2010-11 SYK Fact Book FINAL 042511 (1)
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Transcript of 2010-11 SYK Fact Book FINAL 042511 (1)
Stryker Overview 2010-2011
2010-2011
Investor Relations
Katherine A. OwenVice President, Strategy andInvestor Relations
Public & Media Relations
Marci S. KaminskyVice President, Communicationsand Public Affairs
2825 Airview Boulevard
Kalamazoo, MI 49002
t: 269 385 2600
Stryker Overview 2010-2011
Table ofContents
Stryker OverviewCompany Leadership……………………………………………………………….1
Summary of Results………………………………………………………………..2
Net Sales……………………………………………………………………………3
Net Earnings as Reported…………………………………………………………..4
Adjusted Net Earnings from Continuing Operations………………………………5
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 Sales…………………………………………9
2010 MedSurg Equipment Sales…………………………………………………...10
2010 Sales by Geography…………………………………………………………..11
Market Segment Overview………………………………………………………12
Medical Technology Overview
2010 Worldwide Market……………………………………………………………13
Orthopaedic Market Segment Overview
2010 Worldwide Market by Product……………………………………………….14
2010 Worldwide Market by Company……………………………………………..15
Orthopaedic Implant Segment Overview
2010 Worldwide Reconstructive Market…………………………………………..16
2010 Worldwide Spinal Market……………………………………………………17
2010 Worldwide Trauma & Craniomaxillofacial Market………………………… 18
2010 Worldwide Orthobiologics Market…………………………………………..19
MedSurg Equipment Segment Overview
2010 Worldwide Operating Room Equipment Market…………………………….20
2010 Worldwide Endoscopy Market……………………………………………….21
2010 North American Patient Handling Market…………………………………...22
2010 US Medical Device Reprocessing Market…………………………………...23
Neurovascular Segment Overview
2010 Worldwide Neurovascular Market…………………………………………..24
Stryker Overview 2010-2011
2010-2011
Stryker Overview 2010-2011
CompanyLeadership
Stephen P. MacMillanChairman, President and Chief Executive Officer
Jeanne M. BlondiaVice President and Treasurer
Lonny J. CarpenterGroup President, Global Quality and Operations
Andrew G. Fox-SmithGroup President, International
Curtis E. HallVice President, General Counsel and Secretary
Curt R. HartmanVice President and Chief Financial Officer
Marci S. KaminksyVice President, Communications and Public Affairs
Eric LumVice President, Tax
Tony M. McKinneyVice President, Chief Accounting Officer
Michael P. MogulGroup President, Orthopaedics
Anne L. MullallyVice President and Chief Compliance Officer
Katherine A. OwenVice President, Strategy and Investor Relations
James B. PraegerVice President, Finance Training, Development and Internal Audit
Michael W. RudeVice President, Human Resources
Timothy J. ScannellGroup President, MedSurg and Spine
Elizabeth A. StaubVice President, Regulatory Affairs and Quality Assurance
CORPORATE OFFICERS OPERATING GROUPS AND DIVISIONS
MEDSURG AND SPINETimothy J. Scannell – Group President
InstrumentsJames N. Heath – President
MedicalBradford L. Saar – President
SpineSpencer S. Stiles – President
EndoscopyWilliam R. Enquist – Global President
Ascent Healthcare SolutionsRicardo M. Ferreira – President
ORTHOPAEDICSMichael P. Mogul – Group President
OsteosynthesisVivian Masson – President
INTERNATIONALAndrew Fox-Smith – Group President
EuropeLaura Piccinini – President
Emerging MarketsJames L. Cunniff – President
JapanXavier Berling – President
CanadaDavid A. Murphy – General Manager
South PacificPhillip S. Nicholl – Managing Director
BIOTECHJames E. Kemler – Group President
NEUROVASCULARMark H. Paul – President
1
Stryker Overview 2010-2011
Stryker OverviewSummary of Results
As Reported2010 2009 % Change
Net Sales $7,320 $6,723 9
Net Earnings 1,273 1,107 15
Diluted Net Earnings per Share 3.19 2.77 15
Adjusted Results2010 2009 % Change
Net Sales $7,320 $6,723 9
Adjusted Net Earnings1
1,329 1,180 13
Adjusted Diluted Net Earnings per Share2
3.33 2.95 13
Adjusted Return on Sales 18% 18%
Adjusted Return on Average Equity 19% 20%
$ 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.
2
Stryker Overview 2010-2011
2,421
2,810
3,402
4,017
4,609
5,147
6,001
6,718 6,723
7,320
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,5007,000
7,500
8,000
Annual Growth Rate 13% 16% 21% 18% 15% 12% 17% 12% -- 9%
Net Sales 2,421 2,810 3,402 4,017 4,609 5,147 6,001 6,718 6,723 7,320
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Stryker OverviewNet Sales
$ in Millions
3
Stryker Overview 2010-2011
255 329
434 440
644
778
1,017
1,148 1,107
1,273
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
Annual Growth Rate 21% 29% 32% 1% 46% 21% 31% 13% (4%) 15%
Net Earnings as Reported 255 329 434 440 644 778 1,017 1,148 1,107 1,273
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Stryker OverviewNet Earnings as Reported
$ in Millions
4
Stryker Overview 2010-2011
Stryker OverviewAdjusted Net Earnings from Continuing Operations*
$ in Millions
257
325
419
559
676
824
999
1,1701,180
1,329
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
Annual Growth Rate 22% 26% 29% 33% 21% 22% 21% 17% 1% 13%
Adjusted Net Earnings 257 325 419 559 676 824 999 1,170 1,180 1,329
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
* RECONCILIATION TO ADJUSTED NET EARNINGS FROM CONTINUING OPERATIONS ($ Millions)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Reported Net Earnings $255.2 $328.5 $434.4 $440.0 $643.6 $777.7 $1,017.4 $1,147.8 $1,107.4 $1,273.4
Adjustments (Net of Tax):
Restructuring, Acquisition-Related, and Other Charges (Credits) 0.4 11.5 - - - - - 21.7 5.5 -
Goodwill/Workforce Intangible Amortization 11.0 - - - - - - - - -
Purchased In-Process Research & Development - - - 120.8 15.9 52.7 - - - -
Income Taxes on Repatriation of Foreign Earnings - - - - 27.4 - - - 67.1 (7.4)
Extraordinary Loss 4.8 - - - - - - - - -
Intangible Asset Impairment - - - - - - 12.7 - - -
Net Earnings and Gain on Sale of Discontinued Operations (14.6) (15.2) (15.8) (2.0) (11.1) (6.3) (30.7) - - -
Impairment of property, plant & equipment - - - - - - - - - 76.6
Gain on sale of property, plant & equipment - - - - - - - - - (13.4)
Subtotal 1.6 (3.7) (15.8) 118.8 32.2 46.4 (18.0) 21.7 72.6 55.8
Adjusted Net Earnings from Continuing Operations $256.8 $324.8 $418.6 $558.8 $675.8 $824.1 $999.4 $1,169.5 $1,180.0 $1,329.2
5
Stryker Overview 2010-2011
0.630.81
1.07 1.08
1.57
1.89
2.44
2.78 2.77
3.19
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
$2.75
$3.00
$3.25
$3.50
Annual Growth Rate 21% 29% 32% 1% 45% 20% 29% 14% -- 15%
Diluted Net EPS as Reported 0.63 0.81 1.07 1.08 1.57 1.89 2.44 2.78 2.77 3.19
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Stryker OverviewDiluted Net Earnings per Share as Reported
6
Stryker Overview 2010-2011
0.63 0.80
1.03
1.37
1.65
2.00
2.40
2.83
2.95
3.33
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
$2.75
$3.00
$3.25
$3.50
Annual Growth Rate 21% 27% 29% 33% 20% 21% 20% 18% 4% 13%
Adjusted Diluted Net EPS 0.63 0.80 1.03 1.37 1.65 2.00 2.40 2.83 2.95 3.33
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Stryker OverviewAdjusted Diluted Net Earnings per Share fromContinuing Operations*
* RECONCILIATION TO ADJUSTED DILUTED NET EARNINGS PER SHARE FROM CONTINUING OPERATIONS
7
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Reported Diluted Net Earnings per Share $0.63 $0.81 $1.07 $1.08 $1.57 $1.89 $2.44 $2.78 $2.77 $3.19
Adjustments (Net of Tax):
Restructuring, Acquisition-Related and Other Charges (Credits) - 0.03 - - - - - 0.05 0.01 -
Goodwill/Workforce Intangible Amortization 0.03 - - - - - - - - -
Purchased In-Process Research & Development - - - 0.29 0.04 0.13 - - - -
Income Taxes on Repatriation of Foreign Earnings - - - - 0.07 - - - 0.17 (0.02)
Extraordinary Loss 0.01 - - - - - - - - -
Intangible Asset Impairment - - - - - - 0.03 - - -
Net Earnings and Gain on Sale of Discontinued Operations (0.04) (0.04) (0.04) - (0.03) (0.02) (0.07) - - -
Impairment of property, plant & equipment - - - - - - - - - 0.19
Gain on sale of property, plant & equipment - - - - - - - - - (0.03)
Subtotal - (0.01) (0.04) 0.29 0.08 0.11 (0.04) 0.05 0.18 0.14
Adjusted Diluted Net Earnings per Share from Continuing Operations $0.63 $0.80 $1.03 $1.37 $1.65 $2.00 $2.40 $2.83 $2.95 $3.33
Stryker Overview 2010-2011
Stryker Overview2010 Product Portfolio Sales
Knees
Other Reconstructive
Spinal
Trauma and
Craniomaxillofacial
Hips
Operating Room
Equipment
Endoscopy
Medical Beds &
Stretchers
Ascent
$ Millions
2010 2009 % Change
Constant
Currency
Orthopaedic Implants $4,308 $4,120 5% 3%
MedSurg Equipment 3,012 2,603 16% 15%
Total $7,320 $6,723 9% 8%
MedSurg Products Orthopaedic Implants
OrthopaedicImplants
59%
MedSurgEquipment
41%
8
Stryker Overview 2010-2011
1,5371,798
2,192
2,556
2,850
3,123
3,587
3,967 4,1204,308
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Annual Growth Rate 9% 17% 22% 17% 12% 10% 15% 11% 4% 5%
1,537 1,798 2,192 2,556 2,850 3,123 3,587 3,967 4,120 4,308
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Stryker Overview2010 Orthopaedic Implant Product Sales
Hips
Other
Reconstructive
Spinal
Trauma and
Craniomaxillofacial
Knees
59% of Total Company Sales
$ in Millions
9
Stryker Overview 2010-2011
884 1,0121,210
1,461
1,759
2,024
2,413
2,7512,603
3,012
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Annual Growth Rate 20% 14% 20% 21% 20% 15% 19% 14% (5%) 16%
MedSurg Sales 884 1,012 1,210 1,461 1,759 2,024 2,413 2,751 2,603 3,012
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Stryker Overview2010 MedSurg Equipment Sales
41% of Total Company Sales
$ in Millions
Ascent
Endoscopy
Medical Beds &
Stretchers
Operating Room
Equipment
10
Stryker Overview 2010-2011
Stryker Overview2010 Sales by Geography
United States: 65%
International: 35%
$ Millions
2010 2009 % Change
ConstantCurrency
United States $4,793 $4,317 11% 11%
International 2,527 2,406 5% 2%
Total $7,320 $6,723 9% 8%
United States
PacificCanada & Latin
America
Japan
EMEA
11
Stryker Overview 2010-2011
2010-2011
The data set forth in this Market Segment Overview is derived, in part, from third party sources, including publicly re-ported information to the extent available. We are unable to independently verify the information that comes from thirdparty sources. Moreover, the total market segment size and the market segment share of the companies included isnecessarily based on estimates as many companies do not report the specific information identified by market segmentsas classified in this Market Segment Overview. The data presented is based on our definition of the market seg-ments. Accordingly, while we believe that this data is representative, it is presented only to provide the reader with abroad overview and should not be relied on. Note: Numbers in this section may not add to totals due to rounding.
12
Stryker Overview 2010-2011
Medical Technology Market Overview2010 Worldwide Market
13
* All numbers have been converted to USD at the 2010 average exchange rate and are for the twelve month period ending December 31, 2010Source: Capital IQ and company reports
Rank Company
Total
Estimated
Med Tech
Sales
Total
Estimated
Company
Sales1. J&J 24.6 61.6
2. Siemens 17.0 104.7
3. G.E. 16.9 150.2
4. Medtronic 15.8 15.8
5. Baxter 12.8 12.8
6. Philips 11.5 34.1
7. Covidien 10.6 10.6
8. Abbott 9.7 35.2
9. Cardinal Health 8.7 98.6
10. Boston Scientific 7.8 7.8
11. Becton Dickinson 7.3 7.3
12. Stryker 7.3 7.3
13. B. Braun 5.9 5.9
14. St. Jude 5.2 5.2
15. 3M 4.5 26.7
16. Olympus 4.4 10.5
17. Zimmer 4.2 4.2
18. Toshiba 4.1 81.2
19. Danaher 4.1 13.2
20. Smith & Nephew 4.0 4.0
21. Terumo 4.0 4.0
22. Hospira 3.9 3.9
23. CareFusion 3.9 3.9
24. Synthes 3.7 3.7
25. Beckman Coulter 3.7 3.7
26. Alcon 3.2 7.2
27. Fresenius 3.0 12.1
28. C.R. Bard 2.7 2.7
29. Biomet 2.7 2.7
30. Varian Medical 2.4 2.4
Top Medical Technology Companies ($ in Billions)*
Stryker Overview 2010-2011
Orthopaedic Market Segment Overview2010 Worldwide Market by Product
14
Estimated ($ Billions)
Sales
Percent
of Market
Growth
Rate
$7.2 18% 1%
Knees 6.9 17% 4%
6.2 16% 8%
Hips 5.6 14% 3%
4.5 11% 10%
1.2 3% 9%
$31.6 80% 5%
Sales
Percent
of Market
Growth
Rate
Operating Room Equipment $3.4 8% 6%
Arthroscopy 3.1 8% 8%
Other 1.6 4% 4%
Subtotal $8.0 20% 6%
Total Orthopaedic Market $39.7 100% 5%
Subtotal
Equipment & Other
Implants
Spinal Devices
Trauma & Craniomaxillofacial
Orthobiologics
Extremities & Bone Cement
Market Size $39.7 Billion
Market Growth 5%
Stryker participates in the blue shaded areas above.
Trauma andCraniomaxillofacial
Orthobiologics
Operating RoomEquipment
Arthroscopy
Other
ReconstructiveJoint Replacement
Spinal
Stryker Overview 2010-2011
Orthopaedic Market Segment Overview2010 Worldwide Market by Company
15
Estimated ($ Billions)
Total
Sales
Orthopaedic
Sales
Orthopaedic
Market Share
Orthopaedic
Growth Rate
$7.3 $5.9 15% 5%
J&J 61.6 5.1 13% 4%
4.2 4.0 10% 3%
Medtronic 15.8 3.7 9% (2%)
3.7 3.7 9% 8%
Smith & Nephew 4.0 3.1 8% 4%
2.7 2.5 6% 5%
N/A 11.7 30% 8%
N/A $39.7 100% 5%Total Market
Other
Company
Stryker
Zimmer
Synthes
Biomet
Market Size $39.7 Billion
Market Growth 5%
Stryker
J&J Zimmer
Medtronic
Synthes
Smith & Nephew
Biomet
Other
Stryker Overview 2010-2011
Orthopaedic Implant Segment Overview2010 Worldwide Reconstructive Market
16
Market Size $13.7 Billion
Market Growth 4%
Stryker Growth 4%
Stryker participates in the blue shaded areas above.
Hips
Knees
Extremities &Bone Cement
12%
11%
12%
19%
22%
24%
0% 5% 10% 15% 20% 25% 30%
Other
Smith & Nephew
Biomet
Stryker
J&J
Zimmer
Estimated Market Share by Company
Stryker Overview 2010-2011
Orthopaedic Implant Segment Overview2010 Worldwide Spinal Market
17
Market Size $7.2 Billion
Market Growth 1%
Stryker Growth 3%
Stryker participates in the blue shaded areas above.
Interbody Devices
Cervical
VertebralCompression
Fractures
ElectricalStimulation
Thoracolumbar
11%
3%
3%
4%
7%
9%
13%
14%
35%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Other
Biomet
Zimmer
Globus
Nuvasive
Stryker
Synthes
J&J
Medtronic
Estimated Market Share by Company
Stryker Overview 2010-2011
Orthopaedic Implant Segment Overview2010 Worldwide Trauma & Craniomaxillofacial
18
Market Size $6.2 Billion
Market Growth 8%
Stryker Growth 7%
Stryker participates in the blue shaded areas above.
Foot & Ankle
Upper ExtremityHip Fracture
Lower Extremity
CMF & Neuro
26%
4%
4%
5%
7%
16%
38%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Other
Biomet
Zimmer
J&J
Smith & Nephew
Stryker
Synthes
Estimated Market Share by Company
Stryker Overview 2010-2011
Orthopaedic Implant Segment Overview2010 Worldwide Orthobiologics Market
19
Market Size $4.5 Billion
Market Growth 10%
Stryker Growth (11%)
Stryker participates in the blue shaded areas above.
Visco-supplementation
Blood Based &Ortho Stem Cells
Allograft
Growth Factors
DemineralizedBone Matrix
Synthetics
51%
2%
2%
3%
4%
7%
11%
19%
0% 10% 20% 30% 40% 50% 60%
Other
Stryker
Osteotech
J&J
Smith & Nephew
Synthes
Genzyme
Medtronic
Estimated Market Share by Company
Stryker Overview 2010-2011
MedSurg Equipment Segment Overview2010 Worldwide Operating Room Equipment
20
Market Size $3.4 Billion
Market Growth 6%
Stryker Growth 7%
Stryker participates in the blue shaded areas above.
SurgicalEquipment
Navigation
PoweredInstruments
41%
3%
4%
4%
7%
10%
31%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Other
Covidien
J&J
Conmed
Zimmer
Medtronic
Stryker
Estimated Market Share by Company
Stryker Overview 2010-2011
MedSurg Equipment Segment Overview2010 Worldwide Endoscopy Market
21
Market Size $23.5 Billion
Market Growth 6%
Stryker Growth 7%
Stryker participates in the blue shaded areas above.
GastrointestinalLaparoscopy
Urology
Implants &Instruments
Visualization
Arthroscopy
Rigid ScopesOR Integration
Other
Open Surgery & Other InstrumentationOther Capital Equipment & ServicesENT, Oncology, Gynecology, Flexible Scopes
32%
4%
4%
4%
7%
13%
17%
20%
0% 5% 10% 15% 20% 25% 30% 35%
Other
Karl Storz
Smith & Nephew
Stryker
Boston Scientific
Covidien
Olympus
J&J
Estimated Market Share by Company
Stryker Overview 2010-2011
MedSurg Equipment Segment Overview2010 North American Patient Handling Market
22
Market Size $2.0 Billion
Market Growth 11%
Stryker Growth 21%
Stryker participates in the blue shaded areas above.
Patient Room
Furniture
EMS
Patient HandlingRental
22%
2%
9%
25%
42%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Other
Ferno-Washington
KCI
Stryker
Hill-Rom
Estimated Market Share by Company
Stryker Overview 2010-2011
MedSurg Equipment Segment Overview2010 U.S. Medical Device Reprocessing Market
23
Market Size $1.8 Billion
Market Growth 12%
Key Market Players
Stryker (Ascent)
SterilMed
Medisiss
Hygia Health Services
U.S.Disposable
Device Market$31.5B
EP Catheters
Compression Sleeves
External Fixation
Pulse OximeterSensors
Other
Devices that canbe safely
reprocessed
$3.6B Market
NotAddressed
CurrentlyAddressed
Reprocessing device market potential of $1.8B(based on 50% of cost of new devices)
Stryker Overview 2010-2011
Neurovascular Segment Overview2010 Worldwide Neurovascular Market
24
Market Size $1.0 Billion
Market Growth 9%
Key Market Players
Boston Scientific
J&J (Micrus)
Covidien (ev3)
Terumo
Penumbra
Concentric
In Fiscal 2011, Stryker will participate in the blueshaded areas with the acquisition of BostonScientific's Neurovascular Division.
Embolic Coils
Aneurysm Stents
Ischemic Stents
RemodelingBalloons
Flow DiversionDevices
Liquid EmbolicSystems
RevascularizationDevicesSupport Devices
Stryker Overview 2010-2011
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Stryker Overview 2010-2011
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