9XEEE12 Mut8xemy 2

Leading Players
of the Global Medical

Technology Industry
Overview of Groups – SWOTs – Benchmarking
- Company Profiles and Financials
Publication date: February 2019
Analyst: Petra Frent
Report code: 9XEEE12
XERFI 13-15 rue de Calais, 75009 Paris, France Tel: +33 1 53 21 81 51 Fax: +33 1 42 81 42 14 E-mail: etudes@xerfi.com Website: www.xerfi.com (full catalogue)
Table of Contents
1. Overview 3
1.1. The Sector 4
1.2. Ranking 5
1.3. Performance analysis 6
2. Company Profiles 12
3. Sources 64
4. Annexes 66
Leading Players of the Global Medtech Industry – February 2019 2

1. Overview

1.1. The Sector Key Characteristics
The vast and fragmented €363bn medical technology industry…
The medical technology (medtech) was worth nearly €363bn in 2018. Geography-wise, mature
markets encompassed the lion’s share of sales: the US, Europe and Japan respectively accounted for
A large industry rooted in mature
43%, 29% and 7% of total market value in 2017. In mature markets, spending on medical technology
economies
makes up approx. 7% of total healthcare expenditure – the remainder is split between inpatient and
outpatient care (77%), and pharmaceuticals and other medical non-durable products (16%).
The industry is dominated by a handful of large, deep-pocketed companies which compete against a
myriad of small-scale, specialised players. In Europe, for instance, 95% of all medtech firms are SMEs.
The industry manufactures and markets four major categories of devices:
-imaging devices (in-vivo diagnostics): X-ray machines, CT scanners, MRI systems, ultrasounds, etc.
The industry is highly fragmented -non-imaging (in-vitro) diagnostics: blood pressure measuring equipment, tissue and molecular
tests, etc.
-therapeutic devices: orthopaedics, cardiovascular, ophthalmology, general surgery, neurological,
and urology
-surgery supplies : injection & puncture devices, tubes & catheters, patient monitoring systems, etc.
Broad in scope, the medical device industry is subject to constant technological and scientific
progress. The industry is being reshaped by data analytics and artificial intelligence, which are the
source of new value-added, end-to-end offerings. The number of new devices marketed has been on
the rise, as has the complexity of the approval process, which has become lengthier and costlier.
But consolidation continues
These factors, along with customer pressure to reduce healthcare costs, has enhanced consolidation:
niche players are being acquired by large companies, while a few large players have coalesced their
operations. Recent mega-mergers include Abbott/St. Jude Medical, Medtronic/Covidien,
Zimmer/Biomet, and Becton Dickinson/Bard.

1.2. Ranking Ranking by revenue
…is dominated by groups based in mature markets, especially in the USA

Overview of leading global medtech companies analysed
unit: 2018 revenues in billion euros
Name Country Revenues Main medtech activities
Medtronic 25.07 Cardiovascular, surgery, neurology and diabetes
Johnson & Johnson - Medical Devices 22.59 Vision, orthopaedics, surgery
Koninklijke Philips (Royal Philips) 18.12 In-vivo diagnostics, healthcare IT
GE Healthcare 16.56 In-vitro and in-vivo diagnostics, healthcare IT
Abbott Diagnostics, Cardiovascular &

15.79 In-vitro diagnostics, vascular and neurology
Neuromodulation
Siemens Healthineers 13.43 In-vitro and in-vivo diagnostics, healthcare IT
Becton, Dickinson and Company 13.38 Surgical devices, diagnostics, diabetes systems
Stryker Corporation 11.38 Orthopaedics, surgery supplies, neurology
Roche - Diagnostics 11.09 In-vitro diagnostics
Olympus - Medical 4.71 In-vivo diagnostics – endoscopy
Source: Xerfi Global with company reports

1.3. Performance Analysis Growth and profitability
Scale matters: leading players tend to be highly profitable

Key performance indicators and main growth drivers of leading global medtech companies analysed
units: billion euros, compound annual growth rate (CAGR) of sales in percentage, operating profit as a percentage of sales
2014-2018 2018 2014-18

COMPANY 2018 SALES SALES OPERATING AVERAGE OP. KEY GROWTH AND PROFITABILITY DRIVERS
TREND MARGIN MARGIN
•Medtronic’s FY2018 (ending April 27, 2018) revenue rose 0.8%

yoy, on a reported basis (+4.6% excluding the effect of divestitures,
acquisitions, and exchange rate translations, which made a positive
Medtronic 25.07 15.2% 22.2% 19.8% contribution – €450m – during the year).
•Diabetes and Coronary & Structural Heart were the fastest
growing businesses. Sales respectively increased 14.4% and 11.1%
on an annual basis.
•Johnson & Johnson’s Medical Devices’ revenue increased by a
slight 1.5% yoy in 2018, reflecting the disposal of its diabetes
Johnson &
business.
Johnson - Medical 22.59 -0.5% 20.3% 24.7% • On an organic basis, US medical revenue rose 1.0% and overseas
Devices* sales 2.6% yoy. The strongest growth came from the Interventional
(electrophysiology) and Vision (contact lenses) businesses.
•2018 marked a third consecutive year of lacklustre performance
for Philips.
•Sales increased 1.9% yoy, sustained by solid Diagnosis &
Koninklijke Philips Treatment performance but offset by contractions in the Personal
18.12 5.7% 7.2% 5.8% Health and HealthTech (healthcare IT) businesses.
(Royal Philips)
•Mature market demand was strong in Western Europe, while
growth geographies posted a mere 2.0% rise in annual revenue in
2018.
Key: colours related to average industry performance (green: above average; orange: within average; red: below average);
Source: Xerfi Global with companies’ reports
*2017 operating margin and 2014-2017 average operating margin

However, revenue growth (excluding the effects of M&A) has been sluggish
2014-2018 2018 2014-18

TREND MARGIN MARGIN
•Higher sales of services and equipment across the Healthcare

Systems division was supported by sales of imaging and
ultrasound devices in emerging markets (Americas, excl. the US
GE Healthcare 16.56 2.0% 18.7% 17.5% and Asia).
•The division’s margin improved by 0.6 points to reach 18.7% in
2018, a five-year high.
•The large-scale acquisitions of Alere (diagnostics) and global

Abbott contender St. Jude Medical (cardiovascular) have been the main
Diagnostics, growth engine of Abbott’s medtech business in recent years.
15.79 25.1% 26.3% 27.9% •In 2018, revenue in medtech-related businesses (Diagnostics,
Cardiovascular &
Neuromodulation* Cardiovascular & Neuromodulation) increased 18.3% yoy,
following a breathtaking 106.9% annual rise in 2017.
•Organic growth in Imaging and Advanced Therapies was blunt by

unfavourable currency effects. FY2018 (ending September 30,
Siemens 2018) revenue thus declined by 1.8% yoy.
13.43 3.5% 14.7% 15.1% •On a reported basis, regional growth was strongest in Europe,
Healthineers
C.I.S., Africa, and the Middle East (+1.6% yoy). Revenue contracted
in all other regions.
*2017 operating margin and 2014-2017 average operating margin

Smaller medtech groups have also seen strong results over the last 5 years
2014-2018 2018 2014-18

TREND MARGIN MARGIN
•2018 consolidated revenues rose significantly on a yearly basis,

fuelled by the €22.5bn acquisition of CR Bard (interventional
Becton, Dickinson
13.38 17.2% 9.4% 11.9% devices) .
and Company •US revenue thus rose 34.8% yoy, and International sales were up
29.1%.
•Stryker’s revenue increased 9.3% yoy in 2018, driven primarily by
Stryker organic developments (higher sales volume).
11.38 8.9% 18.7% 17.7% •Volume expanded particularly at Neurotechnology and Spine,
Corporation
where revenue rose 18.0% on an annual basis.
•Roche’s medtech division, which revolves around in-vitro
diagnostics (including in the area of diabetes), performed solidly in
Roche - 2018 and has recorded steady revenue expansion over the past
11.09 4.6% 4.8% 6.3% few years (2014-2018 CAGR: 4.6%).
Diagnostics
•After a 4.8% yoy fall in revenue in 2017, the Diabetes business
returned to growth in 2018 (+5.2% yoy).
•An 8.1% increase in annual revenue was underpinned by organic
growth and further bolstered by “relatively” small-scale
acquisitions.
Olympus - Medical 4.71 5.8% 19.8% 21.6% •The Surgical and Endotherapy sub-units saw double-digit sales
expansion. Performance at its other Medical division – Endoscopes
- was also solid (+5.7% yoy).

1.3. Performance Analysis SWOT
Alliances and acquisitions are the main means to add expertise…

SWOT analysis of leading global medtech companies analysed
COMPANY STRENGTHS WEAKNESSES AND RISKS MAIN STRATEGIC PRIORITIES
• Diversified medtech portfolio, further • Rely on innovation for long-term

strengthened by the Covidien deal • Policies to contain healthcare costs growth, supported by selective
• Presence in emerging markets across the globe acquisitions
Medtronic
(14.9% of revenue) • Revenue contraction in the US • Build on alliances to advance
• A leader in the cardiovascular market analytics and deliver digitally-powered
segment medical devices
• Diversified pharmaceutical and • Portfolio reshuffling: exit struggling

medical device portfolio • Steadily deteriorating operating businesses and divest low-growth
• Leading positions in large medtech margins over the past few years assets while adding expertise in growth
Johnson &
markets (contact lens, orthopaedics) • Slow revenue growth in medtech: domains
Johnson
• Robust cash position contraction in orthopaedics business • Focus growth resources on vision,
• Medical Devices sales in emerging revenue over the past two years orthopaedics, surgery tools and
markets: 20% of total division sales interventional solutions
• Partnerships and acquisitions to

• Diversified, globalised offerings support growth in end-to-end solutions
• Weak sales growth in recent years
• Integrated business model, covering across its medtech businesses
• Annual revenue contraction in North
Koninklijke equipment and healthcare IT • Develop steady revenue streams
America in 2018
Philips • Strengthened focus on medical through long-term healthcare IT and
• Slow expansion outside mature
technology with the disposal of equipment managed service contracts
economies
unrelated businesses with hospitals and clinics around the
world
Source: Xerfi Global

…especially as the sector is being reshaped by digital technologies

• Expand in-vitro diagnostics sales via

• Steadily rising revenue and • Uncertainty in the US and other the Roche partnership
profitability over the past three years mature economies due to tighter public • Accelerate the development of data-
GE Healthcare • Leading position in imaging devices healthcare spending driven solutions
and healthcare IT • Double-digit fall in annual revenue • Exit the current crisis and spin off GE
• Strong R&D pipeline at its Digital Healthcare division Healthcare
• GE Healthcare portfolio reshuffling
• Horizontal diversification in • Strengthen position in

• High (but gradually decreasing)
healthcare: medical devices, cardiovascular, neuromodulation,
leverage following the St. Jude
pharmaceuticals and consumer diabetes and diagnostics
Abbott acquisition
healthcare • Focus on growing the heart valve
• Price pressure in primary
• Leadership in the cardiovascular surgery portfolio and minimally invasive
cardiovascular segments
device market device offerings
• Leader in imaging and diagnostics

• Increase efficiency of the healthcare
• Revenue largely balanced across key
• High revenue exposure to Europe business following the IPO of Siemens
Siemens geographies
and the US – markets where healthcare Healthineers
Healthineers • Recurring revenues (reagents,
spending budgets are under pressure • Expand molecular diagnostics and
consumables and services) made up
healthcare IT offerings
over half of 2018 sales

Emerging market expansion offers medium/long term growth opportunities

• Acquisitions to widen portfolio;

• Strong presence in medication delivery
divestitures to optimise operations and
Becton, devices across a wide category of end • Marked decline in profitability and
strengthen financial health
Dickinson and uses weak financial performance over five
• Focus on integrating software into its
Company • Acquisitions of CareFusion and Bard years
medication management solutions
add significant scale
• Enhance operating efficiency
• Major global player in all of its core
• Bolt-on acquisitions to boost growth
markets (orthopaedics, surgery) • Product recalls (ABGII Modular-Neck
Stryker in core segments
• Improving revenue and profitability hip stem, Sage oral care) result in charges
Corporation across all geographies and business and impact brand reputation
• Accelerate international expansion
efforts
divisions over the past two years
• Leadership in in-vitro diagnostics • Further expand the Diagnostics
• Complementarity of its diagnostics portfolio
and pharmaceutical businesses for • Weak profitability levels over 2017- • Diversify digitally-powered solutions
Roche
personalised cancer treatment 2018 compared to previous years across its diagnostics equipment portfolio
• Double-digit growth in the Asia-Pacific • Leverage diagnostics expertise for
in 2018 personalised cancer treatment
•Global leader in endoscopy devices •Become a “global medical technology
•At group level, declining sales and
•Geographically balanced presence company”
profitability in digital cameras have
Olympus •19% of’ medical sales in the last fiscal •Operational reshuffling to boost
weighed down on solid growth and
year (ending March 31, 2018) were efficiency
stable, high-margins in medtech
generated in emerging markets •Boost investments in emerging markets

2. Company Profiles

2.1. Medtronic Presentation
Medtronic PLC
Reporting segments:
Aortic & Respiratory, Restorative

Cardiac Rhythm Coronary & Surgical
Peripheral Gastrointestinal, Therapies Diabetes Group
& Heart Failure Structural Heart Innovations
Vascular & Renal Group 7.1%
19.9% of sales 11.9% 18.5%
6.2% 10.6% 25.9%
Headquarters
Dublin, Ireland
• Medtronic was founded in 1949. The group designs and markets medical
devices for hospitals and clinics as well as home care.
2018 key figures • Medtronic was catapulted to the forefront of the global medtech
Consolidated sales €25.07bn industry in 2015 when it paid €40bn for Covidien, a manufacturer of
surgical solutions and vascular therapies. The acquisition allowed
Operating margin 22.2% Medtronic to enhance its offerings in the neurovascular and surgical
Capex ratio 3.6% fields.
• Medtronic’s operations are centred around four business units: the
2018 revenue by region Cardiac and Vascular Group (which includes the Cardiac Rhythm & Heart
Failure, the Coronary & Structural Heart, and the Aortic & Peripheral
US 53.0% Vascular sub-units), the Minimally Invasive Therapies Group (comprising
Emerging Markets 14.9% the Surgical Innovations and the Respiratory, Gastrointestinal & Renal
sub-groups), the Restorative Therapies Group and the Diabetes Group.
Non-US Developed Markets 32.1%

2.1. Medtronic Corporate strategies and recent events
Strategic focuses
Medtronic is looking to foster long-term growth thanks to disruptive and incremental innovation (in-
house or in partnership) across its four main business divisions. In line with this strategy, the group
continues to bring to market novel technologies. Recently approved devices include:
- the Micra, the world’s smallest pacemaker, and the Valiant Navion thoracic stent graft system (Cardiac
Rely on innovation and Vascular);
for long-term - the Signia stapling and Ligasure vessel sealing systems (Minimally Invasive Therapies);
growth - OptiSphere embolization spheres for hypervascular tumors treatment, the Intellis spinal cord
stimulation system, and the Occipitocervical-Upper Thoracic system for posterior cervical spine surgery
(Restorative Therapies);
- the smart Sugar.IQ diabetes management system and associated app developed with IBM Watson for
glucose level monitoring.
While product innovation is at the centre of Medtronic’s growth efforts, especially following the large-
scale acquisition of Covidien, Medtronic continues to make bolt-on purchases to diversify its know-how in
Targeted
key areas. Notable targets are Mazor Robotics, a company developing robotic-assisted spine
acquisitions to
technologies, and Nutrino, a provider of diabetes nutrition-related data and analytics services. The
strengthen core
Nutrino acquisition is in line with Medtronic’s roadmap to build a comprehensive diabetes management
portfolio, which recognises food and nutrition as “central components in effective diabetes management”.
Recent events
Medtronic purchases Israel-based Mazor Robotics in a transaction worth €1.5bn, thereby enhancing its spine
December 2018
surgery offerings (implants, navigation, and 3D imaging) with robotic-assisted surgery systems.
Medtronic and IBM’s Watson Health expand the features of their jointly developed Sugar.IQ diabetes assistant
January 2019 app with the launch of Iqcast, an artificial intelligence-powered functionality that can help forecast the probability
of a low glucose event within an upcoming 1 to 4 hour time frame.

2.1. Medtronic Financial indicators
Consolidated net revenues Consolidated operating income and margin

units: billion euros, annual change in % units: billion euros, percentage ratio between operating income and sales
30 50% 6 5,57 25%

24,86 25,07
24,13 40% 4,49 4,46
25
20%
30% 4
20 3,19 3,15
16,96
20% 15%
14,23
15
10% 2
10%
10 0%
5 -10% 0 5%
14 15 16 17 18 14 15 16 17 18
Sales by segment Sales by region

units: billion euros; percentage share of total net revenues units: billion euros; percentage share of total net revenues
Cardiac Rhythm & Heart

Failure 1,79
7,1% 4,98 3,72
Coronary & Structural
19,9% 14,9%
Heart
US
Aortic & Peripheral 6,48
Vascular 25,9%
Surgical Innovations 2,98 Non-US Developed
13,29
11,9% Markets
53,0%
Respiratory, 8,06
1,54 Emerging Markets
Gastrointestinal, & Renal 32,1%
2,66
6,2%
Restorative Therapies 10,6%
Group 4,63
18,5%
Diabetes Group
Source: company information

2.1. Medtronic Statistical tables
Consolidated net Consolidated Consolidated

Year Annual % change Net income Net margin
sales operating income operating margin
2014 14.23 n/a 3.19 22.4% 2.56 18.0%
2015 16.96 19.1% 3.15 18.6% 2.24 13.2%
2016 24.13 42.3% 4.49 18.6% 2.96 12.3%
2017 24.86 3.0% 4.46 17.9% 3.37 13.6%
2018 25.07 0.8% 5.57 22.2% 2.60 10.4%
units: billion euros; % change; operating income and net income as % of sales

2017-2018 2016-2017
Segment 2018 sales % of total 2017 sales 2017 % share 2016 sales
change change
Cardiac Rhythm & Heart

4.98 19.9% 4.73 19.0% 5.3% 4.57 3.4%
Failure
Coronary & Structural

2.98 11.9% 2.61 10.5% 14.4% 2.59 0.6%
Heart
Aortic & Peripheral

1.54 6.2% 1.45 5.8% 6.3% 1.37 6.0%
Vascular
Surgical Innovations 4.63 18.5% 4.31 17.3% 7.6% 4.06 6.1%
Respiratory,
2.66 10.6% 4.00 16.1% -33.4% 3.94 1.3%
Gastrointestinal, & Renal
Restorative Therapies
6.48 25.9% 6.16 24.8% 5.1% 6.03 2.2%
Group
Diabetes Group 1.79 7.1% 1.61 6.5% 11.1% 1.56 3.4%
units: billion euros; % share; % change

2017-2018 2016-2017
Region 2018 sales % of total 2017 sales 2017 % share 2016 sales
change change
US 13.29 53.0% 13.94 56.1% -4.7% 13.74 1.5%
Non-US Developed
8.06 32.1% 7.60 30.6% 6.0% 7.29 4.3%
Markets
Emerging Markets 3.72 14.9% 3.32 13.3% 12.3% 3.10 7.0%

2.2. Johnson & Johnson - Medical Devices Presentation
Johnson & Johnson - Medical Devices
Reporting segments:
Interventional
Surgery Orthopaedics Vision Care Diabetes Care
Solutions
36.7% of sales 32.9% 16.9% 3.7%
9.8%
Headquarters • The company was founded in 1886 and is among the world’s leading
providers of healthcare solutions. Outside medical technology, Johnson
New Jersey, USA & Johnson is a leading global player in pharmaceuticals.
• In the medical device arena, Johnson & Johnson operations cover a
2018 Medical Devices key figures number of large markets. Orthopaedics focuses on trauma, hip, spine,
knees, sports & shoulders. Surgery is engaged in businesses such as
Medical Devices sales €23.90bn
wound closure, energy, biosurgery, and endomechanical instruments.
Operating margin (2017) 20.3% Interventional Solutions covers electrophysiology devices. Eye Health
Capex ratio (2017) 5.9% comprises contact lenses and eye surgery tools.
• Johnson & Johnson continues to position itself in high-growth, attractive
markets while exiting non-core ones. Over the past few years, it has
2018 Medical Devices revenue by region
offloaded its ortho-clinical diagnostics activities (annual sales of €1.3bn),
International 52.4% the LifeScan diabetes equipment business (blood glucose monitoring
US 47.6% and insulin pumps; annual sales topping €1bn) and its Advanced
Sterilization Products assets (€700m in annual revenue). Conversely, it has
strengthened its Vision Care operations with the €4bn purchase of
Abbott Medical Optics and its robotic surgery portfolio with the
Orthotaxy acquisition.

2.2. Johnson & Johnson - Medical Devices Corporate strategies and recent events
Strategic focuses
In order to support future growth, Johnson & Johnson has been optimising its medtech portfolio by
exiting slower growth businesses (Cordis – vascular devices, neurosurgery, diabetes). It has also reinforced
Portfolio its position in core segments by making acquisitions (30+ deals worth around €4.5bn in 2017 and a
optimisation… dozen transactions for a total of €450m in 2018) in high growth fields (e.g. ischemic stroke market,
minimally invasive surgery, surgical robotics, digitally-powered solutions) and emerging areas (shoulder
soft tissue repair, dry eye, etc.).
Inorganic initiatives and in-house R&D will be leveraged to launch 20 to 25 new major devices in 2019 (as
opposed to about 20 in 2018). All in all, Johnson & Johnson will continue to tap opportunities in its core
markets, namely:
…to channel - orthopaedics (a global market worth over €40bn annually, with a 2017-2022 CAGR of 3%;
resources into - surgery (a €20bn per year global market, with expected 2017-2022 CAGR of about 6%;
attractive markets - interventional solutions (specifically electrophysiology, a €5bn annual market, estimated to grow at
approx. 11% over 2017-2022);
- eye health (a market exceeding €16bn per annum that is projected to expand 5% annually on average
through 2022).
Recent events
Johnson & Johnson Medical Devices launches SENTIO MMG, a digital solution which evaluates nerve “status” in
September 2018
order to detect and circumvent peripheral nerves during spine surgery.
Johnson & Johnson finalises the disposal of its LifeScan diabetes (blood glucose monitoring) business to Platinum
October 2018
Equity for close to €2 billion. LifeScan’s net revenues totalled €1.3 billion in 2017.

2.2. Johnson & Johnson - Medical Devices Financial indicators
Medical Devices net revenues Medical Devices operating income and margin
24 8% 8 30%
6,66
23,03 4% 5,71
23 22,59 6
22,25 4,67 4,51 25%
0%
22 4
-4%
21,04 21,02 20%
21 2
-8%
20 -12% 0 15%
14 15 16 17 18 14 15 16 17

0,84
Surgery
2,21 3,7%
9,8%
Orthopaedics
8,29
3,81 36,7%
Vision Care 16,9% US 10,74
11,85 47,6%
International 52,4%
Interventional
Solutions
Diabetes Care 7,44
32,9%

2.2. Johnson & Johnson - Medical Devices Statistical tables
Medical Devices Medical Devices Medical Devices

Year Annual % change
net sales operating income operating margin
2014 23.03 n/a 6.66 28.9%
2015 21.04 -8.7% 5.71 27.2%
2016 21.02 -0.1% 4.67 22.2%
2017 22.25 5.9% 4.51 20.3%
2018 22.59 1.5% n/a n/a
2017-2018 2016-2017
change change
Surgery 8.29 36.7% 8.00 35.7% 3.6% 7.78 2.8%
Orthopaedics 7.44 32.9% 7.75 34.6% -4.0% 7.81 -0.8%
Vision Care 3.81 16.9% 3.40 15.2% 12.1% 2.33 45.9%
Interventional Solutions 2.21 9.8% 1.92 8.6% 15.2% n/a n/a
Diabetes Care 0.84 3.7% 1.35 6.0% -37.5% 1.50 -9.7%

2.2. Johnson & Johnson - Medical Devices Statistical tables
2017-2018 2016-2017
change change
US 10.74 47.6% 10.73 48.2% 0.1% 10.27 4.5%
International 11.85 52.4% 11.52 51.8% 2.8% 10.76 7.1%

2.3. Philips Presentation
Koninklijke Philips N.V. - Royal Philips
Reporting segments:
Diagnosis & Connected Care &

Personal Health HealthTech Other
Treatment Health Informatics
39.9% of sales 3.1%
40.0% 17.0%
Headquarters • Created in 1891, Royal Philips is a healthcare-focused company with

operations in Personal Health (baby care, oral care, pain relief, male
Amsterdam, Netherlands
grooming, domestic appliances, sleep & respiratory care), Diagnosis &
Treatment (in-vivo diagnostic imaging equipment), Connected Care &
Health Informatics, and HealthTech Other.
2018 key figures
• Over the past few years, Philips has considerably trimmed its operations
Consolidated sales €18.12bn (exited TVs, entertainment devices and lighting) transforming from a
Operating margin 7.2% sprawling conglomerate into a health- and personal care-focused
company.
Capex ratio 2.3%
• As of January 1, 2019, Philips has reshuffled its four operating segments
2018 revenue by region into three businesses. The Diagnosis & Treatment unit encompasses the
imaging, ultrasound, and health IT operations. Connected Care will focus
Western Europe 22.0% on analytics and healthcare workflow solutions and consist of Monitoring
Other mature geographies 10.0% & Analytics, Therapeutic Care, Population Health Management, and
Sleep & Respiratory Care (including Home Respiratory Care). Finally, a
North America 35.0%
third division, Personal Health, will encompass Personal Care, Domestic
Growth geographies 33.0% Appliances, Oral Healthcare, and Mother & Child Care.

2.3. Philips Corporate strategies and recent events
Strategic focuses
In line with technology shifts, Philips is developing new automation and digital technologies in order to
release new integrated product and software solutions (e.g. Philips Illumeo, the AI-based IntelliSpace
Leverage new Discovery 3.0 for radiology, the PerformanceBridge for operational management, etc.) across key
technologies to medtech areas. The effort is being bolstered by acquisitions (Xhale, EPD Solutions) and an extensive and
expand offerings growing network of partnerships, which includes deals with tech players such as Samsung and healthcare
peers such as Allm (a Japan-based healthcare IT group), Alcon (the eye care division of Novartis), Integron
(IoT services), etc.
Philips is looking to become a reference in the provision of end-to-end medtech solutions (connected
medical equipment, tele-health devices, and related software and consulting services) for healthcare
providers. Under the “enterprise managed services” and “managed equipment services” models, Philips is
Expand long-term
seeking to multiply long-term partnerships with hospitals across the globe. Recent examples include
contracts in clinical
contracts awarded by the New York-Presbyterian Hospital and the Jackson Health System (10+ year deals
settings
to provide health IT based on the IntelliSpace Enterprise Edition) in the US, two long-term deals in
Germany and one in Saudi Arabia. In September 2018, Philips clinched its first managed equipment
solutions contract (covering a 20-year period) in the Asia-Pacific region, specifically in Australia.
Recent events
Philips reinforces its health IT capabilities by purchasing Xhale Assurance, a US-based medical start-up engaged in
August 2018
the development of “next-generation sensor technologies”.
Royal Philips is to inaugurate a new R&D hub focused on computed tomography and advanced molecular
November 2018
imaging in Cleveland, Ohio, USA, at the beginning of 2019.
January 2019 Philips teams up with MIM Software to develop smart solutions in the area of radiation therapy.

2.3. Philips Financial indicators

20 18,12 20% 1,6 1,46 10%

17,42 17,78
16,81 1,31
16 14,52 16% 8%
1,2
1,03
12 12% 6%
0,8 0,66
8 8% 4%
0,46
0,4
4 4% 2%
0 0% 0,0 0%
14 15 16 17 18 14 15 16 17 18

0,56
3,1%
Personal Health 3,08 3,99
Western Europe
17,0% 22,0%
5,98
Diagnosis & Treatment 7,23 33,0%
39,9% North America
Connected Care & Other mature

Health Informatics geographies
HealthTech Other Growth geographies
7,25 1,81 6,34
40,0% 10,0% 35,0%

2.3. Philips Statistical tables

2014 14.52 n/a 0.46 3.2% 0.41 2.8%
2015 16.81 15.8% 0.66 3.9% 0.64 3.8%
2016 17.42 3.7% 1.46 8.4% 1.49 8.6%
2017 17.78 2.1% 1.03 5.8% 1.87 10.5%
2018 18.12 1.9% 1.31 7.2% 1.10 6.1%
Segment 2017-2018 2016-2017

margin (%) change change
Personal Health 7.23 39.9% 14.5% 7.31 41.1% -1.1% 7.10 3.0%
Diagnosis &
7.25 40.0% 8.3% 6.89 38.8% 5.1% 6.69 3.1%
Treatment
Connected Care &

3.08 17.0% 5.8% 3.16 17.8% -2.5% 3.16 0.2%
Health Informatics
HealthTech Other 0.56 3.1% -18.6% 0.42 2.3% 35.9% 0.48 -13.2%
units: billion euros; % share; operating income as % of sales; % change

2.3. Philips Statistical tables
2017-2018 2016-2017
change change
Western Europe 3.99 22.0% 3.80 21.4% 4.9% 3.76 1.2%
North America 6.34 35.0% 6.41 36.0% -1.0% 6.28 2.1%
Other mature
1.81 10.0% 1.71 9.6% 6.2% 1.79 -4.7%
geographies
Growth geographies 5.98 33.0% 5.86 33.0% 2.0% 5.60 4.8%

2.4. GE Healthcare Presentation
GE Healthcare
Reporting segments:
Healthcare Systems Healthcare Digital Life Sciences

70.0% of sales 6.0% 24.0%
Headquarters
Chicago, IL, USA • GE Healthcare is part of GE, a highly diversified technology and financial
services conglomerate.
• GE Healthcare is a leading provider of medical imaging and diagnostics
2018 GE Healthcare key figures devices and has a strong position in healthcare IT.
GE Healthcare sales €16.56bn
• Healthcare Systems comprises primarily diagnostic imaging equipment
Operating margin 18.7% (X-ray, CT, molecular imaging, etc.). Life Sciences (in-vitro diagnostics)
Capex ratio (2017) 2.0% delivers equipment for drug discovery, biopharma, and gene sequencing.
Healthcare Digital develops software, analytics, and other IT-based
technologies meant to enhance healthcare efficiency.
2017 GE Healthcare revenue by region
• In line with the company’s plan to transform its operations following a
US 44.8% Europe 19.8% series of financial issues, including major losses in its power business, GE
is expected to spin off its healthcare division in 2019. In preparation for
Asia 25.5% Americas 5.2%
the planned healthcare IPO, GE Healthcare is rationalising its portfolio
Middle East and selling off non-core assets.
4.7%
and Africa

2.4. GE Healthcare Corporate strategies and recent events
Strategic focuses
Over the past two years during, during which time the company has changed two chief executives,
problems have piled up at GE: it has cut dividends; it has had to cover €13.5bn in legacy insurance
liabilities; and it has been subject to investigations by the US Department of Justice into its accounting
Exit the current practices. At the latest annual investor meeting, which took place on January 31, 2019, the group
crisis and spin off reiterated that it was on course to execute and enhance the sweeping measures announced in Nov. 2017,
GE Healthcare which include the spin off of a minority stake in its healthcare division over the course of 2019. In
preparation for the planned healthcare IPO, GE Healthcare has been restructuring the division’s portfolio
by selling off non-core assets (the €900m disposal of GE Healthcare’s Ambulatory Care and Workforce
Management Software units to Veritas Capital was announced in 2018).
A milestone partnership with Roche Diagnostics to develop software solutions aimed at integrating in-
Accelerate
vivo and in-vitro diagnostic data, which will bank on Roche’s and GE’s sprawling installed base, was
development of
announced in 2018. This highlights the growing importance GE attaches to leveraging data to deliver
digitally infused
solutions that can help improve healthcare outcomes. While multiplying its digital alliances (e.g. with the
integrated
European Society of Radiology) to bolster its healthcare IT offerings (based on its Predix cloud platform),
solutions
GE has continued to make upgrades across its entire spectrum of medtech apparatuses.
Recent events
GE Healthcare unveils an upgraded version of the Invenia ABUS (Automated Breast Ultrasound) – the Invenia
October 2018
ABUS 2.0 device for breast cancer screening.
GE Healthcare teams up with the Vanderbilt University Medical Center to leverage data, genomics, PET (positron-
January 2019 emission tomography) imaging and cellular analysis expertise to jointly develop AI-powered solutions that
measure the efficiency and accelerate the deployment of cancer immunotherapies.

2.4. GE Healthcare Financial indicators
GE Healthcare net revenues GE Healthcare operating income and margin

17 6% 4 19%
16,56
4% 3,09
15,91 2,89
16 3 2,65 18%
2,55
15,31 15,29 2% 2,41
15 14,76 0% 2 17%
-2%
14 1 16%
-4%
13 -6% 0 15%
14 15 16 17 18 14 15 16 17 18
Sales by segment* Sales by region*

0,75
4,7%
0,84
3,84
5,2%
24,0%
US
Healthcare Systems Europe 4,10 7,20
Healthcare Digital 0,96 Asia 25,5% 44,8%
Life Sciences 6,0%
Americas
11,19
70,0% Middle East and Africa
3,18
19,8%
Source: company information; *latest available data: 2017

2.4. GE Healthcare Statistical tables
GE Healthcare operating GE Healthcare

Year GE Healthcare net sales Annual % change
income operating margin
2014 15.31 n/a 2.55 16.7%
2015 14.76 -3.6% 2.41 16.3%
2016 15.29 3.6% 2.65 17.3%
2017 15.91 4.1% 2.89 18.1%
2018 16.56 4.0% 3.09 18.7%
Segment 2017 sales % of total 2016 sales 2016 % share 2016-2017 change
Healthcare Systems 11.19 70.0% 10.71 70.0% 4.5%
Healthcare Digital 0.96 6.0% 1.07 7.0% -10.4%
Life Sciences 3.84 24.0% 3.52 23.0% 9.0%

2.4. GE Healthcare Statistical tables
Region 2017 sales % of total 2016 sales 2016 % share 2016-2017 change
US 7.20 44.8% 7.11 46.2% 1.2%
Europe 3.18 19.8% 3.01 19.6% 5.6%
Asia 4.10 25.5% 3.77 24.5% 8.9%
Americas 0.84 5.2% 0.75 4.9% 11.1%
Middle East and Africa 0.75 4.7% 0.75 4.9% 0.0%

2.5. Abbott Presentation
Abbott
Reporting segments:
Established
Nutrition Diagnostics Medical Devices
Pharmaceuticals
23.7% 24.6% 37.3%
14.5% of sales
Headquarters
• Founded in 1888, Abbott Laboratories conducts operations across a
Illinois, USA variety of healthcare sectors.
• Outside the medtech industry, Abbott is engaged in Nutrition (paediatric
2018 key figures and adult nutrition brands such as Similac and Glucerna) and sells
branded generic pharmaceuticals (Established Pharmaceuticals) in
Consolidated sales €27.07bn
emerging markets such as India, Brazil, Russia and China.
Operating margin 11.9%
• Its medtech activities comprise Medical Devices (electrophysiology –
Capex ratio (2017) 4.1% cardiac mapping, catheters; heart valves for structural heart conditions;
glucose monitoring systems for diabetes care) and Diagnostics
(laboratory instruments such as the Alinity line-up; molecular diagnostics
2018 revenue by region with a focus on infectious disease testing; and point of care diagnostics).
U.S. 35.4%
• Over the past few years, Abbott has reshaped its medtech portfolio by
International 64.6% disposing of non-core assets and acquiring Alere (€4bn), a diagnostics
device maker, and medtech peer St. Jude Medical (€20bn), which
significantly enlarged its footprint in cardiovascular devices.

2.5. Abbott Corporate strategies and recent events
Strategic focuses
Following a couple of large-scale acquisitions in 2016-17, Abbott is focusing on delivering innovation to
round out its portfolio and sustain healthy returns on investment. In the medtech field, it aims to advance
Innovation to and expand its portfolio in the following areas: heart valve surgery, privileging minimally invasive devices;
sustain organic diabetes care, by focusing on glucose monitoring systems; and its diagnostics offerings, especially in-vitro
growth and infectious diseases therapy categories. In 2018-19, Abbott received US FDA approval for the
“TactiCath Contact Force” ablation catheter, the “FreeStyle Libre 14 day Flash Glucose” monitoring system,
and the MitraClip leaky heart valve device, among others.
Since 2015, Abbott has added significant capabilities in the mitral heart valve segment – a high-growth
market – via the acquisitions of Tendyne Holdings and Cephea Valve Technologies. Both groups are
focused on minimally invasive procedures. In addition, the buyout of St. Jude Medical in 2017 has
Focus on structural enhanced the company's expertise and offerings in heart diseases, while the acquisition of Alere saw
heart conditions revenue in the Diagnostics division rise 33.5% yoy in 2018. At the same time, in order to channel
resources to promising areas and use cash flows to pay down debt and increase dividends, Abbott has
parted company with non-profitable businesses such as Abbott Medical Optics, St. Jude Medical vascular
closure, and parts of the US adult nutrition business.
Recent events
Abbott receives regulatory clearance in the US for the Amplatzer Piccolo™ Occluder, “the world's first” minimally-
January 2019
invasive implantable device designed to treat patent ductus arteriosus in premature babies or newborns.
Abbott acquires Cephea Valve Technologies, a group engaged in the development of minimally-invasive devices
January 2019 to replace the mitral valve in patients affected by mitral valve conditions without the need for open-heart surgery.
Mitral valve disease is the most widespread heart valve dysfunction: in the US, it concerns over 4m people.

2.5. Abbott Financial indicators

30 27,07 40% 4 15%

24,25 3,23
25 30% 12%
3
20 17,92 18,06 18,46
2,31
20% 9%
15 2
1,52
10% 1,38 6%
10 0,94
1
5 0% 3%
0 -10% 0 0%
14 15 16 17 18 14 15 16 17 18

3,91
Established 14,5%
Pharmaceuticals
10,06 9,59
Nutrition 37,3% 35,4%
U.S.
6,40
Diagnostics 23,7% International
17,47
Medical Devices 64,6%
6,63
24,6%

2.5. Abbott Statistical tables

2014 17.92 n/a 1.52 8.5% 2.02 11.3%
2015 18.06 0.8% 2.31 12.8% 3.92 21.7%
2016 18.46 2.2% 0.94 5.1% 1.24 6.7%
2017 24.25 31.3% 1.38 5.7% 0.42 1.7%
2018 27.07 11.6% 3.23 11.9% 2.10 7.7%
Established Pharmaceuticals 3.91 14.5% 3.79 15.8% 3.1%
Nutrition 6.40 23.7% 6.13 25.5% 4.4%
Diagnostics 6.63 24.6% 4.97 20.7% 33.5%
Medical Devices 10.06 37.3% 9.14 38.0% 10.1%

2.5. Abbott Statistical tables
U.S. 9.59 35.4% 8.56 35.3% 12.1%
International 17.47 64.6% 15.68 64.7% 11.4%

2.6. Siemens Healthineers Presentation
Siemens Healthineers
Reporting segments:
Imaging Diagnostics Advanced Therapies

59.2% of sales 29.8% 11.0%
Headquarters
• Siemens Healthineers was spun off from the diversified industrial
Münich, Germany
conglomerate Siemens Group in December 2017. In March 2018, 15% of
its shares were floated on the Frankfurt Stock Exchange. At present, the
2018 key figures
Siemens Group retains an 85% stake in Siemens Healthineers.
Consolidated sales €13.43bn • Siemens Healthineers focuses on three core areas: imaging (magnetic
resonance, computed tomography, X-ray systems, etc.), diagnostics
Operating margin 14.7% (laboratory, molecular and point-of-care diagnostics) and advanced
Capex ratio 3.9% therapies (image-guided therapy), a market being shaped by minimally
invasive procedures. Siemens Healthineers estimates its core markets,
worth over €50 billion per year, will grow at an annual pace of 3-5%
2018 revenue by region through 2021.
Europe, C.I.S., Africa, Middle • Its medical equipment and systems offerings across the board are
32.8%
East accompanied by software solutions and end-to-end services (design,
Americas 39.4% maintenance, operational and asset management, clinical training, digital
ecosystem and population health management consulting, etc.).
Asia, Australia 27.8%

2.6. Siemens Healthineers Corporate strategies and recent events
Strategic focuses
According to “Strategy 2025”, Siemens Healthineers will seek to leverage data and artificial intelligence to
develop innovative therapy systems, solutions and services and enhance its global presence for future
growth. In 2018, it inaugurated a software development hub in Bangalore, India. The same year, it began
Expand global
operations at its new state-of-the-art headquarters in Erlangen, Germany, and started construction of a
capabilities
new diagnostics plant in Shanghai. In Dec. 2018, it finalised a capacity expansion project at its laboratory
diagnostics reagent production facility in Massachusetts, USA. Growth efforts are underpinned by a focus
on cost cutting. It aims to reduce operating costs by €240m per year starting in 2020.
Siemens Healthineers aims to leverage data gathered from its vast installed equipment base and
extensive network of customer (clinics and healthcare providers) and R&D (universities, research
Leverage
institutes) partnerships to advance medical systems innovation. In the meantime, it continues to focus on
partnerships to
integrating digital technologies in its offerings, as highlighted by recent acquisitions (Conworx , a point-
boost digital
of-care device data management specialist; Medicalis, a healthcare IT group) and alliances (the Spine
growth
Precision Partnership with NuVasive aims to draw on 3D and automation to develop minimally invasive
spine surgery tools).
Recent events
Siemens Healthineers teams up with ScreenPoint Medical to leverage artificial intelligence for breast cancer
May 2018
screening and diagnostics. Under the terms of the deal, the former will acquire a minority stake in the latter.
Siemens Healthineers launches its first-ever AI-based software assistant for radiology, AI-Rad Companion Chest
November 2018
CT (Computed Tomography).
Siemens Healthineers wins a large order to install its newest Atellica Solution (along with adjacent IT solutions and
November 2018
software) for in-vitro diagnostics for Australia-based Primary Health Care.

2.6. Siemens Healthineers Financial indicators

14 13,68 12% 2,2 18%

13,55 13,43 2,03 2,04
1,97
12,94 1,92
13 8% 1,88
12 11,71 4% 1,7 14%
11 0%
10 -4% 1,2 10%

14 15 16 17 18 14 15 16 17 18
Sales by segment* Sales by region

1,46
11,0%
3,73
Europe, C.I.S., Africa, 27,8% 4,41
Imaging Middle East 32,8%
Diagnostics 3,96 Americas

29,8% 7,88
Advanced Therapies
59,2% Asia, Australia
5,29
39,4%
Source: company information; *external revenue, before consolidation

2.6. Siemens Healthineers Statistical tables

2014 11.71 n/a 2.03 17.3% n/a 0.0%
2015 12.94 10.5% 1.88 14.5% 1.29 10.0%
2016 13.55 4.7% 1.92 14.2% 1.33 9.8%
2017 13.68 1.0% 2.04 14.9% 1.40 10.2%
2018 13.43 -1.8% 1.97 14.7% 1.28 9.6%
Segment 2017-2018 2016-2017

Segment* 2018 sales % of total 2017 sales 2017 % share 2016 sales
Imaging 7.88 59.2% 19.7% 7.87 58.2% 0.1% 7.77 1.4%
Diagnostics 3.96 29.8% 11.5% 4.16 30.8% -4.8% 4.14 0.6%
Advanced Therapies 1.46 11.0% 18.8% 1.49 11.0% -2.0% 1.45 3.0%

*external revenue, before consolidation

2.6. Siemens Healthineers Statistical tables
2017-2018 2016-2017
change change
Europe, C.I.S., Africa,

4.41 32.8% 4.34 31.7% 1.6% 4.42 -1.9%
Middle East
Americas 5.29 39.4% 5.57 40.7% -5.0% 5.50 1.3%
Asia, Australia 3.73 27.8% 3.77 27.5% -1.0% 3.63 3.8%

2.7. Becton, Dickinson and Company Presentation
Becton, Dickinson and Company
Reporting segments:
Medication Medication
Pharmaceutic Preanalytical Diagnostic
Delivery Management Diabetes Care Biosciences Interventional
al Systems Systems Systems
Solutions Solutions 6.9% 7.8% 19.0%
8.7% 9.7% 9.6%
22.8% of sales 15.5%
Headquarters
• Established in 1897, Becton, Dickinson and Company (BD) is a leading
New Jersey, USA global medical technology company engaged in the development,
manufacture and marketing of medical devices.
2018 key figures • The Medical business unit consists of Medication Delivery Solutions
(catheters, vascular access technology, etc.), Medication Management
Consolidated sales €13.38bn
Solutions (IT-based workflows for hospitals, automated medication
Operating margin 9.4% dispensing systems, etc.), Diabetes Care (syringes and other tools to treat
Capex ratio 5.6% diabetes), and Pharmaceutical Systems (prefilled drug delivery systems).
• Life Sciences comprises Preanalytical Systems (for blood collection, etc.),
Diagnostics (molecular testing, diagnostic assays, etc.) and Biosciences
2018 revenue by region (tools for genomics research, clinical oncology, etc.).
United States 54.9%
• Interventional primarily supplies single-use devices for surgery across a
International 45.1% wide array of specialties (urology, cardiovascular, etc.). It comprises three
sub-units, namely Surgery, Peripheral Intervention, and Urology and
Critical Care.

2.7. Becton, Dickinson and Company Corporate strategies and recent events
Strategic focuses
At the end of 2017, BD closed the €21bn acquisition of C. R. Bard, a leader in cardiovascular, urology,
hernia and cancer therapy devices. This move comes two years after the €11bn buyout of CareFusion, a
transaction that enabled BD to build up “integrated medication management solutions”. In addition to
Portfolio
these large-scale acquisitions, the company has made smaller bolt-on purchases to extend its product
optimisation via
expertise. Specifically, it snapped up TVA Medical, a group engaged in the development of minimally
acquisitions and
invasive solutions for patients suffering from chronic kidney diseases, in July 2018, and Caesarea Medical
divestitures
Electronics, an Israeli infusion pump system specialist, in July 2017. Actions to reinforce its capabilities in
high-growth segments were accompanies by the full divestiture of its Respiratory Solutions business
(formerly part of the Medical division) in April 2018.
While focusing on achieving cost synergies from recent mergers (CareFusion, Bard) and paying down
debt, BD is seeking to sustain its leadership in key areas through innovation. New products launched
Innovation for include the LUTONIX™ AV catheter (Interventional), the BD MAX™ enteric viral panel (Diagnostics), and a
integrated new generation of BD Nano™ needles especially developed for diabetes medication injection. Meanwhile,
medication the group has identified the “heightened need for seamless integration of disparate technologies“ as a
management key catalyser of growth and is striving to deliver end-to-end medical solutions that incorporate advanced
technologies such as data analytics and AI. It has also accelerated the launch of diagnostic informatics
and automation solutions (e.g. BD Synapsys™ microbiology informatics).
Recent events
Becton, Dickinson and Company launch new applications on its integrated BD HealthSight™ data-based analytics
November 2018
platform for medication management.
Becton, Dickinson and Company receives clearance in the US for its BD Nano™ pen needle for medication
January 2019
injection in patients suffering from diabetes.

2.7. Becton, Dickinson and Company Financial indicators

14 13,38 40% 1,6 20%
1,34
30% 1,24 1,25
12 1,20 16%
1,2
10,45 20%
10,12
10 0,90 12%
8,60 10%
0,8
8 8%
7,08 0%
6 -10% 0,4 4%
14 15 16 17 18 14 15 16 17 18

Medication Delivery
Solutions
2,54
Medication Management
19,0% 3,05
Solutions
22,8%
Diabetes Care
Pharmaceutical Systems 1,04 6,04

7,8% United States
45,1%
Preanalytical Systems 7,34
1,29 2,07 International
54,9%
Diagnostic Systems 9,6% 15,5%
1,30 0,92
Biosciences
9,7% 1,17 6,9%
Interventional segment 8,7%

2.7. Becton, Dickinson and Company Statistical tables

2014 7.08 n/a 1.34 19.0% 0.99 14.0%
2015 8.60 21.5% 0.90 10.4% 0.58 6.8%
2016 10.45 21.4% 1.20 11.5% 0.82 7.8%
2017 10.12 -3.1% 1.24 12.2% 0.92 9.1%
2018 13.38 32.2% 1.25 9.4% 0.26 1.9%
2017-2018 2016-2017
change change
United States 7.34 54.9% 5.44 53.8% 34.8% 5.77 -5.6%
International 6.04 45.1% 4.68 46.2% 29.1% 4.68 0.0%

2.7. Becton, Dickinson and Company Statistical tables
Segment 2017-2018 2016-2017

Medication Delivery
3.05 22.8% 2.35 23.3% 29.6% 2.28 3.2%
Solutions
Medication
Management 2.07 15.5% 1.92 19.0% 7.6% 1.84 4.5%
Solutions 36.3%
Diabetes Care 0.92 6.9% 0.88 8.7% 4.6% 0.86 3.2%
Pharmaceutical
1.17 8.7% 1.05 10.4% 11.2% 1.00 4.8%
Systems
Preanalytical Systems 1.30 9.7% 1.23 12.2% 5.6% 1.18 4.4%
Diagnostic Systems 1.29 9.6% 27.9% 1.15 11.4% 11.5% 1.09 5.9%
Biosciences 1.04 7.8% 0.95 9.4% 9.0% 0.94 1.8%
Interventional
2.54 19.0% 10.1% 0.57 5.7% 343.4% 0.58 -0.6%
segment

2.8. Stryker Corporation Presentation
Stryker Corporation
Reporting segments:
Orthopaedics MedSurg Neurotechnology and Spine

36.7% of sales 44.4% 18.9%
Headquarters • Founded in 1941, Stryker is a leading medical technology company with

Michigan, USA strong positions in orthopaedics, surgery instruments, and
neurotechnology.
• Orthopaedics focuses on implants for hip, knee and trauma surgeries. It
2018 key figures is the leading player (22% market share) in the foot & ankle market in the
Consolidated sales €11.38bn US. Stryker’s main competitors in the segment are Zimmer, DePuy
Synthes (part of J&J), and Smith & Nephew.
Operating margin 18.7%
Capex ratio 4.2% • MedSurg consists primarily of surgical systems, endoscopy, and
emergency medical technology. Stryker’s chief rivals are Zimmer,
Medtronic, and J&J in instruments; Smith & Nephew, ConMed Linvatec,
2018 revenue by region Karl Storz and Olympus in endoscopy; and Hill-Rom, Zoll Medical,
Medline and Philips in the emergency medical area.
United States 72.4%
• Stryker is a top 5 player in Neurotechnology and Spine. Its fiercest
International 27.6%
competitors in both areas are Medtronic and J&J. Smaller rivals include
Terumo and Penumbra in Neurotechnology and Nuvasive and Globus
Medical in Spine.

2.8. Stryker Corporation Corporate strategies and recent events
Strategic focuses
Stryker is looking to reinforce its know-how in core areas: orthopaedics, surgery, and neurotechnology &
spine. To this end, it is investing in innovation and frequently buying companies with complementary
expertise and/or geographical reach. Over the past few years, main bolt-on acquisitions have included
Add expertise in Sage Products (€2.5bn, surgery); Physio-Control (€1.1bn, monitors/defibrillators, exposure to N. Europe);
core areas Novodaq (€640m, minimally invasive and open surgery technology); Vexim (€183m, implants, exposure to
Western Europe); Entellus Medical (€600m, minimally invasive instruments for ear, nose and throat), Hygia
Health Services, (recycling of single-use devices); and Mako (robotic arm system for knee and hip
surgery).
Stryker generated approx. 27.6% of its annual revenue outside its home market, the US, a relatively small
share compared to its main peers. In the coming years, it aims to accelerate investment in “key” global
Further
markets, while optimising country organisation and global functions. This strategy is underpinned by
internationalisation
local R&D operations, with most of its new launches, as well as advanced versions of existing products,
of operations
engineered in close collaboration with physicians, primarily at its 10 research hubs across the globe (the
US, China, France, Germany, India, Ireland, Puerto Rico, Sweden, Switzerland and the UK).
Recent events
Stryker buys HyperBranch Medical Technology for €200m cash in a move to add new capabilities in
October 2018 neurotechnology. The target is the maker behind Adherus AutoSpray Dural Sealant, one of two polymer-based
sealant solutions for surgery sanctioned by the FDA in the US market.
November 2018 Stryker finalises the buyout of K2M Group, a “global leader” in spine and minimally invasive technologies.

2.8. Stryker Corporation Financial indicators

12 11,38 16% 3 25%

10,41
9,48
8,10 8,32 12% 2,12 20%
1,92
8 2 1,81
1,56
8% 15%
1,04
4 1
4% 10%
0 0% 0 5%
14 15 16 17 18 14 15 16 17 18

2,15
18,9% 3,14
Orthopaedics
4,18 27,6%
36,7%
MedSurg United States
International
Neurotechnology and
Spine 8,24
5,06 72,4%
44,4%

2.8. Stryker Corporation Statistical tables

2014 8.10 n/a 1.04 12.9% 0.43 5.3%
2015 8.32 2.8% 1.56 18.7% 1.20 14.5%
2016 9.48 13.9% 1.81 19.1% 1.38 14.5%
2017 10.41 9.9% 1.92 18.4% 0.85 8.2%
2018 11.38 9.3% 2.12 18.7% 2.97 26.1%
2017-2018 2016-2017
change change
Orthopaedics 4.18 36.7% 3.94 37.9% 5.9% 3.70 6.6%
MedSurg 5.06 44.4% 4.65 44.7% 8.8% 4.10 13.5%
Neurotechnology and
2.15 18.9% 1.82 17.5% 18.0% 1.68 8.2%
Spine

2.8. Stryker Corporation Statistical tables
2017-2018 2016-2017
change change
United States 8.24 72.4% 7.58 72.8% 8.7% 6.89 10.1%
International 3.14 27.6% 2.83 27.2% 10.9% 2.59 9.4%

2.9. Roche - Diagnostics Presentation
Roche - Diagnostics
Main businesses:
Centralised and Point

Diabetes Care Molecular Diagnostics Tissue Diagnostics
of Care Solutions
15.7% 15.4% 8.7%
60.3% of sales
Headquarters
• Roche is a Swiss-based pharmaceutical company with operations
Basel, Switzerland
concentrated in two core areas: Pharmaceuticals and Diagnostics. It was
founded by Fritz Hoffmann-La Roche in 1896.
2018 Roche Diagnostics key figures • Roche’s position in pharmaceuticals and in-vitro diagnostics provides it
Consolidated sales €11.09bn with a strong platform for thought leadership in the area of personalised
medicine. A recent partnership with GE Healthcare in oncology will
Operating margin 4.8% enable Roche to bank on GE’s in-vivo (imaging) diagnostics equipment
Capex ratio 10.7% installed base (as well as associated data) and digital expertise to
accelerate development of personalised cancer treatment.
2018 Roche Diagnostics revenue by region • The Diagnostics division has seen steady revenue expansion over the
past few years (2014-2018 CAGR: 4.6%), with solid contributions from all
EMEA 38.7% Asia-Pacific 25.8% businesses. The company is looking to expand the scope of its
North Latin diagnostics portfolio into new areas, including haematology diagnostics.
24.9% 6.5% Roche has recently entered the haematology market with the dedicated
America America
“cobas m 511” system.
Japan 4.0%

2.9. Roche - Diagnostics Corporate strategies and recent events
Strategic focuses
Roche, the world’s largest in-vitro diagnostics company, has clearly established the integration of its
diagnostics and pharmaceutical capabilities to accelerate delivery of personalised cancer treatment as a
Partnerships to growth priority. While striving to strengthen its core product lines through innovation, Roche has been
accelerate building a network of partnerships to support its goal. Following the GE tie-up in Jan. 2018, Roche
integrated cancer announced a new collaboration with Merck, a leading pharmaceutical peer, in the area of cancer
treatment delivery diagnostic solutions. The acquisition, in Jan. 2018, of Ignyta, a company that delivers targeted
therapeutics by leveraging diagnostic tests, further supports Roche’s integrated
diagnostics/pharmaceutical approach in cancer treatment.
On top of Roche’s and GE Healthcare’s data-based partnership to accelerate personalised oncology

treatment, Roche has been strengthening its technology-driven product offerings and aims to enhance
productivity by automating workflows and healthcare management. The alliance with GE was
Integrate digital
accompanied by the setting up of a specialised data analytics service arm for healthcare, Roche
solutions across the
Healthcare Consulting, and the acquisition of Viewics, a data-driven healthcare company, and Flatiron
board
Health (€1.7 billion), a developer of oncology-specific electronic health records software. Roche’s recent
innovation in the field includes the Viewics data-based software for more efficient clinical setting
management and the automated “cobas infinity central lab solution”.
Recent events
Roche will work with Merck (also known as MSD), a leading global pharmaceutical company, to jointly develop
December 2018 specific cancer diagnostic tests that can help establish if patients qualify for anti-PD-1 treatment with Merck’s
Keytruda.
Roche launches the uPath solution for pathology workflows, a more advanced version of its previous VENTANA
Virtuoso software. The new system “drastically” reduces image rendering times and incorporates automation
January 2019
features designed to boost productivity. uPath software development was enabled by the acquisition of the Leeds
Virtual Microscope system, developed in the UK .

2.9. Roche - Diagnostics Financial indicators
Roche Diagnostics net revenues Roche Diagnostics operating income and margin
12 8% 1,2 1,11 15%

1,04
11,09
12%
11 6% 0,9
10,38
9%
9,88 0,53
10 4% 0,6
9,27 9,31 6%
0,26
9 2% 0,3 0,21
3%
8 0% 0,0 0%
14 15 16 17 18 14 15 16 17 18

0,45
0,96 4,0%
8,7% 0,73
Centralised and Point
6,5%
of Care Solutions 1,71
EMEA
15,4% 4,29
Diabetes Care
Asia-Pacific 38,7%
2,77
North America 24,9%
Molecular Diagnostics
6,69
1,74 Latin America
60,3%
15,7%
Tissue Diagnostics Japan
2,87
25,8%

2.9. Roche - Diagnostics Statistical tables
Roche Diagnostics Roche Diagnostics Roche Diagnostics

Year Annual % change
net sales operating income operating margin
2014 9.27 n/a 0.21 2.3%
2015 9.31 0.4% 1.11 11.9%
2016 9.88 6.1% 1.04 10.6%
2017 10.38 5.0% 0.26 2.5%
2018 11.09 6.9% 0.53 4.8%
Segment 2018 sales % of total 2017 sales 2017 % share 2017-2018 change 2016 sales
Centralised and Point of

6.69 60.3% 6.18 59.4% 8.2% 5.77
Care Solutions
Diabetes Care 1.74 15.7% 1.65 15.9% 5.2% 1.74
Molecular Diagnostics 1.71 15.4% 1.69 16.3% 0.8% 1.59
Tissue Diagnostics 0.96 8.7% 0.87 8.4% 10.3% 0.79

2.9. Roche - Diagnostics Statistical tables
EMEA 4.29 38.7% 4.11 39.5% 4.5%
Asia-Pacific 2.87 25.8% 2.53 24.3% 13.4%
North America 2.77 24.9% 2.59 24.9% 6.7%
Latin America 0.73 6.5% 0.76 7.3% -4.5%
Japan 0.45 4.0% 0.41 3.9% 10.6%

2.10. Olympus Presentation
Olympus
Reporting segments:
Medical - Medical - Medical - Scientific Imaging (digital

Other
endoscopes surgical endotherapy Solutions cameras)
1.3%
42.8% of sales 25.5% 10.1% 12.7% 7.7%
Headquarters
Shinjuku, Tokyo, Japan • Established in 1919, Olympus is among the world’s top 20 medtech
companies by size of revenues.
2018 key figures (consolidated) • The group develops diagnosis equipment such as gastrointestinal
Consolidated sales €6.01bn endoscopes and minimally invasive tools centred around endo-therapy.
Operating margin 10.3% • Olympus’ medtech operations are organised under three divisions (out of
Capex ratio 8.3%
a total of six). The group serves over 70% of the global gastrointestinal
endoscope market. Its extensive international reach is supported by a
network of 200 repair and service centres scattered across key markets
2018 revenue by region (Medical) around the globe.
Japan 18.2% • Olympus is also a leading digital camera maker worldwide (Imaging
Europe 24.3% Business). The Scientific Solutions Business develops and markets
biological and industrial microscopes, testing equipment, etc. The Other
North America 36.3%
division is focused on biomedical materials.
Asia and Oceania 19.1%
Others 2.1%

2.10. Olympus Corporate strategies and recent events
Strategic focuses
According to the eponymous plan announced in January 2019, Olympus is striving to develop global
Become a “global leadership in the medical equipment industry. To this end, the group is reshaping its internal organization
medical technology by transitioning to a globally integrated and centralized management structure. It is also rethinking its
company” production and sales processes in order to achieve simplification and cost efficiency and reduce time-to-
market. A comprehensive cost-cutting programme will be announced towards the end of 2019.
At the same time, effective April 2019, Olympus is reorganising its current medical technology-related
divisions (gastrointestinal and respiratory; general surgery; urology/gynaecology; ear, nose, and throat;
A more focused
and medical service) into Endoscopic Solutions and Therapeutic Solutions. The former will be based in
organisation
Japan and cover multi-use products as well as related software and services. The latter, headquartered in
the US, will primarily manage single-use devices.
19% of Olympus’ medical sales in the last fiscal year (ending March 31, 2018) came from emerging
markets. The group has a particularly strong presence in high-growth economies in Asia, where the
Accelerate density of medical tools in general, and its key product line – endoscopes – in particular, is relatively low.
development in It is therefore aiming to establish a solid presence in these markets “ahead of other global healthcare
emerging markets companies”. In parallel, Olympus is increasing the breadth of its product offerings by acquiring companies
with complementary expertise (e.g. Medi-Tate – devices for the treatment of lower urinary tract
symptoms; Cybersonics – urology solutions).
Recent events
Olympus is granted US FDA approval to market expanded therapeutic indications and new surgical tools within
September 2018
the EZ Shot 3 Plus product family.
Olympus acquires an undisclosed stake in Israeli-based medtech group Medi-Tate with a view to diversifying its
November 2018 minimally invasive surgical tools portfolio. Olympus thereby becomes the distributor of Medi-Tate’s products and
will in due course acquire 100% of the company.

2.10. Olympus Financial indicators

7 8% 0,9 14%
0,80
6,14 6,01
5,84 0,69
6 5,65 4% 12%
5,45 0,62
0,6 0,56 0,54
5 0% 10%
4 -4% 8%
0,3
3 -8% 6%
2 -12% 0,0 4%
14 15 16 17 18 14 15 16 17 18
Sales by segment Sales by region (Medical division)

0,08
0,46 0,10
Medical - endoscopes 1,3%
7,7% 2,1%
0,86
0,90
Medical - surgical 0,76 18,2%
Japan 19,1%
12,7%
Medical - endotherapy 2,57
North America
42,8%
Scientific Solutions 0,60 Europe
10,1%
Imaging (digital Asia and Oceania
1,14
cameras) Others 1,71
24,3%
Other 36,3%
1,53
25,5%

2.10. Olympus Statistical tables

2014 5.45 n/a 0.56 10.3% 0.10 1.9%
2015 5.84 7.2% 0.69 11.9% -0.07 -1.1%
2016 6.14 5.2% 0.80 13.0% 0.48 7.8%
2017 5.65 -8.0% 0.54 9.6% 0.33 5.8%
2018 6.01 6.2% 0.62 10.3% 0.44 7.3%
Segment margin
(%)
Medical - endoscopes 2.57 42.8% 2.43 43.0% 5.7%
Medical - surgical 1.53 25.5% 19.8% 1.39 24.6% 10.0%
Medical - endotherapy 0.60 10.1% 0.53 9.4% 13.8%
Scientific Solutions 0.76 12.7% 6.4% 0.71 12.6% 7.1%
Imaging (digital cameras) 0.46 7.7% -2.0% 0.48 8.5% -4.0%
Other 0.08 1.3% -50.4% 0.11 1.9% -29.4%


2.10. Olympus Statistical tables
Medical division Medical division

Year Medical division net sales Annual % change
operating income operating margin
2014 3.76 n/a 0.86 22.9%
2015 4.26 13.4% 0.95 22.4%
2016 4.65 9.1% 1.07 23.0%
2017 4.36 -6.3% 0.88 20.1%
2018 4.71 8.1% 0.93 19.8%
Medical sales by region 2018 sales % of total 2017 sales 2017 % share 2017-2018 change
Japan 0.86 18.2% 0.83 19.1% 2.8%
North America 1.71 36.3% 1.63 37.4% 4.7%
Europe 1.14 24.3% 1.04 23.9% 10.0%
Asia and Oceania 0.90 19.1% 0.78 17.9% 15.5%
Others 0.10 2.1% 0.07 1.7% 35.3%

3. Sources

Company websites
Medtronic www.medtronic.com
Johnson & Johnson - Medical Devices www.jnj.com
Koninklijke Philips www.philips.com

www.abbott.com
Neuromodulation
GE Healthcare www.ge.com
Siemens Healthineers www.corporate.siemens-healthineers.com
Becton, Dickinson and Company www.bd.com
Stryker Corporation www.stryker.com
Roche - Diagnostics www.roche.com
Olympus www.olympus-global.com/ir/

4. Annexes

Fiscal periods and exchange rates
Medtronic 2018 fiscal year ended April 27, 2018. Exchange rate: 1 USD = 0.8369 EUR
Johnson & Johnson - Medical Devices 2018 fiscal year ended December 31, 2018. Exchange rate: 1 USD = 0.8369 EUR
Koninklijke Philips 2018 fiscal year ended December 31, 2018. Currency: Euro

2018 fiscal year ended December 31, 2018. Exchange rate: 1 USD = 0.8369 EUR
Neuromodulation
GE Healthcare 2018 fiscal year ended December 31, 2018. Exchange rate: 1 USD = 0.8369 EUR
Siemens Healthineers 2018 fiscal year ended September 30, 2018. Currency: Euro
Becton, Dickinson and Company 2018 fiscal year ended September 30, 2018. Exchange rate: 1 USD = 0.8369 EUR
Stryker Corporation 2018 fiscal year ended December 31, 2018. Exchange rate: 1 USD = 0.8369 EUR
Roche - Diagnostics 2018 fiscal year ended December 31, 2018. Exchange rate: 1 CHF = 0.8612 EUR
Olympus 2018 fiscal year ended March 31, 2018. Exchange rate: 1 JPY = 0.0076 EUR

Glossary
ENGLISH FRENCH
CATEGORY
ITEM DEFINITION ITEM DEFINITION
Acronyme de Taux de Croissance Annuel Moyen, ou CAGR

CAGR Acronym for Compound Annual Growth Rate. TCAM
en anglais.
Short for "Capital Expenditure"), an item of the cash-flow Abréviation de "Capital Expenditure", un élément du tableau
statement used as a proxy for investment in property, plant and de trésorerie mesurant l'investissement dans les
Capex CAPEX
equipment (PPE). Generally entails physical assets used immobilisations corporelles. Il sert à évaluer l'effort consenti
to maintain or increase operation capacities. pour maintenir ou développer les capacités de production.
Le Free Cash Flow, ou Cash Flow disponible en français,

Free The cash that a company is able to generate after subtracting Cash flow
correspond à la trésorerie générée par une entreprise après
cash flow expenses needed to maintain its asset base. disponible
déduction des dotations aux immobilisations.
Aussi appelé écart d'acquisition ou survaleur, le goodwill est

Goodwill is the difference between the purchase of the fair value
Goodwill Goodwill la différence entre le prix d'acquisition et la juste valeur
of assets and liabilities acquired by a company.
d'éléments du passif et de l'actif acquis par l'entreprise.
La marge brute correspond à la différence entre le chiffre

Gross profit is the result of the difference between total sales
d'affaires et le coût de fabrication du produit ou de la
Gross profit and the cost of making products or providing services. Payroll Marge brute
fourniture de services. Les salaires, les intérêts, les taxes, etc.
and interest costs as well as taxes are not taken into account.
n'entrent pas dans le calcul de la marge brute.
Impairment charges occur when a company has found that the

Basic Impairment Une perte de valeur se produit lorsqu'une entreprise est
value of its goodwill has been overestimated and needs to be Perte de valeur
financial charge amenée à revoir à la baisse la valeur de son goodwill.
revised.
analysis
Liabilities encompass all obligations arising from a company's Le passif comprend toutes les obligations contractées par
past operations and which will result in an outflow of resources une entreprise dans l'exercice passé de ses activités et qui se
Liabilities in the future. Liabilities are divided into short term and long Passif matérialiseront par des décaissements à terme. Le passif
liabilities, and represent the debt a company owes to its peut être courant ou non-courant, et représente l'ensemble
creditors. des créances d'une entreprise.
Net debt is calculated by subtracting a company's cash from its L'endettement net se calcule en déduisant le cash disponible
Net debt Endettement net
total debt. d'une entreprise du montant total de ses dettes.
Le résultat net est le bénéfice net d'une entreprise. Il

Net profit refers to a company's total earnings. It is the result of
correspond à la différence entre le chiffre d'affaires et toutes
Net profit/ the difference between net sales and all operating and non-
Résultat net les dépenses opérationnelles et non-opérationnelles comme
net margin operating expenses such as taxes, interests, depreciation and
les impôts, les intérêts, les charges de dépréciation et
amortisation expenditures.
d'amortissement.
Le résultat opérationnel désigne le bénéfice dégagé par une

Operating profit refers to the earnings generated by the normal
Operating Résultat entreprise grâce à l'exercice de ses activités traditionnelles.
business operations of a company. Operating profit is the result
profit/ opérationnel/ Le résultat opérationnel est obtenu en déduisant les
of the difference between sales and total operating expenses.
operating marge dépenses d'exploitation du chiffre d'affaires. La marge
Operating margin is expressed in % and is computed by dividing
margin opérationnelle opérationnelle, exprimée en %, est obtenue en divisant le
operating profit by net sales.
résultat opérationnel par le chiffre d'affaires.

Glossary
ENGLISH FRENCH
CATEGORY
ITEM DEFINITION ITEM DEFINITION
Expenses associated with the research and development Dépenses associées au processus de recherche et de
R&D Dépenses de
process of creating new products or services; it is often développement de nouveaux produits et de nouveaux services.
expenditure R&D
used as a proxy for innovation. C'est un indicateur de la capacité d'innovation d'une entreprise
Return on assets is calculated by dividing a company's Le retour sur actif est calculé en divisant le résultat net d'une
Return on
net income by its total assets. It measures the ability of Retour sur actif entreprise par le total de son actif. Il mesure la capacité d'une
assets
the company to generate profits from its assets. entreprise à créer de la richesse à partir de ce dont elle dispose.
Return on equity is calculated by dividing a company's Le retour sur fonds propre est calculé en divisant le résultat net
Return on net income by its shareholder equity. It measures the Retour sur d'une entreprise par le total de ses fonds propres. Il mesure la
Basic financial equity ability of a company to generate profits from its fonds propres capacité d'une entreprise à créer de la richesse à partir des
analysis investment funds. capitaux apportés par ses actionnaires.
Le chiffre d'affaires correspond au total des ventes hors taxes de

Earnings made from the sales of goods and services,
Chiffre biens et de services. Il est le reflet des volumes écoulés, mais
Sales excluding VAT and other taxes. Reflects, total volumes
d'affaires aussi du prix de vente moyen, des taux de change et des
sold, selling prices, exchange rates and product mixes.
variations du mix produit.
Le fonds de roulement est la différence avec l'actif courant et le

Working capital is the difference between currents assets
Fonds de passif courant. Un fonds de roulement positif signale que
Working capital and current liabilities. When positive, working capitals
roulement l'entreprise pourrait honorer ses créances à court terme avec ses
means a company would able to pay its short term debt.
actifs à court terme.
Assets encompass all the economic resources owned by a

L'actif regroupe toutes les ressources économiques détenues
Assets company. They are commonly divided into short term Actif
par une entreprise. I
(cash, trade receivables, etc.) and long term assets
Acronym referring to Brazil, Russia, India and China, a

Acronyme désignant le Brésil, la Russie, l'Inde et la Chine, un
group of countries with similar characteristics in terms of
groupe de pays présentant des similarités en termes de
BRICs economic development. These countries report dynamic BRICs
développement économique. Ces pays affichent des taux de
growth rates across all major industries, and also enjoy a
croissance très dynamiques dans tous les principaux marchés,
very large population.
Business climate refers to the general economic Le climat des affaires désigne le sentiment économique
Macroeconomic
Business sentiment. It is measured by various indicators based on Climat des dominant. Il est mesuré par des indicateurs établis sur la base de
concepts
climate questionnaires sent to survey participants from firms affaires questionnaires envoyés à des professionnels représentatifs des
representative of the economy. grands secteurs d'activité.
Indice des prix

Consumer price An indicator which measures changes in prices of Un indicateur qui mesure les variations de prix pour les biens et
à la
index consumers goods and services bought by households. les services achetés par les ménages.
consommation
Consumer sentiment refers to the degree of optimism of

Le moral des ménages désigne la perception de la situation
Consumer households as regards the state of the economy. Moral des
économique qu'ont les ménages. Cet indicateur est souvent
sentiment Consumer sentiment is often used as a proxy for future ménages
utilisé pour évaluer les futures dépenses des ménages.
spending.

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Leading Players

of the Global Medical

Publication date: February 2019

Analyst: Petra Frent

Report code: 9XEEE12

Leading Players of the Global Medtech Industry – February 2019 2

Leading Players of the Global Medtech Industry – February 2019 3

The vast and fragmented €363bn medical technology industry…

Leading Players of the Global Medtech Industry – February 2019 4

…is dominated by groups based in mature markets, especially in the USA

Name Country Revenues Main medtech activities

Medtronic 25.07 Cardiovascular, surgery, neurology and diabetes

Johnson & Johnson - Medical Devices 22.59 Vision, orthopaedics, surgery

Koninklijke Philips (Royal Philips) 18.12 In-vivo diagnostics, healthcare IT

GE Healthcare 16.56 In-vitro and in-vivo diagnostics, healthcare IT

Abbott Diagnostics, Cardiovascular &

Siemens Healthineers 13.43 In-vitro and in-vivo diagnostics, healthcare IT

Stryker Corporation 11.38 Orthopaedics, surgery supplies, neurology

Roche - Diagnostics 11.09 In-vitro diagnostics

Olympus - Medical 4.71 In-vivo diagnostics – endoscopy

Source: Xerfi Global with company reports

Leading Players of the Global Medtech Industry – February 2019 5

Scale matters: leading players tend to be highly profitable

2014-2018 2018 2014-18

•Medtronic’s FY2018 (ending April 27, 2018) revenue rose 0.8%

Leading Players of the Global Medtech Industry – February 2019 6

2014-2018 2018 2014-18

•Higher sales of services and equipment across the Healthcare

•The large-scale acquisitions of Alere (diagnostics) and global

•Organic growth in Imaging and Advanced Therapies was blunt by

Leading Players of the Global Medtech Industry – February 2019 7

2014-2018 2018 2014-18

•2018 consolidated revenues rose significantly on a yearly basis,

Leading Players of the Global Medtech Industry – February 2019 8

Alliances and acquisitions are the main means to add expertise…

COMPANY STRENGTHS WEAKNESSES AND RISKS MAIN STRATEGIC PRIORITIES

• Diversified medtech portfolio, further • Rely on innovation for long-term

• Diversified pharmaceutical and • Portfolio reshuffling: exit struggling

• Partnerships and acquisitions to

Source: Xerfi Global

Leading Players of the Global Medtech Industry – February 2019 9

…especially as the sector is being reshaped by digital technologies

COMPANY STRENGTHS WEAKNESSES AND RISKS MAIN STRATEGIC PRIORITIES

• Expand in-vitro diagnostics sales via

• Horizontal diversification in • Strengthen position in

• Leader in imaging and diagnostics

Source: Xerfi Global

Leading Players of the Global Medtech Industry – February 2019 10

Emerging market expansion offers medium/long term growth opportunities

COMPANY STRENGTHS WEAKNESSES AND RISKS MAIN STRATEGIC PRIORITIES

• Acquisitions to widen portfolio;

Source: Xerfi Global

Leading Players of the Global Medtech Industry – February 2019 11

Leading Players of the Global Medtech Industry – February 2019 12

Aortic & Respiratory, Restorative

Leading Players of the Global Medtech Industry – February 2019 13

Leading Players of the Global Medtech Industry – February 2019 14

Consolidated net revenues Consolidated operating income and margin

30 50% 6 5,57 25%

Sales by segment Sales by region

Cardiac Rhythm & Heart

Source: company information

Leading Players of the Global Medtech Industry – February 2019 15