Project and Certification Approval Processes Kaizen Event Black Ink Ops: Ramiro Jara, Paul Koelle, Willis Read-Button, Jessica Watkins Report Out for May 12, 2010 MGMT E-5060

Global manufacturer of medical devices and pharmaceuticals 42,000 employees with 58 manufacturing facilities located in 16 countries 2009 Sales – $10.9 BB Medical Devices Endomechanical, Energy, Airway, Soft Tissue Repair, Oximetry Pharmceuticals Specialty Pharma, Contrast, Radiopharma Medical Supplies OR, Nursing Care, SharpSafety About Covidien Covidien / Black Ink Ops | May 12, 2010 | Confidential2 |

Master Black Belt 44 Black Belt 367 Green Belt 861 Lean Leader374 OpEx Program Savings to Date: OpEx Program Certifications to Date: > $1.2 BB Covidien / Black Ink Ops | May 12, 2010 | Confidential3 |

Kaizen Event Daily Structure Covidien / Black Ink Ops | May 12, 2010 | Confidential4 | Focused 5-day, team-based, action-oriented activity focused on one discrete improvement effort Part of Value Stream Analysis of strategic processes 4-6 people in a team, devoted to the effort for the week Change is implemented as part of the Event ‘Lean Sensei’ coach helps with methodology and learning

Covidien / Black Ink Ops | May 12, 2010 | Confidential5 | Process Overview: Project and Certification Approvals Candidate Training Exam Corporate OpEx Certification Project #2 Certification Request Project #1 Approval Scope

Paper Based Forms Project Tracking - Instantis Current State Process Covidien / Black Ink Ops | May 12, 2010 | Confidential6 | Multitude of Steps Long Lead Time

Current State Value Stream Map (VSM) Covidien | August 9, 2015 | Confidential7 | Int’lUSA Lead Time: hrs650.81hrs Cycle Time:3.31hrs2.81hrs First Pass Yield:50%

Pareto Chart Covidien | August 9, 2015 | Confidential8 | Batching Projects Lack Std. Work Misuse of Tools Incomplete Forms Excessive L/T

Root Causes/Solutions ProblemAction Batching of 1 st and 2 nd ProjectsBegin Monthly Project Reviews Enable project approvals at local level Lack of Standard WorkCreate standard work guidelines Misuse of ToolsCreate more accountability and mentorship through Monthly Reviews and Quarterly Audits by Corporate OpEx team Create Feedback Loop back to training team Incomplete FormsMigrate from paper-based to electronic forms with required field lockouts Excessive Lead TimeMigrate from paper-based to electronic forms for improved stakeholder access Improve ability to access forms and approve during travel Eliminate redundant sign-offs and touches Covidien | August 9, 2015 | Confidential9 |

Future State VSM Covidien | August 9, 2015 | Confidential10 | Lead Time: hrs Cycle Time:0.95 hrs First Pass Yield:>90%

VSM Side-by-Side Covidien | August 9, 2015 | Confidential11 | Current Future

Hand-off Diagram Side-by-Side: Project Approval Covidien | August 9, 2015 | Confidential12 | CurrentFuture

Hand-off Diagram Side-by-Side: Certification Approval Covidien | August 9, 2015 | Confidential13 | CurrentFuture

Metrics Side-by-Side Current StateFuture StateChange Cycle Time3.31 hrs0.95 hrs▼71% Lead Time hrs48.5 hrs▼93% Value Added Time0.50%27.98%▲5596% First Pass Yield50%>90%▲>40% Touches339-10▼70% # of Forms62▼66% # of Signatures117▼36% Annual Savingsn/a$117,398*▲ Covidien | August 9, 2015 | Confidential14 | *Corporate OpEx team savings based on current salary numbers.

The Softer Side of Savings Opportunity to find and catch project defects earlier in process Improved mentorship from OpEx Directors to OpEx Managers/Leaders in the plant, and eventually to candidates Accountability and performance tracking with better metrics, data collection, and report out capability Empowerment of GBU and Plant OpEx personnel Job satisfaction which results in less turnover Environmental responsibility (less paper/toner waste) Covidien | August 9, 2015 | Confidential15 |

Covidien | August 9, 2015 | Confidential16 | In progress Complete Scheduled Workstream 1: Value Stream Analysis and Certification Kaizen Kaizen #1 to document and analyze VS Roll out at one GBU for Testing Phase May 12AugustJune 15 Implementation Timeline July 15 Future Kaizen Events: Monthly Review, Qtrly. Audit, DFSS Train and roll out company- wide to 58 plants May-July IS develops eForms Run pilot in Texas plant May 14 Workstream 2: Additional Kaizen Events

Q&A Covidien / Black Ink Ops | May 12, 2010 | Confidential17 |

Appendix Covidien / Black Ink Ops | May 12, 2010 | Confidential18 |

Covidien / Black Ink Ops | May 12, 2010 | Confidential19 |

Covidien / Black Ink Ops | May 12, 2010 | Confidential20 | Our team at work…