Veronika Dubajova: Hi, good morning. And thank you guys for taking my questions. I hope you can hear me well. I have three, please. One, can we just start with the 5% to 6% organic sales growth guidance for 2023. And I would love to hear from you what that assumes for sort of procedure volumes or utilization. And Deepak, if you can comment on how the year has started related to that, that would be super helpful. Then my second question is on the midterm margin target. You had made some comments about how the improvements would be back-end loaded. Would just love for you to be a bit more specific. If we do assume you’re at 17.5% in 2023, how should we think about the remaining 250 basis points being split between 2024 and 2025?
And maybe just related to that, for Anne-Francoise. What is the assumption that you’re making about some of the inflationary headwinds that we’ve seen on the cost of goods sold that’s embedded into that 20%? I’m thinking sourcing like freight, logistics costs and raw materials. Thank you, guys.
Deepak Nath: Sure, Veronika. So I’ll take the first two around the 5% to 6% kind of midterm revenue. As I indicated there is — it is spread across the franchises in terms of what the drivers of that growth are. We’ve talked about kind of the price and the volume components of it. And within Orthopaedics, we do expect procedures to return to normal, honestly, in 2022. We were less able to capitalize on the return to normalcy in terms of procedure volumes for the reasons we’ve talked about in the past. But we don’t see the procedure volume or the market procedure volume being kind of the rate limiting step for us. Or said differently, we expect that more or less procedures are back to normal, and we will be operating within that world.
It doesn’t mean that hospital systems around the world are challenged for labor shortages or other things, right? And we don’t yet know whether there’ll be another spike in COVID and how that will impact procedures. But our assumption for 5% to 6% is built on essentially procedure volumes in the world being as they are today and us being able to better participate in that than we have in the recent past. So that’s the anchor to the 5% to 6%. But as I mentioned, not just about Orthopaedics. It’s going to fuel the growth that’s continued outperformance in Wound and Sport. So we don’t need to blame at that point. The second, in terms of margin. I wouldn’t take a straight line from 17.5% to 20% plus, Veronika. So there will be, I would say — nor will it be a step change where it’s 17.5% and kind of go flat and then all of a sudden magic happens in 2025.
So I wouldn’t do that, either. So I’m not saying a lot when I say that, although perhaps my second statement also has information contained in that. So I would expect, as I mentioned, I’ll go back to kind of where we started the Q&A, which is there are elements of our margin expansion that will come in chunk sequentially from one quarter to the next revenue growth driving margin expansion, you should expect. Of course, there’s a seasonality to our business, right, particularly in Orthopaedics. So you need to kind of factor that out, right, because typically, our second half of the year is higher margin than the first half of the year. But against that backdrop, you should expect the operating leverage element of margin expansion to happen sequentially.
