Dexcom

Leading CGM Further

JP MORGAN HEALTHCARE CONFERENCE
January 2017
 Safe Harbor Statement
This presentation contains forward-looking statements that are not purely historical regarding DexComs or
its managements intentions, beliefs, expectations and strategies for the future including those related to
DexComs expected revenue for the fourth quarter and fiscal year 2016, global patient base as of
December 31, 2016 and estimated revenue, gross margin, operating expenses and global patient base for
fiscal 2017. All forward-looking statements and reasons why results might differ included in this
presentation are made as of the date of this presentation, based on information currently available to
DexCom, deal with future events, are subject to various risks and uncertainties, and actual results could
differ materially from those anticipated in those forward-looking statements. The risks and uncertainties that
may cause actual results to differ materially from DexComs current expectations are more fully described
in DexComs annual report on Form 10-K for the period ended December 31, 2015, as filed with the
Securities and Exchange Commission on February 23, 2016, its most recent quarterly report on Form 10-Q
for the period ended September 30, 2016, as filed with the Securities and Exchange Commission on
November 1, 2016, and its other reports, each as filed with the Securities and Exchange Commission.
Except as required by law, DexCom assumes no obligation to update any such forward-looking statement
after the date of this report or to conform these forward-looking statements to actual results.
2016 Review: A Big Year for Dexcom
Financial Summary
Record preliminary, unaudited 2016 revenue reached approximately $570 million,
+42% over 2015.
Preliminary, unaudited 4Q16 revenue of approximately $168 million, a 28% increase
over 4Q15.
Worldwide patient base of approximately 200K at the end of 2016, up from
approximately 140K at the end of 2015.
- Globally, we estimate 80-90K new patients adopted Dexcom CGM in 2016.
- Continue to estimate OUS patients represent 20-25% of our mix.
2016 Review: A Big Year for Dexcom

Key Strategic Accomplishments

FDA approved a non-adjunctive claim for G5.
In the US, we estimate that we increased CGM penetration by more than 4% points.
Secured positive CGM reimbursement decision in Germany.
Expanded worldwide footprint with direct operations in the UK, Germany, Austria and
Switzerland.
Commenced construction on our Mesa, Arizona manufacturing site.
Initiated buildout of data platform.
2017 Outlook

Projecting 2017 revenue of $710 to $740 million, reflecting growth of approximately

25-30%
Targeting worldwide patient base at the end of 2017 of approximately
270K patients
Projecting gross margin in the range of 67% to 70% for the full year
Operating expenses up 20% to 25% for the full year
- Continued investments in sales and marketing, Verily program,
data, manufacturing, and OUS expansion.
2017 Outlook: Key Milestones
Medicare progress
Product launches
Non-adjunctive G5 Mobile
Android app (US)
Receiver
G5x applicator and lower profile transmitter
Other milestones
Completion of G6 filing
1st Verily product IDE and study
Key publications
Continued reimbursement expansion
CGM & Diabetes
Management
Diabetes Management Ecosystem

Blood Glucose Meters

Continuous Glucose Monitoring
Other
Pens
Disposable Pumps
Durable Pumps and
Supplies
Algorithms
Outcome Measurement
Decision Support &
Coaching

Clinicians
Insulins Hospitals
Other T2 Compounds Education
Other Medications
Diabetes Management Ecosystem

Blood Glucose Meters

Continuous Glucose Monitoring
Other
Pens
Disposable Pumps
Durable Pumps and
Supplies
Algorithms
Outcome
Measurement
Decision Support &
Coaching

Clinicians
Insulins Hospitals
Other T2 Compounds Education
Other Medications
 INSULIN
INTENSIVE
(T1+T2)

Cardiovascular disease
Blindness
Kidney failure
Nerve degeneration

HEALTHY GLUCOSE RANGE

Diminished cognitive function

Loss of consciousness
Potential death
 INSULIN
INTENSIVE
(T1+T2)

70%
Of the time patients are
outside healthy range
Glucose (mg/dl)
Intermittent monitoring
350
is not enough.

280 SMBG

120
210

140

HEALTHY GLUCOSE RANGE

80

0 2 4 6 8 10 12 14 16 18 20 22 24
Time (hours)
Glucose (mg/dl)
Intermittent monitoring
350
is not enough.
CGM

280

210

140

HEALTHY GLUCOSE RANGE

80

0 2 4 6 8 10 12 14 16 18 20 22 24
Time (hours)
Glucose (mg/dl)
Intermittent monitoring
350
is not enough.

280
OVER 4 HOURS ABOVE 210 BEFORE SMBG

210

ABOVE 140 FOR 13.5 HOURS

140

HEALTHY GLUCOSE RANGE

80

DANGEROUS LOW FOR 1 HOUR

0 2 4 6 8 10 12 14 16 18 20 22 24
Time (hours)
Leading Performance Starts with Accuracy
G6 raises the bar

30%

25% 26% Dexcom System MARD

by Generation
20%
Accuracy%

17%
15%
16%

13%
10%
9% 9%
8%
5%

0%
STS 3-Day SEVEN SEVEN Plus G4 PLATINUM G5 Mobile G6 Single Cal G6 No Cal
(2006) (2007) (2008) (2012) (2015) (Pre-Pivotal) (Pre-Pivotal)
 Competition claims to be good enough
Dont believe everything you read

Avoid testing
Eliminate Not reporting
on a real- Mix accuracy
world patient patients from on full pooled
comparisonsthe data set data set
Exclude population Avoid using between
sensor
failures in final Not data from the SMBG & YSI
Minimize
analysis accounting first day of outliers by not
for subjects Limit testing
sensor use manipulating
that dropout in the aggressively

Select only Exclude hyperglycemic

Alter definition good sensorpatients with
of severe lots for use in
range
Allow therapy
Manufacture studies
hypoglycemia
hypo- and or hypo- changes
for use in a hyperglycemia during trial
clinical trial unawareness
 Performance that drives outcomes
DIaMonD Study demonstrated a 1.0% A1c reduction with CGM alone

1%-point or greater drop in A1c reduces

8.6% 8.6% long-term complication rates by ~40%1,2

8.2%
Mean HbA1c, %

8.1%

7.7%
7.6%

Baseline Week 12 Week 24

Usual care CGM

1) Diabetes 1996;45:1289-1298; Lancet. 1998; 352:837-853.

2) American Diabetes Association. Eeg-Olofsson K, et al "HbA1c reduction and risk of cardiovascular diseases in type 2 diabetes: An observational study from the swedish NDR" ADA 2012
Dexcom is the leader in continuous glucose measurement
We will maintain our lead with focus

Performance Adherence Cost

Industry leading Patient experience: Longer duration

performance improves New applicator, smaller sensors, next
with G6 & G7 size, ease-of-use generation
Completely eliminate Connectivity: Share, transmitter, Verily
finger sticks Android, insulin delivery Novel business
& data integration models
Non-Adjunctive Claim
The first & only CGM approved as a replacement for finger stick testing for diabetes
treatment decisions
G5x: Focused on the patient experience

Smaller Profile
Lower system cost
Automated insertion
Simplified training
 G6: Focused on the patient experience

G5 G6 G6 G6
2/day 1/day 1/day No Cal
ALL DATA ADULTS ALL DATA

N 2263 993 646 1009

Overall MARD 9% 8.1% 7.2% 8.8%

%20/20 93% 96.1% 99.4% 95.5%
Size Reduction
1x per Day Calibration N 680 161 95 165
10 Day Use Life Day 1 MARD 10.7% 10.4% 7.3% 9.8%
Interference Blocking %20/20 84% 90.1% 100% 94.5%
Performance Improvement
* G6 data is pre-pivotal.
The Future of CGM Technology

+
Factory Calibrated
14 Day Use Life
Real-Time CGM
Single-use transmitter
Significant cost reduction
 This is one of the largest public health crises
of our time.

700

PRE-DIABETES
400
MILLIONS

NON-INTENSIVE
TYPE 2

INSULIN INTENSIVE
(TYPE 1 + TYPE 2)
0
1980 2014 2025
Source: NCD Risk Factor Collaboration, Published April 2016
We have made progress

$600

$500
>50%
$400
CAGR
Revenue ($MM)

$300

$200

$100

$0
2012 2013 2014 2015 2016E

Total Revenue
But, we have only just started.

USIntensiveInsulinPopulation USTotalDiabetesPopulation

Current US
Current US
CGM patients
CGM patients

3 millionUS 30million
patients USpatients

T1/T2CGM T1SMBG
T1/T2CGM T1SMBG T2IntensiveSMBG T2IntensiveSMBG T2NonIntensive
T2 Non-Insulin
We are driving a paradigm shift in diabetes management
Over time, CGM will help answer more key questions for all patients with diabetes

INSULIN NON-
INTENSIVE INTENSIVE
(T1+T2) (T2)

Is it safe to Are her lifestyle

walk home from changes having an
school? Go to baseball impact?
practice?
Is the $400/month
How will his glucose medicine she is taking
behave in the next few working?
hours?
Will she need to start
Should he give himself using needles in the
insulin now? near future?
Real time glucose information is the key to
advanced diabetes management
We have made significant investments to build a data platform
- Combine glucose, demographic and device data
Early phase internal analytic projects have begun
- Patient patterns
- Outcomes
- Population analytics
API platform has been established several potential partners have stepped forward
Key strategic relationships we will work with others to provide the best analytical tool
New models will be developed for different conditions
T2 CGM Impact

29% 3X
DECREASE IMPROVEMENT
IN AVERAGE IN
GLUCOSE TIME-IN-RANGE

Time in range 82.7% HIGH Time in range 46.9% HIGH

Average glucose Average glucose
(CGM) 235 mg/dL (CGM) 167mg/dL 17.3% IN RANGE 52.6% IN RANGE

0.0% LOW 0.5% LOW

CGM will be a key element of cost reduction
in diabetes management
Many diabetes cost questions are unanswered
- When does a patient move to insulin long-acting/fast acting?
- What is the actual cost and therapeutic benefit of sophisticated insulin delivery systems?
CGM?
- Can we predict and identify those at risk for expensive hospitalizations and keep these
patients from re-admission when they leave and shorten their stay?
- Is the patient actually taking the medications that the system is providing them?
All of our future systems are designed to produce the data necessary to answer these and
many other questions
Every thing we are doing is aimed at reducing our costs on the systems and ultimately
making CGM available to every one
A technology that can deliver benefits to every
healthcare constituent through improved outcomes
and reduced costs

PATIENT
Navigate day to day
decisions; feedback loop
for precision understanding
of glucose response
POPULATIONS
Insight on what
PAYOR approaches have driven
impact for others with
Deeply understand
similar physiology
efficacy of treatment to
CLINICIANS better target care to
Navigate who needs more improve outcome, while
attention; develop reducing cost
hyperpersonalized
treatment plans
Making it possible to
change their future.