Ladies and gentlemen, welcome to the full year 2020/2021 results presentation conference call and live webcast. I am Sandra, the conference call operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Thomas Bernhardsgrütter, Director of Investor Relations. Please go ahead, sir. Good afternoon, good morning to everyone. Welcome to the full year analyst and investor conference call. With me today is Arnd Kaldowski, our CEO, Hartwig Grevener, our CFO, and it's my pleasure to also welcome Birgit Conix, who will be our new CFO starting on July 15th. She will later introduce herself to you. With this, I would pass the word on to Arnd for the presentation. Thomas, thanks a lot. Welcome, everyone, and I hope you had a good day. I also hope you're all healthy and well, given that we're still in a COVID environment. You have seen from our publication this morning that we are in the fortunate position and have the pleasure to share what I would call a strong second half year result for our business, as well as a forward-looking positive guidance. I want to use the opportunity, particularly together with Hartwig here, for you to have us unpack the information because there's always lots of ins and outs, and I think that's important, but we want to reserve sufficient time for the questions I'm sure you have on mind. Everybody has seen the standard disclaimer here. I assume that's read, and I want to move to our page three here. I think when we look back at the last fiscal year, I think we're really proud at Sonova on how we have managed the last year and what we have achieved. I think we had to navigate an unprecedented situation, and I think that's a fair description. You may remember our first calls when we got into COVID and where we only had 40% of our prior year revenue in April, and where the first quarter was 40% lower than it was in the year before. I think having gone through that 12 months with the results, but also what we know we have done on strengthening the organization, we feel in an even stronger position than a year ago. With that, a couple of highlights, which I think you will see coming through the presentation and the voiceover. We see a sustained positive momentum at this point of time in the market if I look at the global market. There's clearly differences by geography, but the sum of the parts is a sustained positive momentum, which we're seeing, which we have properly and over proportionally participated in, and which allowed us to show a strong second half year sales, and particularly a strong earnings growth. Looking at the detail we have on the 12 largest markets, we're confident that we have continued to win share on the hearing instrument side, reflecting on the one hand side, the strong showing of our Phonak Paradise, which we launched in August, but also the strong execution of the sales and marketing teams on the field. I think the CI follows a different trajectory as a market, and unfortunately, we, given the quality issues we had 15 months ago, but it's worthwhile to note that at the end of the year in Q4, particularly the U.S. started to open up more, and with the new product launches I'll voice over in a second, we changed in a mindset from our customers towards us, where we had to explain why we had quality problems towards what they like about the new product. While we will have certainly discussions about the bottom line, and to some degree that's set by good work on the cost side, I want to leave you with the confidence that we have not allowed the cost adjustments we made to be at the cost of the important growth investments we're doing. From a strategic investment perspective, we have in the last year added even more incremental OpEx to our growth investment initiatives. One of them being R&D. You will see that we even in the COVID year have increased our R&D spend, which I think is consistent with what we said throughout the year. I think when we go through the numbers, you will see we actually did that. I think with regard to the cash distribution back to our shareholders, our board of directors is planning to suggest to the AGM to go back to a cash dividend. At the same time, we have announced with today that we're going back to a share buyback, this time for an annual targeted program up to CHF 700 million. We feel really well positioned from the market, but also from the Sonova performance coming into this new fiscal year here. When we go to the sixth blocker, unpacking the numbers a little bit. Sales, 6.6% in local currency on the growth side. A little bit better than the midpoint of our guidance. Please don't miss the point when we guided, that was before wave 2. I think it's credit to the momentum we have that we still come out a little ahead of the midpoint while we had a wave 2. I think it's also important to note that the first quarter was -40%. The first half year was -20%. To get to the 6.6% shows a lot about the resilience of the market, but also how we were positioning ourselves. Looking at the EBITDA side, clearly a strong showing with the almost 34% in LC, which allowed us to lift the full year into positive territory with almost 6%. Keep in mind the first half year was -28%. Clearly a strong rebound here. I talked about the Paradise. It continues to be a well of giving for us with regard to being able to convince more customers to join us and win competitive accounts. This has not changed over the last couple of months, we're really pleased with the momentum there. Going to the sales outlook, 24%-28%. It's always hard to make too much sense out of these large numbers because you have to compare the prior year numbers and whatever. To make it really easy, if you take the midpoint of our guidance, this would be a two-year CAGR of 8.2%. Clearly, again, showing we believe the market is coming back to where it should have been in the first place without the COVID, secondarily, us winning share over a longer period of time here. I'm sure there will be questions about how we think about the high market share position on VA, and I'm sure we get the question, but just as a heads up here, we understand that we are at a very high point. You would not expect us to plan in our numbers to stay at the all-time high for 12 months when other people come with new product. Rest assured, we have factored this into our sales outlook. From an EBITDA perspective, 34% to 42% on top of the strong performance in the prior year. I think it's a two-sided story. On the one hand, I think our continuous improvement efforts in which we improve processes to get more productive in a sustainable way, last year, the accelerated structural improvements clearly have paid off and have allowed us to have a new cost structure in a sustainable way. On the other hand, we use quite some of this ammunition to invest into growth. While I talked about that we stepped up the incremental OpEx on the strategic initiatives last year over prior year, we're going to go even a lot higher in this year. At least that's the plan, this is factored into the numbers to accelerate those growth initiatives. You know some of them, new product development, regeneration factory, feet on the street on the wholesale side, to just name some of them. We have the capacity to do that, and we have the organization to do that. A quick view here, because with the kind of confusing half-year perspectives on how we went through COVID, just wanted to give you a couple of, let's say, graphical insights here. If you look on the revenue side first, while the first half was in a strong negative territory, you can see that the second half was 6.6% coming on the back of 6.5% in the year before. Yes, there was some impact in March, but overall, you can see this was the highest revenue half year ever for Sonova, and we have good momentum here. I think the profitability speaks for itself with 28% here. Overall, the second half of the year was by far the most successful economical year for Sonova, despite us still being somewhat in COVID. It should bode well to the momentum in the organization. If you look at the EBITDA margin at the bottom, you can see the improvements over the last 4 years, which we always have talked about while we continue to invest in the business. Keep in mind, in most of the years, we had headwinds from an FX perspective. We have been able to take them on and continue to expand the margins. Quickly go to the strategy, we said that a half a year ago, our perspective has not changed. On the highest level, the strategy we have is a good strategy and serves us well. Serves us well to take the right decision throughout COVID, to keep the focus on the areas we want to invest into, to find the ways to fund that, and I think with the step towards Sennheiser, also putting a little bit of an explanation mark after leveraging M&A to accelerate growth strategically. The strategy remains unchanged because it has proven to be effective in the times before COVID, as well as during COVID in our eyes. Doesn't mean we don't revisit it every year. We always think about it. Right now, we believe this is the right strategy. One pillar of the strategy, which is very important in our industry, is leading innovation. As said, the Audéo Paradise continues to be a well of giving, continues to allow us to win customers over. We also followed our normal pathway of half a year later launching the Paradise technology for the Unitron brand and the Hansaton brand. We also have started to roll the technology into other form factors on Phonak. We're right on the plan we had for the roadmap. We followed the same playbook. We had strong receptions for Paradise. We now have two weeks of very positive feedback on the Blu platform in Unitron, and also on the Hansaton side. I think the other one which really is important, particularly obviously for our CI business, is that we were able to move a part of the technology from the Marvel, which was, until Paradise, the most successful product in hearing aids, into the CI space. You have the same chip technology on there, you have the same improvements to speech. You also have the Made for All phone now available integrated into the processor. That has a very positive recognition because of the speech improvements. It has a very positive response because of that direct connectivity even to Android phones. It also is a positive because the audiologists who are part of the decision makers on what technology to take, know Marvel as a name because it had such a strong showing. Going quickly over to the Sennheiser side. We had discussions one and a half weeks ago. I just want to reiterate, for us, this is a step into a new growth vector, which wasn't with the company before. We're clearly reached a branching out of the classical medical space for the hearing instruments here. We like the Sennheiser brand. We like their positioning. We do like their products. We think it is a growth opportunity, particularly on the true wireless with the Sennheiser products. As you can see in the graph here, particularly in the middle with the emergence of hearables, we do believe that the form factor of a hearable for a 3-4 hour hearing situation offers opportunity for people who get improvements to their hearing in noisy environments while they're not ready yet for a full hearing aid. That's the strategic rationale. Obviously, the closing is, we said in the Q4, nothing has changed. Calendar Q4, nothing has changed about that. We will know more as we go through the carve-out. It's not reflected in the guidance, I think it is a good example on how we deploy not just the OpEx, but at some time, also a part of the balance sheet in order to make our offering stronger and better. I wanted to touch briefly on the ESG side, partially because it is important to us as individuals, but also the company, but also because we get increasingly questions from more and more of you on what is Sonova doing about it. Just putting it in, take as a signal, it is important to us and we're doing a lot about it. We're well ranked in all the different indices we participate. We tend to be in the 5%, 10% slot on the upper side, on the positive side. We're also at a point where we have decided over the last couple of months that we will intensify our efforts, particularly around two elements of our Sonova InTech program, which you can see on page 11. This is on the upper right, what we do with regard to our talents, to our diversity and inclusion, because we think that ultimately is making us stronger when our talents are stronger and more diverse. The second one where we're intensifying our commitment and investments is on the lower left with regard to the ecological side. We've committed to become carbon neutral in our operations by the end of this year, and we have committed to live up to the standard of using a science-based approach to emission reduction and contribute towards the goal of the world to not get warmer than 1.5 degrees Celsius. I know some of you have departments who will be in close discussions with our teams on how we're tracking this. I wanted to make sure you understand that's the game plan and that's what we're driving as a company. A couple of highlight figures on the Sonova group results here. On the group, I said most of the numbers already, 6.6% in LC second half. Our structural optimization fully delivering to plan. I'm not going to go into a lot of detail there, but I used slightly less money than the lower end of the restructuring cost, and we're exceeding what we wanted to save on a run rate basis, which was one of the reasons why we saw a strong margin improvement in the second half. There's certainly still some COVID effects in there, and I'm sure when we unpick the OpEx and the guidance, we'll have some of those discussions. Clearly, 600 basis points, quite a strong number. From a hearing instruments perspective, slightly south of CHF 1.5 billion. We were almost 5% lower than prior year, but a good 6.1% pickup here, and as I said, Phonak Paradise and the commercial execution, important elements on that journey. Audiological care, while the first half was a little weaker, keep in mind, we're very Europe-centric there, so we don't benefit from Asia that much from our AC business. A nice return to 6.9% in LC second half. Continued focus and investment into the lead generation elements from the lead generation factory here in Europe, the one we have in the U.S., but also what we do with regard to online channels for accessories, as well as our China activity there. On the Cochlear side, clearly a different picture for the year, partially the market, which is starting to come back. U.S. is ahead of Europe, also with a few corrective actions. Clearly in the first half year, we were losing market share. With the new products and the work we've done to regain trust on the customer side in Q4, we're clearly seeing a change to the sentiment and a significantly stronger momentum. I think we're well set up to regain a big part of the lost ground here in the coming year. On the Sonova Group level results for the full year, you have spotted all of them already, but you see the gross margin was slightly up despite the lower volume and the headwinds on freight cost, which is a global issue right now. Below that, as I go into the sector, is quite some good work with regard to labor productivity. OpEx clearly very tight, which translates into the high EBITDA of the 5.6. Coming to the adjustments, and on page 14, we wanted to make it easy for you that you have a chance to unpick them. Probably the first positive information, while in 2020 we had negative 66, this year we have positive 60. If you look at our adjusted number where we try our best to correct for one-time items, we had more positive one-time items. At least we're proving the point that we do both the positives and the negatives, ultimately translating to very high reported EBITDA. The two biggest items on the sheet were the CI patent claim, where we did win a long-term outstanding item, which was worth at the end around CHF 125 million in positive, and the restructuring at a negative CHF 40 million for the year. 15, you see the breakdown on the sales components, probably most important here to see the 7% on the organic side, but then also the 4% we had out FX. It was worse somewhere in the January timeframe. It has improved slightly. We currently have a little bit of a more positive outlook for the full year. If you go to 16, the geographical split of the growth, if you go to the far right, you see for the full year, the only region which did grow positively was Asia-Pacific. Probably more encouraging and more relevant for you as new information, when we look at the second half year, all regions were in positive territory, somewhere mid-single digit, and then Asia-Pacific in the 20%. A couple of highlights here, looking at the HI business, especially in Europe, it is really kind of depending on the country and the infection rates and their lockdown scenario. We had a solid recovery with positive growth in France, Germany, Nordics, and Switzerland for the full year on HI. We had good momentum in AC in the major markets, although the U.K. and Germany were moving slower. In particular, the U.K., despite the vaccination rate, it's a little bit of an odd scenario. Still a lot of hold back because the government was holding lockdowns pretty long in place. If you look at the U.S., HI is obviously a big business for us there. Clearly, when we look into the different channels, the way we integrate the data is that we did win share in all channels, and we did see a faster recovery on the independent side. I think Paradise really at play in addition to the commercial execution efforts we have there. If you look to the other, again, focusing more on the HI being as the biggest part of the other bucket, strong rebound in Asia-Pacific, China, Korea, New Zealand, muted developments in the Americas in which we have the Brazils, the Mexicos, and also the Canadas. I don't think a major surprise here in the stack ranking by geographies, but hopefully helpful for you. On the EBITDA components, a big organic lift out of the tightness on the structural side. You see a big number on the adjustments in LC. In this case, positive, I did tell you on page 14 is the explanation to it, and then quite a negative on the FX side, the CHF 60 million negative. It was even more pronounced in January. We have a slightly positive alignment. Page 18 unpicks the P&L for the second half. Looking at the middle here, a good performance on the gross profit, where we grew gross profit faster than the top line. You can see the productivity coming our way despite of the freight cost and a couple of extras we had to do for COVID. OpEx still year-over-year shrinking. On the EBITDA side, you see the 34%, you see a 28% on the EBITDA margin side. I said it before, I think there are some elements still in there where lower travel does help. Not a lot of extra government subsidies, about CHF 4 million or so. That's probably not a big item here, but clearly we will need to gain productivity in order to stay or increase that level over this jump of points here. Moving to the hearing instruments. As an overall, because you can see the profitability here at 6.5% second half, I will focus on the second half. Again, the 600 basis points. This was pretty much carried by the two businesses, Audiological Care and wholesale. The return to growth is probably the main items to watch out here. want to spend a little bit more time on the hearing instruments business. On page 21, that's what we call wholesale. Don't be confused. The segment is AC and wholesale. This is the page only for the wholesale business. Again, focusing on the second half, 6.2% growth, 6.1% organic. Here, many positives. I talked about the Phonak Audéo Paradise, which is important in the wholesale business. Talked about the commercial execution continued focus. We did have a positive ASP at the beginning of the year, particularly driven by mix of higher priced geos, also more premium product than average. We're seeing a little bit of a headwind in the Q4 in it, partially because of the French reimbursement change, which is a big market for us. It's the number 2 market after the U.S. right now. Also a rebalancing of the mixes by geography and product line. Clearly a new high on the VA, which ultimately we had the high point at 57%. Then we renewed our private label contract with a large U.S. hearing aid retailer, which was important for us because it gives us this very important base business we have there with a nice growth they produce normally as a channel. I talked about the new products in Unitron and Hansaton. Audiological care, the 6.9% I commented on, most of that is organic. The little acquisition, we did actually not do acquisitions in the first half of the year. You can probably understand that given that we were in low revenues and we were first trying to figure out how we manage the balance sheet. We have restarted our activities there in the second half. The second half was more of a normal second half for us, probably even a little faster, because we want to increase our activities there. What we also did is when we came into June, July and the first quarter was over, we did see the demand coming back. We put the full foot on the gas with regard to the lead generation from a marketing perspective. We allowed ourselves, in some cases, to say, even if the market's not fully there, let's just do the normal marketing spend to get the leads because we have the infrastructure, so incremental revenue is relevant for us. That's what I wanted to cover here. On the Cochlear Implant segment side, this chart needs a little explanation on the numbers. While you see an 8.2% in the second half, the recovery is slower, the market recovery is slower. One thing to note, some may remember in the year before, as a consequence of the quality changes, we made an adjustment to the revenue, which all was sitting on the AB side. In reality, what is an 8.2 in real terms, because we made this adjustment, we were not yet in a positive territory. We're still at a low revenue level for this kind of business with CHF 100 million. Clearly February, March were starting to get strong months. April was also a strong month. I think the recovery simply comes six months later, but we're in the middle of getting it. The benefit is we have spent significant time with the customers to make them more comfortable with our quality. 95% plus of the customers who bought implants from us are buying implants from us right now. I think the new processes really changed the conversation because of the strong benefits and the excitement always when you have new products is the best answer to some concerns in the marketplace is coming with new products. On page 25, you see the implant systems and the upgrades and accessories. In general, the upgrades and accessories fared a little better in the first half year. In the second half, it looks not as good, keep in mind the quality corrections were all on the system side. Again, I think in the second half, we saw better upgrades and accessories as you would expect when you have an install base. With that, I want to hand it over to Hartwig Grevener for the financial information before I come back on the outlook slide. Yes. Thank you very much, Arnd. Hello, everybody. It's my pleasure to do this the last time, but it was a great pleasure to also contribute to the broadcasting of this very, very nice result. On page 24, which also summarized the cornerstones of the financial results, you see that besides the operating financial metrics, also the EPS was up even on adjusted basis quite nicely by 15.5% in local currency, reflecting the earnings growth, but also some benefits on the tax side. We had a strong operating free cash flow of CHF 602 million, so very close to the EBITDA. This was down 5.7% in the condition that we entered the year on a very low revenue level and left the year on a quite significantly higher revenue level, which determines obviously a higher level of receivables. Else we are very satisfied with how the cash flow performance has turned out. We have a dividend proposal out there, as you have heard, back to, let's say, the normal corridor of just over 40% of payout ratio at CHF 3.20. We are restarting the share buyback at this point, announced at a volume of up to CHF 700 million for this fiscal year. As you know, our leverage is getting close to zero, and giving us a lot of financial flexibility. If you move on, we have mostly talked about those numbers on page 28. Notably also, the return on capital employed has improved by 300 basis points, including around 180 from the else normalized cochlear implant damage payments received from our competitor. In general, this is a very satisfactory situation overall. I want to draw your attention again that in the past year, the currency development took away notable portions of our growth. As Hans said, you can see here again that the adjustments kind of even out year-over-year. Looking a little closer to the operating expenditure on page 29. After we have looked at the P&L as a whole, we can see here that really that we are investing strongly in R&D, this is a combination of traditional increase of resources and agreement with contractors, it's also an effect of earn-out expenses from a technology acquisition that is entirely reflected in terms of those expenses in R&D. Sales and marketing and G&A, both down by double-digit. Also looking at the G&A side, a stronger reduction than in sales and marketing, reflecting that we have been working on the cost structure, and against the ongoing investment in IT, in particular in our IT platform and the audiological care business that we have also mentioned in prior years, where we are, I would say, in the third year of rollout activity in the interest of best possible multi-channel marketing and integrated value flow within the company. We've talked about the adjustments before. I guess that's all fine here. Moving on to page 30. To just walk you through the bridge from adjusted EBITDA to net profit. We've talked about the adjustments. The acquisition-related amortizations are stable in line with prior year. The financial result is a little more negative than in prior years as a combination of what we call it here, higher debt, but it's a combination really of interest paid for the debt that we have taken, but also interest paid for deposits that we are placing. Obviously, the returning cash to shareholders will over time help us with the latter. Looking at the tax side, we have an underlying tax rate this year of around 12.5%. I guess that's broadly in line with what we have indicated, it's probably a little lower. We have non-recurring benefits of around CHF 60 million here, of which we have normalized CHF 28 because they are a lumpy item normalized in the prior schedules and relates one more time to the Swiss tax reform. While for most of the analysts this is kind of an IFRS technical item, let me just note that ultimately those items will be cash safe for the company. I would say ultimately, we have fared well through the Swiss tax reform, getting to a new base here that is relatively well sustained. Getting us to a 25% net profit margin, as you can see here. If we look at the cash flow, we have already touched on that. We have a strong pickup of profit before tax of CHF 98 million. That's obviously reported including the CHF 60 million on an EBITDA level adjustment benefit, D&A, and income taxes. Then you see the working capital change, of which more than CHF 100 million relate to the buildup of receivables through this significant swing between what was March 2020 and what is now March 2021. The rest is inventory, mostly as the swing fuels up to here to CHF 280 million. You see a very low CapEx amount for this past year, as we have obviously been very careful to not overextend in times of uncertainty. Some balance sheet information here. We are seeing here the DSO is more or less stagnant in the way that we measure it here, but on a much higher level. DIO has increased as a reflection that we have allowed on a component and finished good level to have a little more reserve given uncertainties both in the manufacturers of components and also in the supply chains. We had no interruptions at any time within the year and no significant backlogs either. Capital employed affected by the receivables. We have talked about ROCE. Net debt now very much down to around CHF 80 million. By the time we speak now, we can assume it's zero. A very strong balance sheet to start from as we're going into the phase of continuing again, the returning cash to shareholder. That concludes my report so far. Let's answer the outlook. On the outlook slide, you may have seen that when you zoomed forward, we want to give you a best read on the current market conditions where we have published data on a monthly basis. The three countries, and this is wholesale data, but ultimately also reflecting the retail world, the other product need to go somewhere or come to the consumer. These are the three countries where we get monthly data. As I said, there's 12 which report, but nine of them are quarterly, and I understand fully that you are as interested as we are in what the latest trend lines are. What we're showing here, particularly in the blue box, is what's the two-year CAGR of the unit volume in the markets. Right? The U.S., you can see, was pretty flattish for many months since they came out of the first wave, but still below the prior two years ago. We can see that in March and April, we were coming up to a 9% two-year CAGR unit volume, which goes nicely hand in hand with the vaccination rate, and we look as a leading indicator of the population above 65. The moment this got to 30%, 40%, 50%, 60% by now in the U.S., we clearly see a significant impact. You could argue there's pent-up demand in there, but on the other hand, the 9% CAGR is also not unheard of in our industry. Looking on Canada, you see a similar, it's a little bit more bumpy, the curve. I think the government had different phases in how they went in and doing lockdowns, but clearly March and April was in the 7% two-year CAGR. As a contrary view, you see Germany, which was earlier already above the 100% with a slight growth. Right now they're still struggling to get there. The people follow the German lockdown scenarios and all that. It is still confusing for the consumer, to put it mildly. We still see some holding back of the consumers coming back to the stores. Now, if I would put the 12 countries out, in the vast majority of the countries, we see positive territory. Therefore, we see the market in a good recovery on a global level. Hence, we also feel that with increasing vaccination, we're looking towards a continued steady recovery of the market on a somewhat expedited curve. I think you all follow the vaccination rates. For us, that has proven to be the most predictive in the last three months on how countries develop differently. One exception being U.K., because they have a high vaccination rate, but still had for a long time lockdowns in Ireland. Right. It's those two we look at. Clearly, the market remains dynamic, but we've seen strong rebound in many of the markets. We think with the vaccination rates going up, we will be in a more steady environment than what we've seen in the waves two and three. That's fundamentally basis to our guidance here. Going to the outlook side, I showed the numbers before. Keep in mind the 2024 to 2028 is 8.2% two-year CAGR, which is a composition of us expecting the market to get back to normal, including making up for what felt like lost ground last year. We're pretty confident around that. If some markets start a little slower, other ones have some pent-up demand. That's how we think about it. The 8.2% should also represent our expectation that we continue to win market share, given the momentum we have on product and execution. On the bottom line, I think the way to think goes through the 34%-42%. Yes, some costs will normalize a little bit, particularly on the freight side, on the other hand, there will be quite some fall through from the volume. There's still an annualization benefit out of the structural improvements which we started to do in Q2. We're probably at their peak in Q3. We have baked in significant increases in our growth investments because the projects are progressing well, and we have the financial flexibility and muscle here. Last comment on the currency. We, at current rates, would see a +2% in CHF over the LSE and a +4% on the EBITDA. We all know it's quite volatile, but at least starting on a positive is a better start than starting on the negatives as we did last year. Quick recap on the TSR here. Not a fundamental change, but I said it earlier, I think acquisitions, if they are the right strategic things to do, are priority of ours. We have increased the team on the ground to do more bolt-on acquisitions in the markets where we are in retail. We are expecting CHF 70 million-CHF 100 million in bolt-ons. So far, we were targeting CHF 50 million-CHF 70 million strategic and technology acquisitions, Sennheiser being one example. Could be other things. Going back to the dividend, we are still of the mind of keeping a healthy balance sheet so that we have flexibility for positives like M&A or negatives. I think the CHF 700 million up to as a share buyback also obviously is a fair representation of us having a strong cash provision, which we want to at least work off over time here. With that, I want to give Birgit two minutes to say a quick word of hello before we move to Q&A. Hi, everyone, and thank you. I very much look forward to start working at Sonova and to be part of Sonova's continued growth strategy. I am a Belgian, and I worked a bit over half of my finance career in healthcare, in pharmaceuticals, and in medical devices, and most of the rest in consumer-related industries. I'm currently in my six weeks onboarding program, and I have two weeks behind me. My goal is to onboard as quickly as possible. I also look forward to meeting you all very soon when travel permits. Thanks. Thank you, Birgit, and welcome on board. With that, we want to open it up for questions from the audience here. We will now begin the question and answer session. Anyone who wishes to ask a question or make a comment may press star and one on the touchtone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only hands if they're asking a question. Anyone with a question may press star and one at this time. The first question comes from Patrick Wood from Bank of America. Please go ahead, sir. Perfect. Thank you very much. I have two questions, please. The first one, you guys seem to have done a really good job on the productivity savings and the margin structure of the group. I'm just curious, 2022 implicitly, the guidance will be a very good year for margins. You've kept your midterm guidance with EBITDA growing faster than the top line. Is it the right interpretation from us that you think the margins, even after 2022, should be flat and going up? Is there any kind of a normalization back down as volumes sort of normalize a little bit? I guess some help around where you see the ceiling for margins of this business would be great. That's the first question. Second one, just very quickly on the Sennheiser business, how are you guys thinking about investing in that platform? Appreciated comments around hearables. How are you thinking about where you want to put your OpEx and really what you want to do on the product development side? Thanks. Patrick, thanks for the question here. With regard to the margin outlook, I think we're in an accelerated margin expansion, which is unique, and you heard us say this over the last two and a half to three years, that we had structural opportunity, which we wanted to go after. I think afterwards is probably when we're getting out of 2022 here, the fiscal year 2021/2022, we go more into a normal in which you will see a normal profile of investing into growth and getting some margin expansion out of simply the fall through, then we'll decide where the fall through goes to investing or bottom line. I think we see a continued opportunity from continuous improvement. It's a well of giving, at least when I look at companies like Toyota and others. The structural side, I think, will be behind us. On the Sennheiser side, I think we believe that there's an opportunity to help Sennheiser to continue and to invest into their product lines and into their channels while we teach them a little bit on what we have learned on how to improve the productivity. There's also a couple of areas where we can benefit out of common sourcing, think about logistics costs and stuff like that. I think you will see us making more investment than they would have because they would have not thought by themselves about the hearables with an amplification, let's say, capability. We were on that journey by ourselves. We said that one and a half weeks ago that we had some organic developments going on, and I think we will continue the R&D effort there because that's going to be a new product line or product category, and that's organic growth investments. I think overall, over time, you'll see us improve the profitability there. The Sennheiser standalone will improve because we know how to do that. I think there's more investment to come on that amplified hearable. Very clear. Thanks for taking my questions, guys. You're welcome. The next question comes from Daniel Buchta from ZKB. Please go ahead. Yes, thank you very much. Two questions also from my side. The first one, maybe coming back to the margins into the year 2021, 2022. Obviously very strong guidance, but could you say a little bit more about the drivers behind? Obviously, it's volume recovery, and you have your efficiency programs, but how is the cost base now? Is there still a lower amount of travel expenses, marketing expenses? Things that should then be back to normal in the second half of your reporting year or later than, I would say, in the year 2022 or 2023. That's why margins maybe still might be a little bit inflated due to the lower cost base, but the strong recovery and top-line momentum. The second question on the general market trends, and you elaborated a bit on that already with the one slide. Based on your guidance, what would you expect how the market is by the end of this year? Is it above the 2019 levels already? How much pent-up demand do you still expect or do you see on the ground? How are the trends here? Thank you very much. Yeah. Hi, Daniel. Hartwig Grevener here. On the margin question, looking at the new fiscal year as a whole, there is obviously a compound of better volume, no subsidies that we had prior year. The structural improvements, the annualization of the structural improvements, I should say, potentially smaller additional structural improvements. There is the travel and entertainment piece there. Last but not least, there is the investment into growth. As Arnd Kaldowski said, we are not taking all the structural improvement and continuous improvements to the bottom line Swiss franc for Swiss franc, but we are increasingly investing, even further increasingly investing into growth. The compound of all that is what we are guiding here. In regards to travel, entertainment dynamics, when you look at the pre-COVID run rate for a year, it would be at a magnitude of just over CHF 50 million. You can say during the COVID year, we saved about two-thirds of that, and we have assumed that in the new year, we will still save a third of that. Whether this is a recurring saving, I believe some of that it is because we have now also understood to interact with our consumers and customers increasingly on a digital way rather than face-to-face. Whether this is coming back, because ultimately you want to travel when travel is possible, but there will be a mix of those, but in the midterm, it's no longer a strong, let's say, non-recurring item, I would say. It's important when you look at the cost dynamics that obviously there is a much stronger year-over-year margin improvement in the first half than the second half. You have not asked that question, I'm just referencing this for completeness sake. Arnd Kaldowski, do you want to go to the market? Daniel. Thanks for the question. On the general market trend, we expect the second half of the year of our fiscal year to be at a market clearly above the same period in 2019. We expect that we will also have one share relative to that two years ago, continuing our progress there, I think the market will be clearly higher than 2019. I think we will work through the markets which need to recover. I think there will be some pent-up demand. We do not believe that everything which was not purchased last year will be purchased this year. I think some people will come and some will not, and that will help us to smoothen the curve for the year. The fundamentals are there. We have the same incidence rate. People are getting older. People have more money. Even in the financial crisis, we're seeing it's not that severe to the, let's say, more senior population because they get their retirement money, share prices stayed high. I think we're going to go back to normal the moment the COVID is over and you really have to start from how many people do need a hearing aid and don't have one yet. Thank you so much. That's very helpful. The next question comes from Veronika Dubajova from Goldman Sachs. Please go ahead. Oh, hey, guys. I hope you can hear me okay. Good afternoon. Thanks for taking my question. I have three, please, if that's okay. My first one is just on gross margin. I would love to understand, obviously, very impressive performance in the second half of the year. Hartwig, if you can talk to sort of some of the structural changes that you've made to your manufacturing footprint and to what extent those carry forward, even assuming a more normalized geographic and product mix, and how kind of we should be thinking about gross margin both in fiscal year 2022 when maybe things are not fully to normal and then more long term on a sustainable basis, that would be great. That's my first question. My second question is just on your kind of increased M&A ambition. Obviously, Sennheiser, I suspect sits outside of the CHF 70 million-CHF 100 million. Would just love to understand what are the opportunities that you're seeing in the market. I have a follow-up after that, if that's okay, once we tackle those two. Veronika, good to hear you. Thanks for the question. On the gross margin side, yes, there is always this interplay between ASP and volume effect and structural and continuous improvement. Working on the structural improvement side, we have been quite satisfied with our successes in a mix of roof consolidation, offshoring to the best part of our network, which generally is Vietnam, and process improvements, sourcing improvements, freight cost improvements. The year that we have seen so far and the funnel also going forward On both structural and continuous improvement gives us enough fundament to also buffer off a mix-related ASP, or let's say the absence of mix-related ASP benefits and even also ASP pressures that could return to the market in the next fiscal year. It is really that interplay, but we believe we have done our homework well there. Veronika, I will take the second one. Hi. On the 70 to 100, I think, about them as bolt-ons in markets where we have retail. Sometimes they come at one of these or two these or three these. Sometimes they may come with 20 point of sales or 30. I think the "magic" to why do we take up the number, we have in the last 12 months made progress in building more capability in the individual countries. You can imagine these are the Germanys, the Frances, the Canadas of this world, the Perfels of this world, where we have significant footprint and opportunity. We have built up those people so that on a local level, they find the opportunity, cultivate the opportunity and bring more home. That's what we have in mind for the 70 and 100. It has nothing to do with Sennheiser. If there would be a large market where we're not active with retail, if we make an entry investment, most likely that would come at a larger number of POS that are also outside. This is really the bolt-on somewhere in the 10 to 40 POS where we are already active. Okay. That's very helpful. Arnd, what's the competition for these assets like? Because obviously you're becoming more active. Amplifon is fairly active. Are you seeing sort of a significant degree of competition around that? I think it depends on the market first. I think there are at least three of the players who are reasonable size. If you take the Amplifon, the Demant, and us. Everybody has a different footprint. I think everybody has the interest, where they have a meaningful footprint to increase their share. Yes, it could be depending on the country that we're competing with one other player. Comes the question, who was earlier close to the asset? Who has a better relationship? We do have a, let's say, systematic advantage relative to somebody who doesn't have wholesale because we happen to know the people since a long time, and often that helps. In some cases, you are by yourself because you had a good relationship and you were cultivating. I would not say we're seeing a significant increase in prices or let's say heat. I think it's really more us being on top of our game and finding the opportunities where we have a chance. Understood. Thank you guys so much. Welcome. The next question comes from Oliver Metzger from Commerzbank. Please go ahead. Thanks for taking my questions. I have three. The first one is on the reimbursement change in France. Over the years, your French business has gained in scale. Could you specify your positive contribution on organic growth on wholesale and retail? Also, how long do you expect this positive contribution? The second question is on your guidance. What's your view between the 3 segments, so wholesale, retail, and CI, with regards to growth dynamics for the next year, just as a ranking? Finally, last week, the proposal submitting hearing aid was published. What are your initial thoughts on that, also with regard to pricing? On France. Oliver, happy to hear on I guess the question on France was about the reimbursement dynamics that we have there. Yeah, also the impact on your business. Yeah. France is the second-largest market by now. In wholesale. In wholesale. In wholesale. It is a smaller market for us on the retail side. We have a net positive impact from the reimbursement change, both on profitability as a whole, so profits and top line. The relative margin is more neutral. It's a volume benefit there. There is an ASP degradation from that. Obviously overall, we value that in dynamic positive. It will be temporary in nature to a certain extent. There will be also a remaining benefit that ultimately this market will have a higher penetration as a result from the change. Oliver, on the guidance and breaking it down, I think for the current fiscal year, if you're in the 24%-28%, smaller differences between markets and fundamentals are not that relevant. I would say probably all three moving directionally the same. I think you could make the argument that on CI there's more potential given that the market was lower. On the other hand, it's starting a little later with its rebound. It's not fully in rebound yet. I would say for this year it's kind of the same go forward. I think we think about wholesale and retail, it's the same chance to win market share. On the retail side, the bolt-ons come on top. If we go to 70 to 100, it should be a little bit more than the two to three we have historically said. I think on the CI, the market is fundamentally growing faster. I would use what we have shared in the midterm guidance as a direction longer term. I think for this year, I would expect directionally the same and then CI will depend on when the European market is opening up. On the Bose side, I think we have recognized with interest that they have now shared a product. I think we all know that one and a half years ago, they already kind of shared they are going to have something. Let's appreciate they have one now. I think it looks pretty much like a hearing aid. It is interesting to recognize that it is not connectable and it is not rechargeable. I think we will see how that sits with the consumers, but we assume that OTC is younger generation. I think connectivity and rechargeability is relevant in that segment, probably more so than in the average. I think you've seen the price point at CHF 854 a pair, at least what they are marketing right now. Keep in mind, that is without service. Probably positive on the price point they are shooting for, not going very low here. On the product side, I think it does not have some of the functionality you would expect in any hearing aid at this point of time. Okay. Potentially one follow-up. Do you think that price point is too high, that such an approach might be successful in your view? Interestingly, I personally believe, that's a personal opinion, and I'm sure there's lots of other opinions out there. I'm not so sure if this is all about price or if it is about in which channel you find people and how you motivate them to think about something. I think you guys are following Eargo as much as we, and they are at the very high price relative to anything which was discussed for OTC. I think clearly in minimum there is not a transparent price point out in the market. I also believe that it's more a question of a convincing product offering for the need and the channel you're using over a pure price point discussion. I think we will learn more as other people show their cards after Bose, and we will see where the prices will sit at the end. It's really hard to say CHF 850 is high or low. I don't know. Okay, great. Thanks for your thoughts. Thank you. The next question comes from David Adlington from JPMorgan. Please go ahead. Hey, guys. Thanks for taking the question. Just want to revisit the margin, some of which you've answered already, but maybe just to push a bit further. The margin you pointed towards this year is, what, 400, 450 basis points higher than peak margins. I just wondered if you could sort of split that out between how much the pent-up demand is driving sort of extra operating leverage, how much is from the continued, i.e., structural OpEx savings, and then how much is due to lower COVID costs? I know you sort of covered off some of that third point, but if you just split between those three buckets would, I think, be useful. I just thought I'd ask you one. You called out in the release a legal provision offsetting some of the bad debt write-backs. I just wonder what that legal provision related to. Thank you. On the margin side, just trying to start off with a stack ranking side. If you look at a growth of 24%-28%, and a CAGR of 8.2%, you would expect that the volume leverage is a significant contributor because you don't need more factories. From a continuous improvement perspective, we get more products out of a factory every year, and we get more product out of the operator every year. That's why we call it continuous improvement. I think that's a significant contributor. I think from the structural improvements, we announced them at the beginning of Q2. We said we were two-thirds done by end of Q2. I think you can almost guesstimate from there on how much benefit there's still to come. It will show up in the P&L year-over-year in the first half-year, but it will be significant positive. That's I think the big items. If you look at where we keep costs down, some of those buckets are things where we learned that we don't need the cost. If you go through a whole set of indirect costs and you're having to call everybody to being tighter, you don't allow everything to grow back. I think clearly there's a travel element in there. Put that at a range of an increase of CHF 20 million or so. Not all of the travel will come back because as we have home office discussions, we also have more virtual discussions. It's probably the third most important is a negative in the other direction, but it isn't that dramatic. I think the bigger one is volume and then still benefits out of structural improvements. On the release of bad debt provision and legal provision, the comment, you remember that last year we. We built about CHF 20 million-CHF 21 million of extra receivables provisions in lieu of the COVID impact on the market. We have released to the mid-teens level from that. This is however P&L wise or G&A cost wise, largely offset by higher legal provisions that we have. For certain reasons, it's not out of normal for the company of our size, but it wasn't there before, and it will not be there next year to the best of our understanding. That's why we're making this connection between those two same magnitude size items. Sorry, just to follow up. That legal provisions, is that related to anything in particular? Patent case, something like that? No, nothing. Not lumpy. It's a handful of different cases that have accumulated. Great. Thank you very much, guys. The next question comes from Markus Gola from Stifel. Please go ahead. Yes, thanks for taking my questions. The first one is on your midterm guidance. During the last CMD, you alluded to a potential revision of these targets once the COVID-19 situation normalizes, and today you have confirmed this guidance, where at least the low end of the sales growth corridor is structurally not very ambitious. I understand on the other hand, you recently did a meaningful acquisition, and you have a new CFO started at your firm. Is it fair to assume that you simply have postponed this revision to your next CMD? Have you indeed abandoned the idea to have a fresh look on these targets? My second question is on China. Could you provide us with an update on your web-based initiative there with your partners, as well as your experience with Shift, the self-fitting hearing aid? Lastly is a question on reimbursements. This year, we should also see some impact from the anniversary of the reimbursement change in Germany. Have you baked something into your guidance from this tailwind, and would you expect that Germany could surpass France in wholesale this year from this tailwind effect? Thank you. Markus, thanks for the questions. On the guidance side, honestly speaking, look at it more as a postponement of having to revisit. I think we're really still in an environment where wrapping our head around the full year is quite a handful, and so we wanted to make sure we've done a real good job on the full year. I think we're going to see still some swinging up and down on what is pent up and not. It will leave us with a little time here until we get back on the midterm guidance. I think in general, we look at the market as attractive and the fundamentals well in place. I think on the China side, with regard to the activity we have there from a lead generation perspective, we are very pleased with the sheer number of followers and leads we are generating through our activities on WeChat particularly, and then to some degree on the Alibaba side. I think we see a positive benefit in the wholesale partners who participate in that lead generation when a consumer is interested to find a retail store. I think on the self-fitting side, and that is to some degree a Shift question, which is a product we have launched there. We are not yet at a place where we see a lot of pickup for that. There are customers who are buying it, but nowhere in an order of magnitude where this would be material and relevant. I think we have to continue to optimize how we guide them through the selection process, and there's lots to be learned when you build this up. Secondarily, I think we have to learn how to optimize the product offering, and I would still say the jury is still out for self-fitting devices. More work to be done. Happy with the front-end side of the lead generation there. I think on the back end towards the self-fitting, not so certain yet. On the Germany side, with regard to the anniversary of the reimbursement change, we have not factored this in. I think it could be a positive. On the other hand, you heard us say that we do have some still slower demand side in Germany. I would say it's not going to be a material changer to the 24%-28% on a field level. It actually had its peak impact last year, so it is already mostly behind us. Okay. Even if it would be still in the pent-up demand, I don't think it's going to be a big needle mover for our total business. Okay, great. Thank you. You're welcome. The next question comes from Christoph Gretler from Credit Suisse. Please go ahead. Yes. Thank you, operator. Hi, I'm Tarek, and welcome, Birgit, to the team here. I actually have maybe two questions left. The first is, maybe just out of curiosity, could you share a bit, some details about the dynamics between Q3 and Q4? I know that's assumed that Q3 was, I mean, your fiscal year Q3 was more like a very low single digit growth, and then a rather higher mid-single digit in Q4. Is this the right dynamic to think of, or? Hi, Christoph. Good to hear you here. I'm going back to the pages, which may be helpful in the discussion here. I think what we've seen was a still good momentum in October and November. We felt that the January and February was slower in most of the markets, and I think we've seen some markets getting even more aggressive on lockdowns, people probably a little bit more depressed on the consumer side. I think it's fair to say that what you see here in the U.S. from the chart, page 34, and Canada, is more kind of the general dynamic we're seeing that March was particularly strong, April was good. I think it really goes with the vaccination. Without the vaccination curves, I think we would have stayed more in a difficult environment. Okay. Good stuff there. Then, just to come back on this gross margin discussion. Obviously, a very strong performance in the second half. Is there any hint you can give us with respect to how that would have looked with a normal kind of channel mix? Assuming VA and Costco and the like would be more at normalized level. I think you mentioned that ASP started to soften lately. Maybe just to give us a bit of an indication of how significant that would be as a pressure on your gross margin. In other words, if I look at your guided margin expansion for FY 2022, what% or what part of that is gross margin related at all? Is it all leverage on OpEx? Hi, Christoph. Let me take that. The next year's or in the continuing margin, let's say, homework that we are doing or opportunity exploitation that we're doing is, I would say, two-third OpEx and one-third gross profit. As I said, there is continued opportunities there. If you look at the 74.4% that we turned in for the second half, it could be like 100 basis points of ASP pressure in there from the mix. I guess that would be a reasonable magnitude. It's not an exact science there, as there is many factors amalgamating. That's kind of the magnitude that we are thinking of. More the question is that in general in our markets over the years, we have seen times of, let's say, a rate of 100 to 200 basis points of ASP pressure in general, that were then caught up with and offset and even turned to the negative by new innovation that turned in, like Made for iPhone, et cetera. We wouldn't say that there is a general pressure, but there could be some cyclical impact for us for the coming year, given that one competitor has out a newer product than us, and again, compounding with those general effects. Okay, I got that. Maybe last question, if I have you. You mentioned your tax rate is actually running at the low end of your indication, at least in the past. Is there any reason why we should take down that rate in our model for the midterm, or just stick to this increase on a midterm basis? Yeah, Chris, again, thanks for at least one interested into this. Big question. We want to be a bit careful here. I'm signaling that the outturn, how we managed the Swiss tax reform that would generally make us expect that the long-term average of around 12%-13% tax rate would go up to more the mid-teens, and at the moment, we're looking still at the 12%-13%. We just need to be aware that in the longer term, there's also other tax liberalization, I should say tax internationalization developments from the OECD. You don't have much more visibility than the next, let's say, four or five years. For this kind of horizon, we might be a little favorable over the 15% that would be the mid-teens. Okay. Got that. Thanks a lot. The next question comes from Tom Jones from Berenberg. Please go ahead. Good afternoon. Thank you for taking my questions. I just have to add at the start that it's only peculiarly Swiss that tax reform could result in no change in the tax rate whatsoever, but I guess that's a unique characteristic of being in Switzerland. I find that somewhat interesting. We've had a lot of questions about the margin and short-term costs, but I wanted to ask a much bigger, sort of longer-term structural question really regarding margins. If I look at the margins of your company over the last 10 years, and this is true for much of the hearing aid industry, they were remarkably steady. They were sort of stuck in a 19%-22% corridor. That was largely because companies like yours and everybody else's pretty much invested everything they could in maintaining the top-line growth. It was costly to deliver top-line growth. You had to invest to do it, and that naturally limited margins. It seems from your commentary and some of your competitors, or at least one or two of them, that that relationship between having to put all you can into costs and to keep the top line growing has decoupled somewhat because certainly in your most recent second half, costs went backwards and revenues went up. Your guidance for 2021, 2022 suggests much stronger revenue growth than cost growth. My question is, why do you think that sort of relationship between revenue growth and cost growth has decoupled? If you don't think it's going to recouple, why not? What's changed? Why won't we go back to a situation where you basically have to just spend all your incremental operating leverage to defend your top line? What's different and what's changed, do you think? I think I can just comment on how we think about investments into growth. We're identifying the areas where it's clear to us that more investment translates into revenue. We will not hold back any more salespeople if we can't reach all competitive accounts. We are increasing our R&D right now every year by more than 10%, because we think that we need new technologies in addition to hearing performance improvement in applications as well as on the sensor technology side, and other things will come. We go the approach where we say what's needed to drive the growth, and then we have significant activity here which says how do we get productivity out of the more transactional things we do and how do we improve our cost structure? We do not feel that we're under pressure to over-invest into growth where it's unclear to us on how we get there. Yeah. In that regard, I wouldn't follow the macroeconomic argument to some degree between the lines here. The competition will force you to invest then. I think we want to be very clear on where do we get the growth, and at this point in time, we do get the growth out of the investments we're doing. I guess my point is you're expecting to grow your revenues above market. Clearly, that means you're taking share from somebody else, which means your competitors have got two choices, really. Either roll over and take lower revenues or invest more money to recapture their revenue. What I'm trying to understand is why. I can understand why for a short period of time, revenues might grow faster than costs. Given how competitive the hearing aid industry is and with new entrants coming in, I'm just struggling to understand why the amount of cost you have to put into your business to achieve the same level of revenue growth won't go back up on a medium-term view. I'm just really trying to work out whether this step up in margins is a permanent thing or something that's going to get competed away with time. I believe it's more on the permanent side. I think if I look at our output in innovation and touchpoints with the customers, we're able to sustain good growth year-over-year. We do have fundamental structural opportunities in the company which we have started to work on, and we have opportunities to improve the output of our operators every day, every week, every month, every year. We believe we can run this for a long period of time. Keep in mind, we do have a scale advantage. As long as we leverage our platform tightly and well, our scale advantage will help to have higher profitability level than other people in the marketplace. Perfect. Interesting thoughts. Just one quick question on the current trading performance. We've heard a lot about potential pent-up demand coming back through the P&L. A lot of your customers have not had many alternative spending options in the last three to six months. They're largely cooped up, but maybe still have the same level of disposable income. On top of that, most hearing aid companies have been spending quite aggressively on lead generation. To what extent do you think there might have been some revenue pull forward in the last perhaps three to six months, both for yourself and the industry? I don't think that there's a lot of pull forward here. I think we were all focused on making sure that the existing customers who come up after five years for renewal are well attended to. If you look at the unit volumes, that was pretty steady over the 12 months here. Probably the first two months were a little weaker, everybody got back to we can cycle them through every five years. I think on the lead generation side for new customers, we've seen it a little bit more difficult. We needed to spend a little bit more, ultimately we got to good volumes. For me, that's not so much of a pull forward. We always try to pull forward, I think that's always focus of ours. I think on the new customers, it is the people who are ready to engage with the category. We need to reach them. I don't see a lot of pull forward in any shape or form. Got you. That's very clear. I'll get back in the queue so I get in touch with someone. The next question comes from Daniel Jelovcan from Mirabaud. Please go ahead. Good afternoon as well. Three questions from my side. The first one, you haven't talked about Paradise 2.0. You said when you launched the Paradise in August that it should follow probably one year later, so soon. I guess you're ready for that, so that you can also include that in the VA window in November. Is that the correct assessment? The second question was more about white label KS10, if you can elaborate a bit on that product, how it develops in the market. The third one is that, Demant reported very strong Q1 results, mainly because of their new premium product Oticon More, and just wonder, do you see them already in the market, or is it too early to tell, or if you can add some granularity there? Thanks. Thank you. On Paradise 2.0, we do stick to our roadmap, which foresees improvements to the Paradise in the fall season. I'm not going to go into what the improvements are, but we're, as I said earlier, we follow our roadmap, and so far, we've delivered everything on time, despite COVID. On the white label product with a large retailer, it's well-received as a product. It has a lot of strong functionality, and we continue to have a very good market share within the channel. It's relatively new in there. I think they changed their product in April, so I think early innings, but all indications would say we have a very good product at that price point in that channel. I think on the Demant question, we took note that they launched a product. As you may imagine, we hold the Demant in high regard. They're the player in the marketplace and with their capabilities. Yes, our sales force comes across them. We're still confident in our Paradise sales momentum and our ability to, as we go, convert the one or other competitive account. Okay, thanks. Just on Paradise 2.0. I totally agree that Paradise was a good success, but a bit unlucky with COVID. Now when you launch it in fall, hopefully, this bloody pandemic is over. Is the 2.0 big enough, significant enough that you have much more tailwind with the launch because of COVID is now off? I would say market share-wise, we had very good tailwind with the Paradise 1.0. I do not worry about it from a timing of the launch. I think it was actually a good thing to create more interest on the audiologist side. I think we will see that Paradise 2.0 will bring some good improvements to the product, which are noteworthy for people to try yet another product, and that's what the intent of the 2.0 launch is. I think it will allow us to sustain our momentum. Okay, great. The next question comes from Kit Lee from Jefferies. Please go ahead. Thank you for taking my questions. Two, please. My first one is just on the Paradise launch. I'm just wondering if you did manage to achieve any price uplift for this model on a like-to-like basis. Just appreciate, the last 12 months was a bit of a unique situation, and I'm just wondering whether you did manage to achieve the price uplift that you were always trying to do so with the latest launch and whatnot. From here, how do we think about that pricing level in the next 12 months for your latest products? My second question is just a clarification question on the structure improvement. You mentioned that there are going to be additional savings from that for fiscal year 2022. Is that just from the annualization of the benefits, or are you finding more areas for efficiency in 2022? Thank you. Yeah, on the price lift side with Paradise, we did get a positive improvement relative to what the model was selling on. I think we've seen that in the regular markets where there are no significant changes from reimbursement also being pretty steady. I think there is the French situation, which changes our average, but if you go country by country, I think we're holding onto the price increases we have put in place with Paradise at this point of time. On the structural improvements, what we commented on was predominantly the annualization, which plays a significant role in the margin bridge year-over-year here. I am sure we will find one or other structural improvement, which we will put in place in the next 12 months. It's not going to be at the same order of magnitude than last year. I think last year was an accelerated year, and we will be far more targeted. For the model side, it's really the annualization. That's very clear. Thank you. The next question comes from Maja Pataki from Kepler Cheuvreux. Please go ahead. Yes, good afternoon. Two questions from my side, please. Arnd, could you talk a bit about your KS10 offer? I understand it's a rechargeable solution. I've somewhere read that it also offers some remote services. Can you provide us some feedback whether the fact that you can get a KS10 that literally has all the high-end, or many of the high-end features from the private market, whether that has caused some of your audiologists to call up and say, "What are you doing?" That's the first question. My second question is with regards to your structural savings going forward. You've just indicated that there are small pockets of structural savings going forward, and there have been a lot of questions with regards to your margin levels and how to think about that going forward. Shall we just think about Sonova having seen a step-up in margins and going forward, the investments and structural savings, plus the business mix are going to result in moderate margin improvements on the guided 2021, 2022 levels? Thank you. Maja, thank you. On the KS10 discussion, it's not a fundamental change to what was the products in the channels between the Marvel and the predecessor to the KS10. I think it was more important when we changed our strategy on the channels that we get out of the branded side. We don't hear a lot of noise of the audiologists if the product has a different brand and a different housing. They're more worried about the consumer having full transparency, which they don't. We haven't heard a lot of noise around it, and we feel comfortable there. On the margin side, yeah, I think you're going to see smaller improvements to the EBITDA margin coming out of more standard things like volume fall-through and continuous improvement exercises and activities, trying to balance price at the one side and what you have to invest into growth. I think there will be some increment of that pool which drops to the bottom line. I think this year is the year where we're achieving an exit run rate, which will have the vast majority of the structural improvements of Sonova from the last three years factored in. Understood. Can you please get back to the remote services for KS10? Is that part of KS10, that there is some optionality to do some remote- Yeah. -fine-tuning? Yeah. If you would go to Costco has started to engage on remote service for some of their stores because they're also interested to provide choice to their consumers. In that regard, you would find the product with a remote service offering. It's, I think, not offered for all of the different sites. I'm not that close there. I would expect a similar slow adoption as we see in other parts of the market. Thank you very much for that. Do you believe that based on the fact that you could basically cut down the visits to Costco, if you take up the remote fine-tuning, over time, Costco could take greater market share within the U.S.? I think Costco still has a pool of consumers, which are their loyal consumers, which they can penetrate more. I don't think it depends that much on the price point. I think nobody goes to Costco who is not a loyal Costco customer. Not a lot of people are going there because of the hearing aids. That's at least my read. I think in general, ultimately, they're penetrating their customer database and the people who go into Costco either way. Thank you very much. Sadly, we're coming to an endpoint here, timing-wise, and I know there are still two open series of questions. I would ask the colleagues to reach out to Thomas, but we have to move on to a different event here. I want to thank you for your interest and the questions, and wish you a good rest of the day. Thank you. Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.