Good afternoon, everyone. My name is Ellen Bjurgert, and I'm the Head of Investor Relations at Coloplast. On behalf of Coloplast and the entire Investor Relations team, I'm delighted to welcome you to today's ESG event. We have an exciting program lined up for you today. We will start shortly with a presentation from our CEO, Kristian Villumsen. He will talk to the company mission and our newly announced sustainability strategy. We will invite colleagues from across the company to talk about different ESG topics, ranging from improving products and packaging, to our value chain footprint, to governance and key risks, business ethics and compliance, as well as information security. We encourage you to participate in today's event by asking questions. There will be two Q&A sessions, and you can participate live and use the dial-in details to ask questions, or throughout the sessions, you can post questions in the live chat function. If you are dialing in, please remember to dial in in good time and place yourself in the queue. Without further ado, I will now hand over to our CEO, Kristian Villumsen. Hello, my name is Kristian Villumsen. I'm the President and CEO of Coloplast. I've been part of this wonderful company for more than 14 years, part of the Executive team for more than eight years, and the CEO for a bit more than three years. I'll open the program today and really talk to you all about our company mission and our sustainability strategy. Our company has been devoted to the mission of improving the lives of people with intimate healthcare needs for more than 65 years. I wanted to open today by sharing a few of the stories behind this mission. Here are three of our customers. Katrina from the U.K. is somebody who, a few years back, found herself in years of pain and not really getting a diagnosis, living a miserable life. She went through a medical examination and eventually got the diagnosis of colitis. She had her colon removed, an ostomy, and she'll tell you that one of the most important things that happened to her to get back to a normal life. She's today a patient advocate and deeply involved in the conversation of taking up the stigma of living with an ostomy. Wanyang from China, a musician. He a few years back was diagnosed with colorectal cancer, underwent surgery, but post-discharge really struggled with finding a way to manage this new situation. He got a lot of help from his wife. He also got a lot of help from our care advisors in China and gradually got to a place where he knew how to handle his routine on a daily basis, that he wouldn't leak. He's now back to his big passion in life, which is playing music. Emma from Japan, who in medical school was diagnosed with a rare digestive disorder, which resulted in her going through surgery, getting an ostomy. She graduated from med school and is now as a doctor in a unique position to both involve doctors and patients together in building great standards of care for ostomates in Japan. Those are three examples from the world of Ostomy Care. If we look to our world of continence care, Tabitha to the left from the U.K., back in 2014, went through an accident that basically paralyzed her from the waist down. Tabitha had always been deeply involved in sports, did a lot of sports, but found herself in a situation where she was discharged with an indwelling catheters, tubes attached to that, and a urine bag around her leg whenever she moved around in a wheelchair. Only later on did she discover compact female catheters and the routine of intermittent catheterization, which basically allowed her to take up wheelchair tennis. She's now a champion and has multiple trophies and awards to showcase her talent. Christian from Denmark is another SCI athlete. He was born with a spinal cord injury, and has basically lived his entire life with the use of a wheelchair. Christian has managed to build a great routine that he knows how to manage his condition and has progressed so far that he is today a member of the Danish Paralympic team. There's Bob, who used to be an extreme sports athlete, but 30 years ago suffered a severe accident and for years did not return to doing his sports, really because of fear of bowel accidents. Bob took up the use of a product called Peristeen that basically allowed him to regain control of his bowels. He's now back to biking, snorkeling, and scuba diving. Three examples from the world of continence care. Here's three more. Victor, who originally comes from Spain, but now resides in Denmark and has been through a very difficult situation, period of his life with chronic wounds that for many years could not heal and basically had a debilitating effect on his capacity to live a normal life, including traveling with his family. Through long work with healthcare professionals and support from Coloplast and our products, he's come back, the wounds have healed, and Victor can now travel again with his family. Brian from the U.S., at the age of 18, was diagnosed with erectile dysfunction. He spent years trying different medications, got lots of side effects from those medications, and really it turned out that he had a venous leakage, and that he needed a penile implant. Brian got the implant and basically regained his confidence. Then there's Anna from Sweden, who had cancer in her throat, went through a total laryngectomy, had a voice prosthesis implanted, and now for her daily routine, uses heat moisture exchangers and a number of supporting products that allows her to speak and breathe at work. Nine people and nine examples of people's life being completely debilitated by intimate healthcare conditions that are very hard to deal with. Also nine examples of people who found a way through it, through a combination of perseverance, great products and support that they've now come back and live a full life. Really, these are nine stories that are also a testament to the human spirit. In our company, what really gives us meaning is the purpose that is reflected really in helping millions live a better life. The nine stories I briefly talked about, you can multiply that by a lot, so Coloplast is involved with helping millions of people live better lives around the world today. We believe that this mission, and I think I hope that I've also showcased that with these initial stories, is really about enabling people to live the life that they want, that you can take care of yourself. Really, it's about enabling what we say internally in the company that you can be you. We also believe that this is an important answer to one of the key challenges healthcare faces today. Over the course of the next 25-30 years, more than 1 billion people will enter the age bracket of 60+, which is the point in a human life where we all start to consume a lot more healthcare. Healthcare systems across the planet will have to answer the question of how they're going to meet this challenge without breaking the bank. Part of that answer is basically to help patients take care of themselves and keep them out of hospital. We're basically trying to build a company that does that and does that at scale. We've also found a very lofty title for it that we call, as you can see here, The Consumer Healthcare Company of the Future. It is a combination of building superior and clinically differentiated products, a long-term and deep partnership and commitment with healthcare professionals to basically build standards of care, and a commitment to serving consumers directly. Supporting patients from the point in time when they're in hospital to getting home on a good routine, but also being there for them as they run into different issues that are related to their condition later on in life. It's a company where we're also investing in building the evidence that this model works, that we take this evidence and prove that through data and digital tools, that the work that we do around products, clinical partnerships and supporting clinicians is worth the payer's buck. We think of this work as taking a real role in organizing the care continuum today in markets where they are often quite disorganized and do not produce good results for many people with intimate healthcare conditions. This does not happen automatically. You need companies like ours to basically deliver this type of impact. Our strategy, we call Strive25. From a performance point of view, we continue the guidance that we've had in the market for quite a few years now of sustained organic growth on a yearly basis between 7%-9%, and a margin of more than 30%. It's a strategy that's very much focused on innovation and growth. We grow across all the business areas that we're in. We grow across all our regions. We've done so for 65 years. The strategy is about setting the company up for doing it for at least another 65. This is also a strategy that continues the work that we've done for many years around efficiency. We do work both on the operations side of the company and the business support side of the company to continue to have good scalability that allows us to continue to invest in and evolve the company. This is also the first time, or the first strategic plan where we elevate sustainability to be an enterprise theme. That's also why the tagline for our strategy is Sustainable Growth Leadership. We want the growth, of course, to be sustainable over many years, but we also want to run the company in a sustainable way. We've done a lot of work on this in the past, but now we're also elevating it to be an enterprise theme. We put emphasis in Strive 25 on improving our environmental performance and, while, of course, continuing all of the ongoing commitments that we have to running a responsible company. For us, in this strategic period, we're doing a lot of work on improving products and packaging and reducing emissions and later on in the program, Camilla Pagh will be back here on stage and tell you more about what it is that we're doing. We've also put our money where our mouth is. We understand that if you wanna do serious initiatives, they require, of course, funding to get the work done, get the resources in place, and we have allocated DKK 250 million in investments over the strategic period to deliver this plan. We're off to a good start. Still quite a lot of work to do. Let me come back to innovation, 'cause we have, with users needs at the center, launched innovative products across all business areas. Like I said in my opening remarks, part of maybe the most important impact that we have and the contribution that we have to the world is serving the users that we have. At the core of that service is product. It's products. On the Ostomy Care side, it is the SenSura Mio portfolio, the market-leading portfolio, that revolves around an idea of building products that conform organically to your body. Continence Care, it's the SpeediCath franchise or SpeediCath portfolio. Here you can see the newest addition to the family, which is called SpeediCath Flex, which is doing great across all developed markets. On the wound and skincare side, we really have a lot of focus on the Silicone segment, and our core brand is Biatain. The idea that uses 3DFit Technology where the dressing conforms to the wound bed. On Interventional Urology, our two lead brands are Titan and Altis. We continue to innovate. Even though we have leading portfolios in all the segments that we're in, we continue to innovate. What drives us is really that there are still clinical issues out there that remain unresolved. For ostomy, many people with an ostomy still worry about leakage. Many still have problems with leakage. For people who use intermittent catheters, way too many still have problems with urinary tract infections. If you have a neurogenic bladder, like I showed you three stories earlier in my presentation, having urinary tract infections can be dangerous. The core response from our side is what we call our clinical performance program. It is a portfolio of projects with a focus on Ostomy Care and Continence Care, where our aspiration really is to bring to market a new generation of products that make a clinical difference, and by that also set a completely new standard for what you should expect as an ostomate or a catheter user. You can see here in the lower right corner of the chart an example of one of the products that's coming out of this program on the ostomy side. We call this product Heylo, and it's really a new digital ostomy solution that provides a leakage sensor and a way to warn you if you are about to leak, that you can discreetly go and change a product without actually having a leakage. It's a great example of a product that is not just new to market, it's also new to the world. There's nothing like that out there. It's a product that we now have in pilots with payers in Germany and the U.K., where we try to demonstrate the value that this innovation brings on the payer's data to basically find a path to reimbursement. We're quite excited about it, and one of the things that I'm particularly excited about is that none of the users who get their hands on the product wanna return it, which is always a good sign. I talked about our commitment to partnership with healthcare professionals. We listed our company on the Copenhagen Stock Exchange back in 1983, and the idea was to raise capital to invest in building healthcare standards. We do that to this day in the platform we call Coloplast Professional. It's about education, master classes and lots of events, advisory boards and panels, research projects. The notion is that we involve healthcare professionals in our work and we invest in supporting healthcare professionals in their work. Literally on a monthly basis, we engage, across the world, thousands of healthcare professionals on the Coloplast Professional platform. We're very proud of the work in the company in this area. We're also very proud of how we support consumers. Through our consumer support program that we call Coloplast Care and our direct-to-consumer setup, we support users across countries and across business areas. In our databases today, we have more than two million people. That's equal to about half of the people of the consumers in the markets of Continence care and Ostomy Care in developed markets. We carry out literally millions of conversations on a yearly basis. We talk to people like the nine customers that I introduced you to in my opening remarks, and we try to help them. This is not something that you do with robots or digital solution. This is a very human service. It's a high touch type of service where you call and speak with people who know the products, who know your conditions, and who can engage in difficult conversations about intimate topics that are often connected with taboo and shame, that people are only reluctant to talk about. Here you can really see the mission at work. I am very proud that we have built this program, the Care program, in more than 30 markets around the world. We've built the program bottom up. What that means is that we have partnered with healthcare professionals in all of these markets. We've designed the program for the market in question, for the standards that are in that market, and we have endorsement from healthcare professionals for the type of work that we do in Coloplast Care in our DTC setup. There's more to do on developing markets. Over the past 15 years, we've run a program that we call Access to Healthcare, run more than 60 projects in a combination of public and private partnerships where we've invested in education, awareness, access and funding. You should think of this as long-term type of investments, where we engage multiple parties on the patient side, healthcare professional side, and on the regulator side to basically build access. What you see here in the middle are an example of countries where we built access for reimbursement for intermittent catheters. You tally up the populations in those markets, and it adds up to around 300 million. These are now populations that have access to good technology to manage an incontinent bladder condition that if you go back 10 years, they would not have had that access. We're also building products and designing products that work for countries where the capacity to pay is lower. Now, Atos Medical was an acquisition that we completed just recently. The work that we do on the sustainability front really mimics what we do in Coloplast at large, serving more patients. Here, we need to serve a lot more patients. Only 1/3 of patients in these markets are treated with products today, and of those served, only 50% actually use the appropriate amount of products. Also here, we're very focused on products and packaging and emissions. Finally, none of this work would be possible without the 13,000 people that work in the company. We're investing in our people. We're investing in the leadership bench of the company. We're investing in retaining and providing a good employee experience and bringing talent into the company. We're committed to building a culture that's both inclusive and diverse. On that note, I'd like to hand over to Camilla Pagh, who will talk more about the work that we're doing around products and packaging. Thank you. Thank you, Kristian. My name is Camilla Pagh, and I'm heading up Global Quality, Regulatory Affairs and Sustainability. I would like to start talking about our governance and organization of sustainability in Coloplast. As part of creating the new strategy, we also decided to look at how do we organize for this and who's gonna be the governance of the initiatives that we start. We decided to create a new unit, the Sustainability unit, who is owning the strategy, who is deploying the initiatives that we have, and who also follow ups on the different things that we have ongoing. That unit also looks at external trends. They also identify new opportunities that we see, internal in the company. Lastly, they also support any types of communications around sustainability, both for internal purpose but also external purpose. The Executive Leadership Team is the governance of the initiatives that we have. That's also new, and that's also elevated since before. We have quarterly performance updates with the Executive Leadership Team, where we present how far are we with the initiatives and also if we want to change anything within the Strive25 period. The Board of Directors are informed on a quarterly basis, and they are also involved in a strategy session yearly, where we look at if we need to do any kind of corrections to the plan. Then lastly, also, the Audit Committee is involved at least once per year when we do the Annual Report, when we have the Sustainability Report final and ready to go out externally. A lot of new organizational structures, but also elevated governance. This slide, Kristian showed earlier, he talked a lot about the mission and the purpose of the customer and our users. I will talk much more into improving products and packaging, and then Nassera will come after me and talk about reducing emissions. I also want to just remark on the last part of responsible operations and our commitment towards that. This supports the SDG targets 5, 8, and 10, and I will have a little bit of comments around it, but so will Megan and René later on today. We have a lot of initiatives within responsible operations, and we will continue to do so throughout the whole period. One of the actions within responsible operation is safety and health work environment in Coloplast, which is a key thing for Coloplast and has been so for many years. We last year launched a new Safe Plan 2.0 with a very ambitious target of reaching 2.0 ppm Of lost- time injury in Coloplast. We are currently at 2.3 ppm in the last quarter. The injuries covers all from our headquarters functions throughout our production, our distribution, and all the way throughout sales, should there potentially be a car accident for our sales people. It covers all injuries throughout the company, and we are working towards this target and have good progress. I just want to touch about our global crisis management model. We have identified a process of how we wanna work when a crisis occur in Coloplast or external factors hitting Coloplast. Recently we used that model for COVID-19, and the first part is to initiate a global task force and also local task force to support this case. For the COVID-19 case, the focus was on health and safety for our users, but also in general, three key priorities. Keeping our employees safe while keeping the production running to serve the customers with the products that they need, and we have done that very successfully throughout the Corona period. Throughout that we also created the global contingency plans and guidelines, and a lot of safety measures was initiated around, and have now been reduced in the countries where Corona doesn't have the same impact on a daily basis. It's still out there, and we still use the guidelines that we created. We have used the same global crisis model for the current crisis around the war in Ukraine. These was a few examples of our responsible operations. Before I move into the very specifics around products and packaging and what we do there, I just want to talk about quality. To support the medical device products that we create, our mission is to deliver safe and reliable products to our customers, and we do that by having a unified global management system. We have global processes, we have global systems, it's unified throughout all our sites, throughout our innovation, which make it very simple and efficient to do audits and verify system, but it also makes it very easy to change these process throughout. The way that we look at our standards is that we comply to the external standards, and these are the ones that are created and established by, for example, the European Commission, FDA, and several others. We live up to those throughout our whole value chain from our suppliers, our design, production, distribution, and again, how we sell our products. To verify how that system is performing, we have independent reviewer coming to us and doing audits, and the same does our notified body that supports us. Just last year we spent 110 days to verify that our system is in control, and we did that successfully with very few non-conformities or remarks from the auditors. All of our sites and distribution sites that are certified are leaning towards the compliance of one or several of the systems below. The ISO systems or the MDSAP, MDD, or now also MDR. Then just a little bit about MDR. The Medical Device Regulation is the replacement for the Medical Device Directive, the MDD. The change is happening, and the reason for changing is to have more focus on clinical evidence. Meaning showing that your products are safe for users to use with the intended purpose that it's created for. There's also more focus on post-market surveillance, which is the feedback from the customers back to the companies, so we can improve the products on the market, but also bring that knowledge back to our innovation for future development. Lastly, it's also about creating data transparency in the industry. For Coloplast, this is a seven-year program starting off years ago, mobilizing a team to look into the different requirements, how to build that into our quality management system, and then the first key milestone in May last year, 2021, where we had the first compliance towards the system part, but also all our Class I non-sterile products. The next critical timeline is in May 2024, where all products needs to be in compliance with MDR. We are currently at 75% of our revenue that is MDR compliant, and we are working full speed ahead and on plan towards 100% MDR compliance at the deadline, May 2024. We're also gonna talk about plastic, because a lot of our products have plastic as part of it design. We are medical device production, creating products for a medical regulated business. We know we have a responsibility. Before I talk about what kind of priorities we set, I just want to talk a little bit about why is plastic a good material. As Kristian talked about, we are developing solutions for our users who have an unmet need. They also have worries that we would like to minimize. Worries like having a leakage when you use an ostomy bag. Worries like urinary tract infection if you use catheters. To make solutions for these unmet needs and also minimize the worries, then plastic is currently the best material to use. Plastic is really easy to design with. It's easy to mold and bend and mold together with other materials. It's also very hygienic, and also high quality, and also easy to produce with. Overall, plastic is the best solution for the products that we are providing to our users to meet the needs that they have. Saying that, we also know there is a global challenge around plastic. Not producing with plastic, not using plastic as a user, but actually how plastic is reused after use of products. Our clear priorities is listed here. Product safety and clinical performance cannot be compromised. As I said, we are in a heavily regulated industry, and we have limited options when it comes to redesigning the core of the product. We want to make safe and reliable products. We have options around the products, the packaging material, the primary packaging, et cetera. We will focus in on that, but not compromise our clinical performance. Single-use products are the easiest and safest option for our users. All the products we produce are contaminated through usage from the users. In ostomy users create feces, we have urine, we have wound care exudate. When you have a used product, it is a risk of contamination for the users, but also for the healthcare professionals. Single use is the safest option for our users. Sustainability should be easy for our users. Our users haven't chosen the condition that they have, and they shouldn't be concerned about sustainability in regards to their products. They should and can rely that Coloplast is doing everything they can to make sustainable products, and that we have our focus on the environmental footprint of the products that we produce and provide to our users. The next one is identify new materials and support the development of new technologies. Again, we are aware that changes need to be done on a global scale, and we want to be part of that journey. We will not develop new material components ourselves. We will rely on our suppliers. We will rely on partnerships with suppliers, but also people who are developing new technologies. Doing much more of that going forward to find alternatives we can then implement into our production and into our designs. The last one here is the partnerships are essential across the industry because this is a global challenge, and for us to solve it, we need to stand together across the different industries, but also within the industry. You can read much more about our position on plastics on the webpage. We are also very mindful when it comes to other materials that we select for our products when we design, and also in general, monitoring of the products we have on the market. Our products are safe for users for the intended purpose that we have set out. We comply with all the international regulations and also the local ones. A few main of them are the REACH list, the California Proposition 65, EU MDR also have some components, and several more. We continuously monitor those lists and regulations to make sure that our products are in compliance. If a material is coming up on the list as a candidate to be banned or to be replaced, we initiate mitigations. We have a substitution group looking into what kind of substances on this list and what should our response to be to this. We would initiate a project. We also monitor this list to make sure that we don't incorporate these substances into our innovation pipeline, making sure both to react if we have a substance that are in our products on the market, but also making sure we don't add it to the upcoming projects to the market. You can also read more about our positions towards substances on the webpage. We also talk about sustainability in innovation. One thing is all our legacy products, where we have concrete things we are doing at the moment in projects, but we also want to make sure that our products coming from innovation is more sustainable going forward. To do so, we have developed six eco design principles. First one, chemicals, is related to what I just talked about, what kind of substance are in our products. Second one is about material types, making sure that we move towards more renewable materials, even maybe bio-based materials, making sure that we are doing utmost to make it more sustainable. Number three is the size and the weight of the material. The less material we use in our products, less carbon footprint we have and also less materials to reuse afterwards or recycle afterwards. Number four, recyclability. What types of products do we get in that is recycled, and how much can be recycled end of life of our products? Climate impact emissions. Throughout our innovation, we evaluate what is the global impact of a new product design throughout the whole value chain, and by that minimizing it, so we minimize carbon footprint per product that we produce in the company. Lastly, production waste. We want to make sure we use as less material as possible in the process and create less waste, and the waste that we actually create, how do we then recycle that waste? These eco design criteria is discussed throughout our innovation process in the project group and is also reported to the steering group during the innovation process. To sum up, what is the activities within improving products and packaging? We are looking at our secondary territory packaging that is already made of renewable materials like our packaging boxes, shipper boxes, labels, instructions for use, and now focusing on the primary packaging, moving closer to the product, where we want to either minimize or going towards renewable materials. There's an example here on the slides where we are changing from a PET tray to a recycled PET tray for our ostomy protective seal rings. We're doing similar within our ostomy baseplate in general. Our ambitions for 2025 is that 90% of packaging is recyclable, 80% of packaging consists of renewable materials, and then 75% of waste is recycled. Just as a comment around recycle of waste, the target we were setting out in the strategy was 50% of our production waste that should be recycled. Last year, we had a breakthrough in Hungary, recycling some of our materials coming as waste, which Nassera will talk about in a minute. By doing that breakthrough, we actually ended the year on a level of 58% of our production waste being recycled, and even more just the first quarter of this year. As we continuously do, is being ambitious and wanted to improve our targets, we have then decided to increase the target for 2025, and have changed it from 50% to 75% of our production waste that will be recycled going forward. Then we will also do even more projects towards the two other initiatives. Now I'm gonna hand over the work to Nassera who will talk more about reducing emissions. Thank you, Camilla. Hi, everyone. My name is Nassera, and I'm heading up the Sustainability team here at Coloplast. It has been a pleasure for me to be over here for about one and a half years, and I look forward to talking to you more about our value chain footprint. Just as how Camilla presented, in order for us to achieve our ambitions towards improving products and packaging, recycling of our production waste, and everything related to reducing emissions, we need to work with partnerships. First, before I go into our priority area of reducing emissions, I would like to cover a little bit about the type of partnerships we are working. Recently, we entered into a partnership with the Danish Technological Institute, and here we are combining with various different partners to look into circular products, to look into recycling technologies, and also the infrastructure needed to do these kind of partnerships. This project is actually supported by the Ministry of Environment in Denmark. What we are going to do with this project is actually to take one of our packaging projects and then see if we can test it out and try out some more recycling technologies, and potentially look for new materials, alternative recycled materials that can be used in our packaging. We will also look at our own production waste and see if the mixed polymer waste that we have in our own production can also be recycled using these new recycling technologies. I think this project will help us, and this partnership will help us to not only advance recycling technologies, but also give us a better understanding of what is actually feasible and what kind of infrastructure is available, both for us, but also for our external stakeholders, our users in the future. We have also partnered with the Copenhagen Business School within this MADE program. It's called the Manufacturing Academy of Denmark. Here we are looking at sustainable business models and also how do we improve the value chain design. This is just one of the steps we are doing in order to improve these kind of new technologies. Also in the future, we would like to work with our suppliers, various other partners in order to solve the problems regarding plastics. One such example is our partnership that we have created in Hungary. Why did we choose to do it in Hungary? As Camilla mentioned, we have a target of recycling 75% of our production waste. Just to give you a context, 80% of our production waste actually comes from our largest production sites in Hungary. That's why we partnered up with a certain supplier in Hungary, where we are looking at, as you can see on the slide here, different types of our mixed waste. Those are our ostomy bags and the cuttings from the ostomy bags. Mixing it with rubber particles in order to create floorings that could be used in kindergartens, you know, for sports fields, railway stations. We're also going to try and test this kind of flooring in our own marketing material and when we go out talking to our customers. This type of recycling actually helped us achieve a recycling rate of about 65% in the last quarter. Now, this is what you call a downcycling. It's any day better than landfilling or incinerating this waste. Our teams, not only in Hungary, but all our production sites, are currently looking at various different types of partners. We're actually in dialogue with a certain partner for potential chemical recycling of this kind of waste. The more we progress with such a partnership, the more we would like to share with you. Now, moving on to our commitments towards reducing emissions. I'm really passionate about climate action, and ever since I've started here at the company, whether it was management that I spoke to or my colleagues, everyone was committed towards climate action. Therefore, we went and committed ourselves to the business ambition for 1.5 degrees. What this really means is we have set ambitious science-based targets that are in line with maintaining the temperature increase up to 1.5 degrees in accordance to the Paris Agreement. We have done an entire screening of our emissions, not just in our own production, but also across in our value chain, and have submitted our ambitious targets to the Science Based Targets initiative. We have used standard methodology to do so, and currently we are undergoing validation of our targets and ambitions. What are our targets? The graph that you see over here is our overall emissions. Emissions from our own production and our company cars, which actually accounts for about 13%, and the rest of our value chain emissions, which is the largest amount. Within our own production, our ambition is to be a net zero production by 2025. We're gonna try to achieve this by moving towards 100% renewable energy use. I wanna highlight the word energy because we wanna use 100% renewable electricity, but also phase out the use of natural gas that we use for heating. We also have an ambition of moving towards 50% company cars to be electric, and actually 100% of our company car fleet should be electric by 2030. What you see here is that the largest amount of our emissions comes from the raw materials that we purchase. Therefore, we have set a target for our Scope 3 emissions, the value chain emissions, that we want to reduce 50% of these emissions per product by 2030. This is a very ambitious target, and we would like to talk to you much more about how we're working with our suppliers in order to reduce these emissions. While we're doing that, we are also focusing on our transportation and distribution of our products. We have put a limit of 5% of air freight for transporting and distributing our products. Actually last year, we tried out rail transport for long distances as well. That really helped reduce our emissions as well. Of course, in the last couple of years, business travel has reduced tremendously, but we do have an ambition of maintaining that even going forward, and are working on various different ways that we can work on a remote basis. I wanna give you an update about how we are aiming for and also working towards 100% renewable energy use. This is a very ambitious target because it will help us achieve the net zero production. For the last few years, Coloplast has been buying renewable energy certificates. That also means up until now, 67% of our energy use is already from renewable sources. But we do acknowledge that renewable energy certificates does not add additionality in the market. Hence, we have committed ourselves to converting to power purchase agreements in all our production sites globally. We have been currently in dialogue with two suppliers here in the European region to talk about two power purchase agreements that would convert a huge section of our electricity use to renewable sources. We have also agreed to, or actually already initiated a project to install solar panels on the roof of our site in the U.S. The interesting thing over here is, as Kristian earlier mentioned, we've also allocated DKK 100 million in CapEx to phase out the use of natural gas in our production. We are looking at various different types of options, whether it is converting to electric heat pumps, whether it is going for district heating options, or even using biogas sources. In Denmark, where we have our headquarters, we are actually in dialogue with suppliers for moving towards a district heating option. We have currently in our Hungarian site, our largest Hungarian site. One site we are looking at a district heating option, and another site we have already started converting our heat pumps to electric heat pumps, and the project is well underway. We are doing quite a good progress on this. We also understand the challenges that come with this, and we are working together with our different suppliers in order to achieve this ambition. I'd like to talk to you about our supplier sustainability program. This is a very important program because it not only helps us achieve our ambitions towards reducing Scope 3 emissions, but it also helps us engage with the various suppliers in order to support us in improving products and packaging emissions. For the last many years, we have been talking to suppliers and assessing our suppliers in what we call the high-risk countries. We assess them from a workplace assessment and also an environmental assessment, and we decided to choose to work with some of the suppliers and not based on their performance. Now, we have actually upgraded this ambition to include all our direct and indirect suppliers. To give a context, that's around 11,000 active direct and indirect suppliers. Last year, we did a materiality focusing on environmental, governance, and social metrics for all these suppliers and have narrowed down our, what we call our high-risk suppliers that we would like to engage even more with. Currently, we are doing pilots to test out in what format can we engage with them. One example is last year, we talked to around top 50 high-emitting suppliers of our raw materials, and that's around 75% of our total emissions from raw materials. We got some interesting answers back from them. Some of our suppliers, they are way ahead of the curve. They have also signed up to science-based targets, and they are already working towards reducing emissions. There are some other suppliers in that group who actually have not even started on this journey of reducing emissions. We do believe we were gonna continue on this engagement program and then work with them in order to achieve our own ambitions, but also together with them overall achieve these ambitions. I wanna talk to you... I mean, so far what I have been talking about is a lot to do with how we work in partnerships and how we talk about our impact on the climate. The thing is, we also need to consider that climate change is happening, and climate change does pose a risk to us as a production company. Climate risk is a financial risk. Therefore, we have signed up to the Task Force on Climate-related Financial Disclosures. What this is a framework which gives companies like us some recommendation on how we should, of course, talk about climate risk, both our impact on the climate and climate's impact on us, and present certain findings through our Annual Report and Sustainability Report. Not only have we now we have the executive management team as our sustainability committee that is responsible for climate change, but we have also set up financial incentives for our executives. Actually, we've set up financial incentives toward climate targets for all our employees and colleagues in the headquarters site. With our initial findings of climate risks and opportunities in our previous report. This year, we are working together with our enterprise risk management team to integrate how we identify and manage these risks as well as opportunities. I'm, as I mentioned earlier, of course, once we are not only committed towards a net-zero production, but we are working very hard towards Scope 1, 2, and 3 emission reduction targets. With that, I will conclude my presentation on reducing emissions and also the part with Camilla on improving products and packaging. Now Camilla and I will take questions from you. Thank you. Hello again, and welcome to our first Q&A session. I'm delighted to have Camilla and Nassera join me for this session. Just a reminder to participants, please use the dial-in data details to ask a question live, or enter your questions in the chat function. I will start by taking a question from the phone lines. Operator, we are ready for the first question. As a short reminder, if you would like to ask a question, please press zero and one on your telephone keypad now. Okay. While we're waiting for people to get in line, I'll take a question from the chat. We have a question here coming in on plastics. The question is: Replacing plastic components in products into more environmentally friendly plastics comes with a trade-off between accepting higher input costs versus speed of implementation of newer plastics, versus quality and reliability of products. Can you talk about the constraints that the Coloplast ESG group is working under in terms of financial constraints when thinking about, you know, bringing these types of products to the market? Let me try to answer that one. With the current example we had before in the presentation about our PET trays that we're changing for our seals. In that case, it's a matter of when is the technology ready for us to use in our products. In this case, we have been able to find materials where we would have the same cost. The cost coming in is actually on the same level as the one we had before. In this case, we don't see that challenge. Then, of course, we'll continue to monitor what kind of materials do we see out there, and then we will have that discussion when it occurs. For right now, we don't have any facts showing that this will have an increased cost directly. Yeah. All right. Great. Just to check, do we have a question on the phone lines? We have no questions in the line. All right. Okay, I'll go back to the chat. Actually, a couple of questions coming in here on Coloplast's position in Russia, given the war currently going on in Ukraine. I think, in general here, I mean, at Coloplast, we're committed to keeping our employees safe and to serving our users within ostomy and continence care. These are people that are living with intimate healthcare conditions, and we are committed to serving these people so they can lead, you know, dignified lives in Russia and in Ukraine. I'll take the next question here on the chat. Are there any materials on the horizon that could replace your products' reliance on plastics without compromising on safety and clinical performance? If so, do you have any visibility on how long it might take for these to be commercially available? I think our strategy is focused on packaging. That is also what many users are asking for, like how can they make packaging more recyclable. Of course, since our focus is on primary packaging, we do need to keep the product in mind. For that, materials are available. We've also tested it out. We of course will not launch it without prior testing, without compromising on any kind of clinical performance. For that, the technology is available. When it comes to products, I think we would do far more research, and then our integration of our pipeline, you know, that will also help us understand better. Great. Another question here. Can you elaborate on your path towards science-based targets? How are the targets validated? And then how do you foresee the path towards scope three reduction by 2030? What is the biggest challenge? We started with doing an internal initial screening of all our Scope 1, 2, and 3 emissions. We gathered the data from our own production, but also by talking, as I mentioned earlier, with suppliers. We have submitted the screening and our targets, our ambitions to the Science Based Targets initiative. The validation process is more of an engagement with them to understand whether we have followed the standard methodology and that we are in line with this 1.5 degree We're not waiting for the validation to be completed. We are already working on those ambitions. Biggest challenge when it comes to our Scope 3, again, is because most of it comes from our raw materials. The engagement with suppliers is key, and this is my way of also reaching out to our suppliers that potentially we want to engage with you, and that they should also join us on the journey. Great. Another one coming in here around emissions reduction. Will you terminate supply agreements if suppliers fail to comply with emissions reduction targets? Do you use external audits for emissions targets? So far we've done external audits, as I mentioned, for workplace assessment and the environmental assessment of a production facility for our suppliers. We will, through these pilots, try to understand better what is their emissions profile, and then we do have an internal decision board on how we decide whether we want to work with their supplier or not. I think we will take the same dialogue together with our decision board before we make such a decision. Yeah. Great. Another question here, a good one on users. Are your users demanding more environmentally friendly products? What about payers? Is this becoming a criterion when bidding on tenders or applying for reimbursement? I can answer that one. Sorry. We see more and more questions coming from our users about primarily the substance that are in the products, but definitely also the amount of materials, as Nassera talked about. We see the same reflected into the tenders, particularly in some countries, particularly here in Sweden, but also in other countries where that becomes a parameter. A lot of questions around emissions, what kind of materials, what kind of renewable materials are in the products, et cetera. Definitely more coming. Less questions from the payers for now. All right. Yeah. Thank you. We have another question here on Russia. If we have any suppliers from Russia, nope, we do not have any key suppliers from Russia. Another question here on the topic of MDR, Camilla. Have you discontinued any products due to MDR? And sort of, what percentage of revenues does this represent? What is the risk for the remaining 25% of Coloplast revenue that is not yet MDR compliant? If we take the discontinuation part as a beginning, when we started the project, we evaluated which one would be difficult or not possible to move towards the MDR compliance, and then we made a plan of converting our users to other products. We actually have a limited number of products that we have discontinued, but we have been able to transfer users to other products. In that sense, it will be leveled out throughout the program. We will not have any revenue reduction when the program is done. Risk of being done, I would say is very limited. We have been early started in the activities, and we expect to be done before the deadline. I know there's a lot of challenges in the industry, and particularly within the notified body capacity, but that's not a challenge that we are meeting. We have been in due time, and are tracking very well. The risk is really low. Fantastic. Another question here. Signing up to 1.5 degree commitments, is this not a low bar to set? Given Coloplast has more focus on this compared to other companies, why shouldn't we expect Coloplast to set an even higher bar than just 1.5 degree? I think I can answer saying that we've been working with reducing emissions for many years, even before we launched this strategy. I think when we did launch the strategy, it gave us a space to do this evaluation and understand how much impact do we have. Setting the initial targets that we have done so far, we already know it's going to be a difficult one to achieve. Of course, we are following the requirements as per the methodology. Then if there is a demand, and also we see we are able to achieve much more than what we have set out to do, just like our waste recycling target, we will upgrade our ambitions as well. Yeah, certainly. I think we have time for one final question here. How are you progressing on the plan to move away from natural gas? Have you accelerated your efforts in this area given that the European Union wants to decrease its dependency on natural gas from Russia? Well, I think that here, we again should say we've had an early start. I mean, we started on these ambitions way before these kind of questions are coming to us. As I had mentioned earlier, we have already started moving away from natural gas, so we are in the process of creating these district heating plants in Denmark and Hungary. Also we've started converting to electric heat pumps. Then through our power purchase agreements that we plan to make, we will cover the electricity need for that as well. We're well underway to moving away from natural gas. Perfect. Okay, so that's all we have time for. Thank you, Camilla, thank you, Nassera, and thank you for all the questions from our participants. Now I would like to introduce our next speaker, our CFO, Anders Lonning-Skovgaard. Hi, everybody. My name is Anders. I'm the CFO in Coloplast. I've been with the company since 2006, and I've been the CFO since 2014. What I will speak about is a little bit around our governance and some of our key risks. The way we are organized in Coloplast is that we have a two-tier management structure. We have our Board of Directors, and we have our executive leadership team. The Board of Directors consists of six members that are elected at the Annual General Meeting and three members that are elected by the employees. Our Board of Directors are headed up by Lars Rasmussen, and the vice chair, that is Niels Peter Louis-Hansen, who is the head of the founding family. We have two committees. The audit committee, that is headed up by Marianne Wiinholt, who is today the CFO of Ørsted. The audit committee is where we are reporting on our financial control environment. That's where we are sharing our financial risks. We're also updating the audit committee on our IT security, our business ethics, compliance, and a number of other things. The other committee, that's the remuneration and nomination committee. That's where we are sharing our remuneration for the Board of Directors. We are discussing remuneration for Executive Leadership Team. We're also evaluating our annual remuneration report and a number of other things related to nomination. Those are the two committees that we have in our management structure. We have the Executive Leadership Team. It consists of six members since 2020, where we also announced our strategy, Strive 25, that we are currently focusing on and delivering on. I'll speak a little bit to how we organized as a company. The way we have organized the company is around our chronic business and then our strategic business units. Our chronic business consists of our marketing and sales regions. We have the R&D and the Global Operations. R&D and Global Operations also going across our wound and skin business, so they are supporting that franchise as well. We have I nterventional Urology. That's also marketing, sales, R&D, and operations. Most recently, as a consequence of the acquisition of Atos Medical and TRACOE, we have established a new franchise that we call Voice and Respiratory Care, and that includes marketing, sales, R&D, and operations. Across, we have our global business support functions, and that is our common IT infrastructure, our common finance setup, HR setup, et cetera, including our business center in Poland that are supporting all the units that we are working on. Over time, within the next two to three years, we will also bring Atos Medical onto our common infrastructure. The way we're evaluating performance across our business units, that's on organic growth and then the local market contribution. That's how we're evaluating performance across our business units, sales regions, and countries. I'll speak a little bit about our risk. The way we're working with risk in Coloplast is that all our business units, so countries, functions, are on a quarterly basis, reporting the individual risks into a small team that is then consolidating the risk picture and presenting it for me before we are discussing it at the Executive Leadership Team and at the Board of Directors level. This is something we are doing on a quarterly basis. If I just should speak a little bit to some of the key risks that we are currently facing. There's no doubt, input costs and higher salaries, et cetera, are putting some pressure on our profitability levels because we are not able to pass on it fully to our customers. Another risk we are focusing a lot on, that is healthcare reforms, price reforms. We have over the last 10 years seen healthcare reforms, especially here in Europe. Most recently, we saw a healthcare reform in France that impacted us in that specific year, quite significantly. We are saying that we are having a negative price impact from healthcare reforms or price reforms of up to -1%. This year, we are actually seeing a positive price impact because we don't have any bigger healthcare reforms impacting us. Another risk we are focusing a lot on, that is product and business continuity. As a result of the global pandemic and now also the Ukrainian crisis, we are seeing a lot of, you can say, raw material shortages across our value chain. We are working a lot and very hard across the company procurement supply chain in order to mitigate that risk. So far, we have been able to produce and supply our products to demand we have in the market. It is a risk that has increased especially due to the pandemic and now due to the Ukrainian crisis. Another risk we're also having a lot of focus on, that is legal and compliance. We are operating in a regulatory or regulated industry, so there are many things we need to be in compliance with. Megan will speak a little bit into that later on in her session. The same thing goes for cyber. Cyber risk has really also hit the risk picture, and we have also put that on the agenda today, and René will speak further to that later on and share with you how we see the security risks impacting Coloplast. That's a little bit around how we are working with risk and how our governance is around risk in our company. Just finally here, I just would like to say again that we are focusing a lot on making sure that we are in compliance with the various external standards. You heard earlier today that we are focusing a lot on the science-based targets. We are focusing a lot on being in compliance with the TCFD, the EU taxonomy, et cetera. We have a lot of focus on that, and we have also been focusing a lot on improving our internal reporting on some of these key metrics. We used to report on this data externally on an annual basis, but we have now decided to report on some of the key metrics on a quarterly basis. We started that here in the first quarter, and that is really important in order to improve the quality, improve the professionalism around our data and around our reporting in order to meet the ambitions that we have set. I'm also happy to share that the most recent research we have also seen quite an improvement. Sustainalytics, the latest research from Sustainalytics has actually put Coloplast as at the number one position across our industry. We have also seen an improvement from MSCI and the CDP research. We are improving, but we also have ambitions for more, and that's why we have lifted the whole ESG area to an enterprise theme across the company. Just finally, we have also decided to include ESG as part of our short-term incentive program. For the Executive L eadership Team, we are now measured on organic growth, on the EBIT margin, but also a climate-related measure. That's something we have introduced from this financial year. That was a little bit around the governance, key risks, and now I will introduce Megan, who will speak further to legal and compliance. Thank you, Anders. I'm Megan Olson-Lehner, our Group Chief Compliance Officer. I've worked at Coloplast for two and a half years. Prior to serving as our Group Chief Compliance Officer, I worked in our North America site on the Compliance team, and last year, my family and I relocated from Minnesota to Denmark. I'm very excited to be here today to share with you an update on our Business Ethics and Compliance Program at Coloplast. We'll be talking a little bit about governance as well as the strategic plan for the business ethics and compliance team, and then touch a little bit on how do we manage all of the changes across the industry in an organized and risk-based fashion. Then we'll transition to talking about our Ethics Hotline and some key KPIs that we use to monitor the performance of our Compliance Program and wrap up with data privacy. From a governance perspective, the Coloplast compliance governance has evolved over time and matured, and we now have four regional compliance committees. Each of these compliance committees has members from various business lines and key functional areas like finance, legal, and compliance. Most importantly, these committees serve as a forum where leaders can come together to receive an update on key compliance program developments and KPIs so that they can be informed, and we're giving them the tools that they need to make the best decisions for the organization, as well as drive compliance within their business lines. There are a lot of laws and regulations across the world that Coloplast must be aware of and comply with. In addition, there are industry codes such as the AdvaMed Code of Conduct or the MedTech Europe Code of Conduct that we also comply with. One may ask, "How do we manage all of these different rules and requirements?" At Coloplast, we have a code of conduct, policies, processes, and other standards of conduct that we use as a framework for managing how we operationalize and comply with these various requirements across the globe. An example of this is our Coloplast BEST Code of Conduct. In our Coloplast BEST Code of Conduct, we outline high-level guiding principles that address how we conduct business in an ethical way, where for key topic areas like harassment, discrimination, conflict of interest, or corruption, we have detailed policies that lay out specific requirements and expectations. As the external environment continues to evolve, the compliance team's strategic focus, which I like to refer to as our Strive25, is to continue to build a strong foundation as well as support growth. We cannot support growth without a strong foundation, and the key pillars to a strong foundation are, one, people, and secondly, a strong risk-based compliance program. That is why it's important that we continue to invest in the development of our compliance team, as well as invest in developing and strengthening the elements of our Compliance Program. A great example of this is our governance structure that I just mentioned, where we have four regional compliance committees. One of the formal elements of a compliance program is governance, and this is a way that we've matured our Compliance Program over time. Shifting to the other side of the wheel, for growth, empowering employees is really about utilizing interactive learning strategies to connect more with learners and give them the information that they need to be successful at their job. Examples of this could be podcasts or newsletters. When we think about supporting innovation and growth, a great example of this is our recent acquisition of Atos Medical and transitioning that organization into the Coloplast family. Another example are different third-party engagements like our Coloplast Professional platform. Then lastly, driving operational excellence is really about integrating compliance controls into our operational processes that exist today through all the day-to-day compliance advising that compliance does. Compliance operates best when compliance is the way we work. It's integrated into operations. It's not something separate. Across this, the various requirements, and the work there is to do, it may beg the question, how do we manage this? How do we assess, and know whether our Compliance Program is maturing over time? The way in which we do this is we have a compliance framework that lays out elements of our program, and in some governments across the world, we're required to have those. We use this to monitor our progress over time, as well as to help guide our priorities and focus areas. On this screen, you can see the elements of our Compliance Program, and they really operate like a continual wheel informing each other. When we think about auditing and monitoring, as an example, outputs of auditing and monitoring activity inform elements like standards of conduct or education, because we may need to update a policy or a process or enhance some of our training. In addition, another great example is reporting and investigating, where outputs of our Ethics Hotline investigations are reported to our four regional compliance committees as well as the audit committee, linking reporting and investigations to governance. All of the work that the compliance team does is linked to one, if not multiple, of these elements. As you saw on the previous slide, one of the elements of our Compliance Program is investigations and reporting. Coloplast has an Ethics Hotline that's managed by an independent third party, where employees or other stakeholders can report suspected breaches of our code of conduct or other concerns. Cases reported to the Ethics Hotline are managed in accordance with Coloplast's Ethics Hotline management policy, which requires day-to-day oversight by our Ethics Hotline committee, as well as quarterly reporting to the audit committee. Though we see a variety of cases come in across the globe, when you look at the industry at large, there are common themes that the industry experiences in different regions. As an example, in South America, common types of cases in the industry may be related to conflict of interest or third-party risk, whereas when you look at the industry and enforcement trends in region North America, common types of cases relate to engagements with healthcare professionals. Lastly, you can see on this slide the benchmark case volumes. You'll see Coloplast's average case volume per 1,000 employees compared to the Denmark C25, as well as to our multinational peers. You will see that Coloplast falls in between the Denmark C25 and our multinational peers. We're comfortable with the level of our case volume and expect that over time, as our Compliance Program continues to grow and evolve and Coloplast as an organization continues to grow, that our overall case benchmark value will become closer to our multinational peers. This slide, there's a couple key takeaways on this slide that I would like to address. One, you can see that in fiscal year 2021, we had 61 Ethics Hotline cases, a noticeable difference from fiscal year 2020. The reason for this difference was COVID-19. There are also a couple of key KPIs that we look at on this slide to help guide the further development and strengthening of our Compliance Program, as well as monitor the culture of compliance at the organization. One of those is looking at in-scope versus out-of-scope. When you see the in-scope versus out-of-scope and you look at is your out-of-scope cases that are being reported growing, that can be an indicator that maybe there's an educational opportunity at the organization to educate employees on what concerns or issues should be raised. When we shift to the other side of the slide, looking at case intake, there's a couple key things we look at. One of them is line management. Line management is referring to when cases are reported directly to an employee's manager, to people and culture, to legal or compliance, instead of going directly to the ethics hotline. In these cases, those cases are still entered into our ethics hotline system, but they come in a different avenue. This is really helpful in judging the culture of compliance at our organization because when employees come forward and make their concerns known and make themselves known in the process, they feel comfortable that their concerns will be addressed, and they're not fearful of retaliation. When we see the line management bar grow, that's a very positive sign of the culture of compliance at the organization. Lastly, the monitoring bar. Monitoring refers to cases that we identify internally through proactive auditing and monitoring exercises. You may recall that auditing and monitoring is one of the formal elements of our Compliance Program. When we're able to identify issues internally through this activity, it helps us mitigate risks before they materialize and also take advantages of opportunities to do better. Another key area of the compliance program and compliance framework is data privacy. We have a lot of initiatives going on where we're pursuing online activity more as an organization, and through this, Coloplast is handling and collecting more personal data. Users trust us with information about their personal life, and we take that commitment very seriously and want to respect that data as well as treat it very confidentially. It's important with this ever-changing landscape that we have controls in place, including policies, governance, processes in place to manage the changing requirements, because we do see the data privacy landscape evolving with new laws coming up across the globe, including a recent new law in China, as well as Brazil. There are a number of processes and controls that we specifically have in place related to data use to ensure that we are complying with the various requirements we need to adhere to across the globe. A good example of this is our privacy agreements. We have business associate agreements or data protection agreements that lay out terms that we adhere to and agree to with various parties. Another example is user consents and our consent management framework for the consents we obtain for those who own that data and how we can use it. Lastly, processes we have established with third parties that we are engaging with to ensure they are compliant from a data privacy perspective. A good example of this is our data privacy and information security supplier assessment. Finally, we have a group of very talented privacy professionals that manage our privacy agenda, build controls, and integrate our privacy structure into the overall Business Ethics and Compliance Program at Coloplast. This initiative is led by our group data protection officer, who reports annually to the Audit Committee. We also have a data privacy board that meets to review impacts of changing legislation as well as priorities and what different controls do we need to prioritize and put in place to ensure that we can continue to deliver top services as well as meet the requirements we need to from a compliance perspective. Now René is going to speak with you about information security. Good afternoon, and welcome to this last session of the day. My name is René Rasmussen, and I'm the CIO and Senior Vice President for Information Technologies here at Coloplast. Information technology is a global function with approximately 300 employees that are spread across 17 countries in the group. Based on our Strive25 strategy, we in Information Security and Information Technologies work with three focus themes: digital growth foundation, unparalleled efficiency, and standardized, scalable, and secure IT. It is this last part that I'm here today to speak towards in the area of information security. Let's in that context start with having a look at the external threat landscape and how this has evolved. Again, this year, we are seeing overall increase in all areas. What is worth noting is that the intensity and scale of threats is at an all-time high. I would like to highlight two things that stand out. More complex and targeted attacks with higher skill levels from the attackers, in particular the so-called supply chain attacks, targeting trusted vendors and their software. A well-known example of this is the SolarWinds Orion attack that affected many companies in 2021. The attackers used this to implement malware or ransomware and combined it with stealing personal data to create what you could call a double whammy, so creating two blackmail points against the company. The second element is with the COVID pandemic. Data is now much more on end-user devices and in private homes, thus requiring a much greater focus to secure and control these at the edge, as these are increasingly being targeted for compromise to get hold of sensitive data. If we then turn from this general picture to a more industry trend, where Coloplast actually needs to relate to two different ones, healthcare and manufacturing. For those two industries, we are beginning to see a greater convergence in the threat picture, where the most significant is that the threat is financially motivated and the single biggest risk is that an attack is an attack that manages to introduce a ransomware attack combined with the extraction of sensitive or personal data committed by organized cybercrime groups like REvil or DarkSide. We have seen several significant examples of this over the last year. For example, Acer, Colonial Pipeline, JBS Foods, Ireland's health service, Brenntag, Accenture, and the list goes on. Ransoms have, in some cases, also been paid for this data. If we turn towards the differences in this, then we can confirm that the approach that we have taken, where the great focus on education and training of our employees on how to act in the digital space, is so essential. There is a need to avoid mistakes, especially when exposed to these socially engineered attacks, that is a favorite of these groups. For Coloplast, that means three key takeaways. One, ransomware is the single biggest risk to guard against. Two, internal awareness and education is essential to guard against data breaches. Three, personal data has become the new hard currency for cybercriminals. Let's now turn towards how Coloplast is addressing this. Over the last five to seven years, we have made significant investments and changes to improve our information security setup, and I would like to highlight two noteworthy governance examples of this. The first one is the anchoring of the oversight, where both Board of Directors as well as the Audit Committee are engaged in the prioritization of the efforts within Information Security, and have been for some years now. The second is the build-out of our internal capabilities on the operational level for both Information Security Risk Management, as well as the technical controls and monitoring of our ability to detect, respond, and recover. This is, of course, also enhanced with help from external vendors. Looking at how this is then applied to our risk management framework and how we work with this on an everyday basis. We work with Information Security based on this risk management framework. Here, the focus is on four distinct but interrelated areas that we believe are essential to succeed. At the outset, we'll look at threats. This ensures our ability to detect, respond, and recover, and is continuously built out. An apt example here is the current conflict between Ukraine and Russia. As this started to escalate approximately six weeks ago, the team established which measures were relevant to implement dependent on the development in the situation. This meant that we were able to implement and advise the organization as the situation escalated and the cyber war component increased, which also meant that we needed to take actions to protect our assets, not only in Ukraine, but also in Russia. The involvement of several independent groups unfortunately meant that risk of spillover attacks just has increased since then. Turning towards compliance of regulations, this is how we ensure that we stay aligned to relevant regulations and laws, and our focus here is, of course, on an information security point of view and on the alignment towards the ISO 27001 certification. By using this across all of Coloplast, thus we ensure both good practices as well as a standardized global approach within this area, where we also have a high focus on addressing data privacy in an information security context. Thirdly, we have a high focus on business interactions and relations. There is an even greater dependency on the end-to-end perspective these days, especially when looking at Information Security. A key initiative here is working with supplier and vendor due diligence, not least as the increase in supply chain attacks is taking place. We are not stronger than the weakest link in the chain that we are in, and so this will continue to be a high focus area throughout this period. Finally, there is the work around conduct. People are our greatest resource, but they are also, in many aspects, the link that is being targeted. This means it is essential to make sure to build out the right awareness and understanding of these concepts. Fortunately, we are seeing that this has also become much more interesting for the wider public and for the employees as this area becomes even more well-known. We work consciously with these four areas and the different aspects of risk management framework to ensure that we address the right risks and measures to stay secure. All of this can be summarized into our overall position for the information security area, which is to protect Coloplast from external and internal threats with the outset in a risk-based approach and the objective of delivering standardized, scalable, and secure information technology. Thank you very much for your attention. With this, I would like to wish you a good afternoon, and we will return shortly with Megan and I for a Q&A session. Hi, everyone, and welcome to the second Q&A session today. I'm Aleksandra, part of the Coloplast Investor Relations team, and here with me I have Megan and René to answer your questions. Welcome, both. I can see that there are no questions currently from the line. Feel free to, of course, dial in and ask your questions. Otherwise we will start with the chat because here we already have a couple of questions for the two of you. I would start with René. A very current topic. Has the current war in Ukraine resulted in increased cyber threats and an increase in the incidence of cyber attacks? There's no doubt that the war between Russia and Ukraine has heightened the risk that there is for a spillover attack, for example, towards Coloplast and others. The risk is higher. That there's no doubt about. Whether or not we are seeing any increase in attacks or incidents is actually not the case. We are not currently seeing any neither smaller or larger increase in this. But I'm sure that you are all aware that with the cyber war that is taking place between these two countries and with the anonymous groups or the different state groups that are engaged on both sides, I think this situation will just escalate and I think the worst is potentially yet to come. We need to stay diligent, and we need to continuously monitor the situation and build out any aspects of measures that we can do towards this. Great. Thank you very much, René, for that. The next question is for you, Megan. Ethics and compliance. Coloplast has much fewer compliance cases compared to the industry. Do you see this as a sign of strong internal controls or that cases are simply not being flagged? Good question. We have a lot of work we're doing at the organization to further strengthen and build our Compliance Program. We're also on a growth journey as an organization, and when we look at our benchmark numbers, we're performing well right now, you know, and we're in between the benchmark for the C25 and the multinational. As we continue to grow as a company and grow our Compliance Program over time, we anticipate that number continuing to move closer to the multinational benchmark. Yes. Thank you very much, Megan. The next question is for René. You only have around 2% of your employees working in IT. Is this enough to meet your digital transformation efforts, the increasing focus on direct to consumer, and the magnified threat of cyber attacks? It is true that it is around a couple of percent. We do have additional employees working with our digital transformation in other parts of the company, for example, within our innovation unit. There is more people also engaged in this area in other aspects of the company. What about external parties, René? You work also with externals on this topic. Yes. On the, is this in the information security sense? Yes, we work with a number of different vendors and also consultancies to assist us both in the technology sense, but also in the day-to-day operations of the information security area as well as on incident response and incident detection. We have a wide net that we can be assisted from, aside from the investments that we have made in our internal organization also. Because I do believe, and we do believe here in Coloplast, that it's essential that you also have some in-house knowledge that you can apply to, especially towards such an important area as information security. Of course it is very difficult also these days to maintain that skill level, which is constantly evolving in the outside world, so you need to have a combination of both internal and external capabilities at hand if you should have an incident or even on a day-to-day basis. Great. Thank you, René. The next question comes again to you, Megan. Regarding compliance, can you talk about the size of the current Coloplast Compliance staff, and on how this has developed over recent years, and how it will continue or it will grow in the coming years? Yeah. One of the things I like most about my job is our Compliance team. It's one of the most diverse, talented teams I've had the opportunity to work on and with. We have around 20 directly reporting in compliance professionals, and then a handful of indirectly supporting resources across the globe that help guide, develop, mature our Compliance Program. Over the recent years, we have seen growth in our Compliance Program personnel, adding various resources across the key regions, Europe, you know, North America and Asia, as well as at headquarters. I anticipate as we grow as a company, that we'll continue to see some additional growth in our Compliance Program personnel. Great. Thanks, Megan. There's one question that I'll take actually. It says the executive management group is incentivized on, number one, organic growth, number two, profitability, and number three, ESG. What is the weight put on each of these three components? The weight here is 45% on organic growth, 45% on profitability, and then 10% on an ESG related KPI. Moving on, one for you, Megan, again. Can emerging data privacy laws become a barrier for launching new digital products, such as the digital ostomy tool? They definitely can, and that is where making sure we have the right structure in place, both from policies, governance, processes to track what's the evolving landscape, what laws are changing, where are they changing, what new laws are coming about, like a recent new privacy law in China. Ensuring that we have those controls in place, as well as strong partnership with key areas throughout the organization, like our consumer digital team and other stakeholders, is critical in being able to collaborate and understand what's our long-term roadmap from a business perspective, and then how can we collaborate together to overcome that. They definitely can, but with the structure we have in place and with strong collaboration, that can be avoided or worked to minimize those impacts on our agenda. Thanks, Megan. Next one for you, René, on cybersecurity. Is it Coloplast corporate policy to never pay ransom blackmail? We as an outset do not intend to pay a ransom. We believe that the measures we have are adequate and that we can work within the frame that we have. We do not expect or want to pay a ransom. We think that it is not the right way to go. Thank you, René. One more for you, Megan. What are the most difficult types of cases that are being reported to the Ethics Hotline? Good question. When we look at the industry at large, in the multinational medical device industry, there's really common cases that companies experience across the globe. Examples of those common cases are conflict of interest, corruption and inducement, transparency reporting, contract management, and a number of other categories. Coloplast is no different from the industry at large. Thanks, Megan. One more for you, René. Do you work with external vendors to stage attacks to test the robustness of your information security setup? Good question. Yes, we certainly do. We both test our defenses as well as stage and try out what's called a red team attacks. We think that this, of course, both tests our technical, but even more importantly, it tests our processes and procedures and protocols for responding correctly if we are having an incident. Yes, for sure we do. Thank you, René. One final question I think in the last few seconds. Ethics and Compliance. Coloplast has much fewer compliance cases compared to the industry. I think we already actually answered this one. Do you see this as a sign of strong internal controls or that cases are simply not being flagged? I think as I noted, we definitely see our case volume moving in the direction of the multinational benchmark. Over time, as our Compliance Program grows and as we grow as a company, we should see more alignment there. Perfect. Thank you very much, both. With this is the end of the second Q&A session. I will leave it up to Ellen for some closing remarks. Thank you. Thank you. Thank you, Aleksandra. Thank you, René and Megan for a great Q&A session. Before we wrap up today, I would just like to say thank you to all the participants who have joined the event today and asked great questions. Hopefully today's event has given you some more insight into the sustainability strategy at Coloplast and all the efforts that are ongoing across the organization. All participants will receive an email shortly after this event, where we're asking you for some feedback. Please take a few minutes to answer the survey. If you have any other questions, do not hesitate to reach out to the Investor Relations team. With that, I'd like to say thank you for today and have a lovely evening. Bye-bye.