Investor Presentation Q2 2015

Transcription

1 Investor Presentation Q2 2015

2 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.

3 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 nonsurgical and surgical options in order to make an informed decision. Please also refer to for Important Safety Information.

4 Contents Outline Company Overview & Business Model Business Review Opportunities & Catalysts for Growth Corporate Assets & 2015 Priorities

5 Corporate Overview and Business Model

6 Corporate Overview Founded in 1995, IPO 2000 Approximately 570,000 da Vinci procedures performed in 2014, up 9% from 2013 Q115 procedures up approximately 13% 2014 Revenue - $2.13B, down 6% from 2013 Capital -24%, Recurring +5% Q115 Non-GAAP Revenue* up 9% 3,317 da Vinci System installed base as of 3/31/15 2,254 United States, 556 Europe, 507 Rest of World Numerous FDA and International Regulatory Clearances Primary Markets - Urology, Gynecology, General Surgery,. Cardiothoracic *Non-GAAP Revenue of Q114 included $25.6 million of net revenue associated with da Vinci Xi tradeout offers. Non-GAAP Revenue for Q115 was equal to GAAP revenue.

7 Recurring Revenue Model Instruments & Accessories $700-$3,200 per procedure 2014 Rev $1,070M Annual Service Agreement da Vinci Surgical System $0.6M - $2.5M 2014 Rev = $633M $100K - $170K/Year 2014 Rev = $429M

8 2014 Range of Pricing to Meet Multiple Segments da Vinci Si-e $0.6M 2014: $1.5M da Vinci Surgical System ASP $2.5M Dual Console Xi Firefly Single-Site $ : $1,880 Inst & Accy Rev Per Procedure $3,200 Endowrist Vessel Sealer Stapler da Vinci Si-e 2014: $140K Dual Console Xi $100K Typically Benign Annual Service Rev Per System $170K Typically Cancer Includes company estimates and approximate ranges

9 Business Review

10 2014 Commentary 2014 Objectives Drive adoption in General Surgery Launch key new products da Vinci Xi Increase organizational capability in direct international markets Areas of Strength General Surgery growth European capital and clinical performance Clinical performance in Asia Xi Launch Wristed needle driver development Challenges Stapler stop-use US Gynecology macroenvironment Single-Site Cholecystectomy

11 Areas of Strength Procedure growth U.S. general surgery, U.S. dvp macro trends, and international Stapler U.S.: Resumed shipping Si version and launched Xi version Europe: Obtained CE Mark status for Si and Xi versions Received da Vinci Xi clearance in Japan Challenges Q Commentary Gross margin pressure Fx headwinds; new product costs

12 700, , , , , , ,000 Annual Worldwide Procedures 2014: 9% Growth 2015 Guidance: 8-11% Growth Urology Gynecology General Surgery Other Company Estimates Company estimates

13 U.S. Urology Procedures 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, * Prostate Kidney Other * U.S. Preventive Services Task Force Recommends Against PSA testing 5/2012 Company estimates

14 U.S. Gynecology Procedures 250, , , ,000 50, Benign Hysterectomy Malignant Hysterectomy Other Company estimates

15 U.S. General Surgery Procedures 120, ,000 80,000 60,000 40,000 20, Upper GI / HPB Lower GI / Colorectal Other Company estimates

16 International Performance 2014 Revenue - $641M, up from $639M in % of 2014 total revenue Approximately 121,000 procedures performed in 2014, up 20% from 2013; Q up 22% Strength in EU Systems and Procedures Strength in Asia Procedures Significant investments supporting long term growth Japan: Transition to direct sales structure, clinical trials, organizational growth Europe: Sales coverage, clinical data and analysis

17 OUS Annual Procedures 140, , ,000 80,000 60,000 40,000 20, Europe Asia Rest of World Company Estimates Company estimates

18 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

19 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

20 System Placement Trend Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q U.S. Europe Japan Rest-of-World

21 System Mix Trend 100% U.S. System Mix 100% Europe System Mix 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% Q114 Q214 Q314 Q414 Q115 0% Q114 Q214 Q314 Q414 Q115 S / Sie Si Xi S / Sie Si Xi

22 Installs by Country and Region da Vinci System Installed Base Canada 25 Europe 556 USA 2,254 Direct France 86 Germany 74 UK 48 Belgium 33 Switzerland 27 Sweden 24 Netherlands 20 Denmark 15 Norway 11 Czech Republic 7 Austria 6 Finland 5 Ireland 3 Other 4 Distribution Italy 81 Spain 30 Turkey 33 Russia 25 Greece 9 Romania 6 Other 9 Brazil 15 Mexico 7 Argentina 5 Chile 5 Other 12 Latin America 44 Middle East Saudi Arabia Israel 7 Qatar 6 Other 9 South Africa 4 Asia 365 Japan 194 South Korea 50 China 46 India 29 Taiwan 25 Singapore 7 Thailand 6 Other 8 Australia/New Zealand 34 Intuitive sells directly to customers in the US, Korea, and the European countries indicated above. In June 2014 direct sales rights were obtained in Japan. Sales are through distributor partners in all other areas of the world including, Canada, Latin America, the Middle East, Asia and Australia.

23 Trended da Vinci System Installed Base 3,500 United States 3,000 International 2,500 2,000 1,500 1, Q110 Q111 Q112 Q113 Q114 Q115

24 Opportunities and Catalysts for Growth

25 Open Surgery Remains Common U.S. Yr: % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Prostate Malignant Hyst Benign Hyst Robotic Other MIS Open Source: ISI data as well as estimates

26 Open Surgery Remains Common U.S. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Prostate Yr: 2014 Malignant Hyst Benign Hyst Colorectal Ventral Hernia Robotic Other MIS Open Thoracic Source: ISI data as well as estimates

27 Open Surgery Remains Common OUS 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yr: 2014 Prostate Malignant Colorectal Gastrectomy Thoracic Hyst Other MIS Robotic Open Source: ISI data as well as estimates. OUS defined as Western Europe, Canada, Australia, South Korea and Japan

28 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

29 Clinical and Economic Validation Overview of the Database To date, there are approximately 8,500 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

30 Market Share % Populations Matter (e.g., Rectal Resection) Open Surgery Which is the right comparison? } Patient Perspective Open vs MIS da Vinci LAR Laparoscopy } MIS Surgeon Perspective dv vs Lap

31 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

32 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, dualconsole, setup assist)

33 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 launch Q1 15 Clearance in Japan End of Q1 15 Xi Table motion submission Q3 15 Xi Single-Site submission H2 15 Single-Site wristed needle driver for Si launched Q4 14

34 Integration of da Vinci Sp Current Xi Configuration Deliver technical milestones in 2015 Initiate customer evaluations

35 Integration of da Vinci Sp Xi with Sp Patient Cart and Instruments Deliver technical milestones in 2015 Initiate customer evaluations

36 2015 Priorities and Corporate Assets

37 Corporate Assets Extraordinary people 3,317 da Vinci System installed base 3/31/15 Numerous FDA and international regulatory clearances Extensive instrument and accessory product line Intuitive Surgical training centers worldwide Ownership of or exclusive rights to over 1,750 U.S. and foreign patents and more than 1,500 US and foreign patent applications da Vinci patient awareness

38 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

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