Core Insights - Zimmer Biomet Holdings, Inc. has appointed Jehanzeb Noor as Senior Vice President, Chief Strategy, Innovation and Business Development Officer, reporting to President and CEO Ivan Tornos [1][2] Group 1: Leadership and Responsibilities - Jehanzeb Noor will lead strategy development and execution, oversee M&A activities including the integration of the pending acquisition of Paragon 28, and manage research and product development organizations [2] - Noor will also serve as Chief of Staff to the CEO, indicating a significant role in the company's strategic direction [2] Group 2: Background and Experience - Prior to joining Zimmer Biomet, Noor was President and Managing Director for Europe, Africa, and Asia at Trivium, where he focused on operational excellence and margin expansion [3] - Noor has held various leadership roles, including CEO of Smiths Medical and positions at Amcor, McKinsey, Ford Motor Company, and Constellation Energy Commodities Group [3] Group 3: Educational Qualifications - Jehanzeb Noor holds a Master of Science in Product Development, a Bachelor of Science in Finance, and a Bachelor of Science in Mechanical Engineering, all from the Massachusetts Institute of Technology (MIT) [4] Group 4: Company Overview - Zimmer Biomet is a global leader in medical technology, focusing on maximizing mobility and improving health through innovative products and integrated digital and robotic technologies [5][6] - The company has over 90 years of experience and is committed to delivering high-quality solutions to patients and providers [6]

Core Insights - Zimmer Biomet Holdings, Inc. has launched the "You'll Be Back" campaign aimed at creating an online community for individuals suffering from joint pain, encouraging them to share their experiences and connect with healthcare professionals [1][2] - The campaign is led by Arnold Schwarzenegger, who emphasizes the importance of community support in overcoming mobility challenges and aims to inspire individuals to take action against their pain [2][3] - Osteoarthritis is highlighted as a prevalent condition affecting nearly 27 million Americans over the age of 65, with projections indicating that by 2030, approximately 4 million people in the U.S. will require joint replacement surgery [3] Company Overview - Zimmer Biomet is recognized as a global leader in medical technology, focusing on enhancing mobility and health through innovative products and integrated digital solutions [5][6] - The company has over 90 years of experience in the industry, positioning itself to deliver high-quality solutions to both patients and healthcare providers [6] Campaign Details - The "You'll Be Back" campaign invites individuals with joint pain to submit their stories on a dedicated website, with selected participants featured in a motivational docuseries [2][3] - The campaign aims to empower patients by providing them with resources and a platform to voice their health journeys, thereby fostering a sense of community [2][3]

Financial Performance - In 2024, the company's net sales increased by 3.8% to $7,678.6 million compared to 2023, driven by market growth, new product introductions, and positive price realization [171]. - Net earnings for 2024 were $903.8 million, a decline from $1,024.0 million in 2023, primarily due to higher restructuring charges and intangible asset amortization [172]. - The company expects 2025 revenue growth of 1.0% to 3.5%, with foreign currency exchange rates negatively impacting net sales by approximately 1.5% to 2.0% [173]. - U.S. net sales grew by 3.5% in 2024, while international net sales increased by 4.3%, both driven by market growth in key product categories [176][182]. - The company's Knees and Hips product categories saw net sales increases of 4.4% and 1.6%, respectively, in 2024 compared to 2023 [177][183]. Cost and Expenses - Cost of products sold, excluding intangible asset amortization, was 28.5% of net sales in 2024, an increase from 28.2% in 2023, primarily due to higher manufacturing costs [184][185]. - Intangible asset amortization expense increased to 7.7% of net sales in 2024, reflecting acquisitions and buyouts of licensing agreements [186]. - Gross margin for 2024 was 63.8%, a decrease from 64.2% in 2023, primarily impacted by manufacturing costs and changes in foreign currency exchange rates [187]. - Research & development expenses decreased in both amount and as a percentage of net sales in 2024 compared to 2023, driven by lower compliance spending and savings from the 2023 Restructuring Plan [188]. - Selling, general & administrative expenses increased in amount but decreased as a percentage of net sales in 2024, attributed to variable selling costs and higher bad debt-related charges [189]. - Total expenses related to restructuring programs were $219.0 million in 2024, up from $151.9 million in 2023, mainly due to the initiation of the 2023 Restructuring Plan [190]. Cash Flow and Investments - Cash flows from operating activities were $1,499.4 million in 2024, a decrease from $1,581.6 million in 2023, primarily due to higher payments for accounts payable and restructuring-related costs [203]. - Cash flows used in investing activities increased to $888.1 million in 2024 from $778.9 million in 2023, including $276.3 million for acquisitions and $153.0 million for technology access [204]. - As of December 31, 2024, the company had $525.5 million in cash and cash equivalents and $1.0 billion available to borrow under a revolving credit agreement [201]. - The company plans to acquire Paragon 28, Inc. for approximately $1.2 billion, expected to be funded through cash on hand and debt financing [211]. Tax and Shareholder Returns - The effective tax rate for 2024 was 12.7%, significantly higher than 4.0% in 2023, influenced by foreign rate differentials and changes in unrecognized tax benefits [194]. - A $2.0 billion share repurchase program was authorized in May 2024, with $868.0 million executed in 2024 to return cash to investors [214]. Restructuring Plans - The 2023 Restructuring Plan is expected to incur total pre-tax charges of approximately $120 million by the end of 2025, with $114 million already incurred through December 31, 2024 [215]. - The 2021 Restructuring Plan resulted in $169 million of total pre-tax charges and is estimated to have reduced gross annual pre-tax operating expenses by approximately $190 million relative to the 2021 baseline expenses by the end of 2024 [215]. - The 2019 Restructuring Plan is expected to incur total pre-tax restructuring charges of approximately $400 million by the end of 2025, with $368 million incurred through December 31, 2024 [215]. Liabilities and Risks - The company has a remaining liability of $154.6 million from the transition tax related to the deemed repatriation of foreign earnings, with $68.7 million recorded in current income tax liabilities and $85.9 million in non-current income tax liabilities as of December 31, 2024 [217]. - Total liabilities for litigation matters were estimated at $156.4 million as of December 31, 2024, with potential for additional charges upon resolution of uncertainties [218]. - The company has entered into contractual arrangements that may result in future payments ranging from $0 to $325 million, dependent on product R&D milestones and sales [221]. - The company had net assets in legal entities with non-U.S. Dollar functional currencies amounting to $1,950.5 million as of December 31, 2024 [238]. - The majority of the company's debt is fixed-rate, and a 10 percent change in interest rates would not have a material effect on interest expense, net [244]. - The company is exposed to credit risk primarily through cash and cash equivalents, derivative instruments, and accounts receivable, but believes reserves for losses are adequate [246]. - The company performs sensitivity analyses related to potential commodity price changes as part of its risk management program [241].

Core Viewpoint - Zimmer Biomet (ZBH) is currently facing significant challenges due to macroeconomic factors, staffing shortages, and supply chain issues, leading to a negative outlook reflected in its Zacks Rank of 5 (Strong Sell) [1][2]. Group 1: Growth Challenges - The company is experiencing growth impediments due to industry-wide staffing shortages and supply chain hazards, exacerbated by geopolitical complications and high policy rates aimed at combating inflation [2][3]. - Specific challenges include reimbursement headwinds in the Restorative Therapies business and acute supply challenges in Sports and Trauma, which are pressuring revenues and operating profits [3]. - The adverse impact of foreign exchange rates has been notable, with a 1% decline in net sales in 2024 and an expected 1.5%-2% impact on 2025 revenues [5]. Group 2: Financial Performance - In Q4 2024, Zimmer Biomet reported a 5.1% increase in the cost of products sold and a 3.4% rise in selling, general, and administrative expenses, leading to a contraction in adjusted gross and operating margins [4]. - The company ended Q4 2024 with cash and cash equivalents of $525.5 million and total debt of $6.20 billion, indicating a concerning solvency position as near-term payable debt exceeds cash on hand [6]. - The debt-to-capital ratio improved slightly to 33.2% from 34.3% in the previous quarter, but the overall debt levels remain high relative to cash reserves [7]. Group 3: Positive Factors - Despite the challenges, there has been gradual stability in the global musculoskeletal market, with certain geographies showing better-than-expected sales growth driven by improved procedural volume [8]. - In Q4 2024, the company experienced strong growth in large joints, with global sales in Knees, Hips, and S.E.T. categories increasing by 5.6%, 4%, and 8.4% respectively at constant exchange rates [9]. - Zimmer Biomet is focusing on expanding its presence in international developed and emerging markets, which are expected to provide long-term growth opportunities [10][11]. Group 4: Market Performance - Over the past three months, Zimmer Biomet's shares have declined by 10.8%, contrasting with a 6% growth in the industry, although strategic market expansion and new product launches are anticipated to help regain momentum [12].

Core Insights - Zimmer Biomet's shares declined to $105 in September, indicating potential value despite projected mid-single digit sales growth, improved cash flows, and higher earnings growth driven by recent M&A activities [1] Group 1: Company Performance - The company is expected to achieve mid-single digit sales growth [1] - Improved cash flows and higher earnings growth are anticipated due to recent mergers and acquisitions [1] Group 2: Investment Opportunities - The investing group "Value In Corporate Events" focuses on identifying opportunities in IPOs, mergers & acquisitions, earnings reports, and changes in corporate capital allocation [1] - The group covers 10 major events monthly to find the best investment opportunities [1]

Core Insights - Zimmer Biomet Holdings, Inc. (ZBH) reported fourth-quarter 2024 adjusted earnings per share (EPS) of $2.31, slightly exceeding the Zacks Consensus Estimate by $0.01, marking a 5% increase year over year [1][3] - The company’s full-year adjusted EPS for 2024 was $8.00, reflecting a 5.9% improvement from 2023, also beating the Zacks Consensus Estimate by $0.01 [3] - Following the earnings announcement, ZBH shares fell over 1.3% in pre-market trading [3] Financial Performance - ZBH's fourth-quarter net sales reached $2.02 billion, a 4.3% increase year over year (4.9% at constant exchange rates), surpassing the Zacks Consensus Estimate by 0.6% [4] - For the full year, ZBH generated revenues of $7.68 billion, up 3.8% from the previous year (4.8% at constant exchange rates), also exceeding the Zacks Consensus Estimate by 0.1% [4] Revenue Breakdown - In Q4, U.S. sales totaled $1.18 billion, up 4.7% year over year, while international sales were $842 million, reflecting a 3.7% increase year over year (5.2% at constant exchange rates) [5] - Revenue from the Knees segment grew 5.6% year over year at constant exchange rates to $839.2 million, while the Hips segment saw a 4% increase to $520 million [6] - The S.E.T. segment reported an 8.4% year-over-year growth at constant exchange rates, reaching $489.4 million, while the "Other" category saw a decline of 4.3% to $174.6 million [7] Margin Analysis - Adjusted gross margin was 71%, down 123 basis points year over year, while adjusted operating margin contracted 43 basis points to 28.7% [8] - Selling, general and administrative expenses rose 3.4% to $746.9 million, whereas research and development expenses decreased by 4.3% to $108.4 million [8] Cash Position - At the end of Q4, ZBH had cash and cash equivalents of $525.5 million, up from $415.8 million a year ago [10] - Cumulative net cash provided by operating activities was $1.49 billion, compared to $1.58 billion in the previous year [10] Future Outlook - ZBH expects reported revenue growth for 2025 to be between 1% and 3.5% year over year, with an anticipated adverse impact from foreign exchange of 1.5% to 2% [11] - The company projects adjusted EPS for 2025 to be in the range of $8.15 to $8.35, while the Zacks Consensus Estimate stands at $8.57 [11] Strategic Developments - ZBH announced a definitive agreement to acquire Paragon 28, a company specializing in the foot and ankle orthopedic segment, which is expected to enhance ZBH's diversification strategy and growth potential in the $5 billion foot and ankle market [14]

Financial Data and Key Metrics Changes - In Q4 2024, Zimmer Biomet achieved nearly 5% constant currency revenue growth, marking the 12th consecutive quarter of mid-single digit or better growth [10][32] - Adjusted earnings per share (EPS) grew by 6% to $8, with free cash flow reaching over $1 billion [32][50] - The company provided full-year 2025 financial guidance of constant currency revenue growth of 3% to 5% and adjusted EPS of $8.15 to $8.35, excluding the impact of the Paragon 28 acquisition [13][44] Business Line Data and Key Metrics Changes - The S.E.T. segment grew by 8.4%, with notable growth in CMFT at 13% and Sports at 22% [38] - Global knees grew by 5.6%, with U.S. growth at 3.9% and international growth at 8% [35] - Global hips grew by 4%, with U.S. growth at 3.2% and international growth at 4.8% [36] Market Data and Key Metrics Changes - The U.S. business grew by 4.7%, driven by strong high single-digit growth in S.E.T., while international growth was 5.2% [34] - The ASC market is rapidly expanding, with the company seeing a significant increase in sales from this segment, which has grown from 2-3% in 2019 to nearly 20% today [120] Company Strategy and Development Direction - The company plans to focus on people and culture, operational excellence, and innovation and diversification as key priorities for 2025 [15][26] - A four-point plan has been established to enhance performance in these areas, including leadership changes and a commitment to operational excellence in the U.S. market [16][17] - The acquisition of Paragon 28 is expected to enhance Zimmer Biomet's offerings in the foot and ankle space, complementing existing portfolios and driving growth [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of end markets, driven by an aging population, technological advancements, and a shift to outpatient procedures [12] - The company anticipates continued growth in the S.E.T. segment and expects to maintain a strong balance sheet post-acquisition of Paragon 28 [49][50] - Management acknowledged challenges from foreign exchange impacts but remains optimistic about achieving financial goals in 2025 [46][130] Other Important Information - The company reported a decline in the Technology and Data segment by 4.3% due to tough comparisons from the prior year [39] - Adjusted gross margin was 71.3%, lower than the previous year, primarily due to capitalized cost increases [41] - The company ended 2024 with $526 million in cash and cash equivalents and plans to continue share repurchases opportunistically [42][50] Q&A Session Summary Question: Guidance Philosophy for 2025 - Management indicated a more appropriate guidance range for 2025, considering one less selling day and potential drivers for upper range performance [55][58] Question: Integration of Paragon 28 - Management expressed confidence in minimal disruption during the integration of Paragon 28, highlighting the strong culture and innovation within the company [63][66] Question: Sales Growth and Margin Progression - Management provided insights on expected revenue growth and margin progression, indicating a stronger second half of 2025 due to new product uptake and easier comparisons [80][81] Question: EPS Growth Guidance - Management attributed the EPS guidance to foreign exchange impacts and emphasized the importance of investments for long-term growth [130] Question: ASC Opportunity - Management highlighted the significant growth potential in the ASC market, with plans to leverage the Paragon acquisition to enhance offerings in this space [120][123]

Zimmer Biomet (ZBH) reported $2.02 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 4.3%. EPS of $2.31 for the same period compares to $2.20 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.01 billion, representing a surprise of +0.53%. The company delivered an EPS surprise of +0.43%, with the consensus EPS estimate being $2.30.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Zimmer Biomet (ZBH) came out with quarterly earnings of $2.31 per share, beating the Zacks Consensus Estimate of $2.30 per share. This compares to earnings of $2.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.43%. A quarter ago, it was expected that this orthopedic device maker would post earnings of $1.75 per share when it actually produced earnings of $1.74, delivering a surprise of -0.57%.Over the last four quarters, ...

345 E. Main St. Warsaw, IN 46580 www.zimmerbiomet.com Exhibit 99.1 Heather Zoumas-Lubeski David DeMartino (445) 248-0577 (646) 531-6115 heather.zoumaslubeski@zimmerbiomet.com david.demartino@zimmerbiomet.com Media Investors Zach Weiner (908) 591-6955 zach.weiner@zimmerbiomet.com Zimmer Biomet Announces Fourth Quarter and Full-Year 2024 Financial Results (WARSAW, IN) February 6, 2025 — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today reported financial results for the quarter and year ended December 31 ...