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Press Release: Zimmer Biomet Announces Fourth -3-

· 02/05/2021 06:30
meredith.weissman@zimmerbiomet.com keri.mattox@zimmerbiomet.com Ezgi Yagci (617) 549-2443 ezgi.yagci@zimmerbiomet.com ZIMMER BIOMET HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS FOR THE THREE MONTHS ENDED DECEMBER 31, 2020 and 2019 (in millions, except per share amounts, unaudited) 2020 2019 Net Sales $2,085.3 $2,125.7 Cost of products sold, excluding intangible asset amortization 647.3 582.2 Intangible asset amortization 152.6 147.4 Research and development 100.0 121.1 Selling, general and administrative 893.9 882.2 Restructuring and other cost reduction initiatives 27.7 33.0 Quality remediation 15.0 19.3 Acquisition, integration and related 8.1 3.7 Operating expenses 1,844.6 1,788.9 Operating Profit 240.7 336.8 Other income (expense), net 8.0 4.8 Interest expense, net (53.1) (52.4) Earnings before income taxes 195.6 289.2 Benefit for income taxes (138.2) (32.2) Net Earnings 333.8 321.4 Less: Net earnings attributable to noncontrolling interest 0.1 0.7 Net Earnings of Zimmer Biomet Holdings, Inc. $333.7 $320.7 Earnings Per Common Share Basic $1.61 $1.56 Diluted $1.59 $1.54 Weighted Average Common Shares Outstanding Basic 207.4 205.8 Diluted 209.3 207.8 ZIMMER BIOMET HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS FOR THE YEARS ENDED DECEMBER 31, 2020 and 2019 (in millions, except per share amounts, unaudited) 2020 2019 Net Sales $7,024.5 $7,982.2 Cost of products sold, excluding intangible asset amortization 2,128.3 2,252.6 Intangible asset amortization 597.6 584.3 Research and development 372.0 449.3 Selling, general and administrative 3,177.8 3,343.8 Goodwill and intangible asset impairment 645.0 70.1 Restructuring and other cost reduction initiatives 116.9 50.0 Quality remediation 50.9 82.4 Acquisition, integration and related 23.8 12.2 Operating expenses 7,112.3 6,844.7 Operating (Loss) Profit (87.8) 1,137.5 Other income (expense), net 25.4 (4.8) Interest expense, net (212.0) (226.9) (Loss) earnings before income taxes (274.4) 905.8 Benefit for income taxes (137.0) (225.7) Net (Loss) Earnings (137.4) 1,131.5 Less: Net earnings (loss) attributable to noncontrolling interest 1.5 (0.1) Net (Loss) Earnings of Zimmer Biomet Holdings, Inc. $(138.9) $1,131.6 (Loss) Earnings Per Common Share Basic $(0.67) $5.52 Diluted $(0.67) $5.47 Weighted Average Common Shares Outstanding Basic 207.0 205.1 Diluted 207.0 206.7 ZIMMER BIOMET HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) December 31, December 31, 2020 2019 Assets Cash and cash equivalents $ 802.1 $ 617.9 Receivables, net 1,452.7 1,363.9 Inventories 2,450.7 2,385.0 Other current assets 377.8 357.1 Total current assets 5,083.3 4,723.9 Property, plant and equipment, net 2,047.7 2,077.4 Goodwill 9,261.8 9,599.7 Intangible assets, net 7,055.5 7,257.6 Other assets 969.4 980.1 Total Assets $ 24,417.7 $ 24,638.7 Liabilities and Stockholders' Equity Current liabilities $ 2,056.9 $ 1,941.5 Current portion of long-term debt 500.0 1,500.0 Other long-term liabilities 2,034.9 2,083.0 Long-term debt 7,626.5 6,721.4 Stockholders' equity 12,199.4 12,392.8 Total Liabilities and Stockholders' Equity $ 24,417.7 $ 24,638.7 ZIMMER BIOMET HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 and 2019 (in millions, unaudited) 2020 2019 Cash flows provided by (used in) operating activities Net (loss) earnings $(137.4) $1,131.5 Depreciation and amortization 1,032.7 1,006.1 Share-based compensation 79.7 84.3 Goodwill and intangible asset impairment 645.0 70.1 Changes in operating assets and liabilities, net of acquired assets and liabilities Income taxes (279.1) (427.3) Receivables (70.0) (93.8) Inventories (40.8) (125.2) Accounts payable and accrued expenses (95.1) (42.0) Other assets and liabilities 69.5 (17.9) Net cash provided by operating activities (1) 1,204.5 1,585.8 Cash flows provided by (used in) investing activities Additions to instruments (291.7) (315.9) Additions to other property, plant and equipment (117.5) (207.1) Net investment hedge settlements 53.5 48.1 Acquisition of intellectual property rights (0.4) (197.6) Business combination investments, net of acquired cash (235.5) (37.1) Investments in other assets (22.2) (19.7) Net cash used in investing activities (613.8) (729.3) Cash flows provided by (used in) financing activities Proceeds from senior notes 1,497.1 549.2 Redemption of senior notes (1,750.0) (500.0) Proceeds from term loans - 200.0 Payments on term loans - (960.0) Net payments on other debt - (5.3) Dividends paid to stockholders (198.5) (196.7) Proceeds from employee stock compensation plans 129.8 158.2 Net cash flows from unremitted collections from factoring programs (54.6) (12.2) Business combination contingent consideration payments (15.0) (2.9) Debt issuance costs (22.3) (3.5) Other financing activities (8.3) (6.7) Net cash used in financing activities (421.8) (779.9) Effect of exchange rates on cash and cash equivalents 15.3 (1.5) Increase in cash and cash equivalents 184.2 75.1 Cash and cash equivalents, beginning of period 617.9 542.8 Cash and cash equivalents, end of period $802.1 $617.9 (1) 2019 reflects approximately $168 million paid related to a patent litigation matter ZIMMER BIOMET HOLDINGS, INC. NET SALES BY GEOGRAPHY FOR THE THREE MONTHS ENDED DECEMBER 31, 2020 and 2019 (in millions, unaudited) Three Months Ended December 31, % Inc / Volume Foreign 2020 2019 (Dec) / Mix Price Exchange Americas $1,283.9 $1,288.2 (0.3) % 3.5 % (3.8) % - % EMEA 408.3 470.4 (13.2) (17.6) 0.1 4.3 Asia Pacific 393.1 367.1 7.1 4.4 (2.4) 5.1 Total $2,085.3 $2,125.7 (1.9) % (1.0) % (2.7) % 1.8 % ZIMMER BIOMET HOLDINGS, INC. NET SALES BY PRODUCT CATEGORY FOR THE THREE MONTHS ENDED DECEMBER 31, 2020 and 2019 (in millions, unaudited) Three Months Ended December 31, % Inc / Volume Foreign 2020 2019 (Dec) / Mix Price Exchange Knees $737.1 $760.6 (3.1) % (1.6) % (3.2) % 1.7 % Hips 504.1 510.4 (1.3) (0.4) (3.0) 2.1 S.E.T 375.9 381.8 (1.5) (0.9) (2.4) 1.8 Dental, Spine & CMFT 314.0 306.1 2.6 2.1 (1.3) 1.8 Other 154.2 166.8 (7.5) (6.7) (2.6) 1.8

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February 05, 2021 06:30 ET (11:30 GMT)