Emerging Stock Markets Factbook 1999 (Global Stock Markets Factbook)
Factbook 2007-2008
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Transcript of 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
Market Size: $31.6 Billion
$ Growth: 11%
Estimated ($ in Billions)
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
Market Size: $31.6 Billion
$ Growth: 11%
Stryker participates in all geographic markets
Estimated ($ in Billions)
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
Market Size: $11.8 Billion
$ 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
Market Size: $5.1 Billion
$ Growth: 11%
Stryker Growth: 24%
Stryker participates in shaded areas above
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
Market Size: $4.4 Billion
$ Growth: 12%
Stryker Growth: 18%
Stryker participates in all segments above
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
Market Size: $2.5 Billion
$ Growth: 13%
Stryker Growth: 24%
Stryker participates in shaded areas above
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
Market Size: $3.0 Billion
$ Growth: 11%
Stryker Growth: 19%
Stryker participates in all segments above
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
Market Size: $16.5 Billion
$ Growth: 12%
Stryker Growth: 21%
Stryker participates in shaded areas above
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
Market Size: $1.8 Billion
$ Growth: 8%
Stryker Growth: 16%
Stryker participates in shaded areas above
Furniture
CompanyEstimated
Market Share Hill-Rom 46%
Stryker 27%
KCI 10%
Ferno-Washington 2%
Other 15%
This page intentionally left blank.
Joint Replacements
Trauma, Extremities and Deformities
Craniomaxillofacial
Spine
Biologics
Surgical Procedures
Neuro & ENT
Interventional Spine
Navigation
Endoscopy
Communications
Imaging
Patient Handling Equipment
EMS Equipment
Copyright © 2008 Stryker
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