Credit Suisse Healthcare Conference. November 11, Dan Brennan, EVP & CFO

Transcription

1 Credit Suisse Healthcare Conference November 11, 2014 Dan Brennan, EVP & CFO 1

2 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 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 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

3 Disclaimers This presentation includes products that have not been approved or cleared by the U.S. Food and Drug Administration and are not available for sale in the U.S. All future product approval and launch dates are based on estimates of completion of regulatory submissions, review and approval or clearance, as well as other business considerations. For reconciliations of non-gaap financial measures used in these presentations to the most directly comparable GAAP figures, please refer to the Investor Relations section of our website at 3 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

4 An industry leader in large markets Rhythm Management $2.0B Cardiac Rhythm Management $1.9B MedSurg $2.2B Neuromodulation $454M Electrophysiology $155M Endoscopy $1.3B Cardiovascular $2.8B Interventional Cardiology $2.0B Urology & Women s Health $505M Peripheral Interventions $805M 2013 Revenue = $7.143B as reported 4 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

5 Building a winning foundation Building momentum: exceeding plans and expectations Competing in large global markets: challenging but opportunities exist Executing our strategic plan: accelerating sales and adjusted EPS growth Delivering meaningful innovation: developing a differentiated pipeline Leading globally: fostering a winning spirit 5 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

6 Financial goals: Consistent revenue & EPS growth BSC Financial Goals Above-market revenue growth Expanding operating margins Leveraged earnings growth Operational Revenue Growth* Adjusted Op. Margin* Investor Day Guidance Actual YTD Q3:2014 (2%) to 2% +2% +5% 18% to 19% 19% 20.1% +104bps Y/Y Strong cash flow Adjusted EPS* $0.64 to $0.70 $0.73 $ % Y/Y Consistency of results Adjusted FCF* Strong cash flow Strong cash flow $760M Source: BSC estimates. All numbers are Non-GAAP and exclude goodwill and other intangible asset impairment charges, acquisition and divestiture-related net credits, litigation, and restructuring-related charges, discrete tax items and amortization expense. For reconciliations of non-gaap financial measures to the most directly comparable GAAP figures, please refer to the Investor Relations section of our website at 6 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

7 Differentiated margin expansion opportunity Operating Margin* Expansion 30% 25% 20% 15% Grow revenue faster than market rates Launch new products with accretive margins Lean business initiatives and restructuring 10% Drive SG&A efficiencies 5% Reduce corporate infrastructure 0% 2013A 2017E Leveraged sales growth Goal of double digit EPS growth *Adjusted Operating Margin is non-gaap and excludes goodwill and other intangible asset impairment charges, acquisition and divestiture-related net credits, litigation, and restructuring-related charges, discrete tax items and amortization expense. For reconciliations of non-gaap financial measures to the most directly comparable GAAP figures, please refer to the Investor Relations section of our website at 7 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

8 Q3:14 results reflect progress Balanced revenue growth Cardiovascular +8%, Rhythm Management +7%, MedSurg +5% Y/Y* Interventional Cardiology +8%, CRM +4% Y/Y* Continued margin expansion Rhythm Management (CRM + EP) Adj. Op. Margin 14.1%, +160bps Y/Y BSX Adj. Op. Margin 20.5%, +120bps Y/Y Double digit adjusted EPS growth Adjusted EPS $0.20, +20% Y/Y *Growth rates are on a constant currency basis. Constant currency growth rates, adjusted operating margin, and adjusted EPS are non-gaap financial measures; for reconciliations of non-gaap financial measures to the most directly comparable GAAP figures, please refer to the Investor Relations section of our website at 8 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

9 Strategic imperatives align execution STRENGTHEN Execution to Grow Share EXPAND Into High Growth Adjacencies DRIVE Global Expansion FUND The Journey to Fuel Growth DEVELOP Key Capabilities Improved core growth Adjacencies to contribute meaningfully to growth Emerging markets to grow to 15% of revenue by 2017* Operating margin** projected to improve to 25% by 2017 New commercial capabilities to help teams deliver plan *Growth rates are on a constant currency basis. **Adjusted operating margin. Constant currency growth rates and adjusted operating margin are both non-gaap financial measures; for reconciliations of non-gaap financial measures to the most directly comparable GAAP figures, please refer to the Investor Relations section of our website at Source: BSC estimates 9 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

10 Innovating to drive share gains in core markets AUTOGEN X4 ACUITY X4 S-ICD World s smallest & thinnest devices Longevity advantage Promus PREMIER Next gen quad lead CE Mark US IDE trial enrolling Synergy Protection without touching the heart $100M revenue 2014E PRECISION SPECTRA Launched WW Enhanced delivery Premier outcomes Targeted 90-day drug & polymer absorption First 32-contact & multiple lead spinal cord stim. platform Caution: In the U.S., ACUITY X4 quadripolar LV leads, ACUITY PRO lead delivery system, and Synergy Everolimus-Eluting Platinum Chromium Coronary Stent System are investigational devices and not available for sale. 10 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

11 Market expansion with differentiated portfolio Watchman Lotus Deep Brain Stim Left Atrial Appendage Closure; CE Mark Goal H1:15 US Aortic valve repair Expanding in EU U.S. IDE trial enrolling 1M Americans with Parkinson s disease US IDE trial enrolling Rhythmia Alair Next gen mapping & navigation system Initial installs Q3:14 Treatment for severe asthma patients 420 sites WW Caution: In the U.S., the Watchman LAA closure device, the Lotus percutaneous valve and Vercise DBS system are investigational devices and not available for sale. 11 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

12 Driving global expansion BSC Revenue 2013 BSC Revenue 2017E U.S. 52% International ** 40% Emerging Markets 8% U.S. 46% International ** 39% Emerging Markets 15% Global operating units U.S. Local leadership 47% Focus on physician training Expanded product registrations 2013 EM revenue +20%* 2013 BRIC revenue +27% Y/Y* *Growth rates are on a constant currency basis. Constant currency growth rates are non-gaap financial measures; for reconciliations of non-gaap financial measures to the most directly comparable GAAP figures, please refer to the Investor Relations section of our website at **Excluding Emerging Markets. 12 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

13 Advancing science for life Mission: We are dedicated to transforming lives through innovative medical solutions that improve the health of patients around the world. Values: Caring Meaningful Innovation High Performance Global Collaboration Diversity Winning Spirit 13 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

14 Building a winning foundation Building momentum: exceeding plans and expectations Competing in large global markets: challenging but opportunities exist Executing our strategic plan: accelerating sales and adjusted EPS growth Delivering meaningful innovation: developing a differentiated pipeline Leading globally: fostering a winning spirit 14 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014

15 Advancing science for life Changing Lives Through Meaningful Innovation 15 Boston Scientific Credit Suisse Healthcare Conference November 11, 2014