Varian Investor Overview

Jefferies Conference - London

Neil Madle, Dir, International IR

Fiscal Year 2015 Results

EPS Non-GAAP

$4.29

GAAP

$4.09

Revenue Growth

Constant Currency

6%

As Reported

2%

FY15 Gross Orders Q4’15 FY’15

Oncology Systems -- $2.7 Billion#

Constant Currency 5% 6%

Reported Flat Flat

Imaging Components* -- $605 Million# (30%) (16%)

Particle Therapy $141M $317M

Fiscal Year 2015 Orders Growth

* Primarily transacted in US Dollars # Annual gross orders

Total FY2015 Year-Ending Company Backlog -- $3.5B; up 10%

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

5

Technology Leader in Growing Markets

• Varian Oncology Systems • Radiotherapy

• Radiosurgery

• Brachytherapy

• Varian Imaging Components • X-Ray Tubes

• Digital Flat Panels

• Security & Inspection Products

• Varian Particle Therapy • Proton therapy

Varian Oncology Systems

FY2016 Overview

Dynamic Oncology Market Economic driven healthcare transformation

– move to affordable, accessible, quality care

Expansion, investment in emerging & frontier markets

Modernization, replacements in developed markets

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)

Call to Action & LMIC Target

By 2020

of countries should

have cancer plans that

include radiotherapy.

Population Based

Cancer Control Plans

80%

CTA:

TARGET:

Calls to Action & LMIC Targets

25% increase in RT

capacity from 2015 to 2025

Expansion of Access

to Radiotherapy

CTAs: TARGETS:

Consolidate slides 15-17 into single slide

$46B of investment by 2025

to establish RT infrastructure

and training in LMIC

Sustainable Financing

to Expand Access to RT

80% of LMIC to include RT

services as part of universal

health coverage by 2020

Align Radiotherapy

Access with Universal

Health Coverage

Global Radiotherapy Talent Gaps

*8,700 new machines plus 13,000 replacements = 20,700 new machines

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.

What is Needed 2015 2035 GAP

Radiation Oncology Centers 7,700 10,900 3,200

Linear Accelerators 13,100 21,800 8,700*

Radiation Oncologists 23,200 45,500 22,300

Medical Physicists 10,000 39,300 29,300

Radiation Technologists 33,300 130,200 96,900

Keys to Closing Gap: Automation, Simplification, Productivity

The Varian Oncology Portfolio

VitalBeam™

Radiotherapy System

New Era Innovation Knowledge-Guided Oncology | Intelligent Treatment Delivery

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:

University of Michigan: Spine SBRT Study

Manual RapidPlan

Foy J, et al. An analysis of knowledge based planning for stereotactic body radiation

therapy of the spine [abstract]. Poster presentation at: American Association of

Physicists in Medicine (AAPM) 57th Annual Meeting & Exhibition; July 12-16,

2015; Anaheim, CA.

University of Michigan

Equivalent Quality

Manual RapidPlan

Time 60-90 min 15-20 min

KNOWLEDGE-GUIDED ONCOLOGY:

Royal Surrey County Hospital: Prostate Study

Manual RapidPlan™

Time 114 ± 86 min 21 ± 13 min

Equivalent

or better 30% 90%

Better 10% 90%

Courtesy, Royal Surrey County Hospital NHS Foundation, Guilford, UK

Data source on file

0

50

100

150

200

250

300

350

A1A2A3A4B1B2C1D1D2D3E1E2E3F1F2F3F4F5F6

Planning time (min)

conventional RapidPlan

KNOWLEDGE-GUIDED ONCOLOGY:

ARIA Takes the Lead

Winning MOSAIQ conversions

ARRA HITECH MU 2 achieved

InSightive Analytics ramping up

Infor™ interoperability

EPIC, Cerner, McKesson

Cloud-based offering with SaaS model

FlatIron alliance

ADVANCED DATA ANALYTICS

ADVANCED DATA ANALYTICS:

InSightive™ Analytics

50+ Orders

Customizable dashboards

Clinical & operational KPIs

Every ARIA site - potential 3800 Installs

ADVANCED DATA ANALYTICS

ADVANCED DATA ANALYTICS:

The Next Big Milestone –

High Definition Radiotherapy (HDRT)

INTELLIGENT TREATMENT DELIVERY:

Treatment Ideal:

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

Not for Sale – Work in Progress

HEALTHY TISSUE SPARED

Progress Made So Far & What’s Next

The Conformality Continuum

3D CONFORMAL IMRT IGRT SBRT HDRT

INTELLIGENT TREATMENT DELIVERY:

TODAY

High Definition Radiosurgery

Coplanar RapidArc SRS

4π High Definition SRS

Brain Stem Brain Stem

50% Rx Dose 50% Rx Dose

INTELLIGENT TREATMENT DELIVERY:

Not for sale – work in progress

Iterative CBCT Gaining Clarity

TrueBeam 2.0 Clinical CT Iterative CBCT

INTELLIGENT TREATMENT DELIVERY:

Long Term Growth Drivers Rising Global Cancer Burden

Need to Expand, Modernize RT Infrastructure

Demand for Cost-Effective Solutions

Winning Product Portfolio

TrueBeam Platform

Eclipse, RapidPlan

ARIA, InSightive Analytics, Velocity

Strong Innovation Pipeline

High Definition Radiation Therapy

Multi-Modality Imaging at Point of Care

Iterative CBCT

Largest Installed Base – Upgrades, Replacements

Service Momentum

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

27 | 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

3 installs

underway

1990s 2007 2009 2011 2014 2015

History of Proton Program

28 | 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

29 | VARIAN PARTICLE THERAPY

Hitachi - 3

IBA - 17

ProNova - 4

Varian - 22

Sumitomo - 1

2015 Treatment Rooms Ordered

Varian Establishing Market Leadership Position

30 | VARIAN PARTICLE THERAPY

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

Varian Imaging Components FY2016 Overview

Varian Imaging Components

We Make Components for X-ray Imaging Equipment

Price/Mix/FX Impact

Panel prices eroding;

FX helping competitors grab share

Losing $50M panel customer to

insourcing

SIP market freezing; tenders

delayed/stopped

FY15 Challenges

65%

24%

11% OEMs

Varian

Other

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

Source: Market Share Estimates based on Varian analysis

Flat Panels: Units 2% Sales (7%)

42%

30%

28% OEMs

Varian

Other

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/Opportunities

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

FY16 Growth Initiatives

Financial Goals

Return to revenue growth

Investing to resume op. inc. growth in 2017/18

Innovation

Low-cost detectors to be launched 2016

Sales & Marketing Focus

X-Ray tube projects with OEMs in Asia

Scale up Claymount, MeVis

Diversify SIP into Industrial NDT solutions

Expand Industrial, Aftermarket Channels

Thank You