avatar Stryker Corporation Manufacturing

Pages

  • Page 1

    Annual Review 2018


  • Page 2

    Salt Lake City Learning Center and Trevo Retriever Trevo manufacturing Utah and Benjamin Saving a life … and a way of living. Feb. 2018 — Trevo Retriever receives Seventh-grader Benjamin Bubis was going to soccer expanded indication for stroke treatment practice, as usual. When he got in the car with his up to 24 hours in U.S. grandfather, Boris Hutorin, little did he know he would become a lifesaving hero 40 minutes later. Boris, who is 71, suddenly stopped Dr. Puri. “We call that a large “I feel lucky, because if it weren’t talking during the drive. When vessel occlusion. He could not for Ben, if I was alone in the Benjamin realized something was move the entire right side of his car — I’m pretty sure I was going wrong with his grandfather, he body. He could not speak at all, 65 miles an hour — I would crash grabbed the steering wheel to and he was having a severe gaze somewhere,” says Boris. avoid crashing and guided the preference,” which indicates eye car to the side of the highway movement limitation. to call 911. Boris’s best chance for recovery “I started to scream and scream, with a large vessel occlusion was and he didn’t respond at all,” to have the clot removed using Benjamin recalls. “I was scared, a stent retriever, a minimally so I called my mom and she told invasive procedure that is now me to call 911. I pressed all the the standard of care for large buttons, and I’m not sure what vessel blockages. Dr. Puri guided stopped the car.” Stryker’s Trevo Retriever from Boris’s femoral artery in his leg up “I lost everything. I couldn’t hear to the brain, where the retriever anything, and I could only see ensnared the clot. Dr. Puri was from the left side,” says Boris. then able to remove the retriever An ambulance arrived to take with the clot back through him to UMass Memorial Medical a catheter. Center in Worcester, MA, where With Dr. Puri’s extensive he was seen by Dr. Ajit Puri, an experience using the stent experienced neurointervention retriever, the procedure, from specialist who uses minimally the time the catheter was inserted, invasive techniques to treat only took 21 minutes to restore stroke, brain aneurysms and blood flow to the brain. As a result, carotid stenosis. Boris was soon able to move the “Boris had a massive stroke where right side of his body and his the main artery of the brain, speech is now back to normal. called the middle cerebral artery, was blocked by a big clot,” says Dr. Ajit Puri, Neurointervention specialist, and Chris Lear, Stryker Territory Manager, Neurovascular


  • Page 3

    May 2018 — Trevo Retriever receives To experience our online, expanded indication for stroke interactive Annual Review and treatment up to 24 hours in Europe learn more about Boris’s story, please visit stryker.com/2018. Boris survives his Suzhou Training Center ischemic stroke thanks China to grandson Benjamin and Dr. Ajit Puri Massachusetts Ischemic stroke Trevo Retriever: around the globe training workshop Training and education Boris’s story In the news Brazil Every second counts Boris Hutorin and his grandson, Stroke is the fifth leading cause of death in the U.S. “Getting emergency help as soon as you Benjamin recognize the signs of stroke for you or a loved one is critical,” says Dr. Puri. In fact, patients can lose nearly two million brain neurons every minute until the clot is removed. Boris was able to avoid long-term brain damage, thanks to Benjamin’s actions and the quick response at the hospital, including the use of advanced treatments like the Trevo Retriever. Until recently, the use of a stent retriever to remove a clot was limited to the first six hours after an ischemic stroke, which meant patients seeking help outside of this time window faced severe disability and even death. In early 2018 Stryker’s Trevo Retriever became the first and only thrombectomy device to receive FDA clearance to significantly reduce disability in patients up to 24 hours from “Ben saved my life. symptom onset. To learn more about the impact of these changes Dr. Puri saved my visit Stryker.com/Trevo24. way of living.” Stryker | 2018 Annual Review 1


  • Page 4

    Dear shareholders, Our momentum continues as we delivered another successful year in 2018! Kevin A. Lobo Chairman and Chief Executive Officer We surpassed $13 billion in sales for the first time, (MedSurg) and Spencer Stiles (Neurotechnology, recorded our 39th consecutive year of sales growth, Instruments and Spine) — and, like Tim, both are posted strong adjusted earnings, completed numerous longtime Stryker employees who have demonstrated acquisitions and garnered accolades as a great place excellent performance. Viju Menon also joined the to work. company as Group President of Global Quality and Operations after a successful career in the technology industry. Howard Cox retired from our Board and was Culture and leadership named Director Emeritus, while two new directors Our mission — Together with our customers, we are were added: Sheri McCoy and Rajeev Suri. driven to make healthcare better — is a unifying force in the company, as are our values: Integrity, Accountability, People and Performance. Our people Financial performance are driven, team-oriented and humble. We continue Our organic sales growth of 7.9 percent (which excludes to be seen as a great place to work (see page 12) and the impact of acquisitions, foreign currency exchange are honored to have received many international and and the adoption of Accounting Standards update diversity and inclusion recognitions. ASC 606) was once again at the high end of the medical technology industry and marked our sixth consecutive Our leadership team (see page 16) has changed year of accelerating organic growth. Our sales growth following the retirement of Lonny Carpenter and was well balanced across geographies, with strong David Floyd, who both made significant contributions performances in the United States, South Pacific, Japan, to our success. Tim Scannell was appointed President Europe, Latin America and emerging markets. In fact, and Chief Operating Officer, and I look forward to our organic sales growth outside the United States was his leadership in driving performance across our higher than our United States growth. Reported sales businesses and regions. We named two new growth was 9.3 percent, including 1.9 percent growth commercial Group Presidents — Andy Pierce 2


  • Page 5

    from acquisitions and increased unit volume partially offset by a 1.4 percent impact from lower prices. Cost transformation Our multi-year effort to systematically reduce costs We also continued to generate healthy operational continues to progress. We were pleased to deliver 40 cash flow that contributed to a year-end cash and basis points of adjusted operating margin expansion marketable securities position of $3.7 billion, enabling in 2018 (excluding the impact of ASC 606), despite us to increase our dividend rate by 10.6 percent for significant dilution from acquisitions. And we continue the January 2019 payment. Our reported net earnings to make progress establishing shared services in Human grew 248.3 percent, aided by the favorability of Resources and Finance and implementing a single ERP onetime tax events, and our adjusted net earnings system to support our commercial businesses and grew by 12.7 percent. optimize our manufacturing and supply chain. Looking ahead, we expect Stryker to continue to grow Innovation sales at the high end of the medical technology industry, In 2018, our strong innovation pipeline helped while driving leveraged earnings. Our strategy, people power our growth, as we spent 6.3 percent of sales and culture will enable us to maintain our strong on research and development and launched many performance in the years ahead. exciting products, such as the Neuroform Atlas I would like to thank our management teams, our Board Stent System in Neurovascular and the Trident II of Directors, and our 36,000 employees worldwide who Acetabular System in Joint Replacement. live our mission and values every day. We continued to add innovations to our product and service portfolios through acquisitions (see pages 4–5), including the high-growth spinal implant company K2M. Our Instruments business added Entellus, which expands our Ear, Nose and Throat (ENT) offering, along with Invuity, which offers lighted retractors and advanced energy products. We also acquired Kevin A. Lobo HyperBranch, a dural sealant product that strengthens Chairman and Chief Executive Officer our Craniomaxillofacial (CMF) portfolio, and Hygia, to deepen our Sustainability Solutions business. 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 Stryker | 2018 Annual Review 3


  • Page 6

    Innovation New acquisitions strengthen our future Our disciplined approach to business development drives our growth and future innovation. Mergers and acquisitions have In 2018, we completed a series of long been a priority for our capital acquisitions that will strengthen allocation and an accelerator of long- our core business and add term performance. Our ability not complementary products where only to acquire the right businesses we already have a market presence. but also to integrate them quickly to drive growth is a strength. Hygia Health Services With a focus on reprocessing patient- care single-use devices like ECG leads and infusor bags, Hygia will broaden the reprocessing capabilities of our Sustainability Solutions business. A premier provider of sustainability solutions in the global healthcare market, Hygia has helped several thousand single-use device reprocessing customers collectively save millions of dollars in supply costs and divert millions VEXIM of pounds of waste from landfills. We acquired this French medical device company that specializes in the minimally invasive treatment of vertebral compression fractures. VEXIM’s flagship product is the SpineJack system, a mechanical expandable vertebral compression fracture implant for fracture reduction and stabilization. VEXIM’s portfolio is highly complementary to the Interventional Spine (IVS) business of our Instruments division. 4


  • Page 7

    K2M K2M is a global leader of complex spine and minimally invasive products designed to achieve three-dimensional Total Body Balance. Spine surgeons use these technologies and techniques to treat some of the most complicated spinal pathologies. K2M’s innovative product portfolio and robust pipeline strengthen our leadership in the spine and neurotechnology markets, while expanding our global footprint. Entellus This high-growth global medical technology company focuses on minimally invasive devices that enable physicians to conveniently and comfortably perform a broad range of Ear, Nose and Throat (ENT) procedures, including the treatment of nasal airway obstructions. As a leader in the ENT segment, Entellus brings a comprehensive portfolio of products that deliver superior patient and physician experiences. HyperBranch Supporting our growth strategy within our Neurotechnology business, HyperBranch develops and markets products for dural repair. The addition of its Adherus AutoSpray dural sealant to our cranial closure portfolio strengthens our position of Invuity excellence in the dural The leader in advanced photonics repair space. and single-use, lighted instruments delivers enhanced visualization for a wide variety of clinical applications, serving a number of segments, including orthopaedic and spine surgery, general surgery and women’s health procedures. These innovative products, which are market leaders in illumination to help make surgery more precise, efficient and safe, are highly complementary to our Instruments business. Stryker | 2018 Annual Review 5


  • Page 8

    Growth and globalization Making healthcare better, together with Mako Mako Technology has evolved demonstrated enhanced patient- during its more than 13-year history. reported outcomes, like less pain The year 2018 marked our five-year than those undergoing manual acquisition anniversary of MAKO surgery during the 90-day post- Surgical Corp., and through the end operative period for Mako Partial of 2018 more than 200,000 Mako Knee, and significantly higher procedures have been performed modified Harris Hip scores in 26 countries across the globe.1 (92.1+/-10.5 vs. 86.1+/-16.2, p=0.002) for Mako Total Hip compared to Mako Robotic-Arm Assisted manual surgery.4,5 Surgery enables surgeons to have a more predictable surgical Mako Total Knee was evaluated experience through three unique in two distinct, prospective, steps: CT based enhanced planning, consecutive series, single-surgeon dynamic joint balancing and studies comparing patients haptic guidance. undergoing conventional jig-based total-knee replacement versus In partial knee and total hip Mako Total Knee surgery applications, Mako has been (40 patients6 and 30 patients7 shown to facilitate more accurate in each cohort). positioning to plan2,3 and has The studies concluded that Mako Total Knee with Triathlon was associated with: Less Less Less Less Less bone and need for time to need for post- soft tissue opiate hospital in-patient operative damage7 analgesics6 discharge6 therapy pain6 (p<0.05) (p<0.001) (26% reduction sessions6 (p<0.001) in length of stay) (p<0.001) 1. Stryker’s sales/case data. 2. Bell SW; Anthony I; Jones B; MacLean A; Rowe P; Blyth M. Improved accuracy of component positioning with robotic-assisted unicompartmental knee arthroplasty: data from a prospective, randomized controlled study. J Bone and Joint Surg. 2016;98: 627–35. 3. Elson L, Dounchis J, Illgen R, Marchand R, et al. Precision of acetabular cup placement in robotic integrated total hip arthroplasty. Hip Int 2015; 25(6): 531–536. 4. Blyth MJ, Anthony I, Rowe P, Banger MS, MacLean A, Jones B. Robotic-arm assisted versus conventional unicompartmental knee arthroplasty: Exploratory secondary analysis of a randomized controlled trial. Bone and Joint Research. 2017 Nov 16 (11): 631. 5. Bukowski BR, Chughtai M, Anderson P, et al. Improved functional outcomes with robotic compared with manual total hip arthroplasty. Surg Technol Int. 2016 Oct. 6. Haddad FS, et al. Robotic-arm assisted total knee arthroplasty is associated with improved early functional recovery and reduced time to hospital discharge compared with conventional jig-based total knee arthroplasty. The Bone & Joint Journal, July 2018. 7. Haddad FS, et al. Iatrogenic Bone and Soft Tissue Trauma in Robotic-Arm Assisted Total Knee Arthroplasty Compared With Conventional Jig-Based Total Knee Arthroplasty: A Prospective Cohort Study and Validation of a New Classification System. J Arthroplasty. 2018 Aug;33(8):2496–2501. Epub 2018 Mar 27. Professor Fares S. Haddad is a consultant of Stryker. However, Dr. Haddad and the authors of publications #6 and #7 did not receive financial or in-kind compensation for the research or publications. 6


  • Page 9

    New education centers — building knowledge and experience With a strong commitment to education and training for healthcare providers — to make healthcare better for patients — we have recently opened three state-of-the-art education and training centers. Amsterdam Asia Pacific Mako Education Skills Centre Training Center Center Amsterdam, The Netherlands Hong Kong, China Ft. Lauderdale, Florida, U.S. The Amsterdam Skills Centre (ASC), Our new Asia Pacific Training The Mako Education Center is which opened its doors in February Center in Hong Kong will provide a premier training facility for 2019, offers medical specialists surgeons in the region with world- surgeons, with a primary focus and other healthcare professionals class training and simulated on Mako Robotic-Arm Assisted from all over the world an operations using the Mako Surgery training and education. innovative learning environment. Robotic-Arm Assisted system. The 45,000-square-foot training A collaboration of Amsterdam The 6,000-square-foot space will center features a custom wet University’s Academic Medical also be a top venue for seminars, lab that accommodates 12 Mako Center and Stryker, which invested workshops and hands-on training stations, reflecting the importance in the building and equipment, in surgical education. Through the of cutting-edge technology in the ASC features 12 high-tech center, surgeons can strengthen medical and surgical applications. operating rooms, operating robots, their surgical competencies and Following the ribbon-cutting, our virtual reality simulators and share knowledge of the latest Chairman and CEO, Kevin Lobo, educational facilities. techniques in robotic surgery. hosted a global town hall for More than 100 guests were on Stryker’s more than 200 team hand to celebrate the opening in members in the area. October 2018. Stryker | 2018 Annual Review 7


  • Page 10

    People and culture Driven to innovate Customers and patients are at the heart of everything we do. We nurture innovation to address customer challenges. That approach began with our Our deep understanding of our time, reflecting the importance of founder, Dr. Homer Stryker, an customers helps us design and innovation and collaboration to help orthopaedic surgeon in Kalamazoo, manufacture products and services solve customer problems and develop Michigan, who invented products in that make a difference for them. products and services that advance the local community hospital where our mission. he worked to better serve the needs We collaborate across the company of his patients. and leverage our talented innovators Nominated by their R&D leader and to develop meaningful technology division president, Fellows have This spirit of innovation continues to and solutions. And we recognize developed breakthrough technology drive us today. We collaborate with our best. and market-leading products that hospitals and healthcare providers have influenced the direction of to make sure we understand their Our R&D Fellows Award recognizes our business. practice environment, treatment significant accomplishments in protocols and unmet needs. research and development over 2018 R&D Fellow inductees John Scanlan Robert Cohen Senior Director, Business and Process VP, R&D, Chief Technology Officer, Development, Advanced Operations Joint Replacement Early in his career, John played a key role in Robert’s many contributions to the advancement developing and introducing many new knee, hip of hip and knee products over the years are evident and bone cement products before leading teams in the 28 patents for which he is responsible, in the development of our additive manufacturing including the tibial component delta fit keel design, technology. His work included technical and process which is integral to tibial component stability and design as well as the creation of a software and initial fixation. Robert was also instrumental in equipment supplier base for producing high-quality, transitioning Mako robotics from being a niche innovative additive products. John’s leadership player in partial knee replacement to establishing resulted in the launch of our first additive implant, a broad-based arthroplasty platform, while guiding the Triathlon Tritanium Tibial Baseplate, in the development process and regulatory strategy June 2013, and many others that followed. for Mako Total Knee. 8


  • Page 11

    Diversity and inclusion We encourage, value and leverage the differences in people and perspectives to make healthcare better. Inspiring women to students, including the Quality 58% Graduate Rotational Program, the in STEM RISE Engineering Program, the Global Engineering Development We understand that the future of Program and various internships. medical device innovation relies of the students on exceptional talent in Science, Technology, Engineering and Math We also had interactive, hands-on demonstrations of our products earning a (STEM). That’s why our Stryker’s and technologies that improve and degree in the Women’s Network (SWN) partnered with I WISH (Inspiring Women in save lives, including defibrillators, endoscopes, cranial drills, United States STEM), an initiative to inspire and biomaterials, stents, catheters, are women motivate young female students to ultrasonics and robots, among others. pursue careers in STEM. I WISH encourages female role models to Employee resource 39% share their experiences, from school subject choices and college and groups (ERGs) career choices to day-to-day work as engineers. SWN enhances opportunities for members through networking, of STEM professional development, leadership The statistics tell the story: 58 percent of students earning a messages, community outreach and graduates degree in the United States are educational projects that drive the are women women, but only 39 percent of attraction, development, engagement students earning STEM degrees and retention of talented women. are women. The network is open to all employees, I WISH hosted a conference and both men and women, and includes thousands of members across “Gender balance interactive exhibitions in Cork and Dublin, Ireland, where a Stryker the globe. increases our ability Other Stryker ERGs include team met with 6,000 women to show them how we are driven to make Stryker’s Allies for Equality (SAFE), to attract the best healthcare better. Women in Stryker’s Engineering talent and make (WISE), Stryker’s African American Our team members also spoke to the teachers in attendance about Network (SAAN), SOMOS (Hispanic/ healthcare better Latino), Stryker’s Emerging our graduate programs and the Professionals (SEP) and Stryker’s for customers and opportunities that are available Veterans Association (SVA). patients.” – Katherine Owen Vice President, Strategy and Investor Relations We understand that attracting and empowering a diverse team is critical for our business and we take steps to ensure that we have a great workplace for everyone. Stryker | 2018 Annual Review 9


  • Page 12

    Corporate responsibility Our commitment to people and planet As an industry leader, we believe corporate responsibility is a strategic priority, and we invest time and resources in the areas that are most important to our employees, customers and the communities where we live and work. We accomplish this by focusing on five distinct areas: Investing Product lifecycle Resource in people innovation efficiency Promoting health, safety, Carefully considering our Reducing water, waste talent and inclusion use of materials across a and emissions product’s lifecycle Responsible Ethics and supply chains accountability Managing and sourcing Ensuring transparency, with high standards honesty and fairness are always paramount 10


  • Page 13

    Below are a few highlights of our commitment to people and planet Key initiatives in 2018 and our 2018 achievements, through our key focus areas. Operation Smile Improving caregiver safety through the 491 Neptune 3 Waste Management System life-changing A closed mobile technology that surgeries funded manages hazardous fluids and by employee the smoke evacuation of harmful particles, eliminating the need to and company dump or solidify waste from a donations standard canister. Visit smile.stryker.com to learn more $200M Sustainability Solutions spent with minority-, women- and 13.2M veteran-owned businesses pounds of waste diverted from landfills $575M spent with small $339.5M businesses supporting manufacturing saved in supply costs or delivery of our products “We believe the health of the world is as important as the people who live in it. We are committed to making responsible decisions that help people and preserve the planet for future generations.” – Kevin Lobo, Chairman and Chief Executive Officer Stryker | 2018 Annual Review 11


  • Page 14

    Performance Global recognition FORTUNE Change Best Workplaces FORTUNE the World International World’s Most Admired Companies #25 in 2018 #2 for Australia, 2018 out of 57 companies — recipient for the fifth consecutive year #3 in 2019 recipient for the first time Brazil, 2018 Medical Products & Equipment recipient for the fifth consecutive year recipient for the 17th consecutive year Canada, 2018 recipient for the ninth consecutive year LinkedIn Top France, 2018 Companies recipient for the first time FORTUNE 500 Where the World Wants to Work Now Netherlands, 2018 Largest U.S.-Based recipient for the first time Companies Mexico, 2018 #30 in 2018 recipient for the fifth time recipient for the second time #240 in 2018 Spain, 2018 joined the list in 2003 — recipient for the third time recipient for the 16th consecutive year Women’s Choice Awards FORTUNE FORTUNE Best 2018 awards Workplaces (U.S.) World’s named to three lists including Best Workplaces 100 Best Workplaces for Women, For Women, 2018 100 Best Companies for Millennial recipient for the second time #12 in 2018 Women and 50 Best Companies for out of 25 companies — Multicultural Women For Diversity, 2018 recipient for the second time #40 out of 100 companies — recipient for the second consecutive year Top Employer For Giving Back, 2018 FORTUNE 100 Deutschland #22 out of 50 companies — Best Companies to recipient for the third (Germany) consecutive year Work For (U.S.) For Manufacturing and 2019 award #11 in 2018 Production, 2018 recipient for the third recipient for the ninth #1 out of 20 companies — consecutive year consecutive year recipient for the third time 12


  • Page 15

    Financial highlights Net earnings History of net sales growth 13.6 $ per diluted share $ in billions 10.00 9.34 8.00 12.0 6.00 4.00 2.00 2013 2018 10.0 Adjusted net earnings 1 $ per diluted share 8.0 8.00 7.31 6.00 4.00 6.0 2.00 2013 2018 4.0 Dividends paid $ per share of common stock 2.00 1.88 2.0 1.50 1.00 0.50 2013 2018 1998 2018 Financial overview ($ in millions, except per share amounts) 2018 2017 % Change Net sales $ 13,601 $12,444 9.3 Earnings before income taxes 2,356 2,063 14.2 Income taxes (1,197) 1,043 (214.8) Net earnings 3,553 1,020 248.3 Adjusted net earnings1 2,779 2,465 12.7 Net earnings per diluted share of common stock Reported $ 9.34 $ 2.68 248.5 Adjusted1 7.31 6.49 12.6 Dividends paid per share of common stock $ 1.88 $ 1.70 10.6 Cash, cash equivalents and marketable securities 3,699 2,793 32.4 1. Adjusted net earnings and adjusted net earnings per diluted share are non-GAAP financial measures. Refer to page 17 for a reconciliation to the most directly comparable GAAP financial measures, net earnings and net earnings per diluted share. Stryker | 2018 Annual Review 13


  • Page 16

    Leadership Leading in medtech ne d Spi y an l og hno ec 6% t ro 16% eu M N ed 13% ica lan dS urgic 3% $13.6B al (MedSurg) 13% 10% in global sales 13% 12% O rth op ed a ic 12% 2% s MedSurg Orthopaedics Neurotechnology and Spine 44% 16% Medical 37% 12% Knees 19% 13% Neurotechnology 13% Instruments 12% Trauma & Extremities 6% Spine 13% Endoscopy 10% Hips 2% Sustainability Solutions 3% Other 14


  • Page 17

    Board of Directors Pictured below from left to right Chairman Emeritus Louise L. Francesconi † ‡ John W. Brown Former Chairman, President Allan C. Golston ** and Chief Executive Officer Kevin A. Lobo Mary K. Brainerd ** Director Emeritus Andrew K. Silvernail ** Howard E. Cox, Jr. Ronda E. Stryker ‡ Rajeev Suri ** Roch Doliveux, D.V.M. † ‡ Srikant M. Datar, Ph.D. † ‡ Sherilyn S. McCoy † ‡ Chairman of the Board Lead Independent Director ** Audit Committee † Compensation Committee ‡ Governance and Nominating Committee Stryker | 2018 Annual Review 15


  • Page 18

    Leadership Leadership team Pictured below from left to right Division Presidents Kevin A. Lobo J. Andrew Pierce Businesses Regions Chairman and Group President, MedSurg Xavier M. C. Berling Maurice Ben-Mayor Chief Executive Officer Trauma & Extremities South Pacific Bijoy S. N. Sagar Glenn S. Boehnlein Vice President, Chief Digital Dylan B. Crotty Laurence F. I. Hipkin Vice President, Technology Officer Instruments Eastern Europe, Chief Financial Officer Middle East, Africa M. Kathryn Fink Brent W. Ladd Yin C. Becker Vice President, Chief Human Endoscopy Scott A. MacNair Vice President, Resources Officer Canada Communications, Eric D. Major Public Affairs and Spencer S. Stiles Spine Graham A. McLean Corporate Marketing Group President, Asia Pacific Neurotechnology, Mark H. Paul Michael D. Hutchinson Instruments and Spine Neurovascular Hiroyuki Saeki Vice President, Japan Chief Legal Officer Katherine A. Owen Bradford L. Saar Vice President, Strategy and Medical Fabrizio Signorin Viju S. Menon Investor Relations Latin America Group President, Global Stuart F. Simpson Quality and Operations Timothy J. Scannell Joint Replacement Stuart A. J. Silk President and Europe, Middle East, Africa, Chief Operating Officer Brian J. White Latin America, Canada Sustainability Solutions 16


  • Page 19

    Other Officers With appreciation Dean H. Bergy We want to express our gratitude and VP, Corporate Secretary appreciation to Lonny Carpenter, Group President and Advisor to the CEO, who William E. Berry, Jr. is retiring from Stryker on March 31, Lonny Carpenter VP, Corporate Controller 2019, and David Floyd, Group President and Advisor to the CEO, who will retire Jeanne M. Blondia on June 30, 2019. VP, Finance and Treasurer Lonny has had an amazing career and Irene B. Corbe left a wonderful legacy in his 30 years VP, Internal Audit with the company, playing major roles in helping us grow into the Fortune William J. Cymbaluk 250 Company that we are today. David VP, Corporate Regulatory has made significant contributions to Affairs and Quality Assurance the growth and success of the company since joining in 2012, including David Floyd David G. Furgason his role in spearheading numerous VP, Tax acquisitions, such as Mako Surgical and Small Bone Innovations. Bronwen R. Taylor Our best wishes to them both. VP, Compliance and Risk Management Cover and portrait photography by Addison and John Madere Reconciliation of the Most Directly Comparable GAAP Financial Measure to Non-GAAP Financial Measure Net earnings ($ millions) Net earnings per diluted share 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Reported $1,006 $ 515 $1,439 $1,647 $1,020 $3,553 $2.63 $1.34 $3.78 $4.35 $2.68 $9.34 Acquisition and integration-related charges Inventory stepped-up to fair value 21 15 4 23 20 9 0.06 0.04 0.01 0.06 0.05 0.02 Other acquisition and integration-related 51 50 20 77 31 90 0.13 0.13 0.05 0.20 0.09 0.24 Amortization of purchased intangible assets 98 133 147 221 250 338 0.26 0.35 0.39 0.59 0.67 0.89 Design by Addison www.addison.com Printing by Phoenix Lithographing Corporation Restructuring-related and other charges 46 78 97 98 155 179 0.12 0.20 0.26 0.26 0.41 0.47 Medical device regulations – – – – – 10 – – – – – 0.03 Recall-related matters 460 628 210 127 131 18 1.20 1.65 0.55 0.34 0.34 0.05 Regulatory and legal matters 63 – (46) (7) 25 141 0.17 – (0.12) (0.02) 0.06 0.37 Donations 15 – – – – – 0.04 – – – – – Tax matters (46) 391 78 8 833 (1,559) (0.12) 1.02 0.20 0.02 2.19 (4.10) Adjusted $1,714 $1,810 $1,949 $2,194 $2,465 $2,779 $4.49 $4.73 $5.12 $5.80 $6.49 $7.31 Effective Tax Rate — Reported 17.0% 55.6% 17.1% 14.3% 50.6% (50.8%) Effective Tax Rate — Adjusted 22.7% 22.3% 17.3% 17.3% 15.6% 16.7% Weighted average diluted shares outstanding 382.1 382.8 380.9 378.5 380.1 380.3 Refer to our 2018 Annual Report on Form 10-K, available at stryker.com, for additional information regarding our non-GAAP financial measures. Our Annual Review contains many of the valuable trademarks owned and/or used by Stryker and our subsidiaries and affiliates in the U.S. and internationally to distinguish products and services of outstanding quality. All other trademarks featured herein are the property of their respective owners. 17


  • Page 20

    Orthopaedics Hips Knees Robotic-Arm Trauma Extremities Sports Medicine Assisted Technology Medical and Surgical equipment Power Tools Advanced Minimally- Infrastructure Emergency and Reprocessing and and Surgical Guidance Invasive and and Integration Acute Care Remanufacturing Equipment Technologies Open Surgical Visualization Solutions Neurotechnology and Spine Craniomaxillo- Interventional Neurosurgical, Neurovascular Spinal Implants facial Spine Spine and ENT and Biologics © 2019 Stryker Stryker | 2825 Airview Boulevard Kalamazoo, Michigan 49002 USA | 269 385 2600 | stryker.com SYK CORP 2018-08-16


  • Page 21

  • View More

Get the full picture and Receive alerts on lawsuits, news articles, publications and more!