Slides
Page 1
Geoff Martha, Chairman & Chief Executive Officer Bernstein’s 41st Strategic Decisions Conference May 29, 2025
Page 2
3 Bernstein Strategic Decisions Conference | May 29, 2025 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, changing global trade policies, material acquisition and divestiture transactions, 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-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 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-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, 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 foreign currency and fourth quarter and full year revenue in the current and prior year reported as "Other". Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis. References to sequential revenue changes are in comparison to the prior fiscal quarter and 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. Transaction details The separation is expected to occur through a series of capital markets transactions, which may include a spin-off, split-off, offering, or combination thereof, of our remaining shareholdings in New Diabetes Company. While a split-off is the company's current preferred separation structure, a final decision has not been reached at this time.
Page 3
1Estimate based on 2024 calendar year revenue from public filings of leading Diabetes device manufacturers as identified by Seagrove Partners Cardiovascular Neuroscience Medical Surgical Diabetes $12.5B FY25 revenue $9.8B FY25 revenue $8.4B FY25 revenue $2.8B FY25 revenue $40B Market $25B Market $34B Market $16B Market1 HSD Market growth MSD Market growth MSD Market growth DD Market growth Intense focus on highest margin growth drivers where we have leading core competencies Announced intent to separate Bernstein Strategic Decisions Conference | May 29, 20254 Leading franchises in attractive MedTech markets Innovation-driven growth and category leadership for healthcare systems and physician customers
Page 4
Expanding the boundaries of medical technology at scale “In the moment” launches and strong innovation with even more exposure to high-growth, high-margin markets Note: Relative positioning is not intended to signify relative timing; Forward looking statements regarding products under development are subject to risks and uncertainties. Refer to Forward Looking Statements disclosure on slide 2 for additional details. Bernstein Strategic Decisions Conference | May 29, 20255 Tibial Hypertension Cardiac Ablation Solutions Neuromodulation Fortified Base Business Symplicity Spyral Renal Denervation System PulseSelect Single shot PF ablation catheter Sphere-9 Focal ablation catheter Affera Mapping & Ablation System Hugo RAS System Mitral / T ricuspid Implantable Tibial Neuromodulation System for bladder control Inceptiv Rechargeable Closed-Loop Spinal Cord Stimulator Percept DBS with BrainSense Adaptive Deep Brain Stimulation Intrepid Transcatheter Valve for Mitral & Tricuspid Replacement Next Very Soon “In the moment” Soft Tissue Robotics and others… and others…
Page 5
Pulsed Field Ablation | Revenue acceleration with generational growth drivers Poised to lead in PFA with our comprehensive product portfolio PulseSelect Single shot PF ablation catheter Sphere-9 Focal PF ablation catheter Affera Mapping & Ablation System Bernstein Strategic Decisions Conference | May 29, 20256 Sphere-360 Single shot PF ablation catheter ~$10B Market >20% Market growth ~10% Share Leading technology in an eager market Rapidly scaling to meet demand $1B in Incremental Revenue, Near-term line of sight $1B translates to ~3% additional topline growth on an annual basis Early innings of a substantial revenue opportunity
Page 6
Renal Denervation | Revenue acceleration with generational growth drivers Significant revenue growth driver with Symplicity Spyral , a revolutionary treatment for high blood pressure Symplicity Spyral Renal Denervation System Bernstein Strategic Decisions Conference | May 29, 20257 Hypertension is the leading modifiable cause of heart attack, stroke, and death; Despite medication, control rates remain low >100M people worldwide with hypertension >18M People with uncontrolled hypertension despite access to medication Every 1% penetration is $2-3B in revenue CMS Coverage Key Dates (on or before) July 13th Draft October 11th Final U.S. Opportunity Large healthcare systems Establishing outpatient service lines to rapidly scale Medtronic Hiring market development managers, clinical specialists, and healthcare economic managers to support demand
Page 7
Transforming healthcare at the intersection between technology and medicine Artificial Intelligence Robotics Sensing 8 Bernstein Strategic Decisions Conference | May 29, 2025 Inceptiv SCS with closed-loop technology Percept DBS with BrainSense aDBS technology Hugo Robotic Assisted Surgery (RAS) Touch Surgery AI-powered video review & analytics platform GI Genius Intelligent endoscopy module AiBLE Digital Surgical Ecosystem Mazor Robotic guidance system
Page 8
Accelerating earnings power Leveraging scale and strategic synergies to drive COGS efficiency 9 Bernstein Strategic Decisions Conference | May 29, 2025 Technology Shared platforms and development capabilities accelerate innovation and enhance R&D efficiency Commercial Enterprise account teams connect operational, financial, and clinical needs across major healthcare systems; strong discipline across strategic pricing and SG&A Manufacturing Strategic operations to capitalize on portfolio synergies, drive COGS efficiency, and enhance quality
Page 9
Decisive capital allocation Investing to drive future profitable growth while also returning capital to shareholders 10 Bernstein Strategic Decisions Conference | May 29, 2025 Investing for growth R&D $2.7B in FY25 FY26: Grow faster than revenue M&A Focused on tuck-ins that enhance growth/margin profile, support category leadership Return to shareholders Dividend $3.6B in FY25 Increased for 48th consecutive year Share repurchase $2.7B in FY25, net
Page 10
Ongoing portfolio management | Intent to separate Diabetes business Preferred path of IPO and subsequent split-off within 18 months 11 Bernstein Strategic Decisions Conference | May 29, 2025 A more focused Medtronic Creates a more simplified portfolio in high margin growth markets Unlocking shareholder value Post separation, expected to be accretive to Medtronic EPS, operating margin and gross margin; and creates New Diabetes Company shareholder base aligned with its financial profile An independent, scaled leader in Diabetes Leading, direct-to-consumer diabetes business, and the only company to commercialize a complete ecosystem to address intensive insulin management A win for both companies
Page 11
Driving change Stronger foundation coupled with performance AND mission-driven culture producing results 12 Bernstein Strategic Decisions Conference | May 29, 2025 Streamlined the operating model Implemented performance-driven incentives Brought in outside leadership to enhance execution Prioritized R&D investment to highest growth areas Centralized global ops, supply chain, and quality Transforming the culture and portfolio Executing divestitures Accelerated Cardiac Ablation Solutions to fastest growth in MDT; now >$1B revenue Enhanced Neuroscience and Surgical digital ecosystems with AI Advanced ENT category leadership & Ventilators Increased focus on high margin growth tied to Medtronic core strengths …and now Diabetes separation
Page 12
13 Bernstein Strategic Decisions Conference | May 29, 2025 Committed to creating significant, long-term shareholder value Strong foundation ensures resiliency and leverages scale to drive earnings power "In the moment” innovation driving growth today and a strong pipeline across the most attractive markets in MedTech Active portfolio management and decisive capital allocation focused on high margin growth tied to our core strengths
Page 13
Geoff Martha, Chairman & Chief Executive Officer Thierry Piéton, Executive Vice President & Chief Financial Officer Fireside Chat Bernstein Strategic Decisions Conference May 29, 2025 Contact: investor.relations@medtronic.com