Smiths Group Plc · LSE:SMIN
Smiths — Shareholder Meeting (November 2021)
25 slides from Smiths's shareholder meeting presentation, Nov 17, 2021
Slide 1: Pioneers of Progress: Annual General Meeting 17 November 2021
www.smiths.com www.smiths.com PIONEERS OF PROGRESS IMPROVING OUR WORLD THROUGH SMARTER ENGINEERING SMITHS GROUP PLC Annual General Meeting 17 NOVEMBER 2021
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 SMITHS GROUP PLC | AGM 2021 | 3
Slide 4: Pam Cheng and Tanya Fratto
Pam Cheng and Tanya Fratto SMITHS GROUP PLC | AGM 2021 | 4
Slide 5: Chairman's address
Chairman’s address CHAIRMAN SIR GEORGE BUCKLEY SMITHS GROUP PLC | AGM 2021 | 5
Slide 6: Chief Executive's review
Chief Executive’s review CHIEF EXECUTIVE PAUL KEEL SMITHS GROUP PLC | AGM 2021 | 6
Slide 7: Agenda
Agenda Early observations Recap of FY21 results Our focus moving forward SMITHS GROUP PLC | AGM 2021 | 7
Slide 8: 170 years of pioneering across technologies, markets and geographies
170 years of pioneering across technologies, markets and geographies 1851 1900 1950 2000 2021 Samuel Smith founds First medical ultrasound Catheter for first First hold baggage Revolutionary our company test-tube baby CT scanner dry gas seal Energy Threat Detection Instrumentation Life Sciences for
Slide 9: Our Purpose: Pioneers of Progress
Our Purpose PIONEERS OF PROGRESS Improving our world through smarter engineering SMITHS GROUP PLC | AGM 2021 | 9
Slide 10: Our fundamental strengths
Our fundamental strengths £ $ World-Class Leading Positions in Global Robust Financial Engineering Critical Markets Capabilities Framework Pioneers across Valued partners The depth and reach Resilient, repeatable multiple geographies supplying mission- to think globally while revenues with low and i
Slide 11: Our global service network allows us to deliver real-time, mission-critical support
Our global service network allows us to deliver real-time, mission-critical support in demanding operating environments Smiths Global Capabilities John Crane and 200 service locations, 1,350 service personnel Smiths Detection ▪ 300+ service locations Global Service Network 100 service locations, 800
Slide 12: The Smiths Financial Framework
The Smiths Financial Framework Sources of Cash Uses of Cash Revenue Accelerating Organic Growth Free Operating Profit Leverage Cash Complementary M&A Flow1 Operating Cash Conversion Returns to Shareholders 1: Headline operating cash-flow less taxation, interest, pension, non-headline operating cash
Slide 13: Our Priorities
Our Priorities Growing Executing Inspiring and Faster Better Empowering our People SMITHS GROUP PLC | AGM 2021 | 13
Slide 14: Fiscal 2021 Results
Fiscal 2021 Results Reported Underlying FY20211 FY20201 change change3 STRENGTHENING TOPLINE Smiths - Continuing Operations2 Revenue £2,406m £2,548m (6)% (2)% STRONG PROFIT CONVERSION Operating profit £372m £327m +14% +7% Operating profit margin 15.5% 12.8% +270bps +140bps Total Group EXCELLENT CASH
Slide 15: The benefits of selling Smiths Medical are numerous
The benefits of selling Smiths Medical are numerous Status of Smiths Medical Sale Smiths Financial Performance1, FY17 – FY21 Industrial Technology Core vs. Smiths Medical 108% +400 bps ▪ Sale to ICU Medical announced 8 September Smiths Industrial Technology Divisions 104% Smiths Medical ▪ Enterprise
Slide 16: Smiths Value Engine
Smiths Value Engine OUR PURPOSE OUR STRENGTHS OUR PRIORITIES World-Class Growth Engineering Leading Positions in Critical Markets Execution PIONEERS OF Global PROGRESS Capabilities Improving our world through smarter £ Robust Financial People $ engineering Framework SMITHS GROUP PLC | AGM 2021 | 16
Slide 17: We're accelerating growth with four actionable levers
We’re accelerating growth with four actionable levers Disciplined M&A Building out priority adjacencies New product development and commercialisation Strong execution to maximise market recovery opportunity SMITHS GROUP PLC | AGM 2021 | 17
Slide 18: Relaunching our Smiths Excellence System underpins our focus on execution
Relaunching our Smiths Excellence System underpins our focus on execution Laying the groundwork SES 2.0 (FY22 and beyond) (FY18-FY21) Advancing from learning to doing OBJECTIVES PLAN - Lay the foundation for continuous improvement - Set delivery targets tied directly to external - Establish common l
Slide 19: Inspiring and Empowering our People
Inspiring and Empowering our People Inclusive, Transparent, Talented, and Engaged Diversity & Inclusion: - 29% of leadership roles held by women; diverse slates required for all leadership roles - 25% of non-executive Directors ethnically diverse, 50% women - Active employee resource groups Culture
Slide 20: Our ESG progress, commitments, and targets
Our ESG progress, commitments, and targets Environmental progress since 2007 Recent progress & on-going commitments Greenhouse Gas Emissions – 1. Sustainability committee established at Board level Reduced by 60% 2. Compensation now linked to ESG metrics Renewable Electricity – Increased to 58% 3. P
Slide 21: Smiths Value Engine
Smiths Value Engine OUR PURPOSE OUR STRENGTHS OUR PRIORITIES World-Class Growth Engineering Leading Positions in Critical Markets Execution PIONEERS OF Global PROGRESS Capabilities Improving our world through smarter £ Robust Financial People $ engineering Framework SMITHS GROUP PLC | AGM 2021 | 21
Slide 22: Wrap-Up
Wrap-Up ▪ Our Purpose is clear. We are Pioneers of Progress, improving our would through smarter engineering. ▪ Smiths is an intrinsically strong company with the potential for significant near and longer-term value creation. ▪ The key to unlocking this value is moving with greater pace and urgency,
Slide 23: Questions & Answers
QUESTIONS & ANSWERS SMITHS GROUP PLC | AGM 2021 | 23
Slide 24: Poll vote resolutions
Poll vote resolutions 1. Receipt of Annual Report FY2021 12. Re-election of Mark Seligman as a director 2. Approval of Directors’ Remuneration Policy 13. Re-election of John Shipsey as a director 3. Approval of Directors’ Remuneration Report 14. Re-election of Noel Tata as a director 4. Declaration
Slide 25: Proxy votes cast
Proxy votes cast 329 million proxy votes cast 83% of the issued share capital Continued strong support - full results will be available on the website SMITHS GROUP PLC | AGM 2021 | 25