EXPANDING MARKETS, PROFITABILITY

Dow Wilson, President and CEO

Varian Medical Systems

JP Morgan Healthcare Conference

January 12, 2016

Our Vision: To Help Save Millions of Lives Every Year, Around the World

Varian Businesses

Oncology Systems ($2.7B)

Technology products and services for radiotherapy, radiosurgery,

brachytherapy, and services supplied to hospitals and clinics

Market and technology leader

$1B service business

Particle Therapy ($317M)

Proton therapy systems and service

Imaging Components ($605M)

X-Ray tubes, flat panel detectors and software for imaging

equipment manufacturers and system integrators

0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

Series 1

Series 1

FY

2015 G

RO

SS

OR

DE

RS

$3.6

B

Growth Strategies

Go Global

Build Software & Services

Innovate

Commercialize Protons

Operational Excellence

Increase Revenues

Strengthen Profitability

Oncology Systems

Market Environment Growing global cancer burden

Economic driven healthcare transformation – move to affordable, accessible, quality care

Expansion, investment in emerging & frontier markets

Modernization, replacements in developed markets

Service opportunity

Cancer Burden Rising 25 Million People

2012 2030

New Cancer Cases 14.1 Million 24.6 Million

Cancer Deaths 8.2 Million 13 Million

Needed by 2035

Coverage of radiotherapy services according to country as determined by global equipment

databases, an activity-based operations model, cancer incidence, and evidence-based estimates

of radiotherapy need.

20,000+ linacs

Expanded software,

service infrastructure

Greatest need in lower

and middle income

countries (LMIC)

Lancet Reccommendations Call to Action / LMIC Target

By 2020 80% of

countries should

have cancer plans

that include

radiotherapy.

Population Based

Cancer Control

Plans

25% increase

in RT capacity

from 2015 to

2025.

Expansion of

Access to

Radiotherapy

$46B of investment

by 2025 to establish

radiotherapy

infrastructure and

training in LMIC.

Sustainable

Financing to

Expand Access to

Radiotherapy

80% of LMIC to

include RT services as

part of universal health

coverage by 2020.

Align Radiotherapy

Access with Universal

Health Coverage

Varian Market Development

Expanding global team

Partnering to build access to cancer care

Governments

Financiers

Clinicians

Patient advocacy groups

Promoting awareness

Lancet Oncology Commission

Media outreach

The Varian Oncology Portfolio

VitalBeamTM

Directions in Innovation Knowledge-Guided Oncology | Intelligent Treatment Delivery

Advanced Data Analytics

The Next Big Milestone –

High Definition Radiotherapy

Treatment Ideal:

100% of dose to the tumor; 0% to healthy tissue.

INTELLIGENT TREATMENT DELIVERY:

Works in Progress

4π Dose Compression for Lung SBRT

INTELLIGENT TREATMENT DELIVERY:

IMRT

PATIENT 1

PATIENT 2

VMAT HDRS

64 Gy

15 Gy

Courtesy of Ke Sheng, UCLA

Expanding Software Offerings

New Data Analytic Tools

RapidPlanTM

Insightive AnalyticsTM

VelocityTM

QuumulateTM

Infor™ interoperability

EPIC, Cerner, McKesson

Cloud-based offering with SaaS model

FlatIron alliance

ADVANCED DATA ANALYTICS

ADVANCED DATA ANALYTICS:

RapidPlan™ Ramp Up

300+ Orders

3,800 Potential Installs

Disease Site Models

Prostate

Prostate (+lymph nodes)

Head & Neck

Lung SBRT

More Models Coming

KNOWLEDGE-GUIDED ONCOLOGY:

InSightive™ Analytics

50+ Orders

3,800 potential installs

Efficiency tool

Identifies clinical bottlenecks

Streamlines workflow

Lowers cost of care

Increases access to care

ADVANCED DATA ANALYTICS

ADVANCED DATA ANALYTICS:

Iterative CBCT Gaining Clarity

A game changer!

Now we can see soft tissue!

Affordable, quality, real-time alternative

to MR imaging

TrueBeam platform upgrade

~1,200 current installs

INTELLIGENT TREATMENT DELIVERY:

TrueBeam 2.0 Iterative CBCT

Works in Progress

Long Term Oncology

Growth Drivers

$2.7B business

Gaining global share

Largest installed base

$1B in recurring service revenue

Winning product portfolio

Demographics increasing need

Building Momentum

Varian Particle Therapy

Number of

treatment rooms

to increase by

over 4x

Proton Therapy World Market Report (Edition 2015), MEDraysintell.

Patients Treated to 2030

21 | VARIAN PARTICLE THERAPY

Hitachi - 3

IBA - 17

ProNova - 4

Varian - 22

Sumitomo - 1

2015 Treatment Rooms Ordered

Varian Establishing Market Leadership Position

22 | VARIAN PARTICLE THERAPY

Commitment

Varian develops

proton treatment

planning;

provides

information

systems for

proton centers

Varian purchases

ACCEL

Instruments

Superconducting

cyclotron clinical

at PSI

Complete

treatment system

delivered to

Rinecker Proton

Center, Munich

(>1,500 patients)

First US

ProBeam®

system delivered

to Scripps Health

in San Diego

Start of clinical

operation at

Scripps Health in

San Diego

6 orders

Compact launch

Eclipse™ proton

algorithm

Several installs

underway

1990s 2007 2009 2011 2014 2015

History of Proton Program

23 | VARIAN PARTICLE THERAPY

Varian Projects Overview

SCRIPPS PT CENTER 3 Rotational and 2 Fixed Beam Rooms

KFMC-KING FAHD MEDICAL CENTER 3 Rotational and 1 Fixed Beam & 1Eye Tx

UNIVERSITY OF MARYLAND 4 Rotational and 1 Fixed Beam Room

GEORGIA PT CENTER (EMORY) 4 Rotational and 1 Fixed Beam Room

PTC ST PETERSBURG, RUSSIA 2 Rotational Gantries

RINECKER PROTON THERAPY CENTER 4 Rotational Gantries and 1 Fixed Beam Room

UT SOUTHWESTERN MEDICAL CENTER 4 Rotational and 1 Fixed Beam Room

CINCINNATI CHILDREN’S HOSPITAL 3 Rotational Rooms

PAUL SCHERRER INSTITUTE (PSI) 1 Gantry Room

NATIONAL TAIWAN UNIVERSITY

2 Gantries 1 Fixed Beam Room

AARHUS PTC - DENMARK 2 Gantries

UK PROTON THERAPY CENTERS UCLH London - 3 Gantries

The Christie Hospital, Manchester - 3 Gantries

HOLLAND PTC 2 Rotational Gantries 1 Fixed Beam

NEW YORK PTC

3 Gantries 1 Fixed Beam Rm 1 RR

Why We’re Winning……

• Precision IMPT with Pencil-Beam Scanning

• Fastest Patient Throughput

• Varian Best in Class Oncology Product Suite

• Eclipse treatment planning

• ARIA OIS, data analytics

• Cone Beam CT Imaging/motion management

• Commitment to Innovation, Integration

Imaging Components

FY15 Challenges

Panel prices eroding;

FX helping competitors grab share

Lost $50M panel customer to insourcing

SIP market freezing; tenders delayed/stopped

65%

24%

11%

OEMs

Varian

Other

X-Ray Tubes: Units 3% Sales (1%)

42%

30%

28% OEMs

Varian

Other

Flat Panels: Units 2% Sales (7%)

Source: Market Share Estimates based on Varian analysis

2015 PRICE/MIX/FX IMPACT

FY15 Successes

Added MeVis/Claymount components

Gained share in tube aftermarket; VIC team

winning in China

Grew orders >10% in industrial tubes/panels

Imaging Growth Trends

Ongoing growth in diagnostic imaging

Market transforming: analog to digital

Industrial/NDT market expanding; New digital applications emerging

Security/Inspection investments continuing

75,000+ units/yr

2-3% CAGR

1M+ installed units Only about

10% digital

400+ system

integrators

$300M+/yr spent on

film

1,000+ Cobalt

systems to be

replaced

<5% cargo

containers scanned

today

Investment Summary (NYSE: VAR)

Market and technology leader

• Radiation Oncology

• Particle Therapy

• Imaging Components

Favorable demographic/economic/technical trends

Promising product portfolio and pipeline

>$1B recurring revenues from service and software

Strong balance sheet, cash flow, stock buy backs