34TH ANNUAL J.P. MORGAN HEALTHCARE CONFERENCEdocshare04.docshare.tips/files/29590/295904288.pdf · Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Billions 34th

34TH ANNUAL J.P. MORGAN HEALTHCARE CONFERENCE

OMAR ISHRAKCHAIRMAN & CEO

JANUARY 11, 2016SAN FRANCISCO

FORWARD LOOKING STATEMENTSome of the statements contained in this program may be considered forward-looking statements whichprovide current expectations or forecasts of future results. These forward-looking statements generallyrelate to market and sales growth, growth strategies, financial results, use of free cash flow, productdevelopment and introduction, regulatory matters, restructuring initiatives, intellectual property rights,litigation and tax matters, mergers and acquisitions, divestitures, accounting estimates, financing activities,working capital adequacy, ongoing contractual obligations, competitive strengths, and sales efforts. They arebased on current assumptions and/or expectations that involve a number of uncertainties or risks. Theseuncertainties and risks include, but are not limited to, those outlined in Medtronic’s Annual Report on Form10-K for the year ended April 24, 2015, and other documents previously or subsequently filed with the U.S.Securities and Exchange Commission (SEC). Investors are advised to review any further disclosures whichmay be made in such reports filed periodically with the SEC. Forward-looking statements are made as oftoday's date, and the Company undertakes no duty to update them. In addition, non-GAAP to GAAPreconciliations are attached.

Historical Financial Data DefinitionsThis presentation refers to historical financial data that sums historical data of both Medtronic and Covidien.This data is different than the pro forma information previously included within certain SEC filings.Management believes that using these measures are a useful way to evaluate Medtronic’s underlyingperformance. All reconciliations of these measures to the most directly comparable GAAP financial measuresare attached.

Comparable Basis: Includes Covidien plc in the prior year comparison and aligns Covidien’s prior yearmonthly revenue to Medtronic’s fiscal quarters.Combined Basis: Combines Covidien’s closest reported quarter with Medtronic’s fiscal quarter in the prioryear comparison.

34th Annual J.P. Morgan Healthcare Conference | January 11, 20162

MEDTRONIC: UNIQUELY POSITIONED TO WIN IN GLOBAL HEALTHCARE

Revenue Growth: Strong execution leading to consistent mid-single digit growth resulting in above market performance

Operating Leverage: COV integration resulting in tangible and sustainable operating margin leverage at the high end of our baseline expectation of 200-400bps of EPS leverage

Capital Deployment: Disciplined capital deployment with a roadmap to increased accessible cash and dividend growth


Sustained Double-Digit Total Shareholder Returns Over the Long Term

Note: All references to revenue growth and EPS leverage are on a constant currency basis.

GUIDANCE UPDATE


REITERATING 2H FY16 REVENUE OUTLOOK; UPDATING FY16 EPS

Reiterating 2H FY16 revenue growth in the upper-half of our mid-single digit baseline range on a comparable, constant currency basis

REVENUE OUTLOOK

$4.36 to $4.40, up from $4.33 to $4.40

Reflects benefit of the permanent enactment of the U.S. R&D tax credit

Continues to include an expected $0.45 to $0.50 negative FX headwind

Implied 2H FY16 EPS leverage of over 1,000bps

FY16 EPS GUIDANCE

CAPITAL DEPLOYMENT

Net result of the capital allocations announced today are not expected to materially affect 2H FY16 net interest expense, net earnings, diluted weighted shares outstanding or diluted earnings per share

4

1

1 Constant currency.

CONSISTENT STRATEGIES DRIVING GROWTH VECTORS

TherapyInnovation

Globalization

Economic Value


MEDTRONIC STRATEGIES

UNIVERSAL HEALTHCARE

NEEDS

Improve Clinical Outcomes

Expand Access

Optimize Cost and Efficiency

SOURCES OF GROWTH

Growth Vector #1New

Therapies

Growth Vector #2Emerging Markets

Growth Vector #3Services and

Solutions

Operational Execution

+150 to 350bps

+150 to 200bps

+40 to 60bps

5

FINANCIAL MODEL

Reliable, consistent mid-

single digit growth

EPS leverage of 200-400bps

Return a minimum of 50% FCF to shareholders

Note: All references to revenue growth and EPS leverage are on a constant currency basis.

CREATING LONG-TERM SHAREHOLDER VALUEIMPROVING REVENUE, EPS AND FREE CASH FLOW GROWTH

NON-GAAP EPS2

ADJUSTED FREE CASH FLOW3

$3.00$3.50$4.00$4.50

FY11 FY12 FY13 FY14 FY15 FY16E

0.0%

2.0%

4.0%

6.0%

8.0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Billions


REVENUE GROWTH1 (Y/Y)

FY11 FY12 FY13 FY14 FY15 FY16

Mid-Single Digit Range

+6.0%+6.0%+4.0%+4.5%+2.0%+1.0%

02,5005,0007,500

FY11 FY12 FY13 FY14 FY15 FY16E1 Constant currency. Q1 FY11 and Q1 FY16 adjusted for extra week impact. Q4FY15 through Q2 FY16 on a comparable basis.2 Non-GAAP EPS on a constant currency basis. Leverage rounded to the nearest 50bps.3 FCF is operating cash flow minus capital expenditures.

Adjusted for litigation settlements.

Commitment: mid-single digit growth.

Commitment: EPS leverage of 200-400 basis points, constant currency.

Commitment: Return a minimum of 50% to shareholders.

6

400 bps of cc leverage

200bps 700-950bps400bps

400bps100bps

= Returned to shareholders.

-3.5%

CY2015 IN REVIEW: “THE NEW MEDTRONIC”


ACCELERATE Synergy opportunities for

COV’s Peripheral Vascular and Neurovascular divisions

Capital deployment and access to “trapped” cash

Share repo / dividends

Debt paydown

PRESERVE

Employee satisfactionand talent retention

Revenue and EPS growth across groups

OPTIMIZE >$850M cost synergies by FY18

Indirect sourcing

ERP consolidation

Real estate / manufacturing

1 2

3TRANSFORM

Delivering higher value in healthcare

Aligning solutions to emerging value-based payment models

Partnering with new stakeholders to transform the healthcare marketplace

4

Delivering on Commitments Made at Deal Announcement

Preserving and accelerating core strategies: Therapy Innovation, Globalization & Economic Value

Offering a more comprehensive and competitive growth platform

Diversifying revenue mix

Capturing operational synergies

Accretive to FY16 cash EPS and significantly accretive thereafter

Increasing access to capital and optimizing shareholder returns through deployment flexibility

ACQUISITION RATIONALE INTEGRATION PRIORITIES

INTEGRATION UPDATE: PRESERVE AND OPTIMIZE


TALENT, FINANCIAL METRICS, AND PRODUCTIVITY GAINS

Service Model Efficiency / Real Estate

Superior Sourcing

Global ERP Implementation

Centralizing targeted back-office processes in shared service centers

Maximizing real estate productivity

Renegotiating sourcing contracts for freight, logistics and distribution

Direct sourcing and self-insurance

Driving organizational efficiency through a common ERP platform

Medtronic and Covidien cultures continue to come together

Talent retention and employee satisfaction remains strong

Monthly survey encourages open communication

OPTIMIZE

PRESERVE1

2

TALENT RETENTION SUSTAINABILITY

VALUE CAPTURE PROGRAMS TO RESULT IN A MINIMUM OF $850M IN SAVINGS BY FY18

MITG34%

CVG 35%

Diabetes 6%

RTG 25%

FY15: $28.2B

FY14: $17.0B

CVG 52%

Diabetes 10%

RTG 38%

Manufacturing Consolidation

Optimizing manufacturing footprint in FY18+ (not included in >$850M guidance)

GROWTH PRESERVATION

0%

2%

4%

6%

8%

FY14 1H FY15 1H FY16

MDT INC. COV

2

MDT PLC

1 COV 1H FY15 represents Y/Y constant currency growth for calendar 1Q15 and 4Q14.

1

2 Comparable, constant currency. Q1 FY16 adjusted for extra week impact.3 FY15 revenue on a comparable basis.

Y/Y Revenue Growth (CC)

Diversification of MDT Revenue Base

3


COMPLIMENTARY PORTFOLIOS, VALUE-BASED HC LEADERSHIP INTEGRATION UPDATE: ACCELERATE AND TRANSFORM

TRANSFORM

ACCELERATE3

4

USING CATH LAB MANAGED SERVICES AS A ROADMAP FOR OR MANAGED SERVICES

Operating Room Managed Services (ORMS) applies MDT’s cath lab business model to an operating room setting

Utilizes the breadth of MITG products

6 ORMS deals representing ~$140M in cumulative revenue as of Q2 FY16

NEUROVASCULAR Critical element

of rapidly developing MDT Neuroscience strategy within RTG

Leveraging the neurologist call-point

PERIPHERAL VASCULAR

Leading U.S. DCB (IN.PACT Admiral)

Combined salesforce fully integrated and driving above market growth

Enabling broader partnerships

0%

10%

20%

30%

40%

Q4 FY15 Q1 FY16 Q2 FY16

+23%+25%

+32%

Y/Y Medtronic Neurovascular Growth

1 Q1 FY16 adjusted for extra week impact and Y/Y growth in comparable constant currency.

1

Complimentary solutions across the care continuum creating integrated offerings

Deep clinical and healthcare economics expertise

Covidien delivering in-hospital efficiencies

Market-leading distribution footprint

ESTABLISHING MEDTRONIC AS THE VALUE-BASED HEALTHCARE LEADER

CAPITAL ALLOCATION: IMPROVED CASH ACCESSIBILITY

PRE-COVIDIEN1 FY16E – FY18E

Accessible FCF

Trapped FCF

TrappedCash to B/S

M&A

Dividends

ShareRepurchase

~$11BAccessible

FCF

~$5.5BTrapped

FCF

$4BAccessibleB/S Cash

Financial Flexibility

IncrementalShare

Repurchase

Dividends

ShareRepurchase

Debt Paydown

~$9.3BUntrapped

B/S Cash

~$6BTrappedB/S Cash

• Only ~35% of Free Cash Flow Accessible• Issued Debt to Cover Additional Accessible

Cash Needs• Trapped Cash Accumulated• Returned ~50% of Free Cash Flow to

Shareholders

• ~65% of Free Cash Flow Accessible• Untrapping Cash; Already $9.3B in FY16• Return Minimum of ~50% of Free Cash Flow to

Shareholders; Target 40% Dividend Payout Ratio• Target A Credit Profile• Maintaining Healthy Financial Flexibility

Free cash flow (FCF) defined as Operating Cash Flow less Capital ExpendituresOuter rings are sources of cash. Inner rings are uses of cash.1. FY12-FY15, not including impact of Covidien acquisition.

Debt Issuance

10 34th Annual J.P. Morgan Healthcare Conference | January 11, 2016

Potential to accelerate payout ratio faster than previously communicated

DETAILS OF $9.3B CAPITAL DEPLOYMENT


INCREASED FLEXIBILITY IN CAPITAL ALLOCATION

SHARE REPURCHASES1

ADDITIONAL DELEVERAGING2

MAINTAIN FINANCIAL FLEXIBILITY3

Incremental $5 billion by the end of FY18

In addition to MDT’s current commitment to return a minimum of 50% of FCF each year

Opportunistically utilize existing Board authorization

Bias towards repurchasing shares earlier

Repay existing debt or debt coming due

Targeted commitments to debt investors by the end of FY18

Continue to target A-credit rating profile 0.0

3.0

6.0

9.0

12.0

15.0

18.0

FY10-FY12 FY13-FY15 FY16-FY18E

Net Share RepurchasesDividends

~$15B

Commitment: Return A Minimum of 50% of Free Cash Flow to Shareholders

~$7.0B~$6.2B

Incremental $5B Share

Repurchase

$ BillionsSTRONG RECORD OF RETURNING

CASH TO SHAREHOLDERS

Note: Free cash flow (FCF) defined as Operating Cash Flow less Capital Expenditures1 FY12 includes $213M of proceeds related to the sale of Physio-Control used for share repurchases.

1

11

STRONG, CONSISTENT TRACK RECORD OF DIVIDEND GROWTH

15%

20%

25%

30%

35%

40%

45%

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

$2.25

$2.50

$2.75FY

78

FY80

FY82

FY84

FY86

FY88

FY90

FY92

FY94

FY96

FY98

FY00

FY02

FY04

FY06

FY08

FY10

FY12

FY14

FY16

E

FY18

E

FY20

E

Dividend per Share CAGR5-year 11%10-year 15%20-year 17%38-year 18%

Dividend Payout Ratio now ~35%1

Dividend up +25% in FY16E

1 On a non-GAAP basis. Calculated as annual dividend per share divided by prior year non-GAAP earnings per share.


Member of S&P 500 Dividend Aristocrats38 Years of Increasing Dividend per Share

Payout Ratio1

Dividend per Share

Div

iden

d pe

r Sha

re Payout R

atio

TARGETING 40% PAYOUT RATIO


MITGCVG RTG Diabetes

Type 1 Diabetes

Type 2 Diabetes

Heart FailureSCA

CRHF

Comorbidity

Integrated Technology

Clinical / Regulatory Expertise

Sales to Large Entities (Governments / Providers)

Global Manufacturing / Operations / Distribution

Corporate Infrastructure

CLEAR FRAMEWORK FOR EXISTING PORTFOLIOSTRONG CROSS-GROUP SYNERGIES DRIVE STRATEGIC FIT

Hypertension

Arrhythmia

CAD

Strong Cross-Group

Synergies

Is Medtronic Positioned to Win?

What Value Does Medtronic Add?

Line of Sight to Improving Outcomes?

Portfolio Criteria

Coronary and Structural Heart

Aortic & Peripheral Vascular

Early Technologies

Patient Monitoring & Recovery

Brain

Spine

PainAortic & Venous Disease

CAD

RespiratoryDeep Vein

Thrombosis

InfectionNutritional

Insufficiency

StrokeENT

Spinal Deformity

Chronic Pain

Movement Disorders

Trauma

Pre-Diabetes

Integrated Care Solutions

AF

Heart Disease Degenerative Spinal Conditions

Diabetes Service & Solutions

Non-Intensive Diabetes Therapies

Intensive Insulin Management

Lung / Gastrointestinal Cancer

Surgical InnovationsGYN Bariatric

ColorectalThoracic

General Surgery

PAD Renal Care

LEVERAGING STRENGTHS ACROSS GROUPS AND CONTINUUM


DEVELOPING COMPREHENSIVE SOLUTIONS

STROKE THERAPY RENAL CARE SOLUTIONS (RCS)

~3M end stage renal disease (ESRD) patients WW, +2x over the next 10 years

MDT advanced dialysis offers low cost, high quality care using proprietary therapy. 90% less water than traditional single-pass HD

Chengdu government manufacturing and deployment agreement

~17M strokes annually worldwide

$70B annual cost to healthcare systems

MDT positioned as the only full-line supplier of device-based stroke therapy

Comprehensive platform anchored by key market leading product lines and therapies

Treating Root

Cause

Stabilizing Therapy

Identifying Root Cause

Therapy

Future Co-morbidity Applications

AF

Structural Heart

Therapies

SolitaireTM

Medina

Lazarus

PipelineTM Flex

Advanced Dialysis

ESRD Patient

Diabetes CGM/ Pump

Heart Failure

Devices

Carotid Stents

Optimized Management

Reveal LINQ ®

Vascular Access

DCB

SEEQ Patch

TYRX

DES

Reveal LINQ ®

SEEQ Patch

Care Management

Services

Care Management

Services

Stroke Patient

DISCIPLINED PORTFOLIO MANAGEMENT GOVERNS M&A AND STRATEGIC INVESTMENT


Strengthens Strategic Priorities Across Groups

Meets Financial Guidelines

Therapy Innovation

MITGCVG RTG Diabetes

Medtronic has Announced $1.5B of Strategic M&A Since Closing Covidien

Clear financial value propositionMinimal to no “net” EPS dilution

Mid-teens risk-adjusted return hurdle

Globalization

Economic Value

Partnership

Investment

Partnership

2

3

Meets Portfolio Criteria

1

Partnership

Partnership

THERAPY INNOVATION$ CONTRIBUTION

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0FY

11

FY12

FY13

FY14

FY15

1H

FY16

FY20

E

$ Billions

Note: All growth rates and revenue amounts are as reported and include both Covidien and Medtronic.

Brady Wireless (CE)

LINQ (Japan)

RDN

iPro3 (EU)

CONTINUOUS INNOVATION WILL FUEL OUR LONG-TERM SUCCESS

FY17FY16 FY18 Beyond


Micra TPS (CE)

Evera MRI ICD

Resolute Onyx (US)

GastriSail

Visia AF MRI

CoreValve (Japan)

Capnostream35

Cervical Fixation System

Arctic Front

Advance (Japan)

Barrx 360 Express

MRI Safe CRT-D

Evolut R XL

DCB BTK

In-Stent Restenosis

Micra TPS (US / Japan)

CoreValve Evolut R (Japan)

Resolute Onyx (Japan)

Guardian Connect with Enlite 3 (US)

Sapiens

Valiant Evo (EU & US)

TAVRIntermediate

Risk

Pedicle Screw

System

Drug Filled Stent (EU)

Intellis RC

Intrepid TMVR

CardioInsight ecVUE

Pipeline Flex (US)

Robotics Platform

CRT-P Quad (EU)

Note: Timeline is illustrative of general launch timing.

Signia Powered Stapler

MiniMed 670G (US)

Medina Embolization

Endurant Evo (CE)

CoreValve Evolut R

GLOBALIZATION$ CONTRIBUTION

0.0

2.0

4.0

6.0

8.0

FY11

FY12

FY13

FY14

FY15

1H

FY16

FY20

E

$ Billions

~20%

~40%

~10%

~5%

~20%

~5%India

Greater China

Middle East & Africa

Latin America

ASEAN

Central & Eastern EU

TOTAL EMERGING MARKET SALES BY GEOGRAPHY (Q2 FY16) 1

1 Percentages calculated based on reported sales by geography.Note: All growth rates and revenue amounts are as reported and include both Covidien and Medtronic.

Private Partnerships

UNLOCKING THE EMERGING MARKET OPPORTUNITY


The penetration of existing therapies into emerging markets represents the single largest opportunity in MedTech.

STRATEGIC GROWTH DRIVERS

Channel Optimization 21

Traditional Market Development

Broader presence, facilities, more rapid expansion

Capital equipment provides base for therapies

Combined breadth enables broader partnerships

Education & Training Distribution Reach

EMERGING MARKETS PREMIUM: ATTRACTIVE OPPORTUNITY

Existing technology

Out-of-pocket payment or reimbursement established

Comparable margins to developed markets

$5B Annual

Opportunity

COVIDIEN ENHANCES REVENUE GROWTH

Public Partnerships3

GOING BEYOND TRADITIONAL MARKET DEVELOPMENT


CHANNEL OPTIMIZATION

Allows Medtronic to better serve customer needs through more direct relationships

Accelerates growth and captures margin: shared benefit for both the end customer and Medtronic

Strengthens systematic integrity and compliance

BENEFITS APPROACHES

OPPORTUNITY

Today, nearly $3B of MDT sales through over 7,000 distributors

Optimizing distributor relationships will result in an estimated $1.75B over the next 5 years

PARTNERSHIP MODEL CHANGE

DISTRIBUTOR TRANSITIONS

Consolidate and shift Roles and Responsibilities

Adjust distributor margins correspondingly

Distributors focus more on logistics and last-mile services

Q4 FY14: Formed Biostar JV with largest distributor; expanding to additional business units

TURKEY

Q1 FY16: Formed JV with largest distributor (Gulf Medical) for select business units

SAUDI ARABIA

CHINA & INDIA

GOING BEYOND TRADITIONAL MARKET DEVELOPMENT


PUBLIC PARTNERSHIPS PRIVATE PARTNERSHIPS

PUBLIC / PRIVATE PARTNERSHIPS

Abraaj purchases or builds hub hospitals surrounded by networks of clinics Russian government committed to increasing

Acute Coronary Syndrome (ACS) spend by ~4x

Sole supplier arrangement for coronary stents and balloons in Russia for 2017-2022

Estimated 800K-1M ACS patients 2017-2020

MDT majority partner in JV with private company

RUSSIA SOLE SOURCE SUPPLIER ABRAAJ STRATEGIC PARTNERSHIP

CHINA CHENGDU DIABETES & DIALYSISINDIA CLMS PARTNERSHIP

19 partnerships in place; 17 in India, 2 pilot programs in Southeast Asia

Targeted scope to enable infrastructure creation and market development with incremental device revenue opportunity

Focus on building access in Tier 2-3 cities with entrepreneur led and mid-market hospitals (KIMS)

Building pipeline in Southeast Asia and Australia

Long-term government partnership

MDT to locally manufacture dialysis system and next generation sensor augmented pumps

Cardiovascular disease is the leading cause of death in Russia

Commercial commitment and joint market access development

Referral chain and product supply expertise

Focused on Asia, Middle East & Africa, and other developing markets

Committed to improving patient access, healthcare delivery outcomes, and product supply

SERVICES & SOLUTIONS$ CONTRIBUTION

-

250

500

750

FY11

FY12

FY13

FY14

FY15

1H

FY16

FY20

E

$ Millions

Includes Care Management Services (Cardiocom), Cath Lab Managed Services, Operating Room Managed Services and Diabeter

Figures do not reflect related device revenue

Note: All growth rates and revenue amounts are as reported and include both Covidien and Medtronic.


SERVICES & SOLUTIONS: DIVERSIFYING BEYOND DEVICES TO DELIVER ECONOMIC VALUE

MedicalDevicesMedicalDevices

• Linked directly to a specific device or devices

• Helps to realize the full value of the device

Services & SolutionsServices & Solutions

Wrap-AroundPrograms

Wrap-AroundPrograms

Independent Health Solutions

Independent Health Solutions

• Core business• Proprietary

technology

• Not dependent on devices• Broader disease management

programs

Historical BusinessHistorical Business New OfferingsNew Offerings

Examples:ICD, Stent, Spinal Fixation System, Insulin Pump

Primary Customers:Physicians, Patients

Examples:CVG Solutions, Surgical Synergy, Diabetes Services & Solutions

Primary Customers:Hospital Department Administrators, Physicians

Examples:Care Management Services, Cath Lab Managed Services, Operating Room Managed Services, Diabeter

Primary Customers:Hospital Administrators, Payers, Governments

MedtronicIntegrated Health Solutions

Business Model Innovation

REIMBURSEMENT MODELS SHIFTING TO VALUE


FEE FOR SERVICE(e.g. DRGs)

PAY FORPERFORMANCE

INTEGRATED CARE/ BUNDLED PAYMENT

ACCOUNTABLE CARE/SHARED SAVINGS

CAPITATION/GLOBAL PAYMENT

Reimbursed for volume of services, not value

Fee for service at risk for bonuses/penalties based on performance measures

Single payment for all services provided for an episode of care

Capitated payment for some, but not all, services

Capitated payment for all services provided

“ACTIVITY” BASED PROCESS MEASURES

HIGHEST COST PATIENTS

BROADEN PATIENT POPULATION,

INCORPORATING BUNDLED PAYMENTS TO

ADDRESS HIGH COST, HIGH ACUITY PATIENTS

MEDTRONIC LEGACY BUSINESS MODEL

MEDTRONIC VALUE-BASED HEALTHCARE

FOCUS

STEPS TO VALUE-BASED HEALTHCARE


STEPS TO VALUE-BASED HEALTHCARE

SELECT ADISEASE OR CONDITION

DEVELOPPATIENT COHORTS BASED ON RISK AND PROTOCOLS

DEFINEOUTCOME MEASURESTHAT AREMEANINGFULFOR PATIENTS

DEFINETIMEFRAMEREQUIRED TO ACHIEVE OPTIMAL OUTCOME

QUANTIFYBASELINE OUTCOMES AND COSTS FOR EACH PATIENT COHORT

DETERMINEPROSPECTIVE PERFORMANCE AND COST OBJECTIVES –THE VALUE PROPOSITION

DEVELOPBUSINESS MODEL

IDENTIFY PATIENT COHORT

DEFINE AND BASELINE OUTCOMES

DEVELOP BUSINESS MODEL

1 2 3

Medtronic Shaping the Future of Healthcare

Critical to Medtech Innovation

New Partnerships and Business Models Based on Joint Accountability


FOCUSED ON DELIVERING STRONG, CONSISTENT LONG-TERM TOTAL SHAREHOLDER RETURN

MEDTRONIC FINANCIAL FORMULA

Double Digit Total Shareholder Return

26

1 As reported on a constant currency basis.2 Based on closing stock price on January 8, 2016.

Revenue Growth: Strong execution leading to above market performance

Operating Leverage: COV integration resulting in tangible and sustainable operating margin leverage at the high end of our baseline expectation

Capital Deployment: Disciplined capital deployment with a roadmap to increased accessible cash and dividend growth

$

Consistent mid-single digit growth

200-400bps of EPS Leverage

~200bps dividend yield today

1

1

2

NON-GAAP RECONCILIATION TABLES

NON-GAAP RECONCILIATION TABLE


















34TH ANNUAL J.P. MORGAN HEALTHCARE CONFERENCEdocshare04.docshare.tips/files/29590/295904288.pdf · Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Billions 34th

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