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


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


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 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


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


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 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


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


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


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 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


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


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


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 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


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


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)*


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


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 Growth 5%

Stryker

J&J Zimmer

Medtronic

Synthes

Smith & Nephew

Biomet

Other


Orthopaedic Implant Segment Overview2010 Worldwide Reconstructive Market

16


Market Growth 4%

Stryker Growth 4%


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


Orthopaedic Implant Segment Overview2010 Worldwide Spinal Market

17


Market Growth 1%

Stryker Growth 3%


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



Orthopaedic Implant Segment Overview2010 Worldwide Trauma & Craniomaxillofacial

18


Market Growth 8%

Stryker Growth 7%


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



Orthopaedic Implant Segment Overview2010 Worldwide Orthobiologics Market

19


Market Growth 10%

Stryker Growth (11%)


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



MedSurg Equipment Segment Overview2010 Worldwide Operating Room Equipment

20


Market Growth 6%

Stryker Growth 7%


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



MedSurg Equipment Segment Overview2010 Worldwide Endoscopy Market

21


Market Growth 6%

Stryker Growth 7%


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



MedSurg Equipment Segment Overview2010 North American Patient Handling Market

22


Market Growth 11%

Stryker Growth 21%


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



MedSurg Equipment Segment Overview2010 U.S. Medical Device Reprocessing Market

23


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)


Neurovascular Segment Overview2010 Worldwide Neurovascular Market

24


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


This page intentionally left blank.


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

2010-11 syk fact book final 042511 (1)

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