Further, Together 2015 Integrated Performance Report Table of CEO Letter……………………………………………………………………………………………………………………………………… 3 Contents Company Overview………………………………………………………………………………………………………………………… 5

Sustainability Risk and Opportunity………………………………………………………………………………………… 7

Value to Society………………………………………………………………………………………………………………………… 10

Access……………………………………………………………………………………………………………………………………… 11

Patient Safety……………………………………………………………………………………………………………………… 20

Financial Strength……………………………………………………………………………………………………………… 25

Community Investments……………………………………………………………………………………………………… 34

Working Responsibly………………………………………………………………………………………………………………… 40

Governance and Engagement…………………………………………………………………………………………… 41

Employees……………………………………………………………………………………………………………………………… 49

Environment………………………………………………………………………………………………………………………… 59

Supply Chain…………………………………………………………………………………………………………………………… 65

Awards and Recognition…………………………………………………………………………………………………… 68

FY15 Data Summary……………………………………………………………………………………………………………………… 69

About this Report……………………………………………………………………………………………………………………… 74

Global Reporting Initiative Index…………………………………………………………………………………………… 77

Cover Photo: Read Hina’s Story on page 11.

Medtronic 2015 INTEGRATED PERFORMANCE REPORt | Table of Contents 2 Since our early days as a company, the Medtronic Mission has remained the same: to alleviate pain, restore health, and extend life for people around the world. We have worked hard to be at the forefront of medical technology innovation, challenging ourselves to develop high-quality products and therapies that positively impact people’s lives. We have accomplished a lot – today more than 62 million people benefit from our technologies each year. This equates to improving the lives of two people every second of every day. We also recognize that we participate in global healthcare systems that face intense clinical and economic challenges. If not properly addressed, these issues can serve to undermine global growth and development and leave millions of people around the world untreated. No single entity in the healthcare system can solve these challenges alone. We’re committed to putting the full power of our technologies, resources, and our people to work with new partners, in new ways, to create a new era in healthcare. That’s a key reason we acquired Covidien — to expand our breadth to treat more people for more diseases, no matter where they are located, more efficiently than ever before. Our future promises even greater social impact. Due to the timing of this acquisition late in our fiscal year, however, the data in this report excludes Covidien’s operations, except where noted. We’re proud of the value we provided in FY2015 and look forward to contributing even more in the future by partnering with others to take healthcare Further, Together. CEO LETTER FY2015 HIGHLIGHTS n Our business achieved solid financial results in FY2015, achieving $20.3 billion in revenue and $2.7 billion net earnings — allowing us to advance our Mission and invest in transforming the industry.

n Research is at the heart of innovation. We invested $1.64 billion, or 8.1 percent of total sales, in R&D — including new ways of addressing health problems in emerging markets such as China and India.

n Our people are the key to transforming healthcare. We invested more than $47.6 million in employee training and development programs.

n To build greater healthcare capacity and access, we invested more than $108.8 million in training 50,000+ medical professionals around the world.

n we demonstrated our commitment to patient safety by exceeding regulatory requirements in our quality processes. Now we’re focused on combining the best practices of Covidien with Medtronic into a single system that delivers even greater quality assurance.

n We invested in our communities, targeting our philanthropic efforts where they can have the most impact. We donated 1.9 percent of our global pretax profits to charitable causes, and matched the generosity of our employees’ $25.2 million donations with nearly $20 million more to nonprofits of employees’ choosing.

n we continued to make good progress toward our ambitious 2020 Environmental Performance Goals, cutting carbon dioxide emissions and water use by 7 percent. Non-regulated waste decreased by 5 percent.

n We are also pleased that with Covidien joining the Medtronic family that now two patients per second benefit from Medtronic therapies. This is and has always been one of our most important metrics — how many lives we impact around the world. Our financial health is increasingly linked to our social commitments and environmental performance. We have a unique opportunity to extend our Mission as we integrate Covidien and leverage the leading practices from both companies. By continually challenging ourselves — to advance the limits of technology as well as our thinking — we can lead a transition to value-based healthcare and increase access to care around the world.

Omar Ishrak Chairman and Chief Executive Officer Medtronic 2015 INTEGRATED PERFORMANCE REPORt | CEO LETTER 3 FY2015 HIGHLIGHTS Data excludes Covidien except where noted. WORKING RESPONSIBLY BUSINESS GROWTH

NON-REGULATED $47.6 WASTE * MILLION INVESTED IN % EMPLOYEE TRAINING DOWN 5 AND DEVELOPMENT PER UNIT OF REVENUE FROM 2013

CO2 EMISSIONS AND ENERGY USE 29,410 * % EMPLOYEE $20.3 B DOWN 7 HOURS IN REVENUE PER UNIT OF REVENUE VOLUNTEERED THROUGH FROM 2013 PROJECT 6 * FY2015 based on Medtronic fiscal year as reported and reflects the one-quarter contribution of the Covidien transaction, which closed on January 26, 2015.

VALUE TO SOCIETY

8.1% $89.7 OF TOTAL SALES MILLION INVESTED IN RESEARCH IN PHILANTHROPIC GIVING AND DEVELOPMENT

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | FY2015 Financial Highlights 4 TOTAL SALES AND NET EARNINGS Company ($ millions)* Overview

Total Sales

Net Earnings Alleviate Pain. Restore Health. Extend Life. This is *FY2015 based on Medtronic fiscal year as reported and reflects the one-quarter our Mission at Medtronic. It’s contribution of the Covidien $15,508 $3,096 $16,184 $3,617 $16,590 $3,467 $17,005 $3,065 $20,261 $2,675 the reason we’ve developed transaction which closed on January 26, 2015. FY2011 FY2012 FY2013 FY2014 FY2015* an unprecedented breadth and depth of innovative therapies for more than 60 But we must do more. And we need to addressing those universal needs years. And it’s the reason ORGANIZATIONAL do it in partnership with others across (see Financial Strength for more PROFILE millions of lives are improved the industry to address these three information). by a Medtronic product or universal needs: The combination of Medtronic Our acquisition of Covidien on January and Covidien has created a therapy each year. n Improve outcomes for better care 26, 2015 marks a significant milestone, medical technology and services n Increase access to therapies so making us uniquely positioned to company with a comprehensive more people who can benefit from alleviate pain, restore health, and product portfolio, a diversified them are treated extend life for more patients around growth profile, and broad n Improve healthcare delivery to the world. Together as one company, geographic reach. Our four increase efficiency and reduce we remain committed to improving groups — Cardiac and Vascular, overall costs the lives of patients through ground- Minimally Invasive Therapies, breaking medical technologies and Restorative Therapies, and Our business strategy consist of innovative healthcare services and Diabetes — are committed to three strategic priorities — therapy solutions. Solutions that reach more improving the lives of people innovation, economic value creation, patients in more markets while through a wide range of medical and globalization — aimed at delivering value for our customers. technologies, services, and solutions.

Key Facts about the New Medtronic PLC Cardiac and Vascular Group * Number of employees 85,000+ Our Cardiac and Vascular Group Number of countries we operate in Approximately 160 (CVG) brings all Medtronic cardiac Research and development spend $1,640 m and vascular businesses together into one cross-functional, Number of patents 53,000+ collaborative operating unit. *With the acquisition of Covidien, we had 85,000 full-time equivalent employees at fiscal year-end. Not including Covidien employees, CVG provides innovative and Medtronic employed 46,638 people at the end of FY2015 (excluding temporary or contingent workers).

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Company Overview 5 pelvic region, and kidneys, as well as SCOPE OF THIS FY2015 TOTAL SALES BY BUSINESS UNIT obesity and preventable complications. ($ billions)* REPORT Total Sales $20,261 n Surgical Solutions This report covers Medtronic n Patient Monitoring and Recovery operations for the fiscal year Diabetes ended April 24, 2015 (FY2015). On Group Restorative Therapies Group January 26, 2015, we completed the acquisition of Covidien — The Restorative Therapies Group (RTG) $1,762 now operating primarily as the provides innovative, life-changing Minimally Invasive Therapies restorative therapies and services to Group, with its Peripheral meet the needs of millions of people Vascular business now a part of worldwide who suffer from a wide range CVG and Neurovascular business of chronic medical conditions. now a part of RTG. Due to the Restorative Therapies Cardiac and Vascular n timing of this acquisition late in Group Group Spine FY2015, the data in this report n Neuromodulation $6,751 $9,361 excludes Covidien’s operations, n Surgical Technologies except where otherwise noted. n Neurovascular Our 2016 report will be our first that covers our combined Minimally Diabetes Group company, Medtronic. Invasive Therapies The Medtronic Diabetes Group is the Group world leader in advanced diabetes $2,387 management solutions, including integrated diabetes management *FY2015 based on Medtronic fiscal year as reported and reflects the one-quarter systems, insulin pump therapy, contribution of the Covidien transaction which closed on January 26, 2015. continuous glucose monitoring systems, and therapy management software. The group also provides unrivaled, around-the-clock service and support to consumers and comprehensive solutions, Minimally Invasive Therapies healthcare professionals. including the industry’s broadest Group n Intensive Insulin Management portfolio of technologies as well as programs and services that The Minimally Invasive Therapies n diabetes Services and Solutions Group (MITG) aspires to enable earlier drive economic value across the n non-Intensive Diabetes Therapies care continuum. diagnoses, better treatments, faster complication-free recoveries, and n cardiac Rhythm and Heart enhanced patient outcomes using less Failure invasive solutions. MITG’s initial focus n coronary and Structural Heart areas include diseases and conditions of the gastrointestinal tract, lungs, n aortic and Peripheral Vascular

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Company Overview 6 n Potential partners collaborate with As we develop our sustainability Sustainability UNDERSTANDING corporations they trust to support OUR RISKS AND strategy incorporating Covidien, Risk and their social and environmental we will reflect these priorities in OPPORTUNITIES missions. our focus and resource allocation. Opportunity n thought leaders, including As a global leader in medical nongovernmental organizations technology, our business generates In addition to our five most (NGOs), academics, and the media, many significant social, environmental, significant opportunities, we provide new insights that help Sustainability isn’t just a nice and ethical benefits, but at the same identified eight other material enhance our reputation. opportunities of importance idea; it’s a core value for our time this can come with challenges. to Medtronic: trial data, business. One that reduces Information gathering is the first step to understanding how sustainability, in Materiality Assessment stakeholder engagement, device risks, creates opportunities, all its facets, relates to our business. security, philanthropy, post- brings efficiencies, and Based on our formal assessment of market surveillance, corporate stakeholders’ sustainability concerns, With this in mind, in FY2014 we governance, talent, and financial enhances our reputation. we identified the following as our most conducted an extensive review of strength. All of these important By making sustainability a significant sustainability opportunities: all sustainability topics relevant to areas are addressed in this report. central value at Medtronic, Medtronic. We invited input from 1. Access to Care: championing we add to the already positive internal and external stakeholders, the widest access to healthcare REDUCING RISKS societal impact of our and mapped the external priorities globally across various systems and products and operations. against our business imperatives. budgets. Our management and Understanding the perspectives 2. Product Quality: ensuring that our governance of sustainability of external stakeholders, including products and services unfailingly issues impacting our business is healthcare providers, policy makers, comply with the highest standards integral to our risk management and investors, holds us responsible to of safety and reliability. strategy. Our Enterprise Risk their needs. It is also a vital component 3. Ethics in Sales and Marketing: Management group participates to mitigating risk and running an leading our industry as trusted in our materiality assessment. In effective business, as supported by the partners who always act with our day-to-day operations, key following conclusions drawn from our integrity. sustainability issues are managed sustainability materiality assessment: within functional groups, 4. Responsible Sourcing: collaborating n rather than by a centralized Investors are attracted to a well- with our supply chain to develop team. Functional groups work managed business that anticipates long-term relationships that to control business risk by trends and manages emerging risks. enhance product quality, worker advancing corporate citizenship n healthcare customers seek a rights, and environmental and sustainability practices. business partner that helps them protection. These groups include: Business run their businesses efficiently, 5. Product Stewardship: minimizing Development and Strategy; aligns with their values, and the life cycle footprint of our Global Quality; Office of Ethics supports their sustainability goals. products and packaging through and Compliance; Sourcing; n government policy makers and design innovation. Human Resources; Environment, regulators give more weight to Health, and Safety; Medtronic the views of companies that are Philanthropy; Scientific, Clinical, recognized as sustainability leaders. and Regulatory.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Sustainability Risk and Opportunity 7 Integrated The table below outlines our main MANAGING BUSINESS n Emergency Response: actions sustainability risks and how we CONTINUITY AND RISK to ensure health and safety, Reporting at manage them. These risks are subsets protect physical structures, Medtronic of the risk factors described in our Through our Business Continuity and limit environmental periodic reports filed with the U. S. Management Program, we address impact. We believe that our Securities and Exchange Commission disruptions that could impact our n Crisis Management and integrated report provides (including Forms 10-K and 10-Q), which operations or supply chain. We work Mobilizations: coordination of a comprehensive overview readers of this integrated report are proactively, focusing on four key areas: our responses to crises. encouraged to review for additional of Medtronic. It reflects the n Business Continuity Planning: information concerning risks that may Our crisis management teams way that we do business, strategies to ensure that we can affect our business operations. We follow a protocol to effectively continue to operate and meet considering the social and cannot guarantee that even the most manage issues and synchronize demand. environmental factors exhaustive efforts will fully mitigate responses across the business. n IT Response and Recovery: plans and impacts. By working or prevent impact on our business The Corporate Crisis Team success. designed to respond to failures responsibly, we believe that provides regular updates to in technology and recover the the Executive Committee, we increase our ability to add infrastructure that supports ensuring that crisis strategies positive value to society. business continuity. and protocols are executed appropriately. For issues with Our Integrated Reporting Sustainability risk area How we manage risk potentially significant business Index on page 76 highlights impacts, the Medtronic Global Reputational damage from We walk the talk against corruption and Command Center responds, and some of the most important unethical behavior intentional misconduct. The Medtronic Office of our Corporate Crisis Filter Team ways that our business Ethics and Compliance trains every employee to determines the appropriate level success is tied to our social, comply with the letter and spirit of The Compass: of response. Our Code of Conduct for Living Out Our Mission. environmental, and ethical Employees receive other compliance training performance. that is relevant to their jobs. CREATING Failure to meet customer Our quality, access, and environmental programs OPPORTUNITIES sustainability requirements are designed to meet or exceed all customer product and service requirements. Our sustainability programs closely track our business Changing ethical, social, and Our public government affairs and environmental objectives, opening doors environmental regulations function groups track relevant regulations in to create new opportunities leading markets including the European Union, through sustainability leadership United States, and China. We engage with and innovation. Sustainability industry organizations and regulators to educate supports our efforts to improve them about our industry and to prepare for business efficiency, forge new emerging and pending regulation. business opportunities, deepen Increased costs from end of We anticipate that Medtronic will increasingly be relationships with existing product life obligations expected to exercise stewardship over the full customers, and respond to life cycle of its products and packaging, including investor requirements. end of product life solutions. Our R&D team is planning for this requirement.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Sustainability Risk and Opportunity 8 Driving Business Efficiency Meeting Customer Expectations Responding to Investor Requirements Our environmental efforts target Our healthcare customers have their reductions in our energy and own sustainability and citizenship Institutional investors recognize water use as well as the amount programs. As such, they seek business the significance of sustainability of waste we generate. These partners that align with their values performance as an indicator of goals have clear environmental and support their work. We strive to forward-looking management and benefits. They also reduce our remain their partner of choice so our proactive risk mitigation. Although the operating costs for energy, water, ethical and sustainability performance level of investor engagement, subjects and waste disposal. is an ever-important factor in customer of interest, and metrics requested relations. Business tenders now vary widely, our goal is to answer all Our 2020 targets — from a 2013 commonly include scrutiny of our questions from our investors and baseline — are: sustainability credentials. We aim to potential investors. We respond fully excel on these criteria. to the Dow Jones Sustainability Index n reduce energy use per unit of (DJSI) investor ranking and satisfy revenue by 15 percent. As we lead our industry’s transition criteria for inclusion in the FTSE4Good n reduce non-regulated waste to value-based healthcare, we Index. Medtronic has been a member per unit of revenue by 15 increasingly provide services within of the DJSI North American Index since percent. our customers’ hospitals. For example, 2008, a member of the DJSI World n reduce regulated waste per we already operate 50 catheterization Index 2011–2014, and a member of the unit of revenue by 10 percent. laboratories in European cities. This FTSE4Good Index since 2001. n reduce water use per unit of is a much more complex partnership revenue by 10 percent. than our traditional role as supplier of products, demanding an even higher Working toward these targets, level of responsibility, integrity, and Medtronic has achieved over $5 trustworthiness. million in savings to date with expected total savings in excess of $12 million projected over the seven-year goal period.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Sustainability Risk and Opportunity 9 Value to Society Access Further, Together Can You Hear Me Now? Seventeen-year-old Hina suffered pain from a chronic ear infection ever since perforating her eardrum at age nine. Like many others in her New Delhi, India, community, Hina never saw a doctor for her condition, and so it went undiagnosed, and untreated, for eight years. For more than 60 years, we’ve been driven by our Around the world, nearly 360 million people endure chronic ear infections and disabling hearing loss. The impact on sufferers’ educational and passion for healthcare economic achievement can be devastating. While medical treatment technologies that change can effectively treat these conditions, nine in 10 people affected live in Hina lives. Many have benefited emerging markets without adequate access to care. In India, the problem — and are alive today — due is particularly pervasive — 77 percent of the population who suffer from to our pioneering advances chronic ear infections also suffer some form of hearing impairment due to a lack of health education or limited access to ear, nose, and throat in medical technology. But (ENT) specialists. countless others can’t access our products and therapies Our groundbreaking Shruti program (meaning “to hear” in Hindi) bridges this gap by equipping community health workers in poor urban due to lack of funding or neighborhoods in India and Bangladesh with ear screening kits. Led by obstacles in their local Medtronic’s Surgical Technologies team and in partnership with 10 local healthcare systems. and international organizations, the project also trains community health workers in the basics of ear anatomy and hearing loss conditions. No company or organization Combining training with technology, Shruti also employs a mobile can solve the healthcare diagnostic tool from medical device developer Icarus Nova and a treatment access problem on its own. management smartphone app from ClickMedix, a U.S.-based telemedicine However, by combining company. These tools enable the community workers to quickly screen Medtronic’s inherent skills individuals, submit results to ENT doctors for review, and refer patients for treatment. and expertise with the knowledge and capacity of In 2014, Hina underwent a successful surgery through Shruti to local partners around the reconstruct her eardrum, and now sees a specialist for regular checkups. Successfully recovered, Hina is currently pursuing her college degree and world, we can maximize our loves dancing to Bollywood songs with her friends. ability to make healthcare — as well as our groundbreaking Now in its third year, Shruti operates at five sites in India and Bangladesh, including three that opened in FY2015. Shruti has screened nearly 115,000 technologies and therapies — patients. Of these, more than 43,000 have been referred to specialist care as accessible as possible. and 3,800 have undergone treatment with local healthcare providers.

We plan to expand the program through Southeast and South Asia and Sub-Saharan Africa. Our goal is to elicit a positive response from tens of thousands of patients to the life-changing query “can you hear me now?”

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Access 11 Noncommunicable diseases INNOVATIONS THAT Clinical Research Programs integrated insulin pump and are among the world’s greatest CHANGE LIVES glucose monitoring system Clinical research is an essential step in which automatically monitors health issues. At present, proving the effectiveness and safety We constantly look for meaningful and controls insulin delivery. of the new products, technologies, they account for 68 percent innovations that can improve access to The study covers more than and therapies we aim to introduce. We of all deaths worldwide — healthcare and meet unserved medical 80 subjects who received conduct clinical trials in accordance needs. Our goal is to invent products the new sensor, which is killing 38 million people a year. with our Clinical Trial Principles and all and therapies that treat conditions 80 percent smaller than Alarmingly, this toll is expected applicable regulations. See page 23 for more effectively and at lower costs, existing technologies on the 1 more information. to rise by 36 percent by 2030. expanding the reach of transformative market. It will also evaluate treatments. Beyond products and the safety of the new PLGM In FY2015 many of our clinical trials Reversing this trend, and therapies, we also generate clinical and algorithm as well as its ability advanced breakthrough innovations economic value by improving business to prevent hypoglycemia, improving the lives of those that demonstrate both clinical and models for healthcare delivery. which is a common occurrence living with chronic health economic value. Some highlights and concern in diabetes conditions, drives Medtronic include: management. Developing New Products and every day. n Cardiac Resynchronization n Therapies Deep Brain Stimulation Therapy: In August 2014, our Therapy: In February 2015, 1 World Health Organization, 2014. “Global Since 1949, Medtronic’s success has Cardiac Rhythm & Heart Failure Status Report on Noncommunicable the five-year results from the Diseases, 2014.” Available at: been driven by innovation in healthcare division launched a post-market Stimulation of the Anterior http://www.who.int/nmh/publications/ technology. Our people work clinical trial to compare patient and Nucleus of the Thalamus in ncd-status-report-2014/en/. relentlessly to develop new therapies healthcare system outcomes of Epilepsy (SANTE) trial were to address a wide range of chronic heart failure patients with cardiac published online by Neurology. diseases — including heart disease, resynchronization therapy (CRT) The SANTE trial is the largest diabetes, neurological diseases, spinal devices that have AdaptivCRT® clinical study of deep brain conditions, and vascular diseases. enabled versus those with the stimulation (DBS) therapy standard therapy. The AdaptivCRT for epilepsy in adults with In FY2015, Medtronic invested $1.64 system customizes therapy to treatment-resistant epilepsy. billion, or 8.1 percent of total sales, in patients’ individual needs and Medtronic is currently Research and Development (R&D). Our preserves normal heart rhythms. pursuing commercial approval R&D teams around the world work with The trial, which is the largest CRT for the therapy in the United healthcare providers, governmental trial to date, includes 3,000 patients States from the U.S. Food and organizations, and other partners to in 200 healthcare centers around the Drug Administration. identify needs and solutions. In addition world. n Transcatheter Aortic Valve to developing mainstream products n Predictive Low Glucose Replacement: In March and therapies, our local R&D teams in Management Technology: In 2015, the results of the emerging markets like China and India October 2014 our Diabetes group two-year High Risk Study of work on transformative solutions to announced the launch of a clinical the CoreValve U.S. Pivotal regional health problems. study of our Predictive Low Glucose Trial were announced at the Management (PLGM) technology, 2015 American College of Medtronic’s integration with Covidien which takes a critical step toward Cardiology conference. The brings additional R&D capabilities to development of an artificial study found significantly our business that will help us continue pancreas for diabetic patients. The lower mortality rates among to increase our ability to meet patient trial evaluates the safety of the patients receiving the needs across our markets. Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Access 12 Key Products and Therapies Receiving Regulatory Approval in FY2015

May n conformité Européene (CE) mark for the NC Euphora™ Noncompliant Balloon Dilatation Catheter. 2014

NC Euphora™

July n fda approval to market the PRESTIGE® LP Cervical Disc System for the treatment of single-level cervical disc disease 2014 (radiculopathy and/or myelopathy).

PRESTIGE® LP

August n Launch of the NuVent™ EM Sinus Dilation System for the Fusion®, the first balloon sinus dilation system with built-in 2014 electromagnetic surgical navigation technology to help surgeons confirm anatomy and optimize balloon placement during surgery. n fda approval for the Attain Performa® Model 4298 quadripolar lead that optimizes cardiac resynchronization therapy delivery through greater options to maintain lead positioning. NuVent™ EM n fda approval of the Viva® Quad XT and Viva® Quad S cardiac resynch.

September n ce Mark for the 23 mm CoreValve® Evolut™ R System for transcatheter aortic valve implantation (TAVI). 2014 n ce Mark for the TYRX™ Absorbable Antibacterial Envelope, an innovative mesh envelope which covers an implantable cardiac device to help stabilize the device after implantation and reduce surgical-site infections.

TYRX™ Absorbable Envelope

October n fda approval of CapSureFix Novus™ MRI SureScan® 5076 Lead for use with magnetic resonance imaging (MRI). 2014 The lead is approved for MRI scans positioned on any region of the body when paired with a Medtronic dual-chamber MR-conditional pacemaker.

CapSureFix Novus™ Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Access 13 Key Products and Therapies Receiving Regulatory Approval in FY2015

November n ce Mark for the Resolute Onyx™ Drug-Eluting Stent (DES), which treats coronary artery disease. The stent features 2014 CoreWire Technology that enables increased visibility and improved deliverability during procedures. n Japanese regulatory approval for the Evera MRI™ SureScan® implantable cardioverter-defibrillator system for magnetic resonance imaging scans positioned on any region of the body.

Evera MRI™ SureScan®

December n fda approval of the Medtronic IN.PACT Admiral drug-coated balloon, used to reopen blocked or narrow arteries in the 2014 upper leg due to peripheral artery disease (PAD). n fda approval of two additional Attain Performa® left ventricular quadripolar leads — Attain Performa® Model 4298 quadripolar lead, and the Viva® Quad XT and Viva® Quad S cardiac resynchronization therapy defibrillators (CRT-D). These can be paired with the Medtronic Viva® Quad XT and Viva® Quad S cardiac resynchronization therapy defibrillators (CRT-D) Attain Performa® to treat heart failure. Quadripolar Lead

February n fda approval for the VenaSeal™ closure system. This minimally invasive procedure uses a specially formulated medical 2015 adhesive to close lower superficial extremities such as the great saphenous vein in patients with symptomatic venous reflux. n fda clearance for Endo GIA™ Reinforced Reload with Tri-Staple™ technology. n FDA approval of the Pipeline™ Flex Embolization Device, designed to divert blood flow away from aneurysms and provide Pipeline™ Flex greater accuracy and control during treatment procedures.

March n fda approval of the CoreValve® System for valve-in-valve procedures in patients whose surgical aortic heart valves have 2015 failed. The CoreValve System is the first transcatheter heart valve approved in the U.S. for such procedures in both high and extreme risk patients who have limited options or may otherwise go untreated.

CoreValve® System

April n ce Mark for the Micra® Transcatheter Pacing System (TPS), the world’s smallest pacemaker. 2015

Micra® Transcatheter Pacing System Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Access 14 Transcatheter Aortic Valve to operate their facilities, improving In April 2015, we completed our Our systemwide, value- Replacements compared efficiency and maintaining high-quality acquisition of Diabeter, a Netherlands- based approach begins with with Surgical Aortic Valve care. The program’s initial focus is based diabetes clinic and research Replacement in patients with on cardiac care, and the efficiency center. The center provides the question: What are the high risk for surgery. and effectiveness of catheterization comprehensive diabetes care for more barriers to care for people n Minimally Invasive Colectomy laboratory facilities. Early results are than 1,500 children and young adults suffering from the diseases Procedures: In March 2015, promising. In our first venture with with diabetes, and is Medtronic’s first that we have the expertise Imperial College in London, Medtronic foray into integrated care services the journal JAMA Surgery and experience to overcome? published clinical findings Hospital Solutions realized $1.5 million for diabetes. Our Diabetes Services & suggesting that minimally in cost savings over nine months Solutions division intends to expand invasive, laparoscopic through improved efficiencies, while the Diabeter model across Europe. colectomy procedures can increasing the number of procedures significantly lower healthcare conducted by over 30 percent. Hospital Telehealth services can improve costs, reduce recovery times, Solutions represents a large, long- healthcare access for patients, and lower complication risk term growth potential for Medtronic. especially after they return home from compared with open surgery In FY2015, we signed partnerships with the hospital. Our Cardiocom business procedures. The findings 50 hospitals to manage catheterization offers integrated clinical telehealth address procedures usually labs, which will generate $1.5 billion services for monitoring patients performed to treat digestive in revenue over the next five to seven after medical procedures which helps health conditions including years. prevent rehospitalization in heart diverticulitis, Crohn’s disease, failure patients. Both patients and ulcerative colitis, and cancer of In Hyderabad, India, a Hospital hospitals benefit from better long- the colon and rectum. Solutions partnership with CARE term health outcomes and reduced Hospitals will set up heart failure clinics readmission rates. Solving Market Challenges to provide integrated care to diagnose, treat, and manage congestive heart New products, technologies, failure. In India, congestive heart failure BREAKTHROUGH and therapies cannot transform presents, on average, a decade earlier lives and bring healthcare to SOLUTIONS FOR ACCESS for patients than in Western countries. more people without effective TO CARE The new clinics will focus on enhanced and efficient healthcare delivery therapy delivery and management of Our vision is a world where all people systems. With the rising costs of heart failure, and improving outcomes who could benefit from our solutions healthcare threatening efforts by bringing patients closer to the have access to them. We consider to increase access, Medtronic cardiologists. local conditions and develop disruptive invests heavily in exploring solutions — from financing and health new business models that help In FY2015 we also piloted an expansion worker training to diagnostic testing overcome systemic challenges of our managed service offerings to and product design. In this way we impacting the cost and quality of operating room (OR) management. target the systemic problems on the care. Building on experience gained in ground that prevent people from catheterization lab management and getting the care they need. We bring our expertise to new the OR technology expertise of our models for managed services. In Minimally Invasive Therapies Group, FY2014, we launched Medtronic we are well positioned to provide full- Hospital Solutions, a business service OR management to hospitals. unit that partners with hospitals

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Access 15 “The Global Health Patient Access world. The Medtronic Global Health Community Health Access and Acceleration Initiative supports the development Global Health Access — provide Initiative’s charge is to of programs and initiatives that target grants to support healthcare develop new business Our Patient Access Acceleration (PAA) social impact and unmet healthcare for medically underserved models and end-to- program supports data analysis to needs. We work closely with employees communities around the world. bring our products and therapies to across business units to bring new ideas We also made product donations end solutions that are more patients who can benefit from for product and service innovations worth over $11.5 million and financially sustainable them by: to market and test new ways to treat participate in the Partnership for and scalable over time. 1. Quantifying the business diseases and their root causes. Quality Medical Donations. This We are focused on the opportunities and potential impacts international alliance of private of a therapy or product. Pending pilot business solutions that and nonprofit organizations diseases where we have 2. Identifying and understanding align our expertise with local needs in brings quality healthcare the most expertise, and barriers to accessing specific emerging markets include: to underserved patients by engaging local communities. therapies or products. n Colombia: Incontinence affects are intentionally agnostic Members and partners support between 15 and 30 percent of the about our technologies 3. allocating resources to programs research and educational forums population and sufferers are often and initiatives that can overcome that contribute to improved so that we can leverage ostracized due to social stigma these barriers. guidance on medical donations, surrounding the condition. Existing our global employee and provide product and cash treatment options are expensive base to think, design, and PAA helps us evaluate and manage donations as well as volunteer, and we are exploring physical market opportunities in ways training, and other services develop in new ways.” therapy alternatives better adapted that increase access and deliver that support disaster relief and to local needs. Dr. Daniel Grossman, Senior Director, better patient outcomes for more improved access to care. Global Health Innovation people. Our expertise also helps n Ghana: Hypertension is a local healthcare providers focus widespread problem, but products See Community Investments their own developments toward and therapies to treat it are for more information about our critical market needs. With this in underutilized in the country, due to a philanthropic efforts in FY2015. mind, we are developing consulting lack of cardiologists. services — Patient Access Solutions n Mexico: Type 2 diabetes is (PAS) — to bring our PAA process to Leveraging Global very common among Mexican Partnerships hospitals around the world. In FY2015, populations. New services and we completed 12 PAS consulting capabilities at local health clinics No single company or engagements. We also filed for two may be able to treat patients who organization can solve the global patents related to our PAA and PAS don’t have access to larger hospitals. access to care challenge. By process and methodology. leveraging our skills and expertise Expanding Access through with the knowledge and capacity Improving Health for the Philanthropy of expert local partners, we can Underserved scale our impact and connect In addition to our Global Health more patients with the care they We encourage our talented and Initiative work, we directed more need. dedicated employees to come up than $10 million in philanthropic with “out-of-the-box” thinking on dollars toward access initiatives in healthcare breakthroughs, applying FY2015. Our two hallmark programs — passion, knowledge, and ingenuity to healthcare challenges around the

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Access 16 Further, Together Expanding diabetes care for Youth in Kazakhstan The future looks brighter for children with type 1 diabetes across Kazakhstan. Historically, diabetes care has been underfunded in the country, with vast regional differences in access to and quality of care. In FY2015, Medtronic completed an innovative partnership, Project Baiterek, with the Kazakhstan government, local thought leaders, and patient advocacy groups to improve health outcomes for children suffering from the disease. The program focused on access to therapy, local capacity building, and infrastructure development.

In a pilot program that focused on treatment for youth ages 5 to 15, use of insulin pump therapy increased from 2 percent to more than 50 percent. The study demonstrated that the therapy is cost effective, and increases both life expectancy and quality of life, while enabling children to stay in school. The program also provided world-class training to 266 healthcare professionals.

The outcomes were also good for Medtronic, as Project Baiterek has generated significant revenue growth in the region since FY2011. The Project Baiterek team received a Star of Excellence Award, which recognizes Medtronic employees for their unwavering commitment to high quality and excellence in products, processes, services, and business models that bring our innovations to market.

Based on the positive experience of all parties involved, Project Baiterek has expanded from the pilot phase to include all children in Kazakhstan with diabetes.

In FY2015, highlights of our work market in the region, where about Partnership for Innovative n Healthy Heart for All (HHFA), with partners included: 10 percent of adults are affected Healthcare Delivery). We partner India: Working with local by chronic kidney disease. The with other innovators within this hospitals, we created the n Apollo Hospitals, India: Since development of this new therapy unique network to co-develop HHFA program in 2011. This October 2013, we have worked is supported by expanded R&D in programs, find new avenues to program increases patient with Apollo Hospitals, the India and a Medtronic hemodialysis scale existing programs, and share access to cardiac therapies by largest healthcare provider in manufacturing plant in Chengdu, lessons learned from best-practice providing financing options, India, to address end-stage China, which opened in FY2015. models around the world. One major health hotlines, patient renal disease for patients collaboration to date is our Shruti counselors, heart screenings, who need renal replacement n Innovations in Healthcare: As a initiative in Asia. and other outreach activities. therapy. The goal is to bring founding member, we continue to In FY2014, the program an affordable and portable work with Innovations in Healthcare expanded to the Philippines. hemodialysis system to (formerly the International

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Access 17 n United Arab Emirates: In FY2015, Now offered through 120 programs reached 50,796 healthcare we launched the Medtronic hospitals in 28 cities, HHFA has professionals in FY2015, including Economic Academy with the University of provided cardiac screenings surgeons and specialists. Examples Sharjah in Dubai. The program Value to more than 46,800 people include: provides cardiac care and product and treatment to more than Creation n Bangladesh: We operate a dedicated training to physicians from around 12,000 from 2011 through health worker training center at our the region, in both laboratory and April 2015. Bangladesh office, working with the classroom settings. In the program’s n Johns Hopkins Center for National Institute of Cardiovascular first six months, 168 medical Strategy Bioengineering Innovation Diseases (NICVD) to provide professionals received training, and Prioritize and and Design (CBID): Each training and infrastructure for more than 20 courses are planned year, Medtronic engineers catheterization labs that diagnose for FY2016. develop based on and scientists partner with heart conditions. We held three Economic Value Biomedical Engineering trainings at our center during master’s degree students FY2015 and conducted two more at BETTER PATIENT from Johns Hopkins University NICVD. OUTCOMES PROVIDE in Maryland to explore new Evidence n China: Our Medtronic Patient solutions to increase access BETTER VALUE Care Center in Beijing and our Generate clinical to pacemakers in emerging hospital-based patient care centers We have an imperative to find solutions markets. Most recently, and economic in 31 additional hospitals train that both improve patient outcomes the teams have focused on physicians, patients, and their family and reduce cost. We work consistently proof points pacemaker adoption and members on available treatments with our stakeholders to champion utilization across geographies and therapies for common value-based healthcare models that and healthcare systems in chronic diseases. In FY2015, the deliver cost savings for the healthcare India, and developed programs Beijing center offered six medical systems and patients we serve. We to improve both diagnostics Commercialize training programs attended by 197 seek to improve the economic value and access to therapies. physicians. Around the country, of our products and therapies, reduce Pilot, scale, and 1,138 people participated in 52 product costs, and expand access deploy broadly Building Healthcare events and 5,212 more tapped into through reimbursement, risk sharing, Capacity our information hotline and website. and appropriate pricing. Training healthcare professionals n India: We provide courses for is fundamental to expanding doctors at specialized Therapy Economic Value Assessments and Procedure Training Centers Measure patient access to care, especially Since 2013, we have used our five- in Mumbai, Chennai, and Delhi, in low-income countries. In step economic value assessment Track ROI to as well as through hospitals and FY2015, we invested $18.7 million process to measure and demonstrate medical colleges throughout the Medtronic in patient education initiatives the lifetime value of our products and country. In FY2015, 1,890 healthcare and $108.8 million in capacity therapies to the patients who depend professionals received training in building and training activities on them. By focusing on innovations 220 programs. for medical professionals. Our that deliver real economic value while addressing critical healthcare needs, Innovate we can improve market penetration and establish Medtronic as a leader in Iterate products healthcare innovation. and programs

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Access 18 Product Cost Savings healthcare system. In addition, we outcome requirements to product believe that outcome-based payment pricing and reimbursement schedules. We have been working toward structures make all stakeholders in As a result, Medtronic can share a five-year goal to achieve $1.2 the healthcare industry, including long-term accountability for patient billion in product cost savings by Medtronic, more accountable. Not only outcomes, creating shared interest in FY2018. Our efforts have focused do these payment structures benefit health results. on streamlined manufacturing the people receiving our products, processes and efficiencies and but they also better align with the In February 2015, Medtronic announced new developments in product financial incentives of healthcare our first risk-sharing contract in the design that reduce costs and product manufacturers and providers. U.S. for TYRX absorbable antibacterial improve performance. As we In FY2015, the U.S. Medicare system envelopes. These hold pacemakers and integrate with Covidien, we are announced that it is moving toward implantable cardioverter defibrillators reevaluating our goals with regard outcome-based payments, and we in place, releasing antimicrobial to cost savings to incorporate the expect other major healthcare payers compounds over a seven-day period cost savings initiatives of both to follow suit. to reduce infection risks following companies. surgery. Under the terms of this Medtronic’s Global Health Economic contract, Medtronic guarantees a Product Pricing and and Reimbursement Team executes certain reduction in infections, which Payment our economic value strategy, in are costly to the hospital, when the line with the evolving healthcare TYRX envelopes are used. Medtronic and our stakeholders environment. The team continually across the healthcare sector analyzes the impact of our product We also work to improve the are engaged in an important reimbursement policies and pricing on affordability of our therapies. Pricing and ongoing conversation the adoption and use of our medical models include: volume pricing and about rising healthcare costs. devices and therapies. In addition, the rebate models for hospitals, adaptive We understand and support team supports our business units in pricing for long-term condition the increasing demands from developing tools and resources that treatments, and financial assistance healthcare providers, payers, and improve reimbursement and pricing to new and existing patients through purchasers for transparency and strategies. charitable programs, payment plans, accountability in how companies and other programs. like ours deliver efficient, high- In FY2015, we began exploring quality, and cost-effective care. performance-based risk contracts to We firmly believe that medical improve accountability in our product technology can benefit not pricing. This effort linked specific only outcomes, but also lead product performance and/or patient to improved efficiency in the

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Access 19 Patient Further, Together Safety Quality Begins With Me Ask anyone from Medtronic, “Who is responsible for product quality?” and you’ll hear the same response every time: “Me.”

As Medtronic and Covidien integrate, we are building on our Our innovations have the combined and proven histories of quality performance and product power to change lives. But reliability. Covidien’s strengths in product quality highlight just they also must be safe. That’s how well aligned our priorities and capabilities are, and how we can why across our business leverage the best of both companies. we apply rigorous controls In 2011, Covidien launched Quality Begins with Me. This program to ensure the safety and fosters long-term capability building among employees, effectiveness of all products. empowering them to promote excellence and show individual leadership to achieve better product quality and flawless execution. Our multitalented team This closely mirrors Medtronic’s long-standing commitment to of Medtronic scientists, individual responsibility for quality and product safety in every job engineers, and clinicians are function. committed to our culture of accountability and excellence. In FY2015, the Quality Begins with Me team received a Medtronic Star of Excellence Award, recognizing their extraordinary And that commitment shows performance, innovation, and measurable results. up in all facets of product development. From the way Built on the foundation of continual improvement, our integration we develop new ideas, to how with Covidien creates new opportunities to enhance systems and we conduct clinical trials and further embed quality into our culture. Across Medtronic, we are research, manufacture our rolling out new trainings and communications campaigns about our quality commitment, targeted information, and education for products, and monitor them different functional areas. The quality culture will be reinforced in use, we keep patient safety through recognition for individuals who exemplify a personal top of mind. responsibility for quality.

“Imagine what we could do for patients if each of us believes that quality begins with me,” says Joe Sapiente, Vice President of Global Quality Operations for the Minimally Invasive Therapies Group.

By the end of FY2016, we plan to fully roll out Quality Begins With Me across our combined business. By sharing resources and best practices, we are confident the new Medtronic and our stakeholders will go further, together.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Patient Safety 20 COMMITTED leading standard for comprehensive MAINTAINING HIGH- “Continuing to earn the TO PRODUCT quality management systems that QUALITY FACILITIES trust and confidence RESPONSIBILITY AND meet international medical device regulations, to guide processes in our Each year, our performance is of our stakeholders QUALITY manufacturing facilities. In FY2015, 95 monitored and reviewed by regulatory through safe, high- percent of our owned manufacturing We design and manufacture agencies that inspect our facilities for quality products and sites were ISO 13485 certified. quality and safety. In FY2015, we hosted medical devices that patients services, as well as rely on daily, many of which are 152 regulatory inspections at our To further standardize and synchronize implanted inside their bodies. manufacturing facilities, of which 93 ongoing compliance quality systems across our global To protect patients’ health and percent resulted in no adverse findings. sales and distribution centers, we with global regulations ensure their peace of mind, it is Our goal is to maintain an average of 0.5 introduced the World Quality program will help Medtronic imperative that these products, or fewer findings per inspection, which in FY2015, which will fully roll out by and the materials they are made we exceeded with 0.15 this year. solve healthcare’s early FY2017. World Quality focuses on of, are of the highest quality. biggest challenges and core requirements in quality systems, Regular inspections help us understand post-market surveillance, supplier take a leadership role Medtronic insists on quality and each regulatory body’s expectations engagement, and operational quality. safety at every stage of the value and priorities, allowing us the continued in improving patient It outlines minimum standards within a chain. We reinforce our product opportunity to improve. We share flexible framework that are adaptable outcomes across the safety culture by requiring what we learn through our Inspection to local regulatory requirements. Local care continuum.” online Annual Quality Training Knowledge Management process, and teams are conducting assessments to Certification for employees roll out any necessary changes across Luann Pendy, Ph.D., Senior Vice identify gaps between current practice worldwide. We exceeded our our global facilities. President, Global Quality and new World Quality standards. We goal of 98 percent certification will implement detailed plans to align in FY2015, with more than 99 We strive for compliance with evolving all activities and operations with the percent of employees taking the regulatory expectations wherever we new program. Overall, World Quality training. make and sell our products. To this end, will help smoothly integrate Medtronic our internal audit program, Medtronic and Covidien’s quality management Our Design Reliability and Corporate-Wide Assessment for systems, while strengthening risk Manufacturability (DRM) program Regulatory Excellence (MCARE), management as we continue to grow in brings quality into R&D, designing analyzes quality management new and emerging markets. safety and reliability from systems, identifies gaps, and develops Learn about quality inception. Testing that simulates corrective action plans. MCARE We also insist on and monitor safety performance at the Medtronic real-world product use helps us focuses on changing and emerging and quality performance in our third- Energy and Component predict patient outcomes. regulatory requirements. In FY2015, party manufacturers. While we do the team completed 28 investigations Center in Brooklyn Center, not require third parties to adopt The Medtronic Operating System and supported improvements at Minnesota our system, we provide training and (MOS) embeds quality into Medtronic facilities at risk for process learning opportunities to help them production by applying Lean Six control noncompliance due to new or build their own systems and capabilities Sigma principles, a team-based emerging regulations. Going forward, that align with our expectations. methodology for reducing waste we will expand MCARE’s reach to For more information about our and inefficiency that encourages manufacturing sites acquired through responsible sourcing and approach to constant improvement. We also Covidien. supply chain management, see Supply use International Standards Chain. Organization (ISO) 13485, a

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Patient Safety 21 Standardization and databases, the team captures critical Enhancing Post-Market Research Collaborative of the Integration data on key products. In addition to Surveillance National Academy of Medicine. meeting the growing need for product Our goal is to simplify quality performance data by physicians, clinics, We are confident in our post-market Our hope is that enhanced post- management across the and governments, this effort allows us surveillance capabilities, but are always market surveillance capabilities company. To do so, we must to conduct measurable, cost-effective looking for ways that post-market will improve our monitoring standardize our quality systems, analysis of our product performance research could be improved — for effectiveness and expand access become more scalable to support and informs product development. Our our own products and across the to lifesaving products and global growth, and be more partner network includes sites in North industry. We leverage our innovative therapies. flexible to address new business America, Europe, and Latin America, spirit, scientific ingenuity, and clinical and regulatory needs. As expertise as we collaborate with the and continues to grow in line with our Product-Related Regulatory Medtronic and Covidien continue business. FDA and stakeholders across the to integrate, we are building upon industry to enhance post-market Actions the best of both companies, Medtronic therapies and product lines surveillance practices. More than 2,000 We are committed to resolving engaging employees in a wide currently under surveillance include: clinical researchers and statisticians all regulatory action and recall range of functions including cardiac rhythm, deep brain stimulation, across Medtronic support our efforts issues swiftly and effectively and R&D, manufacturing, supply implantable cardiac monitors, to contribute to the development using our expertise in quality chain management, quality, and sacral neuromodulation, spinal cord of new measurement models and management to implement the regulatory management. stimulation, surgical heart valves, and standardization that will improve required action. targeted drug delivery devices. patient safety and clinical outcomes. In FY2015, we had three open FDA MONITORING For more than 30 years, we have issued We also play a leadership role in the warning letters,2 two of which PRODUCT USE AND Product Performance Reports for Medical Device Innovation Consortium were resolved during the year. PERFORMANCE our Cardiac Rhythm and Heart Failure (MDIC), a public-private partnership Our third open warning letter products. This valuable information that advances regulatory science in transitioned to an FDA consent Our quality commitment does not assists physicians in better managing the medical device industry. Our Chief decree3, announced on April end with the manufacture, sale, or their patients’ continuing care — such Scientific, Clinical, and Regulatory 27, 2015. The FDA agreement implantation of our products and as device survival estimates, physician Officer serves on the MDIC board is specific to the SynchroMed® services. We continue to monitor advisory summaries, and performance of directors and chairs the Clinical II drug infusion pump and the performance through post- details. Trial Innovation and Reform Steering quality system at our Minneapolis market surveillance, enabling Committee. With patient outcomes Neuromodulation locations. us to understand product In addition, the Medtronic Implantable in mind, the committee’s goal is to The decree provides the FDA performance in a real-world Systems Performance Registry and increase efficiency and effectiveness with in-depth oversight of setting, measure performance the Product Surveillance Registry have in research design, data collection, and necessary design changes against known complications, and monitored the performance of our infrastructure both pre- and post- and enhancements to the identify potential problems early. Neuromodulation business’s targeted market. Neuromodulation quality system. drug delivery and neurostimulation It also sets forth a clear process A dedicated team at Medtronic products. For over a decade, these In addition, our Chief Scientific, Clinical, that allows Medtronic to continue conducts post-market systems have guided improvements in and Regulatory Officer has served on providing physicians access to surveillance. Through a network quality and reliability for future product the Board of Governors of the Patient 2 of partner hospitals, health development. Centered Outcomes Research Institute A notification from the FDA when it believes a systems, physicians, clinics, since it was established as part of the manufacturer has violated FDA regulations. 3 A legal agreement between the FDA and a company, governments, and third-party Affordable Care Act in 2010. He also which settles an FDA civil enforcement action (usually an injunction). The consent decree defines specific co-chairs the Clinical Effectiveness actions that the company is required to take in order for the injunction to be lifted.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Patient Safety 22 the SynchroMed II pump for their TRACKING CUSTOMER and all employees receive ongoing Our Clinical Trials Registry details patients. FEEDBACK education and reminders about their information about the purpose, responsibility to report product eligibility requirements, locations, In the event of a field action or In addition to monitoring product complaints. and status of each trial that we recall, we take all necessary performance, each business unit tracks sponsor (see www.clinicaltrials. actions to correct or remedy customer and patient satisfaction Safeguarding Patient Privacy and gov). Key highlights of our clinical the root cause of a problem with through surveys, customer visits, Device Security research in FY2015 are included in our products or packaging, and and net promoter scores. Feedback is Access. have systems in place to prevent systematically integrated into product Safeguarding medical device-related future field actions. Medtronic and service development to keep our data is another critical element of Open Data and also executed two field actions business responsive to customer and patient safety. See Governance for Transparency that the FDA classified as Class I patient needs. more information. recalls4 during the year, as shown Transparency in clinical research below: We also provide customers with all is critical to maintaining patient necessary information about proper CONDUCTING safety and scientific integrity. n medtronic Duet External and safe use of our products and RESPONSIBLE RESEARCH Medtronic publicly discloses Drainage and Monitoring therapies. Information is available AND CLINICAL TRIALS all clinical trials. We also seek Systems: http://www.fda. online, in device manuals, in published to publish our findings in peer- gov/medicaldevices/safety/ clinical trial results, and in product Across the product life cycle, we reviewed scientific and medical listofrecalls/ucm403857.htm performance reports. Customers conduct clinical trials to measure, journals, and collaborate with are also offered hands-on and online and provide evidence for, their safety researchers and external n flexCath Select Steerable training and education. and effectiveness for patients. To institutions. Sheath: http://www. ensure that our trials are conducted accessdata.fda.gov/scripts/ responsibly, we follow rigorous Our commitment to transparency cdrh/cfdocs/cfres/res. Product Complaint Handling guidelines laid out in our Code of extends to the data our clinical cfm?id=134194 Our global complaint handling system Conduct, Global Business Conduct trials generate. In 2013, we were collects and manages customer Standards Policy, and Clinical Trials the first company in the medical In addition to field actions, we feedback about our products. Today, Principles. industry to make all clinical trial list product safety issues in the each business has its own complaint data for a product — the Infuse FDA MedWatch Safety Alerts handling center, but we are working We also follow international guidelines spinal fusion growth protein for Human Medical Products to standardize the system in the for clinical research, including — publicly available, through a Database. The database provides future to ensure effective and efficient the International Conference on partnership with the Yale Open safety alerts and information compliance. Our aim is to target Harmonization/World Health Data Access Project (YODA). to healthcare providers about resources on unexpected product Organization Good Clinical Practice While this action was taken medical products and devices issues that require swift and effective standards, and ISO 14155:2011 (which in response to complications that may impact patient investigation and resolution. addresses clinical investigation of related to that product, we treatment decisions. In FY2015, medical devices for human subjects), learned from the process and Medtronic had no voluntary We require all employees and where applicable. We engage with believe that open data can benefit field safety alerts listed in the distributors to report complaints organizations advancing clinical our industry, physicians, and database. within 48 hours of receipt, and we standards development and patients in the long term. take corrective and preventive education, including the Clinical Trials 4 The FDA assigns a numerical designation (I, II, or III) to a recall to indicate the relative degree of health hazard actions as needed to resolve them. Transformation Initiative, the American presented by the product being recalled. The Class I Society for Testing and Materials, and designation indicates the most serious type of recall. New employees receive training about reporting product complaints the Global Harmonization Task Force.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Patient Safety 23 Further, Together Ethical Use of Animal Research For many types of products, regulatory requirements necessitate animal research and testing. We apply high ethical standards to this research, and work with scientists, veterinary surgeons and pathologists, regulatory experts, and technical staff to ensure that our work meets all relevant standards. These include requirements laid out by the FDA, the U.S. Department of Agriculture, the Animal Welfare Act, and the Association for Assessment and Accreditation of Laboratory Animal Care.

The Medtronic Institutional Animal Care and Use Committee, made up of internal and external stakeholders, evaluates all proposals for animal research, reviews our protocols and standards annually, Kelly Coleman and conducts facility and program inspections twice a year.

We look for ways to replace, refine, and reduce animal testing wherever possible. Potential alternatives include computer modeling and simulation and the use of cadaver and artificial tissue.

Medtronic toxicologist Kelly Coleman, based in Minneapolis, Minnesota, has been on a quest to reduce animal testing for more than two decades. Coleman has won two Medtronic Quest grants to research human cell-based alternatives to animal testing for skin irritation. The current industry standard uses rabbits, which are more sensitive than humans to skin irritation and can lead to overprediction in lab testing. In testing newer epidermal models that use human skin cells, Coleman found that they can improve accuracy. His team’s findings were published in the journalToxicology in Vitro and received the Society of Toxicology’s Best Medical Device Paper Award in 2014.

In FY2016, an ISO Technical Committee is sponsoring an international validation study to confirm Coleman’s findings. The study includes more than a dozen laboratories, and if the findings are validated, it could lead to changes in ISO standards that allow in vitro human skin assays to replace rabbit skin irritation tests in evaluation of medical devices.

“If we could replace animal tests with in vitro methods,” Coleman says, “it would save time and money, plus spare the lives of thousands of animals used throughout the medical device industry.”

More information about our animal research protocols can be found in our Policy Regarding Use of Animals and the Feasibility Assessment of Eliminating the Use of Animals for Training Purposes.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Patient Safety 24 Financial Further, Together Strength Aligning Our Business With Healthcare Needs Medtronic continues to develop and deliver new therapies and As committed as we are to globalize our operations to extend our global reach. In FY2015, we patient health, we’re equally delivered reliable and consistent business and dividend growth (see committed to maintaining charts page 27). We achieved this by closely aligning our business our financial health through strategy with the long-term macro trends in healthcare. We continue good stewardship of our to steadily identify and track these trends in both emerging and financial resources. We developed economies. fully understand that when we’re financially healthy, All of our business activity, including internal R&D, business we’re better able to improve development, acquisitions, business model innovation, and financing, clinical outcomes, expand is focused on achieving our three strategic growth ­priorities, each access to healthcare, and aligned with macro trends in global healthcare. We leverage our optimize healthcare cost and portfolio of market-leading products, expertise, global footprint, efficiency. and financial strength to pursue opportunities in attractive markets. These are areas where we can position ourselves as a leader and add As we pursue our growth real clinical and economic value. strategies of therapy innovation, economic value, and globalization, we also LONG-TERM HEALTHCARE MACRO TRENDS ensure that our actions and decisions around these MACRO TRENDS MEDTRONIC GROWTH STRATEGIES strategies are financially OPERATING COSTS THERAPY sound. That way, we can INNOVATION deliver consistent growth and Desire for better clinical returns while contributing to outcomes through the use of Build the business around core customer groups the local economies where we medical technology live and work.

A financially strong Medtronic OPTIMIZE COST ECONOMIC VALUE benefits the public and & EFFICIENCY Deliver integrated health private sectors in the solutions across the Move to value-based care continuum form of new jobs, supply healthcare systems chain purchases, capital expenditures, acquisitions and investments, taxes, EXPAND ACCESS GLOBALIZATION charitable giving, and returns Growing demands in healthcare Expand into global value to our shareholders. segments, optimize sales and in developing countries distribution channels, and innovate new business models Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Financial Strength 25 ECONOMIC CONTRIBUTION TO SOCIETY OPERATING COSTS SUPPLY CHAIN COMPENSATION INFRASTRUCTURE RESEARCH AND DEVELOPMENT AND INVESTMENTS INFRASTRUCTURE WAGES

Product Donations** COMMUNITY 13% SHAREHOLDER INVESTMENTS TAXES Corporate Foundation Cash Giving RETURNS PAID Contributions* 52% 35% *Includes support of medical conferences, charitable grants, and research and public education programs. **Estimated fair market value.

DELIVERING Form 10-K and throughout this section constant currency basis during the Free Cash Flow Growth STRONG FINANCIAL of the report include one-quarter year — just short of our mid-teens contributions of Covidien operations constant currency growth goal. We are Our strong cash position PERFORMANCE from Q4 FY2015, except where noted committed to improving our growth in enables us to make investments otherwise. emerging markets by focusing on public in capabilities and capital Our financial planning and improvements. These decision making is based on the partnerships, private partnerships, and optimization of our distribution investments enable us to meet following three baseline financial Revenue Growth our strategic vision through goals: channels. We believe emerging markets In FY2015, our annual revenue (net represent a long-term source of investments, while at the same 1. deliver consistent mid-single sales) increased 19 percent as reported, revenue growth for the company. time continuing to return value digit constant currency or 6 percent5 on a comparable, to shareholders via dividends revenue growth. constant currency basis. All four of and stock repurchases. Changes Earnings Growth in foreign currency rates 2. grow earnings per share (EPS) our groups launched meaningful affected the reported value of 200 to 400 basis points faster innovations in FY2015, including those Our FY2015 as reported net earnings our foreign currency revenues than revenue on a constant that make advances into new disease were nearly $2.7 billion, or $4.7 billion5 and cash flows in FY2015. See currency basis. areas, build on our existing market- on a non-GAAP basis. Our as reported Return to Shareholders for 3. return 50 percent of free cash leading technologies, or enhance our diluted earnings per share (EPS) 5 our performance and evolving flow to shareholders. diagnostic, therapy, and monitoring were $2.41, or $4.28 on a non-GAAP products with key wraparound basis. The acquisition of Covidien is approach following the On January 26, 2015, we programs. Revenue in emerging only included in our fourth quarter acquisition of Covidien. completed the acquisition of markets grew 23 percent as reported, performance. 5 Represents a non-GAAP financial measure. For Covidien. Our FY2015 financial reconciliation to the most comparable U.S. GAAP or 12 percent5 on a comparable, measure see Non-GAAP Financial Measures starting statements reported in our 2015 on page 31. Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Financial Strength 26 SUPPORTING LOCAL Compensation and Wages Financial Performance Summary ($ millions except percent and per share data) ECONOMIES THROUGH We contribute to local communities OPERATING COSTS through wages and benefits paid to FY2011 FY2012 FY2013 FY2014 FY2015* employees around the world. In both Net Sales (Total) $15,508 $16,184 $16,590 $17,005 $20,261 We spend billions in our developed and emerging markets, Net Sales (U.S.) $8,872 $8,828 $9,095** $9,247** $11,305 communities each year investing we are growing our manufacturing, in the operations that keep our commercial, and R&D operations. Net Sales $5,259 $5,690 $5,634 $5,652 $6,372 business running. Funds are We are also investing in hiring and (Non-U.S. Developed) allocated toward expenditures developing local talent, and creating Net Sales (Emerging $1,377 $1,666 $1,861 $2,106 $2,584 such as: research and development jobs that benefit local economies. Markets) outlays; selling, general, and Net Earnings as $3,096 $3,617 $3,467 $3,065 $2,675 administrative expenses; and We spent $5.6 billion on total Reported (GAAP) income taxes. In FY2015, our cost compensation last year, including $3.2 of products sold represented 31.1 billion in direct salary and wages, and Net Sales (Total) 0.8% 4.4% 2.5% 2.5% 19.2% percent of net sales. Our research an additional $433 million in retirement Growth (As Reported) and development expense was 8.1 benefits. Additions to Property, $501 $484 $457 $396 $571 percent of net sales, our selling, Plant, and Equipment general, and administrative 6 Represents a non-GAAP financial measure. For reconciliation to the most comparable U.S. GAAP measure see Non-GAAP Free Cash Flow*** $3,240 $3,986 $4,485 $4,563 $4,331 expenses totaled 34.1 percent Financial Measures starting on page 31. of net sales, and our non-GAAP Net Repurchase of $1,055 $1,126**** $980 $1,246 $1,271 nominal tax rate was 18.2 percent6 Common Stock of pretax income. (net of issuances) Dividends to $969 $1,021 $1,055 $1,116 $1,337 Shareholders Dividend per Share $0.90 $0.97 $1.04 $1.12 $1.22 R&D Expense $1,472 $1,490 $1,557 $1,477 $1,640 *FY2015 based on Medtronic fiscal year as reported and reflects the one-quarter contribution of the Covidien transaction which closed on January 26, 2015. ** Restated from 2014 Integrated Performance Report. *** Represents a non-GAAP financial measure. For reconciliation to the most comparable U.S. GAAP measure see Non-GAAP Financial Measures starting on page 31. **** Excluding $218M of proceeds from Physio-Control used for repurchases.

NET SALES BY OPERATING SEGMENT AND BUSINESS ($ millions)* Employee Compensation Cardiac & Vascular Group ($ millions)

Minimally Invasive Therapies Group FY2011 FY2012 FY2013 FY2014 FY2015* Restorative Therapies Group Total Compensation** $4,737 $5,045 $5,322 $5,376 $5,614 Diabetes Group

$15,508 $16,184 $16,590 $17,005 $20,261 Salary and Wages $2,744 $2,864 $2,948 $3,051 $3,169 FY2011 FY2012 FY2013 FY2014 FY2015** Retirement Benefit Plan $368 $319 $419 $419 $433 Revenue Growth 0.8% 4.4% 2.5% 2.5% 19.2% *The compensation data contained in this table represents Medtronic operations for FY2015, excluding Covidien *Some data has been restated from FY2014 report and reflects data reported in our FY2015 Form 10-K **Total Compensation includes salary and wages, incentives, overtime, severance pay, payroll taxes, retirement benefits, auto **FY2015 based on Medtronic fiscal year as reported and reflects the one-quarter contribution of the Covidien transaction which allowance, and other benefits. closed on January 26, 2015

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Financial Strength 27 MEDTRONIC EXPENSES products, opportunities to optimize to our portfolio of medical ($ millions) our distribution channel, and products and services that will acquiring companies that have improve outcomes and efficiency developed interesting and creative for customers and patients business models. around the world, while increasing n Economic Value: we look to build our global footprint. Moreover, out our integrated health solutions Covidien provides greater access to cash, enabling us to Cost of Products Sold beyond medical devices, with a focus on the entire care continuum for the invest for growth and meet our R&D Expense range of diseases we serve. capital allocation commitments Selling, General, and Administrative Expense more effectively (see Return to Shareholders). Special Charges (gains) We invest in opportunities that can Restructuring Charges, produce strong financial returns. Net Specifically, we look for acquisitions Certain Litigation Corventis Charges, Net that will deliver mid-teens risk-adjusted Acquisition-related returns, result in minimal to no “net” In June 2014, we acquired Items Corventis, based in St. Paul, Amortization of EPS dilution for shareholders, and Intangible Assets demonstrate clear economic value to Minnesota. Corventis developed Other Expense, Net our business. FY2015 was a very active the SEEQ™ Mobile Cardiac Telemetry System, an external, Interest Expense, Net and exciting year for acquisitions, as wire-free, adhesive heart monitor Provision for detailed below. Income Taxes that can be worn for up to 30 days to help detect and diagnose the Covidien cause of irregular heartbeats. On January 26, 2015, we completed the The SEEQ MCT System remotely $12,453 $12,769 $13,123 $13,940 $17,586 acquisition of Covidien, a global medical monitors every heartbeat and automatically transmits the FY2011 FY2012 FY2013 FY2014 FY2015* device and supply manufacturer, in a *FY2015 based on Medtronic fiscal year as reported and reflects the partial year contribution of the Covidien transaction which closed $50 billion cash-and-stock transaction. data via Bluetooth and cellular on January 26, 2015. This was Medtronic’s largest medical connections to a monitoring technology acquisition to date. center. We believe the new Medtronic is SCALING OUR Acquisitions uniquely positioned to be a catalyst in Visualase IMPACT THROUGH transforming healthcare. We target acquisitions that strengthen In July 2014, we bought Visualase, ACQUISITIONS AND our core growth strategies — therapy Inc., a Houston, Texas, developer INVESTMENTS innovation, economic value, and Covidien’s product portfolio, now a principal part of our Minimally Invasive of MRI-guided laser and image globalization. guided systems for minimally Beyond investing in market and Therapies Group, and global reach will invasive neurosurgery. The product development, we seek n help us achieve our vision of better Therapy Innovation: we look to fill innovative company expanded opportunities to cultivate our role health outcomes all over the world. gaps in our product and solution our Surgical Technologies as a healthcare leader. We grow The acquisition will also make our portfolios for our core customer business portfolio. The deal our business through acquisitions business more competitive in the groups. closed for approximately $97 that bring new technology, face of emerging healthcare trends n Globalization: we focus on million in cash, including the strategic skills, capabilities, and and is aligned with our three growth expanding in value segment assumption of milestone-linked expertise to Medtronic. strategies. Covidien brings new breadth

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Financial Strength 28 “Medtronic and payments. The acquisition of Visualase neurostimulation products that treat the opening of a new facility is another example of Medtronic’s overactive bladder conditions. The in Chengdu, China, in FY2015, Covidien have joined ongoing investment in technology. It acquisition added an FDA-approved which expanded our production forces to pursue our also reinforces our commitment to nerve stimulator to Medtronic’s capabilities. The site will produce shared commitment finding breakthrough solutions across portfolio. Medtronic’s groundbreaking to addressing universal the entire surgical care continuum hemodialysis solution, which as we strive to become the partner Sophono increases access to lifesaving healthcare needs and of choice for neurosurgeons and kidney treatment by reducing accelerating Medtronic’s neuroscience centers around the world. In March 2015, Medtronic bought water consumption, increasing three fundamental hearing aid maker Sophono as part of an portability, and enabling remote NGC Medical expanding ear, nose, and throat (ENT) care. It also features a user- strategies of therapy business in our Restorative Therapies friendly interface localized for the innovation, globalization, In August 2014, Medtronic purchased Group. The Boulder, Colorado-based Chinese market. We are confident NGC Medical, a private Italian company company sells magnetic hearing it will help more patients in and economic value. We in which we owned a 30 percent stake. implants suitable for patients five years many different settings receive know that our combined A provider of managed care services and older. This acquisition enabled ENT lifesaving dialysis, including those business can have a for cardiovascular suites, operating to continue its focus on offering novel in small hospitals with limited rooms, and intensive care units, NGC therapies and technology solutions budgets, those in community real and meaningful Medical accelerated Medtronic’s Cath and supports Medtronic’s therapy health centers, and even those impact on people’s Lab Managed Services business. This innovation strategy. seeking at-home treatment. lives — helping to treat transaction represented another example of Medtronic’s continuing Diabeter We also invest in early-stage more people, in more effort to lead the transformation to start-ups whose innovative ways, and in more places value-based healthcare by offering In March 2015, we completed the solutions have groundbreaking around the world.” integrated care solutions to hospitals. acquisition of Diabeter, a Netherlands- potential to improve lives. In based provider of comprehensive FY2015, examples included: Omar Ishrak, Medtronic Chairman and individualized care for children Sapiens Steering Brain n Investing in Glooko in a $16.5 and Chief Executive Officer and young adults with diabetes. It Stimulation million Series B funding round. marked Medtronic’s first entry into Glooko is developing diabetes In August 2014, we purchased Sapiens an integrated diabetes care model. management software Steering Brain Simulation in a $203 Our goal is to transform our Diabetes that will link existing blood million cash transaction to expand Group from a market-leading pump and glucose testing systems with our brain modulation portfolio. The sensor company into a holistic diabetes smartphones. Netherlands-based company develops management company that delivers deep brain stimulation technologies tangible differences in outcomes and n Investing $2 million in to treat neurodegenerative diseases cost. DreaMed Diabetes, an Israeli like Parkinson’s disease and essential technology company whose tremor. product connects continuous Investments insulin sensors with insulin pumps, a step toward the Advanced Uro-Solutions We invest in capabilities and initiatives that accelerate our pace and breadth creation of an artificial In February 2015, Medtronic acquired of innovation, creating competitive pancreas. The DreaMed Tennessee-based Advanced advantage and greater benefit for program will be integrated into Uro-Solutions, a manufacturer of patients. One example of this was our diabetes portfolio.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Financial Strength 29 Community Investments sales and use, payroll, excise, and RETURN TO investments in the United States. value-added taxes. In FY2015, we had SHAREHOLDERS This meant we had to borrow We also make contributions $811 million in income tax provisions cash in the U.S. to fund our to the communities where we resulting in an 18.2 percent7 non-GAAP Our disciplined approach to allocating shareholder commitment and live and work, as well as those nominal tax rate, including a global capital supports our commitment to invest in the United States, while communities that have the effective rate of 23.3 percent. return 50 percent of our free cash flow our cash accumulated overseas. most urgent needs for access to shareholders through dividends The Covidien transaction to healthcare. Medtronic made The acquisition of Covidien and and share buybacks. We focus on increases our accessible cash philanthropic contributions establishment of our principal delivering dependable dividend growth flow mix to approximately 60 worth more than $89 million executive offices in Dublin provides for our shareholders, which is driven by percent of our free cash flow. during FY2015. See Community Medtronic with access to cash from our strong free cash flow generation With this increased flexibility, we Investments for more Covidien’s overseas operations without and increased access to our cash. In can meet our commitments to information about our incurring significant repatriation taxes. FY2015, we had $4.3 billion in free maintain an A credit profile, to charitable giving. As part of this transaction, we are cash flow, and returned $2.6 billion to return 50 percent of our free cash able to access some of this overseas shareholders, net of share issuance, flow to shareholders, to pursue REFOCUSING cash to reward shareholders, grow our through a mix of 51 percent dividends financially disciplined mergers business, and invest in innovation. We and 49 percent share buybacks. We paid and acquisitions, and to increase THROUGH have committed to investing $10 billion a total of $1.3 billion in cash dividends at our investment in the United DIVESTURES in future growth in the United States. a rate of $1.22 per share. States. Medtronic pays all applicable taxes on When needed, divestures provide 7 Represents a non-GAAP financial measure. For foreign earnings in the countries in Following a 9 percent increase in our reconciliation to the most comparable U.S. GAAP the opportunity to refocus our which we do business. cash dividend, FY2015 marked our 37th measure see Non-GAAP Financial Measures starting business activities and product on page 31. consecutive year of dividend increases. and therapy portfolio on our We continued to be included in the S&P strategic priorities. In FY2015, we FINANCIAL ASSISTANCE 500 Dividend Aristocrats Index and our sold our MicroFrance and Xomed dividend per share has grown at an 18 manual ENT and laparoscopy Various stakeholder groups will percent compounded annual growth medical equipment lines to occasionally provide Medtronic rate over the past 37 years. In addition, Integra LifeSciences Holdings. with financial incentives in order Medtronic recently declared a 25 Medtronic management and the to attract and support long-term percent increase in its cash dividend for company’s board of directors investments in their geographies or FY2016, raising the quarterly amount to meet regularly to assess all disease areas that are aligned with $0.38 per ordinary share for an annual Medtronic businesses to ensure our business strategies. In FY2015, we amount of $1.52 per ordinary share. strategic fit. received approximately $520 million in government financial incentives Our acquisition of Covidien helps us globally. These incentives can take maintain our current commitment to ADDING VALUE various forms, including tax relief shareholder returns. Historically, given and tax credits, investment grants, THROUGH TAXES U.S. tax policy, only about 35 percent research development grants, and of our free cash flow was accessible In part, we generate value for the other direct incentives including to return to shareholders and make communities and countries where subsidies, benefits, and awards. we operate through the taxes we pay, including income, real estate

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Financial Strength 30 Fiscal Year Reconciliation of Reported Growth to Comparable Constant Currency Growth1 Non-GAAP (Unaudited) ($ in millions) Financial Fiscal Year Ended April 24, 2015 Measures A Medtronic As Reported Twelve Months Ended April 24, 2015 $20,261 Non-GAAP financial B Covidien As Reported Nine Months Ended December 26, 2014 8,108 measures should be C=A-B FY15 Pro Forma Historical Revenue 28,369 considered supplemental D Non-GAAP Adjustment2 (127) to, and not a substitute for, E=C-D FY15 Comparable Historical Revenue 28,242 reported financial results prepared in accordance with F Medtronic As Reported Twelve Months Ended April 25, 2014 17,005 U.S. GAAP. Medtronic uses G Covidien As Reported Twelve Months Ended March 28, 2014 10,375 non-GAAP financial measures H=F-G FY14 Pro Forma Historical Revenue 27,380 to facilitate management’s I Non-GAAP Adjustment3 32 review of the operational J=H-I FY14 Comparable Historical Revenue 27,412 performance of the company K=(A-F)/F FY15 Reported Growth 19% and as a basis for strategic planning. Medtronic believes L Currency Impact on Growth (794) that the resulting non- M=(E-J-L)/J Comparable Constant Currency Growth1 6% 1 Constant currency growth, a non-GAAP financial measure, measures the change in revenue between current and prior year periods using average exchange rates in effect during the applicable prior GAAP financial measures year period. 2 Represents the decrease in Covidien revenue for the nine months ended January 23, 2015 as compared to Covidien revenue for the nine months ended December 26, 2014. provide useful information 3 Represents the increase (decrease) in Covidien revenue for the twelve months ended April 25, 2014, as compared to Covidien revenue for the twelve months ended March 28, 2014. to investors regarding the underlying business trends and performance Medtronic PLC Reconciliation of Operating Cash Flow to Free Cash Flow of the company’s ongoing (Unaudited) (in millions) operations and are useful FY2011 FY2012 FY2013 FY2014 FY2015 for period over period comparisons of such Net cash provided by operating activities $3,741 $4,470 $4,942 $4,959 $4,902 operations. The non-GAAP Additions to property, plant, and equipment (501) (484) (457) (396) (571) financial measures reflect Free cash flow $3,240 $3,986 $4,485 $4,563 $4,331 an additional way of viewing Free cash flow, a non-GAAP financial measure, is calculated by subtracting property, plant, and equipment additions from aspects of the Company’s operating cash flows. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, operations. Reconciliations financial performance measures prepared in accordance with U.S. GAAP. between non-GAAP financial measures and the most comparable U.S. GAAP measures follow.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Financial Strength 31 Reconciliation of Consolidated GAAP Net Earnings and Diluted EPS to Consolidated Non-GAAP Net Earnings and Diluted EPS Fiscal Year Ended April 24, 2015 Net Earnings Diluted EPS ($ millions) GAAP $2,675 $2.41 Impact of inventory step-upa $455 0.41 Impact of product technology upgrade commitmentb $61 0.06 Special gains, netc $(23) (0.02) Restructuring charges, netd $180 0.16 Certain litigation charges, nete $27 0.02 Acquisition-related itemsf $433 0.39 Amortization of intangible assetsg $538 0.49 Impact of acquisition on interest expenseh $49 0.04 Certain tax adjustmentsi $349 0.31 As adjusted $4,744 4.28

The data in this schedule has been intentionally rounded to the nearest $0.01 and, therefore, may not sum. a Represents amortization of step-up in preliminary fair value of inventory acquired in connection with the Covidien acquisition. b Represents the probable and reasonably estimable commitment related to a CRHF global comprehensive program for home based monitors due to industry conversion from analog to digital technology. c Includes $64 million after-tax ($100 million pretax) charitable contribution made to the Medtronic Foundation, $25 million after-tax ($41 million pretax) gain on divestiture recognized in connection with the sale of a product line in the Surgical Technologies division and $62 million after-tax ($97 million pretax) net gain recognized in connection with the sale of a certain equity method investment. d Includes a $176 million after-tax ($248 million pretax) charge related to the fiscal year 2015 restructuring initiative and a $28 million after-tax ($38 million pretax) charge related to a continuation of our fourth quarter fiscal year 2014 restructuring initiative, partially offset by a $25 million after-tax ($34 million pretax) reversal of excess restructuring reserves related to certain legacy Medtronic and certain legacy Covidien restructuring initiatives. The restructuring charge for the fiscal year 2015 initiative consisted of employee termination costs (including accelerated stock compensation due to terminations resulting from the Covidien acquisition), asset write-downs, contract termination fees, and other related costs. This restructuring charge includes expense within cost of products sold related to inventory write-offs of discontinued product lines. The fiscal year 2015 initiative primarily relates to the Covidien acquisition, strategic alignment of certain manufacturing processes, certain inventory rationalizations, and certain program cancellations. The reversal was primarily a result of revisions to particular strategies and employees identified for elimination finding other positions within the Company. e Relates to accounting charges for probable and reasonably estimable INFUSE product liability litigation of $24 million after-tax ($37 million pretax) and other matters litigation. f Primarily includes transaction and integration-related costs incurred in connection with the Covidien acquisition (bridge financing fees, legal fees, and other transaction- related costs), of which $127 million after-tax ($189 million pretax)primarily relates to accelerated or incremental stock compensation expense incurred in the acquisition. g To exclude amortization of intangible assets. h Represents the incremental interest expense incurred to hold $17 billion of debt from December 10, 2014 through the end of the third quarter of fiscal year 2015. On December 10, 2014, Medtronic issued $17 billion of debt to finance, in part, the cash component of the Covidien acquisition consideration including the payment of certain transaction and financing expenses and for working capital and general corporate purposes, which may include repayment of indebtedness. The Covidien acquisition closed on January 26, 2015. i Primarily relates to a $329 million tax expense for anticipated resolution of the Kyphon acquisition-related issues with the IRS.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Financial Strength 32 Medtronic PLC FISCAL Year Reconciliation of Worldwide Geographic Reported Growth to Worldwide Geographic Comparable Constant Currency Growth1 (Unaudited) (in millions) Emerging Markets A Medtronic As Reported Twelve Months Ended April 24, 2015 2,584 B Covidien As Reported Nine Months Ended December 26, 2014 1,089 C=A+B FY15 Pro Forma Historical Revenue 3,673 D Non-GAAP Adjustment2 (26) E=C+D FY15 Comparable Historical Revenue 3,647 F Medtronic As Reported Twelve Months Ended April 25, 2014 2,106 G Covidien As Reported Twelve Months Ended March 28, 2014 1,332 H=F+G FY14 Pro Forma Historical Revenue 3,438 I Non-GAAP Adjustment3 3 J=H+I FY14 Comparable Historical Revenue 3,441 K=(A-F)/F FY15 Reported Growth 23% L Currency Impact on Growth (196) M=(E-J-L)/J Comparable Constant Currency Growth1 12

1 Management believes that referring to comparable currency growth rates is a useful way to evaluate the underlying performance of Medtronic’s sales. Constant currency growth, a non-GAAP financial measure, measures the change in revenue between current and prior year periods using average exchange rates in effect during the applicable prior year period. 2 Represents the decrease in Covidien revenue for the nine months ended January 23, 2015 as compared to Covidien revenue for the nine months ended December 26, 2014. 3 Represents the increase (decrease) in Covidien revenue for the twelve months ended April 25, 2014, as compared to Covidien revenue for the twelve months ended March 28, 2014.

Medtronic PLC Reconciliation of Effective Tax Rate to Non-GAAP Nominal Tax Rate (Unaudited) ($ in millions) FY15 Provision for income taxes $811 Effective tax rate 23.3% Non-GAAP adjustments -5.1% Non-GAAP nominal tax rate1 18.2%

1 Non-GAAP nominal tax rate is defined as the income tax provision as a percentage of income before income taxes, excluding Non-GAAP Adjustments. We believe that the resulting non-GAAP financial measure provides useful information to investors because it excludes the effect of these discrete items so that investors can compare our recurring results over multiple periods. Investors should consider this non-GAAP measure in addition to, and not as a substitute for, financial performance measures prepared in accordance with U.S. GAAP. In addition, this non-GAAP financial measure may not be the same or similar to measures presented by other companies.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Financial Strength 33 Community Further, Together Investments Promoting Healthcare Equality with United Way Minnesota boasts one of the healthiest populations in the United States. However, it also has one of the largest gaps in health Noncommunicable diseases outcomes between affluent and low-income residents. For example, account for 63 percent people born in high-income suburbs of Minneapolis or St. Paul can of deaths globally each expect to live an average of 83 years or longer. Those born in poor year. Conditions such as neighborhoods of either city have a life expectancy of 70-75 years. cardiovascular disease, cancer, chronic respiratory In August 2014, the Medtronic Foundation announced a five-year, diseases, and diabetes affect $2.5 million partnership with Greater Twin Cities United Way to many people between the correct this unacceptable disparity. Research shows that frontline ages of 30 and 70 — those in health workers are a vital resource to making meaningful impacts on the prime of life. But there are local outcomes. As such, our partnership focuses on increasing the solutions. number of healthcare workers and building capacity in low-income We support the World Health communities. The goal is for people to learn to better manage their Organization’s (WHO) goal health and take advantage of available health resources. to reduce premature death from noncommunicable In FY2015 the Medtronic Foundation worked with United Way to diseases by 25 percent conduct a needs assessment to identify medically underserved by 2025. That’s why we communities. Moving forward, we will engage community leaders devote a large portion of our and organizations in collaborative efforts to reduce unequal access community investments to to healthcare. this critical area and focus our efforts where need and “If one lives in a neighborhood with limited resources, healthcare lack of access to care are access remains separate and unequal. By partnering with Medtronic greatest. We also encourage Foundation, we’re striving to correct the course and aim for our employees to donate healthcare parity and healthy communities.” their time and resources to these causes. Additionally, Sarah Caruso, President and Chief Executive Officer, Greater Twin Cities United Way every year we support communities afflicted by natural disasters, by funding major relief organizations and donating health equipment and supplies. Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Community Investments 34 CONTINUUM OF CARE OUR APPROACH TO GIVING total giving comprises Medtronic Foundation grant-making and Medtronic Philanthropy supports corporate cash and product INDIVIDUALS INDIVIDUAL organizations and initiatives that donations. In FY2015 our business expand access to healthcare and build units made product donations AT RISK DECIDES TO healthy communities through the worth $11.5 million globally. GENERAL SEEK CARE Medtronic Foundation and corporate POPULATION giving. We focus on underserved Corporate Giving Guidelines communities around the world that suffer from chronic, acute, and Our business units make cash neglected diseases. We strengthen the contributions to charitable capabilities of healthcare providers, organizations in support of advocate for policy change, broaden medical conferences, events, TREATMENT LONG-TERM A R RIVA L and increase the availability of research, and education OF DISEASE MANAGEMENT AT FIRST POINT products and therapies, and support programs aligned with our systemic change. Additionally, we Mission. Every quarter, we OF DIS E A S E OF CARE focus on improving the communities disclose all donations made to where our employees work, live, give U.S. customers, or organizations and volunteer — demonstrating our affiliated with them, on our dedication to making the world a Charitable Donations Registry. healthier place for everyone. Our corporate guidelines for DEFINITIVE Yearly, we commit to donating 1.5 charitable giving are outlined ARRIVAL AT PRELIMINARY percent of our global pretax profits in our Charitable Donations DIAGNOSIS HEALTH CENTER DIAGNOSIS to charitable causes. In FY2015, we Guidelines. They adhere both OF DISEASE provided more than $89.7 million to our Global Business Conduct in community investments. This Policy and the medical technology represented approximately 1.9 percent industry’s AdvaMed Code of of Medtronic legacy pretax profits. Our Ethics.

MEDTRONIC PHILANTHROPIC CONTRIBUTIONS Expanding Access across The continuum of care represents ($ millions) the Continuum of Care the patient’s journey from knowledge and awareness, through diagnosis, to For people in underserved long-term management and control Medtronic Foundation communities, life-changing care Giving of a disease. This approach allows us Corporate Cash is often out of reach. The barriers to systematically assess, identify, and Contributions to affordable, quality healthcare remove barriers to care at each stage of Product Donations are ubiquitous and daunting. the patient experience. $59.9 $63.0 $64.4 $67.0 $89.7 The Medtronic Philanthropy FY2011 FY2012 FY2013 FY2014 FY2015 continuum of care framework % of Global Pretax Profits 1.4% 1.5% 1.5% 1.5% 1.9% guides our strategic approach to community investments.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Community Investments 35 bringing FY2015 Highlights the Diabetes and Chronic Disease education, capacity building, and Support Project. The Project will advocacy to support patients healthcare to n our Puerto Rican business gave address the chronic disease needs from diagnosis through post- more people $300,000 to five local organizations of Aboriginal people living in the treatment monitoring. working to treat chronic conditions. Alice Springs Town Camps of central Medtronic Philanthropy amplifies The grants went to the Puerto the transformative health impact Australia. The Medtronic Foundation leads Rico Kidney Foundation, the the HeartRescue Project. This of our business by supporting Ronald McDonald Children’s n In São Paolo, Brazil, a $100,000 effort builds on best practices programs that expand access Foundation, the Community to care for people living in the grant was given to the Pan American at the bystander, prehospital, Education through Commitment Development Foundation to support and hospital level to improve most medically underserved and Service Program, the Ponce communities worldwide. Our the Health Innovation Initiative in sudden cardiac arrest (SCA) YMCA, and Turabo University’s partnership with Via Rio and the survival rates, which have not philanthropic efforts target Neurocognitive Comprehensive vulnerable communities and Juvenile Diabetes Association. improved much over 30 years. Center for Treatment, Research, and The program will scale up health Working with six U.S. states and markets that require multisector Community Services. partnerships to design and services for at-risk communities American Medical Response, deliver effective interventions. through education, youth diabetes HeartRescue works toward n In San Antonio, Texas, we gave programming, and a women’s heart- integrating community response Our Community Health Access $250,000 to five community and Global Health Access health initiative. efforts, coordinating public and organizations that promote healthy professional education about grant programs deliver on this lifestyles and access to care objective. n our site in Shanghai, China, acute cardiac events such as SCA, for people with diabetes. Grant made a grant of $50,000 to the and introducing and applying best recipients included: JDRF (formerly Shanghai Oriental Institute of Brain practice treatments. It also helps Community Health Access Juvenile Diabetes Research Science, an academic research hospitals implement a method Grants Foundation) of South Texas, the institute, to support prevention for measuring SCA performance YMCA of Greater San Antonio, the Our Community Health and rehabilitation of spina bifida and outcomes. Our partners in American Diabetes Association of and hydrocephalus. Through this effort include universities, Access grants focus on care San Antonio, San Antonio Sports, for underserved populations education and awareness, including government, and emergency and the San Antonio Social and exhibitions, articles, and scientific medical service providers. in the 36 communities where Health Research Center. we have a significant employee lectures, as well as free medication Early results are promising. For and pro bono operations and example, the City of Chicago has presence. We believe strongly n our manufacturing facility in Pointe in our responsibility to support rehabilitation services, our grant is seen an increase in SCA survival Claire, Montreal, Canada, donated bringing critical care to patients in rates from 2 percent to 12 the health and well-being of our $50,000 to NOVA West Island. This neighbors — in both developed and around Shanghai. percent in just two years. In 2016, volunteer-driven health organization HeartRescue Project leadership and developing countries. Visit provides nursing, transportation, Medtronic Philanthropy for a map Global Health Access Grants will transfer to the University and bereavement services and of Washington, a founding and overview of recent grant support for adults and children recipients. The Global Health Access grant partner, and expand nationally affected by cancer and ALS. program provides funding and as the HeartRescue Consortium. resources to address acute, chronic, Medtronic Philanthropy will n near our North Ryde facility in and neglected diseases around the continue funding these advances. New South Wales, Australia, our world. Many of these grants are Based on successful results, the $80,000 grant to the internationally long-term partnerships addressing effort is poised to expand in the renowned Baker IDI Heart and systemic obstacles in local healthcare United States, China, and India. Diabetes Institute is establishing systems. Our partners provide

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Community Investments 36 Further, Together Extra Life – One Brushstroke at a Time Bakken Invitation honoree Clint Doyle was just two years old when he experienced his first episode of sudden cardiac arrest. More episodes followed throughout his childhood, due to a condition known as CPVT (cardio-catecholaminergic polymorphic ventricular tachycardia), and he suffered associated brain damage. At age 19, Clint received an Implantable Cardioverter Defibrillator (ICD), enabling him to live a much fuller life.

Clint’s passion for art has inspired him throughout his medical journey. At age 27, he now leads art programs for special-needs children and is an advocate for young people with disabilities. “By passing on the skills I have learned,” he says, “I feel I can positively inspire ‘heart-brain’ connections in these kids, including the development of creativity. Art gives us … a combination of creative and solution-based thinking that is vital in today’s world.”

Clint Doyle

HealthRise is a five-year, $17 engagement and policy initiatives. On- These deaths are preventable, as Additional videos and photos million grant program that aims the-ground work in India has begun, RHD most commonly results from available at Live On, Give On. to address noncommunicable where community assessments in untreated strep throat infections. diseases in Brazil, India, South Shimla and Udaipur revealed significant Our commitment has led to the birth Africa, and the United States. lack of awareness, under-diagnosis, and of RHD Action, a global movement to The Medtronic Foundation poor management of hypertension and reduce the burden of RHD in vulnerable launched the program in diabetes. Additionally, HealthRise has populations of all ages throughout the FY2013 in partnership with Abt expanded efforts to South Africa, as world. The driving force for this effort Associates and the Institute for well as to three counties in Minnesota. is the RHD Action Alliance, a coalition Health Metrics and Evaluation. In FY2016, HealthRise will begin to of three global organizations — the The program uses community transition from needs assessments to Medtronic Foundation, the World and health system needs program implementation. Heart Federation, and RhEACH— assessments to uncover potential working together toward a shared goal View Clint’s Story barriers across the continuum of In September 2014, the Medtronic of ending RHD. Critically reinforcing care and awards grants to local Foundation announced a five-year this movement are the RHD Action organizations that recruit and $6 million global commitment to Countries, a cohort of countries where train health workers, educate reduce premature deaths caused government and partner institutions patients, and support stakeholder by Rheumatic Heart Disease (RHD). are actively engaged in achieving

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Community Investments 37 Further, Together Going the Extra 10 Miles As a child in Sanmenxia City, China, Medtronic Global Hero Fei Jiao never imagined completing a 10-mile race in Minneapolis. While still in elementary school, Jiao was diagnosed with Parkinson’s disease. For years he struggled to walk, until receiving deep brain stimulation therapy at age 20, which helped him regain his mobility.

Today, Jiao not only can walk, he also runs 20 miles a week. He’s a community hero, too — volunteering his time to counsel patients with Parkinson’s disease and their families at the hospital where he was treated. Fei Jiao specific RHD targets, while Bakken Invitation Global Heroes View Medtronic Global Hero also strengthening their health Nicola Derryberry Maurer’s Every year we look to the millions The Medtronic Global Heroes® program systems. The inaugural countries story, and see how she supported by Medtronic of people who have benefited from highlights how a medical diagnosis Philanthropy include Uganda, medical technology — both our own “doesn’t end the run.” The initiative prepared for the 2015 Tanzania, and India. RHD action and other companies’. Then, in the brings together runners from all over Twin Cities Marathon. will advocate for people living spirit of our co-founder Earl Bakken the world who have benefited from with RHD and seek to influence we ask, “What are you doing with your medical technologies. Global Heroes is policy related to disease extra life?” We invite and share patient a collaborative effort with Twin Cities management and treatment. stories online at www.LiveOnGiveOn. in Motion, organizers of the Medtronic org and honor 10 exceptional Twin Cities Marathon. Each year, Twin individuals annually through the Bakken Cities in Motion selects 25 dedicated Celebrating Invitation. runners who have overcome health Patients obstacles to participate in running Honorees are people who exemplify events in Minneapolis and St. Paul, Our Mission guides us to develop the belief that everyone can make Minnesota. In October 2014, we hosted solutions that don’t just alleviate a difference, and seek to dedicate our ninth annual team. The team pain and restore health, but also their healthy lives to supporting included 12 marathon runners and 13 extend life. Many patients who communities. The Medtronic 10-mile race participants, together benefit from medical products Foundation awards a $20,000 grant on representing 10 countries. Since 2006, and therapies go on to live behalf of each honoree to the nonprofit more than 220 people have participated extraordinary lives. We celebrate organization of his or her choice. and shared their personal health the ways that they serve, FY2015 winners came from seven journeys. inspire, and impact their own countries and their inspiring stories are communities with two patient- available online. recognition programs: the Bakken Invitation and Medtronic Global Heroes.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Community Investments 38 DISASTER RELIEF We also contributed $1 million to aid Employees contribute to our disaster in response to the Ebola crisis in West relief work through personal financial Natural disasters around the Africa. We allocated these funds based contributions and our Disaster Relief world create an immediate need on a detailed assessment of the short- Paid-Leave Volunteer Program. for health equipment and supplies and long-term response needs, with This program provides employees as well as a long-term need to a focus on neglected aspects of the with up to five paid days off a year to rebuild healthcare infrastructure. response. This effort included: participate in disaster response efforts. We provide product donations In March 2015, a group of six Medtronic and grant funding in the wake of n Grants worth a total of $725,000 employee volunteers affiliated with crises each year. to Last Mile Health, DirectRelief, our Medtronic Women’s Network and UNICEF, and Save the Children. the Christian Employees Resource To support emergency These supported critical health Group traveled to Haiti with Reiser preparedness and response, the services that were impacted during Relief, a Minnesota-based nonprofit Medtronic Foundation makes the epidemic, namely emergency organization. The group brought clean annual gifts to the American Red obstetric care, maternal and child water and humanitarian aid to one Cross Annual Disaster Giving health services, malnutrition of the poorest communities in the Program and the International support, access to essential Western Hemisphere. Federation of Red Cross and Red medicines like insulin and antibiotics. Crescent Societies. In FY2015, The grants also support the More information about the Medtronic we donated $600,000 to the Red establishment of community care Foundation and our grants is available Cross and Red Crescent societies, centers for children orphaned in the at www.medtronic.com/foundation. including $100,000 through the disaster. For information about employee giving American Red Cross to fund and volunteerism, see Employee Cyclone Pam relief efforts in n A $100,000 grant to WiRED Engagement. Vanuatu. International to support preparation and prevention efforts in countries To aid long-term efforts to rebuild considered at greatest risk for the healthcare infrastructure, we spread of Ebola. partner with local organizations and government agencies. For n Smaller grants to support example, in May 2014, we joined innovations with global impact. For members of the European example, we sponsored a hackathon Foundation Committee to with the Consortium for Affordable support recovery efforts for Medical Technologies (CAMTech) victims of flooding in the Balkans and Massachusetts General Hospital region with a $10,000 grant. to develop innovations to aid the fight against Ebola.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Community Investments 39 Working Responsibly Governance Further, Together and In Conversation with Engagement Tom Schumacher, Chief Ethics Officer, Medtronic Q: Why are good governance and ethical behavior so critical to We cannot transform Medtronic’s future? healthcare alone. It will take all players in the healthcare A: Trust is the foundation for business and the company’s ambition to lead in transforming healthcare systems and access globally. We have industry to find solutions. customers who will only come to Medtronic because they trust that For us to play a leading role in Tom Schumacher we will be honest about product problems and that our employees, this transformation, we must including sales reps, will act appropriately. continue to build trust among our employees, industry Q: Corruption and compliance has been a major challenge for the partners, patients, healthcare healthcare industry. How do you address this? providers, investors, A: We provide robust training globally to make sure everyone regulators, and governments. understands our rules, including comprehensive Code of Conduct and anti-corruption training. We establish solid internal controls and This means operating openly monitor them to help prevent problems. We look to ethical behavior and transparently. It means when we recognize and reward employees and offer advancement. acting ethically. It also means We provide many options for employees to raise concerns, including being honest in marketing confidentially. We investigate issues. And we walk the talk against our medical products and corruption and intentional misconduct. In fact, we terminated 97 ensuring the privacy of people across Medtronic during 2014 (calendar year) for ethical and patients who use them. And it compliance-related lapses. means making certain every Q: Who are the key players in ensuring that your goal of having the single employee knows about, highest ethical standards is met? understands, and complies with our policies at all times. A: Every employee at Medtronic has a role to play. But leadership from the top is critically important. I meet regularly with the board, the CEO Our credibility and business one-on-one, and senior management to address these issues. We also success are inseparable from ask employees for their perspectives on ethical issues in our annual our conduct throughout our engagement survey, and embed ethical conduct in our performance value chain, from product reviews. Managers assess the ethical behavior of their team members, design to interactions with and employees conduct self-assessments as well. This is a process we doctors and suppliers. are continually refining as we work to instill an ethical culture in every Medtronic workplace.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Governance and Engagement 41 COMMITTED TO AN we continued to strengthen our culture ethics risk assessment processes. For region where Medtronic or our ETHICAL WORKPLACE of transparency and integrity in our more information, see Sustainability partners operate. We stand day-to-day behavior. Steps included Risk and Opportunity. behind this with the equivalent Medtronic is committed to advancing our programs on compliance of 223 full-time employees who fostering an ethical culture in and ethical conduct, assessing Our Code of Conduct spend time helping to ensure that our workplace, tackling ethical employees’ ethical behavior during our practices remain compliant challenges head-on. Our board annual performance reviews, and Medtronic’s global Code of Conduct — globally. In addition, we require and CEO actively lead our efforts making compliance a focus of employee “The Compass: Our Code of Conduct all sales and marketing, and other to embed a culture of integrity, engagement. for Living out the Mission” — guides customer-facing employees — working with employees, employees in their daily operations including all those involved in patients and healthcare How We Manage Ethics and interactions with all stakeholders. dealings with business partners, providers, investors, regulators, It is the foundation of our ethics international customers, and governments, and the public. Ethical leadership goes beyond having and compliance program providing foreign officials — to complete good policies in place. It is a state of comprehensive standards for ethical mandatory biennial anti- We continue to strengthen and mind that filters into all actions and behavior in our relationships with: corruption training. improve our culture of ethics requires continued engagement n fellow employees and integrity, and our progress throughout our global company. We also have high expectations n Patients and customers is demonstrated through the The Medtronic Office of Ethics for our global distributors and results we’ve achieved. We look and Compliance (OEC), led by our n the company and shareholders dealers and perform due diligence to industry and other benchmarks chief ethics and compliance officer, n governments, and before entering into contracts to see how our program stacks shares this responsibility and takes requiring them to meet the n communities and the public. up, and we consistently score in an active lead on its promotion. The following criteria: the top quartile in every measure OEC oversees and implements our All employees and board members n Internal compliance and ethics policies and programs, helping that we examine. Some of these read and certify their understanding of corruption policy training the company ensure that we meet indicators include employees’ the Code. In FY2015, we continued our programs. all legal, compliance, and ethical willingness to raise issues without training and certification on the Code’s obligations. OEC activities include: n an internal corruption policy fear of retaliation, how quickly provisions, including multilingual facilitating ethics training, maintaining equivalent to our own. and consistently we respond training courses. to verified or proven incidents an employee whistleblower hotline, n contractual rights for of unethical behavior, and how leading investigations against alleged Medtronic to conduct audits confident our employees are that employee misconduct, running Preventing Corruption and monitoring of distributors analytics and monitoring programs, and dealers. they understand our Code of Corruption and conflicts of interest supporting compliance leaders across Conduct and its requirements. are significant challenges in our sector, n Annual certification of our global operations, and developing We invest significant time and especially in product sales-related compliance with third-party awareness programs and campaigns resources in our systems, data interactions with health services anti-corruption policies and that endorse and grow our ethical analytics, and human resources personnel. compliance terms. so that we get ethics and culture. compliance right within our For this reason, we supplement our We continue to expand our Our chief ethics and compliance officer organization. Code of Conduct with Global Anti- anti-corruption activities by has direct, independent access to the Corruption and Global Conflicts periodically updating our internal board and CEO, reporting periodically We continue to feel that of Interest policies. These policies policies and training activities. to the Audit Committee and at least meeting these challenges is guide relevant employees on how to annually to the board. In recent years, the responsibility of every act in full compliance with the laws In FY2015, Medtronic did not we have also strengthened our global Medtronic employee. In FY2015, and regulations of every country and enter into any settlements

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Governance and Engagement 42 with or pay any fines to the United Rewarding Excellent Conduct partnerships drive meaningful Ethics Training States government, or other global innovation that ultimately FY2015: By the governments, relating to non- When our employees act with improves patient outcomes. We Numbers compliance with anti-corruption laws. exceptional integrity they become role are proud of our relationships models for their colleagues, teams, and with physicians and work n approximately 99 percent partners. Recognizing this, in FY2014 Policy on Raising Questions or tirelessly to ensure the integrity of all new employees in the we established the Medtronic Compass of these collaborations, Concerns Award. The Medtronic Compass Award U.S. completed training minimizing any potential conflicts in one of the highest awards that can on and certification of our Medtronic empowers employees to of interest. In doing so, we follow openly discuss questions or concerns be received by a Medtronic Employee. internal guiding principles that Code of Conduct. about potentially unethical or illegal This prestigious award celebrates emphasize patient benefit. behavior which violates our Code of employees who fully embrace our n 100 percent of all U.S. Conduct. We offer several channels for Code of Conduct and operate ethically Medtronic has long supported people managers employees to report concerns. even in the most challenging of initiatives that publicize certified having read and circumstances. Since 2014, we have had payments made to physicians. In the honor and pleasure of awarding 10 understood our Code of The Office of Ethics and Compliance 2010, we became an early adopter employees around the globe with the Conduct. processes, tracks, and oversees all of voluntary reporting of certain reported concerns it receives, from Medtronic Compass Award. payments to U.S. physicians. In investigation through resolution. This 2013, transparency reporting includes matters that are reported by became mandatory for all U.S. employees and others through the OUR APPROACH TO life science manufacturers. hotline, the Director’s inbox, as well CRITICAL ETHICAL ISSUES Payments are now disclosed as serious matters that are escalated on the CMS Open Payments Employees May Our Mission encourages us to “be through other reporting channels. (Sunshine Act) website, and recognized as a company of dedication, Voice or Raise During FY2015, the Office of Ethics and we have made significant honesty, integrity, and service.” Questions To: Compliance tracked 525 concerns. investments to ensure that we Building trust with doctors, patients, have the appropriate systems in n Their manager. and other business partners requires All concern reports are carefully place to meet CMS requirements. us to be open and honest about our n investigated and if an allegation is Their human resources, products. Guided by our Code of proven true, we take appropriate We also follow industry codes legal, or compliance Conduct, Global Business Conduct disciplinary action. including the AdvaMed Code representatives. Standards Policy, and other related of Ethics on Interactions with polices, Medtronic is committed to the We measure employee confidence Health Care Professionals and n The Medtronic Office of responsible marketing, communication, in reporting concerns by including the Eucomed Guidelines on Ethics and Compliance. and promotion of all our therapies and compliance-related questions in Interactions with Healthcare services. our annual employee engagement Professionals. For more n The Voice Your Concern survey. We also have plans to conduct information on our approach Line — a website and a global compliance culture survey to Working Ethically with to physician collaboration and related toll-free hotline assess employee attitude toward, and Healthcare Professionals transparency, please visit our knowledge of, managing compliance– website. operated by a third party We collaborate with physicians and related issues. The results of this provider. Reporting may be other healthcare professionals Corporate Executive Board-validated anonymous. and consultants through product survey will allow us to tailor our development, training, consultation, compliance training programs moving n The Director’s email inbox. and clinical research. These forward. Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Governance and Engagement 43 Marketing Responsibly to our Customers Further, Together Our patients’ well-being depends The Medtronic Compass Award on our medical services and The Medtronic Compass Award recognizes individual employees therapies. As such, we are diligent who live out our Mission by vigilantly demonstrating behavior that in promoting our products and champions our Code of Conduct and reflects unquestioned integrity. therapies clearly and factually, and in ways that support their approved use. Medtronic is This award recognizes individuals who consistently act ethically during committed to acting in full difficult and challenging circumstances; courageously challenge norms compliance with all relevant or customary practices in order to elevate ethical performance; or take government regulations and proactive steps to drive ethical behavior among their peers, teams, industry guidelines. Each of our business units maintains and/or third parties. Recipients of the Medtronic Compass Award have internal review processes to shown an unwavering commitment to do the right thing. ensure accurate and appropriate promotion. For those products At a minimum, employees must demonstrate excellence in all of the we market directly to patients following: and individuals in the U.S., we are led by our Code of Conduct and AdvaMed’s voluntary direct-to- n Models the highest standards of honesty, ethics, and integrity. consumer guidelines. n Consistently promotes and adheres to the letter and spirit of Medtronic also adheres to Medtronic Code of Conduct, all applicable laws, and company policies. internal corporate and business- level policies, which include n Promotes and ensures an environment where ethical behavior is those that prohibit the unlawful promotion of products for off- expected and unethical behavior is not tolerated. label uses. Our policies address several related topics, including n Promptly takes appropriate action when problems occur. appropriate parameters for our Office of Medical Affairs, n Promotes and encourages an environment that inspires others to act Medtronic-sponsored education, ethically in their day-to-day business interactions and activities. and business-level training. Other ways to avoid promoting off-label use include: ongoing n Consistently acts ethically during difficult and challenging education of employees who circumstances (e.g. location, language, culture). might interact with healthcare professionals, monitoring n Courageously challenges norms or customary practices in order to conformance to our policies, promote outstanding ethical performance. structured risk assessment and management related to off-label use, and corporate-led oversight n Takes ownership for difficult ethical dilemmas, and raises them to supplement oversight at the directly and empathically with our stakeholders. business level. Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Governance and Engagement 44 Medtronic is committed to Each and every Medtronic employee is consortium of medical device Collaborating following appropriate marketing a critical line of defense in protecting manufacturers and healthcare on Product communications practices at all times, the company’s sensitive information. providers driving new industry Security and has a comprehensive and robust We offer training opportunities for standards and expectations. compliance program in place. Globally all employees, and require global We also embraced the Food On November 5, 2014, in FY2015, the company agreed to data privacy and security training for and Drug Administration’s Medtronic’s Global Privacy settle two cases involving or touching employees who handle or have access (FDA) cybersecurity guidance and Security Office (GPSO) upon the sales and marketing of certain to sensitive patient or employee data. which was released in October convened a Product products, one involving promotion Medtronic also provides companywide 2014. Before the guidance was reimbursement activities and the other communications on cybersecurity. released, Medtronic employees Security Symposium. The relating to country of origin of products shared security best practices event brought together sold to the government. Both were U.S. Ensuring Product Security and participated in FDA-led internationally recognized government settlements and included workshops. We are also active security experts and no admission of liability or wrongdoing. Product security is a priority for members of the Medical Device Medtronic. We work to make our Privacy Consortium (MDPC), researchers with 300 devices safe and secure, while also which engages policymakers to Medtronic scientists, PROTECTING PATIENT ensuring easy use for the patients balance the need for privacy and engineers, executives, PRIVACY AND SECURITY and physicians who depend on them. security regulations with our and IT, quality, legal In FY2015, we continued to advance ability to deliver safe and effective Cybersecurity is an everyday product security in the company. medical technologies. and communications challenge for companies large and Medtronic formally approved a professionals. We small. Medtronic is no exception. Our companywide Global Product Security collaborated, participating patients and customers look to us to be Policy, which provides guidance on HOW WE GOVERN OUR industry leaders in data protection and in panel discussions and integrating security into product COMPANY patient safety. We place a premium on development. This policy adds to breakout sessions, in efforts ensuring that our data and products are an already strong product security Operational integrity is the to improve medical device secure at all times, and are continually program reinforced with internal and foundation on which we security. Security threats, strengthening our procedures to external security and product experts, seek to build our business meet and exceed global standards. and partnerships. Our board such as data leaks and device rigorous processes, new product Our strong internal processes and security testing, and the most up-to- of directors and executive breaches that can pose harm technologies, expert employees, and date technologies. leadership have established to patients, were also of top collaboration with outside experts rigorous corporate policies concern. help us to establish industry-leading In addition to our internal progress, and practices that support security measures and safeguards. Medtronic is active in outside ethical governance, enhance transparency, and encourage “If we serve millions of organizations working on product Medtronic’s privacy and security security issues. We work with responsible behavior from the patients each year, that policies and practices are overseen NH-ISAC, the nation’s Healthcare top down. These policies and means we need to get security by our Global Privacy and Security and Public Health Information Sharing practices are frequently reviewed right millions of times.” Office. We have strong controls on who and Analysis Center, and the Medical and updated whenever necessary. can access sensitive information and Device Innovation, Safety and Security Mike Hedges, Chief Information closely monitor activities to identify Consortium (MDISS), the leading Officer and prevent inappropriate access to proprietary materials and data.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Governance and Engagement 45 Our Board of Directors Managing Corporate Citizenship Incentives are heavily tracked to long- one that rewards volume-based and Sustainability term performance, and are aligned fee-for-service to one that Twelve independent directors with quality compliance performance. favors value-based healthcare. and CEO Omar Ishrak, who also In our day-to-day operations, Rewarding executives through both Medtronic partners with serves as chairman of the board, important sustainability topics annual and long-term compensation healthcare providers, payers, and comprise Medtronic’s board including community engagement, structures aligns with our company’s patients to develop outcome- of directors. In his joint role, economic and environmental short and long-term goals. based payment systems. We our CEO helps align strategic performance, human rights and labor demonstrate improved clinical priorities and provides a unified practices, product responsibility, The Board Compensation Committee outcomes and economic vision across the company. While and supply chain are managed by evaluates and approves executive value through optimized care- our CEO serves as chairman, individual functional groups, rather compensation. For more information coordination and long-term board members appoint an than through a centralized citizenship on our executive compensation management of patients to help Independent Lead Director team. These functional groups include: philosophy, please view our most avoid readmission and related who chairs meetings of the Business Strategy and Development; recent Proxy Statement. costs. We engage legislators and independent directors and Environmental, Health, and Safety; elected officials in our efforts oversees the annual evaluation Ethics and Compliance; Finance; Global to support these healthcare of the board’s performance. Quality; Human Resources; Legal; ADVANCING PUBLIC improvements. Five standing committees of Regulatory; Philanthropy; Sourcing; POLICY independent directors oversee and Supply Chain. A sustainability In January, the Department of all aspects of our business, strategy team works with the We actively engage governments in Health and Human Services including risk management. above functional groups to advance support of public policies that advance announced a goal to have a Independent directors of the corporate citizenship and sustainability our Mission and business imperatives. greater percentage of Medicare board can be contacted by email performance. These groups monitor Advocacy activities include those payments in alternative payment at independentdirectors@ trends and external expectations in that enable therapy innovations, models: 30 percent by the end medtronic.com. order to identify gaps and potential promote economic value, and support of 2016, and 50 percent by the opportunities, identify appropriate globalization. end of 2018. In the U.S., just as We believe that a diverse board performance metrics, and initiate in healthcare systems around best represents the needs of discussions about goals and targets. U.S. Public Policy the world, governments and our patients, partners, and Twice a year, performance and related payers are focused on improving workforce. Currently, more than activities are reported to Medtronic’s In the United States, we seek to outcomes, expanding access, 30 percent of our board members Chief Financial Officer. advance outcome and value-based and optimizing costs and are women and more than 30 healthcare, and promote international efficiencies. By demonstrating percent represent minority How We Compensate Executives trade and corporate tax reform. We how our products and services groups. also support legislation that addresses contribute to the best outcomes, Our ambitions for our business, and patients’ needs by improving access to both medically and financially, we For more information on our for improving healthcare systems and continuity of care. Highlights from not only position Medtronic for board of directors, board and access globally, demand strong FY2015 include: growth, but also contribute to committees, and global policies leadership. We seek to attract the sustainability of healthcare and practices, please visit our executives of diverse backgrounds systems around the world. Corporate Governance website. and experiences who can collaborate Supporting Value-Based effectively and are not afraid to Healthcare challenge the status quo. To do so, we We believe it is critically important, offer competitive pay and benefits, and will benefit patients, to shift the as well as cash and equity incentives. U.S. healthcare payment model from

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Governance and Engagement 46 Opening New Markets improves glucose control, enhancing LOBBYING AND POLITICAL ENGAGING care for people with diabetes. CONTRIBUTIONS STAKEHOLDERS Favorable trade agreements fuel Collaborating with stakeholders continued economic growth, DISCLOSURE including JDRF, the Endocrine Society To maximize our business and including new job creation for and the American Association of citizenship impact, we engage countries that participate. They Medtronic’s Political Contribution Clinical Endocrinologists, we have led and collaborate with a broad also open up significant market Policy ensures that we comply with all an advocacy strategy that resulted base of stakeholders throughout opportunities for Medtronic relevant state and federal disclosure in the introduction of bipartisan the healthcare system. We therapies. Our government laws. We publish our annual political U.S. House of Representatives and collaborate with our stakeholders affairs team is an active contributions, including those made U.S. Senate legislation in FY2015. on a day-to-day basis in an participant in legislative efforts to by the Medtronic political action This legislation would provide for effort to advance innovative support trade liberalization. committee (PAC), on our website. Medicare coverage of CGM and future solutions that improve patient artificial pancreas device systems. We outcomes and make effective One particular area of interest is Every quarter, we file public lobbying continue to work with stakeholders in treatments and therapies widely the Trade Promotion Authority disclosure reports for the U.S. House of the diabetes community to push for available. Stakeholders include: in the U.S., which through the Representatives and the U.S. Senate. coverage of this important therapy. patients, physicians, hospital collective efforts of the broader Medtronic is a member of several administrators, advocacy groups, stakeholder community, was medical device trade associations governments, nonprofits and passed and signed into law International Public Policy across the U.S. and Europe, including nongovernmental organizations, in June 2015. The legislation Development AdvaMed and Eucomed. These employees, suppliers, investors, allows negotiations on pending organizations advocate for initiatives Our international affairs team focuses shareholders, regulators, and the trade agreements that we that make advancements in global on advocacy efforts that advance communities where we operate. support, including the Trans health by providing access to medical technology innovation, increase access Examples of how we engage Pacific Partnership and Trans- technology. Additional information on to affordable, lifesaving therapies, our dues paid to industry associations stakeholders include: Atlantic Trade and Investment and address inefficiencies. Highlights Partnership, to move forward. can be found on our website. include: n In FY2015, we helped launch Specifically, we are focused on the Harvard Business supporting provisions to provide n working with several national Medtronic maintains memberships Review (HBR) Insight Center, for pricing rules and transparent governments to establish a more in industry associations worldwide. a forum to examine and government reimbursement supportive innovation environment In the U.S., these include: Asia discuss the shift toward procedures for healthcare that encourages appropriate Society, Alliance for Healthcare value-based healthcare. The products that would open up medical technology adoption, Competitiveness, Americas Society/ joint collaboration between full market access to U.S.-based innovation, and growth. Council of the Americas, Corporate Council on Africa, U.S. ASEAN Business Medtronic, HBR, and the New products. n advocating, together with our England Journal of Medicine industry partners, for alternative Council, U.S. Brazil Business Council, features cutting-edge articles procurement approaches to ensure U.S. China Business Council, U.S. India Improving Therapy Access and studies from policy, “value for money” in the healthcare Business Council, U.S. Japan Business medical, clinical, and academic Medtronic has long supported system. We also stress the Council, U.S. Korea Business Council, experts. By working with these providing Medicare patients importance of using transparent and and the U.S. Russia Business Council. stakeholder groups we are with access to Continuous fair regulatory and reimbursement hoping to find better ways to Glucose Monitoring (CGM). CGM mechanisms that harness market reduce the cost of healthcare is a lifesaving technology that principles and innovation. without sacrificing quality.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Governance and Engagement 47 n each year we take part in n by engaging our employees we several industry events where gain valuable feedback and insight we engage key stakeholders into their collective experience, on critical issues facing our uncovering areas of opportunity and business and the broader improvement for the company. We healthcare industry. In continue to make strides by raising October 2014, we participated awareness and acknowledging in AdvaMed’s annual three-day and rewarding employees on their conference, which was held in performance in ethics; quality; and Chicago. We spoke on panels environmental, health, and safety, and engaged industry leaders among other areas. For more on issues such as supply chain information, please see Employees. management, value-based care systems, technology n we engage with suppliers through innovation, regulatory our supplier development program, considerations, and consumer product quality manuals, advocacy advertising. In FY2015, we events, roundtable discussions, also participated in a public and supplier diversity networking. workshop organized by the In FY2015, we worked with key FDA to identify and address suppliers to educate them on trade cybersecurity challenges and reform and its potential impact risks, such as device security, on medical technologies and the to the healthcare and public broader economy. By fostering health sector. wider support, we can increase our chances of moving trade reform n we engage stakeholders legislation forward. through our memberships in organizations. Last year, we joined Practice Greenhealth, a nonprofit member association committed to advancing sustainability throughout the healthcare ecosystem. We are also members of Healthcare Plastics Recycling Council (HPRC) where we work with other industry leaders to find sustainable recycling solutions for healthcare products.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Governance and Engagement 48 Employees Further, Together On Medtronic Leadership Programs with Kirk Monson, Senior Group Marketing Manager, Diabetes Working together is our “Medtronic leadership programs, including our Leadership model for success. And no Development Rotation Program and Emerging Leaders Program, partner is more important to had a tremendous influence on my leadership development and Medtronic’s success than our career aspirations at Medtronic. The greatest impact for me came employees. Kirk Monson on day one, when I instantly joined a network of highly talented, Guided by the fifth tenet of passionate, driven future leaders. I still regularly connect with my our Mission — to recognize cohort to discuss ideas, share successes and failures, and support the personal worth of our each other on our career journeys. employees — we invest strategically in policies and I have also grown from the access to senior leadership that these programs to attract, retain, programs provide. Formal and informal discussions have helped and develop exceptional, shape my thoughts on leadership and have given me unique diverse, and collaboratively insights and guidance into my career aspirations. Finally, the minded individuals. workshops, business simulations, and other program exercises gave me valuable opportunities for introspective leadership We expect a lot from our reflection in a real-world setting — something that isn’t possible employees, most significantly during a full-time MBA program. I have grown immensely from that they share our dedication being able to immediately put into practice what I have learned.” to bring valuable medical innovations to market that improve the lives of patients everywhere. In return, we provide opportunities for learning and advancement, and support them in giving back to their communities. We foster a healthy, safe, and respectful environment by listening to our employees and recognizing their achievements.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Employees 49 OUR GLOBAL business areas, including: new Our Approach to Union U.S. workforce is not currently WORKFORCE therapies, emerging markets, and Representation unionized. integrated health solutions. With the Medtronic complies with global laws To increase global access to recent acquisition of Covidien, we have regarding freedom of association and our lifesaving therapies and significantly expanded this global reach. DEVELOPING collective bargaining agreements, technologies, we support a EMPLOYEE POTENTIAL including participation in work councils. large, dedicated workforce At the end of FY2015, Medtronic Approximately 6 percent of our global across several strategic regions. employed 46,368 people across our With financial strength permanent workforce is represented by Looking ahead, we will continue global locations (not including Covidien increasingly tied to a committed, work councils and more than 3 percent to grow our workforce in ways employees). For more information on talented, and dedicated is covered under collective bargaining that support our strategic our workplace statistics, please see our workforce, investing in our Data Summary. agreements with trade unions. Our employees is an investment in our future.

CAREER DEVELOPMENT FOR ALL

MEDTRONIC GLOBAL FY2015 WORKFORCE Total* 46,368** 8 HRS $2.6 M 175 LEARNING ASSETS Asia-Pacific OF ORIENTATION IN TUITION OFFERED THROUGH 4,950 Canada TRAINING 792 AID online portal

Europe/Central Asia/ U.S. & Puerto Rico Middle East/Africa 27,086 9,754 DIFFERENTIATED Latin America 144 3,786 eLEARNING COURSES IN LEADERSHIP 5 5 PROGRAMS LANGUAGES *Does not include temporary or contingent workers. **Does not include Covidien workforce figures.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Employees 50 Knowing this, we have established aspirations. Additionally, we provide internal online learning portal provided “I’m amazed at all of the comprehensive, cutting-edge coaching, mentoring, and training. learning experiences to employees programs and incentives worldwide. Project Management, resources available on geared toward developing and All global Medtronic employees Emotional Intelligence, and Assertive the learning website! retaining the next generation have access to skill-based training Communication were among the top I can’t wait to take of Medtronic leaders. We strive to advance their capabilities, training courses taken. to maintain a diverse global competencies, and to excel in their advantage of the workforce that leverages positions. In FY2015, we spent more In FY2014, we embarked on a information and tools. I our employees’ different than $47 million on employee training substantial redesign of our high- want all of my coworkers backgrounds, experiences, and and development programs. This marks potential online program. With pilots affinities to generate creativity an increase of close to $2 million from completed in FY2015, we continue to learn about this too.” and innovation. By offering the previous year — a trend we will to enhance our program offerings. Medtronic Employee career development for all of our continue to build on. Our focus on targeted, individualized employees, as well as leadership development continues to prepare opportunities, we are building a Employee development begins on high-potential employees to be our diverse pipeline of leaders for our day one with at least eight hours of future business leaders. Preparation company. orientation training. This includes includes: our global requirements along with n emerging Leader Program for high- additional regional, business, and Training and Developing our potential individual contributors. functional programs. New managers Employees n and leaders undergo additional online being a Medtronic Manager Program We believe learning through eLearning orientation, and incoming for newly promoted and/or newly experience is the most effective mid-level managers are encouraged to hired managers. and rewarding method for career participate in a three-day instructor- n Leading with Impact Program for growth. Our philosophy is to led training program. senior managers and directors. emphasize work experiences Medtronic also continues to enroll that develop and stretch the In FY2015 we continued to expand our recent business management capabilities of our employees to career development offerings. With graduates in our MBA Leadership align with our business objectives an expansive library of 144 eLearning Development Rotation Program, and individual long-term career courses in five languages, Medtronic’s providing participants with two 12- to 18-month rotations in marketing Employee Training and Development functions within different business units or geographies. FY2011 FY2012 FY2013 FY2014 FY2015 Total Amount Spent on $63.5 $56.9 $53.0 $45.8 $47.6 Supporting Continuing Employee Training and Education Development ($ Millions) We also provide resources to support Average Amount Spent $1,431 $1,267 $1,137 $929 $985 our employees’ continuing education. per Employee (includes Our internal online learning portal temporary and contingent provides over 175 learning assets and workers) courses aimed at developing the core Number of eLearning 133 137 140 64 144 skills relevant to our business. This Courses Available includes the eLearning and classroom

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Employees 51 Further, Together Medtronic Women’s Network – Minnesota In FY2015, the Medtronic Women’s Network (MWN) in Minnesota launched “Lean-In Circles,” a professional development program for women at all levels of the organization. The goal of the program is to create opportunities for women to step up and take action with the help of a strong support system. Female directors and VPs lead the circles and are aided by managers and other business leaders. Highlights from FY2015 included: n establishment of 16 circles with more than 150 members total. n various circles intend to continue meeting after the conclusion of the program, demonstrating lasting impact for both the circle leaders and members.

The Medtronic Women’s Network — to advance women in global course offerings and additional the U.S. and Puerto Rico took part, (MWN) supports our office of Global leadership positions of director resources and tools, such as the receiving more than $2.6 million in Inclusion, Diversity, and Engagement and above. Cultural Navigator and Employee tuition assistance. (GIDE) in efforts to bridge this gap by Development Toolkit. In FY2015, attracting, developing, and advancing more than 30,000 employees Improving Performance Creating More Opportunities for talented women across the company. Management worldwide took advantage of Women The MWN leadership team comprises these resources. some of our most senior women Our employees depend on Gender balance is a priority for leaders and connects MWN “hubs” from consistent and transparent Medtronic also offers financial aid, Medtronic. Currently, women make around the world. This global Network feedback from managers, starting enabling employees to enroll in up 49 percent of our global workforce, brings together diverse perspectives with setting clear and aligned continuing education programs though this balance is not reflected in from our businesses, regions, and goals. They receive constructive outside the company. In FY2015, our senior management. geographies for one common goal feedback throughout the year, more than 900 employees in

Leadership Expectations Framework

Shape Engage Innovate Achieve We are committed to being We partner with and involve We are bold thinkers, creating new What we promise, we deliver: experts in our field, with a others, knowing that diverse ideas that bring forward our best results that consistently clear vision of where we are talent, skills, and perspectives lead solutions to benefit our patients, meet our highest standards. going and our plan to get to better outcomes. partners, and customers. there.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Employees 52 in addition to guidance on business, and leadership teams review the results accomplishments. Annual Career career, and development goals. and develop action plans to drive incentives and discretionary Development improvements in areas where we have pay for employees and their for all In FY2016, employee performance will the greatest opportunities. managers are also linked to be assessed on results, effectiveness successful completion of quality Initiative at executing plans, and demonstration In FY2015, more than 38,000 Medtronic and ethics training activities. A key driver in bringing of our four Leadership Expectations: employees completed the survey — a our Mission to life is our Shape, Engage, Innovate, and Achieve. response rate of roughly 83 percent, Our approach to compensation commitment to advancing and a 6 percent improvement from extends to all Medtronic career opportunities for Linking Performance to Ethical FY2014. Our overall engagement employees. For information on Behavior score increased from 77 percent to 80 executive compensation, see all employees. Career percent. We found that employees are Governance and Engagement. Development for All is an The way we conduct business sets increasingly confident about the future initiative we are launching us apart from our competition. We of Medtronic. Career opportunities and Offering Competitive in FY2016 to increase are a market leader and trusted training were the top themes cited by Benefits engagement, retention, and partner in the industry because of employees for improvement. ultimately business results. our commitment to ethical business Medtronic offers benefits practices. Every employee is expected Building on this feedback, we designed to improve quality of life Helping our employees to adopt Medtronic’s culture of established actions for FY2016 and and health to all global full- and understand how to navigate ethics and to conduct business with beyond, including our new Career part-time employees. Benefits their careers at Medtronic is dedication, honesty, integrity, and Development for All initiative. differ by country, comply with a critical part of our collective service. all relevant national regulations, success. In addition to our annual survey, and are explained by employee To embed this mindset companywide, Medtronic conducts, as necessary, education and information The Career Development employees conduct self-assessments pulse surveys to assess employee resources. We provide live of their leadership qualities including satisfaction. Over the course of the presentations and benefit for All initiative will provide modeling, demonstrating, and Covidien acquisition, we used these specialists who can answer a common framework for displaying ethical behavior. Managers surveys to gauge how informed both questions and solve problems, all employees, including read these self-assessments Medtronic and Covidien employees felt on-demand web-based education managers and other leaders, and evaluate employees on their throughout the process. tools, and our virtual, interactive and will be foundational to achievements in these areas during benefit counselor “Alex,” all our talent practices as we go annual performance reviews. of which are used to support COMPENSATING our global and select country- forward. Starting in FY2016, EMPLOYEES specific benefit programs. Typical our goal is to train managers LISTENING TO OUR benefits include: and employees to complete EMPLOYEES All Medtronic employees should share in our collective success, and fair and n health, dental, and vision mid-year and year-end insurance plans with coverage check-ins and to embed the Feedback goes both ways. We use competitive pay and benefits are crucial our annual Employee Engagement in attracting and retaining the most options for spouses, domestic new career development Survey to take the pulse of our talented individuals. partners, and children. framework and concepts into workforce and hear their concerns n Insurance, including life, performance management and ideas. Questions cover employee To ensure that we pay employees fairly accidental death, and short processes. engagement and inclusion, ethical we take into account industry and and long-term disability. behavior, and leadership and local market standards, our company’s management performance. Executive overall performance, and individual

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Employees 53 Awarding Our n flexible spending programs for Rewarding Outstanding our office of Global Inclusion, health and dependent care. Performance Diversity, and Engagement (GIDE) Successful n Paid time off, including sick, oversees initiatives that cultivate Recognition is an essential part of an inclusive environment. Integration maternity, bereavement, and aligning the organization around To celebrate the successful family leave, and unpaid time off for the actions and behaviors we value. paternity leave. Medtronic is committed acquisition of Covidien, and The global recognition program to fostering an inclusive n employee stock purchase program Recognize! provides the opportunity environment where capable, share in our future collective offering stock at a 15 percent for managers and employees to reward diverse talent develops and success, Medtronic was proud discount. fellow employees for demonstrating grows in pursuit of our Mission. to offer a one-time equity n tuition aid and other scholarship expectations that are grounded in We invest in specific strategies award to all global employees. opportunities for employees and our Mission. Last year, over 37,000 to increase our representation their children. employees received recognition of women and ethnically The stock option grant vests through this program, including more in 2018 and aligns with the n employee assistance program, diverse employees at all levels, which includes on-site childcare than 4,600 for achievements in ethical with emphasis on increasing fifth tenet of our Mission – to and fitness facilities, financial performance. representation within our provide employees the means consultation services, adoption and leadership teams (manager and to share in the company’s eldercare assistance, and counseling above). referrals. BUILDING AN INCLUSIVE success. WORKFORCE Employee Resource Groups We also offer competitive retirement Bringing people with varied and Networks plans, through our defined benefit and backgrounds, experiences, and contribution pension plans for global We facilitate connections affinities together in an inclusive and employees, in addition to 401(k) savings between diverse employees collaborative working environment plans for U.S.-based staff. Medtronic through our Employee Resource FY2015 Diversity is critical to our business success. matches a portion of the 401(k) savings Groups (ERG) and Networks, Diverse teams help stimulate new and Highlights plan based on company performance. which are voluntary, employee- innovative business ideas, and reflect n medtronic received a We also contribute 5 percent of a led communities. These support the views and needs of our global U.S. employee’s annual earnings in an an inclusive culture, bringing perfect score on the customer base. Aligned with our Equal investment account as part of our U.S.- together a broad network Human Rights Campaign’s Employment Opportunity (EEO) Policy, based defined contribution plans. of colleagues with common 2015 Corporate Equality backgrounds, facilitating Index, which recognizes development opportunities, and achievements in workplace encouraging best practice sharing across departments. Medtronic diversity and equality. has 14 ERGs and four Networks Female and Minority Representation at Medtronic n medtronic Senior Vice across our operations. In addition to the Medtronic Women’s President of Global FY2011 FY2012 FY2013 FY2014 FY2015 Network mentioned above, we Female 21,211 20,824 21,148 21,468 22,657 Quality, Luann Pendy, was have active participation in our recognized as one of the 50 Percentage of Females in Total 49% 49% 49% 49% 49% African Descent, Asian, and most powerful women in Workforce Hispanic Networks. technology by the National U.S. Diversity (Race/Ethnicity), 28% 28% 28% 29% 30% Excluding Puerto Rico Diversity Council.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Employees 54 Further, Together Overcoming Barriers to Working with Disability Finding and retaining work is an important element in enabling people with disabilities to lead normal, fulfilling lives. Recognizing this, Val Nauth, a production manager for Medtronic Perfusion Systems, in Brooklyn Park, Minnesota, went out of his way to act on our commitment to workplace inclusion.

When Medtronic partnered with employment specialists Vocational Rehabilitation Services (VRS) and a staffing consultancy, Indrotec, last year, our Human Resources team worked with them to place an individual on Val’s team whose disability made it difficult to keep steady work. When an assembly opportunity became available, it appeared to be a perfect fit. Now, after a successful stint as a contract worker, the new recruit is on track to become a full-time employee, receiving wage increases and access to full Medtronic benefits.

“Give us the candidates,” says Val, “and there is no limit to what we can do.”

Our business-led diversity and ethnically diverse employees n Identifying injury trends at all sites n accelerating global employee networks and resource groups across the company. and setting objectives and specific training on environmental, help our organization build, projects and activities to reduce the health, and safety (EHS) develop, and accelerate key talent risk of injuries. requirements. This includes by: ENSURING SAFETY AND new global EHS training WELLNESS n reducing injury rates stemming for field/sales, distribution n Supporting the organization from ergonomic stress. Activities centers, administrative offices, in increasing diverse/female Employee safety is a top priority include integrating ergonomic and R&D labs on preventive representation in leadership at Medtronic. By investing in a safe design, implementing risk mitigation measures and protective positions. working environment and employee tools, providing training and practices for risks such as n Partnering with HR to ensure health and wellness initiatives, we ergonomic assessments, and infectious diseases, ionizing that our diversity and inclusion protect our employees and our developing a web-based ergonomic radiation, and emergency efforts are effective and company. training program. response. sustainable. n aligning our diversity and Promoting Workplace Safety n establishing safe driving programs We continue to make strides in inclusion efforts with our for our field and sales employees workplace safety performance. business priorities. To keep us on track, in 2013 we set 2020 who spend significant time driving In FY2015, there was one health and safety improvement goals n advising on programs and for work. work-related traffic fatality policies to attract, develop, in four areas, including ergonomics and at Medtronic. Our employee and advance talented women safe driving. Our goals include: incident rate was 0.63 incidents

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Employees 55 OCCUPATIONAL HEALTH AND SAFETY 1.13 1.05 1.03 Ready, Set, Go! .87 During the spring 2015 Global Wellness Challenge, 5,815 employees recorded nearly 1.7 billion steps, or roughly 6 million minutes of Employee Injury .63 Incident Rate* exercise, on their way to losing almost 6,000 pounds. This is the Employee Lost/ .51 .47 Restricted Workday .45 Case Rate** .39 equivalent of walking 33 times around the world! .27 “Eating healthier, drinking more water, exercising more — at least 6 days a week. My blood pressure is now normal. I am so delighted, I can’t FY2011 FY2012 FY2013 FY2014 FY2015 *The number of work-related injuries or illnesses serious enough to require treatment beyond first-aid, per 100 employees working express myself enough!” a full year. **The number of work-related injuries or illnesses serious enough to cause an employee to miss one or more work days or to have one or more work days of restricted duty, per 100 employees working a full year. Medtronic Employee Injury and lost/restricted rates do not include portions of Asia, eastern Europe or Latin America sales teams. per 100 employees, and our well-being generates concrete returns smoking, poor diet, and lack of exercise behavior. More than 10,000 employee lost/restricted workday in healthcare savings and increased that can lead to high blood pressure and employees across 32 countries case rate was 0.27 lost days per workforce productivity. Estimates obesity. Initiatives include: participated. 100 employees. Both are down suggest that for every $1.00 we devote n healthy Habits, which supports goal substantially from previous years. to these initiatives, we will see a $2.50 setting, tracking, and improving return. SUPPORTING health EMPLOYEE Keeping Our Employees and n global Wellness Challenges Business Healthy In 2015, we introduced Healthier ENGAGEMENT IN OUR Together, an enhanced global wellness n health assessments, screenings, COMMUNITIES We see tremendous value in program. Available to employees and and vaccinations encouraging healthy lifestyles their spouses in all countries, the n weight management and resilience We are very proud of our across our global workforce. program focuses on engagement in programs employees who give back to Investing in programs that healthy activities. As a healthcare the communities where we n Smoking cessation resources improve employees’ physical, company we want to be healthy from operate. We support community n health improvement programs emotional, social, and financial the inside out, reducing risk factors like engagement efforts through n nutritional education three signature programs — n rewards and incentive programs Global Innovation Fellows, Project Healthier Together Global Reach 6 Employee Volunteerism, and n employee assistance programs FY2011 FY2012 FY2013 FY2014 FY2015 designed to help employees Global Matching Grants and Volunteer Grants. Countries with Program 2 12 19 43 43 solve workplace and/or personal Access challenges Global Innovation Fellows Percentage of Employees 65% 82% 85% 98% 98% To encourage maximum employee with Program Access participation, the program features a Expanding global access to Employees Completing 21,559 25,324 24,792 23,521 24,542 comprehensive Activities Hub and a healthcare is a top priority, both Health Questionnaires Healthy Incentives reward program. philanthropically and for our During the year we also launched business. We work with expert Employees Receiving 4,144 3,736 3,513 4,560 1,535 nonprofits in underserved Personal Health Coaching several Global Wellness Challenges to encourage physical activity and healthy

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Employees 56 Further, Together Giving Hope and Healthcare Access to Vietnam In October 2014, five Medtronic Global Innovation Fellows teamed up with Project HOPE to improve health access for underserved communities in Quang Tri Province in Vietnam. While 140 Commune Health Stations exist to deliver preventive and primary healthcare, local people were shunning these facilities due to inconsistent patient treatment and poor medical equipment.

Project HOPE and the Medtronic team held more than 20 meetings with 90 local stakeholders to find solutions that better address the area’s primary care needs. To improve public perception and use of the health stations, the team recommended improving local health infrastructure and equipment and providing effective staff training. They also called for the introduction of full-service, in-clinic pharmacies to meet patient needs, increase traffic, and generate revenue.

To test out their approach, the team suggested piloting their ideas in two to three health stations.

“Understanding what healthcare challenges remain at this level of the healthcare pyramid is eye- opening. These villagers struggle to vaccinate their children and provide clean water and safe, nutritious food to their families. For the Medtronic Mission to reach these patients, we need to think differently about healthcare innovation.”

Medtronic Fellow

regions to address local health Project 6 Employee dedicating 29,000 volunteer hours n Dubai, United Arab Emirates: challenges in innovative ways Volunteerism throughout the month to helping their Employees helped refurbish that also inform our business local communities. a local community center for development. In FY2015, during Each June, Medtronic employees children with special needs. come together for a month-long global its second full year of operation, Medtronic Philanthropy rewards n Ontario, Canada: 22 employee Medtronic Philanthropy’s Global volunteer effort in support of the Project 6 teams that attract the most teams each used $100 to Innovation Fellows program sixth tenet of the Medtronic Mission employees while achieving the greatest “multiply good” — impacting paired 28 employees from — to maintain good citizenship as a local impact. This year’s winners, more than 2,500 people along around the world with global company. showcased below, each received a the way. nonprofits to work on projects in $10,000 Impact Grant to donate to a n Tokyo, Japan: Employees took In FY2015, more than 8,880 team Bangladesh, Bolivia, Colombia, nonprofit of their choice. part in fundraisers for disaster members across 35 countries Rwanda, the United States, and relief and cleanup and repair participated in Project 6 activities, Vietnam. projects. Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Employees 57 Further, Together Paying It Forward in Toronto with Project 6 When 200 eager Medtronic employees came together on the streets of Toronto to “multiply good,” nobody expected the results we achieved. Twenty-two teams, each armed with $100 and a map, were turned loose on the city with the challenge to “pay it forward.”

One team simply purchased sandwiches to distribute to local homeless in a nearby park. Another purchased and sold water bottles at a corner to more than triple their funds. In only a couple of hours the teams made significant strides, including raising money for a hospital fund, buying supplies for a homeless shelter, and even helping a local school plant a community garden.

Over the course of an afternoon, our 22 teams managed to impact the lives of more than 2,600 people and raised over $6,000 for local charities. As one Medtronic participant explained, “It really puts our lives into perspective and inspires us to do more in the community.”

n Memphis, United States: communities around the world, we donations are matched up to $100,000. Learn more about Project 6 Almost 1,500 employees offer a global matching grant program. Medtronic added to this generous volunteer efforts. turned out to support Medtronic Philanthropy makes dollar- support, making nearly $20 million nonprofits including Food Bank for-dollar contributions, ranging from in matching donations to nonprofits and Girls Inc. $25 to $100,000, for donations our chosen by employees that support employees make to approved charities. communities in need around the world. Global Matching Grants In FY2015, we received approximately In addition, we provide volunteer To promote good citizenship, $25.2 million in employee charitable grants to global employees who acknowledge employees’ contributions (including retirees and display outstanding commitments to passions, and increase our Medtronic, Inc. board members) for charitable causes. For every 25 hours on-the-ground impact in matching consideration. Employee of service an employee donates to a qualifying nonprofit, we award that same nonprofit a $500 grant. In FY2015, Project 6 Impact through the program, 786 employees FY2011 FY2012 FY2013 FY2014 FY2015 raised nearly $515,000 for nonprofits. Number of Volunteers 2,000 4,200 5,878 6,365 8,880 Number of Countries 22 36 36 30 35 Number of Employee-led 84 255 483 215 274 Projects

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Employees 58 Environment Further, Together Using Cutting-Edge Technology to Power Our Facilities Fuel cells are innovative low-carbon energy solutions that reduce the climate impact of energy production. In November 2014, We apply our innovative we proudly installed our first natural gas fuel cell system at our spirit to reducing our facility in Santa Rosa, California. Provided by Bloom Energy, the environmental impact system generates low carbon energy by using fuel cells to convert by proactively managing natural gas into electricity. Each year, the fuel cell system will environmental, health, and cut over 500 metric tons of carbon emissions generated by our safety issues across our site — the equivalent of taking 116 cars off the road — and save value chain. We make sure $2.3 million. As an added benefit, it will reduce electricity-related these issues are taken into account in all our business water usage by more than 3 million gallons. decisions, from product “This installation symbolizes Medtronic’s long-standing design, to manufacturing, to facility operations. As commitment to energy conservation and doing right by the part of our commitment, environment,” says Erik Kunz, Medtronic’s Director of EHS and we’ve set ambitious goals to Facilities in Santa Rosa. “We’re pleased to be the first facility in our further reduce our climate company to adopt this exciting technology and bring its value to impact, water use, and waste our triple bottom line.” generation.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Environment 59 VVVAAALLLUEUEUE C HAICCHAIHAIN NN PPRRODUODUCCTT OPEROPERAATIONSTIONS DODODOCCCUMENUMENUMENTATATATION,TION,TION, DIDISSTRITRIBBUTIONUTION DISPDISPOOSSALAL DDEESIGNSIGN LLLABELING,ABELINGABELING AND ANDAND ANDAND 11 22 33 PPPRRRODUODUODUCCCTTT 44 55 PPPAACKCKAAGINGGING RREECCYYCLINGCLING

AASSSSEESSSS:S:S: REDUCEREDUCE IMIM IMPPPAAACCCTTSTS SFFR RFOM:OM:ROM: SSAAVEVE M MMAAATERIATERIATERIALLSSL S OPTIMIZE:DIDISSTRITRIBBUTIONUTION OPTIMIZE:OPTIMIZE: CCCLLLOOOSESESE THETHETHE LLLOOPOOPOOP BBBYYY::: EHSEHS IM IMPPAACCTTSS ENERENERGGYY & & GHG GHG EMI EMISSSIONSSIONS THTHRROUGH:OUGH: HUBHUB L LOOCCAATIONSTIONS RECYCLINGRECYCLINGRECYCLING USED USEDUSED MMAATERIALSTERIALS OF OF C CONCERNONCERN WWAASSTTEESS DIGIDIGITTALAL P PRRODUODUCCTT TTRRANSANSPPOORRTT EFFICIENCY EFFICIENCY PPPRRRODUODUODUCCCTTTSSS DODOCCUMENUMENTTSS WWAASSTTEESS AND AND EMI EMISSSIONSSIONS WWAATERTER USE USE PPACKAGINGACKAGING REDU REDUCCTIONTION PPACKAGINGACKAGING AND AND ENDEND OF OF LIFE LIFE RECYCLEDRECYCLED M MAATERIALSTERIALS

MANAGING OUR n Integrate EHS into all business in the distribution centers and sales with Covidien, we continue to ENVIRONMENTAL, decisions organization. To enhance our EHS evaluate and standardize best management, we participate in the practices across our combined HEALTH, AND SAFETY n communicate our policy to stakeholders Carbon Disclosure Project, and are organization. PERFORMANCE members of U.S. EPA’s Energy Star n educate our employees Program. To ensure conformity with Environmental, health, and n maintain an EHS infrastructure to internal and external obligations, safety (EHS) risks can impact our ensure that the proper resources Furthermore, we require our facilities Medtronic has established the company’s bottom line, making and accountability are established to to meet company EHS standards practice of conducting EHS audits EHS strategy an important factor meet this policy that go beyond many country at our facilities. For a minority in our business success. Knowing regulations. Medtronic standards of our facilities with the highest this, Medtronic implements The Medtronic EHS team and the require the implementation of an potential risk of EHS challenges, rigorous EHS management Business EHS Council oversee our EHS EHS management system based on we support the additional cost systems across our factories and Policy and conduct audits to ensure international EHS Management System of formal certification to EHS offices worldwide. Our EHS Policy compliance with EHS regulations. In Standards ISO 14001 and OHSAS Management Systems Standards outlines that we: addition, these groups provide input 18001. The Medtronic standards ensure ISO 14001 and OHSAS 18001. n comply with all applicable laws and approval for EHS strategies, that our EHS managers follow best and regulations performance metrics, risk identification practices, which in turn reduce risk, and management, and sustainability n establish objectives and increase operational efficiencies, and opportunities. A Regional EHS targets for improvement save costs. As we manage integration Council manages global EHS risks

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Environment 60 FY2015 Performance MEETING BEST PRACTICE STANDARDS: In FY2015, 17 of our facilities MEDTRONIC ISO 14001 AND/OR OHSAS 18001 CERTIFIED SITES worldwide held one or both certifications (see map). Our Santa Rosa, California, facility, became ISO 14001 certified this year. In addition, our Tolochenaz, Switzerland, site completed an ISO 14001 surveillance audit for recertification and found zero nonconformity issues.

MINIMIZING OUR OPERATIONAL FOOTPRINT Our commitment to reducing the environmental impact of our operations is evident in our ambitious 2020 Environmental Performance Goals. Our continued progress in FY2015 toward these goals — which cover energy use and carbon dioxide emissions, waste, and water use — is shown below.

2020 Environmental Performance Goals FY2013 FY2014 FY2015 % Change 2020 (Baseline) FY2013 to FY2015 Goals* Non-Regulated Waste (Tonnes/$Billion Revenue) 772 7627 735 -5% -15% Regulated Waste (Tonnes/$ Billion Revenue) 99 1078 107 +8% -10% 17SITES Energy Use (MWh/$ Million Revenue) 31.9 31.3 29.6 -7% -15% ISO 14001 CO Emissions (Tonnes/$ Billion Revenue) 12 11.8 11.1 -7% -15% 2 CERTIFIED Water Use (Cubic Meters/$ Million Revenue) 75 77 70 -6% -10% * All percentage reduction goals are based on a FY2013 baseline 7 Restated from 2014 Integrated Performance Report due to internal validation processes 8 Restated from 2014 Integrated Performance Report due to internal validation processes

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Environment 61 Reducing Energy Use and In conjunction with our Corporate FY2015 Performance ENERGY USE Greenhouse Gas Emissions EHS team and Corporate Facilities employees, Medtronic sites pursue Our energy conservation and 600,000 50 Climate change is a major purchasing projects, primarily in North 45 energy conservation practices that 500,000 40 global challenge to society, America, drive significant savings. In reduce our short and long-term energy 400,000 35 and its impacts also present a FY2015, we saved over 7,000 MWh and 30 use. These include: energy efficient 300,000 25 potential threat to the resilience saw more than $2.2 million in savings, MWh lighting, ventilation systems and 20 200,000 of our future operations and equipment, and automated building rebates, and cost avoidances. 15 100,000 10 supply chain. In pursuit of our Revenue MWh/$Million controls. 5 2020 goals, we are working to 0 0 Managing Waste FY2011 FY2012 FY2013 FY2014 FY2015 conserve energy and reduce our We also follow best practices for energy greenhouse gas emissions (GHG) efficient equipment in new building We continually seek ways to reduce across our operations. construction and remodeling projects. our waste generation and divert waste We have buildings certified to LEED or from landfills. Our facilities worldwide The majority of Medtronic’s Green Globes standards in the United have pursued a range of initiatives to operational GHG emissions are States, Canada, and South Africa. meet our 2020 goal of reducing total the result of energy use by our waste generation by 15 percent from CO EMISSIONS facilities and volatile organic FY2013 levels. These include: reducing 2 compounds (VOCs) released Installing Renewable Energy production scrap rates, reducing 250,000 20 18 during production. We use As part of our energy conservation packaging, eliminating paper use, 200,000 16 electricity, natural gas, liquefied strategy, our businesses are tapping and increasing our overall recycling 14 petroleum gas, and fuel oil in our opportunities. 150,000 12 into clean, renewable energy solutions 10 facilities worldwide. In FY2015, – including solar energy – to support Tonnes 100,000 8 we used 524,000 megawatt- Our recycling initiatives play a 6 our environmental goals. During 50,000 4

hours (MWh) of energy, creating significant role in our efforts to support Revenue Tonnes/$Million FY2015, we generated nearly 700 MWh 2 approximately 197,000 metric of onsite renewable energy at our responsible waste management. In 0 0 FY2011 FY2012 FY2013 FY2014 FY2015 tons of carbon dioxide equivalent. locations in Italy, South Africa, Ireland, FY2015, Medtronic recycled more Our VOC emissions in FY2015 and California. than 7,600 metric tons of waste — were 129 tons. accounting for 51 percent of our total

LEDs Light the Way to Energy Savings in Minnesota Partnering with Xcel Energy, each of Medtronic’s Minnesota facilities participated in an energy efficiency VOC EMISSIONS program. The program identified parking ramps at Medtronic’s Operational Headquarters and Mounds View 160 16 facility as priority areas to reduce energy use and save costs. In December 2014, these facilities installed 140 14 984 LED fixtures in place of metal halide lamps. Taking advantage of the parking ramps’ natural daylight, the 120 12 team also installed photocell sensor around the perimeter of the garage. When sufficient daylight is detected, 100 10 80 6 the lighting turns off. Motion sensors were also installed on the lights in the interior of the garage, which Tonnes 60 6 save energy by activating only when movement is detected. The Parking Ramp Light Fixture Replacement 40 4 20 2 Project was a huge success. Combined energy savings in both facilities conserve more than 1,500 MWh per Revenue Tonnes/$Billion 0 0 year and result in over $154,000 total savings each year from energy reduction and preventive maintenance. FY2011 FY2012 FY2013 FY2014 FY2015 With these cost savings, the improvements will pay for themselves in less than nine months — a sustainable decision for both the business and the environment.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Environment 62 “We take pride in our waste generation. We have adopted FY2015 Performance Conserving Water a number of innovative recycling proactive approach and programs. We reclaim raw materials — In FY2015 Medtronic generated While water use in our operations incorporate the mantra including metals and plastics — used in approximately 14,900 metric tons of is relatively low, we still recognize of reduce, recycle and our products, process chemicals, and waste comprising 13,000 metric tons the need to do our part to compost food waste in our cafeterias. of non-regulated solid waste and 1,900 conserve water for the greater reuse in our package metric tons of regulated solid waste. good. Our 2020 goal is to reduce designs. Our efforts have In addition, we have identified product Non-regulated waste consists primarily our water use 10 percent from produced smaller, more stewardship as an area of importance of general office and cafeteria wastes. our 2013 baseline. To accomplish to our environmental impact. During Regulated waste includes production this, we are pursuing a range of efficient, consumer- FY2015, we completed research on materials such as metals and chemical- conservation initiatives. These friendly packages. establishing a product stewardship related wastes. Of the total waste include: improving efficiencies in Medtronic’s packaging is program at the company, which generated, approximately 7,600 metric our production line processes, included the development of criteria tons or 51 percent was recycled. installing landscape and irrigation the first thing customers for determining product sustainability, system upgrades, and updating see. Our focus on a potential product scorecard, and While we have been successful in our heating and cooling systems. sustainability impresses the framework for a pilot program maintaining our regulated waste at In FY2015, we used more than 1.2 that we hope to launch in FY2016 less than 15 percent of our total waste million cubic meters of water, a upon them the with three products. Through design generation, FY2015 saw an increase decrease of more than 5 percent importance our company innovation, we aim to minimize the life of 8 percent in our rate of regulated on the previous year. places on not only the cycle footprint of our products and waste generation due to changes in packaging. our product and related manufacturing health of our customers, processes. Going forward, Medtronic is but also the well-being of working to identify and target specific processes and waste streams to further our planet.” reduce our regulated waste in line with David Knutson, CRHF Global Package our stated goals. Engineering and Labeling Team

NON-REGULATED WASTE REGULATED WASTE RECYCLING WATER USE

2,000 160 1,400,000 120 14,000 1200 8,000 80% 1,800 140 1,200,000 12,000 7,000 70% 100 1000 1,600 120 1,400 6,000 60% 1,000,000 10,000 100 80 800 1,200 8,000 5,000 50% 800,000 1,000 80 600 4,000 40% 60 6,000 600,000 Tonnes 800 60 Tonnes Tonnes 3,000 30%

400 Cubic Meters 40

600 % Recycled 4,000 40 400,000 400 2,000 20% 2,000 200 20

Tonnes/$Billion Revenue Tonnes/$Billion 20 200,000

200 Revenue Tonnes/$Billion 1,000 10% 0 0 0 0 0 0% 0 0 Revenue Cubic Meters/$Million FY2011 FY2012 FY2013 FY2014 FY2015 FY2011 FY2012 FY2013 FY2014 FY2015 FY2011 FY2012 FY2013 FY2014 FY2015 FY2011 FY2012 FY2013 FY2014 FY2015

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Environment 63 EXTENDING PRODUCT For example, we have developed ENGAGING EMPLOYEES have participated in sustainability LIFE reclamation programs for pacemakers, initiatives. These include defibrillators, and neurostimulators, We expect and encourage our installing desk-side recycling, Our concern with the which contain sought-after precious employees to support sustainability maximizing power-saving environmental impact of our metals that can be reused. Through initiatives to reduce Medtronic’s overall options on personal computers, products continues beyond these and other reclamation initiatives, environmental impact. To encourage reducing manufacturing and their delivery to customers and in FY2015 we prevented disposal of employee participation, we promote packaging waste, and reducing patients. We consider product more than 720 metric tons of waste and Go Green for Life, an environmental carbon emissions through use stewardship to include extending achieved more than $900,000 in cost awareness program available to all of alternative transportation. In the life of our products, many of savings. employees. Through Go Green for Life addition, we recognize teams that which contain valuable materials. and other projects, our employees contribute to our EHS initiatives through the Medtronic EHS Sustainability Award.

Further, Together Problem Solving for the Planet Creative problem solving can shrink our environmental footprint, make working conditions safer, and save on costs. Each year we celebrate individuals and teams who produce such creative solutions. Winners of FY2015’s Sustainability Awards this year are showcased below: n our Cardiac Rhythm and Heart Failure team in Mounds View, Minnesota, reduced paper use by promoting electronic patient registration and administration. The initiative eliminated 13.5 million sheets of paper and will save $750,000 each year. n the Medtronic Electronic and Component Center in Brooklyn Center, Minnesota, manufactures batteries and related components critical to the function of many of our lifesaving devices. At this site, EHS team members successfully streamlined the production process. These efforts reduced manual labor and cut the site’s employee injury rate by 60 percent from FY2012 to FY2014. The process saves more than $2 million each year. n our EHS team in Fort Worth, Texas, which manufactures surgical instruments, staged creative awareness-raising events on employee safety and wellness. This led to a reduction in injury rates by 50 percent in just one year. n team Medtronic in Portugal created a fully electronic process for commercial proposals across all business and product lines. Their innovation will save more than 5 million sheets of paper annually. “In addition to improving EHS performance and culture, EHS sustainability efforts frequently align well with operational goals — improving site profitability by reducing non-value-added movements, activities, and waste. A comprehensive sustainability program improves operational performance and increases shareholder value.” Mark Horton, Senior EHS Manager, Medtronic Electronic and Component Center

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Environment 64 Supply Chain Further, Together Medtronic takes particular pride in its partnerships with diverse suppliers.

One such supplier is JIT Energy Services, a full-service energy management company that helps companies target energy saving We aim to extend the values put forth in our Mission strategies. JIT’s ownership is a certified minority and women- beyond our own operations owned business. and into our supply chain. By partnering with suppliers, we In 2007, JIT began working with Medtronic to provide a solution champion their high ethical for energy and water tracking. Over the eight-year partnership, standards, product quality, JIT has developed into an important partner in Medtronic’s energy health and safety, worker management — supporting Medtronic’s sites across the globe. rights, and environmental responsibility. This year marked a number of exciting achievements for JIT Energy Services and Medtronic. Among a plethora of energy efficiency projects completed, more than 1,000 light fixtures in parking structures at Medtronic’s Operational Headquarters and Mounds View facilities were replaced with LED systems. This project alone decreased Medtronic’s energy use by 1,500 MWh annually. Additionally, JIT worked hand in hand with Medtronic on developing innovative renewable energy solutions.

The partnership has been fruitful for both companies. Owner Jamie Aragon notes, “The opportunities for growth and service expansion presented by Medtronic have greatly benefited JIT.”

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Supply Chain 65 OUR APPROACH Our product quality program is built on: We expect all vendor companies For more information about to operate ethically. This means responsible sourcing, please see n our Supplier Controls Policy, which A robust and reliable supply chain following all applicable laws related our website. addresses risk management, is critical to our business. It allows to governance, environmental evaluation and selection, us to produce and deliver the responsibility, workplace health and performance, monitoring, and Materials of Concern medical devices and therapies safety, and human rights. Key issues for certification in our supplier base. on which our customers and our industry include compliance with To address the environmental and millions of patients depend. We n Our Supplier Quality and Excellence local labor laws relating to minimum social impacts of the materials build long-term partnerships Manual, which all suppliers must wage, overtime, and maximum working in our products, Medtronic with established suppliers that follow. hours. follows all applicable local and share our commitment to high n training provided to suppliers country-specific regulations. standards. through our supplier development As we integrate with Covidien, we We also follow two EU directives program. are assessing the practices of both — Restriction of Hazardous Across our business, we source n direct Supplier participation in our companies to develop a consolidated Substances (RoHS) and from approximately 59,000 Design, Reliability, Manufacturability and comprehensive approach to Registration and Authorization suppliers in 107 countries (DRM) process, which ensures responsible sourcing. Moving forward and Evaluation of Chemicals spanning North America, Europe, standard product performance. we expect to leverage leading practices (REACH). As part of our product the Middle East, Asia, and from both companies to maintain and design process, we attempt to Australia. In FY2015, we spent enhance our sustainability standards minimize the related materials of $6.7 billion with suppliers globally. SOURCING RESPONSIBLY for suppliers and supplier risk- concern. assessment process. Responsible supplier management is Conflict Minerals ENSURING PRODUCT more than a commitment we make As a first step, in FY2015, we began QUALITY to our customers. It also allows us to tracking which of our top 100 vendors Some of our products contain deliver benefits to the communities — representing approximately 40 conflict minerals — tin, tungsten, Our partnerships with suppliers where we source materials, services, percent of our total spend — produce tantalum, and gold — which are are essential in delivering the and labor. a sustainability report. We found that commonly sourced from areas of quality products that drive nearly 30 percent do. armed conflict in the Democratic Medtronic’s success. We provide direct suppliers with protocols, training, and support to ensure that regulatory and self-imposed SUPPLY CHAIN SPEND As of the end of FY2015, 98 quality standards are consistently ($ in Millions) met. Our top priority is to avoid percent of sourcing and supply supplier error that can impact Australia $54.9 Japan $100.7 chain management teams patient health and damage our Canada $77.4 Mexico $55.2 completed comprehensive reputation. China $143.2 Netherlands $129.7 Supplier Diversity eLearning France $93.3 Singapore $31.4 training. Germany $160.9 Switzerland $139.6 Ireland $153.5 U.S. $2,676.3 Israel $10.3 Other $2,881.5 Total Spend: $6,707.9

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Supply Chain 66 Republic of Congo and n respond to requests for additional diversity, and joining initiatives that an eLearning platform. These neighboring countries. Medtronic information, and support supplier diversity beyond our trainings are now being pushed supports, and strives to comply n Ensure traceability of conflict business. out to legacy Covidien sourcing with the regulations established mineral supplies. employees. by Section 1502 of the U.S. We proactively seek to find and engage Dodd-Frank Act, which requires Further details are available in our with diverse suppliers through outreach We champion supplier diversity companies to disclose conflict Conflict Minerals Policy. at tradeshows and networking events. across the business community minerals. For calendar year 2014, These include but are not limited through membership and we were unable to obtain the to: the National Minority Supplier sponsorship of advocacy groups. necessary information from all BUILDING STRENGTH Development Council’s (NMSDC) We also contribute through board relevant suppliers. Therefore THROUGH DIVERSITY Annual Conference, National Women’s leadership and volunteering we were unable to determine Business Enterprise Council (WBENC) for organizations with diversity whether all our products are We are committed to collaborating with Business Fair, National Veteran’s missions. Examples include: conflict free. suppliers from diverse backgrounds, Small Business Engagement (NVSBE) the National Minority Supplier including small businesses and those conferences, and small business and Development Council (including A cross-functional team — owned by women, minorities, and chamber of commerce events. The the Healthcare Industry Group, composed of sourcing, supply veterans. Our diverse suppliers bring Medtronic Supplier Registration Portal Consumer Products Group, and chain, finance, legal, and others innovative ideas and broaden our allows us to effectively integrate Supplier Diversity Advocacy — works closely with executives perspective. In turn, this supports our diverse suppliers into our standard Council), the Women’s Business to implement our Conflict Mineral Mission. procurement process. Enterprise National Council, Policy and strategy. We expect the Metropolitan Economic our suppliers to comply with the Our Supplier Diversity Team, Supplier We promote supplier diversity through Development Association Dodd-Frank Act and remove Diversity Steering Committee, and companywide awareness sessions (MEDA), the North Central conflict minerals from our supply executive management lead our and internal training for relevant Minority Supplier Development chain to all extents possible. To Supplier Diversity Program. Our employees. Sourcing and select supply Council and Corporate track their efforts, we require approach includes: identifying suitable chain employees are required to take Roundtable, Diversity Information relevant firms to: new diverse suppliers, leveraging a comprehensive training on supplier Resources, and Itasca’s Executive existing diverse supplies, raising diversity and participate in a webinar Council and Business Bridge. n complete an annual survey internal awareness about supplier on available tools and resources via disclosing the origin of any conflict minerals used,

U.S. Diverse Supply Chain Spend by Category ($ in millions) FY2011 FY2012 FY2013 FY2014 FY2015 $ Spend % U.S. $ Spend % U.S. $ Spend % U.S. $ Spend % U.S. $ Spend % U.S. Spend Spend Spend Spend Spend Small Business $1,403.0 33% $1,191.3 27.9% $1,175.0 28.9% $1,069.0 30.7% $1,102 29.91% Veteran-Owned Business $50 1.2% $45.2 1.1% $35.4 0.9% $42.9 1% $49.7 1.35% Minority-Owned Business Enterprise $94.1 2.3% $108.3 2.5% $106.6 2.6% $131.4 3.8% $149.0 4.04% Women-Owned Business Enterprise $183.6 4.4% $167.1 3.9% $166.0 4.1% $74.2 2.1% $83.1 2.26%

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Supply Chain 67 Awards and VALUE TO SOCIETY WORKING RESPONSIBLY Recognition Business Environment

n ranked 55th among 150 U.S. n ranked 50th among the 500 largest companies Forbes’ America’s Most publicly traded U.S. companies and Reputable Companies in 2014 80th among the largest publicly In FY2015, Medtronic was traded companies globally on recognized by a variety n Included in the S&P500 Dividend Newsweek’s Green Rankings Aristocrat’s Index of stakeholders for our performance, policies, Diversity and Inclusion Corporate Sustainability practices, and programs n received 100 percent rating on through which we create n named to the 2015 Dow Jones Corporate Equality Index, which value for society and operate Sustainability North American Index recognizes best practices in responsibly. This includes recruiting and maintaining a diverse n Listed as a member of the workforce those that honor our business FTSE4Good Index Series performance, community involvement efforts, Workplace employment programs, and n ranked 4th on Business Insider’s environmental initiatives. Most Meaningful Companies to Listed below are some Work For highlights of the awards, n ranked 14th in Computerworld rankings, and recognitions we Magazine rankings of Best Places to received. Work in IT

For a complete list of our awards and recognitions in FY2015, visit our website.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | Awards and Recognition 68 FY2015 Data Summary FY2015 Medtronic FY2015 Data Summary Data Summary VALUE TO SOCIETY FY2011 FY2012 FY2013 FY2014 FY2015 Access Research and Development $ Million $1,472 $1,490 $1,557 $1,477 $1,640 Investment % of total revenue 9.5% 9.2% 9.4% 8.7% 8.1% Financial Strength ($ Millions) Net Sales Total $15,508 $16,184 $16,590 $17,005 $20,2611 U.S. $8,872 $8,828 $9,0952 $9,2472 $11,305 Non-U.S. Developed $5,259 $5,690 $5,634 $5,652 $6,372 Emerging Markets $1,377 $1,666 $1,861 $2,106 $2,584 Net Earnings as reported (GAAP) $3,096 $3,617 $3,467 $3,065 $2,6751 Net Repurchase of Common Stock $1,055 $1,1263 $980 $1,246 $1,271 Dividends to Shareholders $969 $1,021 $1,055 $1,116 $1,337 Additions to Property, Plant, and Equipment $501 $484 $457 $396 $571 Community Investments ($ Millions) Medtronic Foundation Giving $30.6 $32.9 $33.7 $28.2 $47.0 Corporate Cash Contributions $19.2 $22.3 $21.7 $27.7 $31.3 Product Donations $10.1 $7.8 $9.0 $11.1 $11.5 Philanthropic Contributions as a % of Global Pretax 1.4% 1.5% 1.5% 1.5% 1.9% Profits WORKING RESPONSIBLY FY2011 FY2012 FY2013 FY2014 FY2015 Employees (see Global Workforce Data below for additional details) Global Workforce 43,234 42,471 43,091 43,707 46,368 Percentage of Females in Total Workforce 49% 49% 49% 49% 49% U.S. Diversity (Race/Ethnicity), Excluding Puerto Rico 28% 28% 28% 29% 30% Total Amount Spent on Employee Training and $63.5 $56.9 $53.0 $45.8 $47.6 Development ($ Million) Employee Injury Incident Rate4 1.13 1.05 1.03 0.87 0.63 Employee Lost/Restricted Workday Case Rate5 0.51 0.47 0.45 0.39 0.27 Environment6 Non-Regulated Waste (Tonnes/$ Billion Revenue) 814 798 772 7626 735 Regulated Waste (Tonnes/$ Billion Revenue) 94 97 99 1076 107 Energy Use (MWh/$ Million Revenue) 31.6 31.6 31.96 31.36 29.6

6 CO2 Emissions (Tonnes/$ Billion Revenue) 14.9 14.9 12 11.8 11.1 Medtronic 2015 INTEGRATED PERFORMANCE REPORT | FY2015 DAta Summary 70 Medtronic FY2015 Data Summary (Continued) WORKING RESPONSIBLY FY2011 FY2012 FY2013 FY2014 FY2015 Volatile Organic Compound Emissions 8.3 8.4 7.5 9.3 7.3 (Tonnes/$ Billion Revenue) Water Use (Cubic Meters/$ Million Revenue) 72 74 75 77 70 1 FY2015 based on Medtronic fiscal year as reported and reflects the one-quarter contribution of the Covidien transaction which closed on January 26, 2015. 2 Restated from 2014 Integrated Performance Report. 3 Excluding $218M of proceeds from Physio-Control used for repurchases. 4 The number of work-related injuries or illnesses serious enough to require treatment beyond first-aid, per 100 employees working a full year. 5 The number of work-related injuries or illnesses serious enough to cause an employee to miss one or more work days or to have one or more work days of restricted duty, per 100 employees working a full year. Injury and lost/restricted rates do not include portions of Asia, eastern Europe or Latin America sales teams. 6 Environmental data reflects ongoing updates by our contributing locations, which may cause minor discrepancies in numbers reported in past years.

Medtronic Global Workforce1 FY2011 FY2012 FY2013 FY2014 FY2015 Total 43,234 42,471 43,091 43,707 46,368 Female 21,211 20,824 21,148 21,468 22,657 Asia-Pacific 3,171 3,465 4,053 4,470 4,950 Female 1,380 1,549 1,754 1,959 2,169 Canada 750 734 749 738 792 Female 463 451 474 462 495 Europe/Central Asia/Middle East/Africa 9,007 9,229 9,126 9,270 9,754 Female 4,759 4,798 4,875 4,944 5,069 Latin America 2,713 2,972 3,064 3,302 3,786 Female 2,021 2,172 2,201 2,357 2,628 U.S. & Puerto Rico 27,593 26,071 26,099 25,927 27,086 Female 12,588 11,854 11,844 11,746 12,296 1 Note: Global Workforce does not include temporary or contingent workers.

Employment Type FY2011 FY2012 FY2013 FY2014 FY2015 Hourly 17,560 19,396 19,184 19,219 20,205 Salaried 20,886 18,322 18,9694 19,358 20,572 (nonmanagement)1 Management2 4,461 4,450 4,654 4,855 5,273 Executive3 327 303 284 275 318 1 Salary (nonmanagement) = employees at or above a specific pay band not in a management or executive role 2 Management = managers, senior managers, directors, and senior directors 3 Executive = all levels of vice presidents 4 Restated from 2014 Integrated Performance Report.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | FY2015 DAta Summary 71 Global Part-Time FY2011 FY2012 FY2013 FY2014 FY2015 Total 1,209 1,177 1,196 1,210 1,284 30 and under 113 94 73 71 66 31-50 892 897 924 937 985 51 and above 204 186 199 202 233 Female 1,096 1,057 1,082 1,097 1,127 Asia-Pacific 45 57 60 59 56 Canada 8 7 9 6 11 Europe/Central Asia/ 797 798 821 845 877 Middle East Latin America 0 0 0 0 0 U.S. & Puerto Rico 246 195 192 187 183

Global Full-Time FY2011 FY2012 FY2013 FY2014 FY2015 Total 42,025 41,293 41,895 42,497 45,084 30 and under 7,633 7,464 6,950 7,065 7,967 31-50 26,909 26,570 27,076 27,299 28,341 51 and above 7,483 7,259 7,869 8,133 8,776 Female 20,115 19,767 20,066 20,371 21,530 Asia-Pacific 1,335 1,492 1,694 1,900 2,113 Canada 455 444 465 456 484 Europe/Central Asia/ 3,962 4,000 4,054 4,099 4,192 Middle East Latin America 2,021 2,172 2,201 2,357 2,628 U.S. & Puerto Rico 12,342 11,659 11,652 11,559 12,113

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | FY2015 DAta Summary 72 Employee Turnover (Voluntary and Involuntary) FY2011 FY2012 FY2013 FY2014 FY2015 Total 4,100 7,062 4,630 4,502 4,453 30 and under 1,359 1,635 1,188 922 1,174 31-50 2,181 3,893 2,750 2,671 2,492 51 and above 560 1,534 692 909 787 Female 2,370 3,664 2,3721 2,226 2,236 Asia-Pacific 253 249 307 257 292 Canada 39 52 51 44 18 Europe/Central Asia/ 332 455 378 410 517 Middle East Latin America 743 750 440 266 383 U.S. & Puerto Rico 1,003 2,158 1,196 1,249 1,026 ¹ Restated from 2014 Integrated Performance Report.

New Employee Hires FY2011 FY2012 FY2013 FY2014 FY2015 Total 5,062 4,784 4,581 4,699 5,407 30 and under 2,116 2,001 1,736 1,959 2,384 31-50 2,629 2,501 2,521 2,450 2,702 51 and above 317 282 324 290 321 Female 2,779 2,462 2,255 2,302 2,574 Asia-Pacific 296 413 463 394 431 Canada 85 32 59 24 29 Europe/Central Asia/ 456 354 336 420 440 Middle East Latin America 705 509 295 360 255 U.S. & Puerto Rico 1,237 1,154 1,102 1,104 1,419

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | FY2015 DAta Summary 73 About This Report The Medtronic 2015 Integrated n Injury and Lost/Restricted Rates: do This is our second annual about This Performance Report includes financial not include portions of Asia, Eastern Integrated Report, which includes Report and nonfinancial information and was Europe, or Latin America sales both financial and sustainability prepared in accordance with the G4 teams information. Our last integrated Core guidelines of the Global Reporting n Supplier Spend, Supplier Diversity, report, which covered FY2014, Initiative (GRI), the world’s most and Wages Paid Data: does not was published in October 2014. recognized framework for sustainability include Advanced Uro-Solutions, reporting. The report also references Biostar, Cardiocom, Corventis, We believe that our integrated points of interest as determined Diabeter, Kanghui, NGC Medical, report provides a comprehensive by the Sustainability Accounting Osteotech, PEAK Surgical, Salient overview of Medtronic. It Board Standards (SASB) for Medical Surgical Technologies, Sapiens, reflects the way that we do Equipment and Supplies in addition Sophono, TYRX, or Visualese business, considering the social to the Dow Jones Sustainability Index and environmental factors and questionnaire, which we have reported All financial information is reported in impacts. By working responsibly, to since 2008. U.S. dollars. Environmental, health, and we believe that we increase our safety data is from our manufacturing ability to add positive value to Unless otherwise stated, all and research and development society. performance data in this report covers facilities. Medtronic’s fiscal year 2015 (FY2015) The integrated reporting index from April 25, 2014 through April 24, Any forward-looking statements are that follows highlights some of 2015. subject to risks and uncertainties such the most important ways that our as those described in Medtronic’s business success is tied to our This report includes data from periodic reports on file with the social, environmental, and ethical Medtronic, Inc. and all of its Securities and Exchange Commission. performance, and provides page consolidated subsidiaries. In January Actual results may differ materially references for more information. 2015, we completed our acquisition of from anticipated results. Covidien plc. Our financial reporting in this report and our FY2015 Form 10-K For additional business and includes Covidien’s fourth quarter sustainability information, please refer performance and results. Except where to our SEC filings, including Form 10-K, otherwise noted, Covidien’s non- Proxy filings,press releases, and our financial performance data has not CDP disclosure. been integrated in this year’s report. Other excluded entities, noted below, Medtronic has not sought independent are not believed to be significant verification of this report but has (<10 percent effect on overall data). practices in place to internally validate the data. n ehS Data: does not include Kanghui n global Workforce Data: does not We want to hear from all our include CardioInsight, Kanghui, stakeholders. To provide feedback or Libeier, or Sophono request additional information, please email integratedreport@medtronic. com.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | About This Report 75 Integrated Report Index ($ millions except percent and per share data) Section Integration feature Sustainability Risk and Opportunity Sustainability risk management practices Sustainability Risk and Opportunity Management of business continuity and crisis risks Sustainability Risk and Opportunity Cost savings from environmental improvement targets Sustainability Risk and Opportunity Meeting customer expectations with sustainability performance Sustainability Risk and Opportunity Responding to investor requirements Access Investing in R&D to spur innovation Access Solving market challenges Access Aligning value for better patient and cost outcomes Access Product pricing and payment Patient Safety Post-market surveillance practices that improve new product development Patient Safety Product-related regulatory actions Financial Strength Aligning our business with healthcare needs Financial Strength Revenue growth in emerging markets Financial Strength Supporting local economies through operating costs Community Investments Philanthropy as a percentage of profit Governance and Engagement Ethical conduct as a driver of our credibility and success Employees Measurable returns on investments in employee wellness Employees Employee compensation and incentives as a reflection of our commitment to quality and ethics Employees The importance of an inclusive workforce to business success Environment Environmental, Health, and Safety management system impacts business risk, operational efficiencies, and costs Environment Climate change as a potential threat to the business resilience of our future operations and supply chain Supply Chain Supply chain protocols avoid supplier error that can impact patient health and damage our reputation

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | About This Report 76 Global Reporting Initiative Index

GRI Disclosure of Management Approach GRI General Standard Disclosures GRI Specific Standard Disclosures Sustainability Accounting Standards Board Disclosures GRI Disclosure of Management Approach to Material Issues Supplement Access Definition The availability and affordability of our products and therapies once they have reached the market. This includes our efforts to ensure that devices are accessible to patients who can benefit from them, such as capacity building, training and education programs, investments and improvements in local infrastructure, efforts to improve affordability, and initiatives to address legal and regulatory restrictions. The Global Reporting Initiative (GRI) G4 Guidelines Disclosure on DMA-a Management Approach The accessibility of our therapies, services and solutions is imperative to achieving our Mission are an internationally and sustaining long-term business success. In FY2015, our revenue grew faster in emerging recognized standard for markets than in the developed world; making our therapies, services and solutions accessible to reporting on corporate more people is inherent in our growth strategy. social and environmental We also view access to healthcare as a human rights issue, and believe that all people deserve responsibility performance. the care they need. Our Mission implores us to contribute to human welfare, and our access strategy is a key element of this. Throughout this index, we include information and Through business and philanthropic activities, we assess local, unmet healthcare needs, and tailor new or existing products and therapies to overcome barriers to care. references to our FY2015 Integrated Performance DMA-b We are guided by our Mission – To contribute to human welfare by application of biomedical Report, financial reports, engineering in the research, design, manufacture, and sale of instruments or appliances that and corporate governance alleviate pain, restore health, and extend life. guidelines. We have reported Each business unit develops new products, therapies, and programs to reach more people with on GRI Aspects related to life-changing care. We also develop new programs, initiatives, and business activities designed our 12 material issues, as to increase access to healthcare, such as the Global Health Initiative, the Patient Access Acceleration Program and Medtronic Hospital Solutions. determined by a materiality assessment conducted in Medtronic Philanthropy also contributes to our access strategy. The Global Health Access Grants and Community Health Access Grant Programs support our efforts. Detailed FY2014. information about management of our grant programs is available at http://philanthropy. medtronic.com/grants-and-funding/health-access-grants/index.htm. We also include a DMA-c Sustainability Accounting Efforts to increase access to healthcare are embedded in the day-to-day operations of our Standards Board (SASB) index entire company. The Board of Directors and Executive Committee have primary responsibility for the Medical Equipment for ensuring that we are maximizing our ability to reach patients who can benefit from our and Supplies Industry. products and therapies. Each business unit and region reports to the board regularly. Medtronic Philanthropy is led by a board of directors that includes Medtronic senior leaders from across the business units and regions, as well as Omar Ishrak, Chairman and CEO, and Gary Ellis, Chief Financial Officer. Boundaries Access, and our related impacts, are relevant for all our customers and patients, as well as (G4-20, G4-21) individuals who are not yet customers or patients who could benefit from our products or therapies.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 78 Reference for more See Access, pages 11-19 of our Integrated Performance Report, and Financial Strength, pages information 25-33, for more information about how we provide access to healthcare to those who need it. Visit philanthropy.medtronic.com for more information on specific philanthropic efforts. Related GRI Aspects SO: Local Communities Product Quality Definition Product Quality reflects our commitment to ensuring quality and safety of our products in relation to all our stakeholders including patients, physicians, hospital administrators, and our employees. It covers design, reliability, manufacturability, supplier quality, global compliance, post-market surveillance, complaint handling, and corrective action planning. Disclosure on DMA-a Management Approach Our patient-centric approach requires us to put product quality and safety first. Product quality covers the full lifecycle of a product, from product design through manufacture, use, and disposal. Quality and reliability are important to ensure the safety of all the patients who depend on our products and therapies for their health and wellbeing. DMA-b At Medtronic, product quality is everyone’s responsibility and it is embedded into our culture. At the highest level, the Quality and Technology Committee of the Board of Directors is responsible for oversight of product quality. In our business, the Global Quality department leads our product quality efforts. Our Senior Vice President of Global Quality is a member of the Executive Committee. Specific processes and programs ensure quality oversight throughout our process: n Design, Reliability, and Manufacturability ensures quality in R&D n The Medtronic Operating System ensures quality in production n The World Quality Program embeds quality in our sales and distribution systems. We also adhere to regulatory requirements, such as those of the U.S Food and Drug Administration, and use the Medtronic Corporate-Wide Assessment for Regulatory Excellence to drive continual improvement in our regulatory compliance systems. Our goals are to maintain an average of 0.5 or fewer regulatory findings per inspection, and to receive no FDA Warning Letters related to our products or therapies. DMA-c The Quality and Technology Committee of the Board of Directors monitors and evaluates our quality systems and processes on an annual basis. Full details of committee responsibilities are available in the committee charters on our Corporate Governance website. We apply Lean Six Sigma principles and use the Medtronic Corporate-Wide Assessment for Regulatory Excellence to foster continual improvement in our quality systems. When we experience a quality problem with one of our products or therapies, we take all necessary actions to remedy the issue and identify opportunities for improvement to prevent future issues.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 79 Boundaries Product quality is relevant across the entire product lifecycle. Within Medtronic, we manage (G4-20, G4-21) product quality in R&D, manufacturing and production, sales and distribution. Product quality is relevant to external groups including customers – the medical professionals and patients who rely on our products and therapies. Reference for more See Patient Safety, pages 20-24 for more information about how we manage product quality information across our business. Related GRI Aspects PR: Compliance PR: Customer Health and Safety PR: Product Labeling Ethics in Sales and Marketing Definition Ethics in Sales and Marketing is our commitment to ensuring responsible business practices in relation to the marketing, communications, and promotion of all of our therapies and products. This includes the prevention and monitoring of all corruption and anti-competitive related practices, as well as compliance with global regulatory authorities. Disclosure on DMA-a Management Approach Forming and maintaining the trust of our patients, industry partners, healthcare providers, investors, regulators, governments, and employees is critical to our business success. Corrupt and anti-competitive practices undermine this trust, our Mission-led commitment to integrity, and subsequently, our business performance. Building trust requires that we are transparent about our products, services, and practices at all times. Our customers depend on our medical services and therapies, and we must ensure that these products are promoted in a way that supports their lawful and approved use. We also disclose certain payments we make to health care professionals and ensure we are in compliance with reporting requirements. DMA-b Medtronic follows several internal and external policies related to ensuring ethics in sales and marketing. These include: n Code of Conduct n Global Business Conduct Standards Policy, including our Anti-corruption Policy and Global Conflicts of Interest Policy n Code of Ethics for Senior Financial Officers n Code of Business Conduct and Ethics for Members of the Board of Directors n Medtronic Donations All employees and board members must read and certify their understanding of the Code of Conduct. Medtronic has the equivalent of approximately 223 full-time employees who spend time helping to ensure that our practices remain compliant globally. Relevant employees also complete mandatory biennial anti-corruption training. We also conduct due diligence on global distributors and dealers before entering into contracts with them.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 80 Disclosure on Each Medtronic business unit maintains internal review processes to ensure appropriate Management Approach product promotion. Medtronic also follows internal policies that prohibit the unlawful (continued) promotion of products for off-label uses. DMA-c The Medtronic Office of Ethics and Compliance (OEC), and chief ethics and compliance officer, oversees and implements all ethics policies and programs. The chief ethics and compliance officer reports results periodically to the CEO, the Audit Committee, and at least annually to the board. Medtronic employees are assessed on their ethical behavior and completion of ethics- related training, which are linked to discretionary pay and incentives. We also ask ethics and compliance-related questions during our annual employee engagement survey. We report the results of our efforts annually in our Integrated Performance Report. Boundaries Ethics in sales and marketing, and its related impacts, is relevant to all Medtronic employees (G4-20, G4-21) Ethics in sales and marketing, and related impacts, is relevant to our patients, our industry partners, our distributers, healthcare providers, investors, regulators, and governments. Reference for more See Governance and Engagement, pages 41-48, for more information on our approach to information ethical sales and marketing. Related GRI Aspects SO: Anti-Competitive Behavior SO: Anti-Corruption PR: Marketing Communications Responsible Sourcing Definition Responsible sourcing is our practice of collaborating with our supply chain to develop long-term relationships that enhance product quality, worker rights, impact on local communities, and environmental protection. Disclosure on DMA-a Management Approach A robust and reliable supply chain is critical to our business. It allows us to produce and deliver the medical devices and therapies on which our customers and millions of patients depend. Maintaining a responsible supply chain is essential to delivering the quality products that drive Medtronic’s success and supports our social license to operate. DMA-b To drive responsible practices across our global supply chain, we expect all vendor companies to operate ethically. This means following all applicable laws related to governance, environmental responsibility, workplace health and safety, and human rights. More details are outlined in our Responsible Supply Chain policies. Responsible sourcing is managed by our Sourcing Leadership Team on the Operations Council and the Conflict Minerals Management Team. Our supplier quality program is built on: n Our Supplier Controls Policy, which addresses risk management, evaluation and selection, performance, monitoring, and certification in our supplier base.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 81 Disclosure on n Our Supplier Quality and Excellence Manual, which all suppliers must follow. Management Approach n Training provided to suppliers through our supplier development program. (continued) n Supplier participation in our Design, Reliability, Manufacturability (DRM) process, which assures standard product performance. Our Supplier Diversity Team, Supplier Diversity Steering Committee, and executive management lead our Supplier Diversity Program. Our approach includes: identifying suitable new diverse suppliers, raising internal awareness about supplier diversity, and joining initiatives that support supplier diversity beyond our business. DMA-c We provide suppliers with protocols, training, and support to ensure that regulatory and self- imposed quality standards are consistently met. As we integrate with Covidien, we are assessing the practices of both companies to develop a consolidated and comprehensive approach to responsible sourcing. Moving forward we expect to leverage leading practices from both companies to maintain and enhance our sustainability standards for suppliers and supplier risk-assessment process. Boundaries Responsible sourcing is relevant to our suppliers, our patients, our customers, and our local (G4-20, G4-21) communities. Reference for more See Supply Chain, pages 65-67 for more information about how we ensure responsible sourcing information for our products. Related GRI Aspects LA: Supplier Assessment for Labor Practices HR: Supplier Human Rights Assessment EN: Supplier Environmental Assessment EC: Procurement Practices EC: Indirect Economic Impacts HR: Human Rights Grievance Mechanisms HR: Non-Discrimination HR: Freedom of Association Product Stewardship Definition Minimizing the lifecycle footprint of our products and packaging through design innovation. Disclosure on DMA-a Management Approach Driven by our Mission, we proactively manage environmental, health, and safety issues across our value chain to minimize our environmental impact. DMA-b We have identified product stewardship as an area of importance to our environmental impact. During FY2015, we completed research on establishing a product stewardship program at the company, which included the development of criteria for determining product sustainability, a potential product scorecard, and the framework for a pilot program that we hope to launch in FY2016 with three products.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 82 Disclosure on DMA-c Management Approach The Medtronic EHS team and the Business EHS Council oversee our EHS Policy and conduct (continued) audits to ensure compliance with EHS regulations. In addition, these groups provide input and approval for EHS strategies, performance metrics, risk identification and management, and sustainability opportunities. A Regional EHS Council manages global EHS risks in the distribution centers and sales organization. Boundaries Product stewardship is relevant to our operations, our supply chain, and our customers. (G4-20, G4-21) Reference for more See Environment, pages 59-64 for more information about how we manage our product information stewardship. Related GRI Aspects EN: Materials EN: Products and Services Trial Data Definition Ethical and responsible conduct related to clinical trials, including transparency of data, ethics in research and development, and clinical data sharing. Disclosure on DMA-a Management Approach The way that we collect and evaluate data is a critical component of our commitment to product quality and safety. Reliable and transparent information ensures that our clinical trials are conducted ethically and in alignment with the highest standards for data integrity and analysis. This, in turn, ensures that our products and therapies are safe and effective for the patients who depend on them. DMA-b We follow rigorous guidelines laid out in our Code of Conduct, Global Business Conduct Standards Policy, and Clinical Trials Principles. Our Clinical Trials Registry details information about the purpose, eligibility requirements, locations, and status of each trial that we sponsor. Oversight for clinical trials also falls to the Chief Scientific, Clinical, and Regulatory Officer who serves on the Executive Committee. In 2013, we were the first company in the medical industry to make all clinical trial data for a product publicly available, through a partnership with the Yale Open Data Project. DMA-c The Quality and Technology Committee of the Board of Directors monitors and evaluates our approach to research and development and human and animal studies on an annual basis. Full details of committee responsibilities are available in the committee charters on our Corporate Governance website. We also work with external organizations and peers to improve and scale the way that we collect data and evaluate products and therapies through clinical trials.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 83 Boundaries Ethics, transparency, and reliability of trial data is relevant in our R&D operations, and the (G4-20, G4-21) Regulatory and Clinical Affairs department. Ethics, transparency, and reliability of trial data is relevant to external groups including customers, particularly the medical professionals and patients who participate in our clinical trials and that use our products once they reach market. Reference for more See Patient Safety, pages 20-24 for more information about how we manage ethics, information transparency, and reliability of trial data. Related GRI Aspects PR: Customer Health and Safety Stakeholder Engagement Definition Engaging our stakeholders throughout the healthcare system, including patients, physicians, hospital administrators, advocacy groups, governments, nonprofits and nongovernmental organizations, employees, suppliers, investors, shareholders, regulators, and the communities where we operate. Disclosure on N/A Management Approach Boundaries N/A (G4-20, G4-21) Reference for more See Governance and Engagement, pages 41-48, and Sustainability Risk and Opportunity, pages information 7-9, for more information about how we engage with stakeholders. Related GRI Aspects General Standard Disclosures Device Security Definition Device security is the ability to keep our products and therapies, such as implantable devices, safe from cyber-related threats and vulnerabilities, including hacking, that might compromise the products’ intended use or personal data related to the patient. Disclosure on DMA-a Management Approach Device security, as well as any potential threat to patient safety, is taken very seriously at Medtronic, and is critical our Mission and essential to our business success. Medtronic works to make all products as safe and secure while still easy to use for the patients and physicians who depend on them. Malicious threats to implantable devices remain low, but device security is an area that is consistently addressed in the design process. DMA-b In FY2015, Medtronic formally approved a company-wide Global Product Security Policy. This policy provides guidance on integrating security into product development. This policy is combined with a strong product security program. Medtronic also engages with external stakeholders, including experts and regulators, to ensure device security and maintain best practice.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 84 Disclosure on DMA-c Management Approach Medtronic’s Global Privacy and Security Office and Security Steering Committee oversees (continued) initiatives, policies, and programs related to device security. The Quality and Technology Committee of the Board of Directors monitors and evaluates our quality systems and processes on an annual basis. Full details of committee responsibilities are available in the committee charters on our Corporate Governance website. Boundaries Device security is relevant across the entire product lifecycle. Within Medtronic, we manage (G4-20, G4-21) product quality in R&D, manufacturing and production, sales and distribution. Device security is relevant to external groups including customers - the medical professionals and patients who rely on our products and therapies. Reference for more See Governance and Engagement, pages 41-48, and the Medtronic Statement on Medical information Device Security for more information on device security. Related GRI Aspects PR: Customer Health and Safety PR: Customer Privacy Philanthropy Definition Charitable contributions through Medtronic Philanthropy, foundation giving, corporate cash contributions, and product donations. Disclosure on DMA-a Management Approach We believe that it is important to give back to the communities where we operate and our people live and work, as well as the communities all over the world where our patients, and potential patients, live. Through philanthropic activities, we contribute to our Mission of alleviating pain, restoring health, and extending lives. DMA-b Our charitable giving activities are managed by our business units and by Medtronic Philanthropy, which oversees the Medtronic Foundation and corporate giving activities. Our efforts support the World Health Organization’s goal to reduce death from noncommunicable diseases by 25 percent by 2025. Our yearly goal is to donate 1.5 percent of our global pre-tax profits to charitable causes. Two of our primary Medtronic Foundation programs are the Community Health Access and Global Health Access Grant programs, but we also make contributions related to disaster relief and patient recognition, and support employee giving through matching gifts and paid volunteer hours. We disclose all donations made to U.S. customers, or organizations affiliated with them, on our Charitable Donations Registry. Our corporate guidelines for charitable giving are outlined in our Charitable Donations Guidelines. They adhere both to our Global Business Conduct Policy and the medical technology industry’s AdvaMed Code of Ethics.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 85 Disclosure on DMA-c Management Approach Medtronic Philanthropy continually evaluates the impact of our philanthropic activities and (continued) emerging global healthcare needs across the continuum of care. More information on the continuum of care is available in Community Investments, page 35. We also use periodic grant reports from grant recipients to evaluate the Medtronic Foundation’s strategy and impact. Medtronic Philanthropy is led by a board of directors that includes Medtronic senior leaders from across the business units and regions, as well as Omar Ishrak, Chairman and CEO, and Gary Ellis, Chief Financial Officer. Boundaries Within Medtronic, our philanthropic activities apply primarily to our employees, who (G4-20, G4-21) are encouraged to give back to their communities through charitable contributions and volunteerism. Philanthropy is relevant outside of Medtronic to all the communities, or potential communities, that receive funds and/or product donations from Medtronic. We focus our Community Health Access programs on the 36 communities where we have the largest employee base, but give broadly all over the world. Reference for more See Community Investments, pages 34-39, for more information about our approach to information Philanthropy. Related GRI Aspects SO: Local Communities EC: Indirect Economic Impact Post-Market Surveillance Definition Ethical and responsible conduct related to post-market surveillance, including transparency of data, data collection, and clinical data sharing. Disclosure on DMA-a Management Approach The way that we collect and evaluate data once a product or therapy has reached the market is a critical component of our commitment to product quality and safety. Through a network of partner hospitals, health systems, physicians, clinics, governments, and third-party databases, we capture critical data on key products, which allows us to conduct measurable, cost-effective analysis of our product performance and informs product development. Post-market surveillance also helps us understand product performance in a real-world setting, measure performance against known complications, and identify potential problems early. This helps us to ensure that our products and therapies are safe and effective for the patients who depend on them. DMA-b Our post-market surveillance is overseen by our Chief Scientific, Clinical, and Regulatory Officer who serves on the Executive Committee.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 86 Disclosure on DMA-c Management Approach The Quality and Technology Committee of the Board of Directors monitors and evaluates our (continued) approach to product quality and human and animal studies on an annual basis. Full details of committee responsibilities are available in the committee charters on our Corporate Governance website. We also work with external organizations and peers to improve and scale the way that we collect data and evaluate products and therapies once they reach the market. Boundaries Ethics, transparency, and reliability of clinical data is relevant in the post-market surveillance (G4-20, G4-21) of our products and therapies in the Regulatory and Clinical Affairs department and in all our quality, scientific, clinical, and regulatory departments, as well as to the business units that develop our products. Ethics, transparency, and reliability of post-market surveillance activities is relevant to external groups including customers – the medical professionals, patients, health systems, and insurers who participate in our surveillance activities and that use our products. Reference for more See Patient Safety, pages 20-24, for more information about how we manage ethics, information transparency, and reliability of clinical data in our post-market surveillance. Related GRI Aspects PR: Customer Health and Safety Corporate Governance Definition The policies, procedures, and practices that govern our company, including board structure and independence, executive compensation, and accountability. Disclosure on N/A Management Approach Boundaries N/A (G4-20, G4-21) Reference for more See Governance and Engagement, pages 41-48, for more information about our corporate information governance structure. Related GRI Aspects General Standard Disclosures Talent Definition Talent relates to the recruitment, retention, and development of all employees. This includes employee training, career management and promotion, and leadership development of all employees, in addition to compensation and benefits practices. Disclosure on DMA-a Management Approach Our business is knowledge-based, and our collective success is dependent on attracting, developing, and retaining top diverse and collaboratively-minded talent. Driven by our Mission, we bring this commitment to life through global career development and training programs, career management opportunities, and competitive benefits and compensation practices. Diversity, inclusion, and gender balance in the workforce are also considered priority areas for Medtronic.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 87 Disclosure on DMA-b Management Approach Our Mission inspires us to recognize the personal worth of our employees by providing an (continued) employment framework that allows personal satisfaction in work accomplished, security, advancement opportunity, and means to share in the company’s success. Led by our Human Resources department, Medtronic has established programs and policies to attract, develop, and retain a diverse set of talented employees. Internal and external-facing policies and programs include: n Code of Conduct n EEO statement n Voice Your Concern Policy n Medtronic Employee Assistance Program n Medtronic Benefits, Policies, and Services DMA-c Medtronic’s Chief Human Resource Officer serves on the Executive Committee and has primary responsibility for talent related initiatives. The Medtronic Compensation Committee assists the Board of Directors in overseeing and evaluating employee benefit plans and stock programs. Medtronic’s Voice Your Concern Line is a website and toll-free hotline operated by a third party provider providing employees, as well as anyone operating on behalf of Medtronic, a place to report and voice concerns. The Office of Ethics and Compliance evaluates all reported concerns and escalates as necessary. Medtronic monitors the effectiveness of talent programs through internal feedback mechanisms including the Employee Engagement Survey, Pulse Surveys, and Performance Evaluations. Boundaries Within Medtronic, our approach to talent is relevant to all current employees. (G4-20, G4-21) Outside Medtronic, our approach to talent is relevant to all prospective employees and former employees. Reference for more See Employees, pages 49-58, Governance and Engagement, pages 41-48, and our information Compensation Committee Charter websites for more information about our approach to talent management. Related GRI Aspects LA: Employment LA: Training and Education LA: Equal Remuneration for Women and Men LA: Labor Practices Grievance Mechanisms

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 88 Financial Strength Definition Sustainable revenue generation and business growth through disciplined management of financial capital and resources. Disclosure on DMA-a Management Approach Sound financial stewardship is at the core of everything we do. If we do not use and generate financial resources responsibly, we cannot exist as a sustainable business. The financial strength of our business enables us to improve clinical outcomes, expand access to healthcare, and optimize healthcare cost and efficiency. DMA-b We apply rigorous financial discipline as we pursue three growth strategies: 1. Therapy Innovation 2. Economic Value 3. Globalization These growth strategies are supported by financial goals that reinforce our commitment to shareholders: 1. Deliver consistent mid-single digit revenue growth. 2. Grow earnings per share 200 to 400 basis points faster than revenue. 3. Return 50 percent of free cash flow to shareholders. DMA-c Our financial performance is overseen by the Audit and Finance Committees of the Board of Directors. The Audit Committee is responsible for the integrity of our financial reporting, auditing, and compliance. The Finance Committee has oversight of our financial policies, strategies, and capital structure. Full details of committee responsibilities are available in the committee charters on our Corporate Governance website. Our shareholders, as owners of our company, have ultimate say in our financial management. Our Investor Relations team has ongoing contact with our shareholders, and we formally communicate with them and invite feedback through quarterly earnings calls and annual meetings. Boundaries Financial strength is relevant across all of our operations in the way that we generate and use (G4-20, G4-21) financial resources. Financial strength is relevant outside our business in the way that we generate revenue from our customers, purchase goods and services from our suppliers, and support local communities through taxes and other local investment. Reference for more See Financial Strength, pages 25-33, our 2015 Form 10-K, and our Corporate Governance and information Investor Relations websites for more information about our approach to financial management. Related GRI Aspects EC: Economic Performance EC: Indirect Economic Impacts

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 89 GRI General Standard Disclosures Indicator Response Strategy and Analysis G4-1: Statement from most senior decision maker. CEO Letter G4-2: Key impacts, risks and opportunities. CEO Letter Sustainability Risk and Opportunity 2015 Form 10-K Organizational Profile G4-3: Name of the organization. Medtronic, Inc. G4-4: Primary brands, products and services. Company Overview 2015 Form 10-K G4-5: Location of the organization’s headquarters. 20 Lower Hatch Street, Dublin 2, Ireland G4-6: Number of countries where the organization operates, Company Overview and names of countries where either the organization has 2015 Form 10-K, pg. 9-10, 113 significant operations or that are specifically relevant to the Supply Chain – Our Approach sustainability topics covered in the report. G4-7: Nature of ownership and legal form. Medtronic, plc is a publicly traded company on the New York Stock Exchange, Inc. under the ticker symbol MDT. G4-8: Markets served (including geographic breakdown, sectors Company Overview served, and types of customers and beneficiaries). Financial Strength 2015 Form 10-K, pg. 6, 8-9 G4-9: Scale of organization. Company Overview Financial Strength 2015 Form 10-K G4-10: Total workforce by employment contract and gender. Company Overview Employees – Data Summary G4-11: Percentage of total employees covered by collective Employees – Our Global Workforce bargaining agreements. G4-12: Describe the organization’s supply chain. Supply Chain G4-13: Significant changes during the reporting period regarding Company Overview the organization’s size, structure, ownership, or its supply chain. Supply Chain 2015 Form 10-K

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 90 Indicator Response G4-14: Whether and how the precautionary approach or Patient Safety principle is addressed by the organization. Environment – Managing our Environmental, Health, and Safety Performance Environment – Minimizing our Operational Footprint G4-15: Externally developed economic, environmental and Sustainability Risk and Opportunity – Creating social charters, principles, or other initiatives to which the Opportunities organization subscribes or which it endorses. Access – Breakthrough Solutions For Access To Care Access – Aligning Value for Better Patient and Cost Outcomes Patient Safety – Conducting Responsible Research and Clinical Trials Community Investments – Disaster Relief Governance and Engagement – Engaging Stakeholders Environment – Managing Our Environmental, Health, and Safety Performance Supply Chain – Sourcing Responsibly G4-16: Memberships in associations (such as industry Access – Breakthrough Solutions For Access To Care associations) and/or national/international advocacy Patient Safety – Conducting Responsible Research and organizations in which the organization: Clinical Trials n Has positions in governance bodies; Governance and Engagement – Lobbying and Political n Participates in projects or committees; Contributions Disclosure n Provides substantive funding beyond routine membership Governance and Engagement – Engaging Stakeholders dues; or Supply Chain – Building Strength Through Diversity n Views membership as strategic. Identified Material Aspects and Boundaries G4-17: All entities included in the organization’s consolidated Company Overview financial statements or equivalent documents and whether any About this Report of these entities is not covered by the report. 2015 Form 10-K G4-18: Explain the process for defining the report content Sustainability Risk and Opportunity and the Aspect Boundaries and how the organization has About this Report implemented the Reporting Principles for Defining Report Content. G4-19: All the material Aspects identified in the process for Sustainability Risk and Opportunity defining report content. G4-20: The Aspect Boundary within the organization for each Disclosures on Management Approach material Aspect.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 91 Indicator Response G4-21: The Aspect Boundary outside the organization for each Disclosures on Management Approach material Aspect. G4-22: The effect of any restatements of information provided Any restatements of information and data provided in in previous reports, and the reasons for such restatements. previous reports are noted throughout this report. G4-23: Significant changes from previous reporting periods in About this Report the Scope and Aspect Boundaries. Stakeholder engagement G4-24: A list of stakeholder groups engaged by the organization. Sustainability Risk and Opportunity – Understanding our Risks and Opportunities Governance and Engagement – Engaging Stakeholders G4-25: The basis for identification and selection of stakeholders Sustainability Risk and Opportunity – Understanding our with whom to engage. Risks and Opportunities Governance and Engagement – Engaging Stakeholders G4-26: The organization’s approach to stakeholder Sustainability Risk and Opportunity – Understanding our engagement, including frequency of engagement by type and Risks and Opportunities by stakeholder group, and an indication of whether any of the Governance and Engagement – Engaging Stakeholders engagement was undertaken specifically as part of the report preparation process. G4-27: Key topics and concerns that have been raised through Sustainability Risk and Opportunity – Understanding our stakeholder engagement, and how the organization has Risks and Opportunities responded to those key topics and concerns, including through Governance and Engagement – Engaging Stakeholders its reporting. The stakeholder groups that raised each of the key Throughout the report topics and concerns. Report Profile G4-28: Reporting period for information provided. About this Report G4-29: Date of most recent previous report. About this Report G4-30: Reporting cycle. Annual G4-31: The contact point for questions regarding the report or About this Report its contents. G4-32: Report the ‘in accordance’ option the organization has About this Report chosen; the GRI Content Index for the chosen option and the reference to the External Assurance Report, if the report has been externally assured. G4-33: The organization’s policy and current practice with At this time, we do not pursue external assurance for our regard to seeking external assurance for the report. report our any specific GRI Indicators.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 92 Indicator Response Governance G4-34: The governance structure of the organization, including Governance and Engagement – How We Govern Our committees of the highest governance body. Identify any Company committees responsible for decision-making on economic, Corporate Governance website environmental and social impacts. Ethics and Integrity G4-56: The organization’s values, principles, standards and Governance and Engagement – Committed To An Ethical norms of behavior such as codes of conduct and codes of ethics. Workplace Governance and Engagement – An Ethical Approach To Sales and Marketing Code of Conduct Global Business Conduct Standards Policy Medtronic Mission

GRI Specific Standard Disclosures Indicator Response Identified Omissions Explanation for Omissions Category: Economic Economic Performance Disclosure on DMA: Financial Strength Management Approach G4-EC1: Direct economic Financial Strength value generated and Community Investments distributed. 2015 Form 10-K G4-EC2: Financial Sustainability Risk and implications and other Opportunity risks and opportunities for the organization’s activities due to climate change. Indirect Economic Impacts Disclosure on DMAs: Responsible Management Approach Sourcing, Philanthropy, Financial Strength

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 93 Indicator Response Identified Omissions Explanation for Omissions G4-EC7: Development and Access - Breakthrough Percentage of recycled The information is currently impact of infrastructure Solutions for Access to Care input materials used unavailable. and services supported. to manufacture the Financial Strength We do not collect enterprise-wide organization's primary Community Investments – data on our recycled materials. We products and services. Bringing Healthcare to More plan to track this through a data People collection system in future years. Community Investments – Disaster Relief Procurement Practices Disclosure on DMA: Responsible Sourcing Management Approach G4-EC9: Proportion of Supply Chain Percentage of the The information is currently spending on local suppliers procurement budget unavailable. at significant locations of used for significant At this time we do not collect data operation. locations of operation on the locations of operation spent spent on suppliers local on suppliers local to that operation. to that operation. This metric is not relevant to our business. Category: Environmental Materials Disclosure on DMA: Product Stewardship Management Approach G4-EN2: The percentage Environment Percentage of recycled The information is currently of recycled input materials input materials used unavailable. used to manufacture the to manufacture the We do not collect enterprise-wide organization’s primary organization's primary data on our recycled materials. We products and services. products and services. plan to track this through a data collection system in future years. Products and Services Disclosure on DMA: Product Stewardship Management Approach G4-EN27: Extent of Environment impact mitigation of Environment – Minimizing environmental impacts of Our Operational Footprint products and services. Supplier Environmental Assessment Disclosure on DMA: Responsible Sourcing Management Approach

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 94 Indicator Response Identified Omissions Explanation for Omissions G4-EN32: Percentage Supply Chain – Sourcing Percentage of new The information is currently of new suppliers that Responsibly suppliers that were unavailable. were screened using screened using At this time, our supplier risk environmental criteria. environmental criteria. assessment does not include environmental criteria. As we integrate with Covidien, we are assessing the practices of both companies to develop a consolidated approach to responsible sourcing. Category: Social Labor Practices and Decent Work Employment Disclosure on DMA: Talent Management Approach G4-LA1: Total number and Employees rates of new employee Data Summary hires and employee turnover by age group, gender, and region. Training and Education Disclosure on DMA: Talent Management Approach G4-LA9: Average hours Employees – Developing Training by employee The information is currently of training per year per Employee Potential category. unavailable. employee by gender, and At this time we do not track by employee category. the average number of training hours that Medtronic employees have undertaken. All Medtronic employees have access to skills based training. We currently track annual average amount spent on training and development activities per employee. Equal Remuneration for Women and Men Disclosure on DMA: Talent Management Approach

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 95 Indicator Response Identified Omissions Explanation for Omissions G4-LA13: Ratio of basic Employees – Developing Ratio of basic salary and The information is subject to salary and remuneration Employee Potential remuneration of women confidentiality constraints. of women to men by to men by employee Although Medtronic tracks the employee category, by category, by significant ratio of base salary and total significant locations of locations of operation. remuneration of women to men by operation. job code for significant locations of operation after normalizing for differences in full-time versus part-time status, job tenure, and job performance, this information is confidential. Supplier Assessment for Labor Practices Disclosure on DMA: Responsible Sourcing Management Approach G4-LA14: Percentage of Supply Chain – Sourcing Percentage of new The information is currently new suppliers that were Responsibly suppliers that were unavailable. screened using labor screened using labor At this time, our supplier risk practices criteria. practices criteria. assessment does not include labor practices criteria. As we integrate with Covidien, we are assessing the practices of both companies to develop a consolidated approach to responsible sourcing. Labor Practices Grievance Mechanisms Disclosure on DMA: Talent Management Approach G4-LA16: Number Governance and Number of grievances The information is currently of grievances about Engagement – Committed about labor practices unavailable. labor practices filed, to Ethical Workplace filed, addressed, and At this time we do not quantify addressed, and resolved resolved through formal number of grievances filed through formal grievance grievance mechanisms. specifically about labor practices. mechanisms. Medtronic tracks the total number of concerns we receive, but do not separate by issue (since many are cross-cutting). Human Rights Non-Discrimination Disclosure on DMA: Responsible Sourcing Management Approach

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 96 Indicator Response Identified Omissions Explanation for Omissions G4-HR3: Total number of Supply Chain – Sourcing Total number of incidents The information is currently incidents of discrimination Responsibly of discrimination and unavailable. and corrective actions corrective actions taken. At this time, we do not track taken. discrimination incidents for our suppliers. We do not plan to collect this specific information, but expect our suppliers to follow local laws and regulations as well as guidelines we’ve articulated in our Responsible Supply Chain policies. Freedom of Association and Collective Bargaining Disclosure on DMA: Responsible Sourcing Management Approach G4-HR4: Operations and Supply Chain – Sourcing Operations and suppliers The information is currently suppliers identified in Responsibly identified in which the unavailable. which the right to exercise right to exercise freedom At this time, we do not track freedom of association and of association and freedom of association and collective bargaining may collective bargaining collective bargaining activities for be violated or at significant may be violated or at our suppliers. We do not plan to risk and measures taken to significant risk, and collect this specific information, support these rights. measures taken to but expect our suppliers to follow support these rights. local laws and regulations as well as guidelines we’ve articulated in our Responsible Supply Chain policies. Supplier Human Rights Assessment Disclosure on DMA: Responsible Sourcing Management Approach G4-HR10: Percentage of Supply Chain – Sourcing Percentage of new The information is currently new suppliers that were Responsibly suppliers that were unavailable. screened using human screened using human At this time, our supplier risk rights criteria. rights criteria. assessment does not include human rights criteria. As we integrate with Covidien, we are assessing the practices of both companies to develop a consolidated approach to responsible sourcing.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 97 Indicator Response Identified Omissions Explanation for Omissions Human Rights Grievance Mechanisms Disclosure on DMA: Responsible Sourcing Management Approach G4-HR12: Number of Supply Chain – Sourcing Number of grievances The information is currently grievances about human Responsibly about human rights unavailable. rights impacts filed, impacts filed, addressed, At this time, we do not track addressed, and resolved and resolved through human rights grievances for through formal grievance formal grievance our suppliers. We do not plan to mechanisms. mechanisms. collect this specific information, but expect our suppliers to follow local laws and regulations as well as guidelines we’ve articulated in our Responsible Supply Chain policies. Society Local Communities Disclosure on DMAs: Access, Philanthropy Management Approach G4-SO1: Percentage Access – Breakthrough Percentage of operations The information is currently of operations with Solutions for Access to Care with implemented local unavailable. implemented local Community Investments – community engagement, At this time, we do not quantify community engagement, Bringing Healthcare to More impact assessments, and local community engagement impact assessments, and People development programs. activities as a percentage of development programs. operations and do not have plans to do so. Our products and therapies are available to patients all over the world. Our efforts to increase access through business and philanthropy are global. In addition, our philanthropic activities focus on the 36 communities where we have the largest employee presence, as well as medically underserved communities where we believe we can reduce barriers to care. We collaborate with local governments, health systems, companies, and nonprofit organizations to assess local needs and develop locally appropriate healthcare solutions.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 98 Indicator Response Identified Omissions Explanation for Omissions Anti-Corruption Disclosure on DMA: Ethics in Sales and Management Approach Marketing G4-SO5: Confirmed Governance and Confirmed incidents of The information is currently incidents of corruption and Engagement – Committed corruption and actions unavailable. actions taken. to an Ethical Workplace taken. Medtronic tracks the total number Governance and of employees terminated for ethics Engagement – In and compliance related lapses. Conversation with Tom This information is not broken out Schumacher, Chief Ethics by corruption-related activities. Officer, Medtronic Anti-Competitive Behavior Disclosure on DMA: Ethics in Sales and Management Approach Marketing G4-SO7: Total number Legal actions for material of legal actions for anti- issues can be found in our competitive behavior, 2015 Form 10-K anti-trust, and monopoly practices and their outcomes. Product Responsibility Customer Health and Safety Disclosure on DMAs: Product Quality, Trial Management Approach Data, Device Security, Post- market Surveillance G4-PR1: Percentage of Patient Safety significant products and service categories for which health and safety impacts are assessed for improvement. G4-PR2: Total number Patient Safety of incidents of non- compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 99 Indicator Response Identified Omissions Explanation for Omissions Product and Service Labeling Disclosure on DMA: Product Quality Management Approach G4-PR4: Total number In FY2015, we had five field of incidents of non- actions related to product compliance with labeling. In the event of a regulations and voluntary field action or recall, we codes concerning product take all necessary actions and service information to correct or remedy the and labeling, by type of root cause a problem with outcomes. our products or packaging, and have systems in place to prevent future field actions. Marketing Communications Disclosure on DMA: Ethics in Sales and Management Approach Marketing G4-PR7: Total Governance and number of incidents Engagement: Our Approach of non-compliance to Critical Ethical Issues with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. Customer Privacy Disclosure on DMA: Device Security Management Approach G4-PR8: Total number of Medtronic did not receive substantiated complaints any substantiated regarding breaches of complaints from outside customer privacy and parties or regulatory bodies losses of customer data. concerning breaches of customer privacy during FY2015. MDT responds to all data privacy and security incidents according to applicable local laws and MDT policy.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 100 Indicator Response Identified Omissions Explanation for Omissions Compliance Disclosure on DMA: Product Quality Management Approach G4-PR9: Monetary value 2015 Form 10-K of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

Sustainability Accounting Standards Board Disclosures Metric Response Medical Equipment and Supplies Industry Product Safety HC0201-01: List of products recalled. Reported in Patient Safety > Monitoring Product Use and Performance > Product Related Regulatory Actions HC0201-02: List of products listed in the FDA’s MedWatch None reported in the FDA’s MedWatch Safety Alerts for Safety Alerts for Human Medical Products (Medical Devices) Human Medical Products database database. Ethical marketing HC0201-04: Description of legal and regulatory fines and Partially reported in Governance and Engagement > An settlements associated with false marketing claims, including Ethical Approach to Sales and Marketing Federal Food, Drug, and Cosmetic Act violations for off-label marketing prosecuted under the False Claims Act. Dollar amount of fines and settlements and a description of corrective actions implemented in response to events. HC0201-05: Description of code of ethics governing promotion Reported in Governance and Engagement > Committed of off-label use of products, including mechanisms to ensure to an Ethical Workplace compliance. Governance and Engagement > An Ethical Approach to Sales and Marketing > Marketing Responsibly to Patients Affordability and Fair Pricing HC0201-06: Ratio of weighted average rate of net price Not Reported increases (for all products) to the annual increase in the U.S. Consumer Price Index. HC0201-07: Description of how price information (such as Partially reported in Access > Aligning Value for Better average and median) for each product is disclosed to customers Patient and Cost Outcomes > Price Information or their agents (e.g., group purchasing organizations or Disclosure consultants).

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 101 Metric Response Energy, Water and Waste Efficiency HC0201-08: Total annual energy consumed (gigajoules) and Reported in Environment > Minimizing our Operational percentage renewable (e.g., wind, biomass, solar). Footprint > Reducing Energy Use and Greenhouse Gas Emissions HC0201-09: Total water withdrawals and percentage from Partially reported in Environment > Minimizing our water-stressed regions – High or Extremely High Baseline Water Operational Footprint > Conserving Water Stress as defined by the WRI Water Risk Atlas; percentage of process water recycled. HC0201-10: Amount of waste (metric tons); percentage that is Partially reported in Environment > Minimizing our recycled, incinerated, and landfilled. Operational Footprint > Managing Waste Product Design and Lifecycle Management HC0201-11: Description of environmental and human health Partially Reported in Environment > [infographic] considerations made at product lifecycle stages such as design, Mitigating our impact across the Value Chain procurement, manufacturing, distribution, use, and end-of-life and the type and percentage of products to which efforts apply. HC0201-12: Description of Extended Producer Responsibility Partially reported in Environment > [infographic] (EPR) initiatives to promote manufacturer take-back, reuse, Mitigating our impact across the Value Chain or proper safe disposal at the end of the lifecycle. Amount (by weight) of products accepted for take-back and reused, recycled, or donated, broken down by: (1) devices and equipment and (2) supplies. Corruption and Bribery HC0201-13: Description of legal and regulatory fines and Reported in Governance and Engagement > Committed settlements associated with bribery, corruption, or unethical to an Ethical Workplace > Combating Corruption business practices, including violations of the Foreign Corrupt Practices Act and those associated with providing kickbacks to physicians. Dollar amount of fines and settlements and a description of corrective actions implemented in response to events. HC0201-14: Description of code of ethics governing interactions Reported in Governance and Engagement > Committed with health care professionals including mechanisms to ensure to an Ethical Workplace employee compliance. Governance and Engagement > An Ethical Approach to Sales and Marketing

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 102 Metric Response Manufacturing and Supply Chain Quality Management HC0201-15: Number and type of FDA enforcement actions Patient Safety > Monitoring Product Use and taken in response to violations of current good manufacturing Performance > Product Related Regulatory Actions practices (cGMP) including: product deemed adulterated, form 483s, suggested recall (Class I, II, III), Warning Letters, Border Alerts, license suspension or revocation, product seizure, Consent Decrees, criminal prosecution. HC0201-16: Percentage of facilities and Tier I suppliers Partially Reported in Environment > Managing our participating in third-party audit programs for integrity of supply Environmental, Health, and Safety Performance chain and products (e.g., materials, devices, packaging, etc.). Supply Chain > Sourcing Responsibly HC0201-17: Description of efforts to maintain traceability within Partially Reported in Supply Chain > Ensuring Product the distribution chain, particularly with respect to wholesalers, Quality re-packagers, and/or contract distributors. HC0201-18: Discussion of any existing or projected risks or Not Reported constraints with obtaining raw materials (or components) within the supply chain, including those related to restricted/limited availability, political situations, local labor conditions, natural disasters, climate change, or regulations.

Medtronic 2015 INTEGRATED PERFORMANCE REPORT | GRI Supplement 103 710 Medtronic Parkway Minneapolis, MN 55432-5604 USA Tel: (763) 514-4000 Fax: (763) 514-4819 UC201602534 EN © 2015 Medtronic. All Rights Reserved. medtronic.com