ConvaTec Group Plc

So quiet, but I got some smiles, which is good. Hi, Monita. Nice to see you. She's like, why is he calling me out? Anyway, look, it's a real pleasure to be with you here this morning, and I'd like to welcome you to Convitec's first half 2024 results review. Well, what we'll be doing today, both Johnny and I, is reviewing both our financial performance and the strategic progress we've made. We're very pleased with the financial performance and the strategic progress we've made. And what I thought we could do now was to really spend some time to understand what are the five key overarching messages or thoughts we want to leave you with today. The first one is that in the first half of the year, we went ahead and delivered strong, broad-based organic revenue growth. In addition, we're very much on track to go ahead and expand our operating profit margin. and we're growing our earnings and our free cash flow. So clearly a strong financial result. When you then combine that from a strategic vantage point, we've gone ahead and strengthened our competitive position and our new product launches are doing very well in the marketplace. When you sum that all up, we're confirming to you 2024 guidance and our medium-term guidance. That's in essence what we want to share with you today. But let's look at some data. Let's look at some numbers to understand how has Convitec been performing during the course of the last five years. What you can see is that from a organic revenue perspective, there's been a clear acceleration in organic revenue growth. We've been executing a lot better across the entire value chain, R&D, operations, commercial. And we're very much on track to go ahead and once again deliver 5% to 7% organic revenue growth. And we anticipate and expect to be at the upper half of that range this year. In addition, when you look at the operating margin, what's been happening there is that initially we depressed that operating margin. We invested even more in R&D. We invested more in commercial. And at the same time, we went ahead and started driving efficiency in the area of GNA, and in the area of operations. And now you can start seeing how we're expanding our operating profit margin, gaining the benefit of the productivity initiatives, and gaining the benefit of leverage. And so we're very much on track to deliver at least a 21% operating profit margin in constant currency this year. At this point, let's go ahead and double-click and really understand how do we perform financially in the first half of the year. I'm going to pass the baton on to Johnny.

Thank you very much, Karim. Good morning, everybody. I'm going to talk about our financial performance for the first half. I'll say a few words about outlook and then I'll hand you back to Karim for the strategic review and the Q&A. Here are the headlines. The message is that the performance in the first half is very much on track for delivery of our full year guidance. Organic revenue growth was 6.6%, broad-based across all four categories and in the top half of our guidance range for the year. Operating margin increased by 40 basis points on a constant currency basis, although there was a 70 basis point FX headwind. This was against high inflation in the first half, which will be significantly lower in the second, and I'll talk about that. Earnings per share were flat, as reported, but grew 4.5% on a constant currency basis. That was against an increase in financing costs in the first half, whereas financing costs will be flat in the second. So I'll talk about that. And then free cash flow to equity was much stronger this year, nearly $50 million stronger than it was last year. And that improvement came mostly in working capital. And finally in the headlines, after investing in the business with CapEx and with some M&A, we ended with leverage of 2.3 times, which was 0.2 times lower than the year before. I said the revenue growth was broad based across all four categories. In that bar across the top there, you can see the organic revenue percentages and then the dollar contribution from each category is in the bars on the graph. We're going to go through each category one by one. On the right, you can see some small tailwinds, excuse me, headwinds from our exit from the hospital care business back in 2022 and also from FX. So categories, wound care first at the top of this chart, organic growth was 6.7%. It was solid growth in Europe and in JEM despite some headwinds such as the anti-bribery and corruption campaign in China and some impacts from political reform in LATAM. We've said previously that we expect growth in these two regions to accelerate in the second half as the headwinds and the comparatives ease and we still expect that to be the case. In North America, the growth was double digit, and that included very strong growth in InnovaMatrix, where we haven't seen any impact so far from the draft LCD proposal, which we'll talk more about in a moment. And there was good growth as well in our flagship brand, Aquacell AG+. In Ostomy, Organic growth was 4.9%, which was a further acceleration on the first half of last year. It included double-digit growth in GEM, where we made some strong performances in important markets such as China and Brazil. And there was a good performance in Europe, supported by the new launch of Esteem Body, which is now selling in Italy, Poland and the Czech Republic. Start is very encouraging. And then in the USA, Home Services Group helped to build sales in the community arena. We are growing share in the USA with the support of our strong presence in accessories and new patient starts is positive. In continence care, organic growth was 8.2% and this came from strong volume growth in the USA. New customers coupled with great customer retention and supported by price increase with about 2.5% improvement in reimbursement for Medicare, which affects about half of our revenue. And then in Europe and in GEM, we're still very small, but sales grew very nicely, adding to the category's growth. And the new launch of GC Air for women in France was off to a very good start. And then infusion care is at the bottom of the chart. Organic growth 7.3%. This came from an increase in demand for our infusion sets in diabetes across a wide range of customers and also double digit growth outside of diabetes, particularly in Parkinson's therapies. We're diversifying customers and applications in that category. We said previously that growth would be faster in the second half of the year, and we still believe that, making it another year of high single-digit growth for InfusionCare. So now onto profitability. Operating margin increased by 40 basis points on a constant currency basis. Price and mix added 50 basis points in the first half. And operations productivity added 50 as well, as we made further progress on automation, on network optimization, and on continuous productivity improvement initiatives. Inflation was high in the first half. It was about 6%, which was a headwind of 220 basis points. We've said before, it takes time for changes in market prices to feed through into our results because we use FIFO accounting with an inventory of about just under six months and we operate cost hedging as well. On the way up. For prices, things take time to impact us, but on the way down as well. We still expect inflation for the full year to be in the range 3% to 5%. and so significantly lower in the second half as the benefits of those lower market price increases feed through. We made improvements through simplification and productivity in our commercial area, which benefited other OPECs and there were further benefits in G&A efficiency as we increased the scope of our global business services function and we further standardized our processes. So the improvements in price, mix, operations productivity and G&A efficiency will continue into the second half against a much lower inflation headwind and so the increase in operating margin will accelerate. Going further down the P&L, EPS as reported was flat. It increased 4.5% on a constant currency basis, but flat because the increase in operating profit was absorbed by a significant increase in financing cost based on the increases in market base rates through 2023. You can see that on the left hand side. In the middle there is half two where you see that operating profit growth will be faster because it will benefit from that lower inflation I've just mentioned. And financing costs will be flat year on year because the higher base rates were already in the numbers in the second half of 2023. So that will make the EPS growth in the second half faster and we're still on track for double digit growth for the full year. Cashflow. Cashflow was much stronger in this first half, nearly $50 million at the level of free cash to equity. EBITDA was better because of the higher sales. The big improvement was in working capital, where last year we were investing in inventory to make our supply chain more resilient. But that was completed last year. So in 2024 and going forward, we wouldn't expect working capital to grow any more than sales. CapEx was a bit lower because of timing. Interest was a bit higher for the reasons I've just mentioned. And that's all led to free cash to equity of $57 million. Remember, cash flow is seasonal. There's more free cash to equity in the second half of the year. And we are on track to deliver double digit growth in that free cash to equity in 2024. And probably worth mentioning, not on the chart, the dividend was higher because of the 3% increase and also because we stopped the script. And then we completed the contingent consideration payments for the Cure and Triad acquisitions for a total cost of $71 million. All that together meant net debt went up by $100 million, but leverage improved, as I've already said, to 2.3 times. So looking forward then on outlook and revenue first. Wound care unchanged from mid-single digits. We reduced it to mid-single digits in May from high single digits to reflect the uncertainty introduced by the draft LCD proposal. It's important to say we've not seen any impact from that in the market as yet. In fact, sales are growing very strongly and we're still opening new customer accounts. But there's no resolution of the uncertainty yet, so we want to stay cautious. If that LCD is implemented as drafted at the beginning of Q4, wound care growth would drop to mid-single digits. But we don't think that's likely. There's a reasonable probability, we think, that the draft will be delayed and or modified. And if that's the case and it has no impact on the market in 2024, growth in wound care would be high single digits. And in the meantime, we are continuing to generate and disseminate clinical evidence. We've got a real world evidence trial being published this year. We've initiated two RCTs, one in venous leg ulcer, one in diabetic foot ulcer, which Karim will talk about more later. We'll be launching InnovaMatrix outside the USA in the second half of this year. And we are growing sales in the indications for InnovaMatrix which are outside the scope of the draft LCD proposal. Vascular ulcers, pressure ulcers, dermatology is a big market opportunity outside that scope. On ostomy care guidance is unchanged at mid single digit. In continence care, we're increasing the guidance to high single digit based on the strong performance in the first half and the good momentum that category's got. And then in infusion care, likewise, unchanged, also at high single digit growth. So altogether, we're on track for the group to deliver in our guided range of 5% to 7%, and we think we'll be in the top half of that range. Profit and cash guidance is also unchanged. Operating profit margin expected to be at least 21% in constant currency. I've said that inflation will be lower in the second half than in the first half. Mixed price, productivity in operations and G&A efficiency will all contribute to improvements there. Earnings per share will be we're on track for double digit with lower finance cost or no finance cost growth in the second half and free cash flow to equity also on track for double digit growth despite high capex to continue to build the business capacity, automation and digital tools. And with adjusting items at a similar level to last year, approximately 20 million of cash. So looking further forward then, we're on track as well to deliver mid-20s in 2026, mid-20s operating margin in 2026 or 2027. And this chart's in two parts. On the left, it's a reminder of why we believe we're on track for 21% at least this year. Lower inflation in H2 and all those levers growing the margin. The levers to grow the margin stay the same going forward over the next few years. In recent years, Mix has been a big contributor as we have focused the business out of low margin, low growth activity into higher margin, high growth activity. Going forward, operations productivity is going to play a bigger part as our automation agenda rolls out, as the network optimization gets embedded, and as we continue to deliver on many continuous improvement productivity initiatives. Price and G&A will continue to contribute going forward and all that against inflation, which we expect to normalize. So on track for mid 20s by 2026 and 2027. And in summary, this is a chart you've seen before. It is the sustained organic growth of 5% to 7%, broad-based across all four categories. And that improvement in the operating margin, combined with strong cash control, which gives us confidence we'll be delivering double-digit growth in EPS and free cash to equity going forward. Thanks very much. I'll hand you back to Karim.

Thanks, Johnny. Okay. I think it's pretty clear that we had a strong performance in the first half of 2024 from a financial vantage point. Let's try to understand strategically what's been happening. This framework should be familiar to you. This is our FISB corporate strategy. Focus, innovate, simplify, build, and execute. And we've been going ahead and executing on this strategy, and our strategy is delivering sustainable and profitable growth. That's what we're striving for. When you look at focus, we've reconfigured the business to fundamentally have a chronic care business. Over 93% of our revenues are in the area of chronic care, and I'll talk to you more about that. Secondly, we're obsessed in the four categories and the 12 geographies that we focus on with the whole notion of customer loyalty. How do we drive customer loyalty with consumers and healthcare providers? And I'll be telling you more about how we do that. On the innovation front, we've more than doubled our investment in R&D. We're launching new products successfully. And in fact, we're underpinning these new products with a bolstering of our medical education and professional education efforts. About a year ago, we would have been on track to complete about 12 studies or trials. This year, we'll be completing 24. That's double the number. And I'll tell you more about why that's so significant for being able to drive primary demand. When it comes to the whole area of simplification, we're driving that in the area of operations, very much focused on automation and robotics, particularly when it comes to packaging lines. Significant room for improvement there. Second, we're optimizing our network. And you might say, well, what does that mean practically? Well, what it means is, for example, we've taken our facility in the Netherlands, which was subscale, not automated, shifted that production to Slovakia, much larger scale facility, much more efficient facility. That gives us clear cost savings. And lastly, we have a whole stream of continuous improvement initiatives where, for example, we'll look at our packaging and understand, are we using the right materials? Can we do a better job on procurement? Now, not only are we driving productivity in the area of quality and operations, but we're doing the same thing in G&A. We've rolled out global business services. We've broadened the scope of our global business services in terms of standard processes, standardizing systems, and that's driving G&A down. We're at 7.5%. Many of you will recall that several years ago, we would have been at 13 points of revenue. And we've committed to you that we're going to drive that GNA number to 7% or less. And we're confident we're going to do that, and there's room for improvement there. In terms of building capabilities, we've built capabilities in areas like pricing. We're leveraging our pricing center of excellence. And in the first half of the year, the pricing center of excellence, in collaboration with our business units, achieved an expansion of our gross margin of about 50 basis points. And then we're just executing a lot better across the entire value chain in areas such as commercial. where more and more of our call frequency is focused on A and B accounts. That number today is about 65%. Historically, it had been about 45%, and we're striving to get to 75%. And as you do that, what happens is flagship brands like AquaCell AG Extra, a $200 million brand, grows double digit and grows market share. Now, let's try to understand this FISB strategy, how is it actually working in practice from a focus perspective, and how is it actually working category by category? Focus. 93% of our revenues are chronic care. You might say, well, Crane, why is that so salient? Why that's so important? Well, it's important that we understand that fundamentally, this chronic care orientation is driven by underlying conditions. In the area of wound care, cardiovascular illnesses and complications, diabetes. In the area of ostomy care, colon cancer, bladder cancer. In the area of continence care, multiple sclerosis, spinal cord injuries. In the area of infusion care, diabetes, Parkinson's disease, right? And what that basically does is it has us as a company, as Convitec, support all the various consumers and healthcare providers. And as a result of that, we have a very sticky model. So there's a recurring revenue aspect to this. Many of these consumers and patients are working with us for years and years and years. And let's try to understand this chronic nature of our business, how broad it is. And what you realize is in each and every category, we're pretty balanced. In fact, when you sum up all the categories that we compete in, they sum up to about $14 billion of market opportunity. And in each one of these categories, they're growing 4% to 8%. They're substantial growth. And in each instance, we're either growing at the same rate as that category or growing faster. And so we find ourselves in a situation where our competitive position is very strong. We're consistently a top three player in each and every one of these categories. Now, beyond having a broad and diversified chronic care business where we're executing better, we're also in the midst of launching a lot of new and exciting products. We're in the midst of launching seven new products currently, and we'll be adding, sorry, eight currently, and we'll be adding an additional seven here in 25 and 26. And what I'd like to highlight to you about this chart is that all these new products are across all four categories. There is breadth to this portfolio. There is richness. And here shortly I'll be describing to you how in each and every category we're successfully launching these new products. And that ought to give you confidence in terms of CombiTech's long-term growth prospects. So let's look at our wound care business, okay? So how do we strengthen our competitive position? The first thing we do is we invest in medical and clinical. So recently we completed a randomized control study. This was a non-inferiority study carried out across a whole series of countries and we compared AquaCell AG Extra to the standard of care, what is commonly carried out. Okay. And what we were able to demonstrate was in fact superiority. That's a really big deal. Okay. It's very, very rare that you demonstrate superiority. 75% of the wounds were fully healed when using AquaCell AG Extra. These were venous leg ulcers we're talking about. Standard of care, 56%. That means there's more than a 30% likelihood that if you use AquaCell AG Extra, you're going to have that wound fully healed. In addition, we ran real-world evidence studies, okay, across many, many countries, about 700 patients. And we tried to understand in the real world how would we perform. We collaborated with thought leaders around the world and introduced a wound hygiene protocol. Four key steps. The first thing is you got to cleanse the wound. Step two, you got to go ahead and debride the wound. Step three, you got to go ahead and refashion the wound. And then lastly, you use the appropriate wound dressing. We were trying to raise the standard of care on a global basis. And when we do that, follow the wound hygiene protocol, and utilize AquaCell AG Extra, guess what? 94% of wounds either improve or fully heal. That's a big deal, right? So when you combine the fact that we're strengthening our competitive position through medical education, guess what? We're also launching new products very successfully. We're launching ConvaFoam. We've launched in the US. Our win rate in terms of evaluations continues to be above 50%. And we're now going to be in the midst of actually launching it in Europe, right? We've actually received regulatory clearance to be able to do that in Europe and the UK. And we're very excited about that. Above and beyond that, Innova Matrix. It's doing incredibly well in the marketplace. It keeps on growing double digit. And we're in the midst of going ahead and getting ready to launch it now outside the United States here in the second half of 2024. Now, there have been many questions about ANOVA matrix, right? The LCD and what does it mean and where are you going, et cetera, et cetera. So I'm going to spend a little extra time now to really focus on ANOVA matrix. But as I do that, I want to make sure that you have three key takeaways. The first one is ANOVA matrix has a great clinical and scientific profile. It works really, really well. Two. We have initiated randomized control studies on ANOVA matrix in diabetic foot ulcers and venic leg ulcers. They're up and running. Three, fundamentally, ANOVA matrix will be a driver of growth for CombiTech, short-term, medium-term, and long-term. I hope I've been reasonably clear. Let's double-click. Strong scientific and clinical profile. Why do you make that claim? First of all, let's remember that Inova Matrix was cleared by the Food and Drug Administration in October of 2020. And it was cleared as a medical device. That's important because the hurdle bar for a medical device is very, very high. When the Macs assessed and developed their draft proposed LCD, they evaluated over 200 different products. Less than 50 of those are medical devices. And in fact, what we had to go ahead and do was demonstrate substantial equivalence. That's not my term, that's the Food and Drug Administration's term, substantial equivalence. So we demonstrated both scientifically and clinically that in essence, from a clinical and physical endpoint perspective, we were comparable and we met all the physical and clinical endpoints and were able to demonstrate that we were safe and effective for wound healing. That's a big deal, right? We were cleared by the Food and Drug Administration. Now you might say, great that the regulatory, the regulator, excuse me, gave you a thumbs up. What about physicians and nurses who have been using this product for two years? How do they feel about it? Here we go. Here are just two random quotes from thought leaders in the United States. Dr. Rader is very well known, okay? He's a podiatrist and what he tells you is it consistently delivers. We have another key thought leader who tells us, man, the speed at which the wound heals, incredible. And here's a real picture of a case study from Dr. Oldani. Dr. Oldani is a podiatrist in St. Louis, Missouri. When you look at that foot there, you can very quickly see we've got a type 2 diabetes patient who clearly has a diabetic foot ulcer, comorbidities, hypercholesterolemia. Hypertension. This food is at risk of being amputated. When you utilized, and when he utilized, Inova Matrix over the course of several months, guess what? That wound healed. Key messages, Inova Matrix really works. Don't mark my words. Talk to clinicians who are actively using it. What about any evidence? Do we have any evidence? Well, here's a study that will be published later on this year. This is a real-world evidence study. We worked with IntelliCure Analytics. They're the leading entity in the United States, over 500 wound care centers. They went in and analyzed and said, how did InovaMatrix perform? And what you see here is that 53% of the wounds were fully healed. As a benchmark, typically in this kind of cohort, 40% or less of wounds would heal. And what's interesting is that our cohort was really tough because typically about 15% of patients that are assessed in a real world evidence study, about 15, have life or limb-threatening situation. In our case, it was 44%, about 3x. So we had really an acid test. And nevertheless, we performed really, really well. So what I'm trying to tell you is that Inova Matrix really works. Clinicians see it. The regulatory sees it. We see it in terms of evidence. So what are we going to do about it? The first thing we want to note is that when you look at the whole market in the United States, 55% of the market is not DFU and VLU, diabetic foot ulcers and venous leg ulcers. Let's clarify that. 55%. So now we're focused on the 45% where the LCD was focused on, right? And when you look at this slide, look at the top half, first of all. I'm going to talk a little bit about evidence for a second. And what you'll note is that currently in terms of real world evidence, we're publishing data here in the second half. I've given you a snippet of what you'll be seeing, right? I just did that. The 53%, you just saw the graph. I already told you we're in the midst of initiating randomized control studies in diabetic foot ulcers and venous leg ulcers. We'll be reporting the randomized control study data in roughly the 2026 timeframe period. What does that practically mean? It means that both in the hospital channel or point of care and in the outpatient point of care, we'll go ahead and expand our coverage. Now you might be saying, well, there's uncertainty tied to the LCD. How does this all work? Well, it's actually quite simple. You've got a worst case scenario that in essence says, hey, the LCD is going to be implemented just the way it's been drafted. Yes, that will create headwinds for us, particularly in 2025. What is more likely, and we think there's a reasonable probability that this will occur, is that the LCD will be modified and or delayed. If that occurs, that gives us time to be able to complete the randomized control studies, report out, and actually get broader coverage. And then you've got the last situation, which is actually the LCD is eliminated, and that creates even more upside. But the bottom line is, a nova matrix works, we're gonna be getting more broad coverage, and it's gonna be a key growth driver for us, short term, medium term, and long term. I hope that was clear. Let's move on to another very exciting area, ostomy care. So what's happening there? We're growing new patient starts in the United States. It's an important signal. We've got a lot of really great team selling occurring. Our clinical team is working well with our sales team. We're working well with the home service group. And so that's helping us grow our business. On a global basis, in fast-growing segments like the convex segment, the accessory segment, we're actually outgrowing the growth rates there. And esteemed body is off to a really strong start. What you've got with Esteem Body is a new product where you've got the great Combatec adhesive base plate. It doesn't cause skin irritation. It doesn't cause leakage. But now we've also got a really discreet pouch. And so you can see, for example, in Italy where the rate of new patient starts has increased by more than two and a half times. So clearly we're growing that business. And we're not stopping there. We're underpinning the new products with medical education and clinical education. So we recently ran, for example, a global convexity summit. We had over 12,000 health care providers participate. So a lot of interest in this whole theme and topic, a lot of interest in Esteem Body. And so what are we going to be doing moving forward? We're going to continue to expand the launch of Esteem Body on a worldwide basis, including markets in the US, Europe, global emerging markets. But also, we're in the midst of being very much on track to launch Natura Body, which is our two-piece soft convex. The steam body is a one-piece. We'll be launching our two-piece Natura Body in 2026. What about Continence Care? What's happening in Continence Care? Again, a terrific business. When you look at Continence Care, we really provide outstanding service and outstanding products. On the service side, we've got world-class net promoter scores. Amazing levels of loyalty. with consumers, with healthcare providers. And you might say, well, how do you do that? I see the statistic, the 80 plus, right? How do you actually do that? In practical terms, what it means is that we've selected the very best people to be able to connect and dialogue with these consumers, but we also invest heavily in technology. So for example, we've introduced now a new AI-based platform that allowed us to reduce the waiting time by more than 50%. Already, if you called the home service group in the United States, you would wait on the phone about 30 seconds. I don't think that's that long. And we've cut that by more than 50%. That's what we mean by world-class service. Now, we've combined that with some great technology. We have a proprietary feel-clean technology. This proprietary field clean technology relates to the fact that when you're using a catheter four to six times a day, you don't want any friction. Friction would be bad. So we have a superiority claim from the Food and Drug Administration for superior comfort and less stickiness. And what you really are trying to do is to make sure you're not damaging the urethra. You don't want to harm the urethral cells. And now we've actually got scientific evidence that we don't harm the urethral cells, and we do that to a 30% lesser degree than the current standard. So clearly this field clean technology, which is very hydrophilic in nature, water loving, it is the third generation and the most advanced hydrophilic technology that provides superior comfort and goes ahead and make sure that it's a lot less sticky. So then what's happening geographically? Well, in the United States, we're the number one player as a service company with a number two player as a manufacturer. And when you look at the composition of our portfolio, Approximately 60% of our revenues are hydrophilic catheters. And if you're wondering if the market moves to more hydrophilic, that is good for Convitec. Let me say that again. If the market moves more to hydrophilic, that is good for Convitec for the avoidance of any doubt. And by the way, when you look at our new products, right, and you see how we're growing globally, we're leveraging the Feel Clean technology. It is cutting edge hydrophilic technology. And so we've launched, for example, GCR for women. in France. It's growing segment share very, very rapidly. We're going to go ahead and expand that launch to other European markets and the United States, so that bodes well for growth. And above and beyond that, we're taking that same feel clean technology, and we're going to be looking to launch GC Air for Men in 2026. So let's go to InfusionCare. I've given you a lot of stats, a lot of numbers, and I thought I'd love to share with you a story. This is a real story. So the story here is about a gentleman by the name of Damien Gath. Damien's from Derbyshire. He's 52 years old. And unfortunately, at age 42, Damien was diagnosed with having severe Parkinson's. He's a father, he's married, and he and his lovely spouse have four children, right? And he's been having to go ahead and take over 20 pills a day, right? And so many of you know that AbbVie launched ProDuodopa for the treatment of severe Parkinson's. And it's a dual suspension with a pump, and it uses our proprietary innovative infusion set. And what I'd like to do now is to show you a video where you can kind of get a sense of What was it like for Damien before using this innovative ProDuodopa with our proprietary infusion set? And what's it like after? He's one of the very first patients in the UK to benefit from this intervention. And literally here in the month of July is when he started using it. Without any further ado, let me show you the video. This is the before. Let's try to make some coffee. This is him after. I don't know about you, but I was incredibly touched when I saw that. And it just reminds us of what we actually do at Combatech, right? We have a brand promise, forever caring. We talk about pioneering trusted medical solutions to improve the lives we touch. And clearly here, we've touched a life. So I think it's very, very telling. Let's shift gears for a second. Infusion care, how's that business doing? It's doing very well. The reality is in the diabetes space, we've been... broadening the number of customers we're working with. We continue to partner very effectively with Medtronic and Tandem Diabetes, but we're also now growing and working with other key partners, such as, say, Ypsomed and Beta Bionics. So they're all doing very, very well as insulin pump therapy continues to develop in the marketplace. In addition, we've diversified our business into non-diabetes-oriented applications. You saw the example here with Damien in areas such as Parkinson's. in areas such as pain management and immunoglobulin therapy. So fundamentally, this is a really healthy business. Honestly, we're challenged with keeping up with demand. There's very strong demand for our offering. And so we're going to continue to grow this business. It'll grow, again, high single digit this year. And it'll continue to grow year after year in that high single digit arena or area. Let me try to summarize at this point. Hopefully, what you've gotten a sense of is that in the first half of the year, we went ahead and delivered strong broad based organic revenue growth and are very much on track to expand the operating margin. We also grew our earnings and free cash flow. When you think about 2024, I'm here to confirm to you that once again, we're going to go ahead and deliver the five to 7% organic revenue growth. We'll be at the upper half of that range. We will achieve at least a 21% operating profit margin in constant currency. And we'll go ahead and grow double digit our EPS and free cash flow. From a medium term perspective, look, we've got a very bright future. And in essence, you find a business which is chronic care oriented. It's got very attractive characteristics to it. We've got a strong competitive position there. And this chronic care business where we've got strong competitive positions in all four categories is underpinned by a whole series of new products that are going to be launching again across all four categories. And so then you say, well, what does that mean in terms of financials? What that translates into is you ought to be expecting double digit growth in EPS and free cash flow year in and year out on a compounded annual growth basis. On that note, I'm going to say thank you, and we'll open it up for questions. Okay. Hassan had his hand go up very quickly. Sit down first. Sit down first. We'll start. Let's just go by row, maybe, if that's okay. May I start with Veronica? Is that okay, Hassan? We'll let Veronica go. I'll just go row. Go ahead, Veronica. Okay.