Medtronic Plc. · NYSE:MDT
Medtronic — Q4 FY22 Earnings Presentation
44 slides from Medtronic's earnings presentation, May 26, 2022
Slide 1: Medtronic plc Q4 FY22 Earnings presentation
Medtronic plc Q4 FY22 Earnings presentation May 26, 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
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Contents Highlights Highlights Assumptions ESG Summary / Recap Table of contents Executive Portfolio Financial Guidance & ESG Appendix Summary Highlights Highlights Assumptions
Slide 4: Q4 FY22 Executive Summary
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Contents Highlights Highlights Assumptions ESG Summary / Recap Q4 FY22 Executive Summary
Slide 5: Q4 FY22 Key messages and guidance
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Q4 FY22 Key messages and guidance Contents Highlights Summary / Recap Remain confident in our ability to address recent challenges and deliver on strategic priorities Results short of consen
Slide 6: Q4 FY22 Financial summary
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Q4 FY22 Financial summary Contents Highlights Summary / Recap Strength in Cardiovascular and Neuroscience offset by declines in Medical Surgical and Diabetes Revenue Grew 1% Y/Y; supply chai
Slide 7: Q4 FY22 Financial summary: revenue by segment and geography
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Q4 FY22 Financial summary Contents Highlights Summary / Recap Revenue1 by segment Revenue1 by geography Non-U.S. Developed $2,609M -2.4% Y/Y Rep +4.0% Y/Y Org2 Cardiovascular $2,961M Diabete
Slide 8: Q4 FY22 Portfolio summary
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Q4 FY22 Portfolio summary Contents Highlights Summary / Recap Cardiovascular Neuroscience Coronary & Peripheral Vascular Neuromodulation $631M $451M +1.1% Y/Y Rep +0.4% Y/Y Rep +3.7% Y/Y Org
Slide 9: Q4 FY22 Regional organic revenue growth
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Q4 FY22 Regional organic revenue growth Contents Highlights Summary / Recap United States Non-U.S. Developed 4% Western Europe Japan Australia & New Canada South Korea Zealand 2% High-
Slide 10: Key product approvals
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Key product approvals Contents Highlights Summary / Recap Last 12 months: 200+ product approvals in key geographies1 Hugo™ Micra™ Interstim™ X Vanta™ PC Robotic Assisted AV TPS System Spinal
Slide 11: Q4 FY22 Portfolio Highlights
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Contents Highlights Highlights Assumptions ESG Summary / Recap Q4 FY22 Portfolio Highlights
Slide 12: Cardiovascular
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Cardiovascular Contents Highlights Summary / Recap Share gains in CRM partially offset by quality and supply chain challenges in Aortic Cardiac Rhythm & Heart Failure (CRHF) Micra™ AV and VR
Slide 13: Cardiovascular (continued)
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Cardiovascular (continued) Contents Highlights Summary / Recap Share gains in CRM partially offset by quality and supply chain challenges in Aortic Coronary and Peripheral Vascular (CPV) Cor
Slide 14: Medical Surgical
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Medical Surgical Contents Highlights Summary / Recap Flat growth ex-vents due to supply chain challenges in Surgical Innovations Surgical Innovations (SI) Surgical Innovations Flat • Results
Slide 15: Medical Surgical (continued)
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Medical Surgical (continued) Contents Highlights Summary / Recap Flat growth ex-vents due to supply chain challenges in Surgical Innovations Respiratory, Gastrointestinal, & Renal (RGR) Nell
Slide 16: Neuroscience
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Neuroscience Contents Highlights Summary / Recap Continued product adoption driving share gains offset by supply chain headwinds MAZOR X STEALTH EDITION™ Cranial & Spinal Technologies (CST)
Slide 17: Neuroscience (continued)
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Neuroscience (continued) Contents Highlights Summary / Recap Continued product adoption driving share gains offset by supply chain headwinds Neuromodulation DTM™ SCS on the Intellis™ platfor
Slide 18: Neuroscience (continued)
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Neuroscience (continued) Contents Highlights Summary / Recap Continued product adoption driving share gains offset by supply chain headwinds Specialty Therapies InterStim X™ System Recharge-
Slide 19: Diabetes
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Diabetes Contents Highlights Summary / Recap High-teens sequential international growth on strength of MiniMed™ 780G and Guardian™ 4 Sensor Pump Delivery LDD • OUS was up high-20’s sequent
Slide 20: FY22 Recap/Highlights
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Contents Highlights Highlights Assumptions ESG Summary / Recap FY22 Recap/Highlights
Slide 21: FY22 Key highlights
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG FY22 Key highlights Contents Highlights Summary / Recap Delivered mid-single digit revenue growth, with notable successes in a difficult operating environment Medtronic transformation contin
Slide 22: FY22 Financial summary
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG FY22 Financial summary Contents Highlights Summary / Recap Solid Emerging Market growth partly offset by mid-single digit U.S. results Revenue Grew 5% Y/Y; International market growth offset
Slide 23: FY22 Financial summary: revenue by segment and geography
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG FY22 Financial summary Contents Highlights Summary / Recap Revenue1 by segment Revenue1 by geography Non-U.S. Developed $10,126M +3.2% Y/Y Rep +4.3% Y/Y Org2 Cardiovascular $11,423M Diabetes
Slide 24: FY22 Portfolio summary
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG FY22 Portfolio summary Contents Highlights Summary / Recap Cardiovascular Neuroscience Coronary & Peripheral Vascular Neuromodulation $2,460M $1,735M +4.5% Y/Y Rep +8.4% Y/Y Rep +4.5% Y/Y Or
Slide 25: FY22 Regional organic revenue growth
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG FY22 Regional organic revenue growth Contents Highlights Summary / Recap United States Non-U.S. Developed 4% Western Europe Japan Australia & New Canada South Korea Zealand 4% Mid-sing
Slide 26: Q4 FY22 and full year Financial Highlights
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Contents Highlights Highlights Assumptions ESG Summary / Recap Q4 FY22 and full year Financial Highlights
Slide 27: Q4 FY22 Income statement
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Q4 FY22 Income statement Contents Highlights Summary / Recap GAAP1 Non-GAAP1 ($ in millions) Q4 FY21 Q4 FY22 Y/Y ($ in millions) Q4 FY21 Q4 FY22 Y/Y Revenue $8,188 $8,089 -1.2% Revenue $8,18
Slide 28: FY22 Income statement
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG FY22 Income statement Contents Highlights Summary / Recap GAAP1 Non-GAAP1 ($ in millions) FY21 FY22 Y/Y ($ in millions) FY21 FY22 Y/Y Revenue $30,117 $31,686 5.2% Revenue $30,117 $31,686 5.2
Slide 29: Balance sheet
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Balance sheet Contents Highlights Summary / Recap Continue to maintain a strong balance sheet ($ in millions) Q4 FY21 Q3 FY22 Q4 FY22 Y/Y Q/Q Total Assets $93,083 $91,804 $90,981 ($2,102) ($
Slide 30: Free cash flow
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Free cash flow Contents Highlights Summary / Recap Continue to target annual FCF conversion of 80% or higher Included in free 97% cash flow: FY18 FY19 FY20 FY21 FY22 ($ in billions) 83% 81%
Slide 31: Capital allocation
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Capital allocation Contents Highlights Summary / Recap Balancing investment with return to shareholders Investments Return to shareholders Organic R&D Dividend Tuck-in M&A investments growth
Slide 32: FY23 Guidance & Assumptions
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Contents Highlights Highlights Assumptions ESG Summary / Recap FY23 Guidance & Assumptions
Slide 33: FY23 Guidance and assumptions
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG FY23 Guidance and assumptions Contents Highlights Summary / Recap FY22 Organic revenue Implied revenue FX1 Revenue base growth guidance range $31,686M +4 to +5% -$1.0B to -$1.1B ~$31.9B - $3
Slide 34: Environmental, Social & Governance
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Contents Highlights Highlights Assumptions ESG Summary / Recap Environmental, Social & Governance
Slide 35: Environmental, social & governance
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Environmental, social & governance Contents Highlights Summary / Recap Leading in engagement, citizenship and innovation Inclusive & engaging Innovation & industry Citizenship awards work en
Slide 36: ESG long-range objectives & targets
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Environmental, social & governance Contents Highlights Summary / Recap Long-range objectives & targets Patient Safety & Inclusion, Climate Product Product Quality Diversity & Equity Stewards
Slide 37: Appendix
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Contents Highlights Highlights Assumptions ESG Summary / Recap Appendix
Slide 38: Q4 FY22 Revenue by portfolio and geography
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Q4 FY22 Revenue by portfolio and geography Contents Highlights Summary / Recap Worldwide U.S. Non-U.S. Developed Emerging Markets Revenue ($M)1 As reported Y/Y% Organic Y/Y% Revenue ($M)1 As
Slide 39: Q4 FY22 GAAP to non-GAAP financial information
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Contents Highlights Highlights Assumptions ESG Q4 FY22 GAAP to non-GAAP financial information Summary / Recap (Gain)/Loss on Q4 FY22 Acquisition- Medical Device Certain Tax Q4 FY22 Q4 FY21 Y/Y Growth Amortization Rest
Slide 40: FY22 Revenue by portfolio and geography
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG FY22 Revenue by portfolio and geography Contents Highlights Summary / Recap Worldwide U.S. Non-U.S. Developed Emerging Markets Revenue ($M)1 As reported Y/Y% Organic Y/Y% Revenue ($M)1 As re
Slide 41: FY22 GAAP to non-GAAP financial information
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG FY22 GAAP to non-GAAP financial information Contents Highlights Summary / Recap (Gain)/Loss on Medical FY22 Acquisition- Certain Tax Prior to Recasting Impact of Recast FY22 FY21 Y/Y Growth
Slide 42: Medtronic business structure
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights Appendix Highlights Assumptions ESG Medtronic business structure Contents Highlights Summary / Recap Cardiovascular Medical Surgical Neuroscience Diabetes Learn more Learn more Learn more Learn more Cardiac Rhythm & Heart Fail
Slide 43: Abbreviations & acronyms
Q4 FY22 FY22 Table of Portfolio Financial Guidance & Executive Highlights ESG Appendix Abbreviations & acronyms Contents Table of Highlights Executive Portfolio Highlights Financial Assumptions Guidance & Summary / Recap Contents Summary Highlights Highlights Assumptions Growth Business specific Bus
Slide 44: Investor Relations contact information
Investor Relations contact information Ryan Weispfenning Brad Welnick Greg Hertz Vice President & Head Sr. Director, Investor Sr. Director, Investor of Investor Relations Relations Relations [email protected]