Medtronic 2015 Integrated Performance Report

FURTHER,

TOGETHER

2015

INTEGRATED

PERFORMANCE

REPORT

CEO LETTER …………………………………………………………………………………………………………………………………… 3

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

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | TABLE OF CONTENTS 2

TABLE OF

CONTENTS

COVER PHOTO:

Read Hina’s Story on

page 11.

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 –



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





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.

FY2015 HIGHLIGHTS

 

allowing us to advance our Mission and invest in transforming the industry.

 

of addressing health problems in emerging markets such as China and India.

 

development programs.

 

professionals around the world.

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.

 





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.

 

Medtronic therapies. This is and has always been one of our most important metrics — how many lives we impact

around the world.



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



MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | CEO LETTER 3

CEO

LETTER

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FY2015 FINANCIAL HIGHLIGHTS 4

$47.6

MILLION INVESTED IN

EMPLOYEE TRAINING

AND DEVELOPMENT

VALUE TO SOCIETY

8.1

OF TOTAL SALES

INVESTED IN RESEARCH

AND DEVELOPMENT

$89.7

MILLION

IN PHILANTHROPIC GIVING

BUSINESS GROWTH

WORKING RESPONSIBLY

NON-REGULATED

WASTE

DOWN 5

PER UNIT OF REVENUE

FROM 2013

EMISSIONS AND

ENERGY USE

DOWN 7

PER UNIT OF REVENUE

FROM 2013

29,410

EMPLOYEE

HOURS

VOLUNTEERED THROUGH

PROJECT 6

FY2015 HIGHLIGHTS

* FY2015 based on Medtronic ﬁscal year as reported and reﬂects the one-quarter

contribution of the Covidien transaction, which closed on January 26, 2015.

$20.3 B

IN REVENUE

Alleviate Pain. Restore

Health. Extend Life. This is

our Mission at Medtronic. It’s

the reason we’ve developed

an unprecedented breadth

and depth of innovative

therapies for more than 60

years. And it’s the reason

millions of lives are improved

by a Medtronic product or

therapy each year.

But we must do more. And we need to

do it in partnership with others across

the industry to address these three

universal needs:

Improve outcomes for better care

Increase access to therapies so



them are treated

Improve healthcare delivery to



overall costs

Our business strategy consist of

three strategic priorities — therapy

innovation, economic value creation,

and globalization — aimed at

addressing those universal needs

(see Financial Strength for more

information).

Our acquisition of Covidien on January



making us uniquely positioned to

alleviate pain, restore health, and

extend life for more patients around

the world. Together as one company,

we remain committed to improving

the lives of patients through ground-

breaking medical technologies and

innovative healthcare services and

solutions. Solutions that reach more

patients in more markets while

delivering value for our customers.

ORGANIZATIONAL

PROFILE

The combination of Medtronic

and Covidien has created a

medical technology and services

company with a comprehensive





geographic reach. Our four

groups — Cardiac and Vascular,

Minimally Invasive Therapies,

Restorative Therapies, and

Diabetes — are committed to

improving the lives of people

through a wide range of medical

technologies, services, and

solutions.

Cardiac and Vascular Group

Our Cardiac and Vascular Group

(CVG) brings all Medtronic cardiac

and vascular businesses together

into one cross-functional,

collaborative operating unit.

CVG provides innovative and

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | COMPANY OVERVIEW 5

COMPANY

OVERVIEW

KEY FACTS ABOUT THE NEW MEDTRONIC PLC

Number of employees 

Number of countries we operate in Approximately 160

Research and development spend 

Number of patents 



Medtronic employed 46,638 people at the end of FY2015 (excluding temporary or contingent workers).

$15,508

FY2011

$3,096

FY2012

$16,184

$3,617

FY2013

$16,590

$3,467

FY2014

$17,005

$3,065

FY2015*

$20,261

$2,675

TOTAL SALES AND NET EARNINGS

($ millions)*

Total Sales

Net Earnings

*FY2015 based on Medtronic

ﬁscal year as reported and

reﬂects the one-quarter

contribution of the Covidien

transaction which closed on

January 26, 2015.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | COMPANY OVERVIEW 6

SCOPE OF THIS

REPORT

This report covers Medtronic



ended April 24, 2015 (FY2015). On

January 26, 2015, we completed

the acquisition of Covidien —

now operating primarily as the

Minimally Invasive Therapies

Group, with its Peripheral

Vascular business now a part of

CVG and Neurovascular business

now a part of RTG. Due to the

timing of this acquisition late in

FY2015, the data in this report

excludes Covidien’s operations,

except where otherwise noted.

Our 2016 report will be our



company, Medtronic.

pelvic region, and kidneys, as well as

obesity and preventable complications.

Surgical Solutions

Patient Monitoring and Recovery

Restorative Therapies Group

The Restorative Therapies Group (RTG)

provides innovative, life-changing

restorative therapies and services to

meet the needs of millions of people



of chronic medical conditions.

Spine

Neuromodulation

Surgical Technologies

Neurovascular

Diabetes Group

The Medtronic Diabetes Group is the

world leader in advanced diabetes

management solutions, including

integrated diabetes management

systems, insulin pump therapy,

continuous glucose monitoring

systems, and therapy management

software. The group also provides

unrivaled, around-the-clock service

and support to consumers and

healthcare professionals.

Intensive Insulin Management

Diabetes Services and Solutions

Non-Intensive Diabetes Therapies

$9,361

Cardiac and Vascular

Group

$2,387

Minimally

Invasive

Therapies

Group

$6,751

Restorative Therapies

Group

$1,762

Diabetes

Group

FY2015 TOTAL SALES BY BUSINESS UNIT

($ billions)*

Total Sales $20,261

*FY2015 based on Medtronic ﬁscal year as reported and reﬂects the one-quarter

contribution of the Covidien transaction which closed on January 26, 2015.

comprehensive solutions,

including the industry’s broadest

portfolio of technologies as well

as programs and services that

drive economic value across the

care continuum.

Cardiac Rhythm and Heart

Failure

Coronary and Structural Heart

Aortic and Peripheral Vascular

Minimally Invasive Therapies

Group

The Minimally Invasive Therapies

Group (MITG) aspires to enable earlier

diagnoses, better treatments, faster

complication-free recoveries, and

enhanced patient outcomes using less

invasive solutions. MITG’s initial focus

areas include diseases and conditions

of the gastrointestinal tract, lungs,

Sustainability isn’t just a nice

idea; it’s a core value for our

business. One that reduces

risks, creates opportunities,



enhances our reputation.

By making sustainability a

central value at Medtronic,

we add to the already positive

societal impact of our

products and operations.

UNDERSTANDING

OUR RISKS AND

OPPORTUNITIES

As a global leader in medical

technology, our business generates





time this can come with challenges.



to understanding how sustainability, in

all its facets, relates to our business.

With this in mind, in FY2014 we

conducted an extensive review of

all sustainability topics relevant to

Medtronic. We invited input from

internal and external stakeholders,

and mapped the external priorities

against our business imperatives.

Understanding the perspectives

of external stakeholders, including

healthcare providers, policy makers,

and investors, holds us responsible to

their needs. It is also a vital component

to mitigating risk and running an



following conclusions drawn from our

sustainability materiality assessment:

Investors are attracted to a well-

managed business that anticipates

trends and manages emerging risks.

Healthcare customers seek a

business partner that helps them



aligns with their values, and

supports their sustainability goals.

Government policy makers and

regulators give more weight to

the views of companies that are

recognized as sustainability leaders.

Potential partners collaborate with

corporations they trust to support

their social and environmental

missions.

Thought leaders, including

nongovernmental organizations

(NGOs), academics, and the media,

provide new insights that help

enhance our reputation.

Materiality Assessment

Based on our formal assessment of

stakeholders’ sustainability concerns,





1. Access to Care: championing

the widest access to healthcare

globally across various systems and

budgets.

2. Product Quality: ensuring that our

products and services unfailingly

comply with the highest standards

of safety and reliability.

3. Ethics in Sales and Marketing:

leading our industry as trusted

partners who always act with

integrity.

4. Responsible Sourcing: collaborating

with our supply chain to develop

long-term relationships that

enhance product quality, worker

rights, and environmental

protection.

5. Product Stewardship: minimizing

the life cycle footprint of our

products and packaging through

design innovation.

As we develop our sustainability

strategy incorporating Covidien,



our focus and resource allocation.







opportunities of importance

to Medtronic: trial data,

stakeholder engagement, device

security, philanthropy, post-

market surveillance, corporate



strength. All of these important

areas are addressed in this report.

REDUCING RISKS

Our management and

governance of sustainability

issues impacting our business is

integral to our risk management

strategy. Our Enterprise Risk

Management group participates

in our materiality assessment. In

our day-to-day operations, key

sustainability issues are managed

within functional groups,

rather than by a centralized

team. Functional groups work

to control business risk by

advancing corporate citizenship

and sustainability practices.

These groups include: Business

Development and Strategy;



and Compliance; Sourcing;

Human Resources; Environment,

Health, and Safety; Medtronic



and Regulatory.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | SUSTAINABILITY RISK AND OPPORTUNITY 7

SUSTAINABILITY

RISK AND

OPPORTUNITY

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | SUSTAINABILITY RISK AND OPPORTUNITY 8

Emergency Response: actions

to ensure health and safety,

protect physical structures,

and limit environmental

impact.

Crisis Management and

Mobilizations: coordination of

our responses to crises.

Our crisis management teams



manage issues and synchronize

responses across the business.

The Corporate Crisis Team

provides regular updates to

the Executive Committee,

ensuring that crisis strategies

and protocols are executed

appropriately. For issues with



impacts, the Medtronic Global

Command Center responds, and

our Corporate Crisis Filter Team

determines the appropriate level

of response.

CREATING

OPPORTUNITIES

Our sustainability programs

closely track our business

objectives, opening doors

to create new opportunities

through sustainability leadership

and innovation. Sustainability





business opportunities, deepen

relationships with existing

customers, and respond to

investor requirements.

MANAGING BUSINESS

CONTINUITY AND RISK

Through our Business Continuity

Management Program, we address

disruptions that could impact our

operations or supply chain. We work

proactively, focusing on four key areas:

Business Continuity Planning:

strategies to ensure that we can

continue to operate and meet

demand.

IT Response and Recovery: plans

designed to respond to failures

in technology and recover the

infrastructure that supports

business continuity.

The table below outlines our main

sustainability risks and how we

manage them. These risks are subsets

of the risk factors described in our



Securities and Exchange Commission

(including Forms 10-K and 10-Q), which

readers of this integrated report are

encouraged to review for additional

information concerning risks that may



cannot guarantee that even the most



or prevent impact on our business

success.

SUSTAINABILITY RISK AREA HOW WE MANAGE RISK

Reputational damage from

unethical behavior

We walk the talk against corruption and



Ethics and Compliance trains every employee to

comply with the letter and spirit of The Compass:

Our Code of Conduct for Living Out Our Mission.

Employees receive other compliance training

that is relevant to their jobs.

Failure to meet customer

sustainability requirements

Our quality, access, and environmental programs

are designed to meet or exceed all customer

product and service requirements.

Changing ethical, social, and

environmental regulations



function groups track relevant regulations in

leading markets including the European Union,

United States, and China. We engage with

industry organizations and regulators to educate

them about our industry and to prepare for

emerging and pending regulation.

Increased costs from end of

product life obligations

We anticipate that Medtronic will increasingly be

expected to exercise stewardship over the full

life cycle of its products and packaging, including



planning for this requirement.

INTEGRATED

REPORTING AT

MEDTRONIC

We believe that our

integrated report provides

a comprehensive overview



way that we do business,

considering the social and

environmental factors

and impacts. By working

responsibly, we believe that

we increase our ability to add

positive value to society.

Our Integrated Reporting

Index on page 76 highlights

some of the most important

ways that our business

success is tied to our social,

environmental, and ethical

performance.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | SUSTAINABILITY RISK AND OPPORTUNITY 9

Responding to Investor

Requirements

Institutional investors recognize



performance as an indicator of

forward-looking management and

proactive risk mitigation. Although the

level of investor engagement, subjects

of interest, and metrics requested

vary widely, our goal is to answer all

questions from our investors and

potential investors. We respond fully

to the Dow Jones Sustainability Index

(DJSI) investor ranking and satisfy

criteria for inclusion in the FTSE4Good

Index. Medtronic has been a member

of the DJSI North American Index since

2008, a member of the DJSI World

Index 2011–2014, and a member of the

FTSE4Good Index since 2001.

Meeting Customer Expectations

Our healthcare customers have their

own sustainability and citizenship

programs. As such, they seek business

partners that align with their values

and support their work. We strive to

remain their partner of choice so our

ethical and sustainability performance

is an ever-important factor in customer

relations. Business tenders now

commonly include scrutiny of our

sustainability credentials. We aim to

excel on these criteria.

As we lead our industry’s transition

to value-based healthcare, we

increasingly provide services within

our customers’ hospitals. For example,

we already operate 50 catheterization

laboratories in European cities. This

is a much more complex partnership

than our traditional role as supplier of

products, demanding an even higher

level of responsibility, integrity, and

trustworthiness.





reductions in our energy and

water use as well as the amount

of waste we generate. These

goals have clear environmental



operating costs for energy, water,

and waste disposal.

Our 2020 targets — from a 2013

baseline — are:

Reduce energy use per unit of

revenue by 15 percent.

Reduce non-regulated waste

per unit of revenue by 15

percent.

Reduce regulated waste per

unit of revenue by 10 percent.

Reduce water use per unit of

revenue by 10 percent.

Working toward these targets,



million in savings to date with

expected total savings in excess



seven-year goal period.

VALUE TO SOCIETY

For more than 60 years,

we’ve been driven by our

passion for healthcare

technologies that change



— and are alive today — due

to our pioneering advances

in medical technology. But

countless others can’t access

our products and therapies

due to lack of funding or

obstacles in their local

healthcare systems.

No company or organization

can solve the healthcare

access problem on its own.

However, by combining

Medtronic’s inherent skills

and expertise with the

knowledge and capacity of

local partners around the

world, we can maximize our

ability to make healthcare —

as well as our groundbreaking

technologies and therapies —

as accessible as possible.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ACCESS 11

ACCESS FURTHER, TOGETHER

CAN YOU HEAR ME NOW?



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.

Around the world, nearly 360 million people endure chronic ear infections



economic achievement can be devastating. While medical treatment



emerging markets without adequate access to care. In India, the problem



form of hearing impairment due to a lack of health education or limited

access to ear, nose, and throat (ENT) specialists.

Our groundbreaking Shruti program (meaning “to hear” in Hindi)

bridges this gap by equipping community health workers in poor urban

neighborhoods in India and Bangladesh with ear screening kits. Led by



and international organizations, the project also trains community health

workers in the basics of ear anatomy and hearing loss conditions.

Combining training with technology, Shruti also employs a mobile

diagnostic tool from medical device developer Icarus Nova and a treatment

management smartphone app from ClickMedix, a U.S.-based telemedicine

company. These tools enable the community workers to quickly screen

individuals, submit results to ENT doctors for review, and refer patients

for treatment.



reconstruct her eardrum, and now sees a specialist for regular checkups.

Successfully recovered, Hina is currently pursuing her college degree and

loves dancing to Bollywood songs with her friends.







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?”

Hina

INNOVATIONS THAT

CHANGE LIVES

We constantly look for meaningful

innovations that can improve access to

healthcare and meet unserved medical

needs. Our goal is to invent products

and therapies that treat conditions



expanding the reach of transformative

treatments. Beyond products and

therapies, we also generate clinical and

economic value by improving business

models for healthcare delivery.

Developing New Products and

Therapies

Since 1949, Medtronic’s success has

been driven by innovation in healthcare

technology. Our people work

relentlessly to develop new therapies

to address a wide range of chronic

diseases — including heart disease,

diabetes, neurological diseases, spinal

conditions, and vascular diseases.



billion, or 8.1 percent of total sales, in





healthcare providers, governmental

organizations, and other partners to

identify needs and solutions. In addition

to developing mainstream products



emerging markets like China and India

work on transformative solutions to

regional health problems.

Medtronic’s integration with Covidien



our business that will help us continue

to increase our ability to meet patient

needs across our markets.

Clinical Research Programs

Clinical research is an essential step in



of the new products, technologies,

and therapies we aim to introduce. We

conduct clinical trials in accordance

with our Clinical Trial Principles and all

applicable regulations. See page 23 for

more information.

In FY2015 many of our clinical trials

advanced breakthrough innovations

that demonstrate both clinical and

economic value. Some highlights

include:

Cardiac Resynchronization

Therapy: In August 2014, our



division launched a post-market

clinical trial to compare patient and

healthcare system outcomes of

heart failure patients with cardiac

resynchronization therapy (CRT)

devices that have AdaptivCRT

enabled versus those with the

standard therapy. The AdaptivCRT

system customizes therapy to

patients’ individual needs and

preserves normal heart rhythms.

The trial, which is the largest CRT

trial to date, includes 3,000 patients

in 200 healthcare centers around the

world.

Predictive Low Glucose

Management Technology: In

October 2014 our Diabetes group

announced the launch of a clinical

study of our Predictive Low Glucose

Management (PLGM) technology,

which takes a critical step toward



pancreas for diabetic patients. The

trial evaluates the safety of the

integrated insulin pump and

glucose monitoring system

which automatically monitors

and controls insulin delivery.

The study covers more than

80 subjects who received

the new sensor, which is

80 percent smaller than

existing technologies on the

market. It will also evaluate

the safety of the new PLGM

algorithm as well as its ability

to prevent hypoglycemia,

which is a common occurrence

and concern in diabetes

management.

Deep Brain Stimulation

Therapy: In February 2015,



Stimulation of the Anterior

Nucleus of the Thalamus in

Epilepsy (SANTE) trial were

published online by Neurology.

The SANTE trial is the largest

clinical study of deep brain

stimulation (DBS) therapy

for epilepsy in adults with

treatment-resistant epilepsy.

Medtronic is currently

pursuing commercial approval

for the therapy in the United

States from the U.S. Food and

Drug Administration.

Transcatheter Aortic Valve

Replacement: In March

2015, the results of the

two-year High Risk Study of

the CoreValve U.S. Pivotal

Trial were announced at the

2015 American College of

Cardiology conference. The



lower mortality rates among

patients receiving the

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ACCESS 12

Noncommunicable diseases

are among the world’s greatest

health issues. At present,

they account for 68 percent

of all deaths worldwide —

killing 38 million people a year.

Alarmingly, this toll is expected

to rise by 36 percent by 2030.

Reversing this trend, and

improving the lives of those

living with chronic health

conditions, drives Medtronic

every day.

World Health Organization, 2014. “Global

Status Report on Noncommunicable

Diseases, 2014.” Available at:

http://www.who.int/nmh/publications/

ncd-status-report-2014/en/.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ACCESS 13

KEY PRODUCTS AND THERAPIES

RECEIVING REGULATORY APPROVAL IN FY2015

MAY



JULY



AUGUST



SEPTEMBER



OCTOBER



Conformité Européene (CE) mark for the NC Euphora™ Noncompliant Balloon Dilatation Catheter.

FDA approval to market the PRESTIGE

LP Cervical Disc System for the treatment of single-level cervical disc disease

(radiculopathy and/or myelopathy).

Launch of the NuVent™ EM Sinus Dilation System for the Fusion





surgery.

FDA approval for the Attain Performa

Model 4298 quadripolar lead that optimizes cardiac resynchronization therapy

delivery through greater options to maintain lead positioning.

FDA approval of the Viva

Quad XT and Viva

Quad S cardiac resynch.

CE Mark for the 23 mm CoreValve

Evolut™ R System for transcatheter aortic valve implantation (TAVI).

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.

FDA approval of CapSureFix Novus™ MRI SureScan

5076 Lead for use with magnetic resonance imaging (MRI).

The lead is approved for MRI scans positioned on any region of the body when paired with a Medtronic dual-chamber

MR-conditional pacemaker.

PRESTIGE

NC Euphora™

NuVent™ EM

CapSureFix Novus™

TYRX™ Absorbable

Envelope

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ACCESS 14

KEY PRODUCTS AND THERAPIES

RECEIVING REGULATORY APPROVAL IN FY2015

NOVEMBER



DECEMBER



FEBRUARY



MARCH



APRIL



CE Mark for the Resolute Onyx™ Drug-Eluting Stent (DES), which treats coronary artery disease. The stent features

CoreWire Technology that enables increased visibility and improved deliverability during procedures.

Japanese regulatory approval for the Evera MRI™ SureScan



resonance imaging scans positioned on any region of the body.

FDA approval of the Medtronic IN.PACT Admiral drug-coated balloon, used to reopen blocked or narrow arteries in the

upper leg due to peripheral artery disease (PAD).

FDA approval of two additional Attain Performa

left ventricular quadripolar leads — Attain Performa

Model 4298

quadripolar lead, and the Viva

Quad XT and Viva



can be paired with the Medtronic Viva

Quad XT and Viva



to treat heart failure.

FDA approval for the VenaSeal™ closure system. This minimally invasive procedure uses a specially formulated medical





FDA clearance for Endo GIA™ Reinforced Reload with Tri-Staple™ technology.

 

greater accuracy and control during treatment procedures.

FDA approval of the CoreValve

System for valve-in-valve procedures in patients whose surgical aortic heart valves have



and extreme risk patients who have limited options or may otherwise go untreated.

CE Mark for the Micra

Transcatheter Pacing System (TPS), the world’s smallest pacemaker.

Attain Performa

Quadripolar Lead

Pipeline™ Flex

CoreValve

System

Evera MRI™

SureScan

Micra

Transcatheter

Pacing System

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ACCESS 15

In April 2015, we completed our

acquisition of Diabeter, a Netherlands-

based diabetes clinic and research

center. The center provides

comprehensive diabetes care for more

than 1,500 children and young adults



foray into integrated care services



Solutions division intends to expand

the Diabeter model across Europe.

Telehealth services can improve

healthcare access for patients,

especially after they return home from

the hospital. Our Cardiocom business



services for monitoring patients

after medical procedures which helps

prevent rehospitalization in heart

failure patients. Both patients and



term health outcomes and reduced

readmission rates.

BREAKTHROUGH

SOLUTIONS FOR ACCESS

TO CARE

Our vision is a world where all people



have access to them. We consider

local conditions and develop disruptive



worker training to diagnostic testing

and product design. In this way we

target the systemic problems on the

ground that prevent people from

getting the care they need.

to operate their facilities, improving



care. The program’s initial focus is





laboratory facilities. Early results are



Imperial College in London, Medtronic



in cost savings over nine months



increasing the number of procedures

conducted by over 30 percent. Hospital

Solutions represents a large, long-

term growth potential for Medtronic.

In FY2015, we signed partnerships with

50 hospitals to manage catheterization





years.

In Hyderabad, India, a Hospital

Solutions partnership with CARE

Hospitals will set up heart failure clinics

to provide integrated care to diagnose,

treat, and manage congestive heart

failure. In India, congestive heart failure

presents, on average, a decade earlier

for patients than in Western countries.

The new clinics will focus on enhanced

therapy delivery and management of

heart failure, and improving outcomes

by bringing patients closer to the

cardiologists.

In FY2015 we also piloted an expansion



operating room (OR) management.

Building on experience gained in

catheterization lab management and

the OR technology expertise of our

Minimally Invasive Therapies Group,

we are well positioned to provide full-

service OR management to hospitals.

Transcatheter Aortic Valve

Replacements compared

with Surgical Aortic Valve

Replacement in patients with

high risk for surgery.

Minimally Invasive Colectomy

Procedures: In March 2015,

the journal JAMA Surgery



suggesting that minimally

invasive, laparoscopic

colectomy procedures can



costs, reduce recovery times,

and lower complication risk

compared with open surgery



address procedures usually

performed to treat digestive

health conditions including

diverticulitis, Crohn’s disease,

ulcerative colitis, and cancer of

the colon and rectum.

Solving Market Challenges

New products, technologies,

and therapies cannot transform

lives and bring healthcare to





systems. With the rising costs of



to increase access, Medtronic

invests heavily in exploring

new business models that help

overcome systemic challenges

impacting the cost and quality of

care.

We bring our expertise to new

models for managed services. In

FY2014, we launched Medtronic

Hospital Solutions, a business

unit that partners with hospitals

Our systemwide, value-

based approach begins with

the question: What are the

barriers to care for people



that we have the expertise

and experience to overcome?

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ACCESS 16

Community Health Access and

Global Health Access — provide

grants to support healthcare

for medically underserved

communities around the world.

We also made product donations



participate in the Partnership for

Quality Medical Donations. This

international alliance of private



brings quality healthcare

to underserved patients by

engaging local communities.

Members and partners support

research and educational forums

that contribute to improved

guidance on medical donations,

and provide product and cash

donations as well as volunteer,

training, and other services

that support disaster relief and

improved access to care.

See Community Investments

for more information about our



Leveraging Global

Partnerships

No single company or

organization can solve the global

access to care challenge. By

leveraging our skills and expertise

with the knowledge and capacity

of expert local partners, we can

scale our impact and connect

more patients with the care they

need.

world. The Medtronic Global Health

Initiative supports the development

of programs and initiatives that target

social impact and unmet healthcare

needs. We work closely with employees

across business units to bring new ideas

for product and service innovations

to market and test new ways to treat

diseases and their root causes.

Pending pilot business solutions that

align our expertise with local needs in

emerging markets include:

Colombia:

between 15 and 30 percent of the



ostracized due to social stigma

surrounding the condition. Existing

treatment options are expensive

and we are exploring physical

therapy alternatives better adapted

to local needs.

Ghana: Hypertension is a

widespread problem, but products

and therapies to treat it are

underutilized in the country, due to a

lack of cardiologists.

Mexico: Type 2 diabetes is

very common among Mexican

populations. New services and

capabilities at local health clinics

may be able to treat patients who

don’t have access to larger hospitals.

Expanding Access through

Philanthropy

In addition to our Global Health

Initiative work, we directed more



dollars toward access initiatives in

FY2015. Our two hallmark programs —

Patient Access

Acceleration

Our Patient Access Acceleration (PAA)

program supports data analysis to

bring our products and therapies to



them by:

1. Quantifying the business

opportunities and potential impacts

of a therapy or product.

2. Identifying and understanding



therapies or products.

3. Allocating resources to programs

and initiatives that can overcome

these barriers.

PAA helps us evaluate and manage

market opportunities in ways

that increase access and deliver

better patient outcomes for more

people. Our expertise also helps

local healthcare providers focus

their own developments toward

critical market needs. With this in

mind, we are developing consulting

services — Patient Access Solutions

(PAS) — to bring our PAA process to

hospitals around the world. In FY2015,

we completed 12 PAS consulting



patents related to our PAA and PAS

process and methodology.

Improving Health for the

Underserved

We encourage our talented and

dedicated employees to come up

with “out-of-the-box” thinking on

healthcare breakthroughs, applying

passion, knowledge, and ingenuity

to healthcare challenges around the

“The Global Health

Initiative’s charge is to

develop new business

models and end-to-

end solutions that are



and scalable over time.

We are focused on the

diseases where we have

the most expertise, and



about our technologies

so that we can leverage



base to think, design, and



Dr. Daniel Grossman, Senior Director,

Global Health Innovation

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ACCESS 17

Healthy Heart for All (HHFA),

India: Working with local

hospitals, we created the

HHFA program in 2011. This

program increases patient

access to cardiac therapies by



health hotlines, patient

counselors, heart screenings,

and other outreach activities.

In FY2014, the program

expanded to the Philippines.

Partnership for Innovative

Healthcare Delivery). We partner

with other innovators within this

unique network to co-develop



scale existing programs, and share

lessons learned from best-practice

models around the world. One major

collaboration to date is our Shruti

initiative in Asia.

market in the region, where about



by chronic kidney disease. The

development of this new therapy



India and a Medtronic hemodialysis

manufacturing plant in Chengdu,

China, which opened in FY2015.

Innovations in Healthcare: As a

founding member, we continue to

work with Innovations in Healthcare

(formerly the International

In FY2015, highlights of our work

with partners included:

Apollo Hospitals, India: Since

October 2013, we have worked

with Apollo Hospitals, the

largest healthcare provider in

India, to address end-stage

renal disease for patients

who need renal replacement

therapy. The goal is to bring



hemodialysis system to

FURTHER, TOGETHER

EXPANDING DIABETES CARE FOR YOUTH IN

KAZAKHSTAN



Historically, diabetes care has been underfunded in the country, with vast regional



innovative partnership, Project Baiterek, with the Kazakhstan government, local

thought leaders, and patient advocacy groups to improve health outcomes for



capacity building, and infrastructure development.







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



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.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ACCESS 18

programs reached 50,796 healthcare

professionals in FY2015, including

surgeons and specialists. Examples

include:

Bangladesh: We operate a dedicated

health worker training center at our



National Institute of Cardiovascular

Diseases (NICVD) to provide

training and infrastructure for

catheterization labs that diagnose

heart conditions. We held three

trainings at our center during

FY2015 and conducted two more at

NICVD.

China: Our Medtronic Patient

Care Center in Beijing and our

hospital-based patient care centers

in 31 additional hospitals train

physicians, patients, and their family

members on available treatments

and therapies for common

chronic diseases. In FY2015, the



training programs attended by 197

physicians. Around the country,

1,138 people participated in 52

events and 5,212 more tapped into

our information hotline and website.

India: We provide courses for

doctors at specialized Therapy

and Procedure Training Centers

in Mumbai, Chennai, and Delhi,

as well as through hospitals and

medical colleges throughout the

country. In FY2015, 1,890 healthcare

professionals received training in

220 programs.



hospitals in 28 cities, HHFA has

provided cardiac screenings

to more than 46,800 people

and treatment to more than

12,000 from 2011 through

April 2015.

Johns Hopkins Center for

Bioengineering Innovation

and Design (CBID): Each

year, Medtronic engineers

and scientists partner with

Biomedical Engineering

master’s degree students

from Johns Hopkins University

in Maryland to explore new

solutions to increase access

to pacemakers in emerging

markets. Most recently,

the teams have focused on

pacemaker adoption and

utilization across geographies

and healthcare systems in

India, and developed programs

to improve both diagnostics

and access to therapies.

Building Healthcare

Capacity

Training healthcare professionals

is fundamental to expanding

patient access to care, especially

in low-income countries. In



in patient education initiatives



building and training activities

for medical professionals. Our

ECONOMIC

VALUE

CREATION

STRATEGY

Prioritize and

develop based on

Economic Value

COMMERCIALIZE

Pilot, scale, and

deploy broadly

EVIDENCE

Generate clinical

and economic

proof points

INNOVATE

Iterate products

and programs

MEASURE

Track ROI to

Medtronic

United Arab Emirates: In FY2015,

we launched the Medtronic

Academy with the University of

Sharjah in Dubai. The program

provides cardiac care and product

training to physicians from around

the region, in both laboratory and

classroom settings. In the program’s



professionals received training, and

more than 20 courses are planned

for FY2016.

BETTER PATIENT

OUTCOMES PROVIDE

BETTER VALUE



that both improve patient outcomes

and reduce cost. We work consistently

with our stakeholders to champion

value-based healthcare models that

deliver cost savings for the healthcare

systems and patients we serve. We

seek to improve the economic value

of our products and therapies, reduce

product costs, and expand access

through reimbursement, risk sharing,

and appropriate pricing.

Economic Value Assessments



step economic value assessment

process to measure and demonstrate

the lifetime value of our products and

therapies to the patients who depend

on them. By focusing on innovations

that deliver real economic value while

addressing critical healthcare needs,

we can improve market penetration

and establish Medtronic as a leader in

healthcare innovation.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ACCESS 19

outcome requirements to product

pricing and reimbursement schedules.

As a result, Medtronic can share

long-term accountability for patient

outcomes, creating shared interest in

health results.

In February 2015, Medtronic announced



U.S. for TYRX absorbable antibacterial

envelopes. These hold pacemakers and



in place, releasing antimicrobial

compounds over a seven-day period

to reduce infection risks following

surgery. Under the terms of this

contract, Medtronic guarantees a

certain reduction in infections, which

are costly to the hospital, when the

TYRX envelopes are used.

We also work to improve the



models include: volume pricing and

rebate models for hospitals, adaptive

pricing for long-term condition



to new and existing patients through

charitable programs, payment plans,

and other programs.

healthcare system. In addition, we

believe that outcome-based payment

structures make all stakeholders in

the healthcare industry, including

Medtronic, more accountable. Not only



the people receiving our products,

but they also better align with the



product manufacturers and providers.

In FY2015, the U.S. Medicare system

announced that it is moving toward

outcome-based payments, and we

expect other major healthcare payers

to follow suit.

Medtronic’s Global Health Economic

and Reimbursement Team executes

our economic value strategy, in

line with the evolving healthcare

environment. The team continually

analyzes the impact of our product

reimbursement policies and pricing on

the adoption and use of our medical

devices and therapies. In addition, the

team supports our business units in

developing tools and resources that

improve reimbursement and pricing

strategies.

In FY2015, we began exploring

performance-based risk contracts to

improve accountability in our product



product performance and/or patient

Product Cost Savings

We have been working toward



billion in product cost savings by



on streamlined manufacturing



new developments in product

design that reduce costs and

improve performance. As we

integrate with Covidien, we are

reevaluating our goals with regard

to cost savings to incorporate the

cost savings initiatives of both

companies.

Product Pricing and

Payment

Medtronic and our stakeholders

across the healthcare sector

are engaged in an important

and ongoing conversation

about rising healthcare costs.

We understand and support

the increasing demands from

healthcare providers, payers, and

purchasers for transparency and

accountability in how companies









only outcomes, but also lead



MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | PATIENT SAFETY 20

Our innovations have the

power to change lives. But

they also must be safe. That’s

why across our business

we apply rigorous controls

to ensure the safety and



Our multitalented team

of Medtronic scientists,

engineers, and clinicians are

committed to our culture of

accountability and excellence.

And that commitment shows

up in all facets of product

development. From the way

we develop new ideas, to how

we conduct clinical trials and

research, manufacture our

products, and monitor them

in use, we keep patient safety

top of mind.

PATIENT

SAFETY

FURTHER, TOGETHER

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

combined and proven histories of quality performance and product

reliability. Covidien’s strengths in product quality highlight just

how well aligned our priorities and capabilities are, and how we can

leverage the best of both companies.



fosters long-term capability building among employees,

empowering them to promote excellence and show individual



This closely mirrors Medtronic’s long-standing commitment to

individual responsibility for quality and product safety in every job

function.



Star of Excellence Award, recognizing their extraordinary

performance, innovation, and measurable results.

Built on the foundation of continual improvement, our integration

with Covidien creates new opportunities to enhance systems and

further embed quality into our culture. Across Medtronic, we are

rolling out new trainings and communications campaigns about

our quality commitment, targeted information, and education for



through recognition for individuals who exemplify a personal

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.



Me across our combined business. By sharing resources and best



will go further, together.

COMMITTED

TO PRODUCT

RESPONSIBILITY AND

QUALITY

We design and manufacture

medical devices that patients

rely on daily, many of which are

implanted inside their bodies.

To protect patients’ health and

ensure their peace of mind, it is

imperative that these products,

and the materials they are made

of, are of the highest quality.

Medtronic insists on quality and

safety at every stage of the value

chain. We reinforce our product

safety culture by requiring

online Annual Quality Training



worldwide. We exceeded our



in FY2015, with more than 99

percent of employees taking the

training.

Our Design Reliability and

Manufacturability (DRM) program



safety and reliability from

inception. Testing that simulates

real-world product use helps us

predict patient outcomes.

The Medtronic Operating System

(MOS) embeds quality into

production by applying Lean Six

Sigma principles, a team-based

methodology for reducing waste



constant improvement. We also

use International Standards

Organization (ISO) 13485, a

leading standard for comprehensive

quality management systems that

meet international medical device

regulations, to guide processes in our

manufacturing facilities. In FY2015, 95

percent of our owned manufacturing



To further standardize and synchronize

quality systems across our global

sales and distribution centers, we

introduced the World Quality program

in FY2015, which will fully roll out by

early FY2017. World Quality focuses on

core requirements in quality systems,

post-market surveillance, supplier

engagement, and operational quality.

It outlines minimum standards within a



to local regulatory requirements. Local

teams are conducting assessments to

identify gaps between current practice

and new World Quality standards. We

will implement detailed plans to align

all activities and operations with the

new program. Overall, World Quality

will help smoothly integrate Medtronic

and Covidien’s quality management

systems, while strengthening risk

management as we continue to grow in

new and emerging markets.

We also insist on and monitor safety

and quality performance in our third-

party manufacturers. While we do

not require third parties to adopt

our system, we provide training and

learning opportunities to help them

build their own systems and capabilities

that align with our expectations.

For more information about our

responsible sourcing and approach to

supply chain management, see Supply

Chain.



QUALITY FACILITIES

Each year, our performance is

monitored and reviewed by regulatory

agencies that inspect our facilities for

quality and safety. In FY2015, we hosted

152 regulatory inspections at our

manufacturing facilities, of which 93



Our goal is to maintain an average of 0.5



we exceeded with 0.15 this year.

Regular inspections help us understand

each regulatory body’s expectations

and priorities, allowing us the continued

opportunity to improve. We share

what we learn through our Inspection

Knowledge Management process, and

roll out any necessary changes across

our global facilities.

We strive for compliance with evolving

regulatory expectations wherever we

make and sell our products. To this end,

our internal audit program, Medtronic

Corporate-Wide Assessment for

Regulatory Excellence (MCARE),

analyzes quality management



corrective action plans. MCARE

focuses on changing and emerging

regulatory requirements. In FY2015,

the team completed 28 investigations

and supported improvements at

Medtronic facilities at risk for process

control noncompliance due to new or

emerging regulations. Going forward,

we will expand MCARE’s reach to

manufacturing sites acquired through

Covidien.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | PATIENT SAFETY 21

“Continuing to earn the



of our stakeholders

through safe, high-



services, as well as

ongoing compliance

with global regulations

will help Medtronic

solve healthcare’s

biggest challenges and

take a leadership role

in improving patient

outcomes across the



Luann Pendy, Ph.D., Senior Vice

President, Global Quality

Learn about quality

performance at the Medtronic

Energy and Component

Center in Brooklyn Center,

Minnesota

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | PATIENT SAFETY 22

Research Collaborative of the

National Academy of Medicine.

Our hope is that enhanced post-

market surveillance capabilities

will improve our monitoring



to lifesaving products and

therapies.

Product-Related Regulatory

Actions

We are committed to resolving

all regulatory action and recall



using our expertise in quality

management to implement the

required action.

In FY2015, we had three open FDA

warning letters,

two of which

were resolved during the year.

Our third open warning letter

transitioned to an FDA consent

decree

, announced on April

27, 2015. The FDA agreement



II drug infusion pump and the

quality system at our Minneapolis

Neuromodulation locations.

The decree provides the FDA

with in-depth oversight of

necessary design changes

and enhancements to the

Neuromodulation quality system.

It also sets forth a clear process

that allows Medtronic to continue

providing physicians access to



manufacturer has violated FDA regulations.

A legal agreement between the FDA and a company,

which settles an FDA civil enforcement action (usually



actions that the company is required to take in order

for the injunction to be lifted.

Enhancing Post-Market

Surveillance



surveillance capabilities, but are always

looking for ways that post-market

research could be improved — for

our own products and across the

industry. We leverage our innovative



expertise as we collaborate with the

FDA and stakeholders across the

industry to enhance post-market

surveillance practices. More than 2,000

clinical researchers and statisticians



to contribute to the development

of new measurement models and

standardization that will improve

patient safety and clinical outcomes.

We also play a leadership role in the

Medical Device Innovation Consortium

(MDIC), a public-private partnership

that advances regulatory science in

the medical device industry. Our Chief





of directors and chairs the Clinical

Trial Innovation and Reform Steering

Committee. With patient outcomes

in mind, the committee’s goal is to



in research design, data collection, and

infrastructure both pre- and post-

market.





the Board of Governors of the Patient

Centered Outcomes Research Institute

since it was established as part of the





databases, the team captures critical

data on key products. In addition to

meeting the growing need for product

performance data by physicians, clinics,





analysis of our product performance

and informs product development. Our

partner network includes sites in North

America, Europe, and Latin America,

and continues to grow in line with our

business.

Medtronic therapies and product lines

currently under surveillance include:

cardiac rhythm, deep brain stimulation,

implantable cardiac monitors,

sacral neuromodulation, spinal cord

stimulation, surgical heart valves, and

targeted drug delivery devices.

For more than 30 years, we have issued

Product Performance Reports for

our Cardiac Rhythm and Heart Failure

products. This valuable information

assists physicians in better managing

their patients’ continuing care — such

as device survival estimates, physician

advisory summaries, and performance

details.

In addition, the Medtronic Implantable

Systems Performance Registry and

the Product Surveillance Registry have

monitored the performance of our

Neuromodulation business’s targeted

drug delivery and neurostimulation

products. For over a decade, these

systems have guided improvements in

quality and reliability for future product

development.

Standardization and

Integration

Our goal is to simplify quality

management across the

company. To do so, we must

standardize our quality systems,

become more scalable to support

global growth, and be more



and regulatory needs. As

Medtronic and Covidien continue

to integrate, we are building upon

the best of both companies,

engaging employees in a wide

range of functions including



chain management, quality, and

regulatory management.

MONITORING

PRODUCT USE AND

PERFORMANCE

Our quality commitment does not

end with the manufacture, sale, or

implantation of our products and

services. We continue to monitor

performance through post-

market surveillance, enabling

us to understand product

performance in a real-world

setting, measure performance

against known complications, and

identify potential problems early.

A dedicated team at Medtronic

conducts post-market

surveillance. Through a network

of partner hospitals, health

systems, physicians, clinics,

governments, and third-party

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | PATIENT SAFETY 23

Our Clinical Trials Registry details

information about the purpose,

eligibility requirements, locations,

and status of each trial that we

sponsor (see www.clinicaltrials.

gov). Key highlights of our clinical

research in FY2015 are included in

Access.

Open Data and

Transparency

Transparency in clinical research

is critical to maintaining patient



Medtronic publicly discloses

all clinical trials. We also seek





journals, and collaborate with

researchers and external

institutions.

Our commitment to transparency

extends to the data our clinical

trials generate. In 2013, we were



industry to make all clinical trial

data for a product — the Infuse

spinal fusion growth protein

— publicly available, through a

partnership with the Yale Open

Data Access Project (YODA).

While this action was taken

in response to complications

related to that product, we

learned from the process and



our industry, physicians, and

patients in the long term.

and all employees receive ongoing

education and reminders about their

responsibility to report product

complaints.

Safeguarding Patient Privacy and

Device Security

Safeguarding medical device-related

data is another critical element of

patient safety. See Governance for

more information.

CONDUCTING

RESPONSIBLE RESEARCH

AND CLINICAL TRIALS

Across the product life cycle, we

conduct clinical trials to measure,

and provide evidence for, their safety



ensure that our trials are conducted

responsibly, we follow rigorous

guidelines laid out in our Code of

Conduct, Global Business Conduct

Standards Policy, and Clinical Trials

Principles.

We also follow international guidelines

for clinical research, including

the International Conference on

Harmonization/World Health

Organization Good Clinical Practice

standards, and ISO 14155:2011 (which

addresses clinical investigation of

medical devices for human subjects),

where applicable. We engage with

organizations advancing clinical

standards development and

education, including the Clinical Trials

Transformation Initiative, the American

Society for Testing and Materials, and

the Global Harmonization Task Force.

TRACKING CUSTOMER

FEEDBACK

In addition to monitoring product

performance, each business unit tracks

customer and patient satisfaction

through surveys, customer visits,

and net promoter scores. Feedback is

systematically integrated into product

and service development to keep our

business responsive to customer and

patient needs.

We also provide customers with all

necessary information about proper

and safe use of our products and

therapies. Information is available

online, in device manuals, in published

clinical trial results, and in product

performance reports. Customers



training and education.

Product Complaint Handling

Our global complaint handling system

collects and manages customer

feedback about our products. Today,

each business has its own complaint

handling center, but we are working

to standardize the system in the



compliance. Our aim is to target

resources on unexpected product



investigation and resolution.

We require all employees and

distributors to report complaints

within 48 hours of receipt, and we

take corrective and preventive

actions as needed to resolve them.

New employees receive training

about reporting product complaints

the SynchroMed II pump for their

patients.



recall, we take all necessary

actions to correct or remedy

the root cause of a problem with

our products or packaging, and

have systems in place to prevent







recalls

during the year, as shown

below:

Medtronic Duet External

Drainage and Monitoring

Systems: http://www.fda.

gov/medicaldevices/safety/

listofrecalls/ucm403857.htm

FlexCath Select Steerable

Sheath: http://www.

accessdata.fda.gov/scripts/

cdrh/cfdocs/cfres/res.

cfm?id=134194



list product safety issues in the

FDA MedWatch Safety Alerts

for Human Medical Products

Database. The database provides

safety alerts and information

to healthcare providers about

medical products and devices

that may impact patient

treatment decisions. In FY2015,

Medtronic had no voluntary



database.

The FDA assigns a numerical designation (I, II, or III) to

a recall to indicate the relative degree of health hazard

presented by the product being recalled. The Class I

designation indicates the most serious type of recall.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | PATIENT SAFETY 24

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



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,

and conducts facility and program inspections twice a year.





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

Toxicology in Vitro and received the







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.

Kelly Coleman

MACRO TRENDS

OPERATING COSTS

Desire for better clinical

outcomes through the use of

medical technology

OPTIMIZE COST

& EFFICIENCY

Move to value-based

healthcare systems

EXPAND ACCESS

Growing demands in healthcare

in developing countries

THERAPY

INNOVATION

Build the business around

core customer groups

ECONOMIC VALUE

Deliver integrated health

solutions across the

care continuum

GLOBALIZATION

Expand into global value

segments, optimize sales and

distribution channels, and

innovate new business models

LONG-TERM HEALTHCARE MACRO TRENDS

MEDTRONIC GROWTH STRATEGIES

As committed as we are to

patient health, we’re equally

committed to maintaining



good stewardship of our



fully understand that when



we’re better able to improve

clinical outcomes, expand

access to healthcare, and

optimize healthcare cost and



As we pursue our growth

strategies of therapy

innovation, economic value,

and globalization, we also

ensure that our actions

and decisions around these



sound. That way, we can

deliver consistent growth and

returns while contributing to

the local economies where we

live and work.





private sectors in the

form of new jobs, supply

chain purchases, capital

expenditures, acquisitions

and investments, taxes,

charitable giving, and returns

to our shareholders.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FINANCIAL STRENGTH 25

FINANCIAL

STRENGTH

FURTHER, TOGETHER

ALIGNING OUR BUSINESS WITH

HEALTHCARE NEEDS

Medtronic continues to develop and deliver new therapies and



delivered reliable and consistent business and dividend growth (see

charts page 27). We achieved this by closely aligning our business

strategy with the long-term macro trends in healthcare. We continue

to steadily identify and track these trends in both emerging and

developed economies.

All of our business activity, including internal R&D, business



is focused on achieving our three strategic growth priorities, each

aligned with macro trends in global healthcare. We leverage our

portfolio of market-leading products, expertise, global footprint,



These are areas where we can position ourselves as a leader and add

real clinical and economic value.

SHAREHOLDER

RETURNS

INFRASTRUCTURE

INVESTMENTS

TAXES

PAID

SUPPLY CHAIN

RESEARCH AND DEVELOPMENT

INFRASTRUCTURE

COMPENSATION

AND

WAGES

OPERATING COSTS

COMMUNITY

INVESTMENTS

*Includes support of medical conferences, charitable grants,

and research and public education programs.

**Estimated fair market value.

ECONOMIC CONTRIBUTION TO SOCIETY

52%

Foundation

Giving

35%

Corporate

Cash

Contributions*

13%

Product

Donations**

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FINANCIAL STRENGTH 26

DELIVERING

STRONG FINANCIAL

PERFORMANCE



decision making is based on the



goals:

1. Deliver consistent mid-single

digit constant currency

revenue growth.

2. Grow earnings per share (EPS)

200 to 400 basis points faster

than revenue on a constant

currency basis.

3. Return 50 percent of free cash



On January 26, 2015, we

completed the acquisition of



statements reported in our 2015

Form 10-K and throughout this section

of the report include one-quarter

contributions of Covidien operations

from Q4 FY2015, except where noted

otherwise.

Revenue Growth

In FY2015, our annual revenue (net

sales) increased 19 percent as reported,

or 6 percent

on a comparable,

constant currency basis. All four of

our groups launched meaningful

innovations in FY2015, including those

that make advances into new disease

areas, build on our existing market-

leading technologies, or enhance our

diagnostic, therapy, and monitoring

products with key wraparound

programs. Revenue in emerging

markets grew 23 percent as reported,

or 12 percent

on a comparable,

constant currency basis during the

year — just short of our mid-teens

constant currency growth goal. We are

committed to improving our growth in

emerging markets by focusing on public

partnerships, private partnerships,

and optimization of our distribution

channels. We believe emerging markets

represent a long-term source of

revenue growth for the company.

Earnings Growth

Our FY2015 as reported net earnings



on a non-GAAP basis. Our as reported

diluted earnings per share (EPS)



on a non-GAAP

basis. The acquisition of Covidien is

only included in our fourth quarter

performance.

Free Cash Flow Growth

Our strong cash position

enables us to make investments

in capabilities and capital

improvements. These

investments enable us to meet

our strategic vision through

investments, while at the same

time continuing to return value

to shareholders via dividends

and stock repurchases. Changes

in foreign currency rates



our foreign currency revenues



Return to Shareholders for

our performance and evolving

approach following the

acquisition of Covidien.



reconciliation to the most comparable U.S. GAAP

measure see Non-GAAP Financial Measures starting

on page 31.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FINANCIAL STRENGTH 27

NET SALES BY OPERATING SEGMENT AND BUSINESS

($ millions)*

Cardiac & Vascular Group

Minimally Invasive

Therapies Group

Restorative Therapies

Group

Diabetes Group

Revenue Growth 0.8% 4.4% 2.5% 2.5% 19.2%

*Some data has been restated from FY2014 report and reﬂects data reported in our FY2015 Form 10-K

**FY2015 based on Medtronic ﬁscal year as reported and reﬂects the one-quarter contribution of the Covidien transaction which

closed on January 26, 2015

FY2011 FY2012 FY2013 FY2014 FY2015**

$15,508

$16,184

$16,590

$17,005

$20,261

FINANCIAL PERFORMANCE SUMMARY



FY2011 FY2012 FY2013 FY2014 FY2015*

Net Sales (Total)      

Net Sales (U.S.)     

Net Sales

(Non-U.S. Developed)

    

Net Sales (Emerging

Markets)

    

Net Earnings as

Reported (GAAP)

    

Net Sales (Total)

Growth (As Reported)

0.8% 4.4% 2.5% 2.5% 19.2%

Additions to Property,

Plant, and Equipment

    

Free Cash Flow***     

Net Repurchase of

Common Stock

(net of issuances)

    

Dividends to

Shareholders

    

Dividend per Share     

     



which closed on January 26, 2015.

** Restated from 2014 Integrated Performance Report.



Financial Measures starting on page 31.



EMPLOYEE COMPENSATION



FY2011 FY2012 FY2013 FY2014 FY2015*

Total Compensation**     

Salary and Wages     

     

*The compensation data contained in this table represents Medtronic operations for FY2015, excluding Covidien





SUPPORTING LOCAL

ECONOMIES THROUGH

OPERATING COSTS

We spend billions in our

communities each year investing

in the operations that keep our

business running. Funds are

allocated toward expenditures

such as: research and development

outlays; selling, general, and

administrative expenses; and

income taxes. In FY2015, our cost

of products sold represented 31.1

percent of net sales. Our research

and development expense was 8.1

percent of net sales, our selling,

general, and administrative

expenses totaled 34.1 percent

of net sales, and our non-GAAP

nominal tax rate was 18.2 percent

of pretax income.

Compensation and Wages

We contribute to local communities



employees around the world. In both

developed and emerging markets,

we are growing our manufacturing,



We are also investing in hiring and

developing local talent, and creating







billion in direct salary and wages, and







to the most comparable U.S. GAAP measure see Non-GAAP

Financial Measures starting on page 31.

SCALING OUR

IMPACT THROUGH

ACQUISITIONS AND

INVESTMENTS

Beyond investing in market and

product development, we seek

opportunities to cultivate our role

as a healthcare leader. We grow

our business through acquisitions

that bring new technology,

strategic skills, capabilities, and

expertise to Medtronic.

Acquisitions

We target acquisitions that strengthen

our core growth strategies — therapy

innovation, economic value, and

globalization.

Therapy Innovation:

gaps in our product and solution

portfolios for our core customer

groups.

Globalization: we focus on

expanding in value segment

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FINANCIAL STRENGTH 28

products, opportunities to optimize

our distribution channel, and

acquiring companies that have

developed interesting and creative

business models.

Economic Value: we look to build

out our integrated health solutions

beyond medical devices, with a focus

on the entire care continuum for the

range of diseases we serve.

We invest in opportunities that can





that will deliver mid-teens risk-adjusted

returns, result in minimal to no “net”

EPS dilution for shareholders, and

demonstrate clear economic value to

our business. FY2015 was a very active

and exciting year for acquisitions, as

detailed below.

Covidien

On January 26, 2015, we completed the

acquisition of Covidien, a global medical

device and supply manufacturer, in a



This was Medtronic’s largest medical

technology acquisition to date.

We believe the new Medtronic is

uniquely positioned to be a catalyst in

transforming healthcare.

Covidien’s product portfolio, now a

principal part of our Minimally Invasive

Therapies Group, and global reach will

help us achieve our vision of better

health outcomes all over the world.

The acquisition will also make our

business more competitive in the

face of emerging healthcare trends

and is aligned with our three growth

strategies. Covidien brings new breadth

MEDTRONIC EXPENSES

($ millions)

Cost of Products Sold

R&D Expense

Selling, General, and

Administrative Expense

Special Charges (gains)

Restructuring Charges,

Net

Certain Litigation

Charges, Net

Acquisition-related

Items

Amortization of

Intangible Assets

Other Expense, Net

Interest Expense, Net

Provision for

Income Taxes

*FY2015 based on Medtronic ﬁscal year as reported and reﬂects the partial year contribution of the Covidien transaction which closed

on January 26, 2015.

FY2011 FY2012 FY2013 FY2014 FY2015*

$12,453

$12,769

$13,123

$13,940

$17,586

to our portfolio of medical

products and services that will



for customers and patients

around the world, while increasing

our global footprint. Moreover,

Covidien provides greater

access to cash, enabling us to

invest for growth and meet our

capital allocation commitments

Return to

Shareholders).

Corventis

In June 2014, we acquired

Corventis, based in St. Paul,

Minnesota. Corventis developed

the SEEQ™ Mobile Cardiac

Telemetry System, an external,

wire-free, adhesive heart monitor

that can be worn for up to 30 days

to help detect and diagnose the

cause of irregular heartbeats.

The SEEQ MCT System remotely

monitors every heartbeat and

automatically transmits the

data via Bluetooth and cellular

connections to a monitoring

center.

Visualase

In July 2014, we bought Visualase,

Inc., a Houston, Texas, developer

of MRI-guided laser and image

guided systems for minimally

invasive neurosurgery. The

innovative company expanded

our Surgical Technologies

business portfolio. The deal



million in cash, including the

assumption of milestone-linked

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FINANCIAL STRENGTH 29

the opening of a new facility

in Chengdu, China, in FY2015,

which expanded our production

capabilities. The site will produce

Medtronic’s groundbreaking

hemodialysis solution, which

increases access to lifesaving

kidney treatment by reducing

water consumption, increasing

portability, and enabling remote

care. It also features a user-

friendly interface localized for the



it will help more patients in



lifesaving dialysis, including those

in small hospitals with limited

budgets, those in community

health centers, and even those

seeking at-home treatment.

We also invest in early-stage

start-ups whose innovative

solutions have groundbreaking

potential to improve lives. In

FY2015, examples included:

 

million Series B funding round.

Glooko is developing diabetes

management software

that will link existing blood

glucose testing systems with

smartphones.

 

DreaMed Diabetes, an Israeli

technology company whose

product connects continuous

insulin sensors with insulin

pumps, a step toward the



pancreas. The DreaMed

program will be integrated into

our diabetes portfolio.

neurostimulation products that treat

overactive bladder conditions. The

acquisition added an FDA-approved

nerve stimulator to Medtronic’s

portfolio.

Sophono

In March 2015, Medtronic bought

hearing aid maker Sophono as part of an

expanding ear, nose, and throat (ENT)

business in our Restorative Therapies

Group. The Boulder, Colorado-based

company sells magnetic hearing



and older. This acquisition enabled ENT



therapies and technology solutions

and supports Medtronic’s therapy

innovation strategy.

Diabeter

In March 2015, we completed the

acquisition of Diabeter, a Netherlands-

based provider of comprehensive

and individualized care for children

and young adults with diabetes. It



an integrated diabetes care model.

Our goal is to transform our Diabetes

Group from a market-leading pump and

sensor company into a holistic diabetes

management company that delivers



cost.

Investments

We invest in capabilities and initiatives

that accelerate our pace and breadth

of innovation, creating competitive



patients. One example of this was

payments. The acquisition of Visualase

is another example of Medtronic’s

ongoing investment in technology. It

also reinforces our commitment to



the entire surgical care continuum

as we strive to become the partner

of choice for neurosurgeons and

neuroscience centers around the world.

NGC Medical

In August 2014, Medtronic purchased

NGC Medical, a private Italian company

in which we owned a 30 percent stake.

A provider of managed care services

for cardiovascular suites, operating

rooms, and intensive care units, NGC

Medical accelerated Medtronic’s Cath

Lab Managed Services business. This

transaction represented another

example of Medtronic’s continuing





integrated care solutions to hospitals.

Sapiens Steering Brain

Stimulation

In August 2014, we purchased Sapiens



million cash transaction to expand

our brain modulation portfolio. The

Netherlands-based company develops

deep brain stimulation technologies

to treat neurodegenerative diseases

like Parkinson’s disease and essential

tremor.

Advanced Uro-Solutions

In February 2015, Medtronic acquired

Tennessee-based Advanced

Uro-Solutions, a manufacturer of

“Medtronic and

Covidien have joined

forces to pursue our

shared commitment

to addressing universal

healthcare needs and

accelerating Medtronic’s

three fundamental



innovation, globalization,

and economic value. We

know that our combined

business can have a

real and meaningful

impact on people’s

lives — helping to treat

more people, in more





Omar Ishrak, Medtronic Chairman



MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FINANCIAL STRENGTH 30

investments in the United States.

This meant we had to borrow

cash in the U.S. to fund our

shareholder commitment and

invest in the United States, while

our cash accumulated overseas.

The Covidien transaction

increases our accessible cash







can meet our commitments to



return 50 percent of our free cash





and acquisitions, and to increase

our investment in the United

States.



reconciliation to the most comparable U.S. GAAP

measure see Non-GAAP Financial Measures starting

on page 31.

Community Investments

We also make contributions

to the communities where we

live and work, as well as those

communities that have the

most urgent needs for access

to healthcare. Medtronic made

philanthropic contributions



during FY2015. See Community

Investments for more

information about our

charitable giving.

REFOCUSING

THROUGH

DIVESTURES

When needed, divestures provide

the opportunity to refocus our

business activities and product

and therapy portfolio on our

strategic priorities. In FY2015, we

sold our MicroFrance and Xomed

manual ENT and laparoscopy

medical equipment lines to

Integra LifeSciences Holdings.

Medtronic management and the

company’s board of directors

meet regularly to assess all

Medtronic businesses to ensure



ADDING VALUE

THROUGH TAXES

In part, we generate value for the

communities and countries where

we operate through the taxes we

pay, including income, real estate

sales and use, payroll, excise, and

value-added taxes. In FY2015, we had



resulting in an 18.2 percent

non-GAAP

nominal tax rate, including a global



The acquisition of Covidien and

establishment of our principal



Medtronic with access to cash from

Covidien’s overseas operations without



As part of this transaction, we are

able to access some of this overseas

cash to reward shareholders, grow our

business, and invest in innovation. We



in future growth in the United States.

Medtronic pays all applicable taxes on

foreign earnings in the countries in

which we do business.

FINANCIAL ASSISTANCE

Various stakeholder groups will

occasionally provide Medtronic



to attract and support long-term

investments in their geographies or

disease areas that are aligned with

our business strategies. In FY2015, we





globally. These incentives can take

various forms, including tax relief

and tax credits, investment grants,

research development grants, and

other direct incentives including



RETURN TO

SHAREHOLDERS

Our disciplined approach to allocating

capital supports our commitment to



to shareholders through dividends

and share buybacks. We focus on

delivering dependable dividend growth

for our shareholders, which is driven by



and increased access to our cash. In





shareholders, net of share issuance,

through a mix of 51 percent dividends

and 49 percent share buybacks. We paid





Following a 9 percent increase in our

cash dividend, FY2015 marked our 37th

consecutive year of dividend increases.



500 Dividend Aristocrats Index and our

dividend per share has grown at an 18

percent compounded annual growth

rate over the past 37 years. In addition,

Medtronic recently declared a 25

percent increase in its cash dividend for

FY2016, raising the quarterly amount to





Our acquisition of Covidien helps us

maintain our current commitment to

shareholder returns. Historically, given

U.S. tax policy, only about 35 percent



to return to shareholders and make

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FINANCIAL STRENGTH 31

FISCAL YEAR RECONCILIATION OF REPORTED GROWTH TO COMPARABLE CONSTANT CURRENCY GROWTH





FISCAL YEAR ENDED APRIL 24, 2015

A Medtronic As Reported Twelve Months Ended April 24, 2015 

B Covidien As Reported Nine Months Ended December 26, 2014 8,108

C=A-B FY15 Pro Forma Historical Revenue 28,369

D Non-GAAP Adjustment

(127)

E=C-D FY15 Comparable Historical Revenue 28,242

F Medtronic As Reported Twelve Months Ended April 25, 2014 17,005

G Covidien As Reported Twelve Months Ended March 28, 2014 10,375

H=F-G FY14 Pro Forma Historical Revenue 27,380

I Non-GAAP Adjustment

J=H-I FY14 Comparable Historical Revenue 27,412

K=(A-F)/F FY15 Reported Growth 19%

L Currency Impact on Growth (794)

M=(E-J-L)/J Comparable Constant Currency Growth



year period.

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.

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 OPERATING CASH FLOW TO FREE CASH FLOW



FY2011 FY2012 FY2013 FY2014 FY2015

Net cash provided by operating activities     

Additions to property, plant, and equipment (501) (484) (457) (396) (571)

     









measures should be

considered supplemental

to, and not a substitute for,



prepared in accordance with

U.S. GAAP. Medtronic uses



to facilitate management’s

review of the operational

performance of the company

and as a basis for strategic

planning. Medtronic believes

that the resulting non-



provide useful information

to investors regarding

the underlying business

trends and performance

of the company’s ongoing

operations and are useful

for period over period

comparisons of such

operations. The non-GAAP



an additional way of viewing

aspects of the Company’s

operations. Reconciliations



measures and the most

comparable U.S. GAAP

measures follow.



FINANCIAL

MEASURES

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FINANCIAL STRENGTH 32



NET EARNINGS AND DILUTED EPS

FISCAL YEAR ENDED APRIL 24, 2015

NET EARNINGS



DILUTED EPS

GAAP  

Impact of inventory step-up

 0.41

Impact of product technology upgrade commitment

 0.06

Special gains, net

 (0.02)

Restructuring charges, net

 0.16

Certain litigation charges, net

 0.02

Acquisition-related items

 0.39

Amortization of intangible assets

 0.49

Impact of acquisition on interest expense

 0.04

Certain tax adjustments

 0.31

As adjusted  4.28



Represents amortization of step-up in preliminary fair value of inventory acquired in connection with the Covidien acquisition.

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.











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





positions within the Company.







To exclude amortization of intangible assets.





and general corporate purposes, which may include repayment of indebtedness. The Covidien acquisition closed on January 26, 2015.



MEDTRONIC PLC FISCAL YEAR RECONCILIATION OF WORLDWIDE GEOGRAPHIC REPORTED GROWTH TO

WORLDWIDE GEOGRAPHIC COMPARABLE CONSTANT CURRENCY GROWTH





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

 FY15 Pro Forma Historical Revenue 3,673

D Non-GAAP Adjustment

(26)

 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

 FY14 Pro Forma Historical Revenue 3,438

I Non-GAAP Adjustment

 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 Growth





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.

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.





FY15

Provision for income taxes 

 23.3%

Non-GAAP adjustments -5.1%

Non-GAAP nominal tax rate

18.2%







measure may not be the same or similar to measures presented by other companies.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FINANCIAL STRENGTH 33

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | COMMUNITY INVESTMENTS 34

COMMUNITY

INVESTMENTS

Noncommunicable diseases

account for 63 percent

of deaths globally each

year. Conditions such as

cardiovascular disease,

cancer, chronic respiratory



many people between the

ages of 30 and 70 — those in

the prime of life. But there are

solutions.

We support the World Health

Organization’s (WHO) goal

to reduce premature death

from noncommunicable





devote a large portion of our

community investments to

this critical area and focus



lack of access to care are

greatest. We also encourage

our employees to donate

their time and resources to

these causes. Additionally,

every year we support



natural disasters, by funding

major relief organizations and

donating health equipment

and supplies.

FURTHER, TOGETHER

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



people born in high-income suburbs of Minneapolis or St. Paul can

expect to live an average of 83 years or longer. Those born in poor







correct this unacceptable disparity. Research shows that frontline

health workers are a vital resource to making meaningful impacts on

local outcomes. As such, our partnership focuses on increasing the

number of healthcare workers and building capacity in low-income

communities. The goal is for people to learn to better manage their

health and take advantage of available health resources.



conduct a needs assessment to identify medically underserved

communities. Moving forward, we will engage community leaders



to healthcare.

“If one lives in a neighborhood with limited resources, healthcare

access remains separate and unequal. By partnering with Medtronic

Foundation, we’re striving to correct the course and aim for

healthcare parity and healthy communities.”



Greater Twin Cities United Way

LONG-TERM

MANAGEMENT

OF DIS E A S E

CONTINUUM OF CARE

GENERAL

POPULATION

TREATMENT

OF DISEASE

A R RIVA L

AT FIRST POINT

OF CARE

INDIVIDUALS

AT RISK

INDIVIDUAL

DECIDES TO

SEEK CARE

PRELIMINARY

DIAGNO S I S

ARRIVAL AT

HEALTH CENTER

DEFINITIVE

DIAGNOSIS

OF DISEASE

OUR APPROACH TO GIVING

Medtronic Philanthropy supports

organizations and initiatives that

expand access to healthcare and build

healthy communities through the

Medtronic Foundation and corporate

giving. We focus on underserved

communities around the world



neglected diseases. We strengthen the

capabilities of healthcare providers,

advocate for policy change, broaden

and increase the availability of

products and therapies, and support

systemic change. Additionally, we

focus on improving the communities

where our employees work, live, give

and volunteer — demonstrating our

dedication to making the world a

healthier place for everyone.

Yearly, we commit to donating 1.5



to charitable causes. In FY2015, we



in community investments. This

represented approximately 1.9 percent



total giving comprises Medtronic

Foundation grant-making and

corporate cash and product

donations. In FY2015 our business

units made product donations



Corporate Giving Guidelines

Our business units make cash

contributions to charitable

organizations in support of

medical conferences, events,

research, and education

programs aligned with our

Mission. Every quarter, we

disclose all donations made to

U.S. customers, or organizations



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 | COMMUNITY INVESTMENTS 35

Expanding Access across

the Continuum of Care

For people in underserved

communities, life-changing care

is often out of reach. The barriers



are ubiquitous and daunting.

The Medtronic Philanthropy

continuum of care framework

guides our strategic approach

to community investments.

The continuum of care represents

the patient’s journey from knowledge

and awareness, through diagnosis, to

long-term management and control

of a disease. This approach allows us

to systematically assess, identify, and

remove barriers to care at each stage of

the patient experience.

MEDTRONIC PHILANTHROPIC CONTRIBUTIONS

($ millions)

Medtronic Foundation

Giving

Corporate Cash

Contributions

Product Donations

FY2011 FY2012 FY2013 FY2014 FY2015

% of Global Pretax Proﬁts 1.4% 1.5% 1.5% 1.5% 1.9%

$59.9

$63.0

$64.4

$67.0

$89.7

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | COMMUNITY INVESTMENTS 36

education, capacity building, and

advocacy to support patients

from diagnosis through post-

treatment monitoring.

The Medtronic Foundation leads

the HeartRescue Project. This



at the bystander, prehospital,

and hospital level to improve

sudden cardiac arrest (SCA)

survival rates, which have not

improved much over 30 years.

Working with six U.S. states and

American Medical Response,

HeartRescue works toward

integrating community response



professional education about

acute cardiac events such as SCA,

and introducing and applying best

practice treatments. It also helps

hospitals implement a method

for measuring SCA performance

and outcomes. Our partners in



government, and emergency

medical service providers.

Early results are promising. For

example, the City of Chicago has

seen an increase in SCA survival

rates from 2 percent to 12

percent in just two years. In 2016,

HeartRescue Project leadership

will transfer to the University

of Washington, a founding

partner, and expand nationally

as the HeartRescue Consortium.

Medtronic Philanthropy will

continue funding these advances.

Based on successful results, the



United States, China, and India.

the Diabetes and Chronic Disease

Support Project. The Project will

address the chronic disease needs

of Aboriginal people living in the

Alice Springs Town Camps of central

Australia.

 

grant was given to the Pan American

Development Foundation to support

the Health Innovation Initiative in

partnership with Via Rio and the

Juvenile Diabetes Association.

The program will scale up health

services for at-risk communities

through education, youth diabetes

programming, and a women’s heart-

health initiative.

Our site in Shanghai, China,



Shanghai Oriental Institute of Brain

Science, an academic research

institute, to support prevention



and hydrocephalus. Through

education and awareness, including



lectures, as well as free medication

and pro bono operations and

rehabilitation services, our grant is

bringing critical care to patients in

and around Shanghai.

Global Health Access Grants

The Global Health Access grant

program provides funding and

resources to address acute, chronic,

and neglected diseases around the

world. Many of these grants are

long-term partnerships addressing

systemic obstacles in local healthcare

systems. Our partners provide

FY2015 Highlights

Our Puerto Rican business gave



working to treat chronic conditions.

The grants went to the Puerto

Rico Kidney Foundation, the

Ronald McDonald Children’s

Foundation, the Community

Education through Commitment

and Service Program, the Ponce

YMCA, and Turabo University’s

Neurocognitive Comprehensive

Center for Treatment, Research, and

Community Services.

In San Antonio, Texas, we gave



organizations that promote healthy

lifestyles and access to care

for people with diabetes. Grant

recipients included: JDRF (formerly

Juvenile Diabetes Research

Foundation) of South Texas, the

YMCA of Greater San Antonio, the

American Diabetes Association of

San Antonio, San Antonio Sports,

and the San Antonio Social and

Health Research Center.

Our manufacturing facility in Pointe

Claire, Montreal, Canada, donated



volunteer-driven health organization

provides nursing, transportation,

and bereavement services and

support for adults and children



Near our North Ryde facility in

New South Wales, Australia, our



renowned Baker IDI Heart and

Diabetes Institute is establishing

BRINGING

HEALTHCARE TO

MORE PEOPLE



the transformative health impact

of our business by supporting

programs that expand access

to care for people living in the

most medically underserved

communities worldwide. Our



vulnerable communities and

markets that require multisector

partnerships to design and



Our Community Health Access

and Global Health Access

grant programs deliver on this

objective.

Community Health Access

Grants

Our Community Health

Access grants focus on care

for underserved populations

in the 36 communities where



presence. We believe strongly

in our responsibility to support

the health and well-being of our

neighbors — in both developed

and developing countries. Visit

Medtronic Philanthropy for a map

and overview of recent grant

recipients.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | COMMUNITY INVESTMENTS 37

These deaths are preventable, as

RHD most commonly results from

untreated strep throat infections.

Our commitment has led to the birth

of RHD Action, a global movement to

reduce the burden of RHD in vulnerable

populations of all ages throughout the



is the RHD Action Alliance, a coalition

of three global organizations — the

Medtronic Foundation, the World

Heart Federation, and RhEACH—

working together toward a shared goal

of ending RHD. Critically reinforcing

this movement are the RHD Action

Countries, a cohort of countries where

government and partner institutions

are actively engaged in achieving

engagement and policy initiatives. On-

the-ground work in India has begun,

where community assessments in



lack of awareness, under-diagnosis, and

poor management of hypertension and

diabetes. Additionally, HealthRise has



well as to three counties in Minnesota.

In FY2016, HealthRise will begin to

transition from needs assessments to

program implementation.

In September 2014, the Medtronic





reduce premature deaths caused

by Rheumatic Heart Disease (RHD).



million grant program that aims

to address noncommunicable

diseases in Brazil, India, South

Africa, and the United States.

The Medtronic Foundation

launched the program in

FY2013 in partnership with Abt

Associates and the Institute for

Health Metrics and Evaluation.

The program uses community

and health system needs

assessments to uncover potential

barriers across the continuum of

care and awards grants to local

organizations that recruit and

train health workers, educate

patients, and support stakeholder

FURTHER, TOGETHER



Bakken Invitation honoree Clint Doyle was just two years old when he experienced



his childhood, due to a condition known as CPVT (cardio-catecholaminergic





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.”

Additional videos and photos

available at Live On, Give On.

View Clint’s Story

Clint Doyle

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | COMMUNITY INVESTMENTS 38

Global Heroes

The Medtronic Global Heroes

program

highlights how a medical diagnosis

“doesn’t end the run.” The initiative

brings together runners from all over



medical technologies. Global Heroes is



in Motion, organizers of the Medtronic

Twin Cities Marathon. Each year, Twin

Cities in Motion selects 25 dedicated

runners who have overcome health

obstacles to participate in running

events in Minneapolis and St. Paul,

Minnesota. In October 2014, we hosted

our ninth annual team. The team

included 12 marathon runners and 13

10-mile race participants, together

representing 10 countries. Since 2006,

more than 220 people have participated

and shared their personal health

journeys.

Bakken Invitation

Every year we look to the millions



medical technology — both our own

and other companies’. Then, in the

spirit of our co-founder Earl Bakken

we ask, “What are you doing with your

extra life?” We invite and share patient

stories online at www.LiveOnGiveOn.

org and honor 10 exceptional

individuals annually through the Bakken

Invitation.

Honorees are people who exemplify

the belief that everyone can make



their healthy lives to supporting

communities. The Medtronic





organization of his or her choice.

FY2015 winners came from seven

countries and their inspiring stories are

available online.



also strengthening their health

systems. The inaugural countries

supported by Medtronic

Philanthropy include Uganda,

Tanzania, and India. RHD action

will advocate for people living



policy related to disease

management and treatment.

CELEBRATING

PATIENTS

Our Mission guides us to develop

solutions that don’t just alleviate

pain and restore health, but also

extend life. Many patients who



and therapies go on to live

extraordinary lives. We celebrate

the ways that they serve,

inspire, and impact their own

communities with two patient-

recognition programs: the Bakken

Invitation and Medtronic Global

Heroes.

FURTHER, TOGETHER

GOING THE EXTRA 10 MILES



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.

View Medtronic Global Hero

Nicola Derryberry Maurer’s

story, and see how she



Twin Cities Marathon.

Fei Jiao

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | COMMUNITY INVESTMENTS 39

Employees contribute to our disaster



contributions and our Disaster Relief

Paid-Leave Volunteer Program.

This program provides employees





In March 2015, a group of six Medtronic



our Medtronic Women’s Network and

the Christian Employees Resource

Group traveled to Haiti with Reiser



organization. The group brought clean

water and humanitarian aid to one

of the poorest communities in the

Western Hemisphere.

More information about the Medtronic

Foundation and our grants is available

at www.medtronic.com/foundation.

For information about employee giving

and volunteerism, see Employee

Engagement.



in response to the Ebola crisis in West

Africa. We allocated these funds based

on a detailed assessment of the short-

and long-term response needs, with

a focus on neglected aspects of the



 

to Last Mile Health, DirectRelief,

UNICEF, and Save the Children.

These supported critical health

services that were impacted during

the epidemic, namely emergency

obstetric care, maternal and child

health services, malnutrition

support, access to essential

medicines like insulin and antibiotics.

The grants also support the

establishment of community care

centers for children orphaned in the

disaster.

 

International to support preparation



considered at greatest risk for the

spread of Ebola.

Smaller grants to support

innovations with global impact. For

example, we sponsored a hackathon



Medical Technologies (CAMTech)

and Massachusetts General Hospital

to develop innovations to aid the



DISASTER RELIEF

Natural disasters around the

world create an immediate need

for health equipment and supplies

as well as a long-term need to

rebuild healthcare infrastructure.

We provide product donations

and grant funding in the wake of

crises each year.

To support emergency

preparedness and response, the

Medtronic Foundation makes

annual gifts to the American Red

Cross Annual Disaster Giving

Program and the International

Federation of Red Cross and Red

Crescent Societies. In FY2015,



Cross and Red Crescent societies,



American Red Cross to fund



Vanuatu.



healthcare infrastructure, we

partner with local organizations

and government agencies. For

example, in May 2014, we joined

members of the European

Foundation Committee to







WORKING

RESPONSIBLY

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GOVERNANCE AND ENGAGEMENT 41

GOVERNANCE

AND

ENGAGEMENT

We cannot transform

healthcare alone. It will take

all players in the healthcare



For us to play a leading role in

this transformation, we must

continue to build trust among

our employees, industry

partners, patients, healthcare

providers, investors,

regulators, and governments.

This means operating openly

and transparently. It means

acting ethically. It also means

being honest in marketing

our medical products and

ensuring the privacy of

patients who use them. And it

means making certain every

single employee knows about,

understands, and complies

with our policies at all times.

Our credibility and business

success are inseparable from

our conduct throughout our

value chain, from product

design to interactions with

doctors and suppliers.

FURTHER, TOGETHER

IN CONVERSATION WITH

TOM SCHUMACHER, CHIEF ETHICS

OFFICER, MEDTRONIC

Q: Why are good governance and ethical behavior so critical to

Medtronic’s future?

A: Trust is the foundation for business and the company’s ambition to

lead in transforming healthcare systems and access globally. We have

customers who will only come to Medtronic because they trust that

we will be honest about product problems and that our employees,

including sales reps, will act appropriately.

Q: Corruption and compliance has been a major challenge for the

healthcare industry. How do you address this?

A: We provide robust training globally to make sure everyone

understands our rules, including comprehensive Code of Conduct

and anti-corruption training. We establish solid internal controls and

monitor them to help prevent problems. We look to ethical behavior



We provide many options for employees to raise concerns, including







compliance-related lapses.

Q: Who are the key players in ensuring that your goal of having the

highest ethical standards is met?

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

one-on-one, and senior management to address these issues. We also

ask employees for their perspectives on ethical issues in our annual

engagement survey, and embed ethical conduct in our performance

reviews. Managers assess the ethical behavior of their team members,

and employees conduct self-assessments as well. This is a process we



Medtronic workplace.

Tom Schumacher

COMMITTED TO AN

ETHICAL WORKPLACE

Medtronic is committed to

fostering an ethical culture in

our workplace, tackling ethical

challenges head-on. Our board



to embed a culture of integrity,

working with employees,

patients and healthcare

providers, investors, regulators,

governments, and the public.

We continue to strengthen and

improve our culture of ethics

and integrity, and our progress

is demonstrated through the

results we’ve achieved. We look

to industry and other benchmarks

to see how our program stacks

up, and we consistently score in

the top quartile in every measure

that we examine. Some of these

indicators include employees’

willingness to raise issues without

fear of retaliation, how quickly

and consistently we respond



of unethical behavior, and how



they understand our Code of

Conduct and its requirements.



resources in our systems, data

analytics, and human resources

so that we get ethics and

compliance right within our

organization.

We continue to feel that

meeting these challenges is

the responsibility of every

Medtronic employee. In FY2015,

we continued to strengthen our culture

of transparency and integrity in our

day-to-day behavior. Steps included

advancing our programs on compliance

and ethical conduct, assessing

employees’ ethical behavior during

annual performance reviews, and

making compliance a focus of employee

engagement.

How We Manage Ethics

Ethical leadership goes beyond having

good policies in place. It is a state of



requires continued engagement

throughout our global company.



and Compliance (OEC), led by our



shares this responsibility and takes

an active lead on its promotion. The

OEC oversees and implements our

ethics policies and programs, helping

the company ensure that we meet

all legal, compliance, and ethical

obligations. OEC activities include:

facilitating ethics training, maintaining

an employee whistleblower hotline,

leading investigations against alleged

employee misconduct, running

analytics and monitoring programs,

supporting compliance leaders across

our global operations, and developing

awareness programs and campaigns

that endorse and grow our ethical

culture.



has direct, independent access to the

board and CEO, reporting periodically

to the Audit Committee and at least

annually to the board. In recent years,

we have also strengthened our global

ethics risk assessment processes. For

more information, see Sustainability

Risk and Opportunity.

Our Code of Conduct

Medtronic’s global Code of Conduct —

“The Compass: Our Code of Conduct

for Living out the Mission” — guides

employees in their daily operations

and interactions with all stakeholders.

It is the foundation of our ethics

and compliance program providing

comprehensive standards for ethical

behavior in our relationships with:

Fellow employees

Patients and customers

The company and shareholders

Governments, and

Communities and the public.

All employees and board members

read and certify their understanding of

the Code. In FY2015, we continued our



provisions, including multilingual

training courses.

Preventing Corruption





especially in product sales-related

interactions with health services

personnel.

For this reason, we supplement our

Code of Conduct with Global Anti-



of Interest policies. These policies

guide relevant employees on how to

act in full compliance with the laws

and regulations of every country and

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GOVERNANCE AND ENGAGEMENT 42

region where Medtronic or our

partners operate. We stand

behind this with the equivalent

of 223 full-time employees who

spend time helping to ensure that

our practices remain compliant

globally. In addition, we require

all sales and marketing, and other

customer-facing employees —

including all those involved in

dealings with business partners,

international customers, and



mandatory biennial anti-

corruption training.

We also have high expectations

for our global distributors and

dealers and perform due diligence

before entering into contracts

requiring them to meet the

following criteria:

Internal compliance and

corruption policy training

programs.

An internal corruption policy

equivalent to our own.

Contractual rights for

Medtronic to conduct audits

and monitoring of distributors

and dealers.

 

compliance with third-party

anti-corruption policies and

compliance terms.

We continue to expand our

anti-corruption activities by

periodically updating our internal

policies and training activities.

In FY2015, Medtronic did not

enter into any settlements

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GOVERNANCE AND ENGAGEMENT 43

partnerships drive meaningful

innovation that ultimately

improves patient outcomes. We

are proud of our relationships

with physicians and work

tirelessly to ensure the integrity

of these collaborations,



of interest. In doing so, we follow

internal guiding principles that



Medtronic has long supported

initiatives that publicize

payments made to physicians. In

2010, we became an early adopter

of voluntary reporting of certain

payments to U.S. physicians. In

2013, transparency reporting

became mandatory for all U.S.

life science manufacturers.

Payments are now disclosed

on the CMS Open Payments

(Sunshine Act) website, and



investments to ensure that we

have the appropriate systems in

place to meet CMS requirements.

We also follow industry codes

including the AdvaMed Code

of Ethics on Interactions with

Health Care Professionals and

the Eucomed Guidelines on

Interactions with Healthcare

Professionals. For more

information on our approach

to physician collaboration and

transparency, please visit our

website.

Rewarding Excellent Conduct

When our employees act with

exceptional integrity they become role

models for their colleagues, teams, and

partners. Recognizing this, in FY2014

we established the Medtronic Compass

Award. The Medtronic Compass Award

in one of the highest awards that can

be received by a Medtronic Employee.

This prestigious award celebrates

employees who fully embrace our

Code of Conduct and operate ethically

even in the most challenging of

circumstances. Since 2014, we have had

the honor and pleasure of awarding 10

employees around the globe with the

Medtronic Compass Award.

OUR APPROACH TO

CRITICAL ETHICAL ISSUES

Our Mission encourages us to “be

recognized as a company of dedication,

honesty, integrity, and service.”

Building trust with doctors, patients,

and other business partners requires

us to be open and honest about our

products. Guided by our Code of

Conduct, Global Business Conduct

Standards Policy, and other related

polices, Medtronic is committed to the

responsible marketing, communication,

and promotion of all our therapies and

services.

Working Ethically with

Healthcare Professionals

We collaborate with physicians and

other healthcare professionals

and consultants through product

development, training, consultation,

and clinical research. These



States government, or other global

governments, relating to non-

compliance with anti-corruption laws.

Policy on Raising Questions or

Concerns

Medtronic empowers employees to

openly discuss questions or concerns

about potentially unethical or illegal

behavior which violates our Code of



employees to report concerns.



processes, tracks, and oversees all

reported concerns it receives, from

investigation through resolution. This

includes matters that are reported by

employees and others through the

hotline, the Director’s inbox, as well

as serious matters that are escalated

through other reporting channels.



Compliance tracked 525 concerns.

All concern reports are carefully

investigated and if an allegation is

proven true, we take appropriate

disciplinary action.



in reporting concerns by including

compliance-related questions in

our annual employee engagement

survey. We also have plans to conduct

a global compliance culture survey to

assess employee attitude toward, and

knowledge of, managing compliance–

related issues. The results of this

Corporate Executive Board-validated

survey will allow us to tailor our

compliance training programs moving

forward.

ETHICS TRAINING

FY2015: BY THE

NUMBERS

n Approximately 99 percent

of all new employees in the

U.S. completed training



Code of Conduct.

n 100 percent of all U.S.

people managers



understood our Code of

Conduct.

EMPLOYEES MAY

VOICE OR RAISE

QUESTIONS TO:

n Their manager.

n Their human resources,

legal, or compliance

representatives.

n 

Ethics and Compliance.

n The Voice Your Concern

Line — a website and

related toll-free hotline

operated by a third party

provider. Reporting may be

anonymous.

n The Director’s email inbox.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GOVERNANCE AND ENGAGEMENT 44

FURTHER, TOGETHER

THE MEDTRONIC COMPASS AWARD

The Medtronic Compass Award recognizes individual employees

who live out our Mission by vigilantly demonstrating behavior that



This award recognizes individuals who consistently act ethically during



or customary practices in order to elevate ethical performance; or take

proactive steps to drive ethical behavior among their peers, teams,

and/or third parties. Recipients of the Medtronic Compass Award have

shown an unwavering commitment to do the right thing.

At a minimum, employees must demonstrate excellence in all of the

following:

Models the highest standards of honesty, ethics, and integrity.

Consistently promotes and adheres to the letter and spirit of

Medtronic Code of Conduct, all applicable laws, and company policies.

Promotes and ensures an environment where ethical behavior is

expected and unethical behavior is not tolerated.

Promptly takes appropriate action when problems occur.

Promotes and encourages an environment that inspires others to act

ethically in their day-to-day business interactions and activities.

 

circumstances (e.g. location, language, culture).

Courageously challenges norms or customary practices in order to

promote outstanding ethical performance.

 

directly and empathically with our stakeholders.

Marketing Responsibly to

our Customers

Our patients’ well-being depends

on our medical services and

therapies. As such, we are diligent

in promoting our products and

therapies clearly and factually,

and in ways that support their

approved use. Medtronic is

committed to acting in full

compliance with all relevant

government regulations and

industry guidelines. Each of

our business units maintains

internal review processes to

ensure accurate and appropriate

promotion. For those products

we market directly to patients

and individuals in the U.S., we are

led by our Code of Conduct and

AdvaMed’s voluntary direct-to-

consumer guidelines.

Medtronic also adheres to

internal corporate and business-

level policies, which include

those that prohibit the unlawful



label uses. Our policies address

several related topics, including

appropriate parameters for



Medtronic-sponsored education,

and business-level training.

Other ways to avoid promoting



education of employees who

might interact with healthcare

professionals, monitoring

conformance to our policies,

structured risk assessment and



use, and corporate-led oversight

to supplement oversight at the

business level.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GOVERNANCE AND ENGAGEMENT 45

consortium of medical device

manufacturers and healthcare

providers driving new industry

standards and expectations.

We also embraced the Food

and Drug Administration’s

(FDA) cybersecurity guidance

which was released in October

2014. Before the guidance was

released, Medtronic employees

shared security best practices

and participated in FDA-led

workshops. We are also active

members of the Medical Device

Privacy Consortium (MDPC),

which engages policymakers to

balance the need for privacy and

security regulations with our



medical technologies.

HOW WE GOVERN OUR

COMPANY

Operational integrity is the

foundation on which we

seek to build our business

and partnerships. Our board

of directors and executive

leadership have established

rigorous corporate policies

and practices that support

ethical governance, enhance

transparency, and encourage

responsible behavior from the

top down. These policies and

practices are frequently reviewed

and updated whenever necessary.

Each and every Medtronic employee is

a critical line of defense in protecting

the company’s sensitive information.



all employees, and require global

data privacy and security training for

employees who handle or have access

to sensitive patient or employee data.

Medtronic also provides companywide

communications on cybersecurity.

Ensuring Product Security

Product security is a priority for

Medtronic. We work to make our

devices safe and secure, while also

ensuring easy use for the patients

and physicians who depend on them.

In FY2015, we continued to advance

product security in the company.

Medtronic formally approved a

companywide Global Product Security

Policy, which provides guidance on

integrating security into product

development. This policy adds to

an already strong product security

program reinforced with internal and

external security and product experts,

rigorous processes, new product

security testing, and the most up-to-

date technologies.

In addition to our internal progress,

Medtronic is active in outside

organizations working on product

security issues. We work with

NH-ISAC, the nation’s Healthcare

and Public Health Information Sharing

and Analysis Center, and the Medical

Device Innovation, Safety and Security

Consortium (MDISS), the leading

Medtronic is committed to

following appropriate marketing

communications practices at all times,

and has a comprehensive and robust

compliance program in place. Globally

in FY2015, the company agreed to

settle two cases involving or touching

upon the sales and marketing of certain

products, one involving promotion

reimbursement activities and the other

relating to country of origin of products

sold to the government. Both were U.S.

government settlements and included

no admission of liability or wrongdoing.

PROTECTING PATIENT

PRIVACY AND SECURITY

Cybersecurity is an everyday

challenge for companies large and

small. Medtronic is no exception. Our

patients and customers look to us to be

industry leaders in data protection and

patient safety. We place a premium on

ensuring that our data and products are

secure at all times, and are continually

strengthening our procedures to

meet and exceed global standards.

Our strong internal processes and

technologies, expert employees, and

collaboration with outside experts

help us to establish industry-leading

security measures and safeguards.

Medtronic’s privacy and security

policies and practices are overseen

by our Global Privacy and Security



can access sensitive information and

closely monitor activities to identify

and prevent inappropriate access to

proprietary materials and data.

COLLABORATING

ON PRODUCT

SECURITY

On November 5, 2014,

Medtronic’s Global Privacy



convened a Product

Security Symposium. The

event brought together

internationally recognized

security experts and

researchers with 300

Medtronic scientists,

engineers, executives,

and IT, quality, legal

and communications

professionals. We

collaborated, participating

in panel discussions and



to improve medical device

security. Security threats,

such as data leaks and device

breaches that can pose harm

to patients, were also of top

concern.

“If we serve millions of

patients each year, that

means we need to get security

right millions of times.”

Mike Hedges, Chief Information



MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GOVERNANCE AND ENGAGEMENT 46

one that rewards volume-based

fee-for-service to one that

favors value-based healthcare.

Medtronic partners with

healthcare providers, payers, and

patients to develop outcome-

based payment systems. We

demonstrate improved clinical

outcomes and economic

value through optimized care-

coordination and long-term

management of patients to help

avoid readmission and related

costs. We engage legislators and



to support these healthcare

improvements.

In January, the Department of

Health and Human Services

announced a goal to have a

greater percentage of Medicare

payments in alternative payment

models: 30 percent by the end

of 2016, and 50 percent by the

end of 2018. In the U.S., just as

in healthcare systems around

the world, governments and

payers are focused on improving

outcomes, expanding access,

and optimizing costs and



how our products and services

contribute to the best outcomes,



not only position Medtronic for

growth, but also contribute to

the sustainability of healthcare

systems around the world.

Incentives are heavily tracked to long-

term performance, and are aligned

with quality compliance performance.

Rewarding executives through both

annual and long-term compensation

structures aligns with our company’s

short and long-term goals.

The Board Compensation Committee

evaluates and approves executive

compensation. For more information

on our executive compensation

philosophy, please view our most

recent Proxy Statement.

ADVANCING PUBLIC

POLICY

We actively engage governments in

support of public policies that advance

our Mission and business imperatives.

Advocacy activities include those

that enable therapy innovations,

promote economic value, and support

globalization.

U.S. Public Policy

In the United States, we seek to

advance outcome and value-based

healthcare, and promote international

trade and corporate tax reform. We

also support legislation that addresses

patients’ needs by improving access to

and continuity of care. Highlights from

FY2015 include:

Supporting Value-Based

Healthcare

We believe it is critically important,



U.S. healthcare payment model from

Managing Corporate Citizenship

and Sustainability

In our day-to-day operations,

important sustainability topics

including community engagement,

economic and environmental

performance, human rights and labor

practices, product responsibility,

and supply chain are managed by

individual functional groups, rather

than through a centralized citizenship

team. These functional groups include:

Business Strategy and Development;

Environmental, Health, and Safety;

Ethics and Compliance; Finance; Global

Quality; Human Resources; Legal;

Regulatory; Philanthropy; Sourcing;

and Supply Chain. A sustainability

strategy team works with the

above functional groups to advance

corporate citizenship and sustainability

performance. These groups monitor

trends and external expectations in

order to identify gaps and potential

opportunities, identify appropriate

performance metrics, and initiate

discussions about goals and targets.

Twice a year, performance and related

activities are reported to Medtronic’s



How We Compensate Executives

Our ambitions for our business, and

for improving healthcare systems

and access globally, demand strong

leadership. We seek to attract

executives of diverse backgrounds

and experiences who can collaborate



challenge the status quo. To do so, we



as well as cash and equity incentives.

Our Board of Directors

Twelve independent directors

and CEO Omar Ishrak, who also

serves as chairman of the board,

comprise Medtronic’s board

of directors. In his joint role,

our CEO helps align strategic



vision across the company. While

our CEO serves as chairman,

board members appoint an

Independent Lead Director

who chairs meetings of the

independent directors and

oversees the annual evaluation

of the board’s performance.

Five standing committees of

independent directors oversee

all aspects of our business,

including risk management.

Independent directors of the

board can be contacted by email

at independentdirectors@

medtronic.com.

We believe that a diverse board

best represents the needs of

our patients, partners, and

workforce. Currently, more than

30 percent of our board members

are women and more than 30

percent represent minority

groups.

For more information on our

board of directors, board

committees, and global policies

and practices, please visit our

Corporate Governance website.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GOVERNANCE AND ENGAGEMENT 47

ENGAGING

STAKEHOLDERS

To maximize our business and

citizenship impact, we engage

and collaborate with a broad

base of stakeholders throughout

the healthcare system. We

collaborate with our stakeholders

on a day-to-day basis in an



solutions that improve patient



treatments and therapies widely

available. Stakeholders include:

patients, physicians, hospital

administrators, advocacy groups,



nongovernmental organizations,

employees, suppliers, investors,

shareholders, regulators, and the

communities where we operate.

Examples of how we engage

stakeholders include:

In FY2015, we helped launch

the Harvard Business

Review (HBR) Insight Center,

a forum to examine and

discuss the shift toward

value-based healthcare. The

joint collaboration between

Medtronic, HBR, and the New

England Journal of Medicine

features cutting-edge articles

and studies from policy,

medical, clinical, and academic

experts. By working with these

stakeholder groups we are



reduce the cost of healthcare



LOBBYING AND POLITICAL

CONTRIBUTIONS

DISCLOSURE

Medtronic’s Political Contribution

Policy ensures that we comply with all

relevant state and federal disclosure

laws. We publish our annual political

contributions, including those made

by the Medtronic political action

committee (PAC), on our website.



disclosure reports for the U.S. House of

Representatives and the U.S. Senate.

Medtronic is a member of several

medical device trade associations

across the U.S. and Europe, including

AdvaMed and Eucomed. These

organizations advocate for initiatives

that make advancements in global

health by providing access to medical

technology. Additional information on

our dues paid to industry associations

can be found on our website.

Medtronic maintains memberships

in industry associations worldwide.

In the U.S., these include: Asia

Society, Alliance for Healthcare

Competitiveness, Americas Society/

Council of the Americas, Corporate

Council on Africa, U.S. ASEAN Business

Council, U.S. Brazil Business Council,

U.S. China Business Council, U.S. India

Business Council, U.S. Japan Business

Council, U.S. Korea Business Council,

and the U.S. Russia Business Council.

improves glucose control, enhancing

care for people with diabetes.

Collaborating with stakeholders

including JDRF, the Endocrine Society

and the American Association of

Clinical Endocrinologists, we have led

an advocacy strategy that resulted

in the introduction of bipartisan

U.S. House of Representatives and

U.S. Senate legislation in FY2015.

This legislation would provide for

Medicare coverage of CGM and future



continue to work with stakeholders in

the diabetes community to push for

coverage of this important therapy.

International Public Policy

Development





technology innovation, increase access





include:

Working with several national

governments to establish a more

supportive innovation environment

that encourages appropriate

medical technology adoption,

innovation, and growth.

Advocating, together with our

industry partners, for alternative

procurement approaches to ensure

“value for money” in the healthcare

system. We also stress the

importance of using transparent and

fair regulatory and reimbursement

mechanisms that harness market

principles and innovation.

Opening New Markets

Favorable trade agreements fuel

continued economic growth,

including new job creation for

countries that participate. They



opportunities for Medtronic

therapies. Our government





support trade liberalization.

One particular area of interest is

the Trade Promotion Authority

in the U.S., which through the



stakeholder community, was

passed and signed into law

in June 2015. The legislation

allows negotiations on pending

trade agreements that we

support, including the Trans



Atlantic Trade and Investment

Partnership, to move forward.



supporting provisions to provide

for pricing rules and transparent

government reimbursement

procedures for healthcare

products that would open up

full market access to U.S.-based

products.

Improving Therapy Access

Medtronic has long supported

providing Medicare patients

with access to Continuous

Glucose Monitoring (CGM). CGM

is a lifesaving technology that

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GOVERNANCE AND ENGAGEMENT 48

By engaging our employees we

gain valuable feedback and insight

into their collective experience,

uncovering areas of opportunity and

improvement for the company. We

continue to make strides by raising

awareness and acknowledging

and rewarding employees on their

performance in ethics; quality; and

environmental, health, and safety,

among other areas. For more

information, please see Employees.

We engage with suppliers through

our supplier development program,

product quality manuals, advocacy

events, roundtable discussions,

and supplier diversity networking.

In FY2015, we worked with key

suppliers to educate them on trade

reform and its potential impact

on medical technologies and the

broader economy. By fostering

wider support, we can increase our

chances of moving trade reform

legislation forward.

Each year we take part in

several industry events where

we engage key stakeholders

on critical issues facing our

business and the broader

healthcare industry. In

October 2014, we participated

in AdvaMed’s annual three-day

conference, which was held in

Chicago. We spoke on panels

and engaged industry leaders

on issues such as supply chain

management, value-based

care systems, technology

innovation, regulatory

considerations, and consumer

advertising. In FY2015, we

also participated in a public

workshop organized by the

FDA to identify and address

cybersecurity challenges and

risks, such as device security,

to the healthcare and public

health sector.

We engage stakeholders

through our memberships in

organizations. Last year, we

joined Practice Greenhealth, a



committed to advancing

sustainability throughout the

healthcare ecosystem. We are

also members of Healthcare

Plastics Recycling Council

(HPRC) where we work with



sustainable recycling solutions

for healthcare products.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | EMPLOYEES 49

EMPLOYEES

Working together is our

model for success. And no

partner is more important to

Medtronic’s success than our

employees.



our Mission — to recognize

the personal worth of our

employees — we invest

strategically in policies and

programs to attract, retain,

and develop exceptional,

diverse, and collaboratively

minded individuals.

We expect a lot from our



that they share our dedication

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.

FURTHER, TOGETHER

ON MEDTRONIC LEADERSHIP

PROGRAMS WITH KIRK MONSON,

SENIOR GROUP MARKETING MANAGER,

DIABETES

“Medtronic leadership programs, including our Leadership

Development Rotation Program and Emerging Leaders Program,



career aspirations at Medtronic. The greatest impact for me came

on day one, when I instantly joined a network of highly talented,

passionate, driven future leaders. I still regularly connect with my

cohort to discuss ideas, share successes and failures, and support

each other on our career journeys.

I have also grown from the access to senior leadership that these

programs provide. Formal and informal discussions have helped

shape my thoughts on leadership and have given me unique

insights and guidance into my career aspirations. Finally, the

workshops, business simulations, and other program exercises

gave me valuable opportunities for introspective leadership



during a full-time MBA program. I have grown immensely from

being able to immediately put into practice what I have learned.”

Kirk Monson

CAREER DEVELOPMENT FOR ALL

8 HRS

OF ORIENTATION

TRAINING

$2.6 M

IN TUITION

AID

175

LEARNING ASSETS

OFFERED THROUGH

online portal

144

eLEARNING COURSES IN

LANGUAGES

DIFFERENTIATED

LEADERSHIP

PROGRAMS

OUR GLOBAL

WORKFORCE

To increase global access to

our lifesaving therapies and

technologies, we support a

large, dedicated workforce

across several strategic regions.

Looking ahead, we will continue

to grow our workforce in ways

that support our strategic

business areas, including: new

therapies, emerging markets, and

integrated health solutions. With the

recent acquisition of Covidien, we have



At the end of FY2015, Medtronic

employed 46,368 people across our

global locations (not including Covidien

employees). For more information on

our workplace statistics, please see our

Data Summary.

Our Approach to Union

Representation

Medtronic complies with global laws

regarding freedom of association and

collective bargaining agreements,

including participation in work councils.

Approximately 6 percent of our global

permanent workforce is represented by

work councils and more than 3 percent

is covered under collective bargaining

agreements with trade unions. Our

U.S. workforce is not currently

unionized.

DEVELOPING

EMPLOYEE POTENTIAL



increasingly tied to a committed,

talented, and dedicated

workforce, investing in our

employees is an investment in

our future.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | EMPLOYEES 50

4,950

Asia-Paciﬁc

3,786

Latin America

27,086

U.S. & Puerto Rico

792

Canada

MEDTRONIC GLOBAL FY2015 WORKFORCE

Total*

46,368**

*Does not include temporary or contingent workers.

**Does not include Covidien workforce ﬁgures.

9,754

Europe/Central Asia/

Middle East/Africa

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | EMPLOYEES 51

internal online learning portal provided

learning experiences to employees

worldwide. Project Management,

Emotional Intelligence, and Assertive

Communication were among the top

training courses taken.

In FY2014, we embarked on a

substantial redesign of our high-

potential online program. With pilots

completed in FY2015, we continue



Our focus on targeted, individualized

development continues to prepare

high-potential employees to be our

future business leaders. Preparation

includes:

Emerging Leader Program for high-

potential individual contributors.

Being a Medtronic Manager Program

for newly promoted and/or newly

hired managers.

Leading with Impact Program for

senior managers and directors.

Medtronic also continues to enroll

recent business management

graduates in our MBA Leadership

Development Rotation Program,

providing participants with two 12-

to 18-month rotations in marketing



units or geographies.

Supporting Continuing

Education

We also provide resources to support

our employees’ continuing education.

Our internal online learning portal

provides over 175 learning assets and

courses aimed at developing the core

skills relevant to our business. This

includes the eLearning and classroom

aspirations. Additionally, we provide

coaching, mentoring, and training.

All global Medtronic employees

have access to skill-based training

to advance their capabilities,

competencies, and to excel in their

positions. In FY2015, we spent more



and development programs. This marks



the previous year — a trend we will

continue to build on.

Employee development begins on

day one with at least eight hours of

orientation training. This includes

our global requirements along with

additional regional, business, and

functional programs. New managers

and leaders undergo additional online

eLearning orientation, and incoming

mid-level managers are encouraged to

participate in a three-day instructor-

led training program.

In FY2015 we continued to expand our



an expansive library of 144 eLearning



Knowing this, we have established

comprehensive, cutting-edge

programs and incentives

geared toward developing and

retaining the next generation

of Medtronic leaders. We strive

to maintain a diverse global

workforce that leverages



backgrounds, experiences, and





career development for all of our

employees, as well as leadership

opportunities, we are building a

diverse pipeline of leaders for our

company.

Training and Developing our

Employees

We believe learning through



and rewarding method for career

growth. Our philosophy is to

emphasize work experiences

that develop and stretch the

capabilities of our employees to

align with our business objectives

and individual long-term career

“I’m amazed at all of the

resources available on

the learning website!

I can’t wait to take

advantage of the

information and tools. I





Medtronic Employee

EMPLOYEE TRAINING AND DEVELOPMENT

FY2011 FY2012 FY2013 FY2014 FY2015

Total Amount Spent on

Employee Training and



    

Average Amount Spent

per Employee (includes

temporary and contingent

workers)

    

Number of eLearning

Courses Available

133 137 140 64 144



resources and tools, such as the

Cultural Navigator and Employee

Development Toolkit. In FY2015,

more than 30,000 employees

worldwide took advantage of

these resources.



enabling employees to enroll in

continuing education programs

outside the company. In FY2015,

more than 900 employees in

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | EMPLOYEES 52

FURTHER, TOGETHER





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.



 

Various circles intend to continue meeting after the conclusion of the program, demonstrating lasting

impact for both the circle leaders and members.

the U.S. and Puerto Rico took part,



tuition assistance.

Creating More Opportunities for

Women

Gender balance is a priority for

Medtronic. Currently, women make

up 49 percent of our global workforce,



our senior management.

The Medtronic Women’s Network



Inclusion, Diversity, and Engagement



attracting, developing, and advancing

talented women across the company.

The MWN leadership team comprises

some of our most senior women

leaders and connects MWN “hubs” from

around the world. This global Network

brings together diverse perspectives

from our businesses, regions, and

geographies for one common goal

— to advance women in global

leadership positions of director

and above.

Improving Performance

Management

Our employees depend on

consistent and transparent

feedback from managers, starting

with setting clear and aligned

goals. They receive constructive

feedback throughout the year,

SHAPE

We are committed to being



clear vision of where we are

going and our plan to get

there.

ENGAGE

We partner with and involve

others, knowing that diverse

talent, skills, and perspectives lead

to better outcomes.

INNOVATE

We are bold thinkers, creating new

ideas that bring forward our best



partners, and customers.

ACHIEVE

What we promise, we deliver:

results that consistently

meet our highest standards.

LEADERSHIP EXPECTATIONS FRAMEWORK

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | EMPLOYEES 53

accomplishments. Annual

incentives and discretionary

pay for employees and their

managers are also linked to

successful completion of quality

and ethics training activities.

Our approach to compensation

extends to all Medtronic

employees. For information on

executive compensation, see

Governance and Engagement.







designed to improve quality of life

and health to all global full- and





all relevant national regulations,

and are explained by employee

education and information

resources. We provide live



specialists who can answer

questions and solve problems,

on-demand web-based education

tools, and our virtual, interactive



of which are used to support

our global and select country-





Health, dental, and vision

insurance plans with coverage

options for spouses, domestic

partners, and children.

Insurance, including life,

accidental death, and short

and long-term disability.

and leadership teams review the results

and develop action plans to drive

improvements in areas where we have

the greatest opportunities.

In FY2015, more than 38,000 Medtronic

employees completed the survey — a

response rate of roughly 83 percent,

and a 6 percent improvement from

FY2014. Our overall engagement

score increased from 77 percent to 80

percent. We found that employees are



of Medtronic. Career opportunities and

training were the top themes cited by

employees for improvement.

Building on this feedback, we

established actions for FY2016 and

beyond, including our new Career

Development for All initiative.

In addition to our annual survey,

Medtronic conducts, as necessary,

pulse surveys to assess employee

satisfaction. Over the course of the

Covidien acquisition, we used these

surveys to gauge how informed both

Medtronic and Covidien employees felt

throughout the process.

COMPENSATING

EMPLOYEES

All Medtronic employees should share

in our collective success, and fair and



in attracting and retaining the most

talented individuals.

To ensure that we pay employees fairly

we take into account industry and

local market standards, our company’s

overall performance, and individual

in addition to guidance on business,

career, and development goals.

In FY2016, employee performance will



at executing plans, and demonstration

of our four Leadership Expectations:

Shape, Engage, Innovate, and Achieve.

Linking Performance to Ethical

Behavior

The way we conduct business sets

us apart from our competition. We

are a market leader and trusted

partner in the industry because of

our commitment to ethical business

practices. Every employee is expected

to adopt Medtronic’s culture of

ethics and to conduct business with

dedication, honesty, integrity, and

service.

To embed this mindset companywide,

employees conduct self-assessments

of their leadership qualities including

modeling, demonstrating, and

displaying ethical behavior. Managers

read these self-assessments

and evaluate employees on their

achievements in these areas during

annual performance reviews.

LISTENING TO OUR

EMPLOYEES

Feedback goes both ways. We use

our annual Employee Engagement

Survey to take the pulse of our

workforce and hear their concerns

and ideas. Questions cover employee

engagement and inclusion, ethical

behavior, and leadership and

management performance. Executive

CAREER

DEVELOPMENT

FOR ALL

INITIATIVE

A key driver in bringing

our Mission to life is our

commitment to advancing

career opportunities for

all employees. Career

Development for All is an

initiative we are launching

in FY2016 to increase

engagement, retention, and

ultimately business results.

Helping our employees

understand how to navigate

their careers at Medtronic is

a critical part of our collective

success.

The Career Development

for All initiative will provide

a common framework for

all employees, including

managers and other leaders,

and will be foundational to

our talent practices as we go

forward. Starting in FY2016,

our goal is to train managers

and employees to complete

mid-year and year-end

check-ins and to embed the

new career development

framework and concepts into

performance management

processes.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | EMPLOYEES 54



Diversity, and Engagement (GIDE)

oversees initiatives that cultivate

an inclusive environment.

Medtronic is committed

to fostering an inclusive

environment where capable,

diverse talent develops and

grows in pursuit of our Mission.



to increase our representation

of women and ethnically

diverse employees at all levels,

with emphasis on increasing

representation within our

leadership teams (manager and

above).

Employee Resource Groups

and Networks

We facilitate connections

between diverse employees

through our Employee Resource

Groups (ERG) and Networks,

which are voluntary, employee-

led communities. These support

an inclusive culture, bringing

together a broad network

of colleagues with common

backgrounds, facilitating

development opportunities, and

encouraging best practice sharing

across departments. Medtronic

has 14 ERGs and four Networks

across our operations. In addition

to the Medtronic Women’s

Network mentioned above, we

have active participation in our

African Descent, Asian, and

Hispanic Networks.

Rewarding Outstanding

Performance

Recognition is an essential part of

aligning the organization around

the actions and behaviors we value.

The global recognition program

Recognize! provides the opportunity

for managers and employees to reward

fellow employees for demonstrating

expectations that are grounded in

our Mission. Last year, over 37,000

employees received recognition

through this program, including more

than 4,600 for achievements in ethical

performance.

BUILDING AN INCLUSIVE

WORKFORCE

Bringing people with varied

backgrounds, experiences, and



collaborative working environment

is critical to our business success.

Diverse teams help stimulate new and



the views and needs of our global

customer base. Aligned with our Equal

Employment Opportunity (EEO) Policy,

Flexible spending programs for

health and dependent care.

 

maternity, bereavement, and



paternity leave.

Employee stock purchase program



discount.

Tuition aid and other scholarship

opportunities for employees and

their children.

Employee assistance program,

which includes on-site childcare



consultation services, adoption and

eldercare assistance, and counseling

referrals.





contribution pension plans for global

employees, in addition to 401(k) savings



matches a portion of the 401(k) savings

plan based on company performance.

We also contribute 5 percent of a

U.S. employee’s annual earnings in an

investment account as part of our U.S.-



AWARDING OUR

SUCCESSFUL

INTEGRATION

To celebrate the successful

acquisition of Covidien, and

share in our future collective

success, Medtronic was proud



award to all global employees.

The stock option grant vests

in 2018 and aligns with the



provide employees the means

to share in the company’s

success.

FY2015 DIVERSITY

HIGHLIGHTS

n Medtronic received a

perfect score on the

Human Rights Campaign’s

2015 Corporate Equality

Index, which recognizes

achievements in workplace

diversity and equality.

n Medtronic Senior Vice

President of Global

Quality, Luann Pendy, was

recognized as one of the 50

most powerful women in

technology by the National

Diversity Council.

FEMALE AND MINORITY REPRESENTATION AT MEDTRONIC

FY2011 FY2012 FY2013 FY2014 FY2015

Female 21,211 20,824 21,148 21,468 22,657

Percentage of Females in Total

Workforce

49% 49% 49% 49% 49%

U.S. Diversity (Race/Ethnicity),

Excluding Puerto Rico

28% 28% 28% 29% 30%

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | EMPLOYEES 55

Accelerating global employee

training on environmental,

health, and safety (EHS)

requirements. This includes

new global EHS training







measures and protective

practices for risks such as

infectious diseases, ionizing

radiation, and emergency

response.

We continue to make strides in

workplace safety performance.

In FY2015, there was one



at Medtronic. Our employee

incident rate was 0.63 incidents

Identifying injury trends at all sites



projects and activities to reduce the

risk of injuries.

Reducing injury rates stemming

from ergonomic stress. Activities

include integrating ergonomic

design, implementing risk mitigation

tools, providing training and

ergonomic assessments, and

developing a web-based ergonomic

training program.

Establishing safe driving programs





for work.

and ethnically diverse employees

across the company.

ENSURING SAFETY AND

WELLNESS

Employee safety is a top priority

at Medtronic. By investing in a safe

working environment and employee

health and wellness initiatives, we

protect our employees and our

company.

Promoting Workplace Safety

To keep us on track, in 2013 we set 2020

health and safety improvement goals

in four areas, including ergonomics and

safe driving. Our goals include:

Our business-led diversity

networks and resource groups

help our organization build,

develop, and accelerate key talent

by:

Supporting the organization

in increasing diverse/female

representation in leadership

positions.

Partnering with HR to ensure

that our diversity and inclusion



sustainable.

Aligning our diversity and



business priorities.

Advising on programs and

policies to attract, develop,

and advance talented women

FURTHER, TOGETHER

OVERCOMING BARRIERS TO WORKING WITH

DISABILITY

Finding and retaining work is an important element in enabling people with



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



team worked with them to place an individual on Val’s team whose disability made





new recruit is on track to become a full-time employee, receiving wage increases and



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

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | EMPLOYEES 56

behavior. More than 10,000

employees across 32 countries

participated.

SUPPORTING

EMPLOYEE

ENGAGEMENT IN OUR

COMMUNITIES

We are very proud of our

employees who give back to

the communities where we

operate. We support community



three signature programs —

Global Innovation Fellows, Project

6 Employee Volunteerism, and

Global Matching Grants and

Volunteer Grants.

Global Innovation Fellows

Expanding global access to

healthcare is a top priority, both

philanthropically and for our

business. We work with expert



smoking, poor diet, and lack of exercise

that can lead to high blood pressure and

obesity. Initiatives include:

Healthy Habits, which supports goal

setting, tracking, and improving

health

Global Wellness Challenges

Health assessments, screenings,

and vaccinations

Weight management and resilience

programs

Smoking cessation resources

Health improvement programs

Nutritional education

Rewards and incentive programs

Employee assistance programs

designed to help employees

solve workplace and/or personal

challenges

To encourage maximum employee

participation, the program features a

comprehensive Activities Hub and a

Healthy Incentives reward program.

During the year we also launched

several Global Wellness Challenges to

encourage physical activity and healthy

well-being generates concrete returns

in healthcare savings and increased

workforce productivity. Estimates





return.

In 2015, we introduced Healthier

Together, an enhanced global wellness

program. Available to employees and

their spouses in all countries, the

program focuses on engagement in

healthy activities. As a healthcare

company we want to be healthy from

the inside out, reducing risk factors like

READY, SET, GO!

During the spring 2015 Global Wellness Challenge, 5,815 employees

recorded nearly 1.7 billion steps, or roughly 6 million minutes of

exercise, on their way to losing almost 6,000 pounds. This is the

equivalent of walking 33 times around the world!

“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

express myself enough!”

Medtronic Employee

FY2011 FY2012 FY2013 FY2014 FY2015

OCCUPATIONAL HEALTH AND SAFETY

Employee Injury

Incident Rate*

Employee Lost/

Restricted Workday

Case Rate**

*The number of work-related injuries or illnesses serious enough to require treatment beyond ﬁrst-aid, per 100 employees working

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.

Injury and lost/restricted rates do not include portions of Asia, eastern Europe or Latin America sales teams.

1.13

.51

1.05

.47

1.03

.45

.87

.39

.63

.27

per 100 employees, and our

employee lost/restricted workday

case rate was 0.27 lost days per

100 employees. Both are down

substantially from previous years.

Keeping Our Employees and

Business Healthy

We see tremendous value in

encouraging healthy lifestyles

across our global workforce.

Investing in programs that

improve employees’ physical,



HEALTHIER TOGETHER GLOBAL REACH

FY2011 FY2012 FY2013 FY2014 FY2015

Countries with Program

Access

2 12 19 43 43

Percentage of Employees

with Program Access

65% 82% 85% 98% 98%

Employees Completing

Health Questionnaires

21,559 25,324 24,792 23,521 24,542

Employees Receiving

Personal Health Coaching

4,144 3,736 3,513 4,560 1,535

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | EMPLOYEES 57

FURTHER, TOGETHER

GIVING HOPE AND HEALTHCARE ACCESS TO VIETNAM





Health Stations exist to deliver preventive and primary healthcare, local people were shunning these

facilities due to inconsistent patient treatment and poor medical equipment.



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





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



Medtronic Fellow

regions to address local health

challenges in innovative ways

that also inform our business

development. In FY2015, during

its second full year of operation,

Medtronic Philanthropy’s Global

Innovation Fellows program

paired 28 employees from

around the world with global



Bangladesh, Bolivia, Colombia,

Rwanda, the United States, and

Vietnam.

Project 6 Employee

Volunteerism

Each June, Medtronic employees

come together for a month-long global



sixth tenet of the Medtronic Mission

— to maintain good citizenship as a

company.

In FY2015, more than 8,880 team

members across 35 countries

participated in Project 6 activities,

dedicating 29,000 volunteer hours

throughout the month to helping their

local communities.

Medtronic Philanthropy rewards

Project 6 teams that attract the most

employees while achieving the greatest

local impact. This year’s winners,

showcased below, each received a





Dubai, United Arab Emirates:

Employees helped refurbish

a local community center for

children with special needs.

Ontario, Canada: 22 employee



“multiply good” — impacting

more than 2,500 people along

the way.

Tokyo, Japan: Employees took

part in fundraisers for disaster

relief and cleanup and repair

projects.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | EMPLOYEES 58

Memphis, United States:

Almost 1,500 employees

turned out to support



and Girls Inc.

Global Matching Grants

To promote good citizenship,

acknowledge employees’

passions, and increase our

on-the-ground impact in

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,”



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



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.”

communities around the world, we



Medtronic Philanthropy makes dollar-

for-dollar contributions, ranging from



employees make to approved charities.

In FY2015, we received approximately



contributions (including retirees and

Medtronic, Inc. board members) for

matching consideration. Employee



Medtronic added to this generous





chosen by employees that support

communities in need around the world.

In addition, we provide volunteer

grants to global employees who

display outstanding commitments to

charitable causes. For every 25 hours

of service an employee donates to a





through the program, 786 employees



PROJECT 6 IMPACT

FY2011 FY2012 FY2013 FY2014 FY2015

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

Projects

84 255 483 215 274

Learn more about Project 6



MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ENVIRONMENT 59

ENVIRONMENT

We apply our innovative

spirit to reducing our

environmental impact

by proactively managing

environmental, health, and

safety issues across our

value chain. We make sure

these issues are taken into

account in all our business

decisions, from product

design, to manufacturing,

to facility operations. As

part of our commitment,

we’ve set ambitious goals to

further reduce our climate

impact, water use, and waste

generation.

FURTHER, TOGETHER



TO POWER OUR FACILITIES

Fuel cells are innovative low-carbon energy solutions that reduce





facility in Santa Rosa, California. Provided by Bloom Energy, the

system generates low carbon energy by using fuel cells to convert

natural gas into electricity. Each year, the fuel cell system will







water usage by more than 3 million gallons.

“This installation symbolizes Medtronic’s long-standing

commitment to energy conservation and doing right by the

environment,” says Erik Kunz, Medtronic’s Director of EHS and



company to adopt this exciting technology and bring its value to

our triple bottom line.”

MANAGING OUR

ENVIRONMENTAL,

HEALTH, AND SAFETY

PERFORMANCE

Environmental, health, and

safety (EHS) risks can impact our

company’s bottom line, making

EHS strategy an important factor

in our business success. Knowing

this, Medtronic implements

rigorous EHS management

systems across our factories and

EHS Policy

outlines that we:

Comply with all applicable laws

and regulations

Establish objectives and

targets for improvement

Integrate EHS into all business

decisions

Communicate our policy to

stakeholders

Educate our employees

Maintain an EHS infrastructure to

ensure that the proper resources

and accountability are established to

meet this policy

The Medtronic EHS team and the

Business EHS Council oversee our EHS

Policy and conduct audits to ensure

compliance with EHS regulations. In

addition, these groups provide input

and approval for EHS strategies,



and management, and sustainability

opportunities. A Regional EHS

Council manages global EHS risks

in the distribution centers and sales

organization. To enhance our EHS

management, we participate in the

Carbon Disclosure Project, and are

members of U.S. EPA’s Energy Star

Program.

Furthermore, we require our facilities

to meet company EHS standards

that go beyond many country

regulations. Medtronic standards

require the implementation of an

EHS management system based on

international EHS Management System

Standards ISO 14001 and OHSAS

18001. The Medtronic standards ensure

that our EHS managers follow best

practices, which in turn reduce risk,



save costs. As we manage integration

with Covidien, we continue to

evaluate and standardize best

practices across our combined

organization.

To ensure conformity with

internal and external obligations,

Medtronic has established the

practice of conducting EHS audits

at our facilities. For a minority

of our facilities with the highest

potential risk of EHS challenges,

we support the additional cost



Management Systems Standards

ISO 14001 and OHSAS 18001.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ENVIRONMENT 60

VALUE CHAIN

1 2 3 4 5

PRODUCT

DESIGN

OPERATIONS DISTRIBUTION

DISPOSAL

AND

RECYCLING

DOCUMENTATION,

LABELING AND

PRODUCT

PACKAGING

ASSESS:

EHS IMPACTS

MATERIALS OF CONCERN

WASTES AND EMISSIONS

PACKAGING AND

END OF LIFE

REDUCE IMPACTS FROM:

ENERGY & GHG EMISSIONS

WASTES

WATER USE

SAVE MATERIALS

THROUGH:

DIGITAL PRODUCT

DOCUMENTS

PACKAGING REDUCTION

RECYCLED MATERIALS

DISTRIBUTION OPTIMIZE:

HUB LOCATIONS

TRANSPORT EFFICIENCY

CLOSE THE LOOP BY:

RECYCLING USED

PRODUCTS

VALUE CHAIN

1 2 3 4 5

PRODUCT

DESIGN

OPERATIONS DISTRIBUTION

DISPOSAL

AND

RECYCLING

DOCUMENTATION,

LABELING AND

PRODUCT

PACKAGING

ASSESS:

EHS IMPACTS

MATERIALS OF CONCERN

WASTES AND EMISSIONS

PACKAGING AND

END OF LIFE

REDUCE IMPACTS FROM:

ENERGY & GHG EMISSIONS

WASTES

WATER USE

SAVE MATERIALS

THROUGH:

DIGITAL PRODUCT

DOCUMENTS

PACKAGING REDUCTION

RECYCLED MATERIALS

DISTRIBUTION OPTIMIZE:

HUB LOCATIONS

TRANSPORT EFFICIENCY

CLOSE THE LOOP BY:

RECYCLING USED

PRODUCTS

VALUE CHAIN

1 2 3 4 5

PRODUCT

DESIGN

OPERATIONS DISTRIBUTION

DISPOSAL

AND

RECYCLING

DOCUMENTATION,

LABELING, AND

PRODUCT

PACKAGING

ASSESS:

EHS IMPACTS

MATERIALS OF CONCERN

WASTES AND EMISSIONS

PACKAGING AND

END OF LIFE

REDUCE IMPACTS FROM:

ENERGY & GHG EMISSIONS

WASTES

WATER USE

SAVE MATERIALS

THROUGH:

DIGITAL PRODUCT

DOCUMENTS

PACKAGING REDUCTION

RECYCLED MATERIALS

OPTIMIZE:

HUB LOCATIONS

TRANSPORT EFFICIENCY

CLOSE THE LOOP BY:

RECYCLING USED

PRODUCTS

SITES

ISO 14001

CERTIFIED



MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ENVIRONMENT 61

FY2015 Performance

In FY2015, 17 of our facilities

worldwide held one or both



Santa Rosa, California, facility,



year. In addition, our Tolochenaz,

Switzerland, site completed an

ISO 14001 surveillance audit for



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.

MEETING BEST PRACTICE STANDARDS:

MEDTRONIC ISO 14001 AND/OR OHSAS 18001 CERTIFIED SITES

2020 ENVIRONMENTAL PERFORMANCE GOALS

FY2013



FY2014 FY2015 % CHANGE

FY2013 TO FY2015

2020

GOALS*

 772 762

735 -5% -15%

 99 107

107  -10%

 31.9 31.3 29.6 -7% -15%

 12 11.8 11.1 -7% -15%

 75 77 70 -6% -10%

* All percentage reduction goals are based on a FY2013 baseline

Restated from 2014 Integrated Performance Report due to internal validation processes

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ENVIRONMENT 62

FY2015 Performance

Our energy conservation and

purchasing projects, primarily in North



FY2015, we saved over 7,000 MWh and



rebates, and cost avoidances.

Managing Waste

We continually seek ways to reduce

our waste generation and divert waste



have pursued a range of initiatives to

meet our 2020 goal of reducing total

waste generation by 15 percent from

FY2013 levels. These include: reducing

production scrap rates, reducing

packaging, eliminating paper use,

and increasing our overall recycling

opportunities.

Our recycling initiatives play a



responsible waste management. In

FY2015, Medtronic recycled more

than 7,600 metric tons of waste —

accounting for 51 percent of our total

In conjunction with our Corporate

EHS team and Corporate Facilities

employees, Medtronic sites pursue

energy conservation practices that

reduce our short and long-term energy



lighting, ventilation systems and

equipment, and automated building

controls.

We also follow best practices for energy



construction and remodeling projects.



Green Globes standards in the United

States, Canada, and South Africa.

Installing Renewable Energy

As part of our energy conservation

strategy, our businesses are tapping

into clean, renewable energy solutions

– including solar energy – to support

our environmental goals. During

FY2015, we generated nearly 700 MWh

of onsite renewable energy at our

locations in Italy, South Africa, Ireland,

and California.

Reducing Energy Use and

Greenhouse Gas Emissions

Climate change is a major

global challenge to society,

and its impacts also present a

potential threat to the resilience

of our future operations and

supply chain. In pursuit of our

2020 goals, we are working to

conserve energy and reduce our

greenhouse gas emissions (GHG)

across our operations.

The majority of Medtronic’s

operational GHG emissions are

the result of energy use by our

facilities and volatile organic

compounds (VOCs) released

during production. We use



petroleum gas, and fuel oil in our

facilities worldwide. In FY2015,

we used 524,000 megawatt-

hours (MWh) of energy, creating

approximately 197,000 metric

tons of carbon dioxide equivalent.

Our VOC emissions in FY2015

were 129 tons.

LEDS LIGHT THE WAY TO ENERGY SAVINGS IN MINNESOTA





facility as priority areas to reduce energy use and save costs. In December 2014, these facilities installed







save energy by activating only when movement is detected. The Parking Ramp Light Fixture Replacement

Project was a huge success. Combined energy savings in both facilities conserve more than 1,500 MWh per



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.

ENERGY USE

600,000

500,000

400,000

300,000

200,000

FY2011 FY2012 FY2013 FY2014 FY2015

100,000

MWh

MWh/$Million Revenue

EMISSIONS

FY2011 FY2012 FY2013 FY2014 FY2015

250,000

200,000

150,000

100,000

50,000

Tonnes

Tonnes/$Million Revenue

160

140

120

100

Tonnes

Tonnes/$Billion Revenue

VOC EMISSIONS

FY2011 FY2012 FY2013 FY2014 FY2015

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ENVIRONMENT 63

FY2015 Performance

In FY2015 Medtronic generated

approximately 14,900 metric tons of

waste comprising 13,000 metric tons

of non-regulated solid waste and 1,900

metric tons of regulated solid waste.

Non-regulated waste consists primarily



Regulated waste includes production

materials such as metals and chemical-

related wastes. Of the total waste

generated, approximately 7,600 metric

tons or 51 percent was recycled.

While we have been successful in

maintaining our regulated waste at

less than 15 percent of our total waste

generation, FY2015 saw an increase

of 8 percent in our rate of regulated

waste generation due to changes in

our product and related manufacturing

processes. Going forward, Medtronic is



processes and waste streams to further

reduce our regulated waste in line with

our stated goals.

waste generation. We have adopted

a number of innovative recycling

programs. We reclaim raw materials —

including metals and plastics — used in

our products, process chemicals, and

compost food waste in our cafeterias.



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. Through design

innovation, we aim to minimize the life

cycle footprint of our products and

packaging.

“We take pride in our

proactive approach and

incorporate the mantra



reuse in our package



produced smaller, more





Medtronic’s packaging is



see. Our focus on



upon them the





health of our customers,

but also the well-being of



David Knutson, CRHF Global Package

Engineering and Labeling Team

Conserving Water

While water use in our operations

is relatively low, we still recognize

the need to do our part to

conserve water for the greater

good. Our 2020 goal is to reduce

our water use 10 percent from

our 2013 baseline. To accomplish

this, we are pursuing a range of

conservation initiatives. These



our production line processes,

installing landscape and irrigation

system upgrades, and updating

our heating and cooling systems.

In FY2015, we used more than 1.2

million cubic meters of water, a

decrease of more than 5 percent

on the previous year.

NON-REGULATED WASTE

FY2011 FY2012 FY2013 FY2014 FY2015

10,000

12,000

14,000

8,000

6,000

4,000

2,000

1200

1000

800

600

400

200

Tonnes

Tonnes/$Billion Revenue

REGULATED WASTE

FY2011 FY2012 FY2013 FY2014 FY2015

1,400

1,600

1,800

1,200

1,000

800

600

400

200

140

120

100

Tonnes

Tonnes/$Billion Revenue

2,000

160

RECYCLING

FY2011 FY2012 FY2013 FY2014 FY2015

6,000

7,000

8,000

5,000

4,000

3,000

1,000

2,000

80%

70%

60%

50%

40%

30%

10%

20%

Tonnes

% Recycled

WATER USE

FY2011 FY2012 FY2013 FY2014 FY2015

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

120

100

Cubic Meters

Cubic Meters/$Million Revenue

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ENVIRONMENT 64

have participated in sustainability

initiatives. These include

installing desk-side recycling,

maximizing power-saving

options on personal computers,

reducing manufacturing and

packaging waste, and reducing

carbon emissions through use

of alternative transportation. In

addition, we recognize teams that

contribute to our EHS initiatives

through the Medtronic EHS

Sustainability Award.

ENGAGING EMPLOYEES

We expect and encourage our

employees to support sustainability

initiatives to reduce Medtronic’s overall

environmental impact. To encourage

employee participation, we promote

Go Green for Life, an environmental

awareness program available to all

employees. Through Go Green for Life

and other projects, our employees

For example, we have developed

reclamation programs for pacemakers,



which contain sought-after precious

metals that can be reused. Through

these and other reclamation initiatives,

in FY2015 we prevented disposal of

more than 720 metric tons of waste and



savings.

EXTENDING PRODUCT

LIFE

Our concern with the

environmental impact of our

products continues beyond

their delivery to customers and

patients. We consider product

stewardship to include extending

the life of our products, many of

which contain valuable materials.

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.



Our Cardiac Rhythm and Heart Failure team in Mounds View, Minnesota, reduced paper use by





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,





more than $2 million each year.

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



Team Medtronic in Portugal created a fully electronic process for commercial proposals across all







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 | SUPPLY CHAIN 65

SUPPLY CHAIN

We aim to extend the values

put forth in our Mission

beyond our own operations

and into our supply chain. By

partnering with suppliers, we

champion their high ethical

standards, product quality,

health and safety, worker

rights, and environmental

responsibility.

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



owned business.

In 2007, JIT began working with Medtronic to provide a solution

for energy and water tracking. Over the eight-year partnership,

JIT has developed into an important partner in Medtronic’s energy

management — supporting Medtronic’s sites across the globe.

This year marked a number of exciting achievements for JIT

Energy Services and Medtronic. Among a plethora of energy



parking structures at Medtronic’s Operational Headquarters and

Mounds View facilities were replaced with LED systems. This



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



OUR 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. We

build long-term partnerships

with established suppliers that

share our commitment to high

standards.

Across our business, we source

from approximately 59,000

suppliers in 107 countries

spanning North America, Europe,

the Middle East, Asia, and

Australia. In FY2015, we spent



ENSURING PRODUCT

QUALITY

Our partnerships with suppliers

are essential in delivering the

quality products that drive

Medtronic’s success. We provide

direct suppliers with protocols,

training, and support to ensure

that regulatory and self-imposed

quality standards are consistently

met. Our top priority is to avoid

supplier error that can impact

patient health and damage our

reputation.

Our product quality program is built on:

Our Supplier Controls Policy, which

addresses risk management,

evaluation and selection,

performance, monitoring, and



Our Supplier Quality and Excellence

Manual, which all suppliers must

follow.

Training provided to suppliers

through our supplier development

program.

Direct Supplier participation in our

Design, Reliability, Manufacturability

(DRM) process, which ensures

standard product performance.

SOURCING RESPONSIBLY

Responsible supplier management is

more than a commitment we make

to our customers. It also allows us to



where we source materials, services,

and labor.

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. Key issues for

our industry include compliance with

local labor laws relating to minimum

wage, overtime, and maximum working

hours.

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.



tracking which of our top 100 vendors

— representing approximately 40

percent of our total spend — produce

a sustainability report. We found that

nearly 30 percent do.

For more information about

responsible sourcing, please see

our website.

Materials of Concern

To address the environmental and

social impacts of the materials

in our products, Medtronic

follows all applicable local and



We also follow two EU directives

— Restriction of Hazardous

Substances (RoHS) and

Registration and Authorization

and Evaluation of Chemicals

(REACH). As part of our product

design process, we attempt to

minimize the related materials of

concern.



Some of our products contain



tantalum, and gold — which are

commonly sourced from areas of



MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | SUPPLY CHAIN 66

SUPPLY CHAIN SPEND

($ in Millions)

Total Spend: $6,707.9

Australia $54.9

Canada $77.4

China $143.2

France $93.3

Germany $160.9

Ireland $153.5

Israel $10.3 Other $2,881.5

Japan $100.7

Mexico $55.2

Netherlands $129.7

Singapore $31.4

Switzerland $139.6

U.S. $2,676.3

As of the end of FY2015, 98

percent of sourcing and supply

chain management teams

completed comprehensive

Supplier Diversity eLearning

training.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | SUPPLY CHAIN 67

an eLearning platform. These

trainings are now being pushed

out to legacy Covidien sourcing

employees.

We champion supplier diversity

across the business community

through membership and

sponsorship of advocacy groups.

We also contribute through board

leadership and volunteering

for organizations with diversity

missions. Examples include:

the National Minority Supplier

Development Council (including

the Healthcare Industry Group,

Consumer Products Group, and

Supplier Diversity Advocacy

Council), the Women’s Business

Enterprise National Council,

the Metropolitan Economic

Development Association

(MEDA), the North Central

Minority Supplier Development

Council and Corporate

Roundtable, Diversity Information

Resources, and Itasca’s Executive

Council and Business Bridge.

diversity, and joining initiatives that

support supplier diversity beyond our

business.



with diverse suppliers through outreach

at tradeshows and networking events.

These include but are not limited

to: the National Minority Supplier

Development Council’s (NMSDC)

Annual Conference, National Women’s

Business Enterprise Council (WBENC)

Business Fair, National Veteran’s

Small Business Engagement (NVSBE)

conferences, and small business and

chamber of commerce events. The

Medtronic Supplier Registration Portal



diverse suppliers into our standard

procurement process.

We promote supplier diversity through

companywide awareness sessions

and internal training for relevant

employees. Sourcing and select supply

chain employees are required to take

a comprehensive training on supplier

diversity and participate in a webinar

on available tools and resources via

Respond to requests for additional

information, and

 

mineral supplies.

Further details are available in our

.

BUILDING STRENGTH

THROUGH DIVERSITY

We are committed to collaborating with

suppliers from diverse backgrounds,

including small businesses and those

owned by women, minorities, and

veterans. Our diverse suppliers bring

innovative ideas and broaden our

perspective. In turn, this supports our

Mission.

Our Supplier Diversity Team, Supplier

Diversity Steering Committee, and

executive management lead our

Supplier Diversity Program. Our

approach includes: identifying suitable

new diverse suppliers, leveraging

existing diverse supplies, raising

internal awareness about supplier

Republic of Congo and

neighboring countries. Medtronic

supports, and strives to comply

with the regulations established

by Section 1502 of the U.S.

Dodd-Frank Act, which requires



minerals. For calendar year 2014,

we were unable to obtain the

necessary information from all

relevant suppliers. Therefore

we were unable to determine

whether all our products are



A cross-functional team —

composed of sourcing, supply



— works closely with executives

to implement our 

Policy and strategy. We expect

our suppliers to comply with the

Dodd-Frank Act and remove



chain to all extents possible. To





Complete an annual survey

disclosing the origin of any



U.S. DIVERSE SUPPLY CHAIN SPEND BY CATEGORY



FY2011 FY2012 FY2013 FY2014 FY2015

 % U.S.

SPEND

 % U.S.

SPEND

 % U.S.

SPEND

 % U.S.

SPEND

 % U.S.

SPEND

Small Business  33%  27.9%  28.9%  30.7%  29.91%

Veteran-Owned Business  1.2%  1.1%  0.9%  1%  1.35%

Minority-Owned Business Enterprise  2.3%  2.5%  2.6%  3.8%  4.04%

Women-Owned Business Enterprise  4.4%  3.9%  4.1%  2.1%  2.26%

VALUE TO SOCIETY

Business

Ranked 55th among 150 U.S.

companies Forbes’ America’s Most

Reputable Companies in 2014

 

Aristocrat’s Index

Corporate Sustainability

Named to the 2015 Dow Jones

Sustainability North American Index

Listed as a member of the

FTSE4Good Index Series

WORKING RESPONSIBLY

Environment

Ranked 50th among the 500 largest

publicly traded U.S. companies and

80th among the largest publicly

traded companies globally on

Newsweek’s Green Rankings

Diversity and Inclusion

Received 100 percent rating on

Corporate Equality Index, which

recognizes best practices in

recruiting and maintaining a diverse

workforce

Workplace

Ranked 4th on Business Insider’s

Most Meaningful Companies to

Work For

Ranked 14th in Computerworld

Magazine rankings of Best Places to

Work in IT

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | AWARDS AND RECOGNITION 68

AWARDS AND

RECOGNITION



recognized by a variety

of stakeholders for our

performance, policies,

practices, and programs

through which we create

value for society and operate

responsibly. This includes

those that honor our business

performance, community



employment programs, and

environmental initiatives.

Listed below are some

highlights of the awards,

rankings, and recognitions we

received.

For a complete list of our

awards and recognitions in

website.



DATA SUMMARY

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FY2015 DATA SUMMARY 70



DATA SUMMARY



VALUE TO SOCIETY FY2011 FY2012 FY2013 FY2014 FY2015

ACCESS

Research and Development

Investment

     

% of total revenue 9.5% 9.2% 9.4% 8.7% 8.1%

FINANCIAL STRENGTH 

Net Sales Total     

U.S.   





Non-U.S. Developed     

Emerging Markets     

Net Earnings as reported (GAAP)     

Net Repurchase of Common Stock  

  

Dividends to Shareholders     

Additions to Property, Plant, and Equipment     

COMMUNITY INVESTMENTS 

Medtronic Foundation Giving     

Corporate Cash Contributions     

Product Donations      

Philanthropic Contributions as a % of Global Pretax



1.4% 1.5% 1.5% 1.5% 1.9%

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



    

Employee Injury Incident Rate

1.13 1.05 1.03 0.87 0.63

Employee Lost/Restricted Workday Case Rate

0.51 0.47 0.45 0.39 0.27

ENVIRONMENT

 814 798 772 762

735

 94 97 99 107

107

 31.6 31.6 31.9

31.3

29.6

 14.9 14.9 12 11.8

11.1

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FY2015 DATA SUMMARY 71

(Continued)

WORKING RESPONSIBLY FY2011 FY2012 FY2013 FY2014 FY2015

Volatile Organic Compound Emissions



8.3 8.4 7.5 9.3 7.3

 72 74 75 77 70



Restated from 2014 Integrated Performance Report.





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.



MEDTRONIC GLOBAL WORKFORCE



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

 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

 27,593 26,071 26,099 25,927 27,086

Female 12,588 11,854 11,844 11,746 12,296

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

(nonmanagement)

20,886 18,322 18,969

19,358 20,572

Management

4,461 4,450 4,654 4,855 5,273

Executive

327 303 284 275 318



Management = managers, senior managers, directors, and senior directors

Executive = all levels of vice presidents

Restated from 2014 Integrated Performance Report.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FY2015 DATA SUMMARY 72



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     

 45 57 60 59 56

Canada 8 7 9 6 11

Europe/Central Asia/

Middle East

797 798 821 845 877

Latin America 0 0 0 0 0

 246 195 192 187 183



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   20,066  

 1,335 1,492 1,694 1,900 2,113

Canada 455 444 465 456 484

Europe/Central Asia/

Middle East

3,962 4,000 4,054 4,099 4,192

Latin America 2,021 2,172 2,201 2,357 2,628

 12,342 11,659 11,652 11,559 12,113

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | FY2015 DATA SUMMARY 73



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  2,372



2,226 2,236

 253 249 307 257 292

Canada 39 52 51 44 18

Europe/Central Asia/

Middle East

332 455 378 410 517

Latin America 743 750 440 266 383

 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    2,302 

 296 413 463 394 431

Canada 85 32 59 24 29

Europe/Central Asia/

Middle East

456 354 336 420 440

Latin America 705 509 295 360 255

 1,237 1,154 1,102 1,104 1,419

ABOUT THIS

REPORT

The Medtronic 2015 Integrated





prepared in accordance with the G4

Core guidelines of the Global Reporting

Initiative (GRI), the world’s most

recognized framework for sustainability

reporting. The report also references

points of interest as determined

by the Sustainability Accounting

Board Standards (SASB) for Medical

Equipment and Supplies in addition

to the Dow Jones Sustainability Index

questionnaire, which we have reported

to since 2008.

Unless otherwise stated, all

performance data in this report covers



from April 25, 2014 through April 24,

2015.

This report includes data from

Medtronic, Inc. and all of its

consolidated subsidiaries. In January

2015, we completed our acquisition of



this report and our FY2015 Form 10-K

includes Covidien’s fourth quarter

performance and results. Except where

otherwise noted, Covidien’s non-



been integrated in this year’s report.

Other excluded entities, noted below,





EHS Data: does not include Kanghui

Global Workforce Data: does not

include CardioInsight, Kanghui,

Libeier, or Sophono

Injury and Lost/Restricted Rates: do

not include portions of Asia, Eastern

Europe, or Latin America sales

teams

Supplier Spend, Supplier Diversity,

and Wages Paid Data: does not

include Advanced Uro-Solutions,

Biostar, Cardiocom, Corventis,

Diabeter, Kanghui, NGC Medical,

Osteotech, PEAK Surgical, Salient

Surgical Technologies, Sapiens,

Sophono, TYRX, or Visualese



U.S. dollars. Environmental, health, and

safety data is from our manufacturing

and research and development

facilities.

Any forward-looking statements are

subject to risks and uncertainties such

as those described in Medtronic’s



Securities and Exchange Commission.



from anticipated results.

For additional business and

sustainability information, please refer

Form 10-K,

Proxypress releases, and our

CDP disclosure.

Medtronic has not sought independent



practices in place to internally validate

the data.

We want to hear from all our

stakeholders. To provide feedback or

request additional information, please

email integratedreport@medtronic.

com.

This is our second annual

Integrated Report, which includes



information. Our last integrated

report, which covered FY2014,

was published in October 2014.

We believe that our integrated

report provides a comprehensive

overview of Medtronic. It



business, considering the social

and environmental factors and

impacts. By working responsibly,

we believe that we increase our

ability to add positive value to

society.

The integrated reporting index

that follows highlights some of

the most important ways that our

business success is tied to our

social, environmental, and ethical

performance, and provides page

references for more information.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | ABOUT THIS REPORT 75

ABOUT THIS

REPORT

INTEGRATED REPORT INDEX



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



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



Governance and Engagement

Ethical conduct as a driver of our credibility and success

Employees

Measurable returns on investments in employee wellness

Employees



quality and ethics

Employees

The importance of an inclusive workforce to business success

Environment

Environmental, Health, and Safety management system impacts business risk,



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

DISCLOSURE OF MANAGEMENT APPROACH TO MATERIAL ISSUES

ACCESS

 







legal and regulatory restrictions.

Disclosure on

Management Approach

DMA-a

The accessibility of our therapies, services and solutions is imperative to achieving our Mission

and sustaining long-term business success. In FY2015, our revenue grew faster in emerging

markets than in the developed world; making our therapies, services and solutions accessible to

more people is inherent in our growth strategy.

We also view access to healthcare as a human rights issue, and believe that all people deserve

the care they need. Our Mission implores us to contribute to human welfare, and our access

strategy is a key element of this.

Through business and philanthropic activities, we assess local, unmet healthcare needs, and

tailor new or existing products and therapies to overcome barriers to care.

DMA-b

We are guided by our Mission – To contribute to human welfare by application of biomedical

engineering in the research, design, manufacture, and sale of instruments or appliances that

alleviate pain, restore health, and extend life.

Each business unit develops new products, therapies, and programs to reach more people with

life-changing care. We also develop new programs, initiatives, and business activities designed

to increase access to healthcare, such as the Global Health Initiative, the Patient Access

Acceleration Program and Medtronic Hospital Solutions.

Medtronic Philanthropy also contributes to our access strategy. The Global Health Access



information about management of our grant programs is available at http://philanthropy.

medtronic.com/grants-and-funding/health-access-grants/index.htm.

DMA-c



entire company. The Board of Directors and Executive Committee have primary responsibility



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



Boundaries



Access, and our related impacts, are relevant for all our customers and patients, as well as



therapies.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GRI SUPPLEMENT 78

GRI

SUPPLEMENT

The Global Reporting



are an internationally

recognized standard for

reporting on corporate

social and environmental

responsibility performance.

Throughout this index, we

include information and



Integrated Performance



and corporate governance

guidelines. We have reported

on GRI Aspects related to



determined by a materiality

assessment conducted in



We also include a

Sustainability Accounting

Standards Board (SASB) index

for the Medical Equipment

and Supplies Industry.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GRI SUPPLEMENT 79

Reference for more

information

See Access, pages 11-19 of our Integrated Performance Report, and Financial Strength, pages

25-33, for more information about how we provide access to healthcare to those who need it.

Visit philanthropy.medtronic.com

Related GRI Aspects SO: Local Communities

PRODUCT QUALITY

 

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

Management Approach

DMA-a



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



Executive Committee.





The Medtronic Operating System ensures quality in production

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



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 80

Boundaries



Product quality is relevant across the entire product lifecycle. Within Medtronic, we manage



Product quality is relevant to external groups including customers – the medical professionals

and patients who rely on our products and therapies.

Reference for more

information

See Patient Safety, pages 20-24 for more information about how we manage product quality

across our business.

Related GRI Aspects PR: Compliance

PR: Customer Health and Safety

PR: Product Labeling

ETHICS IN SALES AND MARKETING

 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

Management Approach

DMA-a

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:

Code of Conduct

Global Business Conduct Standards Policy, including our Anti-corruption Policy and Global





Code of Business Conduct and Ethics for Members of the Board of Directors

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 81

Disclosure on

Management Approach

(continued)

Each Medtronic business unit maintains internal review processes to ensure appropriate

product promotion. Medtronic also follows internal policies that prohibit the unlawful



DMA-c



oversees and implements all ethics policies and programs. The chief ethics and compliance



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.



Boundaries



Ethics in sales and marketing, and its related impacts, is relevant to all Medtronic employees

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

information

See Governance and Engagement, pages 41-48, for more information on our approach to

ethical sales and marketing.

Related GRI Aspects SO: Anti-Competitive Behavior

SO: Anti-Corruption

PR: Marketing Communications

RESPONSIBLE SOURCING

 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

Management Approach

DMA-a

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



Our supplier quality program is built on:

Our Supplier Controls Policy, which addresses risk management, evaluation and selection,



MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GRI SUPPLEMENT 82

Disclosure on

Management Approach

(continued)

Our Supplier Quality and Excellence Manual, which all suppliers must follow.

Training provided to suppliers through our supplier development program.

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

communities.

Reference for more

information

See Supply Chain, pages 65-67 for more information about how we ensure responsible sourcing

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

 Minimizing the lifecycle footprint of our products and packaging through design innovation.

Disclosure on

Management Approach

DMA-a

Driven by our Mission, we proactively manage environmental, health, and safety issues across

our value chain to minimize our environmental impact.

DMA-b



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 83

Disclosure on

Management Approach

(continued)

DMA-c

The Medtronic EHS team and the Business EHS Council oversee our EHS Policy and conduct

audits to ensure compliance with EHS regulations. In addition, these groups provide input



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.

Reference for more

information

See Environment, pages 59-64 for more information about how we manage our product

stewardship.

Related GRI Aspects EN: Materials

EN: Products and Services

TRIAL DATA

 Ethical and responsible conduct related to clinical trials, including transparency of data, ethics in

research and development, and clinical data sharing.

Disclosure on

Management Approach

DMA-a

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.



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.



serves on the Executive Committee.



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 84

Boundaries







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

information

See Patient Safety, pages 20-24 for more information about how we manage ethics,

transparency, and reliability of trial data.

Related GRI Aspects PR: Customer Health and Safety

STAKEHOLDER ENGAGEMENT

 Engaging our stakeholders throughout the healthcare system, including patients, physicians,



organizations, employees, suppliers, investors, shareholders, regulators, and the communities

where we operate.

Disclosure on

Management Approach

N/A

Boundaries



N/A

Reference for more

information

See Governance and Engagement, pages 41-48, and Sustainability Risk and Opportunity, pages

7-9, for more information about how we engage with stakeholders.

Related GRI Aspects General Standard Disclosures

DEVICE SECURITY

 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

Management Approach

DMA-a

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 85

Disclosure on

Management Approach

(continued)

DMA-c



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

Device security is relevant to external groups including customers - the medical professionals

and patients who rely on our products and therapies.

Reference for more

information

See Governance and Engagement, pages 41-48, and the Medtronic Statement on Medical

Device Security for more information on device security.

Related GRI Aspects PR: Customer Health and Safety

PR: Customer Privacy

PHILANTHROPY

 Charitable contributions through Medtronic Philanthropy, foundation giving, corporate cash

contributions, and product donations.

Disclosure on

Management Approach

DMA-a

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



diseases by 25 percent by 2025.



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.



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 86

Disclosure on

Management Approach

(continued)

DMA-c

Medtronic Philanthropy continually evaluates the impact of our philanthropic activities and

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



Boundaries



Within Medtronic, our philanthropic activities apply primarily to our employees, who

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

information

See Community Investments, pages 34-39, for more information about our approach to

Philanthropy.

Related GRI Aspects SO: Local Communities

EC: Indirect Economic Impact



 Ethical and responsible conduct related to post-market surveillance, including transparency of

data, data collection, and clinical data sharing.

Disclosure on

Management Approach

DMA-a

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



development. Post-market surveillance also helps us understand product performance in a

real-world setting, measure performance against known complications, and identify potential



for the patients who depend on them.

DMA-b



who serves on the Executive Committee.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GRI SUPPLEMENT 87

Disclosure on

Management Approach

(continued)

DMA-c

The Quality and Technology Committee of the Board of Directors monitors and evaluates our

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





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

information

See Patient Safety, pages 20-24, for more information about how we manage ethics,

transparency, and reliability of clinical data in our post-market surveillance.

Related GRI Aspects PR: Customer Health and Safety

CORPORATE GOVERNANCE

 The policies, procedures, and practices that govern our company, including board structure and

independence, executive compensation, and accountability.

Disclosure on

Management Approach

N/A

Boundaries



N/A

Reference for more

information

See Governance and Engagement, pages 41-48, for more information about our corporate

governance structure.

Related GRI Aspects General Standard Disclosures

TALENT

 Talent relates to the recruitment, retention, and development of all employees. This includes

employee training, career management and promotion, and leadership development of all



Disclosure on

Management Approach

DMA-a

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,



Diversity, inclusion, and gender balance in the workforce are also considered priority areas for

Medtronic.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GRI SUPPLEMENT 88

Disclosure on

Management Approach

(continued)

DMA-b

Our Mission inspires us to recognize the personal worth of our employees by providing an

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:

Code of Conduct

EEO statement

Voice Your Concern Policy

Medtronic Employee Assistance Program



DMA-c



responsibility for talent related initiatives.

The Medtronic Compensation Committee assists the Board of Directors in overseeing and



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



and escalates as necessary.



mechanisms including the Employee Engagement Survey, Pulse Surveys, and Performance

Evaluations.

Boundaries



Within Medtronic, our approach to talent is relevant to all current employees.

Outside Medtronic, our approach to talent is relevant to all prospective employees and former

employees.

Reference for more

information

See Employees, pages 49-58, Governance and Engagement, pages 41-48, and our

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 89

FINANCIAL STRENGTH

 Sustainable revenue generation and business growth through disciplined management of



Disclosure on

Management Approach

DMA-a





strength of our business enables us to improve clinical outcomes, expand access to healthcare,



DMA-b



1. Therapy Innovation

2. Economic Value

3. Globalization



shareholders:

1. Deliver consistent mid-single digit revenue growth.

2. Grow earnings per share 200 to 400 basis points faster than revenue.



DMA-c



Directors.





capital structure. Full details of committee responsibilities are available in the committee

charters on our Corporate Governance website.



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



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

information

See Financial Strength, pages 25-33, our 2015 Form 10-K, and our Corporate Governance and

Investor Relations

Related GRI Aspects EC: Economic Performance

EC: Indirect Economic Impacts

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GRI SUPPLEMENT 90

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,

and names of countries where either the organization has



sustainability topics covered in the report.

Company Overview

2015 Form 10-K, pg. 9-10, 113

Supply Chain – Our Approach

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

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

bargaining agreements.

Employees – Our Global Workforce

G4-12: Describe the organization’s supply chain.

Supply Chain



the organization’s size, structure, ownership, or its supply chain.

Company Overview

Supply Chain

2015 Form 10-K

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GRI SUPPLEMENT 91

INDICATOR RESPONSE

G4-14: Whether and how the precautionary approach or

principle is addressed by the organization.

Patient Safety

Environment – Managing our Environmental, Health, and

Safety Performance

Environment – Minimizing our Operational Footprint

G4-15: Externally developed economic, environmental and

social charters, principles, or other initiatives to which the

organization subscribes or which it endorses.

Sustainability Risk and Opportunity – Creating

Opportunities

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

associations) and/or national/international advocacy

organizations in which the organization:

Has positions in governance bodies;

Participates in projects or committees;

Provides substantive funding beyond routine membership

dues; or

Views membership as strategic.

Access – Breakthrough Solutions For Access To Care

Patient Safety – Conducting Responsible Research and

Clinical Trials

Governance and Engagement – Lobbying and Political

Contributions Disclosure

Governance and Engagement – Engaging Stakeholders

Supply Chain – Building Strength Through Diversity

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17: All entities included in the organization’s consolidated



of these entities is not covered by the report.

Company Overview

About this Report

2015 Form 10-K



and the Aspect Boundaries and how the organization has



Content.

Sustainability Risk and Opportunity

About this Report





Sustainability Risk and Opportunity

G4-20: The Aspect Boundary within the organization for each

material Aspect.

Disclosures on Management Approach

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INDICATOR RESPONSE

G4-21: The Aspect Boundary outside the organization for each

material Aspect.

Disclosures on Management Approach



in previous reports, and the reasons for such restatements.

Any restatements of information and data provided in

previous reports are noted throughout this report.



the Scope and Aspect Boundaries.

About this Report

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



with whom to engage.

Sustainability Risk and Opportunity – Understanding our

Risks and Opportunities

Governance and Engagement – Engaging Stakeholders

G4-26: The organization’s approach to stakeholder

engagement, including frequency of engagement by type and

by stakeholder group, and an indication of whether any of the



preparation process.

Sustainability Risk and Opportunity – Understanding our

Risks and Opportunities

Governance and Engagement – Engaging Stakeholders

G4-27: Key topics and concerns that have been raised through

stakeholder engagement, and how the organization has

responded to those key topics and concerns, including through

its reporting. The stakeholder groups that raised each of the key

topics and concerns.

Sustainability Risk and Opportunity – Understanding our

Risks and Opportunities

Governance and Engagement – Engaging Stakeholders

Throughout the report

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

its contents.

About this Report

G4-32: Report the ‘in accordance’ option the organization has

chosen; the GRI Content Index for the chosen option and the

reference to the External Assurance Report, if the report has

been externally assured.

About this Report

G4-33: The organization’s policy and current practice with

regard to seeking external assurance for the report.

At this time, we do not pursue external assurance for our



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INDICATOR RESPONSE

GOVERNANCE

G4-34: The governance structure of the organization, including

committees of the highest governance body. Identify any

committees responsible for decision-making on economic,

environmental and social impacts.

Governance and Engagement – How We Govern Our

Company

Corporate Governance website

ETHICS AND INTEGRITY

G4-56: The organization’s values, principles, standards and

norms of behavior such as codes of conduct and codes of ethics.

Governance and Engagement – Committed To An Ethical

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

Management Approach

DMA: Financial Strength

G4-EC1: Direct economic

value generated and

distributed.

Financial Strength

Community Investments

2015 Form 10-K

G4-EC2: Financial

implications and other

risks and opportunities

for the organization’s

activities due to climate

change.

Sustainability Risk and

Opportunity

INDIRECT ECONOMIC IMPACTS

Disclosure on

Management Approach

DMAs: Responsible

Sourcing, Philanthropy,

Financial Strength

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INDICATOR RESPONSE IDENTIFIED OMISSIONS EXPLANATION FOR OMISSIONS

G4-EC7: Development and

impact of infrastructure

and services supported.

Access - Breakthrough

Solutions for Access to Care

Financial Strength

Community Investments –

Bringing Healthcare to More

People

Community Investments –

Disaster Relief

Percentage of recycled

input materials used

to manufacture the

organization's primary

products and services.

The information is currently

unavailable.

We do not collect enterprise-wide

data on our recycled materials. We

plan to track this through a data

collection system in future years.

PROCUREMENT PRACTICES

Disclosure on

Management Approach

DMA: Responsible Sourcing

G4-EC9: Proportion of

spending on local suppliers



operation.

Supply Chain Percentage of the

procurement budget



locations of operation

spent on suppliers local

to that operation.

The information is currently

unavailable.

At this time we do not collect data

on the locations of operation spent

on suppliers local to that operation.

This metric is not relevant to our

business.

CATEGORY: ENVIRONMENTAL

MATERIALS

Disclosure on

Management Approach

DMA: Product Stewardship

G4-EN2: The percentage

of recycled input materials

used to manufacture the

organization’s primary

products and services.

Environment Percentage of recycled

input materials used

to manufacture the

organization's primary

products and services.

The information is currently

unavailable.

We do not collect enterprise-wide

data on our recycled materials. We

plan to track this through a data

collection system in future years.

PRODUCTS AND SERVICES

Disclosure on

Management Approach

DMA: Product Stewardship

G4-EN27: Extent of

impact mitigation of

environmental impacts of

products and services.

Environment

Environment – Minimizing

Our Operational Footprint

SUPPLIER ENVIRONMENTAL ASSESSMENT

Disclosure on

Management Approach

DMA: Responsible Sourcing

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INDICATOR RESPONSE IDENTIFIED OMISSIONS EXPLANATION FOR OMISSIONS

G4-EN32: Percentage

of new suppliers that

were screened using

environmental criteria.

Supply Chain – Sourcing

Responsibly

Percentage of new

suppliers that were

screened using

environmental criteria.

The information is currently

unavailable.

At this time, our supplier risk

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

Management Approach

DMA: Talent

G4-LA1: Total number and

rates of new employee

hires and employee

turnover by age group,

gender, and region.

Employees

Data Summary

TRAINING AND EDUCATION

Disclosure on

Management Approach

DMA: Talent

G4-LA9: Average hours

of training per year per

employee by gender, and

by employee category.

Employees – Developing

Employee Potential

Training by employee

category.

The information is currently

unavailable.

At this time we do not track

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

Management Approach

DMA: Talent

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INDICATOR RESPONSE IDENTIFIED OMISSIONS EXPLANATION FOR OMISSIONS

G4-LA13: Ratio of basic

salary and remuneration

of women to men by

employee category, by



operation.

Employees – Developing

Employee Potential

Ratio of basic salary and

remuneration of women

to men by employee



locations of operation.

The information is subject to



Although Medtronic tracks the

ratio of base salary and total

remuneration of women to men by



of operation after normalizing



part-time status, job tenure, and

job performance, this information



SUPPLIER ASSESSMENT FOR LABOR PRACTICES

Disclosure on

Management Approach

DMA: Responsible Sourcing

G4-LA14: Percentage of

new suppliers that were

screened using labor

practices criteria.

Supply Chain – Sourcing

Responsibly

Percentage of new

suppliers that were

screened using labor

practices criteria.

The information is currently

unavailable.

At this time, our supplier risk

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

Management Approach

DMA: Talent

G4-LA16: Number

of grievances about



addressed, and resolved

through formal grievance

mechanisms.

Governance and

Engagement – Committed

to Ethical Workplace

Number of grievances

about labor practices



resolved through formal

grievance mechanisms.

The information is currently

unavailable.

At this time we do not quantify





Medtronic tracks the total number

of concerns we receive, but do not

separate by issue (since many are

cross-cutting).

HUMAN RIGHTS



Disclosure on

Management Approach

DMA: Responsible Sourcing

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INDICATOR RESPONSE IDENTIFIED OMISSIONS EXPLANATION FOR OMISSIONS

G4-HR3: Total number of

incidents of discrimination

and corrective actions

taken.

Supply Chain – Sourcing

Responsibly

Total number of incidents

of discrimination and

corrective actions taken.

The information is currently

unavailable.

At this time, we do not track

discrimination incidents for our

suppliers. We do not plan to collect



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

Management Approach

DMA: Responsible Sourcing

G4-HR4: Operations and



which the right to exercise

freedom of association and

collective bargaining may



risk and measures taken to

support these rights.

Supply Chain – Sourcing

Responsibly

Operations and suppliers



right to exercise freedom

of association and

collective bargaining

may be violated or at



measures taken to

support these rights.

The information is currently

unavailable.

At this time, we do not track

freedom of association and

collective bargaining activities for

our suppliers. We do not plan to



but expect our suppliers to follow

local laws and regulations as well as

guidelines we’ve articulated in our

Responsible Supply Chain policies.

SUPPLIER HUMAN RIGHTS ASSESSMENT

Disclosure on

Management Approach

DMA: Responsible Sourcing

G4-HR10: Percentage of

new suppliers that were

screened using human

rights criteria.

Supply Chain – Sourcing

Responsibly

Percentage of new

suppliers that were

screened using human

rights criteria.

The information is currently

unavailable.

At this time, our supplier risk

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 98

INDICATOR RESPONSE IDENTIFIED OMISSIONS EXPLANATION FOR OMISSIONS

HUMAN RIGHTS GRIEVANCE MECHANISMS

Disclosure on

Management Approach

DMA: Responsible Sourcing

G4-HR12: Number of

grievances about human



addressed, and resolved

through formal grievance

mechanisms.

Supply Chain – Sourcing

Responsibly

Number of grievances

about human rights



and resolved through

formal grievance

mechanisms.

The information is currently

unavailable.

At this time, we do not track

human rights grievances for

our suppliers. We do not plan to



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

Management Approach

DMAs: Access, Philanthropy

G4-SO1: Percentage

of operations with

implemented local

community engagement,

impact assessments, and

development programs.

Access – Breakthrough

Solutions for Access to Care

Community Investments –

Bringing Healthcare to More

People

Percentage of operations

with implemented local

community engagement,

impact assessments, and

development programs.

The information is currently

unavailable.

At this time, we do not quantify

local community engagement

activities as a percentage of

operations and do not have plans to

do so. Our products and therapies

are available to patients all over



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



organizations to assess local needs

and develop locally appropriate

healthcare solutions.

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GRI SUPPLEMENT 99

INDICATOR RESPONSE IDENTIFIED OMISSIONS EXPLANATION FOR OMISSIONS



Disclosure on

Management Approach

DMA: Ethics in Sales and

Marketing



incidents of corruption and

actions taken.

Governance and

Engagement – Committed

to an Ethical Workplace

Governance and

Engagement – In

Conversation with Tom

Schumacher, Chief Ethics





corruption and actions

taken.

The information is currently

unavailable.

Medtronic tracks the total number

of employees terminated for ethics

and compliance related lapses.

This information is not broken out

by corruption-related activities.



Disclosure on

Management Approach

DMA: Ethics in Sales and

Marketing

G4-SO7: Total number

of legal actions for anti-

competitive behavior,

anti-trust, and monopoly

practices and their

outcomes.

Legal actions for material

issues can be found in our

2015 Form 10-K

PRODUCT RESPONSIBILITY

CUSTOMER HEALTH AND SAFETY

Disclosure on

Management Approach

DMAs: Product Quality, Trial

Data, Device Security, Post-

market Surveillance

G4-PR1: Percentage of



service categories for

which health and safety

impacts are assessed for

improvement.

Patient Safety

G4-PR2: Total number

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.

Patient Safety

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GRI SUPPLEMENT 100

INDICATOR RESPONSE IDENTIFIED OMISSIONS EXPLANATION FOR OMISSIONS

PRODUCT AND SERVICE LABELING

Disclosure on

Management Approach

DMA: Product Quality

G4-PR4: Total number

of incidents of non-

compliance with

regulations and voluntary

codes concerning product

and service information

and labeling, by type of

outcomes.



actions related to product

labeling. In the event of a



take all necessary actions

to correct or remedy the

root cause a problem with

our products or packaging,

and have systems in place to



MARKETING COMMUNICATIONS

Disclosure on

Management Approach

DMA: Ethics in Sales and

Marketing

G4-PR7: Total

number of incidents

of non-compliance

with regulations

and voluntary codes

concerning marketing

communications, including

advertising, promotion,

and sponsorship by type of

outcomes.

Governance and

Engagement: Our Approach

to Critical Ethical Issues

CUSTOMER PRIVACY

Disclosure on

Management Approach

DMA: Device Security

G4-PR8: Total number of

substantiated complaints

regarding breaches of

customer privacy and

losses of customer data.

Medtronic did not receive

any substantiated

complaints from outside

parties or regulatory bodies

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 101

INDICATOR RESPONSE IDENTIFIED OMISSIONS EXPLANATION FOR OMISSIONS

COMPLIANCE

Disclosure on

Management Approach

DMA: Product Quality

G4-PR9: Monetary value



non-compliance with laws

and regulations concerning

the provision and use of

products and services.

2015 Form 10-K

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

Safety Alerts for Human Medical Products (Medical Devices)

database.

None reported in the FDA’s MedWatch Safety Alerts for

Human Medical Products database

ETHICAL MARKETING



settlements associated with false marketing claims, including



marketing prosecuted under the False Claims Act. Dollar amount



implemented in response to events.

Partially reported in Governance and Engagement > An

Ethical Approach to Sales and Marketing

HC0201-05: Description of code of ethics governing promotion



compliance.

Reported in Governance and Engagement > Committed

to an Ethical Workplace

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

increases (for all products) to the annual increase in the U.S.

Consumer Price Index.

Not Reported

HC0201-07: Description of how price information (such as

average and median) for each product is disclosed to customers

or their agents (e.g., group purchasing organizations or

consultants).

Partially reported in Access > Aligning Value for Better

Patient and Cost Outcomes > Price Information

Disclosure

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GRI SUPPLEMENT 102

METRIC RESPONSE

ENERGY, WATER AND WASTE EFFICIENCY

HC0201-08: Total annual energy consumed (gigajoules) and

percentage renewable (e.g., wind, biomass, solar).

Reported in Environment > Minimizing our Operational

Footprint > Reducing Energy Use and Greenhouse Gas

Emissions

HC0201-09: Total water withdrawals and percentage from

water-stressed regions – High or Extremely High Baseline Water



process water recycled.

Partially reported in Environment > Minimizing our

Operational Footprint > Conserving Water

HC0201-10: Amount of waste (metric tons); percentage that is



Partially reported in Environment > Minimizing our

Operational Footprint > Managing Waste

PRODUCT DESIGN AND LIFECYCLE MANAGEMENT

HC0201-11: Description of environmental and human health

considerations made at product lifecycle stages such as design,

procurement, manufacturing, distribution, use, and end-of-life



Partially Reported in Environment > [infographic]

Mitigating our impact across the Value Chain

HC0201-12: Description of Extended Producer Responsibility

(EPR) initiatives to promote manufacturer take-back, reuse,

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.

Partially reported in Environment > [infographic]

Mitigating our impact across the Value Chain

CORRUPTION AND BRIBERY



settlements associated with bribery, corruption, or unethical

business practices, including violations of the Foreign Corrupt

Practices Act and those associated with providing kickbacks



description of corrective actions implemented in response to

events.

Reported in Governance and Engagement > Committed

to an Ethical Workplace > Combating Corruption

HC0201-14: Description of code of ethics governing interactions

with health care professionals including mechanisms to ensure

employee compliance.

Reported in Governance and Engagement > Committed

to an Ethical Workplace

Governance and Engagement > An Ethical Approach to

Sales and Marketing

MEDTRONIC 2015 INTEGRATED PERFORMANCE REPORT | GRI SUPPLEMENT 103

METRIC RESPONSE

MANUFACTURING AND SUPPLY CHAIN QUALITY MANAGEMENT

HC0201-15: Number and type of FDA enforcement actions

taken in response to violations of current good manufacturing

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.

Patient Safety > Monitoring Product Use and

Performance > Product Related Regulatory Actions

HC0201-16: Percentage of facilities and Tier I suppliers

participating in third-party audit programs for integrity of supply

chain and products (e.g., materials, devices, packaging, etc.).

Partially Reported in Environment > Managing our

Environmental, Health, and Safety Performance

Supply Chain > Sourcing Responsibly



the distribution chain, particularly with respect to wholesalers,

re-packagers, and/or contract distributors.

Partially Reported in Supply Chain > Ensuring Product

Quality

HC0201-18: Discussion of any existing or projected risks or

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.

Not Reported



Minneapolis, MN 55432-5604

USA

Tel: (763) 514-4000

Fax: (763) 514-4819

medtronic.com