Smith & Nephew (SN) Investor update summary

Strategic growth, vision, and innovation priorities

• Focus on four pillars—reach, innovate, scale, and execute efficiently—to drive 6%-7% organic revenue growth and 9%-13% trading profit growth over the next three years, targeting over $1 billion in free cash flow and 12%-13% ROIC by 2028.

• RISE strategy emphasizes efficient execution, strategic investment, and expanding patient reach to improve margins and returns.

• Robust product pipeline with increased launch cadence from 2026-2028 across orthopaedics, sports medicine, and wound management.

• R&D investment is increasing, especially in sports medicine and wound care, with 44 products launched in the past three years and plans for 14-16 new launches annually through 2026.

• Major scalable technology platforms include MTECH, TESSA, Lumos, and a rapidly evolving robotic platform.

Advanced wound management and innovation

• Broad portfolio targets high-growth segments like pressure injury prevention, chronic wounds, and surgical site complications, with products such as LEAF, ALLEVYN COMPLETE CARE, and ALLEVYN Ag+ Surgical.

• LEAF reduces pressure injury risk by 94%, while ALLEVYN COMPLETE CARE offers superior exudate management and flexibility.

• PICO, a portable single-use negative pressure wound therapy device, reduces surgical site complications by up to 63% and length of stay by 1.75 days.

• Over 200 patents and 310 studies, including 60 RCTs, support PICO's effectiveness; NICE recommends its use.

• Continued investment in PICO aims to expand patient reach and accelerate innovation.

Sports medicine and biologics

• REGENETEN bioinductive implant reduces rotator cuff re-tear rates by 65% at two years and is expanding to extra-articular ligaments.

• CARTIHEAL AGILI-C implant provides twice the pain reduction of microfracture and reduces risk of knee replacement by over 80%, with durable 5-year outcomes.

• TESSA introduces real-time, video-based navigation for arthroscopic surgery, enhancing ACL reconstruction accuracy and expanding future applications.

• Tendon Seam offers stronger, more stable repairs, minimizing gap formation and supporting healing.