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Table of Contents
Stryker Overview
Company Leadership.1 Summary of Results..2 Net Sales3 Net Earnings as Reported..4 Adjusted Net Earnings from Continuing Operations5 Diluted Net Earnings per Share as Reported.6 Adjusted Diluted Net Earnings per Share from Continuing Operations...7 2010 Product Portfolio Sales.8 2010 Orthopaedic Implants Product Sales9 2010 MedSurg Equipment Sales...10 2010 Sales by Geography..11
2010-2011
Company Leadership
CORPORATE OFFICERS
Stephen P. MacMillan Chairman, President and Chief Executive Officer Jeanne M. Blondia Vice President and Treasurer Lonny J. Carpenter Group President, Global Quality and Operations Andrew G. Fox-Smith Group President, International Curtis E. Hall Vice President, General Counsel and Secretary Curt R. Hartman Vice President and Chief Financial Officer Marci S. Kaminksy Vice President, Communications and Public Affairs Eric Lum Vice President, Tax Tony M. McKinney Vice President, Chief Accounting Officer Michael P. Mogul Group President, Orthopaedics Anne L. Mullally Vice President and Chief Compliance Officer Katherine A. Owen Vice President, Strategy and Investor Relations James B. Praeger Vice President, Finance Training, Development and Internal Audit Michael W. Rude Vice President, Human Resources Timothy J. Scannell Group President, MedSurg and Spine Elizabeth A. Staub Vice President, Regulatory Affairs and Quality Assurance
2009
$6,723 1,107 2.77
% Change
9 15 15
Adjusted Results
2010
Net Sales 1 Adjusted Net Earnings 2 Adjusted Diluted Net Earnings per Share Adjusted Return on Sales Adjusted Return on Average Equity $7,320 1,329 3.33 18% 19%
2009
$6,723 1,180 2.95 18% 20%
% Change
9 13 13
$ in millions (except per share amounts) 1. See page 5 for the reconciliation to adjusted net earnings from continuing operations. 2. See page 7 for the reconciliation to adjusted diluted net earnings per share from continuing operations.
8,000 7,500 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
7,320 6,718 6,001 5,147 4,609 4,017 3,402 2,810 2,421 6,723
2001
2002 16%
2003 21%
2004 18%
2005 15%
2007 17%
2008 12%
2009 --
2010 9%
2,810 3,402
4,017 4,609
6,001 6,718
6,723 7,320
1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0
Annual Growth Rate Net Earnings as Reported 2001 21% 255 2002 29% 329 2003 32% 434 2004 1% 440 2005 46% 644 2006 21% 778 2007 31% 1,017 2008 13% 1,148 2009 (4%) 1,107
434 255 329 440 644 778 1,017 1,148 1,107
1,273
Stryker Overview
Adjusted Net Earnings from Continuing Operations*
$ in Millions
1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0
Annual Growth Rate Adjusted Net Earnings 2001 22% 257 2002 26% 325 2003 29% 419 2004 33% 559 2005 21% 676 2006 22% 824 2007 21% 999 2008 17% 1,170 2009 1% 1,180
257 325 419 559 676 824 999 1,170 1,180
1,329
Reported Net Earnings Adjustments (Net of Tax): Restructuring, Acquisition-Related, and Other Charges (Credits) Goodwill/Workforce Intangible Amortization Purchased In-Process Research & Development Income Taxes on Repatriation of Foreign Earnings Extraordinary Loss Intangible Asset Impairment Net Earnings and Gain on Sale of Discontinued Operations Impairment of property, plant & equipment Gain on sale of property, plant & equipment Subtotal Adjusted Net Earnings from Continuing Operations
Stryker Overview
Diluted Net Earnings per Share as Reported
$3.50 $3.25 $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00
Annual Growth Rate 2001 21% 2002 29% 0.81 2003 32% 1.07 2004 1% 1.08 2005 45% 1.57 2006 20% 1.89
1.07 0.63 0.81 1.08 1.89 1.57
2009 -2.77
Stryker Overview
Adjusted Diluted Net Earnings per Share from Continuing Operations*
$3.50 $3.25 $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00
Annual Growth Rate Adjusted Diluted Net EPS
2.00 1.65 1.37 1.03 0.63 0.80 2.40
2009 4% 2.95
* RECONCILIATION TO ADJUSTED DILUTED NET EARNINGS PER SHARE FROM CONTINUING OPERATIONS
2001 $0.63 0.03 0.01 (0.04) $0.63 2002 $0.81 0.03 (0.04) (0.01) $0.80 2003 $1.07 (0.04) (0.04) $1.03 2004 $1.08 0.29 0.29 $1.37 2005 $1.57 0.04 0.07 (0.03) 0.08 $1.65 2006 $1.89 0.13 (0.02) 0.11 $2.00 2007 $2.44 0.03 (0.07) (0.04) $2.40 2008 $2.78 0.05 0.05 $2.83 2009 $2.77 0.01 0.17 0.18 $2.95 2010 $3.19 (0.02) 0.19 (0.03) 0.14 $3.33
Reported Diluted Net Earnings per Share Adjustments (Net of Tax): Restructuring, Acquisition-Related and Other Charges (Credits) Goodwill/Workforce Intangible Amortization Purchased In-Process Research & Development Income Taxes on Repatriation of Foreign Earnings Extraordinary Loss Intangible Asset Impairment Net Earnings and Gain on Sale of Discontinued Operations Impairment of property, plant & equipment Gain on sale of property, plant & equipment Subtotal Adjusted Diluted Net Earnings per Share from Continuing Operations
MedSurg Products
Orthopaedic Implants
$ Millions
2010 $4,308 3,012 $7,320 2009 $4,120 2,603 $6,723 % Change 5% 16% 9% Constant Currency 3% 15% 8%
Stryker Overview
2010 Orthopaedic Implant Product Sales
Knees Other Reconstructive
Spinal
4,308 4,120
1,537
2001 9% 1,537
2009 4% 4,120
2010 5% 4,308
9
Stryker Overview
2010 MedSurg Equipment Sales
Operating Room Equipment
Ascent
Endoscopy
$500
$0
Annual Growth Rate MedSurg Sales
Stryker Overview
2010 Sales by Geography
United States
EMEA
$ Millions
2010 $4,793 2,527 $7,320 2009 $4,317 2,406 $6,723 % Change 11% 5% 9% Constant Currency 11% 2% 8%
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2010-2011
The data set forth in this Market Segment Overview is derived, in part, from third party sources, including publicly reported information to the extent available. We are unable to independently verify the information that comes from third party sources. Moreover, the total market segment size and the market segment share of the companies included is necessarily based on estimates as many companies do not report the specific information identified by market segments as classified in this Market Segment Overview. The data presented is based on our definition of the market segments. Accordingly, while we believe that this data is representative, it is presented only to provide the reader with a broad overview and should not be relied on. Note: Numbers in this section may not add to totals due to rounding.
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Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
Company J&J Siemens G.E. Medtronic Baxter Philips Covidien Abbott Cardinal Health Boston Scientific Becton Dickinson Stryker B. Braun St. Jude 3M Olympus Zimmer Toshiba Danaher Smith & Nephew Terumo Hospira CareFusion Synthes Beckman Coulter Alcon Fresenius C.R. Bard Biomet Varian Medical
Total Estimated Med Tech Sales 24.6 17.0 16.9 15.8 12.8 11.5 10.6 9.7 8.7 7.8 7.3 7.3 5.9 5.2 4.5 4.4 4.2 4.1 4.1 4.0 4.0 3.9 3.9 3.7 3.7 3.2 3.0 2.7 2.7 2.4
Total Estimated Company Sales 61.6 104.7 150.2 15.8 12.8 34.1 10.6 35.2 98.6 7.8 7.3 7.3 5.9 5.2 26.7 10.5 4.2 81.2 13.2 4.0 4.0 3.9 3.9 3.7 3.7 7.2 12.1 2.7 2.7 2.4
* All numbers have been converted to USD at the 2010 average exchange rate and are for the twelve month period ending December 31, 2010 Source: Capital IQ and company reports
Stryker Overview 2010-2011 13
Arthroscopy
Other
$39.7 Billion 5%
Estimated ($ Billions)
Implants Spinal Devices Knees Trauma & Craniomaxillofacial Hips Orthobiologics Extremities & Bone Cement Subtotal Sales $7.2 6.9 6.2 5.6 4.5 1.2 $31.6 Percent of Market 18% 17% 16% 14% 11% 3% 80% Percent of Market 8% 8% 4% 20% 100% Growth Rate 1% 4% 8% 3% 10% 9% 5% Growth Rate 6% 8% 4% 6% 5%
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Equipment & Other Operating Room Equipment Arthroscopy Other Subtotal Total Orthopaedic Market
Stryker Overview 2010-2011
Synthes
Biomet Other
$39.7 Billion 5%
Estimated ($ Billions)
Company Stryker J&J Zimmer Medtronic Synthes Smith & Nephew Biomet Other Total Market
Stryker Overview 2010-2011
Total Sales $7.3 61.6 4.2 15.8 3.7 4.0 2.7 N/A N/A
Orthopaedic Sales $5.9 5.1 4.0 3.7 3.7 3.1 2.5 11.7 $39.7
Knees
$13.7 Billion 4% 4%
Cervical
Electrical Stimulation
$7.2 Billion 1% 3%
Upper Extremity
Hip Fracture
$6.2 Billion 8% 7%
Allograft
Growth Factors Market Size Market Growth Stryker Growth $4.5 Billion 10% (11% )
Powered Instruments
$3.4 Billion 6% 7%
Urology
Open Surgery & Other Instrumentation Other Capital Equipment & Services ENT, Oncology, Gynecology, Flexible Scopes
Visualization Other Arthroscopy OR Integration Market Size Market Growth Stryker Growth Rigid Scopes
$23.5 Billion 6% 7%
Furniture
EMS
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Reprocessing device market potential of $1.8B (based on 50% of cost of new devices)
Not Addressed
Currently Addressed
Market Size Market Growth Key Market Players Stryker (Ascent) SterilMed Medisiss Hygia Health Services
Stryker Overview 2010-2011
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Aneurysm Stents
Ischemic Stents Remodeling Balloons Flow Diversion Devices Liquid Embolic Systems Support Devices Revascularization Devices
Market Size Market Growth Key Market Players Boston Scientific J&J (Micrus) Covidien (ev3) Terumo Penumbra Concentric
$1.0 Billion 9%
In Fiscal 2011, Stryker will participate in the blue shaded areas with the acquisition of Boston Scientific's Neurovascular Division.
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Joint Replacements Trauma, Extremities & Deformities Craniomaxillofacial Spine Biologics Surgical Products Neuro & ENT Interventional Spine Navigation Endoscopy Communications Patient Care & Handling Equipment EMS Equipment Medical Device Reprocessing & Remanufacturing Neurovascular