Zimmer Biomet Holdings Inc (ZBH) 2022 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Zimmer Biomet First Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded today, May 3, 2022. (Operator Instructions).

女士們先生們，早上好，歡迎參加 Zimmer Biomet 2022 年第一季度收益電話會議。 （操作員說明）提醒一下，本次會議將於今天 2022 年 5 月 3 日錄製。（操作員說明）。

I would now like to turn the conference over to Keri Mattox, Senior Vice President, Investor Relations and Chief Communications Officer. Please go ahead.

我現在想將會議轉交給投資者關係高級副總裁兼首席傳播官 Keri Mattox。請繼續。

Thank you, operator, and good morning, everyone. I hope you are all well and safe. Welcome to Zimmer Biomet's First Quarter 2022 Earnings Conference Call. Joining me today are Bryan Hanson, our Chairman, President and CEO; EVP and CFO, Suky Upadhyay; and COO, Ivan Tornos.

謝謝接線員，大家早上好。我希望你們一切安好。歡迎來到 Zimmer Biomet 的 2022 年第一季度收益電話會議。今天加入我的是我們的董事長、總裁兼首席執行官 Bryan Hanson；執行副總裁兼首席財務官 Suky Upadhyay；首席運營官 Ivan Tornos。

Before we get started, I'd like to remind you that our comments during this call will include forward-looking statements. Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties. Please note, we assume no obligation to update these forward-looking statements even if actual results or future expectations change materially. Please refer to our SEC filings for a detailed discussion of these risks and uncertainties 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發表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表明的結果存在重大差異。請注意，即使實際結果或未來預期發生重大變化，我們也沒有義務更新這些前瞻性陳述。請參閱我們向美國證券交易委員會提交的文件，以詳細討論這些風險和不確定性以及此類前瞻性陳述的固有局限性。

Additionally, the discussions on this call will include certain non-GAAP financial measures. Reconciliation of these measures to the most directly comparable GAAP financial measures is included within our Q1 earnings release, which can be found on our website, zimmerbiomet.com.

此外，本次電話會議的討論將包括某些非 GAAP 財務指標。這些措施與最直接可比的 GAAP 財務措施的對賬包含在我們的第一季度收益發布中，可以在我們的網站 zimmerbiomet.com 上找到。

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

有了這個，我會把電話轉給布萊恩。布萊恩？

All right. Thanks, Keri, and thanks to all of you for joining us this morning. I'm going to talk briefly about our Q1 performance and our revised expectations for the full year. I'm also going to spend a few minutes talking about our recent innovation and our key drivers for long-term growth, and then after that, I'm going to turn it over to Suky, who will get into more details on the quarter, but also very importantly, our full year guidance update. And then we'll close out the call with your questions, of course.

好的。謝謝 Keri，也感謝大家今天早上加入我們。我將簡要談談我們第一季度的表現和我們對全年的修訂預期。我還將花幾分鐘時間談談我們最近的創新和我們長期增長的主要驅動因素，然後，我將把它交給 Suky，他將介紹本季度的更多細節，但也非常重要的是，我們的全年指導更新。當然，我們會以您的問題結束通話。

So let's get started with Q1, and we have a strong quarter, well above our own expectations and obviously, above external expectations. And the primary reason for that level of overachievement was stronger-than-anticipated COVID recovery in the quarter, particularly when we looked at the back half of the quarter. And if I look at the U.S. recovery, it was stronger and faster than I think anyone expected, pretty much across the board.

因此，讓我們從第一季度開始，我們有一個強勁的季度，遠高於我們自己的預期，顯然也高於外部預期。這種超額完成度的主要原因是本季度的 COVID 復甦強於預期，尤其是當我們查看本季度的後半部分時。如果我看一下美國的複蘇，它比我認為的任何人預期的都要強勁和快速，幾乎是全面的。

And while we continue to see COVID surges in EMEA and China, the impact on overall procedure cancellations has been minimal at least so far. And inside of that, we saw a very strong performance in large joints and in particular, our knee franchise, while our set recovery lagged our core recon business at this point.

儘管我們繼續看到 EMEA 和中國的 COVID 激增，但至少到目前為止，對整個程序取消的影響微乎其微。在其中，我們看到大型關節的表現非常強勁，尤其是我們的膝蓋專營權，而我們的恢復在這一點上落後於我們的核心偵察業務。

We know it's still early in the year, but based on what we saw in the quarter and really, current trends into Q2, our confidence in 2022 growth has definitely increased. And as a result, we are raising and tightening our full year guidance.

我們知道現在還為時過早，但根據我們在本季度所看到的情況以及第二季度的當前趨勢，我們對 2022 年增長的信心肯定有所增強。因此，我們正在提高和收緊我們的全年指導。

Now, there are clearly a number of headwinds that we are facing, supply challenges, inflation, Russia, Ukraine, but given our revenue dependence on elective procedures, COVID recovery outweighs those headwinds. And that's why even in the face of these challenges, we're able to raise our outlook for the year.

現在，我們顯然面臨著許多不利因素，供應挑戰、通貨膨脹、俄羅斯、烏克蘭，但鑑於我們的收入依賴於選修程序，COVID 復甦超過了這些不利因素。這就是為什麼即使面對這些挑戰，我們也能夠提高我們對今年的展望。

Okay, so turning the page a bit. Outside of external influences on our business, our strategy is working, and our underlying business is very strong. Our new product pipeline continues to deliver. We're adding more innovation and value to our ZBEdge ecosystem. If you were at AAOS, you saw our recently launched WalkAI. This is ZB's first AI-based solution. We also showed recently launched functionality for mymobility platform. This is under the umbrella of our exclusive partnership with Apple. Our ROSA Robotics momentum continues to be very strong, and the early feedback on Persona iQ, even though it's in limited launch, is very positive. All of these things combined are highlighting the possibilities around data collection and integration on the patient experience.

好的，所以稍微翻一下頁。除了對我們業務的外部影響外，我們的戰略正在發揮作用，我們的基礎業務非常強大。我們的新產品線繼續交付。我們正在為我們的 ZBEdge 生態系統增加更多的創新和價值。如果您在 AAOS，就會看到我們最近推出的 WalkAI。這是ZB的第一個基於AI的解決方案。我們還展示了最近推出的 mymobility 平台功能。這是我們與 Apple 的獨家合作夥伴關係的保護傘。我們的 ROSA Robotics 發展勢頭仍然非常強勁，儘管 Persona iQ 的發佈時間有限，但其早期反饋非常積極。所有這些結合在一起，突出了圍繞患者體驗進行數據收集和整合的可能性。

We also continue to drive significant demand and traction with Persona Revision in our knee franchise, with Avenir Complete and our hip franchise and our Signature ONE Planner in shoulder. And our new product pipeline remains very strong, with additional product launches planned for 2022, especially across our knee and S.E.T. portfolios.

我們還繼續通過 Persona Revision 在我們的膝蓋系列、Avenir Complete 和我們的臀部系列以及我們的 Signature ONE Planner 在肩部系列中推動巨大的需求和牽引力。我們的新產品線仍然非常強大，計劃在 2022 年推出更多產品，尤其是我們的膝蓋和 S.E.T.投資組合。

We're also continuing to reshape our business and accelerate ZB's transformation. That means, of course, streamlining and modernizing our operating model, but also, focusing on making ZB a best and preferred place to work in a trusted partner. Now, just in Q1, we scored 100% on the Human Rights Campaign's Corporate Equality Index. We made Forbes' Best Large Employers list, and we were named one of the most innovative companies by Fast Company for our ROSA Robotics platform.

我們也在繼續重塑我們的業務，加速中幣的轉型。這當然意味著精簡和現代化我們的運營模式，但也意味著專注於使 ZB 成為值得信賴的合作夥伴中最佳和首選的工作場所。現在，就在第一季度，我們在人權運動的企業平等指數中獲得了 100% 的分數。我們登上了福布斯最佳大型雇主榜單，並因我們的 ROSA 機器人平台被 Fast Company 評為最具創新力的公司之一。

We have also prioritized our environmental, social and governance, or ESG commitments, and our actions in this area continue to expand. We have committed to key environmental standards, delivered on social giving pledges and set DE&I standards and long-term goals in this area. And we've enhanced our overall reporting of ESG progress internal to our own team members, but also, to investors.

我們還優先考慮了我們的環境、社會和治理或 ESG 承諾，並且我們在該領域的行動不斷擴大。我們致力於關鍵的環境標準，履行社會捐贈承諾，並在該領域制定 DE&I 標準和長期目標。我們加強了向我們自己的團隊成員以及投資者內部報告 ESG 進展的整體情況。

And finally, our transformation also includes, as you know, active portfolio management, and as a part of this, we completed our spinoff ZimVie on March 1. That was ahead of schedule and certainly is a part of our active portfolio management strategy.

最後，如您所知，我們的轉型還包括積極的投資組合管理，作為其中的一部分，我們在 3 月 1 日完成了分拆 ZimVie。這比計劃提前，當然是我們積極的投資組合管理戰略的一部分。

So in summary, even though there are real macro headwinds that we will have to manage, and I have confidence in our team to do so, the recovery -- the shift in recovery really in COVID is the bright spot we've been waiting for and we're excited about and has certainly changed our view of 2022.

因此，總而言之，儘管我們必須應對真正的宏觀逆風，而且我對我們的團隊有信心，但復甦——COVID 中真正的複蘇轉變是我們一直在等待的亮點我們對 2022 年感到興奮，並且肯定改變了我們對 2022 年的看法。

And with that, I'm going to turn the call over to Suky for a deeper dive into Q1 and our revised expectations for the full year. Okay, Suky?

因此，我將把電話轉給 Suky，以便更深入地了解第一季度和我們對全年的修訂預期。好的，蘇基？

Thanks, and good morning, everyone. We had a good quarter driven by faster-than-expected recovery of elective procedures, giving us the confidence to raise our full year revenue and earnings per share outlook.

謝謝，大家早上好。由於擇期程序的恢復速度快於預期，我們有一個良好的季度，這使我們有信心提高全年收入和每股收益前景。

Let's turn to our Q1 results and how that translates into our updated full year financial guidance. Unless otherwise noted, my statements will be about the first quarter 2022 and how it compares to the same period in '21, and my commentary will be on a constant currency and adjusted continuing operations basis. Please note, we have changed our geographic revenue reporting to U.S. and international and we released a Form 8-K last week to provide unaudited recasted financial information related to our ZimVie spinoff, as well as a change in non-GAAP reporting of in-process R&D related expenses.

讓我們來看看我們的第一季度業績以及如何將其轉化為我們更新的全年財務指南。除非另有說明，否則我的陳述將是關於 2022 年第一季度及其與 21 年同期的比較，我的評論將以不變貨幣和調整後的持續經營為基礎。請注意，我們已將我們的地理收入報告更改為美國和國際，我們上週發布了 8-K 表格，以提供與我們的 ZimVie 分拆相關的未經審計的重鑄財務信息，以及對正在進行的非 GAAP 報告的更改研發相關費用。

Moving to first quarter performance. Net sales in the first quarter were $1.663 billion, up 3.9% on a reported and 6.8% on a constant currency basis. As previously guided, selling days contributed about 130 basis points of tailwind in the quarter. Revenue was driven by continued execution along with stronger and faster than expected COVID recovery across most markets, with the largest uplift in the U.S. After significantly pressured January, recovery ramped through the quarter with improvement in February and a strong rebound in March.

轉向第一季度業績。第一季度的淨銷售額為 16.63 億美元，較報告增長 3.9%，按固定匯率計算增長 6.8%。如前所述，銷售天數在本季度貢獻了約 130 個基點的順風。收入受到持續執行以及大多數市場 COVID 復甦的強勁和快於預期的推動，其中美國的漲幅最大。在 1 月份承受巨大壓力之後，該季度復甦勢頭強勁，2 月份有所改善，3 月份出現強勁反彈。

On a consolidated basis, March grew versus pre-pandemic levels, and that recovery has continued into April. U.S. sales grew 5.8%, driven by strong recovery as COVID cases subsided and elective procedures returned. By the end of the quarter, U.S. cancellation rates have returned to pre-pandemic levels and procedure volumes were above 2019. International sales grew 8.1%, driven by strong growth across Europe, and we saw continued recovery despite COVID surges in certain European markets in China.

在綜合基礎上，3 月份與大流行前的水平相比有所增長，而且這種複蘇一直持續到 4 月份。美國銷售額增長 5.8%，受 COVID 病例消退和選擇性手術恢復的強勁復甦推動。到本季度末，美國的取消率已恢復到大流行前的水平，手術量高於 2019 年。在歐洲強勁增長的推動下，國際銷售額增長了 8.1%，儘管 2019 年某些歐洲市場的 COVID 激增，我們仍看到了持續復甦中國。

Turning to our business category performance in the first quarter. As a reminder, China VBP is expected to be about neutral to overall revenue growth for the full year. And so far, the 2022 impact is broadly in line with our original expectations. While we don't expect a material impact from VBP on full year 2022 growth, we do expect there to be fluctuation by quarter. In the first quarter, we saw about a 200 to 300 basis points of pressure across our global knee, hip and S.E.T. segments, which we expect to be broadly offset through the next 3 quarters, with the majority coming in the fourth quarter.

轉向我們第一季度的業務類別表現。提醒一下，中國 VBP 預計對全年整體收入增長基本保持中性。到目前為止，2022 年的影響大致符合我們最初的預期。雖然我們預計 VBP 不會對 2022 年全年增長產生重大影響，但我們確實預計每個季度都會出現波動。在第一季度，我們看到全球膝蓋、臀部和 S.E.T. 承受了大約 200 到 300 個基點的壓力。細分市場，我們預計在接下來的三個季度中將被廣泛抵消，其中大部分將在第四季度出現。

Global Knees grew 11%, with U.S. knees up 11.7% and international knees up 10.1%, driven by solid commercial execution, continued traction for Persona Revision, Robotics pull-through and strong knee procedure recovery across most markets. Global Hips grew 4.5%, with U.S. Hips up 3.3% and international Hips up 5.6%, driven by recovery in both primary and revision hip procedures, and we're seeing positive early traction on ROSA Hip. The sports and extremities and trauma category increased 1.8%, driven by strong performance in CMFT, sports medicine and upper extremities. And finally, our other category grew 11.5%.

全球膝關節增長 11%，其中美國膝關節增長 11.7%，國際膝關節增長 10.1%，這得益於紮實的商業執行、Persona Revision 的持續牽引力、機器人技術的成功以及大多數市場膝關節手術的強勁復甦。全球髖關節增長 4.5%，其中美國髖關節增長 3.3%，國際髖關節增長 5.6%，主要受髖關節初級手術和翻修手術恢復的推動，我們看到 ROSA Hip 的早期積極牽引力。受 CMFT、運動醫學和上肢領域強勁表現的推動，運動與四肢和創傷類別增長了 1.8%。最後，我們的其他類別增長了 11.5%。

Moving to the P&L. For the quarter, on a continuing operations basis, we reported GAAP diluted earnings per share of $0.35 compared to GAAP diluted earnings per share of $0.92 in the first quarter of 2021. This decrease was driven primarily by an unrealized investment loss due to a decline in the value of our investment in ZimVie and higher litigation related and restructuring charges. On an adjusted basis, diluted earnings per share from continuing operations of $1.61 represents an increase from $1.55 in the first quarter of 2021. The increase was largely driven by higher sales and lower interest expense.

轉到損益表。本季度，在持續經營的基礎上，我們報告 GAAP 攤薄後每股收益為 0.35 美元，而 2021 年第一季度 GAAP 攤薄後每股收益為 0.92 美元。這一下降主要是由於未實現的投資損失導致的我們在 ZimVie 的投資價值以及更高的訴訟相關費用和重組費用。在調整後的基礎上，來自持續經營業務的攤薄後每股收益為 1.61 美元，高於 2021 年第一季度的 1.55 美元。這一增長主要是由於銷售額增加和利息支出減少所致。

Adjusted gross margin was 70.6%, lower than the prior year as expected due to VBP and higher input and manufacturing costs, which were partially offset by higher volumes and better mix. Our adjusted operating expenses were about $735 million, up from the prior year, driven by higher investments in R&D. Our adjusted operating margin for the quarter was 26.4%, down versus the prior year, but ahead of expectations and driven by higher revenue. The adjusted tax rate was 16.1% in the quarter, in line with our expectations.

調整後的毛利率為 70.6%，低於上一年的預期，原因是 VBP 以及更高的投入和製造成本，這部分被更高的銷量和更好的組合所抵消。受研發投資增加的推動，我們調整後的運營費用約為 7.35 億美元，高於上一年。我們本季度調整後的營業利潤率為 26.4%，低於上年同期，但在收入增加的推動下超出了預期。本季度調整後的稅率為 16.1%，符合我們的預期。

Now, turning to cash and liquidity. Operating cash flows from continuing operations were $360 million and free cash flow totaled $223 million for the quarter. We reduced our debt by about $650 million, excluding the effects of foreign currency and ended the first quarter with cash and cash equivalents of about $435 million. Our improving financial performance, in tandem with our ongoing debt reduction continue to strengthen our balance sheet.

現在，轉向現金和流動性。本季度來自持續經營的經營現金流為 3.6 億美元，自由現金流總計 2.23 億美元。我們減少了約 6.5 億美元的債務，不包括外幣的影響，並且在第一季度結束時現金和現金等價物約為 4.35 億美元。我們不斷改善的財務業績以及持續的債務削減繼續加強我們的資產負債表。

Moving to our updated financial outlook for 2022. While we continue to manage through macro headwinds related to foreign currency, Russia, inflation and supply chain challenges, a faster and stronger COVID recovery in tandem with a positive first quarter to give us the confidence to raise and tighten our financial guidance.

轉到我們更新的 2022 年財務展望。雖然我們繼續應對與外匯、俄羅斯、通貨膨脹和供應鏈挑戰相關的宏觀逆風，但更快、更強勁的 COVID 復甦與積極的第一季度相結合，使我們有信心提高並收緊我們的財務指導。

Against this backdrop, our current expectations for the full year are as follows: on a constant currency basis, we now expect to grow 2% to 4% versus 2021, with an expected foreign currency headwind of approximately 350 basis points. This translates into a reported revenue growth projection in the range of negative 1.5% to positive 0.5% versus 2021. Note that the selling day tailwind that we saw in the first quarter will be fully reversed in the fourth quarter, with no material full year selling day impact.

在此背景下，我們目前對全年的預期如下：在固定匯率的基礎上，我們現在預計比 2021 年增長 2% 至 4%，預計外匯逆風約為 350 個基點。這轉化為與 2021 年相比，報告的收入增長預測範圍為負 1.5% 至正 0.5%。請注意，我們在第一季度看到的銷售日順風將在第四季度完全逆轉，全年沒有實質性銷售日影響。

Adjusted operating profit margins continue to be in the range of 26.5% to 27.5%. This assumes inflationary pressure of about 150 basis points versus our original estimate of about 50 basis points. Of the incremental 100 basis points of pressure, a half will hit 2022, but be offset by expected higher revenue and roughly half will be capitalized and impact 2023.

調整後的營業利潤率繼續在 26.5% 至 27.5% 的範圍內。這是假設通貨膨脹壓力約為 150 個基點，而我們最初的估計約為 50 個基點。在增加的 100 個基點壓力中，一半將在 2022 年出現，但會被預期更高的收入所抵消，大約一半將被資本化並影響到 2023 年。

Adjusted tax rate expectations remain in the range of 16% to 16.5%. Adjusted diluted earnings per share is now expected to be higher at $6.65 to $6.85, and we are increasing free cash flow to $750 million to $850 million. Inside of that guidance, we have a tougher comp in the second quarter due to COVID recovery we experienced in 2021. But we do expect revenue to grow in the low single digits over the second quarter of '21, and to exceed pre-pandemic levels for the full quarter.

調整後的稅率預期保持在 16% 至 16.5% 的範圍內。調整後的攤薄每股收益現在預計會更高，達到 6.65 美元至 6.85 美元，我們正在將自由現金流增加至 7.5 億美元至 8.5 億美元。在該指導範圍內，由於我們在 2021 年經歷了 COVID 恢復，我們在第二季度的表現更為艱難。但我們確實預計收入將在 2021 年第二季度以較低的個位數增長，並超過大流行前的水平整個季度。

In summary, we expect that the environment will remain dynamic, but we believe the pace of recovery, our continued execution and the strength of ZB's underlying business fundamentals position us well to improve our financial outlook.

總而言之，我們預計環境將保持動態，但我們相信復甦的步伐、我們持續的執行力以及 ZB 潛在業務基本面的實力使我們能夠很好地改善我們的財務前景。

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

有了這個，我會把電話轉回 Keri。

Thanks, Suky. (Operator Instructions) With that, operator, may we have the first question, please?

謝謝，蘇基。 （操作員說明）這樣，操作員，我們可以問第一個問題嗎？

(Operator Instructions) Our first question comes from Joanne Wuensch with Citi.

（操作員說明）我們的第一個問題來自花旗銀行的 Joanne Wuensch。

Very nice quarter. I'd be interested in your view of what's happening at the hospital level. We've been hearing all season about staffing headwinds, about CapEx spending headwinds, and I would be curious to get your opinion on that.

非常好的季度。我很想知道你對醫院層面正在發生的事情的看法。整個賽季我們都在聽到關於人員配備逆風、資本支出支出逆風的消息，我很想听聽你對此的看法。

Yes. So maybe, I'll just start off and then I've got Ivan sitting next to me. We're actually here traveling in Europe. We take the opportunity to get out and start Q2 strong. What I would tell you is that yes, we are definitely still seeing pressure from a staffing standpoint. And we actually, even today, would expect that to continue throughout the year.

是的。所以也許，我會開始，然後我讓 Ivan 坐在我旁邊。我們實際上是在歐洲旅行。我們藉此機會走出去，強勢開啟第二季度。我要告訴你的是，是的，從人員配置的角度來看，我們肯定仍然面臨壓力。實際上，即使在今天，我們也希望這種情況會持續一整年。

When I think about the quarter itself, whether it be COVID or staffing, or a combination of the 2, it was pretty tough in January. It gets better, obviously, in February and that was really, really good in March. Actually, March was a month that we had growth over 2019. So a true growth over pre-pandemic levels, and we're seeing that continue into April.

當我考慮這個季度本身時，無論是 COVID 還是人員配置，或者兩者的結合，一月份都非常艱難。很明顯，在 2 月份情況會好轉，而 3 月份的情況真的非常好。實際上，3 月是我們在 2019 年實現增長的一個月。因此，真正的增長超過了大流行前的水平，我們看到這種情況會持續到 4 月。

So all positive from that perspective, but we do expect that staffing pressure will continue to be a challenge throughout the year, just not as intense, I think, is what we thought when we started the year. But Ivan, you're out there, more than I am in the U.S., maybe you could also.

因此，從這個角度來看，一切都是積極的，但我們確實預計，人員配備壓力將在全年繼續成為一個挑戰，我認為，我認為，這並不像我們年初時所想的那樣激烈。但是伊万，你在外面的時間比我在美國的時間還多，也許你也可以。

Yes. Absolutely. Thank you, Bryan. So I concur, it remains a headwind. What I will tell you is that in the U.S., we have seen our cancellation rates, so the case also be the case that we cancel every week to starting to look pretty much similar to those cancellation rates in 2019. In the past, most cancellations were case related, so fear and anxiety in the early acute staffing challenges, day 21. It was mainly staff driven -- staffing driven. Another fact that we're seeing that is starting to look less versus that it probably is not getting worse, but it has been a problem. Let's look probably in Europe and other markets in the U.S., but it remains a challenge in the U.S.

是的。絕對地。謝謝你，布萊恩。所以我同意，這仍然是一個逆風。我要告訴你的是，在美國，我們已經看到了我們的取消率，所以我們每週取消的情況也是如此，開始看起來與 2019 年的取消率非常相似。過去，大多數取消與案例相關，因此在第 21 天的早期急性人員配置挑戰中感到恐懼和焦慮。這主要是人員驅動的——人員配置驅動。我們看到的另一個事實是，與它可能沒有變得更糟相比，它開始看起來不那麼嚴重了，但這一直是一個問題。讓我們看看歐洲和美國的其他市場，但這在美國仍然是一個挑戰。

Joanne, was your follow-up about capital and the capital markets? Net pressure?

喬安妮，你的後續行動是關於資本和資本市場的嗎？淨壓力？

Yes. No -- yes, capital purchasing.

是的。不——是的，資本採購。

So I'm having a hard time hearing her for some reason. I don't know if maybe, Keri, you could repeat the question. I couldn't hear it.

所以出於某種原因我很難聽到她的聲音。 Keri，我不知道你是否可以重複這個問題。我聽不見。

Sure. Bryan, Ivan. Joanne was asking about capital purchasing and what we're seeing on those trends.

當然。布萊恩，伊万。喬安妮問的是資本購買以及我們對這些趨勢的看法。

Yes. I can take that question as well. So primarily, we sell capital in 2 businesses, our Surgical business and obviously, Robotics in our knee and hip platform. We've not seen anything that tells us that is a shortage of capital. What the strategy for the quarter has been more around placement than selling robots. But on the surgical side, we're not seeing a challenge. We're not seeing that we've seen less fluidity than in Q4. So I'm actually pretty optimistic in terms of where we are when it comes to capital allocation from a hospital standpoint. But again, as I mentioned, we're doing more placements than sales in the quarter. We did more placements than sales in the quarter. Thanks for the question.

是的。我也可以回答這個問題。所以主要是，我們出售 2 個業務的資本，我們的外科業務，顯然，我們的膝蓋和臀部平台的機器人技術。我們沒有看到任何跡象表明資金短缺。本季度的策略更多地圍繞安置而不是銷售機器人。但在手術方面，我們沒有看到挑戰。我們沒有看到流動性低於第四季度。因此，從醫院的角度來看，就我們在資本配置方面所處的位置而言，我實際上非常樂觀。但同樣，正如我提到的，我們在本季度進行的安置多於銷售。我們在本季度進行的安置多於銷售。謝謝你的問題。

Our next question comes from Travis Steed with Bank of America.

我們的下一個問題來自美國銀行的 Travis Steed。

Congrats on the quarter. I appreciate the colors on the margin pressures, but I just want to make sure it's clear how we're thinking about how these pressures flow through to 2023. It sounds like 50 basis points of incremental pressure at this point. But also, curious if you have any offsets like pricing. It was kind of noticeable that you didn't put pricing in the press release this quarter for the first time. So curious how you're thinking about that.

祝賀這個季度。我很欣賞利潤率壓力的顏色，但我只是想確保清楚我們是如何考慮這些壓力如何流動到 2023 年的。這聽起來像是 50 個基點的增量壓力。但是，如果你有任何補償，比如定價，也很好奇。值得注意的是，您第一次沒有在本季度的新聞稿中定價。很好奇你是怎麼想的。

Yes. Sure. Hey, Travis, this is Suky. Thanks for the question. I'll start, and then, maybe, turn it over to Ivan on the pricing question that you had. So you heard correctly. We think that inflationary pressures are going to be roughly 150 basis points of a headwind on margins this year. Our original estimate back on the Q4 call was 50 basis points.

是的。當然。嘿，特拉維斯，這是蘇基。謝謝你的問題。我會開始，然後，也許，就您遇到的定價問題將其交給 Ivan。所以你沒有聽錯。我們認為，今年通脹壓力將對利潤率造成大約 150 個基點的不利影響。我們在第四季度電話會議上的最初估計是 50 個基點。

So we think we're somewhere in the additional 100 basis point range from where we originally were. And we were seeing that pressure grow post our call, but it really started to accelerate with the war in Ukraine. And I don't think inconsistent with what you're hearing really, across the sector and probably, in other industries as well.

因此，我們認為我們處於比原來高出 100 個基點的範圍內。我們在通話後看到壓力在增加，但隨著烏克蘭戰爭，壓力確實開始加速。而且我認為這與您在整個行業甚至可能在其他行業所聽到的真實情況並不矛盾。

Now, the way this works is, part of that pressure, about half of that, will hit this year. But given the way we account for costs and variances, and given the higher level of inventory that we carried, about half of that additional pressure will be capitalized and deferred into 2023. So about 50 basis points of that incremental 100 will find its way into next year.

現在，它的運作方式是，部分壓力，大約一半，將在今年到來。但考慮到我們計算成本和差異的方式，以及我們持有的更高水平的庫存，大約一半的額外壓力將被資本化並推遲到 2023 年。因此，增量 100 中的大約 50 個基點將進入明年。

I would say that the key challenges that we're seeing, again, very consistent across the sector from a supply chain standpoint. First, freight is higher, commodity costs are higher, energy costs and labor costs. The biggest culprit within that is our commodity costs. The good thing is we're starting to see some stabilization around that.

我要說的是，從供應鏈的角度來看，我們再次看到整個行業面臨的主要挑戰非常一致。首先，運費更高，商品成本更高，能源成本和人工成本。其中最大的罪魁禍首是我們的商品成本。好消息是我們開始看到圍繞它的一些穩定。

We do still see some higher costs related to stainless steel, packaging materials like plastics and resins and of course, titanium, which we're doing a lot of spot buys to secure our safety stock and supply chain. But what we're hearing from our supply chain organization is that's starting to stabilize.

我們仍然看到與不銹鋼、塑料和樹脂等包裝材料相關的一些更高的成本，當然還有鈦，我們正在進行大量現貨採購以確保我們的安全庫存和供應鏈。但我們從我們的供應鏈組織那裡聽到的是，這種情況開始趨於穩定。

Now, the environment is still very dynamic, so we'll keep you posted as the year progresses. But the good thing is that the largest headwind that we've got feels like it's beginning to stabilize a bit. Inside of that, from a pricing standpoint, we did see a slightly better quarter this quarter on -- from a pricing perspective year-over-year. Some of that is due to some specific strategies and tactics that the team is putting in place to better control pricing erosion year-over-year.

現在，環境仍然充滿活力，所以我們會隨著時間的推移及時通知您。但好消息是，我們所遇到的最大逆風似乎開始趨於穩定。其中，從定價的角度來看，我們確實看到本季度比去年同期略有好轉。其中一部分是由於該團隊正在實施一些特定的戰略和策略，以更好地控制價格逐年下降。

And some of that, I think, is just a little bit still opportunistic, because with the continued COVID headwinds that we saw in the beginning part of the quarter, that results in lower volumes, that then results in lower rebate thresholds for some of our customers. And so that sort of helps a tailwind on our pricing, probably, temporarily while our volumes are more muted. But maybe, Ivan, do you want to talk a little bit about what you're seeing in the pricing environment and our ability to offset price or pass price pressure onto the end markets.

我認為，其中一些仍然是機會主義的，因為我們在本季度初看到的持續的 COVID 逆風導致銷量下降，然後導致我們的一些退稅門檻降低顧客。因此，這可能有助於我們定價的順風，可能是暫時的，而我們的銷量更加低迷。但也許，伊万，你想談談你在定價環境中看到的情況，以及我們抵消價格或將價格壓力傳遞給終端市場的能力。

Absolutely, Suky. Hey, Travis, Ivan here. So as Suky alluded to and the normal price erosions around 200 to 300 basis points, we did achieve better than price erosion in the quarter. Some components of that are sustainable. Others that remain to be seen. What I will tell you is that we got governance today in the U.S. and frankly, in Europe and APAC that we didn't have in the past. As we see our vitality index or percentage of sales coming from new products. We see that as a tailwind. And again, we'll see how that develops in quarters to come.

當然，蘇基。嘿，特拉維斯，這裡是伊万。因此，正如 Suky 提到的那樣，正常價格下跌 200 到 300 個基點左右，我們在本季度的表現確實好於價格下跌。其中的一些組成部分是可持續的。其他還有待觀察。我要告訴你的是，我們今天在美國獲得了治理，坦率地說，在歐洲和亞太地區，我們過去沒有。正如我們所看到的，我們的活力指數或來自新產品的銷售額百分比。我們認為這是順風。再一次，我們將看到未來幾個季度的發展情況。

And from an incentive standpoint, for the first time, we do have very clear incentives in our commercial organization to maintain or gain price. So we're not making a commitment to do any better than the true to 300 basis points, given that a large percentage of the business is contracted. But certainly, we have the plans and the governance that we didn't have before. So fingers crossed on that one.

從激勵的角度來看，我們的商業組織第一次確實有非常明確的激勵措施來維持或獲得價格。因此，鑑於大部分業務已簽約，我們不會承諾比真實的 300 個基點做得更好。但可以肯定的是，我們有我們以前沒有的計劃和治理。所以手指交叉在那個上。

Yes, I appreciate all that color. And Suky, one follow-up on China. I just want to make sure we're modeling that correctly. It sounds like it was 200 to 300 basis point headwind to total company organic growth this quarter, but that comes back in Q4. And if you just look at China volume with the shutdowns, I'd love to hear how that's playing out in Q2 and the recovery there from a volume perspective.

是的，我很欣賞那種顏色。還有 Suky，關於中國的後續報導。我只是想確保我們正確地建模。聽起來本季度公司整體有機增長受到 200 到 300 個基點的不利影響，但這在第四季度又回來了。如果你只看中國停產的數量，我很想听聽第二季度的情況以及從數量角度來看那裡的複蘇情況。

Yes. So the China volumes have clearly been negatively impacted because of some of the COVID surges that you've been hearing about. It's most acute in Shanghai. We did see earlier in the quarter some additional lockdowns in other cities. The good thing is, right now, we're not seeing any lockdowns beyond Shanghai. Now, there is limited movement in other provinces, but there are no shutdowns, and we're still seeing cases being performed there. Shanghai still remains the most acute situation in China.

是的。因此，由於您一直聽說的一些 COVID 激增，中國的銷量顯然受到了負面影響。上海最為嚴重。我們確實在本季度早些時候看到其他城市的一些額外封鎖。好消息是，目前我們沒有看到上海以外的地方有任何封鎖。現在，其他省份的活動有限，但沒有停工，我們仍然看到那裡有病例在進行。上海仍然是中國最嚴峻的形勢。

I'll just back you up a little bit. Remember, China is in the low single digits of revenue of the entire company. and Shanghai, inside of China, is just a relatively modest fraction. So while we're still seeing pressures specifically in that province, I think it's manageable and somewhat moderated. Again, broadly beyond Shanghai, we're seeing stabilization to improvement. We just have to keep a very close eye on China -- or excuse me, on Shanghai. But the way you're thinking about the impact of VBP is correct.

我只是稍微支持你一下。請記住，中國在整個公司的收入中處於較低的個位數。而在中國境內的上海只是相對較小的一部分。因此，雖然我們仍然看到特別是在該省的壓力，但我認為它是可控的並且有所緩和。同樣，在上海之外，我們看到了從穩定到改善的趨勢。我們只需要非常密切地關注中國——或者對不起，關注上海。但是您考慮 VBP 影響的方式是正確的。

I might just to add some commentary there. It's interesting because even though there's a lot that's happening that's different than expected in China, the overall impact to the quarter was about what we expected and even into and out coming into Q2, so for different reasons. But the fact is, even though we're seeing lockdowns in Shanghai and disruption as a result, we're also seeing delays in VBP implementation, and those are almost balancing each other. So while certainly, China was still a headwind for the quarter, from a top and bottom line standpoint, it was pretty much in line with what we expected, even though for just different reasons.

我可能只是想在那裡添加一些評論。這很有趣，因為儘管中國發生了很多與預期不同的事情，但對本季度的總體影響與我們預期的一樣，甚至進入和退出第二季度，所以出於不同的原因。但事實是，即使我們看到上海的封鎖和由此造成的中斷，我們也看到 VBP 實施的延遲，而這些幾乎是相互平衡的。因此，儘管出於不同的原因，但從頂線和底線的角度來看，中國仍然是本季度的逆風，這與我們的預期非常一致。

Our next question comes from Amit Hazan with Goldman Sachs.

我們的下一個問題來自高盛的 Amit Hazan。

Maybe, start with market share. And I want to just ask you the question -- I mean, I know it's hard to tell the trends given the last couple of years, but as we look at 3-year CAGRs and just try to make sense of what's going on in the U.S., it's actually not very clear that you are consistently gaining share. And I'm trying to think about this in the context of the 600 or so ROSAs at least that you have in the field, I'm sure that's a little bit higher now. And just trying to understand if there are offsets there or how you're thinking about market share in the U.S. or for knees in particular, but Knees and Hips, because the data doesn't strongly suggest that you're gaining share.

也許，從市場份額開始。我只想問你一個問題——我的意思是，我知道很難說出過去幾年的趨勢，但當我們看一下 3 年的複合年增長率並試圖弄清楚現在發生了什麼美國，實際上並不是很清楚你是否一直在增加份額。我正在嘗試在至少 600 個左右的 ROSA 的背景下考慮這個問題，我敢肯定現在這個數字要高一些。只是想了解那裡是否存在抵消，或者你如何考慮美國的市場份額，或者特別是膝蓋，但膝蓋和臀部，因為數據並沒有強烈表明你正在獲得份額。

Yes. So I'll take that, and then I'll pass it over to you Ivan to talk about some specifics. But it probably all depends on how you're running your data, because I would probably argue the different outcome. The fact is it's choppy, it's really choppy. And we're looking at this thing in every different way you can, sequential growth versus the previous quarter. We're looking at it versus prior year, versus 2019, because that was your last good year. We're looking at it on a stack basis, you name it, we're running the analysis to get a sense for what we're doing.

是的。所以我會接受它，然後我會把它傳遞給你 Ivan 來談談一些細節。但這可能完全取決於您如何運行數據，因為我可能會爭論不同的結果。事實是它起伏不定，真的很起伏。我們正在以各種不同的方式看待這件事，與上一季度相比連續增長。我們正在對比前一年和 2019 年，因為那是你最後一個好年頭。我們正在堆棧的基礎上查看它，隨便你怎麼說，我們正在運行分析以了解我們在做什麼。

What I've said always is that I don't really trust any given quarter, but I do look at trends. In almost any which way I slice it, I do see us moving in the right direction. And of course, I also see things that you can't see in our own business. And the combination of the trends that I'm seeing, looking at it a lot of different ways and also, just the things that I see in my own business. I feel very confident that we're moving in the right direction, and we're doing the things that we need to do to be able to drive attractive growth.

我一直在說的是，我並不真正相信任何給定的季度，但我確實關注趨勢。幾乎在我切開它的任何方式中，我確實看到我們朝著正確的方向前進。當然，我也看到了你在我們自己的業務中看不到的東西。以及我所看到的趨勢的結合，以多種不同的方式看待它，以及我在自己的業務中看到的事情。我非常有信心我們正朝著正確的方向前進，我們正在做我們需要做的事情來推動有吸引力的增長。

So the big one that I look at is vitality index. We have almost no vitality in the business, we've doubled that in the last few years, and that continues to move north, and we've got a very strong pipeline of products. So to me, when I think about that performance, it's clear. I think the transformation is real. And the good news for us is that as COVID and staffing issues start to clear and continue to clear, that the reported performance that we have as a business is finally going to start reflecting what we actually know what's happening in the business. But gives us a lot of confidence, again, is the innovation. So maybe Ivan, you want to talk about some of the innovation that gets you excited.

所以我看的大的是活力指數。我們的業務幾乎沒有活力，過去幾年我們翻了一番，並且繼續向北移動，我們有非常強大的產品線。所以對我來說，當我想到那場表演時，很清楚。我認為轉變是真實的。對我們來說，好消息是，隨著 COVID 和人員配置問題開始明朗化並繼續明朗化，我們作為一家企業所報告的業績最終將開始反映我們實際了解的企業正在發生的事情。但是給我們很大信心的，再次是創新。所以也許伊万，你想談談一些讓你興奮的創新。

Yes, absolutely. And I mean, I look forward to the day where we have objective and market share data because I also defer from that statement on market share. But that said, I'm beyond excited about what we got in the store. So some of the products that we keep talking about, ROSA, you mentioned 600 robots at place. Obviously, the number is higher now. We're getting a strong penetration in key accounts, both in the hospital setting and in the outpatient setting.

是的，一點沒錯。我的意思是，我期待著我們擁有客觀和市場份額數據的那一天，因為我也推遲了關於市場份額的聲明。但話雖如此，我對我們在商店裡得到的東西感到非常興奮。所以我們一直在談論的一些產品，ROSA，你提到了 600 個機器人。顯然，現在這個數字更高了。我們在醫院環境和門診環境中對關鍵客戶的滲透率很高。

We had 2 indications, plenty of indications to come. Revision has only been launched in the U.S., but continues to grow at unprecedented rates, is pulling now primary needs as well along the way. ZBH, I would spend an hour talking about all the things that you probably saw in academy, Chicago. Whether it's WalkAI, mymobility and tooth free configurations by where we had the largest number of enrollments this last quarter. Cementless needs penetration is also in the teams. And that's before we launch a new form factor device at the end of this -- earlier this year, which is going to give us breaking the category. So that's just the Knees. And manually, we launched 6 products in the last 2 years.

我們有 2 個適應症，還有很多適應症。 Revision 僅在美國推出，但繼續以前所未有的速度增長，同時也拉動了現在的基本需求。 ZBH，我會花一個小時談論你可能在芝加哥學院看到的所有事情。無論是 WalkAI、mymobility 還是上個季度註冊人數最多的無牙配置。無水泥需求滲透也在團隊中。那是在我們今年年底推出新外形設備之前——今年早些時候，這將使我們打破這一類別。所以這只是膝蓋。在過去的兩年裡，我們手動推出了 6 種產品。

As you look into Hips, we are performing strongly with Avenir Complete, direct interior or Revision platform. We don't talk enough about that. Somebody is also performing very well. Instead, CMFT Sports Med and Trauma are doing well. We had some noise with our trauma early in the year, but we got new launches and new product launches to come. And just a ton of stuff coming from a data and technology standpoint.

當您查看 Hips 時，我們在 Avenir Complete、direct interior 或 Revision 平台上表現強勁。我們對此討論得還不夠。有人也表現得很好。相反，CMFT Sports Med 和 Trauma 表現良好。今年年初，我們因創傷而發出一些聲音，但我們有新的發布和新產品的發布。從數據和技術的角度來看，還有很多東西。

So I don't know if we're looking at the same data when it looks to market share, but what I do know is that as you look at the innovation story with the Vitality Index being 2x what it used to be and the pipeline being dramatically higher than it used to be 3 years ago. I'm pretty confident that we're going to remain above market for the key categories.

所以我不知道我們在查看市場份額時是否正在查看相同的數據，但我所知道的是，當您查看創新故事時，活力指數是過去的 2 倍，並且正在開發中明顯高於 3 年前的水平。我非常有信心我們將在關鍵類別中保持高於市場的水平。

I would love to know specifically if you do have the data on the U.S. Knees and Hips what your data says, I'm sure it's better than ours. But the second follow-up would be for you, Bryan. Just on capital allocation, just how you're thinking about M&A post the spin now and in this particular environment, if you want us to be thinking about natural limits to kind of the size of the deal you'd be looking at and how you're thinking about adjacencies versus whiteboard opportunities? Just any color would be super helpful.

我很想具體知道你是否有關於美國膝蓋和臀部的數據，你的數據說的是什麼，我相信它比我們的好。但是第二次跟進是給你的，布賴恩。就資本配置而言，如果您希望我們考慮自然限制，以考慮您將要考慮的交易規模以及您如何正在考慮鄰接與白板的機會？任何顏色都會非常有幫助。

Yes, yes. So maybe, I'll kind of start kind of top line, and then I'll hand it to Suky to talk about capital allocation and our current focus there. But yes, for sure, M&A and active portfolio management is a big part of what we define as Phase III of the transformation. Just as a quick reminder, we started this whole journey in Phase I, which I'm just going to define as kind of the hearts and minds, in other words, kind of mission and culture, focus, significant upgrading and talent at the leadership team level to make sure we have the right people to transform the business and then stabilizing just a number of significant issues around quality compliance, turnover supply, you name it.

是的是的。所以也許，我會開始做頂線，然後我會把它交給 Suky 來談談資本配置和我們目前在那裡的重點。但是，可以肯定的是，併購和積極的投資組合管理是我們定義為轉型第三階段的重要組成部分。快速提醒一下，我們在第一階段開始了整個旅程，我將其定義為一種心靈和思想，換句話說，一種使命和文化、專注、重大升級和領導才能團隊層面，以確保我們有合適的人來改造業務，然後穩定一些圍繞質量合規性、營業額供應等重要問題。

Phase II was more around a true long-term strategy, making sure that we're shifting to innovation versus remediation and really, changing the kind of innovation we were focused on, and then augmenting our structure and operating mechanisms to ensure that we truly do drive execution and accountability to the strategy.

第二階段更多的是圍繞一個真正的長期戰略，確保我們轉向創新而不是補救，真正改變我們關注的創新類型，然後增強我們的結構和運營機制以確保我們真正做到推動戰略的執行和問責制。

And the Phase III is kind of where we are and kind of to your question, we are looking to transform the portfolio of the company. Now, COVID has hampered our ability to do that, because it's put pressure on the business. We haven't had as much firepower. But the fact is we have made decisions here that are moving the needle.

第三階段是我們所處的位置，也是你的問題，我們正在尋求改變公司的投資組合。現在，COVID 阻礙了我們這樣做的能力，因為它給業務帶來了壓力。我們沒有那麼多的火力。但事實是，我們在這裡做出的決定正在發揮作用。

Number one, we've got the spin of the Dental and Spine businesses, which we think is the right thing for both businesses. And although there have been smaller, because we have the firepower, we've done acquisitions to be able to build scale in attractive spaces. But for sure, we will continue to focus on active portfolio management, acquiring companies that can drive weighted average market growth for us and our mission centric.

第一，我們對牙科和脊柱業務進行了調整，我們認為這對這兩個業務都是正確的。儘管規模較小，但因為我們有火力，我們已經進行了收購，以便能夠在有吸引力的空間中擴大規模。但可以肯定的是，我們將繼續專注於積極的投資組合管理，收購能夠為我們和我們以使命為中心推動加權平均市場增長的公司。

I'm not going to get into specifics on where we would focus because, as you probably know, it's pretty competitive there right now for assets, but this is something that we absolutely will focus on in Phase III. The good news is, as we continue to see stabilization in the market, we're going to be able to continue to buy down debt, which is important to us and eventually increase the firepower to do this. But Suky, maybe, I'll just turn it over to you to talk about current capital allocation.

我不打算詳細說明我們將關注的重點，因為正如您可能知道的那樣，現在那裡的資產競爭非常激烈，但這是我們絕對會在第三階段關注的事情。好消息是，隨著我們繼續看到市場穩定，我們將能夠繼續購買債務，這對我們很重要，並最終增加這樣做的火力。但是 Suky，也許，我會把它交給你來談談當前的資本配置。

Sure. Thank you, Bryan, and thanks, Amit, for the question. So our focus has been very consistent in ensuring that we continue to pay down debt and maintain our investment grade. And just a little fact point here. Since 2019, we've paid down almost $3 billion of debt, and that's in the backdrop of a pandemic that's had significant pressure on our financial performance. So it speaks to the strength and durability of our cash flows as a company.

當然。謝謝 Bryan，也謝謝 Amit 提出的問題。因此，我們的重點一直非常一致，以確保我們繼續償還債務並維持我們的投資等級。這裡只是一點點事實。自 2019 年以來，我們已經償還了近 30 億美元的債務，而這是在大流行病對我們的財務業績造成巨大壓力的背景下發生的。因此，它說明了我們作為一家公司的現金流的實力和持久性。

But when you combine that priority as a capital allocation together with improving financial performance relative to growth in EBITDA, it really does start to set us up pretty nicely for more strategic optionality, as Bryan talked about, with active portfolio management. I think, in a bigger way, enables us to look at opportunities to accelerate the top and bottom line growth of the company while diversifying it as well. And I think all of those things are very credit positive.

但是，當你將這一優先事項作為資本配置與相對於 EBITDA 增長的財務業績改善相結合時，它確實開始讓我們為更多的戰略選擇做好準備，正如 Bryan 談到的那樣，通過積極的投資組合管理。我認為，從更大的角度來看，這使我們能夠尋找機會加速公司的頂線和底線增長，同時實現多元化。而且我認為所有這些事情都非常值得信賴。

And so while we will probably take more of a front foot in that active portfolio management category as Bryan talked about, especially now coming off the spin and quite frankly, the organization has got now more bandwidth, having undertaken and gotten that very heavy lift behind us, we will undertake that active portfolio management with an eye towards maintaining our investment-grade ratings. So it feels good to start to turn the corner on that and to know that all of our hard work in delevering the balance sheet, improving financial performance is actually starting to pull through.

因此，雖然我們可能會像 Bryan 所說的那樣在積極的投資組合管理類別中佔據更多的前腳，尤其是現在正在擺脫困境，並且坦率地說，該組織現在擁有更多的帶寬，已經承擔並獲得了非常沉重的提升我們，我們將進行積極的投資組合管理，著眼於維持我們的投資級評級。因此，開始扭轉局面並知道我們在去槓桿化資產負債表、改善財務業績方面所做的所有努力實際上開始取得成效，這感覺很好。

Our next question comes from Jeff Johnson with Baird.

我們的下一個問題來自 Jeff Johnson 和 Baird。

Maybe, going back to Travis' question. Suky, just on gross margins, I think you're clear on the 50 basis points that's being capitalized and will come out next year. I think the way Travis raised it and kind of I was hoping to hear an answer to was are there offsets to that? Or should we just assume that, that 50 basis points that comes out next year is kind of how we should think, conceptually, about gross margin being down 50 basis points next year then?

也許，回到特拉維斯的問題。 Suky，就毛利率而言，我認為你很清楚正在資本化並將在明年公佈的 50 個基點。我認為 Travis 提出它的方式以及我希望聽到的答案是有抵消嗎？或者我們是否應該假設，明年出現的 50 個基點是我們應該如何從概念上考慮明年毛利率下降 50 個基點？

Yes. The team is actively looking and always looks at offset to any headwinds, whether current year, future years, et cetera. So I think it's too early to tell exactly what next year's gross margin will look like, but all things being equal, we've got that added headwind. The team is looking at, both from a supply chain standpoint, more faster structural changes across our plant footprint. We're looking at potential procurement and category savings through procurement to potentially offset those headwinds.

是的。該團隊正在積極尋找並始終著眼於抵消任何不利因素，無論是今年、未來幾年等等。因此，我認為現在準確判斷明年的毛利率會是什麼樣子還為時過早，但在所有條件相同的情況下，我們遇到了更大的阻力。從供應鏈的角度來看，該團隊正在考慮在我們的工廠足跡中進行更快的結構變化。我們正在通過採購尋找潛在的採購和類別節省，以抵消這些不利因素。

And I think you heard about Ivan talking about price. We're making some nice, I think, durable headway into improving our price discipline and our price performance. So we're going to continue to actively look for some offsets to that headwind. But right now, it's just too early to tell to say exactly what that 50 basis points ultimately translates to in 2023.

我想你聽說過 Ivan 談論價格。我認為，我們在改善價格紀律和價格表現方面取得了一些不錯的持久進展。因此，我們將繼續積極尋找抵消這種不利因素的方法。但現在，要確切地說出這 50 個基點最終在 2023 年意味著什麼還為時過早。

Yes. Understood. And then I think you guys are pretty clear on kind of the R&D spending, things like that, but where are we on a recovery and spend on things like conference attendance, stock training, corporate travel, things like that? Are we at a level now that is kind of back to normalized and just kind of grow off that? Or is there kind of a recapture that still has to happen there?

是的。明白了。然後我認為你們對研發支出的種類非常清楚，諸如此類，但是我們在復蘇和支出諸如會議出席、股票培訓、公司旅行等方面的支出在哪裡？我們現在是否處於某種回歸正常化的水平，並且只是從中成長？還是那裡仍然需要重新奪回？

I would say we've definitely increased since 2021. And obviously, since the depths of the pandemic, I think there's likely a little bit more room to go to bring back spending as we continue to see top line performance improved throughout the year. So -- and especially in the backdrop of the new product launches that we've got coming up, we want to make sure that we're investing appropriately from a commercial perspective to make sure that those launches are successful. I don't know, Ivan, if you want to say anything else there, but I guess the key thing you did -- as we'd expect to see a modest increase as we move forward.

我想說自 2021 年以來我們肯定有所增加。而且顯然，自大流行病最嚴重以來，我認為隨著我們繼續看到全年收入表現有所改善，我們可能還有更多空間來恢復支出。因此 - 特別是在我們即將推出的新產品發布的背景下，我們希望確保我們從商業角度進行適當投資，以確保這些發布取得成功。伊万，我不知道你是否想在那裡說些什麼，但我猜你所做的關鍵事情——我們希望隨著我們的前進看到適度的增長。

Let me very quickly add here, Jeff. I will tell you that the fact that the Vitality Index is 2x what it was 3 years ago, tells you that we have any slowdown from an R&D perspective. Within R&D, as you know, you got 2 components, which is sustaining engineering and then new product introductions. And the number of new product introductions in '21 and '22 is dramatically different than in past years. And as we get into '23 and '24 is even higher.

傑夫，讓我快速補充一下。我會告訴你，活力指數是 3 年前的 2 倍這一事實告訴你，從研發的角度來看，我們有任何放緩。如您所知，在研發中，您有 2 個組成部分，即持續工程和新產品引入。 21 年和 22 年推出的新產品數量與往年有很大不同。隨著我們進入 23 年和 24 年，甚至更高。

So definitely, no cuts when it comes to true innovation. And then relative to Med, that's another area that we try not to cut. Might have done adjustments throughout the pandemic, but I will tell you, we are full force globally when it comes to Med. So R&D and the right components R&D are Med, we remain sacred cows here from an investment standpoint. Thanks, Jeff.

因此，在真正的創新方面，絕對不會削減。然後相對於 Med，這是我們盡量不削減的另一個領域。可能在整個大流行期間都進行了調整，但我會告訴你，在 Med 方面，我們在全球範圍內全力以赴。所以研發和正確的組件研發是醫學，從投資的角度來看，我們仍然是這裡的聖牛。謝謝，傑夫。

Our next question comes from Shagun Singh with RBC.

我們的下一個問題來自 RBC 的 Shagun Singh。

So your Q1 ex FX revenue results in 2022 guidance implies lower quarterly growth for the balance of the year. So what's assumed in your guidance beyond Q1? How should we think about the cadence of it? Perhaps, you can touch on both revenue and EPS. Any color on Q2 will be helpful. And then, just as a follow-up on portfolio management, how are you thinking about your diversification strategy that you previously alluded to? It seems like a lot of these procedures, at least on the recon side are coming in from the ASC? So any color there would be helpful.

因此，您的 2022 年第一季度外匯收入指導結果意味著今年剩餘時間的季度增長較低。那麼，您在 Q1 之後的指導中假設了什麼？我們應該如何看待節奏呢？或許，您可以同時談及收入和每股收益。 Q2 上的任何顏色都會有所幫助。然後，作為投資組合管理的後續行動，您如何看待您之前提到的多元化戰略？似乎有很多這樣的程序，至少在偵察方面是來自 ASC 的？所以那裡的任何顏色都會有所幫助。

Suky, why don't you start with the cadence of growth? As much color you want to provide there? Obviously, we're not providing quarterly guidance, but you can get more color there, and then, I'll talk about the diversification.

Suky，你為什麼不從成長的節奏開始呢？你想在那裡提供多少顏色？顯然，我們不提供季度指導，但你可以在那裡獲得更多的顏色，然後，我會談談多元化。

Yes. So you're right, the forward-looking, based on our increase in our guidance range on ex FX, the midpoint now being at 3% versus the former at flat year-over-year. But given our first quarter would suggest lower ex FX growth rates for the remainder of the year. And that's primarily due to, as we previously discussed, much tougher comps as we move through the rest of the year.

是的。所以你是對的，前瞻性的，基於我們對 ex FX 的指導範圍的增加，中點現在為 3%，而前者同比持平。但鑑於我們的第一季度將表明今年剩餘時間的除匯率增長率較低。正如我們之前所討論的那樣，這主要是由於我們在今年餘下的時間裡進行了更嚴格的比賽。

The first quarter of this year, we were, of course, comparing against the first quarter of 2021, which had a very, very deep COVID impact. And so it wasn't unexpected that you'd see a much better Q1 than the rest of the year. So it's really comp-related on the rest of the year as to why that growth rate is lower than the first quarter.

當然，我們將今年第一季度與 2021 年第一季度進行了比較，後者產生了非常非常深遠的 COVID 影響。因此，您會看到比今年餘下時間好得多的第一季度並不意外。因此，在今年餘下的時間裡，為什麼增長率低於第一季度，這確實與 comp 相關。

As we think about cadence of revenue growth, as we move forward, we would expect -- we already talked about second quarter being in the low single digits on an ex FX basis. And the fourth quarter, based on normal seasonality, we would expect the second quarter to be stronger than the third quarter and then, of course, the fourth quarter to be the strongest quarter of the remainder of the year, very consistent with our former seasonality that you saw last year and prior to the pandemic in 2019. And we would also expect earnings to follow that same suit and as revenue gets stronger, so we'll be operating margin. So earnings are expected follow in that same cadence sized revenue.

當我們考慮收入增長的節奏時，隨著我們前進，我們預計 - 我們已經談到第二季度在外匯基礎上處於低個位數。而第四季度，根據正常的季節性，我們預計第二季度將強於第三季度，當然，第四季度將是今年剩餘時間中最強勁的一個季度，這與我們之前的季節性非常一致你在去年和 2019 年大流行之前看到了這一點。我們也預計收益會遵循同樣的規則，隨著收入的增加，我們將實現營業利潤率。因此，預計收入將遵循相同節奏大小的收入。

Great. And on the concept of diversification, when we think about active portfolio management, it's definitely still there. Clearly, we want to make sure that we're diversifying our business. And we think about it really in 3 ways. It's not just product segment diversification. Clearly, that's an area of concentration for us because there are faster growth categories that we play in that we want to build scale in.

偉大的。關於多元化的概念，當我們考慮積極的投資組合管理時，它肯定仍然存在。顯然，我們希望確保我們的業務多元化。我們實際上從 3 種方式考慮它。這不僅僅是產品細分多元化。顯然，這對我們來說是一個集中的領域，因為我們有一些增長更快的類別，我們希望在這些類別中建立規模。

But also, geographic expansion to make sure that we're taking advantage of fast growth areas in the world. And then setting, see you referenced ASC, that's an attractive setting. We've actually already acquired areas to build our scale in that setting, and we build commercial infrastructure to pursue ASC as well. So we look at it, for sure, in diversification to drive weighted average market growth, but we don't just look at it to be a product, not just by geography, not just by setting, but all 3 of those.

而且，地理擴張以確保我們正在利用世界上快速增長的地區。然後設置，看到你引用了 ASC，這是一個有吸引力的設置。實際上，我們已經收購了一些區域以在該環境中擴大規模，並且我們還建立了商業基礎設施以追求 ASC。因此，我們肯定會通過多元化來推動加權平均市場增長，但我們不僅僅將其視為一種產品，不僅僅是按地域，不僅僅是按設置，而是所有這三個方面。

Our next question comes from Drew Ranieri with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Drew Ranieri。

Just on your S.E.T. business for a moment. I appreciate that it lagged in the first quarter. But just trying to get a better sense of how that progresses through the rest of the year. I think you mentioned in your prepared remarks that there are some new products coming later this year, but maybe, go into a little bit more detail there. Just how are you thinking about your S.E.T. market or S.E.T. growth from a business perspective?

就在你的 S.E.T.業務片刻。我很欣賞它在第一季度落後。但只是想更好地了解今年餘下時間的進展情況。我想你在準備好的評論中提到今年晚些時候將推出一些新產品，但也許可以在那裡詳細介紹一下。你如何看待你的 S.E.T.市場或 S.E.T.從業務角度看增長？

Yes. Maybe, just a quick top line and then, Ivan, maybe you could speak to some of the things you're seeing in S.E.T. First and foremost, it is an area that we're very interested in. Not all the subsegments of S.E.T. are creating equal for us. For certain categories that we're investing more heavily in, because they're more attractive. We think we've got a better chance to win. And quite frankly, we really do believe that we've got scale that we can continue to move forward. So not all equal, but certainly an area of overall concentration for us.

是的。也許，只是一個快速的頂線，然後，伊万，也許你可以談談你在 S.E.T 中看到的一些事情。首先，這是一個我們非常感興趣的領域。並非 S.E.T. 的所有子細分市場。正在為我們創造平等。對於我們正在加大投資的某些類別，因為它們更具吸引力。我們認為我們有更好的獲勝機會。坦率地說，我們確實相信我們已經擁有了可以繼續前進的規模。因此，並非所有人都平等，但對我們來說肯定是一個整體集中的領域。

I would say that you're going to continue to see some pressure in the next couple of quarters. A lot of that comes from the fact that we still have pressure in VBP and trauma. And then, I think as you get to the end of the year, particularly, with some of those new products being launched, you might have an opportunity to see some of that move in the right direction. But just make no mistake, S.E.T. is an important area for us. We put commercial infrastructure in place. We have acquired technologies in the space. We continue to innovate in the space, and we will continue to focus in S.E.T.

我會說你將在接下來的幾個季度繼續看到一些壓力。其中很大一部分來自於我們仍然面臨 VBP 和創傷的壓力這一事實。然後，我認為當你到今年年底時，特別是隨著其中一些新產品的推出，你可能有機會看到其中一些朝著正確的方向發展。但別搞錯了，S.E.T.對我們來說是一個重要的領域。我們建立了商業基礎設施。我們已經獲得了該領域的技術。我們在空間上不斷創新，我們將繼續專注於S.E.T.

I don't know if you had anything else, Ivan?

我不知道你還有沒有別的事，伊万？

Just maybe, just take a couple of quick things here, Drew. So in the category, as I mentioned earlier, sports is doing very well. The acquisition and integration of Relign continues to go very nicely here in the U.S. and in Europe. We've seen an increase in penetration on Signature ONE. We are now, integrated in shoulder with mymobility, which is the integration of ZBH components into the shoulder platform.

也許，在這裡做幾件事，Drew。所以在類別中，正如我之前提到的，體育運動做得很好。 Relign 的收購和整合在美國和歐洲繼續進行得非常順利。我們已經看到 Signature ONE 的滲透率有所提高。我們現在，與 mymobility 集成在肩膀上，這是將 ZBH 組件集成到肩膀平台中。

Comprehensive in shoulder is growing in the strong teams, globally. So sports and upper extremities have done very well. CMFT, the integration of A&E is also going very well, continue to gain share on with trauma, state closure, where we have some headwinds, as was referenced by Suky in the prepared remarks is with trauma, primarily because of the headwinds in APAC, but also again, the U.S. and timing with some contracts. But overall, the category with the exclusion of trauma right now is going really, really well. And as I mentioned in a different form, we got more product launches in this segment in 2022, at the end of 2020 and in 2023 that we have had since 2015, 2016. So the innovation story there as well. So things are right on track.

在全球範圍內，綜合性強隊正在成長。所以運動和上肢都做得很好。 CMFT，A&E 的整合也進展順利，繼續在創傷、狀態關閉方面獲得份額，我們有一些逆風，正如 Suky 在準備好的評論中提到的那樣，創傷主要是因為亞太地區的逆風，但同樣，美國和一些合同的時機。但總的來說，排除創傷的類別目前進展得非常非常好。正如我以不同的形式提到的那樣，我們在 2022 年、2020 年底和 2023 年推出了自 2015 年和 2016 年以來的更多產品。因此，創新故事也在那裡。所以事情正在步入正軌。

Got it. And then just on Robotics. I think I heard you mention that there was -- it was a stronger quarter on placements than capital. But can you just talk about whether you expect that trend to continue through 2022? What drives it is just the hospital spending environment? Or are you doing a new sales strategy with how to place Robotics?

知道了。然後只是關於機器人技術。我想我聽到你提到過——這是一個比資本更強勁的季度。但您能否談談您是否預計這種趨勢會持續到 2022 年？驅動它的僅僅是醫院的支出環境嗎？或者您正在製定新的銷售策略以及如何放置機器人？

Yes, absolutely. Thanks. So it's very fluid. It's very customer centric. We get the option of the placement. We obviously get the option of selling the ROSA and then something that we do a hybrid. In 2021, we did more sales than we anticipated, given some of the macro dynamics. As we enter 2022, we see an opportunity for placement that delivers better financial returns, we doing more than that. That said, we still are selling robots. And as I answered earlier, we've not seen any clear headwind today. The capital is not available for those robots, both in the hospital setting and in the ASC.

是的，一點沒錯。謝謝。所以它非常流暢。它非常以客戶為中心。我們得到了放置的選項。我們顯然可以選擇出售 ROSA，然後再做一些混合動力車。考慮到一些宏觀動態，我們在 2021 年的銷售額超出了預期。當我們進入 2022 年時，我們看到了一個可以帶來更好財務回報的安置機會，我們所做的不止於此。也就是說，我們仍在銷售機器人。正如我之前回答的那樣，我們今天沒有看到任何明顯的逆風。在醫院環境和 ASC 中，這些機器人都沒有資金可用。

Our next question comes from Matthew O'Brien with Piper Sandler.

我們的下一個問題來自 Matthew O'Brien 和 Piper Sandler。

Bryan, your comment on recovery, I thought was interesting. As we look at the market, as far as deferred procedures go, we come up with kind of $1 billion to $2 billion of deferred orthopedic revenue globally over the last couple of years. So if we get to maybe, 1/3 of that here in 2022, I know you can't get to all of it because of staffing headwinds. But given your market share position, can this be kind of 100 to 200 basis points of tailwind to the top line? Is that what you're trying to communicate this today as far as what kind of impact of the business we should expect this year from the backlog?

布萊恩，你對恢復的評論，我覺得很有趣。當我們審視市場時，就延期手術而言，我們在過去幾年中在全球範圍內提出了 10 億至 20 億美元的延期骨科收入。因此，如果我們可能在 2022 年達到其中的 1/3，我知道由於人員配備的不利因素，您無法全部完成。但考慮到你的市場份額地位，這會是頂線的 100 到 200 個基點的順風嗎？這就是您今天要傳達的內容，即我們今年應該從積壓中預期對業務產生什麼樣的影響？

Yes. So to be clear, the backlog, we still believe there's got to be a backlog. I mean, just the fact is there's been no fundamental shift in the disease state itself, and there has to be a backlog just given what's happened over the past couple of years. But what we're not trying to state right now given our guidance is that we expect a big part of that backlog or really, any of that backlog to influence our numbers.

是的。所以要明確一點，積壓，我們仍然認為必須有積壓。我的意思是，事實是疾病狀態本身沒有發生根本性的轉變，鑑於過去幾年發生的事情，必須有積壓。但是，根據我們的指導，我們現在不想說明的是，我們預計積壓的很大一部分，或者實際上，任何積壓都會影響我們的數字。

So we're just saying that we believe, as we get to the back half of the year, we're going to get to a normal environment not making assumptions about capitalizing or benefiting from backlog. We do believe at some point, it has to come through. But we believe at this point, it's not going to be some kind of a massive impact it comes quickly. You're just going to have capacity issues associated with that. We do believe it should be a tailwind, but we think it's going to happen over years, not months or quarters, it would be our view on it. But just to be very clear, we're not expecting that as a part of our guidance right now in backlog recovery.

所以我們只是說我們相信，當我們進入今年下半年時，我們將進入一個正常的環境，而不是對資本化或從積壓中受益做出假設。我們確實相信在某個時候，它必須通過。但我們相信，在這一點上，它不會很快產生某種巨大的影響。您只會遇到與之相關的容量問題。我們確實認為這應該是一個順風，但我們認為它會在幾年內發生，而不是幾個月或幾個季度，這將是我們對此的看法。但需要明確的是，我們不希望將其作為我們目前積壓恢復指南的一部分。

Okay. And then maybe, Suky, because I know you monitor this pretty closely. On the ROSA side of things, you've been placing a lot of systems over the last couple of years. Maybe, talk a little bit about that pull-through revenue that you're going to get on the implant side and where we are in that cycle? Is it going to be a meaningful contributor to the Knee business here in '22? Or is it more kind of spread out over the next couple of years?

好的。然後也許，Suky，因為我知道你會非常密切地監控它。在 ROSA 方面，您在過去幾年中放置了很多系統。也許，談談你將在植入方面獲得的拉動收入以及我們在那個週期中的位置？它會在 22 年對膝關節業務做出有意義的貢獻嗎？還是在接下來的幾年裡會更加分散？

Yes, probably. So you probably better maybe, even have Ivan talk about that because, I mean, that realization of pull-through is now. I mean, it's happening. So maybe Ivan, maybe, you want to speak to that?

應該是。所以你可能更好，甚至讓 Ivan 談論這個，因為，我的意思是，現在實現了拉動。我的意思是，它正在發生。所以也許伊万，也許，你想談談這個？

Yes. Maybe, I won't give too many details because you never know who is listening, but the facts are that the penetration of cementless associated with ROSA is already in the teams. The pull-through and a large component of the new performance in Q1 is ROSA-related. The 600-plus robots that we place, roughly 50%, not 60% of those in the U.S., around half of those are in competitive accounts, we've seen meaningful revenue coming from those areas. And all of this is in the early innings. As we get into the additional launches on Hip, as we get into other modalities of ROSA knee, we got several innovation pipeline. We're going to continue to see a nice pull through there.

是的。也許，我不會提供太多細節，因為你永遠不知道誰在聽，但事實是，與 ROSA 相關的無水泥化已經在團隊中滲透。第一季度新業績的推動力和很大一部分與 ROSA 相關。我們放置的 600 多個機器人，大約占美國的 50%，而不是 60%，其中大約一半在競爭客戶中，我們已經看到來自這些領域的可觀收入。所有這一切都發生在早期的幾局中。當我們進入 Hip 的額外發佈時，當我們進入 ROSA 膝關節的其他模式時，我們有幾個創新管道。我們將繼續在那裡看到一個很好的拉力。

Cementless is one of the elements of a pull-through as its regular needs, and then obviously had the disposable and another component. ZBH, many, many accounts, gets contracted as part of the ROSA placement or sell, and that's another source of revenue. So again, we don't disclose the revenue with robots, but I will tell you that it's above expectations so far.

Cementless 是 pull-through 的元素之一，因為它的常規需求，然後顯然有一次性和另一個組件。 ZBH，很多很多賬戶，作為 ROSA 配售或出售的一部分簽訂合同，這是另一個收入來源。同樣，我們不會透露機器人的收入，但我會告訴你，到目前為止，它超出了預期。

And Suky, just sorry to step in here, but I figured that was more of a commercial discussion versus a financial one. Is that what you were going to have to -- do you want to change the answer here?

Suky，很抱歉介入這裡，但我認為這更像是商業討論，而不是財務討論。這就是您必須做的——您想在這裡更改答案嗎？

Lauren, I think we're ready for the next question in the queue.

勞倫，我想我們已經準備好迎接隊列中的下一個問題。

Our next question comes from Ryan Zimmerman with BTIG.

我們的下一個問題來自 BTIG 的 Ryan Zimmerman。

A couple for me. When you think about '23 and the Street's, I think, modeling about based 3% growth or so, and there's a lot of puts and takes this quarter. We've now shed Spine and Dental. Bryan, when you think about the business segments, I mean, and the growth rates, and then Shagun was kind of asked this from a pacing perspective, but I love your perspective from a business segment perspective. What's accretive to growth? What's dilutive to growth now when you look out on the business? And I think we know the answer to this, but it would be helpful, I think, to walk through where you think the growth rates could be for Knees and Hips versus S.E.T., et cetera. And then, my second question, I'll just ask it now. Suky, you may have spoken to this before, but just help us understand any dis-synergy assumptions post-spin on ZimVie?

對我來說一對。當你想到 23 世紀和華爾街時，我認為，基於 3% 左右的增長率建模，本季度有很多看跌期權。我們現在已經擺脫了 Spine 和 Dental。布萊恩，當你考慮業務部門和增長率時，Shagun 從節奏的角度被問到這個問題，但我喜歡你從業務部門的角度來看的觀點。什麼能促進增長？當您審視業務時，現在什麼會稀釋增長？我想我們知道這個問題的答案，但我認為，了解一下您認為膝蓋和臀部與 S.E.T. 等的增長率可能是多少會很有幫助。然後，我的第二個問題，我現在就問。 Suky，你之前可能已經談過這個，但只是幫助我們理解在 ZimVie 上旋轉後的任何不協同假設？

Okay. Yes. So I'll start and then obviously, we can transition to Suky. We're feeling really good, actually. The funny thing is when you think about Knee, most people think about it and rightly so, a pretty slow growth market. But in reality, there's more innovation entering the Knee space than we've ever seen before. We've got -- us, our competitors all focused on data, robotics and other forms of technology and share of wallet opportunities that we just haven't seen in the past.

好的。是的。所以我會開始，然後很明顯，我們可以過渡到 Suky。實際上，我們感覺非常好。有趣的是，當你想到 Knee 時，大多數人都會想到它，這是一個增長相當緩慢的市場。但實際上，進入膝關節領域的創新比我們以前見過的要多。我們有——我們，我們的競爭對手都專注於數據、機器人技術和其他形式的技術，並分享我們過去從未見過的錢包機會。

So even though one might view that as a relatively slow growth market, I actually see it as a real potential to see some acceleration in that market growth. I feel very confident that we can grow well in need because of all the shots on goal that we have. But I also think all boats will float here. I mean, really raise because you've got a lot of technology entering the space. And what we've seen is that it's being digested.

因此，儘管有人可能認為這是一個增長相對緩慢的市場，但我實際上認為它具有看到該市場增長加速的真正潛力。我非常有信心，由於我們擁有所有射門機會，我們可以在需要的情況下成長得很好。但我也認為所有的船都會漂浮在這裡。我的意思是，真正提高是因為你有很多技術進入這個領域。我們看到的是它正在被消化。

And so when I think about that, what are the implications, if you have the same number of procedures being done, but you're getting more share of wallet for every procedure, that drives up the entire space. And usually, when you bring innovation, as Ivan was alluding to earlier, when you have vitality in the space, it also drives better pricing stability. Because you sign longer-term contracts when somebody converts, for instance, to ROSA, they use will come right back and try to knock it down from a pricing perspective. So vitality, really does drive stability in pricing as well. So I think even in a space like that, that you might not believe would be attractive for overall revenue growth, I do believe it is sustainably an attractive area for us to invest and grow, and it's very profitable for us as well.

因此，當我考慮到這一點時，如果您完成的程序數量相同，但您為每個程序獲得更多的錢包份額，那麼這意味著什麼，這會增加整個空間。通常，當你帶來創新時，正如 Ivan 之前提到的那樣，當你在這個領域充滿活力時，它也會推動更好的定價穩定性。因為當有人轉換為例如 ROSA 時你簽署了長期合同，他們會立即回來並試圖從定價的角度將其降低。如此活力，確實也推動了價格的穩定。所以我認為，即使在這樣的領域，你可能不認為它對整體收入增長有吸引力，我確實相信它對我們的投資和增長來說是一個可持續的有吸引力的領域，而且它對我們來說也非常有利可圖。

S.E.T., it's pretty obvious. The categories of S.E.T. that we're concentrating on are attractive market growth that everybody knows. We believe we have an ability to win and we'll continue to scale in those areas. So pretty much across the board, when I look at large joints or S.E.T., I see them as attractive markets given the technology and innovation that we're bringing to bear. Suky?

S.E.T.，這很明顯。 S.E.T.的類別我們關注的是眾所周知的有吸引力的市場增長。我們相信我們有能力取勝，我們將繼續在這些領域擴大規模。所以幾乎全面，當我看大型關節或 S.E.T. 時，我認為它們是有吸引力的市場，因為我們正在帶來技術和創新。蘇基？

Yes. Ryan, on your question related to the spin, and I believe it was on dissynergy. So if you look at the recasted financials that we put out last week, you would see that overall, we see operating margin accretion of about 190 basis points from the transaction, which is a little bit better than our original expectations. That's a good thing, further validation of why we entered into that transaction. Inside of that, that would then imply and suggest about $40 million to $50 million of stranded costs remaining with Zimmer Biomet.

是的。 Ryan，關於你關於旋轉的問題，我相信這是關於不協調的。因此，如果您查看我們上週發布的重鑄財務數據，您會發現總體而言，我們看到交易的營業利潤率增加了約 190 個基點，這比我們最初的預期要好一些。這是一件好事，進一步驗證了我們進行該交易的原因。其中，這意味著並暗示 Zimmer Biomet 剩餘約 4000 萬至 5000 萬美元的擱淺成本。

I would say that we're already making progress against those stranded costs this year. We believe that there's more opportunity going into next year and we kind of just see that as part of our overall operating base as a potential source of opportunity for future efficiency.

我想說的是，我們今年已經在解決這些擱淺成本方面取得了進展。我們相信明年會有更多機會，我們只是將其視為我們整體運營基礎的一部分，作為未來效率的潛在機會來源。

So hopefully, that gets to your question on where we see and how we size the synergies. But make no mistake about it, we're going after those as aggressively as we can, while ensuring we don't disrupt the business and the recovery that we're starting to see.

因此，希望這能解決您關於我們在哪裡看到以及我們如何確定協同效應的問題。但請不要誤會，我們正在盡我們所能積極應對這些問題，同時確保我們不會破壞我們開始看到的業務和復蘇。

Thanks, Ryan. Lauren, do we have another question in the queue?

謝謝，瑞安。勞倫，我們還有其他問題嗎？

Our next question comes from Mike Matson with Needham & Company.

我們的下一個問題來自 Needham & Company 的 Mike Matson。

I wanted to ask one on Persona iQ. I know you made some brief comments on it, but maybe, you can give us a more detailed update on the launch. And then is this something that could be material to your Knee growth this year or next year in terms of adding 100-plus basis points in Knee growth?

我想在 Persona iQ 上問一個問題。我知道您對此發表了一些簡短的評論，但也許您可以向我們提供有關發布的更詳細的更新。然後，就增加 100 多個基點的膝關節增長而言，這對今年或明年的膝關節增長可能具有重要意義嗎？

Yes. So we're lucky to have Ivan on the call today. Because obviously, I'm close to this, he is extremely close to Persona iQ, not just what we have in Knee, but also, the future view of where we could take iQ and smart implants. But I would say we're in limited launching. As we've said, we're going to do this right. We're going to take our time. We're going to make sure that we learn -- what we need to learn is that when we move full launch, we launched well. But the early stages of this is very attractive.

是的。所以我們很幸運今天有 Ivan 接聽電話。因為很明顯，我很接近這一點，他非常接近 Persona iQ，不僅是我們在 Knee 擁有的東西，還有我們可以在何處採用 iQ 和智能植入物的未來觀點。但我會說我們的發射是有限的。正如我們所說，我們將正確地做到這一點。我們要慢慢來。我們將確保我們學習——我們需要學習的是，當我們全面啟動時，我們啟動得很好。但是這個的早期階段非常有吸引力。

And what's interesting about it, he's going to get into iQ itself, what's interesting about it is, it's also driving traction for the organization just because it's innovative. Even people, they are not ready for iQ yet. They're just saying, I'm not quite ready for it yet. They're looking at us differently. They're looking at Zimmer Biomet as an innovative player in the space, and most people want to be linked to an innovative player. Someone who is going to change the space. And so even those customers that didn't want to come to us for iQ, we're getting interest for them just to move to regular Persona. So it's almost got a halo effect because it's so unique in the marketplace.

有趣的是，他將進入 iQ 本身，有趣的是，它還因為它具有創新性而推動了組織的吸引力。即使是人，他們還沒有為 iQ 做好準備。他們只是說，我還沒有完全準備好。他們用不同的眼光看待我們。他們將 Zimmer Biomet 視為該領域的創新者，大多數人都希望與創新者建立聯繫。一個要改變空間的人。因此，即使是那些不想來找我們 iQ 的客戶，我們也對他們感興趣，只是為了轉移到普通的 Persona。所以它幾乎產生了光環效應，因為它在市場上是如此獨特。

But Ivan, I'll pass it to you.

但是伊万，我會把它傳給你。

Yes, absolutely, Mike. So first things first, we are on track with our limited market release. I'm not afraid of doing limited market releases. I like to do full force launches. But on this one, given the complexity and given the disruption in the market, we wanted to grow slowly and collect data. The -- I won't talk about the number of hospitals that have been onboarded, but it is significant. The patient pipeline is also significant, above expectations. We're collecting data across the board on mobility, range of motion. We got literally thousands of days of data track. The platform, Persona iQ is now fully integrated with mymobility and the rest of the ZBH ecosystem.

是的，當然，邁克。因此，首先，我們正在按計劃進行有限的市場發布。我不害怕做有限的市場發布。我喜歡全力發射。但在這方面，考慮到復雜性和市場的混亂，我們希望緩慢增長並收集數據。 - 我不會談論已經入職的醫院數量，但這很重要。患者管道也很重要，超出預期。我們正在全面收集有關移動性和運動範圍的數據。我們實際上獲得了數千天的數據跟踪。 Persona iQ 平台現已與 mymobility 和 ZBH 生態系統的其餘部分完全集成。

We have not seen any surprises when it comes to the qualified data that we're tracking, and most excitingly, we've got a technology road map that is going to go beyond Knees. So already got the design agreements for cementless, for shoulder and other categories.

當涉及到我們正在跟踪的合格數據時，我們沒有看到任何驚喜，最令人興奮的是，我們有一個超越 Knees 的技術路線圖。因此已經獲得了非骨水泥、肩部和其他類別的設計協議。

On the second part of your question, I'm not going to comment on whether it's material or not. I will tell you it is material for patients and then, the logics will prevail if it is material for patients. So, so far, so good, very excited. I look forward to the next step.

關於你問題的第二部分，我不打算評論它是否重要。我會告訴你它對病人很重要，然後，如果它對病人很重要，邏輯就會佔上風。所以，到目前為止，一切順利，非常興奮。我期待下一步。

Okay. And then just as a follow-up, I wanted to ask one on ASCs. So how do you feel you're positioned competitively in the ASC sector? And do you think your growth in ASCs was faster than your growth in hospitals? I mean, it seems like it is for the overall market, I guess, from what we've heard, but...

好的。然後作為後續行動，我想問一個關於 ASC 的問題。那麼，您如何看待自己在 ASC 領域的競爭優勢？你認為你在 ASCs 的增長速度快於你在醫院的增長速度嗎？我的意思是，從我們所聽到的情況來看，我想這似乎是針對整個市場的，但是......

Yes, I can take that one as well. So pleased with where we are with the ASC. Clearly, we started later than others in this environment, given our strong position in hospital settings in-patient, outpatient and whatnot, but we put a plan together around 4 key components, making sure we have the right portfolio, the right people, the right partnerships and the right contracts. On the product, we don't have time.

是的，我也可以拿那個。我們對 ASC 的現狀感到非常滿意。顯然，鑑於我們在住院、門診等醫院環境中的強大地位，我們在這種環境下起步較晚，但我們圍繞 4 個關鍵組成部分制定了一個計劃，確保我們擁有合適的產品組合、合適的人員、正確的伙伴關係和正確的合同。在產品上，我們沒有時間。

We fill the gaps on basic things like booms and lights, on visualization towers. We launched ASC-friendly innovation around robotics. We have increased our cementless penetration. So I think that the portfolio is second to none, especially now that we add sports med and whatnot. So strong on the product angle.

我們填補了諸如吊桿和燈光、可視化塔等基本事物的空白。我們圍繞機器人技術推出了對 ASC 友好的創新。我們增加了非水泥滲透率。所以我認為投資組合是首屈一指的，尤其是現在我們添加了運動醫學等等。產品角度如此強大。

On the people aspect, we didn't used to have a dedicated structure, dedicated commercial structure and contracting structure on the ASC setting. We had it now. It's fully dedicated. We've got a large group of people that each and every day get up and think only about the ASC.

在人員方面，我們過去在 ASC 環境中沒有專門的結構、專門的商業結構和承包結構。我們現在有了。它是完全專注的。我們有一大群人每天起床後只想著 ASC。

On the partnership angle, we got key relationships with key centers in the U.S. We're developing technology together that is applicable to the ASC. We're doing a ton of medical allocation together with these key centers. I mean, around contracting is night and day. We got an owner of all ASC contracts. We are very disciplined around the governance in those relationships, particularly in pricing. So I think the plan is working well. We're growing faster than expected. I'm not sure these days was growing faster than the others, but the ASC performance in Q1 was above our expectations. As we think about the rest of the year, I think we're in a good position to continue to grow.

在合作夥伴關係方面，我們與美國的主要中心建立了重要關係。我們正在共同開發適用於 ASC 的技術。我們正在與這些重點中心一起進行大量醫療分配。我的意思是，圍繞承包是白天和黑夜。我們得到了所有 ASC 合同的所有者。我們對這些關係的治理非常有紀律，尤其是在定價方面。所以我認為這個計劃運作良好。我們的增長速度超出預期。我不確定這些日子是否比其他日子增長得更快，但第一季度的 ASC 表現超出了我們的預期。當我們考慮今年剩下的時間時，我認為我們處於繼續增長的有利位置。

Thanks, Mike. Lauren, I think we have time for maybe, 1 or 2 final questions.

謝謝，邁克。勞倫，我想我們可能有時間提出 1 或 2 個最後的問題。

We'll take our next question from Robbie Marcus with JPMorgan.

我們將接受 JPMorgan 的羅比馬庫斯的下一個問題。

Great. Maybe, I could ask, the S.E.T. business was the slowest grower this quarter. It's 25% of sales and we don't get geographic breakout or segments there. I was hoping if you could walk us through sort of the different components and any geographic differences to point out? Just given that a lot of your competitors called out extremities and sports medicine as positives this quarter.

偉大的。也許，我可以問，S.E.T.業務是本季度增長最慢的。它佔銷售額的 25%，我們在那裡沒有地理突破或細分。我希望您能否帶我們了解一下不同的組成部分和任何地理差異，以便指出？鑑於本季度您的許多競爭對手都稱四肢和運動醫學為積極因素。

Yes. Maybe, also -- maybe let you answer some of this, Ivan, but the fact is we did have a pretty significant headwind. So when you look at the difference in regions, the most challenging region that we have was Asia Pacific. And a big part of that, as we all know, is the trauma VBP and the weight that, that's having on the overall segment. Outside of that, when we look inside of S.E.T., I would say the same thing. Our upper extremities business did very well. The innovation is helping us drive our performance there, but also the focus that we have.

是的。也許，也許讓你回答其中的一些問題，伊万，但事實是我們確實遇到了相當大的阻力。因此，當您查看地區差異時，我們所擁有的最具挑戰性的地區是亞太地區。眾所周知，其中很大一部分是創傷 VBP 和對整個細分市場的影響。除此之外，當我們審視 S.E.T. 的內部時，我會說同樣的話。我們的上肢業務做得很好。創新正在幫助我們推動我們在那裡的表現，同時也是我們所擁有的重點。

Sports did very well, as Ivan talked about before. And that happened both in U.S. and Europe. And when you think about our CMFT business, we continue to see traction there, not just because of the acquisitions that we've had, but also, because of the now what I would define as organic growth from those acquisitions. And again, the focus that we have commercially in CMFT. So those are kind of the bright spots that we have, and those are across all regions. But the big headwind for us is in trauma, a lot of that being in Asia Pacific.

正如伊万之前所說，運動做得很好。這在美國和歐洲都發生了。當你想到我們的 CMFT 業務時，我們繼續看到那裡的牽引力，不僅僅是因為我們已經進行的收購，而且因為現在我將這些收購定義為有機增長。再一次，我們在 CMFT 中的商業重點。所以這些是我們擁有的亮點，而且這些亮點遍布所有地區。但對我們來說，最大的阻力在於創傷，其中很大一部分發生在亞太地區。

I guess if I add to what Bryan is saying, I'll be saying the same thing with a different accent. So I won't extend myself, but excited about the dedicated channel in key geographies in Europe and the U.S., primarily. And the innovation that is coming later in the year and going into 2023. So sports is going well, extremities is going well. Again, some noise with trauma, but 2 or 3 key components are performing very nicely, and they allow to perform even on a faster basis. Thanks, Robbie.

我想如果我對 Bryan 所說的話進行補充，我會用不同的口音說同樣的話。所以我不會擴展自己，但主要是對歐洲和美國主要地區的專用頻道感到興奮。創新將在今年晚些時候到來，並持續到 2023 年。所以運動進展順利，四肢進展順利。同樣，一些噪音與外傷有關，但 2 或 3 個關鍵組件的性能非常好，它們甚至可以更快地運行。謝謝，羅比。

And are you guys willing to give any ex China growth rates for extremities and trauma?

你們願意給出四肢和外傷的任何除中國以外的增長率嗎？

I think you could probably just read from what Suky said, and I think it was in your prepared remarks, Suky. But 200 to 300 basis points of headwind is what you could look at in the quarter on the global business as a result of China.

我想你可能只讀了 Suky 所說的話，我想這是在你準備好的發言中，Suky。但 200 到 300 個基點的逆風是你可以在本季度看到的全球業務因中國而受到的影響。

Great. And maybe, just one quick follow-up for me. As you think about China, it's a country with the difficult pathways forward with the no COVID policy. I just want to make sure, are you assuming continued pressure from lockdowns through the rest of the year? Or are you assuming that it resolves in the near term?

偉大的。也許，對我來說只是一個快速的跟進。當你想到中國時，它是一個在沒有 COVID 政策的情況下前進道路艱難的國家。我只是想確定一下，您是否認為在今年餘下的時間裡封鎖會繼續帶來壓力？還是您假設它會在短期內解決？

Yes. The reason for the range that we have in the guidance is to make sure that we're accommodating risk or opportunity in places like China. So it's already calculated in the range that we have. What I would tell you is, again, we've been a little bit lucky there. Sometimes, it's okay to be lucky rather than always just good. But the fact is we've had that offset. We have had some pressure when we look at Shanghai lockdowns, but we've also had delays in VBP implementation, which helps us from a pricing standpoint, and they've offset each other.

是的。我們在指南中設定範圍的原因是為了確保我們在中國等地適應風險或機遇。所以它已經在我們擁有的範圍內進行了計算。我要告訴你的是，我們在那裡有點幸運。有時，幸運而不是總是好是可以的。但事實是我們已經抵消了。當我們考慮上海的封鎖時，我們有一些壓力，但我們也有 VBP 實施的延遲，這從定價的角度幫助我們，並且它們相互抵消。

And so at this point in time, even though the mix of how we're getting to the revenue and the bottom line that we assume we would get in China, it's changed, but the overall impact is about where we thought it would be. So I guess, all that to say, even if we see continued lockdowns, as long as we see continued delays in VBP, they seem to be offsetting each other.

因此，在這個時間點，儘管我們獲得收入的方式和我們假設我們在中國獲得的底線的組合已經改變，但總體影響與我們預期的差不多。所以我想，綜上所述，即使我們看到持續的封鎖，只要我們看到 VBP 持續延遲，它們似乎就會相互抵消。

Thanks, Robbie. I think we're at 9:30, so we probably need to wrap there, Lauren. Thank you so much. Bryan, I don't know if there's any closing remarks from you or any other members of the team. I'll pause there just to see if you'd like to make any comments before we wrap up on this end.

謝謝，羅比。我想我們現在是 9:30，所以我們可能需要到此結束，Lauren。太感謝了。布萊恩，我不知道你或團隊的任何其他成員是否有任何結束語。在我們結束之前，我會暫停一下，看看您是否願意發表任何評論。

No, I think the nice thing is we captured a lot of what we wanted to say via the question. The other fact is it was a good quarter. It feels good to have. And I think probably the most important thing, even though there's a lot of challenges that everyone is talking about right now that we're going to have to deal with it. We're going to have to manage through and I have confidence in the team can manage through those. The difference now is it's the same challenges for everybody, where we've been disproportionately impacted by COVID.

不，我認為好的事情是我們通過問題捕獲了很多我們想說的話。另一個事實是這是一個很好的季度。感覺很好。我認為可能是最重要的事情，儘管現在每個人都在談論我們將不得不應對的許多挑戰。我們將不得不渡過難關，我相信團隊可以渡過難關。現在的不同之處在於，每個人都面臨著同樣的挑戰，我們受到 COVID 的影響尤為嚴重。

And so if I had to select, I would take the challenges that we currently have in place and their impact to the business versus continued COVID impact. And so that's the positive for us. That's been kind of the light at the end of the tunnel that we've been waiting for, which is COVID receding. And I truly do believe as it does recede and it continues to recede, that the actual performance that we see in the business will begin to be reflected in the performance that you see in the business. So with that, we'll go ahead and end the call.

因此，如果我必須選擇，我會接受我們目前面臨的挑戰及其對業務的影響與持續的 COVID 影響。這對我們來說是積極的。這是我們一直在等待的隧道盡頭的曙光，也就是 COVID 正在消退。而且我確實相信，隨著它的消退並繼續消退，我們在業務中看到的實際績效將開始反映在您在業務中看到的績效中。因此，我們將繼續並結束通話。

Thanks, Bryan, and thanks, everyone, for joining. Of course, if you have any other questions, please feel free to reach out to the IR team at any point.

謝謝 Bryan，也謝謝大家的加入。當然，如果您有任何其他問題，請隨時聯繫 IR 團隊。

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

再次感謝您參加今天的電話會議。您現在可以斷開連接。