Slide 1: Preliminary results presentation
Preliminary results presentation to 31 March 2022 Ian Barkshire Chief Executive Gavin Hill Group Finance Director
Slide 2: Agenda
Agenda Highlights Horizon Strategy & Progress Group Performance – End Markets Finance Review End Market Overview Sustainability Update Summary & Outlook Oxford Instruments plc Preliminary Results presentation 2022 2
Slide 3: Highlights
Highlights • Strong financial performance reflecting resilience of our business model and strength of our end markets • Significant order, revenue and profit growth despite challenging operational backdrop; sustained progress over last two years • Strategic progress supporting margin enhancement, wh
Slide 4: Strategy for Sustainable Growth
Strategy for Sustainable Growth Leading technologies which create high customer value • Leading provider of high technology products and services to the world’s foremost industrial companies & scientific research communities • Unrivalled products for imaging, analysing & manipulating materials down
Slide 5: Horizon Strategy Progress
Horizon Strategy Progress Market Heightened market intimacy driving strong growth to Intimacy existing customers and expansion to adjacent markets Innovation & New products delivering sustainable differentiation & Product Development growth into larger commercial markets Operational Operational exce
Slide 6: Group Performance – End Markets
Group Performance – End Markets (18%) * • Market intimacy in positive end markets +10%* driving significant order growth +26%* • Strong growth in semiconductor, quantum and advanced materials markets % of Revenue • Strong recovery from Healthcare & Lifescience and Energy & Environment after +25%* su
Slide 7: Finance Review
Finance Review Gavin Hill Oxford Instruments plc Preliminary Results presentation 2022
Slide 8: Strong Track Record of Delivery
Strong Track Record of Delivery Revenue Adjusted Profit Before Tax £367m £66m £319m £56m £314m £317m £50m £46m £42m £276m £278m £31m 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Adjusted operating profit margin Return on capital employed 17.8% 18.1% 16.6% 35% 15.9% 33% 15.2% 13.6% 24%
Slide 9: Income Statement
Income Statement Reported Organic CC £m 2021/22 2020/21 Change Change Revenue 367.3 318.5 +15.3% +14.5% Adjusted1 operating profit 66.3 56.7 +16.9% +15.2% Amortisation of acquired intangibles (9.5) (8.4) Non-recurring items (2.1) (1.7) Mark-to-market of currency hedges (6.4) 6.4 Statutory operating
Slide 10: Revenue by Sector
Revenue by Sector £367.3m +15.3%2 reported +14.5%2 organic CC Acquisitions Currency £318.5m Service & +4.7%2 (3.9)%2 Research & Healthcare Discovery +13.5%1 Materials & +9.3%1 Characterisation +18.9%1 FY 20/21 FY 21/22 1 Organic constant currency (CC) growth rate compared to prior year sector revenu
Slide 11: Adjusted Operating Profit by Sector
Adjusted Operating Profit by Sector £66.3m Service & Currency +16.9% 2 reported Acquisitions Research & Healthcare +5.1%2 (3.4)%2 +15.2% 2 organic CC Materials & Discovery +18.9%1 Material & Characterisation +10.8%1 Characterisation +16.3%1 margin FY22: 14.1% £56.7m margin FY21: 13.7% Research & Dis
Slide 12: Materials & Characterisation
50% Group revenue Materials & Characterisation Academic: 43% Commercial: 57% Organic Research & Constant Fundamental 2021/22 2020/21 currency Science Healthcare & £m £m Growth growth +43%* Lifescience 1% +43%* Orders 219.2 175.0 +25.3% +29.8% Revenue 185.5 148.6 +24.8% +18.9% 6% Advanced Adjusted1 o
Slide 13: Research & Discovery
33% Group revenue Research & Discovery Academic: 74% Commercial: 26% Constant 2021/22 2020/21 currency Research & £m £m Growth growth Fundamental Science Orders 133.9 115.7 +15.7% +19.6% (23%) * Healthcare & Lifescience Revenue 120.3 113.4 +6.1% +9.3% +4%* Adjusted1 operating 15% profit 21.3 19.5 +9
Slide 14: Service & Healthcare
Service & Healthcare 17% Group revenue Constant 2021/22 2020/21 currency £m £m Growth growth Orders 70.0 63.0 +11.1% +16.0% Revenue 61.5 56.5 +8.8% +13.5% Adjusted1 operating profit 18.9 16.9 +11.8% +18.9% Adjusted1 operating margin 30.7% 29.9% Augmented Reality Support Key performance highlights •
Slide 15: Revenue and Orders by Region
Revenue and Orders by Region Revenue RoW Order growth reported +9% constant currency +11% Europe reported +19% constant currency +15% Europe 2% reported 2% North America 24% constant currency (2)% reported +21% constant currency +23% Asia £367.3m reported +20% 51% constant currency +22% 23% RoW repo
Slide 16: Order Book by Sector
Order Book by Sector Service & £260m Healthcare +30%2 reported Research & +27%1 +27%2 organic CC Discovery Materials & +12%1 Characterisation +45%1 £198m FY 20/21 FY 21/22 1 Organic constant currency (CC) growth rate compared to prior year sector revenue 2 Growth rate compared to prior year Group to
Slide 17: Cash Flow
Cash Flow Cash conversion Adj effective tax 72% (84%1) rate FY21: 101% 17.8% FY21: 19.3% Working Lease capital payments Working capital Pension asset Capex & outflow capitalised £51.7m £11.8m Tax FY21: £16.3m development Pensions FY21: £2.7m costs outflow Acquisitions £30.6m Adjusted Acquisitions FY
Slide 18: Currency Exposure
Currency Exposure Revenue (£m equivalent) Adjusted Operating Profit (£m equivalent) Sterling £85m Sterling £(57)m US Dollar £163m US Dollar £59m Euro £75m Euro £41m Japanese Yen £22m Japanese Yen £37m Chinese Renminbi £1m Chinese… £6m Other £1m Other £2m Oxford Instruments plc Preliminary Results pr
Slide 19: FX Sensitivity
FX Sensitivity • Adverse currency impact in 2021/22: Revenue: (£12.4m) ; AOP: (£1.9m) • Estimated Full Year 2022/23 currency impact – Assuming current hedges as at 31/03/22 and no change from current forecast rates, approximate currency sensitivity against 2021/22: Revenue: +£5.1m; AOP: (£4.0m) – Th
Slide 20: Finance Summary
Finance Summary • Organic constant currency revenue growth of 15% despite supply chain disruption • Adjusted operating margin lifted to 18.1%, with margin improvement across all sectors • Adjusted EPS growth of 20% and increase in total dividend of 6.5% • Cash conversion of 84% (normalised excl. new
Slide 21: End Market Overview
End Market Overview Ian Barkshire Oxford Instruments plc Preliminary Results presentation 2022
Slide 22: Markets: long term structural Growth drivers
Markets: long term structural Growth drivers Semiconductor & Communications Healthcare & Lifescience • Increased chip demand Advanced Materials • Faster computers & devices • Aging population • Exponential data growth • Building blocks of advanced • Improved treatments & • Universal connectivity soc
Slide 23: Healthcare & Lifescience
Healthcare & Lifescience Personalised Medicine Client needs Oxford Instruments provides • Understand fundamental disease • Highest performance research systems mechanisms • Benchtop systems - unprecedented ease • Analyse efficacy at cellular & molecular of use & accessible price point level to impro
Slide 24: Semiconductor & Communication
Semiconductor & Communication Semiconductor Analysis Client needs Oxford Instruments provides • Faster processors, higher yield per wafer • Highest performing solutions – • Manufacture of smaller & more complex unparalleled spatial resolution, accuracy devices & speed • Nanoscale characterisation •
Slide 25: Semiconductor & Communication
Semiconductor & Communication Power Semiconductors Client needs Oxford Instruments provides • Higher power, capacity & lifetime • Dedicated production and R&D systems • Improved energy efficiency • Proprietary critical layer processes • Manufacturing of complex devices • Ultimate control of composit
Slide 26: Advanced Materials
Advanced Materials Enabling advances in Automotive design and manufacturing Client needs Oxford Instruments provides • Improved vehicle performance • Nanoscale structure & composition • Offsetting battery weight analysis • Enhanced passenger protection • Fastest automated grain analyser • Advanced s
Slide 27: Shaping a sustainable future
Shaping a sustainable future • Sustainability is a cornerstone of our long-term strategy to drive stakeholder value • Our products and services directly support society’s investment in delivering a sustainable future • Executing on our sustainability agenda – Embracing TCFD reporting framework & wid
Slide 28: Summary & Outlook
Summary & Outlook • Strong order and revenue growth in year, with growth on FY 2020 • Strong growth in operating profit, and improved margin despite supply chain and cost headwinds • Emerged from turbulence of last two years a stronger, more focused and efficient business, aligned to attractive, str
Slide 29: Thank you
Thank you
Slide 30: 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 31: Appendix
Appendix ACR ARAN
Slide 32: Investment case
Investment case Confidence in strategy Strong financial position World-class brand reputation Focus on sustainability Access to attractive markets Oxford Instruments plc Preliminary Results presentation 2022 32
Slide 33: The Oxford Instruments Business Model
The Oxford Instruments Business Model Horizon defines the way we operate, embedding clearly defined core capabilities, processes and procedures across our businesses in the following areas: Our core purpose is to support our customers in addressing some of the world’s most pressing challenges. Our k
Slide 34: Semiconductor market drivers
Semiconductor market drivers We offer higher resolution imaging and analysis solutions Improved yield, Computation – lower cost, faster higher processing throughput Miniaturisation Power of silicon Exponential data Electronics growth driving - EVs / Consumer devices development of electronics memory