ZimVie Inc.

Good afternoon, and welcome to ZMV's fourth quarter and full year 2022 earnings conference call. Currently, all participants are on a listen-only mode. We will be facilitating question and answer session towards the end of today's call. As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Marissa Bych from Gilmartin Group for introductory disclosures.

Hi, and thank you all for joining today's call. Earlier today, Zimdy released financial results for the quarter and year ended December 31, 2022. A copy of the press release is available on the company's website, zimdy.com, as well as on sec.gov. Before we begin, I'd like to remind you that management will make comments during this call that 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 refer to the company's most recent periodic report filed with the SEC and subsequent SEC filings for a detailed discussion of these risks and uncertainties. In addition, the discussion on this call will include certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP financial measures are included within the earnings release and or the investor deck issued today found on the investor relations section of the company's website. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, March 1st, 2023. CIMBY disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. And with that, I will turn the call over to Vassa Jamali, President and Chief Executive Officer of CIMBY.

Thank you, Marissa. Good afternoon and thank you all for joining us. I'd like to kick off the call by providing an update on the significant progress we've made in our first year as an independent company before turning the call to Rich Heppensall, our Chief Financial Officer, to review our financial performance for the quarter and year-end of December 31, 2022. Understanding that we still have substantial work ahead of us, I'd like to take a moment to commend our internal teams who have demonstrated tremendous capacity, adaptability, and efficiency as we complete the steps to stand up our business post-spin and lay the foundation for future growth. We knew that turning this business around would take immense operational effort, fiscal discipline, and a commitment to product innovation and execution over the course of several years, not quarters, and that remains true today. I'm pleased that we've addressed and crossed hurdles in each of these areas already while implementing the right structure initiatives to create value over the three- to five-year post-spin timeline that we outlined a year ago. 2023 is the year we focus energy on the commercial side of the portfolio to be able to grow into 2024 and beyond. Our most critical imperative as we build for long-term success is the health of our innovation platform. Over the past year, we've made considerable progress actively reshaping our innovation portfolio to ensure that our growth plans into the future are supported by differentiated products that drive better clinical outcomes and workload benefits. In dental, we're thrilled with the launch of several new and next-generational products. 2022 was the first time in 10 years we launched a new dental implant line to the market, led by the introduction of our T3 Pro implant in June, alongside our ENCODE Emergence abutment, then by our next-generation TSX implant in November. We're seeing strong demand in the market for these implants with excellent feedback from adopters around stability, predictability, and ease of use. We're also excited to share that we just last week, we launched our RealGuide computer-aided designer CAD and full suite modules within our digital dentistry software platform. This offering allows physicians to complete detailed and sophisticated implant and tooth restoration procedures and create seamless workflow throughout the procedure. Our software platform is now the only offering in the market with implant planning and guide design within the same module as restorative care, including crown and denture design, allowing substantially greater efficiency for customers. These launches mark the beginning of the next wave of innovation in our dental portfolio, and we're really excited about our role in increasing the adoption of dental implants with these solutions. Our dental business is positioned very well to grow and generate cash flow for our business as a whole. Moving to spine, we're equally focused on refreshing our spine portfolio. For example, in 2022, we announced the launch of the Virage navigation system, which allows for the navigation of bone preparation instruments and polyaxial screws in the spine, and is compatible with commercially available navigation systems. This compatibility with third-party navigation systems supports our desire to be more active in the minimally invasive surgery, or MIS, procedures in an effort to improve overall patient outcome. Building on this launch, today we are very excited to announce a partnership and global development agreement with BrainLab for spine-enabling technologies to provide our customers and patients the deepest level of integration between Zimbi products and BrainLab's industry-leading portfolio of spine imaging, planning, navigation, and robotic-assisted solutions. Work is already underway to integrate our minimally invasive vital and barrage systems into BrainLab's innovative solutions, allowing us to bring differentiated technology in the operating room to enhance workflow and accuracy while reducing interoperative x-rays and radiation exposure. At the time of this spin, I announced that we would partner, rather than build, an enabling technology offering with an established leader in the space. And BrainLab fits exactly with our strategy to leverage broadly compatible solutions with an established footprint to drive greater pull-through across our spine portfolio. Shifting to another focus within our spine portfolio, the Tether, our differentiated non-fusion spinal device for the treatment of idiopathic scoliosis. As we have detailed in the past, we remain critically focused on driving therapy access for children who can benefit from this device. We received a major positive policy decision from Anthem in mid-2022, expanding coverage to 30-plus million lives. And today, I'm pleased to announce that we have also received a positive policy decision from Highmark, expanding coverage by another 4 million plus lives. The Tether is a great example of innovative piece of our portfolio that is making a significant difference in the lives of our patients. We are excited by this growth opportunity this technology offers us. Looking forward, we'll continue to innovate on and around our existing solutions while we rationalize opportunities that are not value creating and optimize our position in markets where we are positioned to win. We look forward to announcing our progress on the innovation front throughout the year. In addition to our focus on innovation, a significant portion of our energy in 2022 is directed towards many operational accomplishments since spin-off. We are pleased to successfully separate operations from our former parents who were biomet. As part of separation, we have established a world-class leadership team with the focus and experience to position the business for long-term growth and value creation. In our first year as a standalone company, the teams completed several major operational enhancements to accelerate our independence. On the IT side, we successfully completed three major ERP conversions, one for each commercial region that we operate in. Also, as part of exiting our TSA agreements, these are the transition agreements with the parent, we refreshed our core IT systems, moving over 950 servers to new data centers and transitioning over 200 applications to modern and largely cloud-based platforms. We've also focused on inventory and physical footprint. We've materially reduced inventory and plan to seize additional opportunity for inventory reduction in 2023. We also identified a significant amount of fixed cost waste in the organization. Over the past year, we have closed, reduced the footprint, or transformed five facilities worldwide. And as a derivative benefit of these efforts, we have improved our spine manufacturing fill rates from 65% to 95%. In summary, we've made measurable progress against our most vital operational goals to create a strong foundation from which Zimbi can grow. This brings me to a relevant note on our position in global markets, specifically an update on our operations in China. As part of rationalizing our brands and focusing on improving growth and profitability, we are now in the process of fully exiting the China market in spine and evaluating our position in dental following recent VBP decisions. We are confident that this is the best decision to optimize our focus in markets that can be both growth and margin accretive to ZMV over time. Before turning the call over to Rich to outline our financial performance, I want to once again underscore our immense progress and strong education on the operational and organizational goals over the year. While our financial performance has been impacted by separation dynamics and multiple challenging macroeconomic factors, we are establishing the pillars to support a growing, efficient, and profitable business over the next several years. We acknowledge that our top line and bottom line expectations for the year ahead do not reflect the progress we have made within the business in our first year, nor the long-term trajectory that we expect Zimbi to achieve. But we are committed to transforming and driving a better company that we stepped into last March, and we are confident that our plan is on track to revitalize Zimbi for future growth and create shareholder value while addressing real patient needs in the dental and spine markets. I'll now hand over the line to Rich.