CONFIDENTIAL | RESTRICTED Industry Leading Innovation with IBM and Apple September 14, 2015 Committee on Finance and Information Technology (CFIT)

CONFIDENTIAL | RESTRICTED 2 IT TOOK 38 YEARS TO GET RADIOS TO 50 MILLION USERS. Twitter exceeded that in 9 months. THERE ARE NOW MORE MOBILE DEVICES THAN PEOPLE. By 2017, another billion will be connected via mobile. EVERYTHING GENERATES DATA.

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4 By partnering with technology companies, we believe we can accelerate the transformation 4 Personalized patient engagement and coaching solutions Advanced data analysis and insights Seamless user experience and intuitive design Integrated solutions designed to improve the quality and speed of recovery

CONFIDENTIAL | RESTRICTED 5 The opportunity to transform Surgical Intervention lies in a missing ecosystem Connects patients to an elite care team, tailored just for them Connects all patient data – clinical, EMR, social, digital & behavioral – & insights for physicians, hospital systems & payors to drive value Tailored and personalized “people like me” data attracts & engages individuals earlier; helps put & keep them on the right track Contemplate care Decide on surgery Pre-op to post- op “Ow”“Wow” Virtual coach maintains 1:1 relationships & enables effective digital rehabilitation Mission generator guides patients to set achievable goals & action plans Adapts care plan throughout the journey to meet patients no matter who & where they are Establishes richer & more sustainable support network through digital, social & community

CONFIDENTIAL | RESTRICTED 6 Watson will personalize care in the ecosystem, differentiating outcomes RecoverPrepare Surgery Phase 1 Individual investigates self-care options Phase 2 Individual looks to family doctor or friends for advice Phase 3 Individual consults healthcare professionals Phase 4 Patient commits to surgery Individual experiences knee pain Social media analytics – what are people saying? Personality insights – learn about the individual to better engage them User experience analytics – how is the individual responding to our solution? Patient Similarity – who else is like me and what are they experiencing? Leverage Explorys data of 50M patients Careflow visualization – what can I expect along the way? Commit Sensor analytics – leverage mobile and wearable data for activity insights Seek adviceSelf-manage

CONFIDENTIAL | RESTRICTED 7 7 Healthy Knees – A collaboration to drive transformation in Surgical Intervention Care team offering Hospital/payor offering Patient Offering

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