Oxford Instruments Plc · LSE:OXIG
Oxford Instruments — H1 2013/14 Earnings Presentation
26 slides from Oxford Instruments's earnings presentation, Nov 12, 2013
Slide 1: Half Year Results Announcement
Half Year Results Announcement 12 November 2013 The Business of Science® Jonathan Flint – Chief Executive Kevin Boyd – Group Finance Director © Oxford Instruments 2013
Slide 2: Agenda
Agenda The Business of Science® • Highlights • Financial Review • Operational Review • Strategy • Outlook © Oxford Instruments 2013
Slide 3: Highlights
Highlights The Business of Science® • Marked improvement in second quarter trading • Order run rate ahead in Europe and Asia • Improving trend in US markets • Increased R&D spend • Acquisition programme on track © Oxford Instruments 2013
Slide 4: Financial Review
The Business of Science® Financial Review Kevin Boyd © Oxford Instruments 2013
Slide 5: Financial Summary
Financial Summary The Business of Science® 2013/14 2012/13 Change Orders (£m) 168.0 169.8 -1.1% Revenues (£m) 166.3 170.8 -2.6% Gross margin (%) 45.0% 44.6% +40bps Adjusted operating profit (£m)* 22.0 23.6 -6.8% Return on sales (%) 13.2% 13.8% -60bps Adjusted profit before tax (£m)* 20.6 22.5 -8.4%
Slide 6: Sector Split
Sector Split The Business of Science® NanoTechnology Industrial Service Total* Tools Products £m 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 Sector revenue 77.1 80.9 58.0 61.5 32.3 29.3 166.3 170.8 Operating profit 7.4 10.3 8.1 7.5 6.5 5.8 22.0 23.6 Return on sales 9.6% 12.7% 14.
Slide 7: Orders by Segment by Quarter (£m)
Orders by Segment by Quarter (£m) The Business of Science® 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 .0 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Nanotechnology Tools Industrial Products Service Group © Oxford Instruments 2013
Slide 8: Sales Bridge
Sales Bridge The Business of Science® 170.8 (7.6) (6.0) 7.3 166.3 1.8 180.0 160.0 140.0 120.0 100.0 £m 80.0 60.0 40.0 20.0 - 2012/13 Vol ITER/GTAT Fx M&A 2013/14 © Oxford Instruments 2013
Slide 9: Sales by Destination
Sales by Destination The Business of Science® H1 2013/14 H1 2012/13 3% 2% 38% 33% 33% 36% 28% 27% Europe N America Asia RoW Europe N America Asia RoW © Oxford Instruments 2013
Slide 10: Profit Bridge
Profit Bridge The Business of Science® 25.0 22.5 (3.4) 5.2 0.5 20.6 (2.4) 20.0 (1.5) (0.3) 15.0 £m 10.0 5.0 0.0 © Oxford Instruments 2013
Slide 11: Cash
Cash The Business of Science® 26.1 (20.8) 70.0 60.0 (2.4) 50.0 (2.4) 39.2 (2.4) (3.0) (0.4) (1.7) 40.0 32.2 £m 30.0 20.0 10.0 0.0 © Oxford Instruments 2013
Slide 12: Revenue & Margin Progression
Revenue & Margin Progression The Business of Science® £m 200.0 16.0% 180.0 14.0% Revenue EBIT% 160.0 Revenue CAGR 13.4% 12.0% 140.0 10.0% 120.0 8.0% 100.0 6.0% 80.0 4.0% 60.0 2.0% 40.0 20.0 0.0% 0.0 -2.0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2006 2006 2007 2007 2008 2008 2009 2009 2010
Slide 13: Operational Review
The Business of Science® Operational Review Jonathan Flint © Oxford Instruments 2013
Slide 14: Our Businesses
Our Businesses The Business of Science® Nanotechnology Tools Industrial Products Service High-performance Analytical instruments Service, support, technology products and high technology training, refurb, components consumables, accessories • NanoAnalysis • Industrial Analysis • OiService CT & MR •
Slide 15: RMG Technology
RMG Technology The Business of Science® Laser Induced Breakdown Technology Spectroscopy (LIBS) Acquisition strategy Bolt-on for Industrial Analysis Ultra fast, lightweight hand-held Product metal analyser Market Scrap and Recycling • Integrate into Industrial Analysis for operational efficiency • Ex
Slide 16: NanoTechnology Tools
NanoTechnology Tools High-performance technology products for research and industry The Business of Science® • Large scale nanofabrication system delivered to Jülich University • Centre of Excellence for two dimensional materials established • New microanalysis detectors and software launched for an
Slide 17: Industrial Products
Industrial Products Analytical instruments and high technology components The Business of Science® • PMI-MASTER Smart: world’s first portable optical emission spectrometer launched worldwide for metals analysis, particularly for use in hard to reach, inaccessible locations • PULSAR: magnetic resonan
Slide 18: Service
Service Service, support, training, refurb, consumables, accessories The Business of Science® • Growing installed base • Increased orders and sales for service contracts and spares • Investment in international service capability • New opportunities for CT & MR Service in US medical and veterinary m
Slide 19: 14 Cubed Update
14 Cubed Update The Business of Science® Objective Achieve a 14% Return on Sales by April 2014 Status • 14% achieved a year early • First half of FY13/14 delivered 13.2% Objective Achieve a 14% Revenue CAGR 2011-14 Status • 15.6% CAGR achieved 2011-13 • CAGR to date 13.7% © Oxford Instruments 2013
Slide 20: Strategy
Strategy The Business of Science® Nanotechnology Industrial Products Service Tools Academic Applied Low Volume In-line/Auto Area Technique Aftermarket Research Research Industrial Industrial Fabrication Nano- Compound Semi Plasma Technology DSE Service XRF OES Industrial MRI Superconductors Products
Slide 21: Strategy
Strategy The Business of Science® Nanotechnology Industrial Products Service Tools Academic Applied Low Volume In-line/Auto Area Technique Aftermarket Research Research Industrial Industrial Fabrication Nano- Compound Semi DSE Plasma Technology Service XRF OES/LIBS Industrial MRI Superconductors Pro
Slide 22: Strategy – Next Steps
Strategy – Next Steps … The Business of Science® Nanotechnology Industrial Products Service Tools Academic Applied Low Volume In-line/Auto Area Technique Aftermarket Research Research Industrial Industrial Fabrication Nano- Compound Semi Plasma Technology DSE Service XRF OES/LIBS Industrial MRI Supe
Slide 23: Andor Opportunity
Andor Opportunity The Business of Science® Nanotechnology Industrial Products Service Tools Academic Applied Low Volume In-line/Auto Area Technique Aftermarket Research Research Industrial Industrial Fabrication Nano- Compound Semi Plasma Technology DSE XRF OES/LIBS Industrial Service MRI Supercondu
Slide 24: Andor
Andor The Business of Science® • Short Term • Research market benefits Omicron Industrial • Grow Asia market NanoScience Products • Grow optical systems business Optistat Optical Emission Photonics Spectroscopy • Longer Term Andor • Grow system and software capability Hybrid Hybrid • Combined produc
Slide 25: Outlook
Outlook The Business of Science® • Order run rate ahead in Europe and Asia • Tentative recovery in US market • Strong new product pipeline • Q2 momentum encouraging for H2 • Acquisition programme on track • Strategy progression into Nano-Bio supports long term growth © Oxford Instruments 2013
Slide 26: Disclaimer
Disclaimer The Business of Science® 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
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