37th Annual JP Morgan Healthcare Conference

37th Annual JP Morgan Healthcare Conference

Mike MahoneyChairman & Chief Executive Officer

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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 foreign currency fluctuations. Organic growth rates are non-GAAP measures that exclude the impact of foreign currency fluctuations and the sales from the acquisitions of the American Medical Systems male urology portfolio, EndoChoice Holdings, Inc., Symetis SA, NxThera, Inc., Claret Medical, Inc. and Augmenix, Inc. in the periods for which there are no prior period related sales.

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.

All financial estimates and other projections, including but not limited to pipeline, growth drivers, and investments, as well as other references throughout this document, unless otherwise noted, exclude the acquisition of BTG plc.

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Regulatory Disclaimers

Product Regulatory Disclaimer

LUX Dx™ 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.

Cryterion Cryothermal Energy Platform Device under development. Not available for use or sale worldwide.

DirectSense™ Technology CE Marked. Not available for use or sale in the U.S.

SAVAL™ Drug eluting below-the-knee stent U.S. Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale.

VICI™ Venous Stent CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale.

Ranger™ Drug-Coated Balloon CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale.

LOTUS Edge™ Aortic Valve CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale.

ACURATE neo™ Self-Expanding Valve platform CE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale.

ACURATE neo2™ Pending CE Mark. Not available for use or sale in the U.S.

WATCHMAN FLX™ Pending CE Mark. Not available for use or sale in the U.S.

DFR™ Technology Device under development. Not available for use or sale worldwide.

Vercise™ PC DBS System and Cartesia™

Directional LeadCE Marked. U.S.: Caution: Investigational Device. Limited by Federal (or U.S.) law to investigational use only. Not available for sale.

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Boston Scientific is dedicated to

transforming lives through innovative

medical solutions that improve the

health of patients around the world.

Our Mission and Values

CaringMeaningful

Innovation

High

Performance

Global

CollaborationDiversity Winning Spirit

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What to Expect from BSX

• Strong track record of delivering high performance & strong shareholder value

• Consistent diversification into high growth markets

• Compelling and differentiated pipeline via organic investments + M&A

• Consistent top tier revenue performance

• Double-digit EPS growth via differentiated margin expansion & strong free cash flow

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Boston Scientific At-A-Glance

$5.5B, +7%

$2.2B, +9%

$1.7B, +7%

$0.4B, +16%

US

LACA

APACt

EMEAt

2018 Revenue1 and Operational* Growth1: (Total company: $9.8B, 8%; Organic* Growth1 7%)

Strong Growth

in Every Region

$2.6B, +7%

$1.2B, +9%

$2.0B, +2%

$0.3B, +11%

$0.8B, +23%

$1.8B, +8%

$1.2B, +11% Interventional

Cardiology

Peripheral Interventions

Cardiac Rhythm Management

EP

Endoscopy

NM

Urology &Pelvic Health

Above Market

Growth in

Most Segments

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$0.84

$0.93

$1.11

$1.26

$1.38-

$1.40

+DD%

Y/Y

+15%+11%

+20%

+13%

+10%

-11%

2014 2015 2016 2017 2018E 2019E

- 2020E

20.2%

22.3%

24.1%25.0%

25.5-

25.75%

+50-100

bps Y/Y

2014 2015 2016 2017 2018E 2019E

- 2020E

+4% +5%

+10%+7%

+7%

+6% +8%

+12%+8%

+8%

$7.4 $7.5

$8.4 $9.0

$9.8

+7-10%

CAGR

2014 2015 2016 2017 2018 2019E

- 2020E

Reported revenue, Y/Y operational* growth

Y/Y organic* growth rates

Operational* revenue growth goal

Track Record of Delivering High Performance

Adjusted EPS*RevenueAdjusted Operating

Margin*

Sales growth consistently > mkt

CAGR ’15-’18E: 9% operational* &

8% organic*

Delivering on margin

expansion goals

Consistent double digit adj. EPS*

growth: CAGR ’15-’18E: 14%

331

Adj. operating margin* goal Adj. EPS* growth goal

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High Growth Mkt (≥10% CAGR): NM (SCS, DBS), Structural Heart (TAVR, LAAC, Embolic Protection), EP, PI (Drug Eluting, Venous, Y904), Endo (Endoluminal Surgery, Single-use Scopes), Uro (Prostate Cancer, MIS BPH)

Moderate Growth Mkt (4 - 9% CAGR): Endo (Core), PI (Arterial Core + Core Oncology), UroPH (Core), IC (Complex Coronary)

Low Growth Mkt (≤3% CAGR): Pacer, Defibrillators, DES

2018 Revenue Mix 2021E Revenue Mix2013 Revenue Mix

~3% ~5% ~6-7%Served Market

Y/Y Growth

Low

Growth

~30%

Moderate

Growth

~50%

$10B1

High

Growth

~20%

$7B

Low Growth

~40%

Moderate

Growth

~50%

Low

Growth

~20%

Moderate

Growth

~45%

High

Growth

~35%High

Growth

~10%

Estimated Market Growth Rates

Continued Diversification into Faster Growth Markets

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Growth Accelerators

• LAAC Global Expansion (WATCHMAN™)

• TAVR (ACURATE neo™, LOTUS Edge™) &

Embolic Protection

• Mitral Repair Technologies

• Visualization (Flex scope & FMS)

• Cancer (nVision, SpaceOAR™)

• Overactive Bladder

• Endoluminal Surgery

• Infection Prevention and Pathology

• Therapeutic Imaging

• DBS for Parkinson’s Disease and Tremor

• Other DBS indications 2023+

• Drug-eluting (ELUVIA™ DES, Ranger™ DCB)

• Therapeutic Oncology4

• Venous Stenting & Pulmonary Embolism4

IC: Structural Heart


Endoscopy

Urology & Pelvic Health

Neuromodulation

Rhythm Management• Single Shot Cryo & RF

• HeartLogic™ Heart Failure Alert

• Diagnostics

Expanding into High Growth Markets Approaching ~$20B

2018E

Sales2

$475M+

~$75M

<$200M

+80%

~$75M

<$1B

Defib

+7%

Market

2022E

~$8B

~$3.5B

~$2.5B

~$1B

~$2.5B

~$20B

~$2.5B

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Multiple Sources of Innovation Drive Compelling Pipeline

Recent Business

Development

Adjusted R&D* Spend &

Percent of Sales

Strategic Investments &

Partnerships

$0.9B

$1.0B

$1.1B

2016 2017 2018E

3

10.9%

10.8%

10.5-11%

• Active venture capital portfolio

– 40+ investments in mixed stages

of opportunity

– 4 equity investments converted

into acquisitions in 2018

• Multiple incubators + spin outs

• Strategic partnerships

5

Tsinghua University4

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Urology and

Pelvic HealthEndoscopy

Cancer• SpaceOAR™ Hydrogel

• nVision Ovarian cancer diagnosis

Therapeutic Imaging• SpyGlass™ DS visualization system

• EXALT™ single-use duodenoscope

Benign Prostatic Hyperplasia• GreenLight XPS™ laser therapy

• Rezūm™ in-office therapy

Stone Disease• LithoVue™ single-use ureteroscope

• Comprehensive device portfolio

MedSurg:

Category Leadership & Multiple New Growth Platforms

Pancreaticobiliary• AXIOS™ stent

• Jagwire™ Revolution guidewire

Endoluminal Surgery• ORISE™ Tissue Retractor System

• ORISE™ Gel submucosal lifting agent

• Additional launches to build toolkit

Infection Prevention• Compliance kits

• Scope valves and repair

Men’s & Women’s Health• AMS 700™ Penile Prosthesis

• AMS 800™ Urinary Control System

• Full mid-urethral sling portfolio

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Cardiovascular:

Category Leadership & Multiple New Growth Platforms

Peripheral

Interventions

Interventional

CardiologyStructural Heart

Complex PCI• ROTAPRO™ atherectomy

• MAMBA™ microcatheters

• SENTAI™ guidewires

• JUDO™ 3 & 6 guidewires

• GUIDEZILLA™ catheter

Drug Eluting• SYNERGY™ DES

• Promus ELITE™ DES

• AGENT™ DCB

Imaging Platforms• OptiCross™ HD

• DFR™ Technology

• Physiology Tablet

• IVUS Tablet

Mitral Valve

Replace & Repair• Millipede acquisition4

TAVR• ACURATE neo2™

• LOTUS Edge™

• SENTINEL™ embolic

protection

LAAC• Watchman™

• Watchman FLX™

• TruSeal™Access System

Interventional Oncology• TheraSphere™ Y904

• Cryo & Microwave

Ablation4

• Emerging Markets

Venous• VICI™ stent

• AngioJet™ / Zelante™

catheters

• Pulmonary Embolism

with EKOS™ System4

Arterial: Drug-Eluting

Technologies• ELUVIA™ DES

• Ranger™ DCB

• SAVAL™ DES for CLI

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Rhythm & Neuro:

Category Leadership & Multiple New Growth Drivers

ElectrophysiologyCRM

Core CRM• RESONATE™ with

HeartLogic™

• ACCOLADE™ MRI with

INGEVITY™ pacing lead

• VALITUDE™ X4 Quad

CRT-P

Implantable Cardiac

Monitor• LUX Dx™ arrhythmia

monitoring device

Therapeutic Catheters• DirectSense™

technology

• Force Sensing

technology

Mapping & Navigation• RHYTHMIA™ HDx

• LUMIPOINT™ software

Neuromodulation

Deep Brain Stimulation• Vercise™ directional

primary cell

• Brainlab partnership

Spinal Cord Stimulation• WaveWriter™ SCS with

combination therapy

• RF Ablation

Additional investments• Multiple new

neurology indications

Single Shot Therapies• Apama RF balloon

catheter system

• Cryterion cryothermal

energy platform

Modular CRM: mCRM™

• EMBLEM™ MRI S-ICD

• EMBLEM™ S-ICD with

EMPOWER™ leadless

pacer

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Strong Product Pipeline Supports Top Tier Growth

2021E / 2022E2019E 2020E

Coronary Therapies

• SYNERGY™ DES 4.5/5.0

• MAMBA™ microcatheters

• ROTAPRO™ Atherectomy System

• OptiCross™ HD

Structural Heart

• WATCHMAN FLX™ LAAC Device – EU

• WATCHMAN™ LAAC Device – Japan

• ACURATE neo™ Valve System – Int’l expansion

• ACURATE neo2™ Valve System – EU

• LOTUS Edge™ Valve System – U.S. & EU

• Sentinel™ CPS – Int’l expansion


• ELUVIA™ DES SFA

• VICI™ Venous Stent – U.S.

CRM/EP

• Apama RF & Cryterion PVI Balloons – EU

Neuromodulation

• Expanded DBS platform

Endoscopy

• SpyGlass™ Visualization System next gen

• EXALT™ single-use duodenoscope launch

Urology/Pelvic Health

• LithoVue™ Ureteroscope next gen

• 5 additional launches in Stone

• SpaceOAR™ – Int’l expansion

Coronary Therapies

• SYNERGY™ XD Stent and 48 Stent

• MEGATRON™ Stent

• COMET™ II pressure wire

Structural Heart

• WATCHMAN FLX™ LAAC Device – U.S.

• ACURATE neo™ Valve expanded sizes – EU

• LOTUS Edge™ Valve System – Japan

• Sentinel™ CPS – Int’l expansion


• Ranger™ DCB SFA – U.S. & Japan

• Interventional Oncology Embolic Coils

• Athletis™ PTA Balloon

• IVUS Catheter

CRM/EP

• LUX Dx™ ICM Monitoring

• Force Sensing Catheter – EU

Neuromodulation

• SCS & DBS Next Gen – U.S. & EU

Endoscopy

• Single-use scope platform expansion

• AXIOS™ Stent expanded indications – U.S.


• nVision MAKO 7 Device with expanded claim

• Multiple launches in Stone

• Multiple launches in Men’s Health

• Next Gen Greenlight fiber for BPH

Coronary Therapies

• AGENT™ Drug Eluting Balloon

• Physiology/IVUS Multi Modality Tablet

Structural Heart

• WATCHMAN FLX LAAC Device – China

• ACURATE neo™ Valve expanded sizes – U.S.

• ACURATE neo2™ Valve System – U.S. & Japan

• LOTUS Edge™ Valve expanded sizes – U.S. & EU

• Millipede IRIS Transcatheter Mitral Valve Repair - EU


• SAVAL™ Drug Eluting Stent BTK

CRM/EP

• Empower™ Leadless Pacing/modular CRM – U.S.

• Next Gen CRM PG

• Apama RF & Cryterion PVI Balloons – U.S.

• Force Sensing Catheter – U.S.

Neuromodulation

• SCS & DBS Next Gen – U.S./EU

Endoscopy

• Single-use scope platform expansion


• Multiple launches in Stone

• Multiple launches in Men’s Health

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BTG At-A-Glance:

Strong Strategic Fit + Compelling Value Creation

Strategic & Financial

RationaleHigh Growth Business Segments

• BTG Interventional Med

provides high growth and

strong synergies to BSX PI

• High growth expansion in

cancer therapeutics

• Strong margin & cash flow

• Compelling shareholder

returns

• Execution sweet spot

Interventional

Medicine

$172M, +15-17%

Specialty

Pharma

$168M, LSD

Licensing

$156M

Interventional Medicine:

•Durable double-digit

revenue growth

•Revenues 90% U.S. based;

strong geographic

expansion opportunities

Specialty Pharmaceuticals:

•Unique portfolio with

attractive profitability

• Lean business; largely

independent of IM business

Licensing:

•Requires no

integration

•Cash business with

limited/no overhead

• Zytiga ruling (Nov 19)

in-line with deal

expectations

Immediately $0.02 - $0.03 accretive to BSX 2019 adj. EPS*

Significant synergies of $175M+ expected (yr. 3)

(Six month Interim 2018/2019 Revenue and FY 2018/2019 Growth Outlook)6

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Provides a Differentiated and Comprehensive Portfolio in the

Fast Growing Peripheral and Oncology Market

Guide-

wiresDrug

Elution

Stents

Balloons

Crossing

Catheters

(Roxwood)

Vena Cava

Filter

(Sentry)

Coils Micro-

catheters

Guidewires

Radio-

Embolization

Beads

(TheraSphere™)

Cryo &

Microwave

Ablation

(Galil)

Acoustic Pulse

Thrombolysis

(EKOS™)

Superficial

Venous

Disease

(Varithena™)

Venous

Stents

& IVUS

Mechanical

Thrombectomy

&

ArterialInterventional Oncology Venous

Segment Size: ~$1.6B

Growth: ~8%


Growth: ~7%


Growth: ~6-7%

Not all products and/or indications are available in all territories.

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20.2%

22.3%

24.1%

25.0%

25.5-

25.75%

+50-100 bps Y/Y

30+%

2014 2015 2016 2017 2018E 2019E 2020E Long Term

Opportunity for Differentiated Operating Margin Expansion

Key ContributorsOpportunity beyond 2020 for 30%+ adjusted OM*

3

• SG&A productivity

– Functional expansion of Global

Business Services

– Optimizing ‘back office’ via

Centers of Excellence

– Implementation of robotic

process automation (RPA)

• Launches & commercial scale

of acquisitions + key products

• R&D efficiencies

• 5-10% annual standard cost

improvements

• Ongoing manufacturing site

optimization

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2017 2018E 2019E 2020E

Tax Reinvestment Post-Reinvestment Estimated Tax Rate7

13% ~13% ~13%

• Previously expected operational tax rate7 of ~15% in

2019+

• Now, expect an operational tax rate7 of ~13% in

2019+, which reflects roughly equal benefit from

both our tax reinvestment strategy and favorable

OUS tax rates

‒ Q2:18 adjusted EPS included $82 million, or $0.06, benefit

from finalization of the IRS Stipulation of Settled Issues

‒ Reinvested substantially all this $0.06 benefit in Q4:18 to

optimize our structure, leveraging differences in tax rates

by jurisdiction

Long Term Operational Tax Rate7 of ~13%

3

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~$1.9B

~$2.15B

~$2.4B

2018E 2019E 2020E

Building on Strong FundamentalsStrong Adj. Free Cash Flow* Outlook

Strong Cash Flow Outlook, Conservative Capital Structure

• Improved ability to deploy adj. free cash flow*

– 5% of 2019E-2020E adjusted free cash flow* reserved for

legal/tax audit settlements vs. 65% 2015-2018E

• Continued financial discipline around acquisitions

and investments

• Commitment to investment grade ratings

• Targeted Debt/EBITDA Leverage Ratios including

BTG acquisition4:

~2.6x by YE 2018E

~3.3x by YE 2019E

~2.6x by YE 2020E

3

95% of 2019E-2020E adjusted free cash

flow* available to deploy

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2018E

Goals

2019E & 2020E

OperationalRevenue* Growth

+8%1 +7-10%

Contribution from Recent M&A

+80bps1 inorganic

(Symetis, NxThera, Claret, Augmenix)

+150bps

(organic/inorganic split TBD based on deal size & timing of anniversaries)

Organic Revenue* Growth

+7%1~+6-9%

(organic/inorganic split TBD based on deal size & timing of anniversaries)

Adjusted Op. Margin*

+50-75bps3 Y/Y +50-100bps Y/Y

Adjusted Tax Rate* ~12%3 ~13%7

Adjusted EPS* Growth +10-11%3 Double-digit goal

Consistent and Strong Financial Outlook

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Appendix

References and Non-GAAP Reconciliations

22

Business Development Activity

Target Business DescriptionClosing

DateUpfront

($M)

Max Milestone

($M)

Potential Total($M)

CommentsTarget

Commercial Launch

Acquisitions – 2018

1 Endoscopy RF ablation for GI cancer Mar-18 10 — 10"Drop in the bag" for biliary franchise; minor revenue contribution

2018

2Rhythm Management

Esophageal temp monitoring

Mar-18 40# 10 50"Drop in the bag" for EP franchise;minor revenue contribution 2019

3Urology / Pelvic Health

Minimal invasive therapy for BPH

Apr-18 240#

85 325Category leadership for urologist in-office prostate health 2018


Potential platform for earlier diagnosis of ovarian cancer

Apr-18 150 125 275Confirmatory study underway with results targeted H2:19E;minor revenue contribution

2020

5Rhythm Management

Single shot therapy -pulmonary vein isolation Jul-18 202

#— 202

Target CE Mark YE19;minor revenue contribution 2020

6 IC - Structural HeartEmbolic protection (TAVR, etc.) Aug-18 220 50 270

US NTAP reimbursement in effect Oct 1, 2018 2018

7Peripheral Interventions Peripheral venous stent Aug-18 108

#52 160

"Drop in the bag" for PI Venous franchise; filed PMA mid-2018 2019


Organ protection in prostate cancer radiation therapy

Oct-18 500 100 600Category leadership for urologist in-office prostate health;~$50M sales FY2018E

2018

Total: $ 1,470 $ 422 $ 1,892

Pending Close – 2019

1 IC - Structural HeartTMVR - Full annuloplasty ring for mitral repair Q1:19E 325# 450 540 Initial $90M investment made 2018 TBD

2Peripheral Interventions

IO, venous and arterial portfolio additions H1:19E 4,200 — 4,200

Includes specialty pharmaceuticals and licensing segments

2019

#Previously held equity investment; purchase price represents cash paid for remaining stake not already owned

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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 7, 2019

2Based on preliminary, unaudited internal estimates

3Based on 2018 guidance issued October 24, 2018

4Millipede and BTG acquisitions are signed, pending close

5Based on midpoint of 2018 guidance issued October 24, 2018 and preliminary, unaudited sales results issued January 7, 2019

6Results six months ended Sept 30, 2018 and outlook twelve months ending March 31, 2019, as reported in BTG interim results

7Estimated tax rate is operational and excludes discrete tax items, such as the benefit related to adoption of ASU 2016-09

tPrior period segment amounts revised in accordance with ASC 280, Segment Reporting, to reflect the reclassification of

Neuromodulation from the MedSurg segment to the Rhythm and Neuro segment, effective January 1, 2018. In addition, regional

totals reflect the reclassification of Middle East and Africa from the former AMEA region to Europe, also effective January 1, 2018.

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Supplemental Non-GAAP Disclosures

25


26


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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 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.


37th Annual JP Morgan Healthcare Conference

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