Full year results for the year ended 31 March 2016

Delivering ‘Our vision, our future’

Safe harbour statement

The information contained in this presentation may include forward looking statements about e2v’s financialand 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 apredictive nature.

By their very nature, all forward looking statements involve risk and uncertainty because they relate to futureevents and circumstances that are beyond the control of e2v.

These statements are based on current information, forecasts, expectation and belief and will be subject tovariations in these factors as they involve elements of risk and uncertainty. These risks and uncertainties arediscussed in detail in e2v’s Annual Report & Financial Statements, announcements to the market andpresentations 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 ande2v undertakes no obligation to revise or update forward looking statements to reflect subsequent events orcircumstances, except as may be required by applicable law and regulation (including Listing Rules). Nostatement in this presentation is intended to be a profit forecast or be relied upon as a guide to futureperformance.

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Agenda

Highlights Steve Blair, Group CEO

Finance review Charles Hindson, Group FD

Business update & outlook Steve Blair, Group CEO

Q&A

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FY16 highlights

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FY16  ‐ good financial performance revenue growth 5.1% 

adjusted operating profit up 4.7%, despite FX headwind

Dividend up 5.9%

Progress on ‘Our vision, our future’

Solid platform for growth

Revenue driven growth, trusted expert partner, resilient financial profile

Basis of preparation:*Adjusted operating profit is before specific items**Adjusted earnings per share (EPS) is before specific items less tax where applicable*** Revenue at FY15 rates, adjusted operating profit at FY15 rates before FX gains and losses

Financial summary

Year ended 31 March Reported At constant FX***

FY16 FY15 Change FY16 FY15 Change

Reported revenue £236.4m £224.9m 5.1% £230.6m £224.9m 2.5%

Adjusted* operating profit £42.0m £40.1m 4.7% £44.7m £36.7m 21.8%

Adjusted* operating margin 17.8% 17.8% ‐ 19.4% 16.3% 310bps

Adjusted* profit before tax £40.8m £39.0m 4.6%

Adjusted** earnings per share 14.59p 13.68p 6.7%

Dividend 5.4p 5.1p 5.9%

Net borrowings (£21.1m) (£5.2m) (£15.9m)

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Finance review – revenue bridge

Organic revenue  Growth:

Industrial vision Space Radiotherapy

Lower activity: RF defence Semiconductors

Net acquisitions: AnaFocus + £4.4m SP Devices  + £0.6m Thermal imaging  ‐ £2.4m

FX benefit of 2.4%

FY16 revenue (£m) – growth of 5.1%

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Organic £3.2m Net M&A £2.6m

Finance review – operating profit bridge

Organic growth contribution

Cost profile discipline Good cost control Used flexibility Benefit of reorganisations

AnaFocus met earn‐out targets

FX swing £5.5m FX losses £2.1m (FY15 gain £3.4m) 

FY16 adjusted operating profit of £42.0m ‐ growth of 4.7%

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Growth  (£5.1m): Imaging inventory (£3.0m) Trade receivables (£2.1m)

Reorganisation and cost flex (£6.5m) Customer focus (£5.2m):

Securing supply chains for customers (£1.9m) Support Q4 deliveries (£0.6m) Delivery on programmes (£2.7m)

Finance review ‐ cash flow bridgeFY16 profile

Operating cash generation £20.9m Financing (£27.8m)

Adjusted operating profit

Working capital

Interest, tax & other

Dividend Increase in net borrowings

Net M&A (£9.0m)

M&A net of disposals

Depn, amort

less CAPEX

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CAPEX reduced in Q4 Acquisition(£13.0m):

Net M&A (£9.0m) Product line acquisitions (£4.0m) 

Other Purchase of own shares (£3.7m)

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FY17 selected guidance

c.£14m CAPEX > c.£11m depreciation Effective tax rate c.29%  Re‐classification of R&D tax credits

CAPEX & tax

FX

Profile

Outlook based on March 2016 rates FX revenue tailwind of c.7%, adjusted profit tailwind of c.4%

H1/H2 split expected to be in line with FY16 Rebuild flexibility and benefit of reorganisation  Improve working capital Available debt capacity for acquisitions (up to 1.5x) FY17 outlook unchanged

Financial metric Objective FY16 FY15

Revenue growthGDP + specialist sector and new product growthExecute on organic growth programmesAccelerate with targeted acquisitions in divisions

5.1% 3.3%

Margins Manage to mid teens operating profit margin over the cycleBuild margins once effectiveness established 17.8% 17.8%

R&D 90% of R&D customer aligned 87% 86%

Cash conversion >80% adjusted operating profit ‐ 2 year recapitalisation phase 50% 99%

Use of capital Mid 20% ROCE 20% 23%

Net debt Net borrowings/EBITDA ≤ 1.5x through acquisition cycle 0.40x 0.10x

Dividends Adjusted earnings cover: c.2.5x 2.7.x 2.7x

Acquisitions 3 year Cash Flow Return on Investment > 10%

Key metrics

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Revenue driven growth, trusted expert partner, resilient financial profile

StatusH2 FY16   objectives

Professional Gained traction from new products in industrial vision and data collection systems AnaFocus grew revenue from new products and custom programmes

Space  Stepped up delivery on existing programmes Delivered operational improvement Secured specific programmes for FY17

FY17 objectives

Professional Grow revenue from new products and markets in industrial vision and sensors AnaFocus continue to grow custom design programmes and sensor sales 

Space  Continue to focus on operational improvement Secure follow‐on orders for specific programmes for FY17 delivery

Imaging

11Growth focus: Industrial Imaging and Space

FY16 FY15 Change

Revenue £103.5m £88.7m 16.7%

Operating profit £15.7m £9.3m 68.8%

Operating margin 15.2% 10.5% 470bps

StatusH2 FY16 objectives

Radiotherapy renewed customer contract in Q4 Completed the current defence reorganisation Delivered against specific defence programmes

FY17 objectives

Continue to support our radiotherapy OEMs  Ongoing reorganisation of Chelmsford site Grow Lincoln defence activities from existing programmes Secure specific defence programmes

RF Power

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Growth focus: Radiotherapy

FY16 FY15 Change

Revenue £80.5m £84.2m ‐4.4%

Operating profit £18.7m £19.4m ‐3.6%

Operating margin 23.2% 23.0% 20bps

StatusH2 FY16 objectives

Completed acquisition of SP Devices and partnership with Peregrine  Secured orders for H2 delivery Engaged with customers as a key partner Built order book for FY17

FY17objectives

Secure orders for within year delivery Grow revenue from Peregrine and other product line acquisitions  Microprocessors higher revenue in H2, underpinned by last time buy Integrate SP Devices and delivery of first year plan

Semiconductors

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Growth focus: Modules, signal path, IP partners 

FY16 FY15 Change

Revenue £52.4m £52.0m 0.8%

Operating profit £14.2m £11.9m 19.3%

Operating margin 27.1% 22.9% 420bps

Focus on our foundations

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Customer Focus

• Listening to customers to drive innovation

OperationalExcellence

Simplification

People

Financial

• Key customers trusting us as partners 

• Improved customer ratings and feedback

Next steps

• Increase customer intimacy

• Broaden strategic customer base 

• Improved delivery performance

• Margin improvement in all three divisions

• Ongoing operational improvement in Space

• Focus on process effectiveness• Reduce inventory cycle time

• Clarity of communication and consistency of message

• Reducing complexity and simplified approvals

• Divisions with end to end P&L responsibility

• Portfolio optionality 

• Refreshed leadership team, strengthened management

• Developing  talent • Leverage best practice and team work across Group

• Acquisition and integration of AnaFocus

• Acquisition of SP Devices

• Good financial performance in challenging markets

• Continue to build acquisition pipeline

Progress in first year Progress in second year

In all that we do:  “Does this drive growth?”

Divisions Imaging RF Power SemiconductorsIndustrial Vision Space  Radiotherapy Modules & ADC, IP 

partners and distributors

Discretionary R&D(% sectorrevenue)

8% 4% 5% 11%

Acquisitions  AnaFocus SP Devices/PLAs*

Investment priorities to drive growth – 79% Group revenues (FY14: 72%)

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Driven by customers, markets and opportunities

Investmen

t

*Product Line Acquisitions

Four areas of focus 89% of Group R&D focused in chosen areas delivering growth Two acquisitions completed in Industrial Vision and Semiconductors

0 20 40 60

Environment

Discovery

Safety

Communications

Healthcare

Automation

FY16 FY15

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FY16 & FY15 revenues by key global end‐markets

High

High

Medium

Low

Medium

High

e2v medium term growth potential

Current profile

Challenging markets: Taking market share through 

innovation/service Making new markets through new 

product introductions Continuing corporate change Increased focus on acquisitions

Global end market focus 

Principal end market drivers by division: Imaging – automation, healthcare, environment & discovery RF Power – healthcare, automation, safety & communications Semiconductors – communications & safety

£m

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Geographic reach

FY16 revenues by geography £mFY15 revenues by geography £m

Growth coming from Asia Pacific (20%)

£32.9

£63.6

£77.1

£47.4

£3.9

£32.4

£64.4

£77.1

£56.9

£5.5

United Kingdom Europe North America Asia Pacific Rest of world

Growth 5.1%

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FY17 Divisional overview

Imaging

Professional imaging growth: make new markets, take market share.  Focus on key market leaders/OEMS

Space: embed operational improvement, with ongoing margin improvement

RF Power Gradual growth in Radiotherapy, OEM customers 

focused on value

Semiconductors Product line acquisitions and micro last time buys                  

Cards, subsystems and IP moving up the value chain

FY17 view

Good growth

Steady

Step‐up

Summary & outlook

FY17 outlook unchanged

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Revenue driven growth, trusted expert partner, resilient financial profile

Performance

Growth

Outlook

FY16 performance:

Reported revenue growth of 5.1%

Adjusted operating profit up 4.7%

Full year dividend up 5.9%

Platform for growth:  Focus on take/make market in challenging markets

Investment in R&D in areas of focus

Cost profile discipline and benefit of reorganisations

SP Devices and building acquisition pipeline

Q&A

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Appendices

‘Our vision, our future’

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Our three divisions

Imaging FY16 revenues: 44%We add value to our customers through our technology platforms, innovative product development and space qualified manufacturing capability.

RF Power FY16 revenues: 34%We add value to our customers through consistently supplying reliable application specific products, addressing difficult engineering challenges and providing long‐term continuity support.

SemiconductorsFY16 revenues: 22%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.

Selected customersAccuray, Elekta, Varian, BAE Systems, Furuno, Airbus, Raytheon, Selex Galileo, Thales

Selected customersCanon, Carl Zeiss Meditec, Optopol, Orbotech, Basler, ESA, NASA, CNES, CAST, Astrium, Ball Aerospace, Lockheed Martin, Thales, Oxford Instruments, Hamamatsu, Roper 

Strategic partnershipsFreescale, Everspin, Maxim, Micron, Peregrine

Selected customersArrow, Avnet, Boeing, Thales, Raytheon, Airbus

Eliixa + cameras for industrialinspection systems

RF Power components and systems for  Elekta cancer radiotherapy  equipment 

Space qualified data convertors for satellite communications 

Hi reliability semiconductors for safety critical civil aerospace systems

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Marine radar to avoid collisions at sea

c.1,750 employees across 9 engineering locations and 6 sales offices 

Picture of the Churyumov‐Gerasimenko comet taken from our image sensors on Rosetta

Summary divisional performance

Imaging RF Power Semiconductors Total

FY16 FY15 FY16 FY15 FY16 FY15 FY16 FY15

Revenue £103.5m £88.7m £80.5m £84.2m £52.4m £52.0m £236.4m £224.9m

Revenue growth 16.7% ‐4.4% 1.0% 5.1%

Adjusted operating profit £15.7m £9.3m £18.7m £19.4m £14.2m £11.9m £42.0m* £40.1m*

Adjusted operating profit margin

15.2% 10.5% 23.2% 23.0% 27.1% 22.9% 17.8%* 17.8%*

Group revenues 44% 40% 34% 37% 22% 23%

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*Includes Corporate centre costs of £4.5m (FY15: £4.0m) and FX losses of £ 2.1m (FY15 gains £3.4m)

Platform for further expansion

Making it realEmbed new culture 

Operational excellenceGroup

Imaging

RF Power

Semiconductors

2015 2016 2017 2018 2019 2020

Industrialproduct 

introductions

Spaceproject activity

Sub‐systems growth

Partners & modules

Goalx2             2020

Key priorities

Our journey from November 2014

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