Company overview 0
At a glance #287 on FORTUNE 500 S&P 500 included in the Standard & Poor s 500 Index $9.9B in annual global sales in 2015 27,000+ employees worldwide 36 straight years of sales growth 100+ countries where Stryker products are sold 44 manufacturing and research & development locations worldwide 4,898 patents owned globally in 2015 1
75 years of innovation Wedge Turning Frame 1937 Cast Cutter 1946 Dr. Homer H. Stryker Orthopaedic Surgeon and Inventor 2
75 years of innovation Circ-O-Lectric Bed 1958 Dr. Homer H. Stryker If your tools don t work, make them work. If you can t make them work, make some that do work. 3
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Depth and specialization 75+ years of innovation have led to a portfolio of more than 60,000 products. Orthopaedics Medical and surgical equipment Neurotechnology and spine Sports Medicine Hips Knees Power Tools & Surgical Equipment Computer Assisted Surgery Craniomaxillofacial Interventional Spine Reprocessing & Remanufacturing Robotic-Arm Assisted technology Trauma & Extremities Minimally Invasive Surgical Solutions Infrastructure & Integration Neurosurgical, Spine & ENT Neurovascular Foot & Ankle Sports Medicine Patient Care, Patient Handling & EMS Equipment Reprocessing & Remanufacturing Spinal Implants and Biologics 5 Note: Not all products and services are available in all global markets.
Mergers and acquisitions Color key: Core business Adjacency We continue to enhance our portfolio s depth and breadth with strategic mergers and acquisitions. Pending Synergetics USA s Neuro Portfolio Ivy Sports Medicine, LLC Concentric Patient Safety Vertebral Compression Fracture Portfolio from BD Orthovita Trauson Berchtold CoAlign Muka Metal Safewire Restore Surgical LLC, d/b/a Instratek 2011 2012 2013 2014 2015 2016 2017 Memometal MAKO CHG Sage Products Surpass Pivot Stanmore Implants Worldwide Neurovascular Small Bone Innovations (SBi) Physio-Control International 6
A broad-based player in Medtech 7 Note: Mergers/Acquisitions in 2014/2015 Medtronic/Covidien Smith & Nephew/Arthrocare Stryker/Berchtold Steris/Synergy Health Wright Medical/Tornier Zimmer/Biomet Philips/Volcano Note: MAKO not included.
Consulting & implementation services Performance Solutions partners with hospitals and physician practices to improve quality outcomes, patient satisfaction and profitability. Implementation Programs Performance Intelligence Alignment Strategies Service Line Development Total Joint Inpatient Spine Geriatric Fracture Surgical Services Optimization Physician Strategies Hospital Reported Outcomes Patient Reported Outcomes Healthcare Reform Analytics Market Insight Manager Co-Management Agreements Transition-to-Risk Bundled Payments Accountable Care Organizations Physician Strategies Assess Architect Assemble Assure 8
Services and systems We provide best-in-class service to meet the individual needs of your facility. ProCare Services Service from Stryker Dedicated support to manage workflow and improve operating room efficiency, or fundamental maintenance and service solutions for your capital equipment. Flex Financial Equipment Financing Programs 9
Business organization 10
A global mindset 11
Global recognition FORTUNE World s Most Admired Companies World s Most Admired Companies in Medical Products & Equipment Recipient for the 15 th consecutive year, #5 in 2016 Gallup Great Workplace Award Recipient for the ninth time in 2016 UK The Sunday Times Best Companies to Work For Stryker UK Ltd. recipient for the tenth consecutive year at #32 LinkedIn Top Attractors 2016 First-of-its-kind list ranked #12 MedReps.com Best Places to Work in Medical Sales Ranked #3 in 2016; fifth time on list Best Workplaces in Spain 2016 Great Place to Work Institute Spain First time on the list - ranked #9 Top Employer Schweiz/Suisse 2016 Top Employers Institute Certification for Stryker s GmbH location Best Workplaces in Canada 2016 Great Place to Work Institute Canada Ranked #25 - recipient for the seventh consecutive year Best Workplaces in Australia 2016 Great Place to Work Institute Australia Ranked #2, third time on list FORTUNE 100 Best 100 Best Companies to Work For in U.S. Recipient for the sixth consecutive year, ranked #21 in 2016 Glassdoor Best Places to Work Employees Choice Award Recipient for the third year 2016 Best Workplaces Manufacturing & Production First time on the list, ranked #4 out of 15 companies FORTUNE 500 Largest U.S.-Based Companies Joined the list in 2003 as #493, moved to #287 in 2016 12
Commitment to social responsibility Our business is built on sustainability making longterm contributions, in a responsible way, to our customers and their patients, to our employees, to our communities, to our environment and to our shareholders. Stryker employees participated in the playground rebuild of the Palabra Viva Church in Las Vegas, Nevada, during the 2015 American Academy of Orthopaedic Surgeons (AAOS). 13
Global outreach Yin Becker, Vice President, Communications, Public Affairs and Strategic Marketing, participated in an Operation Smile mission to Bolivia in the fall of 2015 We support numerous organizations around the globe to increase access to healthcare and make healthcare better. Examples: CURE International Transforms the lives of children with disabilities and their families in the developing world Operation Smile Repairs childhood facial deformities and restores smiles Operation Walk Provides free surgical treatment in developing countries with no access to life-improving care for arthritis or other debilitating bone and joint conditions United Way Worldwide network helping individuals and families achieve their human potential through education, income stability and healthy lives 14
LEED and BREEAM Leadership in Energy and Environmental Design and Building Research Establishment Environmental Assessment Method Four Stryker facilities have earned LEED certification and two have earned BREEAM certification: Venlo, Netherlands Very Good Rating First distribution center in Europe Suzhou, China New Construction One of the first five facilities in China to achieve this rating Portage, Michigan Existing Buildings: Operations & Maintenance First manufacturing facility in Michigan to receive this certification Mahwah, New Jersey Existing Buildings: Operations & Maintenance Largest Stryker manufacturing facility to receive this certification Portage, Michigan Interior Design & Construction Our first leased office facility to receive this award Newbury, Berkshire, UK Excellent Rating Post construction review of Stryker s new United Kingdom office 15
Our quality policy At Stryker, quality is first in everything we do. We are driven to make healthcare better for our customers by providing innovative products and services that meet regulatory requirements through our effective quality system. 16
Customer experience Stryker offers medical education and a variety of other programs and services designed to help customers perform their jobs and run their business more efficiently and effectively. The better we understand our customers, the better we can serve them. 17
Innovation Together we develop innovative products and services that improve the lives of caregivers and patients. $625m spent on research and development in 2015, which was 6.3% of sales 4,898+ patents owned globally in 2015 11 15 11 15 Y/Y % Chg 17.3 1.9 13.8 14.6 1.8 18
People development Our strategy for attracting and retaining great people globally and building an engaged, high-performing workforce consists of: Babajide Daranijoh Director, ERP Process Lead Partnering with Gallup to select, retain and train top talent Partnering with top universities, like Harvard Business School, for our employees education and development Antonio Ochoa Assistant Treasurer, International & FX Valuing diversity and inclusion of a wide range of ideas, cultures and backgrounds Offering career paths based on strengths, capabilities, experiences and performance. We grow talent. Meg Smith VP of Advanced Operations 19
Financial results $10 billion $9 billion $9.9 billion annual sales globally in 2015 $8 billion $7 billion $6 billion 18% CAGR in sales over 36-year period $5 billion $4 billion $3 billion 36 Straight years of sales growth $2 billion $1 billion 79 15 Non-GAAP financial measure. See the reconciliation of GAAP Diluted Net Earnings Per Share to Adjusted Diluted Net Earnings Per Share in the appendix. 20
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