Intuitive Surgical JP Morgan Presentation

7/25/2019 Intuitive Surgical JP Morgan Presentation

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JP Morgan Healthcare

Conference 2016

Gary GuthartPresident and CEO


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Forward Looking Statement

These slides and any accompanying oral presentationby Intuitive Surgical, Inc. contain estimates and

forward-looking statements. Actual results may differ

materially from those expressed or implied as a result

of certain risks and uncertainties. These risks and

uncertainties are described in detail in the Companys

Securities and Exchange Commission filings.


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Agenda

2015 Review

da Vinci Value

Opportunities/Catalysts

2016 Priorities


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2015 Objectives Expanding da Vinciin general

surgery, particularly colorectal

surgery and hernia repair

Filling out our product line for

da VinciXiand launching in key

markets globally

Developing our organizational

capabilities and markets in

Europe and Asia Advancing our technologies to

improve surgery

Lowering our direct product costs

Areas of Strength

General surgery growth

International procedure

growth

da Vinci Xi product line

and feature set

Growing acceptance of

robotic -assisted surgery

Extensive, established

da Vinci ecosystem

Challenges Structural barriers in

some markets

Single-Siteprocedures

2015 Commentary


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Worldwide Procedure Trend

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2010 2011 2012 2013 2014 2015 2016

Urology Gynecology General Surgery Other

2015:

14% Growth

2016 Guidance:

9-12% Growth

Company estimates


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0

100,000

200,000

300,000

400,000

500,000

2010 2011 2012 2013 2014 2015

Urology Gynecology General Surgery Other

+11%

US Procedure Trend

Company estimates


7/25Company estimates

OUS Procedure Trend

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2010 2011 2012 2013 2014 2015

Europe Asia Rest of World

+26%


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System Placement Trend by Region

0

20

40

60

80

100

120

140

160

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015

U.S. Europe Asia Rest-of-World

2015 +14%


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System Placement Trend by Platform

0

20

40

60

80

100

120

140

160

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015

Xi Si S / Sie

2015 +14%


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Total Revenue*

$0

$500

$1,000

$1,500

$2,000

$2,500

2010 2011 2012 2013 2014 2015

Systems Service Inst & Accy

2015

70%

Recurring

*Dollar amounts in millions


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Annual Service Rev Per System

da VinciSurgical System ASP

Inst & Accy Rev Per Procedure

Multiple Segment Product Offering

$0.6M

$170K$100K

$3,200$700

$2.5M

da Vinci Si-e

Single-Site

Dual ConsoleXi

Firefly

Table Motion

Endowrist

Vessel Sealer

Stapler

2015: $1.54M

2015: $1,840

2015: $138K Dual ConsoleXida Vinci Si-e

Includes company estimates and approximate ranges


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DA VINCI VALUE


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Length of stay

Conversions to open surgery

Complications

Readmissions

Surgical site infections (SSI)

Instrument and accessory costs

Comprehensive Cost of Care

Capital costs

OR time costs


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Family of da Vinci Systems ~1400 Skill Simulators,Dual Surgeon Consoles

3D HD Imaging,

Fluorescent Imaging

24/7/365

Comprehensive

Support

Integrated Energy,

Stapling, Vessel Sealing

40+Training

Course Offerings

10,000Peer-Reviewed Publications

1700+ Comparative Studies

Analytics and

Efficiency Programs

da Vinci Ecosystem


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OPPORTUNITIES AND CATALYSTSFOR GROWTH


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Open Surgery Remains CommonU.S.

Yr: 2004

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Prostate Malignant

Hyst

Benign Hyst

Robotic Other MIS Open

Source: ISI estimates and third party data


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Yr: 2015

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Prostate Malignant

Hyst

Benign Hyst


Source: ISI Data as well as Estimates


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Yr: 2015

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Prostate Malignant

Hyst

Benign Hyst Colorectal Ventral

Hernia

Thoracic


Source: ISI estimates and third party data


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Total Procedure Markets

As many as 4 million procedures available forproducts on the market today in countries for

which we have clearances

Over time, international opportunity will begreater than U.S.

Roughly half of opportunity based on

underlying cancer as cause


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ISI Investments

Advanced imaging

Advanced instrumentation and computer-

enhanced precision at tissue

Less invasive access Training technologies

Next generation robotic technologies

International organization

Continued clinical and economic validation


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Building da Vinci Xi Value:

NewXiProducts / Markets

Vessel Sealer andFirefly launched 2014

Korea Clearance Q4 14

45 mmStapler launched Q1 15

Clearance in Japan end of Q1 15 Harmonic curved shears and other new

instruments FDA Cleared Q215

Table motion CE Marked and 510(k)

submitted in Q2 15 Single-Site510(k) submitted Q3 15

30 mm Stapler 510(k) submitted Q3 15


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da Vinci Sp

Video plays at an accelerated speed.


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2016 PRIORITIES


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2016 Priorities

Expand da Vinci in thoracic and general surgery,particularly colorectal surgery and hernia repair

Advance key technologiesextend our product

leadership position

Drive international performance and strengthen

our organization

Maximize total-cost-to-treat value for customers


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Intuitive Surgical JP Morgan Presentation

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