Smiths Group Plc · LSE:SMIN
Smiths — Shareholder Meeting (November 2011)
14 slides from Smiths's shareholder meeting presentation, Nov 22, 2011
Slide 1: Annual General Meeting 22 November 2011
Annual General Meeting 22 November 2011 Bringing technology to life 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: Introduction
Introduction Philip Bowman Chief Executive Smiths Group plc AGM 2011 | 3
Slide 4: Results highlights
Results highlights Reported sales up 3%; underlying up 1% Headline operating profit up 5%, underlying up 4% Margins improve 40 basis points to 18.2% Headline EPS up 10% to 92.7p Cash conversion strong at 95% - in line with guidance Dividend up 7% to 36.25 pence Return on capital employed up 40 basis
Slide 5: Safety remains our top priority
Safety remains our top priority, resulting in continued improvement Recordable & lost time incident rates have improved Lost time incident rate Recordable incident rate * Incident rate * 2004 2005 2006 2007 2008 2009 2010 2011 Financial Year Smiths Group plc AGM 2011 | 5
Slide 6: Creating shareholder value through long-term profitable growth
Creating shareholder value through long-term profitable growth Sales growth (£m) Delivering growth • Exposure to markets with long-term growth characteristics • Strong blend of technology businesses and markets • Investment in growth opportunities – R&D, network expansion in emerging markets and bol
Slide 7: Creating shareholder value through long-term profitable growth
Creating shareholder value through long-term profitable growth Strong cash conversion (%) Focus on cash and balance sheet • Strong cash characteristics and low capital investment requirements • Robust balance sheet management to fund our investment plans Enhancing returns (%) High returns on capital
Slide 8: Smiths Detection: Variable order flow has affected sales
Smiths Detection: Variable order flow has affected sales • Underlying sales down 13%; margins down 290bps to 12.8% • Transportation affected by budgetary and regulatory delays • Military slowdown reflects switch to next generation detector • Performance improvement programme targets £40m savings • S
Slide 9: John Crane: Delivering sales growth, improving margins and returns
John Crane: Delivering sales growth, improving margins and returns • Underlying sales up 13%; margins up 40bps to 21.1% • Aftermarket service revenues grew 13% • First-fit original equipment sales up 14% • Expanding our global network: sales and service centres • Acquisition of TCE: aftermarket serv
Slide 10: Smiths Medical: Delivering margin growth in a challenging environment
Smiths Medical: Delivering margin growth in a challenging environment • Underlying sales down 3%; margins up 190bps to 23.4% • Portfolio profitability review constrained growth • Tough operating environment for medical devices • Good progress on new product launches • Investing in emerging market ex
Slide 11: Smiths Interconnect: Delivering growth despite defence pressures
Smiths Interconnect: Delivering growth despite defence pressures • Underlying sales up 3%; margins down 40bps to 17.8% • Reported sales up 12% benefiting from IDI acquisition • Slowdown in military demand during the second half • Strong sales of connectors and wireless telecom products • Acquired PD
Slide 12: Flex-Tek: Margins benefit from operational leverage
Flex-Tek: Margins benefit from operational leverage • Underlying sales up 6%; margins up 140bps to 12.5% • Margins benefit from higher volumes and cost savings • Strong growth in aerospace – gained share in servicing • US residential construction/appliance markets difficult • Making progress through
Slide 13: Operational priorities for 2012
Operational priorities for 2012 Deliver the performance improvement programme benefits in Smiths Detection Launch new products from the divisional pipelines to drive top-line growth Drive benefits from remaining restructuring initiatives Sustain strong cash conversion Seek and evaluate opportunities
Slide 14: Annual General Meeting 22 November 2011
Annual General Meeting 22 November 2011 Bringing technology to life investor.relations@smiths.com Smiths Group plcwww.smiths.com AGM 2011 | 14