Intuitive Surgical
Investor Presentation
Q1 2017
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.
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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.
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Contents Outline
Company Overview and Business Model
Business Review
Investments and 2017 Priorities
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Company Overview and
Business Model
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Company Overview
We strive
to make
more effective,
less less
invasive
and
Intuitive
Surgical
strives surgery
to make surgery
more effective,
invasive
easier
patients
and
their
families.
and
easieron
onsurgeons,
surgeons, patients
and
their
families.
da Vinci® Surgical Systems and advanced instruments and accessories bring
enhanced vision, dexterity and precision to minimally invasive surgery.
Approximately 750K da Vinci procedures were performed in 2016, up 15%.
Over 4 million da Vinci procedures have been performed to date.
3,919 da Vinci® Surgical Systems installed base as of 12/31/16
Primary Markets: Urology, Gynecology, General Surgery, Cardiothoracic
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Recurring Revenue Model
71%
revenue
was recurring.
71% of
of 2016
total 2016
revenue
was recurring.
Instruments & Accessories
$700-$3,500
per procedure
da Vinci® Surgical
System
2016 Rev $1,396M
$0.6M - $2.5M
2016 Rev = $792M
Service
$80K - $170K/Year
2016 Rev = $517M
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Comprehensive Cost of Care
Upfront
drive downstream
savings.
Upfront OR
OR costs
investment
yields downstream
savings.
• Instruments and accessories
• Capital costs
• OR time costs
•
•
•
•
•
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Reduced length of stay
Fewer conversions to open surgery
Reduced complications
Fewer readmissions
Lower infection rates
da Vinci Ecosystem
Supports
and
defines
effective
robotics
programs.
Supporting
and
defining
excellent
robotic
surgery programs.
Family of da Vinci Systems
3D HD Imaging,
Fluorescent Imaging
Integrated Energy,
Stapling, Vessel Sealing
10,000 Peer-Reviewed
Publications
1700+ Comparative Studies
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~1400 Skill Simulators,
Dual Surgeon Consoles
24/7/365
Comprehensive
Support
40+ Training
Course Offerings
Analytics and
Efficiency Programs
Business Review
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2016 Commentary
Objectives
• Expand da Vinci procedures in thoracic and
general surgery, particularly colorectal surgery
and hernia repair
• Advance key technologies – extend our
product leadership position
• Drive international performance and
strengthen our organization
• Maximize total-cost-to-treat value
for customers
Areas of Strength
• Robotic surgery acceptance as evidenced by
procedure growth
• US general surgery growth
• Early US thoracic growth
• Team capabilities
• Product pipeline
• Customer-facing economic tools
Challenges
• Performance in some countries
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Worldwide Procedure Trend
900,000
2016:
15% Growth
2017 Guidance:
9-12% Growth
750,000
600,000
450,000
300,000
150,000
0
2011
Urology
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Company estimates
2012
2013
Gynecology
2014
2015
General Surgery
2016
Other
2017
System Placement Trend by Region
160
140
2016 Annual:
9% Growth
120
100
80
60
40
20
0
Q1
Q2
Q3
Q4
Q1
Q2
2015
U.S.
13
Q3
2016
Europe
Asia
Rest-of-World
Q4
Total Revenue*
$3,000
$2,500
2016:
13% Growth
71% Recurring
$2,000
$1,500
$1,000
$500
$0
2011
2012
Systems
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*Dollar amounts in millions
2013
Service
2014
2015
Inst & Accy
2016
da Vinci System Installed Base
3,919 Worldwide
Europe
665
USA
2,563
Asia
502
Rest of World: 189
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Investments and 2017 Priorities
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Investments
Quality of
life
Recovery
Enhanced
imaging
Intelligent
systems
Productivity
Less invasive
approaches
Data
analytics
Optimized
learning
MINIMIZING THE DISRUPTION OF SURGERY
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Enhanced Imaging
Helping surgeons and staff overcome the limitations of the human eye
Enhanced imaging
can help surgeons
identify structures
during surgery
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Not yet FDA cleared in the US.
Intelligent Systems
State-of-the-art measures and sensors that provide real-time feedback
One source of variability
and complication is
difficulty identifying
structures – we can help
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Not yet FDA cleared in the US.
Less Invasive Approaches to the Body
da Vinci SP
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Not yet FDA cleared in the US.
Less Invasive Approaches to the Body
Flexible catheter based system: Fosun Pharma JV
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Not yet FDA cleared in the US.
Pulling Investments Forward Into 2017
Accelerating up
Up to
to $80M
$80M in
in spending;
Spend
15-18% growth in 2017 operating expenses.
da Vinci SP® Surgical System platform deployment
Flexible catheter based system development
Enhanced Imaging and intelligent systems
Clinical, economic, and infrastructure investments globally
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2017 Priorities
Accelerate access
Accelerating
access
toto
and
andquality
qualityofof
MIS
MIS
Continued adoption in general surgery
Develop core European markets and Asian access
Advance new platforms – imaging, advanced instruments, da Vinci and early diagnostic
platform milestones
Support additional clinical and economic validation by region
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