Second Quarter and First Half 2021 Results

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: risks related to the impact of COVID, such as the depth and

longevity of its impact, government actions and other restrictive measures taken in response, material delays and cancellations of elective procedures,

reduced procedure capacity at medical facilities, restricted access for sales representatives to medical facilities, or our ability to execute business continuity

plans as a result of COVID; economic and financial conditions in the markets we serve, especially those affecting health care providers, payers and

customers (including, without limitation, as a result of COVID); 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 (including, without limitation, as a

result of COVID); 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, tax rate on trading results, trading cash flow, trading profit to cash

conversion ratio, EPSA, leverage ratio, and underlying growth are non-IFRS financial measures. The non-IFRS financial measures in this announcement are

explained and reconciled to the most directly comparable financial measure prepared in accordance with IFRS in our Second Quarter and Half Year 2021

Results announcement dated 29 July 2021.2

Key messages

3

Improved growth in Q2, as end markets continue to recover

On track for 2021 revenue and margin guidance

Delivering on our 2021 priorities:

• returning to top-line growth and recapturing momentum

• driving further operational improvement

• continuing to respond effectively to COVID

H1 2021 highlights

4*Underlying growth is a non-IFRS measure. Please see page 30 of this presentation for a reconciliation of underlying revenue growth to reported revenue growth.

Revenue$2,599m

21.3% underlying growth*

27.8% reported growth

Trading profit$459m

17.6% margin2020: $172m

EPSA38.8¢

2020: 13.4¢

DPS14.4¢

2020: 14.4¢

Q2 revenue by region$1,335m, 40.3% underlying, 48.2% reported

5

• Procedure volumes continued to recover as remaining restrictions lifted

• Surgical activity moving closer to normal, with variation by region

• Europe surgery volumes improved, despite restrictions early in the quarter

• Japan and Australia volumes slowing, with rising infection rates

• China end market volumes reflect maintained recovery, offset by distributor ordering patterns

• India, LatAm, Middle East volumes remain significantly COVID-affected

-4.7%

-31.8%

0.9%

-4.9%

7.1%

51.3%

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

-6.3%

-30.8%

-6.2% -6.2%-1.8%

40.1%

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

-17.9% -20.2%-14.5% -14.9%

21.8%16.2%

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

Quarterly underlying sales development by region

US$677m

Other established markets$422m

Emerging markets$236m

Q2 2021 underlying growth vs 2020Reflect 2020 peak impact of COVID on our business

6

Franchise split Franchise growth

27.2%

50.9%

43.4%

40.3%

Orthopaedics$557m

Advanced Wound

Management $387m

Sports Med & ENT $391m

Orthopaedics

AWM

Sports Med & ENT

Total

Q2 2021 underlying growth vs Q2 2019Two out of three Franchises back to 2019 levels

7

Geographical growthFranchise growth

-5.3%

-3.5%

2.3%

-1.0%

5.1%

1.3%

-6.2%

-1.0% Group

Emerging Markets

Other Established Markets

USOrthopaedics

AWM

Sports Med & ENT

Group

Orthopaedics $557m, 43.4% underlying*

8

Revenue performance

* Underlying growth rates are versus Q2 2020**Other reconstruction’ includes robotics capital sales, the orthopaedic joint reconstruction business acquired from Brainlab, and cement

Underlying growth by

quarter

Knees $226m +58.8% (US +75.6%, OUS +42.4%)

Hips $161m +37.2% (US +61.3%, OUS +18.4%)

Other Reconstruction** $21m +64.0%

Trauma & Extremities $149m +28.2%

Orthopaedics $557m +43.4%

-8.3%

-34.0%

-2.8%

-10.2%

1.6%

43.4%

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

Highlights

• Hips supported by ongoing OR3O rollout

• CORI◊

launched in India and Australia; regulatory approval in Japan

• EVOS◊, External Fixation and Extremities driving Trauma & Extremities

growth

Sports Medicine & ENT$391m, 50.9% underlying*

9

Revenue performance

Sports Medicine Joint Repair

$211m +55.9%

Arthroscopic EnablingTechnologies

$147m +45.5%

ENT $33m +45.2%

Sports Medicine & ENT $391m +50.9%

Underlying growth by

quarter

-9.5%

-33.3%

-4.5% -5.2%

10.4%

50.9%

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

* Underlying growth rates are versus Q2 2020

Highlights

• Strong recovery in both shoulder and meniscal repair

• US launches of FAST-FIX◊

FLEX in meniscal repair, and DOUBLEFLO◊

fluid management system

• Tonsil and ear tube markets showing slower recovery

Advanced Wound Management $387m, 27.2% underlying*

10

Revenue performance

Advanced Wound Care $186m +20.6%

Advanced Wound Bioactives

$132m +29.9%

Advanced Wound Devices $69m +42.8%

Advanced Wound Management

$387m +27.2%

Underlying growth by

quarter

-4.0%

-17.6%

-6.1% -4.4%

9.3%

27.2%

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

* Underlying growth rates are versus Q2 2020

Highlights

• All regions contributed to strong AWC growth

• Bioactives growth from acquired skin substitute products GRAFIX◊

and

STRAVIX◊

• RENASYS◊

continuing to win business in post-acute setting

11

H1 2021 financials

H1 revenue by franchiseAll franchises recovering

12

Reported growth 27.4% 32.9% 23.2% 27.8%

Underlying growth 19.2% 28.0% 18.0% 21.3%

H1 revenue by regionAll regions recovering

13

Reported growth 29.1% 27.2% 25.1% 27.8%

Underlying growth 26.0% 15.7% 19.2% 21.3%

14

2021$m

2020$m

Reportedgrowth

Revenue 2,599 2,035 27.8%

Gross profit 1,836 1,395 32%

Gross profit margin 70.6% 68.5%

Selling, general and admin (1,229) (1,089)

Research and development (148) (134)

Trading profit 459 172 166%

Trading profit margin 17.6% 8.5%

IFRS operating profit/(loss) 239 (5)

IFRS operating profit/(loss) margin 9.2% (0.2)%

Adjusted earnings per share ("EPSA") 38.8¢ 13.4¢ 189%

Earnings per share ("EPS") 23.4¢ 11.5¢ 104%

Dividend per share 14.4¢ 14.4¢ -

H1 trading income statementProfit recovering in line with expectations

2021$m

2020$m

Trading profit 459 172

Share based payment 23 15

Depreciation and amortisation 201 187

Lease liability repayments (28) (24)

Capital expenditure (175) (188)

Movements in working capital and other (76) (137)

Trading cash flow 404 25

Trading cash conversion 88% 14%

Restructuring, acquisition, legal and other (148) (112)

Net interest paid (38) (21)

Taxation paid (58) (31)

Free cash flow 160 (139)

H1 cash flowTrading cash conversion 88%

15

Strong balance sheet

16

Net debt includes lease liabilities

Leverage ratio:

1.8x 1.6x

17

• Targeting underlying revenue growth of 10-13%

− Hips to continue to outperform Knees

− Sports Medicine & ENT to rebound strongly

− AWM momentum to continue

• Trading margin range of 18-19%

− COVID impact on gross margin; partial offset from efficiency programmes

− Dilution relative to 2019 from investment in R&D (c.100bps), initial dilution from completed M&A (c.150bps)

− FX headwind relative to 2019 (c.100bps)

• Tax rate on trading results in the range of 18-19%

• Targets assume surgery volumes largely

unconstrained by COVID in H2 2021

Reconfirming 2021 outlook

18

Priorities for 2021

Priorities for 2021Return to top-line growth and recapture momentum

Driving sustainable revenue growth

19

Maximising portfolio potential

• Driving higher return from portfolio and growing recent launches

• Continuing to drive commercial excellence across franchises

Delivering value of the acquired assets

• Driving synergistic growth in Trauma & Extremities, Joint Repair, ENT and Bioactives

• Adding further value-creating opportunities focused on high-growth segments

Launching expanded pipeline of innovation

• High cadence of product launches across the franchises

• Further increase in R&D investment

Increased M&A activity from 2019 onwardsDelivering value from our acquired assets

20

Extremities and digital surgery Tucking in growth assets Extending the portfolio offering

Extremity Orthopaedics acquired from Integra LifeSciences

Sports Medicine& ENT

OrthopaedicsAdvanced Wound

Management

Progress with operational execution and growthDelivering value from our acquired assets

21

• Business case primarily driven by technology development

• S+N implants made available on KICK Navigation systems

• Bringing RI.HIP and RI.KNEE software to CORI

• Key project milestones expected to be met by end 2021

Extremity Orthopaedics

• S+N reps training on shoulder and ankle replacements from Q1

• New Extremities reps selling S+N trauma products

• Extremities portfolio growing well ahead of legacy trauma

• Targeting 2022 launch for next-generation shoulder*

Q1 2018 Q3 2018 Q1 2019 Q3 2019 Q1 2020 Q3 2020 Q1 2021

Quarterly REGENETEN sales

H1

2019

H2

2019

H1

2020

H2

2020

H1

2021

Trading profit by half yearSales

growth

Commercial synergies

Delivering innovation

Driving margin

* All innovation launches coming after relevant regulatory review, clearance and approval processes

Key pipeline progress in 2021Launching expanded pipeline of innovation

22

FAST-FIX◊ FLEXMeniscal Repair System

• Launch announced July 2021, first patients treated

• Bendable device gives better access to certain areas of the meniscus

• Enables access and treatment of ~43% of tears in stable adult knees

• Expected to help growth of the category, and extend differentiation of our Joint Repair portfolio

DOUBLEFLOInflow/Outflow Pump

• Launch announced April 2021

• Inflow and Outflow pumps for better control of fluid management

• Links to INTELLIO Connected Tower, can be controlled wirelessly through LENS App

• Enhances competitiveness of the tower as a whole

CORISurgical System

• Launched in India and Australia in Q2 2021; regulatory approval in Japan

• Addition of RI.HIP software to CORI, targeted for H2 2021*

• CORI Tensioner, for gap balancing in total knee replacements, targeted for H2 2021*

* All innovation launches coming after relevant regulatory review, clearance and approval processes

Drive further operational improvementProgress towards our five-year operations efficiency plan

23

Penang, Malaysia

Manufacturing network optimisation

✓ Announced plans to sell or close five smaller factories

✓ Changes will simplify the network, enable greater efficiency

✓ Construction of large-scale, high-technology facility in Malaysia almost complete, production to start in 2022

Key messages

24

Improved growth in Q2, as end markets continue to recover

On track for 2021 revenue and margin guidance

Delivering on our 2021 priorities:

• returning to top-line growth and recapturing momentum

• driving further operational improvement

• continuing to respond effectively to COVID

Appendices

25

Technical guidance

26

July 2021

Foreign exchange and acquisitions

Translational FX impact on revenue growth(1) c.2.5%

Acquisition impact on revenue growth c.1.9%

Non-trading items

Restructuring costs $145-155m

Acquisition and integration costs $35-45m

European Medical Device Regulation (MDR) compliance costs c. $60m

Other

Amortisation of acquisition intangibles $170-180m

Income from associates $15-20m

Net interest(2) c. $75m

Other finance costs c. $15m

Tax rate on trading result 18-19%

(1) Based on the foreign exchange rates prevailing on 23rd July 2021(2) Includes interest associated with IFRS 16 Leases

Franchise revenue analysis

2020 2021

Q1Growth

%

Q2Growth

%

Q3Growth

%

Q4Growth

%

Full YearGrowth

%

Q1Growth

%

Q2Growth

%

Q2Revenue

$m

Orthopaedics (8.3) (34.0) (2.8) (10.2) (14.0) 1.6 43.4 557

Knee Implants (10.6) (46.9) (9.5) (16.2) (21.0) (10.3) 58.8 226

Hip Implants (8.6) (26.9) 7.1 (0.5) (7.4) 9.1 37.2 161

Other Reconstruction 19.4 (51.5) (3.1) (45.6) (26.1) 17.7 64.0 21

Trauma & Extremities (7.1) (11.1) (1.4) (1.3) (5.1) 12.0 28.2 149

Sports Medicine & ENT (9.5) (33.3) (4.5) (5.2) (13.0) 10.4 50.9 391

Sports Medicine Joint Repair (7.1) (32.0) (2.7) (0.3) (10.2) 12.0 55.9 211

Arthroscopic Enabling Technologies (11.2) (32.1) (1.6) (5.0) (12.4) 11.7 45.5 147

ENT (15.2) (44.0) (24.8) (33.1) (29.7) (4.6) 45.2 33

Advanced Wound Management (4.0) (17.6) (6.1) (4.4) (8.1) 9.3 27.2 387

Advanced Wound Care (6.7) (14.6) (6.9) (2.1) (7.5) 4.5 20.6 186

Advanced Wound Bioactives (8.6) (18.7) (4.5) (9.9) (10.5) 26.7 29.9 132

Advanced Wound Devices 13.0 (23.7) (6.9) 0.2 (4.8) (3.2) 42.8 69

Total (7.6) (29.3) (4.2) (7.1) (12.1) 6.2 40.3 1,335

27All revenue growth rates are on an underlying basis and without adjustment for number of selling days.

Regional revenue analysis

28

2020 2021

Q1Growth

%

Q2Growth

%

Q3Growth

%

Q4Growth

%

Full YearGrowth

%

Q1Growth

%

Q2Growth

%

Q2Revenue

$m

US (4.7) (31.8) 0.9 (4.9) (10.1) 7.1 51.3 677

Other Established Markets(1) (6.3) (30.8) (6.2) (6.2) (12.3) (1.8) 40.1 422

Established Markets (5.4) (31.4) (1.8) (5.4) (11.0) 3.4 46.8 1,099

Emerging Markets (17.9) (20.2) (14.5) (14.9) (16.8) 21.8 16.2 236

Total (7.6) (29.3) (4.2) (7.1) (12.1) 6.2 40.3 1,335

(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

Q2 consolidated revenue analysis

29

Q22021

Q22020

Reportedgrowth

Underlying growth

Acquisitions/disposals

Currency impact

Consolidated revenue by franchise $m $m % % % %

Orthopaedics 557 364 53.0 43.4 3.5 6.1

Knee Implants 226 137 65.5 58.8 - 6.7

Hip Implants 161 112 43.6 37.2 - 6.4

Other Reconstruction 21 12 72.1 64.0 - 8.1

Trauma & Extremities 149 103 44.3 28.2 11.4 4.7

Sports Medicine & ENT 391 247 58.5 50.9 - 7.6

Sports Medicine Joint Repair 211 129 63.6 55.9 - 7.7

Arthroscopic Enabling Technologies 147 96 53.0 45.5 - 7.5

ENT 33 22 51.8 45.2 - 6.6

Advanced Wound Management 387 290 33.5 27.2 - 6.3

Advanced Wound Care 186 144 29.4 20.6 - 8.8

Advanced Wound Bioactives 132 101 30.6 29.9 - 0.7

Advanced Wound Devices 69 45 52.6 42.8 - 9.8

Total 1,335 901 48.2 40.3 1.4 6.5

H1 consolidated revenue analysis

30

Half year2021

Half year2020

Reportedgrowth

Underlying growth

Acquisitions/disposals

Currency impact

Consolidated revenue by franchise $m $m % % % %

Orthopaedics 1,097 861 27.4 19.2 4.2 4.0

Knee Implants 438 367 19.5 15.8 - 3.7

Hip Implants 315 249 26.6 21.9 - 4.7

Other Reconstruction 47 33 40.2 35.3 - 4.9

Trauma & Extremities 297 212 40.2 19.6 17.0 3.6

Sports Medicine & ENT 764 575 32.9 28.0 - 4.9

Sports Medicine Joint Repair 409 301 35.9 31.0 - 4.9

Arthroscopic Enabling Technologies 293 223 31.7 26.5 - 5.2

ENT 62 51 20.5 16.6 - 3.9

Advanced Wound Management 738 599 23.2 18.0 - 5.2

Advanced Wound Care 361 302 19.5 12.2 - 7.3

Advanced Wound Bioactives 247 192 29.0 28.4 - 0.6

Advanced Wound Devices 130 105 23.5 16.9 - 6.6

Total 2,599 2,035 27.8 21.3 1.8 4.7

Trading days per quarter

31

Q1 Q2 Q3 Q4 Full year

2019 63 63 63 62 251

2020 62 63 63 64 252

2021 64 64 63 60 251

2022 64 63 63 60 250

H1 EPSA

32

2021$m

2020$m

Reported growth

Trading profit 459 172 167%

Net interest payable (39) (21)

Other finance costs (5) (7)

Share of results from associates 1 (3)

Adjusted profit before tax 416 141 195%

Taxation on trading result (76) (24)

Adjusted attributable profit 340 117

Weighted average number of shares (m) 876 874

Adjusted earnings per share ("EPSA") 38.8¢ 13.4¢ 189%

Our sustainability strategy and 2020 highlights

8,000 hours of employee volunteering in the

communities in which we live and work.

Target: between 2020 and 2030, contribute 1 million

volunteer hours.

$4.7 million product donations to underserved

communities.

Target: between 2020 and 2030, donate $125 million in

products.

Eight Global Employee Inclusion Groups were

established. Our senior leaders and managers

were trained on inclusion.

Target: empower and promote the inclusion of all.

33

All sites in Memphis (US) began sourcing

renewable electricity, which consumes over 40%

of the Group’s electricity.

Target: achieve an 80% absolute reduction in total life

cycle greenhouse gas emissions by 2050, beginning by

implementing 100% renewable electricity plans at our

facilities in Memphis (US) and Malaysia, and at all of our

strategic manufacturing facilities by 2025.

1,853 tonnes: We sent 7% less waste to landfill

during 2020 compared to the previous year.

Target: achieve zero waste to landfill at our facilities in

Memphis (US) and Malaysia by 2025, and at all of our

strategic manufacturing facilities by 2030.

Started to develop our packaging reduction

roadmap, as well as our packaging sustainability

strategy.

Target: by 2025, incorporate at least 30% post-

consumer recycled content into all non-sterile packaging

materials, as well as incorporating packing materials

from sustainable sources for new packaging parts.

We have started risk mapping our supply chain.

Target: to complete the assessment of all suppliers by

2025, including subsequent tier levels, to assure

compliance with our sustainability requirements.

Initiated sustainability reviews within New

Product Development.

Target: by 2022, include sustainability review in New

Product Development phase reviews for all new

products and product acquisitions.

PeopleCreating a lasting positive impact on our

communities

PlanetA medical technology business with a

positive impact

ProductsInnovating sustainably