Investor PresentationQ3 2015
Forward Looking Statement
These slides and any accompanying oral presentation by
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 Company’s Securities and Exchange Commission
filings.
Risks
Serious complications may occur in any surgery, including da
Vinci® Surgery, up to and including death. Individual surgical
results may vary. Patients should talk to their doctor to
decide if da Vinci® Surgery is right for them. Patients and
doctors should review all available information on non-
surgical and surgical options in order to make an informed
decision. Please also refer to
http://www.daVinciSurgery.com/Safety for Important Safety
Information.
Contents Outline
• Company Overview & Business
Model
• Business Review
• Opportunities & Catalysts for
Growth
• Corporate Assets & 2015
Priorities
Corporate Overview and
Business Model
Corporate Overview• Founded in 1995, IPO 2000
• Approximately 570,000 da Vinci® procedures performed in 2014, up 9% from 2013
– First half 2015 procedures up approximately 13%
• 2014 Revenue - $2.13B, down 6% from 2013
– Capital -24%, Recurring +5%
– First half 2015 Non-GAAP Revenue* up 12%
• 3,398 da Vinci® System installed base as of 6/30/15
– 2,295 United States, 573 Europe, 530 Rest of World
• Numerous FDA and International Regulatory Clearances
• Primary Markets - Urology, Gynecology, General Surgery, Cardiothoracic
.*Non-GAAP Revenue of H114 included $19.9 million of net revenue associated with da Vinci Xi trade-
out offers. Non-GAAP Revenue for H115 was equal to GAAP revenue.
Annual Service Agreement
$100K - $170K/Year
2014 Rev = $429M
da Vinci® Surgical System
$0.6M - $2.5M
2014 Rev = $633M
Instruments & Accessories
$700-$3,200 per procedure
2014 Rev $1,070M
Recurring Revenue Model
Annual Service Rev Per System
da Vinci® Surgical System ASP
Inst & Accy Rev Per Procedure
2014 Range of Pricing to Meet Multiple
Segments
$0.6M
$170K $100K
$3,200$700
$2.5M
da Vinci Si-e
Single-Site™
Dual Console Xi
Firefly™
Endowrist®
Vessel Sealer
Stapler
Typically Benign Typically Cancer
2014: $1.5M
2014: $1,880
2014: $140K Dual Console Xida Vinci Si-e
Includes company estimates and approximate ranges
Business Review
• Areas of Strength
– Procedure growth – U.S. general surgery, U.S. dVP macro
trends, and international
– Expanding da Vinci Xi market and platform
• Japan Clearance End of Q1 15
• Phase 2 instruments shipping Q2 15
• Xi Table motion CE marked and FDA submission in Q2 15
• Xi Single-Site FDA submission H2 15
– Stapler
• U.S.: Resumed shipping Si version and launched Xi version
• Europe: Obtained CE Mark status for Si and Xi versions
• Challenges
– Gross margin pressure – Fx headwinds; new product
costs
First Half 2015 Commentary
Annual Worldwide Procedures
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2009 2010 2011 2012 2013 2014 2015
Urology Gynecology General Surgery Other
Company Estimates
2015 Guidance:
11-13% Growth
2014:
9% Growth
Company estimates
U.S. Urology Procedures
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2006 2007 2008 2009 2010 2011 2012* 2013 2014
Prostate Kidney Other
Company estimates
* U.S. Preventive Services Task Force Recommends Against PSA testing 5/2012
0
50,000
100,000
150,000
200,000
250,000
2009 2010 2011 2012 2013 2014
Benign Hysterectomy Malignant Hysterectomy Other
U.S. Gynecology Procedures
Company estimates
U.S. General Surgery Procedures
0
20,000
40,000
60,000
80,000
100,000
120,000
2009 2010 2011 2012 2013 2014
Upper GI / HPB Lower GI / Colorectal Other
Company estimates
�Approximately 121,000 procedures performed in 2014, up 20% from 2013; H1 2015 up 25%
�Strength in Asia procedures
�Strength in EU systems and procedures
�Significant investments supporting long term growth
�Japan: Buildout of direct sales structure, efforts to obtain additional reimbursements
�Europe: Clinical data and analysis, sales coverage
International Performance
OUS Annual Procedures
Company Estimates
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2009 2010 2011 2012 2013 2014
Europe Asia Rest of World
Company estimates
da Vinci Xi
� Designed for multi-quadrant
surgical access
� Narrower arms with greater
reach
� Lighter, slimmer endoscopes
that can move between ports
� Computer assisted, streamlined
set up
� Compatible surgical simulator
Why Xi Matters
“Despite my obvious interest in minimally
invasive surgery I had resisted adopting previous
da Vinci platforms because of what I felt were
limitations. The da Vinci Xi platform is a game
changer for me. I now feel that this technology
will not just equal my standard laparoscopic
abilities but actually will allow me to reach new
levels in providing surgical care to my patients.”
B. Harkins, MD, FACS General Surgeon, Texas
System Placement Trend
0
20
40
60
80
100
120
140
160
Q1 Q2 Q3 Q4 Q1 Q2
2014 2015
U.S. Europe Japan Rest-of-World
System Mix Trend
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q114 Q214 Q314 Q414 Q115 Q215
U.S. System Mix
S / Sie Si Xi
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q114 Q214 Q314 Q414 Q115 Q215
Worldwide System Mix
S / Sie Si Xi
Europe
573
Europe
573
Europe
573
USA
2,295
USA
2,295
USA
2,295
Australia/New
Zealand 36
Japan 206South Korea 52
China 46India 31
Taiwan 26Singapore 7
Thailand 6Other 9
Installs by Country and Region
Saudi Arabia 14Israel 7Qatar 6Other 9
Middle
East
36
Brazil 16Mexico 7
Argentina 6Chile 5
Other 12
Latin
America
46
Denmark 17Norway 11
Czech Republic 7Austria 6Finland 5Ireland 3Other 3
DistributionItaly 83
Turkey 33Spain 31
Russia 25Greece 9
Romania 7Other 11
DirectFrance 88
Germany 76UK 52
Belgium 33Switzerland 28
Sweden 25 Netherlands 20
Asia
383
Asia
383
Asia
383
Canada 25
Intuitive sells directly to customers in the US, Korea, Japan, and the European countries indicated
above. Sales are through distributor partners in all other areas of the world including, Canada, Latin
America, the Middle East, Asia and Australia.
South Africa 4
da Vinci® System Installed Base
Trended da Vinci® System Installed
Base
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q210 Q211 Q212 Q213 Q214 Q215
United States
International
Opportunities and Catalysts for
Growth
Open Surgery Remains Common – U.S.
Source: ISI data as well as estimates
Yr: 2004
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Prostate Malignant
Hyst
Benign Hyst
Robotic Other MIS Open
Open Surgery Remains Common – U.S.
Source: ISI Data as well as Estimates
Yr: 2014
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Prostate Malignant
Hyst
Benign Hyst
Robotic Other MIS Open
Open Surgery Remains Common – U.S.
Source: ISI data as well as estimates
Yr: 2014
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Prostate Malignant
Hyst
Benign Hyst Colorectal Ventral
Hernia
Thoracic
Robotic Other MIS Open
Open Surgery Remains Common – OUS
Source: ISI data as well as estimates. OUS defined as Western Europe, Canada, Australia, South Korea and Japan
Yr: 2014
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Prostate Malignant
Hyst
Colorectal Gastrectomy Thoracic
Other MIS Robotic Open
Total Procedure Markets
• We estimate 2 – 4 million procedures available
for products on the market today in countries
for which we have clearances
• Over time, opportunity OUS will be greater
than U.S.
• Roughly half of opportunity based on
underlying cancer as cause
Clinical and Economic Validation –
Overview of the Database
• To date, there are approximately 9,500 peer-reviewed clinical
publications studying da Vinci use
• Approximately 99% of these studies are independent of ISI
• Of these, approximately 1,400 are comparative studies
• In 2014, 1,600 new studies were published, of which ~400
were comparative
• There are now approximately 25 government sponsored
assessments of da Vinci surgery spanning ~14 countries
Which is the right
comparison?
Populations Matter(e.g., Rectal Resection)
Laparoscopy
Open Surgery
da Vinci LAR
Ma
rke
t S
ha
re %
MIS Surgeon Perspective
dV vs Lap}
Patient Perspective
Open vs MIS}
Areas of Investment in Clinical and
Economic Analyses
• U.S. – Hernia registry, Gynecologic Oncology
registry
• Japan – Urology and General Surgery
• Germany – Urology and General Surgery
• U.K. – Colorectal registry
• France – Colorectal registry
• Numerous economic studies
ISI Investments to Improve Surgery
• Advanced imaging (e.g., Firefly Fluorescence
Imaging)
• Computer-enhanced precision at tissue (e.g.,
Smart-clamp for stapling)
• Less invasive access (e.g., single-port and
natural orifice surgery)
• Training technologies (e.g., simulation, dual-
console, setup assist)
Product Milestones• Continue da Vinci Xi Product
Launch:
– Xi Vessel Sealer launched Q2 14
– Xi Firefly launched Q3 14
– Clearance in Korea Q4 14
– Xi Stapler launched Q1 15
– Clearance in Japan end of Q1 15
– Xi Table motion CE Marked and
FDA submitted in Q2 15
– Xi Single-Site submission expected
H2 15
• Single-Site wristed needle driver
for Si launched Q4 14
Integration of da Vinci Sp
Current Xi Configuration
• Deliver technical milestones in 2015
• Initiate customer evaluations
Integration of da Vinci Sp
Xi with Sp Patient Cart and Instruments
• Deliver technical milestones in 2015
• Initiate customer evaluations
2015 Priorities and
Corporate Assets
2015 Priorities
• Drive adoption of colorectal surgery and hernia
repair
• Complete da Vinci Xi launch – additional products
and international markets; reduce product costs
• Develop market and organizational capabilities in EU
and Asia
• Initiate customer learning on da Vinci Sp
� Extraordinary people
� 3,398 da Vinci® System installed base 6/30/15
� Numerous FDA and international regulatory clearances
� Extensive instrument and accessory product line
� Intuitive Surgical training centers worldwide
� Ownership of or exclusive rights to over 1,850 U.S. and
foreign patents and more than 1,530 US and foreign
patent applications
� da Vinci® patient awareness
Corporate Assets
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