INVESTOR DAY

JUN 5, 2018
NEW YORK CITY
HOOMAN HAKAMI
EVP AND GROUP PRESIDENT
DIABETES GROUP
FORWARD LOOKING STATEMENTS

This presentation contains forward-looking statements. 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. The methodology used to calculate such figures is explained in the footnotes to slides in this presentation where those
figures appear. This presentation contains financial metrics, such as dividend payout ratio, cash conversion ratio, free cash flow payout ratio and return on
invested capital, that are calculated using previously disclosed “non-GAAP” financial measures under applicable SEC rules and regulations. GAAP to non-
GAAP reconciliations of the relevant non-GAAP financial measure for a particular reporting period are available with previous earnings release materials
for such period, available at http://investorrelations.medtronic.com.

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 EPS projections exclude the impact of foreign currency fluctuations and other 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-looking
non-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.

2018 Investor Day | 3

DIABETES GROUP
KEY THEMES & WHY YOU SHOULD CARE

• Strong legacy & brand … highest share position in almost a decade

• In many ways, just getting started
• Above corporate average growth potential fueled by:
- Sensor pull-through & conversion of MDI in core pump BU
- Launch of stand-alone CGM targeting $1B+ category growing 30%
• Sustainability of growth driven by:
- High differentiation and profitability we’ve dramatically improved
- Innovation in decision support & patient engagement
- Outcomes focus – in products & go-to-market
2018 Investor Day | 4
DIABETES GROUP REVENUE
GROWTH IN A CHALLENGING YEAR
FY18 REVENUE A very challenging year
▪
US
▪ Internal & external pressures
FY18:
$2.1B
▪ Flat revenues in 1st half
Non-US
APV
EM Dev
Yet …
FY18 REVENUE GROWTH1
US: +7%
✓ Crossed $2B threshold for 1st time
Non-US Dev: +11%
EM: +12%
✓ Achieved record revenues
Diabetes: +9%

HSD growth driven by 28% growth

✓ Grew 9%
in CGM and full supply in second half

1.Growth Rates: Comparable Constant Currency

2018 Investor Day | 5
DIABETES STRUCTURE & OPERATING FRAMEWORK
REPOSITIONING THE BUSINESS FOR ABOVE CORPORATE AVERAGE GROWTH

Administrator
GROUP
Diabetes Group

Focus
Emerging Technologies
Disease / IPU
DIVISION

Focused
Advanced Insulin
Management (AIM) Multiple Daily Injection Non-Intensive Diabetes
Solutions (MDIS) Therapies (NDT)

Insulin pump therapy

Standalone CGM Professional CGM
systems
PRODUCT LINE

Diabetes mgmt.
Integrated CGM Injection port
programs & services

Consumables & Diabetes mgmt.

accessories programs & services

Diabetes mgmt.
programs & services

2018 Investor Day | 6

EXPANDING BEYOND A TYPE 1 PUMP COMPANY

DISEASE STATE TYPE 2 TYPE 1

REGIMEN DIET & EXERCISE ORALS BASAL PREMIX MDI PUMPS
PREVALENCE 60MM 110MM 20MM 15MM 20MM 1.1MM

2018 Investor Day | 7

EXPANDING BEYOND A TYPE 1 PUMP COMPANY

DISEASE STATE TYPE 2 TYPE 1

REGIMEN DIET & EXERCISE ORALS BASAL PREMIX MDI PUMPS
PREVALENCE 60MM 110MM 20MM 15MM 20MM 1.1MM

AIM
▪ Pumps & CGM
▪ ~70% global share
▪ 8% WW penetration

~$3.5B
category

2018 Investor Day | 8

EXPANDING BEYOND A TYPE 1 PUMP COMPANY

DISEASE STATE TYPE 2 TYPE 1

REGIMEN DIET & EXERCISE ORALS BASAL PREMIX MDI PUMPS
PREVALENCE 60MM 110MM 20MM 15MM 20MM 1.1MM

MDIS AIM
▪ Personal CGM ▪ Pumps & CGM
▪ <5% share ▪ ~70% global share
▪ ~20% penetrated ▪ 8% WW penetration

~$1B ~$3.5B
category category

2018 Investor Day | 9

EXPANDING BEYOND A TYPE 1 PUMP COMPANY

DISEASE STATE TYPE 2 TYPE 1

REGIMEN DIET & EXERCISE ORALS BASAL PREMIX MDI PUMPS
PREVALENCE 60MM 110MM 20MM 15MM 20MM 1.1MM

NDT MDIS AIM

▪ Diagnostic & intermittent CGM ▪ Personal CGM ▪ Pumps & CGM
▪ ~50% share ▪ <5% share ▪ ~70% global share
▪ <1% penetration ▪ ~20% penetrated ▪ 8% WW penetration

~$0.1B ~$1B ~$3.5B

category category category

2018 Investor Day | 10

EXPANDING BEYOND A TYPE 1 PUMP COMPANY

DISEASE STATE TYPE 2 TYPE 1

REGIMEN DIET & EXERCISE ORALS BASAL PREMIX MDI PUMPS
PREVALENCE 60MM 110MM 20MM 15MM 20MM 1.1MM

NDT MDIS AIM

▪ Diagnostic & intermittent CGM ▪ Personal CGM ▪ Pumps & CGM
▪ ~50% share ▪ <5% share ▪ ~70% global share
▪ <1% penetration ▪ ~20% penetrated ▪ 8% WW penetration

~$0.1B ~$1B ~$3.5B

category category category

Patient engagement solutions

Value-based offerings and contracting
Clinic offerings and patient management services

2018 Investor Day | 11

EXPANDING FROM PUMPS & SENSORS TO DIABETES MANAGEMENT

DISEASE STATE TYPE 2 TYPE 1

REGIMEN DIET & EXERCISE ORALS BASAL PREMIX MDI PUMPS
PREVALENCE 60MM 110MM 20MM 15MM 20MM 1.1MM

AIM
Core business

AIM
Advanced Insulin Management GOAL
▪ Pumps & CGM
▪ ~70% global share
▪ Patients Served: T1D & T2D on pumps Artificial Pancreas ▪ 8% penetrated
▪ Call point: Endocrinologists as standard of care
▪ Solutions: Insulin pump therapy,
consumables & accessories

2018 Investor Day | 12

REVOLUTIONARY MINIMED™ 670G FEATURING SMARTGUARD™

Outstanding performance since launch *

+10% 100K EMEA

US SHARE GAIN SYSTEMS SHIPPED LAUNCH IN FY19

Uncontested outcomes … 2.6M patient days

71%
TIME IN RANGE
0.3% 10.5%
TIME IN HYPO SENSOR MARD
MiniMed™ 67OG available in US only

* FY18 YOY, US IIM Pump/CGM 2018 Investor Day | 13

DISRUPTIVE CLOSED LOOP ECOSYSTEM

Launched Near Long GOALS

ALGORITHM

MM670G System Advanced HCL Personalized CL Limited patient

Outcomes Auto-correction bolus Advanced adaptation interaction
Peds indication >80% TIR goal >85% TIR goal
SENSOR

Guardian Sensor 3 Project Harmony Project Unity

Arm labeling Adaptive cals & Miniaturization, no cals, Wear & forget
9% MARD non-adjunctive 10-14 d wear , disposable
INSIGHTS USABILITY

CareLink SmartPhone App

Web-based Data viewing &
Project Duo Simple &
data mgmt. pump control
Integrated canula
& sensor
discreet
System Performance Virtual Support Proactive Triage
Report
Augmented assistance & Customer Service & HCP Differentiated
Data-guided system & AI guided optimization preventative mgmt Outcomes
behavior optimization

Note: future concepts; not investigational nor commercially available 2018 Investor Day | 14
AIM GROWTH DRIVERS

AIM Growth Drivers

CGM attachment from full system sale as installed base renews
Converting MDI patients to pump patients

CGM Attachment* MDI Conversions

~35% CGM attach % in installed base
~65% CGM attach % as patients renew
which drives
annual per patient revenue from ~$5K  $8K
Installed Base
~70% MDT share of pump patients
~8% Pump penetration of WW MDI patients
which adds
annual per patient revenue of ~$8K
New Patients

CGM
Attach CGM
% Attach
%

~1 out of 3 patients use CGM ~2 out of 3 patients use CGM

CGM drives growth opportunity & 670G can fuel

annuity $s as installed base converts conversion of MDI to Pumps
* US data 2018 Investor Day | 15
 COMPETITIVE LANDSCAPE 2018
73%
2012
67% 2013 2015 2017
2014
US Landscape & Pump Share* %

64% 64% 63%

62% 2016
59%

TANDEM

TANDEM
TANDEM TANDEM TANDEM TANDEM

asante asante asante TANDEM

TANDEM

Therapy Innovation
Low Cost Manufacturing @ Scale
Service & Support Infrastructure
Payer Relationships
Value-Based & Outcomes Contracting
Global Footprint
Large, Revenue Generating Installed Base
2018 Investor Day | 16
EXPANDING FROM PUMPS & SENSORS TO DIABETES MANAGEMENT

DISEASE STATE TYPE 2 TYPE 1

REGIMEN DIET & EXERCISE ORALS BASAL PREMIX MDI PUMPS
PREVALENCE 60MM 110MM 20MM 15MM 20MM 1.1MM

MDIS
Adjacent category
▪ Personal CGM

MDIS
Multiple Daily Injection Solutions
GOAL
▪ <5% share
▪ ~20% penetrated
▪ Patients Served:
Smart, connected
T1D & T2D on multiple daily injections solutions that
MDIS Solutions
▪ Call point: Insulin prescribing empower patients & ✓ Therapy Innovation
PCPs/GPs & Endos
help drive outcomes ✓ Decision Support
▪ Solutions:
Standalone CGM, injection port ✓ Patient Engagement

2018 Investor Day | 17

GUARDIANTM CONNECT WITH SUGAR.IQ
LAUNCHING THE MDIS BUSINESS

Expanding Access
▪ First stand-alone CGM launched
▪ 20MM MDI patients globally

Empowering Patients with Smarter Tools

▪ Predictive alerts + Sugar.IQ Insights
▪ No dedicated receiver … 12 month transmitter
▪ Arm indication … enhanced accuracy (9.1% MARD)

Designed to Help Improve Outcomes

▪ ↑↑ time in range
▪  hypo / hyperglycemia frequency

Prediction feature available in a future release

Data for presentation purposes only 2018 Investor Day | 18
PREDICTIVE TECHNOLOGY TO DRIVE DIFFERENTIATED OUTCOMES

Real-world European
CareLink data* for
Guardian Connect showed:

• Low events
averted 60% of the
time 1
• High events
averted 39% of the
time 2
when patients used
predictive alerts
1. Compared to 39% without alerts
2. Compared to 10% without alerts
* Data for presentation purposes only
2018 Investor Day | 19
 SUGAR.IQ DIABETES ASSISTANT
THE SMART CGM SOLUTION
Insights reveal hidden patterns at actionable moments
AI-Based Assistant
INSULIN FOOD
continually analyzes INSIGHTS INSIGHTS
multiple data sources
Time & Location

Glycemic Assist My Data tracks time

lets patients track in range and other
glucose response to key metrics
new foods and
routines

2018 Investor Day | 20

SUGAR.IQ DIABETES ASSISTANT
INSULIN INSIGHT
MOTIVATIONAL INSIGHT

2018 Investor Day | 21

SUGAR.IQ DIABETES ASSISTANT
FOOD INSIGHT

2018 Investor Day | 22

SUGAR.IQ DIABETES ASSISTANT
GLYCEMIC ASSIST

2018 Investor Day | 23

PATIENT ENGAGEMENT PROGRAM

Patient Engagement Program

▪ Earn Points for Time in Range
▪ More time = more points

Gamification to Encourage Health Outcomes

• Clinical and economic benefits for health systems
• Potential employer opportunity

2018 Investor Day | 24

BUILDING A COMPLETE ECOSYSTEM FOR MDI PATIENTS

Launched Near Long GOALS

Guardian Connect +
SENSOR

Project Harmony Project Unity Comfortable &

Guardian Sensor 3 Adaptive calibrations & Smaller, no cals,
Arm label, 9% MARD non-adjunctive 10-14d, disposable Reliable
360o DATA

Patient Logging Automated Capture Contextual

Multiple in-app tools Insulin dose capture + Fully automated based 360o
meals, activity, insulin advanced food logging on contextual signals Patient View
Glucose
INSIGHTS

Sugar.IQ (US) Prediction Therapy Guidance

Know. Predict.
Actionable AI-based 4 hour forecast AI-based meal and
glucose insights ~90% accuracy correction bolus Coach.
ECOSYSTEM

Physician Patient Care Plans

Web-based Interactive HCP+patient
Population Management Linked Ecosystem &
Population-level
data mgmt. for remote therapy
management tools
Optimized outcomes
optimization

Note: future concepts; not investigational nor commercially available 2018 Investor Day | 25
MDIS … A NEW SOURCE OF GROWTH FOR MEDTRONIC DIABETES

Standalone CGM penetration accelerating …

Medtronic well-
Today Tomorrow positioned to drive
growth
Differentiate with
Insights

$2B
CGM Coaching &
$1B
CGM
sales Patient support
sales
Help Improve
Outcomes
Rapid penetration MDT benefits from growing
Driven by Developed Markets CGM penetration

2018 Investor Day | 26

THERAPY INNOVATION PIPELINE
MEDTRONIC DIABETES GROUP

INVESTING FOR FUTURE GROWTH

LAUNCHED AND DRIVING
CURRENT GROWTH FY19 / FY20 BEYOND
Combination
Harmony set with
extended wear

AIM
Personalization
through AI &
MM670G Mio Advanced BLE Connectivity MM620G Auto Bolusing Cloud

Sugar.IQ Sugar.IQ Dosing

w/ Insights Assistant Improved
Sensors

MDIS
Sugar.IQ
Guardian Hypo Glucose
Connect Prediction Prediction

Medtronic Personalized
iPro Guidance

NDT
Medtronic
Intelligent Medtronic Envision
Therapy Real Time Real Time
Envision Pro Coaching
Recommendations

Note: investigational device only

Note: Future concepts; not investigational nor commercially available 2018 Investor Day | 27
OUR VALUE PROPOSITION ACROSS ALL BUSINESSES

Therapy Innovation Decision Support Patient Engagement VBHC Contracting

DIABETES GROUP
CONSISTENT, SUSTAINABLE, GROWTH ABOVE CORPORATE AVERAGE
CATEGORY MARKET
GROWTH DRIVERS SALES1 CAGR2

Closed Loop as Standard-of-Care ~$3.5B ~10%

THERAPY Increased CGM attachment rates;
INNOVATION
Drive MDI conversions; International expansion
CONSISTENT EXECUTION

Sustained Launched Stand-Alone CGM ~$1B ~26%

Growth Smart CGM system
GLOBALIZATION focused on outcomes
Above
Corporate
Average Expansion into Type 2 ~$0.1B ~70%
Increase diagnostic CGM
ECONOMIC glucose as a vital sign in the management of T2
VALUE

Globalization & Enterprise Excellence

Clinics & care management expansion globally
Leverage MDT Footprint for CGM & Customer Care
ENTERPRISE
EXCELLENCE

1. FY18 market estimates

2. FY17-FY22 growth estimates 2018 Investor Day | 29