Zimmer Biomet Holdings Inc (ZBH) 2023 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Zimmer Biomet Second Quarter 2023 Earnings Conference Call. (Operator Instructions)

早上好，女士們、先生們，歡迎參加 Zimmer Biomet 2023 年第二季度收益電話會議。 （操作員說明）

I would now like to turn the conference over to Keri Mattox, Chief Communications and Administration Officer. Please go ahead.

我現在想將會議交給首席通信和行政官 Keri Mattox。請繼續。

Thank you, operator, and good morning, everyone. Welcome to Zimmer Biomet's Second Quarter 2023 Earnings Conference Call. Joining me today are Bryan Hanson, our Chairman, President and CEO; and EVP and CFO, Suky Upadhyay; and COO, Ivan Tornos. Before we get started, I'd like to remind you that our comments during this call will include forward-looking statements. Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties.

謝謝接線員，大家早上好。歡迎參加 Zimmer Biomet 2023 年第二季度收益電話會議。今天加入我的是我們的董事長、總裁兼首席執行官 Bryan Hanson；執行副總裁兼首席財務官 Suky Upadhyay；首席運營官伊万·托諾斯 (Ivan Tornos)。在我們開始之前，我想提醒您，我們在本次電話會議中的評論將包括前瞻性陳述。由於各種風險和不確定性，實際結果可能與前瞻性陳述所示的結果存在重大差異。

Please note, we assume no obligation to update these forward-looking statements even if actual results or future expectations change materially. Please refer to our SEC filings for a detailed discussion of these risks and uncertainties and in addition to the inherent limitations of such forward-looking statements.

請注意，即使實際結果或未來預期發生重大變化，我們也不承擔更新這些前瞻性陳述的義務。請參閱我們向 SEC 提交的文件，詳細討論這些風險和不確定性以及此類前瞻性陳述的固有局限性。

Additionally, the discussions on this call will include certain non-GAAP financial measures. Reconciliation of these measures to the most directly comparable GAAP financial measures is included within our Q2 earnings release, which can be found on our website, zimmerbiomet.com.

此外，本次電話會議的討論將包括某些非公認會計準則財務措施。這些指標與最直接可比的 GAAP 財務指標的對賬包含在我們第二季度的收益發布中，您可以在我們的網站 zimmerbiomet.com 上找到該發布。

With that, I'll turn the call over to Bryan. Bryan?

這樣，我就把電話轉給布萊恩。布萊恩？

All right. Thanks, Keri, and thanks to everyone for joining us on the call this morning. It's always good to be with you. But I would say it's even a little better and certainly more fun when we have great performance in the quarter. So we're pretty happy about the results that we get to discuss today, and I can tell you, we're looking forward to the dialogue.

好的。謝謝 Keri，也感謝大家今天早上加入我們的電話會議。和你在一起總是好的。但我想說，當我們在本季度取得出色的表現時，情況會更好，當然也更有趣。因此，我們對今天討論的結果感到非常高興，我可以告訴你，我們期待著對話。

And I'll start things up, as we normally do, I'll talk about our Q2 performance and the key drivers inside of the quarter. But I think also really important is to talk about the key drivers that we see continuing to move this business forward.

我將像往常一樣開始討論我們第二季度的業績以及本季度內的關鍵驅動因素。但我認為同樣重要的是談論我們認為繼續推動這項業務向前發展的關鍵驅動因素。

And then Suky will walk us through the financial details of the quarter and importantly, discuss how we are again raising our full year financial guidance. And then, of course, we'll close things out with a Q&A session, and we look forward to answering your questions and having a dialogue in that session.

然後 Suky 將向我們介紹本季度的財務細節，重要的是，討論我們如何再次提高全年財務指導。當然，我們將以問答環節結束會議，我們期待在該環節中回答您的問題並進行對話。

Okay. To kick things off, I'm just going to take a step back, which I've been doing now for the last handful of quarters and I think deservedly so, because I want to say thank you. I want to say thank you to each and every one of our team members around the world because it's your hard work, it's your dedication to getting the job done that is moving this business forward.

好的。首先，我要退後一步，過去幾個季度我一直在這樣做，我認為這是理所當然的，因為我想說謝謝。我想對我們在世界各地的每一位團隊成員表示感謝，因為正是你們的辛勤工作、你們對完成工作的奉獻精神推動了這項業務的發展。

And I will tell you that I'm proud to say that you have delivered another very strong quarter, while once again making ZB a certified Great Place to Work. And you've done all of this while improving our scores and as a result of that, our rankings on the environmental, social and governance front.

我會告訴您，我很自豪地說您又交付了一個非常強勁的季度，同時再次使 ZB 成為經過認證的最佳工作場所。你們在完成所有這些工作的同時提高了我們的分數，從而提高了我們在環境、社會和治理方面的排名。

So I think simply stated, we are doing well, while also doing good. And that means for our team members, our patients, our customers and our communities and even our planet. So once again, I want to say thank you to our team for all that you do for ZB and to move our mission forward. And most importantly, for doing it together as one team, one ZB team.

所以我認為簡單地說，我們做得很好，同時也做得很好。這對於我們的團隊成員、我們的患者、我們的客戶、我們的社區甚至我們的星球來說都意味著。因此，我想再次感謝我們的團隊為 ZB 所做的一切，並推動我們的使命向前發展。最重要的是，作為一個團隊、一個 ZB 團隊一起完成這件事。

Now let's talk about the second quarter. And I'm just going to say simply, we delivered another strong quarter, again beating our own expectations. And that performance positions us to again raise our financial guidance on both the top and bottom line. And this is in the face of some pretty significant macro factors that are impacting us in the entire market. Ongoing supply challenges are very real, and I'll talk about those in a minute, but also inflationary pressure, a tough labor market and the geopolitical landscape that is putting pressure on everybody. But against that, I feel very confident about our pipeline, our execution and the team's demonstrated ability to navigate these headwinds, which gives us confidence to increase our financial outlook.

現在我們來談談第二季度。我只想簡單地說，我們又交付了一個強勁的季度，再次超出了我們自己的預期。這一業績使我們能夠再次提高我們對營收和利潤的財務指導。這是面對一些非常重要的宏觀因素影響我們整個市場的情況。持續的供應挑戰是非常真實的，我稍後會討論這些挑戰，還有通脹壓力、嚴峻的勞動力市場以及給每個人帶來壓力的地緣政治格局。但與此相反，我對我們的管道、我們的執行力以及團隊所表現出的應對這些逆風的能力非常有信心，這讓我們有信心改善我們的財務前景。

Okay. With that said, let's talk about the key drivers inside of Q2, and there were some positives and there were some negatives. I'll start with the positives, and the most important one, in my view, is that our team's execution remains flawless. We're seeing significant traction, probably the best we've ever seen with our new product innovation. And that paid dividends in the quarter for sure, but most importantly, is it pays dividends as we move this business forward.

好的。話雖如此，我們來談談第二季度的關鍵驅動因素，有一些積極的因素，也有一些消極的因素。我將從積極的方面開始，在我看來，最重要的一點是我們團隊的執行力仍然完美無缺。我們看到了巨大的吸引力，這可能是我們的新產品創新所見過的最好的。這肯定會在本季度帶來股息，但最重要的是，隨著我們推動這項業務的發展，它會帶來股息。

And I would say that procedure recovery continued in the quarter, again showing no meaningful impact from COVID or staffing challenges, and that allowed for a tailwind from increased provider capacity, and that resulted in backlog pull-through in the quarter.

我想說的是，本季度程序恢復仍在繼續，再次表明新冠疫情或人員配置挑戰沒有產生任何有意義的影響，這使得提供商容量的增加帶來了順風，從而導致了本季度積壓的情況。

In terms of headwinds, I would say that the team is doing a great job of managing the supply-constrained environment. But I would say that it is still very clearly a governor to our overall growth in the quarter, and it continues to be a distraction for the organization.

就不利因素而言，我想說該團隊在管理供應受限的環境方面做得很好。但我想說，它仍然非常明顯地影響著我們本季度的整體增長，並且它仍然是該組織的干擾。

See if I combine these things, though, all in all, our momentum continues, and it continues to grow. And I've said before, my confidence in this business, our confidence in this business is as high as it's ever been. And it's high for a good reason. If you just look at the knee franchise alone, our innovation strategy is working. We now have 4 meaningful pillars inside of this business. All of which can drive pricing stability, mix benefit and competitive conversions.

看看我是否將這些東西結合起來，總而言之，我們的勢頭仍在繼續，並且繼續增長。我之前說過，我對這個行業的信心，我們對這個行業的信心是前所未有的。而且它的高是有充分理由的。如果你只看膝蓋特許經營權，我們的創新戰略正在發揮作用。我們現在在這個業務中有 4 個有意義的支柱。所有這些都可以推動定價穩定性、組合效益和競爭性轉化。

First, let's look at the ROSA Robotic Platform combined with our Persona cementless Knee. Now this is a powerhouse combination that is and will continue to accelerate growth. And based on the traction we're seeing so far, we continue to believe that ROSA and Persona cementless together will enhance our robotics and cementless penetration from the current mid-teen level to 50% or better, 5-0% or better.

首先，讓我們看看 ROSA 機器人平台與我們的 Persona 非骨水泥膝關節的結合。現在，這是一個強大的組合，並且將會繼續加速增長。根據我們迄今為止所看到的牽引力，我們仍然相信ROSA 和Persona 無骨水泥將把我們的機器人技術和無骨水泥滲透率從目前的青少年水平提高到50% 或更高、5-0% 或更高。

The second pillar that we're focused on is Persona revision. This provides a meaningful conversion and mix opportunities inside the revision category. But importantly, it also acts as a powerful tip-of-the-spear product for conversions and primary needs.

我們關注的第二個支柱是角色修改。這在修訂類別內提供了有意義的轉換和混合機會。但重要的是，它還可以作為滿足轉換和基本需求的強大尖端產品。

And then third, it's just the overall shift of the ZB legacy knee systems to our now fully rounded out Persona portfolio. And this is a meaningful mix benefit that we can take advantage of that, I would say, is somewhat unique to our business.

第三，這只是 ZB 傳統膝關節系統向我們現在全面完善的 Persona 產品組合的整體轉變。這是一個有意義的混合效益，我們可以利用它，我想說，這對我們的業務來說有些獨特。

And then fourth, on top of all this, we have the world's first and only Smart Knee which is Persona iQ. And I know this is still in limited launch, but already, it offers surgeons unparalleled data access and is attractive to patients, those patients who want more direct engagement with their care recovery. And we're taking on a similar approach to our hip portfolio where we continue to launch meaningful innovation, again, giving us the opportunity for price stability, mix benefit and competitive conversions. And we have 4 pillars of focus here as well.

第四，除此之外，我們還擁有世界上第一個也是唯一一個智能膝關節，即 Persona iQ。我知道這仍然是有限的發布，但它已經為外科醫生提供了無與倫比的數據訪問，並且對患者有吸引力，這些患者希望更直接地參與他們的護理恢復。我們正在對我們的時尚產品組合採取類似的方法，繼續推出有意義的創新，再次為我們提供價格穩定、混合效益和競爭性轉換的機會。我們在這裡也有 4 個重點支柱。

First, it's ROSA and Hip Insight. These are technology shifts in robotics and mixed reality that are setting up the ZB Hip portfolio for greater adoption and growth.

首先是 ROSA 和 Hip Insight。這些機器人和混合現實領域的技術轉變正在建立 ZB Hip 產品組合，以實現更大的採用和增長。

Second is the Avenir Complete. This is our current flagship product combined with G7, which gives us a very strong position in both the attractive direct anterior and revision submarkets of hip.

第二個是 Avenir Complete。這是我們目前與 G7 結合的旗艦產品，這使我們在有吸引力的直接前牙和髖關節翻修子市場中佔據了非常有利的地位。

And then third, this position will be enhanced with work being done on a triple taper stem which will fully round out our direct interior approach portfolio. We believe this new portfolio, combined with the G7, which is the most versatile acetabular component available will be unmatched in the industry.

第三，這個位置將通過三錐柄的工作得到加強，這將全面完善我們的直接內部方法產品組合。我們相信，這一新產品組合與功能最齊全的髖臼組件 G7 相結合，將在業內無與倫比。

And then fourth, HAMR. This is our upcoming full launch of an automated impaction system that builds on a proven need in the market, and we fully expect that this launch will create surgical efficiencies while bringing personalized precision to each and every patient.

然後是第四個，HAMR。這是我們即將全面推出的自動撞擊系統，該系統建立在市場已證實的需求之上，我們完全期望這次發布將提高手術效率，同時為每位患者帶來個性化的精確度。

And then finally, in S.E.T., we are being disciplined and targeting investment in our growth driver categories, Upper extremities, Sports and CMFT, and each of these categories continue to perform. And given our momentum in these businesses and continued investment in innovation and dedicated infrastructure, we fully expect the S.E.T. set business to be a mid-single-digit grower in a normalized market environment.

最後，在 S.E.T.，我們正在遵守紀律，並針對我們的增長驅動類別、上肢、體育和 CMFT 進行投資，並且每個類別都繼續表現良好。鑑於我們在這些業務上的發展勢頭以及對創新和專用基礎設施的持續投資，我們完全期望 S.E.T.在正常化的市場環境中將企業設定為中個位數增長者。

So overall, we're very excited about our innovation momentum. It's very real. Remember, we've called out that we have 40 planned product launches between this year and the end of 2025. With the majority in 4%-plus growth markets. And that's important because these innovations will certainly drive near-term growth. There's no question about that, but also create better sustainability of that growth because of the markets they're in.

總的來說，我們對我們的創新勢頭感到非常興奮。這是非常真實的。請記住，我們已經說過，從今年到 2025 年底，我們計劃推出 40 種產品。其中大多數是在 4% 以上的增長市場。這很重要，因為這些創新肯定會推動近期增長。毫無疑問，而且由於它們所處的市場，也能創造更好的增長可持續性。

This portfolio shift that we're seeing and the team's execution capabilities are clear signs that our ZB transformation has taken hold. But I can tell you right now that we're not going to stop there. The goal is to continue to enhance our growth profile through our ongoing focus on active portfolio management, and that is supported by our already strong and strengthening balance sheet. And with that, I'll turn the call over to Suky for a closer look at Q2 and our latest expectations for the remainder of 2023. Okay, Suky?

我們看到的這種投資組合轉變和團隊的執行能力清楚地表明我們的 ZB 轉型已經站穩腳跟。但我現在可以告訴你，我們不會就此止步。我們的目標是通過持續關注積極的投資組合管理來繼續增強我們的增長前景，而這得到了我們本已強勁且不斷增強的資產負債表的支持。接下來，我將把電話轉給 Suky，詳細了解第二季度以及我們對 2023 年剩餘時間的最新預期。好的，Suky？

Thanks, and good morning, everyone. As Bryan noted, we had another excellent quarter. Our results were driven by strong end markets as well as strong execution across the entire organization. As a result, we are again increasing our full year financial outlook.

謝謝，大家早上好。正如布萊恩指出的，我們又度過了一個出色的季度。我們的業績是由強大的終端市場以及整個組織的強大執行力推動的。因此，我們再次提高了全年財務前景。

With that, let's turn to our results and updated full year guidance. Unless otherwise noted, my statements will be about the second quarter and how it compares to the same period in 2022. And my commentary will be on a constant currency and adjusted operating basis.

接下來，讓我們看看我們的業績和更新的全年指導。除非另有說明，我的陳述將涉及第二季度以及與 2022 年同期的比較。我的評論將基於固定匯率和調整後的運營基礎。

Net sales were $1.870 billion, an increase of 4.9% on a reported basis and an increase of 6%, excluding the impact of foreign currency. Additionally, we had a selling day headwind of less than 50 basis points in the quarter. Overall, the business continues to benefit from a recovery of elective procedures driven by continued market normalization, including hospital staffing and procedure cancellations returning to pre-COVID levels. We also benefited from some backlog recapture.

淨銷售額為 18.70 億美元，按報告計算增長 4.9%，剔除外匯影響則增長 6%。此外，本季度我們的銷售日逆風不到 50 個基點。總體而言，該業務繼續受益於市場持續正常化推動的選擇性手術的恢復，包括醫院人員配備和手術取消恢復到新冠疫情前的水平。我們還受益於一些積壓訂單的收回。

While market momentum is strong, we continue to face certain macro challenges, including global supply chain pressures that muted performance across the business. U.S. growth of 5% continued to outpace our expectations and international growth of 7.2% was driven by strong performance in both EMEA as well as Asia Pacific. All regions benefited from continued recovery of elective procedures, backlog recapture as well as strong commercial execution and new product uptake.

儘管市場勢頭強勁，但我們仍然面臨某些宏觀挑戰，包括全球供應鏈壓力導致整個業務表現不佳。美國 5% 的增長繼續超出我們的預期，國際增長 7.2% 是由歐洲、中東和非洲以及亞太地區的強勁表現推動的。所有地區都受益於擇期手術的持續恢復、積壓訂單的收回以及強大的商業執行力和新產品的採用。

Turning to our business category performance. Global Knees grew 10.5% with U.S. growing 9.8% and international growing 11.4%. The strong performance in Knees was driven by the 4 pillars that Bryan mentioned earlier, centering on a very attractive Persona portfolio, combined with the benefits of our ROSA robotics platform.

轉向我們的業務類別表現。全球膝蓋增長 10.5%，其中美國增長 9.8%，國際增長 11.4%。 Knees 的強勁表現是由 Bryan 之前提到的 4 個支柱推動的，以非常有吸引力的 Persona 產品組合為中心，並結合了我們 ROSA 機器人平台的優勢。

Global Hips grew 4.9% with U.S. Hips up 2.7% and international up 7.1%. Both regions posted good growth on the back of new product flow, execution and market recovery.

全球臀部增長 4.9%，其中美國臀部增長 2.7%，國際臀部增長 7.1%。在新產品流、執行和市場復甦的支持下，這兩個地區都實現了良好的增長。

Next, the S.E.T. category was down 30 basis points year-over-year. Inside of that, we saw continued strong performance from our 3 focus areas within the business segment. As expected, we saw pressure from reimbursement headwinds within the Restorative Therapies business. In addition, we experienced more acute supply challenges within Sports and Trauma. In the backdrop of this, we believe we will move beyond these headwinds, and this segment will rebound in the second half of the year.

接下來，S.E.T.該類別同比下降 30 個基點。其中，我們看到業務部門內 3 個重點領域的持續強勁表現。正如預期的那樣，我們看到了恢復治療業務中報銷逆風帶來的壓力。此外，我們在體育和創傷領域經歷了更嚴峻的供應挑戰。在此背景下，我們相信我們將克服這些不利因素，該細分市場將在今年下半年反彈。

Finally, our Other category grew 6.5%.

最後，我們的其他類別增長了 6.5%。

Now moving on to the P&L. In Q2, we reported GAAP diluted earnings per share of $1 compared to GAAP diluted earnings per share from continuing operations of $0.73 in the prior year. The increase was driven by higher revenues combined with lower nonoperating expenses due to ZimVie investment losses from the prior year that did not repeat as well as lower spend related to restructuring costs. These benefits were partially offset by increased investment in R&D and commercial initiatives to drive future growth.

現在轉向損益表。第二季度，我們公佈的 GAAP 攤薄每股收益為 1 美元，而上一年的 GAAP 持續經營業務攤薄每股收益為 0.73 美元。這一增長的推動因素是收入增加，加上 ZimVie 上一年的投資損失沒有重複而導致的營業外支出減少，以及與重組成本相關的支出減少。這些收益被為推動未來增長而增加的研發和商業計劃投資所部分抵消。

On an adjusted basis, we reported diluted earnings per share of $1.82 were flat to the prior year.

調整後的每股攤薄收益為 1.82 美元，與上年持平。

Higher year-over-year revenues and better gross margins were offset by higher R&D expenses, increased investments into commercial infrastructure for new product launches and higher interest expense. Our adjusted gross margin was 72%, up 40 basis points from the prior year despite absorbing current year inflationary pressures as well as pressure from prior year that was capitalized and flowing into this year's P&L.

較高的同比收入和較高的毛利率被較高的研發費用、新產品發布商業基礎設施投資的增加以及較高的利息費用所抵消。儘管吸收了今年的通脹壓力以及去年資本化並流入今年損益表的壓力，但我們的調整後毛利率為 72%，比上年增長了 40 個基點。

Favorable mix and FX hedge gains also helped support the increase in gross margin. Adjusted operating margin for the second quarter was 27.5%, down 50 basis points from the prior year. While gross margin was up, this was offset by higher operating expenses due to increased investments in R&D, aligned to our plan to improve our vitality index through new product innovation as well as higher commercial infrastructure costs to support new product uptake.

有利的組合和外匯對沖收益也有助於支撐毛利率的增長。第二季度調整後營業利潤率為 27.5%，較上年同期下降 50 個基點。雖然毛利率有所上升，但這被研發投資增加導致的運營費用增加所抵消，這與我們通過新產品創新提高活力指數的計劃以及支持新產品採用的更高商業基礎設施成本相一致。

Net interest and other nonoperating expenses of $57 million was higher than our expectations and significantly higher than the prior year due to certain foreign currency losses in the quarter as well as higher interest rates. Our adjusted tax rate of 16.3% was in line with expectations.

由於本季度的某些外匯損失以及較高的利率，淨利息和其他非運營支出為 5700 萬美元，高於我們的預期，並顯著高於上年同期。調整後稅率為16.3%，符合預期。

Turning to cash and liquidity. Operating cash flows were $348 million and free cash flow totaled $165 million. We ended the quarter with cash and cash equivalents of $320 million. Our balance sheet remains strong, providing strategic and financial flexibility for future growth.

轉向現金和流動性。運營現金流為 3.48 億美元，自由現金流總計 1.65 億美元。本季度結束時，我們的現金和現金等價物為 3.2 億美元。我們的資產負債表依然強勁，為未來的增長提供了戰略和財務靈活性。

Moving to our updated financial outlook for 2023. Based on another strong quarter of results, we are again raising our full year 2023 outlook. We are confident that we will continue to grow our top line above market rates and expand operating margin while continuing to reinvest in our business for future growth.

轉向我們更新的 2023 年財務展望。基於又一個強勁的季度業績，我們再次上調 2023 年全年展望。我們有信心，我們將繼續將我們的收入增長至高於市場水平並擴大營業利潤率，同時繼續對我們的業務進行再投資以實現未來的增長。

We are increasing and narrowing our constant currency revenue growth range to 7% to 7.5% with an expected foreign currency exchange headwind of 50 basis points. We are also increasing our adjusted EPS guidance range to $7.47 to $7.57.

我們正在將固定貨幣收入增長范圍擴大並縮小至 7% 至 7.5%，預計外匯匯率阻力為 50 個基點。我們還將調整後每股收益指導範圍提高至 7.47 美元至 7.57 美元。

Additionally, due to certain FX-related pressures and higher interest rates, we now expect net interest and other nonoperating expenses to be around $200 million for the year. Our expectation around tax rate and total shares outstanding remains unchanged. And we continue to expect free cash flow to be in the range of $1 billion to $1.1 billion.

此外，由於某些與外匯相關的壓力和較高的利率，我們現在預計今年的淨利息和其他非運營支出約為 2 億美元。我們對稅率和流通股總數的預期保持不變。我們仍然預計自由現金流將在 10 億美元至 11 億美元之間。

Our Q3 and Q4 revenue cadence expectations are unchanged. Q3 revenue dollars are expected to be sequentially down versus Q2 and in line with normal seasonality, and Q4 will be our strongest quarter on a dollar basis. While we expect momentum gained from the first half to flow into the second half of the year, recent and new sanctions on Russia may mute growth.

我們對第三季度和第四季度收入節奏的預期保持不變。第三季度的收入預計將比第二季度連續下降，並且與正常的季節性相符，而第四季度將是我們以美元計算最強勁的季度。雖然我們預計上半年獲得的勢頭將延續到下半年，但最近對俄羅斯的新制裁可能會抑制經濟增長。

And regarding selling day impact, we continue to expect Q3 to have a selling day headwind of about 150 basis points, while Q4 will have about 100 basis point tailwind. Overall, the net day rate impact for the full year is not meaningful.

至於銷售日影響，我們繼續預計第三季度銷售日將出現約 150 個基點的逆風，而第四季度將出現約 100 個基點的順風。總體而言，全年淨日費率影響並不大。

From a margin perspective, we expect Q3 to be our low watermark for the year from both a gross margin and operating margin standpoint. While gross margin will have less variability from quarter-to-quarter, we expect Q3 operating margin to step down sequentially between 150 and 200 basis points due to the normal seasonality of our business.

從利潤率的角度來看，我們預計第三季度從毛利率和營業利潤率的角度來看都將是我們今年的低水位。雖然毛利率環比變化較小，但由於我們業務的正常季節性，我們預計第三季度營業利潤率將依次下降 150 至 200 個基點。

We expect Q4 to step up significantly on a sequential basis, delivering our highest operating margin for the year.

我們預計第四季度將環比大幅增長，實現今年最高的營業利潤率。

Importantly, we remain committed to investing for future growth while delivering meaningful full year margin expansion in 2023. We're really pleased with how our team is navigating a challenging environment.

重要的是，我們仍然致力於為未來增長進行投資，同時在 2023 年實現有意義的全年利潤率擴張。我們對我們的團隊如何應對充滿挑戰的環境感到非常滿意。

In summary, we delivered another quarter of excellent top line results, beating our expectations while managing very real supply chain challenges. We are building on our early momentum through continued execution and are again able to increase our full year guidance. We are also reiterating our confidence and expectation to be a 4% plus or even mid-single-digit top line grower in a normalized market while delivering strong earnings.

總之，我們又一個季度取得了出色的營收業績，超出了我們的預期，同時應對了非常現實的供應鏈挑戰。我們正在通過持續執行來鞏固我們的早期勢頭，並能夠再次提高我們的全年指導。我們還重申我們的信心和期望，即在正常化的市場中實現 4% 以上甚至中個位數的營收增長，同時實現強勁的盈利。

In short, our business has never been stronger. With that, I'll turn the call back over to Keri.

簡而言之，我們的業務從未如此強大。這樣，我會將電話轉回給 Keri。

Thanks, Suky. Before we start the Q&A session, just a quick reminder to please limit yourself to a single question and one follow-up so that we can get through as many questions as possible during the call. With that, operator, may we have the first question, please?

謝謝，蘇基。在我們開始問答環節之前，請快速提醒您，請將自己限制在一個問題和一個後續問題上，以便我們可以在通話期間解決盡可能多的問題。那麼，接線員，我們可以問第一個問題嗎？

We'll go first to Travis Steed with Bank of America.

我們首先請教美國銀行的特拉維斯·斯蒂德 (Travis Steed)。

Good Morning Bryan and Suky. Nice quarter. I guess I'd start out with looking at the Hips and Knees in the quarter. I would think that knees 2x the growth rate of hip this quarter, backlog will be similar there. Is the elevated knee growth, mostly the mix shift from cementless and ROSA coming through? I'm curious how much supply is limiting growth in Hips and Knees here and what you're assuming about that improving in the back half?

早上好，布萊恩和蘇基。不錯的季度。我想我會從觀察本季度的臀部和膝蓋開始。我認為本季度膝蓋的增長率是臀部的 2 倍，積壓情況也將類似。膝蓋生長升高（主要是非骨水泥和 ROSA 的混合轉變）是否會出現？我很好奇有多少供應限制了臀部和膝蓋的生長，以及您對後半部分的改善有何假設？

Thanks, Travis. Well I think maybe I'll do because obviously, Ivan is here with us and as close to the action as any of us. So maybe I'll pass it on him to answer the question. Ivan?

謝謝，特拉維斯。好吧，我想也許我會這麼做，因為顯然，伊万和我們在一起，並且和我們任何人一樣接近行動。所以也許我會把它轉給他來回答這個問題。伊万？

I will say that the growth in knees is mainly innovation. We continue to see great momentum with ROSA penetration, so a pretty dramatic increase in penetration in the U.S. and core markets OUS. The launch of Persona OsseoTi or cementless launch is gaining great traction here in the U.S. In the prepared remarks, Bryan mentioned how we plan to go from 15%, 1-5 to 5-0- I won't disclose where we are in Q2, but it was a significant uptake in that side as well. We did also see great momentum in the ASC. We continue to grow here in the U.S. double digit in the ASC space.

我會說膝蓋的增長主要是創新。我們繼續看到 ROSA 滲透率的強勁勢頭，因此美國和核心市場 OUS 的滲透率大幅增加。 Persona OsseoTi 或無水泥發射的推出在美國獲得了巨大的關注。在準備好的講話中，布萊恩提到我們計劃如何從15%、1-5 到5-0 - 我不會透露我們在第二季度的情況，但這方面也有重大進展。我們也確實看到了 ASC 的強勁勢頭。我們在美國的 ASC 領域繼續以兩位數的速度增長。

And yes, there was some backlog in key markets around the world. We saw better backlog consumption in EMEA than here in the U.S., but nonetheless backlog was part of the performance. And to the latter part of your question, certainly, supply was a governor. I do believe -- we do believe that in a normal environment with better supply or already very compelling growth rate could have been even higher. But all summarize backlog, innovation and great commercial execution were the key drivers behind the knee performance.

是的，全球主要市場出現了一些積壓。我們發現歐洲、中東和非洲地區的積壓訂單消耗量比美國要好，但儘管如此，積壓訂單也是業績的一部分。對於你問題的後半部分，當然，供應是一個調節器。我確實相信——我們確實相信，在供應更好或已經非常引人注目的正常環境下，增長率可能會更高。但所有人都總結積壓、創新和出色的商業執行力是膝蓋性能背後的關鍵驅動力。

Great. And I guess looking forward that the sustainability of this kind of the plus and the 4 plus, and I think I heard the comment even mid-single-digit growth. It sounds like even with some tougher comps you're still confident in that seeing the plus in the 4 plus? And I assume that price is better. You got the mix of backlog is probably still lasting through 2024. I just kind of love to hear your confidence in kind of seeing the upside to that 4-plus?

偉大的。我想期待這種 PLUS 和 4 PLUS 的可持續性，我想我聽到的評論甚至是中等個位數的增長。聽起來即使有一些更艱難的比較，您仍然有信心看到 4+ 的優勢？我認為價格更好。你知道積壓的情況可能會持續到 2024 年。我只是很高興聽到你對看到 4+ 的好處有信心？

Yes. Travis, this is Suky. So yes, very perceptive on our comments. Yes, we've got confidence in our business in a normalized environment that we're going to be at 4 plus or, as I said, a mid-single-digit grower. There's a few things. First, I focus on qualitatively execution is incredibly strong. Right now, we've got -- if you think about -- our WAMGR, weighted average market growth continues to improve. That's been steadily improving, one, by investing in R&D organically in higher-growth submarkets even within recon, but then in sports, Extremity and Trauma, and then if you look at the M&A that we've been doing, it's been in higher growth markets in Sports, Upper Extremities as well as CMFT. So overall, our weighted average market growth has been improving.

是的。特拉維斯，這是蘇基。所以，是的，我們的評論非常有洞察力。是的，我們對正常化環境下的業務充滿信心，我們將達到 4 以上，或者正如我所說，成為中個位數的增長者。有幾件事。首先，我關注的是質量執行力非常強。現在，如果你想一想，我們的 WAMGR（加權平均市場增長）持續改善。這一情況一直在穩步改善，第一，通過對研發進行有機投資，即使是在偵察領域，但在體育、四肢和創傷領域，如果你看看我們一直在進行的併購，就會發現它的增長速度更快體育、上肢以及 CMFT 市場。總體而言，我們的加權平均市場增長一直在改善。

Next, it's really around our innovation and what that innovation brings in terms of the ability to compete in the market, what it brings relative to share of wallet as well as mix is all very positive as well. And then the last is our performance relative to market. I think we've demonstrated for a number of quarters now that we can perform at or better than market on a consistent basis. So really execution is the primary driver why we've got confidence behind that.

接下來，它實際上是圍繞我們的創新而展開的，創新在市場競爭能力方面帶來的影響，相對於錢包份額以及組合帶來的影響也都是非常積極的。最後是我們相對於市場的表現。我認為我們已經在幾個季度中證明了我們可以持續保持或優於市場的表現。因此，執行力確實是我們對此充滿信心的主要驅動力。

And secondly, you're also seeing some improving market dynamics. One, we think that overall, the patient dynamics are changing. You're seeing a lowering of the average age of our patients. That's expanding our overall market. Two, we think that they're getting more confident in the outcomes of recon procedures and sports procedures, again, because the technology, the innovation is improving, we're bringing real value to the marketplace. And I think the last thing is really the convenience and the comfort with the ASC setting is also helping to accelerate the overall market.

其次，您還看到市場動態有所改善。第一，我們認為總體而言，患者動態正在發生變化。您會發現我們患者的平均年齡有所下降。這正在擴大我們的整體市場。第二，我們認為他們對偵察程序和體育程序的結果越來越有信心，因為技術和創新正在進步，我們正在為市場帶來真正的價值。我認為最後一件事是 ASC 設置的便利性和舒適性也有助於加速整個市場的發展。

So the market dynamics are still early and preliminary, but the execution is very strong and very real. So -- we've got a lot of confidence qualitatively. And I think if you look at the back half of our guidance, the implied growth rate of being roughly about 5%, I think that's another proof point quantitatively that gives us that confidence. So again, thanks for picking up on that. And those are the things that give us confidence.

因此，市場動態仍處於早期和初步階段，但執行力非常強勁且非常真實。所以——我們在質量上有很大的信心。我認為，如果你看看我們指導的後半部分，隱含的增長率約為 5%，我認為這是另一個給我們信心的定量證據。再次感謝您接受這一點。這些都是給我們信心的事情。

We'll go next to Richard Newitter with Truist Securities.

接下來我們將介紹 Truist 證券公司的理查德·紐特 (Richard Newitter)。

Maybe just looking at the margins, I'm trying to calibrate if we're kind of back to normalized levels sustainably, what your normalized margin and margin improvement prospects are? You did about 200 basis points of year-over-year operating leverage in the first quarter, and you grew double digits on the top line.

也許只是看看利潤率，我正在嘗試校准我們是否可持續地回到正常化水平，你們的正常化利潤率和利潤率改善前景是多少？第一季度運營槓桿同比增長約 200 個基點，營收實現兩位數增長。

Now you're at about 100 basis points roughly in the back half, and that's like you said, a mid-single-digit implied growth rate on the top line. So can we assume like that -- those are basically the right level of operating leverage to correlate to call it, upper mid-single digits? You're getting north of 100 basis points, something more in the lower mid-single digits or upper low single digits, you're 50 basis points plus operating leverage?

現在，後半段的增長率大約為 100 個基點，就像您所說的，頂線隱含增長率為中個位數。那麼我們是否可以這樣假設——這些基本上是正確的運營槓桿水平，可以稱之為中上個位數？你的利率已經超過了 100 個基點，更多的是中低個位數或高低個位數，你的利率是 50 個基點加上運營槓桿嗎？

Yes. So first of all, thanks for the question, Rich. I'll just step back a little bit and just say, if you go back to 2022 even in a very challenging market with a lot of inflationary pressure, supply chain disruption, et cetera, we were able to grow our operating margins. As you look at 2023, you take our implied guidance, it would suggest we're going to grow operating margins by almost another 100 basis points at the midpoint.

是的。首先，謝謝里奇提出的問題。我只是退一步說，如果你回到 2022 年，即使是在一個充滿挑戰的市場，通貨膨脹壓力很大，供應鏈中斷等，我們也能夠提高我們的營業利潤率。當你展望 2023 年時，你會看到我們的隱含指導，這表明我們將在中點將營業利潤率再增長近 100 個基點。

So we feel really good about what the company has been doing. And inside of that, we've been doing that with very strong, as you've seen, mid-single-digit growth, very good gross margin performance. I'll break that down in just a moment. Offsetting continued challenges with inflationary pressures, but also inflation from '22 that capitalized into this year, which we've talked a lot about, while still investing against the business for future growth, right?

因此，我們對公司一直在做的事情感到非常滿意。其中，正如您所看到的，我們一直在以非常強勁的中個位數增長和非常好的毛利率表現來做到這一點。我稍後會分解它。抵消通貨膨脹壓力帶來的持續挑戰，以及從 22 世紀開始的通貨膨脹，我們已經討論了很多，同時仍然針對未來增長的業務進行投資，對嗎？

So a very strong profile, good top line growth, good gross margin, offsetting the challenges and continuing to invest against the business. So I do think our ability to sustain these very high, very attractive margins this year into the future is absolutely table stakes, but I also think that we're going to be in a position going forward in a normalized market, where we're going to be able to expand margins from here. So that's how we think about things. I won't try and break down between what level of revenue growth, how much margin expansion. There are a lot of factors that play into that.

因此，非常強大的形象、良好的營收增長、良好的毛利率，抵消了挑戰並繼續對業務進行投資。因此，我確實認為我們今年保持這些非常高、非常有吸引力的利潤率的能力絕對是賭注，但我也認為我們將在一個正常化的市場中處於有利地位，在這個市場中，我們將能夠從這裡擴大利潤。這就是我們思考問題的方式。我不會嘗試分解收入增長水平和利潤率擴張的程度。造成這種情況的因素有很多。

The big picture takeaway is we're at a really good level now, we're going to sustain that, if not grow that into '24 and beyond.

最重要的是，我們現在處於一個非常好的水平，我們將維持這一水平，即使不能將其增長到 24 年及以後。

Okay. And just maybe feeding that into M&A. As we think about your M&A and tuck-in strategy, how should we think of the prioritization of top line from tuck-in M&A versus margin and earnings dilution trade-off?

好的。也許只是將其納入併購。當我們考慮您的併購和整合戰略時，我們應該如何考慮整合併購的收入優先順序與利潤和收益稀釋權衡之間的關係？

Yes. So we know how to work around this as a leadership team. And clearly, what you see by looking at other companies in our sector is that valuations are correlated at a very high level to revenue growth. So understanding the ability to get our revenue growth at a higher rate. The mid-single digit is a great accomplishment given where the company was just 3 to 5 short years ago, and we're happy about the progress we've made, but we're not satisfied, right?

是的。因此，作為領導團隊，我們知道如何解決這個問題。顯然，通過觀察我們行業的其他公司，您會發現估值與收入增長的相關性非常高。因此了解讓我們的收入以更高的速度增長的能力。考慮到公司在短短 3 到 5 年前的情況，中個位數的業績是一項偉大的成就，我們對所取得的進步感到高興，但我們並不滿足，對嗎？

And we believe that M&A, investing into faster-growth markets absolutely is the right thing to do and ultimately, we'll improve our overall weighted average market growth and the overall growth rate for the company.

我們相信，併購、投資於增長較快的市場絕對是正確的做法，最終，我們將提高整體加權平均市場增長和公司的整體增長率。

And then once you get there, you get natural leverage, the P&L starts to flow through and over time, you start to get to a profile where you get very strong earnings growth well ahead of revenue growth. And so that's the profile that we're going for long term.

然後，一旦你到達那裡，你就獲得了自然的槓桿作用，損益表開始流動，隨著時間的推移，你開始達到這樣的目標：你的盈利增長遠遠領先於收入增長。這就是我們長期追求的形象。

From an M&A standpoint, our first priority is that revenue growth and that diversification of the company into faster-growth markets. That may come with some near-term dilution, but we're also going to be very conscious about driving P&L discipline and looking for accretion in a reasonable amount of time, let's say, within the first 2 years. So that's how we think about M&A. The priority is going to be about accelerating the overall company's growth.

從併購的角度來看，我們的首要任務是收入增長以及公司多元化進入增長更快的市場。這可能會帶來一些近期的稀釋，但我們也將非常有意識地推動損益紀律，並在合理的時間內尋求增長，比如說，在頭兩年內。這就是我們對併購的看法。首要任務是加速公司整體發展。

We'll go next to Pito Chickering with Deutsche Bank.

接下來我們將與德意志銀行一起前往 Pito Chickering。

Can we touch more into S.E.T. You talked about strength in 3 focus areas, as process of supply challenges. What were those issues? Are they fixed at this point? And how should we be modeling S.E.T. in the back half of the year? And if the supply tunnels are fixed, should we think about bolus in the third quarter?

我們可以進一步了解 S.E.T.您談到了 3 個重點領域的優勢，即供應挑戰的過程。這些問題是什麼？他們現在已經確定了嗎？我們應該如何為 S.E.T 建模？下半年？如果供應隧道已經修復，我們是否應該考慮在第三季度進行補充？

Yes. So a couple of things that inside the second quarter on S.E.T. One, we continue to work through some of the reimbursement changes in our Restorative Therapies business that we talked about a year ago. We believe we've now sunsetted those. So those shouldn't be a challenge as we move into Q3 and Q4, the rest of the year. However, we did see some pretty acute supply issues, especially in our Sports business and to a lesser extent, Trauma. That muted growth.

是的。所以 S.E.T. 第二季度發生了一些事情。第一，我們繼續致力於一年前討論過的恢復治療業務的一些報銷變更。我們相信我們現在已經取消了這些。因此，當我們進入今年剩餘時間的第三季度和第四季度時，這些不應該成為挑戰。然而，我們確實看到了一些相當嚴重的供應問題，特別是在我們的體育業務以及較小程度上的創傷業務中。增長乏力。

But underneath that, our priority areas of Sports, Upper Extremities and CMFT all performed incredibly well. And so we're happy with the continued progress and momentum we're making in those businesses. We do expect an inflection in the back half of the year for those -- for the S.E.T. category as a whole to rebound. It's likely going to be stronger in the fourth quarter as we continue to work through the fluid situation on supply in the third quarter.

但在此之下，我們的體育、上肢和 CMFT 等優先領域都表現得非常出色。因此，我們對這些業務所取得的持續進步和勢頭感到高興。我們確實預計 S.E.T. 會在今年下半年出現拐點。品類整體出現反彈。隨著我們繼續解決第三季度供應不穩定的問題，第四季度的情況可能會更加強勁。

Okay. Great. And then in the script, you talked about Russia getting growth. Can you walk us through a Russia could impact growth at this point and quantify the revenues and raw materials exposed to Russia?

好的。偉大的。然後在劇本中，你談到了俄羅斯的增長。您能否向我們介紹俄羅斯目前可能影響增長的情況，並量化俄羅斯面臨的收入和原材料？

Sure. So overall, Russia is less than 1% of total sales on a full year basis. We became aware at the end of -- towards the end of the second quarter, that new and unexpected sanctions were being placed on certain medical device products. Our products sell into that category. So we basically have to go back and reapply for licensing against all of our products. We don't think that, that's going to be a governor in perpetuity, but at least for the third quarter, it's going to create a bit of a headwind potentially a little bit into Q4 worst case.

當然。因此總體而言，俄羅斯的銷售額佔全年總銷售額的比例不到 1%。我們在第二季度末意識到，某些醫療器械產品正在受到新的、意想不到的製裁。我們的產品屬於該類別。因此，我們基本上必須返回並重新申請我們所有產品的許可。我們認為，這不會成為永久的州長，但至少在第三季度，它將在第四季度最壞的情況下產生一些阻力。

We think that, that headwind is roughly about 50 basis points in the back half of the year. And again, most of that will be felt in the third quarter. From a raw materials exposure, I think the biggest area, and we've talked about this at length -- our titanium supplies coming out of Russia have been relatively stable. That's a good sign. But we also took the additional measure at the end of '22 to create some redundancy and to find alternate suppliers, multiple suppliers outside of Russia. So we feel good about our titanium supplies.

我們認為，今年下半年的阻力大約為 50 個基點左右。同樣，其中大部分將在第三季度感受到。從原材料暴露來看，我認為最大的領域，我們已經詳細討論過這一點 - 我們來自俄羅斯的鈦供應相對穩定。這是一個好兆頭。但我們還在 22 年底採取了額外措施，以創造一些冗餘並尋找替代供應商，即俄羅斯以外的多個供應商。所以我們對我們的鈦供應感覺良好。

We'll go next to Jeff Johnson with Baird.

我們將和貝爾德一起去傑夫·約翰遜旁邊。

Kind of, I guess, we're ticking through all the segments here. So maybe if we just look at the Other segment, the 6% growth that was at least a nice step-up from what we've seen kind of on a trailing 12-month basis. Maybe any insights there what drove that and just kind of how we're seeing mix between leasing contracts and/or outright purchases on ROSA?

我想，我們正在遍歷這裡的所有部分。因此，如果我們只看其他細分市場，6% 的增長至少比我們在過去 12 個月的基礎上看到的增長是一個不錯的進步。也許有什麼見解推動了這一點，以及我們如何看待 ROSA 上的租賃合同和/或直接購買之間的混合？

Yes, sure. Jeff, I'll take that, Suky again. I think the biggest driver was bone cement, not surprising when you see the recon growth numbers in the second quarter to see a very good other performance, especially for bone cement. We also saw some good performance outside in surgical as well, which also creeped up. Your last question inside of that was around ROSA placements versus outright sales. And consistent with prior commentary, we're seeing the majority of our ROSA placements or installments, I should say, being done through the placement strategy versus sales. So that trend continues.

是的，當然。傑夫，我會接受的，蘇基。我認為最大的推動力是骨水泥，當你看到第二季度的偵察增長數據並看到非常好的其他表現時，尤其是骨水泥，這並不奇怪。我們在外科手術之外也看到了一些良好的表現，這也在悄然上升。您的最後一個問題是關於 ROSA 展示位置與直接銷售。與之前的評論一致，我們看到大部分 ROSA 安置或分期付款，我應該說，是通過安置策略而不是銷售來完成的。所以這種趨勢仍在繼續。

All right. Great. And then maybe just a follow-up, just on backlog. I know you don't guide on backlog and any high-level comments though on how you're thinking about that backlog clearing in EMEA and what you saw in the U.S.? And just kind of comfort with that backlog still continuing to provide some tailwinds maybe over the coming year or 2? Thanks.

好的。偉大的。然後也許只是後續行動，只是積壓的工作。我知道您不會就積壓工作和任何高層評論提供指導，但您如何看待歐洲、中東和非洲地區積壓工作的清理以及您在美國看到的情況？對於未來一兩年內積壓的訂單仍然繼續提供一些推動力，您是否感到有點安慰？謝謝。

Yes, definitely felt that in the second quarter as we talked about. That helped offset some of the supply challenges that we had. We expect backlog to continue to contribute through the rest of this year. It's always difficult to determine exactly how much was in any given quarter and to predict how much will come through. It's a little bit of amorphous, but we know that it's there, and we have high confidence that it's going to -- we're going to continue to see it through the back end of this year and likely through 2024.

是的，我們在第二季度確實感受到了這一點。這有助於抵消我們面臨的一些供應挑戰。我們預計積壓訂單將在今年剩餘時間內繼續做出貢獻。準確確定某個特定季度的收入並預測將會實現多少總是很困難的。它有點不穩定，但我們知道它就在那裡，而且我們對它的存在充滿信心——我們將在今年年底，甚至可能到 2024 年繼續看到它。

We'll go next to Larry Biegelsen with Wells Fargo.

接下來我們將與富國銀行一起去拉里·比格爾森 (Larry Biegelsen)。

Congrats on a nice quarter here. I'll ask a couple on the pipeline. Persona iQ, do you guys have what you need now for a full launch from a clinical data standpoint -- and if so, what data are you going to promote and file for the label? And I had one follow-up.

恭喜您度過了一個愉快的季度。我會問幾個正在籌備中的人。 Persona iQ，從臨床數據的角度來看，你們現在擁有全面啟動所需的東西嗎？如果是的話，你們將推廣哪些數據並為標籤歸檔？我有一個後續行動。

Absolutely, Larry. I'll take that one. First and foremost, we remain on track with our limited market release. We've been saying all along that by January Q1 of 2024, we'll be ready for a full launch. And I will say that we're almost there in gain on the data. We're approaching 1 billion data points from multiple patients thousands of implants by now.

當然，拉里。我會接受那個。首先也是最重要的是，我們仍按有限的市場發布進行。我們一直在說，到 2024 年 1 月第一季度，我們將準備好全面發布。我想說的是，我們幾乎已經在數據上取得了進展。到目前為止，我們正在接近來自多個患者的數千個植入物的 10 億個數據點。

And really we're answering 3 questions. Number one is, to your point, what is the value proposition? Can we demonstrate a reduction in the length of the episode of care? Can we bring objectivity to a range of motion metrics? Can we demonstrate better gate performance given better technique, better surgery? Can we compare recovery curves? Who does better post implantation? There's a lot of data we get in that regard, and we'll be filing some claims once we digest the multiple data points that we're getting. So that's question number one.

事實上，我們正在回答 3 個問題。就您而言，第一個問題是什麼？我們能否證明護理時間的縮短？我們能否為一系列運動指標帶來客觀性？如果有更好的技術、更好的手術，我們能否展示更好的門性能？我們可以比較恢復曲線嗎？誰的植入後效果更好？我們在這方面獲得了大量數據，一旦我們消化了所獲得的多個數據點，我們將提出一些索賠。這是第一個問題。

Question number two in the limited market release is how do we make the whole thing seamless? This is new to the word technology. It's got a home base station, as you know. It involves the patient, involves the surgeon, the caregiver. So we want to make sure that is a best-in-class experience, and there are some things that we're working around.

有限市場發布的第二個問題是我們如何使整個事情變得無縫？這對於技術這個詞來說是個新鮮事。如你所知，它有一個家庭基站。它涉及患者、外科醫生、護理人員。因此，我們希望確保這是一流的體驗，並且我們正在解決一些問題。

And then the third question, and I know this is near and dear to you is who's going to pay for the technology? To that end, we got the NTAP kicking in at the beginning of October.

然後第三個問題，我知道這對你來說很重要，是誰將為這項技術買單？為此，我們在 10 月初啟動了 NTAP。

You'll be pleased to know that we follow up with your question around TPD, transitional pass-through. We had a deadline of August 23 to submit. We're in the final stages of evaluating what the submission could look like. We're evaluating commercial payer strategy as part of this limited market release. So we continue to think about the payer as well. So with all of that said, the what, the how and the who will pay, I think going to be in a good position to start to see a full market release by January, if not late Q1 2024.

您會很高興得知我們會跟進您有關 TPD（過渡傳遞）的問題。我們的提交截止日期為 8 月 23 日。我們正處於評估提交內容的最後階段。作為此有限市場發布的一部分，我們正在評估商業支付策略。因此，我們也繼續考慮付款人。因此，綜上所述，支付內容、支付方式以及支付者，我認為在 1 月份（如果不是 2024 年第一季度末）開始看到完整的市場發布將處於有利位置。

Ivan, thanks so much for that comprehensive answer. Maybe another one for you. On the Robot -- for the shoulder application for the Robot. I think you just confirm that you still expect to be first to market and what need -- what still needs to be done? And if you'll give any more color on the time line? That would be great.

伊万，非常感謝您的全面回答。也許再給你一份。在機器人上——用於機器人的肩部應用。我想你只是確認你仍然希望成為第一個進入市場的人，以及需要什麼——還需要做什麼？您能否在時間線上提供更多顏色？那太好了。

I'd love to give you more color, but Bryan and Keri will shoot me. I will tell you that we remain convinced capital letters that would be first to market in Shoulder Robotics, and beyond the speed to market, what I like is what the actual platform offers. Faster surgeries, more accurate outcomes, shorter recovery. So a lot what we've seen, we've done our final validation labs with customers, both friends and family customer surgeons and also competitive surgeons and the feedback has been outstanding.

我很樂意給你更多的色彩，但布萊恩和凱里會開槍打死我。我會告訴你，我們仍然相信大寫字母將在 Shoulder Robotics 中首先上市，除了上市速度之外，我喜歡的是實際平台提供的功能。手術速度更快、結果更準確、恢復時間更短。我們已經看到了很多，我們已經與客戶、朋友和家人客戶外科醫生以及有競爭力的外科醫生一起完成了最終的驗證實驗室，並且反饋非常出色。

Beyond the platform dynamics that I mentioned around shorter recovery, faster surgery, I just love the integration that Russia shoulder will have with the rest of the CDH ecosystem. So more than that soon.

除了我提到的關於更短的恢復、更快的手術的平台動態之外，我還喜歡俄羅斯肩負的與 CDH 生態系統其他部分的整合。很快就不止這些了。

We'll go next to Ryan Zimmerman with BTIG.

接下來我們將與 BTIG 一起討論 Ryan Zimmerman。

We all heard United Healthcare's comments this quarter. It was evident in results, but it was specific to recon on Medicare. I'm just wondering if you can kind of parse out the procedure environment within S.E.T.? It's hard to see given some of the supply chain dynamics. I'm just wondering if you can kind of speak to that environment relative to recon in your expectations for durability of its robustness, if you will? Through the remainder of this year, similar to the recon environment.

我們都聽到了聯合醫療集團本季度的評論。結果很明顯，但它是針對醫療保險的偵察。我只是想知道你是否可以解析出 S.E.T. 中的過程環境？考慮到供應鏈的一些動態，很難看出這一點。我只是想知道你是否可以談談相對於偵察的環境，以表達你對其穩健性持久性的期望，如果你願意的話？在今年剩下的時間裡，與偵察環境類似。

Ryan. I'll take that one as well. So obviously, it varies from region to region. What I will tell you here in the U.S., we saw greater backlog consumption coming from Knees and Hips. It was actually quite the opposite in EMEA. When it comes to S.E.T., a lot of those cases here in the U.S. are done in an ASC environment. And other cases, are commercial payers, and it's been pretty consistent.

瑞安.我也拿那個。顯然，不同地區的情況有所不同。我要告訴你的是，在美國，我們看到膝蓋和臀部的積壓消耗量更大。歐洲、中東和非洲地區的情況實際上恰恰相反。說到 S.E.T.，美國的很多案例都是在 ASC 環境中完成的。其他案例都是商業付款人，而且非常一致。

But again, it varies quarter-to-quarter, geography to geography. We do believe that the backlog is going to be here for a while, and we'll see fluctuation given ASC non-ASC in the U.S. And then again, different variables outside of the U.S.

但同樣，每個季度、每個地區的情況都會有所不同。我們確實相信積壓將持續一段時間，考慮到美國的 ASC 非 ASC，我們會看到波動，而且美國以外的不同變量也會出現波動。

I think the key takeaway you just don't see as much impact on the S.E.T. business as you do the Recon business when you think about backlog.

我認為關鍵的一點是，你沒有看到對 S.E.T. 產生那麼大的影響。當您考慮積壓時，您的業務就像您進行偵察業務一樣。

Fair. That's helpful, Bryan. And then we talked about Russia. Last year, it was China and the impact of BBP. I'm just wondering if you could articulate specifically what the status is in China? We've heard from many of your peers, China is improving. What are your expectations for China growth? As we kind of lap -- as we start to lap the BBP impacts?

公平的。這很有幫助，布萊恩。然後我們談到了俄羅斯。去年是中國和BBP的影響。我只是想知道你能否具體說明一下中國的情況如何？我們從許多同行那裡聽說，中國正在進步。您對中國經濟增長有何預期？當我們開始繞圈時——當我們開始繞圈 BBP 影響時？

Yes. So first of all, BBP is not a material driver for us at all in 2023. We sort of turned the corner on that between the end of '21 and 2022. So we actually see China as a growth driver for us, albeit at a lower level, but we do believe that, that market has some very strong growth for us. I'd say pre-BBP, that market was growing in the low double-digit range. And we'd be surprised if we didn't return to that level, if not better.

是的。因此，首先，BBP 在2023 年對我們來說根本不是一個實質性驅動因素。在21 年底到2022 年之間，我們在這方面扭轉了局面。因此，我們實際上將中國視為我們的增長驅動力，儘管速度較慢。較低的水平，但我們確實相信，該市場對我們來說有一些非常強勁的增長。我想說的是，在 BBP 之前，該市場正在以較低的兩位數範圍增長。如果我們沒有回到那個水平，即使不是更好，我們也會感到驚訝。

We'll go next to Mike Matson with Needham & Company.

接下來我們將與尼達姆公司的邁克·馬特森 (Mike Matson) 會面。

Back to the S.E.T. business. So Bryan called out kind of the subcategories there that seem to be the area of focus. But the things I didn't hear a mention were lower extremities, i.e., foot and ankle or trauma? So can you maybe just comment on why those were kind of left out of the comments?

回到 S.E.T.商業。因此，布萊恩指出了似乎是重點領域的子類別。但我沒有聽到提到的是下肢，即腳和腳踝或外傷？那麼您能否評論一下為什麼這些內容被排除在評論之外？

Yes, sure. I can do that as well. So I think Suky alluded to the trauma headwinds that we had in the quarter. We had some supply challenges. And obviously, you got the comp in China versus a year ago. Here in the U.S., there were some contracts that we lost about a year ago.

是的，當然。我也能做到。所以我認為蘇基提到了我們在本季度遇到的創傷逆風。我們遇到了一些供應方面的挑戰。顯然，你在中國得到的補償與一年前相比。在美國，大約一年前我們失去了一些合同。

We're anniversarying out of those. There were some product launches that were delayed, '22 and '23 that are coming out now. So I will say that moving forward, given the better comps or U.S. and the contract capabilities now in the U.S. along with innovation, the trauma business is going to be in a better position.

我們正在慶祝這些週年紀念。有一些產品的發布被推遲了，'22 和 '23 現在已經發布了。因此，我想說，展望未來，考慮到美國更好的競爭以及美國目前的合同能力以及創新，創傷業務將處於更好的地位。

Foot and ankle has been one of the businesses, frankly, within S.E.T. that we didn't prioritize. We wanted to prioritize upper extremities, SportsMed and CMFT. That being said, I do think there is a couple of product launches that are going to make a difference in the space. So all in all, I do think you'll see better performance. But trauma, foot and ankle are not the key priorities within S.E.T.

坦率地說，足部和腳踝一直是 S.E.T 的業務之一。我們沒有優先考慮。我們希望優先考慮上肢、SportsMed 和 CMFT。話雖這麼說，我確實認為有一些產品的發布將會在這個領域產生影響。總而言之，我確實認為您會看到更好的表現。但外傷、足部和腳踝並不是 S.E.T. 的重點關注事項。

Yes. And to be clear, it doesn't mean that we don't see foot and ankle, trauma and restorative therapies as potentially attractive markets. It's just we want to be disciplined in the way that we're going to invest -- and the -- if you look at the strat plans that we have for upper extremity, CMFT and Sports, they're very attractive. So we're going to focus our investment there.

是的。需要明確的是，這並不意味著我們不認為足部和腳踝、創傷和恢復療法是具有潛在吸引力的市場。只是我們希望在投資方式上遵守紀律——如果你看看我們為上肢、CMFT 和體育制定的策略計劃，它們非常有吸引力。所以我們將把投資集中在那裡。

Out at the end of the day, the individuals running foot and ankle, trauma or restorative therapies, put a plan in place that's attractive, they could become growth drivers. But today, we want to differentiate those growth drivers to non-growth drivers, nothing against any other categories. It's just the plan right now is very attractive in those 3.

歸根結底，那些接受足部和腳踝、創傷或恢復治療的人制定了一個有吸引力的計劃，他們可能會成為增長動力。但今天，我們希望將這些增長動力與非增長動力區分開來，而不是與任何其他類別相區別。只是現在的計劃在這三個中非常有吸引力。

And just on restorative therapy, that was restorative therapies was part of your question, but we anniversary out of the reimbursement change, July of 2023. So you should expect that business to do dramatically better now.

就恢復性治療而言，恢復性治療是您問題的一部分，但我們在 2023 年 7 月是報銷變更的周年紀念日。因此，您應該期望該業務現在會表現得顯著好轉。

All right. Got it. And then just in terms of the supply chain issues, I don't know if it's possible, but is there any way you could quantify the impact either to your revenue growth and/or your margins in the quarter?

好的。知道了。然後就供應鏈問題而言，我不知道這是否可能，但是有什麼方法可以量化對本季度收入增長和/或利潤率的影響？

I think we'll try to stay away from quantifying, it's pretty challenging, actually, because when you talk about supply issues, you always get feedback from the field on what could have happened if you had more supply and you've got to make sure that you're kind of sifting through what's real, what's not. But the fact is it is a governor for us right now, and that's why we continue to say it. What's important, though, is it's a macro-challenge.

我認為我們會盡量避免量化，實際上，這是相當具有挑戰性的，因為當你談論供應問題時，你總是會從現場得到反饋，了解如果你有更多的供應，並且你必須製造更多的供應，可能會發生什麼確保你正在篩選什麼是真實的，什麼不是。但事實上，它現在是我們的州長，這就是我們繼續這麼說的原因。但重要的是，這是一個宏觀挑戰。

There's not a company in orthopedics right now that is not being impacted by supply challenges. So it's impacting everyone. AAOS just did a survey actually with surgeons asking this question and across the board regardless of who they were using, they were experiencing supply challenges.

目前，沒有一家骨科公司沒有受到供應挑戰的影響。所以它影響著每個人。 AAOS 剛剛對外科醫生進行了一項調查，詢問了這個問題，總體而言，無論他們使用誰，他們都面臨著供應挑戰。

Really important thing for us that's built into the guidance that Suky just provided. So that's key. But when I think about that growth driver, the impact it's having on our ability to grow. I think it's important to look at that. That means is getting in the way of our team using new innovation to drive mix benefit and competitive conversions. We truly do believe that it was not a factor. We'd be getting more mix benefit, we'll be getting more competitive conversions because the demand is there.

對我們來說非常重要的事情已經納入 Suky 剛剛提供的指導中。所以這是關鍵。但當我想到這個增長動力時，我會想到它對我們增長能力的影響。我認為看看這一點很重要。這意味著妨礙我們的團隊使用新的創新來推動組合效益和競爭轉化。我們確實相信這不是一個因素。我們將獲得更多的混合效益，我們將獲得更具競爭力的轉換，因為需求就在那裡。

So it's frustrating. We have great momentum in the business, great innovation and supply is in the way of driving that growth. And we believe it's going to continue to be there for a period of time.

所以這很令人沮喪。我們的業務勢頭強勁，偉大的創新和供應正在推動這一增長。我們相信它會繼續存在一段時間。

We'll go next to Robbie Marcus with JPMorgan.

接下來我們將與摩根大通一起討論羅比·馬庫斯。

Congrats on a good quarter. Maybe I could start on margins. If I take the third quarter and fourth quarter commentary that you provided, I have a little trouble getting to the high end of the range. So maybe just speak to some of the pluses and minuses there and what you need to get to the top of the range?

祝賀季度表現良好。也許我可以從邊緣開始。如果我接受你提供的第三季度和第四季度的評論，我很難達到範圍的高端。那麼，也許只是談談那裡的一些優點和缺點，以及你需要什麼才能達到該範圍的頂部？

And then second question, I'll just throw in as well. You have a big gross margin benefit from currency in '23. There's a pretty wide range of operating margin expansion next year or contraction on The Street. Any early thoughts into how we should be thinking about your ability to grow operating margins next year?

然後第二個問題，我也簡單地提出來。 23 年，您可以從貨幣中獲得巨大的毛利率收益。明年，華爾街的營業利潤率將出現相當大的擴張或收縮。關於我們應該如何考慮您明年提高營業利潤的能力，您有什麼早期想法嗎？

Sure, Robbie. Great to talk to you. So one of the biggest drivers in the overall profile in the back half of the year, by the way, we do believe operating margin in the back half will be modestly better than what you saw in the first half. That's largely going to be driven by better revenue, mostly coming from the fourth quarter. Fourth quarter is always our strongest from a dollar perspective, from sales view.

當然，羅比。很高興與你交談。因此，順便說一句，今年下半年整體情況的最大推動因素之一是，我們確實相信下半年的營業利潤率將略好於上半年。這主要是由收入增加推動的，主要來自第四季度。從美元角度和銷售角度來看，第四季度始終是我們最強勁的季度。

The second thing is you're likely going to see a step down in overall operating expenses from the second quarter. That was sort of our high watermark as we were dealing with a number of inflationary pressures. But quite frankly, also investing pretty handsomely against things like R&D, which was up like 19% in the quarter, investing against commercial infrastructure in places like sports and upper extremities to continue to specialize that sales force as well as ASCs.

第二件事是，您可能會看到第二季度總體運營費用有所下降。當我們應對一系列通脹壓力時，這算是我們的高水位線。但坦率地說，我們還對研發等領域進行了相當可觀的投資，本季度增長了約 19%，對體育和上肢等領域的商業基礎設施進行了投資，以繼續使銷售隊伍和 ASC 專業化。

So the 2 common combined things of higher revenue, lower OpEx as we move into the back end of the year is what's going to drive that margin expansion improvement versus the first half.

因此，隨著我們進入今年年底，收入增加和運營支出降低這兩個共同因素將推動利潤率擴張較上半年有所改善。

As we look into 2024, you're right, we did talk about some FX hedge gains this year, which we sized at about 50 basis points on the full year that won't repeat into next year. That will be a headwind, but we're still confident that we can grow operating margins into 2024. It may not be at the same level of 100 basis points that you're seeing this year. But we do believe, as I said earlier, that we can take this sort of high watermark that we are in operating margins that continue to enhance that as we move into 2024.

當我們展望 2024 年時，你是對的，我們確實討論了今年的一些外匯對沖收益，我們將全年的規模確定為約 50 個基點，並且不會在明年重複。這將是一個逆風，但我們仍然有信心能夠將營業利潤率提高到 2024 年。它可能不會達到您今年看到的 100 個基點的水平。但正如我之前所說，我們確實相信，我們可以承受這種高水位，即我們的營業利潤率在進入 2024 年時將繼續提高。

What are some of the building blocks? One, pricing is still a headwind, but we're seeing really great performance. It's not the headwind that it used to be for the company. And what's even more exciting about that is we're truly seeing very strong mix benefit inside the company, and that's coming from our new products and the innovation into the marketplace, which is helping to offset that price erosion. So we think that, that can be a tailwind for us. Secondly, we continue to work aggressively on our site optimization in manufacturing and supply chain, which we think can generate some tailwind in cost of goods as we move forward.

有哪些構建模塊？第一，定價仍然是一個阻力，但我們看到了非常好的表現。這對公司來說不再是以前的逆風了。更令人興奮的是，我們確實看到公司內部非常強大的混合效益，這來自我們的新產品和市場創新，這有助於抵消價格侵蝕。所以我們認為，這對我們來說可能是一個順風車。其次，我們繼續積極致力於製造和供應鏈的現場優化，我們認為這可以在我們前進的過程中產生一些商品成本的推動力。

And then as you move through the rest of the P&L into SG&A, there's still ample opportunity with our Global Business Services agenda that we just started a few short years ago. We've got a completely different culture and mentality when we think about go-to-market and market profitability. Where at one time, it was revenue growth at all costs. And now it's all about revenue growth at the right profitability level and with earnings growing faster. And so there's just those cultural shifts and that discipline is also driving some really nice margin expansion both in the U.S. as well as outside. So these are just a few levers that quite frankly, we've been pulling on already. There's still room to go and why we feel confident that we can take this high watermark for 2023 and grow it into 2024.

然後，當您將損益表的其餘部分轉移到銷售及管理費用時，我們幾年前剛剛啟動的全球商業服務議程仍然存在充足的機會。當我們考慮進入市場和市場盈利能力時，我們有完全不同的文化和心態。曾經一度是不惜一切代價實現收入增長。現在，一切都是為了在適當的盈利水平下實現收入增長，並且盈利增長更快。因此，這些文化轉變和紀律也推動了美國和國外的利潤率的增長。所以坦率地說，這些只是我們已經在努力的一些手段。仍有發展空間，因此我們有信心能夠在 2023 年達到這一高水位，並將其發展到 2024 年。

We'll go next to Rick Wise with Stifel.

我們將和 Stifel 一起去 Rick Wise 旁邊。

And maybe starting off with a couple of the key new product launches that you highlighted. Bryan, you said as you were talking about the 4 pillars of Knee growth that ROSA+ the cementless Knee launch, were -- that was your first comment, your first focus area, taking cementless from mid-teens to 50% over time. Related to that point, where are you in the rollout? When, or are you even at full launch now or what's required? And how do we think about the acceleration of that launch over the next year or 2?

也許可以從您強調的幾個關鍵新產品發布開始。 Bryan，您在談論ROSA+ 無骨水泥膝關節產品的膝關節增長的4 個支柱時說，這是您的第一個評論，您的第一個重點領域，隨著時間的推移，將無骨水泥膝關節從十幾歲左右提高到50%。與這一點相關的是，您的部署處於什麼階段？您什麼時候、或者現在是否全面啟動，或者需要什麼？我們如何看待未來一兩年加速推出的情況？

Thanks, Rick. What I'd say first is just to make sure that I clarify. I'm saying that both ROSA and cementless will move from the mid-teens to 50% plus, 5-0 percent plus. So not just cementless. And they kind of do play off of each other. They benefit each other as they're trying to get adoption in the marketplace. But speaking specifically to cementless, maybe I can pass that to you.

謝謝，瑞克。我首先要說的只是為了確保我能夠澄清。我的意思是，ROSA 和無骨水泥都將從十幾歲左右上升到 50% 以上，5-0% 以上。所以不僅僅是無水泥。他們確實互相競爭。當他們試圖在市場上被採用時，他們會互相受益。但具體到無水泥，也許我可以將其傳遞給您。

Yes, I would say, Rick, that it's early innings, frankly, both for ROSA as well as cementless. We are in what I think is not still a full launch for cementless, given some of the supply constraints. I think as we exit 2023 and early 2024, we'll have as much supply as we need to meaningfully drive the penetration of cementless with a goal of going from 15% to 50%.

是的，我想說，里克，坦率地說，無論是對於羅莎隊還是無水泥隊來說，現在都還處於早期階段。考慮到一些供應限制，我認為我們還沒有全面推出無水泥技術。我認為，當我們退出 2023 年和 2024 年初時，我們將擁有所需的足夠供應，以有意義地推動無水泥的滲透率，目標是從 15% 升至 50%。

I won't say when 50% is going to happen, but that's definitely the North Star. ROSA is the same situation. We launched 2 platforms in Knee. We are about to launch ROSA Partial this summer, a new and improved version of that. We're working actively on next-generation total knee, which will be a meaningful launch going into '24.

我不會說 50% 何時會發生，但那絕對是北極星。 ROSA也是同樣的情況。我們在 Knee 中推出了 2 個平台。我們即將在今年夏天推出 ROSA Partial，這是其新的改進版本。我們正在積極開發下一代全膝關節，這將是 24 年的一次有意義的發布。

We got all kind of ZBEdge add-ons data technology solutions that are going to augment the penetration there. But I would say net-net, both for ROSA, cementless and some of the peripheral launches around those 2 components, we are in the early innings.

我們獲得了各種 ZBEdge 附加數據技術解決方案，這些解決方案將增強那裡的滲透率。但我想說的是，無論是 ROSA、無水泥還是圍繞這兩個組件的一些外圍產品，我們都處於早期階段。

Great. And Bryan, if I could, for a second question, I would like to hear from you your personal priorities. It seems like execution is going well. Ivan did a great job, and the team is doing a great job with the pipeline and execution and driving the business forward, Suky is taking the financial organization in a positive direction. What are your priorities now as you look ahead to the next year or 2? Are you focused on efficiency portfolio? What just -- what are you thinking about and that we should hear about and ask about today?

偉大的。布萊恩，如果可以的話，對於第二個問題，我想听聽您的個人優先事項。看來執行進展順利。 Ivan 做得很好，團隊在管道和執行方面做得很好，推動業務向前發展，Suky 正在帶領金融組織朝著積極的方向發展。展望未來一兩年，您現在的首要任務是什麼？您是否專注於效率組合？你在想什麼，我們今天應該聽到並詢問什麼？

Thanks, Rick. I mean I'll kind of tongue-in-cheek say we're thinking about everything. But obviously, that doesn't get you anywhere you focus. And we've been very clear from the very beginning that we had 3 phases of the transformation of this company. Phase one is always going to be alive, but we're in great shape Phase 2 is kind of what you just said.

謝謝，瑞克。我的意思是我會半開玩笑地說我們正在考慮一切。但顯然，這並不能讓你集中註意力。我們從一開始就非常清楚，我們公司的轉型分為三個階段。第一階段總是存在的，但我們的狀態很好，第二階段就像你剛才所說的那樣。

We have a great innovation pipeline. We're executing from an organic standpoint. We feel very confident in that phase. And now we're squarely in Phase 3, as we've been saying, and the big focus for us is that portfolio transformation that will leverage our balance sheet. And the balance sheet is strong and strengthening us in the prepared remarks, and that is the area of focus for us. How do we continue to move our weighted average market growth forward.

我們擁有出色的創新渠道。我們從有機的角度執行。我們對那個階段非常有信心。正如我們所說，現在我們正處於第三階段，我們的重點是利用我們的資產負債表進行投資組合轉型。在準備好的發言中，資產負債表強勁並增強了我們的實力，這是我們關注的重點領域。我們如何繼續推動加權平均市場增長。

I can tell you we've already made great progress in the focus area here. We've already moved it North. With the balance sheet strength, we expect it to continue to move in the right direction. So that's an area of focus, not just for me but for this entire team.

我可以告訴你，我們已經在重點領域取得了巨大進展。我們已經把它北移了。隨著資產負債表的強勁，我們預計它將繼續朝著正確的方向發展。所以這是一個重點領域，不僅是我，也是整個團隊。

We'll go next to Josh Jennings with TD Cowen.

接下來我們將與 TD Cowen 一起討論喬什·詹寧斯 (Josh Jennings)。

Hi good morning...

早上好...

Do we still have you?

我們還有你嗎？

I think he got electrocuted...

我覺得他觸電了...

No, Josh, we hope you are okay. Katie maybe we can go to the next one in the queue, and then hold Josh back if he dials back.

不，喬什，我們希望你沒事。凱蒂也許我們可以轉到隊列中的下一個，然後在喬希回撥時阻止他。

We'll go next to Jayson Bedford with Raymond James.

我們將和雷蒙德·詹姆斯一起去傑森·貝德福德。

I guess -- I apologize if I missed this, but what was the impact of price in 2Q and of your expectations around price changed at all?

我想——如果我錯過了這一點，我深表歉意，但是第二季度價格的影響以及您對價格的預期發生了什麼變化？

It was about 1% erosion year-over-year in the second quarter. I think in the first quarter -- I think the average is somewhere around [1-2] for the first half of the year. We would expect in the second half or somewhere to be between 100 to 150 basis points of erosion.

第二季度同比下降約 1%。我認為在第一季度——我認為上半年的平均值約為 [1-2] 左右。我們預計下半年或某個時候會出現 100 至 150 個基點的侵蝕。

We're seeing really good traction there for the number of reasons that I've talked about at length previously. But again, I think the really exciting thing is we're starting to see that mix benefit come through from our new product introductions and helping to offset even an improved price erosion profile.

由於我之前詳細討論過的一些原因，我們在那裡看到了非常好的吸引力。但我再次認為，真正令人興奮的是，我們開始看到我們的新產品推出帶來了混合效益，並有助於抵消甚至改善的價格侵蝕狀況。

Okay. Great. And then just secondly, on the supply challenges, are these new issues or the kind of legacy carryover issues? And then Bryan, I think you mentioned that you expect this dynamic to continue for some time. Does the impact lessen with each quarter going forward? And any visibility as to kind of when these issues will abate?

好的。偉大的。其次，關於供應挑戰，這些是新問題還是遺留問題？然後布萊恩，我想你提到你預計這種動態會持續一段時間。未來每個季度影響是否會減弱？這些問題何時會得到緩解？

I'll start by saying that we have not seen anything new. All along, there were really 3 buckets that summarize the problem, materials, labor and sterilization, augmented with, frankly, just put demand plan on aside because the demand that we felt kept getting better and better and better. Sequentially, we've seen improvement. We've seen better forecast accuracy on the demand side. And then as we think about labor, at the Tier 1 level, our labor capabilities are much better than before.

首先我要說的是我們沒有看到任何新的東西。一直以來，實際上有3個桶來總結問題，材料、勞動力和滅菌，坦率地說，只是把需求計劃放在一邊，因為我們感覺到的需求不斷變得越來越好。接下來，我們看到了進步。我們看到需求方面的預測準確性更高。然後當我們考慮勞動力時，在一級層面，我們的勞動力能力比以前要好得多。

We're hiring people in our sites. When you think about sterilization, we had the right strategies, materials continue to be a challenge, but again, it's much better than before. So I would say improvement versus the past. And sequentially, we continue to see improvement across both supply and demand.

我們正在我們的網站上招聘人員。當你想到滅菌時，我們有正確的策略，材料仍然是一個挑戰，但同樣，它比以前好得多。所以我想說與過去相比有所進步。接下來，我們繼續看到供應和需求都在改善。

I mean the challenge, it's a fixed equation, right? I mean as you start to improve as we would expect in materials, labor and sterilization because we've put great planning around that, as demand continues to be strong, it's going to delay supply recovery. And so that's what we're seeing is we're seeing a great dynamic strength in the marketplace, better traction in our new innovation than we even expected, but that puts pressure on that equation, and it pushes the supply challenges out.

我的意思是挑戰，它是一個固定方程，對吧？我的意思是，當材料、勞動力和滅菌方面開始像我們預期的那樣改善時，因為我們已經圍繞這些進行了周密的規劃，隨著需求持續強勁，這將延遲供應恢復。因此，我們所看到的是，我們看到市場上存在巨大的動態力量，我們的新創新的牽引力比我們預期的更好，但這給這個方程式帶來了壓力，並推動了供應挑戰。

Thanks so much, Jayson.

非常感謝，傑森。

We'll go next to Kyle Rose with Canaccord.

我們將與 Canaccord 一起前往凱爾·羅斯 (Kyle Rose) 旁邊。

Suky, on -- just circling back on gross margins, strong in 2023, obviously, you walked through some of those benefits. I guess just help us understand maybe how much of an impact inflation in the supply chain has been on underlying gross margins? I mean I understand the positive tailwinds that you've outlined earlier. But how much have you truly been offsetting?

Suky，剛才談到 2023 年的毛利率，顯然，您已經了解了其中的一些好處。我想只是幫助我們了解供應鏈中的通貨膨脹對潛在毛利率的影響有多大？我的意思是，我理解您之前概述的積極推動因素。但你真正抵消了多少？

And I guess just trying to understand how much -- when you talk about supply chain challenges and increased unit costs and wages, are we still -- is there a potential to see a second shoe drop? And I'm just kind of trying to understand as inventory turns flows through the business if and when we'll actually ever see that impact through the P&L?

我想只是想了解——當你談論供應鏈挑戰以及增加的單位成本和工資時，我們仍然——有多少可能看到第二次鞋子掉落？我只是想了解庫存周轉率在整個業務中的流動是否以及何時我們會真正通過損益表看到這種影響？

And then secondly, let's talk about returning to a normalized operating environment. I think we all understand it's been a dramatic 3 to 4 years. But I guess just -- when is it fair to start thinking about when we will be in that more of a normalized operating environment, whether it's supply challenges the industry is facing, staffing challenges. Just how should we think about actually getting step back to that mid-single digits?

其次，我們來談談恢復正常化的運營環境。我想我們都知道這是戲劇性的三四年。但我想，什麼時候開始考慮我們什麼時候會處於更加正常化的運營環境，無論是行業面臨的供應挑戰還是人員配置挑戰。我們應該如何考慮真正回到中間個位數呢？

Yes, sure. Kyle, thanks for the question. So first, on gross margin, from an inflationary standpoint, recall that we have about 100 basis points from '22 that's capitalized and hitting our P&L this year, and we're seeing that come through, that's happening.

是的，當然。凱爾，謝謝你的提問。首先，就毛利率而言，從通脹的角度來看，我們今年的損益表比 22 年資本化了約 100 個基點，我們看到這種情況正在發生。

In addition, we are seeing some incremental inflationary pressure, new pressure 2023, primarily related to continued spot buying with some raw materials around packaging, (inaudible) some of our metals that we use, but we're also seeing it in really the cost to serve. What do I mean by that, really around the need to have to shift product a lot more than you might have to in a stable supply environment. That's one area of incremental inflation or higher costs that we're seeing. Second is we've made the decision to actually pay incremental incentives to our commercial field sales force because we know how challenging it is out in the marketplace.

此外，我們看到了一些增量通脹壓力，即2023 年的新壓力，主要與包裝周圍一些原材料的持續現貨購買有關，（聽不清）我們使用的一些金屬，但我們也從實際成本中看到了這一點服務。我的意思是，實際上需要比在穩定的供應環境中更多地轉移產品。這是我們所看到的通脹增量或成本上升的領域之一。其次，我們決定實際向我們的商業現場銷售人員支付增量激勵，因為我們知道市場上的挑戰有多大。

Dealing with these supply challenges, we've been incredibly impressed with how they've been responding. So these are a couple of elements that are also flowing into the P&L. By the way, we're offsetting those and investing into business while increasing operating margin for this year. So the company and the team have been incredibly disciplined in the backdrop of better revenue and still dropping very, very substantial operating margin expansion.

在應對這些供應挑戰時，他們的應對方式給我們留下了深刻的印象。因此，這些因素也會流入損益表中。順便說一句，我們正在抵消這些影響並投資於業務，同時增加今年的營業利潤率。因此，在收入增加的背景下，公司和團隊一直非常自律，但營業利潤率擴張仍然大幅下降。

As we move into next year, there could be some of this incremental inflationary pressure that we're seeing this year that makes its way into 2024. It's going to be nowhere near what we saw happen in '22 into '23. It will be much more modest.

當我們進入明年時，我們今年看到的這種增量通脹壓力可能會持續到 2024 年。這將與我們在 22 世紀到 23 世紀所看到的情況相去甚遠。它將更加謙虛。

And like I said, I think we have more levers to help offset that as we move into 2024. But again, I'm not going to give guidance on 2024 and exactly what gross margin or operating margin looked like. But there are some moving parts there. That will be potentially another modest headwind. But again, we have a number of tailwinds to help offset things returning to a normalized market.

就像我說的，我認為隨著我們進入 2024 年，我們有更多的手段來幫助抵消這一影響。但同樣，我不會提供有關 2024 年以及毛利率或營業利潤率的具體指導。但那裡有一些活動部件。這可能會是另一個溫和的阻力。但同樣，我們有許多有利因素來幫助抵消市場回歸正常化的影響。

Clearly, we're not there yet. Revenue growth may look and feel normal, but the underlying dynamics are still not normal. We don't believe, at least standing where we are today, at least the beginning part of 2024 that we're going to be there. It's a long way away.

顯然，我們還沒有做到這一點。收入增長可能看起來和感覺上都很正常，但潛在的動態仍然不正常。我們不相信，至少從今天的情況來看，至少在 2024 年年初，我們會達到這樣的水平。距離還很遠。

We'll see where we get to in 2024. But once we do get to that sort of normalized growth, we do believe that we can sustainably hit that 4-plus or mid-single-digit growth profile that I talked about earlier.

我們將看到2024 年我們會達到什麼水平。但一旦我們確實實現了這種正常化增長，我們確實相信我們可以可持續地達到我之前談到的4 位數以上或中等個位數的增長狀況。

All right. Katie, I think we might have time for one last question in the queue.

好的。凱蒂，我想我們可能有時間回答隊列中的最後一個問題。

We'll go next to Matt Miksic with Barclays.

接下來我們將與巴克萊銀行的馬特·米克西奇一起討論。

So just a couple of follow-ups. One on margins. And I know there's been a fair amount of talk about on the call and progress in terms of driving leverage commitments to leverage this year. I was wondering if we could sort of zoom out and think about where margins were pre-pandemic in that kind of like low 30s range? If you could remind us, is that -- is that a target to get back to and maybe the time line for getting there? And then just one quick follow-up on the Persona iQ, if I could.

所以只有幾個後續行動。一個在邊緣。我知道，在電話會議上進行了大量討論，並在今年推動槓桿承諾方面取得了進展。我想知道我們是否可以縮小範圍，思考一下大流行前的利潤率在 30 多歲的範圍內？如果你能提醒我們，那是——這是一個要回到的目標，也許是達到目標的時間線？如果可以的話，然後對 Persona iQ 做一個快速跟進。

Yes. So the margins in the low 30% range. I'm not sure what you're referring to there, Matt. Maybe just out there the merger of Zimmer and Biomet. But since then, those margins were obviously impacted by a lack of investment in supply chain, commercial infrastructure, et cetera.

是的。所以利潤率在 30% 左右。我不確定你指的是什麼，馬特。也許只是 Zimmer 和 Biomet 的合併。但從那時起，這些利潤顯然受到供應鏈、商業基礎設施等方面投資缺乏的影響。

So again, I don't know that, that's the right reference point -- what I can tell you is that pre-pandemic to where we are now, we are expanding margins, operating margins as we continue to drive top line revenue growth and investment in the company. So feel good about where we are and where we're headed moving forward. Sorry, your second question?

再說一次，我不知道這是正確的參考點——我可以告訴你的是，從大流行前到我們現在的情況，我們正在擴大利潤率、營業利潤率，因為我們繼續推動營收增長，對公司的投資。因此，對我們所處的位置和前進的方向感到滿意。抱歉，你的第二個問題？

Sure. Just a follow-up on Persona iQ. I think the number, I think maybe that was mentioned earlier was something like 1,000 implants. I mean that's a pretty -- it's a pretty small percentage of total maybe 1%, less than 1% of your total implants a year. And I just want to get a sense of at what level do some of the data start coming through? Is it a couple of thousand implants? Is it 300 to 500 implants? When do you expect seeing some of the results you mentioned earlier in the call?

當然。只是 Persona iQ 的後續。我想這個數字，我想可能是之前提到的，大約是 1,000 個植入物。我的意思是，這相當小——佔總數的比例很小，可能是 1%，不到一年總植入量的 1%。我只是想了解一些數據在什麼級別開始出現？是幾千個植入物嗎？是300到500個種植體嗎？您預計什麼時候會看到您之前在電話會議中提到的一些結果？

Yes. Thank you, Matt. First and foremost, we don't disclose the number of patients, but I'll tell you, it's far greater than 1,000 patients. When are we done with the limited market release? I think we're about to complete that? The size matters more for certain claims than others, but I will tell you, we've got enough of a sample size to be able to engage in a full market release by 2024.

是的。謝謝你，馬特。首先，我們不透露患者數量，但我告訴你，遠遠超過1000名患者。我們什麼時候完成有限的市場發布？我想我們即將完成這個任務了？對於某些聲明來說，規模比其他聲明更重要，但我會告訴您，我們有足夠的樣本量，能夠在 2024 年之前進行完整的市場發布。

What's the expectation going forward, this is going to be a flagship product for Zimmer Biomet. We plan to see meaningful penetration of this technology. First in Knees, then in Hips and then at some point in Shoulders as well. What's the right penetration? Again, we won't disclose that. But given the unique technology, we will leverage this to the fullest.

未來的期望是什麼，這將成為 Zimmer Biomet 的旗艦產品。我們計劃看到這項技術的有意義的滲透。首先是膝蓋，然後是臀部，然後在肩膀的某個位置。怎樣的滲透才是正確的呢？再次強調，我們不會透露這一點。但鑑於獨特的技術，我們將充分利用這一點。

Thanks, Ivan, and Matt thanks for your question. I think we're almost at the bottom of the hour. I'll actually turn it over to Bryan just for some closing remarks.

謝謝伊万和馬特，謝謝你的問題。我想我們已經快到最後時刻了。實際上我會把它交給布萊恩做一些結束語。

Just maybe a quick summary to on what -- but you were just talking about Suky, when we think about a normalized market. And we're saying 2024 in our view, is not going to be normalized for 2 factors. You're still going to have backlog that we're going to have to pay attention to. We would deem backlog is a neutral to potentially negative depending on whether it stays the same or decreases. We don't think there's going to be an increase in it.

也許只是一個快速總結——但當我們考慮正常化市場時，你剛剛談論的是 Suky。我們認為，由於兩個因素，2024 年不會實現正常化。您仍然會有積壓的訂單，我們必須注意這一點。我們認為積壓是中性到潛在的負面影響，具體取決於它是保持不變還是減少。我們認為它不會增加。

And the second one is supply. That is going to be neutral to positive because as we continue to see supply benefits that will create a tailwind for next year. So those are pretty big variables that would tell us that we don't have a normal year in 2024, but they're offsetting. So that's the reason why we think 2024, even though "not normal" could look a lot like a normal year from a growth perspective.

第二個是供應。這將是中性到積極的，因為我們繼續看到供應效益將為明年創造有利條件。因此，這些都是相當大的變量，它們會告訴我們 2024 年不會是正常的一年，但它們正在抵消。這就是我們認為 2024 年的原因，儘管從增長的角度來看，“不正常”可能看起來很像正常的一年。

I just want to make sure that, that's clear. And then just going to sum it up, first of all, thanks again for joining us this morning. And I think it's pretty clear in the way that we talk about the business right now that we're not just excited about where we are as a company, but the future of this company. And I think that's really important.

我只是想確保這一點很清楚。然後總結一下，首先，再次感謝您今天早上加入我們。我認為，從我們現在談論業務的方式中可以清楚地看出，我們不僅對我們作為一家公司的現狀感到興奮，而且對這家公司的未來感到興奮。我認為這非常重要。

We've already made disciplined portfolio decisions that have increased the weighted average market growth of this business that's already happened, and that gives us confidence in the growth of the organization, not just today but in the future. And the balance sheet says that we're going to continue to be able to strengthen our position in those fast-growth markets and we will absolutely do that. That is Phase 3 of the transformation. And the innovation pipeline as Ivan continues to talk about is as strong as it's ever been, and that gives us the ability to drive mix benefit, pricing stability and competitive conversions. And when supply gets out of the way, that will even happen more.

我們已經做出了嚴格的投資組合決策，這些決策提高了該業務已經發生的加權平均市場增長，這讓我們對組織的增長充滿信心，不僅是在今天，而且是在未來。資產負債表顯示，我們將繼續加強我們在那些快速增長市場中的地位，我們絕對會這樣做。這是轉型的第三階段。伊万繼續談到的創新渠道與以往一樣強大，這使我們有能力推動組合效益、定價穩定性和競爭性轉換。當供應中斷時，這種情況甚至會發生更多。

So we're very excited about it. And I've been doing this long enough to know when the team has got that skip in their step. And they've got the ammunition to be able to drive the performance of the business sustainably. And we are in that place. Okay.

所以我們對此感到非常興奮。我已經這樣做了足夠長的時間來知道團隊何時能夠邁出這一步。他們擁有能夠可持續地推動業務績效的彈藥。我們就在那個地方。好的。

With that, I'll go ahead and close it out, and thanks for joining us.

至此，我將繼續結束它，感謝您加入我們。

Thanks, everyone. We'll talk to you soon. And obviously, if you have any further questions, please don't hesitate to reach out to the IR team.

感謝大家。我們很快就會和你談談。顯然，如果您還有任何其他問題，請隨時聯繫 IR 團隊。

Thank you for participating in today's conference call. You may now disconnect.

感謝您參加今天的電話會議。您現在可以斷開連接。