Investor PresentationQ3 2015

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.

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.

Contents Outline

• Company Overview & Business

Model

• Business Review

• Opportunities & Catalysts for

Growth

• Corporate Assets & 2015

Priorities

Corporate Overview and

Business Model

Corporate Overview• Founded in 1995, IPO 2000

• Approximately 570,000 da Vinci® procedures performed in 2014, up 9% from 2013

– First half 2015 procedures up approximately 13%

• 2014 Revenue - $2.13B, down 6% from 2013

– Capital -24%, Recurring +5%

– First half 2015 Non-GAAP Revenue* up 12%

• 3,398 da Vinci® System installed base as of 6/30/15

– 2,295 United States, 573 Europe, 530 Rest of World

• Numerous FDA and International Regulatory Clearances

• Primary Markets - Urology, Gynecology, General Surgery, Cardiothoracic

.*Non-GAAP Revenue of H114 included $19.9 million of net revenue associated with da Vinci Xi trade-

out offers. Non-GAAP Revenue for H115 was equal to GAAP revenue.

Annual Service Agreement

$100K - $170K/Year

2014 Rev = $429M

da Vinci® Surgical System

$0.6M - $2.5M

2014 Rev = $633M

Instruments & Accessories

$700-$3,200 per procedure

2014 Rev $1,070M

Recurring Revenue Model

Annual Service Rev Per System

da Vinci® Surgical System ASP

Inst & Accy Rev Per Procedure

2014 Range of Pricing to Meet Multiple

Segments

$0.6M

$170K $100K

$3,200$700

$2.5M

da Vinci Si-e

Single-Site™

Dual Console Xi

Firefly™

Endowrist®

Vessel Sealer

Stapler

Typically Benign Typically Cancer

2014: $1.5M

2014: $1,880

2014: $140K Dual Console Xida Vinci Si-e

Includes company estimates and approximate ranges

Business Review

• Areas of Strength

– Procedure growth – U.S. general surgery, U.S. dVP macro

trends, and international

– Expanding da Vinci Xi market and platform

• Japan Clearance End of Q1 15

• Phase 2 instruments shipping Q2 15

• Xi Table motion CE marked and FDA submission in Q2 15

• Xi Single-Site FDA submission H2 15

– Stapler

• U.S.: Resumed shipping Si version and launched Xi version

• Europe: Obtained CE Mark status for Si and Xi versions

• Challenges

– Gross margin pressure – Fx headwinds; new product

costs

First Half 2015 Commentary

Annual Worldwide Procedures

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2009 2010 2011 2012 2013 2014 2015

Urology Gynecology General Surgery Other

Company Estimates

2015 Guidance:

11-13% Growth

2014:

9% Growth

Company estimates

U.S. Urology Procedures

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2006 2007 2008 2009 2010 2011 2012* 2013 2014

Prostate Kidney Other

Company estimates

* U.S. Preventive Services Task Force Recommends Against PSA testing 5/2012

0

50,000

100,000

150,000

200,000

250,000

2009 2010 2011 2012 2013 2014

Benign Hysterectomy Malignant Hysterectomy Other

U.S. Gynecology Procedures

Company estimates

U.S. General Surgery Procedures

0

20,000

40,000

60,000

80,000

100,000

120,000

2009 2010 2011 2012 2013 2014

Upper GI / HPB Lower GI / Colorectal Other

Company estimates

�Approximately 121,000 procedures performed in 2014, up 20% from 2013; H1 2015 up 25%

�Strength in Asia procedures

�Strength in EU systems and procedures

�Significant investments supporting long term growth

�Japan: Buildout of direct sales structure, efforts to obtain additional reimbursements

�Europe: Clinical data and analysis, sales coverage

International Performance

OUS Annual Procedures

Company Estimates

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2009 2010 2011 2012 2013 2014

Europe Asia Rest of World

Company estimates

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

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

System Placement Trend

0

20

40

60

80

100

120

140

160

Q1 Q2 Q3 Q4 Q1 Q2

2014 2015

U.S. Europe Japan Rest-of-World

System Mix Trend

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q114 Q214 Q314 Q414 Q115 Q215

U.S. System Mix

S / Sie Si Xi

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q114 Q214 Q314 Q414 Q115 Q215

Worldwide System Mix

S / Sie Si Xi

Europe

573

Europe

573

Europe

573

USA

2,295

USA

2,295

USA

2,295

Australia/New

Zealand 36

Japan 206South Korea 52

China 46India 31

Taiwan 26Singapore 7

Thailand 6Other 9

Installs by Country and Region

Saudi Arabia 14Israel 7Qatar 6Other 9

Middle

East

36

Brazil 16Mexico 7

Argentina 6Chile 5

Other 12

Latin

America

46

Denmark 17Norway 11

Czech Republic 7Austria 6Finland 5Ireland 3Other 3

DistributionItaly 83

Turkey 33Spain 31

Russia 25Greece 9

Romania 7Other 11

DirectFrance 88

Germany 76UK 52

Belgium 33Switzerland 28

Sweden 25 Netherlands 20

Asia

383

Asia

383

Asia

383

Canada 25

Intuitive sells directly to customers in the US, Korea, Japan, and the European countries indicated

above. Sales are through distributor partners in all other areas of the world including, Canada, Latin

America, the Middle East, Asia and Australia.

South Africa 4

da Vinci® System Installed Base

Trended da Vinci® System Installed

Base

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q210 Q211 Q212 Q213 Q214 Q215

United States

International

Opportunities and Catalysts for

Growth

Open Surgery Remains Common – U.S.

Source: ISI data as well as estimates

Yr: 2004

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Prostate Malignant

Hyst

Benign Hyst

Robotic Other MIS Open

Open Surgery Remains Common – U.S.

Source: ISI Data as well as Estimates

Yr: 2014

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Prostate Malignant

Hyst

Benign Hyst

Robotic Other MIS Open

Open Surgery Remains Common – U.S.

Source: ISI data as well as estimates

Yr: 2014

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Prostate Malignant

Hyst

Benign Hyst Colorectal Ventral

Hernia

Thoracic

Robotic Other MIS Open

Open Surgery Remains Common – OUS

Source: ISI data as well as estimates. OUS defined as Western Europe, Canada, Australia, South Korea and Japan

Yr: 2014

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Prostate Malignant

Hyst

Colorectal Gastrectomy Thoracic

Other MIS Robotic Open

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

Clinical and Economic Validation –

Overview of the Database

• To date, there are approximately 9,500 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

Which is the right

comparison?

Populations Matter(e.g., Rectal Resection)

Laparoscopy

Open Surgery

da Vinci LAR

Ma

rke

t S

ha

re %

MIS Surgeon Perspective

dV vs Lap}

Patient Perspective

Open vs MIS}

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

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, dual-

console, setup assist)

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 launched Q1 15

– Clearance in Japan end of Q1 15

– Xi Table motion CE Marked and

FDA submitted in Q2 15

– Xi Single-Site submission expected

H2 15

• Single-Site wristed needle driver

for Si launched Q4 14

Integration of da Vinci Sp

Current Xi Configuration

• Deliver technical milestones in 2015

• Initiate customer evaluations

Integration of da Vinci Sp

Xi with Sp Patient Cart and Instruments

• Deliver technical milestones in 2015

• Initiate customer evaluations

2015 Priorities and

Corporate Assets

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

� Extraordinary people

� 3,398 da Vinci® System installed base 6/30/15

� Numerous FDA and international regulatory clearances

� Extensive instrument and accessory product line

� Intuitive Surgical training centers worldwide

� Ownership of or exclusive rights to over 1,850 U.S. and

foreign patents and more than 1,530 US and foreign

patent applications

� da Vinci® patient awareness

Corporate Assets