Professional Documents
Culture Documents
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. Please refer to the
addendum to this presentation for further information regarding these non-GAAP measures and the Investor Relations section of our
website at www.bostonscientific.com.
Market Estimates:
Unless noted otherwise, all references to market sizes, market share positions, and market growth rates are BSX internal estimates.
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BSX and BTG: Focus on Minimally Invasive Therapies
to Address Critical Needs
• Global medical
Focus on • Highly differentiated
technology leader
minimally Interventional
• Leader in Peripheral
invasive Medicine portfolio
Interventions
treatments for focused on oncology
• Worldwide market
today’s most and vascular solutions
access
challenging • Unique Acute Care
• Deep R&D and
Pharma and Licensing
clinical expertise conditions
portfolio
3
Clear Strategic & Financial Rationale
• High growth Interventional Medicine (IM) business accretive to BSX and PI
High Growth
• BTG platform technologies (TheraSphere™, Galil) enable BSX to continue to
Cancer Expansion
expand treatment options for cancer patients worldwide
Strong Margin & • BTG Acute Care Specialty Pharma franchise is a differentiated, profitable
Cash Flow business along with cash generating Licensing assets
Compelling • Immediately $0.02-$0.03 accretive to BSX 2019 adjusted EPS*; more so thereafter
Shareholder • Significant synergies of $175M+ expected (yr. 3); adj. ROIC* 7-8% in yr. 3; 9-10% in yr. 5
Returns • Maintains flexibility for future M&A and commitment to investment grade ratings
• Offering 840 pence in cash per share; committed debt financing in place
Key • Total equity value of £3.3B (U.S. $4.2B), total enterprise value of £3.1B (U.S. $4.0B)
Deal (U.S. values based on November 19 exchange rates)
Terms • The transaction is expected to be effected by way of an English Court sanctioned Scheme of
Arrangement, with closing targeted for H1:2019, subject to receipt of BTG shareholder approval,
customary regulatory approvals and the approval of the English Court
5
BSX Continued Shift to Higher Growth Markets
Revenue Mix by Segment Growth Rate
High Growth Segment (>10% CAGR): NM, TAVR, LAAC, EP, PI Drug Eluting, Venous, ICM, Prostate (MIT/Spacer), MIS URO
Moderate Growth Segment (4 - 8% CAGR): Endo, Core PI, Oncology, UroPH, Women's Health, Complex Coronary
Low Growth Segment (<3% CAGR): Pacer, Defib., DES
2021E
2013 2017
High
Low Growth Growth
~40% Low Growth Low
High High ~35%
Growth Growth ~35% Growth
~10% ~15% ~20%
Moderate
Growth Moderate Moderate
~50% Growth Growth
50% ~45%
Served Market
Y/Y Growth
2-3% 4-5% 5-6%
New Markets & Recent Acquisitions More than Double High Growth Revenue Mix
6
Creating Significant Capabilities for Cancer Care
Therapy/
Cancer WW Annual Incidence1 Recent BSX Acquisitions
Palliation
Prostate 1,300,000 ✓
Liver 850,000 ✓
Breast 2,100,000 Early Stage Therapy used to reduce common,
Colorectal 1,850,000 debilitating side effects after receiving
✓ prostate cancer radiotherapy1
Kidney 400,000 ✓
Lung 2,100,000 Early Stage
Stomach 1,050,000 ✓ Potential diagnostic for ovarian cancer,
300,000 annual incidence2
Esophageal 550,000 ✓
Pancreatic 450,000 Early Stage3
Over 10 Million Cancer Patients Annually Radio Frequency probe for palliative care
of patients living with pancreaticobiliary
cancers
✓ ✓ 1400,000 men will undergo prostate radiotherapy worldwide (Data on file. Boston Scientific. August 2018)
2 InternationalAssociation of Cancer Registries; GLOBOCAN Database: http://gco.iarc.fr/.
3 Equity investment
7
BSX Peripheral Interventions: Portfolio Breadth for
a Large and Growing Sector
PI Category BSX PI
2017 Size Growth 2017-2020 est. CAGR Revenue Growth
8
BSX & BTG Create a Best in Class Portfolio
Addressing $6B M/HSD-Growth Peripheral Market
&
Pipeline: Pipeline:
• Clinical trials in follow up target expanded • Microwave ablation platform in development
indications (STOP-HCC & EPOCH) • Flexible needles for use in other cancers
• Geographic expansion, especially Asia
1International Association of Cancer Registries; GLOBOCAN Database: http://gco.iarc.fr/.
10
Opportunities To Expand Into New Cancer
Therapies
• Licensing
15
Q&A
Appendix A
Non-GAAP Reconciliations
Non-GAAP Reconciliations
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements presented on a GAAP basis, we disclose certain non-GAAP financial
measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the
United States and should not be considered in isolation from or as a replacement for the most directly comparable GAAP
financial measures. Further, other companies may calculate these non-GAAP financial measures differently than we do, which
may limit the usefulness of those measures for comparative purposes. For further information regarding our non-GAAP measures,
see Part II, Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations in our most recent
Annual Report on Form 10-K, which we may update in Quarterly Reports on Form 10-Q we have filed or will file hereafter.
Adjusted Gross Margin: To calculate adjusted gross margin certain charges and/or credits are excluded, such as amortization
expense, acquisition-related net charges/credits, and restructuring and restructuring-related net charges/credits. The GAAP
financial measure most directly comparable to adjusted gross margin is GAAP gross margin.
Adjusted Operating Margin: To calculate adjusted operating margin certain charges and/or credits are excluded, such as
amortization expense, acquisition-related net charges/credits, and restructuring and restructuring-related net charges/credits.
The GAAP financial measure most directly comparable to adjusted operating margin is GAAP operating margin.
Adjusted Earnings Per Share (EPS): To calculate adjusted EPS certain charges and/or credits are excluded, such as amortization
expense, acquisition-related net charges/credits, and restructuring and restructuring-related net charges/credits. The GAAP
financial measure most directly comparable to adjusted EPS is GAAP EPS. On a GAAP basis, the transaction is expected to be
dilutive in 2019, and less dilutive or increasingly accretive thereafter, as the case may be, due to amortization expense and
acquisition-related net charges.
Adjusted Return on Invested Capital (ROIC): Adjusted ROIC is calculated as adjusted net operating profit after tax (NOPAT)
divided by invested capital (defined as purchase price enterprise value plus tax planning costs). To calculate adjusted net
operating profit certain charges and/or credits are excluded, such as amortization expense, acquisition-related net
charges/credits, and restructuring and restructuring-related net charges/credits. The GAAP financial measure most directly
comparable to adjusted operating profit is GAAP operating profit.
Please refer to our Safe Harbor for forward-looking statements disclosure in conjunction with any forward looking information
presented within.
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