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Fact Book
2006-2007
Investor RelationsKatherine A. OwenVice President, Strategyand Investor Relations
Public & Media RelationsJ. Patrick AndersonVice President, Corporate Affairs
2825 Airview BoulevardKalamazoo, MI 49002t: 269 385 2600
Fact Book 2006-2007
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
2006 Product Portfolio Sales ....................................................................................................................................................9
2006 Orthopaedic Implant Product Sales .............................................................................................................................10
2006 MedSurg Product Sales..................................................................................................................................................11
2006 Sales by Geography ........................................................................................................................................................12
Market Overview
Medical Technology Market Overview
Worldwide Market ..................................................................................................................................................................14
Orthopaedic Market Overview
Worldwide Market by Company ...........................................................................................................................................15
Worldwide Market by Product ..............................................................................................................................................16
Worldwide Market by Geography .........................................................................................................................................17
Orthopaedic Implant Overview
Worldwide Reconstructive Market ........................................................................................................................................18
Worldwide Spine Devices Market ..........................................................................................................................................19
Worldwide Trauma & Craniomaxillofacial Market ..............................................................................................................20
Worldwide Orthobiologics Market ........................................................................................................................................21
MedSurg Equipment Overview
Worldwide O.R. Equipment Market ......................................................................................................................................22
Worldwide Endoscopy Market ...............................................................................................................................................23
North American Patient Handling Market ...........................................................................................................................24
1 Fact Book 2006-2007
Stryker Overview
Company Leadership
2 Fact Book 2006-2007
John W. Brown Chairman
Stephen P. MacMillan President and Chief Executive Officer
J. Patrick Anderson Vice President, Corporate Affairs
Dean H. Bergy Vice President and Chief Financial Officer
Patrick J. Beyer President, EMEA
Lonny Carpenter Vice President and General Manager, Medical
Luciano Cattani Vice President, Group President, International
William R. Enquist President, Global Endoscopy
Andrew Fox-Smith President, Pacific
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, Spine, Osteosynthesis and Development
Ronald L. Lancaster Vice President, Development
J. Ronald Lawson Executive Vice President
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
Yoshiaki Nakazawa President, Japan
Katherine A. Owen Vice President, Strategy and Investor Relations
Mark A. Philip, Ph.D. President, Biotech
James B. Praeger Controller
Michael W. Rude Vice President, Human Resources
Timothy J. Scannell President, Spine
David J. Simpson Executive Vice President
Elizabeth A. Staub Vice President, Regulatory Affairs and Quality Assurance
Bronwen R. Taylor Chief Compliance Officer
Thomas R. Winkel Vice President and Secretary
Jeffrey R. Winter Vice President, Internal Audit
Bryant S. Zanko Vice President, Business Development
2006 2005 % Change
Net Sales $5,147 $4,609 12%
Adjusted Net Earnings from Continuing Operations1 824 676 22%
Adjusted Diluted Net Earnings per Share from Continuing Operations2 2.00 1.65 21%
Adjusted Return on Sales 16% 15%
Adjusted Return on Average Equity 22% 22%
Stryker Overview Summary of Results Years Ending December 31
$ 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
Adjusted Results
3 Fact Book 2006-2007
2006 2005 % Change
Net Sales $5,147 $4,609 12%
Net Earnings 778 644 21%
Diluted Net Earnings per Share 1.89 1.57 20%
Dividends per Share 0.22 0.11 100%
As Reported
Stryker Overview Net Sales as Reported*
* All sales after December 4, 1998 include Howmedica
4 Fact Book 2006-2007
880 987
1,9822,142
2,421
2,810
3,402
4,017
4,609
5,147
0
400
800
1,200
1,600
2,000
2,400
2,800
3,200
3,600
4,000
4,400
4,800
5,200
5,600
$ Millions
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
6% 12% 101% 8% 13% 16% 21% 18% 15% 12%AnnualGrowth Rate
$ Millions
19% (53)% (76)% N.M. 21% 29% 32% 1% 46% 21%AnnualGrowth Rate
124
58*
14*
211
255
329
440
644
778
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
850
434
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Stryker Overview Net Earnings as Reported*
* 1998 and 1999 include Howmedica acquisition-related costs and charges N.M. = Not Meaningful
5 Fact Book 2006-2007
119 134162
210
257
325
419
559
676
824
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
850
900
$ Millions
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
13%33% 21% 29% 22% 26% 29% 33% 21% 22%AnnualGrowth Rate
Stryker Overview Adjusted Net Earnings from Continuing Operations*
* ReCONCIlIAtION tO ADJuSteD Net eARNINgS FROM CONtINuINg OPeRAtIONS (Millions)
Reported Net Earnings
Adjustments (Net of tax): Inventory Step-Up in Cost of Sales Goodwill/Workforce Intangible Amortization Purchased In-Process Research & Development Income Taxes on Repatriation of Foreign Earnings Acquisition-Related, Restructuring and Special Charges (Credits) Extraordinary Loss Income from Discontinued Operations
Subtotal
Adjusted Net Earnings from Continuing Operations
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
$123.6 $ 57.5 $ 13.7 $211.1 $255.2 $328.5 $434.4 $440.0 $643.6 $777.7
– 5.1 129.0 – – – – – – – 1.9 2.2 10.1 10.9 11.0 – – – – – – 55.0 – – – – – 120.8 15.9 52.7 – – – – – – – – 27.4 – – 21.8 12.3 (0.7) 0.4 11.5 – – – – – – – – 4.8 – – – – – (6.7) (7.2) (2.8) (11.4) (14.6) (15.2) (15.8) (2.0) (11.1) (6.3)
(4.8) 76.9 148.6 (1.2) 1.6 (3.7) (15.8) 118.8 32.2 46.4
$118.8 $134.4 $162.3 $209.9 $256.8 $324.8 $418.6 $558.8 $675.8 $824.1
6 Fact Book 2006-2007
Stryker Overview Diluted Net Earnings per Share as Reported*
0.31
0.15*
0.03*
0.52
0.63
0.81
1.07 1.08
1.57
1.89
$0.00
$0.15
$0.30
$0.45
$0.60
$0.75
$0.90
$1.05
$1.20
$1.35
$1.50
$1.65
$1.80
$1.95
$2.10
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
19% (52)% (80)% N.M. 21% 27% 32% 1% 45% 20%AnnualGrowth Rate
7 Fact Book 2006-2007
* 1998 and 1999 include Howmedica acquisition-related costs and charges N.M. = Not Meaningful
Stryker Overview Adjusted Diluted Net Earnings per Share
from Continuing Operations*
* ReCONCIlIAtION tO ADJuSteD Net eARNINgS PeR SHARe FROM CONtINuINg OPeRAtIONS (Millions)
Reported Diluted Net Earnings per Share
Adjustments (Net of tax): Inventory Step-Up in Cost of Sales Goodwill/Workforce Intangible Amortization Purchased In-Process Research & Development Income Taxes on Repatriation of Foreign Earnings Acquisition-Related, Restructuring and Special Charges (Credits) Extraordinary Loss Income from Discontinued Operations
Subtotal
Adjusted Diluted Net Earnings per Share from Continuing Operations
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
$ 0.31 $ 0.15 $ 0.03 $ 0.52 $ 0.63 $ 0.81 $ 1.07 $ 1.08 $1.57 $1.89
– 0.01 0.32 – – – – – – – – 0.01 0.03 0.03 0.03 – – – – – – 0.14 – – – – – 0.30 0.04 0.13 – – – – – – – – 0.07 – – 0.06 0.03 – – 0.03 – – – – – – – – 0.01 – – – – – (0.02) (0.02) (0.01) (0.03) (0.04) (0.04) (0.04) – (0.03) (0.02)
(0.01) 0.20 0.37 – – (0.01) (0.04) 0.29 0.08 0.11
$ 0.30 $ 0.34 $ 0.41 $ 0.52 $ 0.63 $ 0.80 $ 1.03 $ 1.37 $1.65 $2.00
8 Fact Book 2006-2007
0.30 0.340.41
0.520.63
0.80
1.03
1.37
1.65
2.00
$0.00
$0.15
$0.30
$0.45
$0.60
$0.75
$0.90
$1.05
$1.20
$1.35
$1.50
$1.65
$1.80
$1.95
$2.10
13%30% 21% 27% 21% 27% 29% 33% 20% 21%AnnualGrowth Rate
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Stryker Overview 2006 Product Portfolio Sales
9 Fact Book 2006-2007
2006 2005 % Change
Orthopaedic Implants $3,110 $2,850 9%
MedSurg Products 2,037 1,759 16%
Total $5,147 $4,609 12%
$ Millions
Knees
Operating RoomEquipment
Trauma & Craniomaxillofacial
Medical Beds& Stretchers
Spine
Endoscopy
Other ReconstructiveHips
Orthopaedic Implants
60%
MedSurgProducts
40%
MedSurg Products Orthopaedic Implants
0
500
1,000
1,500
2,000
2,500
3,000
3,500
$ Millions
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
376
1,116*1,334 1,406
1,5371,798
2,193
2,5562,850
3,110
7% N.M. 20% 5% 9% 17% 22% 17% 12% 9%AnnualGrowth Rate
Stryker Overview 2006 Orthopaedic Implant Product Sales
* 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
60% of Total Company Sales
Knees
Trauma &Craniomaxillofacial
SpineHips
Other Reconstructive
10 Fact Book 2006-2007
Stryker Overview 2006 MedSurg Product Sales
Operating RoomEquipment
Endoscopy
Medical Beds & Stretchers
* Proforma results assuming 12 months of sales for both Stryker and Howmedica. MedSurg product sales as reported in 1998 were $578 million.
1997 1998 1999 2000 2001 2002 2003 2004 2005 20060
500
1,000
1,500
2,000
2,500
504672* 648
736884
1,0121,210
1,461
1,759
2,037
$ Millions
5% 33% (4)% 14% 20% 14% 20% 21% 20% 16%AnnualGrowth Rate
11 Fact Book 2006-2007
40% of Total Company Sales
Stryker Overview 2006 Sales by Geography
united States: 64%
International: 36%
Europe
Pacific
Canada & Latin America
United States
Japan
12 Fact Book 2006-2007
2006 2005 % Change Constant Currency
U.S. $3,298 $2,903 14% 14%
International 1,849 1,706 8% 9%
Total $5,147 $4,609 12% 12%
$ Millions
13 Fact Book 2006-2007
Market Overview
14 Fact Book 2006-2007
Medical Technology Market Overview 2006 Worldwide Market
Top Medical Technology Companies ($ Billions)
total total Med tech Company Rank Company Sales Sales
1. J&J 20.3 53.3
2. G.E. 16.6 163.4
3. Medtronic 12.1 12.1
4. Siemens 10.5 111.0
5. Baxter 10.4 10.4
6. Philips 8.5 33.9
7. Boston Scientific 8.5 8.5
8. Tyco 7.7 41.7
9. Stryker 5.1 5.1
10. Becton, Dickinson & Co. 5.0 5.9
11. B. Braun 4.0 4.0
12. Zimmer 3.5 3.5
13. St. Jude 3.3 3.3
14. 3M 3.2 22.9
15. Smith & Nephew 2.8 2.8
16. Hospira 2.7 2.7
17. Kodak 2.5 13.3
18. Synthes 2.4 2.4
19. Terumo 2.3 2.3
20. Alcon 2.2 4.8
21. Biomet 2.1 2.1
22. Fresenius 2.1 8.4
23. C.R. Bard 2.0 2.0
24. Dentsply 1.8 1.8
25. Invacare 1.5 1.5
J&J
Zimmer
Synthes
Smith & Nephew
Other
BiometStryker
Medtronic
Orthopaedic Market Overview 2006 Worldwide Market by Company
Market Size: $28.6 Billion
$ growth: 9%
15 Fact Book 2006-2007
Estimated ($ Billions) total Orthopaedic Orthopaedic Orthopaedic Company Sales Sales Market Share growth Rate
Stryker $5.1 $4.3 15% 10%
J&J 53.3 3.8 13% 7%
Zimmer 3.5 3.3 12% 6%
Medtronic 12.1 2.6 9% 14%
Synthes 2.4 2.4 8% 15%
Smith & Nephew 2.8 2.0 7% 11%
Biomet 2.1 1.8 6% 5%
Other ––– 8.4 30% 9%
total Market N/A $28.6 100% 9%
SpineDevices
Orthobiologics Arthroscopy
Other
Reconstructive Joint Replacement
Operating RoomEquipment
Trauma & Craniomaxillofacial
Orthopaedic Market Overview 2006 Worldwide Market by Product
Market Size: $28.6 Billion
$ growth: 9%
Stryker participates in shaded areas
16 Fact Book 2006-2007
Implants Sales Percent growth of Market Rate
Knees $5.2 18% 7%
Spine Devices 4.7 16% 10%
Hips 4.5 16% 5%
Trauma & Craniomaxillofacial 3.9 14% 10%
Orthobiologics 3.2 11% 16%
Other Implants & Bone Cement 0.8 3% 7%
Subtotal $22.3 78% 9%
equipment & Other Sales Percent growth of Market Rate
Operating Room Equipment $2.5 9% 8%
Arthroscopy 2.4 8% 13%
Other 1.4 5% 9%
Subtotal $6.3 22% 10%
total Orthopaedic Market $28.6 100% 9%
Estimated ($ Billions)
2006 Percent of growth Constant Currency Market Rate growth Rate
United States $18.3 64% 12% 12%
Europe 6.8 23% 6% 6%
Japan 1.6 6% (5)% 0%
Pacific 1.1 4% 6% 8%
Canada & Latin America 0.8 3% 11% 7%
total Market $28.6 100% 9% 10%
Estimated ($ Billions)
Europe
Pacific
Canada & Latin America
United States
Japan
Orthopaedic Market Overview 2006 Worldwide Market by Geography
Market Size: $28.6 Billion
$ growth: 9%
Stryker participates in all geographic markets
17 Fact Book 2006-2007
Orthopaedic Implant Overview 2006 Worldwide Reconstructive Market
Market Size: $10.5 Billion
$ growth: 6%
Stryker growth: 6%
Stryker participates in all segments
Knees
Hips
Other Implants& Bone Cement
18 Fact Book 2006-2007
Zimmer 26%
J&J (DePuy) 22%
Stryker 20%
Biomet 10%
Smith & Nephew 9%
Other 13%
estimated Company Market Share
Interbody Devices
Cervical
ElectricalStimulation
Thoraco-Lumbar
Vertebral CompressionFractures
Orthopaedic Implant Overview 2006 Worldwide Spine Devices Market
Market Size: $4.7 Billion
$ growth: 10%
Stryker growth: 17%
Stryker participates in shaded areas
19 Fact Book 2006-2007
estimated Company Market Share
Medtronic (Sofamor Danek) 34%
J&J (DePuy) 16%
Synthes 13%
Kyphon 9%
Stryker 8%
Biomet 4%
Zimmer 4%
Other 12%
Hip Fracture
Upper Extremity
Foot,Deformities,
Pediatric
Lower ExtremityCraniomaxillofacial Neuro
Orthopaedic Implant Overview 2006 Worldwide Trauma & Craniomaxillofacial Market
Market Size: $3.9 Billion
$ growth: 10%
Stryker growth: 13%
Stryker participates in all segments
20 Fact Book 2006-2007
estimated Company Market Share
Synthes 41%
Stryker 16%
Smith & Nephew 8%
J&J (DePuy) 6%
Zimmer 5%
Biomet 4%
Other 20%
Growth Factors
DemineralizedBone Matrix
Synthetics
HyaluronicAcid
Allograft
Blood Based
Orthopaedic Implant Overview 2006 Worldwide Orthobiologics Market
Market Size: $3.2 Billion
$ growth: 16%
Stryker growth: 26%
Stryker participates in shaded areas
21 Fact Book 2006-2007
estimated Company Market Share
Medtronic 23%
J&J (DePuy) 6%
Synthes 4%
Smith & Nephew 3%
Stryker 3%
Osteotech 3%
Other 58%
MedSurg Equipment Overview 2006 Worldwide O.R. Equipment Market
Market Size: $2.5 Billion
$ growth: 8%
Stryker growth: 12%
Stryker participates in all segments
Powered Instruments
SurgicalEquipment
Navigation
22 Fact Book 2006-2007
Stryker 33%
Medtronic 8%
Zimmer 6%
Conmed (Linvatec) 5%
J&J (DePuy) 4%
Other 44%
estimated Company Market Share
MedSurg Equipment Overview 2006 Worldwide Endoscopy Market
Market Size: $9.4 Billion
$ growth: 10%
Stryker growth: 19%
Stryker participates in shaded areas
Disposables
Rigid Scopes
Video Support
Electrosurgical
Implants &Instruments
Insufflators & Pumps
OtherCameras
Powered Instruments
Flexible Scopes
23 Fact Book 2006-2007
estimated Company Market Share
Olympus 21%
J&J (Ethicon, Mitek) 20%
Tyco (U.S. Surgical) 8%
Stryker 8%
Smith & Nephew 7%
Karl Storz 6%
Conmed (Linvatec) 5%
Other 25%
Hill-Rom 49%
Stryker 35%
Ferno-Washington 3%
Other 13%
estimated Company Market Share
Patient Handling Recovery Transport Surgical
Patient Room Med/Surg Maternity Critical Care Furniture
EMS
Other Furniture
MedSurg Equipment Overview 2006 North American Patient Handling Market
Market Size: $1.2 Billion
$ growth: 9%
Stryker growth: 18%
Stryker participates in all segments
24 Fact Book 2006-2007
This page is intentionally left blank.
Joint Replacements
TTrauma, Extremities and Deformities
Craniomaxillofacial
Spine
Biologics
Surgical Products
Neuro & ENT
Interventional Pain
Navigation
Endoscopy
Communications
Imaging
Patient Handling Equipment
EMS Equipment
Copyright © 2007 Stryker AB2.13.07 Printed in USA
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