Smith & Nephew plc · LSE:SN.
Smith & Nephew — JP Morgan Healthcare Conference 2010
16 slides from Smith & Nephew's conference presentation, Jan 11, 2010
Slide 1: JP Morgan Healthcare Conference
JP Morgan Healthcare Conference 11 January 2010
Slide 2: Forward looking statements
Forward looking statements This presentation contains certain "forwardlooking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. In particular, statements regarding expected revenue growth and trading margins discussed under "Outlook" are forwardlooking statem
Slide 3: Dave Illingworth, Chief Executive
Dave Illingworth Chief Executive
Slide 4: Overview of Smith & Nephew
Overview of Smith & Nephew 2008 Advanced Wound Sales $3,801m Management Trading profit $776m Advanced treatments for hard to heal wounds Sales $843 million 22% 57% Orthopaedics Endoscopy Reconstruction ($1,492m) Products for minimally 21% Hip, knee & shoulder products invasive surgery Trauma ($421m)
Slide 5: Our position – leading share and a diversified business
Our position – leading share and a diversified business #1 #2 #3 #4 #5 Sales by geography Orthopaedics Rest of the world Recon Zimmer DePuy Stryker S&N Biomet USA Trauma Synthes Stryker S&N DePuy Zimmer 19% Clinical 44% Genzyme S&N Sanofi Fidia Therapies Endoscopy 28% Sports S&N Arthrex Mitek Stryke
Slide 6: Serving large markets with strong growth drivers
Serving large markets with strong growth drivers $26 billion global market Growth drivers intact Demographics Prevalence ) Osteoarthritis ) Obesity “By 2050, the number ) Diabetes of people over the age Advanced of 65 around the world Wound Lifestyle will have tripled to Management ) Activity levels
Slide 7: Our strategic pillars for success
Our strategic pillars for success Ortho Endo AWM Biologics Customer Led Focus on our customers, anticipate and innovate to deliver on their needs, outperform our markets Streamline processes, implement practices to Efficient improve operating margins and free up resources to invest in the business D
Slide 8: Medical Education – KLEOS services
Customer Led Medical Education ) KLEOS services Face to face: Courses, Regionalisation: Customised events, VSPs, Observership, educational material Fellowships Live surgeries: Live Webcast over the Website Community: Keep the KLEOS community informed Reports: Track Literature service: Reduction worl
Slide 9: "No finishing line" – trading profit margin
Efficient “no finishing line” 26% 25% Exit 2010 24% H1 2006 H1 2009 23% Group 19.3% Group 22.0% Ortho 22.8% Ortho 23.9% 22% Endo 18.1% Endo 22.0% AWM 13.0% AWM 17.0% 21% Base year 20% 19% 18% 2004 2005 2006 2007 2008 2009 2010 2011 Annual Group trading profit margin H1 Group trading profit margin 9
Slide 10: Investing for growth: emerging markets
Investing for growth emerging markets Emerging market revenues and growth 2008 Revenue by Regions 300 30% Europe Africa/ 250 25% Middle East 15% Underlying growth rate (%) 200 20% Revenues (US$m) Central & 31% 150 15% South 100 10% America 19% 50 5% 0 0% 35% 2006 2007 2008 Revenue Underlying growth
Slide 11: Smith & Nephew in China
Efficient Investing for growth Smith & Nephew in China 1994: Establish S&N Office in Shanghai 2004: Teams organised along GBU lines, but essentially approach still opportunistic 2007: Plus acquisition grants entre to Ortho Recon mid market – S&N switches to Strategic Mould, formalise thinking and co
Slide 12: Negative Pressure
Investing for growth Negative Pressure 2007 Integrate BlueSky (“Freedom to operate”) – Manufacturing configuration – Operational structure 2008 Build capability (“NPWT works”) – Launch globally – Refining market insight 2009 Build brand (“Enhancing product, broadening range”) – Innovation : new prod
Slide 13: Biologics – formation and position
Investing for growth Biologics – formation and position • Recognised fragmented resources were Areas of focus sub)optimal • Formed Biologics from • York based Research Centre OA and Cartilage • Individual business unit research programmes Bone Healing • New Head Office in Raleigh/Durham • Clinical T
Slide 14: Where we are now
Where we are now • Market leading positions across our businesses • Well developed and integrated efficiency program • Sustainable margin improvement • Innovative products and development pipeline • Geographic spread with strong potential • Broad based orthopaedics and woundcare business 14
Slide 15: Our opportunity
Our opportunity We want to be the company that: • Anticipates and proactively addresses customer needs • Develops world class products • Creates value for our customers and ourselves • Works across boundaries to exceed customer expectations • Is flexible and highly efficient • Is a great place to wo
Slide 16: We are smith&nephew
We are smith&nephew
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