Medtronic : Q4 FY20 Presentation

MEDTRONIC PLC Q4 FY20

EARNINGS PRESENTATION MAY 21, 2020

• COVID-19RESPONSE
• Q4 FY20 CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS
• FY20 FINANCIAL HIGHLIGHTS
• FREE CASH FLOW
• FY21 RTG REPORTING STRUCTURE

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 business, operations and production, as well as demand for our offerings, and on our employees, medical professional and healthcare system, communities in which we operate, and our financial results and condition, competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation and general economic conditions and other risks and uncertainties described in the company's periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company, as filed with the U.S. Securities and Exchange Commission. 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 U.S. 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. GAAP to non-GAAP reconciliations are provided on our website and can be accessed using this link.

Financial Comparisons

References to quarterly results increasing, decreasing, or remaining flat are in comparison to Q4 FY19, and references to annual results increasing, decreasing, or remaining flat are in comparison to FY19. References to organic revenue growth exclude the impact of significant acquisitions or divestitures and currency. Unless stated otherwise, quarterly and annual rates and ranges are given on a constant currency basis, which adjusts for the impact of currency.

Q4 FY20 Earnings Results | May 21, 2020 | 2

MDT

COVID-19 RESPONSE

UNPRECEDENTED CHALLENGE REQUIRES UNPRECEDENTED RESPONSE

TO SUPPORT EMPLOYEES, CUSTOMERS AND COMMUNITIES

EMPLOYEE SAFETY AND		CUSTOMER SUPPORT AND		COMMUNITY
PROTECTION		PRODUCT AVAILABILITY		CITIZENSHIP

• Monetary Assistance and Aid:Financial support and awards granted through programs and policies developed for employees significantly impacted byCOVID-19;instituted measures to help protect field employees from significant impacts to their incentive compensation
• Facility Sanitization:Facilities regularly cleaned and sanitized while utilizing personal protection equipment and social distancing best practices for employees
• Telehealth:Employees and their family members provided with access to a free, virtual COVID-19 evaluation and monitoring tool

• Ventilator Capacity:Significantly expanded production of ventilators and on track to increase production five-fold from pre-pandemic levels by the end of June
• Collaboration and Partnership:Partnered with technology and manufacturing companies, such as Intel, SpaceX, and Foxconn, to create significant capacity and add remote monitoring features; released Puritan Bennett™ 560 ventilator design specifications publicly, resulting in over 125,000 registrations
• Remote Monitoring Solutions:Developed and deployed remote monitoring solutions to reduce exposure toCOVID-19for employees, customers and patients

Q4 FY20 Earnings Results | May 21, 2020 | 3

• Donations & Matching:Pledged over $36 million in monetary and product donations since February to support health systems and global communities while offering a 2:1 match on monetary donations made by employees and retirees
• External News Hub:Launched platform to provide latest updates to company's response to the pandemic: Medtronic.com/covid19
• Expansion of Medtronic Assurance Program:Provides support to diabetes customers who have lost their health insurance due toCOVID-19-related job loss; current, eligible, U.S. customers can receive a3-monthsupply of glucose sensors, infusion sets and reservoirs at no cost

Q4 FY20 CONSOLIDATED RESULTS & GROUP REVENUE HIGHLIGHTS

MDT

Q4 FY20 HIGHLIGHTS

Revenue:

DIAB		EM
10%
CVG	15%
		U.S.
RTG	33%
	48%
25%
		Non-U.S.
		Dev
MITG		37%
32%
	Revenue	As Rep	CC2	Organic
	$M1	Y/Y %	Y/Y %	Y/Y %
CVG	2,004	(34.3)	(32.8)	--
MITG	1,934	(14.2)	(12.2)	--
RTG	1,490	(32.7)	(31.8)	(32.5)
Diabetes	570	(8.9)	(6.7)	--
Total	$5,998	(26.4%)	(24.8%)	(25.0%)
U.S.	2,852	(33.4)	(33.4)
Non-U.S. Dev	2,218	(13.9)	(11.0)
EM	929	(27.8)	(23.5)
Total	$5,998	(26.4%)	(24.8%)

PROCEDURE DEFERRALS DUE TO COVID-19 CONSISTENT WITH INTRA- QUARTER UPDATE; CONTINUING TO INVEST IN PEOPLE & PIPELINE

COVID-19:Healthcare resources being diverted to respond to the pandemic resulted in

deferral of procedures and a decline in customer capital equipment and bulk purchases,

offset by increased demand for products used in the fight against COVID-19

REVENUE:-24.8% constant currency, -25.0% organic, consistent with intra-quarter

update and MedTech industry

• CVG:Declined -32.8% reflecting deferred procedures and reduction in typical end of year customer bulk

purchases

• MITG:Declined -12.2% driven by broad global deferral of surgical procedures, partially offset by increased

demand for Respiratory and Renal Care Solutions products

• RTG:Declined -32.5% organic, reflecting deferrable procedure mix and higher proportion of capital

equipment

• Diabetes:Declined -6.7% driven by delays in new patient starts due to closing of physician offices, partially

offset by stocking of supplies, primarily in International markets

• Geographies:China experienced full quarter impact, while U.S. and WE impact began mid-March

• Americas:Declined -32%; U.S. tracking with expectations until mid-March

• EMEA:Declined -10%; tracking with expectations until mid-March; WE declined 32% in April

• Asia Pacific:Declined -13%;COVID-19 cases peaked in Korea and ANZ within the quarter

•China:

Other Financial Highlights:

	Diluted	As Rep	CC2
	EPS	Y/Y	Y/Y%
GAAP	$0.48	(44.8%)	NC
Non-GAAP	$0.58	(62.3%)	(62.3%)

Cash Flow	$1.5B
from Ops

Free Cash	$1.1B
2
Flow

Declined -38%; sequential revenue improvement from mid-March

EPS:Non-GAAP EPS declined 62.3%; deleveraging consistent with intra-quarter update

DIVIDEND:Announced quarterly increase to $0.58; Annual $2.32 from prior $2.16; 43rd

consecutive year of dividend increases

1. Data has been intentionally rounded to the nearest million and, therefore, may not sum.
2. Figures represent comparison to Q4 FY19 on a constant currency basis.

3 Operating cash flows less property, plant, and equipment additions.	Q4 FY20 Earnings Results | May 21, 2020 | 5

MDT

Q4 FY20 GAAP TONON-GAAPSELECT FINANCIAL INFORMATION

Non-GAAP Adjustments

	Q4 FY20				Acquisition-	Gain/Loss on	Medical	Exit of	Contribution	IPR&D	Certain Tax	Q4 FY20		Q4 FY19	Y/Y
	Amortization Restructuring	Litigation		Growth /
	GAAP	Related	Minority	Device	Business	to MDT	Charges	Adjustments	Non-GAAP		Non-GAAP
				Investments	Regulations	Foundation		Change
Net Sales ($M)	5,998											5,998		8,146	-26.4%
Cost of Products Sold	2,264		(38)		(2)		(7)					2,217		2,448	-9%
Gross Margin	62.3%											63.0%		69.9%	-690 bps
SG&A	2,360		(57)		(37)							2,266		2,565	-12%
% of Sales	39.3%											37.8%		31.5%	-630 bps
R&D	567						(10)					557		594	-6%
% of Sales	9.5%											9.3%		7.3%	-200 bps
Other (Income) Expense, Net	(17)				48			(11)		(25)		(5)		(30)	-83%
% of Sales	-0.3%											-0.1%		-0.4%	-30 bps
Amortization of Intangible Assets	439	(439)										0		0	0
Restructuring Charges, Net	31		(31)									0		0	0
Certain Litigation Charges	37			(37)								0		0	0
Operating Profit	317	439	126	37	(9)	--	17	11	--	25	--	963		2,569	-63%
Operating Margin	5.3%											16.1%		31.5%	-1,540 bps
Other Non-Operating Income, Net	(51)					(30)						(81)		(94)	-14%
Net Income attributable to MDT ($M)	646	358	105	12	(12)	30	14	5	--	22	(403)	777		2,077	-63%
Diluted EPS ($)	0.48	0.27	0.08	0.01	(0.01)	0.02	0.01	0.00	--	0.02	(0.30)	0.58		1.54	-62.3%

1 The data in this row has been intentionally rounded to the nearest $0.01 and, therefore, may not sum.

Q4 FY20 Earnings Results | May 21, 2020 | 6

MITG

Q4 FY20 RESULTS

VENTILATOR & AIRWAY DEMAND DRIVES RGR GROWTH

DEFERRABLE PROCEDURE MIX IMPACTS SI GROWTH IN LATE MARCH & APRIL

RGR Growth Offset by

COVID-19 Impact on SI Volumes

	EM	U.S.
	19%
RGR	39%
40%

SI

60%

Non-

U.S. Dev

42%

	Revenue	As Rep	CC1
	$M	Y/Y %	Y/Y %
SI	1,168	(23.6)	(21.6)
RGR	766	5.5	7.7
Total	$1,934	(14.2%)	(12.2%)
U.S.	763	(21.4)	(21.4)
Non-U.S. Dev	805	(5.7)	(2.7)
EM	366	(14.9)	(10.0)
Total	$1,934	(14.2%)	(12.2%)

1 Figures represent comparison to Q4 FY19 on a constant currency basis.

• Respiratory, Gastrointestinal, & Renal (RGR):+7.7% growth behind increased demand for Respiratory and Renal Care Solutions products
• Respiratory:Mid-40's growth as MITG seeks to meet ventilator needs globally; low-20's growth in Airway products
• • On track to increase ventilator production 5x by end of June
  • Received U.S. FDA Emergency Use Authorization for the PB560 ventilator in the U.S.
  • MDT ventilators are designed for acute care settings(in-hospital patients in intensive care units, emergency departments or on the general care floors) and sub-acute segment (out of hospital, long-term care facilities or home-ventilated patients)
  • Ventilator portfolio primarily includes the PB980, PB840, PB560, and HT70 models
• Patient Monitoring: Flat performance as deferrable procedure mix offset regional spikes in demand for Nellcor™ pulse oximetry and Microstream™ capnography products
• • Capnography had strong DD growth fromCOVID-19 demand
• Renal Care Solutions:HSD growth due to strong demand for Renal Access Catheters and Acute/Chronic Bellco™ consumables
• • FDA grants marketing authorization for Carpediem™, first dialysis for pediatric use U.S.; in Europe Carpediem™ available since 2012
• GI Solutions:Low-20's declines, reflecting deferrable procedure mix
• Surgical Innovations (SI):-21.6% declines due to broad global COVID-19 impact on surgical procedures, particularly Bariatric, Colorectal, GYN, Hernia and Thoracic
• Advanced Surgical:Low-20's declines from April halting of deferrable procedures; low-20's declines in both Advanced Energy and Advanced Stapling
• General Surgical:Low-20's declines due to procedure volume reduction

Puritan

Bennett™

980

Puritan

Bennett™

560

Nellcor™

Pulse

Oximetry

Microstream™ Capnography

Q4 FY20 Earnings Results | May 21, 2020 | 7

CVG

Q4 FY20 RESULTS

DEFERRED PROCEDURES & BULK ORDERS DRIVE DECLINES

STRONG RDN AND TAVR DATA AT ACC.20; MICRA™ AV LAUNCHED IN U.S.

Declines Driven by Procedure Volumes across Businesses and Geographies, and Reduction in Bulk Purchases

APV		EM
18%		17%	U.S.
	CRHF		44%
	47%
CSH		Non-
35%		U.S. Dev
		39%

	Revenue	As Rep	CC1
	$M	Y/Y %	Y/Y %
CRHF	940	(39.5)	(38.1)
CSH	697	(29.9)	(28.1)
APV	367	(26.9)	(25.5)
Total	$2,004	(34.3%)	(32.8%)
U.S.	880	(41.7)	(41.7)
Non-U.S. Dev	785	(21.6)	(19.0)
EM	340	(36.9)	(33.2)
Total	$2,004	(34.3%)	(32.8%)

1 Figures represent comparison to Q4 FY19 on a constant currency basis.

• Coronary & Structural Heart:-28.1% decline, driven by COVID-19 procedure impact; mid-20's declines in Structural Heart, low-30's declines in Coronary
• Renal Denervation:OFF-MED pivotal data demonstrated RDN works; magnitude of effect is clinically relevant, and may be understated; RDN is 'always on'
• TAVR:Approx. -30% decline; strong implant trends pre-COVID-19 impact; estimated held sequential WW procedure share
• • Evolut®Low Risk bicuspid trial data supports Evolut®as valve of choice for bicuspid patients who are TAVR-indicated; bicuspid patients represent ~60% of Low Risk population
  • Low Risk LTI trial data showed different valve designs may lead to differences in durability
• Cardiac Surgery:High-teens declines with strong ECMO demand
• Coronary:Low-30's declines driven by reduction in procedure volumes; held sequential WW share
• Cardiac Rhythm & Heart Failure:-38.1% as April declines in businesses with more deferrable procedures weighed on the quarter; Micra™ AV a bright spot
• Arrhythmia Management:High-30'sdeclines
• • High-20'sPacing declines; strong, low-20's U.S. leadless pacing growth - over 60% in February and March - fueled by launch of Micra™ AV
  • Mid-30'sICD declines; therapy considered 'moderately deferrable'
  • • Cobalt™/Crome™ FDA approvedearly-May; Europe launch underway
  • High-40'sAFS declines given COVID-19 impact on more deferrable procedures
  • High's-50'sDiagnostics declines as April deferrable procedure volumes slowed dramatically
• Heart Failure:High-30's declines; CRT-Dlow-40's declines; CRT-Pmid-30's declines; LVADs high- 30's declines
• Aortic, Peripheral & Venous:-25.5% decline due to COVID-19 impacts
• Low-20'sAortic declines, with both TAA and AAA down mid-20's
• Mid-30'sVenous declines given more deferrable nature of procedures
• Low-30'sWW DCB declines

CoreValve™ Evolut™PRO+

Symplicity™ RDN

System

Micra™ AV

Transcatheter

Pacing System

Cobalt™ & Crome™

ICDs & CRT-Ds

Valiant Navion™

Q4 FY20 Earnings Results | May 21, 2020 | 8

RTG	CAPITAL EQUIPMENT & PROCEDURE DEFERRALS
Q4 FY20 RESULTS	TRANSLATE TO ACROSS THE BOARD DECLINES

COVID-19 Headwinds Offset Early

Positive Trends

Pain		EM
13%	Spine	12%
Specialty	32%
	Non-US
13%		U.S. 63%
		Dev
		26%
Brain
41%

• Brain Therapies:-24.7% decline allayed by relative strength in Neurovascular
• Neurovascular:HSD decline partially offset by growth in Ischemic Stroke therapy products
• • Ischemic: HSD growth driven by sales of Riptide™ aspiration system and React™ aspiration catheters
  • Hemorrhagic:Mid-teens decline driven by deferrals of hemorrhagic stroke cases where unruptured aneurysm is not at immediate risk of rupture
• Neurosurgery:Down approximately -30% due to hospitals delaying capital equipment purchases
• • Relative strength from Midas Rex™ MR8™ powered surgical instruments and StealthStation™ sales
• DBS:High-30's decline resulting from procedure deferrals and reduction of normal year-end customer bulk purchases

Solitaire™ X

Revascularization

Device

Mazor X Stealth™

Edition

• Spine:-32.0% organic decline driven by procedure deferrals and a reduction in typical end-of-year customer bulk purchases

	Revenue	As Rep	CC1
	$M	Y/Y %	Y/Y %
Brain	615	(26.0)	(24.7)
Spine	480	(30.5)	(29.8)
Specialty	197	(43.9)	(43.0)
Pain	198	(42.1)	(41.5)
Total	$1,490	(32.7%)	(31.8%)
U.S.	935	(36.5)	(36.5)
Non-U.S. Dev	380	(21.5)	(19.2)
EM	175	(32.2)	(28.3)
Total	$1,490	(32.7%)	(31.8%)

• Spine revenue combined with enabling tech2: -33.7%organic decline reflecting delays in capital equipment evaluations and purchases
• Core Spine:Mid-20's decline driven by procedures deferrals
• Specialty Therapies:-43.0% decline indicative of procedure deferrals
• ENT:High-20's decline reflecting pullback in ENT procedures
• Pelvic Health:High-50's decline due to deferrals of most SNM procedures; share increased following European launch of InterStim™ Micro
• Pain Therapies:-41.5% decline resulting from procedure deferrals
• Interventional:Comparatively fewer deferred procedures
• Pain Stim:Declined due to deferrals of most pain stim procedures
• Targeted Drug Delivery:Declined due to procedure deferrals

InterStim™ Micro &

InterStim™

SureScan™ MRI Leads

DTM™ SCS Therapy on Intellis™ Platform

1. Figures represent comparison to Q4 FY19 on a constant currency basis.
2. Spine-relatedenabling technologies revenue reflected in Neurosurgery business within Brain division.

Q4 FY20 Earnings Results | May 21, 2020 | 9

DIABETES

Q4 FY20 RESULTS

SLOWER NEW PUMP STARTS OFFSET BY CONSUMABLES

OUS DEVELOPED MARKETS GROWTH PARTIALLY OFFSETS COVID-19 PRESSURES

Continued WW CGM Growth;

COVID-19 Pressured New

Patient Starts

EM 8%

U.S. 48%

Non-US

Dev 44%

	Revenue	As Rep	CC1
	$M	Y/Y %	Y/Y %
U.S.	274	(17.0)	(17.0)
Non-U.S. Dev	248	5.1	9.3
EM	48	(20.0)	(13.3)
Total	$570	(8.9%)	(6.7%)

1 Figures represent comparison to Q4 FY19 on a constant currency basis.

• International Revenue:Accounts for approximately half of total sales, with 5% growth despite COVID-19 pressure
• Positive offsets in EMEA with supplies and sensor stocking
• U.S. Revenue:Declined high-teens, primarily due to new patient starts delayed by closing of physician offices, and competitive challenges
• Guardian™ Connect grew LDD despiteCOVID-19 headwinds
• CGM:Growth driven by WW strength in both Integrated and Stand Alone CGM
• Stand Alone CGM:Guardian™ Connect Smart CGM system continues momentum with growth despite COVID-19
• Integrated CGM:Strong global growth driven by increased CGM penetration & new patient acquisitions, partially offset by COVID-19 impacts
• Insulin Pumps:COVID-19 has resulted in the closing of physician offices and delayed new patient starts; continued competitive pressures in the U.S.
• Next Tech Pathway upgrade program continues to gain acceptance
• MiniMed™ 670G installed base increased sequentially to ~249,000 trained, active users benefiting from SmartGuard™ technology
• Medtronic Assurance Program:Expanded support for diabetes customers who have lost their health insurance due to COVID-19-related job loss
• U.S. customers withCOVID-19 related job loss can receive a 3-month supply of glucose sensors, infusion sets and reservoirs at no cost

MiniMed™

670G

MiniMed ™

640G

Guardian™

Sensor 3

Guardian™

Connect w/

Sugar.IQ™

Q4 FY20 Earnings Results | May 21, 2020 | 10

FY20 FINANCIAL HIGHLIGHTS

MDT

FY20HIGHLIGHTS

Revenue:

DIAB		EM
8%
	16%
	CVG
RTG	36%		U.S.
27%		Non-U.S.	52%
		Dev
MITG		32%
29%
	Revenue	As Rep	CCC1
	$M	Y/Y %	Y/Y %
CVG	10,468	(9.0)	(7.6)
MITG	8,352	(1.5)	0.2
RTG	7,725	(5.6)	(4.7)
Diabetes	2,368	(1.0)	0.8
Total	$28,913	(5.4%)	(4.0%)
U.S.	14,919	(7.9)	(7.9)
Non-U.S. Dev	9,287	(3.6)	(0.9)
EM	4,707	(0.5)	2.8
Total	$28,913	(5.4%)	(4.0%)

PRODUCT PIPELINE READY TO KICK IN; 97% FREE CASH FLOW CONVERSION

REVENUE:Q4 impact of COVID-19 weighed heavily on full year results; executed on our broad,
sustainable growth strategy
• Continuing to drive therapy innovation and global market penetration
• Steady cadence of innovative, new product launches
PIPELINE:Several recent approvals; launches interrupted by COVID-19 but positions us well
competitively
• Despite COVID-19, Micra™ VR together with recently launched Micra™ AV grew high-20's in the U.S. in FY20
• Product features available on new products even more valuable in current environment
•	Remote monitoring
•	Distance programming
• Launched Evolut™ PRO+, Midas Rex™ MR8™ powered surgical instruments, Percept™ DBS with BrainSense™
technology, Stimgenics DTM™ launch on Intellis™ platform, Cobalt™/Crome™, and Micra™ AV; expanded
MiniMed™ 670G through Europe; unveiled soft tissue robot
• Presented RDN OFF-MED, Stimgenics DTM™, TAVR Bicuspid and Leaflet Immobility clinical data; received Low Risk
indication expansion for TAVR
EPS:Non-GAAP EPS $4.59; declined 11.3% given significant Q4 deleveraging as the company
continued to invest in its people and pipeline
• Beat and raised EPS guidance each quarter in the first three fiscal quarters
• Delivered 50bps CC operating margin expansion in the first three fiscal quarters
	2

Other Financial Highlights:

	Diluted	As Rep	CCC1
	EPS	Y/Y	Y/Y%
GAAP	$3.54	3.8%	NC
Non-GAAP	$4.59	(12.1%)	(11.3%)

Cash Flow	$7.2B
from Ops

Free Cash	$6.0B
2
Flow

FREE CASH FLOW :$6.0B; conversion ratio3of 97% well above 80% target

CAPITAL ALLOCATION:Strategically executed balanced capital deployment

• Invested in future growth through disciplined investment in R&D and tuck-in acquisitions, including Titan Spine, Klue,

Stimgenics, and Digital Surgery

• Return to Shareholders: $2,894M in dividends and $664M in net share repurchases, representing 59% of Free Cash

Flow2and 57% of Non-GAAP Net Income

1. Figures represent comparison to FY19 on a comparable, constant currency basis.
2. Operating cash flows less property, plant, and equipment additions.

3 Conversion Ratio = Free Cash Flow divided by Non-GAAP Net Income.	Q4 FY20 Earnings Results | May 21, 2020 | 12

MDT

FY20 GAAP TONON-GAAPSELECT FINANCIAL INFORMATION

Non-GAAP Adjustments

	FY20					Gain/Loss on	Medical	Debt tender		Contribution			FY20		FY FY19	Y/Y Growth
	Amortization Restructuring	Litigation	Acquisition-	premium and	Exit of	IPR&D	Certain Tax
	GAAP	Related	Minority	Device	other	Business	to MDT	Charges	Adjustments	Non-GAAP		Non-GAAP	/ Change
				Investment	Regulations	Foundation
						charges
Net Sales ($M)	28,913												28,913		30,557	-5.4%
Cost of Products Sold	9,424		(155)		(5)		(20)						9,244		9,057	2%
Gross Margin	67.4%												68.0%		70.4%	-240 bps
SG&A	10,109		(168)		(103)								9,838		10,157	-3%
% of Sales	35.0%												34.0%		33.2%	-80 bps
R&D	2,331						(28)						2,303		2,330	-1%
% of Sales	8.1%												8.0%		7.6%	-40 bps
Other (Income) Expense, Net	71				42			7	(52)	(80)	(25)		(37)		141	-126%
% of Sales	0.2%												-0.1%		0.5%	60 bps
Amortization of Intangible Assets	1,756	(1,756)											0		0	0
Restructuring Charges, Net	118		(118)										0		0	0
Certain Litigation Charges	313			(313)									0		0	0
Operating Profit	4,791	1,756	441	313	66	--	48	(7)	52	80	25	--	7,565		8,872	-15%
Operating Margin	16.6%												26.2%		29.0%	-280 bps
Other Non-Operating Income, Net	(356)					(19)							(375)		(311)	21%
Net Income attributable to MDT ($M)	4,789	1,472	372	254	53	22	42	320	40	62	22	(1,242)	6,206		7,089	-12%
Diluted EPS ($)	3.54	1.09	0.28	0.19	0.04	0.02	0.03	0.24	0.03	0.05	0.02	(0.92)	4.59		5.22	-12.1%

Q4 FY20 Earnings Results | May 21, 2020 | 13

FREE CASH FLOW

MDT

COMPONENTS OF FREE CASH FLOW

$ Billions

Operating Cash Flow

CAPEX

Free Cash Flow

Non-GAAP Net Income

Conversion Ratio4

Conversion Ratio adjusted to include post-tax amortization

Included in Operating Cash Flow:

-Tax	Certain Litigation Payments, net1,2
Restructuring Payments
Pre	1
Other Payments1,3

Puerto Rico IRS Pre-Payment

Certain Other Tax Payments

FY16	FY17	FY18	FY19		FY20
$5.2	$6.9	$4.7	$7.0	$7.2
($1.0)	($1.3)	($1.1)	($1.1)	($1.2)
$4.2	$5.6	$3.6	$5.9
	$6.0

$6.2	$6.4	$6.5	$7.1	$6.2
67%	88%	55%	83%	97%
88%	114%	72%	105%	127%

$0.2	$0.3	$0.3	$0.5	$0.2
$0.2	$0.2	$0.2	$0.4	$0.5
$0.2	$0.3	$0.3	$0.2	$0.2
--	--	$1.1	--	--
$0.8	$0.4	$0.4	$0.4	$0.1

1. Cash flow impact does not reflect associated tax cost / benefit, as timing and amount are difficult to estimate.
2. Includes payments accrued as"Non-GAAP" charges, as well as COV acquisition opening balance sheet adjustments.
3. Includesacquisition-related,divestiture-related, and European Union medical device regulations charges, as well as contributions to the Medtronic Foundation.

4 Conversion Ratio = Free Cash Flow divided by Non-GAAP Net Income.

Q4 FY20 Earnings Results | May 21, 2020 | 15

FY21 RTG REPORTING STRUCTURE

MDT

FY21REVENUE REPORTING CHANGES - RESTORATIVE THERAPIES GROUP

RESTORATIVE THERAPIES GROUP

FY20 Structure

	BRAIN			SPINE			SPECIALTY			PAIN
	THERAPIES					THERAPIES			THERAPIES
	Neurovascular		Core Spine			ENT		Pain Stim
	Neurosurgery		Biologics			Pelvic Health		Targeted Drug
	DBS		Kanghui						Delivery
										Interventional

RESTORATIVE THERAPIES GROUP

New FY21 Structure

1

2

3

CRANIAL & SPINAL		SPECIALTY	NEUROMODULATION
TECHNOLOGIES		THERAPIES
Core Spine &		Neurovascular	Pain (Stim & Targeted
Biologics				Drug Delivery)

• ENT

Enabling		Brain Modulation
Technologies	Pelvic Health	(DBS)
(Neurosurgery)		Interventional

• China Orthopedics (Kanghui)

1	Combining Neurosurgery business		2	Moving Neurovascular business		3	Combining DBS business with
	with Spine division to form					Pain Therapies division to form
			toSpecialty Therapies division
	Cranial & Spinal Technologies division					Neuromodulation division

See following slide for restated historical revenue

Q4 FY20 Earnings Results | May 21, 2020 | 17

MDT

FY21RTG REVENUE REPORTING CHANGES - RESTATED HISTORICAL REVENUE

Recast to reflect new RTG reporting structure

All figures in $millions

World Wide

Business Unit	Q1 FY20	Q2 FY20	Q3 FY20	Q4 FY20	FY20
	Cranial & Spinal Technologies	1,050	1,117	1,117	798	4,082
	Specialty Therapies	563	575	588	420	2,147
	Neuromodulation	398	420	406	272	1,497
	Restorative Therapies Group	2,012	2,112	2,111	1,490	7,725

		Q1 FY20	Q2 FY20	Q3 FY20	Q4 FY20	FY20
	Cranial & Spinal Technologies	742	802	790	546	2,879
U.S.	Specialty Therapies	336	351	350	217	1,253
	Neuromodulation	261	287	270	172	990
	Restorative Therapies Group	1,338	1,440	1,409	935	5,122

Q4 FY20 Earnings Results | May 21, 2020 | 18

APPENDIX

ACRONYMS / ABBREVIATIONS

	Growth
DD	Double Digit
HSD	High-Single Digit
LDD	Low-Double Digit

	Other
~ or Approx.	Approximately
ANZ	Australia & New Zealand
bps	Basis Points
CAPEX	Capital Expenditures
CC	Constant Currency
COV	Covidien
Dev	Developed
EM	Emerging Markets
EMEA	Europe, the Middle East & Africa
EPS	Earnings Per Share
FDA	Food and Drug Administration
FY	Fiscal Year

	Other
GAAP	Generally Accepted Accounting
Principles
IPR&D	In-Process Research & Development
IRS	Internal Revenue Service
Ops	Operations
PLC	Public Limited Company
Q	Quarter
R&D	Research & Development
Rep	Reported
SEC	U.S. Securities & Exchange Commission
SG&A	Selling, General & Administrative
Tech	Technology
U.S.	United States
WW	Worldwide
WE	Western Europe
Y/Y	Year-over-Year
$M	Millions of Dollars

	Business Specific
AAA	Abdominal Aortic Aneurysm
ACC	American College of Cardiology
AFS	Atrial Fibrillation Solutions
APV	Aortic, Peripheral & Venous
CGM	Continuous Glucose Monitoring
CRHF	Cardiac Rhythm & Heart Failure
CRT-D	Cardiac Resynchronization Therapy -
Defibrillator
CRT-P	Cardiac Resynchronization Therapy -
Pacemaker
CSH	Coronary & Structural Heart
CVG	Cardiac & Vascular Group
DBS	Deep Brain Stimulation
DIAB	Diabetes
DCB	Drug Coated Balloon
DTM	Differential Target Multiplexed Waveform
ECMO	Extracorporeal Membrane Oxygenation
ENT	Ear, Nose, & Throat

	Business Specific
GYN	Gynecology
GI	Gastrointestinal
ICD	Implantable Cardioverter Defibrillator
LTI	Leaflet Thickening or Immobility
LVAD	Left Ventricular Assist Device
MDT	Medtronic
Med	Medical
MITG	Minimally Invasive Therapies Group
RDN	Renal Denervation
RGR	Respiratory, Gastrointestinal, & Renal
RTG	Restorative Therapies Group
SCS	Spinal Cord Stimulation
SNM	Sacral Neuromodulation
Stim	Stimulation
SI	Surgical Innovations
TAA	Thoracic Aortic Aneurysm
TAVR	Transcatheter Aortic Valve Replacement

Q4 FY20 Earnings Results | May 21, 2020 | 19