Smith & Nephew PLC (SNN) 2023 Q4 法說會逐字稿

Good morning, and welcome to the Smith & Nephew Q4 and Full Year '23 Results Presentation. I'm Deepak Nath, Chief Executive Officer. And joining me is Chief Financial Officer, Anne-Francoise Nesmes.

早安，歡迎來到 Smith & Nephew 第四季和 23 年全年業績發表會。我是執行長迪帕克·納斯 (Deepak Nath)。與我一起的還有財務長 Anne-Francoise Nesmes。

As you know, this will be Anne-Francoise's last set of results for Smith & Nephew. It has been an absolute pleasure working with her. I'd like to thank her personally for all that she has done in her time as CFO.

如您所知，這將是 Anne-Francoise 為 Smith & Nephew 取得的最後一組成績。與她一起工作非常愉快。我個人要感謝她在擔任財務長期間所做的一切。

I'd also like to take this opportunity to welcome our incoming CFO, John Rogers, who's here today in the audience. He brings a wealth of experience to the company, and I very much look forward to working together. John will be up here with me going through the numbers at our Q1 trading update in May.

我還想藉此機會歡迎我們即將上任的財務長約翰·羅傑斯（John Rogers），他今天就在觀眾席上。他為公司帶來了豐富的經驗，我非常期待一起工作。約翰將在五月的第一季交易更新中與我一起查看這些數據。

I'm pleased to report a good finish to 2023 with underlying revenue growth ahead of the guidance that we already raised during the year. And all 3 of our business units grew by over 5% for the full year, which is a clear demonstration of the strength of our portfolio.

我很高興地向大家報告 2023 年取得了良好的業績，基本收入成長超出了我們今年已經提出的指導方針。我們的 3 個業務部門全年成長均超過 5%，這清楚地表明了我們投資組合的實力。

Sports Medicine and ENT had a very good year, accelerating to double-digit growth despite a slow China market. And Advanced Wound Management has also maintained its momentum. Fixing Orthopedics is still a work in progress, but I'm encouraged by the 12-Point Plan progress and the higher overall growth that we've delivered.

運動醫學和耳鼻喉科度過了非常好的一年，儘管中國市場成長緩慢，但仍加速達到兩位數成長。先進傷口管理也保持了其動能。修復骨科仍然是一項正在進行的工作，但我對 12 點計劃的進展和我們實現的更高的整體成長感到鼓舞。

I'm also very pleased that we've achieved our target margin of 17.5% for the year despite macro headwinds from inflation, transactional FX, and a slow China market. That included a significant year-on-year step-up in the second half, and the organization showed what can be done with growth, focus and cost discipline.

我也很高興我們實現了今年 17.5% 的目標利潤率，儘管存在通膨、外匯交易和中國市場放緩等宏觀阻力。其中包括下半年的同比顯著提升，該組織展示了透過成長、重點和成本控制可以做些什麼。

The company is well positioned going into 2024. We continue to transform the way we operate Smith & Nephew through our 12-Point Plan, which aims to drive better execution in a more focused and accountable business unit structure. Our progress against the plan has laid the groundwork for improvement in U.S. recon with better product availability and improving set deployments by the end of the year. Our innovation strategy is delivering a strong pipeline of new products to drive consistent high growth over the coming years. And our productivity is visibly improving.

該公司已做好進入 2024 年的有利準備。我們將繼續透過 12 點計畫改變 Smith & Nephew 的營運方式，該計畫旨在在更專注和負責任的業務部門結構中推動更好的執行。我們在該計劃上取得的進展為美國偵察的改進奠定了基礎，在年底前提高了產品可用性並改進了部署。我們的創新策略是提供強大的新產品系列，以推動未來幾年的持續高速成長。我們的生產力正在大幅提高。

For 2024, we expect another year of good growth and margin expansion even against the headwind of China VBP, and I'll come to the detail in the outlook section. So the improvements we've made to how we do business have already translated into stronger financial performance in 2023. Revenue was $5.5 billion, which is 7.2% growth on an underlying basis and 6.4% on a reported basis, after an 80 basis points headwind from foreign exchange. Trading profit increased by 7.6% to $970 million, with a 17.5% trading margin, which as I've just highlighted was in line with our guidance for the year.

對於 2024 年，我們預計即使面對中國 VBP 的逆風，又會出現良好的成長和利潤率擴張，我將在展望部分詳細介紹。因此，我們在開展業務方面所做的改進已轉化為 2023 年更強勁的財務業績。收入為 55 億美元，在經歷了 80 個基點的逆風之後，基本增長 7.2%，報告增長 6.4%來自外匯。交易利潤成長 7.6%，達到 9.7 億美元，交易利潤率為 17.5%，正如我剛才強調的，這與我們今年的指導相符。

A nearly $200 million improvement in working capital outflow resulted in trading cash flow of $635 million. At 65% conversion, this is a good improvement in 2022, but there is, of course, still more to come. Adjusted earnings per share grew 1.3% to $0.828. And we're proposing an unchanged dividend of $0.375 for 2023.

營運資金流出改善近 2 億美元，交易現金流達 6.35 億美元。轉換率為 65%，這對 2022 年來說是一個很好的進步，但當然，還有更多進步。調整後每股收益成長 1.3% 至 0.828 美元。我們建議 2023 年股息保持不變，為 0.375 美元。

I'll now pass you to Anne-Francoise to go into the detail of today's results before I come back to discuss our outlook and the strategic progress. Anne-Francoise?

現在，我將請安妮-弗朗索瓦絲（Anne-Francoise）詳細介紹今天的結果，然後再回來討論我們的前景和戰略進展。安妮-弗朗索瓦絲？

Thank you, Deepak. Good morning, everyone. As Deepak said, this is my last set of results, and I'm pleased to be presenting to you a good set of improving financial results. So I'll start by covering the fourth quarter numbers that Deepak referred to.

謝謝你，迪帕克。大家，早安。正如迪帕克所說，這是我最後一組結果，我很高興向您展示一組良好的改善財務結果。因此，我將首先介紹迪帕克提到的第四季的數據。

Revenue was $1.5 billion with a 6.4% underlying growth and a 6.8% reported growth after 40 basis points benefit from exchange rate. The growth, as you can see, was across all of our regions and businesses. And factors behind the strong finish included the contribution of recent launches, better product availability, and the rebound in Bioactives following the successful transfer of SANTYL manufacturing to Fort Worth, which we completed in Q3.

營收為 15 億美元，基本成長 6.4%，受益於匯率 40 個基點，報告成長 6.8%。正如您所看到的，成長遍及我們所有的地區和業務。強勁業績背後的因素包括最近推出的產品的貢獻、更好的產品可用性以及我們在第三季度完成的 SANTYL 製造成功轉移到沃斯堡後生物活性物質的反彈。

Looking at the performance by geography. Growth in the quarter was broad-based with the U.S. growing by 6.2%, established markets rising by 6.1%, and emerging markets growing by 7.6%. Growth in emerging markets includes, of course, the headwinds ahead of Sports Medicine VBP implementation in China.

從地理位置來看表現。本季成長基礎廣泛，美國成長 6.2%，成熟市場成長 6.1%，新興市場成長 7.6%。當然，新興市場的成長也包括在中國實施運動醫學 VBP 之前所遇到的阻力。

I'll now move to the details by business units as we traditionally do, starting with Orthopaedics, which grew 4.9% in the quarter. Global Hips and Knees grew by 3.6%, with strong out-of-U.S. growth, reflecting improved product supply and commercial execution. U.S. Recon was a little slower, and this was due to a combination of factors, which we're continuing to address through the 12-Point Plan. There were still some areas where product availability impacted key U.S. SKUs during the quarter, before improving by year-end. We also made further progress in set deployments although, again, there is a lag before this reflects into the sales.

現在，我將像往常一樣按業務部門詳細介紹，從骨科開始，該部門在本季度增長了 4.9%。全球髖關節和膝關節增長了 3.6%，其中美國以外地區增長強勁。成長，反映出產品供應和商業執行的改善。美國偵察行動有點慢，這是由多種因素造成的，我們將繼續透過 12 點計畫來解決這個問題。本季度，某些領域的產品供應情況仍對美國主要 SKU 產生影響，但到年底有所改善。我們在套裝部署方面也取得了進一步的進展，儘管在反映到銷售之前仍然存在滯後。

Slow asset deployments earlier in the year were still costing us growth in a stronger market. And together with some anticipated rep turnover, this limited our ability to win new business and offset the usual revenue churn. So overall, our U.S. performance is not yet where we wanted to be, and this remains a priority.

今年稍早緩慢的資產配置仍然損害了我們在強勁市場中的成長。再加上一些預期的銷售代表流失，這限制了我們贏得新業務和抵消通常收入流失的能力。因此，總體而言，我們在美國的表現尚未達到我們想要的水平，但這仍然是優先事項。

Other Reconstruction delivered revenue growth of 19%, rounding out a good year with a record number of CORI placements in the quarter. Full year installations came in a little behind our target, mainly from a delayed ramp-up in the slower China capital environment, but the broad adoption picture is very positive and running ahead of our Recon share position.

其他重建業務的收入成長了 19%，本季 CORI 安置數量創歷史新高，為這一年畫上了圓滿的句號。全年安裝量略低於我們的目標，主要是由於中國資本環境放緩導致延遲增長，但廣泛的採用情況非常積極，並且領先於我們的 Recon 份額位置。

Utilization hit a new high in the quarter, building on the over 25% of U.S. knees being placed with robotics at the end of Q3. We're bringing CORI to the full range of surgical settings from ASCs to teaching institutions. And we see customers committing in scale with around 1/3 of our new installations in the U.S. coming as part of multimillion unit deals.

繼第三季末超過 25% 的美國膝蓋接受了機器人治療之後，本季的使用率再創新高。我們將 CORI 引入從 ASC 到教學機構的各種外科環境。我們看到客戶做出了大規模承諾，我們在美國的新安裝中約有 1/3 是數百萬單位交易的一部分。

And that's all underpinned by CORI being the most versatile system on the market, supporting a range of surgeon preferences and a broad suite of procedures. And if you remember, in '23, we added a new solution -- the sole solution to give surgeons a choice between milling and cutting for the first time with robotics. We added unique functionality with the digital tensioner, enabling them to measure soft tissue tension before cutting the bone.

CORI 是市場上最通用的系統，可支援各種外科醫生偏好和廣泛的手術，這一切都為這一切奠定了基礎。如果你還記得，在 23 年，我們添加了一個新的解決方案——這是外科醫生第一次使用機器人在銑削和切割之間進行選擇的唯一解決方案。我們為數位張緊器添加了獨特的功能，使他們能夠在切割骨頭之前測量軟組織張力。

And we added revision indication, which is not available on any other major robotics platform. And of course, there's more coming in 2024, including supporting both image-free and image-based planning as options. And it's clear that CORI has a strong runway of growth ahead.

我們還添加了修訂指示，這在任何其他主要機器人平台上都是不可用的。當然，2024 年還會有更多功能推出，包括支援無影像和基於影像的規劃作為選項。很明顯，CORI 未來有強勁的成長道路。

And Trauma and Extremities continues to play an important part in the Orthopaedics growth story. Revenue grew by 5.8% in Q4 with double-digit growth in the U.S., reflecting the continued ramp-up of the EVOS plating system following improved capital product availability and capital deployments earlier in the year. EVOS can be a multiyear growth opportunity and we're adding a further driver in extremities with the full U.S. commercial launch of the AETOS shoulder system announced earlier in the month.

創傷和四肢繼續在骨科發展故事中發揮重要作用。第四季營收成長 5.8%，其中美國實現兩位數成長，反映出今年稍早資本產品可用性和資本部署改善後 EVOS 電鍍系統的持續成長。 EVOS 可能是一個多年的成長機會，隨著本月稍早宣布的 AETOS 肩部系統在美國全面商業化推出，我們正在為四肢領域增添進一步的推動力。

As you know, Sports Medicine is a very attractive area of our portfolio. The steady flow of innovation and improving product availability have generated consistently high level of growth for many years. The business delivered underlying revenue growth of 7.1% in the quarter. Excluding China, where we faced a headwind ahead of VBP, Sports Medicine and ENT grew 8.7%. Within Sports Medicine, Joint Repair grew 8.8% in the quarter. And if we strip out China, growth would have been 12%.

如您所知，運動醫學是我們投資組合中非常有吸引力的領域。穩定的創新和不斷提高的產品可用性帶來了多年來持續的高水準成長。該業務本季的基本收入增長了 7.1%。排除中國（我們在 VBP 之前面臨阻力），運動醫學和耳鼻喉科增加了 8.7%。在運動醫學領域，關節修復本季成長了 8.8%。如果我們剔除中國，成長率將為 12%。

Our REGENETEN Bioinductive Implant was the largest growth driver across the sports portfolio, and will remain a key focus in 2024 with increasing market penetration and the development of new applications.

我們的 REGENETEN 生物感應植入物是整個運動產品組合中最大的成長動力，隨著市場滲透率的提高和新應用的開發，該產品仍將是 2024 年的重點關注點。

We also added a new growth opportunity with the acquisition of CartiHeal, which brings the AGILI-C cartilage repair implant into Smith & Nephew. This is a novel treatment for osteochondral lesions that promotes natural regeneration of the cartilage and restoration of the underlying bone. It has a broad indication, including the previously unaddressed population with lesions in knees with mild to moderate arthritis, as well as the approximately 700,000 patients that receive cartilage repair annually in the U.S.

我們也透過收購 CartiHeal 增加了新的成長機會，將 AGILI-C 軟骨修復植入物帶入施樂輝 (Smith & Nephew)。這是一種針對骨軟骨損傷的新型治療方法，可促進軟骨的自然再生和下方骨骼的恢復。它具有廣泛的適應症，包括以前未解決的輕度至中度關節炎的膝蓋損傷人群，以及美國每年約 70 萬名接受軟骨修復的患者。

And importantly, the product is backed by outstanding clinical evidence and is a great fit for our portfolio. China VBP will be a headwind in 2024. The tender process is now complete, and we expect implementation in the second quarter of 2024. For the year as a whole, we expect around a 5 percentage point headwind to growth in Sports Medicine joint repair.

重要的是，該產品有出色的臨床證據支持，非常適合我們的產品組合。中國VBP將在2024年成為逆風。招標程序現已完成，我們預計在2024年第二季度實施。全年來看，我們預計運動醫學關節修復的增長將逆風約5個百分點。

Arthroscopic enabling technologies revenue grew 3.7% underlying, with good growth from COBLATION resection range and patient positioning portfolio, and the China volumes returning to a more normal level after a slow Q3. As we expected, demand growth in ENT continued to moderate in Q4 as we lap some of the COVID recovery -- post-COVID recovery, shall I say. As a result, ENT revenue grew 10.7% led by our tonsil and adrenal business, which represents a return to more normalized procedure volumes.

關節鏡使能技術收入基本增長了 3.7%，COBLATION 切除範圍和患者定位產品組合實現了良好增長，而且中國銷量在經歷了第三季度的緩慢增長後恢復到了更正常的水平。正如我們預期的那樣，隨著我們經歷了一些新冠疫情復甦——我應該說是新冠疫情後的復甦，第四季度耳鼻喉科的需求增長繼續放緩。因此，在我們的扁桃體和腎上腺業務的帶動下，耳鼻喉科收入增加了 10.7%，這代表手術量已恢復到更標準化的狀態。

And finally, Advanced Wound Management delivered underlying revenue growth of 7.8% in the quarter. Advanced Wound Care revenue grew 1.4%, primarily driven by our foam dressing and infection management portfolio, both of which grew mid to high single digit.

最後，高階傷口管理在本季度實現了 7.8% 的基本收入成長。高級傷口護理收入成長 1.4%，主要由我們的泡棉敷料和感染管理產品組合推動，兩者均實現中等到高個位數成長。

Bioactives growth of 12.5% was due to a very strong quarter for SANTYL following the temporary delays to shipments we saw in the third quarter after the manufacturing transfer to Fort Worth. The rebound in Q4 included some stocking above normal levels, so you should expect Bioactive will see significantly lower growth rates in Q4 2024 as the effect unwinds.

生物活性物質成長 12.5% 是由於 SANTYL 在第三季生產轉移到沃斯堡後出現了暫時的出貨延遲，導致該季度表現強勁。第四季度的反彈包括一些庫存高於正常水平，因此您應該預計，隨著影響的解除，Bioactive 在 2024 年第四季的成長率將顯著降低。

Finally, the ongoing implementation of our Advanced Wound Devices Acceleration Plan is reflected in the underlying revenue growth of 14.9%, with double-digit growth from both our traditional platform, RENASYS, and our single-use PICO.

最後，我們先進傷口設備加速計畫的持續實施反映在 14.9% 的基礎收入成長中，我們的傳統平台 RENASYS 和一次性 PICO 都實現了兩位數的成長。

The outlook for our wound business is strong. We have a good position in what is an underpenetrated market and a high-growth market, with the broadest portfolio of products and #1 or 2 positions in each segment and geography. We believe we're positioned to move the growth rate higher in the coming years, including through gaining share in negative pressure on biologics, digital solutions to support clinicians in product selection, and demonstrating the value of our existing platform by using our broad commercial reach to build awareness of our clinical evidence.

我們的傷口業務前景看好。我們在滲透率不足的市場和高成長市場中佔據有利的地位，擁有最廣泛的產品組合，並且在每個細分市場和地區都排名第一或第二。我們相信，我們有能力在未來幾年提高成長率，包括透過在生物製劑負壓領域獲得份額、支持臨床醫生選擇產品的數位解決方案，以及利用我們廣泛的商業影響力展示我們現有平台的價值提高對我們臨床證據的認識。

Now I'll move to the full year financials. And to bring all of these together, for the full year, revenue was $5.5 billion, up 7.2% versus 2022 on an underlying basis, which was ahead of our guidance, and up 6.4% on a reported basis. Performance was broad-based with all 3 reporting segments delivering growth above our midterm target for the whole group.

現在我將轉向全年財務狀況。將所有這些綜合起來，全年收入為 55 億美元，比 2022 年基本增長 7.2%，超出了我們的指導，按報告增長 6.4%。業績基礎廣泛，所有 3 個報告部門的成長均高於我們整個集團的中期目標。

As you can see in the chart, Orthopedics grew 5.7% for the year. Sports Medicine and ENT grew 10.9%. And AWM grew 6.4%.

正如您在圖表中看到的那樣，骨科今年成長了 5.7%。運動醫學和耳鼻喉科增加了10.9%。 AWM 成長了 6.4%。

Now I'll move to the summary P&L, where I'll expand on some of the comments in the next few slides -- on key elements in the next few slides. The underlying gross profit was $3.9 billion with a gross margin of 70.7%, which is a decrease of 30 basis points. Raw materials inflation was clearly a key headwind with offsets from price increases across the portfolio and productivity measures in manufacturing and procurement.

現在，我將轉向總結損益表，我將在接下來的幾張投影片中詳細闡述一些評論——接下來的幾張投影片中的關鍵要素。基礎毛利為39億美元，毛利率為70.7%，下降30個基點。原物料通膨顯然是一個主要阻力，抵消了整個投資組合價格上漲以及製造和採購生產力指標的影響。

Trading profit was $970 million, an increase of $69 million, with positive leverage across operating expenses resulting in 20 basis points of trading margin expansion to 17.5% for the full year, again, in line with our guidance. While R&D was down on a reported basis, investment in constant currency continued to grow.

交易利潤為 9.7 億美元，增加 6,900 萬美元，營運費用的正槓桿作用導致全年交易利潤率擴大 20 個基點，達到 17.5%，再次符合我們的指導。儘管研發支出以報告計算下降，但以固定匯率計算的投資持續成長。

On Slide 13 shows a more detailed bridge explaining the components of the trading margin expansion. As you can see, we absorbed some major macroeconomic headwinds in the year. I already mentioned continued high input cost inflation, which cost us around 130 basis points of margin. In addition, we had significant transactional FX headwinds of 120 basis points. And that arose from the fact we have a higher share of our COGS in U.S. dollar than in our revenue. And so the U.S. dollar strength in 2022 resulted in a P&L headwind that was delayed into 2023 by our hedging program.

投影片 13 顯示了一個更詳細的橋樑，解釋了交易保證金擴張的組成部分。正如您所看到的，我們今年吸收了一些主要的宏觀經濟阻力。我已經提到持續的高投入成本通膨，導致我們損失了約 130 個基點的利潤。此外，我們還面臨 120 個基點的重大外匯交易阻力。這是因為我們以美元計算的銷貨成本所佔的比例高於我們的收入。因此，2022 年美元走強導致盈虧逆風，而我們的對沖計畫將其推遲到 2023 年。

But we were able to offset around 160 basis points with our productivity savings, including those coming through the 12-Point Plan. And a number of moving parts add up to the remaining 110 basis points shown on the revenue leverage and other, with volume leverage and price increases more than offsetting higher labor costs.

但我們能夠透過生產力節省（包括透過 12 點計畫實現的節省）抵消大約 160 個基點。收入槓桿和其他指標上顯示的剩餘 110 個基點是由許多變動因素加起來的，數量槓桿和價格上漲足以抵消勞動成本上升的影響。

I'd also like to highlight the progress we made as 2023 progressed. The second half trading margin of 19.6% represented 200 basis points of expansion over the prior, with leverage on all expense lines in the P&L. And I'm encouraged by that close to the year, which shows that we can drive significant expansion through gross leverage, better productivity and cost discipline.

我還想強調一下我們在 2023 年的進展。下半年交易利潤率為 19.6%，較上年同期擴大 200 個基點，損益表中所有費用項目均採用槓桿。接近年底，我感到鼓舞，這表明我們可以透過總槓桿率、更好的生產力和成本控制來推動顯著擴張。

Now on Slide 14, looking further down the P&L. Adjusted earnings per share grew by 1.3% to $0.828. That's below the growth in trading profit due to increased financial expense, reflecting both higher interest rates and the negative associates contribution in the year, while the trading tax rate was broadly unchanged from 2022 at 16.2%. Basic earnings per share grew 18% to $0.302.

現在在投影片 14 上，進一步查看損益表。調整後每股收益成長 1.3%，達到 0.828 美元。這低於由於財務費用增加而導致的交易利潤增長，反映出當年利率上升和聯營公司的負貢獻，而交易稅率與 2022 年相比基本保持不變，為 16.2%。每股基本收益成長 18%，達到 0.302 美元。

And moving to the cash flow statement. We generated trading cash flow of $635 million in the full year, with trading cash conversion of 65%. The increase over 2022 was primarily driven by significantly reduced working capital outflow. And this was mainly as a result of improving inventory trends as the year progressed, and I'll come back to that in a moment.

並轉向現金流量表。全年交易現金流為6.35億美元，交易現金轉換率為65%。 2022 年的成長主要是因為營運資本外流大幅減少。這主要是由於隨著時間的推移，庫存趨勢有所改善，我稍後會回到這個問題。

There was a partial offset from higher CapEx as we accelerated instrument set deployments, both for established products and to support our launches. And we expect CapEx to remain at a level of around 8% sales in 2024. We're committed to further improve trading cash flow going forward, so it was encouraging to see a return to more normal level of cash conversion in the second half of '23.

由於我們加快了儀器組的部署，無論是針對已建立的產品還是為了支援我們的發布，資本支出的增加部分抵消了這一影響。我們預計 2024 年資本支出將保持在銷售額 8% 左右的水平。我們致力於進一步改善未來的交易現金流，因此看到下半年現金轉換恢復到更正常的水平是令人鼓舞的'23。

And on the free cash flow, restructuring, acquisition, legal and other outflows largely relate to restructuring under the 12-Point Plan and the EU MDR compliance cost. And as you'll see in the technical guidance, we expect both of those items to be significantly lower in 2024, with the MDR project coming to an end in the first half.

在自由現金流方面，重組、收購、法律和其他流出很大程度上與十二點計畫下的重組和歐盟MDR合規成本有關。正如您將在技術指南中看到的那樣，我們預計這兩個項目將在 2024 年顯著降低，MDR 專案將在上半年結束。

Now I'll cover the inventory. And as you can see that the long-term upward trends has now stabilized and started to come down later in the year. Whilst there was still a cash outflow from inventory for the full year, inventory fell slightly in absolute dollars in the second half and DSI also fell to finish broadly flat compared to the start of the year after several years of increase.

現在我將介紹庫存。正如您所看到的，長期上升趨勢現已穩定並在今年稍後開始下降。儘管全年仍有庫存現金流出，但下半年庫存以絕對美元計算略有下降，DSI 在經歷了幾年的增長後也下跌，與年初基本持平。

The second half improvement came across every business unit. Orthopedics is where inventory build has been a longer-term challenge, as you know, both from supply and demand being disconnected, and also we're be building launch capital in Trauma. And addressing this has been a specific focus of the 12-Point Plan, particularly with moving manufacturing volume and mix back into line. For 2023, we were able to bring Orthopedics DSI down by 5% for the year as a whole, even as we continued to invest behind the rollout of EVOS and AETOS.

下半年每個業務部門都取得了進步。如您所知，骨科領域的庫存建設一直是長期挑戰，因為供應和需求都脫節，而且我們正在創傷領域建立啟動資金。解決這個問題是 12 點計畫的具體重點，特別是使製造量和組合恢復正常。 2023 年，儘管我們繼續投資推出 EVOS 和 AETOS，但我們仍然能夠將骨科 DSI 全年降低 5%。

Pulling all of that together, we are increasingly confident that inventory days across the organization have now turned and we expect ongoing improvements in the coming years.

綜合所有這些，我們越來越有信心整個組織的庫存天數現在已經扭轉，我們預計未來幾年將持續改善。

And to conclude on the financials, I'll cover net debt. Net debt ended the year at $2.8 billion, which is an increase of $241 million. The leverage ratio finished at 2.1x adjusted EBITDA, which is broadly stable and comfortably within our range of 2 to 2.5x.

最後，我將討論淨債務。年底淨債務為 28 億美元，增加了 2.41 億美元。槓桿率最終調整後 EBITDA 為 2.1 倍，基本上穩定，在我們的 2 至 2.5 倍範圍內。

In 2023, we refinanced our $1 billion revolving credit facility, which now matures in 2028, maintaining our strong funding position. And in 2024, we have just over $400 million of private placement debt maturing with the majority in November.

2023 年，我們對 10 億美元的循環信貸額度進行了再融資，該額度現已於 2028 年到期，從而保持了我們強勁的融資地位。到 2024 年，我們將有超過 4 億美元的私募債務到期，其中大部分將於 11 月到期。

And with that, I'll hand back to Deepak.

接下來，我將把問題交還給迪帕克。

Great. Thank you, Anne-Francoise. So I'll now cover our outlook for 2024. So we're guiding for underlying revenue growth of 5% to 6%. So within that, you should expect further progress in Orthopedics driven by improvements in supply and execution improvement, especially in U.S. Recon, and the continued rollout of our key growth products. We also expect to continue our strong performance in sports outside of China and in Advanced Wound Management. VBP for some sports medicine products will be the main headwind with close to 2% of our Group sales that are within scope, and the implementation, as Anne-Francoise mentioned, expected in the second quarter.

偉大的。謝謝你，安妮-弗朗索瓦絲。現在，我將介紹我們對 2024 年的展望。因此，我們指導基本收入成長 5% 至 6%。因此，在供應和執行改進（尤其是美國偵察）以及我們關鍵成長產品的持續推出的推動下，您應該期待骨科領域取得進一步進展。我們也期望在中國以外的體育運動和先進傷口管理領域繼續保持強勁表現。一些運動醫學產品的 VBP 將是主要阻力，我們集團銷售額的近 2% 在範圍內，並且正如 Anne-Francoise 提到的那樣，預計在第二季度實施。

Overall, this amounts to another strong year expected for the portfolio as a whole with revenue growth continuing above historical levels even after the effects of Sports VBP. There's also phasing to consider through the year, with a number of factors driving slower growth in the first quarter. These include a strong U.S. comparator from higher-than-normal surgery volumes than the start of 2023 and a slower first quarter for Bioactives as the strong SANTYL sales at the end of 2023 unwinds.

總體而言，即使在體育 VBP 的影響之後，整個投資組合預計將迎來強勁的一年，收入成長將繼續高於歷史水平。全年還要分階段考慮，有許多因素導致第一季成長放緩。其中包括美國 2023 年初手術量高於正常水平的強勁對比，以及隨著 2023 年底 SANTYL 強勁銷售的結束，生物活性藥物第一季放緩。

In addition, trading days will initially be a headwind before benefiting growth later in the year. There'll be one fewer trading day in Q1, then one additional day in Q2, and 2 additional days in Q4, for a total of 2 extra days for the full year.

此外，交易日最初將是一個阻力，然後在今年晚些時候有利於成長。第一季將減少 1 個交易日，第二季增加 1 天，第四季將增加 2 天，全年總共增加 2 天。

We also expect meaningful trading profit -- trading margin expansion to reach at least 18% for the year. There are a lot of moving parts behind that, and the chart on Slide 19 shows the major components of the bridge. Macro headwinds should be lower than in 2023, but have not gone away. Input cost inflation will continue to be a headwind, much as it was in 2023, although the transactional FX will be a substantially smaller effect at around 30 basis points. China Sports Medicine VBP will be an additional factor this year, and we expect around 70 basis points of headwind from lower pricing before any cost and revenue offsets.

我們也預計有意義的交易利潤——今年交易利潤率將擴大至少達到 18%。這背後有許多活動部件，幻燈片 19 上的圖表顯示了橋樑的主要部件。宏觀阻力應低於 2023 年，但尚未消失。投入成本通膨將繼續成為不利因素，就像 2023 年一樣，儘管交易性外匯的影響將小得多，約為 30 個基點。中國運動醫學VBP將是今年的另一個因素，我們預計在任何成本和收入抵消之前，較低的定價將帶來約70個基點的阻力。

However, we expect to more than offset all of those headwinds, and that will come from the combination of productivity improvements under the 12-Point Plan, including the restructuring program we had presented a year ago, and positive operating leverage from our continued higher revenue growth than in the past.

然而，我們預計將抵消所有這些不利因素，而這將來自十二點計劃下生產力的提高，包括我們一年前提出的重組計劃，以及我們持續增加的收入帶來的積極營運槓桿比過去增長。

As in prior years, we expect the trading margin to be higher in the second half than in the first half, although with a less marked step-up than in 2023. Our midterm margin target of at least 20% in 2025 is unchanged. And the progress we expect for 2024 will keep us on track.

與往年一樣，我們預計下半年的交易利潤率將高於上半年，但增幅不及 2023 年。我們的 2025 年至少 20% 的中期利潤率目標保持不變。我們預計 2024 年的進展將使我們保持在正軌上。

There's clearly still a further step-up to come. And as we've said before, 2025 is the biggest margin improvement year of our plan. There are more headwinds than when we set this goal 18 months ago, particularly China VBP, transactional FX and input cost inflation that has stayed higher for longer.

顯然還有進一步的進步。正如我們之前所說，2025 年是我們計畫中利潤率改善最大的一年。與我們 18 個月前設定這一目標時相比，存在更多阻力，特別是中國 VBP、交易性外匯和投入成本通膨在較長時間內保持在較高水平。

However, we're also a much stronger and determined organization than we were as a result of the 12-Point Plan. There are a number of offsetting positives to consider.

然而，由於 12 點計劃，我們也成為一個比我們更強大、更堅定的組織。有許多抵消的正面因素需要考慮。

First, the incremental impact of input cost increases should reduce. At the same time, the operating leverage from a higher level of growth than the past should continue. So the net of operating leverage, OpEx savings and input cost inflation should be similar to the pre-VBP and pre-FX effects that we benefit from in 2024.

首先，投入成本增加的增量影響應該會減少。同時，經營槓桿比過去更高的成長水準應該會持續下去。因此，營運槓桿、營運支出節省和投入成本通膨的淨值應該與我們在 2024 年受益的 VBP 之前和外匯之前的影響類似。

On top of that, one of the major headwinds for 2024 will fall away and will be replaced by an additional tailwind. Sports Medicine VBP will largely annualized, and so not to be a meaningful incremental effect in 2025. And then in 2025, we should instead see the largest block of our cost savings as the bulk of the manufacturing savings flow through into our P&L. The work on our footprint that underpins those savings is well advanced.

最重要的是，2024 年的主要阻力之一將消失，取而代之的是額外的順風。運動醫學VBP 將在很大程度上按年計算，因此到2025 年不會產生有意義的增量效應。然後到2025 年，我們應該會看到成本節省的最大部分，因為大部分製造節省都會流入我們的損益表。支持這些節省的我們的足跡工作已經取得了很大進展。

Putting all of that together, the pre-VBP, pre-FX margin expansion in 2024 can broadly repeat in 2025, with the additional manufacturing savings further lifting the trading margin and continuing beyond 2025.

綜上所述，2024 年 VBP 之前、外匯之前的利潤率擴張可能會在 2025 年大體重複，額外的製造業節省將進一步提升交易利潤率，並持續到 2025 年之後。

As you know, the 12-Point Plan is central to how we're improving our overall performance. We'll reach the 2 years duration in the second half of this year. So while we've made a lot of progress, there is still more to come. What I'd like to do is take a step back and look at the overall picture since the plan's inception. On a plan of this many initiatives, there'll always be elements moving at different speeds. Some work streams just take longer by nature and others will meet their milestones a little faster or slower than envisaged at the outset. Taken as a whole, though, we're clearly on track for what we set out to do.

如您所知，12 點計畫對於我們如何提高整體績效至關重要。今年下半年我們將達到兩年的期限。因此，雖然我們已經取得了巨大進展，但仍有更多進展。我想做的是退後一步，看看自該計劃啟動以來的整體情況。在包含如此多舉措的計劃中，總是會有一些元素以不同的速度移動。有些工作流程本質上需要更長的時間，而有些工作流程會比一開始的設想更快或更慢地達到里程碑。不過，總體而言，我們顯然正在朝著既定目標邁進。

There are now multiple positive trends in Orthopedics. On the operations side, implant availability has dramatically improved since the start of the plan and has now closed more than 95% of the gap between the trough level and our goal. We're also more effectively deploying and turning capital, with set turns at year-end more than 20% higher than at the start of the plan.

現在骨科領域出現了多種正面的趨勢。在營運方面，自計劃啟動以來，植體可用性已顯著改善，目前已縮小了谷值水平與我們目標之間 95% 以上的差距。我們也更有效地部署和周轉資本，年底的固定週轉率比計劃開始時高出 20% 以上。

Commercially, Trauma and Extremities has accelerated to become an important growth driver for the whole business unit. CORI placements and utilization have inflected upwards. And our OUS Recon business has now accelerated to be ahead of the market.

在商業上，創傷和四肢已加速成為整個業務部門的重要成長動力。 CORI 的安置和利用率有所上升。我們的 OUS Recon 業務現已加速領先市場。

There's more to do in U.S. Recon, and I'll come back to that in a moment, but we're also making good progress in productivity. Inventory days and cash conversion improved through 2023. And as Anne-Francoise set out, we turned the corner and we're on a positive trajectory by year-end with Orthopaedics DSI down 5% year-on-year after a period of several years of increases.

美國偵察還有更多工作要做，我稍後會回來討論這一點，但我們在生產力方面也取得了良好進展。到2023 年，庫存週轉天數和現金週轉率均有所改善。正如Anne-Francoise 所設定的那樣，我們已經渡過難關，到年底我們將走上積極的軌道，經過幾年的時間，骨科DSI年比下降5%的增加。

Pricing excellence is another success area with positive realized pricing across the business units since the second half of 2022. And we've been doing the hard work on manufacturing optimization, the planned facility closures in Tuttlingen, Beijing and Lyon now underway.

卓越定價是另一個成功領域，自 2022 年下半年以來，各業務部門實現了積極的定價。我們一直在努力優化製造，圖特林根、北京和里昂的工廠關閉計劃目前正在進行中。

The third pillar of the 12-Point Plan is building on the performance of our Sports Medicine and Advanced Wound Management business units. These are also developing well. We've seen early acceleration in the focus area of negative pressure wound therapy and we've more than tripled the pace of cross-unit business deals in ASCs. There is a new headwind with Sports Medicine VBP, which we did not expect at the start of the plan, and we'll need to work through that in 2024.

12 點計畫的第三個支柱是建立在我們的運動醫學和高階傷口管理業務部門的表現之上。這些也都發展得很好。我們已經看到負壓傷口治療重點領域的早期加速，並且我們將 ASC 跨部門業務交易的速度提高了兩倍以上。運動醫學 VBP 面臨新的阻力，這是我們在計劃開始時沒有預料到的，我們需要在 2024 年解決這個問題。

Improving execution in orthopedics is still an important part of the story. As I set out, there is good progress in much of the business, and other areas where there is more work to do. In total, subsegments representing around 60% of Orthopaedics sales are now growing at or above the peer average based on the second half of the year. Much of that is attributable to the 12-Point Plan.

提高骨科的執行力仍然是故事的重要組成部分。正如我所闡述的，大部分業務都取得了良好進展，而其他領域還有更多工作要做。總體而言，佔骨科銷售額 60% 左右的子細分市場目前的成長速度等於或高於下半年的同業平均值。這在很大程度上要歸功於十二點計畫。

We're starting to recover the share that we had lost in EMEA recon, supported by better implant availability. And we have a dedicated initiative to drive CORI that is producing growth ahead of what we can see from peers.

在更好的植入可用性的支持下，我們開始恢復在 EMEA 偵察中失去的份額。我們有一個專門的計劃來推動 CORI，其成長速度領先於同行。

Trauma and Extremities performance reflects much improved consumables and capital availability and has become a new growth story in our portfolio, driven by the EVOS plating system and more recently, AETOS shoulder.

創傷和四肢的表現反映了耗材和資本可用性的顯著改善，並在 EVOS 電鍍系統和最近的 AETOS 肩部的推動下，成為我們產品組合中新的成長故事。

U.S. recon robotics is growing as a whole and has returned to its 2019 sales level. Even so, we're still not satisfied with our U.S. recon growth, particularly in knees. That remains a key focus in 2024 as we continue through the final year of the 12-Point Plan.

美國偵察機器人整體正在成長，並已恢復到2019年的銷售水準。即便如此，我們仍然對美國偵察兵的成長不滿意，特別是在膝蓋方面。隨著我們繼續實施 12 點計畫的最後一年，這仍然是 2024 年的關鍵焦點。

A positive sign is that operational KPIs continue to develop favorably. By quarter-end, overall implant availability was almost at our goal of being in line with industry standards, including in some previously softer categories such as OXINIUM with increasingly limited areas still trailing.

一個正面的跡像是，營運 KPI 持續向好發展。到季度末，整體植體可用性幾乎達到了我們符合行業標準的目標，包括一些以前較軟的類別，例如 OXINIUM，但面積越來越有限，但仍然落後。

On the capital side, hip set availability has now reached our target level for the first time in the life of the plan. Knee sets are improving, but still have further to go with our KPI of instrument orders filled now at the level where it was for hips back in May of 2023. The focus now is to convert that operational improvement into revenue growth, and 3 of our priorities for doing that are listed on the slide.

在資本方面，臀部套件的可用性現在已在計劃生命週期中首次達到我們的目標水平。膝蓋套件正在改善，但與我們目前完成的器械訂單KPI 相比，仍處於2023 年5 月髖部訂單的水平，還有進一步的進步。現在的重點是將營運改善轉化為收入成長，我們的3個投影片中列出了這樣做的優先事項。

Firstly, we need to complete the improvement of knee set deployment up to our target level, and drive greater utilization of both knee and hip sets that are out there. There is a process we've already followed successfully in trauma and OUS recon. Set availability is getting better, so from here, it's a matter of executing our growth plans while maintaining the discipline around capital efficiency.

首先，我們需要完成膝關節部署的改進，達到我們的目標水平，並推動現有膝關節和髖關節的更大利用。我們在創傷和 OUS 偵察中已經成功遵循了一個流程。片場可用性正在變得越來越好，因此從這裡開始，問題是執行我們的成長計劃，同時保持資本效率的紀律。

Secondly, we need to drive consistent commercial excellence. Part of that is continuing to advance our product milestones through the 12-Point Plan. But the cultural and structural changes we've implemented in the last year are also critical. We expected some initial sales rep turnover after the incentive changes, and that did play out in some areas as the year progressed. We prepared for that with a recruitment pipeline already in place and expect the new growth-oriented structures should increase in benefit as they become a settled way of doing business.

其次，我們需要推動持續的商業卓越。其中一部分是透過 12 點計畫繼續推進我們的產品里程碑。但我們去年實施的文化和結構變革也至關重要。我們預期激勵措施改變後，最初的銷售代表會出現一些流動，隨著這一年的進展，這種情況確實在某些領域發生了。我們為此做好了準備，已經建立了招募管道，並預計新的以成長為導向的結構將增加效益，因為它們成為一種固定的經營方式。

Finally, we need to continue to drive our long-term differentiators at the same time, particularly CORI. We now have the most versatile platform on the market, and as we continue to build our installed base and utilization that will both reinforce our relationships with existing customers and help us with new business.

最後，我們需要同時繼續推動我們的長期差異化優勢，特別是 CORI。我們現在擁有市場上最通用的平台，隨著我們繼續建立我們的安裝基礎和利用率，這將加強我們與現有客戶的關係並幫助我們開展新業務。

More broadly, I'm pleased with what Smith & Nephew is already delivering in terms of growth. 7.2% revenue growth in 2023 is well above our historical average, even taking into account the stronger recon market. This achievement is in line with our aim to be a consistently higher growth company.

更廣泛地說，我對施樂輝在成長方面已經取得的成果感到滿意。即使考慮到更強勁的偵察市場，2023 年 7.2% 的營收成長也遠高於我們的歷史平均值。這項成就符合我們成為一家持續高速成長的公司的目標。

When I look at what's behind the acceleration, it's from sustainable drivers and is aligned with our strategy. We talked at our November Meet the Management event about the central role of innovation. Through internal R&D and M&A, we're delivering successive waves of technology, including new legs for growth, for products already in the market, and further launches at the beginning of their life cycles.

當我審視加速背後的原因時，我發現它來自永續的驅動因素，並且與我們的策略一致。我們在 11 月的管理層見面活動中討論了創新的核心角色。透過內部研發和併購，我們正在提供連續不斷的技術浪潮，包括為市場上已有產品提供新的成長動力，並在其生命週期開始時進一步推出。

In 2023, the innovation benefit was clearly visible again. Almost 3.5 points or close to half of our growth came from products launched in the last 5 years. That absolute contribution is on its own enough to take us to above that for previous average even before the contributions of our existing portfolio or M&A. It's important that we maintain that momentum of innovation.

2023年，創新效益再次清晰可見。我們的成長近 3.5 個百分點或近一半來自過去 5 年推出的產品。即使在我們現有投資組合或併購的貢獻之前，這項絕對貢獻本身就足以使我們高於先前的平均水準。保持創新勢頭非常重要。

It's not all about the dollar spend, but where they're spent and how the technology is supported with clinical data. We've continued to develop our key growth opportunities in recent months, including new evidence and launches on our existing products and bringing forward the next wave of devices.

問題不在於金錢支出，而在於金錢花在哪裡以及臨床數據如何支持科技。近幾個月來，我們繼續開發我們的關鍵成長機會，包括新的證據和現有產品的發布以及推出下一波設備。

Firstly, we added new evidence for REGENETEN, publishing the final results of a randomized controlled trial that confirmed the promising interim signal from 2022. The study found that, at 1 year, medium and large full thickness rotator cuff tears treated with REGENETEN had a statistically significant 3-fold reduction in retail rate compared to the control arm, with no difference in the number of serious or minor complications.

首先，我們為REGENETEN 增加了新的證據，發布了一項隨機對照試驗的最終結果，證實了2022 年以來有希望的中期信號。研究發現，在1 年時，使用REGENETEN 治療的中型和大型全厚度肩袖撕裂具有統計學意義與對照組相比，零售率顯著降低了 3 倍，而嚴重或輕微併發症的數量則沒有差異。

This remains a multiyear growth opportunity for Smith & Nephew with only single-digit penetration of rotator cuff procedures today. Bringing compelling clinical evidence like this is a key element of our plans to drive market access and increase that penetration globally.

對於目前肩袖手術的滲透率僅為個位數的施樂輝來說，這仍然是一個多年的成長機會。提供此類令人信服的臨床證據是我們推動市場准入和提高全球滲透率計畫的關鍵要素。

CORI is another platform where we can keep adding further growth drivers, and we showcase additional functionality in AAOS in '24, it's version 2 of the RI Knee robotic software. This provides AI-powered reference values to guide planning alongside surgeons' preferences.

CORI 是我們可以不斷添加進一步增長驅動力的另一個平台，我們在 24 年展示了 AAOS 中的附加功能，它是 RI Knee 機器人軟體的第 2 版。這提供了人工智慧驅動的參考值，以根據外科醫生的偏好指導規劃。

As I said, our innovation delivery is about successive waves of technology. We've also advanced 2 key devices from our next wave, acquiring CartiHeal's AGILI-C and announcing the full commercial availability of the AETOS total shoulder at AAOS. These add important growth drivers to Sports Medicine, Joint Repair and to Extremities. And both enable us to access significant new markets while leveraging our existing commercial organizations.

正如我所說，我們的創新交付涉及連續不斷的技術浪潮。我們還改進了下一波浪潮中的 2 個關鍵設備，收購了 CartiHeal 的 AGILI-C 並宣布 AETOS 全肩肩在 AAOS 上全面商業化。這些為運動醫學、關節修復和四肢增加了重要的成長動力。兩者都使我們能夠在利用現有商業組織的同時進入重要的新市場。

And importantly, the contribution of innovation will come across our portfolio. This is a slide we've shown before, and how the key projects from our current generations of innovation align with our reporting segments. We've highlighted 5 areas where we expect to grow above historical levels in the coming years with the innovation as a key driver. Those are Trauma and Extremities, Other Recon, ENT and Sports Medicine, excluding the headwind as we move through VBP, and of course, Advanced Wound Management. Taken as a whole, around 50% of Group revenue in these areas -- is in these areas with an outlook for higher growth.

重要的是，創新的貢獻將體現在我們的產品組合中。這是我們之前展示過的幻燈片，展示了我們當前幾代創新的關鍵項目如何與我們的報告部門保持一致。我們重點介紹了 5 個領域，預計未來幾年這些領域的成長將超過歷史水平，而創新將成為關鍵驅動力。這些是創傷和四肢、其他偵察、耳鼻喉科和運動醫學，不包括我們在 VBP 中遇到的困難，當然還有高階傷口管理。總體而言，集團約 50% 的收入來自這些領域——這些領域的成長前景較高。

Overall, I'm pleased with our progress in 2023. The portfolio as a whole is performing well with all 3 business units growing very nicely compared to history. And the team is working hard to implement -- to drive improvement in the remaining areas of weakness.

總的來說，我對我們 2023 年的進展感到滿意。整個投資組合表現良好，所有 3 個業務部門與歷史相比都成長得非常好。該團隊正在努力實施，以推動剩餘薄弱領域的改進。

Meeting our financial commitments for the year was important to us. The organization had a heavy lift to deliver in the second half of the year, but we demonstrated what can be done when we put together operating leverage at higher growth, productivity measures and rigorous cost discipline.

履行我們今年的財務承諾對我們來說非常重要。該組織在下半年要實現的任務艱鉅，但我們展示了當我們將更高成長的營運槓桿、生產力措施和嚴格的成本紀律結合起來時可以做什麼。

We have gained momentum and made clear progress in strengthening, accelerating and transforming Smith & Nephew. In 2024, our opportunity will be to build on this, embed and expand execution discipline we've gained through the 12-Point Plan, leverage our commercial model to better meet the needs of customers, and challenge ourselves to achieve greater levels of efficiency and excellence.

我們在強化、加速和轉型 Smith & Nephew 方面取得了勢頭並取得了明顯進展。 2024 年，我們的機會將是在此基礎上，嵌入和擴展我們透過 12 點計畫獲得的執行紀律，利用我們的商業模式更好地滿足客戶的需求，並挑戰自己以實現更高水平的效率和卓越。

So with that, we'll be happy to take your questions.

因此，我們很樂意回答您的問題。

Veronika from Citi. Can you guys hear me?

來自花旗銀行的維羅妮卡。你們聽得到我說話嗎？

I can hear you, Veronika.

我聽見你的聲音，維羅妮卡。

Okay. Fine. Perfect. Three questions for me. The first one is just on the Knees performance. Obviously, in the fourth quarter, it seems like things went a little bit backwards relative to your peers. So just would love to understand exactly what went wrong in Q4 and what you guys are doing about it as you move into 2024. So that's my first question.

好的。美好的。完美的。問我三個問題。第一個是關於膝蓋的表現。顯然，在第四季度，與同業相比，情況似乎有點倒退。因此，我很想了解第四季到底出了什麼問題，以及在進入 2024 年時你們正在採取哪些措施。這是我的第一個問題。

My second question is just on the manufacturing initiatives, and I think you promised, Deepak, that you would give us more this quarter in terms of what exactly is happening and what the expected cost savings are. So if you could elaborate on that just to give us a little bit more insight into what you're shutting down, where you're moving manufacturing to, and how much money that is going to save.

我的第二個問題只是關於製造計劃，我認為迪帕克，您曾承諾，您將在本季度向我們提供更多有關具體情況以及預期成本節省的信息。因此，如果您能詳細說明這一點，只是為了讓我們更深入地了解您要關閉的業務、將製造業轉移到哪裡以及將節省多少錢。

And then my last question, and thank you for your comment on the phasing of growth in 2024, I'm going to ask a follow-up, as you expect, which is the phasing of margins and how you guys are thinking about the margin improvement first half versus the second half. Obviously, bearing in mind the easy comp from H1 last year, but also appreciating that you have the VBP headwinds probably more H1 weighted than 2H weighted.

然後是我的最後一個問題，感謝您對 2024 年分階段增長的評論，正如您所期望的，我將問一個後續問題，即利潤的分階段以及您如何看待利潤上半場比下半場有進步。顯然，要記住去年 H1 的輕鬆對比，但也要意識到 VBP 的逆風可能 H1 的權重比 2H 的權重更大。

U.S. Knees, we'll start with product availability against the backdrop of overall improved -- improving and actually to near target levels overall in terms of life or for the portfolio. U.S. Knees specific SKUs were slow to come, particularly OXINIUM related and the benefits didn't start to flow through until really September -- late September-ish. So that impacted not only replenishment, but also sets.

美國膝蓋，我們將在整體改善的背景下從產品可用性開始——在壽命或投資組合方面實際上已經接近目標水平。美國膝蓋特定的 SKU 來得很慢，尤其是 OXINIUM 相關的，直到 9 月（大約九月底左右）才開始帶來好處。因此，這不僅影響了補給，也影響了套裝。

So set delivery, which we had targeted early in the year, didn't come through into -- really well into Q4. So that impacted our ability to drive new growth. And typically, when you put a set, takes anywhere from 45 to 90 days before those sets start to turn to target levels.

因此，我們在今年年初設定的交付目標並沒有實現——實際上到了第四季。因此，這影響了我們推動新成長的能力。通常，當您放置一組時，這些組需要 45 到 90 天的時間才能開始達到目標水平。

We had expected churn as we implemented performance management -- tighter performance management and incentives. I talked about that in previous forums. It was a bit later in the year than we expected because the first half of the year was -- the market was quite frothy. And so the expected kind of turnover didn't materialize into the second half of the year.

當我們實施績效管理—更嚴格的績效管理和激勵措施時，我們就預料到會出現客戶流失。我在之前的論壇中談到過這一點。今年比我們預期的要晚一些，因為上半年市場泡沫相當豐富。因此，預期的營業額並沒有在今年下半年實現。

So what ended up happening was we had turnover. It came later in the year. Set and replenishment availability was impacted in U.S. Knees. And there's, of course, commercial performance that layered on top. So the combination of all of those effects led to a weaker-than-expected performance in U.S. Knees.

所以最終發生的事情是我們出現了人員流動。它是在今年晚些時候到來的。美國膝蓋的套裝和補貨可用性受到影響。當然，最重要的是商業表現。因此，所有這些影響的結合導緻美國膝蓋的表現弱於預期。

But when I look to the fundamentals of how we work our way out of it, first and foremost, the sets are flowing now. They came later in the year than we expected, but they are flowing. I think we -- the chart that we had showed relatively speaking, where hips are versus knees, right? Hips are pretty much at target levels. We're getting there on knees. Roughly speaking, knees are where hips were kind of May of last year when the hip performance started to turn.

但當我審視我們如何擺脫困境的基本原則時，首先也是最重要的是，現在的情況正在流動。他們的到來比我們預期的要晚，但他們正在流動。我想我們——相對而言，我們展示的圖表是臀部與膝蓋的位置，對吧？臀部幾乎達到目標水準。我們要跪著到達那裡。粗略地說，膝蓋與去年五月臀部的位置差不多，當時臀部的表現開始出現轉變。

So as we go into 2024, we expect the sets that we've got out there. And we've got a much tighter process now in terms of where we allocate those sets. So part of the operational improvements that we've been making right over the last 1.5 years is much tighter discipline around sets, around where we deploy capital. And we're starting to see the benefit of that, right? So where we place sets, those are starting to turn, and we'll expect that to continue into -- as we turn this after.

因此，當我們進入 2024 年時，我們期待我們已經推出的系列。現在，我們在分配這些集合方面有了更嚴格的流程。因此，我們在過去 1.5 年所做的營運改善的一部分是圍繞佈景和我們部署資本的地方更加嚴格的紀律。我們開始看到這樣做的好處，對嗎？因此，在我們放置集合的地方，它們開始轉動，我們預計這種情況會繼續下去——當我們之後轉動它時。

So improved product availability, the rep churn that we'd expected, as we indicated, there's a pipeline. So we're okay in terms of hiring the reps to offset that turnover. And on the back of those factors coming together in '24, I expect to see improved knee performance. So that's your first question.

正如我們所指出的，產品可用性得到了改善，銷售代表流失也達到了我們的預期，有一條管道。因此，我們可以透過僱用銷售代表來抵銷營業額。在 24 年這些因素的綜合作用下，我預期膝蓋的表現將會得到改善。這是你的第一個問題。

Your second question around manufacturing optimization. So we'd always said 2025 was the big year for the benefits of our efforts to bring capacity in line with demand would start to pay off. The steps to get there are optimizing our footprint. I called out Tuttlingen, I called out Lyon, I called out Beijing, are the 3 big factories we announced the closure. They're at various stages of actually being closed and volumes from those being shifted into either Memphis or into Malaysia. So all of these are Orthopedics-related plants, which is where our issue actually is around capacity.

你的第二個問題是關於製造優化的。因此，我們一直說 2025 年是重要的一年，因為我們為滿足需求所做的努力將開始獲得回報。實現這一目標的步驟是優化我們的足跡。我喊出了圖特林根，我喊出了里昂，我喊出了北京，是我們宣布關閉的3家大工廠。它們處於實際關閉的不同階段，並且數量正在轉移到孟菲斯或馬來西亞。所以所有這些都是與骨科相關的工廠，這就是我們的問題實際上是圍繞產能的。

So as those volumes get shifted into those sites, the benefit from a P&L standpoint will start to flow through into 2025. And there's also a balance between Memphis and Malaysia in terms of what gets manufactured there. So there, it's about cost and, of course, resiliency in terms of how we determine which SKUs get manufactured there.

因此，隨著這些產量轉移到這些工廠，從損益角度來看，收益將開始持續到 2025 年。孟菲斯和馬來西亞在生產方面也存在平衡。因此，這涉及成本，當然，也涉及我們如何確定在那裡生產哪些 SKU 的彈性。

The combination of those should yield significant margin benefit. I don't think we've called out exactly the number, but we've -- there's a little block there, you can bring out your rulers and maybe kind of dimensionalize it. But what I want to call out is that is the one big factor that you didn't see in '23, you didn't see in 2024. And we've been pretty consistent in our messaging around that.

這些的結合應該會產生顯著的利潤效益。我不認為我們已經說出了確切的數字，但我們已經——那裡有一個小塊，你可以拿出你的尺子，也許可以對它進行維度化。但我想指出的是，這是你在 23 年沒有看到的一個重要因素，在 2024 年也沒有看到。而且我們在圍繞這一問題傳達的信息方面一直非常一致。

So the third question is around phasing, margin phasing, I'll start off and maybe you can chime in, Anne-Francoise. As you say, easy comps from a margin standpoint for 2023. A lot went into making sure that we overcame that in the second half of 2023. We said we would. I don't think many people believed it. But we've got the results to show for it, right? So we came in bang-on where we said we were going to come in.

所以第三個問題是關於分階段、邊際分階段，我會開始，也許你可以插話，安妮·弗朗索瓦絲。正如你所說，從 2023 年的利潤率角度來看，比較容易。我們做了很多工作來確保我們在 2023 年下半年克服這個問題。我們說過我們會的。我想沒有多少人相信。但我們已經得到了結果，對吧？所以我們就如願以償地來到了我們說要進來的地方。

That said, I would expect '24 to be more of a normalized year in terms of first half margin. To state the obvious, we see -- we will see growth H1 to H1, so '24 to '23. And the step-up between H1 to H2 will be more normalized. So you can kind of go through the history in terms of where the averages are around that. So we expect more of a normalized kind of performance.

也就是說，就上半年利潤率而言，我預計 24 年將更像是正常化的一年。顯而易見的是，我們看到——我們將看到 H1 到 H1 的增長，所以從 24 到 23。 H1 到 H2 之間的提升將更加標準化。因此，您可以根據平均值的位置來回顧歷史。因此，我們期望更多的是標準化的表現。

We called out particular factors. Last year, a lot of it had to do with incentives and commissions that we paid. Some of it, we had calibrated our quota to a certain market assumption. The market was significantly higher than we calibrated to. So that resulted in a commissions delta. We had some one-off investments last year around commercial, that we don't expect to repeat in this year. And of course, all the productivity measures and our measures around cost discipline, we started last year, it's now matured a year forward. So all of those will start to flow through to what we expect to be a normalized year.

我們指出了一些特殊因素。去年，這很大程度上與我們支付的獎勵和佣金有關。其中一些，我們已經根據特定的市場假設調整了我們的配額。市場明顯高於我們校準的水平。這樣就產生了佣金增量。去年我們在商業方面進行了一些一次性投資，我們預計今年不會重複。當然，所有生產力指標和我們圍繞成本紀律的措施，我們從去年開始，現在已經成熟了一年。因此，所有這些都將開始進入我們預期的正常化年份。

The one thing around growth, the top line, you didn't -- you asked about margin phasing, Veronika, but the top line, so we expect the comps there are not easy, right? Particularly, on Recon, because we had a very strong market, as you know, particularly in Q1. So that will impact a little bit growth in Q1. And also for SANTYL, where as we transfer production over into Q4 -- into Fort Worth, there was an unusual ordering pattern in Q4 for SANTYL. And as a result of that stocking that happened in Q4, we'll expect, compared to Q4, Q1 will be softer. Those 2 effects to call out in Q1 relative to growth.

關於成長的一件事，即營收，你沒有問到利潤階段，維羅妮卡，但營收，所以我們預計那裡的比較並不容易，對吧？特別是在 Recon 上，因為如您所知，我們有一個非常強勁的市場，特別是在第一季。因此，這將影響第一季的一些成長。對於 SANTYL 也是如此，當我們將生產轉移到第四季度——沃斯堡時，SANTYL 在第四季度出現了不尋常的訂購模式。由於第四季發生的庫存，我們預計，與第四季相比，第一季將會更加疲軟。第一季相對於成長而言，這兩個影響值得關注。

Anything you want to add to that, Anne-Francoise?

安妮-弗朗索瓦絲，你還有什麼要補充的嗎？

Actually on margin, if I may come back to manufacturing, because you focus very much on the network optimization. So that's aligning capacity with volume. There are other elements and a significant amount of work around the cost base. So if you look at the 12-Point Plan, working with our suppliers to get better raw material cost, being smarter, more disciplined. So that's one. The other is around lean and looking at our overheads and how can we reduce.

實際上，如果我可以回到製造領域的話，實際上是在保證金上，因為你們非常關注網路優化。這就是使容量與數量保持一致。圍繞成本基礎還有其他因素和大量工作。因此，如果你看 12 點計劃，與我們的供應商合作，以獲得更好的原材料成本，變得更聰明，更自律。這就是其中之一。另一個是圍繞精益，專注於我們的管理費用以及如何減少。

So if you take -- you've aligned your volumes, you're reducing your cost base, that's what takes time, but delivers from '25 and '26 onwards.

因此，如果你調整了產量，就降低了成本基礎，這需要時間，但從 25 年和 26 年開始就能實現。

David Adlington, JPMorgan. Two questions, please. Just wondered if you could quantify your pricing expectations for '24, what you're sort of coming out with there. And it's taking slightly longer term, so I know you're not quite levied on '25 margins yet, but beyond '25, is a setup here for further annualization of the cost savings on the manufacturing side, but also ongoing operating leverage so we get some further margin expansion beyond '25?

大衛‧阿德靈頓，摩根大通。請教兩個問題。只是想知道您是否可以量化您對 24 年的定價預期，以及您會提出什麼。而且它需要稍微更長的時間，所以我知道你還沒有完全對“25”利潤率徵稅，但在“25”之後，這是一個設置，用於進一步年化製造方面的成本節省，而且還包括持續的營運槓桿，因此我們25 年後利潤率會進一步擴大嗎？

Sure. '24, there's 2 things. One is inflation-related pricing. So we expect that to start to come down, in terms of our ability to pass through. So it will be -- we expect a lower impact of that in '24 compared to '23. Layered on top is our efforts around strategic pricing, which is really the substance of the pricing component of the 12-Point Plan where we've not been, as an organization, as mature relative to best-in-class around our strategic pricing efforts.

當然。 '24，有兩件事。一是與通貨膨脹相關的定價。因此，我們預計，就我們的通過能力而言，這種情況會開始下降。所以，與 23 年相比，我們預期 24 年的影響會較小。最重要的是我們圍繞戰略定價所做的努力，這實際上是 12 點計劃定價部分的實質內容，作為一個組織，我們在戰略定價工作方面相對於一流組織來說還不夠成熟。

We've made tremendous progress over the last year. We just had a review of that not too long ago, very pleased with the capabilities we have built up as an organization to take ourselves to the next level. And the benefits of that will start to flow into our P&L starting in 2024. So you put those 2 effects, net a little bit less than in 2023, but we expect to see pricing benefit as we move forward.

去年我們取得了巨大進步。不久前我們剛剛對此進行了審查，對我們作為一個組織所建立的將自己提升到新水平的能力感到非常滿意。從 2024 年開始，這項好處將開始流入我們的損益表。因此，這兩項影響的淨值比 2023 年要少一些，但我們預計隨著我們的前進，定價將受益。

As to how we think about the world after '24, obviously, we're not giving specific guidance beyond 2025. We have reaffirmed 20-plus in 2025. The world doesn't end then. So we expect to continue to realize the benefits that we'll start to accrue in 2025 as we move forward beyond. So continued improvement from 2025 onwards. But we're not guiding specifically to those numbers.

至於我們如何看待 24 年後的世界，顯然，我們不會給出 2025 年後的具體指引。我們已經重申了 2025 年的 20 多個目標。那時世界還沒有結束。因此，隨著我們不斷向前邁進，我們預計將在 2025 年繼續實現我們將開始累積的優勢。因此從 2025 年開始持續改善。但我們並不是專門針對這些數字提供指導。

Sam England from Berenberg. Firstly, just a follow-up on pricing. Does the commentary around positive pricing across the portfolio, I mean that all 3 segments are positive or just positive in aggregate across the Group? And then can you dig into some of the drivers of the stronger growth in Wound Devices and negative pressure specifically? And on the 12-Point Plan initiatives, what's being sort of most impactful in driving the levels of growth that you're seeing there?

來自貝倫貝格的薩姆·英格蘭。首先，只是對定價進行跟進。關於整個投資組合的積極定價的評論是指所有 3 個細分市場都是正面的，還是整個集團總體而言都是正面的？然後能否深入探討捲繞設備強勁成長的一些驅動因素以及具體的負壓？在 12 點計畫舉措中，什麼對推動您所看到的成長水準最有影響力？

Yes. So pricing, as we indicated, it's not in the aggregate. In fact, each of our businesses contributed to the positive. And it's actually quite refreshing to see, it was not only was it across each of the businesses, but also across geographies. The levels vary, right? Depending on the geography, but it was quite broad-based. So that's the short answer to that question.

是的。因此，正如我們所指出的，定價並不是整體定價。事實上，我們的每一項業務都做出了積極的貢獻。事實上，這令人耳目一新，不僅是在每個企業，而且在各個地區。等級不一樣吧？取決於地理位置，但基礎相當廣泛。這就是這個問題的簡短答案。

Secondly, in terms of negative pressure and the 12-Point Plan, we are launching RENASYS, RENASYS EDGE, and it's new product driven growth. We're still in the very early stages of that. So we expect that to be a multiyear platform for growth. And so, expect to see continued traction. But it's new product launch -- launch driven.

其次，在負壓和12點計劃方面，我們正在推出RENASYS、RENASYS EDGE，它是新產品驅動的成長。我們仍處於早期階段。因此，我們預計這將成為一個多年的成長平台。因此，預計會繼續受到關注。但這是新產品的發布——由發布驅動。

Yes. Jack next. You waited for you to be called upon and now you've got 2 microphones.

是的。接下來是傑克。您正在等待被點名，現在您有 2 個麥克風。

I was too keen. Thanks for taking the questions, I had 3, please. First, on VBP. So you mentioned that, that 70 basis point headwind is without any kind of mitigations. Could you just remind us what mitigation you may be able to implement and kind of the magnitude of those?

我太熱心了。感謝您提出問題，我有 3 個問題。首先，關於VBP。所以你提到，70 個基點的逆風沒有任何緩解措施。您能否提醒我們您可以實施哪些緩解措施以及這些緩解措施的規模？

Second, on CORI. As you mentioned, the placements in the year was slightly below your target. I'm just wondering if you're expecting a rebound in 2024, if you had a rebound already, and whether you can kind of give us some color on your target for this year.

其次，關於 CORI。正如您所提到的，今年的展示位置略低於您的目標。我只是想知道您是否預計 2024 年會出現反彈，是否已經出現反彈，以及您是否可以給我們一些有關今年目標的資訊。

And then my third question is on demand. So there's been a bit of kind of debate around market level, whether we're still having some COVID rebound, whether it's kind of secular drivers there. I was wondering if you could give us your -- kind of how you see that progressing through 2024.

然後我的第三個問題是按需提出的。因此，圍繞市場水平存在一些爭論，例如新冠疫情是否仍在反彈，是否存在某種長期驅動因素。我想知道您是否可以告訴我們您對 2024 年進展的看法。

Yes. So regarding mitigating effects for VBP, it's restructuring around the organization, how we go to market in response to VBP, the types of actions that you expect us to take when you -- when you're faced with that kind of an impact. We've been through that in Orthopedics. We're able to offset some of the margin impact from price. Not all of it, of course. But there's things that you do commercially in terms of your channel and how you go to market, and those are the steps we expect to take.

是的。因此，關於減輕 VBP 的影響，它是圍繞組織進行重組、我們如何進入市場以應對 VBP、當您面臨這種影響時您期望我們採取的行動類型。我們在骨科領域就經歷過這種情況。我們能夠抵銷價格帶來的部分利潤影響。當然，不是全部。但就通路和進入市場的方式而言，您可以做一些商業化的事情，這些是我們期望採取的步驟。

I do want to remind the group that, in Sports, what's impacted is joint repair and certain components joint repair capital is not impacted. We're also launching REGENETEN in China. So there's a bunch of factors that are going into it. And so we will -- having experienced this with Orthopedics, we kind of have a way to adapt our commercial model in response to this, right? So that's the first question.

我確實想提醒大家，在運動中，受到影響的是關節修復，而某些組件的關節修復資本不受影響。我們也將在中國推出 REGENETEN。所以有很多因素在起作用。因此，在骨科領域經歷過這種情況後，我們有辦法調整我們的商業模式來應對這種情況，對嗎？這是第一個問題。

The second question is around CORI. I think that was the second one. So CORI, we fell short. I'd said, sitting here where I'm sitting, about 300, last year, we came in at 240. The primary delta there is China. We had expected a more robust market for CORI. And largely because of the anticorruption drive in China, there was a significant impact to the uptake of robotics. It's not us, it's just the market. That's the biggest source of the delta.

第二個問題是關於CORI的。我認為那是第二個。所以 CORI，我們沒有達到目標。我說過，我坐在這裡，大約有 300 名，去年我們排在 240 名。那裡的主要三角洲是中國。我們原本預期 CORI 的市場會更加強勁。很大程度上由於中國的反腐敗運動，對機器人技術的採用產生了重大影響。這不是我們的問題，而是市場的問題。這是三角洲的最大來源。

As Anne-Francoise called out, our CORI placements were above our relative share with it. So I'm actually genuinely pleased with the traction we've gotten. We saw a step-up actually in Q4, to your question about what -- what does the momentum look like? The momentum in Q4 was great, U.S., OUS.

正如 Anne-Francoise 所說，我們的 CORI 排名高於我們的相對份額。所以我真的對我們所獲得的關注感到非常滿意。我們在第四季看到了實際的進步，對於你的問題——勢頭是什麼樣的？美國、海外地區第四季的勢頭非常強勁。

What I'm particularly pleased about is it's not just placements, right? We're not running a strategy of place first. We're actually being much more thoughtful about placing it where there is actual demand. And one of the proxies that I look at or we look at is utilization. So we're at 25%, which is a build on when we last reported on that number. So even as our fleet is growing, our utilization is growing with it, right? And so that's what you want to see, the CORI that we're placing are, in fact, getting used.

我特別高興的是這不僅僅是展示位置，對嗎？我們沒有實行位置第一的策略。實際上，我們在將其放置在有實際需求的地方方面考慮得更加周到。我所關注或我們所關注的指標之一是利用率。所以我們的比例是 25%，這是我們上次報告該數字時的基礎。因此，即使我們的機隊不斷增長，我們的利用率也隨之增長，對吧？這就是您希望看到的，我們放置的 CORI 事實上正在被使用。

The other thing that I like is where we're seeing CORI is being placed, and Anne-Francoise has called that out too. This has got broad appeal across a range of settings. You've heard us talk about ASCs and the resonance that it has. But it's not just there, but it's also in other places like academic medical centers. We've said that historically have not necessarily had the strongest position in AMC. What I'm particularly pleased about is the kind of traction we're getting in the academic medical centers with CORI. So that's a good thing.

我喜歡的另一件事是我們看到 CORI 的放置位置，安妮-弗朗索瓦絲也指出了這一點。這在一系列環境中都受到了廣泛的關注。您已經聽過我們談論 ASC 及其引起的共鳴。但它不僅存在於此，而且存在於學術醫療中心等其他地方。我們說過，歷史上AMC不一定擁有最強的地位。我特別高興的是我們在學術醫療中心與 CORI 的合作。所以這是一件好事。

And then -- and we also called out multi-unit deals. So one of the value propositions of CORI is that, given its price point, you can put multiple of these things as you outfit an entire institution. And as Anne-Francoise said, 1/3 of our deals are multiunit deals. So very encouraged by the type of traction that we're getting. We're up to nearly 800 units, robotic placements, for us, which is pretty good. But we're still in the early stages of our commercialization there. So that's the story around CORI.

然後，我們也發起了多單位交易。因此，CORI 的價值主張之一是，考慮到其價格點，您可以在裝備整個機構時放置多種這些東西。正如 Anne-Francoise 所說，我們 1/3 的交易是多單元交易。我們所獲得的牽引力讓我們深受鼓舞。我們有近 800 個單位，機器人安置，對我們來說，這相當不錯。但我們仍處於商業化的早期階段。這就是關於 CORI 的故事。

And in terms of the market, obviously, last year was quite robust in recon. We fully participated in that and then some OUS markets. You see the gap narrowing relative to our competitors. In the U.S., it was more mixed in terms of our ability to participate in the market. I believe '24 will be continued strong market.

就市場而言，顯然去年的偵察相當強勁。我們全面參與了該市場以及一些 OUS 市場。您會看到相對於我們的競爭對手的差距正在縮小。在美國，就我們參與市場的能力而言，情況更加複雜。我相信'24市場將會持續強勁。

But for us, in terms of what's going to be driving growth, it's our own improvement in performance. That's far and away going to be the biggest driver of growth for us. So -- and our plans are based on normalized kind of market. So I think I answered your questions.

但對我們來說，就推動成長的因素而言，是我們自身績效的提升。這無疑將成為我們成長的最大動力。所以——我們的計劃是基於正常化的市場。所以我想我回答了你的問題。

It's Seb Jantet with Liberum. Two questions, if I could. One, just on the revenue guidance for the year. I'm just wondering what type of headwind from a revenue perspective you baked in for VBP in Sports Medicine.

我是 Liberum 的 Seb Jantet。如果可以的話，有兩個問題。第一，僅關於今年的收入指引。我只是想知道從收入角度來看，您在運動醫學領域的 VBP 遇到了什麼樣的阻力。

And the second one is just picking up on Advanced Wound Care. Quite a slow kind of quarter and certainly a slowdown if you look over long term in the growth rates in Advanced Wound Care. I wonder if you can comment a little bit on that and what you're doing to try and stimulate the growth there.

第二個是剛開始學習高階傷口護理。這是一個相當緩慢的季度，如果從長期來看高級傷口護理的成長率，肯定會放緩。我想知道您是否可以對此以及您正在採取哪些措施來刺激那裡的成長發表評論。

Yes, sure. So on the VBP, we had said about 2% impact on Group sales is how VBP -- is what translates. In terms of Wound Care, your question was overall wound or -- Wound Care -- yes.

是的，當然。因此，關於 VBP，我們說過對集團銷售額約 2% 的影響是 VBP 的翻譯。就傷口護理而言，您的問題是整體傷口或 - 傷口護理 - 是的。

What we've said in the presentation as well, that you should expect Joint Repair growth to be a -- impacted by about 5 percentage points. So for the full year.

我們在演示中也說過，您應該預期關節修復增長將受到約 5 個百分點的影響。所以對於全年來說。

2% Group, 5% Joint Repair. For AWC, there's 2 factors. One, we're impacted by supply historically. There were periods of time when we just didn't have regular supply. And we put -- our teams were commercially on the back foot relative to that. We've had now a couple of quarters of more steady supply in Wound Care. So we are in a more front-footed posture relative to that. It takes time for us to recover some of the share we've lost there, but that is one factor.

2% 團體，5% 關節修復。對於 AWC，有兩個因素。第一，我們歷來受到供應的影響。有一段時間我們沒有定期供應。相對而言，我們的團隊在商業上處於不利地位。現在，我們的傷口護理產品已經有幾季更穩定的供應。因此，相對於此，我們處於更前腳的姿勢。我們需要時間來恢復我們失去的一些份額，但這是一個因素。

The second is, from a product standpoint, we've made investments where there is a gap between us and competitive offerings. That will start to come through in about 18 months' time where there'll be new product offerings to make us even more competitive from a product lineup standpoint. That will continue to drive better performance.

第二個是，從產品的角度來看，我們在與競爭產品之間存在差距的地方進行了投資。這將在大約 18 個月的時間內開始實現，屆時將推出新產品，使我們從產品陣容的角度更具競爭力。這將繼續推動更好的業績。

Right now, the focus is on commercial. We're coming off of a period of interrupted supply. And so the way these things ladder up will be going forward, you should see improved AWC growth numbers.

目前，重點是商業化。我們即將擺脫供應中斷的期間。因此，隨著這些事情的發展，你應該會看到 AWC 成長數字的改善。

Richard Felton from Goldman Sachs. Two questions, please. The first one is on the medium-term margin targets and the implied step-up in '25. So thank you for the color you gave us in the presentation. One of the building blocks to better margin in 2025 was easing of inflationary pressures. So my question is, what level of visibility or confidence do you have either through hedges or your discussions with suppliers that inflationary pressures can actually ease in 2025?

高盛的理查費爾頓。請教兩個問題。第一個是關於中期利潤率目標和 25 年隱含的提升。感謝您在演示中為我們提供的色彩。 2025 年提高利潤率的基石之一是通膨壓力的緩解。所以我的問題是，透過對沖或與供應商的討論，您對 2025 年通膨壓力實際上可以緩解的了解或信心程度如何？

And then also point of clarification on your 2025 margin expectations. Is there any FX assumption embedded in that guidance?

然後也要澄清您 2025 年的利潤預期。該指南中是否包含任何外匯假設？

Then second question on free cash flow. It's obviously better performance this year. You both alluded to more to come, particularly on inventory. So as you benchmark your business either against peers, your own history, how big is that opportunity to drive better inventory performance from here?

然後是關於自由現金流的第二個問題。今年的表現顯然更好。你們都提到了未來的更多內容，特別是在庫存方面。因此，當您將您的業務與同行或您自己的歷史進行比較時，從這裡推動更好的庫存績效的機會有多大？

So the first one around inflation. Sorry, I need to reground myself. Around inflation. What I remind this group is there's about a year lag as inflation flows through our P&L -- flows through inventory and impacts our P&L. So we've got visibility now in terms of the type of contracts we're doing as part of the procurement efforts. It's one of the elements of the 12-Point Plan. We see the benefits that we're seeing through the negotiations that Anne-Francoise mentioned. So we've got some visibility to how that's coming down.

第一個是關於通貨膨脹的。抱歉，我需要重新調整自己。圍繞通貨膨脹。我提醒這個群體的是，通貨膨脹流經我們的損益表——流經庫存並影響我們的損益表，大約有一年的延遲。因此，作為採購工作的一部分，我們現在已經了解了我們正在執行的合約類型。這是十二點計畫的要素之一。我們看到了安妮-弗朗索瓦絲提到的透過談判所看到的好處。所以我們對事情的進展有了一定的了解。

Now we've called out the impact in '24 relative to '23, which is really at comparable levels. The double-click within that is, within Orthopedics, the particular raw materials that we see, there hasn't been a lot of change from '23 to '24, right? So that part of it is going to be slower to unwind. But when you look across the portfolio, we have a reasonable sense as to how this will start to flow into our P&L 2025. So in other words, a year removed, we've got some visibility.

現在我們已經列出了 24 年相對於 23 年的影響，這確實處於可比的水平。雙擊其中，在骨科中，我們看到的特定原材料，從 23 到 24 沒有太大變化，對吧？所以這部分的放鬆會比較慢。但當你縱觀整個投資組合時，我們對這將如何開始流入我們的 2025 年損益表有一個合理的認識。所以換句話說，一年過去了，我們有了一些可見性。

The second thing, around the working capital and inventory. As we've said, we have turned the corner in 2023. Our biggest challenge on inventory is in Orthopedics. So there's 2 pieces, right? There's Recon and there's Trauma. On the Recon side -- actually, this comment applies to both. Our ability to connect commercial and operations were historically not very good. We've made tremendous progress over the last 18 months in doing that. Our new S&OP process has led to a significantly better ways to connect supply and demand down at a SKU level, right? Not just in the product family or a category level. And that has been the key underpin for us to start to bring DSI down, right? And that's both Trauma and Recon.

第二件事，圍繞著營運資金和庫存。正如我們所說，我們已經在 2023 年渡過了難關。庫存方面我們面臨的最大挑戰來自骨科。所以有2塊，對嗎？有偵察，也有創傷。在偵察方面——實際上，這個評論對兩者都適用。我們連接商業和營運的能力歷來都不是很好。在過去 18 個月裡，我們在這方面取得了巨大進展。我們的新 S&OP 流程帶來了一種在 SKU 層級連接供應和需求的明顯更好的方法，對吧？不僅僅是在產品系列或類別層面。這是我們開始降低 DSI 的關鍵支撐，對嗎？這就是《創傷》和《偵察》。

Specifically in Trauma, a big chunk of the inventory buildup has been fueling our launch of EVOS, right? As you know, Trauma is a capital-intensive business, a particularly capital-intensive business within Orthopedics, and we're in a launch phase. Towards the latter part of the year or the second half of the year, there was AETOS as well that fueled that launch, but the bigger driver actually is in Trauma.

特別是在創傷領域，庫存累積的很大一部分一直在推動我們推出 EVOS，對吧？如您所知，創傷是一項資本密集型業務，尤其是骨科領域的資本密集型業務，我們正處於啟動階段。到了今年下半年，AETOS 艾拓思也推動了該產品的發布，但更大的推動力實際上來自 Trauma。

So we're in the big bolus of investment there, but it will continue into 2024. But our ability to kind of match demand and supply at a SKU level is a key unlock that leads to DSI. The second is our production planning itself. Where we had been previously running our factories for absorption, we're now running our factories for mixed attainment, right? And that's led us producing exactly what's needed rather than too much of the stuff we don't need and not enough of the stuff that we do need, right? So that's another key part of it. And that was great progress actually 2023 that we made.

因此，我們在這方面進行了大量投資，但這種投資將持續到 2024 年。但我們在 SKU 層級上滿足需求和供應的能力是實現 DSI 的關鍵。第二個是我們的生產計劃本身。以前我們經營工廠是為了吸收，現在經營工廠是為了混合成就，對嗎？這讓我們可以準確地生產出我們需要的東西，而不是生產太多我們不需要的東西，也沒有生產足夠我們需要的東西，對嗎？這是它的另一個關鍵部分。這實際上是我們在 2023 年取得的巨大進步。

So these factors will lead to this modest improvement, 5% improvement in DSI and Orthopedics start to gather steam and deliver as we go on, right? So we feel very good about how we're positioned in being able to drive that down as we go into '24 and '25.

因此，這些因素將導致這種適度的改善，DSI 和骨科方面 5% 的改善開始積聚動力並隨著我們的繼續而交付，對嗎？因此，我們對在進入 24 和 25 年時能夠降低這種情況的定位感到非常滿意。

And is there any embedded assumption for FX.

外匯是否有任何嵌入的假設？

For FX. I was hoping you don't go back there. I don't have a crystal ball, so certainly, as you know, we hedge some of our FX. So we're guiding to a lower transactional FX impact in '24 of 30 basis points versus the 120 we've seen in '23. In '25, we assume normalize on that. That's a variable. That's part of the pluses and minuses you face when you forecast. But if I get FX right, then I'll be rich next time I talk to you.

對於外匯。我希望你不要回到那裡。我沒有水晶球，所以如你所知，我們當然會對沖一些外匯。因此，我們預期 24 年交易性外匯影響將降低 30 個基點，而 23 年為 120 個基點。在 25 年，我們假設對此進行正常化。那是一個變數。這是您在預測時面臨的優點和缺點的一部分。但如果我的外匯交易正確，那麼下次我和你談話時我就會變得富有。

There's some questions on the phone.

電話裡有一些問題。

Our first question from the phone line is from Julien Dormois from Jefferies.

我們接到電話的第一個問題是來自 Jefferies 的 Julien Dormois。

Thanks for taking my questions, I have 3. But before, I would just like to say (foreign language) while wishing John a warm welcome.

感謝您提出我的問題，我有 3 個問題。但在此之前，我只想說（外語），同時祝約翰受到熱烈歡迎。

So my 3 questions related to products. The first one is on CartiHeal AGILI-C. I was just curious whether there is a timeline for the full product rollout? What is the total addressable market and whether we shall see an early contribution to Sports Medicine sales already in 2024?

我的三個問題與產品有關。第一個是在 CartiHeal AGILI-C 上。我只是好奇是否有完整產品推出的時間表？總的潛在市場是多少？我們是否會在 2024 年看到對運動醫學銷售的早期貢獻？

The second question is you guys are -- seem to place great emphasis on the AETOS shoulder system. Is there any plan on that side of making it available with CORI? Because I think one of your competitors has just received approval for the first time robotic application on that side. So wondering whether you have similar plans on the agenda.

第二個問題是你們──似乎非常重視 AETOS 艾拓思肩部系統。是否有計劃將其與 CORI 一起使用？因為我認為你們的一個競爭對手剛剛獲得了該方面首次機器人應用的批准。所以想知道您的議程上是否有類似的計劃。

And my last question coming back to the knee business. I'm just curious whether you have set some sort of internal KPI for 2024 of maybe growing the knee business at or above the market growth in the U.S. specifically.

我的最後一個問題回到膝蓋問題。我只是好奇你們是否為 2024 年設定了某種內部 KPI，特別是讓膝蓋業務的成長達到或超過美國市場的成長。

Sure. So I'll take those. So CartiHeal is more of a midterm driver for growth. It's not -- there'll be some impact in '24, but it won't be material to the Group. Where we are right now is we're in the process of training up our organization. So we featured it in our booth in AAOS. We're putting through our reps through CartiHeal through AGILI-C training. And as we roll through the year, we expect to see traction. But in terms of a material growth driver for the Group, it's more of a midterm thing, so it's not '24.

當然。所以我會接受這些。因此，CartiHeal 更像是中期成長的推動力。不會－24 年會有一些影響，但對集團來說不會產生重大影響。我們現在所處的位置是我們正在培訓我們的組織。所以我們在 AAOS 的展位上展示了它。我們正在透過 AGILI-C 培訓對我們的代表進行 CartiHeal 培訓。隨著這一年的到來，我們預計會看到牽引力。但就集團的實質成長動力而言，這更多的是中期的事情，所以不是「24」。

AETOS, we're scratched -- we've just now entered shoulder on the arthroplasty side, right? AETOS is our foray into it. As we announced in AAOS, we have plans to build out a full offering into shoulder.

AETOS 艾拓思，我們被刮傷了——我們剛剛進入關節成形術一側的肩部，對嗎？ AETOS 艾拓思是我們涉足的領域。正如我們在 AAOS 上宣布的那樣，我們計劃在肩膀中建立完整的產品。

You've heard me comment about my level of excitement for CORI in shoulder. Its form factor is ideally suited for shoulder given its anatomy. We have a program for shoulder -- on CORI. It's roughly 2 years out before we bring it to market. It will line up with our implant portfolio coming to line. So those things will come together. So it doesn't make sense to have CORI when we don't have an implant portfolio to go with it.

你已經聽過我評論過我對 CORI 肩膀的興奮程度。鑑於其解剖結構，其外形非常適合肩部。我們有一個關於肩膀的專案—CORI。我們大約需要兩年時間才能將其推向市場。它將與我們即將推出的植體產品組合保持一致。所以這些東西將會聚集在一起。因此，當我們沒有配對的植體組合時，使用 CORI 就沒有意義。

So we've got a holistic program that brings up the full shoulder portfolio and take advantage of the unique applicability of CORI to that anatomy. So we're really excited about it and look for more progress as we continue.

因此，我們有一個整體計劃，可以提供完整的肩部產品組合，並利用 CORI 對此解剖結構的獨特適用性。因此，我們對此感到非常興奮，並希望在繼續的過程中取得更多進展。

In terms of Knee, what am I looking for in terms of market performance? What I hope to see in Knee is a trajectory that we've seen in Trauma, where about this time last year, we would have lamented our limitations on supply. In fact, the main story about this time last year was how we're exiting certain markets. Fast-forward a year, we're talking about growth in the U.S. and a key unlock on the basis of availability.

就膝蓋而言，我在尋找什麼市場表現？我希望在《Knee》中看到的是我們在《Trauma》中看到的軌跡，大約去年這個時候，我們會哀嘆我們的供應限制。事實上，去年這個時候的主要故事是我們如何退出某些市場。快進一年，我們正在談論美國的成長和基於可用性的關鍵解鎖。

I'm expecting something like that in knee. It won't be quite as dramatic because the dynamic in knee is a bit different than trauma. But on the back of supply availability and all the other commercial things that we're doing, right? An incentive scheme aimed at growth, tighter performance management, very crystal clear set of plays that we're executing and holding our teams accountable to, and more disciplined around capital deployment, all of these things to come together to get better performance.

我期待膝蓋出現類似的狀況。情況不會那麼戲劇性，因為膝蓋的動態與創傷有點不同。但在供應可用性和我們正在做的所有其他商業活動的支持下，對吧？旨在成長的激勵計劃、更嚴格的績效管理、我們正在執行並讓我們的團隊負責的一系列非常清晰的策略、以及圍繞資本部署更加嚴格的紀律，所有這些因素結合在一起以獲得更好的績效。

As to whether that will be above market in the first half of the year or not, that's for us to work out. I don't want to get into that level of detail here. But what I'm trying to give you is a sense of the building blocks that I'm looking for.

至於上半年是否會高於市場水平，這需要我們去思考。我不想在這裡深入討論這一細節。但我試圖讓您了解我正在尋找的建置模組。

In terms of KPIs, yes, obviously, at the end of the day, we are looking for growth and growth compared to competitors as the ultimate KPI. But what I'm looking at is set turns, both for the sets that are out there, but also newly placed sets and how they're performing. I am looking at quota adherence in terms of how our reps are performing and the distribution around that. I am looking at CORI, where we're placing CORI, how CORI is being utilized, and kind of win rates and how we're doing in terms of competitive situations versus defensive or retention type of situations.

就 KPI 而言，是的，顯然，歸根結底，我們正在尋找與競爭對手相比的成長和成長作為最終的 KPI。但我關注的是局數輪換，既包括現有的局數，也包括新放置的局數以及它們的表現。我正在根據我們的代表的表現及其分配情況來考慮配額遵守情況。我正在研究 CORI，我們將 CORI 放在哪裡，如何利用 CORI，以及獲勝率以及我們在競爭情況與防守或保留類型情況方面的表現。

So these are some things, they're not the full set of KPIs, but gives you a feel for the types of things we're looking at for a turnaround in knee performance. I hope those answer your questions, Julien.

這些是一些事情，它們不是全套 KPI，但可以讓您了解我們正在尋找的改善膝蓋表現的類型。我希望這些能回答你的問題，朱利安。

Our next question is from Lisa Clive from Bernstein.

我們的下一個問題來自伯恩斯坦的麗莎·克萊夫。

Just 2 questions for me. First of all, given all the movements in VBP in China, can you just remind us of what your exposure is in Wound in case it goes in that direction? I know at least for 2022 China was 6% of your total sales. If you could just let us know for wound whether that's sort of a higher proportion or not. And also, if you could comment on what proportion of sales in China wound are into hospitals, or whether you have a sort of self-pay segment in the community as well.

只要問我 2 個問題。首先，考慮到 VBP 在中國的所有動向，您能否提醒我們您在 Wound 上的投資情況，以防萬一它朝這個方向發展？我知道至少到 2022 年，中國市場佔你們總銷售額的 6%。如果您能讓我們知道傷口的比例是否較高。另外，您能否評論一下中國傷口銷售中醫院的比例是多少，或者您在社區中是否也有某種自付費用部分。

And then next question is, given all the changes in your sales force in the U.S., can you just give us an overarching view of how it is set up today? Is sports medicine totally separate from Ortho? Within Ortho, is Recon separate from Trauma? How do Extremities fit in? And then also, I guess, in terms of the structure of those reps, are they direct employees? I know some companies do it differently. I'm just trying to understand sort of what it looks like. I know Smith & Nephew has tried a bunch of different structures in the past. So just trying to figure out why the new setup should be the sort of winning formula.

下一個問題是，鑑於您在美國的銷售隊伍發生了所有變化，您能否向我們介紹一下今天的銷售隊伍是如何建立的？運動醫學與 Ortho 完全分開嗎？在 Ortho 中，Recon 與 Trauma 是分開的嗎？四肢如何適應？然後，我想，就這些代表的結構而言，他們是直接員工嗎？我知道有些公司的做法有所不同。我只是想了解它的樣子。我知道 Smith & Nephew 過去嘗試過許多不同的結構。所以只是想弄清楚為什麼新的設定應該是一種獲勝的公式。

Sure. Lisa, so VBP and Wound, our position in Wound is relatively small in China. Certainly, from a Group standpoint, it would not be hugely material. In contrast to Sports, where we were the market leader, in Ortho, we were the market leader, so VBP implementation had significant impact not only to their businesses, but also to a Group level. In Wound, we're not positioned in that way. Good news, bad news story.

當然。 Lisa，那麼VBP和Wound，我們在Wound的地位在中國是比較小的。當然，從集團的角度來看，這不會有太大影響。與體育運動相反，我們是市場領導者，而在 Ortho，我們是市場領導者，因此 VBP 的實施不僅對他們的業務產生了重大影響，而且對集團層面也產生了重大影響。在《Wound》中，我們的定位並非如此。好消息，壞消息的故事。

In terms of our sales, I'll need to get back to you in detail, we'll do that. But I believe the majority of our sales are to hospitals versus self-pay. But let me confirm that with you, Lisa, post...

就我們的銷售而言，我需要詳細回覆您，我們會這樣做。但我相信我們的大部分銷售都是針對醫院而不是自費。但讓我向你確認一下，麗莎，貼文…

We have a smaller portion of retail.

我們的零售業務佔比較小。

Right. In terms of sales force, we do have distinct sales forces for Trauma and Recon. And we have distinct sales forces for Sports and Recon. Now there's, of course, some geographies somewhere where there is some overlap. So there are certain parts, if you will, in the U.S., where there's Trauma and Recon go together. There are certain distributors that we have that carry both Trauma and Recon. So there are those exceptions. By and large, they are distinct sales forces, both -- I think you asked -- the question was around the U.S. It's certainly true in the U.S.

正確的。在銷售隊伍方面，我們確實為《Trauma》和《Recon》擁有不同的銷售團隊。我們在運動和偵察領域擁有獨特的銷售團隊。當然，現在有些地區存在一些重疊。所以，如果你願意的話，在美國的某些部分，《創傷》和《偵察》是同時出現的。我們有一些經銷商同時銷售《Trauma》和《Recon》。所以存在這些例外。總的來說，他們是不同的銷售隊伍，我想你問過，問題是在美國。這在美國確實如此。

In terms of direct versus 1099s or agents, our Sports is primarily direct. Our Orthopedics is a mix. I don't know that I certainly want to give you that mix, but it's a mix between direct and distributors. Obviously, as you know, you can make any model work, but that is a difference between our Sports versus our Ortho.

就直接與 1099 或代理而言，我們的體育主要是直接的。我們的骨科是一個混合科。我不知道我是否想為您提供這種組合，但這是直接和分銷商之間的組合。顯然，如您所知，您可以使任何模型發揮作用，但這就是我們的 Sports 與 Ortho 之間的區別。

And then in terms of Extremities, that is combined with our Trauma sales force. In other words, we don't have a shoulder specific sales force, at least not at the moment. So that's, I think, the rough answer to your question. If I missed anything, let me know, Lisa.

然後就四肢而言，這與我們的創傷銷售團隊結合。換句話說，我們沒有一支專門的銷售隊伍，至少目前還沒有。我認為這就是你問題的粗略答案。如果我錯過了什麼，請告訴我，麗莎。

No, that's super helpful. And leading from that, given this gradual shift for recon procedures in ASCs, could you talk about what that looks like? Are these surgeons who may be doing 70% of their procedures in a hospital, but then may do 30% in an outpatient setting? Is it -- how -- I'm just trying to understand sort of which reps are servicing that growing area. And also given your comments around potential sort of cross-selling opportunities, Sports Medicine and Recon are distinct. I know some surgeons will do sort of a little bit of each. But just trying to understand sort of how you're capitalizing on that potential new opportunities.

不，這非常有幫助。由此出發，考慮到 ASC 偵察程序的逐漸轉變，您能談談這是什麼樣的嗎？這些外科醫生是否可能在醫院完成 70% 的手術，但可能在門診完成 30% 的手術？是嗎——如何——我只是想了解哪些代表正在為該增長區域提供服務。而且考慮到您對潛在交叉銷售機會的評論，運動醫學和偵察是截然不同的。我知道有些外科醫生會每種都做一點。但只是想了解您如何利用潛在的新機會。

So we've got a ton of experience in ASCs. About 40% of our sports business flows through the ASCs already. So we've got quite a bit of experience in that channel. And as you note, there's more and more joint replacements that are moving into that channel. And recognizing that, we've called that out as one of the elements of the 12-Point Plan.

所以我們在 ASC 方面擁有豐富的經驗。我們大約 40% 的體育業務已經透過 ASC 流通。因此，我們在該管道方面擁有相當多的經驗。正如您所注意到的，越來越多的關節置換術正在進入該管道。認識到這一點，我們已將其列為 12 點計劃的要素之一。

We noted the progress -- we start off at a good place in '22. We've built upon that in '23 where we -- I think we tripled the number of deals that we did. Now it sounds great, but it's still a fairly modest thing in the universe of all deals that could be done. But we're pleased with the progress and the traction we're getting.

我們注意到了進展——我們在 22 年的起點很好。 23 年，我們在此基礎上——我認為我們的交易數量增加了兩倍。現在聽起來不錯，但在所有可以完成的交易中，這仍然是一件相當不起眼的事情。但我們對所取得的進展和所獲得的關注感到滿意。

We're also the only ortho company to have a significant sports business that's well represented in the ASC. So we know the channel well and there are cross-selling opportunities. But having said that, there are distinct surgeon groups that do them. There's, of course, there's always surgeons that do both procedures, but by and large, the distinct surgeons that do replacements versus Sports cases.

我們也是唯一一家在 ASC 中擁有重要運動業務的骨科公司。所以我們很了解管道並且有交叉銷售的機會。但話雖如此，有不同的外科醫生團體在做這些手術。當然，總是有外科醫生做這兩種手術，但總的來說，做置換手術的外科醫生與做體育手術的外科醫生不同。

So we're particularly excited about the prospects there. CORI, as we've called out in previous forums like this, has resonance across the board, but in particular, in ASCs given its price point, given its form factor, it -- there's a very compelling value proposition for CORI. So as we start to capitalize on the trend of procedures moving into the ASC, we've got in CORI great vehicle or catalyst to start to be competitive in that segment.

因此，我們對那裡的前景感到特別興奮。正如我們在先前的此類論壇中所呼籲的那樣，CORI 引起了廣泛的共鳴，但特別是在 ASC 中，鑑於其價格點和外形尺寸，CORI 具有非常引人注目的價值主張。因此，當我們開始利用程式進入 ASC 的趨勢時，我們已經有了 CORI 的強大工具或催化劑，可以開始在該領域具有競爭力。

What we're seeing as we look at our business in the ASC channel versus our hospital channel, we're seeing a relatively higher performance in ASC relative to our overall average share position. So it's early days yet, but I'm kind of pleased with the traction that we're getting there.

當我們比較 ASC 通路與醫院通路的業務時，我們發現，相對於我們的整體平均份額地位，ASC 的表現相對較高。所以現在還為時過早，但我對我們所取得的進展感到滿意。

But we do need to keep a focus. There's a lot going on. It's a highly dynamic market. I like the way we're positioned. But we, of course, have to execute commercially to take advantage of the opportunity. But the building blocks for us to do that are there. CORI and Recon, a strong presence already in that channel through our Sports position and a fundamental value proposition that seeks to tie those things together where it makes sense.

但我們確實需要保持專注。有很多事情發生。這是一個高度活躍的市場。我喜歡我們的定位方式。但當然，我們必須進行商業化才能利用這個機會。但我們做到這一點的基石已經存在。 CORI 和 Recon，透過我們的體育立場和基本價值主張，已經在該管道中佔據了強大的地位，力求將這些事物在有意義的地方結合在一起。

Our last question we have time for today is from Sezgi Ozener from HSBC.

今天的最後一個問題來自匯豐銀行的 Sezgi Ozener。

Just 2, please. First of all, on China in CORI. You said there is, of course, an impact from the Integra. How is it -- have the sales completely come to in halt? Or are you selling at a much slower pace? And also going forward, what's your target in terms of out of U.S. CORI placements? That was my first question.

就2個，拜託。首先，關於CORI的中國。你說當然有 Integra 的影響。怎麼樣－銷售完全停止了嗎？還是你的銷售速度慢很多？展望未來，您在美國 CORI 安置方面的目標是什麼？這是我的第一個問題。

And the second one, on sales incentives, you said that had an impact on the churn, and you're trying to replace that through equipment. Have you more observed the sales force going to competition? And would you be reacting in terms of changing the incentive structure to that? Or would you be reacting by completely hiring new force that adjusts to the current systems -- incentive systems?

第二個是關於銷售激勵，你說這對客戶流失產生了影響，你正試圖透過設備來取代它。您是否更多地觀察到銷售人員去參加競爭？您會對此做出改變激勵結構的反應嗎？或者你會透過完全僱用適應當前系統（激勵系統）的新力量來做出反應嗎？

Yes. So China, CORI, it's primarily a market effect. So when we look at how many quarries we did place relative to the number of robotic placements that happened in China, we were doing very, very well relative to our share. These are small numbers. So it isn't necessarily a value proposition question for CORI in China, but rather an overall adoption of robotics in the orthopedic space. So that's by far and away the effect in China.

是的。所以中國，CORI，這主要是市場效應。因此，當我們看看我們放置的採石場數量與中國機器人放置數量的關係時，我們的表現相對於我們的份額來說非常非常好。這些都是小數字。因此，這不一定是 CORI 在中國的價值主張問題，而是機器人技術在骨科領域的整體採用問題。到目前為止，這就是對中國的影響。

OUS versus U.S., we're already the #1 robotic -- CORI is the #1 robotic system in EMEA already. That was the case in '23, we built upon that -- in '22 that was -- we built upon that position in '23. So we're looking to capitalize on the opportunities there.

與美國相比，我們已經是排名第一的機器人——CORI 已經是歐洲、中東和非洲地區排名第一的機器人系統。 23 年的情況就是如此，我們在此基礎上——在 22 年——我們在 23 年的立場基礎上建立了。因此，我們希望利用那裡的機會。

We have targets internally, of course, but not something that I'd want to kind of put out there in a public sphere. But suffice it to say that the value proposition of CORI is quite strong in a range of settings within the U.S., but also in a range of health care systems.

當然，我們有內部目標，但我不想在公共領域公佈這些目標。但只要說 CORI 的價值主張在美國的一系列環境中以及在一系列醫療保健系統中都相當強大就足夠了。

In terms of incentives, it's incentives and also tighter performance management that led to the churn. We expected that. It just came kind of later in the year than we thought would happen.

在激勵方面，激勵措施和更嚴格的績效管理導致了員工流失。我們預料到了。只是這一年發生的時間比我們想像的晚一些。

In terms of how we respond to it, the solution is not a structural change. We went through a structure change in terms of going to a more business unit first model compared to a matrix model that we had run, primarily impacted the OUS geographies. We're not looking to make further changes from a structure standpoint. We've got a structure that, at least, that I'm happy with. And it's more about trying to have the best organization that we possibly can.

就我們如何應對而言，解決方案不是結構性變革。與我們運行的矩陣模型相比，我們經歷了結構變化，轉向了業務部門優先的模型，這主要影響了 OUS 地區。從結構的角度來看，我們不打算再做出進一步的改變。我們有一個至少令我滿意的結構。更重要的是盡力建立最好的組織。

In terms of where our reps are going, there's a range of things. Some going to competitors, some going into other fields. And in terms of our response to that, I don't know that I want to necessarily spell that out other than we've got a great recruitment pipeline, and I expect that we'll have a great -- we have a great team already we're looking to add to that team as we move forward.

就我們代表的去向而言，有很多事情。有些進入競爭對手，有些進入其他領域。就我們對此的回應而言，我不知道我是否想把這一點說清楚，除了我們有一個很棒的招募管道，我希望我們會有一個很棒的——我們有一個很棒的團隊隨著我們的前進，我們已經在尋求加入團隊。

That's very helpful. Thank you.

這非常有幫助。謝謝。

You're welcome. Okay. That's a wrap. Thank you very much. Appreciate the attention and engagement.

不客氣。好的。這是一個包裝。非常感謝。感謝大家的關注與參與。