factbook 2007-2008

Fa

ct Book

2007-2008

Investor RelationsKatherine A. Owen Vice President, Strategy and Investor Relations Public & Media RelationsJ. Patrick Anderson Vice President, Corporate Affairs 2825 Airview Boulevard Kalamazoo, MI 49002 t: 269 385 2600

Table of Contents

Stryker Overview Company Leadership............................................................................................................ 2 Summary of Results Years Ending December 31 ................................................................ 3 Net Sales as Reported........................................................................................................... 4 Net Earnings as Reported ..................................................................................................... 5 Adjusted Net Earnings from Continuing Operations............................................................ 6 Diluted Net Earnings per Share as Reported ........................................................................ 7 Adjusted Diluted Net Earnings per Share from Continuing Operations............................... 8 2007 Product Portfolio Sales................................................................................................ 9 2007 Orthopaedic Implant Product Sales ............................................................................. 10 2007 MedSurg Equipment Sales .......................................................................................... 11 2007 Sales by Geography..................................................................................................... 12

Market Segment Overview Medical Technology Market Overview

2007 Worldwide Market ...................................................................................................... 14

Orthopaedic Market Segment Overview 2007 Worldwide Market by Product .................................................................................... 15 2007 Worldwide Market by Company ................................................................................. 16 2007 Worldwide Market by Geography............................................................................... 17

Orthopaedic Implant Segment Overview 2007 Worldwide Reconstructive Market.............................................................................. 18 2007 Worldwide Spinal Market ........................................................................................... 19 2007 Worldwide Trauma & Craniomaxillofacial Market .................................................... 20 2007 Worldwide Orthobiologics Market.............................................................................. 21

MedSurg Equipment Segment Overview 2007 Worldwide Operating Room Equipment Market ........................................................ 22 2007 Worldwide Endoscopy Market.................................................................................... 23 2007 North American Patient Handling Market................................................................... 24

__________________________________ Fact Book 2007-2008

Stryker Overview

_______________________ Fact Book 2007-2008 1

Company Leadership

John W. Brown Chairman of the Board

Stephen P. MacMillan President and Chief Executive Officer

J. Patrick Anderson Vice President, Corporate Affairs

Dean H. Bergy Vice President and Chief Financial Officer

Xavier Berling Representative Director and President, Japan

Patrick J. Beyer President, EMEA (Europe, Middle East, Africa)

Lonny J. Carpenter Vice President and General Manager, Medical

James L. Cunniff President, Pacific

William R. Enquist President, Global Endoscopy

Andrew Fox-Smith President, International

Curtis E. Hall, Esq. Vice President and General Counsel

Curt R. Hartman President, Global Instruments

Stephen Si Johnson Vice President, Group President, MedSurg

James E. Kemler Vice President, Group President, Biotech, Osteosynthesis and Development

Ronald L. Lancaster Vice President, Development

Edward B. Lipes Executive Vice President

Lee D. Lovely Vice President and General Manager, Canada and Latin America

Eric Lum Vice President, Tax

Vivian Masson President, Osteosynthesis

Michael P. Mogul President, Orthopaedics

Katherine A. Owen Vice President, Strategy and Investor Relations

James B. Praeger Controller

Michael W. Rude Vice President, Human Resources

Timothy J. Scannell President, Spine

Elizabeth A. Staub Vice President, Regulatory Affairs and Quality Assurance

Bronwen R. Taylor Vice President, Internal Audit and Compliance

Thomas R. Winkel Vice President and Secretary

Bryant S. Zanko Vice President, Business Development

_______________________ Fact Book 2007-2008 2

Stryker Overview

Summary of Results Years Ending December 31

As Reported

2007 2006 % ChangeNet Sales $6,001 $5,147 17%Net Earnings 1,017 778 31%Diluted Net Earnings per Share 2.44 1.89 29%Dividends per Share 0.33 0.22 50%

Adjusted Results

2007 2006 % ChangeNet Sales $6,001 $5,147 17%Adjusted Net Earnings from Continuing Operations¹ 999 824 21%Adjusted Diluted Net Earnings per Sharefrom Continuing Operations² 2.40 2.00 20%Adjusted Return on Sales 17% 16%Adjusted Return on Average Equity 21% 22%

$ in millions (except per share amounts)1. See page 6 for the reconciliation to adjusted net earnings from continuing operations.2. See page 8 for the reconciliation to adjusted diluted net earnings per share from continuing operations.

__________________________________ Fact Book 2007-2008 3

Stryker Overview Net Sales as Reported

AG

__Fa

$ in Millions

987

1,982 2,1422,421

2,8103,402

4,017

4,609

5,147

6,001

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

nnual rowth Rate 12% 101% 8% 13% 16% 21% 18% 15% 12% 17%

________________________________ ct Book 2007-2008 4

Stryker Overview Net Earnings as Reported

AG

_F

$ in Millions

5814

211255

329

434 440

644

778

1,017

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

nnual rowth Rate (53)% (76)% N.M. 21% 29% 32% 1% 46% 21% 31%

N.M. = Not Meaningful

_________________________________ act Book 2007-2008 5

Stryker Overview Adjusted Net Earnings from Continuing Operations*

$ in Millions

134 162210

257

325

419

559

676

824

999

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Annual Growth Rate 13% 21% 29% 22% 26% 29% 33% 21% 22% 21%

* RECONCILIATION TO ADJUSTED NET EARNINGS FROM CONTINUING OPERATIONS ($ Millions)

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Reported Net Earnings $57.5 $13.7 $211.1 $255.2 $328.5 $434.4 $440.0 $643.6 $777.7 $1,017.4

Adjustments (Net of Tax):Inventory Step-Up in Cost of Sales 5.1 129.0 - - - - - - - -Goodwill/Workforce Intangible Amortization 2.2 10.1 10.9 11.0 - - - - - -Purchased In-Process Research & Development 55.0 - - - - - 120.8 15.9 52.7 -Income Taxes on Repatriation of Foreign Earnings - - - - - - - 27.4 - -Acquisition-Related, Restructuring and Special Charges (Credits) 21.8 12.3 (0.7) 0.4 11.5 - - - - -Extraordinary Loss - - - 4.8 - - - - - -Intangible Asset Impairment - - - - - - - - - 1Net Earnings and Gain on Sale of Discontinued Operations (7.2) (2.8) (11.4) (14.6) (15.2) (15.8) (2.0) (11.1) (6.3) (30.7)

Subtotal 76.9 148.6 (1.2) 1.6 (3.7) (15.8) 118.8 32.2 46.4 (18.0)Adjusted Net Earnings from Continuing Operations $134.4 $162.3 $209.9 $256.8 $324.8 $418.6 $558.8 $675.8 $824.1 $999.4

2.7

__________________________________ Fact Book 2007-2008 6

Stryker Overview Diluted Net Earnings per Share as Reported

0.150.03

0.520.63

0.81

1.07 1.08

1.57

1.89

2.44

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

$2.40

$2.60

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Annual Growth Rate (52)% (80)% N.M. 21% 29% 32% 1% 45% 20% 29%

N.M. = Not Meaningful

__________________________________ Fact Book 2007-2008 7

Stryker O

0.34

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

$2.40

$2.60

1998

Annual Growth Rate 13%

* RECONCILIATION TO A

Reported Diluted Net Earnings per Sha

Adjustments (Net of Tax):Inventory Step-Up in Cost of SalesGoodwill/Workforce Intangible AmPurchased In-Process Research & DIncome Taxes on Repatriation of FAcquisition-Related, RestructuringExtraordinary LossIntangible Asset ImpairmentNet Earnings and Gain on Sale of D

Subtotal

Adjusted Diluted Net Earnings per Sha

___________________________Fact Book 200

verview Adjusted Diluted Net Earnings per Share from Continuing Operations*

0.41 0.520.63

0.80

1.03

1.37

1.65

2.00

2.40

1999 2000 2001 2002 2003 2004 2005 2006 2007

21% 27% 21% 27% 29% 33% 20% 21% 20%

DJUSTED DILUTED NET EARNINGS PER SHARE FROM CONTINUING OPERATIONS

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007re $0.15 $0.03 $0.52 $0.63 $0.81 $1.07 $1.08 $1.57 $1.89 $2.44

0.01 0.32 - - - - - - - -ortization 0.01 0.03 0.03 0.03 - - - - - -evelopment 0.14 - - - - - 0.30 0.04 0.13

oreign Earnings - - - - - - - 0.07 - and Special Charges (Credits) 0.06 0.03 - - 0.03 - - - - -

- - - 0.01 - - - - - -- - - - - - - - - 0

iscontinued Operations (0.02) (0.01) (0.03) (0.04) (0.04) (0.04) - (0.03) (0.02) (0.07)

0.20 0.37 - - (0.01) (0.04) 0.29 0.08 0.11 (0.04)

re from Continuing Operations $0.34 $0.41 $0.52 $0.63 $0.80 $1.03 $1.37 $1.65 $2.00 $2.40

--

.03

_______ 7-2008 8

Stryker Overview 2007 Product Portfolio Sales

Knees

Hips

Other Reconstructive

Endoscopy

Spinal

Medical Beds & Stretchers

Trauma and Craniomaxillofacial

Operating RoomEquipment

Orthopaedic Implants

60%

MedSurg Equipment

40%

__________________________________ Fact Book 2007-2008 9

MedSurg Equipment Orthopaedic Implants

$ in Millions

2007 2006 % ChangeConstant Currency

Orthopaedic Implants $3,571 $3,110 15% 12%MedSurg Equipment 2,430 2,037 19% 17%

Total $6,001 $5,147 17% 14%

Stryker Overview 2007 Orthopaedic Implant Product Sales

Other Reconstructive

Hips

Knees

Spinal

Trauma andCraniomaxillofacial

60% of Total Company Sales

1,191*1,334 1,406

1,537

1,798

2,192

2,5562,850

3,110

3,571

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

$ in Millions

Annual Growth Rate N.M. 12% 5% 9% 17% 22% 17% 12% 9% 15%

* Proforma results assuming 12 months of sales for both Stryker and Howmedica. Orthopaedic Implant product sales as reported in 1998 were $410 million. N.M. = Not Meaningful

__________________________________ Fact Book 2007-2008 10

Stryker Overview 2007 MedSurg Equipment Sales

Operating Room Equipment

Medical Beds & Stretchers

Endoscopy

40% of Total Company Sales

597* 648736

8841,012

1,210

1,461

1,759

2,037

2,430

0

300

600

900

1,200

1,500

1,800

2,100

2,400

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

$ in Millions

Annual Growth Rate N.M. 9% 14% 20% 14% 20% 21% 20% 16% 19%

* Proforma results assuming 12 months of sales for both Stryker and Howmedica. MedSurg equipment sales as reported in 1998 were $577 million. N.M. = Not Meaningful

__________________________________ Fact Book 2007-2008 11

Stryker Overview 2007 Sales by Geography

EMEA Region

Japan

United States

__________________________________ Fact Book 2007-2008 12

Canada &Latin America Region

Pacific Region

United States: 64%

International: 36%

$ in Millions

2007 2006 % ChangeConstant Currency

United States $3,851 $3,298 17% 17%International 2,150 1,849 16% 9%Total $6,001 $5,147 17% 14%

Market Segment

Overview 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.

__________________________________ Fact Book 2007-2008 13

Medical Technology Market Overview 2007 Worldwide Market

Top Medical Technology Companies ($ in Billions)

Rank Company

Total Estimated Med Tech

Sales

Total Estimated Company

Sales1. J&J 21.7 61.12. G.E. 17.0 172.73. Siemens 14.2 101.64. Medtronic 12.9 12.95. Baxter 11.3 11.36. Covidien 10.4 10.47. Philips 8.9 36.78. Boston Scientific 8.4 8.49. Abbott 6.3 25.910. Stryker 6.0 6.011. Becton Dickinson 5.5 6.612. Cardinal Health 5.0 89.413. B. Braun 4.5 4.514. 3M 4.0 24.515. Zimmer 3.9 3.916. St. Jude 3.8 3.817. Smith & Nephew 3.4 3.417. Hospira 3.4 3.419. Olympus 2.9 9.720. Beckman Coulter 2.8 2.821. Synthes 2.7 2.722. Terumo 2.6 2.622. Fresenius 2.6 9.724. Onex 2.5 2.524. Alcon 2.5 5.626. C.R. Bard 2.2 2.226. Biomet 2.2 2.228. Dentsply 2.0 2.029. Varian Medical 1.8 1.8

__________________________________ Fact Book 2007-2008 14

Orthopaedic Market Segment Overview 2007 Worldwide Market by Product

Operating Room Equipment

Reconstructive Joint Replacement

Hyaluronic Acid

Other

ArthroscopyOrthobiologics

Trauma and Craniomaxillofacial

Spinal

Market Size: $31.6 Billion

$ Growth: 11%

Stryker participates in shaded areas above

Estimated ($ in Billions)

SalesPercent

of MarketGrowth

Rate$5.9 19% 11%

Spinal Devices 5.1 16% 11%5.0 16% 11%

Trauma & Craniomaxillofacial 4.4 14% 12%2.5 8% 13%

Hyaluronic Acid 1.0 3% 9%0.9 3% 19%

$24.8 79% 12%

SalesPercent

of MarketGrowth

RateOperating Room Equipment $3.0 9% 11%Arthroscopy 2.4 8% 11%Other 1.4 4% 3%Subtotal $6.8 21% 9%

Total Orthopaedic Market $31.6 100% 11%

Equipment & Other

Orthobiologics

Subtotal

ImplantsKnees

Hips

Extremities & Bone Cement

__________________________________ Fact Book 2007-2008 15

Orthopaedic Market Segment Overview 2007 Worldwide Market by Company

Zimmer

J&J

Synthes

Other

Smith & Nephew

Biomet Stryker

Medtronic


$ Growth: 11%


Company Total SalesOrthopaedic

SalesOrthopaedic

Market ShareOrthopaedic Growth Rate

Stryker $6.0 $5.0 16% 16%

J&J 61.1 4.0 13% 10%

Zimmer 3.9 3.7 12% 11%

Medtronic* 12.9 3.3 10% 9%

Synthes 2.7 2.7 9% 13%

Smith & Nephew* 3.4 2.6 8% 16%

Biomet 2.2 1.9 6% 5%

Other N/A 8.4 26% 9%

Total Market N/A $31.6 100% 11%

* Proforma

__________________________________ Fact Book 2007-2008 16

Orthopaedic Market Segment Overview 2007 Worldwide Market by Geography

EMEA RegionUnited States

Japan

Pacific Region

Canada & Latin America Region


$ Growth: 11%

Stryker participates in all geographic markets


Geographic Market 2007Percent of

MarketGrowth

RateConstant Currency

Growth RateUnited States $19.7 62% 10% 10%

EMEA Region 7.9 25% 16% 7%

Pacific Region 1.6 5% 14% 7%

Japan 1.5 5% (5)% (3)%

Canada & Latin America Region 0.9 3% 10% 8%

Total Market $31.6 100% 11% 9%

__________________________________ Fact Book 2007-2008 17

Orthopaedic Implant Segment Overview 2007 Worldwide Reconstructive Market

Knees

Hips

Extremities & Bone Cement

__________________________________ Fact Book 2007-2008 18


$ Growth: 12%

Stryker Growth: 12%

Stryker participates in all segments above

CompanyEstimated

Market Share Zimmer 26%

J&J 21%

Stryker 20%

Smith & Nephew* 12%

Biomet 10%

Other 11%

* Proforma

Orthopaedic Implant Segment Overview 2007 Worldwide Spinal Market

Cervical

Electrical Stimulation

Interbody Devices

Thoracolumbar

Vertebral Compression Fractures

__________________________________ Fact Book 2007-2008 19


$ Growth: 11%

Stryker Growth: 24%


Company Medtronic*

J&J

Synthes

Stryker

Biomet

Zimmer

Other 13%

9%

4%

4%

EstimatedMarket Share

41%

16%

13%

* Proforma

Orthopaedic Implant Segment Overview 2007 Worldwide Trauma & Craniomaxillofacial Market

Upper Extremity Hip Fracture

Foot, Deformities,

Pediatric

Craniomaxillofacial & Neuro

Lower Extremity


$ Growth: 12%

Stryker Growth: 18%


CompanyEstimated

Market Share

Synthes 41%

Stryker 17%

Smith & Nephew* 9%

J&J 6%

Zimmer 5%

Biomet 4%

Other 18% * Proforma

__________________________________ Fact Book 2007-2008 20

Orthopaedic Implant Segment Overview 2007 Worldwide Orthobiologics Market

__________________________________ Fact Book 2007-2008 21

Synthetics

Allograft

Growth Factors

Blood Based & Ortho Stem Cells


$ Growth: 13%

Stryker Growth: 24%


Demineralized Bone Matrix

CompanyEstimated

Market Share Medtronic 36% Synthes 7% J&J 5% Stryker 5% Osteotech 4% Other 43%

MedSurg Equipment Segment Overview 2007 Worldwide Operating Room Equipment Market

Surgical Equipment Navigation

Powered Instruments


$ Growth: 11%

Stryker Growth: 19%


CompanyEstimated

Market Share

Stryker 33%

Medtronic 8%

Zimmer 8%

Conmed 5%

J&J 3%

Other 43%

__________________________________ Fact Book 2007-2008 22

MedSurg Equipment Segment Overview 2007 Worldwide Endoscopy Market

__________________________________ Fact Book 2007-2008 23

Disposables

lexible Scopes

Cameras

Video Support

Other

Rigid

ments

OtherIncluding Sutures,

Suture instrumentation, Surgical staples, GI tract stents

Flexible Scopes

Cameras Disposables

Video Support

Electrosurgical ScopesElectrosurgical

Rigid Scopes

Implants & Instru

Implants & Instruments


$ Growth: 12%

Stryker Growth: 21%


CompanyJ&J

Olympus

Covidien

Boston Scientific

Stryker

Smith & Nephew

Karl Storz

Other 20%

5%

4%

4%

9%

EstimatedMarket Share

18%

25%

15%

MedSurg Equipment Segment Overview 2007 North American Patient Handling Market

__________________________________ Fact Book 2007-2008 24

EMS

Patient HandlingRecovery Transport Surgical

Rentals

Patient RoomMed/Surg Maternity

Critical Care Furniture


$ Growth: 8%

Stryker Growth: 16%


Furniture

CompanyEstimated

Market Share Hill-Rom 46%

Stryker 27%

KCI 10%

Ferno-Washington 2%

Other 15%

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Joint Replacements

Trauma, Extremities and Deformities

Craniomaxillofacial

Spine

Biologics

Surgical Procedures

Neuro & ENT

Interventional Spine

Navigation

Endoscopy

Communications

Imaging

Patient Handling Equipment

EMS Equipment

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factbook 2007-2008

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