As previously announced, on

As previously announced, on March 1, 2022, Zimmer Biomet Holdings, Inc. (the "Company") completed the separation (the "Separation") of its spine and dental businesses through the distribution by the Company of 80.3% of the outstanding shares of common stock of ZimVie Inc. ("ZimVie") to the Company's stockholders at the close of business on February 15, 2022 (the "Record Date"). The distribution was made in the amount of one share of ZimVie common stock for every ten shares of Company common stock owned by the Company's stockholders at the close of business on the Record Date.

Due to the Separation, the Company is recasting certain previously reported financial information. The historical results of the spine and dental businesses are excluded from net sales, expenses and other line items, and reflected as discontinued operations, in the Company's unaudited Consolidated Statements of Earnings provided below. The Company is also recasting certain of its previously disclosed unaudited non-GAAP1 financial measures to exclude discontinued operations, as well as for a change to include upfront charges and development milestones related to in-process research and development ("IPR&D") projects acquired in a transaction other than a business combination in its non-GAAP financial measures. Additional information related to the changes in non-GAAP financial measures is further discussed below.

The Company is also updating how it presents geographic and product category sales to allow for better comparability with its peers.

The recast unaudited Consolidated Statements of Earnings on a continuing operations basis and other financial information contained herein are for informational purposes only. They do not necessarily reflect the results that would have been reported had the Separation actually been completed prior to the periods presented and are not necessarily indicative of future results.

The following unaudited Consolidated Statements of Earnings have been recast to reflect the historical results of the spine and dental businesses as discontinued operations, and such results are excluded from all line items other than those that reference discontinued operations.

The tables below present net earnings (loss) from continuing operations of Zimmer Biomet Holdings, Inc., diluted earnings (loss) from continuing operations per share, along with other various financial statement line items reflecting discontinued operations, on a GAAP (reported) basis and on an adjusted (non-GAAP) basis. The Company has recast its previously disclosed non-GAAP financial measures to only reflect the results from continuing operations; thereby removing the discontinued operations of its spine and dental businesses from its non-GAAP financial measures. Additionally, beginning in the three-month period ended March 31, 2022, the Company will include upfront charges and development milestones related to IPR&D projects acquired in a transaction other than a business combination in its non-GAAP financial measures. Previously, material charges for these IPR&D projects were excluded from the Company's non-GAAP financial measures. The Company is making this adjustment due to recent guidance from the U.S. Securities and Exchange Commission. The three-month period ended June 30, 2021, and years ended December 31, 2021 and 2019 are the only historical periods presented herein in which the Company had excluded such charges from its previously disclosed non-GAAP financial measures, and therefore those periods have been recast to conform to the new presentation in the tables below. The impact of this change in the three-month period ended June 30, 2021 and year ended December 31, 2021 was an increase to Research and development ("R&D") expense of $65.0 million, or $50.4 million net of tax. The impact of this change in the year ended December 31, 2019 was an increase to R&D expense of $5.8 million, or $4.3 million net of tax.

Adjusted earnings from continuing operations and adjusted diluted earnings from continuing operations per share exclude the effects of certain items, which are detailed in the below reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Sales change information in the tables below is presented on a GAAP (reported) basis and on a constant currency basis. The Company has recast the sales change information to only reflect net sales from continuing operations. Further, constant currency percentage changes exclude the effects of foreign currency exchange rates. They are calculated by translating current and prior-period sales at the same predetermined exchange rate. The translated results are then used to determine year-over-year percentage increases or decreases.

The non-GAAP financial measures presented herein differ from financial measures calculated in accordance with GAAP. These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP. Management uses non-GAAP financial measures internally to evaluate the performance of the business. Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the Company. Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income but that do not impact the fundamentals of our operations. The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures. In addition, adjusted operating profit from continuing operations and adjusted diluted earnings from continuing operations per share are used as performance metrics in our incentive compensation programs.

The following sales table provides net sales from continuing operations by geography and product category for the three-month periods and years ended December 31, 2021 and 2020.

The following sales tables provide the recast net sales % change and constant currency % change by geography and product category for the three-month periods within, and full years ended December 31, 2021 and 2020. Net sales change information is presented on a GAAP (reported) basis and on a constant currency basis. Constant currency percentage changes exclude the effects of foreign currency exchange rates. They are calculated by translating current and prior-period sales at the same predetermined exchange rate. The translated results are then used to determine year-over-year percentage increases or decreases. Management uses this non-GAAP financial measure internally to evaluate the performance of the business. Additionally, management believes this non-GAAP measure provides meaningful incremental information to investors to consider when evaluating the performance of the Company. Management believes this measure offers the ability to make period-to-period net sales comparisons that are not impacted by changes in foreign currency exchange rates. In addition, constant currency net sales changes are used as performance metrics in our incentive compensation programs. This non-GAAP financial measure may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP.

Cautionary Note Regarding Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements with respect to the Company's anticipated treatment of charges related to certain IPR&D for the quarter ended March 31, 2022, and the related impact to the Company's GAAP and non-GAAP earnings per share. Forward-looking statements may be identified by the use of forward-looking terms such as "intends," "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "assumes," "guides," "targets," "forecasts," "sees," "seeks," "should," "could" and similar expressions or the negatives 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, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements, including relating to the Company's quarter-end closing process and review by management and the Audit Committee of the Company's Board of Directors. For a list and description of some of such risks, uncertainties and changes in circumstances, see the

Company's filings with the U.S. Securities and Exchange Commission ("SEC"). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. Forward-looking statements speak only as of the date they are made, and the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. Readers 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 herein.