Regulatory Compliance and Quality Assurance - In 2024, Smith+Nephew reported 10 recalls globally, with 21,822 units impacted, all of which were either removed from the market or corrected per applicable regulations[1830] - All Smith+Nephew direct manufacturing locations participate in the Medical Device Single Audit Program (MDSAP) and are certified to ISO 13485[1831] - Smith+Nephew did not incur any monetary losses due to legal proceedings associated with bribery or corruption in 2024[1831] - Smith+Nephew tracks regulatory changes regarding chemicals in products and actions them as appropriate[1831] - The company reports all data related to product safety as required by the FDA, including fatalities and enforcement actions[1830] - All Tier 1 material suppliers of Smith+Nephew are compliant with ISO 13485, ensuring quality in the supply chain[1831] Financial Performance and Growth - The company reported a significant increase in revenue, achieving $1.5 billion in Q4 2023, representing a 12% year-over-year growth[1832] - Smith+Nephew reported a significant increase in revenue, reaching $1.5 billion for the fiscal year 2023, representing a 10% year-over-year growth[1842] - The company provided an optimistic outlook, projecting a revenue growth of 10-15% for the next fiscal year[1834] - The company anticipates a revenue growth of 8-10% for the upcoming fiscal year, supported by new product launches and market expansion strategies[1842] - The gross profit margin improved to 60%, up from 57% in the previous year, due to operational efficiencies[1834] - Smith+Nephew's gross margin improved to 65%, up from 62% in the previous year, due to operational efficiencies and cost management initiatives[1842] Product Development and Innovation - New product launches contributed to 20% of total revenue, with the introduction of advanced wound care technologies[1835] - The company invested $200 million in research and development, focusing on innovative surgical solutions and technologies[1836] - Smith+Nephew is investing $200 million in research and development for new technologies, focusing on minimally invasive surgical solutions[1842] - Smith+Nephew's strategic emphasis on advanced wound management was noted, with detailed performance metrics provided in the annual report[1841] - Smith+Nephew reported a significant focus on bioinductive collagen implants for rotator cuff repair, with multiple studies indicating positive outcomes over two years[1839] - The company highlighted a 5-year clinical and MRI follow-up demonstrating effective healing rates for partial-thickness rotator cuff tears using a highly porous collagen implant[1839] Market Expansion and Strategic Acquisitions - Market expansion efforts in emerging markets resulted in a 25% increase in sales in those regions[1832] - The company completed a strategic acquisition of a competitor for $300 million, enhancing its product portfolio[1833] - Smith+Nephew completed the acquisition of a small medical device company, enhancing its portfolio in the sports medicine sector[1842] - The company plans to expand its presence in emerging markets, targeting a 20% increase in sales from these regions by 2025[1842] - The company is exploring potential mergers and acquisitions to further strengthen its product portfolio and market presence[1846] User Engagement and Digital Transformation - User data showed a 15% increase in the number of active users, reaching 2 million by the end of the quarter[1833] - The company reported a 5% increase in user data analytics capabilities, improving customer engagement and product performance tracking[1842] - Smith+Nephew reported a 12% increase in user data analytics capabilities, enhancing customer engagement and product performance tracking[1846] - The company plans to enhance its digital capabilities, allocating $50 million towards digital transformation initiatives[1836] Sustainability and Environmental Commitment - Smith+Nephew operates takeback schemes for products where required by law, although the amount of products reused or recycled is not measured[1831] - Sustainability reviews are incorporated in the New Product Development phase to assess environmental and human health considerations[1831] - The company is committed to sustainability, aiming to reduce packaging material by 30% over the next three years[1842] Corporate Governance and Accountability - The company has filed multiple service agreements and letters of appointment for key executives, indicating a focus on leadership stability and governance[4]. - The financial statement recoupment policy has been updated, reflecting the company's commitment to accountability in executive compensation[4]. - The company has engaged Deloitte LLP and KPMG LLP as independent registered public accounting firms, ensuring robust financial oversight[4].

Core Insights - Smith+Nephew's OXINIUM on highly cross-linked polyethylene demonstrates the highest survivorship rate of 94.1% over 20 years for total hip arthroplasty according to the AOANJRR report [1][2] - Multiple registries, including the Italian Registry and Dutch Arthroplasty Register, indicate that OXINIUM/XLPE has a 35% lower risk of revision at 10 years compared to other modular acetabular implants [2] - The unique manufacturing process of OXINIUM transforms the alloy into a ceramicised metal, providing superior performance benefits [2][3] Performance Evidence - The AOANJRR report corroborates findings from other registries, showing that bearing wear has been virtually eliminated as a cause of failure in hip replacements [2] - OXINIUM/XLPE exhibits significantly lower revision rates than metal on XLPE over a 20-year period [2] - The material composition of OXINIUM results in a 30x reduction in pro-inflammatory markers, eliminating the need for CMR substance declarations on labeling [3] Industry Impact - The findings from global registries provide compelling evidence for stakeholders, including payers, hospitals, and surgeons, regarding the reliability of OXINIUM technology [2] - Smith+Nephew's commitment to innovation in orthopedic technology is underscored by the performance of OXINIUM in joint replacement procedures [2][8] - The company aims to enhance patient outcomes through advanced materials and technologies in orthopedic applications [8][9]

Core Insights - Smith+Nephew's OXINIUM on highly cross-linked polyethylene demonstrates the highest survivorship rate of 94.1% over 20 years for total hip arthroplasty [1][2] - Multiple registries, including the AOANJRR, confirm that OXINIUM/XLPE has a 35% lower risk of revision at 10 years compared to other modular acetabular implants [2] - The unique manufacturing process of OXINIUM results in a ceramicised metal that offers superior performance benefits, including durability and wear resistance [3] Group 1: Performance Data - The AOANJRR report indicates that the combination of OXINIUM and highly cross-linked polyethylene leads to significantly lower revision rates than metal on XLPE [2] - Findings from registries worldwide support the performance of OXINIUM for total hip arthroplasty, providing evidence for its differentiated technology [2][3] Group 2: Material Composition - OXINIUM implants contain virtually no nickel, cobalt, or chromium, resulting in a 30x reduction in pro-inflammatory markers [3] - The absence of CMR substances in OXINIUM implants eliminates the need for labeling declarations regarding carcinogenic, mutagenic, or reprotoxic substances [3] Group 3: Industry Context - The advancements in bearing materials have virtually eliminated bearing wear as a cause of failure in hip replacements, a significant improvement over the past two decades [2] - The ongoing research and data from various registries provide valuable guidance for surgeons and patients in selecting reliable implant materials for long-term outcomes [2]

Financial Data and Key Metrics Changes - For the full year 2024, the company reported a revenue of $5.8 billion, representing a 5.3% increase on an underlying basis and a 4.7% increase on a reported basis [62] - The company achieved 60 basis points of margin expansion, with a trading margin of 18.1% for the year, slightly above previous guidance [67][72] - Cash conversion improved to 95%, significantly higher than the 65% achieved in 2023, with free cash flow increasing to $551 million [91][92] Business Line Data and Key Metrics Changes - Orthopedics grew by 4.3% for the year, while Sports Medicine and ENT grew by 6.2%, and Advanced Wound Management (AWM) grew by 5.1% [63] - In Q4, Orthopedics grew at 6%, with a notable 23.9% growth in other recon driven by robotics sales [41][44] - The Advanced Wound Management segment delivered its highest growth quarter of the year at 12.2%, with bioactives growth of 20.3% [56][57] Market Data and Key Metrics Changes - The US market showed strong performance with an 11.9% growth in Q4, while other established markets grew by 8.2% [40] - Emerging markets experienced a 2.3% decline, primarily due to headwinds in China, which negatively impacted both Recon and Sports Medicine Joint Repair [40][64] - The company expects continued challenges in China, forecasting a headwind of around 150 basis points for the full year 2025 [97] Company Strategy and Development Direction - The company is focused on the 12-Point Plan, which aims to improve operational performance and drive higher growth, with expectations for continued margin expansion in 2025 [9][10] - The transition to a global business unit model is intended to enhance accountability and commercial execution [30][80] - The company anticipates significant cost savings from manufacturing optimization and a zero-based budgeting approach, with expected savings between $325 million and $375 million [33][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving around 5% revenue growth in 2025, despite anticipated headwinds from China [9][96] - The company expects a significant step-up in profitability with trading margins projected between 19% and 20% for 2025 [98] - Management highlighted the importance of innovation, with over 60% of revenue growth in 2024 coming from products launched in the last five years [65][22] Other Important Information - The company plans to maintain its dividend at $0.375 per share [71] - A reduction in headcount by approximately 9% is expected to contribute to operational savings [36][77] - The company is committed to investing in organic growth and potential acquisitions while maintaining a leverage ratio around 2x adjusted EBITDA [95] Q&A Session Summary Question: What gives confidence that orthopedics will recover towards the end of Q1? - Management indicated that they expect Q1 to be the low watermark for inventories, with a recovery anticipated thereafter based on committed volumes in the tender business [110][113] Question: Are volumes in sports medicine ticking up as expected? - Management noted that the first half of the year will be impacted by the sports VBP on joint repair, with expectations for improvement in the second half [114] Question: What assurance is there that R&D spending won't be used to manage margins? - Management reassured that R&D spending will increase, emphasizing their commitment to innovation and efficiency in this area [109]

Fourth Quarter and Full Year 2024 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 intended to identify ...

Core Insights - Smith+Nephew has launched a new foot & ankle repair portfolio in Australia and New Zealand featuring proprietary adjustable tensioning technology, which allows surgeons to optimize suture tension after anchor insertion [1][4] - The adjustable tensioning capability enables personalized treatment for patients, potentially improving outcomes by allowing surgeons to tailor the range of motion based on individual activity levels [2][4] - The portfolio includes a best-in-class all suture anchor that ensures consistent deployment and strong fixation, now integrated with needles for open procedures [3] Company Overview - Smith+Nephew is a global medical technology company focused on the repair, regeneration, and replacement of soft and hard tissue, with a mission to restore people's bodies and self-belief [6] - The company operates in over 100 countries and reported annual sales of $5.5 billion in 2023, being a constituent of the FTSE100 [7]

Group 1 - The last six months have been challenging for Smith & Nephew, with a third quarter miss and lowered guidance negatively impacting the stock [1] - The recent performance has raised questions about the company's progress and future outlook [1]

Core Insights - SNN's CORIOGRAPH Pre-Op Planning and Modeling Services enhances precision and personalization in joint replacement surgeries, integrating with the CORI Surgical System to create patient-specific surgical plans [1][12][14] - The company has a market capitalization of $10.88 billion, with a projected revenue of $5.78 billion for fiscal 2024, indicating a growth of 10.9% from fiscal 2023 [3] - SNN's stock has underperformed, losing 9.2% year-to-date compared to the industry's growth of 8.6% and the S&P 500's gain of 23.8% [2] Company Developments - The CORIOGRAPH platform supports both 2D and 3D imaging, allowing for tailored surgical approaches and improved patient outcomes [5][15] - The first procedure using the CORIOGRAPH services for hip replacement was completed by a leading surgeon, indicating practical application and validation of the technology [6] - The CORI Surgical System is designed for efficiency in knee arthroplasty, suitable for outpatient settings, and is supported by the company's Real Intelligence digital solution [7] Industry Positioning - SNN is well-positioned to capture a larger share of the expanding orthopedic market due to its innovative offerings and focus on precision care [8] - The hip replacement implants market is estimated at $4.8 billion in 2023, with a projected CAGR of 2.1% from 2024 to 2030, indicating growth potential for SNN's products [17] - The introduction of the CORIOGRAPH platform is expected to enhance investor confidence and potentially improve stock performance by driving revenue growth through increased adoption of the CORI Surgical System [13]

Latest expansion to the CORI◊ Surgical System portfolio provides a personalized solution for patients and surgeons Smith+Nephew ((LSE:SN, NYSE:SNN), the global medical technology company, today announces its CORIOGRAPH Pre-Op Planning and Modeling Services is now cleared for total hip arthroplasty (THA) by the United States Food and Drug Administration. Exclusively for users of the CORI Surgical System, this innovative planning software allows for use of either X-rays or CT scans for planning and modeling, ...

Core Viewpoint - Smith+Nephew has received 510(k) clearance from the FDA for its AETOS Stemless anatomic total shoulder system, marking a significant advancement in shoulder arthroplasty and addressing the growing demand for such procedures [1][2]. Company Overview - Smith+Nephew is a global medical technology company focused on the repair, regeneration, and replacement of soft and hard tissue, with a mission to restore people's bodies and self-belief through innovative technologies [5][6]. - The company generated annual sales of $5.5 billion in 2023 and operates in over 100 countries [6]. Product Details - The AETOS Stemless is designed to maximize metaphyseal fixation and stability, featuring an inlay collar, cruciate fins, and a porous titanium coating to encourage biological fixation [2]. - The AETOS Shoulder System, which includes the stemless implant, allows for streamlined convertibility from Stemless to Meta Stem, enhancing surgical flexibility [2]. Market Context - Total shoulder arthroplasty is one of the fastest-growing segments in orthopaedics, with an estimated 250,000 procedures expected annually in the US by 2025 [2]. - The AETOS Stemless expands Smith+Nephew's Upper Extremity portfolio, complementing its market-leading Sports Medicine shoulder repair and biologics solutions [2].