Managing Talent

Agenda A Brief Overview of Edwards Lifesciences The Connection of Culture and Values with Talent Management Support from the Top The Talent Development Review Process Training and Development (ASPIRE) Infrastructure and Systems support our Talent Aspirations

Our History Founded by Miles “Lowell” Edwards in 1958  Inventor and visionary, held 60+ patents Partnered with physicians to introduce breakthrough medical devices to the world  Albert Starr, Jeremy Swan, William Ganz, Thomas Fogarty, Alain Carpentier, Delos Cosgrove Changes in ownership  1958Edwards Laboratories  1968American Hospital Supply Corp.  1984Baxter International Inc.  April 2000Edwards Lifesciences (NYSE:EW)

Edwards Leads Growth Industry A leader in treating advanced cardiovascular disease Cardiovascular disease is progressive; leading killer and health expense Continuing transformation into an innovation-focused, faster-growing company  5,500+ employees  Global operations World’s Leading Killers

St.-Prex, Switzerland Horw, Switzerland Añasco, Puerto Rico Irvine Salt Lake City Mississauga, Canada Haina, Dominican Republic Sao Paulo, Brazil Mumbai, India Tokyo Miyazaki, Japan Edwards’ Global Operations Singapore 40+ offices in 35 countries.

Edwards’ Core Business is Robust 85% of sales come from products with #1 global positions  Leader in heart valve therapy  Leader in hemodynamic monitoring Strong brand recognition Trusted partner with leading clinicians Strong base from which innovation can flourish 2006 Global Heart Valve Sales* *Estimated 2006 Global Hemodynamic Monitoring Sales* $435 million $1.1 billion

Our Values and Culture

Edwards’ Aspirations Edwards will be recognized as a company that… Transforms patient care through innovative technology Excels as a trusted partner and global leader through the quality of our work Attracts and engages talented employees Strengthens our communities Creates exceptional shareholder value

Retention of Talent is Key Strategy for Growth 1. Exciting Work and Challenge 2. Career Growth, Learning and Development 3. Working with Great People and Relationships 4. Fair Pay 5. Supportive Management/Great Boss 48.4% 42.6% 41.8% 31.8% 25.1% Top 5 Retention Drivers Source: Career Systems International Research, 2005

Edwards Talent Aspiration Fills open positions within 50 days Achieves world class status on employee engagement and retention 100% completion of rigorous talent reviews and the implementation of action plans Edwards will be recognized as a company that attracts and retains talented employees.

EW Strategy Key Operating Drivers Annual Total Rewards Performance Management Talent Development Review Leadership Development

Growing Our Talent

T&D Magazine Profile: Feb 07

Differentiators for Success Talent Management is part of CEO Management Processes  14 CEO Talent Reviews Annually  5 Board of Directors Meetings/12 Executive Leadership Team Meetings with a Focus on Talent  Quarterly Regional Operating Reviews Visible and Consistent CEO and Sr. Leadership Support  Bonus Impact: Talent as a Performance Management Objective Flexible, Cross-functional Process and System  Generally consistent, not exactly the same Common Definitions/Traits/Competencies Focused management of Top Talent  70 Critical Jobs; 200 HiPo’s; 100 Key Talent  Differentiated Incentives for Top Talent

Talent Development Review Talent Dev Review Org Capabilities Assessment Top Talent Designation, Competencies & Traits, Assessment & Calibration Succession Planning Risk Assessment Stakeholder Feedback Per Preferred Next Move

TDR Goals for 2007 Edwards Core Traits & Competencies implemented Drive a 70/30 internal to external hire ratio for Director & Above positions Minimum of 2 people “Ready within 3 Years” for all Edwards critical jobs Increase % of “ready now” for director and manager positions

Center for Learning & Development

Pyramid of Leadership Development Leader as Teacher and Developer Senior Leaders Leaders Emerging Leaders Aspiring Leaders Leadership Development Management Development

Aspiring Leaders e-Learning Manager Program 7 Habits of Highly Effective People Best Management Practices Situational Leadership Project Management Building Global Business Acumen Meet Our Leaders Leaders Forum Leadership Library – reading plan

Emerging Leaders 7 Habits of Highly Effective People Best Management Practices Situational Leadership II Building Global Business Acumen Meet Our Leader Leaders Forum Interviewing Presentation Skills Getting Things Done Leadership Library

Best Management Practices Series Nominated by ELT/SLT 5-day series presented monthly Topics include: Interaction Management Coaching Resolving Conflict Developing Others Team Building Retaining Talent Interviewing Senior Leaders Leaders Emerging Leaders Aspiring Leaders

Individual Courses Employee Self Nominates; Manager Approves Interviewing Skills & Access to On-Line Tool by Interviewer’s Edge Situational Leadership II by Blanchard Finance for Non-Financial Managers E-Learning for Managers

Programs for Leaders ELLP (How We Lead at Edwards) ELLP II 7 Habits of Highly Effective People Situational Leadership II Getting Things Done

Senior Leaders ELLP (How we lead at Edwards) ELLP II Looking Glass Experience (360 Feedback) Executive Education Programs Train: Meet Our Leaders Train: Building Global Business Acumen

New e-Learning Programs Managers  Leading Effective Business Meetings  Techniques for Better Time Management  Foundations for Business Execution  Coaching for Performance  Effective Team Building Strategies  Leading Through Change  Basics of Budgeting  e-Learning Foundations

Managing Performance

Rewards Development - eLearning, Aspire, MyCareer KODs Individual PMO Setting Career Aspirations Discussion Annual Rewards Review Talent Dev Review Org Capabilities Assessment Top Talent Designation, Competencies & Traits, Assessment & Calibration Succession Planning Risk Assessment Stakeholder Feedback Per Preferred Next Move Jan- March April – September* July - September* Mid-Year Review PMO Progress TDR Output Development Objectives December - January Year-end review PMO Completion Finalization of comp & traits (changes only when appropriate) Jan - Feb Manager & Employee Meetings *These are general time frames. Flexibility exists to accommodate business needs. Additional Assessment activities may happen throughout year. Drive Employee Engagement 2006 Integrated Talent Management Process

Success Factors Online System

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

Helping Patients is Our Life’s Work, and