Medtronic Plc. · NYSE:MDT
Medtronic — Q2 FY18 Earnings Presentation
23 slides from Medtronic's earnings presentation, Nov 21, 2017
Slide 1: Medtronic plc Q2 FY18 Earnings Presentation
MEDTRONIC PLC Q2 FY18 EARNINGS PRESENTATION NOVEMBER 21, 2017 * CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS * HURRICANE MARIA IMPACT + DIVESTITURE IMPACT UPDATE + FREE CASH FLOW * REVENUE / EPS GUIDANCE & OTHER ASSUMPTIONS Exhibit 99.2 Medtroni Further, Together
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Inadditi ‘accessed using this link. BASIS OF PRESENTATION OF COMPARABLE FY17 FINANCIAL METRICS. July 29, 2017, 1 Q3FY17, Q4FY17
Slide 3: Consolidated Results & Group Revenue Highlights
CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS Medtronic
Slide 4: Q2 FY18 Highlights
MDT Q2 FY18 HIGHLIGHTS vth?, excluding Hurri img * Delivered 4Y + Managed through impact Santa Rosa wikfire pact on Coronary and Aortic businesses * 4.0% organic sevenue craw faite ted for hurricane impact; improved by 180 basis points sequen * Double-digit th gthin the Middle prea tiee Latin Americ
Slide 5: Q2 FY18 GAAP Select Financial Information
Q2 FY18 GAAP SELECT FINANCIAL INFORMATION Net Sales ($M) Cost of Products Sold Gross Margin SG&A ($M) % of Sales R&D (SM) % of Sales Other Expense, Net ($M) Operating Profit Operating Margin Diluted EPS ($) Medtronic
Slide 6: Q2 FY18 Y/Y EPS Walk
Q2 FY18 Y/Y EPS WALK EPS Ex-Hurricane EPS Growth +5% wie $0.41 $1.48 PAC oS ug ! nae i 2% Y/Y? 1 i 1 SORE eg eUelE| $0.05 ($0.03) | soo $' S a 1 1.07 > + lem | $1.04 $1.06 | J‘ i 1 i 1 0.80 — $0180) 1 ! 1 1 0.60 i 1 i 1 0.40 ' H i 1 0.20 i 1 i 1 i 1 0.00 + : | Q2FY17, Q2FY17, Q2FY17, | Q2FY17, Perfo
Slide 7: Q2 FY18 Y/Y Operating Margin Changes
Q2 FY18 Y/Y OPERATING MARGIN CHANGES Operating Margin Operating gin declined fo] further Q2 30.0% ~ 83% 0.4% i 27.6% 11.0%) 26.6% | 01% 26.7% 03% 27.0% — je = 5.0% 0.0% — Q2FY17, Q2FY17, Q2FY17, | Q2FY17, Performance Q2FY18 Q2FY18, Q2Fy18, Q2 FY18, GAAP Non-GAAP Divestiture! Comparable ccc Non-GAAP
Slide 8: Q2 FY18 Non-GAAP Select Financial Information
Q2 FY18 NON-GAAP SELECT FINANCIAL INFORMATION Net Sales ($M) Cost of Products Sold? Gross Margin? SG&A ($M)? % of Sales R&D ($M) % of Sales Other (Income) Expense, Net ($M)? % of Sales Operating Profit? Operating Margin? Diluted EPS? ($) 20bps 13 10bps 3% 7% (90) bps 3% Flat 1% 20bps 28% (20) bps Fl
Slide 9: Key Performance Drivers
KEY PERFORMANCE DRIVERS?! Cardiac Rhythm & Heart Failure (CRHF) “Arrhythmia Mgmt: +MSD_—* oe beanie Implantable The ICDs}: LSD decline + Continued strong uptake of Micra RX’ Q2 FY18 HIGHLIGHTS Low-DD * Diagne + Ste LINQ in stroke ngth of Rev F Soon: Hit fase continued V * Services & Solutions: -LSD
Slide 10: Q2 FY18 Highlights: Surgical Innovations (MITG)
MITG Q2 FY18 HIGHLIGHTS Surgical Innovations (SI) * Advanced Surgical: +HSD : IS adoption co M 0 drive Advanced Surgical growth 's during the quarts loads, specifically Reinforced Reloads 1d Energy driven by * General Surgical: -LSD + Declinesin OR Safety du jow-down in Situate Console sales = Respi
Slide 11: Key Performance Drivers: Spine and Specialty Therapies
KEY PERFORMANCE DRIVERS?! Spine *=BMP: +MSD Q2 FY18 HIGHLIGHTS “ Brain phatetreth -HSD 9 gro Specialty Therapies Pain Therapies * Interventional: +LSD OsteoCool® ‘ontinued Ost = rive ¢ indie Stre an & China due to BKP thy :
Slide 12: Diabetes
DIABETES Q2 FY18 HIGHLIGHTS KEY PERFORMANCE DRIVERS?! Intensive Insulin Management (IIM) = MiniMed® 670G System * OUS Product Uptake: with Guardian® Sensor 3: trong pump p vent C and Australia * fit ae inced insulin pump market 5 i Solute Nene (DSS) . cone Comnee Thera (NDT) patient aus launch in H2
Slide 13: Hurricane Maria Impact
HURRICANE MARIA IMPACT
Slide 14: Impact of Hurricane Maria on Q2 FY18 Results
MDT IMPACT OF HURRICANE MARIA ON Q2 FY18 RESULTS Diluted EPS? (s)
Slide 15: Divestiture Impact Update
DIVESTITURE IMPACT UPDATE
Slide 16: Q2 FY18 Revenue Reporting Changes - New MITG Structure
MDT Q2FY18 REVENUE REPORTING CHANGES — NEW MITG STRUCTURE MITG —Prior View MITG —New View Division Division Surgical Advanced Surgical "Advanced Stapling Surgical ‘Advanced Surgical" Advanced Stapling Solutions . Innovations = Advanced Energy = Hernia * Hernia = Gynecology General Surgical = Sutures
Slide 17: Reporting Changes: Restated Historical Revenue
MDT REPORTING CHANGES: RESTATED HISTORICAL REVENUE Recast to reflect divestiture & new MITG reporting structure Allfigures in $millions World Wide ally Invasive Therapies Group Surgical Innovations Respiratory, Gl & Renal TOTAL MEDTRONIC PLC ly Invasive Therapi Surgical Innovations Respiratory, Gl &
Slide 18: FY17 Revised Baseline Financial Metrics
MDT FY17 REVISED BASELINE FINANCIAL METRICS — SELECT P&L LINE ITEMS Note: Gross Margit @z Qs Qa Fyi7 FYI7 FvI7 Net Sales ($M) Gross Margin Operating Margin’? Diluted EPS*3($) tert Resutts | November 21,2017 | 18
Slide 19: Free Cash Flow
FREE CASH FLOW _
Slide 20: Components of Free Cash Flow
MDT COMPONENTS OF FREE CASH FLOW $ Billions Fy16 FY17 FY18 YTD Operating Cash Flow $5.2 $6.9 $1.6 CAPEX ($1.0) ($1.3) ($0.5) Free Cash Flow $4.2 $5.6 $1.1 Divestiture Impact? ($0.3) ($0.3) $0.1 E ree Cash Flow $3.9 $5.3 $1.2 Included in Operating Cash Flow: Ml Certain Litigation Payments, net?> $0.2
Slide 21: FY18 EPS Guidance, Revenue Outlook & Other Assumptions
FY18 EPS GUIDANCE, REVENUE OUTLOOK, & OTHER ASSUMPTIONS Medtronic
Slide 22: FY18 Revenue / EPS Guidance & Other Assumptions
MDT FY18 REVENUE / EPS GUIDANCE & OTHER ASSUMPTIONS Guidance FX Assumptions earings during the fiscal year
Slide 23: Appendix: Acronyms / Abbreviations
APPENDIX ACRONYMS /ABBREVIATIONS — = =mrssosctmayn sm sre = =o fev tac trent | HoT. bear bo Deets exe ——_—Bateonkhontarty MS Matron rpery ie anon 5 = too Low-Double Dts SS — NOT Norintensve Dabetes Therapies 5 Saree oe = ress <<<] See a ore ees APAC Asia Pacific 3 Foreign Exchange = = [i SSS SSS a S