting the expected future cash flows at prevailing interest rates.
Hedges
The Group’s policy is to hedge the following exposures:
• interest rate risk; and
• transactional currency exposures and currency exposures on future committed sales.
Gains and losses on instruments used for hedging are not recognised until the exposure that is being hedged is itself recognised. Unrecognised
gains and losses on financial instruments used for hedging are as follows:
Gains Losses Total
£000 £000 £000
2005
Gains and losses arising in previous years that were recognised in 2005 1,364 (94) 1,270
Gains and losses unrecognised at 31 March 2005 704 (9) 695
OF WHICH:
Gains and losses expected to be recognised in the profit and loss account in 2006 666 – 666
2004
Gains and losses arising in previous years that were recognised in 2004 18 (143) (125)
Gains and losses unrecognised at 31 March 2004 1,364 (114) 1,250
OF WHICH:
Gains and losses expected to be recognised in the profit and loss account in 2005 1,161 – 1,161 25. NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of operating profit to net cash inflow from operating activities
Year ended Year ended
31 March 2005 31 March 2004
£000 £000
Operating profit 9,247 9,855
UITF 17 charge on share based payments 65 –
Depreciation of tangible fixed assets 5,588 5,419
Amortisation of patents 10 6
Amortisation of goodwill 1,227 1,078
(Decrease)/increase in prepayments on contracts (1,342) 2,264
(Increase) in debtors (1,100) (1,106)
Decrease/(increase) in stocks 2,604 (3,921)
(Decrease)/increase in creditors (4,452) 5,672
(Decrease)/increase in provisions (1,059) 945
Net cash inflow from operating activities 10,788 20,212 
Within net cash inflows from operating activities were cash outflows of £1,901,000 (2004: £nil) in respect of costs associated with admission to
the London Stock Exchange, £195,000 (2004: £208,000) in respect of environmental costs, £nil (2004: £60,000) in respect of costs associated
with the management buy-out and £51,000 (2004: £194,000) in respect of restructuring costs.
(b) Analysis of net debt
Non-cash movements
At 31 March Capitalised loan Amortisation Exchange At 31 March
2004 Cash flow issue costs of debt costs differences 2005
£000 £000 £000 £000 £000 £000
Cash 4,475 (253) – – (153) 4,069
Loans (48,782) 24,707 460 (2,236) – (25,851)
(44,307) 24,454 460 (2,236) (153) (21,782)
ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 58
Notes to the financial statements continued ACCOUNTS e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 59
Financial record
Year ended Year ended Year ended
31 March 2005 31 March 2004 31 March 2003
£000 £000 £000
TURNOVER
Sensors 48,100 44,089 34,216
Electronic Tubes 52,447 53,477 58,669
Total 100,547 97,566 92,885
Operating profit before amortisation and exceptional items 12,385 11,525 9,446
Amortisation of intangible assets (1,237) (1,084) (710)
Restructuring costs – (124) (681)
Environmental costs – (402) (346)
Costs associated with the management buy-out – (60) (946)
Initial public offering costs (1,901) – –
Operating profit 9,247 9,855 6,763
Net interest payable (4,941) (5,212) (3,336)
Profit on ordinary activities before taxation 4,306 4,643 3,427
Tax on profit on ordinary activities (2,058) (1,362) (1,007)
Profit for the financial year 2,248 3,281 2,420
Earnings per share – basic 4.59p 9.19p
Earnings per share – diluted 4.58p 9.19p
Earnings per share – adjusted 11.07p 10.33p
Dividend per ordinary share 4.53p 0.0p
BALANCE SHEET
Fixed assets 34,152 33,429 29,462
Net current assets 24,180 25,893 32,853
Creditors: amounts due after more than one year (19,693) (47,195) (53,960)
Provisions for liabilities and charges (4,201) (5,063) (3,802)
34,438 7,064 4,553 Notice is hereby given that the next Annual General Meeting of e2v technologies plc (the “Company”) will be held at ABN AMRO, 199 Bishopsgate,
London EC2M 3XW on Thursday 8 September 2005 at 11.30am for the following purposes:
1. To receive and adopt the accounts and the reports of the directors and auditors for the year ended 31 March 2005 (resolution 1).
2. To receive and adopt the Remuneration Report as set out in the Annual Report for the year ended 31 March 2005 (resolution 2).
3. To declare a final dividend of 3.90p per share payable on 13 September 2005 to shareholders on the register at the close of business on 
19 August 2005 (resolution 3).
4. To re-elect K Attwood (who was due to retire by rotation) as a director (resolution 4).
5. To re-elect M Hannant (who was due to retire by rotation) as a director (resolution 5). 
6. To re-elect J Brooks as a director following his appointment during the year (resolution 6).
7. To re-appoint Ernst & Young LLP as auditors (resolution 7).
8. To authorise the directors to determine the remuneration of Ernst & Young LLP (resolution 8).
9. To consider and, if thought fit, pass the following resolution as an ordinary resolution:
That the directors be and they are hereby generally and unconditionally authorised in accordance with Section 80 of the Companies Act 1985
to exercise all the powers of the Company to allot relevant securities (as defined in sub section (2) of the said Section 80) up to an aggregate
nominal amount of  £878,465. This authority shall expire on the conclusion of the Annual General Meeting to be held in 2006 save that the
Company may before such expiry make an offer or agreement which would or might require securities to be allotted after such expiry and the
directors may allot relevant securities in pursuance of such offer or agreement as if the authority conferred hereby had not expired (resolution 9).
10. To consider and, if thought fit, pass a resolution as a special resolution:
That, subject to the passing of resolution 9 set out in paragraph 9 above, and in place of all existing powers,  the directors are hereby generally
empowered pursuant to section 95 of the Companies Act 1985 and under article 6.1 of the Company’s Articles of Association, to allot equity
securities (within the meaning of section 94(2) to 94(3A) of the Companies Act 1985) for cash, pursuant to the authority conferred by resolution 9
as if section 89(1) of the Companies Act 1985 did not apply to such allotment, provided that this power shall expire at the conclusion of the
Annual General Meeting to be held in 2006. This power shall be limited to the allotment of equity securities:
10.1 in connection with an issue by way of rights (including, without limitation, under a rights issue, open offer or similar arrangement) in favour of
holders of ordinary shares of 5 pence each in the capital of the Company in proportion (as nearly as may be practicable) to their existing holdings 
of ordinary shares, but subject to such exclusions or other arrangements as the directors deem necessary or expedient in relation to fractional
entitlements or any legal, regulatory or practical problems under the laws of any territory, or the requirements of any regulatory body or stock
exchange; and
10.2 otherwise than pursuant to paragraph 10.1 above, up to an aggregate nominal amount of £139,800, being approximately 5% of the Company’s
current issued share capital, but the Company may make an offer or agreement which would or might require equity securities to be allotted after
this power expires and the directors may allot equity securities in pursuance of such offer or agreement as if this power had not expired (resolution 10).
11. To consider and, if thought fit, pass a resolution as a special resolution:
That, under article 5.2 of the Company’s Articles of Association and section 166 of the Companies Act 1985, the Company be generally and
unconditionally authorised to make market purchases (within the meaning of section 163(3) of the Companies Act 1985) of ordinary shares of 
5 pence each in the capital of the Company on such terms and in such manner as the directors shall determine provided that:
11.1 the maximum number of shares acquired under this authority will be 5,591,645, being approximately 10% of the current issued ordinary share
capital of the Company; 
11.2 the maximum price paid for each such share (exclusive of expenses) is equal to 105% of the average middle market quotations for an ordinary
share in the capital of the Company as derived from the London Stock Exchange Daily Official List for the five business days immediately
preceding the day on which the share is contracted to be purchased; and  
11.3 this authority will expire at the conclusion of the Annual General Meeting to be held in 2006 (resolution 11).
By order of the board
Mike Hannant Registered office
Group Company Secretary 106 Waterhouse Lane
22 June 2005 Chelmsford, Essex CM12QU
Notes
1. A member entitled to attend and vote at the above meeting is entitled to appoint a proxy to attend and, on a poll, vote instead of him/her. 
A proxy need not be a member of the Company.
2. To be valid a form of proxy and, if applicable, any power of attorney or other authority under which it is signed, or a notarially certified copy of such power of authority,
should be sent so as to reach Lloyds TSB Registrars not less than 48 hours before the start of the meeting.
3. Members returning a form of proxy will also be able to attend the meeting and vote in person should they wish to do so.
4. For the purposes of determining who is entitled to attend or vote (whether on a poll or otherwise) at the meeting, a person must be entered on the register of members
by 6.00pm on 6 September 2005 and shall be able to vote only on those ordinary shares registered in that person’s name at that time. Any changes to entries made
after 6.00pm on 6 September 2005 shall be disregarded in determining the rights of any person to attend or vote at the meeting.
NOTICE OF ANNUAL GENERAL MEETING e2v ANNUAL REPORT AND ACCOUNTS 2005 PAGE 60
Notice of Annual General Meeting e2v technologies plc
106 Waterhouse Lane
Chelmsford, Essex
London CM1 2QU
Tel: +44 (0) 1245 493 493
Fax: +44 (0) 1245 492 492
www.e2v.com
Investor relations enquiries to:
investorfeedback@e2v.com
OUR VISION IS:
To change the world for the better using our skills in material science and expertise in 
advanced technology.
OUR MISSION IS:
To place the customer at the heart of our business, providing products that offer discriminating
levels of performance and enhance their competitive advantage, thereby maximising our collective
return on innovation. In doing so, we will be recognised by both our customers and competitors as 
a premium quality supplier of enabling technologies that push scientific boundaries to the next 
level and our aim is to be number one or two in the markets in which we choose to compete.
OUR VALUES ARE:
Connectivity: Making the most out of our connections within the Company and with our customers,
suppliers and stakeholders worldwide. Our business relies on long-term partnerships.
Innovation: Placing e2v technologies at the forefront of new technologies and new thinking.
Integrity: Committing to being honest, unambiguous, clear and straightforward in all our dealings
with people throughout our business activities and operations.
Raising the bar: The continuous improvement of our products and how we work.
01 Financial highlights
02 Chairman’s statement
03 Business overview
04 Chief Executive’s report
13 Financial review
16 Board of Directors
18 Directors’ report
19 Corporate Governance report
22 Corporate Social Responsibility
24 Directors’ Remuneration report
27 Directors’ responsibilities
28 Independent auditor’s report
29 Contents to the financial statements
59 Financial record
60 Notice of Annual General Meeting
INTRODUCTION e2v ANNUAL REPORT AND ACCOUNTS 2005
e2v technologies plc Annual Report and Accounts 2005
e2v technologies plc
ANNUAL REPORT AND ACCOUNTS 2005