Mike Mahoney Chairman and Chief Executive Officer Safe harbor for - PowerPoint PPT Presentation

Mike Mahoney Chairman and 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 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. 2

Regulatory disclaimers Product Regulatory Disclaimer WATCHMAN FLX ™ CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale. ACURATE neo 2 ™ Self-Expanding Valve Platform Pending CE Mark. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale. Millipede Mitral Repair Technology Device under development. Not available for use or sale worldwide. LOTUS Mantra ™ Valve System Device under development. Not available for use or sale worldwide. EXALT ™ Model D Pending CE Mark. Not available for sale outside of the U.S. SpyGlass ™ Discover Device under development. Not available for use or sale worldwide. EXALT ™ Model B Device under development. Not available for use or sale worldwide. EXALT ™ Model Bx Device under development. Not available for use or sale worldwide. EXALT ™ Model TG Device under development. Not available for use or sale worldwide. SpyGlass ™ DS III Device under development. Not available for use or sale worldwide. PEG Scope Device under development. Not available for use or sale worldwide. iNod ™ Ultrasound Guided Needle Device under development. Not available for use or sale worldwide. 3

Financial disclaimers Market Estimates: Unless noted otherwise, all references to market sizes, market share positions, and market growth rates are BSX internal estimates. Non-GAAP Financial Measures: This presentation 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. Revenue Growth: All growth rates are operational unless otherwise noted. 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 electrophysiology business of C.R. Bard Inc., the Interventional Division of Bayer AG, the American Medical Systems male urology portfolio, EndoChoice Holdings, Inc., Symetis SA, NxThera, Inc., Claret Medical, Inc., Augmenix, Inc., Vertiflex, Inc. and BTG plc (BTG) in the periods for which there are no prior period related sales. Organic revenue growth also excludes the impact of the divestiture of our global embolic microspheres portfolio, a transaction entered into in connection with obtaining the antitrust clearances required to complete the BTG transaction. Medical Devices: We have three historic reportable segments comprised of Medical Surgical (MedSurg), Rhythm and Neuro, and Cardiovascular, which represent an aggregation of our operating segments that generates revenues from the sale of medical devices (Medical Devices). As part of our BTG acquisition, which closed on August 19, 2019, we acquired an Interventional Medicine business, which is now included in our Peripheral Interventions’ operating segment's 2019 revenues fr om August 19, 2019 through December 31, 2019. Specialty Pharmaceuticals: As part of our BTG acquisition, which closed on August 19, 2019, we acquired a Specialty Pharmaceuticals business (Spec Pharma). Subsequent to acquisition, Spec Pharma is a stand-alone operating segment presented alongside our Medical Device reportable segments. Spec Pharma net sales are substantially U.S. based. Our chief operating decision maker (CODM) reviews financial information of our globally managed Spec Pharma operating segment at the worldwide level without further disaggregation into regional results. As such, Spec Pharma net sales are presented globally, and our Medical Devices reportable segments regional net sales results do not include Spec Pharma. Emerging Markets: We define Emerging Markets as the 20 countries that we believe have strong growth potential based on their economic conditions, healthcare sectors and our global capabilities in our Medical Devices business. Periodically, we assess our list of Emerging Markets; effective January 1, 2019, we updated our list of Emerging Market countries. Our current list is comprised of the following countries: Argentina, Brazil, Chile, China, Colombia, Czech Republic, India, Indonesia, Malaysia, Mexico, Philippines, Poland, Russia, Saudi Arabia, Slovakia, South Africa, South Korea, Thailand, Turkey and Vietnam. The revision had an immaterial impact on prior year sales. 4

Our Mission and Values Boston Scientific is dedicated to transforming lives through innovative medical solutions that improve the health of patients around the world. Diversity & Meaningful High Global Winning Caring Innovation Performance Collaboration Spirit Inclusion 5

What to expect from BSX 2020+ 1. Highly engaged and driven team – patient-centric, motivated and innovative global culture 2. Continued execution of category leadership strategy and portfolio diversification into higher growth, adjacent markets 3. Compelling and differentiated pipeline driven by meaningful innovation 4. Commitment to corporate social responsibility and sustainable business models 5. Consistent, high performance to deliver shareholder value; long term financial goals for 6-9% organic revenue growth and margin expansion to drive double-digit adj EPS growth 6

Category leadership driving growth 2019 revenue 1 $10.7B, 11.1% op* growth, 7.3% organic* growth Interventional Cardiology Cardiac Rhythm Management (incl. Structural Heart) $2.8B, +11%, +10% $1.9B, +1% Electrophysiology Structural Heart $329M, +7% High end of $700-725M guidance 2 Peripheral Interventions Neuromodulation (incl. IM, excl. Spec Pharma) $873M, +13%, +7% $1.4B, +19%, +8% Endoscopy Urology & Pelvic Health $1.9B, +9% $1.4B, +15%, +8% Growth rates listed are operational*, organic* +Spec Pharma $81M 7 Endo, CRM and EP operational and organic growth rates are equivalent

Driving global expansion Building scale and capabilities Strong, balanced growth in every region Emerging Markets remain a key growth driver 2020+ LACA $0.4B, +7% +15% APAC $1.9B, +12% $1.25B, +19% 2019 US Revenue 1t $6.1B, +10% EMEA $2.3B, +9% 2 2019 2020E 2021E 2022E t Excludes Spec Pharma Growth rates are operational* 8

Track record of delivering high performance: Organic revenue growth Driving market share, entering new high growth segments and expanding geographic reach Est Organic* CAGR 6-9% Organic* CAGR 7% Organic* CAGR 6% Organic* CAGR (1%) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E- 1 2022E 9

Track record of delivering high performance: Operating margin improvement and EPS growth Delivering on adjusted operating Consistent double digit adjusted EPS* growth margin * expansion goals ’15 - ’19E CAGR: 14% Adj. operating margin* goal Adj. EPS* growth goal +DD% Y/Y $1.55- +50-100 $1.58 bps Y/Y 26- 26.25% $1.47 +11- 25.0% 25.5% 5 13% $1.26 +17% 24.1% $1.11 +13% 22.3% $0.93 +20% $0.84 20.2% $0.73 +11% $0.67 $0.66 19.2% 18.8% 18.9% +15% +10% (2%) (3%) 3 4 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2011 2012 2013 2014 2015 2016 2017 2018 2019E 3 2020E - 2022E - 2022E 10

Consistent portfolio diversification into higher growth markets BSX portfolio revenue mix High growth markets (≥8% CAGR): IC (Structural Heart), RM (EP), PI (Drug Eluting, Venous, $11B Therapeutic Oncology), NM, Endo (TIPs, Endoluminal ~35% Surgery), UroPH (Prostate Health) ~25% $8B $7B ~15% ~10% Moderate growth markets (3-7% CAGR): ~45% ~50% ~45% ~45% Endo (Core), PI (Core Arterial + Core Oncology), UroPH (Core), IC (Complex PCI), RM (ICM) Low growth markets (<3% CAGR): ~45% ~35% ~30% ~20% RM (Pacers, Defibrillators), IC (DES) 2012 2016 2019 1 2022E Served Market (~1%) ~4% ~5% ~6% Growth Excludes Spec Pharma 11