35th Annual J.P.

Morgan
Healthcare Conference
January 10, 2017

Zimmer Biomet Holdings, Inc.

Presenter:
David Dvorak
President and CEOi

Cautionary Statement Regarding Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of forward-looking terms such as may, will, expects, believes, anticipates, plans, estimates,
projects, assumes, guides, targets, forecasts, sees and seeks or the negative of such terms or other variations on such terms or comparable
terminology. All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements. Such statements are
based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties that could cause actual outcomes and results
to differ materially. These risks and uncertainties include, but are not limited to: the possibility that the anticipated synergies and other benefits from mergers and
acquisitions will not be realized, or will not be realized within the expected time periods; the risks and uncertainties related to our ability to successfully integrate the
operations, products, employees and distributors of acquired companies; the effect of the potential disruption of managements attention from ongoing business
operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with customers, vendors and
lenders and on our operating results and businesses generally; Biomets compliance with its Deferred Prosecution Agreement, as extended; the outcome of
government investigations; price and product competition; the success of our quality and operational excellence initiatives; changes in customer demand for our
products and services caused by demographic changes or other factors; the impact of healthcare reform measures; reductions in reimbursement levels by thirdparty payors and cost containment efforts of healthcare purchasing organizations; dependence on new product development, technological advances and
innovation; shifts in the product category or regional sales mix of our products and services; supply and prices of raw materials and products; control of costs and
expenses; the ability to obtain and maintain adequate intellectual property protection; the ability to form and implement alliances; challenges relating to changes in
and compliance with governmental laws and regulations, including regulations of the U.S. Food and Drug Administration (the FDA) and foreign government
regulators, such as more stringent requirements for regulatory clearance of products; the ability to remediate matters identified in any inspectional observations or
warning letters issued by the FDA, while continuing to satisfy the demand for our products; changes in tax obligations arising from tax reform measures or
examinations by tax authorities; product liability and intellectual property litigation losses; the ability to retain the independent agents and distributors who market
our products; dependence on a limited number of suppliers for key raw materials and outsourced activities; changes in general industry and market conditions,
including domestic and international growth rates and general domestic and international economic conditions, including interest rate and currency exchange rate
fluctuations; and the impact of the ongoing economic uncertainty affecting countries in the Euro zone on the ability to collect accounts receivable in affected
countries. For a further list and description of such risks and uncertainties, see our reports filed with the U.S. Securities and Exchange Commission. Copies of
these filings, as well as subsequent filings, are available online at www.sec.gov, www.zimmerbiomet.com or on request from us. We disclaim any intention or
obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be set forth in our
periodic reports. Readers of this presentation are cautioned not to place undue reliance on these forward-looking statements, since, while management believes
the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to
be accurate. This cautionary statement is applicable to all forward-looking statements contained in this presentation.
Note on Non-GAAP Financial Measures
In this document, we present adjusted operating profit margin, which is considered a non-GAAP financial measure under U.S. Securities and Exchange
Commission rules. This non-GAAP financial measure supplements our GAAP disclosures and should not be considered as a substitute for, or superior to,
operating profit margin, the most directly comparable GAAP financial measure. Reconciliations of operating profit margin to adjusted operating profit margin for the
periods presented are posted to the investor relations section of our website at www.zimmerbiomet.com.

Zimmer Biomet: A Profile of Leadership

2016 Sales by Category(1)
S.E.T.
21%

Spine &
CMF
9%

Dental
6%
Other
4%

Hips
24%

Knees
36%

Addressing unmet needs across

continuum and episode of care

Broad array of musculoskeletal

solutions, technologies and services

2016 Sales by Geography(1)

EMEA
23%

Asia
Pacific
15%

90 year heritage of proven clinical

performance

Globally diverse
Americas
62%
(1) Based on preliminary full year revenue for 2016

*S.E.T. = Surgical, Sports Medicine, Foot & Ankle, Extremities and Trauma

Leading Musculoskeletal Portfolio

Knee & Hip

Global market share leader

S.E.T.

Diverse and fast growing category

Spine &
CMF

Innovative products and solutions

Dental

Complete implant and regenerative portfolio

*S.E.T. = Surgical, Sports Medicine, Foot & Ankle, Extremities and Trauma

Guided by our Value Creation Framework

Opportunity to deliver 4% + revenue growth:

Growth

Innovative new products

Specialized sales forces
Expanding emerging markets presence

Sustainable Operating Margin expansion:

Operational
Excellence

Disciplined
Capital
Allocation

Leverage scale
Manufacturing and quality system optimization
Realize net synergies

Significant Free Cash Flow rates:

Value creating M&A
Achievement of deleveraging goals
Returning value to stockholders
5

History of Growth
Adj. EPS

Revenue ($MM)
$7.95

$10,000

$8.00

$7,684

Growth Drivers

$8,000
$6.00
$4.80

Focus on innovative new

products

$6,000
$4.00

$4,452
$4,000

$2.00
$2,000

Internal and external

portfolio development
Commercial and
operational excellence
Leveraged earnings

$0

$0.00

2011

2012
Revenue

2013

2014

2015

2016

Adjusted EPS

(1) As Adjusted and Revised. 2011 2012 as adjusted and revised EPS includes intangible asset amortization expense. 2013 2015 as
adjusted and revised EPS excludes intangible asset amortization. Reconciliations of these non-GAAP financial measures to the most directly
comparable GAAP measure are posted to our website: http://investor.zimmerbiomet.com
(2) 2016 financials are preliminary as described in press release dated January 10, 2017

Drivers of Sustainable Market Growth

7.6%

1,487M

market of ~$50B
9.3%

Utilization at a fraction of
developed market rates
2010

2020

2030

2040

2050

Source: United Nations Population Division

Expanding access to healthcare

in emerging markets

1,252M

Penetration opportunity in
developed markets

ShareProcedure
of World
Volume 14.2%
Growing
global
Population 65 and
Older
musculoskeletal
11.7%
969M

Supportive utilization trends

16.2%

714M

Increasing percentage of
population 65 and older

World Population
65 and Older

523M

Favorable global demographics

Investing for Future Growth

Transforming Revenue Mix

Strengthening presence in
faster-growing product
categories

Differentiated R&D
Developing meaningful
innovation
50 new products and solutions
launched in 2016

Specialized Sales Channel

Leveraging scale and
specialized reps to
accelerate growth

Disciplined M&A
Delivering value with
strategic acquisitions
Free cash flow generation
creates ongoing opportunities

Leading in Innovation

Joint
Preservation

Motion
Preservation

Personalized
Procedures

Innovating to
Minimize Complications

Reduce Surgery Times

Improve Efficiencies
Optimize Outcomes
Enhance Patient Experiences

Diagnostics &
Infection

Zimmer Biomet Signature Solutions

Value Proposition

IMPROVED
QUALITY
OUTCOMES

MORE
EFFICIENT
CARE

INCREASED
PATIENT
VOLUME

VALUE

The ONLY comprehensive offering of innovative clinical services and

technologies that addresses EVERY aspect of the VALUE equation

10

M&A Strengthens Portfolio

Musculoskeletal Health
Diversification

Platform Technologies

Hips
25%

Knee
36%

17%

Following the transformative Biomet merger, the Company has

deployed $1.5 B on 8 M&A transactions

11

Committed to Operational Excellence

Delivering Biomet Synergies
Achieved $225 M in net EBIT
synergies in fiscal 2016

Operational Efficiencies

Disciplined operating
expense and working
capital management

On target for $350 M

by mid-2018
Manufacturing & Quality
Optimization
Ongoing commitment to
harmonize and optimize
supply chain, manufacturing
and quality systems

Leveraged Earnings

Cost structure enables

accelerating revenue
growth to drive margin
expansion

12

Disciplined Capital Allocation

Growth

Dividends

Disciplined M&A
and Cap Ex investments

Committed dividend
program

Strong balance sheet

Deleveraging

Committed to 2.5 x
2018 leverage target
Paid $1.0 B of Biomet
acquisition debt in 2016

4-year CAGR of ~ 7.4%

Significant
Cash Flow
Generation

Flexibility
Project $2 billion+ in annual
Free Cash Flow by 2020
Enables long-term
value creation

13

IN SUMMARY

Global Leadership in Musculoskeletal Health

Built a Global
Leader

Successful,
Consistent
Strategy

Leading
Change in a
Dynamic
Industry

Delivering
Long-Term
Value

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