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8/15/2019 Medtronic RTG Investor Day Presentation
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Restorative Therapies Group RTG)
INVESTOR DAYJUNE 6, 2016
NEW YORK CITY
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Restorative Therapies Group RTG)
GEOFF MARTHAEVP & GROUP PRESIDENTRESTORATIVE THERAPIES GRO
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2016 Investor D
KEY GROWTH STRATEGIES
1. RTG will reinvigorate therapy innovation across all businesses throu
changes we have made in structure and talent
Our disease focused businesses will deliver meaningful innovation t
expanded emphasis across the patient care continuum and a consis
of new products
2. Our global footprint, breadth, and scale give us a fundamental adva
emerging market therapy penetration and market share
3. Value-Based Healthcare episode of care bundles create a unique op
business model innovation and entrance into new markets
THEMES FOR TODAY’S DISCUSSION
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Therapy Segment
FY17
WW Market
Size
FY16-21E
CAGR
Market Growth
FY16
MDT Share
/Trend
Core SpineBiologics
InFuseValue Orthopedics*
$7.5B
$0.8B
$0.5B
$1.1B
Low-Single
Mid-Teens
26%
31%
100%
13%*
Brain ModulationNeurosurgery
Stroke
$0.6B
$2.7B
$2.2B
Upper-Single
92%
38%
31%
Kyphoplasty & Ablation
Pain StimulationPain Pumps
$0.6B
$1.7B$0.3B
Mid-Single
55%
38%95%
Pelvic HealthENT
Advanced Energy
$0.7B
$1.2B
$0.4B
Mid -Single
Mid-Single
Low-Teens
85%
51%
84%
ATTRACTIVE MARKETS WITH INNOVATION HEADROOMSTRONG SHARE POSITION ACROSS THE PORTFOLIO
$20.3B Mid-SingleTotal RTG ~40%
$7.2Bbusiness
~50M patients~10% served
TODAY
~3%MarketGrowth Rate
*Market Share represents China only – business segment is Kanghui / ** based on comparable portfolio
FY11
~6%MarketGrowth RateFY16
5-6%MarketGrowth Rate
FY16- FY21
1) Constant currency, adjusted for the extra week in Q1.
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Restorative Therapies Group RTG) 2016 Investor D
EMPHASIZING EXECUTION TO DELIVER GROWTHUNLOCKING POTENTIAL
LeveragIntegrated PlatformsOrganized to Innovate
Leverage breadth
develop new servimprove outcome
Integrating our suite of surgical solutions
to drive improved clinical and economicoutcomes.
Seamless workflow creates an enhanced
surgical experience for physicians and
makes procedures more predictable.
Empowered GM’s prioritizing R&D
investment and delivering a predictable
cadence of new products.
Aligning businesses around disease states
and conditions.
Group-level leader driving R&D execution.
Integrated comm
value to administbroader stakehol
a
Group-level leaders driving collaboration.
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2016 Investor D
ORGANIZED TO CONSISTENTLY DELIVER INNOVATION THAT MATTEALIGNING STRUCTURE TO STRATEGY
FY 16
$7.2B
Brain PainSpine
Modulation
Neurovascular
Neurosurgery
Stimulation
Pump
Interventional
Biologics
Core Spine
Restorative Therapies Group
Enabling Functions (Operations, R&D, Quality, and
BULeader
G e n e r a l
M a n a g e r s
Integrated Global Sales Structure
Kanghui
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Restorative Therapies Group RTG) 2016 Investor D
PRESE
Sharing Direct Accountability forOutcomes
Market Development andLocalization
Deliver Steady Cadence ofInnovation that Matters
EXECUTING ON WINNING GROWTH STRATEGIESEMPHASIS FOR TODAY’S DISCUSSION
Therapy
Innovation
Economic
Value
Globalization
• Spine
• Brain
• Pain
•Spec
• Eme
• Value
PAN
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2016 Investor D
HEADWINDS ABATING, WHILE TAILWINDS EMERGING FROM FOCUSEFOUNDATION ESTABLISHED TO RESTORE GROWTH
FY11 FY12 FY13 FY14 FY15 FY16
(3.4%)
+2.4%
(5.8%)
(2.6%)
(0.5%)Flat
S
D
FY
C
Destabilization & Decline
MDT SpineRevenue Trend*
Headwinds
Tailwinds
*WW Core and Biologics (incl. INFUSE) VS PY: constant currency
InFuse & KyphonChallenges
Market GrowthChallenges
StabilizationRet
G
New
Product
Momentum
InFuseYale Study
Reinvigorated Product Development
InFuseSpine Journal
Publication
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2016 Investor D
SPINE MOMENTUM BUILDING: FY16 RECAP
+$60MFY16
~$25MFY16 vs FY15
As en
grow
head
of ne
deliv
INFUSE®
Bone Graft
REBOUND
PRODUCT
INNOVATIONAND SET
INVESTMENT
~3.0%FY16-21 CAGR
15-20% of
RevenueFY17-FY21
Infuse WW Revenue Trend as report in $M
+$30MSet Investment
FOUNDATION ESTABLISHED TO RESTORE GROWTH
1
2Biolo
shift
INFU
rebo
indic
794
468476
500515-525
G O
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2016 Investor D
FUTURE GROWTHPILLARS TO DELIVER GROWTH
SURGICAL SYNERGYTM
“SPEED-TO-SCALE”
Speed of Innovation Synchronized procedural launches Scale at Launch
StronSurgi
differ
Medt
exper
Accel
execu
produsoluti
1
2
“SPEED TO SCALE”
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2016 Investor D
“SPEED-TO-SCALE”INNOVATION, PREDICTABILITY, AND IMPACT
“SPEED TO SCALE”
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2016 Investor D
“SPEED-TO-SCALE”INNOVATION, PREDICTABILITY, AND IMPACT
Speed of Innovation
Concept to Commercialization
Execution
On-time & on-budget delivery
to majormilestones
Productivity
Drive 20%functionalproductivity
improvement
Quality
Maintain orEnhance
Product Quality
SpeedReduce
developmentcycle times
40-50%
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“SPEED TO SCALE”
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2016 Investor D
“SPEED-TO-SCALE”INNOVATION, PREDICTABILITY, AND IMPACT
Speed of Innovation
Concept to Commercialization
Synchronized Procedural Launches
All components of procedure must be in place to initiate launch.
Sat
Reduce time to s
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2016 Investor D
CASE STUDY: OLIF PROCEDURE LAUNCH (OBLIQUE LATERAL INTERBA PROCEDURAL LAUNCH REACHING SCALE QUICKLY
Procedure Benefits
Patient: Truly MIS (avoids disrupting nerve-filled psoas muscle)
Surgeon: Easier to access to more discs;more comfortable positioning (ergonomic) ;
less fluoro (radiation)
Economic: Neuromonitoring optional; noflip (and associated time) to access all lumbar
levels
OLIF Procedural Component Q4 FY16
Access System
Interbody
Fixation
Biologics
Enabling Technology
Surgeon Training
Rep Training
Clinical Evidence/EV
Compo
M e t a l
P r o f i c i e n c y
Synchronized Launch
PREDICTABLE CADENCE AROUND PROCEDURAL SOLUTIONS
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2016 Investor D
PREDICTABLE CADENCE AROUND PROCEDURAL SOLUTIONSINNOVATION, PREDICTABILITY, AND IMPACT
From launching
Products…..
….to launching
Procedures
Procedural Solution
SURGICAL SYNERGY: SPINE
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Restorative Therapies Group RTG) 2016 Investor D
SURGICAL SYNERGY: SPINECREATING A UNIQUE MEDTRONIC SURGICAL EXPERIENCE
FY 16 Business Imp
• Accounts with O-arms incre
24% in FY16
•
Nearly 1 in 4 procedures nav• O-Arm accounts grew 4X fas
• ~ 15 new deals securing mar
in Q4
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Restorative Therapies Group RTG)
BRAIN THERAPY INNOVATION
Deliver Steady Cadence ofInnovation that Matters
TherapyInnovation
MEDTRONIC BRAIN THERAPIES
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2016 Investor D
THE GLOBALLY RECOGNIZEDINNOVATOR
OF BRAIN DISEASE SOLUTIONS
~$2B business
#1 Global Market Share
TODAY
$3
#1 Glo
FVISION & ASPIRATIONMEDTRONIC BRAIN THERAPIES
ARRAY OF PLATFORMS TO ADVANCE SCIENCE
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Restorative Therapies Group RTG) 2016 Investor D
ARRAY OF PLATFORMS TO ADVANCE SCIENCETHE INDUSTRY’S BROADEST PORTFOLIO OF BRAIN THERAPIES
Neurovascular Modulation Neur
Enabling Technologies
Acute Ischemic Stroke
Hemorrhagic Stroke
Parkinson’s Disease
Essential TremorEpilepsy*
Brain Tum
Epilepsy*Hydrocep
Visualization, Navigation,
Laser Ablation, Powered Surgical & Robotics
Mid -Single
Growth
FY16-FY21
~$500MFY16 Revenue
Mid -Teens
Growth
FY16-FY21
~$600MFY16 Revenue
~$900MFY16 Revenue
*Current FDA status is approvable **Future indications
DELIVERING GROWTH IN THE BRAIN BUSINESS
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2016 Investor D2016 Investor D
THERAPY INNOVATIONTherapy Innovation
FY18FY17 FY1
Expanded MRI Labeling
Stealth Cranial 3.0
Olympus DBS
PC & RC+ Sensing
Le
Ref
DBS Extension-
Bootless, Seals
Stealth Midas
StrataMR
Stealth Connect
Cranial Robot
SureTune
DBS Planning
FY16
Barrel™
(US IDE)
Pipeline G
(Orac
Pipeline Gen#4(Maverick)
Axium Gen#2
(Fitz Roy)
Axium Gen#2 (Axium
Prime Detachable Coil
(Extra Soft))
Medina (
Medina (EU)
Artisse ™ Intrasaccular
Device (EU)
Solitaire Gen#3(Solitaire Platinum)
ARC ™
Support Catheter
UNO™
(US)
ARC ™ Catheter Gen# 2
Epilepsy PMA*
EARLY Onset PD
US Labeling
All products not approved, for pipeline illustration purposes only
Breadth and Depth Steady Cadence Advanced G
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PAIN THERAPIESOPIOID ADDICTION A GROWING EPIDEMIC
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2016 Investor D
OPIOID ADDICTION: A GROWING EPIDEMIC
* Projected growth from 2015 to 2025
Large market for pain
treatment options (US)
Annual Pain Market Growth*7%
~$7B
An Opportunity for Leadership• Fragmented patient care and protocols
• Provider, payor, and industry alliances on outcomes
• Public health crisis on opioid addiction
259 M
US prescriptions for
opioid pain
medication; enough
for 1 bottle for every
adult1
$
1.9MNumber of Americans
who suffer from
opioid abuse or
dependence1
1. http://www.asam.org/docs/default-source/advocacy/opioid-addiction-disease-facts-figures.pdf
2. http://khn.org/news/opioid-epidemic-fueling-hospitalizations-hospital-costs/
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MEDTRONIC PAIN THERAPIESADDRESSING THE OPIOID EPIDEMICSTRONG PRESENCE WITH SPECIALISTS
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2016 Investor D
MEDTRONIC PAIN THERAPIES
Perform 9 of 10
musculoskeletal pain
procedures.
75% are MDT
Customers.
STRONG PRESENCE WITH SPECIALISTS
PainSpecialists
Perform 9 of 10 cancer
pain procedures.
80% are MDT
Customers
InterventionalRadiologists
Neurosurg
Perform >
implants
SCS
>80%
Cus
MEDTRONIC AS THE GLOBAL LEADER IN TREATING PAINNEAR TERM PRIORITIES
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2016 Investor D
NEAR TERM PRIORITIES
TYRXInfection Control
MRI SafetyWithout CompromisedDevice Selection
• Smal
• Table
• Nove
Glob
AdaptiveStim®Right Dose to Right Location
Leverage MDT exclusives, unmatched c
and integrated sales stru
Return to Growth
SPINAL CORD STIMULATIO
Pump
Interventional
Ablation: Penetrate spine cancer
market and drive BKP pull through
Vertebral Augmentation:
Leverage new products and new
global markets
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SPECIALTY THERAPIES: PELVIC HEALTH, ENT, ADVANCED ENERGYATTRACTIVE GROWTH VERTICALS
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2016 Investor D
ATTRACTIVE GROWTH VERTICALS
AdvancExpanding A
Penetration
Joint & Spine
Oncology
Lead (Gen Repla
ENT & Neuro M a r k e t
P e n e t r a t i o n
P l a t f o r m
I n n
o v a t i o n
AEX™ Aq
Ear, Nose & Throat (ENT)
E x e c u t i o n &
E x p a n s i o
n
A d j a c e n t
O p p o r t u n i t i e s
Therapy Expansion
Hearing RestorationENT Office
Disease StateEmerging
Markets
Pelvic Health
NURO™ External Stim
Improving Access, Advancing MIS, and
Expanding Indications
C a r e
C o n t i n u u m
P e n e t r a t i o
n &
E x p a n s i o
nLeadership Position
in Pelvic Health
High SingleGrowth
FY16-FY21
>$500MGrowth
FY16-FY21
Consistently Positive
Patient Experience
RESTORATIVE THERAPIES GROUPPOSITIONED FOR GROWTH
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2016 Investor D
$6,042
$7,210
GROWTH D
Brain Therapies P
Innovation
Specialty Therap
Innovation and C
Expansion
Spine: Internatio
Emerging Market
POSITIONED FOR GROWTH
*Growth Rate @ Constant FX
~+4%CAGR*
FY16AFY11A FY21E
Mid-
Single
~$10B
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