Investor presentation March – April 2026 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 id ...

Core Insights - The company reported strong growth across its business units, with a notable 7.9% underlying growth in Orthopedics, marking the strongest quarterly growth in over two years [2] - Management emphasized the importance of CORI deployment, with "Other recon" growing by 40.8% and a significant increase in knee growth in accounts where CORI is established [1] - The company achieved a fourth-quarter revenue of $1.7 billion, reflecting a 6.2% underlying growth and an 8.3% reported growth, aided by foreign exchange [4] Financial Performance - Full-year revenue for 2025 reached $6.2 billion, up 5.3% on an underlying basis and 6.1% reported, with segment growth reported as 5.1% in Orthopedics, 5.2% in Sports Medicine and ENT, and 5.6% in Advanced Wound Management [8] - Adjusted EPS rose by 21% to $1.02, supported by a $500 million buyback completed in the second half of 2025 [10] - Free cash flow increased by 52.5% to $840 million, driven by improved working capital performance and lower restructuring costs [10] Growth Drivers - The U.S. revenue grew by 5.6%, with other established markets rising by 7.2% and emerging markets increasing by 6.4% [3] - Sports Medicine and ENT grew by 7.3% in Q4, with joint repair surpassing $1 billion in annual revenue for the first time [6] - Advanced Wound Management grew by 2.8% in the quarter, with Advanced Wound Devices performing particularly well [7] Strategic Initiatives - The company plans to expand its shoulder portfolio through the acquisition of Integrity Orthopaedics, with total consideration up to $450 million [16] - Management expects around 6% organic revenue growth in 2026, with profit growth anticipated to outpace revenue growth [12] - The company aims for a medium-term organic revenue CAGR of 6% to 7% and trading profit CAGR of 9% to 10% under its RISE strategy [18] Market Outlook - Management anticipates a $60 million impact from tariffs in 2026, up from $17 million in 2025, and a $20 million to $40 million incremental impact from changes to wound reimbursement [13] - Sales in greater China for 2026 are expected to be similar to 2025, with anticipated challenges from AET and ENT VBPs [15] - The company expects first-half revenue growth of approximately 4.5% to 5% and second-half growth of 7.5% to 8% [14]

Financial Data and Key Metrics Changes - The company reported a strong finish to 2025, achieving underlying revenue growth of 5.3% and free cash flow of $840 million, a 52.5% increase year-on-year [1][3] - Trading profit for the full year was $1.2 billion, reflecting a 160 basis points margin expansion to 19.7% [17][20] - Adjusted earnings per share grew by 21% to $1.02, driven by a $500 million share buyback [18][19] Business Line Data and Key Metrics Changes - Orthopedics grew by 5.1%, Sports Medicine and ENT by 5.2%, and Advanced Wound Management by 5.6%, all on an underlying basis [15][16] - The joint repair business surpassed $1 billion in revenue for the first time, driven by products like REGENETEN and Q-FIX [11][12] - Advanced Wound Management grew 2.8% in Q4, with Advanced Wound Care growing 4.4% [13][14] Market Data and Key Metrics Changes - U.S. growth was 5.6%, other established markets 7.2%, and emerging markets 6.4%, with underlying growth excluding China at 7.2% [7][16] - The company expects continued growth in orthopedics, sports medicine, and Advanced Wound Management, particularly in AWC and AWD [27][28] Company Strategy and Development Direction - The company is transitioning to a new RISE strategy aimed at accelerating growth and improving returns, building on the previous 12-Point Plan [4][31] - The acquisition of Integrity Orthopaedics is expected to enhance the sports medicine portfolio and drive growth in biomechanical repair [33][34] - The company plans to increase R&D investment and maintain a robust product launch pipeline, with expectations of launching 16 new products in 2026 [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving around 6% organic revenue growth in 2026, with trading profit growth expected to be around 8% [20][29] - The impact of China VBP on joint repair is expected to be less significant moving forward, with management anticipating a bounce in sports business in China [72][75] - The company aims to maintain a focus on organic growth and capital allocation towards high-value clinical segments [68][69] Other Important Information - The company achieved a 15-fold increase in free cash flow and a 170 basis points increase in ROIC from 6.6% to 8.3% [6][25] - The company expects to face extraordinary headwinds in 2026, including inventory revaluation and changes to reimbursement in the U.S. AWM business [20][21] Q&A Session Summary Question: Can you break down revenue guidance for 2026 and expectations for market growth? - Management indicated that 2026 revenue growth is expected to be around 6%, with contributions from all business units and innovation driving growth [48][49] Question: What is the expected phasing of revenue growth through the quarters? - Management expects Q1 to be softer due to one fewer trading day, with growth in the first half around 4.5%-5% and stronger growth in Q3 and Q4 [53][54] Question: What is the outlook for joint repair in China? - Management confirmed that joint repair growth in China has annualized, and they expect a bounce in sports business while AET and ENT will have a limited negative impact [64][75]

Financial Performance - The company reported a strong finish to 2025, achieving underlying revenue growth of 5.3% and free cash flow of $840 million, a 52.5% increase year-on-year [1][3][15] - Trading profit for the full year was $1.2 billion, reflecting a 160 basis points margin expansion to 19.7% [17][20] - Adjusted earnings per share grew by 21% to $1.02, driven by a $500 million share buyback [18][19] Business Unit Performance - Orthopedics grew 7.9% on an underlying basis, with strong performance in hips and trauma, while U.S. knee growth improved following the launch of LEGION MS [7][8][10] - Sports medicine and ENT grew 7.3%, with joint repair surpassing $1 billion in revenue for the first time, driven by REGENETEN and Q-FIX [11][12] - Advanced Wound Management grew 2.8%, with Advanced Wound Care growing 4.4% [13][15] Market Performance - U.S. growth was 5.6%, with other established markets at 7.2% and emerging markets at 6.4% [7] - Excluding China, underlying growth was 7.2%, indicating strong performance across various regions [16] Company Strategy and Industry Competition - The company is transitioning to a new RISE strategy aimed at accelerating growth and improving returns, building on the previous 12-Point Plan [4][31] - The acquisition of Integrity Orthopaedics is expected to enhance the sports medicine portfolio and drive growth in biomechanical repair [33][35] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving around 6% organic revenue growth for 2026, with trading profit growth expected to be around 8% [20][29] - The impact of China VBP on joint repair is expected to be less significant moving forward, with management anticipating a bounce in sports business in China [72][75] Other Important Information - The company achieved a 15-fold increase in free cash flow and a 170 basis points increase in ROIC to 8.3% [6][25] - The company plans to maintain a dividend ratio of 35%-40% and consider buybacks subject to leverage targets [27] Q&A Session Summary Question: Can you break down revenue guidance for 2026 and expectations for market growth? - Management indicated that 2026 revenue growth is expected to be around 6%, with innovation contributing significantly to this growth [48][49] Question: What is the outlook for joint repair in China? - Management confirmed that joint repair growth in China has annualized, and the impact of VBP will be less significant moving forward [64][75] Question: How does M&A impact bottom line growth? - Management emphasized that M&A, such as the acquisition of Integrity, is aimed at scaling in areas of strength and is expected to be accretive in the long term [68][69]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported underlying revenue growth of 5.3%, with all three business units growing by over 5% [1][15] - Free cash flow increased to $840 million, a 52.5% year-on-year growth, enabling a $500 million share buyback program [3][26] - Trading profit for the full year was $1.2 billion, reflecting a 160 basis points margin expansion to 19.7% [17][20] Business Line Data and Key Metrics Changes - Orthopedics grew 7.9% on an underlying basis, with strong performance in hips and trauma, while U.S. knee growth improved following the launch of LEGION MS [8][9] - Sports medicine and ENT grew 7.3%, driven by double-digit growth in joint repair, surpassing $1 billion in revenue for the first time [12][13] - Advanced Wound Management grew 2.8%, with Advanced Wound Care growing 4.4% [14][15] Market Data and Key Metrics Changes - U.S. growth was 5.6%, other established markets grew 7.2%, and emerging markets grew 6.4% [7] - Excluding China, underlying growth was 7.2%, indicating strong performance in other markets despite challenges in China [16][17] Company Strategy and Development Direction - The company is transitioning to a new RISE strategy aimed at accelerating growth and improving returns, building on the previous 12-Point Plan [4][31] - The acquisition of Integrity Orthopaedics is expected to enhance the sports medicine portfolio and drive growth in biomechanical repair [33][35] - The company aims for more than 20% margin in orthopedics by 2030, supported by initiatives like the Ortho360 operating model [3][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving around 6% organic revenue growth for 2026, with trading profit growth expected to be around 8% [4][28] - The impact of China VBP is expected to be less significant in 2026, with management anticipating a flat performance in greater China sales compared to 2025 [70][73] - The company is focused on innovation, with over 60% of growth in 2025 coming from products launched in the last five years [2][16] Other Important Information - The company achieved a 240 basis points trading margin expansion from 17.3% in 2022 to 19.7% in 2025, despite facing headwinds from VBP in China and inflation [5][19] - The company plans to maintain a dividend ratio of 35%-40% and consider buybacks subject to leverage targets [27] Q&A Session Summary Question: Can you break down revenue guidance for 2026 and the impact of new product launches? - Management indicated that growth will be driven by multiple sources, with innovation contributing significantly, and expects around 6% growth for 2026 [48][49] Question: What is the outlook for joint repair in China? - Management confirmed that joint repair growth in China has annualized, and they expect a balanced portfolio to drive growth without the previous VBP drag [63][74] Question: How does M&A impact bottom line growth? - Management emphasized that M&A, like the acquisition of Integrity, is aimed at scaling in areas of strength and will complement existing products, enhancing overall growth potential [66][68]

Fourth Quarter and Full Year 2025 2 March 2026 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 ...

Company Overview - Smith + Nephew (SNN) has acquired Integrity Orthopaedics, enhancing its Sports Medicine portfolio with the Tendon Seam rotator cuff repair system, aimed at reducing re-tear rates in the shoulder repair market [1][8] - The acquisition is valued at $225 million upfront, with an additional $225 million contingent on performance milestones over five years [7][9] Market Position and Strategy - This acquisition strengthens SNN's leadership in shoulder repair by complementing its existing biological and mechanical solutions, positioning the company as a full-spectrum shoulder solutions provider [2][4] - The rotator cuff repair (RCR) market is significant, with approximately 500,000 procedures performed annually in the U.S., representing an estimated $875 million market opportunity [10] Financial Impact - The deal is expected to be margin accretive by 2028, funded through existing cash facilities, which will maintain leverage below the company's target of 2x EBITDA [9][8] - SNN's current market capitalization stands at $13.89 billion [6] Product Integration and Innovation - The Tendon Seam system is designed to address high structural failure rates associated with traditional techniques, potentially leading to lower re-tear rates and improved patient outcomes [11] - This acquisition complements SNN's existing products, including REGENETEN, Q-FIX, and AETOS, broadening its shoulder portfolio and enhancing cross-selling opportunities [12] Industry Outlook - The global orthopedic trauma devices market is projected to grow from $18.5 billion in 2022 to approximately $38.2 billion by 2030, at a CAGR of about 9.5% [13] - The growth is driven by increasing road accidents and an aging population, boosting demand for advanced trauma care solutions [14] Strategic Initiatives - SNN's RISE strategy aims for faster revenue growth, higher profitability, and improved free cash flow by 2028, with a revised trading profit margin guidance of at least 19.5% and free cash flow of around $800 million for 2025 [15]

Summary of Smith & Nephew Capital Markets Day 2025 Company Overview - **Company**: Smith & Nephew (NYSE: SNN) - **Industry**: Medical Technology - **Event**: Capital Markets Day 2025 - **Date**: December 08, 2025 Key Points and Arguments New Strategy: RISE - Smith & Nephew introduced a new strategy called RISE aimed at achieving 6%-7% organic growth and 9%-10% trading profit growth over the next three years [3][4][21] - The strategy focuses on reaching more patients, innovating to enhance care standards, scaling through strategic investments, and executing efficiently [22] Financial Targets - Expected free cash flow to reach $1 billion by 2028 [4][35] - Return on Invested Capital (ROIC) projected to improve to 12%-13% by 2028 [4][35] - Trading margin expanded from 17.3% in 2022 to at least 19.5% in 2025 [19] Market Position and Growth Potential - Addressable market exceeds $50 billion, growing at approximately 6% [7] - Smith & Nephew is the second-largest player in the global Sports Medicine market valued at $7 billion and the second-largest in the global wound market worth $13 billion [7][9] - The company has a diversified portfolio with over 50% of revenues from the U.S. and nearly a third from developed international markets [9] Product Innovations - Key products include REGENETEN for tendon repair, AGILI-C for cartilage repair, PICO for negative pressure wound therapy, and CORI for robot-assisted orthopedic surgery [25][26] - More than 75 product launches in the last five years, contributing significantly to revenue growth [39] Operational Improvements - Implementation of a 12-Point Plan to address operational inefficiencies, including closing five manufacturing facilities and improving inventory alignment [12][14] - Transition to a simpler business unit structure to enhance accountability and decision-making [15][16] Focus on Cash and Cost Management - Achieved an 8% reduction in central costs and initiated a $200 million savings program [17] - Aiming for gross cost benefits of $325-$375 million, with significant savings expected from manufacturing and procurement [18] Innovation and R&D - Continued investment in R&D, maintaining around 5% of revenue, with plans to increase investment in 2026 [38] - Focus on two key innovation platforms: MTEC (musculoskeletal technologies) and biologics, aimed at enhancing surgical outcomes and patient care [40][42] M&A Strategy - Strategic focus on high-returning, high-growth opportunities, with recent successful acquisitions like CartiHeal [29] - New leadership in corporate strategy to drive M&A efforts aligned with the company's strengths [29] Patient-Centric Approach - Emphasis on improving patient outcomes and experiences through innovative products and technologies [55] - Commitment to addressing unmet needs in healthcare, enhancing the quality of life for patients [56] Additional Important Insights - The company aims to increase patient reach from 15 million to 20 million by 2028 [23] - The sports medicine market is valued at $6.6 billion, with a focus on minimally invasive procedures and rapid recovery [57] - Smith & Nephew has a strong track record of innovation, with many products becoming industry standards [58] This summary encapsulates the key points discussed during the Smith & Nephew Capital Markets Day 2025, highlighting the company's strategic direction, financial targets, market position, product innovations, operational improvements, and commitment to patient care.

Financial Performance & Targets - The company aims for a 12-13% Return on Invested Capital (ROIC) and over $1 billion Free Cash Flow (FCF) by 2028[11] - The company anticipates a 9-10% Trading Profit Compound Annual Growth Rate (CAGR) and 6-7% Organic Revenue CAGR[11] - The company's 12-Point Plan has led to approximately a 300 basis point increase in ROIC, roughly a 14x increase in FCF, and about a 220 basis point increase in Group trading margin[53] Market Position & Strategy (RISE) - The company is well-positioned in attractive markets valued at approximately $50 billion, with a growth rate of 6%[13] - The company's strategy, RISE (Reach more patients, Innovate to enhance the standard of care, Scale through strategic investment, Execute efficiently), aims to elevate the company[57] - The company aims to reach 20 million patients by 2028, an increase of 5 million from the current 15 million[63] Segment Performance & Innovation - In Sports Medicine, the company holds a 25% global market share with a business valued at $1.6 billion in 2024[152] - In Advanced Wound Management, the company holds a 13% global market share in a $13 billion market[14, 255] - The company has launched 78 new products between 2021 and 2025, with over 50% of revenue growth coming from products launched in the last five years[98] Orthopaedics Turnaround - The company is implementing Ortho360 to drive efficiency and profitability in Orthopaedics[83, 383] - The company plans to reduce the number of product families in Orthopaedics to drive greater efficiency[386] - The company is addressing historical overproduction in Orthopaedics, aiming to align supply and demand and improve inventory health[393]

Financial Performance - The company reported underlying revenue growth of 50% in Q3 2025, consistent with H1[8] - Total revenue for Q3 2025 reached $1501 million[13] - The company is raising free cash flow guidance from over $600 million to around $750 million[10, 33] - The company maintains its 2025 trading margin guidance of 190-200%[33] Business Segment Performance - Orthopaedics revenue reached $577 million, with underlying growth of 41%[14, 17] - Sports Medicine & ENT revenue was $469 million, reflecting underlying growth of 51%[14, 21] - Advanced Wound Management (AWM) achieved revenue of $455 million, with underlying growth of 60%[14, 27] Regional Performance - The US market grew by 55% with revenue of $789 million[14] - Emerging Markets grew by 54% with revenue of $265 million[14] - Other Established Markets increased by 39% with revenue of $447 million[14] Key Growth Drivers and Outlook - The company expects ongoing improvement in US Recon through the 12-Point Plan, along with continued strong performance in Sports & ENT (excluding China) and AWM[34] - The company anticipates approximately 150 bps growth headwind from China[34] - Innovation, including products like REGENETEN, CARTIHEAL, and ALLEVYN CC, is expected to drive future growth[35, 39]