ZimVie (ZIMV) 24th Annual Needham Virtual Healthcare Conference summary

Market outlook and performance

• Guidance for 2025 is conservative in H1 with expected pickup in H2; Q1 and Q2 are historically consistent, Q3 slowest, Q4 strongest.

• Q1 patient traffic trends are similar to Q4, with minor headwinds from FX, a sunsetting manufacturing agreement, and one less selling day.

• Consumer weakness and high interest rates are expected to impact implant demand, but upper-end cases continue; delays are seen as temporary with historical bounce-backs.

• Implant market growth for the year is expected to be 0-3%, with long-term growth seen at 3-5% after a cyclical trough.

Tariffs and manufacturing strategy

• No tariffs are included in current guidance; exposure is limited due to manufacturing in the US and Spain.

• Flexibility exists to shift production between plants based on labor costs and tariff impacts.

• Recent moves include shifting Lights Out manufacturing to the US and labor-intensive work to Spain, improving profitability.

Portfolio and product strategy

• Focus remains on implants, biomaterials, and complementary software; expansion into new categories is considered only if aligned with current call points.

• New product launches, such as a molar implant and web-based RealGuide 6, are expected to drive growth and defend against competitors.

• Bundling strategies and entry into new geographic markets are being pursued, with inorganic opportunities considered if immediately accretive.