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

37 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 cautioned n ot 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 tho se 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 foreign currency fluctuations. Organic growth rates are non-GAAP measures that exclude the impact of foreign currency fluctuations and the sales from the acquisitions of the American Medical Systems male urology portfolio, EndoChoice Holdings, Inc., Symetis SA, NxThera, Inc., Claret Medical, Inc. and Augmenix, Inc. in the periods for which there are no prior period related sales. 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. All financial estimates and other projections, including but not limited to pipeline, growth drivers, and investments, as well as other references throughout this document, unless otherwise noted, exclude the acquisition of BTG plc. 2

Regulatory Disclaimers Product Regulatory Disclaimer LUX Dx ™ 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. Cryterion Cryothermal Energy Platform Device under development. Not available for use or sale worldwide. DirectSense ™ Technology CE Marked. Not available for use or sale in the U.S. SAVAL ™ Drug eluting below-the-knee stent U.S. Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale. VICI ™ Venous Stent CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale. Ranger ™ Drug-Coated Balloon CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale. LOTUS Edge ™ Aortic Valve CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale. ACURATE neo ™ Self-Expanding Valve platform CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale. ACURATE neo2 ™ Pending CE Mark. Not available for use or sale in the U.S. WATCHMAN FLX ™ Pending CE Mark. Not available for use or sale in the U.S. DFR ™ Technology Device under development. Not available for use or sale worldwide. Vercise ™ PC DBS System and Cartesia ™ CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale. Directional Lead 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 High Global Caring Diversity Winning Spirit Innovation Performance Collaboration 4

What to Expect from BSX Strong track record of delivering high performance & strong shareholder value • Consistent diversification into high growth markets • Compelling and differentiated pipeline via organic investments + M&A • Consistent top tier revenue performance • Double-digit EPS growth via differentiated margin expansion & strong free cash flow • 5

Boston Scientific At-A-Glance 2018 Revenue 1 and Operational* Growth 1 : (Total company: $9.8B, 8%; Organic* Growth 1 7%) LACA $0.4B, +16% Urology & Pelvic Health $1.2B, +11% Interventional APAC t Cardiology $1.7B, +7% $2.6B, +7% Endoscopy Above Market Strong Growth $1.8B, +8% Growth in US in Every Region Most Segments $5.5B, +7% Peripheral EMEA t Interventions NM $2.2B, +9% $1.2B, +9% $0.8B, +23% EP Cardiac Rhythm $0.3B, +11% Management $2.0B, +2% 6

Track Record of Delivering High Performance Adjusted Operating Revenue Adjusted EPS* Margin* Reported revenue, Y/Y operational* growth Adj. operating margin* goal Adj. EPS* growth goal Y/Y organic* growth rates +DD% +50-100 +7-10% Operational* revenue growth goal Y/Y bps Y/Y $1.38- CAGR 25.5- $1.40 25.75% $9.8 25.0% $1.26 +10% $9.0 24.1% +8% -11% $1.11 $8.4 +13% +8% +7% $7.5 22.3% $7.4 +12% $0.93 +7% +20% +8% $0.84 +6% +10% 20.2% +5% +11% +4% +15% 1 2014 2015 2016 2017 2018 2019E 2014 2015 2016 2017 2018E 2019E 3 2014 2015 2016 2017 2018E 2019E 3 - 2020E - 2020E - 2020E Sales growth consistently > mkt Delivering on margin Consistent double digit adj. EPS* CAGR ’15 - ’18E: 9% operational* & expansion goals growth: CAGR ’15 - ’18E: 14% 8% organic* 7

Continued Diversification into Faster Growth Markets Estimated Market Growth Rates High Growth Mkt (≥10% CAGR): NM (SCS, DBS), Structural Heart (TAVR, LAAC, Embolic Protection), EP, PI (Drug Eluting, Venous, Y90 4 ), Endo (Endoluminal Surgery, Single-use Scopes), Uro (Prostate Cancer, MIS BPH) Moderate Growth Mkt (4 - 9% CAGR): Endo (Core), PI (Arterial Core + Core Oncology), UroPH (Core), IC (Complex Coronary) Low Growth Mkt (≤3% CAGR): Pacer, Defibrillators, DES 2021E Revenue Mix 2013 Revenue Mix 2018 Revenue Mix $7B $10B 1 High Low Low Growth Growth High Growth ~40% Growth ~35% Low ~30% High ~20% Growth Growth ~10% ~20% Moderate Moderate Moderate Growth Growth ~50% Growth ~50% ~45% ~3% Served Market ~5% ~6-7% Y/Y Growth 8

Expanding into High Growth Markets Approaching ~$20B 2018E Market Growth Accelerators Sales 2 2022E • LAAC Global Expansion (WATCHMAN ™ ) • TAVR (ACURATE neo ™ , LOTUS Edge ™ ) & IC: Structural Heart $475M+ ~$8B Embolic Protection • Mitral Repair Technologies • Drug-eluting (ELUVIA ™ DES, Ranger ™ DCB) • Therapeutic Oncology 4 Peripheral Interventions ~$75M ~$2.5B • Venous Stenting & Pulmonary Embolism 4 • Single Shot Cryo & RF Defib • HeartLogic ™ Heart Failure Alert Rhythm Management ~$2.5B +7% • Diagnostics • DBS for Parkinson’s Disease and Tremor Neuromodulation +80% ~$1B • Other DBS indications 2023+ • Endoluminal Surgery Endoscopy <$200M ~$2.5B • Infection Prevention and Pathology • Therapeutic Imaging • Visualization (Flex scope & FMS) Urology & Pelvic Health ~$75M ~$3.5B • Cancer (nVision, SpaceOAR ™ ) • Overactive Bladder <$1B ~$20B 9

Multiple Sources of Innovation Drive Compelling Pipeline Adjusted R&D* Spend & Recent Business Strategic Investments & Percent of Sales Development Partnerships Active venture capital portfolio • – 40+ investments in mixed stages 10.5-11% 3 of opportunity $1.1B 5 – 4 equity investments converted 10.8% into acquisitions in 2018 10.9% $1.0B Multiple incubators + spin outs • Strategic partnerships $0.9B • 4 2016 2017 2018E 4 Tsinghua University 10