As we're going to get going, John Black at Stephens. Good afternoon. We're joined again by ZimVie, and thanks, guys, for coming. Appreciate the presentation. Today, representing the company, we have Vafa Jamali, CEO, and Rich Heppenstall, CFO. Vafa, I think you're going to take us through some slides at your own pace. When you conclude, we'll have plenty of questions for you if we get there. All yours. All right. Fantastic. Hi, everyone. Thanks for joining us late here. We are ZimVie. We are a global dental leader. We have a market-leading portfolio of implants, restorative biomaterials, and digital dentistry technologies. We lead with differentiated technology, and we continue to invest in innovation in this space. We have also been able to maintain a healthy financial profile through the efficiencies we've driven through operations. We've reduced our debt pretty significantly and improved our free cash flow generation. Why we like this market? Our focus is really on greater adoption of dental implants. There's for sure going to be some share transfer back and forth, but the real opportunity in this market is that in America, for example, there's about 8 million candidates for tooth replacement, and only one in four of them actually get a dental implant, and everyone else will get something more temporary. We think that provides the largest opportunity in this market. That is why when we get asked a lot, "Is this market dead?" we're like, "No, it's absolutely not." It is just greater adoption, more flow of patients, and more understanding from referring dentists that there is a better procedure and a better intervention for those patients. How we support adoption is through training. We train our own staff to be very knowledgeable both about the workflow practices of the customers and of our products. We do a lot of medical education. A lot of this will have to do with really how do you teach implants and how do you teach them to be durable, to be effective, to be cost-effective, and then ultimately, what kind of a customer experience do you gain? Our business, ZimVie's business, is over-indexed on the specialists. These are people that do much more complicated cases, but they rely heavily on referrals from the catchment area that they live in. If you live in this particular city, what our rep does is drives volume to you, and that's how we benefit. That's one of the reasons why you get to be called a premium implant, because you wrap a whole lot of service around what you're doing, and you give a great opportunity for people to grow. That's why DSOs work for us. That's why specialists work for us, meaning why we're effective and we're not afraid of that kind of consolidation. Clinical outcomes are really, really important here. What is the ultimate outcome? If you're talking about specialists, their reputation, their Yelp search, all that stuff really, really matters. The better you can do the procedure and the more durable and the more replicable it is, the better for the business. That is really where our focus is. We look at how do you fuel growth. Growth has been tough in this market for the last couple of years. First and foremost, like I said, we have an under-penetrated implant market. We think that adoption is going to be one of the pieces that is really going to help us. Obviously, there is share gain, and the way we can do that is with new product introduction. I will share a couple of them with you later. Through education, which is both how do I do it, how do I train, and then also how do I bring in referrals. Commercial excellence is efficacy of your launches. About 43% of ZimVie's sales are from products we sold in the—we've launched in the last three years. There's a pretty good vitality index, and typically with that would come a price increase and obviously more features and benefits in a tougher time moving away from our implant once they've moved to our newest one. Digital dentistry is really, really critical. This is around workflow. What we've learned is that much of what happens in these practitioners' offices is about opportunity cost. If we can create the flow where you're spending minutes with a patient and then you're allowing the computer to do all the other work through AI—check our ticker. AI, I just said AI and computer learning, so hopefully that's good for us somewhere. What we rely on is a very large database. We think it might be the largest digital database of implant procedures. What it allows us to do is digitally detect where the bone is, where the nerve is, and do a lot of the work that is done in a lab by a technician, and we automate that. That is really, really important in America because this is where the labor costs are the highest and the return is the biggest. We also have to teach people how to value that and how to value opportunity cost and also our reps on how to sell opportunity costs. We also believe that we can do some tuck-in M&A. The segment is pretty battered right now, so I think there are opportunities in us, and there are opportunities also in very small operations globally that can allow us either geographic expansion, product expansion, or manufacturing know-how that we can—instead of third-partying it, we can in-house. Those are some opportunities that exist for us now. Those are the four vectors that we'll look at for our growth. I mentioned innovation profile. We've got a long history of innovation. Our company is new in terms of ZimVie, the name, but we have brands that have been around for a long time. We've got 40 years plus of innovation. We have plenty of clinical evidence. This is a market where it's a little less about clinical evidence proving, but more about trying. You do need the evidence to get the claims that you require, which comes from the peer-reviewed articles. We have a pretty robust patent profile. The key products that we sell that are the bread and butter of our business are the TSX Implant, the T3 PRO Implant, RealGUIDE, which is our surgical guide. It's software. Implant Concierge, which is outsourcing all of your back office work. We do that for a cost of probably the cost of a premium implant itself. We do all the work, and we send back the finished product for the dentist to do the implant. It is a way to bring someone into a procedure that they had some discomfort with before, some trepidation before, and we really make that easier to do. Puros Allografts is the number two allograft in the market, and that is a bone substitute that is used to enhance the bone before an implant is done if the patient needs it. Encode Emergence is a great product, which is a healing abutment that is, again, digitally powered. We distribute product for Medit and Align, which are the scanners, the oral scanners. It's not an enormous driver of revenue for us, but it's an important part of just the whole ecosystem of digital that we rely on. We've had some recent launches that have been really great. TSX and T3 PRO are also new ones, but recently we've got the Immediate Molar Implant, which we launched in March of this year. It's a category that we were not in before and we're in now. It's basically an implant that is going to be a little bit shorter, a little bit wider, and it's used in the molar for molar implants, and it's an immediate loading capability, which has really done well. We've sold every one we've made. We also have expanded our portfolio with some restorative products, which is this Azure that we refer to here. Biomaterials, we have the Puros that I mentioned on the last page, which is the premium version of what we had, and then we decided to also expand our market and have a generic version. The reason we do that is to get a little more competitive on bids that are done where they aren't necessarily existing Puros customers, but they do need biomaterials, and we can use this to kind of wedge in and still sell a premium implant. It's been a very good strategy for us. I mentioned digital dentistry. We're making a lot of strides there. We've got the RealGUIDE that continues to enhance its product. I'll share a little bit more with you later. We've got the intraoral scanners, and then the ZimVie Scan Bars and BellaTek Bars. These are kind of what we believe is a market that we can do much, much better in, which is the market of full arch. This is where they replace all the teeth on the top or the bottom. That is a complicated procedure. We think it can be digitally powered. It's a very expensive procedure. With that, it's very lucrative to the specialist. We think we have some technology that can make this more efficient, more profitable, better for the patient, and the outcomes to be perfect for every patient. Because we digitally do it, you do not have a situation where your teeth are out too far or bent to the side a bit. You're trying to make screws fit into the place where you drilled the screws. We make it a lot less IKEA and a lot more, I do not know, bespoke. We're really excited about that, and that's something that we're going to keep working on. There's some positive portfolio trends. U.S. dental implants, as I said, our new products are really driving a lot of the growth. We mentioned that in terms of vitality, and that's doing quite well. We think full arch is an area that we're under-penetrated right now. I think, John, we do about 5% of our business was traditionally full arch, and we've moved that up to about 8.5%-9%, and we'll continue to measure that as an important part of any company that wants to be a specialist implant company. Then commercial excellence. We've made some changes commercially that have been widely well received by the customers and, frankly, by us, where we're measuring a lot more success right now and how we measure success. That's been quite nice. Digital dentistry has been a big star for us. RealGUIDE software, which is a cloud-based software, does not require you to buy any capital, which again goes into workflow and office management, saw 39% growth in 2024. Implant Concierge grew 14% in 2024. These are really, really great drivers for us. Think of those as kind of adjacent to the implant, but really critical to adoption. If you believe that that 25% adoption can be higher, then you do need technology to get you higher. This is really one of the ways that we are going to knock down that barrier. Biomaterials, which is an important part of the portfolio, continues to grow. Immediate Molar, I have talked about this. We launched it in March, and we have had some terrific success with it. This is going to be, again, a shorter, wider implant. It's about a $150 million market. We did nothing in here before, so we never had any business here before. That's in the U.S. only. We are now making inroads there. There's only a couple of competitors in that particular space that sell that specialty implant, and we have done really well. Like I said, we've sold everything we made. We think that that's great. We've used the TSX and the T3 PRO technology to make it a really, really great implant at a great cost. Digital implant ecosystems are a really important one. What we say here on our RealGUIDE is it's open. It's compatible with every scanner, every lab, every business that's out there. It's a very, very open system. We think that's valuable. One of the pieces that comes from that is that you have a lot of competitors using competitive implants, but using our software because it is just so much easier to use. We charge by click. We think there are ways to make it a little more proprietary, but that's kind of TBD. We've got to leave something to do next year. That is something we'll work on there. We do like the way that this is growing. Ultimately, our goal is to, again, increase adoption more than make this the pure growth driver for the business. Again, we used AI and advanced 3D visualization to really deliver the planning, the treatment, and then also the restoration. This is a really, really important market. It is, again, cloud-based. We do not ask the customer to buy a piece of capital. We do it all with a phone, a scanner, and the CBCT scan. That is all the things that we can do. We have gotten this to a point where we are now demoing, taking a picture, and then showing the patient what they will look like, which we learned from our customers was a great way to sell the procedure, right? They would look at it and go, "Guys, that is what I want," and they agree to it. The last piece around the focus on the products I want to tell you about is just Implant Concierge. This is a business that is based in San Antonio. We have just expanded to Japan, and it is a virtual implant coordinator. This is a no-investment, no-hook part of our portfolio. Again, very open. We have scale. Because we outsource the back office to our team there, they're very, very skilled, very trained individuals, and they can do all the planning. We can scale that up as much as we want, as quick as we want. We have operations in Costa Rica and San Antonio, and this group can really, really scale up. We can take on as many new customers as you want. The idea there, the proposition there is we felt like there was a lot of turnover in admin staff and lab staff over the last few years. Every time that happened, they had to train the people to how to do this, how to do an implant, how to do this particular one. Because we centralize it and we can do it virtually, we have all of that done through the web. What essentially will happen at the end is a doc will get a box, and in the box are all the materials to do the implant specific for that patient. We think there is a lot of value there to everything that we are doing that is patient-specific, and there is a lot of value to centralizing some of the work that everyone is replicating and doing it in one centralized fashion. We charge for it, which is great for us. The adoption rate and the growth rate will tell you that people see value in that. We are really quite happy with this. In terms of financials, we had our Q1 results. We had indicated a number of first-quarter headwinds, so you can see that we had a decline to prior year. Across the board, below that, you see an improvement to a business. Despite the top-line miss on some headwinds that we had, like we were still separating from ZimVie Biomet, we had a transaction manufacturing agreement that we exited. We had a lot of those headwinds that were basically going to anniversary by the end of probably third quarter of this year. Despite that, we've had tremendous work on margins. That is a 360 basis points improvement on COGS, and EBITDA improved 41%, and EPS grew 238%. Those are big numbers. I think what we're trying to convey is we said that when we spun out, we would clear the business up, make it a little more predictable, and get rid of a little bit of debt. People used to ask us, "Why do you have so much debt? Why do you have spine, dental, and bone healing?" We said, "We did not really control that, but we will control the next stage of this company." We have really done everything that we said we would, and we have improved cost in a pretty tough macro backdrop. We look forward to that getting better, and we look forward to the end market improving as well. I think when it is there, we are going to be in a really, really good position to benefit from that with the way that we have improved our operations. For the full year, we are looking at flat 3% growth in the top line, adjusted EBITDA growth to 17%, adjusted EPS 31%-55%. We think that, again, we're proving that in a tough market, we have enough capability to kind of manage it and continue to show improvement in areas that we can control and will benefit, I believe, disproportionately when the market actually turns to the better. That is it for us, John. That was great. That was a great overview. I'll ask a small handful of questions just based on some of the metrics in the slides, and then I'll zoom out and ask maybe a couple of market-related questions. On the Immediate Molar Implant that you touched on, $150 million market, I think you said competition, only two to three competitors. Where can you go with that? You're starting with essentially zero, right? You mentioned you did not have a product there before. What kind of share can you capture over the next handful of years? Because arguably everything there would be incremental to top line. Right. So we think if we just take our existing customers, which is who we've benefited from at the cost of somebody else who had that product. What we've always said is if you let somebody into your customer, then you open the door for them to take the other stuff too eventually. If we just look at that, we've overexceeded our expectations already. Like I said, we've sold everything we made. I think if you want to be super conservative, you would say you could get 15% of that share, same store. Because we're being a little more aggressive on price, we don't price it like a TSX or a T3 PRO, we could probably do better down the line. I'm sorry, that 15%, roughly over approximately what period of time would that be into that market? Yeah. In a normal business, that would take you a while. Right now, I think because the expectations have been past a couple of times, we're way over what we thought we would do. I think I probably need to re-look at that, but I think you need time to get to that. That could be a solid source of incremental dollars. Yeah. I could see a couple of million dollars in no time and then kind of growing from there. Okay. The other thing that I wanted to touch on from the slides is you mentioned full arch and roughly 5% shares where you were and then going to 8.5%-9%, I think were the numbers. Here you are, you're a premium implant company with relationships with the specialists, and the full arch resides pretty much with the specialists. Why were you under-indexed maybe to begin with? What have you done to move up from a share perspective, and where can that go? One of the largest competitors in the space used a challenger implant to come into our full arch accounts. They did it in a very elegant way, and that is how they kind of broke in. Then they started to grow from there. We just watched that happen. Again, a lot of this is around execution and errors. This is years old. This share is now coming back, but it was years of decline. You would think that we should be in the right place. I think that one of the pieces that goes into full arches is multiple implants. Typically, if you are doing a procedure, the COGS is a small part of the cost to a patient. In the case of a full arch, if it is four or five implants, it adds up and becomes more a part of the program. A doctor may want to take that discount on a full arch if the implant is good enough, right? I think we sort of let that happen, and now we're just going to go and get it back. We're going to use a little tech, a little creativity around how we package it as a bundle, and maybe a little bit of R&D. All right. Those are two sources of share, right? One, you were starting from zero. You did not have a product there. The other one, to your point, you let slip away, and now you feel confident in your ability to recapture. That's right. All right. so, the gross margins, I think it was 360 basis points, but with a flattish top line. I do not know if you've given long-term margin goals. Can you get to 70%, 70%+? And then what's in your control, and then what would be more market-dependent? Because 360 bps is a big move any way you cut it, but especially with a backdrop of sort of a flattish, give or take top line. Yeah. Certainly, 70%+ is best-in-class gross margin for the industry, and that's very aspirational for us. The 360 basis points of improvement that you mentioned is something that we've been working on over the past year, and that's been a function of a couple of different things. Number one, we've moved production from Palm Beach Gardens to Valencia, which gives us a cost arbitrage benefit. The second area is there's a little bit of benefit of mix, but the largest piece of it has really been taking excess cost out of the manufacturing organization and really basically driving manufacturing variances down to zero and then favorable. That's really been the benefit. I think where we look from here to be able to continue to expand margin, there's still opportunities to reduce costs around the system. One of the areas we've talked about historically that we have not yet had a chance to touch on is really driving automation and lights-out manufacturing. Our processes in manufacturing are very labor-intensive, which is why we're able to get the benefit by moving it. There are opportunities with technology to automate things like quality and manufacturing that will further expand margins and just take out a lot of and just leverage your overhead cost structure in a much better fashion. Okay. Our list of actually cost improvements is pretty, we feel more confident with that part than predicting the future. The other piece is we do a lot of third-party manufacturing. We buy a lot of third-party manufacturing. We've started to insource some of that. Recently, because we predicted the China tariff a year ago, we brought a big chunk of restorative business from a manufacturer in China in-house into Valencia. That saved us a lot of money anyways, plus it avoided a pretty big tariff. We have a few more of those opportunities too. That list is actually pretty robust, and we feel pretty confident about that. Now I'm going to ask you to predict on what's around the corner. We've obviously had a bunch of different dental companies up here throughout the day. Just based on the one Q2 2025 earnings call, it sounds like the end market remains pressured but not worsening. Was that the right way to read it? Fast forward to today, is that still sort of the case as we currently sit here? Yeah, I think so. I think if you want sustained growth, you probably need interest rates to come down a bit. So ability to finance a procedure has to become easier. I think consumer sentiment has to be there. The part that is in our favor is that this is sort of like an elective adjacent procedure in that you're going to have to do it at some point. And it's a delay that we're fighting against versus an avoidance of the procedure. It sounds like you're making a little bit of an argument for pent-up demand if and when we get there. Which we always have. If you look at the last three times this happened, you had a pretty big acceleration out of it. Now, it did not stay, right? It did not stay at that level, but it accelerated out, then kind of maintained at some normal mid-single digit kind of a number. You did have a pent-up demand that can accumulate. Not your numbers, but mine, just to go ahead and quantify the two to eight and then sort of stabilizing mid-single digit. That eight or that acceleration was arguably that catch-up component of the current deferrals. Then you went ahead and you normalized to market growth. Yeah. Because we couldn't understand a few things. We couldn't understand, I don't know how many people come up here and go they can't understand something and expect your investment dollars. We couldn't quite understand why people were using biomaterials. So biomaterials is the bone substitute. Why were they using it and then not getting an implant? We felt like that was a leading indicator that you were going to get an implant. Then we sort of started to build a thesis that maybe that was a way to get the patient in, but the patient still didn't come and close it. If they eventually go back and get the implant, they'll probably have to get bone substitute again. We've missed this one a couple of times in terms of when does that pent-up demand come back. Okay. If any questions, let me know. I'm going to push on. There's a great stat you gave. I think it was 43% of the revenue was with products produced in the last three years. Is that what was it? Yeah. With new products in the last three years. It's a great statistic. It also sort of means like, hey, when you look at your current pipeline and funnel, is it still robust? I think you had a slide there, but maybe talk to us on future innovation and your confidence. Can that 43% even move higher over the next couple of years? Yeah, it can. I'm really, really excited about our pipeline. When we first looked at the company, we had maybe 50 projects in the hopper, and we'd slowly get them done. We brought that down to, let's say, five that were active all the time, but there were five really good ones. Now I can really say that the ones that we have in the pipe are really, really big markets. They're big markets that we're not in. They're not necessarily cannibalistic. They get us access to things that we've been missing that can help our overall business. I think that you'll see over the course of the next three years really solid launches that'll just help our position. Okay. How about digital dentistry side of things and solid momentum of late. I think you guys were up double digits in 2024, and that is sort of putting aside some of the scanner distribution that you had alluded to. Fill us in, talk to the evolution maybe of some of those products. Does it have also another asset to it where it increases maybe the stickiness of the overall portfolio with the providers? The retention, so RealGUIDE is our software, surgical software. The renewal rate on that software is over 90%. We have a very loyal customer base that really enjoys using that software to guide their surgery. RealGUIDE is used by everybody. Like I said before, it is not proprietary to us. We have not closed it. It is open. If I had 40% market share, I would probably close that off, and it would be a major differentiator for us. Right now, it serves us in a way that maybe gives us access to some fishing spots that we would like to have, gives us the knowledge of what is going on, makes our software better, knowing every other procedure that kind of happens there. That one is one that continues to evolve. Again, everything we have done there is to make it super easy. With our software, it's all going to be on one screen, so you never transfer it. The lab sees the same thing as you do. The doc sees the same thing you do. The referring dentist sees the same thing as you do. We don't make you interpret across platforms. I think that that sounds really obvious, but if you think about your life, why certain operating systems work better than others is because they integrate really, really well. What we're doing now is we're integrating that with also our implant concierge, which is that other back office digital business that does all the planning and the prep for you. I think that what we've really done there is, again, make it really, really easy to work with us, make it really, really easy to plan a procedure, make it really easy to pay or not pay, right? Because we haven't tied you up, you're going to pay for a click. And if you got a renewal rate of 90%+, obviously those clicks are worth it. We think there's probably some price room there, but for now, we're using this right now to really, really drive adoption. There might be some things that we do to make it stickier down the line, but haven't really kind of pulled that trigger yet. Just going back to, and maybe I'll close with this, on the premium implant side, your thoughts of a longer term or maybe midterm growth rate. Is that all volume-based, or is there any price that you feel can be embedded into that figure? Price has not been a huge factor for us over the last three years. Despite everything that is kind of going on around us, we have not really given up a lot of price. Frankly, nor have we increased a lot of price in the last 16 months. We think that overall volume should improve. We think that because most of our losses in terms of revenue year- over- year are same store sales, that is just less traffic, we think that is a natural piece to grow. If you look at the pieces that we are adding to it, whether it be the Immediate Molar, again, the Immediate Molar is one of those things where if you let someone else into your practice, they could eventually take the rest of your business, right? If they are a better rep, better service, etc. That is a really important defensive and offensive part for us. Full arch is a very lucrative part of implant dentistry, both for the provider and for us, the manufacturer. We think that that's an area where we would gain share and volume if, again, you believe the adoption story, which is if you just get to a higher level of adoption like there are in other countries, you would automatically have that lift as well. I like markets like that because you don't only have to trade back and forth between four. This presentation has now finished. Please check back shortly for the archive.