Medtronic Plc. · NYSE:MDT
Medtronic — Q1 2023 Earnings Presentation
35 slides from Medtronic's earnings presentation, Aug 23, 2022
Slide 1: Medtronic plc Q1 FY23 Earnings presentation
Medtronic plc Q1 FY23 Earnings presentation August 23, 2022
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
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Table of contents Executive Portfolio Financial Guidance & ESG Appendix Summary Highlights Highlights Assumptions
Slide 4: Q1 FY23 Executive Summary
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Q1 FY23 Executive Summary
Slide 5: Q1 FY23 Key messages
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q1 FY23 Key messages Contents Highlights Highlights Assumptions Summary Remain confident in our ability to address recent challenges and deliver on strategic priorities Revenue ahead of guidance Quarter played out largely as expe
Slide 6: Q1 FY23 Financial summary
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q1 FY23 Financial summary Contents Highlights Highlights Assumptions Summary Outperformance in Neuroscience and Diabetes with in-line Cardiovascular results, partially offset by Medical Surgical Revenue Declined 3.6% Y/Y; supply
Slide 7: Q1 FY23 Financial summary: revenue by segment and geography
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q1 FY23 Financial summary Contents Highlights Highlights Assumptions Summary Revenue1 by segment Revenue1 by geography Non-U.S. Developed $2,328M -10.5% Y/Y Rep +1.6% Y/Y Org2 Cardiovascular $2,713M Diabetes United States -6.1% Y
Slide 8: Q1 FY23 Portfolio summary
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q1 FY23 Portfolio summary Contents Highlights Highlights Assumptions Summary Cardiovascular Neuroscience Coronary & Peripheral Vascular Neuromodulation $579M $405M -6.6% Y/Y Rep -8.0% Y/Y Rep -2.6% Y/Y Org -4.5% Y/Y Org Cranial &
Slide 9: Q1 FY23 Regional organic revenue growth
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q1 FY23 Regional organic revenue growth Contents Highlights Highlights Assumptions Summary United States Non-U.S. Developed 1.6% Western Europe Japan Australia & New Canada South Korea Zealand 8.7% Low-single digits Mid-s
Slide 10: Key product approvals
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Key product approvals Contents Highlights Highlights Assumptions Summary Last 12 months: 200+ product approvals in key geographies1 Micra™ Pediatric Indication LigaPASS™ 2.0 NV Radial PillCam™ AV TPS Freezor™ & Ligament Artery Ac
Slide 11: Q1 FY23 Portfolio Highlights
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Q1 FY23 Portfolio Highlights
Slide 12: Cardiovascular - CRHF
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Cardiovascular - CRHF Contents Highlights Highlights Assumptions Summary Pacing share gains continue; working through product availability Cardiac Rhythm & Heart Failure (CRHF) Micra™ AV and VR Transcatheter Cardiac Rhythm Manage
Slide 13: Cardiovascular – CPV & SHA
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Cardiovascular – CPV & SHA Contents Highlights Highlights Assumptions Summary Evolut™ FX receiving extremely positive physician reception; Onyx Frontier™ launches in U.S. Coronary and Peripheral Vascular (CPV) Coronary & Renal De
Slide 14: Medical Surgical - SI
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Medical Surgical - SI Contents Highlights Highlights Assumptions Summary Progress with Hugo™; expected supply challenges in SI with strength in Hernia, Sutures Surgical Innovations (SI) V-Loc™ Wound Closure Device – Surgical Inno
Slide 15: Medical Surgical - RGR
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Medical Surgical - RGR Contents Highlights Highlights Assumptions Summary Growth in Patient Monitoring Advanced Parameters; meaningful ventilator sales decline Respiratory, Gastrointestinal, & Renal (RGR) Patient Monitoring LSD
Slide 16: Neuroscience - CST
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Neuroscience - CST Contents Highlights Highlights Assumptions Summary Strength in U.S. Core Spine, capital benefits from flexible financing; Offset by China and Biologics Cranial & Spinal Technologies (CST) Catalyft™ Expandable S
Slide 17: Neuroscience - Neuromodulation
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Neuroscience - Neuromodulation Contents Highlights Highlights Assumptions Summary New implant share gains in Brain Modulation and SCS; offset by SCS market softness and difficult TDD comps Neuromodulation DTM™ SCS on the Intellis
Slide 18: Neuroscience – Specialty Therapies
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Neuroscience – Specialty Therapies Contents Highlights Highlights Assumptions Summary Strength in Neurovascular and OUS Pelvic Health; declines on increased competition and supply chain constraints Specialty Therapies Pelvic Heal
Slide 19: Diabetes
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Diabetes Contents Highlights Highlights Assumptions Summary Strong 780G and CGM performance in Europe; Simplera™ CE Mark submitted Overall revenues up slightly Y/Y with LDD growth in WE and Emerging Markets offset by mid- teens d
Slide 20: Q1 FY23 Financial Highlights
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Q1 FY23 Financial Highlights
Slide 21: Q1 FY23 Income statement
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q1 FY23 Income statement Contents Highlights Highlights Assumptions Summary GAAP1 Non-GAAP1 ($ in millions) Q1 FY22 Q1 FY23 Y/Y ($ in millions) Q1 FY22 Q1 FY23 Y/Y Revenue $7,987 $7,371 -7.7% Revenue $7,987 $7,371 -7.7% Gross Mar
Slide 22: Balance sheet
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Balance sheet Contents Highlights Highlights Assumptions Summary Continue to maintain a strong balance sheet ($ in millions) Q1 FY22 Q4 FY22 Q1 FY23 Y/Y Q/Q Total Assets $91,802 $90,981 $89,914 ($1,888) ($1,067) Cash & Equivalent
Slide 23: Free cash flow
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Free cash flow Contents Highlights Highlights Assumptions Summary Continue to target annual FCF conversion of 80% or higher 97% Included in free cash flow: FY18 FY19 FY23 FY20 FY21 FY22 YTD ($ in billions) 83% 81% 80% 80% target
Slide 24: Capital allocation
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Capital allocation Contents Highlights Highlights Assumptions Summary Balancing investment with return to shareholders Investments Return to shareholders Organic R&D Tuck-in M&A Dividend growth investments Increasing our R&D spen
Slide 25: FY23 Guidance & Assumptions
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary FY23 Guidance & Assumptions
Slide 26: FY23 Guidance and assumptions
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix FY23 Guidance and assumptions Contents Highlights Highlights Assumptions Summary REVENUE FY22 Organic revenue Implied revenue FX1 base growth guidance range Q4 earnings call -$1.0B to -$1.1B ~$31.9B - $32.3B May 26, 2022 $31,686M
Slide 27: Environmental, Social & Governance
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Environmental, Social & Governance
Slide 28: Environmental, social & governance
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Environmental, social & governance Contents Highlights Highlights Assumptions Summary Leading in engagement, citizenship and innovation Inclusive & engaging Innovation & industry Citizenship awards work environment leadership Kar
Slide 29: Environmental, social & governance: long-range objectives & targets
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Environmental, social & governance Contents Highlights Highlights Assumptions Summary Long-range objectives & targets Patient Safety & Inclusion, Climate Product Product Quality Diversity & Equity Stewardship Stewardship 10% Redu
Slide 30: Appendix
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Summary Appendix
Slide 31: Q1 FY23 Revenue by portfolio and geography
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Q1 FY23 Revenue by portfolio and geography Contents Highlights Highlights Assumptions Summary Worldwide U.S. Non-U.S. Developed Emerging Markets Revenue ($M)1 As reported Y/Y% Organic Y/Y% Revenue ($M)1 As reported Y/Y% Organic Y
Slide 32: Q1 FY23 GAAP to non-GAAP financial information
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Contents Highlights Highlights Assumptions Q1 FY23 GAAP to non-GAAP financial information Summary Debt (Gain) / Loss on Q1 FY23 Acquisition- Medical Device RCS Impairment Redemption Certain Tax Q1 FY23 Q1 FY22 Y/Y Growth / Amorti
Slide 33: Medtronic business structure
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Medtronic business structure Contents Highlights Highlights Assumptions Summary Cardiovascular Medical Surgical Neuroscience Diabetes Learn more Learn more Learn more Learn more Cardiac Rhythm & Heart Failure Surgical Innovations
Slide 34: Abbreviations & acronyms
Q1 FY23 Table of Portfolio Financial Guidance & Executive ESG Appendix Abbreviations & acronyms Contents Highlights Highlights Assumptions Summary Growth Business specific Business specific Other Other DD Double Digit AAA Abdominal Aortic Aneurysm LVAD Left Ventricular Assist Device AI Artificial In
Slide 35: 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