Medtronic Plc. · NYSE:MDT
Medtronic — Q1 FY2018 Earnings Presentation
20 slides from Medtronic's earnings presentation, Aug 22, 2017
Slide 1: Medtronic plc Q1 FY18 Earnings Presentation
MEDTRONIC PLC Q1FY18 EARNINGS PRESENTATION AUGUST 22, 2017 * CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS * DIVESTITURE IMPACT + REVENUE / EPS GUIDANCE & OTHER ASSUMPTIONS Exhibit 99.2 Medtronic Further Together
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS S. y een y them or any of Financial Data prepar ing, | This “non-GAAP” 9 For instance, forward- Forward-looking non-G: Pp forward- 1) Inaddition,
Slide 3: Consolidated Results & Group Revenue Highlights
CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS Medtronic
Slide 4: Q1 FY18 Highlights
Q1FY18 HIGHLIGHTS Revenue: * Delivered MSD revenue oon and DD EPS growth * Managed through headwinds of temp ensor supply constraint ir Diabetes Group and IT performance driven by continued growth in TAVR, AF and DCB insertable diagnostics Non-US Developed growth? driven by Japan and Western Europe
Slide 5: Q1 FY18 GAAP Select Financial Information
Q1 FY18 GAAP SELECT FINANCIAL INFORMATION Net Sales ($M) 7,390 7,166 3% Cost of Products Sold 2,349 2,261 4% Gross Margin 68.2% 68.4% 20 bps SG&A (SM) 2,485 2,428 2% % of Sales 33.6% 33.9% R&D ($M) 556 (1)% % of Sales 7.8% Other Expense, Net ($M) 9 69% Operating Profit 1,389 19% Operating Margin 18.
Slide 6: Q1 FY18 Y/Y EPS Walk
Q1 FY18 Y/Y EPS WALK EPS Double-digit EPS growth in line with long-term commitment pocccccr ser cccc ern ee 1 ' 11% Y/Y? ! 1 ' ) 1.20 $0.11 $1.14 | s ($0.38) so37 | $103 J ! ale 1.00 ! 1 0.80 4 ' 0.74 $0.66 ! : $ 0.60 ! : 0.40 t 1 1 0.20 H 4 1 0.00 + : 1 Qiryi7, QiFyi7, , Qiryi7, Performance qiryis
Slide 7: Q1 FY18 Y/Y Operating Margin Changes
Q1 FY18 Y/Y OPERATING MARGIN CHANGES Operating Margin Deli 10.1% 26.4% 0.5% 26.9% (0.4%) 26.5% (7.7%) = + 18.8% 16.3% QiFY17, Performance QUFY18 cc ed QiFyi8, QiFYi8, QiFyi8, Non-GAAP Non- Pp Non-GAAP & QLFYIBEaings Rents | Augut 22.2017 | 7 Medtronic
Slide 8: Q1 FY18 Non-GAAP Select Financial Information
Q1 FY18 NON-GAAP SELECT FINANCIAL INFORMATION Net Sales ($M) Cost of Products Sold? 3 Gross Margin? (20) bps SG&A ($M)? % of Sales 40 bps R&D (SM) - (1%) % of Sales 40 bps Other (Income) Expense, Net ($M) 47% (30) bps Operating % of Sales 10bps Leverage? Operating Profit? (40) Operating Margin? (40)
Slide 9: Key Performance Drivers
KEY PERFORMANCE DRIVERS? Rhythm & Heart Failure (CRHF) * Arrhythmia Mgmt: +LSD * Heart Failur Q1FY18 HIGHLIGHTS Coronary & Structural * Heart Valve Therapies: * Coronary: -LSD +Mid-Twenties + OE Jecine; goined *® = Extracorp. Therapies: -LSD Wy, Aortic & Peripheral Vascular (APV) * Aortic: +LSD * Pe
Slide 10: Key Performance Drivers
KEY PERFORMANCE DRIVERS? Surgical Solutions * Advanced Surgical: *MSD —_—_* General Surgical: +LSD Q1FY18 HIGHLIGHTS * Early Technologies: +LSD Patient Monitoring & Recovery (PMR) * Respiratory and Monitoring _* Patient Care/ DVT/ NI: -LSD Solutio +d to Cardi *Renal Care Solutions:+LSD [i=
Slide 11: Key Performance Drivers
KEY PERFORMANCE DRIVERS? - Spine! Q1 FY18 HIGHLIGHTS * Core Spine: +LSD = BMP: -LSD Infuse® Bone Graft * Kanghui: +LSD Brain Therapies * Neurovascular: +High-Teens * Neurosurgery: +HSD * Brain Modulatior Specialty Therapies * ENT: +MSD * Transformative Solutions: 3D (Formery known as Advances Eneray
Slide 12: Key Performance Drivers: Temporary Sensor Supply Constraint Impact
KEY PERFORMANCE DRIVERS? Temporary Sensor Supply Constraint Impact DIABETES Q1FY18 HIGHLIGHTS ‘sensor production capacity supplying pump/sensor systems tonew patients US sensor (tsp) LsD (Msp) (1%) 2) 8 15 (1%) 40% of total MDT sensor shipments Intensive Insulin Management (IIM) "= MiniMed® 670G Sys
Slide 13: Divestiture Impact
DIVESTITURE IMPACT _
Slide 14: Basis of Presentation of Revised Financial Metrics
BASIS OF PRESENTATION OF REVISED FINANCIAL METRICS 171 ly results of % July 29, 17, lines, effective Q2 FY18, will be Q2 FY17,Q3 FY17, Q4 FY17 and FY17 available at ttp://investorrelations.medtronic.com. dates or for period.
Slide 15: Q2 FY18 Revenue Reporting Changes — New MITG Structure
MDT Q2FY18 REVENUE REPORTING CHANGES — NEW MITG STRUCTURE Renal Care Solutions "= Renal Access LF rie earings Remdts | August 22.2017 | 35 Medtronic
Slide 16: Reporting Changes: Restated Historical Revenue
REPORTING CHANGES: RESTATED HISTORICAL REVENUE Recast to reflect divestiture & new MITG reporting structure All figures in millions World Wide nally Invasive Therapies Group imallly Invasive Therapies Group ati Medtronic Pic US Non-U.S. Developed Emerging Markets Emerging Markets TOTAL MITG
Slide 17: FY17 Revised Baseline Financial Metrics
MDT FY17 REVISED BASELINE FINANCIAL METRICS — SELECT P&L LINE ITEMS Note: Gross Margin, az Qs aa Fy7 Fyi7 Fva7 Net Sales (SM) ross Margin Operating Margin’ Diluted EPS*5 ($) aursi Rests 22,2017 | 17
Slide 18: FY18 EPS Guidance, Revenue Outlook & Other Assumptions
FY18 EPS GUIDANCE, REVENUE OUTLOOK, & OTHER ASSUMPTIONS Medtronic
Slide 19: FY18 Revenue / EPS Guidance & Other Assumptions
MDT FY18 REVENUE / EPS GUIDANCE & OTHER ASSUMPTIONS Guidance FX Assumptions Fis Q@2FYis airs: Rests 22,2017 | 19
Slide 20: Appendix: Acronyms / Abbreviations
APPENDIX ACRONYMS / ABBREVIATIONS rey ADA ~ av or eeaey com cnr crr-0 cnr cst ovo ce es bss or ovr er esc exvacor o Growth Hews B i APAC Asia Pacific cs Foreign Exchange 8s Basis Points fad Fiscal Your Generaty Accepted ec ‘Constant Currency GAAP = cov Covidien ca ‘Second Hit of Year ‘Outside the Un