Dollars in millions, except per share amount P.16 VARIAN MEDICAL SYSTEMS, INC. — 2013 ANNUAL REPORT FISCAL YEARS 2013 2012 2011 REVENUES $2,943 $2,807 $2,597 GROSS MARGIN $1,250 $1,196 $1,136 OPERATING EARNINGS $  609 $  594 $  588 OPERATING EARNINGS as a percentage of revenues 20.7% 21.2% 22.7% NET EARNINGS $  438 $  427 $  409 NET EARNINGS per diluted share $ 3.98 $ 3.76 $ 3.44 GROSS ORDERS $3,225 $3,223 $3,054 NET ORDERS $2,968 $3,122 $2,933 BACKLOG $2,869 $2,844 $2,530 $ 2.6B $ 585M $ 86M ONCOLOGY SYSTEMS X-RAY PRODUCTS “OTHER”SEGMENT GROSS ORDERS FY13 2013 HIGHLIGHTS / COMPANY FINANCIAL SUMMARY