Biosurgicals

2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

7.8%

#1

~6%

~$3.4B

Strategic Initiatives

Build on hemostasis expertise to address

unmet needs in leaks and tissue healing
Selectively globalize, including strong growth
in Emerging Markets

Expand Depuy Synthes collaboration across

platforms and geographies

* Operational and includes BCS, TAH, AP

** Internal estimates

31

Energy
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

4.3%

#2

~5%

~$4.7B

Strategic Initiatives

Strengthen core offerings in HARMONIC and ENSEAL

through innovation focus on sealing, dissection, and
ease-of-use
Penetrate mid-value markets through a segmented
portfolio and sustainable solutions
Expand into new specialties such as hepatobiliary
and orthopaedics

* Operational
** Internal estimates

32

Endocutters
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

15.1%

#1***

~9%

~$3.6B

Strategic Initiatives

Deliver tissue-specific innovation that reduces patient

complications in the most challenging oncologic and
bariatric cases
Expand evidence generation and dissemination to
increase the penetration of obesity surgery
Increase penetration of minimally-invasive surgical
approaches by balancing device performance and cost

* Operational
** Internal estimates
*** Tied for #1 position with competitor

33

Wound Closure
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

1.6%

#1

~3%

~$4.3B

Strategic Initiatives

Elevate standard of care by leveraging evidence to drive

customer upgrades to the Plus Antibacterial Suture
Portfolio, STRATAFIX Knotless Tissue Control Devices,
and PRINEO Skin Closure System
Reduce variability and improve efficiency in minimallyinvasive procedures by automating laparoscopic suturing
Expand presence in orthopaedics through collaboration
with Depuy Synthes
* Operational
** Internal estimates

34

Hips
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

3.2%

#2

~2%

~$7.1B

Strategic Initiatives
Drive growth in CORAIL and PINNACLE Power Brands
Global expansion of the Anterior Approach
Launch of the ACTISTM Total Hip System in 2017
Deliver Enabling Technologies to improve outcomes
and reduce costs

* Operational
** Internal estimates

CORAIL Hip with

CERAMAX Ceramic Total Hip System
35

Knees
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

2.8%

#2

~3%

~$8.3B

Strategic Initiatives
Continued global expansion of ATTUNE Primary Knee
System (Brazil and China)
Capture and leverage evidence to demonstrate the
value of ATTUNE
Complete the ATTUNE Platform, including revision
Transform knee procedures for outcomes and cost to
serve via INTUITION SOLO
* Operational
** Internal estimates
Note: Knees includes TKA, excludes HA and Sports Emerging Technologies

ATTUNE Knee System

INTUITION SOLO
Instruments

36

Shoulders
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

4.9%

#2

~7%

~$1.6B

Strategic Initiatives

Enhance key growth drivers

DELTA XTEND Reverse Shoulder System
GLOBAL UNITE Platform Shoulder System
Launch GLOBAL ICON Stemless Shoulder OUS

* Operational
** Internal estimates
Note: also includes sales related to ankles, fingers, wrists and elbows

DELTA XTEND
Reverse Shoulder
System

37

Trauma
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

1.9%

#1

~4%

~$8.1B

Strategic Initiatives

Increase cadence of new product introductions and build

strong innovation platforms
Drive growth in core platforms with TFN-ADVANCED
Proximal Femoral Nail and introduction of anatomic
VA Locking Hand System

TFN-ADVANCED
Proximal Femoral Nailing
System

Offer a competitive, complete portfolio for the elective foot

market
Strengthen position in high growth geographies

Variable Angle (VA)

Locking Hand System

* Operational
** Internal estimates

38

Spine
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

(2.6)%

#2

~3%

~$10.2B

Strategic Initiatives

Strengthen Our Core

Close key portfolio gaps with targeted M&A
Upgrade our key platforms
Simplify our current portfolio (brand reduction)

Address The Aging Spine

Better diagnostics
Slow / halt / reverse
DDD

Less Invasive Surgery

Reduce the impact of surgery on patients
Improve clinical and cost outcomes
Normalize surgeon variation
Move to outpatient
* Operational
** Internal estimates

39

Sports Medicine
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

7.1%

#3

~5%

~$7.0B

Strategic Initiatives

Drive market leading growth with MONOVISC and

ORTHOVISC in the U.S.
Continue global launch of visualization tower
Deliver pipeline of innovation in minimally
invasive mobility therapies

* Operational
** Internal estimates

40

Neuro
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

0.5%

#2

~5%

~$3.4B

Strategic Initiatives

Continue growth in Neurosurgery through product launches in

hydrocephalus, cranial procedures and neuro critical care
(e.g. CERTAS Plus, DirectLink)
Accelerate growth in Neurovascular through product launches in
hemorrhagic and ischemic stroke (e.g. ENTERPRISE 2 VRD,
CODMAN SPECTRA family of coils, InNeuroCo intermediate
catheters and REVIVE SE thrombectomy device in Japan / China)
Expansion of partnership with AO Neuro collaboration in
neurosurgical education globally
* Operational
** Internal estimates, excludes Neuro Modulation

Codman ENTERPRISE 2
Vascular Reconstruction Device
41

Craniomaxillofacial (CMF)
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

0.7%

#1

~4%

$1.5B

Strategic Initiatives

Extend Market Leadership in Core Platforms

(Maxillofacial & Neuro)
Establish technology leadership in personalized
solutions TRUMATCH

Strengthen position in high growth Thoracic Market

Broaden global market access with OR-efficient, cost
effective portfolio

* Operational
** Internal estimates

TRUMATCH Patient-Specific Portfolio

42

Power Tools
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

5.2%

#3

~3%

~$1.7B

Strategic Initiatives

Collaborate across Medical Devices to

expand commercial channels and deliver greater value
to our customers
Accelerate the commercialization of new integrated
technologies to improve surgical procedure efficiency
Develop power solutions for target surgical procedures

* Operational
** Internal estimates

ANSPACH EG1 High

Speed Electric System

43

Breast Aesthetics
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

10.6%

#2

~3%

~$1.4B

Strategic Initiatives

Focusing on R&D programs and innovative solutions

for breast reconstruction to drive leadership in
breast surgery
Recent launch of latest generation expander platform
ARTOURA and ATHENA IDE trial providing unique
implant solutions for high BMI patients
Leveraging ability to meet wide range of plastic surgery
needs (e.g., implants, sutures)
* Operational
** Internal estimates

44

Ear, Nose, and Throat (ENT)

2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

(7.0)%

#2

4%

$1.1B

Strategic Initiatives

Focus on US market & accelerate innovation cadence

with multiple new product introductions to continue
leadership in BSP
Leveraging Navigation Platform capabilities from
Biosense Webster to bring most advanced navigation
system & consumables to ENT Drs & their patients
Capitalize on Surgical Navigation platform launch to
establish Acclarent as a broad ENT player across BSP
& FESS surgery
* Operational
** Internal estimates

45

Electrophysiology
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

12.5%

#1

~11%

~$5.5B

Strategic Initiatives
Continue CARTO 3 System penetration around the world with innovative
software enhancements including our Multi-Electrode Mapping,
CARTOUNIVU, PASO, VISITAG and CONFIDENSE Modules
Launch next generation ablation solutions to address safety, efficacy and
ease of use needs for AF and VT
Expand AF leadership beyond Paroxysmal AF to include persistent AF
indication in the US
Establish leadership position along the AF Care continuum and capitalize
on AF adjacent categories (example: Left Atrial Appendage Device
Coherex acquisition)
* Operational
** Internal estimates

46

Infection Prevention
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

3.1%

#1

~4%

$5.1B

Strategic Initiatives

Focus on core instrument processing segment: high-level

disinfection and sterilization
Set new standards in operational efficiency with next
generation high-level disinfection and sterilization
solutions (hardware and consumables)

* Operational, excludes divestitures

** Internal estimates

47

Reprocessing
2015
SALES CHANGE*

2015 WW
MARKET POSITION**

WW MARKET
2015-2020 CAGR**

TOTAL WW MARKET
REVENUE 2020**

4.3%

#2

~7%

~$0.5B

Strategic Initiatives
Accelerate revenue growth and drive market share gains
Focus on highest growing / highest value procedure and product markets
the Operating Room and the Electrophysiology and Cath Labs
Increase pipeline volume and velocity and speed to market after
OEM product introduction
Create pull-through strategies and collaboration opportunities
Close partnership with Johnson & Johnson Operating Companies to drive
customer value through increased focus on Certified Reprocessed Programs
New account acquisition / conversion and account penetration

* Operational, represents total Johnson & Johnson reprocessing growth, including Sterilmed and Johnson & Johnson affiliates
** Internal estimates

48

49