Medtronic : Fourth Quarter 2024 Presentation

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Medtronic plc

Q4 FY24

Earnings presentation

May 23, 2024

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 development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, general economic conditions, and other risks and uncertainties described in the company's periodic reports on file with the US Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this presentation, including to reflect future events or circumstances.

Non-GAAP financial measures

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. Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company's underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with US generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company's consolidated financial statements and publicly filed reports in their entirety. All GAAP to non-GAAP reconciliations are provided on our website.

Medtronic calculates forward-lookingnon-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions or divestitures. Forward-looking diluted 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-lookingnon-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, the company believes 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.

Financial comparisons

References to results increasing, decreasing, or remaining flat are in comparison to the same period in the prior fiscal year. References to organic revenue growth exclude the impact of significant acquisitions or divestitures, currency, and a one-time payment in the prior year relating to an intellectual property agreement. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis. References to sequential revenue changes are made on an "as reported" basis. Unless stated otherwise, all references to share gains or losses are as of the most recently completed calendar quarter, on a revenue basis, and in comparison to the same period in the prior year.

2 | Q4 FY24 Earnings Presentation | May 23, 2024

Table ofExecutive	Portfolio	FY24	Financial	Guidance &	Sustainability Appendix
ContentsSummary	Highlights	Recap	Highlights	Assumptions

Table of contents

Q4 FY24	Portfolio	FY24 Recap &	Financial	Guidance &	Sustainability	Appendix
Executive
Highlights	Highlights	Highlights	Assumptions
Summary

Table ofExecutive	Portfolio	FY24	Financial	Guidance &	Sustainability Appendix
ContentsSummary	Highlights	Recap	Highlights	Assumptions

Q4 FY24

Executive Summary

Q4 FY24 Highlights

Table ofExecutive	Portfolio	FY24	Financial	Guidance &	Sustainability Appendix
ContentsSummary	Highlights	Recap	Highlights	Assumptions

Delivered a strong finish to fiscal year; broad-based durable growth across the company; gaining momentum as company enters new product cycles across many high-growth markets

Solid overall execution as momentum continues; durable MSD revenue growth on MSD comps; delivering on commitments

• Notable strength in Cranial & Spinal Technologies, Diabetes, Cardiac Pacing, Surgical, and Structural Heart
• Strong growth around the globe with MSD non-US Developed growth and 13% EM growth, as we expand access to our innovative healthcare technologies

Entering new product cycles in some of MedTech's most attractive markets

- Several recent product approvals that are just starting, or yet to contribute, to growth, including Evolut FX+, PulseSelect pulsed field ablation system, Symplicity Spyral RDN system, Percept RC featuring BrainSense technology, Inceptiv closed-loop spinal cord stimulator, and MiniMed 780G System with Simplera Sync CGM

• Advancing innovative core tech in robotics, AI, and closed loop systems; 6 AI products already FDA approved

Making progress on restoring earnings power; translating into strong and improving cash flow and returns to shareholders

Comprehensive transformation taking hold; executing programs to leverage scale and drive efficiencies

• Adj. gross margin remained flat Y/Y, despite FX and continued elevated inflation; seeing early benefits of COGS efficiency efforts
• $5.2B in free cash flow YTD; $1.6B of net share repurchase in Q4

Issuing FY25 revenue growth and EPS guidance

Reflects durable, mid-single digit revenue growth and a significant step forward on earnings power

• Organic revenue growth: 4% to 5%
• Adjusted EPS: $5.40 - $5.50, implies growth of 4% to 6%

We delivered a strong finish to the fiscal year, with broad strength across our businesses and each of our four segments posting mid-single digit or higher organic revenue growth.

Our momentum is building into the new fiscal year. We're beginning new product cycles in some of MedTech's most attractive markets, which is further enhanced as we apply AI across our portfolio. We are very optimistic about what we can achieve in fiscal '25 and beyond."

GEOFF MARTHA,

CHAIRMAN & CEO

5 | Q4 FY24 Earnings Presentation | May 23, 2024

Q4 FY24 Financial summary

Revenue1 by segment

	Cardiovascular
	$3,130M
	(5.2%) Y/Y Rep
Diabetes	+4.0% Y/Y Org
$660M	Total MDT
+10.9% Y/Y Rep
+11.1% Y/Y Org	$8,589M
	+0.5% Y/Y Rep
	+5.4% Y/Y Org
	Neuroscience
	$2,545M
	+5.6% Y/Y Rep
	+6.5% Y/Y Org
Medical Surgical	Other
$2,198M
+3.5% Y/Y Rep	$57M
+4.5% Y/Y Org	(50.0%) Y/Y Rep

Table ofExecutive	Portfolio	FY24	Financial	Guidance &	Sustainability Appendix
ContentsSummary	Highlights	Recap	Highlights	Assumptions

Revenue1 by geography

Non-US Developed

$2,674M

+1.7% Y/Y Rep

+4.2% Y/Y Org

United States

$4,343M

(3.0%) Y/Y Rep

+3.5% Y/Y Org

Emerging Markets

$1,572M

+9.2% Y/Y Rep

+13.1% Y/Y Org

	GAAP	Non-GAAP	Cash flow from
	operations YTD
Diluted EPS	$0.49	$1.46	$6.8B
Y/Y %	(44.3%)	(7.0%)	Free cash flow2 YTD
CC Y/Y %	N/A	(2.5%)	$5.2B

6	| Q4 FY24 Earnings Presentation | May 23, 2024	1)	Data has been intentionally rounded to the nearest million and, therefore, may not sum.
		2)	Operating cash flows less property, plant, and equipment additions.

Key product approvals

Table ofExecutive	Portfolio	FY24	Financial	Guidance &	Sustainability Appendix
ContentsSummary	Highlights	Recap	Highlights	Assumptions

Recent rapid cadence of meaningful innovative approvals; ~130 product approvals in last 12 months in key geographies1

ClosureFast	SynchroMed III	Aurora EV-ICD	PulseSelect	Percept RC	Avalus Ultra	OsteoCool 2.0	Inceptiv Spinal
Intrathecal Drug	Neurostimulator	Surgical Aortic	Bone Tumor
Radiofrequency	Delivery System	System	Pulse Field	with BrainSense	Tissue Valve	Ablation System	Cord Stimulator
Ablation Catheter	(US)	(US)	Ablation System	(Europe & US)	(US)	(US)	(US)
(US)			(Europe & US)

				Nitron			MiniMed 780G	Evolut FX+
Inceptiv Spinal		Evolut FX	Symplicity Spyral			System with
	CryoConsole	Micra	AV2 &
Cord Stimulator	Simplera CGM	TAVR System	Renal Denervation	System	Simplera Sync	TAVR System
(Europe)	(Europe)	System	(Europe & US)	Micra	VR2	(Europe)	(US)
	(Europe)		(US)	(Europe)

Q1 FY24

Q4 FY24

7	| Q4 FY24 Earnings Presentation | May 23, 2024	Note: Relative positioning is not intended to signify relative timing
1) Includes US, EU, Japan and China. Does not include all indication or partner approvals, though select additional approvals are

displayed

Table of Executive	Portfolio	FY24	Financial	Guidance &	Sustainability Appendix
Contents Summary	Highlights	Recap	Highlights	Assumptions

Q4 FY24

Portfolio Highlights

Cardiovascular

MSD growth driven by strong performance in Pacing, Structural Heart, and Cardiac Surgery

21%

CPV | $660M

+4.6% Y/Y Rep

Cardiac Rhythm & Heart Failure (CRHF)	Micra
• Cardiac Pacing Therapies: HSD growth; low-20s WW Micra growth driven by Micra
AV2 and VR2 in US & EU; low-40s WW SelectSure 3830 lead growth, only lead
approved for conduction system pacing in US

AV2 and VR2

Transcatheter

Pacing System

+5.7% Y/Y Org $3,130M

-5.2% Y/Y Rep

+4.0% Y/Y Org

• Defibrillation Solutions: LSD growth; Aurora EV-ICD	LMR underway in US & EU
• CAS: Low-20s sequential WW & US growth driven by PulseSelect ; PFA more than
offsetting cryo declines; SPHERE Per-AF pivotal data presented at HRS 2024 and
published in Nature Medicine, showing Sphere-9	is as safe and effective and more
efficient than traditional focal RF treatment; Affera	mapping and focal ablation system
submitted for US approval
Structural Heart & Aortic (SHA)
• Structural Heart: HSD WW growth driven by Evolut	FX adoption; SMART Trial data

Aurora EV-ICD

System

Affera Sphere9

and PulseSelect

Pulse Field Ablation

(PFA) Catheters

28%

SHA | $883M

-20.1% Y/Y Rep

+5.8% Y/Y Org

51%

CRHF | $1,587M

+1.3% Y/Y Rep

+2.2% Y/Y Org

presented at ACC and published in NEJM showed Evolut TAVR superior valve

performance and non-inferior clinical outcomes at one-year; Evolut FX+ received US

FDA approval and launching in August 2024

• Aortic: LSD growth driven by TAA growth

• Cardiac Surgery: HSD growth driven by broad portfolio strength; Penditure LAA Clip US launch underway; Next-gen Avalus Ultra aortic tissue valve launched in US

Coronary and Peripheral Vascular (CPV)

•	Coronary & Renal Denervation: Y/Y DES share gains driven by Onyx Frontier adoption;
	mid-teens growth in guide catheters and low-double digit growth in balloons; Symplicity
	Spyral system for hypertension received NMPA approval in China
•	Peripheral Vascular Health: Mid-teens growth in DCBs driven by strength of IN.PACT 018
	DCB; Mid-teens growth in vascular embolization offset by MSD declines in atherectomy

Evolut FX+

TAVR System

Onyx Frontier

DES

Operating Unit Growth
Cardiac Rhythm Management		LSD
Cardiac Ablation Solutions		MSD
Structural Heart & Aortic		MSD
Cardiac Surgery		HSD
Coronary & Renal Denervation		MSD
Peripheral Vascular Health		MSD

9

| Q4 FY24 Earnings Presentation | May 23, 2024

Affera is not commercially available in the US

Neuroscience

6.5% growth benefitting from strength in Spine and Neurosurgery

Cranial & Spinal Technologies (CST)

AiBLE

31%
ST | $778M
+2.0% Y/Y Rep	$2,545M
+3.1% Y/Y Org

•	Neurosurgery: DD WW, US and WE growth; strong DD growth of AiBLE ecosystem
	including Mazor robotics, StealthStation navigation, O-arm imaging, and Midas Rex
	powered surgical instruments
•	Core Spine: MSD WW and HSD US growth driven by AiBLE ecosystem
•	Biologics: HSD growth driven by strong Infuse bone graft performance

Specialty Therapies (ST)

• Neurovascular: LSD growth ex-China, with continued DD growth in flow diversion on strong adoption of Shield Technology
• Ear, Nose & Throat: Growth driven by strong power capital and disposable sales and localized drug delivery sinus implants

Surgical Ecosystem

PROPEL

Sinus Implant

19%

NM | $475M

+5.8% Y/Y Rep

+6.0% Y/Y Org

+5.6% Y/Y Rep

+6.5% Y/Y Org

51%

CST | $1,291M

+7.8% Y/Y Rep

+8.7% Y/Y Org

• Pelvic Health: Growth driven by InterStim X

Operating Unit Growth

Neuromodulation (NM)

• Spinal Cord Stimulation: LSD WW and US growth driven by differentiated DTM on Intellis platform; HSD trialing and LSD new implant growth in US; Received US FDA approval for Inceptiv closed-loop spinal cord stimulator

• Brain Modulation: LDD WW growth driven by mid-teens new implant growth of our

Percept RC neurostimulator with BrainSense technology

Inceptiv	Percept RC DBS
Rechargeable	with BrainSense
Closed-Loop SCS	Technology

10 | Q4 FY24 Earnings Presentation | May 23, 2024

Cranial & Spinal Technologies	 HSD
Neurovascular	 LSD
ENT	 HSD
Pelvic Health	 MSD
Neuromodulation	 MSD