Smith & Nephew plc · LSE:SN.
Smith & Nephew — Q1 2017 Earnings Presentation
20 slides from Smith & Nephew's earnings presentation, 2017
Slide 1: 2017 First Quarter Trading Report
2017 First Quarter Trading Report
Slide 2: Forward looking statements
Forward looking statements This document may contain 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", "in
Slide 3: Olivier Bohuon, Chief Executive Officer
Olivier Bohuon Chief Executive Officer
Slide 4: Q1 revenue growth of +3% underlying
Q1 revenue growth of +3% underlying Geographical growth Revenue split Product franchise growth Sports Medicine 7% Joint Repair Arthroscopic Enabling Tech 1% US -1% Trauma & Extremities 5% Other Surgical 7% Knees 5% 1% Est OUS Hips 0% 1% AWC -8% Emerging AWB 12% 16% AWD 0% 5% 10% 15% -10% 0% 10% 20%
Slide 5: Sports Medicine, Trauma & OSB
Sports Medicine, Trauma & OSB • Q1 revenue performance ‐ Sports Medicine Joint Repair +7% ($150m) ‐ Arthroscopic Enabling Technologies (AET) -1% ($153m) ‐ Trauma & Extremities +5% ($120m) ‐ Other Surgical Businesses* +7% ($43m) • Commentary ULTRABUTTON◊ Adjustable Fixation Device ‐ shoulder portfoli
Slide 6: AAOS 2017
AAOS 2017 LENS◊ WEREWOLF◊ TRIGEN◊ INTERTAN◊ Surgical Imaging System COBLATION◊ System Intertrochanteric Antegrade Nail JOURNEY◊ NAVIO◊ Active Knee Solutions Surgical System 6
Slide 7: Reconstruction
Reconstruction • Q1 revenue performance ‐ Knees: global +5%, US +4%, OUS +7% ($244m) ‐ Hips: global +0%, US +1%, OUS -2% ($152m) • Commentary ‐ continued strong growth in global Knees ‐ JOURNEY II XR receiving excellent feedback and further extensions of the JOURNEY II family under way ‐ REDAPT◊ Rev
Slide 8: Advanced Wound Management
Advanced Wound Management • Q1 revenue performance ‐ Advanced Wound Care +1% ($170m) ‐ Advanced Wound Bioactives -8% ($66m) ‐ Advanced Wound Devices +16% ($44m) • Commentary ‐ AWC: strong US growth partly offset by China and Europe ‐ AWB: weak first quarter, as expected ‐ AWD: PICO◊ trends continue
Slide 9: Graham Baker, Chief Financial Officer
Graham Baker Chief Financial Officer
Slide 10: Guidance
Guidance • Full Year outlook ‐ full year guidance unchanged ‐ 3-4% underlying sales growth ‐ 20-70bps trading profit margin improvement ‐ slightly more favourable foreign exchange impact on sales of -0.6%* (from -1%) • Q2 notes ‐ one fewer selling day compared to Q2 2016 ‐ foreign exchange impact on
Slide 11: Olivier Bohuon, Chief Executive Officer
Olivier Bohuon Chief Executive Officer
Slide 12: A stronger Smith & Nephew
A stronger Smith & Nephew • iple growth drivers A fundamentally …in a unique, strong, …with multiple drivers transformed Group… global position… of higher growth • Sports Medicine leadership • innovative Knee portfolio including robotics • outcome-oriented Advanced Wound Management strategy • Emergi
Slide 13: Questions
Questions a 5 e 7.4 smith&nephew Supporting healthcare professionals for over 150 years
Slide 14: Appendices
>t smith&nephew Appendices
Slide 15: Franchise revenue analysis
Franchise revenue analysis 2016 2017 Full Q1 Q2 Q3 Q4 Q1 Year Growth Growth Growth Growth Growth Revenue Growth % % % % % $m % Sports Medicine, Trauma & OSB 5 4 4 1 3 466 4 Sports Medicine Joint Repair 11 10 8 5 8 150 7 Arthroscopic Enabling Technologies 4 4 2 (3) 2 153 (1) Trauma & Extremities (7)
Slide 16: Regional revenue analysis
Regional revenue analysis 2016 2017 Full Q1 Q2 Q3 Q4 Q1 Year Growth Growth Growth Growth Growth Revenue Growth % % % % % $m % Geographic regions US 8 4 2 0 3 555 1 Other Established Markets 4 1 0 (3) 0 414 1 Established Markets 6 3 1 (1) 2 969 1 Emerging Markets (6) (2) 6 3 0 173 12 Group 4 2 2 (1)
Slide 17: 2017 technical guidance
2017 technical guidance Guidance At Year End Update Restructuring costs Nil No change Acquisition and integration costs c. $5m No change Amortisation of acquisition intangibles c. $120m No change Income from associates ~$0m No change Net interest $50m - $55m No change Other finance costs Similar to
Slide 18: Business days per quarter
Business days per quarter Q1 Q2 Q3 Q4 Full Year 2016 64 64 63 60 251 2017 64 63 63 60 250 Year-on-year differences in the number of trading days typically impacts our surgical businesses in the Established Markets more than our wholesaler and distributor-supported businesses. 18
Slide 19: Exchange rates
Exchange rates Q1/16 Q2/16 Q3/16 Q4/16 FY/16 Q1/17 $:€ Period end 1.14 1.11 1.12 1.05 1.05 1.07 Average 1.10 1.13 1.12 1.08 1.11 1.07 $:£ Period end 1.42 1.33 1.30 1.23 1.23 1.25 Average 1.43 1.43 1.31 1.24 1.35 1.24 19
Slide 20: Smith&nephew: Supporting healthcare professionals for over 150 years
a! ° 74 smith&nephew Supporting healthcare professionals for over 150 years 20