Oxford Instruments Plc · LSE:OXIG
Oxford Instruments — H1 2019/20 Earnings Presentation
28 slides from Oxford Instruments's earnings presentation, Nov 13, 2019
Slide 1: Half Year Results Presentation
Half Year Results Presentation to 30 September 2019 Ian Barkshire Chief Executive Gavin Hill Biological tissue imaged by Oxford Group Finance Director Instruments microscopy system Oxford Instruments plc Half Year Results Presentation 2019 1
Slide 2: Agenda
Agenda Highlights Finance Review Operational Review Summary and Outlook Oxford Instruments plc Half Year Results Presentation 2019 2
Slide 3: Highlights
Highlights • Good progress with the Horizon • Growth in orders and orderbook strategy despite some softer markets • Strong underlying revenue & • Improved commercial practices and profit growth further supported gains from operational excellence by currency programme • Improvement in underlying • Ap
Slide 4: Finance Review
Finance Review Gavin Hill Oxford Instruments plc Half Year Results Presentation 2019 4
Slide 5: Income Statement
Income Statement Constant Reported Currency £m 2019/20 2018/19 Change Change Revenue 166.3 147.0 +13.1% +9.1% Adjusted operating profit 25.8 21.0 +22.9% +12.4% Net finance costs (0.4) (1.2) Adjusted profit before tax 25.4 19.8 +28.3% Amortisation of acquired intangibles (4.8) (4.7) Non-recurring ite
Slide 6: Revenue by Sector
Revenue by Sector Materials & Research & Service & £m Characterisation Discovery Healthcare Total 2018/19 60.1 54.3 32.6 147.0 Underlying movement 7.4 4.7 1.3 13.4 FX 2.3 2.2 1.4 5.9 2019/20 69.8 61.2 35.3 166.3 Growth Reported +16.1% +12.7% +8.3% +13.1% Constant currency +12.3% +8.7% +4.0% +9.1% Ox
Slide 7: Revenue by Territory
Revenue by Territory: £m Europe North America Asia RoW Group Revenue % 27% 32% 40% 1% 66.2 60.8 53.5 47.2 44.2 37.0 2.0 2.4 2018/19 2019/20 2018/19 2019/20 2018/19 2019/20 2018/19 2019/20 Reported growth +19.5% +13.3% +8.9% +20.0% Constant currency growth +18.4% +7.8% +4.3% +15.0% Orders*: reported
Slide 8: Order Book
Order Book: £m 91.1 93.1 47.1 46.6 41.2 39.3 2018/19 2019/20 2018/19 2019/20 2018/19 2019/20 Materials & Research & Service & Characterisation Discovery Healthcare Total Reported growth +14.3% +2.2% +18.6% +8.9% Constant currency growth +10.4% +0.7% +13.6% +6.0% Oxford Instruments plc Half Year Resu
Slide 9: Adjusted Operating Profit by Sector
Adjusted Operating Profit by Sector Materials & Research & Service & £m Characterisation Discovery Healthcare Total 2018/19 9.7 4.8 6.5 21.0 Underlying movement 1.6 0.8 0.2 2.6 FX 0.9 0.8 0.5 2.2 2019/20 12.2 6.4 7.2 25.8 EBIT Margin 2018/19 16.1% 8.8% 19.9% 14.3% 2019/20 17.5% 10.5% 20.4% 15.5% Oxf
Slide 10: Cash Flow
Cash Flow Working Capital Outflow: £10.4m (2018: outflow of £1.2m) Pensions: £31.0m net asset: £2.6m (31 March 19 net Effective tax rate liability: £6.5m). Includes payment of 20.1% (2018: 21.2%) £2.3m as part settlement of US termination liabilities. (£10.4m) (£2.2m) (£2.0m) (£1.6m) (£1.1m) (£3.5m)
Slide 11: Currency Exposure
Currency Exposure 200 160 120 94.1 80 £m equivalent 38.1 40 31.4 21.1 19.3 16.7 9.4 2.2 0.8 0 (4.5) (1.2) (40) (35.2) (80) Sterling US Dollar Euro Japanese Yen Chinese Renminbi Other Sales Adjusted operating profit Oxford Instruments plc Half Year Results Presentation 2019 11
Slide 12: FX Sensitivity
FX Sensitivity • Favourable currency impact in HY 2019/20: AOP: +£2.2m • Estimated FY 2019/20 currency impact: AOP: +£3.0m – Based on applying YTD average rates and the 30/10/19 spot rate for the rest of the year – Average and forecast rates incorporate effect of hedging programme • Transactional &
Slide 13: Finance Summary
Finance Summary • Good growth in revenue and profit at reported and constant currency • AOP margin up 40bps at constant currency and 120bps at a reported level • Continuing adjusted basic earnings per share up 30% • Net cash of £14.2m and 7.9% increase to interim dividend Oxford Instruments plc Half
Slide 14: Horizon Update & Operations Review
Horizon Update & Operations Review Ian Barkshire Oxford Instruments plc Half Year Results Presentation 2019 14
Slide 15: Group Performance
Group Performance Academic: 49% Commercial: 51% Materials & Research & Discovery Service & Healthcare Characterisation • Good progress with Horizon • Strong revenue and profit growth across each of our sectors • Margin growth driven by improved commercial practices and gains through operational exce
Slide 16: Group Performance – End Markets
Group Performance – End Markets Academic: 49% Commercial: 51% • Broad and diverse range of attractive end markets – long term growth drivers 9% • Strong revenue growth across each 28% customer segment despite challenging 23% macroeconomic conditions • Market intimacy enabling expansion into new mark
Slide 17: Materials & Characterisation
42% Group revenue Materials & Characterisation Academic: 45% Commercial: 55% Asylum Research; NanoAnalysis; Plasma Technology Enabling the fabrication and characterisation of materials and devices down to the atomic scale • Double digit growth in revenue, profit and orderbook; good order growth 6% •
Slide 18: Materials & Characterisation Growth Examples
Materials & Characterisation Growth Examples Advanced Materials • Increasing demand for lighter, stronger, higher functioning materials Wind turbine blades • Investment in material science driving improved performance - broad range of end applications • New products and tailored applications driving
Slide 19: Materials & Characterisation Growth Examples
Materials & Characterisation Growth Examples Semiconductor & Communications • Continued weakness in silicon semiconductor market leading to reduced sales of imaging and analysis products Semiconductor chip microstructure • Strong growth in compound semiconductors for our etch and deposition systems
Slide 20: Compound Semiconductors Drivers & Markets
Compound Semiconductors Drivers & Markets Silicon Si SiC Higher SiC Wider Power + 10% range Higher Energy Temperature Efficiency Range Emit & Sense Faster 5 6 7 (Higher Speed Light B Boron C Carbon N Nitrogen Processing) DRIVERS 13 14 15 MARKETS Al Aluminium Si Silicon P Phosphorous Power Electronic
Slide 21: Research & Discovery
37% Group revenue Research & Discovery 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 • Strong revenue and double dig
Slide 22: Research & Discovery Growth Examples
Research & Discovery Growth Examples Global Market Drivers Healthcare & Lifescience • Increasing demand from researchers seeking Cell Biology Personalised Neuroscience Medicine to develop new therapies for cancer and neurological disorders • Revenue growth across product portfolio, attractive market
Slide 23: Research & Discovery Growth Examples
Research & Discovery Growth Examples Global Market Drivers Quantum Technology • Increased global government and Quantum Computing Secure Communication Quantum Sensors Quantum Imaging corporate funding for quantum technology • Growth in cryogenic platforms, material analysis systems and high speed sc
Slide 24: Service & Healthcare
Service & Healthcare 21% 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 • Good order, revenue & profit growth • Healthcare performance marginally impacted by phasing of syste
Slide 25: Summary & Outlook
Summary & Outlook • Strong first half performance: revenue, profit and order growth against a backdrop of uncertain macroeconomic conditions • Customer centric approach driving growth in existing markets and expansion into new areas • Portfolio breadth and end market diversity underpin our ability t
Slide 26: Questions
Questions Oxford Instruments plc Half Year Results Presentation 2019 26
Slide 27: Oxford Instruments' Operating Model
Oxford Instruments’ Operating Model Oxford Instruments plc Half Year Results Presentation 2019 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
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