Smith & Nephew PLC (SNN) 2024 Q2 法說會逐字稿

Good morning, and welcome to the Smith & Nephew second-quarter and half-year results presentation. I'm Deepak Nath, I'm the Chief Executive Officer; and joining me is Chief Financial Officer, John Rogers. I'm pleased to report a solid set of numbers that represents a good step towards our full-year guidance and further progress on our strategy to transform Smith & Nephew.

早安，歡迎來到施樂輝第二季和半年業績發表會。我是 Deepak Nath，我是執行長；與我一起的還有財務長約翰‧羅傑斯 (John Rogers)。我很高興地報告一組可靠的數字，這些數字代表我們向全年指導邁出的良好一步，以及我們施樂輝轉型策略的進一步進展。

On revenue, we delivered the acceleration that we expected with 5.6% growth in the quarter. The Sports Medicine business continued its good momentum across categories and regions. Advanced Wound Management will return to growth with a better quarter in both bioactives and in AWC.

在營收方面，本季我們實現了 5.6% 的成長，符合我們的預期。運動醫學業務在各品類、各地區持續保持良好動能。先進傷口管理將恢復成長，生物活性劑和 AWC 的季度表現都會更好。

In Orthopedics, all of Trauma & Extremities, Robotics and ex-US Recon have kept performing well. And we've made good progress with addressing our performance in US Recon.

在骨科領域，所有創傷和四肢、機器人和前美國偵察部門都保持著良好的表現。我們在解決美國偵察中的表現方面取得了良好進展。

On profitability, 140 basis points of expansion is around the upper end of the guidance range we gave back in May. Operating leverage and our productivity measures in the 12-Point Plan more than offset external pressures and have positioned us well to deliver a full-year target. It's very encouraging to see double-digit profit growth, and also importantly, translating into cash with 60% trading cash conversion, which is well ahead of where we were last year.

在獲利能力方面，140 個基點的擴張約為我們 5 月給出的指導範圍的上限。營運槓桿和十二點計畫中的生產力指標不僅抵消了外部壓力，而且使我們能夠很好地實現全年目標。看到兩位數的利潤成長非常令人鼓舞，而且重要的是，以 60% 的交易現金轉換率轉化為現金，這遠遠領先於我們去年的水平。

My assessment when we began this turnaround was that Smith & Nephew was a portfolio of fundamentally good businesses with excellent technology and the right to win in every part of the company. The diagnosis of why we want that full potential was that we had challenges around execution and culture, and we developed the 12-Point Plan to address those remaining issues. The progress we've made since 2022 is evidence that we had the right diagnosis, and we are now firmly on the path to the better financial outcomes that we've been aiming for.

當我們開始扭轉局面時，我的評估是，Smith & Nephew 是一個由基本良好的企業組成的投資組合，擁有卓越的技術和在公司各個部門獲勝的權利。我們想要充分發揮潛力的原因是，我們在執行和文化方面遇到了挑戰，因此我們制定了 12 點計劃來解決這些剩餘問題。自 2022 年以來我們取得的進展證明我們的診斷是正確的，我們現在正堅定地走在實現我們一直目標的更好財務成果的道路上。

The first half of '24 shows that we're delivering good results from the large majority of the portfolio, making up about 85% of sales. That is a transformation from where we were at the outset. And particularly in Orthopedics, where we've turned around the majority of the business.

24 年上半年顯示，我們大部分的產品組合都取得了良好的業績，約佔銷售額的 85%。這是我們從一開始的轉變。尤其是在骨科領域，我們扭轉了大部分業務。

Trauma and OUS Recon are now consistently delivering growth well above our history. And CORI successfully developed from being a new challenger in the market to being recognized as a leading system, with strong adoption across a range of settings from ambulatory surgical care centers to academic medical centers. And it's how we've done all of this that makes me convinced that US Recon is poised to do the same. Firstly, the specific ways we've driven the rest of orthopedics are exactly what we're doing in the US, but driving product availability, capital efficiency and innovation delivery through the various initiatives of the 12-Point Plan.

Trauma 和 OUS Recon 現在持續實現遠高於歷史水準的成長。CORI 成功從市場上的新挑戰者發展成為公認的領先系統，在從門診手術護理中心到學術醫療中心的一系列環境中得到廣泛採用。正是我們所做的這一切讓我確信美國偵察部隊也準備好做同樣的事情。首先，我們推動其餘骨科領域的具體方式與我們在美國所做的完全一樣，但透過 12 點計劃的各種舉措來推動產品可用性、資本效率和創新交付。

Secondly, we've confirmed the strength of our technology by delivering outperformance with the same products in other markets. And thirdly, I can see the discipline and focus that has come from the 12-Point Plan and our shift to a verticalized more accountable set of business units. And those benefits apply equally to every part of our portfolio. I'll return to some of these themes later and John will talk more about cash returns and accountability in his presentation. For now, I'll take you through the detail of the quarter.

其次，我們透過在其他市場上提供優於相同產品的性能來證實我們的技術實力。第三，我可以看到 12 點計畫所帶來的紀律和重點，以及我們向垂直化、更負責任的業務部門的轉變。這些好處同樣適用於我們投資組合的每個部分。稍後我將回到其中一些主題，約翰將在他的演講中更多地談論現金回報和責任。現在，我將帶您了解本季的詳細資訊。

Revenue in the quarter was $1.4 billion with 5.6% underlying growth and 4.6% reported with 100 basis points headwind from foreign exchange. Growth also included a tailwind from one more trading day than in the prior year. All three business units accelerated sequentially, and I'll come to the detail in a moment. Geographically, the US grew at 3.6% and other established markets grew 6.9%. Emerging markets grew at 9.5%, with strong double-digit growth across the Middle East, India and Latin America.

該季度營收為 14 億美元，基本成長率為 5.6%，報告成長率為 4.6%，但受到外匯匯率影響 100 個基點。成長也包括比前一年多一個交易日的推動力。三個業務部門都相繼加速，我稍後會詳細介紹。從地理上看，美國成長了 3.6%，其他成熟市場成長了 6.9%。新興市場成長 9.5%，其中中東、印度和拉丁美洲實現強勁兩位數成長。

For the business unit performance, I'll start with Orthopedics, which grew at 5.8% underlying. Global Knees and Hips grew by 2.1% and 4%, respectively. The geographic trends of recent quarters continued with higher growth in the OUS segment, particularly in Europe. Almost half of our Recon business is in those international markets, where we're demonstrating what our portfolio can deliver with good execution and even as we, of course, lap stronger comps.

對於業務部門的業績，我將從骨科業務開始，該業務的基本成長率為 5.8%。全球膝蓋和臀部分別增加 2.1% 和 4%。最近幾季的地理趨勢持續保持，OUS 領域（尤其是歐洲）成長更快。我們近一半的偵察業務都在這些國際市場，在那裡我們展示了我們的產品組合可以透過良好的執行力提供什麼，當然，我們也擁有更強大的競爭優勢。

US Recon was still behind for the quarter as a whole, but there were encouraging signs of progress. Our operational improvements under the 12-Point Plan are now at go with both implant supply and now set availability at target levels, and that's for both Hips and Knees as well. We're also seeing indicators of commercial effectiveness moving favorably, particularly around staff retention.

美國偵察隊整個季度仍然落後，但出現了令人鼓舞的進展跡象。我們根據 12 點計劃進行的營運改善現在正在與植入物供應一起進行，現在將可用性設定在目標水平，這也適用於臀部和膝蓋。我們也看到商業效益指標朝著有利的方向發展，特別是在員工留任方面。

Other Recon grew 17.8% and reflects another good quarter of robotics placements, particularly in the US. We've also continued to develop our offering with the launch in June of the CORIOGRAPH pre-operative planning and modeling. The launch makes CORI the only robotic system to offer a choice of image-free and image-based planning, and is another element in our approach of supporting a range of surgeon preferences on a single platform.

其他 Recon 成長了 17.8%，反映出機器人技術安置的另一個好季度，尤其是在美國。我們也繼續開發我們的產品，並於 6 月推出了 CORIOGRAPH 術前規劃和建模。此次推出使 CORI 成為唯一提供無影像和基於影像規劃選擇的機器人系統，也是我們在單一平台上支援一系列外科醫生偏好的方法的另一個要素。

Trauma & Extremities grew 11.8%, providing half of the overall Orthopedics growth. The EVOS Plating System continues to be a key driver within core trauma and the growth contribution of AETOS Shoulder is steadily increasing as we deploy more capital and convert new surgeons.

創傷和四肢增長 11.8%，佔骨科整體成長的一半。EVOS 電鍍系統仍然是核心創傷的關鍵驅動力，隨著我們部署更多資金並改造新的外科醫生，AETOS Shoulder 的成長貢獻正在穩步增加。

Sports Medicine and ENT grew 7.6% in the quarter. Within that, Joint Repair growth was 6%, including the expected headwind from volume-based procurement in China. While the implementation began only in May, we saw ordering patterns affected for the whole of the second quarter. Excluding China, Joint Repair growth would have been 11.8% with a very strong quarter across our other major markets or other markets.

運動醫學和耳鼻喉科本季成長 7.6%。其中，關節修復業務成長了 6%，其中包括來自中國批量採購的預期阻力。雖然實施僅在 5 月開始，但我們看到整個第二季的訂購模式都受到了影響。如果不包括中國，關節修復的成長率將為 11.8%，我們的其他主要市場或其他市場的季度表現非常強勁。

By product, the Knee Repair portfolio and REGENETEN were, again, key contributors. And we're well advanced with the post-acquisition integration of CARTIHEAL AGILI-C. That's one of our next-generation growth drivers. Early cohorts of sales reps have completed the training and we're starting to build outpatient and surgeon access.

從產品來看，Knee Repair 產品組合和 REGENETEN 再次成為關鍵貢獻者。我們在收購後整合 CARTIHEAL AGILI-C 方面取得了巨大進展。這是我們下一代成長動力之一。早期的銷售代表群體已經完成了培訓，我們開始建立門診和外科醫生的通道。

Arthroscopic Enabling Technologies grew by 8.7%. Higher growth in the quarter came from the expected recovery in video capital sales and continued good performance from our radiofrequency platform, both from COBLATION and from WEREWOLF FASTSEAL. E&T revenue growth of 11.6% was driven by our core tonsil and adenoid business. While underlying demand continues to grow well, I'd remind you that the next quarter will have a very strong prior year comparator within the -- with the effect that the ENT growth in Q3 is likely to be around flat.

關節鏡支援技術成長 8.7%。本季的較高成長來自視訊資本銷售的預期復甦以及我們的射頻平台（COBLATION 和 WEREWOLF FASTSEAL）的持續良好表現。E&T 營收成長 11.6% 是由我們的核心扁桃體和腺樣體業務推動的。雖然潛在需求持續良好成長，但我想提醒您，下個季度將有一個非常強勁的去年同期比較，結果是第三季耳鼻喉科的成長可能會持平。

Looking now at Advanced Wound Management, we returned to growth at plus 3.3%, with recovery, as I said earlier, with both AWC and in bioactives. In AWC, 3% growth reflected continued strong performance in foams and anti-infectives and improvement in films. In bioactives, growth came from a strong sequential recovery in SANTYL along with a more normalized prior year comparator.

現在看看先進傷口管理，我們恢復了 3.3% 的成長，正如我之前所說，AWC 和生物活性劑都在復甦。在 AWC 領域，3% 的成長反映了泡沫和抗感染藥物的持續強勁表現以及薄膜的改進。在生物活性物質方面，成長來自 SANTYL 的強勁連續復甦以及更正常化的上一年比較。

As we've previously indicated, the recent quarter-to-quarter growth volatility or variability is quite normal for SANTYL, and we expect further improvement from the rest of the year. Offsetting SANTYL was a slower second quarter for our lead skin substitute product GRAFIX, ahead of the launch of a new version called GRAFIX PLUS.

正如我們之前指出的，最近季度與季度之間的成長波動或變化對於 SANTYL 來說是很正常的，我們預計今年剩餘時間將進一步改善。在推出名為 GRAFIX PLUS 的新版本之前，我們的主要皮膚替代產品 GRAFIX 第二季度的銷售放緩抵消了 SANTYL 的影響。

Finally, Advanced Wound Devices revenue grew by 8%, led by our single-use negative pressure platform, PICO. RENASYS EDGE is also an important part of our growth plans and received CE Mark in the quarter. We plan to launch in Europe in the second half of the year, adding to the US rollout that's currently underway.

最後，在我們的一次性負壓平台 PICO 的帶動下，高階傷口設備收入成長了 8%。RENASYS EDGE 也是我們成長計畫的重要組成部分，並在本季度獲得了 CE 標誌。我們計劃於今年下半年在歐洲推出，並補充目前正在進行的美國推出。

And with that, I'll hand it over to John.

這樣，我就把它交給約翰了。

Thank you, Deepak. It's a pleasure to be presenting to you all in person this morning. Today's announcement actually marks four months into my time as CFO. And as you'd expect, I spent a lot of my time digging into the detail of the company, the 12-Point Plan and the financials. That's very much an ongoing exercise, but it has already identified opportunities to go further with some of the initiatives.

謝謝你，迪帕克。很高興今天早上親自向大家介紹。今天的公告實際上標誌著我擔任財務長已有四個月了。正如你所料，我花了很多時間深入研究公司的細節、12 點計畫和財務狀況。這在很大程度上是一項持續的工作，但它已經確定了進一步實施某些措施的機會。

So as I take you through the first-half financials, I'd like to share some of my thinking on our opportunities and financial priorities in the coming years. I'll start with the P&L. Revenue for the half was $2.8 billion, up 4.3% on an underlying basis compared to half-one 2023. Reported revenue was up 3.4%, including a foreign exchange headwind of 90 basis points. As you can see, growth was higher in our Surgical businesses, with AWM growth reflecting the slow first quarter.

因此，當我向您介紹上半年的財務狀況時，我想分享我對未來幾年的機會和財務優先事項的一些想法。我將從損益表開始。上半年營收為 28 億美元，與 2023 年上半年相比基本成長 4.3%。報告營收成長 3.4%，其中包括 90 個基點的外匯逆風。正如您所看到的，我們的外科業務成長較高，AWM 成長反映了第一季的緩慢成長。

Looking at the trading P&L. Gross profit was $1.98 billion with a gross margin of 70.1%, which is 30 basis points of expansion over prior year. We also delivered positive leverage across our operating expenses with good control of our cost base. That resulted in 140 basis points of trading margin expansion to 16.7%, around the upper end of our guidance range and trading profit growth of 12.8% to $471 million.

查看交易損益表。毛利為19.8億美元，毛利率為70.1%，較前一年成長30個基點。我們也透過良好控製成本基礎，在營運支出中發揮了積極的槓桿作用。這導致交易利潤率擴大 140 個基點，達到 16.7%，接近我們指導範圍的上限，交易利潤成長 12.8%，達到 4.71 億美元。

Slide 12 shows a more detailed trading margin bridge. Going through the moving parts, we absorbed headwinds of 120 basis points from input cost inflation and merit increases and 50 basis points from transactional FX, but more than offset them with 120 basis points of revenue leverage from price and volume, and 190 basis points from productivity improvements, mainly for manufacturing but also across all other areas of operating expenses.

投影片 12 顯示了更詳細的交易保證金橋樑。透過移動部分，我們吸收了來自投入成本通膨和績效成長的120 個基點的逆風，以及來自交易性外匯的50 個基點的逆風，但透過價格和數量的120 個基點的收入槓桿以及來自交易量的190 個基點的收入槓桿抵消了這些逆風。

If I look back at the same bridge from last year, the overall profile of puts and takes is much more favorable today. Inflation pressure was less than half of what it was in 2023, and we were able to fully offset with revenue leverage. That means that much of what we gained through efficiency savings is now dropping straight through to trading profit. I'll talk later about where there are further savings opportunities beyond what we initially planned for.

如果我回顧去年的同一座橋，今天看跌期權和看跌期權的整體情況要有利得多。通膨壓力不到2023年的一半，我們能夠用收入槓桿完全抵銷。這意味著我們透過效率節約所獲得的大部分收益現在直接轉化為交易利潤。稍後我將討論哪些地方還有超出我們最初計劃的進一步節省的機會。

Looking further down the P&L, adjusted earnings per share grew by 8% to $0.376. That's slightly less than trading profit due to the higher tax and interest expense that we pointed to in our technical guidance at the start of the year. The interim dividend of $0.144 per share is unchanged.

進一步查看損益表，調整後每股盈餘成長 8%，達到 0.376 美元。由於我們在年初的技術指南中指出的稅收和利息費用較高，這略低於交易利潤。中期股息每股 0.144 美元不變。

Trading cash flow in the period was $284 million, with trading cash conversion of 60%, well ahead of the 26% in 2023. The improvement came from lower working capital outflows, particularly from inventory and payables. And as you know, inventory has been a focus of the 12-Point Plan. So it's an encouraging step for inventory days have broadly leveled off after many years of increases.

期內交易現金流量為 2.84 億美元，交易現金轉換率為 60%，遠高於 2023 年的 26%。這項改善來自於營運資金流出減少，特別是來自庫存和應付帳款的流出。如您所知，庫存一直是十二點計劃的重點。因此，這是令人鼓舞的一步，因為庫存天數在經歷多年的增長後已基本趨於平穩。

For the full year, we're targeting trading cash conversion around 85%, which is a return to our historical levels and includes the usually higher conversion in the second half of the year. Free cash flow was positive at $39 million, with improved trading cash conversion, partially offset by restructuring costs related to the 12-Point Plan. We should see our free cash flow improve, as profit steps up and planned restructuring charges are lower in the second half of the year. More broadly, we are past the peak of restructuring, and we expect it to improve further in 2025.

對於全年，我們的目標是交易現金轉換率達到 85% 左右，這是回到我們的歷史水平，其中包括下半年通常較高的轉換率。自由現金流為正，達 3,900 萬美元，交易現金轉換有所改善，但部分被與 12 點計畫相關的重組成本所抵銷。隨著下半年利潤的增加和計劃重組費用的降低，我們的自由現金流應該會有所改善。更廣泛地說，我們已經過了重組的高峰期，我們預計 2025 年會進一步改善。

I'd like to go into a little bit more detail on inventory. Slide 15 shows the trajectory of DSI, both for the group and the business units, with 553 overall days broadly flat compared to the end of half-one 2023 that we had some initial buildup of inventory early in the year to support product launches, including AETOS and RENASYS EDGE, and then started to see days reduce again as we exited the first half.

我想更詳細地介紹一下庫存。投影片 15 顯示了 DSI 集團和業務部門的發展軌跡，與 2023 年上半年末相比，總天數為 553 天，基本持平，我們在年初建立了一些庫存以支持產品發布，包括AETOS 和RENASYS EDGE，然後隨著我們上半場的結束，天數又開始減少。

Behind the overall number is also some encouraging progress on mix. One of the drivers of our long-term growth inventory was past over production of slow-turning SKUs and that has now reversed. Just in half one, we reduced inventory volume with the slowest turning units by 9%, given that the offsetting increases are in new growth products, that amounts to a significant improvement in our inventory health.

總體數字的背後是混合方面取得的一些令人鼓舞的進展。我們庫存長期成長的驅動因素之一是過去生產週轉緩慢的 SKU，而現在這種情況已經逆轉。僅僅半年時間，我們就將週轉最慢的庫存量減少了 9%，因為新增長產品的增加抵消了這一增量，這相當於我們庫存健康狀況的顯著改善。

Our goal remains to reduce both DSIs and the absolute dollar value of inventory. We expect improvement across all business units in the second half of 2024, as the new product launches progress and as we continue to deploy instrument sets. Longer-term improvement will mainly be down systematically better alignment of our production plans with commercial needs down to the SKU level. That's enabled by our improved SIOP process that we established under the 12-Point Plan and have now fully embedded.

我們的目標仍然是減少 DSI 和庫存的絕對美元價值。隨著新產品的推出取得進展以及我們繼續部署儀器組，我們預計所有業務部門在 2024 年下半年都會有所改善。長期改進主要是系統地更好地將我們的生產計劃與商業需求保持一致，直至 SKU 層級。這是透過我們改進的 SIOP 流程實現的，該流程是我們根據 12 點計劃建立的，現在已完全嵌入。

To conclude on the first-half financials, net debt ended the half year at $3.1 billion. This is an increase of $310 million from the start of the year, including $202 million from paying the final dividend for 2023 and $186 million from M&A, which is principally the acquisition of CartiHeal. The leverage ratio finished the half at 2.2 times adjusted EBITDA with the increase in the start of the year, reflecting our usually seasonality from timing of cash generation and dividend payments, we expect to end the year with a leverage ratio of around 2 times. As we continue to improve our cash generation, capital allocation will become more of a focus, and I'll come to our thinking around that in a moment.

總結上半年的財務狀況，上半年淨債務為 31 億美元。這比年初增加了 3.1 億美元，其中包括支付 2023 年末期股息的 2.02 億美元和併購（主要是收購 CartiHeal）的 1.86 億美元。隨著年初的增加，槓桿率在上半年結束時達到調整後EBITDA 的2.2 倍，這反映了我們通常從現金產生和股息支付的時間角度來看的季節性，我們預計到年底槓桿率將在2倍左右。隨著我們不斷改善現金產生能力，資本配置將成為更多焦點，我稍後將對此進行思考。

Next, I'll cover our outlook. After a strong second quarter, we're confident in our full-year revenue guidance of 5% to 6% underlying growth. That implies higher growth in the second half than the first, so I'll set out where that will come from. Within Orthopedics, you should expect a stronger half two overall, consisting of continued good growth in Trauma & Extremities, OUS Knees and Hips and Other Recon, together with improvement in US Recon as we build on our progress during the second quarter. We also expect improved Advanced Wound Management with further growth recovery, particularly in bioactives.

接下來，我將介紹我們的展望。經過強勁的第二季後，我們對全年營收指引 5% 至 6% 的基本成長充滿信心。這意味著下半年的成長將高於上半年，因此我將列出成長的來源。在骨科領域，您應該期待整體上的強勁增長，包括創傷和四肢、OUS 膝蓋和臀部以及其他偵察業務的持續良好增長，以及美國偵察業務的改善，因為我們在第二季度取得了進展。我們也預期高階傷口管理會得到改善，生長會進一步恢復，特別是在生物活性物質方面。

In Sports Medicine, growth will continue to be tempered by DBP, which will be a headwind for the whole of the second half. In ENT, you should also note a more challenging comparator, as we lap a period of backorder clearance that helped growth in the third quarter of 2023. And finally, second-half growth will benefit from 2 additional trading days versus 2023 compared to unchanged trading days in the first half. As we've previously commented, that benefit should mainly be seen in our Surgical businesses.

在運動醫學領域，成長將繼續受到 DBP 的抑制，這將成為整個下半年的阻力。在耳鼻喉科，您還應該注意到一個更具挑戰性的比較器，因為我們經歷了一段有助於 2023 年第三季成長的缺貨清除期。最後，與上半年交易日不變的情況相比，下半年的成長將受益於 2023 年增加 2 個交易日。正如我們之前評論的那樣，這種好處應該主要體現在我們的外科業務中。

For phasing within the half, the benefit of the trading days will come in the fourth quarter, although given where those trading days fall, we do not expect a fully proportional step up. Our trading margin guidance is also unchanged, at least 18%. While the margin headwind from VBP will step up in the second half, we expect to see our usual seasonal higher profitability.

對於在一半內分階段而言，交易日的好處將在第四季度顯現，儘管考慮到這些交易日的下降，我們預計不會完全按比例增加。我們的交易保證金指引也保持不變，至少為 18%。雖然 VBP 的利潤率阻力將在下半年加大，但我們預計獲利能力將出現通常的季節性走高。

Slide 18 shows the bridge to the second-half margin of 19.3% that's implied by our full-year target. And starting from 19.6% from the prior year, you'll see that the drivers are mostly very similar to what we saw in the first half. We expect headwinds of around 130 basis points from input cost inflation and merit increase, 50 basis points from transactional FX and tailwinds of around 120 basis points from revenue leverage and 150 basis points from efficiency savings.

投影片 18 顯示了我們全年目標所暗示的下半年利潤率 19.3% 的橋樑。從去年的 19.6% 開始，您會發現驅動因素大多與我們在上半年看到的非常相似。我們預期投入成本通膨和績效成長將帶來約130 個基點的逆風，交易性外匯將帶來約50 個基點的逆風，營收槓桿將帶來約120 個基點的逆風，效率節約將帶來約150個基點的逆風。

The additional factor will be around 130 basis points of headwind from China VBP pricing, with that lower Joint Repair pricing in place for the whole of the second half. That's a gross number, representing the pure price impact before any volume or cost mitigation and it's consistent with our previous indication of 70 basis points for the full year.

另一個因素是中國 VBP 定價的逆風約 130 個基點，整個下半年聯合修復定價較低。這是一個總數字，代表在任何數量或成本緩解之前的純價格影響，並且與我們先前預測的全年 70 個基點一致。

Our progress in half one also keeps us on track for our 2025 margin target of at least 20%. As in the first half of 2024, leverage from revenue growth should broadly offset the effects of input cost inflation and merit increases, with a significant step up in the pace of cost savings to drive the overall margin expansion. About two-thirds of this will be in manufacturing and distribution, including the benefits of our manufacturing footprint optimization, coming through as we move through the more advanced stages of our restructuring plans, but with continued productivity improvements also continuing in our operating expenses.

我們上半年的進展也使我們有望實現 2025 年至少 20% 的利潤率目標。與 2024 年上半年一樣，營收成長的槓桿作用應能大致抵銷投入成本通膨和績效成長的影響，並大幅加快成本節約步伐，推動整體利潤率擴張。其中約三分之二將用於製造和分銷，包括我們的製造足跡優化的好處，隨著我們進入重組計劃的更高級階段，我們將實現這一點，但隨著生產力的持續提高，我們的運營費用也將持續增加。

We still have to fully annualize China VBP in the first half. But when considered net of mitigation and other offsets, we do not expect a meaningful incremental effect on the 2025 trading margin. However, there is still an initial 2024 headwind. And as you're aware, it was not known at the time we set our margin target.

我們仍需對中國上半年的 VBP 進行全面年化。但考慮到緩解措施和其他抵銷措施後，我們預期 2025 年的交易利潤不會產生有意義的增量影響。然而，2024 年仍然存在最初的阻力。如您所知，我們設定利潤目標時並不知道。

We continue to seek opportunities, therefore, to make our business more efficient and offset such headwinds. Building on the existing work of the 12-Point Plan, we have identified further savings opportunities by applying a zero-based budgeting approach. This means that we can drive the cost savings higher than we initially planned for and also for longer.

因此，我們繼續尋求機會，提高我們的業務效率並抵消此類不利因素。在 12 點規劃現有工作的基礎上，我們透過應用零基預算方法確定了進一步的節省機會。這意味著我們可以比最初計劃節省更多成本，並且節省的時間也更長。

We now see total gross savings at $325 million to $375 million, which to be clear, includes both the total $200 million we already announced in 2023 and also further savings newly identified in this additional review. This will help us get to the 2025 margin target and continues to accumulate through 2027 with indicative phasing shown here in the chart.

我們現在看到總節省額為 3.25 億美元至 3.75 億美元，需要明確的是，其中既包括我們在 2023 年宣布的 2 億美元總額，也包括本次額外審查中新確定的進一步節省。這將有助於我們實現 2025 年的利潤率目標，並在 2027 年之前繼續積累，圖表中顯示了指示性的分階段。

I want to emphasize two things about this work. First, you can see on the right that they are comprehensive and detailed plans behind this. Over 40 initiatives across 7 work streams with specific target savings and timing for each initiative. The largest part will be from manufacturing and procurement, but there are savings across all parts of our business.

關於這份工作，我想強調兩件事。首先，你可以從右邊看到，背後是全面而詳細的計畫。7 個工作流程中的 40 多項舉措，每個舉措都有具體的節省目標和時間表。最大的部分將來自製造和採購，但我們業務的所有部分都可以節省成本。

Second, this is not a new restructuring plan. It's an extension of what we can deliver from the 12-Point Plan. And as such, you should expect that there will not be significant additional restructuring charges beyond what we've previously guided.

其次，這並不是新的重組計劃。這是我們可以從 12 點計劃中提供的內容的延伸。因此，您應該預期，除了我們先前指導的費用外，不會出現大量額外的重組費用。

We're also planning a change in our segmental reporting. After the move to the business unit model, this is the next step we envisage to help embed greater focus and accountability on costs as a normal way of operating. Under our current reporting, we have $211 million of corporate costs in the first half, which is around 9% of the total Smith & Nephew cost base.

我們也計劃改變我們的分部報告。在轉向業務部門模式之後，這是我們設想的下一步，以幫助將更多的關注和責任納入成本作為正常的營運方式。根據我們目前的報告，上半年我們的企業成本為 2.11 億美元，約佔施樂輝總成本的 9%。

There are a lot of different things included in the number, such as G&A costs from HR, Finance, Legal, and GBS, IT costs, shared sales support functions and some shared R&D costs. In reality, the majority aren't pure central costs, but are services to the business units. We started the process of adopting a full allocation of those attributable costs to the business units.

這個數字包含許多不同的內容，例如來自人力資源、財務、法律和 GBS 的一般管理費用、IT 成本、共享銷售支援職能以及一些共享研發成本。事實上，大部分並不是純粹的中央成本，而是為業務部門提供的服務。我們開始將這些可歸屬成本全部分配給業務部門。

And from the full-year 2024 reporting onwards, only costs that are specifically supporting the PLC will remain as corporate. As a result, corporate costs will be around 10% to 15% of what you can see today. By making this change, both the business units and the corporate center will have greater accountability for all of their costs, and better visibility on the really fully allocated underlying returns.

從 2024 年全年報告開始，只有專門支援 PLC 的成本才會保留為公司成本。因此，企業成本將約為今天的 10% 至 15%。透過做出這項改變，業務部門和公司中心都將對其所有成本承擔更大的責任，並更了解真正完全分配的基礎回報。

Coming now to those returns. Smith & Nephew has talked less about return on invested capital in the past, but we're making it more of a priority at both the group and the business unit level. There's good opportunity to drive returns higher through both profitability and asset utilization. We've given our target for margin expansion from both operating leverage and cost savings under the 12-Point Plan and the drag from restructuring and the EU MDR project should reduce over time.

現在來看看這些回報。過去，施樂輝很少談論投資資本報酬率，但我們在集團和業務部門層級都將其列為優先事項。這是透過獲利能力和資產利用率提高回報的好機會。我們已經根據 12 點計畫給出了透過營運槓桿和成本節約來實現利潤率擴張的目標，並且隨著時間的推移，重組和歐盟 MDR 計畫的拖累應該會減少。

I've already touched on how we're working to reduce inventory and both the manufacturing network optimization and instrument set utilization initiatives should help drive fixed asset turns. Given our progress already, we expect that the group ROIC will start to rise again in 2024. By division, that will come from Orthopedics and Advanced Wound Management, while Sports Medicine absorbs CartiHeal and VBP.

我已經談到了我們如何努力減少庫存，製造網路優化和儀器設備利用計劃應有助於推動固定資產週轉。鑑於我們已經取得的進展，我們預計集團 ROIC 將在 2024 年再次開始上升。按部門劃分，這將來自骨科和高階傷口管理，而運動醫學則吸收 CartiHeal 和 VBP。

As I mentioned earlier, capital allocation will become a more active consideration as our profitability and cash flow improves. So I've taken the opportunity to refresh our policy, which is shown on slide 23. The first priority remains investing in the business to drive organic growth and to meet our sustainability targets.

正如我之前提到的，隨著我們的獲利能力和現金流的改善，資本配置將成為更積極的考慮因素。因此，我藉此機會更新了我們的政策，如投影片 23 所示。首要任務仍然是投資業務，以推動有機成長並實現我們的永續發展目標。

The focus on ROIC at business unit level and the greater allocation of central costs will give us the visibility to target our investment more effectively, and we'll prioritize investment in the areas where we can expect to see the highest incremental returns on capital. The second priority is to invest in acquisitions. In line with our current approach, we'll target new technologies and high-growth segments where there is a strong strategic fit and with transactions that meet our financial criteria.

在業務部門層面對投資回報率的關注以及中央成本的更大分配將使我們能夠更有效地確定投資目標，並且我們將優先投資於預計資本增量回報率最高的領域。第二個優先事項是投資收購。根據我們目前的做法，我們將瞄準新技術和高成長細分市場，這些細分市場具有很強的策略契合度，並且交易符合我們的財務標準。

The third priority is to maintain an optimal balance sheet and an appropriate dividend. On leverage, we'll continue to target investment-grade credit ratings, and we're updating our target leverage ratio to around 2 times net debt to adjusted EBITDA. We have a progressive dividend policy. And from 2025 onwards, we expect a payout ratio of around 35% to 40% of EPSA. For 2024, we expect the total dividend to be flat year on year. And finally, we'll return surplus capital to shareholders via share buybacks, subject to these target balance sheet metrics.

第三要務是維持最佳的資產負債表和適當的股利。在槓桿方面，我們將繼續以投資等級信用評級為目標，並將目標槓桿率更新至調整後 EBITDA 淨債務的 2 倍左右。我們有累進的股利政策。從 2025 年起，我們預計派息率為 EPSA 的 35% 至 40% 左右。對於2024年，我們預計股息總額將與去年同期持平。最後，我們將根據這些目標資產負債表指標，透過股票回購將剩餘資本返還給股東。

I'd like to finish by summarizing my key areas of focus for the finance team shown on the slide. First, there's efficiency in driving cost savings to support margin expansion and reinvestment for growth. The expansion of our 12-Point Plan productivity targets is an early example of fact. Second, we'll also drive greater visibility and accountability through how we report both internally and externally as with the move to full absorption of attributable central costs. A third focus is cash conversion, and that's both on trading cash conversion, including reducing working capital and also free cash flow by reducing restructuring charges.

最後，我想總結一下投影片中所示的財務團隊的重點關注領域。首先，可以有效地推動成本節約，以支持利潤率擴張和再投資以促進成長。擴大我們的 12 點計畫生產力目標就是一個早期的例子。其次，我們也將透過內部和外部報告的方式來提高透明度和問責制，並全面吸收可歸屬的中央成本。第三個重點是現金轉換，這既涉及交易現金轉換，包括減少營運資本，也包括透過減少重組費用來實現自由現金流。

And finally, we have a renewed focus on improving return on invested capital. We're establishing greater visibility of capital returns at the business unit level, and we'll make use of that to drive improvement for both the group and the individual business units. And part of that is to have a disciplined approach to capital allocation in line with our updated framework. Taken together, this is a wide range of commitment to drive improved financial performance and create shareholder value.

最後，我們重新關注提高投資資本報酬率。我們正在業務部門層級建立更高的資本回報可見性，我們將利用這一點來推動集團和各個業務部門的改進。其中一部分是根據我們更新的框架採取嚴格的資本配置方法。總而言之，這是推動改善財務表現和創造股東價值的廣泛承諾。

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

接下來，我將把問題交還給迪帕克。

Thank you, John. So as I said in my introduction, we recognize at the start of this turnaround that while Smith & Nephew is a portfolio of fundamentally good businesses, we had a series of challenges around execution and culture that were holding us back. We said about addressing those challenges with a comprehensive 12-Point Plan, which is summarized on this slide. It should be familiar to you. It's nearly two years now since we first announced the program, so I'd like to take a moment to reflect on how far we've come.

謝謝你，約翰。因此，正如我在介紹中所說，我們在這次轉型之初就認識到，雖然施樂輝是一個由基本良好的企業組成的投資組合，但我們在執行和文化方面遇到了一系列阻礙我們前進的挑戰。我們說過要透過全面的 12 點計畫來應對這些挑戰，這張投影片對此進行了總結。你應該很熟悉。自從我們首次宣布該計劃以來已經近兩年了，所以我想花點時間回顧我們已經走了多遠。

Slide 27 has some of our achievements. There's a lot on here, and that reflects the scale of the transformation that we've delivered both by activity and also importantly, culture. There are three key things I'd like to particularly call out. First is the successful rewiring of Orthopedics, where we've addressed the long-standing challenges around getting products to customers.

幻燈片 27 展示了我們的一些成就。這裡有很多內容，這反映了我們透過活動以及更重要的是文化所實現的變革的規模。我想特別指出三件關鍵的事情。首先是骨科業務的成功重組，我們解決了向客戶提供產品方面長期存在的挑戰。

At the start of the plan, we had both implant shortages and rising inventory. And on the capital side, both instruments shortages and poor utilization. We've now turned all of that around. Implant availability has risen to our target levels across the key brands, and we've stopped the rise in inventory days at the same time. This is a similar picture with capital, where set availability is now at goal and set turns have risen 25% since the start of 2022. For the majority of Orthopedics, this operational improvement has already produced better sales growth.

在計劃開始時，我們面臨植體短缺和庫存增加的問題。而在資金方面，既存在工具短缺，又利用率不高。現在我們已經扭轉了這一切。主要品牌的植入物供應量已上升至我們的目標水平，同時我們也停止了庫存天數的上升。這與資本的情況類似，目前設定的可用性已達到目標，自 2022 年初以來設定週轉率已上升 25%。對於大多數骨科而言，這種營運改善已經帶來了更好的銷售成長。

The second point to highlight is the breadth of our productivity improvements. We've worked out all levers at the same time, including product pricing, procurement and manufacturing. Clearly, the full benefit isn't yet in our reported margins, but you should see it more clearly, as we move through '24 and into '25. And particularly, as we optimize our manufacturing footprint, with four facility closures that we've now announced.

要強調的第二點是我們生產力提高的廣度。我們同時制定了所有槓桿，包括產品定價、採購和製造。顯然，我們報告的利潤率尚未反映全部收益，但隨著我們從 24 年進入 25 年，您應該更清楚地看到這一點。特別是，隨著我們優化我們的製造足跡，我們現在宣布關閉四家工廠。

And third, we've continued to drive the businesses that were already performing well. The verticalized business unit structure means that Sports and Wound have stayed focused through the changes that were happening elsewhere and have delivered on their own set of key initiatives. In Sports, we've trebled the pace of cross-division deals to the point where 10% of the US capital sales are with cross-divisional support. In Wound, we've brought a new growth platform to our major markets with RENASYS EDGE.

第三，我們繼續推動已經表現良好的業務。垂直化的業務部門結構意味著運動和傷口部門在其他地方發生的變化中始終保持專注，並實施了自己的一系列關鍵措施。在體育領域，我們將跨部門交易的速度提高了兩倍，達到了 10% 的美國資本銷售得到跨部門支持的程度。在 Wound，我們透過 RENASYS EDGE 為我們的主要市場帶來了一個新的成長平台。

We do understand there's a lot of interest and where we still have more to do, and I'll spend a bit more time on our progress in Orthopedics. Importantly, we've already seen clear examples of operational improvements turning into revenue growth inflections. That's in Trauma & Extremities and in OUS Recon. These are both high-performing segments now. And when we started the 12-Point Plan, they were in a very different place. And Trauma had been a drag on overall group growth for many years.

我們確實知道有很多人感興趣，而且我們還有更多工作要做，我將花更多時間介紹我們在骨科方面的進展。重要的是，我們已經看到了營運改善轉變為收入成長拐點的明顯例子。這就是《創傷與四肢》和《OUS Recon》中的內容。這些現在都是表現優異的細分市場。當我們開始實施 12 點計劃時，他們處於一個非常不同的情況。多年來，創傷一直拖累集團整體發展。

The elements of how we've turned Trauma into an important growth driver mapped very closely to the plan initiatives. We delivered key innovation with the US launch of EVOS Large in the third quarter of 2022, and that completed our plates and screws offering. Next, our implant availability stepped up with EVOS Small, first hitting its LIFR target in third-quarter 2022, and then staying consistently at goal in subsequent quarters.

我們如何將創傷轉變為重要的成長動力的要素與計劃舉措密切相關。我們在 2022 年第三季在美國推出 EVOS Large，實現了關鍵創新，從而完善了我們的板和螺絲產品。接下來，我們的植入物可用性透過 EVOS Small 得到了提高，首先在 2022 年第三季度達到了 LIFR 目標，然後在接下來的幾個季度中始終保持這一目標。

The final piece was capital availability, when set deployments started to inflect upwards in the first quarter of 2023. With these things in place along with good commercial execution, implant sales accelerated in the quarters that followed, getting to growth above our history, and in fact, above the market. The growth outlook has been further supplemented by our entry into extremities, particularly with the recent launch of the AETOS Shoulder.

最後一個因素是資本可用性，當集部署在 2023 年第一季開始向上變化時。憑藉這些措施以及良好的商業執行力，植入物銷售在接下來的幾季中加速成長，成長速度超過了我們的歷史記錄，事實上，也高於市場水平。我們進入四肢領域，特別是最近推出的 AETOS 肩部產品，進一步增強了成長前景。

US Recon is not as far along in this path, but you can see that the same key elements are in there as well. On implant supply, key product LIFR reached its target in the fourth quarter of 2023 and capital availability followed soon after, with hip set shipment also at goal in Q4 and knee sets reaching their goal in the second quarter of 2024. This is also being supported by a steady stream of product launches over time such as the newly launched short-stem hip.

美國偵察隊在這條道路上並沒有走得那麼遠，但你可以看到同樣的關鍵要素也在那裡。在植入物供應方面，關鍵產品LIFR 在2023 年第四季度達到了目標，隨後資金到位，髖關節套件出貨量也在第四季度達到了目標，膝關節套件在2024 年第二季度達到了目標。隨著時間的推移，不斷推出的產品也支持了這一點，例如新推出的短柄髖關節。

So we're also making progress on improving Recon across commercial execution. You'll remember this slide from the last quarter. We had already done a lot, including establishing new business unit leadership with Craig Gaffin, who had previously led our Trauma & Extremities turnaround. And the team has made good progress on the remaining issues in the second quarter, with those items in orange on the slide.

因此，我們在商業執行方面的偵察改進方面也取得了進展。您會記得上個季度的這張投影片。我們已經做了很多工作，包括與 Craig Gaffin 建立新的業務部門領導層，他之前曾領導過我們的創傷和四肢扭虧為盈業務。團隊在第二季度的剩餘問題上取得了良好進展，這些項目在幻燈片上以橙色顯示。

I just highlighted better capital availability, and we now have a more settled commercial team. Key leadership roles are filled. Staff turnover is back to a low level, and the new growth-oriented compensation plan is now fully in place.

我剛才強調了更好的資金可用性，我們現在擁有更穩定的商業團隊。關鍵領導角色已填補。員工流動率回到較低水平，新的成長型薪酬計畫現已全面實施。

Between OUS Recon, Trauma & Extremities and Other Recon, 60% of Orthopedics is already growing well. We know that US Recon is taking longer to turn, but we also know that what we're doing works. The US is selling the same product portfolio that's performing well in Europe. Even with some different market dynamics, it's following the same playbook that has already succeeded in US Trauma, and it's being driven by the same leaders.

在 OUS Recon、Trauma & Extremities 和其他 Recon 之間，60% 的骨科已經發展得很好。我們知道美國偵察需要更長的時間才能轉變，但我們也知道我們正在做的事情是有效的。美國正在銷售與歐洲表現良好的相同產品組合。即使市場動態有所不同，它也遵循在美國創傷中已經取得成功的相同策略，並由相同的領導者推動。

Supporting that, we've continued the high cadence of innovation, which is central to our strategy. In Recon, we've announced the 510(k) clearance of CATALYSTEM. This is a new shorter hip stem suited to the direct anterior approach, which represents about half of the US market and is growing at double digits. CATALYSTEM is designed to be easier to prepare and insert, including simpler instrumentation in just one tray. So it will make us more competitive and differentiated in this fastest-growing segment of Hips.

為此，我們持續保持高節奏的創新，這是我們策略的核心。在 Recon 中，我們宣布了 CATALYSTEM 的 510(k) 許可。這是一種適合直接前入路的新型較短髖關節柄，約占美國市場的一半，並且正在以兩位數的速度成長。CATALYSTEM 的設計更易於準備和插入，包括在一個托盤中放置更簡單的儀器。因此，這將使我們在這個成長最快的髖關節領域更具競爭力和差異化。

In Robotics, we've continued to develop CORI with the addition of pre-operative planning. We have a uniquely flexible platform with CORI, supporting both bur- and saw-based resection and now also image-free and image-based planning for knee surgery. And Hip will soon follow. This takes us to 10 new features on CORI since 2022, and that has resulted in higher adoption with an installed base that's 70% larger than it was at the start of 2022. And importantly, utilization is also increasing.

在機器人技術領域，我們繼續開發 CORI，並添加術前規劃。我們擁有 CORI 獨特靈活的平台，支援基於車針和鋸的切除，現在還支援膝關節手術的無影像和基於影像的規劃。Hip 很快就會跟進。自 2022 年以來，CORI 新增了 10 個功能，採用率更高，安裝基數比 2022 年初增加了 70%。重要的是，利用率也在增加。

The innovation delivery has continued across the portfolio as well. The full commercial launch of AETOS Shoulder was in Q2 after the initial steps were made last year in 2023. We're also commercializing GRAFIX PLUS, which is a new version in the GRAFIX skin substitute range that is easier to handle and targets the growing post-acute market.

創新交付也在整個產品組合中持續進行。繼去年 2023 年採取初步措施後，AETOS Shoulder 於第二季全面商業化推出。我們也正在將 GRAFIX PLUS 商業化，這是 GRAFIX 皮膚替代品系列的新版本，更易於操作，並針對不斷增長的急性後市場。

Finally, I'd like to connect all of this to what we said we would do at last year's Meet the Management event. On growth, our aim is to be consistently a higher-growth company than in the past, with annual revenue growth of at least 5%. After a good Q2, we're on track for a third consecutive year of delivery against that based on the three components of higher growth we identified at that time.

最後，我想將所有這些與我們在去年的管理層會議活動中所說的要做的事情聯繫起來。在成長方面，我們的目標是始終成為一家比過去更高成長的公司，年收入成長至少5%。在經歷了良好的第二季度之後，根據我們當時確定的更高成長的三個組成部分，我們有望連續第三年實現交付。

The first was fixing the foundations of Orthopedics, as I've just set out. Most of the business unit is now growing strongly, and the team and the necessary operational fixes are in place for the rest. The second was to continue the strength of Sports Medicine and Advanced Wound Management. We're delivering that as well.

第一個是鞏固骨科的基礎，正如我剛才所說的。大多數業務部門現在都在強勁成長，其餘業務部門的團隊和必要的營運修復也已到位。第二是持續加強運動醫學和先進傷口管理的力量。我們也正在提供這項服務。

Sports Medicine maintained its long-term market outperformance in 2023. And although AWM has quarter-to-quarter volatility, it also had its third consecutive year of better growth at 6.4% versus 5% for the market and is set to accelerate in the second half.

運動醫學在2023年維持了長期的市場領先表現。儘管 AWM 存在季度波動，但它也連續第三年實現了更好的成長，成長率為 6.4%，而市場成長率為 5%，並將在下半年加速成長。

And we're very proud of the innovation we've delivered across our portfolio. We've launched more than 70 new products in the last five years. And the three key launches we define as the next wave of innovation are now starting to ramp up, AETOS, RENASYS EDGE, AGILI-C.

我們對我們在整個產品組合中所實現的創新感到非常自豪。過去五年我們推出了 70 多種新產品。我們定義為下一波創新浪潮的三個關鍵產品現已開始加速：AETOS、RENASYS EDGE、AGILI-C。

John has set out our progress on profitability and returns. Again, the trajectory is improving. The trading margin expansion in the first half puts us on track for this year's target, and we have further margin drivers in the pipe for 2025 and beyond. Cash flow is improving, working capital costs are falling and restructuring costs are set to also improve.

約翰列出了我們在獲利能力和回報方面的進展。再次，軌跡正在改善。上半年的交易利潤率擴張使我們有望實現今年的目標，並且我們在 2025 年及以後還有進一步的利潤驅動因素。現金流正在改善，營運資金成本正在下降，重組成本也將改善。

The 12-Point Plan is increasingly delivering the outcomes that we designed at 4. We identified the necessary actions for each priorities, and they translated first into improving KPIs, then into better revenue growth. With these results, you can see that better profitability and cash flow is starting to come through as well. There's still work to do. And the financial benefits will continue to accumulate, supported by a new embedded culture of focus and accountability. And I'm confident that shareholder value will follow.

12 點計畫正在越來越多地實現我們在 4 點中設計的成果。我們為每個優先事項確定了必要的行動，它們首先轉化為改善 KPI，然後轉化為更好的收入成長。透過這些結果，您可以看到更好的獲利能力和現金流也開始出現。還有工作要做。在新的專注和問責文化的支持下，財務收益將繼續累積。我相信股東價值將會隨之而來。

So with that, John and I will be happy to take your questions.

因此，約翰和我將很樂意回答您的問題。

I have three please. First, on margin. So how much conservatism is baked into the guidance for full year? And actually, could there be a meaningful upside to that 18%? Then on CORI, so you talked about the record quarter of placements -- sorry, revenues in Q2. How does that translate into placements and utilization? And do you have any targets you can share for placements for the full year?

請給我三個。首先，在保證金上。那麼全年指引中包含了多少保守主義成分呢？事實上，這 18% 能有有意義的上升空間嗎？然後在 CORI 上，您談到了創紀錄的季度安置——抱歉，是第二季的收入。這如何轉化為展示位置和利用率？您對於全年的安置有什麼目標可以分享嗎？

And then lastly, on the cost savings. So on the additional $125 million, $175 million of cost savings you identified, you said that there was no additional investment needed, but then you talked about restructuring charges in 2025. So can you just tell us what your expectations are for those charges? Thank you.

最後，關於節省成本。因此，對於您確定的額外 1.25 億美元、1.75 億美元的成本節省，您說不需要額外的投資，但隨後您談到了 2025 年的重組費用。那麼您能告訴我們您對這些費用的期望嗎？謝謝。

Sure. Thanks, Jack. So let me take the CORI question, your second question first. I'll hand it over to John, so you can take the first and third. So on CORI, we haven't issued quarterly targets, right? We're tracking -- we report revenue from Robotics and Other Recon. But what I would say is in terms of placements, we're into double-digit range in terms of growth period over period.

當然。謝謝，傑克。讓我先回答 CORI 問題，也就是你的第二個問題。我會把它交給約翰，所以你可以拿第一和第三。那麼在 CORI 上，我們還沒有發布季度目標，對嗎？我們正在追蹤——我們報告來自機器人和其他偵察的收入。但我想說的是，就安置而言，我們的成長率處於兩位數範圍內。

What I'm particularly encouraged by is actually the resonance that it's having across a range of care settings, not only in the ASCs in regular sized hospitals, but it's also in academic medical centers. And in the past, I've said we haven't necessarily been particularly strong in that part of our business in AMCs. And what I'm particularly pleased about is that we're getting traction in that segment as well. So it's serving -- or it's progressing as I had hoped it would.

我特別感到鼓舞的是，它在一系列護理機構中引起了共鳴，不僅在普通規模醫院的 ASC 中，而且在學術醫療中心中也是如此。過去，我曾說過，我們在資產管理公司的這部分業務中不一定特別強大。我特別高興的是我們在該領域也獲得了關注。所以它正在發揮作用——或者說它正在如我所希望的那樣取得進展。

The important thing also is we're not just placing these out there. We're placing it where there's a demand for it, where there's a need for it and where your surgeons are using them. So utilization is actually improving as well. So we'll come back at year end and tell you how we did in the year. I don't want to get into this quarterly kind of what it is. But what I'll leave you with is I'm pleased with not only placements, but also the fact that they're being used to healthy levels, right?

同樣重要的是我們不只是把它們放在那裡。我們將它放置在有需求的地方、需要它的地方以及您的外科醫生正在使用它們的地方。因此，利用率實際上也在提高。因此，我們將在年底回來告訴您我們這一年的表現。我不想談論這個季度的內容。但我要告訴你的是，我不僅對展示位置感到滿意，而且對它們被習慣到健康水平這一事實感到滿意，對嗎？

So I'll leave that. And John, do you want to take the other two?

所以我就離開了。約翰，你想帶走另外兩個嗎？

Sure. Your first question regarding margin guidance and conservatism. I mean, the guidance is the guidance. There is no conservatism built in. Obviously, for the first half, as we said, 16.7% was around the upper end of the range that we gave. It's important to remember, though, that we've got the full impact of VBP -- China VBP coming in the second half, and we signaled that in the margin slide.

當然。您的第一個問題是關於保證金指導和保守主義。我的意思是，指導就是指導。沒有內在的保守主義。顯然，正如我們所說，上半年 16.7% 大約是我們給出的範圍的上限。不過，重要的是要記住，我們已經受到了 VBP 的全面影響——中國 VBP 將在下半年推出，我們在利潤率下滑中就已經表明了這一點。

So with that uncertainty, we're comfortable in reiterating our 18% plus guidance for the full year. But I wouldn't assume just because there's been a strong first half, that there's any beat to that. In terms of the cost -- the restructuring cost question, I think we signaled at the very start of the 12-Point Plan, that will be circa $270 million, $275 million or so of restructuring costs associated with the 12-Point Plan. That guidance remains the same today.

因此，鑑於這種不確定性，我們很樂意重申全年 18% 以上的指導。但我不會因為上半場表現強勁就認為有任何擊敗。就成本而言——重組成本問題，我認為我們在 12 點計劃一開始就表示，與 12 點計劃相關的重組成本將約為 2.7 億美元、2.75 億美元左右。該指導方針至今仍保持不變。

Now, we will see probably circa, I'd say, $80 million or so in this year's number on restructuring. And if you do your math, that means there's a small rump likely to fall into 2025, probably around $10 million, $15 million or so, but we're not anticipating any further step up in restructuring. Then there may be some small cost, nominal costs associated with the additional savings that we've identified, but we'll take those above the line and where we're comfortable with the guidance on restructuring costs.

現在，我想說，今年的重組金額可能約為 8000 萬美元左右。如果你算一下，這意味著到 2025 年可能會有一小部分損失，可能約為 1000 萬美元、1500 萬美元左右，但我們預計不會進一步加強重組。然後可能會有一些小成本、名目成本與我們已經確定的額外節省有關，但我們將把這些成本放在我們對重組成本指導感到滿意的範圍之上。

Thanks. David Adlington of JP Morgan. Firstly, just on your additional focus on returns that was quite interesting. Could that lead you to reassess whether some of the low-return businesses still remain part of the portfolio? And then secondly, also on margins. But maybe as you think about the additional cost savings you've found now, obviously supporting next year's margins, but beyond next year, obviously begins to look into 2026, how you think about the margin trajectory beyond '25?

謝謝。摩根大通的大衛‧阿德林頓。首先，您對回報的額外關注非常有趣。這是否會讓您重新評估一些低迴報業務是否仍是投資組合的一部分？其次，也是在邊緣方面。但也許當您考慮現在發現的額外成本節省，顯然支持明年的利潤率，但明年之後，顯然開始展望 2026 年時，您如何看待 25 年後的利潤率軌跡？

Do you want to take that, John?

約翰，你想接受嗎？

Yes. So I'll take the last question on margin trajectory. I think we're very comfortable in reiterating this year's guidance so we're confident in the target set for next year. I'm not going to get drawn into a conversation on what's going to happen in 2026 and beyond.

是的。所以我將回答關於利潤軌跡的最後一個問題。我認為我們很樂意重申今年的指導，因此我們對明年設定的目標充滿信心。我不會陷入有關 2026 年及以後將會發生的事情的討論。

Obviously, you'll see from the trajectory on the chart, the cost savings we assume we've got a little bit more coming through in '26, a little bit more coming through in '27 on phasing. But as you can see from our various margin bridges that we provide you, there's lots of moving parts in the margin, inflation, costs, leverage, et cetera, et cetera.

顯然，您將從圖表上的軌跡中看到，我們假設我們在 26 年會取得更多的成本節省，在 27 年分階段會取得更多的成本節省。但正如您從我們為您提供的各種保證金橋樑中看到的那樣，保證金、通貨膨脹、成本、槓桿等方面存在著許多變化因素。

So at this stage, I think it's too premature to assume to what extent those additional cost savings, and they're relatively nominal, frankly. Are they going to fall through into margin in '26 and '27? Obviously, we'll provide you with that guidance closer to the time.

因此，在現階段，我認為現在判斷這些額外成本節省的程度還為時過早，而且坦白說，它們相對名義上的。他們會在 26 年和 27 年陷入利潤率嗎？顯然，我們會在臨近時間時為您提供該指導。

And in terms of returns, do you want to take that?

就回報而言，你願意接受嗎？

Well, look, I think that we as a management team, we're focused on returns at the business unit level. We're focused on returns at the group level. I think we see the opportunity to improve across the board, particularly in the ortho business, if you look at our ortho business but we're on a journey there.

嗯，我認為，作為一個管理團隊，我們專注於業務部門層面的回報。我們專注於集團層面的回報。我認為我們看到了全面改進的機會，特別是在骨科業務方面，如果你看看我們的骨科業務，但我們正在那裡的旅程中。

And so, we'll talk through the return numbers at the year end, and you'll see, we expect to see significant improvement in capital returns. But we're very focused on how we think about the portfolio, where we allocate capital. And as I said in my presentation, the intention will be very much to really only allocate capital where we consider we can get our highest incremental returns going forward.

因此，我們將討論年底的回報數字，你會發現，我們預期資本回報率將顯著改善。但我們非常關注如何看待投資組合以及如何分配資本。正如我在演講中所說，我們的目的是真正只在我們認為能夠獲得最高增量回報的地方分配資本。

Just one small build on that, David. Where we've historically struggled part of the culture change in our company is that often capital is treated as free. And the biggest impact was in the Orthopedics business. So when John, on his slide, puts up the focus on margins, which, of course, is important, right, because that's particularly on the orthopedic side, equally as important is the focus on asset efficiency.

大衛，這只是在此基礎上的一個小改進。歷史上，我們在公司文化變革中一直遇到的困難是資本通常被視為免費。影響最大的是骨科業務。因此，當約翰在他的幻燈片上將重點放在利潤率上時，這當然很重要，因為這尤其是在骨科方面，同樣重要的是對資產效率的關注。

So in terms of what we're changing and how we are operating and how we're behaving as a company, those are the key areas that we look to to get the improvements in return on capital and orthopedics that ultimately feeds into the better returns to the better road than we're targeting.

因此，就我們正在改變的內容、我們的營運方式以及我們作為一家公司的行為方式而言，這些是我們希望提高資本和骨科回報率的關鍵領域，最終帶來更好的回報走向比我們目標更好的道路。

And just to bring that to life and give you a little bit of color, I've actually got a meeting at the end of this week with the team to talk about how do we extend, for example, inventory performance metrics across a broader part of the business. It's mainly been focused on operations historically, how do we get our commercial teams really talking and thinking about inventory in the way that we would like them to.

為了將其變為現實並給您一點色彩，我實際上在本週末與團隊舉行了一次會議，討論我們如何在更廣泛的領域擴展庫存績效指標等的業務。歷史上它主要關注運營，我們如何讓我們的商業團隊真正以我們希望的方式談論和思考庫存。

To Deepak's point, historically, they've seen it as being free, and therefore, it's often on the business on a just-in-case basis rather than a just-in-time basis. So this additional focus on inventory and capital more broadly, I think will be supportive of the improved trajectories that we're expecting to see.

對於迪帕克來說，從歷史上看，他們認為它是免費的，因此，它通常是出於以防萬一而不是即時的目的。因此，我認為，更廣泛地關注庫存和資本將支持我們期望看到的改善軌跡。

Just to be clear, there's no signal here that you're looking at divesting any particular part of the business that doesn't meet any returns goals?

需要明確的是，這裡沒有任何信號表明您正在考慮剝離不符合任何回報目標的業務的任何特定部分？

No, I think we're very comfortable with the portfolio overall. This exercise is being done to ensure that we focus on returns across the group and the individual BUs and to make -- and part of the exercise of allocating out the corporate costs is an extension of that, so that we can appropriately measure the capital returns at the BU level. And therefore, from that, make sure that we're driving the right actions, the right behaviors across the business to improve those returns.

不，我認為我們對整體產品組合非常滿意。進行這項工作是為了確保我們專注於整個集團和各個業務部門的回報，並分配公司成本的工作的一部分是其延伸，以便我們能夠適當地衡量資本回報在BU層面。因此，以此為基礎，確保我們在整個企業內採取正確的行動、正確的行為，以提高回報。

But we're obviously always conscious of individual business units performance and returns. And we're conscious of it in the context of where do we want to allocate our capital. We have choices about where we invest, where we place our R&D funds, where we invest in driving growth in our business and providing visibility of these returns will give us a better means to make sure that we're allocating our cash in our capital where we expect to see the best returns.

但我們顯然始終關注各個業務部門的績效和回報。我們在考慮如何配置資本時意識到了這一點。我們可以選擇在哪裡投資、在哪裡放置研發資金、在哪裡投資以推動業務成長，並提供這些回報的可見性，這將為我們提供更好的方法，以確保我們將現金分配到資本中我們期望看到最好的回報。

Thanks. Hi. I'm Seb Jantet with Panmure Liberum. I'm just going back to returns again then. So like David, I welcome the focus on ROIC. Can I ask if you can give us a little bit of the difference of returns between the divisions, ROIC at the moment so we can get a sense of where that lies. And also, I just want to check, are you going to give us the assets by division so we can calculate this ourselves going forward? So that's the first question.

謝謝。你好。我是 Panmure Liberum 的 Seb Jantet。那我就再回去退貨吧。因此，和 David 一樣，我歡迎關注 ROIC。請問您能否給我們一些目前各部門之間的報酬差異（ROIC），以便我們了解差異在哪裡。另外，我只是想檢查一下，您是否打算按部門向我們提供資產，以便我們可以自己計算未來的資產？這是第一個問題。

Second question is on the bridge that you put for the 18% to 20% margin. I couldn't see anything in there for FX. Presumably, there will be some annualization of FX in that. Just want to check that 20% isn't a constant currency guidance?

第二個問題是關於您為 18% 到 20% 利潤率設置的橋樑。我在那裡看不到 FX 的任何內容。據推測，其中會有一些外匯年化。只是想檢查一下 20% 不是恆定的貨幣指導嗎？

And also within that, what are your assumptions for pricing? Because obviously, as we come out of a high inflationary environment, where we've been in a slightly unusual pricing environment for med techs. What are you assuming in terms of pricing in 2025?

此外，您對定價的假設是什麼？因為顯然，當我們走出高通膨環境時，醫療技術的定價環境有點不尋常。您對 2025 年的定價有何假設？

And then, the last question is coming back to these additional restructuring kind of savings. So great that I think you -- I think it's between $50 million and $100 million of additional savings. Perhaps, you could give us a little bit more detail on what those are, and why they don't have any costs with them?

然後，最後一個問題又回到了這些額外的重組節省。太棒了，我認為您可以額外節省 5000 萬至 1 億美元。也許，您可以向我們提供更多有關這些內容的詳細信息，以及為什麼它們沒有任何費用？

Sure. Maybe I'll take the pricing point, and then you can get the rest John.

當然。也許我會確定定價點，然後你就可以得到剩下的了，約翰。

Yeah. Sure.

是的。當然。

So on pricing, as I've commented previously, when the questions come up, our ability to pass through inflation-related pricing in the med-tech sector is quite limited. Against that backdrop, we've been able to pass through some of that pricing. We've also indicated that our plans or guidance that we gave didn't necessarily factor in exceptional pricing.

因此，在定價方面，正如我之前評論的那樣，當問題出現時，我們在醫療技術領域通過與通膨相關的定價的能力非常有限。在此背景下，我們已經能夠透過部分定價。我們也表示，我們提供的計劃或指導並不一定會考慮特殊定價。

And I did indicate that over this period, that we get back to more normalized kind of a pricing environment. That is the basis of our planning, and we do expect some of those tailwind on pricing or ability to pass through inflation-related costs to peter out here as we get into '24 and '25.

我確實指出，在這段時間裡，我們回到了更正常化的定價環境。這是我們計劃的基礎，我們確實預計，隨著進入“24 年”和“25 年”，定價或轉嫁通膨相關成本的能力方面的一些順風因素將逐漸消失。

So maybe, you can take the rest John?

那也許你可以接受剩下的約翰？

So I think your first question was, can I give you some indications to the current returns by business unit? First and foremost, we will split all of that out and give you that detail at the year end. And we're not going to disaggregate the balance sheet for you, but we will give you the ROIC number by business units. So you'll see that you can infer the assets if you want to.

所以我認為你的第一個問題是，我可以提供你一些有關業務部門當前回報的資訊嗎？首先也是最重要的，我們將把所有這些分開，並在年底向您提供詳細資訊。我們不會為您分解資產負債表，但我們會以業務部門為您提供 ROIC 數字。因此，您會發現，如果您願意，您可以推斷資產。

But to give you a little bit of color on it, it won't be of any surprise to you that if you look at our Sports business, as an example, that's broadly speaking, the group average. Our Wound business is better than the group average. And our Ortho business is worse than the group average, albeit on an improving trajectory.

但如果你以我們的運動業務為例，從廣義上講，這是集團的平均水平，那麼你就不會感到驚訝。我們的傷口業務優於團體平均。我們的 Ortho 業務儘管正在改善，但仍低於集團平均水準。

So our Ortho business probably at the end of this year will be circa half of what we would expect the group average to be, but we're driving that half to improve that return over time. But I would say, we'll give you a lot more detail at the year end when we give you those figures.

因此，到今年年底，我們的 Ortho 業務可能約為我們預期集團平均水平的一半，但我們正在推動這一半的業務，以隨著時間的推移提高回報。但我想說，當我們在年底向您提供這些數據時，我們將向您提供更多詳細資訊。

I think your second question was on the '25 profit bridge and whether or not the -- why no FX? Well, I mean, FX is notoriously difficult to forecast at the best of times. We do hedge going forward, roughly 75% of our cover. As we sit here today, based on our best guess estimations, we think that the FX impact on '25 will be relatively neutral. Maybe, I don't know, 10, 15 bps headwind. So we haven't included it on the chart, but we don't think it's going to be at this stage material.

我認為你的第二個問題是關於 25 年利潤橋以及是否——為什麼沒有外匯？嗯，我的意思是，即使在最好的情況下，外匯也很難預測。我們未來會進行對沖，大約占我們覆蓋範圍的 75%。當我們今天坐在這裡時，根據我們的最佳猜測，我們認為 25 年的外匯影響將相對中性。也許，我不知道，10、15 個基點的逆風。所以我們沒有將其包含在圖表中，但我們認為它不會成為現階段的材料。

And then your last question, I think was on restructuring. What gives us confidence that there aren't a huge additional restructuring costs coming through? And it is to your -- the depth of your question, which is the initiatives that are going to be driving that. So there's a lot of opportunities in our manufacturing business that we've talked about in the past. We're doing a lot of work on our lean manufacturing, how do we become more efficient. We're looking at our sales structures, where we're looking at our indirect procurement.

我認為你的最後一個問題是關於重組的。是什麼讓我們相信不會產生巨額額外重組成本？這取決於你的問題的深度，這就是推動這個問題的舉措。因此，我們過去談過，我們的製造業務有很多機會。我們在精益製造方面做了很多工作，如何變得更有效率。我們正在研究我們的銷售結構，我們正在研究我們的間接採購。

Indirect procurement is a big opportunity for us, for example. And these things, generally speaking, given the locations, given the task at hand, they're not going to require huge restructuring charges, additional restructuring charges. Now, there may be some costs associated with that, but we'll just take those into our underlying numbers.

例如，間接採購對我們來說是一個巨大的機會。一般來說，考慮到地點、手邊的任務，這些事情不會需要巨額重組費用、額外的重組費用。現在，可能會產生一些與此相關的成本，但我們將這些成本計入我們的基本數字中。

And just to clarify, our guidance is not on a constant currency. So we will need to work -- part of some of the initiatives to go work harder to identify those additional savings is to offset those headwinds this year and last year's FX, but there were other things, China VBP and other things, right? So it's not on a constant currency basis.

需要澄清的是，我們的指導並非針對固定貨幣。因此，我們需要努力 - 一些舉措的一部分是更加努力地確定這些額外的節省，以抵消今年和去年外匯的不利因素，但還有其他事情，中國 VBP 和其他事情，對嗎？所以它不是以恆定貨幣為基礎的。

We take these things in our stride.

我們對這些事泰然處之。

Thank you. Good morning. Richard Felton from Goldman Sachs. Two questions from me, please. First of all, on robotics. How far is Smith & Nephew away from having its fair share of robotics procedures in the US? And then, given some of the innovation and upgrades on CORI, do you see a plausible part of getting your fair share? That's question one.

謝謝。早安.高盛的理查費爾頓。請問我兩個問題。首先，關於機器人技術。施樂輝距離在美國獲得公平的機器人手術份額還有多遠？然後，鑑於 CORI 的一些創新和升級，您是否認為獲得公平份額的合理部分？這是問題一。

Question two is on China VBP. In your second-half margin bridge, you've got 130 basis points of margin headwinds, which John, you explicitly said was before any offsets. I was wondering if you could give us any sense of what those offsets are? And how much benefit might come with those? Thank you.

第二個問題是關於中國VBP。在你的下半年保證金橋樑中，你有 130 個基點的保證金逆風，約翰，你明確表示這是在任何抵消之前。我想知道您能否讓我們了解這些偏移量是什麼？這些可能帶來多少好處？謝謝。

Sure. I'll take that. So with CORI, we're already placing above our share position with CORI today. And we're still in the early stages of our journey. As I said, I'll come back at year end and give you a utilization number. I gave you that. I can't remember now whether it was at year end last year. We've given you the last number. It's fair to say we're substantially above that now, even as placements have grown, which is very encouraging, right? So we're replacing them for -- they're getting utilized. It's an explicit part of our strategy.

當然。我會接受的。因此，對於 CORI，我們今天已經將其股票位置置於 CORI 之上。我們仍處於旅程的早期階段。正如我所說，我會在年底回來並給您一個利用率號碼。我給了你那個。我現在記不清是不是去年年底了。我們已經給了你最後的號碼。可以公平地說，我們現在遠高於這個水平，即使展示位置有所增加，這非常令人鼓舞，對吧？所以我們要替換它們，因為它們正在被利用。這是我們策略的明確組成部分。

And that adoption has been driven by competitive activity, right, going out and representing. It's not just about CORI, right? It's about the whole portfolio. It's important to put that perspective out there, which is we've got a very competitive implant portfolio. Now, with CORI's enabling technology, that value proposition in combination is great.

這種採用是由競爭活動推動的，對吧，走出去和代表。這不僅僅是 CORI 的問題，對吧？這是關於整個投資組合的。重要的是要提出這樣的觀點，即我們擁有非常有競爭力的植體產品組合。現在，有了 CORI 的支援技術，這種價值主張的結合是偉大的。

But just double clicking on CORI, the ASC is a big growth driver in the United States. It's not so in other markets, at least not yet. And the form factor for CORI has always had resonance, and we've talked about that in the past, right? It's lighter form factors, flexibility, lower cost. All of those things lend themselves to the economics and the practices within an ASC. And of course, we're seeing that and we're placing above our share position within the ASC. But for us, equally as important is that this is flexible enough across a range of settings.

但只要雙擊 CORI，ASC 就是美國的一大成長動力。其他市場的情況並非如此，至少目前還不是。CORI 的外形尺寸一直引起共鳴，我們過去也討論過這一點，對吧？它的外形更輕、靈活性更強、成本更低。所有這些都適合 ASC 內的經濟學和實踐。當然，我們已經看到了這一點，並且我們將其置於 ASC 中的份額之上。但對我們來說，同樣重要的是它在各種設置中都足夠靈活。

And as I said earlier, in the AMCs, the advantage of having a form fashion like CORI is you can have one across multiple OR suites, right? So -- and that's an important piece of it. And it can coexist with other robotic placements, and we're starting to see that play out. In fact, the number of multiunit CORI deals has been increasing, was increasing, I called that out, in 2023. We're actually built upon that in '24.

正如我之前所說，在 AMC 中，擁有像 CORI 這樣的表單時尚的優勢是您可以在多個 OR 套件中擁有一個表單時尚，對嗎？所以——這是其中很重要的一環。它可以與其他機器人放置共存，我們已經開始看到這一點。事實上，我指出，到 2023 年，多單元 CORI 交易的數量一直在增加，而且還在增加。我們實際上是在 24 年建立的。

And I alluded to the cross-business unit deals in the context of sports. And in fact, what we're seeing is across Orthopedics and Sports and most of those involve CORI and one way, shape or form. So that's been very, very encouraging.

我還提到了體育領域的跨業務部門交易。事實上，我們所看到的是整個骨科和體育領域，其中大多數都涉及 CORI 和一種方式、形狀或形式。所以這非常非常令人鼓舞。

Some of the functionality that we've added has been an important driver of that as well. And you've seen through various presentations what they're and I want enumerate them for you, but you can look those up. One important thing I'll call out is we're in the very early stages of our hip journey.

我們添加的一些功能也是一個重要的驅動因素。您已經透過各種演示了解了它們是什麼，我想為您列出它們，但您可以查找它們。我要指出的一件重要的事情是，我們正處於時尚之旅的早期階段。

We called out the fact that we've just now launched CATALYSTEM, which is our offering for the fast-growing direct anterior approach, but there's a whole pipeline of functionality, we're going to be adding to CORI. So you'll see more of that to come in the coming quarters, that should further fuel uptake of CORI. So hopefully, that addresses the question. It doesn't give you the numerics you're looking for, but hopefully, the color and context here.

我們指出，我們剛剛推出了 CATALYSTEM，這是我們為快速增長的直接前路入路提供的產品，但我們將把一整套功能添加到 CORI 中。因此，您將在未來幾季看到更多此類內容，這將進一步推動 CORI 的採用。希望這能解決這個問題。它不會為您提供您正在尋找的數字，但希望能夠提供此處的顏色和上下文。

Very helpful. Thank you.

非常有幫助。謝謝。

And just on China VBP as you rightly call out, the second half '24 impact is 130 bps. So that annualizes effectively for 2024, 70 bps of headwind as we've said and guided to previously. That is both actually a gross and a net number, so pre and post any mitigations in the second half.

正如您正確指出的那樣，就中國 VBP 而言，24 年下半年的影響為 130 個基點。因此，正如我們之前所說和指導的那樣，到 2024 年，這實際上將出現 70 個基點的逆風。這實際上既是總量也是淨值，因此在下半年採取任何緩解措施之前和之後。

In the first half of '25, you've -- all else being equal, if you say (inaudible) 70 bps, so 60 bps of headwind at the gross level. But we believe in 2025, various actions can be taken to mitigate and offset that. There's a little bit around volume that comes through that we think can offset some of that headwind. There's a little bit about cost actions that we'll take that would also help us, and they will take a little bit of time to come through, hence, why you see them in the first half of 2025.

在 25 年上半年，在其他條件相同的情況下，如果您說（聽不清楚）70 個基點，那麼總體水平的逆風為 60 個基點。但我們相信，到 2025 年，可以採取各種行動來緩解和抵消這種影響。我們認為，成交量的一些變化可以抵消一些不利因素。我們將採取一些有關成本的行動，這也會對我們有所幫助，而且這些行動需要一點時間才能完成，因此，為什麼你會在 2025 年上半年看到它們。

And there's also -- we didn't -- haven't really called it out detail in the bridge, but there's a little bit of the fact that we're going to be lapping some of the pre-implementation effects that you've seen in the China number for the first half of this year. So when you look at it on a net-net basis, we think it's going to be -- we say broadly flat. They're calling out -- I mean, they may be 10, 15 bps or something of headwind, but we're comfortable with the numbers. And the guidance, obviously, at 20% plus for the full year.

還有——我們沒有——還沒有真正在橋中詳細說明，但有一點事實是，我們將採用您已經實現的一些實施前效果從今年上半年的中國數據中可以看出。因此，當你從淨值到淨值的基礎來看它時，我們認為它會——我們說大致持平。他們在大聲喊叫——我的意思是，他們可能是 10、15 個基點或某種逆風，但我們對這些數字感到滿意。顯然，全年指導值將成長 20% 以上。

Operationally, just one quick build on it. Obviously, we've got experience about mitigating actions, having gone to the Ortho VBP recently, that one contrast I'll draw for you in Sports versus Orthopedics is, in Orthopedics, it's pretty much the whole category that were impacted.

從操作上來說，只需在其基礎上快速建置即可。顯然，我們在緩解行動方面有經驗，最近去了 Ortho VBP，我將在運動與骨科方面為您做一個對比，在骨科方面，幾乎整個類別都受到了影響。

In Sports, it's a subset, right? It's a joint repair. The capital piece of it is not. So there's still commercial activity that's going to be needed to represent the portfolio and actually drive Sports across the board, right? So that is an important difference there between how orthopedics went.

在運動中，它是一個子集，對嗎？這是關節修復。它的主要部分不是。因此，仍然需要商業活動來代表投資組合併真正全面推動體育運動，對嗎？所以這是骨科的一個重要區別。

So the mitigating actions we need to take here have to take that into account. So I just want to operationally draw attention to the fact that it's not exactly the way Orthopedics went. But obviously, our decisions will be informed by our experience in Orthopedics.

因此，我們需要採取的緩解措施必須考慮到這一點。所以我只是想在操作上提請大家注意這樣一個事實：這並不完全是骨科的發展方向。但顯然，我們的決定將取決於我們在骨科方面的經驗。

Graham Doyle from UBS. Three questions, they should be quick. On the first-half R&D spend, that was down quite a bit. Is that a factor of last year being overly high or is the phasing? Or just to get a sense of what's going on, what's not.

瑞銀集團的格雷厄姆·多伊爾。三個問題，應該很快。上半年研發支出大幅下降。這是去年過高的因素還是階段性的？或者只是為了了解正在發生什麼事、沒有發生什麼事。

On the plant closures, are they done now? Have you got through most of that? Should we see a big step up then through second half and first half next year in terms of the margin there?

關於工廠關閉，現在完成了嗎？你已經完成大部分了嗎？我們是否應該看到明年下半年和上半年的利潤率大幅提高？

And then, one last one on ASCs, which is if you look back at your Ortho performance pre-COVID, it was there or thereabouts with market. And then, it obviously starts diverging versus peers. And there's lots of reasons that could be, but we did see ASC step up massively in terms of share. Do you think that was a factor in that? And are there things that you can do post this transformation, which get you back on a kind of front foot there?

然後，最後一個關於 ASC 的問題是，如果你回顧一下新冠疫情之前的 Ortho 表現，你會發現它已經存在或與市場差不多了。然後，它顯然開始與同行出現分歧。可能有很多原因，但我們確實看到 ASC 在份額方面大幅提升。您認為這是其中的因素嗎？在這次轉變之後，你可以做一些事情，讓你重新站穩腳步嗎？

Yeah, sure. So first on the R&D spend, that's a phasing thing. So we expect when you step up into Q2 -- into H2 and year on year, should be broadly comparable, and that has to do with the nature of when the spend occurs in any given program.

是的，當然。因此，首先在研發支出上，這是一個分階段的事。因此，我們預計，當進入第二季度、下半年和同比時，應該具有廣泛的可比性，這與任何給定計劃中支出發生時間的性質有關。

Second, in terms of ASCs, what I'd like to remind you here is a good chunk. I think we've previously given a number of 40% of our Sports business actually goes through ASCs. So we're actually quite well present in that channel. We know how to commercialize that channel. In that channel, we're in the earlier stages on the orthopedic side, particularly on the Recon side. The industry is as well, but we ourselves relative to the industry, are in the earlier stage of that.

其次，就ASC而言，我想在這裡提醒大家的是一個很好的內容。我認為我們之前已經給出了 40% 的體育業務實際上是透過 ASC 進行的。所以我們實際上在這個管道中表現得很好。我們知道如何將該管道商業化。在該管道中，我們處於骨科方面的早期階段，特別是偵察方面。產業也是如此，但我們自己相對於產業來說，正處於早期階段。

But with CORI, we've got a great offering, a great part of the value proposition to be relevant in that ASC setting. And it's not just CORI as one thing, but as we add more features and optionality into it, our value proposition of CORI just increases.

但透過 CORI，我們提供了出色的產品，其中很大一部分價值主張與 ASC 環境相關。這不僅僅是 CORI 本身，而且當我們在其中添加更多功能和可選性時，我們對 CORI 的價值主張就會不斷增加。

We just announced HOPCO, our arrangement with HOPCO. HOPCO, as ASCs further evolve and adapt to the requirements around reporting patient-reported outcomes and other things that becomes an important part of how you increase and enhance your value proposition into the ASC. So our agreement with HOPCO now is further evidence of us focusing on that channel, improving our offering into that channel, and ultimately, translate that into outsized performance there.

我們剛剛宣布了 HOPCO，即我們與 HOPCO 的安排。HOPCO，隨著 ASC 進一步發展並適應報告患者報告結果和其他事項的要求，這些要求將成為您如何增加和增強 ASC 價值主張的重要組成部分。因此，我們現在與 HOPCO 達成的協議進一步證明了我們專注於該管道，改進我們向該管道提供的產品，並最終將其轉化為超額業績。

But we're also very clear eyed about where we can compete, where we're advantaged in ASCs and where we're not. So we have a pretty good understanding of how we segment the market and very focused -- pretty focused on where we want to win and where we have a pretty compelling value proposition.

但我們也非常清楚我們可以在哪些領域競爭，哪些領域我們在 ASC 中具有優勢，哪些領域沒有優勢。因此，我們對如何細分市場有很好的了解，並且非常專注——非常專注於我們想要獲勝的領域以及我們擁有非常引人注目的價值主張的領域。

So all of that should translate into continued better performance there or above-market performance. As I called out, there's many layers to this whole cross-business unit deals and how we continue to do well with the portfolio we've got. One of those is further drive into that channel.

因此，所有這些都應該轉化為持續更好的業績或高於市場的表現。正如我所說，整個跨業務部門交易涉及許多層面，以及我們如何繼續利用現有的產品組合來取得良好的表現。其中之一是進一步進入該通道。

Plant closures. I mentioned four, we've just announced the closure of Warwick, which is a small site, focused on one particular product portfolio. As we look to drive further productivity and efficiency, we're taking volumes from some of the smaller sites and transferring that over to our larger sites within the Orthopedics network. So that's an additional closure into it.

工廠關閉。我提到了四點，我們剛剛宣布關閉 Warwick，這是一個小型網站，專注於一個特定的產品組合。當我們希望進一步提高生產力和效率時，我們正在從一些較小的站點獲取數據，並將其轉移到骨科網路內的較大站點。所以這是一個額外的封閉。

And the Memphis site produces for ex-US as well?

孟菲斯工廠也為美國以外的地區生產產品嗎？

Yes, it does.

是的，確實如此。

Sam from Berenberg. Just two questions for me. So first one on the 12-Point Plan, are any of the initiatives behind where you wanted them to be at this stage after a couple of years? And specifically in US Recon, are any of the operating metrics have improved as a result of the 12-Point Plan, giving you particular confidence in the second half recovery?

來自貝倫貝格的山姆。對我來說只有兩個問題。那麼，12 點計畫的第一個目標是，有哪些舉措是您希望他們在幾年後達到現階段的目標嗎？特別是在 US Recon，是否有任何營運指標因 12 點計劃而有所改善，讓您對下半年的復甦特別有信心？

And then on GRAFIX, just a quick one. Are you seeing any changes around customer stocking dynamics due to the draft LCDs in skin substitutes?

然後在 GRAFIX 上，快速一下。您是否發現由於皮膚替代品中的 LCD 草案而導致客戶庫存動態發生任何變化？

Yeah. So the 12-Point Plan, some of the lead indicators, we look at deal activity, particularly around CORI. So that's progressing well. Set turns, I indicated that a reference point was the start of 2022. And we've seen a nice healthy improvement.

是的。因此，我們在 12 點計劃和一些領先指標中關注交易活動，特別是圍繞 CORI 的交易活動。所以進展順利。輪流說，我指出參考點是 2022 年初。我們已經看到了良好的健康改善。

In other words, our capital efficiency is improving. And that's a result of a lot of actions commercially how we do business, right, commercial processes that contribute to that. And as we look at our wins, right, they bode well, right, in terms of how the second half is going to develop. So there are some lead indicators within the 12-Point Plan that gives us confidence that the second half, we'll start, to see the US Recon turn as well.

換句話說，我們的資本效率正在提高。這是我們開展業務的許多商業行動的結果，對吧，商業流程對此做出了貢獻。當我們審視我們的勝利時，對吧，就下半場的發展而言，它們是個好兆頭。因此，12 點計劃中的一些領先指標使我們有信心，我們將在下半年開始看到美國偵察行動的轉變。

GRAFIX. So with GRAFIX, we haven't seen particular changes in stocking behavior as a result of the LCD termination. Obviously, there's draft, and it's hard to forecast when that would go into effect, but we're expecting at some point this year, and that will, of course, usher in a different dynamic. But we haven't seen necessarily different stocking behavior with GRAFIX related to that.

圖形。因此，對於 GRAFIX，我們沒有看到 LCD 終止導致庫存行為特別變化。顯然，有草案，很難預測何時生效，但我們預計在今年的某個時候，這當然會帶來不同的動態。但我們還沒有看到 GRAFIX 與此相關的必然不同的庫存行為。

Hi. Caitlin Cronin from Canaccord Genuity. Two for me. First, in Trauma. You continue to note the importance of the EVOS plating launch. Stryker is launching its Pangea Plating System this year. Do you expect to see some competitive headwinds as their product goes out? And then on AGILI-C, how are you thinking about the commercialization strategy here as you ready your sales team? And for reimbursement, has that been established, what are the codes, et cetera?

你好。Canaccord Genuity 的 Caitlin Cronin。給我兩個。首先，在創傷方面。您繼續注意到 EVOS 電鍍推出的重要性。Stryker 今年將推出 Pangaea 電鍍系統。當他們的產品上市時，您是否預期會看到一些競爭阻力？然後在 AGILI-C 上，當您準備好您的銷售團隊時，您如何考慮這裡的商業化策略？至於報銷，是否已經確定，代碼是什麼等等？

I didn't acoustically hear the second. What product were you talking on the second question?

我沒有聽到第二個聲音。第二個問題你說的是什麼產品？

On AGILI-C, commercialization strategy there and reimbursement, if that's been established.

在 AGILI-C 上，有商業化策略和報銷（如果已經建立）。

Yeah, sure. On the first part with EVOS, we're well aware of competitive activity in that area. We feel very good about our offering. You are -- obviously the results of Trauma over the last couple of quarters give you a proof point of we'll do it commercially. So we don't underestimate our competition by any stretch, but equally, we're confident of our -- not only our product portfolio, but actually, the commercial team's ability to compete effectively. So we feel good about it.

是的，當然。在 EVOS 的第一部分，我們很清楚該領域的競爭活動。我們對我們的產品感覺非常好。顯然，過去幾季的創傷結果給了你一個證據，證明我們將把它商業化。因此，我們絕不會低估我們的競爭，但同樣，我們不僅對我們的產品組合充滿信心，而且實際上對商業團隊有效競爭的能力充滿信心。所以我們對此感覺良好。

With AGILI-C, as I mentioned, the initial cohort of our reps have been trained. Our early experience with it has been very good, as we go beyond the initial cohort of surgeons. The reimbursement will take time to establish. We're still in the early stages of activity around that, right?

正如我所提到的，透過 AGILI-C，我們的第一批代表已經接受了培訓。我們早期的經驗非常好，因為我們超越了最初的外科醫生群體。補償需要時間才能確定。我們仍處於相關活動的早期階段，對吧？

But we have good experience establishing this for other therapies, whether it's for REGENETEN, is the one that I would call out, right, it's the most proximate experience. So we've got a good team working on it, and we feel good about our ability to get the appropriate reimbursement for innovative technology like that, but we're still in the early stages of that.

但我們在為其他療法建立這一點方面擁有豐富的經驗，無論是 REGENETEN，我都會指出，對，這是最接近的經驗。因此，我們有一支優秀的團隊致力於此，並且我們對為此類創新技術獲得適當補償的能力感到滿意，但我們仍處於早期階段。

Questions on the phone?

電話裡有問題嗎？

(Operator Instructions) Julien Dormois, Jefferies.

（操作員說明）Julien Dormois，Jefferies。

Yes. Hi. Good morning, Deepak. Thank you for taking my questions. I have three, if I may. So the first one is from the previous one on Trauma. I mean, having covered the stock for quite a few years now. We've seen that business being very much like one step forward, two steps back. So just what is the figure of the business, and how comfortable are you about the business now being really back on a nice growth trajectory?

是的。你好。早上好，迪帕克。感謝您回答我的問題。如果可以的話，我有三個。所以第一個是來自上一個關於創傷的。我的意思是，現在已經覆蓋這隻股票好幾年了。我們已經看到，這項業務非常類似於前進一步，後退兩步。那麼，該公司的業務數據是多少？

Second question relates to probably more for John, and I mean you already disclosed a lot around this. But in terms of the restructuring adjustments, historically, we had a difference of about probably 6 to 7 percentage points between trading profit and reported margin. This has ballooned to something like 10 or 11 percentage points in the past few years, so is a return to normalize or, let's say, to historical range credible in your view? And what would be the time horizon for this?

第二個問題可能與約翰有關，我的意思是您已經對此披露了很多內容。但就重組調整而言，從歷史上看，我們的交易利潤和報告利潤率之間可能存在約 6 至 7 個百分點的差異。在過去幾年中，這一數字已飆升至 10 或 11 個百分點左右，那麼您認為回歸正常化或歷史範圍是否可信？其時間範圍為多少？

And the last question also comes back on wound biologics and reflecting around the draft LCD. Have you had more discussions on the ground and so on as to how it could impact your share of business in that segment, if you are one of the few lucky companies on the final list?

最後一個問題也回到了傷口生物製劑並圍繞 LCD 草案進行了反思。如果您是最終名單上為數不多的幸運公司之一，您是否進行了更多實地討論，以了解這將如何影響您在該領域的業務份額？

Okay. Well, thank you. So let me take the first and the third one, I'll then pass it to John. So on Trauma, acknowledged, your point about us taking a step forward and two steps back. But I do believe we're well positioned, and why do I believe this? We now have the full complement of products that we need.

好的。嗯，謝謝。所以讓我拿第一個和第三個，然後我會將其傳遞給約翰。因此，關於《創傷》，我們承認，您關於我們前進一步和後退兩步的觀點。但我確實相信我們處於有利位置，為什麼我相信這一點？我們現在擁有所需的全套產品。

So with EVOS, we've got EVOS Small, Large, the full plating system and full screws to be competitive. Trauma, in terms of the contracting occurs, typically, it's not contracts for large-sized plates or small-sized plates or screws that tend to contract for the whole kit. And we haven't necessarily approached that launch as well as we could have, right?

因此，透過 EVOS，我們提供了 EVOS 小號、大號、完整的電鍍系統和完整的螺絲，以具有競爭力。就收縮而言，創傷通常不是大尺寸板的收縮，也不是小尺寸板或螺絲的收縮，而是整個套件的收縮。我們還沒有達到我們應有的程度，對嗎？

It took us a long time to get the full product portfolio together, but we now have the full product portfolio. We can be competitive in RFPs, and it's a very competitive product. So the strength of the product, the completeness of the offering, and of course, all the improvements we've made around availability and commercial execution is a difference to how we were positioned in the past. So those are the ingredients that I feel good about in terms of our ability to execute, right? So hopefully, it will be now two steps forward without the step back that you've seen in the past.

我們花了很長時間才獲得完整的產品組合，但現在我們擁有了完整的產品組合。我們在 RFP 方面具有競爭力，而且這是一個非常有競爭力的產品。因此，產品的優勢、產品的完整性，當然還有我們圍繞可用性和商業執行所做的所有改進，都與我們過去的定位有所不同。因此，就我們的執行能力而言，這些是我感覺良好的要素，對嗎？因此，希望現在能夠向前邁出兩步，而不會像過去那樣出現後退的情況。

On the third around LCD. So first off, we're 1 of the 15 products that are covered. We feel really good about the quality of our offering, the innovation that's inherent in the products we offer, and really good about the clinical evidence that supports -- or the evidence that supports not only the clinical differentiation, but also the economic benefit of our products. So first principles, we are well positioned there.

第三個圍繞液晶。首先，我們是所涵蓋的 15 種產品之一。我們對我們產品的品質、我們提供的產品固有的創新感到非常滿意，並且對支持的臨床證據非常滿意——或者不僅支持臨床差異，而且支持我們的經濟效益的證據。因此，首要原則是，我們在這方面處於有利地位。

But I'll remind you again that it is draft coverage here. Now, in contrast to times in the past, it's all 7 MAX now have come out with this, so there's a high likelihood that it's going to go through. But until it's fully implemented, it's hard to say whether in the final form, it will be the same as what we've seen in draft, right?

但我會再次提醒您，這裡是草稿報道。現在，與過去相比，現在所有7 MAX都已經推出了這個，所以它很有可能會通過。但在它完全實施之前，很難說最終的形式是否會與我們在草案中看到的一樣，對嗎？

So this, as you know, is a pretty -- is a fairly complex reimbursement mechanism in this category. It is inherently difficult to predict how things are going to go, but you got to go back to first principles, and the first principle is the strength of our product portfolio and the evidence base that supports it. That's the hard stuff, and we're well positioned to navigate whatever reimbursement landscape looks like on that. But it's hard to forecast how this will really play out when the draft turns into final legislation.

所以，如你所知，這是一個相當複雜的報銷機制。預測事情將如何發展本質上是困難的，但你必須回到首要原則，而首要原則是我們產品組合的實力以及支持它的證據基礎。這是困難的事情，而我們已經做好了應對任何報銷情況的準備。但很難預測當草案變成最終立法時，這將如何真正發揮作用。

John, do you want to take the restructuring?

約翰，你想進行重組嗎？

Yeah. So on your question on restructuring charges, I think you were alluding to a history of there being a big delta between our unadjusted profits and our reported profits as a consequence of putting large amounts of restructuring charges through the P&L. I think just to be clear, we've clearly signaled the restructuring charges associated with the 12-Point Plan. They will come through. The bulk of the remain they come through this year, a little bit next year, as I said.

是的。因此，關於您關於重組費用的問題，我認為您提到了由於將大量重組費用計入損益表而導致我們的未調整利潤與報告利潤之間存在巨大差異的歷史。我想澄清一下，我們已經明確表示了與 12 點計劃相關的重組費用。他們會撐過去的。正如我所說，剩下的大部分都是今年完成的，還有一點是明年完成的。

Going forward, we're not saying there will never be any more restructuring charges. We're just saying we expect our restructuring charges to be significantly lower going forward. So there won't be this material gap, this historical gap that existed between underlying and reported. And I think that's been very clearly signaled.

展望未來，我們並不是說永遠不會再有任何重組費用。我們只是說，我們預計未來的重組費用將大幅降低。因此，基礎數據和報告數據之間不會存在這種實質差距和歷史差距。我認為這已經非常明確地發出了信號。

I understand there are more questions on the phone. Take the next one.

我知道電話裡還有更多問題。拿下一張。

Veronika Dubajova, Citi.

維羅妮卡·杜巴約娃，花旗銀行。

Hi, guys. Good morning, Deepak and John. Thank you for taking my questions. I have three, please. First one is, maybe you have -- just get a commitment from you on what you could consider a success as far as the US Hip and US Knee performance is concerned in the second half of the year? I appreciate your commitment to improving performance. Maybe, you can tell us what you consider a success versus a disappointment as you think about the second half of the year in the US Hip and Knee growth rates?

嗨，大家好。早上好，迪帕克和約翰。感謝您回答我的問題。我有三個，請。第一個是，也許您已經做出了承諾，就下半年美國髖關節和美國膝關節的表現而言，您認為可以取得成功？我感謝您對提升績效的承諾。也許，您可以告訴我們，當您考慮下半年美國髖關節和膝關節的成長率時，您認為什麼是成功，什麼是失望？

My second question is for John. And John, thank you for all the margin bridges. They're incredibly helpful. Just maybe challenge you a little bit. If I look at the second half versus the first half, you're expecting the same contribution -- a positive contribution from revenue leverage and on manufacturing efficiencies, but obviously, you do expect higher growth in the back half of the year and also more progress on restructuring. So just trying to reconcile those two statements in the bridges and whether there is something that is more into it.

我的第二個問題是問約翰的。約翰，謝謝你提供的所有保證金橋樑。他們非常有幫助。也許只是給你一點挑戰。如果我比較下半年和上半年，你會期待同樣的貢獻——收入槓桿和製造效率的正面貢獻，但顯然，你確實預計下半年會有更高的成長，而且還會有更多的成長。所以只是試著調和橋樑中的這兩個陳述以及是否有更多的內容。

I'm struggling to hear what you're saying. Maybe, if you can just -- we're in a massive hall and it's echoing around. So could you just repeat your question and perhaps a little bit slower. And if you can just pronunciate so that we can -- it's terrible acoustics in this hall. At least for me, I don't know about the rest of them.

我很難聽清楚你在說什麼。也許，如果你可以──我們在一個巨大的大廳裡，它在周圍迴響。那你可以重複你的問題嗎？如果你能發音，那麼我們就能——這個大廳裡的音響效果很糟。至少對我來說，其他人我不知道。

Of course. No problem. I was just asking about the second half margin rate. And if I look at the second-half bridge versus what you delivered in the first half, your expectation in second half is the positive contribution from revenue leverage and from manufacturing efficiencies is the same as it was in the first half. But could be, you are guiding for better growth in the back half of the year, and you should also be making more progress from some of the savings initiatives that you have in place. So just trying to reconcile those two data points. Why should there not be more sales growth leverage and efficiency leverage in the back half of the year? I hope that was clear.

當然。沒問題。我只是問下半年的保證金率。如果我將下半年的橋樑與上半年交付的內容進行比較，您對下半年的期望是收入槓桿和製造效率的積極貢獻與上半年相同。但有可能，您正在指導下半年實現更好的成長，並且您還應該從現有的一些儲蓄計劃中取得更多進展。所以只是試著協調這兩個數據點。下半年為什麼不應該有更多的銷售成長槓桿和效率槓桿呢？我希望這是清楚的。

And then, my third question is a bigger picture question. And then, my third question is the bigger question on the portfolio. And obviously, Deepak this is a question that comes up often in investor conversations, and I know you get it a lot. But just your commitment to the shape of the group as it stands, and any desire to rebalance the contribution from the three divisions, given their respective growth and return profiles. Thank you, guys.

然後，我的第三個問題是一個更大的問題。然後，我的第三個問題是關於投資組合的更大問題。顯然，迪帕克，這是投資者談話中經常出現的問題，我知道你經常遇到這個問題。但只要您對集團現有形式的承諾，以及考慮到三個部門各自的成長和回報狀況，重新平衡其貢獻的願望。謝謝你們，夥計們。

Thank you, Veronika. So I'll take the first and the second. I guess, well, there's a pattern here, and I'll pass it you, John, for the second. So in terms of growth, it's a great question in terms of what does success look like in the US. We're clearly below market, and we have been over the last couple of quarters. So first step is really get to near-market levels, and that's what we're getting to or expect to get to in the back half of the year.

謝謝你，維羅妮卡。所以我會採取第一個和第二個。我想，好吧，這裡有一個模式，我將把它傳給你，約翰，第二個。因此，就成長而言，美國的成功是什麼樣子是一個很大的問題。我們的價格明顯低於市場水平，過去幾季一直如此。因此，第一步是真正達到接近市場水平，這就是我們在今年下半年達到或期望達到的水平。

As we go into 2025, you should expect as the quarters progress for us to get to at least market levels and a little bit beyond. Certainly, in Trauma, we're above market; OUS, we're above market; In the US, getting to slightly above market as we exit 2025 is what we're targeting.

當我們進入 2025 年時，您應該預計，隨著季度的進展，我們將至少達到市場水平並稍微超出市場水平。當然，在創傷方面，我們高於市場水平； OUS，我們高於市場；在美國，我們的目標是在 2025 年退出時達到略高於市場水準的水準。

Now, it doesn't sound hugely aspirational. But relative to where we've been, it represents a significant set of efforts for us on the journey that we've been on to get to that point. And if we do that, we are well able to deliver the set of targets that we've committed to you.

現在看來，這似乎不是多麼令人嚮往的事。但相對於我們所取得的成就，它代表了我們在達到這一目標的過程中所做的一系列重要努力。如果我們這樣做，我們就能夠實現我們向您承諾的一系列目標。

Second, on the portfolio question, as you rightly point out, that does come up. And this is not an idle question, it's certainly not an idle question for us as a management team or the Board. But what I can tell you is the single biggest thing I can do for you all as shareholders is focus on driving operational improvement in Orthopedics. As I look at all the different alternatives, the single biggest value driver is Orthopedics humming along. As I said, there was 60% of our business, we are more or less either at or actually above market.

其次，關於投資組合問題，正如您正確指出的那樣，這確實出現了。這不是一個無聊的問題，對我們管理團隊或董事會來說，這當然不是一個無聊的問題。但我可以告訴您的是，身為股東，我能為大家做的最重要的一件事就是專注於推動骨科業務的營運改善。當我審視所有不同的替代方案時，最大的價值驅動因素是骨科的蓬勃發展。正如我所說，我們 60% 的業務或多或少處於市場水平或實際上高於市場水平。

We are focused on getting the US to place -- to the same place. I've outlined how specifically we're going to get there. With the US operating this way, that is the biggest unlock in terms of value. What that does also do for us is create options for us in terms of how we move forward as a group.

我們的重點是讓美國達到同樣的水準。我已經概述了我們要如何具體實現這一目標。在美國以這種方式運作的情況下，這是價值方面最大的釋放。這對我們也有好處，為我們作為一個團隊如何前進提供了選擇。

I've also said previously, I do see synergies across our businesses. Scale matters in med-tech. And at the scale that we are, we do need all of our businesses to be performing for the group to perform. And we're very, very cognizant of that, which is why in the 12-Point Plan even as we've outlined fixing Orthopedics, not to be euphemistic about it, but equally to actually continue to nurture our businesses Sports and Wound at the same time. And I think we've demonstrated that we are and have done that, with the last remaining bit US in place, we will have a portfolio that basically is in good shape. And that gives us the optionality in terms of how we move forward.

我之前也說過，我確實看到了我們業務之間的協同效應。規模在醫療技​​術中很重要。就我們目前的規模而言，我們確實需要所有業務都能夠為集團提供良好的表現。我們非常非常認識到這一點，這就是為什麼在 12 點計劃中，即使我們已經概述了修復骨科，但不是委婉地說，而是實際上繼續培育我們的體育和傷口業務同一時間。我認為我們已經證明我們正在並且已經做到了這一點，隨著美國剩下的最後一點到位，我們將擁有一個基本上狀況良好的投資組合。這給了我們前進的選擇。

So I don't want to dance around the topic. But hopefully, what you see us being laser-focused on the things that we can do right now to drive shareholder value, and that is the set of initiatives I've outlined.

所以我不想圍繞這個話題來跳舞。但希望你能看到我們專注於我們現在可以做的事情，以推動股東價值，這就是我概述的一系列舉措。

And on your question, vis-a-vis, the margin bridges for half one and half two, and you made the observation that why we asked the question, why are we not seeing more operational leverage in half two, if we've got higher growth and why we're not seeing more efficiency savings come through, as we obviously extend and deliver against our plan? The answer to that question, I think, is reasonably simple. Of course, when you look at the operational leverage, there's two components, of course, to that. There's the price component and there's a volume component.

關於你的問題，相對於第一半和第二半的保證金橋樑，你觀察到為什麼我們問這個問題，為什麼我們在第二半中沒有看到更多的營運槓桿，如果我們有更高的成長以及為什麼我們沒有看到更多的效率節省，因為我們顯然是根據我們的計劃進行擴展和交付的？我認為這個問題的答案相當簡單。當然，當您查看營運槓桿時，您會發現其中有兩個組成部分。有價格成分，也有數量成分。

What we're seeing in the second half is a slightly lower price component as a consequence of the timing of how increases are coming through. So roughly for the year, it's about a little bit less than 1% overall on price. But the timing of that is weighted more towards the first half than the second. And on the volume component, clearly, there's a volume step up in the second half, as there always would be. Net-net, it so happens that's the same number, the 1.2% leverage dropping through. So that's the first answer.

我們在下半年看到的是，由於價格上漲的時間安排，價格成分略有下降。大致而言，今年的整體價格漲幅略低於 1%。但這段時間安排更傾向於上半場而不是下半場。在成交量部分，很明顯，下半場成交量有所增加，一如既往。淨淨，剛好是相同的數字，1.2% 的槓桿率下降了。這就是第一個答案。

The second question was about efficiency savings. The reality here is that there's lots of moving parts. As I said to you, there's about 40-plus initiatives underway across 7 different work streams and they're each at different levels of maturity and cost base. And so, some of that are already well advanced and have been, frankly, well advanced for 18 months, so these are things that have been in train for some time now are now starting to pay dividends.

第二個問題是關於效率節約。現實情況是，有很多移動部件。正如我對您所說的，7 個不同的工作流程中約有 40 多個計劃正在進行中，每個計劃的成熟度和成本基礎水平都不同。因此，其中一些已經進展順利，坦白說，已經進展了 18 個月，所以這些已經醞釀了一段時間的事情現在開始帶來紅利。

Others that we're starting and started later, like in many of these initiatives, result in a cost increase, sometimes before you have to go through the wave of then delivering the efficiency. And so, this is just merely an offsetting of multiple different initiatives over time. And again, it so happens that broadly speaking, the net benefit of that is the same in the first half and the second.

我們正在啟動和稍後啟動的其他計劃（例如許多此類舉措）會導致成本增加，有時甚至在您必須經歷提高效率的浪潮之前。因此，這只是隨著時間的推移多種不同措施的抵消。再說一次，從廣義上講，上半年和下半年的淨收益是相同的。

There's a lot of stuff going on at the moment, but probably in this year, there's a little bit of a drag in the second half, but actually starts to really pay back in the first half of 2025. So that's the reason why you don't see that both the operational leverage flow through in the second half and also the efficiency savings. There's lots of different moving parts to delivering those efficiency savings.

目前發生了很多事情，但可能在今年下半年會受到一些拖累，但實際上在 2025 年上半年才開始真正得到回報。這就是為什麼你看不到下半年營運槓桿和效率節省的原因。有許多不同的活動部件可以實現這些效率節省。

Thank you so much. Really appreciate it.

太感謝了。真的很感激。

Robert Davies, Morgan Stanley.

羅伯特戴維斯，摩根士丹利。

Yeah. Good morning. Thanks for taking my questions. I have three. The first one was just on the comment you made on previous quarter around the turnover in sales reps in the US business and the compensation structure you got there. I'd just be curious to get an update on where we are on that.

是的。早安.感謝您回答我的問題。我有三個。第一個是您對上一季美國業務銷售代表的營業額以及您在那裡的薪酬結構所做的評論。我只是想了解我們在這方面的最新進展。

The second one was just on your indicative phasing of savings on slide 20. There's quite a big step-up between 2024 and 2025. Just looking at the kind of key risks for what's actually coming through there? And if there's any chance there could be a slippage beyond '25?

第二個是關於您在幻燈片 20 上指示性的分階段儲蓄。2024 年到 2025 年之間會有相當大的進步。只是看看那裡實際發生了什麼主要風險？25年後是否有可能出現下滑？

And then, just the final one was really around where your view was on elective procedure volumes by different regions. You had different messages from various companies of tailwinds versus were already normalized. Just be curious to get your views on where we are in that. Thank you.

然後，最後一個問題實際上是關於您對不同地區的選擇性手術量的看法。來自不同公司的順風車資訊與已經正常化的資訊不同。只是好奇地想聽聽您對我們在這方面的進展的看法。謝謝。

Sorry, I missed your third question. I'm sorry.

抱歉，我錯過了你的第三個問題。對不起。

I got it.

我得到了它。

Sorry. The elective procedure volumes.

對不起。選擇性程序卷。

Yeah. I got it. So in terms of sales rep turnover, what I'd indicated in 2023 is through a significant part of the year, in the US had gaps in territories. We had a leadership gap, in fact, in a significant part of the US, and that was one of the contributors to actually some of the performance challenges in the back half of the year, especially. As we now are in 2024, we filled all of the territories.

是的。我得到了它。因此，就銷售代表營業額而言，我在 2023 年指出的是，在這一年的大部分時間裡，美國各地區都存在差距。事實上，我們在美國的很大一部分地區都存在著領導力差距，這實際上是導致今年下半年出現一些績效挑戰的原因之一。現在是 2024 年，我們已經填滿了所有地區。

So we're operating essentially at full strength in the US. All of the leadership team is in place. So we are at full strength. And in terms of turnover in our reps, that's actually come down to normalized levels, right? So all of those point to a level of stability in the organization.

因此，我們在美國基本上全力運作。領導班子全部就位。所以我們是全力以赴。就我們代表的營業額而言，這實際上已降至正常水平，對吧？因此，所有這些都表明組織具有一定程度的穩定性。

What's also important is product availability. That's been a very significant challenge for our commercial team. And with knee sets finally falling into place in Q2 on the back of hips really getting there in Q4 of last year and replenishment improving right along the year, product availability, I can tell you, is no longer a topic for reps. And that's been one of the factors driving rep churn.

同樣重要的是產品的可用性。這對我們的商業團隊來說是一個非常重大的挑戰。隨著膝蓋套件最終在第二季度在臀部後部就位，去年第四季度真正實現這一目標，並且補貨量在這一年中不斷改善，我可以告訴您，產品可用性不再是銷售代表的話題。這是導致銷售代表流失的因素之一。

So we're in a good place on product availability. We're in a good place in terms of leadership there. We've been able to attract actually good talent across the industry into our organization because people are attracted by our product portfolio. We've got great products in Recon. Yes, our share position is reflected, but if you are a patient, if you're a surgeon, you know how good our products are and our reps see that. So we've been able to recruit good reps.

因此，我們在產品可用性方面處於有利地位。就領導力而言，我們處於有利位置。我們之所以能夠吸引整個產業的優秀人才加入我們的組織，是因為人們被我們的產品組合所吸引。我們在 Recon 中有很棒的產品。是的，我們的份額地位得到了反映，但如果您是患者，如果您是外科醫生，您就會知道我們的產品有多好，我們的代表也看到了這一點。所以我們已經能夠招募到優秀的代表。

And finally, on the compensation scheme, we've rolled that out, right? As I've indicated, in 2022, we're really largely up until that point, operating in a mode of retention-based schemes. Now, there are good reasons for that. It's because historically, we've had challenges retaining the business for product availability reasons, product portfolio gap reasons and other things, so the challenge around even retaining business. We're now with all of those things, largely at hand, we're able to be much more front-footed and we've got an incentive scheme that rewards that.

最後，關於補償計劃，我們已經推出了，對嗎？正如我所指出的，到 2022 年，我們實際上基本上已經到了那時，以基於保留的計劃模式運作。現在，這是有充分理由的。這是因為從歷史上看，由於產品可用性原因、產品組合差距原因和其他原因，我們在保留業務方面遇到了挑戰，因此即使保留業務也面臨挑戰。現在我們已經擁有了所有這些東西，大部分都在手邊，我們能夠更加主動地採取行動，並且我們已經制定了獎勵計劃。

Not everybody is going to like that, right? We expect that. But it's now been rolled out and people understand what they need to do to earn their quota. So that is all at hand.

不是每個人都會喜歡這樣，對吧？我們期望如此。但現在它已經推出，人們明白他們需要做什麼才能獲得配額。所以這一切就在眼前。

And then, in terms of procedures, I've commented in the past that in Recon because we've had performance challenges of our own, I don't tend to comment independently with our own data on how we're doing. We see all of the data sets in the industry that everybody else does, right? But when you have performance challenge in that business, it can be hard to parse what's market and what's you.

然後，就程序而言，我過去曾評論過，在偵察中，因為我們自己也遇到了性能挑戰，所以我不傾向於用我們自己的數據來獨立評論我們的表現。我們看到了其他人看到的行業中的所有數據集，對吧？但是，當您在該業務中遇到績效挑戰時，可能很難解析市場是什麼以及您是什麼。

We can do that very well in our other businesses in Sports and Other things. We have a pretty good view of what's happening in the market. But in Ortho, particularly in Recon, I've been somewhat circumspect about commenting on what's actually happening in the market, independent of what we all see with other companies reporting. What I can say with that proviso is the market seems pretty robust, back to more normalized levels.

我們可以在體育和其他領域的其他業務中做得很好。我們對市場上正在發生的事情有很好的了解。但在 Ortho，特別是在 Recon，我對市場實際發生的情況發表評論一直有些謹慎，與我們在其他公司報告中看到的情況無關。我可以說的是，市場似乎相當強勁，回到了更正常化的水平。

We clearly saw in Q1 and Q2 of last year, a very frothy market. We're not in that world right now. We're in a more normalized world. But -- so for us, our assumptions as far as the guidance that we gave assumed a normalized market. So we're not counting on a market tailwind to do our numbers.

我們在去年第一季和第二季清楚地看到，這是一個非常泡沫的市場。我們現在不在那個世界。我們正處於一個更正常化的世界。但是，對我們來說，我們給出的指導假設是假設市場正常化的。因此，我們並不指望市場順風來實現我們的數據。

Hopefully, it gives you the color around. It is not a straightforward answer as you might like, but at least you know our thought process there.

希望它能為您提供周圍的顏色。這不是您可能喜歡的簡單答案，但至少您知道我們的思考過程。

And just on your question around the phasing of savings, the chart shows, as you know, accumulated savings over time on a '23 base. And as you rightly highlight, there's a big assumed step up in 2025 versus 2024. That shouldn't obviously be a surprise to you because our margin guidance, the '25 is north of 20%, and our margin guidance of '24 is north of 18%. So that's what it takes to get to our 20%.

正如您所知道的，關於分階段儲蓄的問題，該圖表顯示了以 23 年為基礎隨著時間的推移而累積的儲蓄。正如您正確強調的那樣，預計 2025 年與 2024 年相比將出現重大進步。這顯然不會令您感到驚訝，因為我們的 25 年利潤率指導高於 20%，而我們 24 年的利潤率指導則高於 18%。這就是達到 20% 所需要的。

The reason for that phasing is a lot of the savings that we're forecasting to come through from manufacturing, we see a big step up. But actually, if you look at the chart and you unpick the detail, it's really across all the areas, as we start to implement these initiatives, start to deliver. We get sort of some within year effects in the first year and then we got a full annualization in the second year and then they build.

進行這一階段的原因是我們預計製造業將節省大量成本，我們看到了巨大的進步。但實際上，如果你看一下圖表並取消細節，你會發現它確實涉及所有領域，因為我們開始實施這些舉措，開始交付。我們在第一年得到了一些年內的影響，然後我們在第二年得到了完整的年度化，然後它們就建立起來了。

So that's really explaining the nature of these savings coming through and the timing. I think you also asked a question about beyond '25. And again, you can see there's a little bit of further coming through in '25 and '26, which all else being equal, obviously helps margin in those years. But as I said, what I don't want to happen is for this to translate into any form of indications, as to where margins will be in '26 and '27.

這確實解釋了這些節省的性質和時機。我想你也問了一個關於「25 年後」的問題。再說一次，你可以看到 25 年和 26 年有一些進一步的進展，在其他條件相同的情況下，這顯然有助於那些年的利潤率。但正如我所說，我不希望發生的是，這會轉化為任何形式的跡象，例如 26 年和 27 年的利潤率。

There's a lot of time between now and then, a lot of moving parts and we'll come back to that, obviously, in due course. The one thing I would want to make clear, we said all along that the '25 margin target is challenging. And it is challenging because of all the reasons we've talked about. We've got the inflationary headwinds, and they've been perhaps a little bit stickier than we first envisaged.

從現在到那時還有很多時間，有很多變化的部分，顯然，我們會在適當的時候回到這一點。我想澄清的一件事是，我們一直說 25 年的利潤率目標具有挑戰性。由於我們已經討論過的所有原因，這具有挑戰性。我們遇到了通貨膨脹的逆風，而且它們可能比我們最初設想的更棘手。

We've got the China VBP which was -- came out post us providing this target range. And so, we've to necessarily get into the business, get into the detail, look at the 12-Point Plan and we've been able to identify these additional savings, which help us offset some of those headwinds and challenges. But the target of '25 remains challenging, but we're confident in reiterating the guidance today of north of 20%.

我們已經得到了中國 VBP，這是在我們提供這個目標範圍後發布的。因此，我們必須深入業務，深入細節，查看 12 點計劃，我們已經能夠確定這些額外的節省，這有助於我們抵消一些不利因素和挑戰。但 25 年的目標仍然具有挑戰性，但我們有信心今天重申 20% 以上的指導。

I think with that, I understand, we're at time. So wanted on behalf of John, myself and the management team, thank you very much for your attention and engagement, and look forward to coming back to you next quarter reporting on progress. Thank you.

我想，我明白，我們到時候了。我謹代表約翰、我本人和管理團隊，非常感謝您的關注和參與，並期待在下個季度向您報告進展。謝謝。