ISRG_Investor Presentation 021016
Transcript of ISRG_Investor Presentation 021016
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Investor PresentationQ1 2016
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Forward Looking Statement
These slides and any accompanying oral presentationby 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 & Business
Model
• Business Review
• Opportunities & Catalysts for
Growth
• Corporate Assets & 2016
Priorities
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COMPANY OVERVIEW ANDBUSINESS MODEL
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Corporate Overview• Founded in 1995, IPO 2000
• Over 3 million da Vinci® procedures performed to date
• Approximately 652,000 da Vinci® procedures performed in2015, up 14% from 2014
•
$2.38 billion 2015 Revenue, up 12% from 2014• 3,597 da Vinci ® System installed base as of 12/31/15
– 2,399 United States, 1,198 OUS
• Numerous FDA and International Regulatory Clearances
• Primary Markets - Urology, Gynecology, General Surgery,Cardiothoracic
.
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Annual ServiceAgreement
$100K - $170K/Year
2015 Rev = $465M
da Vinci® Surgical System
$0.6M - $2.5M
2015 Rev = $722M
Instruments &Accessories
$700-$3,200per procedure
2015 Rev $1,198M
Recurring Revenue Model
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Annual Service Rev Per System
da Vinci® Surgical System ASP
Inst & Accy Rev Per Procedure
Multiple Segment Product Offering
$0.6M
$170K$100K
$3,200$700
$2.5M
da Vinci Si-e
Single-Site
• Dual Console Xi
• Firefly
• Table Motion
Endowrist
• Vessel Sealer
• Stapler
2015: $1.54M
2015: $1,840
2015: $138K Dual Console Xida Vinci Si-e
Includes company estimates and approximate ranges
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• Length of stay
• Conversions to open surgery
• Complications
• Readmissions
• Surgical site infections (SSI)
• Instrument and accessory costs
Comprehensive Cost of Care
• Capital costs
• OR time costs
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Family of da Vinci Systems ~1400 Skill Simulators,Dual Surgeon Consoles
3D HD Imaging,
Fluorescent Imaging
24/7/365
Comprehensive
Support
Integrated Energy,
Stapling, Vessel Sealing
40+ Training
Course Offerings
10,000 Peer-Reviewed Publications
1700+ Comparative Studies
Analytics and
Efficiency Programs
da Vinci Ecosystem
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BUSINESS REVIEW
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2015 Objectives• Expanding da Vinci in general
surgery, particularly colorectal
surgery and hernia repair
• Filling out our product line for
da Vinci Xi and launching in keymarkets globally
• Developing our organizational
capabilities and markets in
Europe and Asia• Advancing our technologies to
improve surgery
• Lowering our direct product costs
• Areas of Strength
– General surgery growth
– International procedure
growth
– da Vinci Xi product line
and feature set
– Growing acceptance of
robotic -assisted surgery
– Extensive, established
da Vinci ecosystem
• Challenges – Structural barriers in
some markets
– Single-Site procedures
2015 Commentary
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Worldwide Procedure Trend
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2010 2011 2012 2013 2014 2015 2016
Urology Gynecology General Surgery Other
2015:14% Growth
2016 Guidance:
9-12% Growth
Company estimates
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0
100,000
200,000
300,000
400,000
500,000
2010 2011 2012 2013 2014 2015
Urology Gynecology General Surgery Other
+11%
US Procedure Trend
Company estimates
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Company estimates
OUS Procedure Trend
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2010 2011 2012 2013 2014 2015
Europe Asia Rest of World
+26%
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System Placement Trend by Region
0
20
40
60
80
100
120
140
160
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015
U.S. Europe Asia Rest-of-World
2015 +14%
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System Placement Trend by Platform
0
20
40
60
80
100
120
140
160
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015
Xi Si S / Sie
2015 +14%
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Total Revenue*
$0
$500
$1,000
$1,500
$2,000
$2,500
2010 2011 2012 2013 2014 2015
Systems Service Inst & Accy
2015
70%
Recurring
*Dollar amounts in millions
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Europe
608
USA2,399
Installs by Country and Region
Asia
423
da Vinci® System Installed Base
Rest of World: 167
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OPPORTUNITIES AND CATALYSTSFOR GROWTH
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Open Surgery Remains Common – U.S.
Yr: 2004
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Prostate Malignant
Hyst
Benign Hyst
Robotic Other MIS Open
Source: ISI estimates and third party data
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Open Surgery Remains Common – U.S.
Yr: 2015
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Prostate Malignant
Hyst
Benign Hyst
Robotic Other MIS Open
Source: ISI Data as well as Estimates
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Open Surgery Remains Common – U.S.
Yr: 2015
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Prostate Malignant
Hyst
Benign Hyst Colorectal Ventral
Hernia
Thoracic
Robotic Other MIS Open
Source: ISI estimates and third party data
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Total Procedure Markets
• As many as 4 million procedures available forproducts on the market today in countries for
which we have clearances
• Over time, O.U.S. opportunity will be greaterthan U.S.
• Roughly half of opportunity based on
underlying cancer as cause
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ISI Investments
•Advanced imaging
• Advanced instrumentation and computer-
enhanced precision at tissue
• Less invasive access• Training technologies
• Next generation robotic technologies
• International organization
• Continued clinical and economic validation
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Building da Vinci Xi Value:
New Xi Products / Markets
• Vessel Sealer and Firefly launched 2014
• Korea Clearance Q4 14
• 45 mm Stapler launched Q1 15
•Clearance in Japan end of Q1 15
• Harmonic curved shears and other new
instruments FDA Cleared Q2 15
• Table motion FDA Cleared Q1 16
• Single-Site 510(k) submitted Q3 15
• 30 mm Stapler 510(k) submitted Q3 15
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da Vinci Sp
The da Vinci SP is not commercially available. 2016 emphasis will be on clinical investigations
focused on trans oral, trans abdominal, and trans anal procedures.
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CORPORATE ASSETS AND2016 PRIORITIES
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2016 Priorities
• Expand da Vinci 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
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Extraordinary people
3,597 da Vinci® System installed base 12/31/15
Numerous FDA and international regulatory clearances
Extensive instrument and accessory product line
Intuitive Surgical training centers worldwide
Ownership of or exclusive rights to over 2,100 U.S. and
foreign patents and more than 1,500 US and foreignpatent applications
da Vinci® patient awareness
Corporate Assets
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