Slide 1: Preliminary Results Presentation
Preliminary Results Presentation to 31st March 2019 Ian Barkshire Chief Executive Gavin Hill Group Finance Director Oxford Instruments plc Preliminary Results presentation 2019
Slide 2: Agenda
Agenda Highlights Finance Review Horizon Update Operational Review Summary and Outlook Oxford Instruments plc Preliminary Results presentation 2019 2
Slide 3: Highlights
Highlights • Continued progress with the • End markets remain positive with long- implementation of Horizon term growth drivers • Investment in operations, sales and • Strong order, revenue and profit growth in marketing Materials & Characterisation • Delivered strong revenue and profit • Good order
Slide 4: Finance Review
Finance Review Gavin Hill Oxford Instruments plc Preliminary Results presentation 2019
Slide 5: Income Statement
Income Statement Constant Reported Currency £m 2018/19 2017/18 Change Change Revenue 333.6 296.9 +12.4% +10.8% Adjusted operating profit 49.7 46.5 +6.9% +9.7% Net finance costs (2.2) (4.2) Adjusted profit before tax 47.5 42.3 +12.3% +15.4% Amortisation of acquired intangibles (9.6) (10.9) Non-recurr
Slide 6: Revenue by Sector
Revenue by Sector Materials & Research & Service & £m Characterisation Discovery Healthcare Total* 2017/18 118.1 112.0 66.8 296.9 Underlying movement 18.1 11.1 2.8 32.0 FX 1.7 2.1 0.9 4.7 2018/19 137.9 125.2 70.5 333.6 Growth Reported +16.8% +11.8% +5.5% +12.4% Constant currency +15.3% +9.9% +4.2% +
Slide 7: Revenue by Territory
Revenue by Territory: £m Europe North America Asia RoW Group Revenue % 24% 31% 43% 2% 143.1 119.6 103.8 92.9 79.3 81.2 5.1 5.5 2017/18 2018/19 2017/18 2018/19 2017/18 2018/19 2017/18 2018/19 Reported growth +2.4% +11.7% +19.6% +7.8% Constant currency growth +2.5% +9.8% +17.7% (5.9%) Orders: reported
Slide 8: Order Book
Order Book: £m 91.1 78.0 41.2 40.8 39.3 34.2 2017/18 2018/19 2017/18 2018/19 2017/18 2018/19 Materials & Research & Service & Characterisation Discovery Healthcare Total Reported growth +20.5% +16.8% (3.7%) +12.2% Constant currency growth +16.7% +15.4% (8.1%) +9.4% * 2018 adjusted for IFRS 15 Oxford
Slide 9: Adjusted Operating Profit by Sector
Adjusted Operating Profit by Sector Materials & Research & Service & £m Characterisation Discovery Healthcare Total 2017/18 20.1 13.8 12.6 46.5 Underlying movement 2.8 (0.3) 2.0 4.5 FX (0.8) (0.8) 0.3 (1.3) 2018/19 22.1 12.7 14.9 49.7 EBIT Margin 2017/18 17.0% 12.3% 18.9% 15.7% 2018/19 16.0% 10.1% 2
Slide 10: Cash Flow
Cash Flow £3.7m Pensions: £60.7m Deficit: £6.5m (31 March 18: £15.3m) Estimated cash cost of $4.5m over next (£3.5m) 12 months to terminate US defined benefit (£6.3m) scheme (£3.2m) (£3.2m) Working Capital: Inflow: £3.7m (2018: outflow of £13.2m) (£8.7m) Effective tax rate 21.9% (2018: 23.9%) Cash s
Slide 11: Currency Exposure
Currency Exposure 200 183.2 160 120 80 64.1 61.5 £m equivalent 47.6 34.1 36.4 40 20.6 4.9 2.0 0 (40) (80) (71.1) Sterling US Dollar Euro Japanese Yen Other Sales Adjusted operating profit Oxford Instruments plc Preliminary Results presentation 2019 11 11
Slide 12: Finance Summary
Finance Summary •Good growth in orders and order book at reported and constant currency •Revenue growth of 10.8% and adjusted operating profit (AOP) growth of 9.7% at constant currency against last year •AOP margin broadly neutral at constant currency against last year •Continuing adjusted basic ear
Slide 13: Horizon Update & Operations Review
Horizon Update & Operations Review Ian Barkshire Oxford Instruments plc Preliminary Results presentation 2019
Slide 14: Horizon Progress – Two Years In
Horizon Progress – Two Years In •Building a stronger Oxford Instruments positioned to deliver long-term sustainable growth and margin improvement •Transitioning to a customer centric, market focused Group •Growth into current markets and expansion into new applications •Portfolio positioned to addre
Slide 15: Group Performance
Group Performance Academic: 49% Commercial: 51% Materials & Research & Discovery Service & Healthcare Characterisation •Strong revenue and profit growth •Underlying margin growth offset by in-year investments •Expansion of commercial customer base and robust academic markets •Strong growth in orders
Slide 16: Group Performance – End Markets
Group Performance – End Markets Academic: 49% Commercial: 51% •Broad and diverse range of end markets 8% and industrial sectors 28% 24% •End markets remain positive with long- term growth drivers 4% •Healthy revenue and order growth across 5% 22% 9% our main customer segments •Strong growth across A
Slide 17: Materials & Characterisation
41% Group revenue Materials & Characterisation Academic: 42% Commercial: 58% Asylum Research; NanoAnalysis; Plasma Technology Enabling the fabrication and characterisation of materials and devices down to the atomic scale •Double digit growth in revenue, orders and orderbook 5% •Strong profit growth
Slide 18: Materials & Characterisation Growth Examples: Advanced Materials, Energy
Materials & Characterisation 41% Group revenue Academic: 42% Growth Examples Commercial: 58% Advanced Materials •Increasing demand for lighter, stronger, higher functioning materials Super-alloy •Broad end markets include automotive, Microstructure additive manufacturing, consumer electronics and po
Slide 19: Materials & Characterisation Growth Examples: Semiconductor & Communications
Materials & Characterisation 41% Group revenue Academic: 42% Growth Examples Commercial: 58% Global Market Drivers Semiconductor & Communications •Strong growth in compound Power Electronics Connectivity Communications semiconductors more than offset the decline from electronics and mainstream silic
Slide 20: Research & Discovery
38% Group revenue Research & Discovery Academic: 69% Commercial: 31% 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 •Double digit revenue, order &
Slide 21: Research & Discovery Growth Examples: Healthcare & Lifescience
Research & Discovery 38% Group revenue Academic: 69% Growth Examples Commercial: 31% Global Market Drivers Healthcare & Lifescience •Strong performance from optical Cell Biology Personalised Medicine Neuroscience microscopy systems, imaging software and scientific cameras •Development of new therapi
Slide 22: Research & Discovery Growth Examples: Quantum Technology
Research & Discovery 38% Group revenue Academic: 69% Growth Examples Commercial: 31% Global Market Drivers Quantum Technology • Investment growth from academic and Quantum Secure Quantum Quantum Computing Communication Sensors Imaging commercial customers in quantum computing, sensors, imaging & sec
Slide 23: 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 Order, revenue & profit growth, with margin improvement OiService • Increased demand for services in l
Slide 24: Summary & Outlook
Summary & Outlook • Good progress in the year, supported by Horizon strategy • Well positioned in attractive markets with long-term growth drivers and focused on segments where we can maintain leadership positions • Addressing some of the world’s major challenges: enabling a greener economy, increas
Slide 25: Questions
Questions Oxford Instruments plc Preliminary Results presentation 2019
Slide 26: 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