2018 Guide to Effective Proxies

2.2 Board/CEO letter | 47 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES ZIMMER BIOMET HOLDINGS, INC. April2,2018 L ETTE R FRO M T H E IN D EPEN D ENT D I R ECT OR S T O OUR S H A R E HOLD E R S Asyou,ourin v estors, k no w , Z immer B iometishelpingtorestoreli v es w orld w ide. O urglo b alteamdesigns, manufacturesandmar k etseffecti v e,inno v ati v esolutionsthatsupportphysiciansandhealthcareorgani z ationsin restoringmo b ility,alle v iatingpainandimpro v ingthe q ualityoflifeforpatientsaroundthe w orld. O urmusculos k eletal technologiesanda w iderangeofrelatedproductsandser v icesma k eus v alua b lepartnerstohealthcarepro v idersin morethan100countries. Asdirectors, w estri v etogo v ern Z immer B iometinatransparentmannerthathelpstheCompanyachie v esustaina b le operatingandfinancialperformanceanddeli v erlong - termshareholder v alue.Wealsosee k tofosteraculturethat em b racesthehigheststandardsofintegrityintheday - to - dayconductofthe b usiness. ChiefExecutiveOfficer Succession Thisyear, w e,yourindependentdirectors,performedoneofthe k eyfunctionsa b oardofdirectorshas: w eo v ersa w a CE O succession.In J uly201 7 , w eas k edtheCompany ’ sChief F inancial O fficer, D an F lorin,toassumetheroleof InterimCE Ow hile w eperformedatimelyandthoroughCE O searchprocess.Withtheassistanceofaleading executi v esearchfirm, w ecarefullyidentified,e v aluatedandinter v ie w edanum b erofhighly -q ualifiedcandidatesand concludedthat B ryan H anson w asanidealfittoleadtheCompany.Wearepleasedthat B ryan j oined Z immer B iomet asPresidentandChiefExecuti v e O fficerin D ecem b er201 7 . B ryan w asalsoelectedtotheCompany ’ s B oardof D irectors. B ryan b ringsaremar k a b lestrategicandoperationaltrac k recordinleadingmedicalde v iceorgani z ations thataligns w ith Z immer B iomet ’ scommitmenttogro w thandenhancingshareholder v alue.Thisleadership appointmentcomesatanimportanttimeintheCompany ’ shistory,and w eloo k for w ardto w or k ingclosely w ith B ryan tofurtherle v erage Z immer B iomet ’ sleadingportfoliooftechnologies,solutionsandpersonali z edser v icestodri v e long - termshareholder v alue. Near-TermBusinessPriorities In201 7 , Z immer B iometreportednetsalesof $7 .824 b illion,anincreaseof1.8 % o v er2016,andannounceda num b erofexcitingne w productsthatenhancetheCompany ’ scorelarge j oint b usinessandexpanditsinfluenceina num b eroffast - gro w ingsegments w ithinthe b roadermusculos k eletalmar k et. Still,thereisno w ayaroundit – 201 7 w asachallengingyearoperationallyfor Z immer B iometinthe U .S.Importantly, under B ryan ’ sleadership,the Company ’ sprioritiesfor2018ha v eadeli b erateemphasisonre b uildingre v enuemomentum, addressingcertainnear - termchallengesandsettingthestageforenhancedshareholder v aluecreation.Prioritiesincludeachie v ing k ey q uality remediationmilestonesattheWarsa w NorthCampus,supportingtheCompany ’ s w orld - classsalesorgani z ation w ith greatersupplyreadinessofimpacted b rands,executingexcitingne w productintroductionsand b uildingacohesi v e culture w ithin Z immer B iomet.This B oardisconfidentinmanagement ’ splananda b ilitytore b uildre v enuemomentum andenhanceexecution. BoardSkills,DiversityandRefreshment J ustasaseamlessmanagementsuccessioniscriticalto Z immer B iomet ’ ssuccess,ourapproachtothe B oardisto ensurethatitcomprisesindependentthin k ers w ithhighintegrityandtherightmixof q ualificationsandexperienceto o v erseetheCompanyandrepresenttheinterestsofshareholders.Weha v eaNon - Executi v eChairman, L arry G lasscoc k ,andadi v erse,steadilyrefreshedandannuallyelected B oard. Ov erthepastsixyears,sixindi v iduals j oinedthe Z immer B iomet B oard,and w eexpectthe B oardtocontinuetoe v ol v eastheneedsoftheCompanye v ol v e. Wein v iteyoutoreadpages10 - 14oftheproxystatement, w hichdetailour D irector q ualifications. 1 Total of 03 pages in section