Oxford Instruments Plc · LSE:OXIG
Oxford Instruments — H1 2016/17 Earnings Presentation
26 slides from Oxford Instruments's earnings presentation, November 2016
Slide 1: Interim Results Announcement to 30th September 2016
Interim Results Announcement To 30th September 2016 The Business of Science® Ian Barkshire – Chief Executive Gavin Hill – Group Finance Director © Oxford Instruments 2016
Slide 2: Agenda
Agenda The Business of Science® • Highlights • Financial Review • Operational Review • Outlook © Oxford Instruments 2016
Slide 3: Highlights
Highlights The Business of Science® • Stable performance in tough markets • Continued focus on self-help to improve performance • Improved profitability in NanoTechnology Tools • Revenue growth in Service offset by reduced refurbished system sales in OI Healthcare • Increased order book • Investment
Slide 4: Financial Review
The Business of Science® Financial Review Gavin Hill © Oxford Instruments 2016
Slide 5: Income Statement
Income Statement The Business of Science® Constant HY HY Reported Currency £m 2016/17 2015/16 Change Change Revenue 171.5 164.8 +4.1% -6.9% Adjusted operating profit 19.0 20.0 -5.0% -13.5% Net finance costs (3.3) (3.7) Adjusted profit before tax 15.7 16.3 -3.7% -14.1% Amortisation of acquired intang
Slide 6: Revenue by Sector
Revenue by Sector The Business of Science® NanoTechnology Industrial £m Tools Products Service Total* 2015/16: HY 85.4 46.0 33.9 164.8 Underlying (4.2) (6.6) (0.3) (11.3) FX 9.7 4.3 4.1 18.0 2016/17: HY 90.9 43.7 37.7 171.5 Growth Reported +6.4% -5.0% +11.2% +4.1% Constant currency -4.9% -14.3% -0.9
Slide 7: Revenue by Territory
Revenue by Territory The Business of Science® Group Europe North America Asia ROW Revenue % 25.1% 33.9% 39.0% 2.0% 66.9 61.2 58.1 58.6 43.1 40.8 4.2 3.4 2016 2017 2016 2017 2016 2017 2016 2017 Reported Growth +5.6% -5.1% +14.2% -19.0% Constant -4.2% -14.7% +0.7% -23.8% Currency Growth Constant curre
Slide 8: Order Book Growth
Order Book Growth The Business of Science® £m 162.2 165 160 reported: +19% 155 constant currency: +5% 150 reported: 140.4 +16% 145 136.9 constant currency: 140 +7% 135 130 125 120 September 2015 March 2016 September 2016 © Oxford Instruments 2016
Slide 9: Adjusted PBT Bridge
Adjusted PBT Bridge The Business of Science® £m 18 16.3 (3.4) 0.7 0.4 15.7 16 1.7 14 12 10 8 6 4 2 0 © Oxford Instruments 2016
Slide 10: Adjusted Operating Profit by Sector
Adjusted Operating Profit by Sector The Business of Science® NanoTechnology Industrial £m Tools Products Service Total 2015/16: HY 9.5 1.7 8.8 20.0 Underlying 1.3 (0.7) (3.3) (2.7) FX 0.4 0.4 0.9 1.7 2016/17: HY 11.2 1.4 6.4 19.0 EBIT Margin 2015/16 11.1% 3.7% 26.0% 12.1% 2016/17 12.3% 3.2% 17.0% 11
Slide 11: Movement in Net Debt
Movement in Net Debt The Business of Science® £m 24.7 (17.0) 25 20 15 (2.0) (4.0) 10 (3.5) (12.9) 5 1.9 0 (0.7) -5 (2.6) (0.8) (2.1) -10 (6.8) -15 © Oxford Instruments 2016
Slide 12: Currency Exposure: Translation & Transaction
Currency Exposure: Translation & Transaction The Business of Science® £m equivalent 104.2 110 90 70 50 30.5 26.8 30 18.7 13.5 8.3 8.3 5.9 10 (1.2) (10) (24.5) (30) Sterling US Dollar Euro Japanese Yen Other Sales Adjusted operating profit © Oxford Instruments 2016
Slide 13: Operational Review
The Business of Science® Operational Review Ian Barkshire © Oxford Instruments 2016
Slide 14: Business Segments
Business Segments The Business of Science® NanoTechnology Tools Industrial Products Service High-performance Analytical instruments Maintenance, service technology products and high technology and support for our • NanoCharacterisation components product portfolio. NanoAnalysis • Industrial Analysis
Slide 15: End Market Segments
End Market Segments The Business of Science® Group NanoTechnology Tools Industrial Products 1% 1% 2% 7% 11% 3% 12% 1% 4% 16% 4% 38% 4% 56% 47% 29% 9% 24% 10% 15% 6% © Oxford Instruments 2016
Slide 16: NanoTechnology Tools Performance
NanoTechnology Tools Performance The Business of Science® • Improved profitability and margin with growing order book • NanoAnalysis continues to deliver strong technical and financial performance • Further growth and improved performance from Andor • Reduced US and EU research funding impacted Asyl
Slide 17: NanoTechnology Tools Progress: Andor Technology
NanoTechnology Tools Progress The Business of Science® Andor Technology: Producing solutions that offer advanced life science imaging • Dragonfly - unprecedented image performance, resolution, sensitivity © Oxford Instruments 2016
Slide 18: NanoTechnology Tools Progress: NanoAnalysis
NanoTechnology Tools Progress The Business of Science® NanoAnalysis: Creating value for customers with application specific solutions • AZtecClean – automotive industry • AZtec HPA – hard disk drives NanoScience • Increased sales of next generation Triton system • Move towards integrated measurement
Slide 19: Industrial Products Performance
Industrial Products Performance The Business of Science® • Revenue down due to challenging end markets • Better operating profits through business improvements offset by reduced demand for MRI wire • New product launches and improved routes to market gaining traction in Industrial Analysis; margin i
Slide 20: Industrial Products Progress
Industrial Products Progress The Business of Science® • Pulsar sales growth driven by broader industrial customer solutions and academic demand • Innovative Hero™ window enables characterisation of hot metals, improving customer productivity © Oxford Instruments 2016
Slide 21: Service Performance
Service Performance The Business of Science® • Increased order book across our Service portfolio • Growth in Service revenues from our NanoTechnology Tools and Industrial Products businesses • Reduction in revenue and operating profit from OI Healthcare due to lower volume of refurbished system sale
Slide 22: Service Progress
Service Progress The Business of Science® • Expanding range of services • New webstores in USA, Europe, China • Microscopy consumables • Online booking for seminars • Online support documentation • Remote system monitoring © Oxford Instruments 2016
Slide 23: Delivering Sustainable Growth
Delivering Sustainable Growth The Business of Science® • Customer and market focus • Innovation and new product development • Delivering enhanced product solutions • Delivering operational excellence © Oxford Instruments 2016
Slide 24: Outlook
Outlook The Business of Science® • Revenue and order book ahead of last year • Full year performance expected to be in line with last year • Anticipate currency benefit of approximately £7.0 million to operating profit in 2017/18 • Confidence in long term growth prospects through commercial exploita
Slide 25: Questions?
The Business of Science® Questions? © Oxford Instruments 2016
Slide 26: Disclaimer
Disclaimer The Business of Science® 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
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