Oxford Instruments : 2023-2024 Preliminary Results Presentation

Full-year results

presentation and

strategy update

11th June 2024

Richard Tyson, CEO

Gavin Hill, CFO

Full-year results presentation and strategy update

Market-leading technology provides excellent platform for sustainable revenue growth and margin expansion

What we'll cover today:

• 2023/24 performance highlights
• Our strategy to grow Oxford Instruments
• Finance update 2023/24
• Your questions

© Oxford Instruments 2024

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Robust performance provides excellent platform for growth and margin expansion

Strong revenue growth: 9.8% at constant currency

Adjusted operating profit up 3.7% at constant currency

Positive underlying book-to-bill and good order book visibility

Action taken to pivot from sensitive markets in China: strong growth in Europe and South-East Asia

Continued investment for growth; Severn Beach site now operational

Strong net cash position: £84m

© Oxford Instruments 2024

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Oxford Instruments:

Refreshed strategy

through a new lens

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Comprehensive review, well-placed good business, great opportunity

Exceptional technology and software

Well positioned in key structural growth markets

Strong team, unique expertise in scientific research and application engineering

Well-invested with a strong innovation pipeline

Opportunities to improve performance to support growth and margin enhancement

• significant value creation potential

© Oxford Instruments 2024

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A refreshed strategy: a new lens on Oxford Instruments

• New simplified divisional structure
• Focus on 3 main markets: materials analysis, semiconductors and healthcare & life science
• Major operational improvement programme
• Step change in our customer performance
• Continue significant investment in technology
• Drive to net zero as we enable our customers to do the same

5-8% 20%+

OrganicMargin growth CAGR

8-9%	Enhance	>30%
	growth,
Revenue									ROCE
	margins
invested in R&D
& returns

Selective	>85%
M&A	Cash conversion

© Oxford Instruments 2024

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Leveraging our technology insight across the research and commercial production lifecycle

Academic research		Commercial applied R&D | Production and testing
Growing by 3-6% a year		Mid to high single digit market growth

Explore

c. 35% of Group revenue

• Established in all geographic regions and all areas of scientific research
• Strong historical reputation and reach into academic institutions
• Defensive underpin to demand with diversified funding

© Oxford Instruments 2024

Develop

c. 45% of Group revenue

4 x larger than Explore

• Leveraging our market insight from academic research to support commercial applications
• Improved position in recent years

Produce

c. 20% of Group revenue

10-20 x larger than Explore

• Early progress
• Customer service improvement required to meet market standards

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Positioned in structural growth markets

Three key structural growth end markets

Materials	4-7%	£1.2bn	43%
Market	Market size*	% Group
Analysis	growth pa*		revenue

Structural drivers

• Supports advanced material development and sustainability progress
• Improved performance from finite resources

	6-9%	£1.5bn	27%	Structural drivers
	•	Enabling development of new compound semiconductors
Semiconductors	Market	Market size*	% Group
growth pa*		revenue	•	Growth in bandwidth, connectivity and faster devices
				• Power efficiency and green economy
	8-12%	£2.0bn	19%	Structural drivers
Healthcare &	•	Improved treatments & vaccines; reduced cost of development
Market	Market size*	% Group
Life Science	growth pa*		revenue	•	Personalised medicine & therapies
			•	Ageing population

• Market growth opportunities refer to applied R&D and production and testing; market size = our addressable market annually Source: SDi/Gartner

c.90% of Group revenues in three key markets exhibiting strong structural growth Other 10% includes quantum: uncertain timing and technology, high potential

© Oxford Instruments 2024

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A clear plan for value creation

	Imaging & Analysis		Advanced Technologies
		Good to great		Fix, improve and grow
	Leading range of microscopy, scientific cameras,		Compound semiconductor fabrication equipment
Capabilities		Cryogenic and magnet technology for quantum
spectroscopy and associated analytical tools and software
				and advanced materials research
	Current	Medium-term		Current	Medium-term

Thec.£328m

opportunity* revenue

22-24%	23-25%	c.£142m
AOP margin	AOP margin*	revenue
recent history

0-4%	10-12%
AOP margin	AOP margin*
recent history

	Excellent business and good track record		Focus business on critical actions
	•	Share best practice across businesses and regions		• Extract full growth and margin potential from compound
The plan	•	Standardise processes		semiconductor and new facility
	•	Improve operating efficiency		• Fix and improve Quantum business
				• Improve operational performance and efficiency
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Imaging & Analysis (70% of Group revenue)

CapabilitiesRationale

Imaging & Analysis

Leading range of

microscopy, scientific cameras, spectroscopy and associated analytical tools, software and service products

Markets

	Similar smaller
scale imaging and		Common operating	Greater
analysis equipment	framework, routes to	cross-selling
	and analytical	market, customer base	opportunities
	software tools

Three key markets:

Materials Analysis

Opportunity to

Opportunity

for operational

leverage best practice

Semiconductors

improvement,

and improve sales

efficiency, capacity

funnel and service

Healthcare &

increase and

performance

value engineering

Life Science

High margin products and analytical software, common routes to market … Good to great

© Oxford Instruments 2024

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