Smith & Nephew Plc · LSE:SN.
Smith & Nephew — Exane BNP Paribas Conference 2010
17 slides from Smith & Nephew's conference presentation, May 10, 2010
Slide 1: Exane BNP Paribas Conference
Exane BNP Paribas Conference 10 May 2010
Slide 2: Forward looking statements
Forward looking statements This presentation contains certain "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. In particular, statements regarding expected revenue growth and trading margins discussed under "Outlook" are forward-looking stat
Slide 3: Adrian Hennah, Chief Financial Officer
Adrian Hennah Chief Financial Officer
Slide 4: Overview of Smith & Nephew
Overview of Smith & Nephew 2009 Advanced Wound Sales $3,772m Management Trading profit $857m Advanced treatments Margin 22.7% for hard to heal wounds Sales $846m 22% 57% Orthopaedics Endoscopy - Reconstruction ($1,487m) Products for minimally 21% Hip, knee & shoulder products invasive surgery - Trau
Slide 5: Our position – leading share and a diversified business
Our position – leading share and a diversified business #1 #2 #3 #4 #5 Sales by geography Orthopaedics Rest of the world Recon Zimmer DePuy Stryker S&N Biomet USA Trauma Synthes Stryker S&N DePuy Zimmer 21% Clinical 44% Genzyme S&N Sanofi Therapies Endoscopy 27% Sports S&N Arthrex Mitek Stryker Arth
Slide 6: What drives underlying market growth?
What drives underlying market growth? Orthopaedics Endoscopy AWM Demographics Prevalence - Osteoarthritis - Obesity - Diabetes “By 2050, the number of Lifestyle people over the age of 65 - Activity levels around the world will have - Quality of life tripled to nearly 1.
Slide 7: Our strategic pillars for success
Our strategic pillars for success Ortho Endo AWM Biologics Customer Led Focus on our customers, anticipate and innovate to deliver on their needs, outperform our markets Streamline processes, implement practices to Efficient improve operating margins and free up resources to invest in the business D
Slide 8: Customer-led - some examples for 2010
Customer-led - some examples for 2010 • Medical education – Beijing, Chengdu (Ortho) Customer-led – York (Ortho/Endo) – Memphis (Ortho) – Lucerne (Ortho) – NPWT global consensus in Hamburg – Endo Fellowship program • Innovation Efficient – AAOS: multiple new products – Market needs - VISIONAIRE™ – T
Slide 9: Efficient - some examples for 2010
Efficient - some examples for 2010 • Operational – Factories coming on line Customer-led • Suzhou additional lines • Beijing – Complete first phase of LEAN – Global procurement expanding Efficient • Process and systems – Rationalising global platforms – Operating models • Margin Investing for – Embe
Slide 10: Investing for growth - some examples for 2010
Investing for growth - some examples for 2010 • Development of additional medical education facilities Customer-led • Fast track new product development • Emerging markets investment • Sales management university • Adjacencies and bolt-on acquisitions Efficient Investing for growth 10
Slide 11: Q1 2010 financial highlights
Q1 2010 financial highlights 9 Revenue Growth % 8 7 • Revenues $995m 6 5 – 9% growth for the quarter 4 • Trading profit $250m 3 2 – Trading margin 25.1% for the 1 0 quarter Q1 08 Q1 09 Q1 10 – up 390 basis points including 30 BlueSky agreement contribution of Trading Margin % 25 220 basis points 20
Slide 12: Orthopaedics – Q1 2010
Orthopaedics – Q1 2010 Q1 achievements • LEGION™ and GENESIS™ drive knees • 2000+ VISIONAIRE™ procedures in Q1 Revenues $566m up 6% • R3™ Acetabular Cup and ANTHOLOGY ™ stem driving Reconstruction growth in hips • Hips +6% globally, US 8% • TRIGEN™ SURESHOT™ demand strong and growing post AAOS • Kne
Slide 13: Endoscopy – Q1 2010
Endoscopy – Q1 2010 Q1 achievements • Fast track new product development program • Major product launches at Revenues $216m, growth of 15% AAOS – TWIN FIX™ Ultra PK Suture • ROW grows over 20% Anchor, BIORAPTOR™ Sports medicine up 17% driven by hips, knees and shoulder Knotless Suture Anchor • FASTF
Slide 14: Advanced Wound Management – Q1 2010
Advanced Wound Management – Q1 2010 Q1 achievements • US distributor changes initiated • BlueSky purchase agreement closed out • Nucryst integration completed Revenues of $213m and global growth of 11% • ACTICOAT™ production transfer to Hull, UK announced US revenues grow 10%, Europe 12%, ROW 9% • C
Slide 15: 2010 outlook
2010 outlook • Revenue growth: – No change for Group as a whole – Recon: return to market growth during 2010 – Trauma: return to market growth over time – Endo: ahead of market in arthroscopy – Wound: ahead of market • Margin: material improvement over 2009 level 15
Slide 16: Summary
Summary We want to be the company that: • Anticipates and proactively addresses customer needs • Develops world class products • Creates value for our customers and ourselves • Works across boundaries to exceed customer expectations • Is flexible and highly efficient • Is a great place to work and d
Slide 17: We are smith&nephew
>\We are smith&nephew