Smiths Group Plc · LSE:SMIN
Smiths — Non-Deal Roadshow (November 2004)
17 slides from Smiths's roadshow presentation, Nov 24, 2004
Slide 1: Smiths Detection
Smiths Detection Meeting with investors and relationship banks Wiesbaden, Wednesday 24 November 2004 Presentation by: Stephen Phipson, Group Managing Director, Smiths Detection www.smithsdetection.com
Slide 2: Executive team
Executive team Stephen Phipson Group Managing Director, Smiths Detection Based London, UK Hans Linkenbach President, Smiths Detection International Based - Wiesbaden, Germany Markets - Civil (exc. N.A.); Technologies - X-ray Bill Mawer President, Smiths Detection NA/Military Based - New Jersey, USA
Slide 3: History of Smiths Detection
History of Smiths Detection £m Sales growth 400 Cyrano and SensIR acquisitions Heimann 300 acquisition 200 Barringer 100 acquisition ETG acquisition 0 1999 2000 2001 2002 2003 2004 Smiths Detection Wiesbaden,Nov04 3
Slide 4: Markets
Markets Smiths Detection sales 2004 Military Airports Critical infrastructures Airports Ports and borders Military Critical First responders infrastructures First responders Other Double digit market Ports and borders growth in near term Smiths Detection Wiesbaden,Nov04 4
Slide 5: Market focus for wide product range
Market focus for wide product range Airports & Military & first Ports & Critical transportation responders borders infrastructure Smiths Detection Wiesbaden,Nov04 5
Slide 6: Global business generating strong sales
Global business generating strong sales 4000+ Ionscans for explosives detection; Aftermarket contract with Boeing; Mobile x-ray systems for Customs; ACADA for DoD; Bio detection systems for US Postal Service Checked baggage X-ray systems, Frankfurt, Munich and Hamburg Airports EDS and Ionscans for B
Slide 7: Global presence
Global presence Maximum market reach with global manufacturing/distribution/sales offices Smiths Detection can develop market leading products through its: - access to international customer views on requirements - access to world-wide technologies/academia Global presence Regional offices/service s
Slide 8: Market dynamics
Market dynamics Characteristics of business operations US • Federal approach to Homeland security. $28bn budget • Developing markets - First Responders/ Critical infrastructure / Rail security • Global role of US Military International • Global terrorism affecting all nations • International regulat
Slide 9: Market opportunities
Market opportunities Projects/funding announced: Joint Chemical Agent Detector - US DoD, 270,000units, $500m TSA: People screening - US airports, 400 units, $60m UK Marine Bio Detection System - £60m Chemical detectors - US Government/public buildings, $50m Burgeoning First Responders mark
Slide 10: Competitive position
Competitive position X-Ray EDS/EDtS Cargo Explosives Chem Bio (Checkpoint) Trace Smiths Detection GE (inc InVision) L3 OSI General Dynamics SAIC AS&E no.1 or 2 player Smiths has: • Broadest range of technologies • Widest market access Smiths Detection Wiesbaden,Nov04 10
Slide 11: New technologies - partnerships
New technologies - partnerships Teaming agreement with TeraView • Leader in teraherz technology • Teraherz waves produce an image and allow chemical composition to be determined • Initial product is wand for detection of metals/ceramics and explosives Smiths Detection Wiesbaden,Nov04 11
Slide 12: New technologies - acquisitions
New technologies - acquisitions Purchased Cyrano Science for $15m • New detector technology • Miniature sensor platforms • Networking of multiple sensors Purchased SensIR for $75m • Fast accurate analysis and identification of solids and liquids • Strong presence with First Responders • New markets
Slide 13: New technologies - investment
New technologies - investment Customer funded: • $4m from Department of Homeland Security • TSA funding in people screening Sentinel enhancement & ticket scanner • New European funding available Internally funded: • R&D last year increased to 7% of sales • Next generation bio detection • Mail screen
Slide 14: New markets
New markets Scientific • New business unit developing Life Sciences, Cyrano and SensIR product portfolio • Cleaning validation • Laboratory analysis • Industrial chemical identification • Low volume sales already Other opportunities • Food processing • Water monitoring Smiths Detection Wiesbaden,Nov
Slide 15: Market growth
Market growth Smiths Detection actions to maintain market leadership... Commercialise technology to develop rugged, reliable products Match customer priorities: eg: greater sensitivity; fewer false positives; detect additional threats; more automation; higher throughputs; faster identification; mini
Slide 16: Summary
Summary Key player in defense and homeland security in North America as industry consolidates International recognition in civil markets bringing significant new business Further opportunities in international military markets Rapidly expanding product range through acquisition and development Smith
Slide 17: Smiths Detection
Smiths Detection www.smithsdetection.com Smiths Detection Wiesbaden,Nov04 17