Boston Scientific Corporation · NYSE:BSX
Boston Scientific — J.P. Morgan Healthcare Conference 2021
23 slides from Boston Scientific's conference presentation, Apr 21, 2021
Slide 1: Mike Mahoney, Chairman and Chief Executive Officer
Mike Mahoney Chairman and Chief Executive Officer
Slide 2: Safe harbor for forward-looking statements
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,"
Slide 3: Regulatory disclaimers
Regulatory disclaimers Product Regulatory Disclaimer EXALT™ Model B Device under development. Not available for use or sale worldwide. LithoVue™ Elite Device under development. Not available for use or sale worldwide. ACURATE neo2™ self-expanding valve platform CE Marked. U.S.: Caution: Investigatio
Slide 4: Financial disclaimers
Financial disclaimers Market Estimates: Unless noted otherwise, all references to market sizes, market share positions, and market growth rates are BSX internal estimates. Non-GAAP Financial Measures: This presentation contains non-GAAP measures (denoted with *) in talking about our company’s perfor
Slide 5: Our Mission and Values
Our Mission and Values Boston Scientific is dedicated to transforming lives through innovative medical solutions that improve the health of patients around the world. Meaningful High Global Diversity & Winning Caring Innovation Performance Collaboration Inclusion Spirit 5
Slide 6: Snapshot 2020
Snapshot 2020 Global reported revenue ~$10B1 LACA $0.3B Urology & Pelvic Health $1.3B Interventional APAC Cardiology $1.8B $2.3B Diverse Continued Endoscopy portfolio with global $1.8B increasing expansion & US exposure to significant EM $5.5B high growth Peripheral opportunity markets Interventions
Slide 7: High performance track record
High performance track record Revenue Adjusted Operating Margin* Adjusted EPS* Reported revenue, Y/Y operational* growth Adj. operating margin* goal Adj. EPS* growth goal Y/Y organic* growth rates Organic* revenue growth goal +DD% 30%+ +6-8% Y/Y $10.7B $1.58 $9.8B 26.1% $1.47 +11% 25.5% +13%3 $9.0B
Slide 8: Fourth quarter & full year 2020 results
Fourth quarter & full year 2020 results1 Revenue Organic* revenue growth FY:20 FY:19 Q4:20 FY:20 Key Q4:20 Commentary IC $2.3B 10% -23% -18% • Total company -8.0% organic includes 370 bps ($106M) headwind related to Watchman consignment reserves PI $1.6B 8% 5% -3% - Global sales impacted by increase
Slide 9: What to expect from BSX: 2021
What to expect from BSX: 2021 • Recovery driven by compelling portfolio, new launches, and lessening COVID impact throughout 2021 • Continued execution of category leadership strategy & portfolio diversification into higher growth markets • Multiple 2020 product approvals & reimbursement wins combin
Slide 10: Consistent portfolio diversification into higher growth markets
Consistent portfolio diversification into higher growth markets BSX portfolio revenue mix: wide exposure to faster growth markets drives ex-COVID organic* growth +6-8% High growth markets (>7% CAGR): $11B ~35% IC (Structural Heart), PI (Arterial, Venous, IO) RM (EP, ICM), NM (MIS Pain, DBS) Endo (S/
Slide 11: Key growth drivers: MedSurg
Key growth drivers: MedSurg Endoscopy Urology & Pelvic Health • EXALT™ D duodenoscope Single-use • EXALT™ B bronchoscope • LithoVue Elite™ single-use Scopes (H2:21E) Stone flexible ureteroscope (2021E) • SpyGlass™ DS II cholangioscope Disease • Comprehensive device portfolio Pancreatico- • AXIOS™ tr
Slide 12: Key growth drivers: Cardiovascular
Key growth drivers: Cardiovascular Interventional Cardiology Peripheral Interventions • ELUVIA™ DES • Watchman FLX™ LAAC Arterial • Ranger™ DCB Structural • ACURATE™ TAVR • SAVAL™ DES (BTK, 2022E) Heart • SENTINEL™ embolic protection • Millipede mitral valve repair (U.S. EFS 2021) Interventional • T
Slide 13: Key growth drivers: Rhythm & Neuro
Key growth drivers: Rhythm & Neuro Rhythm Management Neuromodulation • HeartLogic™ heart Cardiac Rhythm failure diagnostic • WaveWriter Alpha™ Spinal Management • EMBLEM™ S-ICD with Cord Stimulation EMPOWER™ leadless Pain • Superion™ spacer for pacer (FIH 2021) moderate lumbar spinal stenosis • POLA
Slide 14: Enhanced capabilities: Digital acceleration
Enhanced capabilities: Digital acceleration Medical Education & Customer Engagement Remote Case Support Mobile Ordering Clinical Trials • Digital marketing, patient • Enabling teleproctoring & • Introduced next generation • Offering direct, mobile awareness, commercial model virtual medical educatio
Slide 15: Financial strength & flexibility
Financial strength & flexibility • Tuck-in M&A remains #1 priority: Focused on high growth adjacent markets • Active VC portfolio: ~$500M across 40 companies • Opportunistic share repurchase: $535M in Q4:20 & new authorization for up to $1B • Solid 2020 cash flow in COVID environment • Strong liquid
Slide 16: Living our values
Living our values Transforming Care Investing in Our People Creating Value Responsibly Newsweek’s ~$1 billion 99%+ America’s Most gender pay equity Responsible Companies invested in R&D ~30 million Top 10% globally recognized leader patients served for workplace inclusion Advancing Possibilities Pro
Slide 17: What to expect from BSX: 2021
What to expect from BSX: 2021 • Recovery driven by compelling portfolio, new launches, and lessening COVID impact throughout 2021 • Continued execution of category leadership strategy & portfolio diversification into higher growth markets • Multiple 2020 product approvals & reimbursement wins combin
Slide 18: References and non-GAAP Disclosures
References and non-GAAP Disclosures
Slide 19: Acronym Reference Guide
Acronym Reference Guide BPH Benign Prostatic Hyperplasia IO Interventional Oncology BTK Below-the-Knee LAAC Left Atrial Appendage Closure CRM Cardiac Rhythm Management MIS Minimally Invasive Surgery DBS Deep Brain Stimulation NM Neuromodulation DCB Drug Coated Balloon PCI Percutaneous Coronary Inter
Slide 20: References
References *Non-GAAP measure; for reconciliations of non-GAAP financial measures to the most directly comparable GAAP figures, please refer to the schedules within the Appendix of this document. 1Based on preliminary, unaudited sales results issued January 12, 2021 2Full year 2018 adjusted earnings
Slide 21: Supplemental Non-GAAP Disclosures
Supplemental Non-GAAP Disclosures Less: Impact of Less: Impact of Recent Foreign Currency Operational Acquisitions / Organic FY 2020 Divisional Revenue Growth1(unaudited) compared to FY 2019 Reported Basis Fluctuations Basis Divestitures Basis Endoscopy -6.0% 0.3% -6.3% 0.0% -6.3% Urology & Pelvic H
Slide 22: Supplemental Non-GAAP Disclosures
Supplemental Non-GAAP Disclosures Less: Impact of WATCHMANTM Revenue Growth Q4 2020 1 Less: Impact of Recent Revenue growth, as reported -55% Foreign Currency Operational Acquisitions / Organic Less: Impact of foreign currency fluctuations 1% FY 2019 Divisional Revenue Growth Reported Basis Fluctuat
Slide 23: Supplemental Non-GAAP Disclosures
Supplemental Non-GAAP Disclosures Earnings Per Diluted Share 2019 3 2018 2 2017 2016 2015 GAAP net income (loss) per share 3.33 $ 1.19 $ 0.08 $ 0.25 $ (0.18) Amortization expense 0.44 0.37 0.35 0.35 0.33 (a) Intangible asset impairment charges 0.07 0.02 - 0.01 0.01 (a) Acquisition/divestiture-relate
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