Oxford Instruments Plc · LSE:OXIG
Oxford Instruments — H1 FY2022 Earnings Presentation
28 slides from Oxford Instruments's earnings presentation, Sep 30, 2021
Slide 1: Half Year results presentation
Half Year results presentation to 30 September 2021 Ian Barkshire Chief Executive Gavin Hill Group Finance Director
Slide 2: Agenda
Agenda Highlights Finance Review Strategic Progress Sustainability Update Operational Review Summary and Outlook Oxford Instruments plc Half Year Results presentation 2021 2
Slide 3: Highlights
Highlights • Strong financial performance reflecting leading position in attractive, structural growth markets • Buoyant semiconductor, advanced materials and quantum markets, and recovery in life science • Double digit order growth from commercial and academic customers, and in Europe, North Americ
Slide 4: Finance Review
Finance Review Gavin Hill Oxford Instruments plc Half Year Results presentation 2021
Slide 5: Income Statement
Income Statement Organic CC Reported Organic CC Change vs £m 2021/22 2020/21 Change Change 2019/20 Revenue 170.1 140.3 +21.2% +26.8% +13.5% Adjusted operating profit 30.6 24.3 +25.9% +28.0% +17.6% Amortisation of acquired intangibles (3.8) (4.3) Non-recurring items (1.2) - Mark-to-market of currency
Slide 6: Revenue by Sector
Revenue by Sector £170.1m +21.2%2 reported +26.8%2 organic CC Acquisitions Service & +1.3%2 Currency Research & Healthcare £140.3m (6.8)%2 Discovery +15.3%1 +23.2%1 Materials & Characterisation +34.2%1 HY 20/21 HY 21/22 1 Organic constant currency (CC) growth rate compared to prior year sector reven
Slide 7: Revenue and Orders by Region
Revenue and Orders by Region Revenue RoW Order growth reported - constant currency +19% Europe reported +16% Europe constant currency +20% 2% reported (3)% 23% constant currency (1)% North America reported +6% constant currency +15% £170.1m Asia 51% reported +17% constant currency +25% 24% RoW repor
Slide 8: Order Book by Sector
Order Book by Sector Service & £231.6m Materials & Research & Healthcare Characterisation Discovery +13.2%2 reported £33.6m +13.3%2 organic CC £99.3m £98.7m +33.8%1 +25.9%1 (1.5)%1 £204.6m HY 20/21 HY 21/22 1 Organic constant currency (CC) growth rate compared to prior year sector revenue 2 Growth r
Slide 9: Adjusted Operating Profit by Sector
Adjusted Operating Profit by Sector £30.6m +25.9%2 reported +28.0%2 organic CC Service & Acquisitions Currency Material & Healthcare +0.8%2 (2.9)%2 +4.4% 1 Characterisation Research & £24.3m Discovery margin HY21: 15.3% +40.6%1 margin HY20: 13.7% Materials & Characterisation Research & Discovery +42
Slide 10: Cash Flow
Cash Flow Cash conversion Adj effective tax 48% rate1 HY20: 97% 21.5% Working capital HY20: 20.7% Lease Pension asset Working capital payments Tax outflow £25.0m £14.2m Capex & Acquisitions FY21: £16.3m HY20: £3.0m capitalised Pensions development outflow EBITDA costs Acquisitions £30.0m HY20: - Cap
Slide 11: Currency Exposure
Currency Exposure Revenue (£m equivalent) Adjusted Operating Profit (£m equivalent) Sterling £45m Sterling £(14)m US Dollar £78m US Dollar £22m Euro £29m Euro £14m Japanese Yen £15m Japanese Yen £8m Chinese £2m Renminbi Chinese Renminbi £0m Other £0m Other £(1)m Oxford Instruments plc Half Year Resu
Slide 12: FX Sensitivity
FX Sensitivity • Adverse currency impact in HY21: Revenue: (£9.6m) ; AOP: (£0.7m) • Estimated Full Year 2021/22 currency impact – Assuming current hedges and no change from current spot rates, currency sensitivity vs FY21: Revenue: (£17.0m); AOP: (£1.8m) • Estimated Full Year 2022/23 currency impact
Slide 13: Finance Summary
Finance Summary • Strong growth in orders and order book with a book-to-bill of 117%. Supply chain disruptions and export licence delays will affect the timing of order conversion to revenue • Continued investment to support future growth and an uplift in adjusted operating margin to 18% • Adjusted
Slide 14: Operations Review
Operations Review Ian Barkshire Oxford Instruments plc Half Year Results presentation 2021
Slide 15: Horizon Strategy Progress
Horizon Strategy Progress • Horizon progress underpinned strong financial performance • Creating value by exploiting synergies across the Group • Heightened focus on, and intimacy with, attractive end markets with positive long-term structural growth drivers • Increased investment in product develop
Slide 16: Shaping a sustainable future
Shaping a sustainable future • Our purpose to enable a greener, healthier, more connected advanced society puts us at the heart of global sustainability initiatives • Our greatest contribution to net zero is through enabling new technologies • Executing on our sustainability agenda – Reducing our ma
Slide 17: Group Performance
Group Performance Academic: 50% Commercial: 50% Materials & Research & Discovery Service & Healthcare Characterisation • Strong year-on-year constant currency order, revenue and profit growth, with strong progress relative to 2019 • Significant order growth to commercial customers in line with our s
Slide 18: Group Performance – End Markets
Group Performance – End Markets • Broad range of attractive end markets with robust structural growth drivers 5% 19% • Order and revenue growth supported by buoyant semiconductor, quantum and 30% advanced materials markets % of Revenue • Strong recovery from life science market, 31% orders ahead of
Slide 19: Materials & Characterisation
50% Group revenue Materials & Characterisation Academic: 39% Commercial: 61% Asylum Research; Magnetic Resonance; NanoAnalysis; Plasma Technology; WITec Enabling the fabrication and characterisation of materials and devices down to the atomic scale • Double digit order and revenue growth; up on 2019
Slide 20: Materials & Characterisation Growth Examples
Materials & Characterisation Growth Examples Semiconductor & Communications Global Market Drivers • Structural growth drivers - higher performing Power Connectivity Communications and energy efficient solutions Electronics • Increasing demand for our compound semiconductor processing systems • Stron
Slide 21: Materials & Characterisation Growth Examples
Materials & Characterisation Growth Examples Advanced Materials • Imaging and analysis solutions allow customers to develop and manufacture higher performing materials Structural analysis of super alloys • Market intimacy enabling tailored solutions and new opportunities • Increasing customers’ capa
Slide 22: Research & Discovery
33% Group revenue Research & Discovery Academic: 71% Commercial: 29% Andor Technology; NanoScience; X-Ray Technology Advanced solutions that create unique environments and enable measurements down to the molecular and atomic level • Robust end markets driving strong order and 14% revenue growth, ahe
Slide 23: Research & Discovery Growth Examples
Research & Discovery Growth Examples Global Market Drivers Healthcare & Lifescience Personalised • Growth drivers due to ageing Cell Biology Neuroscience Immunology Medicine population and cost effective healthcare remain robust • Customer facilities reopening • Double digit order & revenue growth d
Slide 24: Research & Discovery Growth Examples
Research & Discovery Growth Examples Quantum Technology Global Market Drivers Secure Quantum • Transitioning from fundamental Quantum Quantum Communication Sensors Computing Imaging research to applied R&D and commercial applications • Strong order & revenue growth supported by governments and incre
Slide 25: Service & Healthcare
Service & Healthcare 17% Group revenue Provides customer service and support for our own products and the service and support of third party MRI scanners in Japan • Continued progress in our service transformation • Increased demand and tailored product offerings supported order and revenue growth f
Slide 26: Summary & Outlook
Summary & Outlook • Strong order and revenue growth in year, with growth on first half 2019 • Strong growth in operating profit with margin rising to 18% • Emerged from pandemic a stronger, more focused and efficient business, even more aligned with our customers’ needs • Increased investment to sup
Slide 27: Thank you
Thank you
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