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Q3 FY17
EARNINGS PRESENTATION
FEBRUARY 21, 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, including free cash flow figures (defined as operating cash flows less property, plant and equipment
additions), revenue, margin and growth rates on a constant currency basis, and adjusted EPS, all of 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 exchange 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, such as amortization of intangible assets and acquisition-related, certain tax and litigation, and
restructuring charges or gains. 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.
Cash Flow Free Cash Capital allocation: Strategically deploying capital against priorities
from Ops $2.1B Flow4 $1.8B
Q3: 74% Payout Ratio4; $590M in dividends and $566M in net share repurchases
1 Figures represent comparison to Q3 FY16 on a constant currency basis (non-GAAP).
2 Non-GAAP measure
3 Operating cash flows less property, plant and equipment additions (non-GAAP) Q3 FY17 Earnings Results | February 21, 2017 | 4
4 Dividends plus net share repurchases divided by adjusted net income (non-GAAP)
MDT
Q3 FY17 GAAP SELECT FINANCIAL INFORMATION
Q3 Q3 Y/Y Growth /
FY17 FY16 Y/Y Change
10% Y/Y1
1.40
$0.11 $1.17 ($0.05)
1.20 $1.06 $1.12 ($0.53)
$0.29
1.00
0.80
$0.77
$0.59
0.60
0.40
0.20
0.00
Q3 FY16, Q3 FY16, Q3 FY16, Performance Q3 FY17 FX Q3 FY17, Q3 FY17, Q3 FY17,
GAAP Non-GAAP Non-GAAP CC Non-GAAP Non-GAAP GAAP
Adjustments Adjustments
FY16 FY17
35.0%
30.0% 27.8% 1.3% 29.1% (0.9%) 28.2% (12.5%)
8.3%
25.0%
19.5%
20.0%
15.7%
15.0%
10.0%
5.0%
0.0%
Q3 FY16, Q3 FY16, Q3 FY16, Performance Q3 FY17 FX Q3 FY17, Q3 FY17, Q3 FY17,
GAAP Non-GAAP Non-GAAP CC Non-GAAP Non-GAAP GAAP
Adjustments Adjustments
FY16 FY17
FX Q3 FY17 Q3 FY17
Q3 Q3
Impact Constant CC Growth /
FY17 FY16
$M / Change Currency1 Change2
1 Non-GAAP
2 Figures represent comparison to Q3 FY16 on a constant currency basis (Non-GAAP).
Q3 FY17 Earnings Results | February 21, 2017 | 8
CVG
Q3 FY17 HIGHLIGHTS
KEY PERFORMANCE DRIVERS1
Cardiac Rhythm & Heart Failure (CRHF)
Compia
Arrhythmia Mgmt: +MSD Heart Failure:+Upper-Teens MRI
SureScan
WW Tachy: +LSD; strong implants in US Driven by recent HeartWare CRT-D
WW Brady: LSD decline acquisition; integration on track
US: Modest share decline CRT-D: MSD growth driven by US
Reveal LINQ pull-through Japan benefitted from continued
HSD Growth in CRHF and APV; Diagnostics: Mid-teens Reveal LINQ share gains following strong launch
LSD growth in CSH AF Solutions: Mid-twenties Continued
share gain in EU/US; Japan >100% growth
of Compia MRI and Amplia MRI
CRT-P: share loss from lack of quad
Total $2,548 5% 6%
Aortic & Peripheral Vascular (APV)
U.S. 1,320 5 5 Aortic: +MSD Peripheral & endoVenous: Heli-FX
Non-U.S. Dev 815 5 7 EndoAnchor
US: Flat growth; Heli-FX EndoAnchor: +HSD
EM 413 7 10 driving strong growth and AAA pull-
DCB: US & WW market share leader
Total $2,548 5% 6% through, offset by competitive headwinds
IN.PACT Admiral DCB high-30s IN.PACT
in TAA
Pricing uplift from 150mm length Admiral
OUS: HSD growth
Q4 Growth Outlook: MSD Maintained market leadership in EU
AAA: MSD growth; Endurant with
despite pressure on price and
ChEVAR indication CE Mark received in Q3
competitive registry enrollment
1 Figures represent comparison to Q3 FY16 on a constant currency basis (Non-GAAP).
FX Assumptions
Q4 FY17 FY17 FY18
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 Operating cash flows less property, plant and equipment additions (non-GAAP)
Q3 FY17 Earnings Results | February 21, 2017 | 14
1
APPENDIX
ACRONYMS / ABBREVIATIONS
Growth Business Specific
AAA Abdominal Aortic Aneurysm ENT Ear, Nose, & Throat
DD Double Digits
AF Atrial Fibrillation Extracorp Extracorporeal
HSD High-Single Digit
APV Aortic & Peripheral Vascular HF Heart Failure
LDD Low-Double Digits
BMP Bone Morphogenetic Protein IIM Intensive Insulin Management
LSD Low-Single Digit Brady Bradycardia MDT Medtronic
MSD Mid-Single Digit CGM Continuous Glucose Monitoring MITG Minimally Invasive Therapies Group
CRHF Cardiac Rhythm & Heart Failure MRI Magnetic Resonance Imaging
Other
Cardiac Resynchronization Therapy
CRT-D NDT Non-Intensive Diabetes Therapies
APAC Asia Pacific FY Fiscal Year Defibrillator
Cardiac Resynchronization Therapy
CRT-P NV Neurovascular
Bps Basis Points NC Not Comparable Pacemakers
CSH Coronary & Structural Heart PMR Patient Monitoring & Recovery
CC Constant Currency Ops Operations
CVG Cardiac & Vascular Group RTG Restorative Therapies Group
Constant Currency
CCCW OM Operating Margins
Constant Weeks DVT Deep Vein Thrombosis SCS Spinal Cord Stimulation
Outside the United
Dev Developed OUS
States DCB Drug Coated Balloon Sol Solutions
Research & DES Drug Eluting Stent TAVR Transcatheter Aortic Valve Replacement
EM Emerging Markets R&D
Development
Europe, Middle East & DSS Diabetes Services & Solutions
EMEA Rep Reported
Africa
Selling, General &
EPS Earnings per Share SG&A
Administrative