UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (State or other jurisdiction of incorporation or organization) Delaware 13-4151777 (IRS Employer Identification No.) 345 East Main Street, Warsaw, IN 46580 (Address of principal executive offices) Telephone: (574) 373-3333 Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Common Stock, $0.01 par value | ZBH | New York ...

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Q2 2023 Earnings Conference Call August 1, 2023 8:30 AM ET Company Participants Keri Mattox - SVP and Chief Communications & Administration Officer Bryan Hanson - Chairman, President & CEO Suketu Upadhyay - EVP & CFO Ivan Tornos - COO Conference Call Participants Travis Steed - Bank of America Merrill Lynch Richard Newitter - Truist Securities Philip Chickering - Deutsche Bank Michael Matson - Needham & Company Joshua Jennings - TD Cowen Ryan Zimmerman - BTIG Robert M ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2023 Commission File Number 001-16407 ZIMMER BIOMET HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 13-4151777 (IRS Employer Identification No.) 345 East Main Street, Warsaw, IN 46580 (Address of principal ex ...

Zimmer Biomet Holdings (NYSE:ZBH) Q1 2023 Earnings Conference Call May 2, 2023 8:30 AM ET Company Participants Keri Mattox - Chief Communications Officer Bryan Hanson - Chairman President and CEO Suketu Upadhyay - CFO Ivan Tornos - COO Conference Call Participants Steve Lichtman - Oppenheimer Shagun Singh - RBC Capital Markets Matt Taylor - Jefferies Vijay Kumar - Evercore ISI Robbie Marcus - JPMorgan Matthew O'Brien - Piper Sandler Joanne Wuensch - Citi Lawrence Biegelsen - Wells Fargo Travis Steed - Bank ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2023 Commission File Number 001-16407 ZIMMER BIOMET HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 13-4151777 (IRS Employer Identification No.) 345 East Main Street, Warsaw, IN 46580 (Address of principal e ...

Financial Performance - In 2022, the company's net sales increased by 1.6% compared to 2021, with net sales of $6,939.9 million, impacted by a negative 5.0% effect from foreign currency exchange rates [176][181]. - Net earnings for 2022 were $231.4 million, a decrease from $401.6 million in 2021, primarily due to a goodwill impairment charge of $289.8 million [177]. - In 2022, net sales in the United States were $4,012.4 million, reflecting a 4.1% increase, while international sales were $2,927.5 million, a decline of 1.5% [181][188]. - The company's Knees and Hips product categories saw net sales increases of 4.9% and 2.1%, respectively, in 2022, despite negative impacts from foreign currency exchange rates [189]. - Global selling prices negatively affected year-over-year sales by 1.0% in 2022, with pricing pressure from governmental healthcare cost containment efforts [186]. - Changes in foreign currency exchange rates had a negative effect of 5.0% on year-over-year sales in 2022 [187]. - The company experienced a positive effect of 7.6% from changes in volume and mix of product sales in 2022, driven by the recovery of elective surgical procedures [184]. - In 2022, the company's operating profit decreased to 10.0% of net sales from 12.6% in 2021, reflecting a decline of 2.6 percentage points [191]. - Gross margin for 2022 was 63.3%, slightly down from 63.5% in 2021, primarily due to inflationary cost pressures and lower average selling prices [192]. Future Outlook - The company expects revenue growth in 2023 driven by market growth, recovery in procedure volumes from COVID-19, and new product introductions, despite anticipated deferrals of elective surgical procedures [179]. - Supply chain and inflation pressures are expected to continue into 2023, with some easing anticipated in the second half of the year [179]. Expenses and Charges - Research and development (R&D) expenses decreased to 5.9% of net sales in 2022 from 6.4% in 2021, attributed to the absence of significant third-party IPR&D project agreements [195]. - Selling, general and administrative (SG&A) expenses fell to 39.8% of net sales in 2022 from 41.6% in 2021, mainly due to a decline in litigation-related expenses by $135.1 million [196]. - The company recognized a goodwill impairment charge of $289.8 million in 2022, impacting the effective tax rate which rose to 27.9% from 10.7% in 2021 [198][204]. Cash Flow and Investments - Cash flows from operating activities decreased to $1,356.2 million in 2022 from $1,404.3 million in 2021, primarily due to higher tax payments [214]. - Cash flows used in investing activities increased to $522.0 million in 2022 from $443.3 million in 2021, reflecting ongoing investments in product portfolio and acquisitions [215]. - Cash flows used in financing activities decreased significantly to $775.7 million in 2022 from $1,306.0 million in 2021, influenced by the ZimVie spinoff and debt repayments [216]. - As of December 31, 2022, the company had $375.7 million in cash and cash equivalents, with $1.0 billion available under a 364-day revolving credit agreement [211]. Debt and Taxation - As of December 31, 2022, the company had outstanding debt of $5,696.5 million, with $544.3 million classified as current debt [220]. - The company expects future effective tax rates to be lower than the U.S. corporate income tax rate of 21.0% due to a favorable mix of earnings between U.S. and foreign locations [205]. - The company has a remaining liability of $187.8 million from a one-time tax on the mandatory deemed repatriation of foreign earnings [227]. Shareholder Returns - The company declared cash dividends of $0.24 per share in February, May, August, and December 2022, and plans to continue quarterly dividends subject to Board approval [223]. - A share repurchase program of $1.0 billion was authorized in February 2016, with $150.0 million repurchased in Q4 2022, leaving $850.0 million remaining under the program [224]. Restructuring and Impairment - The 2021 Restructuring Plan is expected to incur pre-tax restructuring charges of approximately $220 million, with an anticipated reduction in annual pre-tax operating expenses of about $190 million by the end of 2024 [225]. - The company recorded a goodwill impairment charge of $289.8 million for its EMEA reporting unit due to its carrying value exceeding estimated fair value [239]. Market Risks and Credit Management - The company is exposed to market risks including foreign currency exchange rates, interest rates, and commodity prices, and manages these risks through derivative financial instruments [244]. - The company maintains cash and cash equivalents primarily in highly-rated financial instruments, with a focus on capital preservation [253]. - The company has a concentration of trade receivables primarily in the public and private hospital and healthcare industry in the U.S. and internationally [256]. - Credit risk exposure is mitigated through credit approvals, limits, and monitoring procedures, with adequate reserves for losses [257]. - The company's accounts receivable collection in certain countries is influenced by the financial stability of the healthcare sectors and national economic conditions [256]. - In Europe, the company is indirectly exposed to government budget constraints and price reduction initiatives due to selling products to public hospitals [256]. - Deterioration in government funding for public hospital programs may lead to significant bad debt expenses in the future [256].

Financial Data and Key Metrics - Q4 2022 net sales were $1.825 billion, up 2.7% reported and 8.3% on a constant currency basis [50] - Full-year 2022 free cash flow totaled $910 million, with Q4 free cash flow at $115 million [55] - Adjusted diluted EPS for Q4 was $1.88, up from $1.79 in Q4 2021 [79] - 2023 guidance includes reported revenue growth of 1.5% to 3.5%, with constant currency growth of 3% to 5% [56] Business Line Performance - Global knees grew 10.2%, with U.S. knees up 10.8% and international knees up 9.3% [51] - Global hips grew 8.4%, with U.S. hips up 9.5% and international hips up 10.8% [51] - Sports, extremities, and trauma (SET) grew 7.6%, driven by CMFT, sports medicine, and upper extremities [78] Market Performance - U.S. sales grew 6.2%, driven by elective procedure recovery and strong execution in knees and hips [77] - International sales grew 11.1%, with strong performance in EMEA and APAC, despite COVID-19 impacts in China [77] Strategy and Industry Competition - The company is in Phase 3 of its transformation, focusing on portfolio transformation to increase revenue in faster-growing markets [38] - Innovation is a key competitive advantage, with over 50 new product launches from 2018 to 2022 and plans for 40+ more by 2025 [47][48] - The company is targeting acquisitions in robotics, data, ASC settings, and faster-growing orthopedic sub-segments like sports and extremities [39] Management Commentary on Operating Environment and Future Outlook - The company expects supply chain challenges to persist through the first half of 2023, with improvement in the second half [64] - Pricing headwinds are expected to be slightly better than the historical average of 200-300 basis points [82] - The company is confident in its ability to deliver solid growth and earnings performance in 2023, despite a dynamic environment [58] Other Important Information - The company reduced net debt by approximately $150 million in Q4, ending the quarter with $375 million in cash and cash equivalents [55] - The adjusted tax rate for 2023 is expected to be broadly in line with 2022 at 16.5% [81] Q&A Summary Question: FX impact and EPS flow-through - FX was a 150 basis point headwind, improved from an initial estimate of 300 basis points [9] - EPS flow-through is expected to be 20% to 30%, slightly lower than the previous year [11] Question: Growth in the SET segment - The company expects mid-single-digit growth in SET for 2023, driven by upper extremities, sports business, and CMFT [14][15] Question: Operating margin levers - Revenue growth, sourcing improvements, and SG&A leverage are key drivers for operating margin expansion [23][26] Question: Recon market growth - The recon market grew 8% in 2022, driven by easier comps and better pricing, but this growth is not expected to be sustainable [29][30] Question: Robotic shoulder opportunity - The company expects to be first to market with its robotic shoulder platform, which is seen as transformational [34][35] Question: M&A strategy - The company is focused on smaller to midsized deals that enhance its position in faster-growing markets like robotics, sports, and extremities [38][39] Question: Pricing performance - Pricing erosion in 2022 was 100-150 basis points, better than the historical average of 200-300 basis points, with expectations for 2023 to be slightly better than the historical average [123][124] Question: Supply chain challenges - Supply chain challenges are broad-based, affecting materials, labor, and sterilization capacity, with improvement expected in the second half of 2023 [132][151] Question: Innovation pipeline - The company has a robust innovation pipeline, with key products like Persona OsseoTi and HipInsight expected to drive growth [149][150] Question: China market outlook - The company sees China as an attractive market for growth in 2023 and beyond, with COVID impacts stabilizing [187][204]

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Q3 2022 Earnings Conference Call November 2, 2022 8:30 AM ET Company Participants Keri Mattox - Senior Vice President, Chief Communications & Administration Officer Bryan Hanson - Chairman, President & Chief Executive Officer Suky Upadhyay - Executive Vice President & Chief Financial Officer Ivan Tornos - Chief Operating Officer Conference Call Participants Shagun Singh - RBC Steven Lichtman - Oppenheimer & Company Vijay Kumar - Evercore ISI Travis Steed - Bank of Ame ...

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Q2 2022 Earnings Conference Call August 2, 2022 8:30 AM ET Company Participants Keri Mattox - Senior Vice President, Chief Communications and Administration Officer Bryan Hanson - Chairman, President, and Chief Executive Officer Suky Upadhyay - Executive Vice President and Chief Financial Officer Ivan Tornos - Chief Operating Officer Conference Call Participants Rick Wise - Stifel Nicolaus Pito Chickering - Deutsche Bank Larry Biegelsen - Wells Fargo Josh Jennings - C ...

Financial Performance - Net sales increased by 1.0% and 2.4% for the three and six-month periods ended June 30, 2022, compared to the same prior year periods [121]. - Net earnings were $153.7 million and $167.9 million for the three and six-month periods ended June 30, 2022, respectively, compared to $141.9 million and $340.0 million in the same prior year periods [121]. - The U.S. net sales growth was 1.3% and 3.5% for the three and six-month periods ended June 30, 2022, driven by recovery in surgical procedures [131]. - International net sales grew by 0.7% and 1.0% during the three and six-month periods ended June 30, 2022, despite a negative impact of 11.5% and 9.2% from foreign currency exchange rates [131]. - Knees product category net sales increased by 5.9% and 6.9% for the three and six-month periods ended June 30, 2022, respectively [132]. - Hips product category net sales grew by 2.7% and 1.8% for the three and six-month periods ended June 30, 2022, respectively [132]. Expenses and Costs - Research and development expenses decreased as a percentage of net sales to 5.6% for the three-month period ended June 30, 2022, compared to 9.4% in the prior year [133]. - Cost of products sold as a percentage of net sales increased to 28.7% for the three-month period ended June 30, 2022, due to inflationary pressures [133]. - Selling, general and administrative (SG&A) expenses decreased slightly in the three-month period ended June 30, 2022, and increased in the six-month period ended June 30, 2022, primarily due to higher litigation-related charges of $35.7 million compared to $10.7 million in the prior year [137]. - The company recognized restructuring expenses of $57.0 million and $100.9 million in the three and six-month periods ended June 30, 2022, respectively, primarily related to employee termination benefits and consulting expenses [140]. Cash Flow and Liquidity - Cash flows provided by operating activities from continuing operations were $661.2 million in the six-month period ended June 30, 2022, compared to $642.5 million in the same prior year period, driven by lower investments in inventory [148]. - Cash flows used in investing activities from continuing operations were $324.3 million in the six-month period ended June 30, 2022, reflecting ongoing investments in product portfolio and acquisitions [149]. - As of June 30, 2022, the company had $386.4 million in cash and cash equivalents and $1.0 billion available to borrow under its 2021 364-Day Credit Agreement [146]. Tax and Other Income - The effective tax rate (ETR) for the three and six-month periods ended June 30, 2022, was 22.8 percent and 24.5 percent, respectively, compared to 18.7 percent and 13.9 percent in the prior year periods, primarily due to losses on investments [144]. - The company incurred a loss of $42.6 million in other (expense) income, net for the three-month period ended June 30, 2022, primarily due to a $33.3 million loss on its investment in ZimVie [142]. Restructuring Plans - The 2021 Restructuring Plan is expected to incur total pre-tax restructuring charges of approximately $230 million, with $100 million incurred through June 30, 2022, aiming to reduce gross annual pre-tax operating expenses by approximately $210 million by the end of 2024 [158]. - The 2019 Restructuring Plan is projected to incur total pre-tax restructuring charges of approximately $335 million to $385 million, with $230 million incurred through June 30, 2022, targeting a reduction in gross annual pre-tax operating expenses of approximately $180 million to $280 million by the end of 2023 [158]. Legal and Regulatory Matters - Total liabilities for litigation matters were estimated at $395.8 million as of June 30, 2022, with potential future payments related to development and distribution contracts ranging from $0 to approximately $370 million [161]. - The IRS has proposed adjustments reallocating profits for years 2010 through 2015, which may significantly impact future operating cash flows [159]. - The company is involved in various litigation matters that may result in charges exceeding current estimates upon resolution [161]. Operational Challenges - The company anticipates that COVID-19 and staffing shortages will continue to negatively affect net sales, but to a lesser degree than in 2021 [122]. - The company is facing uncertainties related to the successful execution of its restructuring plans and the potential impact of the COVID-19 pandemic on operations and cash flows [165]. - The company has not recognized estimated future payments related to contractual arrangements on its balance sheets due to uncertainty regarding timing and occurrence [161]. - The company cautions that forward-looking statements are subject to significant risks and uncertainties that could cause actual results to differ materially [164]. - The company emphasizes the importance of attracting and retaining skilled employees to support its business operations [165].