Zimmer Biomet Announces Second Quarter 2021 Financial Results

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- Second quarter net sales of $2.027 billion increased 65.3%, 60.7% on a constant currency(1) basis

- Second quarter diluted earnings per share were $0.67; adjusted(1) diluted earnings per share were $1.90

- Company updates 2021 financial guidance, narrowing range for full year outlook

WARSAW, Ind., Aug. 3, 2021 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today reported financial results for the quarter ended June 30, 2021. The Company reported second quarter net sales of $2.027 billion, an increase of 65.3% over the prior year period, and an increase of 60.7% on a constant currency basis. Second quarter 2021 net sales increased 1.9% when compared to the pre-pandemic second quarter 2019, and were flat on a constant currency basis. Net earnings for the second quarter of 2021 were $141.9 million, or $400.5 million on an adjusted basis.

Diluted earnings per share were $0.67 for the second quarter. Adjusted diluted earnings per share were $1.90 for the second quarter.

"Our performance in the second quarter improved meaningfully from the first quarter 2021 across all regions and product categories as recovery from the global pandemic continued to take hold. While we anticipate some ongoing COVID-19 pressure, we expect continued improvement in procedure volume recovery through the second half of 2021," said Bryan Hanson, Chairman, President and CEO of Zimmer Biomet. "Against this backdrop, Zimmer Biomet has continued to execute, investing in our business, expanding our portfolio and developing and launching innovative products designed to improve mobility and health. This execution enables ZB to build and deliver value for our customers and shareholders and to move our mission forward for the patients we ultimately serve."

Please see the attached schedules accompanying this press release for additional details on performance in the quarter, including sales by Zimmer Biomet's three geographies and five product categories.

_________________________
1 Reconciliations of these measures to the corresponding U.S. generally accepted accounting principles measures are included in this press release.

Recent Highlights

Aligned with the ongoing transformation of Zimmer Biomet's business, key recent highlights include:

  • Publication of the Zimmer Biomet Sustainability Report, aligned with Sustainability Accounting Standards Board (SASB) standards.

  • Receipt of key awards for Zimmer Biomet's portfolio including the ROSA Knee system for Best Technology Solution in Orthopedics by the Medtech Breakthrough Awards and Orthopaedic Product Innovation of the Year by the Healthcare Asia Medtech Awards. The TetherTM Vertebral Body Tethering System, a first-in-class treatment for children with scoliosis, was also Silver Winner in the 2021 Edison Best New Product Awards in the Advanced Surgical Instruments category.

  • Key additions to the Zimmer Biomet Leadership Team, including the appointment of Wilfred van Zuilen as President of Europe, Middle East and Africa (EMEA) and Nitin Goyal, M.D. to the newly created role of Chief Science, Technology and Innovation Officer.

Geographic and Product Category Sales

The following sales tables provide results by geography and product category for the three and six-month periods ended June 30, 2021, as well as the percentage change compared to the prior year period, on both a reported basis and a constant currency basis.

NET SALES - THREE MONTHS ENDED JUNE 30, 2021

(in millions, unaudited)





















Constant



Net






Currency



Sales


% Change



% Change


Geographic Results











Americas

$

1,239.6



69.0

%



68.3

%

EMEA


429.8



96.4




80.5


Asia Pacific


357.5



30.6




24.4


Total

$

2,026.9



65.3

%



60.7

%

Product Categories











Knees











Americas

$

400.3



81.4

%



80.6

%

EMEA


148.6



127.2




109.6


Asia Pacific


116.7



31.2




23.8


Total


665.6



77.5




72.2


Hips











Americas


258.1



51.3




50.4


EMEA


122.5



72.8




59.0


Asia Pacific


94.0



6.6




3.9


Total


474.6



44.0




39.9


S.E.T. *


462.1



57.9




53.0


Dental & Spine


263.5



73.1




69.4


Other


161.1



110.9




105.9


Total

$

2,026.9



65.3

%



60.7

%























* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic

NET SALES - SIX MONTHS ENDED JUNE 30, 2021

(in millions, unaudited)



















Constant



Net





Currency



Sales


% Change


% Change


Geographic Results










Americas

$

2,354.6



28.3

%


27.9

%

EMEA


814.0



32.0



21.9


Asia Pacific


705.7



26.4



19.9


Total

$

3,874.3



28.7

%


25.2

%

Product Categories










Knees










Americas

$

759.1



26.8

%


26.3

%

EMEA


279.9



28.4



19.0


Asia Pacific


240.9



29.0



21.0


Total


1,279.9



27.5



23.7


Hips










Americas


493.3



22.4



21.9


EMEA


230.2



26.3



17.1


Asia Pacific


198.1



12.0



7.6


Total


921.6



20.9



17.4


S.E.T. *


879.7



30.6



27.1


Dental & Spine


509.5



37.1



34.1


Other


283.6



42.9



39.2


Total

$

3,874.3



28.7

%


25.2

%





















* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic

Financial Guidance

The Company is updating its full-year 2021 financial guidance to narrow its previous projected ranges for revenue growth and adjusted diluted EPS:

Projected Year Ending December 31, 2021


Previous
Guidance


Updated
Guidance

2021 reported revenue growth

14.0% - 17.0%


14.5% - 16.5%

Foreign Currency Exchange Impact

1.5%


1.5%

Adjusted Operating Profit Margin(1)

26.5% - 27.5%


26.5% - 27.0%

Adjusted Tax Rate(1)

16.0% - 16.5%


16.0% - 16.5%

Adjusted Diluted EPS(1)

$7.60 - $8.00


$7.65 - $7.95

(1)

These measures are non-GAAP financial measures for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. See "Forward-Looking Non-GAAP Financial Measures."

Conference Call

The Company will conduct its second quarter investor conference call today, August 3, 2021, at 8:30 a.m. ET. The audio webcast can be accessed via Zimmer Biomet's Investor Relations website at https://investor.zimmerbiomet.com. It will be archived for replay following the conference call.

About the Company

Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation.

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow Zimmer Biomet on Twitter at www.twitter.com/zimmerbiomet.

Website Information

We routinely post important information for investors on our website, www.zimmerbiomet.com, in the "Investor Relations" section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website or any other website referenced herein is not incorporated by reference into, and is not a part of, this document.

Note on Non-GAAP Financial Measures

This press release includes non-GAAP financial measures that differ from financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP.

Sales change information for the three and six-month periods ended June 30, 2021 is presented on a GAAP (reported) basis and on a constant currency basis. Constant currency percentage changes exclude the effects of foreign currency exchange rates. They are calculated by translating current and prior-period sales at the same predetermined exchange rate. The translated results are then used to determine year-over-year percentage increases or decreases.

Net earnings and diluted earnings per share for the three and six-month periods ended June 30, 2021 are presented on a GAAP (reported) basis and on an adjusted basis. Adjusted earnings and adjusted diluted earnings per share exclude the effects of certain items, which are detailed in the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures presented later in this press release.

Free cash flow is an additional non-GAAP measure that is presented in this press release. Free cash flow is computed by deducting additions to instruments and other property, plant and equipment from net cash provided by operating activities.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release. This press release also contains supplemental reconciliations of additional non-GAAP financial measures that the Company presents in other contexts. These additional non-GAAP financial measures are computed from the most directly comparable GAAP financial measure as indicated in the applicable reconciliation.

Management uses non-GAAP financial measures internally to evaluate the performance of the business. Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the Company. Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income but that do not impact the fundamentals of our operations. The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures. In addition, constant currency sales changes, adjusted operating profit, adjusted diluted earnings per share and free cash flow are used as performance metrics in our incentive compensation programs.

Forward-Looking Non-GAAP Financial Measures

This press release also includes certain forward-looking non-GAAP financial measures for the year ending December 31, 2021. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, we exclude the impact of certain charges related to initial compliance with the European Union Medical Device Regulation; restructuring and other cost reduction initiatives; quality remediation; acquisition, integration, divestiture and related; and certain legal and tax matters. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts. For example, the timing of certain transactions is difficult to predict because management's plans may change. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding sales and earnings guidance, the impact of the COVID-19 pandemic on our business, including any continued recovery, and any statements about our forecasts, expectations, plans, intentions, strategies or prospects. All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements. Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements. These risks, uncertainties and changes in circumstances include, but are not limited to: the effects of the COVID-19 global pandemic and other adverse public health developments on the global economy, our business and operations and the business and operations of our suppliers and customers, including the deferral of elective surgical procedures and our ability to collect accounts receivable; the failure of vaccine rollouts and other strategies to mitigate or reverse the impacts of the COVID-19 pandemic; the failure of elective surgical procedures to recover at the levels or on the timeline anticipated; the risks and uncertainties related to our ability to successfully execute our restructuring plans; our ability to attract, retain and develop the highly skilled employees we need to support our business; the possibility that the anticipated synergies and other benefits from mergers and acquisitions will not be realized, or will not be realized within the expected time periods; the risks and uncertainties related to our ability to successfully integrate the operations, products, employees and distributors of acquired companies; the effect of the potential disruption of management's attention from ongoing business operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with customers, suppliers and lenders and on our operating results and businesses generally; the risks and uncertainties associated with the proposed spin-off of our Spine and Dental businesses, including, without limitation, the significant expenses, time and efforts related to implementing such transaction, the ability to complete the transaction on our expected timeline or at all, the tax-free nature of the transaction, possible disruptions in our relationships with customers, suppliers and other business partners, and the possibility that the anticipated benefits and synergies of the transaction, strategic and competitive advantages of each company, and future growth and other opportunities for each company will not be realized within the expected time periods or at all; the success of our quality and operational excellence initiatives, including ongoing quality remediation efforts at our Warsaw North Campus facility; the ability to remediate matters identified in inspectional observations or warning letters issued by the U.S. Food and Drug Administration (FDA), while continuing to satisfy the demand for our products; the impact of substantial indebtedness on our ability to service our debt obligations and/or refinance amounts outstanding under our debt obligations at maturity on terms favorable to us, or at all; the ability to retain the independent agents and distributors who market our products; dependence on a limited number of suppliers for key raw materials and outsourced activities; challenges relating to changes in and compliance with governmental laws and regulations affecting our U.S. and international businesses, including regulations of the FDA and foreign government regulators, such as more stringent requirements for regulatory clearance of products; the outcome of government investigations; competition; pricing pressures; changes in customer demand for our products and services caused by demographic changes or other factors; the impact of healthcare reform measures; reductions in reimbursement levels by third-party payors and cost containment efforts sponsored by government agencies, legislative bodies, the private sector and healthcare purchasing organizations, including the volume-based procurement process in China; dependence on new product development, technological advances and innovation; shifts in the product category or regional sales mix of our products and services; supply and prices of raw materials and products; control of costs and expenses; the ability to obtain and maintain adequate intellectual property protection; breaches or failures of our information technology systems or products, including by cyberattack, unauthorized access or theft; the ability to form and implement alliances; changes in tax obligations arising from tax reform measures, including European Union rules on state aid, or examinations by tax authorities; product liability, intellectual property and commercial litigation losses; changes in general industry and market conditions, including domestic and international growth rates; changes in general domestic and international economic conditions, including interest rate and currency exchange rate fluctuations; and the impact of the ongoing financial and political uncertainty on countries in the Euro zone on the ability to collect accounts receivable in affected countries. A further list and description of these risks and uncertainties and other factors can be found in our Annual Report on Form 10-K for the year ended December 31, 2020, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and our subsequent filings with the Securities and Exchange Commission (SEC). Copies of these filings are available online at www.sec.gov, www.zimmerbiomet.com or on request from us. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of this press release are cautioned not to rely on these forward-looking statements since there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary note is applicable to all forward-looking statements contained in this press release.

Media

Investors

Meredith Weissman

Keri Mattox

(703) 346-3127

(215) 275-2431

meredith.weissman@zimmerbiomet.com

keri.mattox@zimmerbiomet.com




Ezgi Yagci


(617) 549-2443


ezgi.yagci@zimmerbiomet.com



ZIMMER BIOMET HOLDINGS, INC.


CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS


FOR THE THREE MONTHS ENDED JUNE 30, 2021 and 2020


(in millions, except per share amounts, unaudited)











2021



2020


Net Sales

$

2,026.9



$

1,226.1


Cost of products sold, excluding intangible asset amortization


581.6




424.5


Intangible asset amortization


154.6




147.7


Research and development


180.5




87.7


Selling, general and administrative


817.4




665.0


Goodwill and intangible asset impairment


16.3




33.0


Restructuring and other cost reduction initiatives


19.6




28.0


Quality remediation


11.0




9.7


Acquisition, integration, divestiture and related


25.4




2.2


Operating expenses


1,806.4




1,397.8


Operating Profit (Loss)


220.5




(171.7)


Other income, net


8.1




3.8


Interest expense, net


(54.7)




(54.0)


Earnings (loss) before income taxes


173.9




(221.9)


Provision (benefit) for income taxes


31.4




(13.7)


Net Earnings (Loss)


142.5




(208.2)


Less: Net earnings (loss) attributable to noncontrolling interest


0.6




(1.6)


Net Earnings (Loss) of Zimmer Biomet Holdings, Inc.

$

141.9



$

(206.6)


Earnings (Loss) Per Common Share








Basic

$

0.68



$

(1.00)


Diluted

$

0.67



$

(1.00)


Weighted Average Common Shares Outstanding








Basic


208.6




206.8


Diluted


210.7




206.8
















ZIMMER BIOMET HOLDINGS, INC.


CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS


FOR THE SIX MONTHS ENDED JUNE 30, 2021 and 2020


(in millions, except per share amounts, unaudited)











2021



2020


Net Sales

$

3,874.3



$

3,009.9


Cost of products sold, excluding intangible asset amortization


1,098.0




911.6


Intangible asset amortization


310.1




295.3


Research and development


274.9




186.1


Selling, general and administrative


1,587.5




1,493.9


Goodwill and intangible asset impairment


16.3




645.0


Restructuring and other cost reduction initiatives


41.4




73.0


Quality remediation


21.2




26.1


Acquisition, integration, divestiture and related


38.8




6.6


Operating expenses


3,388.2




3,637.6


Operating Profit (Loss)


486.1




(627.7)


Other income, net


15.4




6.8


Interest expense, net


(107.0)




(104.9)


Earnings (loss) before income taxes


394.5




(725.8)


Provision (benefit) for income taxes


54.3




(8.5)


Net Earnings (Loss)


340.2




(717.3)


Less: Net earnings (loss) attributable to noncontrolling interest


0.2




(2.2)


Net Earnings (Loss) of Zimmer Biomet Holdings, Inc.

$

340.0



$

(715.1)


Earnings (Loss) Per Common Share








Basic

$

1.63



$

(3.46)


Diluted

$

1.62



$

(3.46)


Weighted Average Common Shares Outstanding








Basic


208.3




206.6


Diluted


210.4




206.6














ZIMMER BIOMET HOLDINGS, INC.


CONDENSED CONSOLIDATED BALANCE SHEETS


(in millions, unaudited)






June 30,



December 31,




2021



2020


Assets









Cash and cash equivalents


$

1,042.4



$

802.1


Receivables, net



1,420.4




1,452.7


Inventories



2,533.0




2,450.7


Other current assets



361.0




377.8


Total current assets



5,356.8




5,083.3


Property, plant and equipment, net



2,005.2




2,047.7


Goodwill



9,247.6




9,261.8


Intangible assets, net



6,642.7




7,055.5


Other assets



970.9




969.4


Total Assets


$

24,223.2



$

24,417.7


Liabilities and Stockholders' Equity









Current liabilities


$

1,878.5



$

2,056.9


Current portion of long-term debt



1,050.0




500.0


Other long-term liabilities



1,908.9




2,034.9


Long-term debt



6,802.5




7,626.5


Stockholders' equity



12,583.3




12,199.4


Total Liabilities and Stockholders' Equity


$

24,223.2



$

24,417.7


ZIMMER BIOMET HOLDINGS, INC.


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


FOR THE SIX MONTHS ENDED JUNE 30, 2021 and 2020


(in millions, unaudited)













2021



2020


Cash flows provided by (used in) operating activities









Net earnings (loss)


$

340.2



$

(717.3)


Depreciation and amortization



535.2




508.7


Share-based compensation



46.4




38.3


Goodwill and intangible asset impairment



16.3




645.0


Changes in operating assets and liabilities, net of acquired assets and liabilities









Income taxes



(37.3)




(46.1)


Receivables



5.3




272.7


Inventories



(94.4)




(122.6)


Accounts payable and accrued expenses



(56.3)




(233.9)


Other assets and liabilities



(55.0)




53.3


Net cash provided by operating activities



700.4




398.1


Cash flows provided by (used in) investing activities









Additions to instruments



(150.5)




(159.3)


Additions to other property, plant and equipment



(54.7)




(59.2)


Net investment hedge settlements



(9.6)




26.8


Investments in other assets



(17.4)




(14.8)


Net cash used in investing activities



(232.2)




(206.5)


Cash flows provided by (used in) financing activities









Proceeds from senior notes



-




1,497.1


Redemption of senior notes



(200.0)




(1,500.0)


Dividends paid to stockholders



(99.8)




(99.1)


Proceeds from employee stock compensation plans



91.5




61.7


Net cash flows from unremitted collections from factoring programs



-




(19.6)


Business combination contingent consideration payments



(6.5)




(7.5)


Debt issuance costs



-




(19.4)


Other financing activities



(9.3)




(6.1)


Net cash used in financing activities



(224.1)




(92.9)


Effect of exchange rates on cash and cash equivalents



(3.8)




(3.2)


Increase in cash and cash equivalents



240.3




95.5


Cash and cash equivalents, beginning of period



802.1




617.9


Cash and cash equivalents, end of period


$

1,042.4



$

713.4




















ZIMMER BIOMET HOLDINGS, INC.

NET SALES BY GEOGRAPHY

FOR THE THREE MONTHS ENDED JUNE 30, 2021 and 2020

(in millions, unaudited)




Three Months Ended
June 30,
















2021


2020


% Inc


Volume
/ Mix


Price


Foreign
Exchange


Americas


$

1,239.6


$

733.7



69.0

%


70.0

%


(1.7)

%


0.7

%

EMEA



429.8



218.7



96.4



80.5



-



15.9


Asia Pacific



357.5



273.7



30.6



26.3



(1.9)



6.2


Total


$

2,026.9


$

1,226.1



65.3

%


62.2

%


(1.5)

%


4.6

%

ZIMMER BIOMET HOLDINGS, INC.

NET SALES BY PRODUCT CATEGORY

FOR THE THREE MONTHS ENDED JUNE 30, 2021 and 2020

(in millions, unaudited)




Three Months Ended
June 30,
















2021


2020


% Inc


Volume
/ Mix


Price


Foreign
Exchange


Knees


$

665.6


$

375.0



77.5

%


74.3

%


(2.1)

%


5.3

%

Hips



474.6



329.7



44.0



42.4



(2.5)



4.1


S.E.T.



462.1



292.7



57.9



52.3



0.7



4.9


Dental & Spine



263.5



152.3



73.1



70.3



(0.9)



3.7


Other



161.1



76.4



110.9



109.3



(3.4)



5.0


Total


$

2,026.9


$

1,226.1



65.3

%


62.2

%


(1.5)

%


4.6

%

ZIMMER BIOMET HOLDINGS, INC.

NET SALES BY GEOGRAPHY

FOR THE SIX MONTHS ENDED JUNE 30, 2021 and 2020

(in millions, unaudited)




Six Months Ended
June 30,
















2021


2020


% Inc


Volume
/ Mix


Price


Foreign
Exchange


Americas


$

2,354.6


$

1,835.0



28.3

%


30.0

%


(2.1)

%


0.4

%

EMEA



814.0



616.8



32.0



22.1



(0.2)



10.1


Asia Pacific



705.7



558.1



26.4



21.3



(1.4)



6.5


Total


$

3,874.3


$

3,009.9



28.7

%


26.8

%


(1.6)

%


3.5

%

ZIMMER BIOMET HOLDINGS, INC.

NET SALES BY PRODUCT CATEGORY

FOR THE SIX MONTHS ENDED JUNE 30, 2021 and 2020

(in millions, unaudited)




Six Months Ended
June 30,
















2021


2020


% Inc


Volume
/ Mix


Price


Foreign
Exchange


Knees


$

1,279.9


$

1,003.7



27.5

%


25.9

%


(2.2)

%


3.8

%

Hips



921.6



762.3



20.9



20.0



(2.6)



3.5


S.E.T.



879.7



673.6



30.6



26.8



0.3



3.5


Dental & Spine



509.5



371.8



37.1



35.1



(1.0)



3.0


Other



283.6



198.5



42.9



41.1



(1.9)



3.7


Total


$

3,874.3


$

3,009.9



28.7

%


26.8

%


(1.6)

%


3.5

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED NET SALES % CHANGE TO

CONSTANT CURRENCY % CHANGE

(unaudited)




For the Three Months Ended



June 30, 2021






Foreign


Constant






Exchange


Currency



% Change


Impact


% Change


Geographic Results










Americas


69.0

%


0.7

%


68.3

%

EMEA


96.4



15.9



80.5


Asia Pacific


30.6



6.2



24.4


Total


65.3

%


4.6

%


60.7

%

Product Categories










Knees










Americas


81.4

%


0.8

%


80.6

%

EMEA


127.2



17.6



109.6


Asia Pacific


31.2



7.4



23.8


Total


77.5



5.3



72.2


Hips










Americas


51.3



0.9



50.4


EMEA


72.8



13.8



59.0


Asia Pacific


6.6



2.7



3.9


Total


44.0



4.1



39.9


S.E.T


57.9



4.9



53.0


Dental & Spine


73.1



3.7



69.4


Other


110.9



5.0



105.9


Total


65.3

%


4.6

%


60.7

%



ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED NET SALES % CHANGE TO

CONSTANT CURRENCY % CHANGE

(unaudited)













For the Six Months Ended



June 30, 2021






Foreign


Constant






Exchange


Currency



% Change


Impact


% Change


Geographic Results










Americas


28.3

%


0.4

%


27.9

%

EMEA


32.0



10.1



21.9


Asia Pacific


26.4



6.5



19.9


Total


28.7

%


3.5

%


25.2

%

Product Categories










Knees










Americas


26.8

%


0.5

%


26.3

%

EMEA


28.4



9.4



19.0


Asia Pacific


29.0



8.0



21.0


Total


27.5



3.8



23.7


Hips










Americas


22.4



0.5



21.9


EMEA


26.3



9.2



17.1


Asia Pacific


12.0



4.4



7.6


Total


20.9



3.5



17.4


S.E.T


30.6



3.5



27.1


Dental, Spine & CMFT


37.1



3.0



34.1


Other


42.9



3.7



39.2


Total


28.7

%


3.5

%


25.2

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED NET SALES % CHANGE TO

CONSTANT CURRENCY % CHANGE

(unaudited)


















For the Three Months Ended



June 30,











Foreign


Constant



Net Sales




Exchange


Currency



2021


2019

% Change


Impact


% Change


Geographic Results















Americas

$

1,239.6


$

1,214.3


2.1

%


0.2

%


1.9

%

EMEA


429.8



438.0


(1.9)



5.4



(7.3)


Asia Pacific


357.5



336.3


6.3



3.5



2.8


Total

$

2,026.9


$

1,988.6


1.9

%


1.9

%


-

%

Product Categories















Knees

$

665.6


$

696.7


(4.5)



1.8



(6.3)


Hips


474.6



478.5


(0.8)



2.0



(2.8)


S.E.T


462.1



408.7


13.1



2.3



10.8


Dental & Spine


263.5



257.6


2.3



1.5



0.8


Other


161.1



147.1


9.5



2.0



7.5


Total

$

2,026.9


$

1,988.6


1.9

%


1.9

%


-

%

ZIMMER BIOMET HOLDINGS, INC.


RECONCILIATION OF REPORTED TO ADJUSTED RESULTS


FOR THE THREE MONTHS ENDED JUNE 30, 2021 and 2020


(in millions, except per share amounts, unaudited)




































































































FOR THE THREE MONTHS ENDED JUNE 30, 2021




Cost of products sold, excluding intangible asset amortization



Intangible asset amortization



Research and development



Selling, general and administrative



Goodwill and intangible asset impairment



Restructuring and other cost reduction initiatives



Quality remediation



Acquisition, integration, divestiture and related



Other income, net



Provision (benefit) for income taxes



Net Earnings (Loss) of Zimmer Biomet Holdings, Inc.



Diluted earnings (loss) per common share


As Reported


$

581.6



$

154.6



$

180.5



$

817.4



$

16.3



$

19.6



$

11.0



$

25.4



$

8.1



$

31.4



$

141.9



$

0.67


Inventory and manufacturing-related charges(1)



(7.9)




-




-




-




-




-




-




-




-




4.6




3.3




0.02


Intangible asset amortization(2)



-




(154.6)




-




-




-




-




-




-




-




31.4




123.2




0.58


Goodwill and intangible asset impairment(3)



-




-




-




-




(16.3)




-




-




-




-




2.1




14.2




0.07


Restructuring and other cost reduction initiatives(4)



(0.1)




-




-




-




-




(19.6)




-




-




-




4.4




15.3




0.07


Quality remediation(5)



-




-




-




-




-




-




(11.0)




-




-




2.5




8.5




0.04


Acquisition, integration, divestiture and related(6)



-




-




-




-




-




-




-




(25.4)




-




5.3




20.1




0.10


Litigation(7)



-




-




-




(3.6)




-




-




-




-




-




0.4




3.2




0.02


European Union Medical Device Regulation(8)



-




-




(10.6)




-




-




-




-




-




-




2.4




8.2




0.04


Certain R&D agreements(9)



-




-




(65.0)




-




-




-




-




-




-




14.6




50.4




0.24


Other charges(10)



-




-




-




4.5




-




-




-




-




(3.0)




(2.1)




(5.4)




(0.03)


Swiss tax reform(11)



-




-




-




-




-




-




-




-




-




(15.4)




15.4




0.07


Other certain tax adjustments(12)



-




-




-




-




-




-




-




-




-




(2.2)




2.2




0.01


As Adjusted


$

573.6



$

-



$

104.9



$

818.3



$

-



$

-



$

-



$

-



$

5.1



$

79.4



$

400.5



$

1.90


FOR THE THREE MONTHS ENDED JUNE 30, 2020




Cost of products sold, excluding intangible asset amortization



Intangible asset amortization



Research and development



Selling, general and administrative



Goodwill and intangible asset impairment



Restructuring and other cost reduction initiatives



Quality remediation



Acquisition, integration, divestiture and related



Other income, net



Provision (benefit) for income taxes



Net Earnings (Loss) of Zimmer Biomet Holdings, Inc.



Diluted earnings (loss) per common share


As Reported


$

424.5



$

147.7



$

87.7



$

665.0



$

33.0



$

28.0



$

9.7



$

2.2



$

3.8



$

(13.7)



$

(206.6)



$

(1.00)


Inventory and manufacturing-related charges(1)



(1.4)




-




-




-




-




-




-




-




-




3.7




(2.3)




(0.01)


Intangible asset amortization(2)



-




(147.7)




-




-




-




-




-




-




-




8.1




139.6




0.68


Goodwill and intangible asset impairment(3)



-




-




-




-




(33.0)




-