COMPANY OVERVIEW Edwards Lifesciences is the global leader in the science of heart valves and hemodynamic monitoring, with more than five decades of experience in partnering with clinicians to develop life-saving innovations. Headquartered in Irvine, Calif., Edwards treats advanced cardiovascular disease with its market-leading heart valve therapies, and critical care and vascular technologies, which are sold in approximately 100 countries. Many of the company’s products are considered industry “gold standards” and over 95% of its sales are from products in leading positions. Edwards has extensive manufacturing operations in North America, Europe, Singapore and the Caribbean. QUICK FACTS Global Headquarters Irvine, CA, USA Worldwide Employees 7,800 Website edwards.com INVESTMENT ATTRIBUTES ■ The #1 heart valve company in the world and the global leader in acute hemodynamic monitoring ■ Market leading positions with high barriers to entry ■ Strong brand recognition and relationships with leading clinicians ■ A robust R&D pipeline ■ Strong balance sheet and free cash flow generation ■ Well positioned for a challenging economic climate ■ Committed to delivering sustainable growth and profitability MAJOR PRODUCT LINES Heart Valve Therapy Edwards is the world’s leading manufacturer of tissue replacement heart valves and valve repair products, which are used to treat a patient’s diseased or defective heart valve. The company produces pericardial and porcine valves from biologically inert animal tissue sewn onto proprietary wire form stents. Critical Care Edwards Lifesciences is a world leader in hemodynamic monitoring technologies used to measure a patient’s heart function in surgical and intensive care settings, and is the global leader in the broader field of disposable pressure monitoring devices. Cardiac Surgery Systems Edwards offers technologies that complement its Heart Valve Therapy product line, including products used to perform minimally invasive cardiac surgery procedures. Stock Symbol EW Stock Exchange NYSE Stock Price $101.20 Shares Outstanding 118.2 M Market Capitalization $11.9 B Senior Management Ownership Approximately 4% Total Employee Ownership Approximately 7% Net Sales $1.90 –1.97 B Gross Profit Margin 74–75% Net Income Growth ~30% Free Cash Flow (a) $240 – 260 M STOCK INFORMATION (As of July 31, 2012) 2012 FINANCIAL GUIDANCE (As of July 24, 2012) EDWARDS LIFESCIENCES Investor Fact Sheet July 2012
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COMPANY OVERVIEW
Edwards Lifesciences is the global leader in the science ofheart valves and hemodynamic monitoring, with morethan five decades of experience in partnering with cliniciansto develop life-saving innovations. Headquartered in Irvine,Calif., Edwards treats advanced cardiovascular disease withits market-leading heart valve therapies, and critical careand vascular technologies, which are sold in approximately100 countries. Many of the company’s products areconsidered industry “gold standards” and over 95%of its sales are from products in leading positions. Edwardshas extensive manufacturing operations in North America,Europe, Singapore and the Caribbean.
QUICK FACTS
Global Headquarters Irvine, CA, USA
Worldwide Employees 7,800
Website edwards.com
INVESTMENT ATTRIBUTES
� The #1 heart valve company in the world and theglobal leader in acute hemodynamic monitoring
� Market leading positions with high barriers to entry� Strong brand recognition and relationships with
leading clinicians� A robust R&D pipeline� Strong balance sheet and free cash flow generation� Well positioned for a challenging economic climate� Committed to delivering sustainable growth
and profitability
MAJOR PRODUCT LINES
Heart Valve Therapy Edwards is the world’s leadingmanufacturer of tissue replacement heart valves andvalve repair products, which are used to treat a patient’sdiseased or defective heart valve. The company producespericardial and porcine valves from biologically inertanimal tissue sewn onto proprietary wire form stents.
Critical Care Edwards Lifesciences is a world leader inhemodynamic monitoring technologies used to measurea patient’s heart function in surgical and intensivecare settings, and is the global leader in the broaderfield of disposable pressure monitoring devices.
Cardiac Surgery Systems Edwards offerstechnologies that complement its Heart ValveTherapy product line, including productsused to perform minimally invasive cardiacsurgery procedures.
Stock Symbol EW
Stock Exchange NYSE
Stock Price $101.20
Shares Outstanding 118.2 M
Market Capitalization $11.9 B
Senior Management Ownership Approximately 4%
Total Employee Ownership Approximately 7%
Net Sales $1.90–1.97 B
Gross Profit Margin 74–75%
Net Income Growth ~30%
Free Cash Flow(a) $240–260 M
STOCK INFORMATION (As of July 31, 2012)
2012 FINANCIAL GUIDANCE (As of July 24, 2012)
EDWARDS LIFESCIENCES
Investor Fact SheetJuly 2012
Edwards Lifesciences Corporation Irvine, USA I Nyon, Switzerland I Tokyo, Japan I Singapore, Singapore I São Paulo, Brazil edwards.com
FINANCIAL PERFORMANCE
NON-GAAP DILUTED EARNINGS PER SHARE(b)
R&D INVESTMENT (in millions)
Q2 ‘12 SALES – BY PRODUCT LINE
Surgical Heart
Valve Therapy 43%
Critical Care 29%
TranscatheterHeart Valves 28%
Q2 ‘12 SALES – BY GEOGRAPHIC LOCATION
United States 42%
Europe 31%
Japan 15%
Rest of the World 12%
(a) Free Cash Flow: Cash flowfrom operating activities,less capital spending
BUSINESS STRATEGY� Transform patient care through innovative technologies with clinical superiority� Deliver strong financial results, while investing in future growth by maintaining
a robust product pipeline� Maintain a focused portfolio of market leading products� Use strong operating cash flow to acquire complementary technologies and/or
repurchase shares
NEW PRODUCT DEVELOPMENTTranscatheter Heart Valves The Edwards SAPIEN transcatheter heart valve integratesballoon expandable stent technology with a tissue replacement heart valve. The valve iscompressed onto a balloon and delivered through a catheter to replace the diseasedaortic valve. The balloon mounted valve can be delivered through a small incision in thefemoral artery or inserted through a small incision betwenn the ribs(d). The Edwards SAPIENtranscatheter valve is available in the U.S., Europe and other international markets.The Edwards SAPIEN XT transcatheter heart valve(d), when paired with the new
NovaFlex+ transfemoral or Ascendra2 transapical delivery system, allows for a significantreduction in profile. The Edwards SAPIEN XT heart valve is available in Europe and otherinternational markets.
Minimally Invasive Surgical Valve The EDWARDS INTUITY(d) valve system is a rapiddeployment, surgical aortic valve system. This new system is designed to reduce proceduretimes and simplify valve implantation through a small incision. The EDWARDS INTUITYvalve is currently offered in Europe and recently received approval from the FDA to begina clinical trial in the U.S.
Glucose Monitoring Edwards is working with a third party to develop a unique technologythat will automatically measure glucose levels of patients in an operating room or intensivecare unit setting. The GlucoClear(d) system is currently in limited release in Europe.
(d) CAUTION: The Edwards SAPIEN valve with Ascendra transapical delivery system, Edwards SAPIEN XT valve with NovaFlex+ or Ascendra2, EDWARDS INTUITY valve system, and GlucoClear are investigational devices not available commercially in the United States.
This document contains forward-looking statements that are based on estimates, assumptions and projections. Important factorsthat could cause results to differ materially from those expected by management may be found in documents filed by the companywith the Securities and Exchange Commission. Some figures are not prepared in accordance with Generally Accepted AccountingPrinciples (GAAP). Visit edwards.com for a reconciliation of the differences between the GAAP and non-GAAP figures.
Edwards, Edwards Lifesciences, the stylized E logo, 1-800-4-A-HEART, Edwards SAPIEN,Edwards SAPIEN XT, Ascendra2, EDWARDS INTUITY, GlucoClear and NovaFlex+ are trademarksof Edwards Lifesciences Corporation.
$1.98$1.84$1.52
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$246$204$175
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EDWARDS’ 3-YEAR STOCK PERFORMANCE as of July 31, 2012 � EW: 340.1% � RXP: 32.5% � S&P 500: (6.1)% S&P MidCap 400: 9.6%
