36 th Annual JP Morgan Healthcare Conference Mike Mahoney Chairman - PowerPoint PPT Presentation

36 th Annual JP Morgan Healthcare Conference Mike Mahoney Chairman & Chief Executive Officer

Safe Harbor for Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements may be identified by words like “anticipate,” “expect,” “project,” “believe,” “plan,” “estimate,” “intend” and similar words. These forward -looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could differ materially from the expectations and projections expressed or implied by our forward-looking statements. Factors that may cause such differences can be found in our most recent Form 10-K and Forms 10-Q filed or to be filed with the Securities and Exchange Commission under the headings “Risk Factors” and “Safe Harbor for Forward - Looking Statements.” Accordingly, you are ca utioned not to place undue reliance on any of our forward-looking statements. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions, or circumstances on which they may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. Non-GAAP Measures: This document contains non- GAAP measures (denoted with *) in talking about our company’s performance. The reconciliations of those non- GAAP measures to their most comparable GAAP measures are contained within this document including appendices attached to the end of this presentation. Financial Disclaimers: Operational growth rates are non-GAAP measures that exclude the impact of changes in foreign currency exchange rates. Organic growth rates are non-GAAP measures that exclude the impact of changes in foreign currency exchange rates and the sales from significant acquisitions (Symetis SA, the American Medical Systems male urology portfolio and EndoChoice Holdings, Inc.) in the relevant periods. We define Emerging Markets as including certain countries that we believe have strong growth potential based on their economic conditions, healthcare sectors and our global capabilities. Currently, we have 20 countries in our definition of Emerging Markets. Market Estimates: Unless noted otherwise, all references to market sizes, market share positions, and market growth rates are BSX internal estimates. 2

Regulatory Disclaimers Product Regulatory Disclaimer Implantable Cardiac Monitor Device under development. Not available for use or sale worldwide. EMPOWER ™ Leadless Pacer Device under development. Not available for use or sale worldwide. Apama RF Balloon Catheter Device under development. Not available for use or sale worldwide. DrectSense ™ Technology Device under development. Not available for use or sale worldwide. CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not Ranger ™ Drug-Coated Balloon available for sale. Drug Eluting Stent – Below-the-knee indication Device under development. Not available for use or sale worldwide. CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not Eluvia ™ Drug eluting self-expanding SFA stent available for sale. Lotus Edge ™ U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale. CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not ACURATE ™ Self Expanding Valve Platform available for sale. WATCHMAN ™ FLX Pending CE Mark. Not available for use or sale in the U.S. 3

Our Mission and Values Boston Scientific is dedicated to transforming lives through innovative medical solutions that improve the health of patients around the world. Meaningful Global Caring High Performance Diversity Winning Spirit Innovation Collaboration 4

What to Expect from BSX Track record of delivering revenue and EPS growth faster than peer group • – Q4 2017 sales growth 1 : 8% operational*, 7% organic* vs Q4 2016 organic* comp of 10% – FY 2017 sales growth 1 : 8% operational*, 7% organic* vs FY 2016 organic* comp of 10% – FY 2017 profitability and EPS 2 : +100 bps adj. OM*, +11-14 adj. EPS growth* – 2015-2017E: organic revenue* CAGR 1 +7% and adjusted EPS CAGR 2 +14-15% Driving category leadership and expanding globally with scale & capabilities in emerging markets • – Gaining share globally via portfolio innovation and economic value drivers Diversified & durable growth profile + investing to lead in multiple new high growth markets • – Diversified portfolio today + entering new high-growth markets totaling ~$15B in 2021E Strong execution and shareholder value creation: More to come in 2018-2020 and beyond • – 2018E-20E: organic rev.* CAGR +5-8%, adj. OM* gains, flat mid-teens tax rate, EPS CAGR +DD – Strong adj. free cash flow*: est. $6.3B cumulative in years 2018-2020 with limited contingencies 5

Boston Scientific At-A-Glance 2017 Revenue 1 and Operational Growth 1 *: (Total company: $9.0B, 8%; Organic Growth* 7%) Interventional Cardiology Endoscopy $2.4B, +6% $1.6B, +12% Structural Heart Urology & Pelvic Health $275M+ 2 $1.1B, +12% Peripheral Interventions Neuromodulation $1.1B, +7% $0.6B, +14% Rhythm Management Electrophysiology CRM $1.9B, +2% $0.3B, +14% 6

High Performance Culture and Track Record Adjusted Operating Revenue Adjusted EPS* Margin* Reported Revenue, Y/Y operational* growth Y/Y Organic* growth rates 25% – $1.24 - 25.25% $1.27 24.1% $9.0 +11% +8% $1.11 22.3% -14% $8.4 +7% +12% +20% 20.2% $0.93 $7.5 +10% $7.4 18.9% $0.84 $7.1 +8% +11% +6% +15% +2% +5% $0.73 +4% +11% 2 1 2 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017E 2013 2014 2015 2016 2017E Delivering on margin Consistent double digit EPS growth: Sales growth consistent > mkt expansion goals 14-15% CAGR ’15 - ’17E 7% organic CAGR ’15 - ’17E 7

Diversified in Large Global Markets While Investing in Higher Growth Segments 2017E ’17 - ’20E 2017E 2020E Business Key Investment Areas, New Markets Market Market Market Size Market Size Growth CAGR Cardiovascular Cardiology $7.5B 1% $8B 0-1% Complex PCI, PCI Guidance, Heart Failure Structural Heart $4B 21% $6B 15-20% TAVR, LAAC, Mitral Replace & Repair Peripheral $6B 6% $7.5B 6-8% Drug-Eluting, Oncology, Venous, CLI CRM + Diagnostics $10B 1% $10B 0-2% S-ICD/Leadless, Diagnostics, Heart Failure Mgmt. Rhythm EP $4B 12% $6B 9-11% Mapping, Navigation, Therapeutic Solutions Endoscopy $5B 5% $6B 5-6% Endo-Luminal Surgery, Visualization, Pulmonary MedSurg Urology & PH $3.5B 5% $4.5B 5-6% Stone, Prostate, ER, OAB, Globalization Neuromodulation $3B 14% $4B 10-15% Pain, Brain, Movement Disorders WW Total ~$43B 4-5% ~$50B 5-6% Continuing to invest in higher growth areas 8

Expanding Today into Multiple New High Growth Markets That Approach ~$15B 2021E 2017 Market Growth Accelerators Sales 1 ~ 2021E • WATCHMAN global expansion IC: TAVR + LAAC $275M+ ~$6B • ACURATE – TAVR • LOTUS – TAVR • Eluvia – DES • Ranger – DCB PI Drug Eluting ~$50M ~$2B • Critical Limb Ischemia (CLI) • Apama RF PVI Balloon for AFib • Implantable Cardiac Monitor (ICM) Rhythm Management --- ~$2B • HeartLogic ™ Heart Failure Alert • Pathology • Infection Prevention Endo new markets ~$50M ~$2B • Endo-Luminal Surgery • Visualization Uro/PH new markets ~$50M ~$2B • Cancer • Overactive Bladder • DBS for PD, Tremor 40%+ Neuromod - Brain ~$1B • Other indications 2020+ growth <$500M ~$15B 9

MedSurg: Category Leadership & Growth Drivers Urology and Neuromodulation Endoscopy Pelvic Health SpyGlass DS ™ Stone Disease & Spectra WaveWriter ™ Visualization LithoVue ™ Single-Use SCS System Minimally invasive, single- Ureteroscope First platform to combine use digital Leading platform, next paresthesia and sub- cholangioscope gen technology, and perception therapies expanding globally Endo-Luminal Surgery Emerging alternative to Men’s Health & BPH Vercise ™ Deep Brain surgical resection; initial Greenlight XPS ™ Laser focus on GI tract cancers Stimulation Platform Therapy System 1 st directional system for Category leadership, Parkinson’s, dystonia, & Infection Prevention & market & geographic tremor globally Pathology Services expansion Solutions for Ambulatory Surgery Center market Women’s Health Additional investments Biliary Leadership Expanding portfolio for therapies in stroke and Leveraging clinical technologies & Alzheimer’s Disease innovations and core global footprint portfolio iterations 10