Sezgi Oezener: Hi. Thanks for taking my questions, and thanks for the presentation. The first one is on the 4,000 plus now 10,000 — plus 6,000 now 10,000 of personnel that you have decided to reduce. We see that in the last quarter since you’ve announced the 4,000, the number came down roughly by 2,000. So, what’s the timeline for the rest of the 4,000? I know for the 6,000, you said 3,000 will be reduced in 2023. So, the rest of this, and also the breakdown from the different departments, where do you expect this reduction to be more? And post this reduction, what kind of wage inflation are you calculating? And my second question relates to the insurance payoff for the product liabilities. You mentioned in the past that you had some insurance on the products.
I know that you don’t have an estimate of the legal liability or the other legal costs that come with the recall, but do you have an estimate on the insurance liability, and how that adds up for you? And the last one will be, you mentioned that you’ve shifted the R&D more from commercial to the business sides. Could this have a negative impact in terms of reducing the synergy that you extract from this? Thank you.
Roy Jakobs: Thank you, Sezgi. Let me take the first and third question, and then Abhijit can take the second. So, let me be very clear on the reduction of force. And let me also again stress how painful it is but how necessary it is, and that we will, of course, execute this with the most respect and also with best care for our people, trying to get them to other workplaces, and we need to give them a plan that goes with it. Now, if you look to the numbers, I announced in Q4 that we would reduce 4,000. Of those, we have executed 3,000 in 2022. Then, today, we announced another 6,000. Of that 6,000, we will do 3,000 in 2023. If we then take the remaining 1,000 of 2022, it will mean that we have another 4,000 that we will have to reduce this year.
It also means that of the total, we have 3,000 remaining, which we’ll do in ’24 up to ’25. There is a phasing that actually relates to the first interventions that we are taking now as announced in 2022, it was a generic reduction across the organization. We’re now going very targeted with the shift of model. We indeed take on the functions, in particular, to lean out the organization and bring more into the business, but also strengthen the regions. And then, we have a shift in innovation model that also plays part, but that’s also a big part of shift of resources more into the businesses. And that ties into your second question. We were doing 30% of our investment in research or in R&D in corporate research. Now, we are shifting that to doing 90% in the business.
We still will have €1.7 billion of investment in innovation. So, innovation is the core of what we do, will remain core to what we do. But we want to get it closer to the customer so that we increase the innovation cycle and make it as patient and people centric, but also, we want to get better returns by doing fewer projects and scale them more. So that’s actually what we intend to achieve with this different approach to innovation. So, we expect actually to have even more relevant and impactful innovation to deliver to our customers, to our patients and our consumers, but doing it in a more efficient manner while still spending above industry on innovation. Maybe you can take a second.
