Boston Scientific Corporation · NYSE:BSX
Boston Scientific — Merger or Acquisition (January 2006)
29 slides from Boston Scientific's merger presentation, Jan 18, 2006
Slide 1: Creating a Global Leader in Cardiovascular Devices
Boston Scientific Delivering what's next.” Creating a Global Leader in Cardiovascular Devices Superior Offer to Guidant Corporation January 18, 2006
Slide 2: Safe Harbor: Forward-Looking Statements
Boston, Scientific ees Ls : oer competition, economic conditions, such as interest rate and currency exchange rae fe technological advances and patents attained by competitors; challenges innerent in new product development, including obtaining regulatory approvals; domestic and foreign health care
Slide 3: Additional Information and Proxy Solicitation
Boston, Scientific wind statement wo ia be, ¢ Guidant with the SEC are or willbe, Soe Selenbiic oF Guidant in connection with Boston Scientiic's proposed aca with Johnson & Johnson's proposed acquisition of Guidant. Ifa proxy solcitalion commences, Bost : Scientific, Guidant and their respective dir
Slide 4: Agenda
Agenda ' Sean Transaction & Financial Implications Larry Best Chief Financial Officer
Slide 5: Jim Tobin
Soreitific Delivering what's next.” Jim Tobin
Slide 6: Overview
Boston, Overview — Scientific * Antitrust discussions = Integration
Slide 7: Paul LaViolette
Serunhe Delivering what's a Paul LaViolette :
Slide 8: Key Value Drivers
Key Value Drivers Ser ie = Achieving enhanced growth and diversification = Acquiring a leading CRM position = Adding a second drug-eluting stent program = Transforming operating capabilities
Slide 9: Achieving Enhanced Diversification and Higher Growth
Achieving Enhanced Diversification Boston. and Higher Growth Boston Scientific Combined Sales Breakdown Pro Forma Sales Breakdown Neuromodulation: 3% Neuromodulation , DES 30% Endosurgery DES eee 21% 40% ED) Endosurge! 16%
Slide 10: Key Value Drivers: Acquiring Leading CRM Position
Key Value Drivers Boston, Acquiring Leadi peomnimtttatrGrout— Scenic ICDs 10% CRT-Ds 23% Pacemakers 3% 2003 2004 2005 2006 2007 2008 = Pacemakers _ CRT-Ds _IcDs 10
Slide 11: CRM Market Position
Key Value Drivers cBostone CRM Market Positi recovery Goals. aa CRM Market Share | } 30% 25% 20% 15% 10% Expanding market position 5% Conservative view 0% + T T T T T 1 2004 2005 2006 2007 2008 2009 2010 2011 ong estes. "
Slide 12: International penetration, expanding indications, growing complexity
International penetration Expanding indications Growing complexity
Slide 13: Creating Transformational Capabilities
Creating Transformational Capabilities and — bast9n¢.
Slide 14: Secanne
Secanne Delivering what's next.”
Slide 15: Transaction Overview
Transaction Overview pertne Offer Price: $80.00 per share) = Consideration: 52.5% cash / 47.5% stock?) = Premium to J&J Offer: 13% over $71.00) = Collar: $22.62 - $28.86 = Pro Forma Ownership: 63% for BSC shareholders, 37% for Guidant shareholders? = Conditions: BSC and Guidant shareholder votes Ant
Slide 16: The Abbott Agreement
The Abbott Agreement Vascular Businesses,Divestiture {Dollars in Bitions) VI/ES Asset Sale BSC Equity Sale ABT Subordinated Loan @ 4% Subtotal Upfront Xience Milestones Total $4.1 Boston, Scientific
Slide 17: The Abbott Agreement: DES Sharing
The Abbott Agreement Ser ate DES Sharin =< = BSC to share rights to Guidant’s DES portfolio = Worldwide interim supply agreement of commercial DES products — through 2010 / 2012
Slide 18: Soreitific
Soreitific Delivering what's next.”
Slide 19: BSC Enhanced Growth Profile
BSC Enhanced Growth Profile SeeHttfic (Doles) a Pro-Forma - a ‘Combined Sales 2007 2008 200920102011 207 | 208 © 2009 «20102011 ‘et aed sn Wa See Ca ant Conan env Gs ums ond Ge tn w
Slide 20: Rapid Deleveraging
Rapid Deleveraging SH Mie $80 Per Shar. lew Abbott Agreement “(Qollars in Bitions) Combined Pro Forma 3/31/2006 2006 2007 2008 2009 2010 Gross Debt 11.0 13 96 76 6.0 60 Cash 04 12 13 16 24 47 ‘et aed sn Wa See Ca ant Conan env Gs ums ond Ge tn Ea
Slide 21: Maintaining Investment Grade
Maintaining Investment Grade Se Credit Statist : BSC Pro Forma Pro Forma Lm 9/30/05” LT 3/31/06" LT 12/31/08" Gross Debt / EBITDA 1.6x 4.0x 1.8 Net Debt / EBITDA 1.0 3.8 14x FFO/Gross Debt 42% 16% 39% FFO/ Net Debt 66% 17% 50% ‘Net Debt / Capitalization 25% 38% 21% (0) entare pmaer 8,25fy, pe rm 8 m
Slide 22: Secanne
Secanne Delivering what's next.”
Slide 23: Link to searchable text of slide shown above
Link to searchable text of slide shown above
Slide 24: BSC Stock Has Delivered Superior Shareholder Returns
BSC Stock Has Delivered Boston, Superior ShareholderReturns Sutaautie Last 5 Years Since IPO® oon sete =a iia 31% 419%
Slide 25: Our $80 Offer Represents More Than $80 Increase
Our $80 Offer Represents More Than $80 cBostone Increase Incremental Value to Total Value ¢o GOT Finm/pate ____Target Price ____from Curren) ___GOT Shareholders") _Sharoholders?)_ AG Edwards (4306) 200 657% 252 $1053 FN Midwest (112/06) 700 188% 1778 778 ‘Sanford Bernstein (74005) 55 409% 1553 9559
Slide 26: Soreitific
Soreitific Delivering what's next.”
Slide 27: Roadmap to Completing the Transaction
Roadmap to Completing the Transaction te ¥ Completed confirmatory due diligence yY Discussions with antitrust agencies yY Discussions with rating agencies Y Definitive divestiture agreement with Abbott Y Definitive merger agreement delivered to Guidant = Boston Scientific and Guidant enter into a de
Slide 28: BSC Anticipated Closing Timeline
BSC Anticipated Closing Timeline SeeHttfic PRT 3 415 607. 8 9 10 11 12 13 14 15 16 17 ta 18 20 21 22 23 24 25 26 27 28 i 2a 30 31 2 21 28 8 7 8 Date Event January 17,2006 Deliver revised offer to Guidant; Guidant decares revised offer"superior and notifies JB) ofits intention to termi merger agreeme
Slide 29: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ L OGO] Creating a Global Leader in Cardiovascular Devices Superior Offer to Guidant Corporation January 18, 2006 [ L OGO] Safe Harbor: Forward-Looking Statements This presentation contains “forward-looking statements,” including, among other statemen
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