Smith & Nephew plc · LSE:SN.
Smith & Nephew — JP Morgan Healthcare Conference 2014
14 slides from Smith & Nephew's conference presentation, Jan 14, 2014
Slide 1: JP Morgan Healthcare Conference
JP Morgan Healthcare Conference 14 January 2014
Slide 2: Forward looking statements
Forward looking statements This document contains certain 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"
Slide 3: Our business
Our business ALLEVYN◊ VERILAST◊ VISIONAIRE◊ RENASYS◊ GO Wound Dressings 30-year wear claim Patient Matched Instrumentation Negative Pressure Wound Therapy Advanced Wound Management ANTHOLOGY◊ Primary Hip System Knee Implants $4.1bn DYONICS◊ PLATINUM Shaver Blades Other revenues (2012) Arthroscopic H
Slide 4: Strategic Priorities
Strategic Priorities • Winning in Established Markets • Accelerating development in Emerging Markets • Innovating for value • Simplifying and improving our operating model • Supplement organic growth through acquisitions 4
Slide 5: Winning in Established Markets
Winning in Established Markets 2012 S&N revenues • 2012 highlights (geographic split) – ASD restructuring – AWM realignment – Bioventus Established Markets (88%) • 2013 developments EM/IM (12%) – Trauma and Extremities investment – continued NPWT expansion – integration of Healthpoint on track 5
Slide 6: Accelerating development in Emerging Markets
Accelerating development in Emerging Markets 2012 S&N revenue growth (contribution) • 2012 highlights – China successful model Establis EM/IM – significant structural and talent hed Markets (41%) investment (59%) • 2013 developments Revenue Development – organic investment (e.g. Mexico) – acquisitio
Slide 7: Closer to the customer; developing critical mass
Closer to the customer; developing critical mass BRIC China India Brazil Russia ‘Next level’ Turkey Mexico Saudi Arabia South Africa 7
Slide 8: Product strategy and development
Product strategy and development Market S&N Strategy Execution Upper “Lead” the Premium • Registering more existing tier segments products Mid • Acquisitions Tier “Champion”: address and Mid-tier • New product development create Mid-tier • Launching AWM range Lower Tier Lower tier “Opportunistic” 8
Slide 9: Innovating for value
Innovating for value • 2012 highlights – 32 new AWM products – ASD launch new platforms HEALICOIL◊ PK VLP◊ FOOT Percutaneous Suture Anchor Calcaneus Plating System R&D % • 2013 developments – increased R&D investment – ASD: JOURNEY◊ II, Foot & Ankle set, HEALICOIL◊ anchors – AWM: continues launch mo
Slide 10: Simplifying and improving our operating model
Simplifying and improving our operating model 2012 2013 Programme initiated Q4 2011 Manufacturing asset review 2014 Expect total programme annual underway benefits of $150m AWM manufacturing footprint complete Incurred costs of $127m to Ortho and Endo businesses Sept 2013 ($112m cash and combined $1
Slide 11: Supplement organic growth through acquisition
Supplement organic growth through acquisition Scale Acquisitions Large bolt-ons Supplementing organic growth strategies Complementary technology 11
Slide 12: Capital allocation framework
Capital allocation framework Reinvest for Progressive Acquisitions Return organic dividend in line with excess to growth policy strategy shareholders 1 2 3 4 Maintain strong balance sheet to ensure solid investment grade credit metrics 12
Slide 13: Summary – making choices for the long term
Summary – making choices for the long term • Strategic priorities progress – revenue and trading profit in-line with expectations – efficiency benefits evident – strong operational and financial platform – acquisitions • Towards stronger portfolio, flexibility and predictability – invested in attrac
Slide 14: We are smith&nephew
+“ We are smith&nephew
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