Investor Presentation

Q4 2019
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.

Note: Some products shown in this presentation may not yet have obtained
regulatory clearances in this country. These products are therefore not for sale in
this market. Please check with your local Regulatory contact for current status.

2
As of 2018, there were…

1500+ 1,000,000+ 900

peer reviewed procedures da Vinci systems
articles published performed placed

Cumulative

18,000+ 6,000,000+ 4986

peer reviewed procedures da Vinci systems
articles published performed placed globally

3
Worldwide Procedure Trend
2019 Guidance
1,250,000 17-18% Growth
2018
18% Growth
1,000,000

750,000

500,000

250,000

0
2013 2014 2015 2016 2017 2018 2019
Urology
Other GeneralGynecology
Surgery General Surgery
Gynecology Urology Other
Estimated Growth

4
Growth in procedure categories
Global over past 10 years
As of December 31, 2018
400,000

350,000 TORS
Thoracic
300,000

General Surgery
250,000

Gynecology
200,000
Urology

150,000

100,000

50,000

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Surgery Gynecology Urology Thoracic Surgery TORS

5
System Placements Installed Base

+35% +13%
900 5,000
4,500
800
4,000
700
3,500
600
3,000
500
2,500
400
2,000
300 1,500
200 1,000
100 500
0 0
2016 2017 2018 2016 2017 2018

Rest-of-World Asia Europe U.S. Rest-of-World Asia Europe U.S.

6
Total Revenue*
2018
19% Growth
71% Recurring
$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$0
2013 2014 2015 2016 2017 2018
Systems Service Instruments
& Accessories
*Dollar amounts in millions

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Q3 YTD 2019 Highlights

Da Vinci Procedure Growth Da Vinci Surgical Systems Shipped

18% vs Q3 YTD 2018 783 vs 636 Q3 YTD 2018
17% US Driven by general surgery, thoracic, urology,
and benign gynecology procedures Da Vinci Installed Base
21% OUS Driven by urology, early stage general 5,406 globally, up 12% vs Sep 30, 2018
surgery, and gynecology
Strength in Germany, France, Japan, and Korea

FDA 510(k) Clearances Revenue

Ion™: endoluminal system for lung biopsy $3.2 billion
Iris™: augmented reality overlay software 20% growth vs Q3 YTD 2018
Da Vinci SP®: transoral surgery indication Proforma Operating Profit *
SureForm™: 45mm stapler $1.3 billion (40% of net revenue)
Da Vinci Handheld Camera 14% growth vs Q3 YTD 2018

* Non-GAAP Financial Measure. Non-GAAP adjusted measure should be viewed in addition to, and not as an alternative for, financial
results prepared in accordance with U.S. GAAP. See Financial Data Tables published on the Company’s website for more information about 8
these non-GAAP financial measures and for a reconciliation of the non-GAAP measure to the most comparable GAAP measures.
Recurring Revenue Model
2018: 71% Recurring Revenue
• Including $51M Systems Leasing

Instruments &
Accessories
$700-$3,500
da Vinci® Surgical per Procedure
System 2018 Rev: $1,962M
$0.5M - $2.5M
2018 Rev: $1,127M Service
$80K - $190K/Year
2018 Rev: $635M
Da Vinci Systems Operating Leasing Program
100

• Da Vinci direct leasing program established in 2013 with 90

Leased System Placements

80
expansion to date.
• Enables customers to establish or expand their robotics 70

60
programs without the initial capital investment. 33.2% 32.2% 33.5%
50
• Revenue and gross profit earned ratably over the lease term 40
29.0%

rather than at the time of placement for systems sold. 30 25.1%

• Gross margins for leasing arrangements during the term of 20
23.1%
20.0%

the lease are similar to gross margins for purchased systems. 10

• 33% of Q3 YTD 2019 system placements and 10% of Q3 0

2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3
2019 ending installed base were under operating leases.
US Non-US Leasing Percentage

600 560 $30 $27.4M

Operating Lease System Revenue

$25.1M
Operating Lease Installed Base

486
500 $25
423 $20.4M
400 $20
350 $16.4M
10%
279 9% $15 $14.0M
300 8%
231 $11.5M
7%
194 6% $9.5M
200 5% $10
4% $59.3k $60.6k $59.3k
$57.9k $58.8k $58.3k
$56.4k
100 $5

- $0
Q118 Q218 Q318 Q418 Q119 Q219 Q319
Q118 Q218 Q318 Q418 Q119 Q219 Q319
Operating Leases % of Total Installed Base Operating Lease Revenue Avg Revenue per System

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da Vinci System Installed Base
5,406 Worldwide as of September 30, 2019

Europe
936
USA 3,459

Asia
718

Rest of World 293

560 of 5,406 installed systems under operating lease.
Where are we heading in 2019
and beyond?

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Our goal is not a mystery

Better outcomes
more than minimally
Better patient experience invasive tools.
requires

Better care team experience more than digital

technology.
Lower total cost of care

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How we get there: Through ingenuity and intelligent technology
that expands the potential of physicians to heal without constraints

Better outcomes Advanced tools

& technologies

Better patient experience Augmentation of

care team capabilities

Better care team experience Data analytics for deep

insight and guidance

Lower total cost of care

Substitution of
Invasive modalities

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FDA 510(k)
Clearance
Q1 ‘19:

Da Vinci SP for
transoral
surgery
indication.

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FDA 510(k)
Clearance
Q1 ‘19:

Ion™ endoluminal
system to enable
minimally invasive
biopsy in the
peripheral lung.

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FDA 510(k)
Clearance Q1 ’19:

Iris™ augmented
reality product.

17
Simulation
is becoming
increasingly
capable.

More than
3,200 da
Vinci
simulators
installed as
of 9/30/19.

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Meaningful insights are key to achieving more predictable
outcomes
Minimally invasive interventions are a
sophisticated ecosystem of highly trained
professionals organized around the care for
an ill person.
Care team Control center

22
Intelligent Surgery

+ +

Human Smart systems Digital

understanding & instruments insights

Time and Motion Studies Cloud-based systems Procedure reports

Design EndoWrist instruments Strategic and financial insights

Human Factors Advanced visualization OR operational Insights

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Our investment philosophy

The need for improvement
in acute interventions is
substantial and durable; we
are assertive in pursuit of
organic innovation in products
and regions as first priority.
As we grow, we invest in
operational efficiencies at
scale to allow for flexibility in
pricing for customers and re-
investment in our business.
We pursue collaborations We return capital to
and acquisitions that can shareholders with a
accelerate outcome and focus on long-term value.
efficiency improvements.

At this point in time, we believe we have a unique

opportunity to expand the benefits of minimally
invasive medical interventions around the world and
will continue to invest in the business accordingly.

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Intuitive Japan
April 2018
Japan Procedures
Additional procedures reimbursed

June 2014
Intuitive opens direct office

April 2012
Prostatectomy reimbursed

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
(Est)

25
Recent Regional Investments

Invested in China through Intuitive Fosun

Pharma joint venture – Chindex division of Fosun
Pharma integration into JV starting in Q1 2019

Acquired Intuitive business in Taiwan in Q4 2018

Acquired Intuitive business in India in Q2 2018

Germany - Acquired Schölly Fiberoptic's robotic

endoscope business

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2019 Priorities
Accelerate access to and quality of surgery and acute interventions

Support Adoption in General Surgery and in key procedures in OUS markets

Launch da Vinci SP and Ion platforms

Drive intelligent surgery innovation

Drive clinical and economic validation in emerging regions & procedures

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