Galderma Group Ag U/Adr

Warm welcome to the Golderma full year 24 financial results call. As customary, the press release along with the Golderma's 24 finance reports were published at 7 a.m. Central European Standard Time today and can be consulted on our corporate website at any time. Today's presentation slides as well as the recording of the webcast will be made available on our website after the call. Please be advised that today's presentation contains forward-looking statements, which would be treated with appropriate level of caution as detailed on this slide. Let me now introduce today's full year financial results webcast. Dr. Flemming Ornskov, CEO of GoDerma, will provide a performance update for the full year, including commercial and innovation highlights by product category. Thomas Dietrich, CFO, will then introduce the 24 financial results and the financial outlook. Both Flemming and Thomas will be available to answer questions from financial analysts before Flemming provides his final remarks to close the webcast. With this, I would like to invite Flemming to start Galderma's highlight for 24. Flemming, over to you.

Thank you, Emil. Good morning, good afternoon, and welcome to Galderma's 2024 financial results webcast. Today, we're excited to share our record-breaking performance as we close our first year as a publicly traded company with strong progress across our product categories and future growth platforms. DELDRMA is on a strong growth trajectory for 2025 and beyond as we focus on the continued execution of our growth-focused integrated dermatology strategy. Starting with our financial results highlights, Golderma delivered a record $4.4 billion in net sales for 2024, achieving 9.3% year-on-year growth at constant currency. Performance was widespread across product categories, with injectable aesthetics and dermatological skincare delivering particularly strong performance. Our growth remained predominantly volume-based, primarily driven by international, our larger geography. Galderma also set a new profitability record in 2024 with core EBITDA exceeding $1 billion for the first time. Our core EBITDA margin was 23.4%, driven by ongoing underlying profitability improvements, excluding investments in Nemolizumab, our novel biologic and therapeutic dermatology, now branded as Nemluvio. margin expansion in the second half of the year exceeded expectations. Thomas will cover this later in the call. Looking ahead, Goderma's 2025 guidance reflects both our continued growth trajectory and the investments needed for this key year of product launches. We're guiding for net sales growth of between 10% and 12% with a core EBITDA margin of around 23%, both at constant currency. While we expect underlying profitability to rise further in 2025, driven by operating leverage, this will also be the year with the biggest adverse P&L impact from our investments in Nemo Listener. Overall, we're confident in Galderma's future and reaffirm our previously stated mid-term guidance. Beyond record financials in 2024, Galderma further solidified its leadership in dermatology. Starting with our broad and innovative portfolio, we delivered differentiated innovation throughout the year. We'll cover these more in detail later, but highlights include the first country launches of our biologic with Blockbuster Potential, Nemluvio, and Ralphie Nest, as well as the introduction of Restylane Shape, a new filler with bone-mimicking properties. We also expanded culture and elastin into new international markets and maintained a continuous flow of innovation with Cetaphil. On the scientific front, we released new data for Nimluvio in prestigious publications, including The Lancet and JAMA Dermatology. Additionally, to support the launch of Nemluvio, we conducted numerous education activities focused on the burden of itch in periglomodularis and in atopic dermatitis. We also premiered positive three-month interim data from a unique and first-of-its-kind injectable aesthetics trial for patients on rapid weight loss medication. The data demonstrates that a treatment combination of Restylane and Sculptra is effective to improve facial aesthetic appearance following medication-driven weight loss. Gilderma also released data supporting Sculptra's regenerative effect, showing how Sculptra helps restore the deep underlying structure of the skin. Now, let's turn to our global scale with omni-channel execution excellence. In 2024, we delivered double-digit growth in nine of our 10 international markets. we also significantly grew our sales force by more than 40% compared to 2023, strengthening support for Nimluvio's launch as and for our fast-growing emerging markets. In terms of skincare, we remain focused on digital-first execution, reaching billions of consumers with our campaigns and with e-commerce sales growing over 30% year-on-year. Last, but of course not least, we showed category leadership with our market-leading education and services, showcasing our innovative portfolio and strengthening our partnership with healthcare professionals. For the full year, Galderma reached over 225,000 healthcare professionals through education, training, and medical awareness activities. This included a prominent presence at key medical congresses and numerous proprietary educational events. Building us a sex of gain, which is our Galderma Aesthetic Injector Network, we launched SKIN, the Skin Knowledge and Innovation Network, spanning dermatological skin care and therapeutic dermatology. At the same time, we grew Aspire, our aesthetic loyalty program in the U.S., to 4.3 million consumers, adding over 200,000 new patients in the fourth quarter of 2024 for first-time treatments. Now, let's look at our performance update for 2024, including key achievements for the year by product category. Overall, Galderma delivered strong top-line growth for another consecutive year, achieving record $4.4 billion net sales in 2024, up 9.3% year-on-year at constant currencies. Fueled by focused execution and differentiated innovation, growth was predominantly volume-driven and complemented by positive mix. New product launches and geographic expansion remain key drivers of growth, accounting for nearly a third of growth in 2024. On the following slides, we review the results by product category, along with the significant progress made with Gilderma's BlockBlockster platform and future growth drivers. Starting with injectable aesthetics, Gilderma's largest product category, net sales for the full year were 2.3 billion U.S. dollars, with year-on-year growth of 9.6% at constant currency. Both injectable aesthetics categories, the subcategories, performed very strongly, with double-digit growth rates for this port and for sculpture. Valderma continued gaining market share with its injectable aesthetics portfolio despite intensified promotional activity across markets. In neuromodulators, globally, we continue to perform very strongly and reduce the gap with the leading player. In fillers and biostimulators, we are pleased with the acceleration we saw versus last year with significant growth and continued market share gains. The filler market saw strong performance in our international choreography, while the US is facing unique dynamics. We're noticing three trends particular to the US. First, overall filler demand and utilization has gone down. This includes from normalization following the COVID-19 boom and shifting consumer trends. Second, we see greater price sensitivity driven by increased competitive pricing, especially for less differentiated products such as mid-phase fillers. And a third, we're noticing increased direct-to-consumer engagement. In that context, we remain committed to our strategy, focused on our premium precision and integrated dermatology strategy. Globally, we're doubling down on science and healthcare professional engagement. Our focus also remains on driving growth for products where we have clear differentiation while preparing for launch for further innovations. In injectable aesthetics, overall for the fourth quarter, beyond some market software, year-on-year growth was impacted by a high comparative base. It was also affected by phasing of growth across soft categories in the second half of the year, rebalancing the sales phasing for the third quarter. With that, Let's look at some of our 2024 achievements by subcategory. Starting with newer modulators, we continue to deliver strong growth and outpace the market. With our base portfolio and flagship brand Dysport, we continue to gain market share globally, led by gains in seven of our top 10 markets. This includes continued share growth in the US and in China. In China, where we see significant untapped potential. We achieved double-digit growth in 2024, expanding distribution following our launch only a few years ago. In the U.S., despite softer consumer demand and aggressive competitive pricing, disbarred consumption remained strong, outperforming the market for both the full year and for the fourth quarter. In Europe, we became the number one player in Southern Europe, further strengthening our overall leadership in the region. And in Latin America, where we also lead in injectable aesthetics, we outperformed the market by two times. Notably in Mexico, where we were the only new modulator to achieve double-digit growth for the full year. A strong growth trajectory for Dysport. which will be further boosted by Ralphides, our next generation liquid neuromodulator. Ralphides is tracking ahead of expectation with strong first launches in Germany and in Spain. Feedback so far is very positive, especially on the fast onset with many patients reporting visible results as early as day one. The product is now approved in 14 European countries as well as in the UK and in Australia. Our teams are actually progressing on this launch rollout. For the US, as communicated previously, our teams are working towards refiling by year end. You may recall that we have received a complete response letter from the US FDA. The observations were not related to the product's efficacy or safety, but rather to chemistry, manufacturing, and control processes. This is quite standard in this subcategory, due to the very complex manufacturing processes. In parallel, as Ralph Fidesz is our first global neuromodulator, we are also looking forward to expanding into new markets such as the Middle East. At this year's NCAST World Congress, interest in our Ralph Fidesz symposium was so high that we reached maximum room capacity at 1,800 participants, forcing us to turn people away. Our fillers and biostimulators category also grew in 2024, driven by focused execution and differentiated innovations. Fillers were impacted by softness in key markets, but saw sustained growth in Asia Pacific and in Latin America. Meanwhile, biostimulators continued on their strong growth trajectory globally with notable performances in Thailand and in the Middle East. set a strong foundation for our future growth diary we leverage our leading education activities to train healthcare professionals on our new innovations this included a successful train the trainer event in brazil for wrestling shape ahead of its launch planned in the coming weeks this will be the second country to roll out this bone mimicking innovation after canada in china We organized a game training event at the end of last year, which featured Sculptra for the first time. This was a great opportunity to start building education and excitement in anticipation of its launch there later this year. Overall, we remain well-positioned to keep driving growth with differentiated innovations that have yet to be rolled out globally, including Rastelane Shake, as well as Rastelane Skin Boothers, one of our fastest-growing SKUs. For the U.S. in particular, we are gearing up for several launches next year. We also continue to invest in science and innovation to shape and to expand the category in the mid to long term. A good example is the interim trial data we published on the effectiveness of our portfolio for patients experiencing medication-driven weight loss. We are well positioned to support the need of these patients, including their primary concern of firming up their skin. We believe this dynamic will further support cattle growth over the coming years. In terms of additional longer-term innovations in both fillers and in biostimulators, we're working on new indications and formulations along with disruptive technologies. Overall, 2024 brought exciting developments in injectable aesthetics with more to come in the years ahead, fueling our strong growth momentum. Moving to dermatological skincare, net sales for 2024 were $1.3 billion, up 10.7% on a constant currency basis. Yelderma experienced strong growth with both of its flagship dermatological skincare brands, Cetaphil and Elastif. In international markets, Cetaphil continues its strong growth project with notable market share gains in Brazil, Canada, China, India, the Philippines, as well as in the UK and Ireland. Meanwhile, Elastin started to ramp out outside of the US as we continued its international expansion. In the US, CWL growth was impacted by constrained consumer demand, but still captured pockets of growth, especially in e-commerce channels. It also benefited from improved shelving with Galderma's largest retail partner. Meanwhile, Alastin continues its strong growth trajectory, benefiting from its integration into Galderma's leading dermatology platform. This slide shows the strong digital engagement of our dermatological skincare portfolio, which is key to driving growth in today's environment. It affects the ability to target younger demographics and to capture the growing e-commerce share of the market. In 2024, Galderma reached billions of consumers worldwide by engaging with leading healthcare professionals and skin influencers. In the first quarter alone, Cetaphil reached over 5 billion consumers, and we continue to expand and deepen our global and local advocacy campaigns for both Cetaphil and Elastin. Elastin also achieved over 4.4 billion impressions from activities amplifying one of their peer procedure events in November. Our e-commerce sales also continue to grow, remaining the fastest-growing channel in dermatological skincare, with especially strong momentum on Amazon globally and in key markets. The strong e-commerce performance of over 34% was broad-based, reaching a record 34% share of total dermatological skincare sales, more than triple since I joined Gilderma five years ago. Cetaphil's outstanding year in e-commerce was marked by triple digit growth across many markets, especially on Amazon. Among the standout performances, Mexico delivered an astounding 170% year-on-year growth on Amazon and was recognized as one of the platform's best vendors for 2024. Lastly, I want to highlight another milestone that demonstrates Galderma's strength of execution in e-commerce. That is another record-breaking performance for Cetaphil in China during the so-called Double 11 activation. Not only did Cetaphil grow more than 25% year-on-year for that period, but it was also the brand with the greatest online share gain among all skin care brands. Cetaphil and Elastin are both well positioned for ongoing penetration expansion as demonstrated by our 2000 performance and their remaining opportunities for growth. First, we have the opportunity to build on re-energized brands through digital first activation and our science-based portfolio. Earlier in 2024, we revealed a new brand identity for Cetaphil. We also ensured a constant and consistent flow of new launches. we drew on our deep understanding of skin to launch differentiated innovation designed for sensitive skin, particularly in the face weights. These were tailored especially to younger demographics and local consumer needs, along with the continued global expansion of relevant lines such as baby in Asia. I'm also proud to share refreshed premium branding for Elastin. Elastin is now fully integrated into Galderma's platform with new packaging optimizing for display in physicians' offices. Elastin C Radical Defense Antioxidant Serum continued its robust uptake in the U.S. In just over a year, this award-winning product has gained significant market share and is nearing the number one position in this segment. Second, with Galderma's unique dermatology platform, we leveraged our full portfolio to accelerate our growth. Starting this time with Elastin, the benefits and synergies with our leading aesthetics portfolios are paramount. In the US, Elastin continued to gain market share as the preferred peri-procedural skincare brand. In 2024, it was the fastest growing of the top five professional US skincare brands with the largest share gain for the year. In Brazil, just four months after launch, Elastin already held over 5% market share among professional brands sold in pharmacies. This is despite a different go-to-market model with no physician-to-spend market in this country. Turning to Cetaphil, sales for the eczema-restorative line were boosted in conjunction with the ramp-up of Nimluvio in the U.S. knowing that eczema patients frequently report having sensitive and dry skin, Restoraderm can be a true complement to patient's regimen. This is another great example of our integrated dermatology strategy where our sales reps can draw on Gilderma's itch heritage to engage with healthcare professionals. In summary, dermatological skin care is on a strong growth trajectory with exciting opportunities ahead of further penetration and expansion. Looking next at therapeutic dermatology, net sales for the full year was $780 million, up 6.1% year-on-year at constant currency. Growth was driven by international markets and the first sales of Nimluvio in the U.S. This growth more than offset the decline in the U.S. of our mature therapeutic dermatology portfolio, mainly from the anticipated annualized effect of Horatio's loss of exclusivity. I'm proud to report for the first time, Nemluvio sales of 23 million U.S. dollars for 2024. Sales were predominantly in periglinal lies, given that the FDA approved this indication in August and that the atopic dermatitis approval was granted in mid-December. Nemluvio is on a strong launch trajectory and sets up therapeutic dermatology for significant growth. Over the next slide, we'll look at Nemluvia's launch trajectory in more detail. This is currently ahead of expectation and well on track to our peak sales guidance of about 2 billion US dollars. We're really excited about Nemluvia's early launch trajectory in the US, in periglonal lice and in atopic dermatitis. The feedback so far is very positive. reflecting the product's ability to treat patients and significantly improve their quality of life. Looking at periculonodularis, Nemluvio has been trending at about 30% weekly market share in new patient stocks. This is based on new-to-brand prescription from January to mid-February 2025. This covers only paid prescription and does not include products which are provided by Galderma patient services to help bridge until reimbursement. Delterma has invested in growing medical awareness and education of nemluvio, and more specifically, the very high burden of itch. This has translated into a high attention and intention to prescribe among healthcare professionals, growing patient awareness, with prescribing dermatologists telling us that nemluvio is being requested by increasing numbers of patients suffering from corigula nodularis, and increasing adoption from patients who have not previously followed a biologic treatment, what we call so-called naive patients. This speaks to the fact that pericardial nodular iris remain an underdiagnosed and undertreated condition. For atopic dermatitis, the launch trajectory off to a strong start, also compared to recent entrance, building on the positive adoption in pericardial nodular iris. We're continuing the expansion of the sales force and have now onboarded new sales reps following them Louvre's approval in atopic dermatitis. We expect to be fully resourced by the end of the year. Patient feedback has been positive also in periglonolaris and now in atopic dermatitis with early interest and uptake. Patients are reporting fast onset of itch reliefs which we now know is the most burdensome symptom for patients, with some patients itch-free within days of starting pre. Convenient dosing, only every four weeks from the start with an optional maintenance dose of every eight weeks. And last, but of course not least, low to pain-free injections with our unique autoinject. We continue to make significant progress on our payer discussions and are rapidly expanding, yes, rapidly expanding market access ahead of expectation. In both curricular nodularis and in atopic dermatitis, more than 40%, yes, 40% of commercial carbon life have access today to Nemluvio as a first-line, a first-line biologic treatment. This is a major milestone at this point of our launch for gesturing. Beyond the U.S., nemluvio was also approved in the past weeks for periclonolars and for atopic dermatitis in the European Union, as well as in Switzerland and in the U.K., marking the first approvals from countries within the so-called access consortium network. Regulatory review processes are ongoing in additional key markets while we continue our filing activities globally. We're also exploring new potential indications for Nimluvio as an incremental source of growth for Galderma's therapeutic dermatology portfolio beyond the midterm horizon. We're looking to initiate new trials in 2025 with more details to be shared with you later in the year. Starting with international, Galderma's largest reporting geography internationally continued driving Galderma's growth and delivered another year of double-digit performance in highly attractive and largely underpenetrated markets. International markets saw double-digit growth across all three, yes, all three product categories for the full year, with the fourth quarter of 2024 barking the strongest growth quarter of the year. The double-digit growth in international in the fourth quarter was driven by strong year-end engagement activities across product categories. This was further boosted by a low 2023 comparative base. Key highlights for international markets include new modulators, leadership, and market share gains with particularly strong demand in Europe and Latin America, failures and biased images, robust growth overall with notable growth in Thailand and in the Middle East, broad-based CTO growth across markets with strong growth in China and in India, a lasting expansion in its first international markets, and outperformance of the mature therapeutic dermatology portfolio in international markets. In the US, we delivered flat year-on-year growth for the full year. Modest growth in injectable aesthetics, dermatological skincare, and our first sales of Nimluvia were offset by an anticipated decline in therapeutic dermatology. In injectable aesthetics, our US business continued to gain market share across its portfolio. In a softening injectable aesthetics market with intensified promotional activities, growth for the full year was driven by Dysport and by Sculptor. In dermatological skincare, the largest growth contributor in the US was the fastest growing e-commerce channel, along with improved Cetaphil execution with Galderma's largest retail partner, Walmart. It was also helped by increasing penetration of Belasting, leveraging synergies from Galderma's leading position in the injectable aesthetics market and its practices. And in therapeutic dermatology, our mature portfolio declined from lower anticipated volumes and competitive pressures. As mentioned, Nimluvio recorded its first sales and is tracking ahead of expectations. For the fourth quarter, the U.S. overall recorded a single-digit decline from the continued impact from constrained consumer spending, a high comparative base in the fourth quarter of 23, along with rebalancing of growth compared to the third quarter of 24. This was especially the case for injectable aesthetics, where Galderma nonetheless continued to gain share, and the anticipated decline of the U.S. mature therapeutic dermatology portfolio, not yet fully offset by Nemluvio sales. Overall, we're very pleased with our performance globally with strong continued momentum for international markets and with a foundation well set for ramp up growth in the US in 2025. Before passing to Thomas, I'd like to take a moment to deep dive into one of our standout international markets, India. and highlight our achievements in 2024. It was a consecutive year of robust growth with ongoing expansion in one of the fastest-growing dermatology markets. In 2024, India surpassed 100 million US dollars in the year for the first time, continuing on its double-digit growth trajectory. In dermatological skincare, Cetaphil is the number one brand and continues to gain market share, which underpins the growth of the full portfolio. Diabetic dermatology is also outpacing the market by a factor too. Yes, factor too. Meanwhile, injectable aesthetics keeps growing from a small base, expanding its footprint and reaching more and more healthcare professionals. So Derma's success in India and globally can be credited to our leading dermatology advocacy. This includes a top sales force which we continue to expand, and a strong local team which is celebrating its Great Place to Work certification for the fourth year in a row. Gilderma is also leveraging and scaling its portfolio synergies, building on Cetaphil's leadership position in India's fast-growing dermatological skincare market Some of the highlights include Cetaphil as the number one dermatological recommended brand, Cetaphil as the number one most trusted skincare brand voted by consumers for the second year in a row, and Cetaphil as the number one skincare brand across e-commerce channels. Here, there are many more achievements worth highlighting, but including being Amazon's number one bestseller in cleanser and face wash for the last two years and e-commerce growing triple, yes, triple digits. Overall, our position was supported by omnichannel excellence. Beyond the billion consumers reached, Cetaphil drove strong advocacy campaigns, collaborating with more than 500 healthcare professionals and skin influencers to educate consumers on skincare. We also went totally viral as one of the most trending topics in 2024. India is, for us, a clear growth driver for Galderma today and in the future, with pace, distribution expansion, and increasing reach among healthcare professionals. This is just one example which highlights the potential we see across international markets. In many cases, these remain totally under-penetrated, and Gilderma is well-positioned to continue driving about market growth in 2025 and beyond. With this, I now like to hand over to Thomas, who will provide more details on Gilderma's financials.

Thank you, Flemming. It's my pleasure to comment on Galderma's full-year financial results and guidance, starting with an overview of our financial scorecard. Galderma delivered record financial performance in 2024, not only on the top line as Flemming just presented, but overall, with Core EBITDA surpassing $1 billion for the first time and leverage reduced to 2.3 turns. Core EBITDA grew ahead of sales driven by ongoing strong operating leverage excluding nemolizumab, as well as lower spend on nemolizumab due to efficiencies in research and development, which we'll look into on the next slide. Here is the 2024 P&L, and let me start with the core EBITDA margin improvement for the year. Core EBITDA margin was 23.4 percent in 2024, representing an increase of 30 basis points compared to the 2023 core EBITDA margin 23.1%. At constant currency, core EBITDA margin for the year was 23.6%, up 50 basis points compared to 2023. This foreign exchange impact is due to two things. One, our exposure to the Swiss franc, mainly from our headquarter in Switzerland, and two, due to the depreciation of the Brazilian real versus the US dollar in the period. The main driver for the core EBITDA improvements continues to be our ongoing operating leverage from our highly scalable integrated dermatology platform, as we'll see on the next slide. However, core EBITDA margin also benefited from lower than anticipated R&D spend for Nemolizumab of approximately 24 million U.S. dollars, compared to the 250 million spent for the full year, which we expected at the beginning of the year. These R&D cost savings in the fourth quarter were mainly from lower than expected costs for the prurigo nodularis and atopic dermatitis pivotal study. Excluding these savings, core EBITDA margin at constant currency would have been 23.1% instead of the 23.6% I mentioned earlier. Lastly, on core EBITDA margin, the improvements of operating expenses offset the impact of pricing pressures on gross margin, which came from an increasingly competitive landscape and some softer consumer demand in the U.S. Core net income grew by 138.8%, reflecting three main drivers. One, the strong financial performance on top and bottom line. Two, significantly lower financing expenses. due to our deleveraging and refinancing activities following the capital structure reset at IPO, and three, a significant improvement of the effective tax rate. For 2024, it was 25.5%, coming down nicely towards our midterm guidance of approximately 20%. Moving on to the next slide, you can see that Garderma's underlying profitability for 2024 reached 28.5% if you exclude the $226 million of total Nemolizumab operational expenses. As you also see, our underlying profitability continues to increase year on year and also compared to the 27.7% we achieved in the first half of 2024. The improvements are driven by operating leverage from our integrated dermatology platform especially benefiting sales or marketing spend. Next, let's look at the cash generated by the group. This slide here is a simple cash bridge. It shows our cash position at the end of December and the key movement versus year end 2023 in simplified form. Gadoma grew its cash position in 2024, allowing for early debt repayment. Let me walk you through the key items on the bridge. On cash generated from operations, we've already covered Galderma's high cash generation, which you see here, driven by the core EBITDA generation. As a reminder, the $58 million of pre-IPO incentive settlement represents a one-time cash out, which was settled at IPO and which we already reported on in our first half-year financials. On interest and taxes, Interest cash out for the year was $285 million, with the second half of the year benefiting from two things. One, the reset of our capital structure post-IPO, and two, further deleveraging and refinancing, including the issuance of our inaugural Swiss bond in late August. On capex and milestones, all three milestone and earn-out payments planned for the year were paid for a total of $176 million. And finally, On financing cash flow and foreign exchange, we repaid $256 million of our gross debt in the period, which is a testament of Galderma's cash generation ability. Let me now look at Galderma's deleveraging trajectory on the next slide. As you can see here, leverage came down to 2.3 turns at the end of December 2024. from 2.6 turns at the end of June and 4.9 turns at the end of December 2023. We reduced net debt for the year by $2.3 billion. Net debt now stands at $2.4 billion. As mentioned before, this reduction was due to the reset of our capital structure at IPO and the significant cash generation during the year. We achieved this despite major cash outs following the final Alastin earn-out payment of $50 million and the second-to-last milestone payment for Nemluvio of $126 million. The early repayment of $256 million of our gross debt was clearly the right thing to do given our strong financial results for the year. And finally, I'm very pleased to announce that Calderma received investment-grade rating from the rating agency Fitch this morning of triple B stable, reflecting our good financial health, responsible financial policy, and very robust business performance and outlook. Moving on to capital allocation. We made significant progress also here, in line with our previously communicated priorities, which remain unchanged. In 2024, we continued our strong sales growth trajectory, supported by investment in our organic business. We delivered on our deleveraging commitment, as mentioned earlier, with leverage at the end of 24 at 2.3 turns, supported by the strong cash generation. Regarding business development and licensing, the memorandum of understanding we signed with L'Oréal to work towards a new research and development collaboration has the opportunity to expand Galderma's innovation horizon via complementary R&D projects. We expect to be able to share an update in 2025 as discussions are progressing well. Last but not least, the Board will be proposing for approval at our upcoming AGM an inaugural dividend of 0.15 Swiss francs per share. The dividend payout represents approximately 17% of our 2024 reported net income to be paid in 2025 and, of course, subject to AGM approval. Moving on to our guidance for 2025. For net sales, we expect growth of 10% to 12% at constant currency. This represents an acceleration of Galderma's growth trajectory, fueled by the continued execution of our growth focus, integrated dermatology strategy, and two exciting launches, Nimluvio and Relcadet. For core EBITDA, we expect an overall group margin of approximately 23% at constant currency. This is the result of two drivers. One, our underlying profitability, to continue to increase also in 2025 as it has done in the previous year, as I have just shown before. And two, as you may recall from our past comments, we also expect in 2025 to see the highest adverse P&L impact from our investments in emolizumab. And that is why we expect the core EBITDA margin for the group overall to stay broadly in line where it has been for the past two years. More details to come on this in a moment. Our core EBITDA margin guidance also factors in the current and quite volatile global trading environment, including the ongoing implementation of tariffs in the US to which we have manageable exposure. We are very closely monitoring and managing the implications for our business on a day-to-day basis. While we are working through various short-term and very targeted mitigating actions, including possibly raising prices, if and where it makes business sense, we are also assessing longer-term options, including for our manufacturing footprint. Overall, Galderma is poised to continue its strong growth trajectory in 2025 and beyond, as we'll see in a few moments, when we will reconfirm our previously stated midterm guidance. On this slide, still focusing on 2025, on this one and on the next one, let me discuss the phasing of the top and bottom line for 2025. As you can see here, net sales growth in percent for the first quarter is expected to be subdued and to significantly accelerate thereafter. The black line here shows the community's year-on-year growth of net sales at constant currency reaching 10% to 12% for the full year. The bars represent the quarterly net sales in absolute dollars, which are following our typical seasonality pattern, and where you can also see that quarterly sales volumes are expected to remain strong throughout the year. However, year-on-year sales growth in percent in the first quarter of 2025 is expected to be clearly subdued compared to our full year guidance range due to a high comparable base in the first quarter of 2024, with especially strong growth in injectable aesthetics across all geographies. Then, ongoing market softness, especially in fillers in some markets, and the impact from the recent wildfires in Southern California, which we believe will be temporary. So, what are then the drivers of sales growth acceleration throughout 2025? We see three buckets of very exciting catalysts. One, the launch of disruptive innovation, namely Nemluvia and Relfidev. where Nemlouvel is off to a strong start in the US. There are additional launches in international markets planned for this year following the recent approvals, such as the launch already underway in Germany. Relfides started really strong as well in its first launch markets, namely in Germany and Spain at the end of last year. There are multiple additional launches upcoming this year, such as in France and Australia, with first sales already recorded in 2025. There will also be exciting science-driven innovation in our dermatological skincare portfolio to look forward to. Two, further geographic and portfolio expansion in international markets will remain a strong growth driver for us, with focused execution and investments behind these various opportunities. These include bringing existing innovation to new markets, such as the planned launches of Sculptra and Elastin in China, as well as the launch of restylane shape in Brazil and further penetration of fast-growing markets more broadly, such as in India, Fleming just covered, and China, where we still have many big cities yet to enter or to further penetrate. And three, the progressive ramp-up of year-on-year growth rates in the U.S. every quarter during 2025, including in injectable aesthetics. Overall for the U.S., This reflects market share gains, somewhat stable market fundamentals, and Nemluvio clearly being off to a very strong start. Therefore, we expect a strong sales trajectory for the group in 2025. Now, moving on to the phasing of core EBITDA for 2025. On this slide, the bars represent the core EBITDA dollars, while the black line represents the core EBITDA margin percentage at constant currency for the period. We are very excited about Nemluvio and continue to invest behind its strong launch trajectory. Therefore, we expect the majority, call it two-thirds, of the adverse P&L impact from our Nemluvio Nemolizumab investment to occur in the first half of the year. And for the second half of the year, core EBITDA margin is expected to significantly accelerate as the adverse impact from Nemolizumab OPEX investment likely decreases and as Nemluvio's sales trajectory rapidly increases. Of course, we also expect our underlying profitability to continue to improve also in 2025, as I stated before. And now let's look beyond 2025 at our midterm guidance. As a reminder, next sales growth for 2023 2027 is a constant currency, and teens are defined as numbers greater than 10 and lower than 20. On the sales growth, we continue to expect for the group low to mid-teens CAGR, injectable aesthetics also low to mid-teens CAGR, dermatological skin care high single digit to low teens CAGR, and for therapeutic derm, which includes nemluvio, a high teens CAGR. For core EBITDA margin, including nemolizumab, we expect 300 to 500 basis point improvement compared to 2023, the majority of which to be delivered in 26 and 27. And for Nemluvio, we continue to expect to reach above $2 billion in peak sales, which would naturally occur beyond the midterm guidance period. This concludes the introductory remarks of Galderma's full-year financial results presentation. Before we close the meeting with Fleming's final remarks, I would like to now hand back to the operator to open the call for questions. And as a reminder, can everyone please limit themselves to one question if possible? Operator, can you please open the line?