Zimmer Biomet Holdings Inc (ZBH) 2024 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Zimmer Biomet Biomet fourth quarter 2024 earnings conference call.

女士們、先生們，早安，歡迎參加 Zimmer Biomet Biomet 2024 年第四季財報電話會議。

(Operator Instructions) As a reminder, this conference is being recorded today, February 6, 2025.

(操作員指示) 提醒一下，本次會議將於今天（2025 年 2 月 6 日）進行錄製。

Following today's presentation, there will be a question and answer session.

今天的演講結束後，將有一個問答環節。

At this time, all participants and journalists are in listen only mode.

目前，所有參與者和記者都處於僅聆聽模式。

(Operator Instructions) I would now like to turn the conference over to David DeMartino, Senior Vice President, Investor Relations.

（操作員指示）現在，我想將會議交給投資者關係高級副總裁 David DeMartino。

Please go ahead.

請繼續。

Thank you, Operator, and good morning, everyone.

謝謝接線員，大家早安。

Welcome to Zimmer Biomet Biomet's fourth quarter 2024 earnings conference call.

歡迎參加 Zimmer Biomet Biomet 2024 年第四季財報電話會議。

Joining me on today's call are Iwan Tornos, our President and CEO, and Suky Upadhyay, our CFO and EVP, Finance, Operations and Supply Chain.

參加今天電話會議的還有我們的總裁兼執行長 Iwan Tornos 和我們的財務長兼財務、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.

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。

Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties.

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。

For a detailed discussion of these risks and uncertainties, in addition to the inherent limitations of such forward-looking statements, please refer to our SEC filings, including those recently filed related to Paragon 28.

有關這些風險和不確定性的詳細討論，以及此類前瞻性陳述的固有局限性，請參閱我們的 SEC 文件，包括最近提交的與 Paragon 28 相關的文件。

Please note we assume no obligation to update these forward-looking statements even if actual results or future expectations change materially.

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。

Additionally, the discussions on this call will include certain non-GAAP financial measures, some of which are forward-looking non-GAAP financial measures.

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指標，其中一些是前瞻性的非公認會計準則財務指標。

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 fourth quarter earnings release, which can be found on our website zimmerbiomet.com.

這些指標與最直接可比較的 GAAP 財務指標的對帳以及計算這些指標的基礎的解釋包含在我們的第四季度收益報告中，可在我們的網站 zimmerbiomet.com 上找到。

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

說完這些，我會把電話轉給伊凡。

Ivan?

伊万？

Good morning, everyone, and thank you for joining today's call.

大家早安，感謝大家參加今天的電話會議。

I would like to start today the way that I always do, by taking a moment to recognize and to show my sincere gratitude to the over 17,000 Zimmer Biomet Biomet team members who each and every day across the globe move our business and our mission forward.

今天，我想像往常一樣，首先花點時間認識並向 17,000 多名 Zimmer Biomet 團隊成員表示誠摯的感謝，他們每天在全球推動著我們的業務和使命向前發展。

Thank you for your commitment.

感謝您的承諾。

Thank you for your tireless work, your strong performance.

感謝您不懈的努力和出色表現。

And most importantly, thank you for what you do every day to serve our customers and patients.

最重要的是，感謝您每天為我們的客戶和患者所做的服務。

Thanks to your efforts in 2024, we, at Zimmer Biomet were able to impact the lives of over 4.3 million patients.

感謝您在 2024 年的努力，我們 Zimmer Biomet 能夠影響超過 430 萬患者的生活。

This is a phenomenal data point that now continues to inspire all of us to the core, 4.3 million patients.

這是一個驚人的數據點，它現在繼續激勵著我們所有人，430萬名患者。

As I said in the past, and as I will continue to say, the Zimmer Biomet workforce and the culture that we have here truly is one of our key competitive advantages.

正如我過去所說的，我會繼續說，Zimmer Biomet 的員工隊伍和我們的文化確實是我們的主要競爭優勢之一。

During the call today, I'm going to cover three things.

在今天的電話會議中，我將討論三件事。

First, I'll provide a general overview of the fourth quarter on broad market dynamics.

首先，我將對第四季的整體市場動態做一個總體概述。

Secondly, I'll talk about our 2025 outlook and the drivers of performance for the year and beyond 2025.

其次，我將談談我們對 2025 年的展望以及今年及 2025 年後業績的驅動因素。

And then lastly, I'll briefly talk about the recently announced Paragon 28 acquisition.

最後，我將簡要地談談最近宣布的 Paragon 28 收購。

After this, Suky is going to cover all financials in more detail.

在此之後，Suky 將更詳細地介紹所有財務狀況。

I will make sure as always to leave plenty of time for your questions.

我將一如既往地留出足夠的時間來解答您的問題。

To begin, I'm very happy to report that in the fourth quarter of 2024 we grew sales nearly 5% constant currency.

首先，我很高興地報告，2024 年第四季我們的銷售額以固定匯率計算成長了近 5%。

This marks the 12th consecutive quarter of mid single digit or better constant currency revenue growth for Zimmer Biomet.

這標誌著 Zimmer Biomet 連續第 12 個季度實現中等個位數或更高的恆定貨幣收入成長。

This performance in the quarter was driven by mid single digit growth in hips and knees as well as upper single digit growth in S.E.T. These results are particularly noteworthy, given the backdrop of the ERP implementation challenges outlined in September.

本季的業績得益於髖關節和膝關節的中等個位數成長以及 S.E.T.的高個位數成長。考慮到 9 月概述的 ERP 實施挑戰的背景，這些結果尤其值得注意。

In line with our expectations, we have now exited 2024 at pre-ERP shipping levels as evidenced by the large volume of shipments that we saw in the quarter.

根據我們的預期，到 2024 年，我們的出貨量已經恢復到 ERP 之前的水平，這從我們本季看到的大量出貨量就可以看出。

Beyond commercial execution and the outcomes of innovative product launches, our performance was fueled by mid-single digit growth in ERM markets, which we anticipate will continue based on all the analytics that we have at hand involving both primary and second party sources.

除了商業執行和創新產品發布的成果之外，我們的業績還受到 ERM 市場中個位數成長的推動，根據我們掌握的涉及一手和第二方來源的所有分析數據，我們預計這種增長還將持續下去。

An aging and increasing active population, technological advancements, improving patient care dynamics around the world, the shift of procedures to outpatient settings like the ASC here in the US, as well as data showcasing best in class clinical outcomes, will continue to provide tailwinds to these market dynamics and the growth should continue in the coming years.

人口老化和人口活躍度的提高、技術進步、全球患者護理水平的提高、治療程序向美國 ASC 等門診環境的轉移、以及展示一流臨床結果的數據，將繼續為這些市場動態提供推動力，並且未來幾年增長趨勢仍將持續。

So again, we see these markets as being very healthy, and we do not expect these markets to slow down.

因此，我們再次認為這些市場非常健康，我們預計這些市場不會放緩。

It is important to note that with the solid closing of the fourth quarter, despite some of the challenges in the year 2024, including the already mentioned ERP disruption, we were able to manage the business consistent with our original 2024 financial guidance.

值得注意的是，儘管 2024 年面臨一些挑戰，包括前面提到的 ERP 中斷，但我們仍然能夠按照我們最初的 2024 年財務指導來管理業務，儘管第四季度的穩健收官取得了成功。

So this means delivering near 5% constant currency revenue growth, $8 in adjusted earnings per share, and free cash flow of $1.50 billion.

因此，這意味著實現近 5% 的固定匯率收入成長、每股 8 美元的調整後收益和 15 億美元的自由現金流。

As we look into 2025, we are providing full year financial guidance of constant currency revenue growth of 3% to 5% and adjusted earnings per share of $8.15 to $8.35, which excludes any impact from the Paragon 28 acquisition.

展望 2025 年，我們提供了全年財務指導，即按固定匯率計算的收入增長 3% 至 5%，調整後每股收益為 8.15 美元至 8.35 美元，這不包括 Paragon 28 收購的影響。

These financials are aligned with the LRP, long range plan, commitments that we highlighted at our investor event in May of 2024 in New York, which, as a reminder, involves growing revenue at mid single digits over the planned period while ensuring that EPS is growing faster than revenue and free cash flow is growing at least 100 basis points faster than EPS.

這些財務狀況與我們在 2024 年 5 月於紐約舉行的投資者活動中強調的 LRP（長期計劃）承諾相一致，提醒一下，這涉及在計劃期間內以中等個位數增長收入，同時確保每股收益的增長速度快於收入，自由現金流的增長速度至少比每股收益快 100 個基點。

Again, revenue in the mid single digit range, EPS growing faster than revenue and free cash flow growing at least 100 basis points faster than EPS.

再次，營收處於中等個位數範圍，每股盈餘成長速度快於收入，自由現金流成長速度比每股盈餘快至少 100 個基點。

Suky's going to provide more details in his prepared remarks coming up.

Suky 將在即將發表的準備好的發言中提供更多細節。

As we enter 2025, our priorities have not changed.

當我們進入 2025 年時，我們的優先事項並沒有改變。

We're going to continue to overindex on people and culture, priority number one, operational excellence, number two, and thirdly, innovation and diversification.

我們將繼續高度重視人才和文化，這是第一要務，其次是卓越運營，第三是創新和多元化。

Today, I want to break down these three priorities in a more specific fashion in what we call a four-point plan across the three key priorities of Zimmer Biomet.

今天，我想以更具體地說明這三個優先事項，我們稱之為 Zimmer Biomet 的三個關鍵優先事項的四點計劃。

Firstly, in the priority of people and culture, we're going to continue to ensure that we have the right people in the right jobs.

首先，在人才和文化優先方面，我們將繼續確保將合適的人才放在合適的職位上。

To that end, we have added new leadership in key categories across the enterprise like a new President for Global Hips, a new President for Global Knees, a new appointed President for Offset business, and a new leader for Global Medical Education.

為此，我們在整個企業的關鍵類別中增加了新的領導層，例如新的全球髖關節業務總裁、新的全球膝關節業務總裁、新任命的偏移業務總裁以及​​全球醫學教育的新領導者。

Secondly, in alignment with our strategic priority of operational excellence, we are committed to elevating our performance in the critical US market.

其次，為了配合我們卓越營運的策略重點，我們致力於提升我們在關鍵的美國市場的表現。

We know that our performance has not been consistent, and we're going to do a far better job in this regard.

我們知道我們的表現並不穩定，在這方面我們會做得更好。

This means specializing more aggressively in S.E.T., ensuring that we have the right go to market formula in all key franchises with the right productivity and the right talent, adding new capabilities and expanding the portfolio and partnerships in the ASC environment.

這意味著要更積極地專注於 S.E.T.，確保我們在所有關鍵特許經營中都有正確的市場進入方式、正確的生產力和正確的人才，增加新的能力並擴大 ASC 環境中的投資組合和合作夥伴關係。

We like where we are, we want to be bolder in ASCs.

我們喜歡我們現在的狀態，我們希望在 ASC 中表現得更大膽。

And continue to launch innovative solutions in robotics while ensuring that we also have the right number of headcounts to drive growth in this vital area.

並繼續在機器人領域推出創新解決方案，同時確保我們擁有足夠數量的員工來推動這一重要領域的成長。

In the background of all of this, we have now announced the boldest direct to patient program in the history of the organization with no less than Arnold Schwarzenegger himself as a Chief Movement Officer.

在這一切的背景下，我們現在宣布了該組織歷史上最大膽的直接面向患者計劃，並由阿諾德施瓦辛格本人擔任首席行動官。

Much more to come in this area, truly are excited about the potential here in the US.

這個領域還有更多的發展，我們對美國的潛力確實感到興奮。

Thirdly, in the area of innovation and diversification, we plan to launch over 50 new products in the next 36 months with several of these products being new to the world product launches.

第三，在創新和多樣化方面，我們計劃在未來36個月內推出50多種新產品，其中一些產品是首次在全球推出。

So it's not just the quantity of products, but it's the quality and the disruption associated with these products that excites us here at Zimmer Biomet.

因此，令 Zimmer Biomet 感到興奮的不僅是產品的數量，還有這些產品的品質和顛覆性。

To touch on a few of those, started with knees, our US portfolio was strengthened in 2024 with approvals of the Oxford Partial Cementless knee; the clearance of the 30 millimeter, the short version of Persona IQ; and some other place in our knee portfolio.

先說幾個，先從膝關節開始，2024 年牛津部分無骨水泥膝關節獲得批准，我們的美國產品組合得到了加強； 30毫米的間隙，Persona IQ的縮短版；以及我們膝蓋投資組合中的其他地方。

We anticipate Oxford and Persona IQ to contribute to growth in the second half of 2025.

我們預計 Oxford 和 Persona IQ 將在 2025 年下半年促進成長。

These products combined with the steady adoption of our Persona OsseoTI cementless knee, will position us strongly in the US market.

這些產品加上我們 Persona OsseoTI 非骨水泥膝關節的穩定推廣，將使我們在美國市場中佔據強勢地位。

We're very excited in terms of our knee portfolio, and we really look forward to a acceleration of the growth in knees, especially as we enter the second half of 2025.

我們對我們的膝關節產品組合感到非常興奮，我們非常期待膝關節增長的加速，特別是在進入 2025 年下半年時。

Internationally, late last year in 2024, we received the CMR for Persona Revision.

在國際上，去年年底，即 2024 年，我們收到了 Persona Revision 的 CMR。

This is already the leading revision implant in the US and we expect this launch to accelerate throughout 2025. 2024 was also a transformational year for our few franchise, we launched Z1 or triple-taper stem and HAMMR or surgical impactor.

這已經是美國領先的修復植入物，我們預計該產品的推出將在 2025 年加速。

These two products, in addition of the closing of the OrthoGrid acquisition, which enables best-in-class navigation to surgeons as well as our hip insight portfolio, the only FDA clear mixed reality, are going to position us to grow hips in a very meaningful way as we enter 2025.

這兩款產品，加上完成對 OrthoGrid 的收購，為外科醫生提供了一流的導航，以及我們的髖關節洞察產品組合（唯一獲得 FDA 批准的混合現實），將使我們在進入 2025 年時以非常有意義的方式發展髖關節。

I also like that with the acquisition of OrthoGrid in conjunction with HipInsights and (inaudible) Hip Navigation, we now have the broadest navigation portfolio in hip surgery.

我也很高興透過收購 OrthoGrid 以及 HipInsights 和（聽不清楚）Hip Navigation，我們現在擁有髖關節手術領域最廣泛的導航產品組合。

Again, very excited about where we are with Knees and where we are with hips, not having the most robust portfolio in Recon since the merger of Zimmer and Biomet going back to June of 2015.

再次，我們對膝蓋和髖關節的現狀感到非常興奮，自從 2015 年 6 月 Zimmer 和 Biomet 合併以來，Recon 的投資組合並不是最強大的。

While we could not be more excited with our knee and hip products, Zimmer Biomet is today much more than just large joints.

儘管我們對我們的膝關節和髖關節產品感到非常興奮，但 Zimmer Biomet 如今已不再僅限於大關節。

Within S.E.T. ROSA Shoulder has the potential to meaningfully expand the shoulder arthroplasty market by improving the accuracy and reproducibility of the procedure.

在 S.E.T. 內ROSA Shoulder 有潛力透過提高手術的準確性和可重複性來顯著擴大肩關節置換術市場。

ROSA shoulder was the first robotic shoulder system in the world, and it is the only robot in shoulders that can perform both anatomic and reverse procedures.

ROSA 肩部機器人是世界上第一個肩部機器人系統，也是唯一可以同時執行解剖和逆向手術的肩部機器人。

Additionally, in November of last year, we received FDA clearance for OsseoFit Shoulder.

此外，去年 11 月，我們獲得了 FDA 對 OsseoFit Shoulder 的批准。

The first assymetric stemless shoulder system in the US.

美國首個不對稱無柄肩系統。

We are in full launch mode as we speak and are receiving great feedback from customers all across the US.

目前，我們正處於全面啟動模式，並收到了來自全美各地客戶的正面回饋。

Finally, Zimmer Biomet continues to innovate within robotics.

最後，Zimmer Biomet 持續在機器人技術領域進行創新。

We're going to be introducing a number of new ROSA applications in the short to midterm, including CT scan capabilities, kinematic alignment for knees and a posterior hip robotic approach, which is a huge need in the growing international markets.

我們將在短期至中期內推出許多新的 ROSA 應用，包括 CT 掃描功能、膝蓋運動校準和後髖機器人方法，這些都是不斷增長的國際市場的巨大需求。

ROSA is already the leading orthopedic grower in Europe.

ROSA 目前已是歐洲領先的骨科種植者。

And with these updates, we anticipate continued global share gains.

透過這些更新，我們預計全球份額將繼續成長。

While we continue to launch innovative solutions to address the needs of our growing markets, we're also going to continue to look for responsible inorganic opportunities that feel are strategic financial and risk return metrics, which we need to do in order to diversify Zimmer Biomet and in order to realize our aspiration of residing in a 5% Vanguard environment by the end of 2027.

在我們繼續推出創新解決方案來滿足不斷增長的市場需求的同時，我們也將繼續尋找負責任的無機投資機會，這些機會被認為是策略性的財務和風險回報指標，我們需要這樣做才能實現 Zimmer Biomet 的多元化，並實現我們在 2027 年底前進入 5% 先鋒環境的願望。

The fourth point in our plan touches on the strategic priority of operational excellence and specifically on how Zimmer Biomet plans to drive margin improvement over the planned period while also reducing inventory needs, hence, increasing our free cash flow generation.

我們計劃的第四點涉及卓越營運的策略重點，特別是 Zimmer Biomet 計劃如何在計劃期內推動利潤率提高，同時減少庫存需求，從而增加我們的自由現金流產生。

The plan is already in motion.

該計劃已在實施中。

We achieved results according to our expectations in 2024, and we shall see an acceleration as we progress throughout the year 2025.

2024 年，我們按照預期取得了成果，而 2025 年，我們的進步將更加迅速。

The execution of these four points mentioned above is going to undoubtedly set Zimmer Biomet for success just in 2025, but also in years to come.

上述四點的實施無疑將為 Zimmer Biomet 在 2025 年乃至未來幾年的成功奠定基礎。

And by executing on these 4 things, we'll make sure to deliver on our revenue, earnings per share and free cash flow goals in accordance with the commitments highlighted in our long-range plan.

透過執行這四件事，我們將確保根據我們的長期計劃中強調的承諾實現我們的收入、每股盈餘和自由現金流目標。

I want to close today's call discussing the very exciting news that we shared recently on the M&A front.

我想結束今天的電話會議，討論我們最近在併購方面分享的非常令人興奮的消息。

To complement our product cycle on January 28, we entered into a definitive agreement to acquire Paragon 28, which is a leader in the rapidly growing $5 billion foot and ankle space.

為了補充我們的產品週期，1 月 28 日，我們簽署了收購 Paragon 28 的最終協議，該公司是快速成長的價值 50 億美元的足部和踝關節領域的領導者。

I could not be more excited about this partnership.

我對這次合作感到無比興奮。

We maintain our desire to diversify into higher-growth segments through disciplined M&A, and this transaction checks the growth, accretion dilution and all the strategic boxes that we've been discussing for quite some time.

我們始終希望透過嚴謹的併購，實現業務多元化，進入更高成長的領域，而此次交易符合我們長期以來一直在討論的成長、增值稀釋和所有策略要求。

Strategically, once the transaction closes, anticipated to be in the first half of 2025, Paragon 28 is expected to expand our foot and ankle deformity offerings, while bolstering our existing fracture and trauma as well as joint replacement portfolios.

從策略上講，一旦交易完成（預計將在 2025 年上半年），Paragon 28 預計將擴大我們的足部和踝關節畸形產品系列，同時增強我們現有的骨折和創傷以及關節置換產品組合。

It is going to move Vanguard in the right direction.

這將使先鋒公司朝著正確的方向發展。

It is going to complement Zimmer Biomet global footprint, existing infrastructure with Paragon 28's expansive portfolio and it's going to help us drive our US growth and international growth.

它將與 Zimmer Biomet 的全球業務佈局和現有的基礎設施以及 Paragon 28 的廣泛產品組合形成互補，並幫助我們推動美國和國際業務的成長。

One very exciting area of this partnership is going to be the ability to expedite or penetration opportunities in the fast-growing ASC market where foot and ankle procedures carry a very beneficial reimbursement -- reimbursement that we're not capitalizing on today while also creating cross-selling opportunities.

此次合作的一個非常令人興奮的領域是能夠加快或滲透快速成長的 ASC 市場的機會，在這個市場中，足部和踝關節手術的報銷非常有利——我們今天沒有利用的報銷，同時也創造了交叉銷售機會。

Lastly, this partnership is going to strengthen Zimmer Biomet's leadership position across muscular skeletal health and lower extremities.

最後，此次合作將加強 Zimmer Biomet 在肌肉骨骼健康和下肢領域的領導地位。

I could not be more excited about how we enter in 2025 and we very much look forward to welcoming the great leaders of Paragon 28, including the Chairman and CEO, Albert DaCosta, to the Zimmer Biomet family.

我對我們即將邁入 2025 年的計劃感到無比興奮，我們非常期待歡迎 Paragon 28 的偉大領導者，包括董事長兼首席執行官 Albert DaCosta，加入 Zimmer Biomet 大家庭。

In conclusion, we are very proud of the progress of organization.

總之，我們對組織的進步感到非常自豪。

And we very much look forward to continuing to execute above and beyond expectations.

我們非常期待繼續超越預期。

We have a very simple yet compelling plan, and we will execute on it.

我們有一個非常簡單但令人信服的計劃，我們將執行它。

A lot of the fact that we're impacting the lives of millions of people, and I'm deeply inspired every day in knowing that my teammates and I are leaving the Zimmer-Biomet mission of elevating pain and improving the quality of life for people around the world.

事實上，我們影響著數百萬人的生活，當我得知我和我的隊友們正在履行 Zimmer-Biomet 的使命，即減輕疼痛、改善世界各地人們的生活品質時，我每天都深受鼓舞。

And with that, I'll turn the call now over to Suky.

說完這些，我現在將電話轉給 Suky。

Thank you very much.

非常感謝。

Thanks, and good morning, everyone.

謝謝，大家早安。

As Ivan mentioned, we closed another solid year, demonstrating the resilience and winning attitude of our team members.

正如 Ivan 所提到的，我們度過了又一個豐收的一年，展現了我們團隊成員的韌性和必勝態度。

Despite the challenges we faced, we grew sales nearly 5% on a constant currency basis, expanded adjusted operating margins by 40 basis points, grew adjusted earnings per share by 6% to $8 and generated over $1 billion in free cash flow.

儘管面臨挑戰，我們的銷售額以固定匯率計算增長了近 5%，調整後營業利潤率提高了 40 個基點，調整後每股收益增長了 6%，達到 8 美元，並產生了超過 10 億美元的自由現金流。

Looking at this quarter's results, unless otherwise noted, my statements will be about the fourth quarter of 2024 and how it compares to the same period in 2023.

縱觀本季的結果，除非另有說明，我的陳述將涉及 2024 年第四季以及與 2023 年同期的比較。

And my commentary will be on a constant currency and adjusted operating basis.

我的評論將基於固定匯率和調整後的營業基礎。

2025 guidance commentary will exclude any impact of the recently announced Paragon 28 acquisition.

2025 年指導評論將排除最近宣布的 Paragon 28 收購的任何影響。

Net sales were $2.23 billion, an increase of 4.3% on a reported basis and 4.9%, excluding the impact of foreign currency.

淨銷售額為 22.3 億美元，報告期間內成長 4.3%，排除外匯影響則成長 4.9%。

Consolidated pricing was positive 60 basis points, marking the fourth consecutive quarter of positive pricing.

綜合定價為正 60 個基點，這是連續第四季度呈現正定價。

Overall, results were underpinned by healthy end markets with good leading indicators on demand for new products.

整體而言，業績受到健康的終端市場和新產品需求良好領先指標的支持。

Our US business grew 4.7%, driven by strong high single-digit growth in S.E.T. While international grew 5.2%, driven by high single-digit growth in knees and S.E.T. It's great to see that our global S.E.T growth continues to outpace both knees and hips.

在 S.E.T. 強勁個位數成長的推動下，我們的美國業務成長了 4.7%。而國際市場則成長了 5.2%，這得益於膝關節和 S.E.T. 的高個位數成長。很高興看到我們的全球 S.E.T 增長速度繼續超過膝蓋和臀部。

Importantly, once the Paragon 28 transaction is closed, the combined S.E.T. segment is expected to be larger than our hip franchise and is expected to continue to grow faster than both our knee and hip segments.

重要的是，一旦 Paragon 28 交易完成，合併後的 S.E.T.預計該細分市場的規模將大於我們的髖關節特許經營權，並且預計將繼續以比我們的膝關節和髖關節細分市場更快的速度成長。

This aligns with our strategy to diversify into faster-growth markets.

這符合我們向更快成長市場的多元化策略。

Global knees grew 5.6% in the quarter with the US growing 3.9% and international growing 8%.

本季全球膝關節置換成長 5.6%，其中美國成長 3.9%，國際成長 8%。

We continue to see good uptake from our Persona portfolio and increased penetration of ROSA.

我們繼續看到 Persona 產品組合的良好成長勢頭以及 ROSA 的滲透率不斷提高。

Global Hips grew 4%, with the US growing 3.2% and international growing 4.8%.

全球臀部指數成長了 4%，其中美國成長了 3.2%，國際成長了 4.8%。

While still in early days, we are encouraged by the feedback on Z1 and look forward to accelerating the rollout of HAMMR in tandem with OrthoGrid.

雖然仍處於早期階段，但我們對 Z1 的反饋感到鼓舞，並期待與 OrthoGrid 一起加速推出 HAMMR。

We now have a complete product portfolio in hips and we'll be accelerating our offensive strategy as 2025 progresses.

我們現在擁有完整的髖關節產品組合，隨著 2025 年的到來，我們將加速我們的進攻策略。

Next, our S.E.T. segment grew 8.4%, led by CMFT at 13%, Sports at 22% and upper extremities at 8%.

接下來是我們的 S.E.T。該部門增長了 8.4%，其中 CMFT 增長了 13%，體育增長了 22%，上肢增長了 8%。

This marks the fifth consecutive quarter of at least mid-single-digit growth in S.E.T., a trend we expect to continue.

這標誌著 S.E.T. 連續第五個季度實現至少中等個位數成長，我們預計這一趨勢將會持續下去。

Finally, we renamed the other category to technology and data, bone cement and surgical to better represent the revenue within that segment.

最後，我們將另一個類別重新命名為技術和數據、骨水泥和外科手術，以更好地代表該領域的收入。

This segment declined 4.3% due to tough comps from the prior year.

由於與上年同期相比業績不佳，該部門下降了 4.3%。

Turning to our P&L.

轉向我們的損益表。

We reported GAAP diluted earnings per share of $1.20 compared to GAAP diluted earnings per share of $2.01 in the prior year.

我們報告的 GAAP 稀釋每股收益為 1.20 美元，而去年的 GAAP 稀釋每股收益為 2.01 美元。

Higher sales and operating profit in tandem with a lower share count were more than offset by higher nonoperating expenses and higher taxes, including a onetime gain in 2023 that did not repeat.

銷售額和營業利潤的增加以及股票數量的減少被營業外支出和稅收的增加所抵消，其中包括 2023 年未重複的一次性收益。

On an adjusted basis, we delivered diluted earnings per share of $2.31 compared to $2.20 in the prior year, with earnings per share growing faster than revenue.

經調整後，我們的每股攤薄收益為 2.31 美元，而去年同期為 2.20 美元，每股收益成長速度快於營收成長速度。

Of note, FX headwinds were more challenging in the quarter than originally expected and accounted for about $0.05 of earnings per share erosion when compared to 2023.

值得注意的是，本季外匯逆風比最初預期的更具挑戰性，與 2023 年相比，每股收益損失約 0.05 美元。

Adjusted gross margin was 71.3%, lower than 2023, as previously guided, due primarily to prior year capitalized cost increases that impacted this year's P&L.

調整後的毛利率為 71.3%，低於先前的預期，即 2023 年的水平，這主要歸因於前一年資本化成本增加影響了今年的損益表。

Adjusted operating margin was 30.8%, 50 basis points higher than the prior year due to revenue leverage and continued efficiencies across SG&A.

調整後的營業利益率為 30.8%，比上年高出 50 個基點，這得益於收入槓桿以及銷售、一般及行政開支的持續效率。

Net interest and other adjusted nonoperating expenses were $62 million, higher than the prior year driven by higher debt and higher interest rates on refinance debt that matured in 2024.

淨利息和其他調整後的非營業支出為 6,200 萬美元，高於上年，原因是債務增加以及 2024 年到期的再融資債務利率上升。

Our adjusted tax rate was 17.5%, higher than 2023, driven by the implementation of Pillar 2 and fully diluted share outstanding were $200 million, down year-over-year as a result of our share buybacks.

我們的調整後稅率為 17.5%，高於 2023 年，這得益於第二支柱的實施，且全面攤薄的流通股為 2 億美元，由於我們的股票回購而同比下降。

Turning to cash and liquidity.

轉向現金和流動性。

Our working capital initiatives targeted towards inventory reduction are paying off as we reduced days on hand by almost 50 days, ending the year at approximately 375 days.

我們旨在減少庫存的營運資本措施正在取得成效，因為我們將庫存天數減少了近 50 天，年底庫存天數約為 375 天。

This contributed to operating cash flow of $506 million and free cash flow of $403 million, bringing 2024 free cash flow to $1.055 billion or in the range we originally guided at the beginning of 2024.

這貢獻了 5.06 億美元的營運現金流和 4.03 億美元的自由現金流，使 2024 年的自由現金流達到 10.55 億美元，或在我們在 2024 年初最初指導的範圍內。

We ended the quarter with $526 million of cash and cash equivalents.

截至本季末，我們的現金和現金等價物為 5.26 億美元。

Aligned with our capital allocation strategies, we repurchased approximately $72 million of shares in the quarter bringing full year 2024 share repurchases to $870 million.

根據我們的資本配置策略，我們在本季回購了約 7,200 萬美元的股票，使 2024 年全年股票回購額達到 8.7 億美元。

We maintain flexibility to continue our share repurchase program and plan to continue to return cash to shareholders on an opportunistic basis over the course of our long-range plan.

我們保持靈活性，繼續執行我們的股票回購計劃，並計劃在我們的長期計劃過程中繼續有機會向股東返還現金。

Now regarding our 2025 outlook.

現在談談我們的 2025 年展望。

We expect 2025 constant currency revenue growth of 3% to 5%.

我們預計 2025 年固定貨幣收入成長率將達到 3% 至 5%。

In side of this, we expect stable end markets, flat to 50 basis points of price erosion for the full year and a modest headwind to growth due to year-over-year selling day differences.

除此之外，我們預期終端市場將保持穩定，全年價格下跌幅度將持平至 50 個基點，並且由於同比銷售日差異，成長將面臨適度阻力。

With the strengthening of the dollar at recent rates, we anticipate 150 basis points to 200 basis points of headwind from currency in 2025, resulting in reported revenue growth expectations of 1% to 3.5%.

隨著美元近期走強，我們預計 2025 年貨幣阻力將達到 150 至 200 個基點，導致報告營收成長預期為 1% 至 3.5%。

Now regarding the cadence of expected revenue results.

現在討論預期收入結果的節奏。

We expect that the second half ex FX growth will be higher than the first half due to more favorable comps related to 2024 ERP challenges, new product uptake and no selling day impact.

我們預計，由於 2024 年 ERP 挑戰、新產品的採用以及沒有銷售日影響等因素帶來的更有利的比較，下半年扣除外匯因素後的增長將高於上半年。

Importantly, the first quarter will have one less selling day compared to 2024, which we estimate to have about 100 to 150 basis point headwind on revenue growth in the quarter, putting growth at about 2% ex FX.

重要的是，與 2024 年相比，第一季的銷售日將減少一天，我們估計這將對本季的收入成長造成約 100 至 150 個基點的阻力，扣除匯率因素，成長率約為 2%。

Also, you should expect Q2 growth to be muted primarily due to tougher comps when compared to 2024.

此外，您應該預期第二季的成長將會放緩，這主要是由於與 2024 年相比競爭更為激烈。

Fully diluted earnings per share is expected to be $8.15 to $8.35. As with revenue, FX has a significant unfavorable impact on our earnings profile, creating an estimated $0.20 to $0.25 headwind on earnings per share when compared to 2024.

預計每股完全攤薄收益為 8.15 美元至 8.35 美元。與收入一樣，外匯對我們的獲利狀況產生重大不利影響，與 2024 年相比，每股盈餘預計將減少 0.20 至 0.25 美元。

We anticipate full year adjusted gross margin to be in line with 2024 and full year adjusted operating margins to increase versus the prior year, marking the fifth consecutive year of adjusted operating margin improvements.

我們預計全年調整後的毛利率將與 2024 年持平，全年調整後的營業利潤率將較上年增加，這標誌著調整後的營業利潤率連續第五年提高。

As with revenue, margins and earnings will be stronger in the second half of 2025 versus the first half of the year.

與營收一樣，2025 年下半年的利潤率和收益將比上半年更強勁。

When compared to 2024, first half gross margin and operating margins will be lower than the prior year due to the impact of higher inventory costs and higher expenses associated with new product launches, sales force specialization and direct-to-patient marketing.

與 2024 年相比，由於庫存成本增加以及新產品發布、銷售隊伍專業化和直接面向患者的營銷相關的費用增加的影響，上半年的毛利率和營業利潤率將低於上一年。

As we progress into the second half, margins will be better than 2024 due to sales leverage, lower cost inventory and the impact of ongoing efficiency programs.

隨著進入下半年，由於銷售槓桿、低成本庫存和持續效率計劃的影響，利潤率將比 2024 年更好。

Net interest and other nonoperating expenses are expected to be at least $255 million, reflecting higher rates on refinanced debt.

淨利息和其他非營業支出預計至少為 2.55 億美元，反映出再融資債務的利率上升。

Our adjusted tax rate is expected to be approximately 18% for the full year, and fully diluted shares outstanding are expected to be about 201 million shares.

我們預計全年調整後的稅率約為18%，全面稀釋的流通股預計約為2.01億股。

Despite the FX pressure on earnings, we expect 2025 free cash flow of $1.1 billion to $1.2 billion, which represents significant leverage versus revenue growth.

儘管外匯對獲利造成壓力，但我們預計 2025 年自由現金流將達到 11 億至 12 億美元，這與收入成長相比具有顯著的槓桿作用。

As laid out in our Analyst Day presentation, improvements in earnings, sunsetting of foundational investments and improvements in working capital are expected to drive improved cash conversion in 2025 and beyond.

正如我們在分析師日報告中所述，獲利改善、基礎投資的終止以及營運資本的改善預計將推動 2025 年及以後現金轉換率的提高。

As Ivan mentioned, we entered into a definitive agreement to acquire Paragon 28 last week for an upfront payment of $13 per share in cash, representing an approximate $1.1 billion equity purchase price.

正如 Ivan 所提到的，我們上週達成了收購 Paragon 28 的最終協議，預付款為每股 13 美元現金，約 11 億美元的股權購買價。

In addition, Paragon 28 shareholders will receive one non-tradable CVR, paying out up to an additional $1 per share in cash based on the achievement of certain revenue milestones.

此外，Paragon 28 股東將獲得一份不可交易的 CVR，根據實現某些收入里程碑，每股最多可額外支付 1 美元現金。

The purchase, which will be funded through a combination of cash on hand and debt is anticipated to be immediately accretive to revenue growth, approximately 3% dilutive to adjusted EPS in 2025, about 1% dilutive to adjusted EPS in 2026 and accretive to adjusted EPS within 24 months following the closing.

此次收購將透過現金和債務相結合的方式籌集資金，預計將立即增加收入成長，2025 年將使調整後每股收益攤薄約 3%，2026 年將使調整後每股收益攤薄約 1%，並在交易完成後的 24 個月內增加調整後每股收益。

We expect the transaction to close in the first half of '25, after which we will provide updated guidance for the full year.

我們預計交易將於 2025 年上半年完成，此後我們將提供全年最新指引。

It is important to note that after the closing, we expect to maintain a strong balance sheet and investment-grade credit rating with the optionality to continue to invest against our capital allocation priorities.

值得注意的是，在交易結束後，我們預計將保持強勁的資產負債表和投資等級信用評級，並可選擇繼續根據我們的資本配置重點進行投資。

I'd like to close by thanking the entire ZB team for their resilience in overcoming significant challenges in 2024.

最後，我要感謝整個 ZB 團隊在 2024 年克服重大挑戰的堅韌精神。

Through your dedication, we achieved robust financial results with sales growth of nearly 5%, adjusted operating margin expansion for the fourth straight year and over $1 billion in free cash flow.

透過您的奉獻，我們取得了強勁的財務業績，銷售額成長近 5%，調整後營業利潤率連續第四年擴大，自由現金流超過 10 億美元。

I look forward to your winning spirit in 2025.

我期待你們在 2025 年繼續保持必勝精神。

And with that, I'll turn the call back over to David.

說完這些，我會把電話轉回給大衛。

Thank you, Suky.

謝謝你，Suky。

Operator, let's open it up for questions.

接線員，讓我們開始提問。

In order for us to take as many questions as possible, please limit yourself to one question.

為了讓我們能夠回答盡可能多的問題，請將問題限制為一個。

Operator, please go ahead.

接線員，請繼續。

Thank you, David.

謝謝你，大衛。

Ladies and gentlemen, at this time, we will begin the question-and-answer session.

女士們、先生們，現在我們開始問答環節。

(Operator Instructions) Robbie Marcus, JP Morgan.

(操作員指示) 摩根大通 (JP Morgan) 的羅比·馬庫斯 (Robbie Marcus)。

Ivan, Suky, not sure who this is best for.

Ivan、Suky，不確定這對誰來說是最好的。

But wanted to ask on just the guidance philosophy in general.

但只是想問一般的指導理念。

And I think last year, it was -- we're guiding to what we think we could do.

我認為去年我們正在指導我們認為我們可以做的事情。

This year, we see what appears to be a more conservative guide both on the top and bottom line.

今年，我們看到營收和淨利的指引似乎都更保守。

How are you thinking about the guidance range in -- philosophically?

從哲學角度來說，您是如何思考指導範圍的？

And what should we be expecting throughout the year?

那麼，我們對全年該期待什麼呢？

Thank you, Robbie.

謝謝你，羅比。

Ivan here.

這裡是伊万。

So I would say that it's somewhat of a different philosophy guidance-wise from 2024.

因此我想說，從哲學指導方面來說，這與 2024 年有些不同。

And as I said before, we're not going to apologize for the guidance we delivered in 2024 early in the year, we actually met the guidance, as you heard today, in revenue, EPS, adjusted EPS and free cash flow.

正如我之前所說，我們不會為今年年初提供的 2024 年指引道歉，正如您今天所聽到的，我們在收入、每股收益、調整後每股收益和自由現金流方面實際上都達到了指引。

I think we were 20 basis points below revenue.

我認為我們的收入比預期低了20個基點。

That said, for 2025 is a different philosophy within the range that we're providing today to be appropriate.

話雖如此，但對於 2025 年來說，在我們今天提供的適當範圍內，存在著不同的理念。

I don't know if I use the word conservative, but definitely appropriate.

我不知道我是否使用了保守這個詞，但絕對合適。

Keep in mind that is 1 day less in 2025 versus 2024.

請記住，2025 年比 2024 年少 1 天。

And at the same time, Robbie will see more drivers to bring us to the upper range versus the lower range, with (inaudible) of new products.

同時，Robbie 將看到更多的驅動程序，透過（聽不清楚）新產品，將我們帶入更高範圍而不是更低範圍。

Most of them do become far more material in the second half of the year, excited about the investments we're making in the ASC and ambulatory surgical space.

他們中的大多數人確實在下半年變得更加重視我們在 ASC 和門診手術領域的投資，並對他們的熱情感到興奮。

We are adjusting some things in the US that I believe can bring us to the upper range of the guidance.

我們正在對美國的一些事情進行調整，我相信這可以使我們達到指導的上限。

Let's see where we end up in pricing four consecutive quarters of favorable pricing.

讓我們看看連續四個季度的優惠定價最終會如何。

Let's see what happens in 2025.

讓我們看看 2025 年會發生什麼。

We'll go one quarter at a time.

我們將一次走四分之一。

And in the first half of 2025, you've seen the investments we make in OpEx.

在 2025 年上半年，您已經看到了我們在 OpEx 方面的投資。

So we should see a return on those investments as we get into the second half.

因此，當進入下半年時，我們應該會看到這些投資的回報。

So net-net, appropriate guidance.

所以，淨網，適當的指導。

And again, we see more drivers to get us to the upper range than the lower range of that guidance.

而且，我們再次看到，推動我們達到指導上限的驅動因素比推動我們達到指導下限的驅動因素更多。

So extremely confident in the range provided, and we look forward to updating you every quarter and hopefully exceed those expectations.

我們對所提供的範圍非常有信心，我們期待每季向您更新，並希望超越這些預期。

Patrick Wood, Morgan Stanley.

摩根士丹利的派崔克‧伍德 (Patrick Wood)。

Congrats on Paragon 28.

恭喜您獲得 Paragon 28。

Basically on that side of things.

基本上就是那樣的事情。

And my question is, how are you thinking, A, about the opportunity to push it through your distribution sales network, both in the US and OUS and drive it on the top line that side?

我的問題是，A，您如何看待透過您在美國和澳洲的分銷銷售網絡來推廣這款產品，並推動其在當地實現營收成長的機會？

And B, how are you thinking about managing any potential disruption as you integrate it?

並且 B，您在整合過程中如何考慮管理任何潛在的干擾？

Thank you, Patrick.

謝謝你，派崔克。

First things first, we're very excited about this acquisition.

首先，我們對此次收購感到非常興奮。

I spent last week in Orlando with the sales team.

上週我和銷售團隊一起在奧蘭多度過了一週。

The culture in the company is second to none.

公司的文化是首屈一指的。

The innovation that they have, I've not seen anything like that in my 31 years in MedTech.

他們所擁有的創新是我在醫療科技領域 31 年從業以來從未見過的。

They have 50 active projects in the space.

他們在該領域有 50 個活躍項目。

Upon closing the transaction, we're going to be a leader in six of the key categories in the space, and they have an outstanding channel, which we don't.

交易完成後，我們將成為該領域六個關鍵類別的領導者，而且他們擁有出色的管道，而我們沒有。

So our thinking is that we are going to preserve that channel, fully dedicated to foot and ankle.

因此我們的想法是，我們將保留該通道，專門用於足部和腳踝。

We are bringing the management team over to Zimmer Biomet, starting with the CEO, Albert DaCosta, so we see minimal disruption when it comes to commercial execution and the channel in itself.

我們將把管理團隊帶到 Zimmer Biomet，首先是執行長 Albert DaCosta，因此我們在商業執行和通路本身方面受到的干擾最小。

We're preserving innovation.

我們正在保留創新。

It's a separate design center that is going to continue to fuel innovation to the space.

這是一個獨立的設計中心，將繼續為該領域提供創新動力。

So the two key drivers that are enabling the growth that they have seen 18% CAGR over a period of time now. we don't see that going away.

推動成長的兩個關鍵驅動因素是，他們在一段時間內實現了 18% 的複合年增長率。我們認為這種情況不會消失。

In terms of the second part, disruption, the fact that we're going to run this in isolation, we see minimal disruption.

就第二部分，中斷而言，事實上我們將單獨運行它，我們看到的中斷最小。

Obviously, we pay attention to the usual suspects.

顯然，我們會關注那些常見的嫌疑犯。

Do we have the right quality management systems, we do one other things we need to do from an operational standpoint around inventory.

我們是否擁有正確的品質管理體系，從營運的角度來看，我們還需要在庫存方面做另一件事。

But again, as we sit here today, we're feeling very, very excited and very confident that we can integrate this with minimal disruption.

但是，今天當我們坐在這裡時，我們感到非常非常興奮並且非常有信心我們能夠以最小的干擾將其整合在一起。

Steve Lichtman, Oppenheimer & Company.

奧本海默公司的史蒂夫·利希特曼。

Suky, you provided some color on first half versus second half of this year, but I was wondering if you could talk about guidance, cadenc a bit more for the year, excluding Paragon.

Suky，你提供了今年上半年和下半年的一些情況，但我想知道你是否可以再多談一下今年的指導意見，不包括 Paragon。

How should we think about sales growth and margin progression during 2025?

我們該如何看待2025年的銷售成長和利潤成長？

Yeah, absolutely.

是的，絕對是如此。

Thanks for the question, Steven.

謝謝你的提問，史蒂文。

As Ivan mentioned in his opening remarks and the first Q&A, there are a number of moving parts that are going to impact the cadence.

正如 Ivan 在開場白和第一次問答中提到的那樣，有許多活動部件都會影響節奏。

So it's a great question.

這是一個很好的問題。

We try to provide some color.

我們嘗試提供一些色彩。

I'll give it a little bit more here.

我在這裡再多講一點。

But let me start with some of those moving parts around selling day impact, the FX headwind that we talked about in our prepared remarks, new product uptake, which we're very excited about.

但是，讓我先從銷售日影響的一些變動因素開始，我們在準備好的發言中談到的外匯逆風，以及新產品的吸收，我們對此感到非常興奮。

Some of the investments that Ivan referenced that we believe is going to drive growth, not only later in this year but beyond this year.

我們相信，伊万提到的一些投資將推動成長，不僅在今年晚些時候，而且在今年以後。

And then our continued efficiency profile and push for efficiency and margin expansion.

然後我們繼續提高效率並推動提高效率和利潤率。

If we start with revenue, we would -- again, 3% to 5% ex FX is the guidance range.

如果我們從收入開始，我們會 — — 再次強調，3% 到 5% 的不含外匯收入是指導範圍。

There is a pretty steep FX headwind, which then takes our reported guidance to 1% to 3.5% on a reported basis.

外匯逆風相當嚴重，導致我們報告的預期成長率達到 1% 至 3.5%。

Inside of that, we project that Q1 will have the lowest ex FX growth, excuse me, of about 2% and and that's primarily due to the selling day headwind that we referenced earlier in our remarks.

其中，我們預計第一季的除外匯成長將最低，約為 2%，這主要是由於我們之前在評論中提到的賣出日逆風。

That's worth about 100 to 150 basis points.

這大約相當於 100 到 150 個基點。

The second quarter growth, which has the toughest comp when compared to last year, will be aligned to Q1 once you adjust for that day rate headwind, okay?

與去年相比，第二季的成長最為艱難，但一旦調整日利率逆風，其成長將與第一季保持一致，好嗎？

And then in the second half of growth, we expect that to be faster than the first half, really because you don't have that selling day headwind you're going to see much greater ramp-up of new products that Ivan referenced earlier.

然後，我們預計下半年的成長速度將比上半年更快，因為沒有銷售日逆風，你會看到伊凡之前提到的新產品的更大成長。

And then you've got the easier comp related to the ERP, which really impacted us in the second half of 2024.

然後，您將獲得與 ERP 相關的更簡單的補償，這對我們在 2024 年下半年產生了真正的影響。

As we said, FX is going to play a pretty big factor.

正如我們所說，外匯將發揮相當大的作用。

And so we expect that to be a headwind.

因此我們預計這將是一個阻力。

It's roughly about the same in the first half versus the second half with the first quarter and the third quarter being the biggest impact, and that's around 200 basis points of headwind in each year.

上半年和下半年的情況大致相同，第一季和第三季的影響最大，每年的逆風都在 200 個基點左右。

So hopefully, that gives you a lot of color on the revenue cadence all the way from ex FX down to the foreign currency impact.

因此，希望這能讓您全面了解從外匯到外幣影響的收入節奏。

And then if you move on to margins, as we said in our prepared remarks, overall, we would expect gross margins to be in line with 2024 and operating margin to be up year-over-year in line with the guidance and the profile we provided on our LRP earlier.

然後，如果您轉到利潤率，正如我們在準備好的評論中所說，總體而言，我們預計毛利率將與 2024 年持平，營業利潤率將同比增長，符合我們之前在 LRP 上提供的指引和概況。

First half margins will be lower than the first half of 2024, primarily due to lower gross margin as expected and as we've talked about through '24 and higher OpEx related to the investments Ivan discussed.

上半年的利潤率將低於 2024 年上半年，主要是因為預期毛利率較低，並且正如我們在 24 年所討論的那樣，以及與 Ivan 討論的投資相關的營運支出增加。

Some of those investments are in specialization around S.E.T. We're increasing our critical mass around ASC and robotic commercialization efforts.

其中一些投資是針對 S.E.T 的專業化投資。我們正在加大 ASC 和機器人商業化努力的臨界規模。

We're ramping up DTC.

我們正在加大 DTC 力度。

All of these things believe we'll have a near as well as mid and long-term impact on revenue growth positive impact.

所有這些因素都相信會對短期、中期和長期的收入成長產生正面影響。

Q1 operating margins, we expect to be down about 250 basis points versus the first quarter of '24.

我們預計第一季營業利潤率將比 2024 年第一季下降約 250 個基點。

And Q2 will be down slightly when compared to 2Q '24.

與 2024 年第二季相比，第二季將略有下降。

However, second half margins will be better than the second half of '24 as well as the first half of '25 due to better revenue profile, higher gross margins in tandem with year-on-year efficiency gains.

不過，由於收入狀況較好、毛利率更高、效率年增，下半年的利潤率將好於24年下半年和25年上半年。

So overall, we're confident in the guidance we're providing as a Ivan said.

因此總的來說，正如 Ivan 所說，我們對我們提供的指導充滿信心。

We think there are levers to potentially do better than that.

我們認為有一些手段可以做得更好。

We're also very excited to bring in the Paragon asset into our portfolio.

我們也非常高興將 Paragon 資產納入我們的投資組合。

And again, we feel really good about where we're headed in '25.

我們對於25年的發展方向感到非常滿意。

Matt Taylor, Jefferies.

傑富瑞的馬特泰勒 (Matt Taylor)。

I did want to follow up on Paragon and maybe ask you about the way the deal is structured with the CVR earnout.

我確實想跟進 Paragon 的情況，也許想問一下您有關該交易與 CVR 盈利結構的方式。

It implies that you could grow that business about 16% to 19% and above consensus.

這意味著你可以將該業務成長約 16% 至 19%，甚至高於普遍預期。

So I would love your comments on how you think you might be able to actually accelerate growth or at least beat what the Street was thinking with Paragon?

所以我很想聽聽你的評論，你認為你如何真正加速成長，或至少超越華爾街對 Paragon 的期望？

And also maybe talk about your ability to do additional deals as you digest this one.

當你消化這筆交易時，也許還可以談談你做其他交​​易的能力。

Yeah.

是的。

So maybe I'll start with the growth portion.

因此我或許應該從成長部分開始。

So the revenue synergies that we embedded in the model are appropriate.

因此我們在模型中嵌入的收入協同效應是合適的。

Beyond what we have in the model, we're thinking there is additional synergies.

除了模型中所擁有的之外，我們認為還有其他協同效應。

First and foremost, Paragon 28 is not a company that today is present or to present in the ASC space.

首先，Paragon 28 不是一家目前存在於或將存在於 ASC 領域的公司。

So there are a variety of opportunities there to do cross-selling, extend contracting.

因此，存在各種各樣的機會來進行交叉銷售和延長合約。

So that's definitely a growth lever.

所以這絕對是一個成長槓桿。

There are opportunities from our trauma and biologics business to put those products in the back of the dedicated channel that Paragon 20 has.

我們的創傷和生物製劑業務有機會將這些產品放在 Paragon 20 的專用管道中。

So it's a great opportunity there.

所以這是一個很好的機會。

And then there are other opportunities internationally.

此外，國際上還存在其他機會。

So they have 20% to 30% of the revenue coming outside of the US.

因此他們有 20% 到 30% 的收入來自美國以外。

We have a large infrastructure asset of the US.

我們擁有美國大量的基礎設施資產。

So again, those are some of the revenue synergies that can get us above the committed growth rate.

所以，這些都是可以讓我們超過承諾的成長率的一些收入綜效。

In terms of your second question around doing the the fire power is there.

關於你的第二個問題，關於火力是否存在。

What we want to do right now is to integrate Paragon 28 into the company, prove to everyone that we can do this type of deal with minimal disruption, and then we'll think about the next year when you start to think about the next year.

我們現在想要做的是將 Paragon 28 整合到公司中，向所有人證明我們可以以最小的干擾完成這類交易，然後當您開始考慮明年時，我們才會考慮明年。

David Roman, Goldman Sachs.

高盛的大衛‧羅曼（David Roman）。

I want just to spend a couple second on margins.

我只想在利潤上花幾秒鐘的時間。

Suky, at the analyst meeting, you had introduced a trend that expected two years of gross margin headwinds.

Suky，在分析師會議上，你介紹了預計兩年內毛利率將出現逆風的趨勢。

And I think a big piece of that had to do with the then currency dynamics at play, which have obviously evolved significantly over the past 7 or 8 months.

我認為這很大程度上與當時的貨幣動態有關，貨幣動態在過去 7 或 8 個月中顯然發生了重大變化。

So can you maybe Firstly, update us on how the trajectory of gross margins are trending relative to those expectations?

那麼，您能否先向我們介紹毛利率走勢相對於這些預期如何？

And then secondly, what is the path to turning gross margins around on a reported basis considering where we are today on FX and then some of the other operational matters that you've been undertaking to improve gross margin like inventory turns, et cetera?

其次，考慮到我們目前的外匯狀況，以及您為提高毛利率所採取的一些其他營運措施（如庫存週轉率等），在報告的基礎上扭轉毛利率的途徑是什麼？

Yeah.

是的。

Yeah.

是的。

Thanks for the question, David.

謝謝你的提問，大衛。

So first of all, overall, the headwinds, tailwinds as we think about 2025, just stepping back, I talked about gross margins being in line with 2024.

因此，首先，總體而言，當我們考慮 2025 年的不利因素和有利因素時，回顧一下，我談到了毛利率與 2024 年持平。

Some of the headwinds that we would expect to see is you have normal inflation every year.

我們預計會看到的一些阻力是每年都會出現正常的通貨膨脹。

Fortunately, that inflation rate has stabilized to sort of pre-pandemic norms.

幸運的是，通貨膨脹率已穩定在疫情前的水準。

So that's good to see.

我很高興看到這一點。

We're continuing to lap in some of capitalized cost increases at the end of '23 and beginning of 2024, which will impact the P&L, especially in the first half of 2025.

我們將繼續在 2023 年底和 2024 年初彌補部分資本化成本的增加，這將影響損益表，尤其是在 2025 年上半年。

And we're forecasting that pricing could be a modest headwind to gross margin.

我們預測定價可能會對毛利率產生一定阻力。

Still well better than our historical norms on pricing.

仍然比我們的歷史定價標準好得多。

I said somewhere around flat to maybe 50 basis points of erosion coming off a year where we're positive.

我說的是，在我們樂觀的一年裡，大約會持平到可能侵蝕 50 個基點。

So we'll see where we end up.

所以我們將會看到最終的結果。

But overall, a more positive trend, but still a modest potential headwind.

但總體而言，趨勢更為積極，但仍存在適度的潛在阻力。

So those are sort of were 3 big headwinds on gross margin.

所以這些算是影響毛利率的三大阻力。

And when you think about the tailwinds, it really -- and sorry, FX, as you noted, is another headwind inside of that, which we've talked about at length over the last year or so.

當你考慮順風時，它真的——抱歉，正如你所說，FX 是其中的另一個逆風，我們在過去一年左右的時間裡已經詳細討論過這個問題。

The tailwinds are really around our efficiency gains, we continue to make drastic improvement in repositioning our footprint into lower-cost markets as well as better utilization of our plant footprint, which gives you more better absorption.

順風實際上圍繞著我們的效率提升，我們繼續大幅改進，將我們的足跡重新定位到低成本市場，並更好地利用我們的工廠足跡，從而為您提供更好的吸收。

We're improving our mix through new products but also from a geographic perspective.

我們正在透過新產品以及從地理角度改進我們的產品組合。

And lastly, we're seeing lower E&O, excess and obsolescence as we continue to improve our inventory positions, and we made good -- really good progress in 2024 on reducing overall inventory.

最後，隨著我們不斷改善庫存狀況，我們看到 E&O、過剩和過時庫存減少，我們在 2024 年在減少整體庫存方面取得了良好的進展。

So those are the puts and takes, again, which broadly keep us in line with where 2024 margins were.

因此，這些都是投入和產出，它們大體上使我們與 2024 年的利潤率保持一致。

As you think about the cadence for gross margins in this year, we would expect the first half of this year to be broadly in line with how we exited 2024.

當您考慮今年的毛利率節奏時，我們預計今年上半年的毛利率將與 2024 年的毛利率大致一致。

So you should think about our Q4 gross margin into the first half of 2025.

因此，您應該考慮 2025 年上半年的第四季毛利率。

And then you should see a sequential step-up into Q3 and to Q4 with the largest benefit in Q4, really coming off of those efficiency gains that I spoke to earlier as well as the excess and obsolescence gains.

然後，您應該會看到第三季和第四季的連續上升，其中第四季度的收益最大，這實際上來自於我之前提到的效率提升以及過剩和過時收益。

Now with the FX changes we've seen, right, the strengthening of the dollar, that will or should give rise to additional FX hedge gain benefit.

現在，我們已經看到了外匯的變化，美元的走強，這將或應該帶來額外的外匯對沖收益。

Those benefits, however, will likely get capitalized in 2025, assuming rates stay where they are today.

不過，假設利率維持在今天的水平，這些收益很可能會在 2025 年資本化。

It's a dynamic environment.

這是一個動態的環境。

And if that happens, those would then materialize into our P&L into '26.

如果發生這種情況，這些將會反映在我們26年的損益表中。

So a lot of moving parts there.

那裡有很多活動部件。

I think the key takeaway is we continue to make fundamental improvements in gross margin, again, keeping it flat to despite those FX hedge gain headwinds that I talked about earlier in '24, and we do see an opportunity to maintain that stable environment or potentially improving over time.

我認為關鍵的一點是，我們繼續在毛利率方面做出根本性的改善，儘管我在 24 年早些時候談到了外匯對沖收益的阻力，但我們仍保持毛利率平穩，我們確實看到了維持穩定環境或隨著時間的推移可能改善的機會。

And inside of all that, we still have a profile where we're looking to expand operating margins this year.

除此之外，我們仍然希望今年能擴大營業利益率。

And again, that's we're coming off a track record of four consistent years of expanding operating margins.

再次，我們已連續四年維持營業利潤率不斷擴大的記錄。

So hopefully, a lot of color there gives you what you need there, David.

所以希望那裡的色彩能帶給你你需要的東西，大衛。

Larry Biegelsen, Wells Fargo.

富國銀行的拉里·比格爾森。

This is (inaudible) question for us on tariffs on Mexico and Canada.

這是（聽不清楚）關於墨西哥和加拿大關稅的問題。

Can you provide some color on how much of your manufacturing is coming from either of those two countries?

您能否透露一下你們的製造產品中有多少是來自這兩個國家？

And how much flexibility you have to move production elsewhere?

將生產轉移到其他地方的彈性有多大？

And also to take -- either qualitative or quantitative.

也可以採取－定性或定量的方式。

Yeah, simple answer.

是的，答案很簡單。

We do no manufacturing in Mexico.

我們不從事墨西哥的製造業。

We do no manufacturer in Canada, two thirds of our manufacturing is in the US.

我們在加拿大沒有製造商，三分之二的製造業在美國。

So we are evaluating what happens in China, the single-digit volumes coming out of there, manufacturing-wise.

因此，我們正在評估中國的情況，從製造角度來看，那裡的產量只有個位數。

But at present time, all the scenario planning that we've done is embedded in the guidance provided.

但目前，我們所做的所有情境規劃都已嵌入所提供的指導中。

I think that's the key takeaway.

我認為這就是關鍵點。

While we don't do manufacturing in Mexico, we do have some third-party supply that comes out of Mexico.

雖然我們不在墨西哥進行生產，但我們確實有一些來自墨西哥的第三方供應。

But as Ivan said, the impact has contemplated on recent announcements is embedded in our guidance range.

但正如伊凡所說，最近公告所考慮的影響已包含在我們的指導範圍內。

Ryan Zimmerman, BTIG.

瑞安·齊默爾曼（Ryan Zimmerman），BTIG。

Extremities grew 22%.

四肢增長了22%。

It was a phenomenal number.

這是一個驚人的數字。

Can you just talk about it, Ivan, in terms of what's driving that, how durable you see that?

伊万，您能否談談這現象的推動因素以及您認為這現象的持久性？

And we appreciate the color you're giving inside of S.E.T. and just should we expect similar levels as we move into '25.

我們很欣賞您為 S.E.T. 所賦予的色彩。當我們進入'25年時，我們是否也應該期待類似的水平。

Yeah.

是的。

Just a small correction, sports grew 22% in the quarter and the overall S.E.T. (multiple speakers) Yeah.

只需稍加調整，本季體育收入增長了 22%，整體 S.E.T. （多位發言者）是的。

Yeah, sports 22%, S.E.T., as a whole in the quarter, grew 8.4%, extremity upper single digit.

是的，體育佔 22%，S.E.T. 作為一個整體，本季成長了 8.4%，極高的個位數。

This is now 4, 5 quarters in a row, we're growing mid- to upper single digit, mostly upper single digit, and we see this as durable.

我們已連續 4、5 個季度保持中等至上個位數的成長，大部分時候都是上個位數，而且我們認為這種成長是持久的。

What's happening here, first of all, we did add a lot of products.

這裡發生的事情是，首先，我們確實添加了很多產品。

So from an organic and inorganic standpoint, I'll tell you, the sales back today is totally different than it used to be.

所以從有機和無機的角度來看，我會告訴你，今天的銷售與以前完全不同。

In addition to the products, we added a ton of people, and we're going to continue to add more specialized people that some of the OpEx investments you've seen in the first half of 2025.

除了產品之外，我們還增加了大量員工，我們將繼續增加更多專業人才，就像您在 2025 年上半年看到的一些 OpEx 投資一樣。

We have dedicated resources to the ASC space that we didn't have before.

我們為 ASC 領域投入了以前沒有的專用資源。

So it's just a different business altogether.

所以這是完全不同的業務。

Upon closing, as you heard in the prepared remarks, upon closing of the Paragon 28 deal or the S.E.T. business now is going to be as large, if not larger, actually, than our heat business growing 2, 3, potentially 4 times the rate.

正如您在準備好的演講中所聽到的，在 Paragon 28 交易或 S.E.T. 結束時。實際上，現在的業務規模將會和我們的熱力業務一樣大，甚至更大，成長率將是其 2 倍、3 倍，甚至 4 倍。

So again, really excited about that set, and we do see this business as a durable business growing at least mid-single digit, likely upper single digit.

所以，我們再次對這一組數據感到非常興奮，我們確實將這項業務視為一項持久的業務，至少會以中等個位數成長，很可能是高個位數成長。

Danielle Antalffy, UBS.

瑞銀的丹妮爾‧安塔菲 (Danielle Antalffy)。

Ivan and Suky, I wanted to start a little bit more into the ASC opportunity because I think that's a potentially meaningful growth driver as Zimmer focuses their efforts on Paragon for that.

Ivan 和 Suky，我想更多地了解 ASC 的機會，因為我認為這是一個潛在的有意義的成長動力，因為 Zimmer 將他們的精力集中在 Paragon 上。

So I wanted to see if you could maybe give us an update on percent of revenue today or maybe procedure volumes that's going through the ASC, and how now with Paragon is the product portfolio that can help you win in the ASC?

所以我想看看您是否可以向我們介紹一下今天的收入百分比或透過 ASC 的程序量，以及現在 Paragon 的產品組合如何幫助您在 ASC 中獲勝？

Thank you, Daniel.

謝謝你，丹尼爾。

It's a huge opportunity.

這是一個巨大的機會。

So back in 2019, roughly 2% or 3% of sales here in the U.S. came from the ASC environment.

因此，回到 2019 年，美國約 2% 或 3% 的銷售額來自 ASC 環境。

Today, the number is quickly approaching 20%.

如今，這一數字正迅速接近20%。

We remain the number one company in Hips and is in the ASC space.

我們仍然是 Hips 和 ASC 領域排名第一的公司。

And with the addition of the sports portfolio now foot and ankle portfolio and other categories we think we can elevate the growth profile in the ASC space.

隨著運動產品組合、足部和踝部產品組合以及其他類別的加入，我們認為我們可以提升 ASC 領域的成長前景。

The things that we're doing, as I just mentioned, we have added people.

正如我剛才提到的，我們正在做的事情是增加人員。

We have added partnerships.

我們增加了合作關係。

CBRE comes to mind. (inaudible) already signed up a deal with CBRE in that space.

我想到的是世邦魏理仕 (CBRE)。 (聽不清楚)已經與 CBRE 在該領域簽署了協議。

We have active partnerships with

我們與以下機構建立了積極的合作關係

[stories].

[故事]。

We have active partnerships with

我們與以下機構建立了積極的合作關係

[Xahelra].

[夏赫拉]。

So it's not a single product gap that we have when it comes to contracting.

因此，在簽訂合約時，我們面臨的不僅僅是單一的產品差距。

And then lastly, products.

最後是產品。

We continue to innovate with the ASC in mind, what are products that make the surgery faster what are products that make the surgery more efficient, and what are products that deliver not just the clinical outcome but also an economic outcome, which is paramount in relative to Paragon 28, that's a revenue synergy that we didn't contemplate meaningfully in the model, but it is real. [Abdomen] procedures here in the U.S. have very favorable reimbursement.

我們將繼續以 ASC 為中心進行創新，哪些產品可以加快手術速度，哪些產品可以提高手術效率，哪些產品不僅能帶來臨床結果，還能帶來經濟結果，這對於 Paragon 28 而言至關重要，這是一種收入協同效應，我們在模型中沒有深入考慮過，但它是真實存在的。在美國，[腹部] 手術的報銷待遇非常優惠。

As I mentioned earlier, Paragon 28 has not been that present in the ASC.

正如我之前提到的，Paragon 28 在 ASC 中並不常見。

We are very present, as you know, in the ASC.

如您所知，我們在 ASC 中佔有重要地位。

So we need that to be a very meaningful opportunity moving forward.

因此，我們需要將其作為一個非常有意義的前進機會。

So net-net, very excited about where we are.

所以，我們對目前的情況感到非常興奮。

And then relative to your question on the volumes, we deem that roughly 40% to 60% of all the cases in core orthopedics, are going to be moving to the ASC in the next three to five years.

關於您關於數量的問題，我們認為，未來三到五年內，核心骨科中大約 40% 到 60% 的病例將轉移到 ASC。

And again, it's not lost on me, that's a wide range, but that is the third-party research that we've done.

再說一次，我並沒有忘記，這是一個很大的範圍，但這是我們所做的第三方研究。

So it's meaningful.

所以這是有意義的。

Travis Steed, Bank of America.

美國銀行的特拉維斯·斯蒂德 (Travis Steed)。

I guess I just wanted to kind of push a little bit on the EPS growth and the guidance.

我想我只是想稍微推動一下每股收益成長和指導。

Like I know you said you still get some margin expansion this year.

就像我所知道的，您說過今年您的利潤率仍會有所擴大。

I want to make sure.

我想確認一下。

Just like why was the EPS guide kind of where it was?

就像為什麼 EPS 指南會位於此處一樣？

Why can't you do like a buyback or something to get -- to offset some of the headwinds this year just to give investors a little bit more EPS growth.

為什麼不能採取回購之類的措施來抵消今年的一些不利因素，從而為投資者帶來更多的每股盈餘成長？

And when you think about the revenue ramp over the second half, what's going to give you the confidence kind of in the second half revenue ramp here over the course of the year.

當您考慮下半年的營收成長時，什麼會讓您對今年下半年的營收成長充滿信心呢？

Yeah.

是的。

Why don't I take the EPS question and I'll let Ivan talk about the revenue ramp in the second half.

我為什麼不回答每股盈餘問題，而是讓伊凡來談談下半年的營收成長。

The biggest part of the EPS guide and not having as much growth in the bottom line is really around the FX impact, which I think I talked about in my prepared remarks of being sense, which is not insignificant.

EPS 指南中最重要的部分以及底線沒有太大增長實際上是圍繞外匯的影響，我想我在準備好的發言中已經談到了這一點，這並不是微不足道的。

We are going to expand margins this year.

我們今年要擴大利潤率。

We contemplated potentially driving more, but then in the backdrop of investments we think are critical to drive the business and the growth, not only this year but beyond.

我們考慮過可能採取更多措施，但在投資背景下，我們認為投資對於推動業務和成長至關重要，不僅是今年，而且是以後。

We think that the profile still hits our overall LRP metrics of expanding operating margin. and driving the reported earnings per share leverage.

我們認為，該概況仍符合我們擴大營業利潤率的整體 LRP 指標。並推動報告的每股盈餘槓桿。

So that's really where we are on the earnings per share side.

這就是我們每股收益的實際情況。

.

。

On operating margin, again, we feel very comfortable in our ability to drive that operating margin expansion this year, especially based on my earlier comments, maintaining stabilized gross margin and continue to find efficiencies through through SG&A.

關於營業利潤率，我們再次對今年推動營業利潤率擴張的能力感到非常有信心，尤其是基於我先前的評論，保持穩定的毛利率，並繼續透過銷售、一般及行政費用 (SG&A) 提高效率。

On your question around share buybacks, our current assumption is that we don't have any share buybacks.

關於您提出的股票回購問題，我們目前的假設是我們沒有任何股票回購。

We assume right now in the modeling in my prepared remarks that overall share count remained flat.

我現在在準備好的評論中的模型中假設總體股票數量保持不變。

The good thing is coming out of the Paragon 28 transaction, we're going to have a very strong balance sheet, which is going to leave us optionality to continue to pursue our capital allocation strategies, as I laid out back at our LRP, which is a balance of M&A and return of capital to shareholders.

好消息是，Paragon 28 交易完成後，我們的資產負債表將非常強勁，這將使我們可以選擇繼續推行資本配置策略，就像我在 LRP 中提到的那樣，即併購和股東資本回報之間的平衡。

In 2024, I think we returned over $850 million, so we're well on that pathway of at least 65% back to shareholders.

到 2024 年，我認為我們的回報將超過 8.5 億美元，因此我們有望實現至少 65% 的股東回報。

And we're going to continue to evaluate that and be opportunistic based on market conditions and free cash flow, which is very strong for this year and going forward.

我們將繼續對此進行評估，並根據市場狀況和自由現金流尋找機會，這對於今年和未來的發展都非常強勁。

Second part of the question on the revenue acceleration on the second half, lots of things that I can dance around, but maybe I'll frame answer in four bullet points.

問題的第二部分是關於下半年收入加速成長，有很多事情我可以繞圈子，但也許我會用四個要點來回答。

First, pretty obvious.

首先，很明顯。

The second semester of 2025, the second half is going to benefit from the comps versus the ERP challenge that we had recall that we took a period of 60 to 80 basis points due to the ERP.

2025 年第二學期，即下半年將受益於可比較公司業績而非 ERP 挑戰，我們記得，由於 ERP，我們花費了 60 到 80 個基點的時間。

So we have a comp benefit in the second half.

因此我們下半年有補償福利。

The second piece is new product introductions.

第二部分是新產品介紹。

As you probably have heard and as you have seen, all of these new products that we're talking about got their approval with the CE mark in the case of personal revision or 510-K approval late in 2024.

正如您可能聽到和看到的，我們所談論的所有這些新產品均在 2024 年末的個人修訂或 510-K 批准的情況下獲得了 CE 標誌批准。

So the first half is about training.

因此前半部是關於訓練的。

It's about getting the sets together.

這是為了將各個集合放在一起。

It's about doing all the things we need to do.

這是關於做我們需要做的所有事情。

And you really do see the ramp-up of most of these new products in the second half of 2025.

你確實會看到大多數新產品的銷售量在 2025 年下半年上升。

The third one is the return on the OpEx investment that we're making in the first half of 2025.

第三個是我們在 2025 年上半年的營運支出投資報酬率。

Whether it's sizable investments in direct-to-patient activities, whether it's the training associated with all these new product launches, both internal and external trainings, whether it's the marketing materials, there's a lot of investment in the first half of 2025 that pays back in the second half.

無論是對直接面向患者的活動的大量投資，還是與所有這些新產品發布相關的培訓（內部和外部培訓），無論是行銷資料，2025 年上半年的大量投資都將在下半年獲得回報。

And then lastly, the fourth bullet point is really timing of our international business.

最後，第四個要點其實是我們國際業務的時機。

We're going to see acceleration of international growth in the second half of 2021.

2021 年下半年，我們將看到國際成長加速。

So really excited about where we are in the year, especially as we get into the second half of the year.

我對今年的成績感到非常興奮，尤其是當我們進入下半年的時候。

Rick Wise, Stifel.

瑞克懷斯（Rick Wise），Stifel。

Ivan, just one of those four excellent points you made, is as to why we're going to see a stronger second half, revolves importantly around innovation.

伊万，你提出的四個非常好的觀點之一就是，為什麼我們將看到更強勁的下半年，重要的一點是圍繞創新。

And I was going back to your slides that you presented at JPMorgan, and you presented a slide on the pipeline and six major products launching.

我回顧了您在摩根大通展示的幻燈片，您展示了有關產品線和六種主要產品的推出。

And it seems clear these are big markets.

顯然這些都是龐大的市場。

These are areas where you haven't had the appropriate products or technology or in some cases, any technology.

在這些領域您還沒有適當的產品或技術，或者在某些情況下，沒有任何技術。

Each one of them seems like it carries a price premium, like 10%, 15% kind of price premium.

它們每一個似乎都帶有價格溢價，例如 10%、15% 的價格溢價。

Help us understand, I guess, two parts.

我想，請幫助我們理解兩個部分。

One, which of the products we should -- which of the products in the second half are going to be most impactful.

第一，我們應該推出哪些產品－下半年哪些產品將會產生最大的影響。

The Z1 triple paper stem hip seems like one to me, but which should we focus on.

Z1 三紙桿髖關節對我來說似乎是其中之一，但我們該關注哪一個呢？

And in providing guidance today, to what extent are you providing an optimistic view of what seemed like truly impactful product portfolio, launching on a broad front.

在今天提供指導時，您在多大程度上對看似真正有影響力的產品組合給出了樂觀的看法，並在廣泛領域推出。

Great question, great challenge.

好問題，好挑戰。

And no, I don't think today we're providing an optimistic view on the impact of these new products.

不，我認為今天我們對這些新產品的影響並沒有給予樂觀的看法。

Z1 is a meaningful opportunity.

Z1 是一個有意義的機會。

Recall, Rick, that we got the initial launch of this product in Q3 of '24.

回想一下，里克，我們在 2024 年第三季首次推出了該產品。

We get into full launch mode as we speak.

就在我們講話的同時，我們進入了全面啟動模式。

I would say C1 is going to be very meaningful in the second half of 2025.

我想說 C1 在 2025 年下半年將會非常有意義。

You should see us getting back to gaining share in U.S. hips, which is something we've not done for a while.

您應該會看到我們重新獲得美國臀部市場的份額，這是我們有一段時間沒有做過的事情了。

It's a $1.5 billion market.

這是一個價值15億美元的市場。

And we believe we have a differentiated offering.

我們相信我們提供的產品具有差異化。

So definitely pay attention to that one, which, by the way, income but with a surgical impact drives meaningful growth.

所以一定要注意這一點，順便說一句，收入但手術的影響會推動有意義的成長。

So I would say those 2 HAMMR (inaudible) are the main drivers of growth in the US, especially in the second half.

因此我想說這兩個 HAMMR（聽不清楚）是美國成長的主要動力，尤其是在下半年。

In is, Persona OsseoTi was launched in 2024, but we didn't get the S.E.T. -- its ingrediant until the second half.

事實上，Persona OsseoTi 於 2024 年推出，但我們沒有獲得 S.E.T。 —— 它的成分直到後半部。

We exited 2024 with cementless penetration in the US around 25%.

到 2024 年，美國無水泥滲透率將達到 25% 左右。

Every time that we go from cemented to cementless, we gained 15% ASP.

每當我們從水泥轉變為非水泥時，我們的平均售價就會增加 15%。

And as we enter 2025, I do think we're going to see an acceleration there.

當我們進入 2025 年時，我確實認為我們將會看到加速發展。

And if I were to just really highlight 1 product that is truly differentiated, would be Oxford Partial Cementles.

如果我只想強調一款真正與眾不同的產品，那就是 Oxford Partial Cementles。

In the U.S., we have lost over the last 3 or 5 years, 700 basis points or partial knee market share.

在美國，我們在過去 3 到 5 年裡損失了 700 個基點或部分膝關節市場。

I'll say that number again.

我再說一次這個數字。

So I think that's going to explain some of the trends you've seen.

所以我認為這可以解釋你所看到的一些趨勢。

We lost 700 basis points of partial knee market share.

我們失去了部分膝關節市場的700個基點的份額。

And with Oxford cementless, we believe we can get back to where we were.

有了牛津無骨水泥，我們相信我們就能回到原來的狀態。

It's a $1 billion market, growing upper single digit.

這是一個價值 10 億美元的市場，並以個位數成長。

We got approval for this product in late November 2024.

我們於 2024 年 11 月下旬獲得了該產品的批准。

It is the only PMA FDA-approved product in the US, which means that if you want to compete, you have to go through a PMA, it will be up to 10 years.

它是唯一一款美國FDA核准的PMA產品，也就是說如果你想要參賽就必須通過PMA，最長可達10年。

We got over 300,000 case done in Europe.

我們在歐洲完成了超過30萬起案件。

It has the best registry data of any person in the world, in the UK registry with 33,000 patients.

它擁有世界上最好的註冊數據，在英國註冊處擁有 33,000 名患者。

So I can go on and on, but this is truly a differentiated product.

我還可以繼續說下去，但這確實是一個差異化的產品。

And I think as we continue to train people, get the S.E.T. ready, for cementless is going to be a very meaningful product as we get into the second half of 2025.

我認為，隨著我們繼續培訓人員，獲得 S.E.T.做好準備，因為到 2025 年下半年，無水泥將成為非常有意義的產品。

So I know I said a lot, and it's always hard to pick your favorite channel, but it's a very compelling portfolio.

所以我知道我說了很多，而且選擇你最喜歡的頻道總是很難，但這是一個非常引人注目的投資組合。

Matt Miksic, Barclays.

巴克萊銀行的馬特‧米克西克 (Matt Miksic)。

So I had a couple of questions on the Paragon 28 acquisition, just one on the sales force and integration and what your thoughts on that look like given that it's one of these independent exclusive but independent field force organizations.

因此，我對 Paragon 28 收購有幾個問題，一個是關於銷售隊伍和整合的問題，鑑於它是獨立的獨家但獨立的現場部隊組織之一，您對此有何看法。

And the other one, the total ankle, I know it's not, obviously, the reason.

而另外一個，整個腳踝受傷，我知道這顯然不是原因。

The only reason you'd go after an asset like this, the way they're growing but every one of these small lower extremities acquisition seems to have involved somehow divesting in ankle.

你追求這種資產的唯一原因是它們的成長方式，但每個小下肢的收購似乎都涉及以某種方式剝離腳踝。

Just would love to get your thoughts on that.

只是想聽聽你對此的看法。

Thanks, Matt.

謝謝，馬特。

I'll take both of them.

我都要它們兩個。

So starting with the sales force, yeah, they are exclusive.

所以從銷售團隊開始，是的，他們是獨家的。

Yeah, they are

是的

[1099s].

[1099秒]。

We also have exclusive 1099 sales forces here at Jimeet or CMFT business is a 1099 sales force and it's exclusive.

我們在 Jimeet 或 CMFT 這裡也有獨家的 1099 銷售隊​​伍，業務是 1099 銷售隊​​伍，而且是獨家的。

So we know how to run these businesses.

所以我們知道如何經營這些業務。

As I mentioned earlier, I was in Orlando this last weekend at the sales meeting.

正如我之前提到的，上週末我去奧蘭多參加了銷售會議。

We've made a very strong commitment to bring that sales force over here.

我們已經做出了堅定的承諾，要把銷售團隊帶到這裡。

As long as we continue to fuel innovation, which we will, as long as we continue to take care of the sales force, which we will, I don't see any disruption in that regard.

只要我們繼續推動創新，只要我們繼續照顧銷售團隊，我就不會看到這方面有任何中斷。

As a reminder, we don't have a dedicated sales force in front akle here at Zimmer Biomet.

提醒一下，Zimmer Biomet 這裡沒有專門的前踝銷售人員。

So there is no disruption when it comes to duplicity, when it comes to selecting who's going to cover what territory.

因此，在選擇誰來負責哪個領域時，不會出現任何欺騙行為。

So I would say it's a very simple integration.

所以我想說這是一個非常簡單的整合。

On the portfolio, we didn't buy just total ankle with Paragon 28.

在產品組合中，我們並沒有隻購買帶有 Paragon 28 的整個腳踝。

We're getting a leadership position in forefoot, fracture fixation, flat foot, total ankle, of course, [chart growth] and biologics.

我們在前足、骨折固定、扁平足、全踝關節、當然還有（圖表增長）和生物製劑領域處於領先地位。

We don't see any reason today where there's going to be disruption in total ankle, given our market share in that space and what they have gone on.

考慮到我們在該領域的市場份額以及他們的發展情況，我們目前認為全踝關節市場不可能發生任何中斷。

So I would say this integration is as simple as it gets, and we look forward to closing the transaction.

所以我想說這種整合非常簡單，我們期待完成交易。

Jayson Bedford, Raymond James.

傑森貝德福德、雷蒙詹姆斯。

Just two quick questions.

只需兩個簡短的問題。

I think there was -- in the second half of '24.

我認為是在 2024 年下半年。

I think it was impacted by about $50 million because of the ERP issue.

我認為 ERP 問題造成了約 5000 萬美元的影響。

We assume that -- you're assuming this business is lost?

我們假設—您假設這項業務已經遺失了？

Or is there some sort of recoupment embedded in the '25 guide.

或 '25 指南中是否存在某種補償。

And then just quickly on the new product question.

然後快速討論一下新產品的問題。

When will you be in full

你什麼時候能滿

(technical difficulty)

（技術難度）

Can you repeat the second part of the question?

你能重複問題的第二部分嗎？

I got the ERP, but I didn't get the second part.

我拿到了ERP，但是沒有拿到第二部分。

Yeah.

是的。

Sorry, the second two questions, sorry.

抱歉，後兩個問題，抱歉。

When will you be in full launch mode with Oxford Cementless?

您什麼時候會全面推出 Oxford Cementless？

Okay.

好的。

So I'll start with the second one.

因此我將從第二個開始。

Second half of 2025, we have the S.E.T., we have the training done.

2025 年下半年，我們將擁有 S.E.T，並完成訓練。

So that's full launch mode for products or cementless.

這就是產品的完整發布模式或無水泥模式。

So being a PMA centric device, we have a policy of not train, no use.

因此，作為 PMA 中心設備，我們實行「不訓練，就沒有用」的政策。

And we're running extensive training throughout the first half of 2025.

我們將在 2025 年上半年進行大量培訓。

So second half is when you are already in full launch mode.

因此，下半場是您已經處於全面啟動模式的時候。

In terms of the ERP, a lot of moving parts.

就 ERP 而言，有許多活動部件。

They will lose some business in areas like surgical, in components of sports medicine, yeah, we did lose some business given the ERP.

他們將在外科手術、運動醫學組件等領域失去一些業務，是的，我們確實因為 ERP 而失去了一些業務。

In other areas like Recon, knees and hips, there might have been some delays.

在其他部位，例如偵察、膝蓋和臀部，可能會出現一些延遲。

Certainly, we had an impact on new product introductions in the second half and now have moved towards first, second half of 2025.

當然，我們對下半年的新產品推出產生了影響，現在已經邁向 2025 年上半年和下半年。

There's a lot of moving parts and it's hard to quantify.

有很多活動部件，很難量化。

That will conclude our question-and-answer session.

我們的問答環節到此結束。

At this time, I'd like to turn the call back over to Ivan for any additional or closing remarks.

現在，我想將電話轉回 Ivan，讓他做任何補充或結束語。

Yeah.

是的。

I started with gratitude this morning.

今天早上我懷著感激之心開始新的一天。

I want to close with gratitude to the sales force and to the employees of Zimmer Biomet.

最後，我要向 Zimmer Biomet 的銷售團隊和員工表示感謝。

As we sit here today, it's a totally different company across three vectors: strategy, financial results and culture.

今天我們在這裡，從策略、財務表現和文化三個方面來看，這都是一家完全不同的公司。

Strategically, we've moved from a Vanguard profile in the 3 range to 4.5 by the time we divested spine and dental and now added -- or about to add Paragon 28 into the portfolio.

從戰略上講，當我們剝離脊椎和牙科業務並添加（或即將添加）Paragon 28到投資組合中時，我們的先鋒配置已經從3範圍上升到4.5。

Excited about where we are with Paragon 28.

我們對 Paragon 28 的進展感到非常興奮。

That's a $5 billion market, growing 7% to 8%.

這是一個價值 50 億美元的市場，成長率為 7% 至 8%。

And we got no gaps in our recon portfolio.

我們的偵察組合沒有任何漏洞。

That's now where we were 3, 5 years ago.

這正是我們三、五年前的狀況。

So a total different company from a strategic standpoint.

從策略角度來看，這是一家完全不同的公司。

Financially, I've seen -- you got the data points to the prepared remarks and the Q&A.

從財務角度來看，我已經看到——您已獲得準備好的評論和問答環節的數據點。

At the end of 2025, assuming we deliver on this guidance, it will be five years of mid-single-digit or above revenue growth, five years of operating margin expansion.

假設我們實現這一預期，到 2025 年底，我們的收入將實現五年中等個位數或以上的成長，營業利潤率也將實現五年的擴大。

We have broader leverage ratio to the low shoes, and we are driving free cash flow conversion at a different pace than we used to.

我們的槓桿率低於平均水平，而且我們正在以不同於以往的速度推動自由現金流轉換。

And then culture wise, we continue to have high engagement, dedicated, motivated organization, and we look forward to updating you on our Q1 results in early May.

從文化角度來看，我們繼續擁有高度參與、專注、積極主動的組織，我們期待在 5 月初向您通報我們的第一季業績。

Thank you for your time.

感謝您的時間。

Thank you, again, for participating in today's conference call.

再次感謝您參加今天的電話會議。

You may now disconnect.

您現在可以斷開連線。