JP Morgan 2014 Healthcare Conference

Transcription

1 JP Morgan 2014 Healthcare Conference January 14, 2014 David Dvorak President and CEO Focus on Musculoskeletal Healthcare Leadership

2 Safe Harbor Statement Statements made during this presentation that are not historical facts are forward-looking statements within the meaning of Federal securities laws. Forward-looking statements include, but are not limited to, statements concerning Zimmer s future performance and financial results; plans, objectives and expectations with respect to products and technologies; industry trends, demographic trends, market size, market share and growth opportunities. These statements reflect management s current expectations and assumptions regarding future events and operating performance and involve a number of risks and uncertainties. Actual results could differ materially from those expressed in, or implied or projected by, the forward-looking statements. Factors that could cause actual results to differ materially from expectations are discussed in Zimmer s periodic reports filed with the Securities and Exchange Commission and in other important information Zimmer makes available on its website at in the Investor Relations section. Zimmer disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent otherwise required by Federal securities laws. 2

3 Value Creation Framework Growth: Leadership in Core Franchises Emerging Businesses and Markets Innovation Pipeline Operational Excellence: Target $400 Million in Savings by 2016 Source of Funding for Growth Expand Margins and Enhance ROIC Capital Allocation: Financial Discipline Strong Balance Sheet and Cash Generation Commitment to Returning Excess Cash Target 8 % to 12 % Annual EPS CAGR 3

4 Growth Execute on Key Strategic Product Launches Sustain Accelerated Pace of Innovation Focused Product and Technology Acquisitions Build upon Established Emerging Market Platform 4

5 523M 714M 969M 1,252M 1,487M Source: United Nations Population Division Musculoskeletal Global Growth Drivers World Population 65 & Older (Millions) 16.2% Global Demographic Trends Share of World Population 65 and Older 11.7% 14.2% Expanding Access to Healthcare in Emerging Markets 7.6% 9.3% Development of Clinically Relevant Devices, Instruments and Techniques Zimmer is Expanding Along the Continuum of Care and Into Musculoskeletal Adjacencies 5

6 Delivering Benefits to Patients and the Healthcare System Source: Journal of Bone & Joint Surgery, Volume 95-A, No. 16, Aug. 21, 2013 The Value of Joint Replacement in Treating Patients with Osteoarthritis, 6

7 Knees Persona The Personalized Knee System Gel-One Hyaluronic Acid iassist Knee, The Personalized Guidance System Zimmer Patient Specific Instruments NexGen Complete Knee Solution 7

8 Hips Vivacit-E Highly Crosslinked Polyethylene Continuum Acetabular System Maxera Cup Avenir Müller Stem 8

9 Extremities Tarsalis System 2.7 (NORMED) Sidus Stem-Free Shoulder Trabecular Metal Glenoid Trabecular Metal Reverse Shoulder Trabecular Metal Total Ankle 9

10 Surgical and Trauma PALACOS Bone Cement Transposal Fluid Management System Zimmer Natural Nail System Zimmer Universal Power System Plates and Screws 10

11 Spine and Dental Trabecular Metal Dental Implants Exopro Implants APEX Spine System 11

12 Operational Excellence Enhancing Global Quality and Compliance Systems Optimizing Manufacturing Assets and Workflows Reconfiguring Logistics and Inventory Management Delivering Leverage while Creating Funds for Investments 12

13 Capital Allocation Enhance Free Cash Flow Free Cash Flow Exert Discipline around M&A Return Excess Cash to Stockholders Commitment to a Cash Dividend Continue to use Share Repurchase Authorization to Enhance Leveraged Earnings 13

14 Value Creation Proof Points billion 14

15 Focus on Musculoskeletal Healthcare Leadership Execute on Key Product Launches and Sustain Pace of Innovation Build on Achieved Savings Momentum Invest with Discipline and Return Capital to Stockholders 15

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