Slide 1: Unaudited preliminary results presentation
Unaudited preliminary results presentation to 31 March 2023 Image to follow Tuesday 13 June 2023 Ian Barkshire Chief Executive Gavin Hill Chief Financial Officer
Slide 2: Highlights
Highlights Strong financial performance Structural growth markets driving strong organic order, revenue and profit growth Strategy delivering continued Underpinned by depth of market intimacy and relentless growth momentum product innovation Well positioned in attractive Major markets and geographie
Slide 3: Driving sustainable growth and margin expansion
Driving sustainable growth and margin expansion Enabling a greener, healthier, more connected advanced society Well positioned in global markets with long-term structural growth drivers • Scale and differentiation within our markets: Advanced Materials, Semiconductor, Healthcare & Life Science, Ener
Slide 4: Horizon strategy driving continued progress
Horizon strategy driving continued progress Delivering strong growth to existing customers, expanding into new adjacent Market markets and landing new key accounts through our deep market insights and intimacy increased regional investment Innovation and New disruptive products and tailoring of exis
Slide 5: Group performance – end markets
Group performance – end markets Research & Fundamental Healthcare & • Strong growth in our end markets – life science, semiconductor, Science Life Science -16%* advanced materials, energy & environment, and quantum – each +10%* 4% with long-term sustainable structural growth drivers 19% • Product le
Slide 6: Strong progress on sustainability
Strong progress on sustainability In line with our purpose, we are committed to enabling a greener, healthier, more connected advanced society, both through our products and services and in our own operations 2045 net zero target announced People at the heart of our strategy • Medium-term targets se
Slide 7: Finance review
Finance review Gavin Hill Chief Financial Officer © Oxford Instruments 2022 7
Slide 8: A strong track record of delivery
A strong track record of delivery Orders Revenue £445m £512m £423m £367m £314m £317m £319m £354m £335m £336m £276m £278m £295m £272m 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 Adjusted profit before tax, and margin (%) Return on capital employed 18.1% 18.1% 19.0% 35% 35% M
Slide 9: Income statement
Income statement Constant Reported currency £m 2022/23 2021/22 change change Revenue 444.7 367.3 +21.1% +14.0% Adjusted1 operating profit 80.5 66.3 +21.4% +13.4% Amortisation of acquired intangibles (9.3) (9.5) Non-recurring items (1.8) (2.1) Mark-to-market movement of currency hedges 3.0 (6.4) Stat
Slide 10: Revenue by sector
Revenue by sector £444.7m +21.1%2 reported +14.0%2 constant currency £367.3m Currency Service & Research & Healthcare 7.1%2 Discovery Materials & +9.6%1 +8.1%1 Characterisation +19.2%1 FY 21/22 FY 22/23 1 Constant currency growth rate compared to prior year sector revenue 2 Growth rate compared to p
Slide 11: Adjusted operating profit by sector
Adjusted operating profit by sector £80.5m +21.4%2 reported +13.4%2 constant currency Group £66.3m margin FY22/23: 18.1% Currency Research & Service & CC margin FY21/22: 18.0% 8.0%2 Discovery Healthcare (21.1%)1 margin FY21/22: 18.1%% Materials & +8.5%1 Characterisation Materials & Characterisation
Slide 12: Materials & Characterisation
Materials & Characterisation 53% Group revenue (Academic: 42% Commercial: 58%) Research & Constant Fundamental Healthcare & Life Science 2022/23 2021/22 currency Science +13%* £m £m Growth growth +143%* 1% Orders 272.8 219.2 +24.5% +18.3% Revenue 234.5 185.5 +26.4% +19.2% 6% Advanced Adjusted1 opera
Slide 13: Research & Discovery
Research & Discovery 31% Group revenue (67% academic; 33% commercial) Constant Research & 2022/23 2021/22 currency Fundamental 5% Science £m £m Growth growth -29%* Orders 160.4 133.9 +19.8% +11.6% Healthcare & 9% Life Science Revenue 139.4 120.3 +15.9% +8.1% +13%* Adjusted1 operating profit 18.0 21.
Slide 14: Service & Healthcare
Service & Healthcare 16% Group revenue Constant 2022/23 2021/22 currency £m £m Growth growth Orders 78.4 70.0 +12.0% +6.4% Revenue 70.8 61.5 +15.1% +9.6% Adjusted1 operating profit 22.0 18.9 +16.4% +8.5% Adjusted1 operating margin 31.1% 30.7% Statutory operating profit 22.4 18.9 +18.5% Key performan
Slide 15: Revenue and order growth by region
Revenue and order growth by region Order growth Europe North America reported +16% reported +54% 29% constant currency +14% constant currency +36% North America Asia1 reported +40% reported +7% constant currency +2% constant currency +24% Revenue Asia £444.7m 45% reported +12% constant currency +8%
Slide 16: Order book by sector
Order book by sector Service & Research & Healthcare £320m Materials & Discovery £45m +23%2 reported Characterisation £119m +21%1 +19%2 constant currency £156m +8%1 +30%1 £260m FY 21/22 FY 22/23 1 Constant currency growth rate compared to prior year sector order book 2 Growth rate compared to prior
Slide 17: Cash flow
Cash flow Cash conversion Adj effective 58% (88%1) tax rate FY22: 72% 20.7% (84%1) Working FY22: 17.8% capital Earn-out payment Working Pension asset capital Capex & £26.4m outflow capitalised Lease FY22: £51.7m development payments Tax £9.1m costs Pensions FY22: £11.8m Dividend Dividend FX, outflow
Slide 18: Currency exposure
Currency exposure Revenue (£m equivalent) Adjusted operating profit (£m equivalent) Sterling £72m Sterling £(98)m US Dollar £234m US Dollar £106m Euro £86m Euro £37m Japanese Yen £44m Japanese Yen £34m Chinese £6m Chinese Renminbi £0m Renminbi Other £3m Other £1m Oxford Instruments plc Preliminary r
Slide 19: FX sensitivity
FX sensitivity • Favourable currency impact in the year: revenue: +£26.1m ; adjusted operating profit: +£5.3m • Estimated full-year 2023/24 currency impact • Assuming derivatives in place and current rates, approximate currency sensitivity against 2022/23 is a headwind to revenue and profit of £15m
Slide 20: Finance summary
Finance summary • Strong growth in orders and order book with a book-to-bill of 1.15 • Good constant currency revenue growth of 14%, 70% driven by volume. Operating margin held at 18.1% due to increase in overhead investment. Strong adjusted basic EPS growth of 19.5% • Geopolitical environment resul
Slide 21: End market overview
End market overview Ian Barkshire Chief Executive © Oxford Instruments 2022 21
Slide 22: Markets: long-term structural growth drivers
Markets: long-term structural growth drivers Healthcare & Life Science Semiconductor & Advanced Materials 19% of Group revenue Communications 32% of Group revenue £85.2m, up 10% 27% of Group revenue £140.2m, up 25% • Improved treatments & vaccines £122.0m, up 9% • Personalised medicine & therapies •
Slide 23: Driving new capabilities across life science
Healthcare & Life Science Driving new capabilities across life science Delivering transformational performance to accelerate the development of new treatments and therapies BC43: research-grade performance, compelling price Dragonfly: ultimate image performance for high-end research point and unprec
Slide 24: Enabling the production of compound semiconductors
Semiconductor & Communications Enabling the production of compound semiconductors Providing systems and atomic-scale processes for the critical layers that drive advanced performance and improved yield for higher power at a lower environmental cost Data centres Augmented reality 5G networks EVs We a
Slide 25: A critical role in the analysis of environmental impacts
Energy & Environment A critical role in the analysis of environmental impacts Helping scientists all over the world to diagnose and address the impacts of climate change and environmental pollution Assessing the volumes and types of Analysing airborne pollution which microplastic particles in the oc
Slide 26: Accelerating growth in quantum computing
Quantum Technology Accelerating growth in quantum computing We are at the heart of transitioning this disruptive technology from the research lab to practical, commercial applications Enabling fundamental research Providing infrastructure and Working with major global technology into the next genera
Slide 27: Summary and outlook
Summary and outlook • Strategic positioning and customer-focused delivery in sustainable structural growth markets drives growth in orders, revenue and profit • Product leadership and relentless focus on innovation underpin continued strong momentum, with robust pipelines across all end markets • Ma
Slide 28: Thank you
Thank you Oxford Instruments plc Preliminary results presentation 2023 28
Slide 29: 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 30: Appendix
Appendix
Slide 31: Analysing the building blocks of an advanced society
Advanced Materials Analysing the building blocks of an advanced society Serving growing demand for advanced material capabilities – from lighter, stronger, more sustainable structural materials to sophisticated new 2D and 3D materials for high-tech gadgets Towards a circular economy: Reduce, reuse,
Slide 32: The Oxford Instruments business model
The Oxford Instruments business model Our core purpose is to enable a greener, healthier, more connected advanced society Our Horizon strategy defines the way we operate, embedding clearly defined core capabilities, processes and procedures across our businesses. Oxford Instruments plc Preliminary r