Edwards Lifesciences
2012 ANNUAL REPORT
SELECTED Operating Information
Twelve months ended December 31 (in millions)
2012
2011
2010
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Research and development expenses
Operating margin(a)
OPERATING STATISTICS
As a percentage of net sales:
Gross profit
Selling, general and administrative expenses
Research and development expenses
Operating margin(a)
$1,899.6
$1,678.6
$1,447.0
494.6
1,405.0
705.3
291.3
408.4
74.0%
37.1%
15.3%
21.5%
489.8
408.3
1,188.8
1,038.7
642.4
246.3
300.1
70.8%
38.3%
14.7%
17.9%
550.0
204.4
284.3
71.8%
38.0%
14.1%
19.6%
(a) Operating margin is calculated by subtracting selling, general and administrative expenses and research and development
expenses from gross profit.
The information contained in the table above should be read in conjunction with Edwards Lifesciences' "Management's Discussion
and Analysis of Financial Condition and Results of Operations" and "Consolidated Financial Statements" found in the accompanying
Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
Edwards Lifesciences is the global leader in the science of heart valves and hemodynamic
monitoring. Driven by a passion to help patients, we partner with clinicians to develop
innovative technologies in the areas of structural heart disease and critical care monitoring
that enable them to save and enhance lives.
FRONT COVER
Harold was diagnosed with severe aortic stenosis at the age of 81. Aortic stenosis is a
progressive disease in which the aortic valve of the heart hardens over time and cannot open
or close normally, and is estimated to affect more than 300,000 older Americans. Edwards is
the only company approved to offer a nonsurgical solution to the disease of severe symptomatic
calcified native aortic stenosis for U.S. patients like Harold. Heart teams performing
the transcatheter aortic valve replacement (TAVR) procedure crimp the Edwards SAPIEN
transcatheter heart valve onto a catheter-based delivery system, which is inserted into patients
one of two ways: through an artery in the leg (transfemorally) or through the ribs (transapically).
At 83, Harold received his SAPIEN heart valve in Miami via the transfemoral method as part
of a U.S. clinical trial. To read more about Harold’s story, please visit our online annual report
at ir.edwards.com, or scan the QR code below.
Experience more by scanning QR codes found in
this report. Open your mobile phone's browser,
1) go to get.beetagg.com, 2) download the free app,
3) launch the app, 4) click scan, 5) center your
camera on the coded images found in this report,
and 6) click to launch the content.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 1
The financial figures below are presented on a GAAP basis, unless accompanied by the terms “underlying” or “adjusted for special items,” which
refer to non-GAAP financial measures. For a reconciliation of GAAP to non-GAAP figures, refer to pages 20 and 21.
NET SALES
In 2012, the U.S. launch of our SAPIEN
transcatheter valve technology drove 16 percent
underlying growth in total net sales. We believe
this technology has the potential to drive sustain-
able long-term growth.
R&D INVESTMENT
To extend our global leadership in structural heart
disease and critical care technologies, Edwards
increased research and development investment
18 percent in 2012.
$1,900
$1,679
$1,447
$1,321
$1,238
$291
$246
$204
$176
$139
2008
2009
2010
2011
2012
2008
2009
2010
2011
2012
NON-GAAP NET INCOME
In 2012, we achieved year-over-year net
income growth of 32 percent, adjusted for special
items, while continuing to make significant
investments in future growth opportunities.
STOCK PERFORMANCE*
Over the past five years, Edwards’ stock price
has significantly outperformed the S&P 500 and
the company’s medical products peer group.
$318
$241
$219
$179
$150
400
300
200
100
0
2008
2009
2010
2011
2012
2007
2008
2009
2010
2011
2012
EW
RXP
S&P 500
100
100
100
119
189
80
62
99
76
352
106
86
307
112
86
392
136
97
(cid:1) Edwards Lifesciences Corp.
(cid:1) Morgan Stanley Healthcare Products (RXP)
(cid:1) S&P 500
*Cumulative total return based upon an initial
investment of $100 on December 31, 2007, with
dividends reinvested.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 2
A LETTER To Our Shareholders
2012 was a significant year of advancement for Edwards Lifesciences. Faced
with global economic challenges and an evolving healthcare environment,
I am proud that Edwards completed the year with strong results and a clear
path for continued success in the future.
This year, we delivered on several important milestones on our key innovations
and made substantial investments designed to strengthen our long-term
outlook. Most importantly, an even greater number of patients worldwide
benefitted from our products.
MICHAEL A. MUSSALLEM, CHAIRMAN & CHIEF EXECUTIVE OFFICER
Whether it’s developing new products that improve
patient recovery times or result in shorter hospital
stays, creating tools that add value to a physician’s
existing skill set, or providing clinical and economic
evidence that help payors manage costs and deliver
essential high-quality care to those in need – our
performance in 2012 reflects our commitment to the
healthcare community and sets a solid foundation
for our future.
The dynamic healthcare climate is redefining the way
global companies, like Edwards, operate, and influences
the way they function in the future. Our success is
measured both by the development of innovative
products and, increasingly, the value we bring to all
of our stakeholders. Together, this “community” of
policymakers, clinicians, shareholders, regulators,
payors, peers and patients must work together to
improve the quality and value of care to meaningfully
impact patients and their families.
The following pages illustrate several voices representing
different elements of this community – they all play
a role in contributing to the success of bringing new
and important technologies to the patients around
the world who need them most.
STRONG 2012 RESULTS
For the year, we achieved net sales of $1.9 billion.
While we ended the year just short of our original
goals, we still achieved a 16 percent underlying
sales growth rate. Our gross profit margin remained
strong, and we grew diluted earnings per share
33 percent, adjusted for special items. Net income
recorded strong bottom-line growth at $293.2
million. We generated $253 million in free cash flow,
which was our strongest performance to date.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 3
In 2012, we invested more than 15 percent of sales
in research and development (R&D). We believe
that there are considerable opportunities to develop
meaningful solutions to help the many patients who
may benefit from our heart valve and critical care tech-
nologies, and we remain committed to strengthening
our pipeline of important innovations.
performing TAVR with high procedural success,
and we are very proud that more than 5,000
patients have been treated with this important
therapy since launch. We are encouraged by the
strong support and enthusiasm for the SAPIEN
valve among clinicians, hospitals and the patients
they serve.
TRANSFORMING PATIENT CARE THROUGH
FOCUSED INNOVATION
Our Transcatheter Heart Valve product line, currently
our most important growth opportunity, continued to
drive success for Edwards in 2012.
In October, we received FDA approval for our Edwards
SAPIEN transcatheter heart valve for the treatment
of high-risk patients. Although the timing was later
than anticipated, this was an extremely positive devel-
opment as it enables a broader group of very sick
patients to benefit from this life-saving technology.
During the year, we also announced key clinical
evidence that further validated transcatheter aortic
valve replacement (TAVR) in the treatment of very
ill patients. Most notably, three-year results from
The PARTNER Trial (Cohort B) demonstrated that
inoperable patients who received TAVR experienced
a sustained survival benefit and spent less time in
the hospital, as compared to those receiving
standard therapy.
Austerity measures intensified in Europe,
particularly in the south, and although this affected
procedure rates in 2012, adoption of this therapy
continued to grow in the region. We introduced
a larger size offering of the SAPIEN XT valve in
Europe, which broadens the patient population
who can benefit from this therapy. Additionally,
we’ve seen the real-world clinical and economic
benefits of TAVR demonstrated in multiple
studies and through extensive country registries.
We believe the recent introduction of new clinical
guidelines supporting the use of TAVR in
appropriate patients and continued, widespread
clinician interest position us well for future growth.
Over the past several years we made substantial
investments across our research and development,
manufacturing and commercial organizations.
These investments have resulted in the strong
growth that we are experiencing now, and have
laid a solid foundation for continued growth in
the future.
Another significant highlight for TAVR this year
was the U.S. decision authorizing national Medicare
coverage for transcatheter valve therapy. There have
been some short-term challenges associated with
implementation; however, the decision is favorable
and flexible, as it provides access for patients indicated
for this therapy and opportunities to expand coverage
when supported by new evidence.
In our Heart Valve Therapy product line, while
sales in 2012 were slightly lower than expectations,
we are encouraged by the important progress
we made in enhancing our product pipeline.
In particular, we advanced the development of
less-invasive technologies that we believe will
help transform the surgical treatment of heart
valve disease.
We are pleased with the progress we’ve made in the
first year of the U.S. SAPIEN valve launch, which
has been largely in line with our initial expectations.
Currently, more than 200 hospitals in the U.S. are
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 4
In 2012, we obtained regulatory approval for our
EDWARDS INTUITY valve system in Europe, and in
the U.S, we received FDA clearance to initiate a multi-
center study, which represents a significant step in
bringing this technology to additional patients. This
system is intended to facilitate minimal incision surgery
and rapid valve deployment, with the goals of enabling
faster procedures and quicker recovery for patients.
We also received regulatory clearance for several
of our leading surgical valve products in key global
markets, including Japan and China.
In our Cardiac Surgery Systems product line, we
announced the global launch of our ThruPort
IntraClude intra-aortic occlusion device for patients
undergoing cardiopulmonary bypass. The IntraClude
device is the first of its kind product designed to
enable mitral valve repair or replacement through the
smallest possible incision, when compared to median
sternotomy. This launch represents real progress
toward our objective of further enabling surgeons to
offer minimally invasive surgery to more patients.
Our Critical Care product line grew modestly in
2012 and we invested in several new initiatives. The
acquisition of the Dutch company, BMEYE, B.V.,
expands our portfolio to include a non-invasive
hemodynamic monitoring platform. This provides
us with the opportunity to reach more critically
ill patients who are not optimally monitored today
and may benefit from better informed, immediate
treatment decisions.
In 2012, we focused on making important design and
functionality improvements to our GlucoClear system
– our next-generation, in-hospital continuous blood
glucose monitoring platform. We believe there is a
significant unmet need that can be fulfilled by this
technology, representing an important opportunity to
help improve the outcomes for critically ill patients.
INVESTMENTS IN 2013 EXPECTED TO
DRIVE FUTURE GROWTH
Companywide in 2013, we will remain focused on
improving patient experiences and outcomes through
minimally invasive technologies and will invest
aggressively in future developments to meet these
objectives. We are committed to demonstrating
both clinical and economic benefits across all of our
product lines to validate the value of our technologies
to patients, clinicians and payors through evidence-
based indicators. These include faster, more reliable
procedures, shorter hospital stays, reduced complica-
tions and improved survival.
In our Transcatheter Heart Valve product line, we
will maintain our focus on next-generation devices,
and anticipate substantial clinical progress with our
SAPIEN 3 and CENTERA valve platforms. We also
look forward to making the SAPIEN XT valve more
broadly available to patients in other countries world-
wide. At the same time, we expect an increase in both
TAVR procedures and the number of TAVR centers
in the U.S.
In Surgical Heart Valve Therapy, we anticipate
European approval and launch of our next-generation
EDWARDS INTUITY Elite valve system.
In Critical Care, we announced in early 2013 that our
GlucoClear system has a CE Mark, and we expect this
to be a pivotal year as we complete additional clinical
studies in Europe. Additionally, we continue to antici-
pate offering our customers in the U.S. and Europe
our non-invasive hemodynamic monitoring platform.
CULTURE OF INSPIRATION AND DEDICATION
A critical factor that contributes significantly to our
success is our employees. We believe that employees
are our greatest asset and, in 2012, we continued to
build and strengthen our company through the
development and engagement of our team. Additionally,
we were able to add key talent worldwide. During the
year, we hired several hundred new employees, and
we are fortunate to be growing our company at a time
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 5
when many companies are not. We are privileged to
have a culture where employees are motivated to put
patients first every day. Their hard work and dedication
have created a team that is passionate about making a
difference in the lives of patients.
Another important and defining element of Edwards’
culture is our commitment to charitable giving and
participation in philanthropic causes. In 2012, we
gave approximately $5 million to more than 200 non-
profit organizations across 50 countries through The
Edwards Lifesciences Fund. Additionally, throughout
the year, we supported a variety of causes and organi-
zations that strengthen the communities where our
more than 8,000 employees live and work. We are
fortunate to be able to contribute time and resources
to organizations whose mission is to support improve-
ments in quality of life, and we will continue to make
corporate giving a priority for our company.
EDWARDS’ LONG-TERM FUTURE IS BRIGHT
It has been a privilege to continue to serve patients
and clinicians while also increasing shareholder value
in 2012, and we look forward to another productive
and successful year in 2013.
For 2013, we anticipate that Edwards Lifesciences will
generate approximately 13 to 16 percent underlying
growth resulting in total net sales of $2.1 billion to
$2.2 billion. Adjusting for any special items, we expect
to achieve a gross profit margin of 74 to 76 percent
and EPS of $3.21 to $3.31 for the year and to gener-
ate free cash flow of $300 million to $340 million.
Similar to 2012, we will continue to invest heavily in
research and development in 2013.
We are dedicated to making long-term investments to
strengthen our leadership positions in structural heart
disease and critical care, and position Edwards for
sustained growth for many years. Additionally,
we plan to expand our presence in emerging markets
as they invest more in their healthcare systems.
Our focus has always been to differentiate ourselves
through innovations that provide value. We’re dedicated
to transforming patient care and generating the evidence
that will demonstrate how our work makes a difference
in the lives of patients and the broader healthcare
community. Edwards will continue to operate in a
responsible and ethical way, to continue producing
high-quality products for clinicians and their patients
around the world.
We are inspired every day by the stories of the patients
that we serve, and the value of creating solutions
that help individuals live better, healthier and more
productive lives. We look forward to achieving
additional milestones in 2013 to meet the needs of
patients and clinicians worldwide.
We thank you for your continued trust, partnership
and support.
Sincerely,
MICHAEL A. MUSSALLEM
Chairman and Chief Executive Officer
To supplement its consolidated financial results prepared in accordance with generally
accepted accounting principles (“GAAP”), the Company uses non-GAAP historical
financial measures. The Company uses the term “underlying” when referring to
non-GAAP sales information, which excludes discontinued and newly acquired products
and foreign exchange fluctuations. The Company also refers to net income, net
income growth, and free cash flow “excluding special items” or "adjusted for special
items," which excludes gains and losses from special items such as significant invest-
ments, litigation, and business development transactions, and for 2012 includes the
tax benefit for the research and development tax credit, which is required to be
recorded in 2013. For a reconciliation of GAAP to non-GAAP figures, please refer to
pages 20 and 21 of this report.
Caution: The Edwards SAPIEN XT is an investigational device in the U.S., limited
by U.S. federal law to investigational use. The EDWARDS INTUITY valve system,
GlucoClear, Edwards SAPIEN 3 and Edwards CENTERA transcatheter heart valves
are not available for commercial sale in the U.S.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 6
Community of care
A 19th century theologian, William G.T. Shedd,
once wrote these very wise words, “A ship is safe
in harbor, but that’s not what ships are for.”
That philosophy is certainly applicable to any contemporary discussion
involving medical innovation and humankind’s healthcare needs. In
laboratories around the world, whether they be in a leading medical
technology company like Edwards Lifesciences, an academic institution
or even somebody’s basement, ideas are percolating, evolving and
gradually being transformed into inventions that can, one day, extend
the span and improve the quality of our lives.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 7
In fact, we are living in a vibrant, exciting time for health innovation.
Barriers once thought unbreakable are being shattered, and
patients are receiving therapies and interventions that would
have been unimaginable not all that many years ago.
The Edwards SAPIEN transcatheter heart valve is a prime example
of this rapid pace of progress. For elderly and frail individuals
with diseased aortic valves, open-heart surgery – a procedure
many of them did not have the strength to undergo – was the
only available solution. But, because innovators were determined
to develop a new and better idea to help these individuals, SAPIEN
was created, and many men and women have seen years added
to their lives and a greater vitality added to their years.
But, this device is also an important case study regarding one
of the greatest challenges our society faces. How do we create
an environment in which bold ideas that can improve societal
health have a pathway from the laboratory to the patient that is
both swift and safe? How do we align the exciting work being
done to break new ground in medical technology with the
increasing and intensifying health needs of societies that are
aging and experiencing higher rates of heart disease and other
serious illnesses?
These questions cannot be answered by any one individual,
one company or one sector of public or private life. It requires a
community dedicated to better care.
The fact that innovation has, throughout history, elevated the
quality of human existence is an undeniable and compelling fact,
but it’s a concept that has become more difficult to apply in the
increasingly complex world in which we live. Too often, the value
of exploration into new frontiers of science and medicine runs
headlong into a culture that is skeptical and risk averse.
Policymakers
OUR LEADERS SET THE TONE AND
SHAPE THE ENVIRONMENT THAT
AFFECTS THE COURSE OF MEDICAL
INNOVATION.
Whether it was the post-war
revitalization of economies or man
walking on the moon, some
of the greatest periods of human
accomplishment began with political
leaders issuing bold challenges.
And so it is with medical innovation.
If we are to balance patient safety
with the necessary acceptance
of calculated risk that goes hand-in-
hand with human progress, it is
essential that our leaders emphasize
the importance of breaking new
ground in advancing health and well-
being. Policies and programs must
then support this rhetoric and create
a network that encourages progress.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 8
Clinicians
THE FRONT LINES OF THE COMMUNITY
OF CARE ARE POPULATED WITH THE
DEDICATED HEALTHCARE PROFESSION-
ALS WHO WORK DILIGENTLY AND
RESOURCEFULLY TO PROTECT THEIR
PATIENTS' HEALTH.
It takes a special type of individual
to undergo years of education and
training and deal with the challenging
regulatory and legal complexities
that accompany the practice of
medicine, and still remain intensely
devoted to making a difference in
the lives of those they treat.
The community of care is stronger
when clinicians work closely with
industry, bringing their expertise on
human physiology and hands-on
care delivery to the development of
new patient-centered technological
innovations. In an environment
defined by transparency and research
independence, the continuing
collaboration between clinicians
and innovators can create the next
life-changing invention.
The verbal imaginings over what might go wrong with a new
idea find engaged audiences through today’s diverse media
platforms that are increasingly specialized and frequently pursuing
a narrow agenda. It’s inevitable that this amplified fear of risk
will find its way into the legislative chambers, courtrooms and
executive offices where decisions are made, policies are written
and laws and regulations are enforced. There is a certain mindset
that has gained traction, one that says there is little cost to moving
slowly and not much is lost by practicing extraordinary caution.
But, there actually is a cost, what economists would call an
opportunity cost – the price of what is not gained when we
choose to forego a potentially promising path. For example,
when a life-changing medical innovation stays in limbo for a
lengthy period of time.
As medical technology innovators, the great challenge of our
time is to enable patients to benefit from the cascade of new
ideas that have the potential to revolutionize healthcare practice
and delivery – and to accomplish this in a system that makes
the risks transparent. Our risk-averse culture is not necessarily
mirrored in the desires of individual patients, who state clearly
and consistently that they want to make informed choices that
enable them to benefit from 21st century innovations.
To meet this demand, every player in the healthcare ecosystem
has a critical role. Policymakers must decide that they will take
the steps necessary to meet the growing healthcare needs of an
aging population. We also need to incentivize an innovation sector
that enhances lives while bringing better value to healthcare
delivery, creating jobs and growing economies.
Clinicians are vital in fueling healthcare progress, identifying
patient needs that could be served with innovative technologies
and partnering with companies to provide the expertise that
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 9
makes those innovations a reality. Payors, be they private sector
or government, need to incentivize practices that will encourage
wellness and address rising costs in the healthcare system.
And companies like Edwards and its industry peers certainly have
a critical part to play in this community of care. It will be more
important than ever to create technologies that add value to the
healthcare system and that significantly advance quality of life.
We must also acknowledge that some past actions by the medical
device industry have resulted in legitimate concerns about
how novel technologies were introduced, contributing to a more
cautious environment. To drive transformational change, the
industry must embrace transparency and, in particular, openly
discuss the limitations of even the most compelling innovations.
We believe the most important players in this process are the
talented innovators themselves and the patients they live to
serve. Whether they are on college campuses, in laboratories or
at hospitals, those who are using their scientific and medical
knowledge to shape healthcare’s future deserve an environment
that will motivate the continued flow of new innovations.
Those involved in creating inventions that affect lives must always
be conscious of the safety of patients. Fear of risk, however,
should never be the barrier that separates those patients from
the innovations that can change their lives for the better.
To paraphrase the aforementioned William G.T. Shedd, medical
innovations are always safe when left in the lab, but that’s not
what innovations are for.
Innovators
THIS IS WHERE IT ALL BEGINS.
It is an inherent trait of the human
mind to be dissatisfied with the
status quo, to envision how life
might be made better tomorrow
than it is today. This desire for
change is the engine that pushes
bright, resourceful men and women
to develop the concepts and
inventions that eventually take our
society to the next plateau.
A vibrant community of care depends
upon these inventors and innovators.
The challenge for all players in the
healthcare continuum – from law-
makers to regulators to industry –
is to create an environment that
encourages our greatest minds to
devote their ideas and their energies
to medical progress. We must
develop pathways so our most
promising innovators can know that
their efforts will make a difference
in changing lives and shaping
the future.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 10
Edwards SAPIEN and SAPIEN XT Transcatheter Heart Valves
Edwards leads the world in the development of new therapies designed for the nonsurgical
replacement of heart valves. The safety and effectiveness of the Edwards SAPIEN transcatheter
valve were evaluated in the U.S. in a randomized, controlled pivotal study called The PARTNER Trial.
Additional analyses of data from The PARTNER Trial demonstrated that patients receiving the SAPIEN
valve experienced substantially better quality of life sooner than patients receiving alternate therapies.
The lower-profile Edwards SAPIEN XT transcatheter aortic heart valve is the market-leading transcatheter
heart valve in Europe. It is currently being studied in The PARTNER II Trial in the U.S., and is being
considered for approval as the first transcatheter heart valve commercially available for patients suffering
from severe aortic stenosis in Japan.
More than 5,000 patients in the U.S. have been
treated with the Edwards SAPIEN transcatheter heart
valve since its commercial launch in 2011.
“TAVR is really an amazing advance
in medicine for this decade. It’s allowing
us to save lives and is having a major
impact on life span and quality of life
for patients.”
Dr. Paul Teirstein
CHIEF OF CARDIOLOGY AND DIRECTOR OF INTERVENTIONAL
CARDIOLOGY FOR SCRIPPS CLINIC
“Lester’s vessels were too small for the transfemoral approach,
so we were able to implant the SAPIEN valve using the transapical
approach with no complications. It’s now been over two years
since the procedure and he’s still going strong.”
Caution: The Edwards SAPIEN XT valve is an investigational device in the U.S. and not available for commercial sale.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 11
“Several days after the surgery, I came home and started living my
normal life. I was able to walk without pain or having to rest.”
Lester
AUTHOR, SPEAKER AND VETERAN
Lester is a self-professed “go-getter,” so when doctors told him he was inoperable for
traditional aortic valve replacement surgery and there wasn’t much they could do for him, he
said, “No way! There’s got to be another way of doing it.” Lester is a survivor. He survived
the Bataan Death March and three years as a prisoner of war in Japanese prison camps during
WWII, so he knew he could survive this. “It’s all about attitude and I had an attitude that I
wanted to live more than anything and I was going to make it through,” Lester said. “The
Japanese Government had finally invited us to Japan to receive an apology for our treatment
while POWs, so I told my doctor this valve has to be replaced so that I can go to Japan.”
Determined to find a solution, he conducted his own research and learned about TAVR where,
at the age of 89, he became part of an Edwards clinical trial to receive a SAPIEN valve using
the transapical approach. Shortly thereafter he traveled to Japan and, along with several other
former POWs, received the formal apology from the Japanese government. Now 92 and a retired
professor, Lester operates Care Packages from Home, a nonprofit organization he founded in
2007 to send packages to American soldiers overseas. Since then, his organization has sent
more than 15,000 packages serving more than 140,000 troops.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 12
EDWARDS INTUITY
Valve System
Built on a trusted, proven valve platform,
the EDWARDS INTUITY valve system
combines Edwards’ PERIMOUNT valve
technology with innovations from our
transcatheter heart valves. This novel
rapid-deployment valve system streamlines
the surgical procedure by combining a
balloon-expandable frame with three sutures,
compared to 15 sutures for conventional
surgical valves. The resulting design provides
rapid deployment to enable faster procedures
and facilitate small incision surgery.
Advantages of small incision approaches
for patients can include faster recovery,
less pain, and improved cosmetic results.
We believe faster, less invasive procedures
will help benefit patients, both during the
procedure and long after.
“It’s now two years since the heart operation
and I must say I feel very strong and I’m able
to do a lot without limitations.”
Ludwig
OUTDOORSMAN, RETIRED DOCTOR
After suffering a heart attack in 1984, Ludwig had to decrease his work load as a practicing
gynecologist. Over the next 20 years, he gradually began to slow down and in his 80s started
experiencing shortness of breath. Upon closer examination, doctors found that Ludwig had
three blocked arteries and severe aortic stenosis. His heart surgeon performed a triple bypass
and a minimally invasive aortic valve replacement using the EDWARDS INTUITY valve system.
Ludwig, with his wife and family, currently enjoys retired life in the countryside of Austria.
Caution: The EDWARDS INTUITY valve system is not available for commercial sale in the U.S.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 13
Professor Doctor Günther Laufer
CHIEF OF CARDIAC SURGERY, MEDICAL
UNIVERSITY OF VIENNA, VIENNA GENERAL
HOSPITAL
“There is a clear trend for minimal
invasive incisions in aortic valve
replacement surgery. Small incisions
are associated with less pain and
tissue trauma, with decreased blood
loss, shorter hospital stays and
faster recovery of the patient. When
we talk about surgical aortic valve
replacement, the EDWARDS INTUITY
valve is the major step forward for
the surgeon as well as the patient.”
Gus
SKI INSTRUCTOR, FENCING ENTHUSIAST
As an active ski instructor, Gus sustained a collar bone injury in his
50s that led to a discovery of mitral valve prolapse, a leaky valve that
keeps blood from returning back into the left ventricle of the heart.
Even though doctors recommended he get his valve repaired then,
he did not want open-heart surgery, so he opted to wait. Then at
61, during a routine echo cardiogram, doctors found that the blood
flowing in the wrong direction had increased. Gus had also begun to
experience symptoms common to valve disease such as fatigue, so
he decided it was time to do something about it. He underwent
minimally invasive mitral valve repair using a Carpentier-Edwards Physio
II annuloplasty ring. Aiding the procedure, his surgeon also utilized Ed-
wards’ ThruPort systems to perform intricate procedures through a
small incision. Gus was released from the hospital three days after
surgery and all restrictions were lifted two weeks later. As a husband
and new father, Gus is an inspiration, modeling courage and confidence
to his family and friends.
“Medical technology finally caught up with my lifestyle.”
The Carpentier-Edwards Physio II Ring offers the security of a
proven design based on 40 years of experience in mitral valve
reconstruction. The ring design features are designed to result in
reduced levels of stress on the repaired mitral valve, and a more
physiological and durable repair. Edwards’ ThruPort Systems for
Minimal Incision Valve Surgery (MIVS) enable surgeons to perform
intricate procedures, such as valve repair, through a small incision
between the ribs instead of a large incision down the middle of the
chest. Patients undergoing MIVS recover faster, have less pain and
have a smaller scar compared to traditional “open chest” surgery.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 14
Shermeen Vakharia, MD, MBA
ANESTHESIOLOGIST, UC IRVINE MEDICAL CENTER
“Phyllis was considered a high-risk case due to an aneurysm repair on
her renal artery, which is major abdominal surgery with the potential
for a lot of blood loss and hemodynamic shifts. Plus she had only one
kidney so it was critical to maintain optimal function postoperatively.
At UC Irvine Medical Center we use the EV1000 and FloTrac systems in
most high-risk cases and, during Phyllis’ surgery, it proved to be crucial
in facilitating better communication with the surgeons to optimally
manage her goal-directed therapy. Phyllis had an amazing recovery –
one without the need for dialysis – preserving her quality of life.”
Edwards EV1000 Clinical Platform
The EV1000 clinical platform with a touch-screen monitor displays a patient’s physiologic status, as
well as color-coded clinical targets and alerts. The EV1000 clinical platform is designed to help clinicians
make more informed and rapid decisions in the hospital environment. Edwards’ FloTrac sensor,
PreSep and PediaSat oximetry catheters, VolumeView set and TruWave disposable pressure transducer
also are compatible with this integrated system.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 15
“Recovery for me had a few ups and downs, but everyone was surprised by
how fast I improved. We’re planning a trip to Hawaii with the whole family and
I’m really excited to travel again. I’m looking forward to being on the beach,
watching my kids and grandkids surf and play in the sand and waves.”
“I’m just so grateful that now I’ve recovered, I can start enjoying life and traveling again.”
Phyllis
GRANDMOTHER, WORLD TRAVELER
At the age of 19, Phyllis had a non-functioning kidney removed, but was able
to resume a normal, healthy life. Over the years, as an avid international traveler,
she visited many world regions with her husband and two children, including
Central America, Europe, Australia and the Pacific Islands. Then, in her 60s, she
began experiencing severe abdominal pain, and was eventually diagnosed as
having a large ruptured aneurysm on her only remaining kidney. As a result, her
doctor recommended surgery. The 13-hour procedure was extremely complex
and high-risk. The surgery was critical since if the kidney failed, she would have
been on dialysis for the rest of her life. A lengthy surgery like hers required close
monitoring during the procedure to reduce the risk of postoperative complications.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 16
CONSOLIDATED Balance Sheets
Set forth on the following pages is certain consolidated financial information of the Company. This information is qualified by the Company’s
complete financial results and consolidated financial statements, including the notes thereto, as they appear in our Annual Report on Form 10-K as
filed with the Securities and Exchange Commission for the fiscal year ended December 31, 2012. A copy of the Form 10-K is available on our web
site at ir.edwards.com.
Twelve months ended December 31, (in millions, except per share information) 2012 2011
Assets
CURRENT ASSETS
Cash and cash equivalents $ 310.9 $ 171.2
Short-term investments (Note 2) 210.5 279.3
Accounts receivable, net (Note 4) 321.1 283.8
Other receivables 26.4 36.9
Inventories, net (Note 4) 281.0 261.3
Deferred income taxes 43.4 43.9
Prepaid expenses 41.6 35.0
Other current assets 57.0 57.1
Total current assets 1,291.9 1,168.5
Long-term accounts receivable, net (Note 4) 9.9 24.6
Property, plant and equipment, net (Note 4) 373.3 304.3
Goodwill (Note 6) 384.7 349.8
Other intangible assets, net (Note 6) 67.0 66.9
Investments in unconsolidated affiliates (Note 7) 21.1 21.8
Deferred income taxes 47.3 20.0
Other assets 26.3 24.6
Total assets $2,221.5 $1,980.5
Liabilities and Stockholders’ Equity
CURRENT LIABILITIES
Accounts payable $ 74.7 $ 85.0
Accrued liabilities (Note 4) 263.2 234.8
Taxes payable 9.5 15.4
Total current liabilities 347.4 335.2
Long-term debt (Note 8) 189.3 150.4
Other long-term liabilities 205.5 157.0
Commitments and contingencies (Notes 8 and 16)
Stockholders’ equity (Note 12)
Preferred stock, $.01 par value, authorized 50.0 shares, no shares outstanding — —
Common stock, $1.00 par value, 350.0 shares authorized, 124.2 and 120.0 shares issued,
and 114.3 and 114.1 shares outstanding, respectively 124.2 120.0
Additional paid-in capital 489.0 300.5
Retained earnings 1,653.9 1,360.7
Accumulated other comprehensive loss (37.9) (37.5)
Treasury stock, at cost, 9.9 and 5.9 shares, respectively (749.9) (405.8)
Total stockholders’ equity 1,479.3 1,337.9
Total liabilities and stockholders’ equity $2,221.5 $1,980.5
The accompanying notes are an integral part of these consolidated financial statements.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 17
CONSOLIDATED Statements of Operations
Twelve months ended December 31, (in millions, except per share information) 2012 2011 2010
Net sales $1,899.6 $1,678.6 $1,447.0
Cost of goods sold 494.6 489.8 408.3
Gross profit 1,405.0 1,188.8 1,038.7
Selling, general and administrative expenses 705.3 642.4 550.0
Research and development expenses 291.3 246.3 204.4
Special charges (Note 3) 16.0 21.6 22.7
Interest expense 4.4 3.1 2.4
Interest income (4.8) (3.4) (0.9)
Other expense (income), net (Note 14) 1.7 (4.8) (8.1)
Income before provision for income taxes 391.1 283.6 268.2
Provision for income taxes (Note 15) 97.9 46.9 50.2
Net income $ 293.2 $ 236.7 $ 218.0
SHARE INFORMATION (NOTE 2):
Earnings per share:
Basic $ 2.55 $ 2.07 $ 1.92
Diluted $ 2.48 $ 1.98 $ 1.83
Weighted-average number of common shares outstanding:
Basic 114.9 114.6 113.7
Diluted 118.3 119.4 119.2
CONSOLIDATED STATEMENTS OF Comprehensive Income
Twelve months ended December 31, (in millions) 2012 2011 2010
Net income $293.2 $236.7 $218.0
Other comprehensive (loss) income, net of tax (Note 13):
Foreign currency translation adjustments 4.2 (5.2) (24.9)
Unrealized gain (loss) on cash flow hedges 1.1 16.8 (6.8)
Unrealized loss on available-for-sale investments for the period — (0.1) (0.8)
Reclassification of net realized investment loss (gain) to earnings 0.3 (1.0) 4.0
Defined benefit pension plans – net actuarial loss and other (6.0) (5.9) (5.7)
Other comprehensive (loss) income, net of tax (0.4) 4.6 (34.2)
Comprehensive income $292.8 $241.3 $183.8
The accompanying notes are an integral part of these consolidated financial statements.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 18
CONSOLIDATED Statements of Cash Flows
Twelve months ended December 31, (in millions) 2012 2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 293.2 $ 236.7 $ 218.0
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization 57.3 58.0 56.5
Stock-based compensation (Notes 2 and 12) 42.1 35.0 29.3
Excess tax benefit from stock plans (Notes 2 and 12) (56.5) (6.0) (55.1)
Deferred income taxes 8.1 (0.6) (11.2)
Special charges (Note 3) 14.9 21.2 22.7
(Gain) loss on trading securities (0.7) 1.0 (2.7)
Other 3.9 (1.1) (5.0)
Changes in operating assets and liabilities:
Accounts and other receivables, net (26.5) (53.7) (34.2)
Inventories, net (21.7) (57.0) (36.8)
Accounts payable and accrued liabilities 41.9 61.7 63.6
Prepaid expenses and other current assets 12.8 20.6 (2.5)
Other 5.0 (1.3) 8.8
Net cash provided by operating activities 373.8 314.5 251.4
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (120.7) (82.9) (61.8)
Proceeds from short-term investments (Note 2) 662.3 349.9 —
Purchases of short-term investments (Note 2) (592.6) (643.3) —
Acquisition (Note 5) (36.6) (42.6) —
Investments in intangible assets (7.0) (7.7) (1.2)
Proceeds from sale of assets 3.0 3.9 6.6
Proceeds from unconsolidated affiliates 2.8 9.1 2.2
Investments in unconsolidated affiliates (2.0) (2.3) (6.9)
(Investments in) proceeds from trading securities, net (0.6) 3.1 (0.4)
Other 0.9 — —
Net cash used in investing activities (90.5) (412.8) (61.5)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of debt 407.0 526.1 254.4
Payments on debt (367.5) (421.7) (302.8)
Purchases of treasury stock (344.1) (303.4) (200.0)
Equity forward contract related to accelerated share repurchase agreement (Note 12) (9.1) — —
Proceeds from stock plans 100.1 59.5 92.1
Excess tax benefit from stock plans (Notes 2 and 12) 56.5 6.0 55.1
Other 1.5 (1.7) (2.7)
Net cash used in financing activities (155.6) (135.2) (103.9)
Effect of currency exchange rate changes on cash and cash equivalents 12.0 8.6 (24.0)
Net increase (decrease) in cash and cash equivalents 139.7 (224.9) 62.0
Cash and cash equivalents at beginning of year 171.2 396.1 334.1
Cash and cash equivalents at end of year $ 310.9 $ 171.2 $ 396.1
SUPPLEMENTAL DISCLOSURES:
Cash paid during the year for:
2.4
Interest $ 4.4 $ 3.2 $
Income taxes $ 38.0 $ 15.4 $ 14.7
Non-cash investing and financing transactions:
Capital expenditures accruals $ 2.4 $ 4.3 $ 3.0
Distribution of treasury shares to effect stock split $
— $ — $ 970.3
The accompanying notes are an integral part of these consolidated financial statements.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 19
CONSOLIDATED Statements of Stockholders’ Equity
Accumulated
Additional Other Total
Paid-In Retained Comprehensive Stockholders’
(in millions) Shares Par Value Shares Amount Capital Earnings (Loss) Income Equity
Common Stock
Treasury Stock
BALANCE AT DECEMBER 31, 2009 76.1 $ 76.1 19.3 $(872.3) $1,056.0 $906.0 $(7.9) $1,157.9
Net income 218.0 218.0
Other comprehensive loss, net of tax (34.2) (34.2)
Common stock issued under equity plans,
including tax benefits 4.3 4.3 132.9 137.2
Stock-based compensation expense 29.3 29.3
Purchase of treasury stock 3.1 (200.0) (200.0)
Stock issued to effect stock split 36.6 36.6 (20.4) 970.3 (1,006.9) —
BALANCE AT DECEMBER 31, 2010 117.0 117.0 2.0 (102.0) 211.3 1,124.0 (42.1) 1,308.2
Net income 236.7 236.7
Other comprehensive income, net of tax 4.6 4.6
Common stock issued under equity plans,
including tax benefits 3.0 3.0 54.2 57.2
Stock-based compensation expense 35.0 35.0
Purchase of treasury stock 3.9 (303.8) (303.8)
BALANCE AT DECEMBER 31, 2011 120.0 120.0 5.9 (405.8) 300.5 1,360.7 (37.5) 1,337.9
Net income 293.2 293.2
Other comprehensive loss, net of tax (0.4) (0.4)
Common stock issued under equity plans,
including tax benefits 4.2 4.2 155.5 159.7
Stock-based compensation expense 42.1 42.1
Purchase of treasury stock 4.0 (344.1) (9.1) (353.2)
BALANCE AT DECEMBER 31, 2012 124.2
$124.2 9.9 $(749.9) $489.0 $1,653.9 $(37.9) $1,479.3
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 20
RECONCILIATION OF GAAP to Non-GAAP Financial Information
To supplement the consolidated financial results prepared
in accordance with Generally Accepted Accounting
Principles (“GAAP”), the Company uses non-GAAP
historical financial measures. The Company uses the
term “underlying” when referring to non-GAAP sales
information, which excludes discontinued and newly
acquired products and foreign exchange fluctuations,
and “excluding special items” or "adjusted for special
items" to also exclude gains and losses from special
items such as significant investments, litigation, and
business development transactions, and for 2012 to
include the tax benefit for the research and development
("R&D") tax credit, which will be required to be
recorded in 2013. Guidance for sales and sales growth
rates is provided on an "underlying basis," and projections
for diluted earnings per share, gross profit margin, selling,
general and administrative expenses ("SG&A"), R&D,
effective tax rate, net income and growth and free cash
flow are also provided on the same non-GAAP (or
“excluding special items”) basis due to the inherent
difficulty in forecasting such items. Management does
not consider the excluded items part of day-to-day
business or reflective of the core operational activities
of the Company as they result from transactions outside
the ordinary course of business.
Management uses non-GAAP financial measures internally
for strategic decision making, forecasting future results
and evaluating current performance. By disclosing
non-GAAP financial measures, management intends to
provide investors with a more meaningful, consistent
comparison of the Company’s core operating results and
trends for the periods presented. These non-GAAP fi-
nancial measures are used in addition to and in conjunc-
tion with results presented in accordance with GAAP
and reflect an additional way of viewing aspects of the
Company's operations that, when viewed with the Com-
pany's GAAP results, provide a more complete under-
standing of factors and trends affecting the Company's
business. These non-GAAP measures should be consid-
ered as a supplement to, and not as a substitute for, or
superior to, the corresponding measures calculated in ac-
cordance with GAAP.
Non-GAAP financial measures are not prepared in
accordance with GAAP; therefore, the information is not
necessarily comparable to other companies. The Company
is not able to provide a reconciliation of projected earnings
per share, gross profit margin, SG&A, R&D, effective tax
rate, net income and growth guidance, excluding special
charges, to expected reported results due to the unknown
effect, timing and potential significance of special charges
or gains, and management’s inability to forecast charges
associated with future transactions and initiatives.
Twelve months ended December 31, 2012
NON-GAAP NET SALES GROWTH BY PRODUCT LINE
Surgical Heart Valve Therapy
Transcatheter Heart Valves
Critical Care
GAAP net sales
growth rate
Impact of
foreign exchange
0.4%
65.4%
-0.1%
2.0%
8.7%
1.9%
Non-GAAP
net sales
growth rate
2.4%
74.1%
1.8%
Note: Numbers may not calculate due to rounding.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 21
RECONCILIATION OF GAAP to Non-GAAP Financial Information
Twelve months ended December 31, (in millions, except per share information) 2012 2011 2010 2009 2008
GAAP NET INCOME $293.2 $236.7 $218.0 $229.1 $128.9
Reconciling items:
Gross profit 8.1 — — (4.1) 4.7
Special charges (gains):
Realignment expenses, net 9.0 5.5 7.2 — (1.7)
Licensing of intellectual property 7.0 — — — —
European receivables reserve — 12.8 — — —
Settlements and litigation, net — 3.3 — 3.8 0.6
MONARC program discontinuation — — 8.3 — —
Investment impairments — — 7.2 1.6 —
Milestone receipt and net gain on sale of assets — — — (86.9) (14.9)
Charitable fund contribution — — — 15.0 —
Adjustment to capitalized patent enforcement costs — — — 3.7 8.2
Reserve reversal — — — (1.0) —
Acquisition of in-process technology and intelluctual
property — — — — 19.5
DexCom collaboration agreement — — — — 13.4
Benefit (provision) for income taxes:
Federal research and development tax credit 8.4
Tax effect on non-GAAP adjustments (5.4) (3.9) (4.1) 17.8 1.7
Remeasurement of uncertain tax position reserve (2.3) — — — —
Expiration of various statutes of limitations — (4.0) — — —
Tax rulings and settlements — (9.4) (9.8) — (10.1)
Resolution of outstanding transfer price issues — — (7.9) — —
NON-GAAP NET INCOME $318.0 $241.0 $218.9 $179.0 $150.3
Non-GAAP earnings per share:
Basic non-GAAP earnings per share $2.77 $2.10 $1.93 $1.59 $1.35
Diluted non-GAAP earnings per share $2.69 $2.02 $1.84 $1.52 $1.27
Weighted-average shares outstanding:
Basic 114.9 114.6 113.7 112.5 111.7
Diluted 118.3 119.4 119.2 117.5 119.2
NON-GAAP FREE CASH FLOW
Twelve months ended December 31, (in millions) 2012 2011 2010 2009 2008
Net cash provided by operating activities $373.8 $314.5 $251.4 $165.3 $153.2
Capital expenditures (120.7) (82.9) (61.8) (64.0) (50.6)
Reconciling items:
Japan securitization program termination — — — 39.0 —
Tax payment related to Bard milestone — — — 22.8 —
Charitable fund contribution — — — 15.0 —
U.S. securitization program termination — — — — 50.0
Tax settlement payment — — — — 13.0
NON-GAAP FREE CASH FLOW $253.1 $231.6 $189.6 $178.1 $165.6
NON-GAAP NET SALES GROWTH
Twelve months ended December 31 2012 2011 2010 2009 2007
GAAP NET SALES GROWTH RATE 13.2% 16.0% 9.5% 6.8% 13.4%
Impact of discontinued, newly acquired and other products 0.0% 0.0% 3.9% 2.9% 2.6%
Impact of foreign exchange 3.0% -4.4% -0.7% 1.4% -4.0%
NON-GAAP NET SALES GROWTH RATE 16.2% 11.6% 12.7% 11.1% 12.0%
Note: Numbers may not calculate due to rounding.
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 22
EXECUTIVE Management
MICHAEL A. MUSSALLEM
Chairman and
Chief Executive Officer
THOMAS M. ABATE
Corporate Vice President,
Chief Financial Officer
DONALD E. BOBO, JR.
Corporate Vice President,
Heart Valve Therapy
BRUCE P. GARREN
Corporate Vice President,
Public Affairs and
Special Counsel
JOHN H. KEHL, JR.
Corporate Vice President,
Strategy and Corporate
Development
RICH LUNSFORD
Corporate Vice President,
Cardiac Surgery Systems
CHRISTINE Z. MCCAULEY
Corporate Vice President,
Human Resources
JOHN P. MCGRATH, PH.D.
Corporate Vice President,
Quality, Regulatory,
Clinical
PAUL C. REDMOND
Corporate Vice President,
Global Corporate
Operations
STANTON J. ROWE
Corporate Vice President,
Advanced Technology and
Chief Scientific Officer
CARLYN D. SOLOMON
Corporate Vice President,
Critical Care and Vascular
PATRICK B. VERGUET
Corporate Vice President,
EMEA, Canada and Latin
America
HUIMIN WANG, M.D.
Corporate Vice President,
Japan and Asia Pacific
AIMEE S. WEISNER
Corporate Vice President,
General Counsel
LARRY L. WOOD
Corporate Vice President,
Transcatheter Heart Valves
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 23
CORPORATE Information
CORPORATE HEADQUARTERS
Edwards Lifesciences Corporation
One Edwards Way, Irvine, California 92614
(800) 4-A-HEART or (949) 250-2500
edwards.com
ANNUAL MEETING
The Annual Meeting of Stockholders will be held on
May 14, 2013 at 10:00 a.m. (Pacific) at the offices of
Edwards Lifesciences Corporation.
SEC FORM 10-K
A copy of Edwards Lifesciences’ annual report to the
Securities and Exchange Commission on Form 10-K is
available on the company’s web site at ir.edwards.com or
upon request to the Investor Relations department at
(949) 250-2806.
ANALYST COVERAGE
For a list of research firms and analysts who cover
Edwards Lifesciences, please visit the Investor Relations
section of the company’s web site at edwards.com.
TRANSFER AGENT
Correspondence about share ownership, account status,
the transfer or exchange of shares, lost stock certificates,
duplicate mailings or change of address may be directed to:
Computershare Investor Services
P.O. Box 43069, Providence, Rhode Island 02940-3069
(800) 446-2617 Hearing Impaired # TDD: (800) 952-9245
computershare.com
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP, Orange County, CA
STOCK SYMBOL
BOARD OF DIRECTORS
Edwards Lifesciences’ stock is traded on
The New York Stock Exchange (NYSE) under
the symbol EW.
Michael A. Mussallem
Chairman & Chief Executive Officer,
Edwards Lifesciences Corporation
INFORMATION ON THE INTERNET
Edwards Lifesciences’ web site at ir.edwards.com provides
access to a wide range of information for our customers,
patients and shareholders. Persons interested in investing
in Edwards Lifesciences are invited to visit the “Investor
Relations” section of our web site to access our press
releases, SEC filings and other company information.
Mike R. Bowlin
Former Chairman & Chief Executive Officer,
Atlantic Richfield Company
John T. Cardis
Former Senior Partner, Deloitte & Touche
Robert A. Ingram
General Partner, Hatteras Venture Partners
CORPORATE PUBLIC RELATIONS
Members of the news media should call (949) 250-5070.
William J. Link, Ph.D.
Managing Director & Co-Founder, Versant Ventures
INVESTOR INFORMATION
Shareholders, securities analysts and investors seeking
additional information about Edwards Lifesciences
should contact:
David K. Erickson
Vice President, Investor Relations
(949) 250-2806 Phone (949) 756-4515 Fax
investor_relations@edwards.com
Edwards Lifesciences is an affirmative action,
equal opportunity employer.
Barbara J. McNeil, M.D., Ph.D.
Professor and Chair, Department of Health Care Policy,
Harvard Medical School
David E.I. Pyott
Chairman, President & Chief Executive Officer,
Allergan, Inc.
Wesley W. von Schack
Former Chairman & Chief Executive Officer,
Energy East Corporation
EDWARDS LIFESCIENCES__2012 ANNUAL REPORT
PAGE 24
CERTIFICATION
On June 6, 2012, Edwards Lifesciences submitted to The New York Stock Exchange a certification signed by its Chief
Executive Officer that as of June 6, 2012 he was not aware of any violation by Edwards Lifesciences of the NYSE
corporate governance listing standards. In addition, the certifications signed by the Chief Executive Officer and Chief
Financial Officer required under Section 302 of the Sarbanes-Oxley Act were filed as an exhibit to Edwards Lifesciences’
Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
SAFE HARBOR STATEMENT
This Annual Report includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934. These forward-looking statements include, but are not limited to, the Company’s financial goals or
expectations for sales, gross profit margin, net income, earnings per share and free cash flow and other financial measures
as well as expectations regarding product introductions patient benefits and future success. Forward-looking statements are
based on estimates and assumptions made by management of the Company and are believed to be reasonable, though they
are inherently uncertain and difficult to predict. Our forward-looking statements speak only as of the date on which they
are made and we do not undertake any obligation to update any forward-looking statement to reflect events or circum-
stances after the date of the statement. Forward-looking statements involve risks and uncertainties that could cause actual
results or experience to differ materially from that expressed or implied by the forward-looking statements. Factors that
could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements
include the pace of adoption of the Company’s transcatheter valve programs and the ability of the Company to continue to
lead in the development of this field; the Company’s success in developing new products, obtaining regulatory approvals,
creating new market opportunities and launching new products on time; the availability and amounts of reimbursement for
the Company’s products; the availability of competitive products; the impact of currency exchange rates; the timing or results
of pending or future clinical milestones and trials; actions by the U.S. Food and Drug Administration and other regulatory
agencies; economic developments in key markets; and other risks detailed in the Company’s filings with the Securities and
Exchange Commission including its Annual Report on Form 10-K for the year ended December 31, 2012.
PATIENT PROFILES
The patient stories in this Annual Report and on edwards.com reflect their own personal experiences. Their results
are specific to them and may not be typical. Patient results vary. Please see edwards.com for more information regarding
our products and their risks. Talk to a doctor about treatment options.
EDWARDS LIFESCIENCES GLOBAL CORPORATE GIVING
It’s not our responsibility, it’s our passion!
On top of the millions of lives we touch each year with our
medical technologies, we are proud that our philanthropic efforts
are positively impacting millions more.
THROUGH GRANTS TO NONPROFIT ORGANIZATIONS from The Edwards Lifesciences Fund,
employee volunteerism, product donations and our employee matching gift program, we
are making a difference. We are increasing access to healthcare, supporting cutting-edge
cardiovascular research, engaging students in the fields of science, technology, engineering
and math, and helping our neighbors in difficult situations.
IN 2012, WE GREW OUR CHARITABLE GIVING from our Fund by 22 percent to $4.5 million
compared with the previous year, bringing our Fund’s giving since inception to nearly
$25 million in more than 50 countries around the world. In addition, we engaged our more
than 8,000 worldwide employees in the greatest amount of volunteer projects in Edwards’
history to strengthen the communities where they live and work. These are trends we want to
continue. Looking forward, we aspire to have our success fuel our philanthropy and plan to
grow our charitable giving consistent with our corporate financial performance. This will
help us to continue to positively impact people’s lives all around the globe.
FOR EDWARDS, OUR PHILANTHROPIC WORK isn’t just our corporate responsibility, it’s our
individual passion. We thank our philanthropic partners and our employees for their
dedication to helping others and for collaborating with us for the betterment of today
and the hope for a truly great tomorrow.
Our Utah employees participated in the American Heart Association’s Salt Lake City
Heart Walk to raise awareness and funds to address heart disease.
Our Credo
At Edwards Lifesciences, we are dedicated to providing innovative
solutions for people fighting cardiovascular disease.
Through our actions, we will become trusted partners with
customers, colleagues and patients creating a community unified in its mission
to improve the quality of life around the world. Our results
will benefit customers, patients, employees and shareholders.
We will celebrate our successes, thrive on discovery and continually
expand our boundaries. We will act boldly, decisively and with
determination on behalf of people fighting cardiovascular disease.
Helping patients is our life’s work, and
TRADEMARKS
Edwards, Edwards Lifesciences, the stylized E logo, 1-800-4-A-HEART, Carpentier-Edwards, Carpentier-Edwards Physio, Carpentier-Edwards Physio II, CENTERA,
EDWARDS INTUITY, EDWARDS INTUITY Elite, Edwards SAPIEN, Edwards SAPIEN XT, EV1000, FloTrac, GlucoClear, IntraClude, Life is Now, PARTNER, PARTNER II,
PediaSat, PERIMOUNT, PreSep, SAPIEN, SAPIEN 3, SAPIEN XT, ThruPort, TruWave, and VolumeView are trademarks of Edwards Lifesciences Corporation.
Edwards Lifesciences
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