Slide 1: Preliminary Results Presentation to 31st March 2018
Preliminary Results Presentation to 31st March 2018 Ian Barkshire Chief Executive Gavin Hill Group Finance Director Oxford Instruments plc Preliminary Results presentation 2018
Slide 2: Agenda
Agenda 01: Highlights 02: Finance Review 03: Horizon Update 04: Operational Review 05: Summary and Outlook Oxford Instruments plc Preliminary Results presentation 2018 2
Slide 3: Highlights
Highlights • Good progress with the early • Strong growth in orders and order implementation of Horizon book • Transitioned to a more commercially • Strong growth in Materials & focused, market driven Group Characterisation • Reported revenue in line with • Improved profitability in Service & previo
Slide 4: Finance Review
Finance Review Gavin Hill Oxford Instruments plc Preliminary Results presentation 2018
Slide 5: Income Statement
Income Statement Constant Reported Currency £m 2017/18 2016/17 Change Change Revenue 296.9 300.2 (1.1%) (0.1%) Adjusted operating profit 46.5 38.0 22.4% (5.5%) Net finance costs (4.2) (6.5) Adjusted profit before tax 42.3 31.5 34.3% +0.6% Amortisation of acquired intangibles (10.9) (12.5) Impairment
Slide 6: Revenue by Sector
Revenue by Sector Materials & Research & Service & £m Characterisation Discovery Healthcare Total* 2016/17 105.7 125.3 69.3 300.2 Underlying movement 13.9 (12.1) (2.0) (0.2) FX (1.5) (1.1) (0.5) (3.1) 2017/18 118.1 112.1 66.8 296.9 Growth Reported +11.7% (10.5%) (3.6%) (1.1%) Constant currency +13.2
Slide 7: Revenue by Territory: £m
Revenue by Territory: £m Group Revenue % Europe North America Asia Row 27% 31% 40% 2% 121.2 119.6 100.4 92.9 79.3 73.8 4.8 5.1 2017 2018 2017 2018 2017 2018 2017 2018 Reported growth +7.5% (7.5%) (1.3%) +6.3% Constant currency growth +4.3% (5.3%) +1.2% +8.3% Orders1: reported growth +12.2% +3.5% +5.
Slide 8: Order Book: £m
Order Book: £m 59.0 52.8 49.8 40.8 34.2 25.0 2017 2018 2017 2018 2017 2018 Materials & Research & Service & Total Characterisation Discovery Healthcare Reported growth +36.8% +11.9% (18.2%) +5.0% Constant currency growth +42.4% +15.2% (10.8%) +10.4% Reported growth (7.8%) +14.0% Constant currency gr
Slide 9: Adjusted Operating Profit by Sector
Adjusted Operating Profit by Sector Materials & Research & Service & £m Characterisation Discovery Healthcare Total 2016/17 12.2 13.8 12.0 38.0 Underlying movement 2.4 (5.0) 0.5 (2.1) FX 5.5 5.0 0.1 10.6 2017/18 20.1 13.8 12.6 46.5 EBIT Margin 2016/17 11.5% 11.0% 17.3% 12.7% 2017/18 17.0% 12.3% 18.9
Slide 10: Cash Flow / Cash/(Debt): £m
Cash Flow - Working Capital Pensions: (20) Outflow: £13.2m (2017: Deficit: £15.3m (2017: £4.4m) £25.1m) Annual contribution: £7.6m Effective tax rate (40) 23.9% (2017: 24.8%) Disposal (net cash flow): Industrial Analysis: £71.2m Property: £9.3m Inv in Dividend Other/FX Cash/(Debt): £m Associate (net
Slide 11: Currency Exposure
Currency Exposure 180 154.7 120 £m equivalent 55.8 60 48.6 44.0 33.0 32.5 18.8 5.3 0 (0.4) (60) (48.9) Sterling US Dollar Euro Japanese Yen Other Sales Adjusted operating profit Oxford Instruments plc Preliminary Results presentation 2018 11
Slide 12: Finance Summary
Finance Summary • Growth in orders and order book at reported and constant currency • Adjusted operating margin up 300 basis points to 15.7%, reflecting currency benefits • Continuing adjusted basic earnings per share up 35.7% • Net debt down to £19.7 million with net debt:EBITDA leverage at 0.3 tim
Slide 13: Horizon Update & Operations Review
Horizon Update & Operations Review Ian Barkshire Oxford Instruments plc Preliminary Results presentation 2018
Slide 14: Horizon Progress: Customer Centric Approach
Horizon Progress: Customer Centric Approach • Good progress in early implementation phase of Horizon –Firmly embedded across the Group with positive engagement –Starting to see tangible benefits • Transitioned to a more focused, market driven-Group –Broad range of applications and industrial segment
Slide 15: Solutions and Application Focus
Solutions and Application Focus Oxford Instruments plc Preliminary Results presentation 2018 15
Slide 16: Solutions and Application Focus
Solutions and Application Focus Oxford Instruments plc Preliminary Results presentation 2018 16
Slide 17: Application Solutions
Application Solutions Battery Technology Automotive Industry • CypherES electrochemistry cell • AZtecClean • Instrumentation upgrade, • Tailored software upgrade and bespoke data analytics bespoke data analytics • Enables characterisation in real- • Identifies contamination and its time, real-life o
Slide 18: Horizon Progress: Developing & Embedding Capabilities
Horizon Progress: Developing & Embedding Capabilities • Transformed leadership team at operational level –50% of senior managers recruited over the last two years • Embedding best practice across sales, service and operations to augment excellence in technology –Overlay sharp commercial focus –Solut
Slide 19: End Market Segments: Revenue
End Market Segments: Revenue Materials & Group* Characterisation Research & Discovery 2% 7% 4% 20% 13% 29% 30% 3% 40% Academic: 55% Academic: 51% 3% Academic: 73% 4% Commercial: 45% Commercial: 49% Commercial: 27% 6% 46% 6% 20% 9% 1% 29% 10% 16% * Includes revenue from Service & Healthcare Oxford In
Slide 20: Materials & Characterisation
Materials & Characterisation NanoAnalysis; Asylum Research; Plasma Technology Enabling the fabrication and characterisation of materials and devices down to the atomic scale (40% of Group revenue; 49% commercial funding) • Double digit order, revenue and profit growth across the sector • Strong grow
Slide 21: Materials & Characterisation
Materials & Characterisation NanoAnalysis • Symmetry driving growth in advanced materials • Ultim delivering unprecedented performance for semiconductor customers EDS map of a bulk Smartphone processor cross section Smartphone showing TEM like spatial resolution in the SEM processor Asylum Research
Slide 22: Materials & Characterisation
Materials & Characterisation Plasma Technology • Core expertise in compound semiconductors • Enabling more compact, higher speed, larger capacity and higher energy efficient devices • Market drivers include big data, IoT, AI and Compound semiconductor wafer autonomous vehicles • Growth in academic a
Slide 23: Research & Discovery
Research & Discovery Andor Technology; X-ray Technology; NanoScience & Magnetic Resonance; ScientaOmicron Advanced solutions that create unique environments and enable measurements down to the molecular and atomic level (38% of Group revenue; 73% academic funding) • Strong second half more than offs
Slide 24: Research & Discovery
Research & Discovery Andor Technology • Order growth supported by new product launches; revenue impacted by order phasing • Increased demand for image visualisation and analysis software • Growth from high performing scientific cameras Neuron structure, brain sample – Astronomy, life science and qua
Slide 25: Research & Discovery
Research & Discovery NanoScience & Magnetic Resonance • Complexity of order book negatively impacted performance in the year • Improvement plan under new leadership team • Growth in customised high magnetic systems and cryogenic platforms • Growth in benchtop NMR solutions ScientaOmicron (JV) • Impr
Slide 26: Service & Healthcare
Service & Healthcare OI Healthcare; OiService Provides customer service and support for our own products and the service, sale and rental of third party healthcare imaging systems (22% of Group revenue) • Improved profitability and margin • Revenue and order growth offset by reduction in OI Healthca
Slide 27: Summary
Summary Good progress with Horizon, transitioning to a more commercially-focused Group Materials & Characterisation Research & Discovery Service & Healthcare • Performing strongly in • Improved second half • OiService: focus on attractive markets performance increasing after-market revenue by provid
Slide 28: Outlook
Outlook • Our chosen end markets remain attractive, supported by commercial and government investment • Our growing order book, customer application focus and drive for operational efficiencies provide confidence for the year ahead • We expect to see an improvement in performance on a reported basis
Slide 29: Questions
Questions Oxford Instruments plc Preliminary Results presentation 2018 29
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