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2013annualreview FINANCIALHIGHLIGHTSFINANCIALOVERVIEWINMILLIONSEXCEPTPERSHAREAMOUNTS20132012CHANGENETSALES902186574.2EARNINGSBEFOREINCOMETAXES1212170528.9INCOMETAXES20640749.4NETEARNINGS1006129822.5ADJUSTEDNETEARNINGS23161615603.6DILUTEDNETEARNINGSPERSHAREOFCOMMONSTOCKREPORTED2.633.3922.4ADJUSTED124.234.073.9DIVIDENDSPAIDPERSHAREOFCOMMONSTOCK1.060.8524.7CASHCASHEQUIVALENTSANDCURRENTMARKETABLESECURITIES398042857.110.08.06.04.02.00.09.020131993HISTORYOFREVENUEGROWTHINBILLIONS5.04.03.02.01.00.020082013ADJUSTEDDILUTEDNETEARNINGS12PERSHARE1.51.00.5020082013DIVIDENDSPAIDPERSHAREOFCOMMONSTOCK2.52.01.51.00.5020082013CASHFLOWPROVIDEDBYOPERATINGACTIVITIESINBILLIONS1.91.064.231Anon-GAAPfinancialmeasure.ThemostcomparableGAAPfinancialmeasureisdilutednetearningspersharewhichwere2.782.773.193.453.39and2.63in20082009201020112012and2013respectively.2Forareconciliationbetweenthesenon-GAAPfinancialmeasuresandtheirmostcomparableGAAPfinancialmeasurerefertoourAnnualReportsonForm10-Kavailableonourwebsiteatwww.stryker.comorattheSECswebsiteatwww.sec.gov.3Anon-GAAPfinancialmeasure.ThemostcomparableGAAPfinancialmeasureisnetearnings. expectthistrendtocontinuegiventhesignifcantopportunityinthesemarkets.WecompletedtwostrategicacquisitionsrausonHoldingsCompanyLimitedandMAKOSurgicalCorp.whichprovideexcitinggrowthprospectsoryearstocome.rausonourfrstacquisitioninChinawhichwascompletedinMarchenablesustocompeteinthelower-pricedsegmentothegrowingorthopaedicmarketinChinaandothermarkets.Teintegrationhasproceededsmoothlyandwearedelightedtobeontrackwithourexpectations.InlateDecember2013weclosedtheacquisitionoMAKOwhichprovidesuswitharoboticarmassistedplatormorreconstructivesurgery.Itholdsthepromisetodeliverconsistentreproducibleproceduresthatwillenhancethesurgeonandpatientexperience.Weviewthisasauniqueopportunitytotransormorthopaedicsurgeryovertimeincludingnewimplantdesignsenabledbyrobotics.AercompletingmyfrstullyearasCEOIamexcitedaboutourCompanysachievementsandtheprogresswehavemadeinstrengtheningourleadershipinthemedicaltechnologyindustry.AsyoureadthroughthisreviewIbelieveyouwillagreethatStrykeriswellpositionedortheuture.In2013wemetourprimaryobjectivesachievedstrongtop-linegrowthdeliveredsolidoperationalearningsexpandedgloballyandinvestedthroughRDandacquisitionstostrengthenourproductandserviceoerings.FOCUSONGROWTHIn2013ourorganicgrowthexcludingacquisitionsandoreignexchangeo5wasatthehighendomedicaltechnologyincludingdouble-digitgrowthinmanybusinessesasuccessulturnaroundinEuropeandrapidgrowthinemergingmarkets.raumaExtremitiesNeurotechnologyEndoscopyandourHipbusinessallhadstrongabove-marketgrowthintheyear.InEuropewhichremainsachallengingmarketourturnaroundoccurredaheadoscheduleaswereturnedtomarketgrowthbythemiddleotheyear.WewillalsobeestablishingaEuropeanheadquartersinAmsterdamin2014tostrengthenouroundationoruturegrowth.Wehadverystrongdouble-digitgainsinEmergingMarketsledbyChinawithexcellentresultsinboththepremiumandvaluesegmentsothemarket.Emergingmarketsgrewrom6ototalCompanysalesin2012toover7osalesin2013andweLETTERFROMTHEPRESIDENTANDCEOKEVINA.LOBO9.0BNETSALES5ORGANICSALESGROWTHDEARSHAREHOLDERS1 ORGANIZATIONALSTRENGTHOnekeyreasonoroursuccessisthedecentralizedmannerinwhichweoperateourbusinesses.DivisionpresidentshavedirectresponsibilityorSalesMarketingRDandBusinessDevelopment.Teyarelaser-ocusedontheircustomersneedsandtheirteamsentrepreneurialspiritdrivessustainedhighgrowth.SpecializedsalesorceswithdriveandpassioncontinuetobeacorestrengthatStryker.Wealsohaveahigh-perormingGlobalQualityandOperationsorganizationthatisontrackwithourprogramtosave500millionincumulativecoststhroughnetworkandsupplychainimprovements.TisincludesanewlycreateddistributioncenterinIndianapolisIndianaandecienciesthroughourVenloNetherlandsdistributioncenter.Ourgoalistocontinuetodeliveryear-over-yearavorablereductionsincostogoodssoldworkingcapitalimprovementso250millionanda30-dayimprovementindaysoinventoryonhand.In2013despitepricingpressureouradjustedgrossmarginexpandedby30basispointsexcludingtheimpactotheMedicalDeviceExciseax.DuringtheyearweullystaedtheStrykerExecutiveLeadershipeamatalentedgroupoindividualswithdeephealthcareexperienceandadiversityobackgroundsandstyles.WeAlsoinDecember2013weannouncedourintenttoacquirePatientSaetyechnologiesInc.whoseproprietarysowarehelpspreventretainedoreignobjectsinpatientswhileintheoperatingroomtherebyimprovingpatientsaetyandreducinghealthcarecosts.TisacquisitionwilloldintotheInstrumentsdivisionandwillcomplementexistingtechnologiesandsolutionsthatimprovecaregiverandpatientsaety.Additionallywecontinuedtostrengthenourqualityprogramwithsuccessulresultsromregulatoryinspectionsandwereceived510kFDAclearancetomarketamodifedNeptune2WasteManagementSystemwhichisanimportantproducttoourcustomersasitreducesharmulexposuretouidsandsmokeintheoperatingroom.STRONGFINANCIALRESULTSWedeliveredconsistentresultsthroughout2013withnetsalesreaching9billiona4.2increaseandouradjusteddilutednetEPSwas4.23persharea3.9increase.BothnetsalesandadjusteddilutednetEPSwereimpactedbyoreignexchangeearningswerealsonegativelyaectedbytheU.S.MedicalDeviceExciseax.AdjustingortheseitemsadjusteddilutednetEPSimprovedbydoubledigitsshowingstrongoperationalleverage.Wealsocontinuedtogeneratehealthyoperationalcashowup14vs.2012whichcontributedtocashequivalentsandmarketablesecuritiesexceedingdebtby1.2billionattheendotheyear.Tisbalancesheetstrengthenabledustocompleteacquisitionsannounceanincreaseinourdividendpershareo15ortheJanuary2014paymentandrepurchase317millionosharesduringtheyear.LETTERFROMTHEPRESIDENTANDCEOTOGETHERWITHOURCUSTOMERSWEAREDRIVENTOMAKEHEALTHCAREBETTER15INCREASEINOURDIVIDENDSTRYKER2013ANNUALREVIEW2 establishedanewmissionstatementortheCompanyTogetherwithourcustomerswearedriventomakehealthcarebetter.TismissionisbeingrolledoutacrosstheCompanyandrecognizesourcommitmenttoclosecustomerconnectionsouruniqueperormance-drivencultureandoursenseopurposeinimprovinghealthcare.WealsochosetobeexplicitaboutourvaluesIntegrityAccountabilityPeopleandPerformance.TesevaluesarehallmarksoStrykerscultureandwillremaininplaceregardlessohowweevolvetomeetthechanginglandscape.BRIGHTFUTURETeseareexcitingtimesorStrykerandourindustryandweplantodeliveranothersolidfnancialperormancein2014.Weexpectorganicsalesgrowthtobeintherangeo4.5to6.0onceagainatthehighendomedicaltechnology.Ioreigncurrencyexchangeratesholdnearcurrentlevelsweexpectalessthan1negativeimpactonnetsales.Regardingearningswewillexcludeamortizationointangibleassetsromouradjusteddilutednetearningspersharewhichweexpecttobeintherangeo4.75to4.90usingthisnewmeasure.Tisrepresentsa6to9improvementover2013whichissolidoperationalleverageconsideringthatoreignexchangewillcontinuetoweighonearningsespeciallyinthefrsthalotheyear.AswecloseoutaproductiveyearandlookconfdentlytotheutureIwanttotakeamomenttothankourNon-ExecutiveChairmanBillParetandourBoardoDirectorsortheirsupportandguidanceregardingourgrowthagenda.IalsowanttoexpressmyappreciationtoDirectorHowardLancewhowillberetiringromtheBoardaerouryearsoserviceandociallywelcomeournewestDirectorAndySilvernailCEOoIDEXCorporation.Ialsowanttoexpressmygratitudetoourmorethan25000employeesaroundtheworldwhoinspiremeeverydaywiththeirhardworkcreativityandinitiative.WecontinuetoreceivemanyaccoladesoremployeeengagementincludingFortunemagazinesdesignationortheourthconsecutiveyearthatStrykerisoneothe100BestCompaniestoWorkForintheU.S.AsItraveltheworldandseeourprogressitiscleartomethatwearewellpositionedortheuture.SincerelyKEVINA.LOBOPresidentChieExecutiveOcerNAMEDONEOFTHE100BESTCOMPANIESTOWORKFORBYFORTUNEMAGAZINE3 INSTRUMENTS14MEDICAL8SPINE8ENDOSCOPY13KNEES15HIPS14TRAUMAEXTREMITIES12OTHER3SUSTAINABILITYSOLUTIONS2NEUROSURGICALSPINEANDENT3NEUROVASCULAR5CRANIOMAXILLOFACIAL3BREADTHANDDEPTHNEUROTECHNOLOGYSPINE19RECONSTRUCTIVE44MEDSURG37RECONSTRUCTIVETissegmentincludeskneeshipstraumaextremitiesincludingfootankleandotherproductssuchassportsmedicinejointpreservationandorthobiologicsbiosurgery.MEDSURGTissegmentincludesinstrumentsbonecuttingsurgicalaccessoriesandcomputer-assistedsurgeryendoscopyminimallyinvasivesurgicalsolutionsandintegrationconnectivitymedicalpatientcarepatienthandlingandemergencymedicalservicesequipmentandsustainabilitysolutionsreprocessingandremanufacturing.NEUROTECHNOLOGYSPINETissegmentincludesspinalimplantsandinterventionalspineproductsneurovascularNSEneurosurgicalspineandearnoseandthroatandcraniomaxillofacialproducts.STRYKER2013ANNUALREVIEW4 MAKINGHEALTHCAREBETTERStrykerisoneotheworldsleadingmedicaltechnologycompaniesandtogetherwithourcustomerswearedriventomakehealthcarebetter.TeCompanyofersadiversearrayoinnovativemedicaltechnologiesincludingreconstructivemedicalandsurgicalandneurotechnologyandspineproductstohelppeopleleadmoreactiveandmoresatisyinglives.Strykerproductsandservicesareavailableinover100countriesaroundtheworld.Pleasecontactusormoreinormationatwww.stryker.com. STRYKER2013ANNUALREVIEW6 DEVELOPINGBREAKTHROUGHTECHNOLOGIESStrykerpushesthefrontiersofmedicalresearchwithuncompromisingclinicalintegrityandinnovativetechnologiestoimprovethelivesofpatientsaroundtheworld.Tekeytooursuccessisbasedonourcloserelationshipswithourcustomerswhichhelpustounderstandhowwecanbestassistthemandtheirpatients.Asatrustedpartnerweworkdirectlywiththousandsofhealthcareproviderstoprovidethetoolstheyneedandtobuildbestpracticesintoeverythingwedo.PATENTSOWNEDGLOBALLYIN201352037 DEVELOPINGBREAKTHROUGHTECHNOLOGIESDEVELOPINGBREAKTHROUGHTECHNOLOGIES1AmericanHeartAssociation.HeartDiseaseandStrokeStatistics2012Update.DallasexasAmericanHeartAssociation2012.2012AmericanHeartAssociation.2Smithetal.SigniicanceoLargeVesselIntracranialOcclusionCausingAcuteIschemicStrokeandIA.Stroke20094038343840.ADVANCINGROBOTICARMASSISTEDSURGERYInDecember2013StrykercompletedtheacquisitionoMAKOSurgicalCorp.apioneerintheadvancementoroboticarmassistedsurgeryinorthopaedics.MAKOisknownoritsagshipMAKOplastyPartialKneeResuracingprocedureortreatingosteoarthritisthathasnotprogressedthroughouttheentirekneeandmorerecentlyorMAKOplastyotalHipReplacementwhichhasdemonstratedbeneftsinpatientoutcomesinmorethan30000casesduringthepastfveyears.WithMAKOstechnologyplatormandourinnovationsinjointreconstructionwelookaheadtosimpliyingjointreconstructionproceduresandincreasingtheconsistencyreproducibilityandprecisionojointsurgeriesresultinginanimprovedpatientexperience.Every40secondssomeonesuersastrokealeadingcauseoseriouslong-termdisabilityintheU.S.andtheourthleadingcauseodeath.87ostrokesareischemic1causedbyablockageobloodowtothebrainandapproximately46othesearelarge-vesselocclusions2withpooroutcomesandhighmortality.TisiswhyStrykerintroducedtherevoXPProVueRetrieveraourth-generationrevoproductthatisdesignedtocaptureandremovetheclotsandrestorebloodowtothebrain.TerevoXPProVueRetrieverisjustoneexampleoStrykerscommitmenttoprovidecompletestrokecareorpatients.RESTORINGBLOODFLOWSTRYKER2013ANNUALREVIEW8 Strykerisdedicatedtoprovidinginnovativeproductsandoutstandingservicetoootandanklesurgeonsaroundtheworld.OurcomprehensiveportolioincludesplatingexternalfxationnailingscrewsandMemometalnitinolproducts.Teseproductsreectourcommitmenttoimprovepatientslivesaswecontinuetopartnerwithsurgeonstodriveinnovationeducationandresearch.BecauseothiscommitmentoursalesteaminFootAnkleexceeded100millioninsalesin2013makingStrykertheastestgrowingbusinessintheU.S.ootandanklemarket.HELPINGPATIENTSGETONTHEIRFEETINWORLDWIDESALESintheootandanklemarket.In2013StrykerlaunchedtheUniversalSMARLockHybridMMFmaxillomandibularfxationsystemaninnovationormanagingacialtrauma.BycombiningthestrengthandrigidityoarchbarswiththesaetyandeciencyoMMFscrewsUniversalSMARLockbringsthestandardocareorMMFtechniquesintothe21stcentury.Closedreductionothejawscanbeaccomplishedwithlessexposurerisktothesurgeondecreasedoperativetimeandexcellentskeletalstability.Aneectiveandtechnicallysimpleprocessitmaychangethesurgicalmanagementomaxillaryandmandibularfxationorallsurgicalspecialties.OURFOOTANKLEsalesteamexceeded100millioninsales.1INNOVATINGFACIALSURGERYTeStrykerHybridMMFsystemiseasytoapplycomortableorthepatientsandcanimpressivelyincreaseasurgeonsefciency.MichaelD.TurnerD.D.S.M.D.F.A.C.S.9 ACCELERATINGGLOBALGROWTHWehave25000employeesaroundtheworldandsellproductsinmorethan100countries.Becauseofthediversityofouroperationsweunderstandlocalneedsandbuildstrongworkingrelationshipswithourcustomers.Byhavingdedicatedemployeescloselyinvolvedinday-to-dayactivitiesandbyhelpingourcustomersdeliveroptimalcarefortheirpatientsineachmarketwehaveaformidableplatformtoaccelerateglobalgrowth.EMPLOYEESAROUNDTHEWORLDIN201325000STRYKER2013ANNUALREVIEW10 11 ACCELERATINGGLOBALGROWTHOuracquisitionorausonHoldingsCompanyLimitedin2013isacriticalsteptowardbroadeningourpresenceinChinaanddevelopingaplatormorthegrowingvaluesegmentotheChineseorthopaedicmarketaswellasorotheremergingmarkets.Awell-establishedbrandrausonistheleadingtraumamanuacturerinChinaandamajorcompetitorinthespinesegment.TecombinedscalelocalandglobalexpertisecomplementaryproductoeringsandmarketbreadthorausonandStrykercreatesignifcantcompetitiveadvantagesandunderscoreStrykerscommitmenttostrengtheningitspresenceglobally.THETRAUSONACQUISITIONisacompellingopportunitytodrivegrowthinChina.SEIZINGOPPORTUNITIESINCHINACHANGZHOUCHINASTRYKER2013ANNUALREVIEW12HHI Tegoalistoimprovethequalityolieorpeoplesuferingromachondroplasia.Dr.IgnacioGinebreda20MPIECESRECEIVEDANDSHIPPEDTHROUGHINDIANAPOLISANDVENLOFACILITIESCarloshadseverelybowedlegsasasmallchildaresultoachondroplasiaacommonormodwarfsm.Hisparentsagreedtoasurgicalinterventionthatwouldelongatehislegs.Temostappropriatemomenttostartisasapre-teenwhenthebonesandsotissuehavesucientelasticitysaysDr.IgnacioGinebredaanexpertattheClinicDexeusinBarcelonaSpain.Mostpatientscompletetheprocessinthreeorouryears.Carloswhoisnow19andstudyingcommunicationsincollegehasbeenabletoliveamoreactiveandsociallyintegratedlie.StrykersriaxBluemonolateralexternalfxatorsareusedtolengthenthetibiaandriaxYellowcanbeusedorsmalltibiaelongation.Strykersglobalsupplychainisnotjustaboutwarehousinganddistribution.odayitsahighlycoordinatednetworkoresourcesincludingproductsromsevendivisionswithsowaredesignedtoimproveservicereducecostsStrykersaved18millionin2013andprovideaconsistentlyhighstandardoquality.InadditiontoournewcentraldistributioncenterinIndianapoliswenowhavesystemsthatanalyzeshippingdataandstreamlinedeliveriesinuniquewaystohelpcustomerssavemoney.OurVenloacilityintheNetherlandsnowsupportsEuropeEasternEuropetheMiddleEastAricaandprovidesanordermanagementsystemorourglobalneurovascularbusiness.MOVINGPRODUCTSEFFICIENTLYLIVINGAMOREACTIVELIFE13 STRYKER2013ANNUALREVIEW14 FOCUSINGONOURCULTUREANDVALUESogetherwithourcustomerswearedriventomakehealthcarebetter.Tissimplesentenceisnotonlyourmissionitalsorefectsourvalues.Teresneverbeenatimewhencollaborationwithourcustomerstohelpguideourinvestmentininnovativeproductsandserviceshasbeenmoreimportant.INVESTEDINRESEARCHANDDEVELOPMENTIN2013536M15 Maximizingcapitalinvestmentsismoreimportantthaneverintodayscost-conscioushealthcareenvironment.TomeetthisneedourProCarebusinessprovidesmaintenanceserviceandworkowservicesthatcanmaximizethelieandvalueoourcustomerscapitalinvestmentsminimizeoperatingcostsandhelptoimprovepatientoutcomes.SurveydataindicatesthatourProCareservicesavedcustomers28onequipmentrepaircostsreducedoperatingroomdowntimeby57andincreasedequipmentlieby94.WithsuchresultsourProCareserviceoeringishelpingustosolvecustomerproblemsandtobuildandmaintaindeeperrelationships.FOCUSINGONOURCULTUREANDVALUESEXTENDINGTHELIFEOFCAPITALEQUIPMENT28579491REDUCTIONINEQUIPMENTCOSTSHAVEMORETIMEANDENERGYFORPATIENTCAREREDUCTIONINO.R.DOWNTIMEINCREASEINTOOLLIFESPANtsFIXINGGENETICDEFECTSSarahwasbornwithaormoCrouzonsSyndromeageneticdisordercharacterizedbytheprematureusionocertainskullboneswhichpreventstheskullromgrowingnormallyaectingtheshapeotheheadandaceandpotentiallycausingdevelopmentaldelays.DuringarecentsurgerySarahreceivedourMEDPORCustomizedImplantsmaderomabiocompatiblematerialdesignedtocorrectdeectsinthemaxilloacialorcranioacialboneandalloworfbrovascularin-growthandpatient-tissueintegration.SincehersurgerySarahsappearancehasimproveddramaticallyandsheisprogressingwellandbecomingmoresociable.ImplantsarespeciicallydesignedoreachpatientromCTdata.IonlywishIhadtheabilitytogobackandperformhundredsofsurgerieswiththistechnology.Dr.WilliamP.MageeJr.D.D.S.M.D.STRYKER2013ANNUALREVIEW16 a81RECEIVEBETTERIN-SERVICINGANDEQUIPMENTTRAININGPERFORMANCESOLUTIONSHELPINGOURCUSTOMERSACHIEVETHEIRGOALSOurPerormanceSolutionsgroupisdedicatedtohelpinghospitalsandphysiciangroupsachievetheirclinicaloperationalandfnancialperormancegoals.Byanalyzingmetricsandoptimizingservicesandsystemswehelpcustomersimprovepatientoutcomesandincreaseeciencies.Ourteamsimplementimprovementsorsuchkeyindicatorsaslengthostayreadmissionspatientandsurgeonsatisactiontreatmentcomplicationsvolumehealthcarereormstrategiesandthealignmentohospitalsandphysicians.ArecentexampleothisworkthecreationotheCenterorAdvancedRecoveryadesignatednetworkohigh-perormingacilitiesorjointreplacementandspinereectingastringentmeasuringprocesshighstandardsandresults.PATIENTEXPERIENCEWeoerapatient-centricmodelacrossthecarecontinuumwithaocusoncarecoordinationandpatientandamilyeducation.Tegoalistoimprovepatientsatisactionwhichcanincreaseword-o-mouthreerralsandvolumeandimprovereputation.QUALITYOUTCOMESWithhigher-qualityoutcomeswhichcanincludereducinglengthostayreadmissionsandcomplicationsaswellasincreasingvolumehospitalscanimprovepayorreimbursements.PROFITABILITYFocusingonbothphysicianandprovidereconomicswearehelpingtoincreasevolumeandreducecoststhroughastandardizedcaremodelandprocessimprovementswhichcandrivebetteralignmentandhelpcustomersthrivethroughhealthcarereorm.17 SUSTAINABILITYSOLUTIONSDIVERTINGLANDFILLWASTEBRINGINGBACKSMILESWearehelpinghospitalsuseresourcesinameaningfulandprudentmanner.8.9MPOUNDSOFWASTEDIVERTEDFROMLANDFILLS1MINCASHANDPRODUCTDONATIONSTOOPERATIONSMILESince1999Strykerhasdonatedmorethan1millionincashandproductstoOperationSmilesupportedhundredsomedicalproessionalsromaroundtheworldthroughthePhysiciansTrainingProgramandsponsoredmorethan100plasticsurgeryresidentsintheStrykerFellowshipprogram.Single-usemedicaldevicereprocessingprogramshavebecomeabestpracticeamong3000hospitalsacrosstheU.S.includingmostothoselistedonU.S.NewsWorldReportsHonorRoll.In2013Strykerhelpedhospitalsandambulatorysurgerycenterssavemorethan255millioninsupplyexpensesanddivertcloseto8.9millionpoundsowasteromlandflls.Strykerprovidesreprocessingandremanuacturingservicesormedicaldevicesaswellascomprehensiverecyclingandredistributioninitiatives.Wewerethefrstglobaloriginalmanuacturertooerthesekindsoprogramstohelpmeettheresourcemanagementdemandsoourhospitalpartners.Wehelpredirectconsumableandfnancialresourcestopromotehealthyandresponsiblehospitals.AtStrykerourbusinessisbuiltonsustainabilitymakinglong-termcontributionsinaresponsiblewaytoourcustomersandtheirpatientstoouremployeestoourcommunitiesandtoourshareholders.TAKINGRESPONSIBILITYSTRYKER2013ANNUALREVIEW18 HOWARDL.LANCEFormerChairmanPresidentandChieExecutiveOfcerHarrisCorporationDirectorEastmanChemicalCompanyLOUISEL.FRANCESCONIFormerPresidentRaytheonMissileSystemsFormerVicePresidentRaytheonCompanyChairTucsonMedicalCenterHealthcareBoardoTrusteesDirectorUNSEnergyCorporationANDREWK.SILVERNAILChairmanandChieExecutiveOfcerIDEXCorporationTrusteeManuacturersAllianceorProductivityandInnovationWILLIAMU.PARFETNon-ExecutiveChairmanStrykerCorporationChairmanandChieExecutiveOfcerMPIResearchInc.DirectorMonsantoCompanyDirectorTaubmanCentersInc.KEVINA.LOBOPresidentandChieExecutiveOfcerStrykerCorporationDirectorParker-HannifnCorporationHOWARDE.COXJR.PartnerGreylockDirectorSecretaryoDeenseBusinessBoardMemberHarvardMedicalSchoolBoardoFellowsMemberInvestmentCommitteesotheDanaFarberCancerInstitutePartnersHealthcareSystemInc.andtheBostonMuseumoFineArtsALLANC.GOLSTONPresidentUnitedStatesProgramortheBillMelindaGatesFoundationRONDAE.STRYKERViceChairandDirectorGreenleaTrustTrusteeSpelmanCollegeandKalamazooCollegeViceChairKalamazooCommunityFoundationgranddaughterotheounderotheCompanyanddaughteroaormerpresidentotheCompanyROCHDOLIVEUXD.V.M.ChieExecutiveOfcerandChairmanotheExecutiveCommitteeUCBS.A.SRIKANTM.DATARPH.D.ArthurLowesDickinsonProessoroAccountingHarvardUniversityDirectorNovartisAGDirectorICFInternationalInc.DirectorT-MobileUSInc.DirectorHCLTechnologiesLtd.BOARDOFDIRECTORSAuditCommitteeFinanceCommitteeCompensationCommitteeGovernanceandNominatingCommitteeromletoright19 TeBoardoDirectorsandManagementoStrykerCorporationacknowledgetheretirementoWilliamR.EnquistPresidentEndoscopydivisionaer27yearsodedicatedservice.Mr.EnquistledtheSanJoseCaliorniabasedEndoscopydivisionor17years.Duringhistenureasdivisionpresidentannualglobalsalesoourendoscopyproductsgrewrom90milliontoover1billion.Underhisleadershipthedivisionwasconsistentlyrecognizedorindustry-leadingproductinnovationoutstandingsalesexecutionstrongemployeeengagementandsuccessindevelopingandexportingleaderstootherdivisionswithinStryker.InrecentyearstheEndoscopydivisionhasbeenconsistentlyrecognizedasatopplacetoworkintheBayAreabyseveralpublicationsincludingtheSanFranciscoBusinessTimestheSiliconValleyBusinessJournalandtheSanJoseMercuryNews.Mr.EnquistssuccessindrivingahighlyengagedcultureandbuildingwinningleadershipteamsleavestheEndoscopydivisionwellpoisedorcontinuedsuccess.KEVINA.LOBOPresidentandChieExecutiveOcerYINC.BECKERVicePresidentCommunicationsPublicAairsandStrategicMarketingSTEVENP.BENSCOTERVicePresidentHumanResourcesSCOTTP.BRUDERM.D.PH.D.VicePresidentChieMedicalandScientifcOcerLONNYJ.CARPENTERGroupPresidentGlobalQualityandOperationsDAVIDK.FLOYDGroupPresidentOrthopaedicsCURTISE.HALLESQ.VicePresidentandChieLegalOcerWILLIAMR.JELLISONVicePresidentandChieFinancialOcerKATHERINEA.OWENVicePresidentStrategyandInvestorRelationsTIMOTHYJ.SCANNELLGroupPresidentMedSurgandNeurotechnologyRAMESHSUBRAHMANIANGroupPresidentInternationalDEANH.BERGYVicePresidentCorporateSecretaryWILLIAME.BERRYJR.VicePresidentCorporateControllerJEANNEM.BLONDIAVicePresidentFinanceandreasurerDAVIDG.FURGASONVicePresidentaxJAMESB.PRAEGERVicePresidentFinancerainingDevelopmentandInternalAuditELIZABETHA.STAUBVicePresidentRegulatoryAairsandQualityAssuranceBRONWENR.TAYLORVicePresidentComplianceandRiskManagementOTHEROFFICERSEXECUTIVELEADERSHIPTEAMWITHAPPRECIATIONXAVIERBERLINGPresidentEuropePETERBRADLEYPresidentJapanWAYNED.DAHLBERGPresidentPerormanceSolutionsJAMESN.HEATHPresidentInstrumentsWILLIAMJ.HUFFNAGLEPresidentReconstructivePAULMARCUNPresidentEasternEuropeMiddleEastAricaIndiaVIVIANMASSONPresidentraumaExtremitiesGRAHAMMCLEANPresidentSouthPacifcDAVIDA.MURPHYPresidentAmericasMARKH.PAULPresidentNeurovascularJ.ANDREWPIERCEPresidentEndoscopyBRADFORDL.SAARPresidentMedicalBRENTSCOTTPresidentGreaterChinarausonInternationalSPENCERS.STILESPresidentSpineBRIANJ.WHITEPresidentSustainabilitySolutionsDIVISIONLEADERSHIPWILLIAMR.ENQUIST27YEARSOFDEDICATEDSERVICECHAIRMANEMERITUSJOHNW.BROWNChairmanEmeritusandormerChairmanPresidentandChieExecutiveOceroStrykerCorporationSTRYKER2013ANNUALREVIEW20 INDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRMErnstYoungLLPGrandRapidsMichiganTRANSFERAGENTANDREGISTRARAmericanStockTransferTrustCompanyLLCNewYorkNewYorkShareholdersneedinginormationregardingtheircertiicatesordividendsshouldcontactAmericanStockTransferTrustCompanyLLCOperationsCenter620115thAvenueNewYorkNY112198009375449infoamstock.comINVESTORCONTACTKatherineA.OwenVicePresidentStrategyandInvestorRelationsMEDIACONTACTYinC.BeckerVicePresidentCommunicationsPublicAffairsandStrategicMarketingBUSINESSDEVELOPMENTCONTACTBryantS.ZankoVicePresidentBusinessDevelopmentANNUALMEETINGTeAnnualMeetingoShareholdersoStrykerCorporationwillbeheldattheRadissonPlazaHotelSuitesatTeKalamazooCenterinKalamazooMichiganonuesdayApril222014at200p.m.E.STOCKLISTINGTeCompanyscommonstockistradedontheNewYorkStockExchangeunderthesymbolSYK.FORM10-KTeCompanyflesaForm10-KwiththeSecuritiesandExchangeCommission.Shareholderswantingacopyothe2013reportmayobtainitreeochargeatwww.stryker.comorrequestitbywritingtoInvestorRelationsStrykerCorporation2825AirviewBoulevardKalamazooMI49002TRADEMARKSTeollowingtrademarksorservicemarksoStrykerCorporationitsdivisionsorothercorporatealiatedentitiesappearinthisannualreviewCenterorAdvancedRecoveryCompleteStrokeCareMAKOPlastyMAKOSurgicalMEDPORMemometalNeptunePrimeSeriesProCareRioSMARLockStrykerrausonrevoriax.Allothertrademarksorservicemarksaretrademarksorservicemarksotheirrespectiveownersorholders.TeproductsreerencedwithinthisreviewmaynotallbeapprovedorclearedorsaledistributionoruseintheUnitedStates.DIVERSITYANDINCLUSIONStrykervaluesaninclusiveworkenvironmentthathiresandengagesatalentedanddiverseworkorce.Achievingtheullpotentialothisdiversityisabusinessprioritythatisundamentaltoourcompetitivesuccess.Weencourageandexpecteachemployeetoembraceourcommitmenttoaninclusiveworkplacethatisreeromanykindodiscriminationretaliationorbias.ADDITIONALINFORMATIONGLOBALRECOGNITIONFORTUNEWORLDSMOSTADMIREDCOMPANIESINMEDICALEQUIPMENT3IN2013RECIPIENTFORTHETWELFTHCONSECUTIVEYEARGREATPLACETOWORKINSTITUTECANADA42IN2013RECIPIENTFORTHEFOURTHCONSECUTIVEYEARFORTUNE500LARGESTU.S.-BASEDCOMPANIES305IN2013JOINEDTHELISTIN2003AS493FORTUNE100BESTCOMPANIESTOWORKFORU.S.42INJANUARY2014RECIPIENTFORTHEFOURTHCONSECUTIVEYEARUKSUNDAYTIMES100BESTMIDCOMPANIESTOWORKFORSTRYKERUKLTD.RECIPIENTFORTHESEVENTHCONSECUTIVEYEARGALLUPGREATWORKPLACEAWARDRECIPIENTFORTHESIXTHTIMEDesignbyAddisonwww.addison.comPrintingbyPhoenixLithographingInc. StrykerCorporation2825AirviewBoulevardKalamazooMichigan490022693852600stryker.com
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2013annualreview FINANCIALHIGHLIGHTSFINANCIALOVERVIEWINMILLIONSEXCEPTPERSHAREAMOUNTS20132012CHANGENETSALES902186574.2EARNINGSBEFOREINCOMETAXES1212170528.9INCOMETAXES20640749.4NETEARNINGS1006129822.5ADJUSTEDNETEARNINGS23161615603.6DILUTEDNETEARNINGSPERSHAREOFCOMMONSTOCKREPORTED2.633.3922.4ADJUSTED124.234.073.9DIVIDENDSPAIDPERSHAREOFCOMMONSTOCK1.060.8524.7CASHCASHEQUIVALENTSANDCURRENTMARKETABLESECURITIES398042857.110.08.06.04.02.00.09.020131993HISTORYOFREVENUEGROWTHINBILLIONS5.04.03.02.01.00.020082013ADJUSTEDDILUTEDNETEARNINGS12PERSHARE1.51.00.5020082013DIVIDENDSPAIDPERSHAREOFCOMMONSTOCK2.52.01.51.00.5020082013CASHFLOWPROVIDEDBYOPERATINGACTIVITIESINBILLIONS1.91.064.231Anon-GAAPfinancialmeasure.ThemostcomparableGAAPfinancialmeasureisdilutednetearningspersharewhichwere2.782.773.193.453.39and2.63in20082009201020112012and2013respectively.2Forareconciliationbetweenthesenon-GAAPfinancialmeasuresandtheirmostcomparableGAAPfinancialmeasurerefertoourAnnualReportsonForm10-Kavailableonourwebsiteatwww.stryker.comorattheSECswebsiteatwww.sec.gov.3Anon-GAAPfinancialmeasure.ThemostcomparableGAAPfinancialmeasureisnetearnings. expectthistrendtocontinuegiventhesignifcantopportunityinthesemarkets.WecompletedtwostrategicacquisitionsrausonHoldingsCompanyLimitedandMAKOSurgicalCorp.whichprovideexcitinggrowthprospectsoryearstocome.rausonourfrstacquisitioninChinawhichwascompletedinMarchenablesustocompeteinthelower-pricedsegmentothegrowingorthopaedicmarketinChinaandothermarkets.Teintegrationhasproceededsmoothlyandwearedelightedtobeontrackwithourexpectations.InlateDecember2013weclosedtheacquisitionoMAKOwhichprovidesuswitharoboticarmassistedplatormorreconstructivesurgery.Itholdsthepromisetodeliverconsistentreproducibleproceduresthatwillenhancethesurgeonandpatientexperience.Weviewthisasauniqueopportunitytotransormorthopaedicsurgeryovertimeincludingnewimplantdesignsenabledbyrobotics.AercompletingmyfrstullyearasCEOIamexcitedaboutourCompanysachievementsandtheprogresswehavemadeinstrengtheningourleadershipinthemedicaltechnologyindustry.AsyoureadthroughthisreviewIbelieveyouwillagreethatStrykeriswellpositionedortheuture.In2013wemetourprimaryobjectivesachievedstrongtop-linegrowthdeliveredsolidoperationalearningsexpandedgloballyandinvestedthroughRDandacquisitionstostrengthenourproductandserviceoerings.FOCUSONGROWTHIn2013ourorganicgrowthexcludingacquisitionsandoreignexchangeo5wasatthehighendomedicaltechnologyincludingdouble-digitgrowthinmanybusinessesasuccessulturnaroundinEuropeandrapidgrowthinemergingmarkets.raumaExtremitiesNeurotechnologyEndoscopyandourHipbusinessallhadstrongabove-marketgrowthintheyear.InEuropewhichremainsachallengingmarketourturnaroundoccurredaheadoscheduleaswereturnedtomarketgrowthbythemiddleotheyear.WewillalsobeestablishingaEuropeanheadquartersinAmsterdamin2014tostrengthenouroundationoruturegrowth.Wehadverystrongdouble-digitgainsinEmergingMarketsledbyChinawithexcellentresultsinboththepremiumandvaluesegmentsothemarket.Emergingmarketsgrewrom6ototalCompanysalesin2012toover7osalesin2013andweLETTERFROMTHEPRESIDENTANDCEOKEVINA.LOBO9.0BNETSALES5ORGANICSALESGROWTHDEARSHAREHOLDERS1 ORGANIZATIONALSTRENGTHOnekeyreasonoroursuccessisthedecentralizedmannerinwhichweoperateourbusinesses.DivisionpresidentshavedirectresponsibilityorSalesMarketingRDandBusinessDevelopment.Teyarelaser-ocusedontheircustomersneedsandtheirteamsentrepreneurialspiritdrivessustainedhighgrowth.SpecializedsalesorceswithdriveandpassioncontinuetobeacorestrengthatStryker.Wealsohaveahigh-perormingGlobalQualityandOperationsorganizationthatisontrackwithourprogramtosave500millionincumulativecoststhroughnetworkandsupplychainimprovements.TisincludesanewlycreateddistributioncenterinIndianapolisIndianaandecienciesthroughourVenloNetherlandsdistributioncenter.Ourgoalistocontinuetodeliveryear-over-yearavorablereductionsincostogoodssoldworkingcapitalimprovementso250millionanda30-dayimprovementindaysoinventoryonhand.In2013despitepricingpressureouradjustedgrossmarginexpandedby30basispointsexcludingtheimpactotheMedicalDeviceExciseax.DuringtheyearweullystaedtheStrykerExecutiveLeadershipeamatalentedgroupoindividualswithdeephealthcareexperienceandadiversityobackgroundsandstyles.WeAlsoinDecember2013weannouncedourintenttoacquirePatientSaetyechnologiesInc.whoseproprietarysowarehelpspreventretainedoreignobjectsinpatientswhileintheoperatingroomtherebyimprovingpatientsaetyandreducinghealthcarecosts.TisacquisitionwilloldintotheInstrumentsdivisionandwillcomplementexistingtechnologiesandsolutionsthatimprovecaregiverandpatientsaety.Additionallywecontinuedtostrengthenourqualityprogramwithsuccessulresultsromregulatoryinspectionsandwereceived510kFDAclearancetomarketamodifedNeptune2WasteManagementSystemwhichisanimportantproducttoourcustomersasitreducesharmulexposuretouidsandsmokeintheoperatingroom.STRONGFINANCIALRESULTSWedeliveredconsistentresultsthroughout2013withnetsalesreaching9billiona4.2increaseandouradjusteddilutednetEPSwas4.23persharea3.9increase.BothnetsalesandadjusteddilutednetEPSwereimpactedbyoreignexchangeearningswerealsonegativelyaectedbytheU.S.MedicalDeviceExciseax.AdjustingortheseitemsadjusteddilutednetEPSimprovedbydoubledigitsshowingstrongoperationalleverage.Wealsocontinuedtogeneratehealthyoperationalcashowup14vs.2012whichcontributedtocashequivalentsandmarketablesecuritiesexceedingdebtby1.2billionattheendotheyear.Tisbalancesheetstrengthenabledustocompleteacquisitionsannounceanincreaseinourdividendpershareo15ortheJanuary2014paymentandrepurchase317millionosharesduringtheyear.LETTERFROMTHEPRESIDENTANDCEOTOGETHERWITHOURCUSTOMERSWEAREDRIVENTOMAKEHEALTHCAREBETTER15INCREASEINOURDIVIDENDSTRYKER2013ANNUALREVIEW2 establishedanewmissionstatementortheCompanyTogetherwithourcustomerswearedriventomakehealthcarebetter.TismissionisbeingrolledoutacrosstheCompanyandrecognizesourcommitmenttoclosecustomerconnectionsouruniqueperormance-drivencultureandoursenseopurposeinimprovinghealthcare.WealsochosetobeexplicitaboutourvaluesIntegrityAccountabilityPeopleandPerformance.TesevaluesarehallmarksoStrykerscultureandwillremaininplaceregardlessohowweevolvetomeetthechanginglandscape.BRIGHTFUTURETeseareexcitingtimesorStrykerandourindustryandweplantodeliveranothersolidfnancialperormancein2014.Weexpectorganicsalesgrowthtobeintherangeo4.5to6.0onceagainatthehighendomedicaltechnology.Ioreigncurrencyexchangeratesholdnearcurrentlevelsweexpectalessthan1negativeimpactonnetsales.Regardingearningswewillexcludeamortizationointangibleassetsromouradjusteddilutednetearningspersharewhichweexpecttobeintherangeo4.75to4.90usingthisnewmeasure.Tisrepresentsa6to9improvementover2013whichissolidoperationalleverageconsideringthatoreignexchangewillcontinuetoweighonearningsespeciallyinthefrsthalotheyear.AswecloseoutaproductiveyearandlookconfdentlytotheutureIwanttotakeamomenttothankourNon-ExecutiveChairmanBillParetandourBoardoDirectorsortheirsupportandguidanceregardingourgrowthagenda.IalsowanttoexpressmyappreciationtoDirectorHowardLancewhowillberetiringromtheBoardaerouryearsoserviceandociallywelcomeournewestDirectorAndySilvernailCEOoIDEXCorporation.Ialsowanttoexpressmygratitudetoourmorethan25000employeesaroundtheworldwhoinspiremeeverydaywiththeirhardworkcreativityandinitiative.WecontinuetoreceivemanyaccoladesoremployeeengagementincludingFortunemagazinesdesignationortheourthconsecutiveyearthatStrykerisoneothe100BestCompaniestoWorkForintheU.S.AsItraveltheworldandseeourprogressitiscleartomethatwearewellpositionedortheuture.SincerelyKEVINA.LOBOPresidentChieExecutiveOcerNAMEDONEOFTHE100BESTCOMPANIESTOWORKFORBYFORTUNEMAGAZINE3 INSTRUMENTS14MEDICAL8SPINE8ENDOSCOPY13KNEES15HIPS14TRAUMAEXTREMITIES12OTHER3SUSTAINABILITYSOLUTIONS2NEUROSURGICALSPINEANDENT3NEUROVASCULAR5CRANIOMAXILLOFACIAL3BREADTHANDDEPTHNEUROTECHNOLOGYSPINE19RECONSTRUCTIVE44MEDSURG37RECONSTRUCTIVETissegmentincludeskneeshipstraumaextremitiesincludingfootankleandotherproductssuchassportsmedicinejointpreservationandorthobiologicsbiosurgery.MEDSURGTissegmentincludesinstrumentsbonecuttingsurgicalaccessoriesandcomputer-assistedsurgeryendoscopyminimallyinvasivesurgicalsolutionsandintegrationconnectivitymedicalpatientcarepatienthandlingandemergencymedicalservicesequipmentandsustainabilitysolutionsreprocessingandremanufacturing.NEUROTECHNOLOGYSPINETissegmentincludesspinalimplantsandinterventionalspineproductsneurovascularNSEneurosurgicalspineandearnoseandthroatandcraniomaxillofacialproducts.STRYKER2013ANNUALREVIEW4 MAKINGHEALTHCAREBETTERStrykerisoneotheworldsleadingmedicaltechnologycompaniesandtogetherwithourcustomerswearedriventomakehealthcarebetter.TeCompanyofersadiversearrayoinnovativemedicaltechnologiesincludingreconstructivemedicalandsurgicalandneurotechnologyandspineproductstohelppeopleleadmoreactiveandmoresatisyinglives.Strykerproductsandservicesareavailableinover100countriesaroundtheworld.Pleasecontactusormoreinormationatwww.stryker.com. STRYKER2013ANNUALREVIEW6 DEVELOPINGBREAKTHROUGHTECHNOLOGIESStrykerpushesthefrontiersofmedicalresearchwithuncompromisingclinicalintegrityandinnovativetechnologiestoimprovethelivesofpatientsaroundtheworld.Tekeytooursuccessisbasedonourcloserelationshipswithourcustomerswhichhelpustounderstandhowwecanbestassistthemandtheirpatients.Asatrustedpartnerweworkdirectlywiththousandsofhealthcareproviderstoprovidethetoolstheyneedandtobuildbestpracticesintoeverythingwedo.PATENTSOWNEDGLOBALLYIN201352037 DEVELOPINGBREAKTHROUGHTECHNOLOGIESDEVELOPINGBREAKTHROUGHTECHNOLOGIES1AmericanHeartAssociation.HeartDiseaseandStrokeStatistics2012Update.DallasexasAmericanHeartAssociation2012.2012AmericanHeartAssociation.2Smithetal.SigniicanceoLargeVesselIntracranialOcclusionCausingAcuteIschemicStrokeandIA.Stroke20094038343840.ADVANCINGROBOTICARMASSISTEDSURGERYInDecember2013StrykercompletedtheacquisitionoMAKOSurgicalCorp.apioneerintheadvancementoroboticarmassistedsurgeryinorthopaedics.MAKOisknownoritsagshipMAKOplastyPartialKneeResuracingprocedureortreatingosteoarthritisthathasnotprogressedthroughouttheentirekneeandmorerecentlyorMAKOplastyotalHipReplacementwhichhasdemonstratedbeneftsinpatientoutcomesinmorethan30000casesduringthepastfveyears.WithMAKOstechnologyplatormandourinnovationsinjointreconstructionwelookaheadtosimpliyingjointreconstructionproceduresandincreasingtheconsistencyreproducibilityandprecisionojointsurgeriesresultinginanimprovedpatientexperience.Every40secondssomeonesuersastrokealeadingcauseoseriouslong-termdisabilityintheU.S.andtheourthleadingcauseodeath.87ostrokesareischemic1causedbyablockageobloodowtothebrainandapproximately46othesearelarge-vesselocclusions2withpooroutcomesandhighmortality.TisiswhyStrykerintroducedtherevoXPProVueRetrieveraourth-generationrevoproductthatisdesignedtocaptureandremovetheclotsandrestorebloodowtothebrain.TerevoXPProVueRetrieverisjustoneexampleoStrykerscommitmenttoprovidecompletestrokecareorpatients.RESTORINGBLOODFLOWSTRYKER2013ANNUALREVIEW8 Strykerisdedicatedtoprovidinginnovativeproductsandoutstandingservicetoootandanklesurgeonsaroundtheworld.OurcomprehensiveportolioincludesplatingexternalfxationnailingscrewsandMemometalnitinolproducts.Teseproductsreectourcommitmenttoimprovepatientslivesaswecontinuetopartnerwithsurgeonstodriveinnovationeducationandresearch.BecauseothiscommitmentoursalesteaminFootAnkleexceeded100millioninsalesin2013makingStrykertheastestgrowingbusinessintheU.S.ootandanklemarket.HELPINGPATIENTSGETONTHEIRFEETINWORLDWIDESALESintheootandanklemarket.In2013StrykerlaunchedtheUniversalSMARLockHybridMMFmaxillomandibularfxationsystemaninnovationormanagingacialtrauma.BycombiningthestrengthandrigidityoarchbarswiththesaetyandeciencyoMMFscrewsUniversalSMARLockbringsthestandardocareorMMFtechniquesintothe21stcentury.Closedreductionothejawscanbeaccomplishedwithlessexposurerisktothesurgeondecreasedoperativetimeandexcellentskeletalstability.Aneectiveandtechnicallysimpleprocessitmaychangethesurgicalmanagementomaxillaryandmandibularfxationorallsurgicalspecialties.OURFOOTANKLEsalesteamexceeded100millioninsales.1INNOVATINGFACIALSURGERYTeStrykerHybridMMFsystemiseasytoapplycomortableorthepatientsandcanimpressivelyincreaseasurgeonsefciency.MichaelD.TurnerD.D.S.M.D.F.A.C.S.9 ACCELERATINGGLOBALGROWTHWehave25000employeesaroundtheworldandsellproductsinmorethan100countries.Becauseofthediversityofouroperationsweunderstandlocalneedsandbuildstrongworkingrelationshipswithourcustomers.Byhavingdedicatedemployeescloselyinvolvedinday-to-dayactivitiesandbyhelpingourcustomersdeliveroptimalcarefortheirpatientsineachmarketwehaveaformidableplatformtoaccelerateglobalgrowth.EMPLOYEESAROUNDTHEWORLDIN201325000STRYKER2013ANNUALREVIEW10 11 ACCELERATINGGLOBALGROWTHOuracquisitionorausonHoldingsCompanyLimitedin2013isacriticalsteptowardbroadeningourpresenceinChinaanddevelopingaplatormorthegrowingvaluesegmentotheChineseorthopaedicmarketaswellasorotheremergingmarkets.Awell-establishedbrandrausonistheleadingtraumamanuacturerinChinaandamajorcompetitorinthespinesegment.TecombinedscalelocalandglobalexpertisecomplementaryproductoeringsandmarketbreadthorausonandStrykercreatesignifcantcompetitiveadvantagesandunderscoreStrykerscommitmenttostrengtheningitspresenceglobally.THETRAUSONACQUISITIONisacompellingopportunitytodrivegrowthinChina.SEIZINGOPPORTUNITIESINCHINACHANGZHOUCHINASTRYKER2013ANNUALREVIEW12HHI Tegoalistoimprovethequalityolieorpeoplesuferingromachondroplasia.Dr.IgnacioGinebreda20MPIECESRECEIVEDANDSHIPPEDTHROUGHINDIANAPOLISANDVENLOFACILITIESCarloshadseverelybowedlegsasasmallchildaresultoachondroplasiaacommonormodwarfsm.Hisparentsagreedtoasurgicalinterventionthatwouldelongatehislegs.Temostappropriatemomenttostartisasapre-teenwhenthebonesandsotissuehavesucientelasticitysaysDr.IgnacioGinebredaanexpertattheClinicDexeusinBarcelonaSpain.Mostpatientscompletetheprocessinthreeorouryears.Carloswhoisnow19andstudyingcommunicationsincollegehasbeenabletoliveamoreactiveandsociallyintegratedlie.StrykersriaxBluemonolateralexternalfxatorsareusedtolengthenthetibiaandriaxYellowcanbeusedorsmalltibiaelongation.Strykersglobalsupplychainisnotjustaboutwarehousinganddistribution.odayitsahighlycoordinatednetworkoresourcesincludingproductsromsevendivisionswithsowaredesignedtoimproveservicereducecostsStrykersaved18millionin2013andprovideaconsistentlyhighstandardoquality.InadditiontoournewcentraldistributioncenterinIndianapoliswenowhavesystemsthatanalyzeshippingdataandstreamlinedeliveriesinuniquewaystohelpcustomerssavemoney.OurVenloacilityintheNetherlandsnowsupportsEuropeEasternEuropetheMiddleEastAricaandprovidesanordermanagementsystemorourglobalneurovascularbusiness.MOVINGPRODUCTSEFFICIENTLYLIVINGAMOREACTIVELIFE13 STRYKER2013ANNUALREVIEW14 FOCUSINGONOURCULTUREANDVALUESogetherwithourcustomerswearedriventomakehealthcarebetter.Tissimplesentenceisnotonlyourmissionitalsorefectsourvalues.Teresneverbeenatimewhencollaborationwithourcustomerstohelpguideourinvestmentininnovativeproductsandserviceshasbeenmoreimportant.INVESTEDINRESEARCHANDDEVELOPMENTIN2013536M15 Maximizingcapitalinvestmentsismoreimportantthaneverintodayscost-conscioushealthcareenvironment.TomeetthisneedourProCarebusinessprovidesmaintenanceserviceandworkowservicesthatcanmaximizethelieandvalueoourcustomerscapitalinvestmentsminimizeoperatingcostsandhelptoimprovepatientoutcomes.SurveydataindicatesthatourProCareservicesavedcustomers28onequipmentrepaircostsreducedoperatingroomdowntimeby57andincreasedequipmentlieby94.WithsuchresultsourProCareserviceoeringishelpingustosolvecustomerproblemsandtobuildandmaintaindeeperrelationships.FOCUSINGONOURCULTUREANDVALUESEXTENDINGTHELIFEOFCAPITALEQUIPMENT28579491REDUCTIONINEQUIPMENTCOSTSHAVEMORETIMEANDENERGYFORPATIENTCAREREDUCTIONINO.R.DOWNTIMEINCREASEINTOOLLIFESPANtsFIXINGGENETICDEFECTSSarahwasbornwithaormoCrouzonsSyndromeageneticdisordercharacterizedbytheprematureusionocertainskullboneswhichpreventstheskullromgrowingnormallyaectingtheshapeotheheadandaceandpotentiallycausingdevelopmentaldelays.DuringarecentsurgerySarahreceivedourMEDPORCustomizedImplantsmaderomabiocompatiblematerialdesignedtocorrectdeectsinthemaxilloacialorcranioacialboneandalloworfbrovascularin-growthandpatient-tissueintegration.SincehersurgerySarahsappearancehasimproveddramaticallyandsheisprogressingwellandbecomingmoresociable.ImplantsarespeciicallydesignedoreachpatientromCTdata.IonlywishIhadtheabilitytogobackandperformhundredsofsurgerieswiththistechnology.Dr.WilliamP.MageeJr.D.D.S.M.D.STRYKER2013ANNUALREVIEW16 a81RECEIVEBETTERIN-SERVICINGANDEQUIPMENTTRAININGPERFORMANCESOLUTIONSHELPINGOURCUSTOMERSACHIEVETHEIRGOALSOurPerormanceSolutionsgroupisdedicatedtohelpinghospitalsandphysiciangroupsachievetheirclinicaloperationalandfnancialperormancegoals.Byanalyzingmetricsandoptimizingservicesandsystemswehelpcustomersimprovepatientoutcomesandincreaseeciencies.Ourteamsimplementimprovementsorsuchkeyindicatorsaslengthostayreadmissionspatientandsurgeonsatisactiontreatmentcomplicationsvolumehealthcarereormstrategiesandthealignmentohospitalsandphysicians.ArecentexampleothisworkthecreationotheCenterorAdvancedRecoveryadesignatednetworkohigh-perormingacilitiesorjointreplacementandspinereectingastringentmeasuringprocesshighstandardsandresults.PATIENTEXPERIENCEWeoerapatient-centricmodelacrossthecarecontinuumwithaocusoncarecoordinationandpatientandamilyeducation.Tegoalistoimprovepatientsatisactionwhichcanincreaseword-o-mouthreerralsandvolumeandimprovereputation.QUALITYOUTCOMESWithhigher-qualityoutcomeswhichcanincludereducinglengthostayreadmissionsandcomplicationsaswellasincreasingvolumehospitalscanimprovepayorreimbursements.PROFITABILITYFocusingonbothphysicianandprovidereconomicswearehelpingtoincreasevolumeandreducecoststhroughastandardizedcaremodelandprocessimprovementswhichcandrivebetteralignmentandhelpcustomersthrivethroughhealthcarereorm.17 SUSTAINABILITYSOLUTIONSDIVERTINGLANDFILLWASTEBRINGINGBACKSMILESWearehelpinghospitalsuseresourcesinameaningfulandprudentmanner.8.9MPOUNDSOFWASTEDIVERTEDFROMLANDFILLS1MINCASHANDPRODUCTDONATIONSTOOPERATIONSMILESince1999Strykerhasdonatedmorethan1millionincashandproductstoOperationSmilesupportedhundredsomedicalproessionalsromaroundtheworldthroughthePhysiciansTrainingProgramandsponsoredmorethan100plasticsurgeryresidentsintheStrykerFellowshipprogram.Single-usemedicaldevicereprocessingprogramshavebecomeabestpracticeamong3000hospitalsacrosstheU.S.includingmostothoselistedonU.S.NewsWorldReportsHonorRoll.In2013Strykerhelpedhospitalsandambulatorysurgerycenterssavemorethan255millioninsupplyexpensesanddivertcloseto8.9millionpoundsowasteromlandflls.Strykerprovidesreprocessingandremanuacturingservicesormedicaldevicesaswellascomprehensiverecyclingandredistributioninitiatives.Wewerethefrstglobaloriginalmanuacturertooerthesekindsoprogramstohelpmeettheresourcemanagementdemandsoourhospitalpartners.Wehelpredirectconsumableandfnancialresourcestopromotehealthyandresponsiblehospitals.AtStrykerourbusinessisbuiltonsustainabilitymakinglong-termcontributionsinaresponsiblewaytoourcustomersandtheirpatientstoouremployeestoourcommunitiesandtoourshareholders.TAKINGRESPONSIBILITYSTRYKER2013ANNUALREVIEW18 HOWARDL.LANCEFormerChairmanPresidentandChieExecutiveOfcerHarrisCorporationDirectorEastmanChemicalCompanyLOUISEL.FRANCESCONIFormerPresidentRaytheonMissileSystemsFormerVicePresidentRaytheonCompanyChairTucsonMedicalCenterHealthcareBoardoTrusteesDirectorUNSEnergyCorporationANDREWK.SILVERNAILChairmanandChieExecutiveOfcerIDEXCorporationTrusteeManuacturersAllianceorProductivityandInnovationWILLIAMU.PARFETNon-ExecutiveChairmanStrykerCorporationChairmanandChieExecutiveOfcerMPIResearchInc.DirectorMonsantoCompanyDirectorTaubmanCentersInc.KEVINA.LOBOPresidentandChieExecutiveOfcerStrykerCorporationDirectorParker-HannifnCorporationHOWARDE.COXJR.PartnerGreylockDirectorSecretaryoDeenseBusinessBoardMemberHarvardMedicalSchoolBoardoFellowsMemberInvestmentCommitteesotheDanaFarberCancerInstitutePartnersHealthcareSystemInc.andtheBostonMuseumoFineArtsALLANC.GOLSTONPresidentUnitedStatesProgramortheBillMelindaGatesFoundationRONDAE.STRYKERViceChairandDirectorGreenleaTrustTrusteeSpelmanCollegeandKalamazooCollegeViceChairKalamazooCommunityFoundationgranddaughterotheounderotheCompanyanddaughteroaormerpresidentotheCompanyROCHDOLIVEUXD.V.M.ChieExecutiveOfcerandChairmanotheExecutiveCommitteeUCBS.A.SRIKANTM.DATARPH.D.ArthurLowesDickinsonProessoroAccountingHarvardUniversityDirectorNovartisAGDirectorICFInternationalInc.DirectorT-MobileUSInc.DirectorHCLTechnologiesLtd.BOARDOFDIRECTORSAuditCommitteeFinanceCommitteeCompensationCommitteeGovernanceandNominatingCommitteeromletoright19 TeBoardoDirectorsandManagementoStrykerCorporationacknowledgetheretirementoWilliamR.EnquistPresidentEndoscopydivisionaer27yearsodedicatedservice.Mr.EnquistledtheSanJoseCaliorniabasedEndoscopydivisionor17years.Duringhistenureasdivisionpresidentannualglobalsalesoourendoscopyproductsgrewrom90milliontoover1billion.Underhisleadershipthedivisionwasconsistentlyrecognizedorindustry-leadingproductinnovationoutstandingsalesexecutionstrongemployeeengagementandsuccessindevelopingandexportingleaderstootherdivisionswithinStryker.InrecentyearstheEndoscopydivisionhasbeenconsistentlyrecognizedasatopplacetoworkintheBayAreabyseveralpublicationsincludingtheSanFranciscoBusinessTimestheSiliconValleyBusinessJournalandtheSanJoseMercuryNews.Mr.EnquistssuccessindrivingahighlyengagedcultureandbuildingwinningleadershipteamsleavestheEndoscopydivisionwellpoisedorcontinuedsuccess.KEVINA.LOBOPresidentandChieExecutiveOcerYINC.BECKERVicePresidentCommunicationsPublicAairsandStrategicMarketingSTEVENP.BENSCOTERVicePresidentHumanResourcesSCOTTP.BRUDERM.D.PH.D.VicePresidentChieMedicalandScientifcOcerLONNYJ.CARPENTERGroupPresidentGlobalQualityandOperationsDAVIDK.FLOYDGroupPresidentOrthopaedicsCURTISE.HALLESQ.VicePresidentandChieLegalOcerWILLIAMR.JELLISONVicePresidentandChieFinancialOcerKATHERINEA.OWENVicePresidentStrategyandInvestorRelationsTIMOTHYJ.SCANNELLGroupPresidentMedSurgandNeurotechnologyRAMESHSUBRAHMANIANGroupPresidentInternationalDEANH.BERGYVicePresidentCorporateSecretaryWILLIAME.BERRYJR.VicePresidentCorporateControllerJEANNEM.BLONDIAVicePresidentFinanceandreasurerDAVIDG.FURGASONVicePresidentaxJAMESB.PRAEGERVicePresidentFinancerainingDevelopmentandInternalAuditELIZABETHA.STAUBVicePresidentRegulatoryAairsandQualityAssuranceBRONWENR.TAYLORVicePresidentComplianceandRiskManagementOTHEROFFICERSEXECUTIVELEADERSHIPTEAMWITHAPPRECIATIONXAVIERBERLINGPresidentEuropePETERBRADLEYPresidentJapanWAYNED.DAHLBERGPresidentPerormanceSolutionsJAMESN.HEATHPresidentInstrumentsWILLIAMJ.HUFFNAGLEPresidentReconstructivePAULMARCUNPresidentEasternEuropeMiddleEastAricaIndiaVIVIANMASSONPresidentraumaExtremitiesGRAHAMMCLEANPresidentSouthPacifcDAVIDA.MURPHYPresidentAmericasMARKH.PAULPresidentNeurovascularJ.ANDREWPIERCEPresidentEndoscopyBRADFORDL.SAARPresidentMedicalBRENTSCOTTPresidentGreaterChinarausonInternationalSPENCERS.STILESPresidentSpineBRIANJ.WHITEPresidentSustainabilitySolutionsDIVISIONLEADERSHIPWILLIAMR.ENQUIST27YEARSOFDEDICATEDSERVICECHAIRMANEMERITUSJOHNW.BROWNChairmanEmeritusandormerChairmanPresidentandChieExecutiveOceroStrykerCorporationSTRYKER2013ANNUALREVIEW20 INDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRMErnstYoungLLPGrandRapidsMichiganTRANSFERAGENTANDREGISTRARAmericanStockTransferTrustCompanyLLCNewYorkNewYorkShareholdersneedinginormationregardingtheircertiicatesordividendsshouldcontactAmericanStockTransferTrustCompanyLLCOperationsCenter620115thAvenueNewYorkNY112198009375449infoamstock.comINVESTORCONTACTKatherineA.OwenVicePresidentStrategyandInvestorRelationsMEDIACONTACTYinC.BeckerVicePresidentCommunicationsPublicAffairsandStrategicMarketingBUSINESSDEVELOPMENTCONTACTBryantS.ZankoVicePresidentBusinessDevelopmentANNUALMEETINGTeAnnualMeetingoShareholdersoStrykerCorporationwillbeheldattheRadissonPlazaHotelSuitesatTeKalamazooCenterinKalamazooMichiganonuesdayApril222014at200p.m.E.STOCKLISTINGTeCompanyscommonstockistradedontheNewYorkStockExchangeunderthesymbolSYK.FORM10-KTeCompanyflesaForm10-KwiththeSecuritiesandExchangeCommission.Shareholderswantingacopyothe2013reportmayobtainitreeochargeatwww.stryker.comorrequestitbywritingtoInvestorRelationsStrykerCorporation2825AirviewBoulevardKalamazooMI49002TRADEMARKSTeollowingtrademarksorservicemarksoStrykerCorporationitsdivisionsorothercorporatealiatedentitiesappearinthisannualreviewCenterorAdvancedRecoveryCompleteStrokeCareMAKOPlastyMAKOSurgicalMEDPORMemometalNeptunePrimeSeriesProCareRioSMARLockStrykerrausonrevoriax.Allothertrademarksorservicemarksaretrademarksorservicemarksotheirrespectiveownersorholders.TeproductsreerencedwithinthisreviewmaynotallbeapprovedorclearedorsaledistributionoruseintheUnitedStates.DIVERSITYANDINCLUSIONStrykervaluesaninclusiveworkenvironmentthathiresandengagesatalentedanddiverseworkorce.Achievingtheullpotentialothisdiversityisabusinessprioritythatisundamentaltoourcompetitivesuccess.Weencourageandexpecteachemployeetoembraceourcommitmenttoaninclusiveworkplacethatisreeromanykindodiscriminationretaliationorbias.ADDITIONALINFORMATIONGLOBALRECOGNITIONFORTUNEWORLDSMOSTADMIREDCOMPANIESINMEDICALEQUIPMENT3IN2013RECIPIENTFORTHETWELFTHCONSECUTIVEYEARGREATPLACETOWORKINSTITUTECANADA42IN2013RECIPIENTFORTHEFOURTHCONSECUTIVEYEARFORTUNE500LARGESTU.S.-BASEDCOMPANIES305IN2013JOINEDTHELISTIN2003AS493FORTUNE100BESTCOMPANIESTOWORKFORU.S.42INJANUARY2014RECIPIENTFORTHEFOURTHCONSECUTIVEYEARUKSUNDAYTIMES100BESTMIDCOMPANIESTOWORKFORSTRYKERUKLTD.RECIPIENTFORTHESEVENTHCONSECUTIVEYEARGALLUPGREATWORKPLACEAWARDRECIPIENTFORTHESIXTHTIMEDesignbyAddisonwww.addison.comPrintingbyPhoenixLithographingInc. StrykerCorporation2825AirviewBoulevardKalamazooMichigan490022693852600stryker.com