Investor Presentation May 2006

Transcription

1 Investor Presentation

2 Forward Looking Statement These slides accompany an oral presentation by Intuitive Surgical, Inc., which contains 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 Corporate Overview Founded in 1995, IPO Years of da Vinci System Sales 2005 Revenue $227M, up 64% from 2004 Q1/06 Revenue $77.3M, up 86% from Q1/ da Vinci System base as of 03/31/06 FDA Clearances Laparoscopic, Thoracoscopic, Prostatectomy, Cardiotomy, Revascularization, Urology, Gynecology,Pediatric

4 Recurring Revenue Model Instruments & Accessories $1500-$2000 per Procedure da Vinci Surgical System $1.0-$1.5 Million Service Agreement $100K-$140K per Year

5 da Vinci System Base ROW 350 Europe 300 N America Q102 Q302 Q103 Q303 Q104 Q304 Q105 Q305 Q106

6 da Vinci S Surgical System Fast Fool-Proof Setup Motorized Patient Cart High-speed fiber optic connection Quick-click cannula attachment Multi-Quadrant Access Extended reach instruments Large range of motion Interactive Video Displays TilePro multi-image stereo viewer Integrated Patient Cart touchscreen

7 da Vinci Procedures Urology Cardiac OB/GYN General Radical Prostatectomy Pyeloplasty Uretetro Transplant Donor Nephrectomy Nephrectomy Ureterolithotomy Adrenalectomy Cystocele Repair Excision of Renal Cyst Lymphadenectomy Testicular Resection Renal Cyst Decortication Sacral Colpopexy Nephropexy Pelvic Lymphadenectomy Ureterectomy Rectocele Repair Varicocele Ureteroplasty Ureteral Implantation Vaso-vasostomy Single Vessel Beating Heart Bypass Multi-Vessel Beating Heart Bypass Single Vessel Arrested Heart Bypass Multi-Vessel Arrested Heart Bypass IMA Harvesting Bilateral IMA Harvesting Coronary Anastomosis Atrial Septum Aneurysm Subrenal Aorta Aneurysm Atrial Septal Defect Repair Mitral Valve Repair & Replacement Tricuspid Valve Repair Thrombectomy Percardial Window Lobectomy Pneumonectomy Abdominal Aortic Aneurysm Aortic Femoral Bypass Pacemaker Lead Implantation Mediastinal Resection Pulmonary Wedge Resection Hysterectomy Myomectomy Colposuspension (Burch) Dermoid Cyst Endometrial Ablation LAVH Oophorocystectomy Oophoroectomy Ovarian Cystectomy Ovarian Transposition Removal of Fibroids Salpingectomy Salpingo-Oophorectomy Tubal Ligation Tubal Reanastomosis Tubalplasty Vaginal Prolapse Repair Nissen Fundoplication Cholecystectomy Hernia Repair Lysis of Adhesions Arteriovenous Fistula Toupet Esophageal Achalasia Esophago-gastectomy Adrenalectomy Gastric Bypass Colon Resection Pyloroplasty Heller Myotomy Gastroplasty Appendectomy Intra-rectal Surgery Sigmoidectomy Bowel Resection Lumbar Sympathectomy Ventral Hernia Splenectomy Hemi-Colectomy The preceding is a representative list of procedures Intuitive Surgical customers have reportedly performed using the da Vinci Surgical System. It includes procedures not covered by Intuitive Surgical s U.S FDA clearances. This list is intended to illustrate reported use only and should not be interpreted as Promotion of off-label use of the da Vinci System

8 Target Procedures dvp da Vinci Prostatectomy da Vinci Mitral Valve Repair da Vinci Revascularization da Vinci Hysterectomy da Vinci Gastric Bypass

9 dvp Year-end Run Rate US Market Share* 35% 30% 25% 20% 15% 10% 5% 0% Goal * Based upon 90,000 estimated total annual prostatectomies performed in the U.S.

10 Proven dvp Clinical Benefits Comparison of Open Prostatectomy and Robotic dvp Variable Test Open Cancer Removal Neg Margins 76% Continence (6 Months) No Pads 60% Potency (6 Months) Intercourse 33% Safety No Complications 85% Pain Score (1-10) 7 Blood Loss No Transfusion 89% SCORE 600 = 100% % dvp 94% 96% 66% 98% 3 100% % Best Reported 98% 80% 56% 94% 7 98% % Source: Menon, Urology : 15-20

11 dvp Economic Impact 800 Prostatectomies Robotic Open The opportunity for increased revenue, market share, and surgical volume is very substantial. We have had a very positive return on investment. Nancy M. Schlichting President and CEO Henry Ford Health System Detroit, Michigan

12 dvp Market Potential 2005 New US Cases of Prostate Cancer: 235,000 WW/Other 55,000 55,000 Prostatectomy 90,000 Prostatectomy 90,000 Radiation Radiation 90,000 90,000 US Market (120,000 dvp s) Inst & Acc. $210M Service $100M Systems $143M $453M

13 Incisions Following Mitral Valve Repair Median Sternotomy cm. Sternum divided Smaller and Smaller Thoracotomy 6 cm. Ribs separated da Vinci Mitral Valve Repair cm. Between ribs Data from Doug Murphy, MD, St.Joseph s Hospital Atlanta GA

14 Mitral Valve Patient Value Total Mitral Valve Surgeries Repair Replace Doug Murphy, M.D. Chief of Cardiovascular Surgery St. Joseph s Hospital - Atlanta

15 Hysterectomy Potential 2005 Total US Hysterectomies: 600,000 Cancer 50,000 Cancer 50,000 Cancer 160,000 Complex Complex Other Benign 250,000 Complex 350, ,000 Other Benign 200, ,000 Other 350,000

16 da Vinci Surgical System Installed Base 2003 and Prior

17 da Vinci Surgical System Installed Base 2003 and Prior 2004

18 Alaska da Vinci Surgical System Installed Base 2003 and Prior

19 da Vinci Surgical System Installed Base Alaska 2003 and Prior

20 Robotic Surgery Market Potential US Centers 1,000 ROW Centers 500 Total Centers 1,500 X Systems / Center 3 Total Installed Base 4,500 X Recurring Revenue/System $538K Total Annual Recurring Revenue Market - $2.4 Billion

21 Value Proposition Benefits to the Surgeon Perform currently open procedures MIS Reduce Operative Time / Ergonomics Grow Surgical Practice Benefits to the Patient Improve results and recovery time Benefits to the Hospital Drive Incremental Patients Reduce costs: complications and LOS Create additional capacity

22 Revenue Trend $350 $300 $250 $200 $150 $100 $50 $ Consensus Q1 Actual 77 Million

23 Revenue Trend $350 $300 $250 $200 $150 $100 $50 $0 Recurring Systems 15% 22% 33% 45% Consensus 43% 47%

24 Income Statement Trend Pro Forma Q106* Sales $72.0 $91.7 $138.8 $227.3 $77.3 Gross Profit % 47.1% 48.0% 63.4% 67.6% 67.9% SG&A Expense R&D Expense Operating Income (20.2) (11.9) Operating Margin % -28.1% -13.0% 15.3% 30.3% 34.7% EBITDA ($15.7) ($1.3) $28.3 $75.5 $29.0 * Excluding FAS 123R impact

25 2006 Forecast Revenue Growth Overall 45-50% Instrument/Accessory 55-60% Service/Training 40-45% System 40-45% Gross Profit Percentage* 68-70% Operating Expense Growth* 35-40% Income Tax Rate 38-42% FAS 123R pre-tax impact $21-$25 Million * Excluding FAS 123R impact

26 Corporate Assets $221M Cash Exclusive rights to over 270 U.S. and Foreign Patents 428 da Vinci System Base Established 200 Field Sales and Support Team Established Training Centers Worldwide FDA Clearances Laparoscopic, Thoracoscopic, Prostatectomy, Cardiotomy, Revascularization, Urology, Gynecology, Pediatric

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