Half Year 2022 Smiths Group PLC Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew J. Wilson - JPMorgan Chase & Co, Research Division - Analyst : I've got 3 different, so maybe if I take them one at a time. Just on John Crane and the order development and I guess, expectation of the order development. I'm just trying to understand a little bit how the current events in Russia, Ukraine, would you sort of see that meaningful longer-term demand for John Crane on top of, obviously, everything you talked about at the Capital Markets Day? And then I guess the expectation on the time line to see and potentially some of that benefit. I guess what I'm trying to understand is that might all be positive, but does it take a little bit of time to come through? And what should we sort of expect in terms of orders turned into sales. So maybe quite a broad question on John Crane order dynamics. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 25, 2022 / 8:30AM, SMIN.L - Half Year 2022 Smiths Group PLC Earnings Call

Question: Andrew J. Wilson - JPMorgan Chase & Co, Research Division - Analyst : Perfect. I wanted to also follow up on John's comments around capital allocation and just M&A and sort of given the success, particularly of Royal Metal, which obviously you can see in the numbers, interested kind of what that pipeline looks like? And I guess if there's sort of more of that Royal Metal type businesses, obviously, another one that's attractive, that would be good. But just in terms of pipeline and kind of thoughts on vendor expectations, and whether they are shifting is maybe becoming a little bit easier or not?

Question: Andrew J. Wilson - JPMorgan Chase & Co, Research Division - Analyst : And then the final one, just on the vitality index number that you gave, I guess I'm interested, and apologies if this has been talked about before, I might have missed it, but sort of do you have a target for what that vitality number should look like? I mean I appreciate there must be a sweet REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 25, 2022 / 8:30AM, SMIN.L - Half Year 2022 Smiths Group PLC Earnings Call spot in terms of the amount that you're spending in terms of R&D and how much practically revenues you would expect from, I guess, recent product launches. But I just wonder if there's a target level, what you see as the kind of the right level for a group like Smiths?