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Q1 FY18
EARNINGS PRESENTATION
AUGUST 22, 2017
Financial Data
Certain information in this presentation includes calculations or figures that have been prepared internally and have
not been reviewed or audited by our independent registered public accounting firm. Use of different methods for
preparing, calculating or presenting information may lead to differences and such differences may be material. This
presentation contains financial measures and guidance which are considered non-GAAP financial measures under
applicable SEC rules and regulations. We believe these non-GAAP measures provide a useful way to evaluate our
underlying performance. Medtronic calculates forward-looking non-GAAP financial measures based on internal
forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-
looking revenue growth and EPS projections exclude the impact of foreign currency fluctuations. Forward-looking
non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as non-GAAP
adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-
looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of
recognition of these potential charges or gains is inherently uncertain and difficult to predict, and is unavailable
without unreasonable efforts. In addition, we believe such reconciliations would imply a degree of precision and
certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of
financial performance. Detail concerning how all non-GAAP measures are calculated, including all GAAP to non-GAAP
reconciliations, are provided on our website and can be accessed using this link.
Revenue:
DIAB
6%
EM Delivered MSD revenue growth and DD EPS growth
CVG 14% Managed through headwinds of temporary sensor supply constraint in
RTG
36%
24% Non- U.S. Diabetes Group and IT system disruption
U.S. 55%
Dev Strong CVG performance driven by continued growth in TAVR, AF
MITG
34%
31% Solutions, insertable diagnostics, and DCB
Non-US Developed growth1 driven by Japan and Western Europe
Revenue As Rep CC1
Double-digit Emerging Markets growth1 driven by strength in China, Latin
$M Y/Y % Y/Y % America, Middle East & Africa, and Southeast Asia
CVG 2,646 5 6 Foreign currency had a negative 50 bps impact on revenue
MITG 2,486 3 3 Acquisitions, where company continues to accelerate growth, contributed
RTG 1,809 2 2 140 bps1 to Q1 revenue growth
Diabetes 449 (1) (1) EPS leverage (~700 bps1) driven by solid operating margin improvement
Total $7,390 3% 4% (~200 bps1), previously communicated tax benefit (~300 bps1), and share
repurchase (~200 bps1)
U.S. 4,042 1 1
Non-U.S. Dev 2,313 4 5 Solid organic operating margin improvement
EM 1,035 11 12 Operating Margin: ~50 bps improvement Y/Y1; ~70 bps improvement Y/Y1
Total $7,390 3% 4% on organic basis2; Operating leverage ~200 bps1
Driven by continued delivery against Covidien synergies, partially offset by
purposeful SG&A investment in new product launches; on track to complete
Earnings Per Share: $850 million of Covidien synergies this fiscal year
Diluted As Rep CC1
Capital allocation: Strategically deploying capital against priorities
EPS Y/Y Y/Y%
Increased cash dividend for 40th consecutive quarter
GAAP $0.74 12% NC 1
Non-GAAP $1.12 9% 11%
Q1: 111% Payout Ratio3; $625M in dividends and $1,090M in net share
repurchases
Q1 Q1 Y/Y Growth /
FY18 FY17 Y/Y Change
11% Y/Y1
($0.02)
1.20 $0.11 $1.14 $1.12 ($0.38)
$0.37 $1.03
1.00
0.80 $0.74
$0.66
0.60
0.40
0.20
0.00
Q1 FY17, Q1 FY17, Q1 FY17, Performance Q1 FY18 FX Q1 FY18, Q1 FY18, Q1 FY18,
GAAP Non-GAAP Non-GAAP CC Non-GAAP Non-GAAP GAAP
Adjustments Adjustments
FY17 FY18
35.0%
30.0%
10.1% 26.4% 0.5% 26.9% (0.4%) 26.5% (7.7%)
25.0%
20.0% 18.8%
16.3%
15.0%
10.0%
5.0%
0.0%
Q1 FY17, Q1 FY17, Q1 FY17, Performance Q1 FY18 FX Q1 FY18, Q1 FY18, Q1 FY18,
GAAP Non-GAAP Non-GAAP CC Non-GAAP Non-GAAP GAAP
Adjustments Adjustments
FY17 FY18
FX Q1 FY18 Q1 FY18
Q1 Q1
Impact Constant CC Growth /
FY18 FY17
$M / Change Currency1 Change2
1 Non-GAAP
2 Figures represent comparison to Q1 FY17 on a constant currency basis (Non-GAAP).
Q1 FY18 Earnings Results | August 22, 2017 | 8
CVG
Q1 FY18 HIGHLIGHTS
KEY PERFORMANCE DRIVERS1
Cardiac Rhythm & Heart Failure (CRHF)
Micra TPS
Arrhythmia Mgmt: +LSD Heart Failure: +LDD
WW Tachy: LSD decline Driven by HeartWare acquisition
OUS strength DT approval on track for FY18
Continued strong demand of TYRX CRT-D: LDD decline; continued share
WW Brady: LSD decline gains in Japan from Compia MRI and
Strong, balanced growth across Strength across several OUS
geographies offset by US decline
Amplia MRI
CRT-P: Low 30s growth with strong
all three divisions Continued strong adoption of Micra demand for recently launched
Diagnostics: HSD growth portfolio of quadripolar CRT-Ps
AF Solutions: High-teens; strong Arctic Front
growth in EU, Japan, and Greater China Services & Solutions: +MSD Advance
APV EM
16% 16%
Coronary & Structural Heart (CSH)
U.S.
CRHF Non- 50% Heart Valve Therapies: Coronary: -LSD CoreValve
CSH
53% U.S. Evolut PRO
31% Dev +Mid-Twenties DES: LSD decline; gained DES share in
34% High-30s WW TAVR growth US and Japan
Continued Evolut PRO rollout in US; Resolute Onyx approval in Japan;
positive clinical feedback continued strong US and Japan launch
Revenue As Rep CC1 FDA approval of Intermediate Risk RDN clinical data to be presented at ESC Resolute
$M Y/Y % Y/Y % TAVR indication received in July Onyx
CRHF 1,390 4 5 Continued global adoption of Evolut R Extracorp. Therapies: -LSD
CSH 817 7 8 34mm
Cannulae and Revasc growth offset by
APV 439 4 5 OUS market share gains
Surgical Ablation decline
Total $2,646 5% 6%
Aortic & Peripheral Vascular (APV)
U.S. 1,333 3 3 Heli-FX
Aortic: +LSD Peripheral & endoVenous: EndoAnchor
Non-U.S. Dev 887 7 8 Softness in US offset by strength in
EM 426 9 9 +MSD
China and Japan
DCB: SFA US, EU & WW share leader
Total $2,646 5% 6% OUS: MSD growth driven by
DCB low-teens WW; low-20s OUS
Endurant IIs + Heli-FX EndoAnchor IN.PACT
Unique Belgium/France reimbursement Admiral
AAA: LSD growth with continued
FY18 Growth Outlook: 5.5 7% US launch of Chocolate PTA
Endurant ChEVAR adoption in EU
Atherectomy: LDD growth on strong
TAA: Above-market WW growth
adoption of HawkOne 6F
1 Figures represent comparison to Q1 FY17 on a constant currency basis (Non-GAAP).
Brain Therapies
EM StealthStationTM
Pain
11% Neurovascular: +High-Teens Neurosurgery: +HSD S8
15%
Spine Non-US
Strong growth driven by Axium Growth driven by StealthStation S8
Specialty
36% Dev detachable coils, Solitaire stent launches in the US and Europe
22% U.S.
20% retriever, and Navien intracranial
67%
support catheter Brain Modulation: -MSD
Brain
Strong growth in APAC and China
29%
Competitive pressure in US & EU
The revised financial metrics represent estimates based upon available information and certain assumptions which
management believes are reasonable under the circumstances. Actual results may have differed materially from the
assumptions used to prepare the revised financial metrics. The revised financial metrics are not necessarily indicative
of the financial position or results of operations that would have been realized had the divestiture occurred as of the
dates or for the periods indicated, nor is it meant to be indicative of any financial position or results of operations that
Medtronic plc may have experienced had the divestiture occurred in an earlier period.
Surgical Advanced Surgical Advanced Stapling Surgical Advanced Surgical Advanced Stapling
Solutions Advanced Energy Solutions Advanced Energy
Hernia Hernia
Gynecology Gynecology
Interventional Lung
General Surgical Sutures
Instruments General Surgical Sutures
Instruments
Early Technologies Interventional Lung
Advanced Ablation
GI Solutions
Patient Respiratory & Patient Monitoring Patient Respiratory & Patient Monitoring
Monitoring & Monitoring Solutions Respiratory Monitoring & Monitoring Solutions Respiratory
Recovery Solutions Recovery Solutions
Advanced Ablation
Patient Care/DVT/NI Patient Care GI Solutions
(Divested Business) Compression
Nutritional Renal Care Solutions Renal Access
Insufficiency Dialyzers
1 Q1 FY17 revenues are not adjusted. Comparable Q1 FY18 will be provided at a later date for use in making FY19 comparisons.
Q2 Q3 Q4
FY174
FY17 FY17 FY17
1 Non-GAAP measure. Refer to Basis of Presentation of Revised Financial Metrics disclaimer on slide 14 to address the calculation of the
revised baseline
2 Assumes $6M reduction per quarter to R&D expense and no change to other expense related to divested businesses
3 Assumes no change to interest expense or diluted share count related to divested businesses
4 Q1 FY17 values are not adjusted. Comparable Q1 FY18 will be provided at a later date for use in making FY19 comparisons.
Guidance
FY18
Revenue Growth1 4 - 5%
CVG Growth1 5.5 - 7%
MITG Growth1 3.5 4.5%
RTG Growth1 ~3%
Diabetes Growth1 1 4%
COV Synergies ~$250 - $275M
EPS Growth1 9 - 10%
FX Assumptions
FY18 Q2FY18
Other than noted, revenue and EPS growth guidance do not include any charges or gains that
would be recorded as non-GAAP adjustments to earnings during the fiscal year
1 Versus prior year on a comparable, constant currency basis (non-GAAP) Q1 FY18 Earnings Results | August 22, 2017 | 19
APPENDIX Business Specific 1
DD Double Digits APV Aortic & Peripheral Vascular MIS Minimally Invasive Surgery
HSD High-Single Digit BMP Bone Morphogenetic Protein MITG Minimally Invasive Therapies Group
COV Covidien H2 Second Half of Year DCB Drug Coated Balloon Revasc Revascularization
EM Emerging Markets Rep Reported DT Destination Therapy SFA Superficial Femoropopliteal Artery
EPS Earnings Per Share WW Worldwide ENT Ears, Nose, & Throat TAA Thoracic Aortic Aneurysm
GI Gastrointestinal