Oxford Instruments Plc · LSE:OXIG
Oxford Instruments — FY2009 Earnings Presentation
31 slides from Oxford Instruments's earnings presentation, Jun 9, 2009
Slide 1: Preliminary Results Announcement June 9th 2009
Oxford Instruments – 1959-2009 Celebrating 50 years of scientific excellence and innovation Preliminary Results Announcement June 9th 2009 © Oxford Instruments The Business of Science®
Slide 2: Agenda
Oxford Instruments Agenda • Overview Jonathan Flint • Financial Summary Kevin Boyd • Operational Review & Outlook Jonathan Flint © Oxford Instruments The Business of Science®
Slide 3: Overview
Oxford Instruments Overview • Turnover growth of 17% • Adjusted Profit Before Tax up 17% • Operating cash flow increased to £14.4m • Final dividend maintained at 6.0 pence • New products successfully launched • Acquisitions continue to perform well • Business restructured to provide on-going savings
Slide 4: A game of two halves …
Oxford Instruments A game of two halves … • First six months of the year on track • From November 2008 some markets soften • Contingency plans implemented • Successful reshaping of the business © Oxford Instruments The Business of Science®
Slide 5: Our markets – status to date
Oxford Instruments Our markets – status to date • Sectors • Geography Research (general) Europe Research (pharma) USA Industrial (general) China Industrial (environmental) Russia/India Latin America Other Asia © Oxford Instruments The Business of Science®
Slide 6: Worldwide Restructuring
Oxford Instruments Worldwide Restructuring High Wycombe Hobro closed EBSD centre of Chicago closed excellence Scotts Valley Shanghai manufacturing manufacturing • 15% reduction in workforce • Reshaping Molecular Biotools business • Movement of product lines to consolidate sites © Oxford Instruments
Slide 7: Drive for innovation
Oxford Instruments Drive for innovation • Continued focus on R&D • New product launches • Continue to take market share • Recognition from peers as Best Technology Company © Oxford Instruments The Business of Science®
Slide 8: Acquisitions/Disposals
Oxford Instruments Acquisitions/Disposals • Acquisitions contributing to plan • Two Acquisitions in first half Technology & Devices International Link Analytical AB • Two Disposals Minority shareholding in Oxford Diffraction to Varian Inc Molecular Beam Epitaxy business to Riber SA © Oxford
Slide 9: Our objective is to double the size of the business
Oxford Instruments Our objective is to double the size of the business and improve ROS by 10 percentage points over five years • Achieved growth targets for first three years • Second half year showed marked slowing of industrial markets • Decisive action on costs and efficiencies protected year thr
Slide 10: Financial Review
Oxford Instruments Financial Review Kevin Boyd Group Finance Director © Oxford Instruments The Business of Science®
Slide 11: Financial Highlights
Oxford Instruments Financial Highlights 2008/09 2007/08 £'M £'M Growth Revenues 206.5 176.5 Reported 17.0% Gross profit 90.7 73.2 Constant -2.1% Currency Trading profit 13.1 10.6 Finance costs (2.0) (1.1) Adjusted profit before tax 11.1 9.5 08/09 07/08 Amortisation of acquired intangibles (4.3) (2.9
Slide 12: Sales Bridge
Oxford Instruments Sales Bridge 240 10.4 (14.1) 33.7 220 206.5 200 176.5 180 £'M 160 140 120 100 2007/08 FX Acq/Dis Vol 2008/09 © Oxford Instruments The Business of Science®
Slide 13: Profit Bridge
Oxford Instruments Profit Bridge 3.6 18 0.4 16 1.6 14 2.7 11.1 12 (5.8) 9.5 (0.9) 10 £'M 8 6 4 2 0 20 A Vo 20 Fx Ef O In cq ve te f 07 08 l /M um re /D rh / / 08 09 ix s is ea e t sd © Oxford Instruments The Business of Science®
Slide 14: Cash Flow
Oxford Instruments Cash Flow 25 1.4 (3.4) 20.3 (6.4) 20 15 (2.6) (1.9) 10 (4.1) (1.0) £M 5 (2.5) 0 -5 -10 (10.3) (10.5) -15 EB WC Ca R& Int Pe Di Ac Re FX Mo IT D p ex D ,T n sio vi de q/D str ve A ax n n is uc me & d tur n Sh ing t a res © Oxford Instruments The Business of Science®
Slide 15: Effect of Exchange Rate on Debt
Oxford Instruments Effect of Exchange Rate on Debt 35.0 2.5 30.0 2 25.0 1.5 Debt £'M 20.0 US$/£ Debt £M US$ 15.0 1 10.0 0.5 5.0 - 0 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar © Oxford Instruments The Business of Science®
Slide 16: Sales by Destination
Oxford Instruments Sales by Destination 2007/08 2008/09 RoW, 5% RoW, 3% Asia, 30% Europe, 37% Europe, 39% Asia, 29% North America, North Am erica, 27% 31% © Oxford Instruments The Business of Science®
Slide 17: Orders
Oxford Instruments Orders 210.0 Sales Orders Orderbook 200.0 190.0 up 29% to 180.0 £66m 170.0 £'M 160.0 150.0 140.0 130.0 120.0 2007/08 2008/09 © Oxford Instruments The Business of Science®
Slide 18: Annual Sales - Reported
Oxford Instruments Annual Sales - Reported Absolute Growth - 54% Compound Growth - 16% 206.5 220.0 200.0 176.5 180.0 161.6 160.0 134.0 £'M 140.0 120.0 100.0 80.0 2005/06 2006/07 2007/08 2008/09 © Oxford Instruments The Business of Science®
Slide 19: Annual Sales – Constant Currency
Oxford Instruments Annual Sales – Constant Currency Absolute Growth - 37% 200.0 Compound Growth - 11% 187.9 183.6 180.0 169.0 160.0 134.0 £'M 140.0 120.0 100.0 80.0 2005/06 2006/07 2007/08 2008/09 © Oxford Instruments The Business of Science®
Slide 20: Annual Trading Profit
Oxford Instruments Annual Trading Profit Absolute Growth - 198% 13.1 14.0 Compound Growth - 44% 12.0 10.6 10.0 8.3 8.0 £'M 4.4 6.0 4.0 2.0 0.0 2005/06 2006/07 2007/08 2008/09 © Oxford Instruments The Business of Science®
Slide 21: Exceptionals
Oxford Instruments Exceptionals £m Profit Cash Cash 2008/09 2008/09 2009/10 Disposal of ODL 3.4 3.1 0.6 Arkex impairment (0.5) 0.0 0.0 Disposal of MBE (1.0) 0.3 0.0 Restructuring (8.7) (2.5) (3.0) Total (6.8) 0.9 (2.4) © Oxford Instruments The Business of Science®
Slide 22: Operational Review
Oxford Instruments Operational Review Jonathan Flint Chief Executive © Oxford Instruments The Business of Science®
Slide 23: Structure
Oxford Instruments Structure Oxford Instruments plc Analytical Superconductivity Cryogenic systems Industrial Instruments for elemental Nano Superconducting analysis, metals identification & Analysis coating thickness measurement Science magnets Small X-ray tube manufacture Superconducting OST wire
Slide 24: Future Structure
Oxford Instruments Future Structure Oxford Instruments plc Nanotechnology Industrial Industrial Service © Oxford Instruments The Business of Science®
Slide 25: Future Segmental Reporting
Oxford Instruments Future Segmental Reporting Sector Current Key Success Factors Key Technologies Businesses Nanotechnology NanoAnalysis Advanced Technology Plasma etch & deposition NanoScience Radical Innovation Cryogenics Plasma Technology Close technical contact with X-ray detection customers Sup
Slide 26: Industrial Analysis
Oxford Instruments Industrial Analysis - Tools for Quality Control and Compliance Testing • New applications e.g. Strontium pollution monitoring • Successful launch of new product for Iron and Steel industry • Simplified and restructured Corroded Air Conditioning system due to Chinese Dry Wall – ima
Slide 27: NanoAnalysis
Oxford Instruments NanoAnalysis - Microanalysis systems for chemical and structural materials analysis • Launch of unique X-MAX analyser exceeded expectations • EBSD market continues to grow with significant potential in photovoltaic applications • Strong orders for the new table top electron micros
Slide 28: Plasma Technology
Oxford Instruments Plasma Technology - Tools for specialist nanotechnology applications DLC artificial heart Courtesy of Ventracor • Strong performance • New applications e.g. deposition of Diamond Like Carbon • Expanding markets for HBLEDs • Growth in photovoltaics © Oxford Instruments The Business
Slide 29: NanoScience
Oxford Instruments NanoScience - Superconducting magnets and cryogenic systems • Accelerated adoption of ‘dry’ technology • Three world first cryogenic systems for fundamental physics research • Restructured business performing well © Oxford Instruments The Business of Science®
Slide 30: Superconducting Technology (OST)
Oxford Instruments Superconducting Technology (OST) Leading producer of superconducting wire • Growth in market share for MRI wire • New orders for specialist high performing wire • ITER © Oxford Instruments The Business of Science®
Slide 31: Summary and Outlook
Oxford Instruments Summary and Outlook • Growth to date in line with plan • Industrial markets weak • R&D markets resilient • Unlikely to see growth in the current year • Continued progress on margin improvement • Well positioned to benefit from future strengthening of the market © Oxford Instrument