Zimmer Biomet Holdings Inc (ZBH) 2024 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Zimmer Biomet First Quarter 2024 Earnings Conference Call. (Operator Instructions). As a reminder, this conference is being recorded today, May 2, 2024. Following today's presentation, there will be a question-and-answer session. (Operator Instructions).

早安，女士們、先生們，歡迎參加 Zimmer Biomet 2024 年第一季財報電話會議。 （操作員說明）。謹此提醒，本次會議將於今天（2024 年 5 月 2 日）進行錄製。 （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訊和行政官 Keri Mattox。請繼續。

Thank you, operator, and good morning, everyone. Welcome to Zimmer Biomet's First Quarter 2024 Earnings Conference Call. Joining me today are Ivan Tornos, our President and CEO; and CFO and EVP Finance, Operations and Supply Chain, Suky Upadhyay.

謝謝接線員，大家早安。歡迎參加 Zimmer Biomet 2024 年第一季財報電話會議。今天加入我的是我們的總裁兼執行長 Ivan Tornos；財務長兼財務、營運和供應鏈執行副總裁 Suky Upadhyay。

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

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有重大差異。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聲明的義務。除了此類前瞻性陳述的固有限制之外，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。

Additionally, the discussions on this call will include certain non-GAAP financial measures, some of which are forward-looking non-GAAP financial measures. Reconciliation of these measures to the most directly comparable GAAP financial measures and an explanation of our basis for calculating these measures is included within our Q1 earnings release which can be found on our website, zimmerbiomet.com. With that, I'll turn the call over to Ivan. Ivan?

此外，本次電話會議的討論將包括某些非公認會計原則財務指標，其中一些是前瞻性非公認會計原則財務指標。這些指標與最直接可比較的 GAAP 財務指標的調整以及我們計算這些指標的基礎的解釋包含在我們的第一季度收益發布中，您可以在我們的網站 zimmerbiomet.com 上找到該發布。說完，我會把電話轉給伊凡。伊万？

Thank you, Keri, and thank you, everyone, for joining the call here this morning. I'd like to start today the way that I typically do by taking a moment to recognize and to show my gratitude to the 18,000 Zimmer Biomet team members across the globe, who each and every day work relentlessly in driving our mission forward. Simply put them, I'm very proud of each and every one of you. Thank you for your dedication, for your commitment, resilience and for your strong performance to start off this year 2024.

謝謝 Keri，也謝謝大家今天早上加入我們的電話會議。我想像往常一樣從今天開始，花一點時間向全球 18,000 名 Zimmer Biomet 團隊成員表示感謝，他們每天都在不懈地努力，推動我們的使命向前發展。簡而言之，我為你們每一個人感到非常自豪。感謝你們的奉獻、承諾、堅韌以及你們在 2024 年開始時的強勁表現。

It is truly this great workforce and the culture that we have here in place at Zimmer Biomet that gives me -- gives us confidence behind the financial commitments that we're making. Given the fact that we have a very robust Investor Day coming up in just a few weeks, I will keep my opening remarks short with the goal of moving quickly into today's Q&A session. I'll touch on 3 key areas briefly.

確實，Zimmer Biomet 的優秀員工隊伍和文化給了我對我們正在做出的財務承諾的信心。鑑於幾週後我們將迎來一個非常強大的投資者日，我將保持簡短的開場白，目標是快速進入今天的問答環節。我將簡要介紹 3 個關鍵領域。

First, I'm going to provide some general comments on the results in the quarter versus our own expectations. Secondly, I'll cover the drivers of the performance, and we'll touch on why we believe that these drivers are sustainable. And then lastly, I'll close with a brief summary on our progress against our 3 strategic priorities, which have been discussing since day 1, those being people and culture, operational excellence and diversification innovation.

首先，我將對本季的業績與我們自己的預期進行一些一般性評論。其次，我將介紹績效的驅動因素，我們將討論為什麼我們相信這些驅動因素是可持續的。最後，我將簡要總結我們在 3 個策略重點方面的進展，這些策略重點從第一天起就一直在討論，即人員和文化、卓越營運和多元化創新。

Starting with the quarterly results. Overall, we are very encouraged with our Q1 performance which was ahead of our own expectations, driven by healthy end markets, combined with the strong execution across the organization globally. We ended the quarter continuing the momentum that we saw in 2023, delivering 4.4% constant currency revenue growth, while overstepping a sizable day rate headwind and facing rather difficult comps versus a year ago.

從季度業績開始。總體而言，在健康的終端市場以及整個組織在全球的強勁執行力的推動下，我們第一季的業績超出了我們自己的預期，對此我們感到非常鼓舞。本季結束時，我們延續了 2023 年的勢頭，實現了 4.4% 的恆定貨幣收入增長，同時克服了相當大的日利率阻力，並面臨著與一年前相比相當困難的競爭。

In fact, it is reassuring to see that on a day rate adjusted basis, our growth for the quarter was greater than 6% with several areas of the business and geographies contributing to such solid results. In addition to the sound revenue performance, we drove adjusted margin expansion and grew adjusted earnings even while our effective tax rate increased over 200 basis points. These results to start 2024 and give us great confidence that Zimmer Biomet will deliver 5% to 6% constant currency revenue growth in the year while driving sizable adjusted operating margin expansion. So pleased to reaffirm our guidance for the year.

事實上，令人欣慰的是，以日費率調整後，我們本季的成長率超過 6%，多個業務領域和地區為如此穩健的業績做出了貢獻。除了良好的收入表現外，即使我們的有效稅率增加了 200 個基點以上，我們也推動了調整後利潤率的擴張和調整後收益的成長。 2024 年開始的這些結果讓我們充滿信心，Zimmer Biomet 將在今年實現 5% 至 6% 的恆定貨幣收入成長，同時推動調整後營業利潤率大幅擴張。很高興重申我們今年的指導。

This, in turn, will enable mid- to high single-digit adjusted earnings growth while realizing our commitment of seeing free cash flow growing faster than earnings. Suky is going to provide more color around these areas later, but a strong performance in the quarter. And again, reaffirming guidance for the year. Net-net, it's encouraging to see us exiting Q1 of 2024 with a revenue growth run rate in the mid-single-digit range, which is consistent with where we exited the second half of 2023.

反過來，這將實現中高個位數的調整後獲利成長，同時實現我們看到自由現金流成長快於獲利的承諾。 Suky 稍後將圍繞這些領域提供更多色彩，但本季表現強勁。再次重申今年的指導。 Net-net，令人鼓舞的是，我們在 2024 年第一季結束時的營收成長率處於中個位數範圍，這與我們在 2023 年下半年結束時的情況一致。

With new products -- new product introduction ramping later in the year, we like what we see in terms of sustainability in our growth trajectory which we have said all along will accelerate in the second half of 2024. Key drivers behind our Q1 results came from both a macro and micro standpoint, starting with macro factors or end markets, as we've been saying all along, remain very healthy, driven by high levels of patient demand due to demographic shifts.

隨著今年稍後新產品的推出，我們對成長軌蹟的可持續性感到滿意，我們一直表示，這一增長將在 2024 年下半年加速。一直以來所說的那樣，從宏觀因素或終端市場開始，無論是宏觀還是微觀角度，在人口結構變化導致的高水平患者需求的推動下，仍然非常健康。

The continued shift today we see here in the U.S. is also a tailwind and across the board in the industry, we've seen better surgical outcomes and technological advancements, which are driving more pace in demand. On top of that, you've got to improve pricing dynamics. And to that end, pleased to report that pricing in the quarter was about flat as opposed to the 200 to 300 basis points of price erosion that this space, this industry has seen historically.

今天我們在美國看到的持續轉變也是一股順風，在整個產業中，我們看到了更好的手術結果和技術進步，這推動了需求的成長。最重要的是，你必須改善定價動態。為此，我們很高興地報告，本季度的定價基本上持平，而不是該領域、該行業歷史上出現的 200 到 300 個基點的價格侵蝕。

From a macro standpoint, the main enablers of our Q1 results were the adoption of ROSA technology globally, with a correlated pull-through of Persona Knee. We also saw some execution of growth drivers within S.E.T., particularly in shoulders, within sports medicine and in our CMFT, craniomaxillofacial thoracic business in conjunction with rapid adoption of Persona OsseoTi, that is our cementless platform, which is quickly gaining share in the markets where we have launched the product.

從宏觀角度來看，我們第一季業績的主要推動因素是 ROSA 技術在全球的採用，以及 Persona Knee 的相關拉力。我們也看到S.E.T. 內部執行了一些成長動力，特別是在肩部、運動醫學和我們的CMFT、顱顏面胸外科業務中，以及Persona OsseoTi（我們的非骨水泥平台）的快速採用，該平台正在迅速獲得以下市場的份額：我們已經推出了該產品。

As we enter the second half of 2024, these new product introductions as well as other new product entries will become more meaningful from a revenue growth standpoint with Persona OsseoTi entering then a full launch status, seeing higher realization of HAMMR or surgical Impactor, which we recently launched and also gaining traction with ROSA Shoulder, which we started doing cases recently here in the U.S.

隨著我們進入2024 年下半年，從收入成長的角度來看，這些新產品的推出以及其他新產品的引入將變得更有意義，Persona OsseoTi 將進入全面發布狀態，看到HAMMR 或外科衝擊器的更高實現，我們最近推出的 ROSA Shoulder 也受到了關注，我們最近開始在美國做案例。

On top of that, we're going to be entering the market with our triple-taper hip stem, that's Z1, which is going to allow us to better compete in the direct anterior hip category. So really excited about the completed portfolio in hips and the upcoming launch, FDA approved now for Z1 hip stem.

最重要的是，我們將帶著我們的三錐度髖關節柄 Z1 進入市場，這將使我們能夠在直接前髖關節類別中更好地競爭。 FDA 對髖關節的完整產品組合和即將推出的產品感到非常興奮，FDA 現已批准 Z1 髖關節柄。

In addition to driving successful 2024 annual results, we are committed to the 3 strategic priorities that I outlined in my first earnings call as the CEO in November 2023. This, no doubt, will enable long-term success for the organization. I continue to repeat these 3 priorities over and over at every Zimmer Biomet meeting around the world. And I can tell you that they are resonating with the audience as the absolute must do's for the long-term success of the organization.

除了推動2024 年年度業績取得成功之外，我們還致力於實現我在2023 年11 月作為首席執行官的第一次財報電話會議中概述的3 項戰略重點。帶來長期成功。在世界各地的每次 Zimmer Biomet 會議上，我都會一遍又一遍地重複這 3 個優先事項。我可以告訴你，他們正在引起觀眾的共鳴，這是組織長期成功的絕對必要條件。

Once again, these 3 imperatives are people and culture, number one; operational excellence, number 2; and innovation and diversification number 3. I would like now to quickly provide you with an update in terms of key progress across these 3 areas. Further detail will come during our May 29 Investor Day in New York City.

再次強調，這三個要素是：人與文化，第一；卓越運營，第二名；第三，創新和多元化。更多細節將於 5 月 29 日在紐約市舉行的投資者日期間公佈。

First, in the area of people and culture, we continue to operate Zimmer Biomet with best-in-class engagement metrics and low employee attrition. We have been recognized across different areas when it comes to people and culture. And recently, we've been showcased in various publications, including Newsweek, Great Places to Work and Forbes. In the area of people and culture, it's worth noting also that our restructuring program, which we announced a quarter ago, has now been implemented almost entirely with no major disruptions to report.

首先，在人員和文化領域，我們繼續以一流的敬業度指標和較低的員工流失率來營運 Zimmer Biomet。在人員和文化方面，我們已獲得不同領域的認可。最近，我們在各種出版物中都得到了展示，包括《新聞周刊》、《最佳工作場所》和《富比士》。在人員和文化領域，也值得注意的是，我們一個季度前宣布的重組計劃現在幾乎完全實施，沒有重大干擾報告。

We have realized substantial benefits post this initiative, including realizing cost savings earlier than initially expected as well as achieving increased operational agility and enhance accountability.

這項措施後，我們已經實現了巨大的好處，包括比最初預期更早實現成本節約，以及提高營運靈活性和加強問責制。

In the second area of operational excellence, we've made robust progress in implementing our enhanced inventory management programs around the world. Working intensely with third-party firms, we develop a plan we're executing against the plan. We remain committed to a meaningful improvement in DOH in the year 2024 and in years to come. Again, more color in that regard during our Investor Day.

在卓越營運的第二個領域，我們在全球實施強化庫存管理計畫方面取得了強勁進展。我們與第三方公司密切合作，制定了一項計劃並根據該計劃執行。我們仍致力於在 2024 年及未來幾年對衛生部進行有意義的改進。在我們的投資者日期間，這方面的內容再次更加豐富。

In operational excellence, we have also established core initiatives around best-in-class product launches to ensure that these new product introductions gained traction sooner than expected and we launched these products in a better way than we have launched in the past. This is beyond critical for Zimmer Biomet as we continue to deliver a rapid cadence of product launches with plans to release more than 40 new products in the next 24 to 36 months. One final comment in operational excellence in the area of pricing, we've made structural changes to further enhance the pricing strategy that we put in place over the last several quarters.

在卓越營運方面，我們還圍繞一流的產品發布製定了核心計劃，以確保這些新產品的推出比預期更早獲得關注，並且我們以比過去更好的方式推出這些產品。這對 Zimmer Biomet 來說至關重要，因為我們將繼續快速推出產品，並計劃在未來 24 至 36 個月內發布 40 多種新產品。關於定價領域卓越營運的最後一點評論是，我們進行了結構性變革，以進一步加強我們在過去幾季實施的定價策略。

Moving on to the third and final strategic priority. In the area of innovation and diversification, we're making solid progress. We continue to see strong traction in key brands such as Persona OsseoTi. I mentioned already gaining share in the markets where we have launched. We've seen progress with ROSA. We continue to gain momentum with Signature ONE planning guides in the shoulder space, and we love what we're seeing with our Embody soft tissue franchise. CMFT continues to deliver new product introductions, gaining share in the markets where we partake. And I'm very excited about the new product introductions that we have seen and we'll continue to see in our ASC portfolio in the U.S.

繼續第三個也是最後一個戰略重點。在創新和多元化領域，我們正在取得紮實進展。我們繼續看到 Persona OsseoTi 等關鍵品牌的強勁吸引力。我提到已經在我們推出的市場中獲得了份額。我們已經看到 ROSA 的進展。我們繼續透過肩部空間的 Signature ONE 規劃指南獲得動力，並且我們喜歡我們在 Embody 軟組織系列中看到的效果。 CMFT 不斷推出新產品，在我們參與的市場中贏得份額。我對我們已經看到的新產品的推出感到非常興奮，我們將繼續在美國的 ASC 產品組合中看到這些新產品的推出。

We've also made tremendous strides in new products with a more focused pipeline that today as of Q1 2024, has twice the dollar value that we had at the end of 2018. So the dollar value of the pipeline in innovation is twice what it was 4 or 5 years ago. Worth reminding everyone that north of 80% of these products in the pipeline, residing markets growing above 4%, and many of them are accretive from a gross margin standpoint. So we continue our commitment of innovating from a customer-centric standpoint, but also innovating to see incremental profitability and an increased WAMGR profile.

我們在新產品方面也取得了巨大進步，擁有更集中的產品線，截至 2024 年第一季度，其美元價值是 2018 年底的兩倍。年前。值得提醒大家的是，除了 80% 的產品正在醞釀中之外，國內市場的成長率超過 4%，而且從毛利率的角度來看，其中許多產品都是在成長的。因此，我們持續致力於從以客戶為中心的角度進行創新，同時也透過創新來實現獲利能力的增量和 WAMGR 形象的提高。

In addition to driving results in core markets, we're also focused on diversifying our portfolio into more attractive, faster-growth end markets with the goal of increasing our WAMGR, Weighted Average Market Growth Rate. We have made significant progress over the past several years, balance it through what it is today. And this fact in addition to the confidence around future free cash flow generation, give us the optionality and the firepower to execute on the right deals at the right time, the most importantly, meet our internal hurdles from both a financial and a strategic perspective.

除了推動核心市場取得成果外，我們還致力於將我們的投資組合多元化到更具吸引力、成長更快的終端市場，目標是提高我們的 WAMGR（加權平均市場成長率）。我們在過去幾年中取得了重大進展，透過今天的情況來平衡它。這一事實除了對未來自由現金流產生的信心之外，還為我們提供了在正確的時間執行正確的交易的選擇權和火力，最重要的是，從財務和戰略角度應對我們的內部障礙。

So again, lots going on inorganically potentially as well as organically with the size of the pipeline. While we have flexibility in the size of the deals to come, we continue to favor the smaller tuck-ins to midsize deals. That's up to $2 billion in acquisition price that become EPS neutral within 2 years and that from a ROIC standpoint, return on invested capital, will deliver upper single digit to low double digit within 5 years.

再說一次，隨著管道的規模，許多潛在的和有機的事情正在發生。雖然我們對未來交易的規模具有靈活性，但我們仍然傾向於較小規模的中型交易。收購價格高達 20 億美元，將在 2 年內實現 EPS 中性，從投入資本回報率的角度來看，投資資本回報率將在 5 年內實現較高的個位數到較低的兩位數。

As I mentioned earlier, we're very encouraged with our Q1 performance, a quarter in where we grew 4.4% in constant currency, north of 6% in day rate while overcoming a number of head winds and tough comps. It is this quarter results from the first quarter 2024 that give us a strong confidence that in the year 2024, we will realize our guidance of delivering 5% to 6% in revenue, growing 100 to 200 basis points above market while delivering earnings growing faster than revenue and delivering free cash flow above the earnings growth.

正如我之前提到的，我們對第一季的業績感到非常鼓舞，以固定匯率計算，本季我們成長了4.4%，以日成長率計算超過6%，同時克服了一些不利因素和嚴峻的競爭。正是 2024 年第一季的本季業績讓我們充滿信心，在 2024 年，我們將實現營收成長 5% 至 6% 的指導，比市場成長 100 至 200 個基點，同時實現獲利更快成長高於收入，並提供高於獲利成長的自由現金流。

This is the commitment that we're making for 2024, and it's a commitment that we're going to reiterate in our Investor Day for years to come. Before closing the call, I'd like to announce that Keri Mattox has made a decision to depart from Zimmer Biomet at the end of May. Keri has been a trusted partner and a very close collaborator and friend on this journey and has enabled great things for Zimmer Biomet in her 4-plus years here with ZB. She's going to be missed, and we wish her the best in her future endeavors. A search for a Head of IR position is in progress with a leading executive search firm, and we hope to announce Keri's replacement here very soon. Zach is going to continue to lead IR interactions for Zimmer Biomet. So a plan for continuity is in place.

這是我們為 2024 年所做的承諾，也是我們將在未來幾年的投資者日重申的承諾。在結束通話之前，我想宣布 Keri Mattox 已決定在 5 月底離開 Zimmer Biomet。 Keri 是這趟旅程中值得信賴的合作夥伴、非常親密的合作者和朋友，在 ZB 工作的 4 年多時間裡，她為 Zimmer Biomet 帶來了偉大的成就。我們會想念她，我們祝福她在未來的努力中一切順利。一家領先的獵人頭公司正在尋找 IR 主管職位，我們希望很快能宣布 Keri 的繼任者。 Zach 將繼續領導 Zimmer Biomet 的 IR 互動。因此，連續性計劃已經到位。

In conclusion, we're very proud of how far we have come as an organization and are even more excited about where we can go. Strong confidence on the year 2024. We continue to make commitments and deliver on those commitments as evidenced by these results and as evidenced by the new product introductions commitment that we made and we're realizing. I love the fact that we are impacting the lives of millions of patients around the globe, and I'm inspired by the fact that my team mates are living the Zimmer Biomet mission of alleviating pain and improving the quality of life for people around the world. And with that, I'll turn the call over to Suky. Suky?

總而言之，我們對我們作為一個組織所取得的進步感到非常自豪，並且對我們可以前進的方向感到更加興奮。對 2024 年充滿信心。我喜歡我們正在影響全球數百萬患者的生活，我的隊友們正在履行 Zimmer Biomet 的使命，即減輕世界各地的人們的痛苦並提高他們的生活質量，這讓我深受鼓舞。然後，我會將電話轉給 Suky。蘇基？

Thanks, and good morning, everyone. As Ivan mentioned, we had another good quarter driven by healthy end markets and solid execution across the organization. Overall, we remain on track to deliver on our 2024 financial guidance with mid-single-digit constant currency revenue growth, adjusted operating margin expansion and over $1 billion of free cash flow. Assuming current market conditions, this is a financial profile that we believe is durable going forward.

謝謝，大家早安。正如伊凡所提到的，在健康的終端市場和整個組織穩健的執行力的推動下，我們又度過了一個美好的季度。總體而言，我們仍有望實現 2024 年的財務指引，實現中個位數的恆定貨幣收入成長、調整後的營業利潤率擴張以及超過 10 億美元的自由現金流。假設當前的市場狀況，我們認為這是一個可持續發展的財務狀況。

Moving to Q1 results. Unless otherwise noted, my statements will be about the first quarter of 2024 and how it compares to the same period in 2023, and my commentary will be on a constant currency and adjusted operating basis. Net sales were $1.889 billion, an increase of 3.2% on a reported basis and an increase of 4.4%, excluding the impact of foreign currency. Additionally, we had a selling day headwind of about 200 basis points that impacted all regions and product categories at about the same level.

轉向第一季的結果。除非另有說明，我的陳述將涉及 2024 年第一季及其與 2023 年同期的比較，我的評論將基於固定匯率和調整後的營運基礎。淨銷售額為 18.89 億美元，按報告計算成長 3.2%，剔除外匯影響則成長 4.4%。此外，我們的銷售日逆風約為 200 個基點，對所有地區和產品類別的影響大致相同。

Excluding the selling day impact, consolidated constant currency sales would have grown above 6%. U.S. growth was 3.7% and international grew 5.4%. Growth in the U.S. was driven by solid performance in RECON in our priority areas within S.E.T. as well as our other category. Outside of the U.S., EMEA saw stronger-than-expected growth on a regional basis. And from a portfolio perspective, OUS growth was primarily driven by our knee category.

排除銷售日影響，以固定匯率計算綜合銷售額將成長 6% 以上。美國成長 3.7%，國際成長 5.4%。美國的成長是由 S.E.T 優先領域 RECON 的穩健表現所推動的。以及我們的其他類別。除美國以外，歐洲、中東和非洲地區的成長強於預期。從投資組合的角度來看，OUS 的成長主要是由我們的膝蓋類別所推動的。

Global Knees grew 4.3% in the quarter with the U.S. growing 2.2% and international growing 7.3%. Growth in our knee business continues to be driven by our Persona product portfolio and ROSA Robotics platform. We remain excited about the growth coming from new and recent product launches across the knee segment. Global Hips grew 1.5% in the quarter with the U.S. growing 1% and international growing 2%. We remain focused on accelerating performance in the Hip segment with key product launches that Ivan mentioned earlier.

本季全球膝關節成長 4.3%，其中美國成長 2.2%，國際成長 7.3%。我們的 Persona 產品組合和 ROSA Robotics 平台持續推動我們膝蓋業務的成長。我們對膝關節領域新產品和近期產品的推出所帶來的成長仍然感到興奮。本季全球臀部成長 1.5%，其中美國成長 1%，國際成長 2%。我們仍然專注於透過伊凡之前提到的關鍵產品發布來提高髖關節領域的性能。

Next, the S.E.T. category grew 5.3%, led by our key focus areas of CMFT, upper extremities and sports growing on average about low double digits. This strong growth was partially offset by the other subsegments within the category. Despite the choppiness within S.E.T., we remain confident this business will drive mid-single-digit or above growth for the full year.

接下來，S.E.T.類別成長了 5.3%，其中 CMFT、上肢和體育等重點關注領域的平均成長約為兩位數。這種強勁的成長被該類別內的其他細分市場部分抵消。儘管 S.E.T. 內部動盪不安，但我們仍然相信該業務將推動全年中個位數或以上的成長。

Finally, our other category grew 12.2%, driven by continued strong ROSA sales. We expect growth in the other category will moderate lower as we move through the rest of the year. In Q1, we reported GAAP diluted earnings per share of $0.84 compared to GAAP diluted earnings per share of $1.11 in the prior year. Higher revenue and a lower share count in Q1 2024 was offset by higher selling costs and expenses associated with our restructuring program.

最後，在 ROSA 銷售持續強勁的推動下，我們的其他類別成長了 12.2%。我們預計，隨著今年剩餘時間的推移，其他類別的成長將放緩。第一季度，我們公佈的 GAAP 攤薄每股收益為 0.84 美元，而上一年的 GAAP 攤薄每股收益為 1.11 美元。 2024 年第一季收入的增加和股票數量的減少被與我們的重組計劃相關的銷售成本和費用的增加所抵消。

On an adjusted basis, we reported diluted earnings per share of $1.94 compared to $1.89 in the prior year. The step-up is primarily driven by revenue growth, accelerated savings pull-through from the restructuring program and a lower share count, partially offset by higher interest expenses and taxes related to Pillar 2.

調整後的每股攤薄收益為 1.94 美元，而前一年為 1.89 美元。這一成長主要是由收入成長、重組計畫帶來的儲蓄加速和股票數量減少所推動的，但部分被第二支柱相關利息支出和稅收的增加所抵消。

Foreign currency was a headwind of about $0.04 in the quarter when compared to the prior year. Our adjusted gross margin was 72.9%, driven by higher manufacturing costs, which were offset by better pricing and lower royalties. Overall, gross margin was in line with expectations and with the prior year.

與去年同期相比，本季外幣逆風約為 0.04 美元。我們的調整後毛利率為 72.9%，這是由於製造成本上升，但更好的定價和更低的特許權使用費抵消了這種影響。整體而言，毛利率符合預期和去年。

Adjusted operating margin was 28.6%, slightly ahead of the prior year. The increase in operating margin was driven by higher sales and lower SG&A related to the restructuring program I referenced earlier. Net interest and other adjusted non-operating expenses were $49 million in the quarter, slightly higher than the prior year. And our adjusted tax rate was 18.5%, and we continue to project our full year rate at 18%.

調整後營業利益率為 28.6%，略高於上年。營業利潤率的成長是由於與我之前提到的重組計劃相關的銷售額增加和銷售管理及行政費用減少所推動的。本季淨利息和其他調整後的非營運支出為 4,900 萬美元，略高於去年同期。我們調整後的稅率為 18.5%，我們繼續預計全年稅率為 18%。

Turning to cash and liquidity. We generated operating cash flows of $228 million, free cash flow of $91 million, and we ended the quarter with $393 million of cash and cash equivalents. Regarding our outlook for the rest of the year, we are reiterating our full year guidance, including constant currency growth of 5% to 6% or 4.5% to 5.5% reported revenue growth with a 50 basis point currency headwind. Additionally, we continue to expect earnings to be between $8 to $8.15, and that we will generate between $1.50 billion to $1.1 billion of free cash flow.

轉向現金和流動性。我們產生了 2.28 億美元的營運現金流，9,100 萬美元的自由現金流，本季末我們的現金和現金等價物為 3.93 億美元。關於我們對今年剩餘時間的展望，我們重申了全年指導，包括 5% 至 6% 的恆定貨幣增長率或 4.5% 至 5.5% 的報告收入增長，以及 50 個基點的貨幣逆風。此外，我們仍然預期收益將在 8 至 8.15 美元之間，我們將產生 15 億至 11 億美元的自由現金流。

From a cadence perspective, we still expect constant currency revenue growth for the first half of the year to be at the lower end of mid-single-digit growth in the second half of the year to be at the upper end of mid-single-digit growth. As a reminder, Q2 and Q3 will each have about 150 basis point tailwind due to selling days and the selling day impact for Q4 and for the full year is expected to be immaterial or less than 50 basis points.

從節奏上看，我們仍然預計上半年貨幣收入持續成長將處於中個位數成長的下端，下半年將處於中個位數成長的上端。提醒一下，由於銷售日的原因，第二季和第三季將各有約 150 個基點的順風車，而第四季和全年的銷售日影響預計並不重大或低於 50 個基點。

Regarding the P&L, we expect adjusted gross margin to be broadly in line with 2023 and slightly better than our original thinking due to less FX headwinds than originally assumed. Given the strength in dollar, FX hedge gains are not as big a stepdown in 2024 as originally expected. Looking at gross margin, we expect Q1 to be the high watermark, followed by a modest sequential step down throughout the year. Overall, first half gross margins will be about 100 basis points higher than the second half as we continue to feather in capitalized inflationary costs from the second half of 2023.

關於損益表，我們預期調整後的毛利率將與 2023 年基本一致，並且略好於我們最初的想法，因為外匯阻力比最初假設的要少。鑑於美元走強，2024 年外匯對沖收益不會像最初預期的那樣大幅下降。就毛利率而言，我們預計第一季將達到高水位，隨後全年將略有下降。總體而言，隨著我們從 2023 年下半年開始繼續降低資本化通膨成本，上半年毛利率將比下半年高出約 100 個基點。

Turning to adjusted operating margin. We are pleased with the start to the year as our restructuring efforts are delivering slightly ahead of schedule. Overall, second half operating margins will be higher than the first half. And we expect for the full year that at the midpoint of our guidance, we will increase operating margins by about 80 basis points.

轉向調整後的營業利益率。我們對今年的開局感到滿意，因為我們的重組工作稍微提前了一些。整體而言，下半年營業利潤率將高於上半年。我們預計全年營業利潤率將在指導方針的中點提高約 80 個基點。

In summary, Q1 was a good start to the year. We delivered results ahead of expectations and continue to feel confident in our 2024 outlook as evidenced by the reiteration of guidance. With that, I'll turn the call back over to Keri.

總而言之，第一季是今年的好開始。我們交付的業績超出了預期，並對 2024 年的前景繼續充滿信心，這一點從重申的指引就可見一斑。這樣，我會將電話轉回給 Keri。

Thanks, Suky. And thanks, Ivan, for the kind words. It's been such a privilege to be part of the Zimmer Biomet team these 4.5 years, and I wish the team much continued success moving forward.

謝謝，蘇基。謝謝伊凡的客氣話。 4.5 年來，我很榮幸成為 Zimmer Biomet 團隊的一員，我祝福球隊繼續取得成功。

Now before we start the Q&A session, just a quick reminder to please limit yourself to a single question and one brief 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?

現在，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簡短的後續行動中，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.

我們先請教美國銀行的崔維斯‧史蒂德 (Travis Steed)。

Keri, great working with you and good luck in your next endeavors. I guess, kind of high level, you guys have this kind of algorithm, 5% to 6% revenue growth potential for some margin expansion and possibly kind of low double-digit EPS growth. And just trying to think about how we should think about that algorithm over the long term. Is it more of a base case or kind of best case? There's just a lot of skepticism from the investor community on that algorithm. And trying to think about what's the Zimmer growth rate kind of on a sustainable basis in a normalized market? And then just the second question I'll go ahead and throw out too. Just any color on Q2 sequentially. It's usually down, Hips and Knees is usually down a little bit sequentially, but with some of the selling day stuff, I just wanted to make sure there wasn't any titration on Q2.

Keri，與您合作非常愉快，祝您接下來的努力一切順利。我想，有點高水平，你們有這種演算法，有 5% 到 6% 的收入成長潛力，可以實現一定的利潤率擴張，並且可能有較低的兩位數每股收益成長。只是想從長遠來看我們應該如何考慮該演算法。它更多的是基本情況還是最佳情況？投資者群體對該演算法抱持有很多懷疑態度。並試著思考在正常化的市場中，Zimmer 的可持續成長率是多少？然後我將繼續提出第二個問題，並將其也丟棄。連續 Q2 上的任何顏色。它通常會下降，臀部和膝蓋通常會連續下降一點，但對於一些銷售日的東西，我只是想確保第二季度沒有任何滴定。

Travis, Ivan here. Thanks for the question. I'll touch on both components of your question, and I'll make sure that Suky speaks up here as well. So starting with the algorithm on revenue, EPS and free cash flow. We're going to give more color in the Investor Day, but I will tell you today, as per the prepared remarks, this is a long-term commitment. So it's not a 2024 only deliver revenue above market, EPS above revenue and free cash flow above EPS growth. And unpacking the drivers here on revenue, it's all about new product introductions. We're going to gain share by delivering innovation that matters. 100 to 200 basis points, largely is going to come from new product introductions. And as we said all along, we got a pipeline that we didn't have before, 40 new product introductions over the next 24 to 36 months, more in the making. So that's the #1 driver on revenue in addition to obviously pricing dynamics and commercial execution.

崔維斯，伊万在這裡。謝謝你的提問。我將討論你問題的兩個部分，我將確保 Suky 也在這裡發言。因此，從收入、每股盈餘和自由現金流的演算法開始。我們將在投資者日賦予更多色彩，但今天我會告訴你，根據準備好的言論，這是一項長期承諾。因此，2024 年不僅僅是收入高於市場、每股收益高於收入、自由現金流高於每股收益成長的情況。從收入的驅動因素來看，這一切都與新產品的推出有關。我們將透過提供重要的創新來獲得份額。 100到200個基點，主要來自新產品的推出。正如我們一直以來所說的，我們擁有了以前沒有的管道，在接下來的 24 到 36 個月內推出了 40 個新產品，更多產品正在開發中。因此，除了明顯的定價動態和商業執行之外，這是收入的第一大驅動因素。

On EPS growth, we're doing things differently when it comes to margin, I already mentioned pricing, but other components, how we think about inventory in excess and obsolescence, how we think about allocation of OpEx, where we get the greatest return, et cetera, et cetera. And the free cash flow, the main driver is the fact that we have run this company in quite an inefficient way when it comes to inventory management. North of 400 days on hand when it comes to inventory, not really engaging on prioritization of geographies. Portfolio management is not what it needs to be. So those are the key drivers on the sustainability.

在每股收益成長方面，我們在利潤方面的做法有所不同，我已經提到了定價，但其他組成部分，我們如何看待庫存過剩和過時，我們如何考慮營運支出的分配，我們在哪裡獲得最大的回報，等等，等等。自由現金流的主要驅動力是我們在庫存管理方面以相當低效的方式經營這家公司。就庫存而言，現有庫存超過 400 天，並沒有真正考慮地理位置的優先順序。投資組合管理並不是它所需要的。因此，這些是永續發展的關鍵驅動因素。

I'll touch on #2, and then I'll give it to Suky. In terms of Q1 to Q2 to Q3 to Q4, what happens sequentially. Look, we're not going to get into the gymnastics on what happens quarter-over-quarter, all kinds of timing 1 quarter to the other. We call -- we're having similar conversations in Q4. Here is what I'd leave you with. Q1 was very strong. A 4.4% growth in constant currency, north of 6% in day rate.

我將談到#2，然後將其交給Suky。就 Q1 到 Q2 到 Q3 到 Q4 而言，依序發生的情況。聽著，我們不會討論季度與季度之間發生的情況，以及一個季度與另一個季度之間的各種計時。我們打電話——我們在第四季進行了類似的對話。這就是我要留給你的。 Q1非常強勁。以固定匯率計算成長 4.4%，高於以日匯率計算的 6%。

As we see here, looking at the year, we were confident at the very beginning of the year in the guidance of 5% to 6%, a quarter behind, we're extremely confident on the guidance. The growth drivers that get us there are working in the right direction. So very, very confident, very proud of Q1. And again, we'll talk more about the dynamics at Investor Day. Suky?(43:40)

正如我們在這裡看到的，縱觀今年，我們在年初對 5% 至 6% 的指導充滿信心，落後了四分之一，我們對指導非常有信心。讓我們實現這一目標的成長動力正在朝著正確的方向發揮作用。所以對第一季非常、非常有信心、非常自豪。再次，我們將在投資者日更多地討論動態。蘇基？

Yes. I think Ivan summarized it really well, so I'll just try to build some incremental points here. I think at that mid-single-digit growth top line profile that Ivan mentioned, we do have a durable path to operating margin expansion as well as improvements in overall free cash flow conversion.

是的。我認為 Ivan 總結得非常好，所以我將嘗試在這裡建立一些增量點。我認為，按照伊凡提到的中個位數成長的頂線情況，我們確實有一條持久的途徑來擴大營業利潤率，並改善整體自由現金流轉換。

On the earnings outlook, this year, if you look at our guide, it's 6% to 8%, which, again, we reiterate and feel confident in. If you -- on an underlying basis, if you back out the step-up in tax rate that we saw at Pillar 2 as well as headwinds that I think everyone is facing on interest as well as FX, the underlying growth on the bottom line is much better than 6% to 8%, maybe 300 to 400 basis points better on an underlying basis, which puts us kind of in that high single digits, low double digits. And if you look at what we did in '23, I think we were also there.

關於今年的獲利前景，如果你看看我們的指南，你會發現它是 6% 到 8%，我們再次重申這一點並對此充滿信心。認為每個人都面臨的利息和外匯不利因素而言，底線的潛在增長遠好於6% 至8%，也許好300 至400 個基點從根本上講，這使我們處於高個位數、低兩位數的狀態。如果你看看我們在 23 年所做的事情，我想我們也做到了這一點。

As we look forward, using your words Travis, base case, et cetera, we think there's a pathway to low double-digit earnings growth. I wouldn't say it's our base case or our commitment. And again, we're going to provide more color on our Analyst Day. But as we think about margin expansion with revenue growth, we just want to make sure we've got the right investment profile to the company to make sure that, that growth is durable. So is that our base case, I wouldn't necessarily go there. I'd say we have a pathway there. But we're going to provide a lot more color in just a few more weeks.

當我們展望未來時，用你的話特拉維斯、基本情況等等，我們認為有一條實現低兩位數盈利增長的途徑。我不會說這是我們的基本情況或我們的承諾。再次，我們將在分析師日提供更多色彩。但當我們考慮利潤率隨著收入成長而擴大時，我們只是想確保我們為公司提供了正確的投資組合，以確保成長是持久的。這就是我們的基本情況，我不一定會去那裡。我想說我們在那裡有一條路。但我們將在幾週內提供更多的顏色。

Katie, can we have the next question in the queue?

凱蒂，我們可以問下一個問題嗎？

We'll go next to Steve Lichtman with Oppenheimer & Company.

接下來我們將與奧本海默公司的史蒂夫·利希特曼 (Steve Lichtman) 進行交流。

Congratulations on the quarter, guys. And Keri, it's been great working with you. I guess I'll first start on pricing commentary. I thought that was notable. Ivan, can you talk about where the positive surprise came from on that front? Are the benefits of your efforts coming sooner? Just some general comments on the pricing environment would be great.

夥計們，恭喜這個季度。 Keri，和你一起工作真是太好了。我想我會先從定價評論開始。我認為這很值得注意。伊万，你能談談這方面的正面驚喜來自哪裡嗎？你的努力的成果會更快到來嗎？如果只是對定價環境進行一些一般性評論就很好了。

Yes. We're very -- Steve, thank you. We're very pleased, obviously, with pricing performance. Recall that in 2023, the second semester of '23, so the last half of '23, we're already flattish when it comes to price. So this is a business that in previous years was having 300 to 500 basis points of price erosion in the U.S., pretty significant OUS. That's not the change that we have going on. We put a structure in place. We put governance, new product introductions are helping from a category contracting.

是的。我們非常——史蒂夫，謝謝你。顯然，我們對定價表現非常滿意。回想一下，2023 年，也就是 23 年第二學期，也就是 23 年下半年，我們在價格上已經持平。因此，該業務前幾年在美國的價格下跌了 300 到 500 個基點，這是相當大的 OUS。這不是我們正在進行的改變。我們建立了一個結構。我們把治理、新產品的推出都從類別承包中提供了幫助。

I wouldn't say there's any real surprises. Europe may be doing slightly better than anticipated. You've got all kinds of [tender] dynamics that come in and out. But net-net, we are at a point where it is pretty predictable. We like the strategy in place. We like the governance. We're not going to commit here to doing dramatically better, but no real surprises, only Q1 and a great outlook for the rest of the year. Suky, do you have any other comments?

我不會說有任何真正的驚喜。歐洲的表現可能略優於預期。你有各種進出的[溫柔]動力。但從網路到網絡，我們正處於一個完全可預測的階段。我們喜歡現有的策略。我們喜歡治理。我們不會在這裡承諾做得更好，但沒有真正的驚喜，只有第一季和今年剩餘時間的美好前景。蘇琪，你還有什麼意見嗎？

I think overall we're in more favorable environment than we've been, let's call it, 3, 4 years ago. When you combine that with some of the structural changes we're making inside the company, that's -- I think those 2 things are really leading to better price performance. I'll tell you, I'm really impressed and optimistic about the cultural change, quite frankly, within Zimmer Biomet as I talked to distributors or field level reps and their desire to want to make sure that we're getting the value for the products that we bring to market. That's encouraging. And I think that makes it durable.

我認為總的來說，我們現在的環境比三、四年前更有利。當你將其與我們在公司內部進行的一些結構性變革結合起來時，我認為這兩件事確實會帶來更好的性價比。我告訴你，坦白說，當我與經銷商或現場代表交談時，我對 Zimmer Biomet 內部的文化變革印象深刻，並且對他們希望確保我們獲得價值的願望感到樂觀。這令人鼓舞。我認為這使得它耐用。

In the quarter, we were roughly flat. I do expect us to be -- when I set out the year, I thought we'd be 100 to 150 basis points of erosion. I think we're now under 100 basis points of erosion especially given what we saw in the first quarter. I don't expect that flat profile to continue through the rest of the year because we've got a number of things that happened at the back end of last year, especially in Europe where we took some pretty large price increases in devalue sort of currencies and markets that will sunset later on this year.

本季度，我們的業績大致持平。我確實預計我們會——當我設定今年時，我認為我們會出現 100 到 150 個基點的侵蝕。我認為我們現在的侵蝕幅度低於 100 個基點，特別是考慮到我們在第一季看到的情況。我預計今年剩餘時間不會持續這種平淡的情況，因為去年年底發生了很多事情，特別是在歐洲，我們在貨幣貶值方面出現了相當大的價格上漲。 。

Also, we've got some new contracts that are coming up, which will create a little bit of pressure. So I don't expect that flat profile to continue through the rest of the year. But nonetheless, we're in a much better spot than we were a few years ago. And again, expect overall pricing to be somewhere under 100 basis points for the full year '24.

此外，我們還有一些新合約即將簽訂，這將帶來一些壓力。因此，我預計今年剩餘時間這種平坦的狀況不會持續。但儘管如此，我們的處境比幾年前好得多。再次預計 24 年全年整體定價將低於 100 個基點。

Great and then quickly follow-up -- just wanted to follow up real quickly on the ROSA shoulder. Just on the initial launch and your outlook for ramp this year?

很棒，然後很快跟進——只是想在 ROSA 肩膀上快速跟進。只是關於最初的發布以及您對今年的成長的展望嗎？

Yes. Thank you. Obviously, very excited in terms of this product launch. We did the first cases at the Mayo Clinic a couple of weeks ago. Feedback was very solid. It is a product that has a high degree of accuracy in the cuts in the visibility of anatomy. It is efficient from an instrumentation standpoint. It's fully interconnected with the rest of the CVH ecosystem. Case over case, the feedback was that you do achieve time efficiencies. So the learning curve is rather short.

是的。謝謝。顯然，對於這款產品的推出非常興奮。幾週前，我們在梅奧診所完成了第一批病例。回饋非常可靠。它是一種在解剖學可見性方面具有高精度切割的產品。從儀器的角度來看，它是高效率的。它與 CVH 生態系統的其他部分完全互連。逐個案例，回饋是您確實實現了時間效率。所以學習曲線相當短。

So very solid clinical feedback. In terms of the impact, we said all along that we're going to take it slowly in the first, call it, 90 to 120 days. And you will see the real impact as we get closer to the end of the year. But a very meaningful product launch for the company. I'm very excited about it. Thanks, Steve.

非常可靠的臨床回饋。就影響而言，我們一直表示，我們將在第一天（即 90 到 120 天）內緩慢採取措施。隨著年底的臨近，您將看到真正的影響。但這對公司來說是一次非常有意義的產品發布。我對此感到非常興奮。謝謝，史蒂夫。

Larry Biegelsen with Wells Fargo.

富國銀行的拉里·比格爾森。

This is Vik Chopra in for Larry Biegelsen. Keri, thanks for all your help and good luck. So 2 for me. I just wanted to get a sense as to kind of what we can expect at your upcoming Investor Day at the end of the month. With regard to financial goals, will you have specific LRP goals for revenue? Or will it be relative to the market, for example, growth of 100 to 200 basis points above market. And then I had a follow-up.

我是維克喬普拉 (Vik Chopra) 飾演拉里比格爾森 (Larry Biegelsen)。 Keri，感謝您的所有幫助，祝您好運。所以對我來說2。我只是想了解一下在本月底即將到來的投資者日我們可以期待什麼。關於財務目標，您有具體的 LRP 收入目標嗎？或者是相對於市場而言，例如比市場高出100到200個基點的成長。然後我進行了跟進。

Yes. No, we'll definitely cover the -- how we plan to achieve these 3 commitments we're making from a financial perspective in terms of what are the drivers of revenue, EPS and free cash flow. So we'll definitely provide those details. We'll cover the new product introductions, we've seen that. We'll talk about the capital allocation on the strategy moving forward. So it's going to be very robust. So that's the Analyst Day.

是的。不，我們肯定會涵蓋——我們計劃如何從財務角度實現這三項承諾，即收入、每股收益和自由現金流的驅動因素。所以我們一定會提供這些細節。我們將介紹新產品的介紹，我們已經看到了。我們將討論未來策略的資本配置。所以它會非常強大。這就是分析師日。

The second question I had was you beat consensus EPS by about $0.07, but you didn't really raise the guidance on EPS. Can you just provide some color on that?

我的第二個問題是，您的每股收益超出了共識約 0.07 美元，但您並沒有真正提高每股收益的指導值。你能提供一些顏色嗎？

Yes. I think Ivan said it really well in his opening remarks. We had a good start to the year, and it was great to see the better-than-expected performance in revenue. We saw a very good flow through all the way to the bottom. So I love the discipline that we've got throughout the company. I would say that this just reinforces and gives us more conviction in the guidance range that we provided earlier this year.

是的。我認為伊凡在他的開場白中說得很好。我們今年有一個好的開端，很高興看到收入表現優於預期。我們看到一直到底部的流動非常好。所以我喜歡我們整個公司的紀律。我想說，這只會強化並讓我們對今年早些時候提供的指導範圍更有信心。

We'll go next to Rick Wise with Stifel.

我們將和 Stifel 一起去 Rick Wise 旁邊。

And we'll miss you, Keri. I'll ask my question and my follow-up at the same time. Ivan, obviously, on all these new introductions; OsseoTi HAMMR, the robotic shoulder, but -- and all of them sound like they'll be meaningful and I assume will help pricing, will help gain share, will help leverage your fixed cost, your operating costs.

我們會想念你的，克里。我會同時提出我的問題和後續行動。伊万，顯然，所有這些新的介紹； OsseoTi HAMMR，機器人肩膀，但是 - 所有這些聽起來都很有意義，我認為將有助於定價，將有助於獲得份額，將有助於平衡您的固定成本和運營成本。

But I was hoping you'll focus in particular on the implications of the Z1 launch. You highlighted the product several times. Is this the lynchpin product that you've been missing to make your hip portfolio more credible and to bring your business up to sort of more industry norms?

但我希望您能特別關注 Z1 發布的影響。您多次強調了該產品。這是您一直缺少的讓您的時尚產品組合更加可信並使您的業務達到更多行業規範的關鍵產品嗎？

And my second -- my follow-up is sort of related to all that, relates to margins. Suky, I mean, I heard what you said about gross and operating margins. But again, when I think about all these introductions, I assume better pricing and margins and share and leveraging. Why should I believe you on everything you just said about the margin outlook?

我的第二個——我的後續行動有點與所有這些有關，與利潤率有關。 Suky，我的意思是，我聽到了你所說的毛利率和營業利潤率。但同樣，當我考慮所有這些介紹時，我假設更好的定價和利潤以及份額和槓桿作用。我為什麼要相信你剛才所說的關於利潤率前景的一切？

Thank you, Rick. I'll cover the Hip question, and then we'll proceed with the interrogation of Suky here when it comes to the margin. One product is not -- one product is not what's going to win the battle here, right? It is a category of products. We've been very transparent. We've not done great when it comes to hips over the last 3 or 5 years and essentially driven by 3 product categories.

謝謝你，瑞克。我將討論臀部問題，然後我們將在涉及邊緣時繼續對蘇基進行審問。一種產品不能——一種產品不能贏得這場戰鬥，對吧？它是產品的一個類別。我們一直都非常透明。在過去的三、五年裡，我們在臀部方面做得併不好，主要是由 3 個產品類別驅動的。

The first one is a direct anterior stem what is not in the market as a triple taper stem and it was a deficiency that we had. Z1 solves that and it does in a differentiated way. So now with this 510(k) approval, we compete with the 2 other large orthopedic companies in direct anterior.

第一個是直接前閥桿，市場上沒有三錐度閥桿，這是我們的一個缺陷。 Z1 以一種與眾不同的方式解決了這個問題。因此，現在有了 510(k) 批准，我們就可以在直接前路領域與另外兩家大型骨科公司競爭。

The second category was a surgical impactor. It drives efficiency, it drives accuracy in how you treat the cases. It integrates with the rest of the procedure. You need certain levels of power as you do in that hip surgery. So there is a surgical impactor and we have that with HAMMR, fully launched, we're going to run that up. And the first thing that we needed was to have navigation.

第二類是手術衝擊器。它提高了效率，並提高了處理案件的準確性。它與程序的其餘部分集成。就像在髖關節手術中一樣，您需要一定程度的力量。所以有一個外科衝擊器，我們已經有了 HAMMR，完全啟動了，我們將運行它。我們需要的第一件事就是導航。

We got true modalities navigation. Obviously, we've got ROSA Hip. We are the only company with a 510(k) FDA approved Mixed Reality Technology in our partnership with HipInsight. So again, it's not just Z1, it's the full portfolio. Direct anterior stems, surgical impactors and some sort of navigation. So I do believe and we do believe with a high degree of confidence that we're going to regain our old position in hips. We still remain the #1 hip company in the world, and I think that this portfolio accelerates our growth journey moving forward.

我們獲得了真正的模式導航。顯然，我們有 ROSA Hip。我們是與 HipInsight 合作的唯一一家擁有 FDA 510(k) 批准的混合實境技術的公司。再說一次，這不僅僅是 Z1，而是整個產品組合。直接前莖、手術衝擊器和某種導航。所以我確實相信，而且我們也非常有信心地相信，我們將恢復我們在臀部的舊位置。我們仍然是世界第一的時尚公司，我認為這個投資組合加速了我們前進的成長之旅。

And Rick, it's Suky. Always good to hear from you. On the margin front, I know the past isn't always indicative of the future, but I'll just -- it is a good validation and proof point, I think, in our situation. Both '22 and '23, we're able to expand operating margins quite significantly, I would say, even in the backdrop of a pretty hostile inflationary environment. And so again, kudos to the entire [CE] team.

瑞克，我是蘇基。很高興收到你的來信。在邊際方面，我知道過去並不總是預示未來，但我只是——我認為，在我們的情況下，這是一個很好的驗證和證明點。我想說，即使在通膨環境相當惡劣的背景下，我們也能夠在 22 年和 23 年大幅擴大營業利潤率。再次向整個 [CE] 團隊致敬。

In '24, we expect to do it again. And here's what I would say. We're doing it across the entirety of the P&L. First, through revenue growth and leverage our fixed costs. Secondly, we're making improvements in cost at a rate that we've not done before through inventory reduction, site optimization, reductions in E&O. We're even getting more efficient inside of R&D and looking at, hey, do we really need all this sustaining and how can we rationalize some of our portfolio, migrate our customers to better products, get rid of some of these products, which then reduces the amount of sustaining engineering, which we can then mix shift into NPI.

24 年，我們預計會再次這樣做。這就是我要說的。我們在整個損益表中都這樣做。首先，透過收入成長並利用我們的固定成本。其次，我們透過減少庫存、優化網站、減少 E&O 來以前所未有的速度改善成本。我們甚至在研發內部變得更加高效，並考慮，嘿，我們真的需要所有這些維持嗎？減少了維持工程的數量，然後我們可以將其混合到NPI 中。

We're getting it through SG&A. We're getting it through better allocation of capital and reducing our cost of debt. The beauty of that is when you have multiple shots on goal to improve operating margins, even if things go unexpectedly from a macro perspective or a micro perspective, we have other levers to continue to help us pull margins as we move forward. And so the thing I'll leave you with is it's not just in one area of the company, it's throughout the entirety of the P&L, and we feel confident about where we're going.

我們正在透過 SG&A 來解決這個問題。我們正在透過更好的資本配置和降低債務成本來實現這一目標。這樣做的美妙之處在於，當你多次努力提高營業利潤率時，即使事情從宏觀或微觀角度來看出乎意料，我們也有其他槓桿可以繼續幫助我們在前進的過程中提高利潤率。因此，我要告訴您的是，這不僅僅是在公司的某個領域，而是貫穿整個損益表，我們對我們的發展方向充滿信心。

And quite frankly, and I love what Ivan's bringing. He's bringing his owner-operator mindset to the company. He's got the company thinking not just about top line, but all the way through cash, cash being king, and I think that's really driving a culture change within our company as well. So I'm optimistic on where we're going, Rick.

坦白說，我喜歡伊凡帶來的東西。他將所有者兼經營者的心態帶入公司。他讓公司不僅考慮營收，還考慮現金，現金為王，我認為這也真正推動了我們公司內部的文化變革。所以我對我們的發展方向持樂觀態度，里克。

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。

This is actually Imron Zafar in for Pito. First question is on ROSA, obviously, a strong first quarter there. Can you talk about placement trends in the quarter by site of care, hospital versus ASC? And then also competitive dynamics for [ROSA] Joint orthopedic robots?

這其實是伊姆隆·紮法爾（Imron Zafar）取代皮托（Pito）。第一個問題是關於 ROSA，顯然，第一季表現強勁。您能否談談本季按護理地點、醫院與 ASC 劃分的安置趨勢？ [ROSA] 關節矯正機器人的競爭動態？

Absolutely. Thanks for the question. So let's start with the global picture, if you will, very excited in terms of where we are overall with ROSA. So globally, ROSA is becoming the preferred robotic option in many markets outside of the U.S. Here in the U.S., we're approaching around 20% penetration of ROSA in cases.

絕對地。謝謝你的提問。因此，如果您願意的話，讓我們從全球情況開始，我們對 ROSA 的整體狀況感到非常興奮。因此，在全球範圍內，ROSA 正在成為美國以外許多市場的首選機器人選擇。

As you saw in the quarter, we had a large amount of ROSA sales, which is encouraging because that means in the other category, that's encouraging because that's a future stream of net pull-through. About 1/3 of all the installs that we do in the U.S. go to an ASC environment, which, again, is not a surprise given the fact that ROSA does drive easier preplanning. You don't need to do a CT scan. It is very surgeon center, so it's very controllable. And we continue to see that there is a high degree of preference for ROSA in those higher volume accounts.

正如您在本季度看到的那樣，我們有大量 ROSA 銷售額，這令人鼓舞，因為這意味著在其他類別中，這令人鼓舞，因為這是未來的淨拉動流。我們在美國進行的所有安裝中大約有 1/3 進入了 ASC 環境，考慮到 ROSA 確實使預先規劃變得更加容易，這並不奇怪。您不需要進行 CT 掃描。這是一個非常外科醫生中心，所以非常可控。我們繼續看到，那些交易量較高的帳戶對 ROSA 有著高度的偏好。

So net-net, everything in the right direction in terms of penetration, where we are gaining traction in key markets around the world and a lot of the dynamic that we're seeing here in the U.S. ambulatory surgical center environment.

因此，就滲透而言，一切都朝著正確的方向發展，我們在全球主要市場中獲得了吸引力，我們在美國門診手術中心環境中看到了許多動態。

Just as a quick follow-up. Can you remind us what the site of care mix is for shorter Recon hospital versus ASC?

就像快速跟進。您能否提醒我們，與 ASC 相比，較短的 Recon 醫院的護理組合是怎樣的？

So we're starting to see a dynamic in where cases are moving to the ASC for shoulders, getting the CMS change. I would say today, probably around 60% to 65% of the cases of shoulder are now done in ASC, but that's moving pretty rapidly, given the change of reimbursement. And we've got a strong position both in the inpatient, outpatient as well as the ASC. But I would say net-net, is around 60%, 65% to 35% in terms of that mix.

因此，我們開始看到案件正在轉移到 ASC 的動態，從而使 CMS 發生變化。今天我想說，大約 60% 到 65% 的肩部病例現在是在 ASC 中完成的，但考慮到報銷的變化，這一進展相當迅速。我們在住院、門診和 ASC 領域都擁有強大的地位。但我想說的是，就混合而言，淨值-淨值大約是 60%、65% 到 35%。

We'll go next to Caitlin Cronin with Canaccord Genuity.

接下來我們將與 Canaccord Genuity 一起討論 Caitlin Cronin。

Just touching a little bit further on ROSA and the strength in the other line, Suky, did you say that you expect lower growth in this segment through the year?

只是進一步談 ROSA 和另一條線的實力，Suky，您是否說過您預計這一細分市場今年的增長會較低？

It was a little bit choppy there, Caitlin, Sorry, did you ask if -- you asked something about other? Could you repeat the question?

那裡有點不穩定，凱特琳，抱歉，你有沒有問過——你問過一些關於其他的事情嗎？你能重複一下這個問題嗎？

Yes, apologies. Did you say that you expect lower growth in the segment throughout the year?

是的，抱歉。您是否說過您預計全年該細分市場的成長會較低？

Yes. Yes. So we had a pretty strong quarter in our other category, primarily driven by ROSA Capital. So we saw good installs. And we saw a higher mix of sales versus placements which drove a higher level of dollar revenue in that quarter. The good news is we saw a lot of new placements and new ASCs, which is exactly where we want to see ROSA's position and the capital sales were very good.

是的。是的。因此，我們在其他類別中的季度表現相當強勁，這主要是由 ROSA Capital 推動的。所以我們看到了良好的安裝。我們看到銷售與安置的比例更高，這推動了該季度更高的美元收入水平。好消息是我們看到了很多新的配售和新的 ASC，這正是我們希望看到 ROSA 的地位和資本銷售非常好的地方。

We also love placements because that comes with a longer-term commitment. Our expectation is that we'll step down from what you saw in the first quarter as we move throughout the year, and that's been assumed in our guidance reiteration.

我們也喜歡實習，因為這伴隨著長期的承諾。我們的期望是，隨著全年的發展，我們將比第一季的情況有所下降，這在我們的指導重申中是假設的。

Okay. And then any updates on Persona?

好的。那麼《Persona》有什麼更新嗎？

Go ahead with a follow-up. Line is kind of choppy. Go ahead.

繼續跟進。線路有點斷斷續續。前進。

Okay. Apologies. And any updates on the Persona IQ rollout?

好的。道歉。 Persona IQ 的推出有何更新？

Yes. Thank you, Caitlin. It's moving in the right direction. I will say, as of late, things are accelerating, both from an innovation and a commercial execution standpoint. So on innovation, we did receive recently the 510(k) approval for -- didn't make it to the press release for the study. So as the shorter stem version of Persona IQ, which has been a gating factor for some surgeons that don't use the longer stem. So that's an innovation and they are right there.

是的。謝謝你，凱特琳。它正在朝著正確的方向發展。我想說，最近，無論是從創新還是商業執行的角度來看，事情都在加速發展。因此，在創新方面，我們最近確實收到了 510(k) 批准——但沒有進入該研究的新聞稿。因此，Persona IQ 的短柄版本對於一些不使用較長柄的外科醫生來說是一個限制因素。所以這是一項創新，他們就在那裡。

The other piece that is gaining traction is the launch of what we call recovery curves. This is a platform that only Persona IQ has. Interconnects the data of the TAM with a dashboard that in a very objective way, can quantify how patients are doing in comparison to other patients with similar dynamics. So those are 2 innovation updates that are more in the right direction.

另一件受到關注的事情是推出我們所謂的恢復曲線。這是只有 Persona IQ 擁有的平台。將 TAM 的數據與儀表板互連，以非常客觀的方式量化患者與其他具有類似動態的患者相比的表現。因此，這兩項創新更新的方向更為正確。

In terms of the execution and commercial journey, we got what we need. We got the right designs. We've been talking about value proposition. It's been resonating. We are in some of the largest teaching institutions, and we continue to be committed to the journey. So very excited about Persona IQ. Thank you for the question.

在執行和商業旅程方面，我們得到了我們所需要的。我們得到了正確的設計。我們一直在談論價值主張。一直引起共鳴。我們在一些最大的教學機構中工作，我們將繼續致力於這趟旅程。對 Persona IQ 非常興奮。感謝你的提問。

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

接下來我們將與尼達姆公司的 Mike Matson 會面。

Yes. So I just want to ask one about kind of what the guidance implies for second quarter revenue. you're saying you expect to be at the low end of the mid-single digits to sort of like 4% in the first half. Based on what you did in the first quarter, that implies kind of like 3.5% constant currency growth, but you have the 1.5% selling day benefit. So that applies like 2% kind of underlying growth. Is that -- is my math right there? And I guess why do you only expect 2% growth in the second quarter?

是的。所以我只想問一下這項指導對第二季營收意味著什麼。你是說你預計上半年的成長率會處於中個位數的低端，大約是 4%。根據您在第一季所做的事情，這意味著貨幣成長率約為 3.5%，但您可以獲得 1.5% 的銷售日收益。因此，這適用於 2% 的潛在成長。那是——我的數學正確嗎？我猜你為什麼只預期第二季成長 2%？

Yes. Mike, directionally, the way you think about it, right, I wouldn't quite go as low as that. But look, quarter-to-quarter, there's going to be choppiness. There's going to be noise based on timing, contracts, et cetera. We had a great start to the year. We continue to believe and reinforce our guidance and still believe that the first half is going to land as we expected to when we initially gave guidance. So nothing in particular about the quarter of note, but just the overall cadence, that's how we expect first half versus second half to play out this year.

是的。麥克，從方向上來說，按照你的想法，對吧，我不會那麼低。但看，每季都會出現波動。將會有基於時間、合約等的噪音。我們今年有一個好的開始。我們仍然相信並強化我們的指導，並且仍然相信上半年將如我們最初給予指導時的預期那樣落地。因此，沒有特別值得關注的季度，只是整體節奏，這就是我們預計今年上半年與下半年的表現。

Okay. And then just a follow-up on OsseoTi. So you mentioned it's gaining share. Does that mean that it's actually converting competitive surgeons? Or does that just mean it's cannibalizing the cemented Persona?

好的。然後是 OsseoTi 的後續行動。所以你提到它正在增加份額。這是否意味著它實際上正在改變有競爭力的外科醫生？或者這僅僅意味著它正在蠶食固化的人格面具？

No. We definitely are upgraded, if you will, some or for cementless -- legacy cementless platform over to Persona OsseoTi but at the same time, a sizable amount of the business coming from converting accounts. So you've seen that the U.S. knee number in the quarter was strong and a large component of that was the fact with pretty heavy comps, by the way, comes from the introduction of Persona OsseoTi and the expectation is that as we continue to move into the acceleration of the product launch, we're going to continue to gain share. So it's both existing accounts and new accounts.

不。所以你已經看到，本季度美國的膝蓋數量很強勁，其中很大一部分是因為相當重的補償，順便說一句，來自 Persona OsseoTi 的引入，預計隨著我們繼續前進隨著產品推出的加速，我們將繼續獲得份額。所以它既是現有帳戶又是新帳戶。

We'll go next to Vijay Kumar with Evercore ISI.

接下來我們將與 Evercore ISI 一起討論 Vijay Kumar。

This is Sofia on for Vijay. One quick one on gross margins and operating margins. Were there any one-offs in the first quarter on gross margins. You guys raised the guide for margin but EPS was maintained. So is operating margin slightly down? And how do we think about margins for the rest of the year?

這是維傑的索菲亞。快速介紹一下毛利率和營業利益率。第一季的毛利率是否有一次性的情況？你們提高了利潤率指引，但每股盈餘維持不變。那麼營業利潤率是否略有下降？我們如何看待今年剩餘時間的利潤率？

Yes. No real -- in any given quarter, there's going to be puts and calls, both in gross margin and operating margin, but nothing material or out of the ordinary. We did a little bit better on gross margin than we expected to. We saw that flow through in the operating margins. So we feel really good about the start of the year.

是的。沒有真實的－在任何一個特定季度，毛利率和營業利潤率都會出現看跌期權和看漲期權，但沒有什麼重大或異常的情況。我們的毛利率比我們預期的要好一些。我們在營業利潤率中看到了這一點。所以我們對今年年初感覺非常好。

As we progress through the year, we do expect operating margins to step up in line with normal seasonality as revenue continues to step up and other savings programs pull through. So again, very confident in where we're headed from an earnings perspective in our guide. And if you recall, I think we said on the last quarterly call that at the midpoint, that implies about an 80 basis point lift in operating margin, and we're still confident in that.

隨著今年的進展，隨著收入持續增加和其他儲蓄計劃的實施，我們預計營業利潤率將按照正常的季節性增長。再次強調，從我們的指南中獲利的角度來看，我們對未來的發展方向非常有信心。如果您還記得的話，我想我們在上個季度電話會議上說過，在中點，這意味著營業利潤率將提高約 80 個基點，我們對此仍然充滿信心。

Okay. follow-up question -- just one quick one on M&A. I know you guys have made some comments about tuck-ins and kind of what that profile will look like. But anything in the pipeline that are particularly interesting right now that will fit now in the portfolio?

好的。後續問題——只是一個關於併購的快速問題。我知道你們已經對折邊以及個人資料的外觀發表了一些評論。但目前正在醞釀中的任何特別有趣且適合現在投資組合的東西？

Yes. We always have a robust pipeline. And we'll talk about the pipeline and the optionality of M&A in more depth once we meet in later in the month. But the same 3 key areas apply. We're looking for assets that are mission-centric from a strategic standpoint, fit in the higher-growth segments of Recon, certainly the high growth segments of S.E.T. as a category and then in the ASC space, which is a mixture of both 1 and 2. So we later focus on those 3 key areas while also keeping an eye on broader diversification.

是的。我們始終擁有強大的管道。一旦我們在本月稍後開會，我們將更深入地討論併購的管道和選擇性。但同樣的 3 個關鍵領域也適用。我們正在尋找從策略角度來看以任務為中心的資產，適合 Recon 的高成長細分市場，當然也適合 S.E.T. 的高成長細分市場。作為一個類別，然後是 ASC 空間，它是 1 和 2 的混合體。 因此，我們隨後將重點放在這 3 個關鍵領域，同時也關注更廣泛的多元化。

Financially, nothing has changed. We have flexibility to do larger deals, but we like deals where the acquisition price is under $2 billion. We definitely want to be neutral from an EPS standpoint within 2 years and then high single-digit ROIC to double-digit ROIC in the 5-year time horizon. So very clear on strategic and financial filters and the optionality is there and the pipeline is there. So more to come once we meet in New York.

從財務角度來看，一切都沒有改變。我們可以靈活地進行更大的交易，但我們喜歡收購價格低於 20 億美元的交易。從每股盈餘的角度來看，我們肯定希望在 2 年內保持中性，然後在 5 年內將高個位數的 ROIC 提高到兩位數的 ROIC。策略和財務過濾器非常清晰，有選擇，有管道。當我們在紐約見面時，還會有更多的內容。

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 just one for me. You kind of talked about second quarter and the expectation on the top line, and you just answered kind of margin cadence through the year. But I want to put a finer point on it and try and avoid some of the cadence issues that we had last year. So you talked about operating margin expanding.

恭喜季度表現良好。也許對我來說只是一件。您談到了第二季和對營收的預期，您剛剛回答了全年的利潤節奏。但我想更詳細地闡述這一點，並嘗試避免去年遇到的一些節奏問題。所以你談到了營業利益率的擴大。

I wanted to make sure, I think the prior commentary was second quarter would be the highest operating margin and fourth quarter would be the highest for the year with a sequential down in third quarter with normal seasonality. So maybe to kind of say it all a different way. Are you comfortable with where the Street is on EPS or EPS for a second, third, fourth quarter, are there any cadence changes you think we should be looking at moving from 1 quarter to another?

我想確定的是，我認為先前的評論是第二季將是最高的營業利潤率，第四季將是全年最高的，第三季在正常季節性的情況下會連續下降。所以也許可以用不同的方式來表達這一切。您對華爾街的每股盈餘或第二、第三、第四季的每股盈餘感到滿意嗎？

Yes. So Robbie, just a little bit of a correction. I'm not sure if I caught everything you said or understood, I should say everything you said. Fourth quarter will be our high watermark relative to operating margin in line with that being our high watermark from a revenue perspective. And so our margin does, in many ways, correlate heavily to our revenue outlook.

是的。羅比，稍微修正一下。我不確定我是否聽懂了你所說的話或理解的一切，我應該說出你所說的一切。第四季將是我們相對於營業利潤率的高水位線，與我們從收入角度來看的高水位線一致。因此，我們的利潤率在許多方面確實與我們的收入前景密切相關。

Relative to the cadence, I'm not going to -- in consensus I'm not going to sort of benchmark relative to that. I think we've actually given pretty good color already around the first half, second half revenue cadence. I've talked about gross margins crossed a 100 in the first half, second in the back half and then operating margins improving in the back half of the year due to restructuring overall. So I think there's actually pretty good color out there in line with how we've traditionally been transparent. So hopefully, that gives you enough to go from.

相對於節奏，我不會——一致認為，我不會制定與之相關的基準。我認為我們實際上已經在上半年和下半年的收入節奏中給出了相當不錯的色彩。我談到上半年的毛利率突破了 100，下半年又突破了 100，然後由於整體重組，下半年的營業利潤率有所改善。所以我認為實際上有非常好的顏色，符合我們傳統的透明方式。希望這能給你足夠的借鏡。

We'll go next to Chris Pasquale with Nephron.

接下來我們將與 Nephron 一起前往克里斯·帕斯誇萊 (Chris Pasquale)。

Ivan, you talked about 4 points of your revenue growth this year coming from market gains and then 100 to 200 basis points with outperformance. It gets you to your 5% to 6% goal. When we look at the first quarter, Recon growth was actually a little bit better than that, and that's really hard comp, [parts] comp of the year. So that 4% feels pretty conservative at this point.

Ivan，您談到今年的收入成長有 4 個百分點來自於市場收益，然後如果表現出色則收入增長 100 到 200 個基點。它可以幫助您實現 5% 到 6% 的目標。當我們看第一季時，Recon 的成長實際上比這要好一點，這真的是硬比較，年度[零件]比較。因此，4% 在這一點上感覺相當保守。

Your own performance across hips and knees was a little below market. So while I appreciate you're excited about the pipeline and what it can mean for share gains in the out years, are you still thinking about the recipe to get you to your 2024 target the same way?

您自己的臀部和膝蓋表現略低於市場水平。因此，雖然我很高興您對管道以及它對未來幾年的股票收益意味著什麼感到興奮，但您是否仍在考慮以同樣的方式實現 2024 年目標的秘訣？

Yes. Thank you, Chris. First of all, I wouldn't categorize our performance being below market. And we're going to have a healthy debate on whether it's above or below. But what I will tell you is that when we stay here right now, it is not below market. Certainly not from a training standpoint over a period of time and now that everyone is reported in Q1, we're not below market. So I'll start with that.

是的。謝謝你，克里斯。首先，我不會將我們的表現歸類為低於市場水準。我們將就它是高於還是低於進行健康的辯論。但我要告訴你的是，當我們現在住在這裡時，它並不低於市場價格。當然不是從一段時間內的培訓角度來看，現在每個人都在第一季得到報告，我們並沒有低於市場水平。那我就從這個開始吧。

In terms of how we get to the 5% to 6%, I think the formula continues to be product introductions, which will ramp up later in the year and even more product introductions as we get into 2025. We've never had 5.5, almost 6 years here with the company, I've never seen a poor portfolio. I mentioned earlier that we don't have any gaps in hips with the introductions that we have done in Knees, there's 0 gaps.

就我們如何達到 5% 到 6% 而言，我認為公式仍然是產品推出，這將在今年晚些時候增加，進入 2025 年時甚至會推出更多產品。近6 年，我從未見過糟糕的投資組合。我之前提到過，我們在膝蓋方面所做的介紹中沒有任何臀部間隙，有 0 間隙。

I'm excited about the upcoming product launches in Europe. Let's not forget, we don't have Persona revision in EMEA. That's an almost $2 billion product here in the U.S., $2 billion over the last 4 -- 3, 4 years in gross sales. And let's not forget, we also bring in Oxford Partial Cementless from Europe here to the U.S. So strength in the knee portfolio, strengths in the hip portfolio.

我對即將在歐洲推出的產品感到興奮。我們不要忘記，我們在歐洲、中東和非洲地區沒有 Persona 修訂版。在美國，這是一款價值近 20 億美元的產品，過去 4、3、4 年的總銷售額為 20 億美元。我們不要忘記，我們也將牛津部分無骨水泥從歐洲引進到美國，因此膝蓋產品組合的優勢，臀部產品組合的優勢。

You've seen that S.E.T. we made a commitment that S.E.T as a category will grow mid-single digit or above. It's the third consecutive quarter where we're seeing that. And that's going to stay around. So I would say, strength in innovation, the strength in commercial execution and the 5% to 6% to us is an admissible commitment.

你已經看過 S.E.T.我們承諾 S.E.T 作為一個類別將實現中個位數或以上的成長。這是我們連續第三個季度看到這種情況。這種情況將繼續存在。所以我想說，創新的力量、商業執行的力量以及給我們的5%到6%是一個可以接受的承諾。

Okay. And then following up on OsseoTi. Can you remind us where your cementless mix stands today in the U.S.? And over what time frame you think you could close the gap between your current penetration and where Stryker is at the moment?

好的。然後跟進 OsseoTi。您能提醒我們您的無水泥混合物目前在美國的情況嗎？您認為在什麼時間範圍內可以縮小您目前的滲透率與 Stryker 目前的水平之間的差距？

Absolutely. So closing the Q1 quarter approaching 20%. So it's fairly similar to robotics. So cementless is approaching 20%. We'll break down some of these commitments, we keep repeating the same answer at the Investor Day. But our expectation, our ambition is to be where our competitors are, 60% 6-0. We'll provide time lines in that regard, but the north star is to have robotic penetration in the 60% range and cementless penetration in the 60%. So the fact that today we're at 20%, that tells you that there is pretty significant upside, and we're excited about the journey.

絕對地。因此，第一季末的成長率接近 20%。所以它與機器人非常相似。所以無水泥已經接近20%。我們將打破其中一些承諾，我們在投資者日不斷重複相同的答案。但我們的期望和目標是達到我們競爭對手的水平，60% 6-0。我們將提供這方面的時間表，但北極星目標是機器人滲透率在 60% 範圍內，無水泥滲透率在 60% 範圍內。因此，今天我們的成長率為 20%，這表明存在相當大的上升空間，我們對這個過程感到興奮。

Chris, thanks for the question. Katie, I think we have time for maybe one more question in the queue.

克里斯，謝謝你的提問。凱蒂，我想我們還有時間回答隊列中的另一個問題。

I'll go next to Shagun Singh with RBC.

我將與 RBC 一起去 Shagun Singh 旁邊。

So it seems like orthopedic robotics uptake stepped up for the market in Q1 or at least it was better than expected. Has anything changed from a capital appetite standpoint -- any reason you are seeing more upfront sales versus operating leases? And then just a follow-up on M&A. Ivan, you had indicated that you want to be -- you want to go bigger and bolder and we haven't seen a whole lot of that yet. I appreciate all the commentary on deal capacity of up to $2 billion and favoring tuck-ins. But very specifically, how do you plan to raise your weighted average market growth from 4% today mostly with tuck-ins?

因此，第一季市場上整形外科機器人的採用似乎有所增加，或至少比預期要好。從資本偏好的角度來看，有什麼改變嗎？然後是併購的後續行動。伊万，你曾表示你想要變得更大、更大膽，但我們還沒有看到很多這樣的情況。我很欣賞所有關於高達 20 億美元的交易能力和支持折騰的評論。但非常具體的是，您計劃如何透過增加收入來提高目前 4% 的加權平均市場成長率？

So starting with robots and capital dynamics. Look, I will tell you one thing that is pretty prevalent is that here in the U.S., we've seen the cases move today, I see not a week goes by that is not a new ASC opening. And those ASCs do want to acquire robotics and you either install or you purchase it. And we saw a dynamic in Q1 where we saw more purchases.

所以從機器人和資本動態開始。聽著，我要告訴你的一件非常普遍的事情是，在美國，我們今天看到病例發生變化，我發現每週都有新的 ASC 開放。這些 ASC 確實想要獲得機器人技術，而你要么安裝要么購買它。我們在第一季看到了動態，購買量增加。

We do believe this is driven by ASC dynamics. Capital continues to be strong across key markets. So definitely not a gating factor. And again, as I mentioned early, excited about the continuity here. In terms of your second question on M&A, look, we want to be bigger and bolder, at the same time, we don't want to be reckless. And I will say that all along. So we're going to stick to the strategic and financial thresholds. We got the pipeline, we got the money. And when it is time to act, we'll act on it. And we're not going to take the past as an indicator of how we're going to do things in the present and future.

我們確實相信這是由 ASC 動態驅動的。主要市場的資本持續強勁。所以絕對不是一個門控因素。正如我之前提到的，我對這裡的連續性感到興奮。關於你關於併購的第二個問題，我們希望做得更大、更大膽，同時我們不想魯莽。我會一直這麼說。因此，我們將堅持策略和財務門檻。我們得到了管道，我們得到了錢。當需要採取行動時，我們就會採取行動。我們不會把過去當作我們現在和未來如何做事的指標。

The breakdown on the WAMGR, we'll cover that as well once we get into the Investor Day. And it is a combination of organic and inorganic means. So we'll talk about the pipeline. I already mentioned -- we already mentioned that 80%, if not 90% of the new products in the pipeline are in markets that are growing above 4%, in some cases above 5%. So that's definitely a driver and then the combination of tuck-in deals and maybe some bolder moves will get us to the WAMGR that we deserve. So more to come in that regard. Thanks for the question.

關於 WAMGR 的細分，我們也會在投資者日介紹。它是有機和無機手段的結合。所以我們將討論管道。我已經提到過——我們已經提到過，80%（如果不是 90%）正在研發中的新產品都位於成長超過 4% 的市場，在某些情況下超過 5%。因此，這絕對是一個驅動因素，然後將大量交易和一些更大膽的舉措相結合，將使我們達到我們應得的 WAMGR。因此，在這方面還有更多內容。謝謝你的提問。

I think we come in to the end of the call. So I'm just going to briefly close with closing comments. I will start by saying that it's great to be here at home in Warsaw, Indiana today to celebrate our Founder's Day. So May 2, 1927, we started the company with a very clear purpose to alleviate pain and improve the quality of life for people around the world. So 97 years later, I just can say that we're just getting started. So excited to see where we are as a company.

我想我們的通話已經結束了。因此，我將簡單地以結束語作為結束語。首先我要說，很高興今天能在印第安納州華沙的家中慶祝我們的創辦人日。因此，1927 年 5 月 2 日，我們創立了這家公司，其目標非常明確，即減輕世界各地人們的痛苦並提高他們的生活品質。 97 年後，我只能說我們才剛開始。很高興看到我們公司的現狀。

It's an exciting time to be at Zimmer Biomet. The portfolio is where it needs to be. We have strong commercial execution. We are very, very confident on our guidance for the year 2024. We are excited about what is to come in '25 and '26 once we are able to discuss the long-range plan. So that is seen by confidence and excitement.

這是 Zimmer Biomet 的一個激動人心的時刻。投資組合就在它需要的地方。我們擁有強大的商業執行力。我們對 2024 年的指導非常非常有信心。所以這是透過信心和興奮看到的。

And before closing, I want to thank Keri for 4.5 great years with us. You've been a trusted partner, a great friend. You're going to be missed, although I'm going to continue to call you and seek your advice in many, many years to come. So thank you, Keri, and thanks, everybody.

在結束之前，我要感謝 Keri 與我們一起度過了 4.5 年的美好時光。您一直是值得信賴的合作夥伴、好朋友。我們會想念你的，儘管我會在未來的許多年裡繼續打電話給你並尋求你的建議。謝謝你，克里，謝謝大家。

Thanks, everyone, for joining. We'll be talking to all of you today. If you have questions, of course, please don't hesitate to reach out to the IR team. Thank you again for joining the call this morning.

謝謝大家的加入。今天我們將與大家交談。當然，如果您有疑問，請隨時聯繫 IR 團隊。再次感謝您今天早上加入電話會議。

That will conclude today's call. We appreciate your participation.

今天的電話會議到此結束。我們感謝您的參與。