Medtronic Plc. · NYSE:MDT
Medtronic — Q3 FY23 Earnings Presentation
29 slides from Medtronic's earnings presentation, Feb 21, 2023
Slide 1: Medtronic plc Q3 FY23 Earnings presentation
Not started Work in progress Update complete Medtronic plc Q3 FY23 Earnings presentation February 21, 2023
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
Table of Executive Portfolio Financial Guidance & ESG Appendix Contents Summary Highlights Highlights Assumptions Table of contents Executive Portfolio Financial Guidance & ESG Appendix Summary Highlights Highlights Assumptions
Slide 4: Q3 FY23 Executive Summary
Table of Executive Portfolio Financial Guidance & ESG Appendix Contents Summary Highlights Highlights Assumptions Q3 FY23 Executive Summary
Slide 5: Q3 FY23 Key messages
Table of Executive Portfolio Financial Guidance & ESG Appendix Q3 FY23 Key messages Contents Summary Highlights Highlights Assumptions Strong execution as we urgently forge the path to durable growth Healthy rebound in revenue growth Delivered top and bottom line ahead of expectations; continue to u
Slide 6: Q3 FY23 Financial summary
Table of Executive Portfolio Financial Guidance & ESG Appendix Q3 FY23 Financial summary Contents Summary Highlights Highlights Assumptions Revenue1 by segment Revenue1 by geography Non-U.S. Developed $2,294M -5.9% Y/Y Rep +6.0% Y/Y Org Cardiovascular $2,772M Diabetes United States +1.0% Y/Y Rep $57
Slide 7: Q3 FY23 Regional organic revenue growth
Table of Executive Portfolio Financial Guidance & ESG Appendix Q3 FY23 Regional organic revenue growth Contents Summary Highlights Highlights Assumptions 4.1% WW organic growth driven by 16.9% EM growth ex. China and MSD growth in non-U.S. developed markets United States Non-U.S. Developed p 6.0% We
Slide 8: Key product approvals
Table of Executive Portfolio Financial Guidance & ESG Appendix Key product approvals Contents Summary Highlights Highlights Assumptions Last 12 months: ~150 product approvals in key geographies1 Interstim™ X LigaPASS™ 2.0 Nexpowder™ Hugo™ System Radiant™ balloon- Endoscopic Ligament Robotic Assisted
Slide 9: Q3 FY23 Portfolio Highlights
Table of Executive Portfolio Financial Guidance & ESG Appendix Contents Summary Highlights Highlights Assumptions Q3 FY23 Portfolio Highlights
Slide 10: Cardiovascular $2,772M
Cardiovascular 21% CPV | $581M 7% growth driven by strong performance in CRM, TAVR, & Diagnostics -3.6% Y/Y Rep +1.5% Y/Y Org Cardiac Rhythm & Heart Failure (CRHF) Micra™ AV and $2,772M +1.0% Y/Y Rep • Cardiac Pacing Therapies: HSD growth; mid-teens WW Micra™ growth driven by China VR Transcatheter
Slide 11: Medical Surgical $2,137M
Medical Surgical 3% growth (ex. vents, China) driven by SI share recapture and improved product availability 33% $2,137M RGR | $712M -7.7% Y/Y Rep Surgical Innovations (SI) -3.0% Y/Y Org -0.3% ex-Vents Y/Y -6.7 Y/Y Rep • Significant sequential share recapture in SI due to improved product availabili
Slide 12: Neuroscience $2,248M
Neuroscience 31% ST | $699M 7% growth with strength in U.S. Core Spine, SCS, NV, and ENT +10.4% Y/Y Rep $2,248M +11.4% Y/Y Org Cranial & Spinal Technologies (CST) • CST: MSD growth driven by Aible™ ecosystem of spine products Aible™ +4.9% Y/Y Rep Spinal Surgical Suite +7.3% Y/Y Org • LDD growth in U
Slide 13: Diabetes $570M
Diabetes 48% Solid commercial execution; continued strong MiniMed™ 780G and CGM performance internationally Non-U.S. $570M Developed Grew 3% driven by high-teens international growth offset by U.S. declines -2.4% Y/Y Rep • MiniMed™ 780G now launched in >90 countries, with strong adoption and continu
Slide 14: Q3 FY23 Financial Highlights
Table of Executive Portfolio Financial Guidance & ESG Appendix Contents Summary Highlights Highlights Assumptions Q3 FY23 Financial Highlights
Slide 15: Q3 FY23 Income statement
Table of Executive Portfolio Financial Guidance & ESG Appendix Q3 FY23 Income statement Contents Summary Highlights Highlights Assumptions GAAP1 Non-GAAP1 ($ in millions) Q3 FY22 Q3 FY23 Y/Y ($ in millions) Q3 FY22 Q3 FY23 Y/Y Revenue $7,763 $7,727 -0.5% Revenue $7,763 $7,727 -0.5% Gross Margin 68.3
Slide 16: Balance sheet
Table of Executive Portfolio Financial Guidance & ESG Appendix Balance sheet Contents Summary Highlights Highlights Assumptions Continue to maintain a strong balance sheet ($ in millions) Q3 FY22 Q2 FY23 Q3 FY23 Y/Y Q/Q Total Assets $91,804 $93,241 $94,134 $2,330 $893 Cash & Equivalents $3,479 $4,82
Slide 17: Free cash flow
Table of Executive Portfolio Financial Guidance & ESG Appendix Free cash flow Contents Summary Highlights Highlights Assumptions Macro headwinds impacting free cash flow conversion in FY23 97% Included in free cash flow: FY18 FY19 FY23 FY20 FY21 FY22 YTD ($ in billions) 83% 81% 80% 80% target Certai
Slide 18: Exercising decisive capital allocation
Table of Executive Portfolio Financial Guidance & ESG Appendix Exercising decisive capital allocation Contents Summary Highlights Highlights Assumptions Prioritizing innovation-driven growth investments while delivering consistent dividend returns to shareholders 5% CAGR; +10% in FY22 Minority inves
Slide 19: Guidance & Assumptions
Table of Executive Portfolio Financial Guidance & ESG Appendix Contents Summary Highlights Highlights Assumptions Guidance & Assumptions
Slide 20: Guidance and assumptions
Q2 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Guidance and assumptions Contents Highlights Highlights Assumptions Summary FY22 Q4 Organic revenue Implied reported FX2 Inorganic3 Q4 FY23 base1 growth guidance revenue range REVENUE $8,006M +4.5% to + 5.0% ($165M) to ($215M) $7
Slide 21: Environmental, Social & Governance
Table of Executive Portfolio Financial Guidance & ESG Appendix Contents Summary Highlights Highlights Assumptions Environmental, Social & Governance
Slide 22: Environmental, social & governance
Table of Executive Portfolio Financial Guidance & ESG Appendix Environmental, social & governance Contents Summary Highlights Highlights Assumptions Leading in engagement, citizenship and innovation Human Rights Campaign Dow Jones Sustainability Index DiversityInc Great Place to Work ® certified 100
Slide 23: Environmental, social & governance: Long-range objectives & targets
Table of Executive Portfolio Financial Guidance & ESG Appendix Environmental, social & governance Contents Summary Highlights Highlights Assumptions Long-range objectives & targets Patient Safety & Inclusion, Climate Product Product Quality Diversity & Equity Stewardship Stewardship 10% Reduction in
Slide 24: Appendix
Table of Executive Portfolio Financial Guidance & ESG Appendix Contents Summary Highlights Highlights Assumptions Appendix
Slide 25: Q3 FY23 Revenue by portfolio and geography
Table of Executive Portfolio Financial Guidance & ESG Appendix Q3 FY23 Revenue by portfolio and geography Contents Summary Highlights Highlights Assumptions Worldwide U.S. Non-U.S. Developed Emerging Markets Revenue ($M)1 As reported Y/Y% Organic Y/Y% Revenue ($M)1 As reported Y/Y% Organic Y/Y% Reve
Slide 26: Q3 FY23 GAAP to non-GAAP financial information
Table of Executive Portfolio Financial Guidance & ESG Appendix Q3 FY23 GAAP to non-GAAP financial information Contents Summary Highlights Highlights Assumptions E Q3 FY23 (Gain) / Loss on Medical Device RCS Impairment / Certain Tax Q3 FY23 Q3 FY22 Amortization Restructuring Acquisition-Related Y/Y G
Slide 27: Medtronic business structure
Table of Executive Portfolio Financial Guidance & ESG Appendix Medtronic business structure Contents Summary Highlights Highlights Assumptions Cardiovascular Medical Surgical Neuroscience Diabetes Learn more Learn more Learn more Learn more Cardiac Rhythm & Heart Failure Surgical Innovations Cranial
Slide 28: Abbreviations & acronyms
Table of Executive Portfolio Financial Guidance & ESG Appendix Abbreviations & acronyms Contents Summary Highlights Highlights Assumptions Growth Business specific Business specific Other Other DD Double Digit AAA Abdominal Aortic Aneurysm MDI Multiple Daily Injection ACC American College of Cardiol
Slide 29: 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