Exhibit 99.3
Smith & Nephew
First Choice in Medical Devices
Chris O'Donnell
Chief Executive
2
Smith & Nephew - maintaining momentum
. Well positioned in sustainable markets
. Three main businesses performing strongly
. Orthopaedics
. Endoscopy
. Wound Management
. Accelerating sales & profit growth
. underlying sales growth up to 13%
. ongoing profit growth 19%
. 15% EPS growth before 4% restructuring dilution
. 15% sales team expansion contributing to performance
. Continued investment in new products
3
Trading results
2000 2001
(pound)m (pound)m
Group Sales - ongoing 835 1013 +21%
- divested/discontinued 300 69
----------- -----------
(pound)1135 (pound)1082
----------- -----------
Operating profit - ongoing 144 171 +19%
- divested/discontinued 35 4
----------- -----------
(pound)179 (pound)175
- Joint Venture - 13
Interest (7) (17)
----------- -----------
Profit before taxation (pound)172 (pound)171
----------- -----------
Ordinary taxation (FRS 19 basis) 31% 31%
EPS before exceptionals 11.52p 12.83p +11%
Dividend 4.5p 4.65p
Exceptional gains (net) (pound)93m (pound)23m
4
Sales growth
Underlying Acquisitions Currency Reported
% % % %
Orthopaedics 18 - 3 21
Endoscopy 11 3 3 17
Advanced Wound Management 11 18 - 29
Rehabilitation 6 - 4 10
-- -- -- --
Ongoing 13 6 2 21
== == == ==
5
Smith & Nephew - maintaining momentum
. Market growth increasing particularly orthopaedics and advanced wound
management
. Strong product/technology platform for growth
. Key businesses performing strongly
. Future growth secured by investment in sales forces and new products
. Successful acquisitions strategy to continue
. ORATEC brings technology and market leadership in RF
6
Larry Papasan
President
Smith & Nephew Orthopaedics
7
Highlights of 2001 Performance
. Fastest-growing orthopaedic implant company - third straight year
. Grew sales at nearly twice the rate of an accelerated market
. Gained market share in all core segments
. Revitalized core Trauma business
. Continued margin improvement
[Graphic]
8
2001 Global Orthopaedic Market
Competitor Analysis
S&N Served Markets
[Pie Chart]
Stryker 19%
DePuy 19%
Zimmer 14%
Biomet 11%
Synthes 9%
Smith & Nephew 8%
Sulzer 7%
Other 13%
9
Served Market Growth Compared to
Competition (Excluding Spine)
Overall Market Growth 10%
[Bar Chart]
Sulzer 0.5%
Depuy 11.3%
Stryker 12.5%
Biomet 14.6%
Synthes 15.6%
Zimmer 17.5%
S&N 18%
Full-year adjusted for spine.
10
Growth Market Drivers
. Demographics and aging population
. Quality of life expectations
. New, longer-lasting materials and technologies
. Less-invasive procedures
. Better informed patients
[Graphic]
11
Maintaining momentum
. Drive core hips, knees and trauma
. Develop high-growth segments
. Introduce less-invasive, more efficient procedures
. Pursue transformational technologies (CAS, Oxinium)
. Leverage growth to enhance margins
. Continue operational excellence
[Graphic]
12
2002 Product Rollout Plans
13
Knees
. New Products
. PS Gen II Oxinium
. Macrotextured Profix
Oxinium
. Accuris
unicompartmental
knee system
Market Growth: +12%
S&N 2001 Growth:
+26%
Market Share Gain:
[Graphic]
14
Hips
. New Products
. Synergy HA/Porous
. CPCS
. Continued XLPE
. Reflection Roughcoat
. Image Porous
Market Growth: +8%
S&N 2001 Growth: +20%
Market Share Gain: +1/2%
[Graphic]
15
Trauma
. New Products
. JAX bone graft substitute
. Trigen TAN
. JetX External Fixator
. OrthoGuard AB
Market Growth: + 9%
S&N Sales Growth: +12%
Market Share Gain: +1/2%
[Graphic]
16
Clinical Therapies
. Supartz joint fluid therapy
J-code reimbursement
approval
. New Products:
. Exogen 2000+ non-invasive
ultrasound therapy
. Exogen 3000
. Dedicated clinical sales team
[Graphic]
17
Strong Future Prospects
. Within an accelerating market, Smith & Nephew
continues to expand sales team by 10%+ per year
. Strong product portfolio in core hip, knee and
trauma segments
. Strong performance in high margin clinical therapies
segments such as HA and bone stimulation
. New technology acceptance
18
Ron Sparks
President
Smith & Nephew Endoscopy
19
2001 Review
. 14% sales growth
. Increased arthroscopic repair
business by 30% - new market
leader
. New products contributed 15% of
total sales - twice as much as 2000
. Continued acceptance of TriVex -
$8 million current run-rate
. Double-digit share in arthroscopic
shoulder repair
. Endoscopic sales, excluding
arthroscopy, tripled between
1998-2001
[Graphic]
20
Future Paradigm of Technologies
[Graphic]
Integration - Miniaturization - Repair - Wireless - Radiofrequency
21
Focus 2002
. Improving Endoscopy Market Position
. ORATEC acquisition
. Increased revenue from new techniques
. Digital OR - breaking new ground
. Expanding leadership in resection
. Innovation leadership in repair
22
ORATEC
. RF focus arthroscopic and
spine segments
. Sales of $48 million in 2001
. Products leverage unique
advantage in temperature
control and feedback
. Strong IP
. Innovator in tissue shrinkage
applications
[Pie Chart]
2001 Global Arthroscopy RF Market $122M
Arthrocare 52% $63M
ORATEC 22% $27M
Mitek 25% $30M
Other 2% $2M
[Graphic]
23
Minimally Invasive Spine
. One of the fastest growing specialties in the endoscopic
market
. SpineCATH/TM/IntraDiscal
ElectroThermal Therapy (IDET/TM/)
. Controlled heat to modify tissue in
the disc wall
. Direct spine sales force
. Clinical studies to drive
reimbursement
ORA-50 ElectroThermal Spine Generator
SpineCATH/R/ Catheter
ORAflex/TM/ probe with deflectable tip
[Graphic]
24
Acquisition Synergies
Technology - One of the broadest RF technology
portfolios in the world
Sales - Global endoscopy market
coverage and capabilities
Operations - Industry leading cost, quality
and service
New Techniques - Expanded offering in rapidly
growing procedure segments
[graphic]
25
Technology Synergy
Broader Technology Portfolio
----------------------------
[graphic}
Monopolar
Bipolar
Electromechanical RF
Coagulation
Shrinkage
Ablation
Temperature Control
Generators
Probes &Tips Design
RF Catheters for Spine
Suction
Foot Control
Hand Control
Voice Control
Central Control
Competitive Position
--------------------
. Only company to offer RF cutting,
ablation, shrinkage and mechanical
resection combined in bipolar
format
. Only company providing
temperature control with feedback
. Broad generator knowledge base
. #1 position in minimally invasive
spine procedures
. Complete line of arthroscopic tips
. Able to transfer Catheter capability
to new techniques / specialties
. Opportunity to be 1st to market
with RF Central & Voice Control
26
Contribution of New Products to
Total Revenue
[Bar Chart]
% of total revenue
------------------
2000 8%
2001 15%
2002 20%
Note: New products launched within last three years
27
Digital OR
. An integrated and fully functional operating room suite that will enable
hospitals and surgical centers to maximize performance through innovative
medical technologies
. Centralized and voice control - alliance with Computer Motion
. Information and Image Management Solutions
. Digital Video (DV) and multi-media network applications
. Mounting solutions
. Endoscopic equipment.
[Graphic]
28
Image Management Solutions
Dyonics(R) Vision 635 Digital
OR capture system
. First to market with broadcast quality mpeg2 video and DICOM compatible images
. Key element of electronic patient records
. Launched 4th quarter 2001
. $50 million market by 2004
. Project $2.5 million for 2002
[Graphic]
29
Digital Video Output Camera
Dyonics(R) Vision 325Z DV
Camera System with Digital
Output
. First high-performance endoscopic
camera with digital output for the
global market
. Provides for direct downloading of
endoscopic images to most
computer and network systems
. Launched 2001
. Superior image quality
. Real-time video
output
. Nearly $2 million in sales in 2001.
Projected $4 million in 2002
. PAL version to launch Q1 2002
[graphic]
30
Autoclavable Camera System
Dyonics(R) Vision 337
Autoclavable Camera System
. Designed to be the most reliable
3-chip autoclavable camera in the
market
. Launch Q1 2002
. Target market size >$150 million
. Project $10 million in revenue
by end 2002
[Graphic]
31
ElectroMechanical Resection
Dyonics(R) Series 9000
Resector
. Combines bipolar RF with
traditional blade technology to
provide simultaneous
mechanical resection with
coagulation
. Resects smooth tissue
. Direct connect to standard
electrosurgical generators
. Creates new market - $50 million
by 2005
. Launch Q1, 2002
. Project $2.6 million in sales by end 2002
[Graphic]
32
Innovation Leadership in Repair
TwinFix/TM/ for the Shoulder
. TwinFix/TM/ AB 5.0
. Quick T 5.0
. TwinFix AB - bioabsorbables have
become the preferred choice of
physicians
. Quick T provides world's first knotless
anchoring for the shoulder
. Q2 2002 launch dates for both
. Collective target markets of $50 million
. Project collective $2 million in revenue by
end 2002.
[Graphic]
33
2002 Objectives
. Continue sales growth momentum
. Integrate ORATEC arthroscopy sales - Vulcan(TM)
. Enter minimally invasive spine - IDET(TM)
. Combine R&D skill base Endoscopy/ORATEC
. Global roll-out of ORATEC RF products
. Roll-out Digital OR technology
34
Smith & Nephew
First Choice in Medical Devices