www.smiths-group.com/ir

1
Smiths Group Meetings with investors in
California
Alan Thomson - Financial Director Russell
Plumley - Director, Investor Relations August 2004
Register here to receive regular information
?
www.smiths-group.com/ir
2
Smiths GroupGood progress on reshaping the
company
2001
2002
2003
2004
(financial years)
Acquisitions
Aero100m
Aero30m
Detection90m
Detection375m
Detection60m
total spent on acquisitions 940 million
Medical60m
Medical80m
Spec Eng25m
Spec Eng10m
Spec Eng110m
MERGER
DEBT 500m
DEBT2.5bn
Auto demerger 900m cash 470m prefs
Engineering80m
Engineering255m
Spec Eng 35m
Polymer Seals770m
Marine Seals340m
Disposals
3
Focusing on activities with solid growth potential
Estimated contribution to FY2004
Smiths Aerospace Systems and equipment for
military and commercial aircraft
approx sales
proportion of op. profit
1.8 billion Margin 10
Smiths Detection Equipment for protection against
threats to security
0.6 million Margin 17
Smiths Medical Devices for critical care and
medication delivery
0.8 billion Margin 19
Specialty Engineering Application-specific
electronic and engineered products
1.5 billion Margin 13
(/1.75)
4
Adding valuable bolt-ons in each divisionSix
acquisitions since March 04 for 385m
Aerospace DGT

• Engine Components

102m
Detection Cyrano SensIR
15m

• Miniaturised detector
• Hazmat kit

75m
Medical Smiths MedicalJapan DHD
27m

• Full ownership of Japanese distribution
• US respiratory care devices

55m
Spec Eng TRAK

• Microwave components for military communications
  airborne antennae

111m
5
Commitment to RD will help deliver organic growth
The latest products will drive sales ahead
Aerospace (systems for) A380, B7E7, F-35
Medical Needle-Pro, Cozmonitor, Cozmore
Detection Bio-Seeq, Sentinel II, Hi-Scan
(Continuing activities)
10 of sales
7 of sales
460m
400m
310m
255m
company funded
customerfunded
2001
2002
2003
2004 (E)
6
Delivering improved operational
performanceOperating globally to reduce the
cost base and get closer to customers
Mexico ? Medical ? John Crane Poland ? Aero
components Malaysia ? Flex-Tek Costa Rica ?
Interconnect Czech Republic ? John Crane China
? Aerospace ? John Crane ? Interconnect

• China
• 130,000 sq ft
• Engine components
• customer GE

7
Smiths Group Significant presence in the US
exports 400m
2004 (estimated) Sales 2.4 billion Net Assets
1.6 billion Employees 12,000
Smiths
70 manufacturing locations in 29 states
8
approx contrib. to 2004 profit
Smiths Aerospace Smiths is a leader in aircraft
electronics, actuation systems and engine
components
Defense
Aftermarket
First tier supplier
Systems integrator
Significant investment in RD
Restructuring benefits will be retained
Commercial
OE
Recovery delivers rapid improvement in margins
sales

• Commercial
• OE recovery starts FY06
• And aftermarket in FY05
• Smiths substantial presence on next-generation
  aircraft

• Defense
• Current programmes performing effectively
• New programmes will sustain growth
• Procurement budget continues to increase, but
  will slow

9
Smiths Aerospace Steady through the recent
downturn, sales will regain momentum as the
commercial market recovers
Outlook for 2005 Sales growth (in ) circa 7,
margin circa 10
CAGR 2000-2004 5
commercial
largely organic
defense
Sales held steady through commercial market
downturn
1,760m
1,590m
1,590m
1,570m
1,450m
Sales
2000
2001
2002
2003
2004 (E)
10
A strong presence on next generation commercial
aircraft Smiths systems on the 7E7
High lift system leading edge
Leading edge power drive unit
Landing gear systems flight deck interface
Common computing resource
Common data network
High lift system - trailing edge
Common core system remote data concentrators
Nose gear steering, actuation and brake control
monitoring system
Enhanced airborne flight recorder
Common core system remote data concentrators
Common data network
Trailing edge power drive unit

• The main Smiths systems
• Common Core Computing
• Landing Gear Actuation
• High Lift Actuation

Main gear actuation and brake control monitoring
system
11
approx contrib. to 2004 profit
Smiths Detection A rapidly evolving business,
finding new applications for core technologies
Sound organic growth ? Technology acquisitions
? Commitment to RD ? World-wide presence
Sales 2004
Military
Military
Airports
Airports
Firstresponders
Critical infrastructures
Ports and borders
First responders
Critical infrastructures
Ports and borders
Other
12
Smiths Detection sales have grown rapidly,
firstly from 9/11, then from wider application
of detection systems
Outlook for 2005 Sales growth (in ) circa 20,
margin circa 17
CAGR 2000-2004 56
from organic and acquired growth
560m
Heimann acquired
435m
Barringer acquired
175m
95m
90m
Sales
2000
2001
2002
2003
2004 (E)
Includes post-9/11 orders from TSA
13
Smiths Detection market leadership across the
full range of capabilities
X-Ray (Checkpoint)
EDS/EDtS
Cargo
Explosives trace
Chem
Bio
X
X
X
X
X
Smiths Detection
X
X
X
L3
InVision
X
X
OSI/Rapiscan
X No. 1 or 2 player

• Smiths has
• Broadest range of technologies
• Widest market access

14
approx contrib. to 2004 profit
Smiths Medical innovative products are driving
profitable growth

• Strong market niches in two specialized areas
• Increased healthcare spending assures steady
  market growth
• Technology leadership sustains margins above 18
• World-scale business driven by dynamic US market
• 40 of production in low-cost areas

US
RoW
Japan
Europe
sales
Medication Delivery Patient Monitoring
Anaesthesia Safety Devices
15
Smiths Medical healthcare spending continues to
rise steadily, benefiting the market for medical
devices
Outlook for 2005 Sales growth (in ) circa 9,
margin circa 19
CAGR 2000-2004 8
largely organic
855m
770m
700m
660m
635m
Sales
2000
2001
2002
2003
2004 (E)
New product innovation is driving organic growth
16
Smiths Medical leading the way in treating
serious (Type 1) diabetes

• Cozmo - insulin delivery pump
• 10,000 sold since launch (Nov 02)
• 50 of sales to people under 20
• Gaining firm market share in US
• Intl sales underway, inc France/Canada
• Combined pump/glucose monitor will be launched
  this year

Use of insulin pumps in the US
1.3m

• The next stepCozmonitor
• Monitor combined with pump
• Blood/glucose level displayed
• Easily stored/retrieved data

0.8m
Type 1 diabetics
0.3m
PUMPS
98
00
02
04E
17
approx contrib. to 2004 profit
Specialty EngineeringBusiness units are
performing well
John Crane
Ducting

• John Crane
• Strengthening market presence in Russia, China
  and South America
• Oil gas sector showing growth, except in
  Middle East
• Productivity improvement continues

Marine
Interconnect
sales

• Interconnect
• Defense business forging ahead
• Substantial recovery in cellphone infrastructure

• Flex-Tek
• Achieving growth in difficult markets

• Marine
• Margins improving from a low level ? Shipping
  market buoyant

18
Specialty Engineering robust market positions,
high cash-flow
Outlook for 2005 Sales growth (in ) circa 10,
margin circa 13
CAGR 2000-2004 5
Organic and acquired
Telecom slowdown affected Interconnect
1,520m
1,410m
1,390m
1,320m
1,270m
Sales
2000
2001
2002
2003
2004 (E)
19
Smiths Group Good track record turning profits
into cash
Operating profit
80
Operating cash-flow (after capex)
Free cash-flow
7 yield on equity
Generates additional growth
Self-funded acq. prog.
Current yield 3.7
Dividend programme
Over the past 3yrs Smiths has generated 1.2bn of
free cash-flow
20
Register here to receive regular information
?
www.smiths-group.com/ir