Stryker Corporation · NYSE:SYK
Stryker — Jefferies 2015 Healthcare Conference
15 slides from Stryker's conference presentation, Jun 2, 2015
Slide 1: Stryker
STRYKER Adam T. Bisnett, Director, Investor Relations & Strategy June 2, 2015
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT Certain statements made in the presentation may contain information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ mat
Slide 3: Mission
MISSION TOGETHER WITH OUR CUSTOMERS, WE ARE DRIVEN MISSION TO MAKE HEALTHCARE BETTER. VALUES INTEGRITY ACCOUNTABILITY PEOPLE PERFORMANCE We do what’s right We do what we say We grow talent We deliver 3
Slide 4: Global Medtech Leader
GLOBAL MEDTECH LEADER Neuro Powered Instruments • Pursuing global market 3% CMF Knees 2% 14% leadership in three Neurovascular 5% segments Spine 8% Hips 13% Sustainability Solutions 2% 2014 Sales • Growing through Medical 8% $9.7B business unit Trauma & Extremities 13% specialization Endoscopy 14% O
Slide 5: Growth at the High End of Medtech
GROWTH AT THE HIGH END OF MEDTECH 7.0% Organic Revenue Growth* 5.8% 5.0 - 6.0% 6.0% 5.1% 5.0% 4.2% 4.0% 3.0% 2.6% 2.8% 2.4% 2.0% 1.0% 0.0% 2012 2013 2014 2015E MedTech Market** Stryker * Removes the impact of changes in foreign currency exchange rates, divestitures (not applicable to Stryker) and th
Slide 6: Key Growth Drivers: Robotic-Arm Assisted Surgery
KEY GROWTH DRIVERS Drive market adoption of robotic-arm assisted surgery Mako Total Hip Arthroplasty (THA) Mako Partial Knee Arthroplasty (PKA) 6
Slide 7: Key Growth Drivers: Expand Portfolio and Selling Teams
KEY GROWTH DRIVERS Expand portfolio and selling teams in high growth segments - Extremities, Neurotechnology, Sports Medicine ReUnion Shoulder Platform Trevo XP ProVue Retriever Pivot Hip Arthroscopy 7
Slide 8: Key Growth Drivers: International Growth
KEY GROWTH DRIVERS • Accelerate growth in Europe with Trans-Atlantic operating model • Expand Trauson outside of China • Continued expansion of emerging markets International (Developed) 2014 Sales United States • Recover in Japan 24% 68% $9.7B Emerging Markets 8% 8
Slide 9: Key Growth Drivers: Recent Acquisitions
KEY GROWTH DRIVERS Ramp up growth of recent acquisitions Patient Safety Technologies, Inc. Berchtold Holding AG Small Bone Innovations, Inc. (SBi) SurgiCount Safety-Sponge System Integrated MRI Suite, including Stryker STAR Total Ankle Replacement System Navigation 9
Slide 10: Focused on Innovation
FOCUSED ON INNOVATION • Demonstrating commitment to internal innovation +12% 4 Year CAGR R&D* Nearly 2x the MedTech • Driving innovation with average R&D CAGR** products and services • Focused on improved outcomes & delivering greater cost savings/efficiencies * 4 year CAGR is for periods 2011 – 201
Slide 11: Operating Leverage Initiatives
OPERATING LEVERAGE INITIATIVES • Amplify the GQ&O cost reduction program • Reduce inventories through product rationalization • Drive SG&A savings via shared services • Simplify and rationalize our information technology footprint 11
Slide 12: Continued Strength Through M&A
CONTINUED STRENGTH THROUGH M&A Ascent Patient Safety Technologies Porex Concentric OtisMed Trauson Pivot Medical CHG Hospital Beds Orthovita 2009 2010 2011 2012 2013 2014 2015 Memometal MAKO Gaymar Small Bone Surpass Innovations Sonopet Berchtold Holding Neurovascular • Targeting core and key adjace
Slide 13: Capital Deployment
CAPITAL DEPLOYMENT • M&A to drive sales growth and innovation Focused on driving sales growth in core and adjacent markets Guidelines: - generally to exceed cost of capital by year 3 - target 12.5% + IRR • Dividend growth Dividend per share CAGR of 20% since 2010 Committed to increasing the dividend
Slide 14: Stryker Advantage
STRYKER ADVANTAGE POSITIONED WELL FOR THE FUTURE • Global MedTech leader • Focused on innovation • Accelerating global growth • Opportunities to drive operational leverage • Healthy cash flow and balance sheet 14
Slide 15: Stryker
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