ConvaTec Group Plc

Good evening. Wherever you may be, it's an absolute pleasure to be with you here today. And we're going to have the opportunity to go ahead and review both the strategic progress and financial delivery of 2024 at Convitec. You're all probably familiar with our disclaimer. And today, Johnny and I are going to be hosting you. And we've got an exciting program for you. We're going to go ahead and discuss with you three key topics. I'm going to go ahead and kick off and provide you a little bit with an overview. And in the course of that overview, I'm going to try to highlight two key things. First, what's all the progress that we've made during the course of the last five years? And what have we been able to achieve at CombiTech during the course of the last five years? And what does that bode in terms of the future? After we're done with the overview, I'll go ahead and shift gears and pass the baton on to Johnny, and we'll talk about financial performance. How did we do in 2024? What is guidance looking like in 2025? And then lastly, I'll finish up, and we'll talk about our competitive position. What is competitive position, and what are the prospects for future growth? So why don't we kick off? If you take away nothing today, I'm going to ask you to take away five key overarching messages. The first is that we went ahead and delivered broad based growth. What that means is that in each and every one of our categories, we went ahead and drew and we went ahead and drove significant growth and we outgrew the market. Second, we went ahead and increased our operating profit margin once again. Thirdly, we delivered double-digit earnings per share and free cash flow growth. Fourthly, we find ourselves in a situation at Convatec with the richest new product pipeline in about our 50-year history. What does that mean? It means that we are reiterating our guidance for 2025, and we are reiterating our outlook from a medium-term perspective. Let's dig in now and try to understand what happened during the course of the last five years. I was talking to several of you, and several of you guys were commenting here this morning in London that, wow, there's been a lot of progress. And each and every time I spend time with the Comitech folks, I actually notice progress. And I thought it'd be good to go back to literally five years ago when we were sitting in this room and we were mapping out what was going to be the transformation game plan, what was going to be the turnaround game plan. And some of you guys may remember that we talked about a vision, pioneering trusted medical solutions to improve the lives we touch. There were three concepts we outlined then. R&D driven, innovation driven. That's at the heart of being a successful med tech company. Two, we talked about solutions. We didn't want to be a device company. We wanted to combine the device with digital and with service. And so we were solving a real problem in the marketplace. But that solution needed to be trusted, which meant we had to improve our quality record. So we worked very, very hard during the course of the last several years to improve the quality of our offering. And at the end of the day, True North was always improving the lives we touch. We touch people's lives physically. We're literally in contact with your body for months and years. But we touch people's lives physically. socially and emotionally. And those lives, those people, that could be your mom, my dad, your sister, my brother. It's very personal for us. So we took that vision and said, great, how do we bring it to life? Well, we need a strategy. So we mapped out a corporate strategy, which we entitled FISB. Focus on key categories and key geographies. Innovate, simplify, build key capabilities, and execute like there's no tomorrow. On top of that, we went ahead and reorganized the operating model. Historically, our operating model would have been focused on key geographies. The power center really lied with North America, Latin America, Europe, Asia. We said we're going to change the model, and we're going to be category-led. One head of advanced wound care, one head of infusion care, clear accountability, and a direct line of sight to our key customers. There were distinct customer groupings. Two, we said we're actually going to go ahead and create the role of a head of R&D for all of Combatech, all of R&D. That has to be a real strong muscle of ours. And we went ahead and made sure that the head of R&D reported into myself. And thirdly, when it came to all the customer supporting functions, we said, you know what? We're going to create something called GBS, Global Business Services, to go ahead and drive improved effectiveness and drive efficiency. And that's exactly what we've been doing. Beyond the operating model, we worked on people. We strengthened the leadership team. We engaged colleagues. That vision that I shared with you, it wasn't developed by myself. It wasn't developed by the executive leadership team. In fact, it was a thousand colleagues at Comvetech that developed that vision. And we drove the culture to be patient-focused, consumer-focused, but with a high focus on performance, on delivery. We worked on incentives and rewards to make sure that those incentives and rewards were consistent with the metrics and milestones we were pursuing. We refreshed our core values. So now you might be saying, well, what did that actually accomplish? So let's take a look. Where were we back in 2019 and where are we today? And we're gonna look at it through four different lenses. Lens number one, organic revenue growth. It was about 2% back in 2019. In 2024, 7.7% growth. Sixth year that we've accelerated organic revenue growth. Two, what about R&D? We said we're going to be pioneering, innovation-driven. What did we do there? We more than doubled the investment in R&D. We've built capabilities now in product development, process development, clinical development, regulatory. We're successfully launching new products, right? So now all of a sudden, we've got the strongest ever pipeline. In fact, we've launched in the last 24 months or so, eight new products, and we plan on launching an additional eight new products in the course of the next 24 to 30 months. And what about operating margin? For three years in a row now, we have increased the operating margin. That's been a 350 basis point increase. Now, let's step back and remember that back in 19, we deliberately told you that we were going to go ahead and actually decrease the operating margin. Why? We had to invest more in R&D. We had to invest more in sales and marketing. That's exactly what we did. And we said we were going to reduce G&A as a percentage of sales. We were driving efficiency through global business services. It used to be about 13 points of sales. It's about 7 now. So the reality is that we're now growing our operating margin. We've done that three years in a row. We are on track to deliver an operating margin of 24% to 26% in 26 or 27. And what about momentum? We really didn't have any momentum then. Today, I think it's fair to say that we've got momentum. We delivered double digit earnings per share and free cash flow growth in 2024. And so I think it's fair to say that we've got momentum, and we're going to go ahead and continue to deliver that double-digit EPS and free cash flow to equity on a CAGR basis. What I'm confident telling you today, we actually have pivoted to sustainable and profitable growth. I am using the past tense. So what about the future? What does the future look like? It's exciting, no other way of describing it. Our best days are definitely ahead of us. Why? Three reasons. First of all, we have leading positions in large and growing chronic care categories. Second, we are deliberately targeting the fastest growing segments, and I'll share more data with you here shortly, But we are deliberately targeting the fastest growing segments in these categories with new and differentiated and innovative new solutions. And lastly, the turnaround is complete. We have strong foundations in place and we have momentum. I hope that overview was helpful to you. I'm going to pass the baton to Johnny and we're going to talk about financial performance. Johnny.

Thank you, Kareem. Hello, everybody. I'm going to present a summary of our financial performance in 2024, outlook for 2025, and then we'll hand back to Kareem for a strategic review and Q&A. We are very pleased to report a strong financial performance for 2024 with record organic sales growth, further operating margin expansion, double-digit growth in EPS, and excellent cash flow. Let's look at those. Organic revenue growth at 7.7% was broad-based across all four categories. This is the second year in a row when we have exceeded the top end of our target range of 5% to 7%. And operating margin, further progress, 100 basis points. That's 160 basis points on constant currency basis. Over three years, the cumulative impact of that is 350 basis points of improvement. Earnings per share was double digit growth. We forecast this time last year that it would be, and we reconfirmed at the interims that it would be, and it was. We expect double digit growth in EPS for 2025, one more year. Equity cash conversion was very strong at 97% and free cash flow to equity up 33%, benefiting from another year of strong working capital performance. And that cash flow enabled us to invest further significantly to grow the business whilst reducing leverage at the same time. The dividend per share, the dividend is proposed to grow 3%, same as it did last year, and that will take the payout ratio to 42%, back inside our target range of 35% to 40%. These strong results in 2024 build on the improvements over the last few years. And as you can see from these charts, and as we've heard from Karim already, sixth consecutive year of accelerating top line growth. Third year of operating margin expansion. Second year of improvement in cash flow and first year of double digit growth in earnings per share. I think what these charts confirm is that CombiTech has definitely pivoted now to sustainable and profitable growth. The sales growth was broad-based. You can see the contribution from each category in the columns on the left there. Significant contributions for them all. And on the right, there are two small headwinds, the last of the exit from hospital care and FX, leading to a total sales growth for the group of 6.9%. So let's look at the sales growth by category, starting with wound care, where organic growth was 7.4%. Our flagship brand, Aquacell AG Extra, had another strong year. And our new product, Convofoam, is building momentum through launches. Innova Matrix was up 34% to $99 million, and most notably, the indications outside the scope of the LCD, which we'll talk about in a moment, grew 70% to be a quarter of the total. Excluding InnovaMatrix, wound care grew 4.2%, faster in the second half than in the first, as we'd said it would be. And regionally, it was good growth in North America and in Europe, and strong growth in emerging markets. So on to ostomy care, where organic growth was 5.3%, continuing the trend of improvement over the last three years. The highlight there was Esteem Body, our new one-piece soft convex product, the first new product in ostomy for about a decade. It launched ahead of expectations and we expect continuing strong growth from that through 2025 as we launch across more markets. Regionally, we saw good growth in Europe and fast growth in GEM. And in the US, we're building momentum with another year of positive new patient starts. Onto the continence care, where growth accelerated to 8.3%, driven by volume and share gain in the USA, outstanding customer service and the improving product portfolio. We saw increasing sales of hydrophilic product and combatech product within our mix. And in particular, our new hydrophilic compact product, GC Air for Women, was very well received in the market. That's based on our FeelClean technology, which has a superiority claim with the FDA. And it's this performance that gives us conviction that the forthcoming change in reimbursement codes for catheters will be an opportunity for Convotec, because we are best placed to help healthcare providers and patients choose the best technology for them. Outside the USA, we're still small, but growth is building, and it now adds one point of growth to the category total. And then in infusion care, growth accelerated there to 11.2% for the year. Strong growth in diabetes with our major existing customers, Tandem and Medtronic, and also with newer customers like Better Bionics and Ipsomed. And we're really excited to see that the penetration of automated insulin delivery is accelerating. And that's driven by innovation across all different types of insulin products and pumps. And then in outside diabetes, the growth was very strong. And this is led by infusion sets for AbbVie's Parkinson's therapy. This outside of diabetes is becoming a bigger part of the category. We have a strong position in Infusioncare with increasing diversity across different customers and products. And this gives us confidence to say that we expect high single digit growth from this business for years to come. Let's look at profitability. We've said operating margin was up 100 basis points or 160 constant currency. There were improvements in price, in mix and in operations productivity around 50 basis points each. As expected, inflation eased through the year from 6% in the first half to about 3% in the second and that translated into a headwind of 160 basis points for the year as you see on the graph. Further progress on productivity in the commercial area and more efficiency in G&A, another 90 basis points. We've got to our initial target of seven basis points of sales for G&A one year early and there's more to do. Now, this chart just shows how we got to double digit EPS, and it's the same as we described at the interims. On operating profit growth of 12%, finance costs were about flat for the year, and the tax rate was close to flat, slightly up, translating into a 14% increase in the bottom line. We expect to deliver double digit EPS growth in 2025 in a similar manner. Now on to cash flow. Very strong conversion at 97% and free cash to equity up 32% year on year. The highlights I'd pull out from the slide are that EBITDA was up 12% based on the operating performance I've already described. Working capital decreased by 7 million despite the growth in sales, and that was 20 million better than the year before, mostly because of improved efficiency in inventory. CapEx was a little bit lower than the year before and at 5.3% of sales, a little bit below our target of six because of phasing of some projects into 2025. We paid a dividend of 130 million, and that is now all cash, no longer Scribd. And we purchased 11 million of treasury shares for incentive purposes. And then finally, 90 million of M&A comprised of the final payments for the Cure and Triad acquisitions. And we bought a small home services business in France in the second half of the year. So all that led to lower net debt by 71 million and improved leverage down to 1.8 times. So here is our guidance for 2025. And this builds on what we said back in November. We still expect five to 7% organic growth on the 96% of group sales, which are excluding Innova Matrix. And that growth will be broad-based. On Innova Matrix and based on the implementation of the LCD as scheduled on the 13th of April, we expect a headwind to sales of about 50 million dollars and that translates into about two points headwind on group sales growth. The LCD will remove coverage for Diabetic foot ulcers and venous leg ulcers, which will create a hiatus whilst we continue to generate clinical evidence. It's well underway. We expect to report that in 2026 and that will lead to re-establishing coverage. But in the meantime, the other there are another 13 indications which we are selling and over matrix four and that grew 70 percent in 2024. We expect continued strong growth in 2025. Operating margin, we expect to continue to expand. into the range 22 to 22.5. That's despite the headwind from the Innova Matrix reduction. And that's based on detailed plans for simplification and productivity in operations, commercial and G&A. That sales growth and margin improvement with little change to finance and tax expenses expected translates into another year of double digit EPS growth and cash conversion will be strong around 80%. It won't be as strong a conversion as in 2024 at 97% because that benefited from some favorable phasing. we would expect cash conversion to average around 85% on our double digit EPS growth going forward. Now, thinking about medium term targets, I thought it would be helpful to take a quick three year look. This is the last three years. We have delivered 350 basis points of operating margin improvement. And that has been against a very significant inflation headwind. 730 basis points. You can see the red bar there in the middle of the graph. That's an average inflation rate of 7%. There have been improvements in price. Improvements in mix as we have focused the business on the more profitable areas. Improvements in operations productivity as we have started to optimize and automate our factory network. During that time, we've made some investments in R&D to build the product pipeline and in sales and marketing to drive growth. And we have improved the G&A ratio, as already discussed, by over four points. Overall, we've improved productivity net of investments by about 11 points against inflation and FX headwinds of nearly eight points. So looking forward, we expect to make the same improvement over the next two or three years, the same net improvement in operating margin. but against a much lower inflation headwind. We're planning on inflation at about 3% per annum going forward. That's the smaller red bar you can see on this graph. And how will we do it? There'll be further benefits in price and mix as we continue to improve the product portfolio, but we are not baking in any general price rises. So that could be upside. There'll be further progress on operations productivity because in our automation, digitalization and continuous improvement programs, there is still a lot to do before we get to the level of best practice. And on other OPECs, and in particular on G&A, there is also more to do. Because not all of our geographies are included in our GBS at this stage, and not all of our processes are included end-to-end. We're investing in digital and AI tools, which will also help us further improve productivity. So taking all that lot together, we're well on track to reach our mid-20s operating margin in 26 or 27. And I'll just summarise by saying that 2024 was a year of strong financial delivery. Sales, margin, earnings and cash all finished a bit ahead of target. 2025 will be another year of delivery. Despite the headwind from Innova Matrix, we will deliver further expansion of operating margin and double digit EPS growth. And medium term, we are going to deliver 5% to 7% organic sales growth year in, year out, mid-20s operating margin, and compound growth in EPS and free cash flow to equity. Convotec is now positioned to deliver structural compound growth. Thanks very much. I'll hand back to Karim.

Thanks, Charlie. Well done. Okay. Okay. So you can clearly see that from a financial perspective, we're well positioned. What about our competitive position? Because ultimately that really drives the performance of the company, right? And let's try to understand that category by category. We're going to first of all start off with the wound care category. And we've split up the wound care category into four key segments, right? And we're going to assess each segment and try to understand, like, how competitive are we and what are the prospects for the future? So let's start off with the first segment. And the first segment is the antimicrobial segment. It's about a $1.1 billion segment, right? It's growing at about 6%. And we have our flagship brand or product offering there, which is Aquacel AG Extra. right? We've got about a 30% global share of market. That's doing really, really well. So what's going to happen in the future? What's going to happen in the future is that we will be launching in 2026, ConvaFiber, okay? And so there, the idea is you're going to have even better exudate absorption properties, proprietary surfactants, and again, it's not going to have any silver, and that has benefits in some key markets, such as, say, France, as an example. What's also really exciting is that We're going to be launching Conviniox. And I'll be spending more time describing to you Conviniox. But it's got some great antimicrobial properties, but it also actually increases blood flow, right? So it accelerates wound healing. And we're very excited about this offering. And I'll talk to you more about how we anticipate regulatory approval in Europe, actually in 2025. And then we'll be launching in 26, both in Europe and in the United States. What that is going to allow us to do is to fundamentally accelerate the growth of this particular segment. It's a breakthrough technology. But let's just wait because I'm going to share with you some data here in a second, which I think is pretty darn compelling. Two, what about the phone segment? It's about double the size, about $2 billion. growing again at about 6%. Historically, we've not had a particularly competitive product offering, so we've had about a 5% share of market. We launched ConvaFoam, much better exudate absorption properties, much better adhesion properties, right? And so now all of a sudden we're winning in clinical evaluations over half the time. And we're actually growing share in places like the United States, places like Germany and places like the UK. And we're expanding that launch to additional geographies around the world. So that bodes well in terms of our ability to grow share. Third segment, biologics. We really were not participating in the biologic segment. We acquired Triad Life Sciences. We have a Nova Matrix. It's a fantastic product. It's being used by over 2,000 healthcare providers. 10,000 consumers or patients have benefited from it. We're actively driving its utilization in the 13 indications outside of DFU and VLU in the United States. We're actively now launching it in key markets outside the US, in key markets such as in Latin America. And so it bodes really, really well. And we're very much on track to complete our randomized control studies in diabetic foot ulcers and venous leg ulcers in 2026. which also will bode well in terms of growing. So we expect to grow Innova Matrix and to grow Cher. And then lastly, in the single-use negative pressure wound therapy, which is about half a billion dollars, 400 to be precise, but it's growing double-digit, we're planning on entering this particular segment with our new and innovative ConvaVac. It's going to leverage our proprietary wound dressings, but combining that with a very high-quality, high-reliability pump. So hopefully you're getting the sense that as we do all of this, this bodes well for us being able to deliver high single digit top line growth in wound care. But let's take a look now at some data. This is Conviniox, right? Randomized control studies carried out in the UK. And we're gonna go ahead and assess how does Conviniox compare to standard of care, okay? So you've got diabetes. You've got a diabetic foot ulcer and it's just not healing. For a couple weeks, it's just not healing. What do I do? Well, you can use Conviniox and you can increase your odds of actually healing that wound by 60% or use standard of care. But actually, let's go ahead and analyze this even more carefully and say, you know what? I'm going to look at if you have diabetes, you have a diabetic foot ulcer, very hard to heal wound, and it's infected. Now all of a sudden you use Conviniox, I double the odds that I will heal that wound. Standard of care, about 23% of the folks will actually have that wound healed. With Conviniox, it's 45%. It's nearly double. But then how fast do you actually heal the wound? The graph all the way to the right. We heal the wound three times as fast. Okay? You say, well, practically, what does that really mean? Because you can see the wound's healing within 12 weeks. Basically means you got diabetes, a diabetic foot ulcer. It's infected. On average, one out of every four patients will be healed with standard of care. With Convinox, one out of every two. We doubled it. And as opposed to waiting nine months to get that wound healed, it'll heal in three months. It's pretty darn dramatic. Think about the reduction in amputations, the reduction in hospital stays, how much better the patient and consumer is going to feel. The health care provider is going to look like a hero, right? This is super exciting. So we're basically on track, as I said, to go ahead and get regulatory approval here in Europe in 2025, and we would anticipate launching both in the U.S. and in Europe in 2026. What about ostomy care? This is a very exciting category, right? This is one we've had to work really, really hard, but we've got momentum now. And we broke it down in terms of three segments. In my overview, I highlighted to you how we are targeting the large and fastest growing segments with new innovation, right? You saw that in wound care, how we're doing that. In ostomy care, we're doing something very similar. So we broke it down in terms of three segments. Segment number one is what we call the whole area of convex products. You've either got a convex product or a flat product. Think about this as the adhesive base plate I'm talking about, okay? So when you're using a convex product, actually you can have soft convexity or just regular convexity. The soft convex, if you look at that in the pink, is actually growing a high single digit, 8%. So what did we do? We introduced a steam body, a soft convex offering, the first launch in ostomy care for Convitec in a decade, right? It's got the amazing Convitec adhesive base plate technology with leak defense. What that means is you're not going to leak. You would not want to have a leak, right? Whether that's urine or feces, that's not a good thing. Super embarrassing. You don't get that with us. And on top of it, we've got a very discreet pouch now, right? So now all of a sudden in key markets like the United States, like Italy, like Poland, like Slovakia, we are growing share of market. We're driving new patient starts. That's super exciting. And we're going to be launching the two-piece soft convex offering in the Tura body as early as 26 and early in 27. So in that 26, 27 timeframe period, we'll be launching that, right? So now all of a sudden, we're leveraging some really exciting product offering with our service capability. We're leveraging, for example, home care capability in the US with 180 Medical or the AmCare capability here in the UK, right? You look at the next segment, The flat segment doesn't look like there's much revenue growth there. But the reality is that we've got a very unique technology platform. It's called the moldable technology platform. We've got strong IP position there. And now you can leverage that technology. And in fact, we've been growing that technology base and that offering in global emerging markets, double digit. And so we're going to be redoubling our efforts there to leverage that moldable technology and drive further growth. The accessory segment is also an exciting one. Again, you'll see it's about $0.6 billion, growing high single digit. And there we're looking to go ahead and leverage our refreshed brand there, Ascenta, which we're leveraging on a global basis. So clearly we're targeting the fastest growing segments, refreshing our portfolio and leveraging our services, whether it be our clinics in Latin America, whether it be our home care capability to drive growth. So we fully anticipate being able to go ahead and drive at least mid-single-digit growth in ostomy care moving forward. What about continence care? Similar story. Once again, we're targeting the fastest growing segments in continence care, but we're also growing outside the United States. So if you look at the U.S. area, what you'll notice is we've actually got a 40% share of market when you look at it through the service lens. We're the number two manufacturer, the number one home care company. But there's actually a segment there, the compact segment, which is growing very rapidly. Relatively small today, but it's growing rapidly. That's where we've launched GCR for Women, right? The Feel Clean technology. Superiority claim from the FDA in terms of comfort and less stickiness. That's doing very well, right? It's a hydrophilic, ready-to-use, compact catheter. We're going to be launching... the male version and the set version in 2026 on a global basis, including the United States. You look at Europe, that segment, the compact segment, which is growing again, high single digit, about 7%. We've historically not participated, and now we have our compact offering, GCR for women, right? And so we're leveraging that capability, and we'll also be launching the male version in Europe, right? And then you look at global emerging markets. We're also driving growth there. So all of a sudden now, we're driving growth both in terms of geography, outside the United States, and having a competitive offering in the compact segment, which is the fastest growing segment, and leveraging our tremendous service capability. This goes back to offering a solution. And what about infusion care? What's happening there? Very interesting. If you look at the top of the chart, let's look at the market dynamics. 350 million patients have diabetes worldwide. About 10% of them, 35 million, are in advanced stages of diabetes. And if you have advanced diabetes, you're no longer producing insulin. So you have to administer your insulin exogenously. So either it's an injection, it's a pen injection, or I use a pump. And what you'll notice is the ratio is about 94 to six. So it's 94% to 6%. But pump utilization is growing much, much more rapidly. You see that number of 11%, right? Why is that the case? Fundamentally, pumps are becoming a lot simpler to use, but you've also got continuous glucose monitoring. It's making the pump smart. It knows when your sugar is high or low. And when you combine that, all of a sudden, the artificial pancreas is here. That's why you see automated insulin delivery, fancy way of saying artificial pancreas, fancy way of saying pump plus continuous glucose monitoring. So as you see that happening, what we see on the pump side of things is that both durable pumps and patch pumps are growing rapidly. There's an acceleration occurring. as we move forward. And we benefit from that because we are the leader in providing infusion sets there. And in fact, now we've been able to diversify our customer base. We continue to have strong collaborations with Medtronic, strong collaboration with Tandem, but we're also working with IpsiMed. We're also working with Beta Bionics. And so now we find ourselves where our diabetes business is growing and is robust. But what about what's happening outside of diabetes? Well, outside of diabetes, We work in areas like Parkinson's, immunoglobulin replacement therapy, pain management. These three. arenas are also growing high single digit to double digit and you look at for example parkinson's where we're collaborating with abv and well positioned to be collaborating with mitsubishi tanabe in the future again in parkinson's there is very significant growth right so frankly we're investing heavily in infusion care and adding capacity to be able to go ahead and service all this demand so our level of confidence is high that we'll be able to grow this business in high single-digit there's growth in diabetes and outside a diabetes guess what we plan on growing in the mid-teens to high teens today it's over 10 percent of our business and it's going to become a larger and larger portion of our business hope we've gotten a sense that our competitive position across all four categories is actually strengthening year by year we're executing better Our pipeline is richer, and we're starting to get success in the marketplace in terms of these new product launches. We've launched eight, and there's eight more to go. And we haven't even talked about wave three. So I've been commenting on wave one and wave two. That's not for today. Okay, let's try to summarize. So here are the 16 products. You will notice that the 16 products are across all categories, right? So what have we said? In 2024, hopefully what you've been able to see is that this was the sixth year of accelerated revenue growth, 7.7% organic revenue growth. This was the third year in a row in which we went ahead and increased our operating profit margin. And we went ahead and delivered double-digit EPS and free cash flow growth to equity. We had record sales and record profits for the company. In 2025, what do we plan on doing? We plan on growing our organic revenue 5% to 7%, excluding Innova Matrix. We plan on increasing the operating margin to 22% to 22.5%. And we plan on delivering double-digit EPS growth, along with strong cash conversion. And in terms of medium term outlook, hopefully you've gotten a sense and it's clear to you that we have leading positions in structurally growing chronic care categories. That's a real big positive. You've also gotten a sense that we've got the strongest pipeline we've ever had in our history. There's a lot of innovation that is flowing into the marketplace, helping consumers, helping patients, helping health care providers, and frankly, allowing us to be successful. And lastly, I would say, I think it's fair to say that we are very much on track to deliver double-digit EPS and free cash flow growth to equity on a compounded annual growth basis. On that note, thank you. Let's open it up for questions. I think Hassan's hand was the first one to go up. You guys all have mics. We will make sure we get to all of you. There are folks that are also online. And so if the folks online have questions, we'll certainly take those questions also. So, Hassan, do you want to kick us off?