Smith & Nephew Plc · LSE:SN.
Smith & Nephew — Investor Day (2015)
96 slides from Smith & Nephew's investor day presentation, 2015
Slide 1: Advanced Wound Management Capital Markets Event
Advanced Wound Management Capital Markets Event
Slide 2: Forward looking statements
Forward looking statements This document may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected revenue growth and trading margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "in
Slide 3: Agenda
Agenda 13:30 Welcome by Olivier Bohuon Presentations: Today’s Challenges in Wound Management Prof. Marco Romanelli, MD PhD Director Wound Healing Research Unit, University of Pisa Global Wound Market and Smith & Nephew Strategy Glenn Warner President, Advanced Wound Management Adopting PICO™ for Inc
Slide 4: Our journey to higher growth
Our journey to higher growth 2011* Future Lower Higher Growth Growth 65% 67% Improving Strengthening Creating Higher Lower Growth Growth Proportion of Revenue 35% 33% Higher Growth: Sports Medicine Joint Repair, ArthroCare, Trauma & Extremities, Gynaecology, Advanced Wound Bioactives and Devices, Em
Slide 5: Uniquely positioned for market leadership
Uniquely positioned for market leadership Smith & Nephew revenue split* Advanced Wound Management Hips & Knees 31% AWB Collagenase SANTYL™ Ointment Enzymatic debrider 8% Other Group franchises AWD Sports Medicine 25% 4% Other Surgical PICO™ Negative Pressure Wound Therapy AWC Trauma 4% 17% 11% Sourc
Slide 6: Slide 6
Slide 7: Supporting healthcare professionals for over 150 years
o/. ° 7.4 smith&nephew Supporting healthcare professionals for over 150 years
Slide 8: Global Wound Market and Smith & Nephew Strategy
Global Wound Market and Smith & Nephew Strategy
Slide 9: Glenn Warner, President AWM
Glenn Warner, President AWM Joined Smith & Nephew in 2014 Relevant Experience • 28 years medical device , pharmaceutical, biologics experience • Significant international experience; leadership positions in Europe, SE Asia and Japan. • AbbVie, Abbott, TAP Pharmaceuticals 9
Slide 10: Global Wound Management Overview
Global Wound Management Overview Revenue & share by segment • Sutures/staplers Surgical • Sealants, adhesives • Hemostasis • Bandages Advanced Surgical Basic • Compresses • Tapes/Gauze > $20 billion • Dressings Smith & Nephew • Devices Mid-Tier A commercial solution for emerging markets Emerging Mar
Slide 11: Global Advanced Wound Management
Global Advanced Wound Management Only S&N competes in all 3 categories Revenue share by category S&N Share Key Competitors 32% Bioactives 13% 11% Wound $8.1 billion Devices Care 3 – 4% CAGR 22% 65% 17% Source – internal model; US$, rolling 4-quarters to Q2 2015. Advanced + Mid-Tier Source: Internal
Slide 12: Global Advanced Wound Management
Global Advanced Wound Management Strong Geographical Position Revenue share by region S&N Market Position Emerging Markets Europe #1 22% Emerging * Japan, North #1 Australia, Asia Pac* $8.1 billion Markets 5% America New 3 – 4% CAGR 42% Asia Zealand #1 Pacific* Europe North 31% #2 America Source – i
Slide 13: Significant unmet need → significant opportunity
Significant unmet need → significant opportunity No Physician Specialty Wound care remains attractive…. • Large and growing market • Significant unmet need • Primed for innovation and better solutions Diagnostics/ Modest Guidelines Evidence But the industry needs to deliver… Lacking INCONSISTENT OUT
Slide 14: Core strengths position Smith & Nephew to lead
Core strengths position Smith & Nephew to lead 1 Product Portfolio 3 Evidence Based Broad & Diverse Portfolio Raising Standards for Clinical Evidence Trusted & High Quality Brands Investing in Real-World Evidence 2 Medical Education 4 Innovation Improving Outcomes Through Education Strong, Different
Slide 15: We are evolving beyond just a product focus
We are evolving beyond just a product focus…. Leverage Focus on Growth Lead in Integrated Cornerstone Portfolio Brands Solutions 15
Slide 16: AWC Growth Driver: ALLEVYN Foam Dressings
AWC Growth Driver: ALLEVYN™ Foam Dressings What is it? • ALLEVYN absorbs wound exudate, an essential step towards healing • Unique design reduces pressure on at-risk skin; lowering risk of ulceration • Unique design leads to longer wear times ALLEVYN Value Proposition Growth Drivers • Patient-centri
Slide 17: AWD Growth Driver: PICO System
AWD Growth Driver: PICO™ System What is it? Single-use Negative Pressure Wound Therapy (NPWT) • Effectiveness of traditional NPWT in a modern, small portable system1 • Designed for both open wounds and closed incisions • Leverages our leading dressing technology • S&N in first mover position with be
Slide 18: Surgical complications for high risk patients
Surgical complications for high risk patients C-sections CABG • UK patients experiencing a surgical site infection (SSI)1 • 3-4% sternal incisions complicated by infection4 • 1 in 5 with body mass index (BMI) >35 • 1 in 7 diabetics • Infection can increase hospital • 1 in 10 overall stay from 7 to 2
Slide 19: PICO proven to minimize surgical site complications
PICO™ proven to minimize surgical site complications 29 papers published to date, 18 for closed incisions C-sections • Use of PICO eliminated readmissions for wound complications in patients with BMI>35 1 • 0.4% infections in patients >35 BMI treated with PICO™ vs. 3.6% patients with < 35 BMI not tr
Slide 20: AWD Pipeline: RENASYS TOUCH Connect
AWD Pipeline: RENASYS™ TOUCH* Connect What is it? Negative pressure wound therapy that incorporates wireless technology and digital interface to deliver efficient, personalized treatment in highly exuding wound types Product Value Proposition RENASYS™ TOUCH RENASYS™ TOUCH Connect • User-friendly tou
Slide 21: Phased launch plan for RENASYS TOUCH
Phased launch plan for RENASYS™ TOUCH 2015 RENASYS™ TOUCH CE approved Pilot Launch Pilot Launch RENASYS™ TOUCH Connect CE approval RENASYS™ TOUCH 510(k) approval Pilot Launch Pilot Launch RENASYS™ TOUCH Connect 510(k) approval Estimates only, launches may vary based on review time of regulatory bodi
Slide 22: AWB Growth Driver: Topical Bioactives
AWB Growth Driver: Topical Bioactives Bioactive Growth Drivers • Biopharmaceuticals designed to stimulate the body’s own regenerative processes • The fastest growing segment in chronic wound care • S&N well positioned with focus on generating relevant clinical evidence and specialized sales force SA
Slide 23: The best treatment portfolio by design
The best treatment portfolio by design T I M E dge of wound issue nonviable nfection or oisture non-advancing or deficient inflammation imbalance or undermined PICO™ RENASYS™ TOUCH 23
Slide 24: A broader view provides a larger opportunity
However a broader view provides a larger opportunity… Treatment Wound bed prep, healing Opportunity for solutions across the disease management continuum Care Coordination & Prevention Diagnosis/ Treatment Data Driven Monitoring Detection Healthcare Efficient Patient engagement Right treatment, righ
Slide 25: Disease lens leads to better outcomes at a lower cost
Disease lens leads to better outcomes at a lower cost… Focused on opportunities where: • Smith & Nephew has a right to win • Evidence of market readiness • Innovation opportunities Wound care “diseases” Venous leg ulcers Pressure Ulcers Diabetic Foot Ulcers Surgical incisions Burns 25
Slide 26: …and larger revenue potential
…. and larger revenue potential Annual wound care costs in the United States4 Diabetic foot ulcers (DFUs) 1 $9.1bn to $13.2bn Annual treatment costs . All care settings, all payers Estimated at Venous leg ulcers (VLUs) 2 $14.9bn to $17.4bn >$33 Annual treatment costs. All care settings, all payers b
Slide 27: Disease lens is driving our view of innovation
Disease lens is driving our view of innovation Diagnosis Care Coordination Data Driven Prevention Treatment & Monitoring & Detection Healthcare • Deep tissue injury • Point of care • Healing technologies • Clinical algorithms • Best-in-class detection diagnostics medical education • Bioactive debrid
Slide 28: External innovation model with strong internal development emphasis
External innovation model with strong internal development emphasis External Internal Research and Relative R&D Research & Discovery Development Investment Breakdown Human Proof of Concept Product Clinical Discovery Research Development Development • Tech Scouting • Innovation • Engineering • Clinic
Slide 29: Well positioned to outgrow the overall wound market
Smith and Nephew is well positioned to outgrow the overall wound market Well Positioned Attractive Market Growth Opportunity Broad, Diverse Portfolio Large & Growing Increase Share Trusted Brands Significant Unmet Needs Invest in New Models and Global Reach Under Penetrated Approaches Focused Innova
Slide 30: The broadest portfolio by choice
The broadest portfolio by choice Advanced Wound Care (AWC) Exudate Management Infection Management Cornerstone ALLEVYN™ Life & Classics ACTICOAT™ IODOSORB™ OPSITE™ IV3000™ PROFORE™ DURAFIBER™ DURAFIBER™ Ag SECURA™ JELONET™ CICA-CARE™ Advanced Wound Devices (AWD) Advanced Wound Bioactives (AWB) NPWT
Slide 31: Supporting healthcare professionals for over 150 years
o/. ° 7.4 smith&nephew Supporting healthcare professionals for over 150 years
Slide 32: Adopting PICO for Incision Management of High Risk Patients
Adopting PICO™ for Incision Management of High Risk Patients Miss Narmada Katakam Consultant Obstetrician and Gynaecologist Reproductive Health Group Reproductive Health Group
Slide 33: Disclosure of Interests
Disclosure of Interests Provide Speaker services to Smith & Nephew Reproductive Health Group
Slide 34: Contents
Contents Caesarean Section – Wound Infection Facts Wound complications – Impact on new mothers and the NHS Reason behind the change in our clinical practice Developing 10-Step Pathway – Engaging Clinical teams and Management Why PICO™? 2 Audit results Reproductive Health Group
Slide 35: Caesarean Section
Caesarean Section Caesarean section (CS) Most common major operation performed on women in the world. 9% in 1980 26.2% in 2014 Maternity statistics 2014 – England Reproductive Health Group
Slide 36: Obesity
Obesity Obesity has become a global pandemic Number of obese pregnant woman from last 5 years’ statistics BMI > 35 = 15-20% National Institute for Health and Clinical Excellence (NICE) Reproductive Health Group
Slide 37: Obese Women - Why Higher Risk Of Wound Infection?
Obese Women - Why Higher Risk Of Wound Infection? Reduced blood supply to the fat tissue. Results in slower wound healing. Adipose or fatty tissue also increases risk of Wound haematoma i.e. blood collection in the wound Leading to wound infection and breakdown. Reproductive Health Group
Slide 38: Facts
Facts * 2.6 to 5 % of surgeries result in Surgical Site Infection (SSI) Most of the SSI are caused by endogenous bacteria Reducing microorganisms on the skin will address this factor – therefore skin prep is important * Centre of Disease control and Institute of Healthcare Improvement - USA Repro
Slide 39: Infection Rate
Infection Rate It is very difficult to assess true CS wound complications rate Royal College of Obstetricians and Gynaecologists - 6% National Institute for Health and Clinical Excellence (NICE) - 8% Multicentre study (Wloch et al., 2012) - 9.6% Reproductive Health Group
Slide 40: Hospital – Community
Hospital – Community Almost all infections are diagnosed after the patients are discharged home Hospitals - Underestimate the scale of the problem In the Community, care is not standardised Lack of surgical training in wound care management Reproductive Health Group
Slide 41: Reality
Reality Given the number of women delivering by CS in the UK, substantial costs are incurred as a result of these infections. Prevention of these infections should be a clinical and public health priority. Reproductive Health Group
Slide 42: Tip of the Iceberg
Tip of the Iceberg Many hospitals will not know if they have a problem with CS SSI, as surveillance data is not mandatory. CS SSI causes a considerable impact on the mother and baby bonding. Reproductive Health Group
Slide 43: Wound Complications - Impact
Wound Complications - Impact On women After a C Section, the last thing a woman wants to discover when she gets home is that she has a wound infection – at the same time as having to care for her newborn. On NHS Readmission average cost – £1,050 Reproductive Health Group
Slide 44: Total Deliveries CS Rate
Total • 645,000 Deliveries CS Rate • 170,00 26.2% 0 BMI > 35 • 34,000 = 20% SSI in • 68 BMI > 35 00 = 20% 6800 x • £7,140, 1050 = 000 Reproductive Health Group
Slide 45: Bolton – The Reasons Behind The Change
Bolton – The Reasons Behind The Change December 2011 – 3 cases of broken down wounds Initial audit in Feb 2012 - 33% wound infection rate One or two changes are not going to bring this rate down. Difficult to identify and pinpoint exact source of infection Where do we start? Reproductive Health
Slide 46: And So We Did!
And So We Did! • We decided to address the issues at every step of patients’ journey • Home to Ward to Theatre to Ward and finally back Home Reproductive Health Group
Slide 47: 10-Step Bundle at Bolton
10 – Step Bundle at Bolton 1 Refrain from hair removal around the surgical site in the last weeks preceding the delivery 2 Have a bath or shower before the C Section in the morning WHO Surgical Safety Checklist - Surgical Site Infection (SSI) control 3 ☐ Antibiotics prophylaxis in last 60 minutes ☐
Slide 48: Specific to High Risk Women
Specific to High Risk Women Specific measure for high risk woman i.e. BMI > 35 PICO™ Diabetes Previous CS SSI Using PICO™ dressing Change in skin closure material and technique 15 Dressings trialled in October 2012 – 0% infection Reproductive Health Group
Slide 49: Aspirations – Outcomes
Aspirations – Outcomes Divisional Board Meeting – Business Case - June 2013 Reproductive Health Group
Slide 50: Projected Savings by Using PICO
Projected Savings by Using PICO™ • Business case • Adopting a patient-centred approach • Using PICO™ on high-risk patients • No extra cost to the Trust – Spend to Save • Reduce readmissions and repeat surgical interventions • Release bed days for new mothers helping with capacity Reproductive Health
Slide 51: Engaging Clinical and Management Teams
Engaging Clinical and Management Teams Stakeholders Obstetric Theatre Scrub Hospital Community Wound Care Lead Midwife Doctors Nurses Midwives Midwives Clinic Identify Review Infection high risk PICO™ Monthly PICO™ Control database patients Training Champi Advanced Leaflet ons Midwifery One to Pract
Slide 52: Re-audit of CS SSI and Audit of PICO
1. Re-audit of CS SSI (104 Cases) 2. Audit of PICO™ (207 Cases) Reproductive Health Group
Slide 53: Re-Audit Of Surgical Site Infection Following Caesarean Section
Re-Audit Of Surgical Site Infection Following Caesarean Section November 2014 Reproductive Health Group
Slide 54: Overall rate of CS SSI
Overall rate of CS SSI - 9.6% BMI > 35 - 19.28% DM - 15.6% Reproductive Health Group
Slide 55: Wound Classification
Wound Classification Wloch et al., 2012 Reproductive Health Group
Slide 56: Developing a national guideline for preventing post-Caesarean infection
Kg Key Opinions in Medicine SPEAKERS Mr Simon Tyrrell, Consultant in Obstetrics and Gynaecology, Medical Director, Hull and East Yorkshire Hospitals NHS Trust (Chair) Mr Sean Burns, Consultant Obstetrician, Wrightington, Wigan and Leigh NHS Foundation Trust Volume 1, Issue 1, November 2014 Key Opini
Slide 57: Summary of key consensus opinions
Box 2. Summary of key consensus opinions emerging from the meeting Hospital systems © Individual units should develop their own standards of practice and work to improve the competence of all staff Pre- and intraoperative care Women should be advised to clip rather than shave or wax hair prior to Ca
Slide 58: CS Audit Summary – 104 Cases
CS Audit Summary – 104 Cases 35% 33% 30% 25% 20% 14.7% 15% Feb-12 10% Nov-14 5% 3% 1.8% 3% 1.8% 0% SSI Readmission Return to theatre Reproductive Health Group
Slide 59: Infection Bundle
Infection e Bundle The Women’s Health Patient Safety Day Friday 16 October 2015 Venue: RCOG, London Programme rebbeurnpireat| 4182858) pararraer para | Royal College of Obstetricians & Gynaecologists Reproductive Health Group
Slide 60: What Makes Us Believe That PICO Has An Important Role?
What Makes Us Believe That PICO™ Has An Important Role? Audit of PICO TM Reproductive Health Group
Slide 61: Evidence From 207 Cases of PICO
Evidence From 207 Cases of PICO™ Royal Bolton Hospital 2015 14.0% 12.6% 11.5% 12.0% 10.0% 8.0% 6.0% 4.5% 4.0% 2.0% 0.0% BMI > 35 Diabetes Previous SSI Readmission rates (3% Vs. 1.9%) Return to theatre rate (3% Vs. 0.5%) Reproductive Health Group
Slide 62: Comparison in High Risk Cases
Comparison in High Risk Cases Royal Bolton Hospital 2015 Wloch et al 25% 20% 19.2% 15.6% 15% 12.6% 11.5% 10% 5% 0% BMI > 35 Diabetes Reproductive Health Group
Slide 63: Reducing CS SSI Rate With PICO NPWT
The British Maternal & Fetal Medicine Society 17th Annual Conference Final Programme 23rd - 24th April 2015 Queen Elizabeth II Centre London, UK Reducing Postoperative Infections .- Reducing Caesarean Section (CS) Surgical Site Infection (SSI) Rate With PICO® Negative Pressure Wound Therapy (NPWT) I
Slide 64: Another Interesting Fact!
Another Interesting Fact! We noted in this audit that in half the cases, the bacteria noted in the wound were coliform and enterococci. These are due to contamination from urine and faeces. There is a great need for a stark improvement in patient education regarding hand hygiene. Reproductive Hea
Slide 65: Impact of PICO
Impact of PICO™ In our two years of experience, PICO™ negative pressure is a proven device to reduce the incidence of CS SSI. Limitation – High-risk women. (Cost) Reduction in CS SSI, readmission and return to theatre rate This automatically reduced the Demand on the health care services but mo
Slide 66: PICO contributed to fixing the problem
PICO TM contributed to fixing the problem Prevention is better than cure This ensured that any risk of infection, pre, during and post-surgery was minimised through the implementation of a multi-model approach at the level of the Trust, Healthcare Professionals and the patient Reproductive Health
Slide 67: Conclusion
Conclusion Evidence based steps for effective wound care management Staff education Consistent diagnostic criteria and wound management Patient education Provision of written information We have only started this journey and there is a long way to go. We believe that we will continue to make
Slide 68: References
References 1. http://www.hscic.gov.uk/catalogue/PUB16725. Accessed 5.11.2015. 2. https://www.nice.org.uk. Accessed 5.11.2015. 3. Wloch C, Wilson J, Lamagni T, Harrington P, Charlett A, Sheridan E. (2012) Risk factors for surgical site infection following caesarean section in England: results from a
Slide 69: Supporting healthcare professionals for over 150 years
o/. ° 7.4 smith&nephew Supporting healthcare professionals for over 150 years
Slide 70: Advanced Wound Management in the United States
Advanced Wound Management in the United States
Slide 71: U.S. Wound Management remains attractive
U.S. Wound Management remains attractive Biologics represent the overall fastest growing segment U.S. sales ($B) Sales CAGR (2014-2020) Biologics 5 Devices Wound Care Total segment: Mid Single Digit Growth $3.7 - $4.2B 4 $3.1B High Single to Low Double 3 $2.8B Digit Growth 2 Low/Mid Single Digit Gro
Slide 72: Only S&N has a portfolio that competes in all segments
Only S&N has a portfolio that competes in all segments of wound care U.S. Revenue share by category S&N Position S&N Strategy Bioactives #1 Defend and grow $0.9B (28%) Wound Care $3.2 billion #2 Expand NPWT franchise $1.3B 4%-5% CAGR (40%) Turn around performance #5 Devices to gain share $1.0B Sourc
Slide 73: Building scale in our U.S. business
Building scale in our U.S. business 500 AWM US >450 500,000 450 Sales FTE’s 400 400,000 350 300 300,000 250 200 200,000 <125 150 100,000 100 50 AWM U.S. - Revenue 0 2005 2006 2007 2008 2009 2010 2011 2012* 2013 2014 2015e Blue Sky acquisition ALLEVYN◊ VISTA, EZ Care OASIS® LIFE RENASYS◊ PICO◊ EZ and
Slide 74: 2015 U.S. commercial imperatives to generate above market growth
2015 U.S. commercial imperatives to generate above market growth Commercial Leadership Improve Execution • GAIN market share through focus Focus Investment on on growth brands Growth Brands • REDEPLOY savings for growth • CREATE opportunities in strategic Optimize Resources & channels (Long Term Car
Slide 75: U.S. Advanced Wound Care: Returning to Growth
U.S. Advanced Wound Care Returning to Growth Actions • Increase share of voice for better account coverage • New long term care sales force to support ALLEVYN™ & SANTYL™ • Improved contracting and tendering • Re-focused sales organisation and new incentive structures • Focus on cornerstone brands to
Slide 76: ALLEVYN well positioned for current market needs
ALLEVYN™ well positioned for current market needs Significant penalties for ALLEVYN demonstrated hospital acquired pressure ulcers (HAPUs) to reduce HAPUs Eskenazi Pressure Ulcer Prevention Publication 69% reduction in HAPUs $1 million annual savings with ALLEVYN* * http://www.aacn.org/wd/csi/docs/F
Slide 77: Smith & Nephew is #1 in Bioactive Segment
Smith & Nephew is #1 in Bioactive Segment S&N Bioactives sales trajectory Market Dynamics $m • 3 distinct segments: 100 – topical agents, skin substitutes and collagens 90 • Crowded and competitive market with 60+ players 80 • Topical agents remain strong with ~9% Q2 growth • Price and reimbursement
Slide 78: U.S. NPWT Strategy is aligned with global approach
U.S. NPWT Strategy is aligned with global approach Future Market Strategy Execution Selectively return RENASYS • Target acute care accounts Current Market legacy systems to U.S. • Small dedicated sales team RENASYS◊ with total account market and grow with management RENASYS TOUCH • Clinical and disc
Slide 79: Committed to delivering above market growth
Committed to delivering above market growth 1 Product portfolio that is best positioned across all segments 2 A commitment to improving commercial execution 3 Focused investments on growth brands through evidence, outcomes and medical education 4 Willingness to continue to invest in scale
Slide 80: U.S. Advanced Wound Management – one organisation to our customers
U.S. Advanced Wound Management – one organisation to our customers 81
Slide 81: Supporting healthcare professionals for over 150 years
o/. ° 7.4 smith&nephew Supporting healthcare professionals for over 150 years
Slide 82: Advanced Wound Management in Emerging Markets
Advanced Wound Management in Emerging Markets
Slide 83: Paolo Di Vincenzo
Paolo Di Vincenzo Joined Smith & Nephew in 2014 Relevant Experience •15 years Medical Device and Diagnostics experience •Europe, U.S., Asia, Middle East and Africa •Roche, Becton Dickinson, Systagenix (now Acelity) 84
Slide 84: Emerging Markets - a large region with highly diverse populations
Emerging Markets - a large region with highly diverse populations and cultures “This is where I keep all my medicine (in my bedroom). Those jars of snakes are very old!” DIABETIC FOOT PATIENT, AT HOME, CHINA 85
Slide 85: AWM is large and growing in Emerging Markets
AWM is large and growing in Emerging Markets Market Drivers • Ageing population • Innovation • Chronic illnesses • Reach • Emerging middle class • Funding • Clinical practice; Education • Regulatory environment VOLUME of wounds by geography (m) VALUE of wounds by geography ($ m) 40 1000 More than 13
Slide 86: Fast-growing with a tiered market structure
Fast-growing with a tiered market structure 2014 MARKET STRUCTURE: PREMIUM AND MID TIER Advance Wound Management market size $1.9B - CAGR +10% AWD Other EM AWC $ 1,100m China AWD Other EM Mid-tier segment AWC $ 800m China Premium segment S&N growing faster than market in both premium and mid-tier se
Slide 87: Premium - improving clinical and economic outcomes
Premium - improving clinical and economic outcomes World Class Portfolio Key Priority Indications World Class Enablers ALLEVYN LIFE™ Diabetic Foot Ulcers Pressure Ulcers Training Medical Education VERSAJET™ Burns Trauma Evidence Market Access OPSITE™ Post-Op Visible ACTICOAT™ Incisions Support Progr
Slide 88: Mid-Tier - increasing access and adoption
Mid-Tier - increasing access and adoption Expanding product portfolio What we want to improve Ensuring adequate capabilities and ELECT™ IV leveraging a lean model ELECT™ FOAM ORGANISATION ELECTOFIX™ Mid-Tier PORTFOLIO CHANNEL Providing products that Ensuring reach through are fit for purpose to low-
Slide 89: Smith & Nephew is well positioned to win
Smith & Nephew is well positioned to win 1 4 CLINICAL PRACTICE REACH Training and education Sales and Marketing Clinical and best practice guidelines Distribution Network 2 5 REGULATORY AND COMPLIANCE INNOVATION Responding to evolving local requirement Exudate Management Infection Management Strong
Slide 90: Our Vision in Practice
Our Vision in Practice “Appropriate and effective dressings are key in managing these cases and this is where it is important to work with a skilled team. When Smith & Nephew provided us with these specialized dressings in the past they worked excellently” - Dr Emmanuel Kabuzi, the consulting specia
Slide 91: Spotlight on China
Se [ao | ure | Infusion Room ——— Wi) 15 /$REB/ EIN BN Burns Clinic / Bandage Change / Ge BL/ PAARL oloay/Neuros rps | A i " I 2 £.. -_— 3 #04 Ft / HMA LS Spotlight on China
Slide 92: China market structure
China market structure Types of wounds S&N presence Key Treatment site Types of products today competitors Chronic wounds Advanced wound Multinationals Class 3 hospitals Surgical wounds management products ~40% ~ 1,100* Post-op wounds coverage General wounds Patient flow Surgical wounds Mid-Tier pro
Slide 93: How Smith & Nephew addresses market challenges
How Smith & Nephew addresses market challenges China Specific Challenges around What we do to address it Market Access Registration Depth and strength of dossier submissions Hospital listing Protocols & guidelines Access Product development, M&A, and licensing Key Strategic Levers Education and trai
Slide 94: Strengthened position over the past 3 years
Strengthened position over the past 3 years Strong focus and momentum Growing presence in key Establishing strong footprint in Recognized for innovation and strategic segments key hospitals and geographies expertise How we are winning in AWC (dressings) How we are winning in AWD (devices) • Establis
Slide 95: Summary - well positioned in attractive market with significant growth opportunity
Summary - well positioned in attractive market with significant growth opportunity Attractive Market Well Positioned Growth Opportunity Large and growing Strong brand equity Expand footprint Significant unmet need Customer reach Optimize portfolio Under penetrated Focus on innovation 96
Slide 96: Trademark notice
97 ™Trademark of Smith & Nephew. OASIS is a registered trademark of Cook Biotech, Inc