Medtronic plc. · NYSE:MDT
Medtronic — Q3 FY21 Earnings Presentation
17 slides from Medtronic's earnings presentation, Feb 23, 2021
Slide 1: Medtronic plc Q3 FY21 Earnings Presentation
MEDTRONIC PLC Q3 FY21 EARNINGS PRESENTATION FEBRUARY 23, 2021 • Q3 FY21 CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS • FREE CASH FLOW • FUTURE CHANGES TO REVENUE REPORTING STRUCTURE
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 the impact COVID-19 has had and is expected to continue to have on our
Slide 3: Q3 FY21 Consolidated Results & Group Revenue Highlights
Q3 FY21 CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS
Slide 4: Q3 FY21 Highlights: Gaining Momentum with Sequential Growth
MDT Q3 FY21 HIGHLIGHTS GAINING MOMENTUM WITH SEQUENTIAL GROWTH; NEW PRODUCTS DRIVING SHARE GAINS Revenue: REVENUE: Declined -1.0% due to late December and January COVID-19 resurgence but DIAB 8% EM grew 1.7% sequentially 3 (2.3% ex-Vents) reflecting new product launches and share gains 17% RTG CVG
Slide 5: Key Product Approvals Since Jan 2020
MDT KEY PRODUCT APPROVALS SINCE JAN 2020: OVER 220 PRODUCT APPROVALS IN KEY GEOGRAPHIES1 JANUARY 2020 JANUARY 2021 Intellis™ DTM Cobalt™/Crome™ Evolut™ InterStim™ Abre™ DiamondTemp™ (Stimgenics) (U.S.) HP Platform (U.S.) Bicuspid & Low Micro (U.S.) Venous Stent Ablation System Risk Indications (U.S.
Slide 6: Q3 FY21 Organic Revenue Growth by Region
MDT Q3 FY21 ORGANIC REVENUE GROWTH BY REGION* U.S. -2.0% NON-U.S. DEVELOPED -0.2% Western Australia & United States Japan Canada South Korea Europe New Zealand 2.0% LOW-SINGLE FLAT MID-SINGLE MID-SINGLE LOW-DOUBLE DIGITS DIGITS DIGITS DIGITS EMERGING MARKETS 0.8% Eastern Europe & China Middle East &
Slide 7: Q3 FY21 GAAP to Non-GAAP Select Financial Information
MDT Q3 FY21 GAAP TO NON-GAAP SELECT FINANCIAL INFORMATION Non-GAAP Adjustments Gain/Loss on Medical Q3 FY21 Debt Acquisition- Certain Tax Q3 FY21 Q3 FY20 Y/Y Growth Amortization Restructuring Litigation Minority Device GAAP Premium Related Investment Regulations Adjustments Non-GAAP Non-GAAP / Chang
Slide 8: MITG: Strong Ventilator & Airway Demand, Share Gains Across Portfolio
MITG STRONG VENTILATOR & AIRWAY DEMAND SHARE GAINS ACROSS PORTFOLIO Q3 FY21 RESULTS Puritan RGR Growth Offsetting COVID-19 Respiratory, Gastrointestinal, & Renal (RGR): 25.4% growth on high demand Bennett™ for Respiratory and Patient Monitoring products 980 Impact on SI Procedure Volumes • Respira
Slide 9: RTG: New Product Momentum Driving Share Gains
RTG NEW PRODUCT MOMENTUM DRIVING SHARE GAINS Q3 FY21 RESULTS Cranial & Spinal Technologies: -4.5% decline; strong capital unit sales Titan™ Spine Growth in NeuroMod & • Spine: MSD decline due to COVID-19 hospital restrictions; strength in Titan™ products & Infuse™ Specialty Therapies • Enabling Te
Slide 10: CVG: Sequential Share Gains in CRM & TAVR
CVG SEQUENTIAL SHARE GAINS IN CRM & TAVR STRONG MICRA GROWTH CONTINUES Q3 FY21 RESULTS Micra™ AV Cardiac Rhythm & Heart Failure: -3.7% decline; implant share gains Transcatheter Pacing System supported by new products and continued adoption of remote capabilities Growth in Micra™, CRT-D and TYRX™
Slide 11: Diabetes Returned to Growth
DIABETES RETURNED TO GROWTH OUTSTANDING FEEDBACK FROM SUCCESSFUL 770G AND 780G LAUNCHES Q3 FY21 RESULTS Continued WW CGM Growth; International Revenue: Accounts for approximately half of total sales, saw Sequential Market Share Gains in +3.4% gain InPen™ • Driven by 780G launch across 26 countries
Slide 12: Free Cash Flow
FREE CASH FLOW Medtronic Further, Together
Slide 13: Components of Free Cash Flow
MDT COMPONENTS OF FREE CASH FLOW FY21 FY16 FY17 FY18 FY19 FY20 $ Billions YTD Operating Cash Flow $5.2 $6.9 $4.7 $7.0 $7.2 $4.5 CAPEX ($1.0) ($1.3) ($1.1) ($1.1) ($1.2) ($1.0) Free Cash Flow $4.2 $5.6 $3.6 $5.9 $6.0 $3.5 Included in Operating Cash Flow: Certain Litigation Payments, net1,2 $0.2 $0.3
Slide 14: Future Changes to Revenue Reporting Structure
FUTURE CHANGES TO REVENUE REPORTING STRUCTURE
Slide 15: Changes to Revenue Reporting Structure – Starts Next Quarter
MDT CHANGES TO REVENUE REPORTING STRUCTURE – STARTS NEXT QUARTER Key SEGMENT Revenue will be reported for the 4 segments and at the division levels. Qualitative DIVISION performance color will be provided at the Operating Unit operating unit level. PRE-Q4 FY21 STARTING IN Q4 FY21 CARDIAC & VASCULA
Slide 16: Cardiovascular Portfolio – Restated Historical Revenue
MDT CARDIOVASCULAR PORTFOLIO – RESTATED HISTORICAL REVENUE Recast to reflect new Cardiovascular Portfolio reporting structure All figures in $millions1 Q4 FY20 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Cardiac Rhythm & Heart Failure (CRHF) 940 5,141 1,247 1,426 1,371 World Wide Structural Heart & Aortic (SHA) 57
Slide 17: Acronyms / Abbreviations
APPENDIX ACRONYMS / ABBREVIATIONS Growth Other Business Specific Business Specific DD Double Digit Ex Excluding AAA Abdominal Aortic Aneurysm ENT Ear, Nose, & Throat HSD High-Single Digit FDA Food and Drug Administration APV Aortic, Peripheral & Venous HP High Power LDD Low-Double Digit FY Fiscal Ye