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`Edwards Lifesciences Reports Second Quarter Results
`
`Page 1 of 7
`
`

`

`IRVINE, Calif., July 26, 2017 - Edwards Lifesciences Corporation (NYSE: EW), the global leader in patient-focused innovations for structural heart
`disease and critical care monitoring, today reported financial results for the quarter ended June 30, 2017.
`
`Second Quarter and Recent Highlights:
`
`• Sales grew 11 percent to $842 million; underlyingl sales increased 15 percent to $864 million
`• Global THVT sales grew 16 percent to $488 million; underlying sales increased 23 percent
`• U.S. THVT sales grew 28 percent to $316 million
`
`• EPS was $0.86, an increase of 48 percent; adjusted2 EPS grew 42 percent to $1.08
`• 2017 adjusted EPS guidance increased to $3.65 to $3.85, from $3.43 to $3.55
`• Recent FDA approvals of SAPIEN 3 valve-in-valve, INSPIRIS RESILIA and HemoSphere
`
`"We are pleased to report another quarter of strong performance, which continued the trend of robust growth driven by long term investments in
`innovative therapies," said Michael A. Mussallem, chairman and CEO. "Strong demand for TAVR therapy resulted in total sales growth of 15 percent on
`an underlying basis, which also reflected strength in all three of our product lines across all regions. And our transcatheter mitral and tricuspid valve
`technologies continue to represent exciting opportunities for breakthrough therapies for patients in need:'
`
`Second Quarter 2017 Results
`Sales for the quarter ended June 30, 2017 were $841.8 million, up 10.9 percent. Including the consumption of $22.5 million of stocking inventory
`in Germany, on an underlying basis sales grew 15.3 percent over the second quarter last year. Net income for the quarter ended June 30, 2017 was
`$186.1 million, or $0.86 per share. Adjusted earnings per share grew 42.1 percent to $1.08. Both reported and adjusted earnings per share include a
`$0.13 favorable impact from the company's excess tax benefit related to employee stock-based compensation compared to last year.
`
`For the quarter, the company reported Transcatheter Heart Valve Therapy (THVT) sales of $487.5 million, a 16.5 percent growth rate over the
`second quarter last year, or 23.3 percent on an underlying basis. Growth was led by continued strong therapy adoption across all geographies.
`
`As a reminder, in the first quarter customers in Germany purchased a net $61.8 million of SAPIEN 3 valves as additional inventory in anticipation
`of a potential supply interruption resulting from intellectual property litigation in that country. The company included these stocking sales in its reported
`results, but excluded them from the adjusted results reported in the first quarter, and will add them back to the adjusted results in subsequent quarters as
`this inventory is consumed to better reflect actual hospital usage.
`
`In the U.S., THVT sales for the quarter were $316.3 million, a 28.4 percent growth rate over the second quarter last year. Therapy adoption
`continued to be strong, and our SAPIEN 3 valve has sustained its excellent clinical performance across large and small valve centers," said Mussallem.
`
`Surgical Heart Valve Therapy sales for the quarter were $207.1 million, up 4.2 percent compared to the second quarter last year, or up 5.7 percent
`on an underlying basis. This growth benefitted from the recovery of the 2016 mitral valve supply interruption that lowered sales last year. Also lifting
`growth was continued strong demand of the EDWARDS INTUIW Elite valve system, which more than offset a shift of surgical aortic valve procedures to
`TAVR in the U.S.
`
`Critical Care sales were $147.2 million for the quarter, representing an increase of 3.7 percent versus last year, or 5.1 percent on an underlying
`basis. Strong performance was driven by double-digit growth in the company's Enhanced Surgical Recovery program, particularly in the U.S. and Asia
`Pacific.
`
`For the quarter, the company's gross profit margin was 74.9 percent, compared to 73.3 percent in the same period last year. This increase was
`driven primarily by a more profitable product mix, led by growing sales of transcatheter valves.
`
`Selling, general and administrative expenses increased to $243.8 million for the quarter, compared to $228.8 million in the prior year quarter. This
`increase was driven primarily by sales and marketing expenses related to transcatheter valves.
`
`Research and development investments for the second quarter increased to $134.4 million, compared to $112.5 million in the prior year period.
`This increase was primarily the result of continued investments in transcatheter valve development programs.
`
`Cash flow from operating activities for the second quarter was $197.7 million. After capital spending of $58.0 million, free cash flow was $139.7
`million.
`
`Cash, cash equivalents and short-term investments totaled $1.13 billion at June 30, 2017. Total debt was $1.02 billion.
`
`During the second quarter, the company repurchased 0.8 million shares for $73.8 million. Average diluted shares outstanding during the quarter
`were 215.7 million.
`
`Outlook
`For the full year 2017, given the strong first half results, the company's full year sales estimate is now at the high end of its previous $3.2 to $3.4
`billion guidance. The company is also raising its estimate for 2017 adjusted earnings per share to $3.65 to $3.85, from $3.43 to $3.55.
`
`For the third quarter of 2017, the company projects underlying sales, adjusting for the impact of Germany stocking sales consumption, to be
`between $810 and $850 million. and adiusted eaminos oer share of $0.80 to $0.90.
`
`Page 2 of 7
`
`

`

`"As we reflect on our first half results, we are very pleased with the performance achieved across all of our product lines and believe our future
`
`remains bright," said Mussallem. "We are confident our valuable innovations will result in a continued strong outlook as we deliver important solutions for
`
`the patients we serve."
`
`About Edwards Lifesciences
`
`Edwards Lifesciences, based in Irvine, Calif., is the global leader in patient-focused medical innovations for structural heart disease, as well as
`
`critical care and surgical monitoring. Driven by a passion to help patients, the company collaborates with the world's leading clinicians and researchers to
`
`address unmet healthcare needs, working to improve patient outcomes and enhance lives. For more information, visit www.Edwards.com and follow us
`
`on Twitter @EdwardsLifesci.
`
`Conference Call and Webcast Information
`
`Edwards Lifesciences will be hosting a conference call today at 2:00 p.m. PT to discuss its second quarter results. To participate in the
`
`conference call, dial (877) 704-2848 or (201) 389-0893. For 72 hours following the call, an audio replay can be accessed by dialing (877) 860-6853 or
`
`(201) 612-7415 and using conference number 13665308. The call will also be available via live or archived webcast on the "Investor Relations" section of
`
`the Edwards web site at ir.edwards.com or www.edwards.com. A live stream and archived replay can also be accessed via mobile devices by
`
`downloading Edwards' IR App for iPhone and iPad or Android.
`
`This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
`of 1934. These forward-looking statements can sometimes be identified by the use of words such as 'may," 'will," "should," "anticipate," "believe," "plan," "project,"
`"estimate," "expect," "intend,-guidance," "outlook" "optimistic," "aspire: "confident" or other forms of these words or similar expressions and include, but are not limited
`to, statements made by Mr. Mussallem, third quarter and full year 2017 financial guidance, and information in the Outlook section. Forward-looking statements are based
`on estimates and assumptions made by management of the company and are believed to be reasonable, though they are inherently uncertain and difficult to predict.
`Our forward-looking statements speak only as of the Elate on which they are made and we do not undertake any obligation to update any forward-looking statement to
`reflect events or circumstances after the date of the statement. If the company does update or correct one or more of these statements, investors and others should not
`conclude that the company will make additional updates or corrections.
`
`Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from that expressed or implied by the forward-
`looking statements. Factors that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements include
`uncertainties associated with the effectiveness and timing of new product launches, competitive dynamics and therapy adoption, particularly for THVT; the timing and
`scope of regulatory approvals and reimbursement levels for our products; the company's success in developing new products and avoiding manufacturing and quality
`issues; the impact of currency exchange rates; the timing or results of research and development, pending or future clinical milestones and clinical trials; unanticipated
`actions by the U.S. Food and Drug Administration and other regulatory agencies; unexpected litigation impacts or expenses, particularly in our THVT patent litigation;
`and other risks detailed in the company's filings with the Securities and Exchange Commission, including its Annual Report an Form 10-K for the year ended
`December 31, 2016. These flings, along with important safety information about our products, may be found at edwards.com.
`
`Edwards, Edwards Lifesciences, the stylized E logo, EDWARDS INTUITY, EDWARDS INTUITY Elite, Edwards SAPIEN, Edwards SAPIEN 3, Enhanced Surgical
`Recovery program, HemoSphere, INSPIRIS, INSPIRIS RESILIA, RESILIA, SAPIEN, SAPIEN 3, and Valtech Cardio are trademarks of Edwards Lifesciences
`Corporation. All other trademarks are the property of their respective owners,
`
`[1] 'Underlying' amounts are non-GAAP items and in this press release exclude foreign exchange fluctuations, sales return reserves associated with THVT product
`upgrades, and impacts of THVT stocking sales and consumption in Germany. See the Non-GAAP Financial Information page and reconciliation tables below.
`[2] Adjusted earnings per share is a rion-GAAP item computed on a diluted basis and in this press release excludes impairment of long-lived assets, intellectual property
`litigation expenses, amortization of intellectual property, fair value adjustments to contingent consideration liabilities arising from acquisitions, and the impact of THVT
`stocking sales and consumption in Germany. See the Non-GAAP Financial Information page and reconciliation tables below.
`
`EDWARDS LIFESCIENCES CORPORATION
`Unaudited Consolidated Statements of Operations
`(in millions. except per share data)
`
`Net sales
`Cost of sales
`
`Gross profit
`
`Selling, general, and administrative expenses
`Research and development expenses
`Intellectual property litigation expenses
`Change in fair value of contingent consideration
`liabilities
`Special charges
`Interest expense, net
`Other expense, net
`
`Three Months Ended
`June 3D,
`
`Six Months Ended
`June 3D,
`
`$ (cid:9)
`
`2017
`841.8
`211.1
`
`$ (cid:9)
`
`2016
`759-3
`202.5
`
`$ (cid:9)
`
`2017
`1,725.3
`426.7
`
`$ (cid:9)
`
`2016
`1,456.6
`382-8
`
`630.7
`
`556_8
`
`1,2986
`
`1,073.8
`
`243.8
`134.4
`7.7
`
`3.1
`31.2
`1.4
`3.5
`
`228.8
`112.5
`9.1
`
`0.4
`34.5
`2.4
`0.1
`
`473A
`2531
`17.9
`
`4.2
`31.2
`3.8
`5.8
`
`441.5
`214.3
`21.3
`
`1.0
`34.5
`4.8
`4.1
`
`Income before provision for income taxes
`
`205.6
`
`159.0
`
`499/
`
`352.3
`
`Provision for Income taxes
`
`19.5
`
`42_4
`
`62_9
`
`82.7
`
`Net income
`
`$ (cid:9)
`
`186.1
`
`5
`
`126.6
`
`5
`
`4166
`
`$ (cid:9)
`
`269.6
`
`Page 3 of 7
`
`

`

`Earnings per share:
`Basic
`Diluted
`
`$ (cid:9)
`$ (cid:9)
`
`0.88
`0.86
`
`$ (cid:9)
`$ (cid:9)
`
`0.60
`0.58
`
`$ (cid:9)
`$ (cid:9)
`
`1.97
`1.93
`
`$ (cid:9)
`$ (cid:9)
`
`1.27
`1.24
`
`Weighted-average common shares outstanding:
`Basic
`Diluted
`
`210.5
`215.7
`
`212.2
`217.3
`
`210_8
`216.1
`
`212.6
`217.6
`
`Operating statistics
`As a percentage of net sales:
`Gross profit
`Selling. general, and administrative expenses
`Research and development expenses
`Income before provision for income taxes
`Net income
`
`74.9%
`29.0%
`16.0%
`24.4%
`22.1%
`
`73.3%
`30.1%
`14.8%
`22.3%
`18.7%
`
`75.3%
`27.4%
`15.2%
`28_9%
`24.1%
`
`73.7%
`30_3%
`14.7%
`24.2%
`18.5%
`
`Effective tax rate
`
`9.5%
`
`25.1%
`
`1E6%
`
`23,5%
`
`Note: Numbers may not calculate due to rounding.
`
`EDWARDS LIFESCIENCES CORPORATION
`Unaudited Balance Sheets
`(in millions)
`
`ASSETS
`
`Current assets
`Cash and cash equivalents
`Short-term investments
`Accounts and other receivables. net
`Inventories, net
`Prepaid expenses
`Other current assets
`Total current assets
`
`Long-term investments
`Property, plant, and equipment, net
`Goodwill
`Other intangible assets, net
`Deferred income taxes
`Other assets
`
`June 30, 2017
`
`December 31,
`2016
`
`$ (cid:9)
`
`508/ $ (cid:9)
`623_6
`510/
`491_6
`54.1
`95_2
`2,283.4
`
`551.5
`627.9
`965.1
`408_6
`185.2
`116.2
`
`930.1
`341.0
`414.6
`396.6
`45.9
`111.6
`2,240.0
`
`532.1
`560.0
`626.1
`204.6
`203,6
`123.2
`
`Total assets
`
`$ (cid:9)
`
`5,138_5 $ (cid:9)
`
`4,510.0
`
`LIABILITIES AND STOCKHOLDERS' EQUITY
`
`Current liabilities
`Accounts payable and accrued liabilities
`
`Long-term debt
`Contingent consideration liabilities
`Other long-term liabilities
`
`Stockholders' equity
`Common stock
`Additional paid-In capital
`Retained earnings
`Accumulated other comprehensive loss
`Treasury stock, at cost
`Total stockholders' equity
`
`562_5 $ (cid:9)
`
`532.5
`
`1,016.8
`198/
`420_9
`
`244.7
`1,267.0
`4,33t9
`(157_8)
`(2,746.2)
`2,939_6
`
`822.3
`31.6
`504.6
`
`242.6
`1,167.6
`3,906.3
`(198,4)
`(2,499.3)
`2,619.0
`
`Total liabilities and stockholders' equity
`
`5,138_5 $ (cid:9)
`
`4,510.0
`
`Page 4 of 7
`
`

`

`EDWARDS LIFESCIENCES CORPORATION
`Non-GAAP Financial Information
`
`To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), the Company uses non-GAAP
`historical financial measures. Management makes adjustments to the GAAP measures for items (both charges and gains) that (a) do riot reflect the core operational
`activities of the Company, (b) are commonly adjusted within the Company's industry to enhance comparability of the Company's financial results with those of its peer
`group, or (c) are inconsistent in amount or frequency between periods (albeit such items are monitored and controlled with equal diligence relative to core operations).
`The Company uses the term "underlying" when referring to non-GAAP sales information, which excludes foreign exchange fluctuations, adjustments for discontinued and
`acquired products, sales return reserves associated with transcatheter heart valve therapy ('THVT') product upgrades, and the impact of THVT stocking sales and
`consumption in Germany. The Company uses the term "adjusted" to also exclude intellectual property litigation expenses, amortization of intellectual property, fair value
`adjustments to contingent consideration liabilities arising from acquisitions, gains and losses from significant investments, impairments, litigation, the impact of THVT
`stocking sales and consumption in Germany, and business development transactions. Fluctuations in exchange rates impact the comparative results and sales growth
`rates of the Company's underlying business. Management believes that excluding the impact of foreign exchange rate fluctuations from its sales growth provides
`investors a more useful comparison to historical financial results. The impact of foreign exchange rate fluctuations has been detailed in the "Reconciliation of Sales by
`Product Group and Region.'
`
`Guidance for sales and sales growth rates is provided on an "underlying basis," and projections for diluted earnings per share, net income and growth, gross profit
`margin, taxes, and free cash flow are also provided on a non-GAAP basis as adjusted for the items identified below due to the inherent difficulty in forecasting such
`items. The Company is not able to provide a reconciliation of the non-GAAP guidance to comparable GAAP measures due to the unknown effect, timing, and potential
`significance of special charges or gains, and management's inability to forecast charges associated with future transactions and initiatives.
`
`Management considers free cash flow to be a liquidity measure which provides useful information to management and investors about the amount of cash generated by
`business operations, after deducting payments for capital expenditures, which can then be used for strategic opportunities or other business purposes including, among
`others, investing in the Company's business, making strategic acquisitions, strengthening the balance sheet, and repurchasing stock.
`
`Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results, and evaluating current performance. These non-
`GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of
`the Company's operations by investors that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting the Company's
`business and facilitate comparability to historical periods.
`
`Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be
`considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. A reconciliation of non-
`GAAP historical financial measures to the most comparable GAAP measure is provided in the tables below.
`
`The Items described below are adjustments to the GAAP financial results In the reconciliations that follow:
`
`THVT Germany Stocking Sales - In the first quarter of 2017, the Company recorded $61.6 million in net stocking sales ($48.0 million, net of related costs) to customers
`In Germany, as these customers elected to purchase additional inventory in anticipation of a potential supply interruption resulting from recent Intellectual property
`litigation. In the second quarter of 2017, these customers consumed on a net basis $22.5 million of their stocking inventory ($17.9 million, net of related costs).
`
`THVT Sales Return Reserve and Related Costs - In the first quarter of 2016, the Company recorded a $1.7 million reversal of its sales return reserve ($1.5 million, net
`of related casts) upon delivery of the next-generation THVT products In the United States. In addition, In the first quarter of 2016, the Company recorded inventory
`reserves of $1.6 million related to estimated excess THVT inventory expected upon Introduction of next-generation THVT products in Japan.
`
`Intellectual Property Litigation Expenses - The Company incurred intellectual property litigation expenses of $10.2 million and $12.2 million in the first quarter of 2017
`and 2016, respectively, and $7.7 million and $9.1 million In the second quarter of 2017 and 2016, respectively.
`
`Amortization of Intellectual Property - The Company recorded amortization expense of $2.1 million and $1.7 million in the first quarter of 2017 and 2016, respectively,
`and $2.0 million and $1.9 million In the second quarter of 2017 and 2016, respectively, related to Intellectual property.
`
`Change in Fair Value of Contingent Consideration Liabilities - The Company recorded expenses of $1.1 million and 50.6 million in the first quarter of 2017 and 2016,
`respectively, and $3.1 million and $0.4 million in the second quarter of 2017 and 2016, respectively, related to changes in the fair value of Its contingent consideration
`liabilities arising from acquisitions.
`
`Impairment of Long-lived Assets - The Company recorded a $312 million charge in the second quarter of 2017 related to the other-than-temporary impairment of one
`of its cost method Investments and an associated long-term asset related to the Company's option to acquire this investee.
`
`Purchased In-process Research and Development - The Company recorded a $34.5 million charge in the second quarter of
`2016 related to the acquisition of technology for use in its transcatheter heart valve programs.
`
`EDWARDS LIFESCIENCES CORPORATION
`Unaudited Reconciliation of GAAP to Non-GAAP Financial Information
`(in millions, exempt per share data}
`
`RECONCILIATION OF GAAP TO ADJUSTED NET INCOME
`
`GAAP Net Income
`Growth Rate %
`
`Non-GAAP adjustments. -
`THVT Germany stocking sales
`THVT sales return reserve and related costs
`Intellectual property litigation expenses
`Amortization of intellectual property
`Change in fair value of contingent consideration
`liabilities
`Impairment of long-lived assets
`
`•
`
`Throe Months Ended
`Juno 30,
`
`Six Months Ended
`June ICI,
`
`$ (cid:9)
`
`2017
`166.1
`47.0%
`
`$ (cid:9)
`
`2016
`12E6 $ (cid:9)
`
`2517
`416.3
`54.4%
`
`$ (cid:9)
`
`2216
`269.6
`
`17.9
`
`7.7
`2.0
`
`3.1
`31.2
`
`(30.1)
`
`17,9
`4.1
`
`4.2
`31.2
`
`9.1
`1.9
`
`OA
`
`an r
`
`0.1
`21.3
`3.6
`
`1.0
`
`ea Z
`
`Page 5 of 7
`
`(cid:9)
`(cid:9)
`

`

`r-ur (cid:9)
`
`111-pliJLOORA5 I 30b-INIE LAI a nu UCIVCIATJ111 !Ur II
`
`Provision for Income taxes
`Tax effect on reconciling items Ir'
`Adjusted Net Income
`Growth Rate %
`
`$ (cid:9)
`
`(15.7)
`232.3
`
`$ (cid:9)
`
`40.8%
`
`(7.5)
`185.0 $ (cid:9)
`
`(8.8)
`434.8
`
`$ (cid:9)
`
`35.2%.
`
`(10.9)
`319.2
`
`
`
`RECONCILIATION OF GAAP TO ADJUSTED DILUTED EARNINGS PER SHARE
`
`GAAP Diluted Earnings Per Share
`Growth Rate %
`
`$ (cid:9)
`
`$ (cid:9)
`
`0.86
`48.3%
`
`0.58 $ (cid:9)
`
`$ (cid:9)
`
`1.93
`55.6%
`
`1.24
`
`Non-GAAP adjustments.
`THVT Germany stocking sales
`Intellectual property litigation expenses
`Amortization of intellectual property
`Change in fair value of contingent consideration
`liabilities
`Impairment of long-lived assets
`Purchased in-process research and development
`Adjusted Diluted Earnings Per Share
`Growth Rate %
`
`Note'. Numbers may not calculate due to rounding.
`
`0.06
`0.03
`0.01
`
`0.02
`0.10
`
`$ (cid:9)
`
`1.08
`42.1%
`
`0.03
`0.01
`
`0.14
`0.7E $ (cid:9)
`
`{0.11)
`0.06
`0.01
`
`0.02
`0.10
`
`$ (cid:9)
`
`2.01
`38.7%
`
`0.07
`0.01
`
`0.01
`
`0.14
`1.47
`
`(A) See description of non-GAAP adjustments on the 'Non-GAAP Financial Information" page.
`(0) (cid:9) The tax effect on non-GAAP adjustments is calculated based upon the impact of the relevant tax jurisdictions' statutory tax rates on the Company's
`estimated annual effective tax rate, or discrete rate in the quarter, as applicable. The tax effect on the THVT Germany stocking sales adjustment is
`calculated using the global effective tax rate.
`(C) (cid:9) All amounts are tax effected, calculated based upon the impact of the relevant tax jurisdictions' statutory tax rates on the Company's estimated
`annual effective tax rate, or discrete rate in the quarter, as applicable.
`
`EDWARDS LIFESCIENCES CORPORATION
`Unaudited Reconciliation of GAAP to Non-GAAP Financial Information
`(5 in millions)
`
`THVT OUTSIDE THE UNITED STATES UNDERLYING SALES GROWTH
`
`{In millions)
`GAAP THVT Outside the United States Sales
`Adjustment for THVT Germany stocking sales
`Foreign exchange impact
`THVT Outside the United States Underlying Sales
`Underlying Growth Rate %
`
`EDWARDS LIFESCIENCES CORPORATION
`Unaudited Reconciliation of GAAP to Non-GAAP Financial Information
`($ in millions)
`
`RECONCILIATION OF SALES BY PRODUCT GROUP AND REGION
`
`Throe Menthe Ended
`Juno 20,
`
`201 7
`171.2
`22.5
`
`201 6
`172.2
`
`$ (cid:9)
`
`(4.9)
`187.3
`
`193.7 i (cid:9)
`15.8%
`
`5
`
`5
`
`Saks by Product Group .11376]
`
`Transesibeler Haan Valve
`Therapy
`
`20
`2617
`
`20
`2010 (cid:9)
`
`Change
`
`GARP
`Growth (cid:9)
`Rate (cid:9)
`
`Germany
`Sleeking
`
`742617
`Underlying
`Sales
`
`Sales Rantrn
`Reserve
`
`FX Imps el (cid:9)
`
`20 2015
`U ndedying
`Sales
`
`Underlying
`Growth
`Rate •
`
`2017 Adjusted
`
`2015 Adjusted
`
`6487.6 508.6 (cid:9)
`
`0 (cid:9)
`
`68.9
`
`15.5% $ (cid:9)
`
`225 (cid:9)
`
`5 (cid:9)
`
`5406 (cid:9)
`
`S
`
`- S (cid:9)
`
`(4.9) (cid:9) $ (cid:9)
`
`4T3.7
`
`231%
`
`207.1
`
`198.7 (cid:9)
`
`8.4
`
`- (cid:9)
`
`207.1
`
`-
`
`Surgical Heart Va lye Therapy
`
`4.2%
`
`Critica l Care
`
`1472
`
`142.0 (cid:9)
`
`5.2
`
`17%
`
`1472
`
`-
`
`(2.8) (cid:9)
`
`12.0) (cid:9)
`
`18E9
`
`man
`
`5.7 16
`
`Si %
`
`Tool
`
`5841.8 5759.3 (cid:9)
`
`5 (cid:9)
`
`82.5
`
`10.9% 5
`
`225 (cid:9)
`
`5 (cid:9)
`
`85.4.3 (cid:9) ;
`
`- 5
`
`(9.7) 5 (cid:9)
`
`7401
`
`153%
`
`Sates by Product Group (YID)
`
`Transeatleeler Heart Valve
`Therapy
`
`YTD
`213
`2017
`
`YTD
`20
`2015 (cid:9)
`
`GAAP
`Growth
`Rel.,'
`
`Germany (cid:9)
`Stocking (cid:9)
`
`Change
`
`YID 20
`2017
`Underlying
`Soles
`
`Sales Rentrn
`Reserve
`
`FX Impart (cid:9)
`
`YID 20
`2015
`Underlying
`Sales
`
`Underlying
`Growth
`Rate •
`
`2017 Adjusted
`
`2018 Adjusted
`
`I 1.025.7 5 (cid:9) 768.4 (cid:9)
`
`2 (cid:9)
`
`240.3
`
`130.31 (cid:9) 5 (cid:9)
`
`987.4
`
`0
`
`(1.7) 2 (cid:9)
`
`(8.9) (cid:9) S (cid:9)
`
`775.8
`
`27.3 %
`
`Surgical /113311 Val,. Therapy
`
`405.5
`
`394.6 (cid:9)
`
`120
`
`465.5
`
`36.5% S (cid:9)
`
`3.0%
`
`Cdtlea I Care
`
`2920
`
`275.6 (cid:9)
`
`16.4
`
`8.08
`
`- (cid:9)
`
`2920
`
`-
`
`Total
`
`51.723.3 51,456,5 (cid:9)
`
`5 (cid:9)
`
`21E1.7
`
`18.4% 5 (cid:9)
`
`0.5.34 (cid:9) 5 (cid:9)
`
`185.0.0 $
`
`{1,7) 5 (cid:9)
`
`(15.31 (cid:9) 5 (cid:9)
`
`1,439.6
`
`17.1%
`
`(42] (cid:9)
`
`(2.2) (cid:9)
`
`390.4
`
`273.4
`
`4.1 %
`
`8.5%
`
`Page 6 of 7
`
`

`

`Saki. by Region 14113) (cid:9)
`
`ZQ 20 (cid:9)
`281 8 (cid:9)
`2017 (cid:9)
`
`Change (cid:9)
`
`United States (cid:9)
`
`S 478.9 $ 401.6 $ 77.4 (cid:9)
`
`Europe (cid:9)
`
`Japan (cid:9)
`
`1832 (cid:9)
`
`203.6 (cid:9)
`
`13.9} (cid:9)
`
`90.5 (cid:9)
`
`79.9 (cid:9)
`
`2017 Adjusted (cid:9)
`Sales (cid:9)
`20 2817 (cid:9)
`GAAP Germany Undadying Return (cid:9)
`Growth Rale' (cid:9)
`Stocking (cid:9)
`Seim (cid:9)
`Reserve (cid:9)
`
`2018 Adjusted
`
`FX Impact (cid:9)
`
`Underlying
`20 2016 (cid:9)
`Underlying Growth
`Bales (cid:9)
`Rate
`
`19.3 'A 3 (cid:9)
`19.7 ]% (cid:9)
`
`13.2 % (cid:9)
`
`tell %. (cid:9)
`
`1.5 V. (cid:9)
`
`- I (cid:9)
`
`478.9 $ (cid:9)
`
`- I (cid:9)
`
`- 5 (cid:9)
`
`401.6 (cid:9)
`
`19.3 4'7.
`
`22.5 (cid:9)
`
`206.2 (cid:9)
`
`90.5 (cid:9)
`
`88.7 (cid:9)
`
`355.4 (cid:9)
`
`22.5 (cid:9)
`
`16.5) (cid:9)
`
`72,7) (cid:9)
`
`11.1) (cid:9)
`
`(9.7) (cid:9)
`
`197.7 (cid:9)
`
`4.6%
`
`77.8 (cid:9)
`
`712 (cid:9)
`
`16.31.
`
`212 %
`
`348.1 (cid:9)
`
`10.7 %
`
`10.6 (cid:9)
`
`MA (cid:9)
`
`5.1 (cid:9)
`
`Rest of rtrirstri (cid:9)
`
`88.7 (cid:9)
`
`74.3 (cid:9)
`
`International (cid:9)
`
`202.5 (cid:9)
`
`367.8 (cid:9)
`
`Total (cid:9)
`
`3 541.5 3 759.3 4 823 (cid:9)
`
`10.9 '4 $ (cid:9)
`
`22.5 $ (cid:9)
`
`864.3 5 (cid:9)
`
`- 5 (cid:9)
`
`(9.7) 5 (cid:9)
`
`7490 (cid:9)
`
`15.3 %
`
`Salem by Replan 1YT0) (cid:9)
`
`YE) (cid:9)
`24 (cid:9)
`2018 (cid:9)
`
`Change (cid:9)
`
`GAAP (cid:9)
`Growth Rale' (cid:9)
`
`Germany (cid:9)
`Stocking (cid:9)
`
`Sales (cid:9)
`Re turn (cid:9)
`Reserve (cid:9)
`
`FX impact (cid:9)
`
`Undedying
`Growth
`Rate •
`
`2017 Adjusted (cid:9)
`
`2016 Adjusted
`
`YID (cid:9)
`20 (cid:9)
`2017 (cid:9)
`
`YID 20 (cid:9)
`2017 (cid:9)
`UnderlyIns (cid:9)
`Sales (cid:9)
`
`YID 20
`2016 (cid:9)
`Underlying (cid:9)
`Sales (cid:9)
`
`LI nked States (cid:9)
`
`$ 9435 5 777.1 5 106.4 (cid:9)
`
`21.4 % 3 (cid:9)
`
`- 5 (cid:9)
`
`9435 3 (cid:9)
`
`71.71 5 (cid:9)
`
`- S (cid:9)
`
`775,4 (cid:9)
`
`21.7 %
`
`Europe (cid:9)
`
`Japan (cid:9)
`
`444.7 (cid:9)
`
`392_1 (cid:9)
`
`169.8 (cid:9)
`
`146.6 (cid:9)
`
`52.6 (cid:9)
`
`23.3 (cid:9)
`
`Rest of Ateid (cid:9)
`
`187.3 (cid:9)
`
`140.9 (cid:9)
`
`26.4 (cid:9)
`
`13A % (cid:9)
`
`{39.3} (cid:9)
`
`405.4 (cid:9)
`
`- (cid:9)
`
`{74.7} (cid:9)
`
`15.9 % (cid:9)
`
`1.6.7
`
`i'.. (cid:9)
`
`169.8 (cid:9)
`
`167.3 (cid:9)
`
`71.3) (cid:9)
`
`0.7 (cid:9)
`
`International (cid:9)
`
`7515 (cid:9)
`
`679-5 (cid:9)
`
`102.3 (cid:9)
`
`15.1 % (cid:9)
`
`(39.3) (cid:9)
`
`7423 (cid:9)
`
`- (cid:9)
`
`(15.37 (cid:9)
`
`377.4 (cid:9)
`
`145.2 (cid:9)
`
`141.EE (cid:9)
`
`604.2 (cid:9)
`
`7.4 %
`
`360 %
`
`18.1 %
`
`11.8 %
`
`Total (cid:9)
`
`51,723.3 51,486.9 5 2691 (cid:9)
`
`11.4 % $ (cid:9)
`
`130.37 S (cid:9)
`
`158.6.0 3 (cid:9)
`
`0.711 5 (cid:9)
`
`05.37 $ (cid:9)
`
`1,439.8 (cid:9)
`
`17.1 %
`
`Numbers may not calculate due to rounding.
`
`Contact Information :
`
`Media, Sarah Huoh, +1-949-250-507o, or
`Investors, David K. Erickson, +1-949-250-6826, both of Edwards Lifesciences Corporation
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