president & ceo - files.shareholder.comfiles.shareholder.com/downloads/volc... · •...

1

31ST Annual J.P. Morgan Healthcare Conference

January 8, 2013

Scott HuennekensPresident & CEO

2

Today’s presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions which, if they do not materialize or prove correct, could cause the Company’s actual results to differ significantly from those expressed or implied by such forward-looking statements. These risks, uncertainties and assumptions are set forth in the Company’s 424(b)(2) Prospectus Supplement filed December 5, 2012, and in its other filings with the Securities Exchange Commission. The Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Safe Harbor

3

Today

Future

The Volcano Vision

4

• Multi-modality system with >15 applications in the market or development• Over 7,700 installed systems• Approximately 255 direct global sales reps• Strong partnerships with GE, Philips, Siemens, Medtronic, and Covidien

• Market and product line growth opportunities >$5B• 2011 - $344M revenue; 2012 - $382M revenue• Gross margin leverage from Costa Rica manufacturing• Operating margin expansion from SG&A leverage• Strong financial track record for 6+ years as a public company

• Axsun Medical Applications, Ophthalmology driven• Image Guided Therapy products including IVC Filters• Forward Looking IVUS (FL.IVUS) & ICE (FL.ICE) • Optical Coherence Tomography (OCT)• Sync-Rx software modalities

• Solutions for issues facing healthcare systems today = FUNCTIONAL PCI• Physiology & Intravascular Imaging technology and innovation leader• Rapidly growing physiology business in large underpenetrated market • Global IVI market share leader, growing market share

Volcano Highlights

The Precision Guided Therapy

Leader

Base BusinessGrowth

Pipeline/ Internal

Development

Financial Leverage

5

Volcano’s Winning Growth Strategy

Base Business

1

Pipeline/ Internal Development

2

Business ModelExpansion

3

6


• Expand Physiology, IVUS, and Axsun Industrial leadership through innovation

• Expand clinical indications growing penetration & market sizes

• Continue expansion of direct distribution

• Markets currently >$700M, addressable markets >$2.5B

Revenue Growth 11-13% 2013-2017

Base Business

1

7


• Develop new products and markets from existing technologies

• Commercialize existing pipeline –FL.IVUS, FL.ICE, OCT, Crux IVCF, Sync-Rx, Axsun Medical

• Addressable markets in excess of >$1.5B

Push Revenue Growth > 13%


2

8


• Target acquisitions meeting Volcano specific criteria

• Invest, in-license and partner

• Build out therapeutic solutions in focused areas- CTOs- Peripherals – arterial & venous- Structural heart

Augment Growth Above Run Rates


3

9

Volcano’s Growth Strategy to Include 8+ Verticals

Total Addressable Market >$5B

Strategic Expansion Business Model

Expansion

OCT ophthalmology

CTO (FL.IVUS, microcatheters, therapy)Structural Heart (FL.ICE,

Sync-Rx, Crux embolic protection)

Crux IVCF 44556677

>$1.5B >20%Pipeline –Internal Development

Addressable Market Growth

IVI (IVUS, FACT, OCT)

Physiology (FFR, Flow, iFR)

Base Business

Addressable M

arket Size

8+ >$1B >20%

1122 >$2.5B 11-13%

Axsun Industrial 33

Source: Volcano Corporation data on file

10

Building a Formidable Medical Device Company

Expansion add-ons ~$200M in revenue

>8 verticals >$5B addressable markets

#1-2 in each market

Decreased dependence on stable coronary PCI

Base business and pipeline ~$700M in revenue

Crux and Sync-Rx Acquisitions ~$100M in revenue

~$1B in revenue 11-13% growth

Operating leverage

2017

TodayCompany projections

11

Precision Guided TherapyTraditional Non-Invasive Imaging

Delivery Systems & Therapy Devices

Precision Guided Therapy SectorIntra-Body Imaging and Sensing (IBIS)

Medical Device Industry Now

Image Co-reg, AcuNav ICE, Stereotaxis, Mediguide, Hansen

AxiEM EM, PioneerAFIB Ablation

FLIVUS with therapy, Microcatheters, IVCF,

Thrombectomy Catheters, SeeHawkTM, PioneerTM

3D TEE, Corindus, Hansen Traxtal EM, OSS

IVUS, OCT

IGT - SeeHawk

LightLab OCT, Radi FFRMediGuide EM, NavX, ICE

IVUS, ICE, AFIB Ablation

CARTO EM, ICE

Sync RX – Angio+, IVI co-reg, FFR co-reg, Structural Heart aps,

Peripheral aps

Robotics

12

Intra-Body Imaging and Sensing Sector 2006-2021

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2006 2011 2016 2021

Hypertension

Neurovascular Disease

EP - FL.ICE / ICE

Structural Heart

FLIVUS / CTO

Ophthalmology (OCT)

PVD (Imaging)

Coronary IVI (IVUS & OCT)

Coronary FM

~$2,500*

~$1,500*

$864

$332

Rev

enue

s ($

M)


13


Base Business

1

14

Volcano’s Platform Competitive Differentiation

Eagle Eye® Platinum (20 MHz)

Eagle Eye® Platinum ST Catheter Visions® PV .018 (20 MHz) Catheter

Visions® PV .035 (10 MHz) Catheter

PrimeWire® Prestige

FloWire®

ComboWire® XT

Revolution® (45 MHz) Catheter

PrimeWire® Prestige PLUSw/ AcuSense™

Precision Guided Therapy

15

FFR

CFR

iFR™

IVUS

ChromaFLO® VH® IVUS FL.IVUS

Pre-Procedure Peri-Procedure Post-Procedure

MedtronicPioneer™

All from Volcano’s Single Multi-Modality Platform

FL.ICEFL.IVUS

withTunneling

OCTFACT

“FACT”, “FL.IVUS” and “FL.ICE” are acronyms for Volcano Corporation’s focused acoustic computed tomography (FACT), forward-looking IVUS (FL.IVUS) and forward-looking intra-cardiac echocardiography (FL.ICE) technologies. These technologies are currently under development and are not commercially available for sale.

IVCF

IVI Co-Reg

Angio+

Covidien SeeHawk™

16

One System…Many SolutionsCommitted to Integration & Expanding Applications

17

Winning the Land GrabVolcano vs. Boston Scientific Installed Base (US Only)

792 829 855

19622417

2797

0

1000

2000

3000

4000

12/31/10 12/31/11 12/31/12

Volcano s5 Boston Scientific iLab

Tota

l Uni

ts In

stal

led


Inte

grat

ed a

nd R

oll a

roun

d

Land grab last 2 years:Volcano 835Boston 63

93%

18

Broadest Physiology Product PortfolioCoronary and Peripheral Guidewires, Hardware and Modalities

FFR CFR iFR™

Modalities

PrimeWire® Prestige PLUSw/ AcuSense™

PrimeWire® Prestige

FloWire®

ComboWire® XT

Physiology Guide Wires

ComboMap® Console SmartMap® Console

Hardware

S5i™ Integrated System

4th New Wire in 4 Years

*iFR is not commercially available

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Physiology Penetration into Coronary PCIProduct Development and Clinical Data Drives Standard of Care

*CathPCI database shows 59% ACS**Every stable PCI procedure needs some objective test of Ischemia per lesion to triage between OMT, PCI and CABG

***Fearon, WF., et al., Cost-effectiveness Analysis of FFR-Guided PCI versus Medical Therapy in Stable Coronary Disease (FAME 2). Presented at TCT 2012, October, 2012 ****77% of patients have visible MVD that will warrant functional assessment based on 42% probability of being intermediate per lesion and 2.7 lesions per patient with MVD [1-(1-42%)^2.7] =

77% *17% of patients with confirmed ischemia but also MVD = 13%. Doesn’t add because of rounding.*****Tonino PA, et al., Fractional flow reserve versus angiography for guiding percutaneous coronary intervention. N Engl J Med. 2009 Jan 15;360(3):213-24

All PCIs100%

Non-acute*41%

ACS*59%

FAME II*** confirms need for PCI and Cost-Effectiveness of FFR Guided PCI

Today’s tools suitable24%

Efficient MVD****Confirmatory non-

invasive test w/ MVD9% (of 17%)

Proof of Ischemia**Missing or

non-confirmatory noninvasive test

24% (of 24%)

FAME***** shows lesion specific guidance improves outcomes and cost-effectiveFrontline Wire, iFR™ make practical

33%

‘Ad-Hoc’ STEMI (Non-Culprit)8% (of 17%)

‘Ad-Hoc’ NSTEMI (Non-Culprit)9% (of 18%)

Confirm UA(Culprit & Non-Culprit)

18% (of 24%)

DEFINE Dx Angio to show FFR / iFR™

Dx is more efficient vs. non-invasiveFrontline Wire, iFR™ make practical

DEFINE ACS goal to show iFR™ guided ‘ad-hoc’ MVD stenting is cost-effective Frontline Wire, iFR™ make possible

51%

60%

68%

DEFINE Family to show iFR™ post stentplacement a measure of successful PCIFrontline Wire, iFR™ make possible

‘PCI Success’Severe Lesions

Measure of Success 80+%

20





All PCIs100%

Non-acute*41%

ACS*59%







24% (of 24%)


33%




18% (of 24%)




51%

60%

68%


‘PCI Success’Severe Lesions

Measure of Success 80+%

21


All PCIs100%

Non-acute*41%

ACS*59%







24% (of 24%)


33%




18% (of 24%)




51%

60%

68%


80+%‘PCI Success’Severe Lesions

Measure of Success




22

0

1,000

2,000

3,000

4,000

5,000

6,000

2012 2013 2014 2015 2016 2017

Glo

bal A

ddre

ssab

le M

arke

t Pro

cedu

res

(000

’s)

Neuro / Sinus

SFA / BTK / Renal***

CABG Mapping**

Dx Angio w/ Visible CAD*

Pre & Post Confirmation (PCI)

Unstable Angina (PCI)

Stable Angina (PCI)

Matching Anatomy with Function in >5M PatientsOpportunity Beyond Stable PCI for Angiography and Physiology Together

*Assumes 28% of scheduled stable PCI procedures technically Dx Angio with negative FFR (FAME II) and expands to challenge non-invasive alternatives**Assumes 50% of CABG patients will benefit from FFR Dx to reduce graft failure rate***Assumes non-CTO cases benefit from monitoring of physiology gradients throughout stent or atherectomy procedures (50%)


23

0

500

1,000

1,500

2,000

2,500

3,000

2012 2013 2014 2015 2016 2017

Rev

enue

($M

)

Global ProjectedMarket Size ($M)

Global AddressableMarket size ($M)

>$2B Addressable Market in Physiology


24

Broadest IVUS Product Portfolio

Software

Eagle Eye® Platinum (20 MHz) Catheter

Coronary IVUS Catheters

s5™ Console

Hardware

S5i™ Integrated System

IVUS ChromaFLO® VH® IVUS

Eagle Eye® Platinum ST Catheter

Revolution®

(45 MHz) Catheter

Peripheral IVUS Catheters



25

Focused Acoustic Computed Tomography (FACT)

Technology• The NEW intravascular imaging standard • < 50 µm high resolution imaging with similar performance to OCT• Allows visualization of entire plaque and vessel wall without

needing to flush to clear blood

Addressable Market Activities for Commercialization• Finalize catheter and pullback device designs• Complete animal studies and regulatory filings• Complete First in Man cases late 2013• Projected commercially available 2014 and 2015

>$2BBY 2017



26

Intravascular Imaging Comparison

Axial

FACT image quality expected to be superior to OCT1

Flushing not required to clear blood with FACT2

FACT allows you to see the entire plaque and vessel wall • FACT and IVUS can see 10 mm into the tissue• OCT can only see the first 2 mm of tissue

3

Resolution Phased Array IVUS Rotational IVUS OCT FACT

Axial (depth) 150 µm 75 µm 15-20 µm < 50 µm

Lateral 200 - 500 µm 100 - 200 µm 20 - 40 µm 50 – 100 µm

Axial

27

Software

Hardware

OCTAVE™ Imaging Catheter

LVOCT™ System (Low Volume OCT)S5i™ Integrated System

Volcano OCT Imaging System

Volcano OCT is currently in development and not commercially available.

s5™ Console

OCT Catheter

28

Volcano OCT Imaging System

Technology• OCT is an optical based high resolution imaging (~15 micron)

- Integrated on our multimodality system- Complimentary to IVUS- Capable of imaging 2/3 the entire coronary in just 2 seconds

• OCT for visualization and differentiation of:- Thin layers of neointimal tissue (fine stent strut coverage)- Red and white thrombus in ACS cases- Fine stent apposition- Small dissections

• A platform technology that will provide us capabilities and differentiation to pursue additional markets and applications

>$500MBY 2017

Addressable MarketActivities for Commercialization• Our design is fixed with integration of third party light source• What we expect in 2013 (assuming no litigation delays):

‒ FIM cases in multiple locations‒ Start of clinical trial cases for regulatory submission‒ Regulatory submissions in EU and Japan in Q4

Volcano OCT is currently in development and not commercially available. Source: Volcano Corporation data on file

29

0

500

1,000

1,500

2,000

2,500

2012 2013 2014 2015 2016 2017

Rev

enue

($M

)

Global ProjectedMarket size ($M)

Global AddressableMarket size ($M)

>$2B Addressable Market in Intravascular Imaging (IVI)

Source: Volcano Corporation data on fileIntravascular Imaging (IVI) is defined as coronary and peripheral IVUS, FACT, OCT, and Hardware

30

Leadership Built on Innovation

2001• First patent issued for intravascular plaque characterization

2002• Eagle Eye® digital IVUS imaging catheter

• SmartMap FFR® system

• Circulation article concludes spectral analysis canpredict plaque characterization

2003• First plaque characterization software integrated into intravascular imaging system

2005• Eagle Eye® Gold digital IVUS imaging catheter

• VH® IVUS software approved for InVision Gold imaging system

2007• Revolution®

45 MHz rotational IVUS imaging catheter

2009• First Clinical testing of Volcano OCT* technology

2004• ComboWire® andComboMap®

first multi-modality pressure and flow guide wire and system

• First patients enrolled in VH®

IVUS registry and PROSPECT study

2006• s5™ tower imaging system with ChromaFlo®

and VH® IVUS

• s5i™ Integrated imaging System with ChromaFlo®

and VH® IVUS

• Innova ® IVUS

2008• FFR and rotational IVUS functionality added to s5™ and s5i™imaging systems

2010• Eagle Eye® Platinum digital IVUS imaging catheter

• PrimeWire PRESTIGE®

pressure guide wire

• FFR Case Manager ™

for s5 ™ and s5i™ systems

• One millionth procedure guided by Volcano technology

• Volcano is U.S. market leader in intravascular imaging

2011• PrimeWire Prestige®

PLUS guide wire

• First iFR®

data at EuroPCR

2012• Eagle Eye® Platinum ST digital IVUS imaging catheter

• Valet® Microcatheter

• IFR® software approval in Japan

• AcuSense™ pressure guidewire technology

• Visions® PV 035 digital IVUS catheter

• CORE™ hardware platform

• Hi-Q™ rotational imaging software

• ReFLOW® aspiration catheter CE/510(k) submission

2013THE LEADING PRECISIONGUIDED THERAPYCOMPANY

31



22

32

Axsun Medical

Opportunities- OEM Intravascular Imaging (IVI)- OEM Ophthalmology- Other (Dental, GI, etc.)

Axsun’s Swept lasers enable 2-5X higher speed and image deeper than current Spectral Domain OCT systems

Intravascular OCT Image Topcon Deep Range Imaging (DRI) OCT SSOCT Imaging Range Comparison

33

Axsun Medical Ophthalmology

• The >$500M ophthalmic OCT camera market will transition to Swept Source OCT light sources over the next 3-5 years

• Axsun will support our OEM OCT ophthalmic OCT system customers with customized swept laser solutions as they complete development and obtain FDA Clearance

Eye and OCT Image

Axsun SSOCT Light Source

Projected Market Size is $100M by 2017


34

Sync-Rx Company Overview

• Advanced software application company founded in 2007- Based in Tel Aviv area- Software engineering and algorithm development

• Products and technology optimize and facilitate trans-catheter cardiovascular interventions using automated online image processing- Initial focus on Angio + coronary catheterizations- Development of IVUS and IVI co-registration with Angio- Work done in angio-based FFR measurement

application- Future Peripheral & Structural Heart applications

IVI Co-Registration

Angio+

35

Sync-Rx Opportunity

>$300MBY 2013

Addressable Market

Activities for Commercialization• Angio+

- 510k clearance (Q3 2010)- CE Mark (Q3 2010)

• IVI Co-Registration- Complete software and hardware

development- Submit 510k/CE Mark (Q3 2013)

Strategic RationaleStrategic Rationale

Brings X-Ray to Volcano Platform

Proprietary Volcano Solution

Competitive Differentiation

Increases Utilization

Aligns with Volcano

Mission

Strengthen Physiology

with Pressure MappingExpandable

Platform in Peripheral and

Structural Heart Source: Volcano Corporation data on file

36

Opportunities with Sync-Rx

Image StabilizationQuantitative Coronary Angiography Image Enhancement

1 Current

Co-registration between IVUS and Angiography2 Future

(Near-term)

Co-registration between Angiography and:OCT Structural HeartFFR NeuroPeripheral CT/MRI

3 Future (Long-term)

37

Crux Overview

• Founded 2004 in Menlo Park, CA

• Product portfolio includes:Inferior Vena Cava Filter (novel design)

- Two opposing nitinol helical wireform elements- Flexible ePTFE filter- Two retrieval anchors (bidirectional retrieval),

one femoral & one jugular- Five anchors to prevent migration of the device

IVC Filter Retrieval Kit Structural Heart Embolic Protection Device

• Regulatory StatusInferior Vena Cava Filter

- CE Mark (Q4 2011)- 510k Clearance (Q3 2012)

IVC Filter Retrieval Kit - FDA and CE submittals (2013)

IVC Filter Placement

IVC Retrieval Kit

Embolic ProtectionDevice

38

Crux IVC Filter

>$500MBY 2013

Technology

• Novel helical design

• Self centers, eliminates problem with tilt (in contrast to all other filters on market)

• Bidirectional retrieval – can be removed by femoral or jugular approach (in contrast to most other filters on market)

Addressable MarketActivities for Commercialization• Manufacturing ramp• Regulatory approvals for IVUS-guided placement

at bedside• Development of combination IVCF IVUS catheter

device‒ Tremendous cost and efficiency savings

when performing IVC Filter placements at bedside, rather than angio suite


39

Crux Differentiation

Cook Celect ALNBARD Eclipse

RETRIEVE 2, 3 and 4 Pivotal Clinical Trial Results*Deployment Success 123/125 (98%)Retrieval Success 53/54 (98%)Migration 0%Fracture 0%Embolization 0%

Conventional Tulip Design Drawbacks Crux FeaturesFilter Tilt Self-CenteringMigration 0% Migration in Pivotal TrialFracture 0% Fracture in Pivotal TrialLimited Retrieval Bi-directional Retrieval

Crux

*SIR 2012 - Abstract No. LB04

40

Software

Hardware

FL.IVUS PIMS5i™ Integrated System

The Only Forward Looking IVUS (FL.IVUS) Portfolio

s5™ Console

PreView™ Catheter


41

Forward Looking IVUS

>$750MBY 2017

Addressable MarketActivities for Commercialization• CE Mark Device• 510k submitted 2012• Completion of on-going clinical trials in US and EU• Complete integration onto s5 platform by 2H 2013 • Additional features and capabilities being developed

for family of future generation catheters

Technology• Provides real-time, forward looking therapy guidance to improve

treatment of highly stenosed lesions• Over-the-wire support catheter that enables physician to image in

front of catheter and direct wire placement• Goal of making complex cases easier, safer and faster by improving

outcomes, reducing radiation and contrast, and reducing case time



42

Forward Looking Intra-Cardiac Echo (ICE)

Technology• Forward-looking echo that provides real time therapy

guidance for structural heart procedures• Imaging plane aligns with working lumen for delivery of

guidewire and devices• Proprietary, platform technology enabling unique imaging

capabilities in wide range of clinical indications• Commercialization 2014 to 2015

Atrial Fibrillation

Guide Transseptal

Crossing

Coronary Sinus Cannulation & Side Branch Selection

PLAATO (LAA Closure) – Watchman (Atritech)– AGA Medical/St. Jude– Coherex

Mitral Valve Replacement or Repair

– MitralClip (Abbott)– CardiAQ (CVT)– Kardium

PFO/ASD Closure >$350M

BY 2017

Addressable Market

Investigational Device, not for human use“FACT”, “FL.IVUS” and “FL.ICE” are acronyms for Volcano Corporation’s focused acoustic computed tomography (FACT), forward-looking IVUS (FL.IVUS) and forward-looking intra-cardiac echocardiography (FL.ICE) technologies. These technologies are currently under development and are not commercially available for sale.


43



33

44

Volcano Acquisition CriteriaTwo Profiles

• Existing revenue base and growth• Limited clinical indications – expansion

opportunities• Limited distribution – scale or geography• Limited volumes – manufacturing cost

opportunities• High SG&A relative to sales

Ramping Commercialization

• Limited regulatory, technical or clinical risk• Geographic, commercialization and clinical

indication expansion opportunities

Beginning Commercialization (Crux example)

2

1

• Clinical Vertical‒ Coronary‒ Peripheral‒ Structural Heart‒ CTO

• >$500M Addressable Market• #1-2 Market Position in 2017• Limited dilution• Distribution, geographic,

manufacturing, and G&A leverage

• Strong team and culture

General Acquisition Criteria

45

Volcano’s Strategy Expansion

Diagnostic Therapeutic Integrated Diagnostic + Therapeutic

PROCEDURES

TECHNOLOGIES

CORONARY

NON-CORONARY

46

Volcano’s Non-Coronary PCI Growth

PAD


Venous

Neuro

EVAR/TEVAR

Carotid

Structural Heart

PROCEDURES

TECHNOLOGIES

NON-CORONARY

IVUS (limited) – plaque characterization, stent guidance

IVUS – graft measurement, avoid contrast

IVUS – short tip Eagle Eye

IVUS – stent sizing, avoid advential cuts (UTOPIA)

FFR (limited) – know where to treat, when to stopSync-Rx

Valet Micro Catheter Pioneer image-guided re-entry

IVUS (limited) – adjunctive to fluoro

IVUS – dx central vein stenosis

IVUS – dx of vein compression; thrombus assessment

IVCF

AV FistulaVein Compression/DVT

CTO

Balloon

Stent

DEB

Atherectomy

Current state

Crux – NEW ACQUISITION

47


PAD


Venous

Neuro

EVAR/TEVAR

Carotid

Structural Heart

PROCEDURES

TECHNOLOGIES

NON-CORONARY

IVCF


CTO

Balloon

Stent

DEB

Atherectomy


IVUS – graft measurement, avoid contrastIVUS – short tip Eagle EyeFL.IVUSIVUS – stent sizing, avoid advential cuts (UTOPIA)

FFR (limited) – know where to treat, when to stopIVUSSync-Rx

Valet Micro CatheterFL.IVUS

Medtronic PioneerFL.IVUS




FFR – pressure &flow in sinus/aneurysm; OCT/IVUS apps

FL.ICESync-Rx – NEW ACQUISITION

Crux Embolic protectionNEW ACQUISITION

IVUS-IVCF combo

Covidien SeeHawk

Current state

Product Development

FL.IVUS

Sync-Rx – NEW ACQUISITION

FL.IVUS FL.IVUS


48


PAD


Venous

Neuro

EVAR/TEVAR

Carotid

Structural Heart

PROCEDURES

TECHNOLOGIES

NON-CORONARY





IVCF


CTO

Balloon

Stent

DEB

Atherectomy



Crux Embolic protectionNEW ACQUISITION

IVUS-IVCF combo

Covidien SeeHawk

IVUS – DEB sizingIVUS – DEB sizing

IVUS – stent sizing, avoid advential cuts (UTOPIA)


IVUS – short tip Eagle EyeFL.IVUS




Current state

Product Development

New Clinical Data

FL.IVUS


FL.IVUS FL.IVUS


49


PAD


Venous

Neuro

EVAR/TEVAR

Carotid

Structural Heart

PROCEDURES

TECHNOLOGIES

NON-CORONARY





IVCF


CTO

Balloon

Stent

DEB

Atherectomy



Crux Embolic protection

IVUS-IVCF combo

Covidien SeeHawk

IVUS – DEB sizingIVUS – DEB sizing

IVUS – short tip Eagle EyeFL.IVUS




Partner/M&A oppty

Partner/M&A oppty

Partner/M&A oppty

Current state

Product Development

New Clinical Data

Partner/M&A oppty

Partner/M&A oppty

FL.IVUSIVUS – stent sizing, avoid advential cuts (UTOPIA)


FL.IVUSFL.IVUS



50

Volcano Achieves Diversified Growth of 11-13%

Total Addressable Market >$5B

Strategic Expansion Business Model

Expansion

OCT ophthalmology

CTO (FL.IVUS, microcatheters, therapy)Structural Heart (FL.ICE,

Sync-Rx, Crux embolic protection)

Crux IVCF 44556677

>$1.5B >20%Pipeline –Internal Development

Addressable Market Growth

IVI (IVUS, FACT, OCT)

Physiology (FFR, Flow, iFR)

Base Business

Addressable M

arket Size

8+ >$1B >20%

1122 >$2.5B 11-13%

Axsun Industrial 33


51

$103$131

$172

$228

$294

$344$382

0

50

100

150

200

250

300

350

400

450

2006 2007 2008 2009 2010 2011 2012

Rev

enue

($M

)Revenue Growth 2006-2012


52

Rest of World• 56 direct sales reps in

Western Europe, South Africa, & Asia Pacific

• Distributors in Asia Pacific, Latin America, Middle East and Canada

United States• 133 direct sales employees• CPT physician

reimbursement for IVUS and FFR

Japan• 66 direct sales

employees• Full Reimbursement

47%32%

21%

By Geography

U.S.JapanROW

54%

25%

10%8%3%

By ProductIVUS Disp

FM Disp

Systems

OtherMedicalIndustrial

Worldwide Sales & Distribution

53

Sales Growth1

Gross Margin

Operating Expenses

Operating Margin

EPS

Free Cash Flow2

EBITDA3

~13% - 15% CAGR

70% - 71%

50% - 51%

~19-21.0%

~80% CAGR

~$90-95M

~$170-180M or 40% CAGR

1Excludes the impact of FX.2Cash flow from operating activities less capital expenditures.3Earnings before interest, tax, depreciation and amortization.

LRP 2012 – 2016

Long-Range Plan Objective

54

• Multi-modality system with >15 applications in the market or development• Over 7,700 installed systems• Approximately 255 direct global sales reps• Strong partnerships with GE, Philips, Siemens, Medtronic, and Covidien

• Market and product line growth opportunities >$5B• 2011 - $344M revenue; 2012 - $382M revenue• Gross margin leverage from Costa Rica manufacturing• Operating margin expansion from SG&A leverage• Strong financial track record for 6+ years as a public company

• Axsun Medical Applications, Ophthalmology driven• Image Guided Therapy products including IVC Filters• Forward Looking IVUS (FL.IVUS) & ICE (FL.ICE) • Optical Coherence Tomography (OCT)• Sync-Rx software modalities

• Solutions for issues facing healthcare systems today = FUNCTIONAL PCI• Physiology & Intravascular Imaging technology and innovation leader• Rapidly growing physiology business in large underpenetrated market • Global IVI market share leader, growing market share

Why Volcano Now?

The Precision Guided Therapy

Leader

Base Business Growth

Pipeline/ Internal

Development

Financial Leverage

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