REG - Smith & Nephew Plc - Smith+Nephew outlines ‘Strategy for Growth'

Smith & NephewAnnouncement

16/12/2021 12:00

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RNS Number : 9148V  Smith & Nephew Plc  16 December 2021

 

Smith+Nephew outlines 'Strategy for Growth', provides mid-term guidance and
announces share buyback
16 December 2021

 

Smith+Nephew (LSE:SN, NYSE:SNN), the global medical technology business, will
today present its Strategy for Growth at a virtual Meet the Management event
for institutional investors and analysts.

 

Roland Diggelmann, Chief Executive Officer, said:

"Smith+Nephew is at an inflection point, with a clear ambition and strategy
for growth. We are transforming to a sustainably higher growth company with
innovation at its core, building on our strong portfolio and pipeline of new
technologies, and underpinned by improving productivity and commercial
execution. With financial discipline we will continue to invest in the
business to take advantage of the opportunities we see, while also driving
shareholder returns."

 

Our Strategy for Growth will be driven by innovation, productivity and
commercial execution.

 

Innovation-led

•     Building on our strong product portfolio and pipeline of
disruptive technologies

 

Productivity and Commercial Execution

•     Delivering current manufacturing and supply optimisation
programmes

•     Sustaining recent strong profitable growth in Advanced Wound
Management and Sports Medicine franchises, representing around 60% of the
portfolio

•     Re-establishing momentum and growth in our Orthopaedics franchise

 

Financial performance commitment

•     Targeting consistent 4-6% organic revenue growth by 2024,
structurally ahead of historic levels

•     Rebuilding trading margin, targeting at least 21% by 2024 with
further improvements thereafter

 

Capital Allocation discipline, prioritised as

•     Maintaining higher investment in innovation to drive organic
growth

•     Continue acquiring new technologies and expanding in higher growth
segments that have a strong strategic fit and meet our financial criteria

•     Maintaining progressive dividend policy and investment grade
credit metrics

•     New commitment to return surplus capital to shareholders through a
regular annual share buy-back; expected to be in the range of $250-300 million
in 2022

 

Meet the Management event details

The virtual Meet the Management event for institutional investors and analysts
will be held today from 12:30pm GMT (7:30am EST). The formal presentation will
be streamed live
(https://www.smith-nephew.com/investor-centre/media-releases/meet-the-management/)
with a replay available after the event on our website.

 

Full year results and 2022 financial guidance will be published on 22 February
2022, as previously disclosed.

 

 

Enquiries

 Investors
 Andrew Swift                      +44 (0) 1923 477433
 Smith+Nephew

 Media
 Charles Reynolds                  +44 (0) 1923 477314
 Smith+Nephew

 Susan Gilchrist / Ayesha Bharmal  +44 (0) 20 7404 5959
 Brunswick

 

About Smith+Nephew

Smith+Nephew is a portfolio medical technology business that exists to restore
people's bodies and their self-belief by using technology to take the limits
off living. We call this purpose 'Life Unlimited'. Our 18,000 employees
 deliver this mission every day, making a difference to patients' lives
through the excellence of our product portfolio, and the invention and
application of new technologies across our three global franchises of
Orthopaedics, Advanced Wound Management and Sports Medicine & ENT.

Founded in Hull, UK, in 1856, we now operate in more than 100 countries, and
generated annual sales of $4.6 billion in 2020. Smith+Nephew is a constituent
of the FTSE100 (LSE:SN, NYSE:SNN). The terms 'Group' and 'Smith+Nephew' are
used to refer to Smith & Nephew plc and its consolidated subsidiaries,
unless the context requires otherwise.

For more information about Smith+Nephew, please visit www.smith-nephew.com
(http://www.smith-nephew.com/) and follow us on Twitter
(http://www.twitter.com/smithnephewplc) , LinkedIn
(http://www.linkedin.com/company/smith-%26-nephew) , Instagram
(https://www.instagram.com/smithnephewmeded/) or Facebook
(http://www.facebook.com/smithnephewplc) .

 

 

Forward-looking Statements

 

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",
"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; 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

(.)( ◊ )Trademark of Smith+Nephew. Certain marks registered US Patent and
Trademark Office.

 

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