Smith & Nephew : Investor presentation April - June 2021

Investor Presentation April-June 2021

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 forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. For Smith+Nephew, these factors include: risks related to the impact of COVID, such as the depth and longevity of its impact, government actions and other restrictive measures taken in response, material delays and cancellations of elective procedures, reduced procedure capacity at medical facilities, restricted access for sales representatives to medical facilities, or our ability to execute business continuity plans as a result of COVID; economic and financial conditions in the markets we serve, especially those affecting health care providers, payers and customers (including, without limitation, as a result of COVID); price levels for established and innovative medical devices; developments in medical technology; regulatory approvals, reimbursement decisions or other government actions; product defects or recalls or other problems with quality management systems or failure to comply with related regulations; litigation relating to patent or other claims; legal compliance risks and related investigative, remedial or enforcement actions; disruption to our supply chain or operations or those of our suppliers (including, without limitation, as a result of COVID); competition for qualified personnel; strategic actions, including acquisitions and dispositions, our success in performing due diligence, valuing and integrating acquired businesses; disruption that may result from transactions or other changes we make in our business plans or organisation to adapt to market developments; relationships with healthcare professionals; reliance on information technology and cybersecurity; and numerous other matters that affect us or our markets, including those of a political, economic, business, competitive or reputational nature. Please refer to the documents that Smith+Nephew has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Smith+Nephew's most recent annual report on Form 20-F, for a discussion of certain of these factors. Any forward-looking statement is based on information available to Smith+Nephew as of the date of the statement. All written or oral forward-looking statements attributable to Smith+Nephew are qualified by this caution. Smith+Nephew does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in Smith+Nephew's expectations. The terms 'Group' and 'Smith+Nephew' are used for convenience to refer to Smith & Nephew plc and its consolidated subsidiaries, unless the context requires otherwise.

Certain items included in 'trading results', such as trading profit, trading profit margin, tax rate on trading results, trading cash flow, trading profit to cash conversion ratio, EPSA, leverage ratio, and underlying growth are non-IFRS financial measures. The non-IFRS financial measures in this announcement are explained and reconciled to the most directly comparable financial measure prepared in accordance with IFRS in our Fourth Quarter and Full Year 2020

Results announcement dated 18 February 2021, and our First Quarter 2021 trading report dated 29 April 2021.	2

Our history

	1856	1896	1914
	Days after the outbreak of WW1,
	Thomas James Smith	Horatio Nelson Smith	we received an order to provide
1856	opened a chemist shop in Hull,	entered into apartnership	surgical and field dressing	From50
UK and develops a new method	with his uncleforming	supplies to French
Smith+Nephew	for refining cod liver oil	TJ Smith & Nephew	army within 5 months	To1200
established				During WW1, staff grew
	1986			from 50 to 1,200

Key acquisitions of Richards Medical Company in Memphis, specialists in orthopaedic products and DYONICS, an arthroscopy specialists based in Andover

1995

Acquired

Acufex Microsurgical Inc,

making us a market leader in arthroscopic surgical devices

1953

We developed a special low-temperatureplaster for the Everest climbers on the 1953 expedition.

It enabled them to send back their camera films, sealed and airtight!. This same research led to the development of importantindustrial products

1937

We were listed on the London stock exchange

1928

We produced an

experimental bandage

ElastoplastTM

1999	2001
We were listed on the New York Stock	OXINIUM◊, a new material that
Exchange and in 2001 became a constituent	improves performance and increases
member of the UK FTSE-100 index	the service life of total joint
	replacement systems, firstintroduced

2014		2013	2011
Acquired Arthrocare Corp.		JOURNEY◊ II BCS sets a new standard inknee	PICO◊, the first pocket-sized,single-use
to expand our sports		implant performance,designed	system, revolutionizes the negative
medicine portfolio		to empower patients to return	pressure wound therapymarket
	17,500+	to an activelifestyle

Over Today

2019	2020
Expanding in technologies of the	We are proud of what we do	We exist to restore people's bodies and their self-belief
future, investing inOrthopaedics,	and value our 17,500 employees	by using technologies to take the limits off living.
Biologics and Digital Surgery.	who make thispossible	We call this purpose "LifeUnlimited"

◊Trademark of Smith & Nephew, ©2020 Smith & Nephew

100

and growing

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100

Smith+Nephew is a portfolio medical technology business that has been trading for over 160 years, and operates in more than 100 countries

FTSE 100	Shares
A constituent of the UK's	S+N has a progressive
FTSE 100, with ADRs	dividend policy, and has
traded on the New York	paid a dividend every
Stock Exchange	year since 1937

$4.6bn	~18,000
Annual sales in 2020	We have around 18,000
were $4.6 billion	employees globally

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A portfolio medical technology business

ALLEVYN◊ LIFE	Advanced	Advanced
Advanced Foam
Wound Dressings	Wound Care	Wound Devices

Collagenase	Advanced
SANTYL◊ Ointment	Wound
Enzymatic debrider	Bioactives	Knees

	ENT	$4.6bn
	Arthroscopic	Revenues
COBLATION◊	Enabling	(2020)	Hips
Wand	Technologies

REGENETEN◊	Sports Medicine
Bioinductive Implant	Joint Repair	Other Recon	Trauma

PICO◊

Negative Pressure

Wound Therapy

JOURNEY◊ II BCS

Bi-Cruciate

Stabilised

Knee System

OR3O◊

Dual Mobility

EVOS◊ SMALL Plating System

CORI◊

Surgical

System

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