Boston Scientific Corporation · NYSE:BSX
Boston Scientific — Investor Day (September 2023)
144 slides from Boston Scientific's investor day presentation, Sep 20, 2023
Slide 1: 2023 Investor Day
2023 Investor Day September 20, 2023
Slide 2: Welcome Video
Boston, Welcome Video Scientific Advancing science for life™ — At Boston Scientific, = we're tackling the biggest health cat issues of today -
Slide 3: Welcome
Welcome Lauren Tengler, Vice President, Investor Relations
Slide 4: Safe harbor for forward-looking statements
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,"
Slide 5: Regulatory disclaimers
Regulatory disclaimers ACURATE PRIME valve platform U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale. ACURATE neo2 valve platform CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investiga
Slide 6: Financial disclaimers
Financial disclaimers Market Estimates: Unless noted otherwise, all references to market sizes, market share positions, and market growth rates are BSX internal estimates. Unless noted otherwise, all references to market sizes represent 2023 estimates and all references to market growth rates repres
Slide 7: Agenda
Agenda TIME TOPIC 1 8:30 – 9:00am Opening | Strategy 2 9:00 – 11:00am Medsurg | Peripheral Interventions |China 3 11:00 –1:00pm Cardiology | Finance 4 1:00 – 1:30pm Casual Lunch 7
Slide 8: Strategic Overview
Strategic Overview Mike Mahoney, Chairman and Chief Executive Officer
Slide 9: Our Mission + Values
Our Mission + Values Boston Scientific is dedicated to transforming lives through innovative medical solutions that improve the health of patients around the world. Caring Global Collaboration Meaningful Innovation Diversity High Performance Winning Spirit
Slide 10: 2023 delivering high performance across all businesses and regions
2023 delivering high performance across all businesses and regions H1 2023 reported revenue and operational* growth vs. 2022 Total Company: LACA H1:23 Results $0.3B, B Urology $7.0B C +19% .6 $1.0B, +12% Organic* growth: $2 APAC .9B ar +13% vs. 2022 dio urg l $2 $1.2B, +20% US vasc MedS $4.1B Intern
Slide 11: What to expect from BSX: 2024-2026
What to expect from BSX: 2024-2026 Next level performance Strong and differentiated financial performance over the 3 year period – Organic* sales CAGR of 8-10%, above historical growth bolstered by key market launches – +150bps of adjusted operating margin* expansion, strong double digit adjusted EP
Slide 12: Track record of sales growth acceleration
Track record of sales growth acceleration Reported net sales, organic* growth rate Organic* revenue growth goal NEXT LEVEL performance +8 - 10% CAGR Below market growth Above market growth Differentiated Launches Consistent above market growth Reshaped culture & portfolio despite COVID +7% +7% +10 –
Slide 13: Differentiated financial performance
Differentiated financial performance Consistently balances our accelerating growth and increased profitability Adjusted Operating Margin* Adjusted EPS* Adjusted FCF* Adj. op margin*, final year of period Adj. EPS*, final year of period Free Cash Flow*2, final year of period Adj. op margin* goal Adj.
Slide 14: Consistently increasing our WAMGR
Consistently increasing our WAMGR Through strategic portfolio planning, innovation and M&A BSX portfolio revenue mix: broad exposure to faster growth markets BSX Revenue High growth markets (>7% CAGR): ~45% ICTx (cPCI, DCB, SHV), WM, EP, PI (IO, Drug-eluting, ~$14B Venous), NM (Brain), Endo (ELS, S/
Slide 15: Innovation fuels growth today and next level performance in future
Innovation fuels growth today and next level performance in future Partnerships Research & Development Enabling localization Invest at high end of and augmenting peer group, leverage 2023E Innovation portfolio global footprint Metrics Pe rspe ctive and Ap pr ~90 al o New products launched ob ac Gl 3
Slide 16: Differentiated and robust pipeline enhances our category leadership
Differentiated and robust pipeline enhances our category leadership Key Growth Drivers 2024E-2026E Potential Growth Drivers 2026E+ ACURATE Circ VC NG ICTx AVVIGO + Agent Prime Support VC SHV Investments SHV Watchman CHAMPION NG WM FLX Pro TruSteer & OPTION LAAOS IV WM Watchman Cardiology VC EP POLAR
Slide 17: Disciplined and active M&A
Disciplined and active M&A Supports category leadership and entry into high-growth markets M&A Strategy Tuck-in playbook applied across all business units Tuck-in M&A that reinforces ICTx + WM category leadership and entry into high-growth adjacencies Cardio EP Disciplined approach requiring both st
Slide 18: Playing to win over the long term
Playing to win over the long term Investing today for differentiated growth & WAMGR expansion beyond LRP Cardiology PI Endo Uro NM Heart Failure Cancer / Y90: Endoluminal Heart Failure Diagnostics GBM Surgery Urologic Prostate Deep Brain Cancers Atrial Fibrillation – PFA Endobariatrics / Stimulation
Slide 19: Advancing to next level innovation, capabilities and financials
Advancing to next level innovation, capabilities and financials over long-range plan +8 – 10% +150bps +DD ~70% Organic* Revenue Adj. op margin* Annual adj. FCF conversion* CAGR expansion by 2026 earnings per share* in 2026 growth Financial metrics represent goals over long-range plan (2024E – 2026E)
Slide 20: Medsurg
Medsurg Art Butcher, Executive Vice President and Group President, Medsurg & APAC
Slide 21: Unlocking unique value for BSX
Unlocking unique value for BSX M E D S U R G Urology Endoscopy Neuromodulation Asia Pacific $1.8B $2.2B $917M $2.1B 2022 Revenue 2022 Revenue 2022 Revenue 2022 Revenue $4.5B 7% $6B 7% $3.6B 6-7% 12.4% 2022 Growth* ‘23 Market ’24E –’26E ‘23 Market ’24E –’26E ‘23 Market ’24E –’26E CAGR CAGR CAGR Well
Slide 22: Digital and AI capabilities
Digital and AI capabilities Driving synergistic value across the enterprise Omnichannel eCommerce ExpertLink • New customer-centric programs that • Scalable, self-service purchasing • Broad portfolio of technologies that modernize our sales and marketing platform that drives efficiencies for enable
Slide 23: Neuromodulation
Neuromodulation Jim Cassidy, Senior Vice President and President, Neuromodulation Jesse Feinkind, Vice President and General Manager, Global Pain Therapies 23
Slide 24: Neuromodulation
Neuromodulation Growth through innovation across Pain and Brain Significant opportunity within large, underpenetrated markets today, with high-growth adjacencies Pain therapies: leading portfolio of interventional pain solutions, combining unique technology platform with a broad portfolio and practi
Slide 25: 2023E served market $3.6B
2023E served market $3.6B Growing ~6-7% through 2026E Pain Therapies Brain Modulation Spinal Cord Stimulation Interventional Pain Deep Brain Stimulation $2.4B $0.4B $0.8B ~5-6% growth ~8% growth ~8% growth WaveWriter Alpha Cognita G4 RF Ablation Vertiflex Vercise Genus Market size represents 2023 es
Slide 26: We operate in underpenetrated markets with indication expansion opportunities
We operate in underpenetrated markets with indication expansion opportunities WW SCS Patients WW DBS Patients 1.2M SCS-eligible patients per year >1M Incident diagnosed patients Parkinson’s Disease (PD) and Failed Back Surgery Syndrome (FBSS) / 0.7M Complex Regional Pain Syndrome (CRPS) Essential Tr
Slide 27: DBS: Strong momentum and de novo implant leadership
DBS: Strong momentum and de novo implant leadership Innovative Patient Physician therapy activation ease-of-use Full portfolio (primary cell and rechargeable) with Surgical Planning + true directionality Image-Guided Programming (IGP) Continuing to lead innovation through imaging-based surgical plan
Slide 28: Precise stimulation and comprehensive programming with imaging
Precise stimulation and comprehensive programming with imaging 28
Slide 29: Precise stimulation and comprehensive DBS programming with imaging
Precise stimulation and comprehensive DBS programming with imaging 84% Increased “ON” time at 1 year1 (+6 hours of symptom control) Reduced programming 56% time with BSX Image- Guided Programming (~45 min → ~20 min)2 29
Slide 30: Leading in Pain and well positioned to grow through a unique strategic position
Leading in Pain and well positioned to grow through a unique strategic position Leading SCS Therapy Broadest Portfolio Best Partnership Alpha primary cell and One Boston rechargeable + + = FAST Algorithm Continuing to drive innovation through indication expansion, tech advancements and health econom
Slide 31: Personalized SCS stimulation driving meaningful outcomes for patients
Personalized SCS stimulation driving meaningful outcomes for patients Setting the standards for SCS therapy COMBO RCT: SOLIS RCT: Higher functional improvement vs. Monotherapy RCTs Exceptional response in Patients with NSBP 11x 30 89.5% 90 26 Δ in Owestry Disability 25 80 % pts. With >50% pain relie
Slide 32: Furthering pain category leadership strategy with the Intracept Procedure
Furthering pain category leadership strategy with the Intracept® Procedure for Chronic Low Back Pain Compelling synergies with current pain portfolio ~$2.5B First-to-market treatment for Total Addressable Market1 vertebrogenic chronic low back pain Level 1 clinical evidence (2 RCTs) Fewer opioids an
Slide 33: Neuromodulation
Neuromodulation Growth through innovation across Pain and Brain Significant opportunity within large, underpenetrated markets today, with high-growth adjacencies Pain therapies: leading portfolio of interventional pain solutions, combining unique technology platform with a broad portfolio and practi
Slide 34: Endoscopy
Endoscopy Mike Jones, Senior Vice President and President, Endoscopy Brian Dunkin, M.D., Chief Medical Officer, Endoscopy
Slide 35: Endoscopy
Endoscopy A consistent growth engine Track record of consistent high performance, outpacing our markets Expect high single-digit growth over LRP Margins accretive to BSX Exciting high-growth market adjacencies Clear category leadership, deep and broad portfolio, multiple platforms 35
Slide 36: 2023E served market $6B
2023E served market $6B Growing ~7% through 2026E PANCREATICOBILIARY ENDOLUMINAL SURGERY CORE ENDOSCOPY $2B market '23E $1B market '23E $3B market ’23E 8% growth 10% growth 5% growth GI Bleeding Gallstone Disease Colonoscopy Gastric/Colorectal Cancer Pancreatic Cancer Upper Endoscopy Obesity Market
Slide 37: 2023E served market $6B
2023E served market $6B Growing ~7% through 2026E PANCREATICOBILIARY ENDOLUMINAL SURGERY CORE ENDOSCOPY $2B market '23E $1B market '23E $3B market ’23E 8% growth 10% growth 5% growth Mantis Captivator CRE OverStitch EXALT Model D AXIOS Orbera® WallFlex Infection Prevention Market size represents 202
Slide 38: BSX Endoscopy's winning strategy
BSX Endoscopy’s winning strategy LEAD WITH PORTFOLIO DRIVE COMMERCIAL EXCELLENCE Internal R&D, balanced U.S./OUS Health economics & market access Opportunistic business development Professional education ~$3B+ Strategic relationships to Evidence generation build local portfolio BSX Endoscopy revenue
Slide 39: Pancreaticobiliary
Pancreaticobiliary Largest franchise and key growth driver A broad portfolio Continued innovation on a complete line of innovative technology of gold standard single-use scopes EXALT Model D SpyGlass Discover + Accessories 4th Gen 4th Gen Expanding indications on market leading AXIOS Transluminal St
Slide 40: Evolving endoluminal surgery for growth
Evolving endoluminal surgery for growth Moving surgical problems to endoscopic solutions ENDOLUMINAL SURGERY (ELS) PORTFOLIO STRENGTHENED BY ACQUISITION Building the Toolbox of ELS solutions …Supported by BSX Capabilities Resections Lifting Cutting Reimbursement Dissection X-TackTM Endoscopic HeliX
Slide 41: Future opportunities to accelerate growth
Future opportunities to accelerate growth Innovation enables more complex lesions to be Prototype treated endoluminally Lung AXIOS OverStitch NXT OverStitch Full Thickness Resection Pancreas Evolution from surgery to Endoscopic bariatrics Novel uses for endoscopic approaches & metabolic disease endo
Slide 42: Endoscopy
Endoscopy A consistent growth engine Track record of consistent high performance, outpacing our markets Expect high single-digit growth over LRP Margins accretive to BSX Exciting high-growth market adjacencies Clear category leadership, deep and broad portfolio, multiple platforms 42
Slide 43: Urology
Urology Meghan Scanlon, Senior Vice President and President, Urology Ron Morton, M.D., Vice President and Chief Medical Officer, Urology
Slide 44: Urology
Urology Driving Urology leadership Strengthening category leadership in attractive market with unmet needs Demonstrating consistent high performance, outpacing market Fueling growth through our diversified portfolio and global reach Sustaining accretive P&L and supporting OM expansion goals Growing
Slide 45: 2023E served market $4.5B
2023E served market $4.5B Growing ~7% through 2026E Stone Management Prostate Health Prosthetic Urology Pelvic Floor $2.6B market $1.1B market $0.7B market $0.4B market 5-7% growth 12-14% growth 6-8% growth 3-5% growth LithoVue Elite SpaceOAR Systems Single-Use Digital Flexible Absorbable Perirectal
Slide 46: Sustainable performance
Sustainable performance Unlocking durable, above-market growth Category leadership Meaningful innovation Global expansion Commercial excellence First-to-market launches Untapped potential in all markets Comprehensive portfolio Differentiated technology Diversified portfolio Revenue Growth (BSX vs. M
Slide 47: Prostate Health
Prostate Health Focused approach to build scale internationally CLINICAL AND ECONOMIC EVIDENCE GLOBAL EXPANSION AND MARKET ACCESS • Rezūm approval in China & Japan • Rezūm fully reimbursed in Japan • SABRE Trial • Extended reach of virtual physician education • Demonstrating the benefit of spacing w
Slide 48: StoneSmart Solutions with AI capabilities
StoneSmart Solutions with AI capabilities Realizing the power of our innovations together First-to-market intrarenal pressure monitoring StoneSmart Solutions Vision Comprehensive interconnected ecosystem fueled by AI. LithoVue Elite System Unlocking new insights & revolutionizing stone management. S
Slide 49: Prosthetic Urology
Prosthetic Urology Fueling growth in a vastly underpenetrated market Erectile restoration market opportunity Investments to activate market • $2.6B global annual addressable ER market in 2023E • Only 1.3% of prospective U.S. prothesis (IPP) candidates receive an implant1 2023: Launched single-use Fu
Slide 50: HARD DTP Campaign
HARD DTP Campaign Driving patient advocacy and therapy awareness 50
Slide 51: Urology
Urology Driving Urology leadership Strengthening category leadership in attractive market with unmet needs Demonstrating consistent high performance, outpacing market Fueling growth through our diversified portfolio and global reach Sustaining accretive P&L and supporting OM expansion goals Growing
Slide 52: ESG Video
Boston, ESG Video Scientific Advancing science for life™ Kathryn Unger Vice President of Environmental, Social and Governance
Slide 53: Medsurg Q&A
Boston, Scientific Advancing science for life Medsurg Q&A
Slide 54: Peripheral Interventions
Peripheral Interventions Jeff Mirviss, Executive Vice President and President, Peripheral Interventions Michael R. Jaff, D.O., Vice President and Chief Medical Officer, Peripheral Interventions
Slide 55: Peripheral Interventions
Peripheral Interventions Driving leadership in IO&E and Vascular Therapies Expect to be ~$2B business in 2023 with growth outpacing market Investing in high-growth categories with category-leading platforms and accelerating margin Significant growth opportunities with drug elution, cancer, embolizat
Slide 56: 2023E served market $9B
2023E served market $9B Growing ~7% through 2026E IO&E VASCULAR THERAPIES Interventional Arterial Venous Oncology & Therapies Therapies Embolization (IO&E) ~$2.5B market ’23E ~$5B market ’23E ~$2B market ’23E 9% growth 5% growth 13% growth BSX #1 in IO&E - 2x nearest competitor BSX #1 including U.S.
Slide 57: Opportunity to expand & grow IO&E with TheraSphere
Opportunity to expand & grow IO&E with TheraSphere TODAY Focused on Primary Liver Cancer (HCC) Expanding TheraSphere TAM to >$3.5B • Only FDA approved device for HCC • International indication for all liver tumors • Delivering consistent DD growth • Streamline customer experience TOMORROW New Geogra
Slide 58: Attain embolization category leadership in IO&E
Attain embolization category leadership in IO&E Technology investments in best-in-class embolization solutions enabling differentiation and leadership in high-growth categories EMBOLD Detachable Coil System OBSIDIO Conformable Embolic • 3 coils; 1 delivery system • U.S. launch in 2023 • Soft & packi
Slide 59: OBSIDIO Conformable Embolic
OBSIDIO Conformable Embolic 59
Slide 60: Executing PI category leadership strategy in Vascular
Executing PI category leadership strategy in Vascular Pipeline investments, matrix expansion and evidence generation driving leadership in high-growth vascular categories Strengthen Position in Venous Clear U.S. Leadership in SFA Drug-Elution (DE) Via Innovative & Opportunistic Strategy ELUVIA DES R
Slide 61: Innovation in evidence generation
Innovation in evidence generation PI is creating a competitive advantage by generating meaningful clinical evidence through innovative and efficient clinical investments Challenging the SOC with HI-PEITHO Head-to-Head in DE with SPORTS Trial • Anticoagulation (AC) alone is Standard of Care (SOC) in
Slide 62: Expanding PI leadership globally
Expanding PI leadership globally Increase access to meaningful innovation and additional revenue in fast-growing global markets Global Expansion Accelerates Growth • International market outpacing U.S. market growth • Investment delivers additional revenue in fast-growing China market • Global growt
Slide 63: Peripheral Interventions
Peripheral Interventions Driving leadership in IO&E and Vascular Therapies Expect to be ~$2B business in 2023 with growth outpacing market Investing in high-growth categories with category-leading platforms and accelerating margin Significant growth opportunities with drug elution, cancer, embolizat
Slide 64: China
China June Chang, President, Greater China
Slide 65: China
China Transforming care to serve more patients in China China is one of the most attractive MedTech markets with its unmatched growth, scale and innovation ecosystem Market is increasingly complex with payment reform, local competition, and policy pivoting towards local sourcing BSX China is on trac
Slide 66: China poised to deliver leveraged growth with diversified portfolio
China poised to deliver leveraged growth with diversified portfolio Sustained Double-Digit Growth Rate Diversified Portfolio BSX China Revenue (2017 – 2026E) Sales Contribution by Business (2023E) Neuromodulation Urology 1% DD growth 8% Strong business rebound & Endoscopy continued mid-teens growth
Slide 67: How we will continue to win in China: our strategic imperatives
How we will continue to win in China: our strategic imperatives Accelerated Launches & Supply Chain Agility & Sustained Investment in Commercial Excellence Value-chain Localization Talent & Capabilities 2023-2026E Digital Transformation China for Global Thyroid ablation needle, the1st BSX > R&D desi
Slide 68: China
China Transforming care to serve more patients in China China is one of the most attractive MedTech markets with its unmatched growth, scale and innovation ecosystem Market is increasingly complex with payment reform, local competition, and policy pivoting towards local sourcing BSX China is on trac
Slide 69: PI & China Q&A
Boston, Scientific Advancing science for life P| & China Q&A
Slide 70: Break
Boston, Scientific Advancing science for life Break
Slide 71: Cardiology
Cardiology Joe Fitzgerald, Executive Vice President and Group President, Cardiology
Slide 72: Cardiology Group
Cardiology Group Positioned for above-market growth Compete in large global markets growing 7% from ~$35B in 2023 Revenue growth enhances portfolio diversification – Expect revenue from high-growth markets to approach 50% in 2026E Transformational opportunity to disrupt Electrophysiology market with
Slide 73: Significant growth drivers throughout the portfolio
Significant growth drivers throughout the portfolio Anticipated above-market growth rates for Cardiology Interventional Cardiology Therapies Cardiac Rhythm Management (ICTx) WATCHMAN Electro- (CRM) Coronary Structural physiology (WM) (EP) Therapies Heart Valves (CT) (SHV) Core CRM Diagnostics (Dx) P
Slide 74: Cardiac Rhythm Management
Cardiac Rhythm Management Scott Olson, Senior Vice President and President, Cardiac Rhythm Management Ken Stein, M.D., Senior Vice President and Global Chief Medical Officer
Slide 75: Cardiac Rhythm Management
Cardiac Rhythm Management Extending category leading portfolio Diverse global team passionate about winning in a competitive market At or above market growth for Core CRM with highly competitive and differentiated offerings Exceeding market growth rates and taking share in Diagnostics with upcoming
Slide 76: 2023E served market $11B
2023E served market $11B Growing ~1% through 2026E Cardiac Diagnostics AECG ICM Cardiac Rhythm Management Ambulatory ECG Insertable Cardiac Monitor $1.3B $0.8B $8.5B ~6% Growth ~2% Growth ~0 – 2% Growth LUX-DX II/II+ Insertable Resonate family of HeartLogic EMPOWER BodyGuardian EMBLEM S-ICD Cardiac
Slide 77: Cardiac Diagnostics pipeline
Cardiac Diagnostics pipeline Only company to offer full spectrum of solutions Wearable Ambulatory Insertable Cardiac Disease State Electrocardiogram Monitors (ICM) Expansion (HF) (AECG) Next Generation Next Generation LUX-Dx + HeartLogic BODYGUARDIAN MINI UL LUX-Dx II/II+ Next-gen differentiators: 4
Slide 78: Cardiac Rhythm Management pipeline
Cardiac Rhythm Management pipeline Strategic areas of investment fuel differentiation Comprehensive CRM Conduction system pacing Leadless pacing and next portfolio advances generation CRM platform Current Options Future Growth with leadless pacing Category leading EMBLEM MRI Subcutaneous Implantable
Slide 79: Modular CRM System: mCRM
Modular CRM System: mCRM EMBLEM MRI S-ICD & EMPOWER Leadless Pacemaker EMBLEM MRI S-ICD System Modular CRM System: mCRM Modular upgrade pathway 79-92% fewer serious lead related for the minority of patients with an complications for S-ICD vs. TV-ICD.1-2 S-ICD who develop a need for pacing Remains th
Slide 80: Cardiac Rhythm Management
Cardiac Rhythm Management Extending category leading portfolio Diverse global team passionate about winning in a competitive market At or above market growth for Core CRM with highly competitive and differentiated offerings Exceeding market growth rates and taking share in Diagnostics with upcoming
Slide 81: WATCHMAN
WATCHMAN One time for a lifetime Angelo De Rosa, Vice President and General Manager, WATCHMAN Brad Sutton, M.D., Vice President and Chief Medical Officer, AF Solutions
Slide 82: WATCHMAN
WATCHMAN Strengthen leadership position Strong double-digit growth with margins and growth rates accretive to BSX Over 350k patients treated with market development ecosystem driving patient and referrer demand Clinical trial pipeline driving multiple worldwide indication expansion opportunities Con
Slide 83: WATCHMAN LAAC Solutions market
WATCHMAN LAAC Solutions market Global LAAC market quadruples from 2023 to 2030 U.S. treated patients Global LAAC Market Market penetration provides room for continued therapy expansion Cumulative penetration into 2020 Monthly 2021 2022 2023 indicated patient population (U.S.) WATCHMAN Patients >20%
Slide 84: Driving double-digit growth
Driving double-digit growth Key levers to drive growth now and into the future Lead in innovation | Commit to growing the LAAC market | Expand globally Addressing new patients Patient awareness Underserved patients Expand referral base Real world data Indication expansion Drive DTP success via Healt
Slide 85: WATCHMAN LAAC solutions portfolio
WATCHMAN LAAC solutions portfolio Innovation strengthens leadership position Leading in Innovation Growing the LAAC Market Expanding Globally Bi-directional Steering 17F outer diameter 12F inner diameter Ergonomic Handle Steering Dial Foundation of leadership today Innovation to drive further penetr
Slide 86: WATCHMAN FLX Pro spotlight
WATCHMAN FLX Pro spotlight Extending the proven safety profile of WATCHMAN FLX Leading in Innovation Growing the LAAC Market Expanding Globally WATCHMAN FLX platform with proven safety & 1 HEMOCOAT Technology procedural performance • Durable fluoropolymer coating • Enhanced healing • Thromboresistan
Slide 87: Indicated patient number could grow >4x
Indicated patient number could grow >4x New indications, expanded coverage and reimbursement by 2030 Leading in Innovation Growing the LAAC Market Expanding Globally ~14-18M ~18M Stroke Reduction in Higher Risk Pts. ~11M (~1-2M US patients) International 1-2% ~1-2M ~4M Monotherapy Clinical Trial New
Slide 88: Landmark clinical trials for therapy expansion: Monotherapy and LAAOS-4
Landmark clinical trials for therapy expansion: Monotherapy and LAAOS-4 Leading in Innovation Growing the LAAC Market Expanding Globally WATCHMAN FLX Pro Monotherapy Trial Hypothesis: WATCHMAN FLX Pro coating enables less intensive post-procedure antithrombotic regimen LAAOS-4 complements current tr
Slide 89: Global expansion further propels growth
Global expansion further propels growth Accelerate market development in key geographies Leading in Innovation Growing the LAAC Market Expanding Globally Addressable market in China, Growth by indication Key target markets Japan, and EMEA for China, Japan, and EMEA Post indication Extend leadership
Slide 90: TV campaign commercial
Boston, > TV campaign commercial Scientific Advancing sc
Slide 91: WATCHMAN
WATCHMAN Strengthen leadership position Strong double-digit growth with margins and growth rates accretive to BSX Over 350k patients treated with market development ecosystem driving patient and referrer demand Clinical trial pipeline driving multiple worldwide indication expansion opportunities Con
Slide 92: Interventional Cardiology Therapies
Interventional Cardiology Therapies Lance Bates, Senior Vice President and President, ICTx Janarthanan Sathananthan, M.D., Incoming Chief Medical Officer, ICTx
Slide 93: Interventional Cardiology Therapies (ICTx)
Interventional Cardiology Therapies (ICTx) Above-market growth driven by Triple “A” strategy Track record of delivering growth and outpacing our markets Unlocking new and compelling markets Leveraging a highly diversified global business Growth accelerating over the LRP Building foundational portfol
Slide 94: 2023E served markets $15B
2023E served markets $15B Growing ~7% through 2026E Drug Eluting Therapies Complex PCI PCI-Guidance TAVR $3.2B $3.6B $1.2B $6.5B ~6% Growth ~9% Growth ~9% Growth LDD Growth SYNERGY XD Stent System ACURATE Prime ROTAPRO Rotational AVVIGO + Multi Modality Atherectomy Device Aortic Valve System AGENT P
Slide 95: Complete Coronary Therapies portfolio tailors patient care approach
Complete Coronary Therapies portfolio tailors patient care approach SEE PREPARE TREAT PCI Guidance Calcium & Challenging Lesions Drug-Eluting Therapies AVVIGO II SYNERGY XD Guidance System WOLVERINE Stent System (w/ 48mm) Cutting Balloon COMET II ROTAPRO Pressure Guidewire Rotational SYNERGY MEGATRO
Slide 96: Coronary Therapies growth drivers
Coronary Therapies growth drivers AVVIGO+ and AGENT 2 1 3 Effortless Deliverability • Better catheter flexibility for deliverability Automated Lesion Fast Pullback • Low tip profile for crossing Assessment (ALA ) High quality images Precise vessel measurements at the pullback speed you want 1 2 4 Ef
Slide 97: ACURATE global commercialization and clinical outcomes drive strong TAVR growth
ACURATE global commercialization and clinical outcomes drive strong TAVR growth Market entries & matrix expansion Compelling clinical Growing body of clinical accelerate revenue & footprint outcomes1 today evidence for the future $4.4B $1.7B $0.4B Main Randomized Cohort5 N=1,500 All risk indications
Slide 98: ACURATE Prime Aortic Valve System
ACURATE Prime Aortic Valve System Enhancing the best of ACURATE neo2 All Risk Indications, Full Size Matrix, and Optimized Delivery EXPANDED TREATMENT RANGE 20.5mm – 29mm QUICK RELEASE VALVE FRAME ENHANCEMENT 90 degree quick & controlled Superior performance deployment in complex cases 14F SHEATH CO
Slide 99: ACURATE Prime XL case review
ACURATE Prime XL case review CAUTION: Investigational device. Limited under U.S. Federal law to investigational use only. Not available for sale. 99
Slide 100: ICTx growth through innovation
ICTx growth through innovation Strategic bets today, tomorrow and future $25B+ in New Market Opportunities in LRP LV SUPPORT RENAL MITRAL & HEART FAILURE CARDIAC FLOW INTRAVASCULAR TECH HRPCI, CS DENERVATION TRICUSPID VALVE SHUNTS MODULATION LITHOTRIPSY ACCELERATORS VITALYST ~$4B ~$3B ~$7B ~$1B ~$2B
Slide 101: Interventional Cardiology Therapies (ICTx)
Interventional Cardiology Therapies (ICTx) Above-market growth driven by Triple “A” strategy Track record of delivering growth and outpacing our markets Unlocking new and compelling markets Leveraging a highly diversified global business Growth accelerating over the LRP Building foundational portfol
Slide 102: Electrophysiology
Electrophysiology Nick Spadea-Anello, Global President, Electrophysiology Brad Sutton, M.D., Chief Medical Officer, AF Solutions
Slide 103: Electrophysiology
Electrophysiology Disrupt through Pulsed Field Ablation leadership Highly innovative AF portfolio expected to transform EP and take share Fast growing market, driven by AF ablation and shift to PFA FARAPULSE PFA System leads in PFA with over 25k patients treated and is expanding patient access – Inn
Slide 104: EP is an attractive $8B market
EP is an attractive $8B market Underpenetrated market with diverse approaches 2023E $8B Global EP Market 2023E ~$5B Global AF Market +13% ’24E to ’26E CAGR AF Procedures, Penetration, Procedure Revenue By AFib Type By Energy & Approach RF PVI PersAF ~850k PAF ~$3B ~$5B AF Non-AF $8B AF ~45% ablation
Slide 105: Differentiated EP portfolio
Differentiated EP portfolio Robust EP offerings from access to diagnosis to ablation Pulsed Field Ablation US: H2:24 Integrated RF Ablation Cryoablation PFA & RF Mapping Access Solutions US: YE:24 PFA leadership with Next-generation FARAPULSE platform Market leadership in advanced POLARx Cryoablatio
Slide 106: POLARx Cryoablation
POLARx Cryoablation Redesigned next generation platform POLARx POLARx FIT FROZEN AF Cryoablation System cryoballoon catheter Clinical FROzEN (n=325) 12 Month Competitive 79.9% freedom from arrythmias Landscape 96.6% event free No reported • PV stenosis • Persistent phrenic nerve palsy • Esophageal f
Slide 107: AF ablation market acceleration driven by PFA benefits
AF ablation market acceleration driven by PFA benefits Global AF Procedures by Procedure Type $ Revenue, CAGRs, Procedure Share (%) 1,500 1.4 M ~$11B 1,405k 1,060 ~20% ~$8Bk 1,066k Strong DD growth in PVI+ & PVI driven by 51% 1,000 PersAF Front-Line Enhanced safety of PFA 760 k ~16% Indication ~$5B
Slide 108: Cadence of FARAPULSE innovation backed by world-class clinical evidence
Cadence of FARAPULSE innovation backed by world-class clinical evidence P O R T F O L I O I N V E S T M E N T S Paroxysmal AF Completed with PVI Persistent AF w/ PVI + Posterior Wall LPI: Q3 2023 (PW) Persistent AF Front-Line Therapy FPI: H1 2024 FARAWAVE Nav & Indication Expanding FARAWAVE FARAPOIN
Slide 109: Efficient, consistent workflows
Efficient, consistent workflows Options address broad range of global needs Simple procedures regardless of imaging choice Options for all physicians ICE Fluoroscopy 3D Mapping Precision 3D mapping with FARAVIEW in RHYTHMIA RHYTHMIA integration for optimized, efficient mapping Full Rhythmia Integrat
Slide 110: FARAPULSE Pulsed Field Ablation System
FARAPULSE Pulsed Field Ablation System 110
Slide 111: ADVENT meets all primary endpoints
ADVENT meets all primary endpoints 607 patients, 30 US centers, highly skilled thermal operators 73.3% Met criteria for non-inferiority for efficacy: FARAWAVE : 73.3% vs. Thermal: 71.3% EFFICACY single procedure, off-AAD Tx (single-procedure, off-AAD treatment success rate at 12mo) success rate at 1
Slide 112: Global real-world data
Global real-world data Two large scale registries and numerous independent studies • Efficacy rates match standard of care1 MANIFEST-PF Registry 24 EU centers 77 operators 1,568 patients • Zero thermal injuries to date2 EU-PORIA Registry 7 EU centers 42 operators • Less than 2% adverse event rate, w
Slide 113: Committed to clinical leadership
Committed to clinical leadership Last Patient: Q3:23 First Patient: H1:24 Persistent AF indication expansion Front-line therapy for persistent AF Posterior wall workflow Expands persistent patient access to ablation therapy Our proprietary flower design is uniquely optimized for pulmonary vein and p
Slide 114: Electrophysiology
Electrophysiology Disrupt through Pulsed Field Ablation leadership Highly innovative AF portfolio that will transform EP and take share Fast growing market, driven by AF ablation and shift to PFA FARAPULSE leads in PFA with over 25k patients treated and is expanding patient access – Innovation and i
Slide 115: Cardiology Q&A
Boston, Scientific Advancing science for life Cardiology Q&A
Slide 116: Finance Overview
Finance Overview Dan Brennan, Chief Financial Officer
Slide 117: Financial execution goals
Financial execution goals Well positioned to create sustainable shareholder return 2023E 2024E-2026E Long-term Guidance1 Goals Goals Durable +10% to 11% +8% to 10% Grow faster than Revenue Growth vs. ’22 organic* organic* CAGR underlying markets Adj. Operating ~26.4% +150bps +80bps vs. 2022 ~30%+ Ma
Slide 118: Operating margin expansion
Operating margin expansion Driving efficiencies while thoughtfully reinvesting in growth Continued Focus on Profitability Adjusted Operating Margin* Gross Margin: Driving Expansion Despite Headwinds • Invest in capacity to prepare for and ramp new products (’24-’25) • Foreign exchange expected to be
Slide 119: Cash Flow profile
Cash Flow profile Margin expansion expected to deliver stronger FCF* over time BSX FCF* Conversion FCF* to Adjusted FCF* Reconciliation 2019 2021 2022 2023E Free Cash Flow* $1.4B $1.3B $0.9B ~$1.6B Approaching Litigation-related payments 0.3 0.4 0.3 70% by 2026 Tax-related payments (0.0) 0.0 0.3 Acq
Slide 120: Balanced capital deployment
Balanced capital deployment Capital Allocation Priorities ✓ High quality tuck-in M&A remains #1 allocation priority ✓ Goal to execute annual share repurchase6 to offset share dilution ✓ No plans to reduce current debt levels or initiate a dividend at this time Healthy Commitment to Disciplined Balan
Slide 121: What to expect from BSX: 2024-2026
What to expect from BSX: 2024-2026 Next level performance Strong and differentiated financial performance over the 3 year period – Organic* sales CAGR of 8-10%, above historical growth bolstered by key market launches – +150bps of adjusted operating margin* expansion, strong double digit adjusted EP
Slide 122: Final Q&A
Boston, Scientific Advancing science for life Final Q&A
Slide 123: BSX Investor Day
BSX Investor Day Thank you for your interest
Slide 124: Appendix
Boston, Scientific Advancing science for life Appendix
Slide 125: Acronym reference guide
> Acronym reference guide Bostone. , Scient1 Advancing science for life ‘AAA __| Abdominal Aortic Aneurysm, DPN _| Diabetic Peripheral Neuropathy Wus | intravascular Ultrasound Pv Pulmonary Vein Isolation ‘AAD __| Anti-Arhythmic Drugs DiP__| Direct to Patient TAAC _| Left Atrial Appendage Closure PY
Slide 126: BSX 2023 Served Markets
BSX 2023 Served Markets 2023E Served Market CAGR 2023E Market Market 2024E - 2026E Position Cardiology $35B 7% n/a Interventional Cardiology #1 #3 $15B 7% Therapies CT SHV Cardiovascular Watchman $1.4B ~20% #1 Cardiac Rhythm #2 #3 $11B 1% Management Defib Pacer Electrophysiology $8B 13% #4 Periphera
Slide 127: Strategy References
Strategy References Financial performance slide 1. Based on 2023 guidance provided on July 27, 2023 2. Free cash flow* (FCF) is a non-GAAP measure calculated as operating cash flows less net purchases of property, plant, and equipment and internal use software. A reconciliation of FCF to operating c
Slide 128: Neuromodulation References
Neuromodulation References Underpenetrated markets slide WW TAMs (Total Addressable Markets) based on Incident de novo populations, except where otherwise noted; 2022 figures DBS PD: 1 Marras, C., et al. Prevalence of Parkinson’s disease across North America. Npj Parkinson's Disease, 4(1), 1–7. 2 Ma
Slide 129: Urology References
Urology References Served market slide 1. Data on file with Boston Scientific. Sustainable performance 1. Data on file with Boston Scientific. Prosthetic Urology slide 1. Rojanasarot S, Williams A, Edwards N, Khera M. Quantifying men with erectile dysfunction potential candidates for penile prosthes
Slide 130: Peripheral Interventions References
Peripheral Interventions References Served market slide 1. Data on file with Boston Scientific. TheraSphere opportunity slide 1. Data on file with Boston Scientific. Embolization market slide 1. Data on file with Boston Scientific. Vascular Therapies slide 1. Data on file with Boston Scientific. 130
Slide 131: Cardiac Rhythm Management References
Cardiac Rhythm Management References Modular CRM System slide 1. Knops RE, Pepplinkhuizen S, Delnoy P, et al. Device-related complications in the subcutaneous and transvenous ICD: a secondary analysis of the PRAETORIAN trial. Eur Heart J. Aug 28 2022;43(47):4872-4883. doi:10.1093/eurheartj/ehac496 2
Slide 132: WATCHMAN References
WATCHMAN References WATCHMAN LAAC solutions slide 1. Colilla S, Crow A, Petkun W, Singer DE, Simon T, Liu X. Estimates of current and future incidence and prevalence of atrial fibrillation in the U.S. adult population. Am J Cardiol. 2013 Oct 15;112(8):1142-7. doi: 10.1016/j.amjcard.2013.05.063. Epub
Slide 133: Interventional Cardiology Tx References
Interventional Cardiology Tx References ACURATE commercialization and outcomes slide 1. Early neo2 Registry. Full Core-Lab Results of TAVI with the New ACURATE neo2 Valve. TVT Congress. Presenter: Andreas Rück. July 20, 2021. 2. Launch data on file at BSX as of July 2023. 3. Post-procedure Echo, Cor
Slide 134: Electrophysiology References
Electrophysiology References EP market slide 1. EP Market: Market Data Sources 2. AF Ablation Market: Internal BSC analysis, Market research ADVENT data slide 1. Reddy VY, Gerstenfeld EP, Natale A, Whang W, Cuoco FA, Patel C, Mountantonakis SE, Gibson DN, Harding JD, Ellis CR, Ellenbogen KA, DeLurgi
Slide 135: Finance References
Finance References Financial execution slide 1. Based on guidance issued on July 27, 2023 Cash flow slide 2. Free cash flow* (FCF) is a non-GAAP measure calculated as operating cash flows less net purchases of property, plant, and equipment and internal use software. A reconciliation of FCF to opera
Slide 136: Supplemental non-GAAP disclosures
Supplemental non-GAAP disclosures This presentation contains certain non-GAAP financial measures associated with the company’s historical and future expected performance. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States. A rec
Slide 137: Supplemental non-GAAP disclosures
Supplemental non-GAAP disclosures Six Months Ended Impact of June 30, Foreign Impact of Recent As Reported Currency Acquisitions / Organic H1 2023 Net Sales by Business (in billions) 2023 2022 Basis Fluctuations Operational Basis Divestitures Basis Endoscopy $1.2 $1.1 10.7% 1.8% 12.6% -1.0% 11.6% Ur
Slide 138: Supplemental non-GAAP disclosures
Six Months Ended June 30, Supplemental non-GAAP disclosures As Reported H1 2023 Net Sales by Region (in billions) 2023 2022 Basis F U.S. $ 4.1 $ 3.7 10.8% EMEA (Europe, Middle East and Africa) 1.4 1.3 11.8% APAC (Asia-Pacific) 1.2 1.0 12.1% LACA (Latin America and Canada) 0.3 0.2 17.1% International
Slide 139: Supplemental non-GAAP disclosures
Supplemental non-GAAP disclosures 139
Slide 140: Supplemental non-GAAP disclosures
Supplemental non-GAAP disclosures Adjusted EPS H1 2023 H1 2022 Net income (loss) per share, as reported $ 0.39 $ 0.24 Amortization expense 0.25 0.24 Goodwill and other intangible asset impairment charges 0.04 0.00 Acquisition/divestiture - related net charges (credits) 0.17 0.12 Restructuring and re
Slide 141: Supplemental non-GAAP disclosures
Supplemental non-GAAP disclosures 141
Slide 142: Supplemental non-GAAP disclosures
Supplemental non-GAAP disclosures 2023E Net Income Income Tax (Loss) Available Income (Loss) Before Expense Net Income Preferred Stock to Common Adjusted Net Income available to common stockholders (in billions) Income Taxes (Benefit) (Loss) Dividends Stockholders Reported $ 1.8 $ 0.5 $ 1.3 $ (0.0)
Slide 143: Supplemental non-GAAP disclosures
Supplemental non-GAAP disclosures 2021 Net Income Income Tax (Loss) Available Income (Loss) Before Expense Net Income Preferred Stock to Common Adjusted Net Income available to common stockholders (in billions) Income Taxes (Benefit) (Loss) Dividends Stockholders Reported $ 1.1 $ 0.0 $ 1.0 $ (0.1) $
Slide 144: Supplemental non-GAAP disclosures
Supplemental non-GAAP disclosures APAC Net Sales Growth FY 2022 Net sales growth, as reported 2.2% Impact of foreign currency fluctuations 10.2% Net sales growth, operational 12.4% 144