MEDTRONIC

DIABETES
GROUP
Hooman Hakami
EVP & Group President

December 12, 2016

New York City
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, product development and introduction, partnerships,
regulatory matters, 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 the filings we
make 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 contains revenue
growth rates on a constant currency basis, which are considered “non-GAAP” financial measures under applicable SEC rules
and regulations. We believe these non-GAAP measures provide a useful way to evaluate our underlying performance. Detail
concerning how all non-GAAP measures are calculated, including all GAAP to non-GAAP reconciliations, are included at the end
of this presentation.

Jefferies Diabetes Summit | 2

MEDTRONIC DIABETES GROUP
HOLISTIC DIABETES MANAGEMENT COMPANY

FY21
~$4B business
• Diabetes Mgmt. Focus
• Globally Balanced Revenue

TODAY •
•
20M Patients
Outcomes Company

~$2B
business
• T1 & Sensor Focus
• Primarily US Revenue
• 1M Patients
• Medical Device Company

Jefferies Diabetes Summit | 3

MEDTRONIC DIABETES GROUP
STRATEGY
MDT Growth Strategies Diabetes Group Strategy Strategic Imperatives
 Disruptive innovation
Drive Continuous
Therapy  Outcomes-based R&D
Innovation Product Innovation  Annual launch cadence

 Connected devices
Lead in Analytics
 Disease relevant data
& Insights  Actionable insights
Economic Value

 Chronic care management

Provide & Enable  Acute care services
Integrated Patient Care  Primary care solutions
Globalization
 Public/private partnerships
Expand & Accelerate  Localization
Global Access  VBHC models

Jefferies Diabetes Summit | 4

DRIVE CONTINUOUS
PRODUCT INNOVATION
 Disruptive innovation
 Outcomes-based R&D
 Annual launch cadence
HYBRID CLOSED LOOP SYSTEM
THE ADVANTAGE OF DOSING AUTOMATICITY
Journey Towards
Artificial Pancreas
Technology
 Advanced Algorithm
 Guardian 3 Sensor
 New Pump Platform
Investigational device only.
Data for presentation purposes only.
DESIGNED TO
 Suspend insulin delivery on predictive low glucose level
 Adjust basal insulin delivery in response to high glucose level
 24 hour dosing
POTENTIAL BENEFITS
 Reduce A1c
 Improve time in range
 Reduce patient burden
STATUS
 Approved by FDA: September 2016
 U.S. Initial product introduction: Spring 2017
 EMEA approval expected: Summer 2017
Jefferies Diabetes Summit | 6
 COMPETITIVE LANDSCAPE (As of December 5th, 2016)

Co. 1* Co.2* Co.3* Co.4* Co.5* Co.6*

PIVOTAL TRIAL TIMELINE
Q4-2016 Q1-2017 Q1/Q2-2017 Not Announced 2H-2016 1ST HALF 2018
Not started Pushed from prior Feasibility target No integrated CGM; G4 Not started Insulin only feasibility
end of 2016 Oct completion Feasibility started Dec completes Dec 2017
(still recruiting) completion
LAUNCH TIMELINE Competitive Estimates
Nov’17-May’18 End’17 End 2018 2019 TBD TBD

MDT would expect At least 1 year for PIVOTAL TRIAL.

launch about 2 To recruit large sample, across multiple centers, complete enrollment, start therapy, and
follow-up period for 6 months.
years* from pivotal
6 months statutory for PMA Submission.
start More complex submissions may lead closer to 12 months.
Based on MDT
MM670G experience At least 6 months for broad reimbursement.
Pre-existing relationship with payers will result in closer to 6 months.

* Source: Company earnings calls and other public sources (including, ClinicalTrials.gov)
SENSOR TECHNOLOGY INNOVATION
FY17 FY18 FY19 FY20 FY21

© Guardian 3* © Harmony 1** © Harmony 2** © Combo set**

11% MARD 10% MARD <10% MARD Harmony 1 sensor
7 day wear 10 day wear 30% reduced size 7 day infusion set
2 cals/day 1 cal/day Additional biometrics Single insertion

© iPro®3** © iPro®4** © iPro®5**

Single use Single use 7 day sensor
Masked Real-time Smaller size
~11% MARD ~11% MARD <10% MARD

BETTER, SMALLER, & EASIER … EVERY YEAR

The Bluetooth® word mark and logos are registered trademarks owned by Bluetooth SIG, Inc., and any use of such marks by Medtronic is under license.
Other trademarks and trade names are those of their respective owners.’
*Investigational device only Jefferies Diabetes Summit | 8
**Future concept only; not investigational nor commercially available.
CADENCE OF INNOVATION
2X MORE INNOVATION IN NEXT ~5 YEARS VERSUS LAST 15 YEARS

20 New Products
MiniMed® MiniMed® Advanced
640G 670G Harmony 1 Harmony 2 Closed Loop

Enhanced Duo Combo

Enlite® Guardian 3 Combo Set Set iPro®5
10 New Products
Patient-Use
Guardian® iPro®2
Real-Time MiniMed® Mio® CGM MiniMed® Guardian® New
SC2
CGM MiniMed® 530G Connect Connect Quick-serter® iPro®3
Infusion Set

Paradigm
Quick-set® MiniMed® iPro® REAL- Enlite® Extended
Infusion Set CareLink® Real-Time CGM Time Revel™ Sensor Mio® 30 Pro-set™ Solo iPro®4
Wear Set

FY00-04 FY05-09 FY10-14 FY15- FY20

FY15+ Includes conceptual applications or products that are not commercially available and Investigational devices.
Jefferies Diabetes Summit | 9
LEAD IN ANALYTICS
AND INSIGHTS
 Connected devices
 Disease relevant data
 Actionable insights
GUARDIAN CONNECT – TAKE THE GUESSWORK OUT
EXPANDING OUR SOLUTIONS TO PATIENTS ON INJECTIONS

Guardian 3 Sensor
11% MARD
7 day wear
Intelligent diagnostics

The first and only mobile CGM system with:

• Daily automatic uploads to your HCP
• Customizable SMS alerts for care partners
• One-year transmitter life

Jefferies Diabetes Summit | 11

ANALYTICS AND INSIGHTS
OPTIMIZE THERAPY & PROACTIVE PATIENT ENGAGEMENT & DISEASE MANAGEMENT
FY17 FY18 FY19 FY20 FY21
Pattern Snapshot myLog with Fitbit Outcomes Snapshot Patient Snapshot

Automated observations Electronic logging Population Health Personalized Care Plan

Clinical decision support Behavioral context Quality metrics & analytics proCGM + Biometrics

Hypo/Hyper‐ Glucose Therapy 

Prediction Prediction Dialogue

INNOVATION THAT IS EASY TO USE, AFFORDABLE & ACTIONABLE

Excluding Pattern Snapshot, Conceptual applications; not commercially available.
Data for presentation purposes only.
Represents current plans and objectives only and are subject to change.
Jefferies Diabetes Summit | 13
PROVIDE AND ENABLE
INTEGRATED PATIENT CARE
 Chronic care management
 Acute care services
 Primary care solutions
 ENABLING BETTER CARE
MEDTRONIC TURNING POINT WITH IBM WATSON
Key Issues Service Result
Uncontrolled Diabetes
leads to cardiac vascular
disease, renal failure,
Medtronic
Turning Point
52
Patients Enrolled
amputation and death

43% of diabetes dollars are

spent in-hospital 2
HbA1c reduction
25% of total cost are due to
delayed treatment & lack Integrated care program:
of adherence
*The Diabetes Control and Complications Trial Research Group. The
effect of intensive treatment of diabetes on the development and
progression of long-term complications in insulin-dependent diabetes
 Risk stratification
 Intelligent care pathways
70%
Program retention
mellitus. N Engl J Med. 1993;329(14):977-986.
**American Diabetes Association
 Remote health coaches
This data represents early observations from a small pilot program, and
***Medication Adherence: WHO Cares?
Marie T. Brown, Jennifer K. Bussell  Insights for providers is not statistically significant. Medtronic makes no claims regarding such
early observations.
Mayo Clin Proc. 2011 Apr; 86(4): 304–314. doi: 10.4065/mcp.2010.0575

Jefferies Diabetes Summit | 15

* Conceptual application; not commercially available.
Jefferies Diabetes Summit | 16
DIABETES GROUP
TRANSFORMING DIABETES CARE AND CHANGING REVENUE TRAJECTORY
From:
 T1 & Sensor Focus
 Primarily US Revenue
Mid-
Teens*  1M Patients
 Medical Device Company
+8%
CAGR*

To:
 Diabetes Mgmt. Focus
 Globally Balanced Revenue
 20M Patients
 Outcomes Company
FY11A FY16A FY21E

*Growth rate @ constant FX

Jefferies Diabetes Summit | 17
THANK YOU!
QUESTION & ANSWER SESSION
NON-GAAP RECONCILIATIONS

Jefferies Diabetes Summit | 19