Covidien Acquisition Supplier FAQ

January 26, 2015

Dear Valued Supplier,

Today, we are excited to announce that Covidien has now officially joined Medtronic, creating the world's premier medical technology and services company.

Collectively, we share a common purpose — to alleviate pain, restore health and extend life. And now with the deep expertise and creativity of more than 85,000 people in 160 countries, we will treat more patients, in more ways, and in more places around the world.

We brought our two companies together to accelerate and advance our ability to create meaningful innovations that help solve healthcare's greatest challenges. We believe this combination provides us with the unique and extensive capability to improve clinical outcomes, expand global patient access, and optimize cost and efficiency, thereby improving healthcare systems around the world.

Achieving these goals requires us to further optimize our supply chain, and we are counting on our supplier partners to keep providing innovative solutions to ensure continued quality and deliver economic value. We are committed to keeping you informed of decisions or changes that may affect our relationship. In the meantime, you should expect business to continue as usual. There will be no changes in our ordering, invoicing, and payment processes at this time.

This is a very exciting and historic time for us, and we look forward to working with you to pursue the many opportunities ahead. If you have any questions, please feel free to reach out to your respective contact at our organizations or submit them to the addresses noted below.

Sincerely,

Francois Monory 
Vice President, Operations 
Medtronic 
globalsourcing@medtronic.com

David E. Wohler
Vice President, Global Sourcing
Covidien
global.sourcing@covidien.com

Covidien Acquisition Supplier FAQ

Medtronic/Covidien Supplier FAQ

Existing suppliers to Medtronic or Covidien

Q: How will the acquisition affect existing supplier relationships?

A: Achieving our integration goals will require us to further optimize our supply chain, and we are counting on our supplier partners to keep providing innovative solutions that will ensure continued quality and deliver economic value.

The materials and services provided by our existing supply base are critical to ensuring our ability to meet our customer commitments. Following the close of the acquisition, please continue to work with the businesses you supply as you have been doing. We expect that it may take several months to fully integrate the two companies. During that time, the integration of the two current supply bases will be a major focus of the Sourcing team and this will result in changes and opportunities over time for the best performing and preferred suppliers of both companies.

We value your contribution to our business and we look forward to working with you to pursue the many opportunities ahead.

If you are a supplier to Covidien

Q: Are existing agreements (CDA's, contracts, quality agreements, etc.) with Covidien still valid?
A: Yes. There is no need to amend any existing agreement as a result of the acquisition. Any change required as a result of the combination of our existing supply base will be timely and explicitly communicated.

Q: Will I continue to be a supplier now that Covidien has become part of Medtronic?
A: You should continue to support Covidien business, now that Covidien is part of Medtronic, just as you have been doing. In the next several months, our Sourcing teams will complete the integration of Covidien and Medtronic, resulting in a new, combined business model.

Q: How will I receive purchase orders now?
A: There will be no immediate change. Continue to work with your current contacts. You will be contacted directly should there be changes in the future.

Q: Where do I send my invoices now?
A: Please continue to send your invoices to the same address you have been using. You will be instructed of any future changes through updated purchase orders.

Q: Will my payment terms change?
A: There is no change to your payment terms as a result of the acquisition of Covidien by Medtronic. Payment terms are provided on the purchase order or relevant contract. You will be contacted in advance if the payment terms are being considered for revision based on Medtronic purchasing / procurement practices.

Q: Will the combination of Covidien and Medtronic mean possible new business for me?
A: Yes, there is definitely potential for new or increased business opportunities for our highest-performing suppliers. We will review the supply bases of both Medtronic and Covidien over the next several months and determine the best way to support the overall supply chain strategy of the combined company.

If you are a Medtronic supplier

Q: Did Medtronic change its name to "Medtronic plc"?
A: No, Medtronic plc is a separate legal entity. Medtronic, Inc. remains in existence and continues to conduct business.

Q: How does the acquisition affect future ordering, invoicing, and payment processes?
A: Suppliers should continue to follow the instructions on purchase orders and relevant contracts. Any change in process will be promptly communicated to suppliers at the time of the change.

Q: Are existing agreements (CDA's, contracts, quality agreements, etc.) with Medtronic still valid?
A: Yes. There is no need to amend any existing agreement as a result of the acquisition. Any change required as a result of the combination of our existing supply base will be timely and explicitly communicated.

Q: Does the combination of Covidien and Medtronic have any impact on the Medtronic buy points?
A: No, you should continue to supply as you currently are. Any changes will be communicated as needed.

Q: Will the combination of Covidien and Medtronic mean possible new business for me?
A: Yes, there is definitely potential for new or increased business opportunities for our highest-performing suppliers. We will review the supply bases of both Medtronic and Covidien over the next several months and determine the best way to support the overall supply chain strategy of the combined company.

If you are a supplier to both Medtronic and Covidien

Q: I supply material/services to both Medtronic and Covidien, may I send a single invoice after the close of the acquisition?
A: Please continue to send separate invoices because of different processes and systems.

Q: I have a contract with both Medtronic and Covidien, which contract will govern after the acquisition?
A: You should continue to operate under the existing terms of all current agreements. If there are any changes necessary to either contract with Medtronic or Covidien, we will advise you as soon as possible. If you have any concerns about any differences that may exist between current contract terms, please raise them to your respective contact at each organization for review.

If you have additional questions or encounter any problems

If you still have specific questions that have not been answered here, you may submit your question(s) to the respective supplier e-mailbox: globalsourcing@medtronic.com or global.sourcing@covidien.com. We will make every attempt to respond to your question(s) within one to two business days.