Zimmer Biomet Holdings Inc at Barclays Global Healthcare Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Matt Miksic - Barclays - Analyst : <_ALACRA_META_ABSTRACT>So I wanted to maybe start with a comment on just the market because that's something I think you've been vocal about where we are in this post pandemic, elevated but maybe settling volume environment in orthopedics. What's been your message, how we should think about this year versus last year and maybe the next couple of years in terms of just volume growth and demand and opportunity?

Question: Matt Miksic - Barclays - Analyst : Yeah, that makes a lot of sense. We had a clinician panel earlier in the week and talking about the wave of older patients that are finally really starting to show up. And in addition to that demographic wave, maybe talk a little bit about, maybe, this gets to your point about patients willing to have the procedure; also maybe surgeons willing to suggest the procedure for younger patients.

Question: Matt Miksic - Barclays - Analyst : Right. And it's been ASC build out, I think in the very, very early days, there was a fear that ASCs would pick up and they would take all these cases from the hospital. But from what we see, and you see much better than we do, but is that the ASC is built out and it's basically just expanded capacity bandwidth as well.

Question: Matt Miksic - Barclays - Analyst : Okay.

Question: Matt Miksic - Barclays - Analyst : And then the last thing I'll just ask about, comment on about the market is that this is one of the folks get a cardiac procedure when they need a cardiac procedure, but this is a patient expectation, patient activity-driven procedure. Like I want to have a life that involves golf or something and, therefore, I need to do this procedure. Maybe talk about how activity levels, I don't know, health and wellness is just generally driven higher demand for folks being able to walk and do things into their 70s, 80s, and 90s.

Question: Matt Miksic - Barclays - Analyst : Okay. So with that in mind, you're taking your growth up. You put your LRP out, you're shooting higher for things like share and overall portfolio growth. We can talk about the additions of the portfolio in a second. But what parts of the core reconstructive business, the key hip and knee business, you feel like you've been executing well at? And which parts are you leaning into to hit some of the higher growth rates that you talked about in your LRP? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 13, 2025 / 1:30PM, ZBH.N - Zimmer Biomet Holdings Inc at Barclays Global Healthcare Conference

Question: Matt Miksic - Barclays - Analyst : Okay, so Hips, prepared to lean back into share with the portfolio changes. Maybe talk about some of the catalysts in Knees, there's [Press Fit]. But then also, even going back to what we just talked about with the market, more younger patients, more revisions. How is, like, your revision system and the addition to the portfolio in that category position you to do better in Knees.

Question: Matt Miksic - Barclays - Analyst : That's a great answer. Talk about the portfolio for a minute. Exciting news and acquisition announcement on Paragon 28. As you said, teens grow or mid-teens grower. Maybe talk a little bit about where you are in the integration process. I mean, I have to ask the question, I think I may have asked it on the call, is the musculoskeletal sales reps, sales force integrations have been challenging. I'd say, Zimmer Biomet for putting aside some of the operational problems that happened (technical difficulty) I think went extremely well. Maybe talk a little bit about how you plan to bring that force on and keep them running on all cylinders.

Question: Matt Miksic - Barclays - Analyst : Okay. Yeah, and that is a clear difference between your core -- some of your core markets and Foot and Ankle. It's just the volume of implants, the types of procedures, and like the intensity of new product launch and new product introduction. So I can see the value of bringing on an engine that's demonstrated its ability.

Question: Matt Miksic - Barclays - Analyst : So maybe pivoting a little bit into margins. So maybe talk about, if you could, like puts and takes to some of the investments that you're making, including Paragon and then some of the leverage that you expect to see coming out of this year. And going forward, both on the gross margin and the operating line.

Question: Matt Miksic - Barclays - Analyst : That's great. And getting through the integration, the break even and then accretion of Paragon is one thing on the core US business. Maybe if you could talk a little bit about the opportunities you see to expand this globally, given your global footprint.

Question: Matt Miksic - Barclays - Analyst : So similar maybe untapped opportunity to bring this overseas?

Question: Matt Miksic - Barclays - Analyst : Right. It's like a stage two opportunity, maybe --

Question: Matt Miksic - Barclays - Analyst : Got it. And then you mentioned -- I have to ask about the rest of the portfolio. You made some changes since, not under your watch necessarily, but there have been changes in the portfolio. Any further changes on the -- let's talk about the positive side. You just announced the deal, you're going to be in the middle of integrating the deal. So one question is, when should we expect you to be out there again and active acquisitively? But as importantly, how do you feel about the rest of the portfolio?

Question: Matt Miksic - Barclays - Analyst : That's great. So we're coming up on time with the 40 minutes -- 40 seconds or so that we have remaining. Ivan, what would you like to wrap this up or leave with investors that you think is important?

Question: Matt Miksic - Barclays - Analyst : Fair enough. Well, thanks so much.

Question: Matt Miksic - Barclays - Analyst : Thanks, I'm really pleased to have you.