Stryker Corporation · NYSE:SYK
Stryker — 34th Annual J.P. Morgan Healthcare Conference (January 2016)
18 slides from Stryker's conference presentation, Jan 13, 2016
Slide 1: Stryker
Stryker Kevin A. Lobo Chairman and Chief Executive Officer January 13, 2016
Slide 2: Forward looking statement
Forward looking statement This 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 materially from those express
Slide 3: Mission and Values
Mission Together with our customers, we are driven 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 Pursuing global market leadership in three segments 4
Slide 5: History of growth
History of growth 9.9B 10 Sales ($B) 9 8 7 6 5 4 3 2 1 0 79 15 5
Slide 6: Committed to growth at the high end of Medtech
Committed to growth at the high end of Medtech 7.0% Organic Revenue Growth* 6.1% 6.0% 5.8% 5.1% 5.0% 4.0 – 4.5% 4.0% 3.0% 2.8% 2.4% 2.0% 1.0% 0.0% 2013 2014 2015 Medtech Market** Stryker * Organic revenue growth removes the impact of changes in foreign currency exchange rates, divestitures and the f
Slide 7: Committed to delivering leveraged earnings
Committed to delivering leveraged earnings 14.0% 13.2%* 12.0% 9.8% 10.0% 8.5% 8.0% 7.9% * 5.8% 6.1% 6.0% 5.3% 5.1% 4.4% 4.0% 2.0% 0.0% 2013 2014 2015E Organic Sales Growth ** * Growth rates are the mid‐point of the estimated earnings range provided in the preliminary results dated January 12, 2016 A
Slide 8: 2015 preliminary results
2015 preliminary results FY2015 + 6.1% Organic sales growth $5.09 – 5.12 Adjusted diluted net earnings per share 2016 Outlook Opportunities • Continued strong sales momentum • Reinvesting a majority of the savings as a result of the suspended medical device tax The medical device tax had a 2015 impa
Slide 9: How we will deliver
How we will deliver • Business unit specialization • International growth • Acquisitions • Cost transformation 9
Slide 10: Product innovation
Product innovation • 3 Year CAGR of R&D investment ~10% • Healthy and diverse product pipeline • Spine, Sports Medicine, Trauma & Extremities launching many products • Endoscopy launch of 1588 AIM Platform • However, Instruments later in its product cycle • Leveraging common platforms • 3D printing
Slide 11: Mako
Mako • Strong Mako sales momentum • Record sales level for Q4: 31 systems • Hip growth accelerating • 2016 Goals • Total knee launch to select key opinion leaders • Enhance the training protocols prior to full commercial launch • 2017 Goals • Full total knee commercial launch • Clinical data from ea
Slide 12: Acute ischemic stroke
Acute ischemic stroke • Vast majority of strokes are ischemic • New clinical studies and AHA guidelines are driving device based treatment • Multi-year market development in progress • ~$250M market today and expected to be $1B+ • Stryker Trevo® device well positioned 12
Slide 13: International growth
International growth • Significant long-term emerging markets opportunity • Strong European momentum • Expanding global operating model driving focus and alignment 13
Slide 14: Continued strength through M&A
Continued strength through M&A Color key: Core Business • Targeting core and key adjacent markets Adjacency • Accelerate our top line, drive innovation • Enabled by our strong balance sheet Ascent Concentric Patient Safety Porex Berchtold Muka OtisMed Orthovita Trauson CoAlign Metal 2009 2010 2011 2
Slide 15: Cost transformation
Cost transformation • Product line rationalization • Indirect procurement • Common ERP platform • Expansion of shared services • Continued plant network optimization 15
Slide 16: Capital deployment
Capital deployment M&A to drive sales growth and innovation Focused on driving sales growth in core and adjacent markets Dividend growth Dividend CAGR of 18% since 2010 Committed to increasing the dividend at or above EPS Share repurchases 2015 full year share repurchase of $700M Remaining authoriza
Slide 17: Summary
Summary • Driving strong organic sales • Focused on innovation & acquisitions • Enhancing global presence through focus and alignment • Delivering leveraged earnings gains • Effectively deploying capital to enhance shareholder returns 17
Slide 18: Stryker
Stryker Kevin A. Lobo Chairman and Chief Executive Officer January 13, 2016
Stryker — 34th Annual J.P. Morgan Healthcare Conference (January 2016) on 6ix