STRYKER

2016 FORM 10-K

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STRYKER CORPORATION 2016 Form 10-K Dollar amounts in millions except per share amounts or as otherwise specified. 10 Supplemental Net Sales Growth Information United States International United States International Percentage Change Percentage Change 2016 2015 As Reported Constant Currency As Reported As Reported Constant Currency 2015 2014 As Reported Constant Currency As Reported As Reported Constant Currency Orthopaedics: Knees $ 1,490 $ 1,403 6.2% 6.7% 6.8% 4.6% 6.5% $ 1,403 $ 1,396 0.5% 4.6% 4.9% (9.6 )% 3.9% Hips 1,283 1,263 1.5 2.3 2.0 0.8 2.9 1,263 1,291 (2.1) 3.1 6.3 (13.6 ) (1.1) Trauma and Extremities 1,364 1,291 5.7 5.7 9.1 0.4 0.4 1,291 1,230 4.9 10.8 16.1 (8.7 ) 4.4 Other 285 266 7.3 7.6 8.1 4.1 5.6 266 236 13.0 16.4 18.2 (5.0 ) 10.2 Total Orthopaedics $ 4,422 $ 4,223 4.7% 5.1% 6.2% 1.8% 3.1% $ 4,223 $ 4,153 1.7% 6.7% 9.2% (10.5 )% 2.5% MedSurg: Instruments $ 1,553 $ 1,466 5.9% 6.3% 7.2% 1.5% 3.1% $ 1,466 $ 1,424 2.9% 6.5% 7.2% (9.1 )% 4.5% Endoscopy 1,470 1,390 5.8 6.3 8.8 (3.1) (1.0) 1,390 1,382 0.5 3.9 5.3 (11.5 ) 0.4 Medical 1,633 823 98.4 99.9 94.9 114.0 122.1 823 766 7.5 10.4 9.2 0.5 15.1 Sustainability 238 216 9.9 9.9 9.8 33.3 37.6 216 209 3.4 3.5 3.5 (10.7 ) 3.3 Total MedSurg $ 4,894 $ 3,895 25.6% 26.3% 27.3% 19.6% 22.5% $ 3,895 $ 3,781 3.0% 6.2% 6.7% (8.6 )% 4.4% Neurotechnology and Spine: Neurotechnology $ 1,255 $ 1,088 15.4% 15.1% 14.5% 17.0% 16.2% $ 1,088 $ 1,001 8.6% 14.2% 15.6% (2.3 )% 11.9 % Spine 754 740 1.8 2.0 3.9 (4.1) (3.5) 740 740 0.2 3.2 6.6 (14.7 ) (4.7) Total Neurotechnology and Spine $ 2,009 $ 1,828 9.9% 9.8% 9.8% 9.9% 9.6% $ 1,828 $ 1,741 5.0% 9.5% 11.5% (6.8 )% 5.9% Total $11,325 $ 9,946 13.9% 14.3% 15.9% 8.8% 10.2% $ 9,946 $ 9,675 2.8% 7.0% 8.5% (9.2 )% 3.7% Consolidated Net Sales Consolidated net sales in 2016 increased 13.9% as reported and 14.3% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.4%. Excluding the 7.9% impact of acquisitions, net sales increased in constant currency by 7.8% from increased unit volume partially offset by 1.4% lower prices. The unit volume increase was primarily due to higher shipments of knees, instruments, endoscopy, neurotechnology, trauma and extremities and medical products. Consolidated net sales in 2015 increased 2.8% as reported and 7.0% in constant currency, as foreign currency exchange rates negatively impacted net sales by 4.2%. Excluding the 0.9% impact of acquisitions, net sales increased in constant currency by 7.6% from increased unit volume partially offset by 1.6% lower prices. The unit volume increase was led primarily by higher shipments of neurotechnology, trauma and extremities, medical and instruments products. Orthopaedics Net Sales Orthopaedics net sales in 2016 increased 4.7% as reported and 5.1% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.4%. Excluding the 0.3% impact of acquisitions, net sales increased in constant currency by 6.9% from increased unit volume partially offset by 2.1% lower prices. The unit volume increase was led primarily by higher shipments of knees and trauma and extremities products. Orthopaedics net sales in 2015 increased 1.7% as reported and 6.7% in constant currency, as foreign currency exchange rates negatively impacted net sales by 5.0%. Excluding the 0.5% impact of acquisitions, net sales increased in constant currency by 8.6% from increased unit volume partially offset by 2.4% lower prices. The unit volume increase was led primarily by higher shipments of trauma and extremities products. MedSurg Net Sales MedSurg net sales in 2016 increased 25.6% as reported and 26.3% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.7%. Excluding the 19.1% impact of acquisitions, net sales increased in constant currency by 7.8% from increased unit volume partially offset by 0.6% lower prices. The unit volume increase was led primarily by higher shipments of instruments, endoscopy and medical products. MedSurg net sales in 2015 increased 3.0% as reported and 6.2% in constant currency, as foreign currency exchange rates negatively impacted net sales by 3.2%. Excluding the 1.7% impact of acquisitions, net sales increased in constant currency by 4.8% from increased unit volume partially offset by 0.3% lower prices. The unit volume increase was led primarily by higher shipments of our medical and instrument products. Neurotechnology and Spine Net Sales Neurotechnology and Spine net sales in 2016 increased 9.9% as reported and 9.8% in constant currency, as foreign currency exchange rates positively impacted net sales by 0.1%. Excluding the 1.4% impact of acquisitions, net sales in constant currency increased by 9.8% from increased unit volume partially offset by 1.4% lower prices. The unit volume increase was led primarily by higher shipments of neurotechnology products. Neurotechnology and Spine net sales in 2015 increased 5.0% as reported and 9.5% in constant currency as foreign currency exchange negatively impacted net sales by 4.5%. Excluding the 0.1% impact of acquisitions, net sales increased in constant currency by 11.6% from increased unit volume and changes in product mix partially offset by 2.3% lower prices. The unit volume increase was led primarily by higher shipments of neurotechnology products. Gross Profit Gross profit in 2016 as a percentage of net sales decreased to 66.2% from 66.4% in 2015 as the benefit from the suspension of the medical device excise tax and favorable productivity was more than offset by unfavorable mix, including the impact of acquisitions and the unfavorable impact of foreign currency exchange. Gross profit as a percentage of net sales increased to 66.4% in 2015 from 65.7% in 2014, primarily due to product mix and the favorable impact of foreign currency exchange rates offset by decreases in the selling prices of our products. Percent Net Sales 2016 2015 2014 2016 2015 2014 Reported $ 7,495 $ 6,602 $ 6,356 66.2% 66.4% 65.7% Inventory stepped up to fair value 36 7 27 0.3 0.1 0.3 Restructuring- related charges 15 7 1 0.1 — — Adjusted $ 7,546 $ 6,616 $ 6,384 66.6% 66.5% 66.0%

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