Smiths Group PLC · LSE:SMIN
Smiths — J P Morgan Capital Goods CEO Conference 2009
13 slides from Smiths's conference presentation, Jun 11, 2009
Slide 1: Smiths Group plc: Opportunities to create value
Smiths Group plc Opportunities to create value J P Morgan Capital Goods CEO Conference 11 June 2009
Slide 2: Forward-looking statements
This presentation contains certain forward-looking statements with respect to the operations, performance and financial condition of the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from tho
Slide 3: Smiths Group at a glance
Smiths Group at a glance Smiths Group has five divisions: Smiths Divisional sales % 9 Detection, John Crane, Smiths Medical, £2.3 bn 11 22 Smiths Interconnect and Flex-Tek. Our Smiths Detection businesses are highly competitive, with John Crane Smiths Medical strong technology positions, and operate
Slide 4: Corporate strengths
Corporate strengths • Global quality brands recognised by our customers • Markets with long-term underlying defensive qualities – Security, energy, communication and healthcare • Product engineering: practical application of advanced proprietary technology • Lean and global manufacturing capability
Slide 5: Opportunities to create value – key steps
Opportunities to create value – key steps Restructuring initiatives are already delivering savings Restructuring Restructuring 9 • Planned £47m annualised savings • £8m delivered to date Made good progress with the deployment of better Better Better systems systems 9 business systems Portfolio profi
Slide 6: Opportunities to create value – key steps
Opportunities to create value – key steps Extended our portfolio and presence through ten acquisitions Acquisitions Acquisitions 9 • Five in Asia Pacific Increased Increased R&D R&D 9 Increased R&D to drive future growth Established medium-term divisional targets and new 9 Targets/ Targets/ incentiv
Slide 7: Smiths Detection: A global leader with strong technology
Smiths Detection: A global leader with strong technology Sales Headline operating profit 2008 FY 2008 sales 22% of Sales 400 100 by sector 300 80 £509m 200 60 Transportation 40 Operating profit 100 20 Critical infrastructure £93m 0 2005 2006 2007 2008 0 Ports & borders Military Emergency responders
Slide 8: John Crane: A strong global brand and business model
John Crane: A strong global brand and business model Sales Headline operating profit 20092008 H1 Sales FY 2008 sales 27%£393m of Sales 600 120 100 by sector 500 6% growth £626m 400 80 60 300 Petrochemical 40 Operating profit 200 100 20 Chemical/Pharmaceutical £104m 0 2005 2006 2007 2008 0 Commercial
Slide 9: Smiths Medical: Driven by demographics and technology
Smiths Medical: Driven by demographics and technology Sales Headline operating profit 20092008 H1 Sales 800 200 FY 2008 sales 31%£393m of Sales by sector 600 150 6% growth £703m 400 100 Medication Delivery Operating profit 200 50 Vital Care £140m 0 2005 2006 2007 2008 0 Safety Devices Long-term mark
Slide 10: Smiths Interconnect: Good growth from military; wireless slower
Smiths Interconnect: Good growth from military; wireless slower Sales Headline operating profit 20092008 H1 Sales 250 100 FY 2008 sales 11%£393m of Sales 200 80 by sector 6% growth £261m 150 60 100 40 Military/Aerospace Operating profit 50 20 Wireless £54m 0 2005 2006 2007 2008 0 Medical Other Long-
Slide 11: Flex-Tek: Leveraged for a recovery in US housing
Flex-Tek: Leveraged for a recovery in US housing Sales 20092008 H1 Sales 250 FY 2008 sales 9% £393m of Sales 200 by sector 6% growth £206m 150 100 Housing Operating profit 50 Appliances £24m 0 2005 2006 2007 2008 Aerospace Medical General Industry Long-term market drivers: • US residential construct
Slide 12: Smiths Group: Opportunities to create value
Smiths Group: Opportunities to create value Portfolio well-placed to withstand pressures of a downturn Expand margins through a programme of self-help Deliver restructuring programmes to improve margins Upgrading our business systems to drive faster data-based decisions Revenue growth opportunities
Slide 13: Questions
smiths bringing technology to life Questions
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