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ROLL NUMBER

NAME

2007-02-0325
2007-02-0224
2007-02-0322

SHAHAN ARSHAD KHAN


IMAAD-UD-DIN
MOHSIN ALI

TABLE OF CONTENTS
INDUSTRY MODEL
INCOME STATEMENT
BALANCE SHEET
CASH FLOWS
VALUATION
GRAPHS
COMPETITOR ANALYSIS

Year

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

ORTHOPAEDICS MARKET

Total Market value ( in millions )


Smith & Nephew share %
Smith & Nephew share ( in millions )

4704

5200

5200

5900

6500

7%

7.67%

9.04%

8.91%

9.06%

329.3

398.8

470.2

525.4

588.7

Orthopaedic industry growth


Population growth rate
Correlation of Population growth rate with Orthopedic market

7516
8%
601.25

8624
8%
689.89

9833
8%
786.63

11153
8%
892.21

12592
8%
1007.37

14162
8%
1132.99

15875
8%
1269.96

17740
8%
1419.17

19770
8%
1581.60

21979
8%
1758.31

9%

9%

9%

9%

9%

9%

9%

9%

9%

9%

1.13%

1.12%

1.12%

1.11%

1.10%

1.09%

1.09%

1.08%

1.08%

1.08%

0.966

Increase in industry sales due to increase in population ( millions )

430.62

431.54

433.20

434.75

435.81

436.92

437.58

436.43

433.75

429.62

3932.95

4359.74

4821.10

5319.78

5858.62

6440.86

7069.85

7748.86

8481.50

9271.67

ENDOSCOPY

Total Market Value ( in millions )

3000

3500

3000

3538

3538

Smith & Nephew share %

7.20%

7.20%

9.70%

8.40%

8.59%

Smith & Nephew share ( in millions )

216.4

252.8

291.8

300

304.8

Endoscopy industry growth

9%
353.97

9.50%
414.18

10%
482.11

10%
531.98

10%
585.86

10%
644.09

10%
706.99

10%
774.89

10%
848.15

10%
927.17

8%

8%

8%

8%

8%

8%

8%

8%

8%

8%

Population growth rate

1.13%

1.12%

1.12%

1.11%

1.10%

1.09%

1.09%

1.08%

1.08%

1.08%

Correlation of Population growth rate with endoscopy market

0.612

Increase in industry sales due to increase in population ( millions )

111.91

112.15

112.58

112.98

113.26

113.55

113.72

113.42

112.73

111.65

2243.07

2610.60

3004.67

3427.08

3879.58

4364.30

4883.26

5437.99

6030.25

6661.95

WOUND MANAGEMENT

Total Market Value ( in millions )

1004

1300

1500

1600

1900

Smith & Nephew share %

21%

22%

21.44%

22%

18.68%

210.9

285.6

321.7

353.5

355

Smith & Nephew share ( in millions )


Wound management growth
Population growth rate
Correlation of Population growth rate with Wound management market

448.61

20%
522.12

20%
600.93

20%
685.42

20%
775.92

20%
872.86

20%
976.65

20%
1087.60

20%
1206.05

20%
1332.39

7%

7%

7.00%

7%

7%

7%

7%

7%

7%

7%

1.13%

1.12%

1.12%

1.11%

1.10%

1.09%

1.09%

1.08%

1.08%

1.08%

0.988

Increase in industry sales due to increase in population ( millions )


Total Smith & Nephew Sales ( millions)

20%

756.6

937.2

1083.7

1178.9

1248.5

210.07

210.52

211.33

212.08

212.60

213.14

213.46

212.90

211.60

209.58

1,403.8

1,626.2

1,869.7

2,109.6

2,369.1

2,649.9

2,953.6

3,281.7

3,635.8

4,017.9

Orthopaedics Market Leaders


Company

Orthopaedics
% share

Smith & Nephew


Synthes
Biomet
Depuy
Stryker
Zimmer
Others

9%
11%
11%
17%
18%
21%
13%

Smith &
Nephew, 9%
Synthes, 11%

Others, 13%

Zimmer, 21%
Biomet, 11%

Arthoscopy (Endoscopy) Market Leaders


Company
Smith & Nephew
Arthrex
Linvatec
Mitek
Stryker
Arthrocare
Others

Depuy, 17%

Stryker, 18%

% Share
29%
14%
14%
17%
12%
7%
7%

Endoscopy

Advanced Wound Management Market Leaders


Company
Smith & Nephew
KCI
Johnson & Johnson
Convatec
3M
Others

Arthrocare, 7%

% share
19%
21%
9%
12%
8%
31%

Others, 7%

Smith &
Nephew,
29%

Stryker, 12%

Mitek, 17%

Arthrex, 14%

Linvatec, 14%

Wound Management

Smith &
Nephew, 19%

Others, 31%

KCI, 21%
3M, 8%

Convatec, 12%

Johnson &
Johnson, 9%

Year

Population

Average
Average annual
annual
growth
population
Correlation with orthopeadic industry sales
rate (%)
change
0.96574404
1.21
74,198,390
1.18
73,131,957
1.16
72,829,487
1.15
73,034,337
1.14
73,333,658 Correlation with Endoscopy industry sales
1.13
73,513,683
0.611746778
1.12
73,671,901
1.12
73,955,357
1.11
74,218,880
1.1
74,400,969
1.09
74,590,249 Correlation with Wound management sales
1.08
74,702,291
1.06
74,506,473
0.988351098
1.05
74,049,210
1.03
73,343,850
1
72,593,761

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

6,079,603,571
6,153,801,961
6,226,933,918
6,299,763,405
6,372,797,742
6,446,131,400
6,519,645,083
6,593,316,984
6,667,272,341
6,741,491,221
6,815,892,190
6,890,482,439
6,965,184,730
7,039,691,203
7,113,740,413
7,187,084,263

2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039

7,259,678,024
7,331,553,922
7,402,601,692
7,472,711,767
7,541,773,753
7,609,796,922
7,676,807,894
7,742,728,067
7,807,511,491
7,871,143,446
7,933,735,688
7,995,416,937
8,056,200,750
8,116,088,998
8,175,075,482
8,233,237,965
8,290,662,683
8,347,339,662
8,403,243,316
8,458,343,864
8,512,681,617
8,566,305,168
8,619,193,326
8,671,319,503

0.99
0.96
0.94
0.92
0.9
0.88
0.86
0.83
0.81
0.79
0.77
0.76
0.74
0.72
0.71
0.7
0.68
0.67
0.65
0.64
0.63
0.62
0.6
0.59

71,875,898
71,047,770
70,110,075
69,061,986
68,023,169
67,010,972
65,920,173
64,783,424
63,631,955
62,592,242
61,681,249
60,783,813
59,888,248
58,986,484
58,162,483
57,424,718
56,676,979
55,903,654
55,100,548
54,337,753
53,623,551
52,888,158
52,126,177
51,326,750

2040
2041
2042
2043
2044

8,722,646,253
8,773,194,981
8,822,987,862
8,871,973,889
8,920,103,785

0.58
0.57
0.55
0.54
0.53

50,548,728
49,792,881
48,986,027
48,129,896
47,232,506

2045
2046
2047
2048
2049

8,967,336,291
9,013,687,554
9,059,176,816
9,103,776,620
9,147,470,346

0.52
0.5
0.49
0.48
0.47

46,351,263
45,489,262
44,599,804
43,693,726
42,782,186

Sales Orthopaedics
4704
5200
5200
5900
6500

Sales Endoscopy
3000
3500
3000
3538
3538

Sales Wound Management


1004
1300
1500
1600
1900

ORTHOPAEDICS
SUMMARY OUTPUT
Regression Statistics population and sales
Multiple R
0.96574404
R Square
0.932661551
Adjusted R Square
0.910215402
Standard Error
210.4513945
Observations
5
ANOVA
df
Regression
Residual
Total

SS
1840288.183
132869.3684
1973157.551

MS
1840288.183
44289.78946

F
41.55107091

Coefficients
Standard Error
-30972.12559
5659.007136
5.85763E-06
9.08721E-07

t Stat
-5.473067067
6.446012016

P-value
0.011992211
0.007571708

1
3
4

Intercept
X Variable 1

Significance F
0.007571708

Lower 95%
Upper 95% Lower 95.0%
-48981.62884 -12962.6223 -48981.6288
2.96567E-06 8.74959E-06 2.9657E-06

5.858

Sales Orthopaedics

sales

7000
6000
5000
4000
3000
2000
1000
0
6,000

6,100

6,200

Population

6,300

6,400
Millions

Upper 95.0%
-12962.62234
8.74959E-06

ENDOSCOPY
SUMMARY OUTPUT
Regression Statistics population and sales
Multiple R
0.611746778
R Square
0.374234121
Adjusted R Square
0.165645494
Standard Error
263.209279
Observations
5
ANOVA
df
Regression
Residual
Total

SS
124295.4263
207837.3737
332132.8

MS
124295.4263
69279.12455

F
1.794125246

Coefficients
Standard Error
-6163.656238
7077.658913
1.52232E-06
1.13653E-06

t Stat
-0.870860876
1.339449605

P-value
0.447915003
0.272858371

1
3
4

Intercept
X Variable 1

Significance F
0.272858371

Lower 95%
Upper 95% Lower 95.0%
-28687.94683 16360.63435 -28687.9468
-2.09462E-06 5.13926E-06 -2.0946E-06

1.522

Sales

Sales Endoscopy
3600
3500
3400
3300
3200
3100
3000
2900
6,000

6,100

6,200
Population

WOUND MANAGEMENT

6,300

6,400
Millions

Upper 95.0%
16360.63435
5.13926E-06

SUMMARY OUTPUT
Regression Statistics population and sales
Multiple R
0.988351098
R Square
0.976837894
Adjusted R Square
0.969117191
Standard Error
58.83403788
Observations
5
ANOVA
df
Regression
Residual
Total

Intercept
X Variable 1

SS
437948.468
10384.33204
448332.8

MS
437948.468
3461.444013

F
126.5218984

Coefficients
Standard Error
-16331.81855
1582.038651
2.85753E-06
2.54043E-07

t Stat
-10.32327405
11.24819534

P-value
0.001938826
0.001506611

1
3
4

Significance F
0.001506611

Lower 95%
Upper 95% Lower 95.0%
-21366.57633 -11297.0608 -21366.5763
2.04905E-06 3.66601E-06
2.049E-06

2.858
Population growth
7,400
7,200
7,000

Population

2000
1800
1600
1400
1200
1000
800
600
400

Millions

Sales Wound Management

6,800
6,600
6,400

Upper 95.0%
-11297.06076
3.66601E-06

Smith & Nephew


Income Statement
million
Net Revenue
%Growth
Cost of Sales
Cost of Sales as a % of sales
Gross Profit
Gross Margin
Marketing, Selling & Distribution

Marketing, Selling & Distribution as a % of sales


Administration

Administration as a % of Sales
Research & development

Research & development as a % of Sales


Other

Other as a % of Sales
EBITDA
EBITDA Margin
Depreciation and Amortisation

Depreciation Rate
Operating profit
Share of Operating profit of joint venture
Net profit on disposals
EBIT
Interest recievable
interest expense/ payable

Interest rate
EBT
Tax expense
Tax Rate
Net profit
Net Margin
Unappropriated profit brought forward

Prior year Re-Adjustment


Other
Profit Available for Appropriation
Less Dividends
Ordinary
Special
Total Dividends
Payout Ratio
Unappropriated profit carried forward
Number of Shares '000
Earnings Per Share
Dividend Per Share

1999

2000

2001

2002

479.6
42.83%
640.3
57.17%
(304.7)
27.21%
(112.2)
10.02%
(40.4)
3.60%
(11.2)
1.00%
171.9
15.35%
(56.1)
20.74%
115.8
0
62.9
178.7
10.3
(6.9)
5.94%
182.1
77.3
42.44%
104.8
9.36%
259.5
0.0
29.5
393.8

1,134.7
1.32%
456.8
40.26%
677.9
59.74%
(314.3)
27.70%
(100.0)
8.81%
(40.7)
3.59%
2.2
-0.19%
225.0
19.83%
(62.9)
25.05%
162.1
0
106.3
268.4
4.4
(11.4)
3.60%
261.4
56.2
21.50%
205.2
18.08%
321.3
0.0
21.9
548.4

1,081.7
-4.67%
350.2
32.37%
731.5
67.63%
(357.6)
33.06%
(112.2)
10.37%
(46.4)
4.29%
(1.0)
0.09%
214.3
19.81%
(60.3)
24.61%
154.0
7.8
49.2
211.0
2.5
(19.9)
5.55%
193.6
64.0
33.06%
129.6
11.98%
91.5
(61.6)
38.8
198.3

1,109.9
2.61%
329.9
29.72%
780.0
70.28%
(375.7)
33.85%
(115.3)
10.39%
(55.6)
5.01%
(8.4)
0.76%
224.9
20.26%
(74.2)
29.01%
150.7
21.9
18.0
190.6
6.6
(19.3)
4.70%
177.9
65.8
36.99%
112.1
10.10%
155.4
0.0
36.8
304.3

72.5
0.0
72.5
69.17%
321.3
1,117,814
0.09
0.06

41.3
415.6
456.9
222.66%
91.5
919,458
0.22
0.50

42.9
0.0
42.9
33.10%
155.4
925,081
0.14
0.05

44.6
0.0
44.6
39.79%
259.7
929,029
0.12
0.05

1,119.9

2003

2004

2005

2006

2007

2008

2009

2010

2011

1,178.9
6.22%
345.1
29.27%
833.8
70.73%
(387.4)
32.86%
(110.5)
9.37%
(58.8)
4.99%
(19.0)
1.61%
258.1
21.89%
(78.3)
30.40%
179.8
24.8
31.5
236.1
11.0
(17.0)
5.75%
230.1
82.0
35.64%
148.1
12.56%
259.7
2.8
12.3
422.9

1,248.5
5.90%
334.8
26.82%
913.7
73.18%
(435.6)
34.89%
(122.4)
9.81%
(60.7)
4.86%
(59.4)
4.76%
235.6
18.87%
(84.6)
29.95%
151.0
23.8
0.0
174.8
13.9
(10.8)
3.43%
177.9
52.7
29.62%
125.2
10.03%
376.8
0.0
2.9
504.9

1,403.8
12.44%
376.45
26.82%
1,027.4
73.18%
(489.82)
34.89%
(137.50)
9.79%
(84.23)
6.00%
(9.18)
0.65%
306.7
21.84%
(75.2)
26.63%
231.4
23.8
0.0
255.2
9.8
(14.3)
4.70%
250.7
75.2
30.00%
175.5
12.50%
457.1
0.0
0.0
632.7

1,626.2
15.84%
436.08
26.82%
1,190.1
73.18%
(567.40)
34.89%
(159.27)
9.79%
(97.57)
6.00%
(10.63)
0.65%
355.2
21.84%
(93.6)
26.63%
261.7
23.8
0.0
285.5
11.3
(16.5)
4.70%
280.3
84.1
30.00%
196.2
12.06%
557.2
0.0
0.0
753.4

1,869.7
14.97%
501.38
26.82%
1,368.3
73.18%
(652.36)
34.89%
(183.12)
9.79%
(112.18)
6.00%
(12.22)
0.65%
408.4
21.84%
(111.0)
26.63%
297.4
23.8
0.0
321.2
13.0
(19.0)
4.70%
315.3
94.6
30.00%
220.7
11.80%
669.0
0.0
0.0
889.7

2,109.6
12.83%
565.71
26.82%
1,543.9
73.18%
(736.07)
34.89%
(206.62)
9.79%
(126.58)
6.00%
(13.79)
0.65%
460.8
21.84%
(128.1)
26.63%
332.7
23.8
0.0
356.5
14.7
(21.4)
4.70%
349.8
104.9
30.00%
244.8
11.61%
794.8
0.0
0.0
1,039.6

2,369.1
12.30%
635.32
26.82%
1,733.8
73.18%
(826.63)
34.89%
(232.04)
9.79%
(142.15)
6.00%
(15.49)
0.65%
517.5
21.84%
(145.0)
26.63%
372.6
23.8
0.0
396.4
16.5
(24.1)
4.70%
388.8
116.6
30.00%
272.2
11.49%
934.4
0.0
0.0
1,206.5

2,649.9
2,953.6
11.85%
11.46%
710.61
792.04
26.82%
26.82%
1,939.3
2,161.6
73.18%
73.18%
(924.60) (1,030.56)
34.89%
34.89%
(259.54) (289.29)
9.79%
9.79%
(159.00) (177.22)
6.00%
6.00%
(17.32)
(19.31)
0.65%
0.65%
578.9
645.2
21.84%
21.84%
(161.9)
(179.4)
26.63%
26.63%
416.9
465.8
23.8
23.8
0.0
0.0
440.7
489.6
18.4
20.5
(26.9)
(30.0)
4.70%
4.70%
432.2
480.1
129.7
144.0
30.00%
30.00%
302.6
336.1
11.42%
11.38%
1,089.5
1,261.9
0.0
0.0
0.0
0.0
1,392.1
1,598.0

46.1
0.0
46.1
31.13%
376.8
933,526
0.16
0.05

47.8
0.0
47.8
38.18%
457.1
937,136
0.13
0.05

75.5
0.0
75.5
43.00%
557.2
937,674
0.19
0.08

84.4
0.0
84.4
43.00%
669.0
937,674
0.21
0.09

94.9
0.0
94.9
43.00%
794.8
937,674
0.24
0.10

105.3
0.0
105.3
43.00%
934.4
937,674
0.26
0.11

117.0
0.0
117.0
43.00%
1,089.5
937,674
0.29
0.12

130.1
0.0
130.1
43.00%
1,261.9
937,674
0.32
0.14

144.5
0.0
144.5
43.00%
1,453.5
937,674
0.36
0.15

2012

2013

2014

3,281.7
3,635.8
4,017.9
11.11%
10.79%
10.51%
880.02
974.98 1,077.44
26.82%
26.82%
26.82%
2,401.6
2,660.8
2,940.4
73.18%
73.18%
73.18%
(1,145.02) (1,268.59) (1,401.90)
34.89%
34.89%
34.89%
(321.42) (356.10) (393.52)
9.79%
9.79%
9.79%
(196.90) (218.15) (241.07)
6.00%
6.00%
6.00%
(21.45)
(23.77)
(26.27)
0.65%
0.65%
0.65%
716.9
794.2
877.7
21.84%
21.84%
21.84%
(197.7)
(216.9)
(237.3)
26.63%
26.63%
26.63%
519.2
577.3
640.3
23.8
23.8
23.8
0.0
0.0
0.0
543.0
601.1
664.1
22.8
25.3
27.9
(33.3)
(36.9)
(40.8)
4.70%
4.70%
4.70%
532.5
589.5
651.3
159.7
176.8
195.4
30.00%
30.00%
30.00%
372.7
412.6
455.9
11.36%
11.35%
11.35%
1,453.5
1,666.0
1,901.2
0.0
0.0
0.0
0.0
0.0
0.0
1,826.3
2,078.6
2,357.1
160.3
0.0
160.3
43.00%
1,666.0
937,674
0.40
0.17

177.4
0.0
177.4
43.00%
1,901.2
937,674
0.44
0.19

196.0
0.0
196.0
43.00%
2,161.0
937,674
0.49
0.21

Smith & Nephew


Balance Sheet
million
Fixed assets
Intangible assets
Tangible assets
investments
Total fixed assets

1998

1999

2000

2001

2002

2003

28.3
291.7
14.4
334.4

74
270.5
16.6
361.1

163
251.1
24
438.1

187.8
245
139.7
572.5

317.2
255.8
131.7
704.7

269.4
257.6
126.6
653.6

Current assets
Stocks
Debtors
Cash and bank
Total current assets

242.4
278.6
49.9
570.9

237.6
281.1
100.5
619.2

228.2
277.8
24.6
530.6

232.2
266.8
26.4
525.4

229.5
280.7
22.5
532.7

230.6
334.5
26
591.1

Total Assets

905.3

980.3

968.7

1097.9

1237.4

1244.7

289
86.6
44.2
419.8

312.4
58
58.2
428.6

322
82
235.1
639.1

334.5
94
264.8
693.3

309.6
151.9
258.6
720.1

308.4
96.9
198.6
603.9

111.4
0.3
259.5
114.3
485.5

111.8
0.3
321.3
118.3
551.7

112.4
0.3
91.5
125.4
329.6

113.1
0.3
155.4
135.8
404.6

113.5
0.3
259.7
143.8
517.3

114.1
(2.10)
376.8
152
640.8

905.3
0

980.3
0

968.7
0

1097.9
0

1237.4
0

1244.7
0

Liabilities

Trade creditors
Short term loans
Long term loans
Total liabilities
Equity
Equity share capital
non equity share capital
Retained earnings
Reserves
Total equity
Total liabilities and equity

Balancing

2004

2005

2006

2007

2008

2009

2010

2011

2012

332.2
282.5
125.9
740.6

308.2
351.4
160.0
819.6

357.0
416.8
185.4
959.2

410.5
481.1
213.2
1,104.7

463.1
544.4
240.5
1,248.0

520.1
608.2
270.1
1,398.4

581.7
673.9
302.1
1,557.7

648.4
742.4
336.7
1,727.6

720.4
814.7
374.1
1,909.2

284.9
361.8
32.6
679.3

293.7
365.4
72.1
731.2

340.3
423.3
108.1
871.6

391.2
486.6
157.5
1,035.3

441.4
549.1
222.0
1,212.5

495.7
616.6
299.8
1,412.2

554.5
689.7
391.5
1,635.7

618.0
768.8
497.5
1,884.2

686.7
854.1
618.6
2,159.4

1,550.8

1,830.8

2,140.1

2,460.5

2,810.7

3,193.4

3,611.8

4,068.7

377.9
31.9
283.1
692.9

400.1
7.8
303.3
711.2

463.4
56.7
351.3
871.4

532.8
110.1
403.9
1,046.9

601.2
162.8
455.8
1,219.7

675.2
219.8
511.8
1,406.8

755.2
281.4
572.5
1,609.1

841.7
348.1
638.1
1,827.9

935.2
420.1
709.0
2,064.3

114.5
(4.20)
457.1
159.6
727

114.5
0.3
557.2
167.6
839.6

114.5
0.3
669.0
175.6
959.4

114.5
0.3
794.8
183.6
1,093.2

114.5
0.3
934.4
191.6
1,240.8

114.5
0.3
1,089.5
199.6
1,403.9

114.5
0.3
1,261.9
207.6
1,584.3

114.5
0.3
1,453.5
215.6
1,783.9

114.5
0.3
1,666.0
223.6
2,004.4

2,140.1
0

2,460.5
0

2,810.7
0

3,193.4
0

3,611.8
0

4,068.7
0

1,419.9

1,419.9
0

1,550.8
0

1,830.8
0

2013

2014

798.2
891.4
414.5
2,104.1

882.0
973.4
458.1
2,313.5

760.8
946.3
755.8
2,462.9

840.7
1,045.8
910.2
2,796.7

4,567.0

5,110.2

1,036.1
497.8
785.5
2,319.5

1,145.0
581.7
868.0
2,594.8

114.5
0.3
1,901.2
231.6
2,247.6

114.5
0.3
2,161.0
239.6
2,515.4

4,567.0
0

5,110.2
0

Smith & Nephew


Cash Flows
million
CASH FLOW FROM OPERATING ACTIVITIES
Net income
Depreciation and amortization
Loss/(Profit) on sale of tangible fixed assets
Others non cash expenses
Decrease/(increase) in stock
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net Working capital
Net cash flow from operating activities

2005

2006

2007

2008

175.5
75.2
0.0
0.0
(8.8)
(3.6)
22.2
9.7
260.5

196.2
93.6
0.0
0.0
(46.5)
(57.9)
63.4
(41.0)
248.7

220.7
111.0
0.0
0.0
(50.9)
(63.4)
69.4
(44.9)
286.7

244.8
128.1
0.0
0.0
(50.2)
(62.4)
68.4
(44.3)
328.7

CASH FLOW FROM INVESTING ACTIVITIES


CAPEX
Acquisition and disposals
trade Investments
Net cash flows from investing activities

(94.1)
(50.0)
(34.1)
(178.2)

(109.0)
(50.0)
(25.4)
(184.3)

(125.3)
(50.0)
(27.8)
(203.1)

(141.4)
(50.0)
(27.4)
(218.7)

0.0
20.2
(75.5)
8
4.5
(42.8)

0.0
48.0
(84.4)
8
0
(28.3)

0.0
52.6
(94.9)
8
0
(34.3)

0.0
51.8
(105.3)
8
0
(45.4)

39.5

36.0

49.4

64.5

CASH FLOW FROM FINANCING ACTIVITIES


Issuance of stocks
Decrease / increase in long term loans
Dividends
Increase / Decrease in Reserves
Increase / Decrease in Non-Equity Share Capital
net cash flows from financing activities
Net increase / decrease in cash

2009

2010

2011

2012

2013

2014

272.2
145.0
0.0
0.0
(54.3)
(67.6)
74.0
(47.9)
369.2

302.6
161.9
0.0
0.0
(58.8)
(73.1)
80.0
(51.8)
412.7

336.1
179.4
0.0
0.0
(63.5)
(79.0)
86.5
(56.0)
459.5

372.7
197.7
0.0
0.0
(68.6)
(85.4)
93.5
(60.5)
509.9

412.6
216.9
0.0
0.0
(74.1)
(92.2)
100.9
(65.4)
564.2

455.9
237.3
0.0
0.0
(79.9)
(99.4)
108.9
(70.5)
622.7

(158.8)
(50.0)
(29.6)
(238.4)

(177.6)
(50.0)
(32.0)
(259.6)

(197.9)
(50.0)
(34.6)
(282.6)

(219.9)
(50.0)
(37.4)
(307.3)

(243.7)
(50.0)
(40.4)
(334.0)

(269.3)
(50.0)
(43.6)
(362.8)

0.0
56.1
(117.0)
8
0
(53.0)

0.0
60.7
(130.1)
8
0
(61.4)

0.0
65.6
(144.5)
8
0
(70.9)

0.0
70.9
(160.3)
8
0
(81.4)

0.0
76.5
(177.4)
8
0
(92.9)

0.0
82.5
(196.0)
8
0
(105.5)

77.9

91.6

106.0

121.1

137.2

154.4

Smith & Nephew


Ratio Analysis

1999

2000

2001

2002

2003

57.17%
15.96%
9.36%

59.7%
23.7%
18.1%

67.6%
19.5%
12.0%

70.3%
17.2%
10.1%

70.7%
20.0%
12.6%

1.67
1.03
248.8
0.40
0.27

1.31
0.75
126.6
0.24
0.06

1.23
0.68
96.9
0.18
0.06

1.15
0.66
71.2
0.13
0.05

1.46
0.89
185.8
0.31
0.06

4.71
76.4
3.98
90.4
3.58
100.4
166.7
66.3

4.97
72.4
4.08
88.1
3.52
102.2
160.5
58.4

4.66
77.3
4.05
88.8
3.23
111.3
166.1
54.7

4.84
74.4
3.95
91.0
3.58
100.4
165.5
65.1

5.11
70.4
3.52
102.1
3.82
94.2
172.6
78.4

Profitability Ratios
Return on Assets(ROA)
Return on Investment(ROI)
Return on Equity(ROE)

10.3%
27.4%
19.0%

21.9%
38.1%
62.3%

13.4%
24.5%
32.0%

10.1%
22.0%
21.7%

12.4%
30.4%
23.1%

Return on Equity with Dupont


Operating Margin
Earnings Retention
Interest Burden
Asset Turnover
Leverage
ROE

16.0%
57.6%
1.02
1.14
1.78
19.0%

23.7%
78.5%
0.97
1.17
2.94
62.3%

19.5%
66.9%
0.92
0.99
2.71
32.0%

17.2%
63.0%
0.93
0.90
2.39
21.7%

20.0%
64.4%
0.97
0.95
1.94
23.1%

Financial Leverage Ratios


Short-term + Long-term Debt to Assets Ratio
Long-term Debt to Assets Ratio
Equity to Long Term Capital ratio
Long-term Debt to Long Term Capital ratio
Long-term Debt to Equity ratio
Interest Coverage Ratio(Times Interest Earned)

0.12
0.06
0.90
0.10
0.11
(52.6)

0.33
0.24
0.58
0.42
0.71
38.3

0.33
0.24
0.60
0.40
0.65
12.1

0.33
0.21
0.67
0.33
0.50
15.0

0.24
0.16
0.76
0.24
0.31
39.4

Other Ratios
Degree of Operating Leverage(DOL)
Degree of Financial Leverage(DFL)
Plowback Ratio
CAPEX/Sales Ratio

16.0%
58.7%
30.8%
6.0%

19.5%
61.4%
66.9%
6.7%

17.2%
58.8%
60.2%
7.7%

20.0%
62.7%
68.9%
6.1%

Profitability Ratios
Gross Margin
Operating Margin
Net Margin
Liquidity Ratios
Current Ratio
Quick Acid Ratio
Net Working Capital
Net working Capital to Asset
Cash ratio
Activity Ratios
Inventory Turnover
Inventory Days
Receivables Turnover
Average Collection Period
Payables Turnover
Average Payable Period
Operating Cycle
Net Operating Cycle

23.7%
76.5%
-122.7%
5.6%

Earnings per share


P/E ratio
Revenue per share
Interest/revenue
Interest/expense
Dividend per Net profit
Dividend per Share
Equity per share
LT Debt/sales
Investments/sales
intangible assets as % age of sales

0.09
22.18
1.00
(0.00)
(0.01)
0.69
0.06
0.49
0.05

0.22
13.89
1.23
0.01
0.01
2.23
0.50
0.36
0.21
2.1%
14.37%

0.14
29.61
1.17
0.02
0.03
0.33
0.05
0.44
0.24
12.9%
17.36%

0.12
31.53
1.19
0.01
0.02
0.40
0.05
0.56
0.23
11.9%
28.58%

0.16
29.47
1.26
0.01
0.01
0.31
0.05
0.69
0.17
10.7%
22.85%

2004

2005

2006

2007

2008

2009

2010

2011

2012

73.2%
14.0%
10.0%

73.2%
18.2%
12.5%

73.2%
17.6%
12.1%

73.2%
17.2%
11.8%

73.2%
16.9%
11.6%

73.2%
16.7%
11.5%

73.2%
16.6%
11.4%

73.2%
16.6%
11.4%

73.2%
16.5%
11.4%

1.66
0.96
269.5
0.40
0.08

1.79
1.07
323.3
0.44
0.18

1.68
1.02
351.5
0.40
0.21

1.61
1.00
392.4
0.38
0.24

1.59
1.01
448.5
0.37
0.29

1.58
1.02
517.3
0.37
0.34

1.58
1.04
599.1
0.37
0.38

1.58
1.06
694.5
0.37
0.42

1.59
1.09
804.1
0.37
0.46

4.38
82.1
3.45
104.3
3.30
109.0
186.5
77.5

4.78
75.3
3.84
93.7
3.51
102.6
169.0
66.4

4.78
75.3
3.84
93.7
3.51
102.6
169.0
66.4

4.78
75.3
3.84
93.7
3.51
102.6
169.0
66.4

4.78
75.3
3.84
93.7
3.51
102.6
169.0
66.4

4.78
75.3
3.84
93.7
3.51
102.6
169.0
66.4

4.78
75.3
3.84
93.7
3.51
102.6
169.0
66.4

4.78
75.3
3.84
93.7
3.51
102.6
169.0
66.4

4.78
75.3
3.84
93.7
3.51
102.6
169.0
66.4

8.6%
18.5%
17.2%

11.6%
25.6%
20.9%

11.0%
24.7%
20.4%

10.6%
24.2%
20.2%

10.2%
23.8%
19.7%

10.0%
23.6%
19.4%

9.7%
23.4%
19.1%

9.6%
23.3%
18.8%

9.4%
23.3%
18.6%

14.0%
70.4%
1.02
0.88
1.95
17.2%

18.2%
70.0%
0.98
0.91
1.85
20.9%

17.6%
70.0%
0.98
0.89
1.91
20.4%

17.2%
70.0%
0.98
0.87
1.96
20.2%

16.9%
70.0%
0.98
0.86
1.98
19.7%

16.7%
70.0%
0.98
0.84
2.00
19.4%

16.6%
70.0%
0.98
0.83
2.02
19.1%

16.6%
70.0%
0.98
0.82
2.02
18.8%

16.5%
70.0%
0.98
0.81
2.03
18.6%

0.22
0.20
0.72
0.28
0.39
(56.4)

0.20
0.20
0.73
0.27
0.36
56.8

0.22
0.19
0.73
0.27
0.37
54.9

0.24
0.19
0.73
0.27
0.37
53.7

0.25
0.19
0.73
0.27
0.37
52.8

0.26
0.18
0.73
0.27
0.36
52.3

0.27
0.18
0.73
0.27
0.36
52.0

0.27
0.18
0.74
0.26
0.36
51.8

0.28
0.17
0.74
0.26
0.35
51.7

14.0%
71.6%
61.8%
8.1%

18.2%
68.8%
57.0%
6.7%

17.6%
68.7%
57.0%
6.7%

17.2%
68.7%
57.0%
6.7%

16.9%
68.7%
57.0%
6.7%

16.7%
68.7%
57.0%
6.7%

16.6%
68.7%
57.0%
6.7%

16.6%
68.6%
57.0%
6.7%

16.5%
68.6%
57.0%
6.7%

0.13
39.67
1.33
(0.00)
(0.00)
0.38
0.05
0.78
0.23
10.1%
26.61%

0.19
29.00
1.50
0.00
0.01
0.43
0.08
0.90
0.22
11.4%
21.95%

0.21

0.24

0.26

0.29

0.32

0.36

0.40

1.73
0.00
0.01
0.43
0.09
1.02
0.22
11.4%
22.0%

1.99
0.00
0.01
0.43
0.10
1.17
0.22
11.4%
22.0%

2.25
0.00
0.01
0.43
0.11
1.32
0.22
11.4%
22.0%

2.53
0.00
0.01
0.43
0.12
1.50
0.22
11.4%
22.0%

2.83
0.00
0.01
0.43
0.14
1.69
0.22
11.4%
22.0%

3.15
0.00
0.01
0.43
0.15
1.90
0.22
11.4%
22.0%

3.50
0.00
0.01
0.43
0.17
2.14
0.22
11.4%
22.0%

2013

2014

73.2%
16.5%
11.3%

73.2%
16.5%
11.3%

1.61
1.11
928.9
0.38
0.49

1.62
1.13
1,070.0
0.38
0.53

4.78
75.3
3.84
93.7
3.51
102.6
169.0
66.4

4.78
75.3
3.84
93.7
3.51
102.6
169.0
66.4

9.3%
23.3%
18.4%

9.2%
23.3%
18.1%

16.5%
70.0%
0.98
0.80
2.03
18.4%

16.5%
70.0%
0.98
0.79
2.03
18.1%

0.28
0.17
0.74
0.26
0.35
51.7

0.28
0.17
0.74
0.26
0.35
51.7

16.5%
68.6%
57.0%
6.7%

16.5%
68.6%
57.0%
6.7%

0.44

0.49

3.88
0.00
0.01
0.43
0.19
2.40
0.22
11.4%
22.0%

4.28
0.00
0.01
0.43
0.21
2.68
0.22
11.4%
22.0%

Smith and Nephew Valuation


Pound sterling Millions - Fiscal Year End 31 December
Year

2005

2006

2007

Risk Free Rate

5.0%
6%
0.7
9.2%

5.0%
6%
0.7
9.2%

5.0%
6%
0.7
9.2%

75.5
69.1
4852.1
5.175

84.4
83.7

94.9
94.8

186.6
170.9
10841.8
11.562

187.8
186.2

214.0
213.9

3.3%
7.60%
166.6
154.8
13598.4
311.1
14.170

3.3%
7.44%
139.9
139.2

3.3%
7.31%
161.6
161.6

Market Risk Premium


Beta
Required Return on Equity (re )
Sustainable Growth Rate

Dividend Discount Model


Dividends
Present Value - Year
Total Present Value
Present Value per share
Value of firm using FCFE
FCFE
Present Value - Year
Total Present Value
Present Value per share
Value of firm using FCFF
After-Tax Return on Debt
WACC
FCFF
Present Value for respective year
Total Present Value
Value of Debt
Present Value per share

Price to earning ratio

EV
EV/EBITDA
Daily market rate

5.429
2000
3,142.82
13.97
(1+x)^365 =
0.024115%

Dividend Discount Model


Share price as on 18th May in per share

5.344

FCFE
Share price as on 18th May in per share

11.942

FCFF
Share price as on 18th May in per share

14.636

EV/EBITDA

18.683

2001
2002
4,194.52 3,964.49
19.57
17.63
1+ re

EV as in 2005
Enterprise Value per share

5729.314
6.110

2008

2009

2010

2011

2012

2013

2014

5.0%
6%
0.7
9.2%

5.0%
6%
0.7
9.2%

5.0%
6%
0.7
9.2%

5.0%
6%
0.7
9.2%

5.0%
6%
0.7
9.2%

5.0%
6%
0.7
9.2%

5.0%
6%
0.7
9.2%
4.0%

105.3
105.3

117.0
117.0

130.1
130.1

144.5
144.5

160.3
160.3

177.4
177.4

196.0
3769.9

239.1
239.1

266.5
266.5

295.8
295.8

327.1
327.1

360.8
360.8

397.0
397.0

436.0
8384.6

3.3%
7.23%
187.5
187.5

3.3%
7.18%
210.6
210.6

3.3%
7.13%
235.3
235.3

3.3%
7.10%
261.7
261.7

3.3%
7.07%
290.1
290.1

3.3%
7.05%
320.7
320.7

3.3%
7.04%
353.7
11636.8

2003
4,663.23
18.07

2004
5,300.76
22.50

18.35

FTSE 100 PRICES


Date

Open

High

Low

Close

Avg Vol

Adj Close*

9-May-05

4,918.90

4,929.10

4,868.20

4,893.20 ##########

4,893.20

3-May-05

4,801.70

4,924.60

4,801.70

4,918.90 ##########

4,918.90

25-Apr-05

4,849.30

4,879.60

4,773.70

4,801.70 ##########

4,801.70

18-Apr-05

4,891.60

4,891.60

4,794.80

4,849.30 ##########

4,849.30

11-Apr-05

4,983.60

4,983.60

4,891.60

4,891.60 ##########

4,891.60

4-Apr-05

4,914.00

4,994.10

4,877.00

4,983.60 ##########

4,983.60

29-Mar-05

4,922.50

4,942.00

4,886.50

4,914.00 ##########

4,914.00

21-Mar-05

4,923.30

4,952.20

4,887.20

4,922.50 ##########

4,922.50

14-Mar-05

4,982.00

5,006.10

4,920.00

4,923.30 ##########

4,923.30

7-Mar-05

5,036.30

5,041.30

4,956.80

4,982.00 ##########

4,982.00

28-Feb-05

5,006.80

5,042.00

4,965.90

5,036.30 ##########

5,036.30

21-Feb-05

5,057.20

5,077.80

4,970.80

5,006.80 ##########

5,006.80

14-Feb-05

5,044.20

5,077.60

5,030.50

5,057.20 ##########

5,057.20

7-Feb-05

4,941.50

5,045.00

4,941.50

5,044.20 ##########

5,044.20

31-Jan-05

4,832.80

4,947.40

4,832.80

4,941.50 ##########

4,941.50

24-Jan-05

4,803.30

4,860.40

4,770.10

4,832.80 ##########

4,832.80

17-Jan-05

4,820.80

4,852.80

4,783.30

4,803.30 ##########

4,803.30

10-Jan-05

4,854.10

4,858.90

4,765.40

4,820.80 ##########

4,820.80

4-Jan-05

4,814.30

4,863.50

4,806.00

4,854.10 ##########

4,854.10

29-Dec-04

4,798.10

4,826.20

4,787.40

4,814.30 529,168,138

4,814.30

20-Dec-04

4,696.80

4,807.80

4,696.80

4,798.10 ##########

4,798.10

13-Dec-04

4,694.00

4,755.00

4,688.70

4,696.80 ##########

4,696.80

6-Dec-04

4,747.90

4,747.90

4,675.00

4,694.00 ##########

4,694.00

29-Nov-04

4,741.50

4,791.00

4,696.80

4,747.90 ##########

4,747.90

22-Nov-04

4,760.80

4,767.70

4,713.60

4,741.50 ##########

4,741.50

15-Nov-04

4,793.90

4,823.80

4,756.50

4,760.80 ##########

4,760.80

8-Nov-04

4,739.80

4,798.70

4,706.40

4,793.90 ##########

4,793.90

1-Nov-04

4,624.20

4,761.90

4,624.20

4,739.80 ##########

4,739.80

25-Oct-04

4,615.40

4,663.40

4,551.60

4,624.20 ##########

4,624.20

18-Oct-04

4,622.70

4,675.80

4,592.20

4,615.40 ##########

4,615.40

11-Oct-04

4,698.90

4,706.90

4,605.80

4,622.70 ##########

4,622.70

4-Oct-04

4,659.60

4,732.90

4,659.60

4,698.90 ##########

4,698.90

27-Sep-04

4,578.10

4,663.90

4,528.10

4,659.60 ##########

4,659.60

20-Sep-04

4,591.00

4,630.70

4,557.20

4,578.10 ##########

4,578.10

13-Sep-04

4,545.00

4,602.10

4,539.00

4,591.00 ##########

4,591.00

6-Sep-04

4,550.80

4,574.00

4,529.60

4,545.00 ##########

4,545.00

31-Aug-04

4,490.10

4,553.40

4,458.80

4,550.80 ##########

4,550.80

23-Aug-04

4,369.20

4,490.10

4,369.20

4,490.10 ##########

4,490.10

16-Aug-04

4,301.50

4,381.40

4,283.00

4,369.20 ##########

4,369.20

9-Aug-04

4,337.90

4,356.90

4,289.60

4,301.50 ##########

4,301.50

2-Aug-04

4,413.10

4,432.50

4,337.90

4,337.90 ##########

4,337.90

26-Jul-04

4,326.30

4,425.30

4,283.20

4,413.10 ##########

4,413.10

19-Jul-04

4,339.20

4,391.50

4,297.50

4,326.30 ##########

4,326.30

x - axis

-0.00522
0.024408
-0.00982
-0.00865
-0.01846
0.014164
-0.00173
-0.00016
-0.01178
-0.01078
0.005892
-0.00997
0.002577
0.020783
0.022492
0.006142
-0.00363
-0.00686
0.008267
0.003376
0.021568
0.000597
-0.01135
0.00135
-0.00405
-0.0069
0.011414
0.024999
0.001907
-0.00158
-0.01622
0.008434
0.017802
-0.00281
0.010121
-0.00127
0.013519
0.027671
0.015739
-0.00839
-0.01704
0.020063
-0.00297

12-Jul-04

4,393.20

4,395.60

4,324.50

4,339.20 ##########

4,339.20

5-Jul-04

4,407.40

4,423.30

4,324.10

4,393.20 ##########

4,393.20

28-Jun-04

4,494.10

4,535.10

4,398.30

4,407.40 ##########

4,407.40

21-Jun-04

4,505.80

4,516.70

4,459.80

4,494.10 ##########

4,494.10

14-Jun-04

4,484.00

4,510.50

4,430.30

4,505.80 ##########

4,505.80

7-Jun-04

4,454.40

4,515.20

4,454.40

4,484.00 ##########

4,484.00

1-Jun-04

4,430.70

4,462.10

4,400.70

4,454.40 ##########

4,454.40

24-May-04

4,431.40

4,471.30

4,396.60

4,430.70 ##########

4,430.70

17-May-04

4,441.80

4,471.80

4,363.00

4,431.40 ##########

4,431.40

10-May-04

4,498.40

4,498.40

4,395.20

4,441.80 ##########

4,441.80

4-May-04

4,489.70

4,573.70

4,463.20

4,498.40 ##########

4,498.40

26-Apr-04

4,570.00

4,586.90

4,489.70

4,489.70 ##########

4,489.70

19-Apr-04

4,537.30

4,601.60

4,519.80

4,570.00 ##########

4,570.00

13-Apr-04

4,489.70

4,540.20

4,456.20

4,537.30 ##########

4,537.30

5-Apr-04

4,465.60

4,504.70

4,451.40

4,489.70 ##########

4,489.70

29-Mar-04

4,357.50

4,471.30

4,357.50

4,465.60 ##########

4,465.60

22-Mar-04

4,417.70

4,417.70

4,291.30

4,357.50 ##########

4,357.50

15-Mar-04

4,467.40

4,471.20

4,394.60

4,417.70 ##########

4,417.70

8-Mar-04

4,547.10

4,562.00

4,374.50

4,467.40 ##########

4,467.40

1-Mar-04

4,492.20

4,566.20

4,492.20

4,547.10 ##########

4,547.10

23-Feb-04

4,515.00

4,556.90

4,476.70

4,492.20 ##########

4,492.20

16-Feb-04

4,412.00

4,549.60

4,389.90

4,515.00 ##########

4,515.00

9-Feb-04

4,402.70

4,436.80

4,370.20

4,412.00 ##########

4,412.00

6-Feb-04

4,384.40

4,407.50

4,384.10

4,402.70 ##########

4,402.70

2-Feb-04

4,390.70

4,411.60

4,357.40

4,402.70 ##########

4,402.70

26-Jan-04

4,460.80

4,482.50

4,390.70

4,390.70 ##########

4,390.70

19-Jan-04

4,487.90

4,531.40

4,438.60

4,460.80 ##########

4,460.80

12-Jan-04

4,466.30

4,491.70

4,431.10

4,487.90 ##########

4,487.90

5-Jan-04

4,510.20

4,522.90

4,445.10

4,466.30 ##########

4,466.30

29-Dec-03

4,444.70

4,518.00

4,432.80

4,510.20 498,931,852

4,510.20

22-Dec-03

4,412.30

4,457.40

4,392.40

4,444.70 799,346,549

4,444.70

15-Dec-03

4,347.60

4,427.80

4,329.00

4,412.30 ##########

4,412.30

8-Dec-03

4,367.00

4,407.50

4,312.50

4,347.60 ##########

4,347.60

1-Dec-03

4,342.60

4,416.50

4,337.70

4,367.00 ##########

4,367.00

24-Nov-03

4,319.00

4,423.60

4,319.00

4,342.60 ##########

4,342.60

17-Nov-03

4,397.00

4,397.00

4,270.50

4,319.00 ##########

4,319.00

10-Nov-03

4,376.90

4,412.90

4,313.50

4,397.00 ##########

4,397.00

3-Nov-03

4,287.60

4,389.20

4,283.40

4,376.90 ##########

4,376.90

27-Oct-03

4,239.00

4,332.90

4,238.10

4,287.60 ##########

4,287.60

20-Oct-03

4,344.00

4,377.60

4,212.50

4,239.00 ##########

4,239.00

13-Oct-03

4,311.00

4,393.80

4,310.10

4,344.00 ##########

4,344.00

6-Oct-03

4,274.00

4,327.00

4,241.70

4,311.00 ##########

4,311.00

29-Sep-03

4,157.10

4,285.40

4,081.80

4,274.00 ##########

4,274.00

22-Sep-03

4,257.00

4,265.30

4,146.40

4,157.10 ##########

4,157.10

15-Sep-03

4,237.80

4,329.60

4,237.80

4,257.00 ##########

4,257.00

8-Sep-03

4,257.20

4,298.00

4,227.20

4,237.80 ##########

4,237.80

1-Sep-03

4,161.10

4,279.10

4,161.10

4,257.20 ##########

4,257.20

26-Aug-03

4,225.90

4,229.00

4,161.10

4,161.10 ##########

4,161.10

18-Aug-03

4,247.30

4,286.90

4,196.50

4,225.90 ##########

4,225.90

11-Aug-03

4,147.80

4,266.40

4,147.80

4,247.30 ##########

4,247.30

4-Aug-03

4,098.40

4,160.70

4,044.90

4,147.80 ##########

4,147.80

-0.01229
-0.00322
-0.01929
-0.0026
0.004862
0.006645
0.005349
-0.00016
-0.00234
-0.01258
0.001938
-0.01757
0.007207
0.010602
0.005397
0.024808
-0.01363
-0.01113
-0.01753
0.012221
-0.00505
0.023345
0.002112
0
0.002733
-0.01571
-0.00604
0.004836
-0.00973
0.014737
0.007343
0.014882
-0.00444
0.005619
0.005464
-0.01774
0.004592
0.020828
0.011465
-0.02417
0.007655
0.008657
0.028121
-0.02347
0.004531
-0.00456
0.023095
-0.01533
-0.00504
0.023989
0.012053

28-Jul-03

4,131.20

4,183.00

4,096.70

4,098.40 ##########

4,098.40

21-Jul-03

4,073.20

4,155.20

4,043.50

4,131.20 ##########

4,131.20

14-Jul-03

4,058.10

4,135.90

4,031.90

4,073.20 ##########

4,073.20

7-Jul-03

4,021.50

4,088.20

4,013.70

4,058.10 ##########

4,058.10

30-Jun-03

4,067.80

4,099.00

3,951.50

4,021.50 ##########

4,021.50

23-Jun-03

4,160.10

4,160.10

4,029.20

4,067.80 ##########

4,067.80

16-Jun-03

4,134.10

4,218.80

4,112.40

4,160.10 ##########

4,160.10

9-Jun-03

4,150.80

4,193.60

4,101.10

4,134.10 ##########

4,134.10

2-Jun-03

4,048.10

4,178.50

4,048.10

4,150.80 ##########

4,150.80

27-May-03

3,979.80

4,096.00

3,920.20

4,048.10 ##########

4,048.10

19-May-03

4,049.00

4,049.00

3,907.80

3,979.80 ##########

3,979.80

12-May-03

3,969.40

4,080.80

3,941.10

4,049.00 ##########

4,049.00

6-May-03

3,952.60

4,038.50

3,912.80

3,969.40 ##########

3,969.40

28-Apr-03

3,870.20

3,976.20

3,855.50

3,952.60 ##########

3,952.60

22-Apr-03

3,889.20

3,997.30

3,859.90

3,870.20 ##########

3,870.20

14-Apr-03

3,808.10

3,967.80

3,800.70

3,889.20 ##########

3,889.20

7-Apr-03

3,814.40

3,962.20

3,803.20

3,808.10 ##########

3,808.10

31-Mar-03

3,708.50

3,841.70

3,580.90

3,814.40 ##########

3,814.40

24-Mar-03

3,861.10

3,861.10

3,660.40

3,708.50 ##########

3,708.50

17-Mar-03

3,601.80

3,881.70

3,525.30

3,861.10 ##########

3,861.10

10-Mar-03

3,491.60

3,612.90

3,277.50

3,601.80 ##########

3,601.80

3-Mar-03

3,655.60

3,714.90

3,467.20

3,491.60 ##########

3,491.60

24-Feb-03

3,727.10

3,746.50

3,535.10

3,655.60 ##########

3,655.60

17-Feb-03

3,611.90

3,747.00

3,611.90

3,727.10 ##########

3,727.10

10-Feb-03

3,599.20

3,683.60

3,568.10

3,611.90 ##########

3,611.90

3-Feb-03

3,567.40

3,698.90

3,563.90

3,599.20 ##########

3,599.20

27-Jan-03

3,603.70

3,603.70

3,391.50

3,567.40 ##########

3,567.40

20-Jan-03

3,820.60

3,853.40

3,583.70

3,603.70 ##########

3,603.70

13-Jan-03

3,974.10

4,020.20

3,820.60

3,820.60 ##########

3,820.60

6-Jan-03

4,004.90

4,025.50

3,865.80

3,974.10 ##########

3,974.10

30-Dec-02

3,829.40

4,027.60

3,805.10

4,004.90 567,070,496

4,004.90

23-Dec-02

3,889.90

3,957.70

3,822.20

3,829.40 350,310,997

3,829.40

16-Dec-02

3,878.10

3,999.80

3,803.40

3,889.90 ##########

3,889.90

9-Dec-02

4,013.50

4,039.80

3,839.40

3,878.10 ##########

3,878.10

2-Dec-02

4,169.40

4,218.60

3,931.90

4,013.50 ##########

4,013.50

25-Nov-02

4,175.20

4,206.80

4,058.30

4,169.40

4,169.40

18-Nov-02

4,091.60

4,224.80

4,069.30

4,175.20

4,175.20

11-Nov-02

4,034.60

4,117.40

3,961.00

4,091.60

4,091.60

4-Nov-02

3,997.00

4,192.40

3,997.00

4,034.60

4,034.60

1-Nov-02

4,039.70

4,039.70

3,953.30

3,997.00

3,997.00

28-Oct-02

4,051.10

4,147.90

3,919.40

3,997.00 ##########

3,997.00

21-Oct-02

4,130.50

4,184.60

4,006.90

4,051.10

4,051.10

14-Oct-02

3,953.40

4,197.50

3,908.10

4,130.50

4,130.50

7-Oct-02

3,813.80

3,953.40

3,663.40

3,953.40

3,953.40

30-Sep-02

3,907.20

3,961.50

3,669.70

3,813.80

3,813.80

23-Sep-02

3,860.10

3,925.20

3,609.90

3,907.20

3,907.20

16-Sep-02

4,008.00

4,150.20

3,755.60

3,860.10

3,860.10

9-Sep-02

4,107.20

4,246.40

3,927.80

4,008.00

4,008.00

2-Sep-02

4,227.30

4,227.30

3,918.60

4,107.20

4,107.20

27-Aug-02

4,389.80

4,464.00

4,173.50

4,227.30

4,227.30

19-Aug-02

4,330.00

4,466.40

4,307.70

4,389.80

4,389.80

-0.00794
0.014239
0.003721
0.009101
-0.01138
-0.02219
0.006289
-0.00402
0.02537
0.017162
-0.01709
0.020053
0.00425
0.021291
-0.00489
0.021297
-0.00165
0.028556
-0.03952
0.071992
0.031561
-0.04486
-0.01918
0.031895
0.003529
0.008914
-0.01007
-0.05677
-0.03863
-0.00769
0.04583
-0.01555
0.003043
-0.03374
-0.03739
-0.00139
0.020432
0.014128
0.009407
0
-0.01335
-0.01922
0.044797
0.036604
-0.0239
0.012202
-0.0369
-0.02415
-0.02841
-0.03702
0.013811

12-Aug-02

4,322.40

4,382.30

4,158.30

4,330.00

4,330.00

5-Aug-02

4,075.50

4,322.40

3,900.70

4,322.40

4,322.40

29-Jul-02

4,016.60

4,306.10

4,016.60

4,075.50

4,075.50

22-Jul-02

4,098.30

4,098.30

3,625.90

4,016.60

4,016.60

15-Jul-02

4,224.10

4,301.20

3,860.30

4,098.30

4,098.30

8-Jul-02

4,615.60

4,636.10

4,171.00

4,224.10

4,224.10

1-Jul-02

4,656.40

4,708.70

4,392.60

4,615.60

4,615.60

24-Jun-02

4,605.30

4,657.10

4,442.90

4,656.40

4,656.40

17-Jun-02

4,630.80

4,775.10

4,506.30

4,605.30

4,605.30

10-Jun-02

4,920.40

4,948.30

4,565.40

4,630.80

4,630.80

5-Jun-02

5,085.10

5,085.10

4,851.20

4,920.40

4,920.40

27-May-02

5,169.10

5,187.90

5,016.90

5,085.10

5,085.10

20-May-02

5,218.00

5,246.50

5,129.40

5,169.10

5,169.10

13-May-02

5,171.20

5,282.20

5,147.50

5,218.00

5,218.00

7-May-02

5,203.10

5,216.60

5,082.70

5,171.20

5,171.20

29-Apr-02

5,159.00

5,236.00

5,123.70

5,203.10

5,203.10

22-Apr-02

5,243.60

5,243.60

5,116.00

5,159.00

5,159.00

15-Apr-02

5,161.00

5,292.30

5,153.20

5,243.60

5,243.60

8-Apr-02

5,233.60

5,243.70

5,136.30

5,161.00

5,161.00

2-Apr-02

5,271.80

5,271.80

5,187.70

5,233.60

5,233.60

y = 0.6986x + 0.0019

0.6986

% age change in stock price

Beta

0.001758
0.060582
0.014664
-0.01994
-0.02978
-0.08482
-0.00876
0.011096
-0.00551
-0.05886
-0.03239
-0.01625
-0.00937
0.00905
-0.00613
0.008548
-0.01613
0.016005
-0.01387

0.15
0.1
0.05
0

-0.08

-0.06

-0.04

-0.02
-0.05
-0.1
-0.15
% age change in index

PRICES SMITH & NEPHEW


y - axis

-0.00218
-0.00329
0.025165
0.002925
-0.01505
0.062511
-0.07282
-0.00462
0.01215
-0.00794
0.009755
-0.02
-0.01184
0.009149
0.054816
-0.0084
0.022485
-0.01902
-0.02725
0.013245
0.016346
-0.03256
0.011289
-0.01391
0.016981
0.015442
0.01842
0.098889
-0.02939
0.010515
-0.05842
-0.01584
0.05691
-0.01949
-0.03604
0.014216
0.031739
0.015726
0.007106
-0.02067
-0.11712
-0.00735
-0.02053

Date

Open

High

Low

Close

Avg Vol

Adj Close*

9-May-05

538.5

542

528.5

534.79

6,536,170

531.59

3-May-05

543

549.45

528.5

535.96

8,687,257

532.76

25-Apr-05

525.5

543

520

537.73

8,111,408

534.51

18-Apr-05

514

529.17

513.06

524.53

5,603,070

521.39

11-Apr-05

528

561.16

519.45

523

6,201,258

519.87

4-Apr-05

497

535.5

493.5

530.99

12,448,892

527.81

29-Mar-05

528

549.5

490.5

499.75

14,431,155

496.76

21-Mar-05

540

544.5

527

539

7,789,392

535.77

14-Mar-05

534

547.5

528

541.5

8,330,094

538.26

7-Mar-05

539.5

541.15

523

535

6,090,996

531.8

28-Feb-05

539

547

533.5

539.28

7,442,232

536.05

21-Feb-05

547.77

547.77

532.25

534.07

6,110,284

530.88

14-Feb-05

552.5

557

536

544.97

6,286,006

541.71

7-Feb-05

549.5

561.5

543

551.5

9,535,250

548.2

31-Jan-05

514

555.45

514

546.5

16,962,330

543.23

24-Jan-05

517.5

527.18

513.47

518.1

10,264,930

515

17-Jan-05

510.5

528.13

510

522.49

8,305,832

519.36

11-Jan-05

523

529.5

508

511

10,669,335

507.94

4-Jan-05

535

539.5

508.45

520.91

6,617,212

517.8

29-Dec-04

527.5

535.5

525.5

535.5

2,790,195

532.3

20-Dec-04

525

539.5

510.05

528.5

5,568,532

525.34

13-Dec-04

536.5

559.13

519

520

8,682,932

516.89

6-Dec-04

530

546.5

526

537.5

4,739,120

534.28

29-Nov-04

536

548

530

531.5

4,653,940

528.32

22-Nov-04

526.5

539

520.5

539

6,092,760

535.77

15-Nov-04

522

550

519.95

530

6,377,406

526.83

8-Nov-04

514.5

527

503

521.94

7,822,760

518.82

1-Nov-04

466

528.13

458.13

512.5

19,542,872

507.56

25-Oct-04

476

476

450

466.38

14,652,362

461.88

18-Oct-04

477.5

499.88

475

480.5

6,789,768

475.87

11-Oct-04

501

511

468.5

475.5

11,232,026

470.91

4-Oct-04

521

525.5

502

505

7,673,232

500.13

27-Sep-04

482.5

520

482.5

513.13

9,806,682

508.18

20-Sep-04

496

497

482

485.5

8,725,754

480.82

13-Sep-04

510.5

517

474.5

495.15

10,191,964

490.37

6-Sep-04

512.5

522.75

503

513.66

4,966,078

508.71

31-Aug-04

489

516.25

488.5

506.46

8,009,202

501.58

23-Aug-04

490

502.51

479.5

490.88

7,114,848

486.15

16-Aug-04

473.45

487.5

464

483.28

7,178,312

478.62

9-Aug-04

487

523.56

471.5

479.87

7,027,802

475.24

2-Aug-04

556.5

557.5

450

490

27,941,631

485.27

26-Jul-04

559

561.5

533.5

555

7,483,418

549.65

19-Jul-04

560

577.5

547

559.11

8,377,538

553.72

-0.06452
0.030743
-0.00328
0.011668
0.015885
-0.01207
0.022692
0.009513
-0.01721
0.00179
0.004363
-0.03778
0.033495
0.009991
0.035935
0.037119
-0.00188
0.012369
-0.03578
0.061861
0.004069
-0.00454
0.024439
0
0.046451
0.00569
0.021249
0.024448
-0.03274
0.031064
0.006571
-0.03115
-0.00302
0.051512
-0.02869
-0.0101
-0.03329
0.011646
0.05258
0.012093
0.006753
0.050391
0.068685
-0.02192
-0.02505
-0.0105
0.027027
0.027077
-0.01597
-0.02257
0.102312

12-Jul-04

609

613

566.5

570.83

8,688,352

565.33

5-Jul-04

600.5

617.5

586

610.2

4,257,000

604.32

28-Jun-04

591.5

603.5

586

592

4,016,604

586.29

21-Jun-04

588

607.5

582

593.95

5,485,830

588.22

14-Jun-04

580

591

570.5

587.1

4,077,122

581.44

7-Jun-04

582

592.81

574.5

577.92

4,232,085

572.35

1-Jun-04

580.5

595

566

584.98

5,711,172

579.34

24-May-04

570

587

566.5

572

5,451,492

566.48

17-May-04

566.35

577.13

556.5

566.61

4,735,010

561.15

10-May-04

587.5

587.5

564.12

576.53

6,565,296

570.97

4-May-04

573

599.2

560.5

575.5

11,682,365

566.86

26-Apr-04

599

599

563.62

573

7,402,284

564.4

19-Apr-04

570.62

600.5

566

595.5

7,024,638

586.56

13-Apr-04

575

584.5

548

576.2

6,938,072

567.55

5-Apr-04

559

577

547.5

570.5

9,207,840

561.93

29-Mar-04

530.5

562

525.5

550.71

8,282,050

542.44

22-Mar-04

527

538.5

521

531

8,285,964

523.03

15-Mar-04

527

540.25

510

532

7,041,166

524.01

8-Mar-04

542.5

542.73

508.25

525.5

10,667,008

517.61

1-Mar-04

514

549

514

545

9,059,468

536.82

23-Feb-04

504.28

537

504

513.25

5,597,306

505.54

16-Feb-04

503.93

529

503.75

511.17

5,597,486

503.5

9-Feb-04

503.75

522

498.75

513.5

6,264,476

505.79

6-Feb-04

493.5

503.17

493.25

501.25

10,111,000

493.72

2-Feb-04

483

504

469.25

501.25

8,146,273

493.72

26-Jan-04

475.81

491

465.66

479

7,440,128

471.81

19-Jan-04

466.28

485

456

476.29

8,889,956

469.14

12-Jan-04

454.75

470

437.5

466.38

8,758,736

459.38

5-Jan-04

464.75

473.71

453.5

455.25

4,098,938

448.42

29-Dec-03

456.75

474.5

452.25

470.66

1,274,253

463.59

22-Dec-03

449

469

449

456.48

3,117,140

449.62

15-Dec-03

480.5

480.5

450.06

453.5

8,173,204

446.69

8-Dec-03

469.17

480

455.68

468.08

4,531,088

461.05

1-Dec-03

446.39

475

446

469.5

6,155,912

462.45

24-Nov-03

453.1

464

440

446.5

4,313,844

439.8

17-Nov-03

457.25

465.25

442.25

459.69

7,426,734

452.79

10-Nov-03

472

481.84

457.25

464.38

5,302,332

457.41

3-Nov-03

469.71

489.75

460

480.37

5,805,846

473.16

27-Oct-03

458.5

484.5

451

474.84

7,001,416

467.71

20-Oct-03

444.5

455.75

435

451.12

6,088,766

444.35

13-Oct-03

440.3

450.75

438.4

445.73

7,563,062

439.04

6-Oct-03

418.35

454.5

416

442.74

12,442,806

436.09

29-Sep-03

393.37

423

391.59

421.5

7,486,998

415.17

22-Sep-03

403

429.84

391

394.41

5,768,648

388.49

15-Sep-03

411.6

415

392

403.25

13,410,338

397.2

8-Sep-03

373.1

420

369.41

413.61

7,188,168

407.4

1-Sep-03

406.98

418

400

418

9,170,632

411.72

26-Aug-03

393.5

413

380.87

407

10,888,955

400.89

18-Aug-03

405.85

413.97

392

396.27

7,059,136

390.32

11-Aug-03

418

424

394.5

402.7

8,370,704

396.65

4-Aug-03

367.21

420.78

365.13

412

15,083,088

405.81

0.034716
-0.01282
0.000301
0.045232
-0.028
0.003176
-0.04482
0.006267
0.009053
-0.01906
-0.09708
0.009447
-0.02382
0.011064
0.005009
0.010951
0.041062
0.002427
0.055397
0.071878
-0.02341
-0.02186
0.045953
0.002492
0.016601
-0.00766
-0.05583
-0.0154
-0.03076
-0.00903
0.014
0.007859
-0.02276
0.038822
-0.00432
-0.01543
0.016
0.05042
-0.03433
0
-0.04692
0.021408
-0.02187
-0.00873
0.025314
0.002283
0.026419
-0.0087
0.005368
-0.0004
-0.02122

28-Jul-03

367.13

388.31

355

373.76

6,559,290

21-Jul-03

376.25

376.25

353.25

361.22

3,862,778

368.15
355.8

14-Jul-03

366

375

350

365.91

4,070,464

360.42

7-Jul-03

350.12

385.14

343.62

365.8

6,444,310

360.3

30-Jun-03

355.11

359.65

340.5

349.97

5,444,598

344.72

23-Jun-03

380.17

380.17

347

360.05

7,743,630

354.64

16-Jun-03

371.81

395

358.91

358.91

7,921,774

353.52

9-Jun-03

368.5

380.5

357.25

375.75

7,561,586

370.11
367.8

2-Jun-03

369.87

375

350.77

373.41

9,995,650

27-May-03

374.63

382

364.5

370.06

8,822,650

364.5

19-May-03

418.39

419.5

361.04

377.25

29,378,342

371.59

12-May-03

418.75

419.5

392

417.81

6,957,382

411.54

6-May-03

422.71

427

405

413.9

6,645,180

404.66

28-Apr-03

414.03

433

405

424

8,652,680

414.54

22-Apr-03

428

432.25

411

419.36

6,903,740

410

14-Apr-03

414.75

422.25

396

417.27

8,553,830

407.96

7-Apr-03

400

416.5

397.41

412.75

8,489,216

403.54

31-Mar-03

400

404

383

396.47

8,281,926

387.62

24-Mar-03

374

402.5

355.5

395.51

8,888,162

386.68

17-Mar-03

366.98

401

336.37

374.75

17,038,624

366.39

10-Mar-03

358

374

332.75

349.62

6,860,214

341.82

3-Mar-03

370

372.5

342.5

358

5,441,344

350.01

24-Feb-03

352.35

372

338.5

366

5,298,964

357.83

17-Feb-03

350.59

361.88

330

349.92

6,086,256

342.11

10-Feb-03

358.5

358.5

340

349.05

4,515,858

341.26

3-Feb-03

349.91

369.75

331

343.35

5,880,992

335.69

27-Jan-03

350

355

325

346

8,682,820

338.28

20-Jan-03

380.98

380.98

361

366.46

7,581,220

358.28

13-Jan-03

378.4

384.25

362.75

372.19

5,782,148

363.88

6-Jan-03

390

395

377.45

384

4,829,486

375.43

30-Dec-02

382.72

390

373

387.5

2,341,707

378.85

23-Dec-02

380

395.87

373

382.15

2,483,813

373.63

16-Dec-02

388.09

400.5

373.5

379.17

7,564,722

370.71

9-Dec-02

381.5

394.25

371

388

5,262,744

379.34

2-Dec-02

387.03

387.03

361

373.5

4,270,742

365.17

25-Nov-02

386.5

386.5

365

375.12

4,380,048

366.75

18-Nov-02

360

395

359.76

381

7,575,940

372.5

11-Nov-02

371.25

380

349

375

6,031,350

366.63

4-Nov-02

379.19

395.25

351

357

7,876,508

347.36

1-Nov-02

380.08

382.87

366

369.69

8,687,860

359.71

28-Oct-02

400

400

366

369.69

7,788,083

359.71

21-Oct-02

386.92

404.5

379.5

387.89

4,931,600

377.42

14-Oct-02

405

410

374.6

379.76

5,920,126

369.5

7-Oct-02

391

405

368.68

388.25

5,088,960

377.77

30-Sep-02

374.86

415

369.96

391.67

6,614,996

381.1

23-Sep-02

382.75

383

360.25

382

5,864,984

371.69

16-Sep-02

364.93

390

350

381.13

7,899,436

370.84

9-Sep-02

359

392

359

371.32

3,146,010

361.29

2-Sep-02

365.5

380

336.92

374.58

4,041,232

364.46

27-Aug-02

377.5

391.5

350

372.58

4,555,257

362.52

19-Aug-02

390

396.48

364.25

372.73

3,723,050

362.67

0.011448
0.123746
0.019909
0.003053
0.005496
-0.06405
-0.0424
0.0133
0.004594
-0.01599
-0.06735
-0.02628
0.005031
-0.02728
0.00834
0.005633
0.061924
-0.06757
-0.00732

12-Aug-02

376.58

399

361.25

380.81

5,194,180

370.53

5-Aug-02

342.07

381.75

332.25

376.5

9,998,754

366.33

29-Jul-02

328.57

360

325.5

335.04

4,692,966

325.99

22-Jul-02

327.43

335

292

328.5

6,585,510

319.63

15-Jul-02

337.75

347.75

297

327.5

8,443,830

318.66

8-Jul-02

344.07

350

307.94

325.71

9,667,062

316.92

1-Jul-02

364.81

370.25

334

348

7,692,244

338.6

24-Jun-02

345.52

379.75

333.03

363.41

8,774,404

353.6

17-Jun-02

354.18

370

332.25

358.64

13,588,778

348.95

10-Jun-02

363.33

379.4

346.75

357

5,553,628

347.36

5-Jun-02

383

388

362

362.8

4,016,526

353.01

27-May-02

396.42

399.8

381

389

3,643,104

378.5

20-May-02

400

410

385.75

399.5

4,075,286

388.71

13-May-02

407.42

424

395

397.5

4,325,724

386.77

7-May-02

400.58

426

391.5

408.65

4,169,897

394.72

29-Apr-02

403.56

416.75

387.5

405.27

5,399,612

391.46

22-Apr-02

377

406.25

377

403

6,885,352

389.26

15-Apr-02

424

424

377.4

379.5

9,240,774

366.56

8-Apr-02

424

424

395.25

407

2,669,746

393.12

2-Apr-02

410

422.5

401

410

2,698,882

396.02

0.15
0.1
0.05
0
0

0.02

-0.05
-0.1
-0.15

% age change in index

0.04

0.06

0.08

Dupont analysis
120.0%

100.0%

years

80.0%

60.0%

40.0%

20.0%

0.0%
1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

3.50

3.00

2.50
Asset turnover

2.00

earning retention
ROE
operating margin

1.50

intrest burden
leverage

1.00

0.50

0.00
2010

2011

2012

2013

2014

ROE
2003
1.30
0.78
0.62
0.60
0.16

2004
1.53
1.19
0.63
0.69
0.13

2002
28.11%
70.00%
27.06%
20.64%
21.67%

2003
29.04%
6.80%
24.83%
23.28%
23.11%

2004
29.00%
13.74%
18.98%
23.82%
17.22%

Competitor EPS
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
EPS

J&J
Zimmer
Stryker
Biomet
Smith & Nephew

EPS
2002
1.17
0.71
0.47
0.48
0.12

2002

2003

2004

Years

Competitor ROE

ROE

company

80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2002

2003
Years

2004

J&J
Zimmer
Stryker
Biomet
Smith & Nephew

J&J
Zimmer
Stryker
Biomet
Smith & Nephew

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