Slide 1: Half Year Results Presentation to 30th September 2018
Half Year Results Presentation to 30th September 2018 Ian Barkshire Chief Executive Gavin Hill Group Finance Director Oxford Instruments plc Half Year results presentation 2018
Slide 2: Agenda
Agenda 01: Highlights 02: Finance Review 03: Horizon Update 04: Operational Review 05: Summary and Outlook Oxford Instruments plc Half Year results presentation 2018 2
Slide 3: Highlights
Highlights • Horizon well embedded across the Group • Strong growth in orders and order book • Focused investment in sales, service and • Strong growth in Materials & Characterisation operations • Improved financial performance in Research & • End markets remain positive and robust Discovery • Posit
Slide 4: Finance Review
Finance Review Gavin Hill Oxford Instruments plc Half Year results presentation 2018
Slide 5: Income Statement
Income Statement Constant Reported Currency £m 2018/19 2017/18 Change Change Revenue 147.0 132.1 +11.3% +12.6% Adjusted operating profit 21.0 18.8 +11.7% +16.0% Net finance costs (1.2) (2.5) Adjusted profit before tax 19.8 16.3 +21.5% +26.4% Amortisation of acquired intangibles (4.7) (5.6) Non-recur
Slide 6: Revenue by Sector
Revenue by Sector Materials & Research & Service & £m Characterisation Discovery Healthcare Total* 2017/18 50.1 47.9 34.1 132.1 Underlying movement 10.6 7.0 (1.0) 16.6 FX (0.6) (0.6) (0.5) (1.7) 2018/19 60.1 54.3 32.6 147.0 Growth Reported +20.0% +13.4% (4.4%) +11.3% Constant currency +21.2% +14.6%
Slide 7: Revenue by Territory
Revenue by Territory: £m Europe North America Asia RoW Group Revenue % 25% 32% 41% 2% 60.8 51.8 45.7 47.2 37.0 33.4 1.2 2.0 2017/18 2018/19 2017/18 2018/19 2017/18 2018/19 2017/18 2018/19 Reported growth +10.8% +3.3% +17.4% +66.7% Constant currency growth +10.8% +5.3% +18.9% +66.7% Orders: reported
Slide 8: Order Book
Order Book: £m 83.5 78.0 47.5 46.9 40.8 34.2 2017/18 2018/19 2017/18 2018/19 2017/18 2018/19 Materials & Characterisation Research & Discovery Service & Healthcare Total Reported growth +38.9% +7.1% +15.0% +16.3% Constant currency growth +33.3% +5.0% +9.3% +12.5% Oxford Instruments plc Half Year res
Slide 9: Adjusted Operating Profit by Sector
Adjusted Operating Profit by Sector Materials & Research & Service & £m Characterisation Discovery Healthcare Total 2017/18 7.2 4.2 7.4 18.8 Underlying movement 2.8 1.0 (0.8) 3.0 FX (0.3) (0.4) (0.1) (0.8) 2018/19 9.7 4.8 6.5 21.0 EBIT Margin 2017/18 14.4% 8.8% 21.7% 14.2% 2018/19 16.1% 8.8% 19.9% 1
Slide 10: Cash Flow and Net Debt
Cash Flow 30 Working Capital Pensions: 20 Outflow: £1.2m (2017/18: £15.0m) Deficit: £9.9m (31 March 18: £15.3m) Effective tax rate 21.2% (2017/18: 22.1%) 10 Cash/(Debt): £m - (10) Net debt 30 Working Capitalised Sept 18 EBITDA Capital Development Capex Interest Dividend Tax Pensions Other (20) Net D
Slide 11: Currency Exposure
Currency Exposure 120 79.0 60 £m equivalent 26.4 28.2 23.2 15.6 14.3 7.9 2.4 0 (0.3) (28.6) (60) Sterling US Dollar Euro Japanese Yen Other Sales Adjusted operating profit Oxford Instruments plc Half Year results presentation 2018 11
Slide 12: Finance Summary
Finance Summary • Good growth in orders and order book at reported and constant currency • Adjusted operating margin up 10 basis points to 14.3% • Continuing adjusted basic earnings per share up 22.4% • Strong cash conversion of 91% and net debt down to £12.5m • Refinancing completed in July 2018 wi
Slide 13: Horizon Update & Operations Review
Horizon Update & Operations Review Ian Barkshire Oxford Instruments plc Half Year results presentation 2018
Slide 14: Horizon Progress
Horizon Progress • Good progress with the implementation of Horizon –Translating into positive results • Continue to embed sharper commercial focus and increased capabilities across sales, marketing and operations • Increased market and customer application focus –Chosen markets remain positive & ro
Slide 15: Group Performance
Group Performance Academic: 47%; Commercial: 53% Materials & Characterisation Research & Discovery Service & Healthcare • Good growth in underlying orders, revenue and operating profit • Revenue growth from commercial & industrial customers to 53% (2017: 45%) • Order book growth for all reporting se
Slide 16: Group Performance – End Markets
Group Performance – End Markets Academic: 47%; Commercial: 53% • Broad customer base across a wide range of 7% applications and end markets 28% 24% • Strong revenue growth in Advanced Materials, Healthcare & Life Science and Quantum 5% Technologies 5% 21% 10% • Semiconductor & Communications revenue
Slide 17: Materials & Characterisation
Materials & Characterisation 41% Group revenue Academic: 42%; Commercial: 58% NanoAnalysis; Asylum Research; Plasma Technology Enabling the fabrication and characterisation of materials and devices down to the atomic scale • Double digit growth in orders, revenue and 6% profitability 39% • Growth an
Slide 18: Materials & Characterisation – Growth Examples
Materials & Characterisation – Growth Examples Academic: 42%;41%Commercial: Group revenue 58% Advanced Materials • Continued success from Symmetry™, Ultim™ and AFM platforms Identification and characterisation of contaminants • Delivering increased capability and productivity for in the metal powder
Slide 19: Materials & Characterisation – Growth Examples
Materials & Characterisation – Growth Examples Academic: 42%;41%Commercial: Group revenue 58% Semiconductors & Communications Global Market Drivers • Core capabilities and strong growth within Applied R&D NANO Discrete Optoelectronic compound semiconductor applications as we enter “the decade of mat
Slide 20: Research & Discovery
Research & Discovery 37% Group revenue Academic: 65%; Commercial: 35% Andor Technology; NanoScience & Magnetic Resonance; X-ray Technology; Scienta Omicron Advanced solutions that create unique environments and enable measurements down to the molecular and atomic level • Improved orders, revenue and
Slide 21: Research & Discovery
Research & Discovery 37% Group revenue Academic: 65%; Commercial: 35% • Improved performance from Andor Technology • NanoScience transition progressing well • Markets for benchtop NMR analysers remains positive • Increased orders for scientific X-ray tubes, delayed shipments impacted revenue and pro
Slide 22: Research & Discovery – Growth Examples
Research & Discovery – Growth Examples 37% Group revenue Academic: 65%; Commercial: 35% Scientific Cameras Global Market Drivers • Built on market and technical leadership in Cell Biology Personalised Medicine Astronomy Physical Science & Quantum scientific cameras • New application specific cameras
Slide 23: Research & Discovery – Growth Examples
Research & Discovery – Growth Examples 37% Group revenue Academic: 65%; Commercial: 35% Quantum Technologies Global Market Drivers • Continued investment by large corporates, Quantum Secure Quantum Quantum increased academic funding from EU, US Computing Communications Sensors Imaging and China gove
Slide 24: Research & Discovery – Growth Examples
Research & Discovery – Growth Examples 37% Group revenue Academic: 65%; Commercial: 35% Research & Fundamental Sciences • Remains attractive growth segment • Customers exploring new frontiers predominantly for physical sciences • A broad range of standard as well as bespoke platforms, solutions and
Slide 25: Service & Healthcare
Service & Healthcare 22% Group revenue OiService; OI Healthcare Provides customer service and support for our own products and the service, sale and rental of third party healthcare imaging systems • Revenue decline but double digit order and order book growth OiService • Increased demand for servic
Slide 26: Summary & Outlook
Summary & Outlook • Continued progress with the implementation of our Horizon strategy • End markets and underlying drivers remain positive, with strong growth from commercial and industrial customers • Good financial performance in the first half • Expectations for the current financial year remain
Slide 27: Questions
Questions Oxford Instruments plc Half Year results presentation 2018 27
Slide 28: Disclaimer
Disclaimer This presentation is prepared for and addressed to authorised persons within the meaning of the Financial Services and Markets Act 2000 (FSMA). The information contained in this presentation is not for publication, distribution or reproduction, in whole or in part, to any persons outside