Smiths Group PLC · LSE:SMIN
Smiths — Investor Presentation (March 2004)
23 slides from Smiths's investor presentation, Mar 25, 2004
Slide 1: Meeting with Canadian investors
Smiths Group Meeting with Canadian investors Organised by CIBC World Markets Alan Alan Thomson Thomson -- Financial Financial Director, Director, Smiths Smiths Group Group plc plc Russell Russell Plumley Plumley -- Director, Director, Investor Investor Relations, Relations, Smiths Smiths Group Group
Slide 2: Key Messages from Interim Results, March 04
Smiths Smiths Group Group Key Messages from Interim Results, March 04 II Aerospace, Medical, Specialty Engineering all performing strongly II Underlying growth impacted by contract timing in Detection II Consistently good cash generation II Continued organic investment in the core businesses II Full
Slide 3: Operating performance in H1/04 met expectations
Operating Operating performance performance in in H1/04 H1/04 met met expectations expectations Continuing Continuing activities, activities, before before goodwill goodwill amortisation amortisation and and exceptional exceptional charges charges £m H1/2004 H1/2004 H1/2003 H1/2003 (restated) (resta
Slide 4: Aerospace, Medical and Specialty Engineering all performing strongly at present
Aerospace, Aerospace, Medical Medical and and Specialty Specialty Engineering Engineering all all performing performing strongly strongly at at present present Interim Interim Results, Results, March March 04 04 at at constant constant £m op. op. profit profit increase increase currency currency Aer
Slide 5: Detection impacted the underlying growth of Smiths in H1/04
Detection Detection impacted impacted the the underlying underlying growth growth of of Smiths Smiths in in H1/04 H1/04 9 Current outlook is for a rapid recovery H1/03 H2/03 H1/04 H2/04 Sales Sales £121m £121m Sales Sales £152m £152m Sales Sales £143m £143m Sales Sales increase increase Profits Prof
Slide 6: Delivering improved operational performance: cost management
Delivering Delivering improved improved operational operational performance performance 1 Cost management A global approach to manufacturing I Moving production to lower-cost locations I Setting up alongside key customers in developing markets Mexico I Medical I John Crane China I Aerospace I John C
Slide 7: Delivering improved operational performance: investment in new product development
Delivering Delivering improved improved operational operational performance performance 2 Investment in new product development II Company Company funded funded R&D R&D will will increase increase by by 10% 10% this this year year II Now Now running running at at 5% 5% of of sales sales II Additiona
Slide 8: Focusing on activities with strong growth potential
Focusing Focusing on on activities activities with with strong strong growth growth potential potential approx. approx. sales sales approx approx contrib. contrib. Aerospace Aerospace to to 2003 2003 profit profit Systems Systems and and equipment equipment for for military military and and commerci
Slide 9: Smiths Aerospace
Smiths Smiths Aerospace Aerospace II Commitment Commitment to to technology technology II First First tier, tier, systems systems integrator integrator Defence Defence Aftermarket Aftermarket II Avionics, Avionics, actuation, actuation, engine engine components components II 22 year year programme p
Slide 10: Smiths Aerospace: Commercial flat, defence up
Smiths Smiths Aerospace: Aerospace: Commercial Commercial flat, flat, defence defence up up Commercial Commercial Production Production of of aircraft aircraft (100+seats) (100+seats) Commercial Commercial 1000 1000 II Low Low aircraft aircraft production production will will persist persist through
Slide 11: Winning business on the Boeing 7E7
Winning Winning business business on on the the Boeing Boeing 7E7 7E7 (announced (announced February February 2004) 2004) II Smiths Smiths wins wins Common Common Core Core System System (CCS) (CCS) for for Boeing Boeing 7E7 7E7 II Re-affirms Re-affirms Tier Tier 1 1 systems systems integrator integ
Slide 12: Acquisition of DGT
Acquisition Acquisition of of DGT DGT (announced (announced March March 2004) 2004) II Complements Complements existing existing Engine Engine Components Components activity activity II Good Good customer customer and and product product synergies synergies II Industry Industry leader leader in in c
Slide 13: Smiths Detection
Smiths Smiths Detection Detection II Market Market leader leader in in Detection: Detection: chemicals, chemicals, nuclear, nuclear, biological, biological, security security threats, threats, contraband contraband II Technology Technology leader: leader: only only supplier supplier withwith Trace T
Slide 14: Smiths Detection: Wide range of capabilities and applications
Smiths Smiths Detection: Detection: Wide Wide range range of of capabilities capabilities and and applications applications Airports Airports US US airports airports II People People II Hand Hand luggage luggage II Checked Checked baggage baggage II Global Global customer customer base base II Less
Slide 15: Detection - a strong presence globally
Detection Detection -- aa strong strong presence presence globally globally H2/04 H2/04 sales sales will will include: include: mobile mobile x-ray x-ray for for Customs, Customs, anthrax anthrax detection detection for for USA USA USPS, USPS, trace trace detection detection for for TSA, TSA, ACADA
Slide 16: Cyrano Sciences - Adding technology to the Detection division
Cyrano Cyrano Sciences Sciences -- Adding Adding technology technology to to the the Detection Detection division division (announced (announced March March 2004) 2004) II Early Early stage stage technology technology company company II Chemical/biological Chemical/biological threat threat identific
Slide 17: Smiths Medical
Smiths Smiths Medical Medical II Strong Strong market market niches niches in in two two key key sectors sectors RoW RoW US US II High High margins margins II Innovative Innovative technologies: technologies: driven driven by by dynamic dynamic US US market market (over (over 50% 50% of of sales) sa
Slide 18: Smiths Medical: Two areas of product focus
Smiths Smiths Medical: Medical: Two Two areas areas of of product product focus focus Anaesthesia Anaesthesia & & Safety Safety Devices Devices Medication II Single Single use use devices devices for for critical critical care care Delivery & Patient II Mainly Mainly used used in in hospital, hospit
Slide 19: Significant opportunity in Medical: Insulin delivery pumps
Significant Significant opportunity opportunity in in Medical: Medical: Insulin Insulin delivery delivery pumps. pumps. Cozmo Cozmo sales sales growing growing strongly strongly II More More than than 7,000 7,000 sold sold since since launch launch in in December December ’02. ’02. II Salesforce Sal
Slide 20: Smiths: Specialty Engineering
Smiths: Smiths: Specialty Specialty Engineering Engineering II High High margin margin engineering engineering businesses businesses John John Crane Crane Ducting Ducting II All All generating generating strong strong cash-flow cash-flow II Markets Markets include: include: capital capital goods, go
Slide 21: Specialty Engineering: Business units are performing well
Specialty Specialty Engineering Engineering Business Business units units are are performing performing well well John John Crane Crane II Strengthening Strengthening its its market market presence presence in in Russia, Russia, China China and and South South America America II Oil Oil & & gas gas
Slide 22: Smiths Group: Fundamental Strengths
Smiths Smiths Group: Group: Fundamental Fundamental Strengths Strengths 9 Focusing on areas with best growth potential Strong market position in key 9 engineering sectors 9 Commitment to technology leadership 9 Continuous drive to reduce the cost base Operating profit into operating cash: 9 more tha
Slide 23: www.smiths-group.com/ir
www.smiths-group.com/ir www.smiths-group.com/ir Register Register here here to to receive receive regular regular information information ½