Medtronic Plc. · NYSE:MDT
Medtronic — Q1 FY17 Earnings Presentation
15 slides from Medtronic's earnings presentation, Aug 25, 2016
Slide 1: Medtronic plc Q1 FY17 Earnings Presentation
MEDTRONIC PLC Q1 FY17 EARNINGS PRESENTATION AUGUST 25, 2016 • CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS • EPS GUIDANCE, REVENUE OUTLOOK, & OTHER ASSUMPTIONS Exhibit 99.2
Slide 2: Forward Looking Statements
Q1 FY17 Earnings Results | August 25, 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 developm
Slide 3: Consolidated Results & Group Revenue Highlights
CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS
Slide 4: Q1 FY17 revenue and EPS highlights
Q1 FY17 Earnings Results | August 25, 2016 | 4 Note: Prior year had an extra selling week, which had a ~$450M impact on revenue and $0.08-$0.10 impact on EPS Strong, balanced & diversified, MSD revenue growth2 • Taking into account FX and the extra week, revenue growth was in the upper half of the
Slide 5: MDT Q1 FY17 GAAP Select Financial Information
Q1 FY17 Earnings Results | August 25, 2016 | 5 MDT Q1 FY17 GAAP SELECT FINANCIAL INFORMATION Q1 FY17 Q1 FY16 Y/Y Growth / Y/Y Change Net Sales ($M) 7,166 7,274 -1% Gross Margin 68.4% 66.2% 220 bps SG&A ($M) 2,428 2,449 1% % of Sales 33.9% 33.7% (20 bps) R&D ($M) 556 558 0% % of Sales 7.8% 7.7% (10 b
Slide 6: MDT Q1 FY17 Y/Y EPS Walk
Q1 FY17 Earnings Results | August 25, 2016 | 6 MDT Q1 FY17 Y/Y EPS WALK 0.00 0.20 0.40 0.60 0.80 1.00 1.20 Q1 FY16, GAAP Non-GAAP Adjustments Q1 FY16, Non-GAAP Extra Week Impact Q1 FY16, Non-GAAP Adj. Performance Q1 FY17 CC FX Q1 FY17, Non-GAAP Non-GAAP Adjustments Q1 FY17, GAAP EPS Growth1: Mid-Tee
Slide 7: MDT Q1 FY17 Y/Y Operating Margin Changes
Q1 FY17 Earnings Results | August 25, 2016 | 7 MDT Q1 FY17 Y/Y OPERATING MARGIN CHANGES 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Q1 FY16, GAAP Non-GAAP Adjustments Q1 FY16, Non-GAAP Extra Week Impact Q1 FY16, Non-GAAP Adj. Performance Q1 FY17 CC FX Q1 FY17, Non-GAAP Non-GAAP Adjustments Q1 FY17
Slide 8: MDT Q1 FY17 Non-GAAP Select Financial Information
Q1 FY17 Earnings Results | August 25, 2016 | 8 MDT Q1 FY17 NON-GAAP SELECT FINANCIAL INFORMATION Q1 FY16 Q1 FY16 Estimated Extra week Impact Q1 FY16 Adj for extra week Q1 FY17 FX Impact $M / Change Q1 FY17 Constant Currency1 Q1 FY17 CC Adj2 Growth /Change Net Sales ($M) 7,274 ~($450) -- 7,166 (7) --
Slide 9: CVG Q1 FY17 Highlights
Q1 FY17 Earnings Results | August 25, 2016 | 9 CVG Q1 FY17 HIGHLIGHTS CRHF 53% CSH 30% APV 17% U.S. 51% Non- U.S. Dev 33% EM 16% Cardiac Rhythm & Heart Failure (CRHF) KEY PERFORMANCE DRIVERS2 High Power: -LSD • US market decline driven by replacements • ICDs: LSD growth – US Evera MRI™ • Visia AF™
Slide 10: MITG Q1 FY17 Highlights
Q1 FY17 Earnings Results | August 25, 2016 | 10 MITG Q1 FY17 HIGHLIGHTS Surgical Solutions KEY PERFORMANCE DRIVERS2 Strong MSD Growth in Surgical Solutions and PMR Patient Monitoring & Recovery (PMR) Advanced Surgical: +HSD • Focused on sustainable, long-term surgical market leadership, by improvin
Slide 11: RTG Q1 FY17 Highlights
Q1 FY17 Earnings Results | August 25, 2016 | 11 RTG Q1 FY17 HIGHLIGHTS Spine 36% Brain 28% Specialty 20% Pain 16% US 68% Non-US Dev 22% EM 10% KEY PERFORMANCE DRIVERS2 Strong Brain Therapies & Specialty Therapies Growth, Continued Improvement in US Spine; Offsets Declines in Pain Therapies Neurosur
Slide 12: Diabetes Q1 FY17 Highlights
Q1 FY17 Earnings Results | August 25, 2016 | 12 DIABETES Q1 FY17 HIGHLIGHTS US 58% Non-US Dev 34% EM 8% KEY PERFORMANCE DRIVERS2 Intensive Insulin Management (IIM) Strong, Broad-Based Performance Across All Three Divisions MiniMed® 630G MiniMed® Connect 12 Total Group Revenue $452M Revenue $M Actual
Slide 13: FY17 EPS Guidance, Revenue Outlook, & Other Assumptions
FY17 EPS GUIDANCE, REVENUE OUTLOOK, & OTHER ASSUMPTIONS
Slide 14: MDT FY17 EPS Guidance, Revenue Outlook & Other Assumptions
Q1 FY17 Earnings Results | August 25, 2016 | 14 MDT FY17 EPS GUIDANCE, REVENUE OUTLOOK & OTHER ASSUMPTIONS FY17 Revenue Growth Outlook – CCCW1 5% - 6% CVG Growth – CCCW Upper Half of MSD MITG Growth – CCCW MSD RTG Growth – CCCW Low-end of MSD Diabetes Growth – CCCW HSD to Low DD COV Synergies ~$225-
Slide 15: Appendix: Acronyms / Abbreviations
Q1 FY17 Earnings Results | August 25, 2016 | 15 APPENDIX ACRONYMS / ABBREVIATIONS 1 Other ASP Average Selling Price H1 / H2 First Half / Second Half APAC Asia Pacfic M&A Mergers & Acquisitions Bps Basis Points NC Not Comparable CE Conformité Européenne ND Not Disclosed CC Constant Currency Ops Opera