Medtronic Plc. · NYSE:MDT

Medtronic — Q2 FY17 Earnings Presentation

16 slides from Medtronic's earnings presentation, Nov 22, 2016

  1. Slide 1: Medtronic plc Q2 FY17 Earnings Presentation

    MEDTRONIC PLC Q2 FY17 EARNINGS PRESENTATION NOVEMBER 22, 2016 • CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS • EPS GUIDANCE, REVENUE OUTLOOK, & OTHER ASSUMPTIONS

  2. Slide 2: Forward Looking Statements

    Q2 FY17 Earnings Results | November 22, 2016 | 2 FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements which provide current expectations or forecasts, including those relating to market and sales growth, growth strategies, financial results, use of capital, product develo

  3. Slide 3: Consolidated Results & Group Revenue Highlights

    CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS

  4. Slide 4: Q2 FY17 results summary and revenue drivers

    Q2 FY17 Earnings Results | November 22, 2016 | 4  Number of issues contributed to lower than expected revenue; largest impact from CVG and Diabetes • 3% revenue growth3 was below our Q2 expectations. Items are identifiable, and in many cases, temporary. • CVG: CRHF core implantables market decline;

  5. Slide 5: MDT Q2 FY17 GAAP Select Financial Information

    Q2 FY17 Earnings Results | November 22, 2016 | 5 MDT Q2 FY17 GAAP SELECT FINANCIAL INFORMATION Q2 FY17 Q2 FY16 Y/Y Growth / Y/Y Change Net Sales ($M) 7,345 7,058 4% Cost of Products Sold 2,326 2,182 7% Gross Margin 68.3% 69.1% (80 bps) SG&A ($M) 2,416 2,343 3% % of Sales 32.9% 33.2% 30 bps R&D ($M)

  6. Slide 6: MDT Q2 FY17 Y/Y EPS Walk

    Q2 FY17 Earnings Results | November 22, 2016 | 6 MDT Q2 FY17 Y/Y EPS WALK 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 Q2 FY16, GAAP Q2 FY16, Non-GAAP Adjustments Q2 FY16, Non-GAAP Performance Q2 FY17 CC FX Q2 FY17, Non-GAAP Q2 FY17, Non-GAAP Adjustments Q2 FY17, GAAP EPS Growth1: Mid-Teens; EPS Leverage

  7. Slide 7: MDT Q2 FY17 Y/Y Operating Margin Changes

    Q2 FY17 Earnings Results | November 22, 2016 | 7 MDT Q2 FY17 Y/Y OPERATING MARGIN CHANGES 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Q2 FY16, GAAP Q2 FY16, Non-GAAP Adjustments Q2 FY16, Non-GAAP Performance Q2 FY17 CC FX Q2 FY17, Non-GAAP Q2 FY17, Non-GAAP Adjustments Q2 FY17, GAAP ~150 bps Opera

  8. Slide 8: MDT Q2 FY17 Non-GAAP Select Financial Information

    Q2 FY17 Earnings Results | November 22, 2016 | 8 MDT Q2 FY17 NON-GAAP SELECT FINANCIAL INFORMATION Q2 FY17 Q2 FY16 FX Impact $M / Change Q2 FY17 Constant Currency1 Q2 FY17 CC Growth / Change Net Sales ($M) 7,345 7,058 50 -- 3% Cost of Products Sold 2,288 2,182 (58) -- 2% Gross Margin1 68.8% 69.1% (6

  9. Slide 9: CVG Q2 FY17 Highlights

    Q2 FY17 Earnings Results | November 22, 2016 | 9 CVG Q2 FY17 HIGHLIGHTS CRHF 54% CSH 29% APV 17% U.S. 52% Non- U.S. Dev 32% EM 16% Cardiac Rhythm & Heart Failure (CRHF) KEY PERFORMANCE DRIVERS1  Heart Failure: +HSD • Driven by recent HeartWare acquisition; integration on track • US market decline i

  10. Slide 10: MITG Q2 FY17 Highlights

    Q2 FY17 Earnings Results | November 22, 2016 | 10 MITG Q2 FY17 HIGHLIGHTS Surgical Solutions KEY PERFORMANCE DRIVERS1 MSD Growth in Surgical Solutions and PMR Patient Monitoring & Recovery (PMR)  Early Technologies: +LSD • Growth in Gastrointestinal Solutions driven by new product introductions inc

  11. Slide 11: RTG Q2 FY17 Highlights

    Q2 FY17 Earnings Results | November 22, 2016 | 11 RTG Q2 FY17 HIGHLIGHTS Spine 36% Brain 28% Specialty 20% Pain 16% US 69% Non-US Dev 21% EM 10% KEY PERFORMANCE DRIVERS1 Continued Improvement in Spine; Solid Brain Therapies & Specialty Therapies Growth Offsets Declines in Pain Therapies Neurosurger

  12. Slide 12: Diabetes Q2 FY17 Highlights

    Q2 FY17 Earnings Results | November 22, 2016 | 12 DIABETES Q2 FY17 HIGHLIGHTS US 59% Non-US Dev 32% EM 9% KEY PERFORMANCE DRIVERS1 Intensive Insulin Management (IIM) Temporary Disruption to Pump Buying Patterns, Robust Product Pipeline MiniMed® 630G MiniMed® Connect 12 Total Group Revenue $462M Reve

  13. Slide 13: FY17 EPS Guidance, Revenue Outlook, & Other Assumptions

    FY17 EPS GUIDANCE, REVENUE OUTLOOK, & OTHER ASSUMPTIONS

  14. Slide 14: MDT FY17 EPS Guidance, Revenue Outlook & Other Assumptions

    Q2 FY17 Earnings Results | November 22, 2016 | 14 MDT FY17 EPS GUIDANCE, REVENUE OUTLOOK & OTHER ASSUMPTIONS H2 FY17 FY17 Revenue Growth Outlook – CCCW1 MSD MSD CVG Growth – CCCW MSD, Q3 greater than Q4 -- MITG Growth – CCCW MSD -- RTG Growth – CCCW Low-end of MSD, Ramp Q3 to Q4 -- Diabetes Growth –

  15. Slide 15: Q2 FY17 Revenue Reporting Changes – New CRHF Structure

    Q2 FY17 Earnings Results | November 22, 2016 | 15 MDT Q2 FY17 REVENUE REPORTING CHANGES – NEW CRHF STRUCTURE CRHF – Prior View Low Power AF & Other High Power  Tachy  HF (partial)  Brady  HF (partial)  Diagnostics  AF Solutions  Hosp. Solutions  MCMS Revenue Grouping Product Lines CRHF – New

  16. Slide 16: Appendix: Acronyms / Abbreviations

    Q2 FY17 Earnings Results | November 22, 2016 | 16 APPENDIX ACRONYMS / ABBREVIATIONS 1 Growth DD Double Digits HSD High-Single Digit LDD Low-Double Digits LSD Low-Single Digit MSD Mid-Single Digit ASP Average Selling Price H1 / H2 First Half / Second Half APAC Asia Pacfic M&A Mergers & Acquisit ions

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