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36th Annual JP Morgan Healthcare Conference
Mike MahoneyChairman & Chief Executive Officer
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 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.
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.
3
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.
Ranger™ Drug-Coated BalloonCE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale.
Drug Eluting Stent – Below-the-knee indication Device under development. Not available for use or sale worldwide.
Eluvia™ Drug eluting self-expanding SFA stentCE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not 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.
ACURATE™ Self Expanding Valve PlatformCE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale.
WATCHMAN™ FLX Pending CE Mark. Not available for use or sale in the U.S.
4
Our Mission and Values
CaringMeaningful Innovation
High PerformanceGlobal
CollaborationDiversity Winning Spirit
Boston Scientific is dedicated to
transforming lives through innovative
medical solutions that improve the health
of patients around the world.
5
What to Expect from BSX
• Track record of delivering revenue and EPS growth faster than peer group
– Q4 2017 sales growth1: 8% operational*, 7% organic* vs Q4 2016 organic* comp of 10%
– FY 2017 sales growth1: 8% operational*, 7% organic* vs FY 2016 organic* comp of 10%
– FY 2017 profitability and EPS2: +100 bps adj. OM*, +11-14 adj. EPS growth*
– 2015-2017E: organic revenue* CAGR1 +7% and adjusted EPS CAGR2 +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
6$0.3B, +14%
Boston Scientific At-A-Glance
2017 Revenue1 and Operational Growth1*: (Total company: $9.0B, 8%; Organic Growth* 7%)
Rhythm Management
Interventional Cardiology
Structural Heart
Peripheral Interventions
$2.4B, +6%
$1.1B, +7%
$275M+2
CRM Electrophysiology
$1.9B, +2%
Endoscopy
Urology & Pelvic Health
Neuromodulation
$1.6B, +12%
$0.6B, +14%
$1.1B, +12%
7
Reported Revenue, Y/Y operational* growth
Y/Y Organic* growth rates
18.9%
20.2%
22.3%
24.1%
2013 2014 2015 2016 2017E
25% –25.25%
$7.1
$7.4 $7.5
$8.4
$9.0
2013 2014 2015 2016 2017
+2%+6%
+8%
+12%
+8%
+4%+5%
+10%
+7%
$0.73
$0.84
$0.93
$1.11
2013 2014 2015 2016 2017E
+11%
+15%
+11%
+20%
+11%-14%
$1.24 -$1.27
High Performance Culture and Track Record
Adjusted EPS*RevenueAdjusted Operating
Margin*
Sales growth consistent > mkt
7% organic CAGR ’15-’17E
Delivering on margin
expansion goals
Consistent double digit EPS growth:
14-15% CAGR ’15-’17E
1 2 2
8
Diversified in Large Global Markets While Investing
in Higher Growth Segments
Business2017E
Market Size
2017E
Market
Growth
2020E
Market Size
’17 - ’20E
Market
CAGRKey Investment Areas, New Markets
Ca
rdio
va
scu
lar
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
Rh
yth
m
Mg
mt.
CRM + Diagnostics $10B 1% $10B 0-2% S-ICD/Leadless, Diagnostics, Heart Failure
EP $4B 12% $6B 9-11% Mapping, Navigation, Therapeutic Solutions
Me
dSu
rg
Endoscopy $5B 5% $6B 5-6% Endo-Luminal Surgery, Visualization, Pulmonary
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
9
2017
Sales1Market
~ 2021EGrowth Accelerators
$275M+ ~$6B• WATCHMAN global expansion• ACURATE – TAVR • LOTUS – TAVR
~$50M ~$2B• Visualization• Cancer• Overactive Bladder
~$50M ~$2B
• Pathology • Infection Prevention
• Endo-Luminal Surgery
40%+
growth~$1B
• DBS for PD, Tremor• Other indications 2020+
~$50M ~$2B
• Eluvia – DES• Ranger – DCB • Critical Limb Ischemia (CLI)
IC: TAVR + LAAC
PI Drug Eluting
Endo new markets
Uro/PH new markets
Neuromod - Brain
~$15B<$500M
--- ~$2BRhythm Management
• Apama RF PVI Balloon for AFib• Implantable Cardiac Monitor (ICM)
• HeartLogic™ Heart Failure Alert
Expanding Today into Multiple New High Growth
Markets That Approach ~$15B 2021E
10
Urology and
Pelvic HealthNeuromodulation Endoscopy
Vercise™ Deep Brain
Stimulation Platform1st directional system for
Parkinson’s, dystonia, &
tremor globally
Spectra WaveWriter ™
SCS SystemFirst platform to combine
paresthesia and sub-
perception therapies
Additional investments for therapies in stroke and
Alzheimer’s Disease
Biliary LeadershipLeveraging clinical
innovations and core
portfolio iterations
Endo-Luminal Surgery Emerging alternative to surgical resection; initial focus on GI tract cancers
SpyGlass DS™
VisualizationMinimally invasive, single-
use digital
cholangioscope
Women’s Health Expanding portfolio
technologies &
global footprint
Men’s Health & BPH
Greenlight XPS ™ Laser
Therapy SystemCategory leadership,
market & geographic
expansion
Stone Disease &
LithoVue™ Single-Use
UreteroscopeLeading platform, next
gen technology, and
expanding globally
MedSurg:
Category Leadership & Growth Drivers
Infection Prevention &
Pathology ServicesSolutions for Ambulatory
Surgery Center market
11
Cardiovascular:
Category Leadership & Growth Drivers
Peripheral
Interventions
Interventional
CardiologyStructural Heart
Complex PCIMultiple new product
launches in key
growth areas
Synergy™ &
line extensionsContinued DES
leadership
Polaris™: IVUS &
Comet™ FFRGlobal leader in IVUS and
expanding into FFR
market
Mitral Valve
Replace & RepairFuture focus area
TAVR Portfolio• ACURATE AS ™ supra-
annular , top-down
deployment
• LOTUS Edge™ intra-
annular, fully reversible
Watchman™
LAAC DeviceExpanding utilization &
market indications
Interventional OncologyPortfolio additions +
significant opportunity in
Emerging Markets
AngioJet Zelante ™ DVT
CatheterFoundation for complete
venous portfolio
Comprehensive Drug-
eluting Technologies• Eluvia ™ DES built
for the SFA
• Ranger ™ DCB
• Pursuing DES for CLI
12
Rhythm Management:
Category Leadership & Growth Drivers
ElectrophysiologyCore CRM Diagnostics
Emblem™ MRI S-ICD Continued positive
outcomes and ongoing
clinical science
Resonate ™ HV FamilyNext gen platform
compatible with
HeartLogic™ plus
EnduraLife, MSP and MRI
mCRM ™
Modular CRM:
EMBLEM™ S-ICD with
EMPOWER™ leadless
pacer
Connected PatientsPortfolio of cardiac
monitoring products and
services
Implantable Cardiac
Monitor Developing arrhythmia
monitoring device
HeartLogic™
Drive share with 70%
sensitivity in detecting HF
events at median 34
days prior to event
Apama RF PVI Balloon
Catheter SystemDifferentiated, multi-
electrode, single shot RF
therapy for pulmonary
vein isolation
Therapeutic Catheters• DirectSense™
technology
• Force Sensing
technology
Rhythmia™ HDxSecond gen mapping &
navigation platform
13
Strong Product Pipeline Supports
Long Range Plan Growth Targets
2020E / 2021E
Coronary Therapies
• Synergy DES line extensions
Structural Heart
• WATCHMAN FLX – U.S.
• ACURATE neo AS – U.S./Japan
• ACURATE – size matrix expansion
• **LOTUS size matrix expansion
Peripheral Interventions
• Ranger SFA DCB – U.S.
• Drug eluting stent – Critical Limb Ischemia
CRM/EP
• Leadless Pacing/modular CRM – EU
• Force Sensing Catheter – U.S.
Endo
• EUS Guided Pulmonary BX – U.S./EU
• Axios expanded Indications – U.S.
Urology/Pelvic Health
• Multiple launches in Stone
• Multiple launches in Men’s Health
• Next Gen Greenlight fiber for BPH
NMD
• SCS & DBS Next Gen – U.S./EU
2018E 2019E
Coronary Therapies• Synergy DES line extensions• Multiple launches in Complex PCI
Structural Heart• WATCHMAN FLX – EU• WATCHMAN – Japan• ACURATE – Int’l expansion• **LOTUS U.S. & EU
Peripheral Interventions• Eluvia SFA DES - U.S.
• Interventional Oncology Embolic Coils
CRM/EP• ICM Monitoring & Dx• Force Sensing Catheter – EU• Apama RF PVI Balloon – EU
Endo• SpyGlass Next Gen
Urology/Pelvic Health• LithoVue Next Gen • 5 additional launches in Stone
Neuromodulation• Expanded DBS platform
Coronary Therapies
• 5 launches in Complex PCI
Structural Heart
• ACURATE – OUS Expansion
• ACURATE neo AS – EU
CRM/EP
• Resonate with HeartLogic HF Alert
• Rhythmia HDx w/ LUMIPOINT ™
• DirectSense Rx Catheter – EU/U.S.
Endoscopy
• Endo-Luminal Surgery tools
• Axios Transluminal Stent – Japan
Urology/Pelvic Health
• 4 launches in Stone
Neuromodulation
• WaveWriter SCS System
• Vercise DBS system – U.S.
**Intend to launch Lotus in the U.S. & EU in 2019 pending final testing & regulatory approvals
14
Estimated Market Growth Rates
Diversified and Durable Growth Profile
Low
Growth
35%
Moderate
Growth
50%
Low
Growth
46%
Moderate
Growth
47%
2017 Revenue Mix1
$9.0B2020E Revenue Mix2012 Revenue Mix
$7.2B
High Growth Mkt (10%+ CAGR): SCS, TAVR, LAAC, EP, DBS, PI Drug Eluting, ICM
High
Growth
7% High
Growth
15%
Low
Growth
25%
Moderate
Growth
50%
High
Growth
25%
Low Growth Mkt (0 - 3% CAGR): Pacers, Defibrillators, DES
Moderate Growth Mkt (4 - 9% CAGR): Endo, UroPH, PI (ex DES & DCB), Int. Oncology, IC (ex. SH, DES)
15
Emerging Markets
Partnerships
China & India:
Partnerships & VC investments
Latin America:
Expanding access
Emerging Markets Estimated to Exceed $1B
in 2018 and Drive ~150bps Growth thru 2020E
2013 2017E 2020E
$625M
$900M
$1.4B
Emerging Markets
Operational Revenue*
Emerging Markets Growth
Drivers & Key Capabilities
• Global orientation
• New launches, portfolio
registration
• Expanding commercial
capabilities
• Portfolio diversification
• New R&D and physician training
capabilities
• New Malaysia manufacturing and
distribution facility
Tsinghua
University
CardioYASeguridad y calidad, de corazón
1
16
Compelling opportunity beyond 2020 for 30%+ adjusted OM*
2013 2014 2015 2016 2017E2 2020E
25%-
25.25%24.1%
30+%
22.3%
20.2%
18.9%
~+300 bps
SG&A productivity
Accretive new products
Launches & commercial scale
of key products
R&D efficiencies
5-10% annual standard cost improvements
Track Record of Driving Operating Margin Expansion
AND Significant Future Opportunity
28%
Longer Term Goal
17
Strong Cash Flow Generation Outlook
AND Limited Reserved Contingencies 2018-2020E
Strong Free Cash Flow*: 2016-2020EImproved Ability to Deploy
Cumulative Free Cash Flow*
** Based on adjusted free cash flow. Refer to non-GAAP reconciliations
80% 90%
2015-2017E: ~$4.8B
2018E-2020E: ~$6.3B
10%
Reserved Contingencies**
M&A or Returning Cash to Shareholders
20%10%
2016 2017E 2018E 2019E 2020E
$1.6B
~$1.75B
~$1.9B
~$2.1B
~$2.3B
18
Post Tax Reform
Estimated Effective Tax Rate*
2017E 2018E 2019E 2020E 2023E
Tax Reform Impact Brings Greater Financial Flexibility
AND Increased Earnings Power
Full access to OUS cash
All estimated tax rates are adjusted and exclude discrete tax items, such as the benefit related to adoption of ASU 2016-09
• Greater financial flexibility
• Increased earnings power
Pre Tax Reform
Expected Effective Tax Rate*
Full access to OUS cash
through 2018
Partial access to OUS cash 2019+
15%16%
17%
20%
2017E 2018E 2019E 2020E 2023E
14%
Expected increase of 100 bps
per year for access to OUS cash
14%
~16%~15%
19
2017E2015-2017E
CAGRGoals2018E
Goals2019 & 2020E
2018E-2020ECAGR
Organic Revenue* 7% 1 +7% +5-6% +5-8% +5-8%
OperationalRevenue*
8% 1 +9% -- Est. additional +100 bps -- +6-9%
Adjusted Op. Margin*
25%-25.25% 2~175 bps
Improvement annually
+50-75bps
w/MDET repeal
+~25bps
w/MDET reinstated
~100+ bps
Improvement annually28% in 2020
Effective Tax Rate* 14% 2 ~16% ~15%
Adjusted EPS* Growth 11%-14% 2 +14-15%
Consistent and Strong Financial Outlook
-------Double digit goal --------
20
What to Expect from BSX
• Track record of delivering revenue and EPS growth faster than peer group
– Q4 2017 sales growth1: 8% operational* , 7% organic* vs Q4 2016 organic* comp of 10%
– FY 2017 sales growth1: 8% operational*, 7% organic* vs FY 2016 organic* comp of 10%
– FY 2017 profitability and EPS2: +100 bps adj. OM*, +11-14 adj. EPS growth*
– 2015-2017E: organic revenue* CAGR1 +7% and adjusted EPS CAGR2 +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
21
Recent Awards and Recognitions Reflect
Winning Spirit Culture that Drives Results
Recognized for progressive life/work
policies and programs
Ranked #35 based on employee ratings
Ranked #16 in the U.S.Ranked #3 on U.S. Large
Company list
Scored 100% for the 4th consecutive year
Scored 100% for the 2nd year in a row
Highest recognition for Guard/Reserve
employee support
Ranked 6th inindustry category
22
Appendix A
Detailed Growth Drivers by Business
23
Endoscopy:
Category Leadership & Growth Drivers
Overview BSX Growth Drivers
• Cholangioscopy accelerationSpyGlass DS is the first and only minimally invasive, single use,
single operator digital cholangioscope
• GI-focused pathology solutionsGI specialized pathology services and dedicated
commercial team servicing $600M ASC opportunity
• Infection prevention expansionEnhanced safety for patients and healthcare providers in
$775M global market
• Endo-Luminal Surgery replacing open proceduresSafer, less costly, minimally invasive alternatives to traditional
surgery• Growing leadership in Endoscopic Ultrasound (EUS) therapeutics
Portfolio expansion and new indications for Axios, the world’s
first transluminal stent
Market Size (2017E)
~$3B
Market Growth (2017E)
+5%
2017-2020 est. CAGR
+5%-6%
BSX 20171
Operational Growth*+12%
Share Position #1
24
Urology and Pelvic Health:
Category Leadership & Growth Drivers
Overview BSX Growth Drivers
• Innovate across all franchises
Add to our core portfolio along with developing clinical and
economic evidence; evolve commercial model to meet
demands of global healthcare market
• Expand globally
Lead with stone portfolio to gain critical mass and
commercial presence; then selectively launch additional
franchises in regional markets
• Enter attractive adjacent markets
Evolve our portfolio with new adjacencies and tools that
add value beyond our current portfolio, differentiated by
excellent medical education
Market Size (2017E)
~$3.5B
Market Growth (2017E)
+5%
2017-2020 est. CAGR
+5%-6%
BSX 20171
Operational Growth*+12%
Share Position #1
25
Neuromodulation:
Category Leadership & Growth Drivers
Overview BSX Growth Drivers
• Spectra Wavewriter ™ SCS System
First and only SCS system able to combine paresthesia and
sub-perception therapies
• Comprehensive SCS Platform with MultiWave ™
Personalized therapy with neural targeting algorithm
(Illumina 3D ™) and lead portfolio
• Cosman RF Ablation
Treatment options for pain patients
• Vercise ™ Deep Brain Stimulation Platform
First MICC-based directional system
• International expansion
Under-penetrated market opportunity in both pain and brain
Market Size (2017E)
~$2.5B
Market Growth (2017E)
+14%
2017-2020 est. CAGR
+10%-15%
BSX 20171
Operational Growth*+14%
Share Position #2
26
Coronary Therapies:
Category Leadership & Growth Drivers
Overview BSX Growth Drivers
• Coronary Therapies
Diversify coronary revenue to higher growth, less price
sensitive product lines through portfolio execution
• Stents
Protect DES leadership position with tiered portfolio and
Synergy line extensions
• Complex PCI
Multiple launches of new Complex PCI specialty products
• PCI Guidance
Expand footprint into $400M FFR market and maintain
leadership in IVUS
Market Size (2017E)
~$7.5B
Market Growth (2017E)
+1%
2017-2020 est. CAGR
+0%-1%
BSX 20171
Operational Growth*
+6%(including SH)
Share Position #1
27
Structural Heart:
Category Leadership & Growth Drivers
Overview BSX Growth Drivers
• Watchman™ LAAC Device
Expanding market with excellent outcomes, therapy
development and expanding indications
• ACURATE neo™ Aortic Valve System
Global expansion through commercial integration, a
unique feature set and outstanding clinical outcomes
• LOTUS Edge™ Aortic Valve System
Differentiated TAVR platform providing complete control
and lowest PVL
• Mitral Replace and Repair
Expand valve portfolio into $3B potential new market
opportunity
Market Size (2017E w/Mitral)
~$4B
Market Growth (2017E)
+21%
2017-2020 est. CAGR
+15%-20%
Share Position #3
28
Peripheral Interventions:
Category Leadership & Growth Drivers
Overview BSX Growth Drivers
• Drug Eluting Technologies for PAD
Differentiated portfolio backed by unparalleled clinical
program
• Expanding Interventional Oncology Solutions
Significant opportunity in Emerging Markets
• Complete Deep Venous Portfolio
Large, underpenetrated market
• Critical Limb Ischemia
Only company pursuing DES Below The Knee
• Breadth of portfolio across disease states
Mindshare with physicians and contracting advantage
Market Size (2017E)
~$6B
Market Growth (2017E)
+6%
2017-2020 est. CAGR
+6%-8%
BSX 20171
Operational Growth*+7%
Share Position #1
29
Cardiac Rhythm Management:
Category Leadership & Growth Drivers
Overview BSX Growth Drivers
• RESONATE ™ HV Family of Devices
Next gen platform with HeartLogic™ Heart Failure Alert,
MRI, MSP (CRT-D), and EnduraLife
• HeartLogic Heart Failure Alert
Drive share with diagnostic that offers 70% sensitivity in
detecting HF events at median 34 days prior to event
• EMBLEM™ MRI S-ICD
First and only S-ICD with continued positive outcomes and
ongoing clinical science
• mCRM™ (modular CRM)
EMBLEM ™ S-ICD with EMPOWER ™ leadless pacer
• Implantable Cardiac Monitor
Diagnostic-only device – target launch H1:2019E
Market Size (2017E)
~$10B
Market Growth (2017E)
1%
2017-2020 est. CAGR
0%-2%
BSX 20171
Operational Growth*+2%
Share PositionWW #3
US #2
30
Electrophysiology:
Category Leadership & Growth Drivers
Overview BSX Growth Drivers
• RHYTHMIA HDx ™ System
Second gen Mapping and Navigation system
Rhythmia HDx with LUMIPOINT ™ software module
• Navigation and MiFi Ablation Catheters
Full portfolio of navigation and non-navigation enabled
therapeutic catheters
• DirectSense™ Technology
Launching now in Europe and H1:2018E in the US
• Force Sensing Technology
Expands therapeutic portfolio in $800M market opportunity –
EU launch 2019E
• Apama RF PVI Balloon Catheter System
Differentiated, multi-electrode single shot RF therapy to
address fast growing ~$500M market
Market Size (2017E)
~$4B
Market Growth (2017E)
+12%
2017-2020 est. CAGR
+9%-11%
BSX 20171
Operational Growth*+14%
Share Position #4
31
Appendix B
References and Non-GAAP Reconciliations
32
References
*Non-GAAP measure; for reconciliations of non-GAAP financial measures to the most directly comparable GAAP figures, please
refer to Appendix A of this document.
1Based on preliminary, unaudited sales results issued January 9, 2018
2Based on guidance issued October 26, 2017
33
Supplemental Non-GAAP Disclosures
(Low) (High) (Low) (High)
Estimated GAAP EPS $0.71 $0.75 180% 196%
Estimated acquisition-related net charges 0.01 0.00
Estimated restructuring and restructuring-related charges 0.06 0.06
Estimated amortization expense 0.35 0.35
Investment impairment charges 0.02 0.02
Litigation-related charges 0.09 0.09
Estimated Adjusted EPS $1.24 $1.27 11% 14%
Less: Estimated impact of foreign currency fluctuations -0.08 -0.07 -7% -7%
Estimated Adjusted EPS, excluding FX $1.32 $1.34 18% 21%
Full Year 2017 Estimate Estimated Growth
Revenue Growth Q4 20171 Q4 2016
Revenue growth, as reported 9.9% 11%
Less: Impact of foreign currency fluctuations 1.8% 0%
Operational Revenue Growth 8.1% 11%
Less: Impact of significant acquisitions 3.0% 1%
Organic Revenue Growth 6.8% 10%
Revenue Growth 2015-20171 (CAGR) 20171 2016 2015 2014 2013
Revenue growth, as reported 7% 7.9% 12% 1% 3% -1%
Less: Impact of foreign currency fluctuations -2% 0.1% 0% -7% -3% -3%
Operational Revenue Growth 9% 7.8% 12% 8% 6% 2%
Less: Impact of significant acquisitions 2% 1.2% 2% 3% 2%
Organic Revenue Growth 7% 6.6% 10% 5% 4%
34
Supplemental Non-GAAP Disclosures
35
Supplemental Non-GAAP Disclosures
Interv entional Cardiology 6.2% 0.1% 6.1%
Peripheral Interv entions 6.5% -0.1% 6.6%
Cardiovascular 6.3% 0.0% 6.3%
Cardiac Rhythm Management 2.5% 0.2% 2.3%
Electrophysiology 14.5% 0.1% 14.4%
Rhythm Management 3.9% 0.2% 3.7%
Endoscopy 12.4% 0.1% 12.3%
Urology & Pelv ic Health 11.8% 0.2% 11.6%
Neuromodulation 14.2% 0.1% 14.1%
MedSurg 12.5% 0.1% 12.4%
Total Company 7.9% 0.1% 7.8% 1.2% 6.6%
Revenue (in billions ) As Reported Less: FX Impact Operational*
Total Company 9.0 -0.1 9.1
FY2017 Preliminary / Unaudited Net Sales
FY2017 Preliminary / Unaudited Net Sales Growth as compared to FY2016
As Reported
Less: Impact of Foreign
Currency Operational*
Less: Impact of
Significant Acquisitions Organic*
36
Supplemental Non-GAAP Disclosures
Emerging Markets Revenue (in millions) 2013
Revenue, as reported 589$
Less: Impact of foreign currency fluctuations (36)
Operational Revenue 625$
Emerging Markets Revenue (in millions) 2017E
Estimated Revenue, reported 917$
Less: Impact of foreign currency fluctuations (8)
Estimated Operational Revenue 925$
Emerging Markets Revenue (in billions) 2020E
Estimated Revenue, reported 1.4$
Less: Impact of foreign currency fluctuations -
Estimated Operational Revenue 1.4$
Emerging Market Revenue CAGR 2017E-2020E 15%
37
The following is an explanation of the adjustments that management excluded from GAAP measures to calculate the following forward-looking non-GAAP financial measures:
Adjusted Gross Margin: Excludes from GAAP gross margin the impacts of forecasted acquisition- and divestiture- and restructuring-related charges or credits.
Adjusted SG&A: Excludes from GAAP SG&A the impacts of forecasted acquisition- and divestiture- and restructuring-related charges or credits.
Adjusted R&D: Excludes from GAAP R&D the impacts of forecasted acquisition- and divestiture- and restructuring-related charges or credits.
Adjusted Operating Margin: Excludes from GAAP operating margin the impacts of forecasted acquisition- and divestiture-and restructuring- and restructuring-related charges or credits, and amortization expense.
Adjusted Tax Rate: Excludes from GAAP tax rate the tax impacts related to forecasted acquisition- and divestiture- and restructuring- and restructuring-related charges or credits, and amortization expense.
Adjusted Free Cash Flow: Adjusts GAAP operating cash flow to include the impacts of forecasted capital expenditures and excludes the impact of estimated after-tax acquisition- and divestiture-, restructuring- and litigation-payments.
Please refer to our Safe Harbor for forward-looking statements disclosure in conjunction with any forward looking information presented within.
Supplemental Non-GAAP Disclosures
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