Delivering ‘Our vision, our future’ Full year results for the year ended 31 March 2015 Safe harbour statement The information contained in this presentation may include forward looking statements about e2v’s financial and operational performance and results and the markets in which it operates. These statements can be identified by terminology that includes, without limitation, ‘estimates’, ‘believes’, ‘anticipates’, ‘intends’, ‘expects’, ‘plans’, ‘targets’ and ‘predicts’ and all similar words and statements of a predictive nature. By their very nature, all forward looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the control of e2v. These statements are based on current information, forecasts, expectation and belief and will be subject to variations in these factors as they involve elements of risk and uncertainty. These risks and uncertainties are discussed in detail in e2v’s Annual Report & Financial Statements, announcements to the market and presentations to analysts and investors. Consequently, these variations could cause the actual performance, results and markets to be materially different than those predicted in the forward looking statements. The forward looking statements in this presentation are accurate only as at the date of this presentation and e2v undertakes no obligation to revise or update forward looking statements to reflect subsequent events or circumstances, except as may be required by applicable law and regulation (including Listing Rules). No statement in this presentation is intended to be a profit forecast or be relied upon as a guide to future performance. 2 Agenda Delivering ‘Our vision, our future’ Steve Blair, Group CEO Finance review Charles Hindson, Group FD Business review, vision & outlook Steve Blair, Group CEO Q&A 3 Delivering ‘Our vision, our future’ Focus on customer Goal Customer Focus Operational Excellence Simplification Good progress in year • Change driving improved financial performance • Good cash generation and increased dividend • FY16 outlook unchanged 2020 x2 Bringing life to technology • People Financial Revenue driven growth, trusted expert partner, resilient financial profile 4 Summary financials Year ended 31 March 2015 2014 Change £224.9m £217.7m 3.3% Adjusted* operating profit £40.1m £34.7m 15.6% Adjusted* operating margin 17.8% 15.9% 1.9ppts 24% 25% 13.68p 11.73p Net (borrowings)/cash £(5.2)m £0.8m Cash generated from operations £49.5m £41.1m 20.4% 5.1p 4.4p 15.9% £146m £128m 14.1% Revenue Underlying tax rate Adjusted** earnings per share Dividend Order book – for delivery in next 12 months 16.6% In this presentation: *Adjusted operating profit is before specific items **Adjusted earnings per share (EPS) is before specific items less tax where applicable 5 Finance review – revenue bridge FY15 revenue – growth of 3.3% • Organic revenue profile: o Volumes up 2.2% o FX headwind of 1.6% • Organic growth: o Radiotherapy o Industrial vision • Maintained activity: o Space Imaging o Semiconductors • AnaFocus £5.8m • 12 month order book growth of 14.1% 6 Finance review – operating profit bridge FY15 adjusted operating profit – growth of 15.6% Adjusted operating margin 17.8% (FY14: 15.9%) • Organic growth contribution • Culture improving performance • Regional sales and R&D growth • FX covered by hedging • AnaFocus strong contribution and integrated on time • Specific items include reorganisation costs ROCE 23% (FY14: 22%) 7 Finance review ‐ cash flow bridge FY15 profile Operating cash generation £39.8m AnaFocus £24.5m Financing £21.3m 4.8 Adjusted operating profit Depn, Amort Working capital Less Acquisition Interest, tax & other Dividend Net movement in net debt CAPEX Net borrowing £5.2m FY dividend 5.1p per share 8 Summary divisional performance Imaging RF Power Semiconductors Total * FY15 FY14 FY15 FY14 FY15 FY14 FY15 FY14 £88.7m £81.1m £84.2m £82.3m £52.0m £54.3m £224.9m £217.7m Revenue growth 9.4% 26.0% 2.3% 0.5% ‐ 4.2% 7.7% 3.3% 10.7% Adjusted operating profit £9.3m £11.2m £19.4m £16.1m £11.9m £11.8m £40.1m £34.7m Adjusted operating profit margin 10.5% 13.8% 23.0% 19.6% 22.9% 21.7% 17.8% 15.9% Group revenues 40% 37% 37% 38% 23% 25% Revenue * Divisional performance excludes unallocated corporate centre costs of £0.5m (FY 2014: £4.4m) 9 FY16 selected guidance • Effective tax rate c.26% • Cash conversion c.80% reflecting: o Space and Project Sunrise o Working capital model • FX o Guidance as at current rates o £1.3m of unrecognised losses on balance sheet • H1/H2 weighting likely to be 45:55 revenue split FY16 outlook unchanged 10 Delivering our key metrics Financial metric Objective FY15 Revenue growth GDP + specialist sector and new product growth Execute on organic growth programmes Accelerate with targeted acquisitions in divisions 3.3% Margins Manage to mid teens operating profit margin over the cycle Build margins once effectiveness established 17.8% R&D 90% of R&D customer aligned 86% Cash conversion >80% adjusted operating profit ‐ 2 year recapitalisation phase 99% Use of capital Mid 20% ROCE 23% Net debt Net borrowings/EBITA ≤ 1.25x through acquisition cycle 0.10x Dividends Adjusted earnings cover: c.2.5x 2.7x Acquisitions 3 year Cash Flow Return on Investment > 10% Revenue driven growth, trusted expert partner, resilient financial profile 11 Our three divisions Imaging FY revenues: 40% We add value to our customers through our technology platforms, innovative product development and space qualified manufacturing capability. RF Power FY revenues: 37% We add value to our customers through consistently supplying reliable application specific products, addressing difficult engineering challenges and providing long‐term continuity support. Semiconductors FY revenues: 23% We add value to our customers through our market leading design, packaging and screening technology to meet the demanding specifications that our aerospace and defence customers require, with security of supply. Key Customers Canon, Carl Zeiss, Meditec, Optopol, Orbotech, Basler, ESA, NASA, CNES, CAST, Astrium, Ball Aerospace, Lockheed Martin, Thales, Andor, Hamamatsu, Roper, Runyes Picture of the Churyumov‐Gerasimenko comet taken from our image sensors on Rosetta Eliixa + cameras for industrial inspection systems RF Power components and systems for Elekta cancer radiotherapy equipment Marine radar to avoid collisions at sea Hi reliability semiconductors for safety critical civil aerospace systems Space qualified data convertors for satellite communications Key Customers Accuray, Elekta, Varian, BAE Systems, Furuno, Airbus, Raytheon, Selex Galileo, Thales Strategic Partnerships Freescale, Everspin, Maxim, Micron Key Customers Arrow, Avnet, Boeing, Thales, Raytheon Airbus c.1,700 employees across 8 engineering locations and 5 sales offices 12 Operations review ‐ Imaging FY 15 FY 14 £88.7m £81.1m Revenue growth 9.4% 25.7% Operating profit £9.3m £11.2m Operating margin 10.5% 13.8% Revenue • FY15 delivered • • FY16 objectives • Professional o Organic growth in industrial vision with recent product introductions o Customer pull in barcode scanning o AnaFocus acquisition ‐ strong contribution and integrated on time Space o Strong order book growth with key programme wins o Restructuring with management refresh ‐ Matt Perkins joined in March o Resources focused on delivery have reduced programme margins Professional o Growth from recent product launches o 10 new products planned in FY16 Space o Focus on operational improvement to deliver projects o Secure specific programmes FY16 outlook: Order book underpins anticipated growth 13 Operations review – RF Power FY 15 Revenue FY 14 £84.2m £82.3m Revenue growth 2.3% 0.5% Operating profit £19.4m £16.1m Operating margin 23.0% 19.6% Order book profile £m 120 Full 80 40 0 Mar‐14 Sep‐14 Mar‐15 Mar‐14 Sep‐14 Mar‐15 Base business FY15 delivered FY16 objectives 12 month • Focus on customers with improved delivery performance • Sustained growth in demand from radiotherapy OEMs • Good growth in commercial and industrial in particular marine radar • Cost control and operational improvement delivered margin improvement • Chelmsford site move restarted • Continued market growth in radiotherapy • Established separate units for specialist defence activities Medical FY16 outlook: Modest revenue growth 14 Operations review ‐ Semiconductors Revenue Revenue growth Operating profit Operating margin FY 15 FY 14 £52.0m £54.3m ‐4.2% 7.7% £11.9m £11.8m 22.9% 21.7% • Return of demand for US legacy product lines FY15 delivered • Growth from data converters with new product family launch • Lower revenue in microprocessors and assembly and test services in Europe • Recruitment in the US driving improved distributor base and new product design wins • Revenue growth from strategic partnerships FY16 objectives • Strengthen key relationships with aerospace and defence key accounts • Grow data convertors business • Expand multi‐chip module range FY16 outlook: Modest revenue growth 15 ‘Our vision, our future’ Focus on customer Goal Bringing life to technology Customer Focus Operational Excellence x2 Simplification People 2020 Financial Revenue driven growth, trusted expert partner, resilient financial profile 16 Delivering ‘Our vision, our future’ • Listening to customers is driving innovation • Clarity of communication and consistency of message • Improving delivery performance • Reducing complexity and simplified approvals • Refreshed leadership team, strengthened management team Delivered on our FY15 commitments with upgraded guidance 17 Investment priorities e2v profile Market profile Divisions Imaging RF Power Semiconductors Industrial Vision Space Science Radio‐ therapy RF Defence IPS Commercial and Industrial Modules & ADC, IP partners and distributors Scale Large Medium Specialist Large Large Specialist Large Large Customer base Broad Narrow Narrow Narrow Broad Narrow Broad Broad Growth potential High Medium Low High Low New market Low Medium Margin potential Medium High High High Low/ Medium Medium Low/ Medium High    “Top 3”   Market share Improving Improving Steady Steady Declining New market Declining Improving Margin performance On market Improving to market On market On market On market Dev. phase cost recovery On market Above market Investment priority High High Sustain High Low Sustain Low Medium Driven by customers, markets and opportunities 18 Global end market focus – driving medium term growth FY15 revenues by key global end markets Automation High Healthcare High Medium Communications Low Safety Medium Discovery Environment High 0 20 Revenues £m 40 2/3 organic • Prioritising markets with medium to high potential • Aligning innovation and new product investment with customers 1/3 acquisition • Disciplined approach to M&A 60 Our medium term growth potential Principal end market drivers by division: • Imaging – automation, healthcare, environment & discovery • RF Power – healthcare, automation, safety & communications • Semiconductors – communications & safety 19 Summary & outlook • Good FY15 performance: o Revenue growth of 3.3% o Improved operating margin to 17.8% o Successful AnaFocus acquisition o Full year dividend up 15.9% • Platform for growth: o Reorganisation in hand o 12 month order book up 14% • Outlook for FY16 unchanged Delivering ‘Our vision, our future’ 20 Q&A 21 22