Jerry Goodman, SVPGM

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Jerry Goodman, SVP/GM Capital SBU
Smith Nephew EndoscopyFocus Execution
September 18, 2007
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Capital SBU

• Aligning dedicated Marketing, RD, Sales and
  Service efforts with other cross functional
  support groups
• Capital portfolio
• Resection (RF, Blades and handheld instruments)
• Pumps, TOC (trocars, obturators, cannulas)
• Visualization
• DOR
• Service

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Driving leadership in Capital products
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Market overview

• Active/Informed patient base continues to grow
• New procedures (hip arthroscopy/shoulder
  arthroscopy) providing growth opportunities
• Global opportunity through traditional and
  emerging markets
• Expected move by government agencies to reduce
  current reimbursement barriers on ASCs
• Medical technology innovation mirrors commercial
  innovation
• Reprocessing

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Market/Customer segmentation
Potential Customer
Drivers
Tier 1

• Prestige teaching hospitals
• Referral centers
• Diverse, high-volume ASCsConversion accounts
• Select international markets/accounts

• High Performance
• High volume Customers
• Superior Functionality
• Promotes Versatility
• Premium Price

• Reliable Performance
• Competitive Functionality
• Increases Efficiency
• Price Competitive

• Mid volume acute care and ASCs US
• Mid tier international markets/accounts

Tier 2

• Physician owned ASCs
• Developing International Markets

• Acceptable Performance
• Basic Functionality
• Low End Focus
• Value Priced

Tier 3

• 0

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H1 performance

• Viz and DOR grew 14
• Resection up 5
• Feeding the product pipeline
• HD camera platform
• New hi-flow cannula
• Wireless remote for our new pump
• Capability audit of RD and Marketing to better
  align people with deliverables

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Full HD 1080 High Definition System
Every Component in the chain MUST be HD or the
quality will only be as good as the weakest
component
Monitor
Camera Head
CCU
Control System
Image Management System
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Driving performance

• Revenue
• Channel maximization
• PAR
• ASC-specific offering
• International-specific technology
• Service contracts
• RD innovation team
• Downstream marketing campaigns (faces of
  DYONICS)
• New product launches
• Profit
• Continued focus on earnings improvement
  initiatives
• LCC manufacturing
• Continuation of tiered marketing strategy
• Visualization in surgical specialties
• Innovation

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