Our strategy
At Smiths, we are dedicated to being Pioneers of Progress, improving our world through smarter engineering.
Our strategy to achieve this is to Outperform our Chosen Markets and Deliver World-class Competitiveness, supported by our Strong Financial Framework.


We actively manage our portfolio of businesses. They operate in growing markets where we can achieve a sustainable top three leadership position.
- DEFINE OUR BUSINESSES:
Our businesses share the same characteristics: technology differentiation; increasing digitisation; sustainably competitive and asset light; and high proportion of aftermarket and services.
- FOCUS ON ATTRACTIVE MARKETS:
We focus the portfolio on attractive markets with strong long-term growth drivers.
- MAXIMISE GROWTH:
We maximise growth through organic investment and a highly disciplined approach to acquisitions, disposals and integration

We drive discernible, sustained competitive advantage through focused deployment of innovation and investment; attracting and retaining the best talent; and relentless execution through our shared operating model and the Smiths Excellence System (SES).
- INNOVATE TO EXCEED CUSTOMER EXPECTATIONS:
Our Group innovation framework drives change and helps our businesses to nurture key projects, which deliver meaningful benefits for customers.
- ENGAGE OUR PEOPLE TO DRIVE THE BEST PERFORMANCE:
Our People Plan is focused on building a learning organisation which attracts and retains talent; engages, develops and inspires our people; and embeds our values.
- EXECUTE CONSISTENTLY:
SES ensures that we focus on continuous improvement, speed and efficiency. Our operating model optimises global business services for maximum effectiveness.

We maintain a strong financial framework by:
- Focusing the portfolio on sustainably competitive and asset light businesses
- Delivering profitable growth with sustainable margins
- Maintaining balance sheet strength and investing with strong financial discipline.

Key Performance Indicators
Operational Performance

as measured by % revenue from top three positions
AMBITION:
90%+ revenue from top three positions in attractive markets
STRATEGIC OBJECTIVE: 1 & 3

as measured by Aftermarket % of sales
AMBITION:
50%+ as a percentage of total revenue
STRATEGIC OBJECTIVE: 1

as measured by Vitality Index
AMBITION:
~20% revenue from new products as a percentage of total revenue
STRATEGIC OBJECTIVE: 1, 2 & 3

as measured by stock turns
AMBITION:
6.0x stock turns
STRATEGIC OBJECTIVE: 2 & 3

as measured by employee engagement score
AMBITION:
Create a nurturing and inclusive working environment
STRATEGIC OBJECTIVE: 2

as measured by RIR
AMBITION:
Create the safest working environment
STRATEGIC OBJECTIVE: 2
Financial Performance

as measured by underlying revenue growth
AMBITION:
Outperform our chosen markets
STRATEGIC OBJECTIVE: 1 & 3

as measured by headline operating profit margin
AMBITION:
18-20% headline operating profit margin
STRATEGIC OBJECTIVE: 2 & 3

as measured by ROCE
AMBITION:
16-18% ROCE through the cycle
STRATEGIC OBJECTIVE: 2 & 3

as measured by working capital % sales
AMBITION:
~20% working capital as a % of total revenue
STRATEGIC OBJECTIVE: 2 & 3

as measured by headline cash conversion
AMBITION:
100%+ headline cash conversion
STRATEGIC OBJECTIVE: 2 & 3

as measured by reduction in Greenhouse Gas (GHG) emissions
AMBITION:
net zero scope 1 and 2 emissions by 2040
STRATEGIC OBJECTIVE: 2 & 3