Medtronic Plc. · NYSE:MDT
Medtronic — Q4 FY23 Earnings Presentation
39 slides from Medtronic's earnings presentation, May 25, 2023
Slide 1: Medtronic plc Q4 FY23 Earnings presentation
Not started Not started Work in progress Work in progress Update complete Update complete Medtronic plc Q4 FY23 Earnings presentation May 25, 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 & New Business ESG Appendix Contents Summary Highlights Highlights Assumptions Structure Table of contents Q4 FY23 New Portfolio FY23 Recap Financial Guidance & Executive Business ESG Appendix Highlights & Highlights Highlights Assumptions Summary Stru
Slide 4: Q4 FY23 Executive Summary
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Contents Summary Highlights Highlights Assumptions Structure Q4 FY23 Executive Summary
Slide 5: Q4 FY23 Key messages
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Q4 FY23 Key messages Contents Summary Highlights Highlights Assumptions Structure Strong execution underpinned by strategic focus and transformation efforts Strong finish to fiscal year with results ahead of expectations We
Slide 6: Q4 FY23 Financial summary
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Q4 FY23 Financial summary Contents Summary Highlights Highlights Assumptions Structure Revenue1 by segment Revenue1 by geography Non-U.S. Developed $2,629M +0.8% Y/Y Rep +8.3% Y/Y Org Cardiovascular $3,316M Diabetes United S
Slide 7: Q4 FY23 Regional organic revenue growth
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Q4 FY23 Regional organic revenue growth Contents Summary Highlights Highlights Assumptions Structure 5.6% WW organic growth driven by 16.4% EM growth ex. China and HSD growth in non-U.S. developed markets United States Non-U
Slide 8: Key product approvals
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Key product approvals Contents Summary Highlights Highlights Assumptions Structure Last 12 months: ~125 product approvals in key geographies1 Nexpowder™ Mazor X LigaPASS™ 2.0 Radiant™ balloon- Hugo™ Aurora EV-ICD™ Stealth™ L
Slide 9: Q4 FY23 Portfolio Highlights
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Contents Summary Highlights Highlights Assumptions Structure Q4 FY23 Portfolio Highlights
Slide 10: Cardiovascular $3,316M
Cardiovascular 19% CPV | $631M 7% growth driven by strong performance in Pacing, TAVR, Aortic & Diagnostics 0.0% Y/Y Rep +3.3% Y/Y Org Cardiac Rhythm & Heart Failure (CRHF) $3,316M Micra™ +12.0% Y/Y Rep • Cardiac Pacing Therapies: HSD growth; LDD WW Micra™ growth driven by increased Transcatheter +6
Slide 11: Medical Surgical $2,224M
Medical Surgical 5% growth driven by SI share capture and GI Genius™ performance; Hugo™ expansion continues 33% $2,224M RGR | $723M -2.3% Y/Y Rep Surgical (SI & SR) ProGrip™ +5.9% Y/Y Org -0.3 Y/Y Rep • Surgical: MSD growth (HSD ex-China) benefitted from improved product availability Self-Fixating +
Slide 12: Neuroscience $2,410M
Neuroscience 32% 6% growth with strength in U.S. Core Spine, NV, and ENT ST | $763M +11.5% Y/Y Rep Cranial & Spinal Technologies (CST) $2,410M +11.1% Y/Y Org Aible™ • MSD growth supported by 6% growth in U.S. core spine Spinal Surgical Suite +4.8% Y/Y Rep • Neurosurgery: LSD growth on increased shif
Slide 13: Diabetes $595M
Diabetes 53% FDA approval of MiniMed™ 780G system followed by lifting of warning letter paving way for Non-U.S. $595M future innovation Developed WW revenue increased LSD driven by strong performance in OUS markets -0.5% Y/Y Rep • U.S. approval of MiniMed™ 780G system with Guardian™ 4 sensor marks 1
Slide 14: FY23 Recap and Highlights
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Contents Summary Highlights Highlights Assumptions Structure FY23 Recap and Highlights
Slide 15: FY23 Key Highlights
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix FY23 Key Highlights Contents Summary Highlights Highlights Assumptions Structure Seeing benefit from comprehensive transformation Positioning the company for durable innovation-driven growth and creating shareholder Revenue1
Slide 16: FY23 Financial summary
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix FY23 Financial summary Contents Summary Highlights Highlights Assumptions Structure Revenue1 by geography Non-U.S. Developed p 4.7% Non-U.S. Developed Western Europe p MSD $9,408M JPN Japan p LSD -7.1% Y/Y Rep ~15% +4.7% Y/Y
Slide 17: Q4 and FY23 Financial Highlights
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Contents Summary Highlights Highlights Assumptions Structure Q4 and FY23 Financial Highlights
Slide 18: Q4 FY23 Income statement
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Q4 FY23 Income statement Contents Summary Highlights Highlights Assumptions Structure GAAP1 Non-GAAP1 ($ in millions) Q4 FY22 Q4 FY23 Y/Y ($ in millions) Q4 FY22 Q4 FY23 Y/Y Revenue $8,089 $8,544 5.6% Revenue $8,089 $8,544 5
Slide 19: FY23 Income statement
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix FY23 Income statement Contents Summary Highlights Highlights Assumptions Structure GAAP1 Non-GAAP1 ($ in millions) FY22 FY23 Y/Y ($ in millions) FY22 FY23 Y/Y Revenue $31,686 $31,227 -1.4% Revenue $31,686 $31,227 -1.4% Gross
Slide 20: Balance sheet
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Balance sheet Contents Summary Highlights Highlights Assumptions Structure Continue to maintain a strong balance sheet ($ in millions) Q4 FY22 Q3 FY23 Q4 FY23 Y/Y Q/Q Total Assets $90,981 $94,134 $90,948 ($33) ($3,186) Cash
Slide 21: Free cash flow
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Free cash flow Contents Summary Highlights Highlights Assumptions Structure Macro headwinds impacting free cash flow conversion in FY23 97% Included in free cash flow: FY19 FY20 FY21 FY22 FY23 ($ in billions) 83% 81% 80% 80%
Slide 22: Exercising decisive capital allocation
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Exercising decisive capital allocation Contents Summary Highlights Highlights Assumptions Structure Prioritizing innovation-driven growth investments while delivering consistent dividend returns to shareholders 5% CAGR Minor
Slide 23: Guidance & Assumptions
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Contents Summary Highlights Highlights Assumptions Structure Guidance & Assumptions
Slide 24: Guidance and assumptions
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Guidance and assumptions Contents Summary Highlights Highlights Assumptions Structure Organic Implied FY23 base1 revenue growth FX3 Inorganic Other2 reported guidance revenue range FY23 reported $31,227M FY24 REVENUE Less IP
Slide 25: New Segment Structure
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Contents Summary Highlights Highlights Assumptions Structure New Segment Structure
Slide 26: New reporting structure
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix New reporting structure Contents Summary Highlights Highlights Assumptions Structure Segment Changes to revenue hierarchy reporting structure Key Division Revenue will be reported for the 5 segments and at the division level
Slide 27: Reporting changes – recasted historical revenue
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Reporting changes – recasted historical revenue Contents Summary Highlights Highlights Assumptions Structure Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY 2022 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY 2023 Cardiovascular $2,875 $2,814 $2,731
Slide 28: Reporting changes – recasted historical revenue
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Reporting changes – recasted historical revenue Contents Summary Highlights Highlights Assumptions Structure Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY 2022 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY 2023 Cardiovascular $467 $506 $513 $526
Slide 29: Medtronic business structure
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Medtronic business structure Contents Summary Highlights Highlights Assumptions Structure Cardiovascular Neuroscience Medical Surgical Diabetes Other Learn more Learn more Learn more Learn more Learn more Cardiac Rhythm & He
Slide 30: Environmental, Social & Governance
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Contents Summary Highlights Highlights Assumptions Structure Environmental, Social & Governance
Slide 31: Environmental, social & governance
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Environmental, social & governance Contents Summary Highlights Highlights Assumptions Structure Leading in engagement, citizenship and innovation DiversityInc Human Rights Campaign Great Place to Work ® certified Dow Jones S
Slide 32: Environmental, social & governance: long-range objectives & targets
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Environmental, social & governance Contents Summary Highlights Highlights Assumptions Structure Long-range objectives & targets Patient Safety & Inclusion, Climate Product Product Quality Diversity & Equity Stewardship Stewa
Slide 33: Appendix
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Contents Summary Highlights Highlights Assumptions Structure Appendix
Slide 34: Q4 FY23 Revenue by portfolio and geography
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Q4 FY23 Revenue by portfolio and geography Contents Summary Highlights Highlights Assumptions Structure Worldwide U.S. Non-U.S. Developed Emerging Markets Revenue ($M)1 As reported Y/Y% Organic Y/Y% Revenue ($M)1 As reported
Slide 35: Q4 FY23 GAAP to non-GAAP reconciliations
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Q4 FY23 GAAP to non-GAAP reconciliations Contents Summary Highlights Highlights Assumptions Structure E Divestiture and (Gain) / Loss on Q4 FY23 Acquisition- Medical Device Certain Tax Q4 FY23 Q4 FY22 Y/Y Growth / Amortizati
Slide 36: FY23 Revenue by portfolio and geography
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix FY23 Revenue by portfolio and geography Contents Summary Highlights Highlights Assumptions Structure Worldwide U.S. Non-U.S. Developed Emerging Markets Revenue ($M)1 As reported Y/Y% Organic Y/Y% Revenue ($M)1 As reported Y/
Slide 37: FY23 GAAP to non-GAAP reconciliations
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix FY23 GAAP to non-GAAP reconciliations Contents Summary Highlights Highlights Assumptions Structure Debt Divestiture and (Gain) / Loss on E FY23 Acquisition- Medical Device Redemption Certain Tax FY23 FY22 Y/Y Growth / Amorti
Slide 38: Abbreviations & acronyms
Table of Executive Portfolio Financial Guidance & New Business ESG Appendix Abbreviations & acronyms Contents Summary Highlights Highlights Assumptions Structure Growth Business specific Business specific Other Revenue Decreased Y/Y q AAA Abdominal Aortic Aneurysm NV Neurovascular ACC American Colle
Slide 39: 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