First Quarter 2019 Trading Report

This document may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expectedrevenue growth and trading 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 toidentify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other importantfactors that could cause actual results to differ materially from what is expressed or implied by the statements. For Smith & Nephew, thesefactors include: economic and financial conditions in the markets we serve, especially those affecting health care providers, payers andcustomers; 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 orfailure 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 acquiredbusinesses; disruption that may result from transactions or other changes we make in our business plans or organisation to adapt to marketdevelopments; and numerous other matters that affect us or our markets, including those of a political, economic, business, competitive orreputational nature. Please refer to the documents that Smith & Nephew has filed with the U.S. Securities and Exchange Commission underthe U.S. Securities Exchange Act of 1934, as amended, including Smith & Nephew's most recent annual report on Form 20-F, for adiscussion of certain of these factors. Any forward-looking statement is based on information available to Smith & Nephew as of the date ofthe statement. All written or oral forward-looking statements attributable to Smith & Nephew are qualified by this caution. Smith & Nephewdoes not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in Smith &Nephew's expectations.

Certain items included in ‘trading results’, such as trading profit, trading profit margin, tax rate on trading results, trading cash flow, tradingprofit to cash conversion ratio, EPSA and underlying growth are non-IFRS financial measures. The non-IFRS financial measures in thisannouncement are explained and reconciled to the most directly comparable financial measure prepared in accordance with IFRS in ourFirst Quarter Results announcement dated 2 May 2019.

Forward looking statements and non-IFRS measures

2

Namal NawanaChief Executive Officer

3

Q1 revenue: $1,202m +4.4% underlying, +0.5% reported

All revenue growth rates in the presentation are on an underlying basis and without adjustment for number of selling days, unless otherwise stated

Total

Advanced Wound Management

Sports Med & ENT

Orthopaedics

Q1 revenue franchise split Franchise growth

Orthopaedics$546m

Sports Med & ENT $368m

Advanced Wound Management

$288m

4.1%

5.3%

3.9%

4.4%

0.0% 2.0% 4.0% 6.0%

4

Q1 revenue: $1,202m +4.4% underlying, +0.5% reported

All revenue growth rates in the presentation are on an underlying basis and without adjustment for number of selling days, unless otherwise stated

Total

US

Other Established Markets

Emerging Markets

Q1 revenue geographic split Geographical growth

US$568m

Other Established Markets $415m

Emerging Markets$219m

‘Other Established Markets’ are Australia, Canada, Europe, Japan and New Zealand

15.3%

-0.1%

4.0%

4.4%

-5.0% 0.0% 5.0% 10.0% 15.0% 20.0%

5

Orthopaedics: $546m, +3.9% underlying

Q1 revenue performance• Knees: global +4.1%, US +1.6%, OUS +7.3%

• Hips: global +2.4%, US +4.0%, OUS +1.0%

• Other reconstruction* +6.9%

• Trauma: +4.8%

Commentary• Global Knees and US Hips growing above market

• Hips product supply issue improving

• EVOS™ plating system driving acceleration in Trauma

Knees $261m

Hips $152m

Q1 revenue split

LEGION™ Revision Total Knee

Replacement System

Trauma $119m

Other Recon $14m

6‘Other reconstruction’ comprises capital sales from robotics, and cement

Sports Medicine & ENT: $368m, +5.3% underlying

Q1 revenue performance• Sports Medicine Joint Repair +11.0%

• Arthroscopic Enabling Technologies -1.1%

• ENT +4.2%

Commentary• China driving acceleration in Joint Repair

• AET decline slowed, on track for return to growth

• Core COBLATION business driving ENT growth

SMJR $188m

AET $145m

ENT $35m

Q1 revenue split

7

NOVOSTITCH™ PRO Meniscal Repair System

Advanced Wound Management: $288m, +4.1% underlying

Q1 revenue performance• Advanced Wound Care +2.0%

• Advanced Wound Bioactives +0.4%

• Advanced Wound Devices +16.4%

Commentary• US continuing to drive overall AWC growth

• REGRANEX™ returned to growth after relaunch

• Double-digit growth for both PICO™ and RENASYS™

AWC $176m

AWB $59m

AWD $53m

Q1 revenue split

8

RENASYS TOUCHNegative Pressure

Wound Therapy

Executing on M&A strategy

9

Acquisition of Orthopaedic Joint Reconstruction Business

Moving from robotic-assisted surgery to a digital ecosystem

10

Launch of NAVIO 7.0 in H2 2019

Brainlab hip software on NAVIO

NAVIO™Surgical System

Launch of next-generation platform, with Brainlab hip and knee software

Introduction of robotic arms

Ecosystem incorporating stand-alone robotic arms, augmented reality

Expansion into sports medicine and other clinical specialties

NAVIO 7.0 software has not been cleared by the FDA for distribution in the United States and is not yet commercially available

Commercial leadership team fully appointed

Skip Kiil Brad Cannon Simon Fraser Max Colella

11

Myra Eskes

President, Orthopaedics

President, Sports Medicine

& ENT

President,Advanced Wound

Management

President, EMEA

President, APAC

Brad CannonPresident, Sports Medicine & ENT

12

Immediate, major commercial upgrades

• Increased the number of capital sales and

biologics specialists

• Redesigned territories and the incentives on

how teams sell together

• Introduced a simplified, performance-based

compensation plan

• Implemented enhanced sales process for lead

technologies

• Initiated the move from a product company to a

procedure/portfolio company13

Entering new segments, including recent tuck-in acquisitions

Current major S&N Joint Repair categories Recent Sports Medicine tuck-in acquisitions

Shoulder

Foot and Ankle

Hip

Knee

REGENETEN™: a novel tissueregeneration technology forshoulder rotator cuff repair

NOVOSTITCH™ PRO: a unique device for complex meniscal tear patterns

14

Ceterix broadens offering in meniscal repair

• Acquisition closed in January 2019

• Increases the number of repairable tear-types

• Scaling manufacturing

• Preparing for registrations in new geographies

• Evidence and education for greater adoption

15

Critical investments in core businesses

DYONICS™ PLATINUM

Series Blades

COBLATION™

FLOW90™ Wand

LENS™4K Surgical

Imaging System

Q2 2019 H2 2019

16

Well-positioned to benefitfrom market trends

• Favorable demographics

• Demand for rapid healing and recovery

• Shift in the point of care – move to ASCs

17

Graham BakerChief Financial Officer

18

Guidance

Sales growth:Underlying: 2.5% to 3.5%Reported: 2.9% to 3.9%(1)

Tax rate:19% to 21%(2)

Trading profit margin:22.8 to 23.2%

2019

Medium termTrading profit margin:Ongoing improvement

Tax rate:19% to 21%(2)

Sales growth:Consistent growth above

market

(1) Based on the foreign exchange rates prevailing on 26 April 2019(2) Tax rate on trading result

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Questions

20

Appendices

21

Technical guidance

(1) Based on the foreign exchange rates prevailing on 26 April 2019

Guidance April 2019

Foreign exchange and other revenue impact

Impact of translational FX on revenue(1) (2.0%)

Acquisition impact on revenue +2.4%

Non-trading items

Restructuring costs c. $100-120m

Acquisition and integration costs c. $30-40m

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

Other

Amortisation of acquisition intangibles c. $130-140m

Income from associates c. $5m

Net interest $50-55m

Other finance costs c. $15m

Tax rate on trading result 19%-21%

22

Franchise revenue analysis

23All revenue growth rates are on an underlying basis and without adjustment for number of selling days

2018 2019

Q1 Q2 Q3 Q4FullYear

Q1

Growth Growth Growth Growth Growth Revenue Growth

% % % % % $m %

Orthopaedics 0 1 5 4 3 546 3.9

Knee Implants 2 3 4 3 3 261 4.1

Hip Implants (2) 1 4 4 2 152 2.4

Other Reconstruction 30 27 43 45 36 14 6.9

Trauma (2) (5) 3 1 (1) 119 4.8

Sports Medicine & ENT 1 3 3 2 2 368 5.3

Sports Medicine Joint Repair 5 7 8 8 7 188 11.0

Arthroscopic Enabling Technologies (5) (1) (2) (4) (3) 145 (1.1)

ENT 6 5 5 3 5 35 4.2

Advanced Wound Management (2) 1 1 2 0 288 4.1

Advanced Wound Care 0 2 1 2 1 176 2.0

Advanced Wound Bioactives (12) (6) (7) (3) (6) 59 0.4

Advanced Wound Devices 2 9 11 14 9 53 16.4

Total 0 2 3 3 2 1,202 4.4

Regional revenue analysis

24Other 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

2018 2019

Q1 Q2 Q3 Q4FullYear

Q1

Growth Growth Growth Growth Growth Revenue Growth

% % % % % $m %

US (2) 1 4 3 1 568 4.0

Other Established Markets(1) (2) 1 (1) 0 0 415 (0.1)

Total Established Markets (2) 1 2 2 1 983 2.2

Emerging Markets 9 6 10 8 8 219 15.3

Total 0 2 3 3 2 1,202 4.4

Trading days per quarter

25

Q1 Q2 Q3 Q4 Full Year

2017 64 63 63 60 250

2018 63 64 63 61 251

2019 63 63 63 62 251

Year-on-year differences in the number of trading days typically impacts our surgical businesses in the Established Markets more than our wholesaler and distributor-supported businesses. We define trading days as weekdays adjusted for significant holidays in our principal countries.