INVESTOR DAY

JUNE 6, 2016
NEW YORK CITY

MIKE COYLE

EVP & GROUP PRESIDENT

CARDIAC AND VASCULAR
GROUP

FORWARD LOOKING STATEMENT

This presentation contains forward-looking statements which provide current expectations or forecasts, including those
relating to market and sales growth, growth strategies, financial results, use of free cash flow, product development and
introduction, partnerships, regulatory matters, restructuring initiatives, mergers/acquisitions/divestitures and related effects,
accounting estimates, financing activities, working capital adequacy, competitive strengths and sales efforts. They are based
on current assumptions and expectations that involve uncertainties or risks. These uncertainties and risks include, but are not
limited to, those described in our periodic reports on file with the U.S. Securities and Exchange Commission (SEC). Actual
results may differ materially from anticipated results. Forward-looking statements are made as of today's date, and we
undertake no duty to update them or any of the information contained in this presentation.
Financial Data
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 also contains nonGAAP financial measures such as free cash flow and historical revenue on a comparable constant currency basis, which sums
historical data of Medtronic and Covidien, aligns Covidiens prior year monthly revenue to Medtronics fiscal quarters and
adjusts for the impact of foreign currency translation. We believe these measures provide a useful way to evaluate our
underlying performance. Detail concerning how all non-GAAP measures are calculated, including all non-GAAP to GAAP
reconciliations, are posted to our website.

2016 Investor Day | 3

KEY TAKEAWAYS

THERAPY INNOVATION

ECONOMIC VALUE

CVG will sustain Therapy Innovation across all businesses driven

by the changes we have made in culture, structure, and
processes led by the most innovative talent in the industry
Our lead in developing Services and Solutions programs in the
form of CVG Solutions programs, CLMS, Diagnostic Services
and Patient Management Services is Significant and Growing
Multi-Line Contracting and VBHC Episode of Care Bundles will
create a share capture bias for our overall program

GLOBALIZATION

Our Global Footprint, Breadth and Scale give us a Fundamental

Advantage in driving emerging market therapy penetration and
market share
2016 Investor Day | 4

CVG GROUP STRUCTURE

CUSTOMER FOCUSED WHILE CAPITALIZING ON SIZE AND SCALE

CSH

APV

Operations, Quality, Clinical

Cardiac Rhythm & Heart

Failure (CRHF)

Coronary & Structural

Heart (CSH)

Aortic & Peripheral

Vascular (APV)

Heart Failure

Coronary and Renal

Denervation

Aortic

Brady

Heart Valve Therapies

Peripheral Vascular

Tachy

Extracorporeal
Therapies

endoVenous

+10%

CSH:

+9%

APV:

+10%

CVG:

+9%

Balanced growth across all businesses with

CC growth at the high end of our targeted
Mid-Single Digit growth range
Growth Rates: Constant Currency Growth at 53wks
Constant currency growth benefited by approximately
1.5 percentage points for extra week.

Therapy/Physician focused
General Managers

CRHF:

Cardiac & Vascular Group

Group

FY16:
$10.2B

Business
Unit

CRHF

AF Solutions
Diagnostics
Connected Care

2016 Investor Day | 5

CVG MARKET MOVING TO MORE RAPIDLY GROWING SEGMENTS

CARDIOVASCULAR MARKET GROWTH ESTIMATES
FY16 FY21 CAGR
MARKET COMPOSITION
25%

40%

50%

75%

60%

50%

CVG PORTFOLIO GROWTH

WAMGR*

CVG GROWTH

~ 2 - 3%

+1%

WAMGR

CVG

$40.0B
1.5

$32.3B
$26.4B
0.0
0.1
2.1
3.2
1.4
1.5
1.5

0.8
2.5
3.4
4.4
1.8
1.6
1.6

4.6
5.0
6.1
2.2
1.7
1.7

Diagnostics

14%

TCV

13%

CRHF AF

8%

Peripheral/eV

7%

Aortic

4%

ECT

1%

Surgical Valves

1%

Coronary

1%

6.2

6.2

6.5

3.2

3.3

3.5

HF / CRT

1%

3.4

3.2

3.4

Tachy

1%

3.8

3.5

3.7

Brady

1%

FY11

FY16

FY21

FY11
All Other
Market CAGR
~9%

Cardiovascular
Market CAGR
~4%
Implantables,
Coronary & Core
Structural Heart
Market CAGR
~1%

Weighted Average Market Growth Rate (WAMGR)*: Forward looking 5 year market projection.
CVG Growth shown is Constant Currency Growth at 53wks

+9%
~ 4 - 5%
FY16
WAMGR
2016 Investor Day | 6

CVG

CVGS EVOLVING CUSTOMER

Pre FY05

2005 - 2010

2010 - 2015

2015 & beyond

Future

Interventional Physician / Surgeons

+ Materials Manager
+ CardioVascular Line Administrator / Hospital C-Suite
+ Multi-specialty Clinical Practices / IPUs*
Increasingly Patients & Payers
*IPUs Integrated Practice Units

An increasingly complex therapy and brand decision making process

favors companies with breadth, scale and services capability
*IPUs: Integrated Practice Units

2016 Investor Day | 7

MEDTRONIC CORE STRATEGIES

Therapy
Innovation

Leading with Unrivaled Breadth, Scale and

Technology Innovation

Economic
Value

CVG Services and Solutions Optimize

Outcomes, Access, Costs and Efficiencies

Globalization

Driving Growth with Geographic Expansion

and Therapy Penetration

2016 Investor Day | 8

CVG STRATEGY

Micra
TPS
SEEQ
(SFA)

CardioInsight
VisiaTM AF / MRI
TYRX
AIGIS
Rx

Arctic Front Extravascular

ICD
Advance

Reveal
LINQ

Symplicity
Spyral
FFR / IVUS Catheter

(ISR/AVF)

IN.PACT Admiral
HawkOne 7F/6F
VenaSeal

Cath Lab Managed

Services

DrugFilled
Stent

Avalus
Valiant
Evolut
Mona LSA Valiant
PRO
TAAA Valiant Evo Intrepid

Diagnostic and Referral

Management Services

Enveo

Patient Management
Services
2016 Investor Day | 9

SUSTAINABLE THERAPY INNOVATION

Therapy
Innovation

Leading with Unrivaled Breadth, Scale and

Technology Innovation

Culture, Structure and Process Changes to Institutionalize Innovation in Product Development

CRHF

CSH

APV

2016 Investor Day | 10

DRIVERS OF IMPROVEMENT IN CVG PIPELINE PRODUCTIVITY

Focus and Accountability for Therapy Innovation at the GM Level
Disease/IPU
focused Business
Unit Leaders

Examples of
Integrated
Practice
Unit(s)

Peripheral Vascular
Disease

Coronary Artery
Disease

Heart Valve
Disease

Arrhythmia Management
Tachy, Brady, AF, SVT

General Cardiologist

General Cardiologist

General Cardiologist

General Cardiologist

Therapy/Physician
focused General
Managers
Vascular
Surgeon

Interventional Interventional
Cardiologist
Radiologist

Interventional
Cardiologist

Cardiothoracic
Surgeon

Cardiothoracic Interventional
Surgeon
Cardiologist

Electrophysiologist

Implanting
Cardiologist

Rigorous Prioritization to Balance Investment, Cadence, Risk and Overall Return

Transformative Innovation

Meaningful Iteration

Scalable Platform Development

Reveal LINQ ICM

MRI Safe Implantables

Orion (LP Platform)

Micra Pacemaker

AdaptivCRT
Algorithm

Polaris (HP Platform)

CoreValve TAVR
IN.PACT Admiral DCB
Drug Filled Stent

Evolut R and Evolut

PRO
Onyx DES

Sirius Programmer
Onyx
Evolut R /Enveo

Expanded Indications / Clinical Evidence

SURTAVI (High-Intermediate-Low
Risk)
Fire & ICE
Crystal AF for LINQ ICM
Tyrx WRAP-IT
IN.PACT ADMIRAL (ISR AVF BTK)

2016 Investor Day | 11

DFS

THERAPY INNOVATIONS
CONTINUED STRONG CADENCE OF MEANINGFUL GROWTH DRIVERS

DES
TM

TM

PRO

AzureTM
EU H2 FY17
ISR

AVF 8-12mm

3T MRITM
WW: Launching

Compia , Amplia & ClariaTM

WW: Launching

MRI
CRT-D
Leadless
Pacemaker
MRI
ICD

US: H1 FY18

EU H2 FY17 & US H1 FY18

US: H1 FY17 Sizes & Indications 150 mm

EU: FY19

Resolute Onyx

CoreValve Evolut R XL
Wireless
Pacer

TAVR
MRI DCB
Pacer

IN.PACT Admiral

Drug Filled Stents

Value Segments
3T

Claria

Visia AF MRITM
WW: Launching

Micra

EU & US: Launching

FY16

FY17

FY18
2016 Investor Day | 12

CRHF
MARKET OPPORTUNITY
MEDTRONIC CRHF REVENUE

GLOBAL CRHF MARKET ~$17B

18.0

10.0
Diagnostics

16.0

8.0

14.0

10.0
HF/CRT

8.0

$Billions

AF

12.0
$Billions

AF & Diagnostics

6.0

Implantables

4.0
6.0
Tachy
4.0

2.0

2.0

Brady

FY16

FY17

FY18

FY19

FY20

FY21

FY15

FY16

FY17E

FY21E

2016 Investor Day | 13

CRHF IMPLANTABLES
MEANINGFUL ITERATIONS AND SCALABLE PLATFORM DEVELOPMENT
LOW POWER

HIGH POWER

MRI (3T)

Evera MRITM ICD(3T)

Expanding legacy 1.5T MRI devices to 3T

Launch: EU & Japan H2 FY16 & US H1 FY17
Expanding MRI (1.5T & 3T) portfolio to
value segments
EU & US Launch H1 FY18

Expanding MRI Access: 1.5T and 3T

Improved image quality, improved diagnostics
and shorter MRI scans
Launch: EU & Japan H2 FY16 & US H1 FY17

CRT-P Quad
Portfolio of quadripolar and bipolar devices
Wireless Bluetooth telemetry with mobile
patient app
Vector ExpressTM Automated Test and
AdaptivCRTTM functionality
Launch: EU H2FY17 & US/Japan H1 FY18

MRI Safe CRT-D (3T)

Compatible with existing quadripolar leads
TM
TM
Compia /Amplia adds MRI functionality
Launch: EU /US Q4 FY16, Japan H1 FY17
(Compia) & H2 FY17 (Amplia)
TM
TM
Claria adds EffectivCRT Algorithm
Launch: EU Q4 FY16, US H2 FY17,
Japan H2 FY18
3T Launch for portfolio mid FY17

Visia AF MRITM
Single chamber ICD with capabilities to detect
Atrial Fibrillation
Adds LINQ functionality to VR ICDs
Launch: US H1 FY17 & Japan H2 FY17

Extending MRI Leadership to 3T and Value Tiers

NEW PLATFORMS
Low Power Bluetooth (Orion)
Lower product costs
Smartphone enabled Bluetooth monitoring
Patient engagement mobile app
Modular software architecture for faster
feature iteration
Launch: (Azure Pacemaker) EU H2 FY17,
US H1 FY18, Japan H2 FY18

High Power Bluetooth (Polaris)

Lower product costs
Bluetooth and patient mobile apps
Modular software architecture for faster
feature iteration
New, exclusive features for improved CRT
response and personalized therapies
Launch: EU & US FY19

2016 Investor Day | 14

CRHF LOW POWER: TRANSFORMATIVE INNOVATION

REDEFINING PACING WITH MICRA PACEMAKER AND ITS FUTURE DERIVATIVES
Micra VVIR Pacemaker
Worlds smallest pacemaker
Repositionable, tine-based fixation
Simpler, faster, safer and cost-effective
Approved for 1.5 & 3 T full-body MRI scans
First transcatheter pacemaker approved in
the U.S.
Addresses 15-20% of Brady patients in VR
segment
FDA Approved (April 2016), Japan H1 FY18

Micra
VVIR

AVB +
AF
16%

Micra VDDR / AAIR Pacemaker

Leverages Micra Platform Technologies
Novel proprietary technologies for crosschamber sensing
Expands leadless to AV Block and Sinus Node
Dysfunction patients
Potential for even greater complication
reductions compared to dual chamber rates
Enables us to reach ~90% of Brady patients

Micra
VVIR

Micra VDDR

Other
4%
AVB + AF
SND
16%
Only
30%

AVB
Only
40%

Beyond 2020:
Micra AAIR

Micra DDDR Pacemaker

Address All Patients
Staged implants will
change the prevailing
DDDR implant paradigm

Single Chamber:
VVIR= pacing and sensing the ventricle plus rate response feature
AAIR= pacing and sensing the Atrium plus rate response feature
Dual Chamber:
VDDR=dual chamber pacing and sensing the ventricle plus rate response feature
DDDR=dual chamber pacing plus rate response feature

2016 Investor Day | 15

CRHF HIGH POWER: TRANSFORMATIVE INNOVATION

EXTRAVASCULAR ICD ADDRESSES LIMITATIONS OF SUBQ
Limitations of conventional SubQ-ICD: Large & cumbersome, limited longevity
and no ATP or Brady Pacing
Solution: Extravascular ICD
Provide benefits of traditional ICDs with the potential advantage of lead
placement outside the heart and vasculature.
Designed to deliver defibrillation therapy and anti-tachycardia pacing (ATP)
System will consist of a device , a newly designed lead, and procedure tools
to guide the efficient delivery of the system.
Spec

Traditional ICD

EV-ICD

Conventional SubQ-ICD

Size

~30cc

~same size as TV-ICD

~ 2X size of TV-ICD

35J

40J

80J

Projected
Longevity

~11 years

~10 years
TV-ICD

~7 years

Features

Defibrillation
Post-Shock Pacing
ATP
Brady Pacing

Defibrillation
Post-Shock Pacing
ATP
Brady Pacing

Defibrillation
Post-Shock Pacing

Intravascular

Extravascular
(Substernal)

Subcutaneous
(on top of ribs)

Max Energy

Lead
Placement

2016 Investor Day | 16

CRHF: AF DIAGNOSTICS INFECTION CONTROL SERVICES

TRANSFORMATIVE INNOVATION, MEANINGFUL ITERATIONS AND CLINICAL EVIDENCE
AF SOLUTIONS

DIAGNOSTICS

INFECTION CONTROL

Arctic Front Advance

Reveal LINQTM ICM

TYRX

Cryoablation Balloon
Short tip for improved ability to measure
TTI with Achieve Advance Mapping
Catheter
Full Launch: EU & US H1FY18

Collects timely biometrics for 3 years

1 in 5 LINQs for Syncope result in a
pacemaker implant
Launch: Japan H1FY17

Anti-Infection Envelope

LINQ IITM ICM

FIRE & ICE Clinical
Results presented at ACC 2016
Primary efficacy and safety endpoints
met: cryoballoon PVI proven non-inferior
to point-by-point RF ablation, yet with
significantly shorter procedure times
Secondary endpoints on Rehospitalization and Repeat Ablation
Procedures accepted for Presentation at
CardioStim LBCT session - June 9

Size Equivalent + New Smartphone Interface

Bluetooth + New Sensors
Low cost from waferscale manufacturing
Launch: EU FY19

Remains Highly Underpenetrated

LINQ
Penetration
Syncope
Cryptogenic
Stroke
AF Ablation

US + WE Accessible Market*
FY16
FY20
FY16

36%

FY20

337,000
362,000

7%

FY20
FY16

324,000

24%

18%
7%
17%

391,000
109,000
116,000

Reduces implantable infections

by 75-100%
Incremental revenue per procedure
Cross Selling opportunities with Neuro
Stimulation & Spine

SERVICES
Reveal LINQTM ICM and
SEEQTM MCT System
SEEQ reimbursement for IDTF services
and LINQ technical fee reimbursement
for monitoring.
Heart Failure Patient Management tool
allows clinicians to manage patients with
implanted sensors, supporting patient
self management
Service revenues will be quantified in
Economic Value Section

2016 Investor Day | 17

CSH: STRUCTURAL HEART

MEANINGFUL ITERATIONS AND CLINICAL EVIDENCE
TAVR INDICATION EXPANSION

TAVR
CoreValve Evolut R
Repositionable/Recapturable
TruFit design & extended skirt for
optimal sealing
23/26/29 mm launched in FY16
34 mm: EU H2 FY17 & US H1 FY18

High /
Extreme Risk

Intermediate
Risk

Low Risk

Current U.S.
Indication

SURTAVI
Submit Q4
FY17

Low Risk
Enrollment
Started

SURTAVI Inclusion: 3% mortality risk at 30d

Low Risk: < 3% mortality risk. 1,200 patients
randomized against SAVR

SURGICAL VALVES
Avalus
Pericardial tissue valve launch
Interior mounted leaflets a proven
platform for durability
Flexible and durable sewing cuff designed
for ease of use and to reduce PVL
MRI Safe
Launch: EU H1 FY17, US H1 FY18 &
Japan H2 FY18

CoreValve Evolut PRO

Maintains proven benefit of a selfexpanding, supra-annular platform
Introduces additional external skirt sealing
technology designed to reduce mild PVL
Launch: EU & US H1 FY18

$Billions

GLOBAL TAVR MARKET ~$4B+

5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
-

Accelerating
Intermediate/Low Risk

High Risk

Extreme Risk
2015

2016

2017

2018

2019

2020

2021

2016 Investor Day | 18

CSH: TRANSFORMATIVE INNOVATION

TRANSCATHETER MITRAL VALVE REPLACEMENT

Intrepid
Differentiated dual stent design to accommodate a dynamic mitral
annulus
Sealing and fixation achieved through a cork-like effect produced
by variable stiffness along the height of the outer stent
Delivery requires no rotational alignment, no hunt for leaflets, &
accommodates tilt & lateral misalignment
One implant platform capability regardless of delivery approach:
trans-apical or trans-septal

GLOBAL MITRAL MARKET ~$4B

$4.0

$3.0

One valve size reduces development & manufacturing complexity

($ Billions)
US MitraClip FMR
US NG TMV Repair Technologies
EU TMV Replacement
EU NG TMV Repair Technologies

Pilot study currently enrolling patients in EU and ANZ

Expect to start enrollment in the US in Summer 2016

$2.0

Continue to evaluate both internal and external options for TMV

Repair space

$1.0

$-

Coapt trial 2 year data

TMV Repair
Surgical Market
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

2016 Investor Day | 19

CSH: CORONARY & RENAL DENERVATION

MEANINGFUL ITERATIONS AND GLOBAL EXPANSION
DRUG ELUTING STENTS

PORTFOLIO EXPANSION

Resolute Onyx

Fractional Flow Reserve

Drug-Eluting Stent

Most deliverable DES

Enhanced radiopacity with CoreWire Technology
+3.5% share in WE since launch*
Slowed ASP erosion
Launch: US H1 FY18 & Japan H2 FY18

Low profile FFR micro-catheter

Low cost capital component

Euphora Drug Coated Balloon

Drug coated balloon for coronary arteries built on the
proven Euphora platform

InTRAkit & TRAcelet

GLOBAL EXPANSION
STENTEX JV in Russia

Sole supplier access for ACS PCI

Localized manufacturing
$>700M cumulative Medtronic revenue thru FY21
Timing: H2 FY17

Radial access kit and closure band dedicated for radial PCI
procedures

Dxterity
Best-in-class diagnostic catheter for transradial and
transfemoral PCI procedures
Potential Contributors to VBHC Episode of Care Bundles in PCI
Launches: EU FY17 - FY20

* Excludes Germany

2016 Investor Day | 20

CSH: TRANSFORMATIVE INNOVATION

DRUG FILLED STENTS
Polymer-free DES
Absence of degrading polymer minimizes
inflammation
Increased potential for short-term DAPT
Drug is contained on the inside of the stent;
eliminates coating durability concerns during
tracking
Maintains excellent acute performance of Resolute
Onyx
1-month OCT data from the RevElution Trial
showed an excellent early healing profile with an
average of nearly 90 percent full strut coverage
Launch: EU FY19

RENAL DENERVATION
Symplicity Spyral
Renal Denervation System
1B people WW; Direct costs $500B WW
SPRINT Trial highlights huge unmet need
Enrolling SPYRAL HTN Global Clinical Trial Program:
ON-meds study
OFF-meds study
Results from these in 2017
Pivotal trial to be designed based on results from these
studies

2016 Investor Day | 21

APV: AORTIC

MEANINGFUL ITERATIONS TO EXPAND THE MARKET

THORACIC

SHORT NECK
Short neck indication for Endurant used with Aptus EndoAnchor
Minimize risk and maximize existing endograft indications
Addressing the ~30% of patients with necks shorter than current
indication
Launch: EU H2 FY17 & US H1 FY18

Valiant Evo
TAA Stent Graft System

Enhanced applicability
Increased patient customization
Lower profile
Launch: EU/US H2 FY18 & Japan FY19

COMPLEX AAA

COMPLEX TAA

Valiant Thoraco AAA

Valiant Mona LSA

Modular, off-the-shelf system for treating deadly

thoracoabdominal aneurysm
Non-specific branches for easier cannulation and anatomical
customization
Continuous distal perfusion allows for procedure to be staged, if
necessary
Launch: EU FY19

Branch Thoracic Stent Graft

Designed to maintain perfusion of the LSA with a single branch
device while excluding the aneurysm from blood flow
Avoid the need for LSA bypass procedures
Launch: EU H2 FY18, US & Japan FY20

2016 Investor Day | 22

APV: PERIPHERAL ENDOVENOUS

TRANSFORMATIVE INNOVATION AND MEANINGFUL ITERATIONS

DRUG COATED BALLOONS

NON-DCB

endoVENOUS

IN.PACT Admiral

HawkOne 7F / 6FTM

Highest patency and lowest TLR in any

SFA pivotal study
Launch: US 150mm H1FY17
Other Indications
In Stent Restenosis: US H1 FY17
AV Fistula: EU H2 FY16 (4-7mm) / EU H2
FY17 (8-12mm)
BTK: EU FY19

Next generation atherectomy systems;

7F - improvements in crossing profile,
calcium cutting and ease of use.
6F - improvements in calcium cutting
and ease of use. New multi-level
version.
Launched: (7F) US H2 FY15
Launch: (6F) US H2 FY17

VenaSeal
Closure System

GLOBAL DCB MARKET ~$1B

GLOBAL PERIPHERAL MARKET ~$4B+

(Includes DCB)

Venous Obstruction (Venous Stent)

DVT Treatment (Thrombolysis)

GLOBAL ENDOVENOUS MARKET ~$1.7B

WW BTK

0.4

WW AV Access

3.0

Peripheral

2.0

FY17

FY18

FY19

FY20

FY21

FY16

Deep

1.0
0.5

1.0
-

Superficial

1.5
$Billions

US SFA

$Billions

0.8

2.0

4.0

OUS SFA
$Billions

Expanding into Deep Venous

5.0

1.2

FY16

New Non-Thermal Superficial Venous

Reflux Procedure
Launched: US Q2 FY16

FY17

FY18

FY19

FY20

FY21

FY16

FY17

FY18

FY19

2016 Investor Day | 23

FY20

FY21

DFS

THERAPY INNOVATIONS
CONTINUED STRONG CADENCE OF MEANINGFUL GROWTH DRIVERS

DES
TM

TM

PRO

AzureTM
EU H2 FY17
ISR

AVF 8-12mm

3T MRITM
WW: Launching

Compia , Amplia & ClariaTM

WW: Launching

MRI
CRT-D
Leadless
Pacemaker
MRI
ICD

US: H1 FY18

EU H2 FY17 & US H1 FY18

US: H1 FY17 Sizes & Indications 150 mm

EU: FY19

Resolute Onyx

CoreValve Evolut R XL
Wireless
Pacer

TAVR
MRI DCB
Pacer

IN.PACT Admiral

Drug Filled Stents

Value Segments
3T

Claria

Visia AF MRITM
WW: Launching

Micra

EU & US: Launching

FY16

FY17

FY18
2016 Investor Day | 24

LINKING PRODUCTS AND SERVICES / SOLUTIONS

MULTI-LINE CONTRACTING

CORE SERVICES AND SOLUTIONS

Risk Share
(Adaptive
CRT /
Shockless)

Connected
Care

PRO | CV

Infection
Control
(TYRX)

CVG
Solutions

Care Mgmt
Svcs

Dare to Care

RBC

CVG Solutions Wrap

Around Programs
CathLab Managed Services
Patient Management
Services
(e.g. Care Management
Services)
Diagnostics Services
(e.g. LINQ/SEEQ)

SERVICE REVENUES

1.0

Diag / CVG
Solutions

$Billions

0.8
0.6

Patient Svcs

0.4
0.2

Increasing use of U.S. Multi-Line Contracts helping to

preserve share and mitigate ASP declines
35%

% of U.S. Revenue Generated

by Mult-Line Contracts

30%
25%
20%
15%
10%
5%
0%
FY13

FY14

FY15

CathLab

FY16

FY17

FY18

FY19

FY20

FY21

2016 Investor Day | 25

FY16

CARDIAC AND VASCULAR GROUP

CONSISTENT MSD GROWTH

GROWTH DRIVERS
Therapy Innovation driven by
Transformative Innovation and
Meaningful New Product
Iteration.(250-350 bps)

+5-6%
CAGR*
+6%
CAGR*

FY11A
*Growth Rate

Globalization will contribute

150-200bps through Emerging
Market growth.

FY16A

FY21E

Services and Solutions should

contribute 50-100bps of
Growth.

@ Constant FX, 52wks and are inclusive of Services & Solutions.

2016 Investor Day | 26