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Smith Nephew Smith + Nephew Fourth Quarter and Full Year 2020 Results Building on our investments and focused on growth 18 February 2021 Smith + Nephew ( LSE : SN , NYSE : SNN ) , the global medical technology business , reports results for the fourth quarter and full year ended 31 December 2020 : Fourth Quarter Results 1,2 Revenue 31 Dec 2020 31 Dec 2019 Reported Underlying growth growth $ m $ m % % 1,326 1,407 -5.8 -7.1 Full Year Results 1,2 Revenue 4,560 5,138 -11.2 -12.1 Operating profit 295 815 Operating profit margin ( % ) 6.5 15.9 EPS ( cents ) 51.3 68.6 Trading profit 683 1,169 Trading profit margin ( % ) 15.0 22.8 EPSA ( cents ) 64.6 102.2 2020 Full Year Highlights • • • • • • • Full Year revenue $ 4,560 million , down -11.2 % reported and -12.1 % underlying Trading profit margin 15.0 % reflected lower gross margins , negative leverage from SG & A costs and increased R & D investment Operating profit margin of 6.5 % included restructuring costs related to efficiency programmes Cash generated from operations $ 972 million ( 2019 : $ 1,370 million ) , trading cash flow $ 690 million ( 2019 : $ 970 million ) , trading profit to cash conversion ratio 101 % ( 2019 : 83 % ) Increased R & D investment , with recent product launches performing well Delivered acquisitions in extremities , ENT and ASC segments , securing new innovation to support sustainable growth Full Year 2020 dividend distribution of 37.5 ¢ per share , unchanged from 2019 , reflecting confidence in the business and strength of the balance sheet 2021 Priorities • • • Return to top - line growth and recapture momentum , driven by our differentiated product portfolio and pipeline , additional investment in R & D , and recent acquisitions Deliver further operational improvement across the Group , including in manufacturing and supply chain , freeing up resources for future investment Continue to respond effectively to COVID - 19 , enhancing flexible working for employees , supporting customers and maintaining cost control measures 2021 Outlook • The outlook reflects the likely continuation of COVID - 19 impact during the first half of 2021 and the uncertainty regarding the timing and pace of recovery