Smiths Group Plc · LSE:SMIN
Smiths — Shareholder Meeting (November 2019)
20 slides from Smiths's shareholder meeting presentation, Nov 13, 2019
Slide 1: Smiths Group plc Annual General Meeting
www.smiths.com SMITHS GROUP PLC Annual General Meeting 13 November 2019
Slide 2: Disclaimer
SMITHS GROUP PLC Annual General Meeting 2019 2 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 G
Slide 3: Today's Agenda
SMITHS GROUP PLC Annual General Meeting 2019 3 TODAY’S AGENDA Chairman’s address Sir George Buckley, Chairman Chief Executive’s review Andy Reynolds Smith, Chief Executive View Q&A
Slide 4: Chairman's Address
SMITHS GROUP PLC Annual General Meeting 2019 4 CHAIRMAN’S ADDRESS SIR GEORGE BUCKLEY CHAIRMAN View
Slide 5: Introduction
SMITHS GROUP PLC Annual General Meeting 2019 5 INTRODUCTION ANDY REYNOLDS SMITH CHIEF EXECUTIVE View
Slide 6: Trading Update
SMITHS GROUP PLC Annual General Meeting 2019 6 TRADING UPDATE Continuing Operations1 underlying2 revenue up 11% in Q1 Smiths Medical underlying2 revenue up 2% in Q1 Outlook for the year reaffirmed View 1 Continuing operations exclude Smiths Medical which is accounted for as ‘discontinued operations
Slide 7: FY2020 Outlook
SMITHS GROUP PLC Annual General Meeting 2019 7 FY2020 OUTLOOK A year of further progress Growth H1 weighted Improved operational excellence and cash generation View
Slide 8: Building on Our Strategic Progress
SMITHS GROUP PLC Annual General Meeting 2019 8 BUILDING ON OUR STRATEGIC PROGRESS 2016 2017 2018 2019 H1 AMBITION CY2020 OUTPERFORMING SEPARATION A NEW DIRECTION SIGNIFICANT PROGRESS RETURN TO GROWTH View SUSTAINABLE GROWTH OF MEDICAL OUR CHOSEN MARKETS ✓ ✓ ✓ ✓
Slide 9: Update on Separation of Smiths Medical
SMITHS GROUP PLC Annual General Meeting 2019 9 UPDATE ON SEPARATION OF SMITHS MEDICAL On track to demerge by the end of H1 CY2020 H2 return to Ongoing NPD including Medical CEO growth - up 2% Large Volume Pump submission appointment Key performance milestones achieved: ✓ ✓ ✓ View Good progress on ke
Slide 10: Smiths - A Leading Industrial Technology Company
SMITHS GROUP PLC Annual General Meeting 2019 10 SMITHS - A LEADING INDUSTRIAL TECHNOLOGY COMPANY SUSTAINABLY HIGH PROPORTION TECHNOLOGY INCREASING COMPETITIVE AND OF AFTERMARKET DIFFERENTIATION DIGITISATION ASSET LIGHT AND SERVICES
Slide 11: Smiths - A Leading Industrial Technology Company
SMITHS GROUP PLC Annual General Meeting 2019 11 SMITHS - A LEADING INDUSTRIAL TECHNOLOGY COMPANY • >90% of portfolio in top 3 • ROCE 16-18% through LEADING BUSINESSES leadership positions the cycle IN ATTRACTIVE • Markets growing 3-4% • Progressive dividend MARKETS through-cycle policy covered by FC
Slide 12: Leading Businesses in Attractive Growing Markets
SMITHS GROUP PLC Annual General Meeting 2019 12 LEADING BUSINESSES IN ATTRACTIVE GROWING MARKETS CONTINUED STRENGTHENING OF THE PORTFOLIO1 FY2016 FY2019 c. 60% >90% View TARGETED ORGANIC INVESTMENT REMAINS THE PRIORITY ACCELERATED BY A DISCIPLINED APPROACH TO ACQUISITIONS AND DISPOSALS 11 DISPOSALS
Slide 13: Operational Excellence & Innovation
SMITHS GROUP PLC Annual General Meeting 2019 13 OPERATIONAL EXCELLENCE & INNOVATION OPERATIONAL EXCELLENCE INNOVATION - Working capital at Smiths Digital Forge – ESG-focused 20% of sales - Detection CT accelerating our product hand baggage digital agenda development £150m opportunity View scanner -
Slide 14: Strong Financial Performance
SMITHS GROUP PLC Annual General Meeting 2019 14 STRONG FINANCIAL PERFORMANCE1 IMPROVING GROWTH TRAJECTORY (underlying revenue growth2) ENHANCED MARGINS (operating margin2,3) 3% 3% +300 bps 0% 17.1% 16.7% FY 2016 FY 2017 FY 2018 FY 2019 15.3% 14.1% -2% FY 2016 FY 2017 FY 2018 FY 2019 View STRONG CASH
Slide 15: Driving Long-Term, Sustainable Value
SMITHS GROUP PLC Annual General Meeting 2019 15 DRIVING LONG-TERM, SUSTAINABLE VALUE Value creative LEADING Outperforming our BUSINESSES IN investment ATTRACTIVE markets MARKETS Strong dividend GENERATING View SUPERIOR OPERATIONAL covered by FCF RETURNS EXCELLENCE STRONG 100%+ FINANCIAL FRAMEWORK 18
Slide 16: Questions & Answers
www.smiths.com QUESTIONS & ANSWERS
Slide 17: Poll Vote Resolutions
SMITHS GROUP PLC Annual General Meeting 2019 17 POLL VOTE RESOLUTIONS 1. Adoption of Annual Report FY2019 12. Re-election of Andrew Reynolds Smith as a director 2. Approval of Directors’ Remuneration Report 13. Re-election of Noel Tata as a director 3. Declaration of a final dividend 14. Appointment
Slide 18: Proxy Votes Cast
SMITHS GROUP PLC Annual General Meeting 2019 18 PROXY VOTES CAST 313 million proxy votes cast 78.92% of the issued share capital View
Slide 19: Poll Closed
SMITHS GROUP PLC Annual General Meeting 2019 19 POLL CLOSED The final results of the poll will be announced and posted on our website shortly View
Slide 20: Thank You for Attending
SMITHS GROUP PLC Annual General Meeting 2019 19 www.smiths.com THANK YOU FOR View ATTENDING