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2010-2011

Investor Relations Katherine A. Owen Vice President, Strategy and Investor Relations Public & Media Relations Marci S. Kaminsky Vice President, Communications and Public Affairs 2825 Airview Boulevard Kalamazoo, MI 49002 t: 269 385 2600

Stryker Overview 2010-2011

Table of Contents
Stryker Overview
Company Leadership.1 Summary of Results..2 Net Sales3 Net Earnings as Reported..4 Adjusted Net Earnings from Continuing Operations5 Diluted Net Earnings per Share as Reported.6 Adjusted Diluted Net Earnings per Share from Continuing Operations...7 2010 Product Portfolio Sales.8 2010 Orthopaedic Implants Product Sales9 2010 MedSurg Equipment Sales...10 2010 Sales by Geography..11

Market Segment Overview12


Medical Technology Overview
2010 Worldwide Market13

Orthopaedic Market Segment Overview


2010 Worldwide Market by Product.14 2010 Worldwide Market by Company..15

Orthopaedic Implant Segment Overview


2010 Worldwide Reconstructive Market..16 2010 Worldwide Spinal Market17 2010 Worldwide Trauma & Craniomaxillofacial Market 18 2010 Worldwide Orthobiologics Market.. 19

MedSurg Equipment Segment Overview


2010 Worldwide Operating Room Equipment Market.20 2010 Worldwide Endoscopy Market.21 2010 North American Patient Handling Market...22 2010 US Medical Device Reprocessing Market...23

Neurovascular Segment Overview


2010 Worldwide Neurovascular Market..24

Stryker Overview 2010-2011

2010-2011

Stryker Overview 2010-2011

Company Leadership
CORPORATE OFFICERS
Stephen P. MacMillan Chairman, President and Chief Executive Officer Jeanne M. Blondia Vice President and Treasurer Lonny J. Carpenter Group President, Global Quality and Operations Andrew G. Fox-Smith Group President, International Curtis E. Hall Vice President, General Counsel and Secretary Curt R. Hartman Vice President and Chief Financial Officer Marci S. Kaminksy Vice President, Communications and Public Affairs Eric Lum Vice President, Tax Tony M. McKinney Vice President, Chief Accounting Officer Michael P. Mogul Group President, Orthopaedics Anne L. Mullally Vice President and Chief Compliance Officer Katherine A. Owen Vice President, Strategy and Investor Relations James B. Praeger Vice President, Finance Training, Development and Internal Audit Michael W. Rude Vice President, Human Resources Timothy J. Scannell Group President, MedSurg and Spine Elizabeth A. Staub Vice President, Regulatory Affairs and Quality Assurance

OPERATING GROUPS AND DIVISIONS


MEDSURG AND SPINE Timothy J. Scannell Group President Instruments James N. Heath President Medical Bradford L. Saar President Spine Spencer S. Stiles President Endoscopy William R. Enquist Global President Ascent Healthcare Solutions Ricardo M. Ferreira President ORTHOPAEDICS Michael P. Mogul Group President Osteosynthesis Vivian Masson President INTERNATIONAL Andrew Fox-Smith Group President Europe Laura Piccinini President Emerging Markets James L. Cunniff President Japan Xavier Berling President Canada David A. Murphy General Manager South Pacific Phillip S. Nicholl Managing Director BIOTECH James E. Kemler Group President NEUROVASCULAR Mark H. Paul President

Stryker Overview 2010-2011

Stryker Overview Summary of Results


As Reported
2010
Net Sales Net Earnings Diluted Net Earnings per Share $7,320 1,273 3.19

2009
$6,723 1,107 2.77

% Change
9 15 15

Adjusted Results
2010
Net Sales 1 Adjusted Net Earnings 2 Adjusted Diluted Net Earnings per Share Adjusted Return on Sales Adjusted Return on Average Equity $7,320 1,329 3.33 18% 19%

2009
$6,723 1,180 2.95 18% 20%

% Change
9 13 13

$ in millions (except per share amounts) 1. See page 5 for the reconciliation to adjusted net earnings from continuing operations. 2. See page 7 for the reconciliation to adjusted diluted net earnings per share from continuing operations.

Stryker Overview 2010-2011

Stryker Overview Net Sales


$ in Millions

8,000 7,500 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

7,320 6,718 6,001 5,147 4,609 4,017 3,402 2,810 2,421 6,723

2001

2002 16%

2003 21%

2004 18%

2005 15%

2006 12% 5,147

2007 17%

2008 12%

2009 --

2010 9%

Annual Growth Rate 13% Net Sales 2,421

2,810 3,402

4,017 4,609

6,001 6,718

6,723 7,320

Stryker Overview 2010-2011

Stryker Overview Net Earnings as Reported


$ in Millions

1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0
Annual Growth Rate Net Earnings as Reported 2001 21% 255 2002 29% 329 2003 32% 434 2004 1% 440 2005 46% 644 2006 21% 778 2007 31% 1,017 2008 13% 1,148 2009 (4%) 1,107
434 255 329 440 644 778 1,017 1,148 1,107

1,273

2010 15% 1,273

Stryker Overview 2010-2011

Stryker Overview
Adjusted Net Earnings from Continuing Operations*

$ in Millions

1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0
Annual Growth Rate Adjusted Net Earnings 2001 22% 257 2002 26% 325 2003 29% 419 2004 33% 559 2005 21% 676 2006 22% 824 2007 21% 999 2008 17% 1,170 2009 1% 1,180
257 325 419 559 676 824 999 1,170 1,180

1,329

2010 13% 1,329

* RECONCILIATION TO ADJUSTED NET EARNINGS FROM CONTINUING OPERATIONS ($ Millions)


2001 $255.2 2002 $328.5 2003 $434.4 2004 $440.0 2005 $643.6 2006 $777.7 2007 $1,017.4 2008 $1,147.8 2009 $1,107.4 2010 $1,273.4

Reported Net Earnings Adjustments (Net of Tax): Restructuring, Acquisition-Related, and Other Charges (Credits) Goodwill/Workforce Intangible Amortization Purchased In-Process Research & Development Income Taxes on Repatriation of Foreign Earnings Extraordinary Loss Intangible Asset Impairment Net Earnings and Gain on Sale of Discontinued Operations Impairment of property, plant & equipment Gain on sale of property, plant & equipment Subtotal Adjusted Net Earnings from Continuing Operations

0.4 11.0 4.8 (14.6) 1.6 $256.8

11.5 (15.2) (3.7) $324.8

(15.8) (15.8) $418.6

120.8 (2.0) 118.8 $558.8

15.9 27.4 (11.1) 32.2 $675.8

52.7 (6.3) 46.4 $824.1

12.7 (30.7) (18.0) $999.4

21.7 21.7 $1,169.5

5.5 67.1 72.6 $1,180.0

(7.4) 76.6 (13.4) 55.8 $1,329.2

Stryker Overview 2010-2011

Stryker Overview
Diluted Net Earnings per Share as Reported

$3.50 $3.25 $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00
Annual Growth Rate 2001 21% 2002 29% 0.81 2003 32% 1.07 2004 1% 1.08 2005 45% 1.57 2006 20% 1.89
1.07 0.63 0.81 1.08 1.89 1.57

3.19 2.78 2.44 2.77

2007 29% 2.44

2008 14% 2.78

2009 -2.77

2010 15% 3.19

Diluted Net EPS as Reported 0.63

Stryker Overview 2010-2011

Stryker Overview
Adjusted Diluted Net Earnings per Share from Continuing Operations*

$3.50 $3.25 $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00
Annual Growth Rate Adjusted Diluted Net EPS
2.00 1.65 1.37 1.03 0.63 0.80 2.40

3.33 2.95 2.83

2001 21% 0.63

2002 27% 0.80

2003 29% 1.03

2004 33% 1.37

2005 20% 1.65

2006 21% 2.00

2007 20% 2.40

2008 18% 2.83

2009 4% 2.95

2010 13% 3.33

* RECONCILIATION TO ADJUSTED DILUTED NET EARNINGS PER SHARE FROM CONTINUING OPERATIONS
2001 $0.63 0.03 0.01 (0.04) $0.63 2002 $0.81 0.03 (0.04) (0.01) $0.80 2003 $1.07 (0.04) (0.04) $1.03 2004 $1.08 0.29 0.29 $1.37 2005 $1.57 0.04 0.07 (0.03) 0.08 $1.65 2006 $1.89 0.13 (0.02) 0.11 $2.00 2007 $2.44 0.03 (0.07) (0.04) $2.40 2008 $2.78 0.05 0.05 $2.83 2009 $2.77 0.01 0.17 0.18 $2.95 2010 $3.19 (0.02) 0.19 (0.03) 0.14 $3.33

Reported Diluted Net Earnings per Share Adjustments (Net of Tax): Restructuring, Acquisition-Related and Other Charges (Credits) Goodwill/Workforce Intangible Amortization Purchased In-Process Research & Development Income Taxes on Repatriation of Foreign Earnings Extraordinary Loss Intangible Asset Impairment Net Earnings and Gain on Sale of Discontinued Operations Impairment of property, plant & equipment Gain on sale of property, plant & equipment Subtotal Adjusted Diluted Net Earnings per Share from Continuing Operations

Stryker Overview 2010-2011

Stryker Overview 2010 Product Portfolio Sales


Trauma and Craniomaxillofacial Spinal Other Reconstructive Ascent Hips

Orthopaedic Implants 59%

Medical Beds & Stretchers Knees Endoscopy

MedSurg Equipment 41%

Operating Room Equipment

MedSurg Products

Orthopaedic Implants

$ Millions
2010 $4,308 3,012 $7,320 2009 $4,120 2,603 $6,723 % Change 5% 16% 9% Constant Currency 3% 15% 8%

Orthopaedic Implants MedSurg Equipment Total

Stryker Overview 2010-2011

Stryker Overview
2010 Orthopaedic Implant Product Sales
Knees Other Reconstructive

Trauma and Craniomaxillofacial Hips

Spinal

59% of Total Company Sales


$ in Millions
$4,500 3,967 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0
Annual Growth Rate
Stryker Overview 2010-2011

4,308 4,120

3,587 3,123 2,850 2,556 2,192 1,798

1,537

2001 9% 1,537

2002 17% 1,798

2003 22% 2,192

2004 17% 2,556

2005 12% 2,850

2006 10% 3,123

2007 15% 3,587

2008 11% 3,967

2009 4% 4,120

2010 5% 4,308
9

Stryker Overview
2010 MedSurg Equipment Sales
Operating Room Equipment

Ascent

Medical Beds & Stretchers

Endoscopy

41% of Total Company Sales


$ in Millions
$3,500 3,012 $3,000 2,413 $2,500 2,024 $2,000 1,461 $1,500 884 $1,000 1,012 1,210 1,759 2,751 2,603

$500

$0
Annual Growth Rate MedSurg Sales

2001 20% 884

2002 14% 1,012

2003 20% 1,210

2004 21% 1,461

2005 20% 1,759

2006 15% 2,024

2007 19% 2,413

2008 14% 2,751

2009 (5%) 2,603

2010 16% 3,012


10

Stryker Overview 2010-2011

Stryker Overview
2010 Sales by Geography

United States

EMEA

Japan Canada & Latin America Pacific

United States: 65% International: 35%

$ Millions
2010 $4,793 2,527 $7,320 2009 $4,317 2,406 $6,723 % Change 11% 5% 9% Constant Currency 11% 2% 8%

United States International Total

Stryker Overview 2010-2011

11

2010-2011

The data set forth in this Market Segment Overview is derived, in part, from third party sources, including publicly reported information to the extent available. We are unable to independently verify the information that comes from third party sources. Moreover, the total market segment size and the market segment share of the companies included is necessarily based on estimates as many companies do not report the specific information identified by market segments as classified in this Market Segment Overview. The data presented is based on our definition of the market segments. Accordingly, while we believe that this data is representative, it is presented only to provide the reader with a broad overview and should not be relied on. Note: Numbers in this section may not add to totals due to rounding.

Stryker Overview 2010-2011

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Medical Technology Market Overview 2010 Worldwide Market


Top Medical Technology Companies ($ in Billions)*

Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.

Company J&J Siemens G.E. Medtronic Baxter Philips Covidien Abbott Cardinal Health Boston Scientific Becton Dickinson Stryker B. Braun St. Jude 3M Olympus Zimmer Toshiba Danaher Smith & Nephew Terumo Hospira CareFusion Synthes Beckman Coulter Alcon Fresenius C.R. Bard Biomet Varian Medical

Total Estimated Med Tech Sales 24.6 17.0 16.9 15.8 12.8 11.5 10.6 9.7 8.7 7.8 7.3 7.3 5.9 5.2 4.5 4.4 4.2 4.1 4.1 4.0 4.0 3.9 3.9 3.7 3.7 3.2 3.0 2.7 2.7 2.4

Total Estimated Company Sales 61.6 104.7 150.2 15.8 12.8 34.1 10.6 35.2 98.6 7.8 7.3 7.3 5.9 5.2 26.7 10.5 4.2 81.2 13.2 4.0 4.0 3.9 3.9 3.7 3.7 7.2 12.1 2.7 2.7 2.4

* All numbers have been converted to USD at the 2010 average exchange rate and are for the twelve month period ending December 31, 2010 Source: Capital IQ and company reports
Stryker Overview 2010-2011 13

Orthopaedic Market Segment Overview 2010 Worldwide Market by Product


Trauma and Craniomaxillofacial Orthobiologics

Operating Room Equipment Spinal

Arthroscopy

Other

Reconstructive Joint Replacement

Market Size Market Growth

$39.7 Billion 5%

Stryker participates in the blue shaded areas above.

Estimated ($ Billions)
Implants Spinal Devices Knees Trauma & Craniomaxillofacial Hips Orthobiologics Extremities & Bone Cement Subtotal Sales $7.2 6.9 6.2 5.6 4.5 1.2 $31.6 Percent of Market 18% 17% 16% 14% 11% 3% 80% Percent of Market 8% 8% 4% 20% 100% Growth Rate 1% 4% 8% 3% 10% 9% 5% Growth Rate 6% 8% 4% 6% 5%
14

Equipment & Other Operating Room Equipment Arthroscopy Other Subtotal Total Orthopaedic Market
Stryker Overview 2010-2011

Sales $3.4 3.1 1.6 $8.0 $39.7

Orthopaedic Market Segment Overview 2010 Worldwide Market by Company


J&J Zimmer Medtronic Stryker

Synthes

Smith & Nephew

Biomet Other

Market Size Market Growth

$39.7 Billion 5%

Estimated ($ Billions)
Company Stryker J&J Zimmer Medtronic Synthes Smith & Nephew Biomet Other Total Market
Stryker Overview 2010-2011

Total Sales $7.3 61.6 4.2 15.8 3.7 4.0 2.7 N/A N/A

Orthopaedic Sales $5.9 5.1 4.0 3.7 3.7 3.1 2.5 11.7 $39.7

Orthopaedic Market Share 15% 13% 10% 9% 9% 8% 6% 30% 100%

Orthopaedic Growth Rate 5% 4% 3% (2%) 8% 4% 5% 8% 5%


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Orthopaedic Implant Segment Overview 2010 Worldwide Reconstructive Market


Extremities & Bone Cement Hips

Knees

Market Size Market Growth Stryker Growth

$13.7 Billion 4% 4%

Stryker participates in the blue shaded areas above.

Estimated Market Share by Company


Zimmer J&J Stryker Biomet Smith & Nephew Other
0%
Stryker Overview 2010-2011

24% 22% 19% 12% 11% 12%


5% 10% 15% 20% 25% 30%
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Orthopaedic Implant Segment Overview 2010 Worldwide Spinal Market


Interbody Devices Thoracolumbar

Cervical

Vertebral Compression Fractures

Electrical Stimulation

Market Size Market Growth Stryker Growth

$7.2 Billion 1% 3%

Stryker participates in the blue shaded areas above.

Estimated Market Share by Company


Medtronic J&J Synthes Stryker Nuvasive Globus Zimmer Biomet Other
0%
Stryker Overview 2010-2011

35% 14% 13% 9% 7% 4% 3% 3% 11%


5% 10% 15% 20% 25% 30% 35% 40%
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Orthopaedic Implant Segment Overview


2010 Worldwide Trauma & Craniomaxillofacial

Upper Extremity

Hip Fracture

Foot & Ankle Lower Extremity CMF & Neuro

Market Size Market Growth Stryker Growth

$6.2 Billion 8% 7%

Stryker participates in the blue shaded areas above.

Estimated Market Share by Company


Synthes Stryker Smith & Nephew J&J Zimmer Biomet Other
0%
Stryker Overview 2010-2011

38% 16% 7% 5% 4% 4% 26%


5% 10% 15% 20% 25% 30% 35% 40%
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Orthopaedic Implant Segment Overview 2010 Worldwide Orthobiologics Market


Viscosupplementation Synthetics Blood Based & Ortho Stem Cells

Demineralized Bone Matrix

Allograft

Growth Factors Market Size Market Growth Stryker Growth $4.5 Billion 10% (11% )

Stryker participates in the blue shaded areas above.

Estimated Market Share by Company


Medtronic Genzyme Synthes Smith & Nephew J&J Osteotech Stryker Other
0%
Stryker Overview 2010-2011

19% 11% 7% 4% 3% 2% 2% 51%


10% 20% 30% 40% 50% 60%
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MedSurg Equipment Segment Overview


2010 Worldwide Operating Room Equipment
Navigation Surgical Equipment

Powered Instruments

Market Size Market Growth Stryker Growth

$3.4 Billion 6% 7%

Stryker participates in the blue shaded areas above.

Estimated Market Share by Company


Stryker Medtronic Zimmer Conmed J&J Covidien Other
0%
Stryker Overview 2010-2011

31% 10% 7% 4% 4% 3% 41%


5% 10% 15% 20% 25% 30% 35% 40% 45%
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MedSurg Equipment Segment Overview 2010 Worldwide Endoscopy Market


Laparoscopy Gastrointestinal

Urology

Open Surgery & Other Instrumentation Other Capital Equipment & Services ENT, Oncology, Gynecology, Flexible Scopes

Implants & Instruments

Visualization Other Arthroscopy OR Integration Market Size Market Growth Stryker Growth Rigid Scopes

$23.5 Billion 6% 7%

Stryker participates in the blue shaded areas above.

Estimated Market Share by Company


J&J Olympus Covidien Boston Scientific Stryker Smith & Nephew Karl Storz Other
0%
Stryker Overview 2010-2011

20% 17% 13% 7% 4% 4% 4% 32%


5% 10% 15% 20% 25% 30% 35%
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MedSurg Equipment Segment Overview


2010 North American Patient Handling Market
Patient Room

Furniture

EMS

Patient Handling Rental

Market Size Market Growth Stryker Growth

$2.0 Billion 11% 21%

Stryker participates in the blue shaded areas above.

Estimated Market Share by Company


Hill-Rom Stryker KCI FernoWashington Other
0% 5% 10% 15% 20%

42% 25% 9% 2% 22%


25% 30% 35% 40% 45%

Stryker Overview 2010-2011

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MedSurg Equipment Segment Overview


2010 U.S. Medical Device Reprocessing Market
$3.6B Market U.S. Disposable Device Market $31.5B
Devices that can be safely reprocessed
Other EP Catheters Compression Sleeves External Fixation Pulse Oximeter Sensors

Reprocessing device market potential of $1.8B (based on 50% of cost of new devices)

Not Addressed

Currently Addressed

Market Size Market Growth Key Market Players Stryker (Ascent) SterilMed Medisiss Hygia Health Services
Stryker Overview 2010-2011

$1.8 Billion 12%

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Neurovascular Segment Overview


2010 Worldwide Neurovascular Market
Embolic Coils

Aneurysm Stents

Ischemic Stents Remodeling Balloons Flow Diversion Devices Liquid Embolic Systems Support Devices Revascularization Devices

Market Size Market Growth Key Market Players Boston Scientific J&J (Micrus) Covidien (ev3) Terumo Penumbra Concentric

$1.0 Billion 9%

In Fiscal 2011, Stryker will participate in the blue shaded areas with the acquisition of Boston Scientific's Neurovascular Division.

Stryker Overview 2010-2011

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Stryker Overview 2010-2011

Joint Replacements Trauma, Extremities & Deformities Craniomaxillofacial Spine Biologics Surgical Products Neuro & ENT Interventional Spine Navigation Endoscopy Communications Patient Care & Handling Equipment EMS Equipment Medical Device Reprocessing & Remanufacturing Neurovascular

Stryker Overview 2010-2011