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BSC Business/EH&S OverviewBSC Business/EH&S Overview

More than 25 Years Advancingthe Practice of Less-Invasive Medicine

More than 25 Years Advancingthe Practice of Less-Invasive Medicine

2Boston Scientific Corporation ConfidentialBSCCOP 12/05

Boston Scientific Corporation Profile

General Facts:

• Founded in 1979 with 38 employees, $2 million in sales. Now Fortune 500 company

• World’s largest medical device company dedicated to less-invasive therapies

• Portfolio of 15,000 products, many with market leading positions

• The TAXUS®

drug eluting stent has been the most successfully launched product in the history of the industry

• Corporate HQ: Natick, MA

• Regional HQs: Singapore, Paris, Tokyo

• Website: www.bostonscientific.com

Product Innovation:• 9,000+ Patents issued

• $569 Million invested in R&D (’04)

• $1.2 Billion in 22 Investments (’04)

Financials:• $5.6 Billion Revenue (’04)

• 27.5% CAGR* (’01-’04)

• $1.4 Billion Net Income (’04)

• NYSE: BSX

Demographics:• 17,500+ Employees

• Direct marketing & sales in more than 40 countries

• 16 Primary manufacturing locations in U.S., Ireland & Costa Rica

* Compound Annual Growth Rate

Boston Scientific is a global, multi-billion dollar company focused on less-invasive medical devices and proceduresBoston Scientific is a global, multi-billion dollar company focused on less-invasive medical devices and procedures


Boston Scientific products help treat a broad range of medical conditions throughout the bodyBoston Scientific products help treat a broad range of medical conditions throughout the body

VASCULAR SURGERY

ONCOLOGY

ENDOSCOPY

PERIPHERAL VASCULAR

NEUROMODULATION

ELECTROPHYSIOLOGY

GYNECOLOGY

CARDIOVASCULAR

NEUROVASCULAR

UROLOGY


Worldwide, nearly 350,000 patients annually are treated with BSC’s kidney stone-related devices

more than one million Americans are treated for kidney stones each year

Kidney Stones

More than 20,000 women per year are treated with BSC’s urinary incontinence products

affects approximately 13 million adults in the U.S., occurring in women twice as often as men

Incontinence

BSC is a worldwide leader of surgical aortic repair and currently has less-invasive technology in development

more than one million Americans have AAA; a significant portion can be treated with early detection

Abdominal Aortic Aneurysm (AAA)

BSC’s is a leading supplier of products for neurovascular intervention with less-invasive technologies under investigation for treating intra-cranial atherosclerotic and carotid artery disease

is one of the leading causes of death in the U.S. Neurovascular Disease

BSC Endoscopy is a market leader in endoscopicdevices to treat gallstones

more than 500,000 Americans undergo gallbladder surgery each year

PancreaticobiliaryDisease (gallstones)

BSC’s Uterine fibroid embolization is a growing alternative treatment, with >13,000 procedures performed in 2004

develop in 25 percent of all women at some point in their lives, and nearly six million cases are left untreated

Uterine Fibroids

BSC’s cardiac ablation procedures are used in 80 percent of the electrophysiology labs in the U.S.

as many as two million Americans are living with atrialfibrillation, with about 160,000 new cases each year, increasing patient’s chances of stroke by five times

Heart Arrhythmias

BSC is a leader in peripheral vascular treatmentafflicts approximately 3.7 million people in the U.S. and is a common condition in Americans 65 and older

Peripheral Vascular Disease

BSC interventional cardiology products are used in about one million procedures annually

accounts for more than 40 percent of all deaths in U.S.Cardiovascular Disease

BOSTON SCIENTIFIC FACTSPREVALENCEDISEASE

Boston Scientific offers market leading technologies for many of the most prevalent and debilitating diseasesBoston Scientific offers market leading technologies for many of the most prevalent and debilitating diseases


Sampling of Boston Scientific’s Product Portfolio

Over 25 years of Innovation has led to a broad portfolio of more than 15,000 productsOver 25 years of Innovation has led to a broad portfolio of more than 15,000 products

BalloonsDetachable Coils Grafts Enteral Feeding Ablation

EmbolicsCardiac Mapping Stents Stone Retrieval Embolic Protection

Peripheral DilatationBiopsy Systems Ureteral Stents Catheters / Guidewires Neuro-stimulation


Guidant AcquisitionRedefining “Bold”Guidant AcquisitionRedefining “Bold”

� Consistent with BSC Strategy

� Long-term interest in CRM

� DES Alternative

� Diversification and Growth


Boston Scientific is organized into three major groups and eleven distinct businessesBoston Scientific is organized into three major groups and eleven distinct businesses

Interventional Cardiology

PeripheralInterventions

VascularSurgery

Neurovascular Electrophysiology

Cardiovascular

Urology

Gynecology

Endoscopy Oncology

Endosurgery Neuromodulation

AuditoryPain Management

2004 Revenues $5.6 Billion

Neuromodulation’04 Revenue = $46M% Company Total = 1%

Endosurgery’04 Revenue = $1.088B% Company Total = 19%

Cardiovascular’04 Revenue = $4.480B% Company Total = 80%

Groups

Businesses


Boston Scientific has evolved from early pioneer to industry leaderBoston Scientific has evolved from early pioneer to industry leader

2 3 8 13 16 22 31 47 71 99 116 159 230315 380 449

1,191

1,551

1,831

2,234

2,842

2,6642,673

2,919

3,476

5,624

'79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05

Global Leadership in Interventional Medicine

John Abele and Pete Nicholas partner to form Boston Scientific

BSC goes public with IPO on NYSE

BSC acquires eight companies in two years

Begins first clinical trial of DES

TAXUS DES U.S. FDA approval

$6,283Revenue ($000)

Phase IVNext Chapter

Phase II Strategic Mass(Via Acquisitions)

Phase I Less-Invasive MedicinePioneer/Leader

Phase III Stent Integration& DES Leadership


We Achieve Global Leadership in our Key MarketsWe Achieve Global Leadership in our Key Markets

St. Jude

6%Medtronic

7%

Guidant

11%

J&J

31%

BSC

45%

Interventional Cardiology

• 90%+ of sales from market leading products• Represents 73% of BSC total business

Endosurgery(Endoscopy, Oncology, Urology, Gynecology)

• 75% of sales from market leading products• Represents 19% of BSC total business

J&J

5%

AMS

3%Olympus

5%

Cook

10%

Bard

15%

Others

26%

BSC

36%


BSC has made significant internal R&D investments to champion new ideas and products into new marketsBSC has made significant internal R&D investments to champion new ideas and products into new markets

New Product DevelopmentDelivering what’s next.TM

$199

$274

$343

$452

$569

2000 2001 2002 2003 2004

R&D Investment$Millions

2,150

2,535

2,892

3,307

3,617

2000 2001 2002 2003 2004

U.S. Patents Issued

At year-end 2004: 6,000+ applications pending worldwide


The result of our Hybrid Model is a Robust Product Pipeline The result of our Hybrid Model is a Robust Product Pipeline

Product Priorities that will shape our future

Cardiac Rhythm Management (CRM)

Cameron Healthcardioverter defibrillator

Endovascular Aortic Repair (EVAR)

TriVascular AAA Stent Graft 1

Next-GenerationDrug-Eluting Stents

TAXUS® Liberté™ 2

CarotidStent

EndoTex NexStent 1

1. CAUTION: Investigational device. Limited by Federal law to investigational use. 2. Not available for sale in the United States. 3. Humanitarian Use Device.

PainManagement

Precision Spinal Cord Stimulation System

PainManagement

bion Microstimulator 1

Single-Use Endoscope

Endovations Endoscopy Suite

NeurovascularStent

Wingspan™ Stent System with Gateway PTA Balloon Catheter3


What Defines the BSC EH&S ProgramWhat Defines the BSC EH&S Program

�Focus and clarity

�Measuring our contribution; we put points on the board

�Ruthless prioritization; we drive what matters

�Compliance as a given; integrity in our actions

�Developing integrated business-driven solutions


Highly Valued AspectsHighly Valued Aspects

�Environmental Management Systems

�Injury Incidence and Severity Rates

�GHG Emissions/Energy Efficiency

�Risk

�Compliance


TRIRTRIR

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Global Ergonomics Initiative( a.k.a. ergo-lean)Global Ergonomics Initiative( a.k.a. ergo-lean)

�Premise: Wasted Motion/Posture, Frequency and Force = Ergonomic Risk and Inefficiencies

�Approach: Provide Fast and Quantitative “Same as Same” Tools Across Sites

�Integrating into Lean Manufacturing


Results SummaryResults Summary

�Risk Reductions Ranging Between 25-80%

�New York Forecasting $670 K Income Increase Using FORM (3X) Based Upon Measured Cycle Time

�Costa Rica Forecasting $5.1 MM Income Increase using FORM (8X) Based Upon Measured Output

�Tullamore Projecting 27% Cycle Time Improvement with 8 FTE’s Freed, 20% Reduction in Floor Space

�We Put Points on the Board


Why ISO-14001 CertificationWhy ISO-14001 Certification

�Our Most Effective Response to Environmental Tender Requests; Currently at 70+% VOP

�Focused “Aspects Analysis” Will Drive the Correct Environmental Elements

�Supports BSC Environmental Program and External Perception


Expanding Environmental programExpanding Environmental program

�Desire to Have BSC Recognized as an Environmental Leader

�Are Examining all BSC Environmental Aspects

�Premise is Based on “Triple Win” Elements


Choosing our Business PartnersChoosing our Business Partners

�BSC is a performance based company, “Delivering what’s next”

�Partners need to be performance, not process, based

�We expect the best people

�We look for team culture, with the ability to listen, and the courage to lead

�We expect fair pricing

�We watch accountability

Thank YouThank You

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