Slide 1: Preliminary results presentation to 31 March 2021
Preliminary results presentation to 31 March 2021 Ian Barkshire Chief Executive Gavin Hill Group Finance Director
Slide 2: Agenda
Agenda Highlights Finance Review Horizon Progress Sustainability Position & Covid Update Operational Review Summary and Outlook Oxford Instruments plc Preliminary Results presentation 2021 2
Slide 3: Highlights
Highlights • Robust performance reflects resilience of business model and strong position in diverse, attractive end markets • Strong order growth across academic and commercial customers reflecting buoyant semiconductor, quantum and advanced materials markets • Horizon initiatives support significa
Slide 4: Finance Review
Finance Review Gavin Hill Oxford Instruments plc Preliminary Results presentation 2021
Slide 5: Income Statement
Income Statement Constant Reported Currency £m 2020/21 2019/20 Change Change Revenue 318.5 317.4 +0.3% +1.7% Adjusted operating profit 56.7 50.5 +12.3% +13.3% Amortisation of acquired intangibles (8.4) (8.7) Non-recurring items (1.7) (0.6) Mark-to-market movement of currency hedges 6.4 (1.4) Statuto
Slide 6: Revenue by Sector
Revenue by Sector Materials & Research & Service & £m Characterisation Discovery Healthcare Total Revenue1 2019/20 145.8 117.8 53.8 317.4 Constant currency growth/(decline) 4.7 (2.4) 3.2 5.5 Revenue at constant currency: 2020/21 150.5 115.4 57.0 322.9 Foreign exchange (1.9) (2.0) (0.5) (4.4) Revenue
Slide 7: Revenue by Territory: £m
Revenue by Territory: £m Europe North America Asia RoW Group Revenue % 27% 24% 47% 2% 150.2 136.6 87.2 89.5 84.9 76.7 6.4 4.4 2019/20 2020/21 2019/20 2020/21 2019/20 2020/21 2019/20 2020/21 Reported growth 2.7% (14.3%) 10.0% (31.2%) Constant currency growth 1.2% (10.8%) 11.9% (31.3%) Orders: reporte
Slide 8: Order Book: £m
Order Book: £m 96.5 96.1 74.7 53.4 25.1 27.4 2019/20 2020/21 2019/20 2020/21 2019/20 2020/21 Materials & Research & Service & Characterisation Discovery Healthcare Total Reported growth +39.9% (0.4%) +9.2% +13.2% Constant currency growth +47.2% +1.6% 17.5% +17.8% Oxford Instruments plc Preliminary R
Slide 9: Adjusted Operating Profit by Sector
Adjusted Operating Profit by Sector Materials & Research & Service & £m Characterisation Discovery Healthcare Total Adjusted operating profit1: 2019/20 21.0 14.5 15.0 50.5 Constant currency growth/(decline) (0.4) 4.9 2.2 6.7 Adjusted operating profit: constant currency: 2020/21 20.6 19.4 17.2 57.2 F
Slide 10: Cash Flow
Cash Flow Pensions: Accounting asset: £16.3m (£2.7m) (£0.9m) (31 March 2020: £30.7m) (£4.0m) (£2.8m) (£1.6m) Working Capital (£6.3m) £97.6m Outflow: £2.1m (2020: inflow of £10.1m) (£15.5m) £-m (£1.9m) Effective tax rate £67.5m 19.3% (2020: 18.8%) £65.8m Capex Capex in 2021/22 to include c.£20m of co
Slide 11: Currency Exposure
Currency Exposure 160 145.0 120 80 68.4 61.5 64.1 36.8 37.9 £m equivalent 40 21.9 4.8 2.7 0.9 0.5 0 (40) (69.3) (80) Sterling US Dollar Euro Japanese Yen Chinese Renminbi Other Revenue Adjusted operating profit Oxford Instruments plc Preliminary Results presentation 2021 11
Slide 12: FX Sensitivity
FX Sensitivity • Adverse currency impact in Full Year 2020/21: AOP: (£0.5m) • Estimated Full Year 2021/22 currency impact – Assuming current hedges and no change from current rates, currency sensitivity against FY 2020/21: Revenue: (£18.5m); AOP: (£2.5m) • Estimated Full Year 2022/23 currency impact
Slide 13: Finance Summary
Finance Summary • Strong growth in orders and order book • Adjusted operating margin lifted to 17.8% with good improvement across the portfolio, complemented by strong operating cash conversion of 101%. • Additional pension contribution of £8.1m. Further de-risking of the scheme to achieve planned s
Slide 14: Operations Review
Operations Review Ian Barkshire Oxford Instruments plc Preliminary Results presentation 2021
Slide 15: Horizon Strategy Progress
Horizon Strategy Progress • Horizon has provided resilience, enabling growth and improved profitability through the pandemic • Tangible financial gains across the Group through: – Optimised sales and marketing approach, further exploiting our market intimacy – Improved commercial processes – Progres
Slide 16: Shaping a sustainable future
Shaping a sustainable future • Positively influencing and shaping a sustainable future is at the heart of our values, culture and purpose • Through our purpose we focus on enabling: – A greener economy – Increased connectivity – Improved health – Leaps in scientific understanding • Continued progres
Slide 17: Covid Update
Covid Update • Prioritised health and wellbeing of employees and supporting customers and strategic partners • Hybrid workplace model maintained business continuity • Evolved working practices delivered: – Improved quarter on quarter operational output – Increased synergies across the Group – Enhanc
Slide 18: Group Performance
Group Performance Academic: 55% Commercial: 45% Materials & Research & Discovery Service & Healthcare Characterisation • Good constant currency order growth of 6.7% to £359m across both commercial and academic customers • Revenue growth with momentum building through the year • Double digit growth i
Slide 19: Group Performance – End Markets
Group Performance – End Markets • Broad and diverse range of attractive end markets with robust long term growth drivers 8% 22% • Order growth supported by buoyant 23% semiconductor (+17%), quantum (+16%) % of and advanced materials (+8%) markets Revenue • Research & Fundamental Science (-24%) 8% 28
Slide 20: Materials & Characterisation
47% Group revenue Materials & Characterisation Academic: 44% Commercial: 56% Asylum Research; Magnetic Resonance; NanoAnalysis; Plasma Technology Enabling the fabrication and characterisation of materials and devices down to the atomic scale • Double digit order growth from both academic 6% and comm
Slide 21: Materials & Characterisation Growth Examples
Materials & Characterisation Growth Examples Semiconductor & Communications Global Market Drivers • Buoyant compound semiconductor market Power Electronics Connectivity Communications - strong growth in etch and deposition systems • Investment in new facility • Strong semiconductor chip market drivi
Slide 22: Materials & Characterisation Growth Examples: Advanced Materials
Materials & Characterisation Growth Examples Advanced Materials • Continued demand for lighter, stronger, higher performing materials - building blocks of modern society Utilisation of Advanced Materials • Strong order growth across diverse applications including steel, super alloys and polymers off
Slide 23: Research & Discovery
35% Group revenue Research & Discovery Academic: 74% Commercial: 26% Andor Technology; NanoScience; X-Ray Technology Advanced solutions that create unique environments and enable measurements down to the molecular and atomic level • Significant covid disruption in first half more than 21% offset sec
Slide 24: Research & Discovery Growth Examples
Research & Discovery Growth Examples Global Market Drivers Healthcare & Lifescience Cell Biology Personalised Neuroscience Immunology • Long term fundamental market Medicine drivers remain robust • Year on year second half growth offset by first half disruption • Uplift in covid diagnostics, virus m
Slide 25: Research & Discovery Growth Examples: Quantum Technology
Research & Discovery Growth Examples Global Market Drivers Quantum Technology Secure Quantum • Strong order & revenue growth as Quantum Quantum Communication Sensors Computing Imaging timeline for practical applications accelerates • Growth supported by governments & commercial customers • Quantum a
Slide 26: Service & Healthcare
Service & Healthcare 18% Group revenue Provides customer service and support for our own products and the service and support of third party MRI scanners in Japan • Increased demand and tailored product offerings supported order and revenue growth • Improved profitability and enhanced margins Remote
Slide 27: Summary & Outlook
Summary & Outlook • Strong order growth, revenue impacted by covid disruptions • Enhanced profit and margins through Horizon initiatives • Performance reflects agility and engagement of employees • Robust performance, strong order book and diversified end markets demonstrate resilience of business m
Slide 28: Thank you
Thank you
Slide 29: 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
Slide 30: Positioned in diverse, attractive end markets with clear drivers
Positioned in diverse, attractive end markets with clear drivers Well positioned in globally niche markets with long-term growth drivers where we can maintain leading positions: Semiconductor & Communications: The push for more power-efficient devices, increased connectivity and the increased demand