Financial Performance - Group revenue for 2022 was $5,215 million, with reported growth of +0.1% and underlying growth of +4.7%[6]. - Operating profit decreased by 24% to $450 million, with an operating profit margin of 8.6%, down 280 basis points[6][41]. - Trading profit was $901 million, a decline of 4%, with a trading profit margin of 17.3%, down 70 basis points[6][41]. - Earnings per share (EPS) was 25.5¢, a decrease of 57%, while adjusted earnings per share (EPSA) was 81.8¢, an increase of 1%[6]. - Cash generated from operations fell by 45% to $581 million, and R&D investment decreased by 46% to $345 million[6]. - Free cash flow decreased to $56 million from $410 million in the prior year, with a trading profit to cash conversion ratio of 49% compared to 88% in 2021[151]. - The Group's net debt increased from $2,049 million at the beginning of 2022 to $2,535 million at the end of 2022, an increase of $486 million due to dividend payments, acquisitions, and share repurchases[153]. Revenue and Growth Initiatives - The company reported that over 60% of revenue growth in 2022 came from products launched in the last five years[41]. - A 12-point plan was announced to drive higher growth and improve productivity, focusing on strengthening foundations, accelerating growth, and transforming for long-term growth[42]. - The company targets an underlying revenue growth of over 5% in the medium term[89]. - For 2023, the Group expects underlying revenue growth in the range of 5.0% to 6.0%, driven by strong growth in Sports Medicine & ENT and Advanced Wound Management franchises[157]. - The company expects to deliver both faster revenue growth and margin expansion in the coming year as part of its 12-point plan[66]. Dividends and Shareholder Returns - The total dividend per share for 2022 remained unchanged at 37.5¢, with a final dividend of 23.1¢ and an interim dividend of 14.4¢[26]. - The total distribution of dividends per share remained unchanged at 37.5¢, consistent with the previous year[94]. - The Group purchased a total of 10.1 million ordinary shares at a cost of $158 million in 2022[151]. Sustainability and ESG Efforts - The company is committed to achieving net zero carbon emissions by 2045, with a new ESG Operating Committee established in January 2023 to oversee sustainability efforts[31]. - The company aims to achieve a 70% reduction in Scope 1 and Scope 2 greenhouse gas emissions by 2025, with a current reduction of 27% since 2019[119]. Product Development and Market Position - The Advanced Wound Management franchise has consistently outperformed the market since 2021, with significant growth opportunities identified, particularly in Negative Pressure Wound Therapy[47]. - Smith+Nephew launched 12 new products in 2022, which is a key performance indicator for driving future revenue growth[108]. - The company made a significant R&D investment of $345 million in 2022, focusing on new product launches from its organic pipeline and acquisitions[107]. - The company introduced the OR3O◊ Dual Mobility with OXINIUM DH Technology as part of its new product development[198]. - A new high technology orthopaedics manufacturing facility was opened in Malaysia, and plans for an Advanced Wound Management facility in the UK were announced[46]. Market Performance and Challenges - Orthopaedics revenue for 2022 was $2,113 million, a decline of 2.0% from $2,156 million in 2021, with a 390bps headwind from foreign exchange[200]. - The overall performance in 2022 was impacted by the implementation of the hip and knee volume-based procurement program in China[200]. - The company continues to focus on strategic initiatives to enhance market expansion and product offerings[200]. - The Orthopaedics market is valued at approximately $14.7 billion annually, with the Group's proprietary OXINIUM material providing a competitive advantage[194]. - The Trauma & Extremities market is worth over $12.7 billion annually, with the Group positioned to compete effectively in this segment[196].

Financial Performance - Group revenue for the fiscal year ended December 31, 2022, was $5,215 million, reflecting a 0.1% increase[6] - Operating profit decreased by 4% to $901 million, with an operating profit margin of 17.3%, down 70 basis points[6] - Cash generated from operations was $581 million, representing a 45% decline compared to the previous year[6] - Earnings per share (EPS) decreased by 57% to 25.5 cents, while adjusted earnings per share (EPSA) increased by 1% to 81.8 cents[6] - Operating profit decreased by 24% to $450 million, with an operating profit margin of 8.6%, down 280 basis points[80] - Trading profit was $901 million, representing a decline of 4%, with a trading profit margin of 17.3%, down 70 basis points[80] - Reported profit before tax was $235 million, a decrease of $351 million from 2021, after adjusting for a $109 million impairment loss[119] - The trading profit margin was below the updated guidance of 17.5% provided on July 28, 2022[118] - Trading profit for 2022 was $901 million, representing a margin of 17.3%, down from 18.0% in 2021[123] - Basic earnings per share (EPS) decreased by 57% to 25.5¢ due to an impairment loss in the investment in Bioventus, while adjusted EPS (EPSA) increased by 1% to 81.8¢[128] Research and Development - Research and Development (R&D) investment was reported at $450 million, a 24% decrease year-over-year[6] - R&D investment in 2022 was $345 million, with 12 new product launches contributing to future revenue growth[104] - More than 60% of the revenue growth in 2022 came from products launched in the last five years, indicating a strong investment in innovation[43] - The company aims to enhance its product offerings through innovation and strategic acquisitions[20] Strategic Initiatives - The company plans to execute a 12-point plan aimed at driving higher growth and improving productivity, focusing on fixing Orthopaedics and accelerating growth in Advanced Wound Management and Sports Medicine & ENT[44][46] - A 12-point plan was announced to fundamentally change operations, aiming for higher growth and improved productivity[71] - The 12-point plan aims to achieve over $200 million in annual savings by 2025 through efficiency and productivity enhancements[127] Market Position and Growth - Smith+Nephew achieved 4.7% underlying revenue growth in 2022, with an operating profit margin of 8.6% and a trading profit margin of 17.3%[43] - The company targets underlying revenue growth of 5%+ in the medium term[89] - The company expects underlying revenue growth for 2023 in the range of 5.0% to 6.0%, with strong growth anticipated in Sports Medicine & ENT and Advanced Wound Management[154] Sustainability and Corporate Responsibility - The company emphasizes sustainability and aims to minimize its environmental impact while addressing stakeholder requirements[20] - The company is committed to achieving net zero carbon emissions by 2045, with a strengthened executive oversight of sustainability initiatives[34] - The company is committed to achieving net zero carbon emissions by 2045 and is developing a Scope 3 emissions reduction roadmap[70] Operational Challenges - The company faced challenges in 2022 due to macroeconomic factors, including higher inflation and supply chain issues, impacting growth and trading profit margin[43] - The company is addressing performance issues in its Orthopaedics franchise to improve productivity and support margin expansion[24][46] Acquisitions and Investments - The company acquired Engage Surgical in January 2022, enhancing its portfolio with a unique position in the US knee system market[105] - The acquisition of Engage Surgical was completed for a maximum consideration of $135 million, enhancing the company's innovation strategy[131] Employee Engagement - The employee engagement score was 4.12, placing the company in the 73rd percentile of Gallup's database[106] Product Development and Innovation - New product launches in orthopaedics include the expansion of the robotics-enabled CORI Surgical System, with FDA clearance for a revision knee indication[58] - REGENETEN showed an 86% reduction in rotator cuff re-tear rates at 12 months in interim results from a randomized controlled trial[59] - The company expects to launch the AETOS Total Shoulder System in 2023, expanding its presence in the Shoulder Replacement market[192] - Smith+Nephew's CORI Surgical System is the first robotic-assisted surgery system indicated for revision knee procedures in the US, positioning the company as a leader in robotic-assisted surgery[191] Facilities and Training - A new Smith & Nephew Academy is set to open in 2023, furthering its commitment to medical education[19] - The company plans to open a new Smith+Nephew Academy in Munich in 2023, following the establishment of a similar facility in Singapore[132] - The company opened the Smith+Nephew Academy Singapore in November 2022, enhancing its medical education and digital innovation capabilities in the Asia-Pacific region[184] Orthopaedics Segment Performance - Orthopaedics revenue for Smith+Nephew was $2,113 million in 2022, a decline of 2.0% on a reported basis, but an increase of 1.9% on an underlying basis[193] - The Knee Implants segment generated $899 million in revenue, reflecting a growth of 2.5%, while Hip Implants revenue was $584 million, down 4.4%[193] - Smith+Nephew's Orthopaedics trading profit increased to $383 million in 2022, up from $367 million in 2021[193] - The Orthopaedics franchise has a trading profit margin of 18.1%, which is below that of other franchises[197] - The company aims to accelerate growth in Joint Reconstruction and Robotics by focusing on robotically enabled procedures[199] - Smith+Nephew's Orthopaedics franchise competes against major players such as Stryker, Zimmer Biomet, and DePuy Synthes[200]

Financial Data and Key Metrics Changes - Revenue for the full year was $5.2 billion, reflecting a 4.7% growth on an underlying basis compared to 2021, while reported revenue growth was flat at 0.1% due to foreign exchange headwinds [12][81] - Trading profit was $901 million, resulting in a trading margin of 17.3% [81] - Adjusted earnings per share grew by 1.1% to $0.818 [81] Business Line Data and Key Metrics Changes - Orthopaedics grew by 4.1% underlying, with significant contributions from new product launches [4][5] - Sports Medicine and ENT franchise grew by 9.2%, with Joint Repair growing 11.5% [11] - Advanced Wound Management showed strong growth, with Advanced Wound Devices growing 14.9% [45] Market Data and Key Metrics Changes - The U.S. market grew by 4.8%, established markets grew by 7.3%, and emerging markets grew by 12.1%, largely driven by a return to growth in China [2][3] - The company expects continued above-market growth in Sports Medicine and Advanced Wound Management, with further improvement in Orthopaedics [20] Company Strategy and Development Direction - The company is implementing a 12-point plan aimed at transforming operations and driving higher growth, targeting consistent underlying growth of 5% or higher [24][30] - Focus on innovation and product launches, with 25 expected in 2023, to enhance market position and drive growth [67] - The strategy includes optimizing pricing and cost savings to achieve a trading margin in excess of 20% by 2025 [53][68] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges from inflation and supply chain disruptions but remains optimistic about growth and margin expansion in 2023 [8][52] - The company expects to see benefits from cost actions and operational improvements throughout 2023, with a stronger second half anticipated [95] - Management emphasizes the importance of innovation, with over 60% of revenue growth in 2022 coming from products launched in the last five years [85] Other Important Information - The company faced headwinds from semiconductor and resin shortages, but improvements in supply chain performance are expected [1][16] - The company plans to reduce inventory levels as part of its 12-point plan, with a focus on managing raw material availability [14][49] Q&A Session Summary Question: Can you provide more information on the timing of margin components? - Management expects to see benefits from G&A and sales and marketing cost actions starting in 2023, with manufacturing network optimization having a more back-end loaded impact [94][95] Question: What is the rationale for the 5% plus organic growth ambition? - Management cites strong performance in 2022 and a robust pipeline of products as key drivers for confidence in achieving this growth target [97][99] Question: How do you see the sustainability of the turnaround in Orthopaedics? - Management indicates that a mix of pricing improvements and addressing historical product gaps will be crucial for sustainable growth in Orthopaedics [108][109]

Smith & Nephew plc (NYSE:SNN) Q3 2022 Results Conference Call November 3, 2022 4:30 AM ET Company Participants Deepak Nath - Chief Executive Officer Anne-Francoise Nesmes - Chief Financial Officer Conference Call Participants Hassan Al-Wakeel - Barclays Jack Reynolds - RBC David Adlington - JPMorgan Julien Dormois - BNP Paribas Robert Davies - Morgan Stanley Chris Gretler - Credit Suisse Deepak Nath Good morning. Welcome to the Smith & Nephew Third Quarter Call. I'm Deepak Nath, and with me is our Chief Fin ...

Smith & Nephew plc (NYSE:SNN) Q2 2022 Results Conference Call July 28, 2022 3:30 AM ET Company Participants Deepak Nath - Chief Executive Officer Anne-Francoise Nesmes - Chief Financial Officer Conference Call Participants Patrick Wood - Bank of America Jack Reynolds-Clark - RBC Hassan Al-Wakeel - Barclays Julien Dormois - BNP Paribas Chris Gretler - Credit Suisse David Adlington - JP Morgan Deepak Nath I'll just draw your attention to the safe harbor statement on the slide that's about to pop up in front o ...

Product Safety and Compliance - In 2021, Smith+Nephew reported 13 product recalls globally, impacting a total of 23,832 units[1645] - Smith+Nephew received 2 Form 483s from the FDA in 2021, with no warning letters or seizures reported[1645] - The FDA's MedWatch database is used to report product safety alerts and recalls[1645] - The company reported no fatalities related to products as per FDA requirements[1645] - All impacted products from recalls were either removed from the market or corrected per applicable regulations[1645] - Smith+Nephew emphasizes compliance with current Good Manufacturing Practices (cGMP) in its operations[1645] - All direct and third-party manufacturing locations of Smith+Nephew are certified to ISO13485, ensuring product quality and compliance[1646] Ethical Practices and Governance - Smith+Nephew's code of ethics governs the promotion of off-label use of products, detailed in their Code of Conduct[1645] - The company emphasizes the importance of maintaining a code of ethics governing interactions with healthcare professionals[1648] - Smith+Nephew did not incur any monetary losses due to legal proceedings associated with bribery or corruption in 2021[1648] - Smith+Nephew's financial statements reflect a commitment to transparency and compliance with international financial reporting standards[1650] - The independent registered public accounting firm KPMG LLP has provided consent, indicating ongoing external oversight of financial reporting[1671] - Certifications from key executives were filed, reinforcing accountability and governance standards within the organization[1671] Sustainability Initiatives - Smith+Nephew's sustainability report includes information on ethical marketing practices[1645] - The company tracks regulatory changes regarding chemicals in products and incorporates sustainability reviews in the New Product Development phase[1646] - Smith+Nephew's sustainability targets and strategy are detailed in their 2021 Sustainability Report[1647] - The company emphasizes the use of renewable, biodegradable inks that emit fewer Volatile Organic Compounds (VOCs) compared to traditional inks, aligning with sustainability goals[164] - The company has implemented takeback schemes for products where required by law, although it does not measure the amount of products reused or recycled for business purposes[1646] Financial Reporting and Structure - Smith & Nephew plc reported a total amount of securities exceeding 10% of its total assets on a consolidated basis, indicating significant leverage in its capital structure[1668] - The company has not issued any long-term debt instruments that would exceed the 10% threshold of total assets, reflecting a conservative approach to debt management[1668] - Smith & Nephew plc is committed to providing the SEC with copies of any instruments defining the rights of holders of its long-term debt upon request, ensuring transparency[1668] - The company has a history of various agreements and contracts, including a material contract for a merger dated March 12, 2019, which indicates ongoing strategic initiatives[1668] - The company has filed its Annual Report on Form 20-F, certifying compliance with all filing requirements[1674] Corporate Events and Reporting - Smith+Nephew's Annual General Meeting (AGM) is scheduled for April 13, 2022, at 2:00 PM, with electronic participation options available for shareholders[159]. - The first quarter Trading Report will be released on April 28, 2022, followed by the payment of the 2021 final dividend on May 11, 2022[163]. - The half-year results will be announced on July 28, 2022, and the third quarter Trading Report is set for November 3, 2022[163]. - The Global Share Plan 2020 was filed, indicating a focus on employee engagement and retention through equity participation[1671] Operational Risks and Supply Chain - Smith+Nephew's supply chain risks are identified as Principal Risks within its Enterprise Risk Management process[1646] - The company maintains traceability in its distribution chain through Unique Device Identifiers or HIBC barcodes[1646] - The company has a diverse range of principal subsidiaries, which may enhance its market reach and operational capabilities[1671] Financial Data Presentation - The Inline XBRL Instance Document contains embedded XBRL tags for financial data presentation[1673] - The XBRL Taxonomy Extension Schema Document is included for detailed financial reporting[1673] - The XBRL Taxonomy Extension Calculation Linkbase Document is provided for calculation definitions[1673] - The XBRL Taxonomy Extension Label Linkbase Document is available for labeling financial data[1673] - The XBRL Taxonomy Extension Presentation Linkbase Document is included for presentation formats[1673] - The XBRL Taxonomy Extension Definition Linkbase Document is provided for definitions of financial terms[1673] - The Cover Page Interactive Data File is formatted as Inline XBRL and contained in Exhibit 101[1673]

Share Buyback Program - Smith & Nephew plc has initiated a USD $125 million share buyback program announced on February 22, 2022[4] - The company repurchased 493,119 ordinary shares on March 4, 2022, at a volume-weighted average price of £12.3887 per share[7] - Since February 23, 2022, the total shares purchased amount to 1,361,355 at a total cost of £17,267,533.81[7] - Following the recent purchases, the company holds 6,650,579 shares in Treasury[8] - The total issued share capital consists of 878,554,439 ordinary shares, excluding treasury shares[8]

Smith & Nephew plc (NYSE:SNN) Q4 2021 Earnings Conference Call February 22, 2022 3:30 AM ET Company Participants Roland Diggelmann - Chief Executive Officer Anne-Francoise Nesmes - Chief Financial Officer Conference Call Participants Hassan Al-Wakeel - Barclays Tom Jones - Berenberg Veronika Dubajova - Goldman Sachs Lisa Clive - Bernstein David Adlington - JPMorgan Chris Gretler - Credit Suisse Operator Hello all and a warm welcome to the Smith & Nephew Fourth Quarter and Full Year 2021 Results Call. My nam ...

Smith Nephew Fourth Quarter and Full Year 2021 Results Forward looking statements and non-IFRS measures This document may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected revenue growth and trading profit margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions are generally ...

Smith & Nephew plc (NYSE:SNN) Q2 2021 Results Conference Call July 29, 2021 3:30 AM ET Company Participants Roland Diggelmann - Chief Executive Officer Anne-Francoise Nesmes - Chief Financial Officer Conference Call Participants Patrick Wood - Bank of America Chris Gretler - Credit Suisse Tom Jones - Berenberg Kyle Rose - Canaccord Michael Jungling - Morgan Stanley Hassan Al-Wakeel - Barclays David Adlington - JPMorgan Kit Lee - Jefferies Veronika Dubajova - Goldman Sachs Operator Please note, certain state ...