Company Raises Revenue Growth Outlook
Highlights Deep and Broad Pipeline and Technology
Platforms
DUBLIN, Oct. 14, 2020 /PRNewswire/ -- Medtronic plc
(NYSE: MDT), the global leader in medical technology, will outline
today the company's strategy for driving accelerated revenue growth
and sustainable double-digit total shareholder returns at its
virtual 2020 Investor Day. This is the company's first Investor Day
since Chief Executive Officer Geoff
Martha assumed the role in April
2020.
At the virtual event, Martha and other members of Medtronic's
executive and senior management team will provide an in-depth
review of the company's growth agenda, which is underpinned by a
pipeline of innovative and disruptive products launching now and
over the coming years. Management will also discuss its
differentiated investment strategy to build on this momentum and
its new operating model, designed to create a more nimble,
customer-centric organization.
"We have found a new gear at Medtronic. We have an
industry-leading pipeline that is now coming to fruition and an
operating model that enables us to realize the full value of these
launches. We are energized and focused on winning share, and
accelerating our growth over both the near- and long-term," said
Martha. "Some of the greatest advances in medical technology are
unfolding right now at Medtronic. We look forward to sharing our
innovation-led growth agenda, which will create value for our
shareholders while staying true to our patient-centered
mission."
At today's event, Medtronic will outline its key drivers to
sustainably accelerate revenue growth at or above its
weighted average market growth rate (WAMGR). This strategy
includes:
- Going on the offensive and taking share. The combination
of a strong base business, recent product launches and a robust
pipeline is expected to accelerate growth over both the near- and
long-term. The company is leveraging the strength of its pipeline
to win share in an increasing number of its businesses with
new products, including Micra™ AV pacing system, Cobalt™ and Crome™
cardiac rhythm high power devices, Intellis™ with DTM™ spinal cord
stimulator, Percept™ PC deep brain stimulator, InterStim™ Micro
sacral neuromodulation system, Touch Surgery™ Enterprise, and the
MiniMed™ 780G system.
- Creating and disrupting big markets with significant growth
potential. Medtronic is bringing inventive and disruptive
technology to large healthcare opportunities with products such as
its soft tissue surgical robot, Micra™ line of leadless pacemakers,
extravascular ICD, pulse field ablation, PillCam™ Genius,
transcatheter mitral replacement and repair, and renal denervation
(RDN). These innovations to meet patient needs represent new
multi-billion dollar opportunities, further accelerating
Medtronic's growth. For example, Medtronic expects that RDN will be
a $1 billion market by 2026, with the
potential to be a $3 billion market
by the end of the decade. Today the company will announce that RDN
has been granted Green Channel priority review, which positions it
for potential approval in China
within a few months of an expected U.S. approval in calendar
2022.
- Putting the "tech" in medtech. Medtronic has a
differentiated R&D strategy that maximizes new technology,
artificial intelligence (AI), and data and analytics to deliver
innovations that address unmet clinical needs, produce better
patient outcomes, and create new standards of care.
- Investing in innovation and allocating capital to large and
promising growth opportunities—both organically and
inorganically. The company aims to increase its WAMGR by
deploying capital to faster-growing markets such as robotics,
ischemic stroke, diabetes, and neuromodulation. Medtronic is
boosting its level of investment in organic R&D to advance its
pipeline, increasing the cadence of tuck-in M&A, and allocating
capital in new and different ways, including creative partnerships.
Taken together, this strategy will significantly expand the level
of technological development across the company's portfolio and
ensure its pipeline remains full to accelerate growth and sustain
it into the future.
- Empowering its operating units to become more nimble and
more competitive. The company is implementing a new operating
model that will simplify the organization in order to accelerate
decision making, improve commercial execution, and more effectively
leverage the scale of the enterprise – facilitating its growth
objectives.
Long-Range Financial Plan
Medtronic will provide an
update on its long-range financial targets to reflect the company's
growth strategy and commitment to driving value. The updated
financial objectives include:
- 5%+ annual organic revenue growth, an increase from the prior
4%+ long-range target;
- 8%+ adjusted earnings per share compound annual growth rate
over the long range, assuming modest currency volatility;
- Greater than 80% cash conversion ratio, with a commitment to
return more than 50% of its free cash flow to shareholders;
and
- Dividend growth in-line with earnings growth.
The company expects its accelerated growth, significant free
cash flow generation, balance sheet strength, and disciplined
capital allocation strategy will drive strong double-digit total
shareholder return.
"We are well positioned to grow at or above our end markets and
deliver accelerated revenue growth," said Karen Parkhill, executive vice president and
chief financial officer of Medtronic. "Prioritizing investments in
innovation where we see the best opportunities, along with our
ongoing focus on driving productivity, will enable us to achieve
our long-range targets and generate strong shareholder value."
Webcast Information
Medtronic will host a webcast of
its virtual 2020 Investor Day today, Oct.
14, at 8:00 a.m. EDT
(7:00 a.m. CDT) to provide access to
all interested stakeholders. The webcast can be accessed by
clicking on the Investor Events link at
investorrelations.medtronic.com. Medtronic will be live tweeting
during the webcast on its Newsroom Twitter account, @Medtronic.
Within 24 hours of the webcast, a replay of the webcast will be
available by clicking on the Investor Events link at
investorrelations.medtronic.com.
About Medtronic
Medtronic plc (www.medtronic.com),
headquartered in Dublin, Ireland,
is among the world's largest medical technology, services and
solutions companies – alleviating pain, restoring health and
extending life for millions of people around the world. Medtronic
employs more than 90,000 people worldwide, serving physicians,
hospitals and patients in more than 150 countries. The company is
focused on collaborating with stakeholders around the world to take
healthcare Further, Together.
FORWARD LOOKING STATEMENTS
This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, which are subject
to risks and uncertainties, including risks related to competitive
factors, difficulties and delays inherent in the development,
regulatory approval, manufacturing, marketing and sale of medical
products, government regulation and general economic conditions,
and other risks and uncertainties described in the company's
periodic reports on file with the U.S. Securities and Exchange
Commission (SEC) including the most recent Annual Report on Form
10-K of the company, as filed with the SEC. In some cases, you can
identify these statements by forward-looking words, such as
"anticipate," "believe," "could," "estimate," "expect," "forecast,"
"intend," "looking ahead," "may," "plan," "possible," "potential,"
"project," "should," "will," and similar words or expressions, the
negative or plural of such words or expressions and other
comparable terminology. Actual future regulatory approval timelines
and financial results may differ materially from anticipated future
regulatory approval timelines and financial results. Medtronic does
not undertake to update its forward-looking statements or any of
the information contained in this press release, including to
reflect future events or circumstances.
Contacts:
|
|
Erika
Winkels
|
Ryan
Weispfenning
|
Public
Relations
|
Investor
Relations
|
+1-763-526-8478
|
+1-763-505-4626
|
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SOURCE Medtronic plc