Smith & Nephew plc · LSE:SN.

Smith & Nephew — Investor Presentation (2002)

15 slides from Smith & Nephew's investor presentation, 2002

1. Slide 1: Ron Sparks, President – Smith & Nephew Endoscopy

   Ron Sparks, President – Smith & Nephew Endoscopy 1

2. Slide 2: 2002 Review

   2002 Review | Underlying sales growth 10% (ORATEC adds +9%) | Successful product and technology integration of ORATEC | Favorable clinical outcome study for The IDET Procedure | Successful launch of the Smith & Nephew Digital O.R. | Installations among leading medical facilities worldwide | Global

3. Slide 3: Focus 2003

   Focus 2003 | Strengthen position in Arthroscopy market | Accelerating TriVex™ penetration | Minimally invasive spine adoption | Digital O.R. installations 3

4. Slide 4: Strengthen Position in Arthroscopy: FastFix AB

   Strengthen Position in Arthroscopy FastFix™ AB Meniscal Knee Repair System | First meniscal repair technique to combine the ease- of-use of meniscal repair implants with bioabsorbable anchor | Near 40% meniscal repair market share in 2002 for traditional FastFix™ Meniscal Repair System | Collective

5. Slide 5: Strengthen Position in Arthroscopy: TwinFix

   Strengthen Position in Arthroscopy TwinFixTM for Shoulder Repair | TwinFixTM AB 5.0 | Bioabsorbables have become the preferred choice of physicians | Q3 2002 launch | TwinFixTM Suture Anchors with Needles | Used in open, mini-open and arthroscopic procedures | Q4 2002 launch | Globally -- over 500,0

6. Slide 6: Strengthen Position in Arthroscopy: Suretac III, Quick T

   Strengthen Position in Arthroscopy Suretac III System | Updated design for expanded surgical indications in the shoulder | Fully disposable, rapid delivery system | Q1 2003 launch Quick T™ Fixation Device | Quick T provides world’s first knotless anchoring for the shoulder | “T” provides greater tis

7. Slide 7: Strengthen Position in Arthroscopy: ElectroBlade Resector

   Strengthen Position in Arthroscopy Dyonics® ElectroBlade TM Resector | Creates new market - $50 million by 2005 | Combines bipolar RF with traditional blade technology to provide simultaneous mechanical resection with coagulation | Improved Visualization | Resects smooth tissue | Direct connect to s

8. Slide 8: Strengthen position in Arthroscopy: Saphyre Probes

   Strengthen position in Arthroscopy Saphyre™ Bipolar Ablation Probes | Used with the Vulcan System, the only RF generator to support bipolar, monopolar and temperature-controlled RF | Coolback™ shaft reduces risk of secondary tissue damage | Bipolar accounts for $95 million of $120 million RF market

9. Slide 9: Accelerating TriVex penetration

   Accelerating TriVex penetration TriVex™ System for Varicose Vein Resection | World’s first minimally invasive treatment for varicose vein removal | Over 1100 surgeons trained worldwide | 4.5 and 5.5 Resectors | Reached 30,000 procedure milestone | U.S. 2002 -- national, regional and local media cove

10. Slide 10: Minimally Invasive Spine Adoption: IDET

    Minimally Invasive Spine Adoption IDET | Primary age range = 18 - 55 | Over 1.5 million with IDET-indicated disc pathology -- isolated chronic lower back pain associated with contained herniated discs | 16.5-minute heating protocol broadly directed at annular fissures - heating element on SpineCath,

11. Slide 11: Minimally Invasive Spine: Decompression Catheter

    Minimally Invasive Spine Decompression Catheter | Primary age range = 18 - 55 | Nearly 250,000 with Decompression- indicated disc pathology - bulging (herniated) disc causing sciatica pain | 12-minute heating protocol focused at site of herniation - heating element of Decompression Catheter, 1.5cm |

12. Slide 12: Digital OR

    Digital OR | An integrated and fully functional operating room suite that will enable hospitals and surgical centers to maximize performance through innovative medical technologies | SN products and alliances to support: – Centralized and voice control – Information and Image Management Solutions –

13. Slide 13: Building and Sustaining Surgeon Relationships

    Building and Sustaining Surgeon Relationships | World-class salesforce | Surgeon Education | Education Materials | Global Fellows | OnSite/BioSkills Lab | InVentures | Surgical Skills Network | Partnerships with Professional Societies | Surgeon Advisory Boards | Digital O.R. 13

14. Slide 14: Keys to Success

    Keys to Success  Improving Endoscopy market position  Sustain strong repair growth  Grow spine business  Expand Digital O.R. base  New product execution  Continued investment in new techniques  Growth in contribution of new products to total revenue  Minimize time-to-peak sales  Double-digi

15. Slide 15: Smith & Nephew

    Smithse-Nephew

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