2019 boston scientific performance report/media/files/b/...2019 boston scientific performance report...

2019 Boston Scientific Performance ReportForeword

April 13, 2020

As we publish this report, the world is facing unprecedented challenges amid the COVID-19 pandemic. During this uncertain time, our priority is to protect and aid the health and safety of our employees, our physician customers and their patients. That has always meant ensuring that our life-changing devices and therapies would be available when needed. Now, it also means finding new and creative ways to support the frontline healthcare providers working tirelessly to address the COVID-19 pandemic. We will continue to make decisions guided by our core values to support our global community.

To help meet the urgent needs of healthcare providers, we have contributed to COVID-19 relief efforts globally through monetary and supply donations, and by providing engineering and manufacturing expertise and resources. This includes donations of personal protective equipment and medical equipment to local hospitals and government agencies. The company is also providing support to children, families and the most vulnerable through direct financial contributions to community and global non-profit organizations including Project HOPE and International Federation of Red Cross and Red Crescent Societies.

It will take time for nations and local communities to heal from the devastating and wide-ranging impact of this complex situation. At Boston Scientific, we have always found our purpose in working alongside healthcare providers to solve some of healthcare’s toughest challenges. Our commitment is unwavering, regardless of the obstacles we face today, and we will emerge from this challenging time stronger, together.

To learn more about our actions in response to the COVID-19 pandemic, visit our website.

Please note that the following report summarizes the company’s performance in 2019 and includes the letter to our stockholders from our 2019 Annual Report, which was written before the COVID-19 global pandemic.

https://www.bostonscientific.com/en-US/boston-scientific-response-to-the-covid-19-pandemic.html

2019 Performance Report

Every day, Boston Scientific is...

Boston Scientific 2019 Performance Report 1

Throughout this document, unless otherwise noted, all revenue and other growth rates represent fiscal year 2019 compared to fiscal year 2018.

Letter from the company’s 2019 Annual Report, written before the COVID-19 global pandemic.

Feature Patient Highlight

A Message to Our Stockholders

Financial Highlights

Our Mission and Core Values

Boston Scientific at a Glance

Boston Scientific by the Numbers

Corporate Social Responsibility

Our Patients Our People Our Planet Our Practices Non-GAAP Reconciliations

achieving success through our people.

transforming the lives of our patients.

helping shape the future of our planet.

committing to responsible practices.

2 Feature Patient Highlight

3 A Message to Our Stockholders

9 Financial Highlights

10 Our Mission and Core Values

11 BostonScientificataGlance

12 BostonScientificbytheNumbers

13 CorporateSocialResponsibility atBostonScientific

16 Our Patients

22 Our People

44 Our Planet

51 Our Practices

65 Non-GAAPReconciliations










Katharina Bauer: The Heart of a Champion The sport of pole vaulting is not for the faintofheart.Competitorssprintdownatrackandlaunchthemselvesintotheair,summoningenoughspeedtocleara crossbarhighoverhead.For29-year-oldKatharinaBauer,polevaultingisherlife’spassion—orasshesays,“herbiglove.” Soit’snotsurprisingthatKatharina’s goalistotakeherpassionalltheway totheOlympics.

Therewasatime,however,when Katharinawasunsurewhetherher heartwasuptothechallenge.Asa child,shewasdiagnosedwithaconditionthatcausedherhearttohaveaperilously highnumberofbeats.Whileahealthyhumanheartbeatsabout100,000times aday,bytheageofseven,Katharina experienced6,000extrabeatsdaily. In2009,sheunderwentherfirstheart surgery.Herconditioneventually worsenedto18,000extrabeatsper day,leadingtoasecondheartsurgeryeightyearslater.

Despitethesechallenges,Katharinacon-tinuedtocompeteasaprofessionalpolevaulterandcapturedagoldmedalatthe2018GermanIndoorAthleticsChampion-ship. At a regular health check after the event,herdoctordetectedanothertypeofabnormalheartbeat—oneKatharina

learnedcancauseventricularfibrillationandsuddencardiacdeath.Thenextday,she madethedecisiontogetasubcutaneous implantablecardioverterdefibrillator(S-ICD).

InApril2018,shewasimplantedwiththeBostonScientificEMBLEM™MRIS-ICD System.TheS-ICDsystem,whichincludes a pulse generator and lead placed just undertheskin,monitorsKatharina’sheartandsendsanelectricalshockifitbeats abnormallyfast,protectingherfromsuddencardiacarrest.Withcontinuedmedicalsupervision,Katharinareturnedtotraining,describingherdefibrillatorasaguardianangel.Sixweeksaftertheprocedure,she

cleared4.20metersat acompetition.Lessthanayearlater,shereturnedtotheGer-manIndoorAthleticsChampionshipandwonasilvermedal.

“Iamgratefulforeveryday,everyjumpandeverytraining.IlovethatIcanfollowmypassion,”Katharinasays.AsshetrainstoqualifyforthenextSummerOlympicsandbecomethefirstOlympianwitha defibrillatortocompete,Katharinano longerfearsforherheart.“Iturneditaround,”shetellsus.“Thereisnoneed forfearaslongasyoufeelthatfireinside.”

” I am grateful for every day, every jump and every training. I love that I can follow my passion. There is no need for fear as long as you feel that fire inside.” Katharina Bauer, Professional Pole Vaulter

” I am grateful for every day, every jump and every training. I love that I can follow my passion. There is no need for fear as long as you feel that fire inside.” Katharina Bauer, Professional Pole Vaulter

https://www.bostonscientific.com/en-US/products/defibrillators/emblem-s-icd-system.html?cid=ps179898&gclid=EAIaIQobChMItKvuhsm76AIVCJSzCh1g9AvREAAYASAAEgLYgPD_BwE

https://www.bostonscientific.com/en-US/products/defibrillators/emblem-s-icd-system.html?cid=ps179898&gclid=EAIaIQobChMItKvuhsm76AIVCJSzCh1g9AvREAAYASAAEgLYgPD_BwE


Weenter2020withaforty-yearlegacy ofadvancingscience—andfortyyearsguidedbyourmissiontotransformlivesthroughmedicalsolutionsthatimprovethehealthofpatientsaroundtheworld.Ourcompanyhasachievedagreatdealinitsfourdecades,andthoseaccomplishmentsput us on solid footing for the future. As wemoveintothenextdecade,wefacechallengesfromthegrowingburdenofchronicconditionsamonganaging population,thedemandsofvalue-basedcareandnew,disruptivecompetitors.Thesetrendsalsorepresentopportunities,andIamenergizedandinspiredbythe significantadvancementswehavemadeandwillcontinuetomake,andbythe livesthathavebeenextendedor enhancedbecauseofourproducts. Inthelastyearalone,wehelpedmore than30millionpatients.

KatharinaBauer,apolevaultcompetitor fortheGermanNationalteam,isoneofthosepatients.Sinceshewasyoung, Katharina has had a heart condition that causesherhearttobeatirregularly.In April2018,herdoctorsimplantedourEMBLEM™MRIsubcutaneousimplantablecardioverterdefibrillator(S-ICD)system.Itmonitorsherheartandsendsanelectricalcurrenttoresetit,ifnecessary.Sixweeksafterherdevicewasimplanted,Katharinastartedcompetingagain.Withinayear, shewonasilvermedalattheGermanIndoorAthleticsChampionship.Today shehasambitionstocompeteinthe nextsummerOlympics.

Forour36,000employees,ourmissionandstorieslikeKatharina’sfuelourpursuitofinnovation—forthesakeofpatients,societyandourstockholders.

Despitemultiplechallengesin2019,I’mproudofhowstronglyourglobalteamperformedacrossbusinesses,functionsandregions.Whilewestrivetodeliverhighqualityresultseachquarter,weareevervigilantaboutwhatliesfurtherahead,andtheongoingneedtoadapttotherapidlyevolvinghealthcareenvironment.Wemustreducethecostsofimprovingoutcomesanddomoretobenefithealthcaresystemsasawhole.Thisworkrequiresarelentlesssenseofurgency.Wecallitwinningspirit,anditdrivesustomeetfuturechallengesand to develop and deliver the highest qualityandsafestproductsandsolutions.

2019 Business Results In2019,BostonScientificstrengthenedourportfolioandcapabilitieswhiledeliveringstrong revenue and adjusted earnings per sharegrowth.1Thesefinancialscontinueamorethanfive-yeartrendofexcellentperformance.Duringthistime,Boston

1 Adjusted operating margin, adjusted earnings per share and related growth rates are non-GAAP measures that exclude the impacts of certain charges (credits) which may include amortization expense, goodwill and intangible asset impairment charges, acquisition/divestiture-related net charges and credits, restructuring and restructuring-related net charges and credits, litigation-related net charges and credits, investment impairment charges, pension termination charges, EU MDR implementation charges, debt extinguishment net charges and credits, deferred tax expenses (benefits) and discrete tax items; see non-GAAP reconciliations on pages 65-67. 2 Organic revenue growth rates are non-GAAP measures that exclude the impact of foreign currency fluctuations and the first 12 months of sales from acquisitions in the periods for which there are no prior period related net sales. Organic revenue growth also excludes the impact of the divestiture of our global embolic microspheres portfolio, a transaction entered into in connection with obtaining the antitrust clearances required to complete the acquisition of BTG plc (BTG); see non-GAAP reconciliations on pages 65-67. 3 Full year 2018 adjusted earnings per share was $1.47, which includes a $0.07 net tax benefit for the year. Excluding this net tax benefit of $0.07, our 2018 adjusted earnings per share grew 11 percent. 2019 adjusted EPS growth including the aforementioned 2018 net tax benefit is 8 percent and normalized for the 2018 net tax benefit is 13 percent. Full year 2018 net tax benefit of $0.07 includes our second quarter $0.06 benefit from settling the IRS Stipulation of Settled Issues for the 2001 through 2010 tax years, offset by a fourth quarter $0.05 charge for our tax reinvestment strategy. In addition, the net benefit includes a $0.06 benefit in the fourth quarter for the settlement with the IRS of our 2011 through 2013 tax years.


Dear Stockholders: Mike Mahoney, Chairman and CEO

Helped ~30 million patients ~36,000 employees Full-year sales: $10.735 billion Organic sales growth: 7%2 5-Year total stockholder return: 241%









Scientifichasgrownorganicsales2 at an averagerateof7percent.We’veimprovedadjustedoperatingmargin1380basispoints and used that to drive an average 14percentgrowth3 in adjusted earnings per share1overthefive-yearperiod. On 12/31/19,theclosingpriceofourcommonstockrepresentedafull-yearreturnof28percent,inlinewiththetotalreturnoftheS&P500index.Ourfive-andthree-yeartotalstockholderreturnsof241percent and109percent,respectively,morethandoubledthetotalreturnsoftheS&P500.


20192017 2018201620152014

$350

$100

0

350

1 Adjusted operating margin, adjusted earnings per share and related growth rates are non-GAAP measures that exclude the impacts of certain charges (credits) which may include amortization expense, goodwill and intangible asset impairment charges, acquisition/divestiture-related net charges and credits, restructuring and restructuring-related net charges and credits, litigation-related net charges and credits, investment impairment charges, pension termination charges, EU MDR implementation charges, debt extinguishment net charges and credits, deferred tax expenses (benefits) and discrete tax items; see non-GAAP reconciliations on pages 65-67. 2 Organic revenue growth rates are non-GAAP measures that exclude the impact of foreign currency fluctuations and the first 12 months of sales from acquisitions in the periods for which there are no prior period related net sales. Organic revenue growth also excludes the impact of the divestiture of our global embolic microspheres portfolio, a transaction entered into in connection with obtaining the antitrust clearances required to complete the acquisition of BTG plc (BTG); see non-GAAP reconciliations on pages 65-67. 3 Full year 2018 adjusted earnings per share was $1.47, which includes a $0.07 net tax benefit for the year. Excluding this net tax benefit of $0.07, our 2018 adjusted earnings per share grew 11 percent. 2019 adjusted EPS growth including the aforementioned 2018 net tax benefit is 8 percent and normalized for the 2018 net tax benefit is 13 percent. Full year 2018 net tax benefit of $0.07 includes our second quarter $0.06 benefit from settling the IRS Stipulation of Settled Issues for the 2001 through 2010 tax years, offset by a fourth quarter $0.05 charge for our tax reinvestment strategy. In addition, the net benefit includes a $0.06 benefit in the fourth quarter for the settlement with the IRS of our 2011 through 2013 tax years. 4 Operational revenue growth rates are non-GAAP measures that exclude the impact of foreign currency fluctuations; see non-GAAP reconciliations on pages 65-67. 5 We have three reportable segments comprised of Medical Surgical (MedSurg), Rhythm and Neuro, and Cardiovascular, which represent an aggregation of our operating segments that generate revenues from the sale of medical devices (Medical Devices). We have included BTG’s Interventional Medicine business in our Peripheral Interventions operating segment’s 2019 revenues from the date of acquisition. 6 Based on internal estimates. 7 We define Emerging Markets as the 20 countries that we believe have strong growth potential based on their economic conditions, healthcare sectors and our global capabilities. Periodically, we assess our list of Emerging Markets; effective January 1, 2019, we updated our list of Emerging Market countries. We have revised prior year amounts to the current year’s presentation. The revision had an immaterial impact on prior year Emerging Markets sales. 8 As part of our acquisition of BTG, we acquired a specialty pharmaceuticals business (Specialty Pharmaceuticals). Subsequent to acquisition, Specialty Pharmaceuticals is now a stand-alone operating segment presented alongside our Medical Device reportable segments. 9 Adjusted free cash flow is a non-GAAP measure that excludes from free cash flow the cash component of certain charges (credits) that are also excluded from adjusted net income as well as any cash tax benefits of such charges, as detailed below. In addition, we exclude payments or refunds that relate to resolving tax disputes related to prior periods. Free cash flow is a non-GAAP measure that excludes net purchases of property, plant and equipment from cash provided by (used for) operating activities on a GAAP basis. The GAAP measure that is most directly comparable to adjusted free cash flow and free cash flow is cash provided by (used for) operating activities on a GAAP basis. See non-GAAP reconciliations on pages 65-67.


Ourfull-yearsalesin2019were$10.735billion.Thisrepresents11.1percentopera-tionalrevenuegrowth4 and 7.3 percent organicrevenuegrowth2comparedto2018.Organicrevenuegrowthwas8.8percentinMedSurg,53.3percentinRhythmandNeuro5and9.3percentinCardiovas-cular.5Ourglobalperformancewasstrong,withallregionsdeliveringabove-marketgrowth.6TotalannualsalesfromEmergingMarkets7increased19.5percentonan operationalbasiscomparedto2018. Outsideofourthreereportablesegments,

SpecialtyPharmaceuticals8 generated revenueof$81millionsincetheclosing oftheBTGacquisitioninAugust2019. Thisbringsthefullyearpro-forma pharmaceuticalsalesto$250million.

Wealsodelivereda60basis-point improvementinadjustedoperating margin1andincreasedfull-yearadjustedearnings per share1to$1.58,up13percentovertheprioryear(normalizedforthe 7centnettaxbenefitin2018).3We generatedmorethan$2billionof

adjustedfreecashflow9whilecontinuingtoincreaseproductivity,reducecosts, andredirectsavingstohigh-growth technologies that strengthen our portfolioandcapabilitiesforthefuture.

Ourstrategyofcategoryleadershipin keymarketsandportfoliodiversificationintohighgrowthadjacenciesisworking.Weexpecttocontinuetoexpandour presenceinnewmarketsandregions andtomakeourtechnologiesaccessible tomorepeopleinneed.Ourgoalisto continue to execute against our strategic planobjectives,furtherincreaseour organicgrowthprofile,anddeliver top-tiersalesandadjustedearnings persharegrowthoverthenextfive years.Webelievethatthelong-term combinationofconsistent,above-marketrevenuegrowth,adjustedoperating marginexpansion,targeteddouble-digitadjustedearningspersharegrowth,andtheimprovedabilitytogenerate—andstrategicallydeploy—astrongfree

Comparison of 5-Year Cumulative Total Return*

Boston Scientific Corporation S&P Health Care Equipment S&P 500

* $100 invested on 12/31/14 in stock or index, including reinvestment of dividends. Fiscal year ending December 31.

© 2020 Standard & Poor’s, a division of S&P Global. All rights reserved.

2019 adjusted EPS growth: 14%1,3 85+ product launches EXALT™ Model D is the world's first and only single-use duodenoscope to be cleared by the FDA.

cashflowpositionBostonScientificto continue to drive stockholder value.

Investing for GrowthOur approach to innovation includes amixoforganicresearchprograms, collaborations,andstrategicinvestmentsandacquisitionsthatenrichthemedicalspecialtiesweserve.Ourproductsare usedtohelpdiagnoseortreatcomplex diseasesandconditionsacrossmultiplefields:cardiovascular,respiratory,digestive,neurological,urologicalandpelvichealth.Ourcategoryleadershipstrategytodeepenour portfolio in these areas is helping us createvalueforpatients,physiciansandpayers.Andit’senablingustogrowfasterthanthemarketsinwhichwecompete,6 andfasterthanmostofourpeers.By 2022,weexpectthatourinvestmentsintechnologydevelopmentandacquisitionswillallowustointroducesolutionsfor unmetclinicalneedsinadjacentmarketsthataccelerateourservedmarketgrowthratetoapproximately6percent.6










Innovative Technologies Solve Urgent Challenges Overthecourseof2019,weexecuted morethan85productlaunchesandreceivedseveralsignificantregulatoryclearances,includinginourEndoscopy, NeuromodulationandInterventional Cardiologybusinesses.

OurEndoscopybusinessintroducedtheEXALT™ModelD,theworld’sfirstand onlysingle-useduodenoscopetobeclearedbytheU.S.FoodandDrug Administration(FDA).Duodenoscopes,whichareusedduringendoscopic procedurestoexaminethepancreatic andbileducts,treatsevere,oftenlife-threatening,conditions.Scope cleaningandreprocessingarecomplexproceduresthatarevulnerableto manualerror.Accordingtoastudy mandatedbytheFDA,oneintwenty reusableduodenoscopesiscontaminated withdisease-causingpathogens.TheEXALT-DDuodenoscopewasgrantedBreakthroughDeviceDesignationby theFDA,aprogramthathelpspatientsreceivetimelyaccesstotechnologies thathavethepotentialtomore effectivelydiagnoseortreatlife- threateningorirreversiblydebilitatingdiseases or conditions.

10 1.5 Tesla MRI conditional when all conditions of use are met. 11 ACURATE neo™ Aortic Valve System is CE Marked. In the U.S., IDE device and not available for sale.


OurNeuromodulationbusinesslaunchedtheVercise™PrimaryCell(PC)andVerciseGevia™DeepBrainStimulation(DBS) SystemswiththeCartesia™DirectionalLead.ThenewsystemstreatthesymptomsofParkinson’sdiseasebydelivering preciselytargetedandpersonalized electricalstimulationinthebrainand aredesignedtoprovidesymptomreliefandbettercontrolofunwantedside effects.WealsoreceivedFDAapproval ofImageReady™MRIlabelingforthe VerciseGeviaDBSSystem,whichallows thedevicetobeusedinafull-body magneticresonanceimaging(MRI) environment.10

TheapprovaloftheLOTUSEdge™ Aortic ValveSystemaddedtooursuiteof Structural Heart product solutions. These nowincludetheSENTINEL™Cerebral ProtectionSystemandtheWATCHMAN™Left Atrial Appendage Closure Device as wellastheACURATEneo™AorticValveSystem.11TheLOTUSEdgevalvesystem istheonlyfullyrepositionablevalve systemonthemarket;itisapproved forpatientswithsevereaorticstenosis whoareconsideredathighriskforsurgicalvalvereplacementthroughopenheartsurgery.TheSENTINEL™CerebralProtection

invasivedeviceusedtoimprovephysicalfunction and reduce pain in patients withmoderatelumbarspinalstenosis. Thisadditiontoourpainmanagementportfolio—nowcomposedoftheSpectra WaveWriter™SpinalCordStimulator System,theVertiflex®procedureand radiofrequencyablationtherapy—givesphysiciansanothernon-opioidpain managementsolutionthatcanhelpimprovequalityoflifeforthegrowingnumberofpatientssufferingfrom chronicpain.Allofourevidence-basedsolutions are helping clinicians provide personalizedtreatmentsalongthepaincarecontinuum.

System,theonlydeviceclearedbythe FDA to protect patients against the risk of stroke during transcatheter aortic heart valvereplacement(TAVR),isnowused inanestimated20percentofallTAVR proceduresintheUnitedStates.

Acquisitions to Strengthen Our FutureIn2019,wemadetwostrategicinvestmentstosupportourcategoryleadershipstrategyandpresenceinfastergrowingmarkets.

WeacquiredBTGplc.,addingtherapeutictechnologiesforpatientswithliver andkidneycancerstoourinterventional oncologyportfolio.Theacquisition also gives us a vascular portfolio for thetreatmentofdeepveinthrombosis, pulmonaryembolism,deepvenous obstructionandsuperficialvenous disease.Wearenowabletosupport physicianswhotreatsomeofthemostchallengingdiseaseswithastrengthenedcommercialinfrastructureandofferourcustomerscomprehensivetechnologiesbackedbyclinicalevidence.

InNeuromodulation,wecompleted theacquisitionofVertiflex,Inc.,which developedtheSuperion®Indirect DecompressionSystem,aminimally

LOTUS Edge™ is the only fully repositionable valve system on the market. SENTINEL™ Cerebral Protection System is used in 20% of all U.S. TAVR procedures.









“ In 2019, we invested more than $1 billion in research and development to fuel our pipeline; and nearly 5,000 patients participated in more than 100 global clinical trials with Boston Scientific devices.”


Collaborating to Advance ScienceAcrossourbusinesses,weinvested morethan$1billioninresearchand developmentin2019tofuelourpipelineandcreatevalueforourcustomersand thepatientswhomweservetogether.

To accelerate the pace of discoveries andbringnewtreatmentstopatients, collaborationiskey.AtourglobaldesigncentersintheUnitedStates,CostaRica,Ireland,India,China,PuertoRicoandtheUnitedKingdom,wetakeacollaborativeapproachtoresearchanddevelopment. Clinicians,researchersandindustry worksidebyside,evaluatingideas, developingprototypes,andconductingfeasibilitystudies.

In2019,MayoClinicandBostonScientificannouncedMotionMedical,anewjointinnovationacceleratorthataimsto acceleratethedevelopmentofminimallyinvasive technologies for interventional cardiology,heartrhythmmanagement, endoscopy,neuromodulationandurology.Indoingso,ourorganizationswillnowsharecertainintellectualpropertyand worktogethertorapidlydevelopmedicaldevicestoaddressunmetclinicalneeds.

Wealsomaintainedastrongbaseofclinicalresearchtosupportthesafetyandefficacyofourdevices,withdatagathered throughbenchtesting,randomizedcontrolledtrials,andongoingreal-worldevidence to support sustaining innovation aswellasnewproductapprovals.In2019,nearly5,000patientsparticipatedinmorethan100globalclinicaltrialswithBostonScientificdevices.

Trialhighlightsinclude: TheRANGERIISFAtrialandtheIMPERIALtrialsstrengthenthegrowingbodyof evidencesupportingthesafety,efficacy anddurabilityofourRanger™Drug- CoatedBalloon(DCB)andEluvia™Drug-ElutingVascularStent(DES)forpatientswithperipheralarterydisease.

$1+ billion invested in research and development The EMBLEM™ S-ICD System has been implanted in nearly 75,000 patients worldwide.









North AmericaMaple Grove, USASt. Paul, USAValencia, USA

EuropeParis, FranceRatingen, GermanyMilan, Italy Warsaw, PolandMadrid, Spain

AsiaBeijing, China Chengdu, ChinaShanghai, ChinaGurgaon, India Miyazaki, JapanTokyo, Japan

AfricaJohannesburg, South Africa

“ At our global design centers in the United States, Costa Rica, Ireland, India, China, Puerto Rico and the United Kingdom, we take a collaborative approach to research and development. Clinicians, researchers and industry work side by side, evaluating ideas, developing prototypes, and conducting feasibility studies.”

Expanding Our Footprint Through Medical Education

Boston Scientific provides local training programs through our 15 Institutes for Advancing Science in the Americas, Africa, Asia and Europe.



TheUNTOUCHEDstudyconfirmedthevalueofourEMBLEM™S-ICDSystemforabroadgroupofICD-indicatedpatients,enablingthemtoavoidthelong-termcomplicationsassociatedwithtrans-venousICDleads.ThestudyevaluatedthesafetyandefficacyoftheEMBLEM™S-ICDSystem,adevicethathas beenimplantedinnearly75,000 patientsworldwide.

TheAF-FICIENTIstudyshowedpositive safetyandefficacydataforthe LUMINIZE™RFBalloonCatheter,oursingle-shotablationtechnologyfor theisolationofpulmonaryveins(PV)whentreatingpatientswithatrial fibrillation(AF).

ArandomizedclinicaltrialwithourRezūm™WaterVaporTherapy,a minimallyinvasivetreatmentforbenignprostatichyperplasia(BPH),demonstrated thatfouryearsaftertreatment,thedeviceprovidesdurableresultsandpreservessexualfunction.Morethan35,000menhavebeensuccessfullytreatedwiththeRezūmSystem.Andwehaveworkedwithmajorinsuranceproviderstoextendcoverageoftheprocedure,providingevenmoremenwithaccesstothis transformativetechnology.

TheVIRTUStrialwith12-month datademonstratedthatpatients treatedwiththeVICIVENOUSSTENT®Systemforiliacandfemoralvein obstructionsexhibitahighrateof open target lesions.

Medicaleducationisalsoavitalcomponent of safe procedure adoption and our collaborationwithphysicians.Wecontinue toprovidelocaltrainingprogramsthroughour15InstitutesforAdvancingScienceintheAmericas,Africa,AsiaandEurope.We recentlycompletedthecenterinChengdu,Chinathatwillexpandourfootprintandenableustotrainthousandsofdoctors inCentralandWesternChina.

TheEVOLVEShortDAPT(dualantiplatelettherapy)studywithourSYNERGY™Bio-absorbablePolymerStentdemonstratedalowrateofadverseeventsforpatientsatahighriskforbleedingwhostopDAPTatthreemonths.Thestudyevaluated abbreviatedantiplatelettherapyforpatientsathighriskforbleedingafterundergoingpercutaneouscoronary intervention.Theresultsexpandthebodyof evidence supporting the excellent clinicaloutcomesofourSYNERGYBPStent.Weplantosubmitthesedatatoregulatoryauthoritiestosupportan indicationforuseinpatientswho are at a high risk of experiencing a bleedingevent.

TheOPTIONtrialhasthepotentialtoexpandthenumberofpatientswith atrialfibrillationwhocanreceivealeftatrialappendageclosure(LAAC)asanalternative to lifelong anticoagulants — andtheirpotentialsideeffects.Thetrialcomparesthesafetyandeffectiveness ofthenext-generationWATCHMANFLX™leftatrialappendageclosureplatform tofirst-lineoralanticoagulantsfor strokeriskreductioninpatientswithnon-valvularatrialfibrillation(AF)whoundergoacardiacablationprocedure.

35,000+ men with BPH have been successfully treated with the Rezūm™ System 15 Institutes for Advancing Science worldwide









" As we move into the next decade, we face challenges from the growing burden of chronic conditions among an aging population, the demands of value-based care and new, disruptive competitors. These trends also represent opportunities, and I am energized and inspired by the significant advancements we have made and will continue to make, and by the lives that have been extended or enhanced because of our products."



Fosteringdiversityandinclusionintheworkplacerequiresadeliberateand consistenteffortaswellasawillingness toengageindifficultconversationsandlearnfromthem.OurGlobalCouncilforInclusionandmorethan4,500employeesfromnineEmployeeResourceGroupsareattheheartofthiswork.Theyprovideforumsforustolearnfromoneanother,celebrateourdiversityanddevelop inclusive leadership skills.

Workinginhealthcaregivesusthe privilege to help advance science and improvepatientoutcomes.Thatprivilegecomeswitharesponsibilitytoworkin asustainablewaythatenrichesour communities.We’vesetaggressive environmentalgoalstodoourpart.In 2019,wecontinuedourpushtoward environmentalimpact.Byyearend,

wereducedourgreenhousegas emissions47percentanddecreased waterconsumption30percentrelative toour2009measurementbaseline.OurHerediaandCoyol,CostaRicasitesarealreadycarbon-neutral,andweareon trackwithourlonger-termgoalsofreaching100percentrenewableenergyusageby2024andbeingcarbonneutralinallourmanufacturingandkeydistributionsitesby2030.Duringthepasttwoyears,weincreasedthenumberofpatientswe serveby20percentwhileatthesame timereducingourcarbonfootprintby 11percentatthesesites.

I’mproudoftheprogresswearemaking.OuremployeeshavemadeBoston Scientificanadmiredcompanywith numerousrecognitions,includingbeingnamedamongFORBES/JUSTCapital100MostJUSTCompanies,Newsweek’s America’sMostResponsibleCompanies,FORTUNEWorld’sMostAdmired Companies,Glassdoor’sEmployees’ ChoiceforBestPlacestoWorkanda DerwentTop100GlobalInnovator.

Looking AheadOurteamandtechnologypipeline haveneverbeenstronger,andIremainconfidentinourstrategyandabilitytoaddressevolvingcustomerneedsin themarketsinwhichwecompete.We anticipatecontinuedgrowthacross mostofourbusinessesandregions basedonthestrengthanddiversity of our portfolio and our talented and engagedemployees.

OnbehalfofallofusatBostonScientific, IwanttothankourBoardofDirectors fortheirservice.Ialsothankyou,our stockholders,foryourcontinuedsupport,andouremployeesfortheirunwaveringcommitmenttoourmissionandvalues. Ilookforwardtoworkingtogetherto makeevengreatercontributionsto advancescienceforlifeintheyear and decade ahead.

Sincerely,

MikeMahoney Chairman,Presidentand ChiefExecutiveOfficerMarch10,2020

People and CitizenshipDeliveringhighperformancerequires excellenceacrossouroperations,and weareastrongerandmoreinnovativecompanywhenwecultivateadiverseandinclusiveworkplacethatreflectsthepatients,customersandcommunitiesweserve.In2019,wemadestrongprogresstowardourdiversityandinclusiongoalstoincreasetherepresentationofwomenandmulticulturaltalent12inmid-manage-mentroles.By2023,ourgoalistoincreaserepresentationofthesegroupsbythreepercentagepoints.Payequityhasalsolongbeenafocus.Anindependentanalysis13 ofemployeepayequityshowedthat ourglobalworkforcehadalessthan 1percentstatisticaldifferenceinpay along gender lines.

During the past two years, we increased the number of patients we serve by 20% while at the same time reducing our carbon footprint by 11%.









12 In the U.S. and Puerto Rico, defined as African American/Black, Asian, Hispanic/Latino, American Indian/Alaska Native, Native Hawaiian/Other Pacific Islander, and two or more races. Excludes any U.S. Puerto Rico employees where the ethnicity is “Unallocated.” 13 Independent pay equity analysis conducted by Resolution Economics, LLC.


“ Delivering high performance requires excellence across our operations, and we are a stronger and more innovative company when we cultivate a diverse and inclusive workplace that reflects the patients, customers and communities we serve.”


11%8%8%

0 2 4 6 8 10 12

201920182017

7%7%7%

Percent of Reported Operational Consolidated 2019 Sales by Region (dollars in millions) Sales Growth4 Net Sales (%)

U.S. $6,097 10.1% 56.8%EMEA(Europe,MiddleEastandAfrica) 2,264 9.4% 21.1%APAC(Asia-Pacific) 1,898 12.3% 17.7%LACA(LatinAmericaandCanada) 395 7.3% 3.7%

Medical Devices5 10,654 10.2% 99.2%

Specialty Pharmaceuticals8 81 n/a 0.8%

Net Sales $10,735 11.1% 100.0%

Percent of Reported Operational Consolidated 2019 Sales by Product Category (dollars in millions) Sales Growth4 Net Sales (%)

MedSurg Endoscopy $1,894 9.2% 17.6% UrologyandPelvicHealth 1,413 14.7% 13.2%

Rhythm and Neuro CardiacRhythmManagement 1,939 1.2% 18.1% Electrophysiology 329 7.5% 3.1% Neuromodulation 873 13.1% 8.1%

Cardiovascular InterventionalCardiology 2,816 11.0% 26.2% PeripheralInterventions 1,392 19.1% 13.0%

Medical Devices5 10,654 10.2% 99.2%

Specialty Pharmaceuticals8 81 n/a 0.8%

Net Sales $10,735 11.1% 100.0%

1 Adjusted operating margin, adjusted earnings per share and related growth rates are non-GAAP measures that exclude the impacts of certain charges (credits) which may include amortization expense, goodwill and intangible asset impairment charges, acquisition/divestiture- related net charges and credits, restructuring and restructuring-related net charges and credits, litigation-related net charges and credits, investment impairment charges, pension termination charges, EU MDR implementation charges, debt extinguishment net charges and credits, deferred tax expenses (benefits) and discrete tax items; see non-GAAP reconciliations on pages 65-67.

2 Organic revenue growth rates are non-GAAP measures that exclude the impact of foreign currency fluctuations and the first 12 months of sales from acquisitions in the periods for which there are no prior period related net sales. Organic revenue growth also excludes the impact of the divestiture of our global embolic microspheres portfolio, a transaction entered into in connection with obtaining the antitrust clearances required to complete the acquisition of BTG plc (BTG); see non-GAAP reconciliations on pages 65-67.

3 Full year 2018 adjusted earnings per share was $1.47, which includes a $0.07 net tax benefit for the year. Excluding this net tax benefit of $0.07, our 2018 adjusted earnings per share grew 11 percent. 2019 adjusted EPS growth including the aforementioned 2018 net tax benefit is 8 percent and normalized for the 2018 net tax benefit is 13 percent. Full year 2018 net tax benefit of $0.07 includes our second quarter $0.06 benefit from settling the IRS Stipulation of Settled Issues for the 2001 through 2010 tax years, offset by a fourth quarter $0.05 charge for our tax reinvestment strategy. In addition, the net benefit includes a $0.06 benefit in the fourth quarter for the settlement with the IRS of our 2011 through 2013 tax years.

4 Operational revenue growth rates are non-GAAP measures that exclude the impact of foreign currency fluctuations; see non-GAAP reconciliations on pages 65-67.

5 We have three reportable segments comprised of Medical Surgical (MedSurg), Rhythm and Neuro, and Cardiovascular, which represent an aggregation of our operating segments that generate revenues from the sale of medical devices (Medical Devices). We have included BTG’s Interventional Medicine business in our Peripheral Interventions operating segment’s 2019 revenues from the date of acquisition.

8 As part of our acquisition of BTG, we acquired a specialty pharmaceu-ticals business (Specialty Pharmaceuticals). Subsequent to acquisition, Specialty Pharmaceuticals is now a stand-alone operating segment presented alongside our Medical Device reportable segments.

Percentages are calculated using unrounded numbers and may not calculate precisely due to rounding. Amounts may not add due to rounding.










Operational Revenue Growth 2,4

Operational revenue growth Organic revenue growth

Adjusted earnings per share growth1

Adjusted earnings per share growth, excluding 2018 net tax benefit3

Adjusted Operating Margin1 Adjusted Earnings Per Share Growth1,3

0 20

201920182017

13%11%

8%17%13%

0 5 10 15 20 25201920182017

26.1%25.5%

25%










Every day, Boston Scientific is... focusing on our mission.We are dedicated to transforming lives through innovative medical solutions that improve the health of patients around the world.

Our work is guided by core values that define Boston Scientific culture and empower our employees:

CaringWeactwithintegrityandcompassion tosupportpatients,customers,our communitiesandeachother.

Diversity Weembracediversityandvalueuniquetalents,ideasandexperiencesofour employees.

Global Collaboration Weworkcollaborativelytopursueglobal opportunities that extend the reach ofourmedicalsolutions.

High Performance Westriveforhighperformancetobenefitourpatients,cliniciansandstockholders.

Meaningful Innovation Wefosteranenvironmentofcreativitytotransformnewideasintobreakthroughservices and solutions that create value forpatients,customersandemployees.

Winning Spirit Weadapttochangeandactwithspeed,agilityandaccountabilitytofurther improvepatientcare.



Feature PatientHighlight

A Message toOur Stockholders

FinancialHighlights

Our Mission andCore Values

Boston Scientificat a Glance

Boston Scientificby the Numbers

Corporate SocialResponsibility

Our Patients Our People Our Planet Our Practices Non-GAAPReconciliations

Boston Scientific transforms lives through innovative medical solutions thatimprove the health of patients around the world. As a global medicaltechnology leader for nearly 40 years, we advance science for life byproviding a broad range of high performance solutions that address unmetpatient needs and reduce the cost of health care.

Neuromodulation: Electronic implantable technologies that help patientsmanage debilitating chronic pain and neurological conditions

Cardiac Rhythm Management: Technologies that treat irregular heart rhythmsand heart failure and help protect against sudden cardiac arrest

Electrophysiology: A broad range of mapping and treatment technologies fordiagnosing and treating heart rhythm disorders

Interventional Cardiology: Minimally invasive innovations that help improve thelives of patients living with heart and vascular conditions

Endoscopy: Minimally invasive devices for diagnosing and treating gastrointestinaland pulmonary conditions

Peripheral Interventions: Devices for diagnosis and minimally invasive treatments ofperipheral vascular disease and cancer

Urology and Pelvic Health: Solutions for urological, urogynecological andgynecological diseases

As part of our acquisition of BTG, we acquired the Specialty Pharmaceuticals business,which is a stand-alone operating segment.


41,000+ employee volunteer hours

Boston Scientific by the Numbers*

~30 million patients served

Top30 America’s Most JUST Companies** Reduced greenhouse

gas emissions by

76,000+ tonnes***

Recycled

8,900+ tonnes of solid waste

~36,000 employees in 100+ countries









99%+gender pay equity

Carbon neutrality in manufacturing and key distribution sites for all products by 2030

$85 million+ educational and charitable giving and medical research

~ $1 billion invested in research and development

$10.7 billion in full-year sales

* All figures reflect 2019 results. ** Forbes and JUST Capital JUST 100 rankings *** Compared to 2009 baseline


Corporate Social Responsibility at Boston Scientific









AtBostonScientific,weareunitedbyadeepcaringforhumanlife.Ourwork inhealthcarecomeswithaprofoundresponsibilitytothepeoplearoundus.Guidedbyourcorevalues,weare committedtoshapingabetterfuture forpatients,customers,employeesas wellasthecommunitiesinwhichwe liveandwork.Ourteamsarededicatedtotransforminglivesthroughinnovativemedicalsolutionsthatimprovethehealthofpatientsaroundtheglobe—while alsomakingmeasurablecontributions totheworldweallshare.

Engaging with Stakeholders Inkeepingwithourvalues,weactwithintegrityinouroperationalprocesses andallofourbusinessrelationships.Throughoutthecompany,wearefocusedonourobligationsasacorporatecitizen.Theseresponsibilitiesincludecontinuallyworkingtobetterunderstandand anticipatethecompany’senvironmental, socialandeconomicimpacts.

Acompany-widefocusonCorporate SocialResponsibility(CSR)isanessentialaspectofourcitizenship.OurCSR strategyandpracticesareinformedby conversationswithdiversestakeholdersinsideandoutsidethecompany— locally,nationallyandglobally.Inour

collaborationsandotherbusiness relationships,weworkwithorganizationswhoshareourcommitmenttothe peopleweserve.

Our ApproachToensureoureffortsarealignedwiththeUnitedNationsSustainableDevelopmentGoals(SDGs),in2017wecompletedabaselinematerialityassessmentinaccor-dancewiththeinternationallyaccreditedGlobalReportingInitiative(GRI)guidelines.TheassessmentidentifiedCSRissuesofgreatestimportancetoBostonScientificandourstakeholders.Wedefinetheseissuesasmaterialaspects.

Ourmaterialaspectsalignwith10ofthe17SDGswherewebelievewecanmakeameaningfuldifference.OurteamstrackhowouractivitiesintersectwiththeSDGsandhowwecanmosteffectivelyjoinwithotherstocontributetothesegoals.In2019,weincreasedthescopeofourCSRmetricsanddisclosures,andwemadeitaprioritytoreportattheGRIComprehensivelevel by2024,ifnotsooner.

Boston Scientific employees participating in Volunteer Day in Minnesota.


Asaglobalmedicaldevicemanufacturer,ourworkisnaturallyfocused onhealthandwell-being.In2019,ourportfolioofinnovativeproductsandsolutionshelpedmorethan30millionpatientslivebetterandlongerlives. Wecontinuetomakeinvestmentsinresearchanddevelopmentand clinicaltrialstodevelopnewtechnologiesandbreakthroughtherapies. Ourpatient-centricfocussupportsexpandedaccesstomedicalcarefor underservedpopulationsaroundtheworld.Weinvestsignificantlyinthewell-beingofouremployeesandtheirfamilies,andwesupportthe communitieswhereweworkandlive.









Boston Scientific Supports the SDGs

Toensurewedesign,test,manufactureanddistributesafeandeffective devices,qualityisintegratedintoeveryaspectandstageofourwork.Wesupportinitiativestoreducewastethroughsustainablepackaging,recycling,reuseandinventorymanagement.Wealsomaintainstrategicpartnerships,manywithsmallanddiversesuppliers.Thesepartnershipshelpusdeliver improvedvaluetoourcustomers,andtheysupporteconomicdevelopmentandsustainableproductioninthecommunitieswhereweliveandwork.

Ourplanetisfacingsignificantchallenges,andBostonScientificiscommittedtoidentifyingandmitigatingriskstotheclimateandenvironment.Todothis,andcontributetoSDGs7and13,wehaveestablishedaggressivetargets,suchasourgoaltobecarbonneutralby2030atallkeymanufacturinganddistributionsites.Wearealsofocusedonmovingtorenewableenergysourcesandreducingourenvironmentalimpact.Wemonitorourprogressthroughanestablishedenergymanagementsystem.

SDG5andSDG10relatedirectlytoourcorediversityvalue,whichwe defineasinclusion,equityandopportunityforall.Byembracinguniquebackgroundsandperspectives,wecreateamorerewardingplacetowork.OurDiversityandInclusion(D&I)effortsfocusonfourstrategicpillars: career,culture,commerceandcommunity.In2019,wemadestrong progressinachievingour“10/20/40by2020”objectivesaimedatreshapingthecompany’scoremid-levelemployeebase,andwecontinuetoset highergoals.Weareanequalopportunityemployer,committedto deliveringfairandequitablecompensationandbenefitsprograms.WithourClosetheGapprogram,wearehelpingtoaddresshealthinequities,increasingdiversepatientenrollmentinclinicaltrialsandelevatingtheroleoffemalephysiciansinhealthcare.

TheBostonScientificcaringvalueguideshowweengagewithpatients, worktogetherascolleaguesandinvestinthewell-beingofour communities.OurEDUCAREprogramoffersavarietyoftrainingprograms tohelphealthcareprovidersdeliverthebestpatientcarepossible.We alsosupportfuturediversetalentwitheducationandSTEMprogramming forK-12studentsaroundtheworld.Thecompanyinvestsintrainingand continuingeducationforouremployeesandensuresapositivework environmentthroughglobalenvironmentalhealthandsafetypolicies. Ourfacilitiesreflectthepriorityweplaceonagileworkspacesthatofferflexibility.

WearecommittedtoSDG16anddoingbusinesswithintegrityandhonesty.Ourteamsresponsiblyresearch,develop,manufactureanddeliverour productswithacommitmenttostrongcorporategovernance,impeccableethicsandregulatorycompliance.TheBostonScientificCodeofConductisthefoundationforourpoliciesandmustberead,understoodandfollowedbyeveryemployee.Ourpoliciesandpracticesreflectourbeliefinand supportforallfundamentalhumanrights.

https://www.un.org/sustainabledevelopment/sustainable-development-goals/


Owning and Managing CSROurpeopleinmorethan100countriesworkwithanawarenessoftheworld’smostpressingchallenges,includinginequality,economicdisparity,climatechangeandenvironmentalprotection.Theireffortstohelpaddresstheseissuesaresupportedbyourcross-functional CSRCouncil,EnvironmentalHealthandSafety(EH&S)policiesandprogramsandaGlobalCouncilforInclusion,alongwithlocal,regionalandnationalemployee andcommunityprograms.

TheCSRCouncilincludessubjectmatterexpertsthroughoutthecompanywho helpdefineCSRstrategyandensure accountability.Anexecutivesteering committeeoverseestheCounciland championssustainablepracticesacross thebusiness.Withinthisframework, everyoneinthecompanycontributes tooursocialresponsibility.

Our CSR PerformanceWeholdourselvesaccountablefor providing updates and data related to ourCSRperformance,andweshare thisinformationthroughseveral communicationschannels,includingthisreport and www.bostonscientific.com. Eachyear,wereportthecompany’s impactontheenvironmentasdefined bytheCarbonDisclosureProject,and weparticipateinseveralwidely recognizedenvironmental,social andgovernanceratingsurveys.

Thisreporthasbeenpreparedin accordancewiththeGRIguidelines. Unlessotherwiseindicated,datain thisreportcoverstheperiodbetween January1,2019,andDecember31,2019.









Guided by our core values, we are committed to shaping a better future for patients, customers, employees as well as the communities in which we live and work. Our teams are dedicated to transforming lives through innovative medical solutions that improve the health of patients around the globe — while also making measurable contributions to the world we all share.

Mike Mahoney, Chairman and CEO, attending an event at the Berkshire Partners Blue Hill Boys & Girls Club, where Boston Scientific teamed up with the Boston Celtics to renovate a pre-teen room.

Company Leadership and Corporate Social Responsibility

The JUST 100: ForbesandJUSTCapitalrankedBostonScientificinthetop30ofAmerica'sMostJUSTCompanies.

America's Most Responsible Companies: NewsweekandStatistarankedBostonScientific #48initsfirstrankingofthemostresponsiblecompaniesinAmerica.

World's Most Admired Companies: BostonScientificwasagainnamedaFORTUNE World'sMostAdmiredcompany,ranking#2intheMedicalProductsandEquipment industrycategory.


Every day, Boston Scientific is... transforming the lives of our patients.









Our Patients17 Our Patients

21 PromotingHealthEquitywith ClosetheGap

The patient featured on the cover, German pole vaulter Katharina Bauer, strikes a yoga pose atop Lion's Head, a mountain overlooking Cape Town, South Africa.


Weareproudthatin 2019ourdevicesandtherapieshelpedmorethan30millionpatientslivelongerandbetterlives. Their stories inspire ustodomore.Aswe focus on solving the healthcare challenges thatmattermost,we are also expanding oureffortstoincreasehealthcare access and help educate people on disease prevention.









Allen Brady (Pensacola, Florida, U.S.) Whenherhusband,Allen,couldn’tfinish aroundofgolfanymore,DianneBradyknewthatsomethingwaswrong. The90-year-olddecoratedwarveteranhadnoplanstoslowdownbut wasregularlygettingoutofbreath.Allenlaterlearnedfromhis cardiologistthathewasexperiencingaorticstenosisandneededa valve change. He received the LOTUSEdge™AorticValveSystem and wasabletoreturntoplayinggolfandenjoyingtimewithDianne.

Valentina Arango (Bogota, Colombia) Formonths,Valentinawasfeelingillandthecausecouldnotbedetermined. Eventually,doctorsdiscoveredthatshepotentiallyhad cancerousliverfibrosisandstonesinherintrahepatic duct,whichdrainsbilefromtheliver.Herdoctorsused SpyGlass™DSDirect VisualizationSystem in aproceduretodestroythe stonesandcollectabiopsy totestforcancer—which wasnegative.Valentina returned to her studies and normallife,feelinghealthy andfreeofworry.

Our Patients

“ I haven’t felt anything in my heart since that valve went in there, other than my body works better. It’s like getting a new lease on life.”

“ Living with fear is difficult… Now I can live without fear of not having a future thanks to Boston Scientific.”

https://www.bostonscientific.com/en-US/products/transcatheter-heart-valve/tavr-valve-system.html

https://www.bostonscientific.com/en-US/products/direct-visualization-systems/spyglass-ds-direct-visualization-system.html

https://www.bostonscientific.com/en-US/products/direct-visualization-systems/spyglass-ds-direct-visualization-system.html










Gregory Gaddy (Memphis, Tennessee, U.S.) After falling fromaladderwhileworkinginhisyard,Gregorywasleftwithchronicpainfromhisinjuries.Aftermorethan10years of strugglingwithpain management,hechoseto have aBostonScientificspinal

cord deviceimplanted.TheSCSgreatlyreducedGregory'spainandallowedhimtoreturntotendinghisgardenandachievinghisgoalofwinning"YardoftheMonth"inhiscommunity.

HeartLogic™ Heart Failure Diagnostic

The HeartLogic™ Heart Failure Diagnostic is the first and only heart failure diagnostic tool proven to detect 70 percent of heart failure events several weeks in advance, potentially reducing further hospitalization for patients with heart failure. This diagnostic tool is featured in the Boston Scientific Resonate™ family of cardiac resynchronization therapy defibrillator (CRT-D) and implantable cardioverter defibrillator (ICD) devices.

Symbols representing sensors from the Heartlogic heart failure diagnostic tool.

Kathryn Grosshans (Yorktown, Virginia, U.S.) Inherearlyteenageyears,Kathryn’s occasional legpainwasattributedtoherheavyfigureskatingtraining schedule.Butbythetimeshewasaseniorinhighschool,Kathryn’spain wassodebilitatingthatshecouldbarelywalk.Avascularspecialist diagnosedherwithMay-Thurnersyndromeandrecommendedthat shereceiveastenttorelieveacompressedvein.Kathrynwas implantedwiththe VICI Venous Stent™ Systeminasame-day outpatientprocedureandimmediatelyexperienceda difference.Ayearlater,shedecidedtotrainforher firstmarathon,whichshecompletedfreeofpain.

“ Because of the stent, I can continue to do all of the things I want to do and accomplish dreams that I didn’t think I would be able to before.”

“ SCS has given me my life back and I'm able to do things that I love.”

https://www.bostonscientific.com/en-US/medical-specialties/electrophysiology/heartlogic-heart-failure-diagnostic.html?cid=ps293216&gclid=EAIaIQobChMI14HrqMm76AIVRZyzCh0-UAu9EAAYASAAEgJDy_D_BwE

https://www.bostonscientific.com/en-US/medical-specialties/electrophysiology/heartlogic-heart-failure-diagnostic.html?cid=ps293216&gclid=EAIaIQobChMI14HrqMm76AIVRZyzCh0-UAu9EAAYASAAEgJDy_D_BwE

https://www.bostonscientific.com/en-US/products/stents--vascular/vici-venous-stent-system.html


Eluvia™ Drug-Eluting Vascular Stent System

TheEluvia™Drug-ElutingVascularStentSystem is a controlled drug delivery system designed and engineered to solve the unique challenge of restenosis in the superficial femoral artery (SFA), the main artery leading to the lower limbs.









“ Tom and I are both very excited to get our lives back.”

Lisa Griener (Pittsburgh, Pennsylvania, U.S.) Meetingherhusband,Tom, wasanexcitingnewchapterinlife—but10monthsaftertheir wedding,LisawasdiagnosedwithParkinson’sdisease.Tomanage herParkinson’s,Lisatookupto13pillsaday,buthermovements weresouncontrollablethatitwasdifficultforhertoworkor socialize.AfterreceivingtheBostonScientificVercise™DBSSystem, Lisa’stremorshaveminimizedandshehasregainedcontrolof hermovements—allowinghertoreducehermedications.Most importantly,LisaandTomareenjoyingtheirlifetogetheragainand focusingontheyearsahead.

Marjorie Giovannoni (Coupeville, Washington, U.S.) After a hemorrhagicstroke,Marjorie wasparalyzedonherentire rightside.Astimewenton,she facedadifficultchoice:goback onbloodthinnerstoaddressher highriskofstrokeoravoidthem, becauseherconditionmadefallsandbleedingmorelikely.MarjorieelectedtobeimplantedwithaWATCHMAN™LeftAtrialAppendageClosure(LAAC)Deviceasanalternative,whichhasgivenherpeaceofmind.

“ It is the best feeling to know the WATCHMAN is in there and going to watch over me.”

https://www.bostonscientific.com/en-US/medical-specialties/vascular-surgery/drug-eluting-therapies.html?utm_source=google&utm_medium=search-brand_paid&utm_campaign=pi-general-us-branded_broad-general&utm_content=none-none-none-eluvia&keyword=boston_scientific_eluvia&cid=ps1001049&gclid=EAIaIQobChMIl7KZwcm76AIVBL3ICh1zvgiZEAAYASAAEgIfl_D_BwE

https://www.bostonscientific.com/en-US/medical-specialties/vascular-surgery/drug-eluting-therapies.html?utm_source=google&utm_medium=search-brand_paid&utm_campaign=pi-general-us-branded_broad-general&utm_content=none-none-none-eluvia&keyword=boston_scientific_eluvia&cid=ps1001049&gclid=EAIaIQobChMIl7KZwcm76AIVBL3ICh1zvgiZEAAYASAAEgIfl_D_BwE

https://www.bostonscientific.com/en-US/products/deep-brain-stimulation-systems/vercise-gevia-tm-dbs-system.html

https://www.bostonscientific.com/en-US/products/laac-system/watchman.html

https://www.bostonscientific.com/en-US/products/laac-system/watchman.html










Nicole Leon (Chicago, Illinois, U.S.) At32,Nicolewasdiagnosedwithahepatocellularlivertumor.Shewastoldthathertumorwasinoperableandthatshehadsixmonthstolive. Amulti-disciplinaryteamattheUniversityofChicagoMedicine’sLiver TumorProgramusedtheTheraSphere™Y-90GlassMicrospheres todeliveratreatmentcalledradiationembolization,whichreduced thesizeofthetumorsoitcouldbesurgicallyremoved.Today, Nicolehasnearly100percentofherlivervolumebackandnormal liverfunction.Nicoleisnowthreeyearscancer-free,marriedandhas ahealthybabyboywhomshenamedafteroneofthedoctorswho helped save her life.

Alex Lamb (Smalley, Derbyshire, England) Notyourtypical81-year-old,Alexhasaregularregimenofkarate,yogaand5-kilometerdailyruns.Whenhewasdiagnosedwithadvancedprostatecancer,hisdoctorrecommendedradiationtherapy,whichisassociatedwithunpleasantsideeffectssuchas rectalpainanddiarrhea.Alex’sdoctorsusedourSpaceOAR™ Hydrogel,whichprotectsorganssuchastherectumfrom radiationexposureduringtreatmentandminimizes sideeffects.Thetreatmentwassuccessful, andhisProstate-SpecificAntigen (PSA)levelsarenowundetectable. Alexwasrunningtwodaysafter his procedure and has nowresumedhisfull workoutroutine.

EXALT™ Model D Duodenoscope

In December 2019, the EXALT™ Model D, the world’s first and only single-use duodenoscope, was cleared by the U.S. FDA, eliminating the need for reprocessing and repairs. The EXALT Model D supports physicians in their mission to deliver the highest quality patient care because they can now use a new, sterile device for every procedure.

“ I have a second chance at life — to get married and start a family and move on.”

“ It was vitally important for me to get running again because that really is my whole life.”

https://www.bostonscientific.com/en-US/products/cancer-therapies/therasphere-y90-glass-microspheres.html

https://www.spaceoar.com

https://www.spaceoar.com

https://news.bostonscientific.com/2019-12-13-Boston-Scientific-Receives-FDA-Clearance-For-Worlds-First-Single-Use-Duodenoscope-EXALT-TM-Model-D










Massachusetts Conference for Women: Personal Brand, Heart Health and Exercise Forthefifthconsecutiveyear,BostonScientificco-sponsoredtheannualMassachusettsConferenceforWomeninBoston,aprogramdrawingmorethan13,000attendees. Approximately240employeesattended,andBostonScientificwomenleadersserved aspanelistsaswellasguestspeakers.TheClosetheGapteamcollaboratedwith WomenHeart,apatientadvocacygroupfocusedonheartdiseaseinwomen,toengageconferenceparticipantsinadialogueabouthearthealthandtoexperienceon-site wellnessactivities,includingmini-strengthandstretchingsessions.

Promoting Health Equity with Close the Gap

Formorethanadecade,theBostonScientificClosetheGaphealthequityprogramhasfocusedoneliminatingcaredisparitiesandimprovingaccesstohealthservicesforunder-servedpatientpopulations.Thecompanycollaborateswithhealthcareproviders,nationalpatientadvocacygroupsandminorityassociationstoadvocateforbroaderrepresentationofminoritiesinclinicaltrialsandtosupporttheiraccesstoqualitycare.Wealsopartner withlike-mindedorganizationstoreachunderservedpatientpopulationswithculturallyrelevanteducationandresourcesdeliveredthrougheventsandcommunityprograms.

In2019,newdatafromthePLATINUMDiversitytrial,oneofthefirstclinical studiesofitskindtoidentifythe disparitiesexperiencedbywomen andminoritiesundergoingcoronarystentingproceduresascomparedtowhitemales,demonstratedthatminoritypatientsaremorelikelytostoptheir dualanti-platelettherapyaftera coronarystentingprocedure(when comparedtowhitemales),putting themathigherriskforpotentialadverseevents.Thesefindingscanserveasa basisforactionforhealthcareprovidersand is leading investigators to look furtherintowhythisishappening.

57,000 people reached through Close the Gap awareness events.

57 events held by Close the Gap in communities across the U.S.

$750,000 grants awarded to organizations working to increase enrollment of underserved populations in clinical trials.

180 Congressional Black and Hispanic Caucus members educated on inequities in health care and the impact of peripheral artery disease on African American men.

Boston Scientific employees participating in a Spirit of the Heart event in Georgia, U.S.

https://www.knowyourhealth.com/en-US/home.html

https://news.bostonscientific.com/stories?item=93

https://news.bostonscientific.com/stories?item=93


Every day, Boston Scientific is... achieving success through our people.

Our People23 ThePeopleofBostonScientific

24 MakingDiversityandInclusionaPriority

24 LeadershipCommitment

26 DiversityandInclusionGoals

29 EmployeeResourceGroups

32 Listening to Our People

33 Setting the Bar Higher

34 EmployeeGrowthandDevelopment

36 CompensationandBenefits

40 CaringforOurCommunities










ThepeopleofBostonScientificare definedby: Global impact: Ouremployeesmakeadifferenceforpeoplearoundtheworldand around the corner.

Diversity: Weareproudofthediversityofthought,backgroundandperspectivethatleadstoourgreatestbreakthroughs.

Winning spirit: Our people take on the industry’stoughestchallengesand never settle for the status quo.

Growth: Wemakelearning, developmentandprogressiona priority.Talentedanddedicated employeesdeserveopportunities togrow.

Engagement: Inourcollaborative workenvironment,peoplebuild lastingrelationshipswithcolleaguesworldwideandadvanceourthoughtleadershipintheindustry.

Opportunity: Weofferdiverseand globalcareeroptions,including internationalassignmentsand programs.

The People of Boston Scientific Inthelastthreeyears,wehavemadesteadyprogresstoincreasetheoverallrepresentationofwomenandmulticultural1 talent,withanemphasisonsupervisor andmanagerroles.









Bypushingtheboundariesofwhatis possible,ourapproximately36,000employeesacrosstheglobecollaborateeverydaytochangeandsavelives.Aswedevelop innovative solutions to address unmetneedsofpatients,physiciansandhealthcaresystems,theircollectivetalentand shared sense of purpose give us our competitiveedge.

Innovation thrives in a culture of engage-mentandinclusion.Peopledeservetoworkinanenvironmentwheretheycanmakesignificantcontributionstothe businesswhilealsopursuingtheir individualgoals.Ourtalentmanagementpracticessupportaworkplacewhere peoplecancreate,exploreandproblemsolve—andtrusttheywillberecognized fortheirperformance.

Our People

1 In the United States and Puerto Rico, defined as African American/Black, Asian, Hispanic/Latino, American Indian/Alaska Native, Native Hawaiian/Other Pacific Islander, and two or more races. Excludes any U.S. Puerto Rico employees where the ethnicity is “Unallocated.”

“ We do our best work to advance health care when we have a richness of perspectives and experience on our teams and when we can bring our whole selves to work.”

— Wendy Carruthers, Senior Vice President, Boston Scientific Human Resources

201920182017

47.0%46.5%

45.5%

Representation at All Levels

201920182017

33.2%

31.7%

30.7%

Women (Global)

Multicultural (U.S./Puerto Rico)










Making Diversity and Inclusion (D&I) a PriorityOurdiversityvaluestandsforinclusion,equityandopportunityforall.AtBoston Scientific,D&Iisinstrumentaltoour thriving culture and our focus on innovation.Weconsideritanurgent issueandbusinessimperative.The societyweliveinandthecustomers andpatientsweservearediversein culture,genderidentityandability.Toremaininnovativeandcompetitivein themarketplace,wemustreflectthis truththroughourpeople.Werecognizechangeisgradual,andwearecommittedtoprogressovertime,notovernight.

Leadership CommitmentOur leading advocate for D&I is Boston ScientificChairmanandCEOMike Mahoney.Hewasamongthefirstof morethan800CEOsofleadingcompaniestobecomeasignatoryoftheCEO Action forDiversity&InclusionPledge,thelargestCEO-drivenbusinesscampaigninthe UnitedStatestoadvancediversityandpromoteinclusiveworkplaces.

Consistentwithourpledgecommitments,weheldasecondannualDayofUnder-standingtohelpemployeesembracedifferencesinourorganizationsandbuildamoreinclusivecultureinsideandoutsideofwork.Wewelcomedthe”CheckYourBlindSpots”mobilebustourtoourMarlborough, Massachusettscampus,wherehundredsofemployeesboardedthebustoparticipateinvirtualrealityscenariosandlearnnewwaystounderstandandavoidunconsciousbias.Allparticipantssignedan“IActOn”pledgeaffirmingtheirpersonalcommit-menttoamoreinclusiveworkplaceandcommunity.WealsocollaboratedwithotherCEOActioncompaniestosharebestpracticesforfosteringaworkenvironmentwheredifficultconversationsaboutdiversityand inclusion can occur.

Boston Scientific employees welcomed the Check Your Blind Spots mobile bus to the Marlborough, Massachusetts campus. They participated in a unique, technology- enabled multimedia experience focused on understanding and exploring ways to mitigate unconscious bias.

D&I efforts throughout Boston Scientific align with four strategic pillars: CEO Action for Diversity and Inclusion

Boston Scientific was among the first signatories of the CEO Action for Diversity & Inclusion Pledge when it launched in 2017.

Thecoalitionunitesbusinessleadersaroundfourkeycommitments:1. Wewillcontinuetomakeour

workplacestrustingplacestohavecomplex,andsometimesdifficult,conversationsaboutdiversityandinclusion.

2. Wewillimplementandexpand unconsciousbiaseducation.

3. Wewillsharebest—andunsuccessful— practices.

4. Wewillcreateandsharestrategic inclusionanddiversityplanswith our Board of Directors.

CAREERAttract,develop,

advance and retain diverseemployees

COMMUNITYPromotediversity

and inclusion awarenessand

encourage engagement

company-wide

CULTUREBuild and sustain an inclusive environmentthat fosters innovation and high performance

DIVERSITY & INCLUSION VISIONA diverse and inclusive culturethatattracts,develops and retains

thebestteamtodeliverinnovativemedical

solutions

COMMERCEFacilitatediversityandinclusionoutcomes toinfluencebusinessopportunities

https://www.ceoaction.com/pledge/ceo-pledge/

https://www.ceoaction.com/pledge/ceo-pledge/

https://news.bostonscientific.com/examining-our-blind-spots-to-embrace-differences-2019

https://news.bostonscientific.com/examining-our-blind-spots-to-embrace-differences-2019


In2019,westrengthenedcompany-wideeffortstoachieveourD&Igoalsfor increasingrepresentationofwomen andmulticulturaltalentonregionalandfunctionalleadershipteamsacrosstheorganization.Attractingdiversetalentwasakeyareaoffocusandwecontinuedourtrend of hiring a greater percentage of multiculturaltalentandwomenthanourcurrent representation of these groups.

Collaborating for ChangeWecollaboratewithleadingorganizationsdedicatedtopromotingandsupportingtherightsanddevelopmentofwomen,multiculturaltalent,peoplewithdisabilitiesandlesbian,gay,bisexual,transgender andqueer/questioning(LGBTQ+)talent. IntheUnitedStates,ourpartnershipsincludeAdvancingMinorities’InterestinEngineering(AMIE),AmericanIndianScienceandEngineeringSociety(AISES),Disability:IN,HiringOurHeroes,the HispanicPromise,theHumanRights Campaign(HRC),theNationalSocietyofBlackEngineers(NSBE),NationalActionCouncil for Minorities in Engineering (NACME),reacHIRE,theSocietyofHispanicProfessionalEngineers(SHPE)andthe SocietyofWomenEngineers(SWE).

BostonScientificisafoundingmember of Disability:IN’sInclusionWorksProgram(formerlyGoingfortheGold),andin2019wewerepremiersponsorsofthe“INforInclusion”annualconference.Theeventofferedaforumfor1,500participantsfrommorethan10countries,including200NextGenLeaderswithdisabilities,toengagewithindustrypeersaboutdisabilityinclusion. The conference featured sessions ontopicsrangingfromworkplaceand supplychaintotechnology,andit celebratedleadersindisabilityequality.

Targeted Development & Retention ProgramsOverthelasttwoyears,webroadenedthescopeofEXCELerate,amulti-yearprogramfirstdesignedtofosterfemaletalentfrommanufacturing,supplychain,qualityandnewproductdevelopmentteamstonowincludeparticipantsfrominformation technology,globalbusinesssystems andsecurity.Wealsolaunchedaneffort tobeginofferingtheprogramtoall multiculturaltalent.In2019,employeesfromfourcountrieswerematchedwithBostonScientificexecutiveswhoserveasadvisors,mentorsandcareeradvocates.

OurMARC(MenActivatingRealChange)LeadersProgramsupportsmenasalliesandpromotesamorelevelplayingfield forall.Itscurriculumexaminesassump-tionsandmindsetstohelpleadersbetter understandhowdominantbusinesscultureandunconsciousbiasaffectpartnershipsbetweenmenandwomen.Theprogramfeaturesanimmersiveday-and-a-halfworkshopandfacilitateddialogue, includingongoingengagementthroughMARCalumninetworks.Followingasuccessfulpilotin2018,weofferedtheprogramtoexecutiveteamsin2019andwilloffernewMARCopportunitiestoallemployeesgoingforward.

OurWomen’sNetwork(WN)Employee ResourceGroupchapterscontinuedtoexpandin2019withfournewchapters,resulting in representation in each of thecompany’sfourglobalregions.TheWNchaptersholdprogramsthathelpparticipantsdeveloptheirleadershipskills,set and pursue career goals and expand theirnetworks.ExamplesoftheseofferingsincludetheWNTwinCities,MinnesotaProfessionalDevelopmentSeries,theWN“LessonsfromLeadHers”inourEurope,MiddleEastandAfricaregion,andvariouschaptermentoringinitiativessuchas MentoringCirclesandMaleAllyNetwork(MAN)mentormatchingprogram.









201920182017

50.2%51.2%

50.5%

New Hires

201920182017

43.5%42.6%

40.7%

Women (Global)

Multicultural (U.S./Puerto Rico)

https://disabilityin.org

https://disabilityin.org/what-we-do/nextgen-leaders-initiatives/


Diversity and Inclusion GoalsWetransparentlymeasureandreport ourprogressinbuildingadiverse workforcethatfullyreflectsourcore valuesandthecustomersandpatients weserve.Whiletraditionaldiversity recruitingeffortshavetargetedentry- levelpositionsorreliedontop-downchange,our“10/20/40”by2020initiativeshifted our focus to reshaping the company’scoremid-levelemployeebase.

OurrecentD&Iprogresswasdrivenbythese10/20/40by2020goals:

10: Berecognizedasatop10leader forworkplaceinclusion;

20: Increase representation of multiculturaltalentto20percentat thesupervisorandmanagerlevelsin theUnitedStates,includingPuerto Rico;and

40: Increaserepresentationofwomengloballyto40percentatthesupervisorandmanagerlevels.

WegainedD&Imomentumin2019, achievingour"10"objectivewithnumerousTop10recognitions,asaDiversityBestPracticesTop10PercentInclusionIndexCompany,amongthem.Wealsoexceededour"20"goalwith20.8percentmulticulturalrepresentation at the supervisor and managerlevels.Wemadesignificant progresstowardour"40"goalwith38.1percentrepresentationofwomenin supervisorandmanagerroles.Atalllevelsoftheorganization,representationofwomenincreased.Theresultsreinforcetheimportanceofmakingprogressovertime,notovernight.Tothatend,wehavesetnewambitiousD&Igoalstoreachby2023.









Wewereproudtobe recognizedasaTop 10% Inclusion Index Company byDiversityBestPractices.Seemoreawards.

Wereported20.8% representation of multicultural talent at the supervisorandmanagerlevels,meetingourgoal.*

Wereported38.1% representation of women at supervisor andmanagerlevels.*

D&I 10/20/40 by 2020 Results

*Results include 2019 acquisitions.

10TOP

20% 40%

https://www.bostonscientific.com/en-US/about-us/awards.html


Continuetobeatop10%globallyrecognizedleader for workplace inclusion, becauseweknowthat diversityandinclusion benefitsusall

Increase our goal for representation of multicultural talent at the supervisorandmanager levelsby3percentagepoints ormore,toatleast23%

Setting New GoalsOur“3Upby2023”goalsaregrowth focusedandensurewecontinueto buildonourmeasurablegoalswhile also challenging ourselves to achieve theminshortertimeframes.

ByDecember31,2022,weaimtoachievea3percentagepointincreasefromour10/20/40by2020representationgoals: Increase our goal for representation of womenatthesupervisorandmanagerlevelby3percentagepointsormore, for a total of at least 43 percent.

Increase our goal for representation of multiculturaltalentatthesupervisor andmanagerlevelby3percentagepointsormore,foratotalofatleast 23percent.

ContinuetobeaTop10percent globallyrecognizedleaderfor workplaceinclusion,becausewe knowthatdiversitybenefitsusall.

Achievingthesegoalswillrequire continuedchangeinthreekeyareas ofthemanagement-levelemployee experience: Attraction: Hiringdiversemanagerialtalentallowsustocultivatearichpool ofperspectivesandbackgrounds thatwillhelpusinnovatebeyond ourcurrentcapabilities.

Development: Recognizingand providing opportunities to diverse talentalreadywithinourworkforce helpstoensureemployeesatalllevelsexperiencemeaningfulcareerjourneys.

Retention: Payingattentiontowholeavesourteammattersjustasmuchaswhojoinsit.Bysupporting,engagingandretainingdiversetalent,wecanstemattritiontomaintainourdiverseandinnovative culture.

Webelievesharingourworkforce demographicdataisanimportant stepinholdingourselvesaccountable tomeasurableprogress.Tolearnmoreaboutourprogress,visitourD&Iwebsite.

Increase our goal for representation of women at thesupervisorandmanagerlevelsby3percentagepoints ormore,toatleast43%









” D&I is a business imperative and success requires the engagement of our entire company.”

— Camille Chang Gilmore, Vice President, Boston Scientific Human Resources and Global Chief Diversity Officer

3Up by 2023 Goals

https://www.bostonscientific.com/en-US/careers/working-here/diversity-and-inclusion.html


D&I InitiativesBostonScientificiscommittedtocreatingequalopportunitiesforgrowthacrossthecompany.Webelievethatmeetingthisobjectiverequires: Communicatingwithtransparency aboutourstrategy,actionsandresults

Promotingdiversityawarenessand inclusioncompetencyskillsfor employeesworldwide

Drivingaccountabilitytopromote measurableD&Iprogress

Withaheightenedfocusonattraction,developmentandretention,we acceleratedourD&Ieffortswithnew resourcesandprogramsin2019.

Diverse Leaders of Tomorrow: WelaunchedDiverseLeadersofTomorrow,aprogramtohelpdiversetalentmanagetheir personal and professional develop-mentandcareerprogression.Thetwo-dayexperienceforhigh-potentialleadersandtheirmanagersfocusesonequipping participants for future leadership oppor-tunitiesthroughskillbuilding,strategicplanningandnetworkexpansion.

Recruiting Diverse Talent: BostonScientificsteppedupeffortstorecruitemerging talentbydeepeningourrelationshipswithinstitutionssuchasHistoricallyBlackCollegesandUniversities(HBCUs).Inthesummerof2019,wehiredmorethan 170diverseinternsfromcollegesanduniversitiesacrosstheUnitedStatesaftermaking105on-the-spotofferstostudentsatcampusdiversityrecruitingconferences.

Talent Management Bias Audit:We conductedathird-partyreviewofour globaltalentmanagementprocessestoidentifypotentialunconsciousbias.Usingfourkeycheckpoints—clearstructures andstandards,differenceawareness,skillbuildinganddataaccountability—the evaluationofferedinsightsforhowwe canfurtherrefinemanagementpractices to achieve greater inclusion.

Inclusion Toolkit: Welaunchedanew onlineInclusionToolkitthatoffersallemployeeson-demandD&Itoolsandinformation.Thecontentwasdevelopedinresponsetofeedbackfrom2018focusgroupswith350employees.Thetoolkit’sresources include an Inclusive Behaviors self-assessmentthatencouragespeople toknowandincreasetheirInclusion IntelligenceQuotient(IIQ).

Unconscious Bias Training: Weexpanded ourUnconsciousBiastrainingtoall employees,makingitavailablein18 languages.The15-minuteonlinecoursewalksemployeesthroughquestions andscenariosthathelpthemrecognizeblindspotsorunconsciousbiasesthat cannegativelyinfluencetheirwork relationshipsanddecisionmaking.

D&I Dashboard: Thisnewinternal analyticstoolprovidesleadersadashboardtoreviewandanalyzetheirorganization’srepresentationandtrends,aswellas metricsforhiring,promotionandattrition.Asummaryisregularlyprovidedtothe ExecutiveCommittee.










More than 4,500 Boston Scientific employees are active across nine ERGs with 96 chapters globally, including 10 virtual chapters and 30 chapters outside the United States.

BRIDGE: DevelopingaCommunity of Black Leaders

HOLA: HispanicOrganizationfor LeadershipandAchievement

LEAD: Leadership,Educationand AlliesforDisabilities

PEARL: PacificEastAsianResources in Leadership

PRIDE: PromotingRespect,Inclusion,DiversityandEquality

SAIL: South Asians in Leadership

VETS: Veterans&EmployeesTogether in Service

WN: Women’sNetwork

YPN: YoungProfessionalsNetwork

Employee Resource GroupsEmployeeResourceGroups(ERGs)are atthefoundationofourD&Istrategy. ERGsarevoluntary,company-sponsoredemployeegroupsthatfosterandcelebrateourdiverseworkenvironment.WhileERGsaretypicallyformedaroundaspecific diversitydimensionsuchasgender,race,veteranstatus,sexualorientationorlifestage,allemployeesarewelcomeandencouragedtojoinanyERG.OurERG chaptersaroundtheworldcollaborateacrossthebusinessatalllevelsandareconsideredpowerfulvoicesforchange inthecompany.

BostonScientificsupportseachERGwithresources,globalandlocalexecutive sponsorsandstep-by-stepinformation onhowtostructureandleadthese organizations.OurEmployeeResourceGroupHandbookaddressesallaspectsoflaunchingandoperatinganERG,frommentorshipandsponsorshiptoexpensepoliciesandcommunicationsguidelines.In2019,wepilotedERGInsights,anewsoftwaremanagementplatformthatconnectsemployeegroupsinallregionsoftheworld.Itoffersonlinetoolsforsharinginformationandmanaginggroupresponsibilities,includingeventplanning,budgetingandmembercommunications.Followingasuccessfulsoftlaunchwith ERGleads,wewillsoonofferallemployeesaccesstoERGInsightsin2020.









The number of ERGs at Boston Scientific has more than doubled over the past five years. In 2019 alone, 11 new ERG chapters were launched.


Serving the Underserved with Health CampsBostonScientificemployeesinourSAILERGcollaborateacrossourMarlborough,MassachusettsandGurgaon, Indiaofficestoofferhealthcampsforchildren.In2019, SAILteamedupwiththeHealthCareServicesorganizationinIndiatoorganizelocalschoolvisitsbymedical professionals.Approximately800studentsinthreelocationshadtheopportunitytoreceivehealthcarescreeningsandfollow-upvaccinesaswellasdentalandeyecare.Studentsalsoreceivedbackpackswithdentalkitsandothersupplies,andparticipatedinSTEMactivitiesledbyourvolunteers.

Workplace AccessibilityInSeptember,ourLEADERGchaptersin10locations participatedinMakeWayDay,aglobaleventdedicated toidentifyingwaystoimproveaccessibilityatBostonScientificsites.Fromfurnitureandequipmentto collaborationareasanddigitalaccessibility,employeesintheUnitedStates,Ireland,PuertoRicoandCostaRicaworkedtogethertogeneratenewideasforimprovingfacilities.Theirworkcontinuesin2020withtheobjectiveofdevelopingacompany-wideaccessibilitystrategy.

Inclusive Restroom SignageOurPRIDEERGplayedaleadroleina2019efforttocreatemoreinclusiverestroomsignageatBostonScientificofficelocations.PRIDErepresentativescollaboratedwithHumanResourcesandGlobalFacilitiesteammemberstoreviewandconsiderproposalsforsignageandrestroomdesignupdates.Asaresult,twoupdatestoourGlobalDesignGuidelineswereapprovedandarenowbeingimplemented.

ERG Highlights










Global Council for InclusionTheBostonScientificGlobalCouncilfor Inclusionoverseestheimplementation ofthecompany’sD&Istrategies.ChiefFinancialOfficerDanielBrennanchairsthecouncilanditsmembersincludeChairmanandCEOMikeMahoney,theExecutiveCommittee,ourglobalD&IteamandallglobalERGleaders.ThecouncilmeetsquarterlytoevaluateD&Iprogressandconsiderchallengesthatmayariseforouremployeegroupsinalllocations.In2019,thisworkincludedthedevelopmentof actionitemstoensurethatERGsandallleadershavethesupporttheyneedto fosteraninclusiveenvironment.The councilalsowelcomednominationsfor ourfirst-everD&IImpactAwardsand selectedwinnersinfourcategories.

Inaugural D&I Impact Awards

The Diversity and Inclusion Impact Awardswereestablishedtorecognizeemployeeswhoseeffortshelpcreateaworkplacewherepeoplecanbringtheirauthenticselvestoworkeveryday.ThecompanyhonoredwinnersinthecategoriesofBusinessImpact,ValuedAlly,WorkplaceCultureandERGLeaderoftheYear.

Equal Employment Opportunity PolicyBostonScientifichasbeen,andwill continuetobe,anequalopportunity employer.Toensurefullimplementation ofthecompany’sequalemployment policy,wecontinuetoensurethat recruitment,hiring,assignment,promotion,compensationandallotherpersonnel decisionsaremadeandadministeredwithoutregardtorace,religion,ethnicity,nationalorigin,citizenship,sex,sexual orientation,genderidentity,genderexpression,veteran’sstatus,age,mentalorphysicaldisability,geneticinformationoranyotherprotectedclass.Wedrawstrengthfromtheuniquetalentsinherentinadiverseworkforceandwebelieve thebestandmostinnovativeproductscomefromaninclusiveworkplacewherevariedviewpointsarewelcomedand encouraged.Wealsohaveastrict policyagainstharassmentthatis reinforced through training and multiplecommunicationschannels.

LGBTQ+ Equality

In2019,we: Sponsored the Equality Act legislationtoestablishprotectionsagainstdiscriminationbasedonsexualorientationorgenderidentity,andwesignedontoanAmicus BrieffiledwiththeU.S.SupremeCourttosupportupholdinginclusivefederal non-discriminationpolicies.

Equalized paid benefits for bonding leave intheUnitedStatesforthebirthparent,non-birthparent,adoptiveparentorparentwhohasachildthroughasurrogate, andexpandedtransgendercoverageforbothvoiceandcommunicationtherapy andgenderreassignmentsurgery.

Created more inclusive restroom signageatBostonScientificofficelocations, includinganew“AllGender”restroomsigndesign(formally“GenderNeutral”)aswellassingle-occupancyrestroomlocatorsignsoutsideofgender-specificrestrooms.










Listening to Our PeopleOurbestideascomefromourpeople. Welistentothemaswecontinuously improveourworkenvironmentsand strive to attract and retain top talent. In addition to encouraging ongoing communicationandfeedbackbetweenemployeesandtheirmanagers,wedevoteresourcestoensuringthatallemployeeshavetheopportunitytosharetheirideasand insights.

Expanding EngagementWerevampedourEmployeeEngagementSurveyin2019tomakeitamoredynamic, real-timeassessmenttool.Thenew formatwilllaunchin2020withemployee pulsesurveystofacilitatecontinuousengagement,whichwillbefollowedbyaGlobalCensusSurvey.Thesurveysandresultsdashboardswillbeavailableonmobiledevicestooffereasyaccessforparticipationandreview.Thisall-electronicapproachnowenablesustoevaluateandshareemployeefeedbackwithreduced turnaroundtime.

Assessing People Leadership SkillsOur outreach to provide people leaders withfeedbackincludesemployeeinput onannualperformancereviewsand360-degreesurveys.Wealsoofferthe SPARKsurveythatletsemployeesrate theirmanager’sperformanceagainstadefinedsetofleadershipbehaviors.Morethan23,000employeeswereinvitedtoofferfeedbackon3,380peopleleaders in2019,witharesponserateof77percent.Oftheparticipatingmanagers,87percent (thosewiththreeormoredirectreportsresponding)receivedapersonalized feedbackreport.

Evaluating our CommunicationsBostonScientificconductsabi-annualall-employeesurveyaboutour communicationscontentandchannels.The2019surveygeneratedresponses fromnearly10,000employeesinall regions,anincreasefrom8,200in2017. Ofthoserespondents,77percentwerenon-managementemployees,20percentweresupervisorsandmanagersand3 percentwereleadersatthedirector levelandabove.Theresultsshowedanincrease of 7 percent in overall satisfaction withcompanycommunicationsand providedinsightsthatareinforming ongoingeffortstoengageourworkforce.










D&I Awards Bloomberg Gender-Equality Index: BostonScientificwasoneof230 companiesgloballytobeincludedin theIndex,whichtrackstheperformanceofpubliccompaniesmostcommitted tosupportinggenderequality.

Best Place to Work for Disability Inclusion: For the fourth consecutive year, wehave beenrecognizedasa BestPlacetoWorkforDisabilityInclusion,receivinga100%ontheDisability EqualityIndexin2019.

Forbes Best Employers for Diversity: ForbesrecognizedBostonScientificon itsAmerica'sBestEmployersforDiversitylistforthesecondyearinarow.

Best Place to Work for LGBTQ Equality: Forthefifthconsecutiveyear,weearneda100%scoreontheHumanRights Campaign'sCorporateEqualityIndex,earning the designation as a Best Place toWorkforLGBTQEquality.

Hispanic Association on Corporate Responsibility (HACR) Corporate Inclusion Index (CII): Inourfirstyearparticipating,wewerenameda5-StarCompanyforEmploymentbasedonHACR’saccountabilitysurveythat assesses inclusion of Hispanics in CorporateAmerica.

Diversity Best Practices: Boston Scientificwasoneofonly14companiestobenamedaTop10%InclusionIndex Companyin2019.

Beyond the Yellow Ribbon Company: WewerehonoredasaYellowRibboncompanyforsupportingservicemembers, militaryfamiliesandveteransastheytransitiontoemployment.

Best Companies for Multicultural Women: Working MotherMagazine recognizedBostonScientificforitspolicies,programsandpracticesthatsupport careeradvancement for multiculturalwomen.

Best Companies for Moms & Dads: Working MotherMagazineselectedBostonScientificforitsannual100BestCompaniesandBestCompanyforDadslists,basedonmaternalandpaternalleavepolicies,flexibleworkschedulesandinclusivebenefits.

Workplace Awards America’s Best Large Employers: ForbesrankedBostonScientific#1in theHealthCareEquipmentandServicesindustry.

Family Friendly Certified Company, Korea: BostonScientificKoreawas certifiedasaFamilyFriendlyOrganizationbytheKoreanGovernmentMinistryof

GenderEqualityandFamily,a designationacknowledgingour inclusiveandfamily-friendlyculture.

Best Companies to Work for in Asia: OurTaiwanandHongKongsiteswerebothrecognizedastopplacestowork,basedonourworkplacecultureand highlevelsofemployeeengagement.

Great Place to Work Certified, India: The GreatPlacetoWorkInstitutehonoredBostonScientificwiththisawardforourhigh-trust,high-performanceculture in India.

Top 50 Workplaces of the Fortune 500: Wewererecognizedasatop-ratedworkplacebyIndeed,whichincludescompaniesontheFortune500Indexwithatleast100employeereviews.

2019 Glassdoor Best Places to Work: Ouremployeescontributedvaluable,candidfeedbackaboutworkingat BostonScientific,earningusthishonorbasedentirelyontheirreviews.

Top 50 STEM Workplaces: Wewerehonoredforthethirdconsecutiveyear byAISES(AmericanIndianScienceandEngineerSociety),aU.S.non-profit focusedonsubstantiallyincreasing representationofNativepeoplesin STEM studies and careers.

Setting the Bar HigherBostonScientificisfullycommittedto promotinganinclusivecultureandbeinganemployerofchoiceforgloballydiversetalent.Inthespiritoftransparency,weparticipateinexternalbenchmarkindexsurveysthatcandidlyassessourprogressandensurewearedoingallwecantoachieve our D&I goals.

Weareproudtohavebeenrecognized bythefollowingorganizationsin2019.Pleasevisitourwebsiteforacompletelisting of BostonScientificawardsandrecognitions.

2019 People Awards












Employee Growth and DevelopmentDevelopingourpeopleprofessionallyisoneofthemostimportantthingswedo.Ateverylevelofthecompany,employeeshaveaccesstoprograms,trainingandtoolstheycanusetoadvancetheirskillsandexpertiseandcreategreaterpossibilitiesfortheir careers.

Developing TalentWeinvestinbuildingandsustaininganenvironmentwherecoachinganddevelop-mentareapriority.Toensurethesuccessandgrowthofourleaders,weoffertoolsand training to support their continuous developmentaswellastheiraccountability.

Withthepaceofbusinessmovingfasterthanever,wearebecomingmoreagileinthewayswemeettheneedsofourmultigenerationalworkforce.Thecompanyintroducedandexpandeddevelopmentprogramsforalllevelswitheasy-accesstoolsthatallowemployeestomanagetheirowngrowthandcareers.BostonScientific offersmorethan150professionaland technicalcourseseachyear,including on-the-jobtraining,skills-basedlearningandprogramsfortalentwhohavethe potential to hold future leadership positions.

Accelerated Leadership Development Program (ALDP) expedites the readiness of highpotentialleadersandkeysuccessorstotakeonmorecomplexroles.Seniorleadersactasfacilitatorsforaseriesofone-week

Team Acceleration isacustomized, interactiveworkshopthathelps employeesbuildandsustainhigh- performingteams.Thetwo-day curriculumofferstoolsthatuse customerinsightstohelpteams gainclarityabouttheirgoals,roles,processes and strategies in order toaccelerateandsucceed.In2019, morethan60participantsinthe U.S.completedthispilotprogram.

Insights Discovery isamethodologythatusesafour-colormodeland evaluatortohelppeoplebecome moreself-awareabouttheirstyle andstrengths,guidingthemto betterunderstandhowtheyinteractandperformasteammembers.In2019,morethan1,800employees participated in this training.

Mastering Emotional Intelligence isatrainingmodulethathelps employeesincreasetheiremotionalquotient(EQ)skills,includinghowtheycommunicate,makedecisions,respond to change and handle stress orconflict.Morethan300people atBostonScientificcompletedthe on-demand,voluntarytrainingin2019.

2019 Highlightsclassroomsessionsfeaturingbusiness simulations,coaching,casestudiesand networkingwithpeersandExecutiveCommitteemembers.In2019,theALDPgraduated27leadersfrom11countries.

Leadership Development Program (LDP) isdesignedfordirector-levelandaboveemployeeswhoarenominatedtopreparefortheirnextlevelofgrowth.Thecurriculumenhances their personal and leadership skills through interactive sessions and gives themopportunitiestonetworkwithglobalpeersandseniorleaders.In2019,39par-ticipantsfrom10countriescompletedtheprogram.Morethan500BostonScientificleadershavegraduatedfromtheLDP. In2020,thecurriculumandparticipantswillshifttofocusonpreparingsenior managersfordirector-levelroles.

Management Development Program (MDP) features resources and coaching toolsfornewleaders.Themandatory18-monthprogramcovershiringpractices,talentandperformancemanagement, unconsciousbias,situationalleadershipandcoachingskills.Morethan2,200managersworldwidecompletedover5,000MDPsessionsin2019.BasedonthesuccessoftheMDP,wearelaunchingthePeopleLeaderExperiencein2020,a12-monthprogramfornewleadersthat includesonboardingactivities,developmentexperiences and guidance for enhancing partnershipswithsupervisors.









568,000 hours spent by non- manufacturing employees in virtual and classroom training in 2019


Leadership Development Across CulturesBostonScientificofferstargetedleadershipdevelopmentprogramstocomplementcorporateprogramsandsupporttalentthroughouttheorganization.Some examplesofourregionaldevelopmentprogramsincludethefollowing:

Our Key Talent ProgramintheEurope,MiddleEastandAfrica(EMEA)regionprovideshigh-potentialseniormanagersanddirectorstheopportunitytoadvancetheirdevelopment.Theinitiativeaimstodeepentheregion’sleadershiptalentthroughacombinationofgrowth experiences,coachingandinteractionswithseniorleadership.

The Asia Pacific Leadership Development Program is an accelerateddevelopmentprogram for talented and diverse leaders to

buildourtalentpipelineforfuture commercialleadersintheAsiaPacificregion.Thecurriculumincludes businessprojectsandcareer-buildinginternationalworkexperiences,andit iscustomizedtomeeteachtalent’suniquedevelopmentalneeds.

Senior leaders and program alumni facilitateourleadershipdevelopmentprograminLatinAmerica,whichsupports buildingcapabilitiestoaddressthe region’semergingmarketchallengesanduniquehealthecosystem.In2019, 60participantsfromfivecountries completedthe10-sessioncurriculum. Inaddition,nearly200emerging leadersparticipatedincountry-level developmentprogramsinColombia(aboveleft),Brazil,Argentina,Puerto RicoandMexico(aboveright).

The bi-annual Asia Pacific Women's Leadership Summit,heldinBangkok,Thailand,includedfemaleleaders,maleadvocatesandseniorexecutivesfrom10countries(left).Withthetheme“Behindeverystrongwomanleaderisanetworksupportingher,”thesummitprovided aplatformforleaderstosharpentheirskillsandbuildanetworkforsharing bestpracticesandpromotingwomen’scareeradvancement.

Cross-Cultural LearningAsaglobalcompany,weofferemployeestheopportunitytoroutinelyinteractwithpeers,customersandpatientsfromavarietyofculturesandcountries.Wehavedevelopedacomprehensiveportfolioofon-demandtrainingandresourcesto supportcross-culturallearningand awarenessamongallemployees.










Compensation and BenefitsBostonScientificcompensationand benefitprogramssupportthewell-beingandhealthofourpeoplewhilealso providingflexibilitytomeettheirneeds andexpectations.Ourteamscontinuallyevaluatetheseprogramstoreachbeyondbestpracticeswithofferingsthatare thebestfitforouremployeesinour multigenerational,multiculturalworkforce.

CompensationWebelievestronglyinpayforperformance.Whereitisrelevanttoanemployee’sresponsibilitiesandisincompliancewithlocalandnationallaborstandards,westrivetoofferbothabaseandavariablecomponenttoemployeepay,including annualbonusprograms,long-term incentivestockawardsandperformancerewardsissuedonaone-timebasis,includingon-the-spotbonusesforhighlysuccessfulprojects,andrecognition awardsforbreakthroughperformance.

Sustainingequalpayforequalworkrequiresconstantmeasurementandattention.Ourpaypracticessupportthecompany’shigh-performanceculture, includingregularcompany-widebench-markingofsalaries,internalparityauditsandreviewsofpayrecommendationsacrossthebusiness.Wecontinueto assessandfine-tuneourpracticesto

Equal Pay for Equal Work: Pay EquityGlobalcompensationpracticesatBostonScientificarerootedinourvaluesandthehighpriorityweplaceonpayingpeopleequallyforequalwork.Weregularlybench-marksalaries,conductannualinternal andexternalparityauditsandreview payrecommendationscompanywide. Inaddition,wecontractwithanindepen-dent,thirdparty2toannuallyassesspayequityacrossallpositionsusingregressionanalysis.Thisdataanalyticsapproach controlsforvariablesthatinfluence compensationsuchasjobposition,tenure,yearsofexperienceandlocation.Weusetheresultstoidentifyanypotentialpaydisparitiesthatshouldbeaddressed.

Inthisprocess,welookcloselyatbothpayequityandpayparity.Weplacemoreweightonpayequitytoadvanceinclusion,equalityandopportunityforall.In2019,wecontinuedtoseepayequityresultsthat reflectourpracticesandthecommitmentofourleaderstoensureequalpay:99+percentpayequityforgendergloballyand99+percentpayequityformulticulturaltalentintheUnitedStatesandPuertoRico.Inthefewinstanceswhereweidentified agenderdisparity—whichoccurredin positionsinvolvingbothmenandwomen —weexaminedthecircumstancesandactedtoincreasepaywhereappropriate.

improveonourresults,maintaintrans-parencyandeducateleadersonourpayequitypractices.In2019,ourcompensationexpertsalsoheldface-to-facemeetingsandteleconferencesatmajorworksitesgloballytoaddressemployeequestions.

2 Resolution Economics LLC

Hourly2019 2018

Sales2019 2018

Salaried2019 2018

99.3%

99.5%

99.4%

100%

99.2%

99.9%

99.3%

99.3%

100%

100%

99.4%

100%

Salaried2019 2018

Sales2019 2018

Hourly2019 2018









99%+pay equity for gender globally, and for multicultural talent in the U.S. and Puerto Rico

Pay Equity

Gender (Global)

Multicultural Talent (U.S./Puerto Rico)

https://resecon.com


BenefitsWeunderstandthatgoodhealth, well-being,financialhealthandsecurity are essential for a productive and thrivingworkforce.Oneoftheimportantwayswesupportacultureofhealth forourpeopleisbyprovidingthem withcomprehensivebenefits.

Ourbenefitsplansarebasedontheseprinciples: Enable high-performing talent: As partofabroaderrewardsportfolio,weoffermarketcompetitivebenefitsthat areflexibleandaffordabletomeetthe individualneedsofourincreasinglydiversetalentbase.

Support life-work integration:Westrivetoofferprogramsthatacknowledge,respectandsupportanindividual’slifeandworkchoices.

Promote well-being:Ourprogramsareholistic in approach and designed to supportphysical,emotional,socialandfinancialwell-being.

Value and cultural fit:Westriveto offerbenefitsthatouremployeesvalue,differentiateourcultureandsupport aninclusiveworkenvironment.

Communication and tools:Weaim tocommunicateinamannerthat makesourplanseasytouseand enablesemployeestotakeaction toachievewell-being.

In2019,weaddressedtheincreasingly variedneedsforsupportandflexibility inourworkforce,whichismore multigenerationalthaneverbefore.InJapan,wedevelopedahandbookand newmanagerialpracticestosupport womenreturningtoworkafterchildbirth orothercareerbreak.Wealsocompleted aWorkflexpilotprogramintheUnitedStatesaimedatimprovinglife-work satisfactionandexpandedfinancialwellnessbenefitstoaddresstheneedsofemployees,fromthosestartingtheircareersandbuildingfinancialprofilestothoseinvestingforretirement.

Wetookfurtheractiontoacknowledgethat“family”hasbecomeabroadlydefinedandinclusiveterm.Thefollowingbenefitsbecameeffectivein2019orinJanuaryof2020. EMEA paid parental leave: In the EMEAregion,wesignificantlyexpandedparentalleaveforemployees.AllnewparentsworkingatBostonScientific sitesintheregionarenoweligiblefor aminimumof18weeksoffullypaidleaveduringthefirstyearoftheirchild’sbirthoradoption.

Women’s and family health: In the UnitedStates,wepartneredwiththe virtual clinic Maven to expand our offeringsforemployeesandtheir partnerswhoarepregnant,uptosix

Global Employee Assistance ProgramsThecompany’sGlobalEmployeeAssistanceProgramsmaintainanetworkofsupportand resources that encourage overall well-being,includinghelpwithfinances,familylife,elder/childcareandmentalhealth.Wecontinuedtobroadenthe availabilityoftheseprogramstoincludeallcountrieswhereourcompanyhasaconcentrationofemployees.

Embracing Life-Work NeedsOurGlobalBenefitstoFitYourLifeprogramis a package of solutions designed to makelife-workintegrationeasierforallemployees,regardlessoftheirstageoflife.Itprovidesthebenefitsandservicesouremployeeswantinordertobehappy,productive and engaged in their roles. Ourlife-workofferingsincludetelehealthservices,childcareandparentalcare benefits,collegeandfinancialplanning, abreastmilkshippingservice,tuition support,ameal-planningserviceand sabbaticalsforemployeeswithmore thansevenyearsofservice.

monthspostpartumorpursuingfertilitytreatment.No-costbenefitsavailablethrough Maven include support through eggfreezing,fertility,pregnancy, postpartum,adoption,surrogacy,earlypediatricsandreturningtowork.

U.S. paid parental leave:Benefitsareavailabletoallemployeeswhoarenewparents—birthparents,non-birthparents,adoptiveparentsandnowforparentswhohaveachildthroughsurrogacy. In2020,wealsoexpandednon-birthpaidparentalbondingleave toeightweeks.

Surrogacy benefits:Weintroduced asurrogacyexpensereimbursement programsoU.S.employeeswhohave achildthroughsurrogacynowhave benefitssimilartothoseweoffer employeeswhoadoptchildren.

Expanded fertility benefit:Weenhanced ouremployeefertilitybenefitforU.S. employeestocovertreatmentswithoutanydiagnosisrequirements,makingiteasierforemployeestoreceiveassistedreproductivetechnology,including thosewhoaresingleorinsame-sexrelationships.

Tolearnmoreaboutourbenefitprogramsandservices,visitBenefitsConnect.









https://secure.bscbenefitsconnect.com/home/index.html


Employee Health and SafetyBostonScientifictakesaglobalapproach toprioritizing,executingandmonitoring effortstoensureemployeesafetyand fosterasafety-orientedcultureinallof ourofficesandfacilities.

WesethealthandsafetygoalscalledTotalRecordableIncidentRate(TRIR)targetsforeveryBostonScientificoperationssite.Tomeasurethenumberofinjuriesper100employees,ourEHSOperationsCouncilreviewsperformancemonthlytodiscusstrendsandrisks,aswellasopportunitiesforimprovement.

Occupational Health and Well-beingThepeopleofBostonScientificare ourmostvaluableresource,anda comprehensiveoccupationalhealthandwell-beingprogramisanintegralpart ofouremployeesupportsystem.Our Occupation Health Council expands the reachofourhealthandwellnessprogramswithofferingsincludingemployee nutrition,healthyminds,healthybodies,weightmanagementsupport,yoga, mindfulnessmeditation,smokingcessationsupportandgroupsportingevents.Wealsobroadenedourfocusonmental healthawarenessanddevelopedmorewaystoofferhelp,resourcesandreferrals to care providers.

DuringtheyearweexpandedtheTRIRgoaltoincludeourglobalorganizationandsetagoalof0.25by2030,cuttingourincidentrateby50percentacrossthecompany. Thisnew2030TRIRgoalwillbeakey performanceindicatorincorporatedintoourcompany-wideperformancetrackingforsafety,quality,serviceandcost.

WeintegratemultiplehealthandsafetymetricsinourEnvironment,HealthandSafetymonitoringsystemsatboththe localandgloballevelinaccordancewiththe BostonScientificEHSpolicy. Our performanceagainstthesemetricsis revieweddailybylocalsitegroups,weeklyinmanagementmeetingsandmonthlywithgloballeadershiptoidentifyand respondtoanyadversetrendsorincidents.

In2019,wepromotedthebenefitsofvolunteeringthroughcommunitylitterpickups,blooddonations,groupmountainclimbsandourLEADERG’ssupportfora“Run1Mile”event.

WealsoreleasedtheEHSEssentials handbookforemployeeswithEHS responsibilitiesthroughouttheorganization. Thehandbookdetailsourcompany-wideEHSstrategyandpolicy,andestablishestheexpectationsandresponsibilitiesfor allBostonScientificsites.









Total Recordable Incident Rate (TRIR) Goals

In 2019, we met our 10-year target of

0.5 TRIR

2030 Goal:

0.25 TRIRAchieve a company-wide safety goal of 0.25 injuries per 100 employees

An employee enjoying her workout in the fitness center at our global headquarters in Marlborough, Massachusetts.

https://www.s-icd.ca/content/dam/bostonscientific/corporate/citizenship/sustainability/Boston_Scientific_Global_EHS_Policy_90730673_AB_6.pdf


Buenos Aires, Argentina OurBuenosAiresteammovedintoanewly renovatedofficethatofferscollaborativespacesandplentyofnaturallight.

Clonmel, Ireland Thenewopen-spacebuildingonourClonmel,Irelandcampusis designed to encourage employeemobility.

Shanghai, China Our Shanghai headquarters features a renovated Institute for Advancing Scienceandofficespace.

Pursuit of Excellence in our Global Facilities

Madrid, Spain OurMadridteammovedintoanewofficethatfeatures an Institute for AdvancingScienceaswellasamplecollaborationspaces.









Wemaintainfacilitiesatthehighest standards to ensure thecompany’sworkspacespromoteoptimalphysicalhealthandoverallwell-being. Ourscientificenvironmentsare designed to foster creativity,communicationandinnovation.In2019,ourfacilitiesteamsincreasedthe use of natural light at a numberofcampusesandaddedcollaborativeworkareasthatofferemployees greaterflexibility,more networkingopportunitiesandtheagilitytodotheirbestwork.

Chengdu, China InChengdu,Chinaweopened an Institute for AdvancingScience,a17,000square-footfacility withstate-of-the-art labsandclassroomsfor healthcare professionals tolearnaboutBostonScientificproductsandprocedures.


Caring for Our CommunitiesOuremployeesarethedrivingforce behindthewayweliveourcaringvalueinthecommunitieswherewework.Theyhaveaprominentvoiceinhowweinvest inthewell-beingofcommunitiesand volunteertomaketheworldabetter place.Ourcommunityoutreachfocuses onthreekeyareas:

Health: Weaimtodecreasehealth disparitiesfortheunderservedby providingaccesstoqualitycare.Thisworkisgroundedinpreventionthrougheducationandawareness,providing accesstocarebyincreasingthenumberofqualifiedhealthcareworkersand preparingkidsatriskfor,ordiagnosedwith,achronicdiseasefortheirjourneyinto adulthood.

Community: Throughengagement andrecognitionprograms,weareempoweringouremployeestoadvancepossibilitiesintheirlocalcommunities bydonatingtheirtimeandresources tohelpthosemostinneed.

Education: Asalongtimeadvocate foreducationandSTEM(Science, Technology,EngineeringandMath) programmingforK-12students,we are developing diverse future talent thatwillenableustocreatehealth solutionsforgenerationstocome.

In2016,BostonScientificpartneredwiththehealthandhumanitarianrelieforga-nizationProjectHOPEtofundtheUnitedDialogueandActionAgainstNon-Com-municableDisorders(UDAAN)program.WeenteredintothiscollaborationtohelpstemthesignificantriseinprematuremortalityinIndia,wherechronicdiseasesareestimatedtoaccountfor60percentofalldeaths.Overthelastthreeyears,weworkedwiththeProjectHOPEteamtoimplementtheprogramintheRanchidistrict of Jharkhand State.

Theinitiativefocusedonworkingcollab-orativelywiththeStateGovernmentofRajasthantodeliverservices,careandsupport for health practices that can helppreventchronicdisease.Italsobuiltcapacityintohealthsystemstoidentify andmanagechronicdiseaseinthe

HEALTH: Fostering Healthy Communities Weembracetheprofoundresponsibilitythatcomeswithourworkinhealthcare. Becausepreventingillnessisasimportantastreatingit,ourhealthawareness programsoffereducationandresources tohelppeoplelivebetter,healthierlives. Inregionswherepeoplelackadequateaccesstoinformationandbasiccare, wecollaboratewithcharitiesandothernon-governmentalorganizationsto makestridesinreducingchronicdiseaserisk and health disparities in these underserved populations.

Inanefforttocontributetoimprovedhealthforasmanypatientsaspossible, weshareourproducts,expertise,time andresourcesglobally.OurpartnershipswithProjectHOPE,Children’sHeartLink and Partners in Health have helped to increasethenumberofhealthcareworkersfocusedonchronicdiseaseworldwide.Since2016,thesecollaborationshave providedtrainingformorethan2,800healthcare professionals and chronic diseasescreening,educationorcare formorethan23,000peopleinIndia, SouthAfrica,MalaysiaandMexico.

communityandstrengthenthenecessaryreferralstochronicdiseaseclinics, AccreditedSocialHealthActivist(ASHA)andAnganwadiWorkers(AWW)forhomefollow-upcare.Inaddition,theUDAAN program’seducationeffortsemphasized theimportanceofhealthylifestylesthrough interpersonal counseling and communitymobilization.

BecauseofthecommitmentofBostonScientific,ProjectHOPE: Screened13,534adultsbetweenthe agesof30and70fornon-communicablediseases(NCDs)

Trained1,321communityhealthworkersandmedicalofficersonNCDprotocols

Reached220,000peoplefrom 200villages

Project HOPE in India










COMMUNITY: Giving BackIn2019,morethan10,000BostonScientific employeevolunteerscontributedmorethan41,000hoursoftheirtimein38countries,andtheysupportedmorethan600communityevents.Ourannualawardsprogram,whichrecognizesandrewardsemployeecommunityserviceefforts, receivedmorethan140nominations.

In2019,BostonScientificcontributedmorethan$85milliontosupportmedicalresearch,educationandcharitable organizations.Weprovided$77million infundingforresearch,educationand fellowshipsaddressingabroadspectrumof health conditions and diseases. Ourcharitabledonationstosupport communitiesaroundtheglobetotaledmorethan$8.1million.

Inaddition,asaresultofemployee participationintheBostonScientific EmployeeMatchingGiftsProgram,wemade$1.2millionincontributions.

Possibility GrantsBostonScientificemployeesfromour Massachusetts and Minnesota facilities havetheopportunitytonominatelocalnon-profitsforPossibilityGrantsthathelpmeetasignificantcommunityneed.In2019,weawarded$15,000inPossibilityGrantsto10non-profitgroups.Communityeffortsandimprovementssupportedbythesegrantrecipientsinclude:

A local school’s new programtoofferstudentsfirst-timeaccesstorobots

Repairs for a farm that provides enrichmentprogramsforindividuals withandwithoutdisabilities

New shelving for a food pantry to provide access for all clients regardless ofmobilityrestrictions

STEM experiences for studentsfromhomelessfamilieswhoareplacedintransitional housing facilities

Week of CaringInthesecondannualBostonScientificWeekofCaring,employeesinover15 countriesdemonstratedthepositive differencewecanmaketogether

throughanimpressiverangeof communityprojects.Ourcontributionsincludedbookdrivesforhospital librariesinGreece,afitnesschallenge inGalway,Irelandanddisasterrelief supplycampaigninSingapore.InLatinAmerica,employeesmobilizedto commemorateWorldEnvironment Daywithtreeplantingsandother greeninitiatives.InMalaysia,wehosted ablooddonationcampaignandworkedwithlocalcharitiestoexpandtheir outreach.Closertoourglobalheadquarters inMassachusetts,wesponsoredvolunteerawarenesseventsanddeployedteams tostaff28communityprojectsinthe Boston area.

10,000+ employee volunteers

41,000+ hours

38 countries

600+ community events

140+ award nominations

$162+ million in contributions for medical research, education and charitable organizations










China Caring Team EmployeesinChinavolunteeredalongsidetheChinaMayor'sAssociationandtheBethuneFoundationtohelpwithlocalpatienthealthscreenings.ThefirsteventofthisinitiativewasheldinPanzhihua,SichuanProvince.WiththeassistanceofthelocalgovernmentandthePanzhihuaChinese-WesternHospital,morethan300patientsreceivedbloodpressure screeningsandeducationmaterialsonvariousmedicalconditions.

Colon Cancer Awareness Events TheSouthernCaliforniaEndoscopySalesTeamjoinedtheirlocalcustomersto hostcoloncancerawarenesseventsled byCaliforniahospitalsandcommunities.Thepurposeoftheeventswastoreachat-riskindividualsinthecommunityandprovidethemwithinformationaswellasaccess to colon cancer screenings.

Volunteer Recognition Awards TheBostonScientificGlobalCommunityEngagementteamannouncedthethreewinnersofoursecondannualVolunteerRecognitionAwards.Nearly100employees from24countrieswerenominatedfortheircommitmentstoimprovingtheirlocalandglobalcommunities.Ourhonorees’contributionsincludedgrassrootsvolunteercampaigns,advocacyfordisabledathletes,andleadershipthatresultedinmedical andhumanitarianmissions.

STEM and Family in Seoul Employeesandtheirchildrengathered in Seoul for our South Korea STEM and FamilyEvent.Usingabring-your-child-to-workapproach,theprogramofferedanopportunityforkidstodevelopaninterest inSTEMastheylearnedaboutBoston Scientific,ourproductsandwhattheir parentsdoatwork.Participantswere alsotrainedinCPRandhowtohelpin alife-threateningsituation.

Rhythm Management Product Donation Program WesupportU.S.physicianswithresources fortheirhumanitarianmissions.Our CardiacRhythmManagementand ElectrophysiologyGrantCommittee reviewsandapprovesapplicationsfromdoctorsforindigentcareandhumanitarianproductdonations.In2019,thecommitteeapproved$180,000infundingformissionstoEgypt,India,Honduras,Bolivia,LebanonandDominicanRepublic.









2019 Highlights: Caring for Customers, Communities and Patients

“ In nearly 30 years of working at Boston Scientific, I’ve never been prouder of how our teams embrace so many significant ways of caring.”

— Marilee Grant, Director, Boston Scientific Global Community Engagement

http://www.medicaltimes.com/Users/News/NewsView.html?ID=1130916&REFERER=DM

http://www.medicaltimes.com/Users/News/NewsView.html?ID=1130916&REFERER=DM


EDUCATION: Inspiring the Next Generation of STEM InnovatorsOuremployeevolunteersbringtheir energyandexpertisetointroduceK-12youthtoSTEMexperiencesandcareers. InourworktoinspireadiversegenerationofSTEMinnovators,BostonScientific bringscustomizedSTEMactivitiesand interactiveexperiencestotheyoung peopleinthecommunitiesweserve.

Ourteamsareespeciallyinterestedin introducingstudentsfromunder- representedpopulationstothepossibilitiesSTEMlearningcanprovide.Theyconsultwitheducatorstobetterunderstand students’needsandconductSTEM outreachthroughacombinationof mentoring,sharingcareerexperiences and leading participants through hands-onexperimentsandonsitetours.

BostonScientifichasdedicatedvolunteerteamsfocusedonSTEMprogrammingat13sites.Theirworktohelpgrowafuturepipelineofdiversetalentincludesfindingcreativewaystosharetheirpassionfortheirwork,fromcareercardsandvideos to events that introduce students to a varietyofSTEMroles.In2019,our peoplecontributed:

12,000+ STEM volunteer hours 1,500+ STEM volunteers 160+ STEM events

STEM Camp in Puerto RicoTheBostonScientificDoradomanufacturingplanthosted19 publicschoolstudentsforanintensiveone-weeksummer technologycamp.Theprogram,designedandledbyourlocalSTEMteam,focusedonhowtoputnewconceptsforinnovationintopractice.Studentsparticipatedinproblem-solving activitiesandtookonchallengessuchasapplyingNewton’s Lawsandconstructingarobot.

Technical Training in IndiaEmployeesinGurgaonpartneredwiththeKikiCentreforTechnology toofferanewpathwayforyouthtoapplyskillstheylearnintheclassroomtoreal-worldexperiences.Studentsenrolledinthethree-yeartechnicaltrainingcoursereceivedclassroominstructionandindustrytrainingwithlocalbusinesses.ThreestudentsselectedforBostonScientificinternshipscompletedtheirfirstyearoftrainingin2019.

Future Med-Tech in ChinaAtBostonScientificShanghai,wewelcomed30sixthgradersforadayofSTEMactivitiesthatincludedasitetour,a3D-surgerytutorialandsimulatedsurgicaloperations.AhighlightoftheeventwasthelaunchofDesignThinkingwithFutureMed-Tech,anewinteractiveprogramdevelopedwiththehelpofJAChina.Thecurriculumwasdesignedtoinspireinnovationandshowstudentshownewwaysof thinking can lead to healthcare solutions.

Our Commitment to STEM










Every day, Boston Scientific is... helping shape the future of our planet.









Our Planet46 GEMSKeyPerformanceIndicators

47 ClimateChange

48 EnvironmentalImpact

50 GreenTeamEnvironmental SustainabilityInitiatives

Boston Scientific employees participating in a tree planting event in Colombia in September 2019.










Acriticalchallengeforusasaglobal medicaldevicemanufactureristodeliveronourpromisetocustomersandpatientswhilecaringfortheplanet.Thewaywedoourjobseachdaycontributestoreducingourenvironmentalimpacts,achieving carbonneutralityandimprovingsupply chainsustainability.Wearemakingmeasurableprogresstowardshapingabetterfutureforourplanetbyproactivelyaddressingenergyconsumption,carbonemissions,wastemanagementand wateruse.

The BostonScientificEnvironment,HealthandSafety(EHS)Policy outlines our high environmentalstandardsandiscentraltotheworkofournewlyestablishedEHS CenterofExcellence.Werigorouslymeasure,assessandreportprogresstowardourEHSgoalsglobally.Acrossalloperationsandkeydistributionlocations,westrivetomeetandexceedInternationalOrganiza-tionforStandardization(ISO)standardsforenvironmentalmanagementsystems.In2019,ournewestmanufacturinglocationinPenang,MalaysiaachievedISO14001:2015certification.Ofthe16BostonScientificsitesthathaveearnedthiscertification,13facilitiesachievedzeronon-conformancesduringthe2019auditcycle.

OurGlobalEnergyManagement System(GEMS)helpsensurethatwe meetambitiousenergyreduction andgreenhousegas(GHG)reduction targets using the C3strategy(Cut, Convert,Compensate).Developed incollaborationwiththeNational UniversityofIreland,Galway(NUI Galway),GEMSfocusesoncutting energyuse,convertingtorenewable energyresourcesinsteadoffossil fuelsandcompensatingwithcarbon offsetprojectswhereneeded.Our advancesthroughGEMSearned BostonScientificandNUIGalway recognitionasfinalistsforthe2019 US-IrelandResearchInnovationAwards, ajointinitiativeoftheRoyalIrish AcademyandtheAmerican ChamberofCommerce,Ireland.

WearecontinuallymonitoringprogressthroughGEMSandourteamsare workingtomeetorexceedthefollowingtargetswiththeoverallgoalofachievingcarbonneutralityby2030: 50percentrenewableelectricityby2021 100percentrenewableelectricityby2024 90percentrenewableenergy(allsources)by2027

Our Planet

“ Working in the healthcare space, we have the privilege to help advance science and improve patient health, but we also have the responsibility to do this work in a sustainable manner that enriches communities. We’ve set aggressive environmental goals to do our part to help shape a better future for our planet, and we’re holding ourselves accountable.”

— Brad Sorenson, Senior Vice President, Boston Scientific Manufacturing and Supply Chain

Our targets to achieve carbon neutrality by 2030:

50%

renewable electricity by 2021

100%

renewable electricity by 2024

90%

renewable energy (all sources) by 2027



https://www.amcham.ie/getattachment/About-Us/Innovation-Awards/US-Ireland-Research-Innovation-Awards-(7).jpg.aspx

https://www.amcham.ie/getattachment/About-Us/Innovation-Awards/US-Ireland-Research-Innovation-Awards-(7).jpg.aspx


The GEMS methodology is implemented through our global energy team, including representatives from each Boston Scientific manufacturing and main distribution sites. We measure our performance through these GEMS key performance indicators (KPIs):

2015 2016 2017 2018 2019

Carbon Footprint TotalamountofScope1andScope2GHGemissionsemittedintothe 118,327 108,694 94,946 85,127 84,778 (MT CO2eq) atmospherefrommanufacturinganddistributionsites.Measuredin

metrictonsofcarbonequivalent.

Energy Use (kWh) TotalenergyBostonScientificconsumesannuallytomanufacture 370M 367M 364M 352M 368M our products.

Energy Use kWh/$K TotalnormalizedenergyBostonScientificconsumesannuallyto 49 44 40 36 34 Revenue manufactureourproducts.

EM3 Anenergymanagementmaturitymodeltoestablishwhereinthe 2.7 3.2 3.6 3.7 3.9 “energyjourney”eachmanufacturingsiteresidesonascalefrom1to5 (Minimal>Emerging>Developing>Advancing>Leading).

Green Real Estate PercentageofBostonScientificrealestatethatisindependently 27% 28% 32% 37% 45% (% of total) certifiedforenergyefficiencybyindustry-leadingprogramssuchas

LEEDfordesignandEnergyStarorISO50001forbuildingoperations.

Renewable Energy Percentageoftotalenergyconsumed,generatedfromrenewable – – – 5% 11% (% of total) energysources,withBostonScientificowningtherenewableattributes.

Cleaner Energy Energyproducedfromfossilfuels,butbasedonhigh-efficiency 6% 7% 9% 9% 11% (% of total) technologiessuchascombinedheatandpower(CHP)incomparison

toconventionalpowergeneration.


















Climate ChangeByaddressingthecompany’senergy consumption,carbonemissionsand environmentaldesign,wearereducing ourclimateimpacts.

Striving for Carbon NeutralityBostonScientificiscommittedtoachievingcarbonneutralityacrossourmanufacturingandkeydistributionsitesby2030.Carbonneutralitymeansachievingnetzerocarbonemissionsassociatedwithmanufacturingoperationsandenergyusebybalancingtheamountofcarbonreleasedwithanequalamountremovedorcompensated.IncreasedlevelsofcarbondioxideandotherGHGemissionsintheatmospherearecloselytiedtoclimatechange, andachievingcarbonneutralitywill significantlyreduceourcontribution to this pressing issue.

Leading in Energy CertificationSustainabilityisacriticalobjectiveforourglobalfacilities'teamsaswefocuson improvingexistingsitesanddevelopingnewconstructioninanenvironmentallyresponsiblemanner.

LeadershipinEnergyandEnvironmentalDesign(LEED)isaninternationally recognizedcertificationprogramfor theenvironmentalperformanceand sustainabledesignofbuildings.Boston Scientificnowhas14LEED-certified buildingsoncampusesintheUnited

States,CentralAmerica,Europeand Asia,includingourSanJoseBaytech siteinCalifornia,whichachieved LEEDcertificationin2019.InSweden, ourHelsingborgOfficeachieved "Miljöbyggnad”Silvercertification fromtheSwedenGreenBuilding Council,Sweden'slargestorganization forsustainablecommunitybuilding.

Continualimprovementintheenergy performanceofourmanufacturing operationshasearnedISOcertificationforfiveofourmanufacturinglocations.Thecompany’stwoCostaRicamanufacturing sitesinCoyolandHerediahavebeen carbon-neutralsince2016andreceived ISO50001:2011certificationthefollowing year.In2019,BostonScientificfacilities inClonmel,CorkandGalway,IrelandachievedISO50001:2018certification. OurdistributioncenterinKerkrade, Netherlandsmaintainedits3rd Lean &GreenStarcertification,firstawarded in2018byEurope’sleadingprogram forsustainablelogistics.Weareone ofonlyninecompaniesinEurope toreceivethisawardforcarbon emissionsreduction.

Intotal,BostonScientificoperates 4.3millionsquarefeetofindependentlycertifiedgreenrealestatethatsupportsourenergyperformanceandsustainabilitygoals,representing45percentofour footprintworldwide.

We have committed to achieving carbon neutrality in all of our manufacturing and key distribution sites by 2030.

LEEDing Locations

45% of our global footprint worldwide is green real estate

United States SanJoseBaytech,California LEEDSilver MapleGrove,Minnesota LEEDSilver/LEEDCertified Marlborough,Massachusetts LEEDGold/LEEDCertified Quincy,Massachusetts LEEDSilver/LEEDCertified

Central America Coyol,CostaRica LEEDSilver/ISO50001:2011 Heredia,CostaRica ISO50001:2011

Europe Clonmel,Ireland ISO50001:2018 Cork,Ireland ISO50001:2018 Galway,Ireland ISO50001:2018 Kerkrade,Netherlands LEEDSilver/LeanandGreen Helsingborg,Sweden MiljöbyggnadSilver

Asia Beijing,China LEEDSilver/LEEDCertified Shanghai,China LEEDSilver Penang,Malaysia LEEDSilver Singapore LEED Silver

https://www.sgbc.se/certifiering/miljobyggnad/vad-ar-miljobyggnad/

https://lean-green.eu/news/the-first-ever-3rd-lean-green-stars-awarded/

https://lean-green.eu/news/the-first-ever-3rd-lean-green-stars-awarded/










Investing in Renewable Energy OurworktoreduceGHGemissions includesinvestinginrenewableenergy. Attwoofthecompany'slocationsin Massachusetts,wehaveonsitesolar installationsthatgeneratedacombinedtotalof3.1millionkilowatt-hoursof renewableelectricityin2019,resulting insavingsofnearly1,000metrictons ofGHGemissions.AtourMarlboroughheadquartersandQuincydistribution center,solarenergywasresponsible for 46 percent and 45 percent of the electricityrequiredtooperate,respectively.AlsoinMassachusetts,BostonScientific becametheanchorbusinesscustomer foranew12.9-megawattcommunity solardevelopment,aprojectinvolvinglargeandsmallbusinessesandresidentialhouseholdsthatwillincreaseaccesstocleanenergyacrossthestate.

Wecontinuetomakeprogresstoward ourgoalofpurchasing100percent renewableelectricityby2024.In2019, ourthreemanufacturingsitesinIrelandmarkedtheirfirstfullyearofoperatingwithcertified100percentrenewableelectricity.Overthecourseoftheyear,renewable energyaccountedfor11percentofour energypurchased.Inaddition,weexecutedavirtualpowerpurchaseagreementfor100percentrenewableelectricityforourU.S.energyneeds.

Environmental ImpactAsacompanywithaglobalfootprintandglobalimpact,wehavearesponsibility tocarefullymanagethematerialsinourproductsandpackaging,theresourcesusedtomanufactureandtransportthemandwhathappenstoanywastegenerated. Wemeasurewastegenerationand wateruseatourmajormanufacturing anddistributionfacilitiesthroughthe implementationofISO14001:2015.The BostonScientificplantinMalaysiaachievedISO14001:2015certificationin2019,andwenowhave16sitescertifiedtothisstandard.

Waste ManagementSustainablewastemanagementcontinuestobeasignificantpriorityforBoston Scientific.Wehaveadoptedinternationalbestpracticesandresearch-basedprotocolsasourteamsworktocontinuallymakegreaterprogress.In2019,werecycled80percent—8,943metrictons—oftotal solidwaste.Thecompany’soperations andprimarydistributionsitesrecycled orrecovered54percentofhazardous andregulatedwastegenerated.We alsodiverted95percentofsolidwastefromlandfills.

Inaddition,wealmostmetour10-year environmentalgoalofan81percent recyclingrate.In2019,weevaluatedoureffortsandcommittedtoa2030goalofachieving TRUEZeroWasteCertification forouroperationsandkeydistributionsites.Thiscertificationwillcreatea frameworkforminimizingnon-hazardoussolidwastesandmaximizingefficiency inthecompany’suseofresources.

Solar installment at Boston Scientific global headquarters in Marlborough, Massachusetts

Clearway Energy Group community solar project in Massachusetts

https://true.gbci.org










Conserving WaterWeunderstandtheimportanceofwaterasasharedresource.WhileBostonScientificoperationsarenotwater-intensive,we arecommittedtominimizingconsumptionandbeingpreparedforenvironmentalchallengessuchaswaterscarcity.In2019,weconductedanassessmentofwater- related risks and opportunities at all manufacturingandcentraldistribution sitesbasedonlocalwaterstressand intensityofwateruse.UsingtheWorld ResourcesInstituteAqueduct—aglobalwaterrisk-mappingtool—wedeterminedthat11locationsareatlowoverall water-relatedrisk,andsixfacilitiesare inthelow-to-mediumwater-related riskcategory.Thiseffortwillexpand in2020toincludethecompany’s significantcommercialoperations.

Waterusageatourmanufacturingandmajordistributioncentersispredominantlyassociatedwithheadcount;only25percent ofourconsumptionisassociatedwith productionprocesses.Evenwitha 12.5percentincreaseinheadcountin 2019,weconsumedmarginallyless waterthanin2018.Overthepast10years, wehavereducedwaterconsumption by30percent.

Recognitions for Sustainability Leadership

FTSE4Good Constituent: Boston Scientificearned2019certification intheFTSE4GoodCorporateSocial ResponsibilityIndex,whichmeasures theperformanceofcompaniesdemonstratingstrongEnvironmental,SocialandGovernance(ESG)practices.

Chelsea Santucci Greenovation Awards: BostonScientificsitesin DoradoandMapleGrovewere honoredfortheirenvironmental performanceandsustainability effortsbyKimberly-ClarkProfessional.

Double Wins: Greenovation Award

OurteamsinDorado,PuertoRicoandMapleGrove,Minnesotareceived2019ChelseaSantucciGreenovationAwardsforresultstheyachievedasparticipantsinRightCycle, thefirstlarge-scalerecyclingprogramfornon-hazardouslaboratoryandindustrialwaste.Throughanintensiveefforttocollectpreviouslyhard-to-recyclenitrilegloves,theBostonScientificteaminDoradodiverted12,385poundsofglovesfromlocallandfillsandwonGreenovationhonorsforthesecondyearinarow.InMapleGrove,ouremployees collectedenoughnontraditionalwaste—glovesaswellassingle-usegarments,hoodsandbootcovers—todivert35,500poundsofwastefromlandfills,winningGreenovationrecognitionforthefifthconsecutiveyear.

TheGreenovationawardswereestablishedin2013andrenamedin2015inhonorofChelseaSantucci,aformerKimberly-ClarkProfessionalemployeewhowasinstrumentalincreatingtheRightCycleprogrambeforedyingofcanceratage26.

Ariel Gonzalez, Boston Scientific EHS manager in Dorado, Puerto Rico, receiving the Greenovation Award from Daniel Perez, Kimberly-Clark representative.

30%decrease in

water consumption*

80%of total

solid waste recycled

95%of solid waste

diverted from landfills*Compared to 2009 baseline










Green Team Environmental Sustainability InitiativesBostonScientificGreenTeaminitiativesareinspiredandledbyemployeesacrosstheglobe.Everyyear,theyorganizeandimplementprojectsfocusedonreducingthecompany’senvironmentalfootprint andimprovingthecommunitieswhere ourpeopleliveandwork.Theirefforts helptostrengthenourbusinesspracticeswhileraisingenvironmentalawareness and supporting local partners dedicated to caring for our planet.

OurGreenTeamscontinuedtoembracesustainabilityin2019.InKerkrade, Netherlands,employeescollectedplasticlidsanddonatedtherecyclingrefundstotheRoyalDutchGuideDogFoundation(KNGFGeleidehonden).Milan, Italy employeesorganizedaninitiativeto eliminatecomplimentarywaterbottlesfromworkplacecommonareas.Similarly,weeliminatedwaterbottlesinmeetingroomsandkitchensinallofourLatin Americasalesoffices.TheWarsaw, Poland GreenTeamledanefforttoinstallwaterdispensersforemployeesandorganized aWorldEnvironmentDaythatincluded acleanupdayatalocalpark.

Environmental Wins in MinnesotaAnewlyorganizedGreenTeamin Minnetonka, Minnesotamadeitsmark withaseriesofprojects.Theystarted anonsitevolunteergarden,successfully implementedacampaigntoeliminateonsitedisposablecupuseandhelda firstannual“Ecolympics”toeducate employeesabouttheenvironment.In May,theteamcompletedautility-funded energyauditthatresultedinaninitial 5percentreductioninelectricityuseand 17percentdecreaseinnaturalgasuse.TheMinnesotaSafetyCouncilrecognized theteam’seffortswithaMeritoriousAchievementAward.

Cork Green Team Takes to the ShoresWiththe2019motto“OurPlanet,Our Waters,”theCork, IrelandGreenTeammembersfocusedonmakinglocal shorelinescleanerandsafer.TheteampartneredwiththeCorkWaterHarbourKeeperstoofferanemployeeeducationprogramabouttheenvironmentalimpactofsingle-useplastics,thenorganized volunteersfortwolocalcleanupevents. AttheBlackrockShorelineCleaninJune,theypickeduplitteralongastretchofshoreespeciallypopularwithwalkers andrunners.InAugust,atCarrigrenanbeachinLittleIsland—wherewater pollutioncanmakeswimmingunsafe—theyturnedoutwithfamilyandfriends toclearthehighvolumeofwaste washedashore.

Clean and Green in ValenciaTheBostonScientificGreenTeamin Valencia, Californiadevotedtheirtime tosupporttwoambitiousecosystem initiatives.InSantaClarita,theyjoined thevolunteerranksofthe10thannualEarthArborDaytree-plantingcrews, takingshovelstothegroundatthecity’sCentralParktoplant10eight-foottrees. InSantaMonica,theValenciaGreen Teamworkedalongsidemorethan13,500volunteers for the 35th annual Coastal CleanupDay,aneffortthatdiverted 30,165poundsofwastefromtheaquaticecosystemsofoceansandwaterways.

Keeping Our Planet Clean

In2019,BostonScientificemployeesvolunteeredtheirtimetosupporteffortstopreservebeachesandhabitatsandprotectlocalecosystems.GreenTeamsalsodevelopedenvironmentaleducationcampaignsandintroducedadditionalgreenpracticeswithinthecompany.










Our Practices52 Compliance,EthicsandIntegrity

55 Developing Innovative Products

57 Innovation Initiatives

58 QualityandSafety

61 SustainableSupplyChain

62 ResponsibleMarketing

62 CustomerRelationshipManagement

63 PackagingandLabeling

64 SupportingSmallBusinessand SupplierDiversity

Boston Scientific employees help inspire the next generation of innovators through the Little Doctors program in Guangzhou, China.

Every day, Boston Scientific is... committing to responsible practices.










Ourbusinesspracticessupportand ensureourcompany’sworldwidefocus onquality,safetyandsustainabilityas wedelivermeaningfulinnovationsthatmakeadifferenceinpatients'lives.We operatewithacultureofintegrity;webelieveinstrongcorporategovernance;andweinsistonimpeccableethicsandregulatorycompliance.

Compliance, Ethics and IntegrityBostonScientificemployeeshaveasharedcommitmentto: Acthonestlyandethicallyinallcompanymatters

Protecttheprivacyofpatients,customersandemployees

Treatoneanotherwithrespectand fairness

Holdoneanotheraccountabletoensurequalityinallthatwedo

OurGlobalComplianceteamprovidesemployeeswiththeresourcesandtrainingtheyneedtodobusinesswithintegrity,treatcustomersandsuppliersfairly,andreportethicsconcernswhentheyarise. LedbyourChiefComplianceOfficer,theteamcollaboratesacrossthecompanytomonitorouractivitiesandperformance.TheChiefComplianceOfficerreports quarterlytotheAuditCommitteeofourBoardofDirectorsandmorefrequently as needed.

Code of Conduct for Employees and Channel PartnersEveryBostonScientificemployeeis required to read and understand our CodeofConduct,whichisthefoundationforallofourbusinesspracticesand relationships.Employeesalsocompletemultiplemandatorytrainingcurriculumsthatexplaincompanypoliciesand corruption-andcompliance-relatedrisksandpointthemtoresourceswheretheycanreportconcerns.Ourtrainingoffersscenario-basedcontenttohelppreparepeopletorespondethicallytoissuesthatmayariseintheirdailywork.

Theglobalmarketplaceinwhichwe competeisadvancingrapidly,and ourworkforcesinmanycountriesare continuallyadaptingtonewdevelopmentsintechnology,publicpoliciesandthe environment.Inaworldofconstantchange,it’sincreasinglyimportantthatweprovideourpeoplewithclearguidanceabouthowtohandleethicalchallenges.In2019,wecompletedayear-longefforttoupdate theBostonScientificCodeofConduct.ChangesrangefromadditionallanguageaboutourCorporateSocialResponsibility(CSR)commitmenttoexpandedprovisionsonconflictsofinterestandpatientanddataprivacy.TheupdatedCodeofConduct wentintoeffectonJanuary1,2020.Itisavailableonlinein21languages.

Code of Conduct Changes

The2020updateofourCodeofConductincludes: NewlanguageaboutCSR—whatitmeansforusatBostonScientificandour responsibilityasaglobalcitizen

Greaterspecificityaboutrespecting patient, customer and employee privacy and additionalexplanationsaboutethicalandlegalrequirements

Newlanguageabouttheimportanceofmaintaining a safe and healthy work environment andwhatthatmeansinpractice

Additionalemphasisondata privacy and protecting confidential company information

Expandedinformationonconflicts of interestandpotentialconflictsthatmustbe disclosed

Ourcompliancetrainingiscomprehensive. Itincludescustomerinteractionstraining toprovideguidanceonthelaws,policiesandprocessesforworkingwithlicensedhealthcareprofessionalsintheU.S.Thecurriculumalsoincludesanti-corruptiontrainingthatexplainscompliancerequire-mentsforinteractingwithhealthcare professionals,publicofficialsandotherthirdparties,includingchannelpartners(e.g.,distributors,dealersandagents)outsidetheU.S.

Additionalglobalethicsinitiatives includesexualharassmenttrainingfor all our salesforcemanagersaswellas trainingforourHumanResourcesteamonlocalandnationallawsthatgovernemploymentcompensation,sexual harassmentanddiscrimination.

Our Practices

https://www.bostonscientific.com/content/gwc/en-US/corporate-social-responsibility/practices/compliance-ethics.html










TheBostonScientificChannelPartnerCode of Conduct details our expectations forchannelpartnersdoingbusinessonourbehalf.AllchannelpartnerscompletemandatoryonboardingtrainingaswellasannualethicstraininginwhichtheypledgetoadheretoourCodeofConduct.They arealsorequiredtoabidebynational anti-briberyandanti-corruptionlaws,suchastheU.S.ForeignCorruptPracticesActandtheU.K.BriberyAct.Ourthird-partyprogramtomonitorandsupportchannelpartners includes onsite auditing and other proceduresthatverifytheircompliancewithourrequirements.

Compliance ProgramStrongalignmentwiththeBostonScientificCode of Conduct requires a shared sense ofintegrityamongemployeesthroughoutthecompany.Wehaveacomprehensivecomplianceprogramtoprevent,detect andrespondtoanyconductorsituationthatdoesnotfullyconformwiththeCodeof Conduct.

Advice LineAsstatedintheBostonScientificCodeofConduct,allemployeesareresponsible forimmediatelyreportinganysuspectedviolationofthecodeorcompanypolicy.

In2019,weexpandedeffortstopromoteour Advice Line through an internal campaign(seesidebar).Thetoll-free serviceisoperatedbyathirdpartyand isavailable24hoursaday,sevendays aweek,inmultiplelanguages.

OurNon-RetaliationPolicyisanessentialcomponentofourComplianceProgram. Itprohibitsanyformofretaliation,direct orindirect,againstanindividualwhoraisesa concern in good faith. This protection extendstoanyonewhoassistswith,orcooperatesin,aninvestigationorreport ofmisconduct.

GovernanceTheBostonScientificBoardofDirectorsandExecutiveCommitteeoverseeallaspectsofourroleasacorporatecitizen.Theseleadersanddirectorsplayacriticalpartinimplementingguidelinestoensureweactethicallyinourbusinesspractices,complywithalltaxandbusinesslaws andregulations,andremaintransparent in our reporting.

TheBoardmaintainschartersforits governingcommittees,whichmeet regularlytodiscusstheirrespectiveareas offocus.TheBoard’scommitteesin2019weretheAuditCommittee,Executive CompensationandHumanResourcesCommittee,FinanceCommittee,and NominatingandGovernanceCommittee.

“ Our caring value reminds us to uphold the Boston Scientific mission in a way that is fair and considerate to everyone. This includes treating our customers, colleagues and competitors with respect. It also means always acting with integrity and ensuring our business decisions and relationships embody that integrity.”

— Desiree Ralls-Morrison, Boston Scientific Senior Vice President, General Counsel and Corporate Secretary

New Communications Initiatives

Welaunchednewglobalemployee communicationsinitiativesin2019to increasetransparencyandexpandaware-nessofourcomplianceactivitiesandresources.OurglobalBostonScientificnewsletterincludesan“IntegrityCorner”segmentthatfeaturesreal-world examplesofethicalchallenges,describeswhathappenswhenanethicsconcernis reportedandanoverviewofcomplianceactivity.Wealsointroducedan“Open

Doors”campaigntohelpmanagershandleethicsissuesraisedbytheirdirectreports.Inaddition,weconductedanall-employeeethicssurveytogaugeemployees’understandingof—andconfidencein—howthecompanydealswithethicalconcerns.Theresultswerereportedacrossthecompanyandwillinformfuturecomplianceefforts.

Boston Scientific Chairman and CEO, Mike Mahoney, participating in an integrity awareness event at the Marlborough, Massachusetts global headquarters in 2019.


In2019,ourBoardandstockholders approvedandadoptedtwoby-law provisionsthatreflectbestpracticesandinputfromstockholderengagement.

MajorityVoteStandardinUncontestedElections:Underthisstandard,directornomineesmustreceiveamajorityofvotestobeelected.Anincreasing numberofS&P500companieshaveadoptedthiscorporategovernancebestpractice,andourBoardbelievesitwillenhanceaccountabilitytostockholders.

ProxyAccess:Thisnewby-lawpermitsstockholderswhomeetcertainownershiprequirementstoincludeanomineefordirectorelectioninthecompany’sannual proxystatement.TheBoardexpects thechangewillenhancestockholderrightsandincreasethecompany’s accountabilitytostockholders.

Enterprise Risk ManagementUndertheoversightofourBoardof Directors,thecompany’sEnterpriseRiskManagement(ERM)teamsupports companyleadershipwithbackground and guidance on issues that could affecttheachievementofperformanceobjectives.ERMteammembersanalyzestrategic,operational,financial,legal andcomplianceriskstoensurewecanadapttochallenges,seizeopportunities to help patients and deliver on our commitmentstostockholders.









Aswarranted,theERMteam,ledbyourChiefAuditOfficer,communicateswith theBoardandmanagementtodiscussenterprise-levelissuesthatpresent potentialobstaclestopreservingandgrowingstockholdervalue.Accordingtothecompany’sescalationframework,anymatterthatpresentsapotentialrisktothecompany’sfinancialresults,operationsorreputationisreportedbymanagement tooneormoremembersoftheBoard.

Global SecurityOurGlobalSecurityandResilienceteamprovidessolutionsthatpromoteenterpriseresiliencywhileprotectingourpeople, profitabilityandoperations.Theteam usesacombinationofindustry-standardprotocolsandglobalsituationalawarenesstomanageoursecuritypostureand maintainaGlobalSecurityOperations Center24hoursaday,sevendaysa week.Effortstocontinuouslyprotect andenhancephysicalsecurityand cybersecurityaresupportedbyanetworkofpartnerswhospecializeinfacilities, ITsecurity,environment,healthand safety,globalregulationanddataprivacy.

Thecompany’sglobalsecurityand resilienceexpertsalsoleadabusinesscontinuityprogramandresiliencyworkinggroup.Tomaximizeoperationalresiliencyacrossglobaloperations,ourfacilities arepreparedtoaddressemergency response,enterprisebusinesscontinuityandcrisismanagement.

Political Involvement and ContributionsBostonScientificsupportspublicpoliciesthatpromotediversityandinclusionandimproveouremployees’lives,thepatientsweserveandthecommunitieswhere welive.Weadvocateresponsiblyandtransparentlyforinclusivepoliciesthatfocus on increasing patient access to life-changingandlife-savingtechnologies.Thecompanysharesannual updates on contributionstopoliticalactioncommittees,corporatecontributionstostateofficials,andmembershipsinassociationsthatengageinpublicpolicyadvocacy.

Topromotetheadvancementofsoundpublicpolicy,theBostonScientific CorporationPoliticalActionCommittee(PAC)facilitatesvoluntarypolitical contributionsbyeligibleemployeesandour Board of Directors in accordance withfederallaw.WhilethePACsupportsourcompanyvalues,itacceptsno corporatecontributions.ThePACisrun byagoverningboardofsenioremployeeswhorepresentourprimarybusinesses andfunctions.TheNominatingand GovernanceCommitteeofourBoard ofDirectorsannuallyreviewspolitical contributionsmadebyourcompany and the PAC.

InpartnershipwithourglobalEmployeeResourceGroups(ERGs),in2019we developednewmeasuresforassessingPACcontributionstocandidatesandeffortsthat support our core values. As part of thiswork,weupdatedselectioncriteria toincludeacandidate’scharacterandintegrity.Alldonationsalsonowinclude aletterthatemphasizesourcompany’scorevalues,includingtheimportanceofdiversityandinclusion.

BostonScientificPACcontributions arebipartisanandbasedonthe followingcriteria: Candidate sits on a congressional committeewithjurisdictionoverissuesaffectingourbusiness

Candidate serves in elected leadership withinCongressorinapositionthatshapespublicpolicy

Candidate represents a district or state withaBostonScientificfacility

Candidate’svotingrecordsupportskeyissuesaffectingBostonScientific

Candidate’scharacterandintegrity,includinghisorherstatementsand positions,donotconflictwiththe company’scorevalues

https://www.bostonscientific.com/content/gwc/en-US/corporate-social-responsibility/practices/policy-advocacy.html










Human RightsAtBostonScientific,webelievethat corporationshavearesponsibilityto respectandprotecthumanrights. WesupporttheUnitedNations(UN) International Bill of Rights and its founding principles. The International BillofHumanRightsconsistsof: theUniversalDeclarationof HumanRights,

the International Covenant on Economic,SocialandCulturalRights,

the International Covenant on Civil and Political Rights and itstwoOptionalProtocols.

Weadheretoallapplicablelaborand humanrightslaws,includingthose relatedtoslavery,childlabor,human trafficking,bribery,discrimination, harassmentandpayequity.Werequire thatourthird-partypartnersdoaswell.

Ourcompany’seffortstoupholdandprotecthumanrightsincludesupportforthe rights of children to have access to education,healthcareandprotectionfromcriminalbehavior.Wetakethenecessarystepstoensurethatforcedlaborand humantraffickingdonottakeplacein ourbusinessorsupplychains.Inaddition,weadheretolocalandnationalhumanrightslawsandregulations,including disclosurerequirementsunderthe CaliforniaSupplyChainTransparency ActandtheU.K.ModernSlaveryAct.

Developing Innovative ProductsBostonScientificmaintainsasteadfastfocus on delivering services and solutions to address the healthcare challenges that mattermosttopatientsandcustomers. Wefostercreativityandcollaborationsoourpeoplecancontinuallypursueand developlife-changinginnovations.Ourteamscollaborateinsideandoutside thecompanytodesignandchampion solutionsthatwillmakepatients’ livesbetter.

ApproachOurnewproductdevelopmentteamsfollowtheProductLifeCycleProcess methodology.Thisglobalprocessintegratesbusiness,technicalandquality-systemtaskstosupportauniformandtransparentdevelopmentapproachcompanywide.Theresultisarobustcapacityfordrivingbreakthroughideasfromconceptthroughcommercializationtoproductend-of-life.

Wehaveresearchanddevelopment (R&D)sitesintheU.S.,PuertoRico, EuropeanUnion,CostaRica,Indiaand China.Someofthesesitesalsoserve asR&DCentersofExcellencewith specificfocus,expertiseandcapabilitiesthataresharedacrossourglobal developmentnetwork.

Pre-Clinical SciencesBostonScientificconductsextensivepre-clinicalresearchintothesafetyandefficacyofourmedicaldevicesbeforeprogressingtohumanclinicaltrials.Ourpre-clinicalresearchandsciencepoliciesset stringent standards that govern our trainingpractices,producttestingandregulatorycompliance.

Biocompatibilityandtoxicologyplaya pivotalroleinmedicaldevicedevelopment.In2019,weexpandedourGlobalBiocom-patibilityandToxicologygrouptoadvanceourproductdevelopmentexpertise,streamlinecapabilitiesandimproveouragilityinrespondingtoregulatorychanges.Thisexpansionwillcontinuein2020 toreflectongoinginnovationsinthe company’sproductdevelopmentpipeline.

Ensuringthatwemeetthehighest safetystandardsinallnewproductsandtherapiessometimescallsforanimal testinginourR&Defforts.Whenweusenewmaterialsinmedicaldevices,theU.S.FoodandDrugAdministration(FDA)mayrequireevidenceofpre-clinicalanimal testingbeforestartinghumanclinicaltrials.

BostonScientificiscommittedtothehumanecareandtreatmentoflaboratoryanimals.Weusealternativetestingwhen-eversuchmethodsarefeasible,scientificallyvalidandappropriate.Ourpre-clinicalresearchpersonnelarehighlytrained professionalswithmultiplecertifications,andourfacilitiesmeetorexceedapplicable lawsandregulatoryrequirements,guide-linesandstandards.Weareroutinelyauditedbyinternalexpertsandrelevantgovernmentagencies,includingtheFDA,U.S.DepartmentofAgriculture(USDA)andtheAssociationforAssessmentandAccreditationofLaboratoryAnimalCareInternational(AAALAC).

OurpracticesreflectthebasictenetoftheInternationalBillofHumanRights:

“ All human beings are born free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood.”

UN International Bill of Rights










Clinical TrialsScientificallyrigorousclinicaltrialsandthedatatheygenerateareessentialtodocumentthesafeandeffectiveuseofour products. An internal Clinical Data Task Forceleda2019efforttostrengthenouradvancedanalyticscapabilitiesbyadopting unifiedtrialdatadefinitions.Wealso expandedtheinformationtechnology infrastructure that supports all clinical trials.Withasignificantinvestmentinnewresearchtools,weimplementedourstrategytomeetandexceedEuropeanUnionMedicalDeviceRegulation(EUMDR)standards.Wealsomadeoperational enhancementstosupportEUGeneral DataProtectionRegulation(GDPR) complianceandInternationalOrganizationforStandardization(ISO)excellence.

Alsoin2019,wepilotedaninitiative,calledthestart-upCenterofExcellence(COE),toidentifypracticesusedintheearlieststagesofsuccessfulclinicaltrialsandapplythemseamlesslyacrossalltrials.Thenewframeworkwillsupportfuturetrialstart-upsthroughacentralizedCOEteamofstart-upexpertsandprovenbestpractices.

We conducted 115 active trials in 2019, enrolling nearly 5,000 patients globally.

“ More than 40 years of experience in developing medical devices has shown us that the path to innovation is complex. The collaboration between Mayo Clinic and Boston Scientific supports our shared goal of advancing patient-centered innovation.” — Mike Mahoney, Boston Scientific Chairman and CEO

Accelerating Innovation Through Meaningful Collaboration

To solve the toughest healthcare challenges,werelyonourabilityto iteratequickly,collaborateandtake informedriskswhileensuringthat qualityandpatientsafetyareour primaryfocus.Fornearlyadecade, engineeringandclinicalteamsfromBostonScientificandtheMayo Clinichaveworkedside-by-side todiscoveranddevelopnew life-changingsolutions.

In2019,theMayoClinicandBoston Scientificannouncedanewjoint innovation accelerator called Motion Medical.LocatedinRochester,Minnesota,Motion Medical focuses on developing minimallyinvasivetreatmentsfor conditionsthatimpedequalityand longevityoflife.Thisincludesearly-stagemedicaltechnologiesforinterventionalcardiology,heathrhythmmanagement, endoscopy,neuromodulationandurology.

Gianrico Farrugia, MD, president and CEO of Mayo Clinic, and Mike Mahoney, chairman and CEO, Boston Scientific, at the Motion Medical ribbon cutting ceremony.










Breakthrough Ideas Innovationcancomefromanyone andanywhereinthecompany.The annualBostonScientificImagineIF programtakesaventure-styleapproach tofundingboldideasfromour employees.In2019,thecompany fundedsevennewprojectsthrough thisprogram,includingArtificial Intelligence(AI)-drivenalgorithmsto improvediagnosticprocessesanda machine-learningmodeltoanalyze manufacturingandtestingpatterns. Since2014,ImagineIFhasresultedin 52fundedprojectsandmorethan20 patentfilings,allaboveandbeyond theongoingworkofourresearchanddevelopmentteamsandplanned product pipeline projects.

Recognize Success Atthe12thannualBostonScientificRecognize Success event,wecelebratedthecollectiveworkofthousandsofouremployees.Morethan50leadersand theirteamswerehonoredfortheirroles inimprovingquality,patientcareand valueforthebusiness.

Develop Excellence Everyyear,our Recognize Development ExcellenceprogramidentifiesandrewardsBostonScientificcross-functionalteamswhoworktogethertodevelopmeaningfulmedicalinnovationsforcustomers and patients.

Idea Portal Weinviteoriginalideasfromcustomersandinnovatorsoutsideofthecompany.In2019,ourexternalIdea Portal received morethan80submissionsfromphysiciansandacademicinstitutionsworldwide.Twoinnovatorswereselectedtoentermedicaldeviceexploratoryprograms.

“ The Connected Patient Challenge fosters dialogue and strengthens relationships in the digital health community that will accelerate the pace of change. The energy of the exchanges will fuel our continued commitment to enhance patient care — that is the most satisfying outcome of all.”

— Jodi Euerle Eddy, Boston Scientific Senior Vice President and CIO

Digital Health InSeptember2019,BostonScientific,inpartnershipwithGoogle, launchedthefifthConnected Patient Challenge. This external innovationcompetitionfocusedonfuturedigitalhealthsolutionsthat canmanagechronichealthconditions.Inventorsandentrepreneurs uploadedtheirproposals,witharecordnumberofentrantssubmitting newproductideas.TheNutrimedytelenutritionplatformwonthe challenge.BreathResearchreceivedrunner-uphonorsforitsmobile technologytodetecttheearlysignsofrespiratoryattacks.

Innovation Initiatives

https://innovation.bostonscientific.com


Digital HealthAdvancesmadebyourDigitalHealthteamsallowustosecure,connectandusedatainnewwaystobenefitpatientsandcustomersthroughpredictiveanalytics and tools for care coordination. One exampleofthisworkistheAIbehind our HeartLogic™ Heart Failure Diagnostic. Thefirstandonlydiagnosticofitskind,HeartLogiccanpredictworseningheartfailureeventsweeksbeforetheyhappen,givingphysicianscriticaltimetoact. Wealsomadenewprogressinpain managementthroughourpartnership withIBMResearch,usingpatientdata todevelopanobjectivemeasurefor painthatwehopewillleadtohighly personalizedtherapies.

Ourdigitalhealthofferingsalsoinclude safeandsecuremethodologiesfor smartermanagementofpatientdata. WedevelopedtheBostonScientific MyLATITUDE™appsopatientswith subcutaneousimplantabledefibrillators(S-ICD)caneasilymonitortheirheart dataonpersonalmobiledevices.We have also equipped healthcare providers withtoolsandapplicationstohelpthemoptimizetheircareprocessesbyquicklyandsecurelyintegratingtheirdata.









“ This is the true promise of digital health: a future in which connected smart devices, the Internet of Things and predictive digital diagnostics come together to drive better, faster actions for providers and patients alike. Stay tuned… the future is nearer than you think.”

— David Feygin, Boston Scientific Chief Digital Health Officer

2019 Innovation and Product Awards

Edison Awards: TheBostonScientific LithoVueEmpower™Retrieval DeploymentDevicewonsilver,and theAXIOS™StentandElectrocautery EnhancedDeliverySystemearned bronzeforBestNewProductsinthe Medical Fieldcategory.

Shingo Prize: OurCoyol,CostaRica facilityreceivedthe2019ShingoPrize for operational excellence and demonstratingacommitmentto continuousimprovement.

Top 100 Global Innovator: Boston ScientificwashonoredbyDerwentas aTop100GlobalInnovatorforthe thirdconsecutiveyear.

MDEA (Medical Design Excellence Awards): OurLithoVueEmpower™Retrieval DeploymentDevicewonsilverfor GastrointestinalandGenitourinary Devices;theEluvia™Drug-Eluting VascularStentearnedbronzeintheDrug-DeliveryandCombination Productscategory.

Quality and SafetyInnovative,high-qualityandsafeproductsthatbreaknewgroundcanmakeallthedifferenceinpatientoutcomes.We continuallystrivetoexceedexpectationswithcustomer-centric,qualitysolutionsthattransformpatientlives.

Ourglobalqualityandsafetyeffortsaresupportedby: QualitySystemstrainingforallemployees

AQualitymasterplanthatprioritizesqualityimprovementprojects,leadingtohigherqualityproductsandbetterpatientoutcomes

OurglobalQualitysystemthatintegratescustomerfeedbackandregulatory requirementsintoourprocesses

TheBostonScientificBest4strategy (seenextpage)fordeliveringindustry- leadingperformance

Ourcommitmenttoqualitybegins withtheone-lineQuality Policy that ishighlyvisibleinourfacilities:

“ I improve the quality of patient care and all things Boston Scientific.”

https://edisonawards.com

https://edisonawards.com/winners2019.php

https://edisonawards.com/winners2019.php

https://www.mdeawards.com/en/2019-mdea-winners.html












Best4 Strategy

Thequalitymaterialsweusearevitaltoourmanufacturingdecisionsaswedevelopsafeandeffectiveproducts.Teamsacrossthecompanycarefullyassesscomponentanddevicematerialsandconsiderarangeoffactors,fromefficiencyandavailabilitytoworldwidemedicalandenvironmentalrequirementsandregulations.

Strategic Quality Process (SQP)OurmanufacturingprocessrequirementsreflecttheBostonScientificCorporationQualityPolicyandourSQP,whichevolvesyear-over-year,andencompasses:

Best4 underpins every Boston Scientific process, including product development.

Ourteamsrelyonaglobaldesigncontrolsprocess,riskassessmentandusabilityengineeringtocreatesafeandeffectivesolutionsfromnewtechnologies.Ateverystageofdevelopment,wearefocused ontheunmetneedsofpatientswhowillbenefitfromourproducts.Forexample,employeesareencouragedtospend timeinthefield,observingprocedures andtalkingwithpatientsand healthcare providers.

Operationalstrategy Howweexecuteourwork Ourpursuitofcontinuousimprovement Howwemeasureperformance Recognitionandengagement

Everymanufacturingsiteacrossthe businessdevelopsitsowncustomized SQPtosupportthefacility’sfocusand performanceobjectives.Thecohesion ofqualitywithinourcultureisreinforced byconsistent,directlinkagesbetween individualsiteSQPsandouroverarchingcorporateSQP.

“ Our Best4 Strategy ensures patient safety is always our top priority.”

— Roz Burke, Boston Scientific Senior Vice President, Global Quality and Regulatory

Best Culture: Together,wesustainaculturethatmakestheQualityPolicyrealforevery employee.Wereinforcetheimportanceofeveryone’sroleinimprovingpatientlives, andwesustainadiverse,winningqualityteamthatlivesourcorevalues.

Best Agility: Weaddvaluebyreducingcomplexity,removingobstaclesandadaptingtochangingbusinessneeds.Thismeanshavingintentionalsimplicityinoursystemsaswell asleanpracticesandtherighttechnologyforprocessefficiency.

Best Performance: Forourteams,bestperformancemeansdevelopingandmakingthe bestproducts,servicesandsolutionsforpatientsandcustomers.QualitybyDesignandContinuousImprovementarecorefoundationsofthiswork.

Best Compliance: WefollowandcomplywithgloballawsandregulationswithoneglobalQualitySystem.Thisworkincludesongoingriskmitigationandaneffectivetransitionto theEUMDR.

OurQualityPolicyiscomplementedby our Quality Mission,whichstates:

“ We exceed expectations with customer-centric quality solutions that transform patient lives.”










Our Latest Quality InitiativesWetakeontargetedqualityand complianceprojectseveryyear withafocusoncontinuous improvement.Highlightsofour 2019accomplishmentsinclude:

Implementingaglobalusability,riskmanagementanddesign-controls processtoharmonizebestpractices forproductdesignandperformance

Completingworktoprepareour QualitySystemformeetingnewEU MDRrequirements

Further supporting acquisition integrationactivitieswiththelaunch ofanonlineQualityandOperationsAcquisitionIntegrationRoadmap

Strengtheningourmedicaldevice cybersecurityprotocolsinaccordancewithFDAguidance

Investinginadditionalimprovements inPost-MarketQualityAssurancethatfurtherenhanceourPost-Market Surveillancecapabilities

Cultivating Quality in Our Culture with Everyone Makes an Impact Events

Our annual Everyone Makes an Impact events take place at Boston Scientific sites around the world. These onsite employee gatherings bring our quality policy to life through the stories and experiences of patients who have benefited from our devices.

Indira Quirós: InHeredia,CostaRica,IndiratalkedwithourteamabouthowshesufferedfromWolff-Parkinson-Whitesyndrome,1 a rare congenital heart disorder involving an extra electrical pathwaythatresultsinabnormalheartbeat,withsymptoms includingtachyarrhythmiathatcouldresultinsuddendeath. Sheunderwentaprocedurethatusedthreedevicesmadeby ourHerediateam.Indira’sheartsurgeonsusedtheDynamicXT™andVIKING™catheterstodiagnosehercondition,thenimplanted theBLAZER™IIcathetertotreathercardiacablation.Shetraveled fromNicaraguatomeetthe140employeeswhoworkedtogetheronthedevicesthatdramaticallyimprovedherprognosisandqualityoflife.Indirahasresumedherregularactivitiesandisenjoyingahealthy,activelifewithhertwochildren. Indira posing with the 140 Boston Scientific employees who worked on the devices used in her diagnosis and treatment.

Meho Temim: AfterbeingdiagnosedwithSicksinussyndrome,2 agroupofheartrhythmproblemsinwhichtheheart’snaturalpacemakerdoesnotworkproperly,MehowasimplantedwithaBostonScientificAccolade™MRIELpacemaker.ForthisdedicatedmemberofourElectrophysiologydevelopmentteaminArdenHills,Minnesota,thesuccessfultreatmenthitclosetohome.“It’sanicefeelingtoknowyouhaveadevicethatyoucancounton,”hetoldhiscolleaguesatour2019eventinMinnesota.“MycoworkersandIbuiltmypacemakerwiththehighestqualitystandardsintheworld,andI’mproudofthat.” Meho being interviewed at the Arden Hills, Minnesota Everyone Makes an Impact event by David Thompson, Boston Scientific Vice President, Clinical Solutions, Cardiac Rhythm Management.

1 "Wolff Parkinson White Syndrome." Rare Disease Database. https://rarediseases.org/rare-disease/wolff-parkinson-white-syndrome/

2 "Sick sinus syndrome." Mayo Clinic. https://www.mayoclinic.org/diseases-conditions/sick-sinus-syndrome/symptoms-cause/syc-20377554

https://rarediseases.org/rare-diseases/wolff-parkinson-white-syndrome/

https://www.mayoclinic.org/diseases-conditions/sick-sinus-syndrome/symptoms-causes/syc-20377554










Sustainable Supply ChainOurmanufacturingandsupplychain teamsleadthecompany’seffortstoplan,source,manufactureanddistributemorethan15,000productswiththepotential toimproveorsavelives.Inthiswork,wecollaboratewithleadingsupplierstoprovideareliablesupplyofhigh-qualityproductstocustomersandpatientsinallregionsglobally.Weuseastrategicqualityprocesstoprioritize,executeandmonitorourmanufacturingandsupplychain.

Tomaintainthehighest-qualitycomponentsupply,wetakearigorousriskmanage-mentapproachasweselectsupplychainpartners.Oursourcingteamassesses risktoensurethatlong-termsuppliersshareourqualitystandardsandcustomerfocusaswellasourvalues.Thelogistics expertsonoursupplychainteamfacilitateplanning across divisions and regions as theymonitorprogressandadapttomeetevolvingcustomerandpatientneeds.

Setting Industry StandardsBostonScientificcollaborateswithtradeassociationsandregulatorybodiesaroundtheworldtosetnewstandardsinqualityandremaininformedandagileaboutnewandchangingregulatoryrequirements. Wemakeitaprioritytohelpinfluenceindustryandregulatoryapproachestoqualityaswesharethebestpractices behindourpatient-focusedsystems.

FDA Digital Health: Through the FDA DigitalHealthPrecertificationProgram,BostonScientificcompleteda2019 assessmentthatconfirmedthehighqualityofourDigitalHealthproduct developmentprocess.Asaresult, wenowhaveaccesstoprogram benefitssuchasexpeditedregulatory approvalpathwaysfornewand innovative devices.

Industry Leadership: In2019,we continuedtoidentifyandprioritize opportunities to expand the leadership andinfluenceofBostonScientificinpriorityareas.Theseincludemedicaldeviceuserfeenegotiations,regulatorysubmissioninitiativessuchastheFDASaferTechnologiesProgram(STeP), andcollaborativeeffortssuchastheNationalEvaluationSystemforhealthTechnology(NEST).

FDA Case for Quality: As a participant intheFDACaseforQualityVoluntaryImprovementProgram(VIP),fiveBostonScientificmanufacturingsiteshave undergonequalitysystemmaturity appraisalstodrivecontinuousimprove-mentandorganizationalexcellence. Significantbenefitsoftheprogram includeexpeditedmanufacturing changeapprovalsandastreamlined FDA inspection schedule.

Measuring and Monitoring Quality and Compliance EffectivenessWeregularlyconductinternalaudits toverifythatourGlobalQualitySystemconformstointernalandexternalrequire-mentsandiseffectivelyimplemented andmaintained.Asweplanandexecuteourinternalaudits,weconductfollow-upactivities,includingre-auditingprior observationsandverifyingactionstaken.

Externalregulatoryagenciesalsoreviewourperformancetoensurequalityandcompliance,withthefollowingresults in2019:

Externalregulatoryinspections* 87 Percentexternalregulatory inspectionsresultinginnofindings* 79%

Averagefindingsperexternal regulatoryInspection* 0.35

AveragefindingsperFDAinspection 0

* Includes Notified Body, Competent Authority, FDA










Product PerformanceBostonScientificreviewscustomer feedbackandmonitorstheirexperienceswithourdevices.ThisinformationprovidesvaluableinputsforourQualitysystem aswellasfutureproductiterationsandinnovations.WefollowourCorrective and Preventative Action process to collect andanalyzedatathatcanhelpidentify rootcausesforpotentialqualityand complianceissues.Ourteamsarethen abletoaddresspotentialproblemsandpreventfutureissuesorrecurrences.Weinitiatefieldactions(productadvisories,productadvisoryupdates,product retrievals),includingfollow-upand closure,toensurethatregulatoryor fieldsafetyissuesareresolvedquickly andeffectively.

In 2019, Boston Scientific had zero Class I recalls and zero open FDA warning letters.

Responsible MarketingOurcompanyhasafirmcommitment toethicalandresponsiblemarketing andpromotionthroughoutthebusiness. Our Code of Conduct and all other related employeepoliciesemphasizetheimpor-tanceoffairandhonestcommunicationswithpatientsandcustomers.

In 2019, we spent nearly $1 million on company-wide programs that provided almost 13,000 hours of training for customer-facing employees on a range of integrity topics.

Thecurriculumforthesesessionsincludedidentifyingandavoidingconflictsof interest,respectingintellectual property,fairandhonestmarketing practices and appropriate interactions withphysiciansandgovernmentofficials.

Customer Relationship ManagementOurachievementsarerootedinadeepcommitmenttohelpinghealthcare providersmeetpatientneeds.The BostonScientificCustomerRelationshipManagement(CRM)teamtakesthelead inourworktomonitorandlearnfrom customersatisfactionfeedback.Metricsfromourcustomersurveysprovidecrucial informationonwhatwearedoingwell andwhereweneedtomakeimprovements tobetterserveourcustomers.Ourindustry- leadingCRMpracticesintheUnitedStatesarenowexpandingtootherregionsacrosstheglobe.

InMarch2019,theBostonScientific CustomerServiceorganizationwas honoredwiththeCustomerRelationshipManagementInstituteLLC(CRMI) NorthFaceScoreBoardAward(NFSB) forachievingexcellenceincustomer serviceinthe“Overall”and“CustomerService”categories.


Feature PatientHighlight

A Message toOur Stockholders

FinancialHighlights

Our Mission andCore Values

Boston Scientificat a Glance

Boston Scientificby the Numbers

Corporate SocialResponsibility

Our Patients Our People Our Planet Our Practices Non-GAAPReconciliations

Packaging and LabelingPackaging practices at Boston Scientificreflect our obligation to protect medicaldevices during sterilization, distribution,storage and use. We collaborate withour customers and conduct usabilityassessments to ensure we are meetingtheir needs and requirements.

As the business makes advances withsustainability, a global SustainabilityPackaging and Labeling SteeringCommittee confers with the BostonScientific CSR Council to develop ourpackaging strategy and goals. Ourpackaging and supply chain practicesinclude optimizing design, reducingwaste and limiting emissions fromshipping. In addition, our packagingteams use case studies to communicatekey packaging objectives and furtherengage our people as they documentand share successful practices. In2019, we expanded the company’ssustainability case study portfolio bymore than 50 percent from 2018.

We continually assess our labelingprocesses for new ways to meetcustomer needs while also reducing ourenvironmental footprint. In parallel witha focus on sustainability, BostonScientific has controls in place to verifythat our product labeling meets globallabeling regulations and comprehensiveinternal quality standards.

In 2019, Boston Scientific was proud tojoin the Healthcare Plastics RecyclingCouncil (HPRC), a consortium of industryleaders dedicated to boosting plasticsrecycling efforts in clinical settings. As amember of the HPRC, Boston Scientificshares innovations and collaborates withpeer companies to support increaseduse of recycled material, remove barriersto waste reduction and educate themarket about sustainability.

2019 Snapshot

Approximately 140 tons of packagingwaste diverted from landfills

3,560 pallet shipments avoided

14,500 acres of forest projected to besaved from CO2 emissions

750 products repurposed duringdevelopment

“We are delighted to haveBoston Scientific join ourefforts. As an industryleader, Boston Scientifichas a passion for solvingthe challenges that mattermost. The company ismotivated by a deep caringfor human life and a strongsense of corporate andenvironmentalresponsibility.”— Peylina Chu, Director of theHealthcare Plastics RecyclingCouncil (HPRC)

Material Reduction andEnvironmental Stewardship

One of the largest Boston Scientificdistribution centers achieved significantwins in material reduction and environ-mental stewardship in 2019. The teamin Quincy, Massachusetts conducteda review of internal processes andidentified avoidable product wasteassociated with customer-appliedlabels. By implementing more specificinstructions and visual aids, the facilityprevented 11.18 tons of packagingwaste from reaching landfills.


Supporting Small Business and Supplier DiversityMeetingtheneedsofmorethan30millionpatientseachyearrequiresawidevarietyof perspectives. Diverse vendors and suppliersbringnewandinnovativeideastoourbusiness.Theseprofessionalsallowustoapproachchallengesfromdifferentangles,collaboratemoreconstructivelyandbetterservecustomersandtheirpatients.Thisfocusondiversityandinclusion extendsthroughoutoursupplychain.

In2019,weworkedwithmorethan4,600diversesuppliersintheUnitedStates,includingbusinessesthatare: Minority-owned Women-owned Smallordisadvantaged Veteran-owned Service-disabled,veteran-owned LGBTQ-owned Disability-owned

In 2019, we spent $755 million with diverse suppliers, an 18% increase from 2018.

In2020,weareaimingtoincreasethisspendby7percent.Wealsoconductedmorethan200capabilityassessments withdiversevendors.

Our Responsible Supplier StandardsQualityisthemostimportantaspectofoursupplierrelationships.Ourmorethan27,000suppliersthroughouttheworldmeetarobustsetofstandards.The companyactivelyseekssupplychain partnerswhowillconsistentlydeliver industry-leadingquality,reliabilityandvalue.

AlldirectmaterialssuppliersforBostonScientificarerequiredtocomplywith strictqualityrequirements.Weagreetopartnershipsonlywithcompaniesthatshareourcommitmenttoethicalconductandthatareinfullcompliancewithallapplicablelawsandregulations.Toidentifythesebusinesses,weuseastandardizedsupplierperformanceassessmenttool withcriteriarangingfromCSRpractices tostrategicbusinessprocesses.Our mandatoryevaluationprotocolallows ustobuildrelationshipswithresponsibleandhigh-performingsuppliersthat makesignificantcontributionstoourwork.

“ I was born and raised in South Africa, and the importance of diversity has always been apparent to me in every facet of my life. Watching the devastating effects of discrimination has left me with a passion to obliterate this injustice in any way within my power

and influence. Every person should be aware of the direct impact they can make by choosing to support small and diverse vendors in their personal and professional lives.” — Saken Khokhar, Manager, Boston Scientific Supplier Diversity

Fromsourcingmanufacturingmaterials tomanagingthedistributionofBoston Scientificproductstomorethan120 countries,thesepartnersworkwithus to ensure that our products are in the rightplaceattherighttimetoimprovepatient lives.

WeuseaninclusiveprocurementprocessthatinvolvesclosecollaborationwithourDiversityandInclusionteam,inputfromourCSRCouncilandinputfromemployeeresource groups.










ThisPerformanceReportcontainsforward-lookingstatementswithinthemeaningofthefederalsecuritieslaws.Seethediscussionunder“SafeHarborforForward-LookingStatements” in the AnnualReportonForm10-KfortheyearendedDecember31,2019,formatterstobeconsideredinthisregard.Inaddition,pleaseseeourAnnualReportonForm10-Kfora descriptionofourNon-GAAPadjustmentsandthereasonsforexcludingeachitem.

Year Ended December 31,

Total BSC Revenue Growth 2019 2018 2017 2016 2015 5-Year Average

Percentage change in net sales, as reported 9.3 % 8.6 % 7.9 % 12 % 1 % 8 %Less:Impactofforeigncurrencyfluctuations (1.8)% 0.6% 0.1% —% (7)% (1)%

Percentage change in net sales, operational 11.1 % 8.0 % 7.8 % 12 % 8 % 9 %Less:Impactofcertainacquisitionsanddivestitures 3.8% 0.8% 1.2% 2% 3% 2%

Percentage change in net sales, organic 7.3 % 7.2 % 6.6 % 10 % 5 % 7 %

Year Ended December 31, 2019

Rhythm Percentage Change in Net Sales of Reportable Segments MedSurg and Neuro Cardiovascular

Percentage change in net sales, reported 10.0% 3.3% 11.4%Less:Impactofforeigncurrencyfluctuations (1.5)% (1.6)% (2.1)%

Percentage change in net sales, operational 11.5% 4.9% 13.5%Less:Impactofcertainacquisitionsanddivestitures 2.7% 1.6% 4.2%

Percentage change in net sales, organic 8.8% 3.3% 9.3%


Operating Margin 2019 2018 2017 2016 2015

Operating margin, reported 14.1% 15.3% 14.2% 5.3% (3.8)%Less:Non-GAAPadjustments (12.0)% (10.2)% (10.8)% (18.8)% (26.1)%

Operating margin, adjusted 26.1% 25.5% 25.0% 24.1% 22.3%

BasisPointImprovementfrom2018 60

BasisPointImprovementfrom2015 380










http://investors.bostonscientific.com/~/media/Files/B/Boston-Scientific-IR/annual-reports-proxy-statements/annual-report-and-financial-statement-2019.pdf



Less: Impact Less: Impact of of Recent Reported Foreign Currency Operational Acquisitions/ Organic Percentage Change in Net Sales of Reportable Segments Basis Fluctuations Basis Divestitures Basis

Endoscopy 7.5% (1.7)% 9.2% 0.0% 9.2%UrologyandPelvicHealth 13.4% (1.3)% 14.7% 6.3% 8.4%

MedSurg 10.0 % (1.5)% 11.5% 2.7% 8.8%CardiacRhythmManagement (0.6)% (1.8)% 1.2% 0.0% 1.2%Electrophysiology 5.5% (2.0)% 7.5% 0.0% 7.5%Neuromodulation 12.0% (1.1)% 13.1% 6.3% 6.8%

Rhythm and Neuro 3.3 % (1.6)% 4.9% 1.6% 3.3%InterventionalCardiology 8.7% (2.3)% 11.0% 1.0% 10.0%PeripheralInterventions 17.3% (1.8)% 19.1% 11.3% 7.8%

Cardiovascular 11.4 % (2.1)% 13.5% 4.2% 9.3%


Less: Impact of Reported Foreign Currency Operational Percentage Change in Net Sales by Region Basis Fluctuations Basis

U.S. 10.1% —% 10.1%EMEA(Europe,MiddleEastandAfrica) 4.0% (5.4)% 9.4%APAC(Asia-Pacific) 9.9% (2.4)% 12.3%LACA(LatinAmericaandCanada) 3.3% (4.0)% 7.3%

Medical Devices5 8.5% (1.7)% 10.2%

Specialty Pharmaceuticals8 n/a n/a n/a

Net Sales 9.3% (1.8)% 11.1%

EmergingMarkets7 14.1% (5.4)% 19.5%

5 We have three reportable segments comprised of Medical Surgical (MedSurg), Rhythm and Neuro, and Cardiovascular, which represent an aggregation of our operating segments that generate revenues from the sale of medical devices (Medical Devices). We have included BTG’s Interventional Medicine business in our Peripheral Interventions operating segment’s 2019 revenues from the date of acquisition. 7 We define Emerging Markets as the 20 countries that we believe have strong growth potential based on their economic conditions, healthcare sectors and our global capabilities. Periodically, we assess our list of Emerging Markets; effective January 1, 2019, we updated our list of Emerg-ing Market countries. We have revised prior year amounts to the current year’s presentation. The revision had an immaterial impact on prior year Emerging Markets sales. 8 As part of our acquisition of BTG, we acquired a specialty pharmaceuticals business (Specialty Pharmaceuticals). Subsequent to acquisition, Specialty Pharmaceuticals is now a stand-alone operating segment presented alongside our Medical Device reportable segments.












Earnings Per Share 2019 2018 2017 2016 2015 2014

GAAP net income (loss) per share $ 3.33 $ 1.19 $0.08 $0.25 $(0.18) $(0.09)Amortizationexpense 0.44 0.37 0.35 0.35 0.33a 0.29b

Intangibleassetimpairmentcharges 0.07 0.02 — 0.01 0.01a 0.12b

Acquisition/divestiture-relatednetcharges(credits) 0.48 — 0.01 0.09 0.17a (0.03)b

Restructuringandrestructuring-relatednetcharges 0.05 0.05 0.05 0.04 0.05a 0.07b

Litigation-relatednetcharges(credits) 0.05 0.06 0.12 0.37 0.52a 0.49b

Investmentimpairmentcharges — — 0.03 — — —EUMDRimplementationcharges — — — — — —Debtextinguishmentnetcharges(credits) 0.05 — — — 0.02a —Deferredtaxexpenses(benefits) (2.91) — — — — —Discretetaxitems 0.01 (0.23) 0.62 — (0.01)a (0.01)b

Pensionterminationcharges — — — — 0.02a —

Adjusted net income (loss) per share $ 1.58 $ 1.47 $ 1.26 $ 1.11 $ 0.93 $ 0.84

Less:Impactof2018nettaxbenefit3 — 0.07 —

Adjusted net income (loss) per share, excluding 2018 net tax benefit $ 1.58 $ 1.40 $ 1.26

Adjusted EPS growth from prior year 8% 17% 13% 20% 11% 15%

Adjusted EPS growth from prior year, excluding 2018 net tax benefit 13% 11%

5-Year Average Adjusted EPS growth 14%

Adjusted Free Cash Flow (in millions) 2019 2018

Operating cash flow, reported $1,836 $ 310Less:Purchasesofproperty,plantandequipment 461 316Add:Proceedsondisposalsofproperty,plantandequipment 7 14

Free Cash Flow 1,382 8Plus:Restructuringandrestructuring-relatedpayments 66 89Plus:Acquisition-relatedpayments 266 205Plus:EUmedicaldeviceregulationpayments 4 —Plus:SpecialTaxPayments(Refunds/Credits) (42) 977Plus:Litigation-relatedSettlements 330 791

Adjusted free cash flow $2,007 $2,070

YoY Growth (3)%










a Assumes dilution of 21.5 million shares for the year ended December 31, 2015. b Assumes dilution of 23.7 million shares for the year ended December 31, 2014. 3 Full year 2018 adjusted earnings per share was $1.47, which includes a $0.07 net tax benefit for the year. Excluding this net tax benefit of $0.07, our 2018 adjusted earnings per share grew 11 percent. 2019 adjusted EPS growth including the aforementioned 2018 net tax benefit is 8 percent and normalized for the 2018 net tax benefit is 13 percent. Full year 2018 net tax benefit of $0.07 includes our second quarter $0.06 benefit from settling the IRS Stipulation of Settled Issues for the 2001 through 2010 tax years, offset by a fourth quarter $0.05 charge for our tax reinvestment strategy. In addition, the net benefit includes a $0.06 benefit in the fourth quarter for the settlement with the IRS of our 2011 through 2013 tax years.

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