Smiths Group Plc · LSE:SMIN
Smiths — Shareholder Meeting (November 2015)
15 slides from Smiths's shareholder meeting presentation, Nov 17, 2015
Slide 1: Annual General Meeting 17 November 2015
Annual General Meeting 17 November 2015 please switch off or mute mobile phones and electronic devices [email protected] www.smiths.com 1 Smiths Group plc Annual General Meeting 2015
Slide 2: Forward-looking statements
This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst other thin
Slide 3: Introduction & Overview
Introduction & Overview Andrew Reynolds Smith Chief Executive 3 Smiths Group plc Annual General Meeting 2015
Slide 4: My background
My background • Began as an apprentice in electrical and electronic engineering • Operational, sales and engineering roles in the aerospace, industrial and automotive sectors • From 2002, ran GKN’s Automotive, Land Systems and Powder Metallurgy businesses • Joined the GKN Board in 2007 4 Smiths Grou
Slide 5: Some initial areas of focus
Some initial areas of focus • Inject momentum into top-line growth • Lead on technology differentiation • Run our businesses better • Improve cash generation • Understand the combined strengths of Smiths Group • Develop our people to be great leaders, with the opportunity to be the best they can be
Slide 6: My first few weeks
My first few weeks • Divisional business performance and strategy reviews • Visited all divisions across U.S., EU in first few weeks • Met with management teams and c.1000 Smiths colleagues • Skilled and dedicated people • Impressive technologies • Solid foundations on which to build • Opportunities
Slide 7: FY15 results overview
FY15 results overview Revenue down 2% - challenging conditions in certain markets Headline operating profit up 1% Margin up 50 bps to 17.6% Headline EPS up 5% to 86.1p Cash conversion strong at 95% ROCE up 30 bps at 16.0% Dividend up 2% to 41 pence 7 Smiths Group plc Annual General Meeting 2015
Slide 8: Delivering safety and environmental improvements
Delivering safety and environmental improvements Recordable incident rate trended slightly higher Environmental metrics 1.89 Recordable incident rate • 5 year environmental Lost time incident rate goal period ending in FY2018 1.21 1.03 • FY2013-15 performance 0.86 0.71 0.54 0.66 0.60 0.54 0.55 - Ene
Slide 9: John Crane: Focus on aftermarket delivers resilient performance
John Crane: Focus on aftermarket delivers resilient performance Underlying revenue • Underlying growth in aftermarket services – up 4% • First-fit business underlying revenues declined – -2% down 9% £905m • Margins stable, benefiting from product mix and cost controls Underlying headline profit -2%
Slide 10: Smiths Medical: Strong growth from innovation investment in infusion systems
Smiths Medical: Strong growth from innovation investment in infusion systems Underlying revenue • Strong underlying revenue growth • Reflects recent investment and sales execution in +4% infusion products – underlying sales up 11% £836m • Margins maintained on higher volumes and efficiencies despite
Slide 11: Smiths Detection: Action plans are stabilising performance; margin recovery
Smiths Detection: Action plans are stabilising performance; margin recovery Underlying revenue • Revenue down due to expected variations in contract timing and continued tough trading conditions -7% • Strengthening order book for delivery in FY16 £467m • Margin recovery after FY14’s one-off charges
Slide 12: Smiths Interconnect: Results affected by tough trading and customer cutbacks
Smiths Interconnect: Results affected by tough trading and customer cutbacks Underlying revenue • Revenues affected by cuts in customer spending and some programme slowdowns and delays -9% • Growth in data centres offset by tougher trading in £420m telecoms and connectors • Margins remain under pres
Slide 13: Flex-Tek: Sustained revenue growth; margins affected by product mix and investment
Flex-Tek: Sustained revenue growth; margins affected by product mix and investment Underlying revenue • Revenue growth from specialty heating, US construction and hoses for aerospace applications +4% • Margins slightly down with increased investment in £269m growth and adverse product mix Underlying
Slide 14: Q1 trading statement
Q1 trading statement • Q1 Group revenues declined by 4% compared to the same quarter in the prior year • Impact of challenging oil and gas markets partially offset by relative stability in other core markets • Group operating margin broadly in line with same period last year • Cash conversion for th
Slide 15: [email protected] www.smiths.com
[email protected] www.smiths.com 15 Smiths Group plc Annual General Meeting 2015