J.P.

Morgan
34th Annual Healthcare Conference
January 12, 2016

Mike Mahoney
President 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.
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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

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.
In the U.S., the Eluvia Peripheral Stent, Lotus Valve System, Ingevity Pacing Lead,
Acuity X4 CRT Lead, Vercise DBS system, and MRI-safe defibrillators are investigational
devices and not available for sale.
In the U.S., the Watchman FLX device, Emblem MRI S-ICD device, Ranger PaclitaxelCoated PTA Balloon Catheter, implantable loop recorder, and leadless pacemaker system are not
available for sale.
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 addendum to this presentation and the
Investor Relations section of our website at www.bostonscientific.com. Footnotes referenced in
this presentation can be found on slide 20.
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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

BSX: What to expect from us

Consistently delivering on and exceeding financial goals1,2

Strong culture fostering a WINNING SPIRIT

2015 Q3 YTD: 5% organic growth, +250bps adj. OM, ~20% adj. EPS growth ex FX

Transforming patients lives and leading in large global markets

Entering faster growth segments, driving category leadership

Building emerging markets scale and capabilities

Launching innovative new product cycle in 2016

Driving consistent organic revenue growth with a long runway

Leading globally: More to come in 2017-2018 and beyond

Launching into large, high growth markets with meaningful innovation

Creating value: MSD rev. growth + adj. OM expansion = DD adj. EPS growth ex FX

Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016
See slide 20 for footnotes

Boston Scientific at-a-glance

YTD operational revenue and growth as of 9/30/153

Interventional
Cardiology

Endoscopy

$1.7B, +7% YTD

$1.0B, +6% YTD

Structural Heart

Urology and
Pelvic Health

$75-100M FY15
revenue goal

Peripheral
Interventions
$723M, +15% YTD

$479M, +21% YTD

Neuromodulation
$369M, +8% YTD

Rhythm Management
CRM, Heart Failure Management, Electrophysiology
CRM $1.5B, +1% YTD
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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016
See slide 20 for footnote

EP $182M, +9% YTD

Strong execution: Performance since 2012

Operational Revenue
Growth1,3

Adj. Operating Margin2

Adj. EPS Growth2

Organic revenue growth

Includes foreign exchange impact

Operational revenue growth

Excludes foreign exchange impact

(~$0.08 in 2015E)
18%

$7.5B
$7.4B

22.5%

15%

8%

11%

20.2%

6%

4.5%
4%

18.9%
17.8%**

8%

$7.1B
2%

2012

2013

2014

2015E*

-3%
$7.2B

Sales growth acceleration

6

2012

2013

2014

2015E*

2012

2013

2014

2015E*

-2%
**Adjusted for estimated impact of Medical Device Tax
(~100bps), based on actual 2013 impact

~500 bps adj. OM

expansion

Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016
See slide 20 for footnotes

Double-digit adj. EPS

growth ex FX

*2015E represents guidance midpoint issued on Q3:15 earnings call, 10/28/15

2015 Q3 YTD: Strong operating performance

Growing above market and driving margin improvement1,2,3

5% organic and 7% operational revenue growth

+250bps adj. operating margin improvement & ~20% adj. EPS growth ex FX

Strengthening emerging markets3

Advancing key growth platforms for the future

+11% operational rev. growth and new capabilities, partnerships, product launches

Emblem S-ICD, Synergy, Watchman, Lotus, Rhythmia, Innova, Eluvia,

Precision Novi, Spyglass DS product lines

Enhancing category leadership via M&A and equity investments

AMS Male Urology portfolio, CeloNova interventional oncology

Equity investments in multiple companies

Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016
See slide 20 for footnotes

Strategic imperatives align execution

STRENGTHEN
Category
Leadership

EXPAND into
High Growth
Adjacencies

DRIVE
Global
Expansion

FUND
the Journey
to Fuel Growth

DEVELOP
Key
Capabilities

A preferred

Accelerate

Grow emerging

Adjusted

New commercial

leader & gaining

share in large
global segments

growth &
diversify into
faster segments

markets +500bps
as % total sales
2012-2017

operating margin
target of 25%+
by 2017

capabilities to
lead in dynamic
markets

Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Market outlook and investment focus

------- Estimated market* -------

Business

2015
Size

2015
Growth

2015 2020
Growth

Investing in Faster Growth Segments

Endoscopy

$3B

4%

4-6%

Visualization, pulmonary therapies, endo ultrasound

Urology and
Pelvic Health

$3B

4%

4-6%

Stone, BPH, ED, visualization, international

Neuromodulation

$2B

5%

5-7%

Severe pain, Parkinson's, OAB, international

CRM

$10B

2%

0-2%

S-ICD & leadless solutions, HF diagnostic solutions

Electrophysiology

$3B

14%

10-15%

Peripheral

$4B

4%

4-6%

Drug-eluting SFA, atherectomy, oncology, liver cancer

IC (ex SH)

$8B

1%

0-3%

Complex PCI, FFR, & bioresorbable technologies

Structural Heart

$1.8B

35%

15-20%

WW Total

~$35B

~3-4%

~3-6%

Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Atrial fibrillation, mapping & navigation

TAVR, LAAC, mitral

* Market size and growth rates at constant currency and are BSX internal estimates

Cardiovascular growth drivers: 2016 & beyond

Interventional
Cardiology

Synergy & Promus

Premier
Leading DES platforms

Structural Heart

Lotus Edge
Differentiated, 2nd
generation TAVR platform

Polaris: IVUS &

Comet FFR

Watchman and 2nd

Gen Watchman FLX

Integrated imaging
platform

Left atrial appendage

closure device

Complex PCI
Broadest portfolio
to treat most
complex patients

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Mitral Valve
Technologies

Peripheral
Interventions

Eluvia DES &

Ranger DCB
Differentiated drug-eluting
technologies

Atherectomy, DVT &

Thrombectomy
clinically differentiated
products

Interventional
Oncology
embolization & tumor
management

CRM growth drivers: 2016 & beyond

ICD/CRT-D

Pacemaker

Emblem S-ICD

Accolade MRI

X4 Quad CRT-D
MINI & MRI-safe

Smaller, longer lasting,

LATITUDE remote
monitoring-enabled

Ingevity pacing lead

Full-body MRI scans
& remote monitoring

EnduraLife

Emblem MRI S-ICD

Cost effective;
Replacement cycle
Improves in 2017-2018

MRI-Safe H2:2016E
Future development:
leadless pacemaker

Valitude
X4 Quad CRT-P

Latitude Remote
Monitoring

Clinical Programs

Autogen Platform

Improved compliance
and clinical outcomes

11

Subcutaneous-ICD

Market development,
expanded indications

Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

More pacing vectors,

Industry leading longevity

Leadless Pacemaker
Single-chamber
pacemaker, plus S-ICD
compatibility

Rhythm Management growth drivers:

2016 & beyond

Diagnostics

Loop Recorder

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Electrophysiology

Rhythmia

Active project to
develop an arrhythmia
monitoring device

Mapping &
navigation platform;
frequent software
iterations

HeartLogic

Atrial Fib Solutions

HF solution for in-patient,

readmissions and chronic
disease management

Portfolio of navigationenabled, open-irrigated,

and MiFi therapeutic
catheters

Strategic Partnerships

Other EP Solutions

Portfolio of wireless,
cardiac monitoring
products and services

Recording systems
Diagnostic catheters
Accessories

Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

MedSurg growth drivers: 2016 & beyond

Neuromodulation

Endoscopy

SpyGlass DS
Visualization

Precision Spectra
Leading SCS platform
Illumina 3D
software

Precision Novi
Enter primary cell /
non-rechargeable market

LithoVue

Malignant & benign

tumors

Single-use, disposable
ureteroscope
visualization platform

Xlumena

Stone Disease

EUS-guided devices
provide minimally
invasive to surgery

Leading platform &

expanding globally

New Therapies

BPH, Erectile
Dysfunction, Male SUI

Vercise DBS
Parkinsons, dystonia,
essential tremor
indications in EU

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Urology and
Pelvic Health

Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Pulmonary:
asthma, cancer

Category leadership,
market & geographic
expansion

Innovation beyond products: ADVANTICS

Drive operational excellence in cardiovascular and GI labs

Improve utilization, patient experience and staff engagement

Reduce supply chain costs and ensure product availability

67%
Reduction in
supply chain
costs*

18%

20%

80%

Increase in
productivity*

Average
reduction in
lab turnover*

Triple patient
readiness
from 30%*

Improve quality and standardize care for chronic cardiovascular diseases

Reduce readmission rates and penalties

Improve patient experience and engagement

50%
Reduction in
HF 30-day
readmissions*

Optimize length of stay and site of care

Powered by
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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

* These are real results from ADVANTICS programs.

Results may vary.

43%
Increase in %
of patients
treated to
guidelines*

Driving global expansion

Global revenue mix
2015 YTD

Operational Revenue3,4,5
LACA 6%
(+6% YTD)

AMEA
20%
(+7%
YTD)

Europe
22%
(+7%
YTD)

15

U.S.
52%
(+8%
YTD)

---------------- Emerging Markets ---------------Growth highlights

Growth drivers

EM +11%
operational revenue3
Q3 YTD

China +20%
operational revenue3
Q3 YTD
Est. EM $1B in 2016
Est. EM 12% of
mix in 2016
(vs. 8% in 2012)

Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016
See slide 20 for footnotes

Strong team
Expanded
distribution
Product
registrations
R&D & training

centers
China JV
(Frankenman)

Significant adjusted operating margin2 expansion:

Estimated +700bps from 2012-2017

25%+
~+150bps
22.5%

~+100bps

20.2%
Accretive new
products

18.9%

5-10% annual
standard cost
improvements

17.8%

Optimize plant
networks
AMS benefit

Reduce SG&A
R&D
productivity
Reduce
adjacency
dilution
Outsourcing/
offshoring
Lean business
initiatives
AMS benefit

2012A*

2013A

2014A

2015E**

Gross Margin

*Adjusted for estimated impact of Medical Device Tax (~100bps), based on actual 2013 impact
**2015E represents guidance midpoint issued on Q3:15 earnings call, 10/28/15

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016
See slide 20 for footnote

Operating
Expenses

2017E

Adjusted OM expansion opportunities beyond 2017

27-28%
25%+

Accretive new
products

~+150bps

22.5%

~+100bps
Accretive new
products
5-10% annual
standard cost
improvements

2015E*

17

5-10% annual
standard cost
improvements

Reduce SG&A
R&D productivity

Optimize plant
networks

Reduce
adjacency
dilution

Reduce SG&A
and adjacency
dilution

Outsourcing/
offshoring

R&D productivity

Optimize plant
networks

Lean business
initiatives

AMS benefit

AMS benefit

Gross Margin

~+200 to
300bps

Operating
Expense
Reductions

Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

AMS benefit
Outsourcing/
offshoring

2017E

Operating
Margin
Improvements

2020E

*2015E represents guidance midpoint issued on Q3:15 earnings call, 10/28/15

Cash flow outlook, capital allocation priorities

Strong Cash Flow

Adjusted FCF6: 2014 2016E

2016 Capital
Allocation Priorities
1. Debt repayment

~$1.5B

2. M&A in adjacent, high-growth markets

2016E

3. Maintain flexibility

$1.3B+
$1.26B

2014A

2015E*

Litigation / tax contingencies

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016
See slide 20 for footnote

*2015E represents guidance issued on Q3:15 earnings call, 10/28/15

BSX: What to expect from us

Consistently delivering on and exceeding financial goals1,2

Strong culture fostering a WINNING SPIRIT

2015 Q3 YTD: 5% organic growth, +250bps adj. OM, ~20% adj. EPS growth ex FX

Transforming patients lives and leading in large global markets

Entering faster growth segments, driving category leadership

Building emerging markets scale and capabilities

Launching innovative new product cycle in 2016

19

Driving consistent organic revenue growth with a long runway

Leading globally: More to come in 2017-2018 and beyond

Launching into large, high growth markets with meaningful innovation

Creating value: MSD rev. growth + adj. OM expansion = DD adj. EPS growth ex FX

Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016
See slide 20 for footnotes

Footnotes

1: Organic revenue growth excludes the impact of sales from divested businesses, changes in foreign
currency exchange rates and sales from the acquisitions of the interventional business of Bayer AG and
the American Medical Systems male urology portfolio over the prior year period.
2: Adjusted operating margin, and adjusted earnings per share are non-GAAP and exclude goodwill and
other intangible asset impairment charges, acquisition and divestiture-related net charges, litigationrelated charges, restructuring and restructuring-related charges, pension termination charges, discrete
tax items and amortization expense.
3: Operational revenue growth is at constant currency, and excludes divested businesses.
4: Percent of revenue shown on a constant currency basis.
5: LACA = Latin America and Canada; AMEA = Asia, Middle East , and Africa
6: Adjusted Free Cash Flow excludes any potential amounts related to acquisition-, divestiture- and
litigation-related items, significant tax audit settlements and restructuring and restructuring-related items.
For reconciliations of non-GAAP financial measures to the most directly comparable GAAP
figures, please refer to the addendum to this presentation and the Investor Relations section of
our website at www.bostonscientific.com.
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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Supplemental Non-GAAP Disclosures

Nine Months Ended September 30, 2015

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Supplemental Non-GAAP Disclosures

Nine Months Ended September 30, 2015

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Supplemental Non-GAAP Disclosures

Twelve Months Ended December 31, 2014, 2013, & 2012

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Supplemental Non-GAAP Disclosures

Twelve Months Ended December 31, 2012, 2011

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Supplemental Non-GAAP Disclosures

Twelve Months Ended December 31, 2014, 2013

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Supplemental Non-GAAP Disclosures

YTD September 30, 2015

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Supplemental Non-GAAP Disclosures

YTD December 31, 2014

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Supplemental Non-GAAP Disclosures

Twelve Months Ended December 31, 2017 Estimate

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016

Supplemental Non-GAAP Disclosures

Twelve Months Ended December 31, 2012

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Boston Scientific J.P. Morgan 34th Annual Healthcare Conference January 12, 2016