Financial Data and Key Metrics Changes - Full year revenue was $4.6 billion, reflecting a 12.1% underlying decline and an 11.2% reported decline, primarily due to COVID-19 impacts [7][27] - Trading profits decreased by 42% to $683 million, resulting in a trading margin of 15% [28] - Adjusted earnings per share were $0.646, a decline of 37% compared to the previous year [29][36] Business Line Data and Key Metrics Changes - Orthopaedics, the largest franchise, saw a revenue decline of 14% to $1.9 billion [31] - Sports Medicine and ENT revenue declined by 13% to $1.3 billion [31] - Advanced Wound Management remained resilient with a decline of only 0.1% [31] Market Data and Key Metrics Changes - In the US, revenue was impacted by the second wave of COVID-19, with around 20 states implementing restrictions on elective surgeries [12][13] - Other established markets declined by 6.2%, with variations by country; UK and Japan improved while France and Italy saw slowdowns [14] - Emerging markets also faced declines, although China showed strong end-user demand [15] Company Strategy and Development Direction - The company plans to maintain investment in R&D and M&A to drive mid-term growth, with an intense period of new product launches planned for 2021 and beyond [6][48] - Focus on maximizing the potential of current product portfolio and delivering value from recent acquisitions [51][52] - A strong emphasis on operational improvements to free up resources for reinvestment [63] Management Comments on Operating Environment and Future Outlook - Management expects continued impact from COVID-19 into the first half of 2021, with uncertainty regarding the timing and extent of recovery [42] - Anticipated substantial underlying growth in 2021 compared to 2020, with established markets expected to recover faster than emerging markets [43] - Management remains optimistic about the pipeline of new technologies and the potential of recent acquisitions [71] Other Important Information - The company proposed to keep the full year dividend unchanged at $0.375 per share, reflecting resilience and a strong balance sheet [9][30] - Net debt increased to $1.9 billion, with a leverage ratio of 1.8 times adjusted EBITDA [40][41] Q&A Session Summary Question: R&D Spend and Clinical Data Needs - Management acknowledged the increasing need for clinical data and confirmed that R&D investment will be higher moving forward, currently at about 6% of sales [76][77] Question: Robotics Adoption - Adoption of the CORI system is expected to grow, with a focus on capturing market share despite entering the market later than competitors [78] Question: RENASYS Market Share - RENASYS previously reached about $100 million in market share, with expectations for further growth due to product quality [79] Question: 2021 Guidance - Management opted for general guidance due to COVID-19 uncertainties, emphasizing confidence in recovery once restrictions are lifted [87][88] Question: Inventory Obsolescence - An increase in inventory obsolescence provision was noted, driven by demand estimates, with no change in accounting policy [92][93] Question: Share Price Performance - Management suggested that external factors, including Brexit, may have contributed to underperformance relative to peers [95][96] Question: Cash and Capital Deployment - The company maintains a strong liquidity position and plans to reinvest in growth and pursue M&A opportunities [109] Question: CapEx Increase - CapEx increased in 2020 primarily due to investments in the Malaysia factory, with expectations for continued higher rates in 2021 [113][114]

Financial Data and Key Metrics Changes - Q3 revenue was $1.2 billion, a decline of 4.2% on an underlying basis and 3.7% on a reported basis [6][12] - The U.S. market returned to growth at 0.9% on an underlying basis, with revenue of $630 million [7][8] - Other Established Markets declined by 6.2% and Emerging Markets by 14.5% [7] Business Line Data and Key Metrics Changes - Orthopedics declined by 2.8% globally, with stronger performance in hips compared to knees [16] - Sports Medicine and ENT declined by 4.5% and Advanced Wound Management (AWM) by 6.1% [16] - Specific growth in Orthopedics was driven by emergency cases and the rollout of the OR3O Dual Mobility Hip System [17] Market Data and Key Metrics Changes - Established Markets showed mixed recovery, with Germany and France returning to growth, while the UK lagged [9][10] - In Asia Pacific, Australia and Japan saw procedure volumes recover to approximately 90% of normal levels [10] - Emerging Markets experienced varied performance, with China recovering strongly while other markets like India and South Africa remained under restrictions [11] Company Strategy and Development Direction - The company remains focused on long-term growth, continuing investments in R&D and M&A despite short-term challenges [14][24] - A conditional agreement to acquire Integra's orthopedics extremities business was announced, viewed as a high-growth category [24][25] - The company is enhancing its mid-term growth profile through product launches and digital technology capabilities [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the healthcare system's preparedness for COVID-19 impacts, although visibility remains limited [12][33] - The expectation is that the impact of COVID will continue into the first half of 2021, with full-year guidance withdrawn due to uncertainty [13] - The company aims to consistently outgrow its markets while improving trading profit margins [33] Other Important Information - The company has maintained its sales force without layoffs during the COVID-19 crisis, ensuring stability [93] - There is a focus on operational efficiency plans, particularly in manufacturing and supply chain [15] Q&A Session Summary Question: Differential between hip and knee growth - Management noted that both market factors and specific company factors contribute to the differential, with hips seeing more emergency cases [36] Question: Integra acquisition and expected returns - The acquisition is seen as a mix of technology and commercial capabilities, with a new shoulder system expected in 2022 [38] Question: Bond issue strategy - The company took advantage of low interest rates to diversify funding sources, moving away from reliance on bank loans [40] Question: Integra acquisition rationale - The acquisition complements the reconstruction business and provides access to the shoulder market, enhancing commercial capabilities [45] Question: U.S. Wound Care market trends - Management expects a good fourth quarter in Advanced Wound Management, driven by improvements in bioactives [47] Question: Wound Care market share and geographic mix - The company has a strong business in Europe, which has been more affected by COVID, but does not believe it has lost market share [51] Question: Margin outlook and foreign exchange impact - Transactional FX impact is expected to be around 50 basis points for both 2020 and 2021 [56] Question: Return to positive organic revenue growth - Management is optimistic about returning to growth that exceeds 2019 levels, depending on the management of COVID impacts [62] Question: Competitive dynamics in negative pressure market - The company believes it is well-positioned with strong products like PICO and is regaining market share in hospitals [68][71]

Smith & Nephew plc (NYSE:SNN) Q2 2020 Earnings Conference Call July 29, 2020 3:30 AM ET Company Participants Roland Diggelmann - CEO Ian Melling - Interim Chief Financial Officer Conference Call Participants Patrick Wood - Bank of America Merrill Lynch Kit Lee - Jefferies International Kyle Rose - Canaccord Genuity Christoph Gretler - Credit Suisse Julien Dormois - Exane BNP Paribas Michael Jungling - Morgan Stanley David Adlington - JPMorgan Chase Veronika Dubajova - Goldman Sachs International Tom Jones - ...

Smith Nephew Second Quarter and First Half 2020 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 margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", "anticipate", "wellplaced", "believe", "estimate", "expect", "target", "consider" and similar expressions are generally intende ...

Smith & Nephew plc (NYSE:SNN) Q4 2019 Earnings Conference Call February 20, 2020 4:00 AM ET | --- | |--------------------------------------------------------------| | | | Company Participants | | Roland Diggelmann - CEO Graham Baker - CFO | | Conference Call Participants | | David Adlington - JPMorgan Michael Jungling - Morgan Stanley | | | | Kyle Rose - Canaccord Veronika Dubajova - Goldman Sachs | | Tom Jones - Berenberg | | Kit Lee - Jefferies | | Ed Ridley - Redburn | | Chris Gretler - Credit Suisse | | ...

Smith Nephew Fourth Quarter and Full Year 2019 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 margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", "anticipate", "wellplaced", "believe", "estimate", "expect", "target", "consider" and similar expressions are generally intended ...

Smith & Nephew PLC (NYSE:SNN) Q3 2019 Earnings Conference Call October 31, 2019 6:00 AM ET Company Participants | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | Graham Baker – Chief Financial Officer Skip Kiil – President-Orthopaedics | | | Conference Call Participants | | | Patrick Wood – Bank of America | | | Kyle Rose – Canaccord Genuity Veronika Dubajova – Goldman Sachs ...

Q3 2019 Financial Performance - Smith+Nephew's Q3 revenue reached $1,246 million, reflecting a +4.0% underlying growth and +6.5% reported growth[6, 11] - Orthopaedics franchise revenue was $524 million, with an underlying growth of +3.4%[7, 15] - Sports Medicine & ENT franchise revenue amounted to $365 million, showing an underlying growth of +6.9%[8, 19] - Advanced Wound Management franchise revenue was $357 million, with an underlying growth of +2.1%[7, 22] Geographical Performance - US revenue reached $624 million, representing a growth of +2.7%[12, 13] - Other Established Markets generated $382 million in revenue, experiencing a decline of -0.3%[12, 13] - Emerging Markets revenue was $240 million, demonstrating a growth of +16.0%[12, 14] Orthopaedics Sub-Franchise Performance - Knees sub-franchise showed a global growth of +4.6%, with US at +1.7% and OUS at +8.6%[15] - Hips sub-franchise grew globally by +2.6%, with US at +2.2% and OUS at +3.1%[15] - Trauma sub-franchise experienced a growth of +2.2%[15] Sports Medicine & ENT Sub-Franchise Performance - Sports Medicine Joint Repair (SMJR) grew by +12.2%[19] - Arthroscopic Enabling Technologies (AET) grew by +0.8%[19] - ENT grew by +5.3%[19] Advanced Wound Management Sub-Franchise Performance - Advanced Wound Care (AWC) declined by -1.8%[22] - Advanced Wound Bioactives (AWB) grew by +2.1%[22] - Advanced Wound Devices (AWD) grew significantly by +15.4%[22] 2019 Guidance - The company projects sales growth with an underlying rate of 3.5% to 4.5% and a reported rate of 3.9% to 4.9%[48] - The trading profit margin is expected to be around 22.8%[48]

Smith & Nephew PLC (NYSE:SNN) Q2 2019 Earnings Conference Call July 31, 2019 3:30 AM ET Company Participants Namal Nawana - CEO Simon Fraser - President, Advanced Wound Management Graham Baker - CFO Conference Call Participants Patrick Wood - Bank of America Merrill Lynch David Adlington - JPMorgan Chase & Co. Kyle Rose - Canaccord Genuity Corp. Nyeok Lee - Jefferies Michael Jungling - Morgan Stanley Veronika Dubajova - Goldman Sachs Group Thomas Jones - Berenberg Julien Dormois - Exane BNP Paribas Namal Na ...

SN © Smith+Nephew 2019 Second Quarter and First Half 2019 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 margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", "anticipate", "wellplaced", "believe", "estimate", "expect", "target", "consider" and similar expressions are general ...