Slides
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Third Quarter Trading Update 2026 4 November 2026
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Forward looking statements and non-IFRS measures This document may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected revenue growth and trading profit margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. For Smith+Nephew, these factors include: economic and financial conditions in the markets we serve, especially those affecting healthcare providers, payers and customers; price levels for established and innovative medical devices; developments in medical technology; regulatory approvals, reimbursement decisions or other government actions; product defects or recalls or other problems with quality management systems or failure to comply with related regulations; litigation relating to patent or other claims; legal compliance risks and related investigative, remedial or enforcement actions; disruption to our supply chain or operations or those of our suppliers; competition for qualified personnel; strategic actions, including acquisitions and dispositions, our success in performing due diligence, valuing and integrating acquired businesses; disruption that may result from transactions or other changes we make in our business plans or organisation to adapt to market developments; relationships with healthcare professionals; reliance on information technology and cybersecurity; and numerous other matters that affect us or our markets, including those of a political, economic, business, competitive or reputational nature. Please refer to the documents that Smith+Nephew has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Smith+Nephew's most recent annual report on Form 20-F, for a discussion of certain of these factors. Any forward-looking statement is based on information available to Smith+Nephew as of the date of the statement. All written or oral forward-looking statements attributable to Smith+Nephew are qualified by this caution. Smith+Nephew does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in Smith+Nephew's expectations. The terms ‘Group’ and ‘Smith+Nephew’ are used for convenience to refer to Smith & Nephew plc and its consolidated subsidiaries, unless the context requires otherwise. Certain items included in ‘trading results’ , such as trading profit, trading profit margin, trading attributable profit, tax rate on trading results (trading tax expressed as a percentage of trading profit before tax), Adjusted Earnings Per Ordinary Share (EPSA), trading cash flow, free cash flow, trading profit to trading cash conversion ratio, leverage ratio, and underlying revenue growth are non-IFRS financial measures. The non-IFRS financial measures in this announcement are explained and, where applicable, reconciled to the most directly comparable financial measure prepared in accordance with IFRS in our Second Quarter and Half Year 2026 Results announcement dated 4 August 2026.
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Summary Focused on driving shareholder value • Investing in Sports and Wound where we see a clear route to market leadership • Continuing to improve Orthopaedics performance through new product launches while actively exploring the full range of strategic options to deliver value Q2 2026 Underlying revenue growth of 3.4% in Q3, an acceleration from Q2 • Strong Sports Medicine & ENT, including double digit growth in Joint Repair, and improved performance in Wound, led by acceleration in Advanced Wound Devices • Orthopaedics returned to growth, despite weaker performance and some market softness in US knees and hips, ahead of new launches • >50% of growth from products launched in last 5 years Updating full year guidance to reflect trading in US Recon • Expect c.3% revenue growth for the full year, driven by weaker US Knees and Hips • Expect trading profit of c. $1.25b, as operational improvements continue to flow through to P&L, and FCF expected to be c.$750m, reflecting strong cash conversion 3 Q3 2026
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Q3 2026 4 Q3 2026 revenue
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Q3 2026 summary revenue performance Growth by Business Unit* Growth by Region* Orthopaedics $590m Sports Med & ENT $507m AWM $454m Total revenue of $1,551m • Underlying revenue growth of +3.4%; reported 3.4% • Same number of trading days vs Q3 2025 • No impact from FX on reported growth 5 * Growth rates are versus Q3 2025 on an underlying basis 4.8% 3.2% 3.0% 3.4% Other Established Markets $456m Emerging Markets $283m US $812m Group $1,551m Group $1,551m Q3 2026 2.5% - 0.2% 7.9% 3.4%
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Sports Medicine & ENT Strong growth in Joint Repair and AET; ENT impacted by China VBP as expected Q3 2026 6 Q3 sales factors • Sports Medicine Joint Repair +11.2%: • Continued strong growth from core portfolio and REGENETEN TM • Growth well balanced across all regions • AET +7.5% (+8.7% ex China): • Strong performance in FASTSEAL TM and Services • Double - digit growth in US offsetting China weakness ahead of VBP • ENT - 5.6% (+10.0% ex China): • Strong growth in the US and International driven by Nose and Throat • Inventory channel reductions in China ahead of VBP implementation Q3'25 Q3'26 SMJR AET ENT $469m $507m Revenue of $507m: +7.9% underlying*; +8.0% reported RISE: 2026 drivers • Drive further market penetration of REGENETEN • Capitalise on strength of shoulder portfolio • Launch TESSA TM , our first - in - industry spatial surgery arthroscopic platform - 5.6% +7.5% +11.2% * Growth rates are versus Q3 2025
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Advanced Wound Management Strong acceleration in AWD and solid growth in AWC; AWB impacted by US reimbursement change Q3 2026 7 Q3 sales factors • Advanced Wound Care +1.2%: • Above market growth in foam dressings • Double digit growth in US ALLEVYN TM , led by ALLEVYN COMPLETE CARE • Advanced Wound Bioactives - 8.8%: • SANTYL TM returned to modest growth • Skin substitutes stable sequentially despite US reimbursement headwind • Advanced Wound Devices +10.7%: • Strong growth in PICO TM in the US and internationally • LEAF TM Patient Monitoring System continues to see strong uptake Q3'25 Q3'26 AWC AWB AWD $455m $454m Revenue of $454m: - 0.2% underlying*; 0.0% reported RISE: 2026 drivers • Take share with ALLEVYN COMPLETE CARE • Navigate CMS reimbursement change to skin substitutes and prior authorisation in SANTYL • Access new settings and patient populations with products including PICO and LEAF +10.7% - 8.8% +1.2% * Growth rates are versus Q3 2025
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Orthopaedics Returned to growth, with international strength offsetting weaker performance and market in US Knees and US Hips Q3 2026 8 Q3 sales factors • Global Knees and Hips - 2.0% and +2.0%: • US Hips - 1.0%; CATALYSTEM TM momentum tempered by pace of set deployment, and Knees - 7.3%; continued effect of portfolio mix relative to market demand • OUS Hips +6.0%; strong performance across International and Emerging Markets, and Knees +4.0%; good growth in Emerging Markets • Trauma & Extremities +1.8%: • Strength in AETOS TM and IM Nails • Double digit growth in Emerging Markets • Other Reconstruction +44.7 %, strong growth in placements globally and continued strong progress in enterprise deals in the US Q3'25 Q3'26 Knees Hips Other Recon** Trauma and Extremities $577m $590m Revenue of $590m: +2.5% underlying*; +2.3% reported RISE: 2026 drivers • Drive growth with CORI TM , supported by launch of Shoulder • Execute initial launch of LANDMARK TM knee • Deliver operational efficiencies with Ortho 360 operational model +1.8% +44.7% +2.0% - 2.0% * Growth rates are versus Q3 2025 ** Other Recon includes robotics capital sales, joint navigation and bone cement
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Updated 2026 guidance 9 c.9% ROIC* c.3% revenue growth* Q 3 2026 c.4% trading profit growth* Revenue growth given on an underlying basis and trading profit growth on a reported basis *Excluding M&A c.$ 750 m FCF c.$1.25b trading profit incl marginal Integrity dilution
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RISE Strategy 10 Q3 2026
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11 • A l eading position in a market worth c.$7.0 billion, growing c.6% annually • #1 or #2 position in every major segment we compete in • Creating new categories with Big Four: REGENETEN, CARTIHEAL TM AGILI - C TM , TENDON SEAM and TESSA • Opportunity to deliver sustained above - market growth, underpinned by strong core portfolio and the Big Four Strong leadership position… Recent Key Launches …With multiple drivers of growth Q3 2026 Sports Medicine & ENT: Leading positions in large, attractive markets Joint Repair AET ENT LYNX TM COBLATION Laryngeal Wand PHOENIX AURA TM CIT Wand PHOENIX TM Next Gen Controller Flow FLEXTEND TM TULA TM WEREWOLF TM COBLATION TM System TESSA Femur TESSA Tibia NextGENETEN REGENETEN Clinical evidence CARTIHEAL AGILI - C Q - FIX TM KNOTLESS TENDON SEAM TM *pending regulatory clearance 2027 - 2028*
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12 • Large and attractive market worth c.$13.1b • Hold #1 or #2 position across the 3 segments of the wound market • Broad portfolio to participate in highest growth markets • Opportunity to expand our participation in attractive segments Strength and breadth across portfolio… Recent Key Launches …With continued investment in innovation Q3 2026 AWM: Strong position in fragmented market AWC AWB AWD 2027 - 2028* LEAF 3.0 PICO New Sizes ALLEVYN AG+ ALLEVYN COMPLETE CARE Next Gen ALLEVYN Gentle Border BIOBRANE TM US GRAFIX TM PLUS RENASYS WOUND+ LEAF Releases RENASYS TM Abdo Shield PICO Protect FLEX Synthetic Scaffold *pending regulatory clearance
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Ortho: Strengthened business entering next product cycle 13 • Global Business Unit alignment • Operational transformation • Right - sized manufacturing capacity • Improved inventory health • Rewired commercial engine • Tighter performance management • Refocused innovation and improved execution • Established launch excellence process Stronger as a result of 12 - PP… Recent Key Launches LEGION TM MS Inserts CORI XT KNEE LANDMARK Knee CR Porous LANDMARK Knee CR Cemented CATALYSTEM Hip System CORIOGRAPH TM Hip CORIOGRAPH Shoulder AETOS CONCELOC Glenoid EVOS TM Patella INTERTAN TM MAX Hip Fracture Nail TRIGEN TM MAX Tibia Nailing System EVOS Pelvic AETOS Shoulder Knee Hip Shoulder Trauma CORI XT SHOULDER (AETOS) CORI XT HIP Robotic System CORI XT HIP Impactor …With further progress to come as launches scale Q3 2026 CORI KNEE (CT) INTERTAN MAX ( Retrograde & Antegrade) 2027 - 2028* *pending regulatory clearance
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Key messages 14 Q3 2026 Underlying Q3 revenue growth accelerated from Q2, with strength in Sports, improved performance in Wound and return to growth in Orthopaedics Updating full year guidance to reflect trading in US Recon and now expect c.3% revenue growth, c.$1.25b trading profit, with profit growth still ahead of revenue growth as operational improvements flow through to P&L, and c.$750m FCF, reflecting strong cash conversion Sustained innovation driving growth across the portfolio with >50% of our growth coming from products launched within the last 5 years Focused on driving shareholder value through investing in Sports and Wound and exploring the full range of options for Orthopaedics , while also executing on product launches
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Q3 2026 16 Appendix
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Technical guidance for FY 202 6 17 November 2026 Foreign exchange and acquisitions Translational FX impact on revenue growth (1) c. 1 .0% Acquisition impact on revenue growth - Non - trading items Restructuring costs c.$ 70 m Acquisition and integration c.$ 85 m Other Adjusted Reported Amortisation of acquisition intangibles $165 - 1 7 5m $165 - 1 7 5m Income/(loss) from associates (2) $15 - 20m $ 10 - 15 m Net interest (3) c.$1 2 5m c.$1 2 5m Other finance costs $ 10 - 1 5 m $15 - 20m Tax rate on trading result 19 - 20% Dividend payout ratio 35 - 40% (1) Based on the foreign exchange rates prevailing on 30 October 202 6 (2) Based on analyst consensus forecasts for associate, sourced from Capital IQ on 22 October 2026 and considering management gui dan ce issued on 02 November 2026 (3) Includes interest associated with IFRS 16 Leases
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Revenue analysis by Business Unit 202 5 202 6 Q1 Growth % Q2 Growth % Q3 Growth % Q4 Growth % Full Year Growth % Q1 Growth % Q 2 Growth % Q3 Growth % Q 3 Revenue $m Orthopaedics 3.2 5.0 4.1 7.9 5.1 0.8 ( 1.0 ) 2.5 590 Knee Implants 0.7 2.9 1.5 6.1 2.9 (2.8) (4.3) (2.0) 229 Hip Implants (1.2) 3.4 3.7 5.7 2.9 4.1 0.5 2.0 157 Other Reconstruction 46.6 39.8 9.7 40.8 33.8 6.0 0.8 44.7 41 Trauma & Extremities 6.3 4.4 7.5 6.9 6.3 2.4 2.4 1.8 16 3 Sports Medicine & ENT 2.4 5.7 5.1 7.3 5.2 6.7 8.6 7.9 5 07 Sports Medicine Joint Repair 2.9 8.4 8.6 10.9 7.8 10.0 10.6 11.2 2 83 Arthroscopic Enabling Technologies (0.1) 2.3 0.2 3.4 1.6 6.7 8.8 7.5 1 69 ENT 7.8 3.6 4.3 2.3 4.4 (9.4) (1.6) (5.6) 5 5 Advanced Wound Management 3.8 10.2 6.0 2.8 5.6 2.2 (2.1) (0.2) 45 4 Advanced Wound Care 2.5 2.6 1.1 4.4 2.6 4.9 3.7 1.2 20 0 Advanced Wound Bioactives (2.0) 18.6 12.2 (0.5) 6.8 (1.7) (12.7) (8.8) 144 Advanced Wound Devices 15.7 12.7 6.7 5.4 9.8 1.9 3.8 10.7 1 10 Total 3.1 6.7 5.0 6.2 5.3 3.1 1.6 3.4 1,5 51 18 All revenue growth rates are on an underlying basis and without adjustment for number of selling days.
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Quarterly revenue analysis by region 19 2025 202 6 Q1 Growth % Q2 Growth % Q3 Growth % Q4 Growth % FY Growth % Q1 Growth % Q 2 Growth % Q3 Growth % Q3 Revenue $m US 3.6 8.7 5.5 5.6 5.9 2.1 (1.3) 3.0 812 Other Established Markets (1) 5.0 7.4 3.9 7.2 5.9 1.0 1.7 3.2 456 Established Markets 4 . 1 8.2 4.9 6.2 5.9 1.7 (0.2) 3.1 1, 268 Emerging Markets (1 . 7) (0.2) 5.4 6.4 2.5 10.5 10.6 4.8 2 83 Total 3 . 1 6.7 5.0 6.2 5.3 3 . 1 1.6 3.4 1,5 51 (1) Other Established Markets are Australia, Canada, Europe, Japan and New Zealand. All revenue growth rates are on an underlying basis and without adjustment for number of selling days
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Q3 consolidated revenue analysis by Business Unit 20 Q 3 202 6 Q 3 202 5 Reported growth Underlying growth Acquisitions/dis posals Currency impact $m $m % % % % Orthopaedics 590 577 2.3 2.5 - (0.2) Knee Implants 2 29 2 35 ( 2.6) ( 2.0 ) - (0.6) Hip Implants 1 57 1 54 1.9 2.0 - (0.1) Other Reconstruction 41 29 43.8 44.7 - (0.9) Trauma & Extremities 16 3 1 59 2.3 1.8 - 0.5 Sports Medicine & ENT 5 07 4 69 8.0 7.9 - 0.1 Sports Medicine Joint Repair 2 83 2 55 11. 1 1 1.2 - (0.1) Arthroscopic Enabling Technologies 1 69 1 57 7.7 7.5 - 0.2 ENT 5 5 5 7 ( 4 . 8 ) ( 5.6 ) - 0.8 Advanced Wound Management 45 4 45 5 (0 .0 ) ( 0.2 ) - 0.2 Advanced Wound Care 20 0 19 7 1.4 1.2 - 0.2 Advanced Wound Bioactives 144 1 58 ( 8.7 ) ( 8.8 ) - 0. 1 Advanced Wound Devices 1 10 10 0 10.7 10.7 - 0.0 Total 1,5 51 1,5 01 3.4 3.4 - 0.0
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21 Trading days per quarter Q1 Q2 Q3 Q4 Full year 202 4 63 64 63 62 252 2025 62 63 63 63 251 202 6 6 1 63 63 6 4 251 202 7 6 4 64 63 6 0 25 1