Investor Meeting and Mid Year Review

May 7, 2012

Webcast will begin at Noon Eastern Time

Tim Guertin – President and CEO

Elisha Finney – Exec. VP, CFO

Kolleen Kennedy – Sr. VP, President Oncology Systems

Bob Kluge – Sr VP, President X-Ray Products

Lester Boeh – VP, Emerging Businesses

Dow Wilson – Exec. VP, COO

Forward-Looking Statements

Except for historical information, this report on Varian Medical Systems’ financial performance contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning industry outlook, including growth drivers; the company’s orders, revenues, backlog, or earnings growth; future financial results; market acceptance of or transition to new products or technology such as RapidArc therapy, image-guided radiation therapy (IGRT), stereotactic radiosurgery, filmless X-rays, proton therapy, and security and inspection, and any statements using the terms “estimate,” “believe,” “expect,” “can,” “grow,” “could,” “should,” “continue,” “sets the stage” or similar statements are forward-looking statements that involve risks and uncertainties that could cause the company’s actual results to differ materially from those anticipated. Such risks and uncertainties include demand for the company’s products; the company’s ability to develop and commercialize new products; the company’s ability to meet demand for manufacturing capacity; the company’s ability to complete the planned sale of instruments portion of the company’s ACCEL proton therapy business; the company’s reliance on sole or limited-source suppliers; the impact of reduced or limited demand by sole purchasers of certain X-ray tubes; the company’s ability to maintain or increase operating margins; the impact of competitive products and pricing; the effect of economic conditions, currency exchange rates, and tax rates; the effect of changes in accounting principles; the company’s ability to meet Food and Drug Administration and other regulatory requirements for product clearances or to comply with Food and Drug Administration and other regulatory regulations or procedures; the ability to make strategic acquisitions and to successfully integrate the acquired operations into the company’s business; the possibility that material product liability claims could harm future revenues or require the company to pay uninsured claims; the effect of environmental claims and expenses; the company’s ability to protect the company’s intellectual property; the impact of managed care initiatives, other health care reforms, and/or third-party reimbursement levels and credit availability for capital expenditures for cancer care; the potential loss of key distributors or key personnel; consolidation in the X-ray tubes market; the risk of operations interruptions due to terrorism, disease or other events beyond the company’s control; and the other risks listed from time to time in the company’s filings with the Securities and Exchange Commission, which by this reference are incorporated herein. The company assumes no obligation to update or revise the forward-looking statements in this report because of new information, future events, or otherwise.

Six Years of Earnings Growth

Varian’s Order Growth Opportunity

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2012 2013 2014 2015 2016

SIP VPT XRP OS

Financials

Elisha Finney, Exec. VP, CFO

Net Orders and Revenues (FY12 YTD ended 03/30/12)

110011501200125013001350140014501500

Q211 YTD Q212 YTDOrders Revenues

Q2 FY12 YTD

Operating Margin and Net Earnings (FY12 YTD ended 03/30/12)

050

100150200250300350

Q211 YTD Q212 YTD

Op Earnings Net Earnings

Q2 FY12 YTD

Backlog $2,653M (As of 03/30/12)

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FY 2009 FY 2010 FY 2011 FY 2012

Q1Q2Q3Q4

Q2 FY12 Balance Sheet / Cash Flow

Conservative balance sheet $617M cash and cash equivalents $32M short-term investment $162M total debt $1,436M stockholders’ equity

*DSO 83 days - up 4 days from year ago quarter - down 3 days from prior quarter Cash Flow $105M cash flow from operations $22M proceeds from employee stock option exercises $75M used to repurchase 1.1M shares in Q212 $26M net of new debt borrowing and pay down

*Days Sales Outstanding

Questions of the Day

Margins

Margins

Margins

Margins

Margins

Margins

Where are they headed?

Why didn’t you see slip coming?

How does Siemens affect margins?

Is 50bpts ROS leverage still possible?

What is the impact of proton business?

Fiscal 2012 Outlook (As of end of Second Quarter, Fiscal 2012)

Revenues growth estimated at ~ 10% for FY 2012

EPS growth estimated at ~ 9% to 12%, or $3.76 to $3.84 for FY 2012

Tax Rate estimated at ~ 28% for Q3 FY12 and FY 2012

Revenues growth estimated at ~ 9% to 10% for Q3 FY 2012

EPS growth estimated at ~ 10% to 14%, or $0.91 to $0.95 for Q3 FY 2012

Varian updates its outlook once per quarter when it reports financial results. The outlook is for Continuing Operations.

Oncology Systems

Kolleen Kennedy, President Oncology Systems May 7, 2012

15 | VARIAN ONCOLOGY SYSTEMS

VARIAN ONCOLOGY SYSTEMS

ONCOLOGY SYSTEMS

MAY 7, 2012

16 | VARIAN ONCOLOGY SYSTEMS

17 | VARIAN ONCOLOGY SYSTEMS

Varian Oncology Hallmarks

• Market leadership • Financial strength • Product innovation • Integrated solutions • Affordable care • Customer Services organization • Quality & Performance

18 | VARIAN ONCOLOGY SYSTEMS

Mid-year Financials

Q2 FY12 1H FY12

Net Orders 565 9% 1,050 7%

Revenues 565 11% 1,053 10%

Gross Margin 42% -3 pts 44% -3 pts

R&D 30 59

SG&A 75 149

Op Earnings 126 -3% 237 -5%

ROS 22% -3 pts 23% -3 pts

Headcount 4,307 Note: Dollars in millions.

19 | VARIAN ONCOLOGY SYSTEMS

• Strong Q2 top line growth after slow Q1 start

• International mix continues at 55% - 57%

• Services performance mid-teens growth %

• First TrueBeam orders in Japan! Clinical go-live in Korea and Thailand

• Siemens strategic alliance announcement

• ARIA ARRA HITECH customer satisfaction phase launch

1H FY12 Highlights

20 | VARIAN ONCOLOGY SYSTEMS

TrueBeam Update

• ~490 Orders -- ~ 230 Installations

• First TrueBeam orders in Japan. Go-live systems in Korea and Thailand

• Installed base of ~5600 high-energy linac machines • Average age: 50% 7 years or older • Replacement cycle: 12-15 years • Approximately 70% of NA high energy machine orders • To replace 40% of installed base: 2240 machines. • Only 22% of the way there!

21 | VARIAN ONCOLOGY SYSTEMS

Siemens Partnership Broad strategic partnership in RadioTherapy and Diagnostic Imaging Annual revenue potential is significant Varian and Siemens market and represent each other’s products worldwide Maintain control of our channel through specific agency assignments Siemens improves coverage in emerging markets and multi-modality sales Collaboration for joint product development for image-guided RT and RS Immediate RadioTherapy benefits Software connectivity between Aria and Siemens linacs Opens a market segment that had been exclusive to Elekta Customers with Siemens accelerators now have more options Improves workflow and streamlines operations Facilitates smooth customer transition to Varian systems

Siemens is our optimal imaging partner Expands our imaging partnership to encompass the global market Attractive incentives to place CT, PET/CT and MRI in RT clinics

22 | VARIAN ONCOLOGY SYSTEMS

Siemens strategic alliance Broad global partnership in Radiotherapy and Diagnostic Imaging Annual revenue potential: $100-200M Varian and Siemens represent each other’s products worldwide, non-compete Collaboration for future product development Varian immediate benefits Software connectivity to Siemens linacs Opens an entire market segment that had been exclusive to Elekta Siemens strength in emerging markets and bundled multi-modality sales Siemens will facilitate customer transition to Varian systems Priorities for partnership Aria connectivity interfaces and mARC integration in Eclipse Marketing and commercial roll-out DI portfolio innovation and future joint projects (R&D) Component sales and finance

23 | VARIAN ONCOLOGY SYSTEMS

Oncology market mega trends

• Cost effective, clinically relevant disease site specific tools/approaches • Government focus - healthcare supplemental spending

Emerging Markets growth

• More practices adopting SABR/SRS techniques • Convenience attractive to patients • Comparable outcomes clinical trials underway

Hypofractionation adoption continues

• Stricter local interpretations of rules/guidelines • Multiple device clearances burden • Patient health information security & integrity

Increasing Regulatory oversight worldwide

• Smart Systems with Self-monitoring & Status Notification • Growing Internet Access, Users Comfortable with SW Systems

Services

24 | VARIAN ONCOLOGY SYSTEMS

Oncology market mega trends

• Consolidation RO/MO/SO merged together to provide a comprehensive cancer treatment solution

• Focused mandate to clinical efficiencies in healthcare

Global Cost Reduction efforts

• Internet driving education of patients/social networking • On-line health communities • Telemedicine becoming widely adopted • Mobile Applications required for healthcare providers and patient access

(leveraging smartphones, iPad, etc)

Accessibility to Information

• Lack of training/education in many geographies with developing cancer programs

• Desire for global sharing of healthcare expertise; telemedicine applications • Creative solution partnerships: Government, healthcare providers,

professional societies, and industry

Education/Knowledge gaps

25 | VARIAN ONCOLOGY SYSTEMS

Radiation Therapy Today

Source: IAEA and World Health Organization

Radiotherapy Machines per Million People

Over 64 Years

* Machines include Linac and Cobalt Units

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723 873 985 1,091 1,205 1,468 1,599

1,883 1,650 1,761 1,803 367

402 508

615 754

826 919

1,080

1,133 1,225 1,289

213 213

272

323

375

419

476

690 701

919 1,036

46 20

19

34

40

55

74

86 94

87

112

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500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

$Mill

ion

s

North America EMEA APAC LASA

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AAGR by Region

‘01 – ’06

‘06 – ’11

‘01 – ’11

Worldwide 15% 9% 12%

North America 15% 5% 10%

EMEIA 18% 9% 14%

APAC 15% 21% 18%

LASA 14% 16% 15%

Total Market (in $Millions) 1,348 1,508 1,784 2,062 2,374 2,768 3,068 3,739 3,578 3,992 4,240

Growth from outside NA

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BRIC Orders driving Growth

-

50,000

100,000

150,000

200,000

250,000

2007 2008 2009 2010 2011

Russia Systems

Russia Service

India Systems

India Service

China Systems

China Service

Brazil Systems

Brazil Service

Systems CAGR% 40% Service CAGR% 29%

28 | VARIAN ONCOLOGY SYSTEMS

Brazil Today Opportunity

Sao Paulo offices 60 employees

Sales, Service, Finance, Regulatory IB Leader

Varian facility • Hub for LASA operations • Manufacturing: assembly and final testing • Education Center with vault & live beam accelerator • Software Development & Localization • Science without Borders internships

Expand government relations Luminary customer relationships

Government partnership focus • Ministry of Health • Brazilian Industrial Development Agency • Ministry of Science, Technology & Strategic Products

Luminary Clinical Collaborations • INCA – National Cancer Institute • Hospital Albert Einstein • Hospital Sirio Libanese

29 | VARIAN ONCOLOGY SYSTEMS

Russia Today Opportunity

Moscow office Sales, Service

Varian expansion • Partner with local manufacturing entities • Davidoff Education Center • Software Development & Localization • Logistics network investment • Leverage Siemens sales channel

Expanding government focus Strong customer relationships

Strengthen government partnership focus • Ministry of Health • Skolkovo • Ministry of Modernization & Nuclear Cluster • Radiation Technology Program

Invest Education & Marketing programs • Russia Oncology Summit • Broker clinical affiliate relationships

30 | VARIAN ONCOLOGY SYSTEMS

India Today Opportunity

Mumbai, Delhi, Chennai & Pune offices

New Managing Director Sales, Service, Finance,

Regulatory, Logistics, Engineering

Mumbai Education Center

Operations expansion • Grow Sales, Service, Engineering teams • Expand facilities footprint • Focused marketing investments • India Oncology summit • Extend education center programs • Leverage strong Siemens infrastructure

31 | VARIAN ONCOLOGY SYSTEMS

China

Today Opportunity

Beijing HQ: Factory,

Education Center Offices Shanghai, Guangzhou,

Chengdu Sales, Service, Finance,

Regulatory, Logistics

Operations expansion • Grow Sales, Service teams • Expand facilities footprint • Establish software development & localization team

• Focused marketing investments • China Oncology summit • Extend education center programs • Leverage strong Siemens infrastructure

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Disease Site Solutions

• Lung

• Prostate

• Liver

• Breast

• Head & Neck

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IGRT in Treatment of Prostate Cancer

Study at Memorial Sloan-Kettering Cancer Center showed image-guided IMRT superior to IMRT without image guidance. Zelefsky et al. Improved Clinical Outcomes with High Dose Image Guided Radiotherapy Compared with Non-IGRT for the Treatment of Clinically Localized Prostate Cancer. Int. J. Radiat. Oncol. Biol. Phys. 2011 “In press,” doi:10.1016/j.ijrobp.2011.11.047.

34 | VARIAN ONCOLOGY SYSTEMS

RapidArc Radiosurgery for Brain Metastases

Clark GM et al. Plan quality and treatment planning technique for single isocenter cranial radiosurgery with volumetric modulated arc therapy. Practical Radiation Oncology (2012). “In press.” doi:10.1016/j.prro.2011.12.003.

• Doctors at UAB treated up to four metastases simultaneously

• Used RapidArc Radiosurgery • Treatments completed within 15

minutes

35 | VARIAN ONCOLOGY SYSTEMS

RapidArc Radiosurgery for Spine Tumors

• Using TrueBeam in High Intensity Mode: CNS tumors treated within a standard RT timeslot

• Average patient time in room: less than 11 minutes

Prendergast BM et al. Improved clinical efficiency in CNS stereotactic radiosurgery using a flattening filter free linear accelerator. Jour. of Radiosurgery and SBRT, 2011 Nov-Dec; 1(2): 117–122

36 | VARIAN ONCOLOGY SYSTEMS

Services $1B trajectory

$398 $436 $477 $522

$197 $213 $230 $248 $114

$131 $151

$173 $57

$709 $779 $857

$944

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$200

$400

$600

$800

$1,000

$1,200

FY12 FY13 FY14 FY15

Rev

enue

(In

M$)

Gap APAC EMEA Americas

Fully implement service sales organization

Support service sales & value proposition with marketing programs & products

Incubate new professional services & grow existing ones

Drive emerging market installed base growth using education & training

37 | VARIAN ONCOLOGY SYSTEMS

Varian Oncology Hallmarks

• Market leadership • Financial strength • Product innovation • Integrated solutions • Affordable care • Customer Services organization • Quality & Performance

38 | VARIAN ONCOLOGY SYSTEMS

Strategic initiatives

• Expanding in emerging markets

• Building services portfolio

• Developing disease site solutions that address the global cancer care need

• Extending the reach and effectiveness of radiotherapy/radiosurgery with innovation

• Leveraging the power of our Siemens alliance

X-Ray Products

Robert Kluge, President X-Ray Products May 7, 2012

Tube and Panel Sales Growth by Year m

illio

ns

40

1st Half FY12 = $236M 1st Half FY11 = $229M

XRP First Half FY12 Highlights

Slow Start to the Year … Weak Q1 in Japan Strong Q2 Margin Performance

Cost Reduction Activity Quality Cost Improvement dpiX Fab (Cost Benefit)

InfiMed Workstation Acquisition Complete

Panel / Workstation Packages Introduced to the Market

Big New Product Push Introductions in Second Half

41

EBIT +15%

InfiMed Strengthens Varian Offerings

Enables Varian X-Ray to: Leverage panel value with software

Offer workstation packages for retrofits

Accelerate OEM time to market with integrated panel and software

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New Flat Panel Detectors

DR Radiography High Resolution Fast Workflow - No Retakes

Portable Wireless Panel

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Large field of view Cardiology, Angiography Cone Beam CT High resolution

PaxScan® 4343CB Flat Panel Detector

Large Dynamic Panel Opportunity

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FP 1000 X-Ray Tube Beam Optimized for Panels

Greater Clarity - Less Fog in Picture

Lighter Weight

New Digital X-Ray Tubes Optimized for Flat Panel Detectors

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New Mammography Solutions Transition to Digital Imaging

PaxScan Flat Panel Detector

PaxPower Mammography X-Ray Tube

Varian well positioned Right Technology

Right Cost

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Aftermarket X-Ray Tube

New Rotating Anode X-Ray Tubes

Replaces GE Tube Gives users new choice

New High Tier CT Tube Excellent Resolution Motion-stopping speed Sets new performance standard

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Maintain Technology Leadership X-ray Tubes Optimized for Flat Panel Environment High Performance CT Tubes High End Fluoroscopy / Cone Beam Panels Tiered RAD Panel Strategy

Provide Best Value Equation to Customer Competitive Cost Structure Customer Cooperative Engineering Strategy Tube/Panel/Workstation Package Offerings

Effective Worldwide Distribution Strong Customer Relationships Support Capability in Major Markets

XRP Key Strategies

48

Security and Inspection Products

Lester Boeh, Vice President

Varian Security and Inspection Products

Market leading provider of high-energy imaging components Products: Linear accelerators, detectors, software, systems, service

Cargo/Border Screening (85% of SIP business)

Non-destructive Testing (NDT) (15% of SIP business)

Customers include all major systems integrators

End-users include customs, defense agencies and manufacturers

~$85M annual business

High-Energy x-Ray Sources High-Energy Detectors

Security market shifting to broad scale deployment in international locations Saudi Arabia, Russia, Mexico, Brazil

Bulk orders creating lumpiness in financials

Sets stage for service growth and cost reduction

Domestic cargo/border screening activity Slow, small deployments

Antiquated procurement process

5 IntellX sites operating or going on-line

New procurement models developing Pay-per-use vs. capital purchase

IntellX

Varian Security and Inspection Products

Challenge: Security at the Speed of Business

US/Mexico Border Saudi/UAE Border

Central Asia Critical Infrastructure

Reduce System Cost/Increase Capability

Varian High-Resolution Radiograph

Reduce System Cost/Increase Capability

Varian Materials Discrimination Technology

Varian Auto-Threat Resolution

Reduce System Cost/Increase Capability

High confidence threat resolution in under a minute

High-Speed Car Scanner

>100 vehicles per hour Dual view operation reveals all

Infrastructure Protection

Varian SIP: Keys to Success

Very fast auto-threat resolution with materials discrimination

New procurement models enabling faster adoption and deployment

Result: Security at the Speed of Business

Particle Therapy

1st Half Highlights

Orders/Sales: Saudi Arabia order booked ($72.6M)

St. Petersburg, Russia order booked ($50.25M)

Scripps PTC installation on schedule

Munich Clinical Site >1,000 patients treated

1st IMPT – capable system in the world

15 minute treatment times routine

Cyclotron uptime sustained >98%

First External Beam April 18th $17.5M payment milestone triggered

Installation to beam out

Scripps – Beam On

Scripps Installation Status

• RPTC Munich • Four rooms

operational

• APT/SPTC San Diego

• Delivery ‘11, 1st patient ‘13

• King Fahd, Saudi Arabia

• Delivery ‘13, 1st patient ‘14

Active Proton Projects

• St Petersburg, Russia

• Delivery ‘14, 1st patient ‘15

Pending Proton Projects

• APT/Emory Atlanta

• Delivery ‘14

• APT/MPTC Maryland

• Delivery ‘13, 1st patient ‘15

• Mestre, Italy • Delivery ‘14,

1st patient ‘15

Pending Proton Projects • APT/UTSW

Dallas • Delivery ‘15

Path To Profitability

2012 2013 2014 2015 2016 2017

Scripps Installation Operations & Service

King Fahd Installation Operations & Service

2018

PT Business Break-Even Target

Project 5 Installation Operations & Service

Project 6 Installation Operations & Service

2019

RPTC Munich Operations & Service

Project 7 Installation Operations & Service

Project 8 Installation Operations & Service

Project 9 Installation Op. & Service

St. Petersburg Installation Operations & Service

Market Conditions Market Share – Behind But Catching Up

* Based on corporate press releases, March 2011 – 2012

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Varian Hitachi IBA Mevion Protom

Ord

ers

Book

ed (M

$)

Orders booked over last 12 months

Booking of 70 MUSD order Knoxville not confirmed

Why Protons? Sparing critical structures/Reduction of Unwanted Dose

Pediatric Cancers

Ocular melanoma

Head & Neck

Central nervous system

Sarcomas

Lung

Liver

Breast

Why Varian is in Protons

Significant number of Varian customers want PT and PT research

Convergence of technologies

~$10B total market

Summary

Dow Wilson, Exec. VP, Chief Operating Officer

Keys to Growth

Globalization

Innovation

Affordable Care

Quality

Unsurpassed Customer Service

Varian Services Growth

• Oncology primary contributor • Proton Services Business begins in 2014 • XRP not factored into roll-up

$725 $813 $920 $1,040

$1,171

$- $200 $400 $600 $800

$1,000 $1,200 $1,400

FY12 FY13 FY14 FY15 FY16

Rev

enue

in $

M

Combined Service revenues (Oncology + Proton + SIP)

Varian Medical Systems (NYSE:VAR)

Investment Summary Market and technology leader Multiple global growth platforms Radiotherapy/Radiosurgery Filmless X-ray imaging Proton Therapy Port and border protection

>$700M annual service business Management focus on execution, innovation Strong balance sheet, significant cash flow, stock buybacks

Questions and Answers