Smiths Group PLC · LSE:SMIN
Smiths — Shareholder Meeting (November 2009)
12 slides from Smiths's shareholder meeting presentation, Nov 17, 2009
Slide 1: Smiths Group Annual General Meeting 17 November 2009
Smiths Group Annual General Meeting 17 November 2009 Smiths Group plc AGM 2009 | 1
Slide 2: Forward-looking statements
This presentation contains certain forward-looking statements with respect to the operations, performance and financial condition of the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from tho
Slide 3: Introduction - Philip Bowman, Chief Executive
Introduction Philip Bowman, Chief Executive Smiths Group plc AGM 2009 | 3
Slide 4: Financial highlights
Financial highlights Reported results: • Sales increased by 15% • Headline operating profit up 10% - currency and recent acquisitions Excluding acquisitions and at constant currency: • Sales declined 7% and headline operating profit fell 13% • Challenging economic environment Significant improvement
Slide 5: Detection: Variable order flow has affected sales and margins
Smiths Detection: Variable order flow has affected sales and margins • Reported sales down 2%; underlying sales down 17% • Weak orders for ports and borders • Exceptional military growth • Transportation sales flat • Better start to the new fiscal year Smiths Group plc AGM 2009 | 5
Slide 6: John Crane: Improving margins while OEM orders have slowed
John Crane: Improving margins while OEM orders have slowed • Reported sales up 26%; underlying sales down 1% • Second half slowdown in original equipment sales • Orion bearings acquisition expanded addressable market • Restructuring programme is on track • Scope to expand margins in challenging envi
Slide 7: Medical: Delivering operational improvements and better sales momentum
Smiths Medical: Delivering operational improvements and better sales momentum • Reported sales up 19%; underlying sales down 2% • Pressure on capital budgets constrained hardware sales • Single-use devices (80% of sales) have performed better • Operational improvement – reduced back orders • Increas
Slide 8: Interconnect: Good growth from military; wireless slower
Smiths Interconnect: Good growth from military; wireless slower • Reported sales up 22%; underlying sales down 5% • Slower sales in wireless and connectors • Military grew well with new contract wins • Restructuring is starting to deliver benefits • Expanding footprint in Asia with acquisition of Do
Slide 9: Flex-Tek: Facing challenging markets; growth in aerospace
Flex-Tek: Facing challenging markets; growth in aerospace • Reported sales up 8%; underlying sales down 15% • Pressure in US housing and household appliances • Cost cutting helped sustain profit margins • Aerospace sales performed better • A lean business strongly leveraged to a recovery Smiths Grou
Slide 10: Group: A business in transformation
Smiths Group: A business in transformation 2005 2009 Sales £3.0bn £2.7bn Operating margins 14% 16% Cash conversion 62% 104% Return on shareholders’ funds 11.2% 16.5% Smiths Group plc AGM 2009 | 10
Slide 11: Group: Opportunities to create value
Smiths Group: Opportunities to create value Delivering operational efficiencies Cash generation Investing in future growth Smiths Group plc AGM 2009 | 11
Slide 12: Smiths Group Annual General Meeting 17 November 2009
Smiths Group Annual General Meeting 17 November 2009 Smiths Group plc AGM 2009 | 12