Medtronic plc. · NYSE:MDT
Medtronic — Q4 FY2021 Earnings Presentation
22 slides from Medtronic's earnings presentation, May 27, 2021
Slide 1: Medtronic plc Q4 FY21 Earnings Presentation
MEDTRONIC PLC Q4 FY21 EARNINGS PRESENTATION MAY 27, 2021 • Q4 FY21 CONSOLIDATED RESULTS & PORTFOLIO REVENUE HIGHLIGHTS • FY21 HIGHLIGHTS • FREE CASH FLOW • FY22 GUIDANCE & OTHER ASSUMPTIONS • PREVIOUSLY COMMUNICATED 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 competitive factors, difficulties and delays inherent in the developme
Slide 3: Q4 FY21 Consolidated Results & Portfolio Revenue Highlights
Q4 FY21 CONSOLIDATED RESULTS & PORTFOLIO REVENUE HIGHLIGHTS
Slide 4: Q4 FY21 Highlights: Recovery Strengthens Through the Quarter
MDT Q4 FY21 HIGHLIGHTS RECOVERY STRENGTHENS THROUGH THE QUARTER; STRONG MOMENTUM EXITING THE YEAR Revenue: REVENUE: Grew 32% Y/Y as we anniversary the beginning of the pandemic; revenue DIAB 8% EM accelerated through the quarter reflecting continued procedure recovery and share gains in CV 16% 36%
Slide 5: FY21: Over 230 Product Approvals in Key Geographies
MDT FY21: OVER 230 PRODUCT APPROVALS IN KEY GEOGRAPHIES1 MAY 2020 APRIL 2021 Resolute Onyx™ Evolut™ InterStim™ Abre™ DiamondTemp™ 1-month DAPT Bicuspid & Low Micro (U.S.) Venous Stent Ablation System Indication (EU) Risk Indications (U.S.) (U.S.) (EU) Vital Sync™ MiniMed™ Percept remote control 780G
Slide 6: Q4 FY21 Organic Revenue Growth by Region
MDT Q4 FY21 ORGANIC REVENUE GROWTH BY REGION* U.S. 47% NON-U.S. DEVELOPED 11% Western Australia & United States Japan Canada South Korea Europe New Zealand 47% HIGH-SINGLE LOW-20s MID-TEENS HIGH-TEENS HIGH-TEENS DIGITS EMERGING MARKETS 41% Eastern Europe & China Middle East & Africa Latin America So
Slide 7: Q4 FY21 GAAP to Non-GAAP Select Financial Information
MDT Q4 FY21 GAAP TO NON-GAAP SELECT FINANCIAL INFORMATION Non-GAAP Adjustments Gain/Loss on Medical Q4 FY21 Acquisition- Impairment IPR&D Certain Tax Q4 FY21 Q4 FY20 Y/Y Growth Amortization Restructuring Minority Device GAAP Related Investment Regulations Charges Charges Adjustments Non-GAAP Non-GAA
Slide 8: Cardiovascular Q4 FY21 Results
CARDIOVASCULAR SHARE GAINS CONTINUE IN CRM; Q4 FY21 RESULTS PROCEDURE RECOVERY DRIVES STRONG GROWTH Cardiac Rhythm & Heart Failure: 59% growth; WW share gains supported by Micra™ AV Transcatheter Strong Growth in CRM, Cardiac new products and continued adoption of remote capabilities Pacing System
Slide 9: Medical Surgical Q4 FY21 Results
MEDICAL SURGICAL GROWTH DRIVEN BY ELECTIVE PROCEDURE RECOVERY Q4 FY21 RESULTS PARTIALLY OFFSET BY VENTILATOR STEP DOWN Surgical Innovations (SI): 27% growth as COVID-19 recovery seen across Sonicision™ Strong growth in GI, Advanced procedure types, driven by U.S. and Emerging Markets Curved Jaw St
Slide 10: Neuroscience Q4 FY21 Results
NEUROSCIENCE SHARE GAINS PLUS MARKET RECOVERY LEAD Q4 FY21 RESULTS TO STRONG GROWTH Cranial & Spinal Technologies: 47% growth; strong capital unit sales Mazor X Stealth New Products from R&D Investments Over • Spine: High-40s growth driven by Core Spine strength in U.S. Edition™ Past Several Years
Slide 11: Diabetes Q4 FY21 Results
DIABETES STRONG GROWTH IN INSULIN PUMPS OUTSTANDING FEEDBACK FROM SUCCESSFUL 770G AND 780G LAUNCHES Q4 FY21 RESULTS Achieved Growth In All Regions; Turnaround Strategy On-Track Sequential Market Share Gains in MiniMed™ 780G System • International: 11% growth; accounts for approximately half of tot
Slide 12: FY21 Highlights
FY21 HIGHLIGHTS Medtronic Further, Together
Slide 13: FY21 Highlights: Strong Year of Execution Despite Pandemic
MDT FY21 HIGHLIGHTS STRONG YEAR OF EXECUTION DESPITE PANDEMIC Revenue: REVENUE: Grew approximately 2% organic; gained share in an increasing number of DIAB businesses despite pandemic weighing on results 8% EM CV 16% NS 36% U.S. EPS: Non-GAAP EPS $4.44; grew approx. 1% CC; continued to invest th
Slide 14: FY21 GAAP to Non-GAAP Select Financial Information
MDT FY21 GAAP TO NON-GAAP SELECT FINANCIAL INFORMATION Non-GAAP Adjustments Debt tender Gain/Loss on Medical FY21 premium and Acquisition- Impairment IPR&D Certain Tax FY21 FY FY20 Y/Y Growth Amortization Restructuring Litigation Minority Device GAAP other Related Investment Charges Regulations Char
Slide 15: Free Cash Flow
FREE CASH FLOW Medtronic Further, Together
Slide 16: Components of Free Cash Flow
MDT COMPONENTS OF FREE CASH FLOW $ Billions FY16 FY17 FY18 FY19 FY20 FY21 Operating Cash Flow $5.2 $6.9 $4.7 $7.0 $7.2 $6.2 CAPEX ($1.0) ($1.3) ($1.1) ($1.1) ($1.2) ($1.3) Free Cash Flow $4.2 $5.6 $3.6 $5.9 $6.0 $4.9 Included in Operating Cash Flow: Certain Litigation Payments, net1,2 $0.2 $0.3 $0.3
Slide 17: FY22 Guidance & Other Assumptions
FY22 GUIDANCE & OTHER ASSUMPTIONS
Slide 18: FY22 Guidance & Other Assumptions
MDT FY22 GUIDANCE & OTHER ASSUMPTIONS Organic Growth Implied Revenue FY21 Base FX1 Guidance Range REVENUE $30,117M 9% +/- $400 - $500M $33.2 - $33.3B Implied Constant FY21 Base FX1 EPS Guidance Currency Growth EPS $4.44 23 - 27% $0.10 - $0.15 $5.60 - $5.75 1 While FX rates are fluid, assumptions abo
Slide 19: Previously Communicated Changes to Revenue Reporting Structure
PREVIOUSLY COMMUNICATED CHANGES TO REVENUE REPORTING STRUCTURE
Slide 20: Changes to Revenue Reporting Structure
MDT CHANGES TO REVENUE REPORTING STRUCTURE 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 Q4 FY21 CARDIAC & VASCULAR GROUP (CVG) CHANGES: CARDIOVASCU
Slide 21: Cardiovascular Portfolio – Restated Historical Revenue
MDT CARDIOVASCULAR PORTFOLIO – RESTATED HISTORICAL REVENUE Recast to reflect new Cardiovascular Portfolio reporting structure All figures in $millions1 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Cardiac Rhythm & Heart Failure (CRHF) 1,382 1,426 1,393 940 5,141 1,247 1,
Slide 22: Acronyms / Abbreviations
APPENDIX ACRONYMS / ABBREVIATIONS Growth Other Business Specific Business Specific HSD High-Single Digit FY Fiscal Year AAA Abdominal Aortic Aneurysm ECMO Extracorporeal Membrane Oxygenation LDD Low-Double Digit Generally Accepted Accounting GAAP APV Aortic, Peripheral & Venous ENT Ear, Nose, & Thro