Medtronic plc

Hello, everyone, and thank you for joining us today. Q2 was another good quarter for us as we executed and delivered mid-single-digit revenue growth. The underlying fundamentals of our business are strong, and our growth was broad-based across multiple businesses and geographies, with cardiovascular, neuroscience, and medical-surgical all growing mid-single digits and diabetes accelerating to high single-digit growth. Our new product launches are performing well and driving growth across many businesses. And we look ahead to the back half of our fiscal year. Those launches, combined with several recent regulatory approvals, give us confidence in our ability to continue delivering dependable growth. And at the same time, we're executing on our comprehensive transformation, including enhancing our global operations, quality, and supply chain. and we're decisively allocating capital into fast-growth medtech markets and fueling innovative technologies in areas like robotics, AI, and closed-loop systems that will drive our growth over the next decade. We're forging the path to durable growth as we execute on the actions needed to create long-term value for our shareholders. So now let's get into the details behind our Q2 results. We continue to look at our portfolio of businesses in three categories. Established market leader businesses, synergistic businesses, and highest growth businesses. Looking first at the established market leaders, we had very strong performances across cranial and spinal technologies, surgical, and cardiac rhythm management. Combined, they made up just under half of our revenue and grew 6% organic again this quarter. Starting with cranial and spinal technologies, continued adoption of our Able ecosystem is driving consistent above-market growth. In Q2, we grew 7%. Digitization is transforming the competitive landscape in spine, and we're leading the way with Able. With our global footprint of over 10,000 systems, over 10,000 systems. We're over four times greater than the nearest competitor. We are the first and only solution with integrated AI-based surgical planning with unit adaptive spine intelligence. Our Mazor robotic system is the first and only to offer bone cutting, a feature that was well received when we unveiled it at the North American Spine Society Conference in Los Angeles just last month. And we remain the clear leader in the intraoperative imaging and navigation space with our O-arm and stealth station technologies, both of which grew double digits in the quarter. As surgeons adopt ABLE and we continue to expand our sales teams and invest in future innovation, we expect to maintain our leadership and extend our share gains in spine. Now moving to surgical, we grew 6% here. There was broad-based strength across our surgical franchise. Hernia and electrosurgery both grew in the double digits on strong sales of our ProGrip and Dextile mesh and Valley Lab smoke evacuation systems. Advanced stapling and wound management both grew mid-single digits. Cardiac rhythm grew 4%. with high single-digit growth in cardiovascular diagnostics and cardiac pacing. In pacing, our Micra Leadless Pacemaker franchise grew 13%, driven by our U.S. launch of our next-generation Micra AV2 and VR2 devices. We're also seeing strong growth in conduction system pacing, an alternative to traditional single- or dual-chamber pacing. Our 3830 lead, the only approved lead for this novel form of pacing, grew strong double digits again this quarter. And late in the quarter, we received FDA approval for our Aurora EVICD system, a game changer for the single chamber ICD space. Now we're ramping up our training of implanting cardiologists on the Aurora technology. So Aurora delivers the benefits of a traditional ICD including similar size, longevity, and pacing features, but without the leads in the heart or veins. And these benefits can be realized with one device and only one implant procedure. And just to drive this point home on size, there's a big difference here versus the competitor's device. And I mean big. Here's an x-ray of an Aurora EVICD patient with the competitors right next to it just for comparison. So in addition to all the clinical benefits of our EVICD, you can see that it's meaningfully smaller and of course lighter than the competitors. And here's the model that we're giving our reps to explain the difference to customers. Now this is the size of the competitor's device. and we can actually pop out the Aurora to show how much smaller it actually is so so it's like a those nesting dolls except here I we just pop out we get start with big guy and we go right to the small guy so many pop this out so you see inside the model here's Aurora much smaller much lighter and speaking of weight We actually had to put a series of weights inside of here to get the bigger device to exactly replicate the weight of our competitors. So we're really excited about this as we've got a meaningfully better option for patients. Our advantages will not only displace the competitor's device, but will expand the population far beyond the existing savings. We think this can grow to become a billion-dollar-plus segment. Turning to our synergistic businesses, combined, they grew mid-single digits in Q2, and we had several standout performances. Aortic grew 9% on strong momentum in our Endurant AAA franchise following the 10-year real-world durability data presented at the Charring Cross Symposium earlier this year. Our coronary business grew 6% as we gained share in international markets on the continued rollout of our Onyx Frontier drug-eluting stent. Cardiac surgery grew 9%, driven by strength in perfusion and cannula, as well as the Nautilus ECMO oxygenator. Our endoscopy business grew 13%, driven by continued adoption of GI Genius. GI Genius uses the power of artificial intelligence to detect polyps in real time during a colonoscopy, integrating seamlessly into a GI doc's existing workflow. GI Genius results in a 50% reduction in missed polyps versus a standard colonoscopy, which plays an important role in the prevention of colon cancer. Turning to businesses in our highest growth markets, cardiac ablation solutions grew 6% on strong market procedural growth. Now, over the coming years, we expect this business to be a very meaningful growth driver for Medtronic. We are leading the way in bringing pulse field ablation catheters to market in both the focal and single shot segments.

Does saving over $350,000 in potential taxes sound good to you in retirement? I'm going to show you how quickly we can get that done. So this is the couple that came to see us, and they wanted to know, do I have enough? Can I retire? How do I pay less tax? After going through the situation, we hit the button. Turns out that they only have about a 65% probability of success. Our job is to get this number up way higher than 65% so we can get you retired. And most of the time that means overlaying a tax plan, creating a new income plan, changing how the investment portfolio is structured. And all of this together is what we call your retirement success plan. So when we look at the tax plan, if we continue down the conventional wisdom, it's an estimated $550,000 of taxes. But if we look at a recommended tax strategy to save that estimated $350,000, we get the taxes down to about 173 over the course of retirement. In addition to that, we have an estimated ending balance of about 2.5 versus 1.7. By implementing the tax plan, as well as adjusting when they plan on taking Social Security, as well as creating an actual income plan so they know when, where, and how much income to withdraw, as well as altering the portfolio to make sure the amount of risk in there and the expected growth is commensurate with their ability to stay in the markets. We do all that, and that's what we call the Retirement Success Plan. and that gets them up to a 99% probability of success. To get started with your very own customized retirement success plan, click the link in the description below to schedule a visit with one of our advisors that has a fiduciary responsibility to put your interests first.

Have you been keeping Rey's secret from the beginning? Did you know? No.