Oxford Instruments Plc · LSE:OXIG
Oxford Instruments — H1 2008/09 Earnings Presentation
28 slides from Oxford Instruments's earnings presentation, Nov 18, 2008
Slide 1: Half Year Results Announcement November 18th 2008
Oxford Instruments Half Year Results Announcement November 18th 2008 Jonathan Flint – Chief Executive Kevin Boyd - Group Finance Director The Business of Science® ©Oxford Instruments
Slide 2: Contents
Oxford Instruments Contents • Half Year Overview – Jonathan Flint • Financial Review – Kevin Boyd • Operational Review – Jonathan Flint The Business of Science® ©Oxford Instruments
Slide 3: Half-Year Overview
Oxford Instruments Half-Year Overview • Sales up 19% • Profits up to £2.6m (2008 £1.8m) • Continued organic growth • Two successful acquisitions • Interim Dividend unchanged • On plan The Business of Science® ©Oxford Instruments
Slide 4: Strategic Overview
Oxford Instruments Strategic Overview We plan to double the size of the business over 5 years and at the same time improve our return on sales by 10% The Business of Science® ©Oxford Instruments
Slide 5: What have we achieved in the first half of the plan?
Oxford Instruments What have we achieved in the first half of the plan? • Development of Commercial Culture • New Product Introductions • Acquisitions The Business of Science® ©Oxford Instruments
Slide 6: How have changes in the global trading environment affected us?
Oxford Instruments How have changes in the global trading environment affected us? • US Decline in some sectors • EMEA Steady on average • Asia (exc China) Steady on average • China Growth in some sectors The Business of Science® ©Oxford Instruments
Slide 7: Opportunities for the second half of the plan: Growth
Oxford Instruments Opportunities for the second half of the plan Growth • Growth may be harder to achieve • New Product Introductions will give us market share gains • Key industries, such as photovoltaic devices, appear to remain buoyant The Business of Science® ©Oxford Instruments
Slide 8: Opportunities for the second half of the plan: Margin Improvement
Oxford Instruments Opportunities for the second half of the plan Margin Improvement • Business process re-engineering • Supplier leverage • Freight costs • Currency The Business of Science® ©Oxford Instruments
Slide 9: Opportunities for the second half of the plan: Acquisitions
Oxford Instruments Opportunities for the second half of the plan Acquisitions • Much of the acquisitive growth for the plan has already been achieved • Given the uncertainties in valuations, only opportunities to offer near term value would be pursued • There is IP and route to market value to be ha
Slide 10: Financial Review
Oxford Instruments Financial Review Kevin Boyd Group Finance Director The Business of Science® ©Oxford Instruments
Slide 11: Financial Highlights
Oxford Instruments Financial Highlights 2008/09 2007/08 Growth £m £m Revenues 92.8 78.3 18.5% Gross profit 38.2 31.5 GPM% 41.2% 40.2% Trading profit 3.5 2.0 75.0% Finance costs (0.9) (0.2) Adjusted profit before tax 2.6 1.8 44.4% Amortisation of acquired intangibles (2.0) (0.4) "Exceptionals" 2.0 0.
Slide 12: Sales Bridge
Oxford Instruments Sales Bridge The Business of Science® ©Oxford Instruments
Slide 13: Profit Bridge
Oxford Instruments Profit Bridge The Business of Science® ©Oxford Instruments
Slide 14: Cash Bridge
Oxford Instruments Cash Bridge The Business of Science® ©Oxford Instruments
Slide 15: Half Yearly Sales
Oxford Instruments Half Yearly Sales The Business of Science® ©Oxford Instruments
Slide 16: Half Yearly Adj. PBT
Oxford Instruments Half Yearly Adj. PBT The Business of Science® ©Oxford Instruments
Slide 17: FX rates
Oxford Instruments FX rates Historic achieved rates plus hedged rates for current and next year The Business of Science® ©Oxford Instruments
Slide 18: Sales, Orders and Orderbook
Oxford Instruments Sales, Orders and Orderbook The Business of Science® ©Oxford Instruments
Slide 19: 'Exceptionals'
Oxford Instruments ‘Exceptionals’ £m £M Profit Cash Disposal of ODL 3.4 3.0 Write down of Investment (0.5) Disposal of MBE (0.9) 0.3 2.0 3.3 The Business of Science® ©Oxford Instruments
Slide 20: Operational Review
Oxford Instruments Operational Review Jonathan Flint Chief Executive The Business of Science® ©Oxford Instruments
Slide 21: Structure
Oxford Instruments Structure Oxford Instruments plc Analytical Superconductivity Cryogenic systems Industrial Instruments for elemental Nano Superconducting analysis metals identification, Analysis coating thickness measurement Science magnets and X-ray sources Superconducting OST wire and cables. M
Slide 22: Industrial Analysis
Oxford Instruments Industrial Analysis • Launch of next generation, high- performance hand held analysers • New applications Photovoltaics – analysis of solar panels and fuels cells Oxford Instruments X-ray detector on Chandrayaan-1, India’s space mission to survey the moon The Business of Scien
Slide 23: NanoAnalysis
Oxford Instruments NanoAnalysis • Launch of X-Max – world’s first large area silicon drift detector • Thin Film Analysis for accurate, non-destructive analysis of thin film coatings • Key supplier of forensic systems to police forces world-wide The Business of Science® ©Oxford Instruments
Slide 24: NanoScience
Oxford Instruments NanoScience • High demand for Liquid Cryogen-free low temperature tools • Restructuring programme to re-focus the business Dedicated business streams Streamlined workforce The Business of Science® ©Oxford Instruments
Slide 25: Plasma Technology
Oxford Instruments Plasma Technology • Photovoltaic market strong • HBLED market continues to develop • New orders in the RFID market – Radio Frequency Identification Devices The Business of Science® ©Oxford Instruments
Slide 26: Molecular Biotools
Oxford Instruments Molecular Biotools • PharmaSense™ Understanding the behaviour of Tablet dissolution at 0 hrs Tablet dissolution at 8 hrs drugs in the human body • Rock Core Analysis for oil exploration The Business of Science® ©Oxford Instruments
Slide 27: Superconducting Technology
Oxford Instruments Superconducting Technology • Fusion, research and new medical applications for our Niobium Tin superconducting wire • Increase in supply of MRI conductors • ITER The Business of Science® ©Oxford Instruments
Slide 28: Outlook
Oxford Instruments Outlook • Currently on plan • Ready to take necessary action to maximise shareholder value • Differentiated product portfolio • Geographic spread • Strong R&D pipeline • Balance of organic and acquisitive growth • Currency tailwind “These factors underpin the Board’s continued con
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