Medtronic Plc. · NYSE:MDT
Medtronic — Q2 2023 Earnings Presentation
35 slides from Medtronic's earnings presentation, Nov 22, 2022
Slide 1: Medtronic plc Q2 FY23 Earnings presentation
Medtronic plc Q2 FY23 Earnings presentation November 22, 2022
Slide 2: Forward looking statements
Forward looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the developme
Slide 3: Table of contents
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Table of contents Executive Portfolio Financial Guidance & ESG Appendix Summary Highlights Highlights Assumptions
Slide 4: Q2 FY23 Executive Summary
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Q2 FY23 Executive Summary
Slide 5: Q2 FY23 Key messages
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q2 FY23 Key messages Contents Highlights Highlights Assumptions Summary Revenue shortfall due to slower market and supply recovery; Delivered EPS on stringent cost control Earnings delivered despite revenue below expectations Del
Slide 6: Q2 FY23 Financial summary
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q2 FY23 Financial summary Contents Highlights Highlights Assumptions Summary Growth in Neuroscience, Cardiovascular, and Diabetes partially offset by Medical Surgical Revenue Increased 2.2% Y/Y; product availability challenges of
Slide 7: Q2 FY23 Financial summary
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q2 FY23 Financial summary Contents Highlights Highlights Assumptions Summary Revenue1 by segment Revenue1 by geography Non-U.S. Developed $2,157M -13.0% Y/Y Rep +2.8% Y/Y Org Cardiovascular $2,773M Diabetes United States -1.9% Y/
Slide 8: Q2 FY23 Portfolio summary
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q2 FY23 Portfolio summary Contents Highlights Highlights Assumptions Summary Cardiovascular Neuroscience Coronary & Peripheral Vascular Neuromodulation $584M $419M -3.6% Y/Y Rep -3.7% Y/Y Rep +1.7% Y/Y Org +0.5% Y/Y Org Cranial &
Slide 9: Q2 FY23 Regional organic revenue growth
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q2 FY23 Regional organic revenue growth Contents Highlights Highlights Assumptions Summary United States Non-U.S. Developed 2.8% Western Europe Japan Australia & New Canada South Korea Zealand 1.2% Low-single digits Low-s
Slide 10: Key product approvals
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Key product approvals Contents Highlights Highlights Assumptions Summary Last 12 months: 180 product approvals in key geographies1 DPN indication Interstim™ X Nellcor™ SelectSure™ MRI CoreValve™ UNiD™ Spine Radiant™ balloon- Sure
Slide 11: Q2 FY23 Portfolio Highlights
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Q2 FY23 Portfolio Highlights
Slide 12: Cardiovascular - CRHF
Table of Executive Portfolio Financial Guidance & Highlights Highlights Assumptions ESG Appendix Cardiovascular - CRHF Contents Summary Pacing share gains continue; supply and procedure recovery improving Cardiac Rhythm & Heart Failure (CRHF) Micra™ AV and Cardiac Rhythm Management MSD VR Transcat
Slide 13: Cardiovascular – CPV & SHA
Table of Executive Portfolio Financial Guidance & Highlights Highlights Assumptions ESG Appendix Cardiovascular – CPV & SHA Contents Summary Evolut™ FX receiving extremely positive physician reception; Onyx Frontier™ driving U.S. share gains Coronary and Peripheral Vascular (CPV) Coronary & Renal De
Slide 14: Medical Surgical - SI
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Medical Surgical - SI Contents Highlights Highlights Assumptions Summary Installation and approval progress with Hugo™; procedure softness and VBP headwinds in SI Surgical Innovations (SI) V-Loc™ Wound Closure Device – Surgical I
Slide 15: Medical Surgical - RGR
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Medical Surgical - RGR Contents Highlights Highlights Assumptions Summary Growth in Perioperative Complications; meaningful ventilator sales decline Respiratory, Gastrointestinal, & Renal (RGR) Patient Monitoring MSD • LDD decl
Slide 16: Neuroscience - CST
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Neuroscience - CST Contents Highlights Highlights Assumptions Summary Strength in U.S. Core Spine, Biologics, Navigation, & Power Tools; partially offset by China Spine VBP & product availability in disposables Cranial & Spinal T
Slide 17: Neuroscience - Neuromodulation
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Neuroscience - Neuromodulation Contents Highlights Highlights Assumptions Summary Growth in SCS and improved TDD product availability; offset by replacement headwinds and Interventional share loss Neuromodulation DTM™ SCS on the
Slide 18: Neuroscience – Specialty Therapies
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Neuroscience – Specialty Therapies Contents Highlights Highlights Assumptions Summary Strength in ENT and Neurovascular WW; partially offset by continued competition Specialty Therapies Pelvic Health LSD Pipeline™ Shield Emboli
Slide 19: Diabetes
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Diabetes Contents Highlights Highlights Assumptions Summary Solid commercial execution; Continued strong 780G and CGM performance internationally Grew 3% driven by mid-teens international growth offset by LDD U.S. declines • Mini
Slide 20: Q2 FY23 Financial Highlights
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Q2 FY23 Financial Highlights
Slide 21: Q2 FY23 Income statement
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q2 FY23 Income statement Contents Highlights Highlights Assumptions Summary GAAP1 Non-GAAP1 ($ in millions) Q2 FY22 Q2 FY23 Y/Y ($ in millions) Q2 FY22 Q2 FY23 Y/Y Revenue $7,847 $7,585 -3.3% Revenue $7,847 $7,585 (3.3)% Gross Ma
Slide 22: Balance sheet
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Balance sheet Contents Highlights Highlights Assumptions Summary Continue to maintain a strong balance sheet ($ in millions) Q2 FY22 Q1 FY23 Q2 FY23 Y/Y Q/Q Total Assets $91,756 $89,914 $93,241 $1,485 $3,327 Cash & Equivalents $2
Slide 23: Free cash flow
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Free cash flow Contents Highlights Highlights Assumptions Summary Continue to target annual FCF conversion of 80% or higher 97% Included in free cash flow: FY18 FY19 FY23 FY20 FY21 FY22 YTD ($ in billions) 83% 81% 80% 80% target
Slide 24: Capital allocation
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Capital allocation Contents Highlights Highlights Assumptions Summary Balancing investment with return to shareholders Investments Return to shareholders Organic R&D Tuck-in M&A Dividend growth investments Increasing our R&D spen
Slide 25: Guidance & Assumptions
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Guidance & Assumptions
Slide 26: Guidance and assumptions
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Guidance and assumptions Contents Highlights Highlights Assumptions Summary Organic FY23 H2 Implied FY23 H2 FY22 H2 revenue growth FX1 reported revenue base REVENUE guidance range $15,852M +3.5 to + 4.0% ($0.93B) to ($1.03B) ~$15
Slide 27: Environmental, Social & Governance
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Environmental, Social & Governance
Slide 28: Environmental, social & governance
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Environmental, social & governance Contents Highlights Highlights Assumptions Summary Leading in engagement, citizenship and innovation Inclusive & engaging work Innovation & industry Citizenship awards environment leadership Kar
Slide 29: Environmental, social & governance: Long-range objectives & targets
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Environmental, social & governance Contents Highlights Highlights Assumptions Summary Long-range objectives & targets Patient Safety & Inclusion, Climate Product Product Quality Diversity & Equity Stewardship Stewardship 10% Redu
Slide 30: Appendix
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Appendix
Slide 31: Q2 FY23 Revenue by portfolio and geography
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q2 FY23 Revenue by portfolio and geography Contents Highlights Highlights Assumptions Summary Worldwide U.S. Non-U.S. Developed Emerging Markets Revenue ($M)1 As reported Y/Y% Organic Y/Y% Revenue ($M)1 As reported Y/Y% Organic Y
Slide 32: Q2 FY23 GAAP to non-GAAP financial information
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Q2 FY23 GAAP to non-GAAP financial information Summary E (Gain) / Loss on Q2 FY23 Acquisition- Medical Device RCS Impairment Certain Tax Q2 FY23 Q2 FY22 Y/Y Growth / Amortization Restruc
Slide 33: Medtronic business structure
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Medtronic business structure Contents Highlights Highlights Assumptions Summary Cardiovascular Medical Surgical Neuroscience Diabetes Learn more Learn more Learn more Learn more Cardiac Rhythm & Heart Failure Surgical Innovations
Slide 34: Abbreviations & acronyms
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Abbreviations & acronyms Contents Highlights Highlights Assumptions Summary Growth Business specific Business specific Other Other DD Double Digit AAA Abdominal Aortic Aneurysm LVAD Left Ventricular Assist Device AI Artificial In
Slide 35: Investor Relations contact information
Investor Relations contact information Ryan Weispfenning Brad Welnick Gregory Hertz Vice President & Head Sr. Director, Investor Sr. Director, Investor of Investor Relations Relations Relations investor.relations@medtronic.com