Smiths Group Plc · LSE:SMIN
Smiths — Shareholder Meeting (November 2018)
21 slides from Smiths's shareholder meeting presentation, Nov 14, 2018
Slide 1: Annual General Meeting 2018
ANNUAL GENERAL SMITHS GROUP PLC MEETING 2018 14 NOVEMBER 2018 www.smiths.com
Slide 2: Disclaimer
2 SMITHS GROUP PLC AGM 2018 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 “Comp
Slide 3: Today's Agenda
3 SMITHS GROUP PLC AGM 2018 TODAY’S AGENDA TODAY’S AGENDA Chairman’s address Sir George Buckley, Chairman Chief Executive review Andy Reynolds Smith, CEO Q&A
Slide 4: Sir George Buckley, Chairman
4 SMITHS GROUP PLC AGM 2018 SIR GEORGE BUCKLEY CHAIRMAN
Slide 5: Andy Reynolds Smith, Chief Executive
5 SMITHS GROUP PLC AGM 2018 ANDY REYNOLDS SMITH CHIEF EXECUTIVE
Slide 6: Return to Growth
6 SMITHS GROUP PLC AGM 2018 RETURN TO GROWTH 2016 2017 2018 2019 AMBITION OUTPERFORMING A NEW SIGNIFICANT RETURN TO SUSTAINABLE OUR CHOSEN DIRECTION PROGRESS GROWTH GROWTH MARKETS
Slide 7: Characteristics of a Smiths Business – Our DNA
7 SMITHS GROUP PLC AGM 2018 CHARACTERISTICS OF A SMITHS BUSINESS – OUR DNA HIGH PROPORTION SUSTAINABLY INCREASING TECHNOLOGY OF AFTERMARKET COMPETITIVE AND DIGITISATION DIFFERENTIATION AND SERVICES ASSET LIGHT TARGETED IN GROWING MARKETS
Slide 8: Strategic Progress
8 SMITHS GROUP PLC AGM 2018 STRATEGIC PROGRESS FY2016 FY2018 MEDIUM TERM HIGH GRADING THE BUSINESSES 9 4 DISPOSALS ACQUISITIONS 60%+ 80%+ 85%+ c. £530m of for c. £620m proceeds RISK OF EXECUTION PORTFOLIO PRIORITISATION • Disposal of Smiths • Morpho synergies ahead of Medical’s sterile water schedul
Slide 9: Innovation
9 SMITHS GROUP PLC AGM 2018 INNOVATION John Crane Smiths Detection dry gas seal Checkpoint CT scanner DIGITAL FORGE Smiths Medical Smiths Medical blood-draw safety Smart device ambulatory pump Smiths Interconnect Flex-Tek edge card contact for floating core duct medical applications
Slide 10: Headline Financial Results
10 SMITHS GROUP PLC AGM 2018 HEADLINE FINANCIAL RESULTS1 £m FY2018 FY2017 REPORTED CHANGE REVENUE 3,213 3,280 (2)% +2% underlying OPERATING PROFIT 544 589 (8)% +3% underlying OPERATING MARGIN 16.9% 18.0% (110) bps +10bps underlying PROFIT BEFORE TAX 487 528 (8)% EPS 90.7p 97.6p (7)% +4% underlying F
Slide 11: Revenue by Division
11 SMITHS GROUP PLC AGM 2018 REVENUE1 BY DIVISION JOHN CRANE SMITHS MEDICAL SMITHS DETECTION +5% Oil & Gas c.+7% (2)% Infusion Systems +4% +1% Air Transportation +20% Non-Oil & Gas c.+3% Vascular Access (4)% Ports & Borders (43)% £881m £885m £793m Vital Care* (6)% Defence (46)% Good growth OE +1% Im
Slide 12: Cash-Flow
12 SMITHS GROUP PLC AGM 2018 CASH-FLOW £m FY2018 FY2017 Comments OPERATING PROFIT1 544 589 CAPEX & DEPRECIATION AND AMORTISATION (8) 3 Asset light WORKING CAPITAL (16) 85 Working capital % sales2: 26% (FY2017: 27%) OTHER 18 18 OPERATING CASH-FLOW1 538 695 99% cash conversion INTEREST & TAXATION1 (12
Slide 13: Strong Balance Sheet
13 SMITHS GROUP PLC AGM 2018 STRONG BALANCE SHEET £m Net Debt/ 967 (8) 302 EBITDA 1.4x (172) (6) 893 (71) 29 • Weighted average debt maturity: 5.5 years1 • Weighted average interest rate: 3.7%1 • Stable credit rating (BBB+/Baa2) Net debt FX Free Cash Flow Acquisitions Divestitures Dividend Other Net
Slide 14: 2019 Outlook
14 SMITHS GROUP PLC AGM 2018 2019 OUTLOOK Sustained growth - John Crane maintaining growth rate - Smiths Medical back to growth in H2 - Growth in Smiths Detection driven by Air Transportation, further H2 weighted - Smiths Interconnect returning to growth - Flex-Tek continued good growth FX tailwind
Slide 15: Intention to Separate Smiths Medical
15 SMITHS GROUP PLC AGM 2018 INTENTION TO SEPARATE SMITHS MEDICAL Smiths Group to concentrate in growing as an Industrial Technology group, united by shared business characteristics and a common operating model Smiths Medical to deliver on its full potential, capitalising on its leading positions, l
Slide 16: Medium Term Ambition
16 SMITHS GROUP PLC AGM 2018 MEDIUM TERM AMBITION OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE FY2018 Ambition FY2018 Ambition Underlying Outperform our Portfolio strength ~80% 85%+ +2% revenue growth chosen markets R&D % sales 4.6% 5-6% Operating margin 16.9% 18-20% Vitality index 13% ~20% ROCE 14
Slide 17: Q&A
Q&A
Slide 18: Poll Vote - Resolutions
18 SMITHS GROUP PLC AGM 2018 POLL VOTE - RESOLUTIONS TODAY’S AGENDA 1. Receive the Report and Accounts 12. Election of Olivier Bohuon as a director 2. Approval of Directors’ Remuneration Policy 13. Election of Dame Ann Dowling as a director 3. Approval of Directors’ Remuneration Report 14. Election
Slide 19: Proxy Votes Cast
19 SMITHS GROUP PLC AGM 2018 PROXY VOTES CAST TODAY’S AGENDA 306 million proxy votes cast 77.48 % of the issued share capital
Slide 20: Poll Closed
20 SMITHS GROUP PLC AGM 2018 POLL CLOSED TODAY’S AGENDA The final results of the poll will be announced and posted on our website shortly
Slide 21: Thank You for Attending
THANK YOU FOR ATTENDING