Smiths Group Plc · LSE:SMIN
Smiths — Shareholder Meeting (November 2022)
23 slides from Smiths's shareholder meeting presentation, Nov 16, 2022
Slide 1: Pioneers of Progress – Annual General Meeting
PIONEERS OF PROGRESS Smiths Group plc Annual General Meeting IMPROVING OUR WORLD 16 November 2022 THROUGH SMARTER ENGINEERING
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that are forward-looking statements. They appear in a number of places throughout this presentation and include statements regarding the intentions, beliefs and/or current expectations of Smiths Group plc (the “Company”) and its subsidiaries (
Slide 3: Chairman's address
Chairman’s address Chairman Sir George Buckley
Slide 4: CEO update
CEO update Chief Executive Officer Paul Keel
Slide 5: Agenda
Agenda Our strategy Our progress Our potential | 5 |
Slide 6: Our goal: Creating value for all stakeholders
Our goal Creating value for all stakeholders CUSTOMERS COLLEAGUES COMMUNITIES SHAREHOLDERS Solutions that help customers Empower and inspire our Improving our world Performance matching our achieve their goals People - Advancing our strong potential - Technology differentiation - Great people work f
Slide 7: Our strategy - the Smiths Value Engine
Our strategy - the Smiths Value Engine OUR PURPOSE OUR STRENGTHS OUR PRIORITIES World-Class Engineering Growth Leading Positions in Critical Markets PIONEERS OF Execution Global PROGRESS Capabilities Improving our world through smarter Robust Financial People engineering Framework | 7 |
Slide 8: Agenda
Agenda Our strategy Our progress Our potential | 8 |
Slide 9: Progress since our 2021 Annual General Meeting
Progress since our 2021 Annual General Meeting GROWTH EXECUTION PEOPLE Q123 trading update 13.2% organic growth Strong H222 results 4.1% organic growth 2021 Annual Medical sale SES 2.0 6 Master Black Belts and General completed early launch 24 Black Belts appointed to Meeting accelerate SES 2022 Ann
Slide 10: Clear progress towards medium-term financial targets
Clear progress towards medium-term financial targets 100%+ +M&A 18-20% 15-17% +M&A 7- 10% 4–6% ORGANIC REVENUE GROWTH1 EPS GROWTH ROCE2 OPERATING PROFIT MARGIN OPERATING CASH CONVERSION2 FY2020 (1.0)% (27.4)% 12.8% 12.8% 112% FY2021 (2.2)% +19.3% 13.9% 15.5% 129% FY2022 +3.8% +17.8% 14.2% 16.3% 80%
Slide 11: Q1'23 – a strong start to the year
Q1’23 – a strong start to the year Q1 Trading Organic revenue growth (%) 6 consecutive quarters of growth • Q1’23: +13.2% organic revenue growth, our sixth consecutive quarter of growth 13.2% • John Crane posted steady growth and demand remains strong • Smiths Detection benefitted from a strong Q1 o
Slide 12: Agenda
Agenda Our strategy Our progress Our potential | 12 |
Slide 13: Our fundamental strengths underpin achievement of our potential
Our fundamental strengths underpin achievement of our potential OUR STRENGTHS • 171-year track record of innovating across multiple markets World-Class • R&D investment consistently above competition; strongest NPD pipeline in years Engineering • Unmatched global service network of 2000+ specialists
Slide 14: Smiths Excellence System and other initiatives support operational excellence
Smiths Excellence System and other initiatives support operational excellence Smiths Excellence System Additional initiatives • SES is central to how we solve problems and deliver results • Expanding presence in priority markets; continue to manage price and supply chain • Full-time team including 6
Slide 15: Our ESG Framework: from purpose to action
Our ESG Framework: from purpose to action FLEX-TEK Sustainability at Smiths Improving our world through smarter engineering | 15 |
Slide 16: Powerful megatrends propel long-term growth
Powerful megatrends propel long-term growth, which Smiths is uniquely positioned to access Energy Transition Insatiable Demand for Data • Fundamentally an • Global data consumption engineering opportunity doubling every 4 years3 • Particular opportunity for • Transmission data rates John Crane and F
Slide 17: Inspiring, empowering and investing in our people
Inspiring, empowering and investing in our people Priorities Progress Recordable incident rate has averaged 0.4 across the last 5 years, Safety and wellbeing always top quartile for manufacturing companies at the forefront Incident rate at Royal Metal improved 48% since acquisition Refreshed l
Slide 18: FY2023 guidance
FY2023 guidance FY2023 summary • Strong demand in most end markets, with order growth above accelerating sales levels Expect to deliver • Our high-value business model enabling 4.0-4.5% organic price capture in excess of input cost inflation revenue growth with • Smiths Detection back in growth mode
Slide 19: Closing Thoughts
Closing Thoughts Our value creation thesis is unchanged: – Smiths is an intrinsically strong company capable of more – Higher performance creates greater value for all stakeholders – There is clear evidence of progress already, with further potential to come Our momentum and execution will drive fur
Slide 20: Questions & Answers
j » — Questions & Answers smiths
Slide 21: Poll vote resolutions
Poll vote resolutions 1. Receipt of Annual Report FY2022 12. Re-election of Mark Seligman as a director 2. Approval of Directors’ Remuneration Report 13. Re-election of Noel Tata as a director 3. Declaration of a final dividend 14. Re-appointment of KPMG LLP as auditors 4. Election of Richard Howes
Slide 22: Proxy votes cast
Proxy votes cast • 294,080,202 million proxy votes cast • 82.92% of the issued share capital • Continued strong support - full results will be available on the website
Slide 23: Thank you for attending Smiths 108th Annual General Meeting
PIONEERS OF PROGRESS Thank you for attending Smiths 108th Annual General Meeting IMPROVING OUR 16 November 2022 WORLD THROUGH SMARTER ENGINEERING