Smiths Group PLC · LSE:SMIN
Smiths — H1 2003 Earnings Presentation
21 slides from Smiths's earnings presentation, Mar 12, 2003
Slide 1: Smiths Group Interim Results 2003
Smiths Group Interim Results 2003 London - Wednesday, 12 March 2003 Register Register here here to to receive receive www.smiths-group.com/ir www.smiths-group.com/ir regular regular information information
Slide 2: Interim results presenters
Smiths Group Chairman speaking Interim results (6 (6 months months ended ended 31 31 January January 2003) 2003) Introduction Keith Orrell-Jones, Chairman Presentation Keith Butler-Wheelhouse, Chief Executive Financials Alan Thomson, Financial Director Smiths Interim 2003 | 2
Slide 3: Key messages from Keith Butler-Wheelhouse
Smiths Group Chief Executive speaking Key messages from Keith Butler-Wheelhouse Smiths Interim 2003 | 3
Slide 4: Highlights of the period
Highlights of the period Operating profits of £180m (before goodwill), down 1% on a year ago EPS of 20.8p: Interim dividend maintained at 8.75p Productivity gains counteract £10m adverse currency and £10m higher R&D Operating cash at 88% of operating profit (after capex), and free ca
Slide 5: Operating performance
Operating performance Reported Reported on on an an FRS17 FRS17 basis basis £m 2003 2002 continuing activities (before (before exceptionals exceptionals and and amortisation) amortisation) (restated) Turnover 1,456 1,479 -2% Operating profit 180 182 -1% Margins 12% 12% Interest & pensions financing
Slide 6: Market and geographical analyses of sales
Market and geographical analyses of sales North North RoW RoW Geographical origin America America of sales (H1/03) 5% 5% (H1/03) 50% 50% Strong growth in Cont. Cont. North America UK UK Europe Europe (US, Mexico, Canada) 27% 27% 18% 18% masked by translation Sales by division Medical Medical Aerospa
Slide 7: Re-focusing Smiths on the best opportunities for growth
Re-focusing Smiths on the best opportunities for growth Finding Finding valuable valuable additions additions to to Getting Getting on on with with the the disposal disposal of of strengthen strengthen the the core core activities activities non-core non-core and and slow slow growth growth business
Slide 8: Financial Director's update
Financial Director’s update Financial Director speaking Currency Op. profit reduced by by £10m (mainly (mainly US$) US$) Restructuring Restructuring £5m £5m charged charged to to trading, trading, no no exceptionals exceptionals R&D R&D Up Up £10m (18%) to £69m (company-funded) (company-funded) Tax
Slide 9: Pensions reporting under FRS17
Pensions reporting under FRS17 (including (including UK, UK, US US funded funded schemes) schemes) Schemes remain substantially well-funded 42% equity funding limits effect of stock market downturn Pension cost under FRS17 increases from £11m to £25m FTSE Surplus/(deficit) Balance Balance shee
Slide 10: Operating profit into operating cash
Operating profit into operating cash £m 2003 2002 continuing activities (restated) Operating profit 180 182 Depreciation 43 44 Capital expenditure (33) (44) Pensions 15 15 Working capital (47) (37) Operating cash-flow 158 160 Op. profit into op. cash 88% 88% Smiths Interim 2003 | 10
Slide 11: Movement in Net Debt
Movement in Net Debt £m 2003 Net Debt at at 1 1 August August 2002 2002 (725) Operating cash (after (after cap-ex) cap-ex) 158 Interest and tax (52) Restructuring (14) Free cash-flow same same as as last last time time 92 Dividends (93) Acquisitions (235) Disposals 151 Financing & Exchange (2) Net c
Slide 12: Smiths Aerospace
contrib. contrib. to Smiths Aerospace to H1/03 H1/03 op. op. profit profit 42% 42% Chief Executive speaking £m (6 (6 months months ending ending 31 31stst January) January) 2003 2002 (restated) (restated) Turnover Turnover 648 648 639 +1% Operating profit 75 70 +8% Margin 12% 11% Overall Overall
Slide 13: Smiths Detection
Heimann Heimann product product range range Smiths Detection Conventional Conventional EDS EDS Continued Continued rapid rapid growth growth of of existing existing business business in in this this period period New New EDtS EDtS Initial Initial TSA TSA requirements requirements will will b
Slide 14: Smiths Medical
Smiths Medical contrib. contrib. to to H1/03 H1/03 op. op. profit profit 20% 20% £m 2003 2002 (restated) (restated) Turnover Turnover 231 231 224 +3% Operating profit 37 43 -15% Margin 16% 19% Other Other specialised specialised Respiratory/ Respiratory/ devices devices and and anaesthesia anaesthes
Slide 15: Medical R&D filling up new product pipeline
Medical R&D filling up new product pipeline Digit Digit BCI’s BCI’s new new finger-tip finger-tip blood/ blood/ oxygen oxygen analyser analyser Portex Portex Saf-T Saf-T Wing Wing Winged Winged needle needle Cozmo Cozmo safety safety device device for for Deltec’s Deltec’s new new blood blood sampli
Slide 16: Sealing Solutions
Sealing Solutions contrib. contrib. to to H1/03 H1/03 op. op. profit profit 23% 23% £m 2003 2002 (restated) (restated) Turnover 397 397 407 -2% Operating profit 41 41 +1% Margin 10% 10% Polymer Polymer John John Crane Crane John John Crane Crane Seals Seals New New oil oil & & gas gas projects p
Slide 17: Industrial
Industrial contrib. contrib. to to H1/03 H1/03 op. op. profit profit 15% 15% £m 2003 2002 (restated) (restated) Turnover 180 180 209 -14% Operating profit 27 28 -5% Margin 15% 13% Interconnect Interconnect Ducting Ducting & & Air Air Movement Movement sold sold (4 (4 months months contribution c
Slide 18: A resilient first half, despite poor market conditions
A resilient first half, despite poor market conditions £m (contribution (contribution to to profit) profit) 2003 2002 Aerospace 75 70 +8% Medical 37 43 -15% Sealing Solutions 41 41 +1% Industrial 27 28 -5% Operating profit 180 182 -1% Smiths Interim 2003 | 18
Slide 19: First half profit progression: 2003 versus 2002
Smiths Group First First half half profit profit progression: progression: 2003 2003 versus versus 2002 2002 Pre-tax H1/02 £168m Pre-tax H1/03 £161m exchange £(10)m £4m M&A £11m pensions interest £(14)m £12m R&D performance £(10)m First Half performance Operating Operating profit profit close close
Slide 20: Second Half outlook
Smiths Group Second Half outlook “ The company’s confidence in the full year outlook is supported by continued progress on productivity and sales in difficult market conditions. These market share gains will not be made at the expense of margins. The spread of activities across different market sect
Slide 21: Audio web-cast and investor registration
This This presentation presentation has has been been audio audio web-cast web-cast and and can can be be viewed viewed at at -- www.smiths-group.com/presentation www.smiths-group.com/presentation Register Register here here to to receive receive www.smiths-group.com/ir regular regular information i