Smiths Group Plc · LSE:SMIN
Smiths — Shareholder Meeting (November 2010)
13 slides from Smiths's shareholder meeting presentation, Nov 16, 2010
Slide 1: Annual General Meeting 16 November 2010
Annual General Meeting 16 November 2010 Smiths Group plc AGM 2010 | 1 investor.relations@smiths.com www.smiths.com
Slide 2: Forward-looking statements
This presentation contains certain statements that are forward-looking statements. They appear in a number of places throughout this presentation and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst ot
Slide 3: Introduction
Introduction Philip Bowman Chief Executive Smiths Group plc AGM 2010 | 3
Slide 4: Business highlights
Business highlights Reported sales up 4%; underlying flat - driven by 5% growth in H2 Margins improve 210 basis points to 17.8% - a ten year high Positive margin development across all divisions Headline operating profit up 18%, underlying up 14% Significant improvement in cash generation - free cas
Slide 5: A primary focus on safety is delivering continued improvements
A primary focus on safety is delivering continued improvements Recordable & lost time incident rates have been improving Lost time incident rate Recordable incident rate Incident rate 2004 2005 2006 2007 2008 2009 2010 Smiths Group plc AGM 2010 | 5
Slide 6: Group: Operational improvement is delivering results
Smiths Group: Operational improvement is delivering results Sales growth (£m) Improving margins (%) Strong free cash-flow (£m) Enhancing returns on capital (%) Smiths Group plc AGM 2010 | 6
Slide 7: Detection: Sales growth and margin improvement
Smiths Detection: Sales growth and margin improvement • Underlying sales up 13%; margins up 310bps to 15.7% • Transportation rebounded strongly – new contract wins • Ports and borders up 66% as order delays eased • Military benefited from chemical agent detector sales • R&D increased to support new
Slide 8: John Crane: Margins benefiting from restructuring programme
John Crane: Margins benefiting from restructuring programme • Margins up 260bps to 20.7%; underlying sales down 5% • Savings generated by global restructuring programme • Aftermarket service revenues grew 1% • First-fit original equipment sales fell 15% • Expanding our global network: sales and serv
Slide 9: Medical: Delivering positive sales momentum and margin growth
Smiths Medical: Delivering positive sales momentum and margin growth • Underlying sales grew 2%; margins up 180bps to 21.5% • CADD®-Solis smart pump performing well • Growth in temperature management and airway • Safety needle products gained from H1N1 vaccination • Restructured to create global man
Slide 10: Interconnect: Delivering margin growth; launching new products
Smiths Interconnect: Delivering margin growth; launching new products • Underlying sales down 3%; margins up 80bps to 18.2% • Operational efficiencies and procurement initiatives • Mil/aero boosted by KuStream broadband antenna • Wireless telecoms slowed, test equipment grew • Interconnect Devices I
Slide 11: Flex-Tek: restructuring enhances margins in tough sales environment
Flex-Tek: restructuring enhances margins in tough sales environment • Margins up 180bps to 11.1%; underlying sales down 6% • Difficult trading environment with improving trend • Residential construction and appliances revival • Declines in sales of aerospace components • Launched new products: Flash
Slide 12: Group: Opportunities to create value
Smiths Group: Opportunities to create value Delivering operational efficiencies Cash generation Investing in future growth Smiths Group plc AGM 2010 | 12
Slide 13: Annual General Meeting 16 November 2010
Annual General Meeting 16 November 2010 Smiths Group plc AGM 2010 | 13 investor.relations@smiths.com www.smiths.com