Smiths Group Plc · LSE:SMIN
Smiths — Shareholder Meeting (November 2013)
14 slides from Smiths's shareholder meeting presentation, Nov 19, 2013
Slide 1: Annual General Meeting 19 November 2013
Annual General Meeting 19 November 2013 investor.relations@smiths.com www.smiths.com
Slide 2: Forward-looking statements
This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst other thin
Slide 3: Philip Bowman, Chief Executive
Philip Bowman Chief Executive Smiths Group plc Annual General Meeting 2013 | 3
Slide 4: Results highlights
Results highlights Reported headline revenue up 2%; underlying up 2% Headline operating profit up 1%, underlying up 1% Headline EPS up 0.1p to 92.7p Cash conversion strong at 98% - free cash flow of £237m Return on capital employed up 10 bps at 16.6% Dividend up 4% to 39.5 pence and special dividend
Slide 5: Key messages
Key messages Group is better positioned today as a result of our initiatives Significantly increased investment in growth drivers Focus on operational efficiencies to fund growth and enhance returns Committed to efficient allocation of capital to drive returns Smiths Group plc Annual General Meeting
Slide 6: Promoting responsibility: An increased focus is delivering improvements
Promoting responsibility: An increased focus is delivering improvements Recordable & lost time incident rates continue to improve Solid progress on environmental targets*** Lost time incident rate Recordable incident rate* • Energy: 19% reduction • Greenhouse gases: Incident rate 27% reduction • Wat
Slide 7: Solid progress on our financial metrics despite tough trading conditions
Solid progress on our financial metrics despite tough trading conditions Five year financial performance Revenue growth CAGR +4% Headline operating margin +230 bps 18.0% Operating cash conversion Average 102% Return on capital +260 bps 16.6% Smiths Group plc Annual General Meeting 2013 | 7
Slide 8: John Crane: Delivering sales growth, improving margins and returns
John Crane: Delivering sales growth, improving margins and returns Underlying revenue Underlying headline profit Headline operating margin +180 bps + 2% + 10% 23.4% • Sales growth driven by oil & gas and chemical • Margins at record highs despite continued investment in first-fit projects, sales & m
Slide 9: Smiths Medical: Tough trading; margins affected by growth investment and device tax
Smiths Medical: Tough trading; margins affected by growth investment and device tax Underlying revenue Underlying headline profit Headline operating margin (130) bps (1)% (7)% 22.2% • Tough trading in developed markets offsets emerging market growth • Consumables flat; hardware down 3% 3 1 • Margins
Slide 10: Smiths Detection: Delivering revenue growth; margins affected by contract issues
Smiths Detection: Delivering revenue growth; margins affected by contract issues Underlying revenue Underlying headline profit Headline operating margin (290) bps + 8% (16)% 10.4% • Revenue growth driven by transportation, ports and borders and military • Margins affected by contract execution chall
Slide 11: Smiths Interconnect: Defence market headwinds; efficiencies drive margins
Smiths Interconnect: Defence market headwinds; efficiencies drive margins Underlying revenue Underlying headline profit Headline operating margin +20 bps (1)% + 3% 14.9% • Sales growth from Connectors offset by Microwave and Power • Margins benefited from on-going productivity initiatives • Connecto
Slide 12: Flex-Tek: Strong growth from Fluid Management and Construction
Flex-Tek: Strong growth from Fluid Management and Construction; margins benefit Underlying revenue Underlying headline profit Headline operating margin +80 bps + 8% + 13% 17.1% • Strong sales growth from aerospace and US residential construction • Margins up 80 bps from higher volumes despite 17% in
Slide 13: Operational priorities for 2014
Operational priorities for 2014 Deliver new product launches to accelerate sales growth Invest in sales and marketing capabilities in high growth markets Seek acquisitions to support growth and improved returns for shareholders Launch new restructuring programme to support increased growth investmen
Slide 14: investor.relations@smiths.com www.smiths.com
investor.relations@smiths.com www.smiths.com