Medtronic : 2021 Virtual Wells Fargo Healthcare Conference Presentation

WELLS FARGO VIRTUAL HEALTHCARE CONFERENCE

September 9, 2021

BOB WHITE

EVP AND PRESIDENT, MEDICAL SURGICAL PORTFOLIO

RYAN WEISPFENNING

VP, HEAD OF INVESTOR RELATIONS Email: [e-mail]

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 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. 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 material acquisitions or divestitures. Forward-looking diluted non- GAAP EPS projections exclude 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-lookingnon-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. GAAP to non-GAAP reconciliations can be found attached.

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 significant acquisitions or divestitures and currency. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic 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.

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MEDTRONIC: ACCELERATING REVENUE GROWTH

INDUSTRY LEADING PIPELINE COMING TO FRUITION

	• Best pipeline in company's history, launching now and waves to come
ROBUST	• Going on the offensive and winning share in an increasing number of businesses
PIPELINE	•	Creating and disrupting big markets with significant growth potential
	•	Putting the Tech in MedTech

NEW OPERATING

MODEL &

ENHANCING

CULTURE

DOUBLE DIGIT SHAREHOLDER RETURNS

• Empowering operating units to simplify the organization, accelerate decision making, and improve commercial execution
• Leveraging enterprise scale: technology platforms, strategic customer relationships, and operations
• Upgrading culture; being bold and competitive on top of mission
• ESG efforts grounded in our mission; goal of carbon neutral in operations by end of the decade
• 5%+ annual organic revenue growth; 8%+ EPS growth target over long range
• Significant free cash flow conversion and strong balance sheet enables reinvestment in organic R&D, tuck-in M&A, venture investments, and strategic partnerships
• 44 consecutive years of dividend increases

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THE WORLD'S LEADING MEDICAL TECHNOLOGY COMPANY

WITH A MISSION TO ALLEVIATE PAIN, RESTORE HEALTH AND EXTEND LIFE

72 OPERATE IN

MILLION+ 150+

LIVES IMPROVED	COUNTRIES
IN FY21

OUR GLOBAL PRESENCE

EUROPE, MIDDLE EAST, & AFRICA

GREATER

$2.5B	R&D SPEND
IN FY21
$475M+	CLINICAL INVESTMENTS
	IN FY21
300+	CLINICAL TRIALS
IN FY21
49,000+	PATENTS
	IN OUR PORTFOLIO

$30.1 FY21

BILLION TOTAL

REVENUE

Diabetes

$2.4B Cardiovascular

$10.8B

Neuroscience $8.2B

$8.7B

Medical

Surgical

Emerging Markets

CHINA

AMERICAS

ASIA PACIFIC

90,000	11,200+
EMPLOYEES	CLINICAL PROFESSIONALS
	SCIENTISTS

Non-US

$4.8B

United

$9.8B $15.5B States

ENGINEERS

Developed

1. Organic Y/Y growth.
2. Non-GAAP.Pro Forma Y/Y growth. Q2 through Q4 FY18 and Q1 FY19 adjusted to exclude the PMR divestiture in baseline.

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MDT

Q1 FY22 HIGHLIGHTS

Revenue:

DIAB		EM
7%
	16%
	CV
NS
36%		U.S.
28%
		51%
		Non-U.S.
		Dev
MS		33%
29%
	Revenue	As Rep	Organic2
	$M1	Y/Y %	Y/Y %
Cardiovascular	2,890	18.8	14.8
Medical Surgical	2,322	28.9	24.7
Neuroscience	2,204	28.7	26.0
Diabetes	572	1.8	(2.8)
Total	$7,987	22.7%	19.0%
U.S.	4,101	22.4	22.4
Non-U.S. Dev	2,601	19.6	11.2
EM	1,286	31.1	24.7
Total	$7,987	22.7%	19.0%

Other Financial Highlights:

	Diluted	Y/Y	CC3	YTD Cash Flow	$1.3B
	EPS	Y/Y	from Ops
GAAP	$0.56	55.6%	N/A	YTD Free5Cash	$0.9B
Non-GAAP	$1.41	127.4%	122.6%
Flow

STRONG RESULTS ON SOLID EXECUTION & PROCEDURE VOLUME RECOVERY; RAISING FULL YEAR EPS GUIDANCE

• REVENUE: Grew 19% Y/Y; procedure volumes for most of our businesses at or above pre-pandemic levels despite pockets of COVID resurgence; market share gains across a number of our businesses
• • Cardiovascular: Grew 15%; led by continued outperformance in CRM, which added over 3 points of share reaching highest market share in over a decade
  • Medical Surgical: Grew 25%, elective procedures continue to recover; Hugo™ RAS launch underway with initial procedures in select markets
  • Neuroscience: Grew 26%; above market growth in Spine, Pelvic Health, and Pain Stim
  • Diabetes: Declined 3%, including approx. 6% negative impact from extra selling week in prior year; OUS strength offset by competitive pressure in the U.S. as we await product approvals
  • Geographies: U.S. grew low-20s; Western Europe grew low-teens; Emerging markets grew mid-20s led by Latin America, Middle East & Africa, and China
• EPS: Non-GAAP EPS $1.41 grew 127% Y/Y

1. Data has been intentionally rounded to the nearest million and, therefore, may not sum.
2. Figures represent comparison to Q1 FY21 after adjusting for significant acquisitions or divestitures and currency.
3. Figures represent comparison to Q1 FY21 on a constant currency basis.

4 Operating cash flows less property, plant, and equipment additions.

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