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Annu
al Repor
t
F
Y202
2
P
IONEER
S
OF
P
R
O
GR
E
S
S
IMP
R
O
V
ING
O
UR
W
ORL
D
T
HROUGH
SM
A
R
T
ER
ENG
I
N
EERI
N
G
Chai
r
man’s intro
duc
ti
on
5
6
Bo
ar
d bi
ogr
aphi
es
5
8
Nomination &
Gover
nance Commit
tee Repor
t
66
Au
dit & R
isk C
om
mit
tee Repo
r
t
69
Remuneration & People Committee Repor
t
75
Science, Sustainabili
t
y & Excellence Committee Repor
t
89
Dir
ec
to
r
s’ Repo
r
t
9
0
Statement o
f Direc
tor
s’
re
sponsibilitie
s
92
Our P
ur
p
os
e
IFC
F
Y
2
0
2
2 high
li
ght
s
1
Our p
r
io
r
iti
e
s and t
ar
g
et
s
2
Our ke
y glo
ba
l mar
ket
s
2
Our di
v
i
sio
ns
3
OUR
P
URP
O
SE
W
e are pion
eers of progress – improving ou
r
wor
l
d thr
ough smar
ter engine
er
ing.
Smar
ter e
ngi
neering mean
s helpin
g to sol
ve
the toughest p
roblems
, for our cus
tomer
s, our
com
mun
iti
es and ourselves. W
e help t
o creat
e a
safer
, more e
f
f
ici
ent a
nd better-co
nnected world.
W
e are uni
ted by ou
r Purpose. It is what we do,
how we th
ink, and how we will c
ont
inu
e to use
our passio
n for t
echno
logy and eng
ineering t
o
be suc
cessful in the fut
ure.
01
O
ve
r
v
ie
w
IFC
-
4
Chai
r
man’s statem
ent
5
Chief Executi
ve Of
ficer’
s rev
iew
9
- Our b
usi
ne
s
s mo
del
9
- Our s
tr
ateg
y
10
- Rev
ie
w of th
e ye
ar
1
1
Chief F
i
nan
cial O
f
fic
er
’s rev
ie
w
1
5
- Di
v
is
ion
al r
ev
i
ew
1
7
Ke
y per
for
mance i
ndi
ca
tor
s
21
Sus
t
ain
abi
li
t
y a
t Smi
th
s
24
T
ask
Force on Climat
e-rel
ated Financial Disclosures
35
Sta
keho
ld
er
s an
d S
ec
t
ion 172 St
ateme
nt
4
1
Non-Financial Information Statemen
t
4
5
Risk managemen
t
4
6
- Pr
i
nci
pal r
isk
s and u
ncer
t
ainti
es
47
Goi
ng C
on
cer
n a
nd V
i
abil
i
t
y S
tate
ment
5
4
02
Str
ategic Repor
t
5
-55
0
3 G
over
nance
5
6
-9
2
Ind
epe
nd
ent au
dito
r’s rep
or
t
9
3
Co
ns
ol
id
ated pr
imar
y s
tate
ment
s
103
Accounting policies
1
0
8
Note
s to the a
cco
unt
s
1
1
6
Unau
di
ted Gr
o
up f
ina
nci
al r
eco
r
d 2
018-20
2
2
1
6
4
Unau
di
ted U
S dol
l
ar p
r
ima
r
y st
atem
ent
s
1
6
5
Smi
th
s Gr
oup p
lc C
omp
an
y acc
ount
s
1
71
Subsidiar
y under
tak
ings
1
8
0
Shareholder information
1
87
0
4
Financ
ial s
tatement
s
9
3
-1
8
7
CONTENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
P
24
READ MORE
Sustainability at Smiths
SEE MORE
www.smiths.com
SEE MORE
www.smiths.com
READ MORE
Sustainability at Smiths
P
24
GROSS VITALITY
Percentage
of rev
enue
from new product
s F
Y2
02
2
31%
FY2021: 25%
Acceler
ating gro
w
th –
+
3.
8% o
rg
anic re
venu
e gro
w
th, fa
ste
s
t in near
ly a d
ec
ade
–
Or
ga
nic r
e
ven
ue gr
o
w
th ahe
ad of e
xp
ec
t
ati
on
s; +3
.
8
%
1
(H1
: +3.
4%; H2: +
4.
1
%);
fi
v
e co
ns
ec
ut
iv
e qu
ar
ter
s of gr
o
w
th; rep
or
ted gr
o
w
th of +
6.7
%
–
Headl
ine
2
EP
S gro
w
th +
1
7
.8
%
–
High d
ema
nd ac
r
os
s mo
s
t end m
ar
ket
s w
i
th s
tr
on
g or
de
r gr
ow
th of +
1
1
%
3
–
£51
m of re
ven
ue f
r
om ne
w pr
o
duc
t
s l
aunch
ed in F
Y
2
0
2
2
; R&D inv
es
tm
ent in
cr
ea
s
ed +
14
%
–
T
arg
eted M&
A contr
i
bu
ted +
1
.8
% o
f re
po
r
ted gr
ow
th
–
Incr
e
asi
ng r
etu
r
ns to s
har
eh
ol
der
s wi
th pr
op
os
e
d tota
l di
v
id
end of 3
9
.6
p, +5%
Stronger execution –
Sm
iths E
xcellence Sy
stem f
ul
ly embe
dde
d
–
Resi
li
ent op
er
ating m
ar
gin of 16.3
%
w
ith h
ea
dl
ine o
per
ating p
r
of
it
2
o
f
£
417
m
–
Pr
i
ce of
fse
t
tin
g inf
l
ati
on an
d mit
igat
ing ot
he
r supp
ly ch
ain i
mpa
c
t
s
–
Sol
id oper
ating cash conver
sion
4
of 8
0
%; in
ve
s
tme
nt in w
or
k
ing c
ap
it
al a
nd
ca
pe
x to sup
por
t gr
o
w
th and mi
tig
ate sup
ply c
hai
n imp
ac
t
s
–
More focused por
tfolio follow
ing completion of
Smiths Medical sale and
r
ap
id r
etur
n of pro
ce
ed
s w
it
h shar
e b
u
y
ba
ck pr
o
gr
a
mme n
o
w 7
6% compl
ete
–
Smi
th
s E
xcel
le
nce S
y
ste
m no
w f
ull
y emb
ed
de
d, w
i
th hig
h-
imp
ac
t p
ro
je
c
t
s
und
er
w
ay a
nd t
ar
gete
d s
av
i
ngs a
c
tio
ns to d
r
i
ve e
nhan
ce
d ef
f
ic
ien
c
y
Insp
iring and empowering our peo
ple –
an energise
d
and focused tea
m
–
A ref
r
e
she
d le
ad
er
sh
ip tea
m w
ith n
e
w se
nior a
pp
oint
ment
s t
hr
ou
gho
ut th
e ye
ar
–
Intr
od
uce
d Sm
ith
s Le
ad
er
s
hip B
eha
v
io
ur
s to b
uild o
n our s
tr
o
ng c
ultu
re
–
Dr
i
v
in
g an e
ve
n mor
e d
y
n
amic a
nd in
clu
si
v
e cult
ur
e w
it
h gr
eate
r foc
us o
n di
ve
r
si
t
y
–
Co
ntinu
ing to tr
ansl
ate our com
mit
ment to E
S
G l
ea
der
ship into ac
t
ion
Strong ba
l
ance s
heet –
well p
osit
ione
d to execute our g
ro
w
t
h str
ategy
–
£
3
8
0
m r
ed
uc
ti
on in gr
o
ss d
ebt; l
ev
er
age of 0
.3
x n
et de
bt
/he
ad
li
ne E
BI
T
DA
4
–
F
inal b
u
y-
in of t
he T
I Gr
o
up Pen
si
on S
ch
eme
, del
i
ve
r
in
g cer
ta
int
y f
or s
ch
eme
member
s and shareholder
s
GREENHOUSE GAS REDUCTION
GHG redu
c
tion normalised
to reven
ue F
Y2
02
2
(7.2)%
SAFETY
Recordable Incident Rate
F
Y2022
0.54
FY2021: 0.47
DIVERSITY
% of senior
leader
ship
position
s
taken by female
s F
Y2
0
2
2
24%
FY2021: 23%
DIRECT ECONOMIC CONTRIBUTION
T
axes paid + e
mployee co
st
s
+ suppli
er costs F
Y2
0
22
£2.33bn
FY2021: £1.95bn
HEADLINE
2
F
Y2022
F
Y
2
0
21
Reported
Organic
1
Revenue
£2
,56
6m
£2,
4
06m
+
6
.7
%
+3.8%
Operating profit
£
417
m
£37
2m
+12
.
0
%
+1.7
%
Operating profit margin
4
16
.
3
%
15
.
5
%
+80
bps
(30)bps
Basic earnings per share (EPS)
6
9.
8
p
5
9.
3
p
+1
7.
8
%
Operating cash conversion
4
80%
12
9
%
(
49
)
%
ROCE
4,5
14
.
2
%
13
.9
%
+30
bps
STATUTORY
F
Y2022
F
Y
2
0
21
Reported
Revenue
£2
,56
6m
£2,
4
06m
+
6
.7
%
Operating profit
£11
7
m
£326m
(
6
4
.1
)
%
Profit for the year (after tax)
£1
,035m
£28
5m
26
3.2%
Basic EPS
2
6
7.1
p
71.
7p
272.5%
Dividend per share
3
9.
6
p
3
7.
7
p
+5.0
%
The following definitions
are applied
throughout this R
epor
t:
1
Or
g
an
i
c is h
e
ad
l
in
e a
dj
us
t
ed t
o ex
cl
u
de t
he e
f
f
e
c
t
s of f
or
e
ig
n e
xch
a
ng
e
, ac
qu
i
si
t
io
n
s an
d r
e
st
r
u
c
t
ur
i
ng
.
2
He
a
dl
i
ne
: In a
dd
i
ti
o
n to s
t
at
ut
or
y r
ep
o
r
t
i
ng
, t
he G
r
ou
p r
e
po
r
ts o
n a he
a
dl
i
ne b
a
s
is
. D
ef
i
ni
t
io
n
s of h
ea
d
l
in
e me
tr
ic
s
,
an
d in
fo
r
m
at
io
n a
bo
u
t th
e a
dj
us
t
m
en
t
s to s
t
at
u
to
r
y m
e
a
su
r
e
s, a
r
e p
r
ov
i
d
ed i
n n
ote 3 t
o th
e f
in
a
nc
i
al s
t
at
em
en
t
s
.
He
a
dl
i
ne p
e
r
f
or
man
ce i
s o
n a Sm
i
th
s G
r
ou
p b
as
i
s, e
xc
l
ud
in
g t
he r
e
s
ul
t
s of S
m
it
h
s Me
d
ic
a
l
.
3
Or
d
er g
r
o
w
t
h e
xc
lu
de
s t
h
e ef
f
e
c
t
s of f
or
e
i
gn e
xc
ha
n
ge a
nd i
n
cl
ud
e
s J
oh
n Cr
ane
, S
mi
t
hs D
e
te
c
ti
on a
n
d Sm
i
th
s I
nte
r
co
n
ne
c
t
.
4
Al
te
r
n
at
i
v
e Pe
r
for
m
an
c
e Me
a
su
r
e
s (
AP
M
s
) an
d ke
y p
er
fo
r
ma
n
ce i
nd
ic
a
to
r
s a
r
e de
f
in
e
d in n
ot
e 2
9 to t
he f
i
na
n
ci
al s
t
a
te
me
nt
s
.
5
E
xc
lu
d
e
s th
e im
p
ac
t o
f r
e
s
tr
u
c
t
ur
i
n
g ch
ar
g
e
s a
nd s
p
en
d
.
A Y
E
AR OF AC
C
ELER
A
T
I
N
G
GR
O
W
T
H
A
ND S
T
RON
GER
E
X
EC
U
T
I
O
N
F
Y2022 HIGH
LIGHTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
1
REVENUE BY GLOBAL MARKET
General Industrial
42%
Safety & Security
31%
Energy
21%
Aerospace
6%
REVENUE BY DESTINA
TION
Americas
55%
Europe
19%
Asia Pacific
16%
Rest of the World
10%
We hav
e s
et the f
ol
lo
w
ing m
edi
um-
ter
m t
ar
get
s:
Organic revenue growth
4-6%
(+M&A)
EPS growth
7-10%
(+M&A)
ROCE
15-17%
Operating profit margin
18-20%
Operating cash conversion
100%+
Th
e
se t
ar
g
et
s ar
e und
er
p
inn
ed b
y Sm
ith
s op
er
a
tio
nal K
P
I
s
and e
nv
ir
on
ment
al t
ar
g
et
s
, incl
udi
ng a co
mmi
tm
ent to Net
Zer
o for S
c
ope 1 & 2 e
mis
s
ion
s by 2
04
0 and Net Ze
r
o for
Sc
op
e 3 emi
s
sio
ns b
y 2
0
5
0.
Smit
hs is int
r
insicall
y strong with wor
ld-
cl
as
s e
nginee
r
ing,
lea
ding p
ositio
ns in
cr
itic
al
mar
kets
, an
d dis
tinc
tive
glob
al c
ap
abili
ties
, al
l
underpin
ned by a strong financi
al fr
amework.
Our priorit
y is t
o build o
n our strengths t
o unloc
k
value by moving with great
er pace and u
rgenc
y
to de
li
ver per
formance in li
ne with our sig
nificant
potential.
Our focused plan, which is captu
red in the
Smit
hs Valu
e Engine
, has three t
op prior
ities
:
Safet
y & S
ecur
it
y
Our t
hr
ea
t de
tec
tion e
qui
pm
en
t hel
ps ke
ep p
eo
pl
e
an
d as
s
et
s s
a
fe. D
em
an
d in t
he s
ec
ur
i
t
y m
ar
ket
is driven by persis
tent and evol
ving terror threat
s,
changing securit
y regul
ations, and increased
global air travel and trad
e
Gener
al Industr
ial
Cu
st
ome
r
s pu
t th
eir t
r
us
t in o
ur p
ro
du
c
t
s a
nd
se
r
vic
es t
o sup
p
or
t a wi
de r
a
ng
e of g
en
er
a
l
industr
ial applic
ations in sector
s including
petrochemical
, mining, pulp & paper
, water
treatment, semiconduc
tor testing, heating
elements
, automotive and rail transpor
tation
Aer
ospace
Satellite launches and emerging acti
vities like
deep space exploration are driv
ing demand
for high-reliabilit
y solutions in
the space
market. Grow
th in
aerospace is coming
from
the development of
new fuel-eff
icient aircraf
t
and increasing passen
ger and freight traffic
Energ
y
John Crane’
s
mechanical seal
s and sys
tems
suppor
t energ
y operations wor
ldw
ide including
do
wn
s
tr
ea
m an
d mi
ds
tr
ea
m oil & g
a
s an
d po
we
r
gen
er
atio
n. G
ro
w
t
h is d
r
i
ven b
y in
cr
ea
se
s i
n gl
ob
al
demand for energy,
produc
tiv
it
y,
and enhanced
environmental and safet
y requirement
s
Acceler
ating gro
w
th
Streng
thening
executio
n
Doing eve
n more to ins
pire
and em
power our people
READ MORE
KPIs
READ MORE
Our business model
and Our strategy
P
9
P
21
O
U
R K
E
Y G
L
O
BAL
MAR
KE
TS
OUR P
RIORI
T
IE
S
AN
D
T
AR
G
E
T
S
READ MORE
Sustainability at Smiths
P
24
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OVE
RVIEW
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ST
RATEGIC REPORT
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I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
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CIAL
ST
A
TEM
ENTS
2
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John Cr
ane
Mission-
cr
itical flow control
solutions for increased
eff
icienc
y
, reliabilit
y,
and
environme
ntal sust
ainabilit
y.
Smith
s Dete
c
tion
Detection and screening
tech
nolo
gie
s f
or s
afe
t
y, secu
r
it
y
and freedom of movement.
John C
r
ane i
s a glo
bal l
ea
der i
n the de
si
gn,
manufac
ture, instal
lation and suppor
t of
rotating
equipment solutions that drive ef
ficienc
y, safet
y
,
and environme
ntal sust
ainabilit
y in l
arge
-s
cale
industrial proc
ess
es.
Customer
s
–
En
er
g
y – do
w
n
- an
d mid
-s
t
re
am a
c
ti
v
i
ti
es (
e.g
. pi
pe
li
ne
s an
d
refiner
ie
s) of energy multinational
s and power gener
ation
–
Other pr
oces
s industr
ies – a significant pre
sence in chemical,
li
fe s
ci
enc
e
s, m
ini
ng
, w
ater t
r
eat
me
nt, a
nd p
ul
p & pa
pe
r
–
A
f
ter
mar
ket – in
cr
e
as
ing d
em
an
d for f
ul
l l
if
ec
ycle
asset management
–
Ideally positioned t
o help customers meet
their
decar
bo
nisation and energ
y tr
ansition objec
tiv
es
Comp
etiti
ve
str
eng
ths
–
Strong and dif
ferentiated propr
ietar
y technologies and
exper
tise acros
s industr
ies
–
L
ar
g
es
t i
ns
t
al
le
d ba
s
e in th
e En
er
g
y an
d In
du
st
r
ia
l
s m
ar
ket
s
–
Innov
ation focus
ed, gr
ow
ing digit
al capab
ilit
y
–
Customer intimacy and str
ategic alignment with end user
s
thr
o
ugh a n
et
wor
k o
f ~
2
0
0 s
er
v
ic
e an
d sup
po
r
t cent
re
s
, an
d
unique capabili
ties of field ser
vice engineer
s
Gro
w
th dr
i
ver
s
–
Near-term global demand
for stable energy supply
–
Se
c
ul
ar g
r
ow
th in e
ner
g
y a
nd p
r
im
ar
y r
es
o
ur
ce de
ma
nd
,
especial
ly in emerging markets
–
Increasing demand for enhanced ef
ficienc
y
–
Energ
y tr
ansition – envir
onmental safeguar
ding and cleaner
proce
ss
es
. Requirement t
o reduce emissi
ons, w
ith par
tic
ular
emp
ha
si
s on me
tha
ne
. Gr
o
w
th of a mo
re d
i
ve
r
si
f
ie
d an
d
cleaner low-car
bon energy eco-s
y
stem, includi
ng hydrogen
and r
e
ne
w
ab
le
s
, w
hic
h dr
i
v
e m
or
e de
man
di
ng n
ee
ds i
n
compre
ssion
, pumping and filtration
–
Long-ter
m customer par
tn
erships and out
sour
cing
Competitor
s
Co
mp
eti
tor
s i
nc
lud
e F
lo
w
s
er
v
e, E
ag
leB
ur
gm
ann a
nd A
ES
Smith
s De
tec
ti
on is a g
lob
al le
ad
er in
threat detection and screening technologie
s
that p
rote
c
t p
eop
le an
d as
s
et
s.
Customer
s
–
Av
iat
io
n – air
p
or
t
s an
d go
v
er
nm
ent
s
. Re
gu
l
ator
s are al
so
highly involved and shape mar
ket development
–
O
the
r S
ec
ur
i
t
y Sys
te
ms – a s
ign
if
ic
a
nt pr
e
s
enc
e in hi
gh
-
ene
r
g
y c
ar
go i
ns
pe
c
ti
on s
y
s
tem
s (
p
or
t
s and b
o
rd
er
s),
inte
gr
ate
d s
cr
e
eni
ng s
y
s
tem
s fo
r a br
o
ad r
ange o
f ur
b
an
situations (
cour
t houses
, prisons
, offices
, shopping ma
ll
s, r
ail
stations
, etc.), long-stan
ding par
tner
ships w
ith gover
nments
for det
ection of chemical
s and explosives in national
defence
Comp
etiti
ve
str
eng
ths
–
Glo
b
al r
ea
ch a
nd m
ar
ket-l
ea
din
g br
and
–
Dif
ferentiated propr
ietar
y technologies lever
a
ged acros
s a
br
o
ad r
ange o
f mar
ke
t
s
–
Signific
ant res
ear
ch and development and digital c
apabil
ities
–
Fo
cu
s on mi
nim
isi
ng p
ro
du
c
t en
er
g
y u
se
–
Customer intimacy and loy
alt
y through equipment c
ycle and
af
ter
mar
ket of
fer
–
Op
er
a
tin
g in r
e
gul
at
ed m
ar
ket s
e
gme
nt
s th
at r
eq
uir
e
produc
t cer
tif
ication
–
Net
wor
k of
~
1
00 loc
ations
Gro
w
th dr
i
ver
s
–
Per
sis
tent an
d e
vo
lv
in
g th
r
eat
s to n
ati
on
al s
ec
ur
i
t
y
, pub
l
ic
s
afet
y and c
r
it
ic
al i
nfr
as
tr
u
c
tur
e
–
Cha
ngi
ng a
v
iat
io
n se
cu
r
it
y re
gu
l
ati
on
s and c
us
to
me
r
requir
ements acros
s our industr
ies
–
Grow
ing populations and urbanisation
–
Grow
th of
global tr
anspor
tation infr
astr
uc
ture
–
Glo
b
al gr
o
w
th of inter
natio
na
l tr
ade an
d e
-c
om
mer
c
e
–
Need for integr
ated digital sol
utions
–
Staf
f
ing cons
tr
aints ar
e dri
v
ing demand for digit
al image
ana
ly
si
s so
f
t
wa
r
e su
ch as a
uto
mat
ed th
r
eat r
e
co
gni
ti
on
–
Equipment replacement c
ycle, t
y
pical
ly 8–
10
year
s
Competitor
s
Co
mp
eti
tor
s i
nc
lud
e Ra
pi
sc
a
n, L
ei
do
s, N
uc
te
ch
, F
l
ir
, Chem
r
in
g
an
d Br
u
ker
% OF REVENUE
35%
69% of
John Crane revenue
is from aftermarket sales
% OF REVENUE
26%
5
4% of Sm
it
hs D
et
ec
t
io
n re
ve
nu
e
is from aftermarket sales
OUR
DI
V
I
SION
S
Our fo
ur divisions o
per
at
e in more t
han 50 cou
ntries.
T
oget
her
, our d
iv
isions a
nd Group e
mploy m
ore tha
n 1
4,
7
0
0 people
.
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
3
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% OF REVENUE
14%
READ MORE
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P
19
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CFO review
P
20
% OF REVENUE
25%
F
l
e
x
-Te
k
Safe and ef
ficient
movement of fluids
and g
as
es
.
Smith
s Interconne
c
t
Adv
ancing the world
through
cutting-
edge
conne
c
ti
vi
t
y.
Fle
x-
T
ek is a glo
bal p
rov
i
der o
f high
-
per
for
m
ance
engineered solutions that suppor
t the safe and
eff
icient movement of fluids and gases in a range of
industr
y sectors.
Customer
s
–
Constr
uc
tion – heati
ng, ventilation and ai
r-
conditioning
(H
V
A
C) cu
s
tom
er
s a
nd b
uil
de
r
s (f
ul
l r
a
ng
e of he
at
ing
ele
me
nt
s
, gas p
ip
ing
, f
le
xib
le a
nd m
et
al du
c
tin
g
)
–
Aero
space – aircr
af
t manufac
turer
s and their tier-one
sup
pl
ie
r
s (
a fu
ll r
ang
e of r
ig
id an
d f
le
xib
le
, hig
h-
an
d lo
w-
pr
e
s
sur
e t
ubi
ng an
d du
c
tin
g fo
r fl
uid c
on
ve
y
an
ce
)
–
Industr
ial – Electr
ic
al Proce
ss Heating (highly engineer
ed,
medium-high voltage) a
nd specialist end-use applications
suc
h as m
ed
ic
al h
os
e
s
Comp
etiti
ve
str
eng
ths
–
Le
ad
ing c
a
pa
bil
i
t
y i
n de
si
gn
, man
uf
a
c
tur
e a
nd
cost engine
er
ing
–
High-per
formance dif
ferentiated produc
t
s
–
Innov
ation focused
–
Strong cus
tomer relationships and br
and reput
ation
Gro
w
th dr
i
ver
s
–
T
hr
ou
gh
-c
ycl
e gr
o
w
t
h of th
e U
S ho
usi
ng c
on
st
r
uc
t
io
n mar
ket
–
E
xpanding inte
r
national market
for construc
tion produc
ts
–
Lo
ng
-ter
m incr
e
as
e in co
mm
er
ci
al an
d mil
i
ta
r
y
aircr
aft pro
duction
–
Customer focus on eff
icient per
for
mance and
env
ironme
ntal safegu
arding
–
Industr
ial heat solutions
–
Gr
o
w
t
h in u
se of m
e
dic
a
l de
v
ice
s
Competitor
s
Competitors include Parker-Hannifin, Eaton, OmegaFlex
,
War
r
e
n, W
atl
ow a
nd S
o
ut
hw
a
r
k Met
a
l
Smiths Interconnect is a preferred supplier of
adv
anced electr
onic components
, sub-s
ys
tems,
optical and r
adio frequenc
y produc
t
s for customers
requir
ing reliable, high-
speed and s
ecure
connecti
vit
y, often in harsh environment
s.
Customer
s
–
Se
mi
con
du
c
tor te
s
t – te
st s
o
cket a
nd p
ro
be c
a
r
d so
lu
ti
on
s
for higher-p
er
forming appl
icati
ons (gr
aphic
s pro
ces
sing
,
ar
tif
icial intelligence and data communication) for a
bro
ad
r
an
ge o
f chi
p man
uf
a
c
tur
e
r
s
–
Connec
tor
s – high-reliabili
t
y electr
ic
al interconnect
so
lu
tio
ns f
or sp
e
cia
l
is
ed a
pp
li
c
ati
on
s acr
o
s
s a br
o
ad r
ange o
f
healthcar
e, industr
ial
, transp
or
t and aero
space customer
s
–
F
ibr
e
-
opt
ic
s a
nd r
adio f
r
e
que
nc
y (RF
) com
po
ne
nt
s –
br
o
ad r
ange o
f de
v
ice
s
, tr
ans
ce
i
ve
r
s fo
r dem
an
din
g
high-rel
iabilit
y environments – espe
cially with space and
aerosp
ace customer
s
–
Smiths Interconnect Inc. – antenna sys
tems, multi-func
tion
RF s
y
s
tem
s
, as w
el
l as t
im
e and f
r
e
que
nc
y sol
uti
on
s fo
r
aerosp
ace and defence
cus
tomers
Comp
etiti
ve
str
eng
ths
–
Br
oa
d p
or
t
fol
i
o of cu
t
ti
ng
-
ed
ge te
ch
no
lo
gie
s an
d pr
o
du
c
t
s
–
Strong re
sear
ch and engineering c
apabilitie
s
–
Customer in
timacy and product customisation
–
Global reach and suppor
t
Gro
w
th dr
i
ver
s
–
Inc
re
a
se
d de
ma
nd fo
r f
as
ter d
at
a tr
ansm
is
si
on
, gr
e
ater
ba
nd
w
i
dt
h and f
a
s
ter p
ro
ce
s
si
ng p
o
we
r in ae
r
osp
a
ce,
defence and communications
–
Gr
o
w
t
h of co
nn
ec
t
i
v
it
y, as the w
or
l
d b
ec
ome
s m
or
e
con
ne
c
ted
, dr
i
v
en b
y tr
e
nd
s inc
lu
din
g th
e Inter
net of T
hin
gs
,
Big D
at
a, I
nter
n
et of S
pa
ce, I
nd
us
tr
y 4
.0
–
Develop
ment of
healthc
are technolog
y
Competitor
s
Competitors include Amphenol, TE Connecti
vit
y, Molex,
Co
bh
am
, Gle
na
ir
, Hon
ey
w
el
l
, A
na
re
n, L
e
en
o and W
inw
a
y
READ MORE
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01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
4
O
ver the years, I have tried to mak
e my
Chairman
’
s let
ters interesting and rele
v
ant to
topical events and descr
ibe how we address them
at Smiths. Las
t year
, I des
cribed w
hy we believed
that, by the summer of 2
02
2, the coronav
iru
s
’
s
mutations would b
ecome les
s v
irulent
, and
COV
ID-
1
9’
s
impac
t on so
ciet
y and bus
ines
s
would gradually decline and disappear into the
background of other infectious dis
eas
es we li
ve
with in perp
etuity
, like c
olds or influenza.
Th
e bi
g is
su
es t
hat h
av
e unfol
de
d for S
mi
th
s and ot
her c
omp
ani
e
s
in 2
0
2
2 ar
e:
–
Supply chain
shor
t
ages;
–
Inflation; and
–
T
h
e ef
f
ec
t
s of t
he Uk
r
ai
ne w
ar
, par
ti
cul
a
r
ly i
t
s imp
ac
t
s
on fo
od an
d en
er
g
y sup
pl
y.
Th
is s
et of top
ic
s i
s incr
e
dib
ly co
mpl
ex an
d con
ne
c
t
s the f
is
c
al a
nd
mon
et
ar
y po
li
cie
s of th
e w
or
l
d’s gov
er
nm
ent
s
, ec
on
omic g
r
ow
th
expec
tations, ener
gy shor
tages, so
cial dislocation, food shor
tage
s,
per
son
al s
afet
y
, l
ab
our s
hor
t
age
s
, gl
ob
al mi
gr
at
ion p
at
te
r
ns an
d
so
cie
tal p
r
es
s
ur
es
. T
hi
s is ob
v
io
us
ly not s
om
ethi
ng I c
an c
ov
er in
a sho
r
t let
ter
. So, I w
il
l tr
y to de
al w
i
th ju
st o
ne o
r t
w
o co
nfu
sin
g
pie
ce
s of thi
s pu
z
zle
. S
o, sup
pl
y cha
in sho
r
tag
e
s and r
el
ated
infl
ation w
il
l be m
y fo
cus f
or th
is ye
ar
’s let
ter
.
In any c
omm
od
it
y situ
atio
n, o
nly t
hr
ee f
ac
to
r
s im
pa
c
t a
comm
od
it
y’s pri
ce at an
y tim
e: sup
ply, dem
and
, and i
nv
entor
y.
Pr
ice fluctuations occur continuously
in globally traded
comm
od
it
ie
s like c
opp
er an
d alu
mini
um, a
nd on a
ny da
y th
er
e
ca
n be s
igni
f
ic
ant di
f
fe
r
enc
es in s
pot a
nd f
ut
ur
e pr
i
cin
g, d
epe
ndi
ng
on ex
pe
c
ted f
u
tur
e de
man
d. O
il pr
ices a
re e
sp
ec
ial
ly s
en
sit
i
ve
to an imb
al
a
nce in s
upp
ly an
d dem
an
d be
c
aus
e mo
s
t cont
r
ac
t
s
ne
ver r
e
su
lt in th
e ac
t
ual d
el
i
ver
y of o
il
, on
ly in sp
ec
ul
at
ion
.
But p
r
ic
ing v
a
r
iati
on
s like t
he
se a
pp
ear e
v
er
y
w
her
e, e
ve
n in
non-commodity items.
Th
e w
ar in U
kr
aine ha
s c
aus
e
d ene
r
g
y and f
oo
d inf
l
atio
n to
wo
r
s
en bot
h lo
c
all
y and g
lob
al
ly. But in t
he lo
ng
er ter
m
, en
er
g
y
is a zer
o
-s
um ga
me. S
up
pos
e R
us
sia s
el
l
s m
or
e en
er
g
y to
count
r
ie
s su
ch a
s Indi
a or Chi
na
. In that c
a
s
e, as
s
umin
g the
y s
ell
a fu
ll al
lot
ment
, th
os
e vo
lum
e dem
and
s ar
e mi
ss
ing f
r
om t
he
wo
r
ld m
ar
ketp
l
ace a
nd
, gi
ve
n tim
e, tha
t vo
lume w
i
ll b
e av
ai
l
abl
e
to others.
Th
er
e w
il
l be s
om
e temp
or
ar
y spike
s in oil p
r
ice
s
, bu
t th
ey sh
ou
ld
not l
a
st b
ec
a
us
e the
r
e is a w
ell-
de
v
elo
pe
d ship
pin
g net
wo
r
k for
oil supply
wor
ldw
ide and rebalancing regional supply and
demand
is po
s
sib
le. T
h
er
e ma
y be in
cr
em
ent
al co
st
s due to the d
if
f
er
enc
e
bet
wee
n oil s
hipp
e
d v
ia oc
ean c
a
r
go v
er
su
s th
at tr
a
nsp
or
ted b
y
pip
el
ine, b
ut i
t is un
li
kely to l
a
st
. Nat
ur
a
l ga
s is mo
r
e pr
ob
lem
atic
be
c
aus
e pip
el
in
e inf
r
as
t
r
uc
t
ur
e fr
om R
us
si
a is mo
r
e we
ll-
de
vel
op
ed t
han L
N
G ship
pe
d by s
e
a. S
y
nga
s c
an al
so be m
ad
e
fr
om c
oa
l and
, alo
ng w
i
th f
r
a
cki
ng
, the
s
e mig
ht of
fe
r a so
lu
tio
n
if th
e ga
s supp
ly d
oe
s not r
e
su
me f
ro
m Ru
ss
ia. N
ucl
ea
r po
we
r
gen
er
at
io
n is al
so po
s
sibl
e in co
untr
i
es w
h
er
e nu
cle
ar un
it
s ha
ve
be
en mot
hb
al
led f
or p
ol
iti
c
al or e
nv
ir
on
ment
al r
e
as
on
s. B
ut th
e
se
is
su
es a
re a
s co
nne
c
ted to p
ol
it
ic
al d
eci
sio
ns a
s to ec
ono
mic o
r
technological ones.
Dur
i
ng an
y ec
ono
mic o
r se
cu
l
ar di
st
ur
b
anc
e, exe
cu
ti
v
es f
a
ce
t
w
o pr
i
mar
y c
hal
len
ge
s
. T
he f
ir
s
t is to p
r
edi
c
t ho
w lo
ng a
dis
tu
r
ba
nce w
il
l l
a
st
, an
d the s
e
con
d is to pr
e
dic
t h
ow d
ee
p it
w
ill g
et. We s
a
w thi
s in th
e 9/1
1 at
t
a
ck
s
, the ‘
0
8
-’0
9 deb
t cr
is
is
,
and a
gai
n in the C
O
V
ID
-
1
9 pan
de
mic
, plu
s r
ece
nt sup
ply c
hai
n
sho
r
tag
es a
nd inf
l
at
ion
. W
i
tho
ut a s
en
sib
le fo
re
c
as
ti
ng mo
de
l
,
we d
on’t kno
w w
het
her w
e ar
e f
al
li
ng into a 1m deep di
tch or o
f
f a
1
,000m
c
li
ff
.
W
hen w
e sp
ea
k abo
ut a ‘sup
ply c
hai
n’
, w
e r
efer to t
he f
lo
w of
inb
oun
d mater
ial
s to a co
mp
any a
nd it
s c
on
ver
sion into f
in
ish
ed
goo
ds v
i
a a man
uf
ac
t
ur
in
g pr
o
ce
ss
. T
h
er
e is a co
mpl
eme
nta
r
y
outbound flow from the co
mpany through various distribution
cha
nne
l
s unti
l the p
r
odu
c
t ev
ent
ual
ly r
ea
ch
es t
he f
ina
l cus
to
mer
.
Ev
er
y man
uf
ac
t
ur
in
g com
pa
ny h
as th
es
e b
uild
ing b
lo
ck
s
, the
inb
oun
d fl
ow o
f r
a
w mater
i
al
, co
nv
er
si
on v
ia a m
anu
f
ac
t
ur
in
g
or as
s
em
bly p
ro
ce
s
s
, and t
hen o
ut
bo
und d
el
i
ver
y of f
in
ish
ed
goo
ds to t
hei
r cus
tom
er
s
.
Unders
tanding supply
chains is a
problem in dynamic
s, not
in s
tat
ic
s
. Jus
t l
ike th
e v
ibr
ating s
tr
i
ng of a v
i
ol
in, w
h
en i
t is
fi
gur
ativ
el
y ‘
p
luc
ked
’
, eve
r
y
t
hin
g in th
e supp
ly ch
ain i
s mo
v
ing u
p,
do
w
n, b
ac
k
w
ar
d
s, a
nd fo
r
w
ar
ds
. Pe
r
hap
s th
e clo
se
s
t an
alo
g
y
to supp
ly ch
ain d
y
n
ami
c
s is th
e pul
sat
ing n
ois
e w
e he
ar w
he
n
our p
lumb
ing at h
om
e ex
per
ience
s a ‘w
a
ter ham
mer
’
. T
his i
s
ca
us
ed b
y pr
e
s
sur
e w
a
ve
s os
c
ill
at
ing b
ac
k
w
a
rd
s an
d for
w
ar
d
bet
wee
n dis
co
ntin
uit
ie
s in th
e plum
bin
g s
y
ste
m and i
s ana
lo
gou
s
to the w
a
ve
s of d
ema
nd th
at r
ip
ple u
p and d
ow
n d
y
n
ami
ca
ll
y in
a supply
chain.
On th
e ou
tbo
un
d sid
e of thi
s pr
oc
es
s
, co
mp
ani
es s
el
l th
eir
pr
od
uc
t
s to cu
s
tome
r
s thr
o
ugh v
a
r
io
us fo
r
ms of d
is
tr
ib
ut
ion
.
So
me g
o dir
ec
t
ly to cu
s
tome
r
s to be b
uil
t into pr
od
uc
t pl
atfo
r
ms
such as vehicles or electronic
s, some through distr
ibution
cha
nne
l
s th
at ho
ld bu
f
f
er in
ve
ntor
y to smo
oth o
ut s
upp
ly an
d
dem
and i
mb
al
an
ce
s, a
nd oth
er
s s
el
l th
eir pr
o
duc
t
s dire
c
t
to con
sum
er
s o
nl
ine
. T
he d
y
na
mic
s a
re d
if
fere
nt in det
ail
, b
ut
the
y al
l suf
fer v
ar
y
in
g de
gr
ee
s of tr
ansi
ent pr
o
ble
ms
.
C
HAI
R
MAN
’
S
S
TAT
E
M
E
N
T
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
5
What happe
ns to o
rder
s when
end-m
ar
ket demand f
all
s
?
Let
’s per
for
m a tho
ught e
xp
er
i
ment o
n our s
upp
ly ch
ain
.
Let
’s consid
er a m
ake-to
-
sto
ck o
r
igi
nal e
qui
pme
nt man
uf
ac
t
ur
er
(OE
M) a
nd im
agi
ne th
er
e ar
e thr
e
e or fo
ur in
vento
r
y sto
r
a
ge
loc
at
ion
s in th
e ou
tb
oun
d sup
ply c
hain
. L
et’s imagi
ne a r
ed
uc
ti
on
in en
d-m
ar
ket d
ema
nd b
y 100
bp
s and e
xa
min
e wh
at ha
pp
ens i
n
our supply chain
.
Th
e ma
nag
em
ent at th
e inv
entor
y s
tor
age l
oc
ati
on cl
os
e
st
to the e
nd-
ma
r
ket se
e
s dem
and f
a
ll b
y 100 b
as
is p
oint
s
.
Lo
c
al ma
nag
em
ent kn
o
w
s the
y mus
t c
ut o
r
der
s; ot
her
w
i
se
,
the
y w
il
l hav
e to
o much i
nv
entor
y. So
, to be c
ons
er
v
at
i
ve, t
he
y
cut t
hei
r or
de
r
s b
y 2
0
0 b
asi
s po
int
s
, s
ay. Th
e ma
nag
em
ent at
the n
ex
t l
oc
at
ion f
ur
the
r up th
e sup
ply c
hain s
e
es t
hei
r dem
and
fa
ll b
y 2
0
0 b
as
is p
oint
s
, an
d the
y al
so w
or
r
y th
ey w
il
l ha
ve to
o
much i
nv
entor
y, so th
ey c
ut o
r
der
s by 3
0
0 b
asi
s po
int
s
, and s
o o
n.
Th
e or
d
er r
ed
uc
ti
on num
ber
s chos
en h
er
e ar
e ju
st i
llu
s
tr
at
i
ve,
and t
he ac
t
ual n
umb
er
s w
il
l di
f
fe
r dep
en
din
g on a co
mp
any
’s
r
isk to
ler
ance, d
is
tr
ib
ut
ion m
eth
od an
d th
e numb
er of i
nv
entor
y
sto
r
a
ge lo
c
atio
ns
. T
he g
re
ater t
he nu
mbe
r of inv
ento
r
y sto
r
ag
e
loc
at
ion
s in y
our s
upp
ly ch
ain
, the m
or
e l
ikely t
her
e w
il
l be a
n
over
re
action
. Even with ‘
just-in-time
’ pull sys
tem order
ing,
it’s natu
r
al t
hat ma
na
gem
ent o
ver
rea
c
t
s to so
me d
egr
e
e in
contr
o
ll
in
g inv
entor
y. S
o, th
e net ef
fec
t is t
hat th
er
e’
s alw
a
y
s
an amp
li
f
ic
ati
on in th
e sup
pl
y chai
n of an
y fl
uc
tu
atio
n in en
d-
market demand.
Co
ns
eq
uent
ly, if you a
r
e an OE
M in a do
w
ntu
r
n, y
ou w
i
ll al
mo
s
t
alw
a
y
s se
e yo
ur de
man
d temp
or
ar
ily f
al
l by m
ulti
ple
s of t
hat s
ee
n
in the e
nd
-m
ar
ket as t
he su
ppl
y cha
in ad
jus
t
s to ne
w de
man
d
con
dit
ion
s
. T
he do
w
n
st
re
am ef
fec
t is d
if
fere
nt for m
ake-
to-
o
rd
er
manu
f
ac
t
ur
er
s th
an fo
r make
-to
-s
toc
k
. But w
e mu
s
t re
mem
be
r
this i
s a t
wo-
si
ded p
r
obl
em
, bot
h on th
e inb
oun
d sup
ply c
hai
n
and o
n the o
ut
bou
nd on
e. S
o
, an ups
tr
e
am su
ppl
y cha
in’
s imp
ac
t
ca
n st
ill c
a
us
e pr
ob
lem
s
, pa
r
ticul
a
r
ly w
h
en th
er
e is an i
ncr
e
as
e
in dem
an
d. I’v
e se
en t
his a
mpl
if
ic
at
ion p
he
nom
en
on ha
pp
en at
ev
er
y B2
B com
pa
ny I h
av
e wo
r
ked at
. T
he s
a
me ph
en
ome
non a
l
s
o
hap
pen
s w
he
n, in
s
tea
d, th
er
e is a
n incr
e
as
e in d
ema
nd, w
h
ich I
w
ill e
xp
l
ain l
ater
.
In one c
a
se
, an in
dus
tr
ial manu
f
ac
t
ur
er I’m fami
li
ar w
it
h se
ll
s
through ex
tended dis
tr
ibution channel
s and has an amplif
ication
of 2.
8
4. S
o, i
f the
ir en
d-
mar
ket d
ema
nd f
al
l
s b
y 100 b
a
sis p
oint
s
,
the
y s
ee th
eir o
r
der
s tempor
ar
ily f
al
l by 2
8
4 ba
sis p
oi
nt
s. In s
te
el
dis
tr
i
bu
tio
n, th
at amp
l
if
ic
ati
on nu
mbe
r is ab
ou
t 4
0
0 basi
s po
int
s
.
Th
e amp
l
if
ic
ati
on f
ac
to
r in s
ea
so
nal b
usi
ne
s
se
s w
it
h lo
we
r
inv
entor
y t
ur
ns i
s ab
ou
t 1
6
0 ba
si
s po
int
s. C
on
su
mer e
lec
t
r
onic
s
ca
n be a
s hig
h as a s
ta
gg
er
in
g 2
,0
0
0 bas
is po
int
s
.
How lon
g do these te
mporar
y suppl
y cha
in
tr
ansient
s
l
as
t?
Th
e ne
x
t qu
es
t
ion i
s, h
o
w lon
g w
ill t
his t
r
an
sie
nt r
edu
c
tio
n in
dem
and l
a
s
t? If t
he su
ppl
y cha
in we
r
e 100
% ef
fici
ent
, it w
oul
d
cle
ar th
e exce
s
s inv
ento
r
y in one t
ur
n
. Bu
t we k
no
w th
at sup
ply
chai
ns ar
e n
ev
er 10
0
% ef
f
ic
ient
. W
h
en I w
as m
ak
ing t
he
s
e
ca
lcu
l
atio
ns e
ar
l
ie
r in my c
ar
e
er
, bec
au
se I d
idn’t kn
ow t
he ex
ac
t
sup
ply c
hain ef
fic
ien
c
y nu
mb
er
, like any t
yp
ic
al en
gin
ee
r
, I chos
e
5
0
% as m
y wo
r
ki
ng hy
p
oth
es
is
. F
il
l r
ate
s ar
e a co
mpl
ex f
unc
t
ion
of dem
and a
nd in
ve
ntor
y an
d we
re
n’t alw
ay
s v
al
id i
n high
ly
distur
bed situations.
Let
’s make the num
ber
s eas
y in o
ur th
ou
ght ex
pe
r
ime
nt.
Th
e 5
0
% ef
fici
enc
y numb
er me
an
s that a f
our in
ve
ntor
y tu
r
n
comp
an
y w
oul
d ex
per
ience a t
r
an
sie
nt f
all i
n dem
and l
a
s
tin
g for
six m
onth
s
, in oth
er w
or
ds
, t
wo in
ve
ntor
y tur
ns. A
lt
hou
gh th
e
end m
ar
ket ha
s onl
y f
all
en b
y 100 b
as
is p
oint
s
, it f
ee
l
s l
ike yo
ur
comp
an
y is s
el
li
ng into a
n ar
tif
ic
ial
ly muc
h w
or
s
e mar
ket than it
re
al
ly is
. T
he i
ndu
st
r
ial c
omp
an
y I me
ntio
ne
d ear
lier fe
lt l
ike the
end
-m
ar
ket – an
d s
ale
s – ha
d temp
or
ar
ily f
al
len b
y 2
8
4 bas
is
poi
nt
s, n
ot 10
0 ba
sis p
oint
s. But c
or
r
e
sp
ond
ing
ly, whe
n the
r
e’
s
an inc
r
ea
se in d
em
and
, it fe
el
s like yo
ur co
mp
any i
s se
ll
in
g into
an ar
tif
ic
ial
ly mu
ch b
et
ter m
ar
ket th
an it i
s. T
h
at ov
er
shoot i
n
dem
and i
s onl
y a temp
or
ar
y illus
ion
, an
d we’l
l de
al w
i
th tha
t
cas
e shor
tly.
Or
de
r dem
and f
a
ll
s until sup
ply a
nd de
man
d co
me into
equ
ili
br
iu
m. M
ean
w
hil
e, th
e tr
a
nsi
ent r
ed
uc
ti
on in or
d
er
s h
as
re
mo
ve
d th
e exce
s
s inv
entor
y f
r
om th
e sup
ply c
hai
n and
, in
my ex
amp
le, d
ema
nd r
etu
r
ns to a n
ew q
uie
s
cent v
a
lue, a
lb
ei
t
no
w 100 b
as
is p
oint
s sm
al
ler
.
So
, in th
is sim
ple c
a
se o
f fa
ll
in
g dem
and
, th
e s
ale
s ch
all
en
ge
of thi
s hy
p
othet
ic
al m
ake-to
-
sto
ck c
omp
an
y is ma
de w
or
se
by o
rd
er
i
ng un
der
shoot
. T
hi
s ha
s imp
or
tant f
in
anc
ial i
mp
ac
t
s
bec
ause it ar
tificially re
duces a company’s repor
ted g
ro
w
th
.
In pub
li
c com
pa
nie
s
, we r
ep
or
t to th
e mar
ket p
er
i
odi
c
all
y and
,
if a tem
por
ar
y unde
r
sh
oot i
n dem
and – o
ne n
ot r
efl
ec
ti
v
e of th
e
re
al en
d-
ma
r
ket con
dit
ion
s – l
as
t
s s
ix m
onth
s
, it c
an s
er
i
ou
sly
af
fe
c
t th
e pr
oje
c
te
d gr
ow
th r
ate i
n the f
ul
l-y
ea
r re
su
lt
s
, de
pen
din
g
on w
hic
h qua
r
ter of the f
is
c
al y
ea
r the d
is
tur
b
an
ce ha
pp
ens
.
What happe
ns when there i
s an
incr
eas
e
in dema
nd?
No
w let’s con
sid
er th
e opp
os
ite c
as
e, o
ne w
h
er
e the
re i
s
a sud
den i
ncr
e
as
e in de
man
d, w
h
ich w
e’ve se
en r
e
cent
ly,
par
ti
cul
a
r
ly in e
lec
t
r
onic
s. T
he si
mpl
e ans
wer to w
hy t
his
is ha
pp
enin
g is an i
mb
al
an
ce in su
ppl
y and d
ema
nd
. But I
w
ill s
ho
w no
w th
at the p
r
obl
em is a
gai
n mos
t
ly ar
tif
ic
ial a
nd
temp
or
a
r
y, and so ar
e th
e as
s
oc
iate
d inf
l
atio
nar
y te
nde
nci
es
as p
eop
le o
ve
r-
o
r
der to f
il
l an il
lus
ion
ar
y hig
h dem
an
d.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
6
The case of increased d
emand
W
hen t
her
e i
s a sud
de
n incr
e
as
e in d
ema
nd, m
anu
f
ac
tu
r
in
g
ca
pa
ci
t
y i
s li
mite
d, s
o th
e sup
ply c
hain c
a
nnot f
ul
ly r
e
sp
ond
unle
s
s th
er
e is e
xces
s i
dle c
ap
ac
it
y. Nor
mal
ly, manu
fa
c
tur
e
r
s
lo
ad f
ac
to
r
ie
s to so
me
w
he
re b
et
wee
n 8
5% a
nd 9
0
% c
ap
ac
it
y
for f
ixe
d co
st a
bs
or
p
tio
n re
as
on
s
. S
o no
w the ef
fic
ien
c
y of o
ur
sup
ply c
hain i
s
, de f
ac
to, o
nly a
bo
ut 10%
. S
o e
ven i
f w
e ca
n
incr
e
as
e c
ap
aci
t
y tempo
r
ar
i
ly, sa
y fr
om 8
5% to 95
% or e
ve
n
100
%
, unl
es
s w
e ad
d ne
w c
ap
aci
t
y
, the t
ime fo
r sup
ply a
nd
dem
and to r
et
ur
n to e
quil
ibr
ium is ex
tende
d. S
om
e com
pa
nie
s
may h
av
e ex
tr
a shi
f
t
s a
v
ail
a
ble
, bu
t the
n the
y mig
ht not h
av
e
tr
ai
ne
d wo
r
ker
s to s
t
af
f t
hem
, an
d w
ith l
a
bo
ur sh
or
ta
ge
s
dr
i
ve
n by t
his e
xce
ss d
em
and
, auto
mat
ion i
s of
te
n the a
ns
w
er
,
but t
hat i
s a lon
g-te
r
m s
olu
tio
n.
In my e
ar
l
ier c
a
se o
f dem
and r
e
duc
t
ion
, I us
e
d 5
0
% as th
e
ef
f
ic
ien
c
y num
be
r for th
e sup
pl
y chai
n. Bu
t no
w, be
c
aus
e of
manu
f
ac
t
ur
in
g c
apa
ci
t
y l
im
it
s
, th
at ef
f
ic
ien
c
y is ef
fec
t
iv
el
y
only 10
%, s
o th
e r
eco
v
er
y tim
e for e
quil
ib
r
ium to b
e r
ea
che
d is
nom
inal
ly f
i
v
e tim
es a
s lon
g as i
t did w
i
th 5
0
%
. S
o, a c
omp
an
y
that o
nce e
xp
er
i
ence
d a si
x-m
onth r
e
cov
er
y o
n fa
ll
in
g dem
and
coul
d no
w ex
p
er
ie
nce a 2
.
5 ye
ar tr
ansie
nt bef
or
e com
ple
te
re
co
ve
r
y. This i
s an ex
tre
me c
as
e; nat
ur
a
ll
y, compa
nie
s t
ake
ev
er
y po
s
sib
le co
r
r
ec
ti
v
e ac
t
ion to r
e
duc
e this t
imin
g. B
ut th
is
pr
ob
lem p
ar
tly e
xpl
ains w
hy w
e s
ee e
x
ten
de
d re
co
ve
r
ie
s
and s
hor
t
age
s in o
ur su
ppl
y cha
ins
.
In pr
act
ice, t
he s
upp
ly ch
ain ma
y t
ake 18 months to r
e
co
ver
as w
e eng
ag
e in co
unter
m
ea
sur
e
s. M
ea
ntim
e, a ma
s
si
ve
amo
unt of ne
w f
ixe
d c
ap
aci
t
y is bein
g ad
de
d to the s
upp
ly
chai
n, e
sp
ec
ial
ly in t
he s
emi
con
duc
to
r ar
ea
, w
hic
h w
ill a
l
s
o
help gr
adually r
educe thes
e distur
bance time
s and inflation
alo
ng w
it
h it
.
Comp
anie
s mus
t
control th
e
temptation to ov
er-
or
der
In this
increase
d demand case, our
supply chain
manager’
s
tempt
ati
on is to o
v
er
-o
r
der o
ut of f
ea
r of ex
per
ienci
ng co
mp
one
nt
sho
r
tag
es
. A
f
ter all
, y
ou c
an’t ship a c
ar w
i
th e
ve
n one m
is
si
ng
doo
r han
dl
e. T
hat n
ew d
em
and te
mpo
r
ar
ily incr
e
as
e
s a com
pa
ny
’
s
gr
ow
th, b
ut i
t c
an ha
ve s
er
ious f
in
anc
ial co
ns
eq
uen
ce
s
,
par
ti
cul
a
r
ly on o
ur in
ve
ntor
y’s pr
ici
ng
. We ca
n end u
p w
ith
long-dated order
s at much
higher-than-nor
mal pr
icing. This is a
pr
ob
lem qu
eui
ng fo
r an unh
app
y en
din
g.
Th
er
e is t
yp
ic
al
ly on
e ov
er
shoot
, an
d one u
nd
er
sh
oot i
n
any d
y
n
amic s
ys
tem l
ike the o
ne I de
s
cr
i
be h
er
e. Fo
r the
mathematically inclined, w
hen simplifie
d, the dominant mode
make
s the d
y
n
ami
c re
sp
on
s
e loo
k l
ike a se
con
d-
o
r
der s
y
s
tem
.
Th
e pr
e
cis
e ef
fec
t of th
es
e tem
po
r
ar
y in
cr
ea
se
s in d
em
and
depends ver
y much on the
company’s distribution method.
Th
e in
ev
i
ta
ble o
utco
me is t
hat c
omp
ani
es c
a
n end u
p w
ith to
o
much i
nv
entor
y, pos
si
bly at h
igh
er pr
ices
, pr
o
duc
in
g v
ar
ia
nce
s
aga
ins
t s
t
and
ar
d man
uf
ac
t
ur
in
g co
st
s
. In a
n ex
t
re
me c
as
e,
comp
an
ie
s ma
y fa
ce ex
p
ens
i
ve e
xces
s a
nd ob
s
olete (
E&O)
inv
entor
y w
r
i
te-
of
fs w
he
n th
e ine
v
it
ab
le de
man
d f
all
s late
r in th
e
tr
ansient cyc
le, with it
s own over
r
eac
tion tendancies.
The ef
fect
s of con
tain
er sho
r
tages
Th
is ar
ti
fi
cia
l and s
y
n
chr
o
nis
ed s
ur
ge i
n dem
and h
as r
e
sul
ted
in a sho
r
tag
e of sh
ipp
ing c
ont
aine
r
s on s
om
e r
ou
tes w
or
l
d
w
id
e.
Ins
tea
d of th
e his
tor
ica
l $2
,0
0
0 for a cont
ain
er tr
ansi
t f
ro
m Chin
a
to Eur
op
e or th
e Uni
ted St
ate
s
, cont
ain
er co
s
t
s pe
aked at $
2
3
,0
0
0
in 2
0
21. T
o
day i
t’s aro
und $13,0
0
0
. Chi
na’
s zer
o
-C
O
V
ID p
ol
ic
y
ca
us
ed h
ol
dup
s and d
el
a
ys i
n the m
ajo
r E
as
t C
oa
st C
hin
a por
t
s
and f
ac
to
r
ie
s
, w
it
h simi
l
ar in
ef
f
ic
ien
cie
s in ot
her p
or
t
s in th
e US
and Eu
ro
pe
. S
o, in p
ar
t, co
nta
ine
r pr
ic
in
g is a pr
ox
y for sup
pl
y
chai
n sho
r
tag
e
s and i
nfl
at
ion
, ma
kin
g th
e ar
tif
ic
ial d
eman
d
problem even wor
se.
Sy
nchronis
ed
demand
Cle
ar
ly, the w
or
l
d e
con
omy h
as n
ot su
dde
nly g
ro
w
n b
y 1
5% o
r
2
0
%, s
o w
hy h
av
e co
mp
anie
s ex
p
er
ie
nce
d thi
s su
dde
n inc
re
as
e
in demand, par
ticular
ly for electr
onic
s?
The c
ause lie
s squar
ely
in the s
ync
hr
oni
se
d e
con
omi
c ‘sta
r
t up’ af
ter the C
O
V
ID
-
1
9
pandemic, plus the tr
ansient ar
tificial demand de
scr
ibed ear
lier
.
Al
tho
ugh w
e ha
v
e be
en us
ing v
i
de
oco
nfer
en
cin
g too
l
s fo
r man
y
ye
ar
s
, C
OV
ID-
1
9 for
ce
d unpr
ac
tis
e
d st
af
f into the us
er p
op
ul
ati
on
and a
ccel
er
a
ted ac
cept
an
ce of th
is as a w
ay of wo
r
ki
ng – an
d a
sub
st
it
ute fo
r so
me f
ace
-to
-f
ac
e me
etin
gs at t
he of
fice
. T
hat
, in
par
t
, dr
ov
e pa
r
t of the hi
gh de
man
d for e
lec
t
r
onic
s. L
ikely, we w
il
l
not f
ul
ly r
etur
n to pre
-
CO
V
I
D-
1
9 w
ay
s of w
or
king e
ve
r ag
ain.
But t
her
e is a
n ad
dit
ion
al f
ac
to
r at wo
r
k he
re; s
y
n
chr
o
nis
at
ion
.
Al
tho
ugh t
he w
or
l
d’s majo
r con
ne
c
ted e
con
omi
es h
av
e sim
il
ar
per
iodic
it
y in the
ir ec
ono
mic c
ycle
s
, th
ey a
re n
ot no
r
ma
lly a
ll in
pha
se
. In th
e s
ame w
a
y th
at dem
an
d fel
l pr
ec
ipi
tou
sly in l
a
te 2
0
0
8
,
it di
d so b
ec
a
us
e of the s
ync
hr
oni
se
d co
ll
a
ps
e in al
l deb
t mar
ket
s
.
Simi
l
ar
ly, her
e w
e ha
ve a s
y
n
chr
o
nis
ed i
ncr
e
as
e in de
man
d
in mo
st m
ar
ket
s
, ma
de w
or
se by a
n illu
s
or
y dem
an
d cur
v
e.
Howev
er
, global economies will gr
adually set
tle int
o historic
al
phasing patter
ns, easing some of this synchronis
ation problem.
So
, the ‘
0
8
-’0
9 do
w
ntu
r
n occ
ur
r
e
d be
c
aus
e of a de
bt cr
i
si
s
hap
pen
ing s
imul
ta
ne
ous
ly ac
r
os
s th
e wo
r
ld
, w
hic
h pr
od
uce
d a
s
y
nch
ro
nis
e
d ec
ono
mic d
ow
nt
ur
n
. Her
e, w
e ha
d a sim
il
ar b
ut
opp
os
ite pr
o
ble
m: a sy
n
chr
o
nis
ed u
ptur
n and, to m
ake it w
or
s
e,
sy
nchr
onise
d ar
tif
icial excess demand.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
7
Infl
ation
So
me e
con
om
is
t
s ar
gu
e that i
nfl
at
ion h
as b
ee
n c
aus
e
d by
exce
s
si
ve s
t
imul
us p
ack
ag
es t
hat c
r
as
he
d he
adl
on
g into sup
ply
chai
n sho
r
tag
e
s. H
ow
e
ve
r
, t
he
y ar
e t
wo sid
es o
f the s
a
me co
in.
But t
he r
ea
l pr
ob
lem i
s muc
h mor
e co
mp
lex
, an
d the s
o
lut
ion
s
ar
e po
ss
ibl
y simp
ler
. Infl
a
tio
n has b
e
en ma
de w
or
s
e b
y ar
tif
ic
ial
sy
nchronis
ed demand that
cre
ated short
ages
, combined with
high
-
cos
t s
lo
w-
mo
v
in
g cont
ain
er
s a
nd th
e w
ar in U
kr
aine, w
hi
ch
has d
r
i
ve
n up fo
od an
d en
er
g
y pr
i
ce
s. A
d
dit
ion
al
ly, zero
-
C
OV
ID-
1
9
pol
ic
ie
s in Ch
ina h
av
e plu
gg
ed up o
r slo
w
ed s
upp
ly ch
ain
s and
at
ten
dant l
ab
ou
r sho
r
tag
e
s we
re c
au
s
ed b
y al
l the ab
o
ve
. I hav
e
de
sc
r
ib
ed h
er
e w
hy w
e ar
e ex
pe
r
ien
cin
g so
me p
ar
t
s of th
es
e
sup
ply c
hain d
if
fic
ulti
es a
nd w
h
y the
y ha
ve l
a
s
ted s
o lo
ng.
It’s imp
or
tant to r
em
emb
er t
he ma
x
im tha
t the s
ol
uti
on to
high p
r
ice
s i
s high p
r
ic
es
. S
imil
a
r
ly, the s
olu
tio
n to lo
w pr
i
ce
s
is lo
w pr
ices
. C
omp
ani
e
s re
de
si
gn th
eir pr
o
duc
t
s, r
e-
so
ur
ce
supplier
s and use lower
-cos
t substitutes for expen
sive material
s
,
w
hich i
s pa
r
t of the co
mp
ani
es’ me
cha
nis
m to contr
o
l inf
l
atio
n.
Th
e si
ze of the U
S e
con
omy i
s app
r
oxim
ately $
21 tr
il
l
ion
, an
d the
US us
e
s ap
pr
oxim
ately 6
.9 bill
ion b
ar
r
e
l
s of o
il a ye
ar
. So e
ach $10
incr
e
as
e in th
e pr
i
ce of a b
ar
r
el of o
il r
ed
uce
s sp
en
ding p
o
we
r
in the U
S e
con
omy b
y ab
ou
t 3
0 b
asi
s po
int
s
. A $
6
0 inc
re
as
e in t
he
pr
ic
e of a ba
r
r
el of oi
l
, w
hic
h we s
a
w at it
s p
ea
k, i
f ma
inta
ine
d,
re
duc
e
s spe
ndi
ng p
ow
er in t
he U
S ec
ono
my b
y 180 b
as
is p
oint
s
.
Simil
ar
ly,
incr
easin
g interes
t r
ates simulta
neous
ly incre
ase
s
infl
ation an
d l
ater r
e
duce
s i
t by c
oo
li
ng de
man
d.
Th
os
e co
mp
anie
s s
uf
fer
ing t
he gr
e
ates
t n
ear
-te
r
m ch
all
eng
e ar
e
tho
se i
n pr
oc
es
s in
du
st
r
ie
s th
at us
e a lot of e
ner
g
y. Smi
th
s do
es
not ha
v
e high e
ner
g
y
-i
ntens
i
ve m
anu
fa
c
tur
ing pr
oc
es
s
e
s
.
So how does all of t
his en
d?
Th
e Chi
ne
se C
om
muni
s
t Pa
r
t
y C
ong
re
s
s w
il
l ta
ke pl
ac
e in
Oc
tob
er
. It ma
y be w
h
en Chi
na de
cl
a
re
s v
i
c
tor
y ov
er C
O
V
ID an
d
el
imin
ates i
t
s zer
o
-
CO
V
ID pol
ic
y. T
hat w
il
l gr
adual
ly f
r
ee up
plu
gge
d p
or
ts
, e
as
e sup
pl
y cha
in sho
r
tag
e
s, r
e
duc
e cont
ain
er
cos
t
s
, an
d ea
se s
om
e pr
e
s
sur
e on c
omp
on
ent sup
pl
y fr
om C
hina
.
Sup
ply c
hai
n tr
a
nsi
ent
s w
il
l end n
atu
r
al
ly w
i
th tim
e, th
ou
gh not
w
ith
ou
t so
me p
ain
, and a
r
tif
ici
al de
man
d w
il
l re
duc
e. A r
ed
uc
ti
on
in ec
ono
mic s
ti
mulu
s w
ill a
l
s
o he
lp, th
ou
gh I ha
ve r
e
s
er
v
ati
ons
that a r
apid in
cr
ea
s
e in inter
e
s
t r
ate
s ma
y wo
r
k ag
ain
st
pol
ic
ym
aker
s a
nd cr
e
ate r
ece
s
si
on
s in so
me e
con
omi
e
s acr
os
s
the We
s
ter
n w
or
l
d. T
og
eth
er
, thes
e f
ac
to
r
s w
il
l re
du
ce l
ab
our
sho
r
tag
es a
nd e
as
e th
e pr
es
s
ur
e on p
r
ici
ng an
d inf
l
ati
on.
L
as
tl
y, prob
le
ms th
at We
ste
r
n ec
ono
mie
s ha
ve s
uf
fer
ed o
ve
r
the p
as
t t
wo y
ear
s wil
l al
mo
st c
er
tain
ly cr
e
ate a s
w
ath
e of
manufac
tur
ing re
patr
iation initiative
s. T
hat is likely
to reduce
eco
no
mic gr
o
w
th in Chin
a and ot
he
r par
t
s of th
e A
sian ec
ono
my.
But i
t w
ill a
l
s
o cr
e
ate ne
w job
s an
d inv
es
t
ment
s i
n Wes
ter
n
economies and dr
ive ef
f
icienc
y initiative
s and automation
inv
es
t
ment
s
. M
y gr
andm
othe
r wo
uld h
av
e s
aid
, “i
t’s an ill w
i
nd th
at
blows nobody a
ny good”
.
I hop
e thi
s let
te
r ha
s hel
p
ed r
ea
de
r
s
, in s
ome s
mal
l w
ay, to
und
er
s
t
and t
he co
mpl
ex
iti
e
s and ef
fec
t
s of th
is v
er
y unu
sua
l tim
e.
Sir Ge
or
ge W. Buckley
C
HAIR
MAN
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
8
SMITHS VALUE ENGINE
O
U
R B
US
I
N
ES
S M
O
D
E
L
Our c
ompelli
ng busi
ness model leve
r
ages our world-cl
ass enginee
ring, leadi
ng posit
ions
in criti
cal marke
ts
, and gl
obal capabi
lities t
o help cust
omers solve t
hei
r toug
hest
proble
ms. The Smit
hs Va
lue Eng
ine is su
ppor
ted by a robust fina
ncia
l fr
amework
charac
te
r
ised by recurr
ing reven
ues, high m
argins, and st
rong cash gene
r
atio
n.
OUR CULTURE
OUR STAKEHOLDERS
READ MORE
Our culture
P
28
READ MORE
Engaging with our stakeholders
P
41
Our cultur
e inspir
es and emp
owe
r
s our
pe
opl
e. We l
i
ve o
ur Val
ue
s of inte
gr
it
y,
re
sp
ec
t
, cu
s
tome
r foc
us
, o
w
ner
ship, an
d
pa
s
sio
n ev
er
y da
y, in each a
c
tio
n an
d
dec
is
ion t
hat w
e ta
ke. A s
tr
ong c
ult
ur
e
grounded in Va
lues is what has enabled
Smi
th
s to pr
osp
er f
or mo
r
e than
1
70
yea
rs.
Our L
ea
de
r
shi
p Beh
av
i
our
s pro
v
id
e a
unif
i
ed de
s
cr
i
ptio
n of w
hat l
ea
der
ship
mea
ns at S
mi
ths a
nd a sh
ar
ed
comm
it
ment to h
ow w
e ac
t i
n se
r
vi
ce of
our stakeholder
s. Smiths Le
ader
ship
Beh
av
i
our
s align to o
ur th
re
e co
re
prior
itie
s of grow
th, execution and people.
Grow
th
–
Inno
v
ate
s for i
mp
ac
t
–
Se
t
s v
isi
on to in
spi
re
E
xe
cu
ti
on
–
T
akes acc
ount
ab
ili
t
y and ow
n
er
s
hip
–
Del
i
v
er
s r
e
sul
t
s at pa
ce
People
–
Li
v
e
s Sm
ith
s Valu
e
s
–
De
ve
lop
s se
lf an
d oth
er
s
–
Leads inclusi
vely and empo
wer
s
People
Our capable, dedicated and pas
sionate
col
l
ea
gu
e
s ar
e ou
r gr
ea
te
s
t as
s
et
. We a
im to
at
tr
ac
t an
d r
et
ai
n th
e ve
r
y be
s
t by c
r
eat
in
g an
env
i
r
on
me
nt fo
r co
ll
e
ag
ue
s b
as
e
d on r
e
sp
ec
t,
pe
r
s
on
al gr
o
w
th, r
ec
og
ni
ti
on a
nd d
ev
el
op
me
nt
of t
al
ent
, an
d a s
en
s
e of b
el
on
gin
g
and purpose.
Customer
s
Strong and enduring customer rel
ationships
w
il
l su
st
a
in S
mi
th
s int
o th
e fu
tu
r
e.
Meeting
customer needs
and exc
eeding
the
ir e
xp
e
c
t
at
io
ns
, n
ot ju
s
t w
it
h pr
o
du
c
t
s
,
qua
l
it
y and s
er
v
ic
e, b
ut i
n th
e w
ay w
e co
nd
uc
t
bu
sin
e
s
s an
d pa
y at
tenti
on t
o the t
hi
ng
s
tha
t ma
t
ter t
o th
em – f
or e
xa
mp
le, e
th
ic
s
and environment
al per
form
ance – is
a
fu
nd
am
ent
a
l pa
r
t of our b
u
sin
e
s
s mo
de
l an
d
our Values.
Suppl
ier
s
Developing mutually benefic
ial relationships
with our supplier
s and building resilience,
qualit
y and
eff
iciency across our supply
chain
is a f
un
da
me
nt
al c
ont
r
ib
u
tor to o
ur c
u
st
om
er
offer
ing and the long-term competitiv
enes
s
of Smiths.
Communitie
s an
d so
ciet
y
We aim t
o im
pr
ov
e o
ur w
or
l
d b
y co
ntr
i
bu
ti
ng
positi
vely to our communities and societ
y
in general
. Smiths produc
ts and ser
vices
suppor
t critical global indus
trie
s wher
e we
ar
e pi
on
ee
r
in
g pr
o
gr
e
s
s in s
af
et
y, eff
i
ci
en
c
y
and environment
al per
form
ance. We
pl
ay a
be
nef
i
ci
al r
ol
e in l
oc
a
l ec
on
om
ie
s th
r
ou
gh j
ob
creation and skill
s development, procur
ement
and generating ta
x revenues
, operating s
afely
,
enviro
nmentally respon
sibly and ethically
, and
engaging dire
ct
ly.
Regulator
s and
gover
nment
s
We build relationships with gover
nments
,
polic
y
makers and regulator
s across the
wo
r
l
d. We d
o th
is s
o th
at w
e c
an o
pe
r
at
e
ef
f
ec
tiv
el
y, to en
su
re o
ur i
nte
re
s
t
s an
d th
o
se
of th
e in
du
s
tr
i
es i
n w
hi
ch w
e op
er
ate ar
e
repre
sented in decision-making, and in order
to co
ntr
i
bu
te o
ur e
xp
er
ti
se o
n em
er
g
in
g
national, re
gional and global needs.
Investor
s
We ar
e co
mm
it
te
d to o
pe
nn
e
s
s an
d
tran
sparenc
y wi
th all capital prov
iders and the
ef
f
ec
tiv
e m
ana
g
em
ent o
f r
is
k w
hi
le w
e un
lo
ck
v
alu
e an
d r
et
ur
n
s fo
r ou
r in
ve
s
to
r
s.
CHIEF EXECU
TIV
E OFFICER’S REV
IE
W
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
9
Grow
th
Wo
rld
-Clas
s
Engineer
ing
Leading Positions
in Critical Mar
kets
E
xe
cu
ti
on
Global
Capab
ilities
Robust Financial
Framework
People
OUR PRIORITIES
OUR STRENGTHS
OUR PURPOSE
PIONEER
S
OF
PR
O
GRE
S
S
Improving our worl
d
through smar
ter
engineer
ing
MEGATRENDS
OUR STRATEGIC PRIORITIES
O
U
R STR
A
TE
G
Y
W
e are com
mitted t
o per
for
min
g to ou
r pot
ent
ial – g
rowing fas
te
r to un
lock en
hanc
ed
value crea
tion f
or the G
roup. W
e actively m
anage o
ur por
t
folio of b
usin
es
ses and seek t
o
optimis
e th
eir p
er
for
m
ance thr
ou
gh or
ga
nic inv
es
tme
nt and
dis
cipl
ined
us
e of
c
apit
al
for
mergers and ac
quis
itio
ns. In F
Y20
22 we made good progress in advancing o
ur str
at
egy
.
Organic revenue growth
EPS grow
th
ROCE
Operating profit margin
Operating cash conversion
F
Y2
0
21
(
2.2
)%
19.
3
%
13
.9
%
15
.
5
%
12
9
%
F
Y2022
3.8%
1
7.
8
%
14
.
2
%
16
.
3
%
80%
FY2022 PROGRESS AGAINST TARGETS
+M&
A
+M&
A
7-1
0
%
1
5-
1
7%
18
-2
0%
1
00%+
4-
6%
Th
e s
tr
ateg
y f
or e
ac
h di
v
i
si
on i
s t
ail
or
e
d to i
t
s
ind
i
v
id
ua
l ci
rc
um
s
t
anc
e
s an
d ta
ke
s acc
ou
nt of
trends in overal
l demand, specific customer
needs, rel
ative competitor
per
for
mance,
and unde
rly
ing business models. In
addition,
we t
r
ac
k th
e e
vo
lu
ti
on of ke
y G
ro
up
-
w
i
de
se
c
ul
a
r the
me
s a
nd t
re
nd
s an
d th
ei
r im
pa
c
t
on o
ur b
us
ine
s
s
.
Ou
r Pu
r
p
os
e an
d co
mm
it
me
nt to s
us
t
ai
na
bi
li
t
y
le
ad
er
s
hi
p ar
e r
ef
le
c
te
d in o
ur i
nte
nt to p
r
io
r
it
is
e
E
S
G pe
r
for
m
an
ce at S
mi
th
s
. A
s a r
e
su
lt
, w
hi
l
s
t
ea
ch of t
he
s
e th
em
e
s is i
mp
or
ta
nt
, we p
l
a
ce
ad
di
tio
n
al em
ph
as
is o
n ou
r r
es
p
on
se t
o th
os
e
megatrends which rel
ate to the
energ
y tran
sition
ag
en
da a
nd t
he o
ve
r
al
l r
e
duc
tion o
f w
as
t
e an
d
en
er
g
y us
e
. T
hi
s w
il
l al
lo
w u
s to le
v
er
a
ge o
ur
unique capabilitie
s to enable
our customer
s to
me
et th
ei
r su
s
t
ain
ab
il
it
y go
al
s whi
le w
e de
l
i
ve
r
on o
ur o
w
n co
mmi
tm
en
t
s.
Gener
al Industri
al
–
Eff
icient,
cleaner processes
–
Waste reduc
tion,
re-use/recycle
–
Safe operations
–
Equipment reliabilit
y
–
A
s
s
et l
if
e
maximi
sation
–
Light
weight
material
s
Sa
fet
y & Sec
ur
it
y
–
S
afe t
r
a
ve
l
–
Secur
e tra
de
–
Safe people
–
Secure places
–
Smar
t cities
Energ
y
–
Envir
onmental
urgenc
y
–
Energ
y eff
icienc
y
–
Low
er emissions
–
Energ
y
trans
formation
–
A
ir q
ua
li
t
y
Aerospace
–
Faster/seamless
connec
ti
vi
t
y
–
Satell
ite applications
–
Pers
onalised
integr
ated
mobilit
y solution
s
–
T
aki
ng f
u
ll a
d
v
an
ta
g
e of s
tr
on
g de
ma
nd w
e c
ur
r
en
tly s
e
e ac
r
os
s m
os
t of
ou
r ma
r
ket
s
–
Improving new produc
t develop
ment and commercialisation
–
Ex
tend
in
g ou
r re
a
ch b
y bu
il
di
ng o
ut p
r
io
r
i
t
y a
dj
ace
nc
ie
s
–
Supplementing
organic grow
th with disciplined
M&
A
–
Developing high-value green technology solutions for
our customers
–
Emb
e
dd
in
g the S
mi
th
s E
x
cel
le
nc
e Sy
s
te
m ac
ro
s
s th
e Gr
o
up
–
Accelerating pace and est
ablishing a more consistent operating r
hy
thm
–
Co
nti
nu
ou
sl
y imp
r
ov
i
ng t
o de
li
v
er v
a
lu
e fo
r cu
s
tom
er
s
–
Executing agains
t our environmental commitments
–
Bui
ld
in
g up
on o
ur w
or
l
d
-
cl
a
s
s s
af
et
y rec
or
d
–
Acceler
ating talent developme
nt through the Smiths
Leader
ship Behavio
urs
–
Creating an ever-more diver
s
e and inclusive environment
–
Li
v
i
ng S
mi
th
s Va
lu
es e
ac
h an
d e
ve
r
y day
FY2022 progress
–
Fi
ve consecuti
ve quar
ters of organic revenue grow
th
–
Acceler
ated organic revenue grow
th tow
ards tar
get range
–
£51m of re
ve
nu
e fr
o
m ne
w pr
o
du
c
t
s l
a
un
ch
ed i
n F
Y2
0
2
2
–
R&D in
ve
s
t
men
t in
cr
e
as
e
d +
14% to 4.2
% of sa
le
s (+
3
0bp
s v
s F
Y2
0
2
1)
–
+
1
.8
% a
d
dit
io
na
l gr
o
w
t
h f
ro
m t
ar
ge
te
d M&
A
FY2022 progress
–
Resilient operating prof
it margins amidst challenging
macro environment
–
Pr
ice off
set
ting infl
ation and mitigating other supply chain impac
t
s
–
SE
S f
u
ll
y em
be
dd
e
d ac
ro
s
s th
e Gr
o
up, w
i
th a w
el
l-
re
s
ou
rc
ed t
ea
m an
d
25 high-impac
t projec
t
s under
w
ay
–
New sustainabil
it
y str
ategy laun
ched
–
Solid oper
ating cash conversion achieved
FY2022 progress
–
Ref
re
s
he
d s
en
ior l
e
ad
er
s
hi
p tea
m le
a
din
g a f
as
t
er p
ac
e
–
Introduced Smiths Leader
ship Behavio
urs to accelerate
cultur
al change
–
Mor
e a
mb
it
io
us d
i
ve
r
si
t
y g
o
al
s i
n pl
a
ce
–
>
1
,0
0
0 L
e
an S
ix S
ig
ma q
ua
li
f
ic
at
io
ns t
hr
ou
gh o
ur S
E
S A
c
a
dem
y
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
10
Grow
th
E
xe
cu
ti
on
People
“
CHIE
F
E
X
EC
U
T
I
V
E
’
S
R
E
V
I
E
W O
F
T
HE
Y
E
A
R
F
Y2023 out
l
ook
–
E
x
pe
c
t to del
i
v
er 4
.0
% to 4
.5
% or
g
ani
c re
v
enu
e gr
ow
th
w
ith m
od
er
a
te mar
gi
n impr
o
ve
ment
–
Str
on
g or
de
r bo
ok
s an
d le
adi
ng ma
r
ket po
sit
io
ns su
pp
or
t
sust
ained mo
mentum
–
Co
st i
nfl
a
tio
n bei
ng ac
t
i
ve
ly man
ag
ed t
hr
ou
gh pr
o
duc
ti
v
i
t
y
pr
og
r
am
me
s and p
r
ic
ing a
c
tio
ns
–
Mac
ro
ec
on
omi
c and g
eo
pol
i
tic
al u
nce
r
taint
y as we
ll a
s sup
ply
chain challenges continue
F
Y
2
0
2
2 b
usines
s
per
for
m
ance
Co
mme
ntar
y r
efe
r
s to Sm
ith
s Gr
o
up pe
r
for
ma
nce exc
lud
ing
Smi
th
s Med
ic
al
, w
hi
ch w
a
s acco
unte
d for a
s ‘
dis
cont
inu
ed
oper
ations’
before the sale completed
on 6 Januar
y 20
2
2.
Smi
th
s del
i
ve
r
ed gr
o
w
th ahe
ad of e
xp
ec
t
ati
on
s w
ith o
r
gan
ic
re
v
enue u
p +
3.
8
%
. Gr
ow
th ac
cel
er
ate
d to +
4
.
1
% in the s
ec
on
d
hal
f, wh
ich b
uilt o
n the m
om
entu
m we h
ad ac
hie
v
ed in t
he f
ir
s
t
hal
f of +
3.
4%. We e
xec
ute
d wel
l in a c
hal
len
gin
g env
i
r
onm
ent w
it
h
pos
it
i
ve p
r
ici
ng ac
t
ion c
ov
er
i
ng th
e imp
ac
t of e
le
v
ated i
npu
t cos
t
s
,
and m
aint
ain
ed c
los
e ma
na
gem
ent of o
ur sup
ply c
hai
n to mit
igate
other impact
s.
A
s w
e s
tr
i
v
e to cont
inua
ll
y ins
pir
e an
d emp
ow
er o
ur gr
e
at
pe
opl
e, w
e l
aun
che
d our e
nha
nce
d su
st
ai
nab
ili
t
y str
ateg
y and s
et
out n
e
w Smi
th
s Le
ad
er
sh
ip Be
ha
v
iou
r
s
. T
he
se B
eh
av
io
ur
s p
r
ov
i
de
a unif
i
ed de
s
cr
i
ptio
n of w
hat l
ea
der
ships m
ea
ns at S
mit
hs an
d a
shar
e
d co
mmi
tme
nt to ho
w we w
il
l ac
t a
s emp
lo
ye
e
s.
FY2022 BUSINESS PERFORMANCE
(£m)
F
Y2
021
F
Y
20
21
res
truc
tur
ing
charges
Foreign
exchange
Acquisitions
Organic
movement
FY2
022
Revenue
2,406
–
26
42
92
2,56
6
Headline operating profit
372
21
5
11
8
417
Headline operating profit margin
15
.
5
%
+90bps
+0
bps
+
20
bps
(3
0)bps
16
.
3
%
ORGANIC REVENUE GROWTH IN OUR END MARKETS
% of
Smiths
revenue
H1 20
2
2
H2 2
0
2
2
F
Y202
2
General Industr
ial
42%
+
5
.7
%
+16
.
5
%
+11
.
4
%
S
af
et
y & Se
cu
r
it
y
31%
(3.5
)%
(
8.9
)
%
(6.
4)
%
Energ
y
2
1%
+
7.
5
%
+0.
3%
+3.5%
Aerospace
6%
+16
.7
%
+14
.
2
%
+15
.
4
%
Smiths Group
10
0
%
+3.4
%
+
4
.1
%
+3.8%
ORGANIC REVENUE GROWTH (BY BUSINESS)
H1 20
2
2
H2 2
0
2
2
FY2
022
John Crane
+
5
.1%
+2
.5
%
+3.
7%
Smith
s Detec
tion
(
7.
2
)
%
(11
.
3
)
%
(
9.
4
)
%
F
l
e
x
-Te
k
+
1
0.0%
+2
0
.9
%
+
1
6
.1
%
Smiths Interconnect
+12
.9
%
+1
4
.
8
%
+13
.
9
%
Smiths Group
+3.4
%
+
4
.1
%
+3.8%
W
e contin
ued to demonstr
ate strong progress in
F
Y2022
, ex
ecuting at pace on our g
row
th s
trateg
y
.
W
e delivered grow
th ahead of e
xpec
t
ations,
our fastes
t organic grow
th in nearly a decade.
Along with accel
er
ating grow
th, we fur
ther
strengthened our company through incre
ased
investment
s in innovation,
commercialisation and
supply cha
in. Still more
, we returned £6
6
1
m of
cash to our sharehol
der
s through div
idends
and
share repurchas
es.
All of this gives us confidence for c
ontinued
progress in F
Y20
23. Despite an un
ce
r
tain
ma
cr
o
environment, we expec
t to deliver 4
.0
-
4.5
%
organic revenue growth w
ith moder
ate margin
improvement. By focusing on our top priorities of
grow
th, executio
n, and people, we are creating
value for
our customer
s, collea
gues
, communities
and investors. T
ogether
, we’
re building an ever-
stronger future for Smiths.
Many thanks to my colleague
s around the wor
ld
for doing what we do bes
t – improving our world
through smar
ter engineering.
”
Pa
ul Keel
,
CHIE
F E
XEC
U
T
I
V
E O
F
F
ICE
R
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
11
Gro
w
th
Growing faster
is the primar
y dri
ver of unlocking enhanced
value
cre
at
io
n fo
r the G
ro
up
. Th
ro
ug
h the y
ea
r we d
el
i
ver
ed g
ro
w
th in
each quar
ter and FY org
anic revenue growth of +3.8%
, our best
pe
r
f
or
m
an
ce in n
ea
r
ly a de
c
ad
e.
Gr
ow
th ac
cele
r
ate
d in th
e se
co
nd ha
lf fo
r bot
h F
lex-
T
ek (+20.9%
)
and S
mit
hs Inte
rc
onn
ec
t (
+
1
4
.8
%
). Jo
hn Cr
a
ne d
el
i
ver
e
d +2.5
%
gr
ow
th in th
e se
co
nd h
alf im
pa
c
ted b
y ce
s
s
ati
on of s
al
es i
nto
Rus
si
a and s
upp
ly ch
ain di
sr
u
ptio
n, w
h
ich im
pa
c
ted o
ur ab
ili
t
y
to con
ver
t s
tr
on
g or
de
r int
ake into r
ev
enu
e. A
s exp
ec
te
d, S
mit
hs
Dete
c
tio
n cont
inu
ed to b
e af
fe
c
ted b
y th
e so
f
ter A
v
iati
on or
igina
l
equ
ipm
ent (O
E
) ma
r
ket thr
o
ugh t
he s
eco
nd h
alf, b
ut go
o
d or
de
r
gr
ow
th un
der
p
ins o
ur co
nf
ide
nce in t
he m
edi
um-te
r
m pr
o
spe
c
t
s
for th
is s
egm
ent
.
Rev
enu
e gr
ew +
6.7% on a r
ep
or
ted b
asi
s
, to £
2,
5
6
6
m
(F
Y
2
0
21
: £
2
,
4
0
6m
). T
his i
ncl
ud
ed +
£
26
m of f
av
ou
r
ab
le fo
re
ign
exchange transl
ation, and +£42m fr
om the acquisition
of
Roy
al M
eta
l Pr
o
duc
t
s L
L
C (Ro
y
al M
eta
l
) in F
eb
r
uar
y 2
0
21.
Sin
ce Feb
r
u
ar
y 2
0
2
2, Ro
y
al M
eta
l re
su
lt
s ha
ve b
e
en acc
ounte
d for
as or
g
anic g
r
ow
th.
Str
on
g exec
ut
ion t
o ma
x
imi
s
e ma
r
ket re
co
ver
y op
po
r
tuni
t
y
is th
e
fi
r
s
t of the f
our a
c
tio
nab
le le
v
er
s fo
r acc
eler
ating g
ro
w
th.
Our b
usi
ne
s
s ope
r
ate
s ac
r
os
s fo
ur maj
or gl
ob
al en
d mar
kets:
Gen
er
al Indu
st
r
ial
, S
a
fet
y & Sec
ur
i
t
y, En
er
g
y, and A
er
osp
ac
e.
Our s
tr
on
g ma
r
ket po
sit
ion
s
, cou
ple
d w
it
h the b
al
a
nce
d ma
r
ket
exp
os
ur
e we h
av
e ac
ro
s
s our b
usi
ne
s
se
s
, ar
e di
st
inc
t
i
ve l
ong
-
ter
m ad
v
a
nta
ge
s fo
r Smi
th
s.
Smi
th
s or
gan
ic r
ev
en
ue gr
o
w
th in our l
ar
g
e
st e
nd m
ar
ket,
Gen
er
al Indu
st
r
ial
, w
a
s +
1
1.4% in F
Y
2
0
2
2, w
i
th gr
o
w
th
acce
ler
ating in t
he s
ec
ond h
al
f. Thi
s w
as d
r
i
ve
n by J
ohn C
r
an
e’
s
gr
ow
th in s
eg
ment
s l
ike ch
emi
ca
l pr
o
ce
ss
ing
, w
ater t
re
atm
ent
and life sciences, demand for Flex-
T
ek’s
constr
uc
tion produc
ts
and Smiths Interconnect’s
semiconduc
tor test solutions w
hich
re
main
ed s
t
ro
ng th
r
oug
hou
t th
e ye
ar
. Smit
hs or
g
ani
c re
v
enu
e
in S
afet
y & Se
cu
r
it
y wa
s (6
.
4
)%
, r
ef
le
c
tin
g conti
nue
d co
ntr
a
c
tio
n
of the A
v
iati
on OE m
ar
ket
. T
his w
as par
tia
ll
y of
f
s
et by g
ro
w
th
in Smi
th
s Dete
c
ti
on’
s othe
r se
gme
nt
s as w
el
l as gr
o
w
th fr
om
Smi
th
s Inter
con
ne
c
t’s defenc
e-
r
el
ated p
r
od
uc
t
s
. T
he +
3.
5
%
gr
ow
th in th
e En
er
g
y s
egm
ent r
ef
le
c
ted s
tr
on
g de
man
d in Jo
hn
Cr
an
e. A
s menti
one
d ab
ov
e, s
ec
on
d hal
f gr
ow
th w
a
s imp
ac
te
d
by ce
s
s
ati
on of s
a
le
s into Rus
s
ia an
d sup
ply c
hain d
isr
uptio
ns
.
Our f
a
ste
s
t gr
o
w
t
h in F
Y
2
0
2
2 c
am
e in A
er
osp
a
ce +
1
5.
4% as
incr
e
as
ing ai
rc
r
af
t buil
ds dr
o
ve s
tr
on
g de
man
d for F
l
ex-
T
e
k and
Smiths Interconnect’s aerospace solutions
.
A
s p
ar
t of our g
ro
w
th s
tr
ate
g
y, we ha
ve int
ro
du
ced a n
e
w
app
ro
ac
h for o
ur bu
sin
es
s i
n Chin
a. Fr
om t
he s
ta
r
t of F
Y2
0
2
3,
the S
mit
hs Ch
ina l
ea
der
ship tea
m no
w ha
s lea
d r
es
po
nsi
bil
it
y for
our op
er
ation
s in th
e cou
ntr
y (exc
lud
ing S
mit
hs Inte
rc
onn
ec
t
’s
se
mico
ndu
c
tor b
usin
e
ss u
nit w
h
ich w
il
l co
ntinu
e to r
epo
r
t
glob
al
ly
). T
o ref
le
c
t thi
s
, T
ed Wan
, Pr
e
sid
ent of S
mi
ths Ch
ina
, ha
s
join
ed t
he S
mit
hs G
ro
up E
xe
cu
ti
v
e Co
mmi
t
tee
.
Our s
ec
on
d le
ver f
or f
as
ter g
ro
w
th is
improved
new product
development and commercialisation
.
Dur
ing F
Y
2
0
2
2, w
e l
au
nch
ed
21 high
-i
mp
ac
t ne
w pr
o
duc
t
s i
ncl
udin
g F
le
x-
T
ek
’
s P
y
th
on
lin
e s
et
s, a f
l
exi
ble
, mult
i-
l
ay
er pi
pe u
se
d in v
ar
ious he
ati
ng
,
ventilation and air conditioning (HVAC) applications; Smiths
Dete
c
tio
n’
s iCMO
RE au
tom
ated d
etec
ti
on al
go
r
it
hms; a
nd Sm
it
hs
Inter
con
ne
c
t’s spac
e qual
i
fi
ed c
onn
ec
tor
s. Gr
o
ss V
ita
li
t
y
, w
hich
mea
su
re
s th
e cont
r
ib
uti
on of p
ro
du
c
t
s l
aun
che
d in th
e l
as
t
fi
v
e ye
ar
s i
ncr
e
as
ed to 31% (F
Y
2
0
21
: 25
%), de
mo
ns
tr
ating o
ur
success
ful commercialis
ation of
new pro
duct
s.
A
s an i
ndu
s
tr
ia
l tech
no
log
y l
ea
de
r
, c
onti
nuin
g to inv
e
s
t in
R&D ens
ur
es w
e c
ap
it
al
is
e on th
e we
al
th of op
po
r
tunit
ie
s in
our pipel
ine, wi
th incre
asing dem
and for our sus
tainabil
it
y-
re
l
ated p
r
odu
c
t
s. D
ur
i
ng F
Y
2
0
2
2
, we i
nv
es
te
d £9
2
m in R&D
(F
Y
2
0
21
: £
8
4
m
), of w
hich £
8
0
m (
F
Y
2
0
21
: £76m) w
a
s an in
com
e
st
atem
ent ch
ar
ge a
nd £1
2m c
ap
it
al
is
e
d (F
Y
2
0
21
: £
8m
).
Our c
us
tom
er
s an
d thi
r
d pa
r
ties c
ontr
ibute
d a fu
r
ther £1
5m
(
F
Y
2
0
2
1:
£
10
m
)
.
T
o supp
or
t new p
r
od
uc
t l
aun
ch
es
, an
d th
e st
ro
ng d
ema
nd fo
r
exi
s
tin
g so
lut
ion
s
, we i
ncr
e
as
ed c
a
pex +
14.5
% in F
Y
2
0
2
2 to
£(
71)m (F
Y
2
0
21
: £(6
2
)
m). T
hi
s re
pr
e
se
nt
s 1
.5
x dep
re
ci
atio
n an
d
amor
tis
ation (F
Y2
021
: 1
.
2
x
).
Our t
hir
d gr
o
w
th lev
er is
building out priorit
y adjacencies
.
E
ach of
our fo
ur bu
sin
es
s
e
s ar
e exe
cu
tin
g st
r
ate
gie
s to ex
p
and t
heir
gr
ow
th be
y
ond t
hei
r ex
is
tin
g cor
e m
ar
ket po
si
tio
ns
. E
x
amp
le
s in
F
Y
2
0
2
2 inc
lud
e the l
a
unc
h of Smi
th
s Inter
co
nne
c
t’s medi
c
al c
abl
e
as
s
emb
li
es
, an
d Jo
hn Cr
a
ne’s multi-
pur
p
os
e f
ilter; an ef
f
ic
ient
w
ater
-s
a
v
ing s
ol
uti
on fo
r the t
re
atm
ent of p
ro
ce
s
s w
ater i
n pul
p &
pap
er
, minin
g, p
o
wer g
en
er
at
ion p
l
ant
s an
d r
ef
ine
r
ie
s.
Our fo
ur
th gr
o
w
t
h le
ve
r is us
ing
discipline
d M&A
to aug
ment
our or
g
ani
c gr
ow
th fo
cu
s. F
l
ex-
T
e
k
’s acqui
sit
ion o
f Roy
al M
et
al
in Feb
r
ua
r
y 2
0
21 is an e
xcell
ent ex
am
ple of t
his
. A
cqu
ir
ed fo
r
$1
07m (7
.6x tr
aili
ng E
BI
T
DA
), F
Y
2
0
2
2 r
ev
enu
e and p
r
of
it gr
o
w
th
wer
e +
4
8
% and +70
%. D
ur
i
ng H1 20
2
2
, th
e acq
uis
iti
on co
ntr
ib
ute
d
£4
2m o
f re
v
enu
e and £1
1
m of oper
ating p
r
ofi
t
, add
ing 1.8
% on to
p
of or
ga
nic r
e
ven
ue gr
o
w
th for F
Y
2
0
2
2
. Fo
r H2 2
0
2
2
, cont
r
ibu
ti
on
fr
om Ro
y
al M
eta
l w
as in
clu
de
d in ou
r or
gan
ic r
e
sult
s. Roy
al M
et
al
br
ou
ght a com
ple
me
ntar
y H
V
AC p
or
t
fo
li
o, di
st
r
ibu
ti
on s
y
ne
r
gie
s
,
and p
os
iti
v
e pr
i
cin
g. W
h
ile dr
i
v
i
ng su
s
ta
ine
d or
ga
nic gr
o
w
th
re
main
s ou
r pr
i
or
i
t
y, we co
ntin
ue to ex
pl
or
e v
alu
e acc
ret
i
ve M&
A
oppor
tunities acros
s the Group.
In Jan
uar
y 2
0
2
2
, we s
ucc
es
s
f
ul
ly com
pl
eted th
e s
ale of S
mi
th
s
Med
ic
al to I
CU Me
dic
al
, I
nc
. (I
CU
), se
v
er
a
l mont
hs e
ar
l
ie
r tha
n
exp
e
c
ted. T
h
is w
a
s our l
a
r
ge
st p
or
t
fo
li
o mo
ve i
n ov
er a de
c
ad
e
and p
os
iti
on
s the G
ro
up e
ve
n mor
e s
tr
on
gly to a
cce
s
s th
e gr
ow
th
av
ail
able in o
ur ind
us
tr
i
al tec
hno
lo
g
y cor
e
. T
he s
al
e gen
er
a
ted a
pr
of
it o
n disp
os
a
l of £1
.0
bn
, w
it
h imme
di
ate net c
as
h pr
o
cee
ds of
£1
.3
bn an
d f
ur
ther v
a
lue to c
ome f
r
om a p
otenti
al $
0
.
1
bn ear
n
out
and o
ur s
ta
ke in ICU, w
hi
ch is r
e
co
gnis
e
d as a £
0.
4
bn a
s
set o
n our
bal
ance sh
eet
. Fo
r mor
e in
for
m
atio
n on th
e di
v
es
tm
ent
, ple
as
e
se
e note 2
7 of th
e f
ina
nci
al s
tate
ment
s
.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
12
E
xe
c
u
ti
o
n
Stronger
execution
is ou
r s
eco
nd ke
y pr
io
r
it
y
.
In F
Y
2
0
2
2, h
ea
dl
ine o
pe
r
ati
ng p
rof
i
t gr
ew +
1.
7% (
+
£8
m
) on an
or
gan
ic b
asi
s
, and +
12.0
% (+
£
4
5
m
) on a r
ep
or
ted b
asi
s to £
4
1
7m
(
F
Y
2
0
2
1:
£
3
7
2
m
)
.
Hea
dl
ine o
pe
r
ati
ng p
ro
fi
t be
nef
ite
d f
ro
m s
tr
ong p
r
of
it le
v
er
a
ge
in F
lex-
T
ek and Sm
ith
s Inter
co
nne
c
t
. T
his w
a
s p
ar
tial
ly of
fse
t
by th
e imp
ac
t o
f sup
ply c
hain d
isr
uption o
n Joh
n Cr
a
ne an
d
Smi
th
s Dete
c
tio
n, l
ow
er v
ol
ume
s in th
e Av
iat
ion O
E s
egm
ent of
Smi
th
s Dete
c
tio
n, a
nd ou
r cont
inue
d in
ve
s
tme
nt in gr
o
w
th. On a
re
po
r
ted ba
sis
, h
ea
dli
ne op
er
ating p
ro
fi
t inc
r
ea
se
d gi
v
en £
21m of
re
s
tr
u
c
tur
ing cos
t
s b
oo
ked in F
Y
2
0
21, fav
ou
r
ab
le F
X tr
a
ns
l
atio
n of
£5
m an
d H1 20
2
2 co
ntr
ib
ut
ion f
r
om Ro
y
al Me
tal
.
Hea
dl
ine o
pe
r
ati
ng p
ro
fi
t mar
g
in w
as 16.
3%
, d
ow
n (
3
0
) bp
s on an
or
gan
ic b
asi
s an
d up +
8
0bp
s on a r
ep
or
ted b
asi
s.
Hea
dl
ine E
P
S g
re
w +
1
7
.
8
%
, dr
i
v
en b
y he
adl
in
e op
er
at
ing p
r
of
it
gr
ow
th, a r
e
duc
t
ion i
n the ef
fec
ti
v
e he
ad
lin
e t
ax r
ate and th
e
ben
ef
it f
r
om th
e on
goin
g sh
ar
e bu
y
b
ack p
r
ogr
amme
. T
he he
ad
li
ne
ta
x ch
ar
ge fo
r F
Y
2
0
2
2 of £104
m (
F
Y
2
0
21
: £96m
) re
pr
e
se
nt
s an
ef
fe
c
ti
v
e r
ate of 2
7
.6% (F
Y
2
0
21
: 28
.9%
).
RO
CE in
cr
ea
se
d +
3
0
bp
s to 14.2
% ( F
Y2
021
: 13.
9
%). T
hi
s ref
l
ec
t
s
the hi
ghe
r pr
of
it
ab
il
it
y of the Gr
o
up, mo
re t
han o
f
f
se
t
tin
g the
temp
or
a
r
y incr
e
as
e in w
or
k
in
g ca
pi
ta
l
. For f
ur
th
er det
ail o
f the
ca
lcu
l
atio
n, p
le
as
e r
efer to n
ote 2
9 to the f
in
anc
ial s
t
ateme
nt
s
.
Smiths has a strong tr
ack re
cord of oper
ating cash conver
sion,
hav
i
ng a
ver
age
d 100
% o
ve
r the l
ast f
i
v
e ye
ar
s
. T
his y
e
ar
, we
del
i
ve
r
ed s
ol
id o
per
ating c
a
sh co
nv
er
s
ion of 8
0% (
F
Y
2
0
21
: 1
2
9
%)
w
hile n
av
ig
atin
g sup
pl
y cha
in dis
r
upt
ion a
nd th
e as
s
oc
iate
d
inv
es
t
ment in w
o
r
kin
g c
api
t
al
. He
ad
li
ne op
er
ating c
as
h-f
lo
w w
a
s
£
3
3
2m (
F
Y
2
0
21
: £510m).
In F
Y
2
0
2
2, w
e em
be
dd
ed o
ur Smi
th
s E
xce
ll
ence S
y
s
tem ac
ro
s
s
the c
omp
an
y. SE
S is a s
tep ch
ang
e in ap
pr
o
ach a
nd op
er
ating
r
hy
thm; exe
cu
tin
g w
ith g
re
ater p
ace
, ur
ge
nc
y a
nd co
ns
is
tenc
y in
sup
por
t of ou
r pr
i
or
i
tie
s
.
SE
S i
s wel
l r
e
so
ur
ced w
i
th si
x f
ul
l-time M
as
ter Bl
a
ck B
elt
s (
MBB
)
and 2
3 Bla
ck B
elt
s (
BB) i
n pl
ac
e and t
he f
ir
s
t hi
gh
-imp
ac
t B
l
ac
k
Bel
t pr
oj
ec
t
s n
ow un
de
r
w
ay. Both t
he MBB
s and B
Bs ar
e de
di
ca
ted
re
s
our
ce
s le
ad
ing c
ontin
uo
us imp
r
ov
em
ent pr
oj
ec
t
s a
cr
os
s th
e
or
gan
is
ati
on
. T
hei
r cur
r
ent p
r
oje
c
t
s ar
e fo
cu
se
d on im
pr
ov
i
ng
lead times, order book conver
sion, incre
asing capacit
y and cost
re
duc
t
io
n, w
hi
ch ar
e he
lp
ing to b
oth n
av
i
gate th
e imm
edi
ate sho
r
t-
ter
m di
sr
up
tio
ns an
d sup
po
r
t mor
e ef
f
ic
ient m
ar
gin e
xp
an
sio
n
as w
e gr
ow t
he top l
in
e. S
E
S li
nk
s our a
c
tio
ns to o
ur s
tr
ate
g
y,
pr
io
r
it
is
e
s for hi
gh imp
a
c
t and c
re
ate
s f
ull-ti
me co
ntin
uou
s
improv
ement career paths
.
We hav
e al
so ide
nti
fi
ed s
om
e ta
r
geted s
a
v
in
gs pr
o
jec
t
s to d
r
i
ve
enh
ance
d ef
fici
enc
y and ag
il
it
y in re
sp
on
ding to o
ur en
d mar
kets
.
In Joh
n Cr
a
ne, t
he fo
cu
s is to sim
pl
if
y the o
r
gan
is
ati
on to b
et
ter
se
r
ve ou
r cus
tom
er
s a
nd m
ax
imi
se g
ro
w
th opp
or
tun
iti
es
.
In Smi
th
s Dete
c
tio
n, w
e ar
e r
e
st
r
uc
t
ur
in
g th
e ope
r
at
ion
s to be
mor
e r
e
sil
ient a
nd im
pr
o
ve ef
fic
ien
c
y in r
e
sp
ons
e to ma
r
ket
con
dit
ion
s
. T
he no
n-
he
adl
in
e ch
ar
ge fo
r the
s
e s
av
i
ngs p
r
oje
c
t
s
is ex
pe
c
ted to b
e £
3
5
-
4
0
m in F
Y
2
0
2
3, w
ith a
nnu
ali
s
ed b
enef
i
t
s of
£
25
-
3
0
m
, of w
hic
h app
rox
im
ately 5
0
% i
s ex
pe
c
ted to b
e del
i
v
er
ed
in F
Y
2
0
2
3
.
People
Inspiring and empowerin
g our people
is ou
r th
ir
d key pr
i
or
i
t
y.
S
afet
y and w
ell-
bei
ng ar
e al
w
ay
s fo
r
emo
st o
f our p
r
io
r
iti
e
s.
We hav
e a s
tr
on
g and r
o
bus
t s
afe
t
y c
ult
ur
e and s
tr
iv
e for a zer
o
har
m w
or
kpl
ac
e, w
it
h s
afet
y cons
ide
r
at
ion
s integ
r
ate
d into al
l of
our a
c
ti
v
it
ie
s. O
ur Re
cor
da
ble I
nci
dent R
ate for F
Y
2
02
2 w
a
s 0.5
4
and c
ontin
ue
d to tr
a
ck b
elo
w th
e ind
us
tr
y av
er
age an
d in th
e top
quar
tile of industr
y per
formance, ref
lec
ting the impor
t
ance of
s
afet
y in eve
r
y
t
hin
g we d
o.
We conti
nue to s
upp
or
t our c
ol
lea
gu
es in t
he Uk
r
a
ine
/
Rus
sia
re
gio
n ami
ds
t th
e ong
oin
g con
fl
ic
t
. A
s commu
nic
ate
d at the
inter
im r
e
su
lt
s
, we s
top
pe
d al
l s
ale
s into R
us
sia f
ol
lo
w
ing t
he
inv
a
sio
n and a
r
e in the p
r
oce
s
s of e
xi
tin
g our o
per
ation
s in Ru
s
sia
.
A
n as
s
oc
iate
d non
-h
ea
dl
ine c
har
g
e of £1
9m is i
ncl
ude
d in th
e
acco
unt
s
, f
ur
ther d
et
ail
s c
a
n be fo
und i
n note 3 of th
e f
ina
nci
al
st
atem
ent
s
. We ma
de a Gr
o
up
-w
i
de d
onat
ion to t
he Re
d Cr
os
s to
sup
por
t th
e v
it
al w
or
k t
he
y ar
e doi
ng fo
r the p
eo
pl
e of Ukr
aine, a
nd
impl
eme
nted a d
ona
tio
n matchi
ng s
ch
eme fo
r our c
ol
le
agu
es
.
Dur
i
ng F
Y
2
0
2
2 a nu
mbe
r of s
eni
or ap
poi
ntme
nt
s we
re m
ad
e to
the l
ea
der
ship team i
ncl
udi
ng Cl
a
re S
c
her
rer a
s Chief F
i
nan
cial
Of
fi
cer
, Ber
n
ar
d Cic
ut a
s Pr
e
si
dent of J
oh
n Cr
an
e, Ver
a K
iri
kov
a
as Chi
ef Pe
opl
e O
f
f
ic
er an
d Joh
n Os
ter
gr
en a
s Chi
ef Su
st
ai
nab
ili
t
y
Of
fi
cer
. All o
f the
s
e ind
i
v
idu
al
s b
r
in
g a we
alt
h of ex
per
ience w
h
ich
w
ill h
el
p acce
ler
ate our pr
o
gr
es
s i
n exec
ut
ing o
ur s
tr
a
teg
y.
Under this refre
shed leader
ship, as we conti
nue to strengthen
our c
ultu
re
, we h
av
e intr
o
duc
ed a s
et of b
eha
v
io
ur
s: th
e Smi
th
s
Le
ad
er
sh
ip Be
ha
v
iou
r
s
, to br
in
g our V
alu
es to l
if
e. T
he
s
e se
v
en
Beh
av
i
our
s des
cr
ib
e ho
w w
e w
or
k w
i
th on
e anot
her a
nd t
ake
ow
n
er
sh
ip an
d acc
ount
abi
li
t
y for our a
c
tio
ns
. T
he
y app
ly to
ev
er
yo
ne at S
mi
ths – f
r
om th
e sh
op f
lo
or to s
eni
or exe
cu
ti
v
es
.
We dev
el
op
ed th
e Sm
ith
s L
ea
der
s
hip B
eh
av
io
ur
s t
hr
oug
h a
ro
bu
st p
r
oce
s
s of fo
cu
s gr
oup
s
, w
hich g
ath
er
ed t
he v
ie
w
s of
col
le
agu
e
s fr
om 21 c
ount
r
ie
s an
d 72 s
ite
s ac
ro
s
s the o
r
gan
is
ati
on
.
Th
e
se w
er
e fo
ll
ow
ed b
y w
or
k
sh
op
s w
ith o
ur E
xecut
i
ve C
om
mit
tee
to cr
eate an
d r
ef
ine a s
et of b
eha
v
io
ur
s th
at w
oul
d be r
el
ev
a
nt and
comp
el
l
ing fo
r th
e w
hol
e or
ga
nis
at
ion a
nd su
pp
or
t fu
tur
e gr
o
w
th.
Th
e Be
ha
v
iou
r
s w
il
l be
com
e fou
ndat
io
nal to p
ro
ce
s
se
s in
clu
din
g
re
cr
u
it
ment
, de
ve
lop
me
nt, c
ar
e
er pr
o
gr
es
s
ion a
nd r
e
w
ar
d.
We bel
ie
v
e that t
he
y w
ill e
nab
le th
e Smi
th
s cul
tur
e to b
e ev
en
more dy
namic and i
nclusive.
A
n imp
or
ta
nt ste
p in emb
e
ddin
g an in
clu
si
v
e and d
i
ver
se cul
tur
e
is inc
r
ea
sin
g our g
end
er di
v
er
s
it
y. We are foc
us
e
d on pr
o
ac
ti
v
el
y
incr
e
as
ing t
he num
be
r of wo
men i
n le
ade
r
sh
ip r
ole
s at S
mit
hs
.
We hav
e 4
5
% fem
ale r
e
pr
e
se
ntat
ion o
n the S
mi
ths B
o
ar
d, a
nd
we w
elc
ome
d th
re
e ne
w fe
mal
e mem
ber
s to our E
xe
cu
ti
ve
Co
mmi
t
tee in F
Y
2
02
2 (
31
% fem
ale
). Wome
n make up 2
8
% of our
global employee population, but only 24%
of our senior
leader
s
ar
e fem
ale. We a
r
e wo
r
ki
ng to ch
ang
e thi
s w
it
h a pr
ogr
amme of
ac
ti
v
i
tie
s de
si
gne
d to id
enti
f
y
, sup
po
r
t and ad
v
a
nce t
he c
ar
e
er
s of
wo
men at S
mi
ths
.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
13
Del
i
v
er
in
g our E
S
G c
omm
itm
ent
s
, w
hi
ch inc
lu
de t
ar
get
s f
or
re
duc
t
io
n in w
ater
, wa
s
te and p
ac
ka
gin
g, an
d our N
et Zer
o GH
G
emis
s
ion
s co
mmi
tme
nt
s for S
co
pe 1, 2 and 3, w
i
ll im
pr
ov
e th
e
env
ir
o
nme
nta
l
executio
n
of our o
per
ation
s
, our p
r
odu
c
t
s an
d our
sup
ply c
hain
. In pr
e
par
ation f
or s
et
ti
ng s
cie
nce
-b
a
se
d ta
r
get
s
ali
gne
d to ou
r Net Zer
o c
ommi
tm
ent
s
, we m
ad
e fu
r
ther p
ro
gr
e
s
s
und
er
s
t
and
ing a
nd c
ateg
or
i
sin
g the u
nde
r
ly
in
g dat
a
. In F
Y
2
0
2
2,
nor
mali
se
d GH
G emi
ss
ion
s r
ed
uce
d by (
7
.2
)
%
, no
r
mal
i
se
d w
ater
us
ag
e r
edu
ce
d by (
4
.
5
)% a
nd n
or
ma
li
se
d n
on-
r
ec
ycl
ab
le w
a
ste
re
duc
ed b
y (1
1
.5)
%
. T
he
s
e r
edu
c
tio
ns ar
e o
n top of si
gni
fi
c
ant
pr
og
re
s
s al
r
ea
d
y ma
de sin
ce F
Y
2
0
07
, when w
e f
ir
s
t im
ple
mente
d
env
ir
o
nme
nta
l ta
rg
et
s
.
We hav
e s
et and c
omm
unic
ate
d F
Y
2
0
2
4 env
ir
o
nme
nta
l go
al
s
, an
imp
or
tant s
tep to s
upp
or
t the d
el
i
ve
r
y of our c
ommi
tm
ent to Net
Zer
o GHG e
mis
s
ion
s for S
c
op
e 1 & 2 by 2
0
4
0. We ha
ve a c
le
ar
ro
ad
map f
or ho
w w
e w
ill a
chi
ev
e thi
s
, pub
li
she
d on o
ur w
ebs
ite.
It de
tai
l
s th
e pa
th we a
r
e ta
kin
g to ach
ie
ve N
et Zer
o S
cop
e 1 & 2
emis
s
ion
s by 2
04
0 and, f
ur
th
er
m
or
e, ou
r ambi
ti
on to ac
hie
ve N
et
Zer
o S
cop
e 1, 2 and 3 emis
s
ion
s by 2
0
5
0
.
Our
people
ar
e a key as
s
et in d
el
i
ve
r
ing o
ur E
S
G co
mmi
tm
ent
s
.
We kn
ow th
at gr
e
at thin
gs h
app
en w
h
en we p
r
otec
t
, r
es
pe
c
t,
and s
upp
or
t our te
ams
. We nu
r
tur
e our p
eo
ple a
nd de
v
elo
p the
ir
tal
ent
s s
o th
at the
y f
lou
r
ish a
nd c
an h
el
p bui
ld th
e Smi
th
s of
tomo
r
r
ow. We ar
e su
pp
or
ting o
ur te
ams to s
tr
en
gt
hen o
ur lo
c
al
comm
uni
tie
s an
d we a
r
e wo
r
kin
g e
ver
y d
ay w
i
th ou
r unw
a
ve
r
ing
commitment to
str
ong gover
nance and ethical pr
actice.
READ MORE
Sustainability at Smiths
P
24
Our E
S
G appr
oach
Environment, Social and Governance (ESG) performance is
at the very centre of our Purpose, and fundamental to each of
our priorities.
Dur
i
ng F
Y
2
0
2
2
, we e
s
t
abl
is
he
d a S
cie
nce, S
us
t
ain
abi
li
t
y &
E
xcel
le
nce C
omm
it
te
e of th
e Bo
ar
d
, cha
ir
ed b
y Da
me A
n
n
Do
w
li
ng
, to pr
ov
i
de gu
ida
nce a
nd su
per
v
i
sio
n of our s
us
t
aina
bil
it
y
st
r
ate
g
y. We put in pl
ace the c
omp
an
y’s fir
s
t Ch
ief S
us
ta
ina
bil
it
y
Of
fi
cer w
h
o is le
adi
ng o
ur su
st
ain
abi
li
t
y s
t
r
ate
g
y and t
ar
g
et
s
thr
ou
gho
ut t
he bu
sin
e
ss
. T
hi
s s
tr
ate
g
y (
w
hic
h w
ill b
e se
t
out i
n fu
ll in o
ur in
aug
ur
al S
us
t
ain
abi
li
t
y a
t Smi
th
s re
po
r
t in
Oc
tob
er
), de
s
cr
i
be
s ho
w w
e ar
e emb
r
ac
in
g and p
r
io
r
iti
sin
g E
S
G
per
for
mance at S
mi
ths to d
el
i
ve
r on ou
r Pu
r
po
se a
nd cr
e
ate
gen
uine a
nd si
gni
fi
c
ant v
alu
e for a
ll o
ur s
ta
keho
lde
r
s
. T
o supp
or
t
the d
el
i
ver
y of o
ur s
tr
ateg
y, execu
ti
ve c
omp
en
s
atio
n is n
ow l
in
ked
to our su
s
ta
inab
il
it
y tar
g
et
s, w
i
th E
S
G m
etr
i
c
s (GH
G r
edu
c
tio
n and
ene
rg
y u
s
ag
e) in
clu
de
d in ou
r ann
ual an
d our l
on
g-te
r
m inc
enti
v
e
comp
en
s
ati
on pr
o
gr
a
mme
s b
egi
nnin
g in F
Y
2
0
2
3
.
Deli
vering sust
ainable
grow
th
mea
ns l
ev
er
aging o
ur uni
que
ca
pa
bil
it
ie
s to de
ve
lop a
nd co
mme
rc
ial
is
e gr
e
en tec
hn
olo
g
y th
at
w
ill h
el
p tr
a
ns
for
m indus
tr
ies an
d pr
o
v
ide o
ur cu
s
tome
r
s w
it
h
so
lut
ion
s for t
hei
r op
er
at
ion
s
, ena
bl
ing t
hem to m
eet t
hei
r ow
n
envir
onmental targ
ets acros
s climate risk
, energ
y tran
sition
and ot
her e
nv
ir
on
ment
al n
ee
ds
. E
xampl
e
s incl
ud
e meth
ane
abatement;
more ener
g
y eff
icient critic
al safet
y infr
astr
uc
ture;
electr
ic
al heating solutions; tran
smission and stor
age of
alter
n
ati
v
e f
uel
s; car
b
on c
ap
tur
e; an
d nex
t gene
r
ati
on el
ec
t
r
ic
al
conn
ec
to
r
s th
at w
il
l sa
fely a
nd r
el
iab
ly su
pp
or
t the di
git
is
at
ion a
nd
electr
if
ication of infr
astr
uc
ture.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
14
“
C
H
I
E
F
F
I
NAN
C
IAL
OFF
ICER’
S
R
E
V
I
E
W O
F
T
HE
Y
E
A
R
Smiths simple a
nd ef
fec
tive fr
amewor
k
tr
ansl
ates busines
s s
trengths into financial
strengths resulting i
n strong ca
sh generation
that in tur
n fu
el
s reinve
stme
nt in or
ganic gro
w
th
,
complementar
y M&
A and shar
eholder retur
ns.
”
Clare Scher
rer
,
C
HI
E
F
FI
NANC
IAL
OF
FIC
E
R
Th
e t
wo mai
n UK pe
nsi
on s
ch
eme
s an
d the U
S p
ens
ion p
l
an
ar
e we
ll he
dg
ed a
gai
ns
t ch
ang
e
s in inter
e
s
t and i
nfl
at
ion r
ates
.
O
v
er 9
0
% of th
eir a
ss
et
s a
re i
nv
es
te
d in thi
rd
-p
ar
t
y annui
tie
s
,
go
ver
nment b
ond
s
, inv
e
st
ment g
r
ad
e cr
e
dit o
r c
ash
, w
it
h no
re
main
ing e
qui
t
y inve
s
tme
nt
s
. A
s at 31 Ju
ly 2
0
2
2
, ov
er 6
0
% of
the UK l
ia
bil
it
ie
s ha
d be
en d
e-
r
iske
d thr
o
ugh t
he pu
rc
ha
se of
annuitie
s fr
om third
-par
t
y insur
er
s
.
Capital a
llocatio
n
Net de
bt at 31 Jul
y 2
0
2
2 w
as £150m (
F
Y
2
0
21
: £1
,018m), £
8
6
8
m
st
ro
ng
er as a r
e
su
lt of th
e pr
oc
ee
ds r
e
cei
v
ed f
r
om th
e s
ale of
Smi
th
s Med
ic
al in J
anu
ar
y 2
0
2
2
. Net de
bt to he
ad
li
ne EB
I
T
DA h
as
impr
o
ve
d to 0.
3
x (
F
Y
2
0
21
: 1
.6x
).
Given our stron
g balance sheet position and capital allocation
app
ro
ac
h, w
e ini
ti
ated a £
742m sh
ar
e bu
y
b
ack i
n No
vem
be
r 2
0
21
.
A
s at 16 Septe
mb
er 2
0
2
2
, we h
ad co
mpl
eted 76
% of th
e pr
og
r
am
me.
At th
e cur
rent r
u
n-
r
ate an
d sh
ar
e pr
ic
e, w
e wo
uld c
omp
lete th
e
pr
og
r
am
me in e
ar
ly C
Y
2
0
2
3
, w
it
h an ant
icip
ate
d re
du
c
tio
n in sh
ar
es
to ~3
4
6m (a 13% r
e
duc
t
ion
).
In li
ne w
it
h our p
r
ogr
e
s
si
v
e di
v
id
end p
ol
ic
y the Bo
ar
d i
s
re
co
mme
ndin
g a f
ina
l di
v
id
end of 2
7
.3
p, br
in
gin
g the tot
al d
i
v
ide
nd
for th
e ye
ar to 3
9
.6p, a y
ear
-
on
-
ye
ar in
cr
ea
se o
f +5% (
F
Y
2
0
21
: 37
.
7p).
Th
e f
ina
l di
v
ide
nd w
il
l b
e pai
d on 18 Nov
emb
er 2
0
2
2 to s
har
eh
ol
der
s
on th
e re
gi
ste
r at clo
s
e of bus
ine
s
s on 21 O
c
tob
er 2
0
2
2
. Ou
r di
v
id
end
pol
ic
y aims to in
cr
ea
s
e di
v
id
end
s in l
ine w
i
th gr
o
w
th in ear
nings
and c
a
sh-f
lo
w w
ith the ob
jec
ti
ve of maintaining minimum
di
v
ide
nd c
ov
er of ar
o
und t
wo ti
me
s
. Th
e po
l
ic
y e
nab
le
s us to r
et
ain
suf
fic
ient c
a
sh
-fl
ow to f
in
anc
e inv
e
st
ment i
n gr
ow
th an
d me
et our
financial obligations. In sett
ing the lev
el of div
id
end pa
y
ment
s,
the Board consider
s pr
ev
ailing economic conditions and futur
e
inv
es
t
ment p
l
an
s.
Th
e C
omp
an
y of
fe
r
s a Di
v
i
den
d Rein
ve
s
tm
ent P
l
an (
DRIP
) e
nab
li
ng
shar
e
hol
de
r
s to us
e th
eir c
as
h di
v
id
end to b
u
y f
ur
ther s
har
e
s in th
e
Co
mp
any – s
ee o
ur w
ebs
ite fo
r det
ail
s. T
o par
tic
ip
ate in th
e DRI
P
,
shar
e
hol
de
r
s mu
st s
ubm
it th
eir e
lec
t
ion n
oti
ce to be r
e
cei
v
ed b
y
2
8 Oc
tob
er 2
0
2
2 (
the E
le
c
ti
on Da
te). El
ec
t
ion
s r
ece
i
ve
d af
te
r the
Ele
c
ti
on D
ate w
ill a
ppl
y to di
v
ide
nd
s pa
id af
ter 1
8 No
ve
mbe
r 2
0
2
2
.
Pu
rc
has
e
s un
der t
he DR
IP ar
e ma
de o
n, or a
s s
oon a
s pr
ac
tic
ab
le
af
ter
, the di
v
i
den
d p
ay
m
ent date an
d at pr
e
v
ail
in
g mar
ket p
r
ic
es
.
We al
s
o ap
pl
ied p
r
oce
e
ds f
r
om th
e s
ale of S
mit
hs M
edi
c
al to r
edu
ce
debt b
y r
ed
ee
min
g ear
ly a $
4
0
0m bo
nd o
n 1
7 Feb
r
uar
y 2
0
2
2 w
h
ich
w
as du
e to be r
ep
ai
d in Oc
to
be
r 2
0
2
2. T
h
is r
e
sulte
d in gr
o
s
s debt of
£1
,
166
m (F
Y
2
0
21: £
1
,5
4
6m
) as at 31 Ju
ly 2
0
2
2
. T
her
e ar
e n
o f
inan
cia
l
cove
nant
s as
so
cia
ted w
i
th th
e gr
os
s de
bt. A
s at 31 July 2
0
2
2 t
he
wei
ghted a
v
er
a
ge m
atur
i
t
y wa
s 2.
5 ye
ar
s
, w
i
th th
e ne
x
t mat
ur
i
t
y d
ue
in A
pr
il 20
2
3. Ca
sh inc
r
ea
se
d to £1
,0
5
6
m (F
Y
2
0
21
: £
4
0
5
m).
A
n $
8
0
0m (c
.£
6
5
6m at t
he pe
r
io
d-
e
nd exc
han
ge r
a
te) r
ev
ol
v
ing
cr
edi
t f
ac
ili
t
y (RC
F
) rema
ins u
ndr
aw
n and m
atur
e
s in N
ov
emb
er
2
0
24
. T
he o
nly f
in
anc
ial co
v
ena
nt re
l
ate
s to inter
e
st c
ov
er
, unde
r
w
hich E
BI
T
D
A mus
t b
e gr
eate
r tha
n or eq
ual to 3 t
ime
s net i
nter
es
t
.
T
aking c
a
sh an
d th
e RC
F toge
the
r
, to
tal l
i
quid
it
y wa
s ov
er £1.
7bn
at the e
nd of t
he pe
r
io
d.
F
ree cash-flow
In F
Y
2
0
2
2, f
r
ee c
a
sh
-f
lo
w gen
er
a
tio
n w
as £130
m (
F
Y
2
0
21
: £2
8
4m
)
or 31
% of he
ad
li
ne op
er
ating pr
of
i
t ( F
Y
2
0
21
: 7
6%), ref
le
c
tin
g an
incr
e
as
ed i
nv
es
t
ment in i
nv
entor
y an
d c
api
t
al ex
pe
ndi
tur
e
.
Pensions
Incl
ud
ed w
i
thin f
r
ee c
a
sh
-fl
ow w
as £9m o
f pen
si
on co
ntr
ib
uti
on
s,
(F
Y
2
0
21
: £
3
0
m). T
h
e sign
if
ic
ant r
e
duc
t
ion i
n pen
si
on co
ntr
ib
uti
on
s
ref
le
c
t
s no c
ontr
ibuti
on
s ne
ed
ed to th
e T
I Gr
ou
p Pen
sio
n S
che
me
(
T
I
GP
S) and £
3
m to th
e Smi
th
s Indu
s
tr
ie
s P
ens
ion S
c
hem
e (
SIP
S),
gi
ve
n the w
el
l-fu
nde
d p
osi
tio
n of b
oth s
che
me
s
. For F
Y
2
0
2
3, we
exp
e
c
t tota
l ca
sh c
ontr
i
but
ion
s to be a
r
oun
d £(1
2
)
m (in
clu
din
g
a fu
nde
d US p
l
an
, unf
und
ed s
ch
em
es a
nd p
os
t-ret
ir
eme
nt
healthc
are pl
ans).
In Jun
e 2
0
2
2, t
he T
IG
P
S T
r
us
te
e comp
lete
d a de
al to s
ec
ur
e it
s
re
main
ing u
nin
sur
ed p
en
sio
n l
iabi
li
tie
s
, b
y w
ay of a £
6
4
0 mill
io
n
bul
k ann
uit
y bu
y
-in w
i
th Roth
es
a
y L
if
e plc
. T
hi
s mea
ns t
hat al
l
of the S
c
hem
e’
s li
abil
i
tie
s ar
e no
w in
sur
e
d, w
i
th a f
ina
l bu
y
-
out
of the s
ch
em
e to be co
mpl
eted a
s so
on a
s r
ea
so
nab
ly pr
ac
tic
al
,
del
i
ve
r
in
g cer
ta
int
y f
or th
e S
che
me’s 21
,0
0
0 me
mbe
r
s an
d
re
mo
v
ing f
u
tur
e r
i
sk for S
mi
ths
. A
s a re
sul
t of th
e bu
y
-in a £1
71
m
non
-h
ea
dl
ine c
har
g
e w
as r
e
cog
nis
e
d in the F
Y
2
02
2 ac
count
s
and t
he net a
cco
untin
g pe
ns
ion s
ur
pl
us de
cr
e
as
ed to £19
4m
(
F
Y
2
0
2
1:
£
4
1
3
m
)
.
SIP
S is es
tim
ated to b
e in s
ur
pl
us on t
he T
ech
nic
al P
r
ov
i
sio
ns
fu
ndin
g b
asi
s. G
i
ve
n the f
un
din
g po
sit
ion
, no f
ur
th
er c
as
h
contr
ibut
ion
s ar
e cur
rentl
y be
ing m
ade
. T
he G
ro
up an
d the S
IP
S
T
ru
ste
e cont
inu
e to wo
r
k tog
eth
er to pr
o
gr
es
s to
w
ar
d
s fu
ll b
u
y-
out funding.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
15
Foreign exchange
Th
e r
es
ult
s of o
v
er
s
ea
s op
er
ation
s ar
e tr
a
ns
l
ated into s
ter
ling at
av
er
a
ge e
xchan
ge r
ates
. Net a
ss
et
s ar
e t
r
an
sl
ate
d at pe
r
io
d-
en
d
r
ate
s. T
h
e Gr
ou
p is ex
p
os
ed to fo
r
eign e
xcha
nge m
ov
em
ent
s
,
main
ly th
e US D
ol
l
ar an
d the E
ur
o. T
he p
r
inc
ip
al exch
ang
e r
ate
s
,
exp
r
es
s
e
d in ter
m
s of the v
alue of Ste
r
li
ng
, ar
e sho
w
n in t
he
follow
ing table:
Average rates
Per
iod-en
d rates
31 Ju
ly 2
0
2
2
(1
2 months)
31 Ju
l
y 2
0
21
(12 m
o
n
t
h
s
)
31 Ju
ly 2
0
2
2
31 Ju
l
y 2
0
21
USD
1.3
2
1.
3
6
1.
22
1.
3
9
EUR
1
.1
8
1
.1
3
1
.1
9
1.1
7
Li
tigation
Smi
th
s Gr
oup f
a
ce
s dif
fer
ent t
yp
es of l
i
tig
atio
n in di
f
fe
r
ent
jur
is
di
c
tio
ns
. P
le
as
e se
e be
lo
w an up
date o
n the t
wo si
gni
fi
c
ant
litigation prov
isions. For more information, refer to
note 23 of
the f
in
anc
ial s
t
ateme
nt
s.
John Crane, Inc. litigation
Joh
n Cr
an
e, In
c. (
JCI
) a sub
sid
iar
y of th
e Gr
ou
p, cont
inue
s to
ac
ti
v
ely m
oni
tor th
e co
ndu
c
t and ef
fec
t of i
t
s cur
rent an
d ex
pe
c
ted
asb
e
sto
s li
ti
gati
on
, inc
lud
ing th
e ef
f
ec
t
i
ve pr
e
s
ent
atio
n of it
s ‘s
afe
pr
od
uc
t’ d
efen
ce, an
d inten
ds to r
e
sis
t a
sb
es
tos c
a
se
s b
as
e
d
on thi
s defe
nce
. A
pp
r
oxim
ately 3
0
6
,0
00 c
l
aim
s ag
ains
t J
CI ha
ve
be
en di
smis
s
e
d befo
r
e tr
ia
l ov
er th
e l
as
t 4
0 year
s. JCI i
s cur
rent
ly
a defen
da
nt in c
as
e
s inv
olv
i
ng ap
pr
ox
imatel
y 2
2,
0
0
0 c
l
aim
s
.
De
spi
te th
es
e l
ar
g
e num
ber
s of cl
aim
s, s
inc
e the in
cep
tio
n of
asb
e
sto
s li
ti
gati
on a
gain
s
t JCI i
t ha
s ha
d 14
9 c
as
es a
nd h
as ha
d to
pa
y aw
a
r
ds am
ount
ing to ap
pr
ox
imate
ly $1
75m
.
At 31 Jul
y 2
0
2
2, t
he a
ggr
e
gate pr
o
v
isi
on fo
r JCI a
sb
e
sto
s li
ti
gati
on
,
incl
udi
ng fo
r ad
v
er
s
e ju
dge
ment
s a
nd d
efen
ce co
st
s
, am
ounte
d to
£
2
2
9m (
F
Y
2
0
21
: £
21
2m
) ex
pr
e
s
se
d at th
e the
n cur
rent exc
han
ge
r
ate. I
n dec
idi
ng up
on t
he am
ount of t
he pr
o
v
is
ion
, JC
I has r
e
li
ed
on in
dep
en
dent e
xp
er
t ad
v
ic
e fr
om a s
pe
cia
li
s
t.
Titeflex Corpor
ation litigation
T
itef
lex C
or
por
a
tio
n, a su
bsi
dia
r
y of the G
ro
up in t
he F
le
x-
T
ek
di
v
isi
on
, ha
s re
cei
v
ed a n
umb
er of c
l
aim
s in r
ece
nt ye
ar
s f
r
om
ins
ur
a
nce co
mp
ani
es s
e
eki
ng r
ec
omp
en
se o
n a sub
r
og
ated
ba
sis f
or th
e ef
fe
c
t
s of d
ama
ge
s al
leg
ed
ly c
aus
e
d by i
t
s f
lex
ibl
e
gas p
ipin
g pr
o
duc
t
s b
ein
g en
er
gis
e
d by l
ig
htnin
g s
tr
ike
s. I
t ha
s
al
s
o r
ec
ei
ve
d a num
ber o
f pr
od
uc
t l
iab
il
it
y cl
aim
s re
l
atin
g to
this p
r
od
uc
t, s
om
e in th
e for
m of pur
po
r
ted cl
a
s
s ac
ti
ons
.
T
itef
lex C
or
por
a
tio
n bel
ie
v
es t
hat i
t
s pr
od
uc
t
s ar
e a s
afe a
nd
ef
fe
c
ti
v
e me
ans o
f del
i
v
er
in
g gas w
h
en in
s
ta
lle
d in a
ccor
d
anc
e
w
ith t
he ma
nuf
a
c
tur
er
’s inst
r
uc
t
ion
s an
d lo
ca
l and n
ati
ona
l cod
e
s;
ho
we
ve
r
, some c
l
aim
s ha
ve b
ee
n set
tled o
n an ind
i
v
idu
al b
asi
s
w
ith
ou
t adm
is
si
on of l
iab
il
it
y
. T
he c
ontin
uin
g pr
og
re
s
s of cl
aims
and t
he p
at
ter
n of s
et
t
lem
ent
, tog
ethe
r w
it
h re
cent m
ar
ket-pl
a
ce
ac
ti
v
i
t
y, pr
ov
i
de su
f
f
i
cie
nt ev
id
en
ce to r
eco
gni
s
e a li
abil
i
t
y in
the a
cco
unt
s.
At 31 Jul
y 2
0
2
2, a p
r
ov
i
sio
n of £
52m (
F
Y
2
0
21
: £
47
m) h
as b
ee
n
mad
e for t
he co
s
t
s w
hic
h the G
ro
up ex
p
ec
t
s to in
cur i
n re
sp
ec
t o
f
the
s
e cl
ai
ms
. Fo
r the G
ro
up’
s l
iti
gati
on p
ro
v
is
ion
s
, be
c
aus
e of th
e
sign
if
ic
ant u
ncer
t
aint
y as
so
ciate
d w
it
h the f
u
tur
e le
v
el of cl
aims
and of t
he co
s
t
s ar
is
ing o
ut of t
he r
el
ate
d l
iti
gat
ion
, th
er
e is no
guar
antee th
at th
e as
sum
pti
ons u
s
ed to e
s
tima
te the p
ro
v
is
ion
w
ill r
e
sul
t in an a
ccur
ate pre
di
c
tio
n of the a
c
tu
al cos
t
s t
hat ma
y
be incur
r
ed.
Statutor
y r
e
sult
s
Income s
t
atement
Th
e £
3
0
0
m di
f
f
er
enc
e bet
wee
n he
adl
in
e op
er
a
ting p
r
of
it of
£41
7m an
d st
atu
tor
y op
er
ating p
ro
fi
t of £1
1
7
m is no
n-
he
adl
in
e
item
s as d
efi
ne
d in note 3 of t
he f
in
anc
ial s
t
ateme
nt
s. T
h
e l
ar
ge
s
t
con
st
it
uent
s r
el
ate to the T
IGP
S bu
y-
in w
hi
ch r
es
ulte
d in an
acco
unti
ng ch
ar
ge of £17
1m, amor
tis
at
ion o
f acq
uir
ed i
nta
ngib
le
as
s
et
s of £
51
m, Rus
sia
-
re
l
ated im
pa
ir
me
nt and c
lo
sur
e
cos
t
s of £19m, pa
st s
er
v
i
ce co
st
s f
or b
enef
i
t equ
al
is
ati
on an
d
impr
o
ve
ment
s o
f £4
3m
, as
be
s
tos l
it
igat
ion i
n Joh
n Cr
a
ne, In
c, a
nd
subrogation claims in Titeflex Corp
or
ation. Statutor
y oper
ating
pr
of
it of £1
1
7
m w
as £
20
9m l
ow
er t
han l
a
s
t ye
ar (
F
Y
2
0
21
: £3
2
6m
),
ref
le
c
tin
g hi
gher n
on
-h
ea
dl
ine c
har
g
es o
f
f
se
t
tin
g the i
ncr
e
as
e in
hea
dl
ine o
pe
r
at
ing p
ro
fi
t
.
Sta
tuto
r
y fi
nan
ce co
st
s w
er
e £
(1
4
)m (
F
Y
2
0
21
: £(
8
6)
m), m
ainl
y due
to a £
2
2m fo
r
eign e
xcha
nge g
ain o
n an inter
co
mp
any l
oa
n w
ith
Smi
th
s Med
ic
al (
F
Y
2
0
21
: £(
5
0)
m
) w
hich w
as set
t
le
d on di
spo
s
al
;
the m
atchin
g cr
e
dit in d
is
cont
inu
ed op
er
ation
s net
s o
ut to ze
ro i
n
tota
l Gr
oup e
ar
n
ing
s.
Non
-h
ea
dl
ine t
a
xati
on i
tems o
f £1
4
m re
l
ate to amo
r
tis
ati
on of
acquisition-rel
ated in
tangible ass
ets
, legacy pension scheme
arr
angement
s, litigation prov
isions and non-headline finance
item
s. T
h
e s
tat
uto
r
y ef
fe
c
ti
v
e ta
x r
a
te w
as 8
7
% (F
Y
2
021
: 35
%
),
dr
i
ve
n pr
i
ncip
al
ly b
y th
e non
-h
ea
dl
ine s
et
t
lem
ent lo
s
s fr
o
m
the T
I
GP
S b
u
y-
in fo
r w
hic
h the
re w
a
s no a
s
so
ci
ated d
efer
r
e
d
ta
x
. Pl
ea
se r
ef
er to note
s 3 an
d 6 of th
e fi
nan
cial s
t
atem
ent
s fo
r
fur
ther detail
s
.
Dis
continued o
per
ations –
Smiths
Medic
al
On 6 Ja
nua
r
y 2
02
2, the G
r
oup co
mpl
eted t
he s
al
e of Sm
ith
s
Med
ic
al to I
CU Me
dic
al
, I
nc
. (I
CU
) at an e
nter
pr
ise v
al
ue of $
2.7b
n
and a
n equ
it
y val
ue of $
2.
4
bn a
f
ter a
dju
st
ment
s for debt
, l
iab
ili
ti
es
and w
or
k
in
g c
api
ta
l
.
For t
he f
i
ve m
onth
s th
at Smi
th
s Me
dic
al r
em
ain
ed in t
he Gr
o
up, it
del
i
ve
r
ed h
ea
dli
ne pr
of
i
t af
te
r ta
x of £
49m.
Th
e di
f
fe
re
nce b
et
wee
n st
at
utor
y an
d he
ad
li
ne pr
of
i
t af
ter t
a
x
is £
97
3
m, w
h
ich i
ncl
ude
s £1,03
6
m gai
n on di
sp
os
al
, £(
3
3)m
of re
gu
l
ator
y r
eme
diat
io
n cos
t
s
, £(14)
m fr
om t
he im
pa
ir
me
nt
of inv
e
st
ment
s
, £
(
2
2
)
m of fo
re
ign e
xchan
ge l
os
s
es o
n the
inter
com
pa
ny lo
an w
i
th S
mit
hs G
ro
up (c
ontin
uin
g ope
r
at
ion
s), an
d
+£
6m of t
a
x cr
ed
it o
n the
s
e no
n-
hea
dl
in
e item
s. P
l
ea
se r
efe
r to
note
s 3 and 2
7 of t
he f
in
anci
al s
ta
teme
nt
s for f
ur
the
r det
ail
s.
T
otal Group profit a
f
ter tax and EPS
Sta
tuto
r
y pr
of
it af
ter ta
x fo
r the tot
al G
ro
up in
cr
ea
se
d b
y +26
3%
to £1
,0
3
5
m (
F
Y
2
0
21
: £2
8
5m) w
h
ich in
clu
de
d th
e pr
of
it o
n s
ale
of Smi
th
s Me
dic
al
. S
tat
uto
r
y ba
sic E
P
S w
a
s up +27
3
% to 267
.
1
p
(
F
Y
2
0
2
1:
7
1.
7
p
)
.
Statu
tor
y c
ash
-f
low
Sta
tuto
r
y net c
as
h inf
lo
w fr
o
m op
er
at
ing a
c
ti
v
i
tie
s for t
he tot
al
Gr
oup w
a
s £
2
7
9m (
F
Y
2
0
21
: £5
35
m). S
e
e note 2
8 to th
e f
ina
nci
al
st
atem
ent
s fo
r a re
co
nci
li
atio
n of he
adl
in
e op
er
at
ing c
a
sh
-f
lo
w to
statu
tory cash-fl
ow.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
16
JO
HN C
R
A
NE
READ MORE
www.smiths.com
FY2022 FINANCIAL PERFORMANCE
FY2
022
£m
F
Y
20
21
£m
Reported
grow
th
H1
organic
grow
th
H2
organic
grow
th
F
Y
organic
grow
th
Revenue
9
01
865
+4.2
%
+
5
.1
%
+2
.
5
%
+3
.
7%
Or
iginal Equipment
279
273
+2.
2
%
+1
.
8
%
+2
.7
%
+2
.
3
%
Afte
rma
rk
e
t
622
592
+
5
.1
%
+
6
.
6%
+
2.4
%
+4.3%
Energ
y
530
510
+3.
9%
+7.
5
%
+0.3%
+3.5%
Industr
ial
s
3
71
355
+
4
.5%
+1
.
7
%
+5.8
%
+
3.9
%
Headline operating profit
18
8
18
7
+0.2
%
+6.
3%
(8.
9)%
(2.8
)%
Headline operating profit margin
2
0
.9
%
2
1.
6%
(70
)bps
+
20bps
(270)
bps
(
1
40)bps
Statutor
y operating profit
167
18
4
(
9.
2
)
%
Return on
capit
al employed
1
9.
4%
20.0%
(60)bps
R&D c
a
sh c
os
t
s a
s % of s
a
le
s
2.5%
2
.1
%
+4
0bps
REVENUE
(£m)
F
Y
20
21
reported
Foreign
exchange
Organic
movement
FY2
022
repor
ted
Revenue
865
4
32
9
01
OPERATING PROFIT
(£m)
F
Y
20
21
reported
F
Y
20
21
res
truc
tur
ing
costs
Foreign
exchange
Organic
movement
FY2
022
repor
ted
Headl
ine oper
ating prof
it
18
7
4
2
(5)
18
8
Headl
ine oper
ating prof
it margin
2
1.
6%
+5
0bps
+
1
0bps
(1
40)bps
2
0
.9
%
John Crane’
s
stro
ng market position,
glob
al s
er
v
i
ce net
wor
k, an
d col
l
ab
or
ativ
e
customer rel
ationships underp
in its
per
for
mance
. Or
ga
nic r
e
ve
nue w
a
s up
+
3.7% fo
r th
e ye
ar
, wit
h gr
o
w
t
h acr
o
s
s
both o
f Joh
n Cr
a
ne’
s se
gm
ent
s; En
er
g
y
up +
3.
5% a
nd In
dus
tr
ial up +
3.9%
.
On a r
ep
or
ted b
asi
s
, re
v
enu
e w
as up
+
4
.2
%
, w
i
th a £
4
m fa
vo
ur
able fo
re
ign
exchange
impact
.
Ac
t
i
v
it
y lev
el
s r
em
ain
ed h
igh th
r
oug
h
F
Y
2
0
2
2 w
ith +
10.5
% or
de
r gr
ow
th an
d
a re
co
rd o
r
der b
o
ok
. Or
g
anic r
e
ve
nue
gr
ow
th in H2 of +2.
5% (
H1
: +5.
1
%) w
as
temp
er
ed b
y th
e ce
s
sa
tio
n of s
ale
s into
Rus
si
a fr
o
m Mar
ch 2
0
2
2
, a (1
10)
bp
s
imp
ac
t fo
r H2 an
d (6
0
)b
ps fo
r F
Y
2
0
2
2
.
E
x
te
nde
d le
ad t
ime
s on c
er
tai
n mater
i
al
s
al
so impacted order book conver
sion.
Af
ter
ma
r
ket re
pr
e
se
nt
s 69% of J
ohn
Cr
an
e’
s re
v
enu
e (F
Y
2
0
21
: 6
8
%
).
Af
ter
ma
r
ket re
v
enu
e w
as up +
4.
3
% on an
or
gan
ic b
asi
s
. Joh
n Cr
an
e’
s l
ar
ge i
ns
t
all
ed
ba
se a
nd le
ad
ing s
er
v
ic
e of
f
er
in
g po
sit
io
ns
it w
ell to m
ee
t the s
tr
on
g de
man
d for
af
ter
mar
ket r
ep
air
s
, ma
intena
nce a
nd
upg
r
ad
e
s. O
r
gan
ic r
ev
en
ue f
ro
m Or
i
gin
al
Equi
pme
nt (OE
) wa
s up +2.
3
%. T
h
e r
ate
of ne
w or
de
r
s co
ntinu
e
s to impr
o
ve
, w
ith
st
ro
ng O
E or
de
r gr
ow
th in th
e s
eco
nd h
alf.
Cus
tom
er de
man
d ac
ro
s
s bot
h OE an
d
af
ter
mar
ket is s
tr
on
g, d
r
i
ve
n by t
he
increasing demand for energy, a
long
with dec
ar
bonis
ation and the transition
to cle
an en
er
g
y s
our
ce
s
. Cus
tom
er
s a
r
e
re
qui
r
ing s
y
s
tem
s to be m
or
e r
el
iab
le
and energ
y eff
icient, interconnected and
digi
t
all
y ena
ble
d, a
nd us
e di
v
er
s
e lo
w
-
ca
r
bo
n ene
r
g
y so
ur
ce
s. T
h
e
se t
re
nds
ben
ef
it J
ohn Cr
ane as t
he
y re
qu
ir
e
sign
if
ic
ant i
nv
es
tm
ent in n
ew i
nfr
ast
r
uc
t
ur
e
and r
etr
of
i
t
s to ex
is
tin
g inf
r
a
st
r
uc
t
ur
e,
as w
ell a
s ne
w te
chn
olo
g
y to r
edu
ce
cos
t an
d acc
ele
r
ate th
e dep
lo
y
ment o
f
cleaner energ
y.
Joh
n Cr
an
e is w
el
l po
sit
io
ned to s
upp
or
t
customer
s through the energ
y tr
ansition.
Joh
n Cr
an
e is w
or
k
in
g clo
s
ely w
i
th
cus
tom
er
s a
nd s
t
akeho
ld
er
s to a
ccel
er
a
te
innovation acros
s sever
al dec
arb
onisation
the
me
s to re
du
ce met
han
e an
d othe
r
GHG emissions
, increase as
set ef
ficienc
y,
and e
nab
le r
a
pid s
c
al
in
g of lo
w-
c
ar
bon
hy
dr
og
en, a
lon
g w
it
h c
ar
b
on c
apt
ur
e,
uti
li
s
atio
n and s
to
r
ag
e. A
s an exa
mpl
e,
the J
ohn Cr
ane S
en
se
®
digital pl
at
for
m
mon
itor
s the con
di
tio
n and ef
fec
ti
v
en
es
s o
f
equ
ipm
ent an
d hel
ps c
us
tom
er
s o
ptim
is
e
maintenance sche
dules an
d minimise
do
w
ntim
e. Jo
hn Cr
ane’
s ups
tr
e
am
pump
ing s
e
al
s
, u
se
d in w
ater i
ntens
i
ve
indu
s
tr
ie
s
, s
av
e an a
ve
r
a
ge of on
e mil
l
ion
gal
lon
s of w
ater p
er s
e
al pe
r ye
ar
.
Joh
n Cr
an
e s
ec
ur
ed mu
ltip
le n
ew
contr
ac
t
s in su
s
tai
nab
il
it
y and hy
dr
o
gen
incl
udi
ng f
r
om Nat
ur
eWor
k
s
, on
e of th
e
l
ar
ge
s
t pr
o
duce
r
s of bi
op
oly
m
er
s a
nd th
e
NEOM Green Hydr
ogen Pr
ojec
t, fur
ther
cem
entin
g Jo
hn Cr
a
ne’s leade
r
shi
p in
these major env
ironmental themes
.
Hea
dl
ine o
pe
r
ati
ng p
ro
fi
t of £188
m
dec
r
ea
se
d by (
2.
8)
% on a
n or
ga
nic
ba
sis
, a
s pr
ic
in
g of
f
s
et cos
t inf
l
at
ion
but w
as imp
ac
ted b
y in
cr
ea
se
d co
s
t
s
asso
ciated
wi
th supply
chain disruption
and in
cr
ea
s
ed R&D in
ve
s
tm
ent for f
u
tur
e
grow
th. T
o fur
ther strength
en John
Cr
an
e’
s po
sit
ion f
or th
es
e si
gni
f
ic
ant
gr
ow
th op
po
r
tunit
ie
s and to b
et
ter s
er
v
e
cus
tom
er
s a n
umb
er of t
ar
ge
ted ac
t
ion
s
hav
e b
een i
dent
if
ie
d. T
h
es
e ac
t
ion
s ar
e
focused on s
implif
y
ing the
end-to-end
v
alu
e chai
n re
s
ulti
ng in a
n ev
en m
or
e agi
le
and eff
icient business
.
Hea
dl
ine o
pe
r
ati
ng p
ro
fi
t w
as u
p +
0.
2
% on
a re
po
r
ted ba
sis
, w
i
th +
£
2m o
f fa
vo
ur
able
for
ei
gn exch
ang
e an
d £4
m of r
e
s
tr
uc
t
ur
in
g
cos
t
s ch
ar
ge
d in F
Y
2
0
21. The d
if
fere
nce
bet
wee
n s
tat
uto
r
y and h
ea
dli
ne op
er
ating
pr
of
it in
clu
de
s th
e net c
os
t in r
el
ati
on
to the p
ro
v
is
ion f
or Jo
hn Cr
ane, In
c.
asbes
tos litigation and
Russia-
rel
ated
imp
air
m
ent an
d clo
sur
e c
os
t
s
.
DIVIS
IONAL
REVI
EW
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
17
SM
ITH
S D
E
TEC
TIO
N
READ MORE
www.smiths.com
ROCE
RO
CE w
a
s 1
9
.4%, d
ow
n (
6
0)
bp
s
, due
to inv
es
t
ment in w
o
r
kin
g c
api
t
al
through F
Y
20
2
2.
R&D
Ca
sh R&D ex
pe
ndi
tu
re i
ncr
e
as
ed to 2
.
5%
of s
ale
s (
F
Y
2
0
21
: 2.
1
%). Jo
hn Cr
ane’
s
inno
v
at
ion i
s pr
im
ar
il
y foc
us
e
d on
enhancing efficienc
y, per
formance and
sustainabilit
y by using mat
erial
s science
ad
v
an
cem
ent
s to r
ed
uce f
r
ic
t
ion i
n high
-
dut
y wet s
ea
l
s or i
ncr
e
as
e ma
xi
mum
rot
at
ing sp
e
ed r
eq
uir
e
d in ne
x
t ge
ner
ation
hy
dr
og
en co
mpr
e
s
so
r
s
. Joh
n Cr
a
ne
is al
so inv
e
st
ing i
n fa
s
ter mo
de
ll
in
g to
re
duc
e de
ve
lop
ment t
ime a
nd in
cr
ea
s
e
seal per
for
mance.
Joh
n Cr
an
e s
eal
in
g so
lu
tio
ns ha
v
e a
sign
if
ic
ant r
o
le in h
el
pin
g our c
us
tome
r
s
in their sust
ainabil
it
y jo
ur
ney
s thro
ugh
reducing leaks
. Ex
amples of such product
s
incl
ud
e a se
al fo
r dem
and
ing h
yd
ro
c
ar
b
on
pip
el
ine
s w
it
h a uni
que
, pate
nted s
eal
tech
nol
og
y t
hat si
gni
f
ic
antl
y ex
te
nds t
he
mea
n tim
e bet
we
en r
ep
air
, re
duc
ing
mainte
nan
ce, im
pr
ov
i
ng ef
fic
ien
c
y an
d
pr
otec
t
ing t
he en
v
ir
onm
ent f
r
om p
otentia
ll
y
har
mf
ul l
ea
ks
. We al
so l
aun
ch
ed Jo
hn
Cr
an
e S
en
se
®
T
urb
o, w
hi
ch inc
lu
de
s a
fi
r
s
t-to-m
ar
ket s
en
so
r-
en
ab
led d
r
y gas
seal. This ground-breaking t
echnology
intr
od
uce
s th
e Joh
n Cr
a
ne S
en
s
e
®
pl
atfor
m
, prov
iding r
eal-time monitor
ing
and m
ach
ine l
ear
ning dia
gn
os
tic
s o
n
equ
ipm
ent, h
el
pin
g cu
s
tome
r
s to pr
e
vent
lea
k
s and r
e
duce d
o
w
ntime
.
Smiths Detection
gr
ew i
n all s
e
gme
nt
s
except f
or Av
i
atio
n or
i
gina
l eq
uipm
ent (O
E
)
w
hich
, as a
ntic
ip
ated
, w
as im
pa
c
ted b
y it
s
cha
lle
ngi
ng en
d mar
ket. Or
ga
nic r
e
ve
nue
dec
l
ine
d (9
.4
)
% or (
9
.
1)% on a r
e
por
ted
ba
sis
, in
clu
din
g £
2m of f
a
vo
ur
a
ble f
or
eig
n
excha
ng
e. T
he c
es
s
at
ion of s
a
le
s to Rus
s
ia
re
su
lted i
n a he
ad
w
in
d of (
7
0)
bp
s in H2 an
d
(
4
0
)b
ps fo
r the f
ul
l ye
ar
.
OE r
epr
e
s
ented 4
6% of F
Y
2
0
2
2 r
e
ve
nue
s
.
Or
ga
nic OE r
e
ve
nue
s w
er
e do
w
n (
2
2
.
6)
%
.
Go
od gr
o
w
th in OE s
al
es f
or O
th
er S
e
cur
i
t
y
Sy
s
tems (
OS
S) we
re m
or
e th
an of
fse
t by
lo
we
r Av
iat
ion O
E s
ale
s as c
us
tom
er
s
conti
nue to s
t
abi
li
se o
pe
r
ati
on
s po
st t
he
COV
ID pandemic
.
5
4% of Smi
th
s Dete
c
ti
on’
s sa
le
s
wer
e d
er
i
v
ed f
r
om th
e af
term
ar
ket
.
Th
e un
der
l
y
ing t
re
nd in a
f
ter
mar
ket
rev
enues acros
s both Aviation and Other
Se
cu
r
it
y Sy
s
tems c
ontin
ue
d to imp
ro
v
e,
acce
ler
ating in H
2 to del
i
v
er +5
.9% gr
ow
th
in F
Y
2
0
2
2, r
ef
le
c
tin
g th
e ben
ef
it of a l
a
r
ge
ins
t
all
ed b
a
se an
d a r
etur
n to mor
e t
y
p
ic
al
oper
ating patter
ns.
Organic rev
enue from Aviation decreas
ed
(1
4
.7)
% r
ef
le
c
ting t
he s
lo
wd
ow
n i
n the
Av
iat
ion O
E mar
ket
. A
lth
ou
gh w
e exp
e
c
t
conti
nue
d ma
r
ket cha
ll
eng
es i
n the n
ea
r-
ter
m, w
e ar
e in
cr
ea
sin
gly w
el
l po
si
tio
ne
d for
reco
ver
y when it comes. T
ender activ
it
y in
Av
iat
ion h
as s
t
ar
ted to inc
re
as
e, a
nd S
mit
hs
Dete
c
tio
n cont
inu
es to s
ec
ur
e ne
w co
ntr
a
c
t
s
w
ith o
r
der i
ntake gr
o
w
in
g. Re
cent w
in
s
incl
ud
e cont
r
ac
t
s f
or ho
ld b
ag
ga
ge in t
he
US; ch
eck
p
oint s
ec
ur
i
t
y i
n It
aly, Jap
an an
d
Ireland; a
nd for bo
th hold baggage
and
che
ck
po
int in Me
xi
co an
d S
ou
th Ko
re
a
.
Or
ga
nic r
e
ven
ue f
r
om O
S
S gr
e
w by +7
.
1
%,
dr
i
ve
n by d
em
and fo
r Po
r
ts & B
or
de
r
s
so
lut
ion
s
. E
x
pa
ndin
g th
e OS
S seg
ment i
s a
key ten
et of Sm
ith
s Dete
c
ti
on’
s st
r
ate
g
y to
exp
an
d into at
t
r
ac
t
i
ve m
ar
ket ad
jac
enc
ie
s.
Th
is is d
em
on
st
r
ate
d by ke
y OS
S contr
a
c
t
w
ins in F
Y
2
02
2 in
clu
ding h
igh
-
ene
r
g
y X-r
a
y
s
y
ste
ms fo
r cus
to
mer
s in Jap
an an
d the
US; thi
s ye
ar
’s Commo
nw
ea
lth G
am
es
wher
e Smiths Detection wer
e the off
icial
secur
it
y pro
vider;
r
adiation solutions to
tr
a
nsp
or
tat
io
n cus
tom
er
s i
n the U
S; and
defen
ce e
quip
ment d
e
vel
opm
ent p
ro
je
c
t
s for
the U
S De
pa
r
tment of D
efen
s
e.
Gi
ve
n the n
e
w cont
r
ac
t w
i
ns ac
r
os
s Av
ia
tio
n
and O
S
S a
nd th
e st
r
ong o
r
der i
nta
ke
thr
ou
gh F
Y
2
0
2
2 w
e ex
pe
c
t a r
etur
n to
gr
ow
th in F
Y
2
0
2
3.
FY2022 FINANCIAL PERFORMANCE
FY2
022
£m
F
Y
20
21
£m
Reported
grow
th
H1
organic
grow
th
H2
organic
grow
th
F
Y
organic
grow
th
Revenue
655
721
(
9.1
)
%
(
7.
2
)
%
(
11
.
3
)
%
(
9.
4
)
%
Or
iginal Equipment
300
390
(
2
3
.1
)
%
(
1
7.
5
)
%
(
2
6
.7
)
%
(22.6)%
Afte
rma
rk
e
t
355
3
31
+
7.
3
%
+
4.0
%
+7.
7
%
+
5
.9
%
Aviation
4
67
546
(14
.
5
)
%
(12
.
5
)
%
(1
6.5)%
(14
.7
)
%
Other Se
curi
t
y Systems
18
8
17
5
+
7.
4
%
+
8
.1
%
+
6.2%
+
7.1
%
Headline operating profit
73
99
(26.8)%
(1
3.0)%
(4
2.0)%
(
3
0.7
)%
Headline operating profit margin
11
.1
%
13
.7
%
(
260
)bps
(8
0)bps
(570
)bps
(340)bps
Statutor
y operating profit
36
77
(5
3.2
)%
Return on
capit
al employed
7.1
%
9.
7
%
(26
0)bps
R&D c
a
sh c
os
t
s a
s % of s
a
le
s
9.
3
%
7.
4
%
+
1
90bps
REVENUE
(£m)
F
Y
20
21
reported
Foreign
exchange
Organic
movement
FY2
022
repor
ted
Revenue
721
2
(6
8)
655
OPERATING PROFIT
(£m)
F
Y
20
21
reported
F
Y
20
21
res
truc
tur
ing
cost
Foreign
exchange
Organic
movement
FY2
022
repor
ted
Headl
ine oper
ating prof
it
99
6
(1)
(
31)
73
Headl
ine oper
ating prof
it margin
13
.7
%
+90bps
(1
0)bps
(3
4
0)bps
1
1
.1
%
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
18
FLE
X
-
TEK
READ MORE
www.smiths.com
Smiths Detection’
s headline oper
ating
pr
of
it w
a
s do
w
n (
3
0.7
)
% on an o
r
gani
c
ba
sis
, im
pa
c
ted b
y lo
w
er vo
lum
es a
nd
supply chai
n challenges, par
ticularly
the s
c
ar
ci
t
y of e
le
c
tr
oni
c com
po
nent
s
and in
cr
ea
s
ed l
ogi
s
tic
s c
os
t
s
.
Hea
dl
ine o
pe
r
ati
ng p
ro
fi
t of £
7
3m w
as
do
w
n (
26
.8
)
% on a r
ep
or
ted b
as
is
,
including £(
1
)m adver
s
e foreign ex
change
tr
a
nsl
a
tio
n and £
6m of r
e
s
tr
u
c
tur
i
ng
cha
rg
e
s in F
Y
2
0
21.
Hea
dl
ine o
pe
r
ati
ng p
ro
fi
t mar
g
in w
as
1
1
.
1%, dow
n (
3
4
0)
bp
s on an o
r
gani
c
ba
sis a
nd (
2
6
0)
bp
s on a r
ep
or
ted b
as
is
.
A numb
er of r
e
s
tr
u
c
tur
i
ng ini
ti
ati
ve
s
ar
e und
er
w
ay t
hat w
il
l en
abl
e Smi
th
s
Dete
c
tio
n to be m
or
e r
es
il
ient in
re
sp
on
din
g to cha
nge
s in i
t
s en
d mar
kets
and deli
ver impro
ved mar
gins.
Th
e di
f
fe
re
nce b
et
wee
n st
at
utor
y an
d
hea
dl
ine o
pe
r
at
ing p
ro
fi
t pr
i
mar
i
ly r
efl
ec
t
s
amo
r
tis
ati
on of ac
quir
e
d int
ang
ibl
es a
nd
a cha
rg
e for w
r
ite-
do
w
n
s as
s
oci
ated w
i
th
Smiths Detection’
s
exit fr
om Russia.
ROCE
RO
CE de
cr
e
as
ed b
y (
2
6
0)
bp
s to 7
.
1
%
,
due to l
ow
er p
ro
fi
ta
bil
i
t
y in F
Y
2
0
2
2
.
R&D
Ca
sh R&D ex
pe
ndi
tu
re w
a
s 9
.3
% of s
al
es
,
+
1
90
bp
s hig
her t
han l
a
s
t ye
ar
. Thi
s inc
lud
es
an inc
r
ea
se in c
us
tom
er f
und
ed p
r
oje
c
t
s to
£1
4
m (F
Y
2
0
21
: £
9m).
Smi
th
s Dete
c
tio
n cont
inu
ed to in
ve
s
t
in the d
ev
el
opm
ent of n
ex
t g
en
er
at
ion
dete
c
tio
n de
v
ice
s for t
he d
efenc
e mar
ket,
ne
w alg
or
i
thm
s to imp
r
ov
e the d
etec
t
ion
of dan
ger
o
us go
o
ds
, and d
igi
t
al so
lu
tio
ns
to strengthen our af
termar
ket proposition
to make pe
op
le an
d inf
r
a
st
r
uc
t
ur
e
s
afer
. Cer
ta
in pr
o
gr
am
me
s ar
e co
-
fu
nde
d b
y st
r
ate
gic c
us
tom
er
s s
ee
kin
g
nex
t-generation solutions to securit
y
cha
lle
ng
es
. D
ur
in
g F
Y
2
0
2
2, w
e l
au
nch
ed
a ne
w high
-
vo
lum
e air c
ar
go s
cr
e
eni
ng
tech
nol
og
y, as w
el
l as an e
x
ten
sio
n of our
automat
ed detection algorithm, iCMORE,
to enable
cur
renc
y detection, suppor
ting
the f
ig
ht aga
ins
t gl
ob
al mo
ne
y l
aun
de
r
ing
,
we
ap
ons d
etec
t
ion
, l
ith
ium b
at
ter
i
e
s and
dangerous goods.
F
l
e
x-
Te
k
’s
agile
oper
ating
model and
close customer rel
ationships contributed
to a re
co
rd y
e
ar for t
he b
usin
e
ss
.
Or
ga
nic r
e
ven
ue in
cr
ea
se
d +
1
6.
1
%,
w
ith r
e
cor
d gr
o
w
th in th
e se
con
d ha
lf
of +20.9%
. Rev
en
ue gr
e
w +27
.
4% on a
re
po
r
ted ba
sis
, in
clu
din
g +
£1
4
m fa
v
our
able
foreign exchange
tr
ansl
ation and +£42m
from acquisitions.
Or
ga
nic r
e
ven
ue f
r
om F
le
x-
T
ek
’
s Indu
s
tr
ia
l
se
gme
nt w
as up +
16.3
%
. Str
on
g gr
o
w
t
h
w
as dr
i
v
en b
y de
man
d for i
t
s co
ns
tr
u
c
tio
n-
re
l
ated p
ro
du
c
t
s in th
e US
, pa
r
ticul
arl
y
for HVAC applications, wher
e Flex-
T
ek
continued to
outper
form the under
lying
mar
ket
. O
th
er dr
i
v
er
s i
ncl
ud
ed go
o
d gr
ow
th
of it
s in
du
st
r
ial h
eat a
ppl
ic
at
ion
s an
d ac
ti
v
e
price management. Demand remained
st
ro
ng t
hr
ou
gho
ut th
e se
co
nd h
alf, an
d
the b
usi
ne
s
s re
mai
ns v
ig
il
ant of ke
y
ma
r
ket
in
di
c
ato
r
s
.
Dur
i
ng th
e se
co
nd h
alf, F
le
x-
T
ek c
onti
nue
d
to exec
ute i
t
s gr
ow
th s
tr
ateg
y, laun
chin
g
the P
y
thon l
ine s
et
s p
r
odu
c
t, a m
ulti
-l
a
ye
r
pip
e us
ed in v
ari
ou
s H
VAC ap
pl
ic
ati
ons
,
re
pl
ac
in
g the t
r
ad
iti
on
al an
d mor
e co
s
tly
cop
per p
ip
es
. I
t al
s
o ex
p
and
ed i
t
s met
al
duc
ti
ng of
fer
in
g w
hich w
as intr
od
uce
d to
the p
or
t
fol
io a
s p
ar
t of the Ro
y
al Met
al
s
acq
uisi
ti
on, w
i
th t
he op
eni
ng of a d
edi
c
ated
gr
eenf
i
eld f
a
cil
it
y in T
exas
.
Organic re
venue fr
om Flex-
T
ek
’
s Aerosp
ace
se
gme
nt w
as up +
14.6% as t
he ae
r
osp
ac
e
mar
ket b
en
efi
t
s f
ro
m an in
cr
ea
sin
g numb
er
of aircr
af
t buil
ds.
Headline oper
ating profit increas
ed
+
21.
7% o
n an or
g
ani
c ba
sis
, r
ef
le
c
tin
g
incr
e
as
ed v
ol
ume
s an
d s
tr
on
g cos
t
man
age
ment
. H
ea
dl
ine op
er
ating p
ro
fi
t
w
as up +
3
7
.
1% at £
133
m on a r
ep
or
ted
ba
sis
, in
clu
din
g +
£
3m f
av
ou
r
ab
le fo
r
eign
exchange transl
ation and +£
1
1m
fr
om
acquisitions. Headline oper
ating profit
mar
gi
n w
as up +
150b
ps to 2
0
.6%, o
n a
repor
ted basis. The dif
fer
ence bet
ween
st
atu
tor
y an
d he
adl
in
e op
er
a
tin
g pr
of
it i
s
due to am
or
tis
at
ion o
f acq
uir
ed i
nta
ngib
le
ass
ets and prov
ision for Titeflex Corpor
ation
subr
ogation cl
aims
.
FY2022 FINANCIAL PERFORMANCE
FY2
022
£m
F
Y
20
21
£m
Reported
grow
th
H1
organic
grow
th
H2
organic
grow
th
F
Y
organic
grow
th
Revenue
6
47
508
+2
7.
4
%
+10
.
0
%
+
2
0
.9
%
+16
.1
%
Industr
ial
s
5
31
409
+2
9.
8
%
+
8.5%
+2
2
.
6
%
+1
6
.
3
%
Aero
space
116
99
+17.
5
%
+
16
.1
%
+1
3
.
4%
+1
4
.
6
%
Headline operating profit
13
3
97
+
3
7.1%
+18
.
3
%
+24
.
3
%
+
21.7
%
Headline operating profit margin
2
0
.
6%
1
9.1
%
+
1
50bps
+
1
50bps
+
6
0bps
+90
bp
s
Statutor
y operating profit
10
6
83
+
2
7.
7
%
Return on
capit
al employed
2
5
.
6%
2
1.
6
%
+40
0
bps
R&D c
a
sh c
os
t
s a
s % of s
a
le
s
0
.
4%
0.5%
(1
0)bps
REVENUE
(£m)
F
Y
20
21
reported
Foreign
exchange
Acquisitions
Organic
movement
FY2
022
repor
ted
Revenue
508
14
42
83
6
47
OPERATING PROFIT
(£m)
F
Y
20
21
reported
Foreign
exchange
Acquisiti
ons
Organic
movement
FY2
022
repor
ted
Headl
ine oper
ating prof
it
97
3
11
22
13
3
Headl
ine oper
ating prof
it margin
1
9
.1
%
+
1
0bps
+5
0bps
+
90
bps
20
.
6%
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
19
SMI
T
HS
IN
T
E
R
C
ONNEC
T
READ MORE
www.smiths.com
In Feb
r
ua
r
y 2
02
1
, the G
r
oup a
cqui
re
d Ro
y
al
Met
al
, a le
adi
ng m
anu
fa
c
tur
er o
f re
si
de
ntial
and l
ig
ht comm
er
ci
al H
VAC p
ro
du
c
t
s for
$1
07m. D
ur
in
g H1 20
2
2 th
e acq
uis
iti
on
contr
ibute
d £4
2
m of r
ev
enu
e and £1
1
m of
ope
r
at
ing p
ro
fi
t
. Sin
ce Fe
br
u
ar
y 2
0
2
2, Ro
y
al
Met
al r
es
ult
s h
av
e be
en a
cco
unted fo
r as
organic gro
w
th.
Roy
al M
eta
l com
ple
ment
s t
he o
rg
ani
c
gr
ow
th th
at F
lex-
T
ek is alr
e
ad
y dr
iv
in
g
thr
ou
gh th
e de
ve
lop
ment o
f inn
ov
at
i
ve ai
r
distribution produc
t
s that
suppor
t improv
ed
ene
rg
y e
f
f
ic
ienc
y and in
do
or air q
ual
i
t
y.
Th
e ac
quis
it
ion p
r
ov
id
e
s the b
en
efi
t
s of
complementar
y HVAC por
t
folios
, sy
ner
gies
in distribu
tion, and positi
ve pricing
,
dem
on
st
r
ati
ng th
e v
alu
e th
at we c
an c
r
eate
thr
ou
gh ou
r high
ly di
sc
ipl
in
ed an
d se
le
c
ti
ve
M&A proc
ess.
ROCE
RO
CE in
cr
ea
se
d +
4
00
b
ps to 2
5.
6%
ref
le
c
tin
g th
e re
co
r
d pr
of
it gr
o
w
th
in F
Y
2
0
2
2
.
R&D
Ca
sh R&D ex
pe
ndi
tu
re r
em
ain
ed b
ro
a
dly
con
sis
tent at 0
.
4% of sa
le
s (F
Y
2
0
21: 0.5%
).
R&D is fo
cus
e
d on de
v
elo
pin
g ne
w pr
od
uc
t
s
for th
e con
s
tr
u
c
tio
n mar
ket, and an
exp
an
de
d pr
o
duc
t of
fer
in
g in ae
ro
sp
ace
.
Smiths Inte
rconnect
’
s
cut
ting-edge
so
lut
ion
s an
d st
r
ong p
os
iti
on
s in it
s m
ar
ket
sub
se
gme
nt
s und
er
p
inn
ed a v
er
y s
tr
on
g
F
Y
2
0
2
2 per
for
mance w
i
th o
rg
ani
c re
v
enu
e
up +
1
3.9%
. Re
ven
ue gr
o
w
th in H2 2
0
2
2
acce
ler
ated to +
1
4
.8
% r
ef
le
c
tin
g on
goin
g
mom
entu
m fr
o
m a gr
ow
in
g or
d
er bo
ok a
nd
new produc
t launches
. Revenue increased
by +
1
6.
3
% on a r
ep
or
ted b
as
is
, w
it
h +
£6
m
favour
able foreign exchange transl
ation.
Th
is s
tr
on
g pe
r
for
ma
nce r
ef
le
c
t
s gr
ow
th
acros
s the semiconductor test busine
ss
w
ith c
ontin
ue
d hig
h dem
and
, co
uple
d w
it
h
ne
w pr
od
uc
t l
au
nch
es a
nd n
ew c
us
tom
er
w
ins
. Sm
ith
s Inter
co
nne
c
t’s spa
ce an
d
def
ence p
roducts als
o delivered g
ood
gr
ow
th, i
n pa
r
ticul
a
r com
ing f
r
om th
e
l
aunc
h of 2
8
G f
ibr
e
-
opt
ic tr
ans
cei
v
er
s fo
r
satelli
te communications and from sp
ace-
qual
i
fi
ed c
onn
ec
tor
s. Du
r
ing t
he s
ec
ond
hal
f, Smi
ths I
nterc
onn
ec
t p
r
ogr
e
s
s
ed
it
s gr
o
w
th into adj
acen
cie
s w
i
th th
e
succ
es
s
f
ul int
ro
du
c
tio
n of it
s f
ir
st me
dic
al
cable as
sembly pr
oduc
t.
Smi
th
s Inter
con
ne
c
t enter
s F
Y
2
0
2
3
w
ith s
igni
f
ic
ant or
d
er
s f
or it
s spac
e-
qualified pr
oduct
s for commercial
satellite constellations
, next gener
ation
chip te
s
tin
g so
lu
tio
ns an
d for m
ed
ic
al
cable as
sembl
ies
.
Hea
dl
ine o
pe
r
ati
ng p
ro
fi
t inc
r
ea
se
d +
3
9
.
7
%
on an or
g
ani
c ba
sis
, w
i
th gr
o
w
th dr
i
ve
n
by stro
ng revenue per
formance, positi
ve
pricing actions and good supply cha
in
man
age
ment
. H
ea
dl
ine op
er
ating p
ro
fi
t w
as
up +
8
8.
2
% to £6
5
m on a r
ep
or
ted b
as
is
,
incl
udi
ng £10m of r
es
tr
uct
ur
in
g co
st
s i
n
F
Y
2
0
21
. He
adl
in
e op
er
at
ing p
r
of
it ma
r
gin
w
as 18.0
%
, up +
68
0bp
s on a r
ep
or
ted b
asi
s
and +
3
30
bp
s on an o
r
gan
ic b
asi
s.
Th
e di
f
fe
re
nce b
et
wee
n st
at
utor
y an
d
hea
dl
ine o
pe
r
at
ing p
ro
fi
t r
efl
ec
t
s t
he
amor
tis
ation of acqu
ired intangibles.
ROCE
RO
CE in
cr
ea
se
d +
7
5
0
bps to 16.
3%
, dr
ive
n
by hi
ghe
r pr
of
it
ab
il
it
y
.
R&D
Ca
sh R&D ex
pe
ndi
tu
re r
ep
r
es
ente
d 5.
6%
of s
ale
s (
F
Y
2
0
21
: 6.
3%
), w
it
h the a
bs
olu
te
spe
nd y
ear o
n ye
ar r
em
aini
ng th
e s
ame
.
R&D is fo
cus
e
d on br
ingin
g to mar
ket n
ew
pr
od
uc
t
s th
at imp
ro
v
e con
ne
c
ti
v
it
y and
pr
od
uc
t inte
gr
it
y in de
man
din
g ope
r
at
ing
envir
onments. Pr
oduct l
aunches included
the n
ew s
pa
ce qu
al
if
ie
d con
ne
c
tor
s
and optical tr
anscei
ver
s, w
hich enable
high-
speed, relia
ble da
ta processing
for co
mmu
nic
ati
on s
atel
l
ite
s an
d GP
S
navigation sy
stems; medical connector
s
us
ed in c
r
it
ic
al c
ar
e; an
d upg
r
a
de
s of s
emi
-
test
prod
ucts.
FY2022 FINANCIAL PERFORMANCE
FY2
022
£m
F
Y
20
21
£m
Reported
grow
th
H1
organic
grow
th
H2
organic
grow
th
F
Y
organic
grow
th
Revenue
363
3
12
+16
.
3
%
+12
.9
%
+1
4
.
8
%
+1
3
.
9
%
Headline operating profit
65
35
+
88.2
%
+
5
8
.7
%
+2
8
.
0
%
+39
.
7%
Headline operating profit margin
18
.
0
%
11.
2
%
+
6
80
bps
+490
bps
+
1
90
bps
+33
0bps
Statutor
y operating profit
64
34
+8
8.2%
Return on
capit
al employed
16
.
3
%
8.8%
+
750bps
R&D c
a
sh c
os
t
s a
s % of s
a
le
s
5.
6%
6.
3%
(
70)
bps
REVENUE
(£m)
F
Y
20
21
reported
Foreign
exchange
Organic
movement
FY2
022
repor
ted
Revenue
312
6
45
363
OPERATING PROFIT
(£m)
F
Y
20
21
reported
F
Y
20
21
res
truc
tur
ing
costs
Foreign
exchange
Organic
movement
FY2
022
repor
ted
Headl
ine oper
ating prof
it
35
10
1
19
65
Headl
ine oper
ating prof
it margin
11.
2
%
+
3
30
bps
+
1
0bps
+33
0bps
18.
0
%
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
20
Financ
ial tar
get
s
Our f
ina
ncia
l ta
rg
et
s we
re s
et out a
t our C
ap
it
al Ma
r
kets D
ay in No
vem
ber 2
0
21
. Our ro
bus
t f
inan
cia
l fr
a
mew
or
k
under
pins the Smiths Value Engine powered by recur
rin
g revenue grow
th, high mar
gins, low as
set intensit
y and
exc
eptional cash gener
ation.
Al
l me
as
ur
es e
xclu
de S
mit
hs Me
di
ca
l
. A
lter
n
ati
v
e Per
for
m
anc
e Me
asu
re
s (
A
P
Ms
) an
d key p
er
for
ma
nce i
ndi
ca
tor
s ar
e d
efi
ne
d in note 2
9
to the f
in
anc
ial s
t
ateme
nt
s.
MEDIUM-
TERM
TA
R
G
E
T
+4-6%
MEDIUM-
TERM
TA
R
G
E
T
18-20%
MEDIUM-
TERM
TA
R
G
E
T
+7-10%
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P
11
P
11
P
11
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
21
K
E
Y
P
ERFORM
A
NCE
INDI
C
A
TO
R
S
Key
Link to strategy
Grow
th
E
xecution
People
ORGA
NIC RE
V
ENUE GRO
W
TH
OPER
A
TING P
ROF
I
T M
A
RGIN
E
A
R
NINGS P
ER SH
A
R
E GRO
W
TH
Gr
o
w
in
g f
as
te
r is t
he p
r
im
ar
y dr
i
v
e
r of un
lo
ck
in
g v
al
ue
cr
e
ati
on f
or th
e G
ro
up
.
Str
o
ng
er e
xe
cu
ti
on i
s th
e se
c
on
d key p
r
io
r
i
t
y f
or t
he G
r
ou
p
an
d w
il
l dr
i
v
e hi
gh
er m
ar
gi
ns
.
Str
o
ng m
ar
g
in
s w
il
l co
nv
er
t re
v
en
ue g
r
ow
th int
o
ear
nings gro
w
th.
STR
A
TEGY
STR
A
TEGY
STR
A
TEGY
F
Y2022 PROGRESS
In F
Y
2
0
2
2 w
e de
l
i
ve
r
ed o
r
ga
nic r
e
v
en
ue gr
o
w
th in a
ll f
our
qua
r
ter
s of t
he y
e
ar an
d f
ul
l y
ea
r gr
o
w
t
h of +
3
.
8
%
. Gr
o
w
th
acc
el
er
ated in H
2 v
s H1 to +
4
.
1
%
.
F
Y2022 PROGRESS
In F
Y
2
0
2
2 m
ar
gi
n w
as r
e
s
il
ie
nt at 16.
3
%, a
mi
ds
t a c
ha
ll
en
gin
g
ma
cr
o en
v
ir
o
nm
ent
, w
hi
le c
ont
in
uin
g to in
v
es
t i
n fu
t
ur
e
grow
th.
F
Y2022 PROGRESS
In F
Y
2
0
2
2 w
e de
l
i
ve
r
ed s
tr
o
ng E
P
S gro
w
th of 17
.
8
%
, dr
iv
en
by o
pe
r
a
tin
g pr
o
fi
t gr
o
w
th, a r
e
du
c
ti
on i
n th
e ef
f
ec
t
i
v
e
he
ad
li
ne t
a
x r
a
te, an
d th
e b
en
ef
it f
r
om t
he o
ng
oi
ng s
ha
r
e
buy
back programme.
PERFORMA
NCE
PERFORMA
NCE
PERFORMA
NCE
LINKED TO
REMUNER
A
TION
LINKED TO
REMUNER
A
TION
LINKED TO
REMUNER
A
TION
(2.2)
%
(1.0)%
3.0
%
3.4%
3.8%
FY2021
FY2020
FY2019
FY2018
FY2022
15.5%
12.8%
17.1%
16.6%
16.3%
FY2021
FY2020
FY2019
FY2018
FY2022
19.3%
(2
7
.
4)%
11.0%
11.7%
17.8%
FY2021
FY2020
FY2019
FY2018
FY2022
Oper
ational tar
get
s
Our op
er
a
tion
al t
ar
get
s a
re al
s
o al
igne
d to our t
hre
e Smit
hs Val
ue Eng
ine p
ri
or
iti
es
.
Al
ter
na
ti
ve P
er
for
m
ance M
ea
sur
e
s (
A
P
Ms
) and ke
y pe
r
for
man
ce in
dic
ato
r
s ar
e def
in
ed i
n note 2
9 to th
e f
inan
cia
l s
tate
ment
s
.
MEDIUM-
TERM
TA
R
G
E
T
15-17%
MEDIUM-
TERM
TA
R
G
E
T
100%+
MEDIUM-
TERM
TA
R
G
E
T
30%+
MEDIUM-
TERM
TA
R
G
E
T
Net Zero
Scope 1 &
2 emis
sions
by 20
40
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P
11
P
11
P
11
P
24
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
22
RE
T
UR
N ON CA
P
ITAL EMP
LOY
ED (R
OCE
)
OPER
ATING CA
SH CON
V
ERSION
GROSS VIT
A
LIT
Y
GREENHOUSE GA
S REDUCTION
Mon
it
or
i
ng o
ur r
et
ur
n o
n c
ap
it
al a
c
t
s a
s a di
sc
ip
li
ne o
n bo
th
or
ga
ni
c an
d in
or
g
ani
c in
ve
s
t
me
nt to dr
i
v
e m
ax
im
um v
a
lu
e
fr
o
m ou
r gr
o
w
t
h
.
Mai
nt
ain
in
g ou
r st
r
on
g tr
ack r
e
co
r
d of c
as
h co
nv
er
sio
n is a
key c
om
po
ne
nt of o
ur r
ob
us
t f
i
nan
ci
al f
r
a
me
w
or
k.
Gr
os
s V
it
al
it
y me
as
ur
e
s th
e r
ev
en
ue c
on
tr
i
bu
ti
on of
pr
o
duc
ts l
a
unc
he
d in t
he l
ast f
i
v
e y
ea
r
s
. Im
pr
o
ve
d ne
w
pr
o
duc
t dev
el
op
me
nt an
d co
mm
er
c
ial
i
s
ati
on i
s a ke
y
component of our
grow
th strategy.
Me
eti
ng o
ur c
om
mi
tm
ent to d
el
i
v
er N
et Ze
ro S
c
op
e 1 &
2 GH
G emi
s
si
on
s b
y 2
0
4
0 is a fu
nd
am
ent
a
l pa
r
t of our
sustainabilit
y str
ategy. Pe
r
for
mance data is
normal
ised to
revenu
e.
STR
A
TEGY
STR
A
TEGY
STR
A
TEGY
STR
A
TEGY
F
Y2022 PROGRESS
In F
Y
2
0
2
2 R
O
CE in
cr
e
as
e
d +
3
0
bp
s to 14.
2
% a
s hi
gh
pr
of
i
ta
bi
l
it
y mor
e t
han o
f
f
s
et in
v
e
st
me
nt in w
o
r
ki
ng c
a
pi
t
al
.
F
Y2022 PROGRESS
In F
Y
20
2
2 we deliver
ed solid oper
ating cash conver
sion
of 8
0
% w
h
ile n
a
v
ig
ati
ng s
up
ply c
ha
in d
isr
upti
on a
nd t
he
as
s
oc
ia
ted i
nv
e
s
tm
ent i
n wo
r
k
in
g c
ap
it
al
.
F
Y2022 PROGRESS
In F
Y
2
0
2
2 r
e
ve
nu
e fr
o
m ne
w p
r
od
uc
t
s i
nc
re
a
se
d to 31% of
total revenue, demonstr
ating the success of our conti
nued
inv
e
s
tm
ent i
n R&D an
d co
mm
er
c
ial
i
s
ati
on o
f ne
w p
ro
du
c
t
s
.
F
Y2022 PROGRESS
In F
Y
2
0
2
2 w
e ac
hi
ev
e
d a r
ed
uc
t
io
n in S
co
pe 1 & 2 e
mi
s
si
on
s
of (
7
.2
)
% n
or
mal
is
e
d to r
ev
en
ue
. A
b
so
lu
te S
c
op
e 1 & 2
emi
s
si
on
s fe
ll b
y (1.
1)
%.
PERFORMA
NCE
PERFORMA
NCE
PERFORMA
NCE
PERFORMA
NCE
LINKED TO
REMUNER
A
TION
LINKED TO
REMUNER
A
TION
LINKED TO
REMUNER
A
TION
13.9%
12.8%
15.7%
15.3%
14.2%
FY2021
FY2020
FY2019
FY2018
FY2022
129%
112%
74%
104%
80%
FY2021
FY2020
FY2019
FY2018
FY2022
31%
25%
FY2022
FY2021
(
7
.2)%
FY2022
Gr
o
s
s V
i
t
al
i
t
y i
s a n
ew K
PI in F
Y
2
0
2
2
F
Y2
0
2
1 da
t
a w
as r
e
s
t
at
ed i
n F
Y
2
0
2
2 us
i
ng t
h
e ba
s
is
of p
r
ep
a
r
at
i
on d
e
s
cr
i
b
ed o
n p
a
ge 2
9. Hi
s
to
r
ic S
c
o
pe
1 & 2 da
ta i
s t
he
r
ef
or
e n
o
t co
mp
a
r
a
bl
e
.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
23
71
73
72
71
72
FY2021
FY2020
FY2019
FY2018
FY2022
24%
23%
FY2022
FY2021
MEDIUM-
TERM
TA
R
G
E
T
A ze
ro harm
wor
k
pl
ace
MEDIUM-
TERM
TA
R
G
E
T
Uppe
r
quar
tile
MEDIUM-TERM
TARGET
30
% by
the end
of
F
Y
2
024
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P
24
P
24
P
24
RECO
RDA
BL
E INCID
ENT R
A
TE
MY S
A
Y SURV
E
Y ENGAGEMENT SC
ORE
DIVE
RS
ITY
Our c
om
mi
tm
ent t
o our p
e
op
le s
t
ar
t
s w
it
h kee
pi
ng u
s
al
l s
afe a
nd h
ea
lt
hy. T
hi
s is o
ur e
s
s
ent
ial f
ou
nd
ati
on a
nd
num
be
r on
e fo
cu
s
. Ou
r key s
a
fet
y met
r
ic i
s Re
cor
d
ab
le
Inc
id
ent R
ate (
R
IR
) p
er 10
0 c
ol
le
a
gu
es
.
En
ga
gi
ng o
ur p
eo
pl
e is ke
y to t
he s
ucc
e
s
s of ou
r s
tr
ateg
y.
We ha
ve b
e
en t
r
a
ck
in
g em
pl
oy
e
e en
ga
ge
me
nt on a r
ang
e of
imp
or
t
ant c
ul
tur
al me
as
ur
e
s si
nc
e 2
017
.
We ar
e fo
c
us
ed o
n pr
o
a
c
ti
v
el
y in
cr
e
as
ing t
he n
um
be
r of
wo
me
n in l
ea
de
r
sh
ip r
o
le
s at S
mi
th
s
, w
it
h ou
r me
as
ur
e
be
in
g pe
rc
ent
a
ge o
f se
ni
or l
ea
de
r
s
hip p
os
i
tio
n
s ta
ken b
y
females
.
STR
A
TEGY
STR
A
TEGY
STR
A
TEGY
F
Y2022 PROGRESS
Gr
ou
p RI
R in F
Y
2
0
2
2 w
a
s 0.
5
4, 15% ab
o
ve F
Y
2
0
2
1, but
con
tin
ue
d to t
r
a
ck b
el
ow t
he i
nd
us
tr
y a
ve
r
a
ge a
nd i
n th
e top
quar
tile of industr
y per
for
mance.
F
Y2022 PROGRESS
Our o
v
er
all g
lo
ba
l en
ga
ge
me
nt s
co
r
e re
ma
in
ed s
t
ab
le
in F
Y
2
0
2
2 an
d w
e co
nti
nu
ed to h
a
ve a v
er
y hi
gh s
ur
v
ey
re
s
po
ns
e r
ate of 8
2
%
.
F
Y2022 PROGRESS
We ma
de p
r
og
r
es
s d
ur
i
ng F
Y
2
0
2
2 t
o re
a
ch 2
4% se
ni
or
leader
ship positions taken by females.
PERFORMA
NCE
PERFORMA
NCE
PERFORMA
NCE
0.47
0.35
0.50
0.44
0.54
FY2021
FY2020
FY2019
FY2018
FY2022
Pe
r
ce
nt
a
ge o
f s
en
io
r l
ea
d
er
shi
p po
s
it
i
on
s t
ak
en b
y
fe
ma
le
s i
s a n
e
w K
P
I in F
Y
2
0
2
2
.
Environment, S
ocial and Governance (E
SG) per
for
mance
is at th
e ver
y centr
e of ou
r Pur
p
os
e, an
d we ar
e commi
t
ted
to sustainabil
it
y leader
ship.
We bel
ie
v
e in doi
ng b
usin
e
ss r
e
sp
on
sib
ly, the r
ig
ht w
ay e
ve
r
y day,
and t
r
an
sl
at
ing o
ur P
ur
p
os
e and V
alue
s into p
r
a
c
tic
al a
c
tio
n tha
t
mob
il
is
es S
mi
ths s
tr
e
ng
ths to i
mpr
o
ve o
ur w
or
l
d. We ar
e pi
on
eer
ing
pro
g
ress
t
ow
ards a sustainable future through our products
,
se
r
vi
ce
s, o
pe
r
at
ion
s
, and o
ur pe
op
le – pu
r
sui
ng e
xcell
enc
e in
e
v
e
r
y
t
h
i
n
g
w
e do. We a
re c
omm
it
t
ing to am
bi
tio
us t
ar
get
s a
nd t
ak
ing
tan
gib
le ac
t
ion to d
el
i
ve
r v
alu
e for a
ll ou
r st
akeh
ol
de
r
s.
Se
e ou
r Su
st
ain
abi
li
t
y at Smit
hs Rep
or
t for f
ur
the
r info
r
mat
ion
on our E
SG f
r
am
ew
or
k, pr
i
or
i
tie
s an
d p
er
for
ma
nce
.
Our ES
G fr
amework
We dis
tin
gui
sh ten f
oun
dati
ona
l E
S
G ele
ment
s t
hat ar
e e
s
s
entia
l to our s
ucce
s
s
.
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S
U
ST
AI
NAB
I
LI
T
Y
A
T SM
I
THS
SUSTAINABILITY AT SMITHS
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
24
Deliver
ing
Net Zero GHG
Developing
tal
ent
Respec
ting natur
al
resourc
es
Improv
ing safet
y
,
health and w
ell-being
Contr
ibu
ting to our
communities
Pr
omoting di
ver
sit
y,
equit
y and inclusion
ENV
IRONMENT
SOCI
A
L
GOV
ERN
A
NCE
Managing r
isk and
maintaining
str
ong an
d
ef
fec
ti
ve control
s
Behav
ing ethic
ally
and legally
Ef
fec
ti
ve long-ter
m
decision making and
tr
anspar
enc
y
Commercial
ising
high-value
green t
echnolog
ies
IMPROVING SAFETY,
HEALTH AND WELL-BEING
Our co
mmit
ment to o
ur pe
op
le s
tar
t
s w
ith keep
ing u
s
all s
af
e and h
ealt
hy. This is o
ur e
ss
enti
al f
ound
atio
n
and nu
mbe
r one f
oc
us
. We str
i
ve to alw
ay
s im
pro
ve
and b
e pr
oac
tive, in
clu
din
g de
sig
ning f
or s
af
et
y;
str
eng
the
ning o
ur s
afe
t
y cu
lture e
ver
y day; a
nd
wor
k
ing to i
mpr
ove ou
r coll
ea
gue
s’ li
ves i
n the r
ound
.
We ar
e tha
nk
fu
l for t
hos
e w
h
o ca
me b
efor
e us a
nd
hel
pe
d e
s
ta
bl
ish r
ob
us
t s
afet
y cult
ur
e
s at our s
ite
s th
at
we w
or
k to c
onti
nuo
usl
y re
ne
w, st
re
ng
the
n and c
onn
ec
t
.
We und
er
s
t
and t
hat s
tr
on
g s
afet
y cult
ur
e is f
und
am
ent
all
y
abo
ut ke
epin
g s
afet
y per
sona
l and m
us
t r
efl
ec
t
, an
d
resp
ect
, our divers
e and global organisation.
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Safety
P
31
DEVELOPING TALENT
Our organis
ational commitment is to
ens
ure th
at al
l our col
le
agu
es h
ave op
po
r
tu
niti
es to
develop their skill
s and reach their full potential
.
Smi
th
s col
le
agu
e
s hav
e ac
ce
ss to t
r
ai
ning a
nd r
e
so
ur
ce
s
to und
er
take th
eir r
ol
e
s s
afely, ef
fe
c
ti
v
ely, and in l
in
e w
it
h
our p
ol
ici
es
. C
ol
le
agu
e
s al
s
o ha
ve a
cce
s
s to a de
ve
lop
ing
r
an
ge of p
er
s
on
al an
d sk
ill
s gro
w
th re
s
our
ce
s a
s the
y
pr
og
re
s
s in th
eir c
ar
e
er
s i
ncl
udi
ng sp
ec
ial
is
t te
chni
c
al
and f
un
c
tio
nal a
nd ex
ter
nal
ly ac
cr
edi
ted p
r
ogr
amme
s
.
We ar
e cur
r
ent
ly h
onin
g our l
ea
der
ship pr
o
gr
a
mme
s to
bet
te
r sup
por
t bu
sin
es
s n
ee
ds a
nd s
o that o
ur le
ad
er
s
ca
n mo
re ef
fec
ti
v
ely s
upp
or
t th
eir tea
ms
.
READ MORE
Sustainability at Smiths report
COMMERCIALISING HIGH-VALUE
GREEN TECHNOLOGIES
Among our biggest oppor
tunities to de
liver
st
akeho
lde
r v
alue i
s r
unn
ing ou
r bus
ine
s
se
s we
ll an
d
dri
ving grow
th through deliver
y of top commercial
progr
ammes that enable sust
ainabilit
y per
fo
rmance
for and through our customers.
We supp
or
t cu
sto
me
r
s and i
ndu
s
tr
ie
s th
at ar
e le
ad
ing t
he
w
ay to a su
s
ta
inab
le f
ut
ur
e by d
ev
el
opi
ng an
d imp
lem
enti
ng
gr
een te
ch
nol
og
y s
ol
uti
on
s ta
r
geti
ng cl
im
ate r
is
k, e
ner
g
y
tr
ansition and nex
t gener
ation, eff
icient infra
str
uc
ture.
Our un
iqu
e eng
ine
er
i
ng c
ap
abi
li
tie
s an
d tec
hn
olo
gie
s
pos
it
ion u
s st
r
ong
ly to sup
po
r
t cus
tom
er
s o
n this v
i
t
al
jour
ney an
d we a
r
e ta
rg
etin
g ne
w pr
o
duc
t d
ev
el
opm
ent
opp
or
tun
iti
es i
n gr
ow
th ma
r
ket
s w
her
e o
ur tec
hno
lo
g
y and
capabil
ities of
fer dif
ferentiated value through impro
ved
sustainabilit
y per
formance.
Devel
oping and commercial
ising sust
ainabilit
y-adv
antag
ed
pr
od
uc
t
s an
d se
r
vi
ce
s w
il
l enab
le S
mit
hs to h
av
e an e
ven
gr
eater p
os
iti
v
e im
pa
c
t on gl
ob
al en
v
ir
onm
ent
al pr
i
or
i
tie
s
than w
e co
ul
d ach
iev
e on o
ur o
w
n.
READ MORE
Sustainability at Smiths report
DELIVERING NET ZERO GHG
We have a succe
s
sf
ul r
ecor
d of d
eli
ve
r
ing
reduc
tions in our operational GHG emissions.
We are now t
ak
in
g big s
tep
s for
w
ar
d.
In F
Y
2
0
2
2, w
e co
mmi
t
ted to a
mbi
ti
ous N
et Zer
o t
ar
get
s t
hat
ali
gn S
mit
hs w
i
th th
e UN’s cr
iti
c
al gl
ob
al cl
im
ate obj
ec
ti
v
e
s:
Net Zer
o em
is
si
on
s fr
om o
ur op
er
ation
s (
S
cop
e 1 & 2
) b
y
2
0
4
0 a
nd N
et Zer
o emi
s
sio
ns f
r
om ou
r sup
ply c
hain a
nd
pr
od
uc
t
s in u
se (
S
c
ope 3
) b
y 2
0
5
0.
READ MORE
Environment
P
30
RESPECTING NATURAL
RESOURCES
Natur
al res
our
ces a
re fi
nite, a
nd we
believe that all busines
se
s have a responsib
ilit
y
to us
e them r
es
pe
c
t
ful
ly and s
a
fely – min
imi
sing
consumption and preventing pollution.
Our l
ong
s
ta
ndin
g co
mmi
tme
nt
s to us
e ene
r
g
y ef
f
ic
ient
ly
and mi
nimi
se w
aste ar
e in
cr
e
asin
gly o
f inter
e
st a
nd v
al
ue
to our c
us
tome
r
s as t
he
y al
so se
ek to m
ana
ge th
eir o
w
n
env
ir
o
nme
nta
l foot
pr
i
nt
s.
READ MORE
Environment
P
30
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
25
EN
V
IR
O
NMEN
T
SO
C
IAL
CONTRIBUTING TO
OUR COMMUNITIES
We aim to imp
rove o
ur wo
r
ld b
y
contributing posi
tively to our communities
and societ
y in general
.
Smi
th
s pr
od
uc
t
s an
d se
r
v
ice
s sup
po
r
t cr
it
ic
al gl
ob
al
indu
s
tr
ie
s w
h
er
e we a
re p
ion
ee
r
in
g pr
og
re
s
s in
safet
y, e
f
ficienc
y
, and environmental per
formance.
Our o
per
ation
s ar
ou
nd th
e wo
r
l
d pl
ay a b
en
ef
ici
al
role in local economies through job creation and skills
de
vel
op
ment; p
r
oc
ur
eme
nt and g
ene
r
at
ing t
a
x re
v
enu
es;
and oper
ating safely, environmental
ly resp
onsibly and
ethic
a
lly. We al
s
o en
ga
ge di
re
c
tly t
hr
ou
gh f
und
r
ai
sin
g,
char
itable gi
vin
g and education initiativ
es
.
READ MORE
Sustainability at Smiths report
BEHAVING ETHICALLY
AND LEGALLY
Beh
av
ing e
thic
al
ly and w
it
h integ
r
it
y i
s a
fun
dam
ent
al p
ar
t of our Valu
es
. We al
s
o ope
r
ate in
som
e hig
hly reg
ul
ate
d mar
ket
s an
d se
c
tor
s w
hic
h
req
uire s
tr
ic
t adher
ence to l
oc
al an
d inter
n
atio
nal
industr
y regulations.
We hav
e a mat
ur
e go
ve
r
na
nce en
v
ir
on
ment w
i
th ex
ac
t
ing
st
an
dar
d
s, r
o
bus
t di
li
gen
ce pr
o
ce
s
se
s an
d a pr
o
ac
ti
v
e
man
age
ment a
pp
ro
ac
h. A
nd we s
ee
k to wo
r
k w
it
h par
tn
er
s
w
ho su
ppo
r
t our Val
ue
s to mini
mis
e r
is
k an
d ma
xim
is
e
our p
osi
ti
v
e so
ci
al an
d env
i
ro
nme
nta
l imp
ac
t
.
READ MORE
Sustainability at Smiths report
MANAGING RISK AND
MAINTAINING STRONG
AND EFFECTIVE CONTROLS
Continual as
ses
sment and manage
ment of risk
s,
and a
s
sur
an
ce thr
oug
h inter
n
al cont
rol
s, is a
n
integ
r
al p
ar
t of day-
to
-
day o
per
ations a
t Smit
hs
.
Our ent
erpr
ise r
isk management
(ERM) pro
cess suppor
ts
ope
n com
muni
c
atio
n on r
i
sk be
t
w
ee
n the B
o
ar
d an
d the
Au
dit & R
isk C
om
mit
tee, th
e E
xec
ut
i
ve C
om
mit
tee, our
di
v
isi
on
s, a
nd si
te
s, a
nd en
su
re
s th
at r
is
k is ap
pr
op
r
iate
ly
man
age
d to de
li
v
er o
ur bu
sin
es
s o
bje
c
ti
v
es
. E
S
G m
at
ter
s
ar
e fu
lly i
ntegr
ated into th
e ER
M pr
oc
es
s a
nd ar
e id
enti
f
ie
d
and m
ana
ge
d in th
e s
ame w
a
y as ot
her G
r
oup r
i
sk
s
.
READ MORE
Risk management
P
46
EFFECTIVE LONG-TERM
DECISION MAKING
AND TRANSPARENCY
Goo
d qua
lit
y
, ethi
ca
l and ef
fec
ti
ve d
eci
sio
n-
making builds sus
tainab
le busines
se
s and
enab
le
s the
m to cre
ate lo
ng
-ter
m v
alu
e fo
r
all stakeholders
.
Our o
ve
r
al
l go
v
er
na
nce f
r
a
me
wo
r
k pr
o
v
id
es t
he s
tr
u
c
tur
e
s
and s
y
s
tem
s thr
o
ugh w
hi
ch o
ur s
tr
ate
gie
s an
d ob
jec
t
i
ve
s
ar
e set a
nd ac
hie
v
ed
, ho
w r
is
k is mo
nito
r
ed an
d ma
nag
ed
v
ia cont
r
ol
s
, an
d ho
w ou
r pe
r
for
man
ce is m
ana
ge
d an
d
opti
mis
ed w
i
th ap
pr
op
r
iate o
v
er
si
ght f
ro
m th
e Bo
ar
d.
READ MORE
Governance
P
56
PROMOTING DIVERSITY,
EQUITY AND INCLUSION
Our te
am of co
lle
agu
es r
epr
es
en
ts d
ozen
s
of nations, speaking a multiplicit
y of language
s,
and embody
ing many dif
ferent perspe
c
tives
. We
str
ive
to emb
r
ace th
es
e dif
feren
ces a
nd pr
om
ote ac
ti
ons a
nd
behaviour
s that will deliver an inclusive and suppor
tive
work envir
onment where ever
y member of
the Smiths
team c
an b
e the b
es
t ve
rs
ion o
f them
s
elve
s.
We kn
ow th
at w
he
n col
le
ag
ue
s fee
l inc
lud
ed
, v
alu
ed
, and
enc
our
aged to m
ake a me
anin
gf
ul c
ontr
ibuti
on
, Smi
th
s w
ill
thr
i
v
e as w
e co
ntinu
e to at
tr
ac
t and r
et
ain t
he di
v
er
s
e t
ale
nt
that w
e ne
ed
.
READ MORE
People
P
33
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
26
SO
C
IAL
continued
GOV
ERN
A
NCE
Gro
w
th
Del
i
ve
r su
st
a
in
ab
le g
row
th by t
a
rg
et
in
g hi
gh
-
gr
ow
th mar
ke
t
s w
he
re we c
a
n
leverage our unique capabilitie
s to dev
elop and deliver differentiated technolo
gy
solutions which help solve
some of the world’
s
bigges
t challenges for our
customers and global communities
–
P
r
io
r
it
is
e ne
w pr
o
duc
t d
ev
el
opm
ent (
NP
D) pr
o
gr
am
me
s th
at del
i
v
er th
e sus
t
ain
abi
li
t
y
per
for
mance o
ur cu
s
tome
r
s ne
ed a
nd w
ant
. D
ev
el
op an
d de
sig
nate top s
us
t
aina
ble
gr
ow
th NP
D pr
og
r
am
me
s in e
ach d
i
v
isi
on th
at cont
r
ibu
te si
gnif
i
ca
ntly to d
i
v
isi
ona
l
re
v
enue g
r
ow
th an
d w
her
e co
mme
rc
ial s
ucce
s
s w
il
l de
li
v
er co
r
r
es
po
ndi
ng
sustainabilit
y per
formance benefit
s, such as energ
y eff
icienc
y
, GHG reduction
,
and renew
able energ
y pro
duction
–
Inte
gr
a
te env
ir
o
nme
nta
l sus
t
ain
abil
i
t
y m
etr
i
c
s into ou
r NPD p
r
oce
s
s
es to e
nab
le
our o
w
n Net Ze
ro d
el
i
ve
r
y, and our c
us
tome
r
s’ and th
e ind
us
tr
i
es w
e s
er
ve
READ MORE
about Growth
P
12
E
xec
u
ti
o
n
Del
i
ve
r our c
omm
it
me
nt
s t
o Ne
t Ze
ro S
ci
en
ce
-B
a
s
ed T
ar
ge
t
s (
SB
T
s)
and furt
her improve
the environmental perf
ormance of our
oper
ations
–
Del
iv
er oper
ational target
s for renew
able energ
y,
w
aste gener
ation, water use
and packagi
ng
–
D
el
i
ve
r Net Zer
o G
HG emi
s
sio
ns c
ommi
tm
ent
s fo
r S
cop
e
s 1
, 2 and 3 a
nd a
s
so
ciate
d
SBT
s through energy ef
f
icienc
y and renew
able energ
y, i
ncluding optimising produc
t
design an
d our supply chains
READ MORE
about Execution
P
13
People
Del
i
ve
r fo
r pe
op
le
, en
su
r
in
g th
at we g
ro
w ou
r bu
si
ne
s
s in l
ine w
i
th o
ur Va
lu
es
,
our L
e
ad
er
sh
ip B
eh
av
io
ur
s
, an
d pl
a
n f
or th
e l
ong
-t
er
m f
utu
re o
f Smi
th
s
–
S
us
t
ain an
d v
it
al
is
e ou
r s
afet
y cultu
re a
nd p
er
for
m
ance
–
D
ev
el
op an
d emp
ow
er S
mi
ths t
al
ent fo
r the f
u
tur
e
–
E
mb
ed an i
ncl
usi
v
e an
d di
ve
r
s
e cul
tur
e an
d inc
re
as
e ge
nd
er di
v
er
s
it
y
READ MORE
about People
P
13
Our E
S
G s
tr
ategic pr
io
r
itie
s
Our su
s
tai
nab
ili
t
y s
tr
ate
g
y fol
low
s ou
r Smit
hs Valu
e Eng
ine pr
i
or
iti
es – G
row
th, E
xe
cuti
on an
d Peo
ple
.
W
it
hin th
is f
r
am
ew
or
k, w
e foc
us o
n our hi
ghe
s
t-imp
ac
t o
ppo
r
tuni
tie
s to ac
cele
r
ate p
er
for
m
anc
e and c
re
ate v
al
ue w
it
h sp
eci
f
ic ac
t
ion
s
that w
il
l le
ad to c
onc
re
te and m
ea
sur
able r
e
sul
t
s.
Remuner
ation
T
o alig
n de
cis
ion
-m
ak
ing an
d o
w
ner
ship of our E
SG go
al
s, S
S
E
metr
ics w
i
ll fo
r
m pa
r
t of the S
mit
hs an
nua
l and l
ong
-ter
m i
nce
nti
ve
pl
an
s for F
Y
2
0
2
3. A GHG r
e
duc
t
ion m
etr
i
c for
m
ed p
ar
t of ou
r lon
g-
ter
m in
centi
v
e pl
a
n in F
Y
2
0
2
2
.
READ MORE
Remuneration & People Committee Report
P
75
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
27
Our e
nabl
ing c
ultur
e
At S
mit
hs o
ur cul
tur
e em
po
w
er
s an
d en
abl
es o
ur pe
op
le to de
li
v
er
on our P
ur
pos
e. L
i
v
in
g our f
i
v
e Valu
es e
v
er
y da
y, in each a
c
tio
n and
dec
is
ion t
hat w
e ta
ke, make
s Sm
ith
s a pl
a
ce w
he
re w
e ar
e h
app
y
and p
ro
ud to w
or
k
. I
t’s wh
at make
s us r
el
ia
ble
, tr
u
st
wo
r
thy, and
v
alu
ed p
ar
tne
r
s for o
ur cu
s
tome
r
s an
d sup
pl
ier
s and sup
po
r
ts th
e
lon
g-te
r
m su
st
ain
abi
li
t
y and suc
ce
ss o
f our b
usi
ne
s
s mo
del
.
Th
e Sm
ith
s L
ea
der
s
hip B
eh
av
io
ur
s in
cor
por
ate o
ur Val
ue
s
and a
ppl
y the
m to del
i
ve
r
in
g for al
l s
ta
keho
ld
er
s
. T
he s
e
ven
Le
ad
er
sh
ip Be
ha
v
iou
r
s de
s
cr
ib
e ho
w w
e wo
r
k w
it
h one a
not
her
,
dem
on
st
r
ate o
ur Valu
e
s, a
nd cr
e
ate v
alu
e thr
o
ugh o
ur ac
ti
on
s.
Imp
or
tant
ly, the Le
ad
er
s
hip B
eha
v
io
ur
s ap
ply to e
v
er
yo
ne at
Smi
th
s – fr
om t
he sh
op f
lo
or to s
eni
or exe
cu
ti
v
e
s. W
h
atev
er r
ol
e
we p
l
ay, we c
an al
l de
mon
s
tr
a
te and d
ev
elo
p our L
e
ade
r
sh
ip
Beh
av
i
our
s to impr
ov
e an
d del
i
ve
r as a te
am
, de
vel
opi
ng
and s
har
i
ng ou
r ta
lent
s to s
upp
or
t ea
ch oth
er an
d imp
ro
v
e
our tomorrow.
Our g
oa
l is to us
e th
e Le
ad
er
s
hip B
eha
v
io
ur
s to in
spi
re a
nd he
lp
st
re
ng
the
n and s
hif
t the S
mit
hs c
ult
ur
e to be e
ve
n mor
e d
y
n
amic
,
incl
usi
v
e, an
d fo
cu
se
d on d
el
i
ver
ing re
s
ult
s th
at cr
e
ate v
alu
e for
our p
eo
ple
, cus
tom
er
s a
nd ot
her s
t
akeh
old
er
s
.
We hav
e be
en t
r
ac
ki
ng en
ga
gem
ent on a r
ange o
f imp
or
tant
cultur
al me
asur
es inclu
ding safet
y
, ethics
, belon
ging, inclus
iv
it
y
,
lea
de
r
shi
p, and s
er
v
ic
e sinc
e 2
01
7
. Our ov
er
a
ll gl
ob
al en
ga
gem
ent
sc
or
e re
mai
ne
d st
ab
le fo
r May 2
0
2
2 a
nd N
ov
emb
er 2
0
21,
jus
t be
lo
w th
e ben
chm
ar
k p
ro
v
id
ed b
y ou
r sur
v
ey p
ar
tne
r
.
We conti
nue
d to ha
ve a v
er
y hi
gh sur
v
ey r
e
sp
on
se r
ate of 82
% i
n
May 2
0
2
2 w
i
th n
ear
ly 1
9
,0
0
0 co
mme
nt
s sub
mit
ted. S
ee o
ur K
P
Is
on p
age 2
3.
We wi
ll co
ntin
ue to us
e th
e sur
v
ey i
n a tr
a
nsp
ar
ent a
nd m
etic
ulo
us
w
ay to su
r
fac
e is
su
es a
nd m
or
e pr
ec
is
ely u
nde
r
s
t
and w
h
at we
ar
e doi
ng w
ell a
nd w
h
er
e we n
ee
d to do b
et
ter
. We al
s
o inten
d
to fl
ex th
e que
s
tio
ns i
n fu
tur
e s
ur
ve
y
s to tes
t en
ga
gem
ent
w
ith
in fo
cus a
re
as a
nd to en
su
re t
hat w
e cont
inu
e to wo
r
k an
d
communicate effe
cti
vely.
Ethic
s
Beh
av
in
g eth
ic
al
ly an
d w
ith i
ntegr
i
t
y is a fun
dam
ent
al p
ar
t of our
Valu
es
. O
ur Co
de of B
usi
ne
s
s Ethi
c
s gui
de
s Sm
ith
s co
lle
ag
ue
s
to re
co
gni
se an
d de
al ap
pr
op
r
iate
ly w
it
h leg
al an
d ethi
c
al is
s
ue
s
that t
he
y ma
y enc
ounter i
n the c
our
s
e of t
heir w
or
k. T
hi
s is
sup
ple
mente
d by a s
uite o
f pol
ic
ie
s an
d pr
oc
edu
re
s r
el
at
ing to
specif
ic ethics and compliance matter
s.
Our c
oll
ea
gue
s an
d bu
sin
es
s p
ar
tne
r
s ar
e ex
p
ec
te
d to re
po
r
t any
ac
ti
v
i
t
y – w
h
eth
er in ou
r bus
ine
s
s or t
ho
se of o
ur p
ar
tner
s – that
the
y co
nsi
der m
ay b
e in br
e
ach o
f our et
hic
s c
od
es a
nd p
ol
ici
es
.
Both o
ur co
ll
ea
gue
s an
d pa
r
tner
s have a
cce
s
s to our c
onf
id
enti
al
‘Sp
ea
k Ou
t’ r
ep
or
tin
g hotl
in
e, w
hi
ch is a
cce
s
sib
le 2
4 hou
r
s a da
y,
se
ve
n da
ys a w
e
ek
. Rep
or
ts c
a
n be m
ade a
no
ny
mo
us
ly.
OUR VALUES
SMITHS LEADERSHIP BEHAVIOURS
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
28
E
S
G go
ver
nance
and o
ver
sight mo
del
Smit
hs E
xc
elle
nce S
ys
te
m
Science, Sustainabilit
y &
E
xcelle
nce C
ommi
t
tee
Remuneration &
People Committee
Nomination &
Governance Commit
tee
Audit &
Ris
k Co
mmit
te
e
NPD management
– cu
s
to
me
r v
al
ue a
nd
sustainab
le design
Energy T
eam
– energy
efficienc
y and
GHG deliver
y
HSE T
echnical
Comm
itte
e
– s
af
et
y and
environment
Busines
s
Ethic
s
Council
s
HR Business
Par
tner
s
Divi
sion Commercial
T
eams –
T
echnology/
Sustainable design
ESG
Leader
ship
Te
a
m
s
Group HSE
Group
Ethics and
Compliance
HR Leadership
Te
a
m
Company
Secretar
y
Director of
Internal Audit
and Risk
Div
isional Presidents
Chief Sustaina
bilit
y
Of
ficer
Chief People Of
ficer
Group Gener
al
Couns
el
Smiths Board
E
xecu
ti
ve Co
mmi
t
tee
E
S
G go
ver
nance
and o
ver
sight
Th
e Sm
ith
s Bo
ar
d of D
ir
ec
to
r
s an
d E
xe
cu
ti
v
e Co
mmi
t
tee
hav
e ult
imate r
e
sp
on
sib
ili
t
y for Smi
th
s E
S
G pe
r
for
man
ce an
d
as
s
oci
ated g
ov
er
n
anc
e and o
v
er
si
ght
. T
he S
ci
enc
e, Su
s
tai
nab
il
it
y
& E
xcel
le
nce (
S
S
E
) C
om
mit
tee of the B
o
ar
d, c
hair
e
d by D
am
e
Ann Dow
ling, is r
e
sp
on
sibl
e for o
v
er
s
ee
ing t
he Gr
o
up’
s app
r
oa
ch
to sc
ienc
e, su
s
tai
nab
il
it
y
, and e
xcel
len
ce. T
h
e ov
er
s
ight
cover
s R&D
, commercialis
ation and sustainabili
t
y str
ategies
,
incl
udi
ng th
e imp
ac
t of c
l
imate c
han
ge an
d r
el
ate
d metr
ics
and
ta
rg
et
s
. The Remuneration & People Committee over
s
ees
our ap
pr
o
ach to p
eo
pl
e and c
ult
ur
e mat
te
r
s
, and t
he A
udi
t &
Ris
k Co
mmi
t
tee o
v
er
s
ee
s ou
r r
is
k man
age
ment p
r
oc
es
s
e
s
and s
y
s
tem
s of inter
nal cont
ro
l
. T
he N
omin
ati
on & G
ov
er
n
ance
Co
mmi
t
tee ke
eps t
he Gr
o
up’
s high
-
lev
el g
ov
er
n
anc
e fr
ame
wo
r
k
und
er r
ev
i
ew to e
nsu
re a
pp
ro
pr
i
ate guid
anc
e and o
v
er
si
ght is
maint
ain
ed
. Su
s
tai
nab
il
it
y str
ateg
y and d
el
i
ve
r
y ar
e le
d by m
emb
er
s
of the S
mi
ths E
xecu
ti
v
e Co
mmi
t
tee: o
ur Chie
f Sus
t
ain
abi
li
t
y
Of
fi
cer; Chief Pe
opl
e O
f
f
ice
r
; Gr
o
up Ge
ner
al Co
uns
el
; and o
ur
div
isional Pre
sidents
.
Our s
tr
ategic o
ve
r
si
ght an
d col
l
ab
or
ation m
ode
l ena
ble
s u
s to
br
in
g tog
ethe
r the s
ki
ll
s and kn
ow
l
ed
ge of o
ur Bo
ar
d
, our e
xec
uti
v
e
team a
nd bu
sin
es
s a
nd f
unc
t
ion
al le
ad
er
s to d
r
i
ve ef
fec
ti
v
e lo
ng
-
ter
m de
ci
sio
n mak
in
g, E
S
G in
no
v
atio
n an
d be
s
t pr
a
c
tic
es a
cr
os
s
Smi
th
s. O
ur Sm
ith
s E
xc
ell
enc
e Sy
s
tem su
pp
or
ts t
he w
h
ole
, dr
i
v
in
g
business-
wide r
esults-focus
ed execution. ES
G
met
r
ic
s
and
ta
rg
et
s
ar
e ca
s
c
ade
d th
ro
ugh t
he di
v
i
sio
ns an
d em
be
dde
d in o
ur co
re
oper
ating model
.
E
S
G
rep
or
tin
g
We fol
lo
w es
t
ab
li
she
d r
ep
or
ting s
t
an
dar
d
s and r
e
gul
ar
ly rep
or
t our
per
for
mance
, tr
a
nsp
ar
ent
ly sh
ar
in
g our d
at
a and e
nga
gin
g w
it
h thir
d
-
par
t
y r
atin
gs ag
enc
ie
s
. We us
e thi
s infor
mation to e
v
al
uate ou
r ow
n
pr
og
re
s
s an
d info
r
m the w
or
k we ar
e doi
ng in o
ur fo
cu
s ar
ea
s.
Env
ironm
ental dat
a –
basi
s of pr
epar
ation
Gr
oup e
nv
ir
on
ment
al d
at
a in thi
s r
epo
r
t exclud
e
s Smi
th
s Me
dic
al
.
Smi
th
s Med
ic
al en
er
g
y us
e an
d GH
G S
cop
e 1 & 2 emi
s
sio
ns da
ta i
s
sho
w
n s
ep
ar
ate
ly in th
e t
able o
n p
age 3
0
.
In pr
ep
ar
ation fo
r set
ting S
ci
enc
e-
Ba
s
ed T
ar
get
s a
li
gne
d to
our Ne
t Zer
o com
mit
me
nt
s, i
n F
Y
2
0
2
2 a ro
bu
st r
e
v
ie
w of ou
r
F
Y
2
0
21 S
cop
e 1 & 2 GHG i
nv
entor
y an
d his
to
r
ic a
ss
e
s
sme
nt
s of
mater
i
al
it
y and cl
a
s
si
fi
c
atio
n w
as un
de
r
taken b
y our e
x
ter
n
al
spe
ci
al
is
t pa
r
tner
, Ramb
ol
l
. T
his w
a
s un
der
ta
ken in ac
cor
d
ance
w
ith I
S
O s
ta
nda
r
ds
. T
his p
r
oce
s
s r
e
sulte
d in th
e r
ec
l
as
si
f
ic
atio
n
of cer
ta
in ac
t
iv
i
ti
es a
nd si
te dat
a, p
r
ev
i
ous
ly dete
r
min
ed to b
e
imma
ter
ial a
nd S
co
pe 3
. T
he r
e
cl
as
s
if
ic
ati
on m
eant t
hat s
uch
ac
ti
v
i
tie
s an
d dat
a is n
ow i
nco
r
po
r
ate
d w
it
hin ou
r S
cop
e 1 & 2
inv
entor
ies
. In ad
di
tio
n, o
ur GHG e
mis
s
ion
s ar
e c
alc
ul
ate
d usin
g
re
v
is
e
d re
gio
nal e
mis
s
ion
s f
ac
tor
s. B
as
ed o
n thi
s wo
r
k
, ene
r
g
y
us
e and e
mis
si
on
s dat
a for S
mi
ths G
r
oup h
as b
een r
e
s
t
ated f
r
om
that p
r
ev
io
us
ly dis
c
los
e
d for F
Y
2
0
21. The s
a
me ap
pr
o
ach h
as b
ee
n
us
ed fo
r F
Y
2
0
2
2 emi
s
sio
ns d
ata a
nd c
alc
ul
at
ion
s.
F
Y
2
0
21 re
s
t
ateme
nt:
–
Smi
th
s lea
s
ed gr
o
und f
le
et an
d sma
ll le
as
e
d of
f
ic
es
/sites
(
pr
ev
i
ou
sly c
ons
ide
r
ed to b
e S
cop
e 3) r
e
-
cl
as
s
if
ie
d as S
co
pe
s
1
&2 (
ad
de
d 3
9
,0
8
3 M
W
h)
–
Inclusion of
our Royal Metal acquisition
’
s sit
e and transpor
tation
fl
eet (
ad
de
d 5,
2
8
9 M
W
h
)
–
Ene
r
g
y us
e up
date
d for s
om
e site
s (
ad
de
d le
s
s than 5
00 M
W
h)
–
Regional Scope 2 emission factor
s updated
(r
educed emissions
by 9
,
9
81 t CO
2
e)
–
Ba
se r
e
ve
nue d
at
a has a
l
s
o be
en up
date
d for a
ll n
or
m
al
is
ed
ca
lcu
l
atio
ns in
clu
din
g GH
G emis
s
ion
s
, w
ater an
d w
as
te
Stakeholder expe
ct
ations
, standar
ds and third
-par
t
y assur
an
ce
pr
a
c
tic
es c
onti
nue to e
vo
lv
e in thi
s ar
ea
. Ou
r meth
od
s an
d
pr
a
c
tic
es w
i
ll co
ntin
ue to imp
r
ov
e an
d be r
ef
le
c
ted in o
ur
env
ir
o
nme
nta
l per
for
mance r
e
su
lt
s an
d as
s
oci
ated d
is
clo
sur
e
s
.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
29
EN
V
IR
O
NMEN
T
Smi
th
s has h
ad e
nv
ir
on
ment
al i
mpr
o
ve
ment t
ar
g
et
s sin
ce F
Y
2
0
0
7
.
Sin
ce F
Y
2
0
0
7 w
e hav
e r
ed
uce
d w
ater u
se a
nd n
on-
r
ec
ycl
ab
le
w
as
te by m
or
e th
an 3
0
% on a
n abs
ol
ute b
as
is an
d we h
av
e
incr
e
as
ed t
he u
se of r
en
e
w
abl
e ele
c
tr
i
cit
y in our o
pe
r
ati
on
s to 6
3
%
of tota
l ele
c
tr
i
cit
y us
e (
site
s r
ep
or
tin
g uti
li
t
y d
at
a und
er Sm
ith
s
HS
E Repo
r
ting P
ol
ic
y, w
ith 2
0 or mor
e emp
lo
ye
e
s). We ac
hie
v
ed
this b
y en
ga
gin
g our p
eo
ple
, cha
ngi
ng ou
r pr
oc
es
s
e
s
, inv
es
t
ing in
lo
w-
c
ar
b
on a
nd en
er
g
y ef
fici
ent te
chn
olo
gie
s
, an
d inc
re
as
ing o
ur
us
e of r
ene
w
ab
le el
ec
tr
icit
y.
Cli
mate
-r
el
ate
d r
i
sk
s and t
hei
r potent
ial im
pa
c
t on th
e bu
sin
es
s
and i
t
s s
tr
ate
g
y for
m par
t of r
isk r
e
por
tin
g an
d r
is
k man
age
ment
acr
os
s t
he Gr
o
up. D
ue to i
t
s lon
g-te
r
m nat
ur
e, cl
im
ate cha
ng
e is no
t
con
sid
er
ed to b
e a pr
i
nci
pa
l r
isk
, b
ut w
e r
eco
gni
s
e the im
po
r
tanc
e
of as
s
es
s
ing b
oth p
hy
si
ca
l and t
r
an
si
tio
n r
is
k fr
om c
l
imate c
han
ge
in a for
m
al w
a
y. Se
e our TC
F
D dis
cl
osu
re o
n pa
ge 3
5
.
We hav
e ag
re
e
d the t
hr
ee s
t
and
ar
ds r
el
ev
a
nt to our b
usi
ne
s
s und
er
the S
us
t
aina
bil
it
y Ac
count
ing S
ta
nda
r
ds B
oa
rd (
SA
SB) f
r
a
me
wo
r
k
(
A
ero
space Defence; Electronic and Elec
tr
ic Equipment;
and
Indu
s
tr
ia
l Mac
hine
r
y and G
o
ods
) an
d we a
r
e re
v
ie
w
in
g the p
otenti
al
app
li
ca
bil
it
y of a fou
r
th (E
lec
t
r
oni
c Manu
f
ac
tu
r
ing a
nd O
r
igi
nal
De
sig
n Man
uf
ac
t
ur
in
g
). In F
Y
2
0
2
2, w
e un
der
too
k a gap a
nal
y
sis to
ide
ntif
y th
e re
po
r
ting ar
e
as w
e ne
ed to p
ro
gr
e
s
s to fu
lly a
li
gn to th
e
fr
amew
or
k and ar
e t
ar
get
ing al
i
gnme
nt dur
i
ng F
Y
2
0
2
3
.
In F
Y
2
0
2
2, w
e co
mmi
t
ted to a
mbi
ti
ous N
et Zer
o t
ar
get
s t
hat
ali
gn S
mit
hs w
i
th th
e UN’s cr
iti
c
al gl
ob
al cl
im
ate obj
ec
ti
v
e
s:
Net Zer
o em
is
si
on
s fr
om o
ur op
er
ation
s (
S
cop
e 1 & 2
) b
y 2
0
4
0
and N
et Zer
o emi
s
sio
ns f
r
om o
ur sup
ply c
hai
n and p
ro
du
c
t
s
in us
e (
S
cop
e 3
) by 2
0
5
0
.
We hav
e co
mmi
t
ted to s
et S
ci
enc
e-
Ba
s
ed T
ar
get
s (
S
BT
s
) w
ith
the S
BT in
iti
ati
v
e (
SB
T
i
) and s
ign
ed on to t
he 1.5° C Bus
ine
s
s
A
mbi
ti
on un
der t
he UN R
ace to Ze
ro
, co
ve
r
ing S
c
op
e 1
, 2 and 3
GHG e
mis
si
on
s. We w
il
l su
bmi
t pr
op
os
al
s to the SB
T
i in 2
0
2
2 to
es
t
abl
is
h our b
e
sp
oke pl
an
s an
d inter
im S
BTs.
Ba
se
d on o
ur r
ev
i
ew of d
at
a mater
i
al
it
y
, ou
r Sc
op
e 3 emi
ss
io
ns w
il
l
like
ly sig
nif
ic
a
ntly e
xcee
d our o
pe
r
ati
on
al emi
s
sio
ns (
S
co
pe
s 1 &
2
). A
s i
s t
y
p
ic
al a
nd ex
pe
c
ted f
or di
v
er
s
if
ie
d ind
us
tr
i
al bu
sin
es
s
e
s
,
emis
s
ion
s as
s
oc
iate
d w
ith o
ur su
ppl
y cha
in (C
ateg
or
y 1 P
ur
cha
s
ed
Go
od
s and S
e
r
vi
ce
s) a
nd P
r
odu
c
t
s in us
e (C
ate
gor
y 1
1
) ar
e
antic
ip
ated
, pe
ndin
g in
-pr
o
ce
s
s ve
r
if
ic
at
ion
, to acc
ount f
or th
e
maj
or
i
t
y of o
ur S
co
pe 3 em
is
si
on
s. A
s re
quir
e
d by t
he S
BT
i
, our
pr
op
os
ed i
nter
im r
ed
uc
ti
on t
ar
ge
t wi
ll c
ov
er mo
r
e tha
n t
w
o thi
r
ds
of our tot
al S
c
ope 3 G
HG in
ve
ntor
y.
We re
co
gni
se t
hat de
li
v
er
i
ng o
ur Net Ze
ro t
ar
g
et
s w
ill r
e
qui
re
con
sis
tent a
nd p
r
ior
it
y fo
cu
s ac
ro
s
s all a
sp
ec
t
s of o
ur gl
ob
al
ope
r
at
ion
s for t
he ne
x
t 15-25 y
ear
s. In F
Y
2
0
2
3
, w
e wi
ll b
e
focused on establ
ishing fou
ndational process
es and approaches
nec
es
s
a
r
y to def
ine a
nd de
li
v
er n
ear
- an
d mi
d-ter
m tar
get
s
,
incl
udi
ng th
e inter
i
m SB
T
s re
quir
e
d und
er th
e SB
T
i fr
ame
wo
r
k
.
Energy use and GHG (Scope 1 & 2) emissions
Smi
th
s incl
ud
es i
t
s Str
e
aml
in
ed E
ner
g
y a
nd C
ar
b
on Rep
or
tin
g
(
SECR
) for F
Y
2
0
2
2
, incl
udi
ng ou
r emi
ss
io
ns an
d glo
ba
l ene
r
g
y
us
e and i
ntens
it
y (no
r
mal
i
se
d) m
etr
i
c bel
o
w. Our GH
G emi
ss
io
ns
ca
lcu
l
atio
ns a
nd r
ep
or
ting f
ol
lo
w
s the W
R
I
/
W
B
C
SD G
re
en
hou
s
e
Gas protocol (oper
ational approach) and cover
s emissions from
all s
ou
rc
es u
nde
r our c
ontr
ol
, g
r
oup
ed un
de
r S
cop
e 1 and S
c
op
e 2.
Performance in current three-year goal period
FY2
022-2024 target
Progres
s FY20
22
Use of renewable elec
tr
icit
y
1,2
+5
% inc
r
ea
s
e to 6
6%
+2% i
nc
re
a
s
e to 6
3
%
Normalis
ed greenhouse gas emissions
3,4
5% reduction
7
.2% reduction
Normalis
ed non-rec
ycl
able waste
2,3
5% reduction
1
1
.5% reduction
Nor
mal
is
e
d w
ate
r us
e in s
t
re
s
s
e
d ar
e
as (1
1 lo
c
ati
on
s
)
2,3
5% reduction
4.5% reduction
Water reduction projec
t
s
10 in F
Y2
0
2
2
12
p
r
oj
e
c
t
s
Packaging reduc
tion projec
ts
8 in F
Y
2
0
2
2
5 p
ro
je
c
t
s
1
N
on
-
G
HG p
r
o
du
c
in
g el
e
c
tr
ic so
u
rc
e
s in
c
lu
di
n
g hy
d
r
oe
l
ec
t
r
i
c an
d n
uc
le
a
r.
2
S
i
te
s r
ep
o
r
t
i
ng u
t
il
i
t
y d
at
a u
nd
er S
m
it
h
s H
SE R
ep
o
r
t
i
ng P
o
li
c
y, w
i
t
h 2
0 or m
o
r
e em
pl
o
y
ee
s
3
N
or
mal
i
s
ed t
o r
ev
e
nu
e
. A
bs
o
l
ut
e GH
G e
mi
s
si
o
ns d
o
w
n 1.
1%.
4
W
e ha
v
e bu
il
t a m
or
e a
g
gr
e
s
si
v
e G
H
G re
d
uc
t
i
on t
a
r
ge
t tr
aje
c
to
r
y to m
ee
t ou
r S
BTs an
d a
n en
er
g
y e
f
f
i
ci
e
nc
y t
a
r
g
et i
nto o
ur c
o
ll
e
a
gu
e an
d e
xe
cu
t
i
v
e in
ce
nt
i
v
e pl
a
n
s fo
r F
Y2
02
3
.
Energy use and GHG (Scope 1 & 2) emissions
FY2
022
FY2
021
1
Global energy use –
absolute values
KWh
224,3
34,020
224,394,230
UK en
er
g
y u
s
e
KWh
10
,
4
4
5
,9
0
0
n
/a
Smiths Medic
al
2
KWh
2
7,
4
6
3
,
8
0
0
75,0
06,5
00
Smiths Medic
al UK
2
KWh
4
61,
8
0
0
n/a
Global emissions –
absolute values
Scope 1 (direct emissions)
t CO
2
e
19
,1
3
1
2
0,37
8
Scope 2 (indirect emissions)
t CO
2
e
32,5
39
31,
8
6
5
To
t
a
l
t CO
2
e
51,67
0
52,24
3
UK S
co
p
e 1 & 2 emi
s
si
on
s
t CO
2
e
1,7
5
5
n
/a
Sm
it
hs M
ed
ic
al S
c
op
e 1 & 2 e
mis
s
io
ns
2
t CO
2
e
6
,1
7
6
16
,
74
0
Sm
it
hs M
ed
ic
al U
K S
co
pe 1 & 2 e
mi
s
si
on
s
2
t CO
2
e
7
n
/a
Global emissions –
normalis
ed values
Scope 1 (direct emissions)
t CO
2
e/£m re
venue
7.
4
6
8
.
47
Scope 2 (indirect emissions)
t CO
2
e/£m re
venue
12
.
6
8
13
.
2
4
To
t
a
l
t CO
2
e/£m re
venue
2
0
.1
4
21.7
1
1
F
Y
2
0
21 d
at
a u
pd
a
te
d fo
l
lo
w
i
ng v
e
r
i
fi
c
at
i
on
. S
e
e b
as
i
s of p
r
ep
a
r
at
i
on p
a
r
a
gr
aph o
n p
ag
e 2
9.
2
S
mi
t
hs M
e
di
c
a
l F
Y2
0
2
1 an
d F
Y
2
0
2
2 da
t
a is n
ot i
n
cl
u
de
d in G
r
o
up d
at
a a
nd h
a
s no
t b
ee
n u
pd
at
e
d fo
r th
e c
ha
n
ge
s d
e
sc
r
i
be
d a
b
ov
e
.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
30
Ener
gy
ef
f
icienc
y an
d ren
ew
able el
ec
tr
icit
y
Acc
ele
r
ati
ng p
ro
je
c
t
s that r
e
duc
e ov
er
all ene
r
g
y us
e an
d incr
e
as
e
our u
se of e
le
c
tr
ic
it
y fr
om r
en
ew
a
ble s
ou
rc
es w
i
ll b
e cr
i
tic
al to o
ur
succ
es
s i
n ach
iev
i
ng ou
r S
cop
e 1 & 2 t
ar
get
s
.
In F
Y
2
0
2
2, w
e e
s
ta
bl
ish
ed a G
r
oup
-
w
ide E
ne
r
g
y T
eam to pr
i
or
i
tis
e,
coo
r
din
ate and e
nsu
re d
el
i
ve
r
y of the p
r
oje
c
t
s ne
ce
s
s
ar
y to
mee
t our N
et Zer
o an
d SB
T com
mit
ment
s
, in
clu
din
g ene
r
g
y
ef
f
ic
ien
c
y, onsi
te r
ene
w
ab
le en
er
g
y (e
.g.
, so
l
ar
), and p
r
oc
ur
in
g
re
ne
w
abl
e en
er
g
y. The E
ne
r
g
y T
eam w
il
l pl
ay a c
r
it
ic
al r
ol
e in
identify
ing, aggregati
ng, suppor
ting a
nd tracking project
s as we
move for
w
ard.
6
3
% of th
e ele
c
tr
i
ci
t
y c
ur
r
entl
y us
ed i
n our op
er
ation
s is f
r
om
re
ne
w
abl
e s
our
ce
s (
si
tes r
ep
or
tin
g ut
ili
t
y data un
de
r Smi
th
s HS
E
Repo
r
ting Po
l
ic
y, wi
th 2
0 o
r mo
re e
mpl
oy
ee
s
) and o
ur g
oal i
s to
incr
e
as
e thi
s to 6
6% by th
e end of F
Y
2
02
4 and to 10
0
% by 2
0
4
0.
We und
er
took a gl
ob
al su
r
ve
y of on
site r
e
ne
w
abl
e opp
or
tun
it
ie
s in
F
Y
2
0
21 and h
av
e be
en e
v
alu
atin
g a r
an
ge of te
ch
nol
og
ie
s inc
lud
ing
so
l
ar
, win
d, lo
w
-
c
ar
b
on he
atin
g an
d co
ol
ing (
LCH
C), an
d comb
ine
d
hea
t and p
o
wer (
CHP
). A
n on
si
te re
ne
w
abl
e ene
r
g
y s
y
ste
m is
alr
e
ad
y in p
l
ac
e in Su
zho
u, C
hina a
nd w
e ha
ve r
e
centl
y com
ple
ted
a so
l
ar in
st
al
l
ati
on at S
mit
hs D
etec
t
ion
, Jo
hor B
ah
r
u, M
al
a
y
sia
.
Env
ironment
al management
Per
for
mance against our comprehensive por
tfolio of
env
ir
o
nme
nta
l po
li
cie
s is o
ve
r
s
ee
n by o
ur inter
n
al au
di
t pr
oc
es
s
and w
e ma
inta
in an ex
ter
nal e
nv
ir
on
ment
al c
omp
li
anc
e aud
it
pr
og
r
am
me of ap
pr
oxi
matel
y 1
5 si
tes e
ve
r
y ye
ar
. All S
mi
ths
ope
r
at
ion
al si
tes w
i
th o
ve
r 5
0 col
le
ag
ue
s ar
e r
equ
ir
ed un
de
r
Gr
oup p
ol
ic
y to be cer
tif
i
ed un
der I
S
O en
v
ir
onm
ent
al an
d s
afet
y
st
an
dar
d
s (1
8
0
01 o
r 4
5
0
01 a
nd 14
0
01) – appr
ox
imatel
y 6
0 si
tes
– unle
s
s th
ey w
er
e r
ec
entl
y acq
uir
ed j
us
t bef
or
e or du
r
ing t
he
CO
V
ID
-
1
9 pa
nde
mic
. T
ho
s
e site
s w
er
e not a
ll
ow
ed t
hir
d p
ar
t
y
v
isi
tor
s d
ur
in
g the p
an
dem
ic an
d ar
e no
w w
or
k
ing to
w
ar
d
s
cer
tif
ic
at
ion a
s lo
c
al co
ndi
tio
ns a
llo
w. We ha
d no en
v
ir
on
ment
al
spil
l
s o
r env
i
ro
nm
ent
al com
pl
ian
ce p
enal
tie
s or f
in
e
s in F
Y
2
0
2
2
.
R
estrict
ed su
bsta
nc
es
Al
l di
v
is
ion
s p
ar
tici
pate in a r
e
gul
a
r for
um to shar
e be
s
t
pr
actice
s and ensure compliance wi
th global res
tric
ted
sub
st
an
ce r
eg
ul
ati
ons i
ncl
udin
g W
E
EE
, RoH
S, P
r
op
6
5
, RE
ACH
,
T
SC
A a
nd Re
spo
ns
ibl
e Mine
r
al
s. We op
er
ate a Rest
r
ic
te
d
Sub
st
an
ce Ste
er
i
ng C
omm
it
te
e to ens
ur
e th
at we a
re
adequately res
ourced in this area
.
SO
C
IAL
S
afet
y
We hav
e an e
x
ten
si
ve s
et of h
ea
lth an
d s
afet
y pol
ic
ie
s and p
r
oc
edu
re
s
that a
ll op
er
ation
s ar
e r
equ
ir
ed to fo
ll
ow. Pe
r
for
ma
nce a
gai
ns
t the
s
e
pol
ic
ie
s is o
ve
r
s
ee
n by an a
udi
t pr
o
ce
s
s that a
l
s
o co
ver
s all Sm
ith
s
pr
od
uc
ti
on f
ac
ili
ti
es in
clu
din
g IS
O H
S
E man
age
ment s
ys
tems
.
We re
por
t al
l inju
r
ie
s glo
ba
ll
y in acc
or
da
nce w
i
th US O
S
H
A gu
idan
ce.
Our h
ea
dl
ine s
afe
t
y m
etr
i
c
s ar
e Rec
or
dab
le In
cid
ent R
ate (R
IR
) –
w
her
e in
cid
ent
s r
eq
uir
e me
dic
a
l at
tenti
on b
ey
on
d fi
r
s
t aid – a
nd
Lo
st T
i
me In
cid
ent Rate (
LTIR
) – w
h
er
e a co
lle
ag
ue is u
nab
le to w
or
k
fol
lo
w
ing a
n inc
ide
nt – per 10
0 co
ll
ea
gue
s
, pe
r ye
ar ac
r
os
s Sm
ith
s
.
In ad
dit
ion to p
r
epa
r
in
g injur
y r
e
duc
t
ion p
l
ans
, e
ac
h of our d
i
vi
si
ons
is r
eq
uir
ed to s
et co
mpl
etio
n t
ar
get
s fo
r th
e S
afet
y Lea
din
g
Indi
c
ator (
S
L
I) p
ro
ac
t
i
ve a
nd pr
e
ve
ntat
i
ve s
af
et
y m
ea
sur
e
s mo
s
t
re
le
v
ant to th
eir op
er
ation
s
, wi
th a
n exp
e
c
tat
ion of a
chi
ev
i
ng 9
5% of
tar
g
et ann
ual
ly. SL
Is i
ncl
ude a
c
ti
v
i
tie
s su
ch as s
a
fet
y inspe
c
ti
on
s,
lea
de
r
shi
p tour
s
, t
r
ain
ing
, an
d our s
afe
t
y l
ook o
ut p
ee
r
-to
-p
eer
obser
vation progr
amme.
Our G
ro
up Re
cor
da
ble I
nci
dent R
ate in F
Y
2
0
2
2 w
a
s 0.
5
4; 15%
abo
v
e F
Y
2
0
21 but c
onti
nue
d to tr
ack be
lo
w the i
ndu
st
r
y av
er
a
ge
and in t
he top q
uar
til
e of ind
us
tr
y p
er
for
m
ance
1
. Our G
ro
up L
os
t
T
ime In
cid
ent R
ate w
as 0
.2
4
.
W
hile o
ur fo
cu
s on s
afet
y did n
ot w
av
er du
r
ing F
Y
2
0
2
2
, l
ike man
y
comp
an
ie
s
, we f
ac
ed s
e
ver
al cha
lle
ng
es t
hat l
ikely af
fec
te
d our
s
afet
y per
for
ma
nce
. Ev
i
den
ce in
dic
ate
s tha
t the
s
e inc
re
as
e
d injur
y
r
ate
s ha
ve b
ee
n br
oa
dly e
xp
er
i
enc
ed a
cr
os
s th
e ind
us
tr
i
al s
ec
tor
mor
e r
ec
entl
y. Staf
fing a
nd s
upp
ly ch
ain ch
al
len
ge
s dur
i
ng an
d
fol
lo
w
ing t
he C
O
V
ID
-
1
9 pan
dem
ic ha
ve m
ea
nt that at s
om
e Sm
ith
s
site
s co
ll
ea
gue
s ha
ve h
ad to w
or
k i
r
r
egu
l
ar or e
x
ten
de
d ho
ur
s
.
Nea
r
ly 3
,0
0
0 coll
ea
gue
s r
ep
or
ted ha
v
in
g CO
V
I
D-
1
9 dur
i
ng th
e ye
ar;
ret
ur
ni
ng to w
or
k a
nd su
f
f
er
in
g the a
f
ter
-
ef
fec
t
s of C
OV
ID-
1
9 is
cha
lle
ngi
ng. We h
av
e s
een t
he f
ur
the
r imp
ac
t of l
imi
ted f
a
ce to f
ace
inter
a
c
tio
n; s
afet
y commi
t
tee
s un
abl
e to me
et; l
imi
t
s on tr
avel
; an
d
the g
ene
r
al i
mp
ac
t of p
eo
ple d
eal
in
g w
it
h the up
he
av
a
l of CO
V
ID-
1
9
.
Th
is p
er
for
m
ance d
oe
s n
ot re
fl
ec
t th
e w
or
k en
v
ir
onm
ent w
e w
ish
to hav
e, an
d w
e intend to i
mpr
o
ve s
af
et
y p
er
for
m
anc
e con
si
ste
ntly
ye
ar on y
ea
r by c
ontin
uin
g to inv
e
st i
n ne
w pr
og
r
am
me
s
, tr
a
inin
g
acti
v
ities and site-speci
fic injur
y r
eductio
n plans
.
Dur
i
ng F
Y
2
0
2
2 S
mit
hs r
e
cor
d
ed zer
o w
or
k
-r
el
ate
d col
le
ag
ue or
contrac
tor fatalities
. Thre
e contrac
tor recordable incidents were
re
po
r
ted. We r
ec
ei
ve
d no s
igni
f
ic
ant s
afe
t
y f
in
es o
r pe
nal
tie
s
.
Incl
udi
ng Sm
it
hs Me
dic
a
l
, we a
chi
ev
ed a
n RIR of 0
.5
0 an
d an LTIR
of 0.
21. The nat
ur
e of w
or
k in t
he S
mit
hs Me
di
ca
l op
er
at
ion
s me
ant
that t
he di
v
i
sio
n pr
ev
i
ou
sly h
ad a p
osi
ti
v
e imp
ac
t o
n injur
y r
ates
.
RECORDABLE INCIDENT RATE
Per 10
0 col
le
ag
ue
s
0.5
4
FY2021: 0.47
LOST TIME INCIDENT RATE
Per 10
0 col
le
ag
ue
s
0.2
4
FY2021: 0.20
0.47
0.35
0.50
0.44
0.54
FY2021
FY2020
FY2019
FY2018
FY2022
0.20
0.17
0.24
0.19
0.24
FY2021
FY2020
FY2019
FY2018
FY2022
1
B
L
S d
at
a – N
A
I
C
S 3
39
9
0
0
; w
w
w.
b
l
s
.g
o
v
/
ii
f
/os
h
um
.
htm
#
2
0
Q
ua
r
til
e
_
D
a
ta
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
31
COVID-
1
9
S
afet
y pre
c
au
tio
ns r
el
at
ing to C
O
V
ID
-
1
9 hav
e be
en a
n imp
or
tant
feat
ur
e of ou
r ov
er
a
ll s
af
et
y ef
for
ts o
v
er th
e l
as
t 3
0 mo
nth
s.
W
hile m
an
y re
s
tr
i
c
tio
ns h
av
e no
w be
en l
if
ted, w
e co
ntinu
e to
mon
itor t
he si
tu
atio
n, a
nd e
ach of o
ur lo
c
ati
ons c
onti
nue
s to
comp
ly w
i
th lo
c
al r
eq
uir
em
ent
s as i
nfec
t
ion r
ates f
luc
t
uate
.
Pr
act
ic
al m
ea
sur
e
s to sup
po
r
t our col
le
ag
ue
s acr
o
s
s the p
er
i
od
have included:
–
A
n unw
aver
i
ng fo
cu
s on C
O
V
ID
-s
afe w
o
r
k env
i
ro
nme
nt
s
–
Pu
r
sui
ng a co
ns
is
tent ap
pr
oa
ch to c
or
e emp
lo
ye
e be
nef
it
s i
ncl
udin
g
li
fe co
ve
r
, cri
tic
a
l ill
ne
s
s
, dis
a
bil
it
y, and med
ic
al in
sur
ance
–
Roll
in
g ou
t a glo
ba
l Emp
lo
ye
e A
ssi
st
an
ce P
ro
gr
amme (
E
AP
)
–
Regular communic
ation, bespo
ke resour
ce sites and
well
nes
s material
s
A
s a G
ro
up, w
e ar
e ho
nou
re
d b
y the in
cr
e
dibl
e ef
f
or
ts m
ad
e
by o
ur tea
ms in s
upp
or
tin
g the
ir ow
n s
af
et
y a
nd th
e s
afet
y of
othe
r
s
, inc
lud
ing in o
ur co
mmu
nit
ie
s, w
h
ile co
ntin
uin
g to ser
v
e
our c
us
tome
r
s ac
r
os
s thi
s ex
tende
d per
iod. O
ur da
ta in
dic
ate
s
that c
ol
lea
gu
e CO
V
ID
-
1
9 c
as
es h
av
e t
ypi
c
all
y tr
a
cked l
oc
al
comm
uni
t
y c
a
se
s an
d th
at the
r
e hav
e b
een v
er
y fe
w in
st
an
ce
s
of tr
a
nsm
is
si
on at w
or
k
.
Enga
ging w
ith
our co
llea
gue
s
Our global communications acti
vi
ties are designe
d to engage
col
le
agu
e
s ar
oun
d the w
or
ld w
ith o
ur P
ur
p
os
e and o
ur s
tr
ateg
y.
Ke
y com
muni
ca
tio
ns ma
ter
ia
l
s ar
e tr
ansl
ate
d into o
ur ten
core l
anguage
s.
Our S
mit
hs N
ow a
pp is a p
l
at
fo
r
m for c
ol
lea
gu
es to r
e
cei
v
e ne
w
s
fr
om a
ro
un
d the b
usi
ne
s
s and s
har
e th
eir v
i
ew
s an
d s
tor
i
es a
nd
is alw
ays a
c
ti
v
e w
ith g
r
as
s
r
oot
s co
ntent
. T
her
e i
s al
s
o a gl
ob
al
for
tnightly e-newslet
ter
, Signal, w
hich amplifies key company
ne
w
s to the gl
ob
al b
usin
e
s
s. O
ur intr
anet w
eb p
or
tal a
c
t
s as a
n
onl
ine h
ub fo
r hol
din
g r
es
ou
rc
es f
or ma
ny ar
e
as in
clu
din
g s
afet
y
,
well-being, ethic
s and compliance, div
er
sit
y and inclusion
, and
I
T tips
.
We und
er
took o
ur M
y S
ay c
ol
le
agu
e eng
ag
eme
nt sur
v
ey i
n
Nov
em
ber 2
021 an
d May 2
02
2 an
d com
muni
c
ated th
e key
out
com
es t
o c
ollea
gues.
We und
er
took a nu
mb
er of en
ga
gem
ent pr
o
jec
t
s i
n
F
Y2
0
2
2 including:
–
Communication
s around our re
sults announcem
ents
and C
ap
it
al Ma
r
ket
s ev
ent;
–
Co
mmun
ic
ati
ons a
ro
un
d our S
E
S Aw
a
rd
s an
d M
y S
ay s
ur
ve
y
s;
–
A glob
al T
o
w
n Hal
l in Ma
y 2
0
2
2;
–
Our S
mit
hs D
ay c
eleb
r
at
ion o
f Smi
th
s cul
tur
e in Ju
ne 2
0
2
2
.
Memb
er
s of the E
xe
cu
ti
v
e Co
mmi
t
tee s
har
e
d v
ide
o me
s
s
ag
e
s
and v
i
site
d si
tes a
ro
un
d the w
or
ld to shar
e S
mit
hs D
ay
with colle
agues;
–
Glo
ba
l lea
de
r
shi
p sum
mit
s f
or ou
r Se
nio
r Le
ad
er
s
hip te
am in
Nov
em
ber 2
021, Febr
ua
r
y 2
0
2
2 and J
uly 2
0
2
2 w
i
th th
e ne
x
t on
e
pl
an
ne
d for No
v
emb
er 2
0
2
2; a
nd
–
A
n onl
in
e pr
e
se
ntat
ion a
nd Q
&
A a
bo
ut p
ay an
d th
e wo
r
k of th
e
Remuneration (now the Remuneration & People) Committee
hos
te
d by C
om
mit
tee Chair B
ill S
e
eg
er
.
Memb
er
s of our E
xe
cu
ti
v
e Co
mmi
t
tee a
nd B
oar
d h
av
e al
so v
isi
ted
a r
an
ge of S
mit
hs s
ite
s dur
i
ng th
e ye
ar
. Read m
or
e on p
ag
e 6
0.
Developi
ng talen
t
Th
er
e ar
e ma
ny o
ppo
r
tuni
tie
s fo
r pe
opl
e to gr
ow t
hei
r c
ar
eer
s at
Smi
th
s. O
ur mo
r
e st
r
uc
t
ur
ed an
d di
v
er
s
e ap
pr
o
ach to s
ucce
s
si
on
pl
an
ning f
ol
lo
w
ing t
he t
ale
nt re
v
ie
w
s th
is ye
ar h
as en
ab
led u
s to
ide
ntif
y an
d de
vel
op hi
gh
-p
otentia
l ind
i
v
idu
al
s f
r
om a b
ro
ad
er p
oo
l
of di
ve
r
s
e col
le
ag
ue
s fr
o
m all g
eo
gr
aphic
al r
e
gio
ns
, sp
ec
ial
is
ed
ski
ll s
et
s an
d ind
us
tr
y ex
pe
r
ien
ce. S
e
pa
r
atel
y, appoi
ntme
nt
s to our
mos
t s
eni
or r
ol
es a
r
e dis
cu
s
se
d at a mo
nthly T
al
ent De
v
elo
pme
nt
Co
mmi
t
tee c
omp
r
isi
ng al
l me
mbe
r
s of th
e E
xe
cu
ti
v
e Co
mmi
t
tee
.
Th
is y
ear a
l
s
o s
aw t
he int
ro
du
c
tio
n of a ne
w or
ga
nis
at
ion
al m
etr
ic
to enab
le m
ean
ing
f
ul me
as
ur
eme
nt of ta
lent p
r
ogr
e
s
sio
n thr
o
ugh
the o
r
gani
s
ati
on. We w
i
ll co
ntin
ue to in
ve
s
t in inter
n
al t
ale
nt
mob
il
it
y as a sig
nif
ic
ant s
o
urc
e of v
alu
e for S
mi
ths
.
W
hile o
ur di
v
i
sio
ns s
er
v
e dif
fere
nt mar
kets
, the
r
e is mu
ch
comm
on g
ro
und i
n the q
ual
it
ie
s and s
ki
ll s
et
s r
eq
uir
ed in o
ur
tech
nic
al te
am
s as th
ey e
nab
le us to d
el
i
ve
r ef
f
ic
ient
ly an
d cr
eate
ne
w pr
od
uc
t
s fo
r the f
u
tur
e. We s
e
e opp
or
tun
iti
es to l
ev
er
age
this c
omm
on gr
o
und m
or
e ef
fec
ti
v
ely b
y cr
ea
tin
g for
m
al Gr
o
up
-
w
ide te
chn
ic
al co
mmu
nit
ie
s w
her
e gr
o
ups of s
pe
cia
li
s
t
s ca
n
conn
ec
t
, sh
ar
e pr
ob
lem
s an
d ide
as
, an
d co
ntr
ib
ute to de
li
v
er
y of
our s
tr
ateg
y – for e
xam
ple e
ner
g
y r
e
duc
t
ion p
r
oje
c
t
s
. We pl
an to
intr
od
uce a c
omm
on te
chni
c
al c
ar
ee
r l
ad
der a
cr
os
s t
he Gr
o
up
that w
il
l pr
o
v
id
e ca
r
eer v
i
sib
il
it
y for ind
i
v
idu
al
s a
nd en
han
ce
inter
n
al ta
lent m
ob
ili
t
y
.
Rew
ar
d and
re
cognitio
n
Reco
gni
sin
g and r
e
w
ar
di
ng co
ll
ea
gue
s in a f
ai
r
, open an
d
mea
nin
gf
ul w
a
y is an i
mpo
r
tant un
de
r
pin to d
ev
el
opin
g t
alent
.
We ar
e com
mit
te
d to f
air p
ay p
r
a
c
tice
s an
d en
sur
i
ng th
at
col
le
agu
e
s par
ti
cip
ate in ou
r suc
ce
ss
.
We hav
e be
en a
n acc
re
di
ted L
i
v
in
g Wag
e emp
lo
ye
r in th
e
UK sin
ce 2
018.
In the U
K
, w
e op
er
ate a
n all-
em
plo
y
ee S
har
e
s
av
e S
ch
eme
,
w
hich e
nab
le
s co
lle
ag
ue
s to bu
y S
mit
hs s
har
e
s at a dis
co
unte
d
r
ate. We h
av
e al
s
o b
ee
n und
er
tak
in
g a pr
oc
es
s to al
i
gn emp
lo
ye
e
ben
ef
it
s a
cr
os
s ma
r
ket
s
, so t
he
y ar
e the s
a
me fo
r col
le
agu
e
s in
any of o
ur fo
ur di
v
is
ion
s or G
ro
up. We h
av
e com
ple
ted th
is w
or
k in
Chin
a, In
dia an
d Me
xi
co to date
.
Th
e Bo
ar
d i
s con
s
cio
us of th
e ch
all
en
ging i
mp
ac
t of c
ur
r
ent
infl
ationa
r
y pr
e
ss
ur
e
s on co
lle
ag
ue
s an
d thi
s is r
ef
lec
te
d in th
e
man
age
ment d
ec
isi
on to fo
cu
s mo
re o
f the s
al
ar
y incr
ea
se b
ud
get
on th
os
e w
ho ar
e m
or
e si
gnif
i
ca
ntly af
fec
te
d in the c
omi
ng y
ear
.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
32
Div
er
sit
y
, equit
y
and inclusion
We pr
ov
i
de e
qual e
mpl
oy
m
ent op
po
r
tuni
tie
s
. We re
cr
uit, s
upp
or
t
and p
ro
mote o
ur pe
op
le b
as
ed o
n th
eir qu
al
if
ic
ati
on
s, s
kil
l
s
,
aptitude and
attitude. In employment
-rel
ated decisions, we comply
w
ith a
ll ap
pl
ic
ab
le ant
i-
di
sc
r
imin
ati
on r
equ
ir
eme
nt
s in th
e
relev
ant jurisdiction
s. We have ze
ro toler
ance for discrimination,
har
ass
ment o
r r
eta
li
atio
n.
People with disabili
ties are given full consider
ation for
employ
ment and sub
sequ
ent tr
aining (inclu
ding re
-tr
aining
,
if need
ed, for
people
who have bec
ome d
isabled),
career
de
vel
op
ment a
nd pr
o
moti
on b
as
ed o
n th
eir apt
it
ude a
nd ab
il
it
y.
We end
ea
vo
ur to f
ind r
o
le
s for th
os
e w
ho a
r
e unab
le to co
ntin
ue
in the
ir ex
is
ti
ng jo
b be
c
aus
e of di
s
abi
li
t
y.
We ar
e foc
us
ed o
n pr
o
ac
ti
v
ely i
ncr
e
asi
ng th
e num
ber o
f wo
men i
n
lea
de
r
shi
p ro
le
s at Sm
ith
s
, as w
el
l as un
de
r
s
ta
ndin
g th
e
cha
lle
ng
es a
nd b
ar
r
i
er
s th
at ma
y be i
mpe
din
g th
em f
ro
m f
ulf
il
li
ng
thei
r pote
ntial
. We have s
om
e w
ay to g
o, w
hi
ch is w
h
y it i
s one
of our E
S
G s
tr
ategic p
r
io
r
it
ie
s.
We hav
e f
i
ve fe
mal
e mem
be
r
s of th
e Smi
th
s Bo
ar
d (
4
5%),
and w
e w
elco
me
d thr
e
e ne
w fem
ale m
emb
er
s to o
ur E
xe
cu
ti
v
e
Co
mmi
t
tee in F
Y
2
02
2 (
31
% w
ome
n). Wom
en m
ake up 2
8
% of
our gl
ob
al co
ll
ea
gue p
op
ul
ati
on
, but o
nly 2
4% of our 6
5
6 s
eni
or
lea
de
r
s
. We ar
e wo
r
ki
ng to ch
ang
e thi
s w
it
h a pr
og
r
am
me
of ac
ti
v
i
tie
s d
es
ign
ed to id
enti
f
y, suppor
t an
d ad
v
a
nce th
e
ca
re
er
s of the hig
h-
pote
ntial w
om
en w
e al
r
ea
d
y hav
e at S
mit
hs
.
Our t
ar
g
et is to r
ea
ch 2
7
% b
y the e
nd of F
Y
2
0
2
3 and 3
0
% by
the e
nd of F
Y
2
0
2
4
.
Th
e op
po
r
tunit
y to impr
o
ve i
n the d
iv
er
sit
y
, equ
it
y and
incl
usi
on ar
e
a ha
s be
en r
ec
ogn
is
ed a
nd pr
ior
it
is
ed i
n our
People str
ategy. Besides clear
ly ar
ticulated diver
sit
y metr
ic
s
and o
bje
c
ti
v
es
, in F
Y
2
02
3 w
e w
il
l al
s
o intr
o
duc
e our r
e
v
is
ed
pe
opl
e le
ade
r de
ve
lop
ment p
r
ogr
amme
, w
hich i
s f
ull
y al
ign
ed
to our S
mit
hs L
ea
der
ship Be
ha
v
iou
r
s
. One e
ntir
e le
ar
n
ing
mo
dule i
n the p
r
ogr
amme w
il
l be f
oc
us
ed o
n emot
ion
al
and cultural intelligence, conscious inclusion,
and the role
of le
ade
r
s in s
et
ti
ng an
d le
adi
ng di
v
er
s
e te
ams
. In a
ddi
ti
on,
ev
er
y di
v
is
ion h
as i
ntr
odu
ce
d it
s o
w
n di
v
er
s
it
y and inc
lus
ion
pr
io
r
it
ie
s
, of
te
n sup
por
ted b
y de
di
ca
ted in
di
v
id
ual
s, an
d
incl
udi
ng un
der
rep
re
s
ente
d gr
oup n
et
w
or
ks
, ed
uc
ati
on,
communication and other suppor
t acti
v
ities
.
Communitie
s
Our direct econ
omic contribution to communities and societ
y
w
as £
2
.
3
3bn in F
Y
2
0
2
2
.
FY2
022
Employe
e costs
£82
3m
Supplier cost
s
£1,
3
6
4
m
Ta
x
p
a
i
d
£14
0
m
To
t
a
l
£2
.3
3bn
GEND
ER DI
V
ER
SI
T
Y
IN THE GROUP
BOARD OF DIREC
TORS
Male
6 (55%)
Female
5 (45%)
EXECUTIVE C
OMMITTEE
Male
9 (69%)
Female
4 (31%)
SENIOR LEADERSHIP TEAM
1
Male
498 (76%)
Female
158 (24%)
TO
T
AL C
OLLEAGUES
Male
10,631 (72%)
Female
4,133 (28%)
1
S
e
ni
o
r Le
a
de
r
s
hi
p Team i
s t
he K
P
I u
s
e
d to t
r
a
ck g
en
d
er d
i
v
er
s
i
t
y a
t Sm
i
th
s
. I
t is
de
f
in
ed a
s a
ll c
o
ll
e
a
gu
e
s th
at a
r
e Gr
ad
e 14 or a
bo
v
e
. Da
t
a fo
r G
r
a
de 14 a
nd a
b
o
ve
pl
us D
i
r
ec
t
or
s of su
bs
id
i
ar
y co
mp
a
ni
e
s
, in l
i
ne w
i
t
h th
e d
ef
in
i
ti
o
n in t
he C
o
mp
a
ni
e
s
Ac
t 2
00
6 (
S
t
r
at
eg
i
c Re
po
r
t and D
i
re
c
t
or
s’ R
ep
o
r
t
) Reg
ul
a
ti
o
ns 2
013 is F
em
al
e: 171
an
d Ma
l
e: 5
61.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
33
GOV
ERNA
NCE
Human right
s
We con
sid
er v
io
l
ati
ons o
f huma
n r
ight
s to b
e ap
pa
ll
in
g cr
im
es
.
Co
ndu
c
t that e
xp
loi
t
s w
or
ker
s or deni
es t
hem t
he r
i
ght
s an
d
ben
ef
it
s to w
hi
ch th
ey a
re l
eg
all
y enti
tle
d is w
h
ol
ly in
con
sis
tent
w
ith o
ur Val
ue
s and p
ol
ic
ie
s an
d is not to
ler
ated. We r
e
cog
nis
e th
e
imp
or
tant r
e
sp
on
sibi
li
t
y we ha
ve, a
nd w
e sup
po
r
t the v
isi
on of a
wo
r
ld w
h
er
e ev
er
y
one c
a
n enjo
y th
eir un
i
ve
r
s
al hu
man r
i
ght
s
.
Our Hu
man R
ight
s P
ol
ic
y is guid
ed b
y th
e inter
n
atio
nal h
uman
right
s principles encompas
sed in the Univers
al Decl
ar
ation
of Huma
n Ri
ght
s
, the Inte
r
nat
ion
al L
a
bo
ur Or
g
aniz
ati
on’
s
De
cl
ar
ation o
n Fund
ame
nta
l Pr
incip
le
s and R
ight
s at Wo
r
k
, an
d
the Un
ite
d Nati
on
s Gui
din
g Pr
i
nci
ple
s on B
usi
ne
s
s and H
uman
Rig
ht
s. We a
dhe
re to n
ati
ona
l l
aw an
d r
eg
ul
ati
ons i
n ea
ch ma
r
ket
in w
hic
h we o
per
ate and
, sho
uld w
e en
cou
nter co
nfl
ic
t b
et
wee
n
inter
n
atio
nal
ly r
ec
og
nis
ed h
uma
n r
ight
s a
nd na
tio
nal l
a
w
s
, we w
il
l
se
ek w
a
y
s to hon
our t
he p
r
inc
ipl
es of i
nter
na
tio
nal hu
man r
ight
s.
Al
l pe
r
s
on
s wo
r
ki
ng fo
r
, o
r on b
eha
lf of, S
mit
hs ar
e r
eq
uir
e
d to
adh
er
e to our P
ol
ic
y and app
r
oa
ch.
Our Respon
sible Miner
al
s Sourcin
g Polic
y addres
s
es our
comm
it
ment to t
he s
our
cin
g of mi
ner
al
s in an et
hic
al a
nd
sus
t
ain
abl
e man
ner t
hat s
afe
gua
r
ds hu
man r
i
ght
s an
d aim
s to
ens
ur
e that t
in
, tun
gs
ten
, ta
ntal
um, g
ol
d and c
ob
alt a
re s
o
urc
ed
w
ith d
ue r
e
spe
c
t fo
r huma
n r
ight
s a
nd in a m
ann
er th
at do
e
s not
fi
nan
ce ar
m
ed gr
o
ups
. T
o achi
ev
e thi
s ob
jec
t
i
ve
, we t
ake gui
dan
ce
from the OECD Due Diligence
Guidance for R
espon
sible Supply
Chai
ns of Mi
ner
al
s f
ro
m Co
nfl
ic
t-A
f
fec
ted a
nd Hi
gh-
Ri
sk A
r
ea
s
.
We exp
e
c
t tho
se w
i
th w
h
om w
e hav
e a bu
sin
e
ss r
el
ation
ship –
sup
pl
ier
s
, c
ontr
acto
r
s
, sub
co
ntr
a
c
tor
s
, an
d an
yo
ne el
se in ou
r
sup
ply c
hain
s
, inc
lud
ing an
y r
ec
r
ui
tme
nt age
nt
s or ot
her p
ro
v
id
er
s
of l
ab
our (
temp
or
a
r
y or oth
er
w
is
e) – to s
har
e o
ur com
mit
ment to
huma
n r
ight
s a
nd to b
e fr
e
e fr
o
m pr
a
c
tic
es a
s
so
ci
ated w
i
th hum
an
r
ight
s v
i
ol
ati
on
s
, incl
udi
ng fo
rc
ed
/
i
nv
olu
nta
r
y la
bo
ur or m
od
er
n
sl
av
er
y. We take v
er
y s
er
io
us
ly any a
ll
eg
atio
ns th
at hum
an r
i
ght
s
are no
t properly respect
ed.
We hav
e not i
de
ntif
ie
d an
y se
r
io
us hum
an r
i
ght
s is
s
ue
s in our
ope
r
at
ion
s or in t
ho
se of o
ur su
ppl
ie
r
s in F
Y
2
0
2
2
.
Th
e Sm
ith
s Mo
de
r
n Sl
a
ve
r
y and Hu
man T
r
af
fic
kin
g St
ateme
nt
F
Y
2
0
2
2 c
an be f
oun
d on th
e Smi
th
s cor
por
ate w
eb
si
te
w
w
w.smiths
.com
A
nti-
br
ib
er
y and anti
-
cor
r
up
tion
Br
ib
er
y an
d cor
r
uption m
at
ter
s are co
v
er
ed b
y ou
r Co
de of
Busi
ne
s
s Ethi
c
s
. We al
s
o ha
ve s
pe
ci
fi
c po
li
cie
s an
d pr
oc
ed
ur
es
re
l
atin
g to ac
ti
v
i
tie
s t
hat cr
e
ate br
ib
er
y an
d co
r
r
upt
ion r
isk
s, a
nd
an umb
re
ll
a a
nti-
br
i
ber
y a
nd ant
i-
co
r
r
upt
ion p
ol
ic
y that pr
o
v
ide
s
a sing
le v
ie
w of o
ur app
r
oa
ch
. T
he
se p
ol
ic
ie
s co
ve
r a br
oa
d r
a
nge
of mat
te
r
s inc
lud
ing t
he gi
v
i
ng an
d r
ece
i
v
ing of g
if
ts
, me
al
s
, a
nd
hos
pi
tal
i
t
y
; inv
i
ta
tio
ns to go
v
er
nm
ent of
fic
ial
s; our app
ro
ac
h to
fa
cil
i
tat
ion p
ay
m
ent
s; an
d cont
r
ol
s a
r
oun
d the a
ppo
intm
ent of
dis
tr
i
bu
tor
s an
d ag
ent
s
, cu
sto
ms b
ro
ker
s
, an
d fr
ei
ght fo
r
w
ar
der
s.
Our et
hic
s d
ash
bo
ar
d en
ab
le
s us to inter
rog
ate our r
e
gis
ter of
gif
ts
, me
al
s and enter
t
ainm
ent in an e
f
fe
c
ti
v
e and u
se
fu
l w
ay.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
34
The T
ask Fo
rce on Cl
ima
te
-r
el
ated F
in
anci
al Di
sc
los
ure
s
(
TCF
D) hel
ps to imp
ro
ve tr
an
sp
are
nc
y o
n cli
mate
-
rel
a
ted
ri
sk
s an
d opp
or
tuniti
es b
y pr
ov
idi
ng an in
ter
na
tion
ally
reco
gni
se
d fr
a
mew
or
k to gui
de co
mpa
nie
s in ma
ki
ng
more effec
tive climate-related financial disclosures.
O
v
er th
e l
as
t thr
e
e ye
ar
s w
e h
av
e dem
on
st
r
ate
d our c
ontin
ue
d
comm
it
ment to al
i
gnin
g w
ith t
he r
e
comm
en
dati
on
s of the T
CF
D
thr
ou
gh ex
p
and
ing a
nd up
dat
ing o
ur as
s
e
ss
ment o
f cl
imate
-
re
l
ated r
i
sk
s an
d opp
or
tun
it
ie
s. T
hi
s on
goi
ng s
y
s
tem
atic
as
s
es
sm
ent h
as al
lo
w
ed us to i
de
ntif
y the p
otent
ial r
i
sk
s an
d
oppor
tunities that climat
e change presents to our
busines
s,
ena
bl
ing u
s to bet
te
r pr
ep
ar
e fo
r an unc
er
tai
n fu
tur
e an
d en
sur
e
that o
ur bu
sin
es
s s
tr
ateg
y is r
e
sil
ie
nt to fu
tur
e c
han
ge
s
.
Mitigating our risk
s and realising our opp
or
tunities
Our di
v
er
sif
ied p
or
t
fo
li
o, r
es
po
nsi
v
en
es
s to n
ew m
ar
ket
re
qui
re
ment
s a
nd g
eo
gr
a
phi
c spr
e
ad of a
s
set
s m
ea
n that
our b
usin
e
ss i
s w
ell p
r
ep
ar
ed to r
e
sp
ond to c
li
mate r
i
sk
s
in the s
ho
r
t term
.
Ho
we
ve
r
, the fu
tur
e i
s unce
r
tain
, s
o in F
Y
2
0
2
2 we h
av
e an
d w
ill
conti
nue to t
ake ac
t
ion to s
t
re
ng
the
n our l
ong
er
-ter
m c
l
imate
re
si
li
ence
, imp
lem
enti
ng me
as
ur
e
s to re
duc
e our e
xp
os
ur
e to the
potent
ial c
li
mate r
i
sk
s we h
av
e id
enti
fi
ed an
d en
sur
ing that S
mi
ths
is be
s
t p
osi
tio
ne
d to re
al
is
e ou
r opp
or
tun
iti
e
s. F
or ex
amp
le:
Climate-re
silient asset
s:
Joh
n Cr
an
e ha
s und
er
ta
ken ana
ly
sis to
ide
ntif
y f
aci
li
tie
s v
ul
n
er
a
ble to t
he ef
fec
t
s of cl
im
ate cha
ng
e and
has p
ut i
n pl
ac
e mon
ito
r
ing a
nd mi
tig
ati
on me
as
ur
es to a
cco
unt
for ex
tre
me w
eat
her
. For ex
am
ple
, one s
ite ha
s be
en r
el
oc
ate
d
as a r
e
sult o
f re
cent i
ns
ur
an
ce cl
aims c
aus
e
d by f
lo
o
ding i
s
sue
s
.
Joh
n Cr
an
e ha
s al
s
o co
ns
ide
re
d th
e r
is
k of ex
t
r
eme w
eat
he
r
during site selection of new facilities
, including consideration
of hur
r
i
c
ane p
ath
s an
d pr
oxi
mit
y to flo
o
d pl
ain
s
.
Mitigating supply chain risks:
Ac
ro
s
s al
l the di
v
i
sio
ns
, si
ngl
e
so
ur
ce mate
r
ial
s are a
vo
ide
d w
he
re
v
er po
s
sib
le an
d ins
te
ad
,
an app
r
oa
ch of s
ou
rc
ing f
r
om mu
ltip
le
s si
tes i
n mult
ipl
e
locations acros
s the globe is tak
en. This increas
es resil
ience
of the s
upp
ly ch
ain a
gain
s
t r
egi
ona
l dis
r
upt
ion c
au
se
d b
y
ex
treme weather event
s.
Keeping c
ost
s down:
T
o mitig
ate th
e r
isk
s a
s
so
cia
ted w
it
h r
is
ing
re
s
our
ce c
os
t
s
, the P
r
oc
ur
em
ent tea
m ha
s ev
al
uate
d Smi
th
s
Detection’
s
supply chain and
tr
anspor
tation process
es for
eff
icienc
y impro
vements
. This included implementing measure
s
suc
h as op
timi
s
atio
n of sp
ac
e in fr
e
ight th
r
oug
h re
us
ab
le s
ta
ck
ing
so
lut
ion
s an
d ex
plo
r
ing l
oc
a
li
se
d bu
sin
es
s m
od
el
s to r
e
duc
e
produc
t tr
anspor
t
ation distances.
Strengthening oversight and owner
ship:
Our n
ew
l
y for
m
ed
Sc
ien
ce, S
us
t
ain
abil
i
t
y & E
xcelle
nce (
S
SE
) C
omm
it
te
e of
the B
oa
r
d, ch
air
e
d by D
ame A
nn Do
w
li
ng
, is r
es
po
nsi
ble f
or
over
seeing the Group
’
s approach to science,
sustainabilit
y,
and excellence. The over
sight covers R&D,
commercial
isation
and s
us
ta
ina
bil
it
y st
r
ate
gie
s
, inc
ludi
ng th
e imp
ac
t o
f cl
imate
cha
nge a
nd r
el
ate
d met
r
ic
s a
nd t
ar
get
s
. We al
so ap
poi
nted a Ch
ief
Sus
t
ain
abi
li
t
y O
f
fic
er to th
e E
xe
cu
ti
ve C
om
mit
tee.
Th
e S
SE ov
er
s
e
es t
he f
ol
lo
w
ing
:
–
Pr
i
or
i
tis
ing n
e
w pr
od
uc
t de
v
elo
pme
nt pr
og
r
am
me
s w
ho
se
comm
er
ci
al su
cce
s
s w
ill d
el
i
ve
r re
v
enu
e gr
ow
th an
d
cor
r
e
sp
on
ding s
us
t
ain
abil
i
t
y p
er
for
m
anc
e ben
ef
it
s to an
d
through our customer
s. T
his includes energ
y ef
ficienc
y, GHG
reduc
tions and renew
able energy pr
oduction and use.
–
Del
i
v
er
in
g Net Ze
ro G
HG em
is
si
on co
mmi
tme
nt
s for S
c
ope
s 1, 2
and 3 a
nd as
s
o
ciate
d SB
T
s thr
ou
gh en
er
g
y ef
f
ic
ien
c
y, ren
e
w
abl
e
ene
rg
y, and o
ptim
isi
ng pr
o
duc
t d
e
sign a
nd o
ur sup
ply c
hai
ns
.
TCFD recommended d
isclosures
At th
e tim
e of pub
l
ic
atio
n of th
is A
nn
ual Re
por
t, t
he G
ro
up ha
s
made climate-related financial
disclosure
s consistent
with the
TCFD’
s recommendations and Recommended Disclosures
pur
s
uant to L
i
s
ting R
ule 9
.8
.6 (
R
) (
8
). T
he fo
llo
w
in
g ta
ble
summ
ar
i
se
s ou
r dis
cl
osu
re
s a
nd r
efer
s to whe
re f
ur
th
er det
ai
l
on cl
im
ate-
r
el
ated f
in
anc
ial d
is
clo
sur
e
s c
an b
e fou
nd in th
is
Annu
al Repor
t.
In com
plet
ing t
his w
or
k the Gr
ou
p mad
e us
e of TCF
D g
uid
anc
e
mater
i
al in
clu
din
g the TC
F
D tech
nic
al s
upp
lem
ent o
n the u
se
of scenari
o analysis
, TCFD Guidance on Metric
s
, T
ar
get
s, and
T
ra
nsi
ti
on P
l
ans
, a
nd th
e TCF
D G
uid
ance f
or A
ll S
e
c
tor
s
.
Th
e Gr
o
up is co
ntin
uing to m
ake pr
o
gr
es
s a
cr
os
s al
l fo
ur pil
l
ar
s o
f
the r
e
com
men
dati
on
s and i
s wo
r
k
ing to f
ur
the
r al
ign an
d be m
or
e
tr
a
nsp
ar
ent i
n it
s di
sc
lo
sur
e
s in l
ine w
i
th th
e ev
ol
v
ing g
uid
el
ine
s to
bet
te
r com
muni
c
ate the w
or
k t
hat i
s bei
ng do
ne inte
r
na
lly.
In F
Y
2
0
2
3 w
e inten
d to und
er
take a m
ater
ia
li
t
y ass
e
s
sme
nt to
dem
on
st
r
ate th
at Sm
ith
s ha
s con
si
der
e
d the m
os
t im
por
t
ant
topi
c
s in E
S
G, inc
lu
ding c
l
imate r
i
sk an
d opp
or
tun
it
ie
s.
We ar
e al
s
o de
ve
lo
pin
g a Gr
oup
-
w
id
e st
r
ate
gic r
e
sp
on
se to
ene
rg
y t
r
a
nsi
tio
n in r
el
at
ion to o
ur o
w
n tar
g
et
s
, the i
mpl
ic
at
ion
s
on cu
r
re
nt cu
sto
mer
s and en
d us
e mar
kets
, and o
pp
or
tuni
tie
s
for Smiths
.
In F
Y
2
0
2
3 w
e inten
d to pr
ep
ar
e an
d pub
li
sh a de
tai
led
, s
ta
nda
lon
e
TCF
D do
cu
ment to e
nhan
ce o
ur dis
cl
os
ur
es to c
ov
er th
e
se
mat
ter
s and t
ake acco
unt of p
ro
gr
e
s
s.
T
A
S
K F
O
RC
E
O
N
C
LI
M
A
TE
-
REL
A
T
ED
F
I
NAN
C
IAL
DI
S
CLO
S
URE
S
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
35
GOV
ERNA
NCE
Disclose Smiths gover
nance
around climate-related risks
and oppor
t
unities.
a.
Des
cr
ib
e the B
oar
d’
s over
s
ight o
f cli
mate
-
rel
a
ted r
is
k
s and o
ppo
r
tunitie
s
.
The Boar
d overs
ees the Group’
s
approach to sustainabilit
y,
including clima
te change. The Board has
ov
er
s
ight of o
ur Gr
o
up and d
i
v
isi
ona
l st
r
ate
gie
s
, r
ec
ei
v
ing r
e
gul
a
r upd
ate
s on pe
r
for
ma
nce an
d de
ep
di
ve
s into di
v
i
sio
nal s
t
r
ate
g
y on a r
ot
atio
nal b
as
is
. Cl
imate c
han
ge o
pp
or
tuni
tie
s ar
e inte
gr
ated into
our s
tr
ategic p
l
anni
ng p
ro
ce
s
se
s
, in
clu
din
g our E
S
G f
r
a
me
wo
r
k an
d E
S
G s
tr
ate
gic p
r
io
r
it
ie
s. T
h
e S
SE
Co
mmi
t
tee of t
he B
oa
r
d is r
es
po
nsi
ble f
or o
ver
see
ing t
he Gr
o
up’
s app
r
oa
ch to s
cie
nce, s
us
t
aina
bil
it
y
and e
xcel
len
ce. T
h
e ov
er
s
ight co
v
er
s R&D, co
mme
rc
ial
is
at
ion a
nd su
s
ta
inab
il
it
y str
ateg
y, inclu
ding
the im
pa
c
t of cl
im
ate cha
ng
e and r
el
a
ted met
r
ic
s a
nd t
ar
ge
t
s. T
h
e Au
dit & R
is
k Co
mmi
t
tee of t
he
Bo
ar
d is r
e
sp
on
sib
le for r
e
v
ie
w
ing a
nd a
s
se
s
sin
g th
e ef
fe
c
ti
v
ene
s
s of r
i
sk ma
na
gem
ent
, inc
ludi
ng
cl
imate r
i
sk in t
he bu
sin
es
s
. T
he r
e
su
lt
s of ou
r annu
al a
ss
e
s
sme
nt of cl
im
ate cha
nge r
isk
s and
opp
or
tun
iti
es a
re r
e
por
ted to t
he A
udi
t & Ri
sk C
omm
it
te
e.
–
Se
e B
oa
rd g
ov
er
n
an
ce mo
del p
a
ge 5
7
–
Se
e E
S
G go
v
er
n
ance a
nd o
ve
r
si
ght mo
del p
a
ge 2
9
–
Se
e E
nter
pr
ise Ri
sk Ma
na
gem
ent (
ER
M) p
ro
ce
s
s p
age 4
6
–
Se
e B
oa
rd a
c
ti
v
i
t
y p
ag
e 6
0
–
Se
e S
S
E Co
mmi
t
tee Re
po
r
t pag
e 8
9
–
Se
e ou
r E
S
G fr
ame
wo
r
k pa
ge 2
4
–
Se
e ou
r E
S
G st
r
ate
gic p
r
io
r
it
ie
s pa
ge 2
7
–
Se
e St
akeh
ol
der
s and S1
72 St
ateme
nt pa
ge 4
1
b.
D
es
cr
ib
e ma
nag
eme
nt’
s rol
e in as
s
es
s
ing an
d ma
nagi
ng cl
ima
te
-r
el
ated r
i
sk
s
and oppor
tunities
Th
e E
xe
cu
ti
v
e Co
mmi
t
tee i
s r
es
po
nsi
ble fo
r th
e Gr
oup’s appr
oa
ch to su
s
ta
inab
il
it
y
, inc
lud
ing c
li
mate
cha
nge
. Cl
imate
-r
e
l
ated r
i
sk is r
e
por
ted a
nd m
ana
ge
d in th
e s
ame w
a
y as ot
her r
isk
s in the b
us
ine
s
s
.
O
v
er an
d abo
v
e this
, t
he r
e
sult
s o
f our an
nua
l as
s
es
s
ment of c
l
imate c
han
ge r
i
sk an
d opp
or
tun
iti
es a
r
e
re
po
r
ted to the E
xecu
ti
ve C
om
mit
tee and inte
gr
ated into our s
tr
ategic p
l
ann
ing p
r
oce
s
s
es
, in
cl
udin
g
our E
S
G s
tr
ategic p
r
io
r
it
ie
s. O
ur Gr
o
up an
d di
v
isi
on
al s
tr
ate
gic r
e
v
ie
w an
d pl
an
ning p
r
oc
es
s
e
s con
sid
er
and r
e
sp
ond to c
l
imate
-r
el
a
ted op
po
r
tuni
tie
s as p
ar
t of ou
r di
v
isi
on
al s
tr
ate
gic p
l
ann
ing p
r
oce
s
s
es a
nd
our E
S
G f
r
a
me
wo
r
k an
d E
S
G st
r
ate
gic p
r
io
r
it
ie
s. T
o al
ign d
ec
isi
on
-ma
ki
ng an
d ow
n
er
s
hip of o
ur E
S
G
go
al
s
, su
s
ta
inab
il
it
y metr
i
c
s for
m p
ar
t of th
e Smi
th
s ann
ual an
d lo
ng
-ter
m in
cent
i
ve p
l
ans
.
–
Se
e E
nter
pr
ise Ri
sk Ma
na
gem
ent (
ER
M) p
ro
ce
s
s p
age 4
6
–
Se
e E
S
G go
v
er
n
ance a
nd o
ve
r
si
ght mo
del p
a
ge 2
9
–
Se
e ou
r E
S
G fr
ame
wo
r
k pa
ge 2
4
–
Se
e ou
r E
S
G st
r
ate
gic p
r
io
r
it
ie
s pa
ge 2
7
–
Se
e O
ur bu
sine
s
s m
ode
l pa
ge 9
–
Se
e O
ur st
r
ate
g
y an
d meg
atr
en
ds p
ag
e 10
–
Se
e Rem
uner
ation & P
eo
ple C
om
mit
tee Repo
r
t pag
e 7
5
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
36
STR
A
TEG
Y
Disclose the actual
and p
otenti
al imp
a
c
t
s of
climate-related risks and
opp
or
tun
iti
es o
n the G
r
oup’s
bus
ine
s
s
, st
r
ate
g
y and
financial pl
anning, w
here
such information is
material
.
a.
Des
cr
ib
e the c
lim
ate
-r
el
ate
d r
isk
s an
d op
por
tuni
tie
s the or
ga
nis
a
tion ha
s id
enti
fie
d
over th
e sho
r
t, med
ium an
d lon
g ter
m
.
We con
duc
t a s
y
s
tem
atic a
s
se
s
sm
ent on a
n annu
al b
as
is to id
enti
f
y phy
si
ca
l and t
r
an
si
tio
n r
is
ks
and o
pp
or
tuni
tie
s o
ve
r the s
hor
t, m
ed
ium an
d lo
ng ter
m
. Fur
the
r
, our Pur
pos
e and c
omm
itm
ent
to sus
t
ain
abil
i
t
y l
ea
der
ship ar
e r
efl
ec
te
d in ou
r intent to pr
ior
it
is
e E
S
G pe
r
for
man
ce at S
mit
hs
.
We ther
ef
or
e pl
a
ce ad
dit
io
nal em
ph
asi
s on ou
r re
s
pon
s
e to me
gatr
en
ds in o
ur s
ec
to
r
s w
hic
h r
el
ate to
the e
ner
g
y tr
ansi
ti
on ag
en
da an
d ov
er
all r
edu
c
tio
n of w
as
te an
d en
er
g
y us
e.
–
Se
e th
is y
ear
’s rep
or
ting o
n Ke
y tr
ansi
tio
n r
isk
s a
nd op
po
r
tuni
tie
s an
d Ke
y ph
ys
ic
al r
i
sk
s
and o
pp
or
tuni
tie
s p
ag
e 4
0
–
Se
e Mi
tig
atin
g our r
isk
s and r
e
al
isin
g our o
pp
or
tuni
ti
es p
ag
e 3
5
–
Se
e O
ur bu
sine
s
s m
ode
l pa
ge 9
–
Se
e O
ur st
r
ate
g
y an
d meg
atr
en
ds p
ag
e 10
b.
D
es
cr
ib
e the i
mpa
c
t of c
lim
ate
-r
el
ate
d r
isk
s an
d op
por
tunit
ies o
n the o
rg
ani
sa
tion’
s
busines
ses
, str
ategy and financial pl
anning.
We inco
r
po
r
ate t
he cl
im
ate-
r
el
ate
d r
isk
s a
nd op
po
r
tuni
tie
s w
e ide
ntif
y into ou
r bus
ine
s
s pl
a
nnin
g
and s
tr
ateg
y de
ve
lop
ment p
r
oc
es
s
e
s at bot
h the d
i
v
isi
on an
d Gr
oup
-
le
ve
l
, inc
ludi
ng o
ur E
S
G
fr
amew
or
k and s
tr
ate
gic p
r
io
r
it
ie
s. To align d
eci
sio
n-
mak
in
g and o
w
n
er
sh
ip of ou
r E
S
G go
al
s
,
sus
t
ain
abil
i
t
y m
etr
i
c
s for
m p
ar
t of th
e Smi
th
s ann
ual an
d lo
ng
-ter
m in
cent
i
ve p
l
ans
.
–
Se
e Mi
tig
atin
g our r
isk
s and r
e
al
isin
g our o
pp
or
tuni
ti
es o
n pa
ge 3
5
–
Se
e ou
r E
S
G fr
ame
wo
r
k pa
ge 2
4
–
Se
e ou
r E
S
G st
r
ate
gic p
r
io
r
it
ie
s pa
ge 2
7
–
Se
e E
nv
ir
on
ment p
er
for
m
anc
e pa
ge 3
0
–
Se
e O
ur st
r
ate
g
y an
d meg
atr
en
ds p
ag
e 10
–
Se
e Chi
ef E
xe
cu
ti
v
e Of
fi
cer
’s rev
ie
w of t
he y
ear p
ag
e 1
1
–
Se
e Rem
uner
ation & P
eo
ple C
om
mit
tee Repo
r
t pag
e 7
5
c.
Des
cr
ib
e the r
es
ili
ence o
f the or
ga
nis
a
tion’
s str
ate
g
y
. T
aking i
nto con
sid
er
a
tion
dif
f
ere
nt cl
imate
-
re
l
ated s
cena
r
ios
, in
clu
ding a 2
°C o
r lo
wer s
cena
r
io.
Th
e s
cen
ar
io
s we u
se to a
s
se
s
s th
e r
es
il
ienc
e of ou
r bus
ine
s
s alw
a
y
s inc
lu
de co
nsi
der
ation o
f a 2
°C
or lo
w
er s
cen
ar
io
. T
his y
ear w
e h
av
e ex
pan
de
d th
e r
an
ge of s
ce
nar
i
os w
e as
s
e
ss o
ur
s
el
ve
s ag
ain
st
and h
av
e dis
cl
os
ed o
ur r
a
ting
s of th
e r
es
ili
enc
e of our b
us
ine
s
s ag
ain
st o
ur id
enti
f
ied p
otent
ial
r
isk
s
. W
hi
l
s
t cl
ima
te r
isk i
s not c
ons
ide
r
ed a p
r
inc
ipa
l r
is
k for S
mit
hs
, f
ail
ur
e to mee
t st
akeh
ol
der
exp
e
c
tat
ion
s on E
S
G o
bl
igat
io
ns is c
on
sid
er
ed a p
r
inc
ip
al r
is
k
. T
his i
s ad
dr
es
s
ed t
hr
ou
gh Gr
o
up
st
r
ate
g
y and o
ur E
S
G s
tr
ategic pr
ior
it
ie
s
.
–
Se
e S
ce
nar
i
o ana
ly
si
s – buil
din
g upo
n pr
e
v
iou
s wo
r
k on p
ag
e 3
9
–
Se
e Ke
y tr
ansi
tio
n r
is
k
s and o
pp
or
tuni
tie
s an
d Ke
y ph
y
sic
al r
isk
s and o
pp
or
tuni
tie
s p
ag
e 4
0
–
Se
e P
r
inc
ip
al r
i
sk
s pa
ge 49
–
Se
e ou
r E
S
G st
r
ate
gic p
r
io
r
it
ie
s pa
ge 2
7
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
37
RISK M
A
NAGEMENT
Dis
cl
os
e ho
w Sm
ith
s id
enti
f
ie
s,
asse
ss
es and manages
climate-related risks
.
a.
Des
cr
ib
e the o
rg
ani
sa
tion’
s proce
s
se
s f
or id
enti
f
y
in
g an
d as
se
s
sin
g
clim
ate
-
rel
ate
d r
is
ks
.
Cli
mate
-r
el
ate
d r
i
sk is r
ep
or
ted an
d ma
nag
ed i
n the s
a
me w
a
y as oth
er r
i
sk
s in th
e bu
sine
s
s
.
O
v
er an
d abo
v
e this
, w
e co
ndu
c
t a s
y
ste
mati
c sc
ena
r
io an
aly
s
is exe
rc
is
e on an a
nnu
al ba
si
s to
ide
ntif
y an
d as
s
es
s c
li
mate
-r
el
ate
d r
is
k
s and o
pp
or
tuni
tie
s
. T
his u
se
s t
he fo
llo
w
in
g s
ta
ge
d pr
oc
es
s:
i. Un
der
sta
nd r
e
ven
ue s
tr
e
ams a
s ba
s
e c
as
e; ii. Cl
im
ate sc
ena
r
io an
aly
s
is – hi
gh-
le
ve
l r
isk a
nd
opp
or
tun
it
y mapp
ing c
ond
uc
ted o
v
er t
wo ph
ys
ic
al an
d t
wo tr
a
ns
iti
on cl
im
ate sc
ena
r
io
s ov
er t
wo
time h
or
i
zon
s (m
ed
ium
- and l
ong
-ter
m
); ii
i. Inte
gr
ate
d f
inan
cia
l imp
ac
t a
s
se
s
sm
ent
s – r
i
sk
s and
opp
or
tun
iti
es i
dent
if
ie
d to unc
ov
er th
e f
ina
nci
al dr
i
v
er
s t
hat w
il
l info
r
m and s
hap
e f
ut
ur
e inv
e
st
ment
;
and i
v. T
est
ing a
nd v
al
i
dati
on – w
or
k
sh
op
s con
duc
te
d at Gr
o
up and d
i
v
isi
ona
l le
ve
l to ref
in
e the r
isk
and o
pp
or
tuni
t
y m
app
in
g by r
e
v
ie
w
ing p
otenti
al mate
r
ial
i
t
y o
ve
r tim
e, id
enti
f
y potenti
al mi
tig
atio
n
mea
su
re
s to inf
or
m s
tr
ateg
y, and ref
in
e met
r
ic
s an
d t
ar
get
s
.
–
Se
e E
RM pr
o
ce
s
s pa
ge 4
6
–
Se
e th
is y
ear
’s appr
oa
ch in S
c
ena
r
io an
aly
s
is - bu
ildi
ng up
on p
re
v
io
us w
or
k o
n pa
ge 3
9
b. De
sc
r
ibe t
he or
gan
is
ati
on’
s proce
ss
e
s for m
ana
gin
g cli
mate
-
rel
a
ted r
is
k
s
Cli
mate
-r
el
ate
d r
i
sk is r
ep
or
ted an
d ma
nag
ed i
n the s
a
me w
a
y as oth
er r
i
sk
s in th
e bu
sine
s
s
. A
s par
t
of our a
nnua
l sc
ena
r
io an
aly
s
is exe
rc
is
e, w
e al
s
o id
enti
f
y key ac
ti
ons to m
it
igate p
otenti
al cl
im
ate-
re
l
ated r
i
sk
s an
d to re
al
is
e ou
r ide
ntif
i
ed op
po
r
tuni
tie
s
. S
ee s
t
age
d pr
o
ce
s
s de
s
cr
ib
ed a
bo
ve
.
–
Se
e E
RM pr
o
ce
s
s on p
ag
e 4
6
–
Se
e Mi
tig
atin
g our r
isk
s and r
e
al
isin
g our o
pp
or
tuni
ti
es o
n pa
ge 3
5
c.
Des
cr
ib
e ho
w pro
ce
ss
e
s for i
den
tif
yin
g, a
ss
e
s
sing
, an
d man
agin
g cl
imate
-
re
l
ated r
i
sk
s
are integrated into the organisation’
s over
all risk management.
We inco
r
po
r
ate t
he cl
im
ate-
r
el
ate
d r
isk
s w
e id
enti
f
y into our E
RM pr
o
ce
s
s.
–
Se
e Mi
tig
atin
g our r
isk
s and r
e
al
isin
g our o
pp
or
tuni
ti
es o
n pa
ge 3
5
–
Se
e E
RM pr
o
ce
s
s on p
ag
e 4
6
ME
T
RI
C
S
A
ND
TA
R
G
E
T
S
Disclos
e the metric
s
and t
ar
g
et
s us
ed to
as
s
es
s an
d ma
nag
e r
ele
v
ant
climate-related risks and
oppor
t
unities, wh
ere such
information is mat
erial
.
a.
Disc
los
e th
e metr
i
c
s us
ed b
y the or
ga
nis
a
tion to a
s
se
s
s cli
mate
-
rel
a
ted r
is
ks a
nd
opp
or
tuniti
es in l
ine w
it
h it
s s
tr
ate
g
y and r
i
sk ma
nag
eme
nt pr
oce
ss
e
s.
We re
por
t ag
ain
s
t our en
v
ir
on
ment
al m
etr
ic
s annual
ly. T
his y
ea
r we h
av
e al
s
o un
der
t
aken a ga
p
anal
y
sis of o
ur me
tr
ic
s a
nd t
ar
ge
t
s to ide
ntif
y key a
re
as w
h
er
e w
e ca
n imp
ro
v
e our m
oni
tor
in
g of
cl
imate
-r
el
ated per
for
mance
. We ha
ve b
uilt a m
or
e ag
gr
es
s
i
ve G
HG r
ed
uc
ti
on t
ar
get t
r
aj
ec
to
r
y to
mee
t S
cien
ce
-B
as
e
d T
arg
et
s an
d ene
rg
y e
f
f
ic
ienc
y and ne
w p
ro
du
c
t com
mer
ci
al
is
ati
on t
ar
get
s i
nto
our in
cent
i
ve ar
ra
ng
eme
nt
s for F
Y
2
0
2
3.
Our c
li
mate
-r
el
ate
d met
r
ic
s a
nd t
ar
get
s n
o
w incl
ud
e:
–
T
otal en
er
g
y us
e
–
Ene
r
g
y ef
f
ic
ien
c
y t
ar
ge
t, an
d ne
w pr
o
duc
t c
omm
er
cia
li
s
atio
n r
ev
enu
e ta
r
get p
er pr
o
gr
a
mme
,
both l
in
ked to r
emu
ner
ation fo
r F
Y
2
0
2
3 A
I
P
–
Sc
op
e 1 & 2 emi
s
sio
ns ab
so
lu
te re
duc
t
ion t
ar
g
et l
inked to r
em
une
r
ati
on fo
r F
Y
2
0
2
3 LTIP
–
Sc
op
e 1 & 2 emi
s
sio
ns no
r
ma
li
se
d to r
ev
en
ue t
ar
get l
inke
d to r
emun
er
ation fo
r F
Y
2
0
2
2 L
T
IP
–
Se
e E
nv
ir
on
ment p
er
for
m
anc
e on p
ag
e 3
0
–
Se
e Rem
uner
ation & P
eo
ple C
om
mit
tee Repo
r
t on pa
ge 7
5
b.
D
is
clo
se S
cop
e 1
, Sc
ope 2 a
nd, i
f app
ro
pr
ia
te, Sco
pe 3 GH
G emi
ss
ion
s,
and th
e rel
a
ted r
is
k
s.
We dis
cl
os
e our S
co
pe 1 a
nd 2 em
is
si
ons a
nnu
all
y. We have c
r
eate
d a ba
se
li
ne in
ve
ntor
y of ou
r Sc
op
e
3 emis
s
ion
s w
hic
h w
ill b
e v
al
id
ated b
efor
e b
ein
g sub
mit
ted to the S
BT
i i
n F
Y
2
0
2
3.
–
Se
e E
ner
g
y u
se a
nd GH
G (
S
cop
e 1 & 2
) e
mis
si
on
s on p
ag
e 3
0
–
Se
e S
co
pe 3 inf
or
m
atio
n on p
ag
e 3
0
–
Se
e E
nv
ir
on
ment p
er
for
m
anc
e on p
ag
e 3
0
c.
Des
cr
ib
e the t
ar
ge
t
s us
ed b
y the or
ga
nis
at
ion to m
ana
ge cl
imate
-
re
l
ated r
i
sk
s an
d
opp
or
tuniti
es an
d pe
r
f
or
ma
nce ag
ain
st t
ar
ge
t
s.
We re
por
t on o
ur pr
o
gr
es
s a
gai
ns
t ou
r env
ir
o
nme
nta
l ta
rg
et
s an
nual
ly. T
his y
ea
r we h
av
e al
s
o
und
er
taken a g
ap an
aly
si
s to id
enti
f
y key add
iti
on
al met
r
ic
s a
nd t
ar
get
s w
h
ich c
oul
d imp
ro
v
e
mon
itor
ing of our c
li
mate
-r
el
a
ted p
er
for
ma
nce
. S
ee m
etr
ic
s and ta
r
get
s d
es
cr
ibed a
bo
ve
.
–
Se
e E
nv
ir
on
ment p
er
for
m
anc
e on p
ag
e 3
0
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
38
Scenario ana
lysis – bui
lding upon p
rev
ious work
Dur
i
ng F
Y
2
0
21, clim
ate-
r
el
ate
d phy
s
ic
al an
d tr
ansi
tio
n r
isk
s a
nd
opp
or
tun
iti
es w
er
e a
ss
e
s
se
d un
der t
wo c
lim
ate s
cen
ar
io
s and
time p
er
i
od
s
, and t
he ac
t
ion
s th
at cou
ld b
e ta
ken to mit
iga
te r
isk
s
and c
ap
tur
e op
po
r
tunit
ie
s we
r
e inco
r
p
or
ate
d into o
ur st
r
ate
gic
plannin
g proce
ss
es
.
Our m
os
t r
ec
ent sc
ena
r
io a
naly
s
is exe
rc
is
e, co
ndu
c
ted in Q
3
F
Y
2
0
2
2, b
uil
ds up
on th
e as
s
e
ss
ment o
f pr
ev
i
ou
s ye
ar
s
, an
d se
ek
s
to pr
ov
i
de a m
or
e in-
d
epth u
nd
er
s
t
and
ing an
d co
mp
ar
is
on o
f
physic
al and tran
sition risk
s and oppor
tunities. A wider r
ange
of scenarios w
as considere
d, including t
wo tr
ansition scenar
ios
and t
wo ph
y
sic
a
l r
isk s
ce
nar
i
os
.
Physical scenar
ios
For t
he ph
y
sic
al s
ce
nar
ios
, the Inte
r
go
ver
nment
al P
an
el on
Cli
mate Ch
ang
e’
s (IP
CC) Repr
e
s
ent
ati
v
e Co
nce
ntr
at
ion P
at
hw
a
y
(R
CP
) 4
.5 an
d R
CP
8
.5 s
ce
nar
i
os w
er
e us
e
d.
RCP4.5
–
RCP4
.5 r
e
pr
e
se
nt
s an inter
m
ed
iate emi
s
sio
ns s
ce
nar
i
o w
her
e
by
cl
imate p
ol
ic
ie
s ar
e imp
lem
ented to l
im
it GH
G emi
s
sio
ns
.
–
In the 2
0
4
0
s, g
lob
al m
ean s
ur
fa
ce temp
er
atur
e is pr
o
jec
te
d
to incr
e
as
e b
y 1
.
1
°C. B
y th
e 2
0
8
0
s
, thi
s r
eac
he
s 1.4
°C.
RCP8.5
–
RCP
8.5 i
s a hig
h-
em
is
sio
ns s
ce
nar
i
o and r
e
pr
e
se
nt
s a fu
tur
e
w
her
e le
v
el
s of g
re
en
hou
se g
as (
GHG) e
mis
s
ion
s cont
inu
e to r
is
e
thr
ou
gho
ut t
he 21st cent
ur
y w
it
h minim
al p
ol
ic
y inter
venti
on
.
A
s s
uch
, GH
G emis
s
ion
s w
er
e as
su
me
d to conti
nue to i
ncr
e
as
e
thr
ou
gho
ut t
he ce
ntur
y, wi
th
out s
ign
if
ic
ant inte
r
vent
ion
s
.
–
In the 2
0
4
0
s, g
lob
al m
ean s
ur
fa
ce temp
er
atur
e is pr
o
jec
te
d
to incr
e
as
e b
y 1
.8
°
C. B
y t
he 2
0
8
0
s
, th
is r
ea
che
s 3
.7°C.
Across both scenarios:
–
Some regions w
ill exper
ience increased annual rainfall
,
w
hil
s
t ot
her r
e
gio
ns w
il
l r
ece
i
ve le
s
s an
nua
l r
ainf
a
ll
.
–
Regi
ons a
re l
ikel
y to ex
per
ience s
e
as
ona
l dif
fer
enc
es i
n
temperature and precipit
ation patterns
. For example, ann
ual
pr
ec
ipi
tat
ion i
n the U
K is pr
o
jec
te
d to inc
r
ea
se b
ut th
is i
s due
to pr
oje
c
ted w
et
te
r w
inter
s
, in
cr
ea
sin
g the r
isk of f
lo
odi
ng; in
contr
as
t, s
umme
r
s ar
e p
ro
je
c
ted to b
eco
me dr
ier
, incre
as
ing
the r
i
sk of dr
o
ught
.
–
E
x
t
re
me w
eat
her e
v
ent
s su
ch a
s fl
oo
din
g, w
il
df
ir
e
s and d
r
oug
ht
ar
e li
kely to be
co
me mo
r
e se
ve
r
e and m
or
e f
re
qu
ent
.
–
Th
e di
f
fe
re
nce b
et
wee
n the t
wo s
cen
ar
i
os is p
ar
tic
ul
ar
ly ev
id
ent
in the p
r
oje
c
ti
ons to
w
ar
d
s the e
nd of t
he ce
ntur
y, whi
ch ar
e
much m
or
e ex
tre
me un
der R
CP
8.5
.
T
r
ansition scenar
ios
For the transiti
on scenario
s, the International Energ
y Agenc
y
’
s
(IE
A
) Wor
l
d Ene
r
g
y Ou
tlo
ok S
us
t
ain
abl
e De
ve
lop
ment S
c
ena
r
io
(
SD
S) a
nd St
ate
d Pol
ic
ie
s S
cen
ar
i
o (
S
T
EP
S) we
re u
s
ed
.
2021 Stated Policies Scenario (STEPS)
–
Th
is s
cen
ar
i
o ref
le
c
t
s cu
r
r
ent p
ol
ic
y
-s
et
t
ing b
a
se
d on s
ec
to
r-
by
-s
ec
to
r as
s
e
ss
ment o
f the s
pe
ci
fi
c po
li
cie
s in p
l
ace, a
s w
ell
as th
os
e th
at ha
ve b
een a
nn
ounc
ed b
y go
ve
r
nm
ent
s ar
o
und
the w
or
l
d.
–
It aim
s to pr
o
v
id
e a ben
chm
ar
k to a
s
se
s
s th
e potent
ial
achi
ev
em
ent
s (
and l
im
it
ati
ons
) of r
ec
ent de
v
elo
pme
nt
s in en
er
g
y
and climat
e polic
y:
–
Ris
ks to o
il s
ec
ur
i
t
y r
em
ain
–
Gas mar
kets are changing r
apidly
–
Ele
c
tr
i
ci
t
y m
ov
e
s to the h
ea
r
t of mod
er
n en
er
g
y s
ec
ur
i
t
y
2021 Sustainable Development Scenario (SDS)
–
Th
e as
s
umpt
ion
s on p
ubl
ic h
eal
th an
d the e
co
nom
y ar
e th
e
s
ame a
s in th
e S
T
EP
S
–
Full a
li
gnm
ent w
it
h the P
a
r
is A
gr
ee
me
nt to hol
d th
e r
is
e in
glob
al a
ve
r
a
ge tem
per
atur
e to “w
el
l bel
o
w 2 °C … an
d pu
r
sui
ng
ef
fo
r
ts to l
imi
t (
r
is
es
) to 1.5 °C”
–
It w
or
k
s b
ac
k
w
ar
d
s fr
om t
he a
chie
v
eme
nt of su
st
ain
abl
e en
er
g
y-
re
l
ated g
oa
l
s – uni
v
er
sal a
cce
s
s to af
f
or
dab
le, r
el
ia
ble a
nd
mo
der
n e
ner
g
y s
er
v
ic
es b
y 2
0
30
, a sub
st
ant
ial r
e
duc
ti
on in a
ir
pol
lu
tio
n, a
nd ef
fec
ti
v
e ac
ti
on to co
mb
at cl
ima
te chan
ge – a
nd
sho
w
s w
hat w
ou
ld b
e r
equ
ir
ed to m
eet th
em
–
Major tran
sfor
mation of the g
lobal ener
gy s
ys
tem
–
Net Zer
o b
y 2
0
70
–
Sur
g
e in cl
ean e
ner
g
y p
ol
ic
ie
s (
pr
om
oti
on of hy
dr
o
gen
, bi
og
as
,
biomethane and Carbon Capture, Utilis
ation and St
or
age
(CCUS)
across sectors)
–
Sta
gg
er
ed i
ntr
od
uc
ti
on of C
O
2
pr
ices
–
Fos
si
l fu
el s
ubsi
die
s ph
as
e
d out b
y 2
0
2
5 in ne
t-impo
r
ting
count
r
ie
s an
d by 2
0
35 in n
et-e
xp
or
ting c
ount
r
ie
s
A
s w
el
l as a
s
se
s
sin
g r
is
k
s and o
pp
or
tuni
tie
s un
der a g
re
ater
numb
er of s
ce
nar
i
os
, thi
s ye
ar
’s ass
e
s
sme
nt incl
ud
ed d
eta
ile
d
eng
ag
eme
nt w
ith e
ac
h of the f
our d
iv
i
si
ons to e
nab
le a ‘
de
ep di
v
e’
into is
su
es s
pe
ci
fi
c to ea
ch an
d to bet
ter unde
r
s
ta
nd th
e Gr
ou
p-
lev
el i
mpl
ic
at
ion
s of th
es
e r
i
sk
s and o
pp
or
tuni
ti
es
.
In ad
dit
ion
, w
e hav
e as
s
e
s
se
d th
e le
vel o
f eac
h r
is
k and
opp
or
tun
it
y in mor
e det
ai
l to bet
te
r und
er
s
t
and t
he p
otenti
al
fi
nan
cial i
mp
ac
t
s of th
e id
enti
fi
ed r
i
sk
s an
d op
por
tu
nit
ie
s.
Al
tho
ugh a q
uant
it
ati
v
e as
s
e
ss
ment w
as not un
der
ta
ken, r
isk and
opp
or
tun
it
y r
atin
gs w
er
e def
in
ed in l
in
e w
it
h the G
ro
up an
d di
v
is
ion
lev
el r
isk re
gi
ste
r
s to al
lo
w a bet
ter unde
r
s
ta
ndin
g of th
e sc
a
le
of ide
ntif
i
ed r
i
sk
s an
d opp
or
tun
iti
es
, e
nab
lin
g Sm
ith
s to pr
i
or
i
ti
se
actions for risk mitigation.
Th
e
se a
ddi
ti
ona
l ac
ti
v
i
tie
s al
lo
w us to b
et
ter u
nde
r
s
t
and t
he
nuan
ce
d natu
re o
f r
isk
s a
nd op
po
r
tuni
tie
s po
s
ed ac
r
os
s ou
r
bus
ine
s
s
, at Gr
ou
p and d
i
v
isi
on le
ve
l
, und
er a w
id
er r
ange of f
u
tur
e
sce
nar
ios
. Th
is ul
tim
ately en
abl
e
s us to imp
r
ov
e our r
e
sil
ie
nce
,
by a
ddr
e
s
sin
g r
is
ks a
cr
os
s o
ur po
r
tf
ol
io an
d en
sur
i
ng th
at
opp
or
tun
iti
es a
re i
nco
r
po
r
ate
d w
it
hin ou
r bus
ine
s
s s
tr
a
teg
y.
Pr
i
or
i
t
y r
isk
s and o
pp
or
tuni
tie
s ar
e s
umm
ar
is
e
d in the t
ab
le
s
bel
ow a
cr
os
s t
he r
a
ng
e of sc
ena
r
io
s.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
39
Key phy
si
ca
l r
isk
s an
d op
por
tunit
ies
O
v
er th
e me
dium an
d lo
nge
r ter
m
, key p
hy
sic
a
l r
isk
s r
el
ate to the pote
ntial ef
fec
t th
at pr
oj
ec
te
d inc
r
ea
se
s in th
e f
re
qu
enc
y and s
ev
er
i
t
y
of ex
t
re
me w
eat
her e
v
ent
s co
uld h
av
e on o
ur as
s
et
s an
d sup
ply c
hai
n. T
he
s
e r
is
k
s be
com
e mo
re s
e
ve
re u
nde
r the h
igh
-
emi
ss
ion
s
RCP
8
.5 scen
ar
io.
Ho
we
ve
r
, we hav
e al
so ide
nti
fi
ed s
ev
er
al opp
or
tuni
ti
es w
h
er
e ea
ch of o
ur di
v
is
ion
s c
an w
or
k to d
ev
elo
p inn
ov
a
ti
ve s
ol
ut
ion
s to our
customers’ climat
e-rel
ated challenges.
RCP4.5 physic
al scenario
RCP
8.5 physic
al scenario
204
0s
medium term
2080s
long term
204
0s
medium term
2080s
long term
Risks
Le
v
el o
f r
i
sk c
a
te
g
or
i
e
s: Ve
r
y Lo
w – Lo
w – M
od
e
r
at
e – H
ig
h – Ve
r
y H
ig
h
Da
ma
g
e to Gr
o
up a
s
s
et
s f
ro
m ex
tre
me w
e
at
he
r ev
en
t
s:
In
cr
e
as
e
d co
s
t
s an
d r
e
sul
ti
ng
re
v
en
ue l
os
s
e
s du
e to r
ep
ai
r an
d in
sur
anc
e co
st
s.
Low
Mo
der
ate
Low
High
T
emperature regulation requirements during heatw
aves and cold
snaps:
Health and
s
afet
y r
is
k
s fr
o
m ov
e
r
he
at
in
g, h
igh
er o
pe
r
a
tin
g co
s
t
s f
r
om in
cr
e
as
e
d ai
r co
nd
it
io
nin
g
an
d he
ati
ng
. C
ap
it
al c
os
t
s a
s
s
oc
iat
ed w
i
th r
et
r
of
it
tin
g as
s
et
s to p
r
ov
i
de s
u
f
f
ic
ie
nt
temperatur
e control
s.
Low
Low
Low
Low
Da
ma
g
e to key s
up
p
ly ch
ai
n a
s
se
t
s f
ro
m ex
tre
me w
ea
th
e
r ev
en
t
s:
L
os
s of r
e
v
en
ue du
e
to di
sr
u
pti
on
/del
ay o
f ma
nu
f
ac
t
ur
i
ng p
r
oc
es
s
e
s
.
Mod
er
a
te
High
Mo
de
r
ate
High
Disruption to transpor
tation and d
istr
ibution network
s from extreme weather
events:
Lo
s
s of r
e
ve
nu
e du
e to de
l
ay
s g
et
t
in
g pr
o
du
c
t
s to m
ar
ket
, c
au
s
ed b
y s
upp
ly c
ha
in
disruption.
Mod
er
a
te
High
Mo
de
r
ate
High
Oppor
tunities
Grow
th in
remote sensing
market:
Inc
r
ea
s
ed r
e
v
en
ue f
r
om g
ro
w
th in d
em
an
d
for s
a
tel
l
ite te
c
hn
ol
og
y f
or e
nv
i
ro
nm
en
ta
l mo
ni
tor
ing an
d tr
ack
in
g.
Mod
er
a
te
High
Mo
de
r
ate
Ver
y Hi
gh
Inc
r
ea
s
ed d
em
a
nd f
or c
oo
l
in
g s
y
st
em
s:
I
nc
re
a
se
d r
e
ve
nu
e f
ro
m in
cr
e
as
e
d de
ma
nd f
or
residential and domestic cool
ing sy
stems, dri
ven by ongoing var
iation in global temperatures
.
Low
Mo
der
ate
M
ode
r
ate
Mo
de
r
ate
Key tr
an
si
tion r
i
sk
s and o
pp
or
tunitie
s
Ke
y tr
a
nsi
ti
on r
is
k
s ide
ntif
i
ed o
ve
r the n
ex
t 3
0 y
e
ar
s pr
imar
il
y re
s
ult f
r
om inc
r
ea
sin
g cos
t
s a
ss
o
ciate
d w
it
h the p
r
ic
e and a
v
ail
a
bil
it
y of
re
s
our
ce
s an
d com
pl
ian
ce w
i
th inc
r
ea
se
d r
epo
r
ting r
e
quir
em
ent
s
, alt
ho
ugh i
ncr
e
as
ed c
omp
eti
tio
n al
s
o p
os
es a r
isk
.
Ne
w and e
mer
gi
ng m
ar
ket
s pr
e
s
ent us w
i
th si
gni
fi
c
ant op
por
tu
nit
ie
s for gr
o
w
th, w
i
th de
man
d for e
ner
g
y ef
fic
ient p
r
odu
c
t
s an
d se
r
vi
ce
s
increasing greatly as we transition to a lower carb
on global economy
.
ST
EP
S transition scenar
io
SDS tran
sition scenario
20
30
medium term
2050
long term
2030
medium term
2050
long term
Risks
Increased regulations and pricing on GHG
emissions:
Greater cost
s associated with
emissions reduction, monitoring and repor
ting obligations.
Low
Mo
der
ate
M
ode
r
ate
Mo
de
r
ate
Increased transpor
t
ation c
ost
s:
Gre
ate
r f
uel c
os
t
s d
ue to i
nc
r
ea
s
ed p
r
ic
in
g on G
HG
emissions.
Mod
er
a
te
M
od
er
a
te
M
od
er
ate
High
Cost and availabilit
y of resources:
Incr
e
as
e
d pr
i
ce a
nd r
e
du
ce
d av
a
il
a
bi
li
t
y of cr
i
tic
a
l r
a
w
mate
r
ia
l
s
. L
im
it
ed s
up
pl
y of ma
ter
i
al
s and co
mp
o
ne
nt
s co
ul
d le
ad t
o pr
i
ce v
ol
a
til
i
t
y a
nd
produc
tion constr
aints
.
Mod
er
a
te
M
od
er
a
te
M
od
er
ate
M
od
er
ate
New and emerging
competitors:
Redu
ce
d a
cce
s
si
bl
e ma
r
ket d
ue to i
nc
re
a
se
d
competition in Net
Zero/energ
y eff
icienc
y spaces
, such as
methane leakage.
Mod
er
a
te
Low
Hi
gh
Low
Oppor
tunities
Grow
th in aviation/aerospace energy efficienc
y market:
Increased re
venue from
development of new produc
ts for aviation
/aerospace, such as energ
y efficien
c
y detection
produc
t
s and solutions
.
Mod
er
a
te
High
High
Ve
r
y Hig
h
Grow
th in energy efficienc
y product
s market:
Increa
sed rev
enue from Smiths eff
icienc
y
produc
t
s and ser
v
ices, par
ticular
ly methane det
ec
tion and remediation. Increase
d
inv
e
s
tm
ent f
or n
e
w tec
hn
ol
og
ie
s e
.g
., c
ar
bon c
a
ptu
r
e, u
tl
is
a
ti
on an
d s
to
r
a
ge (
CC
US
) a
nd
hydrogen.
High
M
od
er
ate
Ver
y H
ig
h
Mo
der
ate
Grow
th in power
industr
y energy efficienc
y:
Increased revenue from development of
emerging low-
car
bon emis
sion technologies to reduce electr
icit
y tr
ansmission los
ses
.
High
Ve
r
y Hig
h
High
M
od
er
ate
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
40
Unders
tanding the needs and prio
rities of our key
stakeholder
s and building s
trong and positi
ve relations
hips
is critical to our success. Stakeholder engagement takes
pl
ace a
cro
ss t
he Gr
oup, o
per
ational
ly by ou
r di
v
isi
onal
team
s and m
ana
gem
ent
, at G
rou
p leve
l
, and b
y the B
oar
d
.
In a bus
ine
s
s a
s di
ve
r
si
fi
ed a
s Smi
th
s
, eng
ag
eme
nt w
ith m
os
t
st
akeh
ol
der g
ro
ups i
s ha
ndl
ed lo
c
al
ly b
y man
ag
eme
nt, or b
y
spe
ci
al
is
t Gr
ou
p team
s. T
h
e Bo
ar
d m
aint
ain
s ov
er
s
ight a
nd
only e
ng
age
s di
re
c
tl
y if th
er
e ar
e is
s
ue
s w
hic
h tr
ul
y w
ar
r
ant it
s
inv
olv
em
ent or w
h
er
e it c
a
n add v
alue. T
hi
s is p
ar
tic
ul
ar
l
y tr
u
e of
eng
ag
eme
nt w
ith c
us
tom
er
s a
nd su
ppl
ie
r
s (t
he ma
jor
it
y of w
h
om
ar
e uniq
ue to a sp
ec
if
ic d
i
v
isi
on
) bu
t is al
so usu
al
ly th
e ca
s
e for
go
ver
nment
s
, r
egu
l
ator
s a
nd o
ur lo
c
al com
mun
iti
es
.
The outcomes of stakeholder engagement, including concer
ns
r
ai
se
d, a
re r
ep
or
ted to t
he B
oar
d a
nd B
oa
r
d Co
mmi
t
tee
s on a
re
gul
a
r ba
si
s thr
ou
gh ou
r usu
al pr
o
ce
s
se
s th
at sup
po
r
t infor
m
ed
decision-making. Discussion and decision-making by the
Boar
d
take
s th
e v
ie
w
s of key s
t
akeho
ld
er
s i
nto acco
unt
, in or
de
r to ba
l
anc
e
thei
r ne
ed
s, a
nd ef
fec
ti
v
ely b
uil
d the s
us
t
aina
ble
, lon
g-te
r
m su
cce
s
s
of the G
r
oup
.
Dur
i
ng th
e ye
ar en
de
d 31 July 2
02
2
, the B
o
ar
d ha
s ac
ted i
n
acco
r
dan
ce w
it
h S
ec
t
ion 172(1) of the Co
mp
anie
s A
c
t 2
0
0
6 w
i
th
eac
h Dir
e
c
tor ac
t
ing i
n the w
a
y th
ey c
ons
ide
r
, in goo
d fa
ith
, w
oul
d
be m
os
t li
kely to pr
o
mote th
e suc
ce
s
s of the C
om
pa
ny fo
r the
ben
ef
it of i
t
s me
mbe
r
s as a w
h
ol
e. In do
in
g so, t
he D
ir
ec
tor
s had
re
gar
d to t
he inte
re
s
t
s of oth
er s
t
akeho
ld
er
s
, w
hil
st m
aint
aini
ng
and o
ve
r
s
eei
ng hi
gh s
ta
nda
r
ds of b
usi
ne
s
s con
duc
t
. O
ur app
r
oa
ch
to k
ey st
akeholders and st
akeholder consider
ations that in
fluence
d
Bo
ar
d di
sc
us
si
ons a
nd th
e ou
tcom
es o
f the
s
e dis
cu
s
sio
ns a
re
outlined below.
Fur
ther e
xam
ple
s of h
ow s
t
akeh
ol
der
s vie
w
s ha
ve b
e
en br
ou
ght into
the b
oa
r
dr
oo
m ca
n be f
oun
d in our G
o
ve
r
nan
ce Rep
or
t on p
age
s 6
0
a
n
d
61.
KEY PEOPLE PRIORITIES
–
Health,
safety and
well-be
ing
–
Pu
r
po
s
e an
d cul
tur
e
–
Ethical behav
iour
–
Rew
a
r
d an
d re
co
gn
it
ion
–
Employe
e retention and
engagement
–
T
alent
developm
ent
–
Div
ersi
t
y,
equit
y and
inclusion
–
Sus
tainabil
it
y
–
Communit
y contr
ibution
BOARD AND MANAGEMENT ENGAGEMENT ACTIVITIES
–
Management
engages with colleagues through regular town hall meeti
ngs, Company news
upd
ate
s an
d thr
o
ug
h our o
nl
in
e too
l
s w
h
er
e co
ll
ea
gu
es c
a
n sh
ar
e th
eir v
i
ew
s
. S
e
e pa
ge 3
2
for more inf
or
mation
–
Non-executi
ve Director
s under
take work
force engagement activi
ties, including in-person
site v
i
si
t
s an
d at
te
nd
anc
e at co
ll
ea
gu
e me
etin
gs
, f
or
u
ms an
d e
ve
nt
s
. S
ee p
ag
e 6
0 fo
r
more information
–
T
he B
oa
r
d and Re
mu
ner
atio
n & Pe
op
le C
omm
it
tee re
ce
i
ve r
e
gul
a
r up
date
s f
r
om t
he Ch
ief
People Of
f
icer on employee engagement, re
w
ard, talent, and diver
si
t
y and inclusion
–
T
he A
udi
t & R
isk C
om
mi
t
te
e is pr
o
v
id
ed w
ith up
date
s o
n ‘S
pe
ak O
ut
’
, our c
onf
i
dent
ial
repor
ting hotline, and other
repo
r
t
s and statistic
s rel
ating to the Group’
s
ethical policie
s
and per
for
mance
–
T
he B
oa
r
d re
ce
i
ve
s h
ea
lth a
nd s
af
et
y r
e
po
r
ts at e
v
er
y Bo
ar
d m
e
etin
g
–
T
he B
oa
r
d al
s
o r
e
cei
v
e
s re
gu
l
ar up
d
ate
s on th
e Gr
o
up’s pens
ion a
r
r
a
ng
em
ent
s
OUTCOMES OF ENGAGEMENT IN FY2022
–
Gi
v
en th
e imp
or
t
anc
e of, an
d fo
cu
s on
, Pe
opl
e in t
he S
mit
hs V
alu
e En
gin
e, t
he B
oa
r
d
approv
ed the evolution of the Remuneration Commit
tee into
the Remuneration &
People Commit
tee
–
Ba
s
ed o
n fe
edb
a
ck f
r
om co
ll
ea
gu
e
s thr
o
ugh t
he M
y S
a
y en
ga
ge
me
nt sur
v
ey, th
e Bo
ar
d
w
as s
upp
or
ti
v
e of th
e l
au
nch o
f our n
e
w Smi
th
s L
ea
de
r
sh
ip B
eha
v
io
ur
s
, w
h
ich a
r
e
sho
w
n o
n pa
ge 2
8
, an
d th
e fo
cu
s on di
v
er
sit
y and in
cl
usi
on
, w
it
h an en
ha
nce
d ge
nd
er
di
ve
r
si
t
y mea
sur
e a
dd
ed a
s a K
P
I de
s
cr
i
be
d on p
a
ge 2
3
–
T
he B
oa
r
d sup
po
r
ted th
e de
-
r
is
kin
g of t
he T
I Gr
o
up P
ens
io
n S
ch
eme b
y w
a
y of a £
6
4
0m
bul
k an
nui
t
y bu
y-
in
. T
he B
oa
r
d co
nsi
de
r
ed an
d de
c
li
ne
d the r
e
qu
e
st f
r
om t
he S
I Pe
ns
ion
Scheme T
rus
tees to pay enhanced member benefit
s
PE
OPLE
OUR APPROACH
Our p
eo
pl
e ar
e v
it
al to th
e su
cce
ss
of Smiths.
We aim to at
t
r
ac
t and re
ta
in th
e ver
y b
es
t
by cr
e
atin
g an en
v
ir
onm
ent f
or co
ll
ea
gue
s
ba
se
d on r
e
sp
ec
t
, pe
r
so
na
l gro
w
th,
re
co
gnit
ion a
nd d
ev
elo
pm
ent of t
al
ent
,
and a s
en
se o
f be
lon
gin
g and p
ur
p
os
e.
Our c
ult
ur
e is a p
ow
er
ful a
s
se
t and
empower
s and enables our people to
del
i
ve
r our P
ur
p
os
e. I
t is s
upp
or
ted b
y our
Valu
es a
nd o
ur Le
ad
er
s
hip B
eha
v
io
ur
s
which influence ever
y decision, guide
ho
w we b
eha
ve
, and h
el
p make S
mit
hs
a pl
ac
e w
her
e p
eop
le a
re h
app
y an
d
pr
oud t
o wo
r
k.
READ MORE
Governance
SEE MORE
Sustainability at Smiths Report
P
60
S
T
A
K
EHO
L
DER
S
A
N
D SE
C
TI
O
N 1
72
S
TAT
E
M
E
N
T
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
41
KEY CUSTOMER PRIORITIES
–
Pro
duct innov
ation, qualit
y and ser
v
ice
–
Env
ironmental per
formance of produc
ts
to hel
p c
us
tom
er
s meet t
hei
r ow
n
envir
onmental goal
s
–
Long-ter
m str
ategic relationships
–
Mut
ua
l con
fi
de
nce a
nd r
e
sp
ec
t
–
Ethi
c
al b
eh
av
io
ur a
nd d
ata p
r
ote
c
tio
n
BOARD AND MANAGEMENT ENGAGEMENT ACTIVITIES
–
Management teams engage with customer
s through for
mal feedback ac
tiv
itie
s such
as su
r
ve
y
s
, qua
r
ter
ly b
usi
ne
s
s r
ev
i
e
w
s and s
en
io
r tea
m me
eti
ng
s w
ith ke
y c
us
tom
er
s
.
T
he
y al
s
o in
tegr
ate info
r
ma
l fe
edb
a
ck f
r
om co
nv
er
sat
ion
s ha
d w
i
th cu
s
tom
er
s b
y ou
r
oper
ational and field-b
ased teams
–
Management
teams use Key
Account Managemen
t struc
tures and Customer
Rel
at
ion
sh
ip Ma
na
gem
ent to
o
l
s ac
r
os
s o
ur bu
sin
e
s
s to de
li
v
er t
ime
ly an
d hi
gh
-
qua
li
t
y
re
s
po
ns
e
s to our c
us
to
me
r
s
. We aim to a
pp
ly b
es
t p
r
ac
t
ic
es
, d
ev
el
op s
kil
l
s a
nd
capabil
ities
, and deliv
er continuous improvement in execution to
enhance the over
all
customer exper
ience
–
Cus
to
mer
s and m
ar
ket c
hal
le
ng
es a
r
e con
si
de
r
ed a
s pa
r
t of the m
ont
hly d
i
v
isi
on
al
pe
r
f
or
m
an
ce up
da
tes to t
he E
xecu
ti
v
e C
omm
it
te
e w
i
th a de
ep d
i
ve e
v
er
y qu
ar
ter
–
Di
v
is
io
nal p
er
fo
r
ma
nce r
e
po
r
ts ar
e s
ent t
o the B
o
ar
d on a q
ua
r
ter
ly b
as
is an
d de
ep d
i
ve
s
on di
v
i
si
ona
l pe
r
for
m
anc
e and s
t
r
ate
g
y ar
e h
eld o
n a r
ot
ati
on
al b
asi
s
–
T
he B
oa
r
d mo
nit
or
s p
er
for
mance i
nd
ic
ato
r
s r
el
at
in
g to cu
sto
me
r s
ati
sf
a
c
ti
on su
ch a
s
On
-
Ti
me
-I
n-
Ful
l (OT
I
F
) and C
os
t of Po
o
r Qu
al
it
y (CO
P
Q
)
–
In F
Y
2
0
2
2 th
e Au
di
t & Ri
sk C
om
mi
t
tee w
a
s up
da
ted o
n pr
o
duc
t q
ual
i
t
y a
nd c
us
tom
er
s
in di
v
i
sio
na
l r
is
k de
ep di
v
e
s
. S
ee p
ag
e 7
3 fo
r mo
re i
nfo
r
mat
io
n
OUTCOMES OF ENGAGEMENT IN FY2022
–
T
he B
oa
r
d app
r
ov
e
d the c
r
ea
tio
n of th
e S
ci
enc
e, S
us
t
ain
abi
li
t
y & E
xcel
le
nce (
S
SE
)
Co
mmi
t
te
e. T
h
e Co
mmi
t
te
e o
ve
r
s
ee
s th
e Gr
o
up’s appr
oa
ch to s
us
t
ain
ab
il
it
y and to
ne
w pr
o
duc
t d
e
ve
lop
me
nt, b
ot
h key p
r
io
r
it
ie
s fo
r our c
us
to
me
r
s
. S
ee p
ag
e 8
9 fo
r
more information
–
T
he B
oa
r
d app
r
ov
e
d our d
i
v
is
ion
al s
tr
ategi
e
s, i
nc
lud
ing a
n in
cr
ea
s
ed f
oc
us o
n
commercialising hig
h-v
alue green t
echnologies that ena
ble sustainabilit
y per
formance
for a
nd th
r
ou
gh ou
r cu
s
tome
r
s
–
A
s p
ar
t of th
e Bo
ar
d e
v
a
luat
io
n, t
he B
oa
r
d r
eq
ue
s
ted g
re
ate
r v
isi
bil
i
t
y o
f mac
r
o
con
di
ti
on
s, e
x
te
r
na
l mar
kets an
d th
e imp
a
c
t of op
po
r
tuni
ti
es a
r
is
ing f
r
o
m tec
hno
lo
g
y
–
T
he S
S
E Co
mm
it
te
e r
eq
ue
s
ted m
or
e o
v
er
s
ight o
n pr
o
duc
t idea
tio
n s
tr
en
gt
h an
d ear
ly-
stage new product development to
ensure that t
he Group is appropriately
focused on
megatrends and new
markets
–
T
he B
oa
r
d con
si
de
re
d inf
l
a
tio
n an
d sup
pl
y cha
in p
re
s
s
ur
es a
nd t
he im
p
ac
t on p
r
ic
in
g
and margin
s
–
T
he B
oa
r
d w
as s
at
is
f
ie
d th
at th
e cu
ltu
re o
f th
e Gr
ou
p is ap
pr
o
pr
i
atel
y foc
us
e
d on
customer needs and
that customer
risk
s are being
managed appropriately
CUS
TOMERS
OUR APPROACH
Meeting cus
tomer need
s and exceeding
their expe
c
tations w
ith pr
oduc
t
s,
qual
i
t
y an
d s
er
v
ice. T
h
e w
ay w
e con
duc
t
bus
ine
s
s an
d pa
y at
te
ntio
n to the t
hin
gs
that m
at
ter t
o the
m – for e
xam
pl
e, eth
ic
s
and environment
al per
for
mance – is a
fu
nda
ment
a
l par
t of ou
r op
er
a
ting m
od
el
and o
ur Val
ue
s.
We recognis
e that stron
g and endurin
g
custom
er rel
ationship
s will sus
tain
Smiths into the futur
e.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
42
KEY SUPPLIER PRIORITIES
–
Long-ter
m relation
ships with Smiths
–
Mut
ua
l con
fi
de
nce a
nd r
e
sp
ec
t
–
Ethical behav
iour
–
Retur
n for al
l pa
r
tner
s
–
Innov
ation par
tner
ships
BOARD AND MANAGEMENT ENGAGEMENT ACTIVITIES
–
Man
ag
em
ent te
am
s me
et r
eg
ul
ar
ly wi
th s
upp
l
ier
s to re
v
ie
w pe
r
for
m
anc
e,
dis
c
us
s ne
w b
usi
ne
s
s op
po
r
tuni
ti
es
, s
et g
oa
l
s an
d w
or
k o
n imp
r
ov
em
ent a
re
a
s. F
or o
ur
higher value
and
/or
more complex products
, managemen
t engages with our su
pplier
s
at th
e hig
he
s
t le
ve
l to pa
r
tne
r on R&D, ne
w p
ro
du
c
t int
ro
du
c
ti
on
, qua
l
it
y and co
nti
nuo
us
improv
ement projec
ts
–
Updates on
suppliers and supply
chain are in
cluded in divisional per
formance updat
es
to the E
xecu
ti
v
e C
om
mit
tee
–
Di
v
is
io
nal p
er
fo
r
ma
nce r
e
po
r
ts ar
e s
ent t
o the B
o
ar
d on a q
ua
r
ter
ly b
as
is an
d
de
ep di
v
e
s on di
v
i
si
on
al p
er
for
m
anc
e an
d st
r
ate
g
y ar
e d
is
cu
s
se
d b
y th
e Bo
ar
d o
n a
rot
atio
nal ba
sis
–
In F
Y
2
0
2
2 th
e Au
di
t & Ri
sk C
om
mi
t
tee w
a
s up
da
ted o
n sup
pl
y cha
in r
i
sk an
d eth
ic
s a
nd
compliance in
each div
ision
OUTCOMES OF ENGAGEMENT IN FY2022
–
Each div
ision developed and implemen
ted appropriate contingency plans to mitiga
te
the i
mp
ac
t of s
up
ply c
ha
in ch
al
len
ge
s a
r
is
ing f
r
om t
he C
O
V
ID
-
19 pand
emi
c, t
he R
us
si
a
/
Ukr
aine c
onf
l
ic
t
, tr
ansp
or
t
ati
on an
d l
ab
ou
r is
su
e
s
, and o
the
r ch
al
len
ge
s
–
T
he B
oa
r
d w
as s
upp
o
r
tiv
e of t
he on
go
in
g pr
oj
ec
t to m
it
ig
ate th
e r
is
k fr
o
m hig
h-
dependency sole source suppliers
–
Man
ag
em
ent ap
pr
o
ve
d th
e im
ple
me
nta
tio
n of a s
ou
rc
e-
to
-p
ay s
ol
ut
io
n w
it
h a sin
gle
po
r
tal a
cce
s
s fo
r our s
upp
l
ier b
a
se w
h
ic
h aim
s to imp
r
ov
e pr
o
cu
r
eme
nt ef
fic
ien
c
y
and effec
ti
venes
s
–
T
he B
oa
r
d w
as s
upp
o
r
tiv
e of t
he r
ef
r
es
hin
g of th
e Gr
o
up’s Supp
li
er C
od
e of C
on
duc
t
dur
i
ng t
he y
ea
r to inc
r
ea
se f
oc
us o
n E
S
G mat
ter
s
, inc
lu
din
g en
v
ir
on
ment
a
l po
li
ci
es
and per
for
mance
SUPPLI
ERS
OUR APPROACH
Develo
ping mutually benef
icial
rel
ationship
s with our suppl
ier
s and
building re
silience, qualit
y and e
f
fic
ienc
y
acr
os
s o
ur su
ppl
y cha
in is a f
un
dam
ent
al
cont
r
ibu
tor to o
ur cu
s
tom
er of
f
er an
d th
e
long-term sustainability of Smit
hs.
We ope
r
ate a to
ta
l v
alu
e sup
ply c
hai
n
app
ro
ac
h tha
t con
si
der
s a
ll a
sp
ec
t
s of a
supplier
’
s contrib
ution to gener
ate and
ca
ptu
re v
a
lue
. T
his i
ncl
ud
es et
hic
al a
nd
envir
onment
al matter
s
, including GHG
re
duc
tion
, and a
li
gnm
ent w
it
h our Va
lu
es
,
continuous improvement and risk
.
KEY COMMUNITY PRIORITIES
–
S
afe a
nd ef
fec
ti
v
e op
er
atio
ns
–
Green technolog
y, environmental
per
fo
rm
ance, resp
ec
ting
natural resource
s
–
Fair employment, skill
s develop
ment,
and prosper
it
y
–
Ethical behav
iour
–
Direc
t engagement – education
and c
om
mun
it
y supp
or
t
BOARD AND MANAGEMENT ENGAGEMENT ACTIVITIES
–
Our te
am
s ac
r
os
s th
e w
or
l
d en
ga
ge di
r
ec
t
ly w
it
h th
eir l
oc
a
l com
mun
it
ie
s th
ro
ug
h
fundr
ai
sing, char
it
able giv
ing
, and educatio
n initiativ
es
–
Science, T
echnolog
y
, Engineer
ing and Maths (ST
EM
) education initiative
s are par
ticular
ly
imp
or
ta
nt to ma
na
ge
ment a
nd to o
ur co
l
le
agu
e
s as a w
a
y to sh
ar
e th
eir p
a
s
sio
n for
eng
ine
er
ing an
d en
cou
r
a
ge y
ou
ng p
eo
pl
e to con
si
de
r c
ar
ee
r
s in t
he s
ec
t
or
. Many o
f our
site
s r
un ST
E
M pr
o
gr
amme
s
–
T
he B
oa
r
d is p
ro
v
id
e
d w
it
h upd
ate
s on t
he el
em
ent
s of t
he G
r
oup’s ope
r
at
ion
s w
hi
ch
imp
ac
t t
he w
i
der c
om
mun
it
y, inclu
din
g th
e Gr
ou
p’
s Gl
ob
al T
a
x Str
ateg
y. Th
is d
es
c
r
ib
es o
ur
approach to the
responsible management
of tax affair
s to
enhance long-t
erm shareholder
v
alu
e w
hil
e co
ntr
ib
u
tin
g to pub
l
ic e
xp
en
di
tur
e an
d th
e we
lf
a
re o
f our l
oc
a
l co
mmu
nit
ie
s
–
T
he A
udi
t & R
isk C
om
mi
t
te
e re
ce
i
ve
s r
e
gul
a
r re
po
r
ts o
n is
s
ue
s r
a
is
ed t
hr
ou
gh t
he G
ro
up’s
‘Speak Out’ rep
or
ting hotlin
e which enables repor
ting of matters af
fec
ting communities
suc
h as s
a
fet
y
, eth
ic
al b
eh
av
i
our
, hum
an r
i
ght
s a
nd m
od
er
n s
l
av
er
y
–
At o
ur Ju
ly L
ea
de
r
sh
ip Su
mmi
t s
eni
or l
ea
de
r
s to
ok ti
me o
ut to v
ol
unte
er at f
i
v
e
London charitie
s
–
Co
ll
ea
gu
es a
r
e re
gu
l
ar
l
y inv
o
lve
d in a
nd s
upp
or
t lo
c
al c
omm
uni
t
y eve
nt
s
OUTCOMES OF ENGAGEMENT IN FY2022
–
T
he B
oa
r
d app
r
ov
e
d the G
r
ou
p’
s ne
w E
S
G s
tr
ategi
c pr
i
or
i
ti
es w
h
ich o
ut
l
ine o
ur fo
c
us on
new product development programmes w
hich deliver sustainabilit
y per
formance and on
deli
ver
ing our environment
al commitments
–
T
he Gr
o
up d
ona
ted to t
he Re
d Cr
os
s to s
up
po
r
t the pe
op
le o
f Ukr
aine
. Sm
it
hs a
l
s
o
matched
colleague donations
–
In F
Y
2
0
2
2 w
e be
ga
n a pil
ot fo
r a ne
w co
mmu
ni
t
y e
ng
ag
eme
nt pr
o
gr
a
mm
e – Imp
r
ov
i
ng
Our Wo
r
l
d – w
hic
h w
il
l inc
lu
de p
ai
d vo
lunte
er
ing tim
e fo
r col
le
a
gue
s
C
OMMUNI
TIE
S
A
ND
S
O
C
IE
T
Y
OUR APPROACH
We aim to im
pr
ov
e our w
or
l
d b
y
contrib
uting posi
tiv
ely to our communities
and s
o
ciet
y in gen
er
a
l
.
Smi
ths p
r
odu
c
t
s an
d s
er
v
ice
s sup
po
r
t
cri
tical glob
al industr
ies w
here we are
pio
ne
er
in
g pr
og
re
s
s in s
af
et
y, ef
f
ic
ien
c
y,
and environment
al per
for
mance.
Our o
pe
r
ati
on
s ar
oun
d the w
or
ld pl
ay a
ben
ef
ici
al r
ole i
n lo
c
al ec
ono
mie
s th
ro
ugh
job creation and skills development;
procur
ement and generating ta
x revenue
s;
oper
ating safely,
env
ironmentally
res
ponsibly and ethic
ally; and dire
c
t
engagement. Healthy and prosper
ous
communitie
s and stron
g rel
ationships ar
e
ali
gne
d w
it
h our Va
lue
s a
nd in
spi
re a
nd
pr
omo
te a se
ns
e of pr
ide an
d ow
ne
r
sh
ip
in our p
e
opl
e.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
43
KEY INVESTOR PRIORITIES
–
Sus
tainable gr
ow
th
–
Shareholder returns
–
Del
i
v
er
i
ng a
gai
ns
t o
ur s
tr
ateg
y
–
Opennes
s and tr
ansparen
c
y
–
Maintaining ef
fec
ti
ve control
s and
managing risk
–
Env
ironment
al per
for
mance and
social impac
t
BOARD AND MANAGEMENT ENGAGEMENT ACTIVITIES
–
T
he B
oa
r
d at
ten
ds t
he A
GM a
nd G
en
er
al Mee
tin
gs w
h
er
e sh
ar
eh
ol
de
r
s ar
e in
v
ite
d to
sub
mi
t que
s
ti
on
s to th
e Bo
ar
d i
n pe
r
s
on an
d r
em
otel
y
–
T
he Ch
ief E
xecu
ti
v
e O
f
f
ic
er an
d th
e Chi
ef F
in
anc
ia
l O
f
f
ic
er ho
s
t r
es
ul
t
s pr
e
se
nt
ati
on
s and Q
&
A
se
s
si
on
s an
d me
et w
it
h a br
o
ad s
pr
e
ad of t
he G
r
oup’s cap
it
al p
r
ov
i
de
r
s th
ro
ug
ho
ut t
he y
ea
r
–
Mem
be
r
s of t
he B
oa
r
d en
ga
ge
d w
it
h inv
e
s
tor
s at t
he C
ap
it
a
l Mar
ket
s Day in N
ov
em
be
r 2
0
21
–
A
na
ly
s
t an
d br
oke
r br
i
ef
ing
s
, and r
e
po
r
ts of m
e
etin
gs w
i
th m
aj
or or p
r
os
pe
c
ti
v
e
sha
r
eho
ld
er
s, ar
e ci
rc
ul
a
ted to D
ir
ec
t
or
s o
ut
s
id
e the f
or
m
al B
oa
r
d me
eti
ng s
ch
ed
ule
–
In F
Y
2
0
2
2 th
e Bo
ar
d s
o
ugh
t sha
r
eho
ld
er f
ee
db
ac
k on th
e b
es
t c
our
se of ac
t
io
n on th
e us
e
of th
e pr
o
cee
d
s fol
lo
w
in
g th
e co
mpl
eti
on of t
he s
a
le of S
mi
th
s Me
dic
al
–
In F
Y
2
0
2
2 th
e Ch
air of t
he Re
mun
er
a
tio
n & Pe
op
le C
om
mi
t
tee m
et w
i
th ou
r top
sharehold
er
s to
discus
s Smiths Remuner
ation Polic
y
–
T
he B
oa
r
d con
si
de
r
s it
s div
i
de
nd p
ol
ic
y and th
e UK P
ens
io
ns A
c
t 2
0
21, pr
io
r to ap
pr
o
v
ing t
he
pa
y
me
nt of a di
v
i
de
nd
OUTCOMES OF ENGAGEMENT IN FY2022
–
T
he B
oa
r
d re
af
fir
m
e
d the G
r
oup’s str
ateg
y in
cl
udi
ng t
he S
mit
hs V
alu
e En
gin
e an
d fo
cu
s
on ou
r thr
e
e pr
ior
i
tie
s of G
r
ow
th
, E
xe
cu
ti
on an
d Pe
op
le
–
T
he B
oa
r
d app
r
ov
e
d ho
ldi
ng a C
ap
it
al M
ar
ket
s Day in N
ov
em
be
r 2
0
21 to up
da
te inv
e
s
tor
s
and o
the
r s
ta
keho
ld
er
s on the G
r
oup’s str
ateg
y an
d me
di
um-
ter
m t
ar
g
et
s
–
T
he B
oa
r
d app
r
ov
e
d the p
l
an
ne
d cr
e
ati
on of a S
us
t
ain
ab
il
it
y at Smi
th
s Rep
or
t
–
T
he B
oa
r
d con
si
de
re
d th
e Gr
o
up’s capi
t
al al
lo
c
ati
on a
nd di
vid
en
d po
l
ic
y i
n li
ght of t
he
ca
sh p
r
oc
ee
ds r
e
cei
v
e
d fr
o
m th
e s
ale of S
mi
th
s Me
di
ca
l
. T
he B
o
ar
d de
ter
m
ine
d th
at th
e
pr
oc
ee
ds w
o
ul
d be sp
l
it b
et
wee
n in
ve
s
tm
ent in g
r
ow
th an
d a si
gni
f
ic
ant r
et
ur
n of c
a
pi
ta
l
to sha
reholder
s through a s
hare repurchase progr
amme
–
T
he B
oa
r
d app
r
ov
e
d the p
a
y
me
nt of th
e f
ina
l di
v
id
en
d fo
r F
Y
2
0
21 an
d the F
Y
2
02
2
interim div
ide
nd
I
NVEST
O
R
S
OUR APPROACH
We are c
omm
it
te
d to op
enn
e
ss a
nd
tr
ansparenc
y with all capital prov
ider
s and
to the ef
fec
t
i
ve ma
na
gem
ent of r
i
sk
.
We repor
t routinely to shareholder
s
thr
ou
gh ou
r for
m
al r
es
ult
s a
c
ti
v
i
tie
s an
d
und
er
take r
eg
ul
ar m
eet
ing
s an
d one
-
of
f
ev
ent
s su
ch a
s C
api
ta
l Mar
ket
s D
ay
s a
nd
inves
tor conferences. Third
-par
t
y analyst
and b
ro
ker br
i
ef
ing
s al
s
o fo
r
m p
ar
t of our
communications s
chedule.
Sha
re
hol
de
r
s ar
e dir
e
c
tly co
ns
ulte
d by t
he
Bo
ar
d on s
uch m
at
ter
s as Remun
er
a
tio
n
Pol
ic
y and v
ie
w
s ar
e so
ught o
n key
corp
or
ate ac
tiv
it
y
.
KEY GOVERNMENT AND REGULATOR PRIORITIES
–
Pr
o
du
c
t and o
pe
r
at
io
nal s
a
fet
y
–
Net Zero and environmental polic
ies
–
Pr
ote
c
ti
on of n
at
ur
a
l re
s
ou
rc
e
s
–
Def
enc
e an
d se
cu
r
it
y
–
Safe and f
air wor
king condi
tions
–
Economic grow
th and pr
osper
it
y
–
T
rade compl
iance
–
Ethical behav
iour
–
Pr
iv
ac
y and data prot
ec
tion
BOARD AND MANAGEMENT ENGAGEMENT ACTIVITIES
–
Our G
r
oup C
o
r
po
r
ate A
f
fa
ir
s te
am b
as
e
d in th
e UK
, US, Eu
r
op
e and A
sia g
uid
e
s an
d
sup
po
r
ts o
ur r
el
at
io
ns
hip
s w
it
h key r
e
gul
a
tor
s
, l
oc
al p
o
li
c
y
m
aker
s
, b
ud
get h
ol
de
r
s an
d
ind
us
tr
y gr
o
ups
. I
t al
so le
ad
s our o
u
tr
ea
ch a
nd r
el
a
tio
ns
hip p
r
og
r
am
me w
i
th g
ov
er
n
me
nt
bo
die
s a
nd r
e
gul
ato
r
s
, w
i
th th
e aim o
f pr
om
oti
ng a d
ee
pe
r und
er
st
and
in
g of th
e Smi
th
s
cul
tur
e a
nd p
ro
du
c
t
s
–
Gover
nment polic
y and re
gulator
s are considere
d during formul
ation of
div
isional str
ategies
–
Upd
ate
s on r
e
gul
ator
y pr
oc
es
s
e
s fo
r app
r
ov
a
l of n
ew p
r
od
uc
t
s ar
e p
r
ov
i
de
d
dur
i
ng di
v
i
si
on
al p
er
for
m
anc
e r
ev
i
ew
s a
t the E
xecu
ti
v
e C
om
mit
tee
OUTCOMES OF ENGAGEMENT IN FY2022
–
Management
approve
d policy guidelines and an
oper
ational framewor
k within which
government relations are conducted. The business sustains harmonious relations with
the g
ov
er
nment
s i
n th
e cou
ntr
i
e
s w
her
e w
e ma
nu
fa
c
tu
r
e and o
pe
r
ate a
nd w
i
th t
he
relev
ant regul
ator
y author
itie
s
–
Polic
y guidance
was issued to the
business to navigate
issues such as the
COV
ID-
1
9
pandemic and the Russia
/
Ukr
aine conflic
t
GO
V
ER
NME
N
T
S
A
ND
REGUL
A
TORS
OUR APPROACH
Go
ver
nment
s an
d r
egu
l
ato
r
s ar
e v
it
al to
our b
usi
ne
s
s as th
ey a
re p
ol
ic
y set
ter
s
and i
nfl
uen
cer
s i
n the m
ar
ket
s w
h
ere
we op
er
ate. We op
er
a
te in so
me h
ighl
y
re
gul
a
ted m
ar
ket
s an
d se
c
to
r
s re
qu
ir
in
g
st
r
ic
t a
dhe
re
nce to l
oc
al a
nd in
ter
na
tio
nal
ind
us
tr
y and p
r
odu
c
t r
egu
l
ati
on
s, a
nd s
tr
on
g
ethical pr
ac
tices
.
We hav
e a mat
ur
e go
ver
n
an
ce env
i
ro
nme
nt
with exacting standards, robust diligence
pr
oce
s
s
es a
nd a p
ro
ac
tiv
e man
ag
eme
nt
app
ro
ac
h to r
edu
ce th
e like
lih
oo
d of an
ethical
, legal or re
gulator
y brea
ch impac
ting
our busine
ss
.
In the n
or
m
al co
ur
s
e of bu
sin
es
s
, w
e
build rel
ationships with gover
nment
s,
pol
ic
ym
aker
s an
d re
gu
l
ator
s a
cr
os
s th
e
wor
ld. We do t
his a
t bot
h Gr
oup a
nd at
di
v
isi
on
al le
vel s
o th
at w
e ar
e abl
e to op
er
a
te
ef
fe
c
t
iv
ely a
nd to e
ns
ure o
ur int
er
es
t
s an
d
tho
se o
f the in
du
st
r
ie
s in w
hi
ch w
e ope
r
ate
are r
ep
r
es
ente
d in d
ec
isi
on
-m
aki
ng
. We al
s
o
contrib
ute our exper
tise on emergin
g
national, regional and global needs.
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
44
Hu
man rights and a
nti
-briber
y
and a
nti-
cor
r
uption
We ar
e com
mit
te
d to up
hol
din
g hig
h ethi
ca
l st
an
dar
d
s w
he
re
ve
r
we o
per
ate aro
und t
he w
or
l
d, a
nd w
e re
qu
ir
e our s
upp
li
er
s an
d
othe
r bus
ine
s
s p
ar
tner
s to do the s
am
e. Br
iber
y an
d cor
rup
tio
n
mat
ter
s are c
ov
er
ed b
y ou
r Co
de of B
usin
e
s
s Ethi
c
s. We a
l
s
o ha
ve
specif
ic policies and pr
ocedure
s rel
ating to
ac
tiv
ities that create
br
ib
er
y an
d cor
rup
tio
n r
isk
s
, an
d an um
br
el
l
a anti
-b
r
ib
er
y and
anti
-c
or
r
u
ptio
n po
li
c
y t
hat pr
o
v
id
es a s
ing
le v
ie
w of ou
r app
ro
a
ch.
Th
e
se p
ol
ic
ie
s co
ver a b
r
oa
d r
a
nge o
f mat
ter
s inclu
din
g the
gi
v
ing a
nd r
ec
ei
v
in
g of gif
ts
, m
eal
s, an
d ho
spi
t
al
it
y; inv
it
at
ion
s
to gov
er
nment of
fici
al
s; o
ur ap
pr
o
ach to f
ac
il
it
ati
on p
ay
m
ent
s;
and c
ontr
ol
s aro
und t
he ap
po
intm
ent of di
s
tr
ib
utor
s and ag
ent
s
,
cus
tom
s br
o
ker
s
, and f
r
ei
ght for
w
a
rd
er
s
. T
h
e Smi
th
s Mod
er
n
Sl
a
ver
y a
nd Hum
an T
r
af
fick
in
g St
ateme
nt and o
ur Hum
an Ri
ght
s
Pol
ic
y can b
e fo
und o
n our w
eb
site
.
Polic
y
due diligence and outcomes
Smi
th
s ope
r
ate
s a co
nfi
de
ntial ‘
Sp
ea
k Ou
t’ r
ep
or
ting h
otl
in
e
to re
po
r
t beha
v
iou
r and a
c
ti
v
i
tie
s th
at br
ea
ch o
ur Valu
e
s, o
ur
pol
ic
ie
s
, or th
e l
aw. T
hi
s is cr
itic
al to a
s
se
s
sin
g th
e ef
fe
c
ti
v
ene
s
s
of our p
ol
ic
ie
s. A
l
l re
po
r
ts to th
e ‘S
pe
ak O
ut’ h
otl
in
e ar
e
inv
es
t
igate
d, a
nd me
tr
ic
s a
s
so
ci
ated w
i
th r
ep
or
ting m
on
itor
e
d.
Repo
r
ts c
an b
e ma
de an
on
y
mo
usly. Ou
r ethic
s tr
aini
ng op
er
ates in
t
w
o tie
r
s – on
li
ne mo
du
le
s del
i
v
er
ed in a
ll o
ur cor
e l
a
ngu
ag
es
, an
d
group tr
aining acti
vitie
s cover
ing specif
ic subject
s. A
dditionally,
we r
u
n re
gi
ona
l ethi
c
s wo
r
k
sh
ops f
or le
ad
er
s a
cr
os
s Sm
it
hs to
emb
ed a d
eep
er u
nde
r
s
ta
ndi
ng of o
ur ethi
c
s an
d com
pl
ian
ce
cri
tical dr
iver
s
.
Dur
i
ng F
Y
2
0
2
2 w
e cont
inu
ed to r
e
v
ie
w the ef
fec
ti
v
en
es
s of c
er
tai
n
of our p
ol
ic
ie
s, i
ncl
udi
ng:
–
Rev
ie
w
in
g our et
hic
s d
ash
bo
ar
d w
hi
ch en
abl
e
s us to inter
r
o
gate
our r
eg
is
ter of gi
f
ts
, me
al
s
, an
d enter
t
ainm
ent
–
Requi
r
in
g all c
ol
lea
gu
es to t
ake a mo
de
r
n sl
a
ve
r
y aw
ar
e
ne
s
s
tr
ai
nin
g mo
dule e
v
er
y t
w
o y
ea
r
s
–
Impl
eme
ntin
g a ne
w Su
ppl
ie
r Co
de of C
on
duc
t
, in
clu
din
g det
ail
s
of ho
w thi
rd p
ar
ti
es c
an r
e
por
t co
nce
r
ns to o
ur ‘S
pe
ak Ou
t’ h
otl
in
e
–
Upd
atin
g the H
uma
n Rig
ht
s Pol
ic
y
, inc
lud
ing t
he co
mmi
tme
nt
to ens
ur
e that r
e
cr
u
itm
ent a
gent
s a
re f
r
ee f
r
om p
r
a
c
tice
s
as
s
oci
ated w
i
th hu
man r
i
ght
s v
io
l
ati
ons
–
Cr
eati
ng a w
or
k
in
g gr
oup, co
mpr
ise
d of di
v
is
ion
al an
d Gr
ou
p
Pr
o
cur
em
ent le
ad
er
s
hip an
d th
e Ethi
c
s & Co
mpl
ia
nce te
am
, to
mon
itor a
nd r
e
v
ie
w pr
oc
ur
eme
nt r
el
ate
d mo
der
n s
l
av
er
y an
d
huma
n r
ight
s r
isk
s and c
ontr
ol
s
–
Intr
od
uci
ng mi
cr
o
-aw
aren
es
s v
i
de
os th
at en
abl
e us to
communicate quickly and e
f
fec
ti
vely on issue
s that aris
e
–
Co
ndu
c
tin
g our th
ir
d cl
im
ate r
isk a
nd o
ppo
r
tuni
tie
s as
s
e
s
sme
nt
for th
e di
v
is
ion
s an
d Gr
oup
O
ther info
r
mation
O
the
r infor
mation to s
upp
or
t thi
s s
tate
ment c
an b
e fo
und
as fo
ll
ow
s:
–
Busi
ne
s
s mo
del o
n pa
ge 9
–
Pr
i
nci
pal r
isk
s and u
ncer
t
ainti
es o
n pa
ge 47
–
Non
-f
ina
nci
al K
P
Is on p
a
ge
s 2
2 an
d 2
3
–
T
ask For
ce o
n Cl
imate
-r
e
l
ated F
in
anc
ial D
is
cl
osu
re
s on p
a
ge 3
5
–
V
iab
il
it
y State
ment o
n pa
ge 5
4
–
Sus
t
ain
abi
li
t
y a
t Smi
th
s Repo
r
t whi
ch c
an b
e fou
nd on
our website
The follow
ing disc
losure aligns to the non-financial rep
or
ting
req
uire
men
ts c
ont
aine
d in s
ec
ti
ons 4
1
4
CA an
d 4
1
4CB o
f
the C
omp
ani
es A
c
t 2
0
06 a
nd re
fle
c
t
s our co
mmi
tmen
t to
and management of the environment, employees
, social
matter
s, human right
s and anti-br
iber
y and ant
i-
corr
uption.
Our Sm
ith
s cultu
re an
d Value
s su
pp
or
t our ef
fo
r
ts in th
es
e
are
as an
d are d
es
cr
ib
ed o
n pa
ge 9
.
Env
ironm
ent
We comm
it
te
d to amb
it
iou
s Net Ze
ro t
ar
g
et
s: Net Ze
ro e
mis
s
ion
s
fr
om o
ur op
er
ation
s (
S
cop
e 1 an
d 2
) b
y 2
0
4
0 and Net Ze
ro e
mis
si
on
s
fr
om o
ur su
ppl
y cha
in an
d pr
od
uc
t
s in u
se (
S
c
ope 3
) b
y 2
0
5
0. We al
so
hav
e lo
ng
st
an
din
g com
mit
ment
s to u
se e
ner
g
y a
nd ot
her n
atur
al
re
s
our
ce
s ef
fic
ientl
y and m
inim
is
e w
as
te. T
h
e po
li
cie
s th
at sup
po
r
t
our approach include
:
–
Envir
onmental Sustainabilit
y Polic
y
–
Hea
lth
, S
afet
y and E
nv
ir
o
nme
nt (H
SE
) Pol
ic
y
–
HSE Repor
ting Pol
ic
y
–
Respon
sible Miner
al
s Sourcin
g Polic
y
–
Restr
ic
ted Substance
s Polic
y
Emplo
yee
s
Our p
eo
ple a
re v
i
t
al to th
e succ
es
s o
f Smi
th
s, a
nd w
e aim to at
t
r
ac
t
and r
et
ain t
he v
er
y be
s
t by c
r
eati
ng an e
nv
ir
o
nme
nt for em
plo
y
ee
s
based on
respect, personal growth, recogniti
on and
develop
ment
of ta
lent
, an
d a se
ns
e of be
lon
gin
g and p
ur
p
os
e. T
h
e po
li
cie
s th
at
suppor
t our approach include:
–
Fair Em
pl
oy
m
ent Po
li
c
y
–
Global Mobilit
y A
s
signment Policy
–
Recruitment Polic
y
So
cial mat
ter
s
We aim to imp
r
ov
e our w
or
ld by co
ntr
i
but
ing p
os
iti
v
el
y to our
comm
uni
tie
s an
d so
ci
et
y. Sm
ith
s pr
o
duc
t
s a
nd s
er
v
ice
s su
pp
or
t
cr
i
tic
al g
lob
al in
du
st
r
ie
s an
d our o
per
ation
s ar
ou
nd th
e wo
r
ld p
l
ay
a ro
le in l
oc
al e
co
nom
ie
s thr
o
ugh j
ob cr
e
atio
n; pr
oc
ur
eme
nt and
gener
ating tax rev
enues; oper
ating respon
sibly and ethically; and
engaging directly.
The policies that suppor
t our approach include
:
–
Co
de of B
usin
e
ss E
thic
s
–
Dat
a P
rote
c
ti
on an
d Pr
iv
ac
y Pol
ic
y
–
Dat
a P
rote
c
ti
on C
od
e of Co
ndu
c
t
–
Sup
pl
ier C
o
de of C
on
duc
t
N
O
N
-
FI
NAN
C
IAL
INF
O
R
M
A
T
I
O
N
S
TAT
E
M
E
N
T
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
45
Risk go
ver
nance
Th
e Bo
ar
d a
nd i
t
s Co
mmi
t
tee
s s
et th
e cul
tur
e an
d app
r
ov
e the
st
r
ate
g
y of the G
r
oup
. T
he B
oar
d e
ns
ur
es a
ppr
o
pr
ia
te ov
er
s
ight
and m
oni
tor
i
ng th
ro
ugh a n
umb
er of m
ec
hani
sm
s, i
ncl
udin
g
st
r
ate
g
y re
v
ie
w
s
, Co
mmi
t
te
e mee
tin
gs
, man
ag
eme
nt r
epo
r
ts
and fo
cu
s
ed r
e
vi
ew
s o
f se
lec
te
d r
is
k ar
ea
s
.
On b
eha
lf of th
e Bo
ar
d
, the A
ud
it & R
isk C
om
mit
tee is r
es
po
nsi
ble
for r
e
v
ie
wi
ng an
d as
s
e
s
sin
g the ef
fec
ti
v
en
es
s of t
he Gr
o
up’
s r
is
k
man
age
ment a
nd inte
r
nal c
ontr
o
l s
y
ste
ms
. T
he r
e
v
ie
w pr
oc
es
s
cov
er
s the Gr
ou
p’
s pr
inc
ip
al r
i
sk
s
, as w
ell a
s f
ina
nci
al
, op
er
a
tio
nal
and compliance control
s
.
Th
e E
xe
cu
ti
v
e Co
mmi
t
tee i
s r
es
po
nsi
ble fo
r de
si
gnin
g the
Enter
p
r
is
e R
isk Ma
na
gem
ent f
r
am
e
wo
r
k and e
ns
ur
in
g that
it is ef
fec
ti
v
el
y dep
lo
ye
d thr
o
ugh
ou
t the G
r
oup. T
h
e E
xe
cu
ti
v
e
Co
mmi
t
tee a
l
s
o ens
ur
e
s that t
he B
oa
r
d’s ri
sk app
eti
te is
und
er
s
too
d b
y r
isk o
w
n
er
s an
d de
ci
sio
n-
maker
s, en
sur
e
s r
is
ks
,
including climate risk
, are adequately managed
, and conduct
s an
annu
al as
s
e
s
sme
nt of s
tr
ate
gic r
isk
. Ea
ch p
r
inc
ip
al r
is
k is o
w
ne
d
by a m
emb
er or m
emb
er
s of the E
xe
cu
ti
v
e Co
mmi
t
tee
.
We operate across a number of markets and geogr
aphies.
We are pre
pa
red to a
ccept ce
r
tain le
vel
s o
f r
isk to r
eal
is
e
our ambitions, and our Purpos
e, to improve our
wor
ld
through smar
ter engineering
.
We under
s
t
and th
e r
isk
s w
e fa
ce and t
ake a pr
oa
c
ti
ve
app
ro
ach to r
i
sk ma
nag
emen
t in or
de
r to ma
xim
is
e
oppor
tunities
, dri
ve better commercial decision-
making,
and p
rote
c
t our p
eo
ple a
nd ou
r bus
ine
s
se
s
.
Ente
r
pr
ise Risk Management (ERM) roles and r
esponsibilities
BOA
R
D A
ND AUDI
T &
RIS
K COMMI
T
TEE
–
A
ppr
o
ve t
he s
tr
ateg
y and s
et th
e cul
tur
e an
d r
is
k app
eti
te of th
e Gr
oup
–
Rev
ie
w an
d as
s
es
s t
he ef
fec
ti
v
ene
s
s of r
i
sk ma
nag
em
ent an
d inter
n
al
control sy
stems
–
Moni
tor th
r
oug
h Bo
ar
d pr
o
ce
s
se
s an
d go
od g
ov
er
n
anc
e
INT
ERN
A
L AUD
IT
Independent assurance
–
Pr
ov
i
de a
s
sur
ance on inte
r
na
l cont
ro
l
s
, pr
o
gr
a
mme
s
, s
y
s
tems a
nd r
i
sk
management processe
s
E
X
ECU
T
I
V
E CO
MMIT
TEE
A
ND SENIOR M
A
N
A
GEMEN
T
–
De
sig
n and e
s
ta
bl
is
h r
isk m
ana
ge
ment a
nd inte
r
nal c
ontr
o
l s
y
ste
ms
–
Ens
ur
e tha
t the r
i
sk ap
pet
ite of t
he B
oa
rd i
s und
er
s
to
od b
y r
is
k ow
n
er
s
and decision-makers
–
Ensure risk
s are adequat
ely managed
RIS
K A
ND CO
MPL
I
A
NCE
FUNC
TION
S
Monitoring and compliance
–
De
vel
op an
d man
ag
e the E
RM p
r
oce
s
s
–
Moni
tor r
i
sk
s an
d cont
ro
l
s
–
De
vel
op an
d man
ag
e po
li
cie
s an
d cont
r
ol f
r
am
e
wo
r
k
s
–
Ensure f
inancial, leg
al and ethical compliance
–
Ens
ur
e se
cu
r
it
y, quali
t
y a
nd he
al
th an
d s
afet
y
DIVI
SI
ONAL
MANA
GE
M
EN
T
Risk ownership and mitigation
–
Ident
if
y, manag
e an
d es
c
al
ate r
i
sk
s
–
Set div
ision’
s
str
ategic objec
tiv
es
–
E
st
ab
li
sh an
d ap
ply inte
r
nal c
ontr
o
l s
y
ste
ms
–
E
sc
al
ate iss
ue
s to the E
xecu
ti
v
e Co
mmi
t
tee a
s r
equ
ir
ed
OPE
R
A
TIONAL TEAMS
Conducting business activities in accordance with Group policies and standards
–
Unders
tand r
oles and resp
onsibilitie
s
–
Comply with pol
icies
–
Follow risk management processe
s
3rd
LINE OF DEFENCE
2nd
LINE OF DEFENCE
1st
LINE OF DEFENCE
RISK
MANA
G
E
M
E
NT
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
46
Runn
ing a b
usi
ne
s
s inv
ol
ve
s co
ntinu
al as
s
e
s
sme
nt and
man
age
ment o
f r
isk
s – i
t is an i
ntegr
al par
t of da
y
-to
-d
ay
ope
r
at
ion
s
. Our E
nter
p
r
is
e Ri
sk Man
ag
eme
nt (E
RM
) pr
o
ce
s
s
sup
por
t
s op
en co
mmu
nic
ati
on on r
isk bet
we
en th
e Bo
ar
d an
d
Au
dit & R
isk C
om
mit
tee, th
e E
xec
ut
i
ve C
om
mit
tee, our d
iv
i
si
ons
,
fu
nc
ti
ons a
nd si
te
s. I
t en
abl
es u
s to man
ag
e and m
oni
tor th
e
r
isk
s w
hi
ch th
r
eaten s
ucc
es
s
f
ul exe
cu
tio
n of our s
t
r
ate
g
y and
ens
ur
es o
ur s
tr
ategic
, f
inan
cia
l
, com
pl
ian
ce an
d ope
r
at
ion
al r
i
sk
s
ar
e app
ro
pr
i
ately c
ons
id
er
ed b
y th
e E
xec
ut
i
ve C
om
mit
tee and b
y
the B
oa
r
d.
Our divisional and func
tional teams
are re
sponsible for day-
to-
d
ay ma
na
gem
ent an
d r
epo
r
ting of r
i
sk
s
, inc
lud
ing c
li
mate
r
isk
. T
h
ey i
dent
if
y ne
w and e
mer
g
ing r
i
sk
s
, es
c
al
ate w
h
er
e
app
ro
pr
i
ate, an
d ta
ke ac
tio
n to en
sur
e r
is
k
s ar
e man
ag
ed a
s
re
qui
re
d. O
ur di
v
i
sio
ns al
so co
ndu
c
t ann
ual a
ss
e
s
sm
ent
s of th
e
r
isk
s t
he
y fa
ce. I
n F
Y
2
0
2
2 the
s
e we
r
e upd
ated to e
ns
ur
e that t
he
l
ates
t v
ie
w
s w
er
e pr
e
se
nted a
nd co
nsi
de
re
d.
Inter
na
l aud
it p
ro
v
id
e
s ind
epe
nd
ent an
d obj
ec
ti
v
e as
s
ur
a
nce to
both t
he A
udi
t & Ri
sk an
d E
xe
cu
ti
v
e Co
mmi
t
tee
s on t
he a
deq
uac
y
and ef
fec
ti
v
en
es
s of o
ur r
i
sk man
ag
eme
nt and i
nter
n
al cont
r
ol
pr
oc
es
s
e
s. I
t f
aci
li
t
ates t
he E
RM pr
o
ce
s
s and p
r
ov
i
de
s si
te-
ba
se
d
contr
o
l
s an
d as
s
ur
a
nce r
e
v
ie
w
s of key pr
o
gr
a
mme
s
, pr
o
ce
s
se
s
and s
ys
tem
s
.
Th
e A
udi
t & Ris
k Co
mmi
t
te
e, on b
eha
lf of th
e Bo
ar
d
, r
ev
i
ew
s
the effec
ti
venes
s of the risk management proce
ss
, consider
ing
pr
in
cip
al r
i
sk
s an
d unce
r
taint
ie
s and a
c
tio
ns t
aken b
y
management t
o manage those risks.
Dur
i
ng F
Y
2
0
2
2 th
e E
xe
cu
ti
v
e Co
mmi
t
tee a
gr
ee
d th
e ER
M
time
tab
le, a
nd th
e r
is
k
s se
lec
te
d fo
r ‘d
ee
p
-d
i
ve’ dis
cu
s
sio
ns at
E
xec
ut
i
ve a
nd A
udi
t & Ri
sk C
ommi
t
te
e me
etin
gs
. T
he
s
e we
re:
supply chain
; produc
t qualit
y; and contractual obligations
.
Th
e Gr
o
up’
s li
st o
f pr
in
cip
al r
i
sk
s w
as a
l
s
o dis
c
us
s
ed an
d
recalibrated by
the
E
xecutive Co
mmittee.
Th
er
e is a r
e
quir
e
ment f
or r
is
k ow
n
er
s to d
emo
ns
tr
ate how
the
y pr
o
v
ide a
s
sur
ance th
at co
ntr
ol
s are w
or
k
ing e
f
fe
c
ti
v
ely.
E
x
ampl
e
s ar
e pr
ov
i
de
d in th
e ta
ble
s of p
r
inc
ip
al r
is
k
s fr
om
p
a
g
e
4
9.
In ad
dit
ion
, a f
ur
ther 3
2 r
i
sk w
or
k
sh
op
s we
re f
a
cil
it
ate
d at
ope
r
at
ion
al si
tes d
ur
in
g the y
e
ar to sup
po
r
t the bo
t
tom
-up v
i
ew of
r
isk t
hat h
as fe
d into di
v
i
sio
nal an
d f
unc
t
ion
al r
i
sk as
s
e
ss
ment
s.
Th
e Di
re
c
tor
s c
on
sid
er th
e r
is
k man
age
ment p
r
oc
es
s to
be e
f
fective.
Emer
ging
r
i
sk
s
Eme
r
gin
g r
isk
s a
nd h
or
izo
n sc
a
nnin
g ar
e inte
gr
ate
d into th
e
ER
M pr
oc
es
s
. Fun
c
tio
ns in t
he bu
sin
es
s of
ten ta
ke the le
ad i
n
identif
y
ing and promoting ri
sk awar
enes
s and mitigation activ
itie
s.
Cli
mate ch
an
ge r
ema
ins a
n eme
r
gin
g r
isk a
nd fo
r
ms p
ar
t of
re
po
r
ting an
d r
is
k man
ag
eme
nt in the b
us
ine
s
s
. Dur
i
ng F
Y
2
0
2
2
we under
took scenario analysis, including climat
e risk
and o
pp
or
tuni
tie
s w
or
k
sh
op
s for G
r
oup an
d th
e di
v
isi
on
s.
Ou
tcome
s f
r
om th
is w
or
k ar
e d
es
cr
ibed i
n the T
ask F
or
ce
on Climate-related Financial Disclosure
s (
TCFD) sec
tion on
pa
ge 3
5
.
We maintain a register of principal r
isk
s and uncer
taintie
s
covering the str
ategic, financial
, oper
ational and
comp
lia
nce r
is
ks f
a
ced by t
he Gr
oup.
Risk proces
s
We re
v
ie
w ea
ch r
i
sk an
d r
ate a nu
mbe
r of f
ac
tor
s: gro
s
s imp
ac
t
,
applying the hy
pothetical assumption there ar
e no mitigating
contr
o
l
s in p
l
ace; r
e
si
dual i
mp
ac
t an
d li
keli
ho
od
, ta
kin
g into
acco
unt ex
is
ti
ng mi
tig
atin
g co
ntr
ol
s; the re
pu
tat
ion
al imp
a
c
t of
a r
isk
; and v
el
oc
it
y
, w
hic
h ref
l
ec
t
s th
e ex
pe
c
ted t
ime w
e w
oul
d
hav
e to r
ea
c
t sho
ul
d a r
isk m
ater
i
al
is
e. T
he
s
e, in t
ur
n
, dr
i
ve
mitigation prior
itie
s. A trend metr
ic shows the net position of the
r
isk y
ea
r-
o
n-
ye
ar
. We rep
or
t on th
e co
nne
c
ti
v
i
t
y b
et
ween r
isk
s to
hel
p un
der
sta
nd th
e po
tentia
l for o
ne r
is
k to ha
ve an i
mp
ac
t on
anot
her
. Th
is is p
r
es
ente
d ag
ain
st e
ac
h r
isk i
n the f
or
m of a ‘r
isk
re
l
atio
ns
hip’ cha
r
t indic
at
ing th
e l
ink
age b
et
wee
n ea
ch pr
incip
al
r
isk a
nd oth
er
s o
n th
e li
st
. T
hi
s ha
s be
en us
e
d as an i
npu
t to the
V
iab
il
it
y State
ment a
s
se
s
sm
ent an
d w
ill b
e us
e
d mor
e w
i
del
y in
fu
tur
e r
i
sk s
cen
ar
io p
l
an
ning a
nd mi
ti
gati
on w
or
k
.
Change
s
to pr
in
cipa
l r
i
sk
s
Our p
r
inc
ip
al r
is
k
s cont
inue to e
v
olv
e in r
e
spo
ns
e to ou
r cha
ngin
g
r
isk e
nv
ir
on
me
nt. T
hi
s ye
ar
, bas
e
d on ou
r cur
r
e
nt as
s
es
sm
ent
of the
ir mate
r
ial
it
y, we hav
e inc
lud
ed t
wo n
ew p
r
inc
ip
al r
i
sk
s:
Gr
ow
th
, ref
le
c
ti
ng ou
r re
ne
we
d fo
cu
s on gr
o
w
th in our s
tr
ateg
y;
and e
nv
ir
on
ment
, s
oc
ial an
d go
ve
r
na
nce (
E
S
G), r
efl
ec
t
ing an
incr
e
as
ed f
oc
us f
r
om in
ve
s
tor
s
, em
plo
y
ee
s
, cu
sto
mer
s and
sup
pl
ier
s
. We h
av
e re
mo
ve
d our G
r
oup P
or
t
fol
io r
isk w
ith t
he
comp
let
ion of t
he s
al
e of Sm
ith
s Me
dic
al
. We have c
omb
ine
d a
numb
er of r
i
sk
s in
clu
din
g CO
V
ID
-
1
9 and I
ntegr
ated Sup
ply C
hain
into a Bus
ine
s
s C
ontin
uit
y r
isk
; Cus
tom
er
s a
nd Ma
r
ket
s r
is
k
s
into a Co
mme
rc
ial r
i
sk; a
nd Et
hic
al B
re
ac
h and C
ont
r
ac
t
ual
Obligations into
Legal and Compliance risk
.
W
hile w
e co
ntin
ue to mo
nito
r and m
an
age a w
i
de r
ange of r
i
sk
s
,
the t
ab
le
s that f
ol
lo
w sum
mar
i
se t
ho
se r
i
sk
s co
nsi
de
re
d to ha
ve
the gr
e
ate
st p
otent
ial im
pa
c
t if th
ey w
er
e to m
ater
ia
li
se
.
P
RIN
C
IP
A
L
R
I
SK
S A
N
D
UN
CE
R
T
A
IN
T
IE
S
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
47
Pr
inc
ipal
r
isk
s an
d uncer
t
ainties
Prin
cipal risk
L
in
k to s
t
r
at
eg
y
Gross risk
Residual risk
Likelihood
Velocit
y
Tr
en
d
1. ORGANIC GROWTH
Ver
y High
Mo
der
ate
Possible
Ye
a
r
s
A
bi
li
t
y to ach
ie
ve o
r
ga
ni
c gr
o
w
t
h
in l
in
e w
it
h ma
r
ket op
p
or
tun
it
y
2. ESG
High
Low
Possible
Yea
r
s
Fail
ur
e to m
ee
t st
a
keh
ol
de
r ex
p
ec
t
at
io
ns
on environmental
, social and
gover
nance obligations
3. TECHNOLOGY
Ver
y High
Mo
der
ate
Probable
Ye
ar
s
—
T
echnology disruption by existing
or future competitor
4. PEOPLE
Mod
er
ate
Low
Possible
Months
A
bi
li
t
y to at
tr
ac
t and r
e
ta
in p
eo
pl
e
5. BUSINESS CONTINUITY
High
M
ode
r
ate
Pr
obable
Week
s
Business disruption to
supply chain
or operations
6. ECONOMY AND GEOPOLITICS
High
M
ode
r
ate
L
ikely
Months
Impact of economic and geopolitic
al environm
ent
7. COMMERCIAL
High
Low
Possible
Yea
r
s
—
Lo
s
s of fo
c
us o
n cu
s
tom
er
s a
nd n
ot c
om
pe
tin
g
in th
e r
i
ght m
ar
ket
s
8. PRODUCT QUALITY
Mod
er
ate
Low
Probable
We
eks
—
Fail
ur
e of p
r
od
uc
t c
a
us
e
s s
er
i
ou
s ha
r
m
to
people/propert
y
9. CYBER SECURITY
High
Low
Prob
able
Days
—
Imp
a
c
t of en
ter
p
r
is
e o
r pr
o
du
c
t c
y
b
er e
v
ent
10. LEGAL AND COMPLIANCE
High
Low
Possible
Day
s
—
Si
gni
f
ic
a
nt eth
ic
a
l br
e
ac
h or f
ai
l
in
g
to meet
contrac
tual obligations
Key
Link to strategy
Grow
th
E
xecution
People
Likelihood
Al
mo
s
t Ce
r
tain
> 8
0%
Likely
> 60
%
Prob
able
> 4
0
%
Possible
> 20
%
Unlikely
< 20
%
Trend
Ne
w
Stable
—
Up
Conn
ec
ti
v
i
t
y
bet
ween
pr
inc
ipal
r
isk
s
ORGA
NIC
GROW
TH
ESG
TECH
NOLOGY
PEOPLE
BUSINE
SS
CONTINUIT
Y
ECONOMY AND
GEOPOLITIC
S
COMME
RCIA
L
PRODUCT
QUALITY
CYBER
SECURI
T
Y
LEG
AL
AND
COMPLIA
NCE
ORGANIC G
ROW
TH
ESG
TECHNOLO
GY
PEOPLE
BUSINE
SS CONT
INUIT
Y
ECONOMY
AND GEOPOLITIC
S
COMMERCI
AL
PRODUCT
QUALITY
CYBER SECURIT
Y
LEG
AL
AND
COM
PLIANC
E
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
48
1
. O
RGA
NIC G
RO
W
TH – A
bil
it
y t
o achi
eve or
ga
nic gr
ow
th in lin
e w
ith ma
r
ket opp
or
tunit
y
RISK OWNER
Divisional Presidents
TREND
NE
W
R
I
SK
2. E
S
G –
Fai
lure to meet stakeholder expec
tations on environmental
, soci
al and governance obligations
RISK OWNER
Chief Sustainability Officer
TREND
NE
W
R
I
SK
The risk of not
growing means we
become less
relevant and discounted
by the market, resulting
in erosion of
shareholder value. A growth culture
is a ke
y co
mp
on
en
t of t
he G
r
ou
p’s str
a
te
g
y. Gro
w
th
is a
fr
amework that drives the operational tasks,
pr
oj
ec
ts a
nd i
ni
ti
at
i
ve
s of t
h
e Gr
ou
p. T
h
e Gr
ou
p’s
heritag
e depends on
innovation, which present
s
nu
me
ro
us o
p
po
r
tuni
ti
e
s fo
r gr
o
w
t
h th
at a
re
con
s
t
an
tly p
u
r
su
ed
. C
om
p
an
ie
s th
a
t do n
ot g
ro
w
t
y
p
ic
al
ly d
o no
t a
t
tr
a
c
t t
he m
os
t t
al
en
te
d te
am
members
, as great
people seek oppor
tunities
for advancement.
How this
could impact our strategy
or business model
–
Material adver
s
e effec
t on valuation
–
Er
o
si
on o
f our r
e
pu
t
ati
on a
s a le
a
de
r
in ou
r ma
r
ket
s a
nd of o
ur a
bi
li
t
y to
at
tr
ac
t an
d r
et
ain t
a
le
nt
E
xa
mp
l
e
s of h
ow w
e ma
na
g
e th
is r
i
sk
–
A cl
ea
r Gr
o
up s
tr
ateg
y to a
ch
ie
v
e or
g
ani
c
gr
o
w
t
h go
al
s, u
nd
er
p
in
ne
d by d
et
ai
le
d
div
isional str
ategies
–
De
ta
il
ed r
e
v
ie
w
s of e
x
is
ti
ng a
nd p
ote
nti
al
ne
w ma
r
ket
s to i
de
nti
f
y opp
o
r
tuni
ti
e
s w
it
h
signific
ant grow
th potential
–
S
ec
ur
i
ng a
nd r
e
ta
ini
ng t
he b
e
s
t ta
le
nt to
exe
cu
te s
tr
ateg
y a
nd d
el
i
v
er o
r
ga
nic g
r
ow
th
–
A
nnual incentive progr
amme to suppor
t
profitable grow
th
–
A
nnual strategic planning
, budgeting
proce
ss and monthly forec
asting
–
On
go
in
g in
ve
s
t
me
nt in r
e
s
ea
rc
h an
d
de
ve
lo
pm
en
t to dr
i
v
e in
no
v
at
io
n an
d gr
o
w
th
–
Sm
it
hs E
xcel
le
nc
e Sy
s
tem i
n pl
a
ce t
o en
sur
e
effec
tive execution
Example
s of
how we know
the controls
are working eff
ecti
vely
–
Div
isional per
formance and forecast
rev
iew
s completed monthly
–
Per
for
mance and K
PIs monitore
d
an
d tr
a
cke
d b
y th
e Bo
a
r
d
–
Functional re
view
s of Smiths Excellence
an
d Pe
op
le s
tr
ateg
ie
s
Environmental
, Social and Governance (ESG)
areas are essential matters for all c
ompanies
and stakeholders. Failure
to meet stakeholder
expect
ations on
increasing ESG obligations may
expose the Group
to reputational
or financial
r
is
k
. Th
i
s in
cl
ud
e
s r
is
k
s a
s
so
c
ia
te
d w
it
h
shifting inves
tor sentiment, evolving customer
requirements
, supply
chain trends, social attitudes
toward the environmental impact of product
s, and
ou
r ab
il
it
y to at
t
r
ac
t and r
et
a
in t
a
le
nt
. Fai
lu
re t
o ac
t
appropriately ma
y well i
ncrease the magnit
ude of
th
e r
is
k ov
er t
he l
on
g te
r
m
.
How this
could impact our strategy
or business model
–
Lo
s
s of ke
y t
al
ent c
om
mi
t
te
d to
wo
r
k
in
g for a s
o
ci
al
ly r
e
sp
on
s
ibl
e an
d
sustainable organisation
–
L
imi
t t
he nu
mb
er o
f de
bt an
d e
qui
t
y inv
es
to
r
s
–
A
d
ve
r
s
e im
pa
c
t on t
he a
bi
li
t
y to
meet customer
expec
tations on
sustainabilit
y per
for
mance
–
Limiting the sust
ainable grow
th potential of
our ke
y b
us
ine
s
s s
e
gm
ent
s
–
Fai
lur
e to m
ai
nt
ain s
t
ro
n
g con
tr
ol
s and
corpor
ate governance on ESG
-rel
ated
no
n-
fi
na
nc
ial m
et
r
ic
s c
ou
ld l
e
ad to f
r
a
ud
or error
s
E
xa
mp
l
e
s of h
ow w
e ma
na
g
e th
is r
i
sk
–
Rep
or
t on E
S
G i
n a tr
ans
pa
r
ent w
a
y w
i
th
appropr
iate
ver
ification acti
vit
y, includi
ng
pub
l
ic
at
io
n of o
ur f
ir
s
t S
us
t
ai
na
bi
li
t
y at
Sm
it
hs r
ep
o
r
t in F
Y2
0
2
2
–
S
ci
en
ce, S
u
st
a
ina
bi
li
t
y & E
xcel
l
enc
e (
S
S
E
)
Co
mm
it
t
ee of t
he B
o
ar
d e
s
t
ab
li
sh
e
d to
ov
er
see a
nd s
up
po
r
t del
i
v
er
y of E
S
G t
a
r
get
s
and goal
s
–
Su
s
t
ain
ab
il
it
y st
r
at
eg
y i
nte
gr
a
ted t
o Gr
o
up
an
d di
v
is
io
n s
tr
ategi
e
s
, al
ig
nin
g an
d
le
ve
r
a
gi
ng t
he S
mi
th
s Val
ue E
n
gin
e to d
el
i
ve
r
v
alu
e fo
r al
l s
ta
keh
ol
d
er
s
–
E
xecuti
ve management responsible for
se
t
ti
ng a
nd d
el
i
v
er
i
ng E
S
G g
o
al
s
–
E
S
G t
ar
g
et
s bu
il
t into l
on
g-
ter
m a
nd a
nn
ua
l
remuner
ation incentive plans
–
Me
et Task Fo
rc
e on C
li
ma
te-
r
el
ated
Financial Disclosures (
TCFD)
repor
ting requirements
–
Co
mm
it
ted to s
et
t
in
g S
cie
nc
e
-B
a
se
d T
ar
g
et
s
to me
et N
et Ze
ro S
c
op
e 1 & 2 em
is
s
io
ns b
y
2
0
4
0 and Ne
t Zer
o S
c
op
e 3 em
is
s
io
ns b
y
2
0
5
0; al
so s
et 3
-
ye
ar t
a
r
get
s F
Y
2
02
2-24 f
or
GH
G, w
as
te
, w
ate
r an
d r
en
ew
a
bl
e el
ec
t
r
ic
i
t
y
Example
s of
how we know
the controls
are working eff
ecti
vely
–
S
S
E Co
mm
it
t
ee m
ee
t
s fo
ur ti
me
s a y
ea
r to
review
prog
ress
–
Pr
ogre
ss on environment
al metrics
–
A
ll d
i
v
is
io
ns e
ng
ag
ed i
n pr
o
du
c
t ar
e
as t
ha
t
suppor
t environmental per
for
mance of
, and
through, cus
tomers
–
St
ro
n
g sc
or
e
s fo
r s
afe
t
y a
nd e
thi
c
al m
at
te
r
s
in th
e M
y S
a
y em
pl
oy
e
e sur
v
e
y
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
49
3.
TECHNOL
OGY – T
echno
log
y d
isr
up
tio
n by ex
is
ting o
r fu
ture co
mpe
titor
RISK OWNE
R
Divisional Presidents
TREND
—
4.
PEOP
LE – A
b
ili
t
y to at
t
r
ac
t a
nd re
ta
in pe
opl
e
RISK OWNE
R
Chief People Officer
TREND
Differ
entiated products and ser
vice
s are critical
to ou
r su
cc
es
s
. We m
ay b
e un
a
bl
e to m
ai
nt
ai
n
technological differentiation;
to meet
customers’
existing needs or ant
icipate emerging demand
tr
en
ds
; an
d ma
y f
ac
e di
sr
u
p
ti
ve i
nn
o
v
ati
o
n by
a com
p
et
it
or
. Th
is c
ou
l
d af
f
e
c
t ou
r s
tr
a
te
g
y or
bu
si
ne
s
s m
od
e
l thr
o
ug
h a ma
te
r
ia
l a
d
ve
r
se e
f
f
ec
t
on revenue, revenue
grow
th or profit margin;
erosion of our
reputation as a
technology leader
in o
ur m
ar
ke
t
s; a
nd o
ur a
bi
li
t
y t
o at
t
r
a
c
t an
d
retain talent.
How this
could impact our strategy
or business model
–
Mat
er
i
al a
d
ve
r
s
e ef
fec
t on m
ar
g
in
an
d pr
of
i
ta
bl
e gr
o
w
th
–
Er
o
si
on o
f our r
e
pu
t
ati
on a
s a le
a
de
r
in ou
r ma
r
ket
s a
nd of o
ur a
bi
li
t
y to
at
tr
ac
t an
d r
et
ain t
a
le
nt
E
xa
mp
l
e
s of h
ow w
e ma
na
g
e th
is r
i
sk
–
Pr
oac
tive rep
ositioning of the port
fol
io
ar
ou
nd t
he m
os
t at
tr
ac
tiv
e m
ar
ket
s wh
er
e
we c
a
n su
s
ta
in
abl
y ho
l
d a top t
hr
e
e po
si
ti
on
based on
techn
ology leadership
–
Div
ersi
fied technolog
y por
t
folio ser
ving a
r
an
ge o
f s
ec
to
r
s a
nd g
eo
gr
aph
ie
s
, mi
ti
gat
in
g
ex
po
su
r
e to an
y on
e se
c
to
r or a
r
ea
–
Co
nt
inu
in
g an
d sm
ar
ter in
v
es
t
me
nt in R&D
(F
Y
2
0
2
2
: 4
.
2
% of G
ro
up r
e
v
enu
e, F
Y
2
0
2
1
:
3
.9
%
)
–
Fo
cu
s on b
ui
ld
in
g a cu
ltu
r
e of in
no
v
at
io
n
w
it
h a lo
ng
-r
ang
e te
chn
ol
o
g
y r
oa
dm
ap
for each
div
ision
–
Focus on next generation and
tr
ansfor
mational initiatives
–
Ne
w P
r
od
uc
t I
ntr
o
du
c
ti
on (
NP
I
)
proces
s operating across div
isions
to accelerate project
s
–
Gr
o
s
s V
i
ta
l
it
y as a K
P
I
–
Robust int
ellectual proper
ty (IP) protection
v
ia p
ate
nt
s an
d oth
er p
r
ote
c
ti
on
s
, an
d
litigation where appropr
iate
Example
s of
how we know
the controls
are working eff
ecti
vely
–
New product development progress is
re
v
i
ew
e
d by t
he S
SE Co
mm
it
tee an
d
is p
ar
t of ou
r inte
r
n
al p
er
for
manc
e
indicator tr
ackin
g sy
stem
–
A
dh
er
en
ce to N
PI p
r
o
ce
s
s is a
ud
ite
d
an
d emb
e
dd
ed i
n s
y
s
tem
s w
i
th m
ont
hly
‘
pipel
ine’
over
view prov
ided by divisions
–
T
ec
hn
ol
og
y r
o
a
dma
p is p
a
r
t of the
Gr
ou
p s
tr
ategi
c c
y
cl
e
People are our
only truly
sustainab
le source
of competi
tive ad
v
anta
ge and compe
tition fo
r
key
skill
s is intense,
especial
ly around
science,
technology, engineering and
mathematics (S
TEM)
di
sc
ip
l
in
e
s. We m
ay n
o
t be s
uc
ce
s
sf
u
l in a
t
tr
a
c
t
in
g,
retaining, developing, engaging and inspir
ing the
r
ig
ht p
eo
p
le w
i
th t
he r
i
gh
t sk
i
ll
s to ach
ie
ve o
ur
grow
th ambitions.
How this
could impact our strategy
or business model
–
In
abi
l
it
y to at
tr
ac
t key t
a
len
t le
ad
in
g
to a lo
s
s of co
mp
et
it
i
ve a
d
v
a
nta
g
e
–
Di
f
f
i
cu
lt
y in re
ta
ini
ng p
er
son
ne
l
, at al
l
le
ve
l
s o
f the o
r
ga
ni
s
ati
on
, l
ea
di
ng to a
loss of competitive ad
vantag
e
–
In acquisitions, losing
key personnel from
the newly-acquired business which may
signific
antly impact per
formance and value
E
xa
mp
l
e
s of h
ow w
e ma
na
g
e th
is r
i
sk
–
Remuner
ation regul
arly ev
aluated
ag
ain
s
t ma
r
ket t
re
nd
s
–
Fo
cu
s on S
mi
th
s L
ea
d
er
s
hip B
e
ha
v
io
ur
s
–
Introduc
tion of t
echnic
al engineering
communities, technical car
eer lad
der
,
and early car
eer pro
gr
amme
–
T
argeted talent and succession
planning s
tr
ategy
–
Fo
cu
s on o
nb
o
ar
d
ing a
nd i
ni
ti
al
exper
ience improvement
–
Increa
se in
te
rnal ta
len
t mo
bility
–
Str
uctur
ed asse
ssment, dev
elopment,
and rew
ard pr
ogr
amme
–
Div
ersi
t
y and inclusion initiatives
Example
s of
how we know
the controls
are working eff
ecti
vely
–
Fo
r
ma
l an
d inf
or
m
al m
e
as
ur
e
s of c
ult
ur
e,
for e
x
amp
le r
e
gu
l
ar e
ng
ag
em
ent s
ur
v
ey
s
with follow-up action planning
–
Remuneration & People Commit
tee
tr
a
ck
s ke
y p
eo
pl
e me
tr
i
c
s
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
50
5.
BUSINE
S
S C
ONT
INUI
T
Y – Bus
ine
s
s dis
r
upti
on to sup
ply ch
ain o
r ope
r
atio
ns
RISK OWNE
R
Divisional Presidents
TREND
6. EC
ONO
M
Y A
ND GEOP
OL
IT
IC
S – Im
pac
t of econo
mic an
d ge
opo
lit
ic
al env
ir
onm
ent
RISK OWNE
R
Chief Financial Officer
TREND
Major disruption to
the Group’
s oper
ations can
re
su
lt i
n f
ai
lu
re t
o me
e
t ou
r cu
s
to
me
r ne
e
ds
.
Timely
, efficient supply of
r
aw materials and
purchased components is critical to our
abilit
y
to deliver to
our customers
. Manufac
turing
and supply chain
continuity is exposed to
exter
nal events that
could have significant
adver
se consequences
, including natural
catas
trophes
, civil or political unrest, changes
in regulator
y conditions, terroris
t attacks
an
d di
s
ea
s
e p
an
de
mi
c
s – t
hi
s ap
pl
i
es t
o ou
r
ow
n m
an
uf
a
c
tu
r
in
g s
it
es a
n
d th
os
e of o
ur
key
component suppliers.
How this
could impact our strategy
or business model
–
Inabilit
y to
deliver produc
ts
/solutions
to customers
, impacting financial
per
for
mance and
reput
ation
E
xa
mp
l
e
s of h
ow w
e ma
na
g
e th
is r
i
sk
–
Smiths E
xcellence System oper
ating model
del
i
v
er
s incr
e
a
se
d fo
c
us o
n re
s
il
ie
nt an
d
cost-effecti
ve supply
–
Busines
s continuity and disas
ter recover
y
pl
a
ns i
n pl
a
ce an
d te
s
te
d for c
r
i
ti
c
al l
oc
at
io
ns
–
Reg
ul
a
r ev
alua
tio
n of ke
y si
te
s fo
r a
r
an
ge o
f r
is
k f
ac
t
or
s u
si
ng e
x
te
r
na
ll
y
benchmar
ked asses
sments – risk re
duction
me
as
ur
e
s fo
r cr
i
ti
c
al p
r
od
uc
t
s a
nd d
ua
l
manufac
tur
ing cap
abilitie
s
–
Mitigation plans for
sole source suppliers,
sub-contr
ac
tor
s and ser
v
ice provi
ders
developed and deployed by divisions to
include qualif
ication of alternativ
e source
s
of su
pply where appropriate
–
Proper
ty damage and
business
interruption insurance
Example
s of
how we know
the controls
are working eff
ecti
vely
–
Busines
s continuity pl
ans tested annually
–
Risk mitigation
plans rev
iewe
d and
repor
ted by divisions
–
Business interruption risk sur
ve
ys
com
pl
ete
d b
y an e
x
ter
nal p
ro
v
i
de
r
for ke
y o
pe
r
at
io
na
l si
te
s
–
In
su
r
an
ce r
e
qu
ir
em
ent
s d
r
i
v
en b
y th
e
r
is
k ap
pe
ti
te of th
e Gr
o
up a
nd d
i
v
is
io
ns
are val
idated at least annually
The world is experiencing widespread global
inflation and severe inflation in
energy markets
.
Th
e Ru
s
si
a
n inv
a
s
io
n of U
k
r
ai
ne h
a
s re
s
ult
ed i
n
new trade sanc
tions and in
troduced additional
supply and pricing uncert
ainties to t
ight energy
an
d co
mm
od
i
t
y m
ar
ke
t
s. C
hi
n
a’
s ap
pr
o
ac
h to
managing COV
ID-
1
9 is further contributing to
rising cost
s and disrupted supply chains. Central
ba
nk
s g
lo
b
al
ly a
re r
a
i
si
ng r
ate
s in o
r
de
r to c
ur
b
inf
l
a
ti
on
. Sm
it
h
s f
ace
s t
he r
i
s
k of r
i
si
ng l
a
b
ou
r
,
material
, and transpor
tation costs which it may
no
t be a
b
le to p
a
s
s on t
hr
o
ug
h pr
i
ci
ng
. I
n ad
di
ti
on
,
as c
en
tr
a
l b
an
k
s ta
ke ac
tio
n to c
ur
tai
l in
f
l
at
io
n,
th
er
e is a r
i
s
k of a r
eg
io
na
l or g
l
ob
al r
e
ce
s
si
on
which would pressure our revenue
grow
th and
profitabilit
y. Geopolitical tensions
and trading
bl
oc f
o
r
ma
ti
on m
ay f
u
r
t
he
r im
p
ac
t t
he f
r
ee
mo
ve
me
nt o
f c
ap
it
a
l
, go
o
ds
, a
n
d pe
op
l
e an
d ad
d
volatilit
y to our supply
chains or constrain our
market opportunities.
How this
could impact our strategy
or business model
–
Significant and prolonged reduction
in gl
ob
al d
em
an
d fo
r ou
r pr
o
du
c
t
s
–
Geopo
litic
al tensions relating to Russia,
Chi
na
, In
dia
, a
nd t
he Mi
dd
le E
a
s
t ad
v
er
sel
y
impact tr
ade
–
Ad
ver
se impact on business per
formance
due t
o th
e imp
o
si
ti
on of t
ar
if
f
s
–
Gover
nment
s continue t
o look for ways
to imp
r
o
ve t
a
x r
ev
en
ue
s to e
a
se f
i
sc
a
l
budget pressures
E
xa
mp
l
e
s of h
ow w
e ma
na
g
e th
is r
i
sk
–
Div
ersi
fied por
tfolio of business
es which
mi
tig
ate
s e
xp
os
ur
e to a
ny o
ne c
ou
ntr
y
or sector
–
Geogr
aphic spre
ad which mitigates the
imp
a
c
t of tr
ade b
a
r
r
ie
r
s b
et
wee
n r
eg
io
ns
–
Div
isions monitor order
flow
s and other
le
ad
in
g ind
ic
at
or
s s
o t
hat t
he
y m
ay r
e
sp
on
d
quickly t
o deterior
ating trading condition
s
an
d ta
r
if
fs
/
bar
r
ier
s to f
r
e
e tr
a
d
e
–
Rep
r
es
e
nt
ati
on o
f our i
nte
re
s
t
s b
y th
e Gr
o
up
Co
r
p
or
ate Af
fa
ir
s te
am
–
Net
wor
k of trade compliance of
ficer
s acros
s
the G
r
ou
p w
ho m
on
it
or up
c
omi
ng c
ha
ng
e
s
in r
eg
ul
a
tio
n an
d o
ve
r
s
ee i
mp
or
t an
d
expor
t activi
ties
Example
s of
how we know
the controls
are working eff
ecti
vely
–
Co
s
t an
d pr
ice inf
l
a
tio
n ar
e t
r
a
cke
d
and acti
vely managed monthly
–
Or
d
er t
r
a
ck
in
g r
ep
or
ted a
nd m
on
it
or
e
d
–
Busines
s indicators repor
ted weekly
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
51
7
.
COMMER
CI
A
L – L
os
s of fo
cu
s on cu
sto
mer
s an
d no
t comp
etin
g in the r
i
ght ma
r
kets
RISK OWNE
R
Divisional Presidents
TREND
—
8.
PRODU
C
T QUA
LI
T
Y – Failure o
f pro
du
c
t ca
us
es s
er
io
us ha
r
m to pe
opl
e/pr
ope
r
ty
RISK OWNE
R
Divisional Presidents
TREND
—
Ou
r ma
r
ket
s a
r
e ev
olv
i
ng a
t a f
a
st p
a
ce
, cr
ea
ti
ng
potential for
customers to change
their business
mo
de
l
s a
s th
ey l
o
ok t
o de
li
v
er p
r
od
uc
ts a
nd
ser
v
ices at higher
qualit
y,
with better ser
vice
an
d at l
ow
e
r cos
t
. Fai
lu
re o
f th
e G
ro
up t
o kee
p
pace with customer changes/requirements
(innovation, go-to-
market strategies) could have a
materially adverse impac
t on Group
per
for
mance.
A significant propor
tion of
our revenue c
omes
fr
om t
he U
S a
nd E
ur
op
e
an m
ar
ke
t
s
, w
it
h a no
t
ab
l
e
propor
tion coming
from governments. In addition
to ge
o
gr
aph
ic
a
l ma
r
ket
s
, t
he
re i
s a r
i
sk t
ha
t we
do n
ot f
o
cu
s on a
t
tr
ac
ti
v
e se
c
t
or
s w
h
er
e we h
av
e,
or could
have, a
sustainable position. The Group
’
s
gr
ow
th s
tr
a
te
g
y is e
x
pa
n
di
ng o
ur o
pe
r
a
ti
on
s in
developing/
higher-grow
th markets – par
ticular
ly
markets that are
unders
er
ved in Asia Pacific
.
How this
could impact our strategy
or business model
–
Fai
lur
e to d
e
ve
lo
p oth
er m
ar
ke
t
s an
d
geogr
aph
ies impac
t
s str
ategic progr
es
s
and financial per
for
mance
–
Signific
ant disruption to government budgets
re
s
ul
t
s in fe
w
er c
ont
r
a
c
t
s b
ein
g a
w
ar
d
ed
to Smiths, impac
ting financial per
fo
rmance
–
Lo
s
s of m
ar
ke
t sh
ar
e an
d ad
v
e
r
s
e imp
a
c
t
on G
ro
up r
e
s
ult
s
E
xa
mp
l
e
s of h
ow w
e ma
na
g
e th
is r
i
sk
–
Ne
w pr
o
du
c
t in
no
v
at
io
n fe
ed
b
ac
k thr
o
ug
h
mar
ket re
s
ea
r
ch a
nd di
r
ec
t f
ee
db
a
ck f
r
om
existing and potential customers
–
A di
v
er
sif
ie
d p
or
t
fo
li
o of b
us
ine
s
s
e
s
mi
tig
ate
s e
xp
os
ur
e to a
ny o
ne c
ou
ntr
y,
sec
tor or
customer
–
Gro
w
th str
ategy which pl
aces emphasis
on expanding operations in
higher-gr
ow
th
mar
kets a
nd r
e
gi
on
s w
hi
ch a
re c
ur
ren
tly
under
ser
ved, including Asia
–
St
r
ate
gi
c pr
o
ce
s
s to c
a
ptu
r
e
continuing oppor
tunities in curr
ent
an
d adj
ac
ent m
ar
kets
–
Gover
nment rel
ations function w
hich
collaborates with
colleag
ues across
the Group t
o advise on developments
Example
s of
how we know
the controls
are working eff
ecti
vely
–
Str
ategic revie
w proces
s; divisional
de
ep d
i
ve
s
–
Customer input gathered on a frequent basis
–
Strong and long-term customer
relationships prov
ide assurance
–
Managing Director c
ouncils est
ablished
in In
di
a an
d Chi
na
The mission-
critical nature of many
of our
produc
ts
, ser
vices and solutions mak
es the
potential consequences of
failure more serious
than for
other businesses
. In
the ordinary course
of business, we are potentiall
y subject to material
produc
t liabilit
y claims and lawsuit
s, including
potential class actions, from customers or
thi
r
d p
ar
tie
s
. In
te
r
na
l r
is
k
s c
an o
r
i
gin
a
te f
ro
m
inadequacies or insufficiencie
s in
proces
ses
for procurement of
material
s and components,
change control, manufac
turin
g, internal qualit
y
sys
tems, adaptation to changing
industr
y
regulations
, and systems maintenance
and
compliance. Exter
nal risks can result from failure
to manage
produc
t certific
ation and c
ompliance,
inspec
tions and audits or
challenges to product
registr
ations or c
er
tifications
, which can lead t
o
in
ab
il
it
y to bi
d fo
r b
us
in
e
s
s an
d
/or s
el
l pr
o
du
c
t
s
and ultimatel
y regulator
y action and fines.
How this
could impact our strategy
or business model
–
On
e of o
ur b
usi
ne
s
s
e
s or S
mi
th
s
, as a w
h
ol
e,
ha
s it
s r
e
pu
t
ati
on d
am
ag
ed l
ea
di
ng t
o a lo
s
s
of customers/f
uture business
–
Mat
er
i
al ha
r
m c
au
s
ed t
o pe
op
le o
r pr
o
pe
r
t
y
and/or business in
terr
uption for
customer
s
due t
o qua
l
it
y is
su
e
s
, de
si
gn d
efe
c
t
s
,
manuf
ac
tur
ing failur
es
, component fail
ure
s,
etc r
e
sul
t
s in r
e
pu
ta
ti
on
al d
ama
g
e, lo
s
s of
bu
sin
e
s
s an
d hi
ghe
r co
s
t
s be
y
on
d (c
os
te
d in
)
war
r
ant
y cl
aims
–
Contr
act
ual claims for penalties,
indemnitie
s, and damages and al
so produ
ct
li
ab
il
it
y cl
ai
ms a
r
is
in
g f
r
om en
d
-u
s
er
s a
nd
other affec
ted third par
ties (
potentially
larg
e
cla
ss)
E
xa
mp
l
e
s of h
ow w
e ma
na
g
e th
is r
i
sk
–
Div
isional qualit
y r
isk asse
ssment
s
tha
t ad
dr
e
s
s pr
o
du
c
t f
ai
lur
e
s
, pr
o
du
c
t
per
for
mance, pr
oduc
t safet
y,
pro
duct
compliance, re
gulator
y compliance, and
market authorisation
–
Quali
t
y assur
ance pr
oces
se
s embedded
in manufacturing locations for critical
equipment, suppor
ting compliance
with customer re
quirements and
industr
y regul
ations
–
Quali
t
y developm
ent and qualit
y
inte
gr
atio
n bu
ilt i
nto n
ew p
r
od
uc
t
development processes
–
Risk analysis and mitigation pro
ces
ses
rel
ating to
produ
ct c
yber re
silience
embedded
in t
he product
lifecycle process.
Pr
o
ac
tiv
e s
te
ps t
ake
n to en
su
r
e pr
o
du
c
t
c
yber rel
ated risk
s are continually
monitored and manage
d
–
In
su
r
an
ce c
ov
e
r for p
r
od
uc
t l
i
abi
l
it
y
an
d oth
er r
el
ated r
i
sk
s s
uc
h as a
v
iat
io
n
gr
ou
nd
in
g – Ins
ur
anc
e and L
e
ga
l te
am
s
par
tner to ensure contrac
t
s (and supplier
flow down
s) cover insurance issues and
cl
a
ims a
r
e no
ti
fi
e
d
–
Contr
actin
g and litigation managed under the
over
sight of the
Group Gener
al Counsel w
ith
re
gu
l
ar r
e
po
r
tin
g to E
xe
c
ut
i
ve C
o
mmi
t
te
e
and Board
Example
s of
how we know
the controls
are working eff
ecti
vely
–
Qu
al
i
t
y m
ea
s
ur
e
s (e
.g
. def
ec
t
i
ve p
a
r
ts p
er
mil
l
io
n (D
P
P
M) a
nd c
os
t of p
o
or q
ual
i
t
y
(C
OP
Q
)) a
re m
e
as
ur
e
d an
d ac
t
io
n pl
a
ns p
ut
in pl
ace to dr
iv
e th
eir i
mp
r
ov
em
en
t – th
es
e
are regul
ar
ly repor
ted
–
Group and divisional governance framewor
ks
(including Delegation
of Authorit
y
) ensure
a close working relationship betw
een legal
and commercial teams (including qualit
y) to
manage risks
–
Fe
w
er q
ual
i
t
y i
s
su
e
s at l
a
unc
h of
new product
s
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
52
9
.
CY
BER S
ECURI
T
Y – Imp
ac
t of e
nter
p
r
is
e or pr
odu
c
t c
y
b
er eve
nt
RISK OWNE
R
Chief Financial Officer
TREND
—
1
0.
LEGA
L A
ND C
OMPL
I
A
NCE – S
igni
fi
ca
nt eth
ic
al br
eac
h or f
ail
ing to m
eet co
ntr
a
c
tua
l obl
iga
tion
s
RISK OWNE
R
Group General Counsel
TREND
—
C
y
b
er a
t
t
ac
k
s s
ee
k
in
g to co
mp
r
om
is
e t
he
confidentialit
y,
integrit
y and availab
ilit
y of
IT s
y
s
te
m
s an
d th
e da
t
a he
l
d on t
he
m ar
e a
con
ti
nu
in
g r
i
sk
. We op
e
r
a
te in m
ar
ke
t
s a
nd
pr
o
du
c
t ar
e
as w
h
ic
h ar
e k
no
w
n to b
e of i
nt
er
e
st
to cybe
r criminals
. Digitalis
ation and increased
interconnectiv
it
y of
our product
s intensify the risk
and the
number of areas under
potential attack.
How this
could impact our strategy
or business model
–
Compr
omised confidentialit
y
, int
egr
it
y and
av
a
il
ab
il
i
t
y o
f our a
s
s
et
s r
e
su
lt
ing f
r
o
m a
c
y
b
er at
tac
k
, imp
a
c
ti
ng o
ur ab
il
i
t
y to d
el
i
v
er
to customers and, ultimately
, financial
per
for
mance and
reput
ation
–
E
x
p
os
ur
e to si
gn
if
ic
a
nt l
os
s
e
s in th
e e
ve
nt of
a c
y
b
er s
e
cur
it
y b
r
ea
ch
, p
ar
tic
ul
a
r
l
y re
l
at
in
g
to ou
r se
c
ur
i
t
y p
r
od
uc
t
s
. T
h
e
se i
nc
lu
de n
ot
onl
y cu
s
tom
er l
os
s
e
s
, bu
t al
so th
o
se o
f a
potentially large clas
s of third par
ties
E
xa
mp
l
e
s of h
ow w
e ma
na
g
e th
is r
i
sk
–
Bo
a
r
d ov
er
sigh
t of th
e ap
pr
o
ac
h to mi
ti
ga
tin
g
c
yber r
isk
–
Pro
acti
ve focus on
information and cyber
se
c
ur
i
t
y r
isk
s su
pp
or
te
d by a s
t
ro
ng
gover
nance fr
ame
wor
k
–
Group
-w
ide asse
ssment of critic
al
information assets and protection to
enhance secur
it
y
–
Information Securit
y Awarene
ss progr
amme
–
S
ec
ur
i
t
y mon
ito
r
in
g to p
r
ov
i
de
ea
r
ly d
ete
c
ti
on o
f ho
st
il
e ac
t
i
v
it
y on
Sm
it
hs n
et
wor
k
s a
nd a
n in
ci
de
nt
management
proces
s
–
Par
tnership and monitor
ing arr
ang
ements
in pl
ace w
it
h cr
iti
ca
l th
ir
d p
ar
tie
s
, i
nc
lu
din
g
communications ser
vice prov
ider
s
–
C
ybe
r risk analysis and mitigation pro
ces
ses
embedded
in t
he product
lifecycle process
to increase resil
ience
Example
s of
how we know
the controls
are working eff
ecti
vely
–
Fo
r
ma
l r
ev
i
e
w
s w
it
h th
e E
xe
c
ut
i
ve
Co
mm
it
t
ee a
nd t
he B
o
ar
d
–
Vulner
abilit
y scanning/event repor
ting
–
E
x
ternal rev
iew
s of vulner
abilit
y con
trol
s
–
Mandator
y staf
f train
ing
–
Compl
iance with rec
ognised s
tandar
ds
We ha
ve m
or
e th
an 14
,70
0 c
ol
le
a
gu
e
s in m
or
e
th
an 5
0 co
un
tr
i
e
s
. In
di
v
i
du
al
s may n
ot a
ll b
e
ha
ve
in a
cco
r
da
nc
e w
it
h th
e Gr
ou
p’s Valu
es a
n
d in
accordance with ethical and legal requirements.
We
oper
ate within
increasingly complex
legal
regimes, of
ten in
highly regulated markets and
with governments
, customers and suppliers
re
qu
ir
i
ng s
t
r
ic
t a
d
he
re
nc
e to l
a
w
s. We m
ay f
a
il
to de
l
i
ve
r con
tr
ac
te
d pr
o
du
c
t
s a
nd s
e
r
vi
ce
s or
fa
il i
n ou
r co
nt
r
a
c
tu
al e
xe
cu
ti
on d
ue t
o de
l
ay
s o
r
breaches by our suppliers or
other counterpar
ties.
How this
could impact our strategy
or business model
–
Eth
ic
s o
r co
mp
l
ian
ce b
r
ea
ch c
a
us
e
s ha
r
m
to our
reputation, financial perfor
mance,
cu
st
om
er r
el
a
ti
on
sh
ips a
nd o
ur a
bi
li
t
y to
at
tr
ac
t an
d r
et
ain t
a
le
nt
–
Failure to
comply with tr
ade compliance
(i
mp
or
t an
d ex
po
r
t
) le
ad
s to si
gn
if
ic
a
nt f
in
e
s
and/or delays procurement or
supplies
–
Fai
lur
e to m
e
et s
tr
i
c
t co
nd
it
io
ns w
i
th
in
gover
nment contrac
ts
, par
ticul
ar
ly in the
US
, co
ul
d pr
e
v
ent u
s bi
dd
in
g for c
on
tr
a
c
t
s
or h
av
e oth
er s
e
r
io
us f
i
na
nc
ial a
nd
reputational consequences
–
Breach of contrac
t resulting in significant
ex
pe
ns
e
s du
e to di
sp
u
tes a
nd c
l
ai
ms
, l
os
s
of cu
s
tom
er
s, da
ma
ge t
o our r
e
pu
t
ati
on w
i
th
other customers
/prosp
ecti
ve customer
s
,
an
d lo
ss o
f r
ev
en
ue a
nd p
r
of
i
t due t
o hi
ghe
r
cost
s, liquidated damages or other penalties
–
Contr
act
s
, par
ticul
arly thos
e with
governments
, may in
clude terms that
provide
for u
nl
im
ite
d l
ia
bi
li
ti
e
s, i
nc
lu
di
ng fo
r lo
s
s of
profi
ts
, IP i
ndemnitie
s, per
petual war
r
anties
or al
l
ow
i
ng t
he c
ou
nter
p
a
r
t
y to c
an
ce
l
,
mo
di
f
y or ter
m
in
ate un
il
at
er
a
ll
y an
d s
ee
k
alte
r
n
ati
v
e s
ou
rc
e
s of su
pp
ly a
t our e
x
pe
ns
e
E
xa
mp
l
e
s of h
ow w
e ma
na
g
e th
is r
i
sk
–
Eth
ic
s a
nd C
o
mp
li
an
ce te
am r
un a pr
o
ac
ti
ve
pr
o
gr
a
mm
ati
c ap
pr
o
a
ch
, ar
e
as of w
h
ic
h ar
e
at di
f
f
er
en
t st
a
ge
s of m
at
ur
i
t
y i
nc
lu
di
ng:
–
Ma
na
gin
g an i
nd
ep
en
de
nt ‘
Sp
ea
k Ou
t
’
repor
ting line and investigations process
with communications encour
aging the
repor
ting of ethics violations (includes
abi
l
it
y to re
po
r
t ano
ny
m
ou
sl
y an
d a no
n-
retaliation pol
ic
y)
–
A
nti-briber
y and anti-corr
uption and other
man
d
ator
y t
r
ai
nin
g fo
r al
l em
pl
o
ye
e
s on
-
li
ne a
nd i
n pe
r
s
on t
r
ai
ni
ng w
i
th p
r
oc
e
ss
for monitoring and
repor
ting
compliance
–
Po
l
ici
e
s an
d pr
o
ce
s
s to m
it
ig
ate r
i
sk
s
inc
lu
di
ng p
ol
i
cie
s a
nd p
r
oc
ed
ur
e
s to
mitigate distributor and agent
-rel
ated
risk
s, including d
ue diligence, con
tr
actual
control
s and internal approv
al
s
–
A
nti-tr
ust tr
aining pro
gr
ammes and
guidance and dawn r
aid proce
sse
s
–
Moder
n Slav
er
y and T
ransp
arenc
y
Statement and procedure
s to reduce
the r
isk of m
o
de
r
n sl
a
v
er
y w
it
hi
n th
e
Group and ou
r supply
chain
–
Net
wor
k of trade compliance of
ficer
s
ac
ro
s
s th
e Gr
o
up w
h
o mo
ni
tor u
pc
om
in
g
ch
an
ge
s in r
e
gu
l
ati
on a
nd o
v
er
s
e
e im
po
r
t
and expor
t ac
tiv
ities
–
Monitoring and acting on
upcoming
legislati
ve changes
–
Multi-func
tional progr
amme for General
Data Protection Regulation (GDPR)
compliance
Example
s of
how we know
the controls
are working eff
ecti
vely
–
Multiple sour
ces to asse
ss cultur
e including
M
y S
ay r
e
s
ult
s
, ‘
Sp
e
ak O
ut
’ r
ep
or
t
s
, Eth
ic
s
Pul
se sur
vey
s, internal audi
t findings
,
ex
it i
nter
v
i
ew
s a
nd e
thi
c
s qu
e
s
ti
on
s in
per
for
mance re
vie
ws
–
Monitoring and repor
ting on compliance
with
ethics and compliance policies
, on training
statistic
s, on investigations, on results of the
Ethics Pul
se metr
ics (E
xecuti
ve Commit
tee
an
d Au
di
t & Ri
sk C
om
mi
t
te
e o
ve
r
si
ght
)
–
Di
v
i
si
on
al l
eg
al te
am
s em
be
d
de
d in t
he
business
, working cross-f
unctionally
throughou
t the con
tr
ac
t lifec
ycle, contrac
t
r
is
k too
l r
ol
l
ed o
ut i
n th
re
e di
v
i
si
on
s an
d
us
ed t
o as
s
e
s
s mi
ti
gat
io
n of r
i
sk t
hr
ou
gh
contrac
t negotiations
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
53
Th
e Di
re
c
tor
s h
av
e dete
r
min
ed t
hat a th
re
e
-y
ea
r per
iod to 31 Jul
y
2
0
25 i
s an ap
pr
op
r
iate ti
mef
r
am
e for t
he v
ia
bil
it
y as
se
s
sm
ent
.
Th
e s
ele
c
ted p
er
i
od i
s con
sid
er
ed to b
e ap
pr
op
r
iate a
s, b
as
e
d
on th
e his
tor
i
c
al pe
r
for
ma
nce of t
he G
ro
up, a thr
e
e-
y
ea
r out
lo
ok
re
pr
e
se
nt
s an opt
imum b
al
a
nce of l
on
g-te
r
m pr
oj
ec
ti
on an
d
acceptable fore
cas
ting accur
ac
y. The three
-ye
ar viabili
t
y
as
s
es
sm
ent t
imef
r
a
me al
so ta
kes into a
cco
unt co
nsi
der
ation
s
suc
h as th
e mat
ur
i
t
y of t
he Gr
o
up’
s bo
r
r
ow
in
g f
ac
ili
ti
es a
nd
the c
ycl
ic
al
it
y of the p
er
for
m
anc
e of the G
r
oup’s under
l
y
ing
mar
ket
s
. In m
aki
ng th
is v
ia
bil
it
y as
se
s
sm
ent
, the D
ir
ec
to
r
s ha
ve
con
sid
er
ed t
he c
ur
r
ent f
ina
nci
al p
osi
tio
n and p
r
osp
e
c
t
s of the
Gr
oup, in
clu
din
g th
e cur
r
ent y
e
ar bu
sin
es
s p
er
for
m
anc
e, the
det
aile
d op
er
ating p
l
an for 2
02
3 a
nd fo
re
c
as
t
s fo
r 2
0
24 a
nd 2
0
2
5.
Ag
ain
st t
he
s
e fi
nan
cia
l pr
oje
c
ti
ons
, t
he Di
re
c
tor
s to
ok i
nto acco
unt
the p
r
inc
ip
al r
is
k
s (a
s ou
tl
ine
d on p
ag
es 4
8 to 5
3
) to de
vel
op a s
et
of pl
au
sib
le s
cen
ar
io
s (
as s
et ou
t ov
er
l
eaf
) wi
th p
otenti
all
y hig
h-
impact outcomes.
In addition t
o the scenario specif
ic assumptions (detailed overleaf
)
the p
r
inc
ip
al as
s
umpt
ion
s for t
his t
hr
ee
-
ye
ar v
iab
il
it
y as
se
s
sm
ent
ar
e as fo
ll
ow
s:
–
F
Y2
0
2
3 for
ec
a
st
s a
re b
a
se
d on th
e det
ail
ed o
pe
r
ati
ng
pl
an r
ef
le
c
tin
g the a
c
tu
al F
Y
2
0
2
2 pe
r
for
ma
nce
–
F
Y2
0
2
4 an
d F
Y
2
0
25 a
r
e ba
se
d on f
or
ec
a
st p
er
cent
a
ge
gr
ow
th r
ate
s f
r
om th
e F
Y
2
0
2
3 fo
re
c
as
t
–
Th
e se
v
er
e bu
t pl
au
sib
le do
w
n
sid
e sc
ena
r
io fo
r the r
e
cur
r
e
nce
of CO
V
I
D-
1
9 dis
r
upt
ion h
as b
ee
n mo
del
le
d as
su
min
g a
significant decline in
demand and supply
chain disruption
(a
s ou
tl
ine
d in S
cen
ar
i
o 1 on p
ag
e 5
5
)
–
No mitigating activ
ities such as fur
ther restr
uc
tur
ing
or th
e acce
s
s to ad
di
tio
nal f
in
anc
ing h
av
e be
en r
ef
le
c
ted
in the f
or
ec
a
s
t es
ti
mate
s
Co
nsi
der
ation w
a
s th
en gi
v
en to th
e ma
gni
tud
e of th
e gr
os
s r
i
sk
s
and t
heir p
otent
ial im
pa
c
t, di
r
ec
tl
y or in
dir
ec
t
ly, on the G
r
oup’s
fu
tur
e p
er
for
m
anc
e and l
iq
uidi
t
y
. T
he a
ss
e
s
sme
nt inc
lud
ed s
tr
e
s
s
tes
ti
ng of th
e Gr
ou
p’
s fin
anc
ial c
a
pa
cit
y to abs
or
b t
he im
pa
c
t of
suc
h ad
v
er
s
e e
vent
s
, ei
th
er in
di
v
idu
al
ly or in c
omb
inat
ion
, an
d
w
hat mi
tig
atin
g ac
ti
on
s the G
r
oup c
oul
d ta
ke to re
sp
on
d to the
m
in or
de
r to pr
otec
t i
t
s bu
sin
es
s
.
Th
e Di
re
c
tor
s a
l
s
o con
si
der
e
d the G
r
oup’s abili
t
y to r
aise
add
iti
on
al l
iqui
dit
y. In per
for
mi
ng th
is as
s
e
s
sme
nt, t
he Di
re
c
tor
s
hav
e t
aken co
mfor
t fr
o
m the d
i
ver
sit
y of the Gr
o
up’
s bus
ine
s
s
es
acr
os
s d
if
fere
nt mar
ket
s
, in
du
st
r
ie
s
, ge
ogr
aphie
s
, pr
o
duc
t
s a
nd
cus
tom
er
s
. In o
r
der to e
nsu
re c
on
sis
ten
c
y, the b
as
e c
as
e us
e
d
for th
e thr
e
e-
y
ear v
i
abi
li
t
y a
s
se
s
sm
ent ha
s al
so be
en r
ec
on
cile
d
aga
ins
t di
v
i
sio
nal i
mp
air
m
ent r
ev
i
ew m
od
el
s
.
Ba
se
d on t
he r
ob
us
t as
s
e
ss
ment
, th
e Dir
e
c
tor
s c
onf
ir
m th
at th
ey
hav
e a r
ea
so
nab
le e
xp
ec
t
ati
on th
e Gr
ou
p w
ill r
em
ain v
ia
ble f
or
the p
er
i
od b
ein
g as
s
es
s
e
d and w
il
l co
ntinu
e to op
er
ate a
nd m
eet
it
s l
iab
il
iti
es a
s th
ey f
al
l du
e. T
he D
ir
ec
to
r
s ha
ve n
o r
ea
so
n to
dou
bt that t
he G
ro
up w
il
l cont
inu
e in bu
sin
es
s b
ey
on
d the p
er
i
od
under asse
ssment
.
The Group’
s business ac
tiv
ities, together with the factor
s
likely to af
f
ec
t i
t
s fut
ure d
evel
opm
ent
, pe
r
f
or
ma
nce an
d
pos
itio
n are s
et ou
t in th
e Str
ate
gic Rep
or
t on pag
es 5 t
o
55. T
he f
ina
nci
al po
siti
on of th
e Co
mp
any, its c
as
h-
flo
w
s,
liquidit
y position and borr
owing fa
cilities are descr
ibed
on pa
ge
s 1
5 an
d 1
6. In ad
ditio
n, th
e note
s to th
e fin
anc
ial
statement
s include the Company
’
s objectives
, policies
and p
roce
s
s
es f
or ma
nag
ing it
s c
a
pit
al; i
t
s fin
anci
al
risk management objec
ti
ves; detail
s of its financial
ins
tr
um
ent
s an
d he
dgin
g ac
ti
v
iti
es; an
d it
s ex
po
sur
es
to cre
dit r
i
sk an
d liq
uidi
t
y r
i
sk
.
Th
e Gr
o
up ha
s und
er
taken a d
et
aile
d go
ing c
onc
er
n r
e
v
ie
w w
ith
a se
ve
re b
ut p
l
au
sibl
e do
w
ns
ide s
ce
nar
i
o t
aki
ng into a
ccou
nt
ev
er
y
thing t
hat h
as b
een l
ea
r
nt sin
ce Mar
ch 2
02
0.
At 31 Jul
y 2
0
2
2 the n
et de
bt of th
e Gr
ou
p w
as £1
5
0
m, a £
8
7
2m
dec
r
ea
se f
r
om 31 Jul
y 2
0
21. At the en
d of Jul
y, the Gr
oup h
ad
av
ail
able c
as
h and s
hor
t-ter
m de
po
sit
s o
f £1
,0
5
6m
. T
he
s
e li
quid
re
s
our
ce
s ar
e im
me
diatel
y av
ai
l
abl
e w
it
h 9
9
% inv
e
ste
d w
it
h
the G
ro
up’
s glo
b
al ba
nk
ing p
ar
tne
r
s
. T
he Gr
o
up’
s deb
t pr
of
ile
sho
w
s an a
ve
r
ag
e mat
ur
i
t
y of 2
.
5 ye
ar
s (
fr
o
m 3.
2 ye
ar
s at 31 J
uly
2
0
21)
, w
it
h the n
ex
t d
ebt m
atur
it
y b
ein
g the €
6
0
0m Eur
ob
on
d in
A
pr
il 2
02
3
.
Th
e Gr
o
up mai
ntai
ns a co
r
e US
$
80
0m co
mmi
t
ted r
e
vo
lv
in
g
cr
edi
t f
ac
ili
t
y fr
om th
es
e b
ank
s w
hi
ch ma
tur
e
s in No
ve
mb
er
2
0
24
. T
he f
a
cil
it
y w
as un
dr
a
w
n at 31 Jul
y 2
0
2
2 and h
as n
ot be
en
dr
a
w
n sin
ce it
s l
a
s
t r
ene
w
al in N
ov
em
ber 2
01
7
. T
his f
a
cil
it
y has an
inter
e
st c
ov
er f
ina
nci
al co
ve
nant
. H
ow
e
ver
, this i
s not f
or
ec
a
st to
pr
ev
ent u
til
is
at
ion at t
he G
ro
up’
s dis
cr
et
ion i
f r
equ
ir
ed
.
The Direc
tors
, having made appropriate enqui
r
ies, have a
re
as
on
abl
e ex
pe
c
ta
tio
n that t
he C
omp
an
y and t
he G
ro
up ha
ve
ade
qu
ate re
s
our
ce
s to co
ntin
ue in o
per
ation f
or a pe
r
io
d of at
lea
s
t 1
2 mo
nths f
r
om t
he date of t
his Re
po
r
t. T
hus
, th
ey c
onti
nue
to ado
pt th
e goi
ng co
nce
r
n ba
si
s of acc
ount
ing in p
r
ep
ar
in
g the
fi
nan
cial s
t
atem
ent
s of th
e Co
mp
an
y and t
he Gr
o
up.
In acc
or
dan
ce w
i
th th
e re
qui
re
ment
s of the 2
018 UK Cor
p
or
ate
Go
ve
r
nan
ce C
od
e, th
e Dir
e
c
tor
s h
av
e as
s
es
s
ed t
he l
ong
er
-ter
m
pr
osp
e
c
t
s of the G
r
oup, t
ak
ing i
nto acco
unt i
t
s cur
r
e
nt pos
it
ion a
nd
a r
an
ge of inte
r
na
l and e
x
ter
n
al f
ac
to
r
s
, inc
lud
ing th
e pr
i
nci
pa
l
r
isk
s d
eta
ile
d on p
ag
es 47 to 5
3 (
the ‘
v
iab
ili
t
y ass
e
s
sme
nt’
).
GOING
C
ONCERN
AN
D VIAB
I
LI
T
Y
S
TAT
E
M
E
N
T
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
54
Scenarios mod
elled
Scenarios
Link to principal risks
Scenario-specific assumptions
Scenario 1
A glob
al e
v
ent, s
uc
h as a si
gni
fi
c
ant
COV
ID-
1
9 resurgence lockdown
, leads
to the e
nfor
ce
d clo
sur
e of ke
y pr
o
duc
ti
on
site
s fo
r a 2-3 m
onth p
er
i
od w
i
th on
go
ing
supply chai
n disruption, low customer
demand and rece
ssio
nar
y circumst
ances
ex
ten
din
g into th
e fol
lo
w
in
g ye
ar
.
Busine
ss continui
t
y
and E
conomy and
geopol
itic
s
–
2
0
% f
al
l in r
ev
enu
e ac
ro
s
s the G
r
oup in F
Y
2
02
3 a
nd a 10% f
al
l
in F
Y
2
0
24 c
omp
ar
e
d to the b
as
e c
a
se
.
–
6
5% r
e
duc
t
ion i
n op
er
at
ing p
r
of
it in F
Y
2
0
2
3 due to pl
ant c
lo
sur
e
s
,
cus
tom
er an
d sup
pl
y cha
in dis
r
upt
ion a
nd a 3
5
% fa
ll in F
Y2
02
4.
–
Inc
r
ea
se
d wo
r
k
ing c
ap
it
al du
e to s
tock b
uil
ds an
d cu
sto
me
r def
aul
t
s.
–
No mi
ti
gati
ng ac
t
i
v
iti
e
s suc
h as r
e
st
r
uc
t
ur
in
g and
headcount reductions
.
Scenario 2
One o
f Joh
n Cr
an
e’
s me
cha
nic
al s
e
al
s i
s
ide
ntif
ie
d as f
a
ult
y and th
e c
aus
e of an
exp
lo
sio
n at a maj
or r
ef
ine
r
y ca
usi
ng th
e
dea
ths of t
wo s
t
af
f a
nd si
gni
fi
c
ant da
mag
e
to the p
l
ant
. Joh
n Cr
a
ne is s
ue
d for t
he
cos
t
s of r
ep
air a
nd r
e
sto
r
at
ion of t
he p
l
ant
in ad
dit
ion to t
he co
ns
eq
uent
ial l
os
s
es
of plant closu
re.
Pr
oduc
t
qualit
y
–
Le
ga
l defe
nce c
os
t
s of £
2
0
m p
er ann
um pl
us a on
e-
of
f pay
m
ent
of £1
0
0
m in F
Y
2
0
2
3 in set
t
lem
ent of de
ce
as
ed
’s cla
ims
.
–
Le
gal d
efenc
e cos
t
s of £
5
m pe
r ann
um ov
er t
he r
ev
i
ew p
er
i
od
in r
el
ati
on to ag
re
em
ent of r
e
s
tor
at
ion c
os
t
s
.
–
Re
sto
r
ati
on c
os
t
s of £
5
0
m spr
e
ad o
ve
r the 3
-
ye
ar r
e
v
ie
w per
iod.
–
Le
gal d
efenc
e cos
t
s of £
25m p
er a
nnum o
ve
r the r
e
v
ie
w pe
r
io
d
in r
el
ati
on to mi
tig
atio
n of co
ns
eq
uent
ial l
os
s cl
a
ims
.
–
One
-
of
f p
a
y
ment of £
25
0
m pa
y
ab
le in F
Y
2
0
2
3 in set
tl
em
ent
of the l
os
s
es c
l
aim
.
–
Insur
ance cl
aim rej
ec
ted.
Scenario 3
Fol
lo
w
in
g a pr
od
uc
t c
y
b
er
-at
tack
, a
ter
r
or
i
sm r
el
ate
d inc
ide
nt occ
ur
s at a
US air
por
t. A
s a cons
e
que
nce
, the U
S
Go
ve
r
nme
nt r
ev
oke
s Smi
th
s Dete
c
ti
on’
s
li
cenc
e. S
a
le
s of Dete
c
ti
on’
s pr
od
uc
t
s to
the U
S mil
it
ar
y an
d al
l oth
er go
ve
r
nm
ent
al
contr
ac
t
s ha
ve b
ee
n ba
nne
d an
d due to th
e
re
pu
tat
ion
al da
mag
e, th
e imp
ac
t o
f the b
an
w
ill s
pr
ea
d to othe
r di
v
is
ion
s
.
Cy
ber secu
rit
y
–
Imm
ed
iate lo
ss o
f all U
S b
as
ed G
o
ver
nment co
ntr
a
c
t
s w
it
hin
Smiths Detection.
–
2
5% f
al
l in oth
er S
mit
hs D
etec
t
ion r
e
ve
nue o
ve
r F
Y
2
0
2
3
.
–
L
os
s of 5
0
% of Inte
rc
onn
ec
t
’s Nor
t
h A
me
r
ic
a r
ev
en
ue.
–
Le
ga
l defe
nce c
os
t
s of £10m per a
nnum
.
–
£100
m f
ine l
ev
ie
d b
y US G
ov
er
n
ment f
or s
ec
ur
i
t
y b
re
ac
h.
–
£
5
0
m com
pen
s
ati
on p
aid to U
S Go
v
er
nm
ent in F
Y
2
0
2
3 in re
sp
ec
t
of pr
ev
i
ou
s pr
od
uc
t
s pu
rc
ha
se
d tha
t may h
av
e s
ec
ur
it
y fl
a
w
s
.
–
In
sur
ance cl
a
im und
er p
ro
du
c
t li
abil
i
t
y i
s not m
et or de
l
ay
ed
out
s
id
e of the r
e
v
ie
w pe
r
io
d.
Scenario 4
Smi
th
s Dete
c
tio
n ar
e fou
nd gu
ilt
y of br
ibi
ng
gover
nment off
icial
s in A
sian countries
in or
de
r to l
an
d sign
if
ic
ant c
ontr
ac
t
s.
Th
is da
ma
ge
s the G
r
oup’s repu
ta
tio
n and
lea
ds to w
or
l
d
w
id
e re
gu
l
ator
s im
po
sin
g
sign
if
ic
ant s
a
nc
ti
ons o
n th
e Gr
oup
.
Le
gal a
nd
compliance
–
Reg
ul
ator
y f
in
es g
lob
al
ly am
ount
ing to £100
m
.
–
L
os
s of al
l f
utu
re r
e
ve
nue i
n bot
h Chin
a and J
ap
an.
–
10% s
al
es e
r
osi
on in D
etec
t
ion’s USA a
nd E
ME
A mar
ket
s du
e
to reputational
damage.
–
£
5
0
m of se
v
er
a
nce c
os
t
s inc
ur
r
e
d.
–
10% f
al
l in r
ev
en
ue w
it
hin ot
her S
mit
hs b
usi
ne
s
se
s du
e to the
reput
ational impact
.
Scenario 5
A maj
or f
ir
e at th
e Joh
n Cr
an
e pl
a
nt
in Cze
ch Rep
ubl
ic r
en
de
r
s th
e fa
cil
it
y
unusable, causing se
vere disr
uption
to production.
Busine
ss
continuit
y
–
L
os
s of si
x mo
nths E
ME
A re
v
enu
e and m
ar
gin i
n F
Y
2
0
2
3.
–
2
0
% r
ed
uc
ti
on in f
ut
ur
e (
F
Y
2
0
24 an
d F
Y
2
0
2
5
) EME
A r
ev
en
ue du
e
to los
s in m
ar
ket sh
ar
e
s and c
omp
eti
ti
v
ene
s
s
.
–
Br
ea
ch of s
upp
ly co
ntr
a
c
t
s le
adi
ng to le
gal d
efen
ce co
s
t
s of £
2
0
m
per a
nnum p
lus a o
ne
-
of
f s
et
t
lem
ent of £
5
0
m in F
Y
2
0
2
3.
–
Ref
ur
bi
shm
ent an
d r
ep
air co
st
s of £5
0
m in Cze
ch Re
pub
li
c
(net of insur
anc
e claim
s).
–
C
os
t
s of inc
r
ea
sin
g ca
pa
ci
t
y at o
the
r Joh
n Cr
an
e si
tes i
ncu
r
s an
add
iti
on
al £
5
0
m of cos
t
.
–
C
api
ta
l ex
pen
di
tur
e on r
e
pl
ac
eme
nt eq
uipm
ent in C
zec
h Repub
l
ic
of £1
0
m (n
et of in
sur
ance cl
a
ims
).
Scenario 6
Co
mbin
ati
on of s
cen
ar
io
s 2 an
d 3.
Pr
oduc
t qualit
y and
Cy
ber secu
rit
y
A
s above.
Th
e Str
ategic Re
po
r
t wa
s app
r
ov
ed b
y th
e Bo
ar
d on 2
2 S
e
ptemb
er 2
0
2
2
.
B
y or
de
r of th
e Bo
ar
d
Pa
ul Keel
CHIE
F E
XEC
U
T
I
V
E O
F
F
ICE
R
01
OVE
RVIEW
02
STRATEGIC
REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
55
I am pl
eas
ed t
o intr
odu
ce our C
or
p
or
ate G
ove
rn
ance Rep
or
t,
in which we descr
ibe our governance arr
angement
s, the
ope
r
atio
n of the B
oa
rd a
nd it
s C
om
mit
te
es
, an
d how t
he
Board dischar
ged it
s responsibilitie
s during the year
.
Fol
lo
w
in
g the C
O
V
ID
-
1
9 disr
uption t
hat s
o man
y of us s
uf
fer
ed
,
this y
e
ar we r
et
ur
n
ed to f
ac
e-to
-f
a
ce Bo
ar
d a
nd C
omm
it
te
e
mee
tin
gs an
d ha
ve h
ad th
e opp
or
tun
it
y to enga
ge w
i
th an
d he
ar
fr
om m
any o
f our c
oll
ea
gue
s in p
er
son
. T
his in
clu
de
d a Bo
ar
d
v
isi
t to our F
l
ex-
T
e
k op
er
at
ion i
n Por
tl
a
nd, T
enn
e
ss
e
e. T
he
re i
s
no su
bs
ti
tute f
or me
eti
ng p
eop
le to r
ec
og
nis
e th
e cha
lle
ng
es t
he
y
fa
ce, t
he as
pir
ation
s the
y h
old a
nd th
e cu
ltur
e w
i
thin w
h
ich t
he
y
ope
r
ate
. Und
er
s
t
and
ing ke
y com
po
nent
s l
ike th
e
se h
el
p the B
o
ar
d
sup
por
t a he
alt
hy b
usin
e
ss
. I
t w
as a
l
s
o go
od to s
ee
, and f
or me
to per
sona
ll
y mee
t w
ith
, s
ome of o
ur sh
ar
eh
old
er
s a
t our C
ap
it
al
Mar
ket
s e
ve
nt and t
he A
GM l
a
st N
ov
em
ber
.
Th
e Bo
ar
d to
ok s
om
e cr
i
tic
al s
tr
ategic d
ec
isi
on
s dur
i
ng th
e ye
ar
,
incl
udi
ng th
e de
cis
ion to s
el
l Sm
ith
s Me
dic
a
l to ICU M
edi
c
al
, Inc
.
Th
e tr
ans
ac
ti
on c
omp
leted i
n Jan
uar
y, and w
e w
ish o
ur fo
r
mer
Smi
th
s Med
ic
al co
ll
ea
gue
s e
ve
r
y succ
es
s m
ov
i
ng fo
r
w
ar
d.
Mor
e inf
or
ma
tio
n ca
n be fo
un
d on p
age 6
1
. Bo
ar
d s
ucce
s
si
on
pl
an
ning h
as a
l
s
o be
en a ke
y foc
us th
is y
ear
. Th
e Bo
ar
d m
ad
e
the d
ec
isi
on to ap
poi
nt Cl
ar
e S
ch
er
r
er a
s Chi
ef F
inan
cia
l O
f
f
ic
er
in A
pr
il, an
d to app
oi
nt Ric
har
d H
ow
e
s as an i
nde
pe
nde
nt Non
-
exec
ut
i
ve D
ir
ec
tor i
n S
eptem
ber 2
02
2
. T
he B
oa
r
d no
w com
pr
i
se
s
six m
ale
s an
d f
i
ve fe
mal
es
, t
wo Di
re
c
tor
s fr
om his
to
r
ic
al
ly
und
er
-r
ep
re
s
ente
d ethn
ic gr
ou
ps an
d se
v
en w
it
h a bir
thp
l
ace
or b
ackgr
o
und o
ut
s
ide t
he UK
. Mor
e info
r
mati
on c
an b
e fo
und
in the N
omi
nati
on & G
ov
er
n
anc
e Co
mmi
t
tee Re
por
t on p
ag
e
6
6. Fo
r a Gr
ou
p suc
h as S
mit
hs
, w
it
h a di
ve
r
s
e wo
r
k
for
ce a
nd a
w
ide g
eo
gr
a
phi
c spr
e
ad
, that d
i
ver
sit
y is cr
uc
ial
, b
ut i
t is e
qual
ly
imp
or
tant t
hat th
e Dir
e
c
tor
s a
re c
a
pa
ble a
nd su
it
abl
y ex
pe
r
ien
ced
indi
v
i
dua
l
s
. T
he b
iog
r
ap
hie
s of o
ur Dir
e
c
tor
s c
a
n be fo
und o
n
pa
ge
s 5
8 an
d 59
.
Hav
i
ng a s
tr
on
g go
ve
r
nan
ce f
r
am
e
wo
r
k tha
t sup
por
t
s th
e
Gr
oup’s long-
ter
m s
tr
ategic go
al
s is cr
i
tic
al i
f w
e ar
e to sup
por
t
the b
usi
ne
s
s and e
nha
nce th
e inter
e
s
t
s of al
l our s
t
akeh
old
er
s
for th
e f
utu
r
e. T
he B
oa
r
d cont
inu
all
y keep
s it
s g
ov
er
n
ance
ar
r
a
ng
eme
nt
s und
er r
ev
i
ew. D
ur
in
g the y
ea
r the B
o
ar
d ag
re
ed
to the fo
r
ma
l con
s
tit
ut
ion of t
hr
ee n
ew C
om
mit
tees: t
he S
ci
enc
e,
Sus
t
ain
abi
li
t
y & E
xcell
enc
e Co
mmi
t
tee; th
e Remu
ner
ation &
People Commit
tee;
and the Finance Committee which each
ev
olv
e
d fr
om t
he pr
e
v
io
us Rem
uner
ation a
nd T
r
an
s
ac
ti
on
Committees
respecti
vely
.
Th
e
se n
ew C
om
mit
tees a
llo
w fo
r gr
eate
r ov
er
s
ight in t
he
ar
ea
s of inn
ov
at
ion
, su
s
tai
nab
il
it
y
, pe
op
le an
d fi
nan
cia
l agil
i
t
y
to hel
p be
t
ter su
pp
or
t the S
mit
hs Val
ue E
ngi
ne, t
hat co
nne
c
t
s
our P
ur
p
os
e, o
ur s
tr
eng
th
s and o
ur pr
ior
it
ie
s of Gr
o
w
th,
E
xecution and People.
F
inal
ly, I wou
ld l
ike to th
ank th
e Sm
ith
s wo
r
k
for
ce a
nd m
y
fel
lo
w Dir
e
c
tor
s fo
r the
ir w
or
k on s
har
e
hol
de
r
s’ beha
lf th
is
ye
ar
. In par
tic
ul
ar
, I wou
ld l
ike to tha
nk T
any
a Fr
atto w
h
o w
ill
be r
etir
ing fr
o
m the B
o
ar
d at th
e con
clu
sio
n of the 2
02
2 A
GM.
Dur
i
ng he
r tenu
re
, T
any
a ha
s pr
ov
i
de
d an in
v
alu
abl
e cont
r
ibu
ti
on
to the C
omp
an
y an
d I wo
uld l
ike to th
ank h
er fo
r her w
i
se c
oun
se
l
and h
umo
ur alo
ng t
he w
a
y. On beh
alf of t
he B
oa
r
d, I w
oul
d al
so
like to th
ank J
ohn S
hip
s
ey fo
r his s
er
v
ic
e to Smi
th
s as Ch
ief
F
inan
cia
l O
f
f
ice
r until A
pr
il thi
s ye
ar
.
I hop
e yo
u f
ind t
he fo
ll
ow
in
g r
ep
or
t inter
es
ti
ng
, and
, alo
ng w
i
th my
fel
lo
w Co
mmi
t
tee C
hair
s, I w
oul
d be h
app
y to dis
c
us
s an
y of the
content a
t our up
co
ming A
GM
.
Sir Ge
or
ge W. Buckley
C
HAIR
MAN
0
3 G
over
nance
5
6
-9
2
UK Co
r
por
ate Gover
n
ance C
o
de C
omp
lia
nce
In F
Y
2
0
2
2, a
nd at t
he date of t
his r
ep
or
t, t
he C
omp
an
y ap
pl
ied t
he
Pr
i
nci
ple
s an
d com
pl
ie
d w
ith a
ll P
r
ov
i
sio
ns of t
he UK C
or
p
or
ate
Go
ve
r
nan
ce C
od
e (th
e Co
de
) in f
ul
l
, as ex
pl
a
ine
d thr
o
ugh
ou
t
this Re
po
r
t. A cop
y of t
he C
od
e is av
a
il
ab
le f
ro
m th
e F
inan
cia
l
Repor
ting Council
’
s website at
fr
c.org.uk
. Further information on
comp
l
ianc
e w
it
h the C
od
e c
an b
e foun
d as f
oll
o
ws:
Bo
ar
d L
ea
der
ship and C
om
pa
ny P
ur
p
os
e
5
7
Div
ision of respon
sibilities
62
Evaluation, composition and succession
6
4
Au
dit
, r
is
k and i
nter
na
l cont
r
ol
69
Remuneration 75
C
HAI
R
MAN
’
S
I
NTRO
D
U
C
TI
O
N
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
56
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
The p
r
ima
r
y role of t
he Bo
ar
d is to l
ea
d Smith
s in a
wa
y that e
nsu
re
s it
s lo
ng
-ter
m su
cces
s
. Th
e Bo
ard
is re
sp
on
sib
le fo
r app
rov
in
g Gr
oup s
tr
ate
g
y and f
or
overse
eing its implementation. Subjec
t to applicable
legislation and regul
ation and the Ar
ticles of A
s
sociation,
the Di
rec
tors m
ay exerc
is
e all p
owe
rs o
f the C
om
pan
y
.
Th
e Bo
ar
d e
xer
cis
e
s ov
er
sight of ou
r Co
mp
any a
nd in d
oin
g so
ens
ur
es t
hat t
he s
tr
a
teg
y is c
on
sis
tent w
i
th o
ur P
ur
po
s
e and i
s
del
i
ve
r
ed in l
in
e w
ith o
ur Val
ue
s
. In sup
po
r
t of pro
tec
ti
ng an
d
gr
ow
in
g s
ta
keho
lde
r v
alu
e the B
o
ar
d co
ntinu
all
y mo
nito
r
s th
e
inter
n
al cont
r
ol
s
, r
i
sk ma
na
gem
ent an
d v
iab
il
it
y of the C
omp
an
y,
as w
ell a
s co
nsi
der
ing the v
i
ew
s o
f st
akeh
ol
der
s.
Th
e Bo
ar
d h
as ap
pr
o
ve
d a go
ve
r
na
nce f
r
a
me
wo
r
k of s
y
s
tems
and c
ontr
ol
s to ef
fe
c
ti
ve
ly di
sc
har
g
e it
s co
ll
ec
t
i
ve r
e
sp
ons
ibil
i
t
y.
The fr
ame
wor
k includes the delegation
of specific author
ities
to the B
oa
r
d’s fi
ve C
om
mit
tees
, a
s set o
ut b
elo
w. T
he T
er
m
s of
Refer
enc
e for t
he
se C
om
mi
t
tee
s
, w
hic
h we
re r
e
v
ie
we
d dur
ing
the y
ea
r
, can be f
oun
d on ou
r we
bsi
te w
w
w.smi
th
s.
com
.
BOARD COMMITTEES
BOARD
Gover
nance model
Nomination &
Governance
Com
mit
te
e
Aud
it & Ri
sk
Com
mit
te
e
Remuneration
& People
Com
mit
te
e
Science, Sustainabilit
y
& E
xcelle
nce
Com
mit
te
e
Fin
ance
Com
mit
te
e
EXECUTIVE MANAGEMENT COMMITTEES
E
xecu
ti
ve Co
mmi
t
tee
A
ssis
ts the Chief Executi
ve Of
f
icer in
discharging his responsibilities and is
collec
tively re
sponsible for implementing
str
ategy, ensuring consistent execution and
emb
e
dd
in
g th
e cul
tu
r
e an
d Val
ue
s
.
Investment Co
mmittee
A
ss
es
ses high-
value and high-r
isk pro
pos
al
s,
ca
pi
t
al e
xp
en
di
t
ur
e, a
s
se
t di
sp
os
a
l an
d sp
ec
ia
l
revenu
e expenditure proje
ct
s which requir
e
Chi
ef E
x
ec
ut
i
ve O
f
fi
ce
r or B
oa
r
d ap
pr
o
v
al
.
Disclosure Committee
Ad
vis
e
s th
e Ch
ief E
xec
ut
i
ve O
f
fi
ce
r and t
he
Board on the iden
tific
ation of
inside in
formation,
an
d the t
im
in
g an
d met
ho
d of i
t
s di
s
cl
os
ur
e.
Rev
i
e
w
s an
d ma
kes
recommend
ations to
the
Bo
ar
d o
n th
e s
tr
u
c
tu
r
e,
size and composition
of th
e Bo
a
r
d an
d it
s
Co
mm
it
t
ee
s
. It a
l
s
o l
ea
ds
the p
r
o
ce
s
s fo
r Di
re
c
to
r
appointmen
ts and Director
and senior
management
succes
sion planning.
O
v
er
s
e
e
s th
e on
go
in
g
sui
t
ab
il
it
y of th
e
Group’
s
gover
nance
framework.
En
su
r
es t
he i
nte
gr
i
t
y o
f th
e
Group’
s financial repor
ting
and audit proces
se
s, and
the main
tenance
of sound
internal control and risk
management
sy
stems,
including over
si
ght of
the
inte
r
na
l au
di
t f
unc
t
io
n an
d
the G
r
ou
p’s ethic
s a
nd
compliance acti
vi
ties.
Manages the rel
ationship
w
it
h th
e ex
t
er
n
al a
udi
to
r
,
including making
recommend
ations to
the
Bo
ar
d a
nd s
ha
r
eh
ol
de
r
s in
rel
ation to
the appointment
an
d re
-
ap
po
int
me
nt of t
he
ex
ternal auditor
.
Responsible f
or the Group
’
s
Direc
tors’ Remuneration
Po
li
c
y a
nd r
e
v
ie
w
s an
d
overs
ees the Group
’
s
remuner
ation str
ategy for
the E
xec
ut
i
ve D
ir
e
c
to
r
s an
d
senior managemen
t.
O
v
er
s
e
e
s
, on b
eh
al
f of th
e
Boar
d, the implementation
of th
e Pe
op
le s
t
r
ate
g
y
for the Group, including
the Group
’
s approach
to di
v
er
s
i
t
y, eq
ui
t
y
and inclusion.
Ov
erse
es the Group
’
s
cul
tu
r
e an
d ap
pr
o
ac
h to
science, sustainabilit
y
an
d exce
ll
en
ce (
S
SE
).
This includes review
ing
the scientific and
techn
ology strategy
,
inn
o
v
ati
on
, r
e
se
a
rc
h an
d
development; over
seeing
the Group
’
s sustainabilit
y
str
ateg
y; over
se
eing
the Smiths Excellence
System;
and review
ing and
determining S
SE target
s,
metric
s and KPIs rel
ating
to remuneration.
O
v
er
s
e
e
s an
d pr
o
v
id
e
s
agi
l
it
y to the G
r
ou
p’s
appro
ach to capital
management
including
so
ur
ce
s a
nd u
se
s o
f c
as
h,
por
t
folio acti
vit
y, changes
to c
ap
it
al s
t
r
uc
t
ur
e a
nd
budgetar
y planning.
This Commit
tee evo
lved
from the T
r
ans
action
Commit
tee which
prev
iously focused on
suppor
ting the Smiths
Medical s
ale.
READ MORE
Committee Report
P
69
READ MORE
Committee Report
P
75
READ MORE
Committee Report
P
89
SEE MORE
www.smiths.com
READ MORE
Committee Report
P
66
BOA
R
D LE
AD
ER
S
HIP A
ND C
O
MPAN
Y P
UR
P
OS
E
R
OL
E
OF
T
HE
B
O
A
R
D
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
57
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Sir George Bu
ckley
Chairman
A
pp
oi
nte
d: 1 Au
gu
s
t 2
013
N
R
S
F
I
Skill
s and e
xper
ience:
Sir George has ex
tensive exper
ience of large, multi-
ind
us
t
r
y bus
in
e
s
se
s o
pe
r
at
in
g in g
lob
a
l ma
r
ket
s a
nd h
as h
ad a l
on
g c
ar
e
er
in en
gi
ne
er
i
ng a
nd i
nn
ov
atio
n. A
s Cha
ir
m
an
, Si
r Ge
o
r
ge en
s
ur
e
s ef
f
ec
t
i
v
e
com
mu
nic
a
ti
on w
i
th ke
y s
t
akeh
ol
d
er
s a
nd t
hat t
he B
o
ar
d p
r
ov
i
de
s s
t
ro
n
g
le
ad
er
s
hi
p an
d gui
da
nc
e fo
r th
e exe
cu
ti
v
e m
an
ag
em
ent te
am
. D
ur
i
ng t
he
ye
ar
, Si
r Ge
o
r
ge p
r
ov
i
de
d in
v
al
ua
bl
e le
ad
er
ship o
n th
e s
al
e of Sm
it
hs
Me
dic
a
l al
on
gs
id
e hi
s su
pp
or
t of th
e F
in
an
ce C
om
mi
t
te
e. H
e ho
ld
s a P
hD i
n
Elec
tr
ical En
gineer
ing.
Career experience:
Sir G
e
or
g
e ha
s he
l
d pr
e
v
io
us r
o
le
s of C
hai
r
ma
n an
d
CEO at 3
M C
om
pa
ny, a U
S ba
s
ed g
lo
ba
l te
chn
o
lo
g
y co
mp
an
y an
d D
ow J
on
e
s
3
0 co
mp
on
ent
, Ch
ai
r
ma
n an
d CEO o
f Br
u
ns
w
i
ck C
o
r
po
r
a
tio
n an
d Ch
ief
T
ech
no
lo
g
y O
f
fic
er f
or ap
p
li
an
ce
s
, mo
tor
s a
nd c
on
tr
ol
s at Em
er
s
o
n El
ec
tr
ic
Co
mp
an
y. Sir G
e
or
g
e al
so br
ings n
o
n-
e
xec
u
ti
v
e ex
pe
r
i
en
ce to th
e B
oa
r
d,
ha
v
in
g se
r
ve
d as N
on
-
e
xec
ut
i
v
e Dir
e
c
to
r at Pe
ps
iC
o In
c
. an
d Hi
t
ach
i L
im
ite
d
,
an
d as Ch
ai
r
ma
n of S
ta
nl
ey B
l
ac
k & De
c
ker
, Inc
.
Paul
Keel
Chief Executi
ve Of
ficer
A
pp
oi
nte
d: 25 M
a
y 2
0
21
Skill
s and e
xper
ience:
Pa
ul h
as a s
t
r
on
g tr
ack r
ec
or
d o
f de
li
v
e
r
in
g r
es
ul
t
s
in innovation-le
d and diversi
fied global industr
ial technology busine
sse
s.
His i
nter
nati
on
al e
xp
er
ienc
e po
si
t
ion
s hi
m w
el
l to al
lo
w S
mi
th
s to de
l
i
ve
r on
it
s s
ign
if
i
c
ant p
ote
nti
al
. H
e is a g
r
a
du
ate of C
a
r
le
ton C
ol
l
eg
e an
d Ha
r
va
r
d
Business School.
Career experience:
Pr
ior to j
oin
in
g Sm
it
hs P
a
ul w
or
ked at 3M C
o
mp
an
y
bet
we
en 2
0
0
4 an
d 2
0
2
0, w
ithi
n th
e US a
nd U
K
. D
ur
i
ng t
hi
s pe
r
io
d
, he l
ed
a num
be
r of gl
ob
a
l bu
sin
e
s
s
es i
nc
lu
din
g th
e $
5
bn r
e
v
en
ue C
on
su
me
r
Bus
in
e
s
s Gr
o
up an
d s
ev
er
al in
du
st
r
ia
l bu
si
ne
s
s
e
s r
an
gi
ng i
n si
ze f
ro
m
$
4
00
m i
n re
v
en
ue to o
v
er $1bn. He a
l
s
o le
d a nu
mb
er o
f ente
r
p
r
is
e f
un
c
ti
on
s
inc
lu
di
ng M
anu
f
ac
t
ur
ing an
d S
upp
ly C
ha
in
, Mar
ketin
g an
d S
al
e
s, S
tr
ateg
y
an
d Bus
in
e
s
s De
v
elo
p
men
t. I
n th
e sh
or
t pe
r
io
d b
et
wee
n 3M a
nd S
mi
th
s
, P
au
l
completed a
v
ariet
y of consulting projec
ts
. Paul
’
s other experience includes
ro
le
s o
f inc
r
ea
si
ng r
e
sp
o
ns
ibi
l
it
y at Ge
ne
r
al E
l
ec
t
r
ic
, M
cK
i
ns
e
y & Co
mp
a
ny
an
d Ge
ne
r
al M
il
l
s
.
Cl
are S
cher
r
er
Chief Financial Of
f
icer
A
pp
oi
nte
d: 2
9 A
p
r
il 2
0
2
2
. C
l
ar
e w
il
l s
t
an
d fo
r ele
c
t
io
n at th
e 2
0
2
2 A
GM
Skill
s and e
xper
ience:
Cl
ar
e h
as e
x
te
ns
i
v
e ex
pe
r
ie
nc
e w
or
k
in
g w
it
h an
d
ad
v
i
sin
g a b
r
oa
d r
a
ng
e of in
du
s
tr
i
al c
om
pa
ni
es a
r
ou
nd t
he g
lo
be
. Sh
e ha
s
pa
r
tic
ul
ar
ly re
le
v
an
t ex
pe
r
i
enc
e in t
he s
e
c
tor
s in wh
ic
h Sm
it
hs h
as s
t
r
on
g
po
si
ti
on
s
, in
clu
di
ng e
ne
r
g
y, saf
et
y & se
cu
r
it
y and a
er
o
sp
a
ce. S
h
e ho
ld
s a B
A
fr
o
m Ha
r
va
r
d Un
i
ve
r
si
t
y and an M
B
A f
ro
m th
e Ha
r
v
ar
d Bu
si
ne
s
s S
ch
o
ol
.
Career experience:
Cl
ar
e j
oi
ne
d Sm
it
hs f
r
o
m Go
ld
ma
n S
ac
h
s w
he
re s
he
sp
ent m
or
e t
ha
n 25 y
e
ar
s
, a
nd w
a
s a P
ar
tn
er fo
r m
or
e th
an a d
ec
a
d
e, an
d
mo
st r
e
ce
nt
ly C
o
-H
ea
d of t
he G
lo
ba
l In
du
st
r
ia
l
s b
us
in
e
ss
. P
r
i
or to j
oi
nin
g
Sm
it
hs
, Cl
are h
ad b
e
en a c
lo
se a
d
v
i
se
r to th
e Gr
o
up f
or a n
umb
er o
f ye
ar
s,
inc
lu
di
ng h
av
i
ng a
d
v
is
e
d on t
he s
a
le of S
mi
t
hs M
ed
ic
al a
s w
el
l as h
a
v
ing
contributed to the development of
the str
ategy announced at the
Novemb
er
2
0
21 C
ap
it
al M
ar
ke
t
s ev
e
nt
. Pr
ior to G
ol
dm
an S
a
ch
s
, Cl
a
r
e w
as a c
on
su
lt
an
t
at Mc
K
in
s
ey & C
o
mp
an
y.
Pam
Cheng
Non-
executive Direc
tor
A
pp
oi
nte
d: 1 Ma
rc
h 2
0
2
0
A
N
R
S
I
Skill
s and e
xper
ience:
P
am’s exp
er
i
en
ce i
n th
e ar
ea
s of R&
D, ma
nu
fa
c
t
ur
in
g
,
sale
s and marketing, commercial operations
, supply chain
management
an
d tec
hn
ol
og
y g
ai
ne
d w
i
thi
n l
ar
g
e gl
ob
al b
us
in
es
s
e
s in s
t
r
ate
g
ic
al
ly
impor
t
ant regions for Smiths, fur
ther str
engthens the Boar
d’s
discus
sions
on em
b
ed
din
g w
or
ld cl
a
s
s op
er
atio
ns
. P
a
m ho
ld
s a B
ac
he
lo
r of S
ci
en
ce
an
d a Ma
st
er
’s deg
re
e in C
he
mi
c
al E
ng
ine
e
r
in
g fr
o
m Ste
v
en
s In
s
ti
tu
te of
T
ech
no
lo
g
y, Ne
w Je
r
s
e
y an
d an MB
A i
n Mar
ketin
g fr
o
m P
ac
e Un
i
ve
r
si
t
y
, Ne
w
Yo
r
k
,
U
S
A
.
Career experience:
Pam is E
xecutiv
e Vice-
Pre
sident, Oper
ations and
Information T
echnology at As
tr
aZenec
a plc, a mu
ltinational pharmaceu
tical
an
d bio
ph
ar
mace
u
tic
a
l co
mp
an
y. Pr
i
or t
o jo
ini
ng A
st
r
a
Zen
e
ca i
n 2
015, P
am
w
as P
r
e
si
de
nt of M
SD (
M
er
ck & C
o
., In
c
.
) in Ch
in
a. P
a
m ha
s al
s
o p
r
ev
i
ou
sl
y
hel
d v
a
r
io
us e
ng
in
ee
r
in
g an
d pr
o
je
c
t ma
na
ge
me
nt p
os
it
io
ns a
t Uni
v
er
sa
l Oil
Produc
ts
, Union
Car
bide Corp
oration and GAF Chemical
s.
Dame Ann Dowl
ing
Non-
executive Direc
tor
App
ointed:
1
9 September 2018
A
N
R
S
I
Skill
s and e
xper
ience:
Dame Ann’
s contribution to engineering res
earch
is in
ter
n
at
ion
al
ly r
e
co
gn
is
e
d, a
nd h
er k
n
ow
l
e
dg
e an
d ba
ckg
r
ou
nd of
fer
a differ
ent perspec
ti
ve to Board discussion
s, par
tic
ular
ly as they relate
to en
gin
e
er
i
ng
, in
no
v
at
io
n an
d su
st
a
ina
bi
li
t
y. Dame A
nn ha
s a de
gr
e
e in
Mathematics and a PhD in
Engineer
ing.
Career experience:
Da
me A
n
n ha
s ha
d a di
s
ti
ng
uis
he
d a
ca
d
emi
c c
ar
e
er
an
d is c
ur
r
en
tly a D
e
pu
t
y V
ice Ch
an
ce
ll
or a
nd a
n Em
er
i
t
us P
r
ofe
s
s
o
r of
Me
ch
ani
c
al E
n
gin
ee
r
in
g at t
he U
ni
v
er
s
it
y of C
amb
r
i
dg
e, w
h
er
e sh
e s
er
v
ed a
s
He
ad o
f En
gi
ne
er
i
ng f
or f
i
v
e ye
ar
s until 2
014. Sh
e se
r
ve
d a
s the P
r
e
si
de
nt an
d
Cha
ir
m
an o
f T
r
us
te
e
s of th
e Ro
y
al A
c
ad
em
y of E
n
gin
ee
r
in
g f
r
om 2
014 to 2
019
an
d as a N
on
-
exe
cu
t
i
ve D
ir
e
c
tor o
f BP pl
c f
r
om 2
012 unti
l Ma
y 2
0
21, wh
er
e
she w
as a me
mb
er of t
he S
afet
y and S
us
t
ain
ab
il
i
t
y C
om
mi
t
te
e.
Ta
n
y
a
F
r
a
t
t
o
Non-
executive Direc
tor
A
pp
oi
nte
d: 1 Ju
ly 2
012. Tany
a w
il
l r
eti
r
e fr
o
m th
e Bo
a
r
d
at th
e co
nc
lu
si
on of t
he 2
0
2
2 A
G
M
A
N
R
I
Skill
s and e
xper
ience:
In ad
di
ti
on t
o he
r ex
pe
r
ie
nc
e in m
anu
f
ac
t
ur
ing an
d
op
er
atio
ns
, Tany
a br
i
ng
s in
si
ght i
nto pr
o
du
c
t in
no
v
at
io
n, s
a
le
s a
nd m
ar
ke
tin
g
ac
ro
s
s a r
a
ng
e of s
e
c
tor
s and an e
x
te
ns
i
ve k
n
ow
led
ge of o
p
er
atin
g in th
e U
S,
to Bo
a
rd d
is
c
us
s
io
ns
. A
s one of t
he l
on
ge
s
t s
er
v
in
g m
emb
e
r
s of t
he B
oa
r
d,
she h
a
s a de
ep k
no
w
l
ed
g
e of th
e Gr
o
up
. Sh
e is a q
ual
i
f
ie
d el
ec
t
r
ic
a
l en
gi
ne
er
an
d ha
s a B
S
c in E
le
c
tr
i
c
al E
ng
in
ee
r
in
g.
Career experience:
T
any
a h
a
s ha
d a su
cce
s
s
f
ul c
a
re
e
r r
un
nin
g
busines
ses over 2
0 years w
ith Gener
al Electr
ic Cor
por
ation, a multinational
con
gl
om
er
ate. P
r
i
or to j
oi
nin
g th
e Sm
it
hs B
o
ar
d
, sh
e w
a
s th
e CEO of D
ia
mo
nd
Inn
o
v
ati
on
s In
c, a m
an
uf
a
c
tu
r
er of i
nd
us
tr
ial di
am
on
ds
. Tany
a al
s
o s
er
v
ed a
s
a no
n-
e
xec
u
ti
v
e dir
e
c
to
r on t
he B
o
ar
d of M
on
di p
lc f
r
om 2
0
1
7 to Ma
y 2
0
2
2
.
Other significant appointment
s:
Non-E
xecutiv
e Director of
Ad
vanced
Dr
aina
ge S
y
s
tem
s
, In
c. a
nd A
shte
ad G
r
ou
p pl
c
.
A
Au
d
it & R
i
sk C
o
mm
it
tee
R
Remuneration &
People Committee
F
Finance Commit
tee
Commit
tee Chair
N
Nomination &
Governance Committee
S
Science, Sustainabilit
y
& Excellence Committee
I
In
de
p
en
d
ent D
i
r
ec
t
or o
r in t
h
e Ch
ai
r
m
an’s
case independent on appointmen
t
Key
BOAR
D BIOGR
A
PHIE
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
58
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
K
ar
in Ho
eing
Non-
executive Direc
tor
A
pp
oi
nte
d: 2 A
pr
il 2
0
2
0
N
R
S
I
Skill
s and e
xper
ience:
K
ar
i
n br
i
ng
s cu
r
r
ent e
xe
cu
ti
v
e e
xp
er
i
en
ce o
f oil & g
as
,
def
en
ce, s
e
cu
r
it
y, and a
er
os
p
ac
e to th
e Bo
a
rd g
ai
ne
d f
r
om a r
a
ng
e of r
o
le
s
at l
ar
g
e mu
lti
na
ti
on
al gr
o
up
s. K
ar
in h
as al
so p
r
ov
i
de
d v
al
ua
bl
e as
s
is
t
an
ce
an
d ad
v
i
ce in e
xe
cu
ti
v
e an
d n
on
-
exe
cu
ti
ve su
cce
s
s
ion p
l
a
nni
ng a
nd E
S
G a
nd
sustainabilit
y matters. Kar
in holds a
Diploma Geophysics (MSc Geophy
sics)
fr
o
m th
e Uni
v
e
r
si
t
y of Ham
bur
g
, G
er
m
an
y.
Career experience:
K
ar
i
n is G
r
oup E
SG, C
ult
ur
e a
nd B
us
ine
s
s Tran
s
fo
r
ma
ti
on
Dir
e
c
to
r at B
A
E S
y
s
tem
s pl
c. P
r
i
or t
o jo
ini
ng B
A
E s
he l
e
d on
e of th
e ma
jo
r
international business div
isions at Schlumber
ger
,
a multinational oil
ser
vices
company. Karin spent 20 year
s at Schlumberger
, where she held a
number of
se
ni
or HR
, m
ar
ke
tin
g
, tec
hn
ol
og
y and l
in
e ma
na
ge
me
nt le
ad
er
ship p
os
i
tio
n
s
ac
ro
s
s Eu
ro
p
e, th
e Mi
dd
le E
a
s
t an
d A
s
ia
.
Richar
d How
es
Non-
executive Direc
tor
A
pp
oi
nte
d: 1 S
ept
emb
e
r 2
0
2
2
. Ri
ch
ar
d w
il
l s
t
an
d fo
r app
o
int
me
nt at th
e
2
0
2
2 A
GM
A
N
R
I
Skill
s and e
xper
ience:
Ric
h
ar
d
’s bac
kgr
ou
nd i
n se
ni
or f
i
nan
ci
al p
os
it
io
ns a
t
l
ar
g
e li
s
ted c
om
p
ani
e
s in a v
a
r
iet
y of s
ec
to
r
s b
r
in
gs v
a
lu
ab
le i
ns
igh
t to th
e
Bo
ar
d
’s dis
cu
s
si
on
s
. Ri
ch
ar
d h
ol
ds a B
S
c i
n Ge
o
gr
a
ph
y f
r
om L
ou
gh
bo
r
ou
gh
Uni
v
er
sit
y and i
s a Fe
ll
o
w of th
e IC
A
E
W.
Career experience:
Ric
h
ar
d is C
hi
ef F
in
an
ci
al O
f
f
i
ce
r of Bu
nz
l pl
c, t
he
specialis
t international distributio
n and ser
v
ices Group. Richard qualif
ied as a
Cha
r
ted A
cc
oun
ta
nt w
i
th E
r
n
st & Youn
g b
efo
r
e mo
v
in
g to th
e in
ve
s
t
me
nt b
ank
Dr
e
s
dne
r K
lei
nw
o
r
t Ben
s
on
. P
r
io
r to jo
in
in
g Bun
zl i
n 2
019
, Rich
ar
d h
el
d CF
O
positions at
v
arious multinational
business
es including
Inchcape plc, Coats
Gr
ou
p pl
c an
d B
ak
ka
v
or p
lc
.
Bill Seeger
Senior Independent Direc
tor
A
pp
oi
nte
d: 12 May 2
014
A
N
R
F
I
Skill
s and e
xper
ience:
Bil
l ha
s ha
d a l
on
g an
d su
cce
s
s
f
ul c
a
re
er i
n f
in
anc
e
in th
e en
gi
ne
er
i
ng s
e
c
tor, gaini
ng a
n in
-
de
pth k
n
ow
l
ed
g
e of gl
ob
al m
ar
kets
.
Bill
’
s extensi
ve exper
ience in global engineering busines
ses suppor
ts the
Bo
ar
d
’s ro
bu
s
t de
ci
si
on
-m
ak
in
g. B
il
l ha
s a B
A in e
co
no
mi
c
s an
d an M
B
A
.
Career experience:
Bil
l w
a
s ap
po
inte
d Ch
ai
r of th
e Rem
un
er
atio
n & Pe
op
le
Co
mm
it
t
ee o
n 1 Ju
ly 2
018, a
nd a
s S
en
io
r In
de
pe
nd
ent D
ir
e
c
to
r at th
e 2
018
AG
M. B
il
l ha
s be
en C
ha
ir of t
he F
i
na
nc
e Co
mm
it
t
ee s
inc
e it w
as for
mal
is
e
d in
No
ve
mb
er 2
0
2
1. Wi
th ef
fec
t f
r
o
m 1 Feb
r
u
ar
y 2
0
2
2 Bi
ll w
as ap
po
inte
d to t
he
Bo
ar
d o
f IC
U Me
di
c
al
, In
c
. in a
cco
r
da
nc
e w
it
h th
e ter
m
s of t
he s
ha
r
eh
ol
de
r
s
agr
e
em
en
t ente
r
ed i
nto w
i
th th
e s
al
e of S
mi
th
s Me
di
c
al
. H
e is a
l
s
o a me
mb
er
of IC
U
’s Aud
it a
nd C
om
pl
ia
nc
e C
omm
it
tee. B
il
l w
as G
r
ou
p F
in
an
ce D
ir
ec
t
or
at GK
N p
lc
, a gl
ob
a
l en
gin
e
er
i
ng gr
o
up, u
nti
l hi
s re
tir
e
me
nt in 2
0
14. A
t GK
N
he al
so h
el
d th
e ro
le
s o
f CEO o
f the P
r
o
pu
l
si
on S
y
s
tem
s Di
vis
io
n an
d
CFO o
f th
e A
er
os
p
ac
e Di
v
i
si
on
. P
r
io
r to th
at
, Bil
l s
pe
nt 3
0 y
ea
r
s at T
R
W, a
US
-
b
as
e
d au
tom
oti
ve an
d ae
ro
sp
a
ce gr
o
up, w
h
er
e h
e he
ld v
a
r
i
ou
s se
ni
or
finance positions.
Other significant appointment
s:
S
eni
or I
nd
ep
en
de
nt D
ir
ec
t
or at S
p
ec
t
r
is p
lc
an
d Le
c
tu
r
er at U
CL
A A
n
d
er
s
o
n S
ch
oo
l of Ma
na
g
eme
nt
.
Mar
k S
eligma
n
Non-
executive Direc
tor
A
pp
oi
nte
d: 16 May 2
016
A
N
R
F
I
Skill
s and e
xper
ience:
Mark
’s extensive exper
ience in corpor
ate finance
an
d ca
pi
t
al m
ar
ke
t
s sup
p
or
t
s Bo
ar
d d
is
c
us
s
io
n of th
e Gr
o
up’s por
t
fo
li
o
man
a
ge
me
nt an
d s
tr
a
teg
y. H
e pr
o
v
id
ed s
ig
ni
fi
c
ant c
ou
ns
e
l dur
ing th
e s
al
e
of Sm
it
hs M
e
dic
a
l th
r
ou
gh hi
s su
pp
or
t of t
he T
r
a
ns
a
c
ti
on a
nd n
o
w F
in
anc
e
Co
mm
it
t
ee
. Ma
r
k al
so br
i
ng
s n
on
-
exe
cu
ti
ve ex
pe
r
ie
nc
e to th
e B
oa
r
d, h
av
i
ng
se
r
ve
d as s
e
nio
r in
de
pe
n
den
t dir
e
c
to
r an
d au
di
t com
mi
t
te
e ch
ai
r
ma
n at
se
v
er
al F
TS
E100 c
om
pa
ni
es
. M
ar
k i
s a Ch
ar
ter
ed A
c
co
unt
an
t and h
a
s an M
A
in ph
il
os
op
h
y, pol
i
tic
s and e
co
no
mic
s.
Career experience:
Mar
k is a for
mer s
en
io
r inv
e
s
tm
ent b
a
nker a
nd d
ur
i
ng h
is
exe
cu
ti
v
e c
ar
e
er h
e h
el
d v
ar
i
ou
s r
ol
es a
t Cr
e
di
t Su
is
s
e, i
nc
lu
din
g Ch
air
man
of UK I
nv
e
st
me
nt B
an
ki
ng
. Ma
r
k s
er
v
ed a
s a no
n-
e
xe
cu
ti
v
e di
r
ec
to
r on t
he
Bo
ar
d o
f K
in
gf
i
sh
er p
lc f
r
om 2
012 to Ja
nu
ar
y 2
0
21.
Other significant appointment
s:
Senior Independent Direc
tor at
NatWes
t
Gr
ou
p pl
c an
d A
lte
r
na
te me
mb
er at P
a
ne
l on Takeov
e
r
s an
d Me
r
ge
r
s fo
r th
e
A
s
s
o
cia
ti
on f
or F
in
an
ci
al M
ar
ket
s i
n Eur
o
p
e.
Noel T
at
a
Non-
executive Direc
tor
A
pp
oi
nte
d: 1 Ja
nu
ar
y 2
017
A
N
R
I
Skill
s and e
xper
ience:
No
el h
as h
ad a s
uc
ce
s
s
fu
l c
ar
e
er i
n glo
b
al b
us
ine
s
s
.
He h
as e
x
te
ns
i
ve e
xp
e
r
ie
nc
e of th
e hi
gh
-
gr
o
w
t
h e
con
o
mie
s w
h
ic
h ar
e ke
y
mar
kets f
or o
ur gr
o
w
th s
tr
ateg
y an
d h
as b
ee
n in
v
al
ua
bl
e in de
v
el
op
in
g
key s
t
r
ate
gi
c r
el
at
io
ns
hi
ps i
n A
s
ia s
inc
e jo
in
ing t
he B
o
ar
d
. No
el h
as a B
A
in Economics.
Career experience:
No
el w
a
s th
e Ma
na
gin
g D
ir
ec
tor of T
at
a Inte
r
n
ati
on
al
L
imi
te
d (
TIL
), a glo
b
al t
r
a
din
g an
d di
s
tr
i
bu
ti
on c
om
pa
ny a
nd a t
r
a
din
g
ar
m of t
he Tata Gr
o
up, a p
r
i
v
at
ely
ow
n
e
d mul
ti
nat
io
na
l ho
ld
in
g co
mp
an
y.
Und
er t
he t
er
m
s of t
he T
at
a Gr
o
up g
ov
e
r
na
nc
e gui
de
l
ine
s
, h
e r
eti
r
ed f
r
om t
he
po
si
ti
on of M
an
ag
in
g Di
r
ec
to
r on 12 No
ve
mb
er 2
0
2
1. He wa
s th
er
e
af
ter r
e-
app
o
inte
d as a D
ir
e
c
to
r an
d No
n-
E
xe
c
ut
i
ve C
ha
ir
m
an of T
I
L w
it
h ef
f
ec
t fr
om
1
5 November 20
21
.
Other significant appointment
s:
E
ach o
f th
e fo
ll
o
w
in
g com
p
ani
e
s fo
r
ms
pa
r
t of the Tata Gr
o
up: N
on
-i
nd
ep
en
de
nt N
on
-
exe
cu
t
i
ve C
hai
r
m
an at Tata
Inv
e
s
tm
ent C
o
r
po
r
a
ti
on
, T
re
nt L
td an
d Vol
ta
s L
td
. Non
-
in
de
pe
nd
ent N
on
-
exe
cu
ti
v
e V
ice Ch
air
man at Tata Ste
el L
i
mi
ted a
nd T
ita
n C
omp
a
ny L
td
.
Mat
thew
W
hy
te
Company Secr
etar
y
A
pp
oi
nte
d: 1 Au
gu
s
t 2
0
21
Skill
s and e
xper
ience:
Mat
t
he
w i
s a Ch
ar
ter
ed C
o
mp
an
y S
e
cr
et
ar
y an
d a
Fel
l
ow o
f T
he C
har
ter
e
d G
ov
er
nanc
e In
s
ti
tu
te UK a
nd I
r
el
a
nd
. Mat
the
w jo
in
ed
Sm
it
hs i
n 2
017 hav
in
g pr
e
v
io
us
ly g
ai
ne
d go
v
er
n
an
ce an
d l
eg
al e
xp
er
ienc
e in
se
ni
or r
o
le
s in l
a
r
ge m
ult
in
ati
on
al l
i
st
ed g
r
oup
s in a v
a
r
ie
t
y o
f se
c
to
r
s
, mo
s
t
re
ce
nt
ly at S
c
hr
o
de
r
s pl
c an
d Ri
o T
int
o plc
.
A
Au
d
it & R
i
sk C
o
mm
it
tee
R
Remuneration &
People Committee
F
Finance Commit
tee
Commit
tee Chair
N
Nomination &
Governance Committee
S
Science, Sustainabilit
y
& Excellence Committee
I
In
de
p
en
d
ent D
i
r
ec
t
or o
r in t
h
e Ch
ai
r
m
an’s
case independent on appointmen
t
Key
READ MORE
The biographies of the Executive Committee
members can be found on our website.
Ot
her Di
rec
tors w
ho s
er
ved d
ur
in
g F
Y20
2
2
Jo
hn S
hip
s
ey s
te
pp
e
d do
w
n f
r
om th
e B
oa
r
d an
d as C
hi
ef F
in
an
ci
al O
f
f
i
ce
r
in A
p
r
il 2
0
2
2
. H
is b
io
gr
aph
y ca
n b
e fou
nd i
n ou
r F
Y
2
0
21 A
n
nua
l Rep
o
r
t.
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
59
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Dur
in
g F
Y20
2
2, t
he Dir
ec
to
r
s conti
nued t
o pro
vi
de
over
si
ght
, ch
all
eng
e and g
uid
ance on a b
ro
ad r
a
nge o
f
topics
. This included the development and implementation
of the Group
’
s strategic objec
tives
, culture and operational
per
for
m
ance. T
he key ar
ea
s of fo
cus f
or th
e Bo
ar
d dur
in
g
the ye
ar ar
e se
t out b
elo
w.
Pur
pos
e
–
En
sur
ed t
hat o
ur fo
cus o
n s
tr
ate
g
y an
d bus
ine
s
s de
ci
sio
ns
ali
gne
d w
it
h our P
ur
pos
e
Str
ateg
y
–
Reaf
fir
m
ed th
e Gr
ou
p st
r
ate
g
y, inclu
din
g the S
mit
hs Va
lue
En
gine a
nd fo
cu
s on ou
r thr
e
e pr
i
or
i
tie
s of Gr
o
w
th, E
xecut
ion
and People
–
Endor
se
d the refre
shed div
isional str
ategies and implementation
of the n
ew i
n-
mar
ket oper
a
tin
g mo
del fo
r Chin
a
–
Completed deep-di
ves on the implementation
of each division’
s
str
ategy pro
viding constr
uc
tiv
e feedback and guidance
–
Ensure
d stakeholder consider
ations wer
e embedded in
discussion
s and decision-making through enhanced repor
ting
fr
om e
ac
h of the d
i
v
isi
on
s
–
Appr
oved a new sustainabilit
y str
ategy
–
Ag
re
ed t
he s
al
e of Sm
ith
s Me
dic
a
l to ICU M
edi
c
al
, Inc (
IC
U
)
and t
he su
bs
equ
ent £
742m sh
ar
e bu
y
b
ack p
r
ogr
amme
–
Sup
po
r
ted the r
el
a
unc
h of the S
mi
ths E
xcell
enc
e Sy
s
tem (
S
E
S)
–
Discus
sed and consider
ed oppor
tunities for inorganic grow
th
Peopl
e, Values
and
cultur
e
–
A
pp
ro
v
ed a w
or
k
fo
rc
e eng
ag
eme
nt st
r
ate
g
y w
her
e in
di
v
id
ual N
on
-
executive Dire
ctor
s have been allocated div
isional or functional
and g
eo
gr
a
phi
c ar
ea
s of r
es
po
nsi
bil
it
y in or
de
r to ref
le
c
t th
e glo
ba
l
natu
re o
f our b
usin
e
ss a
nd inte
r
nat
ion
al co
mp
osi
tio
n of our B
o
ar
d.
Th
e S
eni
or In
dep
en
dent D
ir
ec
to
r is th
e de
si
gnate
d No
n-
exe
cu
ti
v
e
Dir
ec
to
r r
es
po
nsi
ble f
or w
or
k
for
ce e
ng
age
ment a
nd o
ve
r
s
ee
s
this acti
vit
y
–
Recei
v
e
d upd
ate
s fr
om t
he No
n-
e
xecu
ti
v
e Dir
e
c
tor
s o
n the
ir
wo
r
k
for
ce en
ga
gem
ent a
c
ti
v
it
ie
s. T
h
is in
clu
de
d Dam
e A
nn
Do
w
li
ng’s visi
t
s to th
e Smi
th
s Dete
c
tio
n Hem
el He
mps
te
ad si
te an
d
to a Se
r
v
ice T
eam o
n-
site at a l
a
r
ge c
us
tome
r
; P
am Ch
eng’s vis
it
s
to the F
le
x-
T
e
k T
utco and G
as
ti
te op
er
ation
s; Mar
k S
el
ig
man’s visi
t
to the Q
ual
i
fi
c
atio
n and T
es
t l
a
bor
ator
y at Inter
con
ne
c
t’s Dund
ee
site; an
d Bil
l S
ee
ger a
nd K
a
r
in Ho
ein
g’
s at
ten
dan
ce at co
ll
ea
gue
meetings about Ethic
s and Compliance and E
SG
–
Co
ndu
c
ted on
e
-o
n-
on
e an
d gr
oup o
nl
ine m
eet
ing
s bet
we
en
Dir
ec
to
r
s an
d emp
lo
ye
e
s dur
in
g th
e CO
V
I
D-
1
9 pa
nd
emic
.
Th
is en
sur
e
d th
at Dir
e
c
tor
s s
t
ay
ed in to
uc
h w
ith t
he Gr
o
up’
s
emp
loy
e
es g
i
ven t
hat m
any w
er
e w
or
k
in
g fr
om h
om
e
–
Recei
v
e
d a re
po
r
t fr
om th
e ne
w Chi
ef Peo
pl
e Of
fic
er on h
er
key obser
v
ations since joini
ng the Company and prior
ities for the
new People str
ategy
–
Sup
po
r
ted the E
xecu
ti
ve C
om
mi
t
tee in t
he l
au
nch o
f the n
ew
Smi
th
s Le
ad
er
sh
ip Be
ha
v
iou
r
s to gui
de h
ow w
e w
ant o
ur
pe
opl
e to ac
t in s
upp
or
t of our c
ult
ur
e
–
O
v
er
si
ght of th
e A
ss
es
sm
ent
, De
ve
lop a
nd Re
w
ar
d P
r
oje
c
t
to ali
gn key e
lem
ent
s of S
mit
hs HR p
r
oce
s
s
e
s wi
th t
he th
re
e
prior
itie
s of Grow
th, E
xecution and People
–
Recei
v
e
d re
gul
ar update
s o
n empl
oy
e
e eng
ag
eme
nt, th
e
Gr
oup’s pensi
on ar
ra
ng
eme
nt
s and h
ea
lth an
d s
afet
y
Succes
sion an
d lea
der
ship
–
Foc
us
e
d on Bo
ar
d s
ucce
s
si
on p
l
anni
ng an
d key r
ol
es w
i
th
in
the business
–
A
pp
ro
v
ed th
e app
oi
ntme
nt of a ne
w Chi
ef F
inan
cia
l O
f
f
ic
er
and Non-executi
ve Direc
tor
–
A
pp
ro
v
ed ch
an
ge
s to the E
xecu
ti
v
e Co
mmi
t
tee
, incl
udi
ng
the a
ppo
intm
ent of s
ev
en n
ew m
emb
er
s
–
Rev
ie
w
ed s
eni
or m
ana
gem
ent s
ucce
s
si
on pl
a
ns an
d th
e ta
lent
pipeline across the Group
BO
A
RD
A
C
TIV
IT
Y
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
60
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
F
inance
–
Consider
ed busines
s per
for
mance throu
gh a series of
di
v
isi
on
al de
ep
-
di
v
es at B
o
ar
d me
etin
gs
–
Rev
ie
w
ed an
d ap
pr
ov
e
d the G
ro
up’
s r
es
ult
s a
nno
unc
eme
nt
s and
the F
Y
2
0
21 A
nnual Rep
or
t
–
Sup
po
r
ted the d
e-
r
is
kin
g of th
e T
I Gr
ou
p Pen
sio
n S
che
me b
y
w
ay of a £
6
4
0m bu
lk a
nnui
t
y b
u
y
-in
. T
he B
oa
r
d con
sid
er
ed a
nd
dec
l
ine
d the r
e
que
s
t f
ro
m th
e SI Pe
ns
ion S
c
hem
e T
ru
ste
e
s to
pay enhanced member ben
efit
s
–
A
pp
ro
v
ed th
e f
inal d
i
v
ide
nd fo
r F
Y
2
0
21 an
d the F
Y
2
0
2
2
inter
im d
i
v
ide
nd
–
Co
nsi
der
e
d the f
ee
db
ack f
r
om s
t
akeh
old
er
s o
n the C
ap
it
al
Mar
ket
s e
ve
nt hel
d in No
v
emb
er 2
0
21
–
O
the
r key mat
ter
s con
sid
er
ed b
y th
e Au
di
t & Ris
k Co
mmi
t
tee
ar
e set o
ut o
n pa
ge
s 71 an
d 72
Gover
nance and r
i
sk
–
Recei
v
e
d upd
ate
s on our p
r
in
cip
al r
i
sk
s
–
Ong
oin
g ov
er
sight of ou
r inter
n
al co
ntr
ol
s in ord
er to en
su
re
an ef
f
ec
ti
v
e co
ntr
ol en
v
ir
on
ment
–
Co
ntinu
ed m
oni
tor
i
ng of r
i
sk ma
nag
em
ent an
d inter
n
al co
ntr
ol
s
by th
e A
udi
t & Ris
k Co
mmi
t
tee
, inc
lud
ing d
ee
p-
di
v
e
s fr
o
m the
di
v
isi
on
s on su
ppl
y cha
in an
d pr
od
uc
t qu
ali
t
y
–
A
pp
ro
v
ed an
d pr
o
v
ide
d o
ver
sight of th
e Ethi
c
s an
d Co
mpl
ia
nce
annual wor
k progr
amm
e
–
Ongoing consider
ation of the Group’
s
compliance wi
th the
Co
de an
d r
el
ate
d ac
ti
v
i
tie
s
–
Und
er
took a
n inter
n
al Bo
ar
d e
v
alu
ati
on to r
ev
i
ew t
he
ef
fe
c
ti
v
ene
s
s of t
he Bo
ar
d a
nd i
t
s Co
mmi
t
tee
s
, w
hic
h inc
lud
ed
dis
cu
s
sing t
he p
ro
gr
e
s
s mad
e f
ro
m the p
r
ev
i
ous y
e
ar’s
ev
aluation and
agreeing ac
tions for the
nex
t financial year
.
Se
e p
ag
es 6
4 and 6
5
–
A
pp
ro
v
ed th
e e
st
ab
li
shm
ent of th
e S
cie
nce
, Su
st
ai
nab
ili
t
y &
E
xcel
le
nce C
omm
it
te
e an
d the e
v
olu
tio
n of th
e Remun
er
a
tio
n
& Peo
ple C
om
mi
t
tee an
d th
e F
ina
nce C
omm
it
te
e
–
E
s
ta
bl
ish
ed a fo
r
w
ar
d ag
en
da fo
cu
se
d on s
tr
ateg
y and a d
ee
p
-
di
ve p
r
ogr
amme to en
su
re r
e
gul
ar r
e
v
ie
w
s of key a
re
as o
f foc
us
Pr
incipal
decisions
Hav
i
ng an ef
fec
ti
v
e an
d di
ve
r
s
e Bo
ar
d ha
s en
abl
ed hi
gh qu
al
it
y
dis
cu
s
sio
ns ah
ea
d of exe
cu
tin
g se
ve
r
al ke
y de
ci
sio
ns du
r
ing t
he y
ear
.
Th
e Bo
ar
d e
nga
ge
s w
i
th s
ta
keho
lde
r
s w
he
re r
e
le
v
ant an
d ta
kes th
eir
inter
e
st
s i
nto acco
unt w
he
n mak
in
g de
cis
ion
s
. Bel
ow a
r
e exa
mpl
es
of the p
r
in
cip
al de
ci
sio
ns t
aken d
ur
in
g the y
ea
r
. Fur
th
er ex
amp
le
s of
ho
w st
akeh
ol
de
r v
iew
s h
av
e be
en c
ons
id
er
ed in t
he b
oa
r
dr
oom c
a
n
be fo
und o
n pa
ge
s 4
1 to 4
4.
Sale of Smit
hs Medical t
o ICU
Smi
th
s Med
ic
al w
a
s so
ld to I
CU on 6 J
anu
ar
y 2
0
2
2
. Ho
we
v
er
, the
se
par
ation o
f Smi
th
s Med
ic
al h
ad b
een a ke
y fo
cus o
f the B
o
ar
d
sinc
e 2
018. Th
e Bo
ar
d h
ad d
eter
min
ed t
hat t
he s
ep
ar
at
ion o
f Smi
th
s
Med
ic
al w
oul
d en
abl
e Smi
th
s to con
centr
ate on gr
ow
i
ng a
s a lea
din
g
indu
s
tr
ia
l tech
no
lo
g
y gr
oup an
d en
abl
e Smi
th
s Me
dic
al to fo
cu
s on
re
al
is
ing i
t
s fu
ll p
otenti
al in th
e me
dic
a
l de
v
ice ma
r
ket
.
Stakeholder
s were a key consideration dur
ing the decision-making
pr
oc
es
s
. T
he B
o
ar
d ac
ti
v
el
y eng
ag
ed w
i
th al
l opti
on
s to ma
xim
is
e
v
alu
e for al
l s
ta
keho
lde
r
s an
d to pr
o
v
ide t
he C
omp
an
y w
ith a
n
enh
ance
d pl
a
t
for
m f
or f
ut
ur
e gr
ow
th
. T
his le
d to th
e Bo
ar
d ap
pr
o
v
ing
the s
al
e of Sm
ith
s Me
dic
a
l to ICU. A
n
othe
r key B
oa
r
d de
cis
ion w
a
s
the u
se of t
he p
ro
ce
ed
s onc
e the s
a
le ha
d com
ple
ted
. Th
e Bo
ar
d
so
ught s
har
eh
ol
der f
ee
db
ack o
n the b
e
st c
our
se of ac
t
ion a
nd
deter
m
ine
d th
at the p
r
oce
ed
s w
oul
d be s
pl
it b
et
w
e
en in
ve
s
tme
nt
in gr
ow
th an
d a sig
nif
ic
a
nt re
tur
n of c
a
pit
al to s
har
eh
ol
der
s thr
oug
h
a share buyback pro
gr
amme.
Mor
e inf
or
ma
tio
n ca
n be fo
un
d on th
e we
bsi
te.
Reaf
f
ir
ming th
e Gr
oup’
s
str
ategy
Pa
ul Ke
el j
oin
ed th
e Bo
ar
d in M
ay 2
0
21 a
s the G
r
oup’s Chief
E
xec
ut
i
ve O
f
fic
er
. His fir
st ob
jec
t
i
ve w
a
s to r
ev
i
ew t
he Gr
o
up’
s
st
r
ate
g
y, what w
a
s w
or
k
ing w
el
l and w
h
er
e op
po
r
tunit
ie
s ex
is
ted
.
In his f
ir
st si
x mont
hs
, P
aul v
i
si
ted m
or
e tha
n a doze
n of Smi
th
s
l
ar
ge
s
t op
er
at
io
ns ar
o
und th
e w
or
l
d. T
o se
ek fe
ed
ba
ck he m
et w
it
h
so
me of th
e Gr
ou
p’
s supp
l
ier
s a
nd c
us
tome
r
s an
d Smi
th
s l
ar
ge
s
t
inv
es
to
r
s
. Pa
ul r
ep
or
ted hi
s fi
ndin
gs b
ac
k to the B
o
ar
d an
d the n
ew
pr
io
r
it
ie
s
, bei
ng ac
ce
s
sin
g gr
ow
th, i
mpr
o
v
ing e
xec
uti
on an
d do
ing
mor
e to in
spi
re a
nd e
mpo
w
er ou
r pe
opl
e, w
er
e dis
c
us
se
d an
d
end
or
s
e
d by th
e Bo
ar
d
. T
he C
ap
it
al Ma
r
ket
s ev
ent in N
ov
emb
er 2
0
21
success
fully communicated to shareholder
s and other stakeholder
s
the G
ro
up’
s s
tr
ate
g
y, inclu
din
g our E
S
G p
r
io
r
it
ie
s and h
o
w eac
h of
the di
v
i
sio
ns w
er
e ac
cel
er
at
ing g
ro
w
th and v
a
lue c
r
eati
on
. At t
he
Bo
ar
d’s st
r
ate
g
y mee
tin
g in Ma
y 2
0
2
2, t
he B
oar
d h
ad t
he op
po
r
tunit
y
to re
v
ie
w in de
tai
l and c
hal
le
nge t
he r
ef
re
s
hed d
i
v
isi
ona
l s
tr
ate
gie
s
and t
he ne
w in
-m
ar
ket op
er
ating m
od
el for C
hina
.
Th
e Bo
ar
d a
l
s
o de
cid
ed to m
ake se
v
er
a
l go
ver
nance e
nha
nce
ment
s
to supp
or
t th
e st
r
ate
g
y. Thi
s inc
lud
ed th
e cr
e
atio
n of th
e Sc
ien
ce,
Sus
t
ain
abi
li
t
y & E
xcell
enc
e Co
mmi
t
tee to o
ve
r
s
ee t
he Gr
o
up’
s
appro
ach to science, sustainabil
it
y, and ex
cellence, including R&D,
comm
er
ci
ali
s
ati
on
, and s
us
ta
ina
bil
it
y str
ategie
s
. A
s wel
l as th
e
ev
olu
ti
on of th
e Remun
er
ation & Pe
op
le C
omm
it
te
e to sup
po
r
t the
Peo
ple p
r
io
r
it
y in the S
mi
ths V
alu
e En
gine
. In ad
di
tio
n, i
t w
as a
gr
ee
d
that t
he F
in
anc
e Co
mmi
t
tee w
ou
ld o
ve
r
se
e th
e Gr
ou
p’
s sou
rc
es a
nd
us
es of c
a
sh in
clu
din
g it
s ap
pr
o
ac
h to por
t
fo
li
o ac
ti
v
i
t
y
, ev
olv
i
ng f
r
om
the T
r
an
s
ac
ti
on C
omm
it
te
e w
hic
h fo
cus
e
d on su
pp
or
ting t
he Sm
it
hs
Med
ic
al s
al
e. F
in
all
y, to suppo
r
t accel
er
a
ted gr
o
w
th and d
eli
v
er
on Sm
ith
s si
gnif
i
ca
nt pote
ntial
, t
he B
oa
r
d app
ro
v
ed a nu
mbe
r of
cha
nge
s to th
e E
xe
cu
ti
v
e Co
mmi
t
tee
.
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
61
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
The following role specific
ations set out the
clear divi
sion
of responsibilit
y bet
ween executive and non-executive
memb
er
s of t
he Bo
ar
d, w
hic
h sup
por
t the in
tegr
i
t
y of th
e
Board’
s operations.
CHAIRMAN
–
En
sur
e
s the B
o
ar
d’s contin
ue
d ef
f
ec
ti
v
en
es
s
–
Sha
pe
s b
oar
d
ro
om c
ult
ur
e and e
nco
ur
a
ge
s in
di
v
id
ual
Direc
tor engagement
–
Le
ad
s the B
oa
r
d and s
et
s t
he Bo
ar
d a
ge
nda
, dete
r
mini
ng
the s
t
yle a
nd to
ne of di
sc
us
si
on
s at Bo
ar
d me
eti
ng
s
–
Leads the annual Boar
d ev
aluation
CHIEF EXECUTIVE OFFICER
–
De
ve
lop
s and p
r
op
os
es s
tr
ateg
y to th
e Bo
ar
d
–
Se
t
s and c
omm
unic
ate
s th
e cul
tur
e, Va
lue
s
,
and b
eh
av
io
ur
s fo
r th
e Gr
oup
–
Le
ad
s the E
xecu
ti
ve C
om
mit
tee
–
Mana
ge
s th
e da
y to day o
pe
r
at
ion
s of th
e Co
mp
any
–
Manages rel
ationships wi
th key stakeholders
CHIEF FINANCIAL OFFICER
–
Sup
po
r
ts th
e Chi
ef E
xe
cu
ti
ve O
f
fic
er in en
su
r
ing t
he
de
vel
op
ment a
nd exe
cu
tio
n of s
tr
a
teg
y
–
En
sur
e
s the a
ccu
r
ac
y and co
mpl
etene
s
s of t
he Gr
o
up’
s
fi
nan
cial s
t
atem
ent
s to en
sur
e th
ey r
ef
le
c
t a tr
u
e an
d
acc
ur
ate r
en
di
tio
n of the C
om
pa
ny
’s per
f
or
m
anc
e
–
En
sur
e
s the G
r
oup o
per
ates r
ob
us
t r
is
k
man
age
ment a
nd inte
r
nal c
ontr
o
l s
y
ste
ms to en
su
re
accur
ate and timely financial and non-financial repo
r
ting
and ultimately t
o safeguar
d stakehold
er
s’
interest
s
SENIOR INDEPENDENT DIRECTOR
–
Sup
po
r
ts th
e Cha
ir
ma
n in th
e del
i
v
er
y of th
e
Board’
s ob
jectives
–
Is av
a
il
ab
le to sh
ar
eho
ld
er
s i
f the
y w
is
h to r
ai
se
any concern
s
–
O
v
er
s
ee
s w
or
k
fo
rc
e eng
ag
eme
nt by t
he No
n-
execu
tive Directors
–
Le
ad
s the Ch
air s
ucce
s
si
on pr
o
ce
s
s
NON-EXECUTIVE DIRECTORS
–
Pro
vide constr
uc
ti
ve challenge and strategic guidance
to Bo
ar
d an
d Co
mmi
t
tee d
is
cu
ss
ion
s
–
O
v
er
s
ee m
ana
ge
ment a
nd th
e bu
sine
s
s an
d of
f
er
special
ist ad
vice
–
A
s
s
e
ss t
he ef
fec
ti
v
ene
s
s of s
y
s
tem
s of inter
nal cont
ro
l
and risk management
COMPANY SECRETARY
–
Ad
v
i
se
s th
e Bo
ar
d o
n go
ve
r
nan
ce ma
t
ter
s
–
Sup
po
r
ts th
e Cha
ir
ma
n in th
e ef
f
ic
ient an
d ef
fec
ti
v
e
fu
nc
ti
onin
g of th
e Bo
ar
d an
d it
s C
om
mit
tees
–
En
sur
e
s the B
o
ar
d r
ece
i
ve
s qu
al
it
y infor
m
atio
n
in a timely manner
There is a schedule of matters w
hich are considered
signific
ant to Smiths and have therefore been rese
r
ve
d
for d
eci
sio
ns b
y the Bo
ar
d. T
hi
s is du
e to thei
r str
ategic
,
financial
, or reputational implications or consequences
.
The f
or
m
al sc
hed
ule c
an b
e fou
nd on o
ur we
bsite
.
Th
e Chi
ef E
xe
cu
ti
ve O
f
fic
er is r
e
sp
on
sib
le for p
r
ep
ar
in
g and
re
co
mme
ndin
g th
e st
r
ate
g
y and f
or th
e da
y-to
-
da
y ma
nag
em
ent
of the C
om
pa
ny. E
xec
ut
i
ve m
ana
gem
ent im
ple
ment t
he Gr
o
up’
s
st
r
ate
g
y and p
r
ov
i
de th
e Chief E
xecu
ti
v
e O
f
f
ice
r
, and the B
oa
r
d
as a w
ho
le, w
i
th th
e info
r
mat
ion t
he
y ne
ed to m
ake de
cis
ion
s th
at
w
ill d
eter
mi
ne th
e lon
g-
ter
m su
cce
s
s of th
e Gr
oup
.
At e
ach s
ch
ed
ule
d Bo
ar
d m
eeti
ng th
e Chi
ef E
xe
cu
ti
ve O
f
fic
er
and t
he Chi
ef F
ina
nci
al O
f
f
ic
er pr
e
s
ent s
ep
ar
ate r
ep
or
t
s
,
det
ail
ing b
us
ine
s
s pe
r
for
ma
nce an
d pr
o
gr
es
s a
gai
ns
t s
tr
ate
g
y.
Th
e
se a
re s
upp
lem
ente
d by r
e
gul
ar p
er
for
m
an
ce up
date
s fr
o
m
the Ch
ief E
xecut
i
ve O
f
fice
r to the D
ir
ec
to
r
s b
et
w
e
en me
etin
gs
.
W
hen a
ppr
o
pr
ia
te, inv
i
t
atio
ns to B
oa
r
d mee
tin
gs ar
e ex
tende
d
to di
v
isi
ona
l pr
e
sid
ent
s
, he
ad
s of f
unc
ti
on
s and s
ubj
ec
t m
at
ter
exp
er
t
s
, sup
po
r
ting v
is
ibil
i
t
y of t
al
ent an
d exe
cu
ti
ve s
ucc
es
si
on
pl
an
ning
. E
x
ter
nal a
d
v
is
er
s a
re i
nv
i
ted to at
ten
d as n
ec
es
s
a
r
y.
Dir
ec
to
r at
ten
dan
ce at B
oa
r
d and C
om
mit
tee meet
ing
s in
F
Y
2
0
2
2 is s
et ou
t on p
ag
e 6
3
.
T
o ensur
e t
he co
ntinu
ed ef
fec
ti
v
en
es
s of t
he B
oa
r
d, th
e
Chai
r
man m
eet
s t
he N
on-
e
xec
uti
v
e Di
re
c
tor
s w
i
th
ou
t the
E
xec
ut
i
ve D
ir
ec
to
r
s pr
e
se
nt af
te
r ea
ch B
oar
d m
eet
ing
. He al
so
has s
ep
ar
ate meet
ing
s w
ith t
he S
en
ior I
nde
pe
nde
nt Dir
e
c
tor
and t
he Ch
air
s of t
he B
oa
r
d Co
mmi
t
tee
s on a r
e
gul
a
r ba
sis a
nd
w
ith e
ac
h of the ot
he
r Non
-
exec
ut
i
ve D
ir
ec
to
r
s at le
as
t an
nual
ly.
Th
e S
eni
or In
dep
en
dent D
ir
ec
to
r con
sul
t
s w
it
h the ot
her N
on
-
exec
ut
i
ve D
ir
ec
tor
s wi
tho
ut t
he Ch
air
m
an pr
e
se
nt at le
as
t
annu
all
y, to ass
e
s
s the p
er
for
m
anc
e of the C
hair
man.
DIV
I
SION OF RE
SPON
SIBILITIE
S
H
OW TH
E BOAR
D
O
P
E
R
AT
E
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
62
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Tim
e commi
tment
Al
l Dir
e
c
tor
s m
us
t al
lo
ca
te suf
fic
ient t
ime to th
eir w
or
k in ord
er to di
sc
har
g
e th
eir r
e
spo
ns
ibil
it
ie
s ef
f
ec
ti
v
el
y. An ex
p
ec
te
d tim
e
comm
it
ment of 2
5 da
y
s pe
r ann
um is s
et ou
t in th
e Non
-
exe
cu
ti
ve D
ir
ec
to
r let
te
r of app
oi
ntme
nt. H
ow
e
ver
, Co
mmi
t
tee Ch
air
s, th
e
Se
nio
r Ind
ep
end
ent Di
re
c
tor a
nd th
e Cha
ir
ma
n com
mit m
or
e tim
e as r
e
quir
e
d. In t
he n
or
ma
l cou
r
s
e of bus
ine
s
s
, Dir
e
c
tor
s a
re
exp
e
c
ted to f
ami
li
ar
is
e th
em
se
lve
s w
i
th bu
sin
es
s p
r
io
r
it
ie
s and c
hal
len
ge
s
, pr
ep
ar
e fo
r and a
t
tend B
o
ar
d an
d Co
mmi
t
tee m
eet
ing
s
,
at
ten
d the A
GM
, eng
ag
e wi
th s
t
akeh
old
er
s a
nd p
ar
tic
ipa
te in the B
o
ar
d ev
a
luat
ion p
r
oc
es
s
. E
xe
cu
ti
v
e Dir
e
c
tor
s ar
e n
ot pe
r
mi
t
ted to
take o
n the c
hair
mans
hip or m
or
e th
an on
e no
n-
exe
cu
ti
v
e dir
ec
to
r
shi
p in a F
T
SE100 co
mp
any, or an
y othe
r sig
nif
ic
a
nt app
oint
ment
.
A
ny ap
po
intm
ent to oth
er dir
e
c
tor
s
hip
s ar
e re
v
ie
w
ed in a
d
v
an
ce b
y the B
oa
r
d for c
onf
li
c
t
s and t
ime c
omm
itm
ent co
ns
ide
r
ati
on
s.
In F
Y
2
0
2
2 the B
o
ar
d co
ncl
ude
d th
at the C
hair
man and t
he N
on-
e
xec
uti
v
e Di
re
c
tor
s d
ev
ote
d suf
fi
cient t
ime to f
ul
f
il th
eir co
mmi
tme
nt
s
to Smi
th
s. P
ar
tic
ul
ar c
on
sid
er
a
tio
n w
as gi
v
en to N
oel T
at
a’
s other c
omm
itm
ent
s a
s he h
old
s a num
ber o
f Bo
ar
d le
ve
l po
si
tio
ns ou
t
si
de
the G
ro
up al
l of w
hi
ch ar
e at T
ata G
ro
up co
mp
ani
es a
s sh
ow
n in h
is bi
og
r
ap
hy on p
a
ge 59
. T
he B
oar
d r
e
af
f
ir
med th
at No
el
’s othe
r
comm
it
ment
s d
o not p
re
v
ent him f
r
om c
ommi
t
ti
ng s
uf
f
i
cie
nt time to h
is w
or
k a
s a Dir
e
c
tor
, as ev
i
den
ced b
y hi
s at
ten
dan
ce an
d ef
fe
c
ti
v
e
par
ti
cip
ati
on at al
l Bo
ar
d an
d C
ommi
t
te
e me
etin
gs an
d ad h
oc B
o
ar
d up
date c
al
l
s
. A
s a c
ur
r
ent e
xec
uti
v
e w
i
th cont
a
c
t
s in hig
her
-
gr
o
w
th
count
r
ie
s w
hi
ch ar
e a s
tr
a
tegi
c foc
us fo
r Smi
th
s
, he br
ings v
al
uab
le an
d dis
ti
nc
t ex
pe
r
ie
nce to o
ur Bo
ar
d di
sc
us
si
on
s.
Adv
ice and ins
ur
ance
Our D
ir
ec
to
r
s ar
e ab
le to se
ek i
nde
pe
nde
nt pr
ofe
s
si
ona
l ad
v
ic
e at the e
xp
en
se o
f Smi
th
s to enab
le t
hem to f
ul
fi
l the
ir ob
li
gati
on
s as
mem
ber
s of the Bo
ar
d
. In ad
di
tio
n, th
e Dir
e
c
tor
s a
nd O
f
fice
r
s of S
mit
hs an
d it
s s
ubs
idi
ar
ie
s ha
ve t
he b
ene
fi
t of a Di
re
c
tor
s’ an
d Of
fi
cer
s’
li
abil
i
t
y in
sur
ance p
ol
ic
y
. Dur
ing F
Y
2
0
2
2, a
nd at t
he date o
f this r
e
por
t
, qual
i
f
yin
g thir
d
-p
ar
t
y i
nd
emni
t
y pro
v
isi
on
s (a
s def
in
ed b
y s
ec
ti
on
2
3
4 o
f the A
c
t
) h
av
e re
mai
ne
d in for
ce f
or th
e Dir
e
c
tor
s of t
he C
omp
an
y and c
er
tai
n othe
r emp
lo
ye
e
s in r
es
pe
c
t of th
eir dir
e
c
tor
s
hip
s of
so
me su
bsi
diar
y c
omp
ani
es i
n re
l
ati
on to cer
t
ain lo
s
se
s an
d l
iab
ili
ti
es w
hi
ch th
ey m
ay i
ncu
r (or m
ay h
av
e inc
ur
r
ed
) to thi
r
d pa
r
ties i
n the
cour
se of th
eir p
rof
es
s
ion
al du
tie
s fo
r the C
om
pa
ny, or a sub
sid
iar
y.
Direc
tor at
tendance
Board
Nomination &
Governance
Committee
Au
d
it & R
i
sk
Committee
Remuneration
& People
Committee
Science,
Sustainability
& Excellence
Committee
Finance
Committee
Sir George Buckley
10
/
10
5/5
–
4
/4
3/3
7/
7
Pa
ul K
e
el
10
/
10
–
–
–
–
–
John Shipsey
1
7/
8
–
–
–
–
–
Clar
e Scher
rer
1
2/2
–
–
–
–
–
Pa
m Ch
en
g
2
9/10
4/5
3
/4
3
/4
3/3
–
Da
me A
n
n Do
w
l
in
g
10
/
10
5/5
4
/4
4
/4
3/3
–
T
any
a Fr
at
to
10
/10
5/5
4
/4
4
/4
-
–
Kar
in Hoeing
10
/10
5/5
–
4
/4
3/3
–
Bill
Seeger
10
/10
5/5
4
/4
4
/4
–
7/
7
Mark S
eligman
10
/
10
5/5
4
/4
4
/4
–
7/
7
N
o
e
l
Ta
t
a
10
/
10
5/5
4
/4
4
/4
–
–
1
O
n 2
9 A
p
r
i
l 2
0
2
2 Cl
a
r
e S
c
he
r
r
er w
as ap
p
oi
nt
ed t
o th
e B
o
ar
d a
nd J
o
hn S
h
ip
s
ey s
t
oo
d d
o
w
n as a D
i
re
c
t
or. Joh
n S
hi
p
se
y d
id n
o
t at
te
n
d th
e m
ee
ti
n
g w
he
r
e hi
s o
ng
o
in
g a
pp
o
int
m
en
t
was discussed.
2
P
a
m Ch
e
ng w
a
s u
na
bl
e to a
t
te
n
d th
e M
ar
c
h Bo
a
r
d an
d C
om
m
it
t
e
e me
et
i
ng
s d
ue t
o pe
r
s
o
na
l ci
r
cu
m
s
ta
n
ce
s
. P
a
m Ch
en
g p
r
ov
i
d
ed h
e
r co
mm
e
nt
s a
nd i
n
pu
t o
n th
e m
at
te
r
s u
n
de
r
co
ns
i
de
r
a
ti
o
n to t
he C
ha
ir
s of th
e r
el
e
v
an
t fo
r
u
ms p
r
i
or t
o th
e m
ee
t
in
gs b
e
in
g h
el
d
.
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
63
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Each year an evaluation of the Board and its Commit
tees
is con
duc
te
d to mo
nitor t
heir e
f
fe
c
ti
ven
es
s an
d to hel
p
identif
y any improvement oppor
tunities. It is ex
ternally
facilit
ated ever
y three years
.
The annual evaluation of the
per
formance of the
Non-executi
ve
Dir
ec
to
r
s an
d th
e Chief E
xecu
ti
ve O
f
fic
er is l
ed b
y th
e Chai
r
man
.
The ev
aluation of
the Non-executi
ve Direc
tors includes indiv
idual
mee
tin
gs w
it
h the C
hair
man. F
ee
db
ack i
s gi
ve
n to the C
hief
E
xec
ut
i
ve O
f
fic
er by t
he Ch
air
m
an af
ter eac
h Bo
ar
d me
eti
ng an
d
on an a
d ho
c ba
sis t
hr
ou
gho
ut t
he y
ear
. Th
e S
eni
or In
dep
en
dent
Dir
ec
to
r an
d the Ch
ief E
xecut
i
ve O
f
fice
r le
ad th
e ev
a
luat
ion
s fo
r
the Ch
air
m
an an
d th
e Chief F
i
nan
cial O
f
fic
er r
e
spe
c
ti
v
ely.
Fol
lo
w
in
g the e
x
ter
n
al
ly f
aci
li
ta
ted e
v
alu
atio
n in F
Y
2
0
21, the
F
Y
2
0
2
2 ev
a
luat
ion w
a
s c
ar
r
i
ed o
ut inte
r
nal
ly. Ind
epe
nd
ent Au
di
t
Ltd
, w
ho ha
ve s
upp
or
ted t
he e
v
alu
atio
n pr
oc
e
ss s
inc
e F
Y
2
01
9
,
but h
av
e no ot
her c
onn
ec
t
ion to t
he C
omp
an
y, ass
is
ted w
i
th th
e
inter
p
ret
at
ion of t
he r
e
sul
t
s of a se
lf-a
ss
e
s
sme
nt que
s
ti
onn
air
e
is
su
ed to th
e Bo
ar
d
. T
he ac
t
ion
s fo
llo
w
in
g the F
Y
20
2
2 e
v
alu
atio
n
hav
e b
een g
ro
up
ed in f
our th
em
es: s
tr
ategic d
ec
isi
on ma
ki
ng;
succes
sion plannin
g; Board communication; and stakeholder
eng
ag
eme
nt and a
re s
et o
ut b
elo
w. O
v
er
a
ll
, th
e Bo
ar
d a
gr
ee
d th
at
sign
if
ic
ant p
r
ogr
e
s
s ha
d be
en ma
de s
ince t
he e
x
ter
n
al e
v
alua
tio
n.
It is t
he p
re
s
ent inte
ntio
n that t
he F
Y
2
0
2
3 e
v
al
uati
on w
il
l be
inter
n
al
ly f
a
cil
i
ta
ted
.
Bo
ar
d e
v
aluatio
n f
inding
s an
d ac
tions
ST
R
ATEGIC DE
CISION M
A
K
ING
FY2021 external
evaluation findings
Action taken in FY2022
FY2022 evaluation findings
and actions for FY2023
–
Se
ek to r
e
ach a c
le
ar
er
consensus on the Group-wide
str
ategic objecti
ve
s and how
the C
om
pan
y w
il
l ach
ie
ve th
em
–
Ensure the Remuneration
Co
mmi
t
tee h
as a b
al
an
ce
d
foc
us on b
oth f
in
anc
ial a
nd n
on-
financial considerations
–
Fol
lo
w
in
g the ap
po
intm
ent of P
au
l Ke
el th
e cor
p
or
ate
st
r
ate
g
y and c
omm
unic
at
ion
s pl
a
n for th
e Gr
ou
p
pos
t t
he s
al
e of Smi
th
s Me
dic
al w
er
e r
e
-e
v
al
uated
by th
e Bo
ar
d a
nd r
eaf
fir
med. T
h
e s
tr
ate
g
y an
d
acco
mp
any
i
ng K
P
Is a
re d
e
sc
r
ib
ed on p
a
ge
s 10 and 21
to
2
3 respectively
–
Th
e C
omp
an
y hel
d a C
api
ta
l Mar
ket
s e
ve
nt in
November 2
021
–
Enh
anc
ed 5 y
ea
r st
r
ate
gic p
l
anni
ng di
sc
us
si
on
s we
re
hel
d w
ith G
r
oup a
nd di
v
i
sio
nal l
ea
der
ship, w
ith a f
oc
us
on de
li
v
er
i
ng th
e st
r
ate
gic o
bje
c
ti
v
es i
n li
ne w
it
h the
Smiths Value Engine
–
Non
-f
ina
nci
al inc
enti
v
e me
as
ur
es f
or ma
nag
em
ent
ar
e no
w pa
r
t of E
xec
ut
iv
e Di
re
c
tor a
nd s
eni
or
management incentive arr
an
gements
–
Greatly enhanced s
tr
ategic discus
sions
wer
e h
eld d
ur
in
g the y
e
ar r
es
ult
ing
in cle
ar
er a
li
gnm
ent on t
he Gr
o
up’
s
str
ategic prior
itie
s. Going for
war
d, the
ar
ea
s of fo
cus w
ou
ld b
e gr
eate
r v
isib
il
it
y of
macro conditions, ex
ternal mar
kets and
the im
pa
c
t or o
ppo
r
tuni
tie
s ar
i
sin
g fr
o
m
tech
nol
og
y. T
he ap
po
intm
ent of a Chi
ef
Sus
t
ain
abi
li
t
y O
f
fic
er an
d the d
ev
el
opm
ent
and e
mbe
dd
ing of a s
us
t
aina
bil
it
y st
r
ate
g
y
were par
ticular impro
vements
–
Wh
en for
mul
atin
g it
s a
gen
da
s, t
he
Bo
ar
d w
il
l enc
our
age in
cr
ea
se
d tim
e for
str
ategic deep-
div
es to underscor
e the
Bo
ar
d fo
cu
s on or
g
anic g
ro
w
th
E
V
ALUA
TION, COMPOSI
TION AND SUCCE
SSION
BO
A
RD
E
V
A
L
U
AT
I
O
N
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
64
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
SUC
CE
S
S
ION PL
A
NNING
FY2021 external
evaluation findings
Action taken in FY2022
FY2022 evaluation findings
and actions for FY2023
–
Hold regul
ar discussions
between the
Non-execut
ive
Dir
ec
to
r
s an
d Chi
ef E
xe
cut
i
ve
Of
fic
er on h
is o
w
n to dis
cu
s
s
senior management succession
and d
ev
elo
pm
ent
–
Co
ntinu
e the B
o
ar
d’s
engagement acti
vi
ties wi
th key
tal
ent ac
r
os
s th
e Gr
ou
p
–
Prep
are for the tran
sition
of the C
hair
man and S
e
nio
r
Ind
epe
nd
ent Dir
e
c
tor r
ol
es i
n
the n
ex
t f
ew y
ea
r
s
–
E
xecutive and
non-executive succession planning
was
a key fo
cu
s dur
in
g th
e ye
ar w
it
h the B
o
ar
d ap
pr
ov
i
ng a
numb
er of E
xecu
ti
ve m
an
age
ment c
han
ge
s
–
The C
hief E
xecu
ti
ve O
f
fic
er up
date
d the B
o
ar
d on en
han
ce
d
talent and suc
ces
sion planning for senior leadership roles
–
Chair succession planning commenced led by the
Senior
Independent Direc
tor
–
Th
e Bo
ar
d c
onti
nue
d it
s inte
r
a
c
tio
n w
ith h
igh
-p
otenti
al
emp
loy
e
es to i
mpr
o
ve t
heir u
nde
r
s
ta
ndi
ng of t
he inter
nal
‘b
enc
h st
re
ng
th
’ w
ith v
i
r
tual an
d in p
er
s
on o
ne
-to
-o
ne
tal
ent sp
otl
ig
ht
s fr
e
que
ntly t
ak
ing p
l
ac
e
–
Face
-to
-f
ace e
xp
os
ur
e at Bo
ar
d an
d C
ommi
t
te
e me
etin
gs
for hi
gh-
po
tentia
l ta
lent w
i
thin t
he G
ro
up w
a
s re
intr
o
duce
d
once tra
vel res
tr
iction
s were lif
ted
–
The Boar
d visited Flex-
T
ek
’
s oper
ation in
Por
tland,
T
enne
ss
e
e and m
et w
it
h mem
be
r
s of th
e F
lex-
T
ek
leader
ship team
–
Boar
d succession planning for non-
exec
ut
i
ve p
osi
ti
ons w
as ident
if
ie
d to be
a key fo
cu
s for co
ns
ide
r
ati
on du
r
in
g
the y
ea
r
–
Chan
ge
s to th
e E
xe
cu
ti
ve m
ana
ge
ment
team w
er
e w
ell m
an
age
d an
d
succ
es
s
ion p
l
ann
ing o
ve
r
si
ght ha
d
been enhanced signif
icantly
–
Fur
ther f
oc
us w
oul
d be a
r
r
an
ge
d on
Executive Comm
ittee develo
pment
and succes
sion planning
, including
prov
iding oppor
tunitie
s for the
Non-
exec
ut
i
ve D
ir
ec
tor
s to meet in
di
v
id
ual
ly
and in s
mal
l gr
ou
ps w
it
h a cr
os
s
-
sec
tion of employees
BOA
RD COMMUNICA
TION
FY2021 external
evaluation findings
Action taken in FY2022
FY2022 evaluation findings
and actions for FY2023
–
Mor
e f
r
equ
ent up
date
s fo
r
the B
oa
r
d as th
e Sm
ith
s
Medical sep
ar
ation tran
sac
tion
progressed were requested
–
Co
nsi
der t
he s
ch
edu
lin
g of
Co
mmi
t
tee m
eet
ing
s and
holding hybrid meetings
–
Co
ntinu
e to imp
ro
v
e the
time
li
ne
s
s of Bo
ar
d in
for
m
atio
n
–
Str
u
c
tur
e Ch
ief E
xe
cu
ti
v
e
Of
f
icer
and Chief Financial Of
f
icer
re
po
r
ts to ti
e in mo
re c
lo
se
ly
w
ith p
r
ogr
e
s
s on s
tr
ategic
pri
ori
ties of the business
–
Regul
ar update
s o
n the S
mit
hs M
edi
c
al s
ale w
er
e pr
o
v
id
ed
thr
ou
gh th
e for
m
ati
on of th
e T
r
ans
a
c
tio
n Co
mmi
t
tee w
h
ich
met ei
ght tim
e
s dur
in
g F
Y
2
0
2
2 pr
i
or to i
t
s for
m
al
is
at
ion a
s
the F
in
anc
e Co
mmi
t
tee (
w
h
ich m
et a fu
r
ther s
ev
en t
ime
s
)
–
Th
e Bo
ar
d c
onti
nue
d to ide
nti
f
y oppo
r
tunit
ie
s to imp
r
ov
e
comm
uni
cat
io
n bet
wee
n it
s
el
f and G
r
oup e
xec
uti
v
e
s.
Th
e ne
w w
a
ys o
f wo
r
ki
ng w
hi
ch w
er
e ad
opte
d dur
in
g th
e
pan
de
mic w
er
e r
et
aine
d w
it
h one B
o
ar
d me
etin
g an
d a
number of Commit
tee meetings held remotely or par
tial
ly
re
motel
y to re
du
ce inter
n
ati
ona
l tr
a
ve
l
. T
his p
r
omo
ted
goo
d go
v
er
na
nce t
hr
ou
gh ag
ile an
d tim
ely d
ec
isi
on ma
kin
g
–
Th
e ne
w pr
o
ce
s
se
s int
ro
du
ced to f
a
cil
it
ate e
ar
ly s
t
ag
e
information flows and ensure that the Non-executive
Dir
ec
to
r
s (
sp
ec
if
ic
al
ly t
he Ch
air
m
an an
d Co
mmi
t
tee
Chai
r
s) h
ad t
he op
po
r
tunit
y for e
ar
l
ier i
npu
t into B
oa
r
d
and C
om
mit
te
e p
ape
r
s w
er
e f
ur
ther e
v
olv
ed a
nd br
iefin
g
processes refined
–
Sig
nif
ic
a
nt impr
o
ve
ment
s w
er
e
ev
id
en
ced at B
o
ar
d me
etin
gs b
oth in
the q
ual
it
y and ti
mel
in
es
s of B
o
ar
d
and C
om
mit
te
e mate
r
ial
s and al
so
the o
pen
ne
s
s and q
ual
i
t
y of d
eb
ate
arising ther
efrom
–
Mee
ting d
y
n
ami
c
s ha
d imp
ro
v
ed
leading to better convers
ations
–
Th
e su
cce
s
s of th
e T
ra
ns
ac
t
ion
Co
mmi
t
tee l
ed to th
e for
mali
s
atio
n of
its ac
ti
vitie
s with the es
tabli
shment of
the F
in
anc
e Co
mmi
t
tee
. T
his h
el
pe
d to
improve information flow
s and decision-
making and guidance in an agile manner
–
Remote o
r hy
br
id meet
ing
s w
ill
conti
nue a
nd th
e or
ga
nis
at
ion o
f Bo
ar
d
and C
om
mit
te
e me
eti
ngs w
or
ks w
ell
STAKEHOL
DER ENGAGEMENT
FY2021 external
evaluation findings
Action taken in FY2022
FY2022 evaluation findings
and actions for FY2023
–
Res
tr
uct
ur
e the B
o
ar
d’s
interac
tion with st
akeholder
s
w
ith m
or
e fo
cu
s on E
S
G,
employee engagem
ent
and hearing cust
omer and
supplier per
spec
ti
ves
–
T
ra
ns
fer t
he r
ol
e of de
si
gnate
d
Non-executi
ve Direc
tor for
employee engagem
ent from the
Se
nio
r Ind
ep
end
ent Di
re
c
tor to
another Non-executive Dire
ctor
–
A st
akeh
ol
der m
ap ha
s be
en d
ev
el
ope
d
–
A Dir
ec
to
r wo
r
k
for
ce e
ng
age
ment s
tr
ateg
y w
as
developed w
ith indiv
idual Non-executiv
e Director
s being
all
oc
ate
d di
v
is
ion
al or f
un
c
tio
nal a
nd ge
o
gr
ap
hic a
re
as o
f
resp
onsibilit
y
. Ov
ersight is prov
ided by the Remuner
ation
& People Committee
–
Th
e S
cie
nce
, Su
st
ain
ab
ili
t
y & Exc
ell
enc
e Co
mmi
t
tee w
a
s
es
t
abl
is
he
d, w
hi
ch pr
o
v
id
ed o
ve
r
si
ght for m
any a
c
ti
v
i
tie
s
connec
ted with the Group’
s stakeholders
–
The Board ac
knowledged tha
t
conti
nue
d fo
cu
s on E
S
G, pe
op
le,
tal
ent
, cul
tur
e an
d sup
pl
ier
s wa
s
cr
i
tic
al
, a
nd th
at the o
ng
oin
g foc
us o
n
the s
ucce
s
s
f
ul e
st
ab
li
shm
ent of th
e
Science, Sus
tainabil
it
y & E
xcellence
Co
mmi
t
tee’s role w
er
e key
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
65
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Comm
it
tee m
embershi
p and mee
ti
ngs
Th
e me
mbe
r
s of th
e C
ommi
t
te
e, th
eir bi
ogr
aphi
es a
nd at
te
nda
nce
at me
etin
gs du
r
ing t
he y
ear c
a
n be fo
und o
n pa
ge
s 5
8
, 59 a
nd 6
3.
Th
e Chi
ef E
xe
cu
ti
ve O
f
fic
er is n
or
m
al
ly inv
i
ted to at
tend Co
mmi
t
te
e
mee
tin
gs an
d at
ten
de
d all b
ut o
ne of t
he me
etin
gs i
n F
Y
2
0
2
2.
O
the
r mem
ber
s of seni
or m
ana
gem
ent ar
e in
v
ite
d to at
ten
d
as neces
s
ar
y
.
Commit
tee p
er
for
mance ev
aluation
In F
Y
2
0
2
2, t
he p
er
for
m
ance o
f the C
om
mit
tee w
as co
ns
ide
re
d
as p
ar
t of the inte
r
na
l Bo
ar
d e
v
alu
atio
n pr
oc
es
s
. O
v
er
all
, i
t w
as
conf
ir
m
ed t
hat th
e Co
mmi
t
te
e cont
inue
s to op
er
ate ef
fe
c
ti
ve
ly.
Com
mit
tee
ac
tiv
i
tie
s
Boar
d succe
ssion
Th
e Bo
ar
d h
as a du
t
y to keep suc
ce
ss
ion p
l
an
s und
er r
eg
ul
ar
re
v
ie
w. T
he No
n-
exe
cu
ti
v
e Dir
e
c
tor
s
, w
i
tho
ut t
he Ch
air
m
an
pr
es
ent a
nd l
ed b
y the S
e
nio
r Ind
ep
end
ent Di
re
c
tor
, dis
cus
s
e
d
the s
ucce
s
si
on ar
r
ange
me
nt
s for th
e Cha
ir
ma
n w
ho r
ea
ch
ed
his ni
ne
-y
ea
r ann
i
ver
sar
y si
nce a
pp
ointm
ent on 1 A
u
gus
t 2
0
2
2
.
Fol
lo
w
in
g the ap
po
intm
ent of P
au
l Ke
el
, th
e Co
mmi
t
tee a
gr
ee
d
and t
he B
oar
d s
upp
or
ted t
hat S
ir Ge
or
g
e Buc
kley s
ho
uld b
e in
vi
ted
to re
main a
s Cha
ir
ma
n to ov
er
s
e
e a pe
r
io
d of sig
nif
ic
a
nt st
r
ate
gic
cha
nge f
or th
e Gr
ou
p. Bo
ar
d s
ucce
s
si
on w
il
l cont
inu
e to be a ke
y
focus du
r
ing F
Y
20
2
3.
T
any
a Fr
at
to i
s s
tepp
ing d
ow
n f
r
om th
e Bo
ar
d at t
he co
nc
lusi
on
of the 2
0
2
2 A
GM
, and t
he Ch
air
m
an le
d th
e se
ar
ch fo
r a Non
-
exec
ut
i
ve D
ir
ec
tor to r
e
pl
ac
e her
. Th
e Co
mmi
t
te
e re
co
mme
nde
d
the a
ppo
intm
ent of R
ich
ar
d Ho
w
es to t
he B
oar
d
, an
d he jo
ine
d as
a Non
-
exec
ut
i
ve D
ir
ec
to
r on 1 S
epte
mbe
r 2
0
2
2
. A
s w
i
th al
l Bo
ar
d
app
oint
ment
s
, th
er
e w
a
s a for
m
al
, r
ig
or
ou
s an
d tr
a
nsp
ar
ent
pr
oc
es
s
, in
vo
lv
in
g all D
ir
ec
to
r
s an
d w
ith r
e
com
men
dat
ion
s b
as
ed
on th
e mer
i
t of th
e ind
i
v
idu
al c
an
did
ates
. Bu
cha
nan H
ar
ve
y & C
o.
wer
e u
se
d as e
xec
uti
v
e s
ear
c
h con
sul
ta
nt
s. T
h
e fi
r
m ha
s no ot
her
conn
ec
t
ion to S
mi
ths a
nd i
s a sign
ator
y to th
e Volunt
ar
y C
od
e of
Conduc
t on Gender Diver
sit
y
.
Th
e Cha
ir
ma
n and t
he Ch
ief E
xe
cu
ti
v
e O
f
f
ic
er c
ar
r
i
ed o
ut th
e
se
ar
ch pr
o
ce
s
s for t
he r
ol
e of Chie
f F
inan
cia
l O
f
f
ice
r w
it
hou
t th
e
for
m
al su
ppo
r
t of an ex
te
r
nal s
e
ar
ch f
ir
m
. Mult
ipl
e c
and
idate
s
wer
e c
ons
id
er
ed
. T
he C
omm
it
te
e w
as int
imate
ly in
vo
lve
d in th
is
pr
oc
es
s an
d w
as r
e
gul
a
r
ly up
date
d on p
ro
gr
e
s
s. C
l
ar
e S
che
r
r
er
,
w
ho w
a
s wel
l k
no
w
n to the C
om
pa
ny, wa
s id
enti
fi
ed a
s be
ing
the p
ref
er
r
e
d ca
ndi
date
. Cl
ar
e pr
e
v
iou
sly w
or
ked for G
old
man
S
ach
s w
he
re s
he sp
ent m
or
e th
an 2
5 ye
ar
s an
d w
as a P
a
r
tner
for m
or
e tha
n a de
c
ade
, and m
os
t r
ec
entl
y Co
-H
ea
d of th
e Glo
ba
l
Industr
ial
s busines
s. Clar
e has ex
tensive exp
erience wor
k
ing
w
ith a b
r
oa
d r
an
ge of i
ndu
st
r
ial c
omp
an
ie
s ar
oun
d th
e glo
be,
acce
ler
ating gr
o
w
th and in
cr
e
asin
g v
al
ue. S
he h
as p
ar
tic
ul
ar
l
y
re
le
v
ant ex
pe
r
ien
ce in t
he s
ec
to
r
s in w
hi
ch Sm
ith
s op
er
ates
.
Chair
man’
s s
t
atement
I am pl
eas
ed t
o pre
s
ent th
e Co
mmit
te
e’
s repor
t for
F
Y20
2
2. T
he C
ommi
t
tee h
as de
leg
ated r
es
po
nsi
bil
it
y
fro
m the B
oar
d to re
v
iew th
e st
r
uc
tur
e, size a
nd
comp
osi
tion o
f the Bo
ar
d an
d it
s C
ommi
t
tee
s
, and to
ens
ure th
at the
y are f
it f
or pu
rp
os
e.
Th
e Bo
ar
d w
h
ole
he
ar
tedly s
upp
or
t
s th
e pr
in
cip
le
s of th
e F
TS
E
Wome
n Le
ad
er
s Re
v
ie
w and t
he P
ar
ke
r Rev
ie
w on g
en
der
and et
hnic d
i
ve
r
si
t
y a
nd w
e we
re d
el
ighte
d to r
ec
omm
end
the a
ppo
intm
ent of a n
ew Ch
ief F
in
anc
ial O
f
fice
r
. We wer
e
al
s
o pl
ea
se
d to r
eco
mm
end a n
ew N
on
-
exec
ut
i
ve D
ir
ec
tor
to the B
oa
r
d. W
h
en ma
kin
g th
es
e r
ec
omm
end
ati
ons
, w
e
con
sid
er
ed t
he b
al
an
ce of sk
il
l
s
, k
no
w
le
dge a
nd e
xp
er
ie
nce o
n
the B
oa
r
d. D
iv
er
sit
y of gend
er
, soc
ial an
d eth
nic b
ac
kgro
un
d
of the D
ir
ec
to
r
s ar
e al
so imp
or
ta
nt con
sid
er
ation
s alo
ng w
i
th
count
r
y of or
i
gin to en
sur
e t
he co
ntinu
ed i
nter
nat
ion
al di
v
er
s
it
y
of the B
o
ar
d. We al
so t
ake into acc
ount t
he Gr
o
up’
s s
tr
ate
g
y,
bus
ine
s
s pe
r
for
ma
nce, c
ur
r
ent a
nd f
ut
ur
e le
ad
er
sh
ip ne
ed
s
,
challenges and oppor
tunitie
s.
We ov
er
s
a
w the s
en
ior m
ana
ge
ment s
ucc
es
si
on p
ipe
li
ne
and p
l
ann
ing an
d dur
ing the y
ea
r we a
ppr
o
ve
d th
e app
oint
me
nt
of se
v
en ne
w E
xe
cu
ti
v
e Co
mmi
t
tee m
emb
er
s. At l
ea
st o
nce a
ye
ar w
e re
v
ie
w s
eni
or ma
nag
em
ent su
cce
s
sio
n pl
an
s an
d the
qual
i
t
y of t
he t
ale
nt pip
el
ine a
cr
os
s t
he Gr
o
up.
Per
i
odi
c
all
y we r
e
v
ie
w the B
o
ar
d’s gov
er
n
anc
e fr
ame
wo
r
k
.
Th
is y
ear w
e r
ec
omm
en
de
d es
t
abl
i
shin
g the S
c
ien
ce,
Sus
t
ain
abi
li
t
y & E
xcell
enc
e Co
mmi
t
tee
, and d
ec
ide
d to ch
ang
e
the ter
ms of re
fer
en
ce of th
e Remun
er
ation C
omm
it
te
e to en
sur
e
mor
e fo
cu
s on p
eo
ple
. T
he F
in
anc
e Co
mmi
t
tee w
a
s for
mali
se
d
and fo
cu
s
es o
n the s
ou
rc
es a
nd us
e of c
a
sh in
clu
ding p
or
t
fo
li
o
ac
ti
v
i
t
y, cha
nge
s to c
ap
it
al s
tr
u
c
tur
e an
d bu
dg
eta
r
y pl
an
ning
.
Mor
e inf
or
ma
tio
n abo
ut o
ur ac
t
i
v
iti
es c
a
n be fo
und o
n the f
ol
lo
w
ing
pa
ge
s
. I wo
uld l
ike to th
ank m
y fel
lo
w Co
mmi
t
te
e mem
ber
s for
thei
r cont
inu
ed ha
r
d wo
r
k ov
er t
he p
er
io
d.
Sir Ge
or
ge W. Buckley
C
HAIR
MAN
OF
T
HE
N
OM
I
NA
TIO
N
& G
OVE
RNAN
C
E C
OM
M
ITTEE
N
OMIN
A
T
I
O
N
&
G
O
VE
R
NAN
C
E
C
O
MMI
T
T
E
E
REP
OR
T
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
66
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Th
e C
ommi
t
te
e con
sid
er
e
d that i
t w
as i
n the b
e
st i
nter
es
t
s of
the G
ro
up an
d it
s s
t
akeh
old
er
s to r
e
com
men
d to th
e Bo
ar
d th
at
Cl
ar
e S
ch
er
r
er b
e app
oi
nted as C
hief F
in
anc
ial O
f
fic
er w
it
h ef
f
ec
t
fr
om 2
9 Ap
r
il 2
0
2
2
. Jo
hn Sh
ips
ey s
tep
pe
d do
w
n a
s Chief F
i
nan
cial
Of
fi
cer an
d fr
o
m the B
o
ar
d of Sm
ith
s Gr
o
up w
it
h ef
fe
c
t f
ro
m
2
9 A
pr
i
l 2
0
2
2
. His r
emu
ner
ation a
r
r
a
nge
ment
s w
er
e ap
pr
o
ve
d by
the Remu
ner
ation & People Committee.
Div
er
sit
y
Smi
th
s Bo
ar
d is h
ighl
y di
ve
r
s
e. I
t sup
po
r
ts th
e pr
i
ncip
le
s of th
e
F
TS
E Wome
n Le
ad
er
s Re
v
ie
w an
d Pa
r
ker Re
vi
ew o
n ge
nde
r and
ethni
c di
v
er
si
t
y and pa
y
s cl
os
e at
tent
ion to th
e inter
nation
al na
tur
e
of it
s m
akeup. M
emb
er
s of the Bo
ar
d an
d s
eni
or ma
nag
em
ent w
il
l
collec
tiv
ely poss
es
s diver
sit
y o
f gender
, national bir
thpl
ace, social
and ethnic backgrounds, cognitiv
e and pers
onal streng
ths, along
w
ith a c
omb
inat
ion of s
ki
ll
s
, e
xp
er
i
ence a
nd k
no
w
le
dg
e. T
hi
s is
imp
or
tant f
or th
e ef
fe
c
ti
v
e op
er
ation of th
e Bo
ar
d a
nd o
ve
r
sig
ht of
the Group.
Th
e C
ommi
t
te
e is r
e
spo
ns
ible f
or r
ec
omm
en
ding a
pp
oint
ment
s
to the B
oa
r
d fol
lo
w
ing i
t
s r
eg
ul
ar a
s
se
s
sm
ent of th
e Bo
ar
d an
d
it
s C
omm
it
te
e
s’ compo
si
tio
n, w
hi
l
s
t al
s
o co
ns
ide
r
in
g the G
ro
up’
s
str
ategic objecti
ve
s. The C
ommit
tee mak
es r
ecommendations
ba
se
d on t
he me
r
it of t
he in
di
v
id
ual c
an
di
date
s, h
av
i
ng du
e re
ga
r
d
for th
e be
nef
it
s o
f di
ve
r
si
t
y i
n the b
r
oa
de
s
t se
ns
e, in
clu
din
g gen
der
and et
hnic
it
y and al
so th
e ne
ed to en
su
re t
he ef
fec
ti
v
e fu
nc
ti
onin
g
of the B
o
ar
d at al
l tim
es
, e
sp
ec
ial
ly as m
emb
er
ship of th
e Bo
ar
d
is
refres
hed.
In or
de
r to hel
p ac
hie
v
e the
s
e asp
ir
a
tio
ns
, th
e Co
mmi
t
tee o
nly
us
es t
he s
er
v
ice
s of e
xec
uti
v
e s
ear
ch f
ir
ms w
ho ha
ve s
ign
ed up to
the Vol
unta
r
y Co
de of C
on
duc
t o
n Ge
nd
er Di
v
er
s
it
y. This ap
pl
ie
s
to man
age
ment p
os
it
ion
s
, not ju
st to t
he B
oa
r
d. E
xe
cu
ti
v
e se
ar
ch
fi
r
ms ar
e a
l
s
o re
qui
re
d to en
sur
e n
on
-UK n
atio
nal
s, w
om
en an
d
ca
ndi
date
s f
ro
m his
tor
ica
lly u
nde
r-
r
epr
e
s
ented e
thni
c gr
oup
s ar
e
re
pr
e
se
nted on t
he sh
or
tl
is
t fo
r all B
o
ar
d po
si
tio
ns
.
Th
e Bo
ar
d m
eet
s a
ll of i
t
s di
v
er
s
it
y tar
ge
t
s, t
he F
T
SE Wo
men
Le
ad
er
s Re
v
ie
w ta
rg
et of 4
0% r
ep
re
s
ent
atio
n of w
ome
n on F
T
SE
35
0 Boa
rd
s
, the P
a
r
ker Rev
i
ew r
e
com
men
dat
ion fo
r F
TS
E 100
comp
an
ie
s to ha
ve o
ne dir
e
c
tor of et
hnic d
i
ver
sit
y
, and t
he F
in
anc
ial
Co
ndu
c
t Au
th
or
i
t
y
’s Lis
tin
g Rul
e w
her
e
by at l
ea
st o
ne s
eni
or b
oa
r
d
pos
it
ion i
s hel
d b
y a wo
man
.
Di
ve
r
si
t
y infor
mat
ion f
or th
e Bo
ar
d
, E
xe
cu
ti
ve C
om
mit
tee, se
nio
r
man
age
r
s an
d the G
r
oup a
s a w
ho
le c
an b
e foun
d on p
ag
e 3
3
.
Th
e Bo
ar
d e
x
ten
ds i
t
s wo
r
k on di
v
er
sit
y to s
en
ior l
ea
der
ship
pos
it
ion
s in th
e bu
sine
s
s an
d ac
ro
s
s the G
r
oup. T
h
e Bo
ar
d D
i
ve
r
si
t
y
Pol
ic
y wa
s r
ev
ie
w
ed d
ur
in
g the y
ea
r and c
a
n be fo
und o
n our
website w
w
w.smiths
.com.
Gover
n
ance
Th
e C
ommi
t
te
e is r
e
spo
ns
ible f
or kee
pin
g the B
o
ar
d’s gov
er
n
anc
e
fr
amew
or
k under r
e
v
ie
w. In F
Y
2
0
2
2 the C
o
mmi
t
tee r
e
com
men
de
d
the e
s
ta
bl
ish
me
nt of the S
c
ien
ce, S
us
t
aina
bil
it
y & E
xcel
le
nce
Co
mmi
t
tee to o
ve
r
s
ee th
e Gr
o
up’
s app
ro
ac
h to sc
ien
ce,
sustainabilit
y and
excellence, incl
uding R&D
, commercialisation,
and s
us
ta
ina
bil
it
y str
ategie
s
. It a
l
s
o r
ev
i
ew
ed t
he op
er
ation of t
he
Remun
er
at
ion C
om
mi
t
tee an
d it
s o
v
er
s
ight of t
he Gr
o
up’
s w
ide
r
Peo
ple
-
re
l
ated a
c
ti
v
i
tie
s
, and r
e
com
men
de
d it
s e
v
olu
tio
n into th
e
Remuneration & People Committee. In addition the
Commit
tee
re
co
mme
nde
d th
e ev
ol
uti
on of th
e T
r
ans
a
c
tio
n Co
mmi
t
te
e into the
F
inan
ce C
omm
it
te
e, w
it
h r
es
po
nsi
bil
it
y for o
ver
sight of th
e Gr
ou
p’
s
so
ur
ce
s and u
se
s of c
a
sh inc
lu
ding p
or
t
fo
li
o ac
ti
v
i
t
y, cha
ng
es to
capit
al str
uc
ture and budg
etar
y planning.
Dur
i
ng th
e ye
ar th
e C
ommi
t
te
e re
v
ie
w
ed th
e Bo
ar
d s
kil
l
s a
nd
exp
er
i
enc
e matr
ix, B
o
ar
d Di
v
er
s
it
y Pol
ic
y and it
s o
w
n T
er
ms of
Reference
. Th
e Co
mmi
t
tee a
l
s
o co
nsi
der
e
d Dir
e
c
tor en
ga
gem
ent
w
ith s
t
akeh
old
er
s
, in
clu
din
g the w
o
r
k
for
ce, b
efor
e t
his
resp
onsibilit
y move
d to
the Remuneration & People Committee.
Indu
c
ti
on
T
o ensur
e t
hat th
ey a
re a
ble to ef
fec
ti
v
el
y contr
ibute to di
sc
us
si
on
s
and d
ec
isi
on-
ma
kin
g, a
ll of o
ur Dir
e
c
tor
s p
ar
tic
ip
ate in an in
duc
t
io
n
pr
og
r
am
me on j
oini
ng th
e Bo
ar
d
. E
ach i
ndu
c
tio
n pl
an i
s ta
ilo
re
d to
pr
ov
i
de th
e ind
i
v
idu
al Di
re
c
tor w
i
th th
e ne
ce
s
s
ar
y kn
ow
l
ed
ge an
d
und
er
s
t
and
ing of t
he Gr
o
up, b
as
ed o
n the
ir pe
r
s
ona
l exp
er
i
enc
e
and b
ac
kgr
oun
d. Gi
v
en h
er al
r
ea
d
y ex
tensi
v
e kn
ow
l
ed
ge of S
mit
hs
,
for Cl
a
re S
c
her
rer th
is in
clu
de
d me
etin
g w
it
h key s
ta
keho
lde
r
s
incl
udi
ng in
ve
s
tor
s
, a
d
v
is
er
s
, th
e ex
tern
al au
dito
r K
P
MG an
d
re
cei
v
i
ng br
iefin
gs o
n the r
ol
e an
d re
sp
on
sib
il
iti
es o
f bei
ng a l
is
ted
comp
an
y dir
e
c
tor
. Cla
re S
c
her
rer h
as al
so v
isi
ted n
ume
ro
us G
ro
up
ope
r
at
ion
s in th
e US a
nd Eur
op
e. T
h
e ind
uc
ti
on pr
o
gr
amme for
Ric
har
d H
ow
e
s has s
imil
arl
y be
en t
ail
or
ed to hi
s ex
pe
r
ien
ce an
d is
cur
r
ent
ly un
der
w
a
y.
Di
ver
sit
y Per
for
mance
Policy target
At l
ea
s
t 5
0
% of t
he B
o
ar
d w
i
th a b
ir
thp
l
ac
e
or b
ac
kgr
o
un
d ou
t
si
de o
f th
e UK
Outside the UK
64%
UK
36%
Po
lic
y
tar
ge
t
:
50%
BIRTHPLACE OR BACKGROUND
Policy target
At l
ea
s
t 4
0
% o
f th
e Bo
ar
d to b
e f
ema
le
Policy target by 2025
At l
ea
s
t on
e of th
e Ch
ai
r
ma
n, S
e
ni
or I
nd
ep
en
de
nt
Dir
e
c
to
r
, Chie
f E
xe
cu
ti
v
e
O
f
ficer
or C
hie
f
F
ina
nc
ia
l O
f
f
ic
er p
o
si
tio
n w
il
l b
e he
ld b
y
a fem
al
e
Current composition
Female Chief Financial Of
ficer
Female
45%
Male
55%
Po
lic
y
tar
ge
t
:
40%
GENDER
Policy target
At l
ea
s
t on
e Di
r
ec
to
r f
r
om a hi
s
tor
ica
ll
y un
de
r
-
repre
sented ethnic group
Current composition
2
Po
lic
y
tar
ge
t
: 1
ETHNICITY
Co
r
r
e
c
t a
s at 16 S
ep
te
mb
e
r 2
0
2
2
.
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
67
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Conflict
s of in
terest
Al
l of ou
r Dir
e
c
tor
s mu
s
t av
oid s
it
uati
on
s w
her
e th
ey h
av
e a dir
e
c
t
or in
dir
ec
t i
nter
es
t th
at co
nfl
ic
t
s
, o
r may p
os
s
ibly c
onf
l
ic
t, w
i
th t
he
be
s
t inter
e
st
s o
f Smi
th
s. T
h
e Bo
ar
d h
as th
e aut
ho
r
it
y to auth
or
i
se
conf
l
ic
t
s an
d pote
ntial c
onf
l
ic
t
s in ac
cor
d
anc
e wi
th o
ur A
r
tic
le
s of
A
s
s
oc
iati
on an
d th
e Co
mpa
nie
s A
c
t 2
0
0
6 (
A
c
t
), and B
o
ar
d app
r
ov
a
l
mus
t b
e gr
ante
d be
for
e a Di
re
c
tor a
ccep
t
s a ne
w ex
te
r
nal
app
oint
ment
, w
het
her i
t am
ount
s to a c
onf
li
c
t or no
t. T
h
e Co
mp
any
Se
cr
et
ar
y ma
int
ains a Re
gi
ste
r of Co
nfl
ic
t
s whic
h is r
e
v
ie
we
d by
the D
ir
ec
to
r
s at le
as
t t
wic
e a ye
ar
, and th
e Bo
ar
d r
et
ains t
he p
ow
er
to v
ar
y or ter
m
inate a
ny au
th
or
is
a
tio
n pr
ev
i
ous
ly pr
o
v
id
ed
.
Dire
c
tor el
ec
tio
n and
re
-
ele
c
tion
Ea
ch y
ea
r Smi
th
s Dir
e
c
tor
s ar
e s
ubje
c
t to el
ec
ti
on or r
e
-
ele
c
tio
n by s
har
eh
ol
der
s at our A
nn
ual G
en
er
a
l Mee
tin
g (
AGM
).
Our Ch
air
m
an
, on b
ehal
f of th
e Bo
ar
d
, ha
s conf
ir
m
ed t
hat e
ach
Non-executi
ve Direc
tor standing for re-elec
tion at this
year’s
AGM c
onti
nue
s to b
e an ef
f
ec
t
i
ve me
mb
er of th
e Bo
ar
d
, and h
as
demonstr
at
ed the commitment required. T
he Senior Independent
Dir
ec
to
r ha
s conf
ir
med th
at the C
hair
man cont
inu
es to b
e ef
f
ec
ti
v
e
and s
upp
or
t
s his r
e
-
ele
c
tio
n to the B
o
ar
d at th
e AG
M. T
he r
ules
re
ga
rd
ing t
he ap
po
intm
ent an
d re
pl
a
cem
ent of Di
re
c
tor
s are
deter
m
ine
d by o
ur A
r
tic
le
s of A
ss
oc
iati
on an
d the A
c
t
. T
he A
r
ti
cle
s
of A
s
s
oc
iati
on c
an b
e fo
und o
n our w
eb
site a
nd c
an o
nly b
e
ame
nde
d b
y a spe
ci
al r
es
ol
ut
ion of s
har
eh
ol
der
s.
Infor
mation a
nd tr
aining
Th
e Bo
ar
d r
e
co
gnis
e
s th
e imp
or
tan
ce of on
go
ing t
r
ai
ning a
nd
our D
ir
ec
tor
s are gi
v
en t
he op
po
r
tunit
y to upd
ate the
ir sk
ill
s and
exp
er
i
enc
e on a r
eg
ul
ar b
as
is
. A
ny i
ndi
v
i
dua
l de
vel
op
ment n
ee
ds
ar
e dis
cu
s
se
d w
it
h the D
ir
ec
to
r
s at th
e annu
al p
er
for
m
ance
ev
al
uati
on
. In or
d
er for t
he D
ir
ec
tor
s to rem
ain a
w
ar
e of bu
sin
es
s
pr
io
r
it
ie
s an
d ex
te
r
nal d
ev
el
opm
ent
s
, th
e Bo
ar
d is p
r
ov
i
de
d w
ith
formal repor
ts and updates from the divisions
, functional leader
s
and e
x
ter
n
al ad
v
i
s
er
s on a r
e
gul
a
r ba
sis
.
Fur
ther to t
he s
al
e of Smi
th
s Me
dic
al to I
CU, in w
hic
h th
e Gr
oup
hol
ds a 10% s
t
ake, Bi
ll S
e
eg
er w
as p
r
ov
i
de
d w
ith s
pe
ci
fi
c tr
a
inin
g
in con
ne
c
tio
n w
ith h
is du
tie
s a
s a US C
om
pan
y Di
re
c
tor an
d
potent
ial c
onf
li
c
t
s of inter
e
s
t bet
we
en IC
U and S
mi
ths
.
In or
de
r to op
er
ate ef
fec
ti
v
el
y our D
ir
ec
tor
s mus
t re
cei
v
e acc
ur
ate,
timely and high-quali
t
y inform
ation. The Comp
any Se
cretar
y
and hi
s tea
m as
si
st t
he Ch
air
m
an an
d Chief E
xecu
ti
v
e O
f
f
ic
er in
ens
ur
in
g ef
f
ec
ti
v
e info
r
mat
ion f
l
ow
s an
d th
at the B
o
ar
d is p
ro
v
id
ed
w
ith a
ll r
el
ev
ant i
nfor
m
ati
on to en
abl
e the D
ir
ec
to
r
s to dis
ch
ar
ge
their responsibil
ities
.
Independence and
objec
ti
v
it
y
Th
e Bo
ar
d ke
eps t
he in
dep
en
den
ce of t
he No
n-
exe
cu
ti
v
e Dir
e
c
tor
s
und
er co
ntinu
ou
s re
v
ie
w. In Jul
y 2
0
2
2, t
he C
omm
it
te
e r
ev
ie
w
ed t
he
guid
anc
e cont
ain
ed i
n the C
od
e an
d as
s
es
s
ed t
he p
er
for
m
anc
e and
ind
epe
nd
enc
e of ea
ch of th
e Non
-
exe
cu
ti
v
e Dir
ec
to
r
s
. It c
onc
lud
ed
that e
ac
h of the
m cont
r
ibu
ted e
f
fe
c
ti
v
ely to th
e op
er
ation of th
e
Bo
ar
d an
d that t
he
y sh
oul
d all b
e co
nsi
de
re
d as i
nde
pe
nde
nt.
T
any
a Fr
at
to w
as app
ointe
d as a D
ir
ec
tor o
n 1 Jul
y 2
01
2 and a
s sh
e
had s
er
v
ed o
n the B
o
ar
d for m
or
e th
an nin
e ye
ar
s a par
ticu
l
ar
ly
r
igo
r
ous r
e
v
ie
w of he
r pe
r
for
man
ce w
a
s und
er
taken
. T
he B
o
ar
d
concluded that she contributed to construc
ti
ve challenge and
deb
ate at me
eti
ngs a
nd th
at sh
e cont
inue
s to d
emo
ns
tr
ate the
qualities of objec
tiv
it
y and independ
ence. It is an
ticipated that
T
any
a Fr
at
to w
i
ll s
tep d
ow
n f
r
om th
e Bo
ar
d at t
he 2
0
2
2 A
GM.
Hav
i
ng s
er
ve
d on t
he B
oar
d f
or mo
r
e tha
n six y
e
ar
s
, Bil
l S
ee
ge
r
and Mark Sel
igman’
s
continued objecti
v
it
y and independence wer
e
al
s
o sub
je
c
t to r
ig
or
ou
s re
v
ie
w. It w
a
s agr
e
ed t
hat th
ey c
onti
nue to
be in
dep
en
dent a
nd o
bje
c
ti
v
e. Ha
v
ing s
er
v
ed o
n the B
o
ar
d for m
or
e
than s
ix y
ea
r
s
, the B
o
ar
d al
so con
si
der
e
d and c
onf
ir
m
ed th
at Si
r
Geor
ge Buckley con
tinues to be objective.
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
68
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Chair
man’
s s
t
atement
I am pl
eas
ed t
o pre
s
ent th
e Co
mmit
te
e’
s repor
t for
F
Y20
2
2. T
he C
ommi
t
tee f
ulf
il
s an i
mpo
r
tant ov
er
sig
ht ro
le,
monitorin
g the integrit
y of the Group’
s financ
ial repor
ting
and th
e ef
f
ec
ti
ve
ne
ss o
f it
s s
y
ste
m of inte
rn
al con
tro
l and
risk management fr
amewo
rk
.
Th
e me
mbe
r
sh
ip of th
e Co
mmi
t
tee h
as r
e
centl
y cha
ng
ed
.
We wel
com
ed R
ich
ar
d Ho
w
es to t
he C
omm
it
te
e fol
lo
w
in
g his
app
oint
ment to t
he B
oa
rd o
n 1 S
eptem
be
r 2
0
2
2. Tanya Fr
atto w
i
ll
be s
tepp
in
g do
w
n fr
om t
he B
oa
r
d and t
her
efo
r
e the C
om
mit
tee
af
ter t
he A
GM in N
ov
emb
er
. I wou
ld l
ike to com
men
d T
any
a’
s
member
ship over many year
s.
Th
e C
ommi
t
te
e met fo
ur tim
e
s dur
i
ng th
e ye
ar
. Eac
h me
etin
g
age
nd
a incl
ud
ed a r
ange of to
pic
s a
cr
os
s t
he C
ommi
t
te
e’
s ar
ea
s of
re
spon
sibili
t
y, including:
–
Consider
ation of financial
rep
or
ting matter
s at each meeting.
At th
e Mar
ch m
eet
ing t
he C
omm
it
te
e r
ev
i
ew
ed t
he h
alf-
ye
ar
re
su
lt
s an
nou
nce
ment a
nd at th
e S
eptem
be
r me
etin
g we
re
v
ie
w
ed th
e A
nn
ual Rep
or
t an
d acco
mp
any
i
ng ma
ter
ia
l
s
, pr
i
or
to the r
el
ea
se of t
he G
ro
up’
s r
es
ult
s
. Ou
r wo
r
k inc
lu
ded r
e
v
ie
w
in
g
the m
ater
ia
l jud
gem
ent
s an
d is
s
ue
s
, incl
udi
ng th
e tr
eat
me
nt of
the s
al
e of Sm
ith
s Me
dic
a
l and t
he di
sc
ontin
uati
on of t
he Gr
o
up’
s
ope
r
at
ion
s in Ru
s
sia
, the r
e
su
lt
s of im
pai
r
me
nt tes
tin
g an
d the
goin
g co
nce
r
n and l
on
g-te
r
m v
iab
ili
t
y ass
e
s
sme
nt
s.
–
We per
for
med de
ep
-
di
v
e re
v
ie
w
s on o
ur pr
incip
al r
i
sk
s
including su
pply chain, product qualit
y,
customers and
contrac
tual obligations. Div
isional Pre
sidents and their t
eams
at
ten
ded C
om
mi
t
tee m
eet
ing
s on a r
ot
atio
nal b
as
is an
d
pr
es
ente
d th
eir r
i
sk r
eg
is
ter
s an
d pr
incip
al r
i
sk de
ep
-
di
v
es
.
Th
is al
lo
w
ed th
e C
ommi
t
te
e to gain a
n und
er
s
t
and
ing of t
he
cult
ur
e an
d r
isk
s p
r
es
ent t
hr
ou
gho
ut th
e or
ga
nis
at
ion
.
–
Our Finance E
xcellence Pr
ogr
amme, par
ticular
ly in rel
ation
to inter
n
al cont
r
ol
s
, c
ontin
ue
s to be a f
oc
us for t
he C
om
mit
te
e
and w
e ar
e mo
ni
tor
in
g pote
ntial d
ev
el
opm
ent
s in r
el
ation to th
e
audi
t an
d go
ve
r
nan
ce r
efor
ms, a
s we
ll a
s ho
w we m
ight r
e
sp
ond
to cha
nge
s in r
e
gul
at
ion
.
–
Beh
av
in
g eth
ic
al
ly an
d w
ith i
ntegr
i
t
y is a fun
dam
ent
al p
ar
t of our
Valu
es
. T
he S
e
nio
r V
ic
e Pr
e
si
dent an
d G
ene
r
al C
ou
ns
el
, Eth
ic
s
and Compliance at
tended our March and September Commi
t
tee
mee
tin
gs an
d pr
o
vi
de
d up
date
s on o
ur Ethi
c
s an
d Co
mpl
ian
ce
(E&C) p
r
ogr
amme
. Our E&C p
r
ogr
amme fo
cu
se
s o
n high
er r
i
sk
and c
r
it
ic
al ar
e
as su
ch a
s br
ib
er
y an
d cor
ru
ptio
n, h
uman r
ight
s,
inter
n
atio
nal t
r
a
de an
d pr
i
v
a
c
y/dat
a pr
ote
c
tio
n. We r
e
cei
v
e
a re
po
r
t on dat
a comp
ile
d f
ro
m ‘S
pe
ak Ou
t’, our conf
ide
ntia
l
repor
ting hotline,
and any mat
er
ial investigations.
Our e
x
ter
n
al au
dito
r
, KP
MG, co
ntin
ue
s to pr
o
v
ide r
ob
us
t ch
al
len
ge
to man
age
ment a
nd p
ro
v
id
e
s it
s in
dep
en
dent v
i
ew to t
he
Co
mmi
t
tee o
n spe
ci
f
ic f
ina
nci
al r
epo
r
ting ju
dg
eme
nt
s an
d the
control envir
onment.
I’
d l
ike to than
k my co
ll
ea
gue
s o
n the C
om
mit
te
e fo
r thei
r
contr
ibut
ion du
r
in
g the y
ea
r and I l
oo
k for
w
ar
d to c
ontin
uin
g our
wo
r
k in F
Y
2
0
2
3
.
Mark S
eligman
CH
A
IR
M
A
N O
F T
HE AUD
I
T & RI
SK C
OMM
IT
T
E
E
Comm
it
tee m
embershi
p and mee
ti
ngs
Al
l me
mbe
r
s of th
e Co
mmi
t
te
e ar
e ind
ep
end
ent No
n-
e
xecu
ti
v
e
Dir
ec
to
r
s an
d col
le
c
ti
v
ely h
av
e r
ece
nt and r
e
lev
ant fin
anc
ial
,
accounting and sector exper
ience. Commit
tee member biogr
aphies
and at
tendan
ce at me
eti
ngs d
ur
in
g the y
e
ar c
an b
e foun
d on
pa
ge
s 5
8,
59
a
nd
6
3. T
h
e Bo
ar
d co
nsi
de
r
s th
at Mar
k S
e
li
gma
n
has t
he r
ec
ent an
d r
ele
v
ant f
in
anci
al ex
p
er
ie
nce r
e
quir
e
d to cha
ir
the C
o
mmi
t
te
e.
At th
e inv
i
t
atio
n of th
e Chai
r
man o
f the C
om
mit
te
e, an
d in or
d
er to
maintain ef
fec
ti
ve commun
icatio
ns, the Chair
m
an, Chief E
xecuti
v
e
Of
fi
cer an
d Chi
ef F
inan
cia
l O
f
f
ic
er an
d an au
dit p
ar
tne
r of K
P
MG
at
ten
ded a
ll m
eet
ing
s. O
t
her r
e
gul
a
r at
ten
de
es in
clu
de
d th
e
Gr
oup F
i
nan
cial C
o
ntr
ol
ler
, the Di
re
c
tor of I
nter
na
l Au
dit
, S
en
ior
V
ice P
r
e
sid
ent an
d Ge
ner
al Co
uns
el
, Et
hic
s a
nd C
omp
l
ianc
e, th
e
Co
mp
any S
e
cr
et
ar
y and D
ep
ut
y Se
cr
et
ar
y. Di
v
isi
ona
l Pr
e
si
dent
s
,
the V
ice Pr
e
si
dent F
in
anc
e E
xce
lle
nce a
nd s
eni
or ma
na
gem
ent
wer
e a
l
s
o inv
i
ted to at
tend as ap
pr
op
r
iate
. P
w
C, as th
e au
dito
r of
Smi
th
s Med
ic
al
, al
so at
ten
de
d on
e Co
mmi
t
tee m
eet
ing
. At t
he
con
clu
sio
n of me
etin
gs
, K
P
MG a
nd th
e Dir
e
c
tor of Inte
r
nal A
ud
it
wer
e e
ac
h gi
ve
n the o
pp
or
tuni
t
y to disc
us
s mat
ter
s w
ith t
he
Co
mmi
t
tee w
i
tho
ut e
xec
uti
v
e ma
na
gem
ent b
eing p
r
es
ent
.
Th
e he
ad
s of Inter
n
al A
udi
t an
d Ethi
c
s and C
om
pl
ian
ce, to
get
her
w
ith K
P
M
G, hav
e dir
e
c
t acc
es
s to t
he C
omm
it
te
e sho
ul
d the
y w
is
h
to r
ai
se an
y co
nce
r
ns o
ut
si
de fo
r
ma
l Co
mmi
t
tee m
eet
ing
s.
Th
e C
ommi
t
te
e wo
r
k
s to a st
r
uc
t
ur
ed p
r
ogr
amme of a
c
ti
v
it
ie
s and
mee
tin
gs to co
inc
ide w
i
th key e
v
ent
s ar
ou
nd o
ur f
inan
cia
l c
alen
da
r
and
, on b
eha
lf of th
e Bo
ar
d
, to pr
o
v
ide o
ve
r
si
ght of th
e Gr
ou
p’
s
r
isk m
ana
ge
ment a
nd inte
r
nal c
ontr
o
l pr
oc
es
s
. T
he Ch
air
m
an of
the C
om
mit
te
e r
ep
or
ts f
or
m
all
y to the B
o
ar
d on th
e C
ommi
t
te
e’
s
acti
v
ities af
ter each meeting.
Commit
tee p
er
for
mance ev
aluation
Th
r
oug
h the a
nnu
al Bo
ar
d e
v
alu
ati
on pr
o
ce
s
s, s
e
e pa
ge
s 6
4
and 6
5
, the B
o
ar
d ha
s ag
ain co
nf
ir
me
d th
e ef
fe
c
ti
v
en
es
s of t
his
Co
mmi
t
tee in i
t
s r
ol
e of sup
po
r
ting th
e Bo
ar
d in c
omp
li
anc
e w
ith
its dutie
s.
AUDIT
, RISK AND
INTERNAL CONTROL
A
U
DIT & R
I
S
K
C
O
MMI
T
T
E
E
REP
OR
T
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
69
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
fi
nan
cial y
e
ar
. His tenur
e w
il
l be l
imi
ted to f
i
v
e ye
ar
s in l
in
e w
it
h aud
it
st
an
dar
d
s and d
ue to K
P
MG p
ar
tne
r r
otat
ion p
ol
ic
ie
s
.
Th
e C
ommi
t
te
e conf
ir
m
s th
at the C
om
pa
ny h
as co
mpl
ie
d w
it
h
the p
ro
v
is
ion
s of th
e St
atu
tor
y A
udi
t S
er
v
ice
s O
rd
er 2
014 re
l
atin
g
to the UK a
udi
t ma
r
ket for l
a
rg
e co
mp
anie
s th
r
oug
hou
t th
e ye
ar
und
er r
ev
i
ew a
nd as a
t the d
ate of thi
s r
epo
r
t.
Sco
pe of t
he ex
te
r
nal au
dit p
l
an an
d fe
e pro
po
sa
l
At i
t
s No
vem
be
r 2
0
21 me
etin
g the C
om
mit
tee re
v
ie
w
ed an
d
app
ro
v
ed K
P
MG
’s prop
os
ed a
udi
t pl
a
n. T
he f
ee fo
r the F
Y
20
2
2
audi
t w
a
s agr
e
ed in J
uly 2
0
2
2
. T
he C
om
mit
tee cont
inue
d to
mon
itor K
PMG’s exec
uti
on of th
e 2
0
2
2 au
dit p
l
an du
r
ing t
he y
ea
r
.
Smiths Medical
Due to P
w
C
’s under
s
t
and
ing of S
mi
ths M
ed
ic
al
’
s fin
anc
ial
re
po
r
ting an
d inter
n
al co
ntr
ol en
v
ir
on
ment a
nd th
e wo
r
k ne
ce
s
s
ar
y
to supp
or
t th
e se
pa
r
ati
on of th
at bu
sin
es
s
, P
w
C co
ntin
ued to a
c
t
as th
e aud
itor f
or S
mit
hs Me
dic
a
l until t
he s
al
e of the b
us
ine
s
s on
6 Jan
uar
y 2
0
2
2
. P
w
C pr
o
v
ide
d an up
date to t
he C
omm
it
te
e at it
s
September 20
21 meeting.
Independence and objecti
vit
y
Th
e C
ommi
t
te
e is r
e
spo
ns
ible f
or th
e imp
lem
ent
atio
n an
d
mon
itor
ing of th
e Gr
oup’s poli
cie
s on e
x
ter
nal aud
it
, w
hic
h
ar
e de
sig
ne
d to maint
ain t
he o
bje
c
ti
v
it
y and s
af
egu
ar
d th
e
ind
epe
nd
enc
e of the e
x
ter
nal aud
itor
. Th
e
se p
ol
ici
e
s ar
e re
v
ie
w
ed
annu
all
y. The
y co
v
er th
e eng
ag
eme
nt of the e
x
ter
nal aud
itor f
or
non
-au
di
t se
r
vi
ce
s and t
he ap
po
intm
ent b
y the G
r
oup of f
or
me
r
emp
loy
e
es of t
he e
x
ter
n
al au
dito
r
.
In ad
dit
ion to m
oni
tor
i
ng co
mpl
ia
nce w
i
th Gr
o
up po
l
icie
s
, th
e
Co
mmi
t
tee’s rev
ie
w of K
P
M
G’s indep
end
enc
e inc
lud
ed e
xam
inin
g
wr
it
ten confirmation fr
om KP
MG that they remained independent
and o
bje
c
ti
v
e w
ith
in th
e conte
x
t of ap
pl
ic
ab
le pr
of
es
s
ion
al
st
an
dar
d
s and c
on
sid
er
in
g the p
er
for
mance of t
he au
di
t
engagement par
tn
er
.
Non-audit ser
vices
Not
wi
ths
t
an
ding d
ev
el
opi
ng pr
ac
tic
e bei
ng a
dopte
d b
y audi
t f
ir
m
s
not to pr
o
v
id
e non
-a
udi
t se
r
v
ice
s to au
dit c
li
ent
s
, the C
om
mi
t
tee
recognis
es that cer
tain per
mis
sible non-audit ser
vices c
an be
comp
lete
d mo
re ef
fic
ient
ly b
y, and be p
urc
ha
se
d mo
r
e cos
t-
ef
fe
c
ti
v
ely f
r
om
, the i
ncu
mbe
nt aud
ito
r due to th
e au
dit f
ir
m’s
exi
s
tin
g kn
ow
l
ed
ge of th
e Gr
o
up and i
t
s s
y
s
tems
. Un
de
r the p
ol
ic
y
app
ro
v
ed b
y the C
om
mi
t
tee, i
t ha
s de
leg
ated i
t
s r
es
po
nsi
bil
it
y for
aut
hor
ising t
he pu
rc
ha
se of n
on
-au
di
t ser
v
i
ce
s fr
o
m the e
x
ter
n
al
audi
tor to t
he Ch
air
m
an of th
e Co
mmi
t
tee a
nd
/or th
e Chie
f
Financial Of
ficer within specif
ic limits
.
Det
ail
s of the fe
es p
ai
d to K
P
MG fo
r the y
ea
r end
ed 31 Ju
ly
2
0
2
2 ca
n be f
oun
d in note 2 of t
he f
in
anc
ial s
t
ateme
nt
s on p
age
1
2
0. N
on-
aud
it fe
e
s as a p
er
cent
ag
e of au
dit f
ee
s tot
all
ed 1
1
%
(F
Y
2
0
21
: 13%
). Non
-au
dit f
ee
s co
mpr
i
s
e audi
t r
el
ate
d as
su
r
an
ce
se
r
vi
ce
s and f
ee
s in co
nne
c
ti
on w
i
th th
e s
ale of S
mit
hs M
edi
c
al
.
Th
e Gr
o
up wo
ul
d not ex
p
ec
t in t
he or
d
inar
y c
our
s
e of b
usi
ne
s
s for
non
-au
di
t fee
s to exc
ee
d 2
0
% of th
e av
er
a
ge of t
he p
re
v
io
us th
re
e
ye
ar
s’ total G
r
oup a
udi
t fe
es un
le
s
s excep
tio
nal c
ir
cum
s
tan
ce
s
exi
s
ted
. T
he C
ommi
t
te
e conf
ir
ms that t
he no
n-
aud
it w
or
k
per
for
med b
y K
P
MG, w
hic
h inc
lud
ed w
or
k in pre
pa
r
ati
on fo
r
the s
ep
ar
ation of S
mit
hs M
edi
c
al dur
ing the y
ea
r
, was p
r
ope
r
ly
as
s
es
s
ed a
nd au
th
or
i
se
d in ac
cor
d
ance w
i
th t
he Gr
o
up’
s pol
i
c
y.
Com
mit
tee
ac
tiv
i
tie
s
Fin
ancial an
d nar
r
ati
ve r
epor
tin
g
Th
e C
ommi
t
te
e re
v
ie
w
ed t
he f
ull a
nd h
alf y
ea
r
ly r
e
sul
t
s
ann
oun
ceme
nt
s
, the A
nnual Rep
or
t and t
he v
ia
bil
it
y and g
oin
g
concern s
tatements before recommen
ding them to
the Boar
d
for appro
val
.
Th
e Gr
o
up ha
s inter
n
al co
ntr
ol an
d r
is
k man
ag
eme
nt
ar
r
a
ng
eme
nt
s in pl
a
ce to sup
po
r
t the f
ina
nci
al r
ep
or
ting
proces
s which prov
ide reasonable assur
ance that t
he financial
st
atem
ent
s ar
e p
re
pa
re
d in a
ccor
d
anc
e w
ith a
ppl
ic
a
ble s
t
and
ar
ds
.
Th
e
se a
r
r
an
ge
ment
s i
ncl
ude
d s
ee
kin
g di
v
is
ion
al co
nf
ir
mat
ion t
hat
the r
ep
or
ted inf
or
m
atio
n gi
v
es a t
r
ue an
d f
air v
i
ew of t
he r
e
sult
s
for th
e pe
r
io
d and e
ns
ur
in
g that r
e
co
rd ke
epi
ng al
lo
w
s an a
ccur
ate
and fair reflection of tr
ansac
tions. More information on risk
man
age
ment a
nd inte
r
nal c
ontr
o
l
s c
an b
e fou
nd on p
a
ge 7
3
.
A
n imp
or
ta
nt re
sp
on
sib
il
it
y of the C
omm
it
te
e is to r
e
v
iew a
nd
agr
e
e the m
os
t si
gnif
i
ca
nt man
ag
eme
nt acc
ounti
ng e
s
tim
ates
and ju
dg
eme
nt
s w
hic
h imp
ac
t t
he f
ina
nci
al s
tate
ment
s
. T
he ke
y
ar
ea
s of jud
ge
ment in t
he y
ea
r ar
e set o
ut o
n pa
ge
s 71 an
d 72
.
Af
ter r
ece
i
v
ing r
ep
or
t
s on th
e sig
nif
ic
a
nt es
ti
mate
s an
d ar
ea
s
of jud
gem
ent an
d af
ter dis
cus
s
ion w
i
th K
P
MG, t
he C
omm
it
te
e
agr
e
ed th
at th
e jud
gem
ent
s m
ade w
er
e ap
pr
op
r
iate a
nd co
r
r
ec
t
ly
ref
le
c
ted a
nd p
re
s
ente
d in th
e A
nnu
al Rep
or
t.
Fai
r
, bal
anced and underst
andable
Th
e C
ommi
t
te
e app
li
ed t
he s
am
e due di
li
gen
ce ap
pr
o
ach a
do
pted
in pr
e
v
iou
s ye
ar
s i
n or
de
r to as
s
es
s w
h
ethe
r the A
nnual Rep
or
t is
fa
ir
, bal
an
ced a
nd un
der
st
and
abl
e, on
e of th
e key UK C
or
p
or
ate
Go
ve
r
nan
ce C
od
e re
qu
ir
eme
nt
s. T
h
is inc
lu
ded b
ein
g up
date
d
on th
e inter
n
al ve
r
if
ic
at
ion p
r
oce
s
s c
ar
r
ied ou
t to sup
po
r
t the
Co
mmi
t
tee’s ass
es
s
ment of t
he di
sc
lo
sur
e
s ma
de in t
he A
nn
ual
Repo
r
t. T
he C
om
mit
te
e al
so r
ev
ie
w
ed v
a
r
io
us mate
r
ial
s on
r
isk m
ana
ge
ment a
nd inte
r
nal c
ontr
o
l
s
, go
ing c
once
r
n an
d
the a
s
se
s
sm
ent of th
e Gr
ou
p’
s lon
g-ter
m via
bil
it
y. In doing s
o
it considered:
–
the a
ccur
ac
y, integr
i
t
y and con
si
ste
nc
y o
f the m
es
s
a
ge
s
con
ve
ye
d in th
e A
nn
ual Rep
or
t;
–
the a
ppr
op
r
iate
ne
s
s of th
e le
vel of d
et
ail in t
he
narr
ative repor
ting;
–
the corr
elation bet
w
een judgements
, estimation of uncer
tainties
and i
s
sue
s an
d the a
s
so
ci
ated di
s
clo
sur
e
s; and
–
the e
xp
l
anat
ion
s of th
e dif
fer
enc
es b
et
wee
n st
at
utor
y a
nd
hea
dl
ine r
e
po
r
ted re
su
lt
s
.
T
aking t
he ab
o
ve into a
cco
unt, to
get
her w
i
th t
he v
ie
w
s ex
pr
e
s
se
d
by K
P
MG, t
he C
omm
it
te
e r
ec
omm
end
ed
, and i
n tur
n t
he B
oa
r
d
conf
ir
m
ed
, th
at the 2
0
2
2 A
nnual Rep
or
t, t
aken a
s a w
ho
le, i
s
fair
,
bal
anced and under
s
tandable and pr
ov
ides the nece
ss
ar
y
infor
mation f
or sh
ar
eh
old
er
s to a
s
se
s
s th
e Co
mp
any
’s posi
tio
n,
per
for
mance
, bus
ine
s
s mo
de
l and s
tr
ateg
y.
E
x
ter
nal au
dit
Th
e C
ommi
t
te
e pl
ac
es g
re
at im
po
r
tanc
e on th
e qua
li
t
y,
ef
fe
c
ti
v
ene
s
s an
d ind
ep
end
en
ce of th
e ex
te
r
nal a
udi
t pr
o
ce
s
s.
Fol
lo
w
in
g a tend
er pr
o
ce
s
s K
P
MG w
as a
pp
ointe
d as t
he
Co
mp
any
’s exte
r
na
l audi
tor at t
he 2
019 Ann
ual G
en
er
a
l Me
etin
g.
Mich
ael M
alo
ne
y, the K
P
MG au
dit p
ar
tn
er r
es
po
nsi
ble f
or th
e
Co
mp
any
’s audit s
ince 2
019 wil
l r
etir
e fo
ll
ow
i
ng th
e com
plet
io
n
of the F
Y
2
0
2
2 a
udi
t
. Fur
ther to a
n ex
te
nsi
v
e s
ele
c
tio
n pr
o
ce
ss
ov
er
s
ee
n by t
he Ch
air
m
an of th
e Co
mmi
t
te
e, Mic
hae
l Ba
r
r
a
de
ll
w
ill b
e app
oi
nted a
s the l
ea
d eng
ag
eme
nt pa
r
tner fo
r the n
ex
t
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
70
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
The key a
rea
s of ju
dge
men
t for F
Y2
0
22 a
re as f
ol
low
s:
Areas of focus
Actions taken
MEDIC
A
L DI
SP
OS
A
L AC
C
OUN
TIN
G
On 6 Ja
nua
r
y 2
02
2, the G
r
oup co
mpl
eted t
he
s
ale of S
mit
hs M
edi
c
al to IC
U Me
dic
al
, In
c. (
I
CU
).
A
s p
ar
t of th
e sa
le th
e Gr
ou
p has i
nc
ur
r
ed an
d
pr
ov
i
de
d for s
ep
ar
ation e
xp
ens
e
s
, that a
r
is
e f
ro
m
contrac
tual and commercial obligations due
to
the s
ep
ar
ation
, and h
as r
et
ain
ed a 10% h
ol
din
g in
ICU a
nd r
ec
ei
ve
d $1
0
0
m of def
er
r
e
d conti
ng
ent
consider
ation, the value
s of which are dependent
on th
e ICU s
har
e p
r
ice
.
The Commit
tee consider
ed the constituent elements of the separ
ation expens
es
incl
ud
ed w
i
thin t
he ne
t gain o
n s
ale of S
mi
ths M
ed
ic
al an
d r
ev
ie
w
ed t
he
app
ro
pr
i
atene
s
s of th
e pr
o
v
isi
on
s mad
e r
el
ati
ng to th
e s
ale a
nd th
e tr
a
ns
iti
on
se
r
vi
ce
s bei
ng p
ro
v
id
ed b
y Sm
ith
s Gr
o
up to Smi
th
s Me
dic
al
.
Th
e C
ommi
t
te
e re
v
ie
w
ed t
he f
ina
nci
al r
epo
r
ting t
re
atm
ent an
d the b
a
sis f
or
determining the fair value of the def
er
red contingent consider
ation, which
has b
ee
n cl
a
s
sif
ie
d as a f
in
anc
ial a
s
se
t at fa
ir v
alu
e thr
o
ugh p
r
ofi
t an
d los
s
.
Th
e 31 July 2
02
2 IC
U sha
r
e pr
ic
e of cir
c
a $1
77 (6 J
anu
ar
y 2
0
2
2: $
2
31) was 2
3%
do
w
n fr
om w
h
en th
e s
ale c
omp
lete
d. T
hi
s r
edu
c
tio
n in sh
ar
e pr
i
ce ha
s r
es
ulte
d
in Smi
th
s r
eco
gni
sin
g f
air v
al
ue lo
s
se
s th
r
oug
h the In
co
me St
atem
ent an
d O
the
r
Co
mpr
eh
en
si
ve I
nco
me. S
e
e note
s 14 and 2
7 of th
e f
inan
cia
l st
atem
ent
s
.
RE
V
ENUE REC
OGNIT
ION
Smi
th
s Dete
c
tio
n and S
mi
ths I
nter
conn
ec
t h
av
e
mult
i-
ye
ar co
ntr
a
c
tu
al ar
r
ange
ment
s f
or th
e s
ale
of go
od
s and s
er
v
ic
es
. E
s
ti
mate
s ar
e r
eq
uir
ed
at the B
al
a
nce S
he
et date w
h
en dete
r
min
ing
the s
t
ag
e of com
plet
io
n of cont
r
ac
t
s f
or
rev
enue recognition
.
Th
e C
ommi
t
te
e re
v
ie
w
ed m
ana
gem
ent
’s rev
enu
e re
co
gni
tio
n jud
ge
ment
s
.
Th
e C
ommi
t
te
e note
d that t
he ti
min
g of r
ev
enu
e re
co
gni
tio
n inv
ol
ve
s ju
dg
eme
nt
s
as to w
he
n cont
ro
l of an a
s
set p
a
ss
e
s to th
e cus
tom
er o
r
, p
ar
ti
cul
a
r
ly in S
mit
hs
Dete
c
tio
n and S
mi
ths I
nter
conn
ec
t
, as to t
he s
t
age o
f com
plet
ion o
f cont
r
ac
t
ac
ti
v
i
t
y a
nd w
he
the
r the s
ep
ar
ate per
for
m
ance o
bl
ig
atio
ns h
av
e be
en f
ul
fil
le
d.
Th
e C
ommi
t
te
e re
v
ie
w
ed an
d co
ncu
r
r
ed w
i
th ma
nag
em
ent’s conc
lus
ion
s on
the s
igni
f
ic
ant ju
dg
eme
nt
s for c
omp
lex p
ro
gr
amme
s an
d cont
r
ac
t a
cco
untin
g.
Se
e no
te 1 of the f
in
anc
ial s
t
ateme
nt
s
.
TA
X
AT
I
O
N
Th
e Gr
o
up ha
s ex
te
nsi
v
e inter
nation
al op
er
ation
s
and in t
he n
or
m
al co
ur
s
e of bu
sin
es
s th
e
Dir
ec
to
r
s ma
ke jud
gem
ent
s an
d e
st
imate
s in
re
l
atio
n to pote
ntial t
a
x ex
po
sur
e
s
.
Th
e as
s
et
s an
d li
abi
li
tie
s r
ec
og
nis
ed i
n inc
ome a
nd def
er
r
ed t
a
x
, as w
el
l as th
e
tr
eat
ment of l
os
s
es i
n the U
K
, w
er
e as
s
e
s
se
d. P
ar
tic
ul
ar f
oc
us w
a
s gi
ve
n to the
re
co
gni
tio
n of UK de
fer
r
e
d ta
x as
s
et
s; def
er
r
ed t
a
x as
s
et
s r
el
ati
ng to th
e Jo
hn
Crane, Inc. asbe
stos prov
ision; and
the Titeflex Cor
por
ation CS
ST pr
ovi
sion.
Th
e C
ommi
t
te
e note
d the o
ng
oin
g ta
x au
dit
s t
hat ar
e l
ikely to c
onc
lu
de in
the n
ex
t 12 to 24 mo
nths
, an
d th
e unce
r
taint
y as
so
ci
ated w
i
th th
eir o
utco
me.
Th
e C
ommi
t
te
e note
d that t
he f
in
al ou
tcom
e may v
ar
y signi
fi
c
antl
y fr
om t
he
amo
unt
s cu
r
r
ently p
r
ov
i
de
d for t
ax r
isk
s. S
e
e note 6 of t
he f
ina
nci
al s
ta
teme
nt
s.
IMPAIRMEN
T – INTANGIBL
E A
SSE
TS (INC
LUDING G
OOD
W
ILL
) AND RU
S
SI
A
Th
e Gr
o
up ho
lds a s
ign
if
ic
ant a
mou
nt of go
od
w
il
l
,
es
pe
cia
lly i
n re
l
atio
n to th
e Smi
th
s Dete
c
tio
n c
ash
gener
ating unit (CGU).
Th
e int
an
gibl
e as
s
et
s an
d the a
s
sump
tio
ns u
se
d to jus
ti
f
y thei
r ca
r
r
y
ing v
a
lue
s
wer
e r
e
v
ie
we
d, i
ncl
udin
g th
e app
li
c
abl
e dis
co
unt r
ate u
se
d for i
mp
air
m
ent
test
ing
purpos
es.
Smi
th
s Dete
c
tio
n w
as t
he Gr
o
up’
s only C
G
U w
her
e th
e imp
air
ment he
adr
o
om w
a
s
mor
e l
imi
ted fo
r F
Y
2
0
2
2 an
d w
her
e a pl
ausib
le do
w
ns
ide s
ce
nar
io or a re
as
on
abl
e
cha
nge i
n key as
s
umpt
ion
s co
uld c
a
us
e the c
ar
r
y
i
ng v
al
ue of t
he C
GU to exce
ed
it
s r
ec
ov
er
able v
al
ue. S
mi
ths D
ete
c
tio
n’
s limi
ted i
mp
air
m
ent he
adr
o
om i
s dr
i
v
en
by a l
ow
er s
t
ar
ting p
oint f
r
om t
he F
Y
2
0
2
2 o
ut
t
ur
n
, ref
le
c
ti
ng a di
f
f
ic
ult m
ar
ket
sub
se
que
nt to CO
V
I
D-
1
9 tha
t has i
mp
ac
ted i
t
s av
i
ati
on s
ec
ur
it
y cus
tom
er
s
, an
incr
e
as
ed d
is
cou
nt r
ate dr
iv
en by t
he m
acr
o
ec
ono
mic h
ur
dle
s in F
Y
2
0
2
2 a
nd th
e
imp
ac
t of tem
po
r
ar
y s
upp
ly ch
ain is
s
ue
s
. Ea
r
nin
gs gr
o
w
th w
ith
in the i
mp
air
m
ent
mo
del i
s fr
om t
he l
ow
er F
Y
2
0
2
2 b
as
e p
osi
ti
on an
d the C
GU r
e
co
ver
able a
mou
nt
exce
ede
d i
t
s ca
r
r
y
ing v
a
lue - t
her
efo
r
e no im
pai
r
me
nt w
as n
ece
s
s
ar
y. Th
e
Co
mmi
t
tee h
as r
e
v
ie
we
d the a
dd
iti
ona
l dis
cl
os
ur
es m
ad
e ar
oun
d thi
s imp
air
m
ent
re
v
ie
w. S
ee n
ote 1
1 of the fi
nan
cial s
t
atem
ent
s
.
A
s an
no
unce
d w
i
th th
e H
Y
2
0
2
2 inter
im re
sul
t
s, t
he G
ro
up su
sp
end
ed s
a
le
s into
Rus
si
a. T
h
e Co
mmi
t
tee a
gr
ee
d w
it
h the R
us
si
a imp
air
m
ent ch
ar
ge a
nd r
el
ate
d
w
ind d
ow
n c
os
t
s
. Th
e C
ommi
t
te
e has a
l
s
o ag
re
ed t
hat t
he
se i
tem
s ar
e mater
ial
in qua
ntum an
d sh
oul
d be s
ep
ar
ately dis
cl
os
ed t
hr
ou
gh th
e non
-h
ea
dl
ine i
tem
s
w
ith
in the i
nco
me s
t
ateme
nt. S
e
e note 3 of t
he f
in
anc
ial s
t
ateme
nt
s.
SIGNIFICANT FINA
NCIA
L REPORTING MA
T
TERS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
71
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Areas of focus
Actions taken
PRO
V
IS
ION
S FOR L
I
A
BILI
T
IE
S A
ND CH
A
R
GE
S
Th
e Gr
o
up ho
lds s
ign
if
ic
ant m
ater
ia
l pr
o
v
isi
ons
for Jo
hn Cr
ane, In
c. a
sb
es
to
s re
s
ol
uti
on; an
d the
Titeflex Cor
por
ation CS
S
T product cl
aims.
Th
e C
ommi
t
te
e con
sid
er
e
d the ap
pr
op
r
iate
ne
s
s of th
e lev
el of t
he p
ro
v
is
ion
s
held against John Crane, Inc. asbestos litigation and the Titeflex Corpor
ation
CS
ST c
l
aim
s. In p
ar
tic
ul
ar
, the C
om
mit
tee con
sid
er
ed t
he tr
e
atme
nt of
potent
ial l
iab
il
it
ie
s, t
he ch
an
ge
s to the a
s
sum
ptio
ns m
ad
e in c
alc
ul
ati
ng
the p
ro
v
is
ion
s
, se
ns
iti
v
i
tie
s to ch
an
ge
s in as
s
umpt
ion
s an
d ad
v
ic
e re
cei
v
e
d
fr
om t
he Gr
o
up’
s sp
eci
al
is
t ex
tern
al a
d
v
is
er
s
. T
he C
om
mit
tee agr
ee
d th
e
conti
nue
d ap
pr
op
r
iaten
e
ss o
f the ten
-
ye
ar ti
me p
er
io
d for J
oh
n Cr
an
e, In
c.
asb
e
sto
s li
ti
gati
on
. In the c
a
s
e of the J
ohn C
r
an
e, Inc
. a
sb
es
tos l
i
tig
atio
n, t
he
Co
mmi
t
tee a
l
s
o agr
e
ed w
i
th th
e jud
gem
ent t
hat
, w
hil
s
t l
a
rg
e num
be
r
s of cl
a
ims
ar
e mad
e ag
ain
st J
ohn C
r
an
e, Inc
. a
nd oth
er de
fen
dant
s e
ve
r
y ye
ar
, due to bot
h
kn
ow
n an
d as y
et un
kn
ow
n d
ev
elo
pm
ent
s in t
he US l
eg
al s
y
s
tem an
d oth
er ev
ent
s
that w
il
l im
pa
c
t the a
sb
es
to
s leg
al en
v
ir
onm
ent
, a su
f
f
ic
ientl
y r
el
iabl
e e
st
imate
ca
nno
t be ma
de to c
ov
er th
e f
ull p
er
i
od o
ve
r w
hic
h it i
s exp
e
c
ted th
at co
st
s w
i
ll
be in
cur
r
e
d. In b
oth t
he
se c
a
s
es
, i
t w
as d
eter
mi
ned t
hat t
he as
s
umpt
ion
s f
air
l
y
ref
le
c
t th
e po
sit
ion
. S
ee n
ote 2
3 of t
he f
in
anc
ial s
t
ateme
nt
s.
PO
ST
-RE
T
IREMENT BENEFIT
S
Th
e Gr
o
up ha
s mater
i
al p
ens
ion p
l
an a
ss
et
s
and l
ia
bil
it
ie
s and t
her
e i
s a high d
eg
re
e of
es
timation uncer
taint
y.
Th
e C
ommi
t
te
e re
v
ie
w
ed t
he f
ina
nci
al r
epo
r
ting t
re
atm
ent fo
r the f
in
al T
I Gr
o
up
Pen
sio
n S
che
me (
TI
GP
S) bul
k an
nui
t
y b
u
y-
in. T
h
is bu
y
-i
n ha
s be
en s
ec
ur
ed w
i
th
a comm
it
ment to f
ul
ly bu
y
-
ou
t th
e Sc
he
me o
ver t
he n
ex
t fe
w y
ea
r
s so h
as b
ee
n
acco
unted f
or a
s a set
tleme
nt, w
i
th th
e r
es
ulti
ng s
et
tl
eme
nt lo
ss a
nd p
as
t s
er
v
ice
cos
t sh
ow
n i
n the G
r
oup’s income s
t
atem
ent in F
Y
2
0
2
2
. A su
r
plu
s r
es
tr
ict
ion h
as
be
en ap
pl
ie
d to the r
em
aini
ng S
ch
eme a
s
s
et
s to br
in
g th
e net su
r
plu
s to zer
o.
Th
e C
ommi
t
te
e has a
l
s
o r
ev
i
ew
ed a
nd a
gr
ee
d the m
eth
od
s, a
s
sum
pti
ons a
nd
ben
chm
ar
k
s us
e
d by t
he ac
t
uar
ies to c
alc
ul
ate th
e po
si
tio
n of th
e UK and U
S
sc
hem
es a
t 31 July 2
0
2
2
, w
hic
h ha
ve co
ntin
ue
d to sho
w a net a
cco
untin
g sur
plus
pos
it
ion w
h
ich h
as b
een r
e
duc
ed b
y £
219m in F
Y2
02
2
.
Th
e C
ommi
t
te
e agr
e
ed th
e tr
e
atme
nt and t
he co
r
r
es
po
ndi
ng di
sc
los
ur
e
s on th
es
e
mat
ter
s. S
ee n
ote 8 of th
e fi
nan
cia
l st
atem
ent
s
.
PRE
SENT
A
TI
ON OF HE
ADL
INE PR
OF
IT
S A
ND OR
GA
NIC GR
OW
T
H
Th
e Gr
o
up pr
e
se
nt
s he
adl
in
e pr
of
it
s a
nd or
g
ani
c
gr
ow
th me
as
ur
es w
h
ich r
e
quir
e a
djus
t
ment to
IF
R
S re
qui
re
d dat
a
. T
his i
s a mater
ial jud
gem
ent
and r
e
quir
e
s a co
nsi
ste
nt app
li
c
atio
n of th
e
Gr
oup’s account
ing p
ol
ic
y on this to
pic
.
Th
e C
ommi
t
te
e con
sid
er
e
d the p
ol
ic
y
, pr
e
se
ntat
ion a
nd ju
dg
eme
nt
s in r
el
ati
on
to the G
ro
up’
s pe
r
for
ma
nce, i
n pa
r
ticul
a
r the s
ep
ar
ation of h
ea
dl
ine a
nd n
on-
hea
dl
ine i
tem
s. T
h
is in
clu
de
d the c
on
sid
er
at
ion o
f w
hich i
tem
s re
l
ated to t
he
Gr
oup’s ongoi
ng tr
adin
g ac
ti
v
i
t
y o
r th
os
e w
hich s
ho
uld b
e r
ec
or
de
d as n
on
-
headline.
Th
e C
ommi
t
te
e re
v
ie
w
ed t
he ap
pr
op
r
iate le
v
el of di
sc
los
ur
e for t
he im
pa
ir
me
nt
cha
rg
e r
ec
ogn
is
ed in F
Y
2
0
2
2 a
ga
ins
t th
e Gr
ou
p’
s Rus
si
an bu
sin
es
s
e
s and r
el
a
ted
w
ind d
ow
n c
os
t
s
. Th
e C
ommi
t
te
e agr
e
ed th
at th
e com
bin
ed im
pa
ir
me
nt cha
r
ge
re
qui
re
d s
ep
ar
ate p
r
es
ent
ati
on a
s a non
-h
ea
dl
ine i
tem
.
In ad
dit
ion
, th
e Co
mmi
t
tee a
l
s
o con
si
der
e
d tho
se j
ud
gem
ent
s in c
onn
ec
ti
on
w
ith i
tem
s to be r
ef
le
c
ted or a
dju
ste
d in or
g
ani
c per
for
mance
. S
ee n
ote 3 of th
e
fi
nan
cial s
t
atem
ent
s
.
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
72
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Effec
ti
venes
s of the Group
’
s
r
isk management
and internal control
s
In F
Y
2
0
2
2, t
he C
omm
it
te
e, on b
eh
alf o
f the B
o
ar
d and w
i
th t
he
as
si
st
an
ce of th
e Inter
n
al A
udi
t f
unc
ti
on
, mo
nito
re
d, r
e
v
ie
we
d an
d
as
s
es
s
ed t
he ef
fec
ti
v
ene
s
s of t
he Gr
o
up’
s r
isk m
an
age
ment a
nd
inter
n
al cont
r
ol s
y
s
tem
s in the c
ontex
t of the Gr
o
up’
s st
r
ate
g
y,
business model and risk appetite.
De
ep
-
di
ve
s w
er
e c
ar
r
i
ed o
ut du
r
ing t
he y
ea
r on th
e fol
lo
w
ing
pr
in
cip
al r
i
sk
s
. T
he pr
incip
al r
i
sk
s ha
ve si
nce b
ee
n up
dated a
s
det
aile
d on p
ag
e 47
:
–
Pr
o
duc
t q
ual
it
y – John C
r
an
e, Sm
it
hs D
etec
ti
on an
d F
le
x-
T
ek
–
Cus
tom
er
s – S
mi
ths D
etec
t
ion a
nd S
mit
hs Inte
rc
onn
ec
t
–
Sup
ply c
hai
n – Joh
n Cr
an
e an
d F
lex-
T
ek
–
Contr
actual obligations
Consider
ation of the
r
isk register
s alongside the principal
risk deep
-di
ve
s and other thematic
r
isk areas enables the
Co
mmi
t
tee a
nd f
ul
l Bo
ar
d to un
der
sta
nd th
e cu
ltur
e, r
isk
s and
opp
or
tun
iti
es a
nd a
ss
ur
a
nce p
r
oce
s
s
es t
hr
ou
gho
ut t
he bu
sin
es
s
and t
he p
otentia
l imp
ac
t o
n the G
r
oup. N
o sig
nif
ic
a
nt fa
il
ing
s
or w
eak
ne
s
s
es w
er
e id
enti
f
ie
d.
Th
e C
ommi
t
te
e we
re a
l
s
o pr
o
v
ide
d w
it
h upd
ate
s in r
el
ati
on to th
e
Finance E
xcellence Pr
ogr
amme par
ticul
ar
ly in relation to projec
t
s
to impr
o
ve a
nd s
t
and
ar
dis
e f
in
ance a
c
ti
v
i
t
y a
cr
os
s th
e Gr
ou
p
and o
ngo
ing a
c
ti
v
i
t
y to im
pr
o
ve g
ene
r
al I
T c
ontr
ol
s. T
he
y al
so
mon
itor
e
d the p
otent
ial d
ev
elo
pm
ent of au
dit a
nd g
ov
er
n
anc
e
ref
or
m
s and h
ow t
he b
usi
ne
s
s might r
e
sp
on
d to cha
nge
s
in regul
ation
.
Prin
cipal ri
sks upd
ate
Th
e C
ommi
t
te
e c
ar
r
ie
d ou
t a r
obu
s
t as
s
es
s
ment of t
he p
r
inc
ip
al
r
isk
s f
ac
ing t
he G
ro
up, in
clu
din
g tho
se t
hat w
oul
d th
re
aten i
t
s
bus
ine
s
s mo
de
l
, fu
tur
e p
er
for
m
anc
e, so
lv
enc
y and l
iqui
di
t
y.
We hav
e r
efr
e
sh
ed t
he F
Y
2
0
2
2 pr
incip
al r
i
sk
s to r
efl
ec
t t
he cr
i
ti
ca
l
r
isk
s f
ac
ing t
he b
usi
ne
s
s and t
he fo
ll
ow
in
g ch
ang
es w
er
e m
ade:
–
Gr
ow
th an
d E
S
G ha
ve b
ee
n ad
de
d as pr
incip
al r
i
sk
s
–
Gr
oup p
or
t
fo
li
o r
isk h
as b
ee
n r
emo
ve
d w
it
h the c
omp
let
ion of
the s
al
e of Sm
ith
s Me
dic
a
l
–
A numb
er of r
i
sk
s
, inc
lud
ing C
O
V
ID
-
1
9 and Inte
gr
a
ted su
ppl
y
chai
n, h
av
e be
en co
mbi
ne
d into a Bus
ine
s
s co
ntinu
it
y ri
sk
–
Ethic
a
l br
ea
ch an
d Co
ntr
act
ual o
bl
ig
atio
ns h
av
e mer
g
ed into a
Legal and compliance r
isk
–
Cus
tom
er
s a
nd ma
r
ket
s r
is
ks h
av
e me
r
ge
d into a
Commer
cial risk
A de
sc
r
ipt
ion of t
he p
r
inc
ipa
l r
is
ks f
a
cin
g the G
r
oup a
nd ho
w th
e
se
wer
e r
e
v
ie
we
d to as
s
e
s
s the G
ro
up’
s v
iab
il
it
y can b
e fo
und o
n
pa
ge
s 47 to 5
3.
Ef
fe
c
ti
vene
s
s of th
e ex
ter
n
al au
dit
Th
e C
ommi
t
te
e cont
inua
lly a
s
s
es
s
ed t
he ef
fec
ti
v
ene
s
s of th
e
ex
ter
nal aud
itor d
ur
in
g th
e ye
ar
, inclu
din
g it
s in
dep
en
den
ce,
objec
tiv
it
y, appropr
iate m
indset and profes
sional scepticism.
The Commit
tee consider
ed:
–
the c
onc
lus
ion of t
he F
Y
2
0
21 au
di
t pr
oc
es
s
–
the r
e
v
ie
w of aud
it p
l
ans
–
content
, in
sig
ht and v
a
lue of K
PMG’s rep
or
t
s
–
ro
bu
st
ne
s
s and p
er
cep
ti
v
ene
s
s of K
P
MG i
n han
dl
ing of ke
y
acco
unti
ng an
d aud
it ju
dg
eme
nt
s
–
man
age
ment
’s res
po
ns
e
s to any a
udi
t fi
ndi
ngs
–
dis
cu
s
sio
ns w
i
th man
ag
eme
nt (b
oth w
i
th an
d w
it
ho
ut th
e
ex
ter
nal aud
itor p
r
es
ent
) and w
it
h the e
x
ter
n
al au
di
tor
(b
oth w
i
th an
d w
ith
ou
t man
ag
eme
nt pr
e
se
nt
)
–
the f
in
din
gs of th
e F
RC
’s 20
2
2 Au
di
t Qua
li
t
y Insp
ec
ti
on Rep
or
t
w
ith K
P
M
G to und
er
s
t
and t
he ac
t
i
v
it
ie
s bei
ng un
der
t
aken to
add
re
s
s th
e f
indi
ng
s and K
P
M
G’s posit
ion r
e
gar
d
ing t
he v
ar
ious
ar
ea
s of aud
it r
efo
r
m w
hic
h ar
e cur
rentl
y und
er r
ev
i
ew
A
s F
Y
2
0
2
2 w
a
s K
P
MG’s thir
d y
ear a
s th
e Gr
oup’s ex
ter
na
l aud
itor
,
the C
om
mit
te
e p
aid p
ar
tic
ul
ar at
tention to e
nsu
r
ing t
hat i
t w
as
s
atis
f
ie
d that t
he C
omm
it
te
e’
s and m
ana
ge
ment
’s feedb
ac
k fr
o
m
pr
ev
i
ous e
f
fe
c
ti
v
ene
s
s r
ev
i
ew
s h
ad b
ee
n ad
equ
ately a
ddr
e
s
s
ed.
Th
is in
clu
de
d the c
lo
se o
ut of p
r
ev
io
us
ly dis
c
us
s
ed au
di
t mat
ter
s.
In ad
dit
ion i
t al
so con
sid
er
e
d othe
r st
at
utor
y r
ep
or
tin
g, au
di
t
pl
an
ning a
nd s
co
pe de
li
v
er
able
s
, and t
hat K
P
M
G had c
onti
nue
d to
de
vote s
uf
fici
ent ti
me an
d re
s
our
ce
s to un
de
r
s
ta
nd an
d as
s
es
s t
he
bus
ine
s
s
, it
s ke
y r
isk
s a
nd co
ntr
ol
s.
Pr
i
or to th
e s
ale of S
mi
th
s Med
ic
al
, th
e Smi
th
s Me
dic
al b
usi
ne
s
s
conti
nue
d to be a
udi
ted b
y P
w
C. T
he C
om
mit
tee al
s
o con
si
der
e
d
the ef
fec
ti
v
en
es
s of t
he pr
o
ce
s
s w
her
e
by K
P
MG w
as able to
achi
ev
e co
mfor
t fr
o
m P
w
C on it
s w
o
r
k for t
hat di
v
i
sio
n in r
es
pe
c
t
of the F
Y
2
0
21 f
in
anc
ial s
t
atem
ent
s
.
Af
ter ta
kin
g into ac
cou
nt the f
a
c
tor
s ab
o
ve an
d it
s g
ene
r
al
inter
a
c
tio
n w
it
h K
P
MG th
ro
ugh
ou
t the p
er
i
od
, th
e Co
mmi
t
tee
w
as s
ati
s
fi
ed t
hat th
e aud
it w
a
s ef
f
ec
ti
v
e. T
h
e Co
mmi
t
tee
the
ref
or
e agr
e
ed t
hat i
t w
as ap
pr
op
r
iate to r
e
com
men
d to the
Bo
ar
d th
at the r
e
app
oi
ntme
nt of K
P
MG a
s the C
om
pan
y’s audi
tor
for a f
ur
the
r ye
ar b
e pr
op
os
ed to s
har
eh
ol
der
s at the 2
0
2
2 A
GM.
A fu
r
ther r
ev
i
ew o
f the F
Y
2
0
2
2 a
udi
t w
ill b
e co
ndu
c
ted a
hea
d
of the F
Y
2
0
2
3 half y
ea
r re
s
ult
s
.
Risk manag
ement and intern
al control
Th
e Bo
ar
d i
s r
es
pon
sib
le fo
r en
sur
i
ng th
at so
un
d r
isk
man
age
ment a
nd inte
r
nal c
ontr
o
l s
y
ste
ms ar
e in p
l
ac
e.
Th
e E
xe
cu
ti
v
e Co
mmi
t
tee i
s r
es
po
nsi
ble fo
r de
si
gnin
g the r
isk
man
age
ment a
nd inte
r
nal c
ontr
o
l s
y
ste
ms an
d en
sur
i
ng th
ey a
r
e
ef
fe
c
ti
v
ely d
epl
oy
ed t
hr
ou
gho
ut t
he Gr
o
up. T
h
e inter
n
al cont
r
ol
s
y
ste
m is a f
r
am
ew
or
k to mana
ge r
i
sk
s and m
oni
tor c
omp
li
ance
w
ith p
r
oce
dur
e
s
. It i
s de
sig
ne
d to mee
t the G
ro
up’
s p
ar
ticu
l
ar
nee
ds a
nd th
e r
is
k
s to w
hich i
t is e
xp
os
ed
. Ho
w
ev
er
, it c
an pr
o
v
ide
only r
e
as
on
abl
e, not a
bs
olu
te, a
ss
ur
a
nce a
gai
ns
t mate
r
ial l
os
s to
the G
ro
up or m
ater
i
al mis
s
t
atem
ent in th
e f
inan
cia
l s
tate
ment
s
.
Mor
e de
tai
l c
an be f
oun
d on p
ag
es 4
6 to 5
3.
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
73
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Ethic
s and
compliance
Dur
i
ng th
e ye
ar
, the C
ommi
t
te
e re
v
ie
w
ed t
he Eth
ic
s an
d
Complian
ce annual work pr
ogr
amme and pr
ov
ided over
sight of
inves
tigations in
to allegations of
non-compl
iance with the Code of
Busi
ne
s
s Ethi
c
s
. T
his in
clu
de
d mat
te
r
s r
a
is
ed t
hr
oug
h the G
r
oup’s
ethic
s rep
or
tin
g pr
oc
edu
re
s in
clu
din
g the G
r
oup’s ‘Spe
ak- Out’
hotl
in
e w
hic
h all
ow
s f
or an
on
ym
ou
s r
epo
r
ting
. Smi
th
s ‘Sp
e
ak
Ou
t’ ho
tl
ine co
mp
r
is
e
s a numb
er of d
if
f
er
ent ch
ann
el
s (inc
lud
ing
ca
ll ce
ntr
e
s op
er
ate
d by a
n ind
ep
end
ent th
ir
d p
ar
t
y ac
r
os
s th
e
Gr
oup’s globa
l op
er
at
ion
s
) for em
pl
oy
ee
s an
d othe
r s
ta
kehol
de
r
s
to repor
t concer
ns
.
Dur
i
ng th
e ye
ar th
er
e w
er
e no m
at
ter
s r
ais
ed th
at r
equ
ir
ed
the Committee’
s direct inter
vention or investigations which
re
su
lted i
n a mater
ial los
s to th
e Gr
ou
p or a de
tr
im
ent
al imp
ac
t
on our c
us
tom
er
s o
r sup
pl
ier
s. T
he C
om
mit
te
e r
ec
ei
ve
s r
eg
ul
ar
re
po
r
ts on t
he tot
al nu
mbe
r and n
atu
re of c
a
s
es b
y r
egi
on
, the
r
ati
o of an
ony
m
ou
s v
s at
tr
ib
ute
d eth
ic
s r
ep
or
ts
, a
nd th
e r
at
io
of sub
st
ant
iate
d vs u
ns
ubs
t
antia
ted c
as
e
s
. T
he an
ony
m
ou
s
vs a
t
tr
ib
ute
d met
r
ic is u
s
ed to mo
ni
tor tr
u
s
t in th
e Gr
oup’s
repor
ting sy
stem. Accordingly, the Committee considere
d that
the G
ro
up’
s pr
o
ce
s
se
s an
d ar
r
angem
ent
s fo
r emp
lo
ye
e
s to re
po
r
t
concer
ns, including anony
mou
sly and withou
t retal
iation, about
any im
pr
op
r
iet
ie
s and t
he ar
ra
ng
eme
nt
s for an
y sub
s
equ
ent
inv
es
t
igat
ion a
s ne
ce
s
s
ar
y, wer
e bot
h app
r
opr
i
ate an
d ef
fe
c
ti
v
e.
Dur
i
ng th
e ye
ar
, the C
ommi
t
te
e pr
o
vi
de
d ov
er
sight of a num
be
r
of ar
ea
s ta
r
gete
d by t
he Eth
ic
s an
d Co
mpl
ia
nce w
or
k pro
gr
a
mme
.
Mor
e inf
or
ma
tio
n on th
e Gr
oup’s appr
oa
ch to Et
hic
s an
d
Co
mpl
ian
ce c
an b
e fou
nd on p
a
ge 3
4 a
nd in t
he S
us
t
aina
bil
it
y at
Smi
th
s re
po
r
t found o
n our w
eb
site
.
A
s
s
es
sment of intern
al control and
r
isk managem
ent ar
r
angement
s
Th
e C
ommi
t
te
e w
as s
at
is
fi
ed t
hat th
e Gr
ou
p’
s pr
oce
s
s
e
s
go
ver
ning f
ina
nci
al r
epo
r
ting a
nd co
ntr
ol
s, it
s c
ult
ur
e, eth
ic
al
st
an
dar
d
s and i
t
s r
el
ati
on
ship
s w
it
h st
akeh
ol
de
r
s cont
inu
ed
to
be effective.
Th
e C
ommi
t
te
e w
as al
so s
ati
sf
i
ed w
i
th th
e app
ro
pr
i
atene
s
s
and a
de
qua
c
y of t
he Gr
o
up’
s r
isk m
ana
ge
ment a
r
r
a
nge
ment
s
,
inter
n
al cont
r
ol f
r
am
ew
o
r
k and t
hr
ee l
in
es o
f defe
nce m
od
el
.
Int
ernal Audit
Inter
na
l Au
di
t is in
dep
en
dent of t
he b
usin
e
s
s and s
o ha
s no
resp
onsibilit
y for
oper
ational busines
s management. This ensur
es
the inte
gr
i
t
y a
nd o
bje
c
ti
v
i
t
y of i
t
s ann
ual A
ud
it P
l
an
, w
hic
h is
app
ro
v
ed b
y the C
om
mi
t
tee
. T
he au
th
or
i
t
y of t
he Inter
nal Au
dit
fu
nc
ti
on is d
er
i
v
ed f
r
om th
e Co
mmi
t
te
e. T
he D
ir
ec
to
r of Inter
n
al
Au
dit i
s acc
ount
ab
le to th
e Bo
ar
d th
ro
ugh t
he C
omm
it
te
e
Chai
r
man
, alt
ho
ugh a
dmin
is
tr
ativ
ely t
he D
ir
ec
tor o
f Inter
n
al Au
di
t
re
po
r
ts to th
e Chie
f F
inan
cia
l O
f
f
ice
r
.
In or
de
r to c
ar
r
y ou
t the r
e
sp
on
sib
ili
ti
es
, a
s set o
ut in a c
har
ter
app
ro
v
ed b
y the C
om
mi
t
tee, t
he Inte
r
nal A
ud
it f
un
c
tio
n has:
–
fu
ll an
d unr
e
s
tr
ic
te
d acc
es
s to a
ll r
ec
or
ds
, p
ro
pe
r
t
y
and per
sonnel;
–
ind
epe
nd
ent acc
es
s to t
he C
omm
it
te
e Cha
ir
ma
n and m
emb
er
s
of the C
om
mit
tee;
–
the r
i
ght to r
eq
ue
st m
ee
tin
gs w
it
h the C
om
mit
tee; and
–
the a
uth
or
i
t
y a
nd o
bl
igat
ion to r
e
por
t si
gnif
i
ca
nt f
indi
ng
s
or oth
er co
nce
r
ns to t
he C
ommi
t
te
e.
During t
he period, t
he Comm
ittee received
progress repor
t
s
on th
e exec
ut
ion o
f the F
Y
2
0
2
2 Inte
r
na
l Au
dit P
l
an a
nd di
sc
us
s
ed
any hi
gh pr
ior
it
y contr
o
l enh
anc
eme
nt opp
or
tun
iti
es a
nd
ac
ti
on pl
a
ns to a
ddr
e
s
s the
s
e. T
h
e Co
mmi
t
tee a
l
s
o app
r
ov
ed
the F
Y
2
0
2
3 Inter
nal A
ud
it P
l
an
, inc
lud
ing t
he pr
o
po
se
d au
dit
sc
ope
, app
r
oa
ch, c
ov
er
age an
d bu
dge
t incl
udi
ng th
e al
loc
at
ion
of
resourc
es.
Th
e C
ommi
t
te
e ov
er
s
e
es t
he p
er
for
ma
nce o
f the Inte
r
nal
Au
dit f
un
c
tio
n thr
o
ugh th
e Dir
e
c
tor of Inte
r
na
l Au
dit
’s
at
ten
danc
e at Co
mmi
t
te
e me
etin
gs
, r
ev
i
ew of w
or
k pre
s
ented
thr
ou
gho
ut t
he co
ur
s
e of th
e ye
ar
, and a r
ev
i
ew of a
gr
e
ed
K
PI
s w
hic
h ar
e r
epo
r
ted to the C
om
mi
t
tee at e
ac
h Co
mmi
t
tee
mee
tin
g. T
he C
om
mit
tee al
s
o co
nsi
der
e
d the r
e
su
lt
s of an
ano
ny
mo
us s
ur
ve
y cir
c
ul
ated to t
he A
udi
t & Ri
sk C
omm
it
te
e,
se
nior m
an
age
ment a
nd th
e Gr
o
up’
s ex
ter
nal aud
itor o
n th
e
per
for
mance of t
he f
unc
t
ion d
ur
in
g th
e ye
ar
. Ov
er
all
, Inter
n
al
Au
dit i
s se
en a
s a v
alu
ed a
s
sur
ance f
unc
t
ion t
hr
ou
gho
ut
the G
ro
up. I
t is a
ppr
o
pr
iate
ly r
e
so
urc
ed a
nd co
nfor
m
s w
it
h
industr
y standards in its approach.
In acc
or
dan
ce w
i
th th
e Inter
n
atio
nal S
ta
nda
r
ds fo
r the
Pr
ofe
s
si
ona
l Pr
ac
tic
e of Inter
n
al A
udi
tin
g, th
e as
s
e
s
sme
nt
of the I
nter
na
l Au
dit f
un
c
tio
n is r
eq
uir
e
d to be c
ar
r
ied ou
t by
an ind
ep
end
ent th
ir
d p
ar
t
y at le
as
t e
ve
r
y fi
v
e ye
ar
s
. T
h
e l
as
t
ind
epe
nd
ent thi
r
d-
pa
r
t
y as
s
es
s
ment w
a
s c
ar
r
i
ed o
ut in 2
018.
Th
e ne
x
t in
dep
en
dent t
hir
d
-p
ar
t
y a
s
se
s
sm
ent w
il
l ta
ke pl
ace
dur
ing F
Y2
0
2
3.
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
74
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Our objecti
ves are to create clear alignment between
remuneration and sust
ainable, long-term s
takeholder
interest
s. We tak
e account of
shareholder v
iews and ensure
that p
er
for
ma
nce sup
po
r
t
s t
he del
i
ver
y of bu
sin
es
s s
tr
ate
g
y
through targeting our key
per
formance indicators (K
PIs).
Chair
man’
s s
t
atement
I am pl
ea
se
d to pr
e
se
nt the Re
mune
r
at
ion Re
por
t fo
r the y
ea
r
to 31 July 2
0
2
2
. T
hi
s w
ill b
e my fo
ur
th ye
ar a
s Chai
r
ma
n of the
Co
mmi
t
tee
. In thi
s tim
e we h
av
e ad
apte
d our P
ol
ic
y to a
li
gn
w
ith s
t
akeh
old
er e
xp
ec
t
ati
ons a
nd gu
ide
li
ne
s w
hil
st en
sur
i
ng
it su
pp
or
ts b
us
ine
s
s s
tr
ate
g
y. We hav
e al
s
o b
een m
ind
f
ul of
unprecedented sociopolitical pres
sures
.
Th
e Di
re
c
tor
s’ Remun
er
ation P
ol
ic
y w
a
s ap
pr
ov
e
d at the A
GM
on 1
7 No
ve
mbe
r 2
0
21. The Di
re
c
tor
s
’ Remun
er
ation Rep
or
t for
F
Y
2
0
2
2 w
ill b
e pu
t to an ad
v
i
s
or
y sha
re
ho
ld
er vote a
t the 2
0
2
2
AGM o
n 16 Novem
be
r 2
0
2
2. I l
oo
k for
w
a
r
d to you
r cont
inu
ed
sup
por
t at th
e upc
omi
ng A
GM.
Remuner
ation
& Pe
ople C
ommi
t
tee
Dur
i
ng F
Y
2
0
2
2 w
e too
k the i
mpo
r
tant s
tep of e
xp
an
din
g the
re
sp
on
sib
il
iti
es o
f the C
om
mit
te
e to inc
lu
de o
ver
see
ing t
he
impl
eme
nta
tio
n of the P
eo
ple s
tr
ateg
y an
d, a
s nec
e
ss
a
r
y, make
re
co
mme
ndat
ion
s to th
e Bo
ar
d r
eg
ar
din
g ch
ang
e
s to or ap
pr
ov
a
l
of the s
tr
ateg
y.
Th
e br
o
ad
er Remu
ner
ation & P
eo
ple C
om
mit
tee no
w ov
er
s
e
es
the p
ro
ce
s
s for t
he G
ro
up’
s t
alent s
t
r
ate
g
y and t
he de
v
elo
pme
nt
of a di
ve
r
s
e pip
el
ine o
f succ
es
s
ion b
el
ow s
en
ior m
ana
gem
ent
.
Resp
on
sib
il
it
y ex
ten
ds to th
e Gr
ou
p’
s di
ver
sit
y
, equ
it
y and in
clu
sio
n
st
r
ate
g
y and a
ppr
o
ac
h to wo
r
k
for
ce en
ga
gem
ent in
clu
din
g
re
v
ie
w
in
g the r
e
sul
t
s of th
e emp
lo
ye
e eng
ag
eme
nt sur
v
ey a
nd th
e
re
l
ated a
c
tio
n pl
an
s
.
Th
er
e is a p
r
ogr
amme of B
o
ar
d en
gag
em
ent ac
ti
v
i
ti
es to e
nab
le
the N
on-
E
xe
cu
ti
v
e Dir
e
c
tor
s to h
av
e re
gul
ar dialo
gu
e w
ith
col
le
agu
e
s acr
os
s t
he Gr
o
up to info
r
m th
eir v
ie
w of em
pl
oy
ee
eng
ag
eme
nt and e
nsu
re w
el
l-b
ein
g po
li
cie
s an
d pr
og
r
am
me
s
are ef
fective.
Th
e C
ommi
t
te
e re
mai
ns r
e
spo
ns
ibl
e for th
e Gr
ou
p’
s ov
er
a
ll
remuner
ation str
ateg
y
, over
se
eing the Group’
s
Remuneration
Pol
ic
y for Dir
e
c
tor
s a
nd s
eni
or ma
na
gem
ent
. T
he C
omm
it
te
e
se
ek
s to ac
hie
ve a s
tr
ateg
y th
at at
tr
act
s, mot
i
v
ates a
nd r
et
ain
s
exec
ut
i
ve m
ana
gem
ent of t
he qu
al
it
y req
uir
e
d to r
un th
e Gr
ou
p
succ
es
s
f
ul
ly. Th
e st
r
ate
g
y pr
om
otes t
he l
ong
-ter
m s
ucc
es
s of
Smi
th
s, w
h
ile r
ef
le
c
tin
g the v
i
ew
s of a
ll s
t
akeho
ld
er
s
.
Busines
s context for
F
Y
20
2
2
We hav
e ma
de g
oo
d pr
og
re
s
s th
is y
ear w
i
th a r
en
ew
e
d foc
us
on tec
hno
lo
g
y and n
e
w pr
od
uc
t de
v
elo
pme
nt. F
ol
lo
w
ing t
he
succ
es
s
f
ul s
al
e of Smi
th
s Me
dic
al
, w
e ha
ve a
n amb
iti
ou
s gr
ow
th
st
r
ate
g
y w
hic
h wi
ll am
pl
if
y Sm
ith
s po
s
t the M
edi
c
al s
ale
. Ou
r
Remun
er
at
ion P
ol
ic
y is st
ro
ngl
y al
ign
ed to th
e pr
i
or
i
tie
s in t
he
Smi
th
s Valu
e En
gine a
nd o
ur A
IP an
d LTIP met
r
ic
s fo
r F
Y
2
0
2
3
out
li
ne
d l
ater in t
his s
t
ateme
nt ar
e de
si
gne
d to sup
po
r
t this
.
We hav
e not b
e
en imm
une to t
he ma
cr
oe
co
nom
ic ch
al
len
ge
s
incl
udi
ng th
e CO
V
ID-
1
9 pan
dem
ic
, but w
e h
av
e sho
w
n r
e
sil
ien
ce
in the f
a
ce of th
e
se c
hal
len
ge
s an
d cont
inu
e to be a
gile to m
aint
ain
the p
er
for
m
anc
e of the b
us
ine
s
s and s
upp
or
t our p
e
opl
e and
comm
uni
tie
s
. Or
g
anic r
e
ve
nue g
ro
w
th ha
s be
en ah
ea
d of
expectations
and
we have d
elivered five consecutive q
uar
ters
of gr
ow
th
. Th
is h
as b
een s
upp
or
ted b
y s
tr
on
ger e
xec
uti
on an
d
oper
ational resil
ience. Inspiring and empow
ering our people has
be
en an im
po
r
tant el
eme
nt of bui
ldi
ng th
is mo
ment
um
.
Sharehol
der consult
ation
We ar
e con
sc
io
us of th
e com
pet
iti
v
e gl
ob
al en
v
ir
onm
ent fo
r
exec
ut
i
ve t
ale
nt. D
ur
i
ng th
e ye
ar
, we r
ea
che
d ou
t to maj
or
shar
e
hol
de
r
s to dis
c
us
s th
eir v
ie
w
s on t
he int
ro
du
c
tio
n of an
add
iti
on
al sh
ar
e pl
an d
e
sign
ed to r
e
w
ar
d su
pe
r
ior p
er
for
m
anc
e
ov
er a f
i
ve
-
ye
ar p
er
io
d, i
n li
ne w
it
h the s
t
r
ate
g
y ann
oun
ced at
the C
ap
it
al Ma
r
ket
s Ev
ent in N
ov
emb
er 2
0
21. Fee
dba
ck f
r
om
shareholder
s w
as that they were s
ymp
athetic to
this objecti
ve
but p
r
efer
r
e
d the s
imp
li
cit
y of del
i
v
er
y w
it
hin th
e pa
r
am
eter
s o
f
the c
ur
r
ent Rem
une
r
ati
on P
ol
ic
y. We we
re d
el
ighte
d to ha
ve t
he
opp
or
tun
it
y to tal
k and w
o
uld l
ike to th
ank sh
ar
eh
ol
der
s for the
feedback prov
ided.
Boar
d chan
ges
In A
pr
i
l 2
0
2
2 we a
nno
unc
ed th
e ap
poi
ntme
nt of Cl
ar
e S
ch
er
r
er a
s
Chief F
i
nan
cial O
f
fic
er
, alon
gsi
de a num
be
r of exe
cu
ti
ve l
ea
der
ship
app
oint
ment
s
, co
ntin
uin
g the g
oo
d pr
og
r
es
s m
ade o
v
er r
ece
nt
ye
ar
s in p
os
iti
oni
ng th
e Co
mp
any f
or th
e f
utu
re
. Cl
ar
e w
a
s
app
ointe
d on a s
al
a
r
y of £
5
5
3
,75
0, w
hi
ch w
il
l be n
ex
t r
e
v
ie
we
d
in Oc
to
ber 2
02
3
, an
d a pen
si
on al
lo
w
anc
e in l
ine w
i
th th
e r
ate
av
ail
able to th
e w
ide
r UK w
or
k
fo
rc
e. He
r ince
nti
v
e ar
r
a
ng
eme
nt
s
and b
en
efi
t
s enti
tl
eme
nt ar
e in l
ine w
i
th th
e Remun
er
ation P
ol
ic
y.
A summ
ar
y of th
e r
emun
er
ation fo
r the o
utg
oin
g Chie
f F
inan
cia
l
Of
fi
cer is p
r
ov
i
de
d on p
age 8
3.
Implementation for
F
Y2
0
2
3
Th
e Bo
ar
d i
s con
s
cio
us of th
e ch
all
en
ging i
mp
ac
t of c
ur
r
ent
infl
ationa
r
y pr
e
ss
ur
e
s on ou
r col
le
agu
e
s and t
his i
s ref
le
c
ted i
n the
man
age
ment d
ec
isi
on to fo
cu
s mo
re o
f the s
al
ar
y incr
ea
se b
ud
get
on th
os
e se
c
tor
s of the wo
r
k
for
ce w
h
ich a
re m
or
e si
gni
fi
c
antly
af
fe
c
ted
. P
aul K
ee
l
’s sal
a
r
y has b
ee
n inc
re
as
e
d by 2
.
5% a
nd is
ef
fe
c
ti
v
e fr
o
m 1 Oc
tob
er 2
0
2
2
. T
h
e incr
e
as
e is i
n lin
e w
it
h se
nio
r
man
age
ment a
nd i
s bel
ow t
he in
cr
em
ent fo
r the w
i
der w
or
k
f
or
ce.
Cl
ar
e S
ch
er
r
er
’s sal
ar
y w
il
l r
ema
in unc
han
ge
d for F
Y
2
02
3
.
We conti
nue to a
s
se
s
s an
d ev
ol
ve h
ow o
ur su
st
ai
nab
ili
t
y str
ateg
y
sho
uld b
e r
ef
lec
te
d w
it
hin o
ur r
emun
er
a
tio
n fr
amew
o
r
k
.
Fol
lo
w
in
g ca
re
fu
l con
sid
er
ation b
y the C
om
mit
tee, we w
i
ll b
e
intr
od
uci
ng ne
w ob
je
c
ti
v
es w
i
thi
n the A
n
nua
l Ince
nti
v
e Pl
a
n (
A
IP)
for F
Y
2
0
2
3, ali
gne
d to ou
r st
r
ate
g
y and t
he co
mmi
tme
nt
s ma
de at
the N
ov
emb
er 2
0
21 C
ap
it
al Ma
r
ket
s ev
ent
.
RE
MUNE
R
A
T
IO
N
& PE
O
PLE
C
O
MMI
T
T
E
E
REP
OR
T
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
75
For t
he F
Y
2
0
2
3 A
IP
, w
e w
il
l intr
o
duce t
wo n
ew p
er
for
m
anc
e
metr
ics b
a
se
d on r
ed
uc
ti
on
s in en
er
g
y us
a
ge ac
r
os
s th
e bus
ine
s
s
and r
e
ve
nue f
r
om ne
w p
ro
du
c
t pr
og
r
am
me
s
, incl
udi
ng ou
r
sus
t
ain
abl
e pr
od
uc
t
s
. T
he n
ew m
ea
sur
e
s w
ill e
ac
h ha
ve a
wei
ghti
ng of 10%
. T
hi
s buil
ds o
n the q
uant
if
iab
le an
d me
as
ur
a
ble
Sc
op
e 1 and 2 G
r
een
ho
us
e ga
s re
duc
t
ion m
etr
i
c
s inc
or
p
or
ated
in our L
on
g-
T
er
m Ince
nti
ve P
l
a
n (LTIP
), dr
i
v
in
g ach
ie
vem
ent
of our c
ommi
tm
ent to Net Ze
r
o emi
ss
ion
s f
ro
m op
er
a
tio
ns b
y
2
0
4
0
. T
he
re w
i
ll n
o lon
ger b
e a pe
r
s
ona
l obj
ec
t
i
ve
s met
r
ic in A
IP
,
re
infor
ci
ng th
e fo
cus o
n tea
m per
for
mance
.
Oth
er ac
tiv
itie
s of
the C
ommit
tee in F
Y
2
0
2
2
In ad
dit
ion to t
hos
e hi
ghl
ig
hted el
se
w
her
e in t
his s
t
ateme
nt, t
he
Co
mmi
t
tee h
as al
so un
der
ta
ken th
e fol
lo
w
ing a
c
ti
v
i
tie
s in F
Y
2
0
2
2
–
Rev
ie
w
ed b
usi
ne
s
s pl
an
s an
d per
for
mance to a
s
se
s
s th
eir
potent
ial im
pa
c
t on e
xis
t
ing an
d f
ut
ur
e ince
nti
v
e ar
r
angem
ent
s
–
Rev
ie
w
ed r
em
une
r
ati
on of t
he w
id
er w
or
k
fo
rc
e and r
el
a
ted
pol
ic
ie
s to en
sur
e inter
nal al
ign
ment of r
e
w
ar
d
–
A
pp
ro
v
ed F
Y
2
0
2
3 sal
a
r
y incr
e
as
e
s for th
e E
xe
cu
ti
v
e Co
mmi
t
tee
considering av
ailable budget, indiv
idual per
for
mance rating and
pos
it
ion i
n sa
l
ar
y r
a
ng
e
–
Rev
ie
w
ed t
he C
ommi
t
te
e’
s per
for
mance an
d T
er
ms of Ref
er
enc
e
–
A
pp
ro
v
ed th
e Remun
er
ation Rep
or
t for i
ncl
usi
on in th
e
Annu
al Repor
t
–
A
pp
ro
v
ed th
e se
r
v
ice co
ntr
act
s o
f the E
xecu
ti
ve D
ir
ec
to
r
s
Commi
t
tee m
ember
ship
and
meeting
s
Th
e me
mbe
r
sh
ip of th
e Co
mmi
t
tee a
nd th
eir m
eet
ing at
tendan
ce
dur
in
g th
e ye
ar is s
et ou
t on p
ag
e
s 5
8
, 59 an
d 6
0 of thi
s r
epo
r
t.
I had s
er
v
ed o
n a re
mun
er
a
tio
n com
mit
te
e fo
r at lea
s
t 1
2 mo
nths
pr
io
r to my ap
po
intm
ent as Re
mun
er
at
ion C
om
mit
tee Chai
r
man
.
Sir G
eo
r
ge Bu
ckle
y is a
bs
ent w
he
n his o
w
n r
emu
ner
ation a
s
Chai
r
man o
f the B
oa
r
d is un
der c
on
sid
er
at
ion
.
Th
e Chi
ef E
xe
cu
ti
ve a
t
tend
s me
etin
gs of t
he C
omm
it
te
e by
inv
i
tat
ion b
ut h
e is n
ot inv
ol
ve
d in th
e deter
minati
on of hi
s ow
n
re
mun
er
at
ion
, or p
re
s
ent d
ur
in
g con
sid
er
ation of an
y ch
ang
e
s
to it
.
Commit
tee per
for
mance ev
aluation
Th
e ann
ual e
v
al
uati
on of th
e Co
mmi
t
te
e w
as co
nd
uc
ted a
s pa
r
t
of the i
nter
na
lly f
a
cil
it
ate
d ev
a
luat
ion p
r
oce
s
s of th
e Bo
ar
d a
nd
it
s C
omm
it
te
e
s. T
h
e fi
ndi
ngs r
el
ating to th
e Co
mmi
t
tee w
er
e
dis
cu
s
se
d w
it
h me. M
or
e info
r
mat
ion c
a
n be fo
und o
n pa
ge 6
4.
O
v
er
a
ll
, th
e Co
mmi
t
te
e is v
ie
w
ed a
s ef
fe
c
ti
v
e and p
er
for
m
ing w
el
l
and i
s r
ig
or
ou
s in dis
ch
ar
gin
g it
s r
e
sp
on
sib
ili
ti
es
.
Th
er
e w
er
e thr
e
e sc
he
dul
ed C
omm
it
te
e me
etin
gs h
eld d
ur
in
g the
ye
ar an
d one s
pe
cia
l me
etin
g.
Look
ing for
w
ar
d
Th
e C
ommi
t
te
e w
ill c
onti
nue i
t
s foc
us o
n all s
t
akeh
ol
der g
ro
ups
and t
he w
id
er w
or
k
fo
rc
e w
hen d
is
cus
s
ing e
xec
uti
v
e p
ay s
tr
ateg
y.
It w
il
l al
s
o co
ns
ide
r the b
r
oa
der i
mp
ac
t of n
on-
fi
nan
cia
l mea
su
re
s
suc
h as S
mit
hs L
ea
der
ship Be
ha
v
iou
r
s an
d ho
w the
s
e sh
oul
d be
ref
le
c
ted i
n re
mun
er
a
tio
n dec
is
ion
s. I
n pa
r
ticul
a
r the C
om
mit
tee
w
ill s
ee
k to as
s
e
ss h
o
w the m
acr
o
ec
ono
mic e
nv
ir
on
ment i
s
imp
ac
ti
ng th
e mar
ket for glob
al t
al
ent an
d the s
e
ar
ch fo
r tal
ent
w
ill c
ontin
ue to b
e a pr
i
or
i
t
y a
s we g
ro
w.
Bill Seeger
CH
A
IR
M
A
N O
F T
HE RE
MUNE
R
A
T
ION & P
EO
PL
E C
OM
MI
T
TE
E
REMUNER
A
TION & PE
OPLE COMMIT
TEE REPORT
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
76
Base s
alar
y
Paul Keel received:
£875,000
Clare Scherrer received:
£140,567
John Shipsey (former CFO) received:
£551,496
Pension and
benefi
t
s
–
Pen
si
on
s con
tr
ib
ut
io
ns of 12% o
f ba
s
e s
al
ar
y f
or P
au
l Ke
el
and C
l
ar
e S
ch
er
r
e
r
, in lin
e w
it
h th
e r
ate a
v
ail
a
bl
e to th
e w
ide
r
UK w
or
k
fo
r
ce. J
oh
n Shi
ps
e
y re
ce
i
ve
d co
ntr
i
bu
tio
ns o
f 2
0.
5%
–
Benefi
ts include
d healthcar
e, insur
ance, car benef
it and
re
lo
c
ati
on b
en
efi
t
s fo
r th
e CEO.
A
nnual b
onus (
A
IP)
Long term ince
ntive (L
T
IP)
Total bonus payout (% of maximum):
Paul Keel:
38.8%
Clare Scherrer:
38.8%
John Shipsey:
37.8%
Total vesting (% of maximum):
Paul Keel:
N/A
Clare Scherrer:
N/A
John Shipsey:
14.1%
Threshold
(25% payout)
Maximum
(100% payout)
Achievement
Operating profit
(40%)
Organic revenue
growth (30%)
H1 (10%)
Headline operating cash conversion (20%)
FY (10%)
Personal objectives
(10%)*
£459m
£2,784m
90%
95%
0%
£502m
£2,926m
110%
115%
10%
£2,832m
£464m
3.2%
93%
13.8%
12.8%
0.0%
9.0%
9%
81%
Paul Keel
Clare Scherrer
John
Shipsey
Salar
y
875
141
5
51
Pension and
benefits
279
24
13
9
Annual bonus
67
8
91
344
Long term inc
entives
-
-
223
Paul Keel
Clare Scherrer
John Shipsey
£1,832
£256
£1,257
Salary
Pension and benefits
Annual bonus
Long term incentives
£2,000
£1,000
£500
£1,500
£0
IM
PLEMENT
A
T
ION OF R
EMU
NER
A
T
ION POLICY IN F
Y20
22
SING
LE
FIGURE (£0
0
0)
Threshold
(25% payout)
Maximum
(100% payout)
Vesting
Organic revenue
growth (30%)
Group EPS growth
after tax (25%)
Average ROCE
(20%)
Average headline
operating cash
conversion (25%)
90%
15% p.a.
4% p.a.
3%
105%
18% p.a.
11% p.a.
6%
1.8%
0.6%
13.7%
96%
0%
Total
14.1%
0%
0%
14.1%
* Pe
r
s
on
a
l ob
je
c
t
i
v
e
s ou
t
t
ur
n f
o
r Jo
hn S
h
ip
s
e
y w
as 8
% o
f m
ax
i
mu
m
E
X
EC
U
TI
V
E R
EM
UN
ER
A
TIO
N AT A GL
A
N
CE
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
77
Base s
alar
y
Paul Keel:
£896,875
(2.5% increase)
Clare Scherrer:
£553,750
(0% increase)
UK wider workforce increases of 3.0%.
A
nnual b
onus (
max
imum opp
or
tunit
y)
Long t
erm incent
ive
s (L
T
IP)
Pension Ben
efit
s
Paul Keel:
12%
of base salary
Clare Scherrer:
12%
of base salary
Benefit
s packag
e consisting of
healthc
are, insur
ance, car ben
efit
and relocation benefit
s.
Benefit
s packag
e consisting
of healthcar
e, insur
ance and
car allo
wance
.
Paul Keel:
200%
of base salary
Clare Scherrer:
165%
of base salary
Perfor
mance measure
Weighting
Operating Profit
30%
Reve
nue
30%
He
a
dl
i
ne O
p
er
ati
ng C
a
sh C
o
n
ve
r
s
io
n
20%
New Product Commercialisation
10
%
Energ
y Efficienc
y
10
%
–
3
3
% of an
nu
al b
onu
s def
er
r
e
d into sh
ar
e
s fo
r thr
e
e ye
ar
s.
–
Specif
ic targ
ets are consider
ed to be commercially sensiti
ve
and will
be di
sclosed retros
pecti
vely
.
Paul Keel:
189,900
number of shares
Clare Scherrer:
91,342
number of shares
Perfor
mance measure
(3 year)
Weighting
Threshold
(25% v
esting)
Maximum
(full
vesti
ng)
EP
S gr
ow
th af
ter t
a
x
20%
6%
11%
Revenue grow
th
30%
3.5
%
6.5%
Fr
e
e c
as
h
-f
l
ow
20%
45%
55%
Av
e
r
a
ge R
O
CE
15
%
14%
17
%
Reduction in
GHG
15
%
15
%
2
0%
–
T
w
o-
y
ea
r po
s
t-ve
s
ti
ng h
ol
din
g pe
r
io
d ap
pl
ie
s
.
–
T
he s
am
e f
ixe
d num
be
r of sh
ar
e
s as i
n 2
0
21 w
il
l be g
r
an
ted to
Pa
ul K
ee
l in Oc
tober 2
02
2 , p
er th
e Po
li
c
y.
–
Cl
ar
e S
c
her
rer
’s aw
ar
d w
il
l be i
n l
ine w
i
th h
er co
ntr
ac
t of
emp
lo
y
me
nt (
v
alu
e of 2
5
0
% of s
a
l
ar
y
).
Shar
ehol
ding r
equir
ement
s
–
E
xe
cu
ti
v
e Dir
e
c
tor
s shou
ld b
uil
d a mi
nimu
m sh
ar
eh
ol
din
g eq
ui
v
al
ent to t
he a
nnu
al f
ixe
d nu
mb
er of s
har
e
s a
w
ar
d
ed un
de
r th
e LTIP
w
ith
in f
i
v
e ye
ar
s a
nd a
re r
e
qui
r
ed to h
ol
d sh
ar
e
s eq
ui
v
al
ent to t
hei
r fu
ll i
n-
e
mpl
oy
m
ent s
ha
re
ho
ld
ing g
ui
del
in
e, o
r ac
t
ual h
ol
din
g if
lo
we
r
, for t
w
o y
ea
r
s p
os
t-e
mpl
o
y
men
t.
ST
A
TEMENT OF I
MPLEM
ENT
A
T
ION OF R
EMU
NER
A
TIO
N P
OLICY I
N F
Y
20
2
3
PERFO
RM
A
NCE M
E
A
SURES A
ND LIN
K TO ST
R
A
T
EG
Y
Annual bonus (AIP)
GROW
TH
EX
ECU
TION
PEOPLE
1
2
3
4
5
1
2
3
4
1
2
3
4
5
OPER
ATING
PROFIT
RE
VENUE GROW
TH
OPER
ATING
CA
SH CONVER
SION
NEW PRODUCT COMMERCIA
LISATION
ENERGY EFFICIENCY
Long T
erm Inc
entive Plan (L
TIP)
EP
S G
R
OW
TH A
FT
E
R TA
X
RE
VENUE GROW
TH
FREE
CA
SH-FLOW
AVERAGE ROCE
REDUCTION IN G
HG EMISSIONS
GROW
TH
1.
Strong execution
to
maximis
e underlyin
g
market expansion
2.
Improve
d pro
duct
development
and commercialisation
3.
B
ui
l
di
ng o
u
t
prior
ity adjacencies
4. Disciplined M&A
5. Sustainable
Smiths
EX
ECU
TION
1.
Operational
2. Financial
3. Functional
4. Sustainable Smiths
PEOPLE
1. Sa
fe
t
y a
n
d we
l
l
be
in
g
2.
In
s
pi
r
e an
d e
mp
o
w
er t
a
le
nt
3. Diversit
y, Eq
uit
y,
Inclusion
4. Communities
5. Sustainable
Smiths
EX
ECUTI
VE REMUNER
A
TION A
T A
GL
ANCE
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
78
Alignm
ent with t
he UK Corpor
at
e Governanc
e Code
Th
e t
abl
e bel
ow d
et
ail
s h
o
w the C
om
mit
tee add
re
s
s
es t
he f
ac
to
r
s s
et ou
t w
ith
in P
ro
v
is
ion 4
0 of the UK C
or
por
ate G
o
ver
nance C
o
de:
Clarity
–
The Commit
tee welcomes tr
anspar
enc
y and regular engagement with shareh
older
s with regar
d to ex
ecuti
ve remuner
ation.
Du
r
in
g 2
0
2
2
, th
e Co
mm
it
tee Ch
air
m
an h
a
s con
s
ulte
d w
i
th s
ha
re
ho
l
de
r
s to f
ul
ly u
nd
er
s
t
an
d th
ei
r v
ie
w
s p
ar
tic
ul
ar
ly in
rel
ation to
share bas
ed remuner
ation
Simplicity
–
Par
ticipants in incen
tiv
e plans recei
ve annual communications to
confir
m awar
d level
s and per
form
ance measures
.
Su
pp
or
tin
g gu
id
an
ce d
oc
um
ent
s a
nd i
ns
t
r
uc
t
io
na
l v
id
eo
s ar
e a
v
ai
l
ab
le o
nl
in
e. T
h
e Rem
un
er
atio
n Po
li
c
y f
or E
xecu
t
i
ve
Dir
e
c
to
r
s un
de
r
pi
ns t
ha
t of th
e w
id
er w
o
r
k
fo
rc
e an
d th
e 2
0
21 P
ol
ic
y re
v
ie
w f
ur
th
er s
imp
l
if
ie
d t
he a
r
r
a
ng
em
ent
s
Risk
–
The Commit
tee consider
s the effec
tive management of risk throughou
t the deliver
y of
incentive plan
s, applying re
asonable
dis
c
r
eti
on to o
v
er
r
ide fo
r
mu
l
ai
c ou
tco
me
s i
f ne
ce
s
s
a
r
y
–
The Commit
tee consider
s that the
str
uc
ture of incentive arr
angement
s does not encourage unneces
sar
y risk taking
–
Fo
r E
xe
cu
ti
v
e D
ir
e
c
tor
s
, o
ne t
hi
r
d of th
e an
nu
al b
on
us p
ay
m
en
t is d
efe
r
r
ed i
nto sh
ar
e
s w
i
th a
n ad
di
ti
on
al th
r
ee y
e
ar
s
until vest
ing
–
Rob
us
t m
alu
s an
d cl
a
w
b
ac
k pr
o
v
i
sio
n
s ar
e in p
l
ac
e fo
r inc
en
ti
v
e pl
a
ns a
nd a
r
e cl
ea
r
ly c
om
mun
ic
at
ed
Predictability
–
Our P
o
li
c
y c
le
ar
l
y ou
tl
i
ne
s th
e ma
x
im
um a
w
ar
d l
ev
el
s and v
e
s
tin
g o
utc
om
es a
pp
l
ic
ab
le t
o ann
ua
l bo
nu
s an
d LTIP
. A
s s
ta
ted
ab
ov
e un
de
r ‘r
is
k
’, the Co
mm
it
t
ee h
as t
he a
bi
li
t
y to app
ly di
s
cr
et
io
n to fo
r
mu
l
ai
c ou
tco
me
s an
d c
le
ar m
alu
s an
d cl
aw
ba
ck
prov
isions exist
Proportionality
–
T
he
re i
s a l
ink b
et
we
en s
t
r
ate
gi
c bu
si
ne
s
s ob
je
c
t
i
ve
s an
d p
er
for
manc
e ou
tco
me
, as o
u
tl
in
ed o
n p
ag
e 7
8
–
Our P
o
li
c
y f
or o
ur in
ce
nti
v
e pl
ans o
ut
li
ne
s t
hr
e
sh
ol
d, t
a
r
get a
nd m
a
xi
mum o
pp
o
r
tuni
t
y l
e
ve
l
s
, w
i
th a
c
tu
al o
utc
om
e
s
dependent
on per
formance achieved against pre-determined measures
–
T
hr
ou
gh t
he d
e
si
gn of t
he P
ol
ic
y and t
he d
is
cr
et
io
n of t
he C
om
mi
t
te
e, p
o
or p
er
for
manc
e is n
ot r
e
w
ar
d
ed
Alignment to culture
–
Sm
it
hs G
r
oup V
al
ue
s of p
a
s
sio
n
, inte
gr
i
t
y, res
pe
c
t
, o
w
ne
r
sh
ip an
d c
us
to
me
r fo
cu
s un
de
r
pi
n th
e de
si
gn a
nd o
pe
r
at
io
n of
the i
nc
ent
i
v
e pr
o
gr
a
mm
e
s. T
h
e bu
si
ne
s
s s
tr
ateg
y i
s su
pp
or
te
d by t
he
s
e Va
lue
s w
h
ic
h ar
e w
id
el
y co
mm
uni
c
ate
d ac
r
os
s
the Company
Consider
ation of wider
wor
k
force
Th
e C
ommi
t
te
e con
sid
er
s a
ll s
t
akeho
ld
er gr
o
ups w
h
en s
et
tin
g exe
cu
ti
ve p
a
y, includ
ing o
ur p
eop
le
. Th
e C
ommi
t
te
e is br
iefed on
pa
y ar
r
angem
ent
s a
cr
os
s th
e bu
sine
s
s an
d r
ece
i
ve
s r
ep
or
t
s on r
emun
er
ation i
ss
ue
s r
a
is
ed b
y emp
lo
ye
e
s thr
ou
gh th
e emp
lo
ye
e
eng
ag
eme
nt sur
v
ey an
d at di
v
i
sio
nal an
d f
unc
t
ion
al to
w
n hal
l me
etin
gs
.
In S
eptem
be
r 2
0
21 the C
om
mit
tee Chair
man dis
cu
s
se
d exe
cu
ti
v
e pa
y and s
us
t
ain
able b
us
ine
s
s pe
r
for
ma
nce at a
n emp
loy
e
e Q&
A
ev
ent
. A v
ide
o w
a
s cir
cu
l
ated in a
d
v
an
ce, ex
pl
a
inin
g w
hy w
e ha
ve a Re
mune
r
at
ion & P
eo
ple C
om
mit
te
e, h
ow w
i
der C
om
pa
ny p
ay p
ol
ic
ie
s
ar
e al
ign
ed w
i
th exe
cu
ti
v
e pa
y st
r
uc
t
ur
e
s, a
nd ho
w e
xecu
ti
v
e pa
y s
tr
u
c
tur
e
s al
ign to o
ur P
ur
p
os
e, Val
ue
s an
d cult
ur
e dr
i
v
e su
st
ain
ab
le
bus
ine
s
s pe
r
for
ma
nce fo
r th
e ben
ef
it of al
l ou
r st
akeh
ol
de
r
s. E
mp
lo
ye
e
s wer
e e
nco
ur
a
ge
d to sub
mit q
ue
s
tio
ns in a
d
v
an
ce, an
d as
k
questions on the day
.
Th
e ov
er
all r
e
spo
ns
ibil
i
t
y fo
r wo
r
k
for
ce e
ng
age
ment r
e
s
t
s w
it
h the S
e
nior I
nde
pe
nd
ent Dir
e
c
tor w
hi
le ea
ch No
n-
e
xec
uti
v
e Dir
e
c
tor h
as
re
sp
on
sib
il
it
y for wo
r
k
for
ce e
nga
ge
ment i
n a spe
ci
f
ic ge
og
r
ap
hic
al r
e
gio
n and b
usi
ne
s
s ar
ea
. Nin
e ev
ent
s at
te
nd
ed b
y Non
-
exe
cu
ti
ve
Dir
ec
to
r
s sp
ec
if
ic
a
lly r
el
a
tin
g to wo
r
k
for
ce en
ga
gem
ent to
ok pl
a
ce in F
Y
2
0
2
2
, f
ur
the
r det
ail
s of whi
ch ar
e ou
tl
in
ed o
n pa
ge 6
0
.
REMUNER
A
TION
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
79
Single
f
igure
of an
nual r
emuner
ation (
audi
ted)
E
xecu
ti
ve Dir
ec
tors
Sal
ar
y
Benefi
ts
P
ay
m
en
t
s in
lieu of
pension
contribution
T
otal fix
ed
Annual bonus
2
Lon
g-ter
m
incenti
ve
s
T
otal per
formance
rel
ate
d
To
t
a
l
FY2
022
£000
F
Y
20
21
£000
FY2
022
£000
F
Y
20
21
£000
FY2
022
£000
F
Y
20
21
£000
FY2
022
£000
F
Y
20
21
£000
FY2
022
£000
F
Y
20
21
£000
FY2
022
£000
F
Y
20
21
£000
FY2
022
£000
F
Y
20
21
£000
FY2
022
£000
F
Y
20
21
£000
Pa
ul K
e
el
1
875
16
3
18
3
54
96
10
1,1
5
4
227
67
8
223
–
–
67
8
223
1,
8
3
2
450
Clar
e Scher
rer
141
–
7
–
17
–
16
5
–
91
–
–
–
91
–
256
–
John Shipsey
(for
mer CFO)
5
51
5
40
26
11
11
3
131
69
0
682
344
5
67
22
3
3
2
81
4
5
67
848
1
,257
1,
5
3
0
1
A
n a
d
v
a
nc
e p
ay
m
e
nt o
f $
8
7,3
49 w
a
s m
ad
e t
o Pa
u
l Ke
e
l in A
u
gu
s
t 2
0
2
2 f
or h
im t
o s
et
t
le U
S t
a
xe
s d
ue o
n b
en
ef
i
t
s w
h
ic
h ar
e a
l
s
o t
a
xa
b
le i
n th
e U
K
. Up
o
n r
e
ce
ip
t of t
he r
e
f
un
d r
el
a
t
in
g to t
hi
s
fo
r
ei
gn t
a
x c
r
ed
i
t on h
is U
K t
a
x re
t
ur
n
, a f
ul
l r
e
fu
n
d w
il
l b
e pr
o
v
i
de
d t
o th
e C
om
p
an
y.
2
E
xec
ut
i
v
e Di
r
e
c
to
r
s d
ef
er 3
3% of t
h
e bo
n
us i
nt
o Sm
i
th
s sh
a
r
e
s. T
h
e to
t
al b
o
nu
s p
ai
d du
r
i
ng t
h
e ye
a
r, incl
u
di
ng d
e
fe
r
r
a
l
, is c
a
pt
u
r
ed u
n
de
r A
n
nu
al B
o
nu
s a
bo
v
e. T
h
e d
ef
er
ra
l is f
o
r a th
r
ee
-
ye
a
r pe
r
i
od a
n
d is n
o
t su
bj
e
c
t to a
ny f
u
r
t
h
er p
e
r
f
or
man
ce o
r o
th
er c
o
nd
i
ti
on
s
.
3
T
h
e sh
a
r
e pr
i
c
e ap
pr
e
c
ia
ti
o
n at
t
r
ib
u
t
ab
l
e to th
e F
Y
2
0
2
2 L
on
g Ter
m In
c
en
ti
v
e f
or J
o
hn S
hi
p
se
y w
a
s 8
.
0
% (£
7
,6
6
3
). F
o
r F
Y2
0
2
1 i
t w
as 11.3
% (
£
2
0
,
52
6
). N
o di
s
cr
e
ti
o
n ha
s b
ee
n a
pp
l
ie
d t
o th
e
amounts attributable to
share price
appreciation.
4
T
h
e L
on
g Ter
m In
c
en
ti
v
e v
a
lu
e fo
r F
Y
2
0
21 f
or J
o
hn S
hi
p
s
ey h
a
s be
e
n r
e
st
a
te
d to s
ho
w t
h
e ac
t
u
al a
mo
u
nt (
r
a
th
er t
h
an t
he e
s
t
im
at
e
d am
o
unt i
n l
a
s
t ye
a
r
’s re
p
or
t
) an
d to i
nc
l
ud
e di
vi
de
n
d
ac
cr
ual p
a
y
me
nt
s o
f £
2
2
,
4
61 wh
i
ch w
a
s p
ai
d o
n ve
s
t
in
g
. T
he t
ot
a
l r
em
un
er
ati
o
n is a
l
s
o r
e
s
ta
te
d a
cc
or
d
in
g
ly. T
h
e e
s
ti
ma
te
d L
o
ng Ter
m I
nc
en
ti
v
e v
a
lu
e
s fo
r F
Y
2
0
2
2 ar
e c
a
lc
u
l
at
ed u
s
in
g th
e
ve
s
t
in
g p
er
c
en
ta
g
e of 14
.1% and t
he a
v
e
r
a
ge s
ha
r
e p
r
ic
e o
ve
r t
he t
hr
e
e m
on
th
s t
o 2
9 Ju
ly 2
02
2 o
f 1,47
9
p; i
t al
so i
nc
lu
d
e
s th
e di
v
i
d
en
d a
cc
r
u
al p
a
y
me
nt o
f £16,7
9
1 fo
r J
oh
n Sh
i
ps
e
y, p
ay
a
b
le
on v
e
s
ti
n
g. T
h
e a
ve
r
a
g
e sh
ar
e p
r
i
ce f
or t
h
e f
i
ve d
a
y
s to 2
9 J
ul
y 2
0
2
2 o
f 1,512p i
s u
se
d t
o c
al
cu
l
at
e th
e d
i
v
id
e
nd e
q
ui
v
a
le
nt v
a
l
ue
.
S
al
ar
y
Cl
ar
e S
ch
er
r
er w
a
s app
oi
nted to th
e Bo
ar
d a
s Chief F
i
nan
cia
l Of
fic
er on 2
9 Ap
r
il 2
0
2
2 w
it
h an an
nual b
a
se s
a
l
ar
y of £
5
5
3
,75
0. T
h
e v
alu
es
in the s
ing
le f
igu
re t
ab
le ab
ov
e r
ef
le
c
t the r
em
une
r
ati
on p
aid f
r
om 2
9 A
pr
il 2
0
2
2
.
Joh
n Ship
s
ey s
tep
pe
d do
w
n fr
o
m the B
o
ar
d as Ch
ief F
in
anc
ial O
f
fice
r on 2
9 A
p
r
il 2
0
2
2 a
nd r
em
aine
d emp
lo
ye
d b
y the G
r
oup unt
il 31 July
2
0
2
2 to ens
ur
e a smo
oth t
r
an
si
tio
n. T
h
e v
alu
es i
n the s
ing
le f
igur
e t
ab
le ab
ov
e r
efl
ec
t t
he r
emu
ner
ation p
ai
d to 31 July 2
0
2
2
.
Ben
efi
t
s
Ben
ef
it
s fo
r E
xe
cu
ti
v
e Dir
ec
to
r
s in
clu
de l
ife a
s
sur
ance, d
is
ab
il
it
y insur
ance, p
r
i
v
ate he
al
thc
ar
e in
sur
ance, c
a
r re
l
ated b
en
efi
t
s an
d
reloc
ation benefits (CEO only).
Pension
E
xec
ut
i
ve
s ma
y ch
oo
se e
ith
er to p
ar
tici
pate i
n the C
om
pa
ny
’s define
d co
ntr
ib
ut
ion p
en
sio
n pl
an o
r to re
ce
i
ve a p
ens
ion a
ll
ow
a
nce i
n li
eu
the
re
of. P
aul K
eel a
nd Cl
a
re S
c
her
rer r
e
cei
v
ed an a
ll
ow
a
nce in l
ie
u of pe
ns
ion c
ontr
i
but
io
n equ
i
v
alent to 12% of s
a
l
ar
y dur
ing the y
ea
r
.
Th
is is a
li
gne
d to th
e r
ate a
v
ail
ab
le to th
e w
id
er UK w
or
k
fo
rc
e.
Joh
n Ship
s
ey r
e
cei
v
ed an a
ll
ow
a
nce in l
ie
u of pe
ns
ion c
ontr
i
bu
tio
n of 2
0.
5% of s
a
l
ar
y dur
i
ng th
e ye
ar
.
F
Y
2
02
2 a
nnual bo
nus ou
tcome
Th
e ma
xi
mum an
nua
l bo
nus o
ppo
r
tuni
tie
s fo
r F
Y
2
0
2
2 we
re 2
00
% of s
a
l
ar
y for P
a
ul Ke
el
, 165% o
f s
al
ar
y fo
r Cl
ar
e S
ch
er
r
er (
p
r
o-
r
ate
d
for ti
me si
nce ap
po
intm
ent
) a
nd 165% of s
a
l
ar
y fo
r the fo
r
me
r CFO, J
ohn S
hip
se
y.
For F
Y
2
0
2
2
, f
ina
nci
al met
r
ic
s m
ad
e up 9
0
% of th
e annu
al b
onu
s, w
i
th th
e f
ina
l 10% ba
s
ed o
n per
for
mance a
gai
ns
t pe
r
s
ona
l obj
ec
ti
v
e
s.
Th
e t
abl
e bel
ow s
umm
ar
i
se
s th
e fi
nan
cia
l ta
rg
et
s an
d the C
om
pa
ny
’s actu
al p
er
for
m
ance (
r
e
st
ate
d at bu
dge
t excha
ng
e r
ate
s) a
gai
ns
t
the
s
e for t
he F
Y
2
0
2
2 an
nual b
on
us
.
Per
forman
ce targets
, actual perfor
mance and outtur
n
Measure
Weightin
g
Thre
shold
25% pay
out
Ta
r
g
e
t
5
0
% p
ay
o
ut
Maximum
10
0
% p
a
y
ou
t
A
ctual
Outtur
n
Oper
ating Profi
t
40%
£
4
59m
£
47
8
m
£
50
2m
£46
4
12
.
8
%
Revenue Grow
th
30%
£
2,
784m
£
2
,
8
41m
£
2,926m
£
2,8
32
13
.
8
%
Headline Oper
ating Cash Conver
sion
H1
10
%
90%
10
0
%
110
%
93%
3.2%
FY
10
%
95%
10
5
%
11
5
%
8
1%
0.0%
T
otal Financial
90%
2
9.
8
%
Pers
onal Objecti
ve
s
10
%
90%
9.
0
%
To
t
a
l
10
0
%
38.8%
REMUNER
A
TION
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
80
Per
sonal objec
tives
Chal
le
ngin
g pe
r
s
ona
l obj
ec
t
i
ve
s ar
e s
et ea
ch y
ear f
or th
e E
xe
cu
ti
ve D
ir
ec
to
r
s
, to re
info
rc
e the C
om
pan
y
’
s op
er
ating an
d s
tr
ate
gic
pr
io
r
it
ie
s
. T
he pe
r
s
ona
l obj
ec
t
i
ve
s for t
he E
xecu
ti
ve D
ir
ec
to
r
s for F
Y2
02
2 co
mpr
ise
d a numb
er of s
tr
ategic l
on
g-ter
m enabl
er
s
, s
om
e
of which remain commercially sensiti
ve, together with shor
t
-term proje
ct
s aligned to innovation, oper
ational excellence and capabilit
y
pl
an
ning
. A
chi
ev
eme
nt
s ag
ain
st p
er
s
on
al ob
je
c
ti
v
es i
n the y
ea
r (w
h
ich h
av
e a 10% w
eight
ing
) a
r
e in the t
ab
le b
elo
w. Dur
ing the p
r
oce
s
s
of ste
ppi
ng d
ow
n
, the p
er
for
m
an
ce of Jo
hn Sh
ips
e
y w
as co
ns
ide
re
d an
d as
s
e
ss
e
d by t
he C
omm
it
te
e and a
n ov
er
all r
at
ing o
f 8
0
% w
as
agr
e
ed (o
ut
tur
n of 8
% of ma
x
imum b
on
us
).
Pa
ul Keel
Categor
y
Achievement
Outt
urn
Grow
th
(including
financial
s)
Group Strategy
De
ve
lop
ed a
nd co
mmu
nic
ate
d a com
pel
l
ing e
nter
pr
ise s
tr
ateg
y
for th
e Gr
ou
p inc
lud
ing e
x
ten
si
v
e inv
es
to
r eng
ag
eme
nt, a
high
li
ght of w
hi
ch w
as t
he N
ov
emb
er 2
0
21 C
ap
it
al Ma
r
ket
s Ev
ent
.
Envir
onmental
,
Social & Gov
ernan
ce
E
s
ta
bl
ish
ed a B
o
ar
d-
le
ve
l sus
t
ain
abil
i
t
y fo
cu
s
ed C
omm
it
te
e -
the S
c
ienc
e, S
us
ta
ina
bil
it
y & E
xcel
len
ce (
S
S
E
) C
om
mit
tee and
app
ointe
d Chi
ef Su
st
ain
abi
li
t
y Of
f
ic
er
. O
ver
sa
w the d
ev
el
opm
ent an
d
impl
eme
nta
tio
n of a com
pel
l
ing G
r
oup
-
w
id
e sus
t
ain
abil
i
t
y s
tr
ateg
y
w
hich w
as inco
r
po
r
ate
d into inc
enti
v
e co
mpe
ns
at
ion p
r
ogr
amme
s
.
Se
t and c
omm
unic
ate
d env
i
r
onm
ent
al go
al
s, to sup
po
r
t the
del
i
ve
r
y of our c
omm
itm
ent to Ne
t Zer
o GHG E
mi
ss
ion
s f
ro
m
ope
r
at
ion
s by 2
0
4
0. Ma
pp
ed o
ur ap
pr
oa
ch
, sig
nin
g on to th
e
Sc
ien
ce B
as
ed Target
s In
it
iati
v
e and t
he UN R
ac
e to Zer
o ple
dg
e.
Por
t
folio
Clo
se
d the S
mi
ths M
ed
ic
al tr
ans
ac
t
ion w
i
th an e
nter
p
r
is
e v
alu
e
of $2
.7bn an
d an e
qui
t
y v
a
lue of $
2
.4
b
n af
te
r adju
s
tme
nt
s for
debt
, l
iab
ili
ti
es a
nd w
or
k
in
g ca
pi
tal
.
4
4.
2
/
50.0
E
xe
cu
ti
on
Smiths E
xcellence
Sy
s
tem (
SE
S)
De
ve
lop
ed a
nd de
pl
oy
ed a G
ro
up
-
w
ide S
E
S pr
o
gr
a
mme
, buil
din
g
on th
e foun
dat
ion
s of th
e SE
S A
c
ad
em
y and e
mbe
dd
ing l
ean
meth
od
olo
g
y. A
pp
ointm
ent of M
as
ter Bl
a
ck B
elt
s a
nd Bl
a
ck
Bel
t
s in al
l di
v
is
ion
s to en
sur
e de
li
v
er
y of r
e
sul
t
s.
Oper
ations
Nav
igated globa
l supply chain hea
dw
ind
s, inclu
ding impac
t
s
fr
om U
kr
aine in
v
asi
on
. Del
i
v
er
ed p
r
odu
c
ti
v
i
t
y an
d pr
icing g
ain
s to
of
f
s
et r
a
w mater
ial infl
ation
. Man
age
d w
or
k
ing c
a
pit
al l
ev
el
s to
suppor
t gro
w
th
.
Customer
Impr
o
ve
d On T
i
me in Fu
ll (O
T
IF
) and r
edu
ce
d
Co
st o
f Poo
r Qu
al
it
y (CO
P
Q
).
23.0
/25.0
People
Te
a
m
Ke
y E
xe
cu
ti
ve C
om
mit
tee app
oint
ment
s i
ncl
udin
g CF
O, CP
O,
CS
O, J
ohn C
r
an
e Pr
e
si
dent a
nd Gr
o
up SE
S D
ir
ec
to
r
.
Inclusion
and Diver
sit
y
E
s
ta
bl
ish
ed a
n ex
ten
de
d le
ad
er
sh
ip tea
m com
pr
i
se
d of th
e top
2
0
0 le
ad
er
s
, w
i
th imp
r
ov
ed di
v
er
sit
y
. In ad
dit
ion
, th
e num
ber of
se
nior l
ea
de
r
shi
p po
sit
ion
s t
aken b
y fema
le
s is 2
4%.
T
alent
Develop
ment
De
ve
lop
ed a
nd l
au
nch
ed a
n as
s
es
s
ment
, de
ve
lop
me
nt and
re
w
ar
d p
r
ogr
amme th
at en
sur
e
s al
l cr
i
tic
al l
ea
der
ship r
ole
s
hav
e ‘re
ad
y no
w
’ su
cce
s
so
r and t
al
ent pip
el
in
e is co
ns
t
antl
y
re
v
ie
w
ed an
d in de
v
elo
pme
nt.
22.8/25
.0
T
otal (
9% of maximum bonus oppor
tunit
y)
90.0/100.0
Cl
are S
ch
er
re
r (fro
m 29 A
pri
l 20
22
)
Achievement
Outt
urn
Grow
th
E
xe
cu
ti
on
People
Cl
ar
e ha
s ma
de an e
xcel
lent s
t
ar
t in her f
ir
st qua
r
ter wi
th S
mit
hs in
clu
din
g: -
– Co
ncl
udin
g th
e fi
nal b
u
y-
in for t
he £1
bn l
eg
ac
y T
I G
r
oup Pe
ns
ion S
c
hem
e
– De
ve
lop
ing a
nd de
plo
y
in
g s
tr
ong i
nter
na
l cont
r
ol
s
– Str
u
c
tur
i
ng an ef
fec
ti
v
e F
in
anc
e Le
ad
er
sh
ip tea
m w
ith ke
y app
oi
ntme
nt
s
– Del
i
v
er
in
g go
od H
2 fi
nan
cial r
e
su
lt
s an
d fi
f
t
h con
s
ec
uti
v
e qu
ar
ter of gr
ow
th
O
ve
r
a
ll r
ati
n
g of
90% was approv
ed
by the
Committee
re
p
re
s
e
nt
in
g 9
% o
f
maximum bonus
(pro
-r
ated for ser
vice)
REMUNER
A
TION
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
81
O
ver
all F
Y
2
0
2
2 annual b
onus
out
tur
n
Th
e fo
llo
w
in
g ta
ble s
et
s o
ut th
e ov
er
all F
Y
2
0
2
2 b
onu
s ou
t
tur
n for E
xec
ut
i
ve D
ir
ec
to
r
s:
Maximum oppor
tuni
t
y
Out
tur
n (
p
e
r
ce
nt
a
ge o
f m
ax
i
mu
m
)
Pa
ul K
e
el
200%
3
8.8%
Clar
e Scher
rer
1
16
5
%
38.8
%
John Shipsey
(former CFO)
16
5
%
3
7.
8
%
1
C
l
ar
e S
c
h
er
r
e
r jo
i
ne
d t
he B
o
ar
d a
s C
hi
ef F
i
n
an
ci
al O
f
fi
ce
r o
n 2
9 A
p
r
il
. T
h
e m
ax
i
mu
m b
on
us o
p
p
or
tun
i
t
y o
f 165
% o
f s
al
a
r
y ha
s be
e
n pr
o
-
r
a
te
d to r
e
fl
e
c
t th
e t
im
e s
in
ce a
pp
o
in
tm
e
nt
.
Th
e C
ommi
t
te
e con
sid
er
e
d the am
ou
nt
s ca
r
efu
lly i
n the c
ontex
t of the Gr
o
up’
s per
for
mance
, indi
v
i
dua
l pe
r
for
man
ce an
d the c
ur
r
ent
mac
ro
e
con
omi
c env
i
ro
nme
nt, a
nd de
ter
min
ed t
hat th
e am
ount
s w
er
e a f
air r
ef
le
c
tio
n of pe
r
for
ma
nce in t
he p
as
t f
ina
nci
al y
ear
.
F
Y2
02
0 long-t
erm incen
tive plan outco
me
Joh
n Ship
s
ey r
e
cei
v
ed an a
w
ar
d un
de
r the LTIP in O
c
tob
er 2
019
, s
ubje
c
t to th
e fol
lo
w
in
g per
for
mance c
ond
iti
on
s:
Measure
Weightin
g
Per
formance period
Thre
shold
(25%)
Maximum
(10
0
%
)
A
ctual
Out
turn
(% o
f vest
ing)
Organic s
ales gro
w
th
30%
1 A
ug
us
t 2
0
19 to
31 Jul
y 2
0
2
2
3%
6%
0
.
6%
0.0%
Gr
ou
p E
P
S gr
o
w
th af
t
er t
a
x
25%
1 A
u
gu
s
t 2
019 to
31 Jul
y 2
0
2
2
4% p.
a.
11
%
p
.
a
.
1.
8
%
0.0
%
Av
er
age R
O
CE
20%
1 A
ug
us
t 2
0
19 to
31 Jul
y 2
0
2
2
15
%
p
.
a
.
18
%
p
.
a
.
13
.7
%
0.0
%
Aver
age headline oper
ating cash conver
sion
25%
1 A
u
gu
s
t 2
019 to
31 Jul
y 2
0
2
2
90%
10
5
%
96%
14
.1
%
T
otal vesting
1
4
.1
%
No dis
c
ret
ion w
as exer
cis
e
d by t
he Rem
uner
ation & P
eo
ple C
om
mit
tee in r
es
pe
c
t of th
e for
m
ul
aic o
utco
me
s un
der t
he LTIP
. No a
w
ar
d
s
wer
e d
ue to ve
s
t to P
aul K
ee
l or Cl
a
re S
c
her
rer un
der t
his a
w
ar
d
.
Scheme in
terests aw
arded in respec
t of F
Y20
22 (audited)
Sc
he
me inter
e
s
t
s aw
a
r
de
d ar
e ou
tl
ine
d be
lo
w.
Scheme
F
o
r
m of a
w
a
r
d
D
a
te of g
r
a
nt
Number
of s
ha
r
e
s
awarded
Awar
d
price
Face value
(£000
)
% ve
s
t
in
g at
threshold
per
form
ance
Per
forman
ce
pe
r
i
od e
n
d da
te
Pa
ul K
e
el
LT
I
P
Conditional shares
5 November 2
021
18
9,
9
0
0
1,
4
3
5
p
2,
725
25%
31 Jul
y 2
0
2
4
Pa
ul K
e
el
Def
erred bonus
Conditional shares
5 November 20
21
5,378
1,
4
3
5
p
77
N
/A
N
/A
John Shipsey
LT
I
P
C
onditional shares
5 November 20
21
1
0
0
,1
5
0
1,
4
3
5
p
1,
4
3
7
25%
31 Jul
y 2
0
2
4
John Shipsey
Deferred bonus
Conditional shares
5 November 20
21
13
,
6
8
0
1,
4
3
5
p
196
N
/A
N
/A
No aw
ard
s wer
e g
r
ante
d to Cl
ar
e S
ch
er
r
er i
n F
Y
2
0
2
2.
Th
e pe
r
for
ma
nce m
ea
sur
e
s for t
he F
Y
2
0
2
2 LTIP a
w
ar
d ar
e as f
ol
lo
w
s:
Measure
Weighting
Thre
shold
(25% vest
ing)
M
aximum
T
hr
ee
-
y
ea
r EP
S gr
ow
th af
ter t
ax
20%
4% p.
a
.
11%
p
.
a
.
Thr
ee-y
ear organic revenu
e grow
th
30%
2
% p.
a
.
6% p
.
a
.
T
hr
ee
-
y
ea
r av
er
age f
r
e
e c
as
h-
fl
o
w (a
s a p
er
ce
nt
ag
e of o
pe
r
at
in
g pr
of
i
t
)
20%
45%
55%
T
hr
ee
-
y
ea
r av
er
age r
e
tur
n on ca
pi
t
al e
mp
lo
ye
d
15
%
13
%
17
%
Three
-year reduc
tion in
greenhous
e gas em
issions (nor
malised
)
15
%
5%
10
%
To
t
a
l
10
0
%
REMUNER
A
TION
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
82
Pay
men
t
s to past Directors (audited
)
A
nd
y Re
y
no
lds S
mi
th w
a
s pai
d an am
ount of £
8
76,4
51 in li
eu of n
otic
e for th
e un
ser
v
ed p
ar
t of hi
s t
w
el
ve m
onth n
otic
e per
iod w
hi
ch
end
ed o
n 24 M
ay 2
0
2
2
. In a
ddi
tio
n, t
he F
Y
2
0
2
0 LTIP w
il
l ve
s
t in 2
0
2
2
, pr
o
-r
ated for s
er
v
ic
e to 31 July 2
0
21. 1
79
,62
7 sha
re
s
, pr
o
-r
ated for
se
r
vi
ce w
il
l ve
s
t at 14.
1
%. T
hi
s is eq
ui
v
al
ent to 16,8
8
5 s
har
e
s a w
it
h an e
s
tima
ted v
al
ue of £
2
49
,
72
9
.
Pay
men
t
s for loss of o
f
fice (audit
ed)
Joh
n Ship
s
ey s
tep
pe
d do
w
n fr
o
m the B
o
ar
d on 2
9 A
pr
il 2
0
2
2 bu
t re
mai
ne
d an emp
lo
ye
e of th
e Co
mp
any o
n his e
xi
s
ting te
r
ms o
f
emp
loy
m
ent unt
il 31 July 2
02
2
.
Mr Shi
ps
ey w
i
ll b
e pai
d in l
ieu of n
oti
ce for t
he un
s
er
ve
d p
ar
t of his 12 month not
ice p
er
i
od
. T
he p
ay
m
ent in l
ieu o
f noti
ce w
il
l be m
ade i
n
mont
hly in
s
ta
lm
ent
s to en
abl
e a r
edu
c
tio
n in th
e pa
y
ment
s in the ev
ent t
hat Mr S
hip
se
y f
ind
s alte
r
nat
i
ve em
plo
y
me
nt pr
i
or to 2
9 A
p
r
il
2
0
2
3. Fu
r
ther d
eta
il
s in r
el
ation to th
e pa
y
me
nt in l
ieu of n
otic
e w
ill b
e pr
o
v
id
ed in t
he F
Y
2
0
2
3 A
nnual Rep
or
t
.
Mr Shi
ps
ey r
em
ain
ed e
ntit
le
d to re
cei
v
e an an
nua
l bo
nus fo
r F
Y
2
0
2
2
, the f
ul
l v
alu
e of w
hic
h ha
s be
en in
clu
de
d in th
e sin
gle f
ig
ur
e tab
le
.
One t
hir
d of t
he an
nual b
on
us w
il
l be d
efer
r
e
d into sh
ar
es f
or th
re
e ye
ar
s.
Mr Shi
ps
ey
’s shar
e aw
a
r
ds un
der t
he C
omp
an
y’s Lon
g-
T
erm I
nce
nti
ve P
l
an (
LTIP
), w
ill b
e pr
e
se
r
ve
d in acc
or
da
nce w
i
th th
e go
od l
ea
ve
r
pr
ov
i
sio
ns of t
he LTIP
, su
bje
c
t to a tim
e pr
o
-r
ating a
dju
st
ment a
nd no
r
ma
l ve
s
tin
g date
s
. Infor
mation r
e
l
atin
g to the v
e
st
ing o
f sha
re
s
und
er th
e L
T
IP w
il
l be up
date
d in th
e r
ele
v
ant D
ir
ec
tor
s
’ Remu
ner
ation Rep
or
t
s
.
Th
e C
omp
an
y mad
e a co
ntr
ib
uti
on to
w
ar
ds M
r Shi
ps
ey
’s legal f
ee
s of up to £12,0
0
0
.
Directors’ s
hare opti
ons and long-
term share plans (audi
ted)
Op
ti
o
n an
d a
w
ar
d d
at
a
Awards
vested
F
Y
20
21
Di
r
ec
t
or a
n
d P
l
an
Options
and awards
he
ld o
n 31
Ju
ly 2
0
2
2
Number
Options
and awards
he
ld o
n 31
Ju
ly 2
0
2
1
Number
Per
forman
ce
test
Exercise
price
Gr
ant
date
Vesting
date
+
Ex
pir
y
date
+
+
Date ves
ted
Numb
er
Exercise
price
Mar
ket
price at
da
te of
gr
ant
Mar
ket
price at
da
te of
vestin
g
Paul Keel
LT
I
P
141
,
0
5
9
1
41
,
0
5
9
B
n
/a
2
8
/
0
9/
21
No
v 2
0
2
3
1
8
9,
9
0
0
0
C
0
5
/
11
/
2
1
N
ov 2
0
24
Deferred bo
nus award
5,378
0
–
n/a
0
5
/
11
/
2
1
0
5
/
11
/
2
4
S
AY
E
1,
5
47
0
–
116
3
p
1
7
/05/22
01
/
08/25
01/
02
/
26
Jo
hn S
hi
ps
e
y
(Form
er CFO)
LT
I
P
0
95,8
37
A
n
/a
31/1
0
/18
O
c
t 2
0
21
13
/
10
/
2
1
1
8,209
n
/a
1,
3
6
9
p
1,
4
2
1p
95,8
37
95,8
37
A
n
/a
03
/10/19
Oc
t 2
0
2
2
95,8
37
95,8
37
B
n
/a
0
4
/
11
/
2
0
N
ov 2
02
3
1
0
0
,1
5
0
0
C
0
5
/
11
/
2
1
N
ov 2
02
4
Deferred bo
nus award
0
6,
39
3
–
n/a
31/1
0/18
31/
10
/
21
31/
10
/
2
1
6,39
3
n
/a
1,
3
69
p
1,
4
2
1p
6
,9
3
3
6
,9
3
3
–
n
/a
03
/10/19
0
3/1
0/22
3,4
06
0
–
n/a
0
4
/
11
/
2
0
0
4
/
11
/
2
3
13
,
6
8
0
0
0
5
/
11
/
2
1
0
5
/
11
/
2
4
S
AY
E
1,96
9
1,96
9
–
914
p
20/05/20
01
/08/23
01/
0
2
/
2
4
Key
LTI
P
T
h
e Sm
i
th
s Gr
o
u
p Lo
n
g-Ter
m In
ce
nt
i
v
e P
l
an 2
0
15.
SAYE
The Smiths Group Sharesave Scheme.
+
T
h
e v
es
t
i
ng d
at
e
s sh
o
w
n ab
o
v
e in r
e
sp
e
c
t of a
w
a
r
d
s ma
d
e un
de
r t
he LT
IP a
r
e s
ub
je
c
t t
o th
e r
el
e
v
an
t pe
r
for
m
a
nc
e te
s
t
(
s
) b
ei
ng p
a
s
s
ed
.
+
+
T
h
e ex
p
ir
y da
te
s s
ho
w
n a
b
ov
e a
pp
l
y in n
or
m
a
l ci
r
cu
m
s
ta
n
ce
s
.
Perfor
mance tests
A
LTIP a
w
a
r
ds i
n 2
0
18 an
d 2
019 – 2
5
% su
bj
e
c
t to E
P
S g
r
o
w
t
h; 2
0
% s
ub
j
ec
t t
o R
O
CE
; 2
5% s
u
bj
e
c
t to c
a
sh c
on
v
e
r
si
o
n; 3
0
% s
ub
je
c
t t
o or
g
an
i
c re
v
e
nu
e gr
o
w
th.
B
LTI
P a
w
ar
d
s i
n 2
0
2
0 – 2
5
% su
bj
e
c
t to E
P
S g
r
o
w
t
h; 2
5
% su
bj
e
c
t to R
O
CE
; 2
5
% su
b
je
c
t to f
r
e
e c
a
sh
-f
l
o
w; 2
5
% s
ub
je
c
t t
o or
g
an
i
c re
v
e
nu
e gr
o
w
th
.
C
LT
I
P aw
a
r
d
s in 2
0
2
1 – 2
0
% s
ub
je
c
t to E
P
S gr
ow
th; 15
% su
b
je
c
t to R
O
C
E; 2
0
% s
u
bj
e
c
t to f
r
ee c
a
s
h-
f
lo
w
; 3
0
% s
ub
je
c
t t
o or
g
an
i
c re
v
e
nu
e gr
o
w
th; 15
% su
bj
e
c
t to r
e
du
c
t
io
n in g
r
e
en
ho
u
s
e
gas emissions.
–
T
h
er
e a
r
e n
o pe
r
for
m
a
nc
e cr
i
t
er
i
a fo
r t
he D
ef
e
r
r
ed B
o
nu
s S
ha
r
e
s a
w
ar
d
s or S
AYE
.
Notes
–
T
h
e hi
g
h an
d lo
w m
a
r
ket p
r
i
ce
s o
f th
e o
r
di
na
r
y sh
ar
e
s du
r
i
ng t
h
e pe
r
i
od 1 A
u
g
us
t 2
0
2
1 to 2
9 J
ul
y 2
0
2
2 w
e
r
e 1,6
2
9p a
n
d 1,3
5
6
p r
e
sp
e
c
t
i
ve
l
y. T
he m
id
-
m
ar
k
et c
lo
s
in
g pr
ice o
n 31 J
ul
y 2
0
21
w
as 1,
5
5
5
.5
p a
nd o
n 2
9 J
ul
y 2
0
2
2 w
a
s 1,5
4
3
p.
–
T
h
e mi
d
-m
a
r
ke
t cl
o
si
ng p
r
i
ce o
f a Sm
i
th
s G
r
ou
p sh
a
r
e on t
he d
a
te of t
h
e aw
ard
s m
ad
e t
o Di
r
ec
t
or
s in th
e F
Y2
02
2 f
i
na
nc
i
al y
e
ar w
a
s 1,
4
3
5
p (
5 N
o
ve
m
be
r 2
0
2
1).
–
T
h
e op
t
io
n o
ve
r 1,5
47 sh
ar
e
s gr
ant
ed t
o an
d h
el
d b
y P
au
l Ke
e
l at 3
1 Ju
ly 2
0
2
2 wer
e g
r
a
nte
d a
t an e
xe
r
ci
s
e pr
ice b
el
o
w t
he m
ar
ket pr
ice o
f a Sm
i
th
s G
ro
u
p sh
ar
e o
n 17 Ma
y 2
0
2
2 (1,
4
5
4p
).
Sh
ar
e
s a
r
e gr
ante
d i
n Ma
y b
ut t
h
e s
av
i
n
gs p
e
r
io
d c
om
m
en
ce
s i
n A
ug
us
t
.
–
T
h
e op
t
io
n
s ov
e
r 1,969 sh
ar
e
s g
r
an
te
d to a
n
d he
l
d by J
o
hn S
hi
p
se
y a
t 31 J
ul
y 2
0
2
2 w
er
e g
r
a
nt
ed a
t an e
xe
r
ci
s
e pr
ice b
e
lo
w t
he m
ar
ket pr
ice o
f a Sm
i
th
s G
r
ou
p sh
a
re o
n 2
0 M
a
y 2
0
2
0 (1,
26
8
p
).
Sh
ar
e
s a
r
e gr
ante
d i
n Ma
y b
ut t
h
e s
av
i
n
gs p
e
r
io
d c
om
m
en
ce
s i
n A
ug
us
t
.
–
N
on
e o
f th
e op
t
io
n
s or a
w
a
r
ds l
i
s
te
d ab
o
v
e w
as s
u
bj
e
c
t to a
ny p
a
y
me
nt o
n g
r
an
t
.
–
N
o ot
h
er D
ir
e
c
to
r
s h
el
d a
ny o
p
ti
on
s o
v
er t
h
e Co
m
pa
n
y’s s
ha
r
e
s du
r
i
ng t
h
e pe
r
i
od 1 A
u
gu
s
t 2
0
2
1 to 31 J
ul
y 2
0
2
2
.
–
N
o op
t
io
n
s or a
w
a
r
ds h
a
ve b
e
en g
r
a
nt
ed t
o or e
xe
r
ci
s
e
d by D
i
r
ec
t
or
s or ha
v
e l
ap
s
e
d du
r
in
g t
he p
e
r
io
d 1 A
u
gu
s
t to 16 S
e
pte
m
be
r 2
0
2
2
.
–
A
t 31 J
ul
y 2
0
2
2
, t
he t
r
u
s
te
e of t
he E
m
pl
o
y
ee S
h
ar
e Tr
us
t h
el
d 618,
6
62 s
h
ar
e
s
. T
he m
a
r
ke
t v
al
ue o
f t
he s
ha
r
e
s he
l
d b
y th
e tr
us
te
e on 3
1 Ju
ly 2
0
2
2 wa
s £
9,5
4
5
,9
5
5 an
d al
l d
i
v
id
e
nd
s w
er
e
w
ai
v
e
d in t
he y
e
a
r in r
e
sp
e
c
t of t
h
e sh
a
re
s h
e
ld b
y t
he t
r
u
s
te
e.
–
S
p
ec
i
al p
r
o
v
is
io
n
s pe
r
m
i
t ea
r
l
y ex
er
c
is
e o
f op
ti
o
ns a
n
d ve
s
t
in
g of a
w
a
r
ds i
n t
he e
v
en
t of r
e
ti
r
em
e
nt
, r
ed
un
d
an
c
y, a
nd d
e
at
h
.
REMUNER
A
TION
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
83
Share ownership requi
rement f
or E
xecut
ive Direc
tors
E
xec
ut
i
ve D
ir
ec
to
r
s ar
e r
eq
uir
ed to b
uil
d a minim
um sh
ar
eho
ld
ing e
qui
v
a
lent to t
he ann
ual f
i
xed nu
mb
er of sh
ar
es a
w
ar
d
ed un
de
r the
L
T
IP w
it
hin f
i
ve y
ea
r
s
. E
xe
cu
ti
ve D
ir
ec
to
r
s ar
e r
eq
uir
ed to r
et
ain a
t lea
s
t 5
0
% of an
y net v
es
te
d sha
re a
w
ar
d
s (af
ter s
ale
s to me
et t
ax
li
abil
i
tie
s) u
ntil th
os
e gu
ide
lin
e
s ar
e ach
ie
ve
d. S
har
e
s un
der d
efer
r
e
d bo
nus a
w
ar
d
s and LTIP a
w
ar
ds w
h
ich h
av
e ve
s
ted b
ut ar
e s
ubje
c
t
to a fur
th
er ho
ld
ing p
er
i
od (
net of a
s
sum
ed i
nco
me t
ax
) count to
w
ar
d
s the r
e
quir
em
ent
. Aw
a
r
ds th
at ar
e s
til
l sub
jec
t to p
er
for
m
anc
e
con
dit
ion
s do n
ot co
unt tow
ard
s the r
e
quir
em
ent
.
E
xec
ut
i
ve D
ir
ec
to
r
s w
il
l be r
eq
uir
ed to h
ol
d sha
r
es e
qui
v
a
lent to t
heir f
ul
l in
-
emp
lo
y
ment s
har
eh
ol
din
g guid
el
ine
, or ac
t
ual h
ol
din
g
if lo
w
er
, for t
w
o y
ear
s pos
t-em
plo
y
me
nt, in l
in
e w
it
h be
s
t pr
a
c
tic
e gui
dan
ce. T
o enfo
rc
e thi
s re
qui
re
ment
, v
es
te
d sha
re
s ar
e h
eld i
n a
nom
ine
e acc
ount p
ro
v
id
ed b
y Sm
it
hs sh
ar
e pl
a
n admi
nis
tr
ator
. This p
ol
ic
y appl
ie
s to A
n
d
y Rey
n
old
s Smi
th
, w
ho s
tep
pe
d do
w
n f
ro
m
the G
ro
up du
r
ing F
Y
2
0
21, and Jo
hn S
hips
e
y w
ho s
tep
pe
d do
w
n fr
o
m the G
r
oup du
r
ing F
Y
2
02
2
. Mr Rey
n
ol
ds S
mit
h is r
eq
uir
ed to h
ol
d a
numb
er of s
har
e
s in th
e Co
mp
any w
i
th a v
a
lue at l
ea
st e
qu
al to £
2
,
1
09
,
4
5
0 at 31 Ju
ly 2
0
21 unti
l at le
as
t 31 July 2
0
2
3, w
hile M
r Shi
ps
ey i
s
re
qui
re
d to ho
ld 5
4,959 sh
ar
es i
n the C
om
pa
ny unti
l at le
as
t 31 July 2
02
4.
Shar
e s
cheme
dilution
limi
t
s
Th
e C
omp
an
y com
pl
ie
s w
ith t
he gu
ide
li
ne
s l
aid d
o
w
n by th
e Inv
e
s
tme
nt A
s
s
oc
iati
on
. T
he
se r
e
s
tr
i
c
t the i
s
sue of n
e
w shar
e
s un
der a
ll t
he
Co
mp
any
’s shar
e sc
hem
es i
n any te
n-
ye
ar p
er
i
od to 10% of t
he i
ss
ue
d or
din
ar
y sh
ar
e c
api
ta
l and u
nde
r the C
om
pa
ny
’s discr
et
ion
ar
y
sc
hem
es to 5
% in a
ny ten
-y
ea
r pe
r
io
d. A
s at 31 July 2
0
2
2 th
e he
adr
o
om a
v
ail
ab
le un
der t
he
s
e lim
it
s w
a
s 8.
2
8
% a
nd 3.79
% r
e
sp
ec
t
i
ve
ly.
E
xecutive Direc
tors’ sh
areholdings (audit
ed)
Th
e t
abl
e bel
ow s
ho
w
s th
e sha
re
hol
din
g for e
ac
h E
xe
cu
ti
ve D
ir
ec
to
r ag
ain
st t
heir r
e
sp
ec
t
i
ve s
har
eh
ol
din
g re
qui
re
ment a
s at
31 July 2
0
2
2
.
Di
r
ec
t
or a
n
d P
l
an
Shareholding
requir
ement
Shares owned
outr
ight
Shares
su
bj
e
c
t to
per
form
ance
Vest
ed
shares in
holding
period
Shares
arising from
bonus def
err
al
S
av
e A
s
Yo
u E
a
r
n
(SA
YE)
Current
shareholding
(% o
f
requir
ement)
1
Shareholding
requir
ement
met
Pa
ul K
e
el
18
9,
9
0
0
s
h
a
r
e
s
25
,000
3
3
0
,95
9
0
5,378
1,
5
47
14
.
6%
No
Clar
e Scher
rer
91,
3
4
2
s
h
ar
e
s
2
5,
000
0
0
0
0
2
7.
4
%
No
1
S
h
ar
e
s o
w
ne
d o
u
tr
i
gh
t (
in
cl
u
di
n
g ve
s
te
d s
ha
r
e
s in h
o
ld
in
g p
er
iod
), a
n
d th
e n
et o
f in
co
m
e ta
x v
a
l
ue o
f sh
ar
e
s a
r
i
si
ng f
r
o
m b
on
us d
ef
e
r
r
a
l ar
e t
a
ken i
nt
o ac
co
u
nt f
or t
h
e sh
ar
e
h
ol
di
n
g
re
q
ui
r
em
e
nt
. E
x
ec
u
ti
v
e D
ir
e
c
to
r
s h
a
ve f
i
v
e y
e
ar
s f
r
o
m th
e d
ate o
f ap
p
o
int
m
en
t to m
ee
t t
he r
e
qu
i
re
d p
e
r
s
on
al s
h
ar
e
ho
l
di
n
g; P
au
l K
ee
l h
as u
nt
il 2
5 M
a
y 2
0
26 a
n
d Cl
a
r
e S
ch
e
r
r
er h
a
s un
ti
l
2
9 A
p
r
il 2
0
2
7 t
o me
e
t th
e r
eq
u
ir
e
me
nt
.
Th
er
e ha
ve b
e
en no c
han
ge
s to th
e Dir
e
c
tor
s’ shar
e
hol
din
gs b
et
ween 1 A
u
gus
t 2
0
2
2 an
d 1
6 S
epte
mbe
r 2
0
2
2
.
TS
R per
for
mance
Th
e fo
llo
w
in
g gr
a
ph sh
o
ws t
he C
omp
an
y’s total s
har
e
hol
de
r ret
ur
n (
T
SR
) p
er
for
m
anc
e ov
er t
he p
as
t ten y
ear
s comp
ar
ed to t
he F
T
SE
100 In
dex
. T
h
e F
TS
E 100 I
nde
x
, of w
hic
h the C
om
pa
ny ha
s be
en a m
emb
er th
r
oug
hou
t th
e pe
r
io
d, ha
s be
en s
el
ec
te
d to ref
l
ec
t th
e T
SR
per
for
mance of ot
he
r lea
din
g UK-l
is
te
d com
pa
nie
s
. T
he v
al
ue
s of hy
p
oth
etic
a
l £1
0
0 in
ve
s
tme
nt
s in th
e F
TS
E 100 I
nde
x an
d Smi
th
s Gr
oup
plc sh
ar
e
s at 31 July 2
0
2
2 w
er
e £187
.
2
5 an
d £1
91
.4
4 r
es
pe
c
ti
v
ely.
T
ot
al Shar
eholder
Return
Value of £100 invested on 31 July 2012
Smiths Group
FTSE100
2012
2013
£134.58
£129.86
£129.14
£121.19
£131.40
£136.72
£182.50
£195.66
£170.34
£195.53
£175.63
£158.07
£133.74
2014
2015
2016
2017
2018
2019
2022
2021
2020
£220
£200
£100
£120
£140
£160
£180
£149.00
£
187.25
£178.50
£
191.44
£176.01
£202.90
£120.21
£100
REMUNER
A
TION
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
84
Chi
ef E
xecu
tive’
s r
emun
er
atio
n for the last ten years
F
Y202
2
P Ke
el
F
Y2
021
P Ke
el
F
Y
20
21
A Reynolds
Smith
FY2020
A Reynolds
Smith
F
Y
2
0
19
A Reynolds
Smith
F
Y2
018
A Reynolds
Smith
F
Y
2
017
A Reynolds
Smith
F
Y
2
0
16
A Reynolds
Smith
F
Y
2
0
16
P Bo
w
m
an
F
Y
2
0
15
P Bo
w
m
an
F
Y2
0
14
P Bo
w
m
an
F
Y2
0
13
P Bo
w
m
an
T
otal remuneration
£000
1,
8
3
2
450
2
,7
5
3
2
,1
9
6
4
,1
3
0
3,25
1
2,
320
2,9
6
4
1,
6
0
2
4
,19
5
3
,9
12
3,86
4
Annual bonus
outcome
(% max
)
39%
76%
70%
17
%
41
%
42%
96%
89%
88%
80%
4
3%
39%
Common Inves
tment
Plan outcome
(% m
a
x
)
n
/a
n
/a
n
/a
n
/a
n/a
n
/a
n/a
n
/a
10
0
%
10
0
%
10
0
%
10
0
%
L
TIP outcome
(% m
a
x
)
n/a
n
/a
19
%
31%
75%
32%
n/a
n/a
18%
17
%
18
%
n
/a
Chief E
xec
uti
ve
pay
r
atio
s
Th
e
se r
atios s
et o
ut th
e com
pa
r
is
on b
et
wee
n the Ch
ief E
xe
cu
ti
v
e’
s re
mun
er
at
ion a
nd th
at fo
r emp
loy
e
es i
n the U
K wo
r
k
for
ce.
Total remuneration
Ye
a
r
Method
25th percentile ratio
Me
d
ia
n p
ay r
ati
o
75th percentile
r
atio
F
Y2022
Option B
5
8
:1
3
9
:1
2
6
:1
F
Y2
0
21
Option B
1
0
5
:1
7
5
:1
4
7
:1
F
Y2020
Option B
7
5
:1
5
3
:1
3
4
:1
F
Y
2
0
19
Option
B
1
3
3
:1
9
7
:1
6
5
:1
Salary
Ye
a
r
Method
25th percentile ratio
Me
d
ia
n p
ay r
ati
o
75th percentile
r
atio
F
Y2022
Option B
2
8
:1
2
0
:1
1
3
:1
F
Y2
0
21
Option B
3
5
:1
2
5
:1
17
:1
F
Y2020
Option B
3
1:1
2
2
:1
15
:1
F
Y
2
0
19
Option
B
3
6
:1
2
6
:1
1
8
:1
Sal
ar
y (£
)
Tota
l Re
m
un
er
ati
on (
£
)
Chief Executi
ve
875
,000
1,
8
3
2
,1
3
0
25th percentile employee
31,
2
0
0
31,
3
7
5
Median employee
44,000
4
7,
5
0
7
75th percentile employee
64,8
66
69,
4
2
0
Th
e p
ay dat
a fo
r emp
lo
ye
e
s in th
e UK wo
r
k
for
ce h
as b
ee
n c
alcu
l
ated u
sin
g Opt
ion B
, ba
se
d on t
he dat
a us
e
d for g
end
er p
ay r
ep
or
tin
g,
due to th
e av
a
il
ab
ili
t
y of data at t
he ti
me th
e A
nnu
al Rep
or
t w
as p
ubl
is
he
d. T
he g
en
der p
ay r
e
por
tin
g b
asi
s com
pr
i
se
s s
al
a
r
y and b
en
efi
t
s
as at 15 Apr
il 20
2
2 a
nd in
centi
v
e p
ay
m
ent
s p
ay
ab
le in r
e
sp
ec
t of F
Y
2
02
2
. T
he C
omm
it
te
e co
nsi
der
s that thi
s pr
o
v
ide
s an o
utco
me th
at is
re
pr
e
se
ntat
i
ve of t
he em
plo
y
ee
s at th
es
e p
ay l
ev
el
s
. I
t is a
ss
ume
d th
at th
e v
alue o
f emp
lo
ye
e be
nef
it
s i
s 7
.0% of b
as
e s
al
a
r
y.
Th
e w
or
k
fo
rce r
e
mune
r
at
ion f
ig
ur
e
s ar
e tho
se p
ai
d to UK em
plo
ye
e
s w
ho
se p
ay i
s at th
e 25
th
, med
ian a
nd 7
5th p
er
ce
ntile o
f pa
y for
the G
ro
up’
s UK em
plo
y
ee
s
. F
igu
re
s ar
e sh
o
w
n on bo
th th
e pr
es
c
r
ibe
d b
asi
s us
ing tot
al p
ay a
nd al
so s
al
ar
y o
nly w
hi
ch pr
o
v
id
es a u
sef
ul
ong
oin
g com
pa
r
is
on a
s it i
s a le
s
s vo
l
atil
e ba
sis
. T
he to
tal r
e
mune
r
at
ion r
atios h
av
e r
edu
ce
d pr
im
ar
il
y due to t
he CEO n
ot cur
rent
ly be
ing
in r
ece
ipt of LTIP p
ay
m
ent
s
. T
he C
omm
it
te
e mo
nito
r
s r
at
ios o
n an an
nua
l ba
sis
.
Percentage
change in D
irec
tor
s’ remuner
ation
F
Y2
0
2
1 to F
Y
2
0
2
2
FY2020 t
o FY2021
Sal
ar
y/
Fees
Benef
it
s
Bonus
S
alar
y/Fees
Ben
efit
s
Bonus
Chief Executi
ve Of
ficer
0%
239%
2
0
4%
n/a
n
/a
n/a
Chief Financial Of
f
icer
n
/a
n/a
n
/a
n
/a
n/a
n
/a
Outgoing Chief Financial Of
f
icer
2.5%
10
0
%
-39%
0%
-1.
0
%
308%
Non-executi
ve Director remuneration
2
.5%
10
0
%
n
/a%
-4.0
%
-1
0
0
%
n
/a
Av
er
age of a
ll e
mp
lo
y
ee
s
2.5%
2.5%
-3
4%
0%
0%
2
67
%
‘
All e
mpl
oy
ee
s’ is def
in
ed a
s all U
K Gr
oup e
mpl
oy
e
es
, 2
0
0 a
nd 196 emplo
ye
es a
t all g
r
ad
e
s in F
Y
2
0
2
2 an
d F
Y
2
0
21 r
es
pe
c
ti
v
ely.
Remun
er
at
ion f
or th
e Chi
ef E
xe
cut
i
ve O
f
fic
er w
as p
r
o
-r
a
ted fo
r se
r
vi
ce f
ro
m 2
5 May 2
0
21 - 31 Ju
ly 2
0
21 fo
r F
Y
2
0
21
.
REMUNER
A
TION
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
85
Re
l
ative impo
r
tance o
f spend on pay
Th
e t
abl
e bel
ow s
ho
w
s sh
ar
eho
ld
er di
st
r
ibu
ti
ons (
i
.e. di
v
i
den
ds a
nd sh
ar
e bu
y
b
ac
ks
) an
d tota
l emp
lo
ye
e pa
y ex
pe
ndi
tu
re f
or F
Y
2
0
21 an
d
F
Y
2
0
2
2, a
nd th
e pe
rc
ent
age c
han
ge
.
F
Y202
2
£m
F
Y
20
21
£m
Change
Sharehol
der distribu
tions
6
61
18
5
257%
Employe
e costs
- Continuing operations
823
–
N
/A
- T
ota
l Gr
o
up (
in
cl
ud
in
g Sm
it
hs M
ed
ic
a
l
)
930
1,
0
19
-
8
.7
3
%
E
xecu
ti
ve Dir
ec
tors’ ser
v
i
ce contr
a
c
t
s
Th
e C
omp
an
y’s pol
ic
y is that E
xecut
i
ve D
ir
ec
to
r
s ar
e no
r
ma
lly e
mpl
oy
ed o
n ter
m
s w
hic
h inc
lud
e a one
-
ye
ar r
ol
l
ing p
er
i
od of n
otic
e fr
o
m
the C
om
pan
y an
d six m
ont
hs’ noti
ce f
ro
m the i
ndi
v
i
dua
l
. T
he co
ntr
a
c
t inc
lud
e
s pr
ov
i
sio
n for t
he p
ay
m
ent of a p
re
dete
r
min
ed s
um in th
e
ev
ent of ter
minati
on of em
plo
y
me
nt in ce
r
tain ci
rc
um
st
an
ce
s (b
ut e
xclud
ing c
ir
cum
s
ta
nce
s w
he
re t
he C
omp
an
y is ent
it
led to d
ism
is
s
w
ith
ou
t com
pen
s
ati
on
). In ad
dit
ion to p
ay
m
ent of b
as
ic s
al
a
r
y, pensi
on al
lo
w
an
ce an
d ben
ef
it
s in r
e
sp
ec
t o
f the un
ex
pir
e
d po
r
tion of t
he
one
-
ye
ar no
tice p
er
i
od
, the p
r
ed
eter
mi
ne
d sum w
oul
d in
clu
de an
nual b
on
us an
d sha
re a
w
ar
d
s onl
y in r
es
pe
c
t of th
e per
iod th
ey h
av
e
se
r
ved
, p
ay
ab
le fo
ll
ow
i
ng th
e end o
f the r
el
ev
a
nt pe
r
for
man
ce p
er
io
d an
d sub
jec
t to t
he n
or
ma
l pe
r
for
man
ce co
ndi
ti
ons
.
Pa
ul Ke
el i
s emp
lo
ye
d und
er a s
er
v
ice c
ontr
ac
t w
ith t
he C
omp
an
y date
d and ef
fec
t
iv
e f
r
om 2
5 May 2
0
21. He be
c
ame a
n E
xe
cut
i
ve D
ir
ec
to
r
w
ith ef
fec
t f
r
om 2
5 May 2
021.
Cl
ar
e S
ch
er
r
er i
s emp
lo
ye
d und
er a s
er
v
ice c
ontr
ac
t w
ith t
he C
omp
an
y date
d 13 Ap
r
il 2
0
2
2 an
d ef
f
ec
ti
v
e 2
9 A
p
r
il 2
0
2
2
. Sh
e be
c
ame a
n
E
xec
ut
i
ve D
ir
ec
to
r w
ith ef
fec
t f
r
om 2
9 A
p
r
il 2
0
2
2
.
Th
e s
er
v
ice c
ontr
act
s for both E
xecu
ti
v
e Dir
e
c
tor
s m
ay b
e ter
min
ated b
y 12 months’ not
ice gi
v
en b
y th
e Co
mp
any o
r si
x mont
hs’ noti
ce
gi
ve
n by t
he Di
re
c
tor
. Th
e Co
mp
any m
ay e
lec
t to te
r
min
ate the c
ontr
ac
t by m
aki
ng a p
ay
m
ent in l
ie
u of noti
ce e
qual to t
he D
ir
ec
tor
’s
ba
se s
a
l
ar
y an
d ben
ef
it
s (
inc
lud
ing p
en
sio
n all
o
w
anc
e) in r
e
sp
ec
t of a
ny un
se
r
ve
d pe
r
io
d of not
ice
. T
he s
er
v
ice c
ontr
ac
t
s cont
ain s
pe
ci
fi
c
pr
ov
i
sio
ns e
nab
li
ng a r
ed
uc
ti
on in an
y ph
as
ed p
a
y
ment
s in l
ie
u of not
ice
, in the e
v
ent th
at the D
ir
ec
to
r f
ind
s alter
nati
ve e
mpl
oy
m
ent dur
ing
the n
otic
e per
iod. T
h
e se
r
v
ice co
ntr
act
s a
re a
v
ail
able fo
r v
iew
i
ng at t
he C
omp
an
y’s Regis
ter
e
d O
f
f
ice
.
Leaving and chan
ge-
of
-cont
rol prov
isions
W
hen d
eter
m
inin
g le
av
in
g ar
r
angem
ent
s fo
r an E
xe
cu
ti
v
e Dir
e
c
tor th
e Co
mmi
t
tee t
ake
s into a
ccou
nt any c
ontr
ac
tua
l agr
e
eme
nt
s
incl
udi
ng th
e pr
o
v
isi
ons o
f any i
ncent
i
ve a
r
r
an
ge
ment
s
, t
yp
ic
al ma
r
ket pr
act
ice a
nd th
e pe
r
for
man
ce an
d con
du
c
t of the i
ndi
v
i
dual
.
For t
hos
e in
di
v
id
ual
s reg
ar
de
d as ‘
b
ad le
av
er
s’ (e.
g. v
olu
nta
r
y re
si
gnat
ion o
r dis
mis
s
al f
or c
au
se
), annu
al b
onu
s aw
ar
d
s ar
e for
fei
ted
, and
out
s
t
an
din
g aw
ar
d
s und
er th
e LTIP au
tomat
ic
al
ly l
ap
se
. Def
er
r
ed b
on
us aw
ard
s ar
e for
fei
ted on d
ism
is
s
al fo
r c
aus
e.
A ‘
g
oo
d le
av
er
’ w
ill t
y
pic
al
ly r
em
ain el
ig
ibl
e for a p
ro
-
r
ate
d ann
ual b
onu
s aw
a
r
d, no
r
ma
lly to b
e p
aid af
ter the e
nd of th
e f
ina
nci
al ye
ar
.
Th
e C
ommi
t
te
e re
tai
ns di
sc
r
etio
n to pa
y th
e bon
us e
ar
ly a
nd n
ot to app
ly def
er
r
a
l w
her
e i
t wo
ul
d othe
r
wi
s
e app
ly, but w
oul
d do s
o onl
y
in com
pa
s
sio
nate c
irc
um
st
an
ce
s. D
efe
r
re
d b
onu
s aw
a
rd
s sh
all c
onti
nue in f
ul
l an
d ve
s
t on th
e or
i
gin
all
y antic
ip
ated v
e
st
ing d
ates
.
Al
ter
na
ti
ve
ly, in comp
as
s
ion
ate cir
cu
ms
t
ance
s
, th
e Co
mmi
t
tee m
ay d
eter
m
ine th
at aw
ard
s sho
uld v
e
s
t w
hen t
he p
ar
tici
pa
nt cea
se
s
emp
loy
m
ent
. Aw
a
r
ds in t
he fo
r
m of opt
ion
s ma
y be e
xer
cis
e
d in acc
or
da
nce w
i
th th
e r
ul
es of t
he ap
pl
ic
ab
le s
ch
eme
.
L
T
IP aw
a
r
ds w
il
l t
y
p
ic
al
ly v
es
t at th
e no
r
ma
l ve
s
tin
g date to th
e ex
te
nt that t
he a
ss
o
ciate
d pe
r
for
ma
nce c
ond
iti
on
s ar
e met
, bu
t w
ill
nor
mally b
e pr
o
-r
ated on t
he b
asi
s of ac
t
ual s
er
v
ic
e w
ith
in th
e per
fo
r
man
ce p
er
io
d. A
ny hol
din
g per
iod w
il
l or
din
ar
il
y cont
inu
e to app
ly.
Th
e C
ommi
t
te
e re
tai
ns di
sc
r
etio
n to ve
s
t the a
w
ar
d b
efor
e t
he en
d of th
e or
ig
ina
lly a
ntic
ipa
ted p
er
for
ma
nce p
er
i
od
, and to a
s
se
s
s
per
for
mance a
cco
rd
ing
ly, and to w
ai
v
e the c
ontin
uati
on of t
he h
old
ing p
er
i
od o
r to sho
r
ten it
s ap
pl
ic
ati
on
, but w
o
uld d
o so o
nly in
compassionate circumstance
s.
Ves
ted LTIP a
w
ar
ds w
h
ich ar
e s
ubj
ec
t to a ho
ld
ing p
er
i
od w
il
l or
di
nar
i
ly co
ntinu
e to be s
ubje
c
t to th
e ho
ldin
g pe
r
io
d, a
lth
oug
h the
Co
mmi
t
tee r
et
ain
s dis
cr
et
ion to w
a
i
ve th
e co
ntinu
atio
n of th
e hol
din
g pe
r
io
d or to sh
or
ten it
s a
pp
li
ca
tio
n but w
o
uld d
o so o
nly in
compassionate circumstance
s.
In c
as
es o
f de
ath or d
is
ab
ili
t
y
, indi
v
i
dua
l
s ar
e au
tom
atic
a
lly d
ee
me
d to be go
o
d lea
ve
r
s un
der t
he pl
an r
ule
s of th
e L
T
IP
. A
ll ot
her g
oo
d
lea
ve
r
s w
il
l be d
efi
ne
d at the d
is
cr
eti
on of th
e Co
mmi
t
te
e on a c
as
e
-b
y-
c
a
se b
as
is
.
In con
ne
c
tio
n w
ith t
he ter
minati
on of an E
xecu
ti
ve D
ir
ec
to
r’s contr
ac
t, th
e C
omp
an
y may m
ake a p
ay
me
nt on ac
cou
nt of acc
r
ue
d bu
t unt
aken
lea
ve
. T
he C
omp
an
y ha
s the p
o
we
r to enter into s
et
t
lem
ent ag
re
em
ent
s w
i
th Dir
e
c
tor
s a
nd to p
ay c
omp
en
s
atio
n to set
tle pote
ntial l
eg
al cl
a
ims
.
In ad
dit
ion
, an
d con
sis
tent w
i
th m
ar
ket pr
ac
tice
, in th
e ev
ent of t
he ter
m
inat
ion of a
n E
xe
cu
ti
v
e Dir
ec
to
r
, the Co
mp
any m
ay m
ake a cont
r
ibu
ti
on
tow
a
rd
s th
at ind
i
v
idu
al
’s leg
al fe
es a
nd fe
e
s for o
utp
l
ace
ment s
er
v
i
ce
s as p
ar
t of a ne
goti
ated s
et
t
lem
ent
. A
ny s
uch f
ee
s w
il
l be di
sc
lo
se
d as p
ar
t
of the d
et
ail of ter
m
inat
ion a
r
r
a
nge
ment
s.
In the e
v
ent of a ch
ang
e of co
ntr
ol
, LTIP a
w
ar
ds w
il
l v
es
t to th
e ex
te
nt tha
t eac
h of th
e per
for
mance c
ond
it
ion
s is m
et ba
se
d on t
he C
omm
it
te
e’
s
as
s
es
sm
ent of p
er
for
m
anc
e ov
er th
e pe
r
for
ma
nce p
er
i
od to th
e date of c
han
ge of c
ontr
ol
. For inter
n
al p
er
for
ma
nce m
ea
sur
e
s
, the C
om
mit
tee
may e
xer
cis
e i
t
s jud
gem
ent in d
eter
m
inin
g the o
utco
me b
as
e
d on it
s a
s
se
s
sm
ent of w
h
ethe
r or n
ot the p
er
for
m
anc
e con
di
tio
ns w
oul
d ha
ve b
ee
n
met to a gr
e
ater or l
es
s
er e
x
tent at t
he en
d of th
e fu
ll p
er
for
m
ance p
er
i
od
. Aw
a
r
ds w
il
l al
s
o no
r
ma
lly b
e pr
o
-r
ated to r
efl
ec
t t
he ti
me th
at ha
s
el
ap
se
d bet
we
en th
e gr
a
nt of th
e aw
ar
d a
nd th
e date of c
han
ge of c
ontr
o
l
. T
he C
omm
it
te
e r
eta
ins di
s
cr
etio
n to v
ar
y th
es
e pr
o
v
is
ion
s on a c
as
e
-
by-case bas
is.
REMUNER
A
TION
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
86
Non-
executive
Direc
tor
s
Single figure of annual remuneration (audited)
Sal
ar
y/fe
es
Benef
it
s
1
To
t
a
l
FY2
022
£000
F
Y
20
21
£000
FY2
022
£000
F
Y
20
21
£000
FY2
022
£000
F
Y
20
21
£000
Sir George Buckley
2
4
61
4
61
47
–
508
4
61
Bruno A
ngelici
–
24
-
–
-
24
Oli
vier Bohuon
–
24
-
–
-
24
Pa
m Ch
en
g
77
71
-
–
77
71
Da
me A
n
n Do
w
l
in
g
3
87
71
3
–
90
71
T
any
a Fr
at
to
81
71
-
–
81
71
Kar
in Hoeing
73
71
-
–
73
71
Bill
Seeger
4
14
6
11
9
-
–
14
6
119
Mark S
eligman
5
10
0
99
-
–
10
0
99
N
o
e
l
Ta
t
a
89
71
-
–
89
71
1
B
e
ne
f
it
s f
or t
h
e Ch
ai
r
m
an a
n
d No
n
-
ex
ec
u
ti
v
e D
ir
e
c
to
r
s r
e
l
at
e to r
ei
m
bu
r
s
e
d tr
ave
l-
r
el
ate
d an
d ot
he
r e
xp
e
n
se
s (
i
nc
lu
d
in
g f
l
ig
ht c
os
t
s w
h
e
r
e ap
pl
i
c
ab
l
e)
, w
hi
c
h ar
e g
ro
s
s
e
d-
u
p fo
r t
he U
K
in
co
m
e ta
x a
nd N
a
ti
on
a
l In
su
r
a
n
ce c
on
tr
i
b
ut
i
on
s p
ai
d b
y th
e C
om
p
an
y o
n th
e
ir b
eh
a
lf
.
2
S
ir G
e
o
r
ge B
uc
kl
e
y
’s fe
e is i
n r
e
sp
e
c
t of a
l
l hi
s r
e
sp
o
ns
ib
i
li
t
ie
s f
or S
m
it
h
s Gr
o
up
.
3
D
am
e A
n
n D
o
w
li
n
g’s fe
e co
m
pr
i
s
e
d he
r N
on
-
e
xe
cu
t
i
ve D
i
r
ec
t
or
’s fe
e a
nd h
e
r ad
d
it
i
on
al f
e
e fo
r c
ha
ir
i
n
g th
e S
c
ie
nc
e, S
u
s
t
ai
na
b
il
i
t
y & E
x
ce
l
le
nc
e C
o
mm
it
tee
.
4
B
il
l S
e
eg
e
r
’s fe
es c
o
mp
r
i
s
ed h
i
s No
n
-
ex
ec
u
ti
v
e D
ir
e
c
to
r
’s fe
e, h
i
s ad
d
it
i
on
al f
e
e fo
r ch
a
ir
i
n
g Rem
u
ne
r
a
ti
on & P
e
op
l
e C
om
mi
t
t
ee
, hi
s a
d
di
ti
o
na
l fe
e a
s S
en
i
or I
nd
e
pe
n
de
nt D
i
r
ec
t
or a
n
d a
su
pp
l
em
en
t
ar
y fe
e p
r
ov
i
d
ed t
o th
e C
ha
ir
s o
f e
ac
h of t
h
e C
om
mi
t
t
ee
s r
e
l
at
ed t
o th
e s
a
le o
f Sm
i
th
s M
ed
ic
a
l (
p
a
y
ab
l
e unt
i
l 31 J
an
ua
r
y 20
2
2
).
5
M
ar
k S
e
l
i
gm
an’s f
ee
s c
om
p
r
is
e
d h
is N
o
n-
e
xe
c
ut
i
v
e Di
r
e
c
to
r
’s fe
e, h
is a
d
di
t
io
na
l f
ee f
o
r ch
ai
r
i
ng t
he A
u
d
it & R
i
sk C
o
mm
it
tee a
nd a s
u
pp
l
em
en
t
ar
y fe
e p
ro
v
i
d
ed t
o th
e Ch
a
ir
s o
f e
ac
h of t
h
e
Co
m
mi
t
te
e
s r
el
ate
d to t
he s
a
le o
f S
mi
th
s M
e
di
c
al (
p
a
y
a
bl
e un
ti
l 31 J
an
u
ar
y 2
0
2
2
).
Non-
executive
Direc
tor fee
s
Non
-
exec
ut
i
ve D
ir
ec
to
r fee
s p
aid d
ur
in
g F
Y
2
0
2
2 and p
a
y
abl
e dur
i
ng F
Y
2
0
2
3 a
re s
ho
w
n be
lo
w. Th
e Remu
ner
ation & P
eo
ple C
om
mit
te
e
mad
e th
e dec
isi
on to fo
cu
s mo
re o
f the F
Y
2
0
2
3 sal
a
r
y incr
e
as
e bu
dg
et on th
os
e s
ec
tor
s of the w
or
k
fo
rc
e w
ho ar
e m
or
e imp
ac
te
d by
cur
r
ent i
nfl
ationa
r
y pr
es
s
ur
es
. I
t w
as d
eter
mi
ne
d that t
he NE
D fe
e incr
e
as
e sh
oul
d mir
r
o
r that a
w
ar
d
ed to s
eni
or em
plo
y
ee
s an
d lo
we
r
than t
hat of t
he w
id
er UK w
or
kfor
ce
. T
he fe
e in
cr
ea
se
s of 2
.5
% w
il
l be ef
fec
ti
v
e f
r
om 1 Oc
to
be
r 2
0
2
2.
F
Y2022
F
Y2023
Fe
e pa
y
a
bl
e to Ch
air
m
an o
f th
e Bo
ar
d f
or a
ll r
e
s
po
ns
ib
il
it
ie
s
£46
1
,250
£
4
6
6,9
2
0
Non-executi
ve Director base fee
£7
3,0
30
£
74
,
8
5
5
Ad
di
ti
on
al f
ee p
a
y
ab
le to t
he S
e
ni
or In
d
ep
en
de
nt Di
r
ec
to
r
£20
,000
£20
,000
Addit
ional fee for Commit
tee Chair
s
£20
,000
£20
,000
Supplementar
y fee
1
£
1
5,000
£
N
/A
Attendance allowance for each meet
ing outside the Non-executive Direc
tor’
s home con
tinent
£4,000
£4,
000
1
S
up
p
le
m
en
ta
r
y fe
e pr
o
v
i
de
d to t
h
e Ch
ai
r
s o
f th
e A
ud
i
t & Ri
s
k an
d Re
mu
n
er
ati
on & P
e
op
l
e Co
m
mi
t
te
e
s i
n re
s
p
ec
t o
f a
dd
i
ti
on
a
l wo
r
k
lo
a
d r
el
a
te
d to t
h
e se
p
ar
ati
on o
f S
mi
t
hs M
e
di
c
al f
r
o
m
th
e p
er
i
o
d 1 Fe
b
r
ua
r
y 20
2
1 to 3
1 Ja
nu
a
r
y 20
2
2
.
Share o
wn
er
ship guidance for Non-
executive
Direc
tor
s
Non
-
exec
ut
i
ve D
ir
ec
to
r
s ar
e en
cour
age
d to acq
uir
e sh
ar
es i
n the C
om
pa
ny w
i
th a v
alu
e of on
e tim
es t
he an
nua
l ba
se f
ee, o
v
er a f
i
ve y
ea
r
per
iod. T
h
e fi
v
e y
ear p
er
i
od i
s fr
o
m the l
ate
r of 1 Au
gu
st 2
0
21 o
r the d
ate of ap
po
intme
nt to the B
o
ar
d. In a
dd
iti
on
, the N
on
-e
xec
ut
i
ve
Dir
ec
to
r
s ar
e en
co
ur
a
ge
d to ret
ai
n a sha
re
hol
din
g of on
e tim
es t
he an
nua
l ba
se f
ee fo
r at le
as
t t
wo ye
ar
s af
ter the D
ir
ec
to
r le
av
es
the B
oa
r
d.
Non-executive Direc
tors’ sh
areholdings (audit
ed)
Th
e t
abl
e bel
ow s
ho
w
s th
e sha
re
hol
din
g for e
ac
h Non
-
exe
cu
ti
ve D
ir
ec
to
r
.
31 Ju
l
y 2
0
2
2
Sir George Buckley
26,591
Pa
m Ch
en
g
6,
000
Da
me A
n
n Do
w
l
in
g
5
,
813
T
any
a Fr
at
to
1,
5
0
0
Kar
in Hoeing
503
Richard Howes
1
-
Bill
Seeger
1
0
,000
Mark S
eligman
6,
000
N
o
e
l
Ta
t
a
6,
000
1
R
ic
h
ar
d H
o
w
es w
as ap
p
oi
nt
ed a
s a
n in
de
p
en
d
en
t No
n
-
ex
ec
u
ti
ve Di
r
e
c
to
r w
it
h ef
fec
t f
r
o
m 1 S
ep
te
m
be
r 2
0
2
2
. H
e w
a
s no
t a me
mb
e
r of t
h
e Bo
a
r
d du
r
i
ng F
Y
2
0
2
2
.
Fol
lo
w
in
g thei
r qua
r
ter
ly acq
uis
iti
on of O
r
din
ar
y Sh
ar
es
, un
de
r a sha
re p
ur
cha
s
e agr
e
eme
nt usin
g a f
ixe
d pr
op
or
tio
n of th
e af
ter
-t
a
x fee
s
re
cei
v
ed f
r
om t
he C
omp
an
y (
2
0
%
), Sir G
eo
r
ge Bu
ckle
y ac
quir
e
d 812 share
s on 1 A
ug
us
t 2
0
2
2 an
d K
ar
i
n Hoe
ing a
cqu
ir
ed 21
1 shar
e
s on
1 Au
gus
t 2
0
2
2
. T
he
re h
av
e be
en n
o fu
r
ther c
han
ge
s to the D
ir
ec
to
r
s’ shar
eh
ol
din
gs b
et
w
e
en 1 A
ugu
st 2
02
2 an
d 1
6 S
eptem
be
r 2
0
2
2.
REMUNER
A
TION
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
87
Chair
man’
s a
nd Non
-
executi
v
e Dir
ec
tor
s
’ let
ter
s of
appo
intment
Th
e Cha
ir
ma
n and t
he N
on-
e
xec
uti
v
e Di
re
c
tor
s s
er
v
e th
e Co
mp
any un
de
r let
ter
s of app
ointm
ent an
d do n
ot ha
ve c
ontr
act
s o
f se
r
vi
ce
or co
ntr
a
c
t
s for s
er
v
ic
es
. E
xcept w
her
e ap
po
inted at a G
en
er
al Meet
ing
, Dir
e
c
tor
s s
t
and f
or el
ec
ti
on b
y sh
ar
eho
ld
er
s at t
he f
ir
s
t A
GM
fol
lo
w
ing a
pp
ointm
ent
. T
he B
o
ar
d ha
s re
s
olv
e
d that a
ll D
ir
ec
tor
s wh
o ar
e w
ill
in
g to cont
inu
e in of
f
ic
e w
ill s
t
an
d for r
e
-
ele
c
tio
n by t
he
shar
e
hol
de
r
s ea
ch y
ea
r at the A
GM
. Ei
the
r pa
r
t
y c
an ter
m
inate t
he ap
po
intm
ent on o
ne mo
nth
’s wr
it
te
n not
ice an
d no c
omp
en
s
atio
n is
pa
y
abl
e in th
e ev
ent of a
n app
oint
ment b
ein
g ter
mi
nate
d ear
ly. The let
ter
s of app
oi
ntme
nt or oth
er ap
pl
ic
ab
le ag
re
em
ent
s ar
e a
v
ail
ab
le
for v
ie
w
in
g at th
e Co
mp
any
’s Regis
ter
ed O
f
fice
.
Non-executive Direc
tor
Da
te o
f ap
p
oi
nt
me
nt
Sir George Buckley
1 Au
gu
s
t 2
013
Pa
m Ch
en
g
1 Mar
c
h 2
0
2
0
Da
me A
n
n Do
w
l
in
g
1
9 September 201
8
T
any
a Fr
at
to
1 Jul
y 2
012
Kar
in Hoeing
2 A
pr
i
l 2
0
2
0
Richard Howes
1 September 20
22
Bill
Seeger
12 May 2
014
Mark S
eligman
16 M
a
y 2
0
16
N
o
e
l
Ta
t
a
1 Jan
ua
r
y 2
017
Statement of sharehol
der voting
Th
e t
abl
e bel
ow s
et
s o
ut th
e C
omp
an
y vot
ing o
utco
me of th
e ad
v
i
so
r
y re
s
olu
ti
on fo
r app
ro
v
al o
f the D
ir
ec
to
r
s’ Remune
r
ati
on Rep
or
t and
the a
ppr
o
v
al of th
e Di
re
c
tor
s’ Remun
er
ation P
ol
ic
y at t
he 2
0
21 A
GM:
Resolution
Vot
es f
o
r
% of v
ot
es
ca
s
t f
or
Vote
s
against
% of v
ot
es
cast agains
t
To
t
a
l
vot
es cast
Votes
withh
eld
(abstentions)
Direc
tors’ Remuneration Repor
t
315
,6
3
3
,
416
9
5
.
8
6%
1
3
,
615
,
3
3
8
4
.1
4
%
3
29
,248,754
4
6
9,
6
6
5
Direc
tors’ Remuneration Polic
y
2
82,034,4
58
8
6.
69
%
4
3
,
312
,
0
0
9
13
.
3
1%
325
,346
,46
7
4
,
37
1,9
5
2
Adv
iser
s to the Com
mittee
Dur
i
ng th
e ye
ar
, the C
ommi
t
te
e re
ce
i
ve
d mater
ial as
si
st
an
ce an
d ad
v
ic
e fr
om t
he Ch
ief E
xe
cu
ti
v
e O
f
f
ic
er
, the Chief P
eo
ple O
f
fic
er
, the
Glo
ba
l Rew
a
r
d Dir
ec
to
r
, Deloi
t
te L
L
P an
d Fr
es
hfi
el
ds Br
u
ck
hau
s De
r
ing
er L
L
P
. T
h
e Co
mmi
t
tee’s appointe
d in
dep
en
dent r
em
une
r
ati
on
ad
v
is
er i
s De
loi
t
te L
L
P
. T
he C
om
pa
ny S
e
cr
eta
r
y is s
ec
ret
ar
y to th
e C
ommi
t
te
e.
Th
e C
omp
an
y pai
d a tot
al fe
e of £1
67
,
8
0
0 to Delo
it
te L
L
P in r
e
l
atio
n to r
emun
er
a
tio
n ad
v
ic
e to the C
om
mit
tee dur
in
g the y
e
ar
. Fee
s wer
e
deter
m
ine
d on t
he b
asi
s of tim
e an
d exp
en
se
s
.
Dur
i
ng F
Y
2
0
2
2
, De
loi
t
te L
L
P pr
o
v
id
ed th
e C
ommi
t
te
e w
ith i
nfor
m
ati
on on m
ar
ket
, comp
l
ianc
e sup
po
r
t for thi
s ye
ar
’s Dire
c
tor
s’
Remuneration Repor
t
, adv
ice on remuner
ation of the
incoming Chief Financial Of
ficer
, the
shareho
lder consultation proce
ss and
the p
ro
v
is
ion o
f othe
r ad
v
ic
e r
el
atin
g to r
emun
er
ation g
ov
er
n
anc
e and m
ar
ket pr
ac
tice
. De
loi
t
te L
L
P is a f
oun
din
g mem
ber o
f the
Remun
er
at
ion C
on
su
lt
ant
s Gr
o
up and a s
ign
ator
y to it
s C
o
de of C
on
duc
t
. D
elo
it
te L
L
P p
ro
v
id
ed a
ddi
ti
ona
l ta
x ad
v
i
so
r
y se
r
vi
ce
s inc
lud
ing
glob
al c
or
p
or
ation t
ax c
omp
li
anc
e and e
mpl
oy
ee m
ob
il
it
y ad
v
ice, a
s we
ll a
s com
pa
ny s
ec
r
eta
r
ial
, inte
r
na
l audi
t co
-
so
urc
e, tr
ans
ac
t
ion
and c
ons
ult
an
c
y s
er
v
ice
s
. T
he C
om
mit
tee is s
ati
sf
ie
d th
at the a
d
v
ice p
r
ov
i
de
d by D
elo
it
te L
L
P i
s obj
ec
t
i
ve an
d in
dep
en
dent a
nd th
at the
y
do not h
av
e co
nne
c
tio
ns w
i
th th
e Gr
ou
p that m
ay i
mp
air th
eir in
dep
en
de
nce
.
Summar
y of
Remuner
ation Pol
ic
y
Full d
et
ail
s of t
he Rem
une
r
ati
on P
ol
ic
y f
or E
xe
cu
ti
v
e Dir
e
c
tor
s
, w
hi
ch w
a
s app
ro
v
ed b
y sha
r
eho
ld
er
s at t
he A
GM on 17 Nove
mbe
r 2
0
21,
ar
e set o
ut o
n the C
om
pa
ny
’s websi
te and i
n the 2
0
21 A
nnual Rep
or
t an
d Acc
ount
s o
n pa
ge
s 1
1
2 to 1
19
.
Th
e Di
re
c
tor
s’ Remun
er
ation Rep
or
t ha
s be
en ap
pr
o
ve
d by t
he B
oa
rd a
nd si
gne
d on i
t
s be
hal
f by
:
Bill Seeger
CH
A
IR
M
A
N O
F T
HE RE
MUNE
R
A
T
ION & P
EO
PL
E C
OM
MI
T
TE
E
22 S
eptember 202
2
REMUNER
A
TION
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
88
Comm
it
tee m
embershi
p and mee
ti
ngs
Th
er
e w
er
e thr
e
e sc
he
dule
d me
eti
ngs d
ur
in
g the y
e
ar
. T
h
e
m
e
m
b
e
r
s
of the C
om
mit
tee, the
ir bi
ogr
aphie
s a
nd at
ten
da
nce at m
eet
ing
s
dur
in
g th
e ye
ar c
an b
e foun
d on p
ag
e 5
8
, 59 an
d 6
3
.
Th
e Chi
ef E
xe
cu
ti
ve O
f
fic
er
, Chief Su
s
tai
nab
il
it
y Of
fice
r and
Gr
oup O
pe
r
at
ion
al E
xce
ll
enc
e Dir
e
c
tor at
ten
de
d ev
er
y m
eeti
ng
.
O
the
r mem
ber
s of seni
or m
ana
gem
ent w
er
e in
v
ited to a
t
tend
as neces
s
ar
y
.
Commit
tee p
er
for
mance ev
aluation
Th
r
oug
h the a
nnu
al Bo
ar
d e
v
alu
ati
on pr
o
ce
s
s (
pa
ge
s 6
4 a
nd 6
5
),
the B
oa
r
d conf
ir
med th
e ef
fe
c
ti
v
en
es
s of t
he C
omm
it
te
e in it
s r
o
le
of sup
po
r
ting th
e Bo
ar
d in c
omp
li
anc
e w
ith i
t
s r
emi
t.
Com
mit
tee
ac
tiv
i
tie
s
Th
e ma
in topi
c
s co
nsi
der
e
d at Co
mmi
t
te
e mee
tin
gs w
er
e as fo
ll
ow
s:
Sc
ience
Joh
n Cr
an
e, S
mit
hs D
etec
t
ion a
nd F
le
x-
T
ek u
pd
ated th
e
Co
mmi
t
tee o
n the
ir ne
w pr
o
duc
t d
ev
el
opm
ent (
NP
D) pr
o
ce
ss
e
s
and p
ipe
li
ne
s and h
o
w tech
no
log
y, inn
ov
at
ion a
nd su
s
ta
inab
il
it
y
wer
e in
fl
uen
cin
g the
ir ne
x
t ge
ner
ation of p
r
odu
c
t
s
. In Jul
y the
Commit
tee visited Flex-
T
ek’s
oper
ations in Por
tl
and, T
enne
sse
e,
and e
xp
er
i
ence
d th
e ne
w P
y
th
on l
in
e set
s a
t fi
r
s
t-hand
.
Und
er
s
t
and
ing e
ac
h of the d
i
v
isi
ons’ NP
D pr
oc
es
s
e
s fr
o
m ide
ati
on
to comm
er
ci
ali
s
ati
on of ne
w p
ro
du
c
t
s in sup
po
r
t of the Gr
o
up’
s
Gr
os
s V
i
t
al
it
y KP
I h
as b
een i
mpo
r
tant
. T
he C
om
mit
tee ar
e high
ly
eng
ag
ed in t
his ar
e
a an
d ar
e exci
ted b
y the p
r
od
uc
t op
po
r
tunit
ie
s
in the N
PD p
ipe
li
ne an
d by w
a
y
s in w
hi
ch th
e de
ve
lop
ment
processes can be
expedited
.
Sust
ainabilit
y
Smi
th
s ne
w Chief S
us
t
ain
abil
i
t
y O
f
fic
er jo
ine
d th
e bus
ine
s
s in
Jan
uar
y 2
0
2
2 an
d le
d the d
ev
el
opm
ent of th
e ne
w su
s
tai
nab
il
it
y
st
r
ate
g
y w
hic
h w
as ap
pr
o
ve
d by t
he B
oa
rd d
ur
in
g the y
e
ar
.
Se
e p
ag
e 27 f
or a su
mmar
y of t
he s
tr
ateg
y. The C
om
mit
tee
re
cei
v
ed r
e
gul
a
r upd
ate
s on th
e de
ve
lop
ment a
nd im
ple
ment
ati
on
of the s
tr
ateg
y an
d ho
w the d
i
v
isi
on
s we
re d
r
i
v
ing s
us
t
aina
bil
it
y
in the
ir bu
sin
es
s
e
s and e
mb
ed
ding i
t in th
eir n
ew p
r
odu
c
t
pip
el
ine
. T
he C
omm
it
te
e cont
inu
ed to m
oni
tor pr
o
gr
e
ss
aga
ins
t S
mit
hs su
s
ta
inab
il
it
y metr
i
c
s inc
lud
ing G
HG emi
s
sio
ns
,
renew
able elec
tr
icit
y, energy ef
ficienc
y
, water use and waste
disp
os
a
l
. T
he C
omm
it
te
e mo
nito
r
ed pr
o
gr
e
s
s tow
a
rd
s s
et
tin
g
Sc
ien
ce B
as
ed Target
s to a
chi
ev
e Net Ze
ro t
hr
ou
gh th
e SB
T
i.
Th
e C
ommi
t
te
e app
r
ov
ed t
he ne
w S
us
ta
ina
bil
it
y at Smi
th
s Repo
r
t
w
hich w
i
ll p
ro
v
id
e st
ake
hol
de
r
s w
it
h an enh
anc
ed un
de
r
s
ta
ndi
ng
of Smi
th
s app
r
oa
ch to E
S
G. T
he r
ep
or
t c
an be f
oun
d on o
ur
website w
w
w.smiths
.com.
E
xcell
ence
Th
e Gr
o
up Op
er
ationa
l E
xce
lle
nce D
ir
ec
to
r at
ten
de
d eac
h
Co
mmi
t
tee m
eet
ing to r
ep
or
t on th
e Sm
ith
s E
xce
ll
ence S
y
s
tem
(
SE
S
). T
he C
ommi
t
te
e we
re u
pd
ated o
n the r
ol
lo
ut a
nd em
be
ddi
ng
of pha
s
e t
w
o of S
E
S and h
o
w the b
usi
ne
s
s is t
ar
get
ing e
xcel
len
ce
thr
ou
gh r
e
sult
s
-
or
ie
nta
ted pr
o
ce
s
s imp
ro
v
eme
nt
s and t
he
conti
nuin
g de
ve
lop
me
nt of our t
al
ented p
eo
pl
e. SE
S supp
or
ts
our ab
il
it
y to inno
v
ate an
d del
i
v
er ne
w tec
hn
olo
g
y for c
us
tom
er
s
.
It al
so sup
po
r
ts t
he exe
cu
tio
n of ou
r sus
t
ain
abil
i
t
y a
nd Net Ze
r
o
st
r
ate
gie
s
. T
he C
omm
it
te
e w
as p
r
ov
id
ed w
i
th d
eep
-
di
v
e
s on S
E
S
fr
om F
l
ex-
T
e
k w
hic
h dem
on
st
r
ate
d ho
w SE
S w
as bein
g em
be
dde
d
in the
business.
Chair’
s St
atement
I am pl
eas
ed t
o pre
s
ent ou
r fir
s
t S
cien
ce, Sus
t
ain
abil
it
y
& E
xcelle
nce (
S
SE
) Co
mmit
te
e Repo
r
t
. S
SE ar
e cr
iti
ca
l
elem
ent
s in t
he exec
utio
n of our s
tr
a
teg
y.
Refl
ec
ti
ng th
e imp
or
ta
nce an
d co
mmi
tme
nt to thi
s topi
c, th
is y
ear
the B
oa
r
d app
r
ov
ed t
he cr
e
atio
n of th
e S
SE C
om
mit
tee to pr
ov
i
de
the B
oa
r
d w
ith e
nha
nce
d ov
er
sight of S
S
E mat
te
r
s in
clu
ding
the G
ro
up’
s inn
ov
a
tio
n and n
ew p
r
odu
c
t de
ve
lop
me
nt pr
oc
es
s
,
env
ir
o
nme
nta
l and s
us
t
aina
bil
it
y per
for
mance, a
nd th
e em
be
ddin
g
and deli
ver
y of operational excellence thro
ugh the Smiths E
xcellence
Sy
s
tem
.
Whe
n es
t
abl
i
shin
g the C
om
mi
t
tee, t
he B
oa
r
d ens
ur
ed t
hat
mem
ber
s bro
ught a r
ange of e
xp
er
i
enc
e on th
e S
SE r
e
l
ated top
ic
s
that f
al
l w
it
hin th
e C
ommi
t
te
e’
s re
mit
. I ha
ve h
ad a ke
en inter
e
s
t in
engineer
ing excellence, innov
ation and sustainabil
it
y thr
oughout
my c
ar
ee
r inc
lud
ing l
ea
der
ship r
ole
s a
s Hea
d of th
e En
gin
eer
ing
Dep
ar
tm
ent at th
e Uni
v
er
s
it
y of Cam
br
i
dge a
nd a
s Pr
e
sid
ent of t
he
Roy
al A
c
ad
em
y of En
gin
eer
ing. T
hi
s inter
e
st c
onti
nue
s th
r
oug
h my
cur
r
ent p
os
it
ion
s as D
epu
t
y Vi
ce Ch
anc
ell
or an
d Em
er
i
tus P
r
ofe
s
s
or
of Me
cha
nic
al E
ngi
ne
er
in
g at C
amb
r
id
ge. I w
a
s a me
mb
er of bp p
lc’s
S
afet
y and Su
s
ta
inab
il
it
y Com
mit
tee until Ma
y 2
0
21.
I am del
i
ghted to b
e joi
ne
d on th
e Co
mmi
t
tee b
y S
ir Ge
or
g
e
Buckl
ey, P
am Che
ng an
d K
ar
i
n Ho
eing
. Si
r Ge
or
ge h
as e
x
ten
si
v
e
exp
er
i
enc
e of le
adi
ng l
ar
g
e inn
ov
at
i
ve m
ulti
nati
on
al gr
oup
s w
hic
h
has b
ee
n in
st
r
ume
nta
l in ou
r con
sid
er
ation of m
at
ter
s r
el
ating to
ne
w pr
od
uc
t de
v
elo
pme
nt. P
a
m br
in
gs c
hal
len
ge to o
per
ation
al
excel
len
ce f
r
om he
r ro
le a
s E
xe
cu
ti
ve V
ice-
P
re
si
dent
, O
per
ation
s
and Inf
or
m
atio
n T
echn
olo
g
y at A
str
aZene
c
a plc
. F
in
al
ly, Ka
r
in’
s
cur
r
ent e
xec
ut
i
ve ex
p
er
ie
nce a
s Gr
ou
p E
S
G, Cult
ur
e an
d Busi
ne
s
s
T
ra
ns
for
mation D
ir
ec
to
r at B
A
E Sy
s
tem
s plc h
as b
ee
n inv
a
lua
ble a
s
we h
av
e de
vel
op
ed o
ur su
st
ai
nab
ili
t
y str
ateg
y and p
r
io
r
it
ie
s. We a
re
al
s
o al
l mem
be
r
s of th
e Remun
er
ation & Pe
op
le C
omm
it
te
e and
wer
e d
el
ighte
d to be a
ble to r
e
com
men
d the i
ntr
od
uc
ti
on of key a
nd
st
re
tchin
g sus
t
ain
abil
i
t
y m
ea
sur
e
s into ou
r inc
enti
v
e ar
r
angem
ent
s in
sup
por
t of Sm
it
hs s
tr
ateg
y.
O
v
er th
e nex
t year
, I loo
k for
w
a
r
d to the C
om
mit
te
e’
s cont
inu
ed
ov
er
s
ight of S
mit
hs S
S
E ag
en
da, i
ncl
udi
ng f
ur
the
r pr
es
ent
at
ion
s fr
om
our di
v
i
sio
ns a
nd Gr
o
up ex
pe
r
ts
. I am exc
ite
d by t
he op
po
r
tunit
ie
s
pr
es
ente
d b
y the in
no
v
ati
on an
d ne
w pr
o
duc
t
s w
e ha
ve i
n the p
ipe
li
ne
to supp
or
t our g
r
ow
th s
tr
ate
g
y. I wou
ld l
ike to tha
nk my c
ol
lea
gu
es
on th
e Co
mmi
t
tee f
or th
eir co
ntr
ib
ut
ion
s dur
i
ng th
e ye
ar an
d I lo
ok
for
w
ar
d to c
ontin
uin
g our w
or
k i
n F
Y
2
0
2
3.
Dame Ann Dowling
C
HAIR
O
F
TH
E
SC
IE
NC
E
, S
UST
AINAB
I
LITY &
E
XC
ELLEN
CE
CO
MM
ITTEE
S
CIE
NCE
,
S
U
ST
AI
NAB
I
LI
T
Y
&
E
XCEL
L
E
N
CE
C
O
MMI
T
T
E
E
REP
OR
T
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
89
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
O
the
r infor
mation t
hat i
s re
le
v
ant to th
e Dir
e
c
tor
s’ Repo
r
t, and w
h
ich i
s al
s
o in
cor
por
ate
d by r
ef
er
enc
e, c
an b
e foun
d as f
oll
o
ws:
Disclosure
Location
L
ikel
y f
ut
ur
e de
v
el
op
me
nt
s in t
he C
o
mp
an
y
St
r
ate
gi
c Rep
or
t p
ag
e
s 5 to 2
3
Director
s’
div
idend recommendation
Str
ateg
ic Re
po
r
t pa
ge 15
Research and develop
ment activ
ities
Str
ate
gi
c Rep
o
r
t pag
e
s 17 to 20
Em
pl
oy
m
ent o
f di
s
ab
le
d pe
r
s
on
s
Su
s
ta
in
abi
l
it
y at Sm
it
hs p
a
ge 3
3
Engagement with UK employee
s
Sus
t
ai
na
bil
i
t
y a
t Sm
it
hs p
a
ge 3
2
Engagement with supplier
s
, customer
s and others in a
busines
s relationship
with the company
Su
s
ta
in
abi
l
it
y at Sm
it
hs p
a
ge
s 4
1 to 4
4
Political donations
and expenditure
Political donations page 9
1
Greenho
use gas emissions, ener
gy consumption and energ
y efficienc
y
Su
st
a
ina
bi
li
t
y at Smi
th
s p
ag
e 3
0
Cor
por
ate Gover
nance Statement
G
o
ve
r
na
nc
e Rep
or
t p
ag
es 5
6 to 92
Dir
e
c
to
r
s du
r
in
g F
Y
2
0
2
2
Go
v
er
n
an
ce Re
po
r
t pa
ge
s 5
8 a
nd 5
9
Director appointmen
t
Go
v
er
n
an
ce Re
po
r
t pa
ge 6
8
Amen
dment of
Ar
ticles of As
sociation
G
ov
er
nanc
e Rep
o
r
t pag
e 6
8
Indemnities
Go
v
er
n
an
ce Re
po
r
t pa
ge 6
3
Change o
f control
Remuner
ation Repor
t page 86
Bo
r
r
o
w
in
gs an
d n
et de
bt n
ote p
ag
e 14
1
Direc
tors’ Responsibilit
y Statement
Statement of
Direc
tors’ responsibil
ities page 92
Disclosure of in
formation to the
auditor
Statement of
Direc
tors’ responsibil
ities page 92
Financial Instr
uments
Fin
anc
ia
l r
is
k ma
na
ge
me
nt n
ote p
ag
e
s 142 to 14
8
Share capital disclosures
Sh
ar
e c
ap
it
a
l note p
a
ge 15
5
Ac
qu
is
it
io
n of o
w
n sh
ar
e
s (
sh
ar
e b
u
y
ba
ck p
r
og
r
a
mm
e)
Sh
ar
e c
ap
it
a
l note p
a
ge 15
5
Director
s’
Power
s
Go
v
er
n
an
ce Re
po
r
t pa
ge 5
7
Sh
ar
e c
ap
it
a
l note p
a
ge 15
5
Po
st B
a
l
an
ce S
he
et E
ve
nt
s
Po
st B
a
l
an
ce S
he
et E
ve
nt n
ote p
ag
e 16
3
Ov
erse
as branches
Su
bs
idi
ar
y un
de
r
tak
in
g
s note p
a
ge 18
6
Th
e Str
ategic Re
po
r
t is a re
quir
e
ment of t
he C
omp
an
ie
s Ac
t 2
00
6
(th
e ‘
Ac
t’
) an
d c
an be f
oun
d on p
ag
es 5 to 5
5
. T
he C
om
pan
y ha
s
cho
se
n, in a
cco
r
dan
ce w
it
h se
c
ti
on 4
14C(1
1
) of the A
c
t
, to inc
lud
e
cer
tai
n mat
te
r
s in i
t
s Str
ategic Rep
or
t tha
t wo
uld ot
her
w
i
se b
e
dis
cl
os
ed in t
his D
ir
ec
to
r
s’ Repor
t
. T
he St
r
ate
gic Rep
or
t and
the D
ir
ec
to
r
s’ Repor
t tog
ethe
r ar
e th
e man
age
ment r
e
po
r
t for
the p
ur
p
os
es o
f Rule 4
.
1
.8
R of th
e Di
sc
los
ur
e Gui
dan
ce an
d
T
r
an
sparenc
y Rules.
DIRE
CTOR
S’
REP
OR
T
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
90
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Lis
ting Rules Disclosure
Infor
m
ati
on r
eq
uir
ed b
y th
e F
ina
nci
al C
ond
uc
t A
uth
or
i
t
y’
s L
is
ti
ng Ru
le
s c
an be f
oun
d as s
et ou
t be
lo
w. Th
er
e ar
e no f
ur
th
er di
sc
los
ur
e
s
re
qui
re
d in a
ccor
d
anc
e w
ith L
i
st
ing R
ule 9
.8
R
.
Listing Rule
Disclosure
Location
9
.8.
4R(1
)
Capitali
sed i
nt
erest
Discontinued operations note
page 1
57
9
.8.
4R(1
2
)(1
3)
Divid
end
wa
iver
D
i
v
id
en
d n
ote p
ag
e 156
9
.8.6R(1
)
Dire
ctors
’
int
erests
Re
mun
er
atio
n Rep
o
r
t pag
e
s 8
4 a
nd 8
7
9
.8.6R(
2)
Major shareholder
s’ in
teres
ts
Table o
n p
ag
e 91
9
.8.6R(3)(a)(b)
Go
in
g Co
nc
er
n a
nd V
iabi
l
it
y Sta
tem
ent
Str
ateg
ic Re
po
r
t pa
ge 5
4
9
.8.6R(4
)(a)
P
ur
c
ha
se o
f o
w
n sh
ar
e
s
Sh
ar
e c
ap
it
a
l note p
a
ge 15
5
9
.8.6R(5
)(6)(a)
and
(b)
UK Cor
por
ate Gover
nance Code complian
ce
G
o
ve
r
n
anc
e Rep
o
r
t pag
e 5
6
9
.8.6R(7
)
Un
ex
pi
re
d te
r
m of S
e
r
vi
ce C
on
tr
a
c
t
Remuner
ation Repor
t page 86
9
.8.6R(8)(a)
Stat
ement on
inclusion o
f TCFD
S
u
s
ta
in
abi
l
it
y at Smi
t
hs p
ag
e 3
5
9
.8.6R(9)
B
o
ar
d d
i
ve
r
s
it
y tar
g
et
s
G
o
ve
r
na
nc
e Rep
or
t pa
g
e 67
Poli
tic
al donati
ons
Th
e Gr
o
up did n
ot gi
v
e any m
on
ey fo
r po
li
ti
ca
l pur
p
os
e
s in th
e UK
, t
he E
U or o
ut
si
de of t
he E
U, nor d
id it m
ake an
y pol
i
tic
al d
on
atio
ns
to pol
i
tic
al p
ar
tie
s o
r othe
r po
li
tic
a
l or
gan
is
ati
on
s, o
r to any i
nd
epe
nd
ent el
ec
ti
on c
an
did
ates
, o
r inc
ur any p
ol
i
tic
al e
xp
en
dit
ur
e dur
i
ng
the y
ea
r
. In accor
da
nce w
i
th th
e US F
ed
er
a
l Ele
c
ti
on C
amp
ai
gn A
c
t, S
mit
hs p
ro
v
id
e
s admi
nis
tr
ati
ve s
upp
or
t to a fed
er
a
l Pol
i
tic
al
Ac
t
ion C
om
mit
tee (PAC
) in the U
S f
und
ed b
y th
e vo
lunt
ar
y p
ol
iti
c
al co
ntr
ib
uti
on
s of el
igi
ble e
mpl
oy
ee
s
. T
he PAC i
s not c
ontr
o
lle
d b
y
the C
om
pan
y an
d all d
ec
isi
on
s re
ga
r
ding t
he am
ount
s and re
ci
pie
nt
s of cont
r
ibu
ti
ons a
r
e dir
ec
te
d by a s
te
er
in
g co
mmi
t
tee c
omp
r
isi
ng
Go
ve
r
nme
nt Rel
ati
on
s emp
lo
ye
es a
nd r
ep
or
ted to al
l el
ig
ible to c
ontr
ibute to th
e PAC. C
ontr
i
bu
tio
ns to p
ol
iti
c
al or
g
anis
a
tio
ns r
ep
or
ted b
y
the PA
C dur
in
g F
Y
2
0
2
2 tot
all
ed $
8,0
00 (
F
Y
2
0
21
: $
3
0
,5
0
0).
Major shareh
older’
interes
t
s
A
s at 31 Ju
ly 2
0
2
2
, the C
om
pa
ny ha
d be
en n
oti
fi
ed un
de
r the F
in
an
cial C
on
duc
t A
u
tho
r
it
y’s Dis
clo
sur
e G
uida
nce & T
r
an
sp
ar
en
c
y Ru
le
s
,
or ha
d r
ece
i
ve
d dis
cl
os
ur
es p
ur
s
uant to th
e Co
mp
ani
es A
c
t 2
0
06, o
f the fo
ll
ow
i
ng h
old
ing
s of vo
tin
g r
ight
s i
n it
s sh
ar
e
s:
Number of voting
rights
Number of voting
rights
% o
f to
t
al v
o
ti
ng r
i
g
ht
s
Date of
notification
BlackRock
, Inc.
23.
3m
5
.9
31 Ma
y 2
018
Amer
ipr
ise Financial, Inc.
20.8m
5.3
3 Oc
to
be
r 2
018
Ar
temis I
nve
stment Management LLP
19.
8
m
5.0
14 Ap
r
il 2
0
2
0
Harr
is A
sso
ciates L.P
.
19.
7
m
5.0
2
2 Ju
ly 2
019
Do
dg
e & C
ox
19.
2
m
5.0
1
2 Ma
r
ch 2
0
2
2
Jupiter As
set Management
14.
8m
3.8
22 September 201
6
No f
ur
ther n
oti
fi
c
atio
ns w
er
e r
ec
ei
ve
d be
t
w
ee
n 1 Au
gu
st a
nd 16 Septem
be
r 2
0
2
2
B
y or
de
r of th
e Bo
ar
d
Mat
th
ew W
hy
te
CO
M
P
ANY
SE
C
RET
ARY
22 S
eptember 202
2
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
91
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
Statement
of Dir
ec
tor
s
’ r
e
spon
sibil
itie
s
in respect of the Annua
l R
epor
t and the
financial
st
atements
Th
e Di
re
c
tor
s a
r
e re
sp
on
sib
le fo
r pr
ep
ar
in
g th
e A
nnu
al Rep
or
t,
incl
uding
a Strat
egic R
eport, Directors’
Repo
r
t, Directors’
Remuneration Repor
t and Cor
por
ate Gover
nance Statement,
and t
he Gr
o
up an
d Pa
re
nt Co
mp
any f
in
anc
ial s
t
atem
ent
s in
accordance w
ith applic
able l
aw and regul
ations
.
Co
mp
any l
a
w r
equ
ir
es t
he D
ir
ec
tor
s to pre
pa
re G
r
oup an
d P
ar
ent
Co
mp
any f
in
anc
ial s
t
ateme
nt
s for e
ac
h fin
an
cial y
e
ar
. Under t
hat
l
aw th
e Dir
e
c
tor
s h
av
e ele
c
te
d to pr
ep
ar
e the G
r
oup f
in
anc
ial
st
atem
ent
s in a
cco
rd
anc
e w
ith i
nter
na
tio
nal a
cco
untin
g st
an
da
rd
s
in conf
or
mi
t
y wi
th th
e re
qui
re
ment
s o
f the C
om
pa
nie
s A
c
t 2
0
0
6
and a
ppl
ic
ab
le l
a
w an
d hav
e el
ec
te
d to pr
ep
ar
e th
e Pa
r
ent
Co
mp
any f
in
anc
ial s
t
ateme
nt
s in acc
or
da
nce w
i
th UK a
cco
untin
g
st
an
dar
d
s and a
ppl
ic
a
ble l
a
w (
UK G
ene
r
al
ly A
cce
pted A
cco
unti
ng
Pr
act
ice
), inc
lud
ing F
R
S 101 ‘Redu
ced D
is
cl
osu
re Fr
ame
wo
r
k
.
’
Und
er co
mp
any l
a
w th
e Dir
e
c
tor
s mu
s
t not ap
pr
o
ve th
e f
ina
nci
al
st
atem
ent
s un
le
s
s the
y ar
e s
ati
sf
ie
d th
at th
ey gi
v
e a tr
u
e an
d fa
ir
v
iew o
f the s
t
ate of af
fair
s of the Gr
ou
p and t
he P
ar
ent C
om
pa
ny
and of t
hei
r pr
of
it o
r los
s fo
r th
at per
iod. I
n pr
ep
ar
in
g ea
ch of t
he
Gr
oup a
nd P
ar
ent C
om
pa
ny f
ina
nci
al s
tate
ment
s
, t
he Di
re
c
tor
s
are
requ
ired
t
o:
–
S
el
ec
t s
uit
ab
le ac
cou
nting p
ol
ic
ie
s an
d the
n app
ly
them consistently;
–
Ma
ke jud
gem
ent
s an
d e
st
imate
s th
at ar
e r
ea
so
nab
le, r
el
ev
a
nt,
reliab
le and prud
ent;
–
F
or th
e Gr
oup f
in
anc
ial s
t
atem
ent
s
, st
ate w
h
ethe
r app
li
c
abl
e
UK-ad
opte
d inter
n
ati
ona
l acc
ounti
ng s
t
and
ar
ds h
av
e be
en
fol
lo
we
d fo
r the gr
o
up f
ina
nci
al s
tate
ment
s;
–
F
or th
e Pa
r
ent C
omp
an
y fi
nan
cial s
t
atem
ent
s
, s
tate w
h
ethe
r
app
li
ca
ble U
nite
d K
in
gd
om A
cco
untin
g St
and
ar
ds h
av
e be
en
fol
lo
we
d su
bje
c
t to any m
ater
i
al de
par
tu
re
s di
sc
lo
se
d and
exp
l
ain
ed i
n the P
ar
e
nt Co
mpa
ny f
in
anc
ial s
t
ateme
nt
s;
–
A
ss
e
ss t
he G
ro
up an
d P
ar
ent C
omp
an
y’s abil
it
y to conti
nue a
s
a goin
g co
nce
r
n, di
s
clo
sin
g, a
s app
li
c
abl
e, mat
ters r
e
l
ated to
going concern; and
–
Us
e th
e go
ing c
once
r
n b
asi
s of acc
ount
ing u
nle
s
s th
ey ei
th
er
intend to l
iq
uid
ate the G
r
oup o
r the P
ar
e
nt Co
mp
any o
r to cea
s
e
ope
r
at
ion
s
, or ha
ve n
o r
eal
i
st
ic alte
r
nat
i
ve b
ut to do s
o.
Th
e Di
re
c
tor
s a
r
e re
sp
on
sib
le fo
r keep
ing a
de
quate a
cco
untin
g
re
co
rd
s th
at ar
e su
f
f
ic
ient to sh
o
w and e
xp
l
ain th
e P
ar
ent
Company’s
tr
ansac
tions and disclose with reasonable accurac
y
at any t
ime t
he f
ina
nci
al po
si
tio
n of the P
a
re
nt Co
mp
any a
nd
ena
ble t
hem to e
nsu
re t
hat i
t
s fi
nan
cia
l st
atem
ent
s co
mp
ly w
it
h
the C
om
pan
ie
s A
c
t 2
0
0
6 an
d, a
s re
ga
rd
s th
e Gr
oup f
in
anc
ial
st
atem
ent
s
, A
r
tic
le 4 of th
e I
A
S Regul
at
ion
. T
he D
ir
ec
tor
s are
al
s
o r
es
po
nsi
ble f
or su
ch inter
nal cont
r
ol as t
he
y deter
mine is
nec
es
s
a
r
y to enab
le th
e pr
ep
ar
ation of f
in
anc
ial s
t
atem
ent
s th
at
ar
e fr
e
e fr
om m
ater
i
al mi
ss
t
atem
ent
, w
heth
er du
e to fr
aud or
er
r
or an
d ha
ve a g
ene
r
al r
e
sp
on
sib
il
it
y for ta
kin
g su
ch s
teps a
s
ar
e re
as
on
abl
y op
en to th
em to s
afe
gua
r
d the a
s
set
s o
f the G
r
oup
and to p
re
v
ent an
d dete
c
t fr
aud an
d othe
r ir
r
eg
ul
ar
i
ti
es
.
Th
e Di
re
c
tor
s a
r
e re
sp
on
sib
le fo
r the m
ainten
anc
e and i
ntegr
i
t
y
of the corpor
ate governance and financial in
form
ation included
on th
e Co
mp
any
’s webs
ite. L
eg
isl
ation in t
he Uni
ted K
ingd
om
go
ver
ning th
e pr
ep
ar
ation an
d dis
s
em
inati
on of t
he f
ina
nci
al
st
atem
ent
s ma
y di
f
fe
r fr
o
m leg
isl
a
tio
n in oth
er jur
i
s
dic
ti
on
s.
In accordance with Disclosure Guidance and T
r
ansparenc
y Ru
le
4.
1
.
1
4R
, th
e fi
nan
cial s
t
atem
ent
s w
il
l for
m p
ar
t of th
e ann
ual
financial repor
t prepar
ed using the single electronic repor
ting
for
m
at und
er th
e T
r
ans
pa
re
nc
y Dire
c
ti
v
e Eur
op
ea
n Sin
gle
Elec
tronic Format (‘E
SEF
’
) Regulation. The auditor’
s repor
t
on th
es
e f
ina
nci
al s
tate
ment
s p
r
ov
i
de
s no a
s
sur
ance o
ver t
he
E
SE
F for
m
at
.
Direc
tors’ respon
sibilit
y st
atement
Ea
ch of t
he Di
re
c
tor
s (w
ho a
re l
is
te
d on p
ag
es 5
8 and 59
) conf
ir
m
s
that to t
he b
es
t of hi
s or h
er kn
o
w
le
dge:
–
T
h
e fi
nan
cial s
t
atem
ent
s
, w
hic
h ha
ve b
ee
n pr
ep
ar
ed i
n
acco
r
dan
ce w
it
h the a
ppl
ic
a
ble s
et of a
cco
untin
g s
tan
da
r
ds
, gi
ve
a tr
ue a
nd f
air v
i
ew o
f the a
s
set
s
, l
ia
bil
it
ie
s, f
in
anc
ial p
os
iti
on an
d
pr
of
it o
r los
s of t
he C
omp
an
y and t
he un
de
r
tak
ing
s inc
lud
ed in
the consolidation taken as
a whole;
–
T
h
e Str
ategic Rep
or
t and G
r
oup D
ir
ec
to
r
s’ Repor
t, to
get
her t
he
man
age
ment r
e
por
t
, inc
lud
es a f
ai
r re
v
ie
w of th
e de
ve
lop
me
nt
and p
er
for
m
anc
e of the b
us
ine
s
s and t
he p
osi
ti
on of th
e
Co
mp
any an
d th
e und
er
tak
in
gs in
clu
de
d in th
e con
so
l
idat
ion
take
n as a w
ho
le, to
get
her w
i
th a d
es
cr
iption o
f the p
r
inc
ip
al
r
isk
s a
nd un
cer
tai
ntie
s th
at th
ey f
ac
e; and
–
A
s at the da
te of thi
s A
nnu
al Rep
or
t and f
in
anc
ial s
t
ateme
nt
s,
the
re i
s no r
el
ev
a
nt aud
it info
r
mat
io
n of w
hic
h the C
om
pan
y
’
s
audi
tor i
s una
w
ar
e. E
a
ch Di
re
c
tor h
as t
aken al
l th
e ste
ps h
e or
she s
hou
ld ha
v
e take
n as a Di
re
c
tor i
n or
de
r to make him
s
elf o
r
her
self a
w
ar
e of an
y r
ele
v
ant a
udi
t info
r
mati
on an
d to e
st
ab
li
sh
that t
he C
omp
an
y’s audi
tor is a
w
ar
e of t
hat inf
or
ma
tio
n.
We con
sid
er th
e A
nn
ual Rep
or
t and f
in
anc
ial s
t
atem
ent
s
, ta
ken
as a w
ho
le, i
s f
air
, bal
an
ce
d and u
nde
r
s
ta
nd
abl
e and p
ro
v
id
e
s the
infor
mation n
ec
es
s
a
r
y for sh
ar
eh
old
er
s to a
s
se
s
s th
e Gr
ou
p’
s
pos
it
ion a
nd p
er
for
ma
nce
, bus
ine
s
s mo
de
l and s
tr
ateg
y.
Sig
ne
d on be
hal
f of th
e Bo
ar
d of D
ir
ec
to
r
s:
Paul Keel
Clare S
cherrer
CHIE
F E
XEC
U
T
I
V
E O
F
F
ICE
R
CH
IEF F
IN
A
NCI
A
L O
FF
I
CE
R
22 S
eptember 202
2
01
OVE
RVIEW
02
ST
RATEGIC REPORT
03 GOVERNA
NCE
04
FI
NANCIAL
ST
A
TEM
ENTS
92
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
INDE
P
E
ND
E
N
T
AUD
I
TOR
’S
R
E
P
O
R
T
to t
he mem
bers of Smit
hs Group p
lc
Ind
epe
nd
ent au
dito
r’s rep
or
t
9
3
Co
ns
ol
id
ated pr
imar
y s
tate
ment
s
Consol
idated income
st
atemen
t
1
0
3
Conso
lidated statement of
compreh
ensiv
e income
104
Consol
idated balance sheet
1
05
Co
ns
ol
id
ated s
t
ateme
nt of cha
ng
es i
n equ
it
y
106
Consoli
dat
ed
cash-fl
ow sta
tem
ent
107
Accounting policies
108
Note
s to the a
cco
unt
s
1
Se
gme
nt info
r
mati
on
1
1
6
2
Ope
r
ati
ng co
s
t
s
120
3
Non
-s
tat
uto
r
y pr
of
it m
ea
sur
e
s
1
21
4
Net f
inan
ce co
s
t
s
1
2
3
5
Ear
nings p
er s
har
e
1
24
6 T
axat
ion
124
7 Emp
lo
ye
e
s
1
27
8
Retir
eme
nt ben
ef
it
s
1
2
8
9
Emp
loy
e
e sha
re s
ch
eme
s
1
3
3
10
Inta
ngi
ble a
s
set
s
134
1
1
Imp
air
m
ent te
st
ing
135
1
2
Pr
op
er
t
y, pl
ant a
nd e
quip
me
nt
137
13
Rig
ht of us
e as
s
et
s
1
3
8
14
F
inan
cia
l as
s
et
s – oth
er in
ve
s
tme
nt
s
138
1
5 Inv
entor
ies
1
3
8
1
6
T
ra
de an
d oth
er r
ec
ei
v
ab
le
s
139
1
7
T
ra
de an
d oth
er p
ay
a
ble
s
140
18
Bor
ro
w
ing
s and n
et de
bt
140
1
9
F
inan
cia
l r
is
k man
age
me
nt
142
2
0
Der
iv
ati
v
e f
ina
nci
al in
st
r
um
ent
s
148
21
Fair v
al
ue of f
ina
nci
al in
st
r
um
ent
s
1
5
0
2
2 Co
mmi
tme
nt
s
1
51
2
3
Pr
o
v
isi
on
s and c
ontin
ge
nt li
abil
i
tie
s
1
5
1
24
Sha
re c
a
pit
al
155
25 Div
idends
1
56
26 Re
se
r
ve
s
1
5
6
27
D
is
cont
inu
ed o
per
ation
s an
d
bus
ine
s
s
es h
eld f
or s
al
e
1
57
2
8
Ca
sh
-f
lo
w
1
59
2
9
A
l
ter
nat
i
ve p
er
for
m
anc
e me
asu
re
s an
d
key pe
r
for
ma
nce in
dic
ato
r
s
160
3
0
P
os
t B
al
an
ce Sh
ee
t Ev
ent
s
1
6
3
31
Au
dit e
xempt
ion t
aken f
or su
bsi
diar
ies
1
6
3
Unau
di
ted f
i
ve
-
ye
ar Gr
o
up f
ina
nci
al r
ec
or
d
164
Unau
di
ted U
S dol
l
ar p
r
ima
r
y st
atem
ent
s
165
Smi
th
s Gr
oup p
lc C
omp
an
y acc
ount
s
Compan
y balance she
et
1
71
Co
mp
any s
t
ateme
nt of ch
ang
es i
n eq
uit
y
1
72
Co
mp
any a
ccou
ntin
g po
li
cie
s
1
73
Note
s to the C
om
pa
ny ac
count
s
1
7
6
Subsidiar
y under
tak
ings
1
8
0
0
4
Financ
ial s
tatement
s
9
3
-1
8
7
1 Our
opinio
n is
unmo
dif
ied
We hav
e au
dite
d th
e fi
nan
cial s
t
atem
ent
s of S
mit
hs G
ro
up pl
c
(“
th
e Co
mp
any
”
) for t
he y
ear e
nd
ed 31 Jul
y 2
0
2
2 w
hic
h com
pr
i
se
the c
ons
ol
i
dated i
nco
me s
t
ateme
nt, c
ons
ol
id
ated s
t
atem
ent of
comprehensi
ve income, consolidated balance sheet, consolidated
st
atem
ent of c
han
ge
s in e
qui
t
y, con
so
li
date
d c
ash
-f
lo
w s
tate
ment
,
Co
mp
any b
al
an
ce sh
eet
, C
omp
an
y s
tate
ment of c
han
ge
s in e
qui
t
y,
and t
he r
el
ate
d note
s
, inc
lud
ing t
he ac
count
ing p
ol
ic
ie
s on p
ag
es
108 to 1
1
5.
In our
opinion:
–
the f
ina
nci
al s
ta
tement
s giv
e a tr
u
e and f
ai
r v
ie
w of th
e st
ate of
the G
ro
up’
s an
d of the P
a
re
nt Co
mp
any
’s af
fa
ir
s a
s at 31 July
2
0
2
2 and of t
he G
ro
up’
s pr
of
it f
or th
e ye
ar th
en en
de
d;
–
the Gr
o
up f
ina
nci
al s
tate
ment
s h
av
e be
en p
ro
pe
r
ly
pr
ep
ar
ed i
n acco
r
dan
ce w
it
h UK-a
dop
ted inte
r
nati
on
al
acco
unti
ng
s
t
and
ar
ds;
–
the p
ar
ent C
omp
an
y f
inan
cia
l st
atem
ent
s h
av
e be
en p
ro
pe
r
ly
pr
ep
ar
ed i
n acco
r
dan
ce w
it
h UK ac
count
ing s
t
an
dar
d
s, i
ncl
udin
g
FR
S 101 Redu
ce
d Dis
cl
os
ur
e Fr
am
ew
or
k; and
–
the f
ina
nci
al s
ta
tement
s have b
ee
n pr
ep
ar
e
d in acc
or
da
nce w
i
th
the r
e
quir
em
ent
s of t
he C
omp
ani
e
s Ac
t 2
0
06
.
Basis f
or opinion
We con
duc
te
d our a
udi
t in ac
cor
da
nce w
i
th Inte
r
nat
ion
al
Sta
nd
ar
ds o
n Au
dit
ing (
UK
) (
“I
S
A
s (UK
)”
) an
d app
li
ca
ble l
aw. Our
re
sp
on
sib
il
iti
es a
re d
e
sc
r
ib
ed b
elo
w. We be
li
ev
e that t
he au
di
t
ev
id
en
ce we h
av
e obt
ai
ne
d is a su
f
f
ic
ient a
nd ap
pr
op
r
iate b
as
is fo
r
our op
ini
on
. Our a
udi
t opi
nio
n is co
nsi
s
tent w
it
h our r
ep
or
t to the
Au
dit & R
isk C
om
mit
tee.
We wer
e f
ir
s
t a
ppo
inte
d as au
dito
r by t
he sh
ar
eh
ol
der
s o
n
13 Nove
mbe
r 2
019
. T
he p
er
i
od of tot
al un
inter
r
upted en
ga
gem
ent
is for t
he th
r
ee f
in
anc
ial y
ear
s ende
d 31 July 2
0
2
2
. We h
av
e
fulfil
led our ethical responsibil
ities under
,
and we remain
ind
epe
nd
ent of th
e Gr
ou
p in acc
or
da
nce w
i
th
, UK ethi
c
al
re
qui
re
ment
s i
ncl
udi
ng th
e F
RC Et
hic
al S
ta
nd
ar
d as ap
pl
ie
d to
li
ste
d pub
l
ic inter
e
s
t enti
tie
s
. No n
on
-au
dit s
er
v
ic
es p
r
ohib
ite
d by
that S
ta
nda
r
d we
re p
r
ov
id
ed
.
INDEPENDENT A
UDITOR’S REPORT
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
93
Recove
r
abi
lit
y of goo
dw
i
ll in re
sp
ec
t of the Smit
hs
Dete
c
tion c
a
sh ge
ner
a
ting u
nit (C
GU) (Gr
oup) (£
6
4
4
mill
ion (
2
021
: £6
1
0 milli
on)) Ref
er to p
ag
e 71 (
A
udi
t & Ris
k
Com
mit
te
e Repo
r
t
), p
age 108 (a
ccounti
ng po
lic
ie
s) and
page 1
35 (financial
disclosures)
Risk vs 2021
: increase
The r
isk – sub
jec
tive estimat
e and forecast
based ass
essment
Th
e Gr
o
up ho
lds a s
ign
if
ic
ant a
mou
nt of go
od
w
il
l
, e
sp
eci
all
y in r
el
at
ion
to the S
mit
hs D
etec
t
ion c
a
sh ge
ner
ating u
nit (
CG
U). T
h
e v
alu
e in
us
e ca
lcu
l
atio
n for t
he S
mit
hs D
etec
t
ion C
GU, w
hi
ch r
epr
e
s
ent
s
the e
s
tim
ated r
e
co
ver
able a
mou
nt, i
s subj
ec
t
i
ve du
e to the i
nhe
r
ent
uncer
taint
y involv
ed in fore
c
astin
g and disco
unting es
timated fut
ure
ca
sh f
lo
w
s (
sp
ec
if
ic
al
ly th
e key a
s
sump
tio
ns - di
sc
ount r
ate, pr
oje
c
ted
cos
t inf
l
ati
on an
d 5
-
ye
ar r
ev
en
ue gr
o
w
th r
ate).
A
s p
ar
t of our r
isk as
s
es
s
ment
, w
e deter
m
ine
d th
at the v
a
lue i
n
us
e of the C
GU h
as a h
igh d
egr
e
e of e
st
imat
ion u
ncer
t
aint
y
, w
it
h a
potent
ial r
ange of r
e
as
on
abl
e outc
ome
s gr
e
ater th
an ou
r mater
iali
t
y
for th
e f
inan
cia
l s
tate
ment
s a
s a w
ho
le, an
d po
s
sib
ly ma
ny tim
e
s
that a
mou
nt.
Th
e f
ina
nci
al s
tate
ment
s (
no
te 1
1) dis
cl
os
e the s
en
si
ti
v
it
y es
ti
mate
d
by m
ana
gem
ent
. T
he
s
e dis
cl
osu
re
s gi
v
e r
ele
v
ant i
nfor
m
ati
on ab
ou
t
the e
s
tim
atio
n unc
er
tai
nt
y in
clu
din
g the r
isk of a r
edu
c
tio
n in th
e
hea
dr
o
om or n
ee
d for a
n imp
air
m
ent a
s a re
su
lt of a r
ea
s
ona
bly
pos
s
ibl
e cha
nge i
n one o
r mo
re o
f the ke
y as
su
mpti
on
s us
ed in t
he
v
alue i
n us
e c
alc
ul
ati
on fo
r thi
s CG
U.
O
v
er
v
ie
w
Materialit
y:
gr
oup f
in
anci
al s
t
ateme
nt
s
as a w
ho
le
£1
6 mill
io
n (
2
0
21
: £1
1.3 mil
l
ion
).
5.
1
% of Gr
oup p
r
ofi
t b
efor
e t
ax
ati
on f
ro
m cont
inui
ng op
er
ation
s no
r
mal
i
se
d to excl
ude t
he
ef
fe
c
t of sp
ec
if
ic i
tem
s as ex
pl
a
ine
d in s
ec
t
ion 5 of t
his r
ep
or
t
.
(
2
0
21
: 4.
5% of G
r
oup p
r
ofi
t b
efor
e t
ax
ati
on f
ro
m cont
inui
ng op
er
ation
s no
r
mal
i
se
d to
exclu
de th
e ef
f
ec
t of s
pe
ci
fi
c item
s an
d by a
ve
r
a
ging o
v
er th
e l
as
t th
re
e ye
ar
s).
Cover
age:
82
% (
2
0
21
: 7
0
%) of G
r
oup p
r
ofi
t be
for
e t
ax
atio
n f
ro
m cont
inui
ng op
er
ation
s.
Key
audit
mat
ter
s
vs 202
1
Reco
ve
r
ab
il
it
y of Go
od
w
il
l in r
e
spe
c
t of th
e Sm
ith
s De
tec
ti
on c
as
h gen
er
ating uni
t (C
GU
) (G
r
oup
)
▲
Es
timation of
litigation prov
isions for asbestos in John Crane, Inc. (Group)
‹
›
Valu
atio
n of UK def
in
ed b
en
ef
it S
IP
S’s pen
sio
n sc
hem
e li
abi
li
tie
s an
d acc
ount
ing of s
et
t
lem
ent lo
s
s in T
IG
P
S
pen
si
on s
che
me (
P
ar
ent C
omp
an
y)
▼
2 Cha
nges to K
ey Audit M
atters
A
s at 31 Ju
ly 2
0
21, we ident
if
ie
d a key a
udi
t mat
te
r (Gr
o
up) in
re
l
atio
n to the r
e
co
ve
r
ab
il
it
y of cap
it
al
is
e
d de
vel
op
ment c
os
t
s
for th
e Intel
li
f
us
e pr
o
gr
am
me w
i
thin a
s
se
t
s hel
d for s
a
le in th
e
Smi
th
s Med
ic
al di
v
i
sio
n. F
ol
lo
w
ing t
he s
al
e of the S
mi
ths M
ed
ic
al
di
v
isi
on du
r
ing t
he y
ea
r
, t
his i
s no l
ong
er a r
el
ev
ant r
isk of mate
r
ial
mis
s
t
ateme
nt and t
her
efo
r
e no lo
ng
er a key a
udi
t mat
te
r
.
A
s at 31 Ju
ly 2
0
21, we ident
if
ie
d a key a
udi
t mat
te
r (P
ar
e
nt
Co
mp
any
) in r
el
at
io
n to def
ine
d be
nef
it p
en
sio
n l
iabi
li
tie
s w
hi
ch
incl
ud
ed b
oth th
e T
IGP
S and S
IP
S p
en
sio
n sc
hem
es
. F
oll
o
wi
ng th
e
exec
ut
ion of a b
u
y
-in in
sur
ance p
ol
ic
y for the T
I
GP
S s
ch
em
e
dur
in
g th
e cur
r
ent y
e
ar
, this is n
o lon
ge
r a re
le
v
ant r
i
sk of
mater
i
al mi
ss
t
atem
ent an
d the
r
efor
e no l
on
ger a ke
y aud
it m
at
ter
.
We conti
nue to r
e
co
gnis
e UK S
IP
S p
en
sio
n sc
hem
e as a ke
y aud
it
mat
ter (
P
ar
ent C
om
pa
ny
) in th
e cur
rent y
ea
r
. I
n ad
dit
ion
, th
e audi
t
of the b
u
y-
in tr
ans
ac
t
ion i
s con
si
der
e
d to be an a
re
a w
hi
ch ha
d
sign
if
ic
ant ef
fec
t on o
ur o
ve
r
al
l au
dit s
tr
ateg
y and a
ll
oc
ati
on of
re
s
our
ce
s in p
l
ann
ing a
nd co
mpl
etin
g the a
udi
t an
d is th
er
efor
e
incl
ud
ed a
s a key au
dit m
at
ter
.
3
K
ey aud
it matte
r
s: ou
r asses
smen
t
of r
isk
s of m
aterial mi
ss
t
atement
Ke
y aud
it ma
t
ter
s ar
e t
hos
e m
at
ter
s t
hat
, in ou
r pr
ofe
s
sio
nal
jud
gem
ent
, we
re o
f mos
t si
gni
f
ic
anc
e in th
e audi
t of th
e f
inan
cia
l
st
atem
ent
s an
d inc
lud
e th
e mos
t s
igni
f
ic
ant as
s
e
s
se
d r
is
k
s of
mater
i
al mi
ss
t
atem
ent (
w
het
her o
r not du
e to f
r
au
d) i
dent
if
ie
d by
us
, inc
lud
ing t
hos
e w
hi
ch ha
d th
e gr
eate
s
t ef
fe
c
t on: th
e ov
er
all
audi
t s
tr
a
teg
y; t
he al
lo
c
atio
n of r
es
ou
rc
es i
n the a
udi
t; an
d dir
ec
t
ing
the ef
for
ts of t
he en
ga
gem
ent te
am. We s
umm
ar
i
se b
elo
w th
e key
audi
t mat
ter
s, i
n de
cr
ea
sin
g or
de
r of aud
it s
igni
f
ic
anc
e, in ar
ri
v
in
g
at our au
di
t opi
nio
n abo
v
e, tog
ethe
r w
it
h our ke
y aud
it pr
o
ce
dur
e
s to
add
re
s
s th
os
e mat
ter
s and
, as r
e
quir
e
d for p
ubl
ic inte
re
s
t ent
iti
es
,
our r
e
sul
t
s fr
om t
ho
se p
r
oce
dur
e
s
. T
he
se m
at
ter
s wer
e ad
dr
e
ss
e
d,
and o
ur r
es
ult
s a
re b
a
se
d on p
ro
ce
dur
e
s und
er
ta
ken, in t
he co
ntex
t
of, and s
ol
ely fo
r the p
ur
p
os
e of, our a
udi
t of th
e fi
nan
cial s
t
atem
ent
s
as a w
ho
le, a
nd in f
or
mi
ng ou
r opi
nion t
he
re
on
, and c
on
se
qu
ently a
r
e
inci
de
ntal to t
hat o
pini
on
, and w
e do n
ot pr
o
v
id
e a se
par
ate opin
ion o
n
these mat
ters
.
INDEPENDENT A
UDITOR’S REPORT
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
94
Our response
We per
for
med th
e tes
t
s b
elo
w r
a
the
r tha
n se
ek
ing to r
el
y on an
y
of the G
r
oup’s contro
l
s b
ec
a
us
e the n
atur
e of t
he b
al
an
ce is s
uch
that w
e w
oul
d ex
pe
c
t to obt
ain a
udi
t ev
i
den
ce p
r
ima
r
ily th
r
oug
h
the
detail
ed procedu
res described. Our
procedures i
ncluded
:
–
Benchmarking as
sumptions and historical compari
son:
A
s
s
e
ss
ing a
nd ch
al
len
gin
g the ke
y as
su
mpti
on
s thr
o
ugh
retrosp
ec
tive r
ev
iew and compar
ison to exter
nal
industr
y forecas
ts.
–
Our s
e
c
to
r ex
pe
r
ie
nce:
U
sin
g our v
a
luat
ion
s sp
ec
ial
is
t
s to
cha
lle
ng
e the a
ppr
o
pr
iate
ne
s
s of di
sco
unt r
ates by d
er
i
v
in
g
our o
w
n ind
ep
end
ent r
ange an
d us
e
d ex
ter
nal mar
ket data
to chal
le
ng
e man
age
ment a
s
sum
pti
on of 5
-
ye
ar r
e
ven
ue
growth rat
es.
–
Sensiti
vit
y analysis:
Es
ti
mati
ng th
e v
alu
e in us
e u
til
isi
ng
ind
epe
nd
ent an
d mor
e c
ons
er
v
at
i
ve fo
r
ec
a
st
s a
nd di
sc
ount
r
ate
s and a
s
se
s
si
ng w
he
the
r thi
s re
su
lted i
n imp
air
m
ent
.
–
Compar
ing valuations:
Using our valuation
specialis
t,
comp
ar
ing the v
a
luat
ion p
er t
he v
al
ue in u
se im
pa
ir
me
nt mo
del
aga
ins
t ex
p
ec
te
d enter
p
r
is
e v
al
uati
ons p
er a
nal
ys
t r
ep
or
t
s and
compar
able comp
anies’ earnings multiple.
–
A
sse
ssing tr
ansparenc
y:
A
s
s
e
ss
ing t
he a
de
qua
c
y of th
e
Gr
oup’s discl
os
ur
es i
n re
sp
e
c
t of the j
udg
em
ent an
d es
ti
mate
s
ar
oun
d go
od
w
il
l r
ec
ov
er
a
bil
it
y for th
e Sm
ith
s De
tec
ti
on C
GU,
incl
udi
ng di
sc
lo
sur
e
s of th
e sen
si
ti
v
i
t
y in t
he v
al
ue in u
se
ca
lcu
l
atio
ns to c
han
ge
s in th
e key a
s
sump
tio
ns
.
Our r
esult
s
We foun
d the c
a
r
r
y
ing a
mou
nt of go
od
w
il
l r
el
ate
d to the S
mi
ths
Dete
c
tio
n CG
U to be a
ccep
tab
le (
20
21
: acce
pt
able
) an
d we f
oun
d
the sensitiv
it
y disclosure made to
be acceptable (20
21
:
acceptable).
Es
timation of litigation
prov
isions for asbe
stos in John
Cr
an
e, Inc
. £
22
9 mi
lli
on (
20
21
: £21
2 mill
ion
)) Refer to p
ag
e
72 (
Audi
t & Ris
k Co
mmi
t
tee Rep
or
t), pa
ge 108 (acco
untin
g
policies) and page 1
5
1 (financial disclosures)
Risk vs 2021
: uncha
nged
Th
e r
isk
– sub
jec
ti
v
e e
stim
ate
Th
er
e ar
e si
gni
fi
c
ant ju
dge
ment
s a
nd e
s
tim
ates i
nv
olv
ed i
n the
as
sum
pti
ons u
nde
r
ly
in
g th
e pr
ov
i
sio
ns i
n re
sp
e
c
t of Joh
n Cr
a
ne,
Inc. asbestos litigation, including the projection per
iod, forec
ast
numb
er of f
u
tur
e cl
a
ims a
nd a
ss
o
ciate
d cl
a
im and d
efen
ce co
s
t
s
app
li
ed to th
e for
e
c
as
t an
d the m
eth
od
olo
g
y ap
pl
ied f
or e
s
tima
tin
g
the prov
ision.
Th
e ef
f
ec
t of t
he
s
e mat
ter
s is that
, as p
ar
t of ou
r r
isk a
s
se
s
sm
ent
,
we d
eter
mi
ne
d that t
he l
iti
gat
ion p
r
ov
i
sio
n has a h
igh d
egr
e
e
of es
ti
mati
on un
cer
t
aint
y
, w
ith a p
otent
ial r
ange of r
e
as
ona
ble
outc
ome
s gr
e
ater th
an ou
r mater
i
al
it
y for th
e fi
nan
cial s
t
atem
ent
s
as a w
ho
le an
d po
s
sib
ly ma
ny ti
me
s that a
mo
unt. T
h
e f
ina
nci
al
st
atem
ent
s (
note 2
3) dis
cl
os
e the s
en
si
ti
v
it
y es
ti
mate
d by
the Group.
Our response
We per
for
med th
e tes
t
s b
elo
w r
a
the
r tha
n se
ek
ing to r
el
y on an
y
of the G
r
oup’s contro
l
s b
ec
a
us
e the n
atur
e of t
he b
al
an
ce is s
uch
that w
e w
oul
d ex
pe
c
t to obt
ain a
udi
t ev
i
den
ce p
r
ima
r
ily th
r
oug
h
the
detail
ed procedu
res described. Our
procedures i
ncluded
:
–
Our actuari
al exper
tise:
Cha
lle
ngi
ng th
e key ju
dg
eme
nt of th
e
ten-
y
ear p
r
oje
c
tio
n pe
r
io
d usi
ng ou
r ow
n a
c
tua
r
ial s
pe
cia
li
s
t and
our
sector knowledge
and expe
r
tise.
–
Benchmarking as
sumptions:
Using o
ur o
w
n ac
tu
ar
i
al
spe
ci
al
is
t
s
, we d
er
i
v
ed o
ur ow
n i
nde
pe
nd
ent r
a
nge o
f the
estimated provision.
–
Enq
uir
y of l
a
w
yer
s:
Ob
tai
nin
g ex
te
r
nal i
nde
pe
nde
nt le
gal
conf
ir
m
ati
ons o
f his
tor
i
c
al an
d ong
oin
g cl
a
ims a
nd ag
re
ein
g to
the hi
s
tor
ic
a
l and o
ng
oin
g cl
aim
s dat
a us
e
d by m
ana
ge
ment
exp
er
t for e
s
tim
atin
g th
e fu
tur
e p
r
oje
c
ted co
s
t and c
l
aim
s
.
–
A
sse
ss
ed management
’
s exper
t:
As
se
ssing the competenc
y
,
kn
ow
l
ed
ge an
d ind
ep
end
enc
e of th
e exp
er
t us
ing o
ur
own specia
list.
–
As
se
ssing methodolog
y:
Eva
luat
ing t
he me
tho
do
lo
g
y app
li
ed b
y
man
age
ment to t
he e
s
tim
atio
n to as
s
es
s t
hat th
e met
ho
dol
og
y
uti
li
se
d is in l
in
e w
it
h indu
s
tr
y pr
act
ice
.
–
Historic
al comparison:
A
s
s
es
s
ing an
d ch
all
en
ging t
he p
ro
je
c
ted
indemnit
y and defence expenditure throu
gh retrospec
ti
ve re
vie
w
of inc
ur
r
ed c
os
t
.
–
A
sse
ssing tr
ansparenc
y:
A
s
ses
sing whether the disclosur
es
of the ef
fec
t of r
e
as
on
ably p
os
s
ibl
e cha
nge
s in ke
y jud
ge
ment
s
and a
s
sump
tio
ns r
ef
le
c
t
s the r
isks i
nhe
r
ent in th
e pr
o
v
isi
ons’
estimation.
Our r
esult
s
We foun
d the l
ev
el of l
i
tig
atio
n pr
o
v
isi
onin
g an
d re
l
ated d
is
clo
sur
e
s
in the f
in
anc
ial s
t
atem
ent
s in r
e
sp
ec
t of J
ohn Cr
ane Inc
.
asb
e
sto
s li
ti
gati
on to b
e acce
pt
abl
e (
2
0
21
: acce
pta
ble
).
INDEPENDENT A
UDITOR’S REPORT
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
95
Valuation of
UK defined benefit SIPS pens
ion scheme
liabilities (£
1
,60
3 million (20
21
: 2,0
78 million)) and
accoun
ting of s
et
tl
eme
nt los
s a
nd p
as
t se
r
vice co
st in
relation to TIGPS pen
sion scheme buy-
in ((£
1
95 m
illion
(2
0
21
: Nil)) (
Pa
ren
t Co
mpa
ny) Ref
er to p
age 7
2 (
Audit &
Ris
k Co
mmit
te
e Repo
r
t
), p
age 108 (a
ccounti
ng p
oli
cie
s)
and page 1
2
8 (financial
disclosures)
Risk vs 2021
: decrease
The r
isk - sub
jec
tive valuatio
n and
signific
ant tr
ans
a
c
tion
Sig
nif
ic
a
nt es
ti
mate
s ar
e ma
de in v
a
luin
g the C
om
pa
ny
’s
pos
t r
eti
re
me
nt def
ine
d be
nef
i
t pl
an o
bl
iga
tio
ns in p
ar
tic
ul
ar
the di
s
count r
ates
, th
e inf
l
atio
n r
ate
s
, mo
r
tal
it
y and p
ens
ion
incr
e
as
e as
s
umpt
ion
s
. Sma
ll c
han
ge
s in th
e as
su
mpti
on
s us
ed
to deter
m
ine t
he l
iab
ili
ti
es
, in p
ar
tic
ul
ar t
ho
se r
el
a
ting to d
is
cou
nt
r
ate
s
, inf
l
atio
n and m
or
ta
li
t
y can h
av
e a sign
if
ic
ant i
mp
ac
t on
the v
a
luat
ion of t
he l
iab
il
iti
es
. T
h
e ef
fe
c
t of th
es
e m
at
ter
s i
s tha
t,
as p
ar
t of our r
i
sk as
s
e
s
sme
nt, w
e dete
r
min
ed t
hat th
e pe
nsi
on
as
sum
pti
ons h
av
e a hig
h de
gr
ee of e
s
tim
ati
on unc
er
tai
nt
y, wi
th
a potent
ial r
ange of r
e
as
on
abl
e ou
tcome
s gr
e
ater th
an ou
r
mater
i
al
it
y for th
e fi
nan
cial s
t
atem
ent
s as a w
h
ol
e, an
d po
ss
ibl
y
man
y tim
es t
hat am
ount
.
In con
duc
t
ing o
ur f
ina
l aud
it w
or
k
, fo
ll
ow
i
ng th
e bu
y
-in s
e
cur
e
d
dur
in
g th
e cur
r
ent y
e
ar w
it
h an intent
ion to f
ul
ly b
u
y-
ou
t th
e
sc
hem
e in th
e ne
ar f
utu
re
, we r
e
as
s
es
s
e
d the d
egr
e
e of
es
ti
mati
on un
cer
ta
int
y f
or T
IG
P
S s
ch
eme to b
e le
s
s th
an th
at
mater
i
al
it
y. Howe
ve
r
, the aud
it of th
e bu
y
-i
n tr
a
ns
ac
t
ion i
s
con
sid
er
ed to b
e an ar
e
a w
hic
h ha
d sign
if
ic
ant ef
fec
t on o
ur
ov
er
a
ll a
udi
t st
r
ate
g
y an
d all
oc
ati
on of r
e
s
our
ce
s in pl
anning a
nd
comp
let
ing t
he au
dit w
i
th r
e
gar
d to th
e qua
ntum of t
he s
et
tl
eme
nt
los
s an
d th
e acco
unti
ng of t
he tr
ans
ac
t
ion a
s a set
tleme
nt r
at
her
than a
n inv
e
st
me
nt dec
is
ion
.
Our response
We per
for
med th
e tes
t
s b
elo
w r
a
the
r tha
n se
ek
ing to r
el
y on an
y
of the G
r
oup’s contro
l
s b
ec
a
us
e the n
atur
e of t
he b
al
an
ce is s
uch
that w
e w
oul
d ex
pe
c
t to obt
ain a
udi
t ev
i
den
ce p
r
ima
r
ily th
r
oug
h
the
detail
ed procedu
res described. Our
procedures i
ncluded
:
–
Benchmarking as
sumptions:
Chal
len
gin
g the ke
y as
su
mpti
on
s
app
li
ed in t
he c
alc
ul
at
ion of t
he l
iab
il
it
y
, inc
lud
ing t
he di
sc
ount
r
ate
s
, inf
l
atio
n r
ate
s
, mo
r
tal
it
y and p
ens
ion i
ncr
e
as
e
s wi
th t
he
sup
por
t of ou
r ow
n a
c
tua
r
ial s
pe
cia
li
s
t
s by c
omp
ar
i
ng ag
ain
s
t
ma
r
ket
dat
a
.
–
A
sse
ssing ac
tuar
y
’
s credentials:
A
ss
es
sing the competence,
ind
epe
nd
enc
e and inte
gr
i
t
y of the sc
he
me’
s ac
t
uar
y.
–
Inspec
tion of re
levant document
s:
Inspecting contr
act
doc
um
ent
s
, tr
u
ste
e min
ute
s
, pr
oje
c
t pl
an and co
mmun
ic
ati
ons
to as
s
es
s w
h
ethe
r the b
u
y-
in tr
ans
ac
t
ion h
as b
ee
n acc
ounte
d for
app
ro
pr
i
ately in a
cco
r
dan
ce w
it
h I
A
S 1
9 usin
g our o
w
n ac
t
uar
i
al
specia
lists and ou
r sector
knowledge and
exper
tise.
–
T
est o
f de
t
ai
l:
Co
nf
ir
me
d th
e tr
a
ns
fer o
f as
s
et
s to the i
ns
ur
er to
fu
nd th
e ini
tial p
r
emiu
m for t
he bu
y
-i
n. We r
ec
onc
ile
d th
e ben
ef
it
cash flo
ws
, administr
ation and other expenses w
ith ex
ternal
evidence obtained.
–
A
sse
ssing tr
ansparenc
y:
Co
nsi
der
ing the a
de
qua
c
y of t
he
dis
cl
osu
re
s in r
e
sp
ec
t of t
he s
en
sit
i
v
it
y of the ob
l
igat
ion to
key as
s
umpt
ion
s an
d the d
is
clo
sur
e in r
e
sp
ec
t of t
he b
u
y-
in trans
ac
tion.
Our r
esult
s
We foun
d the v
aluati
on of th
e pe
nsi
on s
ch
eme l
ia
bil
it
ie
s of SIP
S
sc
hem
e to be a
ccept
ab
le (
2
021
: acce
pta
ble
) an
d we f
oun
d the
sensitiv
it
y disclosure made to be ac
ceptable (2
021
: ac
ceptable).
We foun
d the a
cco
untin
g of th
e se
t
tle
ment l
os
s an
d p
as
t se
r
v
ice
cos
t fo
r T
IGP
S sch
eme i
n the p
er
i
od to b
e acc
ept
abl
e (
2
0
21
: Nil
).
INDEPENDENT A
UDITOR’S REPORT
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
96
4 The impact of cli
mat
e chan
ge on ou
r audi
t
We hav
e co
nsi
der
e
d th
e potent
ial im
pa
c
t
s of cl
im
ate cha
ng
e on th
e
fi
nan
cial s
t
atem
ent
s as p
ar
t of pl
a
nni
ng ou
r aud
it
. A
s t
he G
ro
up
has s
et o
ut on p
a
ge 4
0
, cl
im
ate cha
nge h
as t
he p
otenti
al to gi
v
e
r
is
e to a numb
er of t
r
an
si
tio
n r
is
k
s and o
pp
or
tuni
tie
s an
d ph
y
sic
al
r
isk
s a
nd op
po
r
tunit
ie
s
. Th
e Gr
o
up ha
s st
ate
d the
ir com
mi
tme
nt
to achi
ev
e Net Ze
r
o for S
co
pe 1 a
nd 2 em
is
si
ons b
y 2
0
40 a
nd to
achi
ev
e Net Ze
r
o for S
co
pe 3 e
mis
si
on
s by 2
0
5
0
. T
he ar
e
as of t
he
fi
nan
cial s
t
atem
ent
s th
at ar
e mo
st l
ikel
y to be p
otenti
all
y af
f
ec
te
d
by c
lim
ate r
el
ate
d cha
nge
s a
nd ini
ti
ati
ve
s ar
e f
u
tur
e lo
s
s of r
ev
enu
e
due to
supply chai
n challenges. The Group considered the impact
of cl
imate c
han
ge a
nd th
e Gr
ou
p’
s tar
g
et
s in th
e pr
ep
ar
ation of
the f
in
anc
ial s
t
ateme
nt
s, a
s de
s
cr
i
be
d on p
age 3
9
, and c
onc
lu
ded
this d
id n
ot hav
e a ma
ter
ial e
f
fe
c
t on th
e co
ns
ol
id
ated f
in
anci
al
st
atem
ent
s
. We pe
r
for
me
d a r
is
k as
s
es
s
ment
, t
aki
ng into a
ccou
nt
cl
imate c
han
ge r
i
sk
s an
d the c
ommi
tm
ent
s ma
de b
y th
e Gr
oup
.
We hel
d inq
uir
i
es of m
ana
ge
ment r
e
gar
di
ng th
eir p
r
oce
s
s
es f
or
as
s
es
si
ng th
e pote
ntia
l imp
ac
t of c
li
mate ch
ang
e r
is
k on th
e Gr
ou
p’
s
fi
nan
cial s
t
atem
ent
s an
d hel
d di
sc
us
si
ons w
i
th o
ur ow
n c
l
imate
cha
nge p
r
ofe
s
sio
nal
s to chal
len
ge o
ur r
is
k as
s
es
s
ment
.
Ba
se
d on o
ur r
is
k as
s
e
ss
ment w
e d
eter
min
ed t
hat t
he b
al
an
ce
s
in the
s
e f
ina
nci
al s
tate
ment
s a
re n
ot at si
gni
fi
c
ant r
is
k in r
el
ati
on
to cl
imate c
han
ge. T
h
is is b
e
ca
us
e, b
as
ed o
n our r
isk as
s
es
s
ment
,
the l
ong
-ter
m g
r
ow
th r
ate i
s not i
dent
if
ie
d as a ke
y as
sum
pti
on a
re
as
on
abl
y po
s
sibl
e ch
ang
e in w
hic
h cou
ld r
e
sul
t in an im
pai
r
me
nt
in r
el
ati
on to th
e es
t
imate
d v
alu
e in us
e of th
e Sm
ith
s Dete
c
ti
on
CG
U. Hence
, we a
s
se
s
s
ed t
hat th
er
e is n
ot a sig
nif
ic
a
nt imp
ac
t o
n
our au
di
t for th
is f
ina
nci
al y
ear
. Th
er
e w
as n
o imp
ac
t o
f cl
imate
cha
nge o
n our ke
y aud
it m
at
ter
s i
ncl
ude
d in s
ec
t
ion 3
. We ha
ve r
e
ad
the G
ro
up’
s dis
c
los
ur
e of cl
im
ate re
l
ated i
nfor
m
atio
n in th
e fr
o
nt hal
f
of the A
nnual Rep
or
t as s
et ou
t on p
ag
e
s 3
5 to 4
0 an
d con
si
der
e
d
con
sis
ten
c
y w
i
th th
e fi
nan
cia
l st
atem
ent
s an
d our a
udi
t kn
o
w
le
dge
.
£
16
m
(2021
: £
1
1.3 m
illion)
Whole financial statements materiality
£
15
.
8
m
(2
0
21
: £1
1
.0 mi
ll
io
n)
Ran
g
e of m
at
er
i
al
it
y at 32 (
20
21: 34
) com
p
on
en
t
s
(£0
.6m – £15.8
m) (
20
21: £0.
6m – £1
1
m)
£0.8
m
(2
0
21
: £
0.6
m)
Mi
s
st
a
te
me
nt
s r
ep
or
ted t
o th
e Au
di
t & R
is
k C
om
mi
t
te
e
Gr
ou
p pr
o
fi
t b
efo
r
e ta
x f
r
om c
ont
in
uin
g
oper
ations, normalise
d to
exclude
specif
ic items
Group mat
eriali
t
y
£10
.
4
m
(2021
: £7
.3 million)
Whole financial statements perf
ormance materiality
Material
it
y
Gro
up pr
ofi
t bef
or
e ta
x fr
om con
tinui
ng op
er
at
ion
s, n
or
ma
lis
ed to e
xclud
e spe
cif
ic ite
ms - £ 314 million (
2
0
21
: Group
pro
fit b
ef
ore t
a
x fro
m conti
nuin
g ope
r
ati
ons
, no
r
mal
is
ed to excl
ude s
pe
cif
ic ite
ms an
d by av
er
ag
ing o
ver th
e l
as
t thre
e
yea
rs d
ue to th
e imp
ac
t of t
he C
OV
ID
-
1
9 pand
emic - £
2
5
3 mil
lio
n)
5
Our applic
ation of
material
it
y and an
over
view of t
he scope o
f our a
udit
Material
it
y
Mater
i
al
it
y for the G
r
oup f
in
anc
ial s
t
ateme
nt
s as a w
h
ole w
as set
at £1
6 mill
io
n (
2
0
21
: £1
1.3 mil
l
ion
), dete
r
min
ed w
i
th r
efer
en
ce to a
ben
chm
ar
k of G
r
oup p
ro
fi
t bef
or
e t
ax f
r
om co
ntinu
ing o
pe
r
ati
on
s
normal
ised to exclude
foreign exchange gai
n on int
ercompany
lo
an w
it
h dis
co
ntinu
ed o
per
ation
s
, of £
2
2 mi
ll
io
n (
2
0
21
: £5
0 m
ill
io
n
los
s
), ret
ir
em
ent be
nef
it s
ch
em
e set
tleme
nt los
s £1
71 mil
li
on
(
2
0
21
: Nil
), p
as
t s
er
v
ic
e equ
al
is
ati
on co
s
t £4
3 mil
li
on (
2
021
: Nil
)
and im
pa
ir
me
nt of as
s
et
s £1
9 mil
l
ion (
20
21 : Nil
). Mater
ia
li
t
y for
the 2
0
21 G
r
oup f
in
anci
al s
ta
teme
nt
s as a w
ho
le w
a
s dete
r
min
ed
w
ith r
efe
re
nce to a b
en
chm
ar
k of G
ro
up pr
of
i
t bef
or
e ta
x f
ro
m
conti
nuin
g op
er
ation
s nor
mali
se
d as d
e
sc
r
ibe
d ab
ov
e an
d al
s
o
by a
ve
r
ag
ing o
v
er th
e l
as
t thr
e
e ye
ar
s d
ue to th
e imp
ac
t of t
he
CO
V
ID
-
1
9 pa
nde
mic
. T
he G
r
oup te
am p
er
for
me
d pr
o
ce
dur
e
s on
the e
xclud
ed i
tem
s.
Mater
i
al
it
y for the P
a
re
nt Co
mp
any f
in
anc
ial s
t
atem
ent
s as a
w
hol
e w
as s
et at £1
5.
8 mi
ll
ion (
20
21
: £1
1.0 mil
li
on
), deter
m
ine
d
w
ith r
efe
re
nce to a b
en
chm
ar
k of P
ar
ent C
om
pa
ny tot
al a
ss
et
s
,
lim
ite
d to be l
es
s th
an m
ater
ia
li
t
y f
or Gr
o
up mate
r
ial
it
y as a w
h
ole
.
It r
ep
re
s
ent
s 0
.4%% (
2
0
21
: 0.5
%) of to
tal a
s
se
t
s.
In li
ne w
it
h our a
udi
t met
ho
dol
og
y, our p
ro
ce
dur
e
s on
indi
v
i
dua
l acc
ount b
al
an
ce
s and d
is
cl
osu
re
s w
er
e pe
r
for
me
d
to a lo
wer t
hr
e
sho
ld
, pe
r
for
man
ce ma
ter
ial
i
t
y, so a
s to re
du
ce
to an acc
ept
abl
e le
ve
l the r
i
sk th
at in
di
v
idu
al
ly imm
ater
ia
l
mis
s
t
ateme
nt
s in ind
i
v
idu
al acc
ount b
al
a
nce
s a
dd up to a
mater
i
al am
ount a
cr
os
s th
e f
ina
nci
al s
tate
ment
s a
s a w
ho
le.
Per
for
m
anc
e mater
iali
t
y w
a
s s
et at 6
5% (
20
21
: 6
5%
) of m
ater
ia
li
t
y
for th
e f
inan
cia
l s
tate
ment
s a
s a w
ho
le, w
hi
ch e
quate
s to
£1
0.
4 mil
l
ion (
20
21
: £
7
.
3
mil
l
ion
) fo
r the G
r
oup an
d £10.2 mil
li
on
(
2
0
21
: £7
.2 mil
l
ion
) fo
r the P
a
re
nt com
pa
ny. We appl
ie
d thi
s
per
ce
nta
ge in o
ur de
ter
min
ati
on of p
er
for
ma
nce m
ater
i
al
it
y
ba
se
d on t
he le
ve
l of id
enti
f
ied a
udi
t mis
s
t
atem
ent
s an
d cont
ro
l
def
ici
enc
ie
s dur
i
ng th
e pr
i
or y
ear
. We agr
ee
d to r
ep
or
t to the
Au
dit & R
isk C
om
mit
tee any c
or
r
ec
te
d or un
co
r
re
c
te
d ide
ntif
ie
d
mis
s
t
ateme
nt
s exce
edi
ng £
0.
8 mil
li
on (
2
021
: £0
.6 mil
l
ion
),
in ad
dit
ion to ot
her i
de
ntif
ie
d mi
ss
t
atem
ent
s th
at w
ar
r
anted
re
po
r
ting on q
ual
it
ati
v
e gr
o
und
s.
INDEPENDENT A
UDITOR’S REPORT
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
97
Sco
pe
Th
e Gr
o
up op
er
ate
s in m
or
e th
an 5
0 co
untr
i
e
s acr
os
s s
ix
conti
nent
s w
i
th t
he l
ar
g
es
t fo
otp
r
int
s b
ein
g in th
e US
, Eur
op
e
and A
sia. T
h
e Gr
ou
p is or
g
ani
se
d into fo
ur di
v
is
ion
s: Jo
hn
Cr
an
e, S
mit
hs D
etec
t
ion
, F
lex-
T
ek and Sm
it
hs Inter
co
nne
c
t is a
consol
idation of over 250 repo
r
ting component
s. Smiths Medic
al
di
v
isi
on w
a
s so
ld in c
ur
r
ent y
ea
r (di
sc
onti
nue
d op
er
a
tio
ns
). We
sc
ope
d th
e aud
it b
y obt
ain
ing a
n und
er
s
t
and
ing of t
he G
ro
up an
d
it
s en
v
ir
onm
ent an
d as
s
e
s
sin
g the r
i
sk of m
ater
ia
l mis
s
t
ateme
nt
at the G
r
oup le
v
el
. We ha
ve c
on
sid
er
ed c
omp
on
ent
s b
as
ed o
n
thei
r cont
r
ibu
ti
on to Gr
o
up r
ev
enu
e; Gr
oup A
ss
et
s a
nd Gr
o
up
pr
of
it b
efor
e t
ax f
or co
ntin
uing o
pe
r
ati
on
s inc
lud
ing w
h
ethe
r we
had s
uf
fic
ient c
ov
er
a
ge o
v
er ea
ch di
v
i
sio
n and t
he sp
ec
if
ic r
isk
s in
the components.
Of t
he G
ro
up’
s 2
5
3 (
2
0
21: 25
4
) r
epo
r
ting c
omp
on
ent
s
, we
subj
ec
te
d 2
3 (
2
021
: 24
) to f
ul
l sc
op
e audi
t
s fo
r Gr
oup p
ur
p
os
e
s
and 9 (
20
21
:8
) to spe
ci
f
ied r
isk-focu
se
d au
dit p
r
oce
dur
e
s or a
udi
t
of sp
eci
f
ic acc
ount b
al
a
nce
s
. T
he co
mp
one
nt
s for w
h
ich w
e
per
for
med au
dit o
f spe
ci
f
ic acc
ount b
al
a
nce
s w
er
e not in
di
v
id
ual
ly
fi
nan
cial
ly s
igni
f
ic
ant en
ou
gh to r
equ
ir
e a fu
ll s
co
pe au
di
t for G
ro
up
pur
p
os
e
s bu
t we
re i
ncl
ude
d in th
e s
cop
e of ou
r Gr
oup r
ep
or
tin
g
wo
r
k in or
d
er to pr
o
v
ide f
ur
th
er co
ve
r
a
ge o
ve
r the G
ro
up’
s r
es
ult
s
.
Th
e co
mpo
nent
s for wh
ich w
e p
er
for
m
ed sp
ec
if
ie
d r
is
k-focu
se
d
audit proce
dure
s were not indiv
idual
ly financially signif
icant
eno
ugh to r
e
quir
e an a
udi
t for G
r
oup r
ep
or
tin
g pur
pos
es b
ut d
id
pr
es
ent s
pe
ci
fi
c ind
i
v
idu
al r
is
k
s that n
ee
de
d to be a
ddr
e
s
s
ed
.
Specified
risk-
focused a
udit p
rocedures were
per
formed over a
numb
er of a
re
as
, in
clu
din
g li
ti
gati
on pr
o
v
is
ion
s and d
ef
ine
d be
nef
it
pension ass
ets and liabili
ties.
Th
e Gr
o
up aud
it p
er
for
m
ed an
aly
tic
al p
r
oce
dur
e
s o
ve
r the t
r
ad
ing
re
su
lt
s of th
e dis
co
ntin
ue
d ope
r
at
ion (
the S
mi
ths M
edi
c
al di
v
i
sio
n)
and s
ubs
t
anti
v
e te
st o
ve
r the d
isp
os
a
l acco
unti
ng an
d r
es
ult
ant
pr
of
it o
n s
ale r
ec
og
nize
d in th
e con
so
l
idate
d f
ina
nci
al s
tate
ment
s
.
Th
e s
cop
e of th
e aud
it w
or
k p
er
for
m
ed w
a
s pr
e
dom
inate
ly
sub
st
ant
i
ve a
s we p
l
ace
d l
imi
ted r
el
ian
ce up
on th
e Gr
ou
p’
s
inter
n
al cont
r
ol o
ver f
in
anc
ial r
ep
or
tin
g.
Th
e co
mpo
nent
s wit
hin th
e s
cop
e of ou
r wo
r
k acc
ounte
d for
the fo
ll
ow
i
ng p
er
cent
ag
e
s of the G
r
oup’s res
ult
s fo
r cont
inui
ng
ope
r
at
ion
s ar
e sh
ow
n
, r
ig
ht.
Th
e r
ema
inin
g 26% (
2
0
21
: 26%) of tot
al Gr
o
up r
ev
enu
e, 18%
(
2
0
21
: 30
%
) of G
r
oup p
ro
fi
t bef
or
e ta
x f
r
om co
ntinu
ing o
pe
r
ati
on
s
and 2
5
% (
2
0
21
: 21
%) o
f tota
l Gr
oup a
s
set
s is rep
r
es
ente
d b
y
re
po
r
ting co
mp
one
nt
s w
hich i
ndi
v
i
dua
lly d
id no
t re
pr
e
se
nt mor
e
than 1% (
2
0
21
: 3%
) of an
y of tota
l Gr
ou
p re
v
enue f
or co
ntin
uing
oper
ations, Group prof
it before tax for conti
nuing operations or
tota
l Gr
oup a
s
set
s. For t
he
s
e re
si
dua
l com
pon
ent
s
, w
e pe
r
for
me
d
an ana
ly
si
s at an ag
gr
eg
ated G
r
oup l
ev
el to r
e-
e
xam
ine o
ur
as
s
es
sm
ent t
hat th
er
e we
r
e no si
gni
fi
c
ant r
is
k
s of mater
ial
miss
tatement within these components
.
Th
e Gr
oup’
s r
es
ult
s
GROUP REVENUE
GROUP PROFIT BEFORE TAX
GROUP TOTAL ASSETS
2022
Group
revenue
Group profit
be
fo
r
e t
ax
Gr
o
up t
ot
a
l
ass
ets
Fu
ll s
c
op
e fo
r gr
ou
p au
di
t
purpose
s
57%
76
%
68%
Au
di
t of A
cc
ou
nt B
al
a
nce
17
%
6%
3%
Specified risk
-focused
audit proce
dures
–
–
4%
Residual components
2
6%
18
%
25%
2021
Fu
ll s
c
op
e fo
r gr
ou
p au
di
t
purpose
s
60%
61%
69
%
Au
di
t of A
cc
ou
nt B
al
a
nce
14%
7%
7%
Specified
risk
-foc
used
audit proce
dures
–
2%
3%
Residual components
2
6%
30%
2
1%
(2021 74%)
74%
(2021 79%)
75%
(2021 70%)
82%
INDEPENDENT A
UDITOR’S REPORT
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
98
We considered whether thes
e risk
s could plausibly af
fec
t the
li
quid
it
y or co
ven
ant co
mpl
ia
nce i
n the g
oin
g con
cer
n p
er
i
od b
y
comp
ar
ing se
v
er
e bu
t pl
au
sib
le do
w
n
sid
e sc
enar
ios th
at cou
ld
ar
is
e f
r
om th
es
e r
i
sk
s ind
i
v
idu
all
y and c
ol
lec
t
i
ve
ly ag
ain
st t
he
lev
el of a
v
ail
able f
ina
nci
al r
es
ou
rc
es a
nd co
v
ena
nt thr
e
sho
ld
s
indi
c
ated b
y th
e Gr
oup’s finan
cia
l for
e
c
as
t
s
. We al
s
o as
s
e
s
se
d the
completeness of the
going concern disclosure.
Our con
clusio
ns based on this work:
–
we co
nsi
de
r that t
he Di
re
c
tor
s
’ us
e of th
e goi
ng co
nce
r
n ba
si
s
of acc
ounti
ng in t
he pr
e
par
ation o
f the f
in
anc
ial s
t
ateme
nt
s
is appropriate;
–
we ha
ve n
ot id
enti
f
ied
, an
d con
cur w
i
th th
e Dir
e
c
tor
s’
as
s
es
sm
ent t
hat th
er
e is n
ot, a m
ater
ia
l unc
er
taint
y re
l
ated to
ev
ent
s or c
on
dit
ion
s tha
t, in
di
v
id
ual
ly or c
ol
le
c
ti
ve
ly, may c
as
t
sign
if
ic
ant d
oub
t on th
e Gr
oup’s or Com
pan
y
’
s abi
li
t
y to continu
e
as a go
ing c
onc
er
n fo
r the g
oin
g co
nce
r
n pe
r
io
d;
–
we ha
ve n
oth
ing m
ater
ia
l to ad
d or dr
aw at
tenti
on to in r
el
at
ion to
the D
ir
ec
to
r
s’ st
ateme
nt on p
ag
e 92 to t
he f
in
anci
al s
t
ateme
nt
s
on th
e us
e of the g
oin
g co
nce
r
n ba
si
s of acc
ounti
ng w
i
th no
mater
i
al un
cer
tai
ntie
s th
at ma
y c
as
t si
gnif
i
ca
nt do
ubt ov
er t
he
Gr
oup a
nd C
omp
an
y’s use o
f that b
as
is fo
r the g
oin
g co
ncer
n
per
iod, a
nd w
e fou
nd th
e goi
ng co
nce
r
n di
sc
los
ur
e on p
ag
e 5
4 to
be acceptable; and
–
the r
e
l
ated s
t
ateme
nt und
er th
e L
is
tin
g Rul
es s
et o
ut o
n pa
ge
91 is mate
r
ial
ly co
ns
is
tent w
it
h the f
in
anc
ial s
t
atem
ent
s an
d our
audit knowledge.
Ho
we
ve
r
, as we c
ann
ot pr
e
dic
t al
l f
ut
ur
e ev
ent
s o
r con
dit
ion
s an
d
as su
bs
equ
ent e
ve
nt
s ma
y re
s
ult in o
utco
me
s th
at ar
e inc
ons
is
tent
w
ith j
udg
em
ent
s th
at we
re r
e
as
on
abl
e at the t
ime t
he
y we
re m
ad
e,
the a
bo
ve c
onc
lus
ion
s ar
e not a g
uar
antee th
at the G
r
oup o
r the
Co
mp
any w
il
l co
ntinu
e in op
er
ation
.
Th
e Gr
o
up aud
it te
am in
st
r
uc
te
d com
po
nent a
udi
tor
s a
s to th
e
sign
if
ic
ant a
re
as to b
e co
ve
r
ed
, incl
udi
ng th
e r
ele
v
ant r
i
sk
s
det
aile
d ab
ov
e an
d the i
nfor
m
ati
on to be r
e
por
ted b
ac
k
. T
he Gr
o
up
audi
t tea
m set t
he c
omp
one
nt mate
r
ial
it
y wh
ich r
ange
d f
ro
m
£0
.6 mi
ll
ion to £15.8 mil
l
ion (
20
21
: £0
.6 mi
ll
io
n to £1
1.0 mill
i
on
),
hav
i
ng r
eg
ar
d to th
e mix o
f size a
nd r
i
sk pr
of
il
e of the G
r
oup
acr
os
s t
he co
mp
one
nt
s. T
h
e wo
r
k on 3
0 o
f the 3
2 (
2
0
21
: 3
3 o
f the
3
4
) co
mp
one
nt
s w
as p
er
for
m
ed b
y co
mpo
nent a
udi
tor
s a
nd t
he
audi
t of th
e P
ar
ent C
omp
an
y w
as p
er
for
m
ed b
y th
e Gr
ou
p team
.
Th
e w
or
k on S
mi
ths M
ed
ic
al in
clu
din
g dis
pos
a
l acc
ount
ing w
a
s
per
for
med b
y the G
r
oup te
am.
Regul
ar vi
de
o confe
r
enc
e mee
tin
gs w
er
e hel
d w
it
h all i
n-
sc
ope
comp
on
ent
s at
te
nd
ed b
y se
nio
r gr
oup a
udi
t team m
em
ber
s.
Th
e
se m
eet
ing
s inv
ol
ve
d ex
pl
an
ati
on of Gr
o
up au
dit i
ns
tr
u
c
tio
ns
,
inv
olv
em
ent in p
l
ann
ing au
di
t pr
oc
edu
re
s
, di
sc
us
si
ng pr
o
gr
e
ss
upd
ates a
nd em
er
gi
ng f
in
ding
s
, re
v
ie
w
in
g ou
tcome
s of te
s
tin
g
per
for
med an
d inv
ol
vem
ent in d
is
cus
s
ing a
udi
t f
indi
ng
s w
ith
comp
on
ent m
ana
gem
ent
. T
he G
ro
up au
dit te
am r
ou
tin
ely
re
v
ie
w
ed th
e au
dit d
oc
ume
ntat
ion of a
ll c
omp
on
ent au
dit
s t
hr
ou
gh
v
ar
io
us s
t
ag
es of t
hei
r aud
it
s
. We we
re u
nab
le to v
is
it o
ne Chi
na
comp
on
ent (
not f
in
anc
ial
ly si
gni
fi
c
ant
) an
d r
emote a
cce
s
s to
audi
t do
cu
ment
ati
on is p
r
ohib
ite
d by l
oc
a
l l
aw. A
s a re
sult o
f thi
s
re
s
tr
i
c
tio
n, w
e ex
tende
d our o
ve
r
si
ght of th
is co
mpo
ne
nt’s audit
thr
ou
gh ex
tende
d dis
c
us
sio
n w
it
h com
pon
ent au
di
t team
.
6 Goin
g conc
ern
Th
e Dir
e
c
tor
s h
av
e pr
ep
ar
e
d the f
in
anc
ial s
t
atem
ent
s on t
he go
ing
con
cer
n b
as
is a
s the
y do n
ot inten
d to li
qui
date th
e Gr
ou
p or th
e
Co
mp
any o
r to cea
se t
hei
r op
er
at
ion
s
, and a
s th
ey h
av
e con
clu
de
d
that t
he Gr
o
up’
s and t
he C
omp
an
y’s fin
anc
ial p
os
iti
on me
an
s tha
t
this i
s r
eal
i
st
ic
. T
he
y ha
ve al
so co
ncl
ude
d th
at the
r
e ar
e no ma
ter
ia
l
unce
r
taint
ie
s that c
oul
d ha
ve c
a
st s
ign
if
ic
ant d
oubt o
v
er th
eir ab
il
it
y
to conti
nue a
s a go
ing c
onc
er
n fo
r at le
as
t a ye
ar f
r
om th
e date of
app
ro
v
al of t
he f
in
anc
ial s
t
ateme
nt
s (
“th
e goi
ng co
nce
r
n pe
r
io
d”
).
We us
ed ou
r kn
ow
l
ed
ge of t
he Gr
o
up, it
s in
du
st
r
ie
s an
d the g
ene
r
al
eco
no
mic en
v
ir
on
ment to i
dent
if
y the in
her
e
nt r
isk
s to i
t
s bu
sine
s
s
mo
del an
d an
aly
s
ed h
ow t
ho
se r
i
sk
s mi
ght af
f
ec
t th
e Gr
o
up’
s and
Company’s financial
re
sources or abilit
y to continue
oper
ations
ov
er th
e goi
ng co
nce
r
n pe
r
io
d. T
h
e r
isk
s t
hat w
e con
si
der
e
d mo
st
like
ly to ad
v
er
s
el
y af
fe
c
t th
e Gr
ou
p’
s and C
omp
an
y’s av
ail
a
ble
fi
nan
cial r
e
s
our
ce
s an
d met
r
ic
s r
el
ev
ant to d
ebt c
ov
en
ant
s ov
er t
his
per
iod were:
–
Ad
v
er
s
e tr
adin
g con
dit
ion
s an
d imp
ac
t o
n the G
r
oup’s oper
at
ion
s
or th
at of it
s s
upp
li
er
s a
nd cu
s
tome
r
s
, suc
h as d
el
a
ys a
nd
ca
nce
ll
at
ion
s of or
d
er
s an
d de
li
v
er
i
es
, a
s a re
s
ult of r
e
cur
r
e
nce
of CO
V
I
D 1
9 dis
r
upt
ion
, r
e
sult
ing i
n a sign
if
ic
ant d
eter
i
or
a
tio
n in
the Group’
s
liquidit
y position.
–
Pr
od
uc
t qu
al
it
y fai
lur
e w
hic
h wo
uld r
e
su
lt in r
ep
ut
ati
ona
l
damage amongst customer
s and therefore reduction in order
s
and c
us
tom
er lo
s
s as w
el
l as p
otentia
l sig
nif
ic
a
nt li
abil
i
t
y c
l
aim
s
r
aise
d agains
t the Gro
up.
INDEPENDENT A
UDITOR’S REPORT
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
99
7
F
raud and breac
hes of law
s and
regulati
ons – abi
lit
y to de
tect
Identif
ying an
d re
spon
ding to r
isk
s of mater
ial
miss
tatement due to f
r
aud
T
o identi
f
y r
isk
s of m
ater
ia
l mis
s
t
ateme
nt due to f
r
a
ud (
“
f
r
a
ud
r
isk
s”) w
e a
ss
e
s
se
d e
ve
nt
s or co
ndi
tio
ns t
hat co
uld i
ndi
c
ate an
ince
nti
v
e or pr
e
s
sur
e to co
mmi
t fr
aud or p
r
ov
i
de an o
pp
or
tuni
t
y to
comm
it f
r
a
ud
. Our r
i
sk a
ss
e
s
sme
nt pr
o
ced
ur
es i
ncl
ude
d:
–
Enq
uir
in
g of Di
re
c
tor
s, the A
u
dit & R
isk C
om
mit
tee, inter
n
al
audi
t an
d ins
pe
c
tio
n of po
l
ic
y d
oc
ume
ntat
ion a
s to th
e Gr
oup’s
high
-l
ev
el p
ol
ici
e
s and p
r
oce
dur
e
s to pr
e
ve
nt and d
etec
t f
r
a
ud
,
incl
udi
ng th
e inter
n
al au
dit f
un
c
tio
n, a
nd th
e Gr
ou
p’
s chan
nel f
or
“w
hi
st
leb
lo
w
ing”
, as w
ell a
s w
het
her t
he
y ha
ve k
no
w
le
dg
e of any
actual
, suspected or alleged fraud.
–
Readi
ng B
oa
r
d, A
udi
t & Ri
sk
, Di
sc
los
ur
e, T
r
an
s
ac
ti
ons
,
Nomination &
Gover
nance, Remuneration & People,
Inv
es
t
ment
s a
nd E
xe
cu
ti
v
e Co
mmi
t
tee m
inu
tes
.
–
Consider
ing remuner
ation incentive scheme
s and per
for
mance
tar
g
et
s fo
r man
age
ment a
nd D
ir
ec
tor
s inclu
din
g the E
P
S t
ar
g
et
for management remuner
ation.
–
Usin
g anal
y
tic
al pr
o
ced
ur
es to i
dent
if
y any u
nus
ual o
r
unexpected
relations
hips.
We comm
unic
ate
d id
enti
f
ied f
r
aud r
isk
s t
hr
ou
gho
ut th
e au
dit te
am
and r
em
ain
ed al
er
t to any in
dic
at
ion
s of f
r
au
d thr
o
ugh
ou
t the a
udi
t
.
Th
is in
clu
de
d com
muni
c
atio
n fr
o
m the G
ro
up to f
ul
l sc
ope a
nd
audi
t of sp
ec
if
ic a
cco
unt b
al
an
ce
s sc
ope c
omp
on
ent au
dit te
am
s of
re
le
v
ant f
r
au
d r
is
ks i
de
ntif
ie
d at th
e Gr
ou
p lev
el a
nd r
eq
ue
s
tin
g the
fu
ll s
cop
e an
d aud
it ac
cou
nt ba
l
ance s
co
pe c
omp
on
ent au
dit te
am
s
to re
por
t to th
e Gr
ou
p audi
t tea
m any i
ns
t
ance
s of f
r
a
ud th
at co
uld
gi
ve r
i
s
e to a mater
i
al mi
ss
t
atem
ent at Gr
o
up.
A
s r
e
quir
e
d by a
udi
tin
g st
an
dar
d
s an
d tak
in
g into acc
ount p
os
s
ible
pr
es
s
ur
es to m
ee
t pr
of
it t
ar
ge
t
s, a
nd o
ur ov
er
all kn
o
w
led
ge of t
he
contr
o
l env
i
ro
nm
ent, w
e p
er
for
m p
ro
ce
dur
e
s to ad
dr
es
s t
he r
i
sk of
man
age
ment o
v
er
r
i
de of c
ontr
ol
s and th
e r
is
k of fr
audul
ent r
ev
en
ue
re
co
gni
tio
n, in p
ar
ti
cul
a
r in the S
mi
ths D
ete
c
tio
n Inc
, US
A and
Smi
th
s Dete
c
tio
n Ge
r
man
y Gm
bH co
mpo
nent
s a signi
fi
c
ant po
r
tion
of mult
i- y
ea
r contr
ac
t
s (
pr
o
gr
a
mme r
e
ve
nue
) r
ev
enu
e is n
or
m
all
y
re
co
gni
se
d in th
e l
as
t m
onth of t
he y
ear
. Th
er
efo
re
, the
re i
s a r
is
k of
re
v
enue b
ein
g o
ver
st
ated du
r
ing t
he y
ea
r end c
los
ing p
er
i
od t
hr
ou
gh
the m
anip
ul
ati
on of t
he ti
ming o
f re
co
r
ding o
f the s
a
le tr
ans
ac
ti
on
fr
om s
uch p
r
es
s
ur
e. We di
d not i
dent
if
y any a
ddi
tio
nal f
r
aud r
is
ks
.
We
per
formed procedu
res inclu
ding
:
–
Ident
if
y
ing j
our
n
al ent
r
ie
s to te
st f
or al
l com
po
nent
s w
i
thi
n fu
ll
sc
ope a
nd au
di
t of sp
eci
f
ic ac
count b
al
a
nce
s s
cop
e b
as
ed o
n
risk cr
iter
ia and comparing the identified entr
ies to suppor
ting
doc
um
ent
atio
n. T
h
es
e in
clu
de
d unus
ual e
ntr
ie
s in r
e
ve
nue
acco
unt
s
, c
as
h and c
a
sh eq
ui
v
al
ent
s or b
or
r
o
w
in
gs acc
ount
s
and e
ntr
ie
s p
os
ted b
y s
eni
or f
ina
nce m
ana
gem
ent
.
–
T
e
sting conso
lidation adjustment entries pos
ted and comparing
the identified entrie
s to su
ppor
ting documentation.
Identif
ying an
d re
spon
ding to r
isk
s of mater
ial
misstateme
nt due t
o non-comp
liance with laws
and regulati
ons
We ide
ntif
ie
d ar
e
as of l
a
w
s and r
e
gul
at
ion
s th
at cou
ld r
e
as
ona
bly
be ex
p
ec
te
d to hav
e a mate
r
ial ef
fec
t o
n the f
in
anc
ial s
t
ateme
nt
s
from our gener
al commercial and sec
tor exper
ience, through
dis
cu
s
sio
n w
ith t
he Di
re
c
tor
s and oth
er man
ag
eme
nt (a
s r
eq
uir
ed
by au
di
tin
g st
an
dar
d
s), an
d f
ro
m ins
pe
c
tio
n of th
e Gr
oup’s
re
gul
a
tor
y and l
eg
al co
r
r
es
po
nde
nce a
nd di
sc
us
s
ed w
i
th th
e
Dir
ec
to
r
s an
d oth
er ma
nag
em
ent th
e po
li
cie
s an
d pr
oc
ed
ur
es
regar
ding complian
ce with l
aw
s and regul
ations.
A
s t
he Gr
o
up is r
e
gul
ate
d, o
ur as
s
es
s
ment o
f r
isk
s in
vo
lv
ed
gain
ing an u
nd
er
s
t
and
ing of t
he co
ntr
ol e
nv
ir
on
ment i
ncl
udin
g th
e
enti
t
y
’s pro
ced
ur
e
s for co
mpl
y
ing w
i
th r
eg
ul
ator
y r
e
quir
em
ent
s
.
We comm
unic
ate
d id
enti
f
ied l
a
w
s an
d re
gu
l
atio
ns t
hr
oug
ho
ut ou
r
team a
nd r
ema
ine
d ale
r
t to any in
dic
ati
on
s of no
n-
co
mpl
ia
nce
thr
ou
gho
ut t
he au
di
t. T
hi
s inc
lud
ed c
omm
unic
at
ion f
r
om t
he
gr
oup to f
ul
l-sc
op
e com
po
nent a
udi
t team
s of r
el
ev
ant l
aws
and r
e
gul
at
ion
s id
enti
fi
ed at t
he Gr
o
up le
ve
l
, and a r
e
que
s
t for
fu
ll s
cop
e co
mpo
ne
nt audi
tor
s to rep
or
t to the G
ro
up tea
m any
ins
t
anc
es of n
on
-
com
pl
ian
ce w
it
h l
aw
s a
nd r
eg
ul
ati
ons t
hat c
oul
d
gi
ve r
i
s
e to a mater
i
al mi
ss
t
atem
ent at Gr
o
up.
Th
e po
tentia
l ef
fe
c
t of th
e
se l
a
w
s an
d re
gul
a
tio
ns on t
he f
in
anci
al
statements v
arie
s consider
ably.
F
ir
s
tly, the G
r
oup is s
ubj
ec
t to l
a
w
s an
d re
gul
a
tio
ns th
at dir
e
c
tly
af
fe
c
t th
e fi
nan
cia
l st
atem
ent
s in
clu
din
g fi
nan
cia
l re
po
r
ting
legislation (including related companies legislation
), d
istr
ibutable
profit
s legisl
ation, taxation legislation and pensions legislation,
and w
e as
s
e
s
se
d the e
x
tent o
f com
pl
ian
ce w
it
h the
s
e l
aw
s a
nd
re
gul
a
tio
ns a
s par
t of o
ur pr
oc
ed
ur
es o
n the r
el
ated fi
nan
cial
statement items.
Se
co
ndl
y, the Gr
oup i
s sub
je
c
t to man
y othe
r l
aw
s a
nd r
eg
ul
ati
on
s
w
her
e th
e con
s
equ
enc
es o
f non
-
com
pl
ian
ce co
uld h
av
e a mate
r
ial
ef
fe
c
t on am
ou
nt
s or di
sc
los
ur
e
s in the f
in
anc
ial s
t
atem
ent
s
, for
ins
t
anc
e thr
ou
gh th
e imp
os
iti
on of f
in
es o
r li
ti
gati
on
. We ide
ntif
ie
d
the fo
ll
ow
i
ng ar
e
as a
s tho
se m
os
t l
ikely to h
av
e su
ch an ef
fec
t:
health and safet
y
, anti-brib
er
y and
cor
r
uption, consider
ing
dea
li
ngs w
i
th g
ov
er
n
ment c
us
tom
er
s
, em
plo
y
me
nt l
aw, an
d
cer
tai
n asp
e
c
t
s of com
pa
ny le
gi
sl
ati
on r
ec
og
nisi
ng th
e r
egu
l
ated
natu
re o
f the M
edi
c
al di
v
is
ion a
c
ti
v
i
tie
s an
d it
s l
ega
l for
m
.
Au
dit
ing s
t
and
ar
ds l
im
it th
e r
equ
ir
ed au
di
t pr
oc
ed
ur
es to i
dent
if
y
non
-
com
pl
ian
ce w
it
h the
s
e l
aw
s a
nd r
e
gul
ati
on
s to enq
uir
y of th
e
Dir
ec
to
r
s an
d oth
er ma
nag
em
ent an
d ins
pe
c
tio
n of r
egu
l
ator
y an
d
legal corre
spondence, if any
. Therefore, if a breach of operational
re
gul
a
tio
ns is n
ot di
sc
los
e
d to us or e
v
id
ent f
r
om r
ele
v
ant
cor
r
e
sp
on
den
ce, an a
udi
t w
il
l not de
tec
t th
at br
e
ach
.
INDEPENDENT A
UDITOR’S REPORT
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
10
0
Cont
ex
t of the a
bilit
y of the a
udit t
o detect fr
aud
or breaches of law or regulati
on
O
w
in
g to the i
nhe
re
nt li
mit
ati
on
s of an au
dit
, th
er
e is an
una
vo
ida
ble r
i
sk th
at w
e may n
ot ha
ve d
etec
te
d s
ome m
ater
i
al
mis
s
t
ateme
nt
s in th
e fin
an
cial s
t
atem
ent
s
, ev
en t
hou
gh w
e ha
ve
pr
op
er
ly p
l
ann
ed a
nd p
er
for
m
ed o
ur aud
it in a
cco
r
dan
ce w
it
h
audi
tin
g s
ta
nda
r
ds
. Fo
r exa
mpl
e, th
e fu
r
ther r
em
ov
ed n
on
-
comp
l
ianc
e w
it
h l
aw
s an
d r
egu
l
ati
ons i
s fr
o
m the e
v
ent
s an
d
tr
a
ns
ac
t
ion
s r
efl
ec
te
d in th
e f
inan
cia
l st
atem
ent
s
, th
e le
s
s li
kely
the in
her
e
ntly l
imi
ted p
r
oce
dur
e
s r
eq
uir
ed b
y au
dit
ing s
t
an
dar
d
s
wo
uld i
dent
if
y it
.
In ad
dit
ion
, as w
i
th an
y au
dit
, th
er
e re
mai
ne
d a high
er r
i
sk of
non
-
dete
c
tio
n of f
r
au
d, a
s the
s
e ma
y inv
ol
ve co
ll
usi
on
, for
ge
r
y,
intenti
ona
l omi
s
sio
ns
, mis
r
epr
e
s
enta
tio
ns
, or t
he o
ver
ri
de of
inter
n
al cont
r
ol
s
. O
ur au
dit p
r
oce
dur
e
s ar
e de
si
gne
d to dete
c
t
mater
i
al mi
ss
t
atem
ent
. We ar
e not r
e
sp
on
sibl
e for p
r
ev
enti
ng
non
-
com
pl
ian
ce or f
r
a
ud an
d c
ann
ot be e
xp
ec
te
d to dete
c
t no
n-
compliance w
ith all la
ws and re
gulation
s.
8
W
e ha
ve not
hing t
o repor
t on the o
ther
infor
mation
in th
e A
nnual Repor
t
Th
e Di
re
c
tor
s a
r
e re
sp
on
sib
le fo
r the ot
her i
nfor
m
ati
on pr
e
s
ented
in the A
nnual Rep
or
t tog
eth
er w
it
h the f
in
anc
ial s
t
ateme
nt
s
. Our
opin
ion o
n the f
in
anc
ial s
t
atem
ent
s do
e
s not co
v
er th
e othe
r
infor
mation a
nd
, acco
r
din
gly, we do n
ot ex
pr
e
s
s an au
dit o
pin
ion
or
, except as e
xp
li
ci
tly s
t
ated b
elo
w, any f
or
m of a
s
sur
ance
conclusion ther
eon.
Our r
e
sp
ons
ibi
li
t
y i
s to r
ea
d the ot
her i
nfor
m
ati
on an
d, in d
oin
g so
,
con
sid
er w
he
the
r
, base
d on o
ur f
ina
nci
al s
tate
ment
s a
udi
t w
or
k
,
the inf
or
m
atio
n the
r
ein is m
ater
i
all
y mis
s
t
ated o
r inco
ns
is
tent w
it
h
the f
in
anc
ial s
t
ateme
nt
s or ou
r aud
it k
no
w
le
dg
e. B
as
ed s
ol
ely o
n
that w
or
k we hav
e no
t ide
ntif
ie
d ma
ter
ial m
is
s
ta
tement
s in the
other infor
mation.
Strateg
ic Re
por
t and D
irec
tors
’ Re
por
t
Ba
se
d s
ole
ly on o
ur w
or
k on t
he ot
her in
for
m
atio
n:
–
we ha
ve n
ot id
enti
f
ied m
ater
i
al mi
ss
t
atem
ent
s in th
e Str
ategic
Repo
r
t and th
e Dir
e
c
tor
s’ Repo
r
t;
–
in our o
pini
on th
e info
r
mat
ion g
iv
en i
n tho
se r
e
por
t
s fo
r the
fi
nan
cial y
e
ar is c
ons
is
tent w
i
th th
e fi
nan
cial s
t
atem
ent
s; an
d
–
in our o
pini
on th
os
e r
ep
or
ts h
av
e be
en p
re
pa
r
ed in a
cco
rd
anc
e
w
ith t
he C
omp
an
ie
s Ac
t 2
0
06
.
Dire
c
tor
s’ Remuner
ation
Repor
t
In our o
pini
on th
e p
ar
t of the D
ir
ec
tor
s
’ Remu
ner
ation Rep
or
t to
be au
di
ted ha
s be
en p
ro
pe
r
ly p
re
pa
re
d in a
ccor
d
anc
e w
ith t
he
Co
mp
anie
s A
c
t 2
0
0
6
.
Disclosu
res of emerging a
nd principal risks and
longer-ter
m
viabil
it
y
We ar
e re
qui
re
d to pe
r
for
m pr
o
ce
dur
e
s to ide
ntif
y w
het
her t
her
e
is a mate
r
ial i
nco
nsi
s
tenc
y bet
w
e
en th
e Dir
e
c
tor
s’ dis
clo
sur
e
s in
re
sp
ec
t o
f eme
r
ging a
nd p
r
inc
ip
al r
is
k
s and t
he v
iab
il
it
y st
atem
ent,
and t
he f
ina
nci
al s
tate
ment
s a
nd o
ur aud
it k
no
w
le
dg
e.
Ba
se
d on t
ho
se p
ro
ce
dur
e
s
, we h
av
e not
hing m
ater
i
al to ad
d or
dr
a
w at
tent
ion to in r
e
l
atio
n to:
–
the Di
re
c
tor
s
’ conf
ir
matio
n w
ith
in the v
i
abi
li
t
y s
t
atem
ent p
ag
e 5
4
that t
he
y ha
ve c
ar
r
ied ou
t a r
obu
s
t as
s
es
sm
ent of t
he em
er
gin
g
and p
r
inc
ip
al r
is
k
s fa
cin
g th
e Gr
oup, i
ncl
udin
g th
os
e tha
t wo
uld
thr
ea
ten it
s b
usi
ne
s
s mo
del
, f
u
tur
e p
er
for
ma
nce
, so
lve
nc
y
and
liquidi
t
y;
–
the P
r
in
cip
al Ri
sk
s di
sc
los
ur
e
s de
sc
r
ibi
ng th
e
se r
i
sk
s an
d ho
w
eme
rg
ing r
isk
s ar
e ide
ntif
ie
d, a
nd e
xp
l
aini
ng ho
w th
ey a
r
e bei
ng
man
age
d an
d mit
iga
ted; and
–
the Di
re
c
tor
s
’ ex
pl
an
ati
on in th
e v
iab
il
it
y st
ateme
nt of ho
w th
ey
hav
e as
s
e
s
se
d th
e pr
os
pe
c
t
s of the G
r
oup, o
ve
r w
hat p
er
i
od
the
y ha
ve d
one s
o an
d w
hy t
he
y con
sid
er
e
d that p
er
i
od to b
e
app
ro
pr
i
ate, an
d the
ir s
tate
ment a
s to w
het
her t
he
y hav
e a
re
as
on
abl
e ex
pe
c
ta
tio
n that t
he Gr
o
up w
il
l be ab
le to co
ntin
ue in
ope
r
at
ion a
nd me
et i
t
s li
abil
i
tie
s as t
he
y f
all d
ue o
ve
r the p
er
i
od
of the
ir as
s
e
ss
me
nt, in
clu
din
g any r
el
a
ted di
sc
lo
sur
e
s dr
a
w
ing
attention t
o any necess
ar
y qualifications or assumptions.
We ar
e al
s
o r
eq
uir
ed to r
e
v
ie
w the V
iabil
it
y St
ateme
nt, s
et ou
t on
pa
ge 5
4 under t
he L
is
t
ing R
ule
s
. Ba
se
d on t
he ab
ov
e pr
o
ce
dur
e
s,
we h
av
e con
clu
de
d that t
he ab
o
ve di
sc
lo
sur
e
s ar
e mate
r
ial
ly
con
sis
tent w
i
th th
e f
ina
nci
al s
tate
ment
s a
nd ou
r aud
it k
no
w
le
dg
e.
Our w
or
k i
s l
imite
d to as
s
e
s
sin
g the
s
e mat
te
r
s in th
e conte
x
t of
only t
he k
no
w
le
dg
e acq
uir
ed d
ur
in
g our f
in
anc
ial s
t
ateme
nt
s
audi
t
. A
s w
e c
ann
ot pr
e
dic
t a
ll f
ut
ur
e ev
ent
s o
r con
di
tio
ns an
d as
sub
se
que
nt ev
ent
s m
ay r
e
sul
t in ou
tcom
es t
hat ar
e in
con
si
ste
nt
w
ith j
udg
em
ent
s th
at we
re r
e
as
on
abl
e at the t
ime t
he
y we
re m
ad
e,
the a
bs
enc
e of any
thin
g to r
ep
or
t on the
s
e s
tate
ment
s i
s not a
guar
antee a
s to the G
ro
up’
s an
d Co
mp
any
’s longe
r-
ter
m v
ia
bil
it
y.
INDEPENDENT A
UDITOR’S REPORT
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
101
Cor
p
or
ate gover
na
nce dis
clo
sure
s
We ar
e re
qui
re
d to pe
r
for
m pr
o
ce
dur
e
s to ide
ntif
y w
het
her t
her
e
is a mate
r
ial i
nco
nsi
s
tenc
y bet
w
e
en th
e Dir
e
c
tor
s’ cor
p
or
ate
go
ver
nance d
is
clo
sur
e
s an
d the f
in
anc
ial s
t
ateme
nt
s and o
ur
audit knowledge.
Ba
se
d on t
ho
se p
ro
ce
dur
e
s
, we h
av
e con
clu
de
d tha
t eac
h of th
e
fol
lo
w
ing i
s mater
ially c
on
sis
tent w
i
th th
e f
inan
cia
l st
atem
ent
s a
nd
our au
di
t kn
ow
l
ed
ge:
–
the Director
s’ statement
that they consider that the Annual
Repo
r
t and f
ina
nci
al s
tate
ment
s t
aken a
s a w
ho
le is f
ai
r
,
balance
d and understandable, and prov
ides the information
nec
es
s
a
r
y for sh
ar
eh
old
er
s to a
s
se
s
s th
e Gr
ou
p’
s pos
iti
on an
d
per
for
mance
, bus
ine
s
s mo
de
l and s
tr
ateg
y;
–
the s
ec
t
ion of t
he A
n
nua
l Repo
r
t des
cr
i
bin
g the w
or
k of the
Au
dit & R
isk C
om
mit
tee, inc
lud
ing t
he si
gni
fi
c
ant is
s
ue
s that t
he
Au
dit & R
isk C
om
mit
tee con
sid
er
ed i
n re
l
ati
on to th
e fi
nan
cia
l
st
atem
ent
s
, an
d ho
w the
s
e is
s
ue
s we
re a
dd
re
s
s
ed; an
d
–
the s
ec
t
ion of t
he A
n
nua
l Repo
r
t that de
s
cr
ib
e
s the r
e
v
ie
w of
the ef
fec
ti
v
en
es
s of t
he Gr
o
up’
s r
is
k man
age
me
nt and inte
r
na
l
control sy
stems
.
We ar
e re
qui
re
d to r
ev
i
ew t
he p
ar
t of the C
or
p
or
ate Gov
er
nance
Sta
teme
nt re
l
atin
g to the G
r
oup’s compl
ian
ce w
it
h the p
r
ov
i
sio
ns
of the U
K Co
r
po
r
ate G
ov
er
n
anc
e Co
de s
pe
cif
i
ed b
y the L
i
s
tin
g
Rule
s fo
r our r
e
v
ie
w. We hav
e not
hin
g to re
po
r
t in this r
e
sp
ec
t
.
9
W
e ha
ve not
hing t
o repor
t on the o
ther
matte
r
s on which we a
re required t
o
repor
t
by exception
Und
er th
e Co
mp
anie
s A
c
t 2
0
0
6
, we a
re r
e
qui
re
d to r
ep
or
t to you i
f,
in our opi
nion:
–
ade
quate a
cco
untin
g r
ec
or
ds h
av
e not b
ee
n kept b
y the p
ar
ent
Co
mp
any, or r
etur
n
s ad
eq
uate fo
r our au
di
t hav
e n
ot be
en
re
cei
v
ed f
r
om b
r
an
ch
es n
ot v
is
ite
d by u
s; or
–
the p
ar
ent C
omp
an
y f
inan
cia
l st
atem
ent
s a
nd th
e pa
r
t of
the D
ir
ec
to
r
s’ Remune
r
ati
on Rep
or
t to be au
di
ted ar
e n
ot in
agr
e
eme
nt w
ith t
he ac
cou
ntin
g re
co
rd
s an
d re
tur
n
s; or
–
cer
tai
n dis
cl
osu
re
s of D
ir
ec
to
r
s’ rem
uner
ation s
pe
ci
fi
ed b
y l
aw
ar
e not m
ade; o
r
–
we ha
ve n
ot r
ec
ei
ve
d al
l the i
nfor
m
ati
on an
d ex
pl
an
atio
ns w
e
re
qui
re f
or ou
r aud
it
.
We hav
e not
hin
g to re
po
r
t in the
s
e re
sp
ec
t
s
.
1
0 Respective re
sponsi
bili
ties
Dire
c
tor
s’
r
esp
onsib
ilitie
s
A
s e
xp
l
aine
d mo
r
e fu
lly i
n the
ir s
tate
ment s
et o
ut on p
a
ge 9
0,
the D
ir
ec
to
r
s ar
e r
es
po
nsi
ble f
or: the pr
ep
ar
at
ion o
f the f
in
anc
ial
st
atem
ent
s in
clu
din
g bei
ng s
ati
s
fi
ed th
at th
ey g
i
ve a tr
ue and
fa
ir v
ie
w; su
ch inte
r
nal c
ontr
o
l as th
ey d
eter
m
ine i
s ne
ce
ss
a
r
y to
ena
ble t
he pr
ep
ar
ation of f
in
an
cial s
t
atem
ent
s th
at ar
e fr
e
e f
ro
m
mater
i
al mi
ss
t
atem
ent
, w
heth
er du
e to fr
aud or e
r
r
or; ass
e
ss
ing
the G
ro
up an
d pa
r
ent C
omp
an
y’s abil
it
y to contin
ue a
s a goin
g
con
cer
n
, dis
c
los
ing
, as ap
pl
ic
ab
le, m
at
ter
s rel
ate
d to goi
ng
con
cer
n; an
d usi
ng th
e go
ing c
onc
er
n b
asi
s of ac
count
ing u
nle
s
s
the
y ei
the
r inten
d to li
quid
ate the G
r
oup o
r the p
ar
ent C
om
pa
ny or
to cea
se o
pe
r
ati
on
s, o
r ha
ve n
o r
eal
is
t
ic alte
r
nat
i
ve b
ut to do s
o.
Audi
tor’
s
r
e
spon
sibili
ties
Our o
bje
c
ti
v
es a
re to o
bt
ain r
ea
s
ona
ble a
s
sur
ance ab
ou
t w
heth
er
the f
in
anc
ial s
t
ateme
nt
s as a w
h
ole a
re f
r
ee f
r
om m
ater
ia
l
mis
s
t
ateme
nt, w
h
ethe
r due to f
r
a
ud or e
r
r
or
, and to is
s
ue
our op
ini
on in an a
udi
tor
’s rep
or
t. Re
as
ona
ble a
s
sur
ance i
s a
high l
ev
el of a
s
sur
ance, b
ut d
oe
s not g
uar
antee th
at an au
dit
con
duc
te
d in ac
cor
da
nce w
i
th I
S
A
s (UK
) w
ill a
lw
a
ys d
etec
t a
mater
i
al mi
ss
t
atem
ent w
he
n it e
xi
st
s
. Mi
ss
t
atem
ent
s c
an ar
ise
fr
om f
r
aud or er
r
o
r and a
re c
on
sid
er
ed m
ater
i
al if, in
di
v
idu
al
ly
or in a
ggr
e
gate, th
e
y coul
d r
ea
so
nab
ly b
e ex
pe
c
ted to inf
lu
enc
e
the e
con
om
ic de
cis
io
ns of u
se
r
s ta
ken on th
e b
asi
s of th
e
fi
nan
cial
st
ateme
nt
s.
A fu
lle
r de
s
cr
ipt
ion o
f our r
e
sp
ons
ibil
i
tie
s is p
r
ov
i
de
d on th
e F
RC
’
s
website at w
w
w.frc.org
.uk
/auditorsr
espon
sibilities
.
Th
e C
omp
an
y is r
eq
uir
ed to i
ncl
ude t
he
s
e fi
nan
cial s
t
atem
ent
s
in an an
nual f
in
anc
ial r
ep
or
t pr
ep
ar
e
d usi
ng th
e sin
gle e
lec
t
r
onic
re
po
r
ting fo
r
mat s
pe
cif
i
ed in t
he T
D E
S
EF Re
gul
at
ion
. T
his
audi
tor
’s rep
or
t pr
ov
i
de
s no a
s
sur
ance ov
er w
h
eth
er th
e annu
al
fi
nan
cial r
e
por
t ha
s be
en p
re
pa
re
d in a
ccor
d
anc
e w
ith t
hat fo
r
mat
.
1
1
The purpose of our a
udit work and t
o
whom we owe our respons
ibi
lities
Th
is r
ep
or
t is ma
de s
ol
ely to th
e C
omp
an
y’s memb
er
s
, a
s a
bo
d
y, in accor
d
ance w
i
th Ch
apter 3 o
f P
ar
t 1
6 of the C
om
pa
nie
s
Ac
t 2
0
06. O
ur au
di
t wo
r
k ha
s be
en un
der
t
aken s
o that w
e mi
ght
st
ate to th
e Co
mp
any
’s membe
r
s th
os
e mat
ter
s we ar
e r
e
quir
e
d
to st
ate to th
em in an a
udi
tor
’s repo
r
t and fo
r no oth
er p
ur
p
os
e.
T
o the f
ull
es
t ex
tent per
mit
ted b
y l
a
w, we do n
ot acc
ept o
r
as
sum
e r
es
po
nsi
bil
it
y to any
on
e othe
r tha
n the C
om
pa
ny an
d the
Co
mp
any
’s membe
r
s
, as a b
od
y, for ou
r aud
it w
or
k
, fo
r thi
s re
po
r
t,
or for the
opinions we have formed.
Michael Maloney
SENIOR ST
A
T
UTOR
Y AUDITOR
for an
d on b
eha
lf of K
P
M
G L
L
P
, St
atu
tor
y Au
di
tor
Char
ter
ed A
cc
ount
ant
s
1
5 Canada Squar
e
Lo
ndo
n E1
4 5
GL
Date: 2
2 S
epte
mbe
r 2
0
2
2
INDEPENDENT A
UDITOR’S REPORT
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
10
2
Cons
olidated income s
t
atemen
t
Year e
n
de
d 31 J
u
ly 2
022
Year e
n
de
d 31 J
ul
y 2
021
Notes
Headline
£m
Non-headline
(n
ot
e 3)
£m
To
t
a
l
£m
Headline
£m
Non-headline
(n
o
te 3
)
£m
To
t
a
l
£m
CONTINUING OPER
ATIONS
Revenue
1
2,566
–
2,566
2,406
–
2,406
Oper
ating costs
2
(2,149)
(300)
(2,449)
(2,034)
(46)
(2,080)
Operating profit/(loss)
2
417
(300)
117
372
(46)
326
In
te
rest rec
eivabl
e
4
14
–
14
9
–
9
In
te
rest pa
yable
4
(55)
–
(55)
(49)
–
(49)
Other f
inancing gains
/(
loss
es
)
4
–
20
20
–
(52)
(52)
Other finance income – retirement benefits
4
–
7
7
–
6
6
Finance (cos
ts
)/
income
4
(41)
27
(14)
(40)
(46)
(86)
Profit
/(loss) before taxation
376
(273)
103
332
(92)
240
T
axation
6
(104)
14
(90)
(96)
13
(83)
Profit
/(loss) for t
he year
272
(259)
13
236
(79)
157
DISCONTI
NUED
OPE
R
A
TIONS
Profit
/(loss) from discontinued operations
27
49
973
1,022
134
(6)
128
PR
OF
I
T/(LO
S
S
) FO
R TH
E Y
E
AR
321
714
1,035
370
(85)
285
Profit
/(loss) for t
he year attributable to:
Smiths Group sharehol
ders – continuing operations
270
(259)
11
235
(79)
156
Smiths Group sharehol
ders – discontinued oper
ations
49
973
1,022
134
(6)
128
Non-contr
olling interest
s
2
–
2
1
–
1
321
714
1,035
370
(85)
285
EARNI
NG
S P
ER
SHAR
E
5
Basic
267.1
p
71.7p
Basic – continuing
2.8p
39.4
p
Dilu
ted
266.0p
71.3
p
Diluted – continuing
2.8p
39.1
p
Refe
rence
s in
the consolidated income
st
atemen
t, consolidated statement
of comprehensive income, consolidated
bal
ance sheet,
con
s
ol
ida
ted s
t
atem
ent of ch
an
ge
s in e
qui
t
y and con
s
ol
id
ated c
a
sh
-f
lo
w st
ate
ment r
e
l
ate to note
s o
n pa
ge
s 1
1
6 to 1
63
, w
hic
h for
m an
integ
r
al p
ar
t of th
e co
ns
ol
id
ated a
cco
unt
s
.
CONSOLIDA
TED
PRIMARY ST
A
TEM
ENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
022
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
103
Cons
olidated s
t
atemen
t of comprehen
si
ve income
Notes
Ye
a
r e
nd
e
d
31 Ju
ly 2
022
£m
Y
ear ended
31 Ju
l
y 2
021
repres
ented*
£m
PR
OF
I
T FO
R T
HE Y
E
A
R
1,035
285
O
ther comprehensive income
(OCI)
O
CI which will
not be reclassified to the
income statement
:
Re-mea
surement of retirement benefits ass
ets and obligations
8
(17)
13
T
axation on
post-retirem
ent benefits movement
s
6
–
(6)
Fa
ir v
al
ue m
o
ve
me
nt
s on f
i
na
nc
ial a
s
s
et
s at f
a
ir v
al
ue t
hr
o
ug
h OC
I
14
(63)
4
(80)
11
O
CI which will be
recl
assified and reclas
sifications:
Fair value gains and re
cla
ssif
ic
ation adjustment
s:
– d
efe
r
r
ed i
n th
e pe
r
io
d o
n ca
sh
-f
l
ow a
nd n
et i
nv
e
s
tm
ent h
ed
ge
s
(82)
82
– r
e
cl
a
s
si
f
ie
d to in
co
me s
t
ate
men
t on c
a
sh
-f
lo
w a
nd n
et in
v
es
t
me
nt he
d
ge
s
5
2
(77)
84
Foreign exchange (FX
) movements net of recycling:
E
xchange gains/(loss
es) on transl
ation of
foreign operations
276
(166)
E
xc
ha
ng
e ga
in
s r
ec
ycl
ed t
o th
e inc
om
e s
ta
tem
ent o
n di
sp
os
a
l of b
us
in
es
s
(196)
–
80
(166)
T
otal
other comprehensive income
, net of
taxation
(77)
(71)
T
otal
comprehensive income
958
214
Attr
ibutab
le to:
Smiths Group s
hareholder
s
957
214
Non-contr
olling interest
s
1
–
958
214
T
otal
comprehensive income attributable to
Smiths Group shareholders arising
from:
Continuing operations
131
152
Discontinued operations
827
62
958
214
*
T
h
e co
m
pa
r
a
ti
v
e y
e
ar h
a
s be
e
n r
ep
r
e
se
nt
e
d to in
c
lu
d
e ‘F
ai
r v
al
ue m
o
v
em
e
nt
s o
n f
in
an
c
ia
l as
s
e
t
s at f
a
ir v
a
lu
e t
hr
o
ug
h O
CI
’ w
i
th
in t
h
e ‘O
CI w
h
i
ch w
i
ll n
o
t be r
e
c
l
as
s
i
f
ie
d to t
h
e in
co
m
e
st
a
te
me
nt
’ s
ub
to
ta
l r
a
th
e
r th
an w
i
t
hi
n th
e ‘O
C
I w
hi
c
h w
il
l b
e re
c
l
a
s
si
f
ie
d a
nd r
e
c
l
as
s
i
f
ic
a
ti
on
s’ s
ub
to
t
al
. T
h
is r
e
c
l
a
s
si
f
ic
a
ti
o
n ha
s n
o im
p
ac
t o
n to
t
al o
th
er c
o
mp
r
eh
e
ns
i
v
e in
c
om
e in t
h
e
co
mp
a
r
a
ti
v
e y
ea
r e
nd
e
d 31 J
ul
y 2
021.
CONSOLIDATED
PRIMA
RY ST
A
TEMENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
022
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
104
Cons
olidated b
al
ance sheet
Notes
31 Ju
ly 2
022
£m
31 Ju
l
y 2
021
£m
NON-CURR
ENT A
SSE
T
S
Intangible as
set
s
10
1,588
1,498
Pr
o
pe
r
t
y, pl
an
t an
d eq
uip
me
nt
12
243
212
Ri
ght of u
s
e as
s
et
s
13
106
108
Financial ass
ets – other investments
14
395
11
Retirement benefit assets
8
309
546
Def
er
r
e
d t
ax a
s
s
et
s
6
95
92
T
r
ad
e an
d ot
he
r re
ce
i
v
ab
le
s
16
69
59
Financial der
iv
ative
s
20
–
75
2,805
2,601
CURRENT ASSE
TS
Inventories
15
570
381
Cur
rent t
a
x r
ec
ei
v
a
bl
e
6
50
75
T
r
ad
e an
d ot
he
r re
ce
i
v
ab
le
s
16
738
630
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
18
1,056
405
Financial der
iv
ative
s
20
4
2
A
s
s
et
s h
el
d fo
r s
al
e
27
–
1,243
2,418
2,736
TOT
AL AS
SETS
5,223
5,337
CURRE
NT LIABI
LITIES
Financial liabili
ties:
– bo
r
r
o
w
ing
s
18
(509)
(9)
– lease liabilitie
s
18
(29)
(27)
– financial deri
vati
ves
20
(27)
(3)
Prov
isions
23
(88)
(46)
T
r
ad
e an
d ot
he
r pa
y
ab
le
s
17
(682)
(530)
Cur
rent t
a
x p
ay
a
bl
e
6
(64)
(89)
Liabili
ties held for sale
27
–
(283)
(1,399)
(987)
NON-CU
RRENT
LIABILITIES
Financial liabili
ties:
– bo
r
r
o
w
ing
s
18
(538)
(1,372)
– lease liabilitie
s
18
(90)
(94)
– financial deri
vati
ves
20
(20)
–
Prov
isions
23
(247)
(241)
Retirement benefit obligations
8
(115)
(128)
Corp
or
ation tax payable
6
(3)
(5)
Deferr
ed tax liabilitie
s
6
(44)
(28)
T
r
ad
e an
d ot
he
r pa
y
ab
le
s
17
(46)
(59)
(1,103)
(1,927)
TOT
AL
LIA
BILITI
ES
(2,502)
(2,914)
N
ET
ASSETS
2,721
2,423
SHA
REHOLDER
S’ EQUIT
Y
Share cap
ital
24
136
149
Shar
e premium account
365
363
Capital re
demption reser
ve
26
19
6
Revaluation re
ser
ve
26
–
1
Merger re
ser
ve
26
235
235
Cumulativ
e transl
ation adjustment
s
487
509
Retained ear
nings
1,659
1,367
He
dg
e r
es
e
r
ve
26
(202)
(228)
T
otal shareholder
s’ equity
2,699
2,402
Non-
control
ling interes
t equit
y
26
22
21
TOT
AL EQU
IT
Y
2,721
2,423
Th
e ac
cou
nt
s on p
ag
e
s 103 to 16
3 we
re a
pp
r
ov
ed b
y th
e Bo
ar
d of D
ir
e
c
tor
s o
n 2
2 S
epte
mbe
r 2
02
2 an
d we
r
e sig
ne
d on it
s b
eh
al
f by
:
Paul Keel
Clare S
cherrer
CHIE
F E
XEC
U
T
I
V
E O
F
F
ICE
R
CHIEF F
I
N
A
NC
I
A
L OF
F
I
CER
CONSOLIDATED
PRIMA
RY ST
A
TEMENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
022
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
105
Consolida
ted stat
eme
nt o
f chang
es in equ
it
y
Notes
Share capital
and share
premium
£m
Other
reserves
£m
Cumulative
transl
ation
adjustment
s
£m
Retained
earnings
£m
Hedge
reser
ve
£m
Equity
shareholders’
funds
£m
Non-
controlling
interest
£m
To
t
a
l
equity
£m
At 31 J
uly 2
021
512
242
509
1,367
(228)
2,402
21
2,423
P
r
of
it f
or t
he y
e
ar
–
–
–
1,033
–
1,033
2
1,035
O
ther comprehensi
ve income:
– re-m
easurement of retirement benefits
af
te
r t
ax
–
–
–
(17)
–
(17)
–
(17)
– F
X mov
em
en
t
s net o
f r
ec
ycl
in
g
–
(1)
(22)
1
103
81
(1)
80
– fa
ir v
a
lu
e gai
ns a
nd r
e
l
ate
d t
ax
–
–
–
(63)
(77)
(140)
–
(140)
T
otal
comprehensive income for
the year
–
(1)
(22)
954
26
957
1
958
T
ransac
tions relating to owners
hip
interest
s:
Is
s
ue of n
e
w eq
ui
t
y s
ha
r
es
24
2
–
–
–
–
2
–
2
Pu
r
ch
as
e of s
ha
re
s b
y E
mp
lo
ye
e B
en
ef
it
Tr
u
s
t
–
–
–
(16)
–
(16)
–
(16)
Procee
ds from exercise of
share options
–
–
–
1
–
1
–
1
Share buyb
acks
24
(13)
13
–
(511)
–
(511)
–
(511)
Div
idends:
– equit
y shareholder
s
25
–
–
–
(150)
–
(150)
–
(150)
Share-based payment
9
–
–
–
14
–
14
–
14
At 31 J
uly 2
022
501
254
487
1,659
(202)
2,699
22
2,721
Notes
Share capital
and share
premium
£m
Other
reserves
£m
Cumulati
ve
transl
ation
adjustment
s
£m
Retained
earnings
£m
Hedge
reser
ve
£m
Equit
y
shareholders’
funds
£m
Non-
contr
oll
ing
int
erest
£m
To
t
a
l
equit
y
£m
At 31 J
uly 2
020
510
242
674
1,259
(312)
2,373
21
2,394
P
r
of
it f
or t
he y
e
ar
–
–
–
284
–
284
1
285
O
ther comprehensi
ve income:
– re-measur
ement of retirement benefits
af
te
r t
ax
–
–
–
7
–
7
–
7
– F
X mov
em
en
t
s net o
f r
ec
ycl
in
g
–
–
(165)
–
–
(165)
(1)
(166)
– fa
ir v
a
lu
e gai
ns a
nd r
e
l
ate
d t
ax
–
–
–
4
84
88
–
88
T
otal
comprehensive income for
the year
–
–
(165)
295
84
214
–
214
T
ransac
tions relating to owners
hip
interest
s:
E
xercises of share
options
24
2
–
–
–
–
2
–
2
Rec
eip
t of c
ap
i
ta
l fr
o
m no
n
-c
on
tr
ol
l
in
g
in
te
rest
–
–
–
–
–
–
1
1
Pu
r
ch
as
e of o
w
n sh
ar
e
s
24
–
–
–
(16)
–
(16)
–
(16)
Div
idends:
– equit
y shareholder
s
25
–
–
–
(185)
–
(185)
–
(185)
– non-controll
ing interest
–
–
–
–
–
–
(1)
(1)
Share-based payment
9
–
–
–
14
–
14
–
14
At 31 J
uly 2
021
512
242
509
1,367
(228)
2,402
21
2,423
CONSOLIDATED
PRIMA
RY ST
A
TEMENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
022
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
106
Con
s
oli
dated c
a
sh-f
lo
w s
t
atement
Notes
Ye
a
r e
nd
e
d
31 Ju
ly 2
022
£m
Y
ear ended
31 Ju
l
y 2
021
£m
Net cash inflow
from operating activities
28
279
535
Cash-fl
ows fr
om i
nvest
ing
activiti
es
E
xpenditure on capitalised development
(22)
(27)
E
x
pe
nd
it
ur
e o
n oth
er i
nt
an
gib
le a
s
s
et
s
(8)
(12)
Pu
r
ch
as
e
s of p
ro
p
er
t
y, pl
a
nt an
d eq
ui
pm
ent
(58)
(78)
Disposal
s of
proper
ty, plant
and equipme
nt
3
2
Ca
pi
t
al r
et
ur
n
ed b
y ot
he
r in
ve
s
t
me
nt
s
–
7
Acquisition of
business
es
–
(83)
Inves
tment in
financial ass
et – discontinued operations
–
(14)
Pr
o
ce
e
ds o
n dis
p
os
a
l of su
bs
id
iar
ies
, n
et of c
a
sh d
is
po
se
d
1,331
–
Ne
t ca
s
h
-f
lo
w u
se
d in i
nv
e
s
tin
g a
c
ti
v
i
ti
es
1,246
(205)
Cash-flow
s from financing
activ
ities
Procee
ds from exercise of
share options
24
2
2
Share buyb
acks
24
(511)
–
Pu
r
ch
as
e of s
ha
re
s b
y E
mp
lo
ye
e B
en
ef
it Tru
st
26
(16)
(16)
Pr
o
ce
e
ds r
e
cei
v
e
d on e
xer
c
is
e of e
mp
lo
ye
e s
har
e o
pt
io
ns
1
–
Set
tlement of cash-set
tled options
(1)
–
Div
idends paid
to equity shareholders
25
(150)
(185)
Lease payments
(38)
(44)
Red
uc
t
io
n an
d re
p
ay
m
ent o
f bo
r
r
o
w
in
gs
(295)
–
Ca
sh i
nf
lo
w f
r
om m
atu
r
ed d
er
iv
at
i
ve f
i
na
nc
ial i
ns
t
r
um
ent
s
23
4
Net cash-flow used in
financing activities
(985)
(239)
Ne
t in
cr
ea
s
e in c
a
s
h an
d c
as
h e
qu
i
va
l
en
t
s
540
91
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s a
t be
gi
nn
in
g of ye
a
r
405
366
Mo
ve
me
nt in n
et c
a
sh h
el
d in di
sp
o
s
al gr
o
up
48
(28)
Foreign exchange
r
ate
movements
62
(24)
Cash and cash equivalent
s at end
of year
18
1,055
405
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s a
t en
d of y
ea
r co
mp
r
is
e:
– ca
s
h at b
ank a
nd i
n ha
nd
242
219
– shor
t-t
er
m deposits
814
186
1,056
405
– ba
nk o
ve
r
dr
af
t
s
(1)
–
1,055
405
CONSOLIDATED
PRIMA
RY ST
A
TEMENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
022
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
107
Basi
s of pr
epar
ation
Th
e ac
cou
nt
s ha
ve b
ee
n pr
ep
ar
e
d in ac
cor
d
anc
e w
it
h Inter
n
ati
ona
l
Ac
cou
ntin
g St
and
ar
d
s in co
nfor
m
it
y wi
th t
he r
eq
uir
em
ent
s of t
he
Co
mp
ani
es A
c
t 2
0
06.
Th
e co
ns
ol
id
ate
d fi
nan
cia
l s
tate
men
t
s ha
ve b
ee
n pr
ep
ar
e
d und
er th
e
his
tor
ica
l cos
t c
onv
ent
ion m
o
dif
ie
d to in
clu
de r
e
v
alu
ati
on of c
er
tai
n
fi
nan
cia
l ins
t
r
um
ent
s
, sh
ar
e opt
ion
s an
d pe
ns
ion a
s
se
t
s and l
ia
bil
i
tie
s
,
hel
d at f
air v
a
lue a
s de
s
cr
i
be
d be
lo
w.
Going
concer
n
Th
e Di
re
c
tor
s are s
at
is
f
ie
d that t
he G
r
oup h
as a
de
qua
te re
s
our
ce
s to
cont
inu
e to op
er
a
te for a p
er
i
od n
ot le
s
s th
an 12 month
s fr
o
m the d
ate
of app
r
ov
a
l of th
e fi
nan
ci
al s
tate
me
nt
s and t
hat t
he
re a
re n
o ma
ter
ia
l
uncer
t
ainties around their asse
ssment. Accor
dingly,
the Direc
tor
s
cont
inu
e to ad
opt t
he go
in
g con
cer
n b
a
sis o
f acc
ount
ing
.
Th
e Gr
o
up’
s bu
sin
e
ss a
c
ti
v
i
tie
s
, to
geth
er w
i
th th
e f
ac
to
r
s l
ikely to
af
fe
c
t i
t
s fu
tu
re d
e
vel
op
men
t, p
er
for
m
anc
e an
d po
sit
io
n, ar
e s
et o
ut in
the S
tr
a
tegi
c Rep
or
t on p
age
s 5 to 5
5
. T
he G
ro
up’s fina
nci
al p
osi
ti
on
,
ca
sh
-f
lo
w
s
, li
qui
di
t
y a
nd b
or
r
o
w
ing f
a
cil
i
tie
s ar
e d
es
cr
ibed i
n the C
FO
re
v
ie
w s
ec
t
ion o
n p
age
s 15 to 1
6.
O
the
r f
ac
tor
s cons
ide
r
ed b
y th
e Bo
ar
d a
s pa
r
t of thei
r goi
ng c
onc
er
n
ass
es
sment included the inherent uncert
ainties in cash-flo
w
for
e
c
as
t
s
. Ba
s
ed o
n the a
bo
ve
, the D
ir
e
c
tor
s h
av
e co
ncl
ud
ed th
at
the G
r
oup i
s we
ll p
l
ace
d to ma
na
ge i
t
s f
ina
nci
ng an
d oth
er b
usi
ne
s
s
r
isk
s s
at
is
f
ac
to
r
ily, and t
he
y ha
ve a r
e
as
on
ab
le ex
pe
c
t
ati
on th
at th
e
Gr
oup w
i
ll h
av
e ad
eq
uate r
e
so
ur
ce
s to co
ntin
ue in o
pe
r
ati
on f
or at
lea
s
t 12 months f
r
om t
he si
gni
ng d
ate of th
es
e f
in
anc
ial s
t
atem
ent
s
.
Th
e
y the
r
efor
e co
ns
id
er it a
pp
ro
pr
i
ate to ad
opt t
he g
oin
g co
nce
r
n
ba
sis o
f acc
ount
ing i
n pr
ep
ar
i
ng t
he f
ina
nc
ial s
t
atem
ent
s
.
Key e
s
timates and
signific
ant judgement
s
Th
e pr
e
pa
r
ati
on of t
he a
cco
unt
s in c
onfo
r
mi
t
y w
i
th g
ene
r
a
lly a
cce
pted
acc
ount
ing p
r
in
cip
le
s r
equ
ir
e
s man
ag
eme
nt to ma
ke es
ti
mate
s an
d
jud
gem
ent
s t
hat af
fec
t t
he r
ep
or
ted am
ou
nt
s of as
s
et
s an
d l
iab
il
it
ie
s
and d
is
cl
osu
re o
f cont
ing
ent a
s
se
t
s and l
ia
bil
i
tie
s at t
he date o
f the
acc
ount
s a
nd th
e r
ep
or
ted am
oun
t
s of r
ev
enu
e
s and e
xp
en
s
es d
ur
in
g
the r
ep
or
tin
g p
er
io
d
. Ac
t
ual r
e
su
lt
s ma
y di
f
f
er f
ro
m th
es
e e
s
tim
ate
s.
Th
e key s
o
ur
ce
s of e
st
imat
io
n unc
er
tai
nt
y to
get
he
r w
ith t
he
significant judgements and
assumptions used for these consolidated
fi
nan
cia
l s
tate
men
t
s ar
e se
t out b
el
o
w.
S
ource
s of
e
stim
ation un
cer
ta
int
y
Impa
irment reviews of intangi
ble assets
In c
ar
r
y
in
g ou
t imp
air
ment r
ev
i
ew
s o
f int
ang
ibl
e as
s
et
s
, a num
be
r
of sig
nif
i
c
ant as
s
umpt
io
ns h
av
e to be m
ad
e w
hen p
r
ep
ar
in
g c
as
h-
fl
ow p
r
oje
c
ti
on
s to dete
r
min
e the v
alue in u
se o
f the a
s
se
t or c
as
h
gen
er
ating un
it (
CG
U). T
h
es
e in
clu
de t
he f
ut
ur
e r
a
te of mar
ket
gr
ow
th
, dis
co
unt r
a
tes
, th
e ma
r
ket de
man
d for t
he p
r
odu
c
t
s
acq
uir
e
d, th
e f
ut
ur
e pr
of
it
ab
il
it
y of acq
uir
e
d bus
ine
s
s
e
s or pr
o
du
c
t
s,
le
vel
s of re
imb
ur
s
em
ent
, and s
ucc
es
s i
n obt
ain
ing r
e
gul
ator
y
app
r
ov
a
l
s
. If a
c
tua
l r
es
ult
s d
if
fer or ch
an
ge
s in e
xp
ec
t
at
ion
s ar
i
se
,
imp
air
m
ent c
har
g
e
s ma
y be r
e
quir
e
d w
hic
h wo
ul
d ad
v
er
s
el
y imp
ac
t
oper
ating result
s.
Cr
it
ic
al e
s
ti
mate
s
, and t
he ef
fec
t of v
a
r
ian
ce
s in t
he
se e
s
ti
mate
s
, ar
e
dis
cl
os
ed i
n note 1
1
.
Retirement benefit
s
Dete
r
min
ing t
he v
al
ue of t
he f
ut
ur
e def
i
ne
d ben
ef
it o
bl
ig
ati
on in
vo
lv
es
sig
nif
ic
a
nt es
t
imate
s in r
e
sp
ec
t o
f the a
s
su
mpti
on
s us
ed to c
a
lcu
l
ate
pr
e
se
nt v
alu
e
s. T
h
es
e in
cl
ude f
u
tur
e m
or
ta
li
t
y
, dis
co
unt r
a
te and
inf
l
ati
on
. Th
e Gr
o
up us
e
s pr
e
v
io
us ex
p
er
ie
nce a
nd in
de
pe
nd
ent ac
t
uar
ial
ad
v
ic
e to se
le
c
t the v
alue
s for c
r
it
ic
al e
s
ti
mate
s
. A po
r
tion of U
K pe
nsi
on
li
abil
i
tie
s ar
e i
ns
ur
ed v
ia b
ul
k an
nui
t
y p
ol
ic
ie
s w
hic
h br
o
ad
ly matc
h th
e
sc
hem
e ob
li
gat
ion to i
de
ntif
i
ed gr
o
ups o
f pen
si
on
er
s
. T
he
s
e as
s
et
s ar
e
v
alu
ed b
y an e
x
ter
n
al qu
al
if
ie
d ac
t
ua
r
y at the a
c
tu
ar
ia
l v
alu
ati
on of th
e
corr
esp
onding liabilit
y
, reflec
ting this mat
ching rel
ationship.
Th
e Gr
o
up's pr
in
cip
al d
ef
ine
d be
nef
i
t pe
nsi
on p
l
an
s ar
e in th
e UK
and t
he U
S and t
he
s
e ha
ve b
ee
n cl
os
ed s
o th
at no f
u
tur
e b
en
efi
t
s
ar
e acc
r
ue
d. C
r
it
ic
al e
s
tim
ate
s for t
he
s
e pl
an
s
, an
d the ef
fec
t of
v
ar
ia
nce
s in t
he
s
e es
t
imate
s
, ar
e di
sc
lo
se
d in n
ote 8
.
Pr
ov
isions f
or liabil
ities
and char
ge
s
Th
e Gr
o
up ha
s ma
de p
r
ov
i
sio
ns fo
r cl
a
ims a
nd l
it
ig
atio
ns w
h
er
e
it ha
s ha
d to def
en
d it
s
el
f ag
ain
st p
r
oc
ee
din
gs b
ro
ug
ht by ot
he
r
pa
r
ties
. T
h
es
e p
ro
v
is
io
ns h
av
e be
en m
ade f
or th
e be
s
t e
s
tim
ate
of the e
xp
e
c
ted e
xp
en
dit
ur
e r
eq
uir
e
d to set
tle ea
ch ob
l
iga
tio
n,
alth
ou
gh th
er
e c
an b
e no g
uar
antee th
at su
ch p
ro
v
i
sio
ns (
w
hi
ch
may b
e su
bje
c
t to p
otenti
al
ly mate
r
ia
l re
v
is
io
n fr
o
m tim
e to tim
e)
w
ill a
ccu
r
ate
ly pr
e
dic
t t
he a
c
tua
l cos
t
s a
nd l
iab
il
it
ie
s th
at ma
y be
incurre
d. The most significant of
thes
e litigation provisions are
described below
.
Joh
n Cr
a
ne, I
nc
. (
J
CI
), a sub
sid
iar
y of t
he Gr
o
up, is o
ne of m
an
y co
-
defe
nd
ant
s in l
it
ig
atio
n r
el
at
ing to p
r
odu
c
t
s pr
e
v
io
usl
y man
uf
a
c
tur
e
d
w
hic
h cont
ai
ne
d asb
e
s
tos
. Pr
o
v
is
ion o
f £
2
2
9m (
F
Y
2
0
21
: £
212m) h
as
be
en ma
de f
or th
e f
ut
ur
e defe
nce c
os
t
s w
hi
ch th
e Gr
o
up is e
xp
ec
te
d
to inc
ur an
d the e
xp
e
c
ted c
os
t
s of f
ut
ur
e ad
v
er
se jud
ge
ment
s
aga
ins
t J
CI. W
hil
s
t we
ll-
e
s
ta
bl
ish
ed i
nci
de
nce c
ur
ve
s c
an b
e us
e
d to
es
ti
mate t
he l
ikely f
u
tur
e p
at
te
r
n of as
be
s
tos
-r
el
ated dis
e
as
e, J
CI’s
cl
ai
ms ex
p
er
i
enc
e is si
gni
f
ic
antl
y imp
ac
te
d b
y oth
er f
ac
to
r
s w
hi
ch
influence the
US litigation environment. These c
an include
: changing
app
r
oa
che
s o
n the p
ar
t of th
e pl
a
inti
f
f
s’ bar; chan
gin
g at
t
it
ude
s
amo
ng
st t
he ju
di
cia
r
y at bot
h tr
ia
l and a
pp
el
l
ate le
ve
l
s; an
d le
gi
sl
ati
v
e
and p
r
oce
du
r
al c
han
ge
s in b
oth t
he s
t
ate an
d fed
er
al cour
t s
y
s
tem
s.
Be
c
aus
e of t
he si
gni
f
ic
ant un
cer
t
aint
y as
so
ci
ated w
i
th t
he f
ut
ur
e le
ve
l
of as
be
s
tos c
l
aim
s and o
f the c
os
t
s ar
ising o
ut o
f the r
e
l
ated l
i
tig
ati
on
,
the
re c
a
n be n
o gua
r
a
ntee th
at th
e as
s
umpt
ion
s us
e
d to e
st
imate t
he
pr
ov
i
si
on w
il
l r
es
ult i
n an ac
cur
ate pre
di
c
tio
n of th
e ac
t
ual c
os
t
s th
at
wil
l be incur
re
d.
In qua
nti
f
yin
g th
e ex
pe
c
ted c
os
t
s JC
I ta
kes a
cco
unt of t
he ad
vic
e of
an ex
pe
r
t in asb
e
sto
s l
iab
il
it
y es
tim
ati
on
. T
he fo
ll
ow
i
ng e
s
tim
ate
s
we
re m
ad
e in pr
e
pa
r
in
g the p
r
ov
i
sio
n c
alc
ul
at
ion:
–
the per
iod o
ve
r w
hic
h the e
xp
en
di
tur
e c
an b
e r
el
iab
ly e
s
tim
ated
is ju
dg
ed to b
e ten y
ea
r
s
, ba
s
ed on p
a
st e
xp
er
ience r
e
gar
d
ing
signific
ant changes in the litigation environment that have
occ
ur
r
e
d ev
er
y fe
w y
ear
s and on t
he am
ou
nt of tim
e t
aken
in th
e pa
s
t for s
om
e of th
os
e ch
an
ge
s to imp
ac
t t
he b
r
oa
der
asb
e
s
tos l
it
igat
io
n env
i
r
onm
ent
. S
ee n
ote 2
3 f
or a s
en
sit
i
v
it
y
sho
w
in
g th
e imp
ac
t o
n the p
r
ov
i
si
on of r
ed
uc
ing o
r inc
r
ea
sin
g
this time horizon;
–
the f
ut
ur
e tr
en
d of le
ga
l co
st
s
, t
he r
a
te of f
utu
r
e cl
ai
ms f
il
ed
, the
r
ate of s
ucc
es
s
f
ul r
e
so
lu
tio
n of cl
a
ims
, a
nd th
e av
er
age am
ou
nt
of jud
ge
ment
s aw
ar
de
d ha
ve b
e
en pr
o
je
c
ted b
as
e
d on th
e pa
s
t
his
tor
y of J
CI c
l
aim
s an
d we
ll-
e
st
ab
li
sh
ed t
ab
le
s of as
be
s
tos
incidence projections, since this
is the best avail
able evidence.
Cl
aim
s hi
sto
r
y fr
o
m othe
r def
end
ant
s i
s not u
se
d to c
alc
ul
ate t
he
pr
ov
i
si
on b
ec
au
se J
CI
’s defenc
e st
r
ate
g
y ge
ner
ates a si
gni
f
ic
ant
ly
dif
fer
ent p
at
ter
n of leg
al co
st
s a
nd s
et
t
lem
ent e
xp
en
se
s
. S
ee n
ote 2
3
for a s
en
si
ti
v
i
t
y s
ho
w
ing t
he r
ange of e
xp
e
c
ted f
u
tur
e sp
en
d.
T
itef
le
x Co
r
p
or
at
io
n, a s
ubs
idi
ar
y of th
e Gr
ou
p in th
e F
lex-
T
ek di
v
is
ion
,
has r
e
cei
v
e
d a numb
er o
f cl
ai
ms f
r
om in
su
r
an
ce co
mp
ani
es s
e
ek
ing
re
co
mp
ens
e o
n a sub
ro
ga
ted b
as
is fo
r th
e ef
fe
c
t
s of d
ama
ge a
ll
eg
edl
y
ca
us
ed b
y l
igh
tnin
g s
tr
ike
s in r
el
ation to i
t
s f
lex
ib
le ga
s pip
in
g
pr
od
uc
t
. It h
as a
l
s
o r
ece
i
ve
d a num
be
r of pr
o
duc
t l
i
abil
i
t
y c
l
aim
s
re
ga
r
din
g thi
s pr
od
uc
t
, so
me i
n the f
or
m of p
ur
p
or
ted c
l
as
s a
c
tio
ns
.
T
itef
le
x Co
r
p
or
at
io
n be
li
ev
e
s that i
t
s pr
o
du
c
t
s ar
e a s
afe an
d ef
fec
ti
v
e
me
ans o
f del
i
v
er
in
g ga
s w
he
n ins
t
al
le
d in ac
cor
d
anc
e w
ith t
he
man
uf
ac
t
ur
er
’s ins
tr
u
c
tio
ns an
d lo
c
al an
d na
tio
nal c
od
es; h
o
we
v
er
,
so
me cl
aims ha
v
e be
en s
et
tl
ed o
n an in
di
v
i
dua
l ba
sis w
i
th
ou
t
adm
is
si
on of l
ia
bil
it
y. Pro
v
i
sio
n of £
52
m (F
Y
2
0
21: £47
m
) ha
s be
en
mad
e fo
r the c
os
t
s w
hi
ch th
e Gr
ou
p is e
xp
ec
te
d to in
cur in r
e
sp
e
c
t of
the
s
e cl
a
ims
. In p
r
ep
ar
in
g th
e pr
ov
i
si
on c
al
cul
at
io
n, ke
y es
t
imate
s
ACCOUNT
ING POLICIES
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
10
8
hav
e b
ee
n mad
e ab
ou
t th
e imp
ac
t of s
a
fe in
st
al
l
at
ion i
nit
iat
i
ve
s on t
he
le
vel o
f fu
tu
re c
l
aim
s
. S
ee n
ote 2
3 f
or a s
en
sit
i
v
it
y sho
w
in
g the i
mp
ac
t
on th
e pr
o
v
isi
on of r
e
duc
in
g or in
cr
ea
sin
g th
e ex
pe
c
ted i
mp
ac
t
.
Ho
we
v
er
, bec
au
s
e of th
e sig
nif
ic
a
nt unc
er
tai
nt
y a
s
so
ci
ated w
i
th t
he
fu
tu
re l
ev
el of c
l
aim
s
, th
er
e c
an b
e no gu
ar
a
ntee t
hat t
he a
ss
ump
tio
ns
us
ed to e
s
tim
ate th
e pr
o
v
isi
on w
il
l r
e
sul
t in an ac
cur
ate pr
ed
ic
ti
on of
the a
c
tu
al co
st
s t
hat m
ay b
e in
cur
r
e
d.
T
ax
ation
Th
e Gr
o
up ha
s r
ec
ogn
is
ed d
efe
r
r
ed t
ax a
s
s
et
s of £103
m
(F
Y
2
0
21: £
14
4
m) r
e
l
atin
g to lo
s
se
s an
d £69m (
F
Y
2
0
21
: £6
5
m
)
rel
ating t
o the John
Cr
ane, Inc. and
Titeflex Cor
por
ation litigation
pr
ov
i
si
on
s. T
h
e re
co
gn
iti
on of a
s
se
t
s pe
r
tain
ing to t
he
s
e item
s
re
qui
r
es m
an
age
me
nt to make s
igni
f
ic
ant e
s
ti
mate
s as to t
he
like
li
ho
od of r
e
al
is
at
io
n of the
s
e def
er
r
e
d ta
x a
ss
et
s a
nd th
e ph
as
ing
and at
tr
ibu
ti
on of f
ut
ur
e t
ax
ab
le pr
of
i
t
s
. T
his i
s ba
s
ed o
n a numb
er
of f
ac
tor
s, w
hi
ch ma
na
gem
ent u
se to a
s
se
s
s th
e ex
pe
c
t
ati
on th
at
the b
en
ef
it of t
he
s
e as
s
et
s w
il
l be r
e
al
is
ed
, inc
lu
din
g ex
pe
c
ted
future level
s of operating profit, expenditur
e on litigation,
pension
cont
r
ib
uti
on
s and t
he t
imin
g of th
e un
w
ind of o
the
r ta
x p
osi
ti
on
s.
T
axat
io
n li
abi
li
tie
s in
cl
ude
d pr
o
v
is
io
ns of £
3
8m (F
Y
2
021
: £
3
4
m
), the
maj
or
i
t
y o
f w
hic
h re
l
ate
d to the r
isk of ch
al
len
ge to t
he ge
o
gr
a
phi
c
all
oc
at
io
n of pr
of
it
s by ta
x au
th
or
i
tie
s
.
In ad
di
tio
n to the r
isk
s pr
o
v
ide
d fo
r
, the Gr
ou
p fa
ce
s a v
ar
iet
y of
othe
r ta
x r
i
sk
s
, w
hic
h r
es
ult f
r
om o
pe
r
at
ing i
n a com
ple
x glo
b
al
env
i
ro
nm
ent
, inc
lud
ing t
he o
ng
oin
g re
for
m o
f bot
h inter
n
ati
on
al an
d
dom
e
st
ic t
ax r
ule
s, n
ew a
nd o
ng
oin
g ta
x au
di
t
s in th
e Gr
ou
p’
s l
ar
ge
r
mar
ket
s a
nd t
he ch
al
len
ge to f
ul
f
il on
go
ing t
a
x com
pl
ia
nce f
il
in
g
and t
r
an
s
fer p
r
ic
ing o
bl
ig
ati
ons g
i
ve
n the s
c
al
e an
d di
ve
r
si
t
y of the
Group’
s g
lobal oper
ations.
Th
e Gr
o
up ant
ici
pate
s th
at a nu
mb
er of t
ax a
udi
t
s ar
e l
ikel
y to
con
clu
de i
n the n
ex
t 12 to 24 m
onth
s
. Du
e to the u
nce
r
taint
y
as
s
oc
iate
d w
ith s
uc
h ta
x i
tems
, i
t is p
os
si
ble t
hat t
he co
nc
lus
io
n
of op
en t
ax m
at
ter
s may r
e
sul
t in a f
ina
l ou
tcom
e th
at v
ar
i
es
sig
nif
ic
a
ntly f
r
om t
he am
ou
nt
s note
d ab
ov
e.
Revenue r
eco
gnition
Revenue is
reco
gnised as the perfor
mance obligations t
o deliver
pr
od
uc
t
s o
r se
r
vi
ce
s ar
e s
ati
s
fi
ed a
nd r
e
ven
ue i
s re
co
r
de
d ba
s
ed o
n
the a
mo
unt of co
ns
ide
r
at
ion e
xp
e
c
ted to b
e r
ece
i
ve
d in e
xcha
nge f
or
satisf
ying the perfor
mance obligations.
Smi
th
s Dete
c
ti
on an
d Sm
it
hs Inte
rc
onn
ec
t have m
ult
i-
ye
ar
cont
r
a
c
tua
l ar
r
ange
ment
s f
or th
e s
al
e of go
od
s an
d se
r
vi
ce
s
.
Wher
e these contr
ac
ts hav
e separ
ately identifiable components wi
th
dis
ti
nc
t p
at
ter
ns of del
i
v
er
y an
d cu
sto
me
r acc
ept
an
ce, r
e
ven
ue i
s
acc
ounte
d for s
e
pa
r
atel
y for e
ac
h id
enti
f
iab
le co
mp
one
nt
.
Th
e Gr
o
up ente
r
s into ce
r
tai
n cont
r
ac
ts fo
r agr
e
ed f
ee
s th
at ar
e
per
fo
r
me
d ac
ro
s
s mo
re t
han o
ne a
cco
unti
ng p
er
i
od an
d r
ev
en
ue i
s
re
co
gni
s
ed o
ve
r tim
e. E
s
t
imate
s ar
e r
e
quir
e
d at th
e ba
l
an
ce sh
eet
date w
he
n dete
r
min
ing t
he s
t
ag
e of co
mpl
eti
on of th
e co
ntr
a
c
t ac
t
i
v
it
y.
Th
is a
s
se
s
sm
ent r
e
quir
e
s th
e ex
pe
c
ted to
ta
l cos
t
s of t
he c
ontr
ac
t and
the r
em
ain
ing c
os
t
s to co
mp
lete th
e co
ntr
a
c
t to be e
s
ti
mate
d.
At 31 Ju
ly 2
0
2
2
, the G
r
oup h
el
d cont
r
a
c
t
s w
it
h a tota
l v
alu
e of £181
m
(
2
0
21
: £1
6
6m
), of w
hic
h £135m (
20
21: £99
m) h
ad b
ee
n de
li
v
er
e
d and
£47m (
2
0
21
: £67m) rem
ain
s f
ul
ly or p
ar
tia
ll
y uns
at
is
f
ie
d. £
3
7m of
the u
ns
at
is
f
ied a
mo
unt is e
xp
e
c
ted to b
e re
co
gn
is
ed in t
he c
omi
ng
ye
ar
, wi
th th
e r
ema
ind
er b
ein
g r
ec
ogn
is
ed w
i
th
in t
w
o y
ea
r
s
. A 5%
inc
re
as
e in t
he r
em
ain
ing c
os
t to co
mpl
ete th
e cont
r
a
c
t
s wo
ul
d ha
ve
re
du
ced G
r
oup o
pe
r
at
ing p
r
of
it in t
he c
ur
r
ent y
e
ar by l
e
s
s tha
n £
2m
(
2
0
21
: le
s
s tha
n £
2m
).
Valuat
ion of financial as
set
s
Fol
lo
w
in
g th
e s
ale of S
mi
th
s Me
dic
al t
he G
ro
up h
as r
ec
og
nis
e
d
a fi
nan
cia
l as
s
et fo
r the f
a
ir v
alu
e of th
e $1
0
0
m ad
di
tio
na
l
sale
s consider
ation that is con
tingent on the future share pr
ice
per
fo
r
man
ce of t
he en
l
ar
g
ed I
CU Me
di
ca
l
, Inc (
I
CU
) bu
sin
es
s
.
Th
e e
ar
no
ut r
e
qui
re
s t
he Gr
o
up to r
et
ain b
en
efi
cia
l ow
n
er
ship of
at le
as
t 1.25
m IC
U sh
ar
es a
nd f
or th
e IC
U sha
re p
r
ic
e to av
er
age
$
3
0
0 or mor
e fo
r any 3
0-
da
y pe
r
io
d dur
ing th
e fi
r
s
t thr
e
e ye
ar
s
po
st-
com
ple
tio
n, o
r for a
ny 4
5
-da
y pe
r
io
d in th
e fo
ur
th ye
ar p
os
t-
completion.
A
n ex
te
r
na
l v
alu
ati
on f
ir
m h
as b
ee
n en
gag
ed to u
nd
er
take M
onte
Ca
r
lo v
a
luat
io
n simu
l
ati
on
s in or
d
er to e
s
tim
ate the p
r
ob
ab
ili
t
y of the
fu
tu
re I
CU s
har
e p
r
ice e
xce
edi
ng $
30
0. Th
e
se v
a
luat
io
n sim
ul
ati
on
s
hav
e d
eter
mi
ne
d a f
air v
al
ue of £19m (U
S
$2
3m).
Signific
ant judg
ement
s made
in apply
ing
accounting p
ol
icie
s
Busine
s
s combinati
ons
On th
e ac
qui
sit
io
n of a bu
sin
es
s
, th
e Gr
o
up ha
s to ma
ke jud
gem
ent
s
on th
e id
enti
f
ic
ati
on of s
pe
ci
fi
c int
an
gibl
e as
s
et
s w
hi
ch ar
e
re
co
gni
s
ed s
ep
ar
ately fr
o
m go
od
w
i
ll an
d th
en am
or
tis
e
d ov
er t
hei
r
es
ti
mate
d us
ef
ul l
i
ve
s
. T
he
s
e inc
lu
de i
tems s
uc
h as b
r
an
d na
me
s
and c
us
tom
er l
is
t
s
, to w
hi
ch v
al
ue i
s fi
r
s
t at
tr
ibute
d at th
e tim
e
of acq
uis
it
ion
. T
he c
a
pi
ta
li
s
ati
on of th
e
se a
s
s
et
s and t
he r
el
ated
amo
r
tis
ati
on c
har
g
es a
r
e ba
se
d on j
ud
gem
ent
s a
bo
ut t
he v
al
ue an
d
eco
no
mic l
i
fe of su
ch i
tem
s.
W
her
e a
cqu
isi
ti
on
s ar
e sig
nif
i
c
ant, a
pp
ro
pr
i
ate ad
v
i
ce i
s so
ught
from profes
sional advis
er
s before making
such allocations.
W
her
e t
he Gr
o
up ha
s a co
ntr
act
ual o
pti
on to a
cqu
ir
e a bu
sin
es
s in
the future, managemen
t have applied j
udgement in
determining
w
heth
er i
t ha
s sub
s
ta
nti
v
e vot
ing r
ight
s in th
e bu
sin
es
s a
nd w
h
ethe
r
the b
usi
ne
s
s sh
oul
d be a
cco
unte
d for a
s a su
bsi
dia
r
y or as
s
o
ciate
.
In appl
ying these judgements, management have
rev
iewed whether
the o
pti
on an
d an
y re
l
ate
d leg
al
/comm
er
cia
l ag
re
em
ent
s p
ro
v
id
e
the G
r
oup w
i
th p
ow
er o
r si
gni
fi
c
ant inf
lu
en
ce ov
er t
he b
usi
ne
s
s
and h
av
e as
s
e
s
se
d w
het
he
r the
r
e ar
e any b
ar
ri
er
s t
hat p
re
v
ent th
e
Gr
oup f
r
om e
xer
ci
sin
g th
es
e r
i
ght
s
.
Retirement benefit
s
At 31 Ju
ly 2
0
2
2 th
e Gr
ou
p ha
s re
co
gn
is
ed £
3
0
9
m of r
etir
e
ment
ben
ef
it a
s
se
t
s (F
Y
2
0
21: £5
4
6m) an
d a net p
en
si
on a
ss
et of £19
4
m
(F
Y
2
0
21: £4
1
3m
), pr
incip
al
ly r
el
a
tin
g to the S
mi
th
s Ind
us
tr
i
es P
en
sio
n
Sc
he
me (
'
SIP
S'), w
h
ich a
r
is
e
s fr
o
m the r
ight
s of th
e emp
lo
ye
r
s to
re
co
ve
r th
e sur
p
lu
s at the e
nd of t
he l
if
e of th
e sc
he
me.
Th
e r
ec
og
nit
ion o
f thi
s sur
plus is a s
ign
if
ic
a
nt jud
ge
ment
. T
h
er
e is
jud
gem
ent r
e
qui
re
d in d
eter
m
inin
g w
het
he
r an unc
on
di
tio
nal r
ight of
ref
un
d ex
is
t
s b
as
e
d on th
e pr
o
v
is
ion
s of th
e r
ele
v
ant t
r
us
t d
ee
d an
d
r
ule
s
. Ha
v
in
g ta
ken le
gal a
d
v
ic
e w
ith r
e
gar
d to t
he r
i
ght
s of t
he G
ro
up
und
er th
e r
ele
v
ant T
r
u
st d
ee
d an
d r
ul
es
, i
t ha
s be
en d
eter
m
ine
d
that t
he s
ur
pl
us i
s re
co
v
er
a
ble b
y th
e Gr
o
up an
d the
r
efor
e c
an b
e
re
co
gni
s
ed
. In pa
r
ticu
l
ar
, in the o
r
din
ar
y cou
r
s
e of bu
sin
e
ss
, t
he
tr
u
ste
e
s of th
e sc
hem
e do n
ot ha
v
e a unil
ate
r
a
l po
w
er to ter
m
inate
and w
i
nd
-up t
he s
ch
eme o
r au
gme
nt be
nef
i
t
s. I
f th
e pe
nsi
on s
ch
eme
w
as w
ou
nd up w
h
ile i
t st
il
l ha
d mem
be
r
s
, the s
c
hem
e wo
ul
d ne
ed
to bu
y ou
t th
e be
nef
it
s of all me
mb
er
s
. T
he b
u
y
out w
o
uld c
os
t
sig
nif
ic
a
ntly m
or
e th
an th
e c
ar
r
y
in
g v
al
ue of th
e s
che
me l
ia
bil
it
ie
s
w
ith
in th
es
e f
in
anc
ial s
t
atem
ent
s w
hi
ch a
re c
a
lcu
l
ated i
n acc
or
da
nce
w
ith I
A
S 19
: Em
pl
oy
ee b
en
ef
it
s
.
Capitalisation o
f develop
ment c
ost
s
E
x
pe
ndi
tu
re i
ncu
r
r
ed i
n the d
ev
el
op
ment o
f maj
or ne
w p
ro
du
c
t
s is
ca
pi
ta
li
s
ed a
s inter
n
al
ly ge
ne
r
ate
d int
ang
ibl
e as
s
et
s on
ly w
h
en it h
as
be
en ju
dg
ed t
hat s
tr
i
c
t cr
i
ter
i
a ar
e met
, sp
e
cif
i
ca
ll
y in r
el
at
ion to t
he
pr
od
uc
t
s' tec
hni
ca
l fe
asi
bil
it
y and c
omm
er
ci
al v
ia
bil
it
y (th
e abi
li
t
y to
gen
er
ate pro
ba
bl
e fu
tu
re e
co
no
mic b
en
efi
t
s
).
ACCO
UNTING POL
ICIE
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
10
9
Th
e as
s
e
s
sme
nt of te
chn
ic
al fe
as
ibi
li
t
y and f
ut
ur
e com
me
rc
ial
v
iab
ili
t
y of dev
el
op
ment p
r
oje
c
t
s r
eq
uir
e
s si
gni
fi
c
ant ju
dg
eme
nt an
d
the u
se o
f as
su
mpt
ion
s
. Ke
y jud
ge
men
t
s ma
de in t
he as
s
e
s
sm
ent of
futur
e commercial v
iabilit
y include:
–
Scop
e of w
or
k to a
ch
ie
ve r
e
gul
ato
r
y cle
ar
ance (
w
he
re r
e
qui
r
ed
) –
inc
lud
ing t
he l
ev
el of te
s
tin
g e
v
ide
nce a
nd d
oc
ume
nta
tio
n;
–
Comp
eti
tor a
c
ti
v
it
y – inc
lud
ing t
he im
pa
c
t of p
otenti
al co
mp
eti
tor
pr
od
uc
t l
a
unc
he
s on th
e ma
r
ket pl
a
ce an
d cu
s
tome
r dem
an
d; and
–
Lau
nch t
ime
l
ine – in
cl
udi
ng ti
me an
d r
es
o
ur
ce r
eq
uir
ed to
es
t
ab
li
sh an
d sup
po
r
t the co
mm
er
cia
l l
aun
ch of a n
ew p
r
od
uc
t
.
T
ax
ation
A
s s
t
ated i
n the p
r
ev
i
ou
s se
c
ti
on '
S
our
ce
s of e
s
ti
mati
on
unce
r
tain
t
y
', the Gr
ou
p has r
e
co
gni
se
d de
fer
r
e
d ta
x a
s
set
s o
f
£1
0
3
m (
F
Y
2
0
21
: £1
4
4m
) re
l
atin
g to lo
s
se
s a
nd £
69m (F
Y
2
0
21
: £6
5
m
)
rel
ating t
o the John
Cr
ane, Inc. and
Titeflex Cor
por
ation litigation
pr
ov
i
si
on
s. T
h
e de
cis
io
n to re
co
gni
s
e defe
r
r
ed t
a
x as
s
et
s r
eq
uir
e
s
jud
gem
ent i
n deter
minin
g w
het
her t
he G
ro
up w
il
l be a
bl
e to uti
li
se
his
tor
ica
l ta
x lo
s
se
s in f
u
tur
e p
er
i
od
s
. It ha
s b
een c
on
clu
de
d
that t
he
re a
re s
uf
fic
ie
nt ta
x
abl
e pr
of
it
s i
n f
utu
r
e per
iods to
suppor
t recognition.
Th
e Gr
o
up ha
s al
so app
l
ie
d jud
gem
ent i
n the d
ec
isi
on
s ma
de to
recognise pro
visions against uncer
tain tax positions; please see
note 6 fo
r f
ur
ther d
et
ail
s.
Pr
es
ent
ation of h
eadl
ine p
rof
it
s
and
or
ganic gr
ow
th
In or
d
er to pr
o
v
id
e us
er
s o
f the a
cco
unt
s w
i
th a cl
ea
r and c
on
sis
te
nt
pr
e
se
ntat
io
n of th
e per
fo
r
man
ce of t
he G
ro
up’s ongoi
ng tr
adin
g
ac
ti
v
i
t
y, th
e inc
ome s
t
atem
ent i
s pr
e
se
nted i
n a thr
e
e-
co
lum
n
for
m
at w
it
h 'h
ea
dl
ine' p
ro
fi
t
s sh
ow
n s
ep
a
r
atel
y fr
o
m no
n-
he
adl
in
e
item
s
. In ad
di
tio
n, t
he G
ro
up r
ep
or
t
s or
ga
nic g
r
ow
th r
ate
s fo
r s
al
es
and p
r
of
it m
ea
sur
e
s
.
Se
e n
ote 1 for d
is
cl
osu
re
s of h
ea
dl
in
e op
er
at
in
g pr
of
it a
nd n
ote 2
9
for m
or
e inf
or
m
atio
n ab
ou
t the a
lter
n
ati
v
e p
er
for
m
anc
e me
as
ur
es
('AP
Ms'
) us
ed b
y th
e Gr
ou
p.
Jud
ge
ment i
s r
eq
uir
ed i
n dete
r
min
ing w
h
ich i
tem
s sh
oul
d be
included as non-headline. The amor
tisation
/
impairment of ac
quired
int
ang
ibl
es
, l
eg
ac
y l
ia
bil
i
tie
s
, mate
r
ia
l one
-
of
f items a
nd c
er
tai
n
re
-
me
asu
r
eme
nt
s ar
e in
clu
de
d in a s
ep
ar
a
te col
umn of t
he in
co
me
st
atem
ent
. S
e
e note 3 fo
r a br
e
akdo
w
n of t
he i
tems e
xclu
de
d f
ro
m
headline profit.
Ca
lcu
l
atin
g or
g
ani
c gr
ow
th al
so r
eq
uir
e
s jud
ge
men
t.
Or
ga
nic g
ro
w
th ad
jus
t
s th
e mo
v
eme
nt in he
ad
li
ne p
er
for
m
anc
e to
excl
ude t
he im
pa
c
t of fo
r
eign e
xch
ang
e, r
e
st
r
uc
t
ur
i
ng co
s
t
s an
d
acq
uis
it
ion
s
. T
his d
ef
ini
tio
n of or
g
ani
c gr
ow
th is t
he s
a
me as t
hat
us
ed fo
r un
der
lyi
ng gr
o
w
th in pr
e
v
io
us ac
cou
ntin
g pe
r
io
ds
.
Signif
ic
ant a
ccounting p
ol
icie
s
Basis of con
solidation
Th
e Gr
o
up’
s co
ns
ol
id
ated a
cco
unt
s in
cl
ude t
he f
in
anc
ial s
t
atem
ent
s
of Smi
th
s Gr
o
up pl
c (th
e ‘Co
mp
any
’
) an
d al
l enti
ti
es c
ontr
o
ll
ed b
y th
e
Co
mp
any (
i
t
s sub
sid
iar
ies
). A li
s
t of the s
ub
sid
iar
i
e
s of Smi
th
s Gr
o
up
plc i
s pr
o
v
ide
d on p
a
ge
s 180 to 18
6.
Th
e C
omp
an
y co
ntr
ol
s an enti
t
y w
h
en i
t (i
) ha
s p
ow
er o
ve
r th
e enti
t
y;
(ii
) i
s ex
po
se
d or h
as r
i
ght
s to v
a
r
iab
le r
et
ur
ns f
r
om i
t
s in
vo
lv
eme
nt
w
ith t
he e
ntit
y; an
d (i
ii) h
as t
he ab
il
it
y to af
fe
c
t th
os
e r
etu
r
ns t
hr
ou
gh
it
s p
ow
er o
v
er th
e enti
t
y
. T
he G
r
oup r
e
as
s
e
ss
e
s w
het
he
r or no
t it
cont
r
ol
s a s
ubs
idi
ar
y if f
a
c
t
s an
d cir
cu
ms
t
anc
es i
ndi
c
ate th
at the
r
e
ar
e cha
ng
es to o
ne o
r mo
re o
f the
s
e thr
e
e el
eme
nt
s of co
ntr
ol
.
Sub
si
diar
ies ar
e f
ul
ly c
ons
o
li
date
d f
ro
m th
e date on w
h
ich c
ont
ro
l is
obt
ain
ed b
y th
e Co
mp
an
y to the d
ate th
at co
ntr
ol c
ea
se
s
.
W
her
e t
he Gr
o
up lo
s
es c
ontr
o
l of a su
bsi
dia
r
y, the as
s
et
s an
d
li
abil
i
tie
s ar
e d
er
ec
og
nis
e
d alo
ng w
i
th an
y r
el
ate
d no
n-
co
ntr
o
ll
in
g
inter
e
s
t and ot
he
r com
po
nent
s of equi
t
y. A
n
y re
s
ulti
ng g
ain or l
os
s
is r
ec
og
nis
e
d in th
e inc
ome s
t
atem
ent
. A
n
y inter
e
s
t re
ta
ine
d in th
e
for
m
er s
ubs
idi
ar
y is m
ea
sur
e
d at f
air v
a
lue w
h
en co
ntr
ol i
s lo
s
t.
Th
e no
n-
c
ontr
o
ll
in
g inter
e
s
t
s in th
e Gr
ou
p ba
l
an
ce sh
eet r
ep
r
e
se
nt
the s
har
e of n
et as
s
et
s of s
ub
sid
iar
y un
der
t
ak
ing
s hel
d ou
t
si
de t
he
Gr
oup
. T
he m
ov
em
ent in t
he y
ea
r com
pr
i
se
s t
he pr
of
i
t at
tr
ibut
ab
le
to suc
h inter
e
s
t
s tog
eth
er w
i
th an
y di
v
id
en
ds p
aid
, mo
v
eme
nt
s in
re
sp
e
c
t of co
r
po
r
ate t
r
an
s
ac
t
ion
s an
d r
el
ate
d exch
an
ge di
f
f
er
enc
es
.
Inter
e
s
t
s in as
s
oc
iate
s ar
e a
cco
unted f
or u
sin
g the e
qu
it
y meth
od
.
Th
e
y ar
e ini
tia
ll
y re
co
gni
s
ed at c
os
t, w
h
ic
h inc
lud
e
s tr
a
ns
a
c
tio
n
cos
t
s
. S
ubs
eq
ue
nt to ini
tia
l re
co
gn
iti
on
, th
e Gr
oup f
i
nan
cia
l
st
atem
ent
s i
ncl
ud
e the G
r
oup’s shar
e of th
e pr
of
i
t or lo
s
s an
d othe
r
com
pr
eh
en
si
ve i
nco
me of e
qu
it
y-a
cco
unte
d inv
e
ste
e
s
, until t
he d
ate
on w
hi
ch si
gni
fi
c
ant inf
lu
en
ce ce
as
e
s
.
Al
l inte
rc
omp
an
y tr
ans
ac
t
ion
s
, ba
l
an
ce
s, a
nd g
ain
s and l
os
s
e
s
on tr
ans
ac
t
ion
s b
et
w
e
en Gr
o
up co
mp
ani
es a
r
e el
imin
ate
d
on consolidation.
Foreign
cur
ren
cies
The Company’s presentational cu
r
renc
y and functional currenc
y is
ste
r
l
ing
. T
he f
in
anc
ial p
os
it
ion o
f all s
ub
sid
iar
i
es a
nd a
s
so
ci
ate
s that
hav
e a f
un
c
tio
nal c
ur
r
en
c
y d
if
fere
nt fr
o
m s
ter
l
in
g ar
e tr
a
ns
l
ated i
nto
ste
r
l
ing at t
he r
ate of excha
ng
e at th
e date of t
hat b
al
a
nce s
he
et, a
nd
the i
nco
me an
d ex
pe
ns
e
s ar
e tr
ansl
a
ted at a
ve
r
a
ge e
xcha
nge r
ates
for t
he p
er
io
d
. Al
l r
es
ult
in
g for
ei
gn exc
han
ge r
ate mov
em
ent
s ar
e
re
co
gni
s
ed a
s a se
pa
r
ate c
omp
on
ent of e
qui
t
y
.
On consolidation, foreign ex
change rate movements arising from
the t
r
an
sl
a
tio
n of th
e net in
ve
s
tm
ent in f
or
ei
gn ent
iti
e
s, a
nd of
bor
ro
w
ing
s an
d oth
er cu
r
r
enc
y ins
tr
u
ment
s d
e
sig
nate
d as h
ed
ge
s
of suc
h in
ve
s
tm
ent
s
, ar
e t
aken to sh
ar
eh
ol
de
r
s’ equi
t
y
. W
he
n a
foreign operation is sold, the cu
mulati
ve amount
of such f
oreign
exch
ang
e r
ate m
o
vem
ent
s i
s r
eco
gn
is
ed i
n the i
nco
me s
t
atem
ent as
pa
r
t of the ga
in or l
os
s on s
a
le.
Foreign exchange
r
ate
movement
s arising on transac
tions are
re
co
gni
s
ed in t
he in
co
me s
ta
teme
nt. T
h
os
e ar
ising o
n tr
adin
g ar
e
ta
ken to op
er
a
tin
g pr
of
it
; tho
s
e ar
is
in
g on b
or
r
o
w
ing
s ar
e cl
a
s
si
fi
ed
as f
in
anc
e inc
ome o
r co
st
.
Rev
e
nu
e
Rev
enu
e is m
ea
sur
e
d at th
e f
air v
al
ue of t
he co
ns
id
er
at
io
n re
ce
i
ve
d,
net of t
r
a
de di
sc
ount
s (inc
lud
ing d
is
tr
i
bu
tor r
eb
ate
s) a
nd s
a
le
s
ta
xe
s. Re
v
enu
e is di
sc
oun
ted on
ly w
h
er
e the i
mp
ac
t of d
is
co
untin
g
is ma
ter
ia
l
.
W
hen t
he G
r
oup e
nter
s into c
om
ple
x con
tr
a
c
t
s w
it
h mul
tip
le,
separ
ately identifiable components
, the terms of the contract
ar
e re
v
ie
w
ed to d
eter
m
ine w
h
eth
er o
r not t
he el
eme
nt
s of th
e
cont
r
a
c
t sho
ul
d be a
cco
unted f
or s
ep
ar
ately. If a cont
r
a
c
t is b
ein
g
spl
i
t into mul
tip
le co
mp
on
ent
s
, th
e cont
r
a
c
t re
v
enu
e is al
lo
c
ate
d
to the d
if
fere
nt co
mpo
ne
nt
s at th
e st
ar
t of th
e co
ntr
a
c
t
. T
he b
as
is
of al
lo
ca
tio
n dep
en
ds o
n the s
ub
st
an
ce of t
he co
ntr
act
. T
h
e Gr
ou
p
consider
s rel
ative s
tand-alone sel
ling pr
ices, contr
ac
tual price
s and
rel
ative cos
t when alloc
ating revenue.
Th
e Gr
o
up ha
s id
enti
f
ie
d the f
ol
lo
w
ing d
if
fer
ent t
yp
es o
f re
v
enu
e:
(i) Sale of goods recognised at a point in time – generic products
manufactured by Smiths
Ge
ner
i
c pr
o
duc
t
s a
r
e def
in
ed a
s eit
he
r
:
–
Pro
du
c
t
s tha
t ar
e not s
pe
ci
fi
c to an
y pa
r
ticul
ar cus
tom
er;
–
Pro
du
c
t
s tha
t may i
ni
tia
lly b
e sp
ec
if
ic to a c
us
to
mer b
ut c
a
n be
re
co
nf
igu
re
d at mi
nim
al co
st
, i.
e. r
et
ain
ing a m
ar
gi
n, fo
r s
ale to a
n
alter
nati
v
e cus
to
mer; or
ACCO
UNTING POL
ICIE
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
11
0
–
Pro
du
c
t
s tha
t ar
e sp
ec
if
ic to a c
us
tom
er bu
t ar
e m
anu
f
ac
tu
re
d at
Smi
th
s r
is
k, i
.e
. we h
av
e no r
i
ght to p
ay
m
ent of c
os
t
s pl
us m
ar
gin
if th
e cu
sto
me
r re
fu
s
es to t
ake co
ntr
o
l of the g
oo
ds
.
For est
ablished pr
oduc
ts w
ith simple install
ation requir
ements,
re
v
enu
e is r
ec
og
nis
e
d w
hen c
ont
ro
l of th
e pr
o
duc
t i
s pa
s
s
ed to
the c
us
tom
er
. Th
e po
int in t
ime t
hat c
ontr
o
l pa
s
se
s i
s def
in
ed in
acc
or
da
nce w
i
th th
e ag
re
e
d ship
pi
ng ter
ms and i
s dete
r
min
ed o
n
a ca
s
e by c
a
se b
a
sis
. T
h
e tim
e of de
sp
atch o
r de
li
v
er
y of t
he go
o
ds
to the c
us
tom
er i
s nor
mall
y the p
oi
nt at w
hic
h in
vo
ici
ng o
ccu
r
s
.
Ho
we
v
er fo
r so
me g
ene
r
ic p
ro
du
c
t
s
, re
v
enu
e is r
e
co
gnis
e
d w
he
n
the overall per
formance obligation has
been completed,
which is
of
te
n af
te
r the c
us
to
mer h
as c
omp
lete
d it
s a
cce
pt
anc
e pr
oc
ed
ur
es
and h
as a
s
sum
ed c
ontr
o
l
.
Pr
o
duc
t
s t
hat a
re s
o
ld un
de
r mul
tip
le el
eme
nt ar
r
ange
men
t
s, i
.e.
cont
r
a
c
t
s inv
ol
v
ing a c
omb
in
atio
n of pr
o
du
c
t
s and s
er
v
i
ce
s, a
r
e
bun
dle
d into a s
ing
le p
er
for
m
anc
e obl
ig
ati
on un
le
s
s the c
us
to
mer
ca
n be
nef
i
t fr
om t
he g
oo
ds o
r se
r
v
ice
s ei
th
er on t
hei
r ow
n
, or
tog
ethe
r w
it
h oth
er r
e
so
ur
ce
s tha
t ar
e r
ea
dily a
v
ail
able to th
e
cus
to
mer a
nd ar
e d
is
tin
c
t w
it
hin t
he co
ntex
t of the co
ntr
a
c
t
.
For c
ontr
ac
t
s th
at pa
s
s co
ntr
ol of t
he p
ro
du
c
t to the c
us
to
mer o
nly
on completi
on of installation ser
vices, rev
enue is recognised upon
completion
of the installation.
A
n ob
li
gat
ion to r
ep
l
ac
e or r
ep
air f
a
ult
y pr
od
uc
t
s un
der t
he s
t
an
dar
d
w
ar
r
ant
y ter
ms is r
ec
ogn
is
ed a
s a pr
o
v
is
ion
. If t
he c
ontr
ac
t inc
lu
de
s
ter
m
s that e
it
her e
x
ten
d th
e w
ar
r
ant
y b
ey
on
d th
e s
ta
nda
r
d ter
m
or imp
ly t
hat m
ainten
an
ce is p
r
ov
i
de
d to keep t
he p
ro
du
c
t wo
r
k
ing
,
the
s
e ar
e s
er
v
ice w
arr
antie
s an
d r
ev
en
ue is d
efe
r
r
ed to co
v
er th
e
per
for
mance obligation i
n an amoun
t equiv
alent t
o the stand-alone
sellin
g price of that ser
v
ice.
(ii) Sale of goods recognised over time – customer-specific
products where the contractual terms include rights to payment
for work performed to date
Cus
tom
er
-s
pe
ci
f
ic pr
o
du
c
t
s ar
e def
in
ed a
s be
ing:
–
Pro
du
c
t
s tha
t ca
nn
ot be r
e
con
fi
gur
e
d ec
ono
mic
a
ll
y suc
h th
at it
re
mai
ns p
ro
fi
t
abl
e to se
ll to a
not
her c
us
tom
er;
–
Pro
du
c
t
s tha
t ca
nn
ot be s
ol
d to an
oth
er cu
s
tome
r du
e to
contrac
tual re
str
ic
tions; and
–
Pro
du
c
t
s tha
t all
ow S
mi
th
s to ch
ar
ge fo
r th
e wo
r
k pe
r
for
m
ed to
date in a
n amo
unt th
at r
ep
re
s
ent
s t
he co
s
t
s inc
ur
r
e
d to date p
lus a
mar
gi
n, s
ho
uld t
he c
us
tom
er r
ef
us
e to t
ake cont
r
ol of t
he go
o
ds
.
For c
ontr
ac
t
s th
at me
et th
e ter
m
s li
s
ted ab
o
ve
, re
v
enu
e is
re
co
gni
s
ed o
ve
r the p
er
iod th
at th
e Gr
ou
p is en
ga
ge
d in th
e
man
uf
ac
t
ur
e of th
e pr
o
duc
t
, c
alc
ul
ate
d us
ing t
he i
npu
t met
ho
d
ba
se
d on t
he am
ou
nt of co
st
s incur
r
e
d to date c
omp
ar
e
d to th
e
ov
er
all co
st
s o
f the c
ont
r
ac
t
. T
hi
s is c
on
sid
er
ed to b
e a f
ai
thf
ul
dep
ic
ti
on of t
he tr
ans
fe
r of the g
oo
ds to t
he c
us
tom
er a
s the c
os
t
s
inc
ur
r
ed
, tot
al ex
p
ec
te
d co
st
s a
nd tot
al o
r
der v
alue ar
e k
no
w
n.
Th
e ti
me of d
es
pa
tch or d
el
i
ve
r
y of the g
oo
ds to t
he c
us
tom
er is
nor
mall
y the p
oi
nt at w
hic
h inv
o
icin
g o
ccur
s.
A
n ob
li
gat
ion to p
r
ov
i
de a r
ef
un
d for f
au
lt
y pro
du
c
t
s und
er t
he
st
an
da
rd w
arr
ant
y te
r
ms i
s r
ec
ogn
is
ed a
s a pr
o
v
is
ion
. If t
he c
ontr
ac
t
inc
lud
e
s ter
m
s that e
it
her e
x
ten
d th
e w
ar
r
ant
y b
ey
on
d th
e s
ta
nda
r
d
ter
m or i
mpl
y tha
t mai
ntena
nce i
s pr
o
v
id
ed to ke
ep th
e pr
od
uc
t
wo
r
ki
ng
, the
s
e ar
e s
er
v
ic
e w
ar
r
antie
s an
d re
v
enu
e is d
efer
r
e
d to
co
ver t
he p
er
for
m
an
ce ob
li
gat
ion i
n an am
ount e
qu
i
v
ale
nt to th
e
stand
-alone selling pr
ice of that ser
v
ice.
(iii) Services recognised over time – services relating to the
installation, repair and ongoing maintenance of equipment
Ser
vice
s include install
ation, commissio
ning, testing, tr
aining,
sof
t
w
ar
e h
os
ti
ng an
d ma
inten
anc
e, pr
o
du
c
t re
pa
ir
s an
d co
ntr
act
s
und
er
ta
kin
g ex
tende
d w
ar
r
ant
y s
er
v
i
ce
s.
For c
omp
le
x ins
t
al
l
ati
on
s w
her
e t
he su
pp
ly of s
er
v
ice
s c
an
not b
e
se
pa
r
ate
d fr
o
m the s
up
ply of p
r
od
uc
t
, re
v
enu
e is r
e
co
gnis
e
d up
on
acceptance o
f the combined
per
for
mance obligation (see Sale of
goods (i)
above).
For s
er
v
i
ce
s that c
a
n be a
cco
unte
d for a
s a se
pa
r
ate p
er
for
mance
obligation, revenue is recognised over time, assess
ed on the
basis of
the a
c
tu
al s
er
v
ice p
r
ov
i
de
d as a p
ro
po
r
tion o
f the tot
al s
e
r
vi
ce
s
to be p
ro
v
id
ed
.
Dep
en
din
g on t
he na
tur
e of t
he co
ntr
act
, r
e
ven
ue i
s re
co
gn
is
ed
as follows:
–
Install
ation, commissioning and testing ser
vice
s (wh
en neither
lin
ked to t
he su
pp
ly of pr
o
du
c
t nor s
ubj
ec
t to a
cce
pt
anc
e) a
re
re
co
gni
s
ed r
ateabl
y as t
he s
er
v
ice
s a
re p
r
ov
i
de
d;
–
T
r
aining s
e
r
vi
ce
s ar
e r
ec
ogn
is
ed o
n co
mpl
eti
on of th
e
tr
aining cour
s
e;
–
Sof
t
w
ar
e ho
s
tin
g and m
ainte
nan
ce s
er
v
ic
es a
r
e re
co
gni
s
ed
r
ate
abl
y ov
er t
he l
ife o
f the c
ont
r
ac
t
;
–
Pro
du
c
t re
pa
ir s
er
v
ice
s
, w
h
er
e the p
r
od
uc
t is r
et
ur
n
ed to S
mi
ths
pr
emi
s
es f
or r
em
edi
al ac
t
io
n, ar
e r
e
co
gni
se
d w
he
n the p
r
od
uc
t is
ret
ur
n
ed to t
he c
us
tom
er an
d th
ey r
e
gai
n cont
ro
l of th
e as
s
et;
–
On-s
ite a
d ho
c pr
o
duc
t r
ep
ai
r se
r
vi
ce
s ar
e r
ec
og
nis
e
d r
ate
abl
y as
the ser
vices are per
formed;
–
Long
-ter
m pro
duc
t r
e
pa
ir an
d mai
ntena
nce c
ont
r
ac
t
s a
r
e
re
co
gni
s
ed r
ateabl
y ov
er t
he co
ntr
act te
r
m; an
d
–
Ex
tende
d s
er
v
ice w
a
r
r
a
ntie
s ar
e r
e
co
gni
se
d r
ate
ab
ly o
ve
r the
contrac
t term.
Inv
oi
cin
g for s
er
v
i
ce
s dep
en
ds o
n the n
atu
re o
f the s
er
v
i
ce pr
o
v
id
ed
w
ith s
om
e s
er
v
ice
s c
har
g
ed i
n ad
v
an
ce an
d oth
er
s i
n ar
r
e
ar
s
.
W
her
e c
ontr
ac
t
s ar
e acc
ou
nted fo
r un
der t
he r
e
ven
ue r
e
co
gni
se
d
ov
er ti
me b
as
is
, th
e pr
op
or
ti
on of co
s
t
s inc
ur
r
e
d is u
se
d to
determine the percentage of contrac
t completion.
Co
ntr
a
c
t
s fo
r the c
on
st
r
uc
t
io
n of sub
s
ta
ntia
l as
s
et
s
, w
hic
h no
r
ma
lly
l
as
t in e
xce
ss o
f one y
e
ar
, are a
cco
unted f
or un
de
r the r
e
ve
nu
e
re
co
gni
s
ed o
ve
r tim
e ba
si
s, u
sin
g an i
npu
t met
ho
d.
For f
i
xed
-p
r
ic
e cont
r
a
c
t
s, r
e
ve
nu
e is r
ec
og
nis
e
d ba
se
d up
on a
n
as
s
es
s
ment o
f the a
mo
unt of co
s
t inc
ur
r
e
d und
er t
he co
ntr
act
,
com
pa
re
d to th
e tot
al ex
pe
c
te
d cos
t
s t
hat w
il
l b
e inc
ur
r
ed u
nd
er
the c
ontr
ac
t. T
h
is c
al
cul
a
tio
n is ap
pl
ie
d cu
mul
at
i
ve
ly w
i
th an
y ov
er
/
und
er r
ec
og
nit
io
n bei
ng a
dju
ste
d in t
he cu
r
r
ent p
er
i
od
.
For cost
-plus contrac
ts
, revenue is recognised based upon cost
s
inc
ur
r
ed to d
ate pl
us an
y ag
re
e
d mar
g
in.
For both
fixed-pr
ice and cost
-plus contrac
ts
, invoicing is
nor
mally
ba
se
d on a s
ch
e
dule w
i
th m
ile
s
ton
e pa
y
me
nt
s.
Contr
ac
t cos
t
s
Th
e Gr
o
up ha
s t
aken th
e pr
ac
tic
al e
xp
e
die
nt of not c
a
pi
ta
li
sin
g
cont
r
a
c
t cos
t
s a
s the
y ar
e e
xp
ec
te
d to b
e ex
pen
s
ed w
i
thi
n one y
e
ar
fr
om t
he d
ate of si
gnin
g.
ACCO
UNTING POL
ICIE
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
111
Leases
Th
e Gr
o
up r
ec
ogn
is
e
s r
ig
ht of us
e as
s
et
s at t
he co
mm
enc
eme
nt
date of t
he le
as
e
. Rig
ht of us
e as
s
et
s a
re m
ea
su
re
d at co
s
t inc
lu
din
g
the a
mo
unt of le
as
e l
iab
il
it
ie
s r
ec
ogn
is
ed a
nd in
it
ial di
r
ec
t co
s
t
s
inc
ur
r
ed
, le
s
s an
y inc
enti
v
e
s gr
a
nted b
y th
e le
s
s
or
. Right of u
s
e
as
s
et
s ar
e de
pr
e
ciate
d o
ve
r the s
ho
r
ter of the l
ea
se te
r
m an
d the
us
ef
ul l
ife of t
he r
i
ght of u
se a
s
se
t
s, u
nle
s
s th
er
e is a t
r
a
ns
fer o
f
ow
n
er
s
hip o
r pur
ch
as
e op
tio
n w
hic
h is r
e
as
on
abl
y cer
ta
in to be
exer
ci
se
d at t
he en
d of th
e le
as
e ter
m
, in w
hi
ch c
a
se d
ep
re
ci
ati
on
is ch
ar
ge
d o
ve
r the u
se
fu
l li
fe of t
he un
de
r
ly
in
g as
s
et
. Ri
ght of u
se
as
s
et
s ar
e su
bje
c
t to imp
ai
r
me
nt.
Le
as
e
s of bu
ild
ing
s t
y
p
ic
al
ly h
av
e le
as
e ter
m
s b
et
w
e
en 1 an
d
6 ye
ar
s
, w
hi
le pl
a
nt an
d mac
hin
er
y ge
ne
r
al
ly h
av
e le
as
e ter
m
s
bet
we
en 1 an
d 3 ye
ar
s
. T
h
e Gr
ou
p al
s
o ha
s ce
r
tain l
ea
se
s of
mac
hin
er
y w
it
h le
as
e ter
m
s of 12 month
s or le
s
s an
d le
as
e
s of of
fic
e
equ
ipm
ent w
i
th lo
w v
a
lue (
t
y
p
ic
al
ly b
elo
w £
5
,0
0
0). T
he G
ro
up ap
pl
ie
s
the 'sh
or
t-ter
m le
as
e' and '
le
as
e of l
ow
-
v
alu
e as
s
et
s' re
co
gn
iti
on
exem
pti
ons f
or th
e
se l
ea
s
es a
nd r
ec
og
nis
e
s th
e le
as
e pa
y
me
nt
s
as
s
oc
iate
d w
ith t
he
s
e le
as
e
s as an e
xp
en
s
e on a s
tr
aight-l
ine b
as
is
ov
er th
e le
as
e ter
m.
T
ax
ation
Th
e ch
ar
ge f
or t
ax
ati
on i
s ba
s
ed o
n pr
of
it
s f
or th
e ye
ar a
nd
ta
kes into a
cco
unt t
a
xat
ion d
efer
red b
e
ca
us
e of tem
po
r
ar
y
dif
fer
enc
es b
et
we
en th
e tr
ea
tme
nt of cer
t
ain i
tem
s for t
a
xat
ion a
nd
accounting pur
po
se
s.
Cur
r
ent i
nco
me t
a
x as
s
et
s an
d li
abi
li
ti
es a
r
e me
asu
r
ed at
the a
mo
unt ex
pe
c
te
d to be r
e
cov
er
e
d f
ro
m or p
ai
d to ta
xa
tio
n
aut
ho
r
it
ie
s. Tax ben
ef
it
s ar
e n
ot r
ec
ogn
is
ed u
nle
s
s i
t is l
ikely t
hat
the t
a
x po
si
tio
ns a
re s
us
t
ain
abl
e. T
ax p
os
it
ion
s t
aken ar
e t
hen
re
v
ie
w
ed to a
s
se
s
s w
h
ethe
r a pr
o
v
isi
on s
hou
ld b
e ma
de b
as
e
d on
pr
ev
ailin
g cir
c
ums
t
an
ce
s
. T
ax pr
o
v
isi
on
s ar
e inc
lu
de
d in cu
r
r
ent t
ax
li
abil
i
tie
s
. T
he t
a
x r
ate
s an
d t
ax l
a
w
s us
e
d to com
pu
te the a
mo
unt
ar
e tho
s
e tha
t ar
e ena
c
ted o
r sub
s
ta
nti
v
ely e
na
c
ted
, at the r
e
po
r
ting
date in t
he co
untr
ies w
h
er
e th
e Gr
ou
p ope
r
ate
s an
d ge
ne
r
ate
s
taxable income.
Th
e Gr
o
up op
er
ates an
d is s
ubj
ec
t to t
a
xat
ion i
n man
y co
untr
i
es
.
T
ax le
gis
l
ati
on i
s dif
fer
ent in e
ac
h cou
ntr
y, is of
te
n com
ple
x an
d
is su
bje
c
t to inte
r
pr
et
ati
on b
y man
ag
em
ent an
d go
ve
r
nm
ent
aut
ho
r
it
ie
s. T
h
e
se m
at
ter
s of jud
gem
ent gi
v
e r
i
se to t
he n
ee
d to
cr
eate p
r
ov
i
sio
ns f
or un
cer
t
ain t
ax p
os
it
ion
s w
hi
ch ar
e r
ec
og
nis
e
d
w
hen i
t is c
on
sid
er
ed m
or
e l
ikel
y tha
n not t
hat th
er
e w
il
l be a
fu
tu
re o
ut
f
l
ow o
f fu
nds to a t
a
xi
ng au
th
or
i
t
y
. P
ro
v
is
io
ns ar
e m
ad
e
aga
ins
t i
ndi
v
i
dua
l ex
po
sur
e
s an
d ta
ke into acc
ou
nt the s
pe
ci
fi
c
cir
cu
ms
t
anc
es o
f ea
ch c
as
e, i
ncl
udi
ng t
he s
tr
en
gt
h of tec
hni
c
al
ar
gum
ent
s
, r
ec
ent c
a
se l
a
w de
ci
sio
ns o
r r
ul
in
gs o
n simi
l
ar is
s
ue
s
and r
el
ev
ant ex
ter
nal ad
v
i
ce.
Th
e am
ount
s are me
a
sur
e
d usi
ng on
e of th
e fo
ll
ow
in
g me
tho
ds
,
dep
en
din
g on w
hi
ch of t
he m
etho
ds t
he D
ir
ec
to
r
s ex
p
ec
t w
il
l b
et
ter
ref
l
ec
t th
e am
ount t
he G
ro
up w
il
l p
ay to t
he t
ax a
uth
or
it
y:
–
The si
ngl
e be
s
t e
s
tim
ate met
ho
d is u
se
d w
he
re t
he
re i
s a sin
gle
outc
om
e that i
s mo
r
e li
kely th
an n
ot to occ
ur
. Th
is w
il
l ha
pp
en
, for
exa
mp
le, w
h
er
e th
e ta
x ou
tco
me is b
ina
r
y or th
e r
an
ge o
f po
s
sib
le
outc
om
es i
s ve
r
y lim
ite
d;
–
Alter
n
ati
v
ely, a pr
ob
ab
il
it
y wei
ghte
d ex
pe
c
ted v
a
lue i
s us
e
d
w
her
e, o
n th
e ba
l
anc
e of pr
o
ba
bil
it
ie
s
, the
r
e w
ill b
e a p
ay
m
ent to
the t
a
x au
tho
r
it
y but t
he
re a
r
e a numb
er o
f po
ss
ibl
e ou
tcom
e
s.
In thi
s c
as
e, a p
ro
b
abil
i
t
y i
s as
s
ign
ed to e
ac
h of th
e ou
tcom
es
and t
he am
ou
nt pr
o
v
ide
d is t
he s
um of th
e
se r
i
sk-w
ei
ghted
amo
unt
s
. In a
ss
e
s
sin
g pr
o
v
is
ion
s ag
ain
s
t unc
er
tai
n ta
x p
osi
ti
ons
,
man
ag
eme
nt us
e
s in
-h
ous
e t
ax e
xp
er
t
s
, pr
ofe
s
si
on
al f
ir
m
s an
d
pr
ev
i
ou
s ex
pe
r
ien
ce of t
he t
ax
in
g au
tho
r
i
t
y to e
v
al
uate th
e r
is
k
.
Defe
r
r
ed t
a
x is p
ro
v
id
ed i
n f
ull u
sin
g th
e ba
l
anc
e she
et l
ia
bil
it
y
meth
o
d. A def
er
r
e
d ta
x a
ss
et i
s r
eco
gn
is
ed w
h
er
e it i
s pr
o
ba
ble t
hat
fu
tu
re t
a
xa
ble i
nco
me w
il
l b
e suf
fi
cie
nt to ut
ili
s
e the a
v
ail
able r
el
ief.
T
ax is c
har
g
ed o
r cr
ed
ite
d to th
e inc
ome s
t
atem
ent e
xcept w
h
en i
t
re
l
ate
s to ite
ms ch
ar
g
ed o
r cr
ed
ite
d dir
e
c
tly to e
qui
t
y
, in w
hi
ch c
as
e
the t
a
x is al
so de
al
t w
ith i
n eq
uit
y.
Defe
r
r
ed t
a
x is p
ro
v
id
ed o
n tem
por
ar
y dif
fer
enc
es a
r
is
ing o
n
inv
e
st
me
nt
s in su
bsi
dia
r
ie
s an
d as
s
oc
iate
s
, exce
pt w
he
r
e the t
imin
g
of the r
e
v
er
s
al o
f the te
mp
or
a
r
y dif
fer
enc
e
s is co
ntr
ol
le
d b
y the
Co
mp
any a
nd i
t is p
ro
b
abl
e tha
t the te
mp
or
a
r
y dif
fer
enc
e w
ill n
ot
re
v
er
s
e in th
e fo
re
s
ee
ab
le f
ut
ur
e.
Defe
r
r
ed t
a
x li
abi
li
ti
es a
nd a
s
set
s a
r
e not d
is
cou
nted
.
Employee benefit
s
Share-
base
d compensation
Th
e f
air v
a
lue o
f the s
har
e
s or s
ha
re o
pti
on
s gr
a
nted i
s re
co
gni
s
ed
as an e
xp
en
se o
v
er th
e ve
s
ti
ng p
er
i
od to r
ef
le
c
t th
e v
alu
e of th
e
emp
lo
ye
e s
er
v
ice
s r
ec
ei
v
ed
. T
he f
ai
r v
alu
e of opt
io
ns gr
anted
,
excl
udin
g th
e imp
ac
t o
f any n
on
-m
ar
ket v
e
st
in
g con
di
tio
ns
, is
ca
lcu
l
ate
d usi
ng e
s
ta
bl
is
he
d opti
on p
r
ic
ing m
od
el
s, pr
i
nci
pa
ll
y
bin
omi
al mo
de
l
s
. T
he p
r
ob
abi
li
t
y of meet
ing n
on
-m
ar
ket v
e
st
in
g
con
di
tio
ns
, w
hi
ch in
clu
de p
r
of
it
ab
ili
t
y tar
ge
t
s, i
s us
e
d to es
t
imate t
he
numb
er o
f sha
re o
pti
on
s w
hic
h ar
e l
ikely to v
e
st
.
For
cash-se
ttled
share-ba
sed payme
nt,
a li
abili
t
y is
recog
nised
ba
se
d on t
he f
ai
r v
alu
e of th
e pa
y
me
nt ea
r
ne
d by t
he b
al
a
nce s
he
et
date. F
or e
qui
t
y-s
et
t
le
d sha
re
-
ba
s
ed p
ay
m
ent
, th
e cor
r
e
sp
on
din
g
credit i
s recogni
sed directly
in reser
ves.
Pension obligations and post-retirement benefits
Pen
si
ons a
nd s
imil
a
r be
nef
i
t
s (
pr
i
nci
pa
lly h
ea
lth
c
ar
e) a
r
e acco
unte
d
for un
de
r I
A
S 1
9
. The r
et
ir
em
ent be
nef
i
t obl
i
gati
on in r
e
sp
e
c
t of th
e
def
in
ed b
ene
fi
t pl
a
ns i
s the l
i
abil
i
t
y (
th
e pr
e
se
nt v
alu
e of al
l ex
pe
c
te
d
fu
tu
re o
bl
ig
ati
ons
) le
s
s th
e f
air v
a
lue o
f the p
l
an a
s
set
s
.
Th
e in
com
e s
tate
me
nt ex
pen
s
e is al
lo
c
ate
d bet
we
en cu
r
r
ent s
er
v
ic
e
cos
t
s
, r
ef
le
c
tin
g the i
ncr
e
as
e in l
ia
bil
i
t
y d
ue to an
y be
nef
i
t acc
r
ue
d
by e
mpl
oy
ee
s in t
he c
ur
r
ent p
er
i
od
, an
y pa
s
t se
r
v
ice c
os
t
s
/cr
ed
it
s
and s
et
t
lem
ent l
os
s
e
s or ga
ins w
h
ich a
re r
e
co
gni
se
d im
me
diate
ly,
and the scheme administr
ation cost
s.
Ac
t
uar
ial gai
ns an
d lo
s
se
s ar
e r
e
co
gnis
e
d in th
e s
tate
me
nt
of com
pr
eh
en
si
v
e inc
ome i
n the y
e
ar in w
hi
ch t
he
y ar
i
se
.
Th
e
se c
omp
r
i
se t
he im
pa
c
t on th
e l
iab
il
iti
e
s of ch
ang
e
s in
dem
og
r
ap
hic a
nd f
in
anc
ial a
s
sum
pti
on
s com
pa
r
ed w
i
th th
e s
ta
r
t of
the y
ea
r
, act
ual e
xp
er
ience b
ein
g di
f
f
er
ent to a
ss
ump
tio
ns a
nd th
e
ret
ur
n o
n pl
a
n as
s
et
s be
ing a
bo
v
e or b
elo
w th
e am
ount in
cl
ud
ed in
the n
et pe
ns
ion i
nter
e
st c
os
t
.
Pa
y
me
nt
s to def
in
ed c
ont
r
ibu
ti
on s
ch
eme
s ar
e c
har
g
ed a
s an
inc
ome s
t
atem
ent e
xp
en
se a
s th
ey f
al
l du
e.
Intangibl
e as
s
et
s
Goodw
ill
Go
od
w
i
ll r
ep
r
es
ent
s t
he e
xce
ss o
f the c
os
t of a
n acq
uis
iti
on o
ve
r th
e
fa
ir v
al
ue of t
he Gr
o
up’
s sh
ar
e of th
e id
enti
f
iab
le ne
t as
s
et
s of th
e
acquired subsidiar
y at t
he date
of acquisition.
Th
e go
o
d
w
ill a
r
is
ing f
r
om a
cqu
isi
ti
on
s of sub
si
diar
ies af
ter 1 Au
gus
t
1
9
9
8 is i
ncl
ud
ed in i
nta
ngi
bl
e as
s
et
s
, tes
te
d ann
ual
ly f
or im
pai
r
me
nt
and c
a
r
r
ie
d at co
s
t le
s
s acc
umu
l
ated i
mp
air
m
ent lo
s
s
es
. G
ain
s an
d
los
s
e
s on th
e di
sp
os
al of a
n enti
t
y inclu
de t
he c
ar
r
y
i
ng am
ou
nt
of go
od
w
i
ll r
el
at
in
g to the e
nti
t
y s
ol
d. T
h
e go
od
w
i
ll ar
isin
g fr
o
m
acq
uis
it
ion
s of su
bsi
dia
r
ie
s b
efor
e 1 A
ug
us
t 199
8 w
as s
et a
gai
ns
t
re
s
er
v
es i
n the y
e
ar of ac
qui
si
tio
n.
ACCO
UNTING POL
ICIE
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
112
Go
od
w
i
ll i
s tes
te
d for i
mp
air
m
ent at l
ea
st a
nnu
al
ly. Sho
ul
d the te
s
t
ind
ic
ate th
at th
e net r
e
al
is
ab
le v
al
ue of t
he C
GU i
s le
s
s tha
n cur
rent
ca
r
r
y
ing v
alue, a
n imp
air
ment lo
s
s w
ill b
e r
ec
ogn
is
ed i
mme
di
ately
in th
e inc
ome s
t
atem
ent
. S
ubs
eq
ue
nt re
v
er
s
a
l
s of im
pa
ir
m
ent
los
s
e
s for g
oo
d
w
il
l ar
e no
t re
co
gni
s
ed
.
Research and development
E
x
pe
ndi
tu
re o
n r
es
e
ar
ch an
d de
ve
lo
pme
nt is c
har
g
ed to t
he in
co
me
st
atem
ent i
n the y
e
ar in w
hi
ch i
t is in
cur
red w
i
th t
he exc
epti
on of:
–
Amo
unt
s r
e
co
ve
r
ab
le f
r
om th
ir
d p
ar
tie
s; and
–
Ex
pe
ndi
tu
r
e inc
ur
r
ed i
n r
es
pe
c
t of th
e de
ve
lo
pme
nt of ma
jo
r
ne
w pr
o
duc
t
s w
h
er
e th
e ou
tcom
e of th
os
e pr
o
jec
t
s is as
se
s
s
ed
as b
ein
g re
a
so
nab
ly ce
r
tain a
s r
eg
ar
ds v
i
abi
li
t
y and tec
hni
c
al
fea
sib
il
it
y. Such e
xp
en
dit
ur
e is c
a
pit
al
i
se
d an
d amo
r
tis
ed o
v
er
the e
s
tim
ate
d pe
r
io
d of s
ale f
or e
ac
h pr
od
uc
t
, com
me
nci
ng in t
he
ye
ar th
at th
e pr
o
duc
t i
s re
a
d
y for s
a
le. A
mor
tis
ati
on i
s ch
ar
ge
d
st
r
ai
ght l
ine o
r b
as
ed o
n th
e uni
t
s pr
od
uce
d
, dep
en
din
g on th
e
nat
ur
e of th
e pr
od
uc
t an
d th
e av
a
il
ab
ili
t
y of rel
ia
bl
e es
ti
mate
s
of production volumes.
Th
e co
s
t of de
ve
lo
pme
nt pr
oj
ec
t
s w
h
ich a
r
e ex
pe
c
ted to t
ake
a sub
st
ant
ial p
er
iod of ti
me to co
mp
lete in
clu
de
s at
t
r
ib
ut
ab
le
bor
ro
w
ing c
os
t
s
.
Intangible as
set
s acquired in busine
ss combinations
Th
e id
enti
f
iab
le n
et as
s
et
s ac
qui
r
ed a
s a re
s
ult of a b
us
ine
s
s
com
bin
ati
on ma
y in
clu
de int
an
gib
le a
s
set
s other t
han g
oo
d
w
il
l
.
A
ny s
uch i
nta
ngi
ble a
s
s
et
s ar
e am
or
tis
e
d st
r
ai
ght l
in
e ov
er th
eir
ex
pe
c
ted u
sef
u
l li
v
e
s as fo
ll
ow
s:
Patents, licence
s
and tr
ademar
ks
up to 2
0 y
ea
r
s
T
e
chnology
up to 13 yea
r
s
Customer rel
ationships
up to 1
1 year
s
Th
e as
s
et
s’ us
ef
ul l
i
ve
s ar
e r
e
v
ie
we
d, a
nd a
dju
ste
d if a
pp
ro
pr
i
ate,
at ea
ch b
al
an
ce sh
ee
t date
.
Sof
t
wa
re, p
aten
t
s and i
ntell
ec
tu
al pr
op
er
t
y
Th
e e
s
tim
ated u
sef
ul l
i
v
e
s ar
e as fo
ll
o
w
s:
Sof
t
w
are
up to 7 year
s
Pa
tent
s an
d intel
le
c
tu
al
proper
t
y
sho
r
ter of the e
co
no
mic l
i
fe
and t
he p
er
i
od th
e r
i
ght is
legally enforceab
le
Th
e as
s
et
s’ us
ef
ul l
i
ve
s ar
e r
e
v
ie
we
d, a
nd a
dju
ste
d if a
pp
ro
pr
i
ate,
at ea
ch b
al
an
ce sh
ee
t date
.
Pr
oper
t
y, plant and
equipment
Pr
o
per
t
y
, pl
ant a
nd e
qui
pm
ent ar
e s
t
ated at h
is
tor
i
c
al co
s
t le
s
s
acc
umul
ated dep
r
ec
iati
on a
nd an
y r
ec
ogn
is
ed i
mp
air
m
ent l
os
s
es
.
L
an
d is n
ot dep
r
ec
iate
d. D
ep
re
ci
ati
on is p
r
ov
i
de
d on oth
er a
s
se
t
s
es
ti
mate
d to w
r
i
te of
f t
he de
pr
e
cia
ble a
mo
unt of r
el
ev
a
nt as
s
et
s
by e
qua
l ann
ual i
ns
t
al
men
t
s ov
er th
eir e
s
ti
mate
d us
ef
ul l
i
ve
s
.
In ge
ner
al, t
he r
ates us
e
d ar
e:
Freehold and long
leasehold bu
ildings
2% pe
r ann
um
Shor
t leasehol
d proper
t
y
ove
r th
e per
iod of t
he le
as
e
Pl
a
nt, m
ac
hin
er
y, etc.
10% to 2
0
% p
er ann
um
F
ix
t
ur
e
s
, fi
t
ti
ng
s, to
ol
s and
other equipment
10
% to 3
3
% p
er an
num
Th
e co
s
t of any a
s
s
et
s w
hic
h ar
e ex
pe
c
te
d to ta
ke a sub
st
ant
ial
per
iod of t
ime to c
omp
lete in
cl
ude
s at
tr
ibu
ta
bl
e bor
ro
w
ing c
os
t
s
.
Th
e as
s
et
s’ re
s
idu
al v
al
ue
s an
d us
ef
ul l
i
ve
s ar
e r
e
v
ie
we
d, a
nd
adj
us
ted i
f ap
pr
op
r
iate
, at ea
ch b
al
an
ce sh
ee
t date
. A
n as
s
et’s
ca
r
r
y
ing a
mo
unt is w
r
it
ten do
w
n im
me
dia
tely to i
t
s r
eco
v
er
a
bl
e
amo
unt i
f the a
s
se
t’s car
r
y
i
ng am
oun
t is gr
e
ater th
an i
t
s es
t
imate
d
reco
ver
able amount.
Inventories
Inv
ento
r
ie
s ar
e s
ta
ted at t
he lo
w
er of c
os
t an
d net r
e
al
is
ab
le v
a
lue
.
Co
st i
s dete
r
mi
ne
d usi
ng th
e f
ir
s
t-in
, fi
r
s
t-ou
t (
F
IFO
) meth
o
d.
Th
e co
s
t of f
inis
he
d go
od
s an
d wo
r
k in p
ro
gr
e
s
s co
mpr
i
s
es r
aw
mater
ial
s
, dir
e
c
t l
ab
our
, oth
er dir
e
c
t co
st
s and r
el
ate
d pr
o
duc
t
ion
ov
er
h
ea
ds (
b
as
ed o
n no
r
ma
l op
er
at
in
g ca
pa
ci
t
y
). T
h
e cos
t of i
tem
s
of inv
ento
r
y w
hic
h ta
ke a sub
st
ant
ial p
er
i
od o
f tim
e to com
pl
ete
includes attribut
able borr
owing cost
s.
Th
e ne
t re
al
is
a
ble v
alue of in
ve
ntor
i
e
s is th
e es
t
imate
d s
el
li
ng pr
ice
in th
e or
din
ar
y co
ur
s
e of b
usi
ne
s
s
, le
s
s app
li
c
abl
e v
ar
i
abl
e se
ll
in
g
ex
pen
s
es
. P
r
ov
i
si
ons a
r
e ma
de fo
r any s
lo
w
-m
ov
in
g, o
bs
ol
ete or
defecti
ve inventorie
s.
T
r
ade
and other r
ecei
v
ables
T
ra
de r
e
cei
v
a
bl
es a
nd co
ntr
ac
t as
s
et
s ar
e ini
ti
al
ly r
ec
ogn
is
ed a
t
fa
ir v
al
ue an
d sub
s
eq
uent
ly me
as
ur
e
d at amo
r
tis
ed c
os
t
, le
s
s any
app
r
opr
iate pr
ov
i
sio
n fo
r ex
pe
c
ted c
re
di
t lo
s
se
s
.
A pr
ov
i
si
on fo
r ex
pe
c
ted c
r
edi
t lo
s
se
s i
s es
t
ab
li
sh
ed w
h
en th
er
e is
obj
ec
t
i
ve e
v
id
enc
e tha
t it w
il
l not b
e p
os
si
ble to c
ol
le
c
t al
l amo
unt
s
due a
cco
r
din
g to the o
r
ig
ina
l pa
y
me
nt ter
m
s. E
xpe
c
te
d cr
ed
it l
os
s
es
ar
e dete
r
min
ed u
sin
g his
to
r
ic
al w
r
ite-
of
fs as a b
a
sis
, w
i
th a d
efa
ult
r
isk m
ult
ipl
ie
r ap
pl
ie
d to ref
l
ec
t c
ount
r
y r
isk p
r
emiu
m. T
h
e Gr
ou
p
app
li
e
s the IF
R
S 9 s
imp
l
if
ie
d li
fet
ime e
xp
ec
ted cr
ed
it lo
s
s ap
pr
o
ach
for t
r
ad
e r
ec
ei
v
ab
le
s an
d cont
r
a
c
t as
s
et
s w
hi
ch do n
ot co
nta
in a
signific
ant financing component.
Pr
ov
isions
Pro
visions are recognised w
hen the Group has
a present obligation
(l
ega
l or c
ons
t
r
uc
t
i
ve
) as a r
e
su
lt of a p
as
t e
ve
nt, i
t is p
ro
b
abl
e
that a
n ou
t
f
lo
w of r
es
o
ur
ce
s emb
od
y
i
ng e
co
nom
ic b
ene
fi
t
s w
il
l
be r
e
quir
e
d to se
t
tl
e the o
bl
ig
atio
n, a
nd a r
el
ia
bl
e es
ti
mate c
an b
e
mad
e of th
e am
ount o
f the o
bl
ig
atio
n. W
her
e the G
r
oup e
xp
e
c
t
s
so
me or a
ll of a p
r
ov
i
si
on to b
e re
imb
ur
s
ed
, fo
r ex
amp
le un
der a
n
ins
ur
a
nce c
ont
r
ac
t
, th
e r
eimb
ur
s
em
ent i
s r
eco
gn
is
ed a
s a se
p
ar
ate
as
s
et bu
t onl
y w
he
n the r
ei
mbu
r
s
eme
nt is v
ir
tu
al
ly ce
r
tain
.
Pro
visio
ns for war
r
anties and produc
t liabilit
y
, disposal indemnities
,
res
truc
tur
ing costs
, proper
t
y d
ilapidations and legal claims
ar
e re
co
gn
is
ed w
h
en: th
e Co
mp
any h
as a l
eg
al or c
on
s
tr
u
c
ti
ve
obl
ig
ati
on a
s a re
s
ult of a p
a
st e
v
ent; i
t is pr
o
ba
bl
e that a
n ou
t
f
lo
w of
re
s
ou
rc
es w
i
ll b
e re
qu
ir
ed to s
et
t
le th
e ob
li
gat
ion; a
nd th
e am
ount
has b
e
en r
el
iab
ly e
s
tim
ated
. P
r
ov
i
sio
ns a
re n
ot r
ec
og
nis
e
d for f
u
tur
e
oper
ating loss
es.
Pr
o
v
isi
on
s ar
e di
sc
ounte
d w
he
r
e the t
ime v
a
lue o
f mo
ne
y
is ma
ter
ia
l
.
W
her
e t
her
e i
s a num
ber o
f simi
l
ar ob
l
iga
tio
ns
, fo
r ex
amp
le w
h
er
e
a w
ar
r
ant
y ha
s b
een g
i
ve
n, t
he l
ikel
ih
oo
d th
at an ou
t
f
lo
w w
il
l be
re
qui
r
ed in s
et
t
le
ment i
s dete
r
min
ed b
y co
ns
id
er
in
g th
e cl
a
ss
of obligations
as a whole. A provision is recognised even if the
like
li
ho
od of a
n ou
t
f
lo
w w
it
h re
s
pe
c
t to any o
ne i
tem in
cl
ude
d in t
he
same clas
s of obligations
may be small.
ACCO
UNTING POL
ICIE
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
11
3
Businesse
s held for s
ale
Bus
ine
s
s
es c
l
as
s
if
ie
d as h
el
d for s
a
le ar
e m
ea
sur
e
d at th
e lo
we
r of
ca
r
r
y
ing a
mo
unt an
d f
air v
a
lue l
es
s c
os
t
s to s
el
l
. Imp
air
ment lo
s
se
s
on ini
ti
al cl
a
s
si
fi
c
ati
on as h
el
d for s
a
le an
d ga
ins o
r lo
ss
e
s on
sub
se
qu
ent r
em
ea
sur
e
ment
s a
r
e inc
lud
ed i
n the i
nco
me s
t
atem
ent
.
No de
pr
e
ciat
ion i
s ch
ar
ge
d on a
s
se
t
s and b
us
ine
s
s
es c
l
a
ss
if
ie
d as
hel
d for s
a
le
.
Bus
ine
s
s
es a
r
e cl
a
ss
if
ie
d as h
el
d for s
a
le i
f the
ir c
ar
r
y
in
g am
ount
w
ill b
e s
et
tl
ed p
r
in
cip
al
ly th
r
oug
h a s
ale r
ather t
ha
n thr
ou
gh
cont
inui
ng u
se a
nd th
e fo
ll
ow
i
ng cr
iter
ia a
re m
et:
–
The b
usi
ne
s
s mus
t b
e a s
ep
ar
ate m
aj
or l
ine o
f bus
ine
s
s
,
av
ai
l
abl
e for i
mme
di
ate s
ale i
n it
s p
re
s
ent c
on
dit
io
n;
–
Manag
em
ent is c
omm
it
te
d to th
e pl
a
n to se
ll t
he bu
sin
e
s
s and a
n
ac
ti
v
e pr
o
gr
a
mm
e to loc
a
te a bu
y
er an
d com
pl
ete the p
l
an m
us
t
have bee
n init
iat
ed;
–
The di
sp
os
al g
r
oup m
us
t be a
c
ti
v
ely m
ar
kete
d for s
a
le at a p
r
ic
e
that i
s r
ea
so
na
ble i
n re
l
ati
on to i
t
s cur
rent f
ai
r v
alu
e;
–
Shar
eh
ol
der a
nd r
e
gul
ato
r
y app
r
ov
a
l is hi
ghl
y pr
ob
ab
le an
d th
e
pl
an i
s unl
ikel
y to be s
ign
if
ic
ant
ly c
han
ge
d or w
i
th
dr
a
w
n; and
–
Sal
e is ex
p
ec
te
d to be c
omp
lete
d w
it
hin 12 month
s of th
e b
al
an
ce
she
et da
te.
Th
e as
s
et
s a
nd l
iab
il
it
ie
s of bu
sin
e
ss
e
s he
ld fo
r s
al
e ar
e pr
e
se
nted
as s
ep
ar
ate line
s o
n the b
al
ance sh
eet
.
Dis
continued o
per
ations
A discontin
ued oper
ation is
either
:
–
A compo
ne
nt of th
e Gr
ou
p’
s bus
ine
s
s th
at r
ep
re
s
ent
s a s
ep
ar
ate
maj
or l
ine o
f bu
sin
es
s o
r ge
ogr
aphi
c
al ar
e
a of op
er
ation
s tha
t ha
s
be
en di
sp
os
ed o
f, has b
ee
n ab
an
don
ed o
r me
et
s th
e cr
i
ter
i
a to be
cl
a
ss
if
ie
d as h
el
d for s
a
le; or
–
A busin
es
s a
cqu
ir
ed s
ol
ely f
or th
e pu
r
po
se o
f se
ll
in
g it
.
Dis
co
ntin
ue
d op
er
ation
s ar
e pr
e
s
ente
d on th
e inc
om
e st
atem
ent
as a s
ep
ar
ate line a
nd a
re s
ho
w
n ne
t of ta
x
.
In acc
or
da
nce w
i
th I
A
S 21, gains an
d lo
s
se
s o
n intr
a-
gr
oup
mon
et
ar
y as
s
et
s an
d l
iab
il
iti
e
s ar
e not e
li
min
ated
. T
her
ef
or
e fo
re
ign
exch
ang
e r
ate m
o
vem
ent
s o
n inter
co
mp
an
y lo
an
s w
ith d
is
co
ntinu
ed
ope
r
at
io
ns ar
e p
re
s
ente
d on t
he in
com
e s
ta
teme
nt as n
on
-h
ea
dl
ine
fi
nan
ce co
s
t item
s
.
Cash and cash equivalents
Ca
sh an
d c
as
h eq
ui
v
al
ent
s in
clu
de c
a
sh at b
ank a
nd i
n han
d an
d
high
ly l
iq
uid inte
r
es
t-b
ea
r
ing s
e
cur
itie
s w
i
th mat
ur
i
ti
es of t
hr
e
e
mont
hs o
r le
s
s.
In th
e ca
sh
-f
lo
w s
tate
me
nt, c
a
sh an
d c
as
h equ
i
v
ale
nt
s ar
e sh
o
w
n
net of b
an
k ov
er
dr
af
t
s
, w
hic
h ar
e in
clu
de
d as c
ur
r
ent b
or
ro
w
ing
s
in li
ab
ili
ti
es o
n th
e ba
l
anc
e she
et
.
Financial
as
set
s
Th
e cl
a
s
si
fi
c
ati
on of f
in
anc
ial a
s
se
t
s dep
en
ds o
n the p
ur
p
os
e fo
r
w
hic
h the a
s
se
t
s we
re a
cq
uir
ed
. Ma
na
gem
ent d
eter
mi
ne
s th
e
cl
a
ss
if
ic
at
io
n of an a
ss
et at i
nit
ial r
e
co
gni
ti
on an
d r
e-
e
v
alu
ate
s
the d
e
sign
ati
on at e
ac
h re
po
r
ting d
ate. F
i
nan
cia
l as
s
et
s ar
e
cl
a
ss
if
ie
d as: m
ea
su
re
d at am
or
ti
se
d co
st
, f
air v
alue th
r
oug
h oth
er
com
pr
eh
en
si
ve i
nco
me o
r f
air v
al
ue th
r
ou
gh pr
of
i
t and l
os
s
.
Financial as
set
s pr
imar
ily include tra
de recei
v
ables
, cash and
ca
sh e
qui
v
a
le
nt
s (co
mpr
ising c
a
sh at b
an
k
, mon
e
y mar
ket f
un
ds
,
and shor
t-term deposit
s), shor
t-t
er
m inves
tments
, deri
v
ative
s
(fo
re
ign e
xcha
ng
e cont
r
a
c
t
s an
d inter
e
s
t r
ate d
er
i
v
at
i
ve
s
) and
unl
is
te
d inv
e
st
me
nt
s.
–
T
r
ade r
ec
ei
v
ab
le
s ar
e cl
a
s
si
fi
ed e
it
her a
s ‘h
el
d to col
le
c
t’ a
nd
me
asu
r
ed at a
mor
ti
se
d co
s
t or as ‘
he
ld to c
ol
lec
t a
nd s
el
l
’ a
nd
measure
d at fair value through other comprehensi
ve income
(F
V
O
CI
). Th
e Gr
o
up ma
y se
ll t
r
a
de r
ec
ei
v
ab
le
s du
e fr
o
m cer
ta
in
cus
to
mer
s befor
e t
he du
e date
. A
ny t
r
a
de r
ec
ei
v
ab
le
s f
r
om su
ch
cus
to
mer
s that ar
e n
ot so
ld a
t the r
ep
or
tin
g date a
r
e cl
a
s
sif
ie
d a
s
‘he
ld to c
ol
le
c
t and s
el
l
’
;
–
Cash a
nd c
a
sh eq
ui
v
al
ent
s (
con
si
st
ing o
f ba
l
anc
es w
i
th b
an
k
s and
othe
r f
ina
nci
al in
s
tit
ut
ion
s
, mo
ne
y-
ma
r
ket f
und
s an
d sho
r
t-term
dep
os
it
s
) an
d sh
or
t-term i
nv
e
st
men
t
s ar
e sub
je
c
t to lo
w ma
r
ket
r
isk
. C
a
sh b
al
an
ce
s an
d sho
r
t-term i
nv
e
st
ment
s are m
ea
sur
e
d at
amo
r
tis
ed c
os
t
. Mon
ey m
ar
ket f
un
ds a
nd sh
or
t-ter
m de
po
si
t
s ar
e
me
asu
r
ed at f
ai
r v
alu
e thr
o
ugh p
r
of
it an
d lo
s
s (F
V
PL
);
–
Der
i
v
ati
v
e
s ar
e me
as
ur
ed a
t F
V
P
L;
–
Lis
te
d and u
nl
is
ted i
nv
es
t
ment
s a
r
e me
asu
r
ed at F
V
O
CI; and
–
Deferred contingent consider
ation are measured at F
VP
L
.
F
ina
nci
al as
s
et
s a
re d
er
e
cog
nis
e
d w
hen t
he r
i
ght to r
e
cei
v
e c
ash
-
fl
ow
s f
r
om t
he a
ss
et
s h
as e
xp
ir
ed
, or h
as b
ee
n tr
a
ns
fe
r
r
ed
, and t
he
Gr
oup h
as t
r
a
ns
fer
red s
ub
st
ant
ial
ly al
l of t
he r
i
sk
s an
d re
w
a
rd
s of
ow
n
er
s
hip. W
hen s
ec
ur
i
tie
s cl
ass
if
ie
d as a
v
ail
able fo
r s
ale a
r
e so
ld
or imp
ai
r
ed
, the a
ccu
mul
a
ted f
air v
alue ad
jus
t
ment
s p
r
ev
i
ou
sly
ta
ken to r
es
er
v
e
s ar
e inc
lud
ed i
n th
e inc
ome s
t
atem
ent
.
F
ina
nci
al as
s
et
s a
re c
l
as
s
if
ie
d as c
ur
r
ent i
f th
ey a
re e
xp
e
c
ted to b
e
re
al
is
e
d w
ith
in 12 month
s of th
e ba
l
anc
e sh
eet d
ate.
Financial
liabili
ties
Bo
r
r
ow
i
ngs a
r
e ini
tia
lly r
e
co
gni
se
d at th
e f
air v
a
lue o
f the p
r
oc
ee
ds
,
net of r
el
ated tr
a
ns
a
c
tio
n co
st
s
. T
h
es
e tr
ans
a
c
tio
n cos
t
s
, an
d an
y
discount or
premium on issue, are su
bsequently amor
tised under
the ef
fec
t
i
ve inte
r
es
t r
ate meth
od th
r
ou
gh th
e inc
ome s
t
atem
ent a
s
inter
e
s
t ov
er th
e l
ife o
f the l
oa
n and a
dd
ed to t
he l
ia
bil
it
y dis
cl
os
ed
in th
e ba
l
anc
e she
et
. Rel
ate
d ac
cr
u
ed in
ter
es
t i
s inc
lu
de
d in th
e
borr
ow
ings figure.
Bo
r
r
ow
i
ngs a
r
e cl
a
ss
if
ie
d as c
ur
r
e
nt li
abi
li
ti
es u
nle
s
s th
e Gr
ou
p ha
s
an unc
on
dit
io
nal r
ight to defe
r se
t
tl
eme
nt of th
e li
abi
li
t
y for at le
as
t
one y
e
ar af
ter the b
al
an
ce sh
e
et date
.
Deri
v
ative financi
al instr
ument
s and hedging ac
tiv
ities
Th
e Gr
o
up us
e
s de
r
i
v
ati
v
e f
ina
nci
al in
s
tr
u
ment
s to h
ed
ge i
t
s
ex
po
sur
e
s to for
e
ign e
xcha
ng
e and i
nter
e
st r
ates ar
ising f
r
om i
t
s
oper
ating and financing acti
vi
ties.
Der
iv
ati
ve financial ins
tr
uments ar
e initially recogni
sed at fair value
on th
e date a d
er
i
v
at
i
ve c
ontr
ac
t is en
ter
ed in
to and a
re s
ub
se
qu
entl
y
re
-
me
asu
r
ed at t
hei
r fa
ir v
al
ue. T
h
e met
ho
d of r
ec
og
nis
ing a
ny
re
s
ulti
ng g
ain or l
os
s d
ep
end
s on w
h
eth
er th
e der
iv
at
i
ve f
in
anc
ial
ins
tr
ument i
s de
si
gnate
d as a h
ed
gin
g in
s
tr
um
ent a
nd, i
f s
o, th
e
nat
ur
e of th
e item b
ein
g he
dg
ed
.
W
her
e d
er
i
v
at
i
ve f
in
an
cia
l ins
tr
ument
s a
re d
e
sig
nate
d into he
d
gin
g
relationships, the Group f
or
mally documen
ts the following:
–
the r
isk m
an
ag
eme
nt obj
ec
t
i
ve a
nd s
tr
ateg
y fo
r enter
i
ng
the hedge;
–
the natu
r
e of th
e r
isk
s b
ein
g he
dg
ed a
nd t
he e
con
omi
c
re
l
ati
on
ship b
et
wee
n th
e he
dg
ed i
tem an
d th
e he
dgi
ng
instr
ument; and
–
whet
her t
he c
han
ge in c
a
sh
-f
lo
w
s of th
e he
dg
ed i
tem an
d he
dg
ing
ins
tr
ument a
re e
xp
ec
ted to of
f
s
et ea
ch ot
her
.
Chan
ge
s in t
he f
ai
r v
alu
e of an
y der
iv
at
i
ve f
in
anc
ial i
ns
tr
ument
s th
at
do no
t qua
li
f
y for he
dg
e acc
ou
ntin
g ar
e r
ec
ogn
is
ed i
mme
di
ately i
n
the income statement.
ACCO
UNTING POL
ICIE
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
11
4
Fair
valu
e hedge
Th
e Gr
o
up us
e
s de
r
i
v
ati
v
e f
ina
nci
al in
s
tr
u
ment
s to c
on
ve
r
t par
t of
it
s f
ixe
d r
a
te deb
t to fl
oa
tin
g r
ate in o
r
de
r to he
dge t
he r
i
sk
s ar
ising
fr
om i
t
s ex
ter
nal b
or
ro
w
ing
s
.
Th
e Gr
o
up de
si
gn
ates t
he
s
e as f
ai
r v
alu
e he
dg
es o
f inter
e
s
t r
ate
r
isk
. C
han
ge
s in t
he he
d
gin
g ins
tr
ument a
re r
e
cor
d
ed i
n the
inc
ome s
t
atem
ent
, tog
eth
er w
i
th an
y cha
ng
es i
n the f
a
ir v
al
ue
s of
the h
ed
ge
d as
s
et
s or l
i
abil
i
tie
s th
at ar
e at
tri
bu
ta
ble to t
he h
ed
ge
d
r
isk to t
he e
x
tent t
hat t
he he
d
ge is ef
fec
t
i
ve
. Ga
ins o
r lo
s
se
s
re
l
atin
g to an
y ine
f
fe
c
ti
v
en
es
s a
re i
mme
di
ately r
e
co
gni
se
d in t
he
income statement.
Cash
-flow hedge
Ca
sh
-f
lo
w he
dg
ing i
s us
ed b
y th
e Gr
o
up to he
dg
e cer
t
ain ex
p
osu
r
es
to v
ar
ia
bil
i
t
y i
n fu
tu
re c
a
sh
-f
lo
w
s.
Th
e ef
fec
ti
v
e po
r
tion
s of ch
an
ge
s in th
e f
air v
a
lue
s of d
er
i
v
at
i
ve
s th
at
ar
e de
si
gnate
d an
d qua
li
f
y as c
as
h-f
l
ow h
ed
ge
s ar
e r
ec
og
nis
e
d in
equ
it
y. The g
ain or l
os
s r
el
a
tin
g to any i
nef
fec
ti
v
e po
r
tion i
s r
ec
ogn
is
ed
imm
edi
ately i
n the i
nco
me s
t
atem
ent
. A
m
ount
s a
ccu
mul
ate
d in t
he
he
dge r
e
s
er
v
e ar
e re
c
y
cl
ed i
n the i
nco
me s
t
atem
ent in t
he p
er
i
od
s
w
hen t
he h
ed
ge
d item
s w
il
l af
f
ec
t p
r
of
it or l
os
s (
for e
xa
mpl
e, w
he
n th
e
for
e
c
as
t s
ale t
hat i
s he
dg
ed t
ake
s pl
a
ce
).
If a fo
r
ec
a
st t
r
an
s
ac
t
ion t
hat i
s he
dg
ed r
e
su
lt
s in t
he r
ec
og
nit
ion o
f
a non
-f
in
anc
ial a
s
se
t (fo
r ex
amp
le, i
nv
entor
y
) or a l
i
abil
i
t
y, the g
ain
s
and l
os
s
e
s pr
ev
i
ou
sly d
efer
red i
n th
e he
dge r
e
s
er
ve a
r
e tr
a
ns
fe
r
r
ed
fr
om t
he r
e
s
er
ve a
nd in
clu
de
d in t
he ini
ti
al me
as
ur
em
ent of t
he
cos
t of t
he a
ss
et o
r li
abi
li
t
y
. W
he
n a he
dg
ing in
s
tr
u
men
t ex
pir
e
s
or is s
ol
d, o
r w
he
n a he
dg
e no lo
ng
er m
eet
s t
he cr
iter
ia f
or h
ed
ge
acc
ount
ing
, an
y cum
ul
ati
v
e ga
in or l
os
s ex
is
t
ing i
n the h
ed
ge
re
s
er
v
e at tha
t tim
e re
mai
ns i
n the r
e
s
er
ve a
nd i
s re
co
gni
s
ed
w
hen t
he fo
r
ec
a
st t
r
an
s
ac
t
io
n is ul
tim
ately r
e
co
gni
se
d in th
e
income statement.
W
hen a f
or
e
ca
s
t tr
ans
ac
t
ion i
s no l
ong
er e
xp
ec
te
d to o
ccu
r
, the
cum
ul
ati
v
e ga
in or l
os
s th
at w
a
s re
po
r
ted in oth
er c
omp
r
ehe
ns
iv
e
inc
ome i
s imm
ed
iatel
y tr
a
ns
fe
r
r
ed to t
he in
com
e s
tate
me
nt.
Net investment hedg
e
He
dge
s of n
et in
ve
s
tm
ent
s in f
or
eig
n op
er
a
tio
ns a
re a
cco
unte
d
for s
imil
a
r
ly to c
a
sh
-fl
o
w he
dge
s
. A
n
y gai
n or lo
s
s on th
e he
dg
ing
ins
tr
ument r
el
a
tin
g to the e
f
fe
c
ti
v
e po
r
tion o
f the h
ed
ge i
s
recognis
ed in other comprehensiv
e income; the
gain or loss rel
ating
to any i
nef
fec
ti
v
e po
r
tion i
s r
ec
ogn
is
ed i
mme
di
ately i
n the i
nco
me
st
atem
ent
. W
h
en a fo
re
ign o
pe
r
at
ion i
s di
spo
s
ed of, g
ain
s and l
os
s
e
s
acc
umul
ated in eq
ui
t
y r
el
ated to tha
t ope
r
at
io
n ar
e inc
lud
ed i
n th
e
inc
ome s
t
atem
ent fo
r th
at pe
r
io
d.
Fa
ir value of fi
nancia
l asset
s and liabi
lities
The f
air value
s of financial asset
s and financial liabil
itie
s are the
amo
unt
s at w
h
ich t
he in
s
tr
um
ent c
oul
d be e
xcha
ng
ed i
n a cur
r
e
nt
tr
a
ns
a
c
tio
n bet
we
en w
il
l
ing p
ar
ti
es
, ot
her t
han i
n a for
ce
d or
liquidation sale.
‘IF
R
S 13: Fair v
alu
e me
as
ur
em
ent’ r
e
qui
re
s f
ai
r v
alu
e
me
asu
r
eme
nt
s to be c
l
as
s
if
ie
d acc
or
di
ng to th
e fo
ll
ow
in
g hi
er
a
rc
hy
:
–
Lev
el 1 – qu
oted p
r
ic
es i
n ac
ti
v
e ma
r
ket
s fo
r ide
ntic
a
l as
s
et
s
or liabilitie
s;
–
Lev
el 2 – v
al
uati
on
s in w
hi
ch al
l inp
ut
s a
r
e obs
er
v
a
ble e
it
her
dir
ec
t
ly (
i.
e. as p
r
ic
es
) o
r ind
ir
ec
t
ly (
i.e
. der
iv
ed f
r
om p
r
ice
s
); an
d
–
Lev
el 3 – v
al
uati
on
s in w
hi
ch on
e or m
or
e in
put
s that ar
e
sig
nif
ic
a
nt to the r
e
su
lti
ng v
al
ue a
re n
ot b
as
ed o
n ob
se
r
v
abl
e
mar
ket data
.
Se
e n
ote 21 for i
nfor
matio
n on th
e met
ho
ds w
h
ich t
he Gr
o
up us
e
s to
es
ti
mate t
he f
air v
a
lue
s of i
t
s f
in
anc
ial in
s
tr
u
ment
s.
Div
idends
Di
v
id
en
ds ar
e r
e
co
gnis
e
d as a l
ia
bil
it
y in th
e pe
r
io
d in w
hi
ch th
ey
ar
e aut
ho
r
is
e
d. T
he i
nter
i
m di
v
id
end i
s r
ec
ogn
is
ed w
h
en i
t is p
ai
d
and t
he f
in
al di
v
i
den
d is r
e
co
gni
se
d w
he
n it h
as b
ee
n app
r
ov
ed b
y
sharehold
ers at the Annual Gener
al Meeting.
New
accounting s
t
and
ar
ds ef
fec
tiv
e 2
0
2
2
No ne
w ac
cou
ntin
g s
ta
nd
ar
ds h
av
e be
en a
do
pted i
n the f
in
an
cia
l
ye
ar
. Th
e acc
ount
ing p
ol
ic
ie
s ad
opte
d in t
he pr
e
pa
r
at
ion o
f the
s
e
con
s
ol
ida
ted f
in
anc
ial s
t
atem
ent
s ar
e c
on
sis
tent w
i
th t
ho
se f
ol
lo
we
d
in th
e pr
ev
i
ou
s f
inan
ci
al ye
ar
.
New s
t
andar
ds an
d interpr
et
ations
not y
et a
dopte
d
No oth
er n
ew s
t
an
dar
d
s
, ne
w inter
p
r
et
atio
ns o
r ame
nd
ment
s
to st
an
da
rd
s or i
nter
p
ret
at
ion
s ha
v
e be
en pu
bl
is
he
d w
hic
h
ar
e ex
pe
c
ted to h
av
e a si
gni
fi
c
ant im
pa
c
t on t
he Gr
o
up’
s
financial st
atements.
Par
ent C
ompany
Th
e ul
tim
ate P
ar
ent C
omp
an
y of th
e Gr
o
up is S
mi
ths G
r
oup p
lc
,
a com
pa
ny in
cor
por
a
ted in E
ng
l
an
d and W
ale
s a
nd l
is
te
d on th
e
Lo
nd
on Sto
ck E
xchan
ge.
Th
e ac
cou
nt
s of th
e P
ar
ent C
omp
an
y, Smi
ths G
r
oup p
lc
, ha
ve b
ee
n
pr
ep
ar
e
d in acc
or
d
anc
e w
ith t
he C
om
pa
nie
s A
c
t 2
0
0
6 an
d F
in
anc
ial
Repor
ting Standard 1
01
, 'R
educed Disclosure Framew
ork
'.
Th
e C
omp
an
y acc
oun
t
s ar
e pr
e
se
nted i
n se
pa
r
ate f
in
anc
ial
st
atem
ent
s o
n pa
ge
s 171 to 1
79
. The p
r
in
cip
al s
ubs
idi
ar
i
es o
f the
Pa
r
ent C
omp
an
y ar
e l
is
ted i
n the a
bo
v
e acc
ount
s
.
ACCO
UNTING POL
ICIE
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
115
1 S
egm
ent infor
mation
A
naly
sis b
y op
er
atin
g s
egment
Th
e Gr
o
up is o
r
gan
is
ed i
nto fou
r di
v
is
ion
s: Jo
hn Cr
ane, S
mi
ths D
ete
c
tio
n, F
l
ex-
T
ek and S
mit
hs In
ter
con
ne
c
t. T
h
e
se d
i
v
isi
on
s de
si
gn,
man
uf
ac
t
ur
e an
d sup
po
r
t the fo
ll
ow
i
ng p
ro
du
c
t
s:
–
John
Crane
– me
ch
ani
ca
l se
al
s, s
ea
l sup
po
r
t sy
s
tem
s
, po
w
er tr
ansm
is
si
on co
upl
in
gs a
nd sp
e
cia
li
se
d f
ilt
r
at
ion s
ys
tem
s;
–
Smiths Detection
– sen
s
or
s a
nd s
y
s
tem
s th
at dete
c
t an
d ide
nti
f
y exp
los
i
ve
s
, na
rc
oti
c
s
, we
ap
on
s, c
he
mic
al a
ge
nt
s
, bio
ha
za
r
ds an
d co
ntr
a
ba
nd;
–
Flex
-
T
ek
– engi
ne
er
ed c
om
po
nent
s
, f
le
xi
ble h
os
ing a
nd r
i
gid t
ubi
ng t
hat h
eat a
nd mo
v
e fl
uid
s an
d ga
se
s; an
d
–
Smiths I
nterconnec
t
– spe
ci
al
is
ed e
le
c
tr
oni
c an
d r
a
dio f
r
eq
uen
c
y b
oa
r
d-
le
ve
l an
d w
av
eg
uid
e de
v
ice
s
, co
nn
ec
to
r
s
, c
abl
es
, te
s
t so
cket
s a
nd
sub
-s
ys
tem
s us
ed i
n high
-s
pe
e
d, hi
gh r
el
iab
il
it
y, secu
r
e con
ne
c
ti
v
it
y app
li
c
ati
on
s.
Th
e p
osi
ti
on an
d pe
r
for
ma
nce o
f ea
ch di
v
i
sio
n ar
e r
ep
or
ted at e
ach B
o
ar
d me
et
ing to t
he B
oa
r
d of Dir
e
c
tor
s. T
his i
nfor
matio
n is pr
e
pa
re
d
usi
ng th
e s
am
e acc
ount
ing p
ol
ic
ie
s as t
he co
ns
o
li
date
d f
ina
nci
al inf
or
m
atio
n exce
pt th
at th
e Gr
ou
p us
es h
ea
dl
in
e op
er
a
tin
g pr
of
it to m
on
itor
the d
i
v
isi
on
al r
es
ult
s a
nd o
pe
r
ati
ng a
s
set
s to moni
tor th
e di
v
i
sio
nal p
os
it
ion
. S
ee n
ote 3 an
d note 2
9 for an ex
pl
anati
on of w
hi
ch i
tems a
r
e
excluded from headline measures.
Th
e s
al
e of th
e Gr
ou
p’
s Smi
th
s Me
dic
al b
us
ine
s
s w
a
s com
ple
ted o
n 6 Jan
uar
y 2
0
2
2 a
nd th
e r
es
ult
s o
f Smi
th
s Me
dic
a
l ar
e dis
c
los
e
d as a
dis
co
ntin
ue
d op
er
at
io
n in note 2
7
. Inter
s
e
gme
nt s
ale
s an
d tr
ans
fer
s are ch
ar
g
ed at a
r
m’
s len
gt
h pr
i
ce
s.
Segment tr
ading per
forma
nce
Year e
n
de
d 31 J
u
ly 2
0
22
John
Crane
£m
Smiths
Detection
£m
F
l
e
x-
Te
k
£m
Smiths
Interconnect
£m
Corpor
ate
cost
s
£m
To
t
a
l
£m
Revenue
901
655
6
47
363
–
2,5
66
Div
isional headline
oper
ating
profit
18
8
73
13
3
65
–
4
59
Co
r
p
or
ate hea
dl
i
ne o
pe
r
at
in
g co
s
t
s
–
–
–
–
(
42)
(42)
Headline operating profit
/(loss)
18
8
73
13
3
65
(4
2)
417
Ite
ms e
xcl
ud
ed f
r
o
m he
ad
l
ine m
e
as
ur
e
s (n
ote 3
)
(
2
1)
(37)
(27)
(1)
(
214
)
(
30
0)
Operating profit/(loss)
167
36
10
6
64
(
25
6)
11
7
Year e
n
de
d 31 J
u
ly 2
0
2
1
John
Crane
£m
Smiths
Detection
£m
Flex-
T
ek
£m
Smiths
Interconnect
£m
Corpor
ate
costs
£m
To
t
a
l
£m
Revenue
865
721
508
312
–
2,4
06
Div
isional headline
oper
ating
profit
18
7
99
97
35
–
41
8
Co
r
p
or
ate hea
dl
i
ne o
pe
r
at
in
g co
s
t
s
–
–
–
–
(4
6)
(4
6)
Headline operating profit
/(loss)
18
7
99
97
35
(
4
6)
372
Ite
ms e
xcl
ud
ed f
r
o
m he
ad
l
ine m
e
as
ur
e
s (n
ote 3
)
(3)
(22
)
(14
)
(1)
(6)
(4
6)
Operating profit/(loss)
18
4
77
83
34
(52
)
326
Op
er
a
tin
g pr
of
it i
s s
tate
d af
ter cha
r
gin
g (cr
e
dit
in
g
) the f
ol
lo
w
ing i
tem
s:
Year e
n
de
d 31 J
u
ly 2
0
22
John Crane
£m
Smiths
Detection
£m
F
l
e
x-
Te
k
£m
Smiths
Interconnect
£m
Corpor
ate and
non-headline
£m
To
t
a
l
£m
De
pr
e
ci
ati
on – p
r
op
er
t
y, pl
a
nt an
d e
qui
pm
ent
15
10
7
5
1
38
De
pr
e
ci
ati
on – r
i
ght o
f us
e a
s
se
t
s
15
7
5
2
1
30
Amor
tisation of
capitalis
ed development costs
–
3
–
–
–
3
A
mo
r
tis
at
io
n of s
of
t
w
ar
e
, pa
tent
s a
nd i
nte
ll
ec
t
ua
l pr
o
pe
r
t
y
3
1
–
2
1
7
Am
or
tis
ation of acquire
d intangibles
–
–
–
–
51
51
Share-based payment
3
2
2
1
4
12
Ru
ss
ia i
mp
ai
r
me
nt ch
ar
g
e
s an
d r
el
ate
d c
lo
su
re c
os
t
s
9
10
–
–
–
19
T
ransition ser
vices cost reimbur
s
ement
–
–
–
–
(7)
(7
)
Year e
n
de
d 31 J
u
ly 2
0
2
1
John Crane
£m
Smiths
Detection
£m
Flex-
T
ek
£m
Smiths
Interconnect
£m
Corpor
ate and
non-headline
£m
To
t
a
l
£m
De
pr
e
ci
ati
on – p
r
op
er
t
y, pl
a
nt an
d e
qui
pm
ent
15
12
6
6
1
40
De
pr
e
ci
ati
on – r
i
ght o
f us
e a
s
se
t
s
14
7
4
5
2
32
Amor
tisation of
capitalis
ed development costs
–
7
–
–
–
7
A
mo
r
tis
at
io
n of s
of
t
w
ar
e
, pa
tent
s a
nd i
nte
ll
ec
t
ua
l pr
o
pe
r
t
y
3
1
–
2
1
7
Am
or
tis
ation of acquire
d intangibles
–
–
–
–
53
53
Share-based payment
3
2
1
1
6
13
Str
ategic restr
uct
uring cost
s
4
6
–
10
1
21
Th
e co
r
po
r
ate a
nd n
on
-h
ea
dl
ine c
olu
mn co
mpr
ise
s ce
ntr
a
l info
r
mat
io
n tec
hno
lo
g
y, human r
e
s
our
ce
s an
d he
ad
qu
ar
ter
s co
s
t
s and n
on
-h
ea
dl
in
e
ex
pen
s
es (
s
e
e note 3
).
NO
TE
S T
O T
HE AC
C
OU
NT
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
116
Segment ass
et
s and liabilities
Segment assets
31 Ju
ly 2
0
2
2
John Crane
£m
Smiths
Detection
£m
F
l
e
x-
Te
k
£m
Smiths
Interconnect
£m
Corpor
ate and
non-headline
£m
To
t
a
l
£m
Pr
o
pe
r
t
y, pl
an
t, e
qu
ip
me
nt, r
ight of u
s
e as
s
et
s
, d
ev
el
op
me
nt p
r
oje
c
t
s
,
other intangibles and inve
stme
nts
167
12
7
84
54
399
8
31
Inv
e
ntor
y, tr
a
de a
nd o
th
er r
e
cei
v
able
s
429
524
24
4
167
13
1
,3
77
Segment ass
ets
596
651
328
221
412
2,208
31 Ju
l
y 2
0
21
John Crane
£m
Smiths
Detection
£m
Flex-
T
ek
£m
Smiths
Interconnect
£m
Corpor
ate and
non-headline
£m
To
t
a
l
£m
Pr
o
pe
r
t
y, pl
an
t, e
qu
ip
me
nt, r
ight of u
s
e as
s
et
s
, d
ev
el
op
me
nt p
r
oje
c
t
s
,
other intangibles and inve
stme
nts
15
2
117
75
44
18
406
Inv
e
ntor
y, tr
a
de a
nd o
th
er r
e
cei
v
able
s
356
417
16
0
12
7
10
1,
0
7
0
Segment ass
ets
508
534
235
17
1
28
1,
476
Non
-h
ea
dl
in
e as
s
et
s co
mpr
ise r
e
cei
v
ab
le
s r
el
at
ing to n
on
-h
ea
dl
in
e item
s
, ac
qui
sit
io
ns an
d di
sp
os
al
s.
Segment liabilities
31 Ju
ly 2
0
2
2
John Crane
£m
Smiths
Detection
£m
F
l
e
x-
Te
k
£m
Smiths
Interconnect
£m
Corpor
ate and
non-headline
£m
To
t
a
l
£m
Div
isional liabilitie
s
(15
5
)
(
3
47
)
(9
1)
(8
5)
–
(
67
8)
Corp
or
ate
and non-headline liabilities
–
–
–
–
(385)
(385)
Segment liabilities
(15
5
)
(3
47
)
(
9
1)
(8
5)
(38
5)
(1,
0
6
3
)
31 Ju
l
y 2
0
21
John Crane
£m
Smiths
Detection
£m
Flex-
T
ek
£m
Smiths
Interconnect
£m
Corpor
ate and
non-headline
£m
To
t
a
l
£m
Div
isional liabilitie
s
(13
7
)
(
2
76
)
(6
6)
(
61)
–
(54
0)
Corp
or
ate
and non-headline liabilities
–
–
–
–
(3
3
6)
(
3
36)
Segment liabilities
(13
7
)
(
2
76
)
(6
6)
(
61)
(
3
36)
(
8
76)
Non
-h
ea
dl
in
e li
abi
li
tie
s c
omp
r
is
e pr
o
v
is
io
ns an
d acc
r
ua
l
s r
el
a
tin
g to no
n-
he
adl
in
e ite
ms
, ac
qui
si
tio
ns a
nd di
sp
os
al
s.
Reconciliation of segment assets and liabilities to statutory assets and liabilities
A
sset
s
Liabilities
31 Ju
ly
2022
£m
31 Ju
l
y
20
21
£m
31 Ju
ly
2022
£m
31 Ju
l
y
20
21
£m
Segment asset
s and liabilities
2,208
1,
476
(1,
0
6
3
)
(
8
76)
Good
w
ill and acquired intan
gibles
1,
5
01
1,
4
2
3
–
–
Der
iv
ative
s
4
77
(
47
)
(
3)
Cur
rent a
nd d
ef
er
r
e
d ta
x
14
5
167
(
111)
(
12
2
)
Retirement benefit assets and obligations
309
546
(
11
5
)
(12
8
)
Ca
sh a
nd b
o
r
r
ow
i
ng
s
1,
0
5
6
405
(
1
,1
6
6
)
(1,
5
0
2
)
A
s
s
et
s a
nd l
ia
bi
li
t
ie
s he
ld f
or s
a
le
–
1,
2
4
3
–
(
28
3)
Statutor
y asset
s and liabilities
5,223
5,3
37
(
2,50
2)
(
2
,9
14
)
Segment capital expenditure
Th
e c
ap
it
al ex
p
end
it
ur
e on p
ro
pe
r
t
y, pl
ant an
d eq
uip
men
t, c
ap
it
al
is
e
d de
ve
lop
me
nt an
d othe
r int
an
gib
le as
s
et
s fo
r ea
ch di
v
i
si
on is:
John Crane
£m
Smiths
Detection
£m
Flex-
T
ek
£m
Smiths
Interconnect
£m
Corpor
ate and
non-headline
£m
To
t
a
l
£m
Ca
pi
t
al e
xp
en
di
tu
r
e ye
ar e
nd
e
d 31 Jul
y 2
0
2
2
24
23
11
12
1
71
Ca
pi
t
al e
xp
en
di
tu
r
e ye
ar e
nd
e
d 31 Jul
y 2
0
21
19
23
9
9
2
62
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
117
Segment capital employed
Ca
pi
ta
l emp
lo
ye
d is a n
on
-s
t
atu
tor
y me
as
ur
e of in
ve
s
te
d re
s
ou
rc
es
. I
t com
pr
i
se
s s
t
atu
tor
y ne
t as
s
et
s ad
jus
te
d to ad
d go
od
w
il
l r
ec
og
nis
e
d
dir
ec
t
ly in r
e
s
er
ve
s in r
e
sp
e
c
t of sub
si
diar
ies a
cqu
ir
ed b
efo
re 1 A
ug
us
t 199
8 of £
478
m (
F
Y
2
0
21
: £7
8
7m) an
d el
im
inate r
et
ir
em
ent be
nef
i
t
as
s
et
s an
d obl
i
gati
on
s an
d li
tig
ati
on p
ro
v
is
io
ns r
el
at
in
g to non
-
he
adl
in
e ite
ms
, bo
th ne
t of r
el
ate
d ta
x
, an
d net d
ebt
. S
e
e note 2
9 f
or a
re
co
nci
li
ati
on of n
et as
s
et
s to c
ap
it
al e
mpl
oy
ed
.
Th
e 12-month r
o
ll
in
g av
er
age c
ap
it
al e
mpl
oy
ed b
y di
v
i
si
on
, w
hic
h Smi
th
s us
e
s to c
alc
ul
ate di
v
i
sio
na
l re
tur
n o
n c
api
t
al em
plo
y
ed
, is:
31 Ju
ly 2
0
2
2
John Crane
£m
Smiths
Detection
£m
F
l
e
x-
Te
k
£m
Smiths
Interconnect
£m
To
t
a
l
£m
Aver
age divisional capital employed
970
1,
019
52
0
400
2
,9
0
9
Aver
age corp
or
ate capital employed
31
Average total capital employed –
continuing operations
2
,94
0
31 Ju
l
y 2
0
21
John Crane
£m
Smiths
Detection
£m
Flex-
T
ek
£m
Smiths
Interconnect
£m
To
t
a
l
£m
Aver
age divisional capital employed
937
1,
0
18
4
49
395
2,7
9
9
Aver
age corp
or
ate capital employed
31
Average total capital employed –
continuing operations
2,830
Analysis of reven
ue
Th
e r
ev
en
ue fo
r th
e main p
r
od
uc
t an
d s
er
v
ice l
in
e
s for e
ac
h di
v
is
ion i
s:
John Crane
Original
Equipment
£m
Afte
rmark
e
t
£m
To
t
a
l
£m
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
2
2
279
62
2
9
01
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
21
273
59
2
865
Smith
s Detec
tion
Aviation
£m
Other securi
t
y
sy
ste
ms
£m
To
t
a
l
£m
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
2
2
4
67
18
8
655
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
21
546
17
5
7
21
F
l
e
x
-Te
k
Aerosp
ace
£m
Industrial
s
£m
To
t
a
l
£m
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
2
2
116
531
6
47
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
21
99
409
508
Smiths Interconnect
Components
,
connector
s &
subs
y
stem
s
£m
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
2
2
363
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
21
312
Af
ter
ma
r
ket s
al
es c
ontr
ibute
d £1
,
2
3
8
m (
F
Y
2
0
21
: £1
,
1
98
m) o
f Gr
ou
p re
v
enu
e: Joh
n Cr
a
ne af
ter
ma
r
ket s
ale
s w
er
e £
62
2m (
F
Y
2
0
21
: £
59
2m
);
Smi
th
s Dete
c
ti
on af
ter
ma
r
ket s
ale
s w
er
e £
3
5
5
m (F
Y
2
0
2
1
: £3
31
m); F
lex-
T
ek af
te
r
ma
r
ket s
ale
s w
er
e £
2
6
1
m (F
Y
2
0
21
: £
2
70
m
); an
d Smi
th
s
Inter
co
nne
c
t af
ter
mar
ket s
a
le
s w
er
e £n
il (
F
Y
2
0
21
: £5
m
).
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
118
Di
v
is
ion
al r
e
ve
nue i
s an
aly
s
ed b
y th
e Sm
ith
s Gr
o
up key g
lob
al m
ar
ket
s a
s fo
ll
ow
s:
General
Industrial
£m
Safet
y &
Secur
it
y
£m
Energ
y
£m
Aerosp
ace
£m
To
t
a
l
£m
John Crane
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
2
2
371
–
530
–
9
01
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
21
355
–
510
–
865
Smith
s Detec
tion
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
2
2
–
655
–
–
655
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
21
–
7
21
–
–
721
F
l
e
x
Te
k
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
2
2
531
–
–
116
6
47
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
21
409
–
–
99
508
Smiths Interconnect
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
2
2
16
6
14
4
–
53
363
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
21
13
9
12
8
–
45
312
To
t
a
l
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
2
2
1,
0
6
8
79
9
5
30
169
2,56
6
Rev
en
ue y
e
ar e
nd
ed 31 J
ul
y 2
0
21
903
8
49
510
14
4
2,406
Th
e Gr
o
up’
s s
tat
uto
r
y re
v
enu
e is a
nal
ys
e
d as f
ol
lo
w
s:
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
S
al
e of go
o
ds r
e
co
gn
is
e
d at a po
int i
n ti
me
1,
8
4
9
1,7
2
3
S
al
e of go
o
ds r
e
co
gn
is
e
d ov
er t
im
e
99
94
Ser
vices re
cognised over time
61
8
589
2,56
6
2,406
Analysis by geographical areas
Th
e Gr
o
up’
s r
ev
en
ue b
y de
s
tin
ati
on an
d no
n-
c
ur
r
ent o
per
atin
g as
s
et
s by l
oc
at
io
n ar
e sh
ow
n b
el
ow
:
Reve
nue
Int
a
n
gi
bl
e a
s
se
t
s
, r
i
gh
t of u
s
e
as
s
et
s and p
r
op
e
r
t
y, pl
a
nt a
nd
equipment
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Amer
ic
as
1,
4
2
3
1,
2
4
4
1,
3
2
4
1,1
9
5
Europ
e
480
522
49
8
512
A
sia-P
acific
421
390
76
70
Res
t o
f th
e Wor
l
d
242
250
39
41
2,56
6
2,406
1,9
3
7
1,
8
18
Rev
enu
e by d
e
st
ina
tio
n at
tr
ibut
ab
le to th
e Uni
ted K
ingd
om w
a
s £
7
5m (
F
Y
2
0
21
: £69m
). O
the
r r
ev
enu
e fo
und to b
e si
gni
f
ic
ant in
clu
de
d, t
he
Uni
ted St
ate
s of A
m
er
i
c
a, tot
al
l
ing £1,2
0
6m (
F
Y
2
0
21
: £1
,0
4
7m), Chi
na (e
xclu
din
g Ho
ng K
ong
) £1
32
m (F
Y
2
0
21: £
123
m) a
nd G
er
m
any £123
m
(F
Y
2
0
21: £
130
m
). Rev
enu
e by d
e
st
ina
tio
n ha
s be
en s
el
ec
te
d as th
e b
asi
s fo
r at
tr
i
bu
tin
g r
ev
enu
e to ge
og
r
ap
hi
ca
l ar
ea
s as t
his w
as the
ge
ogr
aphi
c at
tr
i
bu
tio
n of r
ev
en
ue u
se
d by m
an
ag
eme
nt to r
ev
i
ew b
usi
ne
s
s pe
r
for
ma
nce
.
Non
-
cur
rent a
s
set
s loc
ate
d in th
e Uni
ted K
i
ng
dom to
ta
l £1
0
8
m (
F
Y
2
0
21
: £1
10m
). Si
gni
f
ic
ant n
on
-c
ur
r
en
t as
s
et
s he
ld in t
he Un
ite
d St
ate
s of
A
me
r
ic
a £1,26
0
m (F
Y
2
0
21: £
1,
138
m
) an
d Ge
r
ma
ny £
3
40
m (
F
Y
2
0
21
: £
3
5
0
m).
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
119
2 Op
er
ating cos
t
s
Th
e Gr
o
up's ope
r
at
ing c
os
t
s fo
r cont
inu
ing o
pe
r
at
ion
s ar
e an
aly
s
e
d as fo
ll
ow
s:
Year e
n
de
d 31 J
u
ly 2
0
22
Year e
n
de
d 31 J
ul
y 2
0
2
1
Headline
£m
Non-headline
(n
ot
e 3)
£m
To
t
a
l
£m
Headline
£m
Non-headline
(n
o
te 3
)
£m
To
t
a
l
£m
Co
s
t of s
al
e
s – dir
e
c
t m
ater
ial
s
, l
a
bo
ur
, pr
o
du
c
ti
on a
nd
distr
ibution over
heads
1,
6
0
5
–
1,
6
0
5
1,
49
1
–
1,
4
9
1
Sell
ing costs
200
–
200
18
8
–
18
8
Administr
ati
ve expense
s
3
51
300
6
51
355
46
4
01
T
ransition ser
vices cost reimbur
s
ement
(7)
–
(7
)
–
–
–
To
t
a
l
2
,1
4
9
300
2
,
4
49
2,03
4
46
2,080
Fol
lo
w
in
g th
e s
ale of t
he S
mit
hs M
ed
ic
al b
usi
ne
s
s, t
he G
r
oup h
as p
ro
v
id
ed t
r
a
nsi
ti
on s
er
v
ic
es to t
he S
mit
hs M
ed
ic
al G
ro
up, w
hi
ch is
disclose
d above as tr
ansition ser
vice
s cost reimbur
sement.
Operating profit is stated after charging (crediting):
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Res
e
ar
c
h an
d de
ve
lo
pm
en
t ex
pe
ns
e
80
76
De
pr
e
ci
ati
on o
f pr
op
e
r
t
y, pl
ant a
nd e
qu
ip
me
nt
38
40
De
pr
e
ci
ati
on o
f r
ig
ht of u
se a
s
s
et
s
30
32
Amor
tisation of
intangible
ass
ets
61
67
Str
ateg
ic r
e
s
tr
u
c
tu
r
in
g pr
o
gr
amm
e an
d w
r
ite
-
d
ow
ns
–
21
Ru
ss
ia i
mp
ai
r
me
nt an
d r
el
a
ted c
lo
su
r
e co
st
s (s
ee n
ote 11
)
19
–
T
ransition ser
vices cost reimbur
s
ement
(7
)
–
Res
e
ar
ch an
d de
ve
lo
pme
nt (R&D
) c
as
h cos
t
s w
er
e £107m (F
Y
2
0
21
: £94
m) c
omp
r
is
ing £
8
0
m (
F
Y
2
0
21
: £
7
6m
) of R&D e
xp
en
se
d to th
e inc
om
e
st
atem
ent
, £1
2m (
F
Y
2
0
21
: £8
m
) of c
ap
it
al
is
e
d cos
t
s a
nd £15m (F
Y
2
0
21
: £10m) of c
us
to
mer f
un
de
d R&D.
Ad
mini
s
tr
a
ti
v
e ex
pen
s
es i
nc
lud
e £
3m (
F
Y
2
0
21
: £1
m) i
n re
s
pe
c
t of le
as
e p
ay
m
ent
s fo
r sh
or
t-ter
m and l
ow
-
v
al
ue le
as
e
s w
hic
h w
er
e not
inc
lud
ed w
i
th
in r
ig
ht of us
e as
s
et
s a
nd le
as
e l
ia
bil
it
ie
s
.
Auditors' remuneration
Th
e fo
ll
ow
i
ng fe
e
s we
re p
ai
d or a
re p
a
y
abl
e to th
e Co
mp
any
’s audi
tor
s
, K
P
M
G L
L
P and ot
he
r fi
r
ms i
n the K
PMG n
et
w
o
r
k
, for t
he y
ear e
nd
ed
31 July 2
0
2
2
.
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Audit ser
vices
Fe
es p
a
y
ab
le to t
he C
o
mp
an
y
’s audi
tor
s for th
e au
di
t of t
he C
om
p
an
y’s ann
ua
l f
ina
nc
ia
l st
at
em
ent
s
2.8
2.3
Fe
es p
a
y
ab
le to t
he C
o
mp
an
y
’s audi
tor
s and i
t
s as
s
o
ci
ate
s fo
r oth
er s
e
r
vi
ce
s:
– the a
ud
it o
f th
e Co
mp
a
ny
’s subs
id
ia
r
ie
s
4.6
4.2
7.
4
6.5
All other ser
v
ices
0.8
0
.9
O
the
r se
r
v
ice
s co
mpr
ise au
di
t-re
l
ate
d as
su
r
an
ce s
er
v
ic
es £
0
.5
m (F
Y
2
021
: £0
.
4m
) an
d fe
e
s for r
ep
or
tin
g ac
cou
nta
nt se
r
vi
ce
s in c
onn
ec
t
ion
w
ith a c
l
as
s 1 d
isp
os
a
l £0
.
3m (
F
Y
2
0
21
: £
0.5
m
). Au
di
t-re
l
ated a
s
su
r
an
ce s
er
v
ice
s i
ncl
ud
e the r
e
v
ie
w of th
e Inter
im Repor
t
. T
otal f
ee
s fo
r no
n
aud
it s
er
v
ic
es c
omp
r
is
e 1
1
% (F
Y
2
021
: 13%
) of au
dit f
ee
s
.
In th
e cur
r
e
nt ye
ar
, the Gr
o
up ha
s ad
di
tio
na
lly a
gr
e
ed £
0.
5
m of ad
di
tio
nal f
ee
s w
i
th th
e Gr
ou
p aud
ito
r
s r
el
at
ing to t
he au
di
t of th
e pr
i
or y
ear
financial st
atements.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
12
0
3 Non-s
t
atutor
y pr
ofit
measure
s
Headl
ine p
rof
it m
easur
e
s
Th
e Gr
o
up ha
s id
enti
f
ie
d and d
ef
ine
d a ‘h
ea
dl
in
e’ mea
sur
e of p
er
for
mance w
h
ich i
s not i
mp
ac
te
d by m
ater
i
al n
on-
r
ec
ur
r
i
ng i
tem
s or i
tems
con
si
der
e
d no
n-
op
er
ation
al
/
tr
a
din
g in n
atur
e
. T
his n
on
-
GA
A
P me
as
ur
e of pr
of
i
t is n
ot inten
de
d to be a s
ub
st
it
ute fo
r an
y IF
R
S me
as
ur
e
s of
per
fo
r
man
ce, b
ut i
s a key m
ea
sur
e u
se
d b
y man
ag
em
ent to un
der
st
and a
nd m
ana
ge p
er
for
m
an
ce. S
e
e th
e dis
cl
os
ur
e
s on pr
e
s
ent
ati
on of
re
s
ult
s in a
cco
unti
ng p
ol
ic
ie
s for a
n ex
pl
a
nati
on of t
he a
dju
st
me
nt
s. T
h
e ite
ms e
xclu
de
d fr
o
m 'he
a
dl
ine' ar
e r
efer
red to a
s ‘non
-h
ea
dl
ine’ ite
ms
.
Non-hea
dline oper
ating profit items
i. CONTINUING OPERATIONS
Th
e no
n-
he
ad
li
ne i
tems i
nc
lud
ed i
n st
at
uto
r
y ope
r
at
ing p
r
of
it fo
r co
ntinu
ing o
pe
r
at
io
ns w
er
e as f
ol
lo
w
s:
Notes
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Post-acquisition integration costs and fair value adjustment unwind
Unw
ind of a
cq
uis
it
io
n b
al
a
nce s
he
et f
a
ir v
a
lue u
pl
i
f
t
(2)
(
1)
Integration progr
amme cost
s
–
(1)
Acquisition and
disposal related transac
tion costs and provision releases
Business acquisition/disposal costs
(5)
(1)
Legac
y pension scheme arrangement
s
Pas
t ser
v
ice cost
s for benefit equalisation and improvement
s
8
(
4
3)
(6)
Retirement benefit scheme settlement loss
8
(
17
1)
–
Non-headline litigation provision movements
Movement in
prov
ision held against Titeflex
Cor
por
ation subrogation claims
23
(2)
13
Prov
ision for John
Crane, Inc. asbestos litigation
23
(7
)
(6)
Co
s
t r
ec
ov
er
y f
or J
ohn C
r
a
ne
, Inc
. a
sb
e
s
tos l
i
ti
gat
io
n
–
9
Other items
Ru
ss
ia i
mp
ai
r
me
nt ch
ar
g
e
s an
d r
el
ate
d c
lo
su
re c
os
t
s
11
(
19
)
–
Am
or
tis
ation of acquire
d intangible ass
ets
10
(
51)
(5
3)
Non-headline items in operating profit –
continuing operations
(30
0)
(4
6)
Post-acquisition
integration costs and fair value adjustment unwind
Th
e im
pa
c
t of un
w
ind
ing t
he a
cqui
si
tio
n b
al
an
ce sh
eet f
a
ir v
al
ue ad
jus
t
ment
s r
e
qui
re
d b
y IF
R
S 3 'B
usi
ne
s
s com
bin
ati
on
s' wa
s re
co
gn
is
ed a
s
non
-h
ea
dl
in
e as t
he ch
ar
ge d
id n
ot r
el
ate to tr
adin
g ac
t
i
v
it
y. The £
2
m (F
Y
2
0
2
1
: £1
m) cha
r
ge w
a
s du
e to the u
nw
in
d of f
air v
a
lue u
pl
if
ts o
n th
e
acq
uis
it
ion of Ro
y
al M
et
al P
r
odu
c
t
s
.
Th
e £1
m of inte
gr
a
tio
n pr
o
gr
a
mme c
os
t
s in F
Y
2
0
21 p
r
in
cip
al
ly r
el
a
ted to d
efi
ne
d pr
oj
ec
t
s f
or th
e inte
gr
at
io
n of Uni
ted F
l
ex
ibl
e into th
e
ex
is
tin
g F
le
x-
T
e
k bus
ine
s
s
. Inte
gr
a
tio
n pr
o
gr
a
mme c
os
t
s in
clu
de
d th
e dir
ec
t c
os
t
s of o
r
gan
is
at
ion
al ch
an
ge, s
ite r
ation
al
is
at
ion a
nd e
nti
t
y
clo
sur
e c
os
t
s
. T
he Un
ite
d F
lex
ib
le inte
gr
ation p
r
ogr
amme c
on
clu
de
d in th
e cur
rent y
ea
r
. Integr
a
tio
n cos
t
s w
er
e r
e
cog
nis
e
d as n
on
-h
ea
dl
ine
item
s be
c
au
se t
he
y w
er
e con
si
der
e
d mate
r
ia
l and b
ea
r no r
el
ation to t
he on
go
ing p
er
for
mance o
f the a
cq
uir
ed b
us
ine
s
s
es
.
Acquisition and
dispos
al related transac
tion costs and provision releases
Th
e £
5
m of bu
sin
es
s a
cqu
isi
ti
on
/dis
po
s
al co
s
t
s (
F
Y
2
0
21
: £1
m) pr
i
nci
pa
ll
y re
l
ate to a pr
o
v
is
ion f
or p
otenti
al l
it
iga
tio
n ex
pe
ns
e
s re
l
ati
ng to an
acq
uir
e
d bus
ine
s
s th
at w
er
e unk
no
w
n at t
he ti
me of t
he ac
qui
si
tio
n. T
h
e
se c
os
t
s ar
e r
ec
og
nis
e
d as n
on
-h
ea
dl
ine i
tem
s be
c
aus
e t
he
y enti
re
ly
re
l
ate to an a
cqu
isi
ti
on tr
ans
ac
t
io
n and a
re c
on
sid
er
e
d to be n
on
-tr
adin
g in nat
ur
e.
Legac
y pension scheme arrangement
s
Th
e cu
r
r
ent y
ea
r pa
s
t se
r
vi
ce co
s
t
s of £
4
3m (F
Y
2
0
21: £6m) c
omp
r
is
e
s th
e fol
lo
w
in
g:
–
£
19m of cos
t
s (
F
Y
2
0
21
: £6m
) th
at w
er
e r
ec
ogn
is
ed i
n re
s
pe
c
t of th
e his
to
r
ic e
qua
li
s
ati
on of r
et
ir
eme
nt be
nef
i
t
s for m
en an
d w
ome
n (
se
e
note 8 fo
r f
ur
ther d
et
ail
s); and
–
£2
4m o
f cos
t
s (
F
Y
2
0
21
: £n
il
) t
hat w
er
e r
e
cog
nis
e
d fol
lo
w
in
g th
e T
I Gr
ou
p Pen
si
on S
ch
em
e (
T
I
GP
S) exe
cu
tin
g an in
su
r
an
ce bu
y
-
in po
li
c
y.
Th
is r
ef
le
c
t
s th
e ex
pe
c
t
atio
n th
at the T
I
GP
S tr
us
te
e w
ill u
se a
ny s
ur
pl
us
, r
em
aini
ng af
ter the c
os
t
s of b
u
y
ing
-
ou
t an
d w
ind
ing
-u
p the
sc
hem
e ha
ve b
e
en met
, to im
pr
o
ve m
emb
er b
en
efi
t
s (
s
ee n
ote 8 fo
r fu
r
ther d
eta
il
s
).
Th
e
se p
a
st s
er
v
i
ce co
s
t
s ar
e r
epo
r
ted as n
on
-h
ea
dl
in
e as th
ey a
r
e non
-
re
cu
r
r
in
g an
d re
l
ate to le
ga
c
y p
en
sio
n li
abi
li
ti
es
.
A £1
71
m ret
ir
eme
nt be
nef
i
t sc
hem
e s
et
tl
em
ent lo
s
s ha
s be
en r
ec
og
nis
e
d in th
e cur
rent y
ea
r (F
Y
2
0
2
1
: £nil
) fol
lo
w
ing T
I
GP
S exec
uti
ng an
ins
ur
a
nce b
u
y
-in p
ol
ic
y for it
s r
e
main
in
g unin
sur
e
d l
iab
il
iti
e
s (
se
e note 8 f
or f
ur
the
r det
ail
s). T
his i
tem i
s r
ep
or
ted as n
on
-h
ea
dl
in
e as i
t is
non
-r
e
cu
r
r
in
g and r
e
l
ate
s to le
gac
y pen
sio
n l
iab
ili
ti
es
.
Non-headline litigation provision movements
Th
e fo
ll
ow
i
ng l
it
iga
tio
n cos
t
s a
nd r
e
cov
er
ies h
av
e be
en t
re
ate
d as n
on
-he
a
dl
ine i
tem
s be
c
aus
e th
e pr
o
v
is
ion
s w
er
e tr
ea
ted a
s no
n-
he
adl
in
e
w
hen o
r
ig
ina
lly r
e
co
gni
se
d an
d th
e sub
ro
ga
tio
n cl
ai
ms a
nd l
it
iga
tio
n re
l
ate to pr
o
du
c
t
s tha
t the G
r
oup n
o lo
nge
r s
ell
s in the
s
e ma
r
ket
s:
–
The £
2
m ch
ar
ge (
F
Y
2
0
21
: £13m cr
edi
t
) r
e
co
gni
se
d by T
itefl
ex C
or
p
or
ation i
s pr
i
nci
pa
ll
y in r
es
pe
c
t of an i
ncr
e
as
e in t
he e
s
tim
ated c
os
t of
fu
tu
re c
l
aim
s
. S
ee n
ote 2
3 fo
r f
ur
ther d
et
ail
s; and
–
The £
7m cha
r
ge (
F
Y
2
0
21
: £6
m cha
r
ge
) r
eco
gn
is
ed f
or Jo
hn Cr
ane, In
c
. asb
e
s
tos l
it
iga
tio
n pr
o
v
isi
on w
a
s pr
i
nci
pa
lly d
ue to a
n inc
re
as
e
d
pr
ov
i
si
on fo
r ad
v
er
s
e ju
dg
eme
nt
s an
d le
gal d
efen
ce c
os
t
s
. T
he co
s
t
s re
co
v
er
ed v
i
a ins
ur
er s
et
t
lem
ent
s i
n F
Y
2
0
21 we
r
e £9
m. S
e
e note 2
3
for f
ur
the
r det
ai
l
s
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
121
Other items
Fol
lo
w
in
g th
e de
cis
ion i
n Mar
ch 2
02
2 to su
sp
en
d s
ale
s into R
us
si
a the G
r
oup h
as r
e
co
gni
se
d £1
9m (
F
Y
2
0
21
: £n
il
) o
f Rus
s
ia im
pa
ir
me
nt
cha
r
ge
s an
d re
l
ate
d clo
sur
e c
os
t
s (
s
ee n
ote 1
1 for f
ur
ther d
et
ail
s). Th
e
se e
xp
en
se
s a
re r
e
co
gni
se
d as n
on
-h
ea
dl
in
e item
s a
s the
y ar
e b
oth
non
-r
e
cu
r
r
in
g and m
ater
ial in si
ze.
Ac
quir
e
d int
an
gib
le a
ss
et a
mor
ti
s
ati
on co
s
t
s of £
51
m (F
Y
2
0
21
: £5
3m) w
er
e r
e
co
gni
se
d in th
e cu
r
r
ent y
ear
. T
his w
a
s co
ns
ide
r
ed to b
e a no
n-
he
adl
in
e ite
m on th
e ba
si
s tha
t the
s
e ch
ar
ge
s r
e
sul
ted f
r
om a
cqu
isi
ti
on ac
cou
ntin
g an
d we
re n
on
-
op
er
ation
al in n
atur
e
.
Non-headline finance costs items
Th
e no
n-
he
ad
li
ne i
tems i
nc
lud
ed i
n fi
nan
ce co
s
t
s for c
onti
nui
ng op
er
ation
s w
er
e as f
ol
lo
w
s:
Notes
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Unwind of discoun
t on provisions
23
(3)
(2)
Other finance income – retirement benefits
8
7
6
Fair v
alue g
ain o
n in
v
es
t
me
nt in e
ar
l
y s
ta
g
e bu
sin
e
s
s
14
1
–
Foreign exchange
gain (loss) on in
tercompany loan with discont
inued operations
22
(50)
Non-headline items in
finance costs –
continuing
oper
ations
27
(
4
6)
Continuing operations –
non-headline loss before taxation
(2
73)
(9
2
)
Th
e f
ina
nc
ing e
lem
ent
s of n
on
-h
ea
dl
ine l
eg
ac
y liab
il
it
ie
s
, inc
lud
ing t
he £
3
m (F
Y
20
21
: £
2m
) un
w
in
d of dis
co
unt o
n pr
ov
i
si
on
s, w
er
e e
xclu
de
d
fr
om h
ea
dl
in
e fi
nan
ce c
os
t
s be
c
au
se t
he
s
e pr
ov
i
si
on
s we
re o
r
ig
ina
lly r
e
co
gni
se
d a
s non
-
he
adl
in
e and t
hi
s tr
eat
men
t has b
e
en ma
int
ain
ed
for o
ng
oin
g cos
t
s a
nd cr
e
di
t
s.
O
the
r fi
nan
ce in
co
me co
mpr
ise
s £
7m (F
Y
2
0
21: £6m) of f
i
nan
cin
g cr
e
dit
s r
e
l
atin
g to r
etir
e
ment b
en
ef
it
s
. T
he
s
e w
er
e excl
ud
ed f
r
om h
ea
dl
ine
fi
nan
ce co
s
t
s be
c
aus
e t
he on
go
ing c
os
t
s an
d cr
e
dit
s a
r
e a le
gac
y of pr
ev
i
ou
s emp
lo
ye
e pe
ns
ion a
r
r
a
ng
eme
nt
s
.
For
ei
gn exc
han
ge g
ain
s or l
os
s
es o
n inter
c
omp
an
y f
ina
nci
ng b
et
w
e
en S
mit
hs M
edi
c
al an
d th
e cont
inu
ing G
r
oup w
er
e r
ec
og
nis
e
d on th
e f
ace
of the i
nco
me s
t
atem
ent a
s a non
-
he
adl
in
e ite
m due to t
he c
l
as
si
f
ic
ati
on of t
he S
mit
hs M
ed
ic
al di
v
i
sio
n as a d
is
co
ntinu
ed o
pe
r
at
ion
. T
he
£2
2m foreign excha
nge gain in
continui
ng oper
ations (F
Y
2
021
: £50m loss
) mat
ches the foreign ex
change loss in discont
inued oper
ations.
Th
is w
a
s excl
ud
ed f
r
om h
ea
dl
ine n
et f
ina
nce c
os
t
s a
s the
s
e f
air v
a
lue m
ov
em
ent
s w
er
e n
on
-o
pe
r
at
io
nal in n
atu
r
e and w
er
e p
ur
ely a
consequence of the
pres
entational requirements for
discontinued operations.
Non-headline taxation items
Th
e no
n-
he
ad
li
ne i
tems i
nc
lud
ed i
n ta
xa
tio
n for c
ont
inui
ng op
er
atio
ns w
er
e as f
ol
lo
w
s:
Notes
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
T
ax c
re
d
it o
n no
n-
he
a
dl
in
e lo
s
s
6
19
9
(Increase)/
decrease in
unrecogn
ised UK
defe
rr
ed tax
asset
6
(5)
4
Non-headline items in taxation –
continuing operations
14
13
Continuing operations –
non-headline loss for the
year
(
2
59)
(7
9)
Mov
em
en
t in u
nr
ec
og
ni
se
d UK d
ef
e
r
re
d t
ax a
s
s
et
Th
e
se m
o
vem
ent
s a
re r
e
po
r
ted as n
on
-h
ea
dl
ine b
ec
a
us
e th
e pr
i
or y
ear c
ha
r
ge w
a
s re
po
r
ted as n
on
-h
ea
dl
ine
. In F
Y
2
019 £3
6
m of def
er
r
ed
ta
x w
as d
er
e
co
gni
se
d fo
ll
ow
in
g th
e de
ci
sio
n to se
pa
r
ate S
mi
ths M
ed
ic
al w
h
ich r
e
duc
es t
he G
ro
up's pr
of
it
ab
il
it
y in the U
K
. T
hi
s ye
ar
,
fol
lo
w
in
g s
ale of M
ed
ic
al t
her
e i
s an ad
di
tio
na
l non
-
he
adl
in
e ch
ar
ge fo
r UK l
os
s
es
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
12
2
ii. DISCONTINUED OPERATIONS
The non-headline items for discon
tinued operations were as follows:
Notes
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Non-headline oper
ating profit items
Medfusion documentation remediation
cost
s
(3
3)
–
Impairment of investment in Ivenix
, Inc conver
tible debt
(14
)
–
Medical separ
ation cost
s
–
(
18
)
Imp
ai
r
me
nt of c
a
pi
t
al
is
e
d de
v
el
op
me
nt co
s
t
s an
d r
el
ate
d a
s
se
t
s
–
(
61
)
Non-headline finance costs items
Foreign exchange
(loss)
/gain
on in
tercompany loan with parent
(22)
50
Gain on sale of
discontinued oper
ation
Ga
in o
n the s
ale of S
mi
th
s Me
di
c
al to I
CU M
ed
ic
a
l
, Inc
.
27
1,
0
3
6
–
Non-headline ta
xation items
T
ax o
n no
n-
he
a
dl
in
e lo
s
s
27
6
23
Non-headline items in profit from
discontinued operations
973
(6)
Pr
of
i
t fo
r th
e ye
a
r – no
n
-h
e
ad
li
ne i
te
m
s fo
r co
nt
in
ui
ng a
nd d
is
c
on
tin
u
ed o
pe
r
a
ti
on
s
714
(8
5)
In th
e cur
r
e
nt ye
ar S
mit
hs M
edi
c
al r
ec
og
nis
e
d a pr
o
v
isi
on of £
3
3m ag
ain
s
t the e
xp
ec
te
d co
s
t
s of th
e re
me
dia
tio
n ac
ti
on
s r
equ
ir
ed to a
dd
re
s
s
eac
h of th
e ob
se
r
v
atio
ns a
nd di
s
cus
s
ion i
tem
s co
nta
ine
d in th
e US F
oo
d an
d Dr
ug Ad
mini
s
tr
a
tio
n (F
D
A
) ‘
fo
r-
c
au
se’ au
di
t fi
ndi
ng
s on th
e
Medfusion produc
t range.
In th
e cur
r
e
nt pe
r
io
d a de
cis
io
n w
as t
aken b
y S
mit
hs M
edi
c
al to ex
i
t the
ir co
mme
rc
ial a
gr
e
eme
nt w
it
h I
ve
nix
, I
nc
. T
he
s
e cir
cu
ms
t
anc
e
s
hav
e r
e
sul
ted in a c
ha
ng
e in s
tr
ate
g
y an
d ha
ve t
r
ig
ge
re
d an in
di
c
ator of im
pa
ir
m
ent to th
e c
ar
r
y
in
g v
alu
e of th
e Sm
ith
s Me
di
ca
l inv
e
s
tme
nt
in I
ve
ni
x, I
nc
. A
s this ch
an
ge in c
ir
cum
s
ta
nce
s in
di
ca
tes t
hat i
t is n
ot cu
r
r
entl
y pr
ob
ab
le th
at th
e inv
e
s
tme
nt w
il
l re
al
is
e e
con
om
ic b
enef
i
t
s
,
man
ag
eme
nt ha
ve i
mp
air
e
d the e
ntir
e £14m v
al
ue of S
mit
hs M
ed
ic
al
’
s I
ve
nix
, In
c
. inv
e
s
tme
nt.
In th
e pr
i
or ye
ar t
he £18m of Me
dic
a
l se
pa
r
at
ion c
os
t
s r
ep
r
es
ente
d in
cr
em
ent
al co
s
t
s inc
ur
r
e
d by t
he Gr
o
up to s
ep
ar
ate Smit
hs M
edi
c
al
.
Th
is c
os
t ha
s be
en r
ep
or
ted a
s no
n-
he
ad
li
ne a
s the f
ul
l y
ear e
f
fe
c
t of th
e tr
ans
ac
t
ion o
n th
e Gr
ou
p's fina
nc
ial s
t
atem
ent
s is b
oth m
ater
ial
and n
on
-r
e
cur
rin
g. I
n the c
ur
r
ent y
e
ar s
ep
ar
a
tio
n and t
r
a
ns
a
c
tio
n cos
t
s i
ncu
r
r
ed o
n the s
a
le of t
he S
mit
hs M
edi
c
al bu
sin
e
s
s to ICU M
ed
ic
al
,
Inc h
av
e be
en in
cl
ude
d w
i
thin t
he ‘G
ain o
n s
ale of d
is
co
ntin
ue
d op
er
at
io
n’ calc
ul
at
ion (
s
e
e note 2
7
).
Th
e £
2
2
m for
ei
gn exc
han
ge l
os
s o
n inter
co
mp
any l
oa
n w
it
h pa
re
nt (
F
Y
2
0
21
: £5
0
m g
ain
) dir
e
c
tly o
f
f
s
et
s the f
or
ei
gn exc
han
ge g
ain in
cont
inui
ng o
pe
r
ati
on
s
. Th
is i
s excl
ude
d f
r
om he
a
dl
ine n
et f
ina
nce c
os
t
s as t
he
s
e f
air v
al
ue m
ov
em
ent
s ar
e n
on
-
op
er
at
io
nal i
n nat
ur
e and a
r
e
purely a consequence of the present
ational requirement
s for discontinued operations
.
4 Net f
ina
nce cos
t
s
Notes
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Interest receiv
able
14
9
In
te
rest pa
yable
:
– ba
nk l
oa
ns a
nd o
v
er
d
r
af
ts
, i
nc
lud
in
g as
s
o
ci
ate
d fe
e
s
(12
)
(7)
– oth
er l
oa
ns
(40)
(39)
– inte
re
s
t o
n le
as
e
s
(3)
(3)
Interest payable
(55)
(
49
)
Headline net
finance costs
(
41
)
(4
0)
Other f
inancing gains
/(
loss
es
):
– v
alu
at
io
n mo
v
eme
nt
s o
n f
air v
a
lu
e he
dg
e
d de
bt
(32)
22
– v
alu
at
io
n mo
v
eme
nt
s o
n f
air v
a
lu
e de
r
i
v
at
i
ve
s
33
(25)
– for
e
ign e
xch
an
g
e and i
ne
f
fe
c
t
i
ve
ne
s
s o
n net i
nv
e
s
tm
ent h
ed
ge
s
(2)
3
– re
tr
ansl
atio
n of fo
r
ei
gn cu
r
r
en
c
y b
an
k b
al
a
nce
s
(1)
(3)
– oth
er i
tem
s in
cl
ud
in
g co
unte
r
p
ar
t
y c
re
di
t r
i
sk a
dj
us
tm
ent
s and n
on
-h
ed
g
e acc
ou
nte
d de
r
i
v
at
i
ve
s
2
3
Other financing gains/(losses)
–
–
Non-headline finance
cost items:
Foreign exchange
gain on
intercompany loan
with discontinued operations
3
22
(50)
Unwind of discoun
t on provisions
3
(
3)
(2)
Fair v
alue g
ain o
n in
v
es
t
me
nt in e
ar
l
y s
ta
g
e bu
sin
e
s
s
14
1
–
Net in
terest income on retirement
benefit obligations
8
7
6
Non-headline finance cost
items
27
(
4
6)
Net finance
costs
(14
)
(86)
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
12
3
5 E
ar
nings
per sh
are
Ba
sic e
ar
nings p
er s
har
e a
re c
a
lcu
l
ated b
y di
v
i
din
g the p
r
of
it f
or th
e ye
ar at
t
r
ib
ut
ab
le to e
qui
t
y s
har
e
ho
lde
r
s of t
he C
omp
an
y b
y the a
ve
r
a
ge
numb
er o
f or
din
ar
y sh
ar
e
s in is
s
ue du
r
ing t
he y
ea
r
.
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Pr
o
fi
t at
t
r
ib
u
ta
bl
e to e
qui
t
y shar
e
ho
ld
er
s for th
e y
ea
r:
– continuing
11
15
6
– discontinued
1,
0
2
2
12
8
To
t
a
l
1,
0
3
3
284
Av
er
age n
umb
er o
f sh
ar
e
s in i
s
su
e dur
ing th
e y
ea
r (n
ote 2
4
)
3
8
6
,
67
8
,
2
11
396,350,5
8
6
St
atu
to
r
y ear
ning
s p
er sh
ar
e to
ta
l – b
as
ic
2
6
7.1
p
71.
7p
St
atu
to
r
y ear
ning
s p
er sh
ar
e to
ta
l – di
lu
ted
266.0p
7
1.
3
p
Statutor
y
ear
nings per share continuing operations – basic
2.8p
3
9.
4
p
St
atu
to
r
y ear
ning
s p
er sh
ar
e c
ont
in
uin
g op
e
r
at
io
ns – d
ilu
te
d
2.8p
3
9.1
p
Dilu
te
d ear
nings p
er s
har
e a
re c
a
lcu
l
ated b
y di
v
i
din
g th
e pr
of
it at
tr
ibu
t
abl
e to or
di
nar
y sh
ar
eh
ol
der
s by 3
8
8,
3
49
,
7
5
8 (
F
Y
2
0
21
: 39
8
,
576,5
0
2
)
or
din
ar
y sh
ar
e
s, b
ei
ng th
e av
er
age nu
mb
er of or
d
ina
r
y sha
re
s in i
s
su
e dur
i
ng th
e ye
ar a
dju
ste
d b
y the d
ilu
ti
v
e ef
f
ec
t of e
mpl
oy
e
e sha
r
e
sc
hem
e
s. N
o opt
ion
s (
F
Y
2
0
21
: nil
) wer
e exc
lud
ed f
r
om t
his c
a
lcu
l
ati
on be
c
au
se t
hei
r ef
f
ec
t w
a
s anti
-
dil
uti
v
e.
A re
co
nci
li
ati
on of s
t
atu
tor
y an
d he
ad
lin
e ea
r
nin
gs p
er s
har
e i
s as fo
ll
o
ws
:
Year e
n
de
d 31 J
u
ly 2
0
22
Year e
n
de
d 31 J
ul
y 2
0
2
1
£m
Basic EPS
(p)
Diluted EPS
(p)
£m
Basic EPS
(p)
Di
lu
te
d E
P
S
(p)
T
ota
l pr
o
fi
t at
tr
ibu
t
ab
le to e
qu
it
y sha
r
eh
ol
de
r
s of t
he P
a
r
ent C
om
p
an
y
1,
0
3
3
2
6
7.1
266.0
28
4
7
1.
7
71.
3
E
xc
lud
e: N
on
-h
ea
dl
i
ne i
tem
s (
not
e 3)
(
7
14
)
85
He
ad
li
ne e
ar
ning
s pe
r sh
ar
e
319
82.5
8
2
.1
3
69
9
3
.1
92
.6
Prof
it from continuing operations at
tribut
able to equity sharehol
der
s of
the Parent Company
11
2.8
2
.8
15
6
3
9.
4
3
9.1
E
xc
lud
e: N
on
-h
ea
dl
i
ne i
tem
s (
not
e 3)
259
79
Headline ear
nings per share – conti
nuing oper
ations
270
6
9.
8
6
9.
5
235
5
9.
3
5
9.
0
6 T
ax
ation
Th
is n
ote on
ly pr
o
v
id
es i
nfor
matio
n abo
ut c
or
p
or
ate inco
me t
a
xes u
nde
r IF
R
S
. Smi
th
s com
pa
nie
s o
pe
r
ate in o
v
er 5
0 co
untr
ies a
cr
os
s
the w
or
ld. T
he
y p
ay a
nd co
ll
ec
t m
an
y dif
fer
ent t
axe
s in a
dd
it
ion to c
or
p
or
ate inco
me t
axe
s in
cl
udi
ng: p
ay
r
ol
l t
axe
s; v
al
ue a
dde
d an
d s
ale
s
ta
xe
s; pr
op
er
t
y t
a
xes; p
r
od
uc
t-sp
ec
if
ic t
a
xes; a
nd en
v
ir
on
men
ta
l ta
xe
s. T
h
e co
st
s a
s
s
oc
iate
d w
ith t
he
s
e oth
er t
axe
s ar
e in
clu
de
d in p
r
ofi
t
befo
r
e ta
x
.
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
T
he t
a
xat
io
n ch
ar
g
e in t
he c
on
so
l
id
ate
d in
com
e s
t
atem
en
t for t
he y
e
ar c
om
pr
i
s
es
:
Continuing operation
s
– cur
ren
t inc
om
e t
ax c
ha
r
ge
68
71
– cur
ren
t ta
x a
dju
s
tm
ent
s i
n r
es
p
ec
t o
f pr
i
or p
er
iod
s
5
7
Current taxation
73
78
Deferr
ed taxation
17
5
T
otal taxation expense – continuing
oper
ations
90
83
Analy
se
d as:
Headline taxation expense
10
4
96
Non-headline taxation credit
(14
)
(13
)
T
otal
taxation expense in the
consolidated income
statement
90
83
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
T
ax o
n it
em
s ch
a
rg
e
d
/(c
re
di
te
d) t
o eq
ui
t
y
Deferred tax:
– retirement benefit schemes
–
6
– foreign exchange
–
(5
)
– s
hare-based
paymen
t
(1)
(1)
(1)
–
Th
e £
nil (
F
Y
2
0
21
: £6
m) c
har
g
e to eq
uit
y for r
eti
r
eme
nt be
nef
i
t
s re
l
ated to U
K r
etir
e
ment s
ch
em
es
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
12
4
Cur
rent
ta
xatio
n li
abili
ties
Current tax
£m
At 31 J
uly 2
0
2
0
(38)
Foreign exchange
gain
1
Charge to
income state
ment
(78)
Ta
x
p
a
i
d
96
At 31 J
uly 2
0
21
(19
)
Cur
rent t
a
x r
ec
ei
v
a
bl
e
75
Cur
rent t
a
x p
ay
a
bl
e w
it
hi
n on
e ye
ar
(8
9)
Co
r
p
or
atio
n ta
x p
ay
able a
f
te
r mo
r
e th
an o
ne y
ea
r
(5)
At 31 J
uly 2
0
21
(19
)
Foreign exchange
gain
(4)
Charge to
income state
ment
(73)
Ta
x
p
a
i
d
79
At 31 J
uly 2
0
2
2
(17
)
Cur
rent t
a
x r
ec
ei
v
a
bl
e
50
Cur
rent t
a
x p
ay
a
bl
e w
it
hi
n on
e ye
ar
(64
)
Co
r
p
or
atio
n ta
x p
ay
able a
f
te
r mo
r
e th
an o
ne y
ea
r
(3)
At 31 J
uly 2
0
2
2
(17
)
T
axat
io
n li
abi
li
tie
s in
cl
ude
d pr
o
v
is
io
ns of £
3
8m (F
Y
2
021
: £
3
4
m
), the m
ajo
r
it
y of w
hic
h r
el
ate
d to the r
isk of ch
al
len
ge to t
he ge
o
gr
a
phi
c
all
oc
at
io
n of pr
of
it
s by ta
x au
th
or
i
tie
s
.
In ad
di
tio
n to the r
isk
s pr
o
v
ide
d fo
r
, the Gr
ou
p fa
ce
s a v
ar
iet
y of ot
her t
a
x r
is
k
s, w
h
ic
h re
s
ult f
r
om op
er
ating i
n a com
pl
ex gl
ob
al en
v
ir
on
ment
,
inc
lud
ing t
he o
ngo
in
g ref
or
m o
f bot
h inter
n
ati
ona
l an
d dom
e
st
ic t
ax r
ule
s, n
e
w and o
ng
oin
g ta
x au
di
t
s in th
e Gr
ou
p’
s l
ar
ge
r ma
r
ket
s an
d the
cha
ll
eng
e to f
ulf
il o
ng
oin
g t
ax c
omp
li
anc
e f
il
ing a
nd tr
ans
fer p
r
ic
in
g obl
ig
ati
on
s gi
ve
n th
e sc
a
le an
d di
v
er
si
t
y of the G
ro
up’s globa
l op
er
a
tio
ns
.
Th
e Gr
o
up ant
ici
pate
s th
at a nu
mb
er of t
ax a
udi
t
s ar
e l
ikel
y to con
clu
de i
n the n
ex
t 1
2 to 24 mo
nth
s. D
ue to t
he un
cer
t
aint
y as
so
ci
ated w
i
th
suc
h ta
x i
tems
, i
t is p
os
si
bl
e that t
he c
onc
lus
io
n of op
en t
ax m
at
te
r
s ma
y r
es
ult i
n a fi
nal o
utc
ome t
hat v
a
r
ie
s si
gni
f
ic
ant
ly f
ro
m th
e amo
unt
s
not
ed above.
Reconciliati
on of th
e t
ax
char
ge
Th
e he
ad
li
ne t
ax c
ha
r
ge fo
r the y
e
ar of £104
m (
F
Y
2
0
21
: £96
m) r
ep
r
es
e
nted an e
f
fe
c
ti
v
e r
ate o
f 27
.6% (F
Y
2
0
21
: 2
8
.9%). T
h
e he
adl
in
e ef
fec
ti
v
e
ta
x r
ate f
or th
e tot
al Gr
o
up in
clu
din
g di
sc
onti
nue
d op
er
ation
s w
as 2
7
.2
% (
F
Y
2
0
21
: 27
.
1
%). T
he t
ax c
ha
r
ge on t
he p
ro
fi
t fo
r the y
e
ar fo
r
cont
inui
ng o
pe
r
ati
on
s w
as d
if
fere
nt f
ro
m th
e st
an
da
r
d r
ate of c
or
p
or
ation t
a
x in th
e UK of 19% (
F
Y
2
0
21
: 19
.0
%
). T
he d
if
fer
enc
e is r
ec
on
cile
d
as follows:
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Profit before taxation
103
240
Not
io
na
l ta
x
ati
on e
x
pe
ns
e at U
K co
r
po
r
a
te r
at
e of 19
.0% (
F
Y
2
0
2
1
: 19
.
0
%
)
20
46
Di
f
fe
r
ent t
a
x r
a
te
s on n
on
-U
K pr
o
fi
t
s an
d l
os
s
e
s
13
16
Non-deductible expenses and other
charges
11
30
T
ax c
re
d
it
s a
nd n
on
-t
a
xa
bl
e in
co
me
(6)
(8)
Non
-
he
a
dl
in
e UK de
fe
r
r
ed t
a
x as
s
et r
e
co
gn
it
io
n ad
ju
st
me
nt
5
(4)
Other adjustment
s to u
nre
cognised deferr
ed tax
10
(4)
Non
-t
a
x r
el
i
ev
a
bl
e lo
s
s on U
K pe
ns
io
ns s
c
he
me
s
41
–
T
ax on
Smiths Medical consolidation adjustments
2
8
Pr
ior year true-up
(6)
(1)
T
otal
taxation expense in the
consolidated income
statement
90
83
Compr
ising:
T
ax
ati
on o
n he
a
dl
in
e pr
of
i
t
10
4
96
Non-headline taxation items:
– T
ax o
n no
n-
he
a
dl
in
e lo
s
s
(19
)
(9)
– UK de
fer
re
d ta
x a
s
se
t r
ec
og
ni
ti
on a
dju
s
tm
ent
5
(4)
T
axation
on non-headline items
(14
)
(13
)
T
otal
taxation expense in the
consolidated income
statement
90
83
Th
e he
ad o
f
f
ic
e of Sm
ith
s Gr
o
up is d
omi
cil
ed i
n the U
K
; so t
he t
ax c
ha
r
ge ha
s be
en r
e
co
nci
le
d to UK ta
x r
ates
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
12
5
Defe
r
red taxation assets
/(liabi
lities)
Pr
ope
r
t
y, p
l
a
nt
,
equipment and
intangible
ass
ets
£m
Employment
benef
it
s
£m
Losse
s
carr
ied
for
war
d
£m
Prov
isions
£m
Other
£m
To
t
a
l
£m
At 31 J
uly 2
0
2
0
(
74
)
(66)
12
8
86
1
75
Reallocations
11
(1)
(14
)
2
2
–
Charge to income statement
– continuing
oper
ations
4
(
31)
27
(5)
–
(5)
Cr
ed
it t
o eq
ui
t
y
–
(6)
5
–
–
(1)
Foreign exchange
r
ate
movements
3
(1)
(2)
(5)
–
(5)
At 31 J
uly 2
0
21
(5
6)
(10
5
)
14
4
78
3
64
Def
er
r
e
d t
ax a
s
s
et
s
2
(
113
)
12
6
62
15
92
Deferr
ed tax liabilitie
s
(58)
8
18
16
(
12
)
(28)
At 31 J
uly 2
0
21
(5
6)
(10
5
)
14
4
78
3
64
Reallocations
(15
)
1
9
1
4
–
Charge to income statement
– continuing
oper
ations
4
50
(5
4)
(10
)
(7
)
(
17
)
Cr
ed
it t
o eq
ui
t
y
–
3
–
–
(4)
(1)
Foreign exchange
r
ate
movements
(9)
–
4
10
–
5
At 31 J
uly 2
0
2
2
(
76)
(
51)
10
3
79
(4)
51
Def
er
r
e
d t
ax a
s
s
et
s
(1)
(56)
76
65
11
95
Deferr
ed tax liabilitie
s
(75)
5
27
14
(
15
)
(4
4)
At 31 J
uly 2
0
2
2
(
76)
(
51)
10
3
79
(4)
51
Real
lo
c
ati
on
s in F
Y
2
0
2
2 in
clu
de £10m w
he
r
e at
tr
i
bu
tes u
s
ed to sh
el
ter P
DC
F as
s
es
s
ment
s have b
e
en r
ea
ll
oc
ate
d fr
o
m lo
ss
e
s to c
ap
it
al
all
ow
ance
s
, fol
lo
w
in
g the c
on
clu
sio
n of th
e Gr
o
up's PD
CF au
dit w
i
th U
K HMR
C co
ve
r
in
g F
Y
2
01
5 to F
Y
2
0
2
0.
Of t
he a
mou
nt
s inc
lu
de
d w
it
hin 'O
t
her
' in t
he t
ab
le ab
o
ve a
s at 31 July 2
02
2
, li
abi
li
ti
es r
e
l
atin
g to t
ax o
n unr
em
it
te
d ea
r
nin
gs w
er
e £19m
(F
Y
2
0
21: £
14m
). Th
e ag
gr
eg
ate am
ount o
f temp
or
ar
y dif
f
er
en
ce
s as
s
oc
iate
d w
it
h inv
e
s
tme
nt
s in su
bsi
dia
r
ie
s fo
r w
hic
h defe
r
r
ed t
a
x li
ab
ili
ti
es
hav
e n
ot be
en r
e
co
gnis
e
d w
as i
mmate
r
ia
l
.
Th
e def
er
r
e
d ta
x a
ss
et r
el
ating to l
os
s
es h
as b
ee
n r
ec
ogn
is
ed o
n th
e ba
sis o
f st
r
on
g ev
i
den
ce of f
u
tur
e t
ax
ab
le pr
o
fi
t
s ag
ain
s
t w
hic
h the
unu
til
is
e
d ta
x lo
s
se
s c
an b
e r
el
ie
ve
d or b
e
ca
us
e it i
s pr
o
ba
ble t
hat t
he
y w
ill b
e r
ec
ov
er
e
d ag
ain
st t
he r
e
ve
r
s
al of d
efe
r
r
ed t
ax l
i
abil
i
tie
s
.
Defe
r
r
ed t
a
x r
el
ati
ng to p
ro
v
i
sio
ns in
cl
ude
s £
5
7m (F
Y
2
0
21
: £
5
4
m
) re
l
ati
ng to Jo
hn Cr
ane In
c. l
i
tig
ati
on pr
o
v
is
ion
, an
d £1
2m (
F
Y
2
0
21
: £1
1m)
rel
ating t
o Titeflex Corpor
ation litigation provision. S
ee note
2
3 for additional
information on
pro
visions.
Unrecog
nised def
erred t
ax
Th
e Gr
o
up ha
s unr
e
co
gni
se
d de
fer
r
e
d ta
x r
el
at
in
g to los
s
e
s am
ount
ing to £
3
35
m (
F
Y
2
0
21
: £1
0
7m).
Th
e ex
pi
r
y date of op
er
ating l
os
s
e
s c
ar
r
i
ed fo
r
w
ar
d is d
ep
en
dent u
po
n the l
aw of the v
ari
ou
s ter
r
i
tor
i
e
s in w
hic
h th
e los
s
e
s ar
i
se
. A su
mma
r
y
of ex
pir
y d
ates f
or th
e unr
e
co
gni
se
d de
fer
r
e
d ta
x on l
os
s
e
s is s
et ou
t be
lo
w:
2022
£m
Expir
y of
losses
20
21
£m
E
x
pi
r
y of
losses
Restr
icted loss
es – A
sia
–
n
/a
30
202
2-
2
027
Unres
tric
ted loss
es – operating loss
es
335
No expir
y
77
No expir
y
T
ot
al u
nr
e
co
gn
is
e
d de
fe
r
re
d t
a
x on l
os
s
e
s
335
10
7
Unr
e
cog
nis
e
d defe
r
r
ed t
a
x r
el
ati
ng to l
os
s
es h
as i
ncr
e
as
e
d by £
2
2
8m (F
Y
2
021
: inc
re
a
se
d by £13m
). Cha
nge
s to u
nr
ec
ogn
is
ed l
os
s
e
s inc
lud
e
an inc
r
ea
se o
f £
2
26
m, m
ain
ly r
el
ate
d to UK d
efer
r
e
d t
ax o
n los
s
e
s th
at we
r
e bei
ng r
e
cog
nis
e
d to of
f
s
et th
e def
er
r
ed t
a
x l
iab
ili
t
y rel
ate
d to th
e
T
I Pen
sio
n su
r
plu
s
, no
w w
r
i
t
ten of
f fol
lo
w
ing t
he b
ul
k annu
it
y bu
y
-in w
i
th Roth
e
s
ay L
i
fe pl
c, ot
he
r inc
re
as
e
s of £
3
9m a
nd a r
e
duc
t
ion o
f £
37m
re
l
ated to t
he s
a
le of S
mit
hs M
edi
c
al
.
Sale of Smit
hs Medical
Th
e s
al
e of 100
% o
f the s
har
e c
ap
it
al o
f the U
K Smi
th
s Me
dic
a
l ho
ldi
ng co
mp
an
y com
ple
ted o
n the 6 J
anu
ar
y 2
0
2
2
. T
he p
r
of
it on s
a
le w
a
s
exempt from tax under the Substantial Shareho
lding Exemption.
Developm
ents in the Grou
p tax position
In De
ce
mbe
r 2
0
21, the Or
ga
nis
a
tio
n for Ec
on
omi
c Co
-
o
per
atio
n and D
e
ve
lop
me
nt (
'OEC
D'
) pub
li
sh
ed r
u
le
s r
el
at
ing to g
lob
al m
inim
um
ta
xa
tio
n – the s
o
-
c
al
le
d Pi
ll
ar 2 r
ule
s, s
ch
ed
ule
d to ap
ply f
r
om 2
02
3
, r
eg
ar
din
g th
e fu
tu
re t
a
xa
tio
n of l
ar
g
e mul
tin
atio
na
l
s su
ch a
s Smi
th
s
.
Th
e Gr
o
up w
il
l cont
inu
e to mo
ni
tor th
e de
ve
lop
me
nt an
d fu
tu
re i
mpl
em
ent
atio
n of th
e
se r
ules
. H
ow
e
ver
, at thi
s tim
e an
d as c
ur
r
ent
ly dr
af
ted
,
the
y ar
e n
ot ex
pe
c
ted to h
av
e a mate
r
ia
l imp
ac
t o
n th
e Gr
oup
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
12
6
7 Empl
oyees
Year e
n
de
d 31 J
u
ly 2
0
22
Year e
n
de
d 31 J
ul
y 2
0
2
1
Continuing
operations
£m
Discontinued
operations
£m
To
t
a
l
£m
Continuing
operations
£m
Discontinued
operations
£m
To
t
a
l
£m
St
af
f c
os
t
s d
ur
i
ng t
he p
e
r
io
d
Wages and sal
ar
ies
70
0
91
791
62
7
23
4
8
61
Social
securit
y
81
9
90
85
22
10
7
Share-based payment (not
e 9)
13
2
15
13
1
14
Pen
si
on c
os
t
s (
in
cl
ud
in
g de
fi
ne
d co
ntr
ibu
tio
n s
ch
em
e
s) (
n
ote 8
)
29
5
34
26
11
37
823
10
7
930
7
51
268
1,
019
Th
e av
er
age n
umb
er of p
er
s
on
s em
plo
y
ed
, r
oun
de
d to th
e ne
ar
es
t 5
0 e
mp
lo
ye
es
, w
a
s:
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
Y
ear ended
31 Ju
l
y 2
0
21
John Crane
6,05
0
5
,9
5
0
Smiths Detection
3
,1
0
0
3,
000
F
l
e
x
-Te
k
3,30
0
3,000
Smiths Interconnect
2,5
0
0
2,30
0
Cor
por
ate (including central
/shared IT ser
vice
s)
300
30
0
Continuing operation
s
1
5,250
14
,
5
5
0
Di
sc
ont
in
ue
d op
er
atio
n
s – Sm
it
hs M
ed
ic
al (
i
n pe
r
io
d to 6 J
an
uar
y 2
0
2
2
)
6
,7
0
0
7,
5
0
0
To
t
a
l
21
,9
5
0
22,050
Key manag
ement
Th
e key m
an
ag
eme
nt of th
e Gr
ou
p com
pr
i
se
s S
mi
ths G
r
oup p
lc B
oa
r
d Dir
e
c
tor
s a
nd E
xecu
ti
v
e Co
mmi
t
te
e mem
be
r
s
. T
hei
r agg
r
eg
ate
com
pe
ns
at
ion i
s sh
ow
n b
el
ow. D
eta
il
s o
f Dir
e
c
tor
s’ r
emun
er
ation a
re c
ont
ain
ed i
n th
e re
po
r
t of the Rem
une
r
at
ion & P
eo
pl
e Co
mmi
t
te
e on
pa
ge
s 7
5 to 8
8
.
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Key management
compens
ation
Sal
ar
ies and shor
t-term employee benefit
s
10.
3
12
.
8
Cost of retirement benefit
s
0.7
0
.9
Co
s
t of sh
ar
e
-
ba
s
ed i
nc
ent
i
ve p
l
an
s
4
.7
3
.9
No me
mb
er of ke
y man
ag
eme
nt ha
d an
y mater
ial inter
e
s
t dur
i
ng t
he p
er
io
d in a c
ontr
ac
t of si
gni
fi
c
anc
e (ot
her t
han a s
er
v
i
ce co
ntr
a
c
t
or a qu
al
if
y
ing t
hir
d
-p
ar
t
y i
nde
mni
t
y pro
v
is
io
n) w
i
th th
e C
omp
an
y or an
y of i
t
s sub
si
diar
ies
.
Opt
ion
s an
d aw
a
r
ds he
ld at t
he e
nd of t
he p
er
i
od b
y key m
ana
ge
men
t in r
es
pe
c
t of th
e Co
mp
an
y’s shar
e
-b
a
se
d in
cent
i
ve p
l
an
s we
re:
Year e
n
de
d 31 J
u
ly 2
0
22
Ye
ar e
nd
e
d 31 J
ul
y 2
0
21
Number of
instr
uments
’000
Weighted
average
exerc
is
e
price
Nu
mb
e
r of
instr
uments
’000
Weighted
average
exercise
price
SEP
–
16
9
LT
I
P
1,
411
1,
6
4
5
Restr
icted stock
8
82
S
AY
E
16
£
11.
4
3
11
£
10
.11
Re
l
at
ed par
t
y trans
ac
tions
The only rel
ated par
t
y tr
ans
ac
tions in F
Y20
2
2 were key management compensation (F
Y2
0
21
:
key management compensation
).
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
12
7
8 Retirement benefi
t
s
Smi
th
s pr
o
v
ide
s r
et
ir
eme
nt be
nef
i
t
s to emp
lo
ye
e
s in a num
be
r of co
untr
i
e
s. T
h
is in
clu
de
s de
fi
ne
d be
nef
it a
nd d
ef
ine
d co
ntr
ib
ut
ion p
l
an
s an
d,
main
ly in t
he Un
ite
d K
in
gd
om (
UK
) and U
nite
d St
ate
s of A
m
er
i
c
a (U
S), p
os
t-r
eti
re
men
t he
alth
c
ar
e.
Defin
ed co
ntr
ibution
pl
an
s
Th
e Gr
o
up op
er
ates de
fi
ne
d cont
r
ib
uti
on p
l
an
s acr
o
s
s man
y co
untr
i
es
. In t
he UK a d
ef
in
ed co
ntr
i
bu
tio
n pl
a
n has b
e
en of
fer
ed si
nce t
he
clo
sur
e of t
he U
K def
in
ed b
ene
fi
t pe
ns
ion p
l
an
s
. In th
e US a 4
01
(k
) defi
ne
d cont
r
ib
uti
on p
l
an op
er
ates
. T
he tot
al e
xp
en
s
e re
co
gni
s
ed in t
he
con
s
ol
ida
ted in
co
me s
ta
teme
nt in r
e
spe
c
t of a
ll th
e
se p
l
an
s w
as £
3
4m (
F
Y
2
0
21
: £
3
6m
).
Defined be
nefit and post
-ret
iremen
t health
care pl
ans
Th
e pr
incip
al d
ef
ine
d be
nef
i
t pe
nsi
on p
l
an
s ar
e in th
e UK an
d in th
e US a
nd t
he
se h
av
e b
een c
lo
se
d s
o th
at no f
ut
ur
e b
enef
i
t
s ar
e ac
cr
u
ed
.
For a
ll s
ch
eme
s
, p
en
sio
n cos
t
s a
re a
s
s
es
s
ed i
n acc
or
da
nce w
i
th t
he a
d
v
ice of i
nd
ep
end
ent
, pr
of
es
s
ion
al
ly qu
al
if
ie
d ac
t
uar
ies
.
Th
e
se v
a
lua
tio
ns h
av
e be
en u
pd
ated b
y in
dep
en
de
nt qua
li
f
ie
d ac
tu
ar
i
es i
n or
de
r to as
s
e
s
s the l
ia
bil
i
tie
s of t
he s
che
me
s a
s at 31 July 2
0
2
2.
Co
ntr
ib
ut
ion
s to th
e sc
he
me
s ar
e ma
de o
n th
e ad
v
ic
e of th
e ac
t
uar
i
es
, i
n acc
or
da
nce w
i
th l
oc
al f
un
din
g r
eq
uir
em
ent
s
.
The changes in the present value of the net pension asset in the period were:
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
At beginning of
per
iod
413
372
Foreign exchange
r
ate
movements
-
5
Curr
ent ser
v
ice cost
(2)
(2)
Scheme administr
ation cost
s
(4)
(5)
Pas
t ser
v
ice cost, cur
t
ailments
, settlement
s – continui
ng oper
ations
(
2
14
)
(6)
Set
tlements – discontinued oper
ations
(3)
–
Finance income – retirement benefits
7
6
Contribu
tions by employer
9
30
Ac
tuar
ial gain
3
13
Reti
r
em
ent b
en
ef
it o
bl
i
gat
io
ns d
is
po
s
ed o
f w
it
h Sm
it
hs M
e
dic
a
l (
note 2
7
)
5
–
Unrecognised asset
s due t
o surplus restr
iction
(
20)
–
Net retirement
benefit asset
194
413
Th
e £
4
13m net r
eti
re
men
t ben
ef
it a
s
se
t for F
Y
2
0
21 i
ncl
ud
ed £
5
m of p
ens
io
n obl
ig
ati
on
s dis
cl
os
e
d w
ith
in l
iab
il
iti
e
s hel
d fo
r s
ale
.
UK pension
scheme
s
Smi
th
s f
und
ed U
K pen
si
on s
ch
eme
s ar
e s
ubj
ec
t to a s
t
atu
tor
y f
un
din
g obj
ec
t
i
ve
, as s
et ou
t in UK p
en
si
on le
gi
sl
at
ion
. S
ch
eme t
r
us
te
e
s ne
ed
to obt
ain r
e
gul
a
r ac
t
uar
i
al v
al
uat
ion
s to as
s
e
s
s the s
c
hem
e ag
ain
st t
hi
s fu
ndi
ng ob
je
c
ti
v
e. T
h
e tr
u
ste
e
s and s
po
ns
or
ing co
mp
anie
s n
ee
d to
agr
e
e fu
ndi
ng p
l
an
s to imp
ro
v
e the p
os
it
ion o
f a sc
hem
e w
he
n it i
s be
lo
w the a
cce
pt
abl
e f
und
ing l
ev
el
.
Th
e UK P
ens
io
ns Re
gul
ato
r ha
s ex
tensi
v
e po
w
er
s to p
r
otec
t t
he b
ene
fi
t
s of m
emb
er
s
, p
r
omo
te go
od a
dmin
is
tr
ation a
nd r
e
duc
e the r
i
sk of
sit
uat
ion
s ar
i
sin
g w
hi
ch ma
y r
eq
uir
e co
mp
ens
a
tio
n to be p
ai
d fr
o
m the P
en
sio
n Pr
ote
c
ti
on Fu
nd. T
h
e
se i
ncl
ud
e imp
os
ing a s
ch
ed
ule o
f
cont
r
ib
uti
on
s or th
e c
alc
ul
at
ion o
f the te
ch
nic
al p
r
ov
i
si
ons
, w
h
er
e a tr
uste
e an
d com
pa
ny f
ail to a
gr
e
e app
r
opr
iate ca
lcu
l
ati
on
s.
Smith
s Ind
us
tr
ie
s Pen
sio
n Sc
hem
e ('
SIP
S'
)
Th
is s
ch
em
e w
as c
los
e
d to fu
tu
re a
cc
r
ual e
f
fe
c
ti
v
e 1 No
ve
mb
er 2
0
0
9
. S
IP
S p
r
ov
i
de
s in
de
x-l
inke
d (to ap
pl
ic
ab
le c
ap
s
) pen
si
on b
ene
fi
t
s
ba
se
d on f
in
al e
ar
n
ing
s at date of c
lo
sur
e
. SIP
S is go
ve
r
ne
d b
y a cor
p
or
ate tr
us
te
e (
S.
I. P
ens
io
n T
ru
s
tee
s L
imi
ted
, a w
ho
ll
y ow
n
ed
sub
sid
iar
y of S
mi
ths G
r
oup p
lc
). T
he b
o
ar
d of tr
uste
e dir
e
c
tor
s c
ur
r
en
tly c
omp
r
is
e
s fou
r Co
mp
an
y-
no
min
ated t
r
us
te
es a
nd f
our m
emb
er
-
nom
ina
ted tr
uste
e
s, w
i
th a
n ind
ep
en
dent c
hai
r
ma
n se
le
c
ted b
y Sm
ith
s Gr
o
up pl
c. Trus
te
e dir
e
c
tor
s a
re r
e
sp
on
sib
le fo
r th
e man
ag
eme
nt,
adm
ini
st
r
at
ion
, f
und
ing a
nd i
nv
es
tm
ent s
tr
ateg
y of t
he s
ch
eme
.
Th
e mo
s
t re
ce
nt ac
t
uar
i
al v
al
uat
ion o
f thi
s sc
hem
e ha
s be
en p
er
for
med us
ing t
he P
r
oj
ec
te
d Uni
t Met
ho
d as at 31 Ma
r
ch 2
0
2
0. T
h
e v
al
uati
on
sho
w
ed a s
ur
p
lus of £
34
m o
n the T
ec
hni
c
al P
r
ov
i
sio
ns f
un
din
g ba
si
s at th
e v
alu
ati
on date a
nd t
he f
un
din
g po
sit
io
n has i
mp
ro
v
ed si
nce t
he
n.
A
s p
ar
t of th
e v
alu
ati
on ag
r
eem
ent
, no c
ont
r
ibu
ti
on
s ar
e cur
rent
ly be
ing p
ai
d to SI
P
S an
d th
e Gr
ou
p's cur
r
ent ex
p
ec
t
ati
on i
s that t
he
s
e
cont
r
ib
uti
on
s w
ill n
ot r
ec
om
men
ce (
alt
ho
ugh t
her
e a
re c
ir
cum
s
t
anc
es r
el
ating to th
e S
ch
em
e’
s fun
di
ng le
v
el in w
hi
ch c
ontr
i
bu
tio
ns c
oul
d be
due to S
IP
S
).
Th
e dur
atio
n of SIP
S lia
bil
i
tie
s is a
r
oun
d 2
0 ye
ar
s (F
Y
2
0
21
: 2
3 ye
ar
s) for a
c
ti
v
e defe
r
r
ed m
em
ber
s, 2
0 y
ea
r
s (F
Y
2
021
: 2
2 ye
ar
s
) fo
r def
er
r
ed
mem
be
r
s an
d 1
1 year
s (F
Y
2
0
21
: 1
2 ye
ar
s
) fo
r pe
ns
ion
er
s a
nd d
ep
end
ant
s
.
Und
er th
e go
ve
r
ni
ng do
c
ume
ntat
io
n of SIP
S, an
y fu
tu
re s
ur
p
lus w
o
uld b
e r
etu
r
na
ble to S
mi
ths G
r
oup p
lc b
y r
ef
und
, as
s
umin
g gr
adual
set
tlement of the
liabili
ties over the lifetime of the scheme.
In SIP
S, as p
ar
t of on
go
ing d
at
a cl
ean
sin
g w
or
k b
ein
g un
der
t
aken to pr
e
pa
re t
he s
ch
em
e for a p
otent
ial f
ul
l bu
y
-
ou
t in th
e f
ut
ur
e, it h
as
be
en di
sc
ov
er
e
d tha
t the m
eth
od u
se
d in t
he e
ar
ly 199
0
s to e
qu
al
is
e re
tir
em
ent a
ge
s be
t
w
e
en me
n and w
o
men i
n t
w
o of i
t
s sm
all
er b
ene
fi
t
s
se
c
ti
ons w
as inco
r
r
ec
t
. A
n a
dd
it
ion
al l
iab
il
it
y of £1
9m ha
s be
en r
e
co
gni
se
d as a p
a
st s
er
v
i
ce co
st to r
ef
l
ec
t th
e co
r
r
ec
t
ion o
f thi
s is
su
e.
A w
ide
r r
ev
i
ew i
s bei
ng un
de
r
taken to d
eter
m
ine i
f e
qual
i
s
atio
n w
as u
nd
er
take
n cor
rec
t
ly in ot
he
r se
c
ti
on
s of the S
c
he
me. S
ho
ul
d any i
s
su
es
ar
is
e f
r
om th
is r
e
v
ie
w, any a
ddi
ti
ona
l l
iab
ili
t
y is ex
pe
c
ted to b
e acc
oun
ted fo
r at th
e po
int th
e le
gal i
nv
es
t
igat
io
ns ar
e c
omp
lete
d an
d the
r
e is
cl
ar
it
y o
n the l
eg
al
ly ef
f
ec
t
i
ve d
ates t
hat e
qu
al
is
at
ion o
f ret
ir
em
ent a
ge
s w
as i
mpl
em
ented i
n r
es
pe
c
ti
v
e se
c
ti
on
s.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
12
8
TI Group Pension Scheme ('T
IGP
S')
Th
is s
ch
em
e w
as c
los
e
d to fu
tu
re a
cc
r
ual e
f
fe
c
ti
v
e 1 No
ve
mb
er 2
0
0
9
. T
I
GP
S pro
v
id
es i
nd
ex-l
in
ked (
to app
li
c
abl
e c
aps
) p
en
sio
n be
nef
it
s b
a
se
d on
fi
nal e
ar
n
ing
s at th
e date of c
lo
sur
e
. T
IGP
S is go
ve
r
ne
d b
y a cor
p
or
ate tr
us
te
e (
TI Pe
ns
ion T
r
u
ste
e L
imi
te
d, an i
nd
epe
nd
ent co
mp
an
y
). Th
e bo
ar
d
of tr
u
s
tee di
re
c
tor
s comp
r
is
e
s fou
r Co
mp
an
y-
no
min
ated t
r
us
te
es a
nd f
our m
emb
er
-
nom
inate
d tr
uste
e
s, w
i
th a
n ind
ep
en
dent t
r
us
te
e dir
e
c
tor
se
le
c
ted b
y th
e tr
u
ste
e. T
h
e tr
u
s
tee i
s re
sp
on
si
ble f
or th
e ma
nag
em
ent
, adm
ini
st
r
at
io
n, f
un
din
g and i
nv
e
st
ment s
t
r
ate
g
y of th
e sc
he
me.
In Jun
e 2
0
2
2 th
e T
IGP
S tr
us
te
e com
pl
eted a d
ea
l to se
cu
re i
t
s r
em
aini
ng un
ins
ur
e
d pen
si
on l
iab
il
it
ie
s
, by w
a
y of a bu
lk a
nnu
it
y bu
y-
in w
i
th
Rothe
s
a
y L
ife p
lc
. T
hi
s me
ans a
ll of t
he s
ch
em
e’
s lia
bil
i
tie
s ar
e in
su
r
ed v
ia s
e
ve
n bu
y
-i
n po
li
cie
s
. T
he f
in
al bu
y
-
in ha
s be
en s
e
cur
e
d w
it
h an
intent
ion to f
ul
ly b
u
y-
o
ut t
he S
ch
em
e as s
oo
n as r
e
as
on
abl
y pr
act
ic
al a
nd w
i
thin a p
er
iod of fo
ur y
ea
r
s
. Co
ns
eq
ue
ntly, the i
nco
me s
t
atem
ent
re
co
gni
s
es a s
et
t
lem
ent l
os
s of £1
71m in rel
at
ion to t
he b
u
y-
in. I
n ter
m
s agr
e
ed b
et
we
en th
e Gr
ou
p and t
he T
I
GP
S t
r
us
te
e pr
i
or to t
he tr
ans
ac
t
io
n,
w
hen T
I
GP
S conv
er
t
s al
l of it
s b
u
y-
in p
ol
ic
ie
s to bu
y
-
ou
t po
li
cie
s an
d su
bs
eq
uent
ly w
in
ds
-u
p, the t
r
us
te
e is ex
p
ec
te
d to us
e an
y sur
plus r
em
aini
ng
,
af
te
r the c
os
t
s of b
u
y
ing
-
ou
t an
d w
ind
ing
-u
p the s
ch
em
e ha
ve b
ee
n met
, to imp
r
ov
e me
mb
er b
enef
i
t
s
. A pa
s
t se
r
vi
ce co
s
t of £
2
4
m has b
e
en
re
co
gni
s
ed fo
r thi
s in th
e inc
om
e st
ate
ment
. T
h
e Gr
ou
p ha
s no ex
p
ec
t
ati
on of r
e
cei
v
i
ng a r
ef
und f
r
om t
he s
ch
eme a
nd h
as p
l
ace
d an e
co
no
mic
ben
ef
it v
a
lue o
f zer
o on t
he T
I
GP
S s
ur
p
lus f
r
om 10 Jun
e 2
0
2
2
.
A
s T
I
GP
S cur
r
entl
y r
eta
ins t
he l
eg
al ob
li
gat
ion to p
a
y all s
c
hem
e be
nef
i
t
s, T
I
GP
S liab
il
it
ie
s r
ema
in p
ar
t of the r
et
ir
eme
nt be
nef
i
t obl
i
gati
on
s on th
e
ba
l
anc
e she
et al
on
gsi
de t
he co
r
r
e
spo
nd
ing b
u
y
-in a
s
set
s. T
he
s
e li
abi
li
tie
s a
nd a
ss
et
s w
i
ll b
e de
-r
e
co
gni
se
d at th
e po
int th
e bu
y
-i
n po
li
cie
s ar
e
con
ve
r
ted to bu
y
-
ou
t
s an
d the l
eg
al ob
li
gat
io
n for p
ay
m
ent of b
en
ef
it
s i
s tr
a
ns
fe
r
r
ed to t
he r
ele
v
a
nt ins
ur
er
s
.
Th
e mo
s
t re
ce
nt ac
t
uar
i
al v
al
uat
ion o
f thi
s sc
hem
e ha
s be
en p
er
for
med us
ing t
he P
r
oj
ec
te
d Uni
t Met
ho
d as at 5 A
pr
il 2
0
2
0. T
h
e v
alu
ati
on sh
o
we
d
a sur
p
lus o
f £
2
2m o
n th
e T
echn
ic
al P
r
ov
i
sio
ns f
un
din
g b
asi
s at th
e v
alu
ati
on d
ate and t
he f
un
din
g po
si
tio
n ha
s imp
r
ov
ed s
inc
e the
n. G
i
ve
n T
IGP
S’s
cir
cu
ms
t
anc
es
, t
he Gr
o
up's cur
r
ent e
xp
e
c
tat
io
n is th
at no f
ur
th
er co
ntr
i
bu
tio
ns to T
I
GP
S w
i
ll b
e r
eq
uir
ed
.
Th
e dur
atio
n of th
e T
IGP
S lia
bil
it
ie
s is a
ro
un
d 21 ye
ar
s (
F
Y
2
0
21: 23 y
ear
s) for a
c
ti
v
e def
er
r
ed m
em
be
r
s
, 19 year
s (
F
Y
2
0
21
: 21 ye
ar
s) for d
efer
red
mem
be
r
s an
d 10 year
s (F
Y
2
0
21
: 1
1 year
s) for p
en
sio
ne
r
s an
d dep
en
da
nt
s.
US pensio
n plans
Th
e v
al
uati
on
s of th
e pr
i
nci
pa
l US p
en
sio
n an
d po
st-r
et
ir
eme
nt he
alt
hc
ar
e p
l
an
s we
re p
er
for
med us
in
g cen
su
s dat
a at 1 Ja
nua
r
y 2
0
2
2.
Th
e p
ens
io
n pl
an
s w
er
e cl
os
ed w
i
th ef
fec
t f
r
om 3
0 A
p
r
il 2
0
0
9 and be
nef
i
t
s we
re c
a
lcu
l
ated a
s at th
at date a
nd a
re n
ot r
ev
alue
d. G
ov
er
n
anc
e of
the U
S pe
ns
ion p
l
an
s is o
ve
r
s
ee
n by a S
et
tlor C
om
mit
tee app
oi
nted b
y Sm
ith
s Gr
o
up S
er
v
ic
es C
o
r
p, a w
ho
lly o
w
n
ed s
ubs
idi
ar
y of th
e Gr
ou
p.
Th
e dur
atio
n of th
e li
abi
li
tie
s fo
r th
e l
ar
ge
s
t U
S pl
an i
s ar
ou
nd 16 yea
r
s (F
Y
2
021
: 18 year
s) for a
c
ti
v
e defe
r
r
ed m
em
ber
s, 15 year
s (F
Y
2
0
21
: 18
ye
ar
s
) fo
r defe
r
r
ed m
emb
er
s and 10 yea
r
s (
F
Y
2
0
21
: 1
2 ye
ar
s
) fo
r pen
si
on
er
s a
nd de
pe
nd
ant
s
.
Risk manag
ement
In r
es
pe
c
t of un
ins
ur
ed l
ia
bil
i
tie
s
, th
e pe
nsi
on
s sc
he
me
s ar
e ex
p
os
ed to r
i
sk
s th
at:
–
inve
s
tme
nt r
etur
ns ar
e be
lo
w ex
pe
c
t
atio
ns
, l
ea
v
ing t
he s
ch
eme
s w
i
th in
su
f
f
ic
ien
t as
s
et
s in f
ut
ur
e to p
ay al
l th
eir p
en
sio
n ob
li
gat
ion
s;
–
membe
r
s an
d de
pe
nda
nt
s l
i
ve l
ong
er t
han e
xp
ec
te
d, i
ncr
e
as
ing t
he v
a
lue of t
he p
en
sio
ns w
h
ich t
he s
ch
eme
s h
av
e to pa
y;
–
infl
ati
on r
ates ar
e hi
ghe
r th
an ex
pe
c
te
d, c
au
sin
g am
ount
s p
a
y
abl
e und
er in
de
x-l
inke
d pe
ns
ion
s to b
e high
er t
han e
xp
ec
te
d; an
d
–
incr
ea
se
d co
ntr
ib
ut
io
ns ar
e r
e
quir
e
d to me
et f
un
din
g ta
r
get
s i
f lo
we
r inter
e
s
t r
ate
s in
cr
e
as
e the c
ur
r
e
nt v
alu
e of l
iab
il
iti
e
s.
Th
e
se r
isk
s ar
e ma
nag
ed s
e
pa
r
atel
y for e
ac
h pe
ns
ion s
ch
em
e. Ho
w
ev
er
, the G
r
oup h
as a
do
pted a c
omm
on a
pp
ro
ac
h of cl
os
ing d
ef
ine
d
ben
ef
it s
ch
em
es to c
a
p mem
be
r
s’ enti
tle
ment
s and of su
pp
or
tin
g tr
u
ste
e
s in ad
op
tin
g inv
e
st
me
nt st
r
ate
gi
es w
h
ich a
im to he
dg
e th
e v
alu
e of
as
s
et
s ag
ain
s
t cha
ng
es i
n the v
a
lue o
f li
abi
li
ti
es c
a
us
ed b
y ch
an
ge
s in inte
re
s
t an
d inf
l
ati
on r
ates
.
Ac
r
os
s SI
P
S an
d T
IG
P
S
, app
r
oxi
matel
y 6
0
% of al
l l
iab
il
iti
es a
r
e no
w de
-r
isked t
hr
ou
gh 1
1 bul
k ann
uit
ie
s.
TIGP
S
T
IGP
S has c
ov
er
ed r
o
ugh
ly 10
0
% of l
iab
il
iti
e
s w
ith m
atch
ing a
nnui
ti
es
, e
li
min
atin
g inv
e
s
tme
nt r
etur
n, lon
ge
v
it
y, infl
ati
on a
nd f
un
din
g r
is
ks i
n
resp
ec
t of those liabilities
.
SIP
S
SIP
S has co
v
er
ed r
o
ugh
ly 3
0
% of l
ia
bil
it
ie
s w
it
h matc
hin
g ann
uit
ie
s
, el
imin
ati
ng in
ve
s
tm
ent r
et
ur
n
, lon
ge
v
it
y, infl
ati
on a
nd f
un
din
g r
isk
s i
n
re
sp
e
c
t of th
os
e li
ab
ili
ti
es
. I
t ha
s al
s
o a
dop
ted a L
i
abil
i
t
y D
r
i
v
en In
ve
s
tm
ent (
L
DI
) s
tr
ate
g
y to he
d
ge inte
re
s
t an
d inf
l
ati
on r
i
sk
s of t
he s
che
me’s
unin
sur
e
d l
iab
il
iti
e
s by in
v
es
tm
ent i
n gilt
s to
ge
the
r w
it
h the u
se o
f gilt r
e
pur
ch
as
e ar
r
ang
eme
nt
s
, tota
l r
etur
n sw
a
ps
, inf
l
ati
on s
w
a
ps an
d
inter
e
s
t r
ate s
w
a
ps
. T
he s
tr
ateg
y al
so t
akes i
nto acc
ount t
he s
ch
em
e’
s cor
p
or
ate bon
d inv
e
s
tme
nt
s
.
The critical estimates and principal assumptions used in updating the valuations are set out below:
2022
UK
2022
US
2022
Other
20
21
UK
20
21
US
20
21
Other
Rate o
f in
cr
e
as
e in s
a
l
ar
i
e
s
n
/a
n
/a
2.2
%
n
/a
n
/a
2.5%
Rate o
f in
cr
e
as
e fo
r ac
t
i
ve d
ef
er
r
e
d me
mb
er
s
4.0%
n
/a
n
/a
4.2%
n
/a
n
/a
Rate o
f in
cr
e
as
e in p
en
si
on
s in p
a
y
me
nt
3.
4%
n
/a
1.
2
%
3.3
%
n
/a
1.
5
%
Rate o
f in
cr
e
as
e in d
efe
r
r
e
d pe
ns
io
ns
3.
4%
n
/a
n
/a
3.
3%
n
/a
n
/a
Discount rate
3.5%
4.5%
1.
1%
1.7
%
2
.7
%
0
.7
%
Infl
atio
n r
ate
3.
4%
n
/a
1.
3
%
3.3
%
n
/a
1.
5
%
Healthcar
e cost increase
s
4
.
4%
n
/a
n
/a
4
.
4%
n
/a
n
/a
Th
e as
s
ump
tio
ns u
se
d in c
al
cul
a
tin
g the c
os
t
s an
d ob
li
gat
ion
s of t
he Gr
o
up’
s def
in
ed b
en
ef
it p
en
sio
n pl
a
ns ar
e s
et b
y th
e Gr
ou
p af
te
r
con
sul
ta
tio
n w
it
h ind
ep
en
dent p
r
ofe
s
sio
na
lly q
ual
i
fi
ed a
c
tu
ar
ie
s
. T
he a
s
sum
pti
on
s us
ed a
re e
s
ti
mate
s ch
os
en f
r
om a r
ange o
f po
ss
ibl
e
ac
tu
ar
i
al as
s
umpt
io
ns w
hi
ch
, due to t
he t
ime
s
c
ale c
ov
er
e
d, m
ay n
ot ne
ce
s
s
ar
il
y occ
ur in p
r
a
c
tic
e. F
or co
untr
ies ou
t
si
de t
he UK a
nd U
S
A
,
assumptions are disclosed as a weigh
ted average.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
12
9
Inflation r
ate assumptions
Th
e RP
I inf
l
at
io
n as
su
mpt
ion of 3
.
4% has b
ee
n de
r
i
ve
d us
ing t
he A
on U
K Go
v
er
nm
ent G
ilt P
r
ic
e
s Onl
y Cur
v
e w
ith a
n Inf
l
ati
on R
isk P
r
em
ium
(IR
P
) of 0.
2
% p.
a
., w
h
er
ea
s in pr
e
v
io
us y
ea
r
s th
e A
on UK G
ov
er
nment R
PI C
ur
ve w
a
s us
e
d. I
t is e
s
tim
ated t
hat t
he im
pa
c
t of th
is ch
an
ge in
RP
I met
ho
do
lo
g
y is to in
cr
ea
s
e the R
P
I as
su
mpt
ion b
y 0.
1
% at 31 Jul
y 2
0
2
2 an
d thi
s is e
xp
ec
te
d to in
cr
ea
se t
he b
al
a
nce s
he
et l
iab
il
iti
e
s, f
or
bot
h SIP
S and T
IG
P
S
, by 1.0
% of DB
O at 31 Ju
ly 2
0
2
2
.
Th
e G
ov
er
n
ment
's r
es
po
ns
e to i
t
s con
su
lt
atio
n on R
PI r
ef
or
m w
a
s pub
l
ish
ed o
n 25 N
ov
em
be
r 2
0
2
0, a
nd s
tr
on
gl
y imp
li
ed t
hat R
PI w
il
l
be
com
e al
ig
ne
d w
ith C
PI
-H f
r
om 2
0
30
. No sp
e
cif
i
c all
o
w
anc
e (b
e
yo
nd an
y
thing a
lr
e
ad
y p
r
ic
ed in
to mar
ket
s
) h
as b
ee
n fa
c
tor
e
d into th
e RP
I
as
su
mpti
on
s for p
oten
tial c
ha
ng
es
. T
he a
s
su
mpti
on fo
r th
e lon
g-
ter
m g
ap be
t
w
ee
n RP
I an
d CP
I is 0
.6% p.
a. (
F
Y
2
0
21
:0
.6%) r
ef
l
ec
ti
ng t
he
Gr
oup’s vie
w on t
he m
ar
ket p
r
ici
ng of t
his g
ap o
ve
r the l
i
feti
me of t
he UK s
ch
em
es’ l
iab
il
iti
es
, i
.e. 1.0
% p.
a
. (F
Y
2
0
21: 1
.0%
) p
re
-2
0
3
0 an
d 0.
2
%
p.
a. p
os
t-20
3
0 (
F
Y
2
0
21
:0
.
1
%).
Discount rate as
sumptions
Th
e UK s
ch
em
es u
se a d
is
co
unt r
ate b
a
se
d on t
he an
nua
li
s
ed y
ie
ld o
n th
e Ao
n GBP S
e
le
c
t A
A Cur
v
e, us
ing t
he e
xp
ec
te
d c
as
h-f
l
ow
s f
r
om a
noti
on
al s
ch
eme w
i
th o
bl
iga
tio
ns of t
he s
a
me du
r
ati
on a
s tha
t of th
e UK s
che
me
s
. T
he U
S Pl
an use
s a di
s
cou
nt r
ate b
as
e
d on th
e ann
ual
i
se
d
y
iel
d der
iv
ed f
r
om W
i
ll
is Tower
s Wat
so
n’
s R
AT
E:L
in
k (1
0
th – 9
0
th) m
od
el us
ing t
he P
l
an’s expe
c
te
d ca
sh
-f
lo
w
s
.
Mor
tal
it
y assumptions
Th
e mo
r
tal
i
t
y a
s
sum
pti
ons u
s
ed in t
he p
r
inc
ip
al UK s
ch
em
es a
r
e ba
s
ed on t
he '
S
A
PS S
3' bi
r
th ye
ar t
abl
es w
i
th r
el
e
v
ant s
c
al
ing f
a
c
tor
s
ba
se
d on t
he r
e
cent e
xp
er
i
enc
e of th
e sc
he
me
s
. Th
e as
s
ump
tio
n al
lo
w
s for f
u
tur
e im
pr
o
ve
ment
s i
n li
fe e
xp
ec
t
an
c
y in l
in
e w
it
h the 2
021 CMI
pr
oj
ec
ti
on
s
, w
ith a s
mo
oth
ing f
a
c
tor of 7
.0 an
d '
A
' par
ameter of 0
.5
%
/
0
.2
5
% (
SI
P
S
/
T
I
GP
S
) an
d bl
end
ed to a l
on
g-te
r
m r
a
te of 1.25
%.
Th
e mo
r
tal
i
t
y a
s
sum
pti
ons u
s
ed in t
he p
r
inc
ip
al U
S sc
he
me
s ar
e b
as
ed o
n ge
ner
ation
al m
or
ta
li
t
y u
sin
g P
r
i-2
012 sex-d
is
tin
c
t, e
mp
lo
ye
e
/
non
-
di
s
abl
ed a
nnui
t
ant t
abl
e, w
i
th a 2
012 bas
e ye
ar
, pr
oje
c
te
d for
w
a
rd g
en
er
ation
all
y w
it
h the M
P-20
2
1 mor
t
al
it
y sc
ale
. No e
xp
li
ci
t
adj
us
tm
ent ha
s be
en m
ad
e to mo
r
tal
it
y as
sum
pti
on
s in r
e
spe
c
t of C
O
V
ID
-
1
9
.
E
x
pe
c
t
ed f
u
r
t
h
er y
e
ar
s of li
f
e
UK schemes
US schemes
Male
31 Ju
ly 2
0
2
2
Female
31 Ju
ly 2
0
2
2
Male
31 Ju
l
y 2
0
21
Female
31 Ju
l
y 2
0
21
Male
31 Ju
ly 2
0
2
2
Female
31 Ju
ly 2
0
2
2
Male
31 Ju
l
y 2
0
21
Female
31 Ju
l
y 2
0
21
Mem
b
er w
h
o re
ti
re
s n
ex
t yea
r at a
ge 6
5
22
24
22
24
21
22
20
22
Member
,
cur
rently 45
, when they retire
in 2
0 y
ea
r
s’ tim
e
23
25
23
25
22
24
22
24
Sensitiv
it
y
Se
ns
it
i
v
iti
e
s in r
es
pe
c
t of th
e key a
s
sum
pti
on
s us
ed to m
ea
sur
e t
he pr
incip
al p
en
si
on s
che
me
s as a
t 31 July 2
0
2
2 a
r
e set o
ut b
el
ow.
Th
e
se s
en
si
ti
v
i
tie
s s
ho
w the h
y
p
othe
tic
al i
mp
ac
t of a c
han
ge i
n ea
ch of t
he l
is
ted a
s
su
mpti
on
s in is
o
l
atio
n, w
i
th t
he exc
ept
ion o
f the s
en
si
ti
v
i
t
y
to inf
l
ati
on w
hi
ch in
cor
por
ate
s t
he im
pa
c
t of ce
r
tain c
or
r
el
a
tin
g as
su
mpt
ion
s
. In pr
ac
tic
e, su
ch as
s
ump
tio
ns r
are
ly ch
ang
e in i
so
l
ati
on
.
Profit before
tax
for year
ended
31 Ju
ly 2
0
2
2
£m
Increase
/
(decr
ease) i
n
scheme
assets
31 Ju
ly 2
0
2
2
£m
(Increase)/
decrease
in
scheme
liabilities
31 Ju
ly 2
0
2
2
£m
Pr
o
f
it b
e
fo
r
e
tax
fo
r ye
a
r en
d
ed
31 Ju
l
y 2
0
21
£m
Increase
/
(decrease) i
n
scheme
ass
ets
31 Ju
l
y 2
0
21
£m
(Increase)
/
decrease i
n
scheme
liabilities
31 Ju
l
y 2
0
21
£m
Rate o
f mo
r
tal
i
t
y – 1 y
e
ar in
cr
e
a
se i
n li
fe e
x
pe
c
t
an
c
y
(
2)
84
(
13
5
)
(2)
99
(
209)
Rate o
f mo
r
tal
i
t
y – 1 y
e
ar d
ec
r
ea
s
e in l
if
e ex
p
ec
t
an
c
y
2
(84)
13
6
2
(97
)
206
Rate o
f inf
l
at
io
n – 0.
2
5
% in
cr
e
as
e
(
1)
34
(
69
)
(1)
30
(9
8)
Di
sc
ou
nt r
a
te – 0.
2
5% i
nc
r
ea
s
e
2
(
49)
97
3
(3
8)
14
6
Mar
ket va
lu
e of s
ch
em
e as
s
et
s – 2
.
5
% inc
r
ea
s
e
1
4
0
–
1
73
–
Th
e ef
fec
t on p
r
ofi
t b
efor
e t
a
x ref
l
ec
t
s t
he im
pa
c
t of cu
r
r
ent s
er
v
ice c
os
t an
d net i
nter
e
st c
os
t
. T
he v
a
lue o
f the s
ch
em
e as
s
et
s is af
fec
te
d
by c
han
ge
s in m
or
ta
li
t
y ra
tes
, inf
l
at
io
n and d
is
cou
ntin
g be
c
au
se t
he
y af
f
ec
t t
he c
ar
r
y
i
ng v
al
ue of t
he in
sur
ance a
s
se
t
s.
A
ss
et valuation
Th
e p
ens
io
n sc
hem
e
s hol
d a
ss
et
s i
n a v
ar
ie
t
y of p
o
ole
d f
un
ds
, in w
hi
ch th
e un
der
lyin
g as
s
et
s t
yp
ic
al
ly ar
e i
nv
es
te
d in cr
e
di
t and c
a
sh a
s
set
s
.
Th
e
se f
un
ds a
r
e v
alu
ed
. T
he p
r
ice of t
he f
un
ds i
s se
t by a
dmin
is
tr
ator
s
/cu
sto
di
ans e
mpl
oy
e
d by t
he in
ve
s
tm
ent m
ana
ge
r
s an
d ba
s
ed o
n the
v
alu
e of th
e und
er
l
y
ing a
s
se
t
s hel
d in th
e f
und
s
. Det
ai
l
s of p
r
ic
ing m
eth
od
olo
g
y ar
e s
et ou
t w
i
thin i
nter
n
al co
ntr
ol r
e
por
t
s pr
o
v
id
ed f
or e
ach
fu
nd
. Pr
i
ce
s ar
e up
date
d da
ily, we
ekly o
r mo
nthl
y dep
en
din
g up
on th
e fr
e
qu
enc
y of the f
un
d’s dea
li
ng
.
Bo
nds a
r
e v
alu
ed u
sin
g ob
se
r
v
abl
e br
oker q
uote
s
. Gil
t r
epu
rc
ha
se o
bl
ig
ati
ons a
r
e v
alu
ed b
y th
e r
ele
v
ant m
ana
ge
r
, whi
ch de
r
i
ve
s t
he v
al
ue
usi
ng an i
ndu
s
tr
y r
eco
gn
is
ed m
od
el w
i
th ob
s
er
v
ab
le inp
ut
s
.
Pr
o
per
t
y is va
lu
ed b
y sp
ec
ial
is
t
s a
ppl
y
ing r
e
co
gni
se
d pr
o
pe
r
t
y v
alu
ati
on m
etho
ds i
nco
r
p
or
a
tin
g cur
rent m
ar
ket da
ta o
n r
ent
al y
ie
ld
s and
tr
ansa
ction pr
ices
.
T
otal r
et
ur
n
, inter
e
s
t and i
nf
l
atio
n s
w
ap
s an
d for
w
a
rd F
X co
ntr
ac
t
s ar
e bil
a
ter
a
l agr
e
em
ent
s b
et
w
e
en co
unter
par
tie
s an
d do n
ot ha
ve
obs
er
v
a
ble m
ar
ket p
r
ic
es
. T
he
s
e de
r
i
v
ati
v
e co
ntr
act
s are v
al
ue
d usi
ng o
bs
er
v
ab
le in
pu
t
s.
Ins
ur
ed l
ia
bil
i
tie
s co
mpr
ise a
nnui
t
y pol
ici
e
s br
o
adl
y match
in
g the s
ch
em
e obl
i
gati
on to i
dent
if
ie
d gr
ou
ps of m
emb
er
s. T
he
s
e as
s
et
s ar
e
v
alu
ed b
y an e
x
ter
n
al qu
al
if
ie
d ac
t
ua
r
y at the a
c
tu
ar
ia
l v
alu
ati
on of th
e co
r
r
es
po
ndi
ng l
ia
bil
it
y, refl
ec
t
ing t
hi
s match
ing r
e
l
atio
ns
hip
.
Th
e in
sur
ance p
ol
ic
ie
s ar
e tr
e
ated a
s qu
al
if
y
ing in
su
r
an
ce p
ol
ic
ie
s as n
on
e of the i
ns
ur
er
s a
re r
e
l
ated p
ar
ti
es o
f Smi
th
s Gr
ou
p, and t
he
pr
oc
ee
ds of t
he p
ol
ic
ie
s c
an on
ly b
e us
ed to p
a
y or f
und e
mp
lo
ye
e be
nef
i
t
s for t
he r
e
sp
ec
ti
v
e s
ch
eme
s
, ar
e n
ot av
a
il
ab
le to Sm
it
hs G
ro
up’s
cr
ed
ito
r
s an
d ca
nn
ot be p
ai
d to Smi
th
s Gr
o
up.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
13
0
Retirement benefit plan assets
31 Ju
ly 2
0
2
2 – £m
31 J
ul
y 2
0
21 – £
m
UK
schemes
US
schemes
Other
countries
To
t
a
l
UK
schemes
US
schemes
Other
countries
To
t
a
l
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
90
1
1
92
71
1
–
72
Pooled funds:
– Pool
ed equi
t
y
–
–
3
3
–
–
3
3
– Pooled Diver
sif
ied Grow
th
–
–
15
15
–
–
19
19
– Pool
ed credit
379
–
–
379
420
–
–
42
0
Corp
or
ate
bonds
412
167
–
579
791
19
2
–
98
3
Gover
nment bonds
/L
DI
49
8
57
3
558
1,
2
9
8
79
3
1,
3
8
0
Insured liabili
ties
1,6
4
9
–
–
1,
6
49
1,
4
6
2
–
–
1,
4
6
2
Prop
er
t
y
39
–
–
39
62
–
–
62
Other
–
–
–
–
–
–
5
5
T
ot
al m
ar
ke
t v
al
u
e
3
,
0
67
225
22
3
,
3
14
4
,1
0
4
272
30
4,406
Th
e as
s
et
s a
re u
nqu
ote
d. G
ov
er
n
men
t bon
ds
/L
D
I po
r
tfo
l
ios c
ont
ain £
96
0
m (F
Y
2
021
: £1
,92
9m
) of UK G
ov
er
nment b
on
ds (g
ilt
s
), £
47
6m
(F
Y
2
0
21: £626m
) of g
ilt r
ep
ur
ch
as
e ob
li
gat
ion
s an
d £9
m of inter
e
s
t an
d inf
l
ati
on s
w
a
p as
s
et
s (
F
Y
2
0
21
: £5
m ob
li
gat
io
ns
).
Th
e UK b
on
d po
r
tf
ol
io
s inc
lud
e for
w
a
r
d F
X contr
ac
t
s w
it
h a net v
a
lue of £
5
m (
F
Y
2
0
21
: £1
m). T
he
s
e ar
e he
ld to h
ed
ge a
gai
ns
t fo
re
ign
cur
r
e
nc
y r
isk in r
e
sp
ec
t of o
v
er
s
ea
s bo
nd
s
.
Th
e s
che
me a
s
set
s do not in
clu
de a
ny pr
o
pe
r
t
y oc
cup
ie
d by, or oth
er a
s
set
s u
s
ed b
y, the Gr
o
up.
Present value of funded scheme liabilities and assets for the main UK and US schemes
31 Ju
ly 2
0
2
2 – £m
31 J
ul
y 2
0
2
1 – £m
SIPS
TIGPS
US
schemes
SIPS
TIGP
S
US
schemes
Pr
e
s
ent v
alue o
f fu
nd
e
d sc
he
me l
ia
bi
li
t
ie
s:
– Acti
ve deferre
d members
(32)
(
23)
(
41)
(42
)
(
2
9)
(73)
– Deferred member
s
(
5
61
)
(
4
42)
(10
9
)
(
8
10
)
(6
32
)
(
11
9
)
– Pensioners
(
1
,01
0)
(6
70)
(88)
(
1,
2
2
6
)
(8
09)
(
8
1)
Pr
e
s
ent v
alue o
f fu
nd
e
d sc
he
me l
ia
bi
li
t
ie
s
(1,6
0
3
)
(1
,
135)
(23
8)
(2
,07
8)
(1,
4
7
0
)
(
27
3)
Mar
ket va
lu
e of s
ch
em
e as
s
et
s
1,912
1
,15
5
2
25
2
,
410
1,
6
8
4
272
Surp
lus restr
ic
tion
–
(20)
–
–
–
–
Surplus
/(deficit)
309
–
(13
)
332
214
(1)
Net retirement benefit obligations
31 Ju
ly 2
0
2
2 – £m
31 J
ul
y 2
0
21 – £
m
UK
schemes
US
schemes
Other
countries
To
t
a
l
UK
schemes
US
schemes
Other
countries
To
t
a
l
Mar
ket va
lu
e of s
ch
em
e as
s
et
s
3,
0
67
2
25
22
3,
3
14
4
,1
0
4
272
30
4,4
06
Pr
e
s
ent v
alue o
f fu
nd
e
d sc
he
me l
ia
bi
li
t
ie
s
(
2,738)
(2
38)
(
27
)
(
3,00
3)
(3,55
8)
(27
3)
(
38)
(
3
,
8
69
)
Surp
lus restr
ic
tion
(2
0)
–
–
(20)
–
–
–
–
Surplus
/(deficit
)
309
(13
)
(5)
2
91
546
(1)
(8)
5
37
Unf
un
de
d p
en
si
on p
l
an
s
(4
3)
(
7)
(4
0)
(90)
(54
)
(7)
(5
5)
(
116
)
Post-retirement healthcar
e
(4)
(1)
(2
)
(7
)
(4)
(
1)
(
3)
(8)
Pre
sent value of
unfunded obligations
(
47
)
(8)
(42)
(97
)
(5
8)
(8)
(58)
(12
4
)
Net pension
ass
et/(liabilit
y)
262
(
21)
(
47
)
194
4
88
(9)
(6
6)
413
Retirement benefit assets
309
–
–
3
09
546
–
–
546
Retirement benefit liabilities
(
47
)
(
2
1)
(47
)
(
11
5
)
(58)
(9)
(
61)
(
12
8
)
Liabili
ties held for sale
–
–
–
–
–
–
(5)
(5)
Net pension
ass
et/(liabilit
y)
262
(
21)
(
47
)
194
4
88
(9)
(6
6)
413
L
iab
ili
ti
es h
el
d for s
a
le in F
Y
2
0
21 c
om
pr
i
se £
4
m of unf
un
de
d pe
ns
ion p
l
an
s an
d £1
m def
ici
t on d
ef
ine
d b
enef
i
t s
che
me
s w
it
hin t
he S
mit
hs
Medical division
.
W
her
e a
ny in
di
v
id
ual s
c
hem
e sh
ow
s a r
e
co
ve
r
ab
le s
ur
pl
us un
de
r I
A
S 1
9
, this is d
is
clo
s
ed o
n the b
al
a
nce s
he
et as a r
et
ir
em
ent b
enef
i
t as
s
et
.
Th
e I
A
S 1
9 sur
plus of a
ny on
e s
che
me i
s not a
v
ail
a
ble to f
u
nd th
e I
A
S 1
9 def
ic
it of a
not
her s
ch
em
e. T
h
e ret
ir
em
ent b
ene
fi
t as
s
et di
sc
lo
se
d
ar
is
e
s f
ro
m th
e r
ight
s of the em
plo
y
er
s to r
e
co
ve
r the s
ur
p
lus at t
he e
nd of t
he l
ife o
f the s
ch
em
e i.e
. w
he
n the l
a
s
t be
nef
ic
iar
y
’s obli
gat
ion
has b
e
en me
t.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
131
Amounts recognised in the consolidated income statement
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Amount
s charged to
oper
ating profit
Curr
ent ser
v
ice cost
2
2
Pa
s
t s
er
v
ic
e co
s
t
s – be
nef
i
t e
qu
al
is
at
io
n
s
43
6
Set
tlement loss
17
1
–
Scheme administr
ation cost
s
4
5
220
13
Th
e op
e
r
at
in
g co
s
t is c
ha
r
ge
d a
s fo
l
lo
w
s:
Headl
ine administr
ati
ve expe
nse
s
6
7
Non-headline settlement loss
17
1
–
Non-he
adline adminis
tr
ati
ve expen
ses
43
6
220
13
A
mo
un
t
s cr
e
di
te
d to f
in
an
ce c
os
t
s
Non-headl
ine other finance income
– retirement benefit
s
(7)
(6)
Amounts recognised directly in the consolidated statement of comprehensive income
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Re-measurement
s of retirement
defined benefit assets and liabilities
Di
f
fe
r
en
ce b
et
we
en in
ter
e
s
t cr
e
di
t an
d re
tu
r
n on a
s
s
et
s
(83
5)
(57
)
E
xper
ience gains on scheme liabilities
(
3
1)
44
Ac
t
ua
r
ia
l ga
in
s ar
i
si
ng f
r
om c
ha
ng
e
s in d
em
og
r
ap
hi
c as
s
um
pti
on
s
1
10
Actuar
ial gains/(los
ses
) arising from changes in
financial assumptions
86
8
16
Movement in surplus res
tric
tion
(20)
–
(17
)
13
Changes in present value of funded scheme assets
31 Ju
ly 2
0
2
2 – £m
31 J
ul
y 2
0
21 – £
m
UK
schemes
US
schemes
Other
countries
To
t
a
l
UK
schemes
US
schemes
Other
countries
To
t
a
l
At beginning of
per
iod
4
,1
0
4
272
30
4,406
4,240
3
11
31
4
,582
Inte
re
s
t o
n as
s
et
s
70
8
1
79
58
7
1
66
Ac
t
ua
r
ia
l mo
v
em
ent o
n s
ch
em
e as
s
et
s
(773)
(62
)
–
(8
3
5)
(4
0)
(
17
)
–
(57
)
Employer contribu
tions
3
–
1
4
20
4
1
25
Scheme administr
ation cost
s
(
3)
(
1)
–
(4)
(4)
(
1)
–
(5)
Foreign exchange
r
ate
movements
–
3
3
–
33
–
(
17
)
–
(
17
)
A
s
s
et
s t
r
a
ns
fe
r
r
ed o
n b
usi
ne
s
s d
isp
o
s
al
–
–
(5)
(5)
–
–
–
–
A
s
s
et
s d
is
tr
ibu
ted o
n s
et
t
lem
en
t
s
(18
0)
–
–
(18
0
)
–
–
–
–
Cur
t
ailment gains
/(l
oss
es)
–
(9)
–
(9)
–
–
–
–
Be
nef
i
t
s p
ai
d
(15
4
)
(16
)
(5)
(
17
5
)
(
17
0
)
(15
)
(
3)
(18
8
)
At end
of period
3
,
0
67
2
25
22
3
,
314
4
,1
0
4
272
30
4,406
Changes in present value of funded defined benefit obligations
31 Ju
ly 2
0
2
2 – £m
31 J
ul
y 2
0
21 – £
m
UK
schemes
US
schemes
Other
countries
To
t
a
l
UK
schemes
US
schemes
Other
countries
To
t
a
l
At beginning of
per
iod
(3,558)
(
2
73)
(3
8)
(3
,
8
69)
(3
,72
4
)
(
314
)
(4
0)
(4
,0
78)
Curr
ent ser
v
ice cost
–
–
–
–
–
–
(1)
(1)
Pas
t ser
v
ice cost
s
(4
3)
–
–
(
4
3)
(6
)
–
–
(6)
Interest on obligations
(
61)
(8)
(1)
(70)
(
51)
(7)
(2)
(60)
Ac
tuarial mov
ement on
liabil
ities
761
5
4
2
8
17
53
16
–
69
Foreign exchange
r
ate
movements
–
(33)
–
(3
3)
–
17
2
19
Liabili
ties tr
ansfer
red on busines
s disposal
–
–
5
5
–
–
–
–
Cur
t
ailment gains
/(l
oss
es)
–
6
–
6
–
–
–
–
Liabili
ties extin
guished on settlements
9
–
–
9
–
–
–
–
Be
nef
i
t
s p
ai
d
15
4
16
5
17
5
17
0
15
3
18
8
At end
of period
(
2
,73
8)
(2
38)
(27
)
(3,
003)
(3
,55
8)
(
27
3)
(38)
(3
,
8
69)
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
13
2
Changes in present value of unfunded defined benefit pensions and post-retirement healthcare plans
A
sset
s
Obligations
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
At beginning of
per
iod
–
–
(12
4
)
(13
2
)
Curr
ent ser
v
ice cost
–
–
(1)
(1)
Interest on obligations
–
–
(2)
(1)
Ac
tuarial mov
ement
–
–
21
2
Employer contribu
tions
5
5
–
–
Foreign exchange
r
ate
movements
–
–
–
3
Liabili
ties tr
ansfer
red on busines
s disposal
–
–
4
–
Be
nef
i
t
s p
ai
d
(5)
(5)
5
5
At end
of period
–
–
(9
7
)
(12
4
)
Changes in the effect of the asset ceiling over the year
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Irrecover
able asset at beginning of
period
–
–
Ac
t
ua
r
ia
l mo
v
em
ent o
n s
ch
em
e as
s
et
s
(2
0)
–
At end
of period
(20)
–
Cash contributions
Co
mp
any c
ont
r
ibu
ti
on
s to the d
ef
ine
d b
enef
i
t pe
ns
ion p
l
an
s and p
os
t-r
eti
r
eme
nt he
alt
hc
ar
e p
l
ans to
ta
ll
ed £
9m (
F
Y
2
0
21
: £
3
0
m).
Th
is c
omp
r
is
e
d re
gu
l
ar co
ntr
i
but
io
ns to f
un
de
d sc
he
me
s of £
3
m (F
Y
2
0
21: £
12m) to SIP
S, £n
il (
F
Y
2
0
21
: £8
m
) to T
IGP
S, £n
il (
F
Y
2
0
21
: £4
m
)
to fu
nde
d U
S sc
he
me
s an
d cont
r
ib
uti
on
s to oth
er s
che
me
s of £1m (F
Y2
0
21: £
1
m
). In ad
dit
io
n, £
5
m (F
Y
2
021
: £
5m
) w
a
s spe
nt on p
r
ov
i
din
g
ben
ef
it
s u
nd
er unf
un
de
d def
in
ed b
en
ef
it p
en
sio
n an
d po
st-r
et
ir
eme
nt he
alt
hc
ar
e p
l
an
s.
In F
Y
2
0
2
3
, c
ash c
ont
r
ibu
ti
on
s to the G
r
oup’s sche
me
s ar
e e
xp
ec
te
d to be u
p to £1
2m in tot
al
.
9 Employee
share s
chemes
Th
e Gr
o
up op
er
ates sh
ar
e s
che
me
s an
d pl
a
ns fo
r th
e ben
ef
it of e
mp
lo
ye
e
s. T
h
e nat
ur
e of th
e pr
i
nci
pa
l sc
hem
e
s and p
l
an
s
, inc
lud
ing g
en
er
al
conditions, is set out
below:
Long-
T
erm Incen
tive Pl
an (L
T
IP)
Th
e LTIP is a s
har
e p
l
an un
de
r w
hic
h an aw
ard o
ve
r a c
app
e
d num
ber o
f sha
r
es w
i
ll v
es
t af
ter th
e end o
f a thr
e
e-
y
ear p
er
for
mance p
er
iod if
per
fo
r
man
ce co
nd
it
ion
s ar
e me
t. LTIP a
w
ar
d
s ar
e ma
de to s
el
ec
te
d se
nio
r exe
cu
ti
v
e
s, i
ncl
udi
ng t
he E
xe
cu
ti
v
e Di
re
c
tor
s.
L
TIP per
for
m
ance co
ndi
tion
s
Ea
ch p
er
for
m
an
ce co
ndi
ti
on ha
s a th
re
s
hol
d b
elo
w w
hi
ch no s
ha
re
s v
e
st a
nd a m
ax
imu
m pe
r
for
ma
nce t
ar
g
et at or a
bo
ve w
h
ich t
he
aw
a
rd v
e
s
t
s in f
ul
l
. For p
er
for
manc
e bet
we
en ‘t
hr
e
sho
ld
’ an
d ‘max
imu
m’
, a
w
ar
d
s ve
s
t on a s
t
r
ai
ght-l
ine s
li
din
g sc
a
le. T
h
e pe
r
for
m
anc
e
con
di
tio
ns a
re a
s
se
s
s
ed s
ep
ar
ately; s
o p
er
for
m
anc
e on on
e co
ndi
ti
on do
e
s not a
f
fe
c
t th
e ve
s
ti
ng of t
he oth
er e
lem
ent
s of t
he a
w
ar
d. To the
ex
te
nt tha
t the p
er
for
mance t
ar
g
et
s ar
e n
ot met o
ve
r th
e thr
e
e-
y
ea
r per
fo
r
man
ce p
er
i
od
, aw
a
r
ds l
ap
s
e. T
he
r
e is n
o re
-te
s
tin
g of th
e
per
for
mance conditions.
L
T
IP aw
ard
s ha
ve p
er
for
m
an
ce co
ndi
ti
on
s re
l
ati
ng to or
g
ani
c re
v
enu
e gr
o
w
th, gr
o
w
th in he
adl
in
e EP
S, R
OCE
, f
r
ee c
a
sh
-f
lo
w and m
ee
tin
g
ESG t
arge
ts.
Smiths E
xce
llence Pl
an (
SEP)
Th
e l
a
st S
mi
th
s E
xce
lle
nce p
l
an (
S
EP
) g
r
ant w
a
s is
s
ue
d in O
c
tob
er 2
019
, v
e
ste
d on 31 J
uly 2
0
21 a
nd exe
rc
is
e
d in Oc
to
be
r 2
0
21. No fur
the
r
SEP awards ha
ve been
made.
R
estrict
ed st
ock
Res
tr
icte
d s
toc
k is u
se
d by t
he Re
mun
er
at
io
n and P
eo
pl
e Co
mmi
t
tee
, as a p
ar
t of r
ec
r
ui
tm
ent s
tr
ateg
y, to make aw
ar
d
s in r
ec
og
nit
io
n
of inc
enti
v
e ar
r
ang
eme
nt
s for
fei
ted o
n le
av
i
ng a pr
e
v
io
us e
mpl
oy
er
. If an a
w
ar
d i
s con
si
der
e
d ap
pr
op
r
iate
, the a
w
ar
d w
il
l t
ake acc
ou
nt of
re
le
v
ant f
ac
to
r
s in
clu
din
g th
e f
air v
al
ue of a
w
ar
d
s for
fei
ted
, an
y pe
r
for
ma
nce c
on
dit
ion
s at
t
ac
he
d, t
he l
ikel
ih
oo
d of th
os
e co
nd
iti
on
s be
ing
met an
d th
e pr
op
or
ti
on of th
e ve
s
ti
ng p
er
i
od r
em
ain
ing
.
Save as you earn (
S
A
YE
)
Th
e S
AY
E s
ch
eme i
s an HM Re
ve
nu
e & Cus
tom
s ap
pr
o
ve
d al
l-e
mpl
oy
e
e s
av
in
gs
-r
el
a
ted sh
ar
e op
tio
n sc
he
me w
hi
ch is o
pe
n to al
l UK
emp
lo
ye
e
s. P
a
r
ticip
ant
s e
nter into a c
ont
r
ac
t to s
a
v
e a fi
xed a
mo
unt p
er mo
nth of u
p to £5
00 i
n ag
gr
eg
ate for t
hr
ee y
e
ar
s an
d ar
e gr
anted
an opt
io
n ov
er sh
ar
e
s at a f
ixe
d opt
io
n pr
i
ce, s
et at a di
sc
ou
nt to mar
ket p
r
ic
e at th
e date of i
nv
i
tat
ion to p
ar
ti
cip
ate
. Th
e num
be
r of sh
ar
e
s is
deter
mine
d by t
he m
onth
ly am
ount s
a
v
ed an
d th
e bo
nus p
ai
d on m
atur
it
y of t
he s
a
v
ing
s co
ntr
a
c
t
. Opt
ion
s gr
anted un
der t
he S
A
Y
E s
ch
eme
ar
e not s
ubj
ec
t to a
ny p
er
for
m
anc
e con
di
tio
ns
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
13
3
Lon
g-ter
m
incenti
ve
plans
SEP
Restric
ted
stoc
k
S
av
e a
s y
ou
earn
scheme
Tot
a
l
Weighted
average
exercise
price
Ordinar
y shares under option/
awar
d (’000)
31 Ju
ly 2
02
0
3
,9
3
7
1,
2
9
5
131
1,
2
0
7
6,570
£1.
8
9
Gr
a
nted
2
,14
3
358
11
139
2
,
6
51
£0.6
8
Exercise
d
(3
4
6)
(
4
11
)
(60)
(16
5
)
(982
)
£
2.0
3
Lap
sed
(
8
19
)
(391
)
(18
)
(96)
(1,
3
2
4
)
£
0
.7
5
31 Ju
ly 2
02
1
4
,9
15
8
51
64
1,
0
8
5
6
,915
£1.
6
3
Reclas
sific
ation
348
(3
4
8)
–
–
–
–
Gr
a
nted
2,255
–
2
12
167
2
,6
3
4
£0
.7
1
Exercise
d
(224)
(
313
)
(
16
3
)
(13
8
)
(8
3
8)
£
1.9
0
Lap
sed
(1,9
8
4
)
(19
0
)
(30)
(
22
9)
(
2,4
3
3)
£
0.9
7
31 Ju
ly 2
02
2
5
,
3
10
–
83
8
85
6,278
£
1.
4
5
Opt
ion
s an
d aw
a
r
ds w
er
e exe
rc
is
ed o
n an ir
reg
ul
ar b
a
sis d
ur
in
g th
e per
iod. T
h
e av
er
age c
los
in
g sha
re p
r
ic
e ov
er t
he f
ina
nc
ial y
ea
r w
as
1
,
47
6.
3p (
F
Y
2
0
21
: 1,50
8.6
p). T
he
re h
as b
e
en no c
ha
nge to t
he ef
fec
ti
v
e op
tio
n pr
i
ce of a
ny of th
e ou
t
s
ta
nd
ing o
pti
on
s dur
i
ng th
e pe
r
io
d.
Th
e num
be
r of exe
rc
is
ab
le s
har
e o
ptio
ns a
t 31 July 2
0
2
2 w
as nil (
31 Jul
y 2
0
21
: nil
).
Ra
ng
e o
f ex
er
c
is
e p
r
i
ce
s
T
otal shares under
options/awards
at 31 J
u
ly 2
0
22
(’000
)
Weighted average
remaining contractual
li
f
e at 31 J
u
ly 2
0
22
(months)
Tota
l sh
ar
e
s u
nd
e
r
options/awar
ds
at 31 J
ul
y 2
0
2
1
(’000
)
Weighted av
er
age
remaining contr
actual
li
f
e at 31 J
u
ly 2
0
2
1
(mont
hs)
£0
.0
0 – £2
.
0
0
5,39
3
19
5,83
0
15
£6.01
– £1
0.00
49
0
18
655
30
£10.
01 – £12.
0
0
395
29
430
24
For t
he p
ur
p
os
es o
f v
alu
ing o
pti
on
s to ar
r
i
v
e at th
e sha
r
e-
b
as
ed p
a
y
ment c
har
g
e, th
e bi
nom
ial o
pti
on p
r
ici
ng m
od
el ha
s be
en u
s
ed
. T
he key
as
su
mpti
on
s us
ed i
n th
e mo
del w
er
e v
ol
at
il
it
y of 25
% to 2
0
% (
F
Y
2
0
21
: 25
% to 2
0
%
) an
d di
v
id
end y
i
el
d of 2
.6% (F
Y
2
0
21: 2.8
%
), b
as
ed o
n
his
tor
ica
l dat
a, f
or th
e pe
r
io
d co
r
r
es
po
ndi
ng w
i
th th
e ve
s
ti
ng p
er
i
od of t
he op
tio
n. T
h
e
se g
en
er
ate
d a w
eig
hted a
ve
r
a
ge f
air v
alue fo
r L
T
IP of
£1
4
.81 (
F
Y
2
0
21: £
14.
1
0), a
nd r
e
st
r
ic
te
d s
toc
k of £14.59 (
F
Y
2
0
21: £
14.6
3). St
af
f c
os
t
s in
clu
de
d £1
5m (
F
Y
2
0
21
: £14m) f
or sh
ar
e
-b
as
e
d pa
y
me
nt
s
,
of w
hic
h £14m (F
Y
2
0
21: £
13m) r
el
ated to eq
uit
y-
set
tled s
har
e
-b
a
se
d p
ay
m
ent
s
.
1
0 Intangib
le a
s
set
s
Goodwill
£m
Development
costs
£m
Acquire
d
intangibles
(see ta
ble
below)
£m
Sof
t
war
e,
pa
te
nt
s a
nd
intellectual
proper
t
y
£m
To
t
a
l
£m
Cost
At 31 J
uly 2
0
2
0
1,
2
5
4
15
5
546
174
2
,1
2
9
Foreign exchange
r
ate
movements
(6
8)
(7
)
(30)
(6)
(
111
)
Business combinations
21
–
46
–
67
Additions
–
8
–
10
18
Disposal
s
–
–
–
(1)
(1)
At 31 J
uly 2
0
21
1,
2
0
7
15
6
5
62
17
7
2
,1
0
2
Foreign exchange
r
ate
movements
10
4
6
68
10
18
8
Additions
–
12
–
6
18
At 31 J
uly 2
0
2
2
1
,
3
11
174
630
19
3
2,308
Amor
tis
ation and impairments
At 31 J
uly 2
0
2
0
62
112
2
49
14
2
565
Foreign exchange
r
ate
movements
(3)
(5)
(
15
)
(4)
(
27)
Amor
tisation charge for
the year
–
7
53
7
67
Disposal
s
–
–
–
(1)
(1)
At 31 J
uly 2
0
21
59
11
4
2
87
14
4
60
4
Foreign exchange
r
ate
movements
4
6
35
6
51
Amor
tisation charge for
the year
–
3
51
7
61
Imp
ai
r
me
nt c
ha
r
ge fo
r th
e y
ea
r
4
–
–
–
4
At 31 J
uly 2
0
2
2
67
12
3
373
15
7
720
Ne
t bo
ok v
a
lu
e a
t 31 Ju
ly 2
02
2
1,
2
4
4
51
257
36
1,
5
8
8
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
21
1,1
4
8
42
275
33
1,
49
8
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
2
0
1,1
9
2
43
297
32
1,
5
6
4
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
13
4
In ad
di
tio
n to go
od
w
il
l
, ac
qui
re
d int
an
gib
le a
s
set
s c
om
pr
i
se:
Pate
nts
,
licences
and
trademar
ks
£m
T
echnology
£m
Customer
relationships
£m
To
t
a
l
acquired
intangibles
£m
Cost
At 31 J
uly 2
0
2
0
15
13
9
392
546
Foreign exchange
r
ate
movements
(
1)
(7
)
(22)
(
30)
Business combinations
3
2
41
46
At 31 J
uly 2
0
21
17
13
4
411
562
Foreign exchange
r
ate
movements
2
18
48
68
At 31 J
uly 2
0
2
2
19
15
2
4
59
630
Am
or
tis
atio
n
At 31 J
uly 2
0
2
0
4
60
18
5
2
49
Foreign exchange
r
ate
movements
–
(3)
(
12
)
(15
)
Cha
r
ge f
or t
he y
ea
r
1
10
42
53
At 31 J
uly 2
0
21
5
67
215
2
87
Foreign exchange
r
ate
movements
1
10
24
35
Cha
r
ge f
or t
he y
ea
r
2
10
39
51
At 31 J
uly 2
0
2
2
8
87
278
373
Ne
t bo
ok v
a
lu
e a
t 31 Ju
ly 2
02
2
11
65
181
257
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
21
12
67
19
6
275
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
2
0
11
79
2
07
297
Indi
v
i
du
all
y mate
r
ial i
nta
ngi
bl
e as
s
et
s co
mpr
ise £
71m of cus
tome
r r
el
ate
d int
an
gibl
e
s at
tr
i
bu
ta
ble to U
ni
ted F
le
xi
ble (
r
em
ain
ing a
mor
ti
s
ati
on
per
iod: 4 ye
ar
s), £6
1
m of cu
sto
me
r re
l
ati
on
ship i
nta
ng
ibl
es at
tr
ibu
t
abl
e to Mor
pho De
tec
t
ion (
r
em
aini
ng am
or
ti
s
atio
n pe
r
io
d:
6 ye
ar
s
), £
3
5m o
f cu
sto
me
r-
r
el
ate
d int
an
gibl
e
s at
tr
i
bu
ta
ble to Ro
y
al M
et
al (
re
mai
nin
g am
or
tis
at
ion p
er
iod: 6 ye
ar
s
), an
d £1
9m of
de
ve
lop
me
nt cos
t int
an
gi
ble
s at
t
r
ib
ut
ab
le to a co
mpu
te
d tomo
gr
aphy p
r
ogr
amme i
n Dete
c
ti
on th
at is c
ur
r
ent
ly un
de
r de
ve
lop
me
nt.
Th
e ch
ar
ge a
s
s
oc
iate
d w
ith t
he am
or
ti
s
atio
n of int
an
gib
le a
s
set
s i
s inc
lu
de
d in op
er
ating c
os
t
s on t
he co
ns
o
li
date
d inc
om
e st
ate
ment
.
1
1 Imp
air
me
nt tes
ting
Goodw
ill
Go
od
w
i
ll i
s tes
te
d for i
mp
air
m
ent at l
ea
st a
nnu
al
ly or w
h
en
ev
er th
er
e i
s an in
dic
at
ion t
hat t
he c
ar
r
y
in
g v
al
ue ma
y no
t be r
e
co
ver
able
.
Fur
ther d
et
ail
s of the im
pa
ir
me
nt r
ev
i
ew p
r
oc
es
s an
d ju
dg
eme
nt
s ar
e in
clu
de
d in th
e '
S
our
ce
s of e
s
tim
ati
on un
cer
ta
int
y' s
ec
ti
on of t
he
'Basis of preparation' f
or the consolidated financial
statements.
For t
he p
ur
p
os
e of imp
ai
r
me
nt tes
t
ing
, as
s
et
s ar
e gr
o
up
ed at t
he lo
w
e
st l
ev
el
s for w
hi
ch th
er
e ar
e s
ep
ar
a
tely i
dent
if
ia
ble c
a
sh
-f
lo
w
s
, kn
ow
n
as cash gener
ating units (CGUs
), taking in
to consider
ation the commonalit
y of repor
ting, policies
, leader
ship and intra-
div
isional tr
ading
re
l
ati
on
ship
s
. Go
od
w
i
ll a
cqu
ir
ed t
hr
ou
gh bu
sin
e
ss c
om
bin
atio
ns i
s al
lo
c
ated to gr
o
ups o
f CG
Us at a di
v
i
si
ona
l (or o
pe
r
at
ing s
e
gme
nt
) le
v
el
,
bei
ng th
e lo
w
es
t l
ev
el at w
h
ich m
ana
ge
me
nt mon
ito
r
s p
er
for
m
anc
e se
pa
r
ate
ly.
Th
e c
ar
r
y
in
g v
al
ue of g
oo
d
w
il
l at 31 July i
s al
lo
c
ated b
y di
v
i
sio
n as f
oll
o
w
s:
2022
£m
2022
Number of
CGUs
20
21
£m
20
21
Nu
mb
e
r of
CGUs
John Crane
13
2
1
12
9
1
Smiths Detection*
644
2
61
0
1
F
l
e
x
-Te
k
194
1
16
9
1
Smiths Interconnect
2
74
1
240
1
Smiths Medic
al
–
–
–
1
1,
2
4
4
5
1
,1
4
8
5
*
I
n F
Y2
0
2
2 t
h
e Sm
i
th
s D
et
ec
t
i
on C
G
U ha
s b
e
en r
e
s
tr
uc
tu
r
e
d an
d th
e D
et
ec
t
i
on R
u
ss
i
a bu
s
in
e
s
s sp
l
it i
nt
o a s
ep
a
r
at
e C
GU, s
e
e t
he ‘
Ru
s
s
ia i
mp
a
ir
m
e
nt c
ha
r
g
es a
n
d r
el
a
te
d cl
o
su
r
e co
s
t
s’
se
c
t
io
n b
el
o
w fo
r f
ur
th
er d
et
a
il
s
Critic
al estimate
s used in impair
ment testing
Th
e r
ec
ov
er
able a
mou
nt for i
mp
air
m
ent te
s
tin
g is d
eter
m
ine
d f
ro
m th
e hig
her of f
a
ir v
al
ue le
s
s co
s
t
s of di
spo
s
al a
nd v
al
ue in u
se o
f the C
G
U.
In as
s
e
s
sin
g v
alu
e in us
e, t
he e
s
tim
ated f
u
tur
e c
a
sh
-fl
o
w
s ar
e dis
co
unte
d to the
ir pr
e
s
ent v
a
lue u
sin
g a po
s
t-ta
x dis
co
unt r
a
te that r
ef
le
c
t
s
cur
r
e
nt mar
ket ass
e
s
sme
nt
s of th
e tim
e v
al
ue of m
on
ey, fr
om w
h
ich p
r
e-
ta
x di
sc
ount r
ates ar
e d
eter
m
ine
d.
Fair v
al
ue l
es
s c
os
t
s of di
sp
os
al i
s c
alc
ul
ate
d us
ing a
v
ail
a
bl
e info
r
mat
ion o
n pa
s
t an
d ex
pe
c
ted f
u
tur
e p
ro
fi
t
abi
li
t
y
, v
alu
atio
n mul
tip
le
s fo
r
com
pa
r
ab
le qu
ote
d com
pa
nie
s an
d sim
il
ar t
r
an
s
ac
t
io
ns (
adj
us
te
d as r
eq
uir
e
d for s
ign
if
ic
ant d
if
fer
enc
es
) an
d info
r
ma
tio
n on co
s
t
s of si
mil
ar
tr
a
ns
a
c
tio
ns
. Fair v
alue le
s
s co
s
t
s to se
ll m
od
el
s are u
se
d w
he
n tr
a
din
g pr
o
jec
t
io
ns in t
he s
tr
ategic p
l
an c
a
nnot b
e a
djus
te
d to el
imi
nate t
he
imp
ac
t of a m
aj
or r
e
st
r
uc
t
ur
in
g.
Th
e v
al
ue in u
se o
f CG
Us is c
a
lcu
l
ated a
s th
e net p
re
s
ent v
a
lue o
f the p
r
oje
c
te
d r
isk-a
dju
ste
d c
as
h-f
l
ow
s of e
ac
h CG
U. T
he
se c
a
sh
-f
lo
w
for
e
c
as
t
s ar
e b
as
ed o
n th
e F
Y
2
0
2
3 b
usi
ne
s
s pl
an (
a
s app
r
ov
ed b
y th
e B
oa
rd
) an
d th
e fi
v
e
-y
e
ar det
ai
le
d di
v
is
ion
al s
tr
ategic p
r
oje
c
ti
on
s w
hic
h
hav
e b
ee
n pr
ep
ar
e
d by d
i
v
isi
ona
l ma
nag
em
ent an
d ap
pr
o
ve
d by t
he Ch
ief F
in
anc
ial O
f
fi
cer
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
13
5
Th
e key a
s
sum
pti
on
s us
ed i
n dete
r
min
ing t
he v
al
ue in u
s
e we
re:
–
Revenu
e:
Pr
oje
c
ted s
a
le
s we
r
e bui
lt up w
i
th r
efe
re
nce to m
ar
ket
s a
nd p
ro
du
c
t c
ateg
or
i
es
. T
h
ey in
co
r
po
r
ate
d p
as
t pe
r
for
ma
nce
, his
to
r
ic
al
gr
ow
th r
a
tes a
nd p
ro
je
c
tio
ns o
f de
ve
lop
me
nt
s in key m
ar
ket
s;
–
A
ver
age earning
s before interest and tax margin:
P
ro
je
c
ted m
ar
gin
s r
ef
le
c
t his
to
r
ic
al p
er
for
m
an
ce, o
ur ex
pe
c
t
ati
ons f
or f
ut
ur
e co
s
t
inf
l
ati
on an
d th
e imp
ac
t of a
ll c
omp
lete
d pr
oj
ec
t
s to i
mpr
o
v
e op
er
at
io
nal ef
fic
ie
nc
y a
nd l
ev
er
age s
c
ale
. T
he pr
o
je
c
tio
ns d
id no
t inc
lud
e th
e
imp
ac
t of f
u
tur
e r
e
s
tr
u
c
tur
i
ng p
r
oje
c
t
s to w
hic
h th
e Gr
ou
p w
as n
ot ye
t com
mit
ted;
–
Projected capital e
xpenditure:
The c
a
sh
-f
lo
w for
e
c
as
t
s fo
r c
api
t
al ex
pe
nd
itu
r
e we
re b
a
se
d on p
as
t e
xp
er
i
enc
e an
d inc
lud
ed c
omm
it
te
d
ong
oin
g c
ap
it
al e
xp
en
dit
ur
e co
nsi
s
tent w
i
th th
e F
Y
2
0
2
3 b
udg
et an
d th
e di
v
is
ion
al s
tr
ategic p
r
oj
ec
ti
on
s. T
h
e fo
re
c
as
t di
d not i
nc
lud
e any
fu
tu
re c
a
pi
ta
l exp
en
di
tur
e t
hat im
pr
o
ve
d
/enha
nce
d th
e op
er
ation
/ass
et in e
xce
s
s of it
s c
ur
r
ent s
t
an
dar
d o
f pe
r
for
ma
nce;
–
Dis
cou
nt r
a
te:
T
h
e dis
co
unt r
a
tes h
av
e be
en c
a
lcu
l
ated b
a
se
d on t
he Gr
o
up’s weighte
d av
er
age co
s
t of c
api
t
al an
d r
is
k
s sp
eci
f
ic to th
e C
GU
bei
ng te
s
ted
. In dete
r
mi
nin
g the r
isk adj
us
ted d
is
co
unt r
a
te, ma
nag
em
ent co
ns
ide
r
ed t
he s
y
s
tem
atic r
isk to ea
ch of t
he G
ro
up’s CGUs an
d
app
li
ed a
n av
er
age of di
sc
oun
t r
ate
s us
e
d by ot
her c
om
pa
nie
s fo
r the i
ndu
s
tr
i
es i
n w
hic
h Smi
th
s di
v
is
io
ns op
er
ate. P
re
-t
a
x r
ate
s of 1
1
.
3%
to 1
2
.
3% (
F
Y
2
0
21
: 9
.
9
% to 13.2
%
) h
av
e be
en u
se
d fo
r the i
mp
air
m
ent te
s
tin
g; and
–
Lon
g-
ter
m g
ro
w
th r
ate
s:
F
or th
e pu
r
po
se
s of t
he G
ro
up’s valu
e in us
e c
al
cul
a
tio
ns
, a lo
ng
-ter
m gro
w
th r
ate into p
er
p
et
uit
y w
as ap
pl
ie
d
imm
edi
ately a
t the e
nd of t
he f
i
v
e-
y
ear f
or
ec
a
s
t pe
r
io
d. G
ro
w
th r
ate
s fo
r th
e pe
r
io
d af
te
r the d
et
ail
ed fo
r
ec
a
st
s wer
e ba
s
ed o
n the
lon
g-
ter
m GD
P pr
oj
ec
t
ion
s of t
he pr
imar
y ma
r
ket for e
ac
h CG
U. Th
e av
er
age gr
o
w
th r
ate u
se
d in th
e te
st
in
g w
as 2
.0
% (F
Y
2
0
21
: 2.
1
%).
Th
e
se r
ates di
d not r
ef
le
c
t th
e lo
ng
-ter
m a
s
sum
pti
on
s us
ed b
y th
e Gr
ou
p for i
nv
es
t
ment p
l
an
nin
g.
Th
e as
s
ump
tio
ns u
se
d in th
e imp
ai
r
me
nt tes
t
ing o
f CG
Us w
it
h sig
ni
fi
c
ant go
od
wil
l ba
l
an
ce
s we
re a
s fo
ll
ow
s:
A
s a
t 31 Ma
y 2
0
22
John Crane
Smiths
Detection
F
l
e
x
-Te
k
Smiths
Interconnect
Net
book value
of
goodwill (£m)
13
2
640
18
7
266
Basis of valuation
Va
lu
e in u
s
e
Val
u
e in u
s
e
Val
ue i
n u
s
e
Val
ue i
n u
se
Discount rate
– p
re-tax
1
2.3%
11
.
3
%
11
.
7
%
11.
5
%
– p
o
s
t-
t
a
x
9.1%
8
.7
%
9.
2
%
9.
3
%
Perio
d covered by management projec
tions
5 yea
r
s
5 y
e
ar
s
5 y
e
ar
s
5 ye
ar
s
Revenue – compound annual
grow
th rate over projection per
iod
5.3%
3.8%
3.8
%
6.0
%
Av
er
age e
ar
n
in
gs b
efo
r
e inte
r
e
st a
nd t
a
x ma
r
gi
n
2
4
.9
%
14
.1
%
1
9.
7
%
17.
8
%
Lo
ng
-te
r
m gr
o
w
th r
at
es
1.9
%
2.4
%
1.
7
%
2
.1%
A
s at 3
1 Ju
ly 2
02
1
John Crane
Smiths
Detection
Flex-
T
ek
Smiths
Interconnect
Smiths
Medical
Net
book value
of
goodwill (£m)
12
9
610
169
24
0
5
35
Basis of valuation
Va
lu
e in u
s
e
Val
ue i
n u
se
Va
lu
e in u
s
e
Val
ue i
n u
se
Va
lu
e in u
s
e
Discount rate
– p
re-tax
13
.
2
%
10.
3
%
11
.
4
%
11.1
%
9.9
%
– p
o
s
t-
t
a
x
9.
5
%
8.2%
9.1
%
9.
0
%
8.0%
Perio
d covered by management projec
tions
5 y
e
ar
s
5 y
e
ar
s
5 ye
ar
s
5 ye
ar
s
5 ye
ar
s
Revenue – compound annual
grow
th rate over projection per
iod
6
.
4%
2.8
%
5.0
%
5
.9
%
5
.9
%
Av
er
age e
ar
n
in
gs b
efo
r
e inte
r
e
st a
nd t
a
x ma
r
gi
n
2
5.
4%
13
.
4%
2
0.0
%
1
9.
0
%
1
8.8%
Lo
ng
-te
r
m gr
o
w
th r
at
es
2
.1
%
1.
8
%
1.9
%
2.4
%
2.2%
For
e
c
as
t e
ar
ni
ngs b
efo
r
e inter
e
s
t and t
a
x ha
ve b
ee
n pr
oj
ec
te
d us
ing:
–
expe
c
ted f
u
tur
e s
a
le
s ba
s
ed o
n the s
t
r
ate
gic p
l
an
, w
hic
h w
as c
on
st
r
uc
te
d at a m
ar
ket le
v
el w
it
h inp
ut f
r
om ke
y acc
ount m
an
ag
er
s
, pr
o
du
c
t
lin
e ma
na
ger
s, bu
sin
e
ss d
e
vel
op
men
t and s
a
le
s tea
ms
. A
n a
ss
e
s
sm
ent of t
he ma
r
ket an
d ex
is
tin
g co
ntr
act
s
/pro
gr
amme
s w
as m
ad
e to
pr
od
uce t
he s
al
e
s for
e
c
as
t; an
d
–
cur
re
nt co
st s
t
r
uc
t
ur
e an
d pr
od
uc
ti
on c
ap
a
cit
y, whic
h inc
lu
de o
ur ex
pe
c
t
ati
ons f
or f
ut
ur
e co
s
t inf
l
ati
on
. T
he pr
o
je
c
tio
ns di
d not i
nc
lud
e th
e
imp
ac
t of f
u
tur
e r
e
s
tr
u
c
tur
i
ng p
r
oje
c
t
s to w
hic
h th
e Gr
ou
p w
as n
ot ye
t com
mit
ted.
Sensitiv
it
y anal
ysis
W
it
h the e
xcep
tio
n of th
e Smi
th
s De
tec
ti
on C
GU, th
e r
ec
ov
er
able am
ou
nt of al
l CG
Us exc
ee
de
d the
ir c
ar
r
y
in
g v
al
ue, o
n th
e ba
sis o
f the
as
su
mpti
on
s se
t ou
t in th
e ta
ble a
bo
v
e and a
ny r
ea
s
on
abl
y po
ss
ibl
e ch
ang
e
s the
r
eof.
Th
e e
s
tim
ated r
e
co
ve
r
ab
le am
ou
nt of th
e Smi
th
s Dete
c
ti
on C
GU e
xcee
de
d th
e c
ar
r
y
in
g v
alu
e by £1
10m. A
n
y de
cl
in
e in e
st
ima
ted v
al
ue
in us
e in e
xces
s o
f thi
s amo
unt w
ou
ld r
e
sul
t in th
e re
co
gn
iti
on of i
mp
air
m
ent c
har
g
es
. I
f the a
s
sum
pti
on
s us
ed i
n the i
mp
air
m
ent r
e
v
ie
w
we
re c
han
ge
d to a gr
e
ater ex
tent tha
n as p
re
s
ente
d in th
e fo
ll
ow
i
ng t
abl
e, th
e ch
ang
e
s wo
ul
d, in i
so
l
ati
on
, le
ad to im
p
air
m
ent lo
s
se
s b
ein
g
re
co
gni
s
ed fo
r th
e ye
ar en
de
d 31 Jul
y 2
0
2
2:
Ch
an
g
e r
eq
ui
r
e
d fo
r c
ar
r
y
in
g v
a
lu
e to e
q
ua
l r
ec
o
v
er
abl
e am
o
un
t – F
Y2
0
2
2
Smiths
Detection
Revenue – compound annual
grow
th rate (CAGR
) over 5-ye
ar projec
tion period
-
24
0 bps decrease
Av
er
age e
ar
n
in
gs b
efo
r
e inte
r
e
st a
nd t
a
x ma
r
gi
n
-
130 bps decrease
Post-tax d
iscount rate
+
7
0 bp
s in
cr
ea
s
e
No
te:
L
o
ng
-
te
r
m gr
o
w
th r
at
e
s ar
e n
ot i
nc
l
ud
e
d in t
he s
e
n
si
t
i
v
it
y ta
bl
e ab
o
v
e as m
a
na
g
em
e
nt c
on
si
d
er t
h
at t
he
r
e is n
o r
e
as
o
n
ab
ly p
o
s
si
b
le c
ha
n
ge i
n l
on
g
-te
r
m g
r
ow
th r
a
te t
ha
t w
ou
l
d r
es
u
lt i
n
an impairment.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
13
6
Ch
an
g
e r
eq
ui
r
e
d fo
r c
ar
r
y
in
g v
a
lu
e to e
q
ua
l r
ec
o
v
er
abl
e am
o
un
t – F
Y2
0
2
1
Smiths
Detection
Revenue – compound annual
grow
th rate (CAGR
) over 5-ye
ar projec
tion period
-
56
0 bps decrease
Post-tax d
iscount rate
+22
0 b
ps i
ncr
e
a
se
Proper
t
y
, plant a
nd equi
pment, righ
t of use assets and finite-life in
tangib
le asset
s
At e
ach r
e
po
r
ting p
er
i
od d
ate, th
e Gr
ou
p r
ev
i
ew
s t
he c
ar
r
y
in
g am
ount
s of it
s pr
op
er
t
y, pl
a
nt, e
qui
pme
nt, r
ight of us
e a
ss
et
s a
nd f
ini
te
-l
if
e
int
ang
ibl
e as
s
et
s to de
ter
mi
ne w
he
the
r the
r
e is an
y in
dic
at
ion t
hat t
hos
e a
s
set
s h
av
e su
f
f
er
ed a
n imp
ai
r
me
nt los
s
.
Th
e Gr
o
up ha
s no i
nd
efi
nite l
i
fe int
an
gib
le a
ss
et
s ot
he
r tha
n go
od
w
il
l
. D
ur
in
g th
e ye
ar
, imp
air
m
ent te
s
t
s we
r
e ca
r
r
ie
d o
ut fo
r c
api
t
al
is
ed
de
ve
lop
me
nt cos
t
s t
hat h
av
e not y
et s
t
ar
ted to be a
mo
r
tis
ed an
d ac
qui
re
d int
an
gib
le
s w
he
re t
he
re w
er
e in
di
ca
tio
ns of i
mp
air
m
ent
. Val
ue in
us
e c
alc
ul
ati
on
s we
r
e us
ed to d
eter
m
ine t
he r
e
cov
er
able v
a
lue
s of t
he
s
e as
s
et
s
.
In th
e cur
r
e
nt ye
ar th
e Gr
o
up ha
s r
ec
ogn
is
ed £17
m of imp
air
ment ch
ar
ge
s a
gai
ns
t it
s Rus
sia r
el
ated net b
al
a
nce s
he
et ex
po
sur
e
(F
Y
2
0
21: £nil
), s
ee b
el
ow.
Russia i
mpairment ch
arges and related closu
re cost
s
A
s a
nno
unc
ed i
n Mar
ch 2
0
2
2
, in t
he c
ur
r
ent y
ea
r the G
r
oup s
us
pe
nde
d s
al
es i
nto Ru
ss
ia
. Fol
lo
w
in
g th
is de
ci
sio
n th
e Smi
th
s De
tec
ti
on
re
po
r
ting s
tr
uct
ur
e ha
s be
en r
e
s
tr
u
c
tur
e
d an
d the D
ete
c
tio
n Ru
s
sia b
usi
ne
s
s spl
i
t into a s
ep
ar
ate CGU, £
4m o
f the D
ete
c
tio
n C
GU ha
s be
en
app
or
tio
ne
d to th
e Dete
c
ti
on Ru
s
sia C
GU a
nd f
ul
ly im
pa
ir
ed
.
Man
ag
eme
nt ha
s as
s
e
ss
e
d al
l Gr
ou
p op
er
at
io
ns fo
r th
eir ex
p
osu
r
e to Rus
s
ia an
d the v
alue of th
e
se R
us
si
a r
el
ate
d net a
s
se
t
s ha
s be
en
fu
lly i
mp
air
e
d in F
Y
2
0
2
2
. T
he G
r
oup h
as r
e
cog
nis
e
d £1
9m of R
us
si
a re
l
ated i
mp
air
m
ent c
har
g
e
s and c
lo
sur
e co
s
t
s thr
o
ugh n
on
-h
ea
dl
in
e
ope
r
at
ing e
xp
en
s
es i
n F
Y
2
0
2
2 (
se
e n
ote 3), w
hi
ch ar
e an
aly
s
e
d as fo
ll
o
w
s:
John Crane
£m
Smiths
Detection
£m
To
t
a
l
£m
Goodwill
–
4
4
Workin
g capital bal
ance
s
9
4
13
Net impairment charge
9
8
17
Related closure
cost
s
–
2
2
Russian impairm
ent and related closure costs
9
10
19
1
2 Proper
t
y
, p
l
ant a
nd equi
pmen
t
Land and
buildings
£m
Plant and
machiner
y
£m
Fixtures,
fit
tings,
to
ol
s and
equipment
£m
To
t
a
l
£m
Cost or valuation
At 31 J
uly 2
0
2
0
17
5
383
13
3
69
1
Foreign exchange
r
ate
movements
(6)
(
21)
(6)
(33)
Business combinations
–
2
–
2
Additions
6
38
–
44
Disposal
s
(3)
(
14
)
(5)
(22)
At 31 J
uly 2
0
21
17
2
388
12
2
682
Foreign exchange
r
ate
movements
14
37
6
57
Additions
4
42
6
52
Disposal
s
(
14
)
(10
)
(5
)
(
29)
At 31 J
uly 2
0
2
2
176
457
12
9
76
2
Depreciation
At 31 J
uly 2
0
2
0
10
2
2
61
11
0
47
3
Foreign exchange
r
ate
movements
(3)
(
15
)
(6)
(
24)
Cha
r
ge f
or t
he y
ea
r
10
26
4
40
Disposal
s
(3)
(
12
)
(4)
(19
)
At 31 J
uly 2
0
21
10
6
260
10
4
47
0
Foreign exchange
r
ate
movements
9
25
5
39
Cha
r
ge f
or t
he y
ea
r
7
24
7
38
Disposal
s
(
14
)
(10
)
(4)
(
28)
At 31 J
uly 2
0
2
2
10
8
299
112
519
Ne
t bo
ok v
a
lu
e a
t 31 Ju
ly 2
02
2
68
15
8
17
243
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
21
66
12
8
18
212
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
2
0
73
12
2
23
2
18
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
13
7
1
3 Right o
f use assets
Proper
tie
s
£m
Vehicles
£m
Equipment
£m
To
t
a
l
£m
Cost or valuation
At 31 J
uly 2
0
2
0
11
0
14
1
12
5
Foreign exchange
r
ate
movements
(5)
(
1)
–
(6)
Business combinations
9
1
–
10
Rec
og
ni
ti
on of r
ight of u
s
e as
s
et
44
3
–
47
De
r
ec
og
ni
ti
on of r
ight of u
s
e as
s
et
(12
)
–
–
(12
)
At 31 J
uly 2
0
21
14
6
17
1
16
4
Foreign exchange
r
ate
movements
12
1
–
13
Rec
og
ni
ti
on of r
ight of u
s
e as
s
et
18
4
–
22
De
r
ec
og
ni
ti
on of r
ight of u
s
e as
s
et
(2)
(1)
–
(3)
At 31 J
uly 2
0
2
2
174
21
1
196
Depreciation
At 31 J
uly 2
0
2
0
26
5
–
31
Foreign exchange
r
ate
movements
(2)
–
–
(2)
Cha
r
ge f
or t
he y
ea
r
27
5
–
32
De
r
ec
og
ni
ti
on of r
ight of u
s
e as
s
et
(5)
–
–
(5)
At 31 J
uly 2
0
21
46
10
–
56
Foreign exchange
r
ate
movements
5
1
–
6
Cha
r
ge f
or t
he y
ea
r
25
5
–
30
De
r
ec
og
ni
ti
on of r
ight of u
s
e as
s
et
(1)
(
1)
–
(2)
At 31 J
uly 2
0
2
2
75
15
–
90
Ne
t bo
ok v
a
lu
e a
t 31 Ju
ly 2
02
2
99
6
1
10
6
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
21
10
0
7
1
10
8
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
2
0
84
9
1
94
1
4 Fin
anci
al assets – othe
r investme
nts
Investment in
ICU Medical,
In
c eq
u
it
y
£m
Defer
re
d
contin
gent
consideration
£m
Investment
s
in e
ar
ly st
a
g
e
businesses
£m
Cash
collateral
deposit
£m
To
t
a
l
£m
Cost or valuation
At 31 J
uly 2
0
2
0
–
–
8
11
19
Disposal
s
–
–
–
(7
)
(7)
Fair value change through Other Comprehensi
ve Income
–
–
(1)
–
(1)
At 31 J
uly 2
0
21
–
–
7
4
11
Foreign exchange
r
ate
movements
–
–
1
–
1
Additions
426
30
4
–
4
60
Disposal
–
–
(4)
–
(4)
Fair v
alue c
ha
ng
e th
r
ou
gh P
r
of
it a
nd L
o
s
s
–
(
11
)
1
–
(10
)
Fair value change through Other Comprehensi
ve Income
(62)
–
(
1)
–
(63
)
At 31 J
uly 2
0
2
2
364
19
8
4
395
Fol
lo
w
in
g th
e s
ale of S
mi
th
s Me
dic
al t
he G
ro
up h
as r
ec
og
nis
e
d a fi
nan
cia
l as
s
et fo
r it
s i
nv
es
tm
ent i
n 10% of th
e eq
ui
t
y in I
CU M
ed
ic
al
, In
c
(I
CU
) an
d a fi
nan
ci
al as
s
et fo
r th
e fa
ir v
al
ue of $100
m ad
di
tio
na
l s
ale
s co
ns
ide
r
at
ion t
hat i
s co
ntin
gent o
n th
e fu
tu
re s
ha
re p
r
ic
e pe
r
for
ma
nce
of I
C
U.
Th
e Gr
o
up's inv
es
t
ment
s i
n ea
r
ly s
t
age b
us
ine
s
s
e
s ar
e in bu
sin
e
ss
e
s th
at ar
e de
v
elo
pin
g or c
omm
er
ci
al
isi
ng r
el
ate
d te
chn
ol
og
y.
Ca
sh c
oll
ater
al d
ep
osi
t
s r
ep
re
s
ent a
mou
nt
s he
ld on d
ep
os
it w
i
th b
ank
s a
s se
cu
r
it
y for l
ia
bil
it
ie
s or l
et
ter
s of cre
di
t
.
1
5 Inventor
ies
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Ra
w ma
ter
i
al
s a
nd c
on
s
uma
bl
e
s
18
7
11
7
Wor
k i
n pr
o
gr
e
s
s
10
6
81
Finished goods
277
18
3
T
otal inventories
570
3
81
In F
Y
2
0
2
2
, ope
r
at
ing c
os
t
s fo
r co
ntin
uin
g ope
r
at
io
ns in
clu
de
d £1
,
3
2
3
m (F
Y
2
0
21: £
1,2
3
3
m
) of inv
ento
r
y con
su
me
d, £12m (F
Y
2
0
21
: £8
m
) w
as
cha
r
ge
d for t
he w
r
i
te-
d
ow
n o
f inv
ento
r
y and £12m (F
Y
2
0
21
: £
4m
) w
a
s re
le
as
e
d fr
om p
r
ov
i
si
ons n
o lo
ng
er r
eq
uir
e
d.
Dis
co
ntin
ue
d op
er
ation
s con
su
me
d £9
5
m (F
Y
2
021
: £
218m
) of inv
ento
r
y, £nil (
F
Y
2
0
21
: £4
m
) w
as c
har
g
ed f
or th
e w
r
i
te-
d
ow
n of i
nv
ento
r
y and
£ni
l (F
Y
2
0
21: £
1
m
) w
as r
el
ea
se
d f
r
om pr
o
v
is
ion
s no l
on
ge
r re
qu
ir
ed
. Fur
the
r det
ail
s of dis
con
tinu
ed o
pe
r
at
ion
s ar
e di
sc
lo
se
d in n
ote 2
7
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
13
8
Inventor
y prov
isionin
g
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Gr
os
s i
nv
en
tor
y c
ar
ri
ed at f
u
ll v
a
lu
e
492
324
Gr
os
s v
alue o
f inv
e
ntor
y p
ar
tl
y or f
ul
ly p
r
ov
i
de
d f
or
131
10
4
623
428
Inventor
y provision
(5
3)
(
47
)
Inventor
y after provisions
570
381
1
6 T
r
ade and ot
her rec
eiv
ables
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Non-
current
T
rade re
ceiv
ables
1
–
Contrac
t asset
s
58
49
Other re
ceiv
able
s
10
10
69
59
Current
T
rade re
ceiv
ables
506
4
31
Prep
aym
ents
33
26
Contrac
t asset
s
12
7
131
Other re
ceiv
able
s
72
42
738
6
30
T
ra
de r
e
cei
v
a
bl
es d
o not c
a
r
r
y inter
e
s
t. M
ana
ge
men
t con
si
der
s that th
e c
ar
r
y
in
g v
alu
e of tr
ade an
d oth
er r
ec
ei
v
ab
le
s ap
pr
ox
imate
s to th
e
fa
ir v
al
ue. T
r
a
de a
nd ot
her r
e
cei
v
a
ble
s
, in
clu
din
g pr
e
pa
y
me
nt
s, a
ccr
ued in
co
me an
d oth
er r
ec
ei
v
ab
le
s qu
al
if
y
ing a
s f
ina
nci
al in
s
tr
um
ent
s
ar
e acc
ounte
d fo
r at am
or
tis
ed c
os
t
. T
he m
ax
imu
m cr
ed
it e
xp
os
ur
e ar
i
sin
g fr
o
m the
s
e f
ina
nc
ial a
s
set
s w
as £7
2
6m (
F
Y
2
0
21
: £62
9m).
Co
ntr
a
c
t as
s
et
s co
mp
r
is
e un
bil
le
d ba
l
anc
e
s not y
et du
e on co
ntr
act
s
, w
h
er
e r
ev
en
ue r
ec
og
nit
io
n do
es n
ot al
ig
n w
ith t
he a
gr
ee
d p
ay
m
ent
sc
he
dul
e. T
he m
ain m
ov
em
ent
s i
n the y
ea
r ar
os
e f
r
om in
cr
ea
s
es i
n cont
r
a
c
t as
s
et b
al
an
ce
s of £19m (F
Y
2
0
21
: £1
8m
) pr
incip
al
ly w
i
thi
n
Smi
th
s Dete
c
ti
on
, of
f
s
et b
y £1
5m of f
or
ei
gn cu
r
r
enc
y tr
an
sl
at
io
n los
s
e
s (F
Y
2
021
: £6
m lo
ss
).
A numb
er o
f Fl
ex-
T
ek
’s and Inter
co
nne
c
t
's cus
to
mer
s pro
v
id
e sup
pl
ie
r f
inan
ce s
ch
em
es w
h
ich a
ll
ow t
hei
r sup
pl
ier
s to sel
l tr
ade r
ec
ei
v
ab
le
s
,
w
ith
ou
t r
ec
our
se, to b
ank
s
. T
hi
s is co
mm
onl
y kn
ow
n a
s in
vo
ice d
is
cou
ntin
g or f
ac
to
r
in
g. D
ur
in
g F
Y
2
0
2
2 th
e Gr
o
up co
ll
ec
te
d £9
2
m of
re
ce
i
v
abl
es t
hr
ou
gh th
e
se s
ch
em
es (
F
Y
2
0
21
: £
9
0m
). T
he i
mp
ac
t of i
nv
oic
e dis
co
unt
ing o
n the F
Y
2
02
2 b
al
an
ce sh
ee
t w
as th
at tr
ade
re
ce
i
v
abl
es w
er
e r
e
duc
ed b
y £19m (2
0
21: £
14m). T
h
e c
ash r
e
cei
v
e
d v
ia th
es
e s
ch
eme
s w
a
s cl
a
s
si
fi
ed a
s an o
per
atin
g ca
sh i
nfl
ow a
s it h
ad
aris
en from oper
ating ac
tiv
itie
s.
T
ra
de r
e
cei
v
a
bl
es a
re d
is
cl
os
ed n
et of p
ro
v
is
io
ns fo
r ex
pe
c
ted c
r
ed
it lo
s
s
, w
it
h his
tor
ica
l w
r
ite
-
of
fs us
ed a
s a b
asi
s an
d a def
au
lt r
i
sk
mult
ipl
ie
r ap
pl
ie
d to re
fl
ec
t c
ount
r
y r
isk p
r
emi
um. C
re
di
t r
is
k is m
ana
ge
d s
ep
ar
ate
ly fo
r ea
ch c
us
tom
er an
d, w
h
er
e ap
pr
op
r
iate
, a cr
ed
it
lim
it i
s se
t for t
he c
us
tom
er b
as
ed o
n pr
e
v
io
us ex
p
er
ie
nce o
f the c
us
tom
er a
nd th
ir
d-
p
ar
t
y cr
e
di
t r
at
ing
s. T
h
e Gr
o
up ha
s no s
ign
if
ic
ant
con
cent
r
at
ion o
f cr
ed
it r
i
sk
, w
it
h ex
po
sur
e s
pr
ea
d o
ve
r a l
ar
ge n
umb
er of c
us
tom
er
s
. T
h
e l
ar
ge
s
t si
ngl
e cu
sto
me
r w
as t
he U
S Fed
er
al
Go
ve
r
nm
ent
, re
pr
e
s
enti
ng 7
% (
F
Y
2
0
21
: 7
%) o
f Gr
ou
p re
v
enu
e.
Ageing o
f trade receiv
ables
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
T
r
ad
e r
ec
ei
v
a
bl
e
s w
hic
h ar
e n
ot y
et du
e
3
96
338
T
r
ad
e r
ec
ei
v
a
bl
e
s w
hic
h ar
e b
et
we
en 1-3
0 d
ay
s o
v
er
du
e
51
45
T
r
ad
e r
ec
ei
v
a
bl
e
s w
hic
h ar
e b
et
we
en 31-6
0 d
ay
s o
v
er
du
e
24
15
T
r
ad
e r
ec
ei
v
a
bl
e
s w
hic
h ar
e b
et
we
en 6
1-90 d
ay
s o
v
er
du
e
11
8
T
r
ad
e r
ec
ei
v
a
bl
e
s w
hic
h ar
e b
et
we
en 91-
1
2
0 da
y
s ov
er
d
ue
7
5
T
r
ad
e r
ec
ei
v
a
bl
e
s w
hic
h ar
e m
or
e t
han 12
0 da
y
s ov
e
r
due
54
52
543
463
E
xpec
ted credit loss allowance provision
(36)
(32
)
T
rade receivables
507
4
31
Mo
vem
ent i
n ex
pe
c
ted c
re
di
t lo
s
s all
o
w
anc
e
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Br
ou
ght f
or
w
a
r
d lo
ss a
l
lo
w
an
ce at t
he s
t
ar
t of t
he p
er
i
o
d
32
35
Exchange adjustments
4
(2)
Inc
r
ea
s
e in al
l
ow
a
nc
e r
ec
og
ni
se
d in t
he i
nc
om
e s
ta
tem
ent
8
6
A
mo
unt
s w
r
it
ten o
f
f o
r r
ec
ov
e
re
d d
ur
in
g th
e y
ea
r
(8)
(7)
C
ar
r
i
ed f
o
r
war
d l
os
s a
ll
o
w
an
ce a
t th
e en
d of t
he y
e
ar
36
32
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
13
9
1
7 T
r
ade and o
ther payabl
es
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Non-
current
Other pay
ables
13
13
Contr
act liabili
ties
33
46
46
59
Current
T
rade payables
282
18
8
Other pay
ables
57
39
O
th
er t
ax
at
io
n an
d s
oc
ial s
e
cu
r
i
t
y c
os
t
s
30
28
Accr
uals
18
3
18
8
Contr
act liabili
ties
13
0
87
682
530
T
ra
de a
nd ot
her p
a
y
abl
e
s, i
ncl
udi
ng a
ccr
ued ex
pe
ns
e
s an
d oth
er p
ay
ab
le
s qu
al
if
y
ing a
s f
ina
nc
ial in
s
tr
u
ment
s
, a
re a
cco
unte
d for at
amo
r
tis
ed c
os
t an
d ar
e c
ateg
or
i
se
d a
s T
ra
de a
nd ot
her f
in
an
cia
l pa
y
ab
le
s in n
ote 21.
Co
ntr
a
c
t l
iab
il
iti
e
s com
pr
i
se d
efer
red i
nco
me b
al
a
nce
s of £163
m (
F
Y
2
0
21
: £1
3
3
m
) in r
es
pe
c
t of p
ay
m
ent
s b
ein
g ma
de in a
d
v
an
ce of r
e
ve
nue
re
co
gni
ti
on
. T
he m
ov
em
ent in th
e y
ear a
r
is
e
s pr
i
mar
ily fr
om t
he l
on
g-te
r
m con
tr
a
c
t
s of th
e Sm
ith
s D
etec
t
ion d
i
v
isi
on w
h
er
e inv
oicin
g under
mile
s
ton
e
s pr
ec
ed
e
s the d
el
i
ve
r
y of the p
r
og
r
am
me p
er
for
m
anc
e ob
li
gat
ion
s
. Rev
enu
e r
ec
ogn
is
ed i
n the y
e
ar in
clu
de
s £1
1
3m (
F
Y
20
2
1
: £
94m
)
that w
as inc
lud
ed i
n the o
pe
nin
g cont
r
a
c
t li
abi
li
ti
es b
al
a
nce
. T
hi
s re
v
enu
e pr
i
mar
i
ly r
el
ate
s to th
e de
li
v
er
y of p
er
for
m
an
ce ob
li
gat
ion
s in t
he
Smi
th
s Dete
c
ti
on b
usi
ne
s
s.
1
8 Bor
row
ings a
nd net d
ebt
Th
is n
ote s
et
s ou
t the c
a
lcu
l
ati
on of n
et de
bt, a
n imp
or
ta
nt me
as
ur
e in ex
pl
a
ini
ng ou
r f
inan
ci
ng p
osi
ti
on
. Net d
ebt in
clu
de
s a
ccr
u
ed i
nter
e
st
and f
ai
r v
alu
e ad
jus
tm
ent
s r
el
ating to h
ed
ge ac
cou
ntin
g.
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
C
as
h an
d c
a
sh e
qu
i
v
al
en
t
s
Net c
a
sh a
nd d
ep
os
it
s
1,
0
5
6
4
05
Shor
t-term
borr
owings
€6
00
m 1.2
5
% Eur
o
bo
nd 2
02
3
(502)
–
O
ver
dr
af
ts
(1)
–
Lease liabil
ities
(2
9)
(
27)
Interest accrual
(6)
(9)
(5
38)
(3
6)
Long-term borrowings
$
4
00
m 3
.6
2
5% U
S
$ G
ua
r
a
nte
ed n
ote
s 2
0
2
2
–
(
28
9)
€6
00
m 1.2
5
% Eur
o
bo
nd 2
02
3
–
(
5
16
)
€6
5
0m 2
.0
0% E
ur
ob
on
d 2
0
2
7
(5
38)
(
5
67
)
Lease liabil
ities
(90)
(94
)
(62
8)
(1,
4
6
6)
Borrowings / Gross
debt
(
1
,1
6
6
)
(1,
5
02
)
De
r
i
v
at
i
ve
s m
an
ag
in
g inte
re
s
t r
ate r
is
k an
d cur
ren
c
y p
r
of
il
e of th
e de
bt
(40)
75
Ne
t ca
s
h
/(d
e
bt
) (
31 Ju
ly 2
0
21 co
mp
ar
ati
ve e
xc
lu
de
s £
4
m o
f ne
t c
as
h i
n bu
si
ne
s
s
e
s he
ld f
o
r s
al
e)
(15
0
)
(1,
0
2
2
)
Cash and cash equivalents
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Ca
sh a
t ba
nk a
nd i
n ha
nd
242
219
Shor
t-term deposit
s
814
18
6
C
as
h an
d c
a
sh e
qu
i
v
al
en
t
s
1,
0
5
6
4
05
Ca
sh an
d c
as
h eq
ui
v
al
ent
s in
clu
de h
igh
ly l
iqu
id in
ve
s
tm
ent
s w
i
th mat
ur
i
tie
s of t
hr
ee m
ont
hs o
r le
s
s. B
or
ro
w
ing
s ar
e ac
cou
nted fo
r
at amo
r
tis
ed c
os
t an
d ar
e c
ateg
or
i
s
ed a
s oth
er f
ina
nci
al l
iab
il
it
ie
s
. Se
e n
ote 18 for a mat
ur
it
y ana
ly
si
s of bo
r
r
ow
i
ng
s. I
nter
e
st o
f £
3
0m
(F
Y
2
0
21: £3
0
m) w
a
s ch
ar
ge
d to th
e con
s
ol
id
ated i
nco
me s
t
atem
ent in t
he p
er
io
d in r
e
sp
ec
t o
f pub
li
c bo
nd
s.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
14
0
A
nalysis
of financial
der
i
v
ative
s on
bal
ance she
et
Non-curr
ent
ass
ets
£m
Current
ass
ets
£m
Current
liabilities
£m
Non-curr
ent
liabilities
£m
Net balance
£m
De
r
i
v
at
i
ve
s m
an
ag
in
g inte
re
s
t r
ate r
is
k an
d cur
ren
c
y p
r
of
il
e of th
e de
bt
–
–
(20)
(20)
(40)
Foreign exchange
for
w
ard contrac
ts
–
4
(7)
–
(3)
At 31 J
uly 2
0
2
2
–
4
(27)
(
20)
(4
3)
De
r
i
v
at
i
ve
s m
an
ag
in
g inte
re
s
t r
ate r
is
k an
d cur
ren
c
y p
r
of
il
e of th
e de
bt
75
–
–
–
75
Foreign exchange
for
w
ard contrac
ts
–
2
(3)
–
(
1)
At 31 J
uly 2
0
21
75
2
(
3)
–
74
Movement
s in a
ss
et
s
/(l
iabilitie
s) ar
ising
fr
om financ
ing ac
ti
v
itie
s
Changes in
net deb
t
Changes in
other financing
items:
FX
contract
s
£m
Cash
and cash
equivalent
s
£m
Other
shor
t-term
borr
ow
ings
£m
Lon
g-ter
m
borr
ow
ings
£m
Inter
es
t rate
& cross-
curr
enc
y
swaps
£m
Net debt
£m
To
t
a
l
liabilities
from financing
activ
ities
£m
At 31 J
uly 2
0
2
0
366
(
41
)
(1,5
20
)
82
(
1
,11
3
)
(2)
(
1
,11
5
)
Foreign exchange
gains/(
losse
s)
(24
)
2
79
–
57
(3,20
0)
(3,
143)
Net cash in
flow from continuing operations *
6
3
3
3
–
–
96
3,2
0
0
3,296
Lease liabil
ities acquired
–
(
1)
(10
)
–
(
11)
–
(
11
)
Net m
o
ve
me
nt f
ro
m le
a
se m
o
di
fi
c
at
io
ns
–
(4
6)
–
–
(4
6)
–
(4
6)
Fair v
alue m
o
ve
me
nt f
ro
m int
er
e
s
t r
ate h
e
dg
ing
–
–
8
–
8
–
8
Revaluation of deriv
ati
ve contrac
ts
–
–
–
(7)
(7
)
3
(4)
Inte
re
s
t e
xp
en
s
e t
aken t
o inc
om
e s
ta
tem
ent
*
*
–
(4)
(
31)
–
(35)
–
(35)
In
te
rest pa
id
–
–
2
9
–
29
–
2
9
Reclas
sific
ation to short-term borr
ow
ings
–
21
(
21)
–
–
–
–
At 31 J
uly 2
0
21
405
(3
6)
(
1,
4
6
6
)
75
(
1,
0
2
2
)
1
(1
,
0
2
1)
Foreign exchange
gains/(
losse
s)
62
(
3)
4
–
63
(6
,7
9
9
)
(
6
,7
3
6
)
Net cash in
flow from continuing operations *
589
34
295
–
918
6
,7
9
9
7,
7
17
Net m
o
ve
me
nt f
ro
m le
a
se m
o
di
fi
c
at
io
ns
–
(22)
–
–
(22)
–
(22)
Fair v
alue m
o
ve
me
nt f
ro
m int
er
e
s
t r
ate h
e
dg
ing
–
2
27
–
29
–
29
Revaluation of deriv
ati
ve contrac
ts
–
–
–
(
11
5
)
(
11
5
)
(4)
(
11
9
)
Inte
re
s
t e
xp
en
s
e t
aken t
o inc
om
e s
ta
tem
ent
*
*
–
(35)
–
–
(3
5)
–
(35)
In
te
rest pa
id
–
–
34
–
34
–
34
Reclas
sific
ation to short-term borr
ow
ings
–
(
47
8
)
478
–
–
–
–
At 31 J
uly 2
0
2
2
1,
0
5
6
(5
3
8)
(628
)
(
4
0)
(15
0)
(3)
(15
3)
*
I
n F
Y2
1, th
e n
et c
a
sh i
nf
l
o
w fo
r th
e to
t
al G
r
ou
p i
nc
lu
d
in
g di
s
co
nt
i
nu
e
d op
e
r
at
i
on
s w
a
s £
91m. £
6
3
m f
r
o
m co
nt
in
ui
n
g op
e
r
at
i
on
s a
nd £
2
8m f
r
om d
is
c
on
ti
n
ue
d o
pe
r
a
ti
o
ns
. I
n F
Y2
2
, t
he n
e
t
ca
s
h in
f
lo
w f
or t
h
e tot
a
l Gr
o
u
p in
cl
u
di
ng d
i
sc
o
nt
in
ue
d o
pe
r
a
ti
o
ns w
as £
5
8
9
m, £
5
7m o
f w
hi
ch r
e
l
a
te
d to t
he c
a
s
h he
ld b
y t
h
e Sm
i
th
s Me
d
ic
a
l at t
h
e ti
me o
f di
s
po
s
a
l
.
*
* Th
e G
r
ou
p ha
s a
l
s
o in
c
ur
r
e
d £
8
m (
F
Y2
0
2
1: £9m
) o
f b
an
k ch
a
r
ge
s t
ha
t w
er
e e
x
pe
n
s
ed w
h
e
n pa
i
d an
d w
er
e n
ot i
nc
l
ud
e
d in n
et d
e
bt
.
Cash pooling
Ca
sh an
d o
ve
rd
r
af
t bal
a
nce
s in i
nter
e
st c
om
pen
s
ati
on c
a
sh p
oo
li
ng s
y
s
tem
s ar
e r
ep
or
ted gr
o
ss o
n th
e ba
l
anc
e she
et
. T
he c
a
sh p
oo
li
ng
agr
e
eme
nt
s in
cor
p
or
ate a leg
al
ly enf
or
ce
abl
e r
ig
ht of net s
et
t
lem
ent
. Ho
w
ev
er
, as th
er
e is n
o inte
ntio
n to se
t
tl
e the b
al
a
nce
s n
et, t
he
s
e
ar
r
a
ng
eme
nt
s do n
ot qu
al
if
y for n
et pr
e
s
ent
ati
on
. At 31 Ju
ly 2
0
2
2 th
e tot
al v
al
ue of o
ve
r
dr
af
t
s on ac
cou
nt
s in inte
re
s
t co
mp
en
s
atio
n c
ash
po
ol
in
g s
y
ste
ms w
a
s £n
il (
F
Y
2
0
21
: £ni
l
). T
he b
al
ance
s he
ld in ze
r
o ba
l
anc
ing c
a
sh p
oo
l
ing a
r
r
a
nge
me
nt
s ha
ve d
aily s
et
t
le
ment o
f ba
l
anc
es
.
Th
er
efo
r
e net
t
in
g is no
t re
le
v
ant
.
Secured loans
Lo
an
s am
ount
ing to £
nil (
F
Y
2
0
21
: £n
il
) wer
e s
ec
ur
ed o
n pl
a
nt and e
qu
ipm
ent w
i
th a bo
ok v
alue of £
nil (
F
Y
2
0
21
: £n
il
).
Change
of contro
l
Th
e C
omp
an
y ha
s in pl
ace cr
ed
it f
a
cil
it
y agr
e
eme
nt
s un
der w
h
ich a c
ha
nge i
n cont
r
ol w
oul
d tr
igge
r pr
ep
ay
m
ent c
l
aus
e
s
. T
he C
om
pa
ny al
so
has b
on
ds i
n is
su
e, th
e ter
m
s of w
hi
ch w
oul
d al
lo
w bo
nd
ho
lde
r
s to exe
r
cis
e pu
t op
tio
ns a
nd r
eq
uir
e th
e C
omp
an
y to bu
y b
ac
k the b
on
ds at
the
ir pr
i
nci
pa
l am
ount p
lus i
nter
e
st i
f a r
at
in
g do
w
ngr
ade o
cc
ur
s at th
e s
am
e tim
e as a c
han
ge of c
ont
ro
l t
akes e
f
fe
c
t
.
Leas
e l
iabilitie
s
Le
as
e l
iab
il
iti
e
s ha
ve b
ee
n me
as
ur
ed at t
he p
re
s
ent v
a
lue of t
he r
em
ain
ing l
ea
s
e pa
y
me
nt
s. T
h
e we
ighte
d a
ver
age i
ncr
em
ent
al b
or
r
o
w
in
g
r
ate ap
pl
ie
d to le
as
e l
iab
il
it
ie
s in F
Y
2
0
2
2 w
a
s 3.
6
3
% (
F
Y
2
0
21
: 3.
3
%).
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
141
1
9
F
inancial r
isk
management
Th
e Gr
o
up’
s inter
natio
nal o
pe
r
at
ion
s an
d de
bt f
ina
nci
ng e
xp
os
e it to f
in
an
cia
l r
is
ks w
h
ich i
ncl
ud
e the e
f
fe
c
t
s of c
han
ge
s in fo
r
eig
n exch
ang
e
r
ate
s
, deb
t mar
ket pr
ice
s
, inter
e
s
t r
ate
s
, cr
e
di
t r
is
ks a
nd l
iq
uid
it
y ri
sk
s
. T
he m
ana
ge
ment o
f op
er
a
tio
nal c
r
edi
t r
i
sk is d
is
cu
ss
e
d in n
ote 1
6.
T
reas
ur
y Risk Man
agement Pol
ic
y
Th
e B
oa
rd m
aint
ai
ns a T
re
a
sur
y Ri
sk M
ana
ge
ment P
ol
ic
y
, w
hic
h go
ve
r
n
s the t
re
a
sur
y op
er
ation
s of th
e Gr
o
up an
d it
s s
ubs
idi
ar
y co
mp
anie
s
and t
he co
ns
ol
i
date
d fi
nan
ci
al r
is
k pr
of
il
e to be m
aint
ain
ed
. A r
ep
or
t on tr
e
as
ur
y ac
ti
v
i
ti
es
, f
in
anc
ial m
etr
i
c
s an
d com
pl
ia
nce w
i
th th
e Po
li
c
y
is ci
rc
ul
ate
d to th
e Chie
f F
ina
nci
al O
f
f
i
cer e
ac
h mon
th an
d key el
em
ent
s to th
e Au
di
t an
d Ris
k Co
mmi
t
te
e on a s
emi
-a
nnu
al b
asi
s
.
Th
e Po
l
ic
y m
aint
ain
s a tr
e
as
ur
y cont
r
ol f
r
a
me
wo
r
k w
it
hin w
h
ich c
ounte
r
p
ar
t
y r
i
sk
, f
ina
nci
ng a
nd de
bt s
tr
ateg
y, cas
h an
d li
qui
dit
y, intere
s
t
r
ate r
i
sk an
d cu
r
r
enc
y tr
an
sl
at
ion m
an
ag
eme
nt ar
e r
es
e
r
ved f
or G
ro
up T
re
as
ur
y, whi
le c
ur
r
en
c
y tr
ans
ac
t
io
n man
ag
eme
nt is d
ev
ol
ve
d to
oper
ating divisions.
Ce
ntr
a
ll
y dir
ec
te
d c
as
h ma
nag
em
ent s
y
s
tem
s ex
is
t gl
ob
al
ly to ma
na
ge o
ve
r
al
l l
iqu
id r
e
so
ur
ce
s ef
f
i
cie
ntly a
cr
os
s t
he di
v
i
si
ons
. T
h
e Gr
ou
p
us
es f
in
an
cia
l ins
t
r
ume
nt
s to r
a
is
e f
ina
nci
ng fo
r it
s g
lob
al o
pe
r
at
ion
s
, to man
ag
e r
el
ate
d inter
e
s
t r
ate a
nd c
ur
r
en
c
y f
in
anc
ial r
i
sk
, an
d to
hedge tr
ans
actio
n risk wi
thin subsidiar
y companie
s.
Th
e Gr
o
up do
e
s not s
pe
cu
l
ate in f
ina
nc
ial in
s
tr
u
ment
s
. A
l
l fi
nan
ci
al in
st
r
um
ent
s h
ed
ge ex
is
t
ing b
us
ine
s
s ex
po
su
re
s an
d al
l ar
e r
ec
og
nis
e
d
on th
e ba
l
anc
e sh
eet
.
Th
e Po
l
ic
y d
ef
ine
s fo
ur tr
e
as
ur
y r
is
k com
po
nen
t
s and f
or e
ach c
omp
on
ent a s
et of f
in
anc
ial m
etr
ics to b
e me
a
sur
e
d and r
e
po
r
ted mont
hly
against
pre-agreed ob
jectives
.
1
) Credit qualit
y
Th
e Gr
o
up’
s s
tr
a
teg
y i
s to main
ta
in a so
l
id in
ve
s
tm
ent-g
r
a
de r
a
tin
g to ens
ur
e ac
ce
s
s to the w
i
de
s
t po
s
sib
le s
our
ce
s of f
in
an
cin
g at th
e
r
ight t
ime a
nd to o
ptim
is
e th
e re
s
ult
ing c
os
t of de
bt c
ap
it
al
. T
h
e cr
e
dit r
ating
s at th
e en
d of Jul
y 2
0
2
2 we
r
e BBB
+ / B
aa
2 (b
oth s
t
ab
le
) fr
o
m
St
and
ar
d & Po
or
’s and Mo
od
y
’s re
sp
ec
t
i
vel
y. An e
s
s
ent
ial el
em
ent of an i
nv
e
st
men
t-gr
ade r
at
in
g is co
ns
is
tent an
d r
ob
us
t c
as
h-f
lo
w m
etr
i
c
s
.
Th
e Gr
o
up’
s ob
je
c
ti
ve i
s to ma
int
ain a n
et deb
t
/
hea
dl
ine E
BI
T
D
A r
at
io of t
wo ti
me
s or l
ow
er o
ve
r th
e me
dium te
r
m. C
a
pit
al m
an
ag
eme
nt is
dis
cu
s
se
d in m
or
e de
tai
l in no
te 26.
2) D
eb
t and i
ntere
s
t r
ate
Th
e Gr
o
up’
s r
is
k ma
nag
em
ent ob
je
c
ti
v
es a
r
e to ens
ur
e th
at th
e maj
or
i
t
y of fun
din
g is dr
aw
n fr
o
m th
e pub
li
c deb
t mar
kets w
i
th th
e av
er
age
mat
ur
it
y pr
of
ile o
f gr
os
s de
bt to b
e at or gr
e
ater t
han t
hr
ee y
e
ar
s
, an
d bet
we
en 4
0-
6
0
% of gr
o
s
s deb
t is at f
ixe
d r
a
tes
. A
t 31 July 2
02
2 th
e
se
me
asu
r
es w
er
e 10
0
% (F
Y
2
021
: 100
%
), 2
.7 year
s (F
Y
2
0
21
: 3.
2 ye
ar
s
) an
d 5
0
% (
F
Y
2
0
21
: 5
4%). T
h
e av
er
age mat
ur
i
t
y prof
il
e of gr
o
ss d
ebt i
s
bel
o
w the t
ar
g
et of th
r
ee y
ea
r
s be
c
au
se t
he n
et c
ash r
e
s
our
ce
s of £1,05
5
m ar
e s
uf
fic
ient to c
ov
er t
he sh
or
t-ter
m bo
r
r
o
w
ing
s of £
5
3
8m.
Th
e Gr
o
up r
em
ain
s in f
ull c
omp
l
ian
ce w
it
h al
l co
ve
nant
s w
i
th
in it
s e
x
ter
nal de
bt ag
re
em
ent
s
. Inte
re
s
t r
ate r
isk ma
nag
em
ent i
s dis
cu
s
se
d
in note 19(
b).
3) Liquidit
y management
Th
e Gr
o
up’
s ob
je
c
ti
ve i
s to en
sur
e t
hat at a
ny ti
me un
dr
awn c
om
mit
ted fa
cil
i
tie
s
, ne
t of sh
or
t-ter
m ov
er
dr
af
t f
ina
nci
ng
, ar
e at le
as
t £
3
0
0m
and t
hat c
omm
it
te
d f
ac
ili
ti
es h
av
e at l
ea
st 12 month
s to r
u
n until m
atu
r
it
y. At 31 July 2
0
2
2
, th
e
se m
ea
sur
e
s w
er
e £6
5
7m (F
Y
2
0
21: £57
5
m)
and 2
7 m
onth
s (
F
Y
2
0
21
: 39 m
ont
hs
). At 31 Ju
ly 2
0
2
2
, net c
a
sh r
e
so
ur
ce
s we
r
e £1
,0
5
5
m (F
Y
2
021
: £4
05
m
). L
iqui
di
t
y r
isk man
ag
em
ent is
dis
cu
s
se
d in n
ote 19(d).
4) Currenc
y management
Th
e Gr
o
up is a
n inter
n
ati
on
al bu
sin
es
s w
i
th t
he ma
jo
r
it
y of it
s n
et as
s
et
s de
no
min
ated i
n for
ei
gn cu
r
r
enc
y. It pr
otec
t
s t
he b
al
an
ce s
he
et
and r
e
s
er
ve
s f
r
om a
d
ve
r
s
e for
ei
gn exc
han
ge m
ov
em
ent
s b
y f
ina
nci
ng fo
r
eig
n cur
r
e
nc
y a
s
s
et
s w
he
re a
pp
ro
pr
i
ate in th
e s
am
e cur
r
e
nc
y.
Th
e Gr
o
up’
s ob
je
c
ti
ve f
or m
ana
gin
g tr
ans
ac
t
ion c
ur
r
en
c
y e
xp
os
ur
e is to r
e
duc
e me
dium
-te
r
m vo
l
ati
li
t
y to c
a
sh
-f
lo
w, mar
g
ins a
nd e
ar
ni
ng
s.
For
ei
gn exc
han
ge r
isk man
ag
em
ent is d
is
cu
s
se
d in n
ote 18(
a) b
el
ow.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
14
2
(a) For
eign exchange risk
T
r
ans
ac
tional currenc
y exposure
Th
e Gr
o
up is e
xp
os
e
d to for
ei
gn c
ur
r
en
c
y r
i
sk
s ar
i
sin
g fr
o
m s
ale
s o
r pur
ch
as
e
s by b
us
ine
s
s
es i
n cur
ren
cie
s oth
er t
han t
hei
r fu
nc
ti
on
al
cur
r
e
nc
y. It i
s Gr
o
up po
li
c
y t
hat
, w
he
n the n
et fo
re
ign e
xcha
ng
e ex
po
sur
e to k
no
w
n f
ut
ur
e s
ale
s an
d pu
rc
ha
se
s i
s mater
ial
, thi
s ex
po
sur
e
is he
dg
ed u
sin
g fo
r
w
ar
d for
e
ign e
xcha
ng
e cont
r
a
c
t
s. T
h
e net e
xp
os
ur
e is c
al
cul
ated by a
dju
s
tin
g the e
xp
e
c
ted c
a
sh-
fl
ow f
or p
ay
m
ent
s o
r
re
ce
ipt
s in t
he s
am
e cu
r
r
enc
y linke
d to th
e s
ale o
r pur
ch
as
e
. Th
is p
ol
ic
y minimi
s
es t
he r
i
sk th
at th
e pr
of
i
t
s gen
er
ated fr
o
m the t
r
a
ns
ac
t
io
n
w
ill b
e af
fec
ted b
y fo
r
eign e
xch
ang
e mo
ve
me
nt
s w
hic
h oc
cur af
ter the p
r
ic
e ha
s be
en d
eter
m
ine
d. H
ed
ge a
cco
untin
g do
cu
men
tat
ion a
nd
ef
fe
c
ti
v
en
es
s te
s
ti
ng ar
e o
nly un
de
r
taken i
f it i
s co
st ef
fec
t
i
ve
.
Th
e fo
ll
ow
i
ng t
abl
e sh
ow
s t
he c
ur
r
en
c
y of f
in
anc
ial i
ns
tr
ument
s
. It e
xclu
de
s lo
an
s an
d de
r
i
v
ati
v
e
s de
si
gnate
d as n
et in
ve
s
tm
ent h
ed
ge
s
.
At 31 J
u
ly 2
0
22
Sterling
£m
US$
£m
Euro
£m
Other
£m
To
t
a
l
£m
Financial asset
s and liabilities
F
ina
nc
ia
l in
st
r
u
me
nt
s in
cl
ud
ed i
n tr
ade an
d ot
he
r r
ec
ei
v
a
bl
es
41
423
11
4
169
747
F
ina
nc
ia
l in
st
r
u
me
nt
s in
cl
ud
ed i
n tr
ade an
d ot
he
r pa
y
a
bl
es
(52
)
(
23
9)
(9
8)
(101)
(49
0
)
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
355
5
06
74
12
0
1,
0
5
5
Borr
owings not designat
ed as ne
t investment hedges
(2
8)
(5
8)
(
14
)
(19
)
(
11
9
)
316
632
76
16
9
1
,1
9
3
E
xc
lud
e b
al
a
nc
es h
el
d in o
pe
r
a
ti
on
s w
it
h th
e s
am
e f
unc
t
io
na
l cu
r
r
en
c
y.
(
322)
(
149
)
(80)
(14
2
)
(
69
3)
E
x
po
su
r
e ar
i
si
ng f
r
om i
ntr
a-
Gr
o
up lo
a
ns
–
(
419
)
(27
)
(8
9)
(535)
Future for
war
d foreign ex
change contract cash-f
lows
(42)
(40)
(3
8)
12
0
–
(4
8)
2
4
(69)
5
8
(35
)
At 3
1 Ju
ly 2
0
2
1
Ster
lin
g
£m
US$
£m
Euro
£m
Other
£m
To
t
a
l
£m
Financial asset
s and liabilities
F
ina
nc
ia
l in
st
r
u
me
nt
s in
cl
ud
ed i
n tr
ade an
d ot
he
r r
ec
ei
v
a
bl
es
28
326
11
3
17
7
644
F
ina
nc
ia
l in
st
r
u
me
nt
s in
cl
ud
ed i
n tr
ade an
d ot
he
r pa
y
a
bl
es
(
49
)
(167
)
(
79)
(64
)
(
359)
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
46
18
7
80
92
4
05
Borr
owings not designat
ed as ne
t investment hedges
(
3
1)
(55)
(12
)
(
21)
(
11
9
)
(6)
2
91
10
2
18
4
571
E
xc
lud
e b
al
a
nc
es h
el
d in o
pe
r
a
ti
on
s w
it
h th
e s
am
e fu
nc
t
io
na
l cu
r
r
en
c
y
7
(
11
0
)
(80)
(18
3
)
(366)
E
x
po
su
r
e ar
i
si
ng f
r
om i
ntr
a-
Gr
o
up lo
a
ns
–
(18
2
)
(
19
)
(75)
(
2
76
)
Future for
war
d foreign ex
change contract cash-f
lows
(51)
(
67
)
22
96
–
(50)
(6
8)
25
22
(
71)
F
ina
nci
al in
s
tr
um
ent
s in
cl
ud
ed in t
r
a
de an
d oth
er r
ec
ei
v
ab
le
s co
mp
r
is
e tr
ade r
ec
ei
v
ab
le
s
, acc
r
ue
d in
com
e an
d oth
er r
ec
ei
v
ab
le
s w
hic
h
qua
li
f
y as fi
nan
ci
al in
st
r
um
ent
s
. Si
mil
a
r
ly, fin
an
cia
l ins
tr
ument
s i
ncl
ud
ed in t
r
a
de an
d oth
er p
ay
a
bl
es c
omp
r
is
e tr
ade p
ay
able
s
, acc
r
ue
d
ex
pen
s
es a
nd ot
her p
a
y
abl
e
s tha
t qua
li
f
y as fi
nan
ci
al in
st
r
um
ent
s
.
Ba
s
ed on t
he a
s
se
t
s and l
ia
bil
i
tie
s he
ld at t
he y
ea
r-
e
nd
, if th
e sp
ec
if
ie
d cu
r
r
enc
ie
s w
er
e to s
tr
en
gth
en 10
% w
hile a
ll ot
her m
ar
ket
r
ate
s r
ema
ine
d co
ns
t
ant
, the c
ha
ng
e in th
e fa
ir v
al
ue of f
in
anc
ial i
ns
tr
ument
s n
ot de
si
gna
ted a
s net in
ve
s
tm
ent h
ed
ge
s w
oul
d ha
ve t
he
follo
wing ef
fe
ct:
Impact on
profit
fo
r t
he y
e
ar
FY2
022
£m
Gain/(loss)
recognised in
reserves
FY2
022
£m
Impact on
prof
it
fo
r th
e y
ea
r
F
Y
20
21
£m
Gain/
(los
s)
recognised
in
reserves
F
Y
20
21
£m
US dollar
(3)
1
3
2
Euro
8
(1)
2
(5
)
Ster
l
in
g
4
–
(1)
2
Th
e
se s
en
si
ti
v
i
tie
s w
er
e c
al
cul
ate
d b
efor
e a
dju
st
ing f
or t
a
x and e
xclu
de t
he ef
fec
t of qu
as
i-
eq
ui
t
y in
tr
a
-
Gr
ou
p lo
an
s.
Cash-flow hedging
Th
e Gr
o
up us
e
s for
w
a
r
d for
ei
gn exc
han
ge c
ont
r
ac
t
s to h
ed
ge f
u
tur
e fo
r
eig
n cur
renc
y sa
le
s an
d pur
ch
as
e
s
. At 31 Ju
ly 2
0
2
2
, cont
r
a
c
t
s w
it
h a
nom
ina
l v
alu
e of £14
1
m (F
Y
2
0
21
: £1
07m
) we
re d
e
sig
nate
d as h
ed
gin
g in
st
r
um
ent
s
. In a
ddi
ti
on, t
he G
r
oup h
ad o
ut
s
t
and
in
g for
ei
gn cu
r
r
enc
y
cont
r
a
c
t
s w
ith a n
om
ina
l v
alu
e of £
2
2
6m (
F
Y
2
0
21
: £
251
m) w
h
ich w
er
e b
ein
g us
e
d to man
ag
e tr
a
ns
a
c
tio
na
l for
ei
gn exc
han
ge e
xp
os
ur
e
s, b
ut
we
re n
ot ac
cou
nted f
or as c
a
sh
-f
lo
w he
dg
es
. T
h
e f
air v
al
ue of t
he co
ntr
act
s is dis
cl
os
ed i
n note 2
0
.
Th
e ma
jor
it
y of h
ed
ge
d tr
ans
ac
t
io
ns w
il
l be r
e
co
gni
se
d in t
he co
ns
ol
i
date
d inc
ome s
t
atem
ent i
n the s
a
me p
er
i
od th
at th
e c
as
h-f
lo
w
s ar
e
ex
pe
c
ted to o
cc
ur
, wit
h th
e onl
y dif
fer
enc
e
s ar
is
in
g be
c
aus
e of n
or
m
al co
mm
er
cia
l cr
ed
it ter
ms on s
al
es a
nd p
ur
cha
s
es
. I
t is th
e Gr
o
up’
s
po
li
c
y to he
d
ge 8
0
% of c
er
tai
n ex
po
sur
e
s fo
r the n
ex
t t
wo y
e
ar
s an
d 5
0
% of h
igh
ly pr
o
ba
ble e
xp
os
ur
e
s for t
he ne
x
t 12 month
s
.
Hedge ef
fecti
vene
ss is determined at the inception of
the hedge rel
ationship, and through perio
dic prospec
ti
ve effe
cti
vene
ss as
ses
sment
s
to ens
ur
e th
at an e
con
om
ic r
el
at
ion
sh
ip ex
is
t
s b
et
w
e
en th
e he
dg
ed i
tem an
d he
dg
ing i
ns
tr
ument
. T
he f
or
ei
gn exch
an
ge fo
r
w
ar
d co
ntr
a
c
t
s
hav
e si
mil
a
r cr
i
tic
a
l ter
m
s to the h
ed
ge
d ite
ms
, su
ch a
s th
e noti
on
al am
oun
t
s and m
atu
r
it
ie
s. T
h
er
efo
r
e, th
er
e is a
n ec
ono
mic r
e
l
ati
ons
hip
and t
he h
ed
ge r
a
tio i
s e
st
ab
li
sh
ed a
s 1
:
1.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
14
3
Th
e ma
in s
our
ce
s of h
ed
ge in
ef
f
ec
t
i
ve
ne
s
s in th
e
se h
ed
gin
g r
el
ati
on
shi
ps ar
e t
he ef
fec
t of th
e Gr
o
up's and th
e co
unter
p
ar
t
y c
r
ed
it r
i
sk
s
on th
e f
air v
al
ue of t
he fo
r
eig
n exch
ang
e fo
r
wa
r
d cont
r
a
c
t
s
, w
hic
h is no
t re
fl
ec
te
d in th
e f
air v
a
lue of t
he h
ed
ge
d ite
m and t
he r
i
sk of
ov
er
-h
ed
gin
g w
he
re t
he h
ed
ge r
el
a
tio
ns
hip r
eq
uir
e
s r
e-
b
al
an
cin
g. N
o oth
er s
our
ce
s of i
nef
fec
ti
v
en
es
s e
mer
g
ed f
r
om t
he
s
e he
dgi
ng
re
l
ati
on
ship
s
. A
ny h
ed
ge in
ef
fec
ti
v
en
es
s i
s re
co
gni
s
ed im
me
diate
ly in t
he in
co
me s
ta
teme
nt in th
e pe
r
io
d th
at it o
cc
ur
s
. O
f th
e for
ei
gn
exch
ang
e co
ntr
a
c
t
s de
si
gn
ated a
s he
dgi
ng in
s
tr
u
ment
s, 9
8
% ar
e fo
r pe
r
io
ds of 12 month
s or l
es
s (
F
Y
2
0
21
: 8
9
%
).
Th
e fo
ll
ow
i
ng t
abl
e pr
e
s
ent
s a r
ec
on
cil
iat
ion b
y r
i
sk c
ate
gor
y of t
he c
a
sh
-fl
o
w he
dge r
e
s
er
v
e and a
nal
y
sis o
f othe
r co
mpr
eh
en
si
v
e inc
om
e
in r
el
ati
on to h
ed
ge a
cco
unti
ng:
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Br
ou
ght f
or
w
a
r
d ca
s
h-f
l
o
w he
dg
e r
es
e
r
ve at s
t
ar
t of y
ea
r
2
–
Foreign exchange
for
w
ard contrac
ts:
N
et f
ai
r v
al
ue g
ain
s on e
f
f
ec
t
i
ve h
e
dg
e
s
(6)
1
A
mo
unt r
e
cl
ass
if
i
ed t
o inc
om
e s
t
atem
ent – c
os
t o
f s
al
es
–
1
A
mo
unt r
e
cl
ass
if
i
ed t
o inc
om
e s
t
atem
ent – f
i
na
nc
e co
st
s
1
–
Carr
ied for
w
ard cash-fl
ow hedge reser
ve at end
of year
(3)
2
Th
e fo
ll
ow
i
ng t
abl
e
s set o
ut i
nfor
matio
n r
ega
r
din
g th
e cha
ng
e in v
al
ue of th
e he
dg
ed i
tem u
se
d in c
al
cul
ating h
ed
ge in
ef
f
ec
t
i
ven
e
s
s as w
el
l
as th
e imp
ac
ts on t
he c
a
sh-
fl
ow h
ed
ge r
e
s
er
ve:
Hedged item
Hedged exposure
He
dging instr
ument
Financial year
Ch
a
ng
e
s in v
a
l
ue o
f t
he
hedged item
for calculating
ineffec
tivene
ss
£m
Ch
a
ng
e
s in v
a
l
ue o
f t
he
hedging instrument for
calculating ineffe
ctivene
ss
£m
Cash-flow
hedge reserve
£m
Sale
s and
purchases
Foreign currenc
y
risk
Foreign exchange
contrac
t
s
F
Y2022
(6)
6
(6)
F
Y2
0
21
1
(
1)
1
Ca
sh
-f
lo
w he
dg
es g
en
er
a
ted £
nil of i
nef
fec
ti
v
en
es
s i
n F
Y
2
0
2
2 (F
Y
2
021
: £n
il
) w
h
ich w
as re
co
gni
se
d in t
he in
com
e s
tate
me
nt thr
o
ugh
finance cos
ts
.
T
r
ansl
ational currenc
y exp
osure
Th
e Gr
o
up ha
s si
gni
fi
c
ant in
ve
s
tm
ent
s in o
v
er
s
ea
s op
er
ation
s
, pa
r
ticu
l
ar
l
y in th
e US an
d Eur
o
pe
. A
s a r
e
su
lt, t
he s
ter
ling v
alue of th
e Gr
o
up’
s
ba
l
anc
e she
et c
an b
e si
gni
fi
c
antl
y af
f
ec
te
d by m
o
ve
ment
s i
n exch
an
ge r
a
tes
. T
he G
r
oup s
e
ek
s to mi
tig
ate th
e ef
f
ec
t of t
he
s
e tr
a
ns
l
ati
ona
l
cur
r
e
nc
y e
xp
os
ur
e
s by m
atchi
ng t
he ne
t inv
e
st
me
nt in ov
er
sea
s op
er
ation
s w
it
h bo
r
r
ow
i
ng
s den
om
inate
d in th
eir f
u
nc
ti
ona
l cur
ren
cie
s
,
excep
t w
her
e s
ign
if
ic
ant a
d
v
er
s
e inter
e
s
t di
f
fe
r
enti
al
s o
r oth
er f
ac
to
r
s w
oul
d r
en
der t
he co
s
t of su
ch h
ed
gin
g ac
ti
v
i
t
y unec
ono
mic
. T
h
is is
ach
ie
ve
d by b
or
ro
w
ing p
r
im
ar
il
y in th
e re
le
v
ant c
ur
r
en
c
y or i
n so
me c
a
se
s in
dir
e
c
tl
y usi
ng cr
o
s
s-
cu
r
r
enc
y sw
a
ps
.
Net investment hedg
es
Th
e t
abl
e be
lo
w se
t
s ou
t the c
ur
r
en
c
y of l
o
ans a
nd s
w
a
p cont
r
a
c
t
s de
si
gnate
d a
s net in
ve
s
tm
ent h
ed
ge
s:
At 31 J
u
ly 2
0
22
A
t 31 Ju
l
y 2
0
21
US$
£m
Euro
£m
To
t
a
l
£m
US$
£m
Euro
£m
To
t
a
l
£m
Loans designated
as net
investment hedges
–
(
4
51)
(
4
51
)
(285)
(
4
59)
(
74
4
)
Cros
s-
cur
renc
y s
w
ap
(
615
)
–
(
615
)
(5
3
9)
–
(
5
39)
(
61
5
)
(
4
51)
(1,
0
6
6
)
(82
4)
(4
59)
(
1
,283
)
At 31 Ju
ly 2
0
2
2
, cr
os
s
-c
ur
r
en
c
y s
w
aps he
dg
ed t
he Gr
o
up’
s ex
po
su
re to U
S do
ll
ar
s and e
ur
os (
31 Ju
ly 2
0
21
: US d
ol
l
ar
s a
nd eu
ro
s
). Al
l th
e
cr
os
s-
c
ur
r
en
c
y s
w
a
ps d
es
ign
ated a
s ne
t inv
e
st
me
nt he
dg
es w
er
e c
ur
r
ent a
nd n
on
-c
ur
r
ent (
F
Y
2
0
21: non-
cu
r
r
ent
).
Sw
a
ps ge
ne
r
ati
ng £
3
5
4m of t
he U
S dol
l
ar e
xp
os
ur
e (
F
Y
2
0
21
: £310m
) w
il
l mat
ur
e in A
p
r
il 2
0
2
3 and s
w
ap
s ge
ner
ating £
26
1
m of the US d
ol
l
ar
ex
po
sur
e (
F
Y
2
0
21
: £
2
2
9m
) w
il
l mat
ur
e in Fe
br
u
ar
y 2
0
2
7
.
In ad
di
tio
n, n
on
-s
w
a
pp
ed b
or
r
o
w
in
gs w
er
e al
so us
e
d to he
dge t
he G
ro
up’s expo
sur
e to U
S do
ll
a
r
s an
d eur
o
s (31 J
uly 2
0
21 U
S do
ll
a
r
s an
d
eur
os
). Bo
r
r
o
w
ing
s ge
ner
ating £
28
5
m of t
he U
S dol
l
ar e
xp
os
ur
e (
F
Y
2
0
21
: £
2
8
5
m) h
av
e be
en p
r
ep
aid i
n Feb
r
ua
r
y 2
0
2
2.
Bo
r
r
ow
i
ngs g
en
er
a
tin
g £
5
0
0
m of th
e eur
o e
xp
os
ur
e (F
Y
2
0
21: £5
0
8
m) w
i
ll m
atur
e i
n A
pr
i
l 2
0
2
3 an
d bo
r
r
o
w
ing
s gen
er
ating £
28
7m of the e
ur
o
ex
po
sur
e (
F
Y
2
0
21
: £
2
9
2m
) w
il
l mat
ur
e in Fe
br
u
ar
y 2
0
2
7
.
Hedge ef
fecti
vene
ss is determined at the inception of
the hedge rel
ationship, and through perio
dic prospec
ti
ve effe
cti
vene
ss as
ses
sment
s
to ens
ur
e th
at an e
con
om
ic r
el
at
ion
sh
ip ex
is
t
s b
et
w
e
en th
e he
dg
ed i
tem an
d he
dg
ing i
ns
tr
ument
. T
he s
w
aps an
d bor
ro
w
ing
s ha
ve t
he s
am
e
noti
on
al am
oun
t as th
e he
dg
ed i
tem
s and
, th
er
efo
re
, th
er
e is an e
co
no
mic r
el
a
tio
ns
hip w
i
th th
e he
dg
e r
at
io e
s
ta
bl
is
he
d as 1
:
1.
Th
e ma
in s
our
ce
s of h
ed
ge in
ef
f
ec
t
i
ve
ne
s
s in th
e
se h
ed
gin
g r
el
ati
on
shi
ps is t
he ef
fec
t of t
he co
unte
r
pa
r
t
y an
d the G
r
oup’s ow
n cr
ed
it
r
isk o
n th
e f
air v
al
ue of t
he fo
r
eign e
xch
ang
e for
w
a
r
d cont
r
a
c
t
s w
hic
h is n
ot r
efl
ec
te
d in th
e f
air v
a
lue o
f the h
ed
ge
d ite
m an
d the r
i
sk of
ov
er
-h
ed
gin
g w
he
re t
he h
ed
ge r
el
a
tio
ns
hip r
eq
uir
e
s r
e-
b
al
an
cin
g. N
o oth
er s
our
ce
s of i
nef
fec
ti
v
en
es
s e
mer
g
ed f
r
om t
he
s
e he
dgi
ng
re
l
ati
on
ship
s
. A
ny h
ed
ge in
ef
fec
ti
v
en
es
s i
s re
co
gni
s
ed im
me
diate
ly in t
he in
co
me s
ta
teme
nt in th
e pe
r
io
d th
at it o
cc
ur
s
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
14
4
Th
e fo
ll
ow
i
ng t
abl
e pr
e
s
ent
s a r
ec
on
cil
iat
ion b
y r
i
sk c
ate
gor
y of t
he n
et in
ve
s
tme
nt he
dg
e r
es
er
v
e an
d ana
ly
si
s of oth
er co
mp
re
he
nsi
v
e
inc
ome i
n re
l
ati
on to h
ed
ge ac
cou
ntin
g:
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Br
ou
ght f
or
w
a
r
d net i
nv
e
s
tm
ent h
ed
ge r
e
s
er
v
e at s
t
ar
t of ye
ar
(238
)
(
314
)
Cros
s-
cur
renc
y s
w
aps
Net f
a
ir v
a
lue g
ai
ns o
n ef
fec
ti
v
e h
ed
ge
s
(82
)
14
Bonds
Net f
a
ir v
al
ue g
ai
ns o
n ef
f
ec
t
i
v
e he
dg
e
s
5
62
A
mo
unt
s r
e
mo
v
ed f
r
o
m the h
e
dg
e r
es
e
r
ve an
d
recognis
ed in the i
ncome statement
Profit
/(loss) on business disposal
10
3
–
Carr
ied for
w
ard net investment hedge reser
ve at
end of year
(
2
12
)
(23
8)
Th
e fo
ll
ow
i
ng t
abl
e s
et
s ou
t info
r
mat
io
n re
ga
r
din
g the c
ha
nge i
n v
alu
e of th
e he
dg
ed i
tem u
se
d in c
al
cul
a
tin
g he
dg
e inef
fec
ti
v
en
e
ss a
s w
el
l
as th
e imp
ac
ts on t
he n
et inv
e
s
tme
nt he
dg
e r
es
er
v
e as at 31 J
uly 2
0
2
2 a
nd 31 Jul
y 2
0
21
:
Hedged item
Hedged exposure
H
edging instr
ument
Financial year
Ch
a
ng
e
s in v
a
l
ue o
f t
he
hedged item
for calculating
ineffec
tivene
ss
£m
Ch
a
ng
e
s in v
a
l
ue o
f t
he
hedging instrument for
calculating ineffe
ctivene
ss
£m
Net investment
hedge reserve
£m
Overseas
oper
ation
Foreign currenc
y
risk
Cros
s-
cur
renc
y s
w
aps
F
Y2022
82
(82)
(82)
Bonds
FY2022
(5)
5
5
77
(77)
(77)
Overseas
oper
ation
Foreign currenc
y
risk
Cros
s-
cur
renc
y s
w
aps
F
Y2
0
21
(
14
)
17
14
Bonds
F
Y
2
021
(62)
62
62
(
76
)
79
76
Net in
ve
s
tm
ent h
ed
ge
s ge
ner
ated £1
m of in
ef
fe
c
ti
v
en
e
ss i
n F
Y
2
0
2
2 (
F
Y
2
0
21
: £3
m
) w
hic
h w
as r
e
co
gni
se
d in th
e inc
om
e st
ate
ment t
hr
ou
gh
finance cos
ts
.
Th
e f
air v
a
lue
s of t
he
s
e net in
v
es
tm
ent h
ed
ge
s ar
e s
ubje
c
t to exc
han
ge r
ate mov
em
ent
s
. B
as
e
d on th
e he
dg
ing i
ns
tr
u
men
t
s in pl
a
ce
at the y
e
ar
-
end
, if t
he sp
e
cif
i
ed c
ur
r
en
cie
s w
er
e to s
tr
en
gt
hen 10
% w
hil
e all o
the
r mar
ket ra
tes r
e
main
ed c
on
s
ta
nt, i
t wo
ul
d ha
ve t
he
follo
wing ef
fe
ct:
Loss
recognised
in hedge
reser
ve
31 Ju
ly 2
0
2
2
£m
Loss
recognised
in hedge
reser
ve
31 Ju
l
y 2
0
21
£m
US dollar
68
92
Euro
50
51
Th
e
se m
o
vem
ent
s w
ou
ld b
e f
ull
y of
f
s
et b
y an op
po
si
te mo
ve
me
nt on th
e r
etr
a
ns
l
ati
on of t
he ne
t as
s
et
s of th
e ov
er
sea
s su
bsi
dia
r
ie
s
.
Th
e
se s
en
si
ti
v
i
tie
s w
er
e c
al
cul
ate
d b
efor
e a
dju
st
ing f
or t
a
x.
(b) I
nte
res
t r
ate risk
Th
e Gr
o
up op
er
ates an i
nter
es
t r
ate pol
ic
y des
ign
ed to o
pti
mis
e inte
re
s
t co
s
t and r
e
du
ce vo
l
ati
li
t
y in rep
or
ted e
ar
n
in
gs
. T
he G
ro
up’s cur
re
nt
po
li
c
y is to r
e
qui
re i
nter
e
s
t r
ate
s to be f
i
xed w
i
th
in a ba
nd of b
et
wee
n 4
0
% a
nd 6
0 % of t
he le
v
el of gr
o
s
s deb
t. T
h
is i
s ach
ie
ve
d thr
o
ugh f
i
xed
r
ate b
or
r
o
w
in
gs an
d inter
e
s
t r
ate s
w
aps. A
t 31 Ju
ly 2
0
2
2
, 5
0
% (F
Y
2
021
: 5
4%
) of the G
r
oup’s gro
ss b
or
ro
w
ing
s we
r
e at f
ixe
d inter
e
s
t r
ate
s
,
af
te
r adj
us
tin
g fo
r inter
e
s
t r
ate s
w
a
ps an
d th
e imp
ac
t o
f sho
r
t matur
it
y d
er
i
v
at
i
ve
s d
es
ign
ated a
s ne
t inv
e
st
me
nt he
dg
es
.
Th
e Gr
o
up mo
ni
tor
s i
t
s f
ixe
d r
ate r
isk pr
of
il
e aga
ins
t b
oth g
ro
s
s an
d net d
ebt
. Fo
r me
dium
-te
r
m pl
a
nnin
g, i
t fo
cu
se
s o
n gr
os
s d
ebt to
el
imin
ate th
e fl
uc
t
uati
on
s of v
ar
i
abl
e c
as
h le
ve
l
s o
ve
r the c
ycle
. T
he w
ei
ghte
d av
er
a
ge i
nter
e
st r
ate on bo
r
r
ow
i
ng
s and c
r
os
s-
c
ur
r
en
c
y
s
w
aps a
t 31 July 2
0
2
2
, af
ter inter
e
s
t r
ate s
w
a
ps
, w
a
s 3.
0
6% (F
Y
2
0
21
: 2.
0
6%).
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
14
5
Intere
s
t r
ate p
rof
ile o
f fin
anc
ial a
ss
et
s a
nd li
abi
liti
es a
nd th
e fa
ir v
alu
e of bo
r
row
in
gs
Th
e fo
ll
ow
i
ng t
abl
e sh
ow
s t
he inte
r
es
t r
ate ri
sk ex
p
osu
r
e of inv
e
s
tme
nt
s
, c
ash a
nd b
or
r
o
w
in
gs
, w
it
h th
e bor
ro
w
ing
s ad
jus
te
d for t
he im
pa
c
t
of inter
e
s
t r
ate h
ed
gin
g. O
t
her f
in
an
cia
l as
s
et
s an
d li
abi
li
ti
es d
o not e
ar
n o
r be
ar inte
r
es
t
, an
d for al
l f
in
anc
ial in
s
tr
u
men
t
s excep
t bo
r
r
ow
i
ng
s,
the c
a
r
r
y
ing v
a
lue i
s not m
ater
i
al
ly di
f
fe
r
ent f
r
om th
eir f
ai
r v
alu
e.
A
s a
t 31 Ju
ly 2
0
2
2
A
s at 3
1 Ju
ly 2
021
At f
a
ir v
a
lu
e
through
profit or
loss
£m
C
as
h a
nd
cash
equivalent
s
£m
Borrowings
£m
Fai
r v
al
u
e of
borrowings
£m
At f
a
ir v
a
l
ue
through profit
or loss
£m
Cash and
cash
equivalent
s
£m
Borr
ow
ings
£m
Fai
r v
a
lu
e of
borr
ow
ings
£m
Fixed interest
Le
s
s th
an o
ne y
e
ar
–
–
(
2
0
3)
(2
03)
–
–
(3
6)
(3
6)
Bet
we
en o
ne a
nd f
i
v
e y
ea
r
s
–
–
(
357
)
(3
59)
–
–
(
41
8
)
(4
34)
Gr
e
ater t
ha
n f
i
ve y
e
ar
s
–
–
(
24)
(24)
–
–
(
3
21)
(
35
3)
T
otal fixed
interes
t financial liabilities
–
–
(584)
(
5
8
6)
–
–
(775)
(82
3)
Floating r
ate int
eres
t financial asset
s
/(l
iabilities
)*
390
970
(
582)
(58
6)
4
333
(727
)
(
73
6)
T
otal interest-bearing financial
asset
s/(liabilities)
390
970
(
1
,1
6
6
)
(
1
,1
7
2
)
4
333
(1,
5
02
)
(1,
5
5
9)
Non
-
inte
r
es
t-
be
ar
i
ng a
s
s
et
s in t
he s
a
me c
at
eg
or
y
4
86
–
–
7
72
–
–
To
t
a
l
3
94
1,
0
5
6
(
1,1
6
6
)
(
1
,1
7
2
)
11
4
05
(1,
5
0
2
)
(1,5
59
)
*
Fai
r v
a
lu
e ga
i
ns a
nd l
o
s
s
es i
n t
hi
s c
at
eg
o
r
y of as
s
et
s a
r
e r
e
co
gn
i
s
ed i
n ot
h
er c
om
p
re
h
en
s
i
ve i
n
co
m
e.
Interest rate hedging
Th
e Gr
o
up al
so ha
s ex
po
sur
e
s to th
e f
air v
a
lue
s of n
on
-
der
i
v
ativ
e f
in
anc
ial in
s
tr
u
ment
s such a
s EU
R and U
S
D fi
xed r
ate bor
ro
w
ing
s
.
T
o mana
ge t
he r
i
sk of ch
an
ge
s in t
he
se f
a
ir v
al
ue
s
, the G
r
oup h
as e
nter
ed i
nto fi
xe
d-to
-f
lo
at
ing i
nter
e
st r
ate sw
aps and c
r
os
s-
c
ur
r
en
c
y
inter
e
s
t r
ate s
w
a
ps w
hi
ch fo
r acc
ount
in
g pur
p
os
e
s ar
e de
s
ign
ated a
s f
air v
a
lue h
ed
ge
s
.
At 31 Ju
ly 2
0
2
2 an
d 31 Jul
y 2
0
21
, th
e Gr
ou
p ha
d de
si
gnate
d th
e fol
lo
w
in
g he
dg
es a
ga
ins
t v
a
r
iab
il
it
y in the f
a
ir v
alu
e of b
or
r
o
w
in
gs ar
i
sin
g
fr
om f
l
uc
tu
ati
on
s in ba
s
e r
ate
s:
–
€4
0
0m of th
e f
ixe
d
/
f
lo
atin
g el
eme
nt of th
e EU
R
/U
SD i
nter
e
st r
ate sw
aps th
at mat
ur
e on 2
8 A
p
r
il 2
0
2
3 par
tia
lly h
ed
gin
g th
e €
20
2
3 Eurobond;
–
€3
0
0
m of t
he f
i
xed
/
f
lo
ati
ng an
d € exch
an
ge e
xp
os
ur
e of E
UR
/U
S
D inter
e
s
t r
ate s
w
a
ps m
atur
ing on 2
3 Febr
u
ar
y 2
0
2
7 pa
r
tial
ly he
d
gin
g the
€ 2
0
27 E
ur
ob
ond; a
nd
–
The $1
5
0
m inter
e
s
t r
ate s
w
a
p w
hic
h mat
ur
e
s on 12 Octo
be
r 2
0
2
2
, pa
r
tial
ly he
dg
ing t
he U
SD 2
0
2
2 G
uar
antee
d note
s
, w
a
s ear
ly re
de
em
ed
in Fe
br
u
ar
y 2
0
2
2
.
Th
e f
air v
a
lue
s of t
he h
ed
gin
g ins
t
r
um
ent
s ar
e di
sc
lo
se
d in n
ote 2
0. T
h
e ef
f
ec
t of t
he s
w
a
ps w
a
s to co
nv
er
t £5
8
8m (
F
Y
2
0
21
: £
7
05
m
)
deb
t fr
om f
i
xed r
ate to fl
oat
ing r
ate. T
he s
w
a
ps h
av
e sim
il
ar c
r
it
ic
al te
r
ms to t
he he
d
ge
d item
s
, su
ch as t
he r
efe
r
enc
e r
ate, r
e
s
et date
s
,
noti
on
al am
oun
t
s, p
a
y
ment d
ate
s and m
atu
r
it
ie
s
. T
her
ef
or
e, th
er
e is a
n ec
on
omi
c re
l
ati
on
ship a
nd t
he he
d
ge r
a
tio i
s es
t
ab
li
sh
ed a
s 1
:
1.
Hedge ef
fecti
vene
ss is determined at the inception of
the hedge rel
ationship, and through perio
dic prospec
ti
ve effe
cti
vene
ss as
ses
sment
s to
ens
ur
e th
at an e
con
om
ic r
el
at
ion
sh
ip ex
is
t
s b
et
w
e
en th
e he
dg
ed i
tem an
d he
dg
ing i
ns
tr
ument
.
Th
e ma
in s
our
ce
s of h
ed
ge in
ef
f
ec
t
i
ve
ne
s
s in th
e
se h
ed
gin
g r
el
ati
on
shi
ps is t
he ef
fec
t of t
he c
ur
r
en
c
y b
as
is r
i
sk on c
r
os
s-
c
ur
r
en
c
y inte
re
s
t
r
ate s
w
a
ps w
hi
ch ar
e n
ot r
efl
ec
te
d in t
he f
air v
a
lue o
f the h
ed
ge
d ite
m. N
o oth
er s
our
ce
s of i
nef
fec
ti
v
en
es
s e
mer
g
ed f
r
om t
he
s
e he
dgi
ng
re
l
ati
on
ship
s
. A
ny h
ed
ge in
ef
fec
ti
v
en
es
s w
a
s r
ec
ogn
is
ed i
mme
di
ately i
n the i
nco
me s
t
atem
ent in t
he p
er
io
d in w
h
ich i
t oc
cur
red
.
Th
e fo
ll
ow
i
ng t
abl
e s
et
s ou
t the d
et
ail
s of the he
d
ge
d ex
po
sur
e
s co
ve
r
ed b
y th
e Gr
ou
p's fair v
a
lue h
ed
ge
s:
Changes in
value
of hedged
item
for calculating
ineffec
tivene
ss
£m
Ch
a
ng
e
s in v
a
l
ue o
f t
he
hedging instrument
for calculating
ineffec
tivene
ss
£m
Carr
y
ing amount
Accumulated fair value
adjustments on hedged
item
Hedged item
He
dged exposure
Financial
year
Ass
ets
£m
Liabilities
£m
Ass
ets
£m
Liabilities
£m
Fi
xe
d r
ate
bonds
(a)
Inte
re
s
t r
ate r
is
k
F
Y2022
8
(8)
–
336
–
(2)
Inte
re
s
t r
ate & cur
r
e
nc
y r
ate r
i
sk
F
Y2022
21
(
20)
–
252
–
(5)
29
(2
8)
–
588
–
(7)
Fi
xe
d r
ate
bonds
(a)
Inte
re
s
t r
ate r
is
k
F
Y2
0
21
5
(5)
–
4
49
–
6
Inte
re
s
t r
ate & cur
r
e
nc
y r
ate r
i
sk
F
Y2
0
21
4
(7
)
–
256
–
16
9
(12
)
–
705
–
22
(a
)
Cl
as
si
f
ie
d a
s b
or
r
o
w
i
ng
s
Fair v
al
ue h
ed
ge
s ge
ner
ated a £1
m ine
f
fe
c
ti
v
en
es
s i
n F
Y
2
0
2
2 (F
Y
2
021
: £
3m
) w
hi
ch w
a
s re
co
gni
s
ed in t
he in
co
me s
ta
teme
nt thr
o
ugh
finance cos
ts
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
14
6
Sensitivity of interest charges to interest rate movements
Th
e Gr
o
up ha
s ex
po
su
re to s
ter
lin
g, U
S do
ll
ar a
nd e
ur
o inter
e
s
t r
ate
s
. Ho
w
ev
er
, the G
ro
up d
oe
s no
t hav
e a si
gni
f
ic
ant e
xp
os
ur
e to inter
e
s
t
r
ate m
ov
em
ent
s fo
r any i
ndi
v
i
du
al cu
r
r
enc
y. Bas
ed o
n the c
omp
os
it
ion o
f net d
ebt an
d in
ve
s
tm
ent
s at 31 Ju
ly 2
0
2
2
, and t
ak
in
g into
con
si
der
ation a
ll f
i
xed r
ate bor
r
o
w
in
gs an
d inter
e
s
t r
ate s
wap
s in p
l
ace
, a one p
er
ce
nta
ge p
oi
nt (100 b
asi
s po
int
s
) ch
ang
e in a
ve
r
a
ge f
lo
ati
ng
inter
e
s
t r
ate
s fo
r all t
hr
ee c
ur
r
e
nci
es w
o
uld h
av
e a £
2
m imp
ac
t (
F
Y
2
0
21
: £
5m i
mp
ac
t
) o
n the G
r
oup’s prof
i
t bef
or
e t
ax
.
Impact of LIBOR transition
Th
e UK F
in
an
cia
l Co
nd
uc
t A
uth
or
i
t
y anno
unc
ed o
n 5 Mar
ch 2
0
21 t
hat L
I
BO
R ben
ch
mar
k r
ates w
il
l b
e dis
co
ntin
ue
d af
te
r 31 De
cem
be
r 2
0
21
excep
t the m
aj
or
i
t
y o
f US d
ol
l
ar s
et
ti
ngs w
h
ich w
i
ll b
e di
sc
onti
nue
d af
ter 30 J
un
e 2
0
2
3. T
h
e Gr
o
up is e
xp
os
e
d to inter
e
s
t r
ate b
enc
hm
ar
k
ref
or
m o
n it
s in
ter
es
t r
ate sw
a
ps a
nd cr
o
s
s-
cu
r
r
enc
y inter
es
t r
ate sw
a
ps w
hi
ch r
efe
re
nce 3
-
mo
nth an
d 6
-m
onth U
S
D L
IBO
R, h
av
e an
ag
gr
eg
ate no
min
al v
alu
e of U
SD 74
9m
, and m
atu
r
e bet
we
en A
p
r
il 2
0
2
3 a
nd F
ebr
uar
y 2
0
27
. In A
pr
il 20
21 t
he G
ro
up co
nf
ir
m
ed a
dhe
r
enc
e to
the I
SD
A 2
0
2
0 IB
OR Fa
ll
b
ac
ks P
r
oto
col a
s pu
bl
is
he
d by t
he Inte
r
nat
ion
al S
w
ap
s and D
er
iv
ati
v
e
s A
ss
oc
iati
on
, Inc
. (
IS
D
A
) on 2
3 O
c
tob
er 2
0
21
(th
e Pr
oto
co
l
), e
ns
ur
in
g tha
t app
r
opr
iate fa
ll
b
ack
s c
a
n app
ly to th
e
se d
er
i
v
at
i
ve
s in t
he e
ve
nt of L
IB
OR di
s
cont
inu
atio
n.
(c) Financ
ial credit risk
Th
e Gr
o
up is e
xp
os
e
d to cr
ed
it-r
el
ate
d lo
s
s
es i
n the e
v
ent of n
on
-p
er
for
m
anc
e by c
ounte
r
p
ar
tie
s to f
ina
nci
al in
s
tr
um
ent
s
, b
ut d
oe
s no
t
cur
r
e
ntly e
xp
ec
t a
ny c
ounte
r
p
ar
tie
s to f
ail to m
eet t
hei
r obl
i
gati
on
s. C
re
di
t r
is
k is mi
ti
gate
d by t
he B
o
ar
d-
app
r
ov
e
d po
li
c
y of o
nly p
l
aci
ng c
a
sh
dep
os
it
s w
i
th hi
ghl
y r
ate
d r
el
at
ion
shi
p ba
nk co
unter
par
tie
s w
it
hin c
ounte
r
p
ar
t
y l
imi
t
s e
s
ta
bl
ish
ed b
y r
efe
re
nce to t
he
ir St
an
dar
d & P
oo
r’s
lon
g-
ter
m de
bt r
a
tin
g. In t
he n
or
m
al co
ur
s
e of b
usi
ne
s
s, t
he G
r
oup o
pe
r
ate
s c
as
h po
ol
in
g s
y
s
tems
, w
h
er
e a le
gal r
ight of s
et-of
f appl
ie
s
.
Th
e ma
x
imum c
r
edi
t r
i
sk ex
p
osu
re i
n the e
v
ent of ot
he
r pa
r
ties f
a
il
ing to p
er
for
m t
he
ir ob
li
gat
ion
s un
der f
in
an
cia
l as
s
et
s
, excl
udi
ng tr
ade
and ot
he
r re
ce
i
v
abl
es a
nd d
er
i
v
at
i
ve
s
, tot
al
s £1
,067m at 31 July 2
0
2
2 (
F
Y
2
0
21
: £41
6m).
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Ca
sh i
n A
A
A l
iq
uid
it
y fu
nd
s
5
51
116
Ca
sh a
t ba
nk
s w
i
th a
t le
as
t a A
A
- cr
e
di
t r
at
in
g
10
4
46
Ca
sh a
t ba
nk
s w
i
th a
ll o
th
er A cr
e
di
t r
a
tin
g
s
397
2
37
Cash at other
bank
s
4
6
Inves
tments in bank deposits
4
4
Other inves
tments
7
7
1,
0
67
416
At 31 Ju
ly 2
0
2
2
, the m
a
xim
um ex
po
su
re w
i
th a s
ing
le b
ank f
or de
po
si
t
s an
d ca
sh w
a
s £
3
3
9
m (F
Y
2
0
21: £7
9m
), wh
il
s
t th
e ma
x
imum m
ar
k
to mar
ket e
xp
os
ur
e w
it
h a sin
gle b
an
k for d
er
i
v
ativ
e
s w
as £15m (F
Y
2
0
21: £26
m
). Th
e
se b
an
k
s hav
e A
A
A a
nd A
A
- cr
e
dit r
ating
s r
es
pe
c
ti
v
el
y
(F
Y
2
0
21: Both A
A
A an
d A
A-
).
(d) L
iquidi
t
y r
isk
Borrowing facilities
Bo
ar
d p
ol
ic
y spec
if
ie
s t
he ma
inten
anc
e of un
us
ed c
omm
it
te
d cr
e
dit f
a
cil
i
tie
s of at l
ea
s
t £
3
0
0
m at al
l tim
e
s to ens
ur
e th
at th
e Gr
ou
p ha
s
suf
fi
cie
nt av
ai
l
ab
le f
und
s fo
r ope
r
at
io
ns an
d pl
a
nne
d de
v
elo
pm
ent
. T
he G
r
oup h
as Re
vo
lv
in
g Cr
ed
it Fa
cil
i
tie
s of $
80
0m mat
ur
i
ng 1 No
v
emb
er
2
0
24
. A
t the b
al
ance sh
eet d
ate, t
he Gr
o
up ha
d th
e fol
lo
w
in
g un
dr
a
w
n cr
e
dit f
a
cil
i
tie
s:
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
E
x
pi
r
in
g af
t
er m
or
e th
an t
wo y
ea
r
s
657
575
Cash deposits
A
s at 31 J
uly 2
0
2
2
, £
814m (F
Y
2
021
: £1
8
6
m) of c
a
sh a
nd c
as
h eq
ui
v
al
ent
s w
a
s on d
epo
si
t w
it
h v
ar
i
ous b
an
k
s of w
hic
h £
5
5
8
m (
F
Y
2
0
21
: £1
16m)
w
as in l
iq
uid
it
y fun
ds
. £
4
m (F
Y
2
0
2
1
: £4
m) o
f inv
e
s
tme
nt
s com
pr
i
s
ed b
ank d
ep
os
it
s h
eld to s
e
cur
e l
ia
bil
it
ie
s an
d let
te
r
s of c
re
di
t
.
Gross contractual cash-flows for borrowings
A
s a
t 31 Ju
ly 2
0
2
2
A
s at 3
1 Ju
ly 2
02
1
Borrowings
(n
o
te
18)
£m
Fair
value
adjustment
s
£m
Contrac
tual
interest
payment
s
£m
To
t
a
l
contractual
cash-flows
£m
Borr
ow
ings
(not
e 1
8)
£m
Fair value
adjustment
s
£m
Contrac
tual
int
erest
pay
ment
s
£m
To
t
a
l
contractual
cash
-flow
s
£m
Le
s
s th
an o
ne y
e
ar
(53
9)
2
(
17
)
(55
4)
(3
6)
–
(
28)
(6
4)
Bet
we
en o
ne a
nd t
wo y
e
ar
s
(
2
3)
–
(
11)
(3
4)
(82
3)
(6)
(2
3)
(
852
)
Bet
we
en t
wo a
nd t
hr
e
e ye
ar
s
(20)
–
(
11
)
(
31)
(20)
–
(
11
)
(
3
1)
Bet
we
en t
hr
e
e an
d fo
ur y
ea
r
s
(14
)
–
(
11)
(
25)
(14
)
–
(
11
)
(25
)
Bet
we
en f
ou
r an
d fi
ve ye
ar
s
(5
52
)
5
(
11)
(5
58)
(10
)
–
(
11
)
(
2
1)
Gr
e
ater t
ha
n f
i
ve y
e
ar
s
(24
)
–
–
(24)
(577
)
(
16
)
(
11)
(604)
To
t
a
l
(
1
,1
7
2
)
7
(
61)
(1,
2
26
)
(1,
4
8
0
)
(22)
(95)
(1,
5
9
7
)
Th
e f
igu
r
es p
r
es
ente
d in t
he b
or
r
o
w
ing
s co
lum
n inc
lud
e th
e non
-
c
as
h adj
us
tm
ent
s w
hi
ch ar
e hi
ghl
i
ghted i
n the a
dj
ace
nt col
umn
.
Th
e co
ntr
act
ual i
nter
e
st r
e
po
r
ted for b
or
r
o
w
in
gs i
s bef
or
e th
e ef
fe
c
t of inte
r
es
t r
ate sw
a
ps
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
147
Gross contractual cash-flows for derivative financial instruments
A
s a
t 31 Ju
ly 2
0
2
2
A
s at 3
1 Ju
ly 2
02
1
Receip
ts
£m
Payment
s
£m
Net
cash-flow
£m
Receipts
£m
Pay
me
nts
£m
Net
cash
-flow
£m
A
sset
s
Le
s
s th
an o
ne y
e
ar
495
(
5
2
1)
(26)
14
2
(14
4
)
(2)
Gr
e
ater t
ha
n on
e ye
ar
270
(2
90)
(
20)
642
(568)
74
Liabilities
Le
s
s th
an o
ne y
e
ar
2
12
(209)
3
220
(
2
19
)
1
Gr
e
ater t
ha
n on
e ye
ar
8
(8)
–
3
(2)
1
To
t
a
l
9
85
(1,0
2
8
)
(4
3)
1,0
0
7
(9
3
3)
74
Th
is t
ab
le ab
o
ve p
re
s
ent
s t
he un
dis
c
ounte
d f
ut
ur
e cont
r
a
c
tua
l c
as
h-f
lo
w
s fo
r al
l der
iv
at
i
ve f
in
anc
ial i
ns
tr
u
me
nt
s. F
or th
is di
s
clo
su
re
, c
ash
-
fl
ow
s i
n for
ei
gn c
ur
r
enc
ie
s ar
e tr
ans
l
ated u
sin
g th
e spo
t r
ate
s at th
e b
al
an
ce sh
eet d
ate. T
h
e f
air v
a
lue
s of t
he
se f
i
nan
cia
l ins
t
r
um
ent
s ar
e
pr
e
se
nted in n
ote 2
0
.
Gross contractual cash-flows for other financial liabilities
Th
e co
ntr
act
ual c
a
sh
-f
lo
w
s for f
i
nan
cia
l li
abi
li
ti
es i
ncl
ud
ed in t
r
a
de an
d oth
er p
ay
a
bl
es w
er
e £
47
4m (
F
Y
2
0
21
: £
3
51
m) du
e in le
s
s th
an on
e
ye
ar an
d £13m (F
Y
2
0
21
: £
8m
) du
e bet
we
en o
ne an
d f
i
ve y
ea
r
s
.
2
0 D
er
i
v
ati
ve f
inancial
ins
tr
uments
Th
e t
abl
e
s bel
o
w set o
ut t
he n
omi
nal a
mou
nt an
d fa
ir v
al
ue of d
er
i
v
at
i
ve c
ontr
ac
t
s he
ld b
y th
e Gr
oup, i
de
ntif
y
in
g the d
er
i
v
a
ti
v
e cont
r
a
c
t
s
which qualif
y for hedge accounti
ng treatment:
At 31 J
u
ly 2
0
22
Contrac
t or
underlying
nominal
amount
£m
Fair
value
Ass
ets
£m
Liabilities
£m
Net
£m
Foreign exchange
contrac
ts (cash-flo
w hedges)
141
3
(5)
(2)
Foreign exchange
contrac
ts (not hedge accoun
ted)
226
1
(2)
(1)
T
otal
foreign exchange
contract
s
3
67
4
(7)
(3)
Cr
os
s
-
cu
r
r
en
c
y s
w
a
ps (
f
air v
a
lu
e an
d ne
t inv
e
s
tm
ent h
e
dg
es
)
615
–
(4
0)
(4
0)
T
otal financial derivati
ves
982
4
(
47
)
(
4
3)
Bal
ance sheet entries:
Non-cur
rent
269
–
(2
0)
(
20)
Curr
ent
713
4
(27
)
(
2
3)
T
otal financial derivati
ves
982
4
(
47
)
(
4
3)
At 3
1 Ju
ly 2
0
2
1
Contrac
t or
underl
ying
nominal
amount
£m
Fair value
A
sset
s
£m
Liabilitie
s
£m
Net
£m
Foreign exchange
contrac
ts (cash-flo
w hedges)
10
7
1
(2)
(
1)
Foreign exchange
contrac
ts (not hedge accoun
ted)
251
1
(
1)
–
T
otal
foreign exchange
contract
s
358
2
(3)
(1)
Cr
os
s
-
cu
r
r
en
c
y s
w
a
ps (
f
air v
a
lu
e an
d ne
t inv
e
s
tm
ent h
e
dg
es
)
539
72
–
72
Inte
re
s
t r
ate sw
aps (
fa
ir v
a
lu
e he
dg
e
s)
10
8
3
–
3
T
otal financial derivati
ves
1,
0
0
5
77
(3)
74
Bal
ance sheet entries:
Non-cur
rent
655
75
–
75
Curr
ent
350
2
(3)
(1)
T
otal financial derivati
ves
1,
0
0
5
77
(3)
74
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
14
8
Th
e mat
ur
i
t
y prof
il
e, a
ve
r
a
ge inte
re
s
t an
d for
e
ign c
ur
r
en
c
y exc
han
ge r
ates of t
he h
ed
gin
g ins
t
r
ume
nt
s us
e
d in th
e Gr
ou
p's hed
gin
g
st
r
ate
gie
s ar
e a
s fo
llo
w
s:
Ma
tu
r
i
t
y a
t 31 J
ul
y 20
2
2
Mat
ur
i
t
y a
t 31 J
ul
y 2
0
21
Hedged exposure
Hedgin
g instrume
nt
Up to
one year
On
e to f
i
v
e
years
More than
five years
Up to
on
e y
ea
r
On
e to f
i
v
e
year
s
More than
five years
Fair
value hedge
s
Inte
re
s
t r
ate r
is
k
Int
er
e
s
t r
ate s
wap
s
– US
D
– Not
io
na
l am
oun
t (£
m
)
–
–
–
–
10
8
–
–
Av
er
age sp
r
e
ad o
ve
r
6 mo
nth U
SD L
IBOR
–
–
–
–
1.7
9
7
%
–
Inte
re
s
t r
ate sw
aps
– EU
R
– Not
io
na
l am
oun
t (£
m
)
336
–
–
–
3
41
–
–
Av
er
age sp
r
e
ad o
ve
r
3 mo
nth E
UR L
I
BO
R
1.
0
15
%
–
–
–
1.
0
15
%
–
Inte
re
s
t r
ate r
is
k
/
Foreign currenc
y risk
Cros
s-
cur
renc
y s
w
aps
(EU
R:GBP)
– Not
io
na
l am
oun
t (£
m
)
–
254
–
–
–
25
4
– Av
er
age e
xch
an
ge r
ate
–
0.8
4
5
–
–
–
0.8
4
5
–
Av
er
age sp
r
e
ad o
ve
r
3 mo
nth G
BP L
IB
O
R
–
1.
7
5
0
%
–
–
–
1.7
5
0
%
Net investment hedges
Foreign currenc
y risk
Cr
oss
-cur
r
enc
y sw
ap
s
(EUR:US
D)
– Not
io
na
l am
oun
t (£
m
)
354
–
–
–
310
–
– Av
er
age e
xch
an
ge r
ate
1.
0
7
7
3
–
–
–
1.
0
7
7
3
–
Cros
s-
cur
renc
y s
w
aps
(GBP:USD)
– Not
io
na
l am
oun
t (£
m
)
–
2
61
–
–
–
229
– Av
er
age e
xch
an
ge r
ate
–
1
.253
4
–
–
–
1
.253
4
Cash-flow hedges
Foreign currenc
y risk
Foreign exchange
contra
ct
s (EUR:US
D)
– Not
io
na
l am
oun
t (£
m
)
77
–
–
47
5
–
– Av
er
age e
xch
an
ge r
ate
4
.17
8
5
–
–
1
.19
1
5
1.
2
2
0
5
–
Foreign exchange
contrac
t
s (EUR:GBP)
– Not
io
na
l am
oun
t (£
m
)
28
8
–
31
3
–
– Av
er
age e
xch
an
ge r
ate
0.8
32
3
1.1
6
7
6
–
0.
8
996
0
.9
0
94
–
Foreign exchange
contra
ct
s (EUR:
AUD)
– Not
io
na
l am
oun
t (£
m
)
6
–
–
7
–
–
– Av
er
age e
xch
an
ge r
ate
1
.5226
–
–
1.
5
8
3
2
–
–
Foreign exchange
contrac
t
s (USD:GBP)
– Not
io
na
l am
oun
t (£
m
)
16
–
–
8
–
–
– Av
er
age e
xch
an
ge r
ate
1.
3
2
7
3
–
–
1
.35
77
–
–
Foreign exchange
contrac
t
s (GBP:CZK
)
– Not
io
na
l am
oun
t (£
m
)
6
–
–
6
–
–
– Av
er
age e
xch
an
ge r
ate
30.298
8
–
–
2
9.
7
0
2
8
–
–
At 31 Ju
ly 2
0
2
2
, the G
r
oup h
ad f
or
w
ar
d fo
r
eig
n exch
ang
e co
ntr
a
c
t
s w
it
h a no
min
al v
al
ue of £14
1
m (F
Y
2
0
21
: £1
0
7m) de
si
gna
ted a
s c
ash
-f
lo
w
he
dge
s
. T
he
s
e fo
r
wa
r
d for
ei
gn e
xcha
nge c
ont
r
ac
t
s a
r
e in r
el
at
ion to s
a
le an
d pur
c
ha
se of m
ult
ipl
e cur
ren
cie
s w
i
th v
ar
y
in
g mat
ur
i
tie
s up to
2
0 Jul
y 2
0
2
3. T
h
e l
ar
g
es
t s
ing
le cu
r
r
enc
y pair
s are d
is
cl
os
ed a
bo
ve a
nd m
ake up 10
0
% of th
e noti
on
al he
dg
ed e
xp
o
sur
e. T
h
e not
io
nal a
nd f
air
v
alu
es o
f the
s
e for
e
ign e
xcha
ng
e for
w
ar
d d
er
i
v
a
ti
ve
s a
re s
ho
w
n in th
e no
min
al am
ou
nt and f
a
ir v
alu
e of d
er
i
v
at
i
ve c
ontr
ac
t
s ta
ble o
n p
age 14
8
.
Accounting
for oth
er der
i
v
ati
v
e contr
ac
t
s
A
ny fo
r
eig
n exch
an
ge co
ntr
act
s w
h
ich a
r
e not fo
r
ma
ll
y de
si
gnate
d as h
ed
ge
s an
d te
ste
d ar
e c
l
as
si
f
ie
d as ‘
hel
d fo
r tr
a
din
g’ and n
ot
hedge accoun
ted.
Net
ting
Inter
n
ati
ona
l Sw
a
ps an
d D
er
i
v
at
i
ve
s A
ss
oc
iati
on (
I
SD
A
) mas
ter n
et
t
ing a
gr
ee
me
nt
s ar
e in pl
ace w
it
h der
i
v
ativ
e co
unter
par
tie
s exc
ept fo
r
cont
r
a
c
t
s tr
a
de
d on a d
ed
ic
ated i
nter
n
ati
ona
l ele
c
tr
o
nic t
r
ad
ing p
l
at
f
or
m u
se
d fo
r ope
r
at
io
nal f
or
eig
n exch
an
ge he
dg
ing
. Un
der t
he
s
e
agr
e
eme
nt
s if a c
r
edi
t e
ve
nt occ
ur
s
, a
ll o
ut
s
t
and
ing t
r
a
ns
ac
t
io
ns un
de
r the I
S
DA ar
e te
r
min
ated a
nd o
nly a s
ing
le ne
t amo
unt p
er
cou
nter
p
ar
t
y i
s pa
y
ab
le in s
et
t
lem
ent of a
ll t
r
an
s
ac
t
ion
s
. T
he I
SD
A ag
r
eem
ent
s d
o not m
ee
t the c
r
ite
r
ia f
or of
fse
t
tin
g, s
inc
e the o
f
f
s
et
ti
ng
is enf
or
ce
abl
e onl
y if s
pe
ci
fi
c ev
ent
s o
cc
ur in th
e f
ut
ur
e, an
d th
er
e is n
o intent
ion to s
et
tle the c
ont
r
ac
t
s o
n a net b
a
sis
.
Ass
ets
31 Ju
ly 2
0
2
2
£m
Liabilities
31 Ju
ly 2
0
2
2
£m
A
sset
s
31 Ju
l
y 2
0
21
£m
Liabilitie
s
31 Ju
l
y 2
0
21
£m
Gr
os
s v
alue o
f as
s
et
s a
nd l
ia
bi
li
ti
e
s
4
(
47
)
77
(3)
Related asset
s and liabilities subject to master netting agreement
s
(4)
4
(
1)
1
Net exposure
–
(4
3)
76
(2)
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
149
21 Fair v
alue
of f
inancial
ins
tr
ument
s
A
s a
t 31 Ju
ly 2
0
2
2
Notes
Basis for
determining
fair value
At amortised
cost
£m
At f
a
ir v
a
lu
e
through profit
or l
o
s
s
£m
At f
a
ir v
a
lu
e
through OCI
£m
To
t
a
l
carr
y
ing
value
£m
To
t
a
l
fair value
£m
Financial assets
Other inves
tments
14
A
–
4
364
368
36
8
Other inves
tments
14
F
–
19
8
27
27
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
18
A
506
550
–
1,0
5
6
1,
0
5
6
T
rade and other financial recei
v
ables
16
B/C
807
–
–
807
807
Der
iv
ative financial instr
ument
s
20
C
–
4
–
4
4
T
otal
financial asset
s
1,
313
577
372
2,2
62
2,
262
Financial liabilities
T
r
ad
e an
d ot
he
r fi
na
nc
ial p
a
y
ab
le
s
17
B
(728)
–
–
(728)
(7
28)
Shor
t-term borrow
ings
18
D
(
50
9)
–
–
(50
9)
(
50
9)
Long-term borr
ow
ings
18
D
(5
38)
–
–
(5
3
8)
(5
4
4)
Lease liabil
ities
18
E
(
11
9
)
–
–
(
11
9
)
(
119
)
Der
iv
ative financial instr
ument
s
20
C
–
(
47
)
–
(
47
)
(
47
)
T
otal financial liabilities
(1,
8
94
)
(
47
)
–
(
1
,
9
41
)
(1,94
7
)
A
s at 3
1 Ju
ly 2
02
1
Note
s
Basis for
determining
fair value
At amortis
ed
cost
£m
At f
a
ir v
a
l
ue
through profit
or loss
£m
At f
a
ir v
a
l
ue
through OCI
£m
To
t
a
l
car
r
yin
g
value
£m
To
t
a
l
fair value
£m
Financial assets
Other inves
tments
14
A
–
4
–
4
4
Other inves
tments
14
F
–
–
7
7
7
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
18
A
289
11
6
–
4
05
405
T
rade and other financial recei
v
ables
16
B/C
689
–
–
689
6
89
Der
iv
ative financial instr
ument
s
20
C
–
77
–
77
77
T
otal
financial assets
978
19
7
7
1
,1
8
2
1
,1
8
2
Financial liabilities
T
r
ad
e an
d ot
he
r fi
na
nc
ial p
a
y
ab
le
s
17
B
(5
89)
–
–
(5
89)
(58
9)
Shor
t-term borrow
ings
18
D
(9)
–
–
(9)
(9)
Long-term borr
ow
ings
18
D
(1,
3
7
2
)
–
–
(1,
3
7
2
)
(
1,
4
2
9
)
Lease liabil
ities
18
E
(12
1)
–
–
(12
1
)
(
12
1)
Der
iv
ative financial instr
ument
s
20
C
–
(3)
–
(3)
(
3)
T
otal financial liabilities
(
2
,
0
91)
(
3)
–
(
2
,
0
94
)
(
2
,1
5
1
)
Th
e f
air v
a
lue o
f a fi
nan
cia
l in
st
r
um
ent is t
he p
r
ic
e at w
hic
h an as
s
et c
oul
d be e
xcha
ng
ed
, or a l
iab
il
it
y set
t
le
d, b
et
wee
n kn
ow
l
ed
ge
ab
le,
w
ill
in
g pa
r
tie
s in an a
r
m's-le
ng
th tr
ans
ac
t
io
n. Fai
r v
alu
es h
av
e b
ee
n deter
mine
d w
ith r
ef
er
en
ce to av
a
il
ab
le m
ar
ket inf
or
m
atio
n at th
e
ba
l
anc
e she
et d
ate, us
ing t
he m
eth
od
olo
gi
es d
e
sc
r
ib
ed b
el
ow
:
A
C
ar
r
y
in
g v
alu
e is a
s
sum
ed to b
e a r
ea
so
na
ble a
pp
rox
im
atio
n to f
air v
a
lue f
or al
l of th
e
se a
s
se
t
s and l
ia
bil
i
tie
s (
Le
v
el 1 as d
ef
in
ed b
y
IF
R
S 13 Fair Valu
e Me
as
ur
eme
nt
).
B
C
a
r
r
y
ing v
a
lue i
s as
s
ume
d to be a r
e
as
on
ab
le ap
pr
ox
imat
ion to f
a
ir v
al
ue fo
r all o
f the
s
e as
s
et
s an
d l
iab
il
it
ie
s (L
e
ve
l 2 as de
fi
ne
d by
IF
R
S 13 Fair Valu
e Me
as
ur
eme
nt
).
C
Fa
ir v
alu
e
s of de
r
i
v
ati
v
e f
ina
nci
al a
ss
et
s a
nd l
ia
bil
it
ie
s an
d tr
a
de r
e
cei
v
a
bl
es h
el
d to col
le
c
t or s
el
l ar
e e
s
tim
ated b
y di
sc
ount
ing e
xp
e
c
ted
fu
tu
re c
ontr
ac
tu
al c
as
h-f
l
ow
s u
sin
g pr
e
v
ail
in
g inter
e
s
t r
ate c
ur
ve
s
. A
m
ount
s d
en
omi
nate
d in fo
re
ign c
ur
r
en
cie
s a
re v
a
lue
d at t
he
exch
ang
e r
ate p
r
ev
a
il
ing at t
he b
al
a
nce s
he
et date
. T
he
s
e fi
nan
ci
al in
st
r
um
ent
s ar
e i
ncl
ud
ed on t
he b
al
a
nce s
he
et at f
air v
a
lue
, de
r
i
ve
d
fr
om o
bs
er
v
a
ble m
ar
ket p
r
ice
s (
L
ev
el 2 a
s def
in
ed b
y IF
R
S 13 Fair Val
ue M
ea
sur
em
ent
).
D
B
or
r
o
w
in
gs ar
e c
ar
ri
ed at a
mor
ti
se
d co
s
t. A
mount
s d
eno
min
ate
d in for
e
ign c
ur
r
en
cie
s ar
e v
a
lue
d at th
e exch
an
ge r
ate pre
v
ai
li
ng at t
he
ba
l
anc
e she
et d
ate. T
he f
a
ir v
al
ue of b
or
r
o
w
in
gs is e
s
ti
mate
d usi
ng q
uote
d pr
i
ce
s (L
e
ve
l 1 as de
fi
ne
d by IF
R
S 13).
E
L
ea
se
s ar
e c
a
r
r
ie
d at am
or
tis
e
d cos
t
. A
m
ount
s d
en
omi
nate
d in fo
re
ign c
ur
r
en
ci
es a
re v
alue
d at the e
xch
ang
e r
ate p
r
ev
a
il
ing at t
he
ba
l
anc
e she
et d
ate. T
he f
a
ir v
al
ue of th
e le
as
e co
ntr
act i
s e
st
ima
ted b
y dis
c
ount
ing c
ontr
ac
tu
al f
ut
ur
e c
ash
-f
lo
w
s (
Le
v
el 2 as d
ef
ine
d b
y
IF
R
S
13
).
F
Th
e fa
ir v
al
ue of i
ns
tr
u
men
t
s is e
s
tim
ated b
y us
ing u
no
bs
er
v
ab
le in
pu
t
s to the e
x
ten
t that r
e
le
v
ant ob
s
er
v
ab
le inp
ut
s a
r
e not a
v
ail
a
ble
.
Uno
bs
er
v
ab
le in
pu
t
s ar
e de
v
elo
pe
d us
ing t
he b
es
t in
for
m
ati
on a
v
ail
a
ble i
n the c
ir
cum
s
t
anc
es
, w
hi
ch m
ay in
clu
de t
he G
ro
up’s own d
at
a,
ta
kin
g into a
cco
unt al
l info
r
mat
io
n abo
ut m
ar
ket p
ar
tic
ip
ati
on a
ss
ump
tio
ns t
hat i
s re
l
iab
ly av
a
il
ab
le (
Le
v
el 3 a
s def
in
ed b
y IF
R
S 13).
IF
R
S 13 def
ine
s a t
hr
ee
-
le
vel v
aluati
on hi
er
arch
y:
L
ev
el 1 – qu
ote
d pr
i
ce
s for s
imil
a
r in
st
r
um
ent
s
Le
ve
l 2 – dir
e
c
tly o
bs
er
v
ab
le m
ar
ket in
pu
t
s oth
er th
an L
ev
el 1 in
pu
t
s
Le
ve
l 3 – inp
ut
s n
ot b
as
ed o
n ob
se
r
v
abl
e mar
ket data
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
15
0
2
2 C
ommitm
ent
s
At 31 Ju
ly 2
0
2
2
, com
mi
tme
nt
s
, com
pr
i
sin
g bo
nd
s and g
uar
antee
s ar
i
sin
g in t
he no
r
ma
l co
ur
s
e of bu
sin
e
s
s, a
mo
unted to £
23
4m
(F
Y
2
0
21: £210m
), inc
lud
ing p
en
si
on co
mmi
tm
ent
s of £
5
6
m (F
Y
2
0
21: £5
4
m
). In ad
dit
io
n, th
e Gr
o
up ha
s co
mmi
t
ted e
xp
en
di
tur
e o
n c
api
ta
l
pr
oj
ec
t
s am
ou
ntin
g to £1
5m (
F
Y
2
0
21
: £
4m
).
2
3 P
r
ov
isions
and contingent l
iabilitie
s
T
rading
Non
-headline and legacy
To
t
a
l
£m
John Crane,
Inc.
litigation
£m
Ti
tefle
x
Corpor
ation
litigation
£m
Other
£m
£m
At 31 J
uly 2
0
2
0
14
2
31
66
20
3
31
Foreign exchange
r
ate
movements
(1)
(
12
)
(4)
(
1)
(
18
)
Prov
ision charged
7
5
–
–
12
Prov
ision released
(4)
–
(13
)
–
(
17
)
Unwind of provision discount
–
1
1
–
2
Utilisation
(6)
(13)
(3)
(2)
(
24)
Business combinations
1
–
–
–
1
At 31 J
uly 2
0
21
11
2
12
47
17
2
87
Curr
ent liabilities
10
26
8
2
46
Non-cur
r
ent liabilities
1
18
6
39
15
2
41
At 31 J
uly 2
0
21
11
2
12
47
17
2
87
Foreign exchange
r
ate
movements
1
30
6
2
39
Prov
ision charged
6
6
2
26
40
Prov
ision released
(3)
–
–
–
(
3)
Unwind of provision discount
–
2
1
–
3
Utilisation
(4)
(
2
1)
(4)
(2)
(
31)
At 31 J
uly 2
0
2
2
11
229
52
43
335
Curr
ent liabilities
10
34
14
30
88
Non-cur
r
ent liabilities
1
19
5
38
13
2
47
At 31 J
uly 2
0
2
2
11
229
52
43
335
The John Crane, Inc. and Titeflex Corpor
ation litigation provisions were the only provisions that were discoun
ted;
other provisions have not
be
en di
sc
ounte
d a
s the i
mp
ac
t w
oul
d b
e imm
ater
ia
l
.
T
r
adin
g
Th
e pr
o
v
is
ion
s in
clu
de
d as t
r
a
din
g re
pr
e
se
nt am
ount
s p
r
ov
i
de
d for i
n the o
r
din
ar
y co
ur
s
e of bu
sin
e
s
s. T
r
a
din
g pr
o
v
isi
on
s ar
e ch
ar
ge
d an
d
released through headline profit.
Warr
ant
y prov
ision and produc
t liabilit
y
At 31 Ju
ly 2
0
2
2
, the G
r
oup h
ad w
a
r
r
a
nt
y a
nd p
ro
du
c
t li
abi
li
t
y pro
v
is
io
ns of £
7m (F
Y
2
021
: £9
m). W
ar
r
antie
s ov
er t
he Gr
o
up’s prod
uc
t
s
t
y
p
ic
al
ly co
v
er pe
r
io
ds o
f bet
we
en on
e an
d thr
e
e ye
ar
s
. P
r
ov
i
si
on is m
ad
e for t
he l
ikel
y cos
t of a
f
ter
-
s
ale
s su
pp
or
t ba
s
ed on t
he r
e
cent p
a
st
exper
ience of individual busine
ss
es.
Commercial disputes and litigation in respect of ongoing business activities
Th
e Gr
o
up ha
s on o
cc
as
io
n be
en r
eq
uir
e
d to ta
ke leg
al a
c
tio
n to pr
ote
c
t it
s i
ntell
ec
t
ua
l pr
op
er
t
y a
nd ot
her r
i
ght
s a
gai
ns
t inf
r
in
ge
men
t.
It h
as al
so ha
d to def
end i
t
s
el
f aga
ins
t p
r
oce
e
din
gs br
o
ugh
t by ot
her p
ar
ti
es
, in
cl
udi
ng pr
o
du
c
t li
abi
li
t
y a
nd i
nsu
r
an
ce s
ubr
o
gat
ion c
l
aim
s
.
Pr
o
v
isi
on i
s ma
de fo
r any e
xp
e
c
ted c
os
t
s an
d li
abi
li
ti
es i
n re
l
ati
on to th
e
se p
r
oce
e
din
gs w
h
er
e app
r
op
r
iate, a
lth
ou
gh th
er
e c
an b
e no
gua
r
ante
e th
at su
ch pr
o
v
is
ion
s (
w
hic
h ma
y be s
ubj
ec
t to p
otent
ial
ly m
ater
i
al r
ev
i
sio
n f
ro
m tim
e to tim
e) w
i
ll a
ccu
r
atel
y pr
e
dic
t t
he ac
t
ua
l
cos
t
s an
d l
iab
il
it
ie
s tha
t may b
e in
cur
red
.
Contingent liabilities
In th
e or
din
ar
y co
ur
s
e of i
t
s bu
sin
es
s
, th
e Gr
o
up is s
ubj
ec
t to c
omm
er
cia
l dis
pu
te
s and l
i
tig
ati
on su
ch a
s go
ve
r
nm
ent pr
ice aud
it
s
, p
ro
du
c
t
li
abil
i
t
y c
l
aim
s
, emp
lo
ye
e di
sp
ute
s an
d oth
er ki
nd
s of l
aw
s
ui
t
s
, and f
a
ce
s dif
fer
ent t
yp
e
s of le
gal i
s
su
es i
n dif
fer
ent ju
r
is
di
c
tio
ns
. T
he h
igh
le
vel o
f ac
ti
v
i
t
y in the U
S, fo
r ex
amp
le
, ex
po
se
s th
e Gr
o
up to th
e li
keli
ho
od of v
ari
ou
s t
y
p
e
s of l
iti
gat
io
n com
mon
pl
a
ce in t
hat c
ount
r
y, such as
‘mas
s tor
t’ an
d ‘cl
as
s ac
t
ion’ l
iti
gat
ion
, le
ga
l cha
ll
en
ge
s to th
e sc
op
e and v
a
li
di
t
y of p
ate
nt
s
, and p
r
od
uc
t l
iab
il
it
y and in
sur
ance s
ubr
o
gat
ion
cl
ai
ms
. T
he
s
e t
y
p
e
s of pr
o
ce
ed
ing
s (or t
he t
hr
eat o
f the
m) a
r
e al
s
o us
e
d to cr
ea
te pr
e
ss
ur
e to en
co
ur
a
ge n
eg
otia
ted s
et
tl
em
ent of di
sp
ute
s
.
A
ny c
l
aim b
r
oug
ht ag
ain
st t
he G
r
oup (
w
i
th or w
i
th
ou
t mer
it
) co
uld b
e co
s
tly to d
efen
d. T
h
es
e m
at
ter
s are in
her
e
ntly d
if
fic
ult to q
uant
if
y.
In app
r
op
r
iate c
a
se
s a p
ro
v
is
io
n is r
ec
og
nis
e
d ba
se
d on b
e
s
t es
ti
mate
s an
d ma
na
gem
ent ju
dg
em
ent bu
t th
er
e c
an b
e no gu
ar
antee th
at
the
s
e pr
o
v
isi
on
s (
w
hic
h ma
y be s
ubj
ec
t to p
otent
ial
ly ma
ter
ia
l re
v
i
sio
n fr
o
m tim
e to tim
e) w
il
l r
e
sul
t in an a
ccu
r
ate p
re
di
c
tio
n of th
e ac
tu
al
cos
t
s an
d l
iab
il
it
ie
s tha
t may b
e in
cur
red
. T
he
re a
r
e al
s
o co
ntin
ge
nt li
abi
li
ti
es i
n re
s
pe
c
t of l
iti
gat
io
n for w
hi
ch n
o pr
o
v
isi
on
s ar
e ma
de
.
Th
e Gr
o
up op
er
ates in s
om
e ma
r
ket
s w
her
e t
he r
i
sk of un
eth
ic
al o
r cor
r
upt be
ha
v
iou
r is ma
ter
ia
l and h
as p
r
oc
edu
r
es
, in
clu
din
g an
emp
lo
ye
e ‘Eth
ic
s A
le
r
tli
ne’
, to hel
p it i
de
ntif
y po
tenti
al is
s
ue
s
. Su
ch pr
o
ce
dur
e
s w
il
l
, fr
o
m tim
e to tim
e, gi
v
e r
is
e to inte
r
na
l inv
e
st
ig
atio
ns
,
so
met
ime
s co
nd
uc
ted w
i
th e
x
ter
nal sup
po
r
t, to en
sur
e t
hat th
e Gr
o
up pr
o
pe
r
ly un
de
r
s
ta
nd
s r
isk
s a
nd c
onc
er
n
s and c
a
n ta
ke ste
ps b
oth
to man
ag
e imm
ed
iate is
s
ue
s an
d to imp
r
ov
e it
s p
r
a
c
tic
es a
nd p
ro
ce
dur
e
s fo
r th
e fu
tu
re
. T
he G
ro
up i
s not a
w
ar
e of an
y is
s
ue
s w
hic
h ar
e
ex
pe
c
ted to g
ene
r
ate m
ater
i
al f
in
anc
ial e
xp
os
ur
e
s.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
151
Non-headline and legac
y
John Crane, Inc.
Joh
n Cr
a
ne, I
nc
. (
J
CI
) is o
ne of m
any c
o
-d
efe
nda
nt
s in nu
mer
o
us l
a
w
sui
t
s p
end
ing i
n the U
ni
ted St
ate
s in w
h
ich p
l
aint
if
fs ar
e cl
a
imi
ng
dam
ag
es a
r
is
ing f
r
om a
ll
eg
ed e
xp
os
ur
e to, or u
se o
f, pr
od
uc
t
s pr
e
v
io
us
ly ma
nuf
a
c
tur
e
d w
hic
h co
nta
ine
d as
be
s
tos
. Unt
il 2
0
0
6
, th
e aw
a
rd
s
,
the r
el
ated inter
e
s
t and a
ll m
ater
i
al de
fen
ce co
st
s w
e
re m
et dir
e
c
tl
y by in
su
re
r
s
. In 2
0
0
7
, JCI s
ec
ur
ed t
he c
omm
ut
ati
on of c
er
tai
n ins
ur
ance
po
li
cie
s in r
e
sp
ec
t o
f pr
od
uc
t l
ia
bil
it
y. Pro
v
i
sio
n is ma
de i
n r
es
pe
c
t of th
e ex
pe
c
ted c
os
t
s of d
efen
din
g k
no
w
n and p
r
ed
ic
te
d fu
tu
re c
l
aim
s an
d
of ad
v
er
s
e ju
dg
em
ent
s in r
el
a
tio
n th
er
eto, to th
e ex
tent that s
uc
h cos
t
s c
an b
e r
el
iab
ly e
s
tim
ated
.
Th
e JC
I pr
o
duc
t
s g
en
er
a
ll
y ref
er
r
e
d to in th
es
e c
a
se
s co
ns
is
t of in
dus
t
r
ial s
e
al
ing p
r
od
uc
t
, pr
im
ar
i
ly p
ack
in
g an
d gas
ket
s
. T
he as
be
s
tos w
a
s
enc
ap
su
l
ated w
i
th
in th
es
e pr
o
du
c
t
s in su
ch a m
ann
er th
at c
aus
e
s JC
I to be
li
ev
e, b
as
e
d on te
s
t
s con
du
c
ted o
n it
s b
eh
alf, th
at th
e pr
o
duc
t
s
we
re s
a
fe. J
CI ce
as
e
d man
uf
ac
t
ur
i
ng pr
o
du
c
t
s cont
ai
nin
g as
be
s
tos in 198
5.
JCI c
onti
nue
s to a
c
ti
v
ely m
oni
tor t
he co
nd
uc
t an
d ef
f
ec
t of i
t
s cu
r
r
ent an
d ex
pe
c
te
d asb
e
s
tos l
it
iga
tio
n, in
cl
udi
ng th
e mo
s
t ef
f
ic
a
cio
us
pr
e
se
ntat
io
n of it
s ‘s
afe p
r
odu
c
t’ d
efen
ce, a
nd inte
nd
s to con
tinu
e to r
es
is
t th
e
se a
sb
es
to
s cl
ai
ms b
as
e
d up
on th
is de
fen
ce. T
h
e ta
ble b
el
ow
sum
mar
i
s
es t
he J
CI cl
a
ims e
xp
er
ience o
v
er th
e l
as
t 4
0 y
e
ar
s s
inc
e the s
t
ar
t of thi
s l
iti
gat
ion:
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
Y
ear ended
31 Ju
l
y 2
0
21
Y
ear ended
31 Ju
l
y 2
0
2
0
Y
ear ended
31 Ju
l
y 2
019
Y
ear ended
31 Ju
l
y 2
018
JCI claims experie
nce
Claims again
st JCI that have been dismis
sed
306
,
000
305
,000
297
,000
285
,000
2
77
,000
Cl
ai
ms J
CI i
s cu
r
r
ent
ly a d
efe
nd
an
t in
22,
000
22,000
25,
000
38,
000
43,000
Cum
ul
at
i
v
e fi
na
l ju
dg
em
ent
s
, a
f
te
r ap
pe
al
s, a
gai
ns
t J
CI s
in
ce 197
9
149
149
149
14
4
14
0
Cum
ul
at
i
v
e v
al
ue of a
w
ar
d
s (
$’m) s
in
ce 197
9
17
5
17
5
17
5
16
8
16
4
Th
e num
be
r of cl
a
ims o
ut
s
t
an
din
g at 31 Jul
y 2
0
2
2 r
efl
ec
te
d th
e be
nef
i
t of 1,00
0 (F
Y
2
0
21
: 8,
0
0
0
) cl
aims b
ein
g dis
mis
s
e
d in th
e ye
ar
.
JCI h
as a
l
s
o inc
ur
r
e
d sig
nif
i
ca
nt ad
di
tio
nal d
efe
nce c
os
t
s
. T
he l
it
iga
tio
n inv
ol
ve
s c
l
aim
s for a n
umb
er of a
ll
eg
edl
y as
be
s
tos-
r
el
ate
d di
se
as
e
s
,
w
ith a
w
ar
d
s
, w
hen m
ad
e, fo
r me
s
othe
l
iom
a ten
din
g to be l
a
r
ger t
han t
ho
se f
or th
e oth
er di
se
as
e
s
. JCI
’s abil
it
y to defen
d me
s
oth
el
iom
a
ca
s
es s
ucc
e
ss
f
ul
ly i
s, t
her
ef
or
e, l
ikel
y to ha
ve a si
gni
f
ic
ant i
mp
ac
t on i
t
s an
nua
l ag
gr
eg
ate ad
v
er
s
e ju
dg
em
ent an
d def
enc
e cos
t
s
.
John Crane, Inc. litigation provision
Th
e pr
o
v
is
ion i
s b
as
ed o
n pa
s
t his
to
r
y of JCI c
l
aim
s an
d we
ll-
e
s
ta
bl
ish
ed t
ab
le
s of a
sb
es
to
s-r
e
l
ated d
is
ea
s
e inc
ide
nce p
r
oje
c
ti
on
s.
Th
e pr
o
v
is
ion i
s dete
r
min
ed u
sin
g ad
v
i
ce f
r
om a
sbe
s
tos v
aluati
on e
xp
er
t
s, B
ate
s W
h
ite L
LC. T
h
e as
s
umpt
io
ns ma
de i
n as
s
e
ss
in
g the
app
r
opr
iate lev
el o
f pr
ov
i
si
on in
clu
de: th
e p
er
io
d o
ve
r w
hic
h the e
xp
en
di
tur
e c
an b
e r
el
iab
ly e
s
tim
ated; th
e f
ut
ur
e tr
en
d of le
ga
l cos
t
s;
the r
ate of fu
tur
e c
l
aim
s f
ile
d; the r
ate of suc
ce
ss
f
ul r
e
s
olu
ti
on of c
l
aim
s; and t
he a
ve
r
a
ge am
ou
nt of jud
ge
men
t
s aw
a
r
de
d. T
he p
r
ov
i
sio
n
uti
li
se
d in t
he p
er
i
od i
s lo
we
r tha
n pr
e
v
iou
s pe
r
io
ds
, p
r
inc
ip
al
ly du
e to co
ur
t clos
ur
e
s an
d tr
ia
l del
ays a
r
is
ing f
r
om t
he C
O
V
ID
-
1
9 pa
nde
mic
.
Man
ag
eme
nt be
li
ev
e
s thi
s r
edu
c
ti
on in u
til
is
a
tio
n is tem
po
r
ar
y u
ntil af
ter the ef
fec
t
s of t
he p
an
de
mic s
ubs
ide a
nd t
r
ial a
c
ti
v
i
t
y r
et
ur
n
s to pr
e
-
pandemic level
s
.
E
s
ta
bl
is
he
d inc
ide
nce c
ur
v
es c
a
n be u
se
d to e
st
ima
te the l
ikel
y f
ut
ur
e pat
ter
n of as
be
s
tos
-r
el
ate
d di
se
as
e
. Ho
we
v
er
, JCI’s cl
aim
s ex
pe
r
ie
nce
is al
so si
gni
fi
c
antl
y imp
ac
te
d b
y othe
r f
ac
to
r
s w
hic
h inf
lu
enc
e the U
S l
it
igat
io
n env
i
r
onm
ent
. T
he
s
e c
an in
clu
de: ch
an
gin
g app
r
oa
ch
es o
n th
e
pa
r
t of the pl
a
inti
f
f
s’ ba
r
; ch
ang
ing at
titu
de
s am
on
gs
t th
e jud
ici
ar
y at b
oth tr
ial and a
pp
el
l
ate le
ve
l
s in s
pe
ci
f
ic jur
isdi
c
ti
ons w
h
ich m
o
ve t
he
ba
l
anc
e of r
is
k an
d opp
or
tun
it
y for cl
aimant
s; a
nd le
gi
sl
at
i
ve an
d pr
o
ce
dur
al cha
nge
s i
n bot
h the s
t
ate an
d fe
der
al cou
r
t sy
s
tem
s.
Th
e pr
o
je
c
tio
ns u
se a l
im
ite
d tim
e ho
r
izo
n on th
e b
asi
s th
at Ba
tes W
h
ite L
L
C con
si
der t
hat t
her
e i
s sub
s
ta
ntia
l unce
r
tai
nt
y in t
he a
sb
es
to
s
li
ti
gati
on en
v
ir
on
me
nt. S
o p
r
ob
abl
e ex
pe
ndi
tu
r
es a
re n
ot r
ea
s
ona
bly e
s
ti
mab
le b
ey
on
d th
is ti
me ho
r
iz
on. A
sb
es
to
s is th
e lo
nge
s
t r
u
nnin
g
mas
s to
r
t lit
ig
atio
n in A
m
er
i
c
an hi
sto
r
y and i
s con
s
t
antl
y ev
ol
v
ing i
n w
ay
s th
at c
an
not b
e anti
cip
ate
d. J
CI's d
efen
ce s
tr
ateg
y al
s
o g
ene
r
ate
s
a sig
nif
ic
a
ntly d
if
fere
nt p
at
ter
n o
f le
gal c
os
t
s an
d se
t
tle
me
nt ex
pe
ns
e
s fr
o
m othe
r def
end
ant
s
. T
hu
s JCI i
s in an e
x
tr
e
mel
y r
ar
e p
os
it
ion
, an
d
ev
i
den
ce f
r
om oth
er l
it
ig
atio
n c
ann
ot b
e us
ed to i
mpr
o
ve t
he r
el
ia
bil
i
t
y of t
he p
ro
je
c
tio
ns
. A ten
-
ye
ar (
F
Y
2
0
21
: ten
-y
ea
r
) tim
e ho
r
izo
n ha
s be
en
us
ed b
as
e
d on p
as
t e
xp
er
i
enc
e re
ga
r
din
g sig
nif
i
ca
nt ch
ang
e
s in th
e li
ti
gati
on e
nv
ir
o
nme
nt th
at ha
ve o
ccu
r
r
ed e
v
er
y fe
w ye
ar
s a
nd o
n the
amo
unt of t
ime t
aken i
n the p
a
st f
or s
om
e of th
os
e ch
ang
e
s to imp
ac
t t
he b
ro
a
der a
sb
e
sto
s l
iti
gat
ion e
nv
i
ro
nm
ent
.
Th
e r
a
te of fu
tu
r
e cl
ai
ms f
ile
d ha
s b
een e
s
ti
mate
d usi
ng w
el
l-e
s
t
abl
i
she
d t
abl
e
s of as
be
s
tos in
ci
den
ce pr
o
je
c
tio
ns to d
eter
m
ine t
he l
ikel
y
pop
ul
at
io
n of pote
ntia
l cl
a
iman
t
s, a
nd J
CI’s pa
st e
xp
er
ience to d
eter
m
ine w
h
at pr
o
po
r
tion of t
his p
op
ul
at
ion w
i
ll m
ake a cl
a
im ag
ain
s
t
JCI
. T
he J
CI pr
o
duc
t
s g
en
er
ally r
efe
r
r
ed to in c
l
aim
s ha
d in
dus
t
r
ial a
nd m
ar
in
e app
l
ic
ati
on
s. A
s a re
s
ult
, the i
nci
de
nce c
ur
ve u
s
ed fo
r
JCI p
r
oje
c
ti
on
s excl
ude
s c
ons
t
r
uc
t
ion w
o
r
ker
s
, an
d is a c
omp
os
ite of t
he c
ur
ve
s th
at pr
e
dic
t a
sb
es
to
s ex
po
sur
e
-r
e
l
ated d
is
ea
s
e fr
om
shipyard
s and o
ther occupations. This is consisten
t with JCI’
s litigation
histor
y
.
Th
e r
a
te of suc
ce
s
sf
ul r
e
s
ol
uti
on of c
l
aim
s an
d the a
v
er
a
ge a
mo
unt of an
y jud
ge
me
nt
s aw
a
r
de
d ar
e pr
oj
ec
te
d b
as
ed o
n the p
a
st h
is
tor
y of
JCI c
l
aim
s
, sin
ce th
is is t
he b
e
st a
v
ail
able e
v
ide
nc
e, gi
v
en J
CI’s unus
ual s
tr
ateg
y of d
efen
din
g al
l cl
ai
ms
.
Th
e f
ut
ur
e tr
en
d of le
ga
l cos
t
s i
s es
t
imate
d b
as
ed o
n JC
I’s pas
t ex
p
er
ie
nc
e, ad
jus
te
d to ref
l
ec
t t
he as
s
ume
d le
v
el
s o
f cl
ai
ms an
d tr
i
al ac
t
i
v
it
y,
sin
ce th
e numb
er o
f tr
ia
l
s i
s a key dr
i
v
er o
f le
gal c
os
t
s
.
John Crane, Inc. litigation insurance recoveries
W
hil
e JCI h
as c
er
tai
n exce
s
s l
iab
il
it
y insu
r
an
ce, J
CI h
as me
t defe
nce c
os
t
s di
re
c
tl
y. The c
a
lcu
l
ati
on of t
he pr
o
v
is
ion d
oe
s n
ot t
ake acc
ount o
f
any potential
reco
ver
ies fr
om insurer
s.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
15
2
John Crane, Inc. litigation provision history
Th
e JC
I as
be
s
tos l
it
ig
atio
n pr
o
v
isi
on of £
22
9
m (F
Y
2
0
21: £212m) is a d
is
co
unted p
r
e-
ta
x pr
o
v
is
ion u
sin
g di
sc
ount r
ates
, be
ing t
he r
i
sk-fr
e
e
r
ate on U
S de
bt in
s
tr
um
ent
s f
or th
e ap
pr
op
r
iate p
er
i
od
. T
he d
efer
red t
a
x as
s
et r
el
ate
d to th
is pr
o
v
is
ion i
s sh
ow
n w
i
thi
n th
e defe
r
r
ed t
a
x
ba
l
anc
e (n
ote 6).
Th
e JC
I as
be
s
tos l
it
ig
atio
n pr
o
v
isi
on h
as d
ev
el
op
ed o
ve
r the l
ast f
i
v
e ye
ar
s a
s fo
ll
ow
s:
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Y
ear ended
31 Ju
l
y 2
0
2
0
£m
Y
ear ended
31 Ju
l
y 2
019
£m
Y
ear ended
31 Ju
l
y 2
018
£m
John Crane, Inc. litigation
provision
Gross pro
vision
25
8
220
235
257
2
51
Discount
(29)
(8)
(4)
(
20)
(28)
Discounted pre-tax provision
229
212
231
237
223
Deferred tax
(57
)
(5
4)
(
59)
(50)
(
4
8)
Discounted post
-tax prov
ision
17
2
15
8
17
2
18
7
17
5
Operating profit charge/(credit
)
Inc
r
ea
s
ed p
r
ov
i
si
on
s fo
r ad
ver
s
e ju
d
ge
me
nt
s an
d le
ga
l de
fen
ce c
os
t
s
24
10
14
7
13
Cha
ng
e in U
S r
i
sk-f
re
e r
ates
(18
)
(5)
16
8
(6)
Su
btot
al – i
te
ms c
ha
r
ge
d to th
e pr
o
v
i
si
on
6
5
30
15
7
Litigation management, legal
fees in connection with litigation
against insurers and
defence strateg
y
1
1
1
2
3
Recover
ies from insur
ers
–
(9)
(3)
(
11
)
–
T
ota
l op
er
atin
g pr
o
fi
t c
ha
r
ge
/
(c
r
ed
it
)
7
(3)
28
6
10
Cash-flow
Pr
o
v
is
io
n ut
il
i
s
ati
on – l
eg
al d
efe
nc
e co
s
t
s an
d ad
v
er
se ju
dg
em
ent
s
(
2
1)
(13
)
(
2
3)
(
24)
(
27)
Litigation management expens
e
(1)
–
(1)
(2)
(3)
Recover
ies from insur
ers
–
9
3
11
–
Net c
a
sh o
ut
flo
w
(22)
(4)
(
21)
(
15
)
(30)
John Crane, Inc. litigation provision sensitivities
Th
e pr
o
v
is
ion m
ay b
e su
bje
c
t to po
tenti
all
y mate
r
ial r
e
v
is
ion f
r
om t
ime to t
ime i
f ne
w inf
or
m
ati
on b
eco
me
s a
v
ail
a
ble a
s a r
es
ult o
f fu
tu
re
ev
ent
s
. T
he
r
e ca
n be n
o gua
r
a
ntee th
at th
e as
s
umpt
io
ns u
se
d to e
st
ima
te the p
r
ov
i
sio
n w
il
l re
s
ult in a
n acc
ur
a
te pr
ed
ic
ti
on of t
he a
c
tua
l
cos
t
s t
hat w
il
l be i
nc
ur
r
ed b
e
ca
us
e of th
e si
gni
fi
c
ant un
cer
ta
int
y ass
o
cia
ted w
i
th th
e f
ut
ur
e le
ve
l of as
be
s
tos c
l
aim
s an
d of the c
os
t
s ar
isin
g
out o
f re
l
ate
d li
ti
gati
on
.
John Crane, Inc. statistical reliability of projections over the ten-year time horizon
In or
d
er to ev
aluate th
e s
tat
is
ti
c
al r
el
iab
il
it
y of the p
r
oje
c
ti
on
s, a p
op
ul
at
ion o
f ou
tcom
es i
s mo
de
ll
ed u
sin
g r
an
do
mis
e
d ve
r
dic
t o
utco
me
s
.
Th
is g
ene
r
ate
d a di
st
r
ib
uti
on of o
utc
ome
s w
i
th f
ut
ur
e sp
en
d at th
e 5th p
er
ce
ntil
e of £
2
0
3m and f
u
tur
e sp
en
d at th
e 95
th p
er
cent
ile o
f £
26
8m
(F
Y
2
0
21: £
191
m and £
24
6m, r
e
sp
ec
t
i
ve
ly
). St
ati
st
ic
al a
nal
ys
is of t
he di
s
tr
ib
ut
io
n of the
s
e ou
tco
me
s in
dic
ate
s th
at th
er
e is a 5
0
% p
r
ob
abi
li
t
y
that t
he tot
al f
u
tur
e sp
en
d w
il
l f
all b
et
wee
n £
2
3
9
m and £
26
3
m (F
Y
2
0
21: bet
w
ee
n £
2
0
9m a
nd £
2
30
m
), com
pa
re
d to th
e gr
os
s p
r
ov
i
sio
n v
alu
e
of £
2
5
8
m (F
Y
2
021
: £
2
2
0
m).
John Crane, Inc. sensitivity of the projections to changes in the time horizon used
If th
e as
be
s
tos l
it
ig
atio
n en
v
ir
onm
ent b
ec
om
es m
or
e v
ol
at
ile a
nd un
cer
t
ain
, the t
ime h
or
izon ov
er w
h
ich t
he p
ro
v
i
sio
n c
an be c
a
lcu
l
ated
may r
e
du
ce. C
on
ve
r
s
ely, if th
e en
v
ir
on
ment b
e
ca
me m
or
e s
ta
ble
, or J
CI ch
an
ge
d app
r
oa
ch an
d co
mmi
t
te
d to lon
g-
ter
m s
et
tl
em
ent
ar
r
a
ng
eme
nt
s
, the t
im
e per
iod co
v
er
ed b
y th
e pr
o
v
isi
on m
ight b
e ex
tende
d.
Th
e pr
o
je
c
tio
ns u
se a te
n-
ye
ar t
ime h
or
i
zon
. Red
uc
ing t
he ti
me h
or
iz
on b
y on
e ye
ar w
oul
d r
ed
uce t
he pr
o
v
is
io
n by £18m (F
Y
2
021
: £1
7m) and
re
du
cin
g it b
y f
i
ve y
ea
r
s w
oul
d r
ed
uce t
he p
ro
v
is
io
n by £
9
7m (F
Y
2
0
21
: £9
3m).
We con
si
der
, af
te
r obt
ain
ing a
d
v
ic
e fr
o
m Bate
s W
h
ite L
LC
, that to f
or
ec
a
s
t be
y
ond te
n ye
ar
s req
uir
e
s th
at the l
i
tig
ati
on en
v
ir
on
ment r
e
mai
ns
l
ar
ge
ly un
cha
ng
ed w
i
th r
e
sp
ec
t to th
e hi
sto
r
ic
a
l ex
per
ience u
s
ed fo
r e
st
ima
tin
g fu
tu
re a
sb
e
sto
s ex
pe
nd
it
ur
es
. Hi
s
tor
ic
a
ll
y, the asb
e
s
tos
li
ti
gati
on en
v
ir
on
me
nt ha
s und
er
go
ne s
ign
if
ic
ant c
ha
nge
s m
or
e of
ten tha
n ev
er
y ten y
ea
r
s
. If o
ne a
ss
um
ed th
at th
e as
be
s
tos l
it
ig
atio
n
env
i
ro
nm
ent w
oul
d r
em
ain un
cha
ng
ed f
or lo
ng
er an
d ex
tende
d th
e tim
e hor
izon b
y one y
e
ar
, it wo
ul
d inc
re
as
e t
he pr
e
-t
a
x pr
ov
i
si
on
by £15m (F
Y
2
0
21: £
14m) a
nd e
x
ten
din
g it b
y f
i
ve y
e
ar
s w
ou
ld in
cr
ea
s
e the p
r
e-
ta
x pr
o
v
is
ion b
y £
5
6
m (F
Y
2
0
21: £5
8
m). Ho
w
e
ver
, the
r
e
ar
e al
s
o r
ea
s
on
abl
e sc
ena
r
io
s tha
t, gi
v
en c
er
tai
n r
ece
nt ev
ent
s in the U
S asb
e
s
tos l
it
igat
io
n env
i
ro
nm
ent
, wo
ul
d re
s
ult in n
o ad
di
tio
na
l
asb
e
s
tos l
it
igat
io
n for J
CI b
ey
on
d ten y
ea
r
s
. At th
is t
ime, h
o
w the a
sb
e
sto
s l
iti
gat
io
n env
i
ro
nm
ent w
il
l ev
ol
ve b
e
yo
nd ten y
e
ar
s i
s not
reasonably es
timable.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
15
3
John Crane, Inc. contingent liabilities
Pr
o
v
isi
on h
as b
ee
n ma
de fo
r f
ut
ur
e defe
nce c
os
t
s an
d th
e cos
t of a
d
v
er
s
e ju
dge
me
nt
s ex
pe
c
ted to o
cc
ur
. JCI’s cl
aim
s ex
pe
r
ie
nce i
s
sig
nif
ic
a
ntly i
mp
ac
te
d by ot
he
r fa
c
tor
s w
h
ich i
nf
lue
nce t
he U
S li
ti
gat
ion e
nv
ir
o
nme
nt
. Th
e
se c
a
n inc
lud
e: ch
ang
ing a
pp
ro
a
che
s o
n the p
ar
t of
the p
l
aint
if
fs’ bar; chan
gin
g at
ti
tu
de
s am
on
gs
t th
e jud
ici
ar
y at b
oth tr
ial and a
pp
el
l
ate le
ve
l
s; an
d le
gi
sl
ati
v
e an
d pr
o
ce
dur
al chan
ge
s in b
oth
the s
t
ate an
d fe
der
al cou
r
t sy
s
tem
s. A
s a re
s
ult
, w
hil
st th
e Gr
ou
p anti
cip
ate
s th
at as
be
s
tos l
it
ig
atio
n w
il
l cont
inu
e be
y
ond t
he p
er
i
od c
ov
er
e
d by
the p
r
ov
i
sio
n, t
he un
cer
t
aint
y sur
r
ou
ndi
ng th
e US l
i
tig
ati
on en
v
ir
on
men
t be
yo
nd t
his p
oin
t is su
ch th
at th
e co
st
s c
a
nno
t be r
el
ia
bly e
s
ti
mate
d.
Al
tho
ug
h the m
eth
od
ol
og
y u
se
d to c
alc
ul
ate t
he J
CI l
it
igat
io
n pr
ov
i
si
on c
an in t
he
or
y b
e app
l
ied to s
ho
w cl
a
ims a
nd c
os
t
s fo
r lon
ge
r pe
r
io
ds
,
the D
ir
ec
to
r
s co
ns
id
er
, bas
e
d on ad
v
i
ce f
r
om B
ate
s W
hi
te L
LC, th
at th
e le
ve
l of unc
er
ta
int
y reg
ar
di
ng th
e f
ac
tor
s use
d in e
s
tim
atin
g f
ut
ur
e
cos
t
s i
s too gr
e
at to pr
o
v
id
e for r
e
as
on
abl
e e
st
ima
tio
n of th
e num
ber
s of fu
tur
e c
l
aim
s
, the n
atu
re o
f suc
h cl
ai
ms o
r the c
os
t to r
e
so
lv
e the
m
for y
ea
r
s b
ey
on
d the te
n-
y
ear t
im
e hor
izon.
Titeflex Corporation
T
itef
le
x Co
r
p
or
at
io
n, a s
ubs
idi
ar
y of th
e Gr
ou
p in th
e F
lex-
T
ek di
v
is
ion
, ha
s r
ec
ei
ve
d a nu
mb
er of cl
aims in t
he U
S fr
o
m ins
ur
a
nce c
om
pa
nie
s
se
ek
ing r
e
co
mp
ens
e o
n a sub
ro
ga
ted b
as
is fo
r th
e ef
fe
c
t
s of d
ama
ge a
lle
g
edl
y c
aus
e
d by l
ig
htni
ng s
tr
i
kes in r
e
l
ati
on to it
s flex
ib
le ga
s
pip
ing p
r
odu
c
t
. It h
as al
so r
ec
ei
v
ed p
ro
du
c
t li
abi
li
t
y cl
aim
s re
ga
r
din
g thi
s pr
o
duc
t in t
he U
S, s
om
e in t
he fo
r
m of pu
r
po
r
ted cl
a
s
s ac
t
ion
s
.
T
itef
le
x Co
r
p
or
at
io
n be
li
ev
e
s that i
t
s p
ro
du
c
t
s ar
e a s
afe a
nd ef
fec
ti
v
e me
an
s of de
li
v
er
i
ng g
as w
he
n in
st
al
le
d in a
cco
r
dan
ce w
it
h th
e
man
uf
ac
t
ur
er
’s ins
tr
u
c
tio
ns an
d lo
c
al an
d na
tio
nal c
od
e
s. H
ow
e
ve
r
, some c
l
aim
s ha
ve b
e
en s
et
tl
ed o
n an in
di
v
id
ual b
a
sis w
i
th
ou
t adm
is
si
on
of li
abi
li
t
y
. Equ
i
v
ale
nt thi
r
d-
pa
r
t
y pr
o
duc
t
s i
n the U
S m
ar
ket-pl
a
ce f
ac
e sim
il
ar c
hal
le
nge
s
.
Titeflex Corporation litigation provision
Th
e co
ntin
uin
g pr
og
r
es
s of c
l
aim
s an
d th
e pat
tern o
f se
t
tle
me
nt, to
get
he
r w
ith r
e
cent m
ar
ket-p
l
ace a
c
ti
v
i
t
y, pr
o
v
ide s
uf
fic
ie
nt ev
i
den
ce
to re
co
gni
s
e a li
abil
i
t
y i
n the a
cco
unt
s
. T
he
r
efor
e p
ro
v
is
io
n has b
e
en ma
de f
or th
e co
st
s w
h
ich t
he G
r
oup i
s ex
pe
c
ted to i
ncu
r in r
e
spe
c
t of
fu
tu
re c
l
aim
s to th
e ex
te
nt th
at suc
h co
st
s can b
e r
el
iab
ly e
s
tim
ated
. T
itef
l
ex C
or
p
or
ation s
el
l
s f
le
xi
ble g
as p
ipi
ng w
i
th ex
tensi
v
e in
st
al
l
at
ion
and s
af
et
y guida
nce d
e
sign
e
d to as
su
re t
he s
af
et
y o
f the p
r
od
uc
t an
d min
imis
e t
he r
i
sk of da
ma
ge a
s
so
ci
ated w
i
th l
ight
nin
g s
tr
ike
s
.
Th
e as
s
ump
tio
ns m
ad
e in as
s
e
s
sin
g the a
pp
ro
pr
i
ate le
v
el of pr
o
v
is
ion
, w
hi
ch ar
e b
as
e
d on p
as
t ex
p
er
ie
nc
e, inc
lu
de: th
e pe
r
io
d ov
er w
h
ich
ex
pen
di
tur
e c
an b
e r
el
ia
bly e
s
tim
ate
d; the nu
mb
er of f
ut
ur
e s
et
tl
eme
nt
s; th
e av
er
a
ge a
mo
unt of s
et
t
lem
ent
s; an
d th
e imp
ac
t of s
t
at
ute
s of
re
po
se a
nd s
af
e ins
t
al
l
ati
on in
iti
ati
v
e
s on th
e ex
pe
c
te
d numb
er o
f fu
tu
re c
l
aim
s
. T
he a
ss
ump
tio
ns r
el
ating to t
he nu
mbe
r of f
ut
ur
e se
t
tl
eme
nt
s
excl
ude t
he u
se of r
e
ce
nt cl
ai
ms hi
s
tor
y du
e to the u
nce
r
tain i
mp
ac
t th
at th
e CO
V
ID-
1
9 loc
kdo
w
n ha
s ha
d on t
he nu
mbe
r of cl
a
im
s.
Th
e pr
o
v
is
ion o
f £5
2m (
F
Y
2
0
21
: £
47m) is a dis
co
unte
d pr
e
-t
ax p
r
ov
i
sio
n us
ing d
is
cou
nt r
ate
s
, be
ing t
he r
i
sk-fr
e
e r
ate o
n US d
ebt i
ns
tr
u
me
nt
s
for t
he ap
pr
op
r
iate p
er
iod. T
h
e def
er
r
e
d ta
x as
s
et r
el
ate
d to th
is p
ro
v
is
io
n is sh
ow
n w
i
th
in th
e defe
r
r
ed t
a
x ba
l
an
ce (
note 6
).
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Gross pro
vision
87
69
Discount
(35)
(22)
Discounted pre-tax provision
52
47
Deferred tax
(12
)
(
11
)
Discounted post
-tax prov
ision
40
36
Titeflex Corporation litigation provision history
A cha
r
ge of £
2
m (
F
Y
2
0
21
: £1
3m c
re
di
t
) h
as b
ee
n re
co
gni
s
ed b
y T
itef
l
ex C
or
p
or
ation i
n re
s
pe
c
t of ch
ang
e
s to the e
s
ti
mate
d co
st o
f fu
tu
re
cl
ai
ms f
r
om in
sur
ance c
omp
an
ie
s s
eek
in
g r
ec
omp
en
se f
or da
ma
ge al
le
ge
dl
y ca
us
ed b
y l
igh
tnin
g s
tr
ike
s
. T
he h
igh
er gr
os
s p
r
ov
i
sio
n v
al
ue
has b
e
en dr
i
v
en b
y fo
re
ign e
xcha
ng
e r
ate m
ov
em
ent
s a
nd an i
ncr
e
as
e in t
he av
er
age c
os
t pe
r cl
a
im. T
h
e inc
r
ea
se i
n the d
is
co
unt f
ac
to
r
der
i
v
e
s f
ro
m inc
r
ea
sin
g US d
ol
l
ar di
s
cou
nt r
ate
s
.
Titeflex Corporation litigation provision sensitivities
Th
e si
gni
fi
c
ant un
cer
t
aint
y as
so
ci
ated w
i
th th
e f
ut
ur
e le
ve
l of cl
a
ims a
nd of t
he co
s
t
s ar
i
sin
g ou
t of r
el
ate
d l
iti
gat
ion m
ea
ns t
hat t
her
e c
an
be n
o gua
r
ante
e th
at th
e as
su
mpt
ion
s us
e
d to es
ti
mate t
he pr
o
v
is
io
n w
ill r
e
su
lt in an a
cc
ur
ate p
r
edi
c
ti
on of th
e ac
t
ual c
os
t
s th
at w
il
l be
inc
ur
r
ed
. T
he
r
efor
e th
e pr
o
v
is
ion m
ay b
e su
bje
c
t to po
tenti
all
y mate
r
ial r
e
v
is
ion f
r
om t
ime to t
ime
, if n
ew i
nfor
m
ati
on b
ec
om
es a
v
ail
a
bl
e as a
re
s
ult of f
u
tur
e e
ve
nt
s
.
Th
e pr
o
je
c
tio
ns in
co
r
po
r
ate a l
on
g-te
r
m as
s
umpt
io
n re
ga
r
din
g the i
mp
ac
t of s
af
e ins
t
al
l
ati
on in
it
iati
v
e
s on th
e le
ve
l of f
ut
ur
e cl
a
ims
. I
f the
as
su
me
d ann
ual b
en
efi
t of b
on
din
g and g
r
oun
din
g ini
tia
ti
v
es w
er
e 0
.5
% hig
her
, the p
r
ov
i
sio
n w
oul
d be £
3
m (
F
Y
2
0
21
: £4
m
) lo
w
er
, and if t
he
ben
ef
it w
er
e 0
.5
% lo
w
er
, the pr
o
v
is
ion w
ou
ld b
e £
4m (
F
Y
2
0
21
: £
4m
) hi
gh
er
.
Th
e pr
o
je
c
tio
ns u
se a
s
sum
pti
on
s of f
ut
ur
e cl
ai
ms th
at ar
e b
as
e
d on b
oth th
e num
be
r of f
ut
ur
e se
t
tle
me
nt
s and t
he a
ve
r
a
ge am
ou
nt of
tho
s
e set
tleme
nt
s
. If t
he as
s
ume
d a
ver
age n
umb
er of f
u
tur
e s
et
t
lem
ent
s in
cr
e
as
ed 10
%, t
he p
ro
v
i
sio
n wo
ul
d r
is
e b
y £5
m (
F
Y
2
0
21
: £4
m
),
w
ith a
n eq
ui
v
al
ent f
al
l for a r
e
duc
t
io
n of 10%
. If t
he a
s
sum
ed a
mou
nt of th
os
e s
et
tl
eme
nt
s in
cr
ea
s
ed 10%
, t
he pr
o
v
is
ion w
o
uld r
i
s
e by £
4
m
(F
Y
2
0
21: £3m
), al
s
o w
i
th an e
qu
i
v
ale
nt f
all f
or a r
ed
uc
ti
on of 10
%
.
Other non-headline and legacy provisions
Non
-h
ea
dl
in
e pr
ov
i
si
on
s com
pr
i
se a
ll p
r
ov
i
sio
ns t
hat w
er
e di
sc
lo
se
d as n
on
-h
ea
dl
in
e item
s w
he
n the
y w
er
e ch
ar
ge
d to th
e co
ns
ol
id
ated
income statemen
t. Legac
y prov
isions comprise non-material prov
isions rel
ating t
o former business acti
v
ities and disconti
nued oper
ations
and p
r
op
er
tie
s no l
on
ger u
s
ed b
y Sm
ith
s
.
Thes
e non-material provisions include non-headline reor
ganisation, disposal indemnities, litigation and
ar
bitr
ation in
resp
ect of old
pr
od
uc
t
s an
d di
sc
onti
nue
d bu
sin
e
s
s ac
ti
v
i
ti
es
, w
hi
ch in
clu
de
s c
l
aim
s r
ece
i
ve
d in co
nn
ec
t
ion w
i
th t
he di
sp
os
al of S
mi
th
s Me
dic
al i
n the y
e
ar
.
Pr
o
v
isi
on i
s ma
de fo
r th
e be
s
t es
t
imate o
f the e
xp
ec
te
d ex
p
end
it
ur
e r
el
ate
d to the d
efe
nce a
nd
/or r
e
so
lu
tio
n of su
ch m
at
ter
s. T
her
e i
s an
inh
er
ent r
i
sk in l
eg
al pr
o
ce
ed
ing
s tha
t the o
utc
ome m
ay b
e unf
a
vo
ur
a
bl
e to the G
r
oup, a
nd a
s suc
h the
r
e c
an be n
o gu
ar
a
ntee t
hat s
uch
pr
ov
i
si
on
s (w
h
ich m
ay b
e su
bje
c
t to po
tenti
all
y mate
r
ial r
e
v
is
ion f
r
om t
ime to t
ime
) w
il
l be s
uf
fic
ient
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
15
4
Reorganisation
At 31 Ju
ly 2
0
2
2
, the
r
e we
re r
e
or
g
ani
s
atio
n pr
o
v
isi
on
s of £1
m (
F
Y
2
0
21
: £2
m
) re
l
ati
ng to th
e v
ar
i
ou
s re
s
tr
uct
ur
i
ng pr
o
gr
amme
s th
at ar
e
ex
pe
c
ted to b
e ut
il
is
ed i
n the n
ex
t 1
8 mont
hs
.
Property
At 31 Ju
ly 2
0
2
2
, the
r
e we
re p
r
ov
i
sio
ns o
f £10m (F
Y
2
0
21
: £1
1
m) re
l
ate
d to ac
tu
al an
d po
tenti
al en
v
ir
on
ment
al i
s
su
es f
or si
te
s cur
r
e
ntly o
r
prev
iously occupied by Smiths
oper
ations.
24
Share
c
apit
al
Nu
mb
e
r of s
ha
r
e
s
Avera
ge number
of s
ha
r
e
s
Issued
capital
£m
Consideration
£m
Or
di
n
ar
y sh
ar
e
s of 3
7
.5p e
a
ch
T
ot
al s
ha
r
e ca
p
it
a
l at 31 J
uly 2
0
2
0
3
9
6
,
2
11,1
8
0
3
9
6
,19
3
,
3
10
149
Is
s
ue of n
e
w eq
ui
t
y s
ha
r
es – e
xer
c
is
e of s
ha
re o
pt
io
ns
16
5
,9
3
4
1
5
7,
2
7
6
–
2
T
ot
al s
ha
r
e ca
p
it
a
l at 31 J
uly 2
0
21
3
9
6
,
3
7
7,11
4
39
6,35
0,58
6
149
Is
s
ue of n
e
w eq
ui
t
y s
ha
r
es – e
xer
c
is
e of s
ha
re o
pt
io
ns
131,942
1
25,354
–
2
Share buyb
acks
(3
4,
1
52,897)
(9,79
7
,72
9
)
(
13
)
(
5
11
)
T
ot
al s
ha
r
e ca
p
it
a
l at 31 J
uly 2
0
2
2
362,356,
15
9
386,678,21
1
13
6
Share c
apital s
tr
uc
ture
A
s at 31 J
uly 2
0
2
2
, th
e Co
mp
an
y’s is
sue
d sh
ar
e c
api
t
al w
a
s 3
62
,
3
5
6,
1
59 o
r
din
ar
y sha
r
es w
i
th a n
omi
nal v
a
lue o
f 37
.5p p
er s
har
e
. A
ll of t
he
is
su
ed s
har
e c
ap
it
al w
a
s in f
r
ee i
s
sue a
nd a
ll is
s
ue
d sh
ar
es a
r
e fu
ll
y pai
d.
Th
e C
omp
an
y’s or
din
ar
y sh
ar
e
s ar
e li
s
ted a
nd a
dmi
t
ted to t
r
a
din
g on th
e Mai
n Mar
ket o
f the L
on
do
n Sto
ck E
xchang
e. T
h
e Co
mp
an
y ha
s an
A
me
r
ic
an D
ep
os
it
ar
y Rec
eipt (
A
D
R
) p
ro
gr
amme a
nd on
e A
DR e
qu
ate
s to one o
r
din
ar
y sh
ar
e. A
s at 31 July 2
0
2
2
, 4
,
274,70
4 ord
ina
r
y shar
e
s
we
re h
el
d by t
he n
omin
e
e of the p
r
og
r
am
me in r
e
sp
ec
t o
f the s
a
me nu
mb
er of A
D
R
s in is
s
ue.
Th
e ho
ld
er
s o
f or
din
ar
y sh
ar
e
s ar
e ent
itl
ed to r
e
cei
v
e th
e Co
mp
an
y’s Repo
r
ts an
d A
cco
unt
s
, to at
ten
d an
d sp
ea
k at Ge
ner
al Me
etin
gs of
the C
om
pa
ny, to app
oint p
r
oxi
es a
nd to e
xer
cis
e v
otin
g r
i
ght
s
. Non
e of th
e or
di
nar
y s
har
e
s c
ar
r
y an
y sp
ec
ial r
ight
s w
it
h re
ga
r
d to cont
r
ol
of the C
o
mp
any o
r dis
t
r
ibu
ti
on
s ma
de b
y the C
om
p
any.
Th
er
e ar
e n
o kn
o
w
n agr
e
eme
nt
s r
el
at
ing to
, or r
e
st
r
ic
t
ion
s on
, v
otin
g r
ig
ht
s at
t
ac
he
d to the o
r
din
ar
y sha
r
es (
oth
er th
an th
e 4
8 hour c
ut-o
f
f
for c
a
st
ing p
r
ox
y vote
s pr
i
or to a G
ene
r
al M
ee
tin
g
). Th
er
e ar
e n
o r
es
tr
ict
io
ns on t
he t
r
an
s
fer of s
har
e
s
, an
d the
r
e is no r
e
qui
r
eme
nt to obt
ai
n
app
r
ov
a
l for a s
har
e tr
ans
fe
r
. Ther
e a
re n
o kn
o
w
n ar
r
ange
ment
s u
nd
er w
hi
ch f
ina
nc
ial r
i
ght
s ar
e h
el
d by a p
er
s
on o
the
r tha
n th
e hol
de
r of
the o
r
din
ar
y sha
r
es
. T
h
er
e ar
e no k
no
w
n l
imi
t
atio
ns o
n th
e hol
din
g of sh
ar
e
s
.
Power
s of Direc
tors
Th
e Di
re
c
tor
s are a
uth
or
i
s
ed to i
s
sue a
nd al
lo
t sha
re
s an
d to bu
y b
a
ck sh
ar
e
s sub
je
c
t to re
ce
i
v
ing s
har
e
hol
de
r app
r
ov
a
l at th
e Ge
ner
al
Mee
tin
g. S
uc
h aut
ho
r
it
ie
s we
r
e gr
a
nted b
y sh
ar
eh
ol
der
s at the 2
0
21 A
n
nua
l Ge
ner
al Mee
tin
g and t
he b
u
y ba
ck au
th
or
i
t
y wa
s sup
er
sed
ed b
y
the s
har
e
hol
de
r au
tho
r
i
t
y p
ro
v
id
e
d at the G
en
er
al Meet
in
g hel
d in No
v
emb
er 2
0
21. At th
e 2
0
2
2 AG
M, i
t w
ill b
e pr
o
po
se
d th
at th
e Dir
e
c
tor
s b
e
gr
a
nted n
ew a
uth
or
itie
s to al
lot a
nd b
u
y ba
ck sh
ar
e
s.
Share bu
y
back
s
A
s at 16 Se
ptemb
er 2
0
2
2 (
th
e l
ate
st p
r
a
c
tic
a
ble d
ate fo
r inc
lus
ion i
n thi
s r
epo
r
t
), the C
om
pa
ny h
ad an u
nex
pi
re
d au
th
or
i
t
y to r
e
pur
ch
as
e
or
din
ar
y sh
ar
e
s up to a ma
x
imum o
f 59m o
rd
ina
r
y sha
re
s (
F
Y
2
0
21
: 4
0
m
). A
s at 16 Se
ptemb
er 2
0
2
2
, th
e C
omp
an
y did n
ot h
old a
ny s
har
e
s in
tr
ea
sur
y. A
ny o
r
din
ar
y sha
r
es p
ur
ch
as
ed m
ay b
e c
an
cel
le
d or he
ld i
n tr
ea
sur
y.
In con
ne
c
ti
on w
it
h th
e s
ale of S
mi
th
s Me
dic
al to I
CU M
ed
ic
al
, In
c. (
s
e
e note 2
7 fo
r det
ai
l
s
), and in t
he l
ig
ht of ou
r st
r
ong b
al
ance sh
eet
and c
a
sh
-f
lo
w
s, t
he G
r
oup a
nno
unc
ed t
hat i
t inten
de
d to r
etur
n an amo
unt r
epr
e
s
ent
ing 5
5
% of th
e ini
ti
al c
as
h pr
o
cee
ds (
eq
uati
ng to an
ag
gr
eg
ate pur
ch
as
e p
r
ice o
f up to $1
bn or £
742m
) to sha
re
ho
ld
er
s i
n the f
or
m of a S
ha
re B
u
y
ba
ck P
r
og
r
am
me
. Al
l sh
ar
e
s pur
ch
as
e
d und
er
the P
r
og
r
am
me w
il
l b
e c
anc
ell
ed
. T
his P
r
o
gr
a
mme w
as ini
tiate
d on 19 Nov
emb
er 2
021 as a
nn
oun
ce
d to the L
on
do
n Sto
ck E
xc
han
ge o
n
1
1 Nove
mb
er 2
0
21 an
d fo
ll
ow
in
g sh
ar
eh
ol
der a
pp
ro
v
al a
t the G
en
er
al Meet
ing h
el
d on 17 Nove
mb
er 2
0
21.
A tota
l num
ber o
f 3
4
,
2
81,
92
9 o
r
din
ar
y sha
r
es of 3
7
.5 pe
nce e
ac
h we
re r
e
pur
ch
as
e
d dur
i
ng th
e pe
r
io
d, f
or a tot
al c
on
sid
er
a
tio
n of
£51
2,796
,99
9
, of wh
ich 129
,0
32 sh
ar
e
s w
it
h a v
alu
e of £1
,972
,6
0
2 w
er
e y
et to s
et
tl
e an
d be c
an
cel
le
d. T
h
e
se 3
4,
2
81,
92
9 s
har
e
s r
ep
re
s
ente
d
9
.4
6% of th
e c
all
ed u
p or
din
ar
y sh
ar
e c
ap
it
al a
s at 31 July 2
02
2
. A f
ur
ther 3
,
3
6
1
,59
9 ord
ina
r
y shar
e
s ha
v
e be
en r
ep
ur
cha
s
ed d
ur
in
g the
per
iod of 1 A
ug
us
t 2
0
2
2 to 16 Septe
mb
er 2
0
2
2
. A
ll r
ep
ur
ch
as
ed s
ha
re
s h
av
e be
en c
an
cel
le
d w
it
h th
e excep
tio
n of 128
,91
9 shar
e
s that w
er
e
yet to s
et
t
le an
d be c
a
nce
ll
ed a
s at 16 Septe
mbe
r 2
0
2
2
. Sin
ce 1 A
ug
us
t 2
0
2
2
, the n
umb
er of s
har
e
s in i
s
sue h
as r
e
duc
ed b
y 3
,
3
6
1
,
712 as at
1
6 September 202
2
.
Employ
ment share scheme
s
Sha
r
es a
cqu
ir
ed t
hr
ou
gh C
omp
an
y sh
ar
e s
che
me
s an
d pl
a
ns r
a
nk p
ar
i p
a
ss
u w
it
h the s
ha
re
s in i
s
su
e and h
av
e no s
pe
ci
al r
ig
ht
s
.
Th
e C
omp
an
y op
er
ates an E
mpl
o
ye
e Be
nef
i
t T
ru
st
, w
i
th an in
de
pe
nd
ent tr
uste
e, to h
old s
ha
re
s p
en
din
g emp
lo
ye
e
s be
co
min
g enti
tl
ed to
the
m und
er th
e C
omp
an
y’s sha
re s
ch
em
es a
nd p
l
an
s. O
n 31 Jul
y 2
0
2
2, t
he t
r
us
t he
ld 6
18,6
62 (
F
Y
2
0
21
: 3
26
,
3
6
4
) o
r
dina
r
y sha
re
s i
n the
Co
mp
any. T
he t
r
us
t w
ai
v
e
d it
s di
v
i
de
nd ent
it
lem
ent o
n it
s h
ol
din
g dur
i
ng th
e y
ear
, and t
he tr
ust a
bs
t
ain
s fr
o
m vot
ing a
ny s
har
e
s he
ld at
Gener
al Meetings.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
15
5
25 Di
v
idends
Th
e fo
ll
ow
i
ng di
v
i
den
ds w
er
e d
ec
l
ar
ed a
nd p
ai
d in th
e pe
r
io
d:
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Or
di
na
r
y fi
na
l di
v
i
de
nd of 2
6
.0
p (
F
Y
2
0
21: 24.
0
p) p
ai
d 19 Nov
em
be
r 2
0
21
10
3
94
Or
di
na
r
y del
aye
d int
er
i
m di
v
id
en
d of n
il (
F
Y
2
0
21: 1
1.0
p) p
ai
d 19 Nov
em
be
r 2
0
21
–
44
Or
di
na
r
y inte
r
im d
i
v
id
en
d of 12.
3
p (F
Y
2
0
2
1
: 1
1
.7p) pa
id 13 Ma
y 2
0
2
2
47
47
15
0
18
5
In th
e cur
r
e
nt ye
ar a tot
al di
v
i
de
nd of 3
8.
3p h
as b
ee
n pa
id, c
om
pr
i
sin
g a fi
nal d
i
v
id
end o
f 26.
0
p pa
id in r
e
sp
ec
t o
f F
Y
2
0
21 an
d an inter
im
di
v
id
end o
f 1
2
.
3p p
ai
d in r
es
pe
c
t of F
Y
2
0
2
2
. In t
he pr
ior ye
ar a tot
al d
i
v
id
end o
f 4
6.7p wa
s p
aid
, com
pr
i
sin
g a de
l
ay
ed i
nter
im d
i
v
id
end o
f 1
1
.0p
and a f
in
al di
v
i
de
nd of 2
4
.0
p p
aid i
n re
s
pe
c
t of F
Y
2
0
2
0 an
d an inte
r
im di
v
i
de
nd of 1
1
.7p paid in r
e
sp
ec
t o
f F
Y
2
0
21.
Th
e f
ina
l di
v
id
en
d for t
he y
ea
r end
ed 31 J
uly 2
0
2
2 of 2
7
.3
p pe
r sh
ar
e w
as r
e
com
me
nde
d b
y the B
o
ar
d on 2
2 S
e
ptem
be
r 2
0
2
2 and w
i
ll b
e p
aid
to sha
re
ho
ld
er
s o
n 18 Nove
mb
er 2
0
2
2
, sub
je
c
t to ap
pr
ov
al by th
e sha
r
eho
ld
er
s
. T
hi
s di
v
id
en
d is p
ay
a
bl
e to all s
har
e
ho
ld
er
s o
n the r
e
gis
te
r of
mem
be
r
s at 6.
0
0
pm o
n 21 O
c
tob
er 2
0
2
2 (t
he r
e
cor
d d
ate).
Wai
ver of
di
v
idends
Th
e fo
ll
ow
i
ng w
ai
v
e
d all d
i
v
id
end
s p
ay
ab
le in t
he y
ea
r
, and al
l fu
tu
re d
i
v
ide
nd
s
, on th
eir s
har
eh
ol
din
gs i
n the C
om
pa
ny
:
–
Numis No
min
ee
s L
im
ite
d (
Sm
ith
s In
dus
tr
ies E
mp
lo
ye
e Sh
ar
e T
ru
s
t
)
26 Reser
ves
Reta
ine
d ea
r
nin
gs i
ncl
ud
e the v
a
lue o
f Smi
th
s Gr
o
up pl
c sha
re
s h
eld b
y th
e Sm
it
hs In
dus
t
r
ie
s Em
pl
oy
ee B
en
ef
it T
r
us
t
. In th
e y
ear t
he
Co
mp
any i
s
su
ed ni
l (F
Y
2
0
21: 80
0
,6
0
6
) sh
ar
es to t
he T
r
us
t
, an
d the T
r
us
t p
ur
ch
as
ed 1,0
69
,9
9
8 sha
re
s (
F
Y
2
0
21
: 1,
126,970 sh
ar
e
s) i
n the m
ar
ket
for a c
ons
id
er
a
tio
n of £1
6m (
F
Y
2
0
21
: £1
6m
). At 31 Ju
ly 2
0
2
2
, th
e T
ru
s
t hel
d 6
1
8,
6
62 (
F
Y
2
0
21
: 3
26,
3
6
4) o
r
din
ar
y sh
ar
e
s.
Other re
ser
ves compr
ise the capi
tal redemption r
eser
ve, rev
aluation re
ser
ve and merger res
er
ve, which arose fr
om share repur
chase
s,
re
v
al
uat
ion
s of pr
o
pe
r
t
y, pl
ant an
d eq
uip
ment
, an
d me
rg
er a
cco
unti
ng fo
r bu
sin
es
s c
omb
ina
tio
ns b
efo
re t
he a
dop
tio
n of IF
R
S
, r
es
pe
c
ti
v
ely.
Capi
tal man
agement
Ca
pi
ta
l emp
lo
ye
d co
mpr
ise
s tot
al e
qui
t
y a
dju
s
ted fo
r go
od
w
i
ll r
e
co
gnis
e
d dir
e
c
tly i
n re
s
er
v
es
, n
et r
etir
e
ment b
en
ef
it-r
el
ate
d as
s
et
s a
nd
li
abil
i
tie
s
, ne
t li
ti
gati
on p
r
ov
i
sio
ns r
el
a
tin
g to no
n-
he
adl
in
e ite
ms an
d ne
t deb
t. T
h
e ef
f
ic
ie
nc
y o
f the a
ll
oc
at
ion o
f ca
pi
ta
l to the d
i
v
isi
on
s is
mon
ito
re
d th
r
oug
h the r
et
ur
n o
n c
api
t
al emp
lo
y
ed (
R
OCE
). Thi
s r
at
io i
s c
alc
ul
ate
d ov
er a r
ol
l
ing 12-mo
nth p
er
i
od an
d is t
he p
er
cent
a
ge th
at
he
adl
in
e op
er
a
tin
g pr
of
it c
om
pr
i
se
s of m
ont
hly a
ve
r
a
ge c
ap
it
al em
pl
oy
ed
. In F
Y
2
0
2
2 R
O
CE w
as 14
.2
% (
F
Y
2
0
21
: 13.2
%); se
e no
te 2
9
.
Ca
pi
ta
l st
r
uc
t
ur
e is b
as
e
d on th
e Di
re
c
tor
s
’ ju
dg
eme
nt of th
e ba
l
anc
e r
equ
ir
ed to m
aint
ai
n fl
ex
ibi
li
t
y, w
hil
st ac
hie
v
in
g an ef
fic
ient c
os
t
of capital
.
Th
e F
Y
2
0
2
2 r
atio of ne
t deb
t to he
adl
in
e EB
I
T
DA of 0
.
3 (F
Y
2
021
: 1
.6
) is w
i
thi
n the G
r
oup’s sta
ted p
ol
ic
y of 2.
0 or le
s
s o
ve
r the m
ed
ium ter
m.
Th
e Gr
o
up’
s r
ob
us
t ba
l
an
ce sh
eet a
nd r
e
cor
d of s
t
ro
ng c
a
sh ge
ne
r
at
ion a
re m
or
e th
an a
ble to f
un
d imm
ed
iate in
ve
s
tm
ent n
ee
ds a
nd le
ga
c
y
obl
ig
ati
on
s. S
e
e no
te 2
9 for t
he d
efi
nit
io
n of he
ad
li
ne E
BI
T
DA a
nd t
he c
alc
ul
at
io
n of thi
s r
at
io.
A
s p
ar
t of it
s c
a
pi
ta
l man
ag
eme
nt, t
he G
r
oup m
aint
ain
s a s
ol
id in
v
es
tm
ent g
r
ad
e cr
e
dit r
atin
g to ens
ur
e ac
ce
s
s to the w
i
de
s
t po
s
sib
le
so
ur
ce
s of f
ina
nci
ng an
d to op
timi
s
e the r
e
su
lti
ng co
s
t of c
api
t
al
. A
t 31 July 2
02
2
, the G
r
oup h
ad a c
r
edi
t r
at
in
g of BBB
+
/
B
aa
2 (F
Y
2
021
: BBB
+
/
Ba
a2
) w
i
th S
ta
nd
ar
d & Po
or
’s and Mo
od
y
’s re
spe
c
ti
v
el
y.
Th
e B
oa
rd h
as a p
r
og
re
s
si
v
e di
v
i
den
d po
l
ic
y f
or f
ut
ur
e p
ay
-
ou
t
s
, w
ith t
he ai
m of inc
r
ea
sin
g di
v
i
den
ds in l
in
e w
it
h th
e lon
g-
ter
m un
de
r
ly
in
g
gr
ow
th in e
ar
n
ing
s. I
n se
t
tin
g th
e le
ve
l of di
v
id
en
d pa
y
me
nt
s
, the B
o
ar
d w
il
l ta
ke into acc
ount p
r
ev
a
il
ing e
co
no
mic c
ond
it
ion
s an
d f
utu
r
e
inv
e
st
me
nt pl
an
s
, alo
ng w
i
th t
he ob
je
c
ti
v
e to mai
nta
in a min
imum d
i
v
id
end c
ov
er of a
t lea
s
t t
w
o t
ime
s
.
Hedge reser
ve
T
he h
ed
ge r
e
s
er
v
e on t
he b
al
a
nc
e sh
ee
t re
c
or
d
s th
e cum
ul
a
ti
v
e ga
in or l
os
s o
n de
s
ig
nate
d h
ed
gi
ng in
s
tr
umen
t
s
, an
d com
pr
ise
s:
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Net i
nv
e
s
tm
ent h
ed
ge r
e
s
er
v
e (n
et o
f £8
m of d
ef
er
r
e
d ta
x (
F
Y
2
0
21: £8m
)
(205)
(
23
0)
Ca
sh
-f
l
ow h
e
dg
e r
es
e
r
ve
3
2
(202)
(2
28)
Se
e tr
ans
a
c
tio
nal c
ur
r
en
c
y e
xp
os
ur
e r
is
k man
ag
em
ent di
sc
lo
sur
e
s in n
ote 19 for add
iti
on
al de
ta
il
s of c
a
sh
-f
lo
w he
dg
es
, a
nd tr
ansl
ation
al
cur
r
e
nc
y e
xp
os
ur
e r
i
sk ma
na
gem
ent di
s
clo
sur
e a
l
s
o in no
te 1
9 fo
r ad
dit
ion
al d
eta
il
s o
f net in
ve
s
tm
ent h
ed
ge
s
.
Non-
contr
oll
ing inter
es
t
Th
e Gr
o
up ha
s r
ec
or
de
d no
n-
c
ontr
o
ll
in
g inter
e
s
t
s of £
2
2
m (F
Y
2
0
21: £21m), of wh
ich t
he m
os
t si
gni
f
ic
ant b
al
a
nce i
s in Jo
hn Cr
ane Ja
pa
n Inc
.,
w
hic
h re
pr
e
se
nted £
20
m (
F
Y
2
0
21
: £
2
0
m) of t
he tot
al n
on
-
cont
r
ol
li
ng inte
re
s
t
s
.
Th
e no
n-
c
ontr
o
ll
in
g inter
e
s
t in Jo
hn Cr
ane Ja
pa
n Inc
. r
ep
r
es
ent
s a 3
0
% intere
s
t
. Jo
hn Cr
ane Jap
an I
nc
. ge
ner
ated op
er
ating p
r
of
it
s of £
5
m
in th
e per
iod (
F
Y
2
0
21
: £5
m
), and c
a
sh inf
l
ow
s f
r
om o
pe
r
at
ing a
c
ti
v
i
tie
s of £
5
m (F
Y
2
021
: £6
m). I
t pa
id di
v
i
de
nds o
f £1
m (F
Y
2
0
21: £2m
) an
d ta
x
of £1
m (F
Y
2
0
21: £3m
). At 31 J
uly 2
0
2
2
, th
e com
pa
ny c
ontr
ibute
d £
57m (F
Y
2
021
: £5
7m) of n
et a
ss
et
s to t
he G
ro
up.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
15
6
27 Discon
ti
nued ope
r
atio
ns and bus
inesses held for sale
Fol
lo
w
in
g th
e Bo
ar
d d
eci
si
on in J
uly 2
0
21 to p
ur
s
ue a s
al
e pr
o
ce
s
s, t
he S
mi
ths M
ed
ic
al b
usi
ne
s
s w
as c
l
as
s
if
ie
d as a d
is
cont
inu
ed o
pe
r
at
ion
and a b
us
ine
s
s he
ld fo
r s
ale
. On 8 S
e
ptem
be
r 2
0
21, the Gr
oup a
nno
unc
ed t
hat i
t ha
d agr
e
ed t
he s
a
le of S
mit
hs M
ed
ic
al to I
CU Me
di
ca
l
, Inc
.,
and t
he ap
pr
o
v
al of S
mi
ths s
ha
re
ho
ld
er
s w
a
s r
ec
ei
ve
d at th
e Ge
ne
r
al M
eet
in
g on 17 Nove
mbe
r 2
0
21.
Th
e s
al
e w
as c
omp
lete
d on 6 J
anu
ar
y 2
0
2
2 an
d the r
e
su
lt
s of t
he di
sc
ont
inu
ed op
er
atio
n and t
he ef
fec
t of th
e di
sp
os
al o
n the f
in
an
cia
l
po
sit
io
n of the G
r
oup w
er
e a
s fol
lo
w
s:
Dis
continued o
per
ations
Th
e f
ina
nc
ial p
er
for
m
anc
e of th
e Smi
th
s Me
dic
a
l bu
sin
es
s in t
he c
ur
r
ent a
nd p
r
io
r ye
ar
s i
s pr
e
se
nted b
el
ow
:
Year e
n
de
d 31 J
u
ly 2
0
22
Year e
n
de
d 31 J
ul
y 2
0
2
1
Headline
£m
Non-headline
(n
ot
e 3)
£m
To
t
a
l
£m
Headline
£m
Non-headline
(n
o
te 3
)
£m
To
t
a
l
£m
Revenue
356
–
356
8
49
–
8
49
Direct materials
, labour
, produc
tion and
distr
ibution overheads
(19
3
)
–
(19
3
)
(3
85)
–
(385)
Sell
ing costs
(4
6)
–
(
4
6)
(
11
7
)
–
(
117
)
Administr
ati
ve expense
s
(
51)
(
47
)
(98)
(
17
0
)
(
79)
(
249
)
Oper
ating costs
(2
90)
(
47
)
(
337
)
(
67
2
)
(79)
(
7
51)
Operating profit
66
(
47
)
19
17
7
(
7
9)
98
Finance cos
ts
(1)
(22)
(
2
3)
(
1)
50
49
Gain on
sale of discontinued
oper
ation
–
1,
0
3
6
1,
0
3
6
–
–
–
T
axation
(
16
)
6
(
10
)
(42)
23
(
19
)
Profit from discontinued operation
s
49
973
1,
0
2
2
13
4
(6)
12
8
Inter
e
s
t ca
pi
ta
li
se
d a
s pa
r
t of the co
s
t
s of Sm
ith
s Me
di
ca
l de
ve
lo
pme
nt pr
o
jec
t
s a
mo
unte
d to £1
m (F
Y
2
0
21
: £
3m
). £
nil (
F
Y
2
0
21
: £1
m) of t
a
x
re
li
ef ha
s be
en r
e
co
gni
se
d as c
ur
r
ent t
a
x r
el
ief in t
he p
er
i
od
. T
he ga
in on s
a
le of t
he Sm
it
hs M
edi
c
al di
sc
onti
nue
d op
er
ation
s qu
al
if
ie
d fo
r the
Sub
s
ta
ntia
l Sh
ar
eh
old
ing E
xempt
ion a
nd c
ons
e
que
ntl
y w
as n
ot sub
je
c
t to cor
por
a
tio
n ta
x
.
Addi
tional
se
gmental
infor
matio
n for
disco
ntinued o
per
ations
Hea
dl
in
e op
er
a
tin
g pr
of
it f
or di
sc
ont
inu
ed o
per
atio
ns w
a
s s
tate
d af
ter cha
rg
in
g sha
re
-
ba
s
ed p
ay
m
ent
s £
2
m (
F
Y
2
0
21
: £1
m).
Rev
enu
e for t
he S
mi
ths M
ed
ic
al di
s
cont
inu
ed o
pe
r
at
ion i
s ana
ly
s
ed b
y th
e fol
lo
w
in
g pr
o
duc
t l
in
e
s: Inf
usi
on S
y
ste
ms £1
1
6m (
F
Y
2
0
21
: £3
03
m
),
Vas
cu
l
ar A
cce
s
s £13
4m (
F
Y
2
0
21
: £
2
7
2m
) and V
it
al C
ar
e
/
O
the
r £106m (
F
Y
2
0
21
: £
2
7
4m
).
Rev
enu
e by d
e
st
ina
tio
n for t
he S
mi
ths M
ed
ic
al fo
r di
sc
onti
nue
d op
er
ation
s is a
nal
y
se
d as f
ol
lo
w
s: A
me
r
ic
a
s £1
7
6m (
F
Y
2
0
21
: £4
56
m), Eur
o
pe
,
Mid
dle E
a
s
t & Af
r
i
c
a £91m (F
Y
2
0
21
: £
2
2
8
m), an
d A
sia-
P
aci
f
ic £
8
9m (
F
Y
2
0
21
: £1
6
5m
). Rev
en
ue b
y de
s
tin
ati
on ha
s b
een s
e
lec
te
d a
s the b
a
sis
for at
tri
bu
tin
g r
ev
enu
e to ge
og
r
ap
hi
ca
l ar
ea
s as t
his i
s th
e at
tr
ibut
ion u
se
d b
y man
ag
em
ent to r
ev
i
ew t
he p
er
for
m
an
ce of th
e bu
sin
es
s
.
Rev
enu
e by d
e
st
ina
tio
n at
tr
ibut
ab
le to th
e Uni
ted K
ingd
om w
a
s £1
2m (
F
Y
2
0
21
: £
26
m). Re
ve
nue e
ar
n
ed i
n th
e Uni
ted St
ate
s of A
m
er
i
c
a w
as
mater
ial tota
ll
in
g £1
6
1
m (F
Y
2
0
21
: £41
1m).
Ca
sh-f
lo
w f
rom
disco
ntinued o
per
ations
Cash-flow
s from discontinued operations included in
the consolidated cash-flow statement are as
follow
s:
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
repres
ented*
£m
Net cash inflow from oper
ating acti
vitie
s
47
16
3
Net c
a
sh
-f
lo
w u
s
ed i
n inv
e
s
ti
ng a
c
ti
v
i
ti
e
s
(
17
)
(
67
)
Net c
a
sh
-f
lo
w u
s
ed i
n fi
na
nc
in
g ac
t
i
v
it
ie
s
(14
)
(6
8)
Ne
t in
cr
ea
s
e in c
a
s
h an
d c
as
h e
qu
i
va
l
en
t
s
16
28
Op
en
in
g c
as
h an
d ca
sh e
q
ui
v
al
en
t
s in di
sp
os
al gr
oup
48
20
Foreign exchange
movements
(7)
–
C
as
h an
d c
a
sh e
qu
i
v
al
en
t
s di
s
po
s
ed o
f
(57)
–
C
as
h an
d c
a
sh e
qu
i
v
al
en
t
s at c
l
os
e of p
e
r
io
d
–
48
*
£15m o
f in
tr
a-
gr
o
up r
o
y
a
lt
y cha
r
g
e
s pa
i
d by d
i
sc
o
nt
in
ue
d o
pe
r
a
ti
o
ns t
o co
nt
i
nu
in
g op
e
r
a
ti
on
s i
n F
Y2
0
2
1, th
at w
e
r
e pr
e
v
i
ou
s
ly n
et
t
ed d
o
w
n
, ha
v
e b
ee
n r
ep
r
e
s
en
te
d on a g
r
o
s
s up b
a
si
s w
i
th
in
ne
t c
as
h in
f
lo
w f
r
o
m op
e
r
at
in
g a
c
ti
v
i
t
ie
s a
n
d ne
t c
as
h
-f
l
ow u
s
e
d in f
i
na
n
ci
ng a
c
t
i
v
it
i
es
, a
s t
hi
s r
ep
r
e
s
en
t
s a co
m
pl
et
e v
ie
w o
f th
e op
e
r
a
ti
ng c
a
s
h f
lo
w
s at
tr
ib
u
t
ab
le t
o Sm
i
th
s M
ed
i
c
al
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
15
7
Effec
t of disposal on t
he financi
al posit
ion of th
e Group
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Intangible as
set
s
69
5
Pr
o
pe
r
t
y, pl
an
t an
d eq
uip
me
nt
17
0
Ri
ght of u
s
e as
s
et
s
64
Inventories
16
6
Def
er
r
e
d t
ax a
s
s
et
s
20
Cur
rent t
a
x r
ec
ei
v
a
bl
e
3
T
r
ad
e an
d ot
he
r re
ce
i
v
ab
le
s
11
0
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
57
Financial der
iv
ative
s
4
Lease liabil
ities
(
41
)
T
r
ad
e an
d ot
he
r pa
y
ab
le
s
(167
)
Cur
rent t
a
x p
ay
a
bl
e
(13
)
Deferr
ed tax liabilitie
s
(56)
Retirement benefit obligations
(5
)
Prov
isions
(39)
Net assets disposed of
96
8
Consider
ation received:
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
1,
4
2
1
T
ransac
tion costs
(
3
1)
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
, n
et of t
r
a
ns
a
c
ti
on c
os
t
s
1
,390
IC
U Me
di
c
al
, In
c sh
ar
e
s
426
Deferr
ed contingent consideration – contingent
on ICU Medical, Inc future shar
e price:
– Fair v
alue a
t date o
f di
sp
os
a
l
30
– Mo
ve
me
nt in f
a
ir v
al
ue t
o 31 Jul
y 2
0
2
2
(
11
)
19
Separ
ation expenses – arising from contractual and commercial obligations
due to
the separation recognised in year
(32)
Gain on
sale before reclassif
ication of
foreign currenc
y translation reser
ve
835
E
xch
an
g
e mo
ve
me
nt
s r
e
c
y
cl
ed to t
he i
nc
om
e s
ta
tem
ent
196
Ca
sh
-f
l
ow h
e
dg
e r
es
e
r
ve r
e
c
y
cl
ed to t
he i
nc
om
e st
at
em
ent
5
Gain on sale of
discontinued oper
ation
1,0
3
6
Net c
a
sh i
nf
lo
w ar
i
si
ng o
n di
sp
os
a
l:
Co
ns
id
er
atio
n r
ec
ei
v
ed i
n c
as
h an
d c
as
h eq
ui
v
a
le
nt
s
1,
4
2
1
T
ransac
tion costs and separ
ation expenses paid in
perio
d
(3
3)
Le
s
s c
a
sh an
d c
a
sh e
qui
v
alent
s d
is
po
s
ed o
f
(57)
1,
3
31
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
15
8
28 C
ash-
flow
Ca
sh-f
lo
w f
rom
oper
ating ac
ti
v
i
ties
Year e
n
de
d 31 J
u
ly 2
0
22
Ye
ar e
n
de
d 31 J
u
ly 2
0
2
1 r
ep
r
e
se
nt
e
d*
Headline
£m
Non-headline
£m
To
t
a
l
£m
Headline
£m
Non-headline
£m
To
t
a
l
£m
Oper
ating profit
– continuing
oper
ations
417
(
300)
117
372
(
4
6)
3
26
– discontin
ued oper
ations
66
(
47
)
19
17
7
(
79)
98
Amor
tisation of
intangible
ass
ets
10
51
61
14
53
67
Impair
ment of intangible asset
s
–
4
4
1
52
53
Impair
ment of tangible ass
ets
–
–
–
–
6
6
Impairment of investment within discontinued oper
ations
–
14
14
–
–
–
De
pr
e
ci
ati
on o
f pr
op
e
r
t
y, pl
ant a
nd e
qu
ip
me
nt
38
–
38
39
1
40
De
pr
e
ci
ati
on o
f r
ig
ht of u
se a
s
s
et
s
30
–
30
32
–
32
(G
ain
)
/
l
os
s o
n dis
p
os
al o
f pr
o
pe
r
t
y, pl
an
t an
d eq
uip
me
nt
(2)
–
(2)
1
–
1
Share-ba
sed payme
nt
expense
13
–
13
13
–
13
Retirement benefits*
*
5
207
2
12
6
(
2
3)
(
17
)
Distr
ibution fr
om trading inve
stment
–
–
–
5
–
5
Rec
ycl
in
g of c
a
sh
-f
lo
w h
ed
g
e re
s
er
v
e
–
–
–
(5
)
–
(5)
Decrease/(increase) in
inven
tories
(17
3
)
4
(16
9
)
62
4
66
Decrease/(increase) in
trade and
other
receivables
(87)
4
(83)
(14
)
4
(10
)
Inc
r
ea
s
e
/
(d
ec
r
ea
s
e) i
n tr
a
d
e an
d oth
er p
a
y
ab
le
s
131
(2)
12
9
46
(
10
)
36
Increase
/(decr
ease) in provisions
(1)
22
21
(4)
(
26)
(30)
Cash gener
ated from oper
ations
4
47
(
4
3)
404
74
5
(6
4
)
6
81
In
te
rest pa
id
(
51)
–
(
51)
(
40)
–
(
40)
In
te
rest rec
eived
13
1
14
2
1
3
Ta
x
p
a
i
d
(88)
–
(88)
(10
9
)
–
(
10
9
)
Net cash inflow
from operating activities
321
(42)
279
598
(63
)
535
– continuing
oper
ations*
2
74
(42
)
232
430
(5
8)
372
– discontinued operations*
47
–
47
16
8
(5)
16
3
*
£15
m of i
nt
r
a
-
gr
o
up r
o
y
a
lt
y ch
ar
g
e
s p
ai
d by d
i
s
co
nt
in
ue
d o
p
er
ati
on
s to c
o
nt
in
ui
ng o
p
er
ati
on
s i
n F
Y2
0
2
1 h
av
e b
e
en r
e
pr
e
s
en
te
d a
s c
as
h in
f
lo
w
s f
r
o
m di
s
co
nt
in
u
ed o
p
er
ati
on
s
, a
s th
i
s
re
p
r
es
e
nt
s a c
o
mp
le
te v
i
e
w of t
he o
p
er
ati
ng c
a
s
h f
lo
w
s at
tr
ib
u
t
ab
le t
o Sm
i
th
s M
ed
i
c
al
.
* * T
h
e r
et
ir
e
m
en
t be
n
ef
i
t
s no
n
-
he
a
dl
i
ne o
p
er
ati
ng a
c
ti
vi
ti
e
s pr
inc
ip
a
ll
y r
el
ate to e
mp
l
oy
e
r co
nt
r
i
bu
t
io
n
s to l
eg
a
c
y d
ef
i
ne
d b
en
ef
i
t a
nd p
o
s
t-r
e
ti
r
em
e
nt h
ea
lt
h
c
ar
e p
l
an
s
.
Headl
ine c
a
sh me
asur
es
– continuing
oper
ations
Th
e Gr
o
up me
as
ur
e of h
ea
dl
ine o
pe
r
ati
ng c
a
sh exc
lud
e
s inter
e
s
t and t
a
x
, and i
nc
lud
es c
a
pi
ta
l ex
pe
ndi
tu
re s
upp
or
tin
g or
g
ani
c gr
ow
th
.
Th
e Gr
o
up us
e
s op
er
ating c
a
sh
-fl
o
w for t
he c
alc
ul
at
io
n of c
ash c
on
ve
r
si
on an
d fr
e
e c
as
h-f
l
ow f
or ma
na
gem
ent of c
a
pit
a
l pur
p
os
e
s
.
Se
e n
ote 2
9 for a
dd
it
ion
al d
eta
il
s
.
Th
e t
abl
e be
lo
w r
ec
onc
ile
s th
e Gr
o
up’
s net c
a
sh
-f
lo
w fr
o
m op
er
at
in
g ac
ti
v
i
ti
es to h
ea
dl
ine o
pe
r
at
ing c
a
sh
-f
lo
w an
d fr
e
e c
ash
-f
lo
w:
Year e
n
de
d 31 J
u
ly 2
0
22
Year e
n
de
d 31 J
ul
y 2
0
2
1
Headline
£m
Non-headline
£m
To
t
a
l
£m
Headline
£m
Non-headline
£m
To
t
a
l
£m
Net cash inflow
from operating activities
2
74
(42)
232
43
0
(5
8)
372
Include:
E
x
pe
nd
it
ur
e o
n c
api
t
al
i
se
d de
v
el
op
me
nt
, oth
er i
nt
an
gib
le a
s
s
et
s
an
d pr
op
e
r
t
y, pl
ant a
nd e
qu
ip
me
nt
(
7
1)
–
(
7
1)
(62)
–
(62
)
Repayment of lease liabilitie
s
(34)
–
(34
)
(33)
–
(
3
3)
Disposal
s of
proper
ty, plant
and equipme
nt
3
–
3
–
–
–
Inves
tment in
financial ass
ets rel
ating to operating acti
vitie
s and
pe
ns
io
ns f
in
an
ci
ng o
ut
st
an
din
g at t
he b
al
a
nc
e sh
ee
t date
–
–
–
7
–
7
Free
cash
-flow
13
0
284
E
xcl
ud
e:
Inves
tment in
financial ass
ets rel
ating to operating acti
vitie
s and
pe
ns
io
ns f
in
an
ci
ng o
ut
st
an
din
g at t
he b
al
a
nc
e sh
ee
t date
–
–
–
(7
)
–
(7
)
Repayment of lease liabilitie
s
3
4
–
3
4
33
–
3
3
In
te
rest pa
id
4
6
–
4
6
24
–
24
In
te
rest rec
eived
(13
)
–
(
13
)
(2)
–
(2)
Ta
x
p
a
i
d
79
–
79
96
–
96
Operating cash
-flow
3
18
(42)
2
76
4
86
(5
8)
428
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
15
9
Headline
ca
sh conver
sion
Headline oper
ating cash conversion for con
tinuing operations is calculated as
follow
s:
Year e
n
de
d 31 J
u
ly 2
0
22
Year en
d
e
d 31 Ju
l
y 2
0
21
A
s re
p
or
te
d
£m
Restruc
turin
g
cost
s
£m
Pro-forma
excluding
restr
uctur
ing
cost
s
£m
As reported
£m
Restr
uctur
ing
costs
£m
Pro-fo
rma
excluding
res
truc
tur
ing
costs
£m
Headl
ine oper
ating prof
it
41
7
–
417
372
21
39
3
Headl
ine oper
ating cash
-flo
w
318
14
332
486
24
51
0
Headline operating cash conversion
76%
80%
13
0
%
12
9
%
Rec
oncili
ation o
f free cash-flow to net move
ment i
n cash and cash equivalents:
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Free
cash
-flow
13
0
284
Inv
e
s
tm
ent i
n f
ina
nc
ia
l as
s
et
s a
nd a
cq
ui
si
tio
n of b
us
in
es
s
e
s
–
(8
3)
Disposal of businesses and discontinued
oper
ations
1,
3
3
1
–
O
th
er n
et c
as
h-
fl
o
w
s us
e
d in f
in
an
ci
ng a
c
ti
v
i
ti
es (
n
ote: r
e
pa
y
me
nt of l
ea
s
e l
iab
il
i
ti
es i
s in
cl
ud
ed i
n fr
e
e c
a
sh
-f
lo
w
)
(9
37
)
(
13
8
)
Net d
ec
r
ea
s
e in c
a
sh a
nd c
a
sh e
qu
i
v
al
ent
s f
or di
s
co
nti
nu
ed o
pe
r
a
tio
n
s
16
28
Ne
t in
cr
ea
s
e
/(d
e
cr
ea
s
e) i
n c
as
h an
d c
a
sh e
qu
i
v
al
en
t
s
540
91
29 A
lt
ernative per
formance m
easures and k
ey pe
r
formanc
e ind
icat
ors
Th
e Gr
o
up us
e
s s
ev
er
al alter
n
ati
v
e pe
r
for
ma
nce m
ea
su
re
s (
‘
A
P
Ms’) i
n or
de
r to pr
o
v
ide a
dd
it
ion
al u
sef
ul i
nfor
matio
n on un
de
r
ly
in
g
tr
en
ds an
d th
e per
fo
r
man
ce an
d p
osi
ti
on of th
e Gr
o
up. A
P
M
s ar
e no
n-
G
A
A
P a
nd no
t def
in
ed b
y IF
R
S; th
er
efo
re
, the
y ma
y no
t be di
r
ec
tl
y
com
pa
r
ab
le w
i
th oth
er c
omp
an
ie
s’ AP
M
s and s
ho
uld n
ot b
e con
si
der
e
d a sub
s
ti
tu
te for IF
R
S m
ea
sur
e
s
.
Th
e Gr
o
up us
e
s th
es
e me
a
sur
e
s
, w
hic
h ar
e co
mmo
n ac
ro
s
s the i
nd
us
tr
y, for pl
a
nni
ng an
d r
ep
or
ting p
ur
p
os
e
s
, to enh
anc
e th
e com
pa
r
ab
il
it
y
of info
r
mat
io
n bet
we
en r
ep
or
tin
g pe
r
io
ds an
d bu
sin
e
ss u
ni
t
s. T
h
e me
as
ur
e
s ar
e al
s
o u
se
d in di
sc
us
s
ion
s w
it
h th
e inv
e
st
me
nt ana
ly
s
t
com
muni
t
y and b
y cr
ed
it r
ating a
gen
ci
es
.
We hav
e id
ent
if
ie
d an
d def
in
ed t
he fo
ll
ow
i
ng ke
y me
asu
r
es w
h
ich a
re u
s
ed w
i
thi
n the b
us
ine
s
s b
y man
ag
eme
nt to as
s
e
s
s the p
er
for
mance o
f
the Group
’
s businesses:
A
PM t
er
m
D
efinition and purpose
Capit
al employed
Ca
pi
t
al e
mp
lo
ye
d i
s a no
n-
s
ta
tu
tor
y m
ea
su
r
e of in
ve
s
te
d r
e
so
ur
ce
s
. I
t co
mp
r
is
e
s s
t
atu
to
r
y net a
s
se
t
s an
d is a
dj
us
te
d as
fol
lo
ws:
- to ad
d go
o
d
w
il
l r
ec
og
ni
se
d di
r
ec
t
ly i
n re
s
er
v
e
s in r
e
sp
e
c
t of su
bs
id
iar
ies a
cq
uir
e
d b
efo
r
e 1 Au
gu
s
t 199
8;
- to el
im
in
ate th
e Gr
o
up's in
ve
s
t
me
nt in I
CU M
ed
ic
a
l
, Inc e
qu
it
y and d
ef
er
r
e
d co
ns
id
er
atio
n co
nti
ng
ent o
n th
e f
ut
ur
e
sha
r
e pr
i
ce p
er
fo
r
ma
nc
e of I
CU M
ed
ic
al
, I
nc; a
nd
- to el
im
in
ate p
os
t-r
et
ir
em
en
t be
nef
i
t as
s
et
s a
nd l
i
ab
il
it
ie
s an
d n
on
-h
ea
dl
i
ne l
it
ig
at
io
n pr
o
v
is
io
ns r
e
l
ate
d to Jo
hn C
r
an
e,
Inc
. a
nd T
i
tef
le
x C
or
p
o
r
at
io
n, b
ot
h net o
f def
er
r
e
d t
ax
, a
nd n
et d
ebt
.
It i
s us
e
d to mo
ni
tor c
a
pi
t
al al
l
oc
at
io
n w
i
thi
n th
e Gr
o
up. S
e
e b
el
ow f
or a r
e
co
nc
il
ia
tio
n f
r
om n
et as
s
et
s to cap
i
ta
l
employed.
Capit
al expenditur
e
Co
mp
r
is
e
s a
ddi
t
io
ns to p
r
op
er
t
y, pl
a
nt an
d e
qui
pm
ent
, c
a
pi
ta
l
is
e
d de
ve
lo
pm
en
t and o
th
er i
nta
ng
ib
le a
s
se
t
s
, exc
lu
din
g
as
s
et
s a
cq
uir
e
d th
r
ou
gh b
usi
ne
s
s c
om
bin
at
io
ns
, s
ee n
ote 1 f
or a
n an
aly
s
is o
f c
api
t
al e
xp
e
ndi
t
ur
e. T
h
is m
ea
s
ur
e
qua
nti
f
ie
s t
he l
ev
el o
f c
ap
it
al i
nv
e
s
tm
ent i
nto on
go
in
g op
er
atio
n
s.
Div
isional headline
oper
ating profit ('DHOP')
DHOP comprises div
isional earnings before cen
tr
al costs, finance costs and taxation. DHOP is
used to monit
or divisional
pe
r
for
m
anc
e. A r
e
co
nc
il
ia
ti
on of D
HO
P to op
e
r
at
in
g pr
of
i
t is s
ho
w
n in n
ote 1.
Free cash-
flow
Fr
e
e c
a
sh
-f
lo
w i
s ca
lc
ul
a
ted b
y a
dju
s
ti
ng t
he n
et c
as
h inf
l
ow f
r
o
m op
er
atin
g ac
t
i
v
it
ie
s to i
nc
lu
de c
ap
it
a
l ex
pe
nd
it
ur
e
,
the r
e
p
ay
m
ent o
f le
as
e l
ia
bi
li
ti
e
s
, the p
r
o
ce
ed
s f
ro
m th
e di
sp
os
a
l of p
r
op
er
t
y, pl
a
nt an
d e
qui
pm
ent a
nd t
he i
nv
e
s
tm
ent
in f
in
an
cia
l as
s
et
s r
e
l
at
ing t
o op
er
atin
g ac
t
i
v
it
ie
s an
d p
en
si
on
s f
in
anc
in
g ou
t
s
t
an
din
g at t
he b
al
a
nc
e sh
ee
t dat
e.
T
he m
ea
su
r
e sh
ow
s c
a
sh g
en
er
ated b
y th
e Gr
o
up b
efo
r
e di
sc
r
eti
on
ar
y e
xp
en
di
tu
r
e on a
cq
uis
it
io
ns a
nd r
e
tur
ns to
sha
r
eh
ol
de
r
s
. A r
ec
on
ci
l
iat
io
n of f
r
ee c
a
sh
-f
lo
w i
s sh
ow
n i
n no
te 2
8
.
Gross debt
Gro
s
s de
bt i
s tot
al b
or
ro
w
in
gs (
b
an
k
, bo
nd
s an
d le
as
e l
ia
bi
li
ti
e
s). I
t i
s us
e
d to pr
o
v
id
e an i
nd
ic
at
io
n of th
e Gr
o
up's o
ve
r
a
ll
le
ve
l of in
d
ebte
dn
e
s
s
. S
ee n
ote 18 for a
n an
al
y
si
s of gr
o
s
s de
bt
.
Headl
ine
T
h
e Gr
o
up h
as d
ef
in
ed a '
he
a
dl
in
e' me
as
ur
e of p
er
fo
r
ma
nc
e tha
t exc
lu
de
s m
ater
ial no
n
-r
e
cu
r
r
in
g it
em
s or i
tem
s
con
s
id
er
ed n
o
n-
o
pe
r
at
io
na
l
/t
r
a
din
g in n
at
ur
e. I
te
ms e
xcl
ud
ed f
r
om h
e
ad
li
ne a
r
e re
fer
re
d to as n
on
-
he
ad
l
ine i
te
ms
. T
hi
s
me
as
ur
e i
s us
ed b
y t
he G
r
oup t
o me
as
ur
e an
d m
on
ito
r pe
r
for
m
an
ce e
xcl
udi
ng m
ate
r
ia
l no
n-
r
e
cur
ri
ng i
tem
s or i
te
ms
con
s
id
er
ed n
o
n-
o
pe
r
at
io
na
l
. S
e
e not
e 3 for a
n an
al
ys
is o
f no
n-
h
ea
dl
in
e it
em
s.
Headl
ine EBIT
DA
EBI
T
DA is a w
i
de
ly u
se
d pr
o
f
it m
ea
su
r
e, n
ot de
fi
ne
d b
y IF
R
S
, be
in
g ea
r
ni
ng
s be
fo
re i
nte
re
s
t
, t
ax
at
io
n, d
ep
r
ec
iat
io
n an
d
am
or
tis
a
ti
on
. Fo
ll
o
w
in
g th
e com
pl
et
io
n of th
e s
al
e of S
mi
th
s Me
di
c
al
, h
ea
dl
in
e EB
I
T
D
A for F
Y
2
02
2 h
as b
e
en pr
e
s
en
ted
on a co
nt
inu
in
g op
er
atio
ns b
a
si
s. A r
e
co
nc
il
ia
ti
on of h
e
ad
li
ne o
pe
r
at
in
g pr
o
fi
t to h
ea
dl
in
e E
BI
T
D
A is s
ho
w
n in t
he n
ote
be
lo
w.
Headl
ine EBIT
DA befor
e
restructu
ring
costs
He
ad
li
ne E
BI
T
D
A
, as def
i
ne
d ab
o
ve
, is a
dju
s
te
d to exc
lu
de r
e
s
tr
u
c
t
ur
in
g co
s
t
s f
r
om t
he G
ro
up’s st
r
ate
gi
c r
e
st
r
u
c
tu
r
in
g
pr
o
gr
a
mm
e w
hi
ch c
omm
en
ce
d in F
Y
2
0
2
0. Fo
ll
ow
ing th
e co
mp
let
io
n of t
he s
a
le of S
mi
th
s Me
di
c
al
, h
ea
dl
i
ne E
BI
T
D
A
bef
or
e r
e
s
tr
u
c
tu
r
in
g co
s
t
s fo
r F
Y
2
0
2
2 ha
s b
ee
n pr
e
s
ente
d o
n a co
nti
nui
ng o
pe
r
a
tio
n
s ba
si
s
. A r
ec
on
cil
i
ati
on o
f he
ad
l
ine
EB
I
T
DA to h
e
ad
li
ne E
BI
T
D
A b
efo
r
e r
es
t
r
uc
tur
in
g co
s
t
s an
d w
r
i
te
-
do
w
ns i
s sh
o
w
n in t
he n
ote b
el
ow.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
16
0
Headl
ine oper
ating prof
it
excluding res
tr
uc
tur
ing
He
ad
li
ne o
pe
r
a
tin
g pr
o
f
it i
s ad
jus
te
d fo
r s
tr
ateg
ic r
e
s
tr
u
c
tu
r
in
g pr
o
gr
amme c
os
t
s a
nd w
r
ite-
d
o
w
ns
. S
e
e no
te 2 fo
r a
re
c
onc
il
i
ati
on
. T
hi
s me
as
ur
e of p
r
of
i
ta
bi
li
t
y is us
e
d by t
he G
r
ou
p to me
as
ur
e a
nd m
on
ito
r p
er
for
m
an
ce
.
Net d
eb
t
Net d
ebt i
s tot
a
l bo
r
r
o
w
ing
s (
b
ank
, b
on
d
s an
d le
as
e l
ia
bil
i
ti
e
s) l
e
ss c
a
sh b
a
l
an
ce
s an
d de
r
i
v
at
i
v
es u
s
ed to m
an
a
ge th
e
inte
re
s
t r
ate r
is
k an
d cur
ren
c
y p
r
of
il
e of th
e de
bt
. T
hi
s me
a
su
re i
s us
e
d to p
ro
v
i
de a
n in
dic
a
ti
on of t
he G
r
ou
p's ov
er
all le
v
el
of in
de
bte
dn
e
ss a
nd i
s w
i
del
y us
e
d b
y inv
e
s
tor
s and c
re
d
it r
atin
g ag
en
ci
es
. S
e
e no
te 18 for an a
na
ly
s
is of n
et c
a
sh
/
(
de
bt
).
Non-he
adline
T
he G
r
ou
p ha
s def
i
ne
d a 'h
e
adl
i
ne' me
a
su
re o
f pe
r
for
m
an
ce th
at e
xcl
ud
e
s mate
r
i
al no
n
-r
e
cu
r
r
in
g i
tem
s or i
tem
s
con
s
id
er
ed n
o
n-
o
pe
r
at
io
na
l
/t
r
a
din
g in n
at
ur
e. I
te
ms e
xcl
ud
ed f
r
om h
e
ad
li
ne a
r
e re
fer
re
d to as n
on
-
he
ad
l
ine i
te
ms
. T
hi
s
is u
se
d b
y th
e Gr
o
up to m
ea
su
r
e an
d mo
ni
tor m
ate
r
ia
l no
n-
r
ec
ur
ri
ng i
tem
s or i
te
ms c
on
si
de
re
d n
on
-
op
er
atio
na
l
. S
e
e
note 3 f
or a
n an
aly
s
is o
f no
n-
h
ea
dl
in
e it
em
s.
Oper
ating cash-fl
ow
Co
mp
r
is
e
s f
r
ee c
a
sh
-f
lo
w a
nd e
xcl
ud
e
s c
as
h-f
l
o
w
s re
l
at
in
g to th
e r
ep
ay
m
en
t of le
a
se l
i
abi
l
it
ie
s
, inte
r
e
st a
nd t
a
xa
ti
on
.
T
he m
ea
su
r
e sh
ow
s h
o
w c
as
h is g
en
er
ated f
r
om o
pe
r
at
io
ns i
n th
e Gr
o
up
. A re
c
onc
il
i
ati
on of o
p
er
a
ti
ng c
a
sh
-f
lo
w i
s
sh
ow
n i
n no
te 2
8
.
Oper
ating profit
Op
er
atin
g pr
o
fi
t is e
a
r
nin
g
s bef
or
e f
in
an
ce c
os
t
s a
nd t
a
x
. A re
c
on
cil
i
ati
on o
f op
er
atin
g pr
of
i
t to pr
o
fi
t b
efo
r
e ta
x i
s sh
ow
n on
the i
nc
om
e s
ta
tem
ent o
n p
ag
e 10
3. T
h
is c
om
mo
n me
as
ur
e i
s us
e
d by t
he G
r
ou
p to me
as
ur
e a
nd m
on
ito
r p
er
for
m
an
ce
.
Retu
r
n on c
a
pi
t
al e
mpl
o
ye
d
('R
OCE
')
Sm
it
hs R
O
CE i
s c
alc
ul
a
ted o
v
er a r
o
ll
in
g 12-mo
nth p
e
r
io
d an
d is t
he p
er
c
ent
a
ge t
hat h
ea
dl
i
ne o
pe
r
at
in
g pr
of
i
t
re
pr
e
s
ent
s of the m
ont
hl
y av
er
age c
a
pi
t
al em
pl
o
ye
d on a r
o
ll
i
ng 12-m
ont
h ba
si
s
. T
hi
s me
as
ur
e of r
e
tur
n on inv
e
s
te
d
re
s
o
ur
ce
s is u
s
ed to m
o
ni
tor p
er
for
man
ce an
d c
ap
it
a
l al
lo
c
ati
on w
i
th
in t
he G
r
oup
. S
e
e be
lo
w fo
r Gr
o
up R
O
CE an
d n
ote 1
for divisional headline operating profit and divisional capital employed.
Th
e key p
er
for
mance i
ndi
c
ator
s ('K
P
I
s') us
e
d by m
an
age
me
nt to as
s
e
ss t
he p
er
for
m
anc
e of th
e Gr
ou
p’
s bu
sin
es
s
e
s ar
e as f
ol
lo
w
s:
K
PI t
er
m
Def
inition and purpose
Div
idend cover
– headline
D
i
v
id
en
d co
v
er i
s th
e r
at
io o
f he
ad
l
ine e
ar
ning
s p
er sh
ar
e (
s
e
e no
te 5
) to di
v
i
de
nd p
e
r sha
r
e (
s
ee n
ote 2
5
). T
h
is co
mm
on
ly
us
ed m
e
as
ur
e in
di
c
ate
s th
e nu
mb
er of t
im
e
s th
e di
v
id
en
d in a f
i
na
nci
al y
e
ar i
s co
ve
r
ed b
y h
ea
dl
in
e ea
r
ni
ng
s
.
E
ar
n
ing
s p
er sh
ar
e (
'
EP
S'
)
grow
th
EP
S gro
w
th is t
he g
r
ow
th in h
e
adl
i
ne b
a
sic E
P
S (s
ee n
ote 5
), o
n a r
ep
or
te
d ba
si
s
. EP
S gr
ow
th is u
s
ed t
o me
as
ur
e an
d
monitor perfor
mance.
Fr
ee c
a
sh
-f
lo
w (
a
s a % of
oper
ating profit
)
T
his m
e
as
ur
e is d
ef
in
e
d as f
r
ee c
a
sh
-f
l
ow d
i
v
id
e
d by h
ea
dl
i
ne o
pe
r
at
in
g pr
of
i
t a
ve
r
a
ge
d o
ve
r a th
re
e
-
ye
ar p
er
fo
r
ma
nc
e
pe
r
io
d
. T
his c
a
sh g
en
er
atio
n me
a
sur
e i
s us
e
d b
y the G
r
ou
p as a p
er
fo
r
ma
nc
e me
as
ur
e f
or r
em
un
er
atio
n pu
r
po
s
e
s.
Greenhouse Gas Emissions
(GHG) reduc
tion
GH
G re
du
c
ti
on i
s c
al
cu
l
ate
d as t
he p
er
c
ent
a
ge c
han
g
e in n
or
m
al
is
e
d S
co
pe 1 & 2 G
HG e
mi
s
si
on
s
. No
r
ma
li
s
ed i
s
ca
lc
ul
a
ted a
s t
C
O
2
e pe
r £m
il
li
on o
f r
ev
en
ue
. T
hi
s me
a
sur
e i
s us
e
d to mo
ni
to
r en
v
ir
on
me
nt
al p
er
for
manc
e.
Gross V
italit
y
Gro
s
s V
i
t
al
it
y is c
al
cu
l
ate
d as t
he p
e
rc
ent
a
ge o
f re
v
en
ue d
er
i
v
e
d fr
o
m ne
w p
r
od
uc
t
s a
nd s
er
v
i
ce
s l
au
nc
he
d in t
he
l
as
t f
i
v
e ye
ar
s. T
hi
s me
a
sur
e i
s us
e
d to mo
ni
to
r th
e ef
f
ec
t
i
ve
ne
s
s of t
he G
r
ou
p's ne
w pr
o
du
c
t de
v
el
op
me
nt an
d
commercialis
ation.
My Sa
y engagement score
The o
v
er
all s
co
r
e in o
ur M
y S
a
y em
pl
oy
e
e en
ga
ge
me
nt su
r
ve
y. Th
e b
i-
ann
ua
l sur
v
e
y is un
d
er
ta
ken G
ro
up
-
w
i
de
. T
his
me
as
ur
e i
s us
ed b
y t
he G
r
oup t
o mo
ni
tor e
mp
lo
y
ee e
ng
ag
em
ent
.
Oper
ating cash conver
sion
Co
mp
r
is
e
s h
ea
dl
in
e op
er
atin
g c
as
h
-f
lo
w, exc
lu
di
ng r
e
s
tr
u
c
tu
r
in
g co
s
t
s
, as a p
er
c
ent
a
ge of h
e
adl
i
ne o
pe
r
at
in
g pr
o
fi
t
.
T
his m
e
as
ur
e is u
s
ed t
o sh
ow t
he p
r
op
or
ti
on of h
e
ad
li
ne o
pe
r
a
tin
g pr
o
fi
t c
on
ve
r
ted int
o ca
sh
-f
l
ow f
r
o
m op
er
atio
ns
bef
or
e in
v
e
st
me
nt
, f
ina
nc
e co
s
t
s
, no
n-
he
a
dl
in
e ite
ms a
nd t
a
x
ati
on
. T
he c
a
lc
ul
at
io
n is s
ho
w
n i
n note 2
8.
Oper
ating pr
ofit mar
gin
Ope
r
a
tin
g pr
o
fi
t m
ar
gi
n is c
a
lc
ul
ate
d b
y di
v
i
din
g h
ea
dl
in
e op
er
atin
g pr
o
fi
t b
y r
ev
e
nue
. T
hi
s me
a
sur
e i
s us
e
d to m
oni
to
r
the G
r
ou
p’s abil
it
y to dr
i
v
e pr
o
fi
t
ab
le g
ro
w
th an
d co
ntr
o
l co
s
t
s
.
Organic gro
w
th
Or
gan
ic g
r
ow
th a
dju
s
t
s th
e mo
v
em
ent i
n he
ad
l
ine p
e
r
f
or
manc
e to exc
lu
de t
he i
mp
ac
t o
f fo
re
ig
n exc
ha
ng
e, r
e
s
tr
u
c
tu
r
in
g
co
st
s a
nd a
cq
ui
si
ti
on
s
. Or
g
ani
c gr
o
w
th is u
se
d b
y th
e Gr
o
up to a
id c
omp
a
r
ab
il
i
t
y w
h
en m
on
it
or
i
ng p
er
for
manc
e.
Organic rev
enue grow
th
(remuner
ation
)
Organic rev
enue grow
th (r
emuner
ation) is compounded annualised gro
w
th in revenue calcul
ated on an
under
lying
ba
si
s
. T
he m
ea
su
r
e us
e
d for r
e
mu
ne
r
at
io
n di
f
fe
r
s f
r
om o
r
ga
ni
c re
v
en
ue g
ro
w
th in t
hat i
t i
s c
alc
ul
a
ted o
n a co
mp
ou
nd
e
d
ann
ua
li
s
ed b
a
si
s. T
h
is m
e
as
ur
e ha
s hi
s
tor
ica
ll
y be
e
n us
e
d by t
he G
r
ou
p for a
l
ign
in
g r
emu
ne
r
a
tio
n w
i
th b
usi
ne
s
s
per
for
mance.
Perc
entag
e of
sen
ior
leader
ship positions taken
by f
em
ale
s
Per
c
ent
a
ge of s
e
ni
or le
a
de
r
sh
ip p
os
it
io
ns t
a
ken b
y fe
mal
e
s is c
a
lc
ul
ate
d a
s th
e pe
r
cen
ta
ge o
f se
ni
or l
ea
d
er
s
hip r
o
le
s
(G14+ g
r
oup
) he
l
d by f
em
ale
s
. T
hi
s m
ea
su
re i
s us
e
d b
y th
e Gr
o
up to m
on
ito
r di
v
er
sit
y per
for
manc
e.
R&D c
as
h co
s
t
s as a
% of s
al
e
s
T
his m
e
as
ur
e is d
ef
in
e
d as t
he c
a
sh c
os
t of r
e
s
ea
r
ch an
d d
ev
el
op
me
nt a
c
ti
v
i
ti
es a
s a p
er
ce
nt
ag
e of r
e
ve
nu
e. I
nn
ov
a
tio
n
is an i
mp
or
t
ant dr
iv
er o
f su
st
a
ina
bl
e gr
o
w
th for t
he G
r
ou
p an
d thi
s m
ea
su
re
s o
ur i
nv
e
st
me
nt in r
e
s
e
ar
ch a
nd
development to drive innov
ation.
Rat
io o
f c
api
t
al e
xp
en
di
t
ur
e
to depreciation and
amor
tisation
Rep
re
s
e
nt
s th
e am
ou
nt of c
ap
i
ta
l ex
p
en
di
tur
e a
s a pr
o
po
r
tio
n of th
e de
pr
e
ci
at
io
n an
d am
or
tis
a
ti
on c
har
g
e fo
r th
e pe
r
i
od
.
T
his m
e
as
ur
e sh
o
w
s th
e le
v
el of r
e
inv
e
s
tm
ent i
nto o
pe
r
at
io
ns
.
Recordable Inciden
t Rate
(RIR
)
Rec
or
d
ab
le In
ci
de
nt R
ate is c
a
lc
ul
at
ed a
s th
e nu
mb
er of r
e
co
r
da
bl
e in
ci
de
nt
s – w
he
r
e an in
ci
de
nt r
e
qui
r
es m
e
dic
a
l
at
te
nti
on b
e
yo
nd f
ir
st ai
d – p
er 10
0 co
ll
e
ag
ue
s
, pe
r y
ea
r ac
ro
s
s S
mi
th
s. T
h
is m
ea
s
ur
e is u
s
ed b
y th
e Gr
o
up to m
on
it
or
health and safet
y per
for
mance.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
161
Capital employed
Ca
pi
ta
l emp
lo
ye
d is a n
on
-s
t
atu
tor
y me
as
ur
e of in
ve
s
te
d re
s
ou
rc
es
. I
t com
pr
i
se
s s
t
atu
tor
y ne
t as
s
et
s ad
jus
te
d to ad
d go
od
w
il
l r
ec
og
nis
e
d
dir
ec
t
ly in r
e
s
er
ve
s in r
e
sp
e
c
t of sub
si
diar
ies a
cqu
ir
ed b
efo
re 1 A
ug
us
t 199
8 of £
478
m (
F
Y
2
0
21
: £7
8
7m), to el
im
inate t
he G
ro
up's inv
e
st
me
nt
in IC
U Me
dic
al
, I
nc e
qui
t
y a
nd d
efer
r
e
d co
nsi
de
r
at
ion c
onti
ng
ent on t
he f
u
tur
e sh
ar
e pr
ice pe
r
for
ma
nce of I
CU M
ed
ic
al
, In
c and to e
l
imin
ate
po
st-r
et
ir
eme
nt be
nef
i
t as
s
et
s an
d li
abi
li
ti
es a
nd n
on
-h
ea
dl
ine l
i
tig
ati
on pr
o
v
is
ion
s r
el
ate
d to Jo
hn Cr
ane, In
c. a
nd T
i
tef
lex C
o
r
po
r
at
ion
, b
oth
net of r
el
ated ta
x
, an
d net d
ebt
.
Notes
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Net assets
2
,7
2
1
2,4
23
Adjus
t for
:
Goodwill recognised
directly
in reser
ves
47
8
787
Retirement benefit assets and obligations
8
(19
4
)
(
413
)
T
ax r
el
ated to r
et
ir
em
en
t be
nef
i
t as
s
et
s a
nd o
bl
i
gat
io
n
s
57
10
8
John Crane, Inc. litigation
prov
isions and related tax
23
17
2
15
8
Titeflex Corpor
ation litigation provisions and related tax
23
40
36
Inv
e
s
tm
ent i
n IC
U Me
di
c
al
, In
c e
qui
t
y
14
(364)
–
Deferr
ed contingent consideration
14
(19
)
–
Net d
eb
t (F
Y
2
0
2
1
: inc
lu
de
s £
4
m of n
et c
a
sh in d
is
co
nt
inu
e
d op
er
atio
ns
)
18
15
0
1,
01
8
Capital employed
3
,
0
41
4
,11
7
Return on
capit
al employed ('ROCE')
Notes
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
repres
ented*
£m
Headline operating profit for previous 1
2 months
– continui
ng operations
417
372
Restr
uct
uring cost
s
–
21
Headline oper
ating profi
t before restr
uc
tur
ing costs – continuing operations
417
393
Av
er
age c
ap
i
ta
l em
pl
oy
e
d – co
nti
nui
ng o
pe
r
a
tio
n
s (exc
lu
di
ng i
nv
e
st
me
nt in I
C
U Me
dic
a
l
, In
c eq
ui
t
y
)
1
2
,94
0
2,8
30
ROCE
14
.
2
%
13
.9
%
*
F
ol
l
o
w
in
g th
e c
om
p
le
ti
on o
f t
he s
a
le o
f S
mi
th
s M
e
di
c
al
, R
O
C
E fo
r 31 J
ul
y 2
0
21 h
a
s be
e
n r
ep
r
e
s
en
te
d to e
xc
lu
d
e re
s
t
r
u
c
tu
r
i
ng c
os
t
s a
n
d di
s
co
nt
in
u
ed o
p
er
ati
on
s f
r
o
m he
a
dl
i
ne o
p
er
ati
ng
pr
o
fi
t a
nd a
v
e
r
a
ge c
a
pi
t
al e
m
pl
o
y
ed
. T
h
e 31 J
ul
y 2
0
21 f
i
gu
r
e
s ha
v
e b
ee
n r
ep
r
e
s
en
te
d to a
id t
h
e pe
r
i
od o
n p
er
iod c
o
mp
a
r
ab
i
li
t
y for t
hi
s f
or
w
ar
d
-
lo
o
ki
n
g me
a
su
r
e
.
Credi
t metr
i
c
s
Smi
th
s Gr
ou
p mo
nito
r
s th
e r
at
io of n
et de
bt to he
ad
li
ne E
BI
T
D
A as p
ar
t of it
s m
ana
ge
men
t of cr
ed
it r
ating
s; se
e no
te 26 fo
r det
ail
s. T
hi
s r
at
io
is pr
e
s
ente
d for t
he w
h
ole G
r
oup, i
ncl
udi
ng di
sc
ont
inu
ed o
pe
r
ati
on
s
, and i
s c
alc
ul
ate
d as f
ol
lo
w
s:
Headline earnings before interest, tax
, depreciation and
amor
tisation (headline EBITDA
)
Notes
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
Continuing
operations
£m
Y
ear ended
31 Ju
l
y 2
0
21
To
t
a
l
operations*
£m
Headline operating profit
417
372
Headline operating profit of disconti
nued operations
27
–
17
7
E
xcl
ud
e:
– dep
r
e
cia
ti
on of p
r
op
er
t
y, pl
ant an
d eq
uip
me
nt
12
38
40
– dep
r
e
cia
ti
on of r
ight of u
s
e as
s
et
s
13
30
32
– amor
tisation and impairm
ent of
developm
ent costs
10
3
7
– am
or
tis
a
ti
on of s
of
t
w
a
re
, p
aten
t
s an
d inte
ll
ec
t
ua
l pr
o
pe
r
t
y
10
7
7
Headline EBITDA
49
5
635
Ad
d b
ac
k: r
e
s
tr
uct
ur
ing co
s
t
s an
d w
r
i
te
-d
o
w
ns (
F
Y
2
0
21 c
om
p
ar
a
ti
v
e in
cl
ud
e
s £9
m in di
s
co
nti
nu
ed o
pe
r
a
tio
n
s)
2
–
30
He
ad
l
in
e EBI
T
D
A be
fo
r
e re
s
tr
u
c
t
ur
i
ng c
os
t
s a
nd w
r
i
te
-
d
ow
n
s
495
665
Ratio of
net debt to
headline EBITDA –
total Group including d
iscontinued operations
Notes
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
Continuing
operations
£m
Y
ear ended
31 Ju
l
y 2
0
21
To
t
a
l
operations*
£m
Headl
ine EBIT
DA
495
635
Net d
eb
t (F
Y
2
0
2
1 co
mp
ar
ati
ve i
nc
lu
de
s £
4
m of n
et c
as
h in d
is
co
nti
nu
ed o
p
er
a
ti
on
s)
18
15
0
1,
01
8
Ratio of
net debt to
headline EBITDA
0.3
1.
6
*
T
h
e f
ig
ur
e
s f
or t
h
e co
mp
a
r
a
ti
v
e p
er
i
o
d in t
h
e cr
e
di
t m
et
r
i
c
s t
ab
le
s a
b
ov
e i
nc
l
ud
e di
s
co
nt
i
nu
e
d op
e
r
at
i
on
s
.
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
16
2
30 Post Bal
anc
e Sheet E
vents
Det
ail
s of the p
r
opo
s
ed f
in
al di
v
i
den
d an
no
unce
d si
nce t
he en
d of th
e r
ep
or
tin
g per
iod ar
e gi
v
en i
n note 2
5.
31 Audit exemption taken for subsi
diar
ies
Th
e fo
ll
ow
i
ng su
bsi
dia
r
ie
s ar
e e
xempt f
r
om t
he r
e
quir
e
ment
s o
f the C
om
p
anie
s A
c
t 2
0
0
6 r
e
l
atin
g to th
e aud
it of i
ndi
v
i
dua
l acc
ount
s by v
ir
tue
of S
ec
t
ion 47
9A of that A
c
t for F
Y
2
0
2
2
.
Company name
Company
number
C
ompany name
Company
number
EI
S Gr
o
up P
lc
61
4
0
7
Smiths Detectio
n Investment
s Limited
514
6
6
4
4
Fl
ex
ibox In
ter
nat
ion
al L
imi
ted
3
94
6
8
8
Smi
ths Finance Limi
ted
78880
63
F
lex-T
ek Gr
oup L
imite
d
1
1
54540
5
Smi
th
s Gr
o
up F
i
na
nc
e EU L
i
mi
ted
1
04405
73
Gr
a
s
eb
y L
im
it
ed
8
94
6
3
8
Sm
it
h
s Gr
ou
p F
in
an
ce U
S L
im
ite
d
1
0440608
SI Proper
ties Limited
16
0
8
8
1
Sm
it
h
s Gr
ou
p In
no
v
at
io
n L
imi
te
d
1
0953689
SITI
1
Lim
it
ed
4257042
Smi
ths Interconnect Group Limited
6
6
414
0
3
Sm
it
hs D
ete
c
ti
on G
r
ou
p L
imi
te
d
513
8
14
0
Smiths Pe
nsions Limit
ed
2
1
97
444
NOTES TO TH
E ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
16
3
Una
udit
ed Grou
p financ
ial rec
ord 2
0
1
8-
2
02
2
Th
e he
ad
li
ne in
co
me s
ta
teme
nt met
r
ic
s s
ho
w
n be
lo
w fo
r the y
ea
r en
de
d 31 July 2
018 ha
s be
en r
ep
r
es
ente
d to sh
ow t
he r
e
su
lt
s of S
mit
hs
Medical as a discon
tinued operation.
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
£m
Y
ear ended
31 Ju
l
y 2
0
21
£m
Y
ear ended
31 Ju
l
y 2
0
2
0
£m
Y
ear ended
31 Ju
l
y 2
019
£m
Y
ear ended
31 Ju
l
y 2
018
£m
Income statement
metric
s –
headline*
Continuing operations
Rev
enue
2
,56
6
2,40
6
2,5
4
8
2,
49
8
2,
328
Headl
ine oper
ating prof
it
417
372
327
42
7
388
He
ad
li
ne p
r
of
it b
ef
or
e t
a
x
3
76
332
278
3
76
333
Discontinued operations
Revenue
356
8
49
918
8
74
8
69
Headl
ine oper
ating prof
it
66
17
7
18
4
147
15
6
He
ad
li
ne p
r
of
it b
ef
or
e t
a
x
65
176
18
0
14
4
15
4
Income statement
metric
s –
statutor
y
**
Revenue
2,56
6
2,40
6
2,5
4
8
2,
49
8
2,
328
Oper
ating profit
11
7
3
26
2
41
326
3
42
Profit before taxation
10
3
24
0
13
3
304
2
87
Pr
o
fi
t fo
r th
e ye
a
r
1,
0
3
5
285
2
67
227
279
Balance sheet metrics**
*
Net d
eb
t
(
15
0
)
(1,
0
1
8
)
(
1
,1
4
1
)
(
1
,1
9
7
)
(893)
Shareholders’ equity
2,
69
9
2,4
02
2,373
2,360
2,2
72
Aver
age capit
al employed
2
,9
4
0
4
,1
6
5
4
,
315
3
,9
7
2
3,7
3
5
Ratios***
He
ad
li
ne o
pe
r
a
tin
g pr
o
f
it: r
e
v
en
ue (
%
)
1
6.5
16
.9
14
.7
17.
0
1
7.
0
He
ad
li
ne e
f
fe
c
t
i
ve t
a
x r
at
e (%
)
2
7.
2
2
7.1
26.2
2
5
.9
25.8
Retu
r
n on c
a
pi
t
al e
mpl
o
ye
d (
%
)
14
.
2
13
.
2
11.
8
14
.
4
14
.
6
Return on
shareholders’ funds (%)
10
.
0
11
.
6
10
.
8
12
.
3
1
2
.1
Cash-flow metric
s**
*
Headl
ine oper
ating cash
318
630
575
4
74
538
Headline oper
ating cash conver
sion (%)
76
12
5
12
3
83
99
Free cash-
flow
13
0
38
3
27
3
234
302
Fr
ee c
a
sh
-f
lo
w p
er s
ha
r
e (
p)
3
5
.9
96.
6
6
8
.9
5
9.1
76.
3
Ea
r
n
in
gs p
e
r sh
ar
e*
**
He
ad
li
ne e
ar
ning
s pe
r sh
ar
e (
p
)
82.5
9
3
.1
8
4.8
96
.
8
9
0
.7
Divi
dends and dividend cover**
*
Pence per share
3
9.
6
0
3
7.7
0
35.0
0
4
5
.9
0
4
4
.55
Headl
ine div
idend cove
r
2
.1
2
.5
2.4
2
.1
2.0
*
T
he h
e
ad
l
in
e i
nc
om
e s
t
at
em
en
t me
t
r
ic
s i
n t
he a
b
ov
e f
i
v
e
-y
e
ar r
e
c
or
d h
a
ve b
e
e
n pr
e
s
en
te
d to r
e
f
le
c
t t
he r
e
c
l
as
s
i
fi
c
at
i
on o
f th
e S
mi
t
hs M
e
di
c
al b
u
si
ne
s
s a
s a d
is
c
on
ti
nu
e
d op
e
r
a
ti
on a
n
d
th
e Gr
o
u
p's c
ur
r
e
nt a
cc
o
un
ti
ng p
o
l
ic
y of in
cl
ud
i
ng r
e
s
t
r
uc
t
u
r
in
g a
nd p
e
ns
io
n a
dm
in
i
s
tr
a
t
io
n co
s
t
s w
i
th
in h
e
a
dl
in
e p
r
of
i
t
. T
he d
i
sc
o
nt
in
ue
d o
pe
r
a
ti
o
ns c
o
mp
a
r
at
i
v
e
s fo
r th
e y
e
ar e
nd
e
d
31 Ju
l
y 2
018 h
av
e a
l
s
o b
ee
n r
e
s
ta
te
d f
or t
he a
d
op
ti
o
n of I
F
R
S 15.
*
*
T
h
e s
t
at
u
to
r
y inc
om
e s
t
at
em
e
nt m
et
r
ic
s a
r
e p
r
es
e
nt
ed b
a
s
ed o
n c
on
ti
nu
i
ng o
p
er
ati
on
s f
or b
ot
h t
he c
ur
ren
t an
d c
om
p
ar
ati
v
e y
ea
r
s
.
*
*
*
B
a
l
an
c
e sh
e
et m
et
r
i
c
s
, r
at
i
os
, c
a
sh
-
f
lo
w m
et
r
ic
s, e
ar
n
in
g
s p
er s
ha
r
e, d
i
v
i
de
n
d co
v
er a
n
d nu
mb
e
r of e
mp
l
oy
e
e
s ar
e p
r
e
s
en
te
d b
as
e
d on b
o
th c
on
ti
n
ui
ng a
n
d di
s
co
nt
in
u
ed o
p
er
ati
on
s f
or
all years.
UNAUDITED GROUP FINA
NCIA
L RECORD 201
8-2022
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
16
4
Unaudited
supp
lement
ar
y con
s
oli
dated inco
me s
t
atement –
US
doll
ar tr
ansl
ation
Year e
n
de
d 31 J
u
ly 2
0
22
Year e
nd
e
d 31 J
ul
y 2
0
21
Headline
$m
Non-headline
(n
ot
e 3)
$m
To
t
a
l
$m
Headline
$m
Non-headline
(n
o
te 3
)
$m
To
t
a
l
$m
CONTINUING OPER
ATIONS
Revenue
3,377
–
3,377
3,26
4
–
3,26
4
Oper
ating costs
(2,828)
(395)
(3,22
3)
(2,7
60)
(
62)
(
2,822
)
Operating profit/(loss)
5
49
(395)
15
4
504
(6
2
)
4
42
In
te
rest rec
eivabl
e
18
–
18
12
–
12
In
te
rest pa
yable
(72)
–
(
72)
(6
6)
–
(6
6)
Other f
inancing gains
/(
loss
es
)
–
26
26
–
(
71)
(
71)
Other finance charg
es – retirement benefits
–
9
9
–
8
8
Finance cos
ts
(54)
35
(19
)
(5
4)
(6
3)
(
11
7
)
Profit
/(loss) before taxation
49
5
(360)
13
5
450
(12
5
)
325
T
axation
(
13
7
)
18
(
11
9
)
(13
0
)
18
(
112
)
Profit
/(loss) for t
he year
35
8
(3
42
)
16
32
0
(10
7
)
213
DISCONTI
NUED
OPE
R
A
TIONS
Profit on discontinued operations
64
1,
2
8
0
1,
3
4
4
18
2
(8)
174
PR
OF
I
T/(LO
S
S
) FO
R TH
E Y
E
AR
422
938
1
,360
502
(
11
5
)
387
Profit
/(loss) for t
he year attributable to:
Smiths Group sharehol
ders – continuing operations
355
(342)
13
3
19
(10
7
)
2
12
Smiths Group sharehol
ders – discontinued oper
ations
64
1,
2
8
0
1,
3
4
4
18
2
(8)
174
Non-contr
olling interest
s
3
–
3
1
–
1
502
(
11
5
)
387
EARNI
NG
S P
ER
SHAR
E
Basic
3
5
1.
5
c
97
.2c
Basic – continuing
3
.7c
5
3.4
c
Dilu
ted
35
0.0
c
96
.
7c
Diluted – continuing
3
.
7c
5
3
.1
c
A
s
s
et
s an
d l
iab
ili
ti
es h
av
e b
ee
n tr
a
ns
l
ated i
nto US d
ol
l
ar
s at t
he e
xcha
nge r
ate at the d
ate of th
at b
al
an
ce sh
ee
t and i
nco
me, e
xp
en
s
es a
nd
ca
sh
-f
lo
w
s ar
e tr
ansl
a
ted at a
ve
r
a
ge e
xcha
nge r
ates fo
r th
e pe
r
io
d. T
hi
s r
ef
lec
t
s the acc
ount
ing a
pp
r
oa
ch th
at Sm
it
hs G
ro
up pl
c wo
ul
d us
e
if th
e Gr
o
up mo
ve
d to r
ep
or
tin
g in U
S dol
l
ar
s wi
tho
ut m
ak
ing a
ny c
han
ge
s to i
t
s Gr
ou
p st
r
uc
t
ur
e or f
in
anc
in
g ar
r
ange
ment
s
.
UNAUDITED
US DOLLAR PRIMARY ST
A
TEM
ENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
16
5
Unaudited
supp
lement
ar
y con
s
oli
dated s
t
atement of
compr
ehen
si
ve
income
–
US d
oll
ar tr
a
nsl
ation
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
$m
Y
ear ended
31 Ju
l
y 2
0
21
repres
ented*
$m
PR
OF
I
T FO
R T
HE Y
E
A
R
1
,360
387
O
ther comprehensive income
(OCI):
OCI which will
not be reclassified to the
income statement
:
Re-measur
ement of
post-retirement benefit
s ass
ets and obligations
(22
)
18
T
axation on post-retirement benefits mov
ements
–
(8)
Fa
ir v
al
ue m
o
ve
me
nt
s on f
i
na
nc
ial a
s
s
et
s at f
a
ir v
al
ue t
hr
o
ug
h OC
I
(8
3)
5
(10
5
)
15
O
CI which will be
recl
assified and reclas
sifications:
Fair value gai
ns
/(los
ses) and recl
assific
ation adjustments:
– d
efe
r
r
ed i
n th
e ye
ar o
n c
as
h-
f
lo
w an
d ne
t inv
e
s
tm
ent h
e
dg
e
s
(10
8)
111
– re
c
l
as
s
if
i
ed to i
nc
om
e st
at
em
ent o
n c
as
h-
fl
o
w an
d net i
nv
e
s
tm
ent h
ed
g
es
7
3
(10
1)
11
4
Foreign ex
change (FX
)
movements net of recycling:
E
xchange
loss
es
/(gains) on translation of foreign
oper
ations
363
(32
)
E
xch
an
g
e gai
ns r
e
c
y
cl
e
d to th
e in
com
e s
t
atem
en
t on di
sp
o
s
al on b
u
sin
e
s
s
(258)
–
10
5
(32)
T
otal
other comprehensive income
, net of
taxation
(101)
97
T
otal
comprehensive income
1
,259
484
Attr
ibutab
le to:
Smiths Group s
hareholder
s
1
.258
484
Non-contr
olling interest
s
1
–
1
,259
484
*
T
h
e c
om
p
ar
ati
v
e y
ea
r h
as b
e
en r
e
pr
e
s
e
nte
d t
o in
cl
u
de ‘
Fa
ir v
a
lu
e m
o
ve
m
en
t
s on f
i
na
n
ci
al a
s
s
et
s a
t f
ai
r v
a
lu
e th
r
ou
g
h O
CI
’ w
it
h
in t
he ‘
O
CI w
h
ic
h w
il
l n
ot b
e r
e
cl
a
s
s
if
i
e
d to t
he i
nc
o
me
st
a
te
me
nt
’ s
ub
to
ta
l r
a
th
e
r th
an w
i
t
hi
n th
e ‘O
C
I w
hi
c
h w
il
l b
e re
c
l
a
s
si
f
ie
d a
nd r
e
c
l
as
s
i
f
ic
a
ti
on
s’ s
ub
to
t
al
. T
h
is r
e
c
l
a
s
si
f
ic
a
ti
o
n ha
s n
o im
p
ac
t o
n to
t
al o
th
er c
o
mp
r
eh
e
ns
i
v
e in
c
om
e in t
h
e
co
mp
a
r
a
ti
v
e y
ea
r e
nd
e
d 31 J
ul
y 2
0
21.
UNAUDITED
US DOLLAR PRIMARY ST
A
TEM
ENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
16
6
Una
udit
ed su
pplem
entar
y c
onsolida
ted ba
l
anc
e sheet – U
S dollar tr
anslati
on
31 Ju
ly 2
0
2
2
$m
31 Ju
l
y 2
0
21
$m
NON-CURR
ENT A
SSE
T
S
Intangible as
set
s
1,9
3
3
2
,08
2
Pr
o
pe
r
t
y, pl
an
t an
d eq
uip
me
nt
2
96
295
Ri
ght of u
s
e as
s
et
s
12
9
15
0
Financial ass
ets – other investments
4
81
15
Retirement benefit assets
376
759
Def
er
r
e
d t
ax a
s
s
et
s
116
12
8
T
r
ad
e an
d ot
he
r re
ce
i
v
ab
le
s
84
82
Financial der
iv
ative
s
–
10
4
3
,
41
5
3
,
615
CURRENT ASSE
TS
Inventories
694
5
30
Cur
rent t
a
x r
ec
ei
v
a
bl
e
61
105
T
r
ad
e an
d ot
he
r re
ce
i
v
ab
le
s
897
8
76
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
1,
2
8
6
563
Financial der
iv
ative
s
5
3
A
s
s
et
s h
el
d fo
r s
al
e
–
1,
7
2
8
2
,94
3
3,805
TOT
AL AS
SETS
6,358
7,
4
2
0
CURRE
NT LIABI
LITIES
Financial liabili
ties
– bo
r
r
o
w
ing
s
(620)
(
13
)
– lease liabilitie
s
(35)
(38)
– financial deri
vati
ves
(33)
(4)
Prov
isions for liabilities and
charge
s
(10
7
)
(6
4
)
T
r
ad
e an
d ot
he
r pa
y
ab
le
s
(82
9)
(
737
)
Cur
rent t
a
x p
ay
a
bl
e
(78)
(12
4
)
Liabili
ties held for sale
–
(393)
(1,7
0
2
)
(1,
3
7
3
)
NON-CU
RRENT
LIABILITIES
Financial liabili
ties
– bo
r
r
o
w
ing
s
(655)
(
1,9
0
7
)
– lease liabilitie
s
(
11
0
)
(
131)
– financial deri
vati
ves
(24)
–
Prov
isions for liabilities and
charge
s
(
3
01)
(335
)
Retirement benefit obligations
(14
0
)
(17
8
)
Cur
rent t
a
x p
ay
a
bl
e
(4)
(7
)
Deferr
ed tax liabilitie
s
(54)
(39)
T
r
ad
e an
d ot
he
r pa
y
ab
le
s
(5
6)
(82
)
(1,
3
4
4
)
(
2
,
67
9)
TOT
AL
LIA
BILITI
ES
(3,0
4
6)
(4,0
52)
N
ET
ASSETS
3
,
3
12
3,3
68
SHA
REHOLDER
S’ EQUIT
Y
Share cap
ital
16
6
207
Shar
e premium account
444
505
Capital re
demption reser
ve
23
8
Revaluation re
ser
ve
–
1
Merger re
ser
ve
286
327
Retained ear
nings
2
,
61
2
2,6
08
He
dg
e r
es
e
r
ve
(
24
6)
(
3
17
)
T
otal shareholder
s’ equity
3,
28
5
3,33
9
Non-
control
ling interes
t equit
y
27
29
TOT
AL EQU
IT
Y
3
,
312
3,368
UNAUDITED
US DOLLAR PRIMARY ST
A
TEM
ENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
167
Una
udit
ed su
pplem
entar
y c
onsolida
ted stat
eme
nt o
f chang
es in equ
it
y – US doll
ar translatio
n
Share capital
and share
premium
$m
Other
reserves
$m
Retained
earnings
$m
Hedge
reser
ve
$m
Equity
shareholders’
funds
$m
Non-
controlling
interest
$m
To
t
a
l
equity
$m
At 31 J
uly 2
021
7
12
336
2,608
(
3
17
)
3,339
29
3,368
P
r
of
it f
or t
he y
e
ar
–
–
1
,357
–
1
,357
3
1
,360
O
ther comprehensi
ve income:
– re-m
easurement of retirement benefits af
ter tax
–
–
(22)
–
(22
)
–
(
22)
– F
X mo
ve
me
nt
s n
et of r
e
c
y
cl
in
g
(8
8)
(4
4)
(377
)
17
2
(3
37
)
(5
)
(3
42)
– f
ai
r v
al
ue g
ain
s
/
(
lo
ss
e
s
) an
d r
el
at
ed t
a
x
–
–
(8
3)
(10
1)
(18
4
)
–
(
18
4
)
T
otal
comprehensive income for
the year
(88)
(4
4)
875
71
814
(2)
8
12
T
ransac
tions rela
ting to
owner
ship interest
s:
Is
s
ue of n
e
w eq
ui
t
y s
ha
r
es
3
–
–
–
3
–
3
Pu
r
ch
as
e of s
ha
re
s b
y E
mp
lo
ye
e B
en
ef
it Tru
st
–
–
(
21)
–
(
2
1)
–
(
2
1)
Procee
ds from exercise of
share options
–
–
1
–
1
–
1
Share buyb
acks
(
17
)
17
(67
2
)
–
(
672
)
–
(67
2
)
Div
idends:
– equit
y shareholder
s
–
–
(
19
7
)
–
(
19
7
)
–
(
19
7
)
Share-based payment
–
–
18
–
18
–
18
At 31 J
uly 2
0
2
2
61
0
309
2
,
61
2
(246
)
3,285
27
3
,
312
Share capital
and share
premium
$m
Other
reserves
$m
Retained
earnings
$m
Hedge
reser
ve
$m
Equit
y
shareholders’
funds
$m
Non-
contr
oll
ing
int
erest
$m
To
t
a
l
equit
y
$m
At 31 J
uly 2
02
0
6
67
319
2
,53
4
(
41
3
)
3
,1
0
7
29
3
,1
3
6
P
r
of
it f
or t
he y
e
ar
–
–
386
–
386
1
3
87
O
ther comprehensi
ve income:
– re-m
easurement of retirement benefits af
ter tax
–
–
10
–
10
–
10
– F
X mo
ve
me
nt
s n
et of r
e
c
y
cl
in
g
42
17
(72)
(18
)
(
3
1)
(1)
(32
)
– f
ai
r v
al
ue g
ain
s
/
(
lo
ss
e
s
) an
d r
el
at
ed t
a
x
–
–
5
114
11
9
–
11
9
T
otal
comprehensive income for
the year
42
17
329
96
484
–
484
T
ransac
tions relating to owners
hip interests:
E
xercises of share
options
3
–
–
–
3
–
3
Rec
eip
t of c
ap
i
ta
l fr
o
m no
n
-c
on
tr
ol
l
in
g inte
r
e
st
–
–
–
–
–
1
1
Pu
r
ch
as
e of o
w
n sh
ar
e
s
–
–
(22)
–
(22
)
–
(
22)
Div
idends:
– equit
y shareholder
s
–
–
(252
)
–
(
252
)
–
(252
)
– non-controll
ing interest
s
–
–
–
–
–
(1)
(1)
Share-based payment
–
–
19
–
19
–
19
At 31 J
uly 2
0
21
712
336
2
,608
(
317
)
3,3
39
29
3,
368
UNAUDITED
US DOLLAR PRIMARY ST
A
TEM
ENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
16
8
Unaudited
supp
lement
ar
y con
s
oli
dated c
a
sh-f
lo
w s
t
atement –
US
dol
l
ar
tr
an
sl
atio
n
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
$m
Y
ear ended
31 Ju
l
y 2
0
21
$m
Net cash inflow
from operating activities
3
67
726
Cash-fl
ows fr
om i
nvest
ing
activiti
es
E
xpenditure on capitalised development
(
2
9)
(
37
)
E
x
pe
nd
it
ur
e o
n oth
er i
nt
an
gib
le a
s
s
et
s
(
11)
(
16
)
Pu
r
ch
as
e
s of p
ro
p
er
t
y, pl
a
nt an
d eq
ui
pm
ent
(
76
)
(
10
6
)
Disposal
s of
proper
ty, plant
and equipme
nt
4
3
Ca
pi
t
al r
et
ur
n
ed b
y
/(
in
v
es
t
me
nt in
) f
in
an
ci
al a
s
se
t
s
–
9
Acquisition of
business
es
–
(
11
3
)
Inves
tment in
financial ass
et – discontinued operations
–
(
19
)
Pr
o
ce
e
ds o
n dis
p
os
a
l of su
bs
id
iar
ies
, n
et of c
a
sh d
is
po
se
d
1,7
51
–
Ne
t ca
s
h
-f
lo
w u
se
d in i
nv
e
s
tin
g a
c
ti
v
i
ti
es
1,
6
3
9
(2
7
9)
Cash-flow
s from financing
activ
ities
Procee
ds from exercise of
share options
3
3
Share buyb
acks
(
67
2
)
–
Pu
r
ch
as
e of s
ha
re
s b
y E
mp
lo
ye
e B
en
ef
it Tru
st
(
21)
(22)
Pr
o
ce
e
ds r
e
cei
v
e
d on e
xer
c
is
e of e
mp
lo
ye
e s
har
e o
pt
io
ns
1
–
Set
tlement of cash-set
tled options
(1)
–
Div
idends paid
to equity shareholders
(19
7
)
(
2
51)
Lease payments
(50)
(6
0)
Red
uc
t
io
n an
d re
p
ay
m
ent o
f bo
r
r
o
w
in
gs
(3
8
8)
–
Ca
sh i
nf
lo
w f
r
om m
atu
r
ed d
er
iv
at
i
ve f
i
na
nc
ial i
ns
t
r
um
ent
s
30
5
Net cash-flow used in
financing activities
(1,
2
9
5)
(325)
Ne
t de
cr
e
as
e i
n ca
s
h an
d c
a
sh e
qu
i
v
al
en
t
s
7
11
12
2
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s a
t be
gi
nn
in
g of ye
a
r
56
3
480
Ca
sh h
el
d in d
is
po
s
al g
r
oup
63
(3
8)
E
xchange dif
fere
nces
(52)
(
1)
Cash and cash equivalent
s at end
of year
1
,285
563
Cash and cash equivalent
s at end
of year c
ompr
ise:
– ca
s
h at b
ank a
nd i
n ha
nd
295
304
– shor
t-t
er
m deposits
991
2
59
1,
2
8
6
56
3
– ba
nk o
ve
r
dr
af
t
s
(1)
–
1
,285
563
UNAUDITED
US DOLLAR PRIMARY ST
A
TEM
ENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
169
Una
udit
ed Grou
p US dollar finan
cial rec
ord 201
8
-
202
2
Th
e he
ad
li
ne in
co
me s
ta
teme
nt met
r
ic
s s
ho
w
n be
lo
w fo
r the y
ea
r en
de
d 31 July 2
018 ha
s be
en r
ep
r
es
ente
d to sh
ow t
he r
e
su
lt
s of S
mit
hs
Medical as a discon
tinued operation.
Ye
a
r e
nd
e
d
31 Ju
ly 2
0
2
2
$m
Y
ear ended
31 Ju
l
y 2
0
21
$m
Y
ear ended
31 Ju
l
y 2
0
2
0
$m
Y
ear ended
31 Ju
l
y 2
019
$m
Y
ear ended
31 Ju
l
y 2
018
$m
Income statement
metric
s –
headline*
Continuing operations
Revenue
3,3
77
3,26
4
3
,
2
16
3,
218
3
,1
3
9
Headl
ine oper
ating prof
it
5
49
504
41
2
550
52
3
He
ad
li
ne p
r
of
it b
ef
or
e t
a
x
495
450
3
51
484
4
49
Discontinued operations
Revenue
468
1
,15
2
1,1
5
9
1
,1
2
6
1
,1
7
2
Headl
ine oper
ating prof
it
87
240
232
18
9
2
10
He
ad
li
ne p
r
of
it b
ef
or
e t
a
x
86
2
39
227
18
5
208
Income statement
metric
s –
statutor
y
**
Revenue
3,377
3,26
4
3
,
2
16
3
,
218
3
,1
3
9
Oper
ating profit
15
4
4
42
304
420
4
61
Profit before taxation
13
5
325
169
3
91
386
Pr
o
fi
t fo
r th
e ye
a
r
1,
3
6
2
3
87
3
37
2
91
375
Balance sheet metrics**
*
Net d
eb
t
(18
3
)
(1
,
415
)
(1,
49
5
)
(
1,
4
6
2
)
(
1
,1
7
2
)
Shareholders’ equity
3,28
5
3,3
39
3
,1
0
7
2,882
2
,9
8
2
Aver
age capit
al employed
3,578
5,7
9
0
5,652
4
,8
52
4
,9
0
3
Ratios***
He
ad
li
ne o
pe
r
a
tin
g pr
o
f
it: r
e
v
en
ue (
%
)
1
6.5
16
.9
14
.7
17.
0
1
7.
0
He
ad
li
ne e
f
fe
c
t
i
ve t
a
x r
at
e (%
)
2
7.
2
2
7.1
26.2
2
5
.9
25.8
Retu
r
n on c
a
pi
t
al e
mpl
o
ye
d (
%
)
14
.
2
13
.
2
11.
8
14
.
4
14
.
6
Return on
shareholders’ funds (%)
9.
9
12
.
2
10
.
6
1
2
.1
12
.
5
Cash-flow metric
s**
*
Headl
ine oper
ating cash
829
855
7
26
611
725
Headline oper
ating cash conver
sion (%)
76
12
5
12
3
83
9
9
Free cash-
flow
17
1
52
0
3
45
3
01
4
07
Fr
ee c
a
sh
-f
lo
w p
er s
ha
r
e (c
)
4
7.
2
1
3
1.1
6
8
.9
7
6
.1
10
2
.9
Ea
r
n
in
gs p
e
r sh
ar
e*
**
He
ad
li
ne e
ar
ning
s pe
r sh
ar
e (
c
)
10
8
.6
12
6
.
3
1
0
7.
0
12
4
.7
12
2
.
3
Divi
dends and dividend cover**
*
Ce
nt
s p
er s
har
e (
c
)
5
2
.1
5
1
.1
4
4.2
5
9.1
6
0
.1
Headl
ine div
idend cove
r
2
.1
2
.5
2.4
2
.1
2.0
*
T
he h
e
ad
l
in
e i
nc
om
e s
t
at
em
en
t me
t
r
ic
s i
n t
he a
b
ov
e f
i
v
e
-y
e
ar r
e
c
or
d h
a
ve b
e
e
n pr
e
s
en
te
d to r
e
f
le
c
t t
he r
e
c
l
as
s
i
fi
c
at
i
on o
f th
e S
mi
t
hs M
e
di
c
al b
u
si
ne
s
s a
s a d
is
c
on
ti
nu
e
d op
e
r
a
ti
on a
n
d
th
e Gr
o
u
p's c
ur
r
e
nt a
cc
o
un
ti
ng p
o
l
ic
y of in
cl
ud
i
ng r
e
s
t
r
uc
t
u
r
in
g a
nd p
e
ns
io
n a
dm
in
i
s
tr
a
t
io
n co
s
t
s w
i
th
in h
e
a
dl
in
e p
r
of
i
t
. T
he d
i
sc
o
nt
in
ue
d o
pe
r
a
ti
o
ns c
o
mp
a
r
at
i
v
e
s fo
r th
e y
e
ar e
nd
e
d
31 Ju
l
y 2
018 h
av
e a
l
s
o b
ee
n r
e
s
ta
te
d f
or t
he a
d
op
ti
o
n of I
F
R
S 15.
*
*
T
h
e s
t
at
u
to
r
y inc
om
e s
t
at
em
e
nt m
et
r
ic
s a
r
e p
r
es
e
nt
ed b
a
s
ed o
n c
on
ti
nu
i
ng o
p
er
ati
on
s f
or b
ot
h t
he c
ur
ren
t an
d c
om
p
ar
ati
v
e y
ea
r.
*
*
*
B
a
l
an
c
e sh
e
et m
et
r
i
c
s
, r
at
i
os
, c
a
sh
-
f
lo
w m
et
r
ic
s, e
ar
n
in
g
s p
er s
ha
r
e, d
i
v
i
de
n
d co
v
er a
n
d nu
mb
e
r of e
mp
l
oy
e
e
s ar
e p
r
e
s
en
te
d b
as
e
d on b
o
th c
on
ti
n
ui
ng a
n
d di
s
co
nt
in
u
ed o
p
er
ati
on
s f
or
all years.
UNAUDITED
US DOLLAR PRIMARY ST
A
TEM
ENTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
17
0
Comp
any b
al
ance she
et
Notes
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
NON-CURR
ENT A
SSE
T
S
Ri
ght of u
s
e as
s
et
s
2
5
6
Inves
tments
3
2,422
2
,
414
Loans due from subsidiaries
3
5
61
611
Retirement benefit assets
10
309
546
Financial der
iv
ative
s
8
–
75
3,297
3,652
CURRENT ASSE
TS
T
r
ad
e an
d ot
he
r re
ce
i
v
ab
le
s
5
62
52
Cur
rent t
a
x r
ec
ei
v
a
bl
e
5
5
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
7
770
15
8
Financial der
iv
ative
s
8
9
2
846
2
17
TOT
AL AS
SETS
4
,1
4
3
3,
8
69
CURRE
NT LIABI
LITIES
T
r
ad
e an
d ot
he
r pa
y
ab
le
s
6
(
58
8)
(
91)
Lease liabil
ities
7
(1)
(1)
Financial der
iv
ative
s
8
(2
9)
(2)
(
61
8
)
(94)
NON-CU
RRENT
LIABILITIES
Bor
ro
win
gs
7
(5
45)
(1
,35
4)
Lease liabil
ities
7
(5)
(6)
Prov
isions for liabilities and
charge
s
9
(2)
(2)
Retirement benefit liabilities
10
(
47
)
(5
8)
Financial der
iv
ative
s
8
(20)
–
Deferr
ed tax liabilitie
s
4
–
(28)
(
61
9
)
(1,
4
4
8)
TOT
AL
LIA
BILITI
ES
(1,
2
3
7
)
(1,
5
4
2
)
N
ET
ASSETS
2,
906
2,327
SHA
REHOLDER
S' EQUIT
Y
Calle
d up share capital
11
13
6
149
Shar
e premium account
11
365
363
Capital re
demption reser
ve
11
19
6
Other re
ser
ves
11
181
18
1
Pr
o
fi
t an
d lo
s
s ac
co
unt
11
2,2
05
1,
6
2
8
TOT
AL EQU
IT
Y
2,
906
2,327
Th
e C
omp
an
y
's pr
of
it fo
r th
e per
iod w
a
s £1
,2
5
7m (F
Y
2
0
21
: £
2m l
os
s
).
Th
e ac
cou
nt
s on p
ag
e
s 1
71 to 1
79 w
er
e ap
pr
o
ve
d b
y the B
o
ar
d of D
ir
ec
to
r
s on 2
2 S
e
ptemb
er 2
0
2
2 and we
r
e sig
ne
d on i
t
s beh
al
f by
:
Paul Keel
Clare S
cherrer
CHIE
F E
XEC
U
T
I
V
E O
F
F
ICE
R
CHIEF F
I
N
A
NC
I
A
L OF
F
I
CER
Smi
th
s Gr
ou
p plc – r
e
gis
te
re
d nu
mbe
r 137013
SMI
TH
S G
RO
UP P
LC C
OM
PAN
Y AC
C
OU
NT
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
171
Compan
y statem
ent o
f cha
nges in equ
it
y
Share
capital
£m
Share
premium
£m
Capital
redemption
reser
ve
£m
Other
reserves
£m
Retained
profit
£m
Shareholders’
equity
£m
At 31 J
uly 2
021
149
363
6
18
1
1,
6
2
8
2,327
P
r
of
it f
or t
he y
e
ar
–
–
–
–
1,257
1
,257
O
ther comprehensi
ve income:
– re-m
easurement of retirement benefits
–
–
–
–
(
2
3)
(
2
3)
– taxation reco
gnised on retirement benefit
s
–
–
–
–
6
6
T
otal
comprehensive income for
the year
–
–
–
–
1,
2
4
0
1,
2
4
0
T
rans
ac
tions with ow
ner
s:
I
ss
ue o
f ne
w e
qu
it
y sha
re
s
–
2
–
–
–
2
P
ur
ch
a
se o
f sh
ar
e
s by E
m
pl
oy
e
e Be
nef
i
t T
r
us
t
–
–
–
–
(16
)
(16
)
Pr
o
ce
e
ds r
e
cei
v
e
d on e
xer
c
is
e of e
mp
lo
ye
e s
har
e o
pt
io
ns
–
–
–
–
1
1
Share
s purchased under
a buyback progr
amme
(13
)
–
13
–
(
5
11
)
(
5
11)
Div
idends paid t
o equity shareholder
s
–
–
–
–
(15
0
)
(15
0
)
Share-bas
ed payment
–
–
–
–
13
13
T
ot
al t
r
a
ns
a
c
ti
on
s w
i
th o
w
ne
r
s re
co
gn
i
se
d i
n eq
ui
t
y
(13)
2
13
–
(6
6
3)
(
6
61
)
At 31 J
uly 2
0
2
2
13
6
365
19
181
2,2
05
2,
906
Share
capital
£m
Share
premium
£m
Capital
redemption
reser
ve
£m
Other
reserves
£m
Retained
prof
it
£m
Shareholders’
equit
y
£m
At 31 J
uly 2
02
0
149
3
61
6
181
1,
812
2,50
9
P
r
of
it f
or t
he y
e
ar
–
–
–
–
(2)
(2)
O
ther comprehensi
ve income:
– re-m
easurement of retirement benefits
–
–
–
–
12
12
– taxation reco
gnised on retirement benefit
s
–
–
–
–
(6)
(6)
T
otal
comprehensive income for
the year
–
–
–
–
4
4
T
rans
ac
tions with ow
ner
s:
I
ss
ue o
f ne
w e
qu
it
y sha
re
s
–
2
–
–
–
2
P
ur
ch
a
se o
f sh
ar
e
s by E
m
pl
oy
e
e Be
nef
i
t T
r
us
t
–
–
–
–
(16
)
(16
)
Div
idends paid t
o equity shareholder
s
–
–
–
–
(
18
5
)
(18
5
)
Share-bas
ed payment
–
–
–
–
13
13
T
ot
al t
r
a
ns
a
c
ti
on
s w
i
th o
w
ne
r
s re
co
gn
i
se
d i
n eq
ui
t
y
–
2
–
–
(18
8)
(18
6
)
At 31 J
uly 2
0
21
14
9
36
3
6
181
1,
6
2
8
2,327
SMITHS
GROUP PLC
COMP
ANY ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
17
2
Com
pany
accounting
pol
icie
s
Basis
of prep
ar
ation
Th
e
se f
in
an
cia
l st
ate
ment
s w
er
e p
r
ep
ar
ed i
n acc
or
da
nce w
i
th F
in
an
cia
l Repo
r
ting S
ta
nd
ar
d 101 Reduc
ed D
is
cl
osu
r
e Fr
am
ew
o
r
k (
‘F
R
S 101
’).
In pr
ep
ar
ing the
s
e f
ina
nc
ial s
t
atem
ent
s
, th
e Co
mp
any a
pp
li
es t
he r
e
co
gni
tio
n, m
ea
sur
e
ment a
nd d
is
clo
su
re r
e
qui
re
me
nt
s of UK-a
do
pte
d
inter
n
ati
ona
l acc
ount
in
g st
an
da
rd
s (
‘
Ad
opte
d IF
R
S
s’), bu
t ma
kes am
en
dme
nt
s w
he
re n
ec
e
ss
a
r
y in or
d
er to co
mpl
y w
it
h Co
mp
ani
es A
c
t 2
0
06
and h
as s
et o
ut b
elo
w w
h
er
e ad
v
a
nta
ge of t
he F
R
S 101 dis
cl
os
ur
e exem
pti
on
s has b
e
en t
aken
.
Th
e
se a
cco
unt
s h
av
e be
en p
re
p
ar
ed o
n a goi
ng c
onc
er
n b
as
is an
d un
der t
he hi
s
tor
i
c
al co
st c
on
ve
ntio
n mo
di
fi
ed to i
ncl
ud
e re
v
al
uat
ion
of cer
t
ain f
in
anc
ial in
s
tr
u
ment
s, sh
ar
e opt
ion
s an
d pe
ns
ion a
s
se
t
s and l
ia
bil
i
tie
s he
ld at f
a
ir v
al
ue.
A
s p
er
m
it
te
d b
y S
ec
ti
on 4
08
(
3
) of th
e Co
mp
ani
e
s Ac
t 2
0
06
, the C
o
mp
any
’s incom
e s
tate
me
nt and s
t
atem
ent of c
omp
r
ehe
ns
i
ve i
nco
me h
av
e
not b
ee
n pr
e
se
nted
. A
s p
er
mit
te
d by S
e
c
ti
on 4
0
8(
2
), infor
m
atio
n ab
ou
t the C
om
p
any
’s emplo
y
ee n
umb
er
s a
nd co
s
t
s is n
ot pr
e
s
ente
d.
Going
concer
n
Th
e Di
re
c
tor
s are s
at
is
f
ie
d tha
t the G
r
oup, (
of w
hic
h th
e Co
mp
any i
s th
e ho
ldi
ng co
mp
an
y) h
as a
de
qu
ate r
es
ou
rc
es to c
ont
inu
e to op
er
ate
for a p
er
i
od n
ot le
s
s th
an 12 month
s fr
o
m the d
ate of ap
pr
o
v
al of t
he f
in
anc
ial s
t
atem
ent
s an
d th
at th
er
e ar
e no m
ater
i
al un
cer
ta
inti
es
ar
oun
d th
eir a
s
se
s
sm
ent
. A
cco
r
din
gly, the D
ir
ec
to
r
s co
ntin
ue to a
dop
t the g
oin
g co
nce
r
n b
asi
s of ac
cou
ntin
g. D
et
ail
s of the go
in
g con
cer
n
as
s
es
s
ment f
or th
e Gr
o
up ar
e pr
o
v
id
ed i
n the a
cco
unti
ng p
ol
ic
ie
s note of t
he c
on
so
li
date
d f
ina
nci
al s
t
ateme
nt
s
.
E
xe
mptio
ns from the requirem
ents of I
FR
S applied i
n accorda
nce with FRS 1
01
Th
e fo
ll
ow
i
ng exe
mpt
ion
s f
r
om th
e r
equ
ir
em
ent
s of IF
R
S h
av
e be
en a
ppl
i
ed in t
he p
re
pa
r
at
ion o
f the
s
e f
ina
nci
al s
t
ateme
nt
s
,
in acc
or
da
nce w
i
th F
R
S 101
:
–
Pa
r
a
gr
a
ph
s 4
5
(
b) an
d 4
6 to 5
2 of IF
R
S 2
, ‘S
har
e
-b
a
se
d p
ay
me
nt’ (
det
ai
l
s of th
e num
be
r and w
ei
ghte
d-
av
er
a
ge e
xer
ci
se p
r
ic
es o
f sha
re
opti
on
s
, and h
o
w the f
a
ir v
alu
e of go
o
ds or s
er
v
i
ce
s r
ece
i
ve
d w
as d
eter
mine
d)
–
IFRS 7
,
‘Financial Instruments: Disclosure
s
’
–
Pa
r
a
gr
a
ph
s 91 to 9
9 of IF
R
S 13, ‘Fai
r v
alu
e me
as
ur
eme
nt’ (
dis
c
los
ur
e of v
al
uat
ion te
ch
niq
ue
s an
d inp
ut
s u
se
d fo
r fa
ir v
al
ue me
a
sur
em
ent
of as
s
et
s an
d l
iab
ili
ti
es
).
–
Pa
r
a
gr
a
ph 3
8 o
f I
A
S 1
, ‘Pr
e
s
ent
ati
on of f
in
anc
ial s
t
atem
ent
s’ com
pa
r
at
i
ve inf
or
m
ati
on r
eq
uir
em
ent
s in r
e
sp
e
c
t of:
–
p
ar
agr
aph 79
(
a
)(
i
v
) of I
A
S 1
;
–
p
ar
agr
aph 7
3
(e) o
f I
A
S 1
6 ‘Pr
op
er
t
y, pl
a
nt and e
qu
ipm
ent
’
;
–
Th
e fo
ll
ow
i
ng p
ar
a
gr
aphs o
f I
A
S 1
, ‘Pr
e
s
ent
atio
n of f
in
anc
ial s
t
atem
ent
s’
–
10
(d
) (
st
ate
ment o
f c
ash
-f
lo
w
s
),
–
16 (s
t
atem
ent of c
omp
li
an
ce w
it
h al
l IF
R
S),
–
3
8
A (r
e
quir
e
ment f
or mi
nim
um of t
wo pr
i
mar
y s
t
atem
ent
s
, inc
lu
din
g c
ash f
l
ow s
t
atem
ent
s
),
–
3
8
B-D (additional comparativ
e information),
–
1
1
1 (ca
sh f
lo
w s
tate
me
nt info
r
mat
ion
), an
d
–
134
-
136 (capital management disclosures)
–
I
A
S 7
, ‘S
tate
me
nt of c
as
h-f
lo
w
s’
–
Pa
r
a
gr
a
ph 3
0 an
d 31 of I
A
S 8 ‘
Acco
unti
ng p
ol
ici
e
s, c
han
ge
s in a
cco
unti
ng e
s
tim
ate
s an
d er
r
or
s
’ (r
e
qui
re
me
nt for t
he di
sc
lo
sur
e
of info
r
mat
io
n w
hen a
n enti
t
y has no
t app
li
ed a n
ew I
F
R
S tha
t has b
e
en is
s
ue
d bu
t is n
ot yet e
f
fe
c
ti
v
e)
–
Pa
r
a
gr
a
ph 17 of IA
S 24
, ‘Rel
ated pa
r
t
y dis
c
los
ur
e
s’ (key m
ana
ge
men
t com
pe
ns
at
ion
)
–
Th
e r
eq
uir
em
ent
s in I
A
S 2
4, ‘
Rel
ate
d pa
r
t
y di
sc
lo
sur
e
s’ to dis
clo
s
e re
l
ated p
ar
t
y tr
an
s
ac
ti
on
s enter
e
d into b
et
wee
n t
w
o or m
or
e me
mb
er
s
of a gr
oup
.
–
Th
e r
eq
uir
em
ent
s of p
ar
agr
a
ph
s 52 a
nd 5
8 o
f IF
R
S 16 Leas
e
s
SMITHS
GROUP PLC
COMP
ANY ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
17
3
Sign
ificant judg
emen
t
s, key assum
ptions a
nd estimat
es
Th
e pr
e
pa
r
ati
on of t
he a
cco
unt
s in c
onfo
r
mi
t
y w
i
th g
ene
r
a
lly a
cce
pted a
cco
unt
ing p
r
in
cip
le
s r
equ
ir
e
s man
ag
eme
nt to ma
ke es
ti
mate
s an
d
jud
gem
ent
s t
hat af
fec
t t
he r
ep
or
ted am
ou
nt
s of as
s
et
s an
d l
iab
il
it
ie
s and d
is
cl
os
ur
e of con
tin
gent a
s
s
et
s an
d li
abil
i
tie
s at t
he da
te of th
e
acc
ount
s a
nd th
e r
ep
or
ted am
oun
t
s of r
ev
enu
e
s and e
xp
en
s
es d
ur
in
g th
e re
po
r
ting p
er
i
od
. A
c
tua
l r
es
ult
s m
ay d
if
fer fr
o
m the
s
e e
st
ima
tes
.
Th
e key s
o
ur
ce
s of e
st
imat
io
n unc
er
tai
nt
y to
get
he
r w
ith t
he s
igni
f
ic
ant j
ud
gem
ent
s a
nd a
ss
ump
tio
ns u
se
d in t
he
se P
a
r
ent C
omp
an
y f
ina
nci
al
st
atem
ent
s a
re s
et o
ut b
el
ow.
So
urce
s of e
s
timation un
cer
taint
y
Taxation
Th
e C
omp
an
y ha
s r
eco
gn
is
ed d
efer
red t
a
x as
s
et
s of £
6
6m (
F
Y
2
0
21
: £
8
9m
) re
l
ati
ng to r
e
ve
nue l
os
s
es b
r
ou
ght fo
r
w
ar
d. T
h
e r
eco
gn
iti
on of
the
s
e as
s
et
s r
eq
uir
e
s ma
na
gem
ent to m
ake sig
nif
i
c
ant e
st
im
ates a
s to th
e abi
li
t
y to rec
ov
er t
hem a
ga
ins
t th
e un
w
ind o
f othe
r ta
x p
os
iti
on
s
and f
or
ec
a
s
t UK t
ax
ab
le pr
of
i
t
s of th
e ta
x gr
o
up. Fu
r
ther d
eta
il on t
he C
omp
an
y
’s defer
r
ed t
a
xat
ion p
o
sit
io
n is in
clu
de
d in no
te 4.
Retirement benefits
Dete
r
min
ing t
he v
al
ue of t
he f
ut
ur
e def
i
ne
d ben
ef
it o
bl
ig
ati
on in
vo
lv
es s
ign
if
ic
an
t es
ti
mate
s in r
e
sp
ec
t o
f the a
s
sum
pti
on
s us
ed to c
al
cul
ate
pr
e
se
nt v
alu
e
s. T
h
es
e in
cl
ude f
u
tur
e m
or
ta
li
t
y
, dis
co
unt r
ate and inf
l
ati
on
. T
he C
om
pa
ny u
se
s pr
e
v
io
us e
xp
er
i
enc
e and i
nd
ep
end
ent
ac
tu
ar
i
al ad
v
i
ce to s
ele
c
t th
e v
alu
e
s for c
r
it
ic
al e
s
tim
ate
s
. A por
ti
on of t
he C
omp
an
y
’s pensi
on l
ia
bil
it
ie
s ar
e in
sur
e
d v
ia b
ul
k annu
it
y pol
ic
ie
s
w
hic
h br
o
adl
y match t
he s
ch
em
e obl
ig
ati
on to id
ent
if
ie
d gr
ou
ps of p
en
sio
ne
r
s
. T
he
s
e as
s
et
s ar
e v
al
ue
d by a
n ex
te
r
na
l qua
li
f
ied a
c
tu
ar
y at
the actuar
ial valuation of the corre
sponding liabil
it
y, reflecting this matching relationship.
Th
e C
omp
an
y
's pr
in
cip
al d
ef
ine
d be
nef
i
t pe
nsi
on p
l
an
s hav
e b
ee
n clo
s
ed s
o th
at no f
u
tur
e b
enef
i
t
s ar
e ac
cr
u
ed
. Cr
i
tic
a
l es
ti
mate
s fo
r the
s
e
pl
an
s
, and t
he ef
fec
t of v
a
r
ia
nce
s in t
he
se e
s
ti
mate
s
, ar
e di
sc
lo
se
d in n
ote 8 to the c
on
so
l
idate
d f
in
anc
ial s
t
atem
ent
s
.
Signif
ic
ant judg
ement
s m
ade in
apply
ing
accounting
pol
icie
s
Taxation
A
s s
t
ated i
n the p
r
ev
i
ou
s se
c
ti
on '
S
our
ce
s of e
s
ti
mati
on un
ce
r
taint
y', the Co
mp
an
y ha
s re
co
gni
s
ed d
efer
r
e
d ta
x a
s
set
s o
f £6
6
m
(F
Y
2
0
21: £89
m) r
e
l
atin
g to r
ev
en
ue lo
s
s
es b
r
oug
ht for
w
a
r
d. T
h
e de
cis
ion to r
e
co
gni
se d
efe
r
r
ed t
a
x as
s
et
s r
eq
uir
e
s jud
ge
ment i
n
deter
minin
g w
heth
er t
he C
omp
an
y w
il
l be a
ble to u
til
i
se h
is
tor
i
c
al t
ax l
os
s
e
s in f
ut
ur
e pe
r
io
ds
. It h
as b
e
en co
ncl
ud
ed t
hat th
er
e ar
e s
uf
fic
ient
ta
xa
bl
e pr
of
it
s i
n fu
tu
re p
er
iods to s
upp
or
t r
ec
og
nit
ion
.
Retirement benefits
At 31 Ju
ly 2
0
2
2 th
e Co
mp
an
y ha
s re
co
gni
s
ed £
3
0
9
m of r
etir
em
ent b
en
ef
it a
s
set
s (
F
Y
2
0
21
: £
5
4
6m), w
hi
ch ar
ise
s f
ro
m th
e r
igh
t
s of th
e
emp
lo
ye
r
s to r
ec
ov
er t
he su
r
pl
us at th
e en
d of th
e li
fe of t
he s
ch
eme
.
Th
e r
ec
og
nit
ion o
f thi
s sur
plus is a s
ign
if
ic
a
nt jud
ge
ment
. T
h
er
e is ju
dg
em
ent r
eq
uir
e
d in dete
r
min
in
g wh
eth
er a
n unco
nd
it
ion
al r
i
ght of
ref
un
d ex
is
t
s b
as
e
d on th
e pr
o
v
is
ion
s of th
e r
ele
v
ant t
r
us
t d
ee
d an
d r
ul
es
. Ha
v
in
g ta
ken le
gal a
d
v
ic
e w
it
h re
ga
r
d to the r
ight
s of th
e Co
mp
any
und
er th
e r
ele
v
ant T
r
u
st d
ee
d an
d r
ul
es
, i
t ha
s be
en d
eter
m
ine
d th
at the s
ur
p
lus i
s r
ec
ov
er
able b
y th
e Co
mp
any a
nd t
her
ef
or
e c
an b
e
re
co
gni
s
ed
. If th
e pe
ns
ion s
c
hem
es w
e
re w
ou
nd up w
h
ile t
he
y s
til
l ha
d mem
be
r
s
, th
e sc
hem
e
s wo
ul
d ne
ed to b
u
y ou
t the b
en
ef
it
s of a
ll
mem
be
r
s
. T
he bu
y
ou
t
s w
oul
d co
s
t sig
nif
ic
a
ntly m
or
e th
an t
he c
ar
r
y
in
g v
al
ue of t
he s
che
me l
ia
bil
it
ie
s w
it
hin t
he
s
e fi
nan
cia
l s
tate
me
nt
s
w
hic
h ar
e c
alc
ul
ate
d in ac
cor
d
anc
e w
ith I
A
S 19
: Em
pl
oy
ee b
en
ef
it
s
.
Foreign
cur
ren
cies
For
ei
gn c
ur
r
en
c
y tr
ans
ac
t
io
ns ar
e r
e
cor
d
ed at t
he e
xcha
ng
e r
ate r
u
li
ng on t
he d
ate of tr
ans
ac
t
io
n. Fo
r
eig
n exch
an
ge ga
ins a
nd l
os
s
es
re
s
ulti
ng f
r
om th
e s
et
tl
eme
nt of su
ch t
r
an
s
ac
t
ion
s
, an
d fr
om t
he r
et
r
an
sl
at
io
n at ye
ar
-
en
d exch
an
ge r
a
tes of m
on
et
ar
y as
s
et
s an
d l
iab
il
iti
es
den
omi
nate
d in fo
r
eig
n cur
r
e
nci
es
, a
re r
e
co
gni
se
d in t
he pr
of
i
t an
d los
s a
cco
unt
.
Leases
At th
e co
mme
nce
me
nt date of t
he le
as
e, t
he C
om
pa
ny r
e
cog
nis
e
s le
as
e l
iab
il
it
ie
s me
as
ur
ed at t
he p
re
s
ent v
a
lue o
f lea
s
e pa
y
me
nt
s to be
mad
e o
ver t
he l
ea
se te
r
m, w
h
ich i
nc
lud
es p
er
iods c
ov
er
e
d by r
e
ne
w
al o
ptio
ns t
he C
om
pa
ny is r
e
as
on
ab
ly ce
r
tain to e
xer
cis
e
. In c
alc
ul
at
ing
the p
r
es
ent v
alue of le
a
se p
ay
m
ent
s
, t
he C
omp
an
y us
e
s the i
nc
re
men
ta
l bor
ro
w
ing r
ate at the l
ea
se c
omm
en
cem
ent d
ate.
Th
e C
omp
an
y r
ec
ogn
is
e
s r
ight o
f us
e as
s
et
s at th
e co
mme
nce
me
nt date of t
he le
a
se
. Ri
ght of us
e a
s
set
s a
r
e me
asu
r
ed at c
os
t inc
lu
din
g
the a
mo
unt of le
as
e l
iab
il
it
ie
s r
ec
ogn
is
ed a
nd in
it
ial di
r
ec
t co
s
t
s inc
ur
r
e
d, l
es
s a
ny in
cent
i
ve
s gr
anted b
y th
e le
s
so
r
. Right of u
se a
s
set
s are
sub
jec
t to i
mp
air
m
ent a
nd ar
e d
epr
e
ci
ated o
ve
r th
e sho
r
ter of th
e lea
s
e ter
m an
d th
e us
ef
ul l
ife o
f the r
ight of us
e as
s
et
.
Th
e C
omp
an
y ha
s a bui
ldi
ng
s le
as
e w
it
h a ter
m of s
e
ve
n ye
ar
s
. O
th
er l
ea
se
s w
i
th le
as
e ter
ms of 12 months o
r le
s
s an
d le
as
e
s of of
f
i
ce
equ
ipm
ent w
i
th lo
w v
a
lue (
t
y
p
ic
al
ly b
elo
w £
5
,0
0
0) ar
e r
ec
og
nis
e
d as an e
xp
en
se o
n a s
tr
a
ight-l
in
e ba
si
s ov
er t
he le
a
se te
r
m w
it
h the
Co
mp
any h
av
i
ng ap
pl
ie
d ‘sho
r
t
-ter
m leas
e’ and ‘
le
as
e of l
ow
-
v
alu
e as
s
et
s’ re
co
gni
ti
on e
xempt
io
ns
.
SMITHS
GROUP PLC
COMP
ANY ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
174
Investme
nts in and loans t
o Group com
panies
Th
e C
omp
an
y’s inv
e
st
me
nt
s in sh
ar
e
s in Gr
ou
p com
p
anie
s a
re s
t
ate
d at cos
t l
es
s p
r
ov
i
sio
n for i
mp
air
m
ent
. A
n
y imp
air
ment is c
har
g
ed to
the p
r
of
it an
d lo
s
s acc
ount a
s it a
r
is
e
s.
Th
e r
ec
ov
er
abil
it
y of inter
co
mp
any l
o
ans i
s as
s
e
s
se
d ap
ply
i
ng th
e met
ho
do
lo
g
y of IF
R
S 9 b
y lo
ok
ing at t
he c
re
di
t qu
al
it
y of the s
ubs
idi
ar
y
and a
ny su
pp
or
t av
ai
l
ab
le to th
e enti
t
y
. T
he
s
e c
alc
ul
ati
on
s r
equ
ir
e th
e us
e of e
st
ima
tes i
ncl
udi
ng p
ro
je
c
ted f
u
tur
e c
a
sh
-fl
o
w
s and ot
he
r
fu
tu
re e
v
ent
s
. T
he ap
pl
ic
at
io
n of th
e ex
pe
c
ted c
re
di
t lo
s
s mo
del h
as n
ot ha
d a mate
r
ia
l imp
ac
t o
n the C
o
mp
any
's lo
an r
e
cei
v
a
ble
s
prov
isioning position.
Fin
ancial in
str
uments
Th
e p
ol
ici
es d
is
cl
os
ed i
n the G
r
oup a
cco
unti
ng p
ol
ic
ie
s on p
ag
e
s 108 to 1
1
5 for r
e
co
gni
tio
n, m
ea
su
re
me
nt and p
r
es
ent
at
ion o
f fi
nan
ci
al
ins
tr
ument
s a
re a
pp
li
ed in t
he C
om
pa
ny ac
co
unt
s
.
T
ax
ation
Defe
r
r
ed t
a
x is p
ro
v
id
ed u
sin
g th
e ba
l
an
ce sh
eet l
ia
bil
i
t
y m
eth
od
. A defe
r
r
ed t
a
x as
s
et is r
e
co
gni
se
d w
he
r
e it i
s pr
ob
ab
le th
at f
ut
ur
e ta
x
abl
e
inc
ome w
i
ll b
e su
f
f
ic
ient to u
til
i
se t
he a
v
ail
a
ble r
e
li
ef.
Defe
r
r
ed t
a
x is p
ro
v
id
ed o
n tem
por
ar
y dif
fer
enc
es a
r
is
ing o
n in
ve
s
tme
nt
s in s
ubs
idi
ar
ie
s
, exc
ept w
h
er
e th
e timi
ng of t
he r
e
ver
sal o
f the
temp
or
ar
y dif
f
er
en
ce is c
ontr
o
ll
ed b
y th
e Co
mp
an
y and i
t is p
r
ob
abl
e th
at the te
mp
or
a
r
y dif
fer
enc
e w
il
l not r
e
ve
r
s
e in th
e for
e
s
ee
abl
e f
ut
ur
e.
Pr
ov
isions
Pr
o
v
isi
on
s for d
isp
o
s
al in
dem
nit
ie
s
, r
es
tr
uc
tur
i
ng c
os
t
s
, pr
op
er
t
y d
il
ap
ida
tio
ns a
nd le
ga
l cl
ai
ms a
re r
e
co
gni
se
d w
he
n: the C
om
pa
ny h
as a
leg
al o
r con
s
tr
u
c
ti
v
e obl
ig
ati
on a
s a re
s
ult of a p
a
st e
v
ent; i
t is p
ro
ba
bl
e that a
n ou
t
f
lo
w of r
e
so
ur
ce
s w
ill b
e r
eq
uir
e
d to se
t
tle t
he o
bl
ig
atio
n;
and t
he am
ou
nt ha
s be
en r
el
ia
bly e
s
tim
ate
d. P
r
ov
i
sio
ns a
re n
ot r
ec
og
nis
e
d for f
u
tur
e op
er
ating l
os
s
e
s.
Pr
o
v
isi
on
s ar
e di
sc
ounte
d w
he
r
e the t
ime v
a
lue o
f mo
ne
y is ma
ter
ia
l
.
Retirement benefit
s
Th
e C
omp
an
y ha
s bot
h def
in
ed b
en
ef
it an
d def
i
ne
d cont
r
ib
uti
on p
l
an
s. T
h
e po
li
ci
es d
is
clo
s
ed in t
he G
r
oup a
cco
untin
g p
ol
ici
e
s on p
ag
es 10
8
to 1
1
5 for r
eco
gn
iti
on
, me
as
ur
em
ent an
d pr
e
se
nt
atio
n of r
eti
re
me
nt ben
ef
it
s a
r
e app
li
ed i
n the C
om
pa
ny a
cco
unt
s
. Note 8 to t
he co
ns
ol
i
date
d
acc
ount
s e
xp
l
ain
s th
e v
alu
ati
on b
asi
s fo
r the C
om
pa
ny
's r
etir
em
ent b
en
efi
t s
ch
eme
s a
ss
et
s a
nd l
ia
bil
it
ie
s
.
Share-based pay
ment
Th
e C
omp
an
y op
er
ates a num
be
r of eq
ui
t
y
-s
et
t
le
d an
d ca
sh
-s
et
t
le
d sha
r
e-
ba
s
ed c
omp
en
s
ati
on pl
ans
.
Th
e f
air v
a
lue o
f the s
har
e
s or s
ha
re o
pti
on
s gr
a
nted i
s re
co
gni
s
ed o
ve
r th
e ve
s
tin
g pe
r
io
d to r
ef
lec
t t
he v
a
lue o
f the e
mpl
oy
e
e se
r
vi
ce
s
re
ce
i
ve
d. T
h
e cha
r
ge r
el
at
in
g to gr
a
nt
s to emp
lo
ye
e
s of th
e Co
mp
an
y is r
ec
og
nis
e
d as an e
xp
en
se i
n the p
r
of
it a
nd lo
s
s acc
oun
t and t
he
cha
r
ge fo
r gr
a
nt
s to emp
lo
y
ee
s of oth
er G
r
oup c
omp
an
ie
s is r
e
cog
nis
e
d as a
n inv
e
st
me
nt in th
e re
le
v
ant s
ubs
idi
ar
y.
Th
e f
air v
a
lue o
f opt
ion
s gr
anted, e
xclu
din
g th
e imp
ac
t o
f any n
on
-m
ar
ket v
es
t
ing c
on
dit
io
ns
, is c
a
lcu
l
ated u
sin
g e
st
ab
l
ish
ed o
pti
on pr
icin
g
mo
del
s, pr
incip
al
ly b
ino
mia
l mo
del
s. T
he p
r
ob
ab
il
it
y of meet
in
g non
-
mar
ket v
e
s
tin
g con
di
tio
ns
, w
hi
ch in
cl
ude p
r
of
it
ab
il
it
y tar
g
et
s
, is us
e
d to
es
ti
mate t
he nu
mbe
r of sh
ar
e opt
io
ns th
at ar
e l
ikel
y to ve
s
t
.
For c
a
sh
-s
et
t
led s
ha
re
-
ba
se
d p
ay
m
ent s
ch
eme
s
, a l
iab
il
it
y is r
eco
gn
is
ed b
as
e
d on t
he f
air v
a
lue o
f the p
a
y
ment e
ar
n
ed b
y th
e b
al
an
ce sh
ee
t
date. F
or e
qui
t
y-s
et
t
le
d sha
re
-
ba
s
ed p
ay
m
ent s
ch
eme
s
, th
e co
r
r
es
po
ndi
ng c
re
di
t is r
e
cog
nis
e
d dir
e
c
tly i
n re
s
er
v
es
.
Div
idends
Di
v
id
en
ds ar
e r
e
co
gnis
e
d as a l
ia
bil
it
y in th
e pe
r
io
d in w
hi
ch th
ey a
re a
ut
ho
r
is
ed
. T
he i
nter
im d
i
v
ide
nd i
s re
co
gn
is
ed w
h
en i
t is p
aid a
nd th
e
fi
nal d
i
v
ide
nd i
s re
co
gn
is
ed w
h
en i
t has b
e
en ap
pr
o
ve
d by s
ha
re
ho
ld
er
s at t
he A
n
nua
l Ge
ner
al Me
etin
g.
SMITHS
GROUP PLC
COMP
ANY ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
17
5
Not
es to t
he Compan
y acc
oun
ts
1 Audit fee a
nd directors emolumen
ts
Th
e au
di
t fee p
ai
d to K
P
MG L
L
P fo
r th
e Pa
r
ent C
omp
an
y w
as £
0
.
1
m (F
Y
2
0
21
: £0
.
1
m).
Dir
e
c
tor
s' em
olu
ment
s i
n the y
e
ar am
ounte
d to £
4
m (F
Y
2
0
21: £5m
). Fur
the
r info
r
ma
tio
n is in t
he Rem
une
r
at
ion & P
eo
pl
e Co
mmi
t
te
e Repo
r
t
on p
ag
es 7
5 to 8
8.
2 Righ
t of use assets
Proper
tie
s
£m
Cost or valuation
At 31 J
uly 2
02
0
8
At 31 J
uly 2
0
21
8
At 31 J
uly 2
0
2
2
8
Depreciation
At 31 J
uly 2
02
0
1
Cha
r
ge f
or t
he y
ea
r
1
At 31 J
uly 2
0
21
2
Cha
r
ge f
or t
he y
ea
r
1
At 31 J
uly 2
0
2
2
3
Ne
t bo
ok v
a
lu
e a
t 31 Ju
ly 2
02
2
5
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
21
6
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
2
0
7
3 Investme
nts and loans due from sub
sidia
r
ies
Sh
ar
e
s i
n
subsidiar
y
under
tak
ings
£m
Loans
du
e f
r
om
subsidiaries
£m
To
t
a
l
£m
Cost or valuation
At 31 J
uly 2
0
2
0
2
,
41
0
8
69
3,2
79
Foreign exchange
r
ate
movements
–
(
74
)
(
74
)
Contribu
tion through share options
9
–
9
De
cr
e
as
e i
n ad
v
a
nc
es d
ue f
r
om s
ub
si
di
ar
i
es
–
(
18
3)
(18
3
)
At 31 J
uly 2
0
21
2
,
419
61
2
3,
0
31
Foreign exchange
r
ate
movements
–
21
21
Contribu
tion through share options
8
–
8
De
cr
e
as
e i
n ad
v
a
nc
es d
ue f
r
o
m sub
si
di
ar
i
es
–
(
71)
(
7
1)
At 31 J
uly 2
0
2
2
2,427
562
2,
989
Provisi
on for impairment
At 31 J
uly 2
02
0
, 31 Ju
ly 2
0
21 a
nd 31 J
uly 2
02
2
5
1
6
Ne
t bo
ok v
a
lu
e a
t 31 Ju
ly 2
02
2
2,4
22
5
61
2
,9
8
3
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
21
2
,
41
4
6
11
3,0
25
Net b
o
ok v
a
lue a
t 31 Ju
ly 2
0
2
0
2,40
5
868
3,273
Lo
an
s due to s
ub
sid
iar
i
es a
r
e of
f
s
et ag
ain
s
t lo
an
s due f
r
om s
ubs
idi
ar
ie
s to t
he ex
tent that t
he
re i
s a le
gal r
ight of s
et of
f a
nd a
n intent
ion to
set
tle th
e ba
l
anc
es n
et
. At 31 Ju
ly 2
0
2
2 £1,66
4m of l
oa
ns p
ay
a
ble a
r
e of
f
s
et ag
ain
s
t lo
ans r
e
cei
v
able (
F
Y
2
0
21
: £
2,79
0
m
). T
he C
om
pa
ny h
as
l
ar
ge of
fs
et
t
ing l
oa
n ba
l
anc
e
s be
c
aus
e i
t us
es l
o
ans to r
e
duc
e it
s f
or
ei
gn cu
r
r
enc
y exp
os
ur
es a
nd s
ep
ar
ately mo
ni
tor ne
t ca
sh g
ene
r
ate
d
from tr
ading ac
tiv
itie
s.
Th
e C
omp
an
y’s sub
sid
iar
i
e
s ar
e l
ar
ge
ly h
eld a
cco
r
din
g to bu
sin
es
s l
in
es b
y th
e fo
ll
ow
in
g ho
ld
ing c
omp
an
ie
s
, w
hic
h ar
e inc
or
p
or
ated
in England
:
Smi
th
s Gr
ou
p Inter
n
ati
on
al Ho
ldi
ng
s L
imi
ted
Smi
th
s Dete
c
ti
on G
ro
up L
im
ite
d
Joh
n Cr
a
ne G
ro
up L
im
ite
d
Fl
ex-
T
ek Gr
oup L
i
mite
d
Smi
th
s Inter
co
nn
ec
t G
ro
up L
im
ite
d
SMITHS
GROUP PLC
COMP
ANY ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
176
Th
e pr
incip
al s
ubs
idi
ar
i
es a
nd th
eir c
ount
r
ie
s of i
nco
r
po
r
at
ion a
r
e:
England
Smi
th
s Dete
c
ti
on – W
at
for
d L
td
Joh
n Cr
a
ne UK L
i
mite
d
Other
Smi
th
s Dete
c
ti
on G
er
m
any G
mb
H (G
er
m
any
)
Smi
th
s Dete
c
ti
on (
A
s
ia
-P
ac
if
ic
) P
te Ltd (
S
ing
ap
or
e
)
Joh
n Cr
a
ne Mi
ddl
e E
as
t F
ZE (U
A
E
)
Joh
n Cr
a
ne T
ech
no
lo
g
y (
Tia
njin
) C
o L
imi
ted (
Chi
na
)
John Cran
e Saudi A
r
abia Ltd (S
audi A
r
abia
)
John Crane Canada Inc (Canada)
Unite
d Sta
tes
Smi
th
s Dete
c
ti
on
, Inc
.
John Crane, Inc.
Titeflex Corp
or
ation
Flexible T
echnologies, LLC.
T
utco, L
LC.
Royal Metal Pr
oduc
t
s, L
LC
Smiths Interconnect A
mer
icas
, Inc
Smiths Interconnect
, Inc
Kr
eisler Manufactur
ing Corp
Smi
th
s T
ubul
ar S
y
s
tem
s – L
ac
oni
a Inc
Of t
he c
omp
an
ie
s ab
ov
e, S
mit
hs G
r
oup In
ter
na
tio
nal H
ol
din
gs L
im
ite
d is 10
0
% o
w
ne
d dir
e
c
tly b
y th
e Co
mp
any. T
he ot
he
r
s ar
e 10
0
% ow
n
ed
thr
ou
gh inte
r
me
di
ate ho
ldi
ng c
omp
an
ie
s. S
ha
re
ho
ldi
ng
s ar
e of or
d
ina
r
y shar
e
s or c
om
mon s
to
ck
. A
ll o
f the a
bo
ve s
ub
sid
iar
i
e
s ope
r
ate i
n
their countr
y of incorpor
ation.
Se
e p
ag
es 18
0 to 18
8 for a c
omp
lete l
is
t of s
ub
sid
iar
y un
der
t
ak
ing
s.
4 Defe
r
red tax as
sets and liabiliti
es
Th
e C
omp
an
y ha
s r
eco
gn
is
ed t
he fo
ll
ow
i
ng d
efer
r
e
d t
ax a
s
se
t
s and l
ia
bil
i
tie
s:
Share-
based
pay
ment
£m
Retirement
benef
it
obligations
£m
Losse
s
carr
ied
for
war
d
£m
Other
£m
To
t
a
l
£m
At 31 J
uly 2
0
2
0
3
(8
8)
72
2
(
11
)
(Charge)/credit t
o income
statement
–
(
29)
17
1
(
11)
Cha
r
ge to e
q
ui
t
y
–
(6)
–
–
(6)
At 31 J
uly 2
0
21
3
(12
3
)
89
3
(2
8)
(Charge)/credit t
o income
statement
(2)
51
(
2
3)
(3)
23
Cha
r
ge to e
q
ui
t
y
(1)
6
–
–
5
At 31 J
uly 2
0
2
2
–
(6
6)
66
–
–
Th
e C
omp
an
y is p
ar
t of a UK t
a
x gr
oup i
ncl
udi
ng al
l i
t
s UK-b
a
se
d sub
si
dia
r
ie
s
. T
he C
omp
an
y ha
s r
ec
ogn
is
ed d
efe
r
r
ed t
ax a
s
s
et
s of £6
6m
(F
Y
2
0
21: £89
m) r
e
l
atin
g to r
ev
en
ue lo
s
s
es b
r
oug
ht for
w
a
r
d. T
h
e re
co
gni
ti
on of t
he
se a
s
s
et
s is d
ep
end
ent o
n the a
bil
i
t
y to r
e
co
ve
r the
m
aga
ins
t t
he un
w
in
d of oth
er t
ax p
os
it
ion
s an
d for
e
c
as
t UK t
a
xab
le p
r
of
it
s of t
he t
ax g
r
oup
. Th
e tr
e
atm
ent of th
e
se a
s
se
t
s is r
e
v
ie
we
d at e
ach
repor
ting
date.
A
s at 31 J
uly 2
0
2
2 t
he C
omp
an
y ha
s unr
e
co
gni
se
d def
er
r
e
d ta
x a
ss
et
s r
el
ating to l
os
s
es o
f £142m (F
Y
2
021
: £n
il
).
In Jun
e 2
0
21, it wa
s an
no
unce
d th
at f
ro
m 1 A
p
r
il 2
0
2
3
, th
er
e w
oul
d be a
n inc
r
ea
se i
n the r
ate of UK cor
por
ation t
a
x fr
o
m 1
9
% to 2
5%
.
Defe
r
r
ed t
a
x
, as at 31 Ju
ly 2
0
2
2 h
as b
ee
n ca
lcu
l
ate
d at the 2
5
% r
ate
.
5 T
r
ade and othe
r receiv
ables
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
A
mo
unt
s o
w
e
d by s
ub
si
dia
r
i
es
61
51
Other re
ceiv
able
s
1
1
62
52
6 T
r
ade and othe
r pay
ables
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
A
mo
unt
s o
w
e
d to su
bs
idi
ar
i
e
s
58
56
T
er
m lo
a
ns d
ue w
i
th
in on
e y
ea
r
504
–
Other credi
tors
15
21
Ac
cr
u
al
s and d
efe
r
r
ed i
nc
om
e
11
14
588
91
SMITHS
GROUP PLC
COMP
ANY ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
17
7
7 Borrow
ings and ne
t debt
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Ca
sh a
t ba
nk
10
20
Shor
t-term deposit
s
76
0
13
8
Ca
sh a
nd c
a
sh e
qu
i
v
al
ent
s
770
15
8
Le
as
e l
ia
bi
li
ti
e
s f
al
l
ing d
ue w
i
th
in o
ne y
e
ar
(1)
(1)
Le
as
e l
ia
bi
li
ti
e
s f
al
l
ing d
ue a
f
te
r on
e ye
ar
(5
)
(6)
T
er
m lo
a
ns f
a
ll
in
g du
e w
it
hi
n on
e ye
ar
(504)
(2
3)
T
er
m lo
a
ns f
a
ll
in
g du
e af
ter on
e ye
ar
(54
5)
(
1
,354)
Bor
ro
win
gs
(1,
0
5
5
)
(1,
3
8
4
)
Ne
t de
bt
(285)
(1,
2
2
6
)
T
er
m loans and lease liabili
ties
Th
e cu
r
r
enc
y and co
up
on
s for t
he ter
m loan
s ar
e di
sc
lo
se
d in n
ote 18 of the Gr
o
up ac
cou
nt
s.
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Le
s
s th
an o
ne y
e
ar
505
24
Bet
we
en o
ne a
nd t
wo y
e
ar
s
1
290
Bet
we
en t
wo a
nd f
i
v
e ye
ar
s
548
516
Gr
e
ater t
ha
n f
i
ve y
e
ar
s
1
554
Sm
it
hs G
r
oup p
lc te
r
m l
oa
ns a
nd l
ea
s
e l
iab
il
i
ti
es
1,
0
5
5
1,
3
8
4
Se
e th
e l
iqu
idi
t
y r
isk dis
c
los
ur
e
s in no
te 1
9 in th
e Gr
o
up acc
oun
t
s for in
for
m
ati
on on t
he c
a
sh an
d bo
r
r
o
w
ing f
a
cil
it
ie
s av
a
il
ab
le to th
e Gr
o
up.
Smi
th
s ha
s Rev
ol
v
ing C
re
di
t Fac
il
iti
e
s of $
8
0
0m mat
ur
i
ng on 1 N
ov
em
be
r 2
0
24
.
8 Der
iv
ati
ve
s
Th
e t
abl
e
s bel
o
w set o
ut t
he n
omi
nal a
mou
nt an
d fa
ir v
al
ue of d
er
i
v
at
i
ve c
ontr
ac
t
s he
ld b
y th
e Co
mp
any
:
At 31 J
u
ly 2
0
22
Co
n
tr
ac
t or u
n
de
r
ly
i
n
g
nominal amount
£m
Fair
value
Ass
ets
£m
Liabilities
£m
Net
£m
Foreign exchange
contrac
ts (not hedge accoun
ted)
59
3
9
(9)
–
Cr
os
s
-
cu
r
r
en
c
y s
w
a
ps (
f
air v
a
lu
e an
d ne
t inv
e
s
tm
ent h
e
dg
es
)
61
5
–
(4
0)
(
40)
Inte
re
s
t r
ate sw
aps (
fa
ir v
a
lu
e he
dg
e
s)
–
–
–
–
T
otal financial derivati
ves
1,
2
0
8
9
(
49)
(4
0)
Balance sheet entries
Non-cur
rent
–
(20)
(20)
Curr
ent
9
(2
9)
(20)
T
otal financial derivati
ves
9
(
49)
(4
0)
At 3
1 Ju
ly 2
0
2
1
Contrac
t or
underlying
nominal amount
£m
Fair value
A
sset
s
£m
Liabilitie
s
£m
Net
£m
Foreign exchange
contrac
ts (not hedge accoun
ted)
325
2
(2)
–
Cur
ren
c
y s
w
a
ps (
f
ai
r v
alu
e an
d ne
t in
ve
s
tm
en
t he
dg
e
s)
539
72
–
72
Inte
re
s
t r
ate sw
aps (
fa
ir v
a
lu
e he
dg
e
s)
10
8
3
–
3
T
otal financial derivati
ves
972
77
(2)
75
Balance sheet entries
Non-cur
rent
75
–
75
Curr
ent
2
(2)
–
T
otal financial derivati
ves
77
(2)
75
Der
iv
at
i
ve
s
, inc
lu
din
g for
w
a
rd e
xch
ang
e co
ntr
a
c
t
s
, cur
ren
c
y s
w
ap
s
, inter
e
s
t r
ate i
ns
tr
ument
s an
d em
be
dd
ed d
er
i
v
at
i
ve
s ar
e L
ev
el 2 f
ai
r
v
alu
e ins
t
r
ume
nt
s an
d ar
e v
al
ue
d at the n
et pr
e
s
ent v
a
lue of t
he f
u
tur
e c
as
h-
fl
ow
s c
a
lcu
l
ated u
sin
g ma
r
ket dat
a at th
e b
al
an
ce sh
eet d
ate
(
pr
i
nci
pa
lly e
xcha
ng
e r
ate
s an
d y
ie
ld cu
r
ve
s
).
Th
e de
bi
t to the i
nco
me s
t
atem
ent ar
ising f
r
om c
ha
nge i
n f
air v
al
ue in t
he y
ea
r w
as £
2
8m (F
Y
2
021
: £5
m
).
9 Prov
isions f
or liabilit
ies and cha
rges
At
31 Ju
l
y 2
0
21
£m
Charged
against prof
it
£m
Utilisation
£m
At
31 Ju
ly 2
0
2
2
£m
Disposal
s
2
–
–
2
Th
e cl
os
ing d
isp
os
a
l pr
o
v
isi
on r
el
ate
s to w
a
r
r
a
ntie
s an
d oth
er ob
l
iga
tio
ns in r
e
sp
e
c
t of a pa
s
t dis
po
s
al an
d is e
xp
ec
te
d to b
e uti
li
s
ed w
i
thin
the n
ex
t f
i
v
e ye
ar
s.
SMITHS
GROUP PLC
COMP
ANY ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
17
8
1
0 Post-retirement benef
it
s
Th
e C
omp
an
y is t
he pr
incip
al e
mpl
oy
er f
or th
e t
w
o m
ajo
r def
in
ed b
en
ef
it p
l
ans i
n th
e UK
. T
h
e Co
mp
an
y is ac
cou
ntin
g for a
ll t
he UK d
ef
ine
d
benefit schemes (funded and
unfunded) and vir
tually all o
f the post
-retirement healt
hcar
e schemes.
The retir
ement benefit ass
ets and liabilitie
s compris
e:
31 Ju
ly 2
0
2
2
£m
31 Ju
l
y 2
0
21
£m
Mar
ket va
lu
e of s
ch
em
e as
s
et
s
3
,0
67
4
,1
0
4
Pr
e
s
ent v
alue o
f fu
nd
e
d sc
he
me l
ia
bi
li
t
ie
s
(2,
738)
(3,55
8)
Surp
lus restr
ic
tion
(20)
–
Sur
plus
309
546
Unf
un
de
d p
en
si
on p
l
an
s
(4
3)
(54)
Post-retirement healthcar
e
(4)
(4)
Pre
sent value of
unfunded obligations
(
47
)
(5
8)
Net pension
ass
et
2
62
488
Retirement benefit assets
309
546
Retirement benefit liabilities
(
47
)
(5
8)
Net pension
ass
et
2
62
488
Se
e th
e di
sc
los
ur
e
s for U
K sc
he
me
s in n
ote 8 to the c
on
so
l
idate
d ac
cou
nt
s for t
he c
ir
cum
s
ta
nce
s of t
he ma
jo
r sc
hem
e
s, r
isk ma
nag
em
ent
,
pr
in
cip
al a
s
sum
pti
on
s, a
s
s
et
s an
d li
abi
li
tie
s a
nd th
e f
und
ing p
os
it
ion o
f the t
wo m
ajo
r sc
he
me
s.
1
1
Share c
api
tal an
d re
ser
ves
Share capital
Nu
mb
e
r of s
ha
r
e
s
Issued
capital
£m
Consideration
£m
Or
di
n
ar
y sh
ar
e
s of 3
7
.5p e
a
ch
T
ota
l sh
ar
e c
ap
i
ta
l at 31 Ju
ly 2
0
2
0
3
9
6
,
2
11,
1
8
0
149
Is
s
ue of n
e
w eq
ui
t
y s
ha
r
es – e
xer
c
is
e of s
ha
re o
pt
io
ns
16
5
,9
3
4
–
2
T
ota
l sh
ar
e c
ap
i
ta
l at 31 Ju
ly 2
0
2
1
39
6,377
,
1
14
149
Shares purchased under a
buy
back programme
(34,
1
5
2,897
)
(13
)
Is
s
ue of n
e
w eq
ui
t
y s
ha
r
es – e
xer
c
is
e of s
ha
re o
pt
io
ns
131,942
–
2
T
ot
al s
ha
r
e ca
p
it
a
l at 31 J
uly 2
0
2
2
362,356,
15
9
13
6
At 31 Ju
ly 2
0
2
2
, al
l of the i
s
su
ed s
har
e c
ap
it
al w
a
s in f
r
ee i
s
sue
. A
ll i
ss
ue
d sh
ar
e
s ar
e fu
ll
y pa
id. S
e
e no
te 9 to the c
on
so
li
date
d ac
cou
nt
s
for in
for
m
ati
on ab
ou
t sh
ar
e sc
he
me
s
, inc
lu
din
g tota
l sha
r
es u
nde
r opt
io
ns an
d op
tio
ns e
xer
cis
a
ble a
t the b
al
a
nce s
he
et da
te. Du
r
in
g the
ye
ar
, the C
omp
an
y r
ec
ei
ve
d £
3
m (F
Y
2
0
21: £2m
) on t
he i
s
sue o
f sha
re
s in r
e
sp
e
c
t of the e
xer
ci
se o
f opt
ion
s aw
ard
ed un
de
r v
ar
i
ou
s sha
re
option schemes.
Smiths Industrie
s Employee Benefit T
r
us
t
Th
e r
et
ain
ed e
ar
ni
ng
s inc
lud
e th
e pur
ch
as
e of S
mi
ths G
r
oup p
lc sh
ar
e
s by t
he S
mi
ths I
ndu
s
tr
ie
s E
mp
lo
ye
e Be
nef
i
t T
ru
s
t, an
d th
e is
su
e of
the
s
e sh
ar
es u
po
n the e
xer
ci
se o
f sha
re o
pti
on
s. T
h
e co
nsi
de
r
at
ion p
ai
d w
as £16m (F
Y
2
0
21
: £1
6m
) an
d £
3m (
F
Y
2
0
21
: £
2m
) w
a
s r
ece
i
ve
d,
£
2m f
r
om th
e is
s
ue of n
ew s
har
e
s (
F
Y
2
0
21
: £
2m
) an
d £1
m (F
Y
2
0
21: £nil
) d
ir
ec
t
ly to th
e Em
plo
y
ee B
en
efi
t T
r
us
t
. At 31 Ju
ly 2
0
2
2 t
he T
r
us
t he
ld
6
1
8,
6
62 (
F
Y
2
0
21
: 32
6,
3
6
4) o
r
dina
r
y sha
re
s
.
Distribut
able profits
Th
e C
omp
an
y’s pr
of
it a
nd lo
s
s r
es
er
v
e of £
2
,
2
0
5m (
F
Y
2
0
21
: £1
,6
2
8m
) in
cl
ude
s £1,3
2
8m (
F
Y
2
0
21
: £6
3
8m
) of d
is
tr
i
bu
ta
ble p
r
of
it
s
. S
ee n
ote 26
in th
e Gr
ou
p acco
unt
s f
or a di
sc
us
si
on of c
a
pi
ta
l man
ag
eme
nt an
d the f
a
c
tor
s w
h
ich t
he B
oa
r
d con
si
de
r
s w
he
n pr
op
os
ing d
i
v
ide
nd
s.
Other res
er
ve
s
O
the
r re
s
er
v
es a
r
os
e fr
o
m th
e ca
nce
ll
a
tio
n of th
e sha
r
e pr
emi
um ar
i
sin
g f
ro
m an e
qui
t
y
-f
un
de
d ac
qui
si
tio
n in th
e ye
ar en
de
d 3
0 Ju
ly 198
8
.
Dif
ferential bet
ween consolidated and parent Comp
any net asset
s
Th
e Gr
o
up's con
so
li
date
d b
al
an
ce sh
eet s
ho
w
s ne
t as
s
et
s th
at ar
e £185
m lo
we
r (F
Y
20
21
: £96
m high
er
) t
han t
he ne
t as
s
et
s sh
ow
n o
n th
e
Pa
r
ent C
omp
an
y
's bal
a
nce s
he
et
. T
his d
ef
ici
t pr
incip
al
ly ar
o
se i
n 2
0
0
7 w
he
n the G
r
oup r
et
ur
n
ed £
2
.
1
bn of c
ap
it
al to s
har
e
hol
de
r
s
, cr
e
atin
g
a net a
s
set d
ef
ici
t of £1.
9bn. E
a
r
nin
gs r
et
ai
ne
d w
ith
in th
e Gr
ou
p ha
ve s
ubs
e
que
ntly r
e
duc
ed t
his d
ef
ici
t
. T
he c
ur
r
ent y
ea
r r
ev
er
s
a
l ha
s ar
i
se
n
fr
om t
he d
i
v
ide
nd p
ai
d to the C
om
pa
ny b
y Sm
it
hs Gr
o
up Inte
r
nat
ion
al H
ol
din
gs L
td fol
lo
w
in
g th
e s
ale of t
he M
edi
c
al bu
sin
e
ss
.
1
2 Contingent l
iabil
itie
s
Th
e C
omp
an
y ha
s pr
o
v
ide
d gu
ar
antee
s and a
r
r
a
ng
ed l
et
ter of c
r
edi
t f
ac
il
iti
e
s to sup
po
r
t the Gr
o
up’
s pe
ns
ion p
l
an
s. T
h
e cu
r
r
ent am
ount
out
sta
nd
ing u
nde
r let
ter
s of cr
ed
it i
s £
5
6m (
F
Y
2
0
21
: £5
4m
). T
he C
om
pa
ny ha
s gu
ar
a
ntee
d th
e US
$
8
0
0
m r
ev
ol
v
ing c
re
di
t f
ac
ili
t
y av
ail
a
ble to
a subsidiar
y
.
1
3 Post Balance Sh
eet Even
t
Det
ail
s of the p
r
opo
s
ed f
in
al di
v
i
den
d an
no
unce
d si
nce t
he en
d of th
e r
ep
or
tin
g per
iod ar
e gi
v
en i
n note 2
5 to th
e Gr
ou
p con
s
ol
id
ated
financial st
atements.
SMITHS
GROUP PLC
COMP
ANY ACCOUNTS
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
17
9
A fu
ll l
is
t of th
e Gr
ou
p’
s re
l
ated un
de
r
tak
ing
s as at 31 Jul
y 2
0
2
2 is p
ro
v
id
ed b
el
ow. T
he e
ntit
ie
s ar
e gr
oup
e
d by t
he co
untr
y in w
hi
ch th
ey
ar
e inco
r
p
or
ate
d an
d det
ail
s of their r
e
gis
ter
e
d of
f
ic
e ad
dr
es
s
, cl
ass
e
s of sh
ar
es a
nd o
w
ne
r
shi
p is di
sc
los
e
d. Rel
ate
d un
der
ta
kin
gs
incl
ud
e sub
sidi
ar
ie
s
, a
ss
o
ciate
d und
er
ta
kin
gs
, jo
int v
entur
e
s an
d as
s
oc
iate
s.
Name
Secur
it
y
Direct
(%)
T
otal
(%)
UNIT
ED KINGD
OM
1
1-
1
2 St Ja
me
s’s Squ
ar
e, L
o
nd
o
n, S
W
1Y 4L
B
A
ir L
o
g L
imi
te
d
Ordina
r
y
10
0
EI
S Gr
o
up P
lc
Ordina
r
y
10
0
10
0
F
lex-T
ek Gr
oup L
imite
d
Ordinar
y
10
0
Fl
ightsp
are
s Limited
Ordinar
y
10
0
10
0
Fr
a
nci
s S
ha
w A
n
d Co
mp
an
y (
Ma
nc
he
s
ter
) L
i
mi
te
d
Ordina
r
y
10
0
Fr
a
nci
s S
ha
w P
LC
37
% 2
nd P
r
ef O
r
di
na
r
y; 5.
2
5
% Cum P
r
ef;
Dif;
Ordin
ar
y
10
0
Gr
a
s
eb
y L
im
it
ed
Ordina
r
y
10
0
10
0
Roo
f Uni
t
s (G
r
ou
p) L
i
mi
ted
Or
dinar
y
10
0
10
0
S.I. Pension T
r
ustees Limited
Or
dinar
y
10
0
10
0
SI Proper
ties Limited
Or
dinar
y
10
0
10
0
SITI
1
Lim
it
ed
Common
10
0
Smiths Aero
space Component
s T
yseley L
imited
Ordinar
y
10
0
10
0
Smiths Aer
ospace Glouce
ster Limited
Ordina
r
y; Or
dinar
y A
10
0
Smiths Finan
ce Limited
Or
dinar
y; RDM
10
0
Sm
it
hs G
r
oup F
inan
ce E
U L
im
ite
d
Ordinar
y
10
0
Sm
it
hs G
r
oup F
inan
ce U
S L
im
ite
d
Ordin
ar
y
10
0
Sm
it
hs G
r
oup I
nn
ov
atio
n L
imi
te
d
Ordina
r
y
10
0
Smiths Group I
nternational
Holdings Limited
Or
dinar
y
10
0
10
0
Smiths Industr
ie
s Limited
7
% No
n Cum P
r
ef; Or
di
na
r
y
10
0
10
0
Smiths Nominee
s Limited
Ordinar
y
10
0
10
0
Smiths Wolver
hampton Limited
Ordina
r
y
10
0
Sovos Limit
ed
Ordina
r
y
10
0
T
I Co
r
p
or
ate Se
r
v
ice
s L
i
mi
ted
Ordinar
y
10
0
10
0
T
I Gr
o
up L
im
ite
d
Ordina
r
y
10
0
10
0
T
igr
up No. 7 L
i
mi
te
d
O
rdinar
y
10
0
10
0
T
igr
up No. 14 L
im
ite
d
Ordinar
y
10
0
X
DG L
imite
d
Ordinar
y
10
0
10
0
X
DG S
e
r
v
ic
es L
i
mi
te
d
Ordin
ar
y
99
29 Dunsinane Avenue, Dundee, DD2
3QF
Flex
ible Duc
ting Limited
O
rdinar
y
10
0
T
r
ak Mi
cr
o
w
a
ve L
imite
d
Or
dinar
y
10
0
5
4 Ha
g
le
y Ro
ad
, Ed
g
ba
s
to
n
, Bir
min
gh
am
, B16 8PE
C
V
E T
r
us
te
e L
im
it
ed
Or
dinar
y
10
0
10
0
Smiths
Pensions
Limited
Ordinar
y
99
10
0
T
I Pen
s
io
n T
r
us
te
e L
imi
te
d
Limited B
y Guar
antee
10
0
Aberc
anaid, Mer
thyr T
ydfil, Mid Glamorgan, CF48 1UX
A
mn
ite
c Ho
s
e L
im
ite
d
Ordina
r
y
10
0
A
mni
tec L
imi
te
d
Ordina
r
y
10
0
Br
oo
kly
n H
o
us
e, 4
4 Bro
o
k Str
e
et
, S
he
ps
he
d
, L
ou
gh
bo
r
ou
gh
, L
E12 9RG
Ga
st
ite Sy
s
tem
s L
imi
ted
Ordina
r
y
10
0
Buckingham House, 36
1
-36
6 Buckingham Avenue,
Slough, Berk
shire, SL
1
4LU
Fl
ex
ibox In
ter
nat
ion
al L
imi
ted
Ordinar
y
10
0
John Crane Group Limit
ed
Ordinar
y
10
0
Jo
hn Cr
ane In
v
es
t
me
nt
s L
im
it
ed
Or
dinar
y
10
0
Jo
hn Cr
ane U
K L
imi
te
d
Or
dinar
y
10
0
Pr
o
je
c
t S
ug
ar L
im
ite
d
Or
dinar
y
10
0
Smiths Busines
s Information Ser
v
ices L
imited
Or
dinar
y
10
0
Centur
y House, Mayland
s Avenue
, Hemel Hempstead, Hert
fordshire, HP2 7DE
Sm
it
hs D
ete
c
ti
on G
r
ou
p L
imi
te
d
Ordina
r
y
10
0
Smiths Detection Inves
tments Limited
Or
dinar
y
10
0
Smiths
Detection
Limited
Ordinar
y
10
0
10
0
Smiths
Detectio
n-Watford Lim
ited
Or
dinar
y
10
0
Smiths Heimann L
imited
Ordina
r
y
10
0
10
0
No 1
E
xchange, Market
Street, Aberde
en, Scotland
John Crane Ass
et Managemen
t Solutions Limited
Or
dinar
y
10
0
SUBSIDIA
RY UNDERT
AKING
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
18
0
Name
Secur
it
y
Direct
(%)
T
otal
(%)
Unit 1
30 Centennial Park
, Elstre
e, Hert
fords
hire, WD6 3T
J
Hyper
t
ac Limi
ted
O
rdinar
y
10
0
Smiths Industr
ie
s Industr
ial Group Limited
Ordin
ar
y
10
0
Smiths Interconnect Group Limited
Ordinar
y
10
0
ANGOL
A
Rue Kw
a
m
me N
kr
u
ma
h
, T
or
r
e
s Im
po
r-
A
fr
i
c
a, 3 A
nda
r
, Ap
t A
, Lua
n
da
Jo
hn Cr
ane (
A
ng
o
l
a) P
r
e
s
t
ac
a
o De S
e
r
vi
ce
s L
td
Or
dinar
y
10
0
ARGENTI
NA
Av
. Leandro N.
Alem 1
1
10,
1
3 Floor
,
Baker Mack
enzie Office, Buenos Aires
John Crane Argentina SA
Common
10
0
T
I Gr
o
up A
uto
mo
ti
v
e Sy
s
te
ms (
A
r
g
ent
in
a) S
A
Ordin
ar
y
10
0
AUSTRALI
A
5
49 – 551, So
me
r
vi
ll
e Ro
ad
, S
un
sh
in
e, M
el
b
ou
r
ne
, V
I
C 30
2
0
Flexibox
Pt
y Limited
Ordinar
y
10
0
Jo
hn Cr
ane A
us
t
r
al
i
a P
t
y Li
mi
te
d
Or
dinar
y
10
0
Bo
t
any G
r
ov
e E
s
t
ate U
ni
t 5
, 14
A Ba
ker S
tr
e
et
, B
ot
a
ny, NS
W 2
019
Sm
it
hs D
ete
c
ti
on (
A
us
tr
ali
a
) P
t
y Ltd
Ordina
r
y
10
0
A
ZERBA
I
JAN REP
UBLIC
32
, D
os
t
lu
q Str
e
et
, S
a
ly
a
n Hi
gh
w
ay P
O B
ox A
Z1023
, B
ak
u
Jo
hn Cr
ane B
ak
u L
LC
Or
dinar
y
10
0
BELGIUM
Gl
a
s
s
tr
a
a
t 37
, A
n
t
we
r
p
en
, 2170
Jo
hn Cr
ane B
el
gi
um N
V
Ordinar
y
10
0
BR
A
ZIL
Ru
a T
ab
ap
o
ã, 4
22
, 10t
h f
lo
or
, co
nj
. 101, Ita
im B
ib
i, 0
45
3
3
-
001
Smiths Detection Br
asil Comér
ico De Equipamentos
Ltda
Common
10
0
In
du
s
tr
i
al D
is
t
r
ic
t o
f T
he C
it
y of Ri
o Cl
aro
, St
at
e of S
ã
o P
au
lo
,
AV
. Br
as
il N
um
b
er 4
.70
0, CEP 13
5
05
-6
0
0
Sm
it
hs B
r
a
sil L
td
a
Ordinar
y
10
0
CANADA
4
2
3, G
r
ee
n No
r
th Roa
d
, Sto
n
ey C
re
ek
, O
nt
a
r
io
, L
8
E 3
A
1
Jo
hn Cr
ane C
an
ad
a In
c
Common
100
37
0
0
, Sto
ck E
xcha
n
ge Tower
, P
.O. B
ox 2
4
2, 8
0
0 P
l
ac
e V
ic
tor
i
a,
Mo
nt
re
al
, P
Q, H
4
Z 1E9
Smiths Detection Mon
treal Inc.
C
l
a
ss A S
h
ar
e
s; Cl
a
s
s B Sh
ar
e
s
10
0
4
6
10, Ea
s
tg
a
te P
ar
k
wa
y, Uni
t 3
, Mi
s
si
s
s
au
ga
, O
nt
a
r
io
, L
4
W 3
W6
Flexible
T
ech
nologies
(Canada)
Ltd.
Or
dinar
y
10
0
16
7
71, Sa
in
te Ma
r
i
e Rd
, K
ir
k
l
an
d
, Qu
eb
e
c
, H9
H 5H
3
Smiths Interconnect Canada Inc
Common Shares
10
0
CHILE
Amer
ico V
espucio 254
2, Complejo Empres
arial El Cor
tijo, Conchali, Santiago
Jo
hn Cr
ane Ch
il
e S
A
Ordinar
y
10
0
CHINA
No. 1, L
a
ne 6
5
, Hu
an
lo
ng R
oa
d
, Pu
d
on
g Ne
w D
is
t
r
ic
t
, S
ha
ng
h
ai
Smiths (Shan
ghai) Management Co., Ltd
Ordina
r
y
10
0
No. 7
, Factor
y Building, Maqiao Industrial Squa
re, Changshu Economic
Development Zone,
Changshu, Jiangsu
21
553
6
Changshu Flex-
T
ek Ther
mal Fluid Sys
tems Manufac
turer Co. Ltd
Ordinar
y
10
0
No.9
, No. 1, Ha
it
a
i Hu
ake Ro
a
d
, Hu
ay
u
an I
nd
u
st
r
i
al D
is
t
r
ic
t (O
u
t
si
d
e Th
e R
in
g)
,
Binhai Hi-
T
ech
, Industrial Par
k, Tianjin
Jo
hn Cr
ane T
e
chn
o
lo
g
y (
Ti
anj
in
) C
o L
imi
te
d
Ordin
ar
y
10
0
No. 14 Un
it
, N
o. 7
8
, X
in
gL
i
n Ro
ad
, S
uzh
o
u In
du
s
tr
i
al P
a
r
k
, Su
zh
ou 2
150
26
A
nt
ar
e
s A
d
v
an
ce
d T
es
t Techn
ol
o
gie
s (
S
uz
ho
u
) Co
. Lt
d
O
rdinar
y
10
0
No. 1
20, Sanjiang
Avenue, Economic
Development Zone, M
ianyang
,
Sichuan Province
Huafeng Smiths Int
erconnec
t (Sichuan
) Co., Ltd
Ordinar
y
60
Roo
m 9
2
3B
, No 5
5
, X
il
i Ro
a
d, S
ha
ng
h
ai
, (Ch
in
a) P
i
lo
t Fre
e T
r
a
de Z
on
e
SM
O De
tec
t
io
n Eq
uip
me
nt (
S
ha
ng
ha
i) C
o.
, L
td
Or
dinar
y
10
0
Roo
m 166
8
, No
. 14F F
lo
or 3 D
a
to
ng B
ui
ld
in
g
, Hu
an
gh
e Av
en
ue
,
Nankai Distric
t, Tianjin
Jo
hn Cr
ane Ch
in
a Co L
imite
d
Or
dinar
y
10
0
SUBSIDI
A
RY UNDERT
AK
ING
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
181
Name
Secur
it
y
Direct
(%)
T
otal
(%)
COLOMBI
A
C
al
le 4
6
A N
o 8
2-5
4 Int 14
, P
ar
qu
e Em
p
re
s
a
r
ia
l S
an C
a
ye
t
an
o, B
o
go
t
a
John Crane Colombia SA
O
rdinar
y
10
0
COST
A R
ICA
3
3r
d S
t. N
um
be
r 7
7
7 B
ar
r
i
o Fr
a
nc
is
c
o Pe
r
al
t
a, C
e
nt
r
al A
ve
nu
e & 8
th
, S
a
n Jo
se
Smiths Interconnect So
ciedad Ano
nima
Ordinar
y
10
0
CZECH REPUBLIC
Ja
na S
ig
mu
nd
a 7
8
, Lu
ti
n
, 78
349
Jo
hn Cr
ane A
.S
.
O
rdinar
y
10
0
DOMINIC
AN REP
UBL
IC
C
al
le E
l Rec
o
do
, #
2 Be
ll
a V
ist
a
, S
a
nt
a D
om
in
go
John Crane Dominic
ana S
A
Or
dinar
y
10
0
EGYP
T
139
, Mo
g
am
aa E
l Ma
s
a
ne
a St
re
et
, E
l A
mi
r
ey
a
, C
ai
ro
Jo
hn Cr
ane E
g
y
pt L
lc
Ordinar
y
10
0
Jo
hn Cr
ane E
g
y
pt S
e
al
in
g Sy
s
te
ms L
l
c
Ordina
r
y
99
Nil
e Ci
t
y Towe
r
s
, No
r
t
h T
ow
er, 22n
d Fl
oo
r
, Ra
ml
et B
ou
l
a
q, N
il
e C
ou
r
ni
ch
, C
a
ir
o
Detectio
n T
echnologies
Egypt
Qu
otas
10
0
FINL
AND
P
O Box 10, P
u
na
si
ll
anti
e 15, Mu
ur
ame, 4
09
5
0
John Crane S
afematic Oy
Ordinar
y
10
0
FR
A
NCE
22, Avenue Maurice
Chevalier
, 7783
3 Ozoir-La-
Ferrier
e, Paris
T
ite
fl
ex E
ur
op
e S
.
A
.S
.
Or
dinar
y
10
0
31
Rue Isidore Maille, Saint-Aubin-Les-
Elbeuf, 7
64
1
0
Hy
pe
rta
c
S
.A.
Ordinar
y
10
0
36 R
ue C
h
ar
l
e
s He
ll
er
, V
i
tr
y Sur S
e
in
e, F
-94
4
0
0
Sm
it
hs D
ete
c
ti
on Fr
anc
e S.
A
.
S
.
Share
s
10
0
1
14, Ru
e Ju
le
s F
er
r
y, B.p.
3
5
, De
v
il
le
-
L
e
s
-Ro
ue
n
, 7625
0
Jo
hn Cr
ane Fr
ance S
.
A
.
S.
Ordinar
y
10
0
T I S A (Fr
anc
e)
O
rdinar
y
10
0
GE
RMANY
A
m Zi
r
ku
s 2
, Be
r
l
in
, 101
1
7
John Crane Filtr
ation T
echnologies GmbH
Ordina
r
y
10
0
Ge
we
r
b
es
t
r
a
ße 15 a, G
r
a
be
n
, 8
6
8
3
6
Gasti
te Systems Deuts
chlan
d GmbH
Ordinar
y
10
0
Im Herzen 4, Wiesbaden
, 65205
Smiths Detection GmbH
Shar
es
10
0
Smiths Detection Ger
many GmbH
Or
dinar
y
10
0
Ne
ck
ar
we
g 3
, Vell
m
ar
, 3
4
2
46
Her
kules Holding GmbH
Or
dinar
y
10
0
Seeb
ach GmbH
Or
dinar
y
10
0
Ree
ps
c
hl
a
g
er St
r
., 10B
, Lu
be
c
k
, 2
3
55
6
Flex
schlauch Pr
oduktions GmbH
Shar
es
10
0
T
ol
ze
r St
r
a
s
se
, 15 82
0
31, Gr
un
w
a
ld
Zamor KG
Ordinar
y
48
Ulrichsber
ger Strass
e 1
7
, Deggendor
f, 9
4
4
69
Hy
per
tac GmbH
Or
dinar
y
10
0
Werner–V
on–Siemens – Str
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1
John Crane GmbH
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10
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GREECE
3 Str
atig
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u T
ob
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tr
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t
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ni
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pa
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it
y Of A
gi
a P
ar
a
s
kev
i
, At
he
ns
, 15
3 4
2
Jo
hn Cr
ane H
el
l
as – E
n
gin
e
er
ed S
e
a
li
ng S
y
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tem
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10
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ve
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t, L
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r
ie
, St P
et
er P
or
t, G
Y1 1EJ
Smiths Group Insur
ance L
imited
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10
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H
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O
UP P
L
C A
NN
U
A
L R
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O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
18
2
Name
Secur
it
y
Direct
(%)
T
otal
(%)
HONG KONG
4
0
0
8
-
4
0
0
9, 40
/
F
, One P
a
ci
f
ic P
l
a
ce, 8
8 Que
en
s
w
a
y
Sm
it
hs In
ter
co
nn
e
c
t Gr
o
up (
HK
) L
imi
te
d
Ordinar
y
10
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ter
co
nn
e
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o L
imi
te
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10
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Smiths Detection Hong
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y
a
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Jo
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ar
y K
f
t
Ordin
ar
y
10
0
INDIA
D
-
196 Okh
l
a In
du
s
tr
i
al A
r
e
a, P
h
as
e
-1
, Ne
w De
hl
i
, 1
100
2
0
Pl
ent
y Ind
ia L
i
mi
ted
Ordinar
y Shares
10
0
No 1
1, 1
s
t Ph
a
se
, Pe
e
ny
a
, In
du
s
tr
i
al A
rea
, B
an
g
al
or
e, 5
6
0
0
5
8
Jo
hn Cr
ane S
e
al
in
g Sy
s
te
ms I
nd
ia P
r
i
v
at
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imi
te
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Or
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Smiths Interconnect India Pri
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tr
i
al A
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6
1
2
0
3
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T
S T
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ef
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x Ind
ia P
v
t L
td
Or
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Shir
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io
ns I
nd
ia P
v
t L
td
Ordina
r
y
10
0
Var
d
hm
an C
ro
w
n Ma
l
l
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o. 3
0
0 3
r
d Fl
o
or
, S
ec
t
or 19 D
w
ar
k
a
, Ne
w D
el
hi 1
100
7
5
Sm
it
hs D
ete
c
ti
on S
y
s
tem
s P
r
i
v
ate L
i
mi
te
d
C
l
a
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s A Equ
it
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ar
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s;
Cl
a
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s B Equ
it
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ar
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s
10
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INDONE
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Cilandak Commercial Es
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2560
PT John Crane Indonesia
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99
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y, Dub
l
in
, D
0
2
X
5
76
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ane P
en
si
on T
r
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st
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Ir
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d) L
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Or
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10
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De
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k
Sm
it
hs D
ete
c
ti
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el
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d L
im
it
ed
Or
d
in
ar
y; O
r
di
nar
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d
in
ar
y D; S
er
ies C
10
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T5
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y
pe
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tac S
p
A
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10
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V
ia G
io
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to 3
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ug
gi
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8
35
Jo
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ane I
t
al
ia S
p
A
Ordinar
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10
0
Smiths Detection Ital
ia srl
Q
u
ot
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ue o
f Sh
ar
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10
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it
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r
oup I
t
al
ia S
r
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10
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JAP
AN
1
-
1
-
1 Uchisaiwaich
o, Chiyoda-
ku, T
o
k
yo
Sm
it
hs D
ete
c
ti
on J
ap
an G
k
Cash Contr
ibution
10
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222
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ma Ritto City, Ritto-Shi, Shiga-Ken
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hn Cr
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nc
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70
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AZ
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00
John Crane K
azak
hst
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BL
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Westgate
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Seodaemun-Gu, Seoul
Jo
hn Cr
ane K
or
e
a Co L
td
Ordinar
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10
0
MALAY
SIA
20
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, Ja
l
a
n T
un Ra
z
ak
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ui
te 13.
0
3, 13
th F
l
oo
r
, Men
a
r
a T
an & Tan, Ku
a
l
a Lu
mp
ur, 50
4
0
0
F
lex
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ble D
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, 6
0
0
0
0 Ku
al
a L
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P
K
L
Jo
hn Cr
ane M
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a
y
sia S
d
n Bh
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10
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Smiths Detection Mala
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I
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H
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UP P
L
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NN
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A
L R
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O
R
T F
Y2
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2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
18
3
Name
Secur
it
y
Direct
(%)
T
otal
(%)
ME
X
ICO
6
79
, Poniente
1
52, Vallejo Delegacion Azcapot
zalco, Mexico
Cit
y,
230
0
Ind
us
t
r
ia
s Jo
hn C
r
an
e Me
x
ic
o S.
A
. de C.V
.
S
er
ies A; Ser
ies B
10
0
Av. Pr
im
er
o D
e Ma
yo L
o
te 3 E
di
fi
ci
o 1B, Pr
ol
o
gi
s P
ar
k
, Re
y
n
os
a
, 8
8
7
8
0
T
utco D
e Me
x
ic
o SR
L de C
V
Ordinar
y
10
0
Carr
etera Ciudad Vic
toria Matamoros, Km
.
1
73+60
0, Solonia San Fernando Centro,
T
amaulipas, San Fernando, CP 87
600
Jo
hn Cr
ane S
o
ci
ed
ad D
e Re
sp
o
ns
ibi
l
id
ad L
i
mi
ta
da D
e C
ap
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a
l Var
i
ab
le
Or
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10
0
Car
retera Libre A
ntiguo Camino Tijuana 20221-B,
Fideicomis
o el Florido, Tijuana,
Ba
ja C
a
l
if
or
n
i
a, 2
2
2
3
4
Sm
it
hs In
ter
co
nn
e
c
t Me
xi
co S
. de R
l de C.v.
Equ
it
y Quo
ta
s
10
0
Pa
s
e
o De L
a Refo
r
ma 5
0
5
, C
ol
, C
u
au
hte
mo
c
, 6
5
0
0, C
iu
d
ad D
e Me
x
ic
o
Sm
it
hs D
ete
c
ti
on M
ex
ic
o S
. de R
l de C.v.
Par
tes So
ciales
10
0
NE
THERL
AND
S
A
br
aha
m v
an St
ol
k
w
e
g 1
18, Rot
t
er
d
am
, 3
0
4
1 JA
A
mn
ite
c B
V
O
rdinar
y
10
0
Be
r
ge
n 9 – 17
, B
a
re
nd
r
ec
ht
, Z
ui
d, 2
9
9
3
L
R
Jo
hn Cr
ane H
ol
l
an
d B
V
Or
dinar
y
10
0
Smiths Detection Benelux BV
O
rdinar
y
10
0
Buckingham House, 36
1-366 Buckingham Avenue,
Slough, Berk
shire,
SL
1 4
LU, E
ng
l
an
d
Smiths Group Hold
ings Netherlands BV
Ordin
ar
y
10
0
Hy
d
ro
gr
aaf 2
5, P
O B
ox 4
42
, 69
0
0 A
k Z
ev
en
aa
r
, Du
i
ve
n, 69
21 R
S
Indufil BV
Ordina
r
y
10
0
NE
W ZE
A
L
A
ND
De
lo
it
t
e, L
ev
el 18
, 8
0 Qu
e
en St
re
e
t
, Au
ck
l
an
d 1010
Sm
it
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ete
c
ti
on N
e
w Zea
l
an
d L
im
ite
d
O
rdinar
y
10
0
PERU
Av. Gui
ll
er
m
o D
an
s
ey 212
4
, Ur
b
a
ni
z
ac
io
n In
du
s
tr
i
al C
o
nd
e, L
i
ma
Jo
hn Cr
ane P
er
u S
a
c
Common Shares
10
0
POL
AND
1327, ul. B
ie
l
s
ka
, P
ol
a
nd
, 4
3-
374 Bu
c
zko
w
i
Jo
hn Cr
ane P
ol
a
nd S
p Z O.O.
Ordin
ar
y
10
0
PUERTO
RICO
65
4 Pl
az
a
, S
ui
te #
9
3
3
, 6
5
4 M
un
oz R
i
ve
r
a Av
e, S
a
n Ju
an
, 0
0
918
Jo
hn Cr
ane C
ar
ibe L
td
C
ommon Shares
10
0
RUSSI
AN FEDER
ATION
Roo
m 5
01, Fl
oo
r 5, b
l
d.
1, 5-1
0
4 O
c
t
y
a
b
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sk
ay
a E
mb
., S
t. P
et
er
s
bu
r
g 193
0
7
9
Sm
it
hs D
ete
c
ti
on R
us L
L
C
Ordinar
y
10
0
B.
s
av
v
in
sk
y Per, D.
1
1, Mos
co
w, 1
19
4
3
5
L
LC J
ohn C
r
a
ne R
us
Ordinar
y
10
0
SAU
DI
ARABIA
Dammam Industrial City, Dammam, 324
3
Jo
hn Cr
ane S
a
ud
i A
r
a
bi
a Lt
d
Or
dinar
y
10
0
Bu
il
di
ng 7, Zone A
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r
p
or
t ro
ad
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s
in
e
ss G
a
te, P
.O Box Ri
y
a
d
h 1
168
3
, 9
3
59
7
Sm
it
hs D
ete
c
ti
on S
audi A
ra
bi
a Lt
d
Share
s
10
0
SINGAP
ORE
6 Sh
en
to
n Way, OU
E D
ow
n
to
w
n #2
6
-
0
0
, 0
6
8
8
0
9
Jo
hn Cr
ane S
in
ga
po
r
e P
te L
i
mi
ted
Ordinar
y
10
0
20
, P
a
si
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anj
a
ng Ro
a
d
, #13-26 M
ap
l
et
re
e Bu
s
in
es
s C
it
y, 1
1743
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Sm
it
hs C
on
ne
c
to
r
s A
sia P
te. Ltd
.
O
rdinar
y
10
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Or
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10
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SL
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Dvor
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Jo
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ane S
lo
v
ak
i
a SR
O
Or
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10
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SUBSIDI
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H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
18
4
Name
Secur
it
y
Direct
(%)
T
otal
(%)
SOUTH AFRI
CA
2, J
an
s
en R
oa
d
, Nu
f
f
ie
ld I
n
du
s
tr
i
al S
it
es
, S
pr
i
n
gs G
au
te
ng
, 155
9
Flexibox
(Pt
y
) Limit
ed
Ordina
r
y
10
0
Jo
hn Cr
ane P
t
y Lt
d
Ordin
ar
y
10
0
SPA
IN
Ce
m
en
to 1, T
or
re
jo
n De A
rdo
z
, Ma
d
r
id
Jo
hn Cr
ane Ib
e
r
ic
a S
A
Or
dinar
y
10
0
SW
EDEN
Knivsta, 7
4
1
80
Habia T
eknofluor AB
Sh
ares
10
0
T
eknofluor
Holding AB
Sh
ares
10
0
Falt
s
p
at
s
g
at
a
n 4
, Se
-4
21 3
0 Va
s
tr
a Frol
un
d
a
Jo
hn Cr
ane S
ve
r
ig
e A
B
Or
dinar
y
10
0
SWITZE
RLAND
Hohenrains
tras
se 10,
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1
33 Pratteln
Jo
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ane (
S
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i
t
zer
lan
d
) A
G
Ordinar
y
10
0
T
AIW
AN
32
4
-
4, Fo
n
g-J
en Ro
a
d, R
en
w
u Di
s
tr
i
c
t
, K
ao
h
si
un
g Ci
t
y 814
Jo
hn Cr
ane Taiw
a
n Co L
td
.
O
rdinar
y
10
0
THAI
L
AND
9
/31
1, 3
1
st Floor
,
Um T
o
wer
, Ramkhamhaeng Road, Suanluang Distric
t, Bangkok
Jo
hn Cr
ane (
Th
ai
l
an
d) L
i
mi
te
d
Ordinar
y; Pref
10
0
99/3
Moo 5, Kingkaew Road, T
ambol Rajatheva, A
mphoe Bangplee,
Samutpr
akarn Prov
ince, 1
054
0
Sm
it
hs D
ete
c
ti
on (
T
ha
il
an
d
) L
imi
te
d
Pref;
Ordin
ar
y
10
0
TUNI
SI
A
Zone Industrielle Ro
ute De Khniss, Monastir
, 50
00
Smiths Connec
tors T
unisia SAR
L
Or
dinar
y
10
0
TURK
E
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Istanbul Sar
iyer
, Huz
ur Mahallesi, Ahmet Bayman Cad
dessi, Dis,
Reklamcilik Apt No:
1
7
-
1
9
/
1
John Crane Endus
tri
yel Sizdirma
zlik Sistemler
i Ltd
Ordina
r
y
10
0
UNITE
D ARA
B E
MIRA
TES
Bu
il
di
ng B10, I
nd
us
t
r
ia
l Mu
s
s
af
fah
, M
4
4, S
e
c
to
r 15, A
bu D
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ab
i
Sm
it
hs D
ete
c
ti
on S
e
c
ur
i
t
y S
y
s
tem
s L
lc
Share
s
49
Du
ba
i A
i
r
po
r
t Free Z
on
e, P
O B
ox 4
82
25
, Bu
il
d
in
g No
. 8
WA (
We
s
t Si
de
), 4
01, Du
ba
i
Sm
it
hs D
ete
c
ti
on M
id
dl
e E
as
t Fze
Sh
ares
10
0
S2
01
13, Je
b
el A
li Fr
e
e Zo
ne
, 6
104
0
Jo
hn Cr
ane Mi
dd
le E
a
s
t Fze
Or
dinar
y
10
0
UNITE
D ST
A
TES
OF AM
ERICA
51 Gro
w
th Roa
d
, L
a
co
ni
a, N
H, 0
3
2
4
6
L
ake
s Re
gi
on Tubul
ar P
r
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du
c
t
s In
c.
Common Stock
10
0
1
1
6, P
i
ne St
r
ee
t
, 3r
d F
lo
o
r
, Sui
te 3
2
0, H
ar
r
i
s
bu
r
g, PA 17101
T
utco,
Llc
Ordin
ar
y
10
0
180 Va
n Ri
p
er Av
en
ue
, El
mw
o
od P
a
r
k
, N
J 0
740
7
Kr
eisler Industr
ial Corp
Common Stock
10
0
Kr
eisler Manufac
turing Cor
p
Common Stock
10
0
20
8 S
. L
a
s
al
l
e Str
e
et
, S
ui
te 814
, Ch
ic
a
go
, IL
, 6
0
6
0
4
John Crane Int
ernational Inc.
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w
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United Flex
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10
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US H
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0
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Unit
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echnologies, I
nc.
Common Stock
10
0
SUBSIDI
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02
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Name
Secur
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T
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Flexible T
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Ordina
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10
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F
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U
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Or
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10
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John Crane Group,
Llc
Ordinar
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10
0
Jo
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c
Common; Prefer
red
10
0
Jo
hn Cr
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S
A
, Inc
O
rdinar
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10
0
MDII Investments L
LC
Or
dinar
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10
0
Powerc
am-Houdaille, Inc.
Common Shares
10
0
Roy
a
l Me
ta
l P
ro
du
c
t
s
, L
LC
O
rdinar
y
10
0
Smiths Busines
s Information Ser
v
ices
, Inc.
Common
Stock
10
0
Smiths Detection International, Llc
Equ
ity In
t
erests
10
0
Sm
it
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c
ti
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l
din
gs
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L
C
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bil
i
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y C
o
mp
an
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st
s
10
0
Sm
it
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ti
on U
S
, L
lc
Or
dinar
y
10
0
Smiths Group Ser
vices Cor
p.
Common Stock
10
0
Smiths Interconnect A
meric
as, Inc.
Common Stock
10
0
Smiths Interconnect, Inc.
Common Stock
10
0
Smiths US Innovation LLC
Ordin
ar
y
10
0
CT C
o
r
p
or
a
ti
on S
ys
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to
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co
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Smiths T
ubular Systems-L
aconia, Inc
O
rdinar
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s
10
0
CT C
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p
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Titeflex Commer
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Or
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10
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On
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p
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Titeflex Corpor
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Th
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Smiths Detection Inc
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10
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Zona Industrial El
Silencio, Maracaibo, 4001
Jo
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ane Ven
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A
Cl
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Common
10
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SOCIA
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Th
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ou
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nie
s ha
ve e
s
ta
bl
is
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r
a
nch o
pe
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ati
on
s out
side
the UK
.
SUBSIDI
A
RY UNDERT
AK
ING
S
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
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Y2
0
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2
03
GOV
ERNA
NCE
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ST
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TEM
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6
Financ
ial c
alendar
2022
2023
(provision
al)
Anno
uncement of
F
Y20
2
2 Results
23 September
Div
idend Ex-Dividend Date
20 O
c
t
ob
er
Di
v
i
de
nd Re
co
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2
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RI
P El
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c
to
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Annual Gener
al Meeting
1
6 November
Div
idend Payment Dat
e
1
8 November
Anno
uncement of
F
Y20
2
3 Interim Results
24 March
Int
erim Div
idend Ex-Div
idend Dat
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31 July
Anno
uncement of
F
Y20
2
3 Results
Sep
tember
Reg
istered Of
fice
Smiths Group pl
c
4th Floor
1
1
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St James’
s Square
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on S
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w
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w.smiths.com
Registr
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Our s
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Mon
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co
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r an a
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or
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av
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our d
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ly to y
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or a c
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he B
an
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or
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or r
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our n
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d b
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il
din
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cc
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w
w.sharev
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B
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in
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by d
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t cr
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di
t on th
e di
v
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d pa
y
me
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ate.
Alternati
vely, Smiths offers a Div
idend Reinvestment Pl
an. For more
info
r
m
ati
on p
le
a
se v
i
si
t ou
r w
ebs
i
te or c
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a
c
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in
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Ordinar
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s
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Lo
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we
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com
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consult your stockbroker
, bank
manager
, solicitor
,
accountant or o
ther independent profes
sional adv
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vices and
Mar
kets A
c
t 2
0
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he m
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i
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ay b
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li
ne b
y r
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is
te
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in
g on o
ur w
eb
si
te w
w
w.s
mi
th
s
.co
m.
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ar
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ol
d
er
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h
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nab
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o at
te
nd t
he A
GM i
n pe
r
s
on a
r
e en
co
ur
a
g
ed to v
ote t
he
ir s
har
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s b
y ap
po
int
in
g a pr
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d is
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oti
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ns
tr
uc
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on
s.
El
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t
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on
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ap
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ent
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nd v
ot
in
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st
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ti
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st b
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d b
y th
e Co
mp
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a
r no
t l
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ha
n 4
8 hour
s befo
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e
AG
M is h
el
d in o
r
de
r to be v
ali
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ha
r
eh
ol
de
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s w
h
o ar
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t CR
E
S
T me
mb
er
s can a
pp
o
int a p
r
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nd v
ote o
nl
in
e b
y v
is
it
in
g w
w
w.sh
ar
e
v
ote.
co
.uk
.
CRES
T member
s, CRES
T per
sonal member
s and other CREST
-sponsor
ed member
s should consult the CREST Manual or their
spons
or or voting
ser
vice prov
ider for instruc
tions on electr
onic prox
y appointment and
voting.
SHAR
EHOLDER INFORMA
TION
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
R
T F
Y2
0
2
2
03
GOV
ERNA
NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
18
7
For
w
ar
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-lo
oking
st
atements
T
his r
e
po
r
t cont
a
in
s cer
t
ain f
or
w
ar
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-
lo
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in
g s
ta
tem
ent
s. T
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p
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in a nu
mb
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l
a
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s th
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ou
gh
ou
t th
is d
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um
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nd i
nc
lu
de s
t
ate
me
nt
s
re
g
ar
di
ng t
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ntent
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s, b
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i
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s an
d
/or c
ur
r
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t ex
pe
c
t
at
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ns of S
mi
t
hs
Gr
ou
p pl
c (t
he '
Co
mp
an
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s s
ub
si
dia
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ie
s (
to
get
he
r
, the '
Gr
o
up'
) an
d
those of their respecti
ve of
ficer
s, dire
ctor
s and employees concer
ning,
amongst other things, the result
s of
oper
ations
, financial condition,
li
qu
idi
t
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sp
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t
s
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r
ow
th
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tr
a
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us
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by t
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r
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w
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of fo
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ki
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er
m
ino
lo
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clu
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ng te
r
m
s su
ch a
s "b
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s
t
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a
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"
p
l
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s",
"pr
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ec
t
s", "goa
l
", "t
ar
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et
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ai
m"
, "ma
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"
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t
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v
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tai
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nti
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s’ in thi
s
re
po
r
t. Fu
t
ur
e e
ve
nt
s an
d ci
rc
um
s
t
an
ce
s c
an c
a
us
e pe
r
for
m
an
ce
, re
s
ul
t
s
an
d de
ve
lo
pm
en
t
s to di
f
f
er m
ater
iall
y f
ro
m th
o
se e
xp
r
e
s
se
d
, imp
l
ie
d or
ant
ici
p
ate
d. T
h
e pa
s
t bu
si
ne
s
s an
d f
in
an
ci
al p
er
for
manc
e of th
e G
ro
up i
s
not to b
e r
el
i
ed o
n as a
n in
di
c
ati
on of i
t
s f
u
tur
e p
er
fo
r
ma
nc
e. T
h
e fo
r
wa
r
d
-
lo
ok
in
g s
ta
tem
ent
s r
e
fl
ec
t k
n
o
w
le
dg
e an
d inf
or
m
at
io
n av
a
il
ab
le a
t th
e
date o
f pr
e
pa
r
at
io
n of t
his d
o
cu
men
t an
d, u
nle
s
s ot
he
r
w
is
e r
eq
ui
re
d b
y
app
l
ic
a
bl
e l
aw, t
he C
om
p
an
y un
der
t
ake
s no o
bl
i
gat
io
n to up
d
ate or r
e
v
i
se
the
s
e fo
r
w
ar
d
-l
o
ok
in
g s
ta
tem
ent
s
. U
nd
ue r
el
i
anc
e sh
ou
ld n
ot b
e pl
a
ce
d
on s
uch f
or
w
a
r
d-
lo
ok
in
g s
t
atem
en
t
s
. Not
hin
g in t
hi
s do
cu
me
nt sh
o
uld
be c
on
s
tr
u
ed a
s a p
ro
f
it f
or
e
c
as
t o
r be i
nter
p
r
ete
d to m
ea
n th
at f
ut
ur
e
ea
r
ni
ng
s pe
r sh
ar
e of t
he C
om
p
an
y w
il
l ne
ce
s
s
ar
ily ma
tch o
r exce
e
d it
s
his
to
r
i
c
al pu
bl
i
sh
ed e
ar
n
in
gs p
er s
ha
r
e. T
h
e Co
mp
a
ny a
nd i
t
s Di
r
ec
to
r
s
acc
ep
t no l
ia
bi
li
t
y to thir
d p
a
r
tie
s. T
h
is d
o
cum
en
t co
nta
in
s br
and
s th
at ar
e
tr
a
d
ema
r
k
s an
d ar
e r
e
gi
s
ter
e
d an
d
/or ot
he
r
wi
s
e pr
ote
c
te
d in a
cc
or
d
anc
e
w
it
h ap
pl
ic
a
bl
e l
aw. S
o
me o
f th
e pr
o
du
c
t
s de
s
cr
i
b
ed i
n the
s
e m
ater
ial
s
ar
e un
de
r de
v
el
op
me
nt an
d ar
e n
ot av
a
il
a
bl
e fo
r s
ale
, an
d w
e ma
ke no
def
in
it
i
v
e cl
a
im
s ab
ou
t th
e f
in
al fe
at
ur
e
s or b
en
ef
i
t
s of th
e
se p
r
o
duc
t
s.
01
OVE
RVIEW
02
ST
RATEGIC REPORT
SM
I
T
H
S GR
O
UP P
L
C A
NN
U
A
L R
EP
O
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T F
Y2
0
2
2
03
GOV
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NCE
04
FINAN
CIAL
ST
A
TEM
ENTS
18
8
Designed and produced by
Radley Y
eldar
www
.
ry
.
c
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T
his r
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po
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s p
r
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up
using their environmental print technolog
y
which minimises the negative env
ironmental
imp
a
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t
s of th
e pr
intin
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ro
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get
a
bl
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ba
s
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nk
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e u
se
d th
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ou
gh
ou
t an
d 9
9
%
of th
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y w
a
st
e an
d 95
% of t
he c
le
an
in
g
solvent
s associated with this produc
tion were
re
c
y
c
le
d. T
h
is r
e
po
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t is pr
i
nte
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v
i
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e 100
,
ma
de f
r
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0
% F
S
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®
Recy
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tif
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sourced from de-inked
post-consumer waste.
T
he p
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it
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v
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me
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Management Sys
tems Standard and both are
FSC
®
cer
ti
f
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d. T
h
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ll a
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co
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v
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d
pa
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mi
s
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s
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ted w
i
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me
as
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FSC
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– Forest Stewardship Council
®
T
his e
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n
the p
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i
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a
c
tor
y.
ISO 1
4001
A pa
t
ter
n of cont
r
ol f
or an e
nv
i
r
on
me
nt
al
man
a
ge
me
nt s
y
s
tem a
ga
in
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hich a
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or
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ni
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at
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a
n b
e acc
r
ed
ite
d b
y a th
ir
d p
ar
t
y.
L
S
E: S
MIN
A
DR
: SM
GZ
Y
SMITH
S GROUP PLC
4th Flo
or
1
1
-
1
2 St Jame
s’
s S
quar
e
London S
W1Y 4LB, UK
+
4
4 (
0)2
0 7
0
0
4 1
60
0
w
w
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