ZimVie (ZIMV) UBS Global Healthcare Conference summary

Strategic repositioning and operational transformation

• Shifted focus to a pure-play dental business after divesting the spine segment and significantly reducing debt.

• Implemented a merit-based spending culture and streamlined operations, resulting in margin improvements despite a flat dental implant market.

• Monetized balance sheet assets post-spin to manage debt and optimize organizational structure.

• Continued focus on cost reduction, margin expansion, and performance culture development.

• Achieved leverage target below 3.25x and committed to 15%+ EBITDA margin by April 2025.

Product portfolio and differentiation

• Portfolio includes premium dental implants, biomaterials (second largest in the segment), and a robust digital platform.

• Digital offerings are web-based, enabling rapid innovation and workflow improvements for providers.

• Strong emphasis on comprehensive training, with 30-40% year-over-year growth in customer participation.

• Digital solutions like Implant Concierge streamline procedures, reduce back-office labor, and attract new users.

• Strategic partnerships with scanner providers (iTero, Medit) offer flexibility and address varying customer price sensitivities.

Market dynamics and growth outlook

• Dental implant market remains underpenetrated, with only 25% adoption, presenting significant growth potential.

• Economic headwinds (interest rates, consumer credit) have softened demand, especially for high-end procedures.

• Value implants consistently grow faster than premium, with local brands dominating outside the U.S.

• U.S. market accounts for about 60% of revenue, with strong performance in major markets like Japan, Spain, and France.

• Digital segment grew over 30% last quarter, driven by both new and existing users seeking workflow efficiency.