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Treasuries have taken a lot of flak from Wall Street in recent years, because they stopped behaving like a safe haven. It's time to show some respect again.
A major US-Israel coordinated attack on Iran is expected to drive short-term oil prices up 5-10%. I anticipate global equities to fall 1-2% and cryptocurrencies to drop 3-10% in the immediate aftermath of the conflict escalation.
Operation Epic Fury against Iran may not trigger worst-case scenarios for oil or markets if energy supplies remain stable. Initial Iranian retaliation appears limited; oil price spikes hinge on potential disruptions to the Strait of Hormuz or Kharg Island.
The U.S. and Israeli strikes on Iran Saturday may jolt oil markets on Sunday evening. They could also dim the odds of Federal Reserve rate cuts this year.
Edwin Ng: We will start our session now. Good morning, everyone. Thank you for joining our fourth quarter FY 2025 analyst briefing. A very warm welcome to our Yang Berbahagia Datuk Ir. Megat Jalaluddin Bin Megat Hassan, President and Chief Executive Officer of Tenaga Nasional Berhad; our Chief Financial Officer, Mr. Badrulhisyam bin Fauzi. I also extend a very warm welcome to each and every one of you joining us here today in this call. We also have 27 attendees joining us virtually via Webex. Today's session will be covered in 2 parts. Firstly, our CEO, Datuk Megat, will provide an overview of TNB's group strategy and outlook, followed by secondly, our CFO, Mr. Badrul, will present TNB's fourth quarter FY 2025 performance. We will then open for Q&A before we end it at 12:00 p.m. With that, I'm pleased to invite Datuk Ir. Megat Jalaluddin Megat Hassan to kick off our session for today. Thank you. Megat Bin Megat Hassan: Thank you, Edwin. [Foreign Language] and a very good morning to everyone. Once again, thank you for joining us today in this analyst briefing for the financial results 2025 for Tenaga Nasional. For mostly my analysts, I would like to say [Foreign Language] and hopefully, this Ramadan will be better compared to the previous Ramadan. So coming back to the performance of Tenaga Nasional, I'm pleased to share some of the key highlights for the financial year 2025. Despite a year of both challenges and opportunities, TNB delivered resilient performance in 2025, recording a core profit adjusted for forex translation and MFRS 16 of equivalent to MYR 4.8 billion compared to around MYR 4.2 billion in financial year 2024, reflecting the underlying strength of our core business and the effectiveness of our ongoing initiative to drive efficiency and sustainable growth. This positive business growth has allowed us to continue to reward our shareholders at the higher end of our dividend policy, dividend payout of 65.6% equivalent to a total dividend of MYR 0.53 per share for the year 2025. The stronger financial 2025 performance was driven by improved performance across all our 4 business pillars. The first pillar is under generation as part of our strategy to deliver clean generation. Genco performance improved to the expectations based on the turnaround program that we conducted over the last 2 years with higher core PAT of MYR 315 million. This was supported by stronger operational efficiency as reflected by an improved equivalent availability factor of 87.8%, competitively close to the max that we want to target. Second, under develop energy network, we deployed MYR 12 billion in regulated CapEx comprises of MYR 10.3 billion in base CapEx, and we have started to use the portion of the contingency CapEx of MYR 1.7 billion. This intensified investment have strengthened grid resilience, supporting the demand growth for the country and facilitated renewable energy integration under RP4. Third, under dynamic energy solution, looking at the customer space for the year 2025, there are now 5,719 EV charge points in the ecosystem, contributing to MYR 7.1 million in revenue. During the year, at the same time, Tenaga Nasional through Electron brands installed 119 new TNB charge points, bringing the total cumulative for TNB Electron of 256 TNB charge points in our EV network. This is to reinforce our commitment and our belief to support the country growing EV infrastructure. This is also being seen by the increase of the registration of the EV cars in the market, and it is driven primarily by Proton. As for data centers, we have 35 projects in the system with a total maximum demand of 4.5 gigawatts, the agreed ESA of 4.5 gigawatts, contributing to 148% growth year-on-year. In addition, we recorded the highest customer satisfaction index in TNB history with a score of 90% or 9 out of 10. This was largely driven by the improved residential sentiment following the new tariff structure that is being introduced by the government and also the operational efficiency with fewer repetitive complaints and outage-related calls. So this is one area that we are happy most because on top of the business performance, we are also getting the good feedback from our customers with respect to our services. Lastly, under driving regulatory evolution, the IBR framework remained upheld, providing earnings stability and regulatory clarity. Importantly, we have secured revenue recognition for contingent CapEx similar as base CapEx, allowing us to recognize revenue in the same year the expenditure is incurred effective from 2025. So this is part of the agreement that we have with the Energy Commission and how the recognition of the contingent CapEx should be done. So this reduced regulatory lags and enhance our earnings visibility. The strengthened AFA mechanism, which was introduced recently, enable more immediate cost recovery from 6 months to 1 month, improving the cash flow of Tenaga and the working capital efficiency. Throughout the period, we also see that the -- most of the AFA mechanism is actually on the negative, which is a reflection of the tariff structure that we currently have. Further, this enhancement reinforce the resilience of our regulated business and support sustainable shareholder return. Following our resilient financial performance, strong governance and ESG discipline remain fundamental enablers of sustainable value creation. In other words, apart from business performance, we look at how Tenaga Nasional as a company address our sustainability agenda. In financial year 2025, TNB was recognized at the National Corporate Governance and Sustainability Award 2025, where we received the Overall Excellence Award, placing us, TNB, among the top 10 companies as well as the Industry Excellence Award in the utilities category. This recognition reflects the strength of our governance framework and our continued commitment to transparency, accountability and responsible leadership. From a broader reputational perspective, our corporate reputation index improved to 88% compared to 80% previously, indicating strengthening of stakeholder confidence to Tenaga Nasional. As disclosed in last quarter, Brand Finance ranked TNB as second strongest utility brand globally with a AAA brand strength rating, underscoring the resilience of our brand and the credibility of our long-term strategy, especially in this energy transition environment. In addition, we were honored at The Edge Billion Ringgit Club Awards 2025, receiving recognition for delivering the highest return to shareholders over the 3-year period in the super cap category. This reinforced our disciplined capital management and our focus on sustainable shareholder value. Beyond this recognition, we have also recorded notable improvement in our ESG performance. We improved our FTSE4Good score from 3 star to 4 star, and 4 star is actually the highest ranking in the FTSE4Good, which is recognized by Bursa Malaysia. Our FTSE Russell rating improved to 4 from 3.5 previously. Our Sustainalytics risk score improved to 26.3 transitioning from high risk to medium risk. And we also maintained our MSCI rating of A and our CDP rating of C. This improvement reflects the consistency of our governance practices, disciplined execution of our energy transition and a strengthened risk management framework. Moving on to our key achievements across the 3 strategic pillars in 2025. I would like to share that under Deliver Clean generation, we made a solid progress across gas, solar and battery storage. For gas under RFP Category 2, new generation capacity, we ordered with 1,400 for the new Paka combined gas cycle -- combined cycle gas turbine power plant with a target COD by December 2028. This represents a significant milestone for Tenaga to strengthen the Malaysia medium-term security of supply and reflect the competitiveness of the generation electricity price that TNB as the leading energy company can offer to the Malaysian market. As previously announced in quarter 3 results, we also secured extension under Category 1 totaling 1,262 megawatts across 3 gas power stations, reinforcing system reliability for the country. So we are very positive with respect to the pipeline growth of generation sector, while we address the supply and demand for the country. Under battery storage, the battery energy storage system at Lahad Datu, Sabah in which Tenaga Nasional has a stake in it was successfully achieved COD in August 2025, strengthening the grid stability and supporting the renewable integration for the Sabah grid. Moving on to the land-based solar. First, the large-scale Solar 5 project, LLS Sabah, commenced construction in November 2025. And as far as the planned COD, it is very much on time. Under the Corporate Green Power Programme, CGPP, all 3 sites that are under construction are progressing well at about 95% completion and remain on track to achieve COD in this first quarter 2026. And finally, for the centralized solar park, we have signed principal terms of bilateral energy supply agreement with one of the leading data centers in the country, DayOne Data Center, a strong indicator of growing green energy demand, both from corporate customers. And this is also enabling the CRESS system for Tenaga. And lastly, under hydro, the Nenggiri hydro project reached 88% (sic) [ 68% ] completion, including the installation of 400-tonne overhead crane, the largest capacity electric overhead traveling crane. The Sungai Perak Hydro Life Extension Programme has achieved 28% overall progress with major refurbishment work completed. For the Kenyir hybrid hydro floating solar project, we have reached 70% of predevelopment completion and successfully concluded the EPCC tender evaluation. So once again, we are also seeing that as far as the [ domestic ] generation on the RE front, everything are going as planned. While we continue to strengthen our domestic portfolio, we continue to advance our international energy pipeline and expand our global footprint, particularly in the United Kingdom and Australia. I'm glad to inform that in the United Kingdom, our 102-megawatt solar greenfield development projects at Eastfield equivalent to 35-megawatt peak and Bunkers Hill equivalent to 67-megawatt peak successfully achieved COD in July 2025 and has started the generation of income for Vantage Solar in the U.K. This marks an important milestone as this asset begin contributing to the current international earning base that we already have. In Australia, momentum remain encouraging. There are 3 main projects that we are looking at. The first one is at Dinawan Energy Hub, 1.3 gigawatt development at the border of New South Wales. We were awarded approximately 1 gig access rights while 357-megawatt Dinawan Wind Farm Stage 1 successfully secured the Australian government capacity investment scheme in October 2025, providing revenue visibility and mark the start of the project over there in New South Wales. For Walter Creek solar project equivalent to 700 megawatt -- 710-megawatt development, we have executed connection process agreement with Transgrid, meaning that we are executing the process to be connected to the grid and successfully submitted capacity investment scheme bid to secure the revenue support, meaning that both technical and the commercial front are very much within the progress. Meanwhile, the third site that we are working on at the Mallee Wind Farm, 400 megawatt, we have completed ecology surveys for the alternative connection route and secured the necessary land easement for the interconnection line. This step support the alternative grid connection strategy outside the ROW East zone. Bear in mind that based on our experience, the connectivity for the RE to the grid for this Australian market, it may take some time. But once it is very much connected, then the revenue is also quite consistent and secured. So overall, our international portfolio continues to progress steadily, reinforcing our long-term growth pipeline beyond our Malaysian shore. Next, we move to investment into the grid. Under our second strategic pillar, develop energy transition network, we delivered year 1 RP4 with a disciplined and efficient regulated CapEx deployment. Total regulated CapEx utilization reached MYR 12 billion against the original budget of -- budget plan of MYR 7.8 billion, exceeding 100% of our 2025 target budget. This investment was strategically allocated across 3 priorities. So we invest MYR 5.4 billion to maintain security of supply, MYR 5.3 billion to support demand growth and MYR 1.3 billion for the category of energy transition project. Achievement for the key projects. First, we significantly outperformed our smart meter target, installing over 1 million units in 2025 alone, bringing the total installation to about 5.6 million units, now covering more than half of our customer base. As for distribution automation initiative, we expanded deployment to over 5,100 substations during the year, bringing the total to over 38,000 substations in the system. We have also fully completed 500 kV overhead line Ayer Tawar to Bentong South and Lenggeng project with a total of 854 transmission towers and around 325 kilometers transmission length, reinforcing the backbone of the 500 kV national grid system. Meanwhile, our 100-megawatt 400-megawatt hour battery energy storage system pilot project at Santong is progressing well, reaching 85% completion. The next dimension of our strategy is regional integration. Recently, we signed the Tripartite Energy Wheeling Agreement Phase 2 under the Laos, Thailand, Malaysia, Singapore power integration project or known as LTMS-PIP version 2.0. This marks another important milestone in advancing ASEAN Power Grid and strengthening cross-border energy cooperation. Under this arrangement, Malaysia plays 2 key roles. First, TNB supply RE energy up to 100 megawatts from Laos to Singapore with the single buyer determining and collecting the energy charges. Second, TNB acts as the wheeler transmitting the energy through Peninsula Malaysia to Singapore. For 2025, the total energy export under this arrangement amounted to approximately 10.5 gigawatt hour reinforcing Malaysia's evolving role as the regional energy hub. Complementing this, we have also operationalized Energy Exchange Malaysia ENEGEM with a total energy export of 500.8 gigawatts to Singapore in 2025. This represents a significant national achievement in strengthening Malaysia position as RE leader in Southeast Asia through a transparent and competitive bidding commercial mechanism. Beyond commercial values, this regional interconnection enhances flexibility, supports cross-border RE integration and strengthens long-term energy security across the region. We will continue working closely with our regional partners to deepen cooperation and expand business opportunity under the ASEAN Power Grid framework. Moving to our third strategic pillar, dynamic energy solution. Electricity demands continue to grow resiliently in 2025. Total units sold reached 133,895 gigawatt hour, reflecting a sustained demand momentum. This growth is largely underpinned by commercial sector, which account 38% of the total units sold. Commercial demand grew 10% year-on-year, led primarily by data centers, which contribute 7.1%, followed by subsector of malls, business and accommodation services at 2.4% and other retailer sectors contributing 2.5%. In terms of sales contributions, malls, business and accommodation services made up 80% of the total units sold, other subsectors contributing about 16%, while data centers account for 4% of the total sales in financial year 2025. Having said that, importantly, data center continue to anchor structural demand growth. As for 2025, we have 35 projects in the system with a total maximum demand of around 4.5 gigawatts and cumulative maximum demand in the pipeline of about 7.5 gigawatts, underscoring Malaysia's growing position as digital investment hub. From a load utilization perspective, we reached 850 megawatts in December 2025, reflecting the steady ramp-up of operational facilities for data centers. Overall, demand fundamentals remain strong, supported by structural commercial growth and electrification trend. Alongside the robust demand growth, we're also seeing positive momentum across our customer-focused energy transition initiative, mainly under the EV ecosystem. We continue to expand our charging network with 256 cumulative charge points installed, including adding 190 in the year 2025 alone. Under the Green Lane supply connection initiative for EV charge point operator, progress remains encouraging. To date, we have commissioned approximately 32 megawatts of supply connection and in 2025 alone, completed 110 projects, representing around 14 megawatts of maximum demand. This demonstrates our ability to facilitate expedited connection, particularly for high-growth sector. From a financial perspective, our EV charging ecosystem generated about, as mentioned, MYR 7.1 million in revenue, representing an approximately 88% year-on-year increase in which around MYR 2.7 million come from TNB-owned charge points, reflecting steady adoption and increasing utilization of our infrastructure. Moving to solar rooftop through GSPARX. Since inception in 2019, we have secured 3,125 projects, representing 536 megawatt peak of secured capacity. As of December 2025, we have installed 216 megawatt peak, generating approximately MYR 100 million in revenue for 2025. We continue to see strong participation from key customer segments such as government data centers and construction for the solar rooftop. On energy efficiency, myTNB app is now adapted by more than 8 million customers, representing approximately 75% of our customer base. Of this, more than 2.6 million users have subscribed to myTNB Energy Budget feature, collectively helping to save 106 gigawatt hour of energy and avoid 74,000 equivalent tons of carbon emission as of December 2025. Under the Time of Use scheme or TOU scheme that recently introduced, adoption continued to show encouraging progress. As at December 2025, approximately 102,000 customers are actively benefiting from the scheme by optimizing their electricity usage during off-peak periods. This is further supported by the streamlined application process via myTNB app, which is now available, enabling seamless participation and a greater customer accessibility. Overall, these initiatives support cost optimization for the customers while enhancing load management and overall system efficiency. We believe that TOU scheme will be a hit among our customers in time to come. With that, I will now pass to our CFO, Encik Badrul, to provide a detailed overview of our financial year 2025 financial performance. Please, Badrul. Badrulhisyam bin Fauzi: Thank you, Datuk, and good morning, everyone. So good to see so many of you this morning, and we have now close to 60 people online as well. So I hope you're happy with the numbers that you have seen so far. All right. So let me start by saying that our performance this year, we are showing stronger financial performance. But most importantly, this is actually driven by regulated business as well as effective capital management. So if you look at across the 3 financial metrics, revenue, EBITDA and PAT, all 3 across the line are showing positive year-on-year growth. And for revenue, specifically for 2025, actually increased by 19.4% compared to previous year, mainly driven by higher electricity sales. So implementation of cost reflective RP4 approved tariff actually is supporting our revenue and demonstrating continued stability of our regulated business. But most importantly, if you look at EBITDA, EBITDA has improved, supported, of course, by the higher revenue, but EBITDA increased around 2.8% year-on-year to MYR 20.5 billion already this year. And most importantly, EBITDA margin actually strengthened a little bit to 31.6%. Obviously, this is showing improved efficiency as well as operational improvement that we are pursuing across the company. So to us, this is important because it shows that all our efforts to improve efficiency are continuing to progress. This is, of course, paired together with cost management as well as strong operational improvement as well. So this brings us to the profit line where the profit grew mainly because of stable operational performance as well as all these cost improvement initiatives that we have actually put into the company. So our core profit, adjusting for forex translation and MFRS 16 stood at MYR 4 769 billion So that is a 14.7% increase year-on-year compared to MYR 4.157 billion in the same period last year. So based on that, I think it's quite clear that if you look at our overall performance, operational performance is being supported as well by lower net finance costs as well as forex movement, which has actually provided additional uplift to our numbers. However, most importantly, core operation remained the main driver of our performance for 2025. So with that, the numbers for 2025, obviously, is on track for us to continue growing, supported by resilient operations and prudent financial management to make sure that we continue to deliver this sustainable performance, not just for '25, but for the many years going ahead for the next many years. So next one, I think you will be able to see that our group earnings is supported by 2 important factors. The first one is improved generation performance as well as, of course, our world-class network performance. So if you dive into more detail, the group earnings are contributed by solid technical performance, which is now supported by much improved plant performance and world-class network performance across, of course, our transmission and distribution system. So as far as generation is concerned, the EAF at 87.8% in 2025 is a marked improvement compared to 83% that we recorded same period last year. So again, this improvement really reflects the overall plant performance improvement because of the turnaround initiative that we have put in place and starting to bear fruit now. So this is something that is very close to our heart. Definitely, we remain committed to maintain this high availability as well as operational excellence to make sure continued financial performance across Genco. In our transmission, our system minutes for 2025 is at 0.15 minutes, which is well below even our own internal threshold of actually 1.5 minutes. This, again, underscores our continued performance to make sure that we have a highly reliable as well as stable transmission network. So on the distribution side, SAIDI for 2025 improved to 46.93 minutes, again, well below our internal threshold of 48 minutes. So this is important because the strength of our world-class network continues to safeguard the earnings of our regulated business, but most importantly, as well ensuring better services for our consumers. That's how we have been able to achieve just now customer satisfaction score of 9 out of 10. So it is now being demonstrated not just on the network side, but also being felt by our customers as well. So if we move along on the capital management side, you'll be able to see that stronger collection has actually reduced receivables on our book. And we have also demonstrated in 2025 that we have optimized capital deployment to make sure that we have a healthier cash flow position. So if you look at our trade receivables, it started the year at MYR 4.4 billion, and we ended the year actually at MYR 3.9 billion. So for those who have been tracking us for a long time, you have not seen a figure below MYR 4 billion for quite a while. So this is something that we are very proud of. And the fact that we have also improved the collection period beginning of the year at around 25, we are now ending the year with 23 days as of December. So when we drill down further into what we have actually achieved, of course, there are reasonable explanation for this. This is the outcome of what we are putting in place and collection, in particular, has been identified actually the outcomes of 3 main initiatives that we are putting in place. The first one is the fact that we have now established a dedicated task force for our high-voltage and medium-voltage customers with dedicated personalized account manager to actually make sure that they are taken care of for all their needs. But of course, most importantly, they must also pay their bills, right? So that's why as part of the overall process, they now become a lot more personalized customer. So this is our value add to our customers. Second one, over the years, we have also -- and this year intensified our push to promote our customer to move into payment channel of direct debit. So this will make sure that, obviously, on time, the payments are made. So that's helped push the collection into much better territories. And lastly, item #3 to all of us here. Datuk mentioned just now, we have 8 million customers on myTNB app. We need to check all your phones to make sure you are on it. And if you are on it, you will notice actually this year, we have introduced a new function because we have now predue notice of payment. So what we're seeing before this is all of you, we know you want to pay on time, but sometimes life get in the way, you get delayed, you forget about it. That's why you're not paying. So now we're helping you with one more step. We make you predue notice so that you know that we can nudge you to pay on time. So that actually has helped us to make sure that the collection across not just the major customers, but all our accounts become more timely. So most importantly, yes, that's on the receivable and collection side. But if you look at our capital allocation side as well, 2025, we have demonstrated very strong operating cash flow. And this is, of course, the outcome as well from our more optimized capital deployment model. So during the year Datuk Megat mentioned just now, we have deployed close to MYR 15 billion in CapEx, and this is reflecting our continued investment in regulated network expansion, renewable capacity growth as well as system resilience. So this is important because for us, the ability to scale up investment was undertaken while still maintaining a balanced and robust balance sheet position. So at the same time, you will notice that we are actively optimizing our cost of borrowing, where net cost of borrowing actually improved to 4.63% as opposed to 4.83% in 2024. So this reflects a proactive liability management, improved our credit positioning and favorable funding outcome being supported by all the banks working with us. So it is important for us to reiterate the point that, yes, capital allocation is very important to us, and we are making sure that it's balanced to support our growth of investment while preserving our financial flexibility and maintaining balance sheet strength. So if we move along to more detail of RP4 CapEx, you will notice that we continue to have -- continue to deliver robust regulated CapEx spending. And during the year, most importantly as well, we have actually finalized contingent CapEx recognition, which is a key factor that we have been working towards at the end of the year. So just to take a step back, and if you look at our total CapEx under RP4 for '25 to '27, total was supposed to be MYR 42.82 billion, out of which MYR 26.55 billion would be base CapEx and the balance of MYR 16.27 billion being contingent CapEx. Where we stand today, based on the progress of the project and what we know, we believe that we expect to utilize approximately 80% to 85% of the contingent CapEx under the current regulatory period, of course, subject to project approval as well as demand requirements. You will notice that over the last few quarters, that number was 70%. So now it has become clearer to us, we believe that will be around 80% to 85%. And some of the projects, of course, we are exploring as well to expedite or push for other projects to be included inside that. So for FY 2025, we actually achieved regulated CapEx utilization of, as mentioned by Datuk Megat just now MYR 12 billion, out of which MYR 10.3 billion are base CapEx and MYR 1.7 billion contingent CapEx. So this represents around 30% utilization of total RP4 allowed in year 1. And this is important for us because this shows that we have been able to execute this project and scale up our investment. So if you recall, in 2024, the final year of RP3, we delivered CapEx of MYR 8.8 billion. Yes, it's massive, but scaling up from MYR 8.8 billion to MYR 12 billion over 1 year. So that's something that we have demonstrated. So I think this is the part where we want to assure you that as far as the RP4 numbers are concerned, these are real and we are able to operationally execute these investments. So that's why if you look at our CapEx going ahead, we expect that for 2026, that number will be around MYR 13 billion, and that will grow to further to around MYR 15 billion by 2027. So if you do the math, MYR 12 billion in 2025, MYR 13 billion this year, MYR 15 billion next year, that will be around MYR 40 billion. That's because the guidance on the contingent CapEx that we put there, that's around 80% to 85%. But of course, we're not resting on our laurels. I have put there as well those dotted bars to show that there are potentially uplift to that number. If we are able to push for a little bit more approvals on the contingent CapEx and hopefully riding on stronger demand, then subject to regulatory approval, we believe that we should be able to optimize that number to the amount that is being approved under RP4. So I just want to conclude this the fact that, yes, we talk about base and contingent CapEx. And before this, we have not been able to recognize the revenue from contingent CapEx. But now it's very clear in our financial statement, you have seen that whatever contingent CapEx that we spent this year, that is already being recognized in our financial statement in the same year. So it's being treated the same as base CapEx as far as recognition is concerned. So this hopefully has reduced one of your key overhang regulatory concerns. But most importantly, this will enable you to have a clear visibility of our earnings going forward. So for us, regulated CapEx development, we are making sure that those are, of course, in line with the approved allowance. But most importantly, this will support the security of supply and as well as support the demand growth and energy transition initiatives. And before I pass back to Datuk Megat, we have this final slide. Hopefully, you have seen the numbers. So for us, this is a reflection of our ability to continue stable dividend payout and most importantly, reflect our commitment to rewarding our shareholders. Some of the major shareholders' reps are here. Hopefully, you're happy with that. But at the same time, we continue to maintain prudent capital management. So if you look at the philosophy behind our payment this year, you have seen, yes, I've been talking about good performance in 2025. So for us, this is a reflection that we performed better in 2025. So we continue to reward our shareholders better as well. So as far as dividend is concerned, we already paid 25% interim beginning of the year. And now we are declaring a 28th final dividend, bringing the total to MYR 0.53. And if you compare that against the last year's payment of MYR 0.51, and it's also reflecting the trend of our payment, growing the dividend from MYR 0.40 in 2021 to where it is today, MYR 0.53. So total dividend payout this year amount to MYR 3.1 billion, and we are pleased to commit that, yes, you are seeing our dividend policy here, 30% to 60%, which we, of course, will continue honoring. But I think most importantly as well, you should be rest assured that we will try our best to make sure that we sustain the current trend of dividend payment going forward, including for this year. So with that, I'll pass the mic back to Datuk Megat. Thank you, Datuk. Megat Bin Megat Hassan: Thank you very much, CFO, Badrul. So this is Ramadan. I think I'm probably start to lose some of the voices that I have. So pardon me. So looking ahead, the medium- to long-term outlook of Tenaga. At the core of our strategy remains the energy transition journey that we have. As you can see here, our long-term aspiration is clear to achieve net zero emission by 2035, in line with the Malaysia National Energy Transition road map, which target 70% RE capacity by 2050. Realizing this ambition, we require sustained and disciplined investment. So under the regulatory period 4, we have already secured and locked in our CapEx commitment up to 2027, providing visibility and execution certainty for the near term. So this is about the phase of delivery of the regulated CapEx. However, achieving the 70% RE capacity target will require continued acceleration beyond RP4, both in the generation and the grid infrastructure. So towards this objective, I think TNB now is looking forward to what the outlook can be with respect to RP5. So more current to that is to support the current pathway. We are intensifying our efforts across all the 3 business pillars. The first, deliver clean generation. Our priority is to accelerate generation decarbonization in a responsible and structured manner. First, we will decarbonize our thermal fleet through optimization and fuel transition, including fuel coal blending and while maintaining system reliability and security of supply. Second, we will scale RE energy capacity in line with the national energy transition priorities. Renewable expansion remain a core travel towards the 70% RE target by 2050. And we believe the CRESS framework provide those opportunities for a company like Tenaga. Third, we will advance low-carbon technologies to support firm and dispatchable clean power, looking at the latest technology such as hydrogen. And fourth, we will selectively expand our RE portfolio across priority markets with disciplined capital allocation, especially looking at the international expansion, ensuring sustainable return while supporting our decarbonization goal. Moving to our second pillar, develop energy transition network. As RE penetration increases, system complexity will also rise. The grid must therefore evolve to become more flexible, digitalized and decentralized, supported by distributed energy resources or DER environment. We are centering advanced system planning, grid flexibility solution and higher energy storage deployment to safeguard the grid reliability. Regional integration will also play a growing role as we expand cross-border link under APG initiative, positioning Malaysia as the regional hub for Southeast Asia. Ultimately, the grid will evolve from a passive transmission network as we have seen in the past from a carrier into an intelligent, flexible and interconnected platform that enables Malaysia low-carbon transition. And lastly, under dynamic energy solutions, electrification will continue to drive demand growth over the next decade. BEV adoption is expected to increase significantly, boosting electricity demand while supporting national decarbonization target. At the same time, we are building an integrated ecosystem, combining the digital platform, billing solution, rooftop solar, energy storage, green energy offering, which is very much part of the customer domain. At the center of this ecosystem is the empowered customer of the future. We see customers evolving into omnisumers, customers who not only consume electricity, but also generate, store and actively manage their energy usage as part of the whole energy participation for the customer. Through digital platforms such as myTNB and smart metering in which we now want to move further with the next-generation solution for the customer, we are unlocking new growth opportunity while strengthening customer engagement. So please be mindful, there will be a lot more stories with respect to our customer journey in the future. Having outlined our medium- to long-term priorities, let me now turn to the short-term 2026 outlook and targets. In 2026, we will continue to drive disciplined execution across the 3 pillars. So 2026 is the delivery and execution year, accelerating growth while progressing towards our net zero ambition. So part of delivery under clean generation, first is the Nenggiri Hydro project is targeted to reach 93% completion by 2026 and with COD targeted in the second quarter 2024 (sic) [ second quarter 2027 ] . Under the Sungai Perak Hydro Life Extension Programme, we are targeting to sign the new PPA for the Chenderoh unit by the 1st December 2026, meaning the COD will follow suit after the signing of the PPA. The hybrid hydro floating solar at Kenyir is progressing through regulatory approval and finalization of the EPCC award. The Corporate Green Power Programme to achieve COD in first quarter 2026, while the remaining solar and wind projects are targeted to achieve financial close financial investment decision within this year. In addition, we will continue advancing the newly awarded Paka combined cycle gas turbine with financial close targeted by the second quarter of 2026. Under develop energy transition network, we are expected to utilize the base CapEx of around MYR 9.3 billion for the year 2026 with a contingent CapEx of MYR 3.7 billion, a total of about MYR 13 billion, subject to regulatory approval. Execution remains the key. In 2026, we target installation of 1 million smart meters, another 1 million smart meters, distribution automation upgrade of more than 2,000 substations and scheduled to achieve COD for our pilot energy battery storage system at Santong by April this year. We will also continue discussion and settling regional interconnection under the ASEAN Power Grid with estimated 625 megawatts of ongoing available capacity for energy trading. Under dynamic energy solutions, our 2026 focus is clear: To scale electrification, expand customer solution and capture sustainable growth opportunities. So first, under EV, we aim to deploy additional 250 charge points in 2026, further expanding the EV ecosystem. Secondly, to support the industry, we target to commission 28 megawatts of completed connections, supported by the 461 applications in pre-consultation, representing 128 megawatts of potential demand for 2026. Cumulatively, connected capacity is estimated to increase 3.3x, and it is projected to reach 60 megawatts by the year 2026. So 60 megawatts is now the expected target, and it is almost the size of a single machine as far as generation is concerned. Through GSPARX, we aim to secure additional 100-megawatt peak of capacity on a yearly basis. And under energy efficiency, we want to continue to scale digital engagement and solution via myTNB platform with the strong adoption of energy budget, and we're also targeting another 150,000 to 200,000 new customers application to TOU scheme, reinforcing our smart meter installation and providing the customer with the empowerment of their energy usage. Overall, this initiative enhance customer stickiness and position TNB to capture growth from electrification and energy transition. So looking forward for 2026 guidance, we anticipate the projected electricity demand remain in line with the GDP growth between 4% to 4.5%. So in terms of our group CapEx, we plan to invest a total of MYR 18 million (sic) [ MYR 18 billion ] this year, approximately MYR 13 billion from the regulated business and another MYR 5 billion on the nonregulated business for the projects that we have described above. Our investment remain aligned with national priorities, strengthening the grid, supporting demand growth and accelerating Malaysia's energy transition. We remain committed to delivering projects that drive growth and sustainable return. This is where our capital allocation, once again, will play a vital role with respect to TNB growth. At the same time, we maintain prudent capital management and optimize our capital structure through disciplined funding strategies, which I believe as well as the KPI for the CFO in 2026. Delivering value to our shareholders. As mentioned and reiterated many times by CFO in his presentation, we expect to sustain our current trend of dividend payment in line with our dividend policy, whereby in the past, historically, we would like to deliver at the upper hand or at the upper range of the dividend policy that we have established 10 years ago, of course, subject to the performance and financial situation of Tenaga Nasional. On sustainable growth, ultimately, our focus on ensuring business growth while supporting Malaysia and NETR aspiration and strengthening our position as a leading provider of sustainable energy solutions. We will continue to position TNB as a leading provider of sustainable and reliable energy solution, creating value for our customers, communities, shareholders and not to forget our employees. Edwin Ng: Thank you, Datuk Megat and Mr. Badrul for your presentations just now. Let us now transition to the Q&A session. We will begin by taking questions from the floor before we allow participants from Webex to ask their questions. With that, I open the floor for questions. Please feel free to raise your hand and our staff will pass you the microphone so that you can ask your questions. Kindly introduce yourself and share your questions. Megat Bin Megat Hassan: I hope everybody will be easy on us this morning since it is Ramadan. Daniel Wong: Daniel from Hong Leong. I have 2 questions. Firstly is on the contingent CapEx. You mentioned just now you guys start to recognize this revenue on the contingent CapEx. Just want to know what is the mechanism for this contingent CapEx, the return? And then from where do you get this revenue from the specific commercial users or from overall public spread over? Second question is on the tax. Can you give us an update on what are we expecting on the tax? How much you can claim? And then over how many years can you use on the ITA or this? Megat Bin Megat Hassan: Okay. I'll give a try for the first question. So maybe CFO can add. So with respect to the contingent CapEx, as mentioned, we understand that what we are now going to deliver is actually a combination of base and contingent CapEx. So what is important for us is that we have gotten some approval for the contingent CapEx. So meaning that we can start the using the contingent CapEx even in the first year of the implementation, whereas the expectation will be that in the third year of the implementation, this is where the contingent CapEx will be heavily used and progressively we want to deliver the base CapEx on a yearly basis. But definitely, the contingent CapEx is supposed to be or planned to be heavy in the third year. So the good thing is that the revenue recognition is actually being -- we can recognize it as we use it in the similar concept as the base CapEx. So with that, the meaning is that the base and the contingent CapEx, one approval is gotten, it actually can be implemented in any year at any time with a consistent revenue recognition. So what will be the return for this contingent CapEx? It is the same as the base CapEx, which is at 7.3%. Maybe CFO, do you want to add that? Badrulhisyam bin Fauzi: Maybe if I just want to add is the fact that Daniel was asking whether it's specific revenue, it's not. Actually, base and contingent CapEx are considered the same as regulated asset base. So the return are looked at as overall. So it's just by the name of it in terms of approval of the project is either base or contingent. You will recall that when we talked about contingent CapEx in the past, we list around 90-plus projects with specific projects preapproved. But of course, there is a process where before we implement it, we need to get it approved so that we can recognize the revenue recognition. But it's the same thing. That's why we keep reiterating that base and contingent CapEx differs only on the approval process. As far as the return, it's the same 7.3% and revenue is the entire regulated asset base overall. So we don't differentiate between the 2. And Datuk, do you want to take the second question as well? Megat Bin Megat Hassan: We will start to give some answers and CFO can elaborate further because it's all the numbers game, right? So I think with respect to the tax issue that was overhang for probably a number of years, more than 20 years, I think the position of Tenaga, first, I think we are glad that this overhang has been removed with the key decisions. So the key decisions that, yes, we received a fair and reasonable portion of the requested amount of the request for the tax, what was it, incentive. But at the same time, at this moment in time, we are not at the liberty to disclose specifically the numbers. So nevertheless, I think the investment allowance credit as we understand it, which is the reasonable portion that we have gotten will be utilized and spread over a similar period of the tax allowance assessment. So that is the concept that we printed. And if you probably look at the numbers in the financial statement, probably that will become visible. Badrulhisyam bin Fauzi: I think that covered it all already. I think if anything, just you would notice that in third quarter, we guided that our effective tax rate would be high. At that time, it was at 29%. And we did say we are managing everything that we can, and we were guiding you that we will end up probably somewhere around 26%, 27%. But you have seen the number yesterday, effective tax rate would be around 22.8%. So that explained in itself how much we have utilized this year. And you obviously I'm sure that we are utilizing it. But as mentioned earlier, the incentive is no longer tied to future CapEx, but the CapEx that we have done in the past, but there are conditions for us before we can utilize it. So that's why we are only able to utilize whatever that is being utilized for the year that is being reported. That's probably as much as we can say. Lee Chong: Lee Len from UOB. Sorry, Badrul, to put you on a spot. But does it mean that the adjustments for ETR will only be done in every fourth quarter? Or how should we look at this? Badrulhisyam bin Fauzi: Yes. We don't adjust PTR, Lee Len, to begin with, obviously, it's the outcome of the bottom-up tax payable across the group. But in the 2025, we only got the approval in November last year. So that's why at that time, we said we were still finalizing the impact of the assessment. So that's why in quarter 4, tax is payable once a year only. So that's why by the end of quarter 4, we finalized the calculation for the full year. So going forward, obviously, we will be accruing and estimating the amount so that it will be spread out in the more stable numbers across the quarters. So it will not be year-end a bigger impact like this. Lee Chong: Yes, that will be much better. Maybe just another question for me. Are there any low-hanging fruits when it comes to cost discipline? I mean EBITDA margin looks really healthy. How should we look at it for '26 year? Megat Bin Megat Hassan: I think if you look at the Tenaga Nasional operations, many of our -- I think our procurement and supply chain chief is here as well. So I think many of our operations are related to the market prices. And we will continue because TNB is actually an infrastructure company. So we actually develop and construct infrastructure. So many of our costs are actually related to this infrastructure. So what we are seeing from the perspective for the market, there is a good stability with respect to the cost of equipment, for example, PPE across the world. And this actually helps us with respect to how do we budget for it. So at the same time, the stability provides us with the incentive in the procurement and supply chain. And internally, we have introduced what we call the value-based procurement in the sense that we try to instill a value with respect to our procurement and supply chain. I think from that perspective, I think we are -- for 2025, we are managing that quite well. That's why you can see that the costs are very much contained against our budget. And we believe we can continue to optimize this over the years. And one of the key elements that enable this value-based procurement is actually data analytics, which now being aggressively embarked in the procurement and supply chain. So we are quite positive with respect to using data on the prediction as well as getting the best price that we can. Ahmad Maghfur Usman: Usman here from Nomura. For the contingent CapEx, does battery consider as contingent because that's managing the loads for electricity distribution? Is it considered as contingent CapEx? Or is that part of generation CapEx, which is nonregulated? Megat Bin Megat Hassan: At the moment, the battery project that we are doing at Santong is under the base CapEx. Ahmad Maghfur Usman: It's under base CapEx. Okay. All right. Megat Bin Megat Hassan: Because that's why the difference between base and contingent is quite simple. If we can determine the project to be a sure project before the start of the RP4, it becomes base CapEx. Anything that requires further analysis or demand, then it becomes contingent. Ahmad Maghfur Usman: All right. And then also on top of that, currently, you have your Lahad Datu, your Santong, and I understand those places are in far flung remote areas to manage their electricity load there. Are there any more utility scale battery projects that you're looking to do as well aside from those 2? I mean, aside from those 2 that has been done basically. Megat Bin Megat Hassan: Yes. I think recently, if you aware or search the market, there is a tender by the Energy Commission for 4 sites. Ahmad Maghfur Usman: Any additional on top of that 4 sites? Megat Bin Megat Hassan: At the moment, that is the 4 sites that has been identified. And of course, we believe that will be coming in a series of tender by the Energy Commission. Ahmad Maghfur Usman: And where are the location at for these 4 sites, if I may ask? Megat Bin Megat Hassan: The location has been determined, but I cannot remember exactly off it. And you may ask why 4? Because based on our grid stability and reliability, we can manage the integration of RE even without battery up to a certain point. That threshold is, I think it's about 6,500 megawatts of RE integration and the system doesn't require the battery backup. Before that, yes, we require a specific number of battery backup until 13,000, so in terms of the grid planning, that is where it is going. So battery, so what my message is that battery will be introduced progressively based on the integration of the RE project that we are going to have. Ahmad Maghfur Usman: So that's more on the solar SS6, right? Okay. The other thing that I wanted to ask is on your projects in Australia, the solar panels. With the recent VAT issue in China, the rebate and removal, is that going to impact your economics for the Australia venture? Megat Bin Megat Hassan: I think definitely, when there is changes with respect to the policy such as VAT, it will change the dynamic. But the good thing is about the Australian market, it is a supply and demand perspective. So any changes to the supply side, it will actually commensurate the demand side. So for Tenaga, we are managing this with respect to the margin that we are going to get. And that's where the capital allocation and the hurdle rate become very important for us to venture into the project. But we believe, as in the past, the supply and demand dynamics in a competitive market is always guaranteed in the sense that the players can and will sustain their margin. Ahmad Maghfur Usman: Two more questions. On the Paka, what's the split of ownership between the other party and yourself because that hasn't been disclosed. I was just wondering. Megat Bin Megat Hassan: Well, I think definitely, we are on the -- very well in the majority side. Ahmad Maghfur Usman: Okay. That gives an idea. Right. Megat Bin Megat Hassan: Because I think in the proper time, it will be -- because we have not reached the financial close, so I probably would not want to sell it. But we are in the good majority, CFO said good and significant majority. Ahmad Maghfur Usman: And then on data center, there was this article a few days ago, Prime Minister Anwar says that he wants to stop the new data centers. Is that the case at the moment? There's a strict freeze on new data center application? Megat Bin Megat Hassan: Yes. If we look at the statement in greater details, so my understanding is that the focus will be the data centers with the AI capability rather than the normal data centers because we know there are basically 3 type of data centers. One is for the commercial application. That is for the trading that we normally buy from Shopee. There's nothing intelligent about it. It's just a transaction to make it good. So that's normal data center. The second one is the slightly complex application of the data center, which require a good latency as well as size. For example, TikTok. This is the second category. Yes, people use it, some for commercial, but it requires a good latency and meaning that the speed has to be -- otherwise, you are not going to see the video in a very good form. The third one is actually the high-end data center that really process data and actually look at, for example, the solution for the future. For example, how do you predict the next 1 week of cloud in Malaysia, that is the AI data centers that require the GPU rather than CPU. So I think a simpler analogy, probably the GPU-based data center are still encouraged, but the CPU data center is very much discouraged. That's how we understand it. And this is our conversation, and we are supporting this direction from the government through MIDA. So now all the data center, in fact, in the past 1 year, we have been communicating with MIDA to ensure that the country get the best of the data centers of the world. Hazmy Hazin: Hazmy here from CLSA. I have a couple of questions, but I'll start first on how have you seen the impact of AFA mechanism for overall FY '25 under RP4? Badrulhisyam bin Fauzi: It has been very good, in fact. That's why if you look at our receivables now, long gone are the days where you see a significant amount in terms of the ICPT. So if you look at the numbers now, it only have a substantial amount of around MYR 1.3 billion, but that's not because of AFA. That is because of the adjustment for transitioning from January to July because RP4 tariff was announced in July, but January was using still the old tariff. So AFA has been super for us. It helps our overall cash flow. And this is the part where we say, obviously, AFA is based on forecasted price. So unlike ICPT, which was lagging 6 months. So what happened is that we forecast the price for next month, and we bill it accordingly already. So by the time you finish collecting the bill, all fuel costs are already recovered. And because of the favorable prices at the moment, you have seen that it is in rebate position. So it's been good for both consumers and it's been good for us. For us, this is the part where AFA help our overall cash flow, then we can plan our cash flow better, then we can deploy the capital better as well. Hazmy Hazin: And just on the tax questions earlier, just for my understanding and better clarity. So you mentioned this year is about 22%. And going forward, should we expect roughly around that or higher or lower, what kind of direction? Megat Bin Megat Hassan: There are 2 sides of the equation. One is the incentive allowance that we will be utilizing. So that's one, I think, is what we would like it to be and the plan is to be consistent coming from the bucket that the allowance that is provided to us. The second part of the tax is actually how well the business is going to be moving forward. So there are 2 perspectives. The absolute amount may change because of the second part because we would like to pay higher taxes provided that we are making better businesses. I think that's the intent. So in terms of the percent, yes, I think we would like it to be in a very controlled manner as what you mentioned. Anything you want to add? Badrulhisyam bin Fauzi: I think they're looking at a number, obviously. So I think if you are forecasting long term, I think it will be prudent to keep it at around 24% for the longer term, which is what the effective tax rates are. Yes, we have this investment allowance incentive, but there is conditions to it. And obviously, for a company of TNB size, there are other factors such as interest restriction, fair value changes and accounting adjustment that would not qualify for tax deduction. So yes, this year, slightly better. But I think long term, I think push it to 24%, and that should be what we endeavor to deliver over the next many years. Hazmy Hazin: And on contingent CapEx, 2 side of things. So you mentioned, I think, about 80% utilization of that MYR 16 billion. Will that be spread evenly across these coming 2 years? Or will it be back ended? And also, you mentioned in terms of the difference between contingent and the base CapEx is the approval process. Can you just elaborate a bit how different it is? Badrulhisyam bin Fauzi: Maybe if you can pull up the slides on the contingent CapEx just now because as far as the CapEx quantum are concerned, that's why we have MYR 13 billion and MYR 15 billion. You look at 2025, obviously, I split it between base and contingent. But for '26, '27, if you think about it, the MYR 10 billion of the base CapEx out of '26 is already spent in '25. So the balance is only MYR 16 billion. And just now the Dakut Megat also guided that for 2026, contingent CapEx is around MYR 3 billion. So I think what we're saying is, yes, the majority of 2027 would be from contingent CapEx. So if you look at it, we are not really looking it internally that you have to top up or the other. It's really planning the CapEx of delivering the MYR 40 billion or MYR 43 billion maximum. So where it comes from, yes, you are right, it's a matter of process. So if you remember, before this, we talked about the base CapEx being reflected in the base tariff already. And then the contingent CapEx at the point of RP4, it wasn't certain yet. So that's why it goes into contingent CapEx. But the moment it goes into the regulated asset base, it becomes the overall return. And we do not itemize -- I mean, it's not differentiated where the revenue comes from. It's the same thing. So to us, we are not so concerned about whether it's base or contingent anymore, and you shouldn't be also because the moment it goes into CapEx, let's say, 13 billion next year, whatever the composition, you will get the 7.3%, and you will get the return from that. So that's the way we look at it. So yes, there is upside there, but that is if we can deliver more than 80% of the contingent. So that's the way we should look at it. So that's why we keep saying that the recognition now is the same as base. So as far as the numbers are concerned, of course, on the operations side, they need to think about how to get the approval because the base CapEx is approved. Contingent CapEx is preapproved, but you need approval before you spend it. This is the trigger. So this is still consistent with what we told you when we got the approval the last time. It hasn't changed. So it takes a bit longer for contingent CapEx. And now that we know how the mechanism works, obviously, we will preplan ahead so that by the time we get to spend it, it's already approved. So... Hazmy Hazin: Just last question. I think I saw there's an elevated IT spending on computer software during the quarter. Is that a one-off thing? Or will that be repeated? Megat Bin Megat Hassan: Yes. This is something that we are trying to manage. And to a certain extent, we have a discussion with the IT providers. It is very much to the software licensing that we have been having with the current service provider that we have. So what we have done at least for one service provider is actually because in the past, the formula is always very rigid. It is the number of employees of Tenaga Nasional regardless whether you are a user or nonuser for that specific software, but it's taken to that dimension. The published number of employees is the base versus the fee. So we are having a communication with the service provider, best we actually handle this moving forward so that it will reflect actually the actual utilization and the fee that we are going to cost us. And we have gotten some positive response towards that. So we believe this is something that, yes, it is a concern, but I think we are -- we want to address it. And I believe we see there. So I believe we are going to manage it in 2026. Edwin Ng: Okay. Now we will move on to take a question from Webex. We have Fong from CMB on the line. Unknown Analyst: Just 2 questions from me. Firstly, I just wanted to go back to the earlier question, right, on the nonfuel costs, particularly related to the software licensing. I wanted to understand whether these are incurred on the regulated side of the business and therefore, are these costs, when we see them going up, are they recoverable through the IBR framework or not? That's the first question. And my second question is I noted that there is a recovery of insurance claim at Genco subsidiaries in the fourth quarter. Is this related to Manjung 4 or something else? And how much was the amount? And would there be further recovery in 2026? Those are my 2 questions. Megat Bin Megat Hassan: Yes. In -- question one is still on nonfuel costs, example, software licensing. Yes, these are incurred under the regulated costs. And it is not only software licensing. The IT also include the cybersecurity measures that we are taking. So those are basically recovered through our IBR scheme. Recovery of insurance claim in Genco, is it related to M4, how much, second question. Will there be more recovery in 2027? Yes, partly, I think the recovery is actually coming from Genco. And with respect to the Genco recovery, we will continue in 2026, how best we get those recovery. We are talking also to the OEM together with the insurance, respectively. So probably that's the answer. Yes, we already started in 2024 for M4 recovery and 2025. We will continue in 2026. But most accounting refer that to as one-off item. Edwin Ng: Okay. Due to time constraint, we will now take the last question from a participant on Webex. The participant is Rachel Tan from UBS. Can you hear us? Rachael Tan: Can you hear me? Edwin Ng: Yes, we can hear you. Rachael Tan: Great. I had 4, but I guess now I have to choose one. Okay. I guess I can ask the more broader question. So for the contingent and base CapEx, I think there's a lot of interest among investors about what the nature of the CapEx is. So will you, in time, be able to share with us the nature of the projects being done? I think people would really be interested in the color that you can provide. Megat Bin Megat Hassan: Thank you very much. As mentioned, the definition of base CapEx and contingent CapEx is the grouping with respect to the project. But it relates to the same nature, meaning that is the infrastructure that Tenaga will be building upon, meaning that it's the transmission line, the substation, the distribution network, the small substations, PES, as we call it, as well as the up to the customer interaction, for example, smart meter. So it is this nature of CapEx that Tenaga spent. And the intent or the objective of those CapEx are basically 3. First is actually demand growth, meaning that we are going to build new substations. We are going to build smaller substations at the grid at the distribution level for new growth with all the equipment in place. Second is replacement of our existing asset, meaning that the asset that has been there for, based on the lifespan, 25 years that require replacement. So this is the second objective of the CapEx. The nature is still the same. If the pencawang is more than -- the substation is more than 30 years, we will do a rehab, meaning that we will do the replacement of all the equipment, including the lines. So the second objective is actually replacement that we call it as security of supply, meaning that we ensure the objective of security of supply. So these are the 2. The third one is specific to the energy transition perspective. For example, there is a requirement for us to do the integration of RE from solar rooftop as well as solar farm or even from hydro as well as the gas power plant. That is part of the energy transition CapEx. And we also include smart meters, for example, as part of the energy transition CapEx. So the definition and objective can vary, but the nature of the CapEx are the same. It's about the infrastructure of electricity that we are going to build or replace or the new technology that we are going to introduce for the grid as well as the distribution network and also for the customer benefit. I think the details, I think the team probably can share because it's not something that is a secret so that we can have those understanding. Okay. Thank you, Rachel. I hope you have given us the most difficult question. And I believe the other 3 questions, you can still post it and the team will address it accordingly. Edwin Ng: Ladies and gentlemen, that is all the time we have for Q&A today. I would like to thank you all for your questions. Now I'll pass to Datuk Ir. Megat Jalaluddin Bin Megat Hassan, President and CEO of TNB for his closing remarks. Megat Bin Megat Hassan: Thank you once again, Edwin. So this is the closing remarks. Ladies and gentlemen, thank you for your questions and listening. As always, please reach out to our Investor Relations group for any questions and further questions that we were not able to cover today. To summarize today's session, recap financial year 2025 performance reflect the strength and resilience of TNB business model. Our regulated segment continue to provide earnings stability with cash flow visibility, supported by disciplined RP4 execution and improving operational performance. We delivered across all our pillars, securing new generation capacity under Category 2, strengthening grid resilience, advancing RE integration as well as a spending-driven customer solution. At the same time, we progress regional interconnection initiatives and enhance our ESG performance, reinforcing our long-term competitiveness and also funding assets. So in conclusion, we remain committed to delivering sustainable return to our shareholders. Our dividend policy thus far remain intact, and we expect to sustain on current trend of dividend payment, of course, subject to performance and financial condition in which the management will try our best to deliver the excellent performance. With your continued trust and support, we remain confident in our ability to build a stronger, greener, more resilient energy future for the nation. Rewarding our shareholders remain a top priority, and we truly value your continued confidence in us. Once again, thank you very much, ladies and gentlemen, and have a pleasant day ahead. [Foreign Language] We see each other in the future in a different platform. Thank you very much. Edwin Ng: Thank you, Datuk Megat. Ladies and gentlemen, we have now come to the end of our session. On behalf of Tenaga Nasional Berhad, we thank you for your participation in today's briefing, be it present physically or virtually. For any questions that remain unanswered, rest assured that we will promptly address them following this event. If you require further clarification and inquiries, please feel free to contact our Investor Relations officer and e-mail us at tenaga_ird@tnb.com.my. As you leave the hall, we warmly invite all analysts who have yet received their door gift and packed food to kindly collect them before departing. To those observing the holy month of Ramadan, wishing you a blessed and peaceful Ramadan. Thank you, and have a wonderful day.
Antje Witte: Welcome to the UCB Full Year 2025 Capital Markets Call. My name is Antje, and I'm doing Investor Relations at UCB. Before I introduce you to the agenda and hand over to the speakers today, I have some remarks. This video is being recorded. You can find the presentation in our download center, if you dial in by the phone. The presentation and the following Q&A session are intended for institutional capital market participants only. If you're not, please disconnect now. This presentation and the following Q&A session are covered by the disclaimer and safe harbor statement as stated on Slide 2 of the slide deck. Kindly read this carefully. With this, I'd like you to introduce you to our speakers today: Jean-Christophe Tellier, our CEO; Emmanuel Caeymaex, Head of Patient Evidence; Fiona du Monceau, our Chief Commercial Officer; Sandrine Dufour, our CFO; and this will then be followed by a Q&A session with all presenters. Thank you. Jean-Christophe, over to you. Jean-Christophe Tellier: Thank you, Antje, and good morning, good afternoon, good evening, everyone, and thank you for joining our full year 2025 presentation. It is really with great pleasure that with my colleagues, we will share with you our results of what has been a very strong year. Can we move to the next slide, please? Because, as you know, we are focusing on execution of our launches, and I think it's fair to say that 2025 has demonstrated our ability to continue to deliver strong growth based on our 5 growth drivers that we have, and thanks to them, they will allow us to enter and continue to build our decade of growth. If I want you to keep just a few elements out of this slide, I will start on the top left part by just one number. Our net sales growth versus last year at constant trend has been at plus 35%. How we have been able to deliver this growth? It's in the arrow of the middle. And as you can see, our 5 growth drivers have reached EUR 3.3 billion, which is more than a double of the revenue that these products have delivered last year. Bimekizumab only delivered and achieved more than EUR 2.2 billion in 2025. So as you can see, a very strong growth that has been delivered in 2025, and Sandrine will be able to go further into the P&L. But a few highlights maybe on my side about 2025. On top of this delivery of the growth and the growth drivers that we have, we have seen also some critical advancements in our pipeline, and that's the bottom line of the slide. First, KYGEVVI. We achieved approval in the U.S., and we have a positive advice from the CHMP from Europe. As you know, KYGEVVI is active in an ultra-rare disease, TK2 deficiency. And it is the only -- first and only treatment that would be available for these children and family to save their life and help them to have a better life. The second element in '25 was our bispecific. We have 2 of them in atopic dermatitis, donzakimig and galvokimig. Both of them have achieved positive endpoints -- the primary endpoint. But through a rigorous analysis, we have decided for the time now to focus on galvokimig and accelerate the development of these IL-13, IL-17 bispecific, not only in dermatology, but also into neurology. Then bepranemab, our anti-tau antibody in the Alzheimer's disease. We have a positive Phase II. We have -- we think we have very strong insight that will help us to guide to develop this product for these patients. And we have been pleased in February to receive a fast-track designation by the FDA. And finally, in '25, we have also started the development of BIMZELX in rare disease, but quite debilitating, which is the palmoplantar pustulosis. '25 have seen also a decision, a very important and strategic decision for us, to make a significant investment in the U.S. with a total of $5 billion of direct and indirect investments into a mammalian manufacturing site to manufacture BIMZELX in the future from the U.S. Next slide, please. So I think it's fair to say that the strong achievement that we have been able to realize in '25 guide us and promise us a bright and successful future for the decade of growth ahead. The first reason of that is that we are one of the few companies who will have a long periods of exclusivity before the next wave of loss of exclusivity. As you can see on the top, we will start in 2033 and the last one will be BIMZELX in 2037. This long period of exclusivity will give us the time and the space to really deliver on our growth. The second element that can also explain our confidence in the future is the ability to continue to differentiate our portfolio. You remember that BIMZELX was the first product to be able to be launched with 3 clinical studies of superiority versus standard of care. As you know, we have started, a few years ago, one additional study in psoriatic arthritis, BE BOLD versus risankizumab. We were expecting this result in the second half of 2026, but we are pleased to share with you that thanks to a very strong and fast recruitment, we will be able to get the result earlier already in the first half of this year. And we continue to grow our pipeline. We'll have this year one submission, 6 Phase II -- 6 Phase III, 5 Phase II, as you can see here. And because of a strong balance sheet and particularly our ability to reduce our debt, we now, of course, have the space and the capacity to think about inorganic growth to continue to fuel, expand and accelerate our growth future. So thank you again for participating to this call. And with this, I would like to hand over to Emmanuel. Emmanuel Caeymaex: Thank you very much, Jean-Christophe, and hello, everyone. It's a real pleasure to be able to provide you with an update on our pipeline from this new vantage point for me as Head of Patient Evidence. So let me take you through innovating with purpose and how we translate differentiated science in durable growth. Our engine is robust, and it's focused on immunology and neurology and their intersection. And today, I'll focus on galvokimig, FINTEPLA, our newly approved KYGEVVI after commenting on a few other key updates. So on the next slide, you can see our mid- and late-stage pipeline that's driven to -- that's built to drive medium- and long-term growth to diversify risk and deliver innovation and breakthrough aimed at high unmet need populations. And just for ease, I'll start at the top with the BE BOLD study, which Jean-Christophe just mentioned. So it is strategically important in the sense that there is an opportunity in psoriatic arthritis to raise the standard of care. And right now, the IL-17 A/F dual inhibition is not yet positioned as a first-line treatment and is not yet leading. Yet we believe, based on our Phase III results, that there is an opportunity to demonstrate superiority versus the IL-23 inhibitor, risankizumab, SKYRIZI. And so we've powered the study to be able to achieve this using a pretty assertive and stringent endpoint, which is the ACR50 at week 16. And so provided this is successful, we'll have the opportunity to strengthen the positioning of BIMZELX across both rheumatology and dermatology, where many patients with concomitant psoriasis and psoriatic arthritis are treated. And as mentioned earlier, the results are expected within the first half of this year. You also read that we started the palmoplantar pustulosis study. And this actually is a disease that is largely IL-17F driven, and this will be an opportunity for us to continue to establish the leadership of bimekizumab in the IL-17-mediated diseases. Now for RYSTIGGO, rozanolixizumab, on the one hand, we have the MOG-antibody disease study readout in the second half of this year, and we're also very pleased to announce that we're starting a ocular myasthenia gravis Phase III study, recognizing the very good clinical performance of RYSTIGGO and the fact that most patients with generalized myasthenia gravis actually start with ocular symptoms, and so this is a logical thing to do to make sure that we enable symptoms to be tackled early and thereby prevent irreversible damage for patients with myasthenia gravis. So looking forward to starting this study within this year. I'll briefly touch on FINTEPLA, fenfluramine, a little later. I just wanted to say a word also about bepranemab. So we've been working very proactively and constructively with regulatory agencies, starting with the U.S. FDA, who very recently gave us the fast-track designation for bepranemab in Alzheimer's disease. And so we're encouraged by the exchanges and the meaning of the data that we've been able to generate in our proof-of-concept study, in particular, in a subpopulation that was predefined. And again, that data was pretty convincing across biology and also across cognition and functional endpoints. So looking forward to more with bepranemab. And then finally, galvokimig. So Jean-Christophe mentioned, we're starting 2 studies in respiratory diseases. And we have started the Phase IIb study in atopic dermatitis, and that's a 52-week study, which will report results by 2028. Now if we move to the next slide, we can dive a little deeper into galvokimig. First, recognizing the fact that in atopic dermatitis, the results were pretty strong. And actually, this molecule was designed to tackle the heterogeneity of atopic dermatitis, delivered about 50% EC90 at week 12 and also very good pruritus data, each data. So the differentiated potential is there, which we will now test in this Phase IIb and really seek to define the optimal dosing. Now what's new and what you haven't heard before is the foray that we're planning in COPD and in bronchiectasis, non-cystic fibrosis bronchiectasis. So COPD has a massive unmet need, as many of you know, it's very prevalent. It causes 3 million deaths per year. So the burden of disease is really very, very high. And it is entering a precision immunology decade. So in this sense, respiratory is trailing dermatology and rheumatology. But I think that the translation of biology is now happening. And with galvokimig, we have an agent that, through its combinatorial approach, really has the potential to addressing core mechanisms of disease in both COPD and non-cystic fibrosis bronchiectasis. So in COPD, you're aware that some products were approved and the segment of patients that are so-called high eosinophils, they're served to an extent, but that's only about 30% of the population. And the other 70% really don't have an approved treatment or targeted treatment to go to today. And we do know that whilst the IL-13 inhibition is presenting a solution that other group probably needs a therapy that takes care of neutrophil-driven inflammation. And that is the concept we're going to test in quite a large study that is going to start this year. Bronchiectasis is not as well known, but it's a disease which is chronic, is very debilitating, chronically diluted bronchi. With the advent of DPP1 inhibitors, there is a level of proof that addressing neutrophilic inflammation can have an impact, and we're talking about a 20% reduction in exacerbations in patients that have at least 2 exacerbations per year. So you see there's still a lot of headroom. And we do know that the pathobiology centers on neutrophilic inflammation, but also mucus dysfunction. And so that's offering validated targets for us and a target which by inhibiting both IL-13 and IL-17, we should be able to meet. So we look forward to those 2 studies producing results. We certainly feel that the scientific rationale is very credible that in each case, one of the pathways is somewhat derisked and that the science underlying the second pathway in each disease is now well established. So together, this represents a very significant opportunity for galvokimig. Now let's move forward to neurology and to FINTEPLA. So as you know, FINTEPLA has been really focused on developmental and epileptic encephalopathies. You learned last year that in CDD, which is an ultra-rare genetic DEE that FINTEPLA has had very nice results, which now will enable us to submit a file to the regulators for approval, hopefully rapid approval given the enormous unmet need here. The news for today is that we're taking FINTEPLA into neurodevelopmental disorders and in particular, RETT Syndrome. So Rett syndrome is a disease with a profound unmet need. And the mechanism of action of FINTEPLA should be able to address that unmet need beyond the seizures. And so we're looking forward to initiating this Phase III, which is based on clinical observations and credible mechanistic hypothesis. We're looking forward to starting this in the next few months. So FINTEPLA, with no generic until 2033, is representing quite a big opportunity for impacting patients, but also for UCB value creation. So on to the next slide. And then to close KYGEVVI, where we just received FDA approval and CHMP nod. So KYGEVVI is the first and only approved treatment for adult and pediatric patients with TK2D deficiency. This is for patients that developed the disease age 12 or below. It is the first foray for UCB in ultra-rare diseases. It's a mitochondrial disease, and so we look forward to learning in this space and establishing capabilities. So we're ready for an agile commercial launch that's planned in the first quarter of 2026 in the U.S. first. So as you see, the number of diagnosed patients worldwide today is probably around 1,500. So there's probably still some space to go to identify patients. However, many patients are already benefiting from KYGEVVI through our development program or in other ways. And so we look forward to expanding that over the next few months. So with all of this, I hope that you're seeing that our development pipeline has gained momentum over the last year and with what is planned for this year. With COPD and bronchiectasis set for a biologics-driven decade and our programs stage for '26 to '28 catalysts, we're advancing differentiated mechanisms, disease-modifying ambition and value creation for the next few years. And with that, it is my great pleasure to hand over to Fiona, who's just taken over as Chief Commercial Officer. Fiona, the floor is yours. Fiona du Monceau: Thank you, Emmanuel, and I look forward to bringing KYGEVVI to patients. This is a unique drug with some survival benefit, which will really make a difference to these patients, but also to their families. Good morning, good afternoon, good evening, everyone. As Emmanuel mentioned, we exchanged role 6 weeks ago, and so I'm delighted to share with you the performance of the team. I'm just back from the U.S., and I can tell you the teams are fired up to deliver on the 2026. Next slide, please. So let's start with BIMZELX, our IL-17 A/F. It's been reaching more patients. It's fast, deep and durable action is really having a great impact on patients around the world. We've now been approved in more than 50 countries. We've been helping more than 116,000 patients. And as Jean-Christophe mentioned, reached net sales of above EUR 2.2 billion. If we look at our dynamic patient share in the IL-17, we're around 30% for psoriasis, 20% for our rheumatology indications and 45% for HS. So from a net sales split perspective, that gives you about 53% in PSO, 28% in HS and 19% in rheumatology. Now if we move to the right-hand side of the slide and look at our uptake in the U.S. compared to analogs, you can see that we're really leading the pack and look forward to continuing on that track. We are proud to say that we've increased our access coverage with 36 more million lives versus 2025 and so now have a coverage above 80% of the commercial lives. And as I sort of think about these progressive diseases that really creates lasting damage, it's really important that patients get access to our drug as early as possible. If I may take sort of some metaphors, if you take PSA and you think about sort of sand in a gearbox, if you flush the sand away quickly, your car continues; if you delay at some point, your gearbox breaks. Likewise, for HS and you think about sinkholes, if you fix it quickly, it's okay; if you wait too long, the whole street comes down. And for our HS patients, this is -- these are tunnels under the skin and lasting scars that you can never get back. So let's move to the next slide. I know everyone is very interested in our performance on HS. So on the left-hand side, if we look at our performance in the U.S., we're now at a 32% market share. I think back in July when Emmanuel presented, we were at 25%, and we look forward to continuing to drive our Formula 1 forwards. And we've shared some of the market shares across some of our countries around the world. Now we often get the question on what do we think the HS market is going to look like going forward? As you know, we're learning about this new market every day, and it's growing significantly. If we look at the number of patients back in October 2024 versus October 2025, we've seen a 24% increase in that space. And our estimates for between 2025 and '30 is that the market will continue to grow in the mid-teens CAGR and expect to reach around sort of $5 billion overall. Now if we go to the next slide, let's talk about our rare portfolio. So first, our MG portfolio. We are at UCB, the first and only company offering a dual therapy portfolio. We have RYSTIGGO, the FcRn and ZILBRYSQ, our self-admin C5. Both of them are uniquely positioned. They're tailored to patient needs. You know that this is a population of patients that's very heterogeneous, and it's also called the Snowflake patients. We are supporting these patients with an excellent patient support program. They are now approved in 30-plus countries, have treated more than 3,700 patients and combined reach above EUR 0.5 billion in sales. And then I will finish with FINTEPLA. With our strong heritage in epilepsy, FINTEPLA is it's now a foundational therapy in Dravet with about 20% market share in the U.S. and is gaining traction in LGS with 9% of the patients. Worldwide, we've now treated more than 14,000 patients and delivered sales above 420 million. On that note, I'm going to hand over now to Sandrine, who will give you an overview of the overall portfolio as well as our disciplined execution and operational efficiency from a financial perspective. Thank you very much. Sandrine, the floor is yours. Sandrine Dufour: Thank you, Fiona, and good morning, good afternoon. I'm pleased to present our '25 results and our '26 guidance. We delivered strong top line growth. We have expanded margins meaningfully, all while continuing to invest behind our launches and pipeline. And that translated into a significant increase in profitability and clear operating leverage. And looking ahead, we remain focused on sustaining this momentum, driven by our 5 key growth drivers. Let's start with 2025 net sales on the next page. The combined net sales of our 5 growth drivers more than doubled year-over-year, underscoring the strength of our portfolio. This performance was primarily driven by BIMZELX, with net sales more than tripled to EUR 2.2 billion, reflecting strong volume growth across all indications with particularly robust momentum in HS. In the U.S., this was supported by a favorable payer mix with a high conversion to paid prescriptions and a meaningful proportion of unrebated scripts. And that momentum continued into the second half where we also saw a positive gross to net true-up versus H1, driven by a more favorable channel mix than what we had initially anticipated. FINTEPLA continued its solid trajectory, delivering 26% year-on-year growth and reaching EUR 427 million in net sales, reflecting continued penetration across Dravet and Lennox-Gastaut indications. Within the GMT franchise, RYSTIGGO and ZILBRYSQ together generated more than EUR 270 million of incremental net sales over the year. And this was achieved in an increasingly competitive environment and reflects our differentiated assets in this space. EVENITY also delivered strong growth with net sales up 33% in Europe to EUR 137 million. It's important to note that this figure represents only the direct European net sales. Our total economic exposure is significantly higher as reflected in the EUR 632 million net contribution from our partners in 2025, corresponding to 32% growth and which continues to be a meaningful contributor to profitability. Beyond the 5 growth drivers, CIMZIA delivered net sales of EUR 1.95 billion, down 4%, flat at constant exchange rate. And despite being off patents, volumes grew by 4%, making CIMZIA the fastest-growing branded TNF across major markets. And this volume strength was more than offset by continued pricing pressure, particularly in the U.S. driven by the new IRA Medicare Part D legislation and including the growing impact of 340B. BRIVIACT grew net sales by 11% to EUR 758 million with sustained growth across all regions. The product was approved in Japan in June 2024 and has reached loss of exclusivity in the U.S. this week and will achieve loss of exclusivity in Europe in August this year. And of course, this is reflected in our forward-looking assumptions. Briefly on ESG in '25. We strengthened our environmental performance, improving our CDP climate change rating to A, and we were ranked An Industry Leader #2 in the Global Biotech by Sustainalytics. Our financial performance is underpinned by a consistent sustainability agenda, which we see as an important contributor to long-term value creation. So let me now go to the financial performance and the profit drivers. And on the top of the page, let me start with revenue. So total revenues reached EUR 7.7 billion, up 26%, 29% at constant exchange rates. This was driven by net sales of close to EUR 7.4 billion, up 32% or 35% at constant exchange rate, reflecting strong underlying demand across our growth portfolio. Turning to profitability. Adjusted gross profit reached EUR 6.1 billion, up 27% with the gross margin improving to 79.2%, driven primarily by a more favorable product mix from our 5 growth drivers. Operating expenses totaled EUR 3.7 billion, up a limited 5%, clearly demonstrating strong operating leverage. Marketing and selling expenses increased by 20% to EUR 2.5 billion, reflecting our continued investments behind the growth drivers, including deeper market expansion, new geographies and resource reallocation from mature to newer assets. R&D expenses increased by 2% to EUR 1.8 billion, reflecting continued disciplined investment in the pipeline and early research, and as a result, R&D represented 24% of revenues. And finally, G&A expenses remained well controlled and decreased by 3%. Other operating income was a positive EUR 829 million, up EUR 265 million versus '24. The majority of this, EUR 632 million, came from the net contribution from our EVENITY partners, which grew by 32%. And in addition, we continued our portfolio simplification strategy with the sale of an asset for EUR 315 million, and this was partially offset by EUR 111 million of one-off costs related to the resolution of contractual commitments linked to a noncore asset. Altogether, this resulted in adjusted EBITDA of EUR 2.6 billion, up 79% or 87% at constant exchange rates, driven by strong top line growth, improved gross margin and significant operating leverage. EBITDA margin increased by 10 percentage points to 34%. And if we correct for the asset sale and the one-offs, adjusted EBITDA came in at EUR 2.4 billion, representing a 31.4% margin, which is in line with the guidance that we updated back in December. Moving to profit. Group profit reached EUR 1.6 billion, up from EUR 1.1 billion in '24. Net financial expenses declined to EUR 126 million, driven by lower net debt. The effective tax rate was 14%, reflecting use of R&D incentives and deferred tax asset recognition despite a negative impact of Pillar 2, and it's in line with the underlying rate in '24 when adjusted for the China divestment. Core EPS reached EUR 9.99, doubling year-on-year and closing another strong year for UCB. And finally, strong cash flow generation has allowed us to fully deleverage the balance sheet, giving us a strong and flexible platform to support future growth. So moving to the next page. Let me now turn to our 2026 financial guidance. First, we have evolved our approach to constant exchange rate guidance to improve comparability and transparency. Our guidance also reflects current rules and regulations. It does not include any impact from potential MFN or tariff. We are, of course, closely monitoring the external environment. So for revenues, we expect high single-digit to low double-digit growth at constant exchange rates. The underlying drivers remain the same 5 growth assets as in '25 with BIMZELX as the largest contributor, followed by RYSTIGGO, ZILBRYSQ, FINTEPLA and EVENITY. On BIMZELX, we expect access expansion in the U.S. to come with a lower net price, which we anticipate will support strong volume growth. The overall revenue growth rate will also reflect the loss of exclusivity for BRIVIACT in the U.S. and Europe, to a lesser extent, impact LOE in Japan as well as a modest negative perimeter effect related to last year asset disposal. So overall, strong momentum from the growth portfolio, partially offset by expected headwinds from LOE and perimeter, and that's reflected in the revenue range. Moving to EBITDA. we expect high single-digit to high-teens growth at constant exchange rate. And if we adjust the 2025 EBITDA for the product sales and the one-offs, so starting from a EUR 2.4 billion base in '25, we expect EBITDA growth at constant rate in the high-teens to high 20s, significantly outpacing revenue growth. And there are 3 main drivers. First, continued improvement in adjusted gross margin driven by the evolving portfolio mix despite the impact of net price decrease. Second, regarding OpEx, marketing and sales and R&D expenses will continue to increase. Their contribution to margin expansion will be lower than the exceptional operating leverage that we have achieved in '25, and this reflects higher volume-linked variable costs in marketing and sales and our continued deliberate investments in innovation. We will maintain discipline and clear prioritization in the uncertain external environment that we operate in. And last, EVENITY's contribution is expected to grow faster than the top line, supporting further margin expansion. While we will continue to actively manage and simplify the portfolio over the long term, we do not plan any established brand asset disposal this year. We expect the tax rate to increase to around 20%. And we have provided you, at the bottom of this page, with the sensitivity of the guidance to foreign exchange impact on both revenues and EBITDA lines. So to conclude, overall, strong growth, accelerating profitability and a very solid financial position. So with that, let me thank you, and I'll now hand over to Jean-Christophe. Jean-Christophe Tellier: Thank you, Sandrine. And thank you, Fiona; thank you, Emmanuel, for this overview of our performance 2025 and sharing with you our guidance for '26. And as Sandrine has just said, I think you would agree with us that with the strong performance that we have delivered in 2025 -- next slide, please. With the strong performance of 2025, we are confident that we will be able to continue to deliver a solid growth again for 2026 and pave the way for a successful long-term growth for UCB. And this is based mainly on 3 components. The first one is the continuous focus on innovation that have guided us for the last years and will continue. This focus on innovation give us a possibility to build a portfolio of differentiated assets that creates very differentiated value for patients who need this asset to have the life that they want to live. Two. Rigor and discipline in execution, the ability to be resilient, to be agile, to get the resource where we feel the highest return in order to deliver strong performance and efficiency. And three. By creating an environment, a culture for everyone to be at their best and be purpose-led in such a way that we deliver the maximum value on the long term for all stakeholders, including, of course, the patient and shareholders. So with this in mind, we would like to move now to the Q&A, but allow me maybe a personal message before handing over to Antje for managing the Q&A. Because today, it's quite a special day for us at UCB and maybe also for you as it will be the last full year results that Antje will have the chance to be with us, and we have the chance to be with Antje. As Antje has decided, after 27 years at UCB, to enjoy life outside of corporation, which I think it's fair for her to let her benefiting from that. Antje, you know, has been the voice and the face of UCB for all of us and all of you. Her dedication, our energy, our engagement and commitment to serve our shareholders and all of you have really been an anchor of UCB successes in the past. And for me, as CEO, since my very first day here, I always have had, with Antje, a very good and solid sparring partner who have been able to build and strengthen the reputation of the company and help me all along. So Antje, thank you very much. Antje will pass the baton to Yvonne Naughton, who will take the position as of May 1 and have just joined us. So we'll have a few months of handing over. And so, of course, we are very pleased to celebrate and welcome Yvonne, but at the same time, we are a little bit sad to let you go, Antje. So with that, I hand it over to you to reorchestrate the Q&A again for us. Thank you. Antje Witte: Okay. Thank you so much. That's indeed a very emotional moment. I'm thankful for everything. I think we live together through so many different situations. I enjoyed it fully, even though it might sound strange, but that was good and bad. And yes, it's time that I'm going private. I'm going to do all the things I haven't done yet from now into what's next, seeing the full potential. And I will definitely miss you, this company and it's -- especially its people, my colleagues are fantastic and has been my life and my family. I'm here, as you say, until end of April, so we will have an opportunity to connect in the remaining weeks and also introduce Yvonne to you, who is already with us here. And yes, for those who see us in London next week, that's for sure where you're going to meet us. Okay. Thank you. So going back to business, we will now start the Q&A session. [Operator Instructions]. The question session will be handled by our operator today, Kjell. You can also e-mail your question to me under antje.witte@ucb.com, and I will ask your question on your behalf. Kjell, operator, please explain how to ask a question. Operator: [Operator Instructions]. Our first question comes from Peter Verdult from BNP Paribas. Peter Verdult: Peter Verdult, BNP. I'm going to break with 20 years of traditional protocol because I, myself, never thank or congratulate management on public conference calls, but I will make an exception on this one and say, Antje, personally and on behalf of many people on the line, thank you for your service and professionalism. It's been great fun, and good luck with your next chapter. Now back to business, 2 questions. Firstly, just on R&D and then secondly, on capital allocation. Just on R&D, clinical trial risk in immunology and inflammation. We've seen the pharma industry generate mixed data for OX40 in AD, MoonLake missed in HS, we've seen mixed data in COPD for IL-33. And some industry CEOs are claiming it's now harder to do clinical trials in I&I, citing difficulty recruiting biologically naive patients, moderate to severe patients and dealing with a higher placebo response rate. So maybe anyone or Emmanuel, does UCB agree with this premise? And can you remind us what UCB does to ensure clinical trial success and how much of that clinical trial is done in-house versus CROs? So sorry, a bit of a big picture question, but I think it's important when you think about galvo and the promise of that asset. And then more quickly, JC or Sandrine, your net cash found there's no interest in buybacks, and I assume your dividend policy is unlikely to change materially. So is the message on be still about platforms and modalities and early stage pipeline efforts? Or are you now signaling that you're broadening your scope in terms of considering inorganic growth opportunities that might add revenues nearer term? Emmanuel Caeymaex: Yes, Peter, thank you very much for your question. And we see this, although there is variability across diseases. So in certain cases, the endpoints, the duration to achieve the endpoints and the availability of patients that are moderate or severe is not as much of an issue. But clearly, the trend has been more noise. And so the way we deal with this is, first of all, we're more prudent and careful around the design of the study. We're very careful around endpoint and time selection. We're deploying more people, site managers to ensure that execution is tighter and that the education of the various sites around the world provides a level of homogeneity. We also tend to allow for size -- not to be too conservative on the sizing of the samples, just recognizing that there could be more noise. And finally, in terms of CROs, we've gradually taken in more roles. But at the same time, we do acknowledge that in new areas, often CROs have a lot of experience that we can learn from. And so we are very open in collaborating with those teams to make sure that we do not repeat mistakes or that we learn from prior experience. Thank you. Jean-Christophe Tellier: Thank you, Peter, for your second question. So you're right. I mean, our strength in our balance sheet and the fact that we have now reduced and have no debt creates a lot of space in a sense for being able to consider investment in inorganic growth for the future. As you know, because we have our loss of exclusivity will not be before 2033 for the first one and until 2037, there is also -- we have also the time to think about it. I used to say, and I think I've said that with you last year, that it was years of execution of launches, and we didn't want to create a potential risk to disrupt the organization by making integrations or acquisitions that will require local resources. Of course, after now several years of execution of the launches, we start to be in a phase where we can have some time to dedicate to potentially addition to our pipeline. But the focus will be most likely on early clinical or clinical area -- assets and area where we have capabilities. And these questions of integration and complexity of integration will be, of course, also very much scrutinized. So yes, we always have been looking. We are now a little bit more intentional on that with the objective to strengthen our capabilities, thinking about the long-term growth and be careful about not disrupting the execution of the launches. Operator: Our next question comes from Stacy Ku from Cowen. Stacy Ku: At the risk of becoming emotional, many thanks to Antje for her key support in our coverage of UCB. Very excited for you, and we'll miss you. So first, back to the Q&A. When we think about the revenue guidance range, the low end does suggest BIMZELX is in line with consensus and the high end of the range seemingly driven by BIMZELX outperformance. So I would love to hear your views. And specifically, how we should think about the bio-naive HS patient segment as it relates to access and reimbursement? Curious to get your thoughts on whether it will be different this year, as we think about upside? Second question is whether or not you all would be willing to provide additional details around donzakimig prioritization? Does it relate to the emerging atopic dermatitis competitive landscape, your ability to think about donzakimig as a broader I&I platform? Just any additional details would be very much appreciated. Jean-Christophe Tellier: Stacy, thank you. I'm happy to start with the donzakimig question. So indeed, as you mentioned, the atopic dermatitis field is quite competitive. And when we look at this from a portfolio point of view, we saw a big opportunity to double down on galvokimig based on the data we have in hand. In terms of the biology of donzakimig, the combination of IL-13 and IL-22 inhibition probably is having a more narrow potential in terms of disease areas where this can make a big difference based on today's understanding of biology across autoimmune disorders. So indeed, those 2 things come to play. Now eventually, we'll release the data, and it's an asset which we believe can have value. However, from a portfolio point of view, it wasn't prioritized at this point. Sandrine Dufour: Right. And Stacy, your question on HS comparing the bio naive and the access and the reimbursement. I think it's fair to remind that in 2025, we clearly benefited from a strong access from HS patients even in areas where there was no access coverage of formulary where there was a clear efforts from both physicians and patients to get access to the drug, and that, of course, translated into a full price. We do not expect this to repeat in '26 clearly because we have expanded access and formulary. And so what we expect to see that there will be a coverage, which will be a mix of what we have, i.e., double-step edit, single-step edit and first line, and that expanded access will certainly trigger a stronger volume growth. Stacy Ku: A quick follow-up then, Sandrine or Fiona. For HS, is the vast majority -- and this is obviously for the U.S., is the vast majority of coverage remaining at single-step edit access? Fiona du Monceau: Yes. So 2 out of 3 of the PBMs is at single-step edits. I would add also that, as you know, I mean, this is a market that's expanding along sort of 3 axes. One, for the moment, the diagnosis is extremely long. It's above 7.3 years. And so we're working on accelerating that so that patients get treatments quicker to biologics in general. Second, if you look at sort of the knowledge of the HCPs and then the number of HCPs willing to treat HS is expanding. And then there's a whole component around sort of patient activation. And this is a disease that comes with a lot of stigma; a lot of shame, unfortunately; and helping those patients come out and ask for better treatment. Currently, if you look at sort of the split bio-naive versus not, we're at roughly sort of 40-60. Operator: Our next question is from Naresh Chouhan from Intron Health. Naresh Chouhan: Both on BIMZELX, please. Just on the rheum indications. Now, the BE BOLD readouts we've seen come forward six months-or-so, have you assumed any acceleration in the rheum indications in H2 in your guidance? Obviously, your MSLs will be able to talk to the data, even if your reps can't. So just trying to get a feel for any potential upside, either included or not getting included in guidance? And secondly, just a bit more details on HS. Something, Fiona, you didn't mention was stay time, and duration or persistence for patients on NHS. Obviously, for Humira and Cosentyx, we see very short stay time. Just trying to get a feel for what you're seeing in the real world? I know you've got 3-year data out there, but in the real world, what are you seeing in terms of stay time on BIMZELX? And in your $5 billion market size estimate, are you assuming increases in stay time? Fiona du Monceau: Thank you for the question. So on the rheumatology indications, so we are expecting to accelerate in our rheumatology indication. We have a strong belief that the IL-17A and F plays a difference for these indications, particularly in the joints. And as I -- sort of I was mentioning earlier, the earlier you treat sort of with a strong medication, the more you prevent lasting damage, but once it has taken place, it's difficult to reverse. I would also say that you have a non-negligible portion of your psoriasis patients who do go on to develop psoriatic arthritis. And so we also expect sort of to have a spillover effect there. On your second question around sort of HS. Yes, we look forward to taking advantage of the duration of some of the other therapies that we see on our sides. We do see a longer persistence in for HS, and there is a slight difference between bio-naive and previous -- and switch. But all in all, we're -- we have a good persistence there. And then your last question around sort of the $5 billion, I think it's -- I mean, as I mentioned, it's a combination of seeing sort of this disease being more and more recognized both by HCPs, but also, by your generalists who are gonna refer much quicker to dermatology. It's about sort of patients being more active and feeling less stigmatized and sort of pushed to the side, and an acceleration on your diagnosis times. Thank you. Operator: Our next question comes from Richard Vosser from JPMorgan. Richard Vosser: One question please, on BIMZELX as well. I think, Sandrine, you mentioned a gross-to-net adjustment in the second half. I wondered if you could quantify that and maybe just give us a little bit more detail in the gross-to-net development from the second half of 2025 and into the first half of 2026, just to give us some color there as you increase the coverage? And then second question, just on bepranemab. Very good news getting a fast-track designation, but this is still a pretty high-risk area relative to others in development, so just wondering about the thoughts around partnership here to share the risk of further development around that product. Sandrine Dufour: Yes, so on the impact, indeed, so I said that in the second half of '25, we had a crew up of gross-to-net from H1 to H2, and it represents around 5% of our total BIMZELX, just to give you a sense. And then, you know, on the evolution from '25 to '26, we still benefited in the second half of '25 from this large proportion of unrebated scripts, and logically, as we are expanding the access, that will come with full price moving to net price, which are very in line with the ranking of the access coverage, so depending on the indications and depending on the payers, as you know, we have a mix of double-step edit, single-step edit, and first line, and so that's how it should evolve from '25 to '26. Jean-Christophe Tellier: And Peter, thank you for your question on bepranemab. So indeed, we share your view in terms of the risk that comes with Alzheimer's disease programs. So at this point, we're open to various ways to mitigate that risk. So far, we've been really focused on unlocking and addressing critical path questions of CMC and regulatory nature, and now that this has progressed well, we are looking at this de-risking, which is both an asset and a portfolio consideration. Operator: Our next question is from Xian Deng from UBS. Xian Deng: First of all, thank you for all the interactions and all your help, Antje, and wish you all the best. To my question, so just wondering in terms of HS, so just wondering -- thank you very much for the color in terms of the 40-60 split between bio-naive and refractory patients. But just wondering going forward, where do you expect as a main source of growth? So do you still have big bolus of patients that hasn't had either bime or Cosentyx, or is it more from switch from Cosentyx or even just naive patients, you're kind of -- all patients who are not seeking active treatment at the moment? Kind of linking to that so just wondering, when you mentioned the mid-teens CAGR for the HS market, linking to this question as well, so just wondering, do you expect this to be relatively linear or more back-end loaded, as you probably have to educate the physicians and everything? So that's kind of a, sorry, long first question. Second one, on galvokimig. So on ct.gov, it still says the primary endpoint is 16 weeks, but now you're saying you're doing blinded dosing to 52 weeks with top-line data in 2028. So just wondering would you be able to -- is ct.gov simply not updated or would you be able to potentially have a look in the middle and start Phase III before 2028? Fiona du Monceau: Thank you for the question on BIMZELX. I would say, I mean, it's a combination, and it's gonna happen, of course, over time. So first, it's about gaining market share in the IL-17 and moving that whole class sort of earlier moving from moderate to severe to moderate and as closely as possible in the pathway. Two is accelerating that diagnostic, so moving it from sort of 7.3 down to significantly lower. Three, expanding the number of physicians who are ready to treat HS, and then in parallel, of course, activating patients. So that's going to happen over the next sort of five years in a staggered way. Emmanuel, I'll hand over for galvokimig. Emmanuel Caeymaex: Yes. Thank you. And thanks for your question indeed. So the study is blinded for the entire 52 weeks, we would want to ensure that not to jeopardize the study integrity. It's a study where it's both a learned study and a dose-ranging study, right? We certainly want to make sure we get the full value of this investment. It's designed to inform us to take the best possible step in an area which is quite competitive, but also quite complex from a heterogeneity point of view. So with this, we're not going to move earlier, as per your question. Operator: Our next question is from Rajan Sharma from Goldman Sachs. Rajan Sharma: I've got a couple. Sorry, another one just on BIMZELX then and price. I'd just be interested to understand when you expect to reach a steady state on net price in the U.S.? Is 2026 sort of a step-change in the trajectory? And then within 2026 specifically, do you expect price to compress through the course of the year? I'm just wondering if any of that positive effect that was -- that you mentioned in the second half of '25 holds true into the beginning of 2026. And then second question was actually just on pipeline. So I noticed that you had the ocular myasthenia gravis phase III. As it happens, one of your competitors shared their phase III data this morning. They showed a 2-point improvement on the primary endpoint. Do you expect to show a similar level of efficacy, or is there room for improvement, and do you expect to use the same endpoint? Fiona du Monceau: So maybe first to answer your question on BIMZELX and the net price. As Sandrine was mentioning, I mean, versus last year, we'll have much less unrebated scripts or full price, as we've sort of negotiated more and more the access across our different indications. There is still more potentially to come, where we evaluate, of course, every decision sort of meticulously from a finance perspective on increasing access versus -- and increasing volume versus rebates. What we can tell you for the moment is, we've just increased by EUR 36 million, and we'll continue to evaluate that as opportunities and negotiations progress. Emmanuel Caeymaex: Thank you for your question on ocular MG. So I'll get back to you -- or our team will get back to you as to the endpoint. I'm aware of the news this morning, but I haven't gone into the details yet. What I can say is that from a generalized myasthenia gravis experience point of view, two things have become clear over the last years. Firstly, that anti-FcRNs really are used early, and therefore, going into ocular MG, where most of the patients start with eye symptoms, makes a lot of sense for the medium and long term. And second, we know from clinical practice that not only does RYSTIGGO provides a pretty robust efficacy that stays over time, but we also see that the cycle times are not too variable, relative. We believe that there's something with this medicine that will translate to ocular MG, and again, we'll get back to you as to what we can share in terms of the details of the study. Operator: Our next question comes from Charles Pitman-King from Barclays. Charles Pitman: I'd just like to also pass my thanks to Antje for all her help over the time covering the company. I think two questions on BIMZELX from me as well to maintain the theme. Firstly, just within the psoriasis indication, one of the things we've seen in some of our prescription data is that it appears BIMZELX has started to lose share versus other novel biologic peers over 4Q 2025, particularly against some of the IL-23s, so I was wondering if you could just provide a bit more commentary on if whether or not that's a trend you're seeing and what really explains it, and what your -- specifically, therefore, what your strategy is for trying to regain that share going forward to support your broad expansion of the BIMZELX sales? And then secondly, just in terms of competition, I mean, one of the other things we've seen very recently is that MoonLake has announced that they have been -- they've received a positive confirmation from the regulator that they can file using one of their Phase III and their Phase II data, with the potential that any of their label -- any label would therefore include numerically superior efficacy results, so I'm just wondering how you're feeling about the competitive dynamics from sonelokimab across HS and psoriatic arthritis, given their Phase II positive data? Fiona du Monceau: Yes, let me answer your question. So maybe there -- I mean, on the first one, so you'll see that we, over the last two weeks, we've had, 2 consecutive weeks with over 7.2. I think it's important to realize that January and a bit February has been sort of a -- there's been a lot of noise in the system for all products because of snow days, four days a week, and the general noise that you have in January as the new year kicks off. I think we -- you'll see that we've continued to grow from an IL-17 -- within the IL-17 class. And we look forward to having BE BOLD that reboots and gives us even more energy to continue to compete in the psoriasis area. If I take MoonLake, I would say, well, first, we are the only one on the market with significant data over all our head-to-heads and over the duration, if you include not only launch, but also all the clinical data that we've accumulated. They have shown some efficacy. It's been mixed results, and that information and that data will need to be included should they be able to get an approval. So I think you can't go in thinking that you can cherry-pick data. The FDA will expect to have the full package. And let's see how they do that and what happens there. But yes, want to reinforce that by the time they come on the market, we will have been there, we will have proven how effective our drug is, and our data is consistent not only within our indications but across each of the indications. Operator: Our next question comes from Sarita Kapila from Morgan Stanley. Sarita Kapila: Just on BIMZELX and coming back to HS, apologies. Could you comment on the market share evolution versus Cosentyx? Has this now stabilized? And how should we think about the broader HS market in terms of growth expectations this year? And are you to be confident that you can continue to meaningfully outgrow the market this year based on current scripts? And then the second one is on the change at the FDA with a single pivotal trial sufficing for approval. How might this influence dapirolizumab for SLE? Is there a chance for an earlier approval based on the current one positive trial? Fiona du Monceau: So let me start with BIMZELX, and Emmanuel, let me know if you take dapi or not? So first on BIMZELX, HS, I think you've seen the graph that I showed earlier, where we see sort of good progression with currently around 32% market share within the IL-17. Previously, back in July, Emmanuel shared data with you that was around the 25%. We have the better drug. The F component in the IL-17 really does make a huge difference to these patients, so it's our mission, both for the teams out in the field as well as us in the head office, to make sure that these patients are treated adequately with the best treatment option. I was speaking a few weeks ago with a patient who was in a clinical trial, who was on the placebo part, and he shared with me sort of the scars just from that simple 6 months period, and those are scars that never go away. So I think it's not only important, but it's our duty to make sure that we continue to progress this year in the IL-17 and lead the pack there. And I think from a sort of market growth perspective, as we mentioned, it's gonna continue to grow in the mid-teens. Between the effort of us and other players in the field, we are seeing that market continue to progress. Emmanuel, do you wanna cover dapi? Emmanuel Caeymaex: Yes, for sure. Thank you for your question. Indeed, we did approach the FDA with that question. However, it won't apply to dapimab yet. I think there's some intricacies around the secondary endpoints in the first phase III study as well as the phase II study, which makes that package not quite reach the level that would be acceptable today for going with a single Phase III study. Obviously, if we see more opportunities to cut the time, we'll seize them. For now, we're busy recruiting rapidly in the second Phase III study. Operator: Our next question comes from Charlie Haywood from Bank of America. Charlie Haywood: Charlie here with Bank of America. I have 2, please. First one, I'll keep it simple. BIMZELX '26 consensus is around EUR 3.1 billion, which I think if you annualize your second half sales, gets you to within 10% of that number, so How comfortable are you with consensus? And secondly, I think by my maths, your second half U.S.-based sales are around EUR 400 million. Given in second half, you had 2/3 of the big PBMs covered, which is likely the majority of volumes. Can you just help quantify of that EUR 400 million number, the absolute pricing benefit, sort of uplift you could have seen in second half that could reverse, as those patients become rebated? Sandrine Dufour: Yes, I can take this. I don't think we comment on consensus per asset. We typically don't do that. But overall, I think we provided the guidance. We -- '26 for BIMZELX is going to be a combination of strong volume growth and evolution of the net price. I wanted to call out the fact that in the second half of 2025, we had a bit of this true-up that you need to factor in when you look at how H1 and H2 dynamic comes in '26. And at this point, this is how we want to support and help you on the projection. Operator: Our next question comes from Luisa Hector from Berenberg. Luisa Hector: Of course, thank you to Antje. I just have a couple of questions. Could you comment on the U.S. formulary position in immunology in terms of any trend you are seeing towards basically parity access for all drugs and this leading to a bit of a shift to competition more in the doctor's office? Just wondered -- we heard it from a competitor. Just wondered if you're also sensing that trend. And then interested in your comment that CIMZIA are still seeing volume growth, and I just wondered is that across all markets? And are you, on the whole, expecting that TNF volumes will be stable to slightly growing in the future? Just thinking of that as a sort of a pool of patients switching to newer therapies, but overall, should we anticipate TNF stable to growing over the coming years? Fiona du Monceau: Thank you for your question on the U.S. formularies. No, so I wouldn't say that we've currently sort of seen everyone going to parity. I mean we still have sort of the double-step, single-step or first line or excluded in sort of the packages that -- yes, and how the formularies are set up for the moment in the U.S. On your question on CIMZIA, so we continue to see increase in growth for CIMZIA. I would say it's standing out from the TNF lot in general. So there's very different dynamics for the rest of the TNFs. And I do think it's really because of the uniqueness of CIMZIA and how it's PEgylated formulation and the impact it has on particular patient populations. Thank you. Operator: Our final question is from [ Rudy Lee ]. Unknown Analyst: Congrats on a strong year. Also want to add my congrats to Antje for your new journey. I have two questions. First is regarding BIMZELX. For psoriasis and for the rheumatology indication, how should we think about the penetration or market share in the total biologic market beyond just IL-17? And how should we think about the gross-to-net in the longer term? Second question is for FINTEPLA. I'm just curious about your current thoughts on the gene therapy competitor programs, including the ASO and AAV gene therapy for Duchenne syndrome. Apparently, at the same time, you know, there are a couple [indiscernible] drug, in late-stage trials. How would these new products potentially, I mean, change the market dynamics in the coming years? Fiona du Monceau: So maybe let me start with the gross-to-net. I mean, I think Sandrine has sort of mentioned it as well. So one -- I mean, we will see a difference between last year where we had quite a few scripts, medical exception at full price. Now you will see a net price or gross-to-net more in line with where our access coverage is, whether it's first-line, single-step or double-step edit as well taking into account, of course, that the dosages across the different indications and loading doses are different. Your question around FINTEPLA -- sorry, I'm just going back to my notes linked to the question that you asked. So your question around FINTEPLA and potentially future competition. Well, first, in general, usually competition increases the market and is a good thing for both patients and for us. I would say what we are seeing with FINTEPLA is really a strong impact. From an efficacy perspective, we've just, as Emmanuel mentioned, shared the outcome of the Phase III data for CDD, which reinforces not only the impact that we have on seizure, but also on the non-seizure outcomes and we hope to sort of further increase our data package and improving the efficacy and the benefits of that drug with our Rett syndrome indications. So I think that by the time that they come on the market, the wealth of data and the proven real-world evidence will support FINTEPLA as a strong option. Thank you. Antje Witte: So that was the final question for today. Thank you so much. Thanks to Jean-Christophe, Fiona, Sandrine and Emmanuel, of course, of my screen here. Thanks to the audience, you have been very patient with us. We went definitely well above the hour. And yes, thank you all for everything. I enjoyed every moment, and I wish you all the best. For every question that is open for any future interactions, you know where to find us. We are here, and we are going there to continue to serve you as good as we can. Thank you.
Operator: Ladies and gentlemen, thank you for standing by. I am Gelly, your Chorus Call operator. Welcome, and thank you for joining the National Bank of Greece conference call to present and discuss the full year 2025 financial results. At this time, I would like to turn the conference over to Mr. Pavlos Mylonas, CEO of National Bank of Greece. Mr. Mylonas, you may now proceed. Paul Mylonas: Good morning, everyone. Welcome to our fourth quarter 2025 financial results call. I'm joined by Christos Christodoulou, the Group CFO; and Greg Papagrigoris, Group Head of IR. After my introductory remarks, Christos will go into more detail on our financial performance, and then we will turn to questions and answers. As usual, I will refer to Greece's macroeconomic developments first, then turn to our fourth quarter results. and I will conclude with our guidance for the next 3 years, 2026, 2028. So let's begin. The Greek economy remains on a steady, upward trajectory, notwithstanding persistent global volatility amid intensifying geopolitical tensions with the EU appearing particularly exposed to ongoing structural shifts. Within this challenging environment, Greece has delivered not only a resilient performance, but also a more balanced and higher quality growth mix. Indeed, the recovery has become more broad-based with manufacturing, high value-added services and construction increasingly complementing tourism. The economy remains attractive to investment as gross fixed capital formation is projected to rise to 18% of GDP in 2025, the highest level since the onset of the Greek crisis. While foreign direct investment inflows also reached a record high EUR 12 billion in full year 2025. Moreover, the economy remains highly competitive. Exports of goods, excluding fuels, have withstood global tariff uncertainty, increasing in real terms by almost 5% in the 12 months, while tourism reached a new record high in the full year 2025, both gained market shares. Looking forward, economic growth and banking activity will maintain their positive momentum driven by: one, private sector balance sheets that keep getting stronger, underpinned by sustained profitability and a robust labor market. Two, a more supportive policy mix, particularly on the fiscal side, the substantial fiscal overperformance with a primary surplus significantly above 4% of GDP in 2025 sets the stage for a stronger fiscal stimulus in '26 and '27, mainly in the form of tax reductions. Three, approximately EUR 12 billion of RRF funds is scheduled to be injected into the real economy over the next few quarters, while up to another EUR 12 billion can be accessed from the remaining RRF funds. This influx is expected to boost public investment to record levels. Four, ongoing revaluations and collateral values with real estate prices currently 5% above their pre-crisis peak in nominal terms support private sector spending as well as investment. It is important to note that despite the large increase in real estate values, they are still 15% off their pre-crisis peak in real terms in contrast to European developments. All of the above catalysts are expected to enable the Greek economy to sustain solid growth even in an inherently volatile international landscape, growth that will be, for the most part, bank financed. Now let me turn to our financial results. Our full year 2025 financial performance has showed significant strength, having exhibited impressive resilience to sharply lower benchmark interest rates, which came down by almost 200 basis points from their peak. This performance has been the result of the confluence of a positive macroeconomic environment, our robust balance sheet characterized by superior capital and liquidity as well as our multiyear transformation with strong investment in human capital, technology and digital services. Despite positive revisions to our guidance in July, especially in the area of credit growth and fee income generation, we outperformed the revised targets. Specifically, our full year 2025 profit after tax before one-offs was EUR 1.3 billion, resulting in a return on tangible equity of 15.5%. Before adjusting for excess capital buffers, return on tangible equity would be 20% on a normalized capital base of 14%. Turning to the main drivers of our results. Net interest income resilience was reflected in the net interest margin remaining above 280 basis points, down by less than 40 basis points from its peak, benefiting from solid liability management and robust lending. It is important to note that net interest income troughed in the third quarter and is now on a steady upward trend. As regards to credit expansion, our performing exposures grew by a noteworthy EUR 3.5 billion, recording a double-digit growth rate on a year-on-year basis, far exceeding the upgraded guidance of greater than EUR 2.5 billion. Corporate credit continues to be the main driver of loan growth, up by 13% year-on-year. Moreover, corporate credit demand was diversified across a broad range of sectors, predominantly energy, transportation, shipping, accommodation and light manufacturing. A final point on the composition of credit. Encouragingly, the retail segment also offered support with solid growth recorded in small business lending, up 16% year-on-year and consumer lending up 7%, resulting in noteworthy market share gains in both sectors -- segments. Also, mortgage credit closed the year with a positive result on a net basis for the first time in 15 years, following a strong pickup in disbursements where we hold a 28% market share. Turning to commissions. Our fee business recorded double-digit growth despite the impact of government measures. The most notable contributor was a cross-sell of investment products to our large depositor base, resulting in strong mutual fund market share gains of circa 6 percentage points over the past 2 years and impressive investment fee growth of 70% year-on-year. It is noteworthy that despite these flows, household deposits maintained their high market share. On the cost side, we have kept a balanced approach, weighing efficiency as evidenced by a cost/income ratio of 34% with judicious sector lending investments in technology and people, which will provide relative advantages going forward. The completion of the bank's full migration to the new cloud-based core banking system marks a defining milestone in our multiyear transformation and growth journey, providing a modern technological backbone that enhances our agility and productivity, elevating our customers' experience. Despite impressive credit growth and the highest payout accruals in the sector, our capital position strengthened further throughout 2025, up by 50 basis points to 18.8% at the end year. The 60% payout equates to an ordinary distribution of EUR 0.7 billion, implying a total payout per share of EUR 0.77. On top of the EUR 700 million ordinary distribution, we intend to propose an additional capital distribution of EUR 300 million in 2026, which adds up to a total capital distribution of EUR 1 billion. The above proposals, subject to 2026 AGM and regulatory approvals, reaffirm our commitment to deliver superior returns to our shareholders. Turning to the business plan. We constructed our 2026-'28 business plan factoring in the favorable economic conditions, our inherent competitive advantages and our strong track record in transformation implementation. The resulting guidance is to attain a return on tangible equity of 17% in 2028 and enhance our earnings per share from the current EUR 1.38 to over EUR 1.70 in 2028. These achievements are based on a solid recovery in our profitability as we put benchmark rate normalization behind us, permitting credit and fee generation dynamics to lead top line expansion. Specifically, we anticipate robust and healthy credit net expansion of over EUR 10 billion over the next 3 years, complemented by a sustained high single-digit fee growth based on our improving cross-sell dynamics across investment, treasury and bancassurance products. The fee targets do not factor in any imminent developments in our bancassurance business. And to preempt your questions, I would like to ask you to have a bit more patience on what is happening on bancassurance. We're in the process of choosing a new partner and should have tangible news in a few weeks' time. Turning to operating costs. They will benefit from CapEx having peaked and FTE rejuvenation through the implementation of voluntary exit schemes. In fact, we are announcing a new VES in the next few days. As a result, the cost/income ratio will be 36% in 2028. And the final point, the cost of risk will continue to converge to European levels during the 3-year period as the outlook for asset quality remains benign. The 2026-'28 business plan also contains accelerated capital utilization while maintaining satisfactory capital buffers. During the 3-year period, capital generation from increasing profitability and existing capital buffers will comfortably support accelerated organic growth as well as higher shareholder returns. To that end, our capital plan targets a CET1 ratio of below 16% in 2028. These targets clearly indicate that our capital plan contains sizable distributions going forward while preserving our strategic optionality. To close, I strongly believe that 2026 is a year of great opportunity for NBG. The successful execution of our strategy during the past several years has been the main reason for our outperformance. To describe all the achievements of the past years, even in summary, would take too long, so I urge you to look at the relevant pages of the presentation on our transformation. However, it is very important to understand that significant necessary conditions have now been met which permit us to focus on reaping the advantages provided by these accomplishments. Indeed, significant costs, a concomitant management focus and operational risks are behind us. To this end, our goal has always been to increase shareholder value, which in the long run requires increasing our revenue base and in the event of inorganic growth, the creation of value through synergies. We have shown tight discipline in the use of our excess capital during the past several years and always search for the optimal choice to increase shareholder value, which includes increasing our distributions to shareholders. And with that, I would like to pass the floor to our group CFO, Christos, who will provide additional insight to our financial performance before we turn to questions and answers. Christos? Christos Christodoulou: Thank you, Pavlos. Starting with the key highlights of our profitability on Slide 22. In 2025, we delivered another strong set of results, comfortably meeting or even exceeding our upgraded financial targets. Our profit after tax before one-offs reached EUR 1.3 billion, translating into an earnings per share of EUR 1.38, absorbing nearly 200 basis points of benchmark rate normalization from peak levels. As a result, we delivered a solid return on tangible equity of 15.5% or over 20%, adjusting for excess capital, outperforming our full year guidance target. Key contributors to this performance have been the resilience of our income, supported by solid credit expansion and efficient liability management as well as double-digit growth in fees, while strong trading income and steadily normalizing cost of risk also contributed positively. Going into more detail, our net interest income declined by 9% year-on-year, in line with our expectations and planning. Strong credit dynamics and our effective liability management initiatives, including deposit hedges and MREL instrument refinancing absorbed most of the negative impact of base rates on our NII, sustaining a class-leading net interest margin above 280 basis points, in line with our guidance. Most importantly, the last quarter of the year marked a turning point in our NII, which edged higher quarter-on-quarter, as shown on Slide 26, aided by the accelerated loan disbursements, which led to an impressive loan expansion of EUR 3.5 billion for the year, far exceeding our upgraded guidance of over EUR 2.5 billion. The completion of our NII normalization cycle paves the way for lending dynamics to become the key net interest income driver going forward. Our fee income remained on a solid growth path, increasing by 10% year-on-year. This performance was driven by the corporate segment fees, up by 16% year-on-year, as shown on Slide 32, supported by strong loan origination. Retail fees absorbed the negative impact of state measures on payments as successful cross-selling yielded an impressive 70% year-on-year increase in investment product fees, becoming the key contributor to our fee income growth. As shown on Slide 33, our market share in mutual funds increased by 3 percentage points year-on-year and 6 percentage points over the past 2 years as we continued cross-selling fee-generating mutual funds, driving our retail funds under management up by EUR 2.3 billion, 35% higher year-on-year to EUR 9.3 billion. Below our top line, operating expenses were 7% up year-on-year as disclosed on Slide 34, balancing high efficiency with strategic investments in technology and in our people as our priority is to offer innovative products and high-end services to our clients. The increase in personnel expenses is driven by increased wages, variable remuneration to incentivize performance and productivity as well as the onboarding of new talent and skills rejuvenating our human capital. Our depreciation charges derived from our strategic capital expenditure in class-leading IT and digital infrastructure, spearheaded by our new cloud-based core banking system, already delivering results in our productivity, commercial effectiveness, digital offering and cyber risk security. Our G&As affected by seasonality in Q4 are primarily driven by spending that goes to improve our customer journeys and experience. Factoring all that in, our cost-to-income ratio settled at 34%, well within our annual target, also absorbing interest rate normalization. As regards credit risk charges, benign asset quality conditions throughout the year, complemented by sector-leading coverage levels across stages allowed our cost of risk to continue lower in Q4, settling at 40 basis points for the year, well inside our guidance, reaffirming our expectation for further normalization. Our robust capital position, as shown on Slide 24, was supported by strong earnings generation and forms a key comparative strength for MBG. Our core equity Tier 1 ratio increased by 50 basis points year-on-year to 18.8%, comfortably absorbing the increase in credit risk-weighted assets as well as our class-leading payout accrual of 60%, which implies an ordinary distribution of EUR 0.7 billion out of 2025 earnings, equating to a payout of EUR 0.77 per share. Our total capital ratio stood at 21.5% or 22.7% pro forma for our AT1 issuance in early February 2026, while our MREL ratio stands well above our MREL target of 26.7%. Reflecting our capital strength and our confidence in the bank's outlook, on top of accruing the highest ordinary payout in the sector, we intend to propose an additional capital distribution of EUR 0.3 billion in 2026, subject to regulatory approval in the April 2026 AGM. This decision reaffirms our commitment to keep delivering class-leading shareholder returns while maintaining strategic optionality for future growth opportunities. Now let me walk you through the highlights of our balance sheet summarized on Slide 23. As referred to earlier, we grew our performing loan book by EUR 3.5 billion year-on-year on the back of approximately EUR 8 billion corporate disbursements allocated across multiple sectors with a strategic emphasis on energy and renewables, tourism, shipping, manufacturing and construction as shown on Slide 28. Adding to this, retail lending continued to gain momentum throughout 2025, increasing by 3% or EUR 0.3 billion year-on-year. We experienced solid growth in small business and consumer lending at 16% and 7%, respectively, with both segments consistently gaining market share, while mortgages are also showing encouraging signs of growth. On the liability side, deposits remained on an upward trend in 2025, as shown on Slide 29, increasing by EUR 2 billion year-on-year on sustained inflows of low-cost retail core deposits, while time deposit migration to mutual funds continued, benefiting our funding mix and cost. Improving deposit mix with core deposits comprising 81% of the total stock and the drop in term deposit yields by 10 basis points quarter-on-quarter to 144 basis points in Q4 drove our overall deposit cost below 30 basis points, the lowest in the domestic market. As regards our superior liquidity and funding profile illustrated on Slide 31, our net cash position comfortably facilitates our balance sheet expansion and supports our NII and NIM. Our liquidity coverage ratio at nearly 240% stands amongst the healthiest in the euro area with our loan-to-deposit ratio settling at 66% at the end of the year. Moreover, we retained the lowest funding cost in Greece at around 60 basis points with deposits comprising more than 90% of our total funding. Now a few words on asset quality on Slides 35 and 36. Our group NPE stock of EUR 0.9 billion translates into an improving NPE ratio of 2.4% with NPE coverage exceeding 100%. At the same time, our leading coverage across stages by European standards comprises another strength of our balance sheet, providing a cushion during uncertain times. Supported by favorable asset quality trends, net NPE flows came at 0 levels in 2025, driving cost of risk gradually lower. Capitalizing a strong performance in 2025 and the proven track record, our 2026-2028 3-year business plan sets out a clear and disciplined strategy to accelerate growth, enhance profitability and increase shareholder returns with our key business plan targets disclosed in Slides 10 to 20. As already stated by Pavlos, we aspire to attain a sustainable return on tangible equity of 17% in 2028, driven by higher profitability and increased capital utilization, targeting an EPS of over EUR 1.7 per share in 2028 versus EUR 1.38 in 2025. This performance hinges on strong NII dynamics anticipated higher by 7% on a 3-year CAGR basis as well as fees growing in the high single digits even before factoring the positive impact from the prospective new bancassurance agreement, which we will communicate in a few weeks. Specifically, as regards to NII, it is expected to start recovering this year, even though the average Euribor is expected at circa 25 basis points lower year-on-year. With the full rate normalization impact behind us in 2027, credit growth should accelerate the NII recovery, driving it over the EUR 2.5 billion mark in 2028 with NIM settling over 290 basis points. Credit expansion is expected to exceed EUR 10 billion in the next 3 years, driven by corporates anticipated to grow by a high single-digit CAGR in the 3 years, led by large corporates, SMEs and shipping, as shown on Slide 15, complemented by international syndicated lending and structured finance transactions, diversifying further our loan portfolio. Retail loan expansion is seen picking up further through to 2028, contributing positively to credit growth and spreads, fueled by stronger market dynamics in mortgages as supply side issues are gradually addressed alongside further market share gains in consumer and small business lending. Fee income is expected to maintain the strong momentum, increasing at high single-digit rate throughout the period, supported by the cross-selling of products and services. In the corporate segment, loan origination fees will be topped by non-lending fee growth on the back of enhanced product offerings supported by our digital channels, delivering incremental product penetration. Retail fee growth will be supported by our strategy in investment products in line with wealth initiatives as well as continuous growth in card fees. As mentioned earlier, our bancassurance strategy, which will further support our fee growth is not yet implemented in the business plan numbers. Operating expenses are expected to grow by circa 6% on a CAGR basis in the next 3 years, balancing cost discipline with investments in technology and human capital with our cost-to-income ratio settling at 36% in 2028, comparing favorably with most EU peers, which have a large technology investment gap to cover versus NBG. Given high profitability levels, capital generation will remain strong, supporting accelerating organic growth and superior shareholder returns. As Pavlos stated, our intention is to utilize capital created from increased profitability as well as part of our existing capital buffers to consistently increase cash payouts using share buybacks as an additional shareholder remuneration tool. Our capital plan targets a CET1 ratio of below 16% in 2028, also preserving our strategic flexibility. Leveraging this solid performance and the strength and resilience of our business model, we intend to deliver a disciplined and value-enhancing capital deployment path, balancing superior shareholder distributions with maintaining the capacity to capture growth opportunities, positioning the bank for sustainable growth, greater innovation and long-term value creation. And with that, I would like to open the floor to questions. Operator: The first question is from the line of Benjamin Caven-Roberts with Goldman Sachs International. Benjamin Caven-Roberts: Just a few questions from me. Firstly, on loan growth. Could you just comment if there are any particular areas where you're seeing more upside risks and then also any downside risks? And then secondly, on capital, a very clear message around below 16% CET1, which gives strategic optionality. Could you just recap where you're currently seeing your internal CET1 target against which you're measuring that excess capital? And then what your order of priority is within your capital allocation framework between any extra M&A and further payout increase? Paul Mylonas: Okay. On upsides in loan growth, I think it's the big infrastructure projects of -- in Greece that are the upside risk. If they move faster and given the size of their tickets, I think that's on the upside. I really don't see any sector with downside risk in view of the economic developments that we're observing in Greece right now. So probably more upside risk than downside risk. On your second question on the internal -- our internal CET1, it's 14%. If we utilize the full AT1 capacity that we have, that could go down. Now between M&A and payouts, clearly, it's a bit of a question because it's the question is the quality of the M&A. If you have a high-quality M&A, which creates value, clearly, that would be the preferred way to go. If that doesn't appear, then it's the higher payouts. Operator: The next question is from the line of Mehmet Sevim with JPMorgan. Mehmet Sevim: I have just a couple of questions from my side. One on the NIM outlook. You're assuming a notable increase in NIMs through 2028. And I see that you're using also an assumption of a higher Euribor about 40 basis points average. I just wanted to check why that's the case? And secondly, how would this outlook change if Euribor were to stay flat and basically no changes in the outlook there? And would you expect NIM to decline? Or would you expect it to remain stable? And my second question is on the payout. Now obviously, it is higher than expected initially and that you've guided previously with the EUR 300 million special distribution. But at the same time, you have now issued an AT1 of EUR 500 million. So if I look at it, it seems like you haven't really decreased your total capital position. You've just replaced one with the other, at least partially. So can I ask what your thinking is when it comes to this? Now I understand your 16% or below CET1 guidance. But are you still quite conservative for the time being? And what's the rationale otherwise behind the AT1 issuance that you've done earlier this year? And maybe finally, the AT1 issuance as of the first quarter, will it bring down your target CET1 from 14% to 13%, given now that you've done it? Christos Christodoulou: Okay. Let me start from the NIM question. So just to clarify on the Euribor outlook, you use, I think, the graph on Slide 20, which has one decimal. Actually, our outlook for Euribor from '26 onwards is up in the area of 30 basis points. So a point to make there. Clearly, the dynamics for NIM and NII going forward, starting with 2026, firstly have to do with -- the average Euribor expected to go down by about 25 basis points. But the tailwinds that we have from credit expansion, a slight increase in our debt securities and to a lesser effect, the improvement -- the further improvement of our deposit mix and deposit costs will support NIM, which is expected to marginally go down in '26. And then given the full effect of the rate normalization ending in '26 with the average Euribor then picking up, we expect NIM to go up to over 290 basis points in 2028. And with regards to our NII sensitivity, our sensitivity is at EUR 35 million for every 25 basis points on an annualized basis. So that's the dynamics. With regards to the payout, yes, you are right that we've issued an AT1 at the beginning of February. Clearly, AT1 was an instrument that we haven't utilized so far. The decision to issue an AT1 was in line of us optimizing our capital structure, especially at times of favorable spreads and base rate conditions. So that was one of the drivers. And the other was to strengthen our position in rating agency assessments, especially in the context of Moody's CMDI application as well. With regards to our internal core Tier 1 target, yes, we are conservative. But as Pavlos said, to the extent that we are -- we have started to utilize this instrument and to the extent that we will go to the full effect of our budget, then absolutely, that 14% will go below 13.5%... Operator: The next question is from the line of Gabor Kemeny with Autonomous Research. Gabor Kemeny: My first question would be on your capital deployment plans, please. You're below 16% CET1. Can you please clarify what payout assumption is that based on? Is it the ordinary? Or do you include anything above that? That's the first one. The EUR 300 million, would you have a preference here between cash dividends or buybacks? That's the other one. And I would like to follow up finally on the NII outlook, which I believe is pretty backloaded. So low single digits in '26, 7% CAGR. Altogether, this implies more like 9% CAGR, I believe, more than 9% for '27 and '28. So just based on the rate sensitivity you mentioned, Christos, I'm not sure I would get to that sort of delta. So maybe you could elaborate a bit further. I believe you mentioned the securities income and some other drivers, which you expect to influence your NIM, please. Paul Mylonas: Let me take the buyback question for the EUR 300 million extraordinary. It will be solely buyback, okay? And it will be part of the -- it will be integrated into the normal buyback program that we have. Now the other 2, I'll let Christos. Christos Christodoulou: With regards to capital deployment, I think we have a Slide 18, where we suggest that we expect to generate profitability of around 10 percentage points over the 3 years. We are going to use that through -- for growth in the area of 350 basis points. And then our intention, including the EUR 0.3 billion that we are expecting to use through share buybacks in 2026 to go down to less than 16%, which implies use of capital for distributions north of 9%. So that's how we view our capital deployment going forward. And with regards to interest rates, I think I've implied that, yes, the growth in our NII in 2026 will be more modest compared to the outer years. That is solely affected by the fact that we expect Euribor -- the average Euribor to go down in 2026. So our guidance is for low single-digit growth of NII in 2026. And then, of course, it will accelerate so that we deliver the 7% CAGR that we are guiding in our pages. Paul Mylonas: And just to add on what Chris said about the capital deployment, you need to -- not to forget that there is an agreement for the regulatory overlay on the DTC of about 30% of the payout. So we think that as NBG, we are -- we have the capital depth to be able to handle the payouts that we're describing. Gabor Kemeny: Just a small follow-up, please, on the capital deployment point. So you have the EUR 300 million in there, obviously, but no more special distributions for the next 2 years. Is that correct? Christos Christodoulou: We don't define that in our waterfall. So any decisions for one-offs will be taken on an ad hoc basis every year when we update our business and capital plan. Operator: The next question is from the line of Robert Brzoza with PKO BP Securities. Robert Brzoza: Just a couple of them, but really quickly. The EPS guidance for 2028, does it incorporate the potential impact of buybacks on the share count? That's number one. Number two, the custody loan-related verdict, if you treat it, say, retrospectively, do you see any impact from that? Going next, the NPL Stage 2 size, it did bump up a bit quarter-on-quarter. Should we observe it? What are the trends here? And finally, your OpEx guidance of, if I'm not mistaken, 6% CAGR. Of course, you are starting from a very low base, low cost to income. But I'm just curious what's driving this? Is it more wages or still administrative and general spending? Christos Christodoulou: Okay. So I have 4 questions noted. So the first one is pretty straightforward. Yes, our EPS of over 1.7% obviously take into account the buybacks that we'll execute. Your second question on the custody law, I think we will not differentiate from what you've heard yesterday from the other 2 Greek banks. While we still wait for the script of the law to become available, given that we've disposed nearly all our exposure to this perimeter, this is -- even if the law has a retrospective effect, we don't expect this to be of any issue to our bank. With regards to the question on the Stage 2, you should not expect anything there. I think what we had this quarter, we had one account that was flagged as a significant increased credit risk, but there is no forbearance, any delays there. So we expect it to go back to Stage 1. So no trend there to be concerned of. And then your question on OpEx, I think we've tried to explain that in our remarks. Where we are spending money is investing in 2 things, in our technology. We've been doing that for the past 5 years. And as a result, you see the effect of that in our depreciation. So while our capital expenditure in technology has peaked, we are still seeing the effects of that in our depreciation. So that's one line that is affecting, let's say, the growth in OpEx in the next 3 years. And the other one, as we repeated quarter after quarter, is our people. We are investing in people, not just on wages, but also trying to increase productivity through schemes of variable remuneration. And also, we're trying to bring new talent to, let's say, fill in the gaps, given that it's a changing world, especially with regards to areas like technology and digital. Don't underestimate also things like cloud licenses, which are also affecting our OpEx through G&A. But I have to reassure you that especially with regards to the line of admin expenses, we are very disciplined, and we don't overspend in that line. It's just staff cost and depreciation. We believe that the 6% is a fair growth rate given the growth that we envisage to achieve as well as the spending in technology that we've been doing for the past 5 years. Operator: The next question is from the line of Ilija Novosselsky with Bank of America. Ilija Novosselsky: So I have one question on your NII assumptions with 4 components. Can you take me what do you bake in, in your estimates for, number one, the hedges. So do you expect that your hedges would be lower in the future? And do you expect that your NII sensitivity might increase as Euribor increases? Number two, do you expect that there is going to be any NPEs that have become reperforming entering your balance sheet? Number three, I can see in your NII breakdown that deposit costs has picked up a bit by EUR 1 million in Q4. Do you expect that your deposit costs in the future -- in the next 3 years are going to be stable or down or up? And number four, can you tell me what do you expect for MREL expenses? So do you think that your MREL expenses should be higher in 2028 compared to 2025 or lower? Christos Christodoulou: Okay. So let me start with the hedges. So clearly, it's a dynamic exercise. We've been repeating that every quarter. The way that we envisage rates to evolve in the future, the base assumption is that NMD hedges will go down gradually in the future. And with regards to your question on our sensitivity on NII, whether it will increase or go down, I would say that, that's mainly a subject of our balance sheet size. Other than that, we are always trying to optimize and reduce our sensitivity as we go along. With regards to RPLs, the answer is no. We have not implemented in our business plan anything with regards to reperforming loans, either on our loan book or on our NII. We will only do that once we have a tangible transaction ahead of us. With regards to your question on the NII deposit cost pickup in Q4, that was, I think, EUR 1 million is a rounding, but it's solely volume-driven nothing else. You've seen that our deposits picked up in Q4, and I think that's the reason for that. And with regards to the effect of our NMD hedges, Q3 versus Q4, we are at the same level. And lastly, on your question on MREL expenses. For us, the MREL instruments are something that will support the balance sheet growth going forward. So if you take out some opportunities we have for optimizing costs because of refinancings of existing MREL instruments towards the end of our business plan horizon, I think the expectation is that MREL costs, yes, will go up. Operator: We have a follow-up question from Mehmet Sevim with JPMorgan. Mehmet Sevim: I just wanted to ask one on the buyback. So I understand the EUR 300 million will be in the form of a buyback and then you have the other EUR 200 million in the form of a buyback. So basically, that is EUR 500 million announced for this year. Just wanted to confirm. And given that you're still running the buyback from last year, I think there is a residual amount left. And so far, the daily purchases are below EUR 1 million. So how comfortable are you that you can do that in the open market this year? Or is there maybe another methodology there? Christos Christodoulou: Okay. So first of all, the current program is running well. I think it's approaching 80% to completion. So we're nearly there. And the new buyback programs will start after the AGM of April, so sometime in June, I suppose. And we are comfortable having looked at the numbers with our consultants that, yes, it's without new, let's say, methodologies, as you suggested, we'll be able to tackle this. Operator: Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Mr. Mylonas for any closing comments. Thank you. Paul Mylonas: Okay. Thank you all for joining us for this full year and fourth quarter financial results call. Any further questions you may have, we're on standby. And I guess we'll see you in London in the big conference that's occurring there in March. So thank you all, and see you soon.
Unknown Executive: Good afternoon, ladies and gentlemen, and welcome to the AFC Energy plc Full Year Results Investor Presentation. [Operator Instructions] Given the significant attendance on today's call, the company will not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and will publish responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll, and I'm sure the company will be most grateful for your participation. I'd now like to hand over to the team from AFC Energy, John and Karl. Good afternoon. John Wilson: Thank you. Thank you, Mark. Good afternoon, everyone, and welcome to our presentation on our full year results for the year ending 31st of October 2025. So usual disclaimer that we put up for everyone to read in their own time. Moving on, by way of an agenda, we'll run through the business overview, talk through the strategic progress the business has made products and technology overview, what we're focusing on commercially, the results for the financial year, a short time talking about outlook, and then we will take questions from you all. So when we joined the business, and I've said this before, what we did was we really started to look at why the global hydrogen economy hadn't really kick started. And it was clear that it was being held back by cost and infrastructure challenges. So we set out on a journey to develop a business and a strategy that would unlock those challenges. So our cracker technology allows us to deal with the infrastructure and the cost and our fuel cell technology helps us deal with the cost implications of those generator units. So in doing that, the most important aspect for us is ensuring that this business is commercially viable without the need for government subsidies or incentives. We can't control government actions. So if the business can stand on its own 2 feet, irrespective of which government is in power and what the legislation is, then this is then a business that is, in our view, is investable as a proposition. So what is the business? And I'm sure a number of you have seen this slide before. So we can take ammonia molecules and using our proprietary cracking technology, convert that into hydrogen. That in itself is a business, and we announced last week that we will be selling hydrogen produced from our pilot site in Dunsfold to offtakers. We can also take that hydrogen and using our fuel cell generators convert that into electrical power. So for construction sites, for example, backup power, et cetera. And why are we doing that? It's down to the size of the prize. So if we look at the generator market, it's an enormous market, $18 billion of annual sales. And in the area that we've launched, the LC30, our 30-kilowatt units, up to 50 kVA, the addressable market there is around about $6.5 billion globally and there's a forecast CAGR of 7%. If we start to break that down by geography, the 3 areas that we are targeting, so Europe, the MENA region and North America, there's an addressable market there of over 280,000 units per year. So if we were to price our generators at [ $95,000 ], then that would be an addressable market of GBP 27 billion. So 1% of that market per year would generate GBP 270 million of revenue for our business at that price point. Moving on to hydrogen use, hydrogen production. You'll see there's significant forecast growth of hydrogen use between now and 2050. If we just look at the U.K. government target, which is yet to change, it may well change, but around about 1.6 million metric tons by 2030. If we had a 5% share of that market at GBP 10 per kilo, which is what we're offering through our Fuel-as-a-Service offering on our High 5 units, then that equates to over GBP 0.75 billion of revenue per annum. And most importantly, that equates to only 480 Hy-5 units. So without substantial numbers of assets deployed, we can generate significant revenue. Into strategic progress. So if we just talk through last year from the time that Karl and I joined the business, we joined in January of '25. We're looking a lot more fresh dates than we are now. But we came in with 2 key strategic priorities. One was to preserve cash to arrest the cash burn, which Karl will walk you through. The second was to create a strategy for this business that would realize and generate significant shareholder value. So the first thing that we did was we announced that we were stopping the construction build-out of our AR2 units because each one cost us over GBP 0.25 million of cash to sell. And we also set about looking to productize the technology that the business has. And so we launched in March the Hy-5 portable cracker at GBP 10 per kilo, and that development is very much on track. And as we moved into June, we previously announced we were looking to take 2/3 of the cost out of our fuel cells. We actually achieved or announced in June, we expected to achieve 85% of reduction in cost. But we also needed somebody, a partner to really build out those units for us. We don't have the balance sheet to build a large manufacturing facility and associated capacity to do that. So we partnered with Volex to manufacture those fuel cells generators for us. And we also announced at that time a joint development agreement with an S&P 500 company to develop a 4-tonne cracker for a particular application, and I'll talk a little bit more about that shortly as well. And what that served to do is really kind of validate the IP that the cracker has and that the business has. And then as we moved into July, we announced a joint venture with ICL, Industrial Chemicals Group Limited, for us to jointly produce hydrogen using our Hy-5 units initially at their site in Port Clarence. And strategically, that was very important for us because it's great to have cracker technology. But if you don't have any feedstock, any ammonia to crack, then you don't really have a business. And of course, being a chemical company, that gives us access to ammonia. So having reset the strategy and set out time lines for execution of that strategy, we went to the market to raise money to deliver it and successfully raised GBP 27.5 million gross to set us on our way to deliver, as I say, deliver that strategy. So then the second phase of hard work started, and that was really taking the business and the structure that we had and going about repurposing it, reorganizing it in such a way that we could set ourselves up to win. So we took GBP 1.5 million of cost out of the business, and we reduced the headcount by about 20%. We also bolted a front end onto the business, a commercial function onto the business through the appointments of both a Chief Strategy Officer and a Chief Commercial Officer. And the reason why we created both roles is it was very clear when we started to look for a Chief Commercial Officer directly in this space that has the Rolodex that would be required to understand what is going on and get us early entry points into the organizations that we believe are suitable for our technology. That commercial person just doesn't exist with a track record of delivery. So -- and given that Karl -- neither Karl or I are actually from this sector, we appointed Nick Walker, who exPeel Hunt analyst, who quite frankly, knows everything and everyone in this space. So the oracle of hydrogen. And alongside that, appointed a CCO from ABB, who ran part of their hydrogen business. We also and very importantly, created a project management office. So nascent technology businesses, R&D heavy businesses that are reliant on delivering technology often overpromise and underdeliver because they do not manage their projects as well as they should do. So that PMO office gives us insight on it in a real-time basis of what is being delivered? Is it being delivered on time? Is it being delivered on budget? And we also have a risk management framework around that as well. And obviously, the success of that is highlighted in the launch of the LC30 ahead of schedule. And a final point on this slide, in October, we supported TAMGO with Extreme E and Extreme H. We sent our 200-kilowatt unit fuel cell generator unit along with the team out to Saudi Arabia to support that. And that unit ran in the desert heat and the dust and the sand, producing 17 megawatts of power over the days that it was there with 100% uptime, which I think came as a bit of surprise to TAMGO in terms of that reliability. So that's last year. If we stop to talk through partnership updates before and then go on to talk about what we're looking to achieve this year. So as I mentioned, we announced an S&P 500 JDA partnership. We announced in November that the first stage of that was complete and the first stage was providing them with detailed analysis of the cost per molecule of hydrogen. So basically, how efficient our crackers are and the consumption of power in the generation of that kilo of hydrogen, for example, molecule of hydrogen. And initially, the agreement was we would develop, as I mentioned, a 4 tonne per day cracker. As our commercial teams that we've developed, our commercial front end that we've developed became much more involved in the conversation with their commercial teams, it became very clear that, that application, that single use case could be used and expanded significantly for multiple verticals. And what do I mean by that? So we were looking at a port-side application. If we start to look at certainly in Europe and the same applies in this country, as you start to move inland Tier 2 power consuming industries, let's say, Tier 2, so glassmaking cement factories, asphalt manufacturers that require 20 to 30 megawatts of power without a pipeline, a cracker at a port would not benefit them. And so the view of our S&P 500 partner that we support and we're working with them on, on a commercial basis now is working -- identifying and working with those types of industries. And the likelihood is that rather than a 4-tonne cracker it's going to be closer to a 10 or even 15-tonne cracker, which translates to 20 to 30 megawatts of power. So whilst we haven't kicked off the second phase of the development of the 4-tonne cracker, and it's unlikely that we will, the most likely outcome is that we end up developing a much larger cracker, 10 to 15 tonnes a day, as I mentioned. And the size of that prize is significantly greater because rather than one use case application, we're now looking at multiple verticals and industries that could use that cracker, and we would be cracking the ammonia at site. So we're very pleased with the way that, that is developing. We have biweekly calls with them to progress that. And as I say, the commercial teams are working hand-in-hand. And a point on -- and I think there's already been a lot of questions about the Phantom S&P 500 partner, who are they when they're going to be announced. We said at the time that we would be announcing who they were once we finish the second phase, which essentially, we've done the development work. We've got a contract in hand for a number of crackers and then they're comfortable with their name being released. The likelihood is it won't happen like that. I think the likelihood -- most likely outcome is that we will be announcing who they are much sooner than that because of the commercial association that we have and working together with some of these companies. So it's coming is the short answer to that. Moving on to ICL. So as we announced last year and updated in November, we're applying for permitting to operate our Hy-5 unit at Port Clarence. And importantly, the way that we're approaching this is not just locally with the environment agency in the Middlesbrough area. What we're focusing on is working with the EA centrally, so we can create a framework for future deployments of crackers. So what we don't want to do is have a Groundhog Day situation where we work with the environment agency locally, we get a permit for Port Clarence, then we come to do a second deployment somewhere else. And then all of a sudden, it's a case of, well, how do we do this? This process doesn't exist. So we're working on that central framework. But obviously, what we've done in the meantime is in parallel, discussed with the environment agency, receiving approval to change the permit that we have at our site in Dunsfold, so we can start to sell the hydrogen there, and I'll talk about that on the next slide. So that is working well. We also, last week, signed an agreement or announced the signing of the agreement with Komatsu. That's an 18- to 20-month $2 million circa $2 million project. It's actually more than $2 million. And the purpose of that is they're very large mining trucks. So they're the big 4, 5-story mining trucks. If you look on LinkedIn, Nick Walker's got a nice picture of himself stood in front of one. I think Mike Rendall's got one, our CTO as well. But those trucks, the engines cost between $0.75 million are absolutely huge. And what they're looking to do is determine whether or not they can run off a blend of ammonia and crack gas or hydrogen cracked from ammonia. And the reason why the cracker is needed is an ammonia engine burns very dirtily. So there's a lot of NOx, a lot of nitrogen-based oxidized emissions, which are not good for the environment. With the introduction of hydrogen, it burns cleanly. So you have a very, very small amount of NOx that you can kind of scrub out post burn. And so effectively, you can run that engine and it's 99.99% emission-free. So we've already done some desktop work. It's more than desktop work with a project that we received a grant for to convert a 250-kilowatt Volvo engine to run on the same basis. We've done that work. We've shared the information, the results of that with Komatsu, which is one of the primary reasons why they are going down on this journey with us. And Komatsu has already invested tens of millions of dollars in determining whether a hydrogen engine would be suitable for these large mining trucks and has determined it just isn't suitable because of the size of hydrogen storage that will be required, just isn't -- it's not able to put it on one of those large trucks. So a very exciting development. I'm not going to speculate on what it can lead to, but we see it as a strong promise for the future and a further validation of the cracker technology and the cracker IP that we have. Speedy Hire, as many of you will know, we have 20 units that we sold into the JV at the back end of 2024. We've had many successful deployments of those units, and it's really providing us with an understanding of the footprint that we require on a construction site or a deployment site what risk assessments need to be undertaken, how we get hydrogen to site. So that has been successful and continues to be so. And then TAMGO, after sort of a multiyear flotation, I think, is the right term that we've had with TAMGO, following the success of the 200-kilowatt liquid cooled unit in Riyadh in October. They're very keen to get an understanding of the LC30 once we explain to them that ultimately, it has the same engine, the same architecture, the same performance characteristics, albeit at a lower power. And following the launch of that, they're very interested in helping us showcase that and create commercial opportunities and take the partnership to the next level. And finally, in terms of Volex, we are continuing to work with them on the LC30 build. So the first 2 units we have built ourselves as AFC. Units 3, 4 and 5, Volex will oversee the build of at Dunsfold. And beyond that, it will be transferred to their facility for manufacture. So that's the partnerships. If we then roll into 2026 and the key milestones that we have achieved and expect to achieve. So as mentioned, we launched the LC30 in January, in February or just last week, in fact, the engine development work with Komatsu, also the approval of hydrogen sale and export from our site in Dunsfold. And the benefits of that to us are many. So firstly, it accelerates the revenue. We previously said we'd be expecting to generate revenues from that pilot cracker by the end of the first half of this calendar year, albeit that was going to be at Port Clarence. Now we're going to begin starting generating revenues from April, so we accelerate that revenue. Secondly, it allows us to train ICL operatives at our site in Dunsfold. Three, it allows us to demonstrate not just to ICL, but also to investors, our shareholders and to the market that there's offtakers for this hydrogen as we sell it. And three, there's also opportunities with our S&P 500 partner in this country where they have customers that are very keen on understanding how they can integrate cracked gas into their processes. So there's a lot of opportunity that is happening around that. And ultimately, it gives us flexibility around what we do with this cracker. Initially, as I said, we're going to move that to Port Clarence as really initially as a low-risk approach for ICL to engage in terms of a JV. We're going to be able to demonstrate that there are offtake requirements for that hydrogen in very short order. So whether we move it or not, we're not sure. It depends on the demand, depends on the Hy-5 deployment in Port Clarence, how quickly we can do that because ultimately, that pilot unit will be in time will be superfluous requirements as we move to the Hy-5s. So that's the cracking. If we then look at back to LC30, we have to put the unit through CE marking through regulatory approval, both the CE. We're also going to be putting it through SABER, which is for the Saudi Arabian market and for UL for the North American market. But we're focusing initially on CE. These things will happen in parallel, but we're focusing on the CE. We're unable to sell product until we have that marking, and we're anticipating that in the August time frame, which allows us then to sell units to customers in September. So we're looking at building units prior to then ready for delivery to customers from September and October. However, being prudent and ensuring that we protect cash at all time until we've got a real feel and understanding of what that demand profile looks like, we're only committing at this point to delivering 15 units, 1-5, 15 units through to the end of our financial year through to October 2026. That could change because you'll see there on that sort of. Is that magenta line? Sort of light blue line, the arrow. The key focus for the commercial teams from -- certainly from the launch of the LC30 is -- and also with the progress we're making with the Hy-5 is taking the pipeline that we're building that is expanding quite nicely and converting that into contractual orders. So we may well change that view in the next couple of months if we have very clear signals to a very strong order backlog for LC30 units. But as things stand right now, we are committing and scaling up to build 15 by then. In terms of capacity of what the medium-term capacity for LC30 units is, the limiting factor for us is availability of fuel cells, which is limited to 500 units per month. So that's 6,000 units per year. If we fill that capacity, that's obviously on a $100,000 a year -- sorry, $100,000 units about GBP 600 million of revenue. So we've got ample capacity that we can scale into very quickly. But as I say, just to stress again, at this moment in time, we are committing to having 15 units available for customers. And moving back into October, Extreme H, we'll be working with TAMGO. Again, we also expect to be showcasing a number of LC30 units as well as our 200-kilowatt unit to potential customers in the Gulf region at that time. And then finally, we are looking to commission our first Hy-5 unit with ICL import clearance in November. So a lot of delivery of technology, but most importantly, as I mentioned, the focus on building that commercial pipeline and converting it to contractual orders. We move on to product and technology. This is the LC30. I won't read all the words on the page, designed principally to replace the AR2 unit, the air-cooled unit that was designed for the Speedy JV. So it's gone to construction sites, can be used for EV charging and anyone that is coming to one of our demo days next week, we'll see this unit working in anger and also the backup power and things like events. The principal benefits of that unit versus the previous units are listed on here. But in summary, it will be an ultra-reliable unit that we have a warranty to stand behind because we're taking effectively an off-the-shelf unit that's been in use for as it says there, many million run hours. It uses 20% -- up to 20% less fuel than the AR2. The footprint is almost 40% smaller. The reason it's only 40% smaller is because we've designed this for 100-kilowatt fuel cell to fit in exactly the same chassis. So the LC100 when it comes, will be identical fit form and footprint as the LC30. The weight is reduced by half, and it also has an islet hook at the top, so it can be lifted off the back of a loader. It doesn't require a forklift and probably most importantly, as we start to look at addressable markets, the temperature range rather than being limited to minus 5 to plus 40 is extended to minus 20 to plus 50. So the benefit of liquid cooling gives us an ability to be comfortable deploying these units across all 6 inhabited continents. And then the reactor technology. So our IP for our crackers is built around the reactors that we have. So we have numerous IP filings in place for these. It is designed to operate over a wide pressure range. So we get a lot of throughput works with other purification technologies for fuel cell applications, so we can scrub out trace ammonia and post cracking, push the hydrogen into our fuel cells. It's very small, which is helpful because that also gives it low thermal mass and makes it very responsive. So we can effectively produce hydrogen on demand. This will heat up in 20 minutes. It's got very low electrical power consumption. It can utilize multiple heat sources, so it can actually run completely independently off grid, utilizing its own waste heat streams if required. And in terms of the progress of Hy-5, so as you'll see there, we've released new high-efficiency designs for prototyping filed further IP, validated our BOM costs as bill of materials, completed hazard assessments, very importantly, identified key suppliers and onboarded those, which is obviously something you look to derisk early new technology. And we have received a number of inquiries for Hy-5s despite the fact that the unit isn't physically available yet. And just a reminder why ammonia cracking is a lower-cost way of making hydrogen. The primary cost of producing hydrogen through electrolysis is electricity pricing. So electrolyzers efficiency range from 55 to 60 kilowatt hours per kilogram. So based on U.K. grid prices in this country looking at GBP 12 to GBP 15 to produce the hydrogen. That compares with our ability to produce hydrogen, if you look at low carbon, blue ammonia, which we can use, which is for any kind of U.K. government contracts, is around about GBP 1.70 a kilo. Once you add on a couple of pounds worth of electricity, our cost to produce is around about 25% of the cost of electrolysis. And the further benefit is our crackers are designed to be portable. They're decentralized crackers. So we can position them at the point of use or where the hydrogen demand is. So we do not have very expensive transportation costs that are associated with the movement of hydrogen, the issues of moving hydrogen through tunnels and the CapEx cost of very expensive tube trailers. We rely on standard ISO tanks that have been moving ammonia around for 50, 60 years. And moving on to commercial focus and priorities. So we're building out our channel for our fuel cell generators. So in the U.K., we obviously have Speedy Hydrogen Solutions joint venture with Speedy Hire. We're looking at targeting an entry point into the North American market. Also the Middle East, I've spoken about TAMGO. And we expect to reengage with ACCIONA once we have LC30s available that they can then put on test on their site in Madrid with a view to and generating orders from that. And the focus for that commercial team, again, there's a lot of repetition in this slide deck is to bring in orders for those Hy-5 crackers and LC30s. We're going to continue to progress the JDAs and JVs to the product and revenues and as well as building out the commercial team, we've also now started to add marketing resource. Now we have product. We need to have collateral -- sales collateral that goes alongside that technology. Then if we look at the geographical markets and the drivers, so we're targeting markets where there are policies in place because the barrier to entry is low and where there is a clear demand for the technology and for hydrogen. So U.K., EU, U.S. and Canada. And then in terms of those chosen markets, and this is a piece of work that we've done internally, but also with our S&P 500 partner. We believe, for example, when I mentioned the 10 tonne a day cracker earlier, but that would be suitable for the 4 heavier industries here. So we need industrial heat, steel manufacture, chemicals and cement as well as Hy-5 units, which are suitable for equipment rentals and for hydrogen mobility. And over to Karl for trading performance. Karl Bostock: Okay. So this year, you have seen that we posted a loss before tax of GBP 22.2 million. Now why that seems on the face of it, a big step backwards from last year's performance, which was GBP 4.8 million lower. Actually, the majority of the shift or more than the majority of the shift is around accounting rather than underlying trading performance, and I'll walk you through that in a moment. So in that accounting, there is GBP 12.4 million of noncash items. So in our profit and loss account, there are charges that don't actually cost us any cash, and that is an increase of GBP 8.4 million on the previous year. Again, I'll walk you through that in a moment. What we did spend, so we spent GBP 11.7 million on developing our technology. That's up from GBP 9.5 million in the prior year. And of that GBP 11.7 million, we capitalized GBP 5.2 million. The increased focus on development over other activities meant that we qualified for more R&D tax credits, which will come in, in the current financial year FY '26. And so we are looking to receive about GBP 3.3 million in sort of June and July time, which is an increase of GBP 1.4 million over what we received in the current year for last year. We went to the market, as John said earlier, and we raised net GBP 25.8 million. We also received GBP 2.2 million of government grant funding, which helped support the GBP 11.7 million of development spend. And most importantly, for this business is about cash preservation while we deliver the strategy. And we spent cash out of the organization before any financing activity, GBP 15.4 million. That is a reduction of GBP 11.2 million on what was spent in FY '24. And we'll walk you through how we did that and why we did that in a moment. We finished the year with the majority of our net fund raised in the bank, so GBP 25.3 million, and that gives us significant cash runway to do what we need to do looking forward, okay? So going back to where we started a moment ago, thinking about the accounting for our change in strategy. And just to recap, that change of strategy made us not want to build any more AR2 units. So we're not going to make any more sales. We stopped the development and focused our efforts on taking the cost out of that platform, which John just walked through, which delivered the LC30. And that, together with our Hy-5 gives the customer a TCO comparable to diesel. So 3 constituent impacts on our trading from a profit and loss point of view. We didn't make any sales. In the prior year, we made GBP 4 million of sales, but that was predominantly sales to the JV. This year, sales are negligible, only GBP 100,000. Because of the shift away from the AR2 platform and that change of strategy, we had ordered a significant amount of inventory that was set on the balance sheet at the start of this -- at the start of financial year '25, and we made the decision to write that off, which cost us GBP 2.6 million through the profit and loss account, but obviously, nothing in terms of cash because all that was paid for in the prior year. The other thing we look to do is to think through the impact of -- and this is an accounting -- it's accounting rather than any sort of relation or any -- sorry, this accounting rather than a formal agreement with Speedy Hire. We decided to essentially make provision for the cost of swapping out the AR2 technology with the LT30 at some point in the future. So the current technology works, it's fit for function. But as we look forward, we took the decision from an accounting point of view to provide for the cost of swapping those out. And why do we want to swap them out? Well, once we get to scale, we don't really want to have a commitment of maintaining 20 different units from the LT30 in the future. And so -- if and when we do swap it out, we've essentially the cost of swapping them out is recorded in the financial '25 number, okay? So there's no -- to be totally clear, there's no -- we haven't gone to Speedy Hire and said, "You don't need to pay us anymore." They still need to pay us. It's just a provision that we made in the financial statements, okay? So I thought it might be useful to walk through the bridge. So last year, we posted a profit -- a loss, sorry, of GBP 17.4 million. The decision not to make any more AR2s actually benefited us GBP 1.8 million versus what we spent in the previous year. We invested some of that in development costs, as I say, developing the LT30 and the Hy-5. When you look at the utilization of labor, actually, the nondevelopment labor has actually went down year-over-year. So that saved us GBP 1.8 million. And because of the focus on research and development, our tax benefit in the year is GBP 1.4 million. So when we compare on a like-for-like basis before accounting and noncash items, the loss that we made in the prior year was GBP 17.4 million and the loss in FY '25 was GBP 13.8 million. To that number, a one-off transaction is to write off the stock. We won't be doing that. That won't reoccur in the future. We've also made this provision to swap out the generators at some point in the future. That's GBP 2.9 million. Again, that's a onetime item. In the prior year, the business spent a lot of money on development and assets and the full year impact of the depreciation on those -- on that investment in the prior year has increased depreciation by GBP 1.9 million. There's no cash cost to that. And then finally, there's a GBP 1 million increase, GBP 0.5 million in the share-based payment charge and GBP 0.5 million in remuneration to the management team, which has been settled in equity, again, primarily to preserve cash. So that's how we walk from GBP 17.4 million loss in the prior year to GBP 22.2 million loss in FY '25. For a business in our stage of development, it's all about cash. So as I mentioned earlier, last year, the business consumed GBP 26.6 million in cash to deliver what it delivered. This year, that cash has been significantly reduced -- the cash burn has been significantly reduced to GBP 15.4 million. Also, as you can see, a big part of that is around CapEx. So last year, in FY '24, we spent GBP 3 million. This year, we limited that to GBP 0.7 million, the majority of which was already committed to before we joined the organization. Just switch to the next slide. So coming in, what we needed to do very quickly was get hold of cash and put the controls and process in place to limit the spend, why we took a step backwards, reset the strategy, get the business in the right shape and now and then reinvest in the new strategy. So if you look back at the 15 months, the average quarterly spend in the 15 months prior to us joining, the quarterly cash burn was just short of GBP 7 million a quarter. What we did very quickly is come and hit the brakes on that. John mentioned earlier, we stopped spending on any project that wasn't adding value, and we managed to reduce the quarterly cash burn down to GBP 3 million. So on top of that, we went through a program of looking at every single cost that we have in the organization and rationalized everywhere we could. That unfortunately left us in a position where we had to make some people redundant. That redundancy or people exiting the organization will save us short of GBP 1 million a year. We also exited 2 properties, one in Dunsfold, one in Germany, which again will save us another GBP 0.5 million a year. So the business is now set up, it's lean, it's ready to go. We have reinvested some of that money in the commercial front end that John mentioned earlier. And you'll see the tick up in Q4 in cash going out of the organization. That is primarily driven by the cost to execute the manning reduction plan and the shutting down of the sites. and GBP 1.3 million of cash out of the organization to develop the 2 products that John walked through earlier, which is the LT30 and the Hy-5 product. John Wilson: Okay. So just by way of a summary. So we feel we've made substantial progress with that strategic reset or the execution following that strategic reset because of the things Karl just walked through, the business is well capitalized to deliver the strategic initiatives that we have outlined. And I'll stress the point again, this year is all about as well as delivering the technology, it's all about taking that pipeline of opportunities and converting it to contractual orders, which will then start the sustained revenue growth that the business needs to see to begin to create shareholder value. Thank you. Unknown Executive: That's great, Karl, John. Thank you very much indeed. [Operator Instructions] I would just like to remind you that recording along with a copy of the slides and the published Q&A will be available via your Investor Meet company dashboard. Thank you to everybody for your engagement. We received a considerable number of questions ahead of today's event, and you've had again increased engagement throughout today's presentation. I know you've covered a lot of topics that were sent in ahead of today's meeting through the presentation. So hopefully, that's given a number of investors some visibility around their particular areas that they were looking at. But if I may, John, just hand back to you if I could ask you to read out some of the questions that we've got there today, and I'll pick up from you at the end. John Wilson: Dangerous giving me the iPad and control of this, but here we go. So first question, when are you going to make real money? Profit? So having worked in private equity, I can tell you the 2 aren't the same. You can have a lot of profit and be burning a lot of cash through financial engineering. But if I take the question on the basis that I think it's meant, ultimately, not to be too flippant, we need to generate revenues that are greater than our costs. That's ultimately when the business becomes profitable. We don't have any forecasts in the market. So what I would refer people to is the fixed cost cash burn we said is under GBP 1 million a month. Margins that we would aspire to are 40-plus percent margins. So on that basis, people can do their own kind of calculations to establish what revenue we would require to get there. And what else I can say on that is we're working as hard as we can, as quickly as we can to get there. Second question, Hi. Is all hydrogen revenue produced in partnership with ICL split 50-50? The hydrogen revenue we produce with ICL will be split 50-50. The hydrogen that we are generating in Dunsfold from the permit variation we've received will be AFC-only revenue. Third question, Hi. How long does it take to build one LC30 hydrogen generator? Karl Bostock: 85 hours. John Wilson: 85 hours. Next question. Is any type of fundraise expected or required in 2026? Do you want to talk about going concern? Karl Bostock: Yes. So as part of the audit this year, again, comparing ourselves to last year, last year when we issued the audit statement or Grant Thornton did, we had a material uncertainty, which essentially meant that there is -- there was a requirement to raise money in the period 12 months from signing the audit report. We've just signed the audit report this week, and we don't have that material uncertainty statement anymore. So in the notes that we built around the period that we looked at, it essentially says that by September '27, we either need a substantial order book or have some kind of fundraising event. And that's -- so for the next 18 months, we are in good shape, but that's the analysis that we've done so far. John Wilson: Thank you. Next question. How many kilograms of hydrogen does the new LC30 use in a 24-hour period running at full power? It's between 40 and 45 kilos. How many kilograms of hydrogen is one of our 200-kilowatt fuel cells use, it's almost 7x that. So 270 or thereabouts. Next question, what are the Hy-5 production targets for financial year '26 to '27? We've got to talk through. Obviously, we're looking to deploy the first one in 2026. And based on -- firstly, we have to have CE marking for that unit. So based on that and customer demand will depend on the units that are produce in 2027. In terms of capacity, we believe we've got capacity for one Hy-5 a week. So roughly 50 a year based on manufacturing Dunsfold, which we would not be looking at doing long term other than for the cracker reactors. Okay. Hang on, where have I gone here? Okay. Oh, you're deleting them as I'm reading. That's why. Karl Bostock: Yeah. John Wilson: I'm thinking where am I? Okay. I told you it was dangerous leaving it with me. Hi, what are the Hy-5 production? I've done that one, You haven't deleted that one, Mark. Okay. Apologies, very professional this. Has the Hy-5 unit been actually proven to work at that scale? So I'd refer you to the pilot site in Dunsfold, that has a theoretical capacity of 400 kilograms per day. The Hy-5, obviously, 500 kilograms per day. So the short answer is yes. Next question, how will AFC Energy improve its media visibility in the future to attract potential institutional investors, pension funds? So what the business needs to do in the first instance is move from being a speculative stock to one that is highly investable. So we need -- as well as setting out a clear plan of what we say we're going to deliver, we need to start delivering it. We need to start generating revenues. And once we have that, we will be attractive to other institutions. The register as it stands now has changed significantly over the last 12 months, particularly due to the fundraise. I think when we joined, it was around about 15% institutional equity positions. Now it's closer to 40%, albeit there's only one, I believe, that is over 3%. Next question. I think this is actually a statement that's been submitted by the Chairman. I have complete confidence in the management plans of ASC Energy and would like to thank them for their work. They still have a lot of work ahead of them. The whole secret is winning over the masses of ASC Energy and its products. They will manage it. Many investors believe in them. Thank you. Well, thanks, Gary. Appreciate that. Next question, do you intend to take Hyamtec publicly -- sorry, public independently in the next 3 to 5 years? If so, what will be left for ASC Energy? We've got absolutely no intention of doing that. We are a PLC. Hyamtec is effectively a brand of AFC Energy. So no. Next question, what is the current status of your collaboration with ABB? Well, there isn't one. I think we outlined or certainly stated in one of the IMC meetings that I've never personally had any conversations with ABB, they are a shareholder. They still hold, I think, about 1.7 million shares, but we've had no conversations with them. Next one, does our manufacturing partnership with Volex have the confirmed capacity to deliver 50-plus LC30 units and 10-plus Hy-5 crackers? So capacity for the LC30 units, absolutely. Volex will not be manufacturing the Hy-5. The Hy-5 is a miniature chemical plant. That's not something they're interested in doing. As I said earlier, we will be looking at manufacturing the cracker reactors for the first units, we will build the whole unit. And beyond that, we would be looking to outsource that. Next question. Has ASC participating in the same bidding process for the contract awarded to GeoPura? How does this affect ASC? So this relates to the lowers crossing and the announcement, I think, that came out on Monday, which is one of the worst kept secrets in the construction industry. I think we've known for about 3 or 4 weeks about that going to GeoPura. So no, we weren't. The tender closed, I think it was July 2024. It was before Karl and my time. At that time, we didn't have a product. We had technology, we didn't have a product, so we weren't participating in that tender. What does it mean for ASC? It's actually a real positive thing. And the reason it's positive is, firstly, it's government giving some commitment to supporting the hydrogen economy. So there's a commitment for hydrogen to be available for construction companies to use on LTC, which is very important, which means there'll be investment in hydrogen assets, which is very helpful for us because obviously, our LC30s are hydrogen assets. In terms of what else it means for us, it's really quite interesting because the price per kilo of hydrogen hasn't been disclosed. But again, being a sort of leaky industry, we think the price -- the headline price is GBP 9 a kilo, which we assume is based on GeoPura benefiting from a payout from the HAR1 scheme. There's been no payout as yet of GBP 9.50 a kilo. So if that is the case, it's -- I think it's 2,500 tonnes is the "contract." That essentially is a GBP 22.5 million value, of which the taxpayer, you and I and all the rest of us that contribute to the economy will be paying about GBP 24 million for them to deliver GBP 22.5 million worth of hydrogen. But I think what it further shows to highlight is the competitive advantage that our technology has. So if we, for example, were able to access that level of subsidy GBP 9.50 kilo, not only would be able to give away the hydrogen to the construction companies, we'd actually be able to pay them to take the hydrogen, and we would still be profitable. So it really kind of highlights the kind of disconnect between government subsidy in our view, certainly in my view, in particular, I shouldn't try and tar Karl with this brush, just get myself into trouble, not both of us, that funding OpEx for hydrogen is going to do nothing to reduce the cost of hydrogen because you're back to how is hydrogen being produced through electrolysis. It's the cost of power that's an issue, and that is not going to change. So the subsidy should be going towards investments in capital equipment, and we have the technology to have a significantly lower price point that drives that commercial viability. There's a couple of other questions. Are you as bullish on AFC prospects as you ever were on EKT or your other management roles? So EKT was a micro conglomerate that I ran for 10 years. It went from 5p to 65p, so 13 bagger and then sold part of that on again for about 3.5x more. No comment on that. I think this is a business that's got great opportunity. It's the reason why I joined it. It's the reason I persuaded Karl to come and join me as well. But watch your space on that. I guess final -- actually, let me just sort of scroll through. I mean someone is asking when the cash comes out. We just answered that. I'll take one final question off here. Okay. Will you take preorders for the LC30 units prior to getting the CE certification? Yes, in the short term. Unknown Executive: John and Karl, thank you very much indeed, and thank you to everybody for your engagement this afternoon, and we'll make any other questions available to you post today's meeting. John and Karl and I know investor feedback is important to you both. I'll shortly redirect those on the call to give you their thoughts and expectations. But perhaps John, a couple of closing comments and then I'll send investors for feedback. John Wilson: Yes. Thanks, Mark. Well, I think the final thing I'd like to say is to thank everyone for listening to us today. Those that have already invested, thank you. We appreciate that. Hopefully, it comes across that we believe in the business. We're doing everything we can to progress the fortunes of the business. And to date, everything that we set out to deliver, we have delivered. It doesn't always work out like that. The path to successful development of nascent technology businesses is nonlinear, but we're certainly doing everything we can, and we'll continue to do so. So thanks for the support. Unknown Executive: That's great. John and Karl, thank you very much indeed for updating investors. Can I please ask investors not to close this session. We'll now automatically redirect you so you can provide your feedback in order the company can better understand your views and expectations. On behalf of the management team of AFC Energy, I'd like to thank you for attending today's presentation.
Operator: Thank you for standing by. My name is Debbie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Miami International Holdings, Inc. Fourth Quarter and Year-End 2025 Earnings Call. [Operator Instructions]. It is now my pleasure to turn the call over to John T. Williams, Senior Vice President and Head of Investor Relations. You may begin your conference. John T. Williams: Good afternoon, and thank you for joining us for Miami International Holdings or MIAX's Fourth Quarter and Full Year 2025 Earnings Conference Call. I'm John T. Williams, Head of Investor Relations. With us today are Thomas P. Gallagher, Chairman and Chief Executive Officer; and Lance Emmons, Chief Financial Officer. We will also have Douglas Schafer, Jr., Chief Information Officer; and Shelly Brown, Chief Executive Officer of MIAX Futures and Chief Strategy Officer, joining us for the Q&A session following our prepared remarks. Our earnings announcement was released prior to this call, and we have published an accompanying slide presentation on our Investor Relations website, ir.miaxglobal.com. In addition, this call is being webcast, and an archived version will be available there shortly after the conclusion of the call. Our discussion today includes forward-looking statements that are based on the expectations, estimates and projections regarding the company's future performance, anticipated events or trends and other matters that are not historical facts. The forward-looking statements in our discussion are subject to various assumptions, risks, uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These statements are not guarantees of future performance, and therefore, you should not place undue reliance on them. We refer you to our earnings press release and filings with the SEC for a more detailed discussion of the risks and uncertainties that could impact the future operating results and financial condition of MIAX. We do not intend to update any forward-looking statements made on this conference call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law. During today's call, we will refer to non-GAAP measures as defined and reconciled in our earnings materials. With that, I'll now turn the call over to Tom. Thomas Gallagher: Thanks, John, and welcome to MIAX. We're excited to have you on board as our new Head of Investor Relations, taking over for Andy Nybo, who will turn his focus back to Corporate Communications. Thank you all for your interest in MIAX. What an extraordinary year 2025 has been, as we've achieved significant strategic milestones while delivering outstanding financial performance across our business. Today, I will provide high-level fourth quarter and full year results, update you on our business segments and discuss key strategic developments. Then Lance will walk through our financial highlights and our 2026 guidance. For the fourth quarter, total net revenue grew 52% year-over-year to $125 million. Adjusted EBITDA more than doubled year-over-year to $62 million, and adjusted EBITDA margin improved by 1,400 basis points to 50%. Q4 adjusted diluted EPS was $0.52. For the full year 2025, total net revenue grew 56% year-over-year to $431 million, and adjusted EBITDA more than doubled to $199 million. Full year adjusted EBITDA margin was 46%, reflecting 1,600 basis points of year-over-year improvement, while adjusted diluted EPS was $1.82. These impressive results reflect our ability to capitalize on elevated market volatility and drive continued volume and market share gains across our core business lines. Our market share in multi-listed options grew to a record 18.2% in the fourth quarter, up from 15.9% in the prior year period. This represents average daily volume of 11.1 million contracts, a 46% year-over-year increase that far outpaced industry ADV growth of approximately 28.4%. We have significantly increased our market share over the past few years and see additional opportunities for further expansion. And we'll continue to balance market share growth with healthy RPC levels. 2025 also brought several transformational developments for MIAX. Following on our successful IPO, we completed a secondary public offering in December with the closing of a public offering of 7.8 million shares of common stock, which consisted entirely of secondary shares. While MIAX did not sell shares or receive proceeds from this offering, it represents another milestone in our evolution as a public company and enhances our liquidity. In late '25, we announced the strategic sale of 90% of MIAX Derivatives Exchange or MIAXdx to Robinhood Markets in partnership with Susquehanna International Group while retaining a 10% equity stake. This transaction, which closed in January of 2026, provides MIAX with expedited access to the growing prediction markets through our retained equity position while also enabling us to maintain focus on our core product offerings. The strategic alignment with Robinhood and Susquehanna closely aligns with our approach of partnering with industry leaders to offer innovative trading products, and we're excited about the long-term value potential that our equity stake creates for MIAX's shareholders. Our MIAX Sapphire options trading floor in Miami that we launched in the third quarter continues to perform in line with our expectations and demonstrates the continued value of floor-based trading in today's hybrid market structure. We continue to build out new and innovative functionality to support the needs of our floor broker community and their customers, and we intend to roll out a number of additional enhancements in the first half of 2026. Miami's emergence as Wall Street South continues to accelerate, and we're proud to be at the center of this transformation as we look to scale our market share over time. Reflecting back on other notable accomplishments in 2025. The acquisition of TISE enables us to expand our international footprint, the launch of MIAX Futures Onyx and the completion of the new MIAX Futures clearing infrastructure allow us to provide the industry with a high-performance proprietary trading and clearing platform with state-of-the-art risk management capabilities. We remain very excited about our Bloomberg Index Futures products and plan to launch B100 and B500 Futures in the second quarter of 2026. While we previously communicated a February launch date, we recently made the decision to reschedule it to ensure we have the same reliability and performance profile on our futures platform that we pioneered in options markets. Importantly, we want to ensure the full ecosystem of participants are, in fact, connected to the new exchange on day 1. We will be introducing retail size contracts first to meet retail broker demand for access to products with low trading fees. We are also focused on offering products to meet emerging retail investor demand that allow them to hedge and efficiently manage exposure to equity markets. We maintain strong conviction in the strategic importance of these products to MIAX's long-term growth trajectory. Taking a broader look at several of our business segments. The options market environment in 2025 was exceptionally favorable for MIAX. Industry volatility remained elevated throughout the year, driven by a complex web of factors. While many businesses are volatility adverse, for MIAX, volatility creates increased demand for risk management tools and our technology infrastructure has proven its resilience during these high-volume periods. We expect elevated volatility throughout 2026, driven by geopolitics, domestic policy and political dynamics, tariff impacts and the evolving AI investment cycle. We're particularly excited about the rapid growth in new Monday and Wednesday short-term expirations in single stocks. This market segment has become increasingly important to retail and institutional participants alike. And our technology advantage with industry-leading throughput, low latency and deterministic performance positions us exceptionally well to capture this growing opportunity. We listed new Monday and Wednesday short-term options in 9 actively traded options classes, which we expect will contribute to both industry and our volume growth in 2026. Furthermore, we are positioned to benefit from an improving IPO pipeline and continued growth in structured products that use options as part of their strategies. Together, these should create additional trading opportunities and volume growth across our platforms. These trends, combined with our technology advantages, position us well to capitalize on the evolving options landscape. Turning to equities. Our equities business continues to evolve as our U.S. equity market presence creates strategic positioning to capture opportunities across market data and related asset classes. We have implemented an improved rate structure and reached breakeven adjusted EBITDA in the fourth quarter, demonstrating our commitment to operational efficiency. Our international operations continue to demonstrate their strategic value with the annuity value of this business becoming increasingly evident throughout 2025. We are actively working to maximize operational and revenue synergies across our TISE and BSX businesses, reflecting our ongoing commitment to optimizing our international footprint. As we look ahead, we remain focused on our 4 key competitive pillars: our differentiated technology, our broad range of regulatory licenses across multiple jurisdictions, our diverse and expanding product range and most importantly, our deep relationships with customers that allow us to develop the technology, services and products that support their evolving strategies. We are particularly optimistic about the current regulatory landscape, which creates exciting opportunities for us to expand into new products and services. On the operational front, we see opportunity to expand our market share on the MIAX Sapphire trading floor as we continue to enhance functionality to support demands from floor participants. We're experiencing strong growth in options products across our exchanges, driven by increased activity in short-term weekly options, the improving IPO pipeline and structured products and ETFs, all of which we expect to support sustained volume growth across the industry and on our exchanges. Perhaps most importantly, our collaboration and relationships with our members and industry participants remain strong and continue to be drivers of volume growth. These strategic relationships position us well to capitalize on market opportunities and continue delivering value to our customers as we execute on our strategic vision. Now I will turn the call over to Lance to provide details on our fourth quarter financial performance and 2026 guidance. Lance Emmons: Thanks, Tom, and good afternoon. We had an exceptional fourth quarter and full year 2025 across our business. I will briefly remind you of MIAX's revenue model before I jump into the financial details. We generate revenue from transaction and nontransaction fees. Our key performance drivers for transaction fees include industry trading volumes, market share and revenue per contract or share, which measures the average revenue we earn per contracts or shares traded. Also, as a reminder, we provide RPC and capture rates on a 3-month rolling average basis on our Investor Relations website. In terms of non-transaction fees, we generate revenue from access fees, which we charge customers to connect to our exchanges; from market data, which we earn through direct subscriptions and through our participation in the U.S. pay plans; and from listings fees, primarily in our International segment. Full year 2025 total net revenue was $431 million, representing 56% year-over-year growth. Adjusted EBITDA more than doubled year-over-year to $199 million, and adjusted EBITDA margin was 46%, a significant increase from 30% in the prior year period. This performance demonstrates our ability to scale efficiently while also continuing to invest in our growth initiatives. Q4 total net revenue grew 52% year-over-year to $125 million, while adjusted EBITDA more than doubled year-over-year to $62 million. Q4 adjusted EBITDA margin was 50%, up 14 percentage points year-over-year. Adjusted earnings nearly tripled year-over-year to $57 million in Q4 versus $20 million in the prior year period. Adjusted Q4 operating expenses were $62 million compared to $53 million in the prior year period. This increase was primarily due to higher compensation and benefits costs, driven by planned expansion of headcount to support our growth initiatives. Also contributing to the increase were higher investments in IT and communications costs due to the build-out of the MIAX Sapphire Exchange and new technology platforms we rolled out for MIAX Futures and BSX. Moving to Q4 segment performance. Our Options segment delivered strong results with net revenue of $107 million, up 46% year-over-year. Market share was 18.2%, up from 15.9% in the prior year period. This, along with elevated options industry volume, led to the MIAX average daily volume of 11.1 million contracts for the fourth quarter, representing a 46% increase year-over-year. Our Equities segment net revenue reached $6 million, up from $2 million in the prior year period, primarily due to higher net transaction fees from improved pricing. Equities capture was net neutral for the quarter as compared to historically inverted. Our Futures segment net revenue was $5 million compared to $6 million in the prior year period due to lower listings revenues and decreased transaction fees. The decrease in transaction fees was caused by timing of participant migrations to MIAX Futures Onyx and lower commodity market volatility, partially offset by the elimination of expenses related to CME Globex. In the International segment, net revenue was $6 million compared to $1 million in the prior year period, with the increase primarily due to the acquisition of TISE in June 2025. Turning to our balance sheet. Our cash balance at year-end was $434 million, and we had less than $2 million in outstanding debt. Also as of December 31, 2025, we have classified the assets and liabilities of MIAXdx as held for sale. Now on to our 2026 guidance. We expect full year 2026 adjusted operating expenses in a range between $265 million and $275 million, representing a 13% to 18% increase over full year 2025 or a 6% to 10% increase from our annualized Q4 2025. This accounts for increased headcount and technology costs to support our new product launches, higher public company expenses as well as increased company branding and advertising. We expect full year share-based compensation expense in a range between $27 million and $30 million. The year-over-year decrease is due to IPO-related accelerations, partially offset by new 2026 grants. We expect full year CapEx, which includes capitalization of internally developed software, in a range between $40 million and $45 million and depreciation and amortization in a range between $33 million and $38 million. On our tax rate, we expect to release our deferred tax valuation allowance during 2026, reflecting our ability to realize the benefit of our NOLs. Following that release, we expect our effective tax rate on adjusted earnings to be in the range between 27% and 29%. In summary, we delivered outstanding financial results in 2025 while making strategic investments in our technology platforms and expanding our product offerings. That, along with our strong balance sheet, positions us well for continued growth in 2026. I will now turn it back over to Tom. Thomas Gallagher: Thanks, Lance. As you can see, we are very excited about our recent progress and look forward to another productive year in 2026. We'll keep doing the things we said we'd do. We'll continue to leverage the strategic pillars you've heard me talk about before: our technology, our regulatory licenses, broad product range and relationships with our customers. These are real competitive advantages that will help us drive long-term shareholder value over time. Thank you again for joining us on today's call. We're now ready to begin Q&A. As a reminder, Doug and Shelly are here with Lance and me, so let's begin. Operator? Operator: [Operator Instructions]. Our first question comes from Patrick Moley with Piper Sandler. Patrick Moley: Thomas, maybe just starting off high level. You talked a little bit about it in your prepared remarks, but if you could just maybe give an update on your outlook for options volumes this year and how MIAX is positioned? And then on the market share side of things, you reported record market share in the fourth quarter. That's come down a little bit in 1Q. So just also wondering if you could talk through some of the dynamics there and how you expect market share to play out throughout the rest of the year? Thomas Gallagher: Thanks, Patrick. Really appreciate the question. I think that the market dynamics, as we are in Q1 here 2026, are going to continue to provide volatility. Issues surrounding the tariff, issues surrounding the midterms coming up and issues surrounding some of the tension in global politics, particularly the Middle East, I think, are going to lead to continued volatility. I also think that the presence of the short-dated expirations, which just came on the market in January are going to continue to fuel strong growth in our U.S. options marketplace. So I think you're not going to see, I believe, the kind of growth we had almost 30% growth in volumes in 2025, but I think you're going to see continued growth throughout the balance of 2026. Shelly, any comment on that from your perspective real quickly? Shelly Brown: Yes, Tom, thank you. And Patrick, thank you for the question. I agree that the growth in the industry will continue. The short-dated options in those 9 stocks, we're only a few weeks into that program. It's been successful so far, and there's certainly a chance that could expand going forward. With regards to our market share. October was an outlier in volume. While we were 18.2% for the quarter, if you look at the last 3 calendar months, November, December and January, it's been very consistent. We look at market share relative to capture, where our fees evolve according to needs within the market, but we're comfortable with the market share as it is. Patrick Moley: Okay. Great. And then as a follow-up, on the Bloomberg derivative products that you're rolling out in 2Q, you said that you were planning to start with retail size contracts and putting those on our retail platforms. Could you talk about just your conversations with those platforms, and maybe how many platforms you plan to launch on initially and how that will scale over time? Thomas Gallagher: I'm going to turn that over to you, Shelly. Shelly Brown: Thank you, Tom. Another great question, Patrick. I'm not going to talk so much about how many firms. There's a lot of interest in the retail firms in these smaller products. A lot of the growth in the futures markets over the last 2 years have come from these smaller retail-sized products. We're going to start with what we call our T&E contract size for both the Bloomberg 100 and the Bloomberg 500 Index, very focused in the retail market, working closely with the liquidity providers as well as the retail firms to come up with a model that works for the retail. And they're very excited about having competition in this space. It's traditionally been a market held by one competitor, and they're looking for competition in price and bringing our technology to that marketplace. Operator: The next question is from Michael Cyprys with Morgan Stanley. Michael Cyprys: Maybe just continuing with the B100 and the B500 Index options that you're looking to bring to the marketplace here in the coming months. Can you just maybe elaborate a bit how you're thinking about how you might make this model work for retail? I think maybe one of the challenges -- but maybe not a challenge from a volume standpoint. But just one of the, I guess, frictions maybe has been commissions on some of these products on the index side. Is there -- what's the scope for commission free? How are you thinking about economics between what you might capture versus what the brokers might capture? Thomas Gallagher: Michael, great question. And a centerpiece of our strategy for launching the B100 and the B500, particularly the minis or the Tinis is to get retail engagement. And if you look at someone like a Robinhood or someone like a Webull or a Ninja, they're all about cost of execution. And if you can get cost of execution for them down to something similar to what they enjoy in the options marketplace, where essentially their customers trade for free, I think you have a real ability to get quick adoption of a competitor to the S&P franchise. So I think we think about doing things that have not had to happen before, whether it's on CME or Cboe because they had basically a monopoly franchise on the S&P. So what we're going to try and do is come up with some alternative pricing mechanisms that will allow for these firms to enjoy extremely low cost of execution and then also provide opportunities with respect to strategies to engage with the market makers. Maybe 30 seconds for you, Shelly, on that side of it. Shelly Brown: Yes. It's about getting retail engagement in the retail -- as Tom said, retail has gotten used to trading virtually for free in the equities and options space. Without giving away my full pricing strategy, we believe we can work with the retail firms and engage the retail customer. And what I believe we'll see is growth across the industry, just like free trading and options spurred growth from 18 million contracts a day pre-2020 to 60 million contracts-plus in the most recent year. So we think the whole pie will grow, and we believe we have a very competitive product, and the fees will be very appealing for the retail firms. Thomas Gallagher: Thank you, Shelly. Michael Cyprys: And then could you maybe elaborate on what the suite might look like initially versus over time? Would you expect to launch with the 0DTE complex initially or roll into that, what that might look like? And then can you talk a little bit about the go-to-market strategy? How you're thinking about building the brand, the awareness, the investor education? What sort of resources are you putting up against that? Shelly Brown: Great question, Michael. So to be clear, we're starting to launch with the futures first. Futures will launch in the second quarter. The options will follow sometime later based on the take-up in the futures. You need a solid futures market for hedging purposes to support those options. Both the futures and the options will have a similar pricing strategy. Once we do list the options, we certainly plan to list short-dated options. Those have been extremely successful in other index products. I believe it's over 60% of the volume in SPX is short-dated options. So we certainly are planning to go down that path. You will see a very similar product suite across all products for both the Bloomberg 100 and the Bloomberg 500 compared to what's out there today with one of the key differentiators being all of our products will clear at the Options Clearing Corporation. Michael Cyprys: And then just on the investor education? Thomas Gallagher: In the investor education, we're going to work extremely closely with Bloomberg and also with the retail firms who are known for their great educational tools that they use, whether it's an NinjaTrader, whether it's a Schwab or whether it's a Robinhood. So we're going to work closely with the retail firms and then also with Bloomberg, who is very much aligned with us in this regard. Shelly Brown: Yes. It's a combination of getting investors to understand that you get very similar exposure with these products. What we believe with Bloomberg to be a better constructed product based on the deterministic algorithmic methodology for our stocks that will be added, deleted from the indexes without a committee bias. Add that to the fact that, again, we're going to be very fee-friendly, but we're going to work very closely with the retail firms to provide co-education. And then Bloomberg, of course, is involved. Operator: The next question is from Ken Worthington with JPMorgan. Kenneth Worthington: I wanted to dig more into the Monday and Wednesday options. Maybe what are you seeing in terms of activity initially? And you and your peers sort of launched at the same time, how is market share trending between you and the others? And are you seeing the technology advantage sort of accrue to your benefit in terms of share? Thomas Gallagher: Thank you, Ken. Great question. I'll start and maybe I'll talk to Shelly, who runs this business and turn to you about some of the volumes. But it's early right now, Ken. It only got listed on January 22, but we think the volumes in these names will come to us, but it's a bit early to tell. I think it really grows the pie overall for the options marketplace. And I'm very comfortable that we're going to get our normal cut of what we've been seeing in these 3 symbols. But Shelly, do you want to comment on what you're seeing so far? Shelly Brown: Sure. And thanks for the question, Ken. It's been very successful to date. Of course, we've only been through a few weeks of expirations, today being one of them. We're seeing very large volume in each of these 9 stocks on these Monday and Wednesday expirations, similar to what we've seen on the Fridays historically. We think this is very positive for the industry. It's still too early to say how big of an impact it will have on overall volume. I think it is worth pointing out that in these 9 stocks, our market share over the last several months leading into this program has been just over 20% compared to 17.6% recent volume overall market. So we do outperform in these classes before the Mondays and Wednesdays were introduced. We're seeing similar market share in those front weeklies. Again, it goes back to the technology that Doug's team has built and the risk protections. So we do outperform in those stacks, and we believe that this will help us outperform overall. Kenneth Worthington: Okay. Great. Maybe as a follow-up, when do we start to see the Tuesday and the Thursdays come online? And what do you need to see out of the -- I know it's just launched and I'm already asking that, right? What a j***. But given -- once you get all 5 days, it's different dynamics. So what do you think you need to see in the Mondays and Wednesdays to start to realistically consider asking for the Tuesdays and the Thursdays? Shelly Brown: Reasonable question, Ken. There's a couple of considerations here. One of the things we're doing is we're trying to avoid earnings days for these stocks. So we're going to be careful not to saturate the calendar too much. I would expect that going forward, expansion of the program would be adding additional stocks to the Monday and Wednesday program long before we had Tuesdays and Thursdays to these 9 classes. I think that having Monday, Wednesday and Friday gives us good coverage across the week. They only are listed out 2 weeks. So there's a limited focus here. But I believe the pilot -- or it's not a pilot program, but the program will expand across classes far before it adds additional days. If you remember back when Mondays and Wednesdays were added to the ETFs, primarily SPY, QQQ and IWM, they were Monday, Wednesday, Friday for quite a long period of time. But I think investor demand would be better answered by expanding the program to additional classes rather than adding the Tuesdays and Thursdays. Operator: The next question is from Jeff Schmitt with William Blair. Jeffrey Schmitt: You had guided to adjusted operating expense growth of 13% to 18% for '26. What does that assume for top line growth? Or I guess, how should we think about the sensitivity of that number to volumes? Lance Emmons: Good question. Yes, we don't -- it's Lance here, Jeff. Look, it's very hard to predict total top line revenue given that 60% of the revenue is transaction-based, so it's really based on market volumes. I will say there's certainly some sensitivity in those expenses, there is some discretionary investments that if volumes don't pan out the way we anticipate them to that we could peel that back. But nevertheless, we do have some planned investments in futures as well as some additional new product launches that's baked into that number. Jeffrey Schmitt: Okay. And then I may have missed it, but do you plan on -- still plan on launching crypto and event-based products later this year? Or where do you stand on those plans? Thomas Gallagher: So as you know, we announced that we recently entered into a transaction with Susquehanna and Robinhood, whereby we sold our stake in MIAXdx. So we now have accelerated access to the prediction markets. As it relates to the crypto markets, we're really focused on expanding our market share in the mature but robust options business and then executing the strategy that I've laid out for our new futures products, transforming MIAX Futures from a one-product agricultural exchange to a full-service financial futures exchange that not only caters to the institutional firms, but also the retail. So if an opportunity comes along that we think makes sense in the crypto area, we'll look at it, but it's not our primary focus right now. We have been in discussions with a number of folks, but it's not something I'm focused right now in 2026. Operator: The next question is from Patrick O'Shaughnessy with Raymond James. Patrick O'Shaughnessy: So you had some market makers participate in your secondary offering in December. Is there any evidence that they've shifted their market share at all since selling some of their shares? Thomas Gallagher: Great question. So we see no evidence of that whatsoever. I think that you should look at us as similar to our exchange peers. Our equity rights program that allowed the strategic members to get their position in our company through their warrants and possibly the exercise of those warrants helped grow the business in the early years. But what's really keeping these market participants trading every day is the technology that Doug built with the low latency, high throughput, extreme determinism and also the risk protections that Shelly and Doug worked on together. So to the extent that a member firm was to sell some of their shares in that secondary offering, we've seen no impact whatsoever in our market share or their use of our 4 options and equities exchanges. Patrick O'Shaughnessy: Very helpful. And then I appreciate that you're not giving a quantitative outlook for access fees and market data revenue in 2026. But can you kind of broadly speak to your expectations for how those revenue streams might trend? Thomas Gallagher: Access fees and market data, Patrick? Patrick O'Shaughnessy: Correct. How they would trend. Lance Emmons: Yes. Look, I think in terms of access fees, we did put in some fee increases in January of this year. We think that will add a couple of percentage points to some fee increases. And then we continue to see member adoption taking additional lines in that nature. So continued growth in that area. In terms of market data, we have launched some new products, particularly in the last -- actually in the first quarter that we think will continue to grow our market data, not just again, the share from the tape plans, which is mostly driven by market share of trades loosely, but also from our own proprietary market data offerings. Shelly, if you want to talk for 10 seconds just on the new market data offering we introduced? Shelly Brown: I don't know if I can only talk for 10 seconds. Some of the market data offerings are historical data and reports. There are several new reports out that are high demand. There's some both historical data available and ongoing reports. So it's been very good for us. We have several new reports in the pipeline. And it's again, high demand data that's very valuable in the industry. So we're mining our data and monetizing that. Operator: The next question is from Chris Brendler with Rosenblatt Securities. Christopher Brendler: Great job. I wanted to ask a follow-up actually on the fee increases that are proposed last week. Just some of the strategy and the thought process around the different categories here and whether or not you would have any impact on market share within your larger constituents versus your smaller customers? What's sort of the goal here? And how much elasticity do you think there is with some of these fee changes? Thomas Gallagher: Thanks, Chris. Shelly, do you want to take that? Shelly Brown: Sure. The primary fee change that you've seen going into March, we didn't change transaction fees. We did -- we had a small transaction fee change in January. The primary change you're seeing for March is we waived non-transaction fees for members on the Sapphire trading floor. And those members that have gone out to memorialize the fact that the waiver period ends the end of this month, this Friday, and fees will start to be charged on March 1. So that's the primary change for March. Thomas Gallagher: Yes. Our practice, Chris, has historically been that when we launch a new venue, we have no non-transaction fees for a period of time or much lower to try and accommodate firms as they connect and volumes grow. So that was really just an expiration of what I thought was quite a generous moratorium on fees that started in September and it's going all the way through to the end of this month. Christopher Brendler: That's fantastic color. Follow-up question is in a different area, and I'm not sure if this is relevant or not yet, but just thinking about how fast markets are developing and this push towards tokenized equities, does tokenization have any implications for MIAX today and possibly in the future? Thomas Gallagher: Yes. Great question, Chris. We currently have no plans with respect to tokenization, but we are evaluating potential opportunities from partners. As you know, obviously, we operate several markets across securities and futures products and internationally. So when the right opportunity comes by, I think we're well positioned to take advantage of this. But I want to be very clear, it's not our primary focus right now. But as a market disruptor from the day we launched our first exchange in 2012, I fully support market innovation. But for right now, it's not part of our current plan. And I also want to see what shakes out in some of the filings that have been made by our competition with respect to some types of tokenized equity securities. Shelly, any last comments in a minute or 2? Shelly Brown: Yes. I also understand that up to this point, the tokenization is focused on clearing of equities. Equities is a very small piece of our business right now. The majority of our business is options. There hasn't been talk about tokenization and options. And again, the talk of tokenization is primarily focused on post-trade clearing, not of actual trading. I'm not sure the technology is near ready for trading of tokenized securities on the chain. Thomas Gallagher: Yes, our reliance is on OCC in this regard. So that's kind of our view on tokenization right now, Chris. Christopher Brendler: That's fantastic color. Enough growth in the core business, you don't need to worry about it right now. Thomas Gallagher: Yes. Thanks very much. Thanks for the support. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Tom Gallagher for closing remarks. Thomas Gallagher: Thank you very much, Debbie. I just want to thank those of you that listened in today to our presentation. And I can't tell you how excited we are to bring to the marketplace our new financial futures products. From day 1 in working with Doug and our team, we never bring a product to market until prime time and everybody is connected. And we're really excited about the opportunity to demonstrate our capabilities as we move from options to cash equities into a full suite of financial futures products and primarily also taking advantage of the risk protections and the pricing strategies that Shelly, Doug and myself have developed. So really appreciate the support. It's been an exciting 6 months since the IPO. It's hard to believe it's been 6 months. But stay tuned for an exciting year in 2026, as we bring our futures products to market. So thank you very much, and have a great evening. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Claudia Introvigne: Good afternoon to everybody, and welcome to our 2025 preliminary results presentation. I'm Claudia Introvigne, as I think you already know me. I'm responsible for Investor Relations here in Leonardo. And today, I'm really pleased to have with me our CEO, Roberto Cingolani; and our CFO, Giuseppe Aurilio, who is at his first report here in Leonardo. We are pleased to present our preliminary results, which will be focused on 2025. Please remember that you are all invited on the 12th of March to our Industrial Plan presentation. when we will also present to you our 2026 guidance. So please bear it in mind in the Q&A session that will follow. Thank you. And now I will hand over to our CEO, Roberto. Roberto Cingolani: Thank you. Thank you, Claudia. Hello, guys. Nice to see you again digitally. As usual, we make the pre-closing the preliminary of the year, the Q4. And then in about 3 weeks, we will have a much longer session about the update of the new Industrial Plan. Somehow, this is the last Q4 we celebrate together. So it's a fairwell session, up to be back the day after the 12, of course of March. Today, we want to share with sample data. And first of all, let me acknowledge the fantastic work that we did with the new team with Claudia that you already met a couple of, I think, in the last report, the Q3 and with Giuseppe Aurilio, who was integrated immediately in the team. The transition was extremely smooth. Giuseppe knew very well the company, was in the company for many, many years, and we were extremely effective. So maximum satisfaction from my side about the progress of the work and the reporting with the new team. So let's see the numbers. Numbers for the Q4, though preliminary, they're almost exact, I would say, they are very satisfactory. Let me start with the comparison year-over-year. About orders, we were expecting something in the range of EUR 22 billion to EUR 22.7 billion. So that was the updated guidance, and we closed with EUR 23.8 billion to be compared to EUR 20.8 billion last year. So it's plus 14%. Concerning revenues, we closed with EUR 19.5 billion, plus almost 11%. The guidance was EUR 18.6 billion. Last year, it was EUR 17.6 billion. The EBITA is also remarkably growing. We closed EUR 1.75 billion, so plus 18%. Our guidance -- updated guidance reported EUR 1.66 billion. Last year, it was EUR 1.48 billion. The return of sales is increased by 0.6%. So we go from 8.4% to 9.4% (Sic) [ 9.0% ] this Q4. Cash generation also here, I mean, for the first time, we break the psychological threshold of EUR 1 billion. I think we finished EUR 1 billion plus some little money extra. The updated guidance was EUR 0.92 billion to EUR 0.98 billion. Last year, it was EUR 0.84 billion. And the net debt is reduced by 44% down to the level of EUR 1 billion. Last year was EUR 1.8 billion. So we -- I think we got all the results we had in mind, slightly better than the updated guidance. Let me make the story because this is the last Q4 in the mandate. And I think it's interesting to discuss with you the significant growth and the financial transformation that Leonardo underwent over the last less than 3 years. So orders have been growing by 38%. When we started our mandate, they were in the range of EUR 17 billion. Today, we are in the range of almost EUR 24 billion. Revenues were growing by 33% over the 3 years from EUR 14.7 billion to EUR 19.5 billion. And I think this is encouraging, but I think it's even more encouraging to see that EBITA and free operating cash flow were growing super linearly compared to the orders and revenues. As you see, the EBITA was rising from EUR 1.22 billion up to EUR 1.75 billion, 44% and the free operating cash flow grew by 88% from EUR 0.5 billion to EUR 1 billion. Now I think this is -- this deserves some consideration. First of all, let me remind you my usual gesture. At the beginning, I said orders, revenues, EBITA and FOC, we're not happy because the orders were growing, but the FOC was not growing properly. And the -- actually, the target was to have something like this. So the curve should have been kind of parallel. I think we are on the right track. For sure, orders and revenues are growing, but you see EBITA and free operating cash flow are growing faster. That means our recovery in terms of performances, efficiency, cleaning the portfolio and so on and so forth are now giving the right results. Concerning the analysis of the other KPIs, let's say, in the last 3 years, the net debt, as I told before, was going down from EUR 3 billion to EUR 1 billion. Actually, this 67% reduction comes from, first of all, the savings, the efficiency and the rationalization of the portfolio we did so far. It comes from the sale of the undermarine activity, that was. And on top of that, it comes from the higher cash generation that really allowed us to go down to a debt level that is unprecedentedly low in the history of the company, recent history of the company. The dividend, that's very important for us. When we started, we had rather modest dividend that was stationary for many, many years. We were in the range of EUR 0.14, 1-4, EUR 0.14 per share. This has been increased regularly every year. Today, we are at EUR 0.52 per share. So the CAGR was plus 275%. What is important for us is that the dividend yield now is aligned to the European average of the peers. We were below the lowest decade in 2022. And the CAGR of the growth of our dividend is much faster than the one -- the average one of the peers in Europe. So we are now -- we grew up by 55%. And what I would like to anticipate -- I mean, for me, this is very important. I would like Leonardo to be always attractive and satisfactory for our investors. This year, we're going to increase further the dividend. Of course, we are making the detailed calculation. This will depend on the net income. Very likely, we will improve kind of plus 20% because this will follow the expected increase of the net income. So anyway, this is very important for Leonardo because we have to be in the right range as a company with ambition. And of course, we want to reward our investors. Finally, the employees. When we started, we were about 50,000 people. Today, we are about 73,000 people. The growth is 22%. What is very important is not only the absolute number, but also the typology of people and the age and the gender. In the 3 years that we just finished now, we hired net 17,000 people, 1-7, 17,000 people. The important thing is that about 70% of those people are STEM. So they their own essentially a technology degree in science, engineering, mathematics, whatsoever. More than 20% -- more than 30% are women. And what is more important is that 55% of those are below 30, below 30 years old. That means that in these 3 years, we also started an unprecedented transformation in the human capital, getting younger people, much more technology oriented, which followed the portfolio transformation of the company because we need, by far, more STEM to be competitive in terms of new technology and new solutions for defense and security. So at the beginning of the 3 years, that was the picture. We summarized on the left, orders. This have been discussed already, revenues, EBITA, EUR 1.2 billion, free operating cash flow, EUR 0.5 billion. Dividend per share, 0.13, 50,000 people roughly, and the market cap was EUR 4.6 billion. Our portfolio, our matrix portfolio was relatively complex. We had in the air domain, all kind of aircraft and helicopters, not yet a sixth-generation fighter, a lot of electronics in all domain, land, air, maritime, space. And we had some starting Cybersecurity activity and very poor digitalization. So at the very beginning, 3 years ago, there were businesses that were in silos, not interacting very well to each other. So far from the modern multi-domain concept, interoperability concept that are becoming essential mandatory for the future defense. There were several unresolved issues in terms of performance and efficiency and capacity. The product portfolio was fragmented. We had to clean it substantially, also cutting development lines that were absolutely off core business. There was a very limited digital capability. I'm sure you remember this was one of the first point when we started our enterprise. Innovation was quite slow and maybe the confidence of the investors was not so high. Now over these 3 years, we were working quite hard. I'm not going to read again the numbers. Just reminding that thank you to your trust. We could go up in the market cap to $34 billion, and I thank you for this investment believing in Leonardo. But what is more important is that the matrix of products now is very complete. We cover the entire air domain with all platforms, manned and unmanned, which is very important. There was no unmanned whatsoever before. Electronics is getting -- is becoming the glue of all the platforms. Digitalization is transversal to all our platforms from digital twin to digital toolkit for manufacturing. AI, more than 2,200 people that are using AI in production and more than 200 developers of AI capabilities. We doubled our computational power and our storage with the new davinici-2 supercomputer. Land, with the recent agreement with Rheinmetall, the acquisition of Iveco, other agreements with KNDS, another company we are starting to discuss with. In land, we cover all the manned and unmanned platforms. Infantry vehicle, main battle tanks, wheeled and with tracks. Maritime, we own absolutely the control of all the combat system of warship. Space, we started our constellation. We developed with a lot of effort, a new division, and now we own the entire spectrum of satellite services applications. And as you know, we are discussing the constitution of big company at European level with our peers, Thales and Airbus. And Cybersecurity underwent a strong impulse that you've seen from the numbers. But later, Giuseppe will give you more details. So what happened in those 3 years? New product and portfolio rationalization that was essential to complete the matrix. Without this complete matrix, we cannot be in the multi-domain as a leader and not as a followers. We made a number of strategic partnership and joint venture and selective M&A acquisition. This part is what we -- you remember at the beginning, we presented as our inorganic growth plan. The strategic partnership are bringing in very good results. We now have all the platforms for drones. By the way, I anticipate that in April, we will launch our first drones from the Ronchi dei Legionari plant in collaboration with our friends in Baykar. GCAP, everything, this is -- the Edgewing company has been constituted and we are up and running. Actually, I think this is the last big consortium left in the international landscape. So we're in a very good position. Bromo for space, I already mentioned, selective M&A moves, especially in the field of Cybersecurity we're very convincing. We now own in cooperation with our partners, Zero Trust capability, and we are developing very quickly the portfolio of Cybersecurity. We accelerated the digitalization in a way that has never been done before, including the doubling the power -- the global power computation and storage that we have with the company. We have launched the capacity boost program. I'm happy to say that the capacity boost program has now reached a maturity point. We have more than 300 manufacturing and production pilot programs, and there is a team of about 100 people distributed in the company that are working directly onto the production line. So this went from theory to production line in about 6 months. And then, of course, we are pursuing our disciplined capital allocation program. This is fundamental. The numbers are good. The net income is good, free generation -- free cash generation is good. Debit is under control. This is the time to make a very ambitious but disciplined capital allocation to accelerate further the growth of Leonardo for the next years. So at the beginning, 3 years ago, we had a rather complete portfolio, little digitalization in that some Cybersecurity was the only thing available. And of course, we knew at that time that was very important to create the capability for a multi-domain technology. Now actually, after 3 years with the effort we did, we are able to face the market with a very complete portfolio. There is everything, from the constellation to all the manned and unmanned flying systems to all the land manned and unmanned flight system, entire suite for global combat system in the ships. And the space has been substantially improved in terms of data analysis, constellation, ground stations and so on. On top, high-performance computing and cloud for AI generation has been improved substantially. Cybersecurity has been reinforced and it's growing fast. And as I said before, the constellation is there to provide data and supervision. In the end of the day, we said 3 things 3 years ago, bullets and bytes. At that time, it sounds like a very exotic statement, but I think now it's commonly accepted everywhere in the world. A large part of the effort in defense goes through digital technologies. coupled to bullet technologies, let's say, meta-mechanical platforms. The second message was no one can make it on its own. So joint ventures, acquisition alliances are fundamental to accelerate the response towards the dramatic demand that we have on the market and also to facilitate the creation of a European space of defense, which is, before being political, this has to be industrial. And finally, we are preparing ourselves to face a real challenge over the next decade and possibly more than one decade, which is passing from the [ bare ] defense, which means essentially weapons and weapon system to a much more complicated global security approach, which should defend our countries by the hybrid wars. So no matter whether we will have conventional wars in the next decade or all the wars will finish, and we will have another kind of war, which is a cyber war, safety, security of the infrastructure, energy security, food security, all those things will cause damages and economical losses that are incredibly high. So we are preparing Leonardo ready to face both challenges. This will be the content of the new plan, the updated plan that we will introduce to you guys on March 12. I don't say more. I cannot spoil more. There will be numbers, there will be forecast, but of course, there will be strategies that will design, will pave the way to the future of Leonardo. I conclude before giving the words to Giuseppe, with a bit of sustainability. I'm very proud to say that meanwhile, Leonardo was growing quite fast in terms of group revenues. So basically, in a few years, we grew up by 40%. You -- well, of course, consider that this was the COVID time. So that was a very complicated period. Let's say, most of the growth was in the last 3 years, as I said before. We were able to work quite effectively on water withdrawal, waste production and reduction of emission by Scope 1 and Scope 2. And you see how counteracting are the -- is the growth of the business compared to the improvement in terms of sustainability, Scope 1, Scope 2, waste produced and water withdrawal. Those are the numbers, if you like to see them. And on top, the workforce, as I told you before, was increasing substantially, improving diversity and improving the global fraction of young people below 30 and also reinforcing the innovation because today, we have reached approximately 20% increase year-over-year in innovation. So today, Leonardo can safely state that we invest 15%, 1-5, 15% of our revenues in R&D, which is actually the safest way to be very competitive in the future at the level of the best companies in the world. Now the -- what we did so far has given a very good results in terms of ESG rating. In this radar plot, you see Leonardo now a day. Those are the main ranking that I'm sure you're familiar to, so I'm not taking time to go through them, where we are always in a very good situation. And this curve is the radar curve average of the peers. So it seems that Leonardo has gained a very prominent advantage in terms of sustainability of the business compared to the peers. Of course, the core business is to make the best technology ever, but also being sustainable is very important. Now before concluding and giving the stage to Giuseppe Aurilio, I want to anticipate 2 things that I'm sure you're going to ask me because I promise you to give some important update about Aerostructures and about Iveco. So I'm going to do this now. Happy to answer your question, of course, but I think it's good that I anticipate the core. So concerning Iveco, -- the closing, we confirm the closing by March this year. So we're very close to accomplish the acquisition -- to finish the acquisition. It's -- we are very happy in terms of industry opportunities, wheel and track the systems. The demand is very strong. We are delivering already to the Ministry of Defense, the early machines with Rheinmetall and the capacity will increase, thanks to the Iveco absorption. Concerning the trucks, our colleagues in Rheinmetall are now testing the situation with the antitrust, of course. So this is a mandatory step. So we will give them approximately 6 months of exclusivity in order to check how this can be developed. Anyway, we're going to close because the agreement is that we close, we are in a hurry to increase our capacity. The truck business itself is a truck business -- is a business that has a rather good margin, 12% to 13%. There is absolutely no warning, and there is quite an interesting backlog of orders. So we look forward to see what the antitrust analysis that our colleagues in Rheinmetall will do together with the Leonardo team. And then we will decide how to proceed by, I think, by the mid-'26. There are also other potential companies interested. But as we told you since the very beginning, we try to pursue the strategy with Rheinmetall, wait for the antitrust and then make a decision. There is no worry at all whatever will be the outcome of those analysis in the next few months. Concerning Aerostructures, I have news that are important. So we -- I was personally visiting the top management of our counterpart, potential counterpart. They still ask some confidentiality for 6 months, but I can tell you where we are in a very detailed way. So our stand-alone plan was accepted and evaluated very well by the partner. We evaluated the stand-alone plan of the partner, which is very interesting. The idea is to create a joint venture, which is going to be something like 50-50 at the beginning as an international company. The brain at the beginning stays, of course, in Italy, but we push substantially the production because our partner is both financial and industrial, and they have a strong demand of components for civil aviation, but also for military aviation, rotorcraft and in the near future, potentially also space. So this is going to be a gate towards a new global company that starting with Aerostructures is going open to big markets in the, generally speaking, their domain, aerospace domain. Everything is ready. The due diligence lasted 14 months so far, there were approximately 70 items, 70 assessment lines. About 7 should be finalized this month. The others are completed, green spot, so they are done. Our partner is waiting for the confirmation that some incentives will come by the local ministers that will complete the financial plan. And the commitment because the exclusivity is given up to June is to sign before that date. I think industrially speaking, we finished our work. Our customers, so the main builder are aware of that. We, of course, confirm at the very beginning, we will keep absolutely the quality as usual in our plants, while we transfer some of that technology, some of those technologies in the partner company, in the partner plants. So we expect a very smooth transition, quite an announcement of the business which is going to be -- because it's going to be a global player, not a limited division, let's say. And I expect also to see a positive impact already in the 2026 balance sheet as soon as we complete. I can't say more details because confidentiality is a primary requirement for our partner. But I think I gave you a clear picture. You know where we go, and you know that 95% of the job has been done. Thank you very much for your attention. I give the stage to Giuseppe for the financials, and then we'll be happy to answer your questions. Thank you, guys. Giuseppe Aurilio: Thank you, Roberto, and good afternoon to everyone. I'm very pleased to be here presenting our full year results, our strong performance for the year and looking forward to meet you, as many as possible of you in Rome when presenting our updated Industrial Plan. Let me start with some initial consideration as I'm now serving as CFO of Leonardo since 3 months. So as Roberto was saying, the trans -- my transition was very smooth. I found a very strong management team and a very strong team. So this is helping me a lot in understanding the complexity of our business. I found a company and a group which has a very clear strategy. I was impressed when reading back all the papers that we were presenting to the market how linear is the connection between what we said at the beginning of the 3-year mandate and what we have been doing during these 3 years. And I found also a group which has transformed a lot at a very quick pace. I see from a financial point of view, the difference in terms of profitability and cash flow generation. As you were seeing where Roberto was presenting the results for the 3 years, the increase in EBITA and free operating cash flow is much bigger compared to the top line. This means that we have been doing a great job in recovery efficiency and improving cash flow generation. So very strong performance, as I said, we exceeded all the guidance in all the KPIs. So orders are around EUR 24 billion this year, driven by successful export campaign. We will see when discussing about the divisions that this increase is spread over all the divisions. Of course, there is a focus -- a specific focus on Aeronautics because it's where we got the Kuwait service order follow-on very big order in Kuwait. Revenues were at EUR 19.5 billion, so well above our guidance. And the same for EBITA, EUR 1.75 billion. So the EBITA increased both for the volume effect, but also because we recovered profitability with a return on sale up to 9% from 8.4%. So 60 basis points up. Free operating cash flow was above the EUR 1 billion threshold, which was impressive to me. If I think back about my first period in Leonardo, I was also in the CFO department, we were struggling every day on cash flow generation to improve, but with the level of the target, which was completely different. So being above EUR 1 billion is a challenge -- was a challenging target, and I'm very happy about these results. And this has led the debt -- net debt down to EUR 1 billion. Of course, we have here the positive impact of the cash flow generation for the year, but also the proceeds from the disposal of the UAS business early 2025. So as I said, we are growing. We are continuing to grow it, but increasing profitability and cash generation. So let's focus on the orders. For the year, orders were up 15% year-on-year with total backlog at EUR 47 billion. As you can see, the book-to-bill was above 1 in all the division at 1.2 at group level with a very strong increase, as I said, in Aeronautics, where we have the effect of the extension of the support service contract for the EFA Kuwait, but also very good momentum. So new orders on trainers, C-27J. And of course, we have strong opportunities also for the future. Defense Electronics, we see there is an increase of 5%, 8% if we look at Europe, you know that inside the Electronics Defense, we have Europe, U.S., DRS plus the contribution at least at EBITA level of our JVs. So Leonardo DRS was negative year-on-year, but just because of the exchange rate of the translation of the dollar, which was negative. Otherwise, it will be positive by 4% compared to 2024. Helicopters market a growth of about 5%. So Here, the growth was driven also by the customer service activities, which is very important in our strategy as it is part of the road map we have to increase profitability in helicopters, and we will see later on some results on that. Finally, so we are growing a lot in our 3 bigger pillars, electronics, helicopters and aeronautics. But I'm happy to highlight that we are above EUR 1 billion orders per year also in cyber and space, which were very small when starting the execution of this industrial plan. You may remember that Cybersecurity was about EUR 0.4 billion in terms of revenue in 2022, now we get at EUR 1 billion orders. Space was not a division. It was part of other division. The activities in Space were part of other division or were operated through the Space Alliance. So now it's a division with EUR 1 billion orders and EUR 1 billion revenues per year. So I think this is a very good sign of the proper Industrial Plan, which was set at the beginning of this year and the execution of that Industrial Plan. This increase in orders, of course, has pushed up also revenues, which were up 11% compared to 2024. So double-digit growth, double-digit growth also over all the divisions. So we have growth at group level, but also at the same pace in all the division. So Defense Electronics & Security, we have a strong growth in Europe, 11%, but also in Leonardo DRS, again, this 8% that you read on the table, of course, is affected by the negative translation difference on the dollars. Otherwise, it will be above 10%. So very strong increase also in Leonardo DRS. Helicopters were up by 11% compared to last year. So 1 year ahead of Industrial Plan targets, where we were supposed to get the same level of revenues in 2026 and higher volumes driven both by the Helicopter and the platforms, but as said, also with the customer support. If we look at the deliveries of the Helicopter division, this year, we are slightly down in total compared to last year, 182 deliveries versus 191, but the mix is completely different because in 2024, the weight of light and very light helicopters was much bigger. So for instance, we had 42 light helicopters against 14 this year for the U.S. Navy. So you can understand that the number in total of deliveries is lower this year, but the mix is more favorable in terms of unit per delivery. And I want to underline also increasing contribution of customer support. where we have higher margins, and this is an important part of our road map to improve profitability in Helicopters. Aeronautics performed in a very solid manner. I think we are well progressing in all the main programs, EFA, proprietary platforms, GCAP, JSF, so very solid performance. Aerostructures were slightly negative, but in line with the budget, and we will come back on this point while discussing about the profitability because I think Aerostructure was a key point. And of course, Cybersecurity pace are increasing following the success we have on the commercial side. So revenues at the end, EUR 19.5 billion with Italy accounting for about 23%. So the international dimension of the group is increasing every year as planned in our Industrial Plan. This increase in revenues has an effect -- a positive impact on EBITA, which is up 18% year-on-year -- this is not only because of the volume effect that you see on the table that a portion of that increase is linked to the volume effect. But of course, we have also a significant increase in profitability. We said that the return on sales has gone up by 60 basis points from 8.4% to 9%. And so this is a clear effect of the actions we are doing to improve our profitability and cash generation. Also here, we had a small negative impact for the translation of the dollar figures of DRS, but quite small. If we look at the EBITA by segment, I think it's interesting to deep dive on each division. Starting from Defense Electronics, which is this year above EUR 1 billion in terms of EBITA, with a return on sales close to 13%, slightly better apparently compared to last year. But then I think as I said earlier, we need to look at the composition of the value of the EBITA for the division. As you know, we have 4 building blocks. We have Electronics Europe. And here, our EBITA was about 11% from 10.3% in 2024. So very good increase. We have Leonardo DRS, which has increased its profitability from 10% to 10.4% and also, we have the contribution of our JV and strategic partnership, MBDA and Hensoldt, which in total gives a contribution of EUR 180 million, which is about EUR 20 million less than 2024. So if we look at the overall ROS, we see a slight -- only a slight increase, but because it is affected by the negative variation compared to last year of our JV. So a little bit surprising this negative variation, I will explain better why. As you know, we put in our EBITA the net result coming from the JV. So we put on our EBITA also the impact, which is below the EBIT line of those JV. So mainly tax, which were this year higher in MBDA. MBDA is a group which is performing very well. This year is going to be close to EUR 6 billion in terms of revenue with a backlog of EUR 44 billion. So double-digit profitability. So it's performing very well. But if you go to the last line of the profit and loss, we got a tax charge because of the tax reform in France, which has affected the net result. So profitability in Electronics division growing slightly, but only because of this impact on the JV. Helicopters, we have increased our profitability from 8.8% to 9% ROS. So here, we see the benefits from our actions, both on the efficiency on engineering and our supply chain management, but also the increased contribution from customer support. As I said, we have higher margins on customer support, and this is part of our strategy. Aircraft, again, very solid performance in Aircraft division, close to 13%, driven by the programs I was mentioning before. Aerostructure was negative by EUR 130 million, around EUR 130 million. So still negative, but in line with our provision, and this is true for all the KPIs of Aerostructure, including cash flow. So the plan we made is solid. During the year, we increased also the shipset rates on B787, you know that it is our bigger program in Aerostructure. And during the year, we started from 4 shipsets per month. We arrived at 7 at the end of the year. So a very good progress. We got an agreement also with Boeing that makes our rate plan also for the future much more robust and reliable, and this gives confidence about the solidity of the plan we made on Aerostructure. An additional point about Aerostructure. If you look at Q4 only, you see that Aerostructure is at breakeven. This is due to the impact, of course, of the increase of the rates on B787, but also on the closure of some smaller programs, which has allowed us to release some contingency. So it's a very good sign because it implies a progress and a benefit on the activities we do for Boeing, but it's also not an indicator of the trend going forward. We expect Aerostructure to be in a loss position also in 2026, and we maintain the plan we said in the past. We will go in more detail, of course, in March, but I can anticipate you that, of course, if you see breakeven in Q4 is not what you have to expect in 2026. As said, very important milestone, the agreement with Boeing. It's around 50% of the business. Then we have other activities, which are more or less fine and this is reducing the issues on Aerostructure on around 30% of our revenues. It is the activities so we do with ATR and Airbus. But Boeing now has a more solid profile. Cybersecurity is up 63% compared to last year. Of course, this is mainly due to the different scale. We are increasing scale a lot in Cybersecurity. So the fixed costs have been absorbed much better than in the past. SG&A as well were lower in contribution to the revenue. This has increased the margins. Also, I have to say that we have some very good new programs, which are contributing to the EBITA. Finally, Space, where, again, we have a very significant increase, plus 90%. This is part, let's say, organic. It means the activities we do on the Service segment, where we have been doing very well this year, very strong increase in revenues, a very strong increase in profitability, but it's also due to the lower loss of [ Telespazio ] space. We put here the 33% of the net result of TAS. Last year was negative by around EUR 50 million. This year it's still in a loss position by EUR 23 million, but of course, the reduction is a benefit for the result of the division. TAS is progressing in its recovery plan, still negative, but it's progressing as expected on its plan. The results -- I said the results include also the benefit from our efficiency plan that we launched at the beginning of our industrial plan when executing our industrial plan. We see that also this year, like in the past year, the benefit from the efficiency plan exceeded the budget. We were higher than the budget. So this is -- this gives us a strong confidence that we will be able to achieve also the scale that we have in the plan for the future years. So we are progressing very well also in the efficiency plan, and this is sustaining our EBITA. And the increase of our EBITA, of course, is increasing our free operating cash flow, which is 21% up compared to last year with the same conversion rate, which means that this year, we have been able to translate all the improvements we have done on the operational side on the EBITA in cash, very important because this is a key factor for our future development. So operating cash flow was EUR 2.3 billion, and it was able to pay back also additional investments. We are this year at around EUR 1 billion, increasing compared to last year. And of course, this is a trend that we will see also in March when presenting the new industrial plan. Of course, we paid also interest and taxes for EUR 0.3 billion, leading to a free operating cash flow of EUR 1 billion. Again, this is the best ever. It's a comment that is applicable to all the KPIs because it's the best ever for all the KPIs. But in free operating cash flow, as we were seeing when looking at 3-year mandate of the current Board of Directors is the most powerful indicator of the improvement of the group. Thanks to this cash flow generation, group net debt has gone down by 44% year-on-year, starting from EUR 1.8 billion and closing at EUR 1.0 billion. We have, of course, also the benefit coming from the proceeds of the sales of the U.S. business, EUR 0.4 billion. But also, as Roberto was mentioning at the beginning, we paid a much higher dividend this year, EUR 0.3 billion. So net final position, EUR 1 billion. I think it's important also to look inside this EUR 1 billion to understand how it is built up, to understand also our -- how flexible and solid is our balance sheet. We have a group net debt that is in total EUR 1 billion, but excluding lease liabilities and net payables to joint venture is positive by EUR 0.9 billion. Now what is this line? This line borrowings, loans to joint venture is the cash that our joint venture deposits to us, mainly MBDA, of course. So it's our share of cash in the joint venture. As I said, the trend in MBDA is such that, I mean, this is cash we usually have in our hands and it's owned to MBDA to the JV, but of course, it's our share of cash in the JV. So if we look at the subtotal before those 2 lines, we have a positive net financial position by EUR 1 billion. Very important also to link with the commitments we have, the potential outflows we have in 2026. In March, when closing the Iveco deal, we will have cash outflows that before the cash in the company is around EUR 1.7 billion, but we have the money available to pay that amount. So very good results. very well positioned for the 2026 also based on a strong fourth quarter, which is part, by the way, of the actions we are doing on the cash flow generation and the profitability, trying not to be too much concentrated in the last part of the year. So derisking the free operating cash flow also trying to anticipate and be compliant with the milestones we have during the year in order not to be too stressed at the end of the year. Still some area improvements because if you look at the trend of the free operating cash flow, it's, of course, negative and probably it's something related to the business, which cannot change, but it's strongly negative over the first 3 quarters. but much less compared to the past. So this is an effort that we are doing. We are trying to make revenues, profit, free operating cash flow more linear over the year. I think this year, we have been quite successful in doing this. Of course, to do that, you have to focus mainly on the execution of the contract, on the achievement of milestone and then our revenues and EBITA to be sure that you are able to cash in the money before the year-end. So again, this is our full year results. This makes us very confident about the future development of the group. Claudia Introvigne: Thank you, Giuseppe. So now I think that we are ready to take your questions. The first question is coming from Sam Burgess from Goldman Sachs. Giuseppe Aurilio: We can't hear anything. Samuel Burgess: Can you hear me? Can you hear me? Giuseppe Aurilio: Yeah, now we can hear you. Samuel Burgess: Given we're getting some guidance in a couple of weeks, I'll try and contain myself on any forward-looking financial questions, but I saw R&D had a very strong 20% year-on-year increase, running well ahead of sales growth. Can you just give us some color on the areas of investment here and whether this level of investment is likely to continue? And a follow-on from that, in your discussions with the Italian government customer, are there any capability areas that you are not currently delivering where they would like to see investment? That would be really helpful. And then a third, if I can ask a third would be, within your cybersecurity business, are you seeing any new market entrants anywhere you compete, that might be kind of AI-focused start-ups? Roberto Cingolani: Yes. Thank you, Sam. Complex question. I'll try to simplify the answer. The pillar of the R&D ex investment, for sure, are digital, particularly doubling the computational power and the storage capability. This is necessary because we plan to have ground stations for the data analysis that are produced in the multi-domain, and we need a very fast machine for algorithms and decision-making in real time. Of course, good investment is being done through the NATCO for the drones and the adjunct for the GCAP, for the Swarm intelligence. That's very important because as you can imagine the GCAP itself is a platform, but the NATCO are developing kind of synergistically but independent to each other, their drones and their -- so the adjunct and their swarm intelligence capability. So that's very important. We are investing a lot in command and control because, of course, within the Michelangelo, as you might remember from the previous presentation, the idea that we have to develop a module that becomes a upper layer of communication among different platforms and the module itself is agnostic with respect to the platform or to the effector. So it could be adapted to let an aircraft manufactured by a company and the tank manufactured by another company with the same -- under the same command and control and under the net umbrella, that requires a specific investment in terms of new electronics and of course, the sensors. We are investing on the long-range radars because we have started the activity on the 1,300 kilometers, 1,400 kilometers range radars that will be the last ring of the chain for sensors, radars that go from 30 kilometers to almost 1,000 kiometers. Investment then is done in many other areas. Cybersecurity is presently undergoing a strong acceleration in that whatever we will do in the future, either cyber war, anti-threat or multi-domain Michelangelo Dome, whatever, we will need a strong capability in cybersecurity. All signals will be wireless. So you really need to be strong in terms of cybersecurity. Those things are developed in parallel. Compared to the past, those are not silos. Those are synergistically developed programs, in which all divisions and all engineers are [ adding ] to each other. And I think this is the main difference. There is a coordination in terms of how we develop the new technologies for the multi-domain application, let's say, dual-use hybrid war applications and so on and so forth. Concerning our estimate of the competitiveness in the future landscape of hybrid war, that, of course, it's a very complicated question. Let me tell you something we are now developing -- we are starting more than developing. I mean you see in some of the important sites where the statistics are developed for defense and so on. You see that, for instance, the cost of the Ukrainian war is in the range of a fraction of $1 trillion, $0.4 trillion or so over the years. But then you read that the forecast for the damage caused by cyber war, cyberattack in the future is going to grow exponentially. In 2020, the cyber crime caused losses for approximately $1 trillion in a year. The forecast for 2030 is $1 trillion per month. So obviously, if you compare the expectation of the market that will be involved in the anti-threat for the hybrid war, this is much bigger than the conventional defense. It's hard to say what part of this market can be targeted by a company at the moment. No one has this kind of statistics. This is what we are doing now. We're trying to evaluate where we can focus our attention. And for sure, cyber threats will be central. For sure, there will be infrastructural threats that can be primarily reduced by satellite observation. So all those things are being analyzed at the moment. I think by March 12th, we're going to bring you some forecast, at least a large, of what could be our positioning and what could be the size of the hybrid war products in terms of financials and R&D effort, whereas the one in terms of standard war, let's say, multi-domain war, that's much more clear, and we know exactly where to go. You will get all the numbers in a couple of weeks' time. Claudia Introvigne: So next question is coming from Alessandro Pozzi from Mediobanca. Alessandro Pozzi: I have three, if I may. The first one on Aerostructures. I think it's positive to see that you've turned a profit in Q4, even though it was mainly driven by contingencies. Can you perhaps quantify what was the impact of contingencies in Q4 there? And while on the topic, in your opening remarks, you mentioned that the deal is getting closer with your partner. Can you perhaps maybe tell us what the new JV in Aerostructure could look like? What could be the perimeter and what could be the potential for growth there? The second question on margins. I think you've broken down the elements of the margin increase, volumes versus mix. I was wondering what is the impact also from the cost efficiency that you are implementing into allowing the company to increase margins at the EBITA level. And final question on free cash flow. I think it's good to see that you're increasing cash conversion. Can you give us a sense of whether there was any positive working capital impact on cash flow and thinking more in terms of advanced payments. Roberto Cingolani: All right. So Alessandro, I'll give you a partial answer. And then, of course, I will ask Giuseppe to complete the answer. So concerning free operating cash flow, I will leave the stage directly to Giuseppe in a minute. Concerning to margin and cost efficiency, we have a maniac approach in cost saving. I will not bother you anymore every 6 months telling you how much we are saving in the saving plan, but I can assure you we are exactly on track. That famous EUR 1.8 billion savings done on the direct and indirect procurement, it's absolutely in agenda. It's at reach. There is a strong commitment. So no departure from the commitment. Second, a lot of efficiency in the production. The capacity boost that we mentioned -- we presented to you a few months ago is now operating in most of the hardware platforms, where there is a lot of work to be done. We're incorporating Iveco for the land defense. We are doing a lot of things, optimization also in helicopters. Electronics obviously -- I mean, I think you noted how fast was growing electronics. I think we were growing from a few billions to almost EUR 8 billion this year. So obviously, electronics has to update its own organization because it's so central in the payload strategy and in all the joint ventures that Leonardo is doing. I mean, we are providing weapons and sensors and payloads to land defense, to the GCAP to drones. So basically, this is at large all electronics. There, we are working a lot in efficiency and not reorganization, but efficiency in the organization. That includes hiring new engineers, hiring new people, improving the industrial capability. So those things are rolling. It's a continuous progress. What I can say, but then, of course, Giuseppe will be more precise, the fact that in 3 years, we grew up by, let's say, 20% to 30% orders and revenues. And by 40% and 80% EBITDA and free operating cash flow means that, though with some jet lag with some delay, you do see now that things are improving the way we wanted. Of course, Giuseppe is monitoring this with very specific measures that we will tell you, but I can guarantee there is absolute attention and commitment in the company to keep the -- all those parameters in terms of efficiency and margins high. Concerning Aerostructures, yes, the deal is closed is getting close indeed. We -- at the beginning the company will be a 50-50 company. You have to consider that it's very important for the trust of our customers, that are important customers such as Airbus and Boeing that we have to guarantee that, of course, we keep the standard. Meanwhile, we build something much bigger with a much bigger market. We are making the calculation what -- how big this market could be. So this will be disclosed very soon. But I can tell you, I mean, it's by far more than what we have now in terms of Aerostructures. It's substantially higher, maybe triple or so. Let's see for the numbers also what will be the incentive policy that the country we're talking to will be able to put on the table. But the numbers are definitely quite big. I think that in the future, we will be able to place the position in terms of size of the new company in the top 3 around the world, let's say, as an indication, okay, which is definitely much bigger than Aerostructure. Alessandro Pozzi: About the reason, when you can announce? Roberto Cingolani: Look, concerning me, I will be ready, yes, today. Concerning our partner, I think they're also impatient. But as I said, there are also kind of political steps that they are not in our hands. But the agreement is that we give the exclusivity for closing up to June. So I believe that, yes, that should be the range. Giuseppe Aurilio: Okay. Roberto, about the release of contingency in Aerostructure, the order of magnitude is about EUR 15 million. Consider also that we had an acceleration on the delivery rate just in the last quarter. So we delivered and we took a marginal so small in the last quarter of something that has been produced earlier and it was in the stocks. So -- but the order of magnitude is in that range, EUR 15 million to EUR 20 million. About the cost efficiency, Roberto has perfectly replied. So of course, it is included in the improvement that you see in the EBITA when we talk about improvement of profitability is driven by these efficiency actions. And free operating cash flow, of course, it's a mix of different divisions, different type of contracts. We got some advanced payments as it is customary on the export contracts. On the other hand, in some divisions, we had a negative impact deriving from the acceleration of the production. So overall, the working capital is going to contribute more or less in line with last year, so slightly negative to the free operating cash flow. And by the way, it is important to underline that the more we grow, especially on the international market, the more we get recurring advances. So it's a recurring event, I mean. Claudia Introvigne: Okay. The next question is coming from Carlos Iranzo from Bank of America. Carlos Peris: I actually have two, if I may. First one, I would like to come back to Aerostructures. Regarding the split in the joint venture, the 50-50, is it always going to be 50-50? Or could you progressively transfer ownership to the partner down the line? And then I just wanted to see if you can share a little bit of color on the Electronics Europe margin in 2025 ex the joint venture contribution, basically looks like there is a very little margin improvement year-over-year. So what are the reasons that have prevented you from increasing margins a little bit more in 2025? Is it mix? Is it R&D? Is it phasing of some contracts? Roberto Cingolani: Okay. Thank you, Carlos. I'm going to answer first about Aerostructures. I think I can safely say that the original -- the starting 50-50 is going to change, primarily because this is a long pathway towards transferring or doubling technologies is a very complex like in aerospace. And I believe that it's very natural to think that while we make the new plant in partner country, we need to train and create the conditions to produce components that are certificated. So what I imagine normally is that you improve the quality of the fabrication, you gain certification and then you can transfer more and more their activities while you develop brand-new activities somewhere else. So yes, I believe that with progressing the standard of the industrial setup, industrial capability in the new company, there will be the possibility to change the ratio between the share among the 2 partners. So I think so. Now the timing for that, it depends on the results, how fast the quality will grow, how soon they will be capable to reach the right standard for aviation authorities and so on and so forth. But we're totally committed. And the good thing is that we're not making something to make it shorter. We are expanding substantially the product portfolio. And of course, there will be -- there is even more job force that will be employed. It's really a think big program. It's not a think small program. So for sure, there will be an evolution, dictated by the standard of qualification, the standard of fabrication. Concerning the margin of electronics, of course, I'll leave the stage to Giuseppe in a minute. But I just want to wrap up one thing. The big program where you expect, how to say, big margins and big money to come are land defense Rheinmetall. That started 1 year ago, and we delivered the first, I think, six infantry vehicles. And we are presently developing the complete version of what we call the Italian version that integrates all the sensors and the weapons and command and control electronics into the machine. I think the first machine will be delivered in the next months. And then we are now starting to work on the MBT, main battle tank prototype. So if you see the order profile that we presented in the plan, but I will eventually update this, remind you in the presentation on March, the delivery should start in -- should rise in 2028, 2029, 2030 with about 100 pieces per year. At that point, you will see massive impact because there will be massive transfer of those technology. At the moment, we are talking about small units, 6, 7, 10 maybe and also still at the development level because, we are, especially on the main battle tank, we are making the first -- we're working on the first prototypes. So I think there is a kind of a little jet lag between when you start producing the platforms or delivering the first 5, 6 platforms and when you go into the massive production, which is expected to be in the next 2, 3 years. I think for the infantry vehicle is from '27, the massive growth. I think next year is something like 15. I don't remember exactly, but '27 growth. And for the main battle tank, it's around '29, '30. So at that point, you will see big numbers coming. The second big program is drones. Now drones, we had a spectacular acceleration because in 8 months, that is in April, we will have the first midsized drones produced and assembled in Ronchi dei Legionari, our plant in Northern Italy. And we are working on a daily basis with Baykar to integrate brand-new technologies. There are important things I will tell you in 2 weeks when we will present the update of the plan, telling you that we are making a really paramount effort on accelerating drones and unmanned flying objects, including rotorcraft, not only fixed wing. But also there, before selling hundreds of pieces, there will be kind of 1 year, 6 months of delay. We have to demonstrate the machines landing in special conditions or serving in a crew -- sorry, in a swarm -- operating in a swarm. So those things are planned for the next few months. Once again, you will see the impact on electronics immediately after. GCAP, well, I mean, this is a longer program, but again, there we are investing on that level. So I think this is quite normal. But the very good thing is that we are slightly ahead of schedule with the drones, absolutely on schedule with the land defense systems. And the GCAP is doing well. And by the way, it remains the only one program worldwide. So I believe that you will see the development of the margins and the numbers of electronics in due time without any surprise. Giuseppe Aurilio: Yes. And Carlos, about the margins in electronics, when we look at Europe only, it has been increasing over the year. It was 10.3%, I think, in 2024, and now it's close to 11%. So again, the slight increase of electronics is due to a dilution coming from the JV. So not from the trend of Electronics Europe, which is doing very well. So of course, R&D is increasing, as said, but we are paying back with the profitability we are producing. Roberto Cingolani: Yes. And Carlos, one last remark. Of course, you've seen our intention, our plan with the Michelangelo Dome that we presented just a few months ago and will be a strong part of the future plan. And there, even if you are platform agnostic, so in principle, we could not sell a single platform in principle. There will be a lot of electronics in terms of radars, sensors, weapons and command and control modules that will be immediately added to the portfolio. So I expect that also to be an important source of upside for the electronics profit margins, but also for the entire group. It's going to be something big collective for all the divisions. Claudia Introvigne: Now the next question is coming from Martino De Ambroggi from Equita. Martino De Ambroggi: Again, on Aerostructures, sorry. Just to have a rough figure on what was the free cash flow because we know the EBITDA, but what was the free cash flow for Aerostructures stand-alone in '25? And just a follow-up on the previous answer. If I understand correctly, I don't know if it's your main goal or if it's an option, but there is a possibility to see Leonardo going below 50% of the new entity. I have another question later. Giuseppe Aurilio: Okay. I will start from the free operating cash flow. The loss at EBITDA level this year was something like minus EUR 130 million. Of course, we invest in our structure. We are still investing in our structure because to be prepared to the plan that Roberto was describing, in any case, we need to invest. So the investment this year was about EUR 40 million, EUR 45 million. So you can easily get that the free operating cash flow was negative in the area of EUR 0.2 billion. Roberto Cingolani: Concerning your question, Martino, about deconsolidating, let me say, in my rude language. Yes, I don't see any problem in the future. The point is that this is not simply consolidating or deconsolidating. The point is that we have to provide a horizon, a future to the entire Aerostructure business, not only connected to our traditional customer, but also to military machines and extending -- expanding the market to big airlines and so on, so forth. So that deconsolidating or consolidating in any case, this has to be positive on itself. Having said this, yes, I think that we will evaluate with great attention that the quality of the manufacturing will reach the right standard. And at that point, we can easily change our share. No problem at all. Anyway, the workforce will be unaffected. I think that the market -- the player will be very big, on a very big market on a large market area in the world. So I think the vision is very positive. The outlook is very positive. Martino De Ambroggi: Okay. And the second question is on two future opportunities. Any update on the U.K. Jumbo helicopter order? And on the recent agreement you signed with an Indian partner, is this something that could be reflected in your business plan -- in the next business plan or it's more much further away? Roberto Cingolani: Martino, I'm bound to -- for maybe 24 hours to confidentiality issues. if you have the questions to wait for 24 hours, we're going to talk again. What can I tell you more? Okay. So about the -- we -- I can tell you that we've been working very, very intensively with our U.K. branch and with the U.K. government. Let's wait for 1 or 2 days and things will come clear. Martino De Ambroggi: Sorry, which was the wait time for India part? Roberto Cingolani: No, no, not for India, only for U.K. India, Giuseppe is going to tell you. Giuseppe Aurilio: Yes. Related to India, we set up a partnership with Adani Group, which is instrumental for addressing the growing India military demand, creating a hub for helicopter manufacturing and sustainment. You know that there will be the need to replace 1,000 units in the next few years. So it's a very big market for us. We are currently responding to Navy and Army tenders for about 300 helicopters. We'll see. However, we see also a strong potential on the civil market because of the kind of the country. I think also the civil market, there is a strong potential. So it is our best interest to be present there in the way we can. Roberto Cingolani: Yes, Martino, sorry, because I never like to keep analysts and investors hanging on, I will tell you tomorrow, after going in 3 months. So I don't like this, the way I'm transparent is against my nature, let's say. But I can tell you one thing. As long as I will be here for the next years, I promise that Leonardo will be an international company, a truly multinational company, not an Italian company, but a multinational company. In this respect, you can imagine how important for me, for us is, that our second and third domestic countries such as U.K. and U.S. are fundamental to be considered a truly multinational company with very high tech capability and not simply a domestic company making domestic defense. I'm telling you this, I'm anticipating you this because the commitment that I got with the authorities in U.K. is that I strongly want a powerful, complete committed Leonardo U.K. because this is essential, not only for us, for our multinational vision, but also for the future of the Continental European defense. I know the U.K. is not European Commission, but it's Europe continentally. So this was my first statement with the authorities. And I think it will be reflected in the forthcoming decisions. So I'm very, very optimistic. Claudia Introvigne: Let's go to the next question from Sebastian Growe of BNP Paribas. Sebastian Growe: First of all, can you hear me well? Claudia Introvigne: Yes, sir. Sebastian Growe: Okay, cool. The first one would be around defense electronics. Giuseppe, you pointed to the 4 drivers behind the EBITA in the ES segment. Apparently, MBDA has played an increasingly important role over the last years. And based on the disclosure that we received from Airbus last week, it looks as if MBDA's operating profit margin declined by about 200 basis points and that despite almost 20% revenue growth. So the question I'm having simply is, what is the driver behind this margin contraction? And can you provide any more color how to think of the cadence with regard to the mentioned EUR 44 billion order backlog at MBDA? Then I would have one more around Aeronautics, but maybe we can take the ES question first. Giuseppe Aurilio: Okay. Yes, relating to MBDA, I think, again, the company is performing very well. It's well above double digit. It was even higher last year probably. But again, it's more than 10% return on sales. Of course, they are investing a lot. They are preparing themselves to execute a EUR 44 billion backlog. So they are investing both in CapEx and in R&D to be ready to execute that backlog. But the main impact you see in our numbers, as I said, it's below the line. it's because of the increased tax charge they have in France. It was supposed to be a one-off. Probably it will be also in 2026, confirmed for 2026, but it's tax charge, which was not there in 2024. Sebastian Growe: Okay. Got you. And can you eventually give some guidance or indication at least in regards to the future top line dynamics at MBDA? I think we have seen now over the last 3 years growth rate accelerating from about mid-single digits to then 10% in '24 and now getting close to 20%, as said, in the year '25. So how to think really about the trajectory of that EUR 44 billion backlog? Giuseppe Aurilio: We will reflect, as usual, the net profit in our numbers. So of course, I mean, I cannot give you guidance about the MBDA performance in the future. I know what they are doing. We will reflect in our plan. But I mean I cannot give you guidance on the top line of MBDA because it's something they have to do. Sebastian Growe: Okay. Fair enough. And let's move on quickly to Aeronautics, please, and more specifically here to the aircraft business. I noticed that the margin was down year-on-year, which I assume is due to the consolidation of the GCAP program. And talking about that very consolidation, it looks as if GCAP added about EUR 300 million or so to revenues. However, the EBITA addition was less than EUR 10 million from what I could reconcile. So I guess my question is, how do you think of the future sales and margin trajectory for the GCAP program in particular year? Giuseppe Aurilio: You were perfect in getting the right answer because, of course, in GCAP, we have aircraft is acting as a prime, of course, so the margin is a little bit diluted, not at group level because, of course, also the other divisions are contributing to GCAP. But if you look at aircraft stand-alone, of course, there is a small dilution. Sebastian Growe: In terms of how the trend from here... Giuseppe Aurilio: In terms of trends for the future, I think, I mean, based on the programs we were mentioning, Eurofighter, M-346, C27J, JSAF, the manned, I think the profile of aircraft is very solid. Claudia Introvigne: Next question is coming from Afonso Osorio from Barclays. Afonso Osorio: I'll just stick to these M&A deals that you've been doing here. So 2 questions, I think it's quite quick. The first one on the Iveco deal. Thank you, Roberto, for all the detail you've given us. You mentioned giving the exclusivity for 6 months to Rheinmetall. But given that you will close the deal by March, how should we think about the contribution from this business for you specifically this year in 2026? Are you basically assuming 100% contribution for you this year? Or will you, in 2 weeks' time, give the targets for 2026, assuming you sell a part of that to Rheinmetall? And then the second question is on -- and apologies for coming back to your structures, but just to double check, will you consolidate to the numbers or deconsolidated the numbers once you announce the JV? Roberto Cingolani: Okay. Afonso, concerning Iveco, so at the beginning, we -- let's say, we closed and we bought it all while our partners are discussing with -- waiting to understand what could be the situation with the antitrust. This seems to be usual now also with Bromo is the same. We need to wait. We do all the industrial work and then we have to wait for months and months to see what happens with the antitrust. So okay, let's see. Obviously, by the time we buy it, this will be fully incorporated in our finance and our balance sheet. And by the way, as I said, it's absolutely not bad because they have a very good backlog of orders. The margins of the trucks is not absolutely not bad. It's a double digit, quite solid. I should also mention that we are discussing about future programs for big artillery mounted on trucks. And therefore, that could be also instrumental to the creation of new products. So I believe that's a very, very safe situation in terms of industry product. Also, I'd like to tell you more industrial detail in the plant Piacenza. There's currently a double capacity in that in the same plant, we produce, they produce both trucks and armored vehicles. So even in the case we decide to split this, to carve out, we need to do some in the industrial optimization. And so this would require some months. So it's absolutely under control. Whatever we do, I could say whatever we do for the next maybe couple of years would be anyway safe. I think the decision should be made before depending on the outcome of the antitrust. And at that point, we will see. As I said before, there are other companies that will be interested where they're having no problem with the antitrust. But of course, we would privilege at the moment, the relationship with Rheinmetall because this was the original plan. If this will not be possible, we're going to find -- we're going to have other solutions. But as I said, we are ready to go work. We have the pipeline of orders. Things are running. We didn't stop one day, the plant. So it's really safe situation. Giuseppe Aurilio: Yes. Regarding the deconsolidation, the potential deconsolidation of Aerostructure, of course, as Roberto was describing, the partner is not only a financial partner, is a financial partner with an industrial strong interest in the combination. So of course, the governance we are discussing reflect this point. Of course, they want to have also vision and therefore, not allowing us to consolidate, Aerostructure. Claudia Introvigne: Okay. We can proceed with the next question from Christophe Menard from Deutsche Bank. Christophe Menard: Before taking my question, I have three. The first one is on, you mentioned prepayments. Can you tell us what level of prepayments you had at company level in '25 versus -- and how it compares to 2024? Second question is on Aerostructure. Again, you mentioned a number of investments that could be coming in the future. What would be the free cash flow outlook for Aerostructure as a consequence? I mean, we understand EBITA will -- there will be some EBITA breakeven going forward, but should we expect a series of CapEx investment in the coming years? And the last question is it's probably a little bit granular, but on defense electronics in Q4 in Europe, it seems the sales dropped quite a lot. Is there any reason for this? I mean, I have -- versus my expectation, I have a miss of around EUR 600 million. So I just wanted to see whether that was related to a specific program. Giuseppe Aurilio: Okay. Regarding the first question, we look at the working capital as a wall. So I think I said working capital is contributing negatively the same area than in 2024. Of course, the line items might be different, but the overall contribution of working capital is in that range. Aerostructure, I said, I mean, we are progressing also with executing our industrial plan in our structure. And of course, as part of this plan, we have an investment plan to digitalize the factories to improve the efficiency of the divisions. And so of course, we are investing. And this is consistent with what we are discussing with the partner. Roberto Cingolani: Giuseppe that was instrumental for our partner to accept and evaluate very well our stand-alone plan. Without those, improvement would have been less attractive. But this was -- I mean, this is kind of past due is done. Giuseppe Aurilio: Yes. And so this is factored in our plan when we said that it will be a breakeven in '28, '29, we will see the updated plan, but you can easily understand that we are there, we are still there and the investments are already included in that plan. Q4 electronics, I think compared to last year, Electronics Europe was something like 7% higher. But the point is that back what I was saying when commenting the cash flow as a general trend, we are working a lot to make the trend more linear over the year, not to focus on the last quarters for deliveries, invoices, cash in. This is a big effort. Of course, the results you see that we do improve. We do better in the first 3 quarters, maybe we are less focused on the fourth quarter. But this is important to us as an action because, I mean, you can have a better management of cash flow only if you are able to make this trend more linear. So you see maybe the negative side of the coin, but for us, it's an effort to be more linear over the year. We will not be, again, cash positive probably during the year because of the trend of the payments of the customers. But knowing that we have to be able to progress on making more linear our milestone, our invoicing and our revenues. Claudia Introvigne: We move on with the last question coming from Adrien Rabier from Bernstein. Adrien Rabier: I just had one, please. A few months ago, you told us you were reviewing the Hensoldt stake. So I was wondering if you had any update on that side, please. Roberto Cingolani: Yes, Adrien, thank you for the question. I spoke recently to the CEO of Hensoldt. Actually, the plan was to meet end of February, beginning of March to update the mutual situation, primarily their situation in Germany. And then very likely, I will go to Germany, talk to the authorities to see what if and how we can proceed with the deal. There are different options on the table. One could be essentially selling part of the shares to let the German government, for instance, to grow in their share in Hensoldt, like it's happening in other companies, but we are very open to this. So all the options are on the table. And I think by March, we should -- end of February, beginning of March, we should have a touch base. Having said this, the numbers of Hensoldt are okay, they are the above expected, no particular warning about that. So we decided -- we're trying to go towards a conclusion by the first, the second quarter, basically, so before the summer to see what to do. Claudia Introvigne: Thank you. Thank you all for your participation in our conference call at this point. And we hope to see you all in Rome on the 12th of March for our business plan update. Thank you, and good afternoon. Roberto Cingolani: Bye. Giuseppe Aurilio: Bye-bye.
Operator: Good afternoon. My name is Matt, and I'll be your conference operator today. At this time, I would like to welcome everyone to Pursuit's 2025 Fourth Quarter and Full Year Earnings Conference Call. [Operator Instructions] Thank you. Carrie Long, you may begin the conference. Carrie Long: Good afternoon, and thank you for joining us for our 2025 full year earnings conference call. During the call, you will hear from David Barry, our President and CEO; and Bo Heitz, our Chief Financial Officer. As David and Bo cover our results and outlook, they will be referencing our earnings presentation, which is available on the Investors section of our website. We encourage investors to monitor the Investors section of our website in addition to our press releases, filings submitted with the SEC and any public conference calls or webcast. Today's call will contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to the disclaimer on Page 2 of our presentation for identification of forward-looking statements and for a discussion of risks and other important factors that could cause results to differ materially from those expressed in such statements. During the call, we will also discuss non-GAAP financial measures and definitions of those non-GAAP financial measures are provided on Page 3, and reconciliations to the most directly comparable GAAP financial measures are provided in the appendix of the presentation and in our earnings release. And now I will turn it over to David, who will start on Page 4 of our earnings presentation. David Barry: Thanks, Carrie, and thank you all for joining us as we review our record-breaking 2025 results and unveil our vision for continued significant long-term growth. Today's call will be slightly longer than usual as we have so much to talk about. So let's settle in, get comfortable and off we go. I'll start by celebrating 4 notable achievements that reflect the incredible momentum we've built and the even greater potential ahead. First, we delivered our best results ever in 2025 with significant year-over-year growth, all while continuing to deliver extraordinary experiences for our guests. Second, we executed a thoughtful set of strategic moves to strengthen long-term shareholder value, including acquiring Tabacón in Costa Rica, entering into an agreement to sell FlyOver and investing in ourselves through share repurchases. Third, we're introducing our Vision 2030 long-term financial targets to drive our next phase of accelerated growth backed by a proven strategy, strong balance sheet and meaningful pipeline of high-return investment opportunities. And fourth, we're guiding for continued strong growth in 2026 and are well positioned to benefit from global consumer demand trends for experiential travel to iconic destinations. So let's review our record 2025 results and exciting achievements on Page 6. During 2025, our team delivered extraordinary experiences to 4.2 million attraction visitors and welcomed guests across 439,000 room nights. We drove strong broad-based growth. Revenue reached $452 million, up 23% year-over-year. Adjusted EBITDA surged 52% and margins expanded to 26%, clearly demonstrating the power and scalability of our model. Our record results are driven by our incredible team members and leaders who relentlessly focus on elevating the guest experience across our businesses. This focus helped drive a year-over-year increase in our already strong guest experience scores. Our engaged teams, elevated guest experiences and the enduring pull of our destinations continue to propel Pursuit forward with real momentum. Now let's turn to Pages 7 and 8 and walk through the series of strategic actions we took over the past year to redefine our future. We are executing a disciplined transformation to strengthen our portfolio and unlock long-term shareholder value. Our strategy is simple and focused. Using Refresh, Build, Buy, we're growing our core site-seeing attractions and hospitality experiences in the world's most iconic destinations. At the end of 2024, after a decade of meaningfully scaling Pursuit within Viad, we sold GES, our legacy sister business, retired all of our high-cost Term Loan B debt, strengthened our liquidity and converted our preferred stock into common stock. This reset our balance sheet and sharpened our focus. In January 2025, we launched Pursuit as a stand-alone pure-play attractions and hospitality company with the financial structure and flexibility to accelerate our proven growth strategy. By July 2025, we expanded into the Costa Rican market with the addition of Tabacón, a one-of-a-kind thermal river attractions and luxury hospitality experience that strategically fit perfectly as a powerful addition to our portfolio. In September of 2025, we acquired full ownership of our high-performing Glacier Park subsidiary. And in December 2025, we purchased the minority interest in FlyOver Iceland. These intentional transactions simplified our capital structure and eliminated $25 million of noncontrolling interest liabilities. In January of this year, we entered into an agreement to sell our noncore FlyOver business at a premium valuation of approximately 15x 2025 adjusted EBITDA. We expect that sale to close this spring. Additionally, through our share repurchase program, we've returned $14.5 million to shareholders through opportunistic repurchases, underscoring our confidence in the long-term value of our company. These moves reflect disciplined value-accretive portfolio management and mark the next step in a decade-long growth story as we continue to build a stronger company to the long term. And now I'll turn it over to Bo to review our 2025 financial results before we dive into our Vision 2030 targets and 2026 expectations. Michael Heitz: Thanks, David. I'll start on Page 9. Our full year revenue grew 23% to reach a new record of $452.4 million. This growth was primarily driven by a strong recovery across our Jasper properties that were temporarily closed during the second half of 2024 due to wildfire activity as well as by incremental growth from our new experiences, strong yield optimization and visitation across our geographies and continued momentum in overall guest demand for our distinctive existing experiences in iconic places. Excluding our Jasper properties and new experiences that were not operated by Pursuit for the entirety of 2025 and 2024, our revenue increased $29.7 million or 10%. We delivered revenue growth across all geographies, with particular strength across our Canadian operations and at Sky Lagoon, supported by continued global secular trends, our differentiated businesses and our passion for delivering incredible experiences for our guests. In addition to broad demand, we experienced minimal impacts to our operations from inclement weather and smoke as compared to typical years. Net income attributable to Pursuit, which is inclusive of discontinued operations, was $22.7 million as compared to $368.5 million in the prior year. The year-over-year change was primarily driven by the sale of GES in 2024. Adjusted net income was $33.5 million as compared to $3.7 million in the prior year. The year-over-year growth of $29.8 million primarily reflects higher adjusted EBITDA. Adjusted EBITDA increased by $40.1 million year-over-year to $117.1 million, primarily driven by significant revenue growth with strong margin improvement of 500 basis points, supported by operating leverage in the business and continued cost discipline. Now let's look at our attractions performance on Page 10. Attraction ticket revenue reached $201 million, reflecting a 24% year-over-year increase driven by substantially higher visitors and effective ticket prices. Visitors increased 12% year-over-year due to a strong Jasper recovery, new attractions and overall robust demand for our one-of-a-kind sightseeing attractions. Same-store constant currency effective ticket pricing, which excludes our Jasper properties temporarily closed in the prior year and new attractions, grew by 9% compared to 2024. This improvement was enabled by our focus on guest experience with particular strong performance from our Canadian attractions in Banff and Golden and from Sky Lagoon in Iceland. Next, let's turn to our hospitality performance on Page 11. Lodging room revenue totaled $105 million, reflecting a 28% year-over-year increase driven by a strong Jasper recovery, new lodging and improvement in same-store ADR and occupancy. All of our collections delivered growth in room revenue during the year. Same-store constant currency RevPAR, which excludes our Jasper properties temporarily closed in the prior year and new lodging grew 7% as compared to 2024. Our lodging properties are in iconic high-demand travel destinations, offering guests direct access to some of the most breathtaking natural settings, including nearby Pursuit sightseeing attractions. These markets also benefit from compression dynamics supporting both strong rates and high occupancy. And with that, I'll turn it back to David to introduce our Vision 2030 long-term financial targets. David Barry: Thanks, Bo. On Page 13, let me start with this. Pursuit is in a category of one. We deliver irreplaceable natural world experiences at scale, and we do it with a model that compounds. From 2015 to 2025, we transformed Pursuit into a powerful growth engine. We expanded our network of one-of-a-kind destination assets. We deepened our operating system, and we consistently converted guest demand into durable, growing cash flows. That momentum is not episodic. It's structural. We're well positioned relative to strong secular trends as shown on Page 14. Global travel demand is strengthening, and our portfolio is exceptionally well positioned to capture this momentum. International tourism is expected to grow again in 2026, supported by higher airline passenger volumes, increased tourism spend and strong traveler intent. Travelers are planning more trips, longer leisure stays with larger travel budgets, creating a healthy backdrop for sustained industry growth. We're also benefiting from powerful structural shifts in traveler preferences. Wellness, adventure and outdoor experiences continue to trend strongly with more global travelers prioritizing wellness and showing greater interest in nature-centric destinations. And this aligns directly with the core strengths of our business. At the same time, travelers are placing a premium on unique and elevated experiences. The guest behaviors we're seeing show folks planning to splurge on upgraded destination activities and they're booking tours and experiences. The rapid adoption of AI-driven trip planning is further accelerating discovery and booking of curated activities, an advantage for distinctive experiential brands like ours. So taken together, these durable global travel trends, rising tourism activity, a heightened demand for wellness and adventure and the prioritization of immersive experiences create a favorable environment for our continued growth. Page 15 explains our differentiated model and strategic positioning. What makes Pursuit different is simple and fundamental. We own and operate forever assets in the world's most iconic destinations. These attractions and lodges are experiential infrastructure that enable our guests to access and experience iconic natural places. They're not replicable. They're long-lived and they sit where demand shows up year after year. Our demand is perennial and anchored to the destinations themselves, not consumer cycles. Banff, Jasper, Waterton, Denali, Kenai Fjords and Glacier National Park as well as Iceland and Costa Rica, these are all bucket list places. Guests already choose them, and we meet them in destination or pre-arrival and elevate the journey with authentic natural experiences. That creates durable, visible and predictable demand. Supply is structurally scarce due to our true one-of-a-kind locations. Protected environments, long-dated concessions, stringent permitting and years of disciplined capital allocation make our assets impossible to replicate. These characteristics create an enduring competitive advantage. Our culture is our strategic advantage, guest-obsessed hospitality, experience design-driven, growth-minded and powered by leaders we developed. With restless energy and an owner's mindset, we combine discipline and innovation to deliver sustainable growth that differentiates us. Pursuit operates as a connected ecosystem of vertically integrated operating system for experiences. We orchestrate the full visitor journey across attractions, lodges, food and beverage, retail and transportation. The network effect is real. Every exceptional moment lifts satisfaction, raises spend and strengthens performance across the platform. The operational complexity, including logistics, safety, hospitality, design and guest flow is a capability we've owned over decades. The result is consistent compounding cash flow. Our revenue is driven by greater guest satisfaction, visitor volume and yield growth, not ADR cycles. And because we largely serve a mass affluent traveler for whom our experiences are a small share of overall trip spend, our guests are generally willing to pay for differentiated experiences. So when I say Pursuit as a category of one, I mean exactly that, irreplaceable assets in perennial demand destinations operated through a refined vertically integrated system by passionate hospitality team members, delivering world-class natural experiences and compounding value over time. And as we think about driving shareholder value, we do that through 4 powerful levers, which are highlighted on Page 16. First, we're focused on always elevating performance across our iconic experiences. Our teams continue to deliver consistent year-over-year growth by leveraging strong perennial demand and maintaining an unwavering focus on the guest experience. Second, we're driving organic growth through our refresh and build investment strategy. These targeted investments enhance the guest experience, expand capacity and generate attractive returns across our portfolio. Third, we're accelerating expansion through strategic acquisitions. We maintain a robust and well-developed pipeline of opportunities that complement our existing assets and align with our strategy and values. And fourth, we're deploying capital through opportunistic share repurchases. Investing in our own business at compelling valuations is an important part of our capital allocation strategy and reflects our conviction in Pursuit's long-term value creation potential. These growth levers are supported by a strong balance sheet and low net leverage that gives us the flexibility to invest in both growth and opportunistic share repurchases while maintaining financial strength. So with these levers and our differentiated business model, we're excited to share our long-term view to 2030 with you today, starting with revenue on Page 17. So from 2015 to 2025, our total revenue, excluding FlyOver, grew at a compound annual growth rate of approximately 14%. Looking ahead, we believe we can continue to grow revenue at a double-digit compound annual growth rate through 2030. We're targeting revenue of more than $845 million by 2030, reflecting our transformational strategy to become the world's leading iconic attractions and hospitality company. Our growth model combines durable organic performance with disciplined inorganic expansion, creating a scalable platform capable of delivering sustained top line growth. Turning to Page 18. The strength of our revenue growth engine, paired with high incremental flow-through and disciplined cost management sets the stage for strong adjusted EBITDA growth. By 2030, we seek to grow adjusted EBITDA by more than 2.3x with a target of more than $265 million, excluding FlyOver. And we're targeting an adjusted EBITDA margin of more than 30%. Our business model is built to convert top line growth into sustainable earnings and margin expansion. We benefit from high incremental flow-through as revenue grows supported by disciplined price and mix management and a cost structure that scales efficiently with volume. We have confidence in our ability to drive sustainable yield growth because our experiences are one-of-a-kind, guest-centric and located in iconic capacity-constrained destinations with perennial demand. Our lodging RevPAR and attraction ETP metrics remain resilient and consistently stronger than what we see across the broader hotel and attraction industry, underscoring the strength and differentiation of our platform. Across our network, we're unlocking additional revenue by filling white space at our attractions, using thoughtful guest programming and pricing to extend seasonality and smooth out visitation peaks. We're also strategically allocating room inventory in capacity-constrained markets across channels, optimizing yield while deepening cross-selling into attractions and other experiences. Additionally, our refresh and build investments enhance the quality of individual assets, expand capacity and generate incremental EBITDA as each project comes online and ramps. We have a powerful refresh and build investment pipeline of more than $300 million from 2026 to 2030 that positions us for accelerated growth with projects in development and additional opportunities in planning that expand capacity and unlock new yield in our highest demand markets. When we enhance the guest experience, we see it directly in greater happiness, increased volume, higher rates and higher spend per guest. A great example is our Golden Skybridge attraction where we've continued to expand the experience from sightseeing suspension bridges into a multi-experience adventure park, which includes ziplining, a mountain coaster ride, Canyon Edge Challenge Course, Giant Canyon Swing and more. By elevating the guest journey and expanding the experience, the team has delivered meaningful growth in total revenue per visitor and sharp improvements in guest experience scores. It's proof that when we elevate the guest experience, yield follows. And we're far from finished. Teams across Pursuit keep inventing new breakthrough ways to wow our guests staying obsessively focused on continuous improvement that drives growth. For buy opportunities, our robust acquisition pipeline spans both tuck-ins in existing geographies and forever experiences in new iconic destinations. We enter those with a flagship attraction and then over time, scale into a destination-defining collection. We invest with discipline and ambition directing capital to forever one-of-a-kind experiences in iconic locations where demand is perennial and supply is limited. Every project must clear our 15% plus IRR hurdle rate and deliver attractive margins, provide exceptional guest satisfaction while operating in business-friendly countries. All of this is supported by a strong balance sheet, which will soon include expected FlyOver sale proceeds and continued EBITDA growth, giving us substantial investment capacity to execute this pipeline and accelerate our trajectory while also being opportunistic in repurchasing our own stock at compelling valuations. Together, these levers enable us to translate revenue growth into sustained earnings momentum and move steadily toward our long-term targets. With that, I'll turn it back to Bo to zoom in on our outlook for 2026. Michael Heitz: Thanks, David. As shown on Page 21, we have a favorable demand setup as we head into 2026. Our destinations benefit from the power of perennial demand for iconic places, and that demand is only strengthening. In Canada, the government is renewing free admission to national parks through the Canada Strong Pass for summer 2026, expanding access during the peak travel season. And Banff was recently named the best place in the world to travel in 2026 by National Geographic, another powerful signal of its global appeal. In the U.S., access to Glacier National Park will improve with the removal of time to entry vehicle reservations, which is expected to support higher visitation in 2026. In Alaska, Anchorage air service continues to expand and the new Seward cruise ship docking area opens in 2026, increasing capacity for both independent travelers and cruise guests. In Costa Rica, tourism momentum remains strong with the market projected to grow at high single digits from 2026 through 2031. Across our portfolio, iconic destinations paired with structural demand tailwinds give us confidence in continued growth ahead. Turning to our early demand indicators on Page 22. Our lodging pacing for 2026 is off to a solid start across both Canada and the U.S. and supports our view for continued demand. While we are still early in the year, our Canadian and U.S. lodging properties are pacing well compared to the same time last year. The charts on this page show our confirmed room bookings. In addition to this, we have strong demand for our travel trade partners this year, which is not fully reflected in these numbers. As a reminder, our travel trade partners hold inventory with strict release dates, generally 90 to 120 days out. Unsold tour and travel inventory gets released and is immediately available to FIT, consumer direct and OTA channels. We have a proven track record of managing inventory to maximize both capacity and rate in peak season. On Page 23, you'll see a quick update on Tabacón, our newest acquisition and exactly the kind of high-quality buy opportunity we're targeting. Tabacón's premier thermal river attractions and luxury resort are in one of Costa Rica's most iconic destinations. It delivers strong year-round performance and provides counterseasonal EBITDA that complements our Canadian and U.S. businesses with its peak season underway. Since joining Pursuit, the team has completed meaningful upgrades, including improvements to the arrival experience for our main premium thermal river attraction. We've also rebranded the second thermal river experience from Choyin Rio Termal to Hot Springs Pura Vida, creating a clearer, more compelling day use offering. Early booking pace for 2026 is encouraging with strong demand across both the resort and our thermal river experiences. And our build and buy growth investment evaluations are in full swing, exploring opportunities to enhance the existing experience and expand our presence in Costa Rica. With robust demand, ample capacity and the continued ramp-up of the thermal river attractions, we see a clear path to growth. Tabacón is highly aligned with our strategic priorities and will play an important role in advancing long-term value creation. Let's turn to our 2026 financial outlook on Page 24. We expect 2026 to be a pivotal year for execution of large-scale multiyear, high-return growth projects, combined with continued strong profitable growth. Our adjusted EBITDA guidance range of $123 million to $133 million reflects an increase of approximately 9% at the midpoint from 2025. This guidance includes adjusted EBITDA of approximately $500,000 from FlyOver, assuming the sale closes this spring. Excluding FlyOver from both years, revenue and adjusted EBITDA are expected to increase double digits at the midpoint from 2025 with adjusted EBITDA margin improvement. We also expect meaningful incremental adjusted EBITDA from Tabacón of approximately $7 million to $8 million relative to the prior year. Our outlook reflects solid underlying growth drivers, including continued demand for authentic experiential travel in iconic destinations and improvements in guest experience and revenue management that are driving higher effective ticket prices, ADR and visitation. Strong flow-through and disciplined labor and expense management further enhanced year-over-year EBITDA growth. With 2025 being such a standout year of performance, it sets a particular strong prior year baseline. We are assuming some weather normalization compared to the unusually near perfect conditions we experienced during our peak summer season last year. Our multiyear growth capital expenditures are expected to have a minimal impact on 2026 results, impacted by some temporary disruptions during our seasonally slow periods from our phased lodge renovations. But these investments will help propel our growth beyond this year. With the upcoming sale of FlyOver, our income tax position will shift in a favorable direction driven by an expected improvement in our U.S. financial results. As a result, we are anticipating a much lower effective tax rate in 2026 and beyond of approximately 22% to 26%. From a macro perspective, our guidance assumes an exchange rate of USD 0.73 for each Canadian dollar, which is similar to the 2025 average rate. Now let's turn to Page 25 and walk through our meaningful pipeline of refresh and build projects planned for 2026. We've built a robust pipeline of growth investments across our well-instrumented experiences, backed by strong execution capabilities and a track record of delivering returns. Our teams work year-round to surface high-impact ideas and rigorously compete to advance the most compelling projects. In 2026, we're accelerating our investments in iconic forever assets to fuel our long-term growth. We expect growth capital to increase meaningfully from 2025 to approximately $88 million to $93 million in 2026 as we move forward with major planned investments that have a total commitment of approximately $200 million and an effective adjusted EBITDA multiple of less than 7x by 2030. We anticipate a large portion of these returns beginning in 2028. Over the last decade, Pursuit has completed 16 major refresh, build and buy growth projects that collectively contributed approximately $102 million of adjusted EBITDA in 2025, reflecting an effective multiple of approximately 6x, demonstrating a disciplined, repeatable investment approach and supporting expectations for continued attractive returns. Pending relevant approvals, our 2026 growth capital plan includes a number of exciting projects, a few of which we are highlighting today. In Jasper, we plan to refresh the Jasper SkyTram to replace aged experiential infrastructure with a renewed iconic site-seeing experience in Jasper National Park. Additionally, we are in the process of completing the Forest Park Hotel Woodland Wing renovation to better align the property with mass affluent leisure demand in Jasper National Park. The first phase was completed ahead of the 2025 peak third quarter and delivered a 22% ADR increase versus non-renovated rooms in the second half of the year. The next phase is well underway and expected to be completed ahead of the 2026 peak season. We also plan to begin a refresh of the Lobstick Lodge to improve and reposition the property to capitalize on high market demand from both consumer and tour and travel segments in Jasper National Park. We're planning investments to refresh the Banff Gondola, making experiential enhancements to improve all aspects of the guest journey at this iconic attraction in Banff National Park. In Montana, we're focused on the phased transformation of the Grouse Mountain Lodge to reposition the property for higher-end lodging demand and create a compelling differentiated offering for Glacier National Park visitors. The first phase, which has commenced, includes upgrades to guest rooms and pool area and the addition of a new event pavilion with completion expected later this year. And in Alaska, we are in the process of reimagining the Denali Backcountry Adventure. This is a premium, high-margin guided guest journey experience deep into Denali National Park that has been closed since 2021 when a landside closed road access. We plan to reopen the Denali Backcountry Adventure to guests in 2027 to coincide with the planned National Park Road reopening. These projects are transformational in nature and will accelerate our momentum beyond 2026. And with that, David, I'll turn it back to you. David Barry: Thank you, Bo. I'm pretty lucky I get to work with smart, passionate and guest-obsessed colleagues every day. And without their cheerful and determined energy, we could not have delivered such strong results. I'd like to close by recognizing our team members for their commitment to success. Their focus on delivering exceptional guest experiences and driving continuous improvement is central to our performance and long-term value creation. To our shareholders, thank you for your continued support and encouragement. We remain disciplined in our execution, committed to strengthening our portfolio and focused on delivering sustained growth, expanding profitability and creating meaningful long-term shareholder value. And with that, let's open up the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Jeff Stantial with Stifel. Jeffrey Stantial: Maybe starting off on the new long-term targets for 2030 appear quite impressive. I was hoping you could just expand a little bit on one of the 4 categories there, specifically the buy, the M&A category. I guess how much are you assuming for EBITDA contribution from acquisitions in the 2030 target? How confident are you in this materializing just based on the pipeline of discussions you're seeing today? David Barry: Jeff, I'll jump in. It's David and pass it over to Bo in a second. But I think one of the things to remember, as you well know, is that we -- the challenge with picking a particular acquisition and when it's going to actually close is a little bit challenging just given the rhythm and nature of M&A. And so what we've done is we tried to view into the future and to say we expect to have a certain amount of acquisitions occurring over a period to say exactly when they'll occur. And there's also some -- it's challenging. And then there's also opportunity. We have the balance between our organic refresh growth lever that we can accelerate, decelerate again given the size of acquisition opportunities that we may find. And so if everything were the same size, it occurred on a very timely basis, it would be [Technical Difficulty]. But what we've tried to do is articulate a vision for the future that clearly shows a balance between the 4 levers of growth. Michael Heitz: Yes. And Jeff, I mean, directionally, you can see that the majority of growth is still expected to come from the organic side, which -- on the organic side, we are still expecting double-digit CAGR of -- alone just with that. But as you probably saw on the page, there's acquisitions that are still a key component of that when we think of the overall growth. And I think if you look back over the last 10-plus years, you see that that's really been the case up until this point as well. And so it's really a continuation of strategy and executing against that. Jeffrey Stantial: That's great. And then maybe sticking on the targets, the $200 million of committed project spend that kicks off this year, you noted a 7x or sub-7x expected blended multiple for that spend. Historically, the average you call out has been closer to 6. Is this just conservatism? Is there anything structurally different in this opportunity set? I recognize it might seem like small variance, but we are getting questions here. So just anything to help reconcile that gap would be helpful. Michael Heitz: Yes, I don't really view it as a gap, Jeff. It is -- I mean, as you said, it's really a sub-7x multiple target around that. And what you've seen historically from us is that we've been able to achieve that. So we incorporated all of our expected returns across all those projects. But the reality is all these projects are categorically very similar to things that we've had success deploying capital and getting our returns in historically. You think about it as there's the experiential infrastructure of these aerial roadways, which we have a couple of key projects in that category. You have the lodging refresh type projects that we've been executing consistently over time now. And then Denali Backcountry Adventure, that's one where actually already is a business that we've had historically, but it's really reimagining and bringing it back online. So high degree of confidence. I think the sub-7x is appropriate, and that means that we can definitely achieve and hopefully exceed that. Jeffrey Stantial: That's great. And then maybe if I could just squeeze in one quick housekeeping item. Slide 18 mentioned mid-single-digit baseline growth embedded in the target. Just to be clear, is that revenue growth? Or is that EBITDA growth? Michael Heitz: I mean, honestly, I think it's safe to assume both on that category. But the reality is that's really the baseline before you have any growth capital projects layered in on top of that. And so as you can imagine, in any year, historically, we would have some level of growth capital, and we're really talking about accelerating that above and beyond normal over the next few years here. But I think the right way to think about that is organic growth prior to any growth capital investment on it. Jeffrey Stantial: Okay. Again, congrats on the strong year, strong guide and some great targets here. David Barry: Thank you, Jeff. Operator: Your next question comes from the line of Tyler Batory with Oppenheimer. Tyler Batory: I got some technical difficulties here. So hopefully, my questions haven't been answered. Can we go to 2026 first before we go to 2030? And I just want to be clear on the guide you're giving for this year. What's contemplated in terms of organic revenue, organic EBITDA and then the margin expansion that's implied on an apples-to-apples basis, excluding Flyover. Just talk a little bit more about what's contributing to that? And then I don't know if you can touch on what you're expecting in terms of expense line items, things like labor, et cetera. Michael Heitz: Sure. Yes, Tyler. So first, from a Flyover perspective, as you'll see and as we've disclosed, there's been a little over $5 million of EBITDA in 2025 for that. And we're assuming that, that transaction closes this spring and Q1 is a seasonally low quarter for FlyOver historically. So there's only about $0.5 million in the guide for FlyOver from an EBITDA perspective. So when you take that out off the table, that's when you're then looking at double-digit revenue and EBITDA growth on that. There is -- Tabacón is probably the other key thing of note that we acquired in July of 2025. And so you do have the full year run rate coming in on that, which that combined with continued growth that we expect at Tabacón results in about $7 million to $8 million of incremental EBITDA growth from that business -- we haven't given a specific revenue associated with that, but we have noted that, that was expected to be margin accretive to us from year 1 for that. So gives you some parameters around that. So when you take all that out, it's still, yes, quite strong growth that we're expecting over a strong 2025. That growth really supported by a variety of things. You have positive secular trends that we noted. As we said, business indicators continue to look strong into 2026 and beyond. Q1, frankly, has been off to a strong start with that. And yes, I think the thing to remember is that we're investing in once-in-a-lifetime experiential infrastructure. And when you have that, you have some powerful large-scale investment projects that drive -- we're expecting is going to drive some real meaningful long-term growth. And the reality is the majority of those projects are not coming online in 2026. So not quite the same as you might normally expect in this business as a result of that. Tyler Batory: Okay. Great detail. So shifting to the 2030, and apologies if I missed this, but just help us think about how you're expecting to use the balance sheet leverage, et cetera. I mean to get to that 2030 target, I mean, are you assuming a little bit of incremental leverage on the balance sheet from where you are today or hoping to keep things somewhat consistent or at least within the targets that you provided to get to that $265 million EBITDA number? Michael Heitz: Yes. So today, we're currently sitting at about 1x net leverage on the business. And as we shared, we view long-term leverage target to be more in the 2 to 3.5x range for this business. When we look at our Vision 2030 plan, we touched on the organic side of deploying over $300 million of growth capital into this business. That will have some leverage impacts. But as you can imagine, then you'll start to get the returns from that as those start to come online. But I think even if you just factor in the organic side, that still leaves a lot of capacity from a leverage perspective. And that's where the acquisition side comes into play. Operator: Your next question comes from the line of Alex Fuhrman with Lucid Capital Markets. Alex Fuhrman: Congratulations on all your many accomplishments in 2025. David, I wanted to ask about ticket pricing and the longer-term potential there. It looks like you guys had a really nice high single-digit increase in attraction pricing. But $50, I mean, that's still a really small percentage of what guests spend on lodging and in most cases, airfare for their trips to your region. How high do you think that number can go before there's any real meaningful resistance if you're able to keep executing and improving the service levels? David Barry: Yes, Alex, thank you for that. I won't speculate on a number other than we believe that there's always opportunity to make things better. So if you start with that mindset and then you apply, again, back to the 4 levers of growth, right, where the business performs well on its own year after year and you're always looking for ways to make the experience better, then you're also looking to fill white space. So it's a balance between what we're doing on, say, increasing guest visitation in the slower periods of the year. Great example is Sunset Festival at the top of Banff Gondola. That didn't used to exist. 5:00, it was pretty quiet. Nobody was riding up to see sunset. But once you figure out the programming, then you've got opportunity in white space to have product that then suits the white space and that drives both experience quality and then it drives yield over time. So back to the 4 growth levers, you've got 4 different ways that we grow the company every day. Organic refresh growth is all about investing in the business to drive improvements, and that connects back to your question on ETP, the year-over-year improvement. And then as we look to tuck-ins and other things, there's always the power of packaging and bringing on more products that people are excited about. So it's really hard to predict the future. And I think every industry has that challenge of trying to pick a number. But I think in the end, it's -- you just put your head down and you make things better and guests are excited, and they want to come and connect with a place in a meaningful way. Alex Fuhrman: That's great. Well, appreciate that, David. And then you -- along those lines of the improvements you're making, you talked a lot about some of the specific enhancements and upgrades you're going to be making in 2026. The commentary around the Banff Gondola was fairly vague about enhancements across the board. What are some of the specific things you're going to be doing at the Banff Gondola this year? David Barry: Early days, but we're working on that planning now together with our partners at Parks Canada and envisioning what it could be. And for those that remember and maybe visited the Gondola prior to our investments in 2015, '16, there was a real step change transformation in experience. Together with Parks Canada, we created an amazing interpretive center for people to really enjoy the history of the park and tell the story of Banff National Park. Then we created really interesting food and beverage experiences. And so now we're 10 years later, and it's time to take a look and say, what can we do to continue to improve that experience and plan that out, work with our partners at Parks Canada and the community to envision what that could be and then work to execute upon it. So it's premature at this point to give you more specifics than that, but I can tell you that we're actively focused on that planning. And as that evolves, we'll be able to share more on upcoming calls. Operator: Your next question comes from the line of Eric Des Lauriers with Craig-Hallum. Eric Des Lauriers: Congrats on another strong quarter here. My first question is just a bit of a clarification that the long-term 2030 targets do assume double-digit organic growth and not just double-digit when including M&A. So that first clarification there. And then as we look at sort of visitation and same-store metrics for 2025 and we look at those as sort of an appropriate base going forward, is there anything you would call out as a onetime impact in 2025 from visitation, ticket price, RevPAR perspective? Michael Heitz: Sure. So on the first part, Eric, there, you are correct in hearing that of what I was articulating there. And the reality is when you look at the slide we provided on the EBITDA growth, you'll see it come out to a combined CAGR of closer to 19% from an EBITDA perspective. And the organic side of that does get you into double digits even before you consider the acquisition side of what we're expecting. In terms of 2025, I mean, the reality is I do think that's a good base to build off from a same-store attraction visitor perspective. It was a strong year and a couple of nuances that we called out. But overall, we're expecting to continue momentum off to a great year. Eric Des Lauriers: All right. That's helpful. And then as we look at the refresh and build side of your growth strategy, obviously, several projects that you're working on. Could you sort of help us rank order maybe from an eventual EBITDA contribution perspective or maybe a revenue contribution perspective would be easier. But just kind of how to think about those from an overall size or contribution standpoint. Just kind of help us think about which ones might be especially more impactful than others, which are kind of just tuck-ins, modest contribution? Just kind of help us wrap our head around some of these projects a bit more. David Barry: Well, I mean, without getting into really specific detail, obviously, the work that we're doing at the Jasper SkyTram and the refreshing of that, and that's once-in-a-lifetime experiential infrastructure that takes you to an amazing beautiful place. And it's the only sightseeing aerial ropeway in Jasper National Park. And so that's something that obviously is for the ages. That's a location and an investment that is terrific and produces over the long term at a very high level. We're working on the Banff Gondola, as I just mentioned. Then you have a variety of other opportunities in below that. But I would say that without getting into specifics that our aerial ropeways are always really powerful economic engines and also great guest satisfaction engines. And that's -- people love a beautiful view no matter where they're from in the world. So as we get closer to things, we'll be able to articulate more clearly and -- but generally, every single thing, just a reminder that we look at from an organic refresh opportunity within the company, we have a minimum investment threshold of 15% IRR and the vast majority of the things that we do exceed that handily. And we look to invest in parts of the business to reduce friction, make guest experiences better and just create magic for our guests that are visiting. So that's the mindset we take, and we'll share more as we get into it. Operator: There are no further questions at this time. [Operator Instructions] David Barry: Thanks, everybody. Appreciate you joining us today on the call, and we will talk again soon. Have a great afternoon. Operator: This concludes today's conference call. You may now disconnect your lines.
Conversation: Clive Christopher Bannister: Ladies and gentlemen, good morning, and a very warm welcome to Rathbones' 2025 Full Year Results Presentation. Can I do the admin bit? Would you mind switching off your mobile phones or somebody will be listening to me in Vladivostok or Abyssinia? So I'd be most grateful. I'm joined today in the room by our Senior Independent Director, Sarah Gentleman. Sarah, you're most welcome, and I'm joined online by other Board Directors. I'm pleased to see investors, analysts with us in person, and I'd like to say hello to the many more who are joining us online. I appreciate that you make the time whether you are long-standing shareholders of Rathbones or are engaging with us for the first time. Today is an important moment in our calendar as a company. And on behalf of the Board, I want to thank those shareholders for their interest and continued investment in our fine firm. We trade today at a 5-year high with our market capitalization at over GBP 2.4 billion. So let me set out briefly how we intend to run this morning. We will begin with an overview of the 2025 financial results and guidance from our Group CFO, Iain -- can you wave, Iain -- Iain Hooley, followed by opportunities for question, another form of health guidance. When you get -- when you want to ask a question, please wait for the microphone to come so that our colleagues who are online can hear your question. Then after a short break, we will move into the strategic presentation where our new Group CEO, Jon Sorrell -- Jon? Thank you very much. Glad everybody is recognized -- will outline a forward-looking evolution of our strategy, and we will close with a further Q&A session. Before we begin, I want to offer a few reflections from the Board, slightly tongue in cheek. It is the 284th year, so since 1742, since the Rathbones Group started in Liverpool. And I'm going to say, consistent with that long heritage, we have tried to deliver disciplined capital returns, including a 6.2% compound annual growth rate in our dividend in the last 20 years. This is a valuable and fine business. Today, we continue that tradition by announcing a dividend of 99p, which is an increase of 6.5% compared with 2024. Setting the math to one side, this has been a year of meaningful progress for Rathbones. We completed the client integration of IW&I, a major milestone that provides the foundations for a unified and much more scalable organization looking into the future. And I want to take a few minutes here to thank our colleagues across our group, 3,500 employees in 17 offices to thank them for the work that they have done exceptionally hard in the last 2.5 years to get this done. This was never taken for granted, and I want to thank you, all of you on behalf of the Board. We navigated the CEO transition smoothly as a Board and have strengthened the executive team considerably around Jon, adding further experience to support the next phase of growth. We also launched the group's first ever GBP 50 million share buyback last year, reflecting our commitment to disciplined capital allocation and this morning announced an extension to that of a further GBP 20 million. We know who owns this company, and we reward our investors accordingly. And importantly, the executive team have defined a clear strategy for 2026 and beyond, one that positions the business for long-term success. This is about being in a marathon and not just a sprint. To echo the home team's stated ambition to be the best wealth manager in the U.K. by far. From a Board's perspective, these achievements speak to a business that has strengthened its foundations whilst continuing to deliver for clients and shareholders. There is always more to be done. But the Board and I are enormously encouraged by the momentum that is building across the organization and by the clarity of purpose that now underpins the next stage of Rathbones' journey. Unrealistically, I look forward to the next 284 years. With that, I will hand over. Jonathan Edward Sorrell: Thank you, Clive. Good morning. Thank you again for making it here heroically on a Friday, mostly in suits and ties. So thank you. We really appreciate it. And to those online as well, welcome. You're going to see a lot more of me shortly as Clive outlined, but I just wanted to take a moment to introduce the new team to you all. And so I'll start with Brad, our new CTO. It's a newly created position at the company. Already since starting on the 2nd of January, Brad has injected huge momentum into our technology effort. I don't think I've ever seen anyone so high on AI, which is terrific to see. Next, Camilla, who I think some of you will have met already, who joined in June from some other company but has just done an incredible job getting to grips with our front office team and is full of Formula 1 analogies, which I take to mean it's all about incremental improvement and achieving excellence. Next, Cassandra, I don't think I've ever spoken to a CRO whose byword is hustle. So we thought that was quite a good place to start. But recently anointed by our regulator, Cassandra, making a huge difference, huge shoes to fill, of course, following Sarah Owen-Jones, who's done such a fantastic job for us for such a long period of time. Gillian, another with big shoes to fill following Gaynor, and I'm sure delighted as our new Head of HR, our CPO, to be walking in just when compensation is being done, which is the favorite part of any CPO's calendar. So welcome to Cassandra -- to Gillian. Iain, we're all bored of. Ivo, Ivo, one of the legends of our business, I will say, 33 years young in the business, I think 11 years on ExCo and a font of huge knowledge, institutional knowledge experience on both the investment side and the wealth side and also the founder of our charities business as well, a huge generator of our business. So Ivo. Moving on to Jayne, who is Executive Chair of Rathbones Asset Management and really, in the last couple of years as well has revolutionized our approach to distribution in the business, both in terms of business development on the wealth side, but in RAM as well and really excitingly for Rathbones as a group. And there are many situations where we can bring the best of Rathbones to a client situation, and Jayne does that in spades. Mike, our Chief Operating Officer, has had the huge misfortune to have worked with me in the past at Man Group and used to be Chief Executive of Man Solutions. We have a really broad agenda of very important strategic projects that need to be delivered as a group. And Mike is going to sit at the apex of all of that and make sure that everything is, I think he promised, to be delivered on time, on budget and perfectly and beyond expectations, which was good to hear. Robert Sears, who will join us on Monday, not here today, is our new CIO. Tremendously excited about what he will bring from all of his experience in the family office world to our business. And last but not least, the force of nature that is Simonetta, who has brought an entirely different dimension to our brand, to our marketing effort, whether that's digitally or, indeed, in other forms. And we are very, very excited about what we have to come on that side as well. So with that, I will let Iain get on with the good stuff. Please do stay around in the coffee break and after today's presentations to spend some more time with the team. Iain Hooley: Thank you very much, Jon, and good morning, everyone, and welcome. I'm going to cover 3 main areas. First, I'll run through the overview of the 2025 results. I'll then cover figures relevant to the IW&I integration and our capital position. And I'll then conclude with our expectations for margin progression and performance in 2026. So I'll begin with covering the main financial highlights for 2025. Funds under management and administration, or FUMA, increased by just under 6% to GBP 115.6 billion at the 31st of December, reflecting the recovery in asset values from the low point at the end of the first quarter when FUMA fell 5% following the announcement of the tariffs by the U.S. government. Operating income grew by 3.1% with all principal income streams growing year-on-year, benefiting from both higher average FUMA and the realization of synergies. The rate of growth in income is lower than the overall growth in FUMA as investment management fees are crystallized on a quarterly basis with the first billing of the year coinciding with the low point in FUMA at the end of the first quarter. Underlying profit before tax grew 4.6% to GBP 238.1 million. That was supported by the continued delivery of synergies, which reached GBP 76 million on an annualized run rate basis during the second half following the migration of the IW&I clients onto the Rathbones operating platform. The underlying margin increased to 25.8% for the year overall. This reflects a margin in the second half of the year of 27.5%, having recovered as expected from 24% for the first half. On a statutory basis, profit before tax grew 53.5% to GBP 152.9 million, having also benefited from a reduction in integration costs. Underlying basic earnings per share increased by 5.5% to 170.5p per share, in line with the growth in underlying profit and supported by the share buyback. We've proposed, as Clive referenced, a final dividend for the year of 68p per share, which brings the total dividend to 99p, an increase of 6.5% relative to 2024. And that's reflective, of course, of our progressive dividend policy and is underpinned by the growth in earnings. We'll now look at the principal movements in underlying PBT between 2024 and 2025 and their impact on the margin. The benefit of synergies increased as the full benefit of those delivered in 2024 came through during the year and synergy delivery then increased further during 2025. Whilst FUMA ended the year at GBP 6.4 billion higher than it began, the average level of FUMA during 2025 at the point when fees are calculated was a more modest GBP 3.3 billion higher than the average for 2024, reflecting the market volatility we experienced in the early part of 2025. Profit growth driven by the level of FUMA was therefore limited to GBP 13.4 million. Recurring costs increased as a result of inflation and the specific headwinds we've signed posted previously. Nonrecurring costs incurred in 2025 comprise those we've communicated before, which include the effect of transitioning to the technology outsourcing agreement with Investec and the effect of executive changes. You'll have seen our flows position previously in our fourth quarter trading update, so I'll just touch briefly on the main points. Within the Wealth Management segment, gross inflows remained resilient at 9.5% of opening FUMA. That's despite the focus required from the investment management teams on client migration, which took place during the first half. Gross inflows were then GBP 0.7 billion higher in the second half. Gross outflows improved relative to the prior year, though they were higher in the second half, driven in part by an uptick ahead of the U.K. budget in November. Net outflows for the fourth quarter were the lowest quarter of the year at GBP 64 million, being 8% of the total for the year. As we moved into 2026, we've seen higher-than-normal outflows relating to payments of tax to HMRC from portfolios ahead of the 31st of January tax payment deadline. The elevated level of tax-related outflows persisted only for the month of January, and it is consistent with the increase in clients choosing to crystallize capital gains ahead of the U.K. government's first budget back in October 2024. These tax-related outflows present some further distortion that we've seen in flows -- the flows picture over recent months, adding to that caused by the November budget. In addition to those specific distortions, flows of the Wealth Management segment are also subject to movement in charities mandates, which behave in a more institutional manner and flows relating to noncore execution-only services, which are inherently more volatile. These factors affect the overall headline level of net flows for the Wealth Management segment. Looking through them, we remain focused on the FUMA and flows that are the core drivers of our overall profitability. Delivering improvement in flows relating to the core discretionary private client FUMA is where our focus is strongest. Our strategy to improve these flows is focused on creating the conditions within the business that will support growth and pursuing specific growth opportunities, and Jon will talk more about that later. With regards to asset management flows, the Asset Management segment continues to operate in a very challenging environment for U.K. asset managers, particularly in relation to single strategy funds. However, it's important to recognize the areas of underlying strength within the Asset Management business. Performance across several flagship strategies remains competitive, and our investment teams have deep experience through market cycles. During the year, the Asset Management business launched 2 important new strategies, charities authorized investment fund, or CAIF, and an ex-Japan Asia fund. And whilst those funds are in their early stages and therefore, had a limited impact on the flows position for the year, they nevertheless represent important enhancements to our asset management offering. The Asset Management segment provides the investment solutions to certain of our wealth management propositions, principally the Select and managed services and the core MPS service, which launched during the year. And Jon will speak more later about how Rathbones Asset Management enhances our overall competitive position. But the funds under management managed by the Asset Management segment that relates to the wealth -- the services of the Wealth Management segment is included in the gross FUMA of each individual segment and is then removed from the Asset Management segment in order to show the consolidated group position, and that's on the intra group FUMA line towards the bottom of the table. We'll now look at the breakdown of income for the group. All principal income lines reported growth relative to the prior year. The growth in fee income reflects the higher average level of FUMA. Commission income benefited from higher transaction volumes as markets recovered and activity increased ahead of the November budget. The increase in net interest income includes interest relating to cash balances on IW&I portfolios being recognized on this line following migration, prior to which it was recognized within other income. So the other income line, therefore, shows a corresponding reduction. The increase in net interest income also reflects income synergies realized as a result of the higher interest -- net interest margin generated by Rathbones' banking model relative to IW&I's client money model. The reductions in the U.K. base rate that have arisen so far have had a relatively limited impact on the net interest margin due to margins on deposits being maintained so far and the effect of the group's treasury investment strategy, which has a delaying effect in terms of how quickly the base rate reduction feeds through to our net interest income. On advice revenues, we increased -- those increased as we look to increase a portion of our overall client base that receives the advice services in addition to investment management services. We'll look now at income margins. The margins shown on the slide are based on gross FUMA of the relevant segment, i.e., prior to group eliminations. All revenue margins have shown resilience with both fee and commission margins for the Wealth Management segment increasing year-on-year. The Asset Management fee income margin has shown some decrease as the mix of funds continues to shift more towards multi-asset funds, which have a lower annual management charge relative to single strategy funds. Our treasury income yield, which is based on the total value of the group's liquidity, increased from 225 basis points in 2024, reflecting the margin on deposits being maintained, as I touched on earlier, following the recent base rate reductions along with that benefit of our treasury strategy -- treasury investments profile, which means that interest received is not immediately impacted by reductions in the base rate. Turning now to synergy delivery in relation to the IW&I integration. Synergies delivered at the 31st of December 2025 amounted to GBP 76 million on an annualized run rate basis. That significantly exceeds our target of GBP 60 million and is delivered well ahead of the September 2026 target date we originally set at the time of the transaction. Synergies delivered during the second half of the year have been driven predominantly by the decommissioning of the IW&I operational platform following migration of IW&I clients onto the Rathbones platform. With the synergy target exceeded and the integration now complete, we consider 2025 to mark the end of the period of synergy delivery relating to the IW&I integration. However, cost discipline remains the highest of priorities, and we continue to see some opportunities for further efficiencies to be achieved, which we will deliver during 2026 as we optimize the operating platform systems and processes. We'll now look at those costs, which are recognized as non-underlying costs. The categories of those costs, which are recognized within non-underlying, is consistent with prior years. Amortization of intangible assets of GBP 45 million reflects a continuing run rate for that cost line. IW&I integration costs reduced significantly relative to the peak in 2024. We continue to incur -- we will continue to incur costs related to the integration of IW&I up to and including 2027. Those costs that will be incurred in 2026 and 2027 mainly relate to share-based awards that are expensed over the vesting period, which related to the integration. Taking into account the costs relating to those awards that will recognize -- part of which is recognized directly in reserves at the time the awards actually vest and the elements of property-related integration costs that were funded by Investec, we continue to expect the total integration costs to remain within our original guidance of GBP 177 million. Our effective tax rate for the year of 26.6%, we expect that to remain around that level during 2026. So I'll now move on to look at our capital position. Managing the group's capital in a disciplined and efficient manner is of the highest importance to us. We announced our capital allocation framework last year, which sets out our approach to deploying capital. Delivering organic growth and returning to positive net inflows of FUMA is our primary objective. The decisions we make to invest in the initiatives that will support organic growth are assessed with discipline to ensure they are fully aligned with our objectives and will deliver the appropriate return above our cost of capital. Given the importance and focus we attribute to organic growth, the threshold for investment in inorganic growth is currently very high. We maintained our progressive dividend policy and have announced today the proposed increase of 6p to take the total dividend to 99p. Over the past 20 years, as Clive referenced earlier, the annual growth rate in our dividend has been over 6% per annum. The dividend in 2025 will be fully covered as a result of the increase in statutory earnings, which reflects the reduction in integration costs. Two weeks ago, on the 16th of February, we announced the completion of the buyback of GBP 50 million of share capital, which was the first buyback we've undertaken. The group remains highly capital and cash generative with profit converting to cash over a relatively short cycle. And the rate at which capital will be generated going forward has increased as synergies have been realized and the level of integration cost reduces. So consequently, with adequate capital to support our investment in organic growth, we have today announced an extension to the initial buyback program. And subject to regulatory approval, we'll undertake a further buyback or an extension to the buyback of GBP 20 million of shares. Looking now into 2026. I'm going to set out our guidance in 3 main elements: first of all, in terms of our overall margin and how we expect that to progress over the course of 2026; I'll then cover our expectations relating to specific income streams; and finally, I'll cover aspects of our cost base. So the guidance this year is more detail than I would normally set out, but I feel that's necessary in order to explain what is a relatively complex picture as we move out of synergy delivery and invest in strategic priorities and maintain our focus on continuing to improve the efficiency of the cost base. In overall terms, whilst these factors put some downward pressure on the margin in the first half of 2026 relative to the run rate at the end of 2025, we ultimately expect to achieve our 30% margin target in the fourth quarter of 2026. So I'll begin with our margin guidance for 2026. I set out this time last year the path to a 30% underlying operating margin that took into account the additional cost headwinds that have arisen since the 30% margin target was first communicated at the time of the IW&I transaction. The path showed synergy delivery increasing the margin to 28% with the remaining uplift to 30% dependent upon organic growth in FUMA. The path was also underpinned by the assumption that the impact on the margin of cost inflation would be offset by market-driven growth in FUMA. Whilst market appreciation has offset the impact of inflation and synergy delivery has exceeded the original target, those benefits have been broadly neutralized by net outflows during 2025 and the additional cost headwinds we communicated with our 2025 half year results, along with our continuing expectation of a reduction in net interest margin as the base rate falls. Taking all those factors into account, we remain on track to deliver a 28% margin in Q4 as a result of synergy delivery, and we continue to expect to deliver a 30% margin from the fourth quarter as a result of further cost efficiencies that we have identified and will deliver through continuous improvements in systems, processes and our operating model. The achievement of a 30% margin from the fourth quarter of 2026 is based on growth in FUMA of 3% during 2026, stable inflation and interest rates being in line with current market expectations. We expect the margin in the first half of 2026 to be notably lower than the second half, reflecting the one-off investment we will be making to consolidate our client life cycle and relationship management systems using Salesforce and XPlan, which will replace InvestCloud. That will increase the first half cost relative to the prior year by GBP 9 million and by GBP 7 million for the year overall. We expect the margin to show significant progress during the second half as this investment is completed and the benefit of further cost efficiencies begin to come through. We expect the overall margin for 2026 to be broadly consistent with the second half of 2025 being in the upper 20s range. And that margin guidance takes into account all movements we expect to see in income and costs during 2026, the more significant of which I'll now just briefly cover. Within our income streams, fee income will, of course, be dependent upon the level of FUMA, which started 2026 significantly higher than the average for 2025. Commission income is expected to be around 5% lower than 2025 as volumes normalize following the heightened levels of activity in 2025 that I've referred to earlier on. Net interest income is expected to be broadly flat year-on-year, and that's a net effect of 3 factors: first, a reduction in the income margin as the effect of recent base rate reductions flows through fully, along with the effect of further rate cuts that are expected during 2026, for which we're assuming the U.K. base rate will be 3.25% by the end of the year; secondly, we see -- we'll see further synergy -- the further -- a full year of the synergy benefit resulting from IW&I's client money balances moving on to the Rathbones banking model; and thirdly, the recognition of a full year of interest income on the net interest income line relating to the IW&I business, which was recognized within other income prior to migration. And with regards to advice income, we expect to see a similar rate of growth as we've seen in 2025. We continue to see significant opportunity for growth in our advice revenue, and whilst we see -- expect to see that, greater momentum is expected once we've established closer alignment between our investment managers -- investment management and advice offerings during 2026. Costs in 2026 will benefit from a full year of synergy delivery, bringing an additional GBP 16 million of benefit to 2026. Expenditure to support our strategic objectives includes the investment to consolidate our client life cycle and relationship management systems, which I touched on just earlier. We have also expanded our change capacity in 2026 as we look to accelerate the continuous improvement of our systems and processes. Staff costs are expected to be around GBP 10 million higher in 2026, driven predominantly by inflationary salary increases. The new client-facing remuneration scheme for the combined business was implemented within the existing level of cost but did involve some rebalancing of fixed variable costs -- fixed variable remuneration as we achieved alignment across the combined business. Inflation will, of course, continue to affect non-staff costs, but we do not currently expect to see a significant increase in the FSCS levy. Integration costs, which are reported within non-underlying costs, are expected to be significantly lower in 2026 at around GBP 17 million for the reasons I covered just earlier. So I appreciate the guidance. That guidance has covered a lot of ground, so I'll finish by just coming back to the main point, which is that whilst there are factors that will influence the level of the margin over the course of the year in 2026, based on our assumptions relating to FUMA, inflation and interest rates, we remain on track to reach a 30% margin in the fourth quarter of 2026. And with that, Jon and I will happily take your questions. Benjamin Bathurst: It's Ben Bathurst from RBC. I've got questions in 3 areas if I may. Starting with FY '26 guidance, lots of moving parts, clearly. But with synergies now secured, what do you expect to be the equivalent of that GBP 31 million PBT benefit that you show on Slide 8 for 2025? What do you expect to be the equivalent for FY '26? And then secondly, on capital, as you mentioned, integration costs behind you, you should be more capital generative looking forward. Should we consider further future buyback as highly likely? And then just on the sort of the capital position at the year-end, GBP 108 million, I think, after the buyback, screens are slightly high. Are you holding back something there potentially for bolt-on activity? And then just finally, on the Salesforce versus InvestCloud decision, what are the benefits that have really informed your decision to invest again and incur that incremental cost? Iain Hooley: Thanks, Ben. So taking those in turn then. So the synergy benefit for 2026 will be GBP 16 million, so that's effectively the full year of the 2025 synergy delivery coming through in 2026. So that will be an additional GBP 16 million. So that's in the guidance. In terms of the buyback, the reason we've gone for an additional GBP 20 million is because we could accommodate that within the existing program. And then the existing program involves -- doesn't involve Investec participating. So as we buy shares back, that concentrates Investec's holding back to closer to where it originally was at the time we did the -- when the transactions happened, not beyond that, of course, but up to that level. So it was simple to bolt that on and accommodate within that existing framework. If we want to go beyond that, things get a little bit more complicated. We need to go through a process to agree how we would manage that process of Investec's participation. So we continue to apply our capital allocation framework. We're fully committed to that. To the extent that we have capital that goes beyond our investment needs, we will continue to return that capital to shareholders. So we're not setting that out as a hard and fast rule, but you have our assurance that that's a discipline that we are very much focused on. I think that hopefully covers that capital question. Yes. On the CLM, the capital -- the InvestCloud decision, I mean, I think ultimately, we implemented InvestCloud to replace the -- to be our client life cycle management solution. I think it's fair to say it hasn't delivered everything we wanted it to. We've got some marginal benefits from it, but we see greater opportunity in moving on to the Salesforce system given the strategy and the focus on organic growth and building the foundation that will enable us to -- that will support that growth. So that's behind our decision to do that. And we feel we can implement that during the first 9 months of 2026. We've got Brad and Mike who are involved in that execution and very much focused on that. We already use Salesforce and XPlan in the business. So we have a high level of confidence that those will be readily implementable within that time frame. Christiane Holstein: This is Christiane Holstein from Bank of America. I also have 3 questions. So firstly, maybe on net flows. So I know gross inflows started to improve towards the end of last year, but it still does seem a little softer following the IW&I integration. So just wondering what your expectations are there. And then if the guidance for 3% per annum growth for FUMA, does that imply expectations for still net outflows in 2026? Or how are you thinking about, yes, flows versus performance there? My second question is also on the client life cycle and relationship management system. So I understand with the whole shift in technology systems previously through IW&I that did impact IM productivity as they got used to the new systems. Could there be any potential for productivity impact here as well or just a teething process? And then my third question is on advice. So previously, this was quite a very exciting part of the business and potential for future growth. Just wondering how you're thinking about that now with risks for AI being front and center. And then how advice also now contributes to the margin target. Jonathan Edward Sorrell: Yes. Thank you. So look, on flows, traditionally, we wouldn't comment on an outlook for flows specifically. The job now, as we'll talk about later, is to generate sustained net inflows going forward. I wouldn't read anything into that 3% FUMA beyond we're giving you a framework to think about what needs to happen in order to hit that margin target in Q4, and we're confident on the basis that Iain laid out with respect to FUMA growth, whether that comes from flows or the market this year and then what happens to interest rates and inflation. On the CLM system, you're right, I think the implementation of InvestCloud had, had an impact on IM productivity. The good news about moving to a solution that really combines Salesforce and Xplan is that those are 2 systems that are already part of our business, and so people are, to a greater extent, used to them already. But of course, there will be some friction on the implementation of any new system. But I wouldn't expect it to have the same magnitude of impact that we saw with InvestCloud. And then with respect to advice, not to steal any thunder from what's coming later. But it's just to say it is a very exciting opportunity, and with respect to AI, we see just potential huge benefits in terms of the productivity that will bring. And AI won't obviate the core of what our value proposition is to clients, which is trust and empathy and judgment, and you can take what AI brings you and add those elements and indeed spend much more time on them. David McCann: It's David McCann from Deutsche Bank. I'll stick with the traditional 3 as well, please. And we'll start on that 3% again just to follow up on that previous question. So I obviously hear your comments. You're not going to comment on the flows and what we may or may not be able to read into that 3%. But should we better think of this as that's the minimum level you need to get to 30%? So presumably, if FUMA growth was more than 3%, we should expect more than 30%? That's the first question. Secondly, what is the dividend policy or payout ratio or growth however you're thinking about that going forward? That would be useful. I think traditionally, you've steered us in the direction it's like 2/3 payout ratio, but maybe that's no longer the right way to think about it. So yes, that would be useful. And then finally, the investments you're talking about, is all of this going to be OpEx? Or is some of this CapEx? Iain Hooley: Okay. So just on the 3%, I mean, we've just made that assumption within there. And if FUMA grows, from whatever means, by 3%, then we will hit that margin target. I mean, clearly, we've got opportunities to invest as well as letting if any further future benefit if there's a further growth beyond 3%. But that, we think, is a reasonable basis on which we can deliver that 30% margin target. On the dividend, we don't set up the payout ratio as such, but our dividend policy remains progressive, and you can see from our track record how that progression has played out over the years. It's all part of the capital allocation framework. So to the extent that we generate more capital and there's a headroom between the dividend and total capital we generated beyond what we need to invest in the business, then we will continue to return that surplus to shareholders. And OpEx, yes, in terms of the investment in the strategic initiatives, yes, we don't envisage that being capital investment as such. We can see that being accommodated within our existing cost base. It's really about reprioritization of things. We can achieve further synergies in certain efficiencies in certain areas and redeploy that capital to areas that will deliver a better return. And that's all part of our capital discipline that we apply to all of our decisions that we want to make sure we are deploying capital and resources in the right place that delivers the right return. Jacques-Henri Gaulard: Jacques-Henri Gaulard, Kepler Cheuvreux. Just one really. Thank you very much for the guidance on the operating margin, super comprehensive. But at the end of the day, if there is growth, is it worth remaining married to it? And would you remain married to it come to 2027 if the momentum of the business is actually good? And why not spend more money for one given set of growth? Jonathan Edward Sorrell: You only had one question? Jacques-Henri Gaulard: Yes. Jonathan Edward Sorrell: Unheard of. Look, the 30% margin target is for Q4 of this year. I think your point more broadly longer term is exactly right. I mean what impacts our margins, obviously, some things are beyond our control, market movements, so on and so forth, interest rates. And I've received much feedback from shareholders that one shouldn't marry yourself to a target long term when there is growth to be had. So I'm sure we'll have a sensible discussion about that going forward, but the 30% target pertains to Q4 of this year. And on the basis that Iain laid out, we're confident of hitting that target. Okay. Any more questions? Perfect. Well, we're going to allow ourselves a 10-minute break if that's okay. And there's coffee outside. And if we could be back in here for 10:51, let's call it 10:50 -- 9:50 rather. 9:50, that would be great. Thank you. And I'll try and tell the time. [Break] Jonathan Edward Sorrell: Okay. Thank you, everyone. I hope you enjoyed the break, and welcome back. Rathbones today stands at a moment of real opportunity, better positioned than we were 2 years ago, more settled than we were a year ago and more focused than any time since I joined. Over the past 2 years, we've succeeded in completing the largest integration in our industry's history to create a platform that is ready to perform. As Clive said, that involved enormous hard work, resilience and professionalism. And to our colleagues around the firm, I would just like to thank them for that extraordinary effort. To Paul Stockton and the team that delivered that integration, thank you for the opportunity that you've given us. And to our partners at Investec, thank you for your continued support. That chapter is complete, and now we move forward. Our vision is to build the best wealth manager in the U.K. by far, not because we're there now but because we aspire to set the standard in our industry. That's what our clients expect and deserve, and it's what we are committed to delivering. We operate in an attractive market that offers long-term growth, and we're already one of the leaders within it. We have the scale to invest in our capabilities. Our client base is strong. Our people are terrific, and our brand built through generations is trusted. Those are real advantages. But we do recognize that those advantages have not yet translated into organic growth. Recently, our growth has just not reflected the strength of our capabilities. Net flows have not been where they've needed to be. So our focus now is on execution and on delivering sustainable organic growth. The responsibility for that execution sits with me and our executive team. One day, we'll have the opportunity to participate in further consolidation in our industry, and we should be able to create very significant value when we do. But today, the greatest value is to optimize what we already have. If we execute well, our business has a powerful value creation algorithm. Durable growth across the cycle, whether that's through flows or performance, improving operating margins and strong capital generation all result in compounding shareholder returns, whether through earnings growth or multiple expansion. Today, I'll set out where we are, why the opportunity is compelling and how we'll measure progress. We have the platform. We have the team. We have the strategy. And now we must prove it. So before we look forward, it's worth remembering where Rathbones has come from. In the last 2 decades, the business has increased tenfold in terms of assets under management as a function of around a dozen deals, culminating, of course, in the combination with IW&I itself, the product of several acquisitions. And that means, today, we run GBP 116 billion of assets for over 119,000 clients. That scale is not the objective in and of itself, but it does give us the ability to invest in our people, in our technology, in our investment and financial planning capabilities and to deliver ultimately better outcomes for clients. Now the market we operate in offers real growth potential. U.K. household wealth stands at some GBP 2.8 trillion and is expected to grow to GBP 3.5 trillion by the end of the decade. One of the fastest-growing segments within that is clients with GBP 1 million to GBP 5 million of assets, and that's exactly where Rathbones is most concentrated. Demographics, regulation and significant intergenerational wealth transfer are driving sustained long-term demand, while the U.K. remains structurally underinvested in equities with too much wealth invested in cash. So this is not a cyclical opportunity. It's, rather, a long-term structural one. Now this slide is actually my happy place, where our opportunity becomes very, very real. We've identified a target market of nearly 3 million people in the U.K. who fit our potential target client profile, and today, we just serve 119,000 of them. That gap tells you everything that you need to know about the scale of the opportunity in front of us. This is not about stretching our proposition or chasing marginal targets. It's about reaching far more of the right ones earlier and quicker. We, and when I say we, Simonetta, knows exactly who they are, where they are and what they need, and we have low share across every segment. That gives us confidence to be much more intentional through digital acquisition, partnerships, business development and referrals in taking Rathbones to the market. Now the value of our business is in the longevity of our client relationships. The earlier we get clients onboard, the better. So instead of thinking about minimum account sizes, we want to think about the present value of our relationships. And we're not going to wait for that growth to come to us. We're going to go out there and find it. So we have a leading position in a market with long-term growth potential and a sizable opportunity ahead of us. We also have a right to win, which comes down to 3 things that are really hard to replicate. First of all, we're a pure-play wealth manager. We're not competing for resources with other parts of a broader group. We're not a distribution channel for someone else's products. That focus and specialism really matters to our clients and to our people. Second, we deliver comprehensive advice through a single long-term relationship, whether it's investment management, financial planning, trust, tax, banking, legal, not as fragmented products but as integrated counsel. Clients don't want to coordinate multiple advisers, and they want one trusted relationship that understands their full picture. This means we deliver excellent service standards. It's not just us saying it but our clients, for example, through our Trustpilot score of some 4.9, which is industry leading. Third, we've built deep expertise in segments where this model matters the most. Our private office, our charities, our court of protection businesses, ethical investments, intermediaries, international clients, these are not mass market segments. They require judgment, continuity and trust that's built over years, not quarters. Add to that our national footprint, our growing digital capabilities and the credibility that comes with the scale that we have, our public company status and a strong balance sheet. That is our right to win, and very few firms can match the quality, the depth, the continuity and the trust that we bring to clients. And even fewer can do it with scale whilst constantly raising standards. So we talked about the market opportunity, the clients that we're targeting and why our proposition stands out. The next question is how do we deliver this consistently at scale without losing what makes us distinctive. And the answer is that we built the business around 2 complementary capabilities. First, wealth management, over 700 client-facing advisers with deep tenure, 17 years on average for investment managers, 10 for financial planners, and that continuity matters because we know wealth is personal and long term. Clients get breadth and choice, full discretionary management, managed solutions, platform propositions and increasingly deep financial planning. We can tailor service intensity without losing the relationship model. Second, institutional quality investment capabilities through Rathbones Asset Management. RAM is a really special business. In my last 3 roles, I think I've met about 2,000 investment firms around the world, and it is exceptionally rare to see a culture that has produced sustained alpha over such a long period of time. RAM was established in 1989. It now manages GBP 16.6 billion across 29 funds. The team combines a boutique focus with strong discipline, 37 investment professionals averaging 25 years of experience, 16 of which are at Rathbones itself. And here's why that matters for our clients. RAM directly enhances our wealth propositions where it delivers clear performance advantages. The multi-asset engine powers our managed Select and MPS offerings with scale and consistency. Our growing range of single strategy funds strengthens that even further. RAM also drives our unified sustainability and stewardship approach. By bringing together Greenbank stewardship and RAM's research teams, we apply one philosophy across all propositions, including charities. So that's one standard and one approach. And the result is better outcomes, greater efficiency and more consistent wealth proposition across the group. RAM operates at arm's length with clear governance and oversight, ensuring accountability and keeping the focus firmly on client outcomes. It still though allows that expertise to flow across the group. We use RAM funds only where they deliver clear performance advantages for clients, and that discipline protects both the relationship and the outcomes. So this is a wealth-led business strengthened by disciplined investment capabilities. And with that foundation in place, let me now turn to our vision and what it means in practice. So as I said, our vision is to be the best wealth manager in the U.K. by far, again, not because we think we're here today but because we think this business has all the ingredients it needs to set the standard in our sector over time. Being the best for us is not about scale for its own sake. It's about delivering consistently strong outcomes for clients and building a business that performs sustainably through cycles. The question is not what we aspire to be. Now it's how we turn that ambition into reality and how we hold ourselves to account along the way. So turning that vision into action means being clear about what excellence looks like in practice, and for Rathbones, it comes down to 4 things. First, we must be the first choice for clients. That means having a world-class investment capability, advice that supports clients through their entire life cycle and a service experience that is proactive, personalized and effortless. Second, we must be the first choice for talent because long-term client outcomes depends on the quality and the motivation and the judgment of our people. Third, we have to be a really effective operator, simplifying how we run the business, using data and technology intelligently and allocating capital with real rigor. And finally, we are going to be the most reputable brand in our market, one that earns trust consistently through how we behave, not just what we say. These are demanding standards. We're deliberately setting the bar high, and we'll measure ourselves rigorously against each of them. Progress will be transparent and performance will be clear. So those are the 4 standards we're holding ourselves to. Let me now take each in turn, starting with the most important one, being the first choice for clients. So as I say, to be the first choice for clients, 3 things matter above all else: first, the world-class investment capability because long-term outcomes are the foundation of the trust that we have with our clients; second, advice and solutions that are honed for the entire client life cycle, supporting clients not just at a point in time but as their circumstances evolve and as Camilla is fond of saying, the right advice to the right client at the right time for the right cost; and third, a proactive, personalized and effortless service experience because performance is not enough in and of itself. So let me start with our investment capability in wealth, and then I'll move on to Asset Management. At its core, Rathbones is a long-term investment house built on judgment, discipline and stewardship of capital. We think in years and decades, not quarters, and we approach investing with a real ownership mindset. Our portfolios are constructed deliberately with thoughtful diversification, active risk management and a total portfolio perspective so that clients' capital is protected in difficult markets and positioned to compound over time. It's not about chasing short-term performance or fashionable themes. It's about consistent decision-making, valuation discipline and accountability for outcomes. And with a new CIO in place subject to regulatory approvals, we're strengthening our investment philosophy, sharpening that accountability and raising the bar on consistency, importantly, while preserving the judgment and independence that have always defined us. That combination, the long-term thinking, the disciplined risk management and accountable decision-making is what we believe defines a great investment house, which is what we aspire to be. Let me say a word on Asset Management because it matters, as I've said, to how this group invests and how we think about capital. Rathbones Asset Management is genuinely differentiated not because of any one individual but because of the culture and the structure it has built over time. And as I say, it's rare to see a business that has supported such consistent alpha generation over long periods without drifting into a hero culture or style dilution. The model is deliberately simple, small, empowered teams supported by high-quality external and internal research, making independent high conviction decisions. That clarity of responsibility is important and portfolio managers own their outcomes. Crucially, though, that freedom is balanced by strong institutional oversight. We've implemented Charles River and MSCI BarraOne to ensure that every risk taken is intentional, measured and continuously monitored. The underlying philosophy then essentially mirrors wealth, invest in quality businesses at sensible valuations, diversifying intelligently and adjust positioning as conditions change. The smaller teams retain that agility and judgment that many larger organizations might lose, and that's without sacrificing discipline. The second pillar of being the first choice for clients is advice that supports them across their entire lives, and financial planning is central to that. Today, planning penetration is around 14% by FUMA and 11% by client. With SHL now fully integrated, planning is happening more organically, but increasing penetration is a behavioral and a cultural shift across the group. This will build steadily rather than overnight, and we're certainly realistic about that. But where planning is embedded well, the impact is very clear. Offices like Manchester and Newcastle have developed what I would call a natural reflex to bring financial planners into client conversations. And that just creates a stronger, more joined-up proposition, and it's driving better flows. You see it in the numbers, deeper relationships and stronger retention. Planning really anchors the relationship across tax and retirement cash flow and succession and gives us continuity through generations. It moves us from managing portfolios to helping clients make better decisions over time. That is why the disciplined expansion of financial planning is one of the most important drivers of both better client outcomes and sustainable organic growth. And I'll just give you a very simple illustration of how this works in practice. In a number of cases, we already might manage a meaningful portfolio for one family member, while other assets sit elsewhere, often in pensions or outside the immediate relationship. By bringing financial planning into the conversation, we're able to identify those assets, align them to a client's wider objectives and consolidate management where it makes sense. That not only brings additional assets under advice, but it also surfaces future flows and opens up conversations around succession and intergenerational planning. But what matters most is that, that pattern is repeatable. So where teams really embed planning naturally, as I say, we see stronger flows, deeper relationships and better retention. And as I say, performance and advice only goes so far and clients also expect a service experience that feels personal and effortless. Our teams deliver this every day. With long-tenured investment managers and financial planners, clients benefit from real continuity, people who know them, understand their circumstances and provide consistently high levels of satisfaction through regular personal interaction. That human relationship remains the differentiator, particularly as clients' lives and finances become more complex. Client expectations are evolving, and we are deliberate about how we use technology to support that. We're investing in hybrid digital delivery to give clients flexibility and choice in how they engage with us, while maintaining the human connection that sets us apart. As part of that, we've listened carefully to client feedback following the migration. There were features in the Investec app that clients valued and selectively, we're bringing many of those capabilities back where they improve the experience. But at the same time, we have to be very clear about what we are and what we are not. Rathbones is not a DIY platform and our app does not need to replicate every possible function as a result. Its role is to give clients clarity, visibility and ease, acting as an extension and not a replacement of the advice or the relationship. So when I joined Rathbones, I became a client. I used the MyRathbones app most days. And I give the team plenty of feedback on how to make it better, and I know they appreciate that enormously. But jokes aside, this does reflect a real step change in how we serve clients digitally. And in recent months, we've introduced value over time reporting. We've improved accessibility, and we've strengthened resilience behind the scenes by removing dependencies on overnight processes amongst other things. And so that's exactly how we're modernizing. The human relationship stays absolutely central and digital simply makes the experience clearer, easier and more effortless for our clients. So that's the promise to our clients. Now let me show you how we measure whether we're delivering it. So before you all get too excited, we're not going to set explicit targets in every area that you see here. Instead, what we're doing is giving you ways of seeing how we're progressing against the standards that we've set ourselves. And these are metrics we monitor very closely internally. It's also important to be realistic. This is a journey. It's not an overnight shift, and these indicators aren't going to move in a straight line, and we don't expect to be best-in-class immediately. But what matters, of course, is the direction of progress over time. Because many of these measures are more meaningful over longer horizons, we'll report on them annually. So starting with investment capability. In wealth, we'll track for you asset-weighted annualized performance over 3 and 5 years versus ARC. In Asset Management, we will look at the percentage of assets outperforming benchmark or objective over 1 and 3 years. Second, financial planning penetration. As I mentioned earlier, we see a clear opportunity to learn from those top-performing offices and embed those behaviors more consistently across the group. And third, our Trustpilot rating. It's just one measure, but it's a proxy, if you like, for whether we are delivering a proactive, personalized and effortless experience, although this is something that Simonetta ensures we measure in many ways with samples of our client base. Over time, improvement across these measures should translate into better outcomes and ultimately stronger, more sustainable flows. So those are the measures that we'll use to show progress as the first choice for clients. And if we're the first choice for clients, we'll be well on our way to being somewhere that people want to work. And as I outlined, none of what I outlined is deliverable without the right people in the right environment, and to achieve our ambition, we also have to be the first choice for talent. If we want to deliver for clients and grow sustainably, we need people who choose Rathbones. They stay at Rathbones. They develop their careers at Rathbones and they do their best work here. And that, for us, comes down to 3 things: a great culture to work in; the right incentives to attract, retain and motivate our people; and AI-powered tools and processes that make doing business easier rather than harder. Let me take each of those in turn. Our culture is one of Rathbones' greatest strengths, and it's built on a total commitment to clients, a long-term mindset, collaboration and deep relationships developed through long tenure. But to deliver our strategy at the pace that's required, we just need to sharpen some of those behaviors. We need greater clarity and simplification, so teams focus on what matters most. We need more pace and intent with decision-making, and we need collaboration that brings in diverse views without slowing us down. So like all strengths, if overplayed, they become a risk. Bespoke approaches can add complexity. Consensus can slow decisions and long tenure without progression can dilute accountability. So our aim is simple. It's to keep what makes Rathbones special while strengthening the behaviors that will help us grow and succeed in our next chapter. Now our long-term success depends on the quality of our people across the whole organization. Skills, knowledge, judgment and stewardship matter everywhere at Rathbones, whether you're managing investments, advising clients, supporting front office teams or enabling the business to run well. And we want it to be clear to everyone what great looks like, how careers can develop here and what is required to progress. Today, our training is comprehensive. It's functional but perhaps a little fragmented. It builds technical capability in pockets, but it doesn't consistently develop institutional judgment at scale. At the same time, our industry faces, as we know, a growing shortage of experienced financial planners. And if we want to grow sustainably, we need to train more of our own. I'm very excited to say that our new Rathbones Institute will address both. It's going to create a unified approach to developing capability across the firm, strengthening technical expertise, deepening judgment and client stewardship and making career paths and expectations clearer and more consistent. It will support the next generation of investment professionals, planners and leaders while also raising standards and consistency across the whole organization. The model is deliberately focused and scalable, a senior leader soon to be recruited, a small central team and an AI-enabled digital learning platform supported by internal and external networks, not in a large stand-alone academy. Costs will remain manageable, I assure you. Launching in 2027, the Rathbones Institute will strengthen our culture, deepen our talent pipeline, enhance the client experience and support long-term growth. The second pillar of being the first choice for talent is making sure our incentives drive the right behaviors. We want every decision at Rathbones to start with a simple question. How does this help our client? Everyone contributes here to the client experience, so everyone has a role in growing the business, and our incentive structures now reflect that. For front office teams, we introduced a new remuneration scheme this year. It's simple, transparent and formula-driven, reinforcing sustainable growth and the behaviors that matters most for our clients. For enablement teams, we've introduced the Rathbones Growth Unit Scheme. This is paid in shares over 3 years and linked to improvement in net flows in wealth, and it ensures that colleagues who support client-facing teams share directly in the value that they help create. Together, these incentives send a clear message: when we grow in the right way, deliver for clients and work as one team, everyone shares in that success. Now this slide brings together our approach to AI and more broadly, how we're using technology to make doing business easier across Rathbones. We recognize we're still just in the foothills of the application of AI, but the potential is real, and we've only just seen its impact. Our approach is pragmatic. It's governed and it's value-led. Copilot is now enterprise-wide. In the front office, AI is improving suitability processes and oversight. And across our data and client platforms, AI is already giving us cleaner data and much sharper insight. But one thing we've definitely learned is this. Technology only works as well as the processes beneath it. So alongside AI, we've been doing a lot of work to simplify and modernize core processes so that the technology can deliver at its best. We've set up what we call 2 swim lanes. The first is removing friction, and we identified, back in the summer, about 100 friction points in the business that have already been addressed. We've actually knocked about 80 of them on the head. And as people see those issues being fixed, they've surfaced about another 75, which is exactly what you want, a culture of continuous improvement rather than just acceptance of workarounds. But I use those numbers to demonstrate the intensity with which we are addressing those issues. The second swim lane is reinventing some of our core processes. This is a big opportunity. We started with onboarding and a team disaggregated that process into around 1,000 features. And we have identified 90 improvements that are in the pipeline. We're about 1/4 of the way through at this point because this is where productivity and the client experience are won or lost. So looking ahead, the next phase is deeper integration, extending AI right into core workflows with governed agents across all functions, front office, finance, risk, compliance, people and so forth. On AI itself, the potential is huge. We don't know exactly how long this is all going to take, but the rate of improvement is really, really encouraging. If we systematically embed these capabilities into how we operate and advise, the prize is significant, higher quality of service, much cleaner execution and materially better productivity, all while keeping human judgment and relationships at the center. We are delighted to have Brad here leading the charge in this respect, and as I commented earlier, he does seem a little high on AI, which is great. So whether it's culture incentives or technology, the common thread is the same. We're trying to make it easier for our people to do great work. As with clients, the key question is how do we know this is working. And that brings me on to how we measure progress as the first choice for talent. So we'll measure and report progress on this goal. The first is employee engagement because people, obviously, who are engaged do better work, make better decisions and better outcomes are delivered for clients. The second is the retention of high-performing and high-potential colleagues. That tells us whether people see a future for themselves at Rathbones and whether our culture, development and incentives are working. And the third is the adoption of AI and digital tools across the business, not as a technology scorecard but as evidence that processes are becoming simpler and that our people have better tools to do their jobs well. These aren't the only measures we use internally, but they provide a transparent way for you to see whether we're creating an environment where people can thrive and whether that is translating into stronger execution and over time, better outcomes for our clients. So our third strategic objective is to become the most effective operator in our industry. And for us, that comes down to 3 things. First is sharpening our commercial focus, using data consistently to guide decisions and allocate effort where it creates most value. Second is simplifying how we operate. So the firm is integrated, efficient and genuinely easy to do business with for clients and colleagues alike. And third, applying real discipline to how we deploy capital, ensuring that every investment we make earns its place and delivers meaningful returns. So I'll take each one of those in turn, starting with commercial excellence. So let's talk about how we use data to improve the quality, consistency and effectiveness of our commercial performance across both inflows and outflows. Our first priority in becoming a more effective operator is sharpening this commercial performance. And we're doing that by using data far more consistently across the business. To put this into context, currently, we generate about half of our flows from existing clients and the other half from new clients, a sign, if you like, of strong relationships and strong market appeal. The question then is how we build on that momentum. So we're doing that by focusing on the segments where we create the most value, for example, professionals, business owners and executives, supported by stronger brand visibility and more targeted digital acquisition. And within our existing client base, financial planning, as I've said, remains a powerful lever for engagement and ultimately, share of wallet. At the same time, we are reshaping client-facing teams, so they have the capacity, capability and data to act earlier and more effectively, supported by a much more integrated approach across Jayne's world in distribution, Sim in marketing and Camilla in Wealth. And I just want to give you one illustration of the behavioral shift that this is driving. And this is one of my favorite stories from my time at Rathbones so far. We've been working with a small group of colleagues. We've christened them the cubs, who've been in the firm for about 10 years, generally actually from graduates. And they were looking for opportunities to go out there and win new business. So we started with a small pilot group, supported by coaching and by data. And they collectively, this is 12 people, reached out to about 1,000 prospects in the first 12 weeks. And the early results from that outreach are really encouraging, and that group of 12 has now scaled to a group of 75 across the front office, all of whom are now embarking on the same thing. And that embodies exactly what we're trying to do. We want to go out to where the business is. We want to do it in a way where we support people with coaching, make it more effective with data. And who knew, it's easier than people thought, and it's a lot more fun. And it's going to be really rewarding because of the incentive scheme that I mentioned earlier. So all of this is underpinned by more rigorous performance management and commercial excellence coaching, and that's going to drive consistency and productivity and ultimately, stronger inflows. We're applying the same thought and discipline to outflows. Again, to provide context, roughly 60% of our outflows relate to spending, and the rest is split equally between mortality and taxes on the one hand and client departures on the other. Our focus is on identifying risk earlier, acting more consistently and meeting more client needs within Rathbones. We are introducing a predictive AI-enabled model that flags assets at risk sooner, giving advisers more time to intervene. And that's alongside a standardized business-at-risk playbook so that our responses are consistent and effective. We're also strengthening our proposition at key moments, including retirement and expanding services that deepen loyalty. As I've said earlier, financial planning remains one of the most powerful levers for retention. When clients move to a holistic plan, engagement and longevity increase materially. So I'll give you an example. A long-standing family that has more than GBP 10 million of assets with us told us they were considering moving to a competitor, offering a so-called one-stop shop as they entered retirement. Because of the strength of the relationship we had, they were open about it, and we responded quickly, bringing together investment management, planning, legal and trust expertise in a single coordinated conversation. That client chose to stay. They expanded their use of financial planning, and they're now transferring additional assets as part of a multigenerational estate planning exercise. This is now the Camilla-Jayne playbook for rescuing situations and making something of them. The point is straightforward. We act early and present a genuinely integrated One Rathbones proposition. We retain assets. We deepen relationships and create more value for clients and then the shareholder. The second part of becoming the most effective operator is simplifying how we run the business. Post integration, we saw clear opportunities to remove complexity, strengthen alignment and operate in just a much more focused and efficient way. So first is our operating structure. We are going to bring related capabilities together to work as a unified team. A good example is integrating Greenbank's expertise into RAM and our central research teams, creating a single sustainability center of excellence with consistent research and stewardship across propositions. Second is governance. I've yet to meet anyone at Rathbones who wants another committee. So we are streamlining governance. We're reducing duplication, and we're simplifying decision-making so that accountability is clearer and pace improves. Third, systems and efficiency. You heard earlier about extending Salesforce and replacing systems that weren't working for us. Our new COO, Mike Turner, along with Brad, our CTO, is leading a unified platform -- program to modernize systems so that they're faster, cleaner and more aligned to how we want to operate. Enterprise AI tools now have about 95% adoption rates, automating routine work and reducing friction. Together, these changes are making the organization less siloed, more connected, more effective and freeing up time for our people to focus on clients. The third pillar of being the most effective operator is capital efficiency. We are applying much greater discipline to how we deploy capital. That means being selective about technology investments, ensuring that our marketing spend is directly attributable to flows and only pursuing team hires when it strengthens our organic growth trajectory. Every investment has to earn its place and improve returns on capital. Over time, this approach drives continuous improvement in how we operate, improves returns on invested capital and ensures that growth is both sustainable and value accretive. So capital discipline is the final enabler, making sure every investment earns its place and improves how we operate. The question then, how do we know this is working, and that brings me on to how we'll measure our progress. Our primary focus is a return to net inflows in wealth. We are not setting a specific target or time line, but we firmly believe this is achievable now that integration is behind us and the organization is aligned. We also want everyone to think of themselves as client facing, and we'll, therefore, monitor client-facing hours per adviser with the explicit aim of stripping out inefficient processes and freeing up time for advice, conversations and outreach. And finally, we'll apply strict discipline to capital allocation using return on capital employed as a core measure, ensuring that every investment, whether in marketing, technology or people, earns its place. So that's how we drive execution through commercial focus, operational simplicity and capital discipline and how we measure progress along the way. The final pillar is about how we are known. To sustain growth and earn trust over decades, we also need to be the most reputable brand in our market. Rathbones was founded in 1742, and that heritage really matters. But that reputation is -- it's not inherited. It's earned every day through how we behave and how we deliver consistently. Our focus is on 3 things: a relevant and distinctive identity, clear leadership grounded in purpose, and efficient amplification so that we stand -- so that what we stand for resonates more strongly with the audiences that matters most. It's not just about being louder. It's about being clearer, more consistent and more trusted. So in 2025, we refreshed our identity and our purpose, invest well, live well. This wasn't just a cosmetic exercise. It reflects what Rathbones has always stood for, helping clients make good decisions with their money so they can live the lives they want, expressed in a way that's clearer, more human and more relevant today. The characteristics you see on this slide underpin how we run the business, long-term thinking, unconflicted advice, deep relationships, high integrity. Feedback from clients has been really positive, and importantly, the fresh -- the refreshed identity resonates with a much broader demographic, which obviously matters if we want to grow while staying true to who we are. Reputation in our industry is built on trust, and trust comes from expertise, judgment and consistency. We build that trust by contributing meaningfully to the conversations that matter to our stakeholders, whether that's clients, colleagues, the media, policymakers or the communities that we serve. Through thought leadership, policy engagement and community outreach, we bring relevant expert insight. We look for areas where we have deep expertise and where our voice adds value in pensions, the budget and so forth. This is about showing leadership through real substance and in reinforcing that Rathbones is a firm that people can rely on through cycles. The third element is amplification, efficient amplification, making sure our reputation and expertise are visible where it matters. This has been an area transformed in the last 18 months or so. Our marketing, digital and public relations team work as one, amplifying content and insight through our own channels but critically through earned and paid media, social platforms and independent client review sites. We also bring the brand to life locally, events that matter to the communities in which we operate. And those events actually remain the bread and butter of client engagement in our industry, and we really do run some exceptional ones from the Chelsea Flower Show to LAPADA to our box at Lord's, where I'm still awaiting my invite, just to mention. I am a client. But what really differentiates us is discipline. We track the commercial performance of every event, every event, and Simonetta and her team use a rigorous methodology to attribute flows properly and understand returns on marketing investment. And last year alone, when our activity is just getting up and running, our marketing activity as a whole generated more than GBP 500 million of flows. And it's a clear example about how thoughtful brand visibility delivered with total discipline converts directly into growth. So to understand whether we are building the most reputable brand in our market, we track 3 objective measures: first, client advocacy. We monitor our NPS and our position relative to peers. The NPS is 63. That puts us second out of the 9 in our peer group that we monitor, and that's a strong foundation that we want to build on. Second, corporate reputation. This is assessed independently through an external reputation index using public data, and it forms the baseline for a more comprehensive measure now in development. As our identity purpose and leadership activity build momentum, we expect to see progress here over time. And third, prospect visibility. Our brand awareness and consideration among clients with more than 250,000 of investable assets today, that awareness figure sits at 33%, measured again through an independent national survey, and improving it is a clear opportunity. Together, these measures give us a rounded objective view of brand performance, how clients feel about us, how we're perceived publicly and how attractive we are to future clients. So Rathbones is entering a new chapter, and we are a leading player in an attractive and an expanding market. We have a strong right to win, supported by breadth, service and reputation. We have a clear strategy focused on organic growth, and we have a new executive team that is ready to deliver. And I believe we're uniquely positioned to be the best wealth manager in the U.K. by far. Thank you. And now we'll go to Q&A. Rae Maile: Just letting you get comfortable first. Jonathan Edward Sorrell: Someone else? No. Okay. Go on. Rae Maile: Rae Maile, Panmure Liberum. No, no one else goes first. Jon, I mean, you've laid out an awful lot which needs to be done over the course of the next 1, 2, 3 years. Out of all of those things which you've discussed today, what are the 2 or 3 which are most important to be cracking on with right now? And can you talk a little bit about the internal hurdles to actually achieving any of those? Jonathan Edward Sorrell: Look, I think this is, as you say, a pretty detailed strategy, and we're very clear on what we need to do here to drive growth. If you're forcing me to say what the 2 or 3 things are, I think if I had a button to push, it would be to put great technology into this business. So I think that's the foundation of a lot of what we're talking about. I think inculcating an appropriately commercial culture in the organization is a huge win to come. I talked about that group of cubs. It's just such an encouraging initiative with huge amounts of potential. And look, we have to make sure that from a process perspective that we make it really super easy to do business at Rathbones, and that will be the lubricant in the machine, the engine to get all of this going. So if you're going to force me to name 3 things, that's it. David McCann: Dave McCann from Deutsche Bank. Three questions linked to that presentation, Jonathan. So first one, you touched on the new comp -- the variable comp structure. Can you just give us some color on what are the key drivers of that? What's actually going to motivate people? What do they actually care about, so we can, I guess, judge that? Beyond sort of variable pay, in this quest to deliver more flow, do you think you're going to have to invest more in capacity than you've already got, so more people, more systems and so forth? You touched on some of it in the shorter term. But I guess what I'm getting to here is, is the 30% operating margin target beyond Q4 of this year, is that actually sustainable if you have to invest a bit more to actually get these flows that we all want. And then finally, I know you're not going to give any specific targets on the flows. You said that a number of times today, but you have said you want to be the best wealth manager in the U.K. I mean, to my mind, the best scaled player in this market is delivering above 5% net organic growth. So is that ultimately where you need to be longer term if you're going to be the best in the U.K.? Jonathan Edward Sorrell: Okay. Thank you. So on the new comp structure, essentially, it's team-based and formula-driven, as I say. There's a percentage of revenues that are paid to the team and their bonus is that percentage of revenues less their bonus, certain expense items, but it's done in a very clean, simple way. And what that does is motivate people to bring business in, and if they retain that for a long period of time, they can do very well out of that. So it's nicely aligned in that respect. And that whole compensation structure, as you would also expect, is subject to conduct requirements and so forth. Second, do we need to invest more in capacity? So that's why the Rathbones Institute to me is so important. We want to give fabulous career paths to people in the business. I think one thing Rathbones has done exceptionally well actually from what I can see is take graduates in -- I think at a scale, it's quite big actually for a business of our size -- and develop their careers over the long term. What I've noticed is you often meet people who, as with that group of cubs but elsewhere in the business, have started at Rathbones and are still here 10 years later. I think that tells you quite a lot about how special the place is. But through that institute, people will have a mechanism where they can say, if I want to go on career path X,Y or Z, I know precisely what I need to do. And my point to your question on capacity is there is a capacity in the industry generally in terms of the availability, the number of financial advisers and so forth. And so we really want to develop our own wherever possible. We think that we can absorb the investment that's required in everything that we just talked about within our existing cost base as we seek opportunities to simplify and automate the business and get productivity gains through AI. We won't be shy in time. If we find a great way to allocate capital in our business, we won't be shy about coming back and explaining that and telling you how we're going to invest that money. But at the moment, in our base case, we think, as I say, that investment is absorbable. And so that takes you on to your question about the margin, which is a perfectly reasonable one. But I'm just very conscious as we are as a team of all the things that go into a margin target. We had something very specific for Q4 of this year, driven by the delivery of the integration benefits that we had spoken about. I think I've known you for a long time, David, and that goes back to Man days. You know that we're going to operate with real discipline, but we're committing to that margin target for Q4 and not beyond. On the net flows, I think you're right to put the aspiration for net flows in that context. There is no time scale, as I said, on hitting that, but I think, as you say, that's a reasonable measure to point out in terms of what success looks like for flows. Unknown Analyst: Two, I'm a bit surprised not to have any numbers even on a 2- to 3-year view because you have levers. You have the excess capital lever. You have the cost lever as well. So I was wondering what made you cautious in a way. That was the first one. And the second, a little bit cheeky. When you arrived, you said that you wanted to be the best wealth manager in the U.K. And I noticed that today, you want to be the best wealth manager in the U.K. by far. I was wondering where that came from. Jonathan Edward Sorrell: So on the no numbers, look, we -- I don't think in a business like this, it makes sense to set an artificial arbitrary target within an even more arbitrary time frame. This is all about consistency of purpose and delivery, delivery, delivery. So what we've done is given you measures where you can see the progress that's being made that should translate into those sustainable flows. So that's a really long way of not answering your question. On the point about the by far, we as a GC have spent several days debating our strategy, debating what our vision should be and what our aspirations should be. And the by far comes from us as a group, which is that we look at where we are in the industry. We're amongst its leaders. We punch, I think, a little bit above our weight actually in terms of our win rate on new business as we look at situations that are in our pipeline. But that's our aspiration, and that's the standard that we want to set for ourselves, and I think that's a good thing. Christiane Holstein: This is Christiane Holstein again from Bank of America. Just 3 questions. So firstly, on timing, I know you haven't given any explicit time frame. But how quickly do you expect to start to see the benefits of the strategy? And at what point do you expect a meaningful improvement in your targets? My second question on costs. So you haven't outlined any additional costs to put this in place, but some of the initiatives do seem like they might need costs. So for example, the institute or restructuring of staff remuneration. So just wondering where those costs are going to be reallocated from. And then thirdly, on culture. So this is obviously quite a big component of your target. And there seems, over the past 6 months, that there's been quite a few changes within Rathbones, whether that's the integration of IW&I or the new leadership team and everything. Just wondering how staff morale is, attrition, yes, how that's going internally. Jonathan Edward Sorrell: Thank you. So on the time frame, I think it would be reasonable to say that you would want to start seeing some level of improvement within a 12-month time frame, but it's not going to be a marked change. And then I think if you don't see a meaningful change over a 3- or 4-year period, there's probably someone else sitting here explaining that to you. So I have accountability for the delivery of that sustainable organic growth. On the cost side, you mentioned 2 things. As I said, as an overall point, we think we can absorb these costs within our existing cost base as we simplify and automate elements of our business. The institute, as I say, is not a big, shiny new building. It is a small team. We're in the process of recruiting a senior leader. There will be a few people around that person. The training platform is digitally enabled. Let's just put the context of the hiring piece, if I can put it like that, alongside the cost of not having a shiny new building. So look, we have 125 financial planners, I think it is today, and as I said, we have 11% penetration by client, 14% by FUMA. You look at the most effective offices and they're operating at a penetration rate of 35%, 40%, something like that. I'm not sure where we can end up over time, but let's just say, for the sake of argument, it's somewhere between the 2. You're going to have some big productivity gains from technology in the intervening period. But let's say we hire 50 or 75 new financial planners at the sort of costs that a new hire would bring, that's totally absorbable in the context of our P&L. Staff remuneration, just to be clear, that the new front office scheme was cost neutral, so the implementation of that was not designed to save or make money. That's cost neutral. The RGU scheme, which we're very excited about, is incremental to the cost base but obviously very aligned with growth. So if we achieve that organic growth, you're all going to give us a much higher PE, and everyone will be happy. On the culture, I would say staff morale, the integration, it's very easy. I used to be -- I'm a reformed investment banker. We used to advise people on deals. It was gloriously simple because we could advise on the deal, sign a contract and then move on with our life. But this integration, of course, is -- has been a colossal effort, a massive effort over a couple of years, and there are really 3 phases to that integration. You have the migration of client assets, which happened just before I arrived. I swanned in and all the hard work was done. You have the integration piece, again, before -- largely before I arrived, which is sad and it's stressful because it means saying goodbye to valued colleagues. And then you have the harmonization is the third part. So if you have 2 AML process, for example, you would tend to move to the higher common denominator. All of that is a huge amount of work. So when the Chairman and I and others thank our colleagues for the amount of work that's gone into this, we really, really mean it. And to your question on morale, I think that was -- became a real grind by the end of last year. And people really needed their Christmas break. And I'm pleased to report people have come back refreshed and energetic, and we're now going at it again. And that's reflected in the attrition. The attrition in the front office is about 2.8%, something like that for the business as a whole, 6.5%. So the attrition even through that period has been good, which is a testament to my predecessor, Paul Stockton's leadership skills and the culture that we have at Rathbones. Stuart Duncan: Stuart Duncan from Peel Hunt. Can I take you back to your happy slide, Jon, and just some of the opportunity of the younger cohorts? How much of a focus is that for you as a business? And is there anything you sort of specifically need to do as an organization to attract more of these younger customers? Jonathan Edward Sorrell: That's it? Stuart Duncan: Just the one question, boring. Yes. Jonathan Edward Sorrell: Yes. So it's a really important point. The younger cohort is really important. So the value in our business model is in this longevity of the client relationship, 25, 30 years, should be longer. And so I mentioned in the presentation that we want to look at -- rather than looking at minimum account sizes, we want to look at the present value of the client relationship that we can bring in, which is all to say, I'd much rather have 10,000 new 30-year-old high-earning potential clients this year than GBP 2 billion of net flows in the abstract, right? And so getting to the younger cohorts of clients is really important. And that's one of the reasons -- another reason why that cubs initiative is really very important because they can go out and relate perhaps a little bit more easily than some people to that generation of clients. But it's not just about that outreach from Jayne's business development team or from people within the IM and financial planning community. It's about the digital marketing piece as well. And with the new branding that we have, I think that has also fundamentally altered the accessibility and the appeal of our brand to a much broader demographic. So that's all to play for and a really exciting feature. And I think about those 3 million people and the fact Simonetta knows where they all are, and that's very exciting. Benjamin Bathurst: Ben Bathurst from RBC again. Two questions this time. Firstly, on market segmentation, you referenced you're operating in targeted segments now, private office, charities to name a couple. I think it's right in saying that you pointed to the opportunity in the mass market. Does that mean that there's a requirement for you to sort of broaden your appeal outside of those areas of strength? Or are you thinking of focusing more on getting more out of those targeted segments as described? And then secondly, on AI, how prescriptive do you intend to be in terms of investment manager usage of AI? is there going to be an edict from the center? And do you intend to sort of monitor this usage to improve productivity? Jonathan Edward Sorrell: Yes. So sorry if I wasn't clear on this market segmentation point. I think the point I was making was that when you look at the segments that we target, private office, charities, intermediaries, ethical investments and so forth, the right to win that I described really matters in those segments. It's not a mass market proposition. That was the point I was making. And just to be clear, we're not looking to go into the mass market. So just to be really clear on that, I'm sorry if I wasn't as I spoke, but those -- the point you made wasn't the one I was trying to make. On AI usage and edict, I don't think edicts work in a business like this, frankly, number one. And number two, I don't think you need an edict. I mean this is something that should stand to reason. And I think what you're trying to do in many parts of the business is create capabilities that people feel genuinely compelled to use. And look, we've all gone through our own cycle of learning how to use AI tools, and I use them much more than I did 12 months ago and 6 months before that. And I think people are on that journey. But certainly, with the introduction of Copilot and 1 or 2 other things that we're using on the financial planning side as well, I think people are really seeing huge benefits from that. And as we all know, the quality of what these things are able to do now is materially better than it was even 6 months ago. So that's certainly my own personal experience of it. So no edict, but it just stands to reason. Benjamin Bathurst: What about [indiscernible] Jonathan Edward Sorrell: My edict to you is use a microphone. Benjamin Bathurst: You just told me you didn't believe in edicts. Jonathan Edward Sorrell: For you, it's fine. Benjamin Bathurst: Yes. Will you be monitoring, if not edicting, monitoring usage of AI? Would you be monitoring it if you're not edicting it? Jonathan Edward Sorrell: Well, there is a measure, which is really important, of the number of hours that we think AI is saving. And so that is something that we're monitoring. It's basically something that comes automatically to us through the platforms that we use. It's not something that we need to gather ourselves, but beyond that, no. Michael Sanderson: Michael Sanderson from Barclays here. Just I'll go with the 2 because that's become fashionable, it would appear, now. The first one is there's obviously been a couple of ownership changes or prospective ownership changes of what would be perceived as peers of yours. And I suppose I'm interested how you think about that in this moment of growth and the opportunities, whether it's hiring, client targeting, et cetera, et cetera. So interested how you're approaching that element. Second piece, I totally understand and think the advice piece is very interesting. I'm just interested about the higher penetrating offices that you mentioned. Is there anything particular about those offices, whether it's the nature of the clients, nature -- sort of relative age, relative wealth that has meant it particularly powerful that may not be so relevant in some of the other offices for any reason? Jonathan Edward Sorrell: Yes. Look, on the first point, we're in an industry that has, I think, 42 private equity-backed players of some description, and so naturally, that space will consolidate over time. There are going to be more sellers than buyers, I would have thought, over time. And that, as I mentioned earlier, 1 day, could be a really good opportunity for us. In the context of the 2 or 3 deals that might have happened more recently, that may throw up some opportunities for clients who aren't necessarily fans of the situation or certain people. And as you'd expect, we're pretty focused on those sorts of opportunities. With respect to higher penetration, it's a fantastic question because it took us a little while to figure out what the answer was. And I think it's actually really simple, which is in Manchester and Newcastle, what they've just done a fabulous job with is just working together from the start. So it's just embedded in the way they go about their business, the way they think. I've mentioned it as a reflex. It's just the obvious thing to do. Now one thing we have done with the new incentive scheme is cleared up the debate that used to exist about how economics might be split between the 2 functions. So I'm not sure that was the sole problem, but if economics ever got in the way, that's being cleared up once and for all through the implementation of the new scheme. So I think that helps. I think also you just get anecdotal evidence. There was a very good one, the -- from a few months ago, I think it was Camilla, where we'd actually lost a pitch for a piece of business, and we've just gone in with an investment management proposition. And I think Camilla probably raised an eyebrow and said how about the whole financial planning thing. And we went back and we won, and it was a GBP 5 million piece of business. And I think those sort of moments, you have pennies dropping, but it's a matter of developing that reflex. And I think if we get that reflex in the organization, that's a big opportunity. Does that answer your question? Any more online? Unknown Attendee: Yes, I've got one online for you. Question from Paul Bryant from Equity Development. Jonathan, I understand the banking services you provide clients. But in your review of the business over the last few years -- over the last few months, have you thought about whether you need to keep your banking license in-house? Jonathan Edward Sorrell: Yes. So a bit of an old chestnut, this one, as I understand it. I'm not the first person to raise this question. But look, when you look at the return on capital that we get through our banking license, it's in line with our requirements. And then importantly, it's obviously a great glue in the client relationships. It's not hugely widespread in its use around the business, but it is really useful glue in the relationship. Third, I would just add that we're one to relinquish the banking license that comes with quite heavy operational requirements on the client money side as well. So all to say that it has been a focus. I believe it's been something that's come up for debate many, many times over the years, but we're comfortable with where we are right now. And there may indeed be, on the margin, some opportunities to deploy some more balance sheet to our clients but just on the margins. And that's it. Thank you very much for coming in today, as I say, heroically on this Friday. Please do stay around and have a coffee with some of my colleagues. I wouldn't get too close. We've got quite a nasty bug circulating since the middle of January, so keep the distance. Maybe open a window. But thank you very much to everyone. Thank you.
Peter Dilnot: Hello, everyone, and welcome to Melrose's Results for 2025. We appreciate you joining us to reflect on a transformational year and to talk through the exciting path we have for the future. We have lots of value to unlock, especially given strong demand and what we've done over the last few years to reposition our business. The key message today is that we're executing our plan. We've got a clear strategy to create shareholder value, and we're getting on with it. We delivered a strong performance in 2025. There's no doubt that we're operating in a complex and dynamic global environment and against this backdrop, our operating profit was up, driven particularly by Engines and Defense. We also delivered our cash target with positive free cash flow of GBP 125 million, and this represents a really important inflection point in our journey. Good commercial and operational progress continue to be made, and we also completed our multiyear transformation program. So this all gives us some very positive growth momentum, which is underpinned by the market where there's strong demand across both civil and defense. Indeed, in all parts of our business, demand is very definitely on our side. We have established positions on all the world's leading aircraft and their engines, and this positions us squarely to benefit from strong future production ramp-up and the Aftermarket, most notably in Engines. Beyond this, the differentiated GKN technologies that we've prioritized are being actively sought out by leading OEMs. So we're nicely on track. We've got a clear path to delivering growth, margin expansion and increasing cash. This will deliver ongoing shareholder returns. And on that note, we're pleased to announce today a new share buyback program, reflecting our confidence in hitting the 2029 targets. So I'll just say a few words on these 2 themes covered here, starting with 2025 performance. In 2025, we delivered financially, commercially and operationally. Sales were up 8%, margins were up 240 basis points. And as I've said already, cash came through positively. On the commercial side, we continue to make good progress, particularly in our target areas, such as winning contracts in our aftermarket blade repair business and the rapidly emerging military uncrewed market. Now from an operational perspective, we delivered further improvements in safety, quality and productivity. And I'm going to talk more about this in the second half of the presentation because clearly, operational execution is important here as we ramp up. Turning now to our positive growth momentum. At the highest level, there are 2 aspects to this, the strong market and the plan we're executing to unlock our potential. On the market side, our unique Tier 1 portfolio is embedded on all the world's leading aircraft. So the demand for our products and our technologies is at record levels. We have civil order backlogs going into the 2030s, structural aftermarket demand growth and the turbulent world is driving an unprecedented increase in defense spending. And then there's the next generation of aircraft where our technology is being actively sought out for future developments. Turning to the execution side. The last few years have been about transformation. We've focused GKN Aerospace on where we can win with design-led positions. We've exited noncore or cash negative businesses, and we've repriced lots of work where we needed to get sustainable returns. In parallel, we've rationalized our footprint from 50 to around 30 sites. Back in 2023, we were operating at 12% margin, and we were cash flow negative. We've just announced results today with a 600 basis points improvement in margin to 18%, and the cash is nicely positive. So quite some changes, and we now have a great foundation for further gains. Going forward, it's a different type of growth because the restructuring is complete. Given the expected sales increase, we're going to see operating leverage from the ramp-ups, further productivity improvements from our improved cost base as well as the gains coming through from our operational and commercial actions. So we are well positioned, and we know the levers to pull. This gives us confidence in delivering 24% plus operating margin and GBP 600 million of free cash flow by 2029. We'll return to this in the latter part of the presentation. But for now, let me hand over to Matthew to talk in more detail about 2025 performance. Matthew Gregory: Thanks, Peter, and good morning. It's a pleasure to talk about the business' strong performance in 2025 with profit and free cash flow in line with our expectations. Group revenue grew 8% on a like-for-like basis, led again by the Engines division. Group operating profit took another significant stride forward, growing 23% to GBP 647 million due to the revenue growth and the further impact of our business improvement programs. Margins also continued to grow, up 240 basis points to 18% and EPS grew significantly, up 25% to 32.1p per share. These are a strong set of results with continued profit growth and a major milestone achieved, delivering positive free cash flow in line with our commitments. Turning to Slide 7, breaking this down by division. Both divisions delivered revenue growth, and our performance continues to be driven by the ongoing strong performance of the Engines business, up 15%. You'll notice that we've changed the name of our Structures division to Airframes, and Peter is going to explain more about that later on. So Airframes saw growth of 3% with the strong performance of Defense constrained as expected by the ongoing supply chain challenges being experienced in the sector, which is holding back civil OEM production rates. Margins continue to grow in each division due to the buoyant engines aftermarket as well as the benefit of our business improvement programs. And both divisions are making progress towards our 2029 targets. So digging deeper into each division. Turning to Engines on Slide 8. Revenue growth was robust at 15% up with both OE and aftermarket contributing almost equally. OE grew 16%, and this was driven by higher GEnx and GTF volumes and the higher spare engines ratio as well as good growth in our non-RSP commercial contracts, including our military ducts business. It was good to see the strong growth for OE in H2. While some of this resulted from the unwind of H1's tariff impact, the underlying OE growth in the second half was still well into the teens. This reflects the volume ramp and bodes well for future OE growth. Turning to aftermarket. This revenue was up 14% in the year. RSP revenue performed well with growth of 20%, and that revenue included GBP 324 million of variable consideration, which grew by 22%, meaning the core RSP portfolio grew at 19%. As expected, due to a strong comparator, our Swedish military business declined 7%. But it was good to see, though, a return to growth in the second half, up 7%. We continue to deepen our relationship with the Swedish FMV and have been awarded a contract to develop an uncrewed aerial vehicle demonstrator within 18 months. In addition, this business signed an agreement with the FMV to explore the propulsion requirements for future fighter systems, and we also signed an agreement to supply several mission-critical components for the Ariane 6 launch vehicle. After a challenging first half caused by tariff disruption, our aftermarket Repair business returned to growth of 24% in the second half. Overall, the business grew 12% in the year. We continue to make good commercial progress in repair, winning a contract with Rolls-Royce to be the sole external supplier of fan blade repairs on 3 of their engines and with Boeing for C-17 fan blades. We also entered into a 5-year contract extension with Pratt & Whitney for critical fan blade repairs. Operating profit for the division grew by 27% to GBP 520 million and margins at 31.9% continue to rise. The strong margin reflects the growth in the highly profitable aftermarket business as well as continuing improvements in productivity and quality in this division. So a very strong performance from the Engines division despite tariff and supply chain challenges with further growth and improvement to come. Turning to Airframes on Slide 9. This division delivered 3% like-for-like revenue growth. This was driven by defense, which was up 15%, where increased build rates and improved commercial terms read through in the year. At the half year, we confirmed we have met our target of 85% of the portfolio being sustainably priced, and this rose to over 90% by the year-end. Defense continues to develop commercial opportunities, signing an agreement with Anduril Industries to collaborate on next-generation uncrewed aerial vehicle solutions. The partnership with Anduril, which includes advanced composite aerostructures, wiring, a ground-based demonstrator and advanced flight testing will initially target the U.K. government's upcoming Land Autonomous Collaborative Platform and the British Army's Project, NYX. Elsewhere, the Defense business has secured 2 follow-on contracts for C-130J and Typhoon transparencies. On the civil side of the business, revenue was marginally lower, down 2% as a result of modest growth in our key narrow-body and wide-body platforms, which is still impacted by continued supply chain issues affecting OEM production rates, offset by declines in business jets and other platforms. Commercially, we signed an agreement with Archer to expand engagement on the Midnight eVTOL platform, which has been selected as the official air taxi provider for the 2028 Los Angeles Olympic Games. Margins for Airframes continue to improve despite the slower ramp-up with the impact of pricing, business improvement, restructuring and the sale of lower-margin businesses all dropping through. Margin progress, however, was constrained by lower civil volumes as well as lower productivity at one of our manufacturing sites in the Netherlands. Our plan to resolve this issue during 2026 is already well underway. Operating profit grew by 10% to GBP 156 million, and margins grew from 7.2% to 8%. So despite the volume and supply chain challenges, the Airframe division continued to deliver profit and margin growth with more improvement to come when the ramp-up impacts our volumes. So let's now talk about the numbers below operating profit on Slide 10. We put the details of adjustments to operating profit in the appendix. From that, you will see that now we've finished our restructuring programs, the size of that adjustment is much reduced. Net financing costs are GBP 132 million, which largely reflects the interest on bank loans with an average cost of 5.3%. The ETR for the year ended lower than expectations at 20.4%, and this was due to the recognition of certain tax assets in Malaysia and Sweden. A combination of all of the above and a steadily reducing share count shows EPS of 32.1p, growth of 25%. And as a result of the strong performance in the year, a final dividend of 4.8p per share is proposed, increasing the full year dividend to a total of 7.2p per share, up 20% from last year, and this is in line with our capital allocation policy. So now let me turn to our cash performance for 2025 on Slide 11. We were pleased that we hit our cash target, delivering positive free cash flow in excess of GBP 100 million. Free cash flow post interest and tax was GBP 125 million with GBP 200 million more than last year. Moving into a little more detail, we have split out the movement in variable consideration, continuing to give transparency as to how this affects our results. And at GBP 324 million, this was very much in line with guidance. As expected, trade working capital performance in the second half of the year was strong, reflecting the seasonality of the business and the sector, augmented by certain customer settlements, which we expect to continue. For those of you that want it, in the appendices, you will be able to see our factoring position, which ended the year at GBP 396 million. This reflects growth in the existing programs and the ramp-up in the last quarter. Just to confirm, no new factoring programs have been or will be entered into. With respect to the powder metal issue, we saw GBP 68 million cash cost coming through in 2025, in line with our guidance. CapEx was GBP 94 million and represents 0.9x owned asset depreciation and amortization. This reflects continued investment in strategic growth initiatives, but also the capital expenditure on major restructuring projects was completed last year. And I'm pleased to confirm that our restructuring programs have now concluded. From a cash perspective, the cost was GBP 31 million, which is below our guide. And to confirm, there will be no significant cash cost in 2026. Moving on to the share buyback program. During 2025, we returned GBP 173 million to shareholders from the GBP 250 million program announced in 2024. In the first quarter of 2026, there is a further GBP 60 million to be spent to complete this program. Net debt ended the year at GBP 1.4 billion and leverage at 1.8x net debt to EBITDA. This was in line with our expectations and our capital allocation policy leverage target range of 1.5 to 2x net debt to EBITDA. So having talked about 2025, let me now give you our guidance for 2026. All of this guidance is given at $1.37 to the pound. First, the P&L on Slide 12. Given the expected OE volume ramp-up and the strength of aftermarket in the sector, we expect to see continued robust revenue growth in 2026. This is despite the persistent supply chain challenges that are affecting the whole aerospace industry. We are guiding to revenue from GBP 3.750 billion to GBP 3.950 billion, which at the midpoint represents like-for-like growth of around 10%. And this revenue growth continues to be weighted towards Engines. Given the strength of our aftermarket business and our margin improvement plans, we're guiding to operating profit between GBP 700 million and GBP 750 million. At the midpoint, this represents profit growth of around 16% and the midpoint margin is around 19%. At a divisional level, we expect Engines to maintain strong growth rates in double-digit territory with growth weighted to the aftermarket. Operating profit guidance is GBP 565 million to GBP 595 million, and this includes variable consideration of around GBP 360 million at the midpoint, and we expect margins to be around 33%. The Airframes division is expected to show high single-digit revenue growth on a like-for-like basis. This reflects an element of civil ramp-up alongside continued growth in defense. Operating profit is guided at GBP 170 million to GBP 190 million. We expect to hit 9% margins this year through growth and improving Airframes operating performance. PLC costs are expected to be GBP 35 million this year, including around GBP 3 million of noncash LTIP cost. Now I had hoped not to mention tariffs today, but events in the last few days has the potential to cause further disruptions. We continue to caveat our guidance for any new tariffs, and we wait to see how the recent announcements are actually processed in the U.S. customs system. I can confirm, though, as a result of the swift and firm action on this subject during Q2, tariffs have not had a material impact on our results in 2025. Moving down the P&L for 2026. I'd expect absolute net interest costs to increase, reflecting the continuation of the share buyback and the fact that the cash generation will continue to be back-end loaded. For 2026, the interest rate for gross bank debt is expected to be around 5.3%. Guidance for ETR is 21% to 22%, and this is still very much weighted towards the Swedish tax rate, but will depend on the precise balance of profits during the year. So from a P&L perspective, we're guiding to continued strong growth in the business with top line and operating profit moving forward significantly. Turning to our cash guidance for 2026. We introduced formal cash guidance in 2025 with our commitment to deliver GBP 100 million plus of free cash flow. We now intend to guide a range for cash flow like our sector peers do. The overall guidance for free cash flow post interest and tax is GBP 150 million to GBP 200 million, which is GBP 175 million at the midpoint with the range reflecting the size of the group. Let me work through some specific guidance to help your modeling. I've just given P&L guidance as well as the guide for noncash variable consideration. Whilst we are still experiencing supply chain disruption, we would hope that this starts to turn a corner by the end of the year. As such, we do not anticipate significant growth in trade working capital, and we do expect further customer settlements in the year. Resolution of the powder metal issue is expected to have around a GBP 50 million impact in 2026, and we remain confident that the total cost of Melrose of resolving this issue will be within the GBP 200 million advised by Pratt & Whitney at the outset. We expect CapEx for 2026 to be around 1.2x owned asset depreciation and amortization. This is higher than prior years and reflects our commitment to strategic growth initiatives. I'm going to give you more color on this on the next slide. Whilst historically, we have left you to estimate cash interest, we are now guiding to the 2026 interest cash cost being around GBP 130 million. Cash tax costs will increase in absolute terms for 2026, but will still be low compared to the P&L, around 4% of the adjusted profit before tax. When you combine all of this with the fact that there will be no material restructuring cash costs in 2026, we expect leverage to continue to be below 2x EBITDA within our capital allocation policy. So to repeat, free cash flow after interest and tax is guided at GBP 150 million to GBP 200 million. And this cash flow will continue to be heavily weighted to the second half of the year, in line with historic Melrose and sector seasonality. My final slide, Slide 14, reiterates our capital allocation policy. We are now a business that generates positive free cash flow, which will increase each year to our 2029 target of GBP 600 million free cash flow. We will look to allocate that capital in a disciplined manner in 3 ways: Firstly, we continue to invest in the business, both for maintenance projects as well as investing in business expansion opportunities. In 2025, we invested in our additive fabrication expansion in Sweden and Norway. We also completed our new repair facility in California and set up a new wiring facility in Mexico. In 2026, investment will grow to 1.2x owned asset depreciation and amortization and will include further investment in additive fabrication and expanded building in one of our U.S. facilities as well as investment in capacity for the OE ramp-up in Engines. From a balance sheet perspective, we intend to be efficient by maintaining leverage of between 1.5x to 2x net debt to EBITDA with a view to attaining investment-grade metrics over time. Provided the first 2 pillars of our policy are satisfied, we will then look to return cash to shareholders. And we'll do this in 2 ways. Firstly, we will continue to grow our annual ordinary dividend, and you've seen that we've announced a final dividend that represents 20% annual growth. We will then make share buybacks considering free cash flow delivery and leverage targets. It's worth noting that once the current GBP 250 million program is completed, Melrose will have returned more than GBP 1 billion to shareholders in dividends and buybacks over the last 3 years. Taking all of this into account, today, we announced a new GBP 175 million 12-month share buyback program, which will commence once the existing program completes at the end of March. As previously announced, our share buybacks will be considered annually to tie into our year-end reporting process. We believe that our capital allocation policy reflects our intention to invest in the business, a disciplined approach to leverage and make sensible returns to shareholders. So to conclude, the business has performed well in 2025. And despite tariff disruption and supply chain challenges, we expect to deliver robust growth and margin improvement in 2026. We have passed the inflection point for free cash flow, and we will build on that good momentum as we progress towards our 2029 targets. And with that, I'll hand back to Peter. Peter Dilnot: Thanks, Matthew. As you say, let's now talk further about our growth outlook. To start with, I think it's worth just recapping what Melrose is today. We have a unique Tier 1 portfolio that we've repositioned to deliver value for the future. It starts with 2 end markets, civil and defense. and serving these markets, we have an Airframes business and an Engines business, both of which play in the OE side and the Aftermarket. So there's a number of dimensions to our business. In Civil Engines, we have an RSP portfolio that gives us an entitlement on 70% of global flying hours, plus an increasing network of parts, repairs facilities. In Civil Airframes, we have design positions on all the world's major aircraft. We serve Airbus, Boeing and increasingly COMAC, and we have a good position on leading business jets. In Defense Engines, we partner with all engine OEMs as the leader in military ducts as well as technology on the Pratt & Whitney F135 engine and supporting the Gripen fleet. In defense airframes, we have embedded positions on all the major rotary and fixed wing platforms, particularly the F-35, and we're also on key European platforms. So it's fair to say we have real breadth in aerospace and defense, and our positions are typically sole source. And against that backdrop, we all know there is strong demand growth, so I won't dwell on this slide. But I do want to reinforce on the civil side, we've got record backlogs going out into the 2030s. And in the last year, we've seen a big increase in wide-body orders, which is good news for us given our positions on the A350, the Boeing 787, GEnx and XWB. There's also increasing shop visits as flying hours go up. On the Defense side, it's clear that there's a generational uplift in NATO spending going forward, both in Europe and also likely in the U.S. And then there's this new opportunity with uncrewed aerial vehicles and our development teams are hard at work here. So suffice to say, demand is strong, reassuring and underpins our business. Now I'll turn to each of our businesses in turn, starting with our Engines business, which is unusual because it serves all of the OEMs. At its heart is our RSP business. And here, we provide load-bearing components on all the world's leading engines where such partnerships exist. What this means is every time one of those engines is shipped, then we have a lifetime entitlement to the aftermarket revenue and profit. And of course, that generates significant cash for decades to come. Our government partnerships business is where, among other things, we support the Gripen fighter jet. We're the provider of aftermarket support globally. And of course, this is certainly a growing fleet as in the last year, again, we've seen more nations buying more planes. Then we have our repair business, where we have invested and built new highly automated sites to meet demand in growth areas such as blades, blisks and disks. It's a purely aftermarket business serving growing global market needs. And then to round out the portfolio, the commercial contract side, where we have long-term agreements on all the engines that are out there even when we don't have an RSP. And this effectively gives us some balance as it's an OE business giving us exposure to all production ramp-ups. Now the final thing I'd say on Engines is we shouldn't lose sight of our breakthrough additive fabrication technology, which is in demand from all the OEMs now and for the future generation. And I'll talk more about that shortly. Engines is an exceptional business. So now on to our design-led airframes business. This is a business that has global reach and also local presence. As Matthew mentioned earlier, you'll notice that we've used the word airframes here. Historically, we've called this our structures business. But as this slide shows, our technologies and products span beyond structures, including our leading wiring business and also transparencies. On the composite side, we have leadership in terms of design and advanced manufacturing methods. We make major components for aircraft like the Boeing 787, the A350, F-35 and Black Hawk, and we have deep capability through our global design technology centers. This is an OE business facing significant ramp-up with existing and next-generation aircraft. Turning to EWIS now. We're one of the top 3 global players in wiring. Here, we supply defense aircraft such as the F-35 and a broad fleet of civil aircraft. We have proprietary design capability and a global footprint covering North America, Europe, India and China. And again, this is in demand with more electrification and higher voltage requirements going forward. In transparencies, we're effectively the sole high-volume provider of canopies for the F-35 fleet. We make Boeing's passenger cabin windows and have breakthrough technologies to bring forward for the next generation. And finally, metallics, which is a core and differentiated part of the business that's at the heart of the world's high-volume aircraft such as the A320. This is a broad portfolio, and it's important to reiterate that what differentiates us is the combination of design and cutting-edge production capabilities. So across Engines and Airframes, we have established positions on all the world's leading civil and defense aircraft, and this really is the cornerstone of our strategy. Many of you have seen this slide before, and no apologies for sharing it again as it's central to the value Melrose will generate in the future. There are 3 waves to our strategy. First, 90% of the value that we will unlock is delivering growth in the existing platforms from production ramp-ups, RSPs, engine repairs and of course, in everything we do, operational excellence. Second, beyond the existing platforms, we've identified target areas very selectively where our breakthrough proprietary technology is most in demand from our customers and our customers' customers. Most notably, this is in additive fabrication, military uncrewed aircraft and advanced air mobility. And thirdly, actively participating in the next generation of aircraft. This includes being the only engines player to have a position on both current next-generation single-aisle engines programs as well as working on the sixth-generation fighters such as GCAP. So I'll now talk about our progress in each of these 3 waves, starting with existing platforms. Aircraft production has clearly been constrained by the supply chain over the last few years. And in some areas, this is still the case, but the ramp is coming given the demand backdrop. There's ongoing and live discussions about what rate will come through and when, but production is going to increase over time. On civil airframes, we have a weighting towards wide-body and Airbus. And on the Engine side, each new aircraft needs 2 engines, and we're involved in all of them. On the defense production ramp-up, this is driven by increased spending, and this is evident from material increases in recent orders that will need to be built with existing fleets, for example, F-35s, Gripens and Typhoons. NATO's ambition is for these aircraft and new UAVs to be built swiftly given the threat environment. We, of course, need to make sure we can deliver the ramp. And to start with, our operations are now positioned around technology centers of excellence. We're investing in capacity, automation, robotics and AI. And we've also got an industrial plan, which we're working on to scale up for defense over the longer term. So the supply chain is gradually easing, production is ramping up, and we're positioned ready to serve our customers. Our next area of growth from existing platforms is the Engines Aftermarket. Let's start with our RSP portfolio. Now it's important to recognize that we do have legacy engine RSPs generating cash, particularly on programs such as the CFM56 and the V2500. These engines are flying longer, and that benefits us in the short to medium term. But as those engines do retire, they're replaced by new engines, in particular, the GTF, XWB and GEnx, where we have an RSP program share, which is much greater than the legacy engines. So as those legacy engines get replaced by newer engines, we're set to benefit on 2 counts. Firstly, there are more engines flying. And secondly, our program share on those engines is greater. So we have a significant compounding impact with more returns from the Engines Aftermarket. Now I should also touch on the importance of the GTF here. Right now, the 2 GTF variants are the only engines out of our portfolio of 19 RSPs that are not cash generative. There are still net cash outflows associated with the GTF. These are the PMI inspection program, which is set to complete in 2027 and further investments in the final stages of engine development. The promising GTF advantage is now starting to come into service, and we expect the overall program to become cash positive for GKN in 2028. This will have a major impact for us, which further compounds the RSP growth story and its embedded value. Beyond RSPs, we have our engine repair capability, where we're building on our legacy position with 2 new state-of-the-art facilities in California and in Malaysia. Our repair service is very much in demand as older engines are flying longer and of course, more sophisticated repairs are needed as newer engines take to the skies often in harsher environments. Now all of this needs to be delivered in a way that serves our customers well and generates financial returns. And to do this, we're increasingly embedding an operational excellence approach, which we call the 3 brilliant basics. This is centered on lean principles and a continuous improvement model that involves 3 levers: daily management systems, problem solving and breakthroughs. But what does this really mean? If you cut it all the way through, we have key metrics for operational performance, which are cascaded from the shop floor, so literally from Tier 1 team leaders level, up through every management layer to the boardroom. Each level has measures that it controls, and we strive for improved performance every day. It all adds up. Now we've been at this for the last couple of years. It's delivered some benefits to date, but there is much more to come, especially now our restructuring is complete. The core measures are SQDIP or safety, quality, delivery, inventory and productivity. In 2025, we saw further gains in safety, which was 32% better, and I'm proud to report this results in 80% less accidents over the last 3 years. Quality and productivity also both improved in 2025 as this chart shows. At the same time, we've had some challenges along the way. These include the operational issues at one of our Dutch sites, which Matthew mentioned earlier. And here, we're well underway with addressing the root causes, including with our supply chain partners. Our arrears are also not where we want them to be on all programs. With inventory, we've increased our levels. And frankly, we've had to trap some cash in doing that to protect customer delivery. As for the future, our aspirational target is to have zero harm, no escapes and no overdues. We'll also reduce our inventory carefully over time, and we will drive further productivity gains, including from operating leverage as the ramp comes. We know how this needs to be done. It requires granular and focused work throughout our global enterprise, but we have the toolkit and the operational excellence approach to deliver our potential. Beyond delivering growth from existing platforms, we're expanding in targeted new opportunities where we're advantaged and we have a right to win. I'll highlight 2 such ongoing opportunities today. First, additive fabrication. This is a breakthrough technology, which has the potential to replace structural forgings and castings, which continue to constrain engine production rates today. This technology is not a new idea. It's in full serial production on the fan case mount ring on the GTF. We're not just using established additive manufacturing methods, but instead using our proprietary software and robotics to guide lasers that deposit titanium and alloys into near final form structural components. We have an encouraging pipeline of parts from OEMs and are working to certify them to expand this technology's reach, impact and value. Beyond the certification, we're industrializing the production process so that we can manufacture at high volume and low cost. This technology is in demand, not just because it's a smart, efficient and sustainable way to make parts, but because it can support Engine OEMs in a concentrated and challenging supply environment. The second opportunity here is military uncrewed vehicles. This is a new market and an evolving one due to the nature of conflict and ongoing global tensions. We're in demand here, particularly as NATO nations typically want to have their own sovereign capabilities. The development cycles are shorter here, too, and we're working across a range of countries to build new platforms at pace. We've already mentioned a couple of projects in the public domain with the FMV in Sweden and our partnership with Anduril in the U.K. We plan to tell you more about these breakthrough opportunities through investor teach-ins later this year. And finally, I want to mention we think it's important to deliver our growth sustainably, and we're taking focused steps to ensure that this is the case. From an environmental perspective, we beat our 2025 targets comfortably, and we're just issuing new ones for 2030. These are aligned with protecting the environment and doing our part in terms of how we're operating the business. From a social perspective, I've already touched on our ongoing safety improvements, and we're also investing in terms of diversity and our people engagement. And in governance, we've transitioned our business and our Board to reflect our aerospace and defense business model with a combination of new NEDs and a new chair with deep global A&D experience. So as we're growing the business, we're aiming to do so in the right way and with the right team. As I wrap up here, I want to reiterate our confidence in delivering the 2029 targets. Just to recap on these, top line growth to GBP 5 billion of revenue, 600 basis points of margin expansion, GBP 1.2 billion of operating profit and GBP 600 million of free cash flow. Now just like other parts of our business, we have momentum on free cash. We've gone from the performance in 2024, which was negative to a GBP 200 million swing this year. We'll see incremental improvements in 2026 with the guide Matthew has already taken you through. And this will then step up further to GBP 600 million in 2029. Now let's be clear, we know what the levers are, and we also know what the trajectory is here. Essentially, there are 3 core drivers for this step-up. The first is the growth in EBITDA from the ramp-up that I have just described. The demand is there. We're well positioned to generate more profit, which converts efficiently to cash. The second is increasing cash returns from our extensive RSP portfolio. And again, we have a locked-in position here, and this is all about the engines going into their shop visits and us capturing our entitlement as they do so. And then finally, and importantly, the GTF, which is set to turn cash positive for us. This is a function of both the completion of the PMI inspection program in 2027 and then the development costs reducing and being more than offset by cash-generative shop visits from the flying GTF fleet in 2028. So simply put, our assumptions are market-based forecast, combining together with our execution to deliver the GBP 600 million of free cash flow. So with that, I'll close and return to the message I started with. We know what we need to do, and we're executing our plan. We've delivered strongly in 2025, and we've got great momentum for the future. This gives us confidence about delivering our exciting potential in the years ahead. And with that, I'll open to questions. Operator: [Operator Instructions] Our first question today comes from Mark Davies Jones from Stifel. Mark Jones: I had a few sort of unrelated ones, if I may. Can I just start with GTF? We've had a lot of talk about that. But can you make any comments on the dispute between Airbus and Pratt at the moment? Is there any risk of financial penalties or additional cost that impacts your free cash flow assumptions around that program? That would be the first one. Should we start on that? Peter Dilnot: Yes. Yes, clearly, a very public discussion between Airbus and Pratt & Whitney, and these are both important customers for us. Obviously, Airbus facing strong demand, record backlogs want to ramp up as much as possible and therefore, demand on the engine side. And then at the same time, you've got Pratt who are dealing with a situation which is not only to support the OE side, but also to support shop visits and make sure that the flying fleet is in good shape. And there's a balance there, which Pratt is the overall owner of that program is best placed to judge. And clearly, that debate is going on between the OE and the aftermarket side. We're ready to support our customers on both. And of course, our guidance is very much in line with that. Relative to the sort of cost of any issues, I think relative to the GTF, we're just reiterating the whole PMI costs, and those are very much in line with expectations. And specifically on any dispute between Airbus and Pratt, we think an agreement will be reached. So nothing more to say on that one for now. Mark Jones: Okay. And then could you give us a bit more detail about what's going on in the facility in the Netherlands and the sort of scale of any impact there in terms of its impact on profitability? And then the final one was just on the defense outlook, particularly the Swedish business. Obviously, a transitional year in '25. Would you expect that to be back in good growth in '26? Peter Dilnot: Yes. I mean, specifically on the Netherlands side, this is a productivity issue that relates to actually moving production from one facility to another and also some supply chain issues. And those supply chain issues we're dealing with, but they have had also an impact in terms of our first pass yield. In terms of the impact of that, it's a mid- low single digits, but we believe it's important to call these things out. And critically, the key thing here is that we have taken the steps to rectify this as we continue to deliver productivity. But amongst the global business, we've moved things around. Most things have actually gone very well, and our restructuring program has read through very nicely, in fact, ahead of expectations. This is just one particular issue that we've had to deal with. So contained, we know what we need to do, but we're also straightforward about it being an issue. I think you then asked about defense. I think you... Mark Jones: Swedish defense. Peter Dilnot: Swedish defense. I think what I'd just step back and talk about defense is I just have on the presentation, which overall is a rising tide, if you will, for existing fleets. And the Swedish opportunity is actually in the new and emerging market of uncrewed aerial vehicles, which is driven, I think, firstly, by the nature of war fighting, but also the need and the desire for NATO sovereign countries to have their own capability. And in doing that, bringing those things together, uncrewed vehicles can be developed quickly, locally, and we're very much at the sophisticated end of this. And with the FMV, which is one that's the only project really that's in the public domain. We're very busy actually more broadly than the FMV, but with them specifically. It's a demonstrated program funded by the Swedish government to have an uncrewed vehicle which would deploy alongside their forces. And I think what's really exciting about this for us is that it builds on our legacy position in terms of composites and our airframes business, coupled with our clear leadership in propulsion with our Engines business. So the combination of those 2 things meeting a need for customers. And we expect this market to continue to grow and to develop. We're very well placed to do that. And again, there's other areas that you've seen and we've talked about, including here in the U.K. and also some activity in the U.S. Matthew Gregory: And just to add to that, Mark, I think you saw in the presentation, we're pleased to see that return to growth in the second half. So that bodes well for 2026. Mark Jones: Our next question comes from Sam Burgess with Goldman Sachs. Samuel Burgess: First one, just on the structures again and some of those headwinds you had this year. If you could just help with the level of confidence that you have on that bouncing back and becoming a tailwind to growth maybe through '26? Or is that something that more materializes in '27? Any visibility there? And even by customer or program would be very helpful. And then secondly, I saw your trade working capital performance in H2 looked reasonably strong. You referred to certain customer settlements in the report. If you could just give some visibility there and if that's one-off or recurring, that would be helpful. Peter Dilnot: Thanks, Sam. I'll take the first one and Matthew can pick up on the working capital point. Look, on structures, we're repositioned this business now so that it's focused in the right areas with the right operating footprint. And the trajectory that we've got, I think it's worth just stepping back for a moment because we set out with some targets in our 2023 capital markets to get significant margin expansion. Indeed, we've overdelivered against the areas of our repricing activity and also in terms of business improvement. So we're up 500 basis points over the last couple of years. So it's clearly positive trajectory. The one area, and you're right to put it out, and indeed, it's reflected in both our results and our guide is that the volume isn't quite coming through as we would have hoped back then. Indeed, it's about 10% lower than we expected because of the supply chain issues. This is clearly well known and flagged by our customers, including Airbus. So that's where we are today. I think the important thing reading forward is our confidence about the margins because we're up at 8% margins despite much, much lower volume. So as that volume comes in, and it will come in, I mean, the backlog is there, we will see that drop through. So we're as confident as ever that we've got the right positions, and we're well placed to deliver that ramp-up. The pace of that ramp-up is clearly guided by our customers themselves, but we'll see continued margin progression this year, and that's consistent with the guide that we've given. But beyond that, we absolutely stand by our pathway to get this business to low teens by 2029. So actually, underneath the volume, the other things that we've done, we've actually outperformed to drive this margin expansion. So when the volume comes in and it will over time, that will read through nicely in terms of our structures business. Matthew Gregory: Yes. And to talk about the trade working capital, yes, absolutely, this business will always have a very strong working capital performance in the second half. That's just the seasonality of the business. And we talked about this at the half year that we expected that performance to be stronger, and that's how it's turned out. In terms of customer settlements, yes, we said that there were some customer settlements coming through in 2025. We can't really talk about the details of those. It really reflects sort of conversations and negotiations we have with our customers. We did say earlier in the year that they would continue and look specifically as part of our guide for trade working capital for 2026, we're expecting a sort of similar level to come through in the working capital and the cash flow. Operator: Our next question comes from Ian Douglas-Pennant with UBS. Ian Douglas-Pennant: Yes, Ian Douglas-Pennant at UBS. So the first is on your receivable factoring, please. That was a lot higher than I was expecting in 2025, that GBP 58 million. What is the pound number that we should expect in 2026? What is contained within your GBP 150 million to GBP 200 million for receivable factoring? That's my first question. The second question is on the buyback. Can you help us understand the -- why are you doing GBP 175 million buyback? You generated GBP 66 million of free cash flow before factoring in 2025. You've got interest costs of GBP 130 million. Wouldn't that cash be better used to be paying down debt? Matthew Gregory: Yes. Well, let me take both of those, Peter. So firstly, on the factoring, look, let me step back a little bit and sort of talk about factoring. We've been very transparent about the factoring that we do, and these have been in place for many years, historic with the business and is very -- relates to very specific programs. We've also been very clear that we're not going to enter into any new programs on the factoring side, and that's exactly what I've confirmed. So the reality is the growth in the factoring relates specifically to the growth in the programs that we have factoring on. And look, I think I want to be clear that factoring is not driving our cash flow. I know that's how some people like to put this stuff into their models. What's driving the cash flow is the manufacturer product, the shipment of the product, the invoicing of the product. And then we get paid immediately for that through our factoring programs. So it's really the operational performance that's driving the cash flow, not the factoring. So that's really what I'd say about the factoring. When you look at to next year, we're not going to guide specifically on the programs. We're not going to get into that level of detail. We are suggesting that a proxy for the factoring would be the growth in our revenue, which we're saying is going to be around 10%. Now what we can't do is say -- sorry, specifically when those programs grow, when the product gets shipped when the invoices happen. And one of the reasons why the factoring at 17% growth is slightly higher than the revenue growth, although it's close to the engines growth is because our engines programs have performed really well, and they performed really well in the last quarter. I mean for me, the good thing to get from this is that we are driving growth in the business, growth in EBITDA, and we're getting paid for that very quickly. In terms of the share buyback, look, it's a good question, and I think lots of people have lots of different views on this. Our -- we have a very clear capital allocation policy that says we are going to grow our cash flow, the sources of cash. We're going to invest in the business, and you can see that our CapEx is growing in 2026 on our maintenance and our growth initiatives. And then we're going to maintain leverage between 1.5 to 2x. And if those 2 things are in place, then we will look to return cash to shareholders in a sensible and disciplined way. We have a dividend and then we have the share buyback that we looked at. I would suggest to you, though, we did deliver GBP 125 million of cash. you can cut it in many different ways. We delivered GBP 125 million of cash -- free cash flow as we said we would. And I think we take that into account. We take the market into account. We take the fact that we've got our aftermarket coming towards us into account when we consider our share buyback decision. And that's where we've got to. We're very pleased to announce GBP 175 million 12-month share buyback program. And we're comfortable with that because it meets our capital allocation policy. Peter Dilnot: I think the other thing I might add just to that, Matthew, is I think the share buyback is also a sign of confidence. Our free cash flow did GBP 125 million this year, GBP 600 million. We're continuing to guide to that and very confident that we can grow into that. So our cash flow is increasing. And as a sign of that confidence, we have the ability to demonstrate that aligned with our capital allocation policy with a continued buyback. So it's the policy and then overlaying that is continued confidence that we know what we're doing. We've got the right demand, the right positions, and we will generate cash that we have the balance sheet to be able to -- in the position to be able to share some of that with our shareholders. Operator: The next question comes from Aymeric Poulain from Kepler Cheuvreux. Aymeric Poulain: To follow up on this question on factoring. I mean, for the GBP 600 million '29 target, should we assume a continued growth up to that point for factoring? And given the current exchange rate, why didn't you revise the exchange rate used for the 2029 free cash flow guidance? That would be my main question. Matthew Gregory: So I'll take those 2 first, and then maybe you can add to that if we need to. So yes, look, Aymeric, on the factoring side, look, we're very clear. We have these historic programs in line with the industry. They will grow in line with the programs. And therefore, everything else being equal, and we don't know what's going to -- what exactly is going to be happening in '29, you would expect the factoring -- the balance sheet factoring position to increase. Again, I come back to this point, driven by activity, deliveries and shipments to customers. In terms of the 2029 targets, you've asked a very specific question about foreign exchange. Look, Peter has been very clear that we've set out our 2029 targets with a very clear set of assumptions and basis beneath that. We are seeing ahead of us the civil ramp-up. We're seeing ahead of us the growth in the aftermarket as it pertains to us and more broadly. We're seeing the GTF turning to cash positive in 2028, and we're seeing the PMI issue being resolved, and we're seeing the end of restructuring of that. Those key assumptions are what drives our GBP 600 million target. Now yes, you've highlighted there is an element of headwinds as it relates to foreign exchange. I don't know what the foreign exchange rate can be in 2029. But there are also tailwinds related to that. We talked about defense. We talked about continuing growth of the aftermarket. So from our perspective, we are committed to delivering that GBP 600 million. we are committed that all the assumptions behind that are still absolutely valid and if not sort of slightly better. And that's why we keep on driving forward with GBP 600 million. Do you add anything to that, Peter? Peter Dilnot: No, I think -- I mean, the factoring has come up twice. I'd just make another point from an operational perspective, which is we're not entering any more programs. As we said, this is really about the timing of receivables. It's just a question of whether or not we get paid directly from the customer or accelerated via those programs, and it's a well-established piece. So I think actually guiding to what the factoring balance might be in 2029, frankly, I think, is more to do with the timing of shipments in that year. It's not a source of cash to us. It's just a function of how we operate and run the business. And I think that's really important in terms of factoring. It's not a source of cash. It's about the timing of the receivables. And then specifically on 2021, I think you said it very well. The underlying drivers are there. FX will move backwards and forwards, but there were also -- that being a headwind, there are also some tailwinds that we're not factoring in at this stage or putting in, should I say, it's probably better use the word, is -- and that is around potential upside around defense and also a stronger engine aftermarket. So rather than move that target every time we do a set of results or half year results, GBP 600 million is a target, you make your own assumptions around FX. We're doing what we need to do to deliver that number, and we'll hit it. Operator: Our next question comes from Ben Heelan with Bank of America. Benjamin Heelan: So the first question, Peter, back to the slide that you had talking about the growth drivers on cash through to 2029. Is there any kind of ranges that you can give us? What are the biggest drivers? How can we put a little bit more color around some of the building blocks and your guys confidence to that GBP 600 million? Is the big swing factor the EBITDA growth? Is it GTF inflection? Could you just give us a little bit more color around that? Second question, the range that you've given for free cash flow, the EUR 150 million to EUR 200 million. Could you just give us a little bit of color what means that you would end at the bottom of that range towards the top of that range? That would be great. Third question, I haven't talked about M&A. Is M&A on the agenda? Is that something that you're thinking about? I remember back at one of the Capital Markets Day, you talked a lot about repair and the potential to grow that business. Is that something that is on the agenda? Peter Dilnot: Great. Should we do the middle one first around -- because it's closer in, in 2026. Yes, absolutely. So look... Matthew Gregory: We, like everyone in our sector, provide a range of cash flow. And what I can be very clear about is our range is absolutely focused around the midpoint, which is GBP 175 million. So when you ask question, well, what can make it GBP 150 million, what can make it GBP 200 million? Well, the vast majority of that range is really around trading, okay? We give a range around our trading profitability, and that obviously largely would flow through to the cash flow. Also, we're a GBP 4 billion multinational aerospace company, aerospace and defense company that's very, very weighted towards the last quarter of the year, and you see that across the sector. So is there a possibility that a payment we're expecting of GBP 20 million arrives on the 3rd of January instead of the 29th of January? Yes. So that's why we put a range in. But what I can be absolutely clear is we are absolutely confident we'll deliver the GBP 175 million. There is potential for upside on that. And I think if you look at our track record, we have delivered our cash flow projections for the last 3, 4 years. So I think it's really about the midpoint 175 billion. Everybody will guide a bit of a range. We're not signaling anything negative around that. That's what everyone will do, but we're absolutely confident we can hit 175 million. Peter Dilnot: Good. So let's stay on the free cash, Ben. is in terms of the drivers, and as you say and as I described, there are really 3 core things here. The first is the growth in EBITDA from the production ramp-up. And I think we can see that just steadily increasing, and that will go together with the rates. It's not just, of course, linked to the civil side, but also defense as well. So that's going to be a relatively progressive straightforward line as we go forward linked. But of course, as that volume comes in, we get a very nice drop-through from that as well as we've already talked. And then the aftermarket returns, of course, what's happening here is as we've got new engines being shipped into and come into, should I say, the aftermarket phase, our share on those engines is greater. And so we're getting a greater proportion of cash returns from the RSPs. And as we know, the aftermarket has been particularly strong. But again, that's contributing through. And as we've seen with the legacy engines continuing to contribute as well. So that's going to be, again, steady progression. The one that is slightly sort of less linear, if you will, is the one around the GTF. And that is the 2 parts to that. One is the powder metallurgy issue, which we've guided to again for this year. It looks like actually Pratt are actually saying or RTX are saying it may drop away completely in 2027. We'll wait and see what they guide and we'll follow that. But that's certainly contained. So it's dropping away this year potentially to nothing, and it will certainly drop to nothing by '27. And then the swing factor is the GTF going from being cash absorbing in terms of the development costs that we're as a program team putting into that around the GTF advantage. That actually is then overtaken by the cash-generative shop visits. And that inflection point is in 2028. And that's important, of course, because it goes from being a cash drag, if you will, to a source of cash. And so what we're going to see here, and I think the first 2, you can actually model. The second one, obviously, is relatively commercially sensitive around the GTF. But what you can see is it's not a massive hockey stick. We've got continued cash flow progression over the next few years. And then as the GTF kicks in, it will then move us up to that GBP 600 million mark. So hopefully, that gives you some color as to the drivers. But again, it's going to be progressive from here. And everything that we see sitting here today, more confident than ever around the underlying drivers from this from a market, from an operational and from a delivery perspective. So that's it on the air. Do you want to add anything? Matthew Gregory: Yes. Can I just to be very clear about the powder metal situation, just to talk the absolute numbers. So when we talked before, we said that for '25, it will cost us GBP 70 million, '26, it would cost us GBP 70 million. And then '27, we said it would cost about GBP 25 million, and that would get us to the end of the program. What we're seeing now is that we're guiding for 2026 we're guiding at GBP 50 million. So it's GBP 20 million lower than we originally thought, and that's driven by the partners telling us that's what's going to happen. As Peter said, you'll all read the wording in the RTX and the MTU sort of announcements that they think it will be completed by the end of this year. The reality is for us because we're more of a junior partner, we get sort of the impact of that sort of later than they do. So we're still holding on to the potentially GBP 25 million in 2027. So we're not asking you to change your models for 2027. But it was very positive that by reducing in 2026, it seems to be sort of giving confidence that it's progressing very well. Peter Dilnot: Good. And then Ben, your last question which is around M&A. And I think what hopefully comes across clearly is that we've got a huge amount of value to unlock here in terms of profitable growth and cash generation from an organic basis. We've repositioned the business both on the airframe side and on the engine side. And we're now well placed to fulfill that potential and to deliver value organically. That said, anything that is consistent with that around those areas of opportunity and particularly around our technology, actually, I would say, if there's an opportunity to tuck in things that will accelerate what we are doing at a relatively small scale. And actually, it's below the radar, but we have done a software acquisition. We did a couple of years ago to support additive fabrication. We're advancing what we're doing in additive fabrication with advances in sort of forgings and castings, which is not particularly large scale, but they just reinforce our position here. That's within the range of what we do. We will do those things if it makes sense. But overall, this is an organic growth story. And I think the other point I would say is in terms of the shape of the portfolio now, we have, over the last few years, exited businesses that are noncore. We've got a business that's well placed and that we see strong demand growth for. And so from a disposal point of view, we're done on that basis as well. So the core of this is just delivering the promise. And of course, as we do that, the value will come back to our shareholders. Operator: The next question comes from Joe Orchard with Rothschild & Co. Redburn. Joseph Orchard: A couple, if I may. On airframes, airframe structures, the midpoint of your FY '26 guidance implies a margin of 8.6%, which I think is basically the landing spot that consensus was expecting for this year. Are you still confident that 2029 is the right time frame where you can get to your low teens margin target for that division? And then secondly, a couple of questions on the moving parts for free cash flow. On CapEx, there's a step down in H2 versus H1. Please, could you comment on why that was and whether that's a seasonal trend you expect to continue? And then also the GBP 28 million generated from the sale and leaseback, are there any other facilities in your footprint where you plan on doing this? Or was that very much a unique set of circumstances? Peter Dilnot: Joe, I'll get the first one and hand over to Matthew on the cash. Look, I think we sort of touched on this a bit already in terms of where we are on airframes, which is we've seen very good margin progression from where we were, which is a function of some volume growth and also our business improvement actions reading through. And so we have clearly continued to increase margins. If you look at the volume that we were expecting and you would apply that effectively to the performance that we've got, if you put the volume back in at a reasonable drop-through, we would actually be well ahead of our plans. So volume continues to be the constraint here. What we can see going forward is that production ramp-up will come. You've seen Airbus guide to the fact that's gone out a little bit in terms of their rate 75, for example, but those targets are absolutely out there, and we're growing into those. And as that volume comes through, we're very confident that the margins will as well. So volume is the missing ingredient if you will, from the story at the moment. But there's no question about demand. It's about satiating that. But again, we feel very confident and comfortable with our guidance of low teens for structures over time. And I'll just add into there because we do talk about Structures, Airframe, we do talk very much focused on the civil side, but we have, of course, got the defense business, which is growing well and outperforming as well. So that, again, underpins, if you will, the fact that this is a quality business that will continue to expand its margins and throw off cash. So I think hopefully that covers the sort of volume and confidence around the airframe side. Do you want to do the cash flow? Matthew Gregory: Yes I cover the cash flow. Yes. So on the CapEx side, there's nothing particular around the seasonality there. It's really in the first half, we just had some sort of carryover from the restructuring that was absolutely finalizing, particularly around the repair facility in California. But no, we are absolutely sort of pushing ahead with all the CapEx we need to. And as you can see, for '26, we've signaled that we're putting more into that. On the sale and leaseback, yes, I mean, they're all kind of unique circumstances when we consider them. So this particular one in Norway, it was a strange one where we actually owned half of it and leased half of it, and then we did the restructuring. So we're not using half of it as well. So we came together with the owner, and we were able to get sort of a beneficial lease to do that because we've got a reduced footprint. there probably are only a couple of other sites that we might consider that kind of thing. Look, again, we're trying to -- we're saying we're disciplined with capital, and we will be disciplined. There are a couple of other sites that have been affected by restructuring that we might look to either sell or sale and leaseback or do something with. But it's about sort of utilizing the asset base as best as possible. Operator: The next question comes from Marie-Ange Riggio with Morgan Stanley. Marie-Ange Riggio: I have a couple of questions on free cash flow and some on additive fabrication. The first one is more a clarification on GTF payments linked to Ben's question. Can you just help me to understand why we should not assume EUR 45 million impact in '27 instead of '25, even if you confirm the total cost of EUR 200 million. So that's the first one. The second one is, can you help us to understand how much engines will contribute to your free cash flow versus airframe, if not for '26 if you can give us a bit of color for '25. And lastly, on free cash flow, is there any reason to believe that with the new CFO coming in May and probably your softer progress than expected in '26 that your '29 guidance can be under review or is it at risk? I will start with free cash flow, and I will go to additive Fabrication after. Matthew Gregory: Sure. So on the GTF, as I said before, we are sort of led by the main partners on that. What we're saying is it will be within GBP 200 million, and we're trying sort of not to be very specific in writing. As I said, both MTU and RTX have said that the compensation payments will finish during 2026 and have told us that our contribution in '26 will be GBP 50 million, which is what we're guiding to. We -- because of the timing of that, we still think there will be some cost in 2027 to us. And therefore, the GBP 25 million is still valid. Now what that means is that overall, the cost will be about GBP 180 million from what we know now. And so that's the way that we're guiding you specifically. I'm afraid we don't give cash flow split between engines and airframes. So all we do say is that airframes is -- once the restructuring finishes, becomes a very sort of cash-generative business, normal cash generation and the non-VC elements of engines are also cash generative. But sorry, we don't give that split. I'm not going to comment on the new CFO. Maybe I don't know if you want to say... Peter Dilnot: I think Mario, let me answer your question in 2 way. So firstly, I'm going to take a bit of an issue with you saying our progress is not in line with expectations on cash. I would disagree with you there. We've delivered against our original target of GBP 100 million, which is a different FX rate. What we've delivered today is GBP 125 million. So I think that is meeting, I think, expectations or perhaps even beating them. But we then also are guiding towards the range, which is absolutely in line with -- so I think we're on track with our free cash flow projections from here. So that's the first thing. And then as it relates to 2029, let me be clear, the underlying drivers there in terms of all the things we just talked about, the production ramp-up, the earnings coming through, the RSPs, the stronger expected aftermarket and the GTF, all of those drivers are very much in play and working through as we'd expect. So we're nicely on track on those. We do have some FX headwinds, and you can plug that as you will. But we also have, frankly, some tailwinds, which is the defense market is stronger than we expected when we put out those targets last year. And also, we have the engines aftermarket, which is quite strong as well. So we're not going to move the target backwards and forwards on FX and these things each time we stand up and do results. What I can tell you is that we're absolutely confident about that GBP 600 million. Ross is going to be joining us very shortly. He's close to the business already and we'll get closer. And so I don't expect any great movements. We're here with a consistent plan, and it's on track. Marie-Ange Riggio: Perfect. Very clear. Just on additive fabrication, you announced last year that it will generate EUR 15 million of operating profit in 2029. But I can't no longer see it in your presentation. So sorry if I missed it. But my first question is, do you still confirm this contribution? And if yes, do you already have a contract signed giving you confidence on this? And what's the level of margin that we can expect from additive fabrication? Peter Dilnot: Marie, I'm pleased to talk about this because it's an important part of what we're doing. The first thing is, yes, we're absolutely on track with the GBP 50 million. It is part of the overall path to 2029. And do we have contracts in place? Yes. Are we working with a range of customers on building out the pipeline and the opportunities? Yes, we're talking to all the OEMs across this. We've obviously got some work we're doing with Pratt & Whitney specifically, and I won't go through them. It wouldn't be appropriate to go through, but we're talking to all the OEMs. And the reason for this, let me be clear, is what is gating production at the moment across the industry at large. One of the key things is forgings and castings. And this is a breakthrough technology, which can replace some of those structural forgings and castings by using our proprietary robotics and lasers to basically print parts in a proprietary way to effectively offset some of the need for forgings and castings. It won't replace the whole 20 billion-plus market, but absolutely, it's in demand. It's a good way of making products, but the most important thing about it is that it takes some pressure off a very constrained supply environment. It's in demand. Our challenge and our opportunity is to make sure we commercialize it, we bring it in and it's absolutely on track. There is more momentum about additive fabrication than there has been at any stage, partly because as we see, the market continues to be constrained in terms of engine production. So we commit to numbers. And one of the things we will do is we're going to do an investor teach-in together with this and our defense technology play during the course of 2026. Marie-Ange Riggio: And just on the level of margins, if I may. Peter Dilnot: I guess I understand why you're asking about that. I'm not going to give you a margin as you'd expect, because that would be inappropriate relative to our customers. What I can tell you it is not a cost-plus model. We're pricing this as an alternative to other methods. And therefore, you'd expect the margins to be reasonably healthy, but I'm not going to give the margins. We deliberately didn't. The other part is, I would say, some of it is straight drop-through because in some areas, what we're doing is instead of buying forgings and castings, what we're doing is we're actually making the material ourselves. So if we save the cost there, it's difficult to sort of call what the margin impact is. It's a GBP 50 million contribution to operating profit in 2029. Operator: There are no further questions at this time. And so I'll hand back to Peter for closing remarks. Peter Dilnot: Thanks very much for joining us this morning, and we look forward to talking to many of you in the days ahead. Thanks.
Operator: Good day, and thank you for standing by. Welcome to Yancoal 2025 Financial Results. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Brendan Fitzpatrick, Investor Relations Manager. Please go ahead. Brendan Fitzpatrick: Thank you, Maggie, and thank you to everyone for joining us on this briefing for Yancoal's 2025 financial results. My name is Brendan Fitzpatrick, the Investor Relations Manager. To present today's briefing, we have the following members from Yancoal's executive leadership team: Sharif Burra, Chief Executive Officer; Kevin Su, Chief Financial Officer; Laura Zhang, Company Secretary, Chief Legal, Compliance, Corporate Affairs Officer; Frank Fulham, Chief Sustainability, Technology, Innovation and Development Officer; David Bennett, EGM Operations; Mark Salem, EGM, Marketing and Logistics; Mike Wells, EGM Finance; Mark Jacobs, EGM, Environment and External Affairs; and Sebastian de Koning, EGM, Audit and Risk. After the executive team completes the review, we will move to a question-and-answer session. The commentary provided today is based on the 2025 financial results and associated announcements published to the Australian Securities Exchange and the Stock Exchange of Hong Kong yesterday, the 25th of February. Slides 2 and 3 contain notices and disclaimers relevant to today's presentation and the forward-looking statements it contains. Please make yourself familiar with the content of these 2 slides. Throughout the presentation, we will use Australian dollars unless otherwise stated. Sharif Burra will provide the introductory remarks for Yancoal's 2025 results. Sharif Burra, I hand over to you. Thank you. Sharif Burra: Thank you, Brendan, and welcome to everyone on the call. During 2025, we delivered a great operational performance. ROM coal production was 67 million tonnes and our attributable saleable coal production was 38.6 million tonnes. This was a production record for Yancoal and in the upper quartile of our production guidance. Our cash operating costs were $92 per tonne, a reduction of $1 per tonne from the first half. The 2025 costs were also $1 per tonne lower than our 2024 costs. Lowering our cost was a great outcome in the current industry setting, and I applaud all the people working at our mines for the operational performance they've delivered. Our overall realized price for the year was $146 per tonne, giving an implied cash operating margin of $39 per tonne after government royalties. We achieved revenue of almost $6 billion and an operating EBITDA of over $1.4 billion at a 24% margin. As we've noted previously, delivering this margin during a period of weak coal prices is a testament to the quality of our assets and our ability to operate them effectively. Our profit after tax was $440 million, or $0.33 per share. In accordance with our dividend policy, the Board has elected to distribute $161 million to shareholders as a $0.122 per share fully franked final dividend. Together with the $0.062 per share interim dividend, the total 2025 dividend represents a 55% of net profit after tax payout ratio. Company retains a strong balance sheet, with $2.1 billion of cash and no external debt at the 31st of December. Slide 5 shows our safety performance. Keeping our workforce safe is always our first priority. The TRIFR statistic improved over the year and remains below the industry average, but we aim to reduce it further. Safe mines are productive mines. Our push towards a strong operational outcome this year is underpinned by our commitment to improving safety performance through targeted intervention activities. As part of the 2025 financial results, we've also published our AASB S2 climate-related disclosures. Preparation of the disclosures included identification and assessment of climate-related risks and opportunities. We intend to develop a Climate Transition Plan in 2026 to strengthen our climate resilience and support the Yancoal P4 Sustainability Strategy. Initiatives already underway include the Sustainability Digital Data Platform, which was launched in Q3 of 2025. This will improve the capture, quality and governance of sustainability data and reporting. Our P4 Report provides an annual update on sustainability activities, including progress in delivering the company's P4 Sustainability Strategy. The 2025 P4 Report will be published in April 2026. I'll now hand over to David Bennett to take you through our operational performance. David Bennett: Thank you, Sharif. Slide 7 summarizes the operational drivers behind our full year performance. As Sharif mentioned, we delivered record performance, near the top end of our production guidance. The second half improvement in cash operating costs took us just below the midpoint of the guidance range for the year. ROM coal and saleable coal production figures were 5% to 7% higher than 2024. Attributable sales were up 1% after we optimized our sales volumes and stock position. Our lower realized prices reflect conditions in the international coal markets. Mark Salem will provide more detailed comment on our sales in the coal market shortly. Turning to Slide 8. We see that ROM coal on a 100% basis was 67 million tonnes. This was up 7% from 2024 and was the best performance in the past 5 years. All of our operations other than Ashton, increased ROM production compared to 2024. This was a notable achievement as we encountered above-average rainfall at our New South Wales mines, but our past investment in water storage capacity meant less disruption to production. Attributable saleable coal production was up 5% compared to 2024. We have consistently delivered toward the upper end of our asset and equipment capabilities throughout the year. The quarterly production profile was much more consistent in 2025, which allowed us to pursue optimization and efficiency gains. The aim is for a similar approach in 2026. That said, the first quarter is likely to have the lowest production figure, so we will look to increase production in the subsequent quarters. During the year, we set 2 separate world records with our Liebherr 9800 excavators. At Moolarben, we set a world record for total material movement in 2025 with 17.6 million bcms of material movement. And at MTW, a second excavator, set a world record for total material movement in a month of 1.75 million bcm. These performances demonstrate Yancoal's capability to operate at the highest industry levels. R9800 excavators are also in use at HVO, and sharing the knowledge and best practices between mines improves performance across all of our operations. Slide 11 shows our cash operating costs. As Sharif said, our cash operating costs were $92 per tonne in 2025. We continue to work extremely hard to keep our costs in check to offset the impacts of wet weather delays and inflationary pressures. This operating cost is not just an improvement over last year. It is the best performance in the last 4 years. Increased production, mine plan optimization as well as equipment reliability and utilization, all contributed to combating cost inflation elements and the impacts of higher demurrage throughout the year. We see our ability in keeping costs flat over the past few years as a great outcome relative to the sector, and this leads to the next slide. Turning to Slide 12, we demonstrate why keeping cash operating costs low is crucial. Our implied operating cash margin in 2025 was $39 per tonne. This chart shows the expansion and contraction of margins we have experienced over the past 5 years. The margin, while lower than in recent years, remains positive. Combined with our scale of production, this drives the financial performance, which Mike Wells will cover shortly. Slide 13 has data we have used in the past. The chart displays our 3 largest mines in the context of other Australian thermal coal mines. The total cash costs are shown on an energy adjusted basis to counter the influence of coal quality on the operating margin. We updated the slide to show the same data set 12 months apart with December 2025 compared against December 2024. We can see the collective move by the industry to curb costs. The key takeaway remains that large-scale, low-cost mines, such as ours, remain viable when many other mines struggle through coal price cycles. This is why we focus on maintaining our assets and operating them as well as we do. I'll now hand over to Mark Salem to cover the coal markets. Mark Salem: Thank you, David. Starting with the product mix on Slide 14. 84% of our sales were thermal coal, with the balance being lower-grade metallurgical coal. This product split varies from period to period, depending on which coal seams are in production at each mine and how we can maximize the market opportunities. You may recall back on Slide 7, we had 38.6 million tonnes of attributable production, but only 38.1 million tonnes of attributable sales, a variance of 0.5 million tonnes. This was a result of weather-related issues causing some delays to vessel arrivals and cargo assembly, resulting in some sales slipping into January. In addition, if you look back at 2024, we had 800,000 tonnes more sales than production, optimizing our sales at a time when the market was in backwardation and therefore, reducing our stocks. The ability to rebuild stock will allow ongoing optimization of our 2026 position. Turning to Slide 15. We show our market split in contrast to both sales, revenue and sales volume, for 2025 against 2024. We optimized the revenue contribution of our various coal products to specific markets. China is a significant offtake partner, both on a volume and revenue basis. Customers in China tend to take a higher proportion of our API5 5,500 net as received calorific value quality coal. However, revenue and volumes decreased in 2025 as China utilized more domestic supply. Our Japanese customers purchased a significant portion of our higher calorific thermal coal, our lowe volatile PCI and semi-soft coking coals. This market, therefore, is very important to revenue contribution. Revenue to Japan increased mostly due to an increased proportion of our metallurgical coal sales. In Australian dollar terms, our overall realized coal price was $146 per tonne for the year, down 17% from 2024. Strong supply and benign demand conditions persisted in the international thermal coal markets through most of 2025. Geopolitical events, port disruptions at Newcastle, economic initiatives in China and seasonal trading patterns, all contributed to short-term price movements during the year, none of which having an effect on any long-term structural trends. Cuts to supply from Indonesia, less 10% and Colombia, less 18% were constructive, but there were also lower imports by China, down 18% and Taiwan down 12%. We price our thermal coal against the API5 and globalCOAL Newcastle Indices. Our realized price in U.S. dollar terms sits between these indices as shown in the chart. In Australian dollar terms, our realized thermal coal price was $136 per tonne, down 15% from 2024. Australian metallurgical coal exports fell 9% in 2025 due to the mine and port disruptions and weather impacts. This contributed to a 7% decrease in global metallurgical coal exports. However, demand for metallurgical coal lackluster as steel exports from China displaced production from other countries. Metallurgical coal indices that Yancoal sells against finished at similar levels to the start of the year. In Australian dollar terms, our realized met coal price was $203 per tonne, for the year, down 2026 from 2024 -- 26% from 2024. There are various groups providing forecast for international thermal coal markets. A common theme we see in recent forecasts is the ongoing revision of when coal demand will peak and at what level. Delays to projected closure dates for existing coal-fired power generation, combined with new facilities coming online, drive the evolving demand profile. Since we last included this slide, the second half of 2025 forecast revisions have lifted the profile once again. On Slide 19, we look at projections for seaborne supply over the next 10 years. Approval and financing challenges for new mines compound natural reserve depletion in the coming years. There is a growing appreciation that coal still has a meaningful role in global energy mix, and there is the potential for a supply shortfall in coming years. Since we last provided this profile, the projection for supply beyond 2030 has been bolstered by whether it will satisfy demand, is still debatable. In the seaborne metallurgical coal market, demand for mature regions like Europe and Northern Asian are likely to decline over the next 15 years. However, this could be outpaced by the growing demand from emerging economies leading to an increase in total demand. In the seaborne metallurgical coal market, some supply growth is required over the next 15 years to meet demand. Unless the additional supply entering the market has a total cash profile lower than existing supply, which seems unlikely. This situation likely necessitates higher met coal prices in the forward years. I will now hand over to Mike Wells to cover our financial performance. Michael Wells: Thank you, Mark. Starting with the key numbers on Slide 22. Whilst we delivered record production, the lower average realized coal price drove a 13% decrease in our full year revenue to $5.95 billion. This price impact naturally flows down to our operating EBITDA of $1.44 billion. Similarly, looking at the cash flow statement, the 41% reduction in operating cash inflows reflects the 44% decrease in operating EBITDA. $769 million was distributed to shareholders during the year, and capital spend was $750 million. Overall, we retained a strong financial position with $2.1 billion of cash at 31 December and minimal lease liabilities. The 2 charts on Slide 23 demonstrate the close correlation between average realized price, revenue, operating EBITDA and the operating EBITDA margin. We extended these charts back to 2018 to show the impacts of the cyclical coal price. Looking at Slide 24, the profit after tax and operating cash flow profiles tend to replicate the revenue and operating EBITDA profiles, but can also be subject to accounting adjustments, one-off items or timing differences. 2023 was one such example where a one-off tax payment was made related to our 2022 earnings as the company moved into a taxpaying position. I will now hand over to Kevin Su to cover the financial position and dividend. Ning Su: Thank you, Mike. Looking at Slide 25, I'd like to remind people that in the 3 years to early 2023, we repaid loans of more than USD 3 billion. This debt repayment transformed the capital structure of the company. As a result of the debt reduction, our financial position is far more secure than it was the last time we faced a cyclical low in coal prices just 6 years ago in 2020. Turning to Slide 26. We look at how well Yancoal has rewarded its shareholders during the past 7 years. We have a strong financial position as noted at the start of the call. The directors have allocated $161 million to pay a fully franked final dividend of $0.122 per share. Together with the $82 million allocated to the interim dividend, the total 2025 dividend is $243 million, or just over $0.18 per share. This total dividend represents 55% of reported profit after tax for 2025. Including the 2025 financial dividends, the company will have distributed $2.5 billion of unfranked and $2.8 billion of franked dividends since 2018, a total of over $5.3 billion, or around $4 per share. Slide 27 has our operational guidance for 2026. We're looking to carry forward our operational momentum. The increased attributable saleable production guidance range is 36.5 million to 40.5 million tonnes. Our guidance range for cash operating cost per tonnes is $90 to $98 per tonne as we allow for some cost inflation. Our capital expenditure guidance is $750 million to $900 million. As we have said in the past, continued reinvestment is required to ensure our large-scale mines remain productive, low-cost mines. We continue to balance production volumes, product quality, efficiency metrics, cash operating cost and capital expenditure to deliver the best possible outcome for shareholders. This year was no different, and our executive team and the people at the site are focused on delivering again in 2026. I'll now hand back to Brendan to coordinate the Q&A session. Brendan Fitzpatrick: Thank you, Kevin, Sharif, David, Mark and Mike. As usual, we have included appendices and additional information for reference at the end of the presentation pack. We will now take questions from the phone lines and written questions submitted via the webcast. Let's start with questions from the phones. Maggie, could you please start the process for questions on the phone line? Operator: Thank you, Brendan. [Operator Instructions] First question comes from Wayne Fung from CMBI. Kin Wing Fung: This is Wayne Fung with CMBI. So my first question is about the output. So how would you expect the production cadence this year? Would that be more front-end or back-end loaded? And my second question is on the cost side. So we're likely to see an inflationary environment given the raw material cost hike, which could possibly hit both OpEx and CapEx. And any measures to ease the pressure? And my final question is on pricing. How would you expect the coal price in Q1 and implementation of the production cut policy in Indonesia? Brendan Fitzpatrick: Thank you, Wayne. Appreciate a couple of good topics to touch on at the start of the call. For the production profile, I know we've had a differentiated performance across quarters in the past. Sharif, could you provide some comments on the production profile for 2026? Sharif Burra: Yes. Thanks, Brendan. Look, our intention is to carry the strong momentum from 2025 into 2026. We have -- we have had a good start to 2026 with regards to weather in the Hunter Valley. And we intend on maintaining some of the record productivity levels, particularly out of our open-cut earthmoving fleet. David, with regards to cadence, you might want to add any further comments throughout the year. David Bennett: Yes. Thanks, Sharif. Just further to the production, as we talked about in the update a little while ago, we expect quarter 1 to be a little lower on the coal production side and then more of an even flow of coal throughout quarters 2, 3 and 4. However, on the other side, in our open-cut mines in quarter 1, we need to move a lot of overburden and unlock the coal so that it's there for -- to produce and sell that product down the supply line. So expect a lower -- slightly lower quarter 1 for coal production but an increase in overburden volumes in quarter 1 at the same time. Thank you. Brendan Fitzpatrick: Thanks, David, Sharif. The second part of the question from Wayne was cost inflation and the impact on both OpEx and CapEx. There may well be a connection back there to the production profile and the unit costs, but what can we say about the inflation effects? And I note that we did allow for a slight cost inflation when we set our unit cost guidance this year. Michael Wells: Yes. Thanks, Brendan. It's Mike. Maybe if I take that. Yes, as you stated, we have increased the guidance range by $1 at the upper and lower end this year to reflect the fact that we are expecting some cost inflationary pressures to come through. As we've demonstrated in the last 4 years, we have been successful in being able to offset inflationary increases through both production increases and productivity initiatives. So we will continue to target those in 2026, but there are inevitably some inflationary cost headwinds that will -- or are likely to flow into our results for the year. Sharif Burra: And I think, Mike, those comments extend through to capital as well. Brendan Fitzpatrick: Thanks, Mike, Sharif. And then the final part of the question was coal price markets. Coal price, the outlook for markets and the potential impact for reported actions in Indonesia. Perhaps Mark Salem, could we turn to you for a comment on the coal markets? Mark Salem: Sure, sure. Look, prior to Chinese New Year and a couple of weeks prior to Chinese New Year, the Indonesians made some -- several different comments about production cuts or allocation of domestic production to domestic utilization. And we did see the market react. The market is very reactive to comments like that. And we -- under normal circumstances, we would see a substantial cut of Indonesian exports in the marketplace. And so the market did react. But none of those comments or rumors have been verified yet or have been made policy within Indonesia. They were made by different ministers. And we haven't seen any concrete movements except for the movement of preserving an increase of 5%, going from 25% to 30% of production for domestic use. So we did see the market react. But since then and during Chinese New Year, when things are relatively quiet in the market, we have seen the market soften a little bit. And so we really just need to wait and see whether any of those policies come through officially as well as whether we'll see a reaction from the Chinese market, which we understand still has very high stocks at the moment. So moving forward, I think we're still expecting the market to be relatively flat. We saw the GCNewc come back down to around $114 this morning, and the API5 is still sitting around that $84 price. So everything is coming back to normal levels that they were prior to the announcements. Brendan Fitzpatrick: Thanks, Mark. Wayne, have we satisfied your questions? Kin Wing Fung: I have no further questions. Operator: Next, we have Peter Wang from CICC. Unknown Analyst: So I have 3 questions. On the foreign exchange loss, which was primarily driven by holding U.S. dollar as the Australian dollar appreciated, how do you see this FX effect and potential for similar losses going forward? And also just a follow-up question on production cost and CapEx. So of the increase in cost guidance, how much would you attribute to the inflation versus some other factors? And the CapEx, are we supposed to expect the sustaining CapEx to remain around the similar levels in the future years? That's all my questions. Brendan Fitzpatrick: Thanks, Peter. Let's start with the first question, the FX loss on the U.S. dollar holding. I'll turn to Kevin first for an initial comment. Ning Su: Thanks, Peter. As you know, Australian dollar is a very volatile currency. It's moved up and down quite a sharply. And then the rapid appreciation of Aussie dollar rate, yes, in 2025 and also in 2026 in the past 2 months, what we have observed, the Aussie dollar appreciated pretty sharply. As a result, we will see the U.S. dollar working capital unfortunately suffered the foreign exchange loss. As of today, what we can see the expectation of Aussie dollar and the U.S. dollar with the 2 Central Bank policy is completely different. As a result, we potentially see an elevated Australian dollar rate for 2026. But once again, I want to just remind investors, the nature of Australian dollars is very volatile. We have seen... [Technical Difficulty] Operator: Next question comes from Paul Young from Goldman Sachs. Paul Young: First question is on the 6,000 kilocal market. We're at sort of peak demand, I guess, in Northern Hemisphere at the moment and the traditional market. So just wondering if you can add any comment around inventory levels across Japan, Korea, Taiwan and any forward look on just how demand is at the moment and demand into 2Q? Michael Wells: [Technical Difficulty] that will start to roll off in the coming years given we have been going through a substantial fleet replacement cycle. Brendan Fitzpatrick: Okay. I'm just checking with the moderator that we've still got audio connection. Maggie, can you... Operator: Brendan, yes. Paul, sorry about that. Could you please repeat your question, Paul? Paul Young: The first question is just on the thermal market. I know you just covered off the uncertainties around Indonesian export quotas, et cetera. But just I'm curious around your thoughts on the 6,000 kilocal market at the moment. We're sort of peak demand in Northern Hemisphere in theory at the moment. But any color you can provide on what demand you're seeing into 2Q for 6,000 kilocal higher quality coal into traditional markets such as Japan, Korea and Taiwan? Brendan Fitzpatrick: Okay. Mark, sounds like a question for you. What are we looking at in the North Asian market and the GCNewc-style product? Mark Salem: Yes, sure. Thanks, Brendan. Thanks, Paul. Look, I can honestly say, Paul, that the market for your 6,000 product is very stable. And we're seeing very, very solid, consistent demand. I think it's safe to say that in some of North Asia, there has been a shift in the way they think about coal. And we've definitely had a lot of interest in Japan, in particular, on security of supply of the premium quality material. And that's from both government level as well as customer level. So there's definitely the shift to -- a very good stability for 6,000 product. Paul Young: Okay. And then another question on your production guidance for 2026. 2025, you did really well from a perspective of where you finished versus the guidance at the beginning of the year. Just on -- your guidance implies broadly flat year-on-year saleable coal production. Are there any movements mine by mine that is worth calling out between the open cuts and underground of Queensland versus New South Wales? And where production might be slightly higher or lower between the operations? Brendan Fitzpatrick: Thanks, Paul. We did know that there would be a slightly lower production in the first quarter, hopefully more steady production through the year. I'll turn to David Bennett, perhaps you could touch on elements such as the longwall movement schedules across some of the underground mines. I know, David, you touched on the overburden and some of the priorities that we had to have through the production schedule this year. But what can we say in addition to what we've already said with regards to the production profile and the mine-by-mine or state-by-state splits? David Bennett: Yes. Thanks, Brendan. And thanks, Paul, for your question. Look, our big mines in New South Wales, our big open-cut operations are fairly consistent with what we're expecting from them in 2026 versus 2025. There's some very small ups and downs between MTW and HVO. Moolarben open cut is basically producing exactly the same profile as what it did in 2025. In our underground operations, we're expecting extra production this year from Ashton mine. Last year, we had a big relocation from one mining domain into a new mining domain, and the longwall is in there now and producing. So this year, we're expecting quite a step-up in production from Ashton. Moolarben underground is doing a little less this year. Whilst it remains in the same mining domain, it's got an extra longwall move that will take the nominal sort of 35 days or thereabouts to do that move. So there will be a little less production from Moolarben open cut but more than offset by the extra at Ashton. So overall, from a New South Wales perspective, the volumes are very, very similar. And likewise, in Queensland, similar volumes there as well. But overall, when you put it all together, we'll do slightly more coal as per our guidance in 2026 compared to what we did in 2025. Paul Young: Yes. That's very helpful. And then last question for me is, the balance sheet is strong. It has been for a little while. You've got a number of underground projects. You're very good at developing underground. I know you've got the MTW underground approval in the works at the moment. There's a number of opportunities, I think, coming up in the market from an M&A perspective. And you've outlined a pretty positive outlook for metallurgical coal over the medium to long run in your presentation. So I'm just curious about where, again, maybe -- I know you've spoken about this in the past, where M&A fits as far as -- and how active are you looking at the moment for opportunities? Brendan Fitzpatrick: Yes. It's often one of the questions that comes up. I appreciate that one, Paul. Sharif, could I turn to you for some initial thoughts on how we're thinking about the balance sheet, internal opportunities and the broader context for capital management? Sharif Burra: Yes. Thanks, Paul. Look, we do have a very strong financial position, but noting we've also followed our dividend framework, and we have readily returned cash to shareholders. You'd appreciate international coal prices are improving. However, as we've mentioned, the strengthening Aussie dollar does adversely affect our revenue. In this setting, we are continuing to evaluate opportunities to improve shareholder value, and we will utilize our financial position once suitable opportunities are identified. We are aware of media speculation, but we don't comment on specific scenarios. What I would say is our strong financial position does enable us to explore opportunities that may arise. We are continually evaluating any opportunities in context of current market conditions. I guess it's worth noting that it is a continual process to evaluate opportunities, and we make that evaluation in the context of market conditions, as you've noted. Operator: Thank you. Yes, Brendan, back to you for webcast questions. Brendan Fitzpatrick: Thank you. I'll move on to the webcast questions. I can see several coming through. Some of them are touching on topics which we've already worked through. With the phone questions, I'll amalgamate or combine some of the questions to try and make the process efficient for all of us. Starting with a query about the reported profit. One of the people have made the observation that 2024 was a stronger year, 2025 net profit of $440 million. Should that be considered more of a mid-cycle earnings base, asking if we see downside risk to coal prices softening further. And also asking, at the current realized price, what we would describe as a breakeven cash flow. There are a few elements in there, which we wouldn't necessarily specifically comment on. But I think through the slides, we certainly demonstrated how the coal price links through to revenue, operating EBITDA and EBITDA margins. And with the cost profile we've established -- I think there's a reasonable capacity to sort of work backwards in terms of where we might get to, some sort of breakeven price. But the coal price assumptions is very much dependent upon the individual to form a view. The next question was, CapEx. We came in at $750 million at the lower end of the guidance. We did touch on this earlier, Mike, the split between sustaining and growth related. But perhaps we could just reiterate the -- what we see as the true underlying sustaining and what's the longer run reinvestment into the assets. Michael Wells: Yes. Thanks, Brendan. So also just to note, so in the $751 million, there's some $130 million of capitalized development with respect to our underground mines, which is the development done in advance of longwall extraction, which is included in that -- disclosed in the financials. Of the balance, I mean, more than 3/4 of that, certainly the majority is in relation to sustaining capital. That's sort of the level that we incurred in 2025, and that will be sort of similar going forward in the current year. Brendan Fitzpatrick: Thanks, Mike. There's a few questions related to dividend franking balances and policy. Perhaps, Kevin, we could test your thinking on these topics. There's a noted observation that franking credit balance is in excess of $2 billion. Conceptually, could sustain a fully franked dividend up over $4 billion. And there's also a general question coming through from Ian at CICC about the dividend policy. Could you give us some reiteration of the company's dividend framework and how the capital management considers special dividends in that context? Ning Su: Yes. Thanks, Brendan. From the company perspective, we try to maintain a consistent distribution to our shareholders. And following the policy, which is 50% NPAT or 50% free cash flow, whichever is higher. And that's exactly the dividend payout we follow this time. As a result, you can see a 55% payout ratio for the final dividend in 2025. It's a very good question about the franking credit balance of $2 billion. It's a very decent balance, which definitely enable us, as Yancoal, we can just keep paying fully franked dividend in a very -- for a very long period. But as a result, we will link this franking credit to the ongoing dividend payments instead of using the franking credit as a special dividend payment. Brendan Fitzpatrick: Thanks, Kevin. The benefit of a real-time webcast and market data is we can see the share price reaction. We have a question coming through that makes the observation that the share price is down about 10% today since market open and asking for a thought process on how we observe the equity market reaction and how we link that back to the priorities of dividends and other opportunities that the company might be considering in the short, medium and longer term. Sharif to start and then perhaps Kevin to follow up. Sharif Burra: Yes. Thanks, Brendan. I think if you look at the fundamentals, Yancoal had an exceptionally good year last year. We operated more safely, more productively and the discipline in our operations is certainly there. Yancoal is in a very fortunate position of being a very good coal miner with some very strong assets, and that certainly lays the foundations for Yancoal to explore certainly other opportunities. Ning Su: Thanks, Sharif. I think quite importantly, it's about how we look at the yield and how we look at the share price and how we plan from a capital management perspective to set the right discipline internally for the company to grow. From company perspective, we have to balance the growth, dividends and then potentially debt management, which fortunately enough, Yancoal has fully repaid all the loans 3 years ago. And now between the growth and the dividend, yes, normally, as a company, we do not keep 30% cash. I think that's a really good observation. But as a company, as Sharif just mentioned, we just need to have the right mentality to look at different opportunities. However, we are not in the position to give any comments to such opportunities, but we do want to have such flexibility to pursue value-accretive opportunity, which we believe is in the long-term interest of shareholders. And then we're still very strictly following the policy as I just mentioned previously, which is 55% payout ratio, we feel is a fair payout ratio for the year. Thanks. Brendan Fitzpatrick: Thanks, Kevin. I see Peter from CICC has been able to rejoin the call. Maggie, could we come back to you and find out what Peter was able to hear or not hear when he asked questions earlier? Operator: Yes, no problem. Just a moment for Peter. Next we have... Unknown Analyst: I'm sorry, my connection... Operator: Please go ahead, Peter. Unknown Analyst: Yes. I'm sorry, my connection just dropped when you talked about the cost guidance changes. I just want to confirm what portion of the upward revision in the cost guidance would you attribute to the inflationary pressures compared to others? Brendan Fitzpatrick: Yes. Thanks, Peter. We covered it whilst your line was out, but perhaps just to take the opportunity, if Mike could recover that inflationary element within the unit cost guidance? Michael Wells: Yes. Thanks, Peter. So essentially, our 2 major costs within our operating costs relate to labor costs and maintenance costs. And both of those would be expected to face inflationary headwinds in the current year, with our labor costs underpinned by enterprise agreements covering the majority of our site employees. And similarly, we'd expect some increases in maintenance costs being passed on by the OEMs during the year as well. After that, we get more into the commodity type pricing area, of diesel, electricity, explosives and things like that, where the position and how that will play out in the year is less certain. So safe to say there's certainly some inflationary costs will be embedded in our cost profile in 2026. And as we touched on before, the expectation is that we'll be able to offset to some degree -- some of that through further increases in production volumes as well as further productivity initiatives. So hopefully, that gives you a bit more flavor around how we see the cost in the current year. Operator: I see no further questions at this time. Brendan, back to you. Brendan Fitzpatrick: Thanks, Maggie. There's a follow-up question on the dividend policy topic. One of our participants asking if there's the potential to refine the dividend policy, potentially catering to noncash items or impairments and hence, adjusting payout ratio parameters. Kevin, can you give some thoughts on that topic? Ning Su: Sure. This is a very good question. I think one thing we should have elaborated more is, what I just mentioned, 50% NPAT or 50% free cash flow is all pre-abnormal items, which means all the noncash item or the normal items will be excluded. As a result, -- that's the reason why you can see a 55% payout ratio instead of strictly 50% payout ratio. And that's caused by the NPAT. Adjusted NPAT number is better than the adjusted free cash flow number. But I think that's a very good question. It's a good opportunity to clarify that. Brendan Fitzpatrick: Yes. And perhaps also worth clarifying that the policy is not rigid, the Board has discretion within the allocation parameters. One of the questions coming through relates to reserve depletion and how do we -- how does management think about reserve depletion and what should investors look at in terms of lead indicators for managing the coal reserves. I know that we've just published our reserves and resources statement alongside the financial results. There was some mining depletion as would be expected on an operating basis. But beyond that, it's a fairly steady-state reserve and resource basis with some specific adjustments for recalculation of geology. But perhaps a broad comment on how we think about the long-term reserve profile. Sharif Burra: Yes. Thanks, Brendan. Obviously, previously in the call, we mentioned the Mount Thorley Warkworth underground project, which we're progressing through the study stages. And the intent is subject to those studies, is to bring another underground mine online over time. Also, we regularly look at all of our assets and through our life of mine planning process, seek to optimize and further extend or take advantage of the assets in and around what we have. And the other arm to that is obviously the nonorganic opportunities that may present themselves over time. Brendan Fitzpatrick: Thanks, Sharif. Question coming through related to our coal sales. Somebody is interested in knowing if we have fixed price contracts with customers for this calendar year, what percentage is fixed or variable pricing and is that anything that changed from 2025 in terms of the contract status. So Mark, what can we say without giving away our commercial position? Mark Salem: Yes, sure. I understand, Brendan. Look, in terms of our price strategy, we always apply a risk mitigation strategy, and we also ascertain the market movement. We know prices declined in 2025, and we did see some recovery in -- so far in January, February and towards the end of 2025. And so we're always modifying our pricing strategy to reflect that in terms of what portion of sales that we do on a fixed basis versus a variable basis or based on the indices. And we apply a lot of rigor in terms of that strategy as well. Brendan Fitzpatrick: Thanks, Mark. I recollect that last year, we had a slightly higher than normal volume committed through the calendar year, which left us somewhat protected or less vulnerable to volatility in prices. Is it a similar approach to this calendar year? Can we say anything about that? Mark Salem: It is a similar approach. We are definitely focused on maintaining and capturing market share from a volume point of view. So in terms of our volume position, we're very well contracted going into 2026. And a lot of that is based on index profile. Brendan Fitzpatrick: Thanks, Mark. There's a follow-up question from Eunice at Millennium, wanting to check on that comment about the FX exchange losses, looking for some clarification on how we manage our costs and handle FX risks. So Kevin, perhaps I could turn it to you for a comment on FX exposure and how we think about it and manage it. Ning Su: Sure. If I understand the question correctly, it is about the foreign exchange impact on the cost side. Largely, the cost is in Aussie dollars. As what Mike just mentioned, the biggest portion is labor cost and also our maintenance cost. We do have some small portion U.S. dollar-linked cost exposure, which is something we can share with the investors. Yancoal's revenue largely driven by the U.S. dollar-linked indices. So as a result, we can always keep some U.S. dollar currency to reserve them and pay out of pocket for the U.S. dollar expenses. So it's a natural hedge itself. Thanks. Brendan Fitzpatrick: Okay. And Perhaps, Kevin, a question that might have some relation to that topic. It looks like the question is asking about the $2.1 billion we have in cash, and it seems to be asking about what sort of returns we get on the cash that we hold on the balance sheet. Ning Su: Yes. If we look at the sizable cash deposits, we have been very diligently to put them into term deposits to maximize return. A high-level indicative return is about 4%, plus/minus. Yes. Brendan Fitzpatrick: Thanks, Kevin. We're just coming towards the end of the hour that we've allocated. I see one final question. We'll take this one. It does link back to some of the discussion we've already had that perhaps it's an appropriate place to close out the call. Share price seems to be indicating that the dividend has disappointed investors. The question is, in our opinion, does this mean investors need to change the thought process towards Yancoal and the way the company approaches dividends? Or conversely, has Yancoal and the market diverged in terms of the current expectations in the short term and what value -- or how do we see value being generated going forward? So Kevin, could you give us your thoughts once more on how we prioritize dividends, capital management and that longer-term growth thought process? Ning Su: Sure. It's a very good question, and a way -- we fully respect the concern from the investor expecting higher dividend return, which is very understandable. And then from a management perspective, many executives holding Yancoal shares as well. So we fully appreciate the sentiment. But I think back to the position we shared earlier, first of all, the dividend is a part of profit. So to have very high dividend, we do need a good profit to support the dividend. And that's the point we made earlier, 55% payout ratio, managing all the capital -- CapEx and an uncertain market, we feel 55% payout ratio is a reasonable fair ratio. But at the same time, we also want to make this clearer. We do hold very substantial amount of cash. And then this is following Yancoal's management -- capital management discipline, which we have to balance between the value-accretive growth opportunities with rewarding our shareholders. And we, as a management team and from a Board perspective, try to do our best to maintain such a balance. We fully appreciate your understanding. Thank you. Brendan Fitzpatrick: Thanks, Kevin. We're at the end of the hour allocated. Sharif, could I hand over to you to provide the closing remarks? Thank you. Sharif Burra: Thank you, Brendan. 2025 was truly a year of great operational performance for Yancoal. We set world records at 2 mines and delivered record coal production. These achievements demonstrate our leading technical and operational capabilities. I believe we have some of the best assets in the industry and that our scale and competitive cash costs drive our performance. The guidance Kevin provided shows we're looking for further gains from our assets. We have a strong net cash position and continued access to debt markets. This provides considerable financial flexibility. We continue to reward our shareholders with fully franked dividends. We remain focused on what has made Yancoal the second largest coal producer in Australia, that's maximizing production, keeping costs under control and a balanced allocation of capital. We look forward to giving you our next update on the 21st of April after we release our first quarter production report. Thank you to everyone who joined us on the call. Have a great day. Brendan Fitzpatrick: Thank you, Sharif. Maggie, could you conclude the call, please? Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Peter Dilnot: Hello, everyone, and welcome to Melrose's Results for 2025. We appreciate you joining us to reflect on a transformational year and to talk through the exciting path we have for the future. We have lots of value to unlock, especially given strong demand and what we've done over the last few years to reposition our business. The key message today is that we're executing our plan. We've got a clear strategy to create shareholder value, and we're getting on with it. We delivered a strong performance in 2025. There's no doubt that we're operating in a complex and dynamic global environment and against this backdrop, our operating profit was up, driven particularly by Engines and Defense. We also delivered our cash target with positive free cash flow of GBP 125 million, and this represents a really important inflection point in our journey. Good commercial and operational progress continue to be made, and we also completed our multiyear transformation program. So this all gives us some very positive growth momentum, which is underpinned by the market where there's strong demand across both civil and defense. Indeed, in all parts of our business, demand is very definitely on our side. We have established positions on all the world's leading aircraft and their engines, and this positions us squarely to benefit from strong future production ramp-up and the Aftermarket, most notably in Engines. Beyond this, the differentiated GKN technologies that we've prioritized are being actively sought out by leading OEMs. So we're nicely on track. We've got a clear path to delivering growth, margin expansion and increasing cash. This will deliver ongoing shareholder returns. And on that note, we're pleased to announce today a new share buyback program, reflecting our confidence in hitting the 2029 targets. So I'll just say a few words on these 2 themes covered here, starting with 2025 performance. In 2025, we delivered financially, commercially and operationally. Sales were up 8%, margins were up 240 basis points. And as I've said already, cash came through positively. On the commercial side, we continue to make good progress, particularly in our target areas, such as winning contracts in our aftermarket blade repair business and the rapidly emerging military uncrewed market. Now from an operational perspective, we delivered further improvements in safety, quality and productivity. And I'm going to talk more about this in the second half of the presentation because clearly, operational execution is important here as we ramp up. Turning now to our positive growth momentum. At the highest level, there are 2 aspects to this, the strong market and the plan we're executing to unlock our potential. On the market side, our unique Tier 1 portfolio is embedded on all the world's leading aircraft. So the demand for our products and our technologies is at record levels. We have civil order backlogs going into the 2030s, structural aftermarket demand growth and the turbulent world is driving an unprecedented increase in defense spending. And then there's the next generation of aircraft where our technology is being actively sought out for future developments. Turning to the execution side. The last few years have been about transformation. We've focused GKN Aerospace on where we can win with design-led positions. We've exited noncore or cash negative businesses, and we've repriced lots of work where we needed to get sustainable returns. In parallel, we've rationalized our footprint from 50 to around 30 sites. Back in 2023, we were operating at 12% margin, and we were cash flow negative. We've just announced results today with a 600 basis points improvement in margin to 18%, and the cash is nicely positive. So quite some changes, and we now have a great foundation for further gains. Going forward, it's a different type of growth because the restructuring is complete. Given the expected sales increase, we're going to see operating leverage from the ramp-ups, further productivity improvements from our improved cost base as well as the gains coming through from our operational and commercial actions. So we are well positioned, and we know the levers to pull. This gives us confidence in delivering 24% plus operating margin and GBP 600 million of free cash flow by 2029. We'll return to this in the latter part of the presentation. But for now, let me hand over to Matthew to talk in more detail about 2025 performance. Matthew Gregory: Thanks, Peter, and good morning. It's a pleasure to talk about the business' strong performance in 2025 with profit and free cash flow in line with our expectations. Group revenue grew 8% on a like-for-like basis, led again by the Engines division. Group operating profit took another significant stride forward, growing 23% to GBP 647 million due to the revenue growth and the further impact of our business improvement programs. Margins also continued to grow, up 240 basis points to 18% and EPS grew significantly, up 25% to 32.1p per share. These are a strong set of results with continued profit growth and a major milestone achieved, delivering positive free cash flow in line with our commitments. Turning to Slide 7, breaking this down by division. Both divisions delivered revenue growth, and our performance continues to be driven by the ongoing strong performance of the Engines business, up 15%. You'll notice that we've changed the name of our Structures division to Airframes, and Peter is going to explain more about that later on. So Airframes saw growth of 3% with the strong performance of Defense constrained as expected by the ongoing supply chain challenges being experienced in the sector, which is holding back civil OEM production rates. Margins continue to grow in each division due to the buoyant engines aftermarket as well as the benefit of our business improvement programs. And both divisions are making progress towards our 2029 targets. So digging deeper into each division. Turning to Engines on Slide 8. Revenue growth was robust at 15% up with both OE and aftermarket contributing almost equally. OE grew 16%, and this was driven by higher GEnx and GTF volumes and the higher spare engines ratio as well as good growth in our non-RSP commercial contracts, including our military ducts business. It was good to see the strong growth for OE in H2. While some of this resulted from the unwind of H1's tariff impact, the underlying OE growth in the second half was still well into the teens. This reflects the volume ramp and bodes well for future OE growth. Turning to aftermarket. This revenue was up 14% in the year. RSP revenue performed well with growth of 20%, and that revenue included GBP 324 million of variable consideration, which grew by 22%, meaning the core RSP portfolio grew at 19%. As expected, due to a strong comparator, our Swedish military business declined 7%. But it was good to see, though, a return to growth in the second half, up 7%. We continue to deepen our relationship with the Swedish FMV and have been awarded a contract to develop an uncrewed aerial vehicle demonstrator within 18 months. In addition, this business signed an agreement with the FMV to explore the propulsion requirements for future fighter systems, and we also signed an agreement to supply several mission-critical components for the Ariane 6 launch vehicle. After a challenging first half caused by tariff disruption, our aftermarket Repair business returned to growth of 24% in the second half. Overall, the business grew 12% in the year. We continue to make good commercial progress in repair, winning a contract with Rolls-Royce to be the sole external supplier of fan blade repairs on 3 of their engines and with Boeing for C-17 fan blades. We also entered into a 5-year contract extension with Pratt & Whitney for critical fan blade repairs. Operating profit for the division grew by 27% to GBP 520 million and margins at 31.9% continue to rise. The strong margin reflects the growth in the highly profitable aftermarket business as well as continuing improvements in productivity and quality in this division. So a very strong performance from the Engines division despite tariff and supply chain challenges with further growth and improvement to come. Turning to Airframes on Slide 9. This division delivered 3% like-for-like revenue growth. This was driven by defense, which was up 15%, where increased build rates and improved commercial terms read through in the year. At the half year, we confirmed we have met our target of 85% of the portfolio being sustainably priced, and this rose to over 90% by the year-end. Defense continues to develop commercial opportunities, signing an agreement with Anduril Industries to collaborate on next-generation uncrewed aerial vehicle solutions. The partnership with Anduril, which includes advanced composite aerostructures, wiring, a ground-based demonstrator and advanced flight testing will initially target the U.K. government's upcoming Land Autonomous Collaborative Platform and the British Army's Project, NYX. Elsewhere, the Defense business has secured 2 follow-on contracts for C-130J and Typhoon transparencies. On the civil side of the business, revenue was marginally lower, down 2% as a result of modest growth in our key narrow-body and wide-body platforms, which is still impacted by continued supply chain issues affecting OEM production rates, offset by declines in business jets and other platforms. Commercially, we signed an agreement with Archer to expand engagement on the Midnight eVTOL platform, which has been selected as the official air taxi provider for the 2028 Los Angeles Olympic Games. Margins for Airframes continue to improve despite the slower ramp-up with the impact of pricing, business improvement, restructuring and the sale of lower-margin businesses all dropping through. Margin progress, however, was constrained by lower civil volumes as well as lower productivity at one of our manufacturing sites in the Netherlands. Our plan to resolve this issue during 2026 is already well underway. Operating profit grew by 10% to GBP 156 million, and margins grew from 7.2% to 8%. So despite the volume and supply chain challenges, the Airframe division continued to deliver profit and margin growth with more improvement to come when the ramp-up impacts our volumes. So let's now talk about the numbers below operating profit on Slide 10. We put the details of adjustments to operating profit in the appendix. From that, you will see that now we've finished our restructuring programs, the size of that adjustment is much reduced. Net financing costs are GBP 132 million, which largely reflects the interest on bank loans with an average cost of 5.3%. The ETR for the year ended lower than expectations at 20.4%, and this was due to the recognition of certain tax assets in Malaysia and Sweden. A combination of all of the above and a steadily reducing share count shows EPS of 32.1p, growth of 25%. And as a result of the strong performance in the year, a final dividend of 4.8p per share is proposed, increasing the full year dividend to a total of 7.2p per share, up 20% from last year, and this is in line with our capital allocation policy. So now let me turn to our cash performance for 2025 on Slide 11. We were pleased that we hit our cash target, delivering positive free cash flow in excess of GBP 100 million. Free cash flow post interest and tax was GBP 125 million with GBP 200 million more than last year. Moving into a little more detail, we have split out the movement in variable consideration, continuing to give transparency as to how this affects our results. And at GBP 324 million, this was very much in line with guidance. As expected, trade working capital performance in the second half of the year was strong, reflecting the seasonality of the business and the sector, augmented by certain customer settlements, which we expect to continue. For those of you that want it, in the appendices, you will be able to see our factoring position, which ended the year at GBP 396 million. This reflects growth in the existing programs and the ramp-up in the last quarter. Just to confirm, no new factoring programs have been or will be entered into. With respect to the powder metal issue, we saw GBP 68 million cash cost coming through in 2025, in line with our guidance. CapEx was GBP 94 million and represents 0.9x owned asset depreciation and amortization. This reflects continued investment in strategic growth initiatives, but also the capital expenditure on major restructuring projects was completed last year. And I'm pleased to confirm that our restructuring programs have now concluded. From a cash perspective, the cost was GBP 31 million, which is below our guide. And to confirm, there will be no significant cash cost in 2026. Moving on to the share buyback program. During 2025, we returned GBP 173 million to shareholders from the GBP 250 million program announced in 2024. In the first quarter of 2026, there is a further GBP 60 million to be spent to complete this program. Net debt ended the year at GBP 1.4 billion and leverage at 1.8x net debt to EBITDA. This was in line with our expectations and our capital allocation policy leverage target range of 1.5 to 2x net debt to EBITDA. So having talked about 2025, let me now give you our guidance for 2026. All of this guidance is given at $1.37 to the pound. First, the P&L on Slide 12. Given the expected OE volume ramp-up and the strength of aftermarket in the sector, we expect to see continued robust revenue growth in 2026. This is despite the persistent supply chain challenges that are affecting the whole aerospace industry. We are guiding to revenue from GBP 3.750 billion to GBP 3.950 billion, which at the midpoint represents like-for-like growth of around 10%. And this revenue growth continues to be weighted towards Engines. Given the strength of our aftermarket business and our margin improvement plans, we're guiding to operating profit between GBP 700 million and GBP 750 million. At the midpoint, this represents profit growth of around 16% and the midpoint margin is around 19%. At a divisional level, we expect Engines to maintain strong growth rates in double-digit territory with growth weighted to the aftermarket. Operating profit guidance is GBP 565 million to GBP 595 million, and this includes variable consideration of around GBP 360 million at the midpoint, and we expect margins to be around 33%. The Airframes division is expected to show high single-digit revenue growth on a like-for-like basis. This reflects an element of civil ramp-up alongside continued growth in defense. Operating profit is guided at GBP 170 million to GBP 190 million. We expect to hit 9% margins this year through growth and improving Airframes operating performance. PLC costs are expected to be GBP 35 million this year, including around GBP 3 million of noncash LTIP cost. Now I had hoped not to mention tariffs today, but events in the last few days has the potential to cause further disruptions. We continue to caveat our guidance for any new tariffs, and we wait to see how the recent announcements are actually processed in the U.S. customs system. I can confirm, though, as a result of the swift and firm action on this subject during Q2, tariffs have not had a material impact on our results in 2025. Moving down the P&L for 2026. I'd expect absolute net interest costs to increase, reflecting the continuation of the share buyback and the fact that the cash generation will continue to be back-end loaded. For 2026, the interest rate for gross bank debt is expected to be around 5.3%. Guidance for ETR is 21% to 22%, and this is still very much weighted towards the Swedish tax rate, but will depend on the precise balance of profits during the year. So from a P&L perspective, we're guiding to continued strong growth in the business with top line and operating profit moving forward significantly. Turning to our cash guidance for 2026. We introduced formal cash guidance in 2025 with our commitment to deliver GBP 100 million plus of free cash flow. We now intend to guide a range for cash flow like our sector peers do. The overall guidance for free cash flow post interest and tax is GBP 150 million to GBP 200 million, which is GBP 175 million at the midpoint with the range reflecting the size of the group. Let me work through some specific guidance to help your modeling. I've just given P&L guidance as well as the guide for noncash variable consideration. Whilst we are still experiencing supply chain disruption, we would hope that this starts to turn a corner by the end of the year. As such, we do not anticipate significant growth in trade working capital, and we do expect further customer settlements in the year. Resolution of the powder metal issue is expected to have around a GBP 50 million impact in 2026, and we remain confident that the total cost of Melrose of resolving this issue will be within the GBP 200 million advised by Pratt & Whitney at the outset. We expect CapEx for 2026 to be around 1.2x owned asset depreciation and amortization. This is higher than prior years and reflects our commitment to strategic growth initiatives. I'm going to give you more color on this on the next slide. Whilst historically, we have left you to estimate cash interest, we are now guiding to the 2026 interest cash cost being around GBP 130 million. Cash tax costs will increase in absolute terms for 2026, but will still be low compared to the P&L, around 4% of the adjusted profit before tax. When you combine all of this with the fact that there will be no material restructuring cash costs in 2026, we expect leverage to continue to be below 2x EBITDA within our capital allocation policy. So to repeat, free cash flow after interest and tax is guided at GBP 150 million to GBP 200 million. And this cash flow will continue to be heavily weighted to the second half of the year, in line with historic Melrose and sector seasonality. My final slide, Slide 14, reiterates our capital allocation policy. We are now a business that generates positive free cash flow, which will increase each year to our 2029 target of GBP 600 million free cash flow. We will look to allocate that capital in a disciplined manner in 3 ways: Firstly, we continue to invest in the business, both for maintenance projects as well as investing in business expansion opportunities. In 2025, we invested in our additive fabrication expansion in Sweden and Norway. We also completed our new repair facility in California and set up a new wiring facility in Mexico. In 2026, investment will grow to 1.2x owned asset depreciation and amortization and will include further investment in additive fabrication and expanded building in one of our U.S. facilities as well as investment in capacity for the OE ramp-up in Engines. From a balance sheet perspective, we intend to be efficient by maintaining leverage of between 1.5x to 2x net debt to EBITDA with a view to attaining investment-grade metrics over time. Provided the first 2 pillars of our policy are satisfied, we will then look to return cash to shareholders. And we'll do this in 2 ways. Firstly, we will continue to grow our annual ordinary dividend, and you've seen that we've announced a final dividend that represents 20% annual growth. We will then make share buybacks considering free cash flow delivery and leverage targets. It's worth noting that once the current GBP 250 million program is completed, Melrose will have returned more than GBP 1 billion to shareholders in dividends and buybacks over the last 3 years. Taking all of this into account, today, we announced a new GBP 175 million 12-month share buyback program, which will commence once the existing program completes at the end of March. As previously announced, our share buybacks will be considered annually to tie into our year-end reporting process. We believe that our capital allocation policy reflects our intention to invest in the business, a disciplined approach to leverage and make sensible returns to shareholders. So to conclude, the business has performed well in 2025. And despite tariff disruption and supply chain challenges, we expect to deliver robust growth and margin improvement in 2026. We have passed the inflection point for free cash flow, and we will build on that good momentum as we progress towards our 2029 targets. And with that, I'll hand back to Peter. Peter Dilnot: Thanks, Matthew. As you say, let's now talk further about our growth outlook. To start with, I think it's worth just recapping what Melrose is today. We have a unique Tier 1 portfolio that we've repositioned to deliver value for the future. It starts with 2 end markets, civil and defense. and serving these markets, we have an Airframes business and an Engines business, both of which play in the OE side and the Aftermarket. So there's a number of dimensions to our business. In Civil Engines, we have an RSP portfolio that gives us an entitlement on 70% of global flying hours, plus an increasing network of parts, repairs facilities. In Civil Airframes, we have design positions on all the world's major aircraft. We serve Airbus, Boeing and increasingly COMAC, and we have a good position on leading business jets. In Defense Engines, we partner with all engine OEMs as the leader in military ducts as well as technology on the Pratt & Whitney F135 engine and supporting the Gripen fleet. In defense airframes, we have embedded positions on all the major rotary and fixed wing platforms, particularly the F-35, and we're also on key European platforms. So it's fair to say we have real breadth in aerospace and defense, and our positions are typically sole source. And against that backdrop, we all know there is strong demand growth, so I won't dwell on this slide. But I do want to reinforce on the civil side, we've got record backlogs going out into the 2030s. And in the last year, we've seen a big increase in wide-body orders, which is good news for us given our positions on the A350, the Boeing 787, GEnx and XWB. There's also increasing shop visits as flying hours go up. On the Defense side, it's clear that there's a generational uplift in NATO spending going forward, both in Europe and also likely in the U.S. And then there's this new opportunity with uncrewed aerial vehicles and our development teams are hard at work here. So suffice to say, demand is strong, reassuring and underpins our business. Now I'll turn to each of our businesses in turn, starting with our Engines business, which is unusual because it serves all of the OEMs. At its heart is our RSP business. And here, we provide load-bearing components on all the world's leading engines where such partnerships exist. What this means is every time one of those engines is shipped, then we have a lifetime entitlement to the aftermarket revenue and profit. And of course, that generates significant cash for decades to come. Our government partnerships business is where, among other things, we support the Gripen fighter jet. We're the provider of aftermarket support globally. And of course, this is certainly a growing fleet as in the last year, again, we've seen more nations buying more planes. Then we have our repair business, where we have invested and built new highly automated sites to meet demand in growth areas such as blades, blisks and disks. It's a purely aftermarket business serving growing global market needs. And then to round out the portfolio, the commercial contract side, where we have long-term agreements on all the engines that are out there even when we don't have an RSP. And this effectively gives us some balance as it's an OE business giving us exposure to all production ramp-ups. Now the final thing I'd say on Engines is we shouldn't lose sight of our breakthrough additive fabrication technology, which is in demand from all the OEMs now and for the future generation. And I'll talk more about that shortly. Engines is an exceptional business. So now on to our design-led airframes business. This is a business that has global reach and also local presence. As Matthew mentioned earlier, you'll notice that we've used the word airframes here. Historically, we've called this our structures business. But as this slide shows, our technologies and products span beyond structures, including our leading wiring business and also transparencies. On the composite side, we have leadership in terms of design and advanced manufacturing methods. We make major components for aircraft like the Boeing 787, the A350, F-35 and Black Hawk, and we have deep capability through our global design technology centers. This is an OE business facing significant ramp-up with existing and next-generation aircraft. Turning to EWIS now. We're one of the top 3 global players in wiring. Here, we supply defense aircraft such as the F-35 and a broad fleet of civil aircraft. We have proprietary design capability and a global footprint covering North America, Europe, India and China. And again, this is in demand with more electrification and higher voltage requirements going forward. In transparencies, we're effectively the sole high-volume provider of canopies for the F-35 fleet. We make Boeing's passenger cabin windows and have breakthrough technologies to bring forward for the next generation. And finally, metallics, which is a core and differentiated part of the business that's at the heart of the world's high-volume aircraft such as the A320. This is a broad portfolio, and it's important to reiterate that what differentiates us is the combination of design and cutting-edge production capabilities. So across Engines and Airframes, we have established positions on all the world's leading civil and defense aircraft, and this really is the cornerstone of our strategy. Many of you have seen this slide before, and no apologies for sharing it again as it's central to the value Melrose will generate in the future. There are 3 waves to our strategy. First, 90% of the value that we will unlock is delivering growth in the existing platforms from production ramp-ups, RSPs, engine repairs and of course, in everything we do, operational excellence. Second, beyond the existing platforms, we've identified target areas very selectively where our breakthrough proprietary technology is most in demand from our customers and our customers' customers. Most notably, this is in additive fabrication, military uncrewed aircraft and advanced air mobility. And thirdly, actively participating in the next generation of aircraft. This includes being the only engines player to have a position on both current next-generation single-aisle engines programs as well as working on the sixth-generation fighters such as GCAP. So I'll now talk about our progress in each of these 3 waves, starting with existing platforms. Aircraft production has clearly been constrained by the supply chain over the last few years. And in some areas, this is still the case, but the ramp is coming given the demand backdrop. There's ongoing and live discussions about what rate will come through and when, but production is going to increase over time. On civil airframes, we have a weighting towards wide-body and Airbus. And on the Engine side, each new aircraft needs 2 engines, and we're involved in all of them. On the defense production ramp-up, this is driven by increased spending, and this is evident from material increases in recent orders that will need to be built with existing fleets, for example, F-35s, Gripens and Typhoons. NATO's ambition is for these aircraft and new UAVs to be built swiftly given the threat environment. We, of course, need to make sure we can deliver the ramp. And to start with, our operations are now positioned around technology centers of excellence. We're investing in capacity, automation, robotics and AI. And we've also got an industrial plan, which we're working on to scale up for defense over the longer term. So the supply chain is gradually easing, production is ramping up, and we're positioned ready to serve our customers. Our next area of growth from existing platforms is the Engines Aftermarket. Let's start with our RSP portfolio. Now it's important to recognize that we do have legacy engine RSPs generating cash, particularly on programs such as the CFM56 and the V2500. These engines are flying longer, and that benefits us in the short to medium term. But as those engines do retire, they're replaced by new engines, in particular, the GTF, XWB and GEnx, where we have an RSP program share, which is much greater than the legacy engines. So as those legacy engines get replaced by newer engines, we're set to benefit on 2 counts. Firstly, there are more engines flying. And secondly, our program share on those engines is greater. So we have a significant compounding impact with more returns from the Engines Aftermarket. Now I should also touch on the importance of the GTF here. Right now, the 2 GTF variants are the only engines out of our portfolio of 19 RSPs that are not cash generative. There are still net cash outflows associated with the GTF. These are the PMI inspection program, which is set to complete in 2027 and further investments in the final stages of engine development. The promising GTF advantage is now starting to come into service, and we expect the overall program to become cash positive for GKN in 2028. This will have a major impact for us, which further compounds the RSP growth story and its embedded value. Beyond RSPs, we have our engine repair capability, where we're building on our legacy position with 2 new state-of-the-art facilities in California and in Malaysia. Our repair service is very much in demand as older engines are flying longer and of course, more sophisticated repairs are needed as newer engines take to the skies often in harsher environments. Now all of this needs to be delivered in a way that serves our customers well and generates financial returns. And to do this, we're increasingly embedding an operational excellence approach, which we call the 3 brilliant basics. This is centered on lean principles and a continuous improvement model that involves 3 levers: daily management systems, problem solving and breakthroughs. But what does this really mean? If you cut it all the way through, we have key metrics for operational performance, which are cascaded from the shop floor, so literally from Tier 1 team leaders level, up through every management layer to the boardroom. Each level has measures that it controls, and we strive for improved performance every day. It all adds up. Now we've been at this for the last couple of years. It's delivered some benefits to date, but there is much more to come, especially now our restructuring is complete. The core measures are SQDIP or safety, quality, delivery, inventory and productivity. In 2025, we saw further gains in safety, which was 32% better, and I'm proud to report this results in 80% less accidents over the last 3 years. Quality and productivity also both improved in 2025 as this chart shows. At the same time, we've had some challenges along the way. These include the operational issues at one of our Dutch sites, which Matthew mentioned earlier. And here, we're well underway with addressing the root causes, including with our supply chain partners. Our arrears are also not where we want them to be on all programs. With inventory, we've increased our levels. And frankly, we've had to trap some cash in doing that to protect customer delivery. As for the future, our aspirational target is to have zero harm, no escapes and no overdues. We'll also reduce our inventory carefully over time, and we will drive further productivity gains, including from operating leverage as the ramp comes. We know how this needs to be done. It requires granular and focused work throughout our global enterprise, but we have the toolkit and the operational excellence approach to deliver our potential. Beyond delivering growth from existing platforms, we're expanding in targeted new opportunities where we're advantaged and we have a right to win. I'll highlight 2 such ongoing opportunities today. First, additive fabrication. This is a breakthrough technology, which has the potential to replace structural forgings and castings, which continue to constrain engine production rates today. This technology is not a new idea. It's in full serial production on the fan case mount ring on the GTF. We're not just using established additive manufacturing methods, but instead using our proprietary software and robotics to guide lasers that deposit titanium and alloys into near final form structural components. We have an encouraging pipeline of parts from OEMs and are working to certify them to expand this technology's reach, impact and value. Beyond the certification, we're industrializing the production process so that we can manufacture at high volume and low cost. This technology is in demand, not just because it's a smart, efficient and sustainable way to make parts, but because it can support Engine OEMs in a concentrated and challenging supply environment. The second opportunity here is military uncrewed vehicles. This is a new market and an evolving one due to the nature of conflict and ongoing global tensions. We're in demand here, particularly as NATO nations typically want to have their own sovereign capabilities. The development cycles are shorter here, too, and we're working across a range of countries to build new platforms at pace. We've already mentioned a couple of projects in the public domain with the FMV in Sweden and our partnership with Anduril in the U.K. We plan to tell you more about these breakthrough opportunities through investor teach-ins later this year. And finally, I want to mention we think it's important to deliver our growth sustainably, and we're taking focused steps to ensure that this is the case. From an environmental perspective, we beat our 2025 targets comfortably, and we're just issuing new ones for 2030. These are aligned with protecting the environment and doing our part in terms of how we're operating the business. From a social perspective, I've already touched on our ongoing safety improvements, and we're also investing in terms of diversity and our people engagement. And in governance, we've transitioned our business and our Board to reflect our aerospace and defense business model with a combination of new NEDs and a new chair with deep global A&D experience. So as we're growing the business, we're aiming to do so in the right way and with the right team. As I wrap up here, I want to reiterate our confidence in delivering the 2029 targets. Just to recap on these, top line growth to GBP 5 billion of revenue, 600 basis points of margin expansion, GBP 1.2 billion of operating profit and GBP 600 million of free cash flow. Now just like other parts of our business, we have momentum on free cash. We've gone from the performance in 2024, which was negative to a GBP 200 million swing this year. We'll see incremental improvements in 2026 with the guide Matthew has already taken you through. And this will then step up further to GBP 600 million in 2029. Now let's be clear, we know what the levers are, and we also know what the trajectory is here. Essentially, there are 3 core drivers for this step-up. The first is the growth in EBITDA from the ramp-up that I have just described. The demand is there. We're well positioned to generate more profit, which converts efficiently to cash. The second is increasing cash returns from our extensive RSP portfolio. And again, we have a locked-in position here, and this is all about the engines going into their shop visits and us capturing our entitlement as they do so. And then finally, and importantly, the GTF, which is set to turn cash positive for us. This is a function of both the completion of the PMI inspection program in 2027 and then the development costs reducing and being more than offset by cash-generative shop visits from the flying GTF fleet in 2028. So simply put, our assumptions are market-based forecast, combining together with our execution to deliver the GBP 600 million of free cash flow. So with that, I'll close and return to the message I started with. We know what we need to do, and we're executing our plan. We've delivered strongly in 2025, and we've got great momentum for the future. This gives us confidence about delivering our exciting potential in the years ahead. And with that, I'll open to questions. Operator: [Operator Instructions] Our first question today comes from Mark Davies Jones from Stifel. Mark Jones: I had a few sort of unrelated ones, if I may. Can I just start with GTF? We've had a lot of talk about that. But can you make any comments on the dispute between Airbus and Pratt at the moment? Is there any risk of financial penalties or additional cost that impacts your free cash flow assumptions around that program? That would be the first one. Should we start on that? Peter Dilnot: Yes. Yes, clearly, a very public discussion between Airbus and Pratt & Whitney, and these are both important customers for us. Obviously, Airbus facing strong demand, record backlogs want to ramp up as much as possible and therefore, demand on the engine side. And then at the same time, you've got Pratt who are dealing with a situation which is not only to support the OE side, but also to support shop visits and make sure that the flying fleet is in good shape. And there's a balance there, which Pratt is the overall owner of that program is best placed to judge. And clearly, that debate is going on between the OE and the aftermarket side. We're ready to support our customers on both. And of course, our guidance is very much in line with that. Relative to the sort of cost of any issues, I think relative to the GTF, we're just reiterating the whole PMI costs, and those are very much in line with expectations. And specifically on any dispute between Airbus and Pratt, we think an agreement will be reached. So nothing more to say on that one for now. Mark Jones: Okay. And then could you give us a bit more detail about what's going on in the facility in the Netherlands and the sort of scale of any impact there in terms of its impact on profitability? And then the final one was just on the defense outlook, particularly the Swedish business. Obviously, a transitional year in '25. Would you expect that to be back in good growth in '26? Peter Dilnot: Yes. I mean, specifically on the Netherlands side, this is a productivity issue that relates to actually moving production from one facility to another and also some supply chain issues. And those supply chain issues we're dealing with, but they have had also an impact in terms of our first pass yield. In terms of the impact of that, it's a mid- low single digits, but we believe it's important to call these things out. And critically, the key thing here is that we have taken the steps to rectify this as we continue to deliver productivity. But amongst the global business, we've moved things around. Most things have actually gone very well, and our restructuring program has read through very nicely, in fact, ahead of expectations. This is just one particular issue that we've had to deal with. So contained, we know what we need to do, but we're also straightforward about it being an issue. I think you then asked about defense. I think you... Mark Jones: Swedish defense. Peter Dilnot: Swedish defense. I think what I'd just step back and talk about defense is I just have on the presentation, which overall is a rising tide, if you will, for existing fleets. And the Swedish opportunity is actually in the new and emerging market of uncrewed aerial vehicles, which is driven, I think, firstly, by the nature of war fighting, but also the need and the desire for NATO sovereign countries to have their own capability. And in doing that, bringing those things together, uncrewed vehicles can be developed quickly, locally, and we're very much at the sophisticated end of this. And with the FMV, which is one that's the only project really that's in the public domain. We're very busy actually more broadly than the FMV, but with them specifically. It's a demonstrated program funded by the Swedish government to have an uncrewed vehicle which would deploy alongside their forces. And I think what's really exciting about this for us is that it builds on our legacy position in terms of composites and our airframes business, coupled with our clear leadership in propulsion with our Engines business. So the combination of those 2 things meeting a need for customers. And we expect this market to continue to grow and to develop. We're very well placed to do that. And again, there's other areas that you've seen and we've talked about, including here in the U.K. and also some activity in the U.S. Matthew Gregory: And just to add to that, Mark, I think you saw in the presentation, we're pleased to see that return to growth in the second half. So that bodes well for 2026. Mark Jones: Our next question comes from Sam Burgess with Goldman Sachs. Samuel Burgess: First one, just on the structures again and some of those headwinds you had this year. If you could just help with the level of confidence that you have on that bouncing back and becoming a tailwind to growth maybe through '26? Or is that something that more materializes in '27? Any visibility there? And even by customer or program would be very helpful. And then secondly, I saw your trade working capital performance in H2 looked reasonably strong. You referred to certain customer settlements in the report. If you could just give some visibility there and if that's one-off or recurring, that would be helpful. Peter Dilnot: Thanks, Sam. I'll take the first one and Matthew can pick up on the working capital point. Look, on structures, we're repositioned this business now so that it's focused in the right areas with the right operating footprint. And the trajectory that we've got, I think it's worth just stepping back for a moment because we set out with some targets in our 2023 capital markets to get significant margin expansion. Indeed, we've overdelivered against the areas of our repricing activity and also in terms of business improvement. So we're up 500 basis points over the last couple of years. So it's clearly positive trajectory. The one area, and you're right to put it out, and indeed, it's reflected in both our results and our guide is that the volume isn't quite coming through as we would have hoped back then. Indeed, it's about 10% lower than we expected because of the supply chain issues. This is clearly well known and flagged by our customers, including Airbus. So that's where we are today. I think the important thing reading forward is our confidence about the margins because we're up at 8% margins despite much, much lower volume. So as that volume comes in, and it will come in, I mean, the backlog is there, we will see that drop through. So we're as confident as ever that we've got the right positions, and we're well placed to deliver that ramp-up. The pace of that ramp-up is clearly guided by our customers themselves, but we'll see continued margin progression this year, and that's consistent with the guide that we've given. But beyond that, we absolutely stand by our pathway to get this business to low teens by 2029. So actually, underneath the volume, the other things that we've done, we've actually outperformed to drive this margin expansion. So when the volume comes in and it will over time, that will read through nicely in terms of our structures business. Matthew Gregory: Yes. And to talk about the trade working capital, yes, absolutely, this business will always have a very strong working capital performance in the second half. That's just the seasonality of the business. And we talked about this at the half year that we expected that performance to be stronger, and that's how it's turned out. In terms of customer settlements, yes, we said that there were some customer settlements coming through in 2025. We can't really talk about the details of those. It really reflects sort of conversations and negotiations we have with our customers. We did say earlier in the year that they would continue and look specifically as part of our guide for trade working capital for 2026, we're expecting a sort of similar level to come through in the working capital and the cash flow. Operator: Our next question comes from Ian Douglas-Pennant with UBS. Ian Douglas-Pennant: Yes, Ian Douglas-Pennant at UBS. So the first is on your receivable factoring, please. That was a lot higher than I was expecting in 2025, that GBP 58 million. What is the pound number that we should expect in 2026? What is contained within your GBP 150 million to GBP 200 million for receivable factoring? That's my first question. The second question is on the buyback. Can you help us understand the -- why are you doing GBP 175 million buyback? You generated GBP 66 million of free cash flow before factoring in 2025. You've got interest costs of GBP 130 million. Wouldn't that cash be better used to be paying down debt? Matthew Gregory: Yes. Well, let me take both of those, Peter. So firstly, on the factoring, look, let me step back a little bit and sort of talk about factoring. We've been very transparent about the factoring that we do, and these have been in place for many years, historic with the business and is very -- relates to very specific programs. We've also been very clear that we're not going to enter into any new programs on the factoring side, and that's exactly what I've confirmed. So the reality is the growth in the factoring relates specifically to the growth in the programs that we have factoring on. And look, I think I want to be clear that factoring is not driving our cash flow. I know that's how some people like to put this stuff into their models. What's driving the cash flow is the manufacturer product, the shipment of the product, the invoicing of the product. And then we get paid immediately for that through our factoring programs. So it's really the operational performance that's driving the cash flow, not the factoring. So that's really what I'd say about the factoring. When you look at to next year, we're not going to guide specifically on the programs. We're not going to get into that level of detail. We are suggesting that a proxy for the factoring would be the growth in our revenue, which we're saying is going to be around 10%. Now what we can't do is say -- sorry, specifically when those programs grow, when the product gets shipped when the invoices happen. And one of the reasons why the factoring at 17% growth is slightly higher than the revenue growth, although it's close to the engines growth is because our engines programs have performed really well, and they performed really well in the last quarter. I mean for me, the good thing to get from this is that we are driving growth in the business, growth in EBITDA, and we're getting paid for that very quickly. In terms of the share buyback, look, it's a good question, and I think lots of people have lots of different views on this. Our -- we have a very clear capital allocation policy that says we are going to grow our cash flow, the sources of cash. We're going to invest in the business, and you can see that our CapEx is growing in 2026 on our maintenance and our growth initiatives. And then we're going to maintain leverage between 1.5 to 2x. And if those 2 things are in place, then we will look to return cash to shareholders in a sensible and disciplined way. We have a dividend and then we have the share buyback that we looked at. I would suggest to you, though, we did deliver GBP 125 million of cash. you can cut it in many different ways. We delivered GBP 125 million of cash -- free cash flow as we said we would. And I think we take that into account. We take the market into account. We take the fact that we've got our aftermarket coming towards us into account when we consider our share buyback decision. And that's where we've got to. We're very pleased to announce GBP 175 million 12-month share buyback program. And we're comfortable with that because it meets our capital allocation policy. Peter Dilnot: I think the other thing I might add just to that, Matthew, is I think the share buyback is also a sign of confidence. Our free cash flow did GBP 125 million this year, GBP 600 million. We're continuing to guide to that and very confident that we can grow into that. So our cash flow is increasing. And as a sign of that confidence, we have the ability to demonstrate that aligned with our capital allocation policy with a continued buyback. So it's the policy and then overlaying that is continued confidence that we know what we're doing. We've got the right demand, the right positions, and we will generate cash that we have the balance sheet to be able to -- in the position to be able to share some of that with our shareholders. Operator: The next question comes from Aymeric Poulain from Kepler Cheuvreux. Aymeric Poulain: To follow up on this question on factoring. I mean, for the GBP 600 million '29 target, should we assume a continued growth up to that point for factoring? And given the current exchange rate, why didn't you revise the exchange rate used for the 2029 free cash flow guidance? That would be my main question. Matthew Gregory: So I'll take those 2 first, and then maybe you can add to that if we need to. So yes, look, Aymeric, on the factoring side, look, we're very clear. We have these historic programs in line with the industry. They will grow in line with the programs. And therefore, everything else being equal, and we don't know what's going to -- what exactly is going to be happening in '29, you would expect the factoring -- the balance sheet factoring position to increase. Again, I come back to this point, driven by activity, deliveries and shipments to customers. In terms of the 2029 targets, you've asked a very specific question about foreign exchange. Look, Peter has been very clear that we've set out our 2029 targets with a very clear set of assumptions and basis beneath that. We are seeing ahead of us the civil ramp-up. We're seeing ahead of us the growth in the aftermarket as it pertains to us and more broadly. We're seeing the GTF turning to cash positive in 2028, and we're seeing the PMI issue being resolved, and we're seeing the end of restructuring of that. Those key assumptions are what drives our GBP 600 million target. Now yes, you've highlighted there is an element of headwinds as it relates to foreign exchange. I don't know what the foreign exchange rate can be in 2029. But there are also tailwinds related to that. We talked about defense. We talked about continuing growth of the aftermarket. So from our perspective, we are committed to delivering that GBP 600 million. we are committed that all the assumptions behind that are still absolutely valid and if not sort of slightly better. And that's why we keep on driving forward with GBP 600 million. Do you add anything to that, Peter? Peter Dilnot: No, I think -- I mean, the factoring has come up twice. I'd just make another point from an operational perspective, which is we're not entering any more programs. As we said, this is really about the timing of receivables. It's just a question of whether or not we get paid directly from the customer or accelerated via those programs, and it's a well-established piece. So I think actually guiding to what the factoring balance might be in 2029, frankly, I think, is more to do with the timing of shipments in that year. It's not a source of cash to us. It's just a function of how we operate and run the business. And I think that's really important in terms of factoring. It's not a source of cash. It's about the timing of the receivables. And then specifically on 2021, I think you said it very well. The underlying drivers are there. FX will move backwards and forwards, but there were also -- that being a headwind, there are also some tailwinds that we're not factoring in at this stage or putting in, should I say, it's probably better use the word, is -- and that is around potential upside around defense and also a stronger engine aftermarket. So rather than move that target every time we do a set of results or half year results, GBP 600 million is a target, you make your own assumptions around FX. We're doing what we need to do to deliver that number, and we'll hit it. Operator: Our next question comes from Ben Heelan with Bank of America. Benjamin Heelan: So the first question, Peter, back to the slide that you had talking about the growth drivers on cash through to 2029. Is there any kind of ranges that you can give us? What are the biggest drivers? How can we put a little bit more color around some of the building blocks and your guys confidence to that GBP 600 million? Is the big swing factor the EBITDA growth? Is it GTF inflection? Could you just give us a little bit more color around that? Second question, the range that you've given for free cash flow, the EUR 150 million to EUR 200 million. Could you just give us a little bit of color what means that you would end at the bottom of that range towards the top of that range? That would be great. Third question, I haven't talked about M&A. Is M&A on the agenda? Is that something that you're thinking about? I remember back at one of the Capital Markets Day, you talked a lot about repair and the potential to grow that business. Is that something that is on the agenda? Peter Dilnot: Great. Should we do the middle one first around -- because it's closer in, in 2026. Yes, absolutely. So look... Matthew Gregory: We, like everyone in our sector, provide a range of cash flow. And what I can be very clear about is our range is absolutely focused around the midpoint, which is GBP 175 million. So when you ask question, well, what can make it GBP 150 million, what can make it GBP 200 million? Well, the vast majority of that range is really around trading, okay? We give a range around our trading profitability, and that obviously largely would flow through to the cash flow. Also, we're a GBP 4 billion multinational aerospace company, aerospace and defense company that's very, very weighted towards the last quarter of the year, and you see that across the sector. So is there a possibility that a payment we're expecting of GBP 20 million arrives on the 3rd of January instead of the 29th of January? Yes. So that's why we put a range in. But what I can be absolutely clear is we are absolutely confident we'll deliver the GBP 175 million. There is potential for upside on that. And I think if you look at our track record, we have delivered our cash flow projections for the last 3, 4 years. So I think it's really about the midpoint 175 billion. Everybody will guide a bit of a range. We're not signaling anything negative around that. That's what everyone will do, but we're absolutely confident we can hit 175 million. Peter Dilnot: Good. So let's stay on the free cash, Ben. is in terms of the drivers, and as you say and as I described, there are really 3 core things here. The first is the growth in EBITDA from the production ramp-up. And I think we can see that just steadily increasing, and that will go together with the rates. It's not just, of course, linked to the civil side, but also defense as well. So that's going to be a relatively progressive straightforward line as we go forward linked. But of course, as that volume comes in, we get a very nice drop-through from that as well as we've already talked. And then the aftermarket returns, of course, what's happening here is as we've got new engines being shipped into and come into, should I say, the aftermarket phase, our share on those engines is greater. And so we're getting a greater proportion of cash returns from the RSPs. And as we know, the aftermarket has been particularly strong. But again, that's contributing through. And as we've seen with the legacy engines continuing to contribute as well. So that's going to be, again, steady progression. The one that is slightly sort of less linear, if you will, is the one around the GTF. And that is the 2 parts to that. One is the powder metallurgy issue, which we've guided to again for this year. It looks like actually Pratt are actually saying or RTX are saying it may drop away completely in 2027. We'll wait and see what they guide and we'll follow that. But that's certainly contained. So it's dropping away this year potentially to nothing, and it will certainly drop to nothing by '27. And then the swing factor is the GTF going from being cash absorbing in terms of the development costs that we're as a program team putting into that around the GTF advantage. That actually is then overtaken by the cash-generative shop visits. And that inflection point is in 2028. And that's important, of course, because it goes from being a cash drag, if you will, to a source of cash. And so what we're going to see here, and I think the first 2, you can actually model. The second one, obviously, is relatively commercially sensitive around the GTF. But what you can see is it's not a massive hockey stick. We've got continued cash flow progression over the next few years. And then as the GTF kicks in, it will then move us up to that GBP 600 million mark. So hopefully, that gives you some color as to the drivers. But again, it's going to be progressive from here. And everything that we see sitting here today, more confident than ever around the underlying drivers from this from a market, from an operational and from a delivery perspective. So that's it on the air. Do you want to add anything? Matthew Gregory: Yes. Can I just to be very clear about the powder metal situation, just to talk the absolute numbers. So when we talked before, we said that for '25, it will cost us GBP 70 million, '26, it would cost us GBP 70 million. And then '27, we said it would cost about GBP 25 million, and that would get us to the end of the program. What we're seeing now is that we're guiding for 2026 we're guiding at GBP 50 million. So it's GBP 20 million lower than we originally thought, and that's driven by the partners telling us that's what's going to happen. As Peter said, you'll all read the wording in the RTX and the MTU sort of announcements that they think it will be completed by the end of this year. The reality is for us because we're more of a junior partner, we get sort of the impact of that sort of later than they do. So we're still holding on to the potentially GBP 25 million in 2027. So we're not asking you to change your models for 2027. But it was very positive that by reducing in 2026, it seems to be sort of giving confidence that it's progressing very well. Peter Dilnot: Good. And then Ben, your last question which is around M&A. And I think what hopefully comes across clearly is that we've got a huge amount of value to unlock here in terms of profitable growth and cash generation from an organic basis. We've repositioned the business both on the airframe side and on the engine side. And we're now well placed to fulfill that potential and to deliver value organically. That said, anything that is consistent with that around those areas of opportunity and particularly around our technology, actually, I would say, if there's an opportunity to tuck in things that will accelerate what we are doing at a relatively small scale. And actually, it's below the radar, but we have done a software acquisition. We did a couple of years ago to support additive fabrication. We're advancing what we're doing in additive fabrication with advances in sort of forgings and castings, which is not particularly large scale, but they just reinforce our position here. That's within the range of what we do. We will do those things if it makes sense. But overall, this is an organic growth story. And I think the other point I would say is in terms of the shape of the portfolio now, we have, over the last few years, exited businesses that are noncore. We've got a business that's well placed and that we see strong demand growth for. And so from a disposal point of view, we're done on that basis as well. So the core of this is just delivering the promise. And of course, as we do that, the value will come back to our shareholders. Operator: The next question comes from Joe Orchard with Rothschild & Co. Redburn. Joseph Orchard: A couple, if I may. On airframes, airframe structures, the midpoint of your FY '26 guidance implies a margin of 8.6%, which I think is basically the landing spot that consensus was expecting for this year. Are you still confident that 2029 is the right time frame where you can get to your low teens margin target for that division? And then secondly, a couple of questions on the moving parts for free cash flow. On CapEx, there's a step down in H2 versus H1. Please, could you comment on why that was and whether that's a seasonal trend you expect to continue? And then also the GBP 28 million generated from the sale and leaseback, are there any other facilities in your footprint where you plan on doing this? Or was that very much a unique set of circumstances? Peter Dilnot: Joe, I'll get the first one and hand over to Matthew on the cash. Look, I think we sort of touched on this a bit already in terms of where we are on airframes, which is we've seen very good margin progression from where we were, which is a function of some volume growth and also our business improvement actions reading through. And so we have clearly continued to increase margins. If you look at the volume that we were expecting and you would apply that effectively to the performance that we've got, if you put the volume back in at a reasonable drop-through, we would actually be well ahead of our plans. So volume continues to be the constraint here. What we can see going forward is that production ramp-up will come. You've seen Airbus guide to the fact that's gone out a little bit in terms of their rate 75, for example, but those targets are absolutely out there, and we're growing into those. And as that volume comes through, we're very confident that the margins will as well. So volume is the missing ingredient if you will, from the story at the moment. But there's no question about demand. It's about satiating that. But again, we feel very confident and comfortable with our guidance of low teens for structures over time. And I'll just add into there because we do talk about Structures, Airframe, we do talk very much focused on the civil side, but we have, of course, got the defense business, which is growing well and outperforming as well. So that, again, underpins, if you will, the fact that this is a quality business that will continue to expand its margins and throw off cash. So I think hopefully that covers the sort of volume and confidence around the airframe side. Do you want to do the cash flow? Matthew Gregory: Yes I cover the cash flow. Yes. So on the CapEx side, there's nothing particular around the seasonality there. It's really in the first half, we just had some sort of carryover from the restructuring that was absolutely finalizing, particularly around the repair facility in California. But no, we are absolutely sort of pushing ahead with all the CapEx we need to. And as you can see, for '26, we've signaled that we're putting more into that. On the sale and leaseback, yes, I mean, they're all kind of unique circumstances when we consider them. So this particular one in Norway, it was a strange one where we actually owned half of it and leased half of it, and then we did the restructuring. So we're not using half of it as well. So we came together with the owner, and we were able to get sort of a beneficial lease to do that because we've got a reduced footprint. there probably are only a couple of other sites that we might consider that kind of thing. Look, again, we're trying to -- we're saying we're disciplined with capital, and we will be disciplined. There are a couple of other sites that have been affected by restructuring that we might look to either sell or sale and leaseback or do something with. But it's about sort of utilizing the asset base as best as possible. Operator: The next question comes from Marie-Ange Riggio with Morgan Stanley. Marie-Ange Riggio: I have a couple of questions on free cash flow and some on additive fabrication. The first one is more a clarification on GTF payments linked to Ben's question. Can you just help me to understand why we should not assume EUR 45 million impact in '27 instead of '25, even if you confirm the total cost of EUR 200 million. So that's the first one. The second one is, can you help us to understand how much engines will contribute to your free cash flow versus airframe, if not for '26 if you can give us a bit of color for '25. And lastly, on free cash flow, is there any reason to believe that with the new CFO coming in May and probably your softer progress than expected in '26 that your '29 guidance can be under review or is it at risk? I will start with free cash flow, and I will go to additive Fabrication after. Matthew Gregory: Sure. So on the GTF, as I said before, we are sort of led by the main partners on that. What we're saying is it will be within GBP 200 million, and we're trying sort of not to be very specific in writing. As I said, both MTU and RTX have said that the compensation payments will finish during 2026 and have told us that our contribution in '26 will be GBP 50 million, which is what we're guiding to. We -- because of the timing of that, we still think there will be some cost in 2027 to us. And therefore, the GBP 25 million is still valid. Now what that means is that overall, the cost will be about GBP 180 million from what we know now. And so that's the way that we're guiding you specifically. I'm afraid we don't give cash flow split between engines and airframes. So all we do say is that airframes is -- once the restructuring finishes, becomes a very sort of cash-generative business, normal cash generation and the non-VC elements of engines are also cash generative. But sorry, we don't give that split. I'm not going to comment on the new CFO. Maybe I don't know if you want to say... Peter Dilnot: I think Mario, let me answer your question in 2 way. So firstly, I'm going to take a bit of an issue with you saying our progress is not in line with expectations on cash. I would disagree with you there. We've delivered against our original target of GBP 100 million, which is a different FX rate. What we've delivered today is GBP 125 million. So I think that is meeting, I think, expectations or perhaps even beating them. But we then also are guiding towards the range, which is absolutely in line with -- so I think we're on track with our free cash flow projections from here. So that's the first thing. And then as it relates to 2029, let me be clear, the underlying drivers there in terms of all the things we just talked about, the production ramp-up, the earnings coming through, the RSPs, the stronger expected aftermarket and the GTF, all of those drivers are very much in play and working through as we'd expect. So we're nicely on track on those. We do have some FX headwinds, and you can plug that as you will. But we also have, frankly, some tailwinds, which is the defense market is stronger than we expected when we put out those targets last year. And also, we have the engines aftermarket, which is quite strong as well. So we're not going to move the target backwards and forwards on FX and these things each time we stand up and do results. What I can tell you is that we're absolutely confident about that GBP 600 million. Ross is going to be joining us very shortly. He's close to the business already and we'll get closer. And so I don't expect any great movements. We're here with a consistent plan, and it's on track. Marie-Ange Riggio: Perfect. Very clear. Just on additive fabrication, you announced last year that it will generate EUR 15 million of operating profit in 2029. But I can't no longer see it in your presentation. So sorry if I missed it. But my first question is, do you still confirm this contribution? And if yes, do you already have a contract signed giving you confidence on this? And what's the level of margin that we can expect from additive fabrication? Peter Dilnot: Marie, I'm pleased to talk about this because it's an important part of what we're doing. The first thing is, yes, we're absolutely on track with the GBP 50 million. It is part of the overall path to 2029. And do we have contracts in place? Yes. Are we working with a range of customers on building out the pipeline and the opportunities? Yes, we're talking to all the OEMs across this. We've obviously got some work we're doing with Pratt & Whitney specifically, and I won't go through them. It wouldn't be appropriate to go through, but we're talking to all the OEMs. And the reason for this, let me be clear, is what is gating production at the moment across the industry at large. One of the key things is forgings and castings. And this is a breakthrough technology, which can replace some of those structural forgings and castings by using our proprietary robotics and lasers to basically print parts in a proprietary way to effectively offset some of the need for forgings and castings. It won't replace the whole 20 billion-plus market, but absolutely, it's in demand. It's a good way of making products, but the most important thing about it is that it takes some pressure off a very constrained supply environment. It's in demand. Our challenge and our opportunity is to make sure we commercialize it, we bring it in and it's absolutely on track. There is more momentum about additive fabrication than there has been at any stage, partly because as we see, the market continues to be constrained in terms of engine production. So we commit to numbers. And one of the things we will do is we're going to do an investor teach-in together with this and our defense technology play during the course of 2026. Marie-Ange Riggio: And just on the level of margins, if I may. Peter Dilnot: I guess I understand why you're asking about that. I'm not going to give you a margin as you'd expect, because that would be inappropriate relative to our customers. What I can tell you it is not a cost-plus model. We're pricing this as an alternative to other methods. And therefore, you'd expect the margins to be reasonably healthy, but I'm not going to give the margins. We deliberately didn't. The other part is, I would say, some of it is straight drop-through because in some areas, what we're doing is instead of buying forgings and castings, what we're doing is we're actually making the material ourselves. So if we save the cost there, it's difficult to sort of call what the margin impact is. It's a GBP 50 million contribution to operating profit in 2029. Operator: There are no further questions at this time. And so I'll hand back to Peter for closing remarks. Peter Dilnot: Thanks very much for joining us this morning, and we look forward to talking to many of you in the days ahead. Thanks.
Edwin Ng: We will start our session now. Good morning, everyone. Thank you for joining our fourth quarter FY 2025 analyst briefing. A very warm welcome to our Yang Berbahagia Datuk Ir. Megat Jalaluddin Bin Megat Hassan, President and Chief Executive Officer of Tenaga Nasional Berhad; our Chief Financial Officer, Mr. Badrulhisyam bin Fauzi. I also extend a very warm welcome to each and every one of you joining us here today in this call. We also have 27 attendees joining us virtually via Webex. Today's session will be covered in 2 parts. Firstly, our CEO, Datuk Megat, will provide an overview of TNB's group strategy and outlook, followed by secondly, our CFO, Mr. Badrul, will present TNB's fourth quarter FY 2025 performance. We will then open for Q&A before we end it at 12:00 p.m. With that, I'm pleased to invite Datuk Ir. Megat Jalaluddin Megat Hassan to kick off our session for today. Thank you. Megat Bin Megat Hassan: Thank you, Edwin. [Foreign Language] and a very good morning to everyone. Once again, thank you for joining us today in this analyst briefing for the financial results 2025 for Tenaga Nasional. For mostly my analysts, I would like to say [Foreign Language] and hopefully, this Ramadan will be better compared to the previous Ramadan. So coming back to the performance of Tenaga Nasional, I'm pleased to share some of the key highlights for the financial year 2025. Despite a year of both challenges and opportunities, TNB delivered resilient performance in 2025, recording a core profit adjusted for forex translation and MFRS 16 of equivalent to MYR 4.8 billion compared to around MYR 4.2 billion in financial year 2024, reflecting the underlying strength of our core business and the effectiveness of our ongoing initiative to drive efficiency and sustainable growth. This positive business growth has allowed us to continue to reward our shareholders at the higher end of our dividend policy, dividend payout of 65.6% equivalent to a total dividend of MYR 0.53 per share for the year 2025. The stronger financial 2025 performance was driven by improved performance across all our 4 business pillars. The first pillar is under generation as part of our strategy to deliver clean generation. Genco performance improved to the expectations based on the turnaround program that we conducted over the last 2 years with higher core PAT of MYR 315 million. This was supported by stronger operational efficiency as reflected by an improved equivalent availability factor of 87.8%, competitively close to the max that we want to target. Second, under develop energy network, we deployed MYR 12 billion in regulated CapEx comprises of MYR 10.3 billion in base CapEx, and we have started to use the portion of the contingency CapEx of MYR 1.7 billion. This intensified investment have strengthened grid resilience, supporting the demand growth for the country and facilitated renewable energy integration under RP4. Third, under dynamic energy solution, looking at the customer space for the year 2025, there are now 5,719 EV charge points in the ecosystem, contributing to MYR 7.1 million in revenue. During the year, at the same time, Tenaga Nasional through Electron brands installed 119 new TNB charge points, bringing the total cumulative for TNB Electron of 256 TNB charge points in our EV network. This is to reinforce our commitment and our belief to support the country growing EV infrastructure. This is also being seen by the increase of the registration of the EV cars in the market, and it is driven primarily by Proton. As for data centers, we have 35 projects in the system with a total maximum demand of 4.5 gigawatts, the agreed ESA of 4.5 gigawatts, contributing to 148% growth year-on-year. In addition, we recorded the highest customer satisfaction index in TNB history with a score of 90% or 9 out of 10. This was largely driven by the improved residential sentiment following the new tariff structure that is being introduced by the government and also the operational efficiency with fewer repetitive complaints and outage-related calls. So this is one area that we are happy most because on top of the business performance, we are also getting the good feedback from our customers with respect to our services. Lastly, under driving regulatory evolution, the IBR framework remained upheld, providing earnings stability and regulatory clarity. Importantly, we have secured revenue recognition for contingent CapEx similar as base CapEx, allowing us to recognize revenue in the same year the expenditure is incurred effective from 2025. So this is part of the agreement that we have with the Energy Commission and how the recognition of the contingent CapEx should be done. So this reduced regulatory lags and enhance our earnings visibility. The strengthened AFA mechanism, which was introduced recently, enable more immediate cost recovery from 6 months to 1 month, improving the cash flow of Tenaga and the working capital efficiency. Throughout the period, we also see that the -- most of the AFA mechanism is actually on the negative, which is a reflection of the tariff structure that we currently have. Further, this enhancement reinforce the resilience of our regulated business and support sustainable shareholder return. Following our resilient financial performance, strong governance and ESG discipline remain fundamental enablers of sustainable value creation. In other words, apart from business performance, we look at how Tenaga Nasional as a company address our sustainability agenda. In financial year 2025, TNB was recognized at the National Corporate Governance and Sustainability Award 2025, where we received the Overall Excellence Award, placing us, TNB, among the top 10 companies as well as the Industry Excellence Award in the utilities category. This recognition reflects the strength of our governance framework and our continued commitment to transparency, accountability and responsible leadership. From a broader reputational perspective, our corporate reputation index improved to 88% compared to 80% previously, indicating strengthening of stakeholder confidence to Tenaga Nasional. As disclosed in last quarter, Brand Finance ranked TNB as second strongest utility brand globally with a AAA brand strength rating, underscoring the resilience of our brand and the credibility of our long-term strategy, especially in this energy transition environment. In addition, we were honored at The Edge Billion Ringgit Club Awards 2025, receiving recognition for delivering the highest return to shareholders over the 3-year period in the super cap category. This reinforced our disciplined capital management and our focus on sustainable shareholder value. Beyond this recognition, we have also recorded notable improvement in our ESG performance. We improved our FTSE4Good score from 3 star to 4 star, and 4 star is actually the highest ranking in the FTSE4Good, which is recognized by Bursa Malaysia. Our FTSE Russell rating improved to 4 from 3.5 previously. Our Sustainalytics risk score improved to 26.3 transitioning from high risk to medium risk. And we also maintained our MSCI rating of A and our CDP rating of C. This improvement reflects the consistency of our governance practices, disciplined execution of our energy transition and a strengthened risk management framework. Moving on to our key achievements across the 3 strategic pillars in 2025. I would like to share that under Deliver Clean generation, we made a solid progress across gas, solar and battery storage. For gas under RFP Category 2, new generation capacity, we ordered with 1,400 for the new Paka combined gas cycle -- combined cycle gas turbine power plant with a target COD by December 2028. This represents a significant milestone for Tenaga to strengthen the Malaysia medium-term security of supply and reflect the competitiveness of the generation electricity price that TNB as the leading energy company can offer to the Malaysian market. As previously announced in quarter 3 results, we also secured extension under Category 1 totaling 1,262 megawatts across 3 gas power stations, reinforcing system reliability for the country. So we are very positive with respect to the pipeline growth of generation sector, while we address the supply and demand for the country. Under battery storage, the battery energy storage system at Lahad Datu, Sabah in which Tenaga Nasional has a stake in it was successfully achieved COD in August 2025, strengthening the grid stability and supporting the renewable integration for the Sabah grid. Moving on to the land-based solar. First, the large-scale Solar 5 project, LLS Sabah, commenced construction in November 2025. And as far as the planned COD, it is very much on time. Under the Corporate Green Power Programme, CGPP, all 3 sites that are under construction are progressing well at about 95% completion and remain on track to achieve COD in this first quarter 2026. And finally, for the centralized solar park, we have signed principal terms of bilateral energy supply agreement with one of the leading data centers in the country, DayOne Data Center, a strong indicator of growing green energy demand, both from corporate customers. And this is also enabling the CRESS system for Tenaga. And lastly, under hydro, the Nenggiri hydro project reached 88% (sic) [ 68% ] completion, including the installation of 400-tonne overhead crane, the largest capacity electric overhead traveling crane. The Sungai Perak Hydro Life Extension Programme has achieved 28% overall progress with major refurbishment work completed. For the Kenyir hybrid hydro floating solar project, we have reached 70% of predevelopment completion and successfully concluded the EPCC tender evaluation. So once again, we are also seeing that as far as the [ domestic ] generation on the RE front, everything are going as planned. While we continue to strengthen our domestic portfolio, we continue to advance our international energy pipeline and expand our global footprint, particularly in the United Kingdom and Australia. I'm glad to inform that in the United Kingdom, our 102-megawatt solar greenfield development projects at Eastfield equivalent to 35-megawatt peak and Bunkers Hill equivalent to 67-megawatt peak successfully achieved COD in July 2025 and has started the generation of income for Vantage Solar in the U.K. This marks an important milestone as this asset begin contributing to the current international earning base that we already have. In Australia, momentum remain encouraging. There are 3 main projects that we are looking at. The first one is at Dinawan Energy Hub, 1.3 gigawatt development at the border of New South Wales. We were awarded approximately 1 gig access rights while 357-megawatt Dinawan Wind Farm Stage 1 successfully secured the Australian government capacity investment scheme in October 2025, providing revenue visibility and mark the start of the project over there in New South Wales. For Walter Creek solar project equivalent to 700 megawatt -- 710-megawatt development, we have executed connection process agreement with Transgrid, meaning that we are executing the process to be connected to the grid and successfully submitted capacity investment scheme bid to secure the revenue support, meaning that both technical and the commercial front are very much within the progress. Meanwhile, the third site that we are working on at the Mallee Wind Farm, 400 megawatt, we have completed ecology surveys for the alternative connection route and secured the necessary land easement for the interconnection line. This step support the alternative grid connection strategy outside the ROW East zone. Bear in mind that based on our experience, the connectivity for the RE to the grid for this Australian market, it may take some time. But once it is very much connected, then the revenue is also quite consistent and secured. So overall, our international portfolio continues to progress steadily, reinforcing our long-term growth pipeline beyond our Malaysian shore. Next, we move to investment into the grid. Under our second strategic pillar, develop energy transition network, we delivered year 1 RP4 with a disciplined and efficient regulated CapEx deployment. Total regulated CapEx utilization reached MYR 12 billion against the original budget of -- budget plan of MYR 7.8 billion, exceeding 100% of our 2025 target budget. This investment was strategically allocated across 3 priorities. So we invest MYR 5.4 billion to maintain security of supply, MYR 5.3 billion to support demand growth and MYR 1.3 billion for the category of energy transition project. Achievement for the key projects. First, we significantly outperformed our smart meter target, installing over 1 million units in 2025 alone, bringing the total installation to about 5.6 million units, now covering more than half of our customer base. As for distribution automation initiative, we expanded deployment to over 5,100 substations during the year, bringing the total to over 38,000 substations in the system. We have also fully completed 500 kV overhead line Ayer Tawar to Bentong South and Lenggeng project with a total of 854 transmission towers and around 325 kilometers transmission length, reinforcing the backbone of the 500 kV national grid system. Meanwhile, our 100-megawatt 400-megawatt hour battery energy storage system pilot project at Santong is progressing well, reaching 85% completion. The next dimension of our strategy is regional integration. Recently, we signed the Tripartite Energy Wheeling Agreement Phase 2 under the Laos, Thailand, Malaysia, Singapore power integration project or known as LTMS-PIP version 2.0. This marks another important milestone in advancing ASEAN Power Grid and strengthening cross-border energy cooperation. Under this arrangement, Malaysia plays 2 key roles. First, TNB supply RE energy up to 100 megawatts from Laos to Singapore with the single buyer determining and collecting the energy charges. Second, TNB acts as the wheeler transmitting the energy through Peninsula Malaysia to Singapore. For 2025, the total energy export under this arrangement amounted to approximately 10.5 gigawatt hour reinforcing Malaysia's evolving role as the regional energy hub. Complementing this, we have also operationalized Energy Exchange Malaysia ENEGEM with a total energy export of 500.8 gigawatts to Singapore in 2025. This represents a significant national achievement in strengthening Malaysia position as RE leader in Southeast Asia through a transparent and competitive bidding commercial mechanism. Beyond commercial values, this regional interconnection enhances flexibility, supports cross-border RE integration and strengthens long-term energy security across the region. We will continue working closely with our regional partners to deepen cooperation and expand business opportunity under the ASEAN Power Grid framework. Moving to our third strategic pillar, dynamic energy solution. Electricity demands continue to grow resiliently in 2025. Total units sold reached 133,895 gigawatt hour, reflecting a sustained demand momentum. This growth is largely underpinned by commercial sector, which account 38% of the total units sold. Commercial demand grew 10% year-on-year, led primarily by data centers, which contribute 7.1%, followed by subsector of malls, business and accommodation services at 2.4% and other retailer sectors contributing 2.5%. In terms of sales contributions, malls, business and accommodation services made up 80% of the total units sold, other subsectors contributing about 16%, while data centers account for 4% of the total sales in financial year 2025. Having said that, importantly, data center continue to anchor structural demand growth. As for 2025, we have 35 projects in the system with a total maximum demand of around 4.5 gigawatts and cumulative maximum demand in the pipeline of about 7.5 gigawatts, underscoring Malaysia's growing position as digital investment hub. From a load utilization perspective, we reached 850 megawatts in December 2025, reflecting the steady ramp-up of operational facilities for data centers. Overall, demand fundamentals remain strong, supported by structural commercial growth and electrification trend. Alongside the robust demand growth, we're also seeing positive momentum across our customer-focused energy transition initiative, mainly under the EV ecosystem. We continue to expand our charging network with 256 cumulative charge points installed, including adding 190 in the year 2025 alone. Under the Green Lane supply connection initiative for EV charge point operator, progress remains encouraging. To date, we have commissioned approximately 32 megawatts of supply connection and in 2025 alone, completed 110 projects, representing around 14 megawatts of maximum demand. This demonstrates our ability to facilitate expedited connection, particularly for high-growth sector. From a financial perspective, our EV charging ecosystem generated about, as mentioned, MYR 7.1 million in revenue, representing an approximately 88% year-on-year increase in which around MYR 2.7 million come from TNB-owned charge points, reflecting steady adoption and increasing utilization of our infrastructure. Moving to solar rooftop through GSPARX. Since inception in 2019, we have secured 3,125 projects, representing 536 megawatt peak of secured capacity. As of December 2025, we have installed 216 megawatt peak, generating approximately MYR 100 million in revenue for 2025. We continue to see strong participation from key customer segments such as government data centers and construction for the solar rooftop. On energy efficiency, myTNB app is now adapted by more than 8 million customers, representing approximately 75% of our customer base. Of this, more than 2.6 million users have subscribed to myTNB Energy Budget feature, collectively helping to save 106 gigawatt hour of energy and avoid 74,000 equivalent tons of carbon emission as of December 2025. Under the Time of Use scheme or TOU scheme that recently introduced, adoption continued to show encouraging progress. As at December 2025, approximately 102,000 customers are actively benefiting from the scheme by optimizing their electricity usage during off-peak periods. This is further supported by the streamlined application process via myTNB app, which is now available, enabling seamless participation and a greater customer accessibility. Overall, these initiatives support cost optimization for the customers while enhancing load management and overall system efficiency. We believe that TOU scheme will be a hit among our customers in time to come. With that, I will now pass to our CFO, Encik Badrul, to provide a detailed overview of our financial year 2025 financial performance. Please, Badrul. Badrulhisyam bin Fauzi: Thank you, Datuk, and good morning, everyone. So good to see so many of you this morning, and we have now close to 60 people online as well. So I hope you're happy with the numbers that you have seen so far. All right. So let me start by saying that our performance this year, we are showing stronger financial performance. But most importantly, this is actually driven by regulated business as well as effective capital management. So if you look at across the 3 financial metrics, revenue, EBITDA and PAT, all 3 across the line are showing positive year-on-year growth. And for revenue, specifically for 2025, actually increased by 19.4% compared to previous year, mainly driven by higher electricity sales. So implementation of cost reflective RP4 approved tariff actually is supporting our revenue and demonstrating continued stability of our regulated business. But most importantly, if you look at EBITDA, EBITDA has improved, supported, of course, by the higher revenue, but EBITDA increased around 2.8% year-on-year to MYR 20.5 billion already this year. And most importantly, EBITDA margin actually strengthened a little bit to 31.6%. Obviously, this is showing improved efficiency as well as operational improvement that we are pursuing across the company. So to us, this is important because it shows that all our efforts to improve efficiency are continuing to progress. This is, of course, paired together with cost management as well as strong operational improvement as well. So this brings us to the profit line where the profit grew mainly because of stable operational performance as well as all these cost improvement initiatives that we have actually put into the company. So our core profit, adjusting for forex translation and MFRS 16 stood at MYR 4 769 billion So that is a 14.7% increase year-on-year compared to MYR 4.157 billion in the same period last year. So based on that, I think it's quite clear that if you look at our overall performance, operational performance is being supported as well by lower net finance costs as well as forex movement, which has actually provided additional uplift to our numbers. However, most importantly, core operation remained the main driver of our performance for 2025. So with that, the numbers for 2025, obviously, is on track for us to continue growing, supported by resilient operations and prudent financial management to make sure that we continue to deliver this sustainable performance, not just for '25, but for the many years going ahead for the next many years. So next one, I think you will be able to see that our group earnings is supported by 2 important factors. The first one is improved generation performance as well as, of course, our world-class network performance. So if you dive into more detail, the group earnings are contributed by solid technical performance, which is now supported by much improved plant performance and world-class network performance across, of course, our transmission and distribution system. So as far as generation is concerned, the EAF at 87.8% in 2025 is a marked improvement compared to 83% that we recorded same period last year. So again, this improvement really reflects the overall plant performance improvement because of the turnaround initiative that we have put in place and starting to bear fruit now. So this is something that is very close to our heart. Definitely, we remain committed to maintain this high availability as well as operational excellence to make sure continued financial performance across Genco. In our transmission, our system minutes for 2025 is at 0.15 minutes, which is well below even our own internal threshold of actually 1.5 minutes. This, again, underscores our continued performance to make sure that we have a highly reliable as well as stable transmission network. So on the distribution side, SAIDI for 2025 improved to 46.93 minutes, again, well below our internal threshold of 48 minutes. So this is important because the strength of our world-class network continues to safeguard the earnings of our regulated business, but most importantly, as well ensuring better services for our consumers. That's how we have been able to achieve just now customer satisfaction score of 9 out of 10. So it is now being demonstrated not just on the network side, but also being felt by our customers as well. So if we move along on the capital management side, you'll be able to see that stronger collection has actually reduced receivables on our book. And we have also demonstrated in 2025 that we have optimized capital deployment to make sure that we have a healthier cash flow position. So if you look at our trade receivables, it started the year at MYR 4.4 billion, and we ended the year actually at MYR 3.9 billion. So for those who have been tracking us for a long time, you have not seen a figure below MYR 4 billion for quite a while. So this is something that we are very proud of. And the fact that we have also improved the collection period beginning of the year at around 25, we are now ending the year with 23 days as of December. So when we drill down further into what we have actually achieved, of course, there are reasonable explanation for this. This is the outcome of what we are putting in place and collection, in particular, has been identified actually the outcomes of 3 main initiatives that we are putting in place. The first one is the fact that we have now established a dedicated task force for our high-voltage and medium-voltage customers with dedicated personalized account manager to actually make sure that they are taken care of for all their needs. But of course, most importantly, they must also pay their bills, right? So that's why as part of the overall process, they now become a lot more personalized customer. So this is our value add to our customers. Second one, over the years, we have also -- and this year intensified our push to promote our customer to move into payment channel of direct debit. So this will make sure that, obviously, on time, the payments are made. So that's helped push the collection into much better territories. And lastly, item #3 to all of us here. Datuk mentioned just now, we have 8 million customers on myTNB app. We need to check all your phones to make sure you are on it. And if you are on it, you will notice actually this year, we have introduced a new function because we have now predue notice of payment. So what we're seeing before this is all of you, we know you want to pay on time, but sometimes life get in the way, you get delayed, you forget about it. That's why you're not paying. So now we're helping you with one more step. We make you predue notice so that you know that we can nudge you to pay on time. So that actually has helped us to make sure that the collection across not just the major customers, but all our accounts become more timely. So most importantly, yes, that's on the receivable and collection side. But if you look at our capital allocation side as well, 2025, we have demonstrated very strong operating cash flow. And this is, of course, the outcome as well from our more optimized capital deployment model. So during the year Datuk Megat mentioned just now, we have deployed close to MYR 15 billion in CapEx, and this is reflecting our continued investment in regulated network expansion, renewable capacity growth as well as system resilience. So this is important because for us, the ability to scale up investment was undertaken while still maintaining a balanced and robust balance sheet position. So at the same time, you will notice that we are actively optimizing our cost of borrowing, where net cost of borrowing actually improved to 4.63% as opposed to 4.83% in 2024. So this reflects a proactive liability management, improved our credit positioning and favorable funding outcome being supported by all the banks working with us. So it is important for us to reiterate the point that, yes, capital allocation is very important to us, and we are making sure that it's balanced to support our growth of investment while preserving our financial flexibility and maintaining balance sheet strength. So if we move along to more detail of RP4 CapEx, you will notice that we continue to have -- continue to deliver robust regulated CapEx spending. And during the year, most importantly as well, we have actually finalized contingent CapEx recognition, which is a key factor that we have been working towards at the end of the year. So just to take a step back, and if you look at our total CapEx under RP4 for '25 to '27, total was supposed to be MYR 42.82 billion, out of which MYR 26.55 billion would be base CapEx and the balance of MYR 16.27 billion being contingent CapEx. Where we stand today, based on the progress of the project and what we know, we believe that we expect to utilize approximately 80% to 85% of the contingent CapEx under the current regulatory period, of course, subject to project approval as well as demand requirements. You will notice that over the last few quarters, that number was 70%. So now it has become clearer to us, we believe that will be around 80% to 85%. And some of the projects, of course, we are exploring as well to expedite or push for other projects to be included inside that. So for FY 2025, we actually achieved regulated CapEx utilization of, as mentioned by Datuk Megat just now MYR 12 billion, out of which MYR 10.3 billion are base CapEx and MYR 1.7 billion contingent CapEx. So this represents around 30% utilization of total RP4 allowed in year 1. And this is important for us because this shows that we have been able to execute this project and scale up our investment. So if you recall, in 2024, the final year of RP3, we delivered CapEx of MYR 8.8 billion. Yes, it's massive, but scaling up from MYR 8.8 billion to MYR 12 billion over 1 year. So that's something that we have demonstrated. So I think this is the part where we want to assure you that as far as the RP4 numbers are concerned, these are real and we are able to operationally execute these investments. So that's why if you look at our CapEx going ahead, we expect that for 2026, that number will be around MYR 13 billion, and that will grow to further to around MYR 15 billion by 2027. So if you do the math, MYR 12 billion in 2025, MYR 13 billion this year, MYR 15 billion next year, that will be around MYR 40 billion. That's because the guidance on the contingent CapEx that we put there, that's around 80% to 85%. But of course, we're not resting on our laurels. I have put there as well those dotted bars to show that there are potentially uplift to that number. If we are able to push for a little bit more approvals on the contingent CapEx and hopefully riding on stronger demand, then subject to regulatory approval, we believe that we should be able to optimize that number to the amount that is being approved under RP4. So I just want to conclude this the fact that, yes, we talk about base and contingent CapEx. And before this, we have not been able to recognize the revenue from contingent CapEx. But now it's very clear in our financial statement, you have seen that whatever contingent CapEx that we spent this year, that is already being recognized in our financial statement in the same year. So it's being treated the same as base CapEx as far as recognition is concerned. So this hopefully has reduced one of your key overhang regulatory concerns. But most importantly, this will enable you to have a clear visibility of our earnings going forward. So for us, regulated CapEx development, we are making sure that those are, of course, in line with the approved allowance. But most importantly, this will support the security of supply and as well as support the demand growth and energy transition initiatives. And before I pass back to Datuk Megat, we have this final slide. Hopefully, you have seen the numbers. So for us, this is a reflection of our ability to continue stable dividend payout and most importantly, reflect our commitment to rewarding our shareholders. Some of the major shareholders' reps are here. Hopefully, you're happy with that. But at the same time, we continue to maintain prudent capital management. So if you look at the philosophy behind our payment this year, you have seen, yes, I've been talking about good performance in 2025. So for us, this is a reflection that we performed better in 2025. So we continue to reward our shareholders better as well. So as far as dividend is concerned, we already paid 25% interim beginning of the year. And now we are declaring a 28th final dividend, bringing the total to MYR 0.53. And if you compare that against the last year's payment of MYR 0.51, and it's also reflecting the trend of our payment, growing the dividend from MYR 0.40 in 2021 to where it is today, MYR 0.53. So total dividend payout this year amount to MYR 3.1 billion, and we are pleased to commit that, yes, you are seeing our dividend policy here, 30% to 60%, which we, of course, will continue honoring. But I think most importantly as well, you should be rest assured that we will try our best to make sure that we sustain the current trend of dividend payment going forward, including for this year. So with that, I'll pass the mic back to Datuk Megat. Thank you, Datuk. Megat Bin Megat Hassan: Thank you very much, CFO, Badrul. So this is Ramadan. I think I'm probably start to lose some of the voices that I have. So pardon me. So looking ahead, the medium- to long-term outlook of Tenaga. At the core of our strategy remains the energy transition journey that we have. As you can see here, our long-term aspiration is clear to achieve net zero emission by 2035, in line with the Malaysia National Energy Transition road map, which target 70% RE capacity by 2050. Realizing this ambition, we require sustained and disciplined investment. So under the regulatory period 4, we have already secured and locked in our CapEx commitment up to 2027, providing visibility and execution certainty for the near term. So this is about the phase of delivery of the regulated CapEx. However, achieving the 70% RE capacity target will require continued acceleration beyond RP4, both in the generation and the grid infrastructure. So towards this objective, I think TNB now is looking forward to what the outlook can be with respect to RP5. So more current to that is to support the current pathway. We are intensifying our efforts across all the 3 business pillars. The first, deliver clean generation. Our priority is to accelerate generation decarbonization in a responsible and structured manner. First, we will decarbonize our thermal fleet through optimization and fuel transition, including fuel coal blending and while maintaining system reliability and security of supply. Second, we will scale RE energy capacity in line with the national energy transition priorities. Renewable expansion remain a core travel towards the 70% RE target by 2050. And we believe the CRESS framework provide those opportunities for a company like Tenaga. Third, we will advance low-carbon technologies to support firm and dispatchable clean power, looking at the latest technology such as hydrogen. And fourth, we will selectively expand our RE portfolio across priority markets with disciplined capital allocation, especially looking at the international expansion, ensuring sustainable return while supporting our decarbonization goal. Moving to our second pillar, develop energy transition network. As RE penetration increases, system complexity will also rise. The grid must therefore evolve to become more flexible, digitalized and decentralized, supported by distributed energy resources or DER environment. We are centering advanced system planning, grid flexibility solution and higher energy storage deployment to safeguard the grid reliability. Regional integration will also play a growing role as we expand cross-border link under APG initiative, positioning Malaysia as the regional hub for Southeast Asia. Ultimately, the grid will evolve from a passive transmission network as we have seen in the past from a carrier into an intelligent, flexible and interconnected platform that enables Malaysia low-carbon transition. And lastly, under dynamic energy solutions, electrification will continue to drive demand growth over the next decade. BEV adoption is expected to increase significantly, boosting electricity demand while supporting national decarbonization target. At the same time, we are building an integrated ecosystem, combining the digital platform, billing solution, rooftop solar, energy storage, green energy offering, which is very much part of the customer domain. At the center of this ecosystem is the empowered customer of the future. We see customers evolving into omnisumers, customers who not only consume electricity, but also generate, store and actively manage their energy usage as part of the whole energy participation for the customer. Through digital platforms such as myTNB and smart metering in which we now want to move further with the next-generation solution for the customer, we are unlocking new growth opportunity while strengthening customer engagement. So please be mindful, there will be a lot more stories with respect to our customer journey in the future. Having outlined our medium- to long-term priorities, let me now turn to the short-term 2026 outlook and targets. In 2026, we will continue to drive disciplined execution across the 3 pillars. So 2026 is the delivery and execution year, accelerating growth while progressing towards our net zero ambition. So part of delivery under clean generation, first is the Nenggiri Hydro project is targeted to reach 93% completion by 2026 and with COD targeted in the second quarter 2024 (sic) [ second quarter 2027 ] . Under the Sungai Perak Hydro Life Extension Programme, we are targeting to sign the new PPA for the Chenderoh unit by the 1st December 2026, meaning the COD will follow suit after the signing of the PPA. The hybrid hydro floating solar at Kenyir is progressing through regulatory approval and finalization of the EPCC award. The Corporate Green Power Programme to achieve COD in first quarter 2026, while the remaining solar and wind projects are targeted to achieve financial close financial investment decision within this year. In addition, we will continue advancing the newly awarded Paka combined cycle gas turbine with financial close targeted by the second quarter of 2026. Under develop energy transition network, we are expected to utilize the base CapEx of around MYR 9.3 billion for the year 2026 with a contingent CapEx of MYR 3.7 billion, a total of about MYR 13 billion, subject to regulatory approval. Execution remains the key. In 2026, we target installation of 1 million smart meters, another 1 million smart meters, distribution automation upgrade of more than 2,000 substations and scheduled to achieve COD for our pilot energy battery storage system at Santong by April this year. We will also continue discussion and settling regional interconnection under the ASEAN Power Grid with estimated 625 megawatts of ongoing available capacity for energy trading. Under dynamic energy solutions, our 2026 focus is clear: To scale electrification, expand customer solution and capture sustainable growth opportunities. So first, under EV, we aim to deploy additional 250 charge points in 2026, further expanding the EV ecosystem. Secondly, to support the industry, we target to commission 28 megawatts of completed connections, supported by the 461 applications in pre-consultation, representing 128 megawatts of potential demand for 2026. Cumulatively, connected capacity is estimated to increase 3.3x, and it is projected to reach 60 megawatts by the year 2026. So 60 megawatts is now the expected target, and it is almost the size of a single machine as far as generation is concerned. Through GSPARX, we aim to secure additional 100-megawatt peak of capacity on a yearly basis. And under energy efficiency, we want to continue to scale digital engagement and solution via myTNB platform with the strong adoption of energy budget, and we're also targeting another 150,000 to 200,000 new customers application to TOU scheme, reinforcing our smart meter installation and providing the customer with the empowerment of their energy usage. Overall, this initiative enhance customer stickiness and position TNB to capture growth from electrification and energy transition. So looking forward for 2026 guidance, we anticipate the projected electricity demand remain in line with the GDP growth between 4% to 4.5%. So in terms of our group CapEx, we plan to invest a total of MYR 18 million (sic) [ MYR 18 billion ] this year, approximately MYR 13 billion from the regulated business and another MYR 5 billion on the nonregulated business for the projects that we have described above. Our investment remain aligned with national priorities, strengthening the grid, supporting demand growth and accelerating Malaysia's energy transition. We remain committed to delivering projects that drive growth and sustainable return. This is where our capital allocation, once again, will play a vital role with respect to TNB growth. At the same time, we maintain prudent capital management and optimize our capital structure through disciplined funding strategies, which I believe as well as the KPI for the CFO in 2026. Delivering value to our shareholders. As mentioned and reiterated many times by CFO in his presentation, we expect to sustain our current trend of dividend payment in line with our dividend policy, whereby in the past, historically, we would like to deliver at the upper hand or at the upper range of the dividend policy that we have established 10 years ago, of course, subject to the performance and financial situation of Tenaga Nasional. On sustainable growth, ultimately, our focus on ensuring business growth while supporting Malaysia and NETR aspiration and strengthening our position as a leading provider of sustainable energy solutions. We will continue to position TNB as a leading provider of sustainable and reliable energy solution, creating value for our customers, communities, shareholders and not to forget our employees. Edwin Ng: Thank you, Datuk Megat and Mr. Badrul for your presentations just now. Let us now transition to the Q&A session. We will begin by taking questions from the floor before we allow participants from Webex to ask their questions. With that, I open the floor for questions. Please feel free to raise your hand and our staff will pass you the microphone so that you can ask your questions. Kindly introduce yourself and share your questions. Megat Bin Megat Hassan: I hope everybody will be easy on us this morning since it is Ramadan. Daniel Wong: Daniel from Hong Leong. I have 2 questions. Firstly is on the contingent CapEx. You mentioned just now you guys start to recognize this revenue on the contingent CapEx. Just want to know what is the mechanism for this contingent CapEx, the return? And then from where do you get this revenue from the specific commercial users or from overall public spread over? Second question is on the tax. Can you give us an update on what are we expecting on the tax? How much you can claim? And then over how many years can you use on the ITA or this? Megat Bin Megat Hassan: Okay. I'll give a try for the first question. So maybe CFO can add. So with respect to the contingent CapEx, as mentioned, we understand that what we are now going to deliver is actually a combination of base and contingent CapEx. So what is important for us is that we have gotten some approval for the contingent CapEx. So meaning that we can start the using the contingent CapEx even in the first year of the implementation, whereas the expectation will be that in the third year of the implementation, this is where the contingent CapEx will be heavily used and progressively we want to deliver the base CapEx on a yearly basis. But definitely, the contingent CapEx is supposed to be or planned to be heavy in the third year. So the good thing is that the revenue recognition is actually being -- we can recognize it as we use it in the similar concept as the base CapEx. So with that, the meaning is that the base and the contingent CapEx, one approval is gotten, it actually can be implemented in any year at any time with a consistent revenue recognition. So what will be the return for this contingent CapEx? It is the same as the base CapEx, which is at 7.3%. Maybe CFO, do you want to add that? Badrulhisyam bin Fauzi: Maybe if I just want to add is the fact that Daniel was asking whether it's specific revenue, it's not. Actually, base and contingent CapEx are considered the same as regulated asset base. So the return are looked at as overall. So it's just by the name of it in terms of approval of the project is either base or contingent. You will recall that when we talked about contingent CapEx in the past, we list around 90-plus projects with specific projects preapproved. But of course, there is a process where before we implement it, we need to get it approved so that we can recognize the revenue recognition. But it's the same thing. That's why we keep reiterating that base and contingent CapEx differs only on the approval process. As far as the return, it's the same 7.3% and revenue is the entire regulated asset base overall. So we don't differentiate between the 2. And Datuk, do you want to take the second question as well? Megat Bin Megat Hassan: We will start to give some answers and CFO can elaborate further because it's all the numbers game, right? So I think with respect to the tax issue that was overhang for probably a number of years, more than 20 years, I think the position of Tenaga, first, I think we are glad that this overhang has been removed with the key decisions. So the key decisions that, yes, we received a fair and reasonable portion of the requested amount of the request for the tax, what was it, incentive. But at the same time, at this moment in time, we are not at the liberty to disclose specifically the numbers. So nevertheless, I think the investment allowance credit as we understand it, which is the reasonable portion that we have gotten will be utilized and spread over a similar period of the tax allowance assessment. So that is the concept that we printed. And if you probably look at the numbers in the financial statement, probably that will become visible. Badrulhisyam bin Fauzi: I think that covered it all already. I think if anything, just you would notice that in third quarter, we guided that our effective tax rate would be high. At that time, it was at 29%. And we did say we are managing everything that we can, and we were guiding you that we will end up probably somewhere around 26%, 27%. But you have seen the number yesterday, effective tax rate would be around 22.8%. So that explained in itself how much we have utilized this year. And you obviously I'm sure that we are utilizing it. But as mentioned earlier, the incentive is no longer tied to future CapEx, but the CapEx that we have done in the past, but there are conditions for us before we can utilize it. So that's why we are only able to utilize whatever that is being utilized for the year that is being reported. That's probably as much as we can say. Lee Chong: Lee Len from UOB. Sorry, Badrul, to put you on a spot. But does it mean that the adjustments for ETR will only be done in every fourth quarter? Or how should we look at this? Badrulhisyam bin Fauzi: Yes. We don't adjust PTR, Lee Len, to begin with, obviously, it's the outcome of the bottom-up tax payable across the group. But in the 2025, we only got the approval in November last year. So that's why at that time, we said we were still finalizing the impact of the assessment. So that's why in quarter 4, tax is payable once a year only. So that's why by the end of quarter 4, we finalized the calculation for the full year. So going forward, obviously, we will be accruing and estimating the amount so that it will be spread out in the more stable numbers across the quarters. So it will not be year-end a bigger impact like this. Lee Chong: Yes, that will be much better. Maybe just another question for me. Are there any low-hanging fruits when it comes to cost discipline? I mean EBITDA margin looks really healthy. How should we look at it for '26 year? Megat Bin Megat Hassan: I think if you look at the Tenaga Nasional operations, many of our -- I think our procurement and supply chain chief is here as well. So I think many of our operations are related to the market prices. And we will continue because TNB is actually an infrastructure company. So we actually develop and construct infrastructure. So many of our costs are actually related to this infrastructure. So what we are seeing from the perspective for the market, there is a good stability with respect to the cost of equipment, for example, PPE across the world. And this actually helps us with respect to how do we budget for it. So at the same time, the stability provides us with the incentive in the procurement and supply chain. And internally, we have introduced what we call the value-based procurement in the sense that we try to instill a value with respect to our procurement and supply chain. I think from that perspective, I think we are -- for 2025, we are managing that quite well. That's why you can see that the costs are very much contained against our budget. And we believe we can continue to optimize this over the years. And one of the key elements that enable this value-based procurement is actually data analytics, which now being aggressively embarked in the procurement and supply chain. So we are quite positive with respect to using data on the prediction as well as getting the best price that we can. Ahmad Maghfur Usman: Usman here from Nomura. For the contingent CapEx, does battery consider as contingent because that's managing the loads for electricity distribution? Is it considered as contingent CapEx? Or is that part of generation CapEx, which is nonregulated? Megat Bin Megat Hassan: At the moment, the battery project that we are doing at Santong is under the base CapEx. Ahmad Maghfur Usman: It's under base CapEx. Okay. All right. Megat Bin Megat Hassan: Because that's why the difference between base and contingent is quite simple. If we can determine the project to be a sure project before the start of the RP4, it becomes base CapEx. Anything that requires further analysis or demand, then it becomes contingent. Ahmad Maghfur Usman: All right. And then also on top of that, currently, you have your Lahad Datu, your Santong, and I understand those places are in far flung remote areas to manage their electricity load there. Are there any more utility scale battery projects that you're looking to do as well aside from those 2? I mean, aside from those 2 that has been done basically. Megat Bin Megat Hassan: Yes. I think recently, if you aware or search the market, there is a tender by the Energy Commission for 4 sites. Ahmad Maghfur Usman: Any additional on top of that 4 sites? Megat Bin Megat Hassan: At the moment, that is the 4 sites that has been identified. And of course, we believe that will be coming in a series of tender by the Energy Commission. Ahmad Maghfur Usman: And where are the location at for these 4 sites, if I may ask? Megat Bin Megat Hassan: The location has been determined, but I cannot remember exactly off it. And you may ask why 4? Because based on our grid stability and reliability, we can manage the integration of RE even without battery up to a certain point. That threshold is, I think it's about 6,500 megawatts of RE integration and the system doesn't require the battery backup. Before that, yes, we require a specific number of battery backup until 13,000, so in terms of the grid planning, that is where it is going. So battery, so what my message is that battery will be introduced progressively based on the integration of the RE project that we are going to have. Ahmad Maghfur Usman: So that's more on the solar SS6, right? Okay. The other thing that I wanted to ask is on your projects in Australia, the solar panels. With the recent VAT issue in China, the rebate and removal, is that going to impact your economics for the Australia venture? Megat Bin Megat Hassan: I think definitely, when there is changes with respect to the policy such as VAT, it will change the dynamic. But the good thing is about the Australian market, it is a supply and demand perspective. So any changes to the supply side, it will actually commensurate the demand side. So for Tenaga, we are managing this with respect to the margin that we are going to get. And that's where the capital allocation and the hurdle rate become very important for us to venture into the project. But we believe, as in the past, the supply and demand dynamics in a competitive market is always guaranteed in the sense that the players can and will sustain their margin. Ahmad Maghfur Usman: Two more questions. On the Paka, what's the split of ownership between the other party and yourself because that hasn't been disclosed. I was just wondering. Megat Bin Megat Hassan: Well, I think definitely, we are on the -- very well in the majority side. Ahmad Maghfur Usman: Okay. That gives an idea. Right. Megat Bin Megat Hassan: Because I think in the proper time, it will be -- because we have not reached the financial close, so I probably would not want to sell it. But we are in the good majority, CFO said good and significant majority. Ahmad Maghfur Usman: And then on data center, there was this article a few days ago, Prime Minister Anwar says that he wants to stop the new data centers. Is that the case at the moment? There's a strict freeze on new data center application? Megat Bin Megat Hassan: Yes. If we look at the statement in greater details, so my understanding is that the focus will be the data centers with the AI capability rather than the normal data centers because we know there are basically 3 type of data centers. One is for the commercial application. That is for the trading that we normally buy from Shopee. There's nothing intelligent about it. It's just a transaction to make it good. So that's normal data center. The second one is the slightly complex application of the data center, which require a good latency as well as size. For example, TikTok. This is the second category. Yes, people use it, some for commercial, but it requires a good latency and meaning that the speed has to be -- otherwise, you are not going to see the video in a very good form. The third one is actually the high-end data center that really process data and actually look at, for example, the solution for the future. For example, how do you predict the next 1 week of cloud in Malaysia, that is the AI data centers that require the GPU rather than CPU. So I think a simpler analogy, probably the GPU-based data center are still encouraged, but the CPU data center is very much discouraged. That's how we understand it. And this is our conversation, and we are supporting this direction from the government through MIDA. So now all the data center, in fact, in the past 1 year, we have been communicating with MIDA to ensure that the country get the best of the data centers of the world. Hazmy Hazin: Hazmy here from CLSA. I have a couple of questions, but I'll start first on how have you seen the impact of AFA mechanism for overall FY '25 under RP4? Badrulhisyam bin Fauzi: It has been very good, in fact. That's why if you look at our receivables now, long gone are the days where you see a significant amount in terms of the ICPT. So if you look at the numbers now, it only have a substantial amount of around MYR 1.3 billion, but that's not because of AFA. That is because of the adjustment for transitioning from January to July because RP4 tariff was announced in July, but January was using still the old tariff. So AFA has been super for us. It helps our overall cash flow. And this is the part where we say, obviously, AFA is based on forecasted price. So unlike ICPT, which was lagging 6 months. So what happened is that we forecast the price for next month, and we bill it accordingly already. So by the time you finish collecting the bill, all fuel costs are already recovered. And because of the favorable prices at the moment, you have seen that it is in rebate position. So it's been good for both consumers and it's been good for us. For us, this is the part where AFA help our overall cash flow, then we can plan our cash flow better, then we can deploy the capital better as well. Hazmy Hazin: And just on the tax questions earlier, just for my understanding and better clarity. So you mentioned this year is about 22%. And going forward, should we expect roughly around that or higher or lower, what kind of direction? Megat Bin Megat Hassan: There are 2 sides of the equation. One is the incentive allowance that we will be utilizing. So that's one, I think, is what we would like it to be and the plan is to be consistent coming from the bucket that the allowance that is provided to us. The second part of the tax is actually how well the business is going to be moving forward. So there are 2 perspectives. The absolute amount may change because of the second part because we would like to pay higher taxes provided that we are making better businesses. I think that's the intent. So in terms of the percent, yes, I think we would like it to be in a very controlled manner as what you mentioned. Anything you want to add? Badrulhisyam bin Fauzi: I think they're looking at a number, obviously. So I think if you are forecasting long term, I think it will be prudent to keep it at around 24% for the longer term, which is what the effective tax rates are. Yes, we have this investment allowance incentive, but there is conditions to it. And obviously, for a company of TNB size, there are other factors such as interest restriction, fair value changes and accounting adjustment that would not qualify for tax deduction. So yes, this year, slightly better. But I think long term, I think push it to 24%, and that should be what we endeavor to deliver over the next many years. Hazmy Hazin: And on contingent CapEx, 2 side of things. So you mentioned, I think, about 80% utilization of that MYR 16 billion. Will that be spread evenly across these coming 2 years? Or will it be back ended? And also, you mentioned in terms of the difference between contingent and the base CapEx is the approval process. Can you just elaborate a bit how different it is? Badrulhisyam bin Fauzi: Maybe if you can pull up the slides on the contingent CapEx just now because as far as the CapEx quantum are concerned, that's why we have MYR 13 billion and MYR 15 billion. You look at 2025, obviously, I split it between base and contingent. But for '26, '27, if you think about it, the MYR 10 billion of the base CapEx out of '26 is already spent in '25. So the balance is only MYR 16 billion. And just now the Dakut Megat also guided that for 2026, contingent CapEx is around MYR 3 billion. So I think what we're saying is, yes, the majority of 2027 would be from contingent CapEx. So if you look at it, we are not really looking it internally that you have to top up or the other. It's really planning the CapEx of delivering the MYR 40 billion or MYR 43 billion maximum. So where it comes from, yes, you are right, it's a matter of process. So if you remember, before this, we talked about the base CapEx being reflected in the base tariff already. And then the contingent CapEx at the point of RP4, it wasn't certain yet. So that's why it goes into contingent CapEx. But the moment it goes into the regulated asset base, it becomes the overall return. And we do not itemize -- I mean, it's not differentiated where the revenue comes from. It's the same thing. So to us, we are not so concerned about whether it's base or contingent anymore, and you shouldn't be also because the moment it goes into CapEx, let's say, 13 billion next year, whatever the composition, you will get the 7.3%, and you will get the return from that. So that's the way we look at it. So yes, there is upside there, but that is if we can deliver more than 80% of the contingent. So that's the way we should look at it. So that's why we keep saying that the recognition now is the same as base. So as far as the numbers are concerned, of course, on the operations side, they need to think about how to get the approval because the base CapEx is approved. Contingent CapEx is preapproved, but you need approval before you spend it. This is the trigger. So this is still consistent with what we told you when we got the approval the last time. It hasn't changed. So it takes a bit longer for contingent CapEx. And now that we know how the mechanism works, obviously, we will preplan ahead so that by the time we get to spend it, it's already approved. So... Hazmy Hazin: Just last question. I think I saw there's an elevated IT spending on computer software during the quarter. Is that a one-off thing? Or will that be repeated? Megat Bin Megat Hassan: Yes. This is something that we are trying to manage. And to a certain extent, we have a discussion with the IT providers. It is very much to the software licensing that we have been having with the current service provider that we have. So what we have done at least for one service provider is actually because in the past, the formula is always very rigid. It is the number of employees of Tenaga Nasional regardless whether you are a user or nonuser for that specific software, but it's taken to that dimension. The published number of employees is the base versus the fee. So we are having a communication with the service provider, best we actually handle this moving forward so that it will reflect actually the actual utilization and the fee that we are going to cost us. And we have gotten some positive response towards that. So we believe this is something that, yes, it is a concern, but I think we are -- we want to address it. And I believe we see there. So I believe we are going to manage it in 2026. Edwin Ng: Okay. Now we will move on to take a question from Webex. We have Fong from CMB on the line. Unknown Analyst: Just 2 questions from me. Firstly, I just wanted to go back to the earlier question, right, on the nonfuel costs, particularly related to the software licensing. I wanted to understand whether these are incurred on the regulated side of the business and therefore, are these costs, when we see them going up, are they recoverable through the IBR framework or not? That's the first question. And my second question is I noted that there is a recovery of insurance claim at Genco subsidiaries in the fourth quarter. Is this related to Manjung 4 or something else? And how much was the amount? And would there be further recovery in 2026? Those are my 2 questions. Megat Bin Megat Hassan: Yes. In -- question one is still on nonfuel costs, example, software licensing. Yes, these are incurred under the regulated costs. And it is not only software licensing. The IT also include the cybersecurity measures that we are taking. So those are basically recovered through our IBR scheme. Recovery of insurance claim in Genco, is it related to M4, how much, second question. Will there be more recovery in 2027? Yes, partly, I think the recovery is actually coming from Genco. And with respect to the Genco recovery, we will continue in 2026, how best we get those recovery. We are talking also to the OEM together with the insurance, respectively. So probably that's the answer. Yes, we already started in 2024 for M4 recovery and 2025. We will continue in 2026. But most accounting refer that to as one-off item. Edwin Ng: Okay. Due to time constraint, we will now take the last question from a participant on Webex. The participant is Rachel Tan from UBS. Can you hear us? Rachael Tan: Can you hear me? Edwin Ng: Yes, we can hear you. Rachael Tan: Great. I had 4, but I guess now I have to choose one. Okay. I guess I can ask the more broader question. So for the contingent and base CapEx, I think there's a lot of interest among investors about what the nature of the CapEx is. So will you, in time, be able to share with us the nature of the projects being done? I think people would really be interested in the color that you can provide. Megat Bin Megat Hassan: Thank you very much. As mentioned, the definition of base CapEx and contingent CapEx is the grouping with respect to the project. But it relates to the same nature, meaning that is the infrastructure that Tenaga will be building upon, meaning that it's the transmission line, the substation, the distribution network, the small substations, PES, as we call it, as well as the up to the customer interaction, for example, smart meter. So it is this nature of CapEx that Tenaga spent. And the intent or the objective of those CapEx are basically 3. First is actually demand growth, meaning that we are going to build new substations. We are going to build smaller substations at the grid at the distribution level for new growth with all the equipment in place. Second is replacement of our existing asset, meaning that the asset that has been there for, based on the lifespan, 25 years that require replacement. So this is the second objective of the CapEx. The nature is still the same. If the pencawang is more than -- the substation is more than 30 years, we will do a rehab, meaning that we will do the replacement of all the equipment, including the lines. So the second objective is actually replacement that we call it as security of supply, meaning that we ensure the objective of security of supply. So these are the 2. The third one is specific to the energy transition perspective. For example, there is a requirement for us to do the integration of RE from solar rooftop as well as solar farm or even from hydro as well as the gas power plant. That is part of the energy transition CapEx. And we also include smart meters, for example, as part of the energy transition CapEx. So the definition and objective can vary, but the nature of the CapEx are the same. It's about the infrastructure of electricity that we are going to build or replace or the new technology that we are going to introduce for the grid as well as the distribution network and also for the customer benefit. I think the details, I think the team probably can share because it's not something that is a secret so that we can have those understanding. Okay. Thank you, Rachel. I hope you have given us the most difficult question. And I believe the other 3 questions, you can still post it and the team will address it accordingly. Edwin Ng: Ladies and gentlemen, that is all the time we have for Q&A today. I would like to thank you all for your questions. Now I'll pass to Datuk Ir. Megat Jalaluddin Bin Megat Hassan, President and CEO of TNB for his closing remarks. Megat Bin Megat Hassan: Thank you once again, Edwin. So this is the closing remarks. Ladies and gentlemen, thank you for your questions and listening. As always, please reach out to our Investor Relations group for any questions and further questions that we were not able to cover today. To summarize today's session, recap financial year 2025 performance reflect the strength and resilience of TNB business model. Our regulated segment continue to provide earnings stability with cash flow visibility, supported by disciplined RP4 execution and improving operational performance. We delivered across all our pillars, securing new generation capacity under Category 2, strengthening grid resilience, advancing RE integration as well as a spending-driven customer solution. At the same time, we progress regional interconnection initiatives and enhance our ESG performance, reinforcing our long-term competitiveness and also funding assets. So in conclusion, we remain committed to delivering sustainable return to our shareholders. Our dividend policy thus far remain intact, and we expect to sustain on current trend of dividend payment, of course, subject to performance and financial condition in which the management will try our best to deliver the excellent performance. With your continued trust and support, we remain confident in our ability to build a stronger, greener, more resilient energy future for the nation. Rewarding our shareholders remain a top priority, and we truly value your continued confidence in us. Once again, thank you very much, ladies and gentlemen, and have a pleasant day ahead. [Foreign Language] We see each other in the future in a different platform. Thank you very much. Edwin Ng: Thank you, Datuk Megat. Ladies and gentlemen, we have now come to the end of our session. On behalf of Tenaga Nasional Berhad, we thank you for your participation in today's briefing, be it present physically or virtually. For any questions that remain unanswered, rest assured that we will promptly address them following this event. If you require further clarification and inquiries, please feel free to contact our Investor Relations officer and e-mail us at tenaga_ird@tnb.com.my. As you leave the hall, we warmly invite all analysts who have yet received their door gift and packed food to kindly collect them before departing. To those observing the holy month of Ramadan, wishing you a blessed and peaceful Ramadan. Thank you, and have a wonderful day.
Silvia Ruiz: Good afternoon, everybody. This is Silvia Ruiz speaking, and I would like to welcome you to Ferrovial's conference call to discuss the financial results for the full year of 2025. I'm joined here today by our Chairman, Rafael del Pino; our CEO, Ignacio Madridejos; and our CFO, Ernesto Lopez Mozo. Just as a reminder, both the results report and the presentation are available on our website since yesterday evening after the U.S. market was closed. At the end of the presentation, there will be a Q&A session run by our CEO and our CFO. [Operator Instructions] Before starting, please take a moment to look at the safe harbor statement included in the presentation. And please bear in mind that the presentation contains forward-looking statements and expectations that are subject to certain risks and uncertainties, so actual figures may differ. Other than as required by law, the company assumes no obligation to update forward-looking statements. During this call, we will discuss non-IFRS financial measures, which are defined and reconciled to the most comparable IFRS measures in our results report. With all this, I will hand over to Rafael. Rafael, the floor is yours. Rafael del Pino y Calvo-Sotelo: Thank you, Silvia, and good afternoon, everyone. Ferrovial delivered a robust performance across all business divisions in 2025. In Highways, our North American assets continue to deliver outstanding revenue and EBITDA growth. In Airports, we continue to make progress at New Terminal One at New York's JFK Airport, where our focus is now on operational readiness. And in Construction, all lines of business achieved an outstanding performance. On the financial side, we closed the year with a solid cash position with negative net debt, excluding infra projects of $1.3 billion. This was supported by record dividends received from our infra assets that reached EUR 968 million. In addition, we collected proceeds of EUR 533 million from the sale of AGS and EUR 539 million from the divestment of a 5% stake in Heathrow Airport. These cash flows were combined with investments for growth that included the acquisition of an additional 5% stake in 407 ETR for EUR 1.3 billion as well as EUR 236 million of equity injections in NTO. At the same time, we returned to shareholders EUR 156 million in cash and repurchased shares totaling EUR 501 million. We also achieved significant milestones in 2025. We were shortlisted for the bidding of the I-285 East Express Lanes in Georgia and the I-24 Southeast Choice Lanes in Tennessee, both of which are expected to be awarded this year. And in February 2026, Ferrovial Consortium was shortlisted for the I-77 South Express Lanes Project. Following our U.S. listing in 2024, Ferrovial joined the NASDAQ-100 Index in December, a key milestone that reflects our growing presence in the North American market and the confidence investors place in our long-term strategy. In the following slide, we review some of the key figures for the year. Revenue reached EUR 9.6 billion, up 8.6% year-over-year on a like-for-like basis, driven mainly by higher revenues in highways and construction. Adjusted EBITDA stood at EUR 1.5 billion, representing a 12.2% year-over-year increase on a like-for-like basis, supported by the growing contribution from our portfolio of Managed Lanes in the U.S. and a very solid year in our construction business. The construction order book reached a new all-time high of EUR 17.4 billion with almost 50% coming from North America. Dividends from projects reached a record EUR 968 million, showing a 2.2% increase year-over-year, led by contributions from Managed Lanes and 407 ETR. As mentioned before, a solid cash position with negative net debt ex infra projects reached $1.3 billion. And finally, total shareholder return in 2025 reached an outstanding 38.6%. I will now hand it over to Ignacio, who will review Ferrovial's performance in 2025 by business division. Ignacio, the floor is yours. Ignacio Madridejos Fernández: Thank you, Rafael, and hello, everyone. Let me begin with an update on our strategy. Our key North American infrastructure assets, the 407 ETR and the U.S. Managed Lanes continue to perform strongly. The 407 ETR delivered double-digit EBITDA growth, while the Managed Lanes reported revenue growth significantly above inflation. In NTO, we advanced in the construction of the New Terminal One at JFK and invested EUR 236 million in equity over the year. In terms of growth opportunities in North American highway assets, we increased our stake in 407 ETR to 48.29% showing our confidence in the long-term prospects of the Greater Toronto area and the long-term value creation of the asset. During 2025, we also made significant progress in our U.S. pipeline. We were shortlisted for I-285 East in Georgia and I-24 in Tennessee, both of which are expected to be awarded this year. Additionally, in February 2026, Ferrovial's Consortium was shortlisted for the I-77 South Express Lanes project in North Carolina with award estimated for 2027. All 3 are managed lanes projects in fast-growing metro regions. We are facing a record pipeline of infrastructure projects in the U.S., larger than anything we have seen before. As cities continue to expand and congestion intensifies, managed express lanes and toll-based systems have proven to be reliable and highly efficient solutions. Beyond highways, we continue to monitor opportunities across other infrastructure segments, including airports like NTO with capacity expansion needs, greenfield data centers and energy infrastructure projects. Recent examples include the development of solar photovoltaic projects in Texas and the acquisition of land plots for data center development in Spain and Poland. We remain selective when pursuing only those opportunities where our capabilities provide a clear competitive advantage and the risk return profile aligns with our strategic priorities. Our capital allocation strategy, focused on mature assets, continues to provide flexibility to reinvest in the most attractive opportunities. Our divestments in Hydro and AGS in 2025 are good examples of this. This growth strategy will be funded by solid cash flow expected from our current portfolio in the following years, while we continue to maintain our financial discipline with a focus on delivering value creation for our shareholders. Turning to Highways. 2025 was another outstanding year for the business division, especially in North America. Highways revenue grew 13.7% like-for-like in the year, while adjusted EBITDA was up 12.2%, driven by a strong double-digit growth from our U.S. assets. In the fourth quarter, the adjusted EBITDA declined by 2.9% compared to previous year, impacted by foreign exchange and higher bidding costs. U.S. Highways revenue grew 14.2% in like-for-like terms in 2025 compared to previous year and adjusted EBITDA increased by 12.4% versus 2024. Dividends from our North American Highways totaled EUR 855 million in 2025, reflecting the strong growth and cash generation of these concessions. The figure is slightly below the EUR 860 million in 2024, but remember that 2024 includes the first dividend from I-77 after 5 years of operation, which was an extraordinary amount of EUR 205 million. Turning to the 407 ETR. The asset delivered an outstanding performance in 2025. Traffic increased by 6.1% in 2025. This growth reflects the success of targeted rush hour driving offers as well as the increase in mobility from Return To Office mandates, partially offset by unfavorable winter weather in 2025. Revenue grew 17.8% year-over-year, with toll revenue increasing 17.6%, primarily due to the higher toll rates that came into effect on January 1, 2025. Looking at fourth quarter figures, revenue per trip grew by 7.1% compared to 11.7% for the full year. This last quarter's performance was mainly due to seasonality and a softer contribution from heavy vehicles, which pay higher toll rates. In terms of EBITDA, it grew 14.2%, impacted by the Schedule 22 expense provision that was CAD 40.9 million in 2025, along with an extraordinary higher provision for lifetime expected credit losses. Looking at promotions, they work very well in incentivizing more efficient use of the road throughout 2025. These targeted offers continue to provide us valuable insights into customer behavior. We expect our focus on demand segmentation to continue enhancing value for users and maximizing EBITDA growth. Regarding dividends in 2025, the 407 ETR distributed a total of CAD 1.5 billion. Lastly, on January 1 of this year, the new toll rate and fee scheme was implemented. Moving now to our Dallas-Fort Worth Managed Lanes. In terms of traffic, the corridor remains strong, while traffic in our Managed Lanes was impacted by construction works. In terms of operating results, the 3 projects posted solid growth versus last year, both in terms of revenue and EBITDA despite the increase in revenue share. Remember that revenue sharing is a consequence of the overperformance of the assets. At NTE, traffic declined 4.7% compared to 2024 due to the ongoing impact from capacity improvement construction works. These works are expected to be completed by year-end except for 2 additional ramps that began construction last year. Despite lower traffic, revenue increased by 8.1% in 2025 and adjusted EBITDA grew by 5.5% year-over-year, including $8.1 million of revenue share in 2025. At LBJ, traffic was flat in 2025 despite the impact of construction works affecting nearby connecting highways. In the fourth quarter, traffic performance was affected by changes in the staging of adjacent projects. Revenue grew 8.6% in the year, while adjusted EBITDA grew 9.2% versus 2024. At NTE 35 West, traffic increased by 2.9% in 2025, reflecting solid demand across the corridor. When looking into the fourth quarter performance, the traffic was down by 0.4%, impacted by bottlenecks at managed lane access exit points and the finalization of capacity restriction linked to construction works on competing nearby road 121. We are working to identify solutions that relieve congestion and address these bottlenecks that I mentioned, also any implementation could take a few years. On the financial side, revenue grew a robust 14.7% year-on-year and adjusted EBITDA rose 10.6% for the year and included $26.4 million of revenue share. In all our Dallas-Fort Worth Managed Lanes, revenue per transaction increased well above the soft cap and inflation, supported by a favorable traffic mix. NTE and 35 West also benefited from a higher number of mandatory mode events. This soft cap was updated for 2026, increasing by 2.7%. Revenue per transaction grew year-on-year by 13.4% in NTE, 8.7% in LBJ and 11.6% in 35 West. Following this robust operating performance, all 3 Dallas-Fort Worth Managed Lanes delivered higher year-on-year dividend distributions. NTE reached $216 million, LBJ $123 million and NTE 35 West $215 million. Moving now to I-66. Traffic increased by 7.4% in the year, supported by a strong corridor growth that benefited from greater enforcement of Return To The Office policies despite worse weather conditions and the federal government shutdown in the last months of the year. Revenue per transaction grew by a healthy 13.3% in 2025. Looking at last quarter's performance, let me highlight that the 1.3% increase in revenue per transaction reflects a singular quarter performance, influenced by an unusual traffic mix and lower peak hour volumes, mainly due to adverse weather conditions and the temporary shutdown. We remain confident on the asset and expect future toll rates to grow above inflation based on the value for users linked to how congestion evolves in the area. Adjusted EBITDA rose an exceptional growth of 25.7% in 2025, driven by traffic growth and higher toll rates. In 2025, I-66 distributed $165 million in dividends at the 100% level compared to $172 million in 2024 when the asset paid its first dividend distribution after 2 years of operation. Turning to the I-77 or Managed Lanes in North Carolina. Traffic declined in both fourth quarter and full year as the fourth quarter of 2024 traffic benefited from an exceptional uplift caused by hurricane-related alternative lane closures, together with adverse weather conditions throughout 2025. I-77 delivered a very strong revenue per transaction growth, up 24.7% year-on-year. The adjusted EBITDA grew by 16.5% in 2025, including $21 million of revenue share in 2025. I-77 distributed $52 million in dividends at the 100% level compared to $307 million in 2024, which was the first dividend distribution of the asset after 5 years of operation. Our North American toll road assets are located in some of the top performing regions in North America, consistently growing above the national average. Starting with Toronto, short-term economic growth may be modest given the geopolitical environment. but the long-term prospects remain solid. The Greater Toronto area population is expected to expand 22% by 2051, and Toronto is forecast to deliver higher 5-year GDP growth than both Ontario and Canada. Moving now to Dallas-Fort Worth. The region continues to show very strong economic and demographic momentum. By 2050, Dallas-Fort Worth is projected to surpass Chicago and become the third largest metropolitan area in the U.S. with more than 12 million of population. The region benefits from a very diversified economy, and it remains one of the most attractive destinations for both corporate and families relocating within the U.S. Over the next 5 years, its GDP growth is projected to exceed the U.S. average. In Northern Virginia, the area stands out for having high household incomes. The Washington Metro area has a higher proportion of households earnings above $100,000 than the U.S. average. Over the next 5 years, the median household income is forecast to rise by 3.2% in Washington Metro area. Lastly, Charlotte remains one of the fastest-growing metro areas in the Southeastern United States. In 2025, we recorded the highest growth rate among the top 50 metros at 2.3% versus a national average of 0.9%. Looking ahead, the region's population is projected to increase by more than 50% by 2050, led by Mecklenburg County, where the I-77 corridor is located. Turning to our business in India. In 2025, IRB reported decrease in revenues, showing lower construction activity following the completion of several projects as well as the one-off positive impact from a claim recorded in 2024. IRB Private InvIT continued to deliver solid performance with a year-on-year growth in revenues and EBITDA. At the same time, their Private InvIT advanced in its capital recycling strategy through the sale of 3 assets to the Public InvIT, enhancing portfolio optimization. During the year, IRB Private InvIT was awarded 2 new TOT concessions, reinforcing the company's leadership in India's toll road monetization program. Looking ahead, India remains an attractive market, supported by a strong GDP and a significant funding gap in transport infrastructure. In 2025, India's GDP grew by 7.7% year-on-year despite ongoing macroeconomic headwinds. Moving on to Airports and New Terminal One project at JFK Airport, we continue making steady progress towards operational readiness. The project keeps progressing, facing a crucial year. In terms of the schedule, the contractor has communicated an updated target completion date for the first phase of construction of fall 2026. The project reached 82% construction progress as of the end of the year. We have secured commitments from 25 airlines, including 16 executed agreements and 9 letters of intent. As a reminder from previous quarters, we achieved an important milestone in July, completing the refinancing of Phase A through the issuance of a $1.4 billion long-term bond. Turning to our airport in Turkey, Dalaman delivered a steady performance despite macroeconomic headwinds and geopolitical challenges that significantly affected international traffic. In 2025, passenger numbers declined by 1.1%, yet revenue grew 3.6%, driven by better non-aerial performance. Adjusted EBITDA increased 2.5%, supported by a strong commercial performance. Ferrovial received EUR 7 million in dividends from Dalaman in 2025. Let's now turn to Construction. The division posted an outstanding year, delivering a strong growth and solid profitability across all business units. Revenue reached EUR 7.7 billion, up 7.5% in like-for-like terms compared to 2024. Adjusted EBITDA was EUR 511 million, up 19.9% and adjusted EBIT totaled EUR 352 million, increasing by 24.2% like-for-like. The division delivered a 4.6% adjusted EBIT margin in 2025, above our long-term strategic target. The business performed well across all divisions. Budimex delivered a standard 9.2% adjusted EBIT margin with improvements across all segments and benefiting in fourth quarter from one-off change orders and higher contribution from late-stage contracts with risk already fully mitigated. Webber reached a 3.2% adjusted EBIT margin. Ferrovial Construction improved to 2.4%, supported by risk reduction on later-stage projects and improved execution. Also profitability in 2025 continued to be impacted by significant design activity in bidding for projects and costs related to digitalization and IT systems. We finished 2025 with a record high order book of EUR 17.4 billion, up 10.1% like-for-like from December 2024. The composition of the order book remains very healthy. It does not reflect roughly EUR 2.5 billion in contracts that are pre-awards or pending financial close. Almost half of our order book is in our core U.S. and Canada market, which we expect will continue to support future growth. Our operating cash flow reached EUR 597 million in 2025, compared to EUR 291 million in the previous year, driven by fourth quarter working capital seasonality in Poland and Spain, together with prepayments and compensation received in the U.S. and Canada. Lastly, in terms of outlook for the division, we maintain our average long-term target of 3.5% adjusted EBIT margin. Now Ernesto will continue with main financial information. Ernesto Lopez Mozo: Thanks, Ignacio. I'll cover now the main lines of the P&L statement. As you have seen in the previous slides, adjusted EBITDA has grown on the back of U.S. highways and construction operational performance. The EBITDA figure also includes other businesses like waste treatment in the U.K. In the fourth quarter, an agreement was reached to exit the Isle of Wight waste treatment contract by the end of March 2026. This agreement had no additional impact on the P&L from what had already been recognized in the first 9 months. As we have mentioned in past calls, we aim to fully exit the business in due course. Depreciation has increased on the back of higher traffic than expected on I-66 and replacement CapEx being brought forward in the Dallas-Fort Worth Express Lanes. The disposals and impairments in 2025 relate mainly to the sale of AGS. During 2024, we had the impact of the sale of 19.75% of Heathrow. Financial results Infra projects, a slight increase of expense versus previous year due to increased debt in highways along 2024 and lower cash remunerations on lower average cash balances, partially mitigated by U.S. dollar depreciation. Financial results ex infra projects, the income is driven by net cash balance, the Heathrow Airports Holding 5.25% stake ticking fee and employee share plan hedges. Last year, we had the fair value positive impact of the 5.25% stake in Heathrow Airport Holding that was sold this year in 2025. Equity accounted affiliates profit growth on the back of the Frozen ETR outstanding performance. Income tax has a positive impact due to recognition of tax credits in the U.S. and Spain mainly. Results from discontinued operations reflect earnouts from divested services business. Turning to the net cash -- net debt position, the ex infrastructure net debt. We see that dividends from projects amounted to EUR 968 million. On top of the Highways dividends already discussed, Energy distributed EUR 54 million corresponding to the return of capital invested in a photovoltaic plant in Texas and the Airports divisions distributed EUR 30 million, of which Heathrow represented 50%. Construction operating cash flow tax payments ex dividend reached EUR 596 million, driven by the fourth quarter working capital in Poland and Spain and further enhanced by prepayments and compensations received in the U.S. and Canada, as Ignacio just discussed. Tax payments reached EUR 100 million, including EUR 47 million of corporate income tax in Budimex. Investments totaled EUR 1,970 million, mainly due to the additional 5.06% stake acquired in the 407 ETR for a price of roughly EUR 1.3 billion. And also the EUR 236 million of equity invested in NTO. Interest received and other investing activities cash flow amounted to EUR 130 million, mainly related to cash remuneration. Divestments reached EUR 1,158 million, largely driven by the divestment of Heathrow, EUR 539 million, and the divestment of AGS, EUR 533 million. Cash dividend and treasury share buybacks purchases at EUR 657 million in 2025 includes EUR 156 million from cash dividends and EUR 501 million of share buybacks. Other cash flows from financing activities used in finance activities, you have EUR 437 million, including the repayment of the revolving credit facility that was EUR 250 million, also the reduction of the euro commercial paper, EUR 200 million and financial leases reduction of EUR 121 million. Also we include here the dividend to minorities that is EUR 77 million and interest payment, EUR 64 million. All this is partially offset by the issuance of nondilutive convertible bond that is registered here at EUR 350 million. We also have the effect of the exchange rates on cash and cash equivalents, a reduction of EUR 91 million, mainly from the U.S. dollar depreciation. But we don't include here in this net cash position, the mark-to-market of FX hedges. As of December 2025, we had notional foreign exchange hedges of $2.847 billion, in U.S. dollars, and CAD 538 million. The corresponding mark-to-market of these hedges was EUR 147 million, as I mentioned, not included in the net cash position. Moving to the slide of dividend proposal. This year, we shall propose EUR 1 billion in dividends. We can consider this is a EUR 400 million top-up of what would be a comparable dividend to past years of EUR 600 million. With this, the aggregate dividends for the period 2024 through 2026 would total EUR 2.2 billion following market standards where dividends are based on the share price at the time of delivery to shareholders. As obviously, we're looking to break it down probably into dividends along the year. And now let me hand it over to Ignacio for the closing remarks. Ignacio Madridejos Fernández: To conclude, our North American portfolio continues to deliver solid revenue and profitability growth, driven by enhanced customer segmentation and underlying growth in the locations where our assets operate. Looking ahead, we are well positioned for continued growth, supported by a record pipeline of U.S. infrastructure projects and rising interest in P3 opportunities across the country. Finally, our construction order book remains healthy with anticipated limited exposure to inflation. Silvia Ruiz: Thank you very much, all of you. And let's start with the Q&A session. So operator, please go ahead. Operator: [Operator Instructions] Our first question comes from Cristian Nedelcu from UBS. Cristian Nedelcu: The first one on the ETR. The Q4 revenue per transaction up 6% you mentioned due to some weakness in heavy vehicles. Can you elaborate on this? And is this spilling over into 2026, this headwind? The second one, you had the new pricing in place for the ETR 407 from January. Could you talk a bit about what you're seeing, the feedback from customers? Are you seeing demand erosion as a consequence of that? Or are you expecting other negative mix impacts here? I'm trying to understand if this 21% growth in prices at peak times is representative for the revenue per trip growth in 2026? And the last one, if I may, N35 West, you -- during your remarks, you mentioned about the volume weakness in Q4 also due to some bottlenecks. And it sounded that you expect this to spill over into 2026. Could you elaborate a bit if my understanding is right? And if you can give more details there? Ignacio Madridejos Fernández: Thank you for the questions. I will start with the , 407 ETR, the revenue per transaction in the fourth quarter of the year that was lower than the previous quarter. You have to consider that it's something that happens usually the fourth quarter compared to the third, there is some seasonality. And in this case, probably more even because of the weather that affected. And usually, what happens is that during the summer, you will have longer trips in the corridor and also more type of users that have transponders and they have a charge because in the reviews, it's not that we have. So it has been repeated this quarter, as commented because of weather probably more. Well, some effect that not relevant about the heavies, but it's too early to say if it's something that will continue. Of course, always is very related to the economic activity of the country and especially about the region of Canada and is continue expected to grow in this year according to third parties, but we have to see how it is evolving. And also what we need to consider always in these things is the effect of promotions. And as you know, we are very positive about the promotions that we did last year. And I think that is helping with users, with the value that we give to the users, but also is helping to maximize EBITDA. And this is the main KPI that we are following, promotions are increasing traffic, but are also reducing revenue per transaction, but it helps us to maximize EBITDA. And this is something that we have to follow this number. For this year 2026, we don't give any guidance. But as commented previously, we'll continue with promotions as we did in 2025. And we expect also that is going to contribute to maximize EBITDA also in this year 2026. Regarding the 35 West, the volumes in the last quarter, yes, I commented about some bottlenecks that we have that is affecting the whole corridor. The whole corridor is growing and what we are seeing is more congestion. And this is something that will continue happening. As you know, more congestions will mean that some traffic is moving out of the corridor, but it also will mean that probably we have more mandatory modes in the way that we have had until now. Of course, as I commented, we are looking for solutions. But I think we have some designs and changes that could improve the situation, but we need several approvals, and it will take time. But as commented in the short term, we may see softer traffic compared to the whole traffic growth in the region, but probably because of more -- of congestion, more mandatory modes. Operator: Our next question comes from Luis Prieto from Kepler Cheuvreux. Luis Prieto: I have 3 questions, if I may. The first one is, could you please shed a bit of light on the reasons behind the provision for lifetime expected credit loss on the 407 ETR? Should we expect this to happen again? The second one is that, although you have reiterated your long-term EBIT margin outlook in construction in one of your slides, wouldn't Q4 margins suggest that there is upside risk to this figure over -- at least over the coming year? And the third question is if you could provide us, please, some anecdotal evidence on customer segmentation measures in the U.S. Managed Lanes, not the 407, which I think is widely understood, but what are you doing specifically in the U.S. Managed Lanes? Ignacio Madridejos Fernández: Thank you, Luis. About this provision for credit loss. Some years ago, we had a change in the processes that we have. And because of that, we have some old accounts that we thought that it was healthy to provision at the end of last quarter. And the new collections after this change of process that we are seeing right now are back to what they were before this change of process. So it's back to normal to what it was before. In terms of EBIT, the only guidance that we give is that long-term average EBIT is 3.5% for construction. So sometimes we'll be above, other times we will be below. As you know, this is a cyclical business. And this is the only guidance that we are giving. So we mentioned several times that we have a healthy backlog today. But the only guidance that we are giving is about this 3.5% EBIT margin in the long term. And also regarding the fourth quarter, there were some one-offs that were exceptional and related to some change orders that we have in certain countries. And the last one about the customer segmentation in the U.S., yes, of course, something that we are looking at and we are analyzing. However, it's too early and more difficult than in the 407. And it is because we are not doing the collections in the case of the U.S. Managed Lanes and it's more difficult to reach customers. But of course, it's something that we are analyzing and seeing if we can create value also maximizing EBITDA with promotions in the future, but it will take longer. Operator: Our next question comes from Graham Hunt from Jefferies. Graham Hunt: I'll ask 2, if that's okay. Firstly, we read a lot at the moment about the impacts of AI and both in terms of pressure on white collar industries, but also technologies, which I think are relevant to your portfolio, like increased presence of autonomous vehicles. So just wanted your thoughts on how you're thinking about these potential threats or developments with respect to Ferrovial's discretionary lane assets? And is it coming into your thinking as you prepare for bids on the upcoming projects, which you highlight here in the pipeline? And the second question, just on dividends, upstream dividends. Just where do we stand or where is your thinking in terms of assets and whether you can increase that to increase upstream dividends across the U.S. and Canada. Ignacio Madridejos Fernández: Thank you, Graham. I will take the first one and Ernesto, the second. Also I mean, we could not hear you very well the second question, but we will try to answer. Regarding AI and autonomous vehicles, we have followed some research done by third parties about what could be the implications of especially autonomous vehicles because AI is a little bit more difficult and probably new. But in the case of autonomous vehicles, main conclusion is that at least in the short term, what we see is more traffic. So it will be probably autonomous cars moving more than the cars today, and so will be more traffic and congestion. And especially that will create more congestion when they are running at the same time with cars driving by human beings. So I think that short term, we see that as a positive thing. The implication of AI is a little bit more difficult. And I think there are different versions if they will maintain employment by the people doing different things or there will be a reduction of, in general, white collars. Of course, some cities will be stronger depending on the type of workers that they have and the type of industries and the type of things that they do. And as long as we can have some information about this and we can incorporate the models we'll do. But so far, there are more questions about autonomous vehicle and less about artificial intelligence. But as long as we get more information, of course, we'll incorporate in our models and of course, in the bidding process. Ernesto Lopez Mozo: Thanks, Graham. If I listened well, the question was regarding the possibility of helping uplift dividends from our projects like the 407 and Managed Lanes with some additional leverage. Yes, this is a question we get recurrently asked. I mean, clearly, the 407 is very -- with very comfortable ratios. So we could be seeing some uplift there. Don't expect like a big bank, but yes, I mean, there could be an improvement in dividends just because there's ample capacity there. Regarding the Managed Lanes, you know that always the optimal in terms of delevering is comparing with the business plan that was submitted. So we could have not in the near term, but not too far away, some additional leverage on the I-66. Those are the main ones, 407 and I-66. We could have some angle in others, but we will update in due course the market. So yes, the summary is that, yes, we have some headroom there. Operator: Our next question comes from Ruairi Cullinane from RBC Capital Markets. Ruairi Cullinane: Please, could you provide some commentary on pricing on the I-66 and I-77 at the start of the year? Would it be reasonable to assume another year of double-digit pricing increases in terms of revenue per transaction growth on these assets? And secondly, you had a strong Q4 across all construction businesses. I was wondering what drove the more than doubling of EBITDA in Ferrovial Construction. And then finally, on the Schedule 22 provision, it seems like there are a few sort of moving parts that could drive that this year, on the one hand, higher tolls, but also perhaps more rush hour traffic and further targeted promotions, would you say overall, we could expect a decrease in Schedule 22 payments? Ignacio Madridejos Fernández: Thank you for the questions. As you know, we are not giving any guidance about this year 2026 in terms of pricing. The only comment that I made during the presentation is that in the I-66, we expect that toll rates will increase above inflation. And the only thing or the only comment is that, as you know, this is -- toll rates are increasing based on the value to users. And it is very related to congestion and increase of population and economic activity. And as long that is happening and there is value for users, we'll try to capture and especially I-66 and I-77 that we have freedom to set toll rates. But as commented, we are not giving any guidance. In the case of the Construction business, the margin for the year was 4.6% EBIT margin and I commented that especially in the fourth quarter, we have some positive developments in some markets with change orders, also some projects at the later stages that the risks are eliminated. So there were some February positive things that happened at the end of the fourth quarter. But we are not giving any guidance of following years or what is going to happen next. And in terms of Schedule 22, again, as commented previously, what we are trying to do with the promotions is to maximize EBITDA and part of the equation, of course, is the traffic, is the revenue per transaction, but also the Schedule 22. And we consider the 3 things whenever we define what is the toll rate increase for the next year and the promotions that we are launching during the year. And as you know, we have different sectors and in some sectors, it makes sense to increase promotions, in other less. And depending on that, we can pay Schedule 22 depending on the traffic or not. So the objective is not that to be a number that is 0, but to maximize EBITDA. And we consider all things together to take the best decisions in order to maximize EBITDA. That is the main KPI that we need to follow in the 407 ETR. Operator: Our next question comes from Elodie Rall from JPMorgan. Elodie Rall: Just to come back to the 407. I was wondering if there has been any pushback politically or in the press to the tariff increase that you have announced for '26? And also, I know we've talked a bit on that. But in terms of promotions for '26, should we expect a similar impact to '25? Or will you increase the intensity there? And then with regard to the NTO, so you said the opening now is pushed to the fall. Realistically, when should we start to expect any impact to numbers? And when will we get a bit more visibility on the financials there? And when would you communicate? And lastly, maybe it would be an opportunity to meet at this stage, but your '24, '26 period on your last guidance or strategic update is ending, obviously, this year. So are you planning anything to update the market on strategy, shareholder returns, maybe the opening of the NTO? Ignacio Madridejos Fernández: Thank you, Elodie. About the 407 and about the new toll rate announcement, I think that we have to see this about the toll rates in combination with the promotions because I think that many users in the Toronto area are benefiting from some of the promotions that we are doing, and we have to see all in combination. And I'm not aware about any -- I mean, relevant pushback to the toll rate increase and to the promotions that we are doing. What we are doing or plan to do during this year 2026, the focus will continue to be similar to previous year on peak hour as it was the case last year. But also we'll try to segment more and more, looking for better understanding of the customer behavior and how we can contribute to value to them and also to us to maximize. But about that, we need to learn. So it will be step by step, and we'll try to do some promotions and some activity to learn, but most of it, the bulk will be similar to previous year regarding peak hour. But as commented, we'll do other things to see how we can increase value to users and maximize EBITDA. NTO, as commented, yes, it was -- is now -- the contractor told us that they expect a date in the fall 2026. And yes, we have reviewed the schedule with the different milestones. And we have to wait until a specific date to opening. We are not going to give any financial information at least for the time being until they start opening and with the first numbers of NTO. And at that time, I mean, we'll start to communicate some number, not for the time being only communicate the opening date and the number of airlines that have signed user agreement or a letter of intent, not anything else for the time being. And yes, we are ending the Horizon 26 plan that this is the last year, but it's an important year. It's a '24, '26 plan. Many things that we need to deliver during this year, and that's the focus that we have today. Of course, after that, we'll, I mean, think or prepare a new plan that will work during this year and once it is prepared, we'll think about how we are going to communicate one thing so the plan will be communicated externally. But so far, I mean, we have not finalized the plan and not taking any decision about the communication. Operator: Our following question comes from Dario Maglione from BNP Paribas. Dario Maglione: Congratulations for an amazing 2025. I have 3 questions on the U.S. Managed Lanes performance. So on the I-66, Q4 was quite weak compared to Q3, it was the government shutdown. What kind of, let's say, revenue or traffic did you see in December after the government shutdown has ended? Do you see like a normalization of the trends or some weakness remained? Then on the LBJ, I was a bit surprised by the slowdown there, and you mentioned construction works. Do you expect this construction works on, I guess, feeding traffic roads to continue in 2026? And last question on the I-77 is that surprised me on the positive side against tough comps. Here, the revenue per transactions was very high, similar to Q3 despite much lower traffic volumes. Can you tell us more about why that is the case and whether this dynamic is sustainable in 2026? Ignacio Madridejos Fernández: Thank you, Dario. Regarding the I-66, yes, the fourth quarter was affected by the shutdown, 43 days, and also by winter weather that was worse than previous quarters. It affected mainly that mixed traffic and especially commuters at the peak time. So that was the main effect was related to that, that we have less commuter at peak that usually have higher toll rates than in other times of the day. Also, you have to take into consideration that the comparison of the fourth quarter is also we have a relevant increase in the fourth quarter last year with the dynamic prices that was communicated before by Ernesto in the quarter's calls. And so it was a tougher comparison also to consider. Again, as I commented before, we expect to grow the toll rates in the I-66 about inflation because of the value to users and the activity that we see in the corridor. LBJ, the problem is that we have construction that are around the LBJ in different projects that is not under our control. So in some cases, you see more impact depending where they are working and how they are affecting the number of lanes and the rest of the traffic. So it's very difficult to anticipate if one quarter is improving and other is probably a little bit deteriorating versus the previous one. What we see is that we expect because it's not our construction work, that it will be finalized by the end of this year. We don't know exactly when, it will happen in phases or it may happen that suddenly one quarter is better and then the next, we see some negative effect in our traffic because they are doing something specific. So it's very difficult to anticipate. Also by the end of the year, we expect that it will be back to normal. And it may happen that some quarters are better because the way they are doing the work is helping with the traffic. Anyhow, the whole, I mean, traffic back to the corridor will happen once the full construction is finished. And in the case of the I-77, remember also with the traffic, we have this comparison with last year, you remember, we have the closure of lanes because of the hurricane and that increased the traffic in the last quarter of the year. And even we have some effect at the beginning of 2025 that we'll see as a comparison. But in terms of toll rates, revenue per transaction, well, we'll continue understanding of seeing the value to users and try to get that value to us. And I think that has been good in some peak hours in the traffic. And because of that, we have been able to increase the revenue per transaction and at the end, maximizing EBITDA. As I commented, Charlotte is a region that is growing and especially in terms of new jobs in the U.S., and it looks that it has a good perspective in the following years. Operator: Our next question comes from Marcin Wojtal from Bank of America. Marcin Wojtal: I have a couple of questions. Firstly, just a follow-up on the NTO project, which is delayed to fall 2026. Is there any increase in the cost of the project for you? Is there any extra equity that you need to contribute? And is there any impact on your equity IRR due to the delay of that project? Question number two, if we could just perhaps go back to the 407 ETR dividend increase, which was very significant, 36%, I believe, in 2025. Could you just remind us how do you think about the dividend policy of that asset? And do you still consider the 407 ETR to be underlevered as it is today? And maybe if I can squeeze in one more regarding your U.S. listing, I mean, that is a recurrent question, but are you considering any further steps on the journey to become more of a U.S. company, perhaps a switch to U.S. GAAP accounting or any other steps that you are considering? Ignacio Madridejos Fernández: Thank you, Marcin. I will take the first one, and Ernesto will take the last 2 questions that you are asking. Regarding the cost, the project is substantially close to the budget numbers at this point in time. Our expectation is the deviation will not be material and it will depend on how successful are certain claims presented by the contractor. And as of today, we don't expect any additional equity funding for Phase A. The delay that we are seeing today is minor. It's a very -- it's a few months. So it's not affecting us the IRR. It's a minimum thing that it will not have any effect of the total project. But the negative effect that we have in this period of time is related to the revenues that we are not collecting, but no more than that, but the impact is minimal. Ernesto Lopez Mozo: Okay. Well, regarding the capital structure of the 407, I mean, really, the leverage should reflect the solid financial performance, right? And with the performance it has, it keeps getting headroom and headroom in ratings. And I mean, it doesn't make sense, right? The capital structure should be adequate to the current ratings, right, not get, let's say, an upgrade, right? So yes, that would follow that opportunity, as I mentioned in another question that was regarding the dividends for the 407. Regarding the U.S. listing, if we are looking to do U.S. GAAP or not, the market is not asking for that. Now of course, we've analyzed that. It could make sense going forward, and we have done our analysis to try and get ready. But I mean there's no current demand for that at the moment. So not in the short term, we won't be doing U.S. GAAP. Operator: Our following question comes from Jose Manuel Arroyas from Santander. José Arroyas: I have just one question, it's about the revenue sharing payments in the Q4, particularly at NTE and I-77. I found them a little bit above average, and I think they ended above the annual budget for both highways. Was there anything different in the Q4? Or was it just a recalculation for some particular reason of the annual provision? And then looking at 2026, I noticed that for I-77, you are budgeting about 50% increase in the revenue sharing provision for I-77. Why would that be? Or is it just a conservative assessment? Ernesto Lopez Mozo: Just -- I mean, as you mentioned, it was in line with the budget, the revenue share. But the fact was that the budget was being outperformed, right? And there was a catch-up in the accrual at the end. Going forward, it makes sense to do that more along the year, right, rather than reflecting the budget. So we should expect more correlation with the performance along the year as we do with the Schedule 22. But it just reflected that. Regarding the I-77 revenue share budget for next year, yes, the budget considers that there is a, let's say, a move into another bracket of revenue sharing. When that happens, there's an effect that it looks like a lot that then is not as that going forward, right? But when you get into a different bracket of sharing, you kind of get this effect because it looks into the accumulated stuff, right? So you can check that with the excels we provide that effect. But as I said, the year -- the following year won't be that substantial. It's just an effect of changing into a different bracket. Operator: And the last question comes from Cristian Nedelcu from UBS. Cristian Nedelcu: Could I please check the 407 loyalty plan that you talk about? Could you give us a bit more details? Does it mean more -- is the purpose to get more traffic, but you could give more discounts? Or how do you think about it? And can I also ask on the NTE that you mentioned the construction works will end at the end of '26. How should we think once that happens, how should we think a traffic accelerating versus less mandatory modes? So net-net, do you expect revenue still grow once construction ends? And the last one, there's a bunch of tenders for Express Lanes in the U.S. You made the proposal for the Washington Airport. There's a lot of CapEx there on the midterm and long term. And even if you take a 35%, 40% equity of that CapEx, you're talking about very large amount. So conceptually, can you tell us a bit how do you think about firepower? There are all these projects, but I guess there is a limit at some point, you cannot do all of them. Could you elaborate a little bit how you think about this? Ignacio Madridejos Fernández: Thank you, Cristian. About this loyalty plan, as commented, we'll continue with promotions in 2026. It was very positive from our perspective in 2025, helping us to maximize EBITDA. and we'll continue to do that this year. Again, the bulk of most of the promotions will be at peak hours, similar to what we did in 2025, of course, with the learnings that we had last year, we continue improving and trying to get more value to user, but also maximizing EBITDA to us. One of the things that we'll try is a loyalty program, but it's something that we'll see how it works. And similar, what we'll try to do is try to get some additional segmentation and learning and seeing how the users see the value. And based on that, we can do more segmented type of offers in the future. But again, bulk will be -- of promotions will be very similar to what we did last year, but with the learnings that we have because this is just the second year, we are continue learning. And of course, this is alone, I mean, during many years, I mean, we'll see more and more segmentation, more value to users and maximizing EBITDA for us. In the terms of NTE, yes, the construction will end by the end of this year. And what we'll see at that point of time is our expectation is directionally is that more traffic will come back to the corridor. As you know, what happens when you have construction and they see some congestion, then some of the traffic takes a different route that probably for them is shorter and some of the trips that we used to have, well, they disappear. Once the situation is back to normal, then we'll start to see more traffic. It will take some time. It will ramp up. They learn that probably they have savings taking this corridor versus the alternative that they are taking today. So we'll see more traffic. But also at the same time, with this more traffic at the end of the construction, we'll see less congestion because at the end, we are adding new managed lanes in one sector and one additional general purpose lanes in other sector. So there is more capacity in the corridor. It will bring more traffic, less congestion and probably less mandatory modes. We are not giving any guidelines about what effect that will have in revenues and you have to wait to see the numbers, how is the effect in the future. And yes, regarding the opportunities, as commented, we see quite unique pipeline of opportunities in the U.S., nothing that we have seen before. It's not -- as you know, we are bidding 2 managed lanes this year. The I-77 South next year. We see other managed lanes that will come very soon, hopefully, in Atlanta and Charlotte and Nashville, sorry, and others that we are working on the pipeline. Yes, as you know, we want also to expand airports in the U.S., something similar to NTO. There may be other opportunities. So it's quite unique in terms of pipeline of opportunities. And -- but at the same time, we are not expecting to win all of them. As you know, we are very disciplined from a financial point of view. And for us, it's not only growing, it's creating value while growing. But the firepower, maybe Ernesto can comment more about that. Ernesto Lopez Mozo: Yes. Thanks, Ignacio. Well, as we presented at the Capital Markets Day, and we tend to answer this, we usually don't have leverage at the ex infrastructure project level. But with good opportunities to grow, we could go to the leverage headroom that the BBB rating allows. We don't comment what are the ratios that rating agencies have. As a proxy, we have the -- our internal 2x net debt to EBITDA and EBITDA is composed of dividends we get from projects that have substantial potential and also the EBITDA from other businesses like construction. So that is the kind of proxy we use, and we could use that leverage for firepower. Operator: There are no further questions at this time. I will now hand it back to Silvia Ruiz, Global Head of IR. Silvia Ruiz: Thank you. Well, it seems that there are no questions in the webcast. So I will hand over to Ignacio. Ignacio Madridejos Fernández: Thank you. Thank you, everyone, for your participation in this conference call. And so now we close it. Thank you very much for your participation.
Delphine Deshayes: So good morning, everyone. I'm delighted to welcome you to ENGIE's 2025 Full Year Results and the medium-term outlook presentation. And of course, we'll have the pleasure to present in detail the acquisition of UKPN. We have 2 speakers today, our CEO, Catherine MacGregor; and our CFO, Pierre-Francois Riolacci. A quick view of the agenda for this morning. In the first part, Catherine and Pierre-Francois will review our results and the main events of 2025. In the second part, Catherine will lead us through UKPN's acquisition and Pierre-Francois through the valuation and the financing of the transaction. Then Catherine will present our medium-term outlook and Pierre-Francois, our capital allocation strategy before some concluding remarks from Catherine. Finally, there will be a Q&A session. We'll take questions from the floor and online. With that, over to you, Catherine, for the review of 2025. Catherine MacGregor: Thank you very much, Delphine, and good morning, everyone. Super pleased to address you here from London in what are truly exciting times for ENGIE. We have a packed agenda for you this morning. So I'm going to get started, kicking off with a very brief summary of our 2025 results. 2025 proved another highly active years. We have continued to establish ourselves at a utility. We like this word at ENGIE, which means that we are both derisked and growing, balanced both operationally and geographically, agile in seizing opportunities to our flexible and green power portfolio, a trusted partner in supporting our customers to achieve their decarbonization targets and on track to meeting this goal that we have to become the best energy transition utility. Performance in 2025, well in an unpredictable geopolitical political environment and with normalizing energy prices, ENGIE was able to extend its track record of robust financial performance with 2025 net income at the top end of the guidance range. We moved a big step forward in renewables with record new capacity and big ticket projects around the world. We ranked once again as the global leader in corporate PPAs. And in Belgium, we ended both merchant nuclear production and our exposure to nuclear waste liabilities. At our upcoming AGM on 29th of April, we will be proposing a dividend of EUR 1.35 per share, corresponding to a payout of 67% based on the current number of shares outstanding today. Summary of our headlines number. EBIT, excluding nuclear, was virtually flat at EUR 8.8 billion. Infrastructure was up significantly, driven by the positive impact of new tariffs in France and Europe as well as performance. Renewables and flexible generation was almost stable with a contribution from newly commissioned plants offsetting headwinds such as lower hydro volumes. Supply and Energy Management performed excellently on a commercial level, but was negatively impacted as market conditions normalized. And across our businesses, we have delivered on our performance goal, which we are very pleased with. Net recurring income group share amounted to EUR 4.9 billion versus EUR 5.5 billion in 2024. Cash flow from operations was up year-on-year to EUR 13.6 billion with substantial free cash flow from our networks and downstream activities. Really pleased with the resilience of our results, which show that our integrated model is able to deliver pretty much whatever the underlying conditions. Moving on to the next slide. 2025 was also a record year for new renewables and BESS with over 6 gigawatts of additional capacity around the world. We commissioned 2.4 gigawatts in the U.S., and that was led by batteries as we successfully rolled out the pipeline that was taken on when we acquired BRP back in 2023, but we also added 1.6 gigawatts both in Europe and LatAm and 600 megawatts in EMEA. Our truly global and balanced footprint in terms of operational capacity, plants under construction and pipeline is a unique attribute and provides us with the optionality and the agility to react to or even to anticipate headwinds or tailwinds in particular countries. We raised our renewable and BESS portfolio to 57 gigawatts by the end of 2025, at which time almost 8 gigawatt was under construction, continuing to execute on budget and close -- very close to schedule. We maintain our leading position in PPAs, signing 4.8 gigawatts in 2025, of which 3.6 gigawatts of corporate clean PPAs. 2025 was a pivotal year for ENGIE in Belgium. When you look at 2025, we started the year with almost 4 gigawatts of consolidated nuclear capacity, selling output at open market prices, almost 3 gigawatts of gas-fired capacity on 90% merchant and EUR 11 billion of waste management liabilities on our balance sheet. And we ended the year with quasi-regulated nuclear production at 2 extended reactors now co-owned with the Belgian government, no nuclear merchant output, no nuclear waste management liabilities, plus a new gas-fired plant at Flemalle and major new base units at Vilvoorde, both benefiting from capacity payment. The 2 reactors were reconnected to the grid on or ahead of schedule and Vilvoorde was open 2 months ahead. We have delivered and we stand ready to remain a strong contributor to the energy system in Belgium for years to come. With that, I'm going to hand it over to Pierre-Francois, who will summarize our 2025 financial performance. Pierre-Francois Riolacci: Thank you very much, Catherine, and thank you for those joining us here physically also in the webcast in a quite eventful release, of course. And 2025 was indeed a pivotal year for Belgium in ENGIE, but it is also pivotal for EBIT, EBIT excluding NUC that starts growing again more than -- after more than 2 years of energy market normalization and with very strong cash generation. So EBIT, excluding NUC, reached EUR 8.8 billion, which is a 2% organic growth, supported by a strong second half performance as expected, while net recurring income group share was EUR 4.9 billion, reaching the top end of our guidance. Turning to cash. We delivered cash flow from operations of EUR 13.6 billion, which is up EUR 0.6 billion compared to last year. That is a total of EUR 40 billion of CFFO generated over the last 3 years, which highlights the quality of earnings. CapEx decreased compared to last year due to some slowdown in the U.S. and as we have been also bracing ourselves for the announcement of today. Net financial debt is up driven by the nuclear agreement in Belgium. And at the same time, economic net debt decreased by EUR 2.7 billion, benefiting from our strong cash generation and some lower investment level. Importantly, our leverage remains firmly low with economic net debt-to-EBITDA at 3.1x, well below our 4 threshold, which offers meaningful headroom and which is supporting also a strong investment-grade credit profile. Finally, as part of our commitment to attractive and sustainable shareholder returns, we will propose a dividend of EUR 1.35 per share to be paid in 2026. This proposal is aligned with our dividend framework and corresponds to a payout ratio of 67% based on the current number of shares outstanding to date. Payout is up from last year to soften the dividend decrease versus EPS. It is a clear and strong signal that the group is willing to step away from the minimum range when conditions are met. We believe this deal -- this level is compatible with a sustainable dividend trajectory based on expected earnings growth. Let's now turn to the EBIT evolution. EBIT excluding NUC is broadly stable with some negatives and positive. On the negative side, ForEx and scope effects weigh driven by the impact of the Brazilian real and the U.S. dollar as well as some portfolio rationalization. We also recorded a sizable negative impact from prices and volatility, notably within Supply and Energy Management with a normalization of energy markets, but those impacts were partly compensated by the tariff increases in networks. Volumes were down, impacting mostly renewables and BESS with lower hydro and wind conditions in Europe. These headwinds were, however, offset by the continued execution of our strategy. Commissioning contributed to EUR 507 million, reflecting the ramp-up of new assets across renewables, networks and [ LEI ], and this illustrates the strength of ENGIE's growth engines. Our performance program delivered an exceptional EUR 823 million, driven by operational excellence and competitiveness initiatives across all GBUs. In that amount, we have fixed some legacy issues with underperforming assets for EUR 368 million. In summary, despite the headwinds of market normalization and weaker volumes, ENGIE's investment-led growth, combined with strong performance delivery has allowed us to maintain EBIT at a robust level. Let's now turn to Renewable and Flex Power with a 3% organic growth. Scope and FX is a headwind with negative impacts again from U.S. dollar and Brazilian real, combined with the coal exit and portfolio reshaping. Renewable and BESS delivered a 7% organic EBIT growth with momentum building in Q4. The uplift was driven first by our investments contributing for EUR 395 million, a clear proof point of execution quality and financial discipline. We are hitting our development objectives with a large organic component, keeping execution tight and CapEx overruns below 1%. Performance added a bit more than EUR 100 million. These positives were partly offset by the normalization of volumes in Europe with hydrology returning to more typical levels after an exceptionally favorable situation last year. Cash generation EBIT decreased due to continued and expected drop in capture spreads in Europe, but this headwind was partly balanced by favorable international price effects in LatAm and in Australia, alongside ongoing performance levers and some positive one-off in '25 for about EUR 140 million. Moving on to Infrastructure, which delivered a strong organic growth of 24%, clearly underpinned by networks. Scope and FX had a negative impact driven by the Brazilian real. Organic growth in networks reflects the outcome of new tariffs, solid execution of our performance plan and organic development. Our power transmission network has grown by 450 kilometers and biomethane production capacity connected to French networks increased by 12%, supporting decarbonization and the long-term relevance of our gas infrastructure. LEI EBIT was broadly stable with a strong Q4 contribution. Performance actions and development helped offset expected lower spreads for cogeneration, especially in France. For '26, we anticipate strong double-digit growth driven by performance and continued development. Overall, infrastructure is again a strong and predictable contributor to the group, supported by robust regulatory frameworks, selective investments and continuous performance improvement. Turning to Supply and Energy Management. The picture is consistent with market normalization, but resilient commercial dynamics. B2C EBIT stands in line with expectations. The organic decrease is due to last year's tailwind and one-off not repeating in '25. That said, commercial performance in Europe is good and the market still allows a full valuation of risks. So we are leaving '25 with a good momentum. In B2B, full year '25 EBIT includes about EUR 200 million of positive one-offs and about EUR 100 million coming from high commercial margins that were locked during the crisis, which will normalize this year in '26. So we expect an EBIT in '26 around EUR 900 million as a starting point for future growth. Energy Management EBIT reflected market normalization and lower market reserve releases last year. Results were also weighted by a minus EUR 95 million transport tariff one-off in H1, whereas last year benefited from a positive one-off linked to gas contract renegotiation. Big picture, SEM delivered on target. As we look ahead, '26 EBIT for SEM should land a bit north of EUR 2 billion. Energy Management is expected to revert towards a normal year in '26 with lower provision release than '25. The combined Energy Management plus B2B EBIT should be slightly above EUR 1.5 billion in '26, a number we mentioned a couple of years ago in summary, all as expected. Let's turn now to our performance program -- sorry, I'm going a bit fast, I'm missing Nuclear. It would be a pity. Moving on to our nuclear activities, little surprise. The decrease in EBIT is mostly due to lower volumes with the phaseout of certain units and the long-term operation outages, which started, of course, in '25. Now quickly on dismantling provisions. The group submitted its fine to the Nuclear Provision Commission, CPN, recommending a decrease in provisions of about EUR 1 billion linked to lower uncertainties and higher interest rates. In December, ONDRAF, the National Agency for Radioactive Waste, issued a nonbinding report suggesting a significant increase of the estimated overnight costs. ENGIE considers this opinion overly conservative and in some respect, inconsistent. Discussions are progressing and the CPN final opinion is expected no earlier than early April, which is, of course, a bit later than the usual calendar you are used to. The Belgian government is quite adamant to develop further nuclear energy and a regulation that provides a stable and trustworthy environment is a prerequisite. We are, therefore, confident a reasonable outcome will be found in the end. Let's turn to our performance program. In 2025, performance initiatives delivered an outstanding EUR 823 million of EBIT. Operational excellence contributed through concrete and recurring actions across all GBUs. Some examples, PPA renegotiation and asset optimization in renewables, contract portfolio cleaning and pricing improvements in ADI, lifetime extensions in Flex Power and of course, procurement gains across the organization. Under our culture and competitiveness plan, we are simplifying the organization with LDI removing management layer in France, while fragility actions curb spend on travel, consulting events and digital and support function efficiency is ramping up with somewhat significant plans. Contribution from loss-making activities is driven by stopping losses of EVBox but also improvement in some supply activities. Now on that field, most of the heavy lifting is behind us, has been executed, which means incremental effects on loss-making activities will be more limited in '26, '28, as you could expect. Key takeaway, 2025 marked a standout performance year. We expect additional gains going forward, but at a more normalized pace. Let's take a look at the main items driving net income. Recurring financial costs at EUR 2 billion are in line with expectations. Lower average cost of gross debt was offset by lower cash remuneration resulting from the decrease in short-term rates. Recurring income tax amount to EUR 1.6 billion with an effective tax rate of 25.5%, which notably includes the special tax in France. Nonrecurring items include restructuring costs for about EUR 0.3 billion and impairment cost for EUR 0.8 billion, a collection of midsized items driven by commodity prices decreases in France, disposals of some nonstrategic assets and U.S. regulatory reforms, leading to reported net income group share at EUR 3.8 billion. Moving to cash flows. Cash generation is once again very strong this year with CFFO of EUR 13.6 billion. It is worth highlighting the positive cash impact from the gradual phase down of our nuclear activities, which reduced working cap requirement by EUR 600 million. Across the last 3 years, ENGIE generated about EUR 40 billion in CFFO, providing the financial capacity to invest for growth and continue to reward shareholders with healthy dividends while retaining strong balance sheet headroom and our investment-grade credit. Let's finish with net debt. Our leverage ratios remain well within our targets with net financial debt to EBITDA at 2.6 and economic net debt to EBITDA at 3.1. Net financial debt increased, reflecting the cash out related to the Belgian nuclear transaction, but CFFO more than covered maintenance and growth CapEx while also funding dividends. Other items include EUR 1.4 billion of proceeds from disposals. You know our track record in that matter. CapEx came in low this year, reflecting a temporary one-off effect in the U.S. where the sell-down structures allowed us to monetize a large volume of assets developed in previous years. Those sell-downs came as a reduction of our growth CapEx. In addition, investment levels in the U.S. were reduced due to regulatory and tariff uncertainties in H1 and then with the government shutdown in H2 that delayed some permitting. Also, we have been preparing ourselves for our move on U.K. power networks that we have been working now for a while. Balance sheet continues to strengthen with a decrease in economic net debt, supported by working cap improvement and strong cash generation. This is it for 2025. And now back to Catherine to present the reason why we are here today, a move toward power network that has been weighted for a while with the acquisition of U.K. Power Networks. Catherine MacGregor: Indeed super excited now to cover the acquisition of U.K. Power Networks, which is truly the best-in-class power distribution network operator here in the U.K. This acquisition represents indeed a perfect strategic fit for us at ENGIE. In a nutshell, it fundamentally rebalances our group to be much more of an electrician. And what that means is that we will be from now on in a position to maximize our exposure to all the growth opportunities offered by the energy transition. Perhaps to start with a bit of context. In today's climate of political and geopolitical turbulence, energy is more than ever top of mind. It's about decarbonization still, but it's also about affordability, it's about security, it's about sovereignty. And in many places, it's actually a combination of the above. Our ambition at ENGIE with our balanced geographical and operational mix with our integrated structure is to be the best energy transition utility. And frankly, in the context I've just mentioned, I'm convinced that this goal is more relevant than ever. With the baseload coal nuclear closures, aging infrastructures, economic growth, technology explosion, the energy transition is actually accelerating, and it requires fast electrification. It requires the need for flexibility, but also support for development of green gas because remember, molecules are here to stay. Gas will be important in this energy transition, but it will also require massive grid reinforcement and deployment, a domain in which, frankly, it's fair to say ENGIE has not been so far very influential participant, which is what we are here to address. With the acquisition of U.K. Power Networks, we are given -- we are seizing this unique opportunity to participate in the tremendous growth journey in the field of power networks. And we are going to do so by raising the predictability of our earnings and cash flow by bolstering our presence here in the U.K., which now becomes our second largest country, a country where we do have a long-standing presence across the whole value chain with renewables, offshore and offshore production, green biomethane gas, pump storage with our first hydro asset, notably and also gas storage as well as supply and energy management for business customers. And with this transaction, we will deliver a transaction that we expect to be earnings accretive from the first year while keeping our commitment with an unchanged 65% to 75% payout dividend policy and maintain credit rating. U.K. Power Networks is truly the best-in-class regulated power distribution in the U.K. I have to say, my team and I, we have been so impressed by the quality of the people we have met. And I would like to salute UKPN's 6,500 employees who are represented with us this morning by Basil Scarsella, the CEO, who I'm delighted to have joining ENGIE. Thank you, Basil, and welcome. We share with your employee the high standards that you hold for safety, for performance, for decarbonation and for providing top-ranked service to your customers with a leading rank also for innovation. As the regulator recognizes, you guys are the best in the business. We are really delighted to have you on board and are thoroughly looking forward to working with you. You can count on us to approach the integration with a great deal of humility and respect as well as to bring a long-term industrial view of operating critical energy infrastructures. So for those who don't know UKPN, it operates 3 adjacent networks in London, in the Southeast and the East of England, being 1 of 5 power distribution operators or [ DLOs ]. UKPN regulated asset value amounted to GBP 9.2 billion in March 2025. Its network length is 192,000 kilometers, about 3/4 of which are underground. And in terms of connection, it ranks #1 at 8.5 million. UKPN RAV is expected to grow by an average of 4% per year in the final 3 years of the current ED2 price control to GBP 10.5 billion GDP in March 2028, with growth rates accelerating in the upcoming ED3 price control period and beyond on the back of sharply higher protects through the need to prepare what is generally aging grid to the challenges of higher demand, but also accelerating renewable connection given the U.K. net zero commitment for 2050. And you can see from this chart, I think it speaks for itself that U.K. Power Networks is a top-performing company and that's been consistent over a number of years, the result of 15 years of very hard work under Brazil leadership. Among its peers, it realized the highest return on regulated equity over the ED1 price control, which ended in March 2023 and continued after that as best-in-class over the 2 initial years of the 5 years ED2 period ending in March 2028. Also, UKPN is the only DNO expecting Totex outperformance during ED2 as a whole, a testament to the enduring quality and professionalism of its people. Now why are we making such a move in the U.K.? Well, we can see strong momentum for the energy transition in the U.K., where the 2050 net zero objective is actually bound in low and more generally for electrification. The numbers in this slide, they speak for themselves. I'm sure many of you know them already. I'll just quote a few. U.K. power demand is expected to double by 2050. The U.K. government targets 95% clean generation by 2030, which implies a 2/3 reduction of carbon intensity as compared with 2024. This requires stronger, longer transmission grid to connect offshore to demand centers, and it also requires distribution to connect solar, in particular with the end user. The National Infrastructure Commission stated last year that allowances for load-related U.K. distribution networks CapEx, which means new miles, could reach EUR 45 billion to GBP 60 billion GDP by 2050, and that is on top of business as usual investment. Recent renewable auctions show that these aims are actually being met with actions with actually a doubling in approval to a record 45 gigawatt of projects in 2025 with almost 15 gigawatts so far in 2026, in particular, the largest ever award of solar capacity. All impressive numbers to be sure, but above all, dedicated teams to serving the customer, which are the DNA of the DNO Brazil. The U.K. is a place with an energy regulation that we consider one of the best. We believe it is a mature, sophisticated regulation that aims at balancing the needs of the investors who need visibility, risk protection, adequate return on their investment and the customers who need reliability, good customer service and overall system affordability. It achieves this through a range of mechanism, including inflation and volume protection, an incentive mechanism to encourage Totex outperformance, connections delivery, reliability and customer metrics with some rewards being shared with customers. Ofgem's current regulatory price control period, which is ED2, is a little bit more than halfway through, and we're now in the preliminary stages of determining the regulatory parameters for ED3, which will start in April 2028. There are a few themes that are emerging. Energy transition, electrification, rising power demand provide once-in-a-generation opportunity, which is triggering a significant Totex acceleration expected into ED3 versus ED2. And then ED3 Totex is viewed today by Ofgem as strategic versus ED2, which is viewed more as just in time, which means there is a sense that anticipation will be needed, anticipating rather than leaving it to the last moment using a longer-term outlook, avoiding bottlenecks. And then meter connections such as solar, EV, heat pumps connected to distribution networks will also be a new and significant part of ED3. So in short, we are super excited today. We're looking forward with our new colleagues at U.K. Power Networks to fully supporting the U.K. in its energy transition journey. And with that, I'm going to hand it over to Pierre-Francois to talk about funding and valuation. Pierre-Francois Riolacci: Yes. Let me take you briefly at the heart of this transaction. And first, starting with the valuation. Can get the slide. Thank you. We are acquiring UKPN for an enterprise value of GBP 15.8 billion, which for the sole regulated business represents a multiple of 1.5x the estimated regulatory asset value at March 26. Many of you know these assets and this level of premium, of course, reflects both its exceptional quality and its strong long-term fundamentals, as Catherine just alluded to. It is also fully in line with the most recent transactions observed in the regulated power distribution sector, confirming the robustness of our valuation approach. I'm sure you all remember, we have been bidding on a similar asset, albeit smaller, a bit more than a year ago, and we are not in any shape or form, more complacent this time. At this price, the implied 2027 EBITDA, '27 will be the first full year of consolidation. This implied '27 EBITDA multiple is 10, including the contribution of unregulated activities, which is about GBP 100 million. As part of the transaction, ENGIE will acquire 100% of UKPN and therefore, will fully consolidate it. We expect closing around mid-'26, subject to the customary regulatory approvals and shareholders' approval of the seller. Based on legal analysis and based on precedents, we consider the nonexecution risk as remote. For those who are not familiar with UKPN, a few data points. UKPN is a serial outperformer in all dimensions of the U.K. regulation, and it is reflected in consistently solid results even if the yearly contribution in EBITDA, EBIT or net income can be impacted by the 2 years adjustment cycle of the regulation. Cash generation is another key feature. UKPN maintains a high level of CFFO at EUR 1.4 billion in year ending March '25 that funds all the investments. Total CapEx rose to EUR 1.3 billion in year ending March '25, supporting network modernization and growth. Importantly, this continued investment underpinning the Totex growth translates directly into the expansion of the regulatory asset value. Looking forward, the trajectory is equally solid. Over the period '26, '28, the company will deploy about GBP 2.2 billion of CapEx. And as a result, the RAV is set to reach GBP 10.5 billion by 2028. U.K. Power Networks is therefore expected to deliver GBP 0.8 billion EBIT in year ending March '26 with significant growth over '26, '28 despite the depreciation gap triggered from 2015 by the longer RAV depreciation profile. Overall, U.K. Power Networks combines a proven financial performance, robust cash generation and clear medium-term growth with the bottom line profit expected to increase at a mid-single-digit pace in the long run. Let me briefly walk you through how we plan to finance the acquisition. Given the existing debt in U.K. Power Networks for GBP 6 billion -- EUR 6 billion, which is intended to stay, we need to finance an equity check of around EUR 1.2 billion, which is fully covered by committed bridge loans. In the end, we will rely on a balanced mix of instruments, starting with around EUR 5 billion of debt and hybrid new issuance. In parallel, we intend to execute an additional EUR 4 billion disposal program by 2028, fully consistent with our disciplined portfolio rotation strategy. You know ENGIE's track record in executing disposals. To complement this, the group plans to raise up to EUR 3 billion of equity through an accelerated book building. This is a targeted action designed to reinforce our capital structure and support our long-term commitment to a strong investment-grade rating. We plan to execute swiftly subject to market conditions with a very clear focus on protecting shareholder value. The plan is defined: one, to optimize shareholder value creation measured by EPS accretion, supported by U.K. Power Networks contribution net of disposals and net of financing costs. and two, to achieve credit metrics in line with our strong investment grade in the long run. Importantly, post acquisition, we will retain significant financial flexibility, both in capital spending and in the management of our assets portfolio. This means we can continue to roll out our organic growth plans, notably in renewables and networks and deliver solid returns to shareholders without requiring further equity in the years to come. This point is, of course, critical. From a value creation perspective, the acquisition of U.K. Power Networks gives us further long-term growth opportunities in deploying capital in a diversified and friendly risk environment, improves our credit risk profile and decrease significantly our weighted average cost of capital. Now back to Catherine for the presentation of our medium-term outlook. Catherine MacGregor: Okay. So now that we have discussed the strategic rationale, valuation and funding of the UKPN, what does that mean for our medium-term outlook? So for the next slide and next numbers, we have assumed the integration of UKPN from July 1. So let me start with a quick strategic overview. Last year, we introduced you to the new ENGIE looking like this. It was a result of a fast-paced transformation that we've conducted over the past 5 years, resulting in setting and establishing a leading energy transition player with a market strength in renewable generation, a strong downstream customer business and infrastructures, which historically have relied on gas with an emerging position in power transmission. In parallel, we have, as you know, a deep cultural transformation underway around performance, efficiency, focus, financial disciplines. Our results are good proof points of our progress on this front. We have now a strong delivery machine. And with this transition, we have no intention of slowing down. Adding a major power networks business through U.K. Power Networks means that we no longer have a single growth pillar via renewable generation and battery. We actually now have 2. As can be seen on this chart, showing our total CapEx increasing in the next 3 years to EUR 34 billion to EUR 38 billion versus around EUR 31 billion in the previous plan with around 90% of that, that will be allocated on one side into renewables and BESS and on the other side, to infrastructures in pretty much equal proportion. So this means that while renewables and BESS will continue to grow pretty much at the same pace as before, power network expansion will now fuel growth in infrastructure. Zooming on networks, we will have a combination of gas and power, gas and power infrastructure that gives us actually the best of the 2 worlds. We're going to have growth and we're going to have cash flow. To unpack this, '25, '28 will see an increase of more than 1/3 in network RAV. And within this RAV, the weight of power should jump from single digit to around 1/3. That, of course, will support Networks EBIT, which should rise by more than half over the period and the share of power within Networks EBIT quadrupling to around 35%. Finally, and this is quite unique amongst our main peers, the cash flow generated by our networks businesses will cover the total CapEx in '26, '28. This is a great advantage, and it will allow us indeed to maintain the pace of our expansion in renewables and battery. As you will see from this slide, which shows that, first, we have a renewable pipeline that is both robust and balanced. Second, that the proportion of our pipeline that is secured in execution or in advanced development has risen by 21 gigawatt in absolute terms, which boosts the achievability of our 95 gigawatt target for 2030 and all the while maintaining a strict financial discipline in our renewable projects. Remember, we do not chase gigawatts for growth sake at ENGIE if the quality is not there. In addition, renewables and base cash flow from operation will rise steadily as new capacity opens, which means that they will require actually less contribution from free cash flow of other businesses. Finally, and this is really important, our integrated model continuously enhances and maximizes the value creation of our renewable and BESS to a very attractive degree. We can put an extensive list of levers to squeeze the very most out of our renewable and BESS assets over the long term as now we tend to keep them for the long run. Now on to the hot topic of data centers and to add some color to what I had mentioned back in November. In a nutshell, we do have quite a bit of what data centers want. We have an asset base and local presence to speed access to energy. We have the power to quickly deliver additional capacity through our renewables and battery pipeline, and we have an unmatched expertise in supply and energy management to optimize the tech and the data centers' energy competitiveness. We are building on these big advantages. And today, we have set a dedicated multidisciplinary data center team a few goals to 2030. We've told them you have to achieve 3 to 4 gigawatts of co-sited data centers, which are today supported by a truly global 6 gigawatt pipeline, as you can see on the bottom left of the chart. We ask them to enable directly 5 gigawatts of new renewables and battery projects and in direct supply business, 50 terawatt hours of power delivered to the tech and data center sector. Co-siting represents a significant value-creating opportunity for ENGIE through a certain number of levers. They include land, they include margin uplift for ENGIE's co-sited assets, for instance, through reducing urban node risk exposure or providing redundancy from thermal assets in Europe, also, of course, PPA power supply volumes as well as energy management services. We have built a partnership with tech companies over up to a decade in the supply of reliable, green and cost-effective power, which now results in long-term partnerships, for example, such as the one we have with Google in Germany. So this all sounds great. We're maintaining an impressive growth in renewables and BESS. We are adding the new layer of growth in power networks. We are turbocharging our position as a major supplier of energy to data centers. We are leveraging the value derived from our integrated model and our in structure. What does it all add up to? It adds up to stronger foundations and consistent earnings improvement. We are targeting a CAGR of 7% in EBIT, excluding NUC over '25 to '28. And our guidance range for '28 implies no less than about EUR 3 billion of additional EBIT versus 2025 from new investment, of course, including U.K. Power Network, but also from performance. You will always hear us talking about investment and performance. Here, we'll expect a substantial EUR 800 million to EUR 1 billion of EBIT impact from performance improvement in '26 to '28 from a variety of sources. We will continue to focus on operational excellence from our assets, driving this culture of performance, tackling structural cost inefficiencies that we continue to have to chase. Balance is a critical component of the new ENGIE profile or the new profile of ENGIE. Geographical presence is very much part of this, especially given the geopolitical context. We're present in 30 countries, but actually 10 account for over 90% of our growth CapEx with our top 5 countries being France, the U.K., Belgium, Brazil and the U.S. The U.K., as I mentioned, we become a second country at around 17% of '28 EBIT from 4% in 2025 with a presence across the value chain and now genuine critical mass. It really fits very nicely with our stated intent to make sure that we reach a sufficient size in our key countries. We want in our key countries to deploy our integrated model to have a sufficient size and to have a seat at the table. In the transformation towards our utility profile, we've always emphasized the need to improve our risk profile with greater predictability. And our plan is going to deliver just that. As you can see from this chart, with the EBIT share of regulated networks and long-term contracted business will rise from 42% in 2024 to 2/3 in 2028. The majority of the improvement will come from our own actions, notably the UKPN acquisition, the end of Merchant nuclear in Belgium and new essentially contracted renewable capacity. And as we move to fast forward mode, what will ENGIE look like by 2030. With the added directions and accelerated investment that I've just mentioned, our new plan allows us not only to reiterate our key operational targets in Renewables and Flex Power and in Supply and Energy Management, but also to completely transform our exposure and our ambition in infrastructure with a substantial EUR 60 billion of RAV and capital employed in networks. I'm really excited at the new potential that this plan brings, not just in terms of the additional growth, but also in terms of the nature of this growth. This gives you a perspective of the growth potential that we are going to carry over beyond our guidance overview, which today is 2028. This guidance look like that. We have a solid plan to grow earnings and cash flow, which is a prerequisite to our capital allocation framework, which remains unchanged. It will be covered by Pierre-Francois. We expect a range of EUR 4.6 billion to EUR 5.2 billion for 2026, the midpoint of which corresponds to the level we achieved in 2025 with steady upper mid-single-digit increase in '27 and '28. Our dividend policy remains at 65% to 75% of net recurring income group share, and we maintain our policy of maintaining a strong investment-grade credit rating with an economic net debt to EBITDA ceiling at 4x. Thank you for your attention. And now back to Pierre-Francois for the continuing ballet. Pierre-Francois Riolacci: And you still have some energy left because the upload is not completely over. We met a year ago in the same room actually for the market update. I'm very pleased to tell you that our revised 3 years projections are very consistent actually with what we discussed a year ago, boosted, of course, by the acquisition of U.K. Power Networks. First, let me highlight the key metric driving this outlook. I think Catherine just mentioned it, we are targeting a 7% CAGR in EBIT excluding NUC over '25, '28, and this trajectory reflects both the solidity of the existing portfolio and the contribution from UKPN. EBIT will rise from EUR 8.8 billion in '25 to EUR 11.3 billion in '28. As you can see on the waterfall, FX and energy price volatility have negative, but at the end of the day, limited impact in the period. For the record, these headwinds are stronger than a year ago due to the U.S. dollar depreciation and also some lower prices -- power prices in France. But we can offset all of them in '26 and all of it in '27 -- sorry, half of it in '27 at EBIT level, showing the resilience of our portfolio and hedging strategy. These headwinds are fully offset at the bottom line. Disposals include the program to finance the acquisition of UKPN. Performance initiatives will contribute positively, reflecting continuous progress in operational excellence and cost discipline. A significant uplift will come from investments, adding between EUR 2.7 billion and EUR 3.1 billion of EBIT, excluding U.K. Power Networks and CapEx cut related to the acquisition, contribution from investments would amount to EUR 1.6 billion to EUR 2 billion, which is back in line with last year's market update. Investments are concentrated in our key growth platforms, power networks, renewable generation and batteries. Catherine has already flagged our continued efforts in performance that will bring close to EUR 1 billion yearly EBIT contribution in 3 years. Overall, this trajectory demonstrates our strong capacity to combine growth, resilience and disciplined execution also to leverage our integrated model. Moving on now to the cash equation. You are familiar with this format, and we have split this time in 3 blocks: 2025, which is a strong year of excess cash generation, plus EUR 2.8 billion, which is not accidental. U.K. Power Networks financing that I have detailed earlier and then the usual 3 years projections, including the new cash flows and the new investments of U.K. Power Networks. You can add that up as you wish. I tend to look as a whole. To a limited extent, we have decided to reprofile our assets portfolio and CapEx plans to allow, as it was the case before, for a moderate increase of the debt on top of the acquisition in such a way that our credit ratios stay within our targets. Sustainability of our financial profile is part of our utility status, both for credit requirements and shareholder returns. Looking to '26, '28, sources of funding include EUR 37 billion to EUR 41 billion of CFFO and an additional EUR 2 billion from disposals. So there will be EUR 6 billion in total disposal, EUR 4 billion, which are linked to the acquisition, 2 which are in the 3 years plan. This will finance our growth and maintenance investments for EUR 34 billion to EUR 38 billion and dividends and other commitments for EUR 12 billion to EUR 14 billion. As a result, net debt will increase slightly. This is not substantially different from the cash trajectory that was presented during last year Market Day. In other terms, the acquisition supports our strategic trajectory without altering the strength of our cash profile. Let me now walk you through how we are rebalancing the group further towards regulated infrastructure and more specifically power networks. Over the coming years, we expect a substantial step-up in networks capital employed, moving from EUR 25 billion today to around EUR 45 billion by 2028. In that same year, power networks will represent half of the group's networks capital employed. This reinforces our strategic focus on electricity infrastructures. On the right-hand side of the slide, you have details on the group's capital employed. We expect it to grow from EUR 69 billion end of '25 to around EUR 100 billion by 2028, with the largest contribution coming from networks. This rebalancing increases the share of regulated and long-term contracted activities, further derisking the group's earnings profile. Overall, this strategic shift enhances visibility, supports our investment-grade positioning and creates the conditions for sustained profitable growth. This is not something to be missed when you are assessing the WACC of ENGIE in your investment case, which is a good segue to turn to ENGIE's risk profile, credit metrics and net debt position. As Catherine alluded to, risk profile is improving structurally, thus reducing our cost of financing and also making credit metrics requirements less demanding. Target structure of our financial debt post acquisition as it is displayed on the screen, includes ENGIE's financial debt as of December '25, plus the senior debt linked to U.K. Power Networks acquisition for approximately EUR 2 billion and then U.K. Power Networks financial debt as reported in its 2025 financial statements. On that basis, bonds represent 2/3 of borrowings with a smooth maturity profile and no concentration peaks. With 91% of net financial debt fixed rate, we are largely immune against interest rate fluctuations. Net debt is predominantly euro-denominated complemented by GDP, U.S. dollar and Brazilian reals exposures that naturally hedge the group's operating cash flows in these currencies. Finally, on the right, you can see our economic net debt-to-EBITDA ratio. The ratio goes above 4 in '26 because U.K. Power Networks only contributes to 6 months of EBITDA, but it immediately reduces below our first ceiling in '27. Despite the enhanced risk profile of the group, we keep this 4 ratio reference unchanged. We have significant financial flexibility to manage this ratio going forward, if needed, First, we have flexibility on our EUR 34 billion to EUR 48 billion CapEx program with around 60%, which is uncommitted as we speak. And secondly, we can go a bit further when it comes to portfolio rationalization. Overall, our improving business mix, disciplined funding strategy and strong balance sheet provide ENGIE with a solid and resilient financial foundation for the years to come. Turning now to EBIT drivers by activity. This slide shows a balanced and diversified foundation of our growth over '26, '28. Starting from an EBIT, excluding NUC of EUR 8.8 billion in '25, we expect to reach EUR 10.3 billion to EUR 11.3 billion by '28, more than twice our EBIT in 2021. Beginning with Renewables and Flex Power, EBIT is expected to reach between EUR 2.8 billion and EUR 3.2 billion by '28 for renewables and batteries. Growth here is primarily driven by investments in renewable assets and battery storage complemented by performance actions. Conversely, gas generation should decrease from EUR 1.1 billion in '25 to roughly EUR 0.6 billion in 2028, driven by prices and disposals linked to the streamlining of our international gas generation portfolio. In Infrastructure, we see a solid EBIT uplift for all activities. Power Networks is expected to reach EUR 1.6 billion to EUR 1.8 billion in '28 with the acquisition of UKPN, but also organic development that goes along with it as long as our development in LatAm. Gas Networks should benefit from investments, performance actions, inflated RAV and tariff indexations to land between EUR 3 billion and EUR 3.2 billion in '28. And finally, local energy infrastructure should grow and reach now EUR 0.6 billion of EBIT coming from performance and investment in long-term constructed district heating and cooling networks. Last but not least, in Supply and Energy Management, EBIT should benefit from continued growth and performance initiatives. On the other hand, we'll face some headwinds in '26 in B2B with a progressive phaseout of legacy contracts lock in at high margins. I mentioned that for the '25 results and positive one-offs in '25, same. This results in expected EBIT ranges of EUR 0.5 billion to EUR 0.7 billion for B2C, EUR 1 billion to EUR 1.2 billion for B2B and EUR 0.5 billion to EUR 0.9 billion for Energy Management in '28. Let me now remind you how our capital allocation choices underpin both our growth ambition and our financial commitments. Our framework is built to deliver predictability and long-term value creation for our shareholders. Everything starts with strong cash generation, everything. Over the last 3 years, we generated EUR 40 billion of CFFO, and we plan to repeat that performance of close to in the next 3 years. Two activities stand out. Supply and energy management with a CFFO net of CapEx, all CapEx of about EUR 2 billion per year and growing. [ Gas Infra ] with again strong cash generation and limited growth CapEx, delivering on average about EUR 2 billion of cash flows after all CapEx. This consistent and predictable excess cash generation of about EUR 4 billion a year is a distinctive strength of ENGIE and clearly set us apart from the competition. One point worth of attention is that renewables and flexible cash generation is growing consistently, funding an increasing share of its investment plan. The acquisition of U.K. Power Networks reinforces our ability to deploy capital based on risk-adjusted returns where we can capture the most value and it is enhancing also our portfolio of investment opportunities. In parallel, we continue, of course, to optimize our existing asset base and drive operational performance across the group. Our performance plan ensures that value comes not only from new investment, but also from better management of existing assets. So this translates into an improved risk profile, more flexibility in credit requirements and a reduced cost of capital, combined with a broader set of investment opportunities and strong cash generation profile, it supports balanced long-term growth and therefore, sustainable, predictable and increasing shareholder returns. Let's finish with our '26-'28 financial outlook, which provides, I think, a clear line of sight on the group's earnings trajectory. Starting with '26, we expect EBIT, excluding NUC, between EUR 8.7 billion and EUR 9.7 billion. This reflects continued operational momentum, early contribution from our investment program and the ramp-up of performance actions. EBIT also includes 6 months of U.K. Power Networks contribution. Those tailwinds are partly offset by FX and the phaseout of high-margin B2B legacy contracts. By 2028, the rise in EBIT will mostly come from organic developments stemming from investment and also, of course, performance, while disposals impact will peak at year-end. EBIT, excluding NUC, should be in the range of EUR 10.3 billion, EUR 11.3 billion. Over the period, net recurring income will rise from EUR 4.9 billion in '25 to EUR 5.2 billion, EUR 5.8 billion in '28. Recurring net financial costs are expected to increase from EUR 2.2 billion to EUR 2.4 billion in '26 to EUR 2.6 billion to EUR 2.9 billion in '28, reflecting the acquisition of U.K. Power Networks. Recurring effective tax rate should land between 20% and 23%, a decrease versus '25 as the Belgian nuclear transaction allow us to retire long-standing tax frictions and also as our profits are growing in geographies with no material tax impact on P&L. This sequence is consistent with our ambition to deliver a sustainable growth of EPS year after year. Excluding the U.K. Power Networks perimeter, the outlook is broadly unchanged compared with the guidance we presented last year. This is important. The underlying performance of our existing business is fully in line with expectations, and the acquisition simply adds incremental value on top of it. At the bottom of the slide, we reaffirm our dividend policy alongside a strong investment-grade rating. With that, back to Catherine for wrap-up. Catherine MacGregor: I just wanted to go back to the capital allocation framework that Pierre-Francois just presented as we have been strictly adhering to that over the last 5 years. It's very important at ENGIE. It's actually the cornerstone of our management practices. It's well embedded throughout our organization. We are maximizing our cash generation. We are prioritizing our commitment to our shareholders. We're maintaining the strength of our balance sheet, and that allows us to size our net investment, including growth CapEx and disposal program. And with the funding plan that we've laid out to you today with this acquisition, we are going to be able to maintain our investments in the rest of our businesses, which, by the way, will not be much impacted nor disrupted by the integration efforts that we expect somehow limited, especially when you consider the size of this transaction. So you can think of the acquisition of U.K. Power Networks as even more opportunity within this framework, more opportunity for capital deployment, more earnings, all this with a better risk profile and a lower WACC. Last words, you may have seen an announcement regarding our governance yesterday. I just wanted to bring it up because it is a sign of both continuity and well-planned transition. I think it's important because it highlights the quality of the governance at ENGIE, which is an asset in itself and does contribute to the performance of the group. For this, but also for their general support to ENGIE and to me personally, I would like to thank the Board of Directors and its Chairman, Jean-Pierre Clamadieu. Whatever the challenges ahead with the incredible talented teams that we have at ENGIE and soon to be joined by the 6,500 U.K. Power Networks employee, let me tell you that at ENGIE today, we look to the future with great excitement and confidence. Thank you very much. And now I will pass it on to Delphine for the Q&A. Delphine Deshayes: We now have the Q&A session. We'll start by taking questions from the room, and then we'll take questions from online. Operator, could you please remind our online participants the process for asking questions? Operator: [Operator Instructions]. Delphine Deshayes: Thank you. So we'll start by the room. Wanda. Wierzbicka Serwinowska: Wanda From UBS. Congratulations on the deal, amazing deal, I must say. Two questions from me. The first one is on the ABB. Do you need the agreement from the French government? Will the French government participate? Is it a must? Can they block the deal? Any comments on that one would be appreciated. And the second question is about the disposals. I mean, what are you going to sell? Do you have any preferences and businesses and regions that you want to sell? And I do appreciate you show EBIT, but what EBITDA do you expect to basically drop? Catherine MacGregor: So all the financing plan that we have laid out to you, obviously has been approved by our Board of Directors. As for the participation of the state to the operation, I think you will have to ask them. I can't really comment on their behalf. In terms of the disposals, maybe just first of all, we do have a long history at ENGIE of disposal. First of all, in terms of execution, we have, I think, shown a good track record. Last year alone was EUR 1.5 billion worth of disposals. So in terms of track record, we feel confident with the plan that we've laid out, even though it's a little bit more in terms of run rate at EUR 6 billion. In terms of details, obviously, you will understand that we're not going to give much color because we don't want to jeopardize the sale conditions under which we will conduct these disposals. But we do have still at ENGIE quite a bit of flexibility. We have, for example, a number of -- so frankly, 3 themes that we have in mind. One theme, which is a number of assets where we are participating, but we don't have necessarily the full operating control. These assets, when you look at our strategy to be much more of an industrial operator are a little bit more now on the edge of our core strategy. So that could be something that we consider. Another option, another theme is we do sometimes have assets where we could be opening up to minority. And so that will be also another theme under this disposal list. And the third list, which is the work that we've been doing now for years at ENGIE, which is a little bit of a housekeeping of our portfolio when we have entities or activities that are not core to our strategy and then typically we will fall under that. And we've done actually a number of that last year. So that's really the 3 themes that we are considering in our disposal plan over the years to come. Pierre-Francois Riolacci: And to your question about the EBITDA impact, I mean, we don't disclose that. But I think if you use a proxy of the usual EBITDA to EBIT conversion of the group, you will be on the high side of EBITDA. Wierzbicka Serwinowska: And just to confirm on the French government, you discussed this acquisition with the French government. There is no way they can block it. Catherine MacGregor: The French government is represented on the Board of Directors. Delphine Deshayes: Okay. Arthur, second row. Unknown Analyst: The first one are on the financial targets to 2028. Given you are now quite used to over deliver, I was wondering -- I would like to understand if there is any area of conservatism in your targets. So there are 3 questions that I have on the bridge between '26 and '28 on EBIT. One is on the disposal dilution. I think you assumed EUR 0.7 billion, which for the proceeds that you intend to have, it seems to imply quite a low multiple. The performance contribution seems also quite lower to what you've been doing so far in the plan? And then there is a last block of EUR 300 million negative, which is called other, which it's not really clear what it is, if you could give some information on that? And the second question is just on the indications you gave in the press release on the contribution of U.K. Power Networks to the net income. As far as I understand, that contribution is before the impact of the cost of hybrid and potentially before the potential PPA as well of the deal. So I was wondering if you could just give some information on that as well. Pierre-Francois Riolacci: Thank you. That's a very precise question, Arthur. I can see that you are already working on your model, which is, of course, the right thing to do. Yes, there is -- so first with the '28 target and the bridge from '25. We -- of course, there is a whole set of assumptions behind the EUR 700 million negative impact on disposals. Catherine mentioned there were different buckets. Indeed, in these buckets, there are a few which are minority stakes that we own in some assets. And therefore, you can get a very high multiple on the valuation because what we are recording in EBIT is only the net income that we can consolidate. And therefore, that will drive a significant multiple when it comes to valuation. So part of it is there. So -- and that's also we are -- we don't want to be too granular on this multiple because we want to retain flexibility on the assets we put in there. And we will, of course, along the way, give you more colors and the impact as we make a decision. We will be value driven for this disposal. We know that we have done already a lot of cleaning in our portfolio. So we have already assets that we are pleased with, and it's really a valuation arbitrage that will come. So please give us a bit of flex. But clearly, this multiple is reflecting the high multiples for some of the disposals. Performance is low. I'm not sure this is the opinion of everyone in the organization, but EUR 0.8 billion to EUR 1 billion is still a big number coming every year. Of course, it's low compared to what we have achieved in '25. But remember, the loss-making activities you can -- once you have fixed them, you cannot fix them again. And so it's much more difficult, so to address it. Now can we do more than EUR 0.8 billion? Let's first try to get at the top end of the number. And then let's see if we can do better. I mean, clearly, the push for performance is not stopped. And you've seen -- I mentioned that briefly on '25. When you look at the guidance, we have been able to close some of the headwinds that we have on FX and energy prices. We did it through performance. So I think that's important. And then in other, there is a minus 0.3 billion. There are various topics. It's a small number, 0.3 now for ENGIE. And again, you need to leave us a bit of intimacy in our numbers. And if we want to put something to make sure that we deliver, it's also, I think, a decent right of ENGIE to put some numbers in there. Now it's funny what you say about overperforming. This is a discussion that we have with U.K. Power Networks. And I think they say that is underpromise, overdeliver. I like that a lot. So I think that this is a culture fit is there, and we will do everything we can, of course, to achieve. But if we can, of course, over deliver. For the contribution, no, indeed, hybrids are not in there. So hybrids, I mean, you can work it out by yourself. I mean if we issue hybrids, you know the cost of hybrids. You know the market today is pretty lenient and very, very competitive. Our last issuance on hybrid was extremely strong with no new issue premium. So clear, it's today a buoyant market, decrease the cost. And then there is let's say, a tentative PPA embedded in this number. So we've done our work, of course, to try to assess what would be the impact of the PPA, and that is factored in the numbers. Please give us also a bit of flex because the PPA is a big thing and we will have to go much further into details, but we've tried to give you an indication. James Brand: James Brand from Deutsche Bank. Congratulations from me on the deal. I have 3 questions. Firstly, your ambition to have more power networks. Is that now satisfied with this deal? Or if another deal came up that was very attractive, would you attempted to do even more, partly the market reaction seems to be -- seems to like this kind of move from you? Secondly, on the performance plan impact, it did actually seem like quite a good number to me. I was wondering whether you could give some more details because companies often throw around kind of big numbers for cost cutting and things like that or performance improvement. So within that, if you could give us some kind of indication how much is kind of cost cutting, how much is loss-making businesses, if there are any left, how much of it is kind of running your equipment better because of best-in-class performance and things like that, that would be super interesting just to get an idea of what's driving that. And then thirdly and finally, if we do see all this demand growth that everyone is talking about coming through in Europe and globally because of data centers and electrification, we're going to need new gas-fired generation. And you don't seem to have any -- or certainly not much capital going towards new gas build, if any, in the plan. So just kind of wondering what -- is that because you don't want to invest in that area because you think renewables is the future? Or would you need more regulatory visibility? What could push you into investing more in new gas? Catherine MacGregor: Okay. I'll start with 1 and 3, and you can comment a bit more on performance plan. Maybe on the power networks, we have a few years now to digest what we're doing with the U.K. power networks. I think, frankly, one of the really exciting things about the operation today is that it's of a large size, which means that in another scenario, we would have had to do quite a few of small deals, which means a lot of things and disruptions and you have to do it in several places in this. By doing it at once, it's sizable, but it really will allow us to have our work done for a few years at least in the distribution world in power networks with this superb asset that we are acquiring today or that we will acquire at closing with quite a lot of challenges to accompany the growth. The ED3 plans are very ambitious. So U.K. Power has a lot of work to do, a lot of investment. And so we feel that it's going to be from a power distribution point of view, very nice, and I don't expect that to -- I don't expect that we have to do something anytime soon in power distribution. On the transmission side, the plan that we have, which is to continue to do organic development in Latin America, that will probably continue as long as we can continue to win auctions. The auction is sometimes quite competitive. So we remain very disciplined in the way we participate in these auctions, and that should continue as expected. But I want to highlight the fact that the fact that this transaction is really of a good size is actually for me a great benefit because it allows us to do a one-off and now we can get on and do the growth with UKPN and the growth in the rest of the business with our 2 levers, which I think is a great position to be in, frankly. On demand growth and what we do with the gas-fired generation, I know it's not very fashionable, but we continue to be set to be net zero to 2045. And so we're going to be very careful with our CO2 budget. And we will do -- so we're really very focused in maximizing the CO2 to EBIT ratio at ENGIE. So we are pragmatic about energy transition and about CO2, but we are committed to decrease our trajectory. And we believe that today, when you look at the requirement on power, there is a lot that we can do with smart renewables, with the right technology, with the right battery, with the right integration, with the right energy management expertise, which is very -- we didn't talk too much about energy management today, but we have a differentiated at ENGIE with top-notch energy management capabilities. And these people are able to integrate the renewable and really green assets in order to provide customers what they want to do to the most part. Now it doesn't mean that every so often, if there is an opportunistic investment opportunity, we would be looking probably at the right CRM. We would like to have a capacity remediation mechanism because today, everybody loves gas. I don't know that in 5 years, everybody will love gas again. So we will need to have a fairly low-risk investment proposition as well, of course, as the right return. And then we might look at it from one project to a project, but it's not going to be a big chunk of our CapEx going to those assets. But the Flemalle is a good example of that, right? In Belgium, we're just opening up 850, 870 megawatts. So it's a very large asset that we built from scratch. So we've been able to do that. We're happy. It's a CRM-based remuneration. So we might do a few of that, but it's not going to be a big indeed investment proposition. We think we can do much more with renewables, batteries and also speed, as you know, for this in terms of delivery and just execution with the renewables and batteries are just unbeatable today, especially with the supply chain situation on gas plan that you know very well. So performance plan, Pierre-Francois? Pierre-Francois Riolacci: Yes. Performance plan, first, you may notice that our performance number, you can track them into the waterfall of EBIT. And that is critical for us because we are not buying huge performance actions, which are not translated into your variation of EBIT. So we need to be -- and that's a discussion that we have internally as well. It is demanding, but it is also key if we want to be credible when we put these numbers in front of you. So they are real contribution to EBIT, whether they are cost cutting, efficiency, whatever, they need to convert into P&L, and we need to be able to track it and you are able to track it. Now if you look at the big number, you have about still 10%, which are related to loss-making activities. This is going to come in '26 maybe early '27. But -- so that would come quite early. And of course, we have action plan, which are already launched and the execution risk is very limited. Then we have about 40%, which are the usual operational efficiencies that you have seen many times now in ENGIE for years, and they are coming through. And there is still a lot of room because, of course, we got a lot of traction when the GBUs, global business units were created because there was standardization, professionalism, some common tools which have been able, of course, to -- we have been able to leverage to deliver efficiencies. But it is by far not done. And we are also investing a lot. And when you invest a lot, you create new opportunities to, of course, improve your efficiency because you get more scale effect, you enter new operation, which are not at the same level. You have maturing projects, which are getting not at the top and they need more time to get at the top. So for example, when you see the commissioning contribution, you have the commissioning of year 1. Then year 2, you don't see it. But in year 1, you're not at the top of your efficiency. So you get more coming from the improved performance on growth. So growth helps actually to fuel further performance. And then we have half of the amount, which is what we call our C-squared, competitiveness and culture, where we are addressing some other pockets. And the big -- so we mentioned agility, we mentioned some frugality, but the big topic is about efficiency and efficiency, especially in the G&A, in the support function where there is still a lot to be done in ENGIE. Catherine would say we just started to scratch the surface, maybe... Catherine MacGregor: I say that. Pierre-Francois Riolacci: We've been a bit. But we are not at the end, even not at the beginning of the end. We are maybe at the end of the beginning, and that's already general. So there is more to come in there. I mean, some basics. I mean, we started, I mentioned that already, our big SAP project to have basically one ERP in the company, except for regulated assets. And that was started in '22. And today, we are rolling out at pace. By the way, project on budget, on time, which is not always the case of that kind of project. So very, very pleased with the outcome. But we are in the middle of rolling it. So there is more to come. And of course, it's paving the way to a new G&A approach. And we have now launched a big global business support project with significant moves. I mean, it is happening in ENGIE, that we are actually revisiting our existing GBS operations in some countries like in France and Belgium and moving some of the activities towards Romania. So this is happening as we speak. And of course, there will be delivery coming throughout the years. That's why it's a plan that needs to be carefully managed. It has to be done in a proper way progressively. And maybe some of you would love to see more coming at once. But for us, it's very important that we commit to this delivery year after year. And we prefer to take our time, but launch something which is solid and which is going to deliver for years. And to that note, this is not ended in '28. I mean, we had that conversation last year in '27, say there will be more in '28. Of course, year 3 is always lower than you year 1 and 2 because people tend to be a bit conservative. And then you need to fuel more projects and then you find new ideas. And then, of course, it's an ongoing revisiting. So very optimistic about performance. This is an engine which is going to be there for a long time. Catherine MacGregor: And we bring along our social partners. That's the particularity of our footprint, is that we have very rich union representation. And so the key for us is to add this transformation and the performance actions is to bring along our social partners, which the team is really working very well to do so. Delphine Deshayes: So we'll now take some questions online and then we'll come back to the room. So operator, could you please start with the first question? Operator: First question is from Ajay Patel, Goldman Sachs. Mr. Patel's line got disconnected. So the next question is from Louis Boujard, ODDO. Louis Boujard: Congratulations on the operation. Maybe two on my side to focus a little bit on UK Power Networks and what we can expect going forward. Looking at the historic earnings contribution, it has been quite volatile, most likely because of the current situation in the energy market, which has been relatively tough and also because of some catch-up effect that could be expected. How shall we forecast going forward, the EBITDA and EBIT contribution of this business? Is it going to be a bit more steady growth pace going forward? Or do you have also a lot of catch-up to be expected in the EBIT line for this contribution going forward by 2028? And could you maybe give us a bit more granularity on the geographic scope of your power network contribution in EBIT by 2028 with regards to the Latin America contribution as well? And maybe if you could also elaborate regarding the potential synergies that could be expected with this operation. Do you think that eventually there is room for, more business to be developed, notably with energy transition-related activities and other business that could be used from this operation going forward? Catherine MacGregor: Maybe I'll start with your last questions, and then Pierre-Francois can comment a little bit about the first part of the question. So in terms of synergy, given the regulated nature of the business, obviously, in our business plan and assumptions, we have a very, very small number. That makes sense. Now, we do obviously, will expect to drive a few synergies around IT, insurance and procurement, of course, in these areas, which are as expected. By the way, the fact that we have not priced that much synergies is also a nice illustration of what we expect in terms of complication of integration. And we don't expect any difficulty and that's, I think, reflected in that number. And then there is, apart from the regulated activity, Louis, there is indeed a nonregulated activity with a very long-term contract, which can span over 50, 90 years. And these contracts are interesting. Right now, we are -- we've not -- we valued them at 10x EBITDA. So we'll have to see as we work with the team of UKPN, if there is, indeed a potential for more growth. But right now we have taken, let's say, a moderate view of the potential of this business. It will have to be looked at. And then in terms of other synergies, not in the numbers, but really for us, it's about making ENGIE much more of an electrician. And what that means is that we expect over time to be able to learn from UKPN and to develop a culture and understanding of the distribution activity, expertise competency that eventually maybe we will be able to reuse in other places. Again, I'm putting my arms there because I stay true to what I said earlier. Short term, we're very happy and we'll be content with this acquisition. But to develop a distribution expertise is obviously something that we look forward through with this acquisition as an outcome. You want to talk about UKPN? Pierre-Francois Riolacci: Yes. Thank you. Good question, Louis. Yes, you're right. I mean, there is volatility in EBITDA, EBIT and net income in UKPN. We are familiar with that because you know that we have also regulated gas assets and they feel the same way. Of course, regulation is different. There is some kind of catch-up in France which is yearly, but then you may actually go for a catch-up, which is in the following revision period. So it's even more than that. This is something that we have discussed. Yes, they are regulated business. They are very stable. But there is some unpredictability indeed in the fine-tuning of the results in any one year. It can happen. So we're going to have to put head around this. We are prepared for that. We need to also create a bit of space to manage these uncertainties. Hopefully, in a few years' time, there will be this new standard, which is long awaited, which is a regulated business. And that will allow to smooth this catch-up effect. And that will be welcome. And clearly, again, we have a lot at stake in our existing gas operation today. But there is no -- to your point, there is not a big clawback sitting that is going to reverse in the next couple of years. It's just a normal course of business that we expect. And then on your point about LatAm contribution, I mean, today, you know that the contribution of power today is in LatAm. So you have a good proxy where we stand today. This will be growing. And it's fair to say in '28, there will be growth compared to where we stand today, and I would expect this to be north of EUR 300 million contribution in '28 for the LatAm assets. Catherine MacGregor: And it will be mainly Brazil and to, a lesser extent, Chile and Peru. Pierre-Francois Riolacci: Brazil, by far, being the first one. Operator: The next question is from Bartek Kubicki of Bernstein. Bartlomiej Kubicki: Congratulations on the acquisition. Just on that one, maybe the first question. First of all, what has changed in terms of your risk appetite? Because I remember in the past, you used to say much smaller transactions would be a perfect fit for ENGIE. Now you are aiming at something way bigger than previously indicated. And also on that one, if we think about some kind of return, IRR to WACC spread, what kind of threshold is it -- or minimum threshold is it meeting given the valuation of the transaction? So that's on the transaction. And now maybe just a little bit of clarification on the FY '28 and FY '27 guidance. And I would point here to three very small items, if you can explain. First of all, last year, you were saying that in FY '27, 63% of EBIT will be regulated or long-term contracted. Now you are mentioning -- sorry, you said 63% last year. You were mentioning 67% for '28. So I just wondered why is the increase so small, given the fact that you are doing a pivotal acquisition? And also on that, if we think about the renewables guidance for '27 and '28, it hasn't increased much. Actually, the bottom end is at the same level. Does it mean you're expecting some, I don't know, asset rotation in the renewable space as well? Or it simply means there's a negative FX and power prices effect? Catherine MacGregor: Maybe I'll start by the first one. In terms of -- this is a bit bigger than maybe what we had envisaged. When we discussed our willingness to develop our presence in distribution and we talked about a long list of criteria, when you remember, we said we wanted high-quality, we wanted performance, we wanted a single country with distribution, we wanted a place where there is a good quality regulation and something that we would be able to integrate easily. And indeed, I think we did say a size that we can digest, and probably that did imply a bit of a smaller size than what UKPN represents. But with UKPN today, we check a vast majority of this list. So we feel very, very confident. And again, today, ENGIE is a bit of a different places. First of all, we've been very lucky to be able to engage in the process because, as you know, it's a non-process. So UKPN was not for sale. So it was really for us an opportunity that we decided that we could seize because despite the size, we didn't feel that it actually represented additional risk for us from an execution point of view and from an integration point of view. So all the criteria that we had set were met. A bit bigger than what was envisaged originally, but the process or the non-process, the opportunity, the quality of the assets really made us very, very excited about the opportunity. And then, of course, the financing plan that we've presented, which makes us very confident that we can continue to deliver ENGIE's roadmap and, at the same time, made the structural move a one-off. That's it. It's done. We've done that. We've pivoted at least for a few years. For us, it's really a bit of the best of the two worlds. So we are actually very, very excited by the size as well of UKPN and the size of this transaction. Maybe, Pierre-Francois? Pierre-Francois Riolacci: Yes. On IR and WACC, first, we are very committed to deliver on our investment -- total investment, a premium of about 200 bps above WACC. That's very important. But we take it as a whole, of course. And we invest based on risk-adjusted return, which means that some projects are coming with a spread above WACC, which is different from others. And when it comes to assets which have a WACC which is significantly lower than average, it's nearly impossible to deliver 200 bps on top of it. And in that kind of business, it is very difficult to achieve that kind of return. So to be very candid, we are below the 200 that you would expect in general for ENGIE and we fully recognize that. Still, this investment is fitting criterias which are adapted to its specific profile, and we are delivering, of course, IRR significantly above WACC with, of course, all kind of assumptions surrounding this calculation. When it comes to '27 versus '28 and the speed of regulated assets, I think it's a good pick. And the reason why it's growing but not growing that much is that the rest of the business is growing. And it's not only that we have UK Power Networks, but we do have other businesses. You mentioned Renewable & BESS, rightfully so. But you could also mention SEM, Supply and Energy Management, which is growing as well over the period significantly. And therefore, we have a bit of a dilution of our regulated assets even if, of course, they are growing. Now it's really the story of ENGIE. And we have different growth engines and they are all going up, which is not again a coincidence, something that which is architected. And therefore, it's not that easy. And the last point is that ENGIE start to be a big thing. So to move the needle.,, I mean, for you, it's nothing to move from 63% to 67%. But it's actually a lot to move because it's a big business, which is growing in all its components. And I think we are pretty pleased with that. Delphine Deshayes: Coming back to the room. Peter? Peter Crampton: Peter Crampton here from Barclays. And congratulations on the great deal. Three questions, if I may. The first one relates to your longer-term net recurring income group share trajectory, which has obviously been a big question of investors in the past. Looking at your guidance, getting a 6% CAGR and kind of '27 and '26 and '28 and '27, is a 6% CAGR, a realistic number that you'll use longer term as well for net recurring income group share? And does this UK Power Networks deal help with that delivery as you added a very visible kind of part where you can grow the business? The second question was you're referencing a decline in kind of group WACC on back of this acquisition. Any numbers around how much you see kind of group WACC reduced? And then thirdly, it's great to get that 6 gigawatt number on your data center kind of pipeline. How many projects does this relate to? And obviously, UK Power Networks is in great part of the U.K. Do you feel that maybe that number grows further after that deal completes? Catherine MacGregor: Okay. We have a number of projects, it's several tens of projects that are feeding this pipeline on co-siting on data center, just starting with that latest part of questions. And indeed, we have not really started to discuss in great level of details with UKPN how potentially there could be some opportunities that could be pursued together. But that's potentially indeed an exciting avenue. So that's the last -- the third question. I think in terms of the profile of growth, you want to not mention numbers beyond '28. Pierre-Francois Riolacci: No, thank you, of course, it is an important question. I think that you see that we are building a platform, which is definitely fit for growth, more balanced. We are achieving this 6% in the next 3 years. Is it something that you can extrapolate. I think you definitely see growth engines. I'm not going to elaborate again. The platform is designed for that. We need also to recognize that there might be volatility from one year to the other. We mentioned, rightfully so, the point about clawback when it comes to regulated assets, which are significant. So there might be years which are above and years which are lower. We still have some energy exposure. I mean, clearly, we have been, I think, pretty convincing in showing that we can resist to lower energy prices, but we still keep some upside especially on the volatility side. So definitely, there will be good years, there will be less good years. But still, I believe that this strong middle-digit profile is coming nicely with this platform. And that's what we are trying to build definitely. Now, not committing to 2030 or whatever, but clearly, we are building an earnings power, which is significant and which is higher, of course, than what we had in the past. UKPN, I mentioned it briefly. In the long run, this is a business which can deliver a mid-single-digit growth, and that, we believe. But again, there would be periods, there would be -- we need to manage a depreciation gap period. We need to manage clawbacks. There will be, of course, trajectory, but we believe definitely that we can get there. And then on the decline of WACC, it depends how you look at it. If you look forward, if you look at the portfolio of CapEx and investment, which is coming through, the impact is significant. It's more than 50 bps in terms of WACC in the to-come investment. If you look at the existing ENGIE, the whole thing, there is of course a lot of inertia, but still, it's a few tens of bps of decrease in the WACC of ENGIE as a whole, and you can work your calculation by yourself. But we see that as, of course, a very important component of the value creation. Delphine Deshayes: There's a question at the back? Deepa Venkateswaran: Deepa from Bernstein. I had a couple of questions on UKPN. So if you look at the RAB growth of the companies in ED2, for some reason, UKPN is at the bottom. I think overall RAB growth is 5%. For the next few years, you mentioned 4%. So I was wondering, is there anything structural in ED2, which will be rectified into ED3 on catching up on the growth? And second question, again, on valuation. I mean, this is a higher premium than what Iberdrola paid for Electricity Northwest. So how would you justify. Has anything changed? Is it U.K. regulation? Or is it the outperformance of UKPN? If you could just reconcile your statements at that point versus today. Pierre-Francois Riolacci: On the valuation, you know that we have been very close to the E&W transaction because we were the second bidder and we were indeed outbid by our competitor with, we believe, a fair valuation. So we know pretty well the multiples. Maybe something you can look at is the reference date of the RAV, which is used at the time of the transaction. You may notice that we are using the reference date, which is 3 months before an anticipated closing. Maybe in the other transaction, it was something like 4 months after the closing. With the RAV, which is growing, it can make a difference very quickly in a few digits. And I would also highlight that we have a ticking fee in line with market practice, 4%. So I think if you work on the numbers, you will find out that our multiple is actually very much in line, which is what you would expect for an asset of this quality, which is definitely at least as good as the previous asset that we had been looking at. Catherine MacGregor: Okay. On the first question, comparatively, ED2, UKPN growth, I don't want to comment and stretch myself, but what is for sure is that we are expecting a significant increase in Totex spend -- sorry, in ED3 in line with the very ambitious Ofgem plan that we have for these three licenses. So that's the main thing. And that increases of the order of 40%, 45% from ED2 and ED3. Now, what the other ones will do, I have to say, we'll have to check. But there is definitely growth expected in ED3. And each license has a slightly different profile. Obviously, London is a little bit less about new energy transition stuff. The other two license have a little bit more of that growth, in particular with the solar development in the South of England, which is significant. Although I know it does rain a lot here. Delphine Deshayes: Harry, second row. Harry Wyburd: It's Harry Wyburd from BNP Paribas. So we covered a lot of ground, so these are kind of questions on the questions. But I'll try and still keep them interesting. So Catherine, if I've interpreted all this right, this is a big acquisition that's covered a lot of ground. So you're very unlikely to do any more in the next couple of years, but you're not ruling out further distribution expansion, and you sort of alluded to this as a kind of platform deal. So when you get to 2028 and you're 67% contracted, what is the kind of group objective after that? Should we assume that this is a, you maybe want to continue to build in distribution? Or do you want to look at other parts of the business? One thing that sticks out for me is your outright power exposure, say, in France, the nuclear drawing rights or the hydro. What is the philosophy after you get 67% on how you want to change the business mix? So that's the first question. And then on the second one, it's a bit of a, this for Pierre-Francois, it's a little bit of a challenge. So you sort of, you alluded that you could continue with the performance plan for a long time, but at EUR 300 million or so a year is sort of 5% earnings growth, which is obviously fantastic. But probably, there's a point at which it gets quite hard to deliver that amount of incremental cost savings every single year. So how long would you be able to go at EUR 300 million a year of performance savings? And if there is a law of diminishing returns, how do you sort of pivot towards other sources of growth? Is it a continuation of M&A, that we've just discussed? Or is it something else? Catherine MacGregor: Yes. Maybe, Harry, we think in general at ENGIE, we create more value organically than inorganically. We, today, are doing something which is structural for us. Developing a presence in distribution is a very important move for us. It gives us the profile of growth that we've commented in length during the presentation. And I'm not expecting to do any big M&A in distribution anytime soon. I think it's very important for ENGIE to digest what we've done and to indeed establish and learn from UKPN from an electricity distribution culture. It doesn't mean that in '28, we're going to do another one, not at all. That's not what I meant. I think we're very excited about the growth opportunity that UKPN is bringing in itself. And that's really the whole beauty of the transaction, is that we're not just doing that thing and then we have a presence in distribution. We have now a presence in distribution. And we are able to grow in distribution through UKPN, and that is really going to be in the short term and midterm, our priority. So in terms of profile, I expect continuing investment in generation, continuing investment in infrastructures with the power networks, organic development in Latin America. Organic now, it's so nice to be able to say that. From July 1, we're going to say that we are growing organically also in distribution, which is fantastic. And then the third thing, which is going to accompany our customers through our B2B franchise, which we didn't talk too much today about, but we are also very excited about. And there will be also growth there. And this is really going to be the three key growth avenues that we propose to explore. And I don't see any reason why this will stop in '27 or '28. Frankly, we think that is going to carry us along for quite a while. Pierre-Francois Riolacci: And on your point about performance, I'm very optimistic that we can maintain that rate for a long time. First, the starting point gives opportunities, for sure. And for those who know a bit ENGIE, I mean, you know that there is still room for improvement in many ways and that's very common. Second, what we are doing, I mentioned the ERP project, but I could mention a few other IT projects. I mean, we are really breaking new grounds in terms of data management. We are, ENGIE -- the legacy of ENGIE was this, these 24 business units which were spread all over with no common language, no common tools. This has moved. And now we are moving at pace, building some data access, which is really impressive. This is going to create a new layer for further savings which are significant. It's not necessarily cost savings, but efficiencies, definitely, we see a lot for better maintenance. We see a lot in procurement, not because we would be adding new procurement savings as such, but because our ability to challenge the consumption to manage the demand and procurement is going to be boosted by what we are rolling out as we speak. And I'm not here in these numbers incorporating any significant contribution from AI. But this is coming on top of it. And this is coming through. And if you look at '28, you may argue, okay, but this amount are not going to be significant. But if you look deeper in time and if you look to 2030, 2035, I have no doubt there will be a very significant contribution in efficiencies and also cost cutting coming from AI on this part. More about the competitiveness and the structure of cost, I think there is still a lot of potential. On the business part, I mean, we are talking about EUR 100 million to EUR 200 million a year, that's what we are talking. I mean, given the size of this business, to me, it looks like infinite. I mean, you can always find EUR 100 million or EUR 200 million because of new technology because of fixing issues. And that's our daily job. So I'm very, very convinced that we can have this EUR 300 million contribution for a very long time. Catherine MacGregor: And the CEO confirms as well. Pierre-Francois Riolacci: CEO thinks it's shy, that's another story. Delphine Deshayes: So we'll now take some questions online. Operator, could you please take another question, please? Operator: Yes. The next question is from Ajay Patel, Goldman Sachs. Ajay Patel: Really informative and congratulations. My question was to sort of expand on one of the points I was making during the presentation. As you look at this, you're improving your risk profile. You're becoming more regulated contract in nature. You're effectively showing solid growth beyond even the '28 period from what we can tell. And I'm just thinking that we have that 4x net debt-to-EBITDA debt metric. And as time and as you execute on your plan, is there an opportunity for that number to go up, and therefore, you have more balance sheet capacity to add to growth as you go further down the line? And then on the data center strategy that you highlighted this morning, could you maybe spend a few minutes just to go through how you crystallize the value from that, as in, is it ultimately to co-develop and then to sell out? Is it just to provide an avenue for renewable and for the provision of energy? I'm just thinking of how are you thinking about the value you extract from that type of activity? Catherine MacGregor: Okay. So should I start with data center? So there are really three buckets, just quickly. So we have the co-siting. And then we have the enablement of our renewables, so this is more traditional PPAs that come and enables us to decide the investment on new renewables generation. So this is quite typical in that. And then there is a third bucket, which is supply deals, which tend to be a bit more sophisticated, a bit more higher value for ENGIE because the tech centers and the data center tend to be very demanding when it comes to green electron, to the type of product. And this is why you see this acronym, the CFE, carbon-free energy, is something that they value and that we can provide. So that's the last two. The first one, which is the co-siting is indeed a bit of a new word for us. We are not taking participation in data center. I just want to be very clear. We remain who we are. We are an energy provider. And where it's a little bit difficult to talk generically about these things, is that every project is different. So the question was asked earlier, how many projects we have? We have about 30, 40 in a very probabilized pipeline today, when we have either already a project under development or we have even existing assets and then we work with a data center developer to see how we can help them access the land. So sometimes it can be just sales of the land to them, and then use existing renewables to provide them directly -- existing sorry, generations, where it can be renewable, it can be battery or a mix of, it can be grid access to help them with their power requirements. So either we have existing projects and then you need to think of margin uplift on existing projects. I talked about derisking. As you know, in the United States, some of our projects get curtailed. Some of these projects, they get exposed to hub or node risk. And so the ability to co-site a data center where we have this project helps us through the risk management brick, and removing some of this risk actually creates value for ENGIE. And then there is all of the things in between, energy management services, when you have co-ocation, managing grid, renewable production battery is also a service that we're able to value with our counterpart. So that's really what we're talking about. It's value creation as an energy management provider, as a renewable and green electron provider. But obviously, we are not looking at investing in data center or co-develop at all. So it's really about partnership and making sure that we bring to our partners our strength. So we have a number of projects, and that's what makes the 6 gigawatt. And you noticed on the 6 gigawatt, it's quite U.S., but not just U.S., we obviously have a strong asset base in Europe, and they will also contribute to some of these developments. Pierre-Francois Riolacci: Thank you, Ajay, for a great question on the leverage. Maybe it's a busy morning. So maybe you have not seen, but the three rating agencies have released their confirmation of rating with a stable outlook. And three of them, they have actually revised a bit their guidance in terms of ratios that we need to comply to be a bit relaxed. And I think it is exactly to your point, that the credit profile is improving and create a bit of space, in the balance sheet. So we are very committed to our strong investment grade because we believe that is part of our story. So definitely, we want to stay in there. But we will also use the flexibility, which is given, not necessarily right away, but this is part of clearly the new flex that we have. Very pleased with that. That was also part of the purpose. You remember when we had that discussion, we wanted more regulated because regulated is also the ticket to ride, to get an efficient balance sheet. So I think that it does make sense. So it's coming naturally. And clearly, we will use a bit of flex. Now this is not today enough to revisit the 4. We are still pretty far away from 4. Of course, we'll be above 4 in '26, but we will be back. You remember, we said that we were -- yes, it's 4, but we are guiding, and we believe we should be steering the group slightly above 3.5. Clearly, we have a bit more flex, and that definitely helps the balance sheet to make sure we capture growth opportunities. Nothing crazy, very much in line with what we discussed, but very pleased to have a bit of flex. Delphine Deshayes: Okay, operator, do we have another question online? Operator: Yes, we do. Juan Rodriguez, Kepler Cheuvreux. Juan Rodriguez: Two questions from my side, if I may. The first one is on Belgium nuclear around the discussions on possible nuclear extensions. Looking at the guidance, you do not include any provisions or additional provisions on Belgium nuclear. Any quantification of possible revisions on your discussions could be helpful. And the second is on the dividend and the credit rating metrics that you were addressing because we know that the EUR 1.1 floor is kind of indicative. Can we see EUR 1.35 as a floor for the dividend looking forward as some of the dilutive effects as well could be offset with a better payout ratio, given the structure of the group and the credit rating, keeping your 65% to 75% payout? Catherine MacGregor: Okay. Maybe I'll give a bit more color on what the discussions we're having with the Belgium government. So here, we're really talking about the dismantling provisions. So these are the provisions that we are obviously much more in control of in the sense that they are being used as we speak, as we know, as we have started to dismantle those nuclear reactors. So it's not something that will happen to us in 50 years' time. And indeed, we have had an intermediate report from the process that indicated an increase of provisions, which is very odd and at odds with at least our provisions and our understanding of the work that we need to carry out to dismantle. So the discussion is ongoing. And I think Pierre-Francois, you mentioned the [ goal ], the ONDRAF and then CPN, and we expect now a settlement at the end of April. The key thing is that the government with whom we are engaged on a very regular basis, understands the need for an investor like ENGIE and an operator for ENGIE to have stability in the framework, including the way the provisions are set. So we're having from that standpoint very constructive discussions, especially indeed that the government has questions on security of supply beyond 2035, and therefore, is very interested in the operator ENGIE to look at extending the current 2 units that we have left operating beyond 10 years. And of course, this extension is something that we have said all along that we were not super excited about considering, but that we could potentially indeed enter in a study to understand the economic operational, safety, feasibility of such an extension. But of course, we can only do that if we have a stable, clear, predictable dismantling provision framework. So that gives you a little bit of some of the nuggets without going into all the details of the discussion. But these are some of the things that are on the table. Again, very constructive Belgium government, I have to say. So I am cautiously positive that there will be a good settlement, good landing on the discussion, both on the provision topic, but also looking at potentially extending the 2 units that are currently in operations. I'll stop here. Maybe you want to talk about the EUR 1.35. Pierre-Francois Riolacci: Indeed. Yes, the EUR 1.35. The EUR 1.35 was not chosen by chance. So there is a clear signal with the EUR 1.35, which is, it's a payout with the current number of shares of 67%. So it's stepping out from the low end of the range, so clearly signals that we are, of course, flexible within our payout range. The second point is that there is a case, the capital increase could be happening before the general meeting, and therefore, that the new shares would get the dividend. If the new shares were getting the dividend, the payout would be mid-range, so something like 70%, depends, of course, on the price, but 70%, 71%, which I give you an idea of what we are ready to do to smoothen the impact of the earnings decline. The second point, which is very important, the new profile of our earnings is different from what it was and especially the low point in earnings that was expected to be in '26. Today, actually, earnings in '26 are expected to be broadly in line with '25. So we are not committing to anything and certainly not creating a new floor at EUR 1.35 because there is a floor and only one at EUR 1.10. But clearly, the EUR 1.35 is commensurate with our expectations on earnings, and we are acutely aware of the expectation of shareholders not to see the dividend to decrease. That's of course, and that's why the EUR 1.35 is, we believe, a right amount to set the tone for what is coming in terms of trajectory. Delphine Deshayes: Okay. So maybe the very last -- sorry last question from the room, Alexandre? Alexandre Roncier: Alexandre Roncier, Bank of America. Just one, the last one as well. It's just regarding GEMS and CEMS in general. And you did mention that we didn't touch too much on energy management, so here we go. I think the results for 2025 came at EUR 1.85 billion for the former GEMS, which is a little bit below the initial EUR 2 billion guidance that you had given like a year ago. So maybe a bit of color on the reasons for that. Is that higher provision, lower operational performance? And if you have an early view on 2026? And I also thought that the 2026-2028 guidance was perhaps a tad more prudent than what we've heard last year regarding B2B in particular, which I think is a little bit perhaps at odds with some of the messages we're getting on partnerships with data center, ongoing growth in that business. So just wondering how all of this fits in. Pierre-Francois Riolacci: Thank you. 2025 was not a great year in terms of energy management. When it comes to energy management, there is a lot about hedging positions and when you have and making money out of this hedging position, EM is managing significant portfolio, which are related also to sourcing from other businesses. EM isn't really in the middle of everything we do, that's the heart of the integrated model. So when you have all this position that you can manage, you can make your long volatility and you can make a lot of money in some circumstances. '25 was not a good year, and I'm sure that it can echo what you've heard in the market. The main reason being that there was volatility, but it was politically driven. And when you want to make money out of energy management, you need patterns. You need a pattern that you can build some proxies around, and therefore, hedge your position. Here, the volatility was not in control. And clearly, the volumes have come down because when you are in that business, you need to be careful not to enter into a transaction that you may regret. So for us, it was very important to be prudent. And definitely, the level of activities, the volumes were lower in energy management than expected. Not a great year in '25. So we've seen some normalization at the end of the year. We see some normalization now. So we are very confident that we will stay in the bandwidth of energy management, as we said, during the market update and as we confirm this year. So not a great year in '25, but we expect that we will improve a bit further in '26. Now on B2B, no, we are not stepping down in any shape or form on our ambition on B2B. Clearly, '26 will be lower. And I mentioned very explicitly this EUR 300 million coming from the former contracts and the one-off that we have in '25. But this EUR 900 million is a solid base on which there will be growth from B2B, fueled in particular by the shift from gas to power, from power to green power and from green power to 24/7. So we are really moving the needle towards added-value product. And of course, behind that, data centers are critical because they are the ones who are also pulling this added-value move. So very confident that we'll deliver. Delphine Deshayes: Okay. This was our last question. Thank you for joining the event today. And of course, if you have any follow-up questions, do not hesitate to call the IR team. Thank you.
Conversation: Clive Christopher Bannister: Ladies and gentlemen, good morning, and a very warm welcome to Rathbones' 2025 Full Year Results Presentation. Can I do the admin bit? Would you mind switching off your mobile phones or somebody will be listening to me in Vladivostok or Abyssinia? So I'd be most grateful. I'm joined today in the room by our Senior Independent Director, Sarah Gentleman. Sarah, you're most welcome, and I'm joined online by other Board Directors. I'm pleased to see investors, analysts with us in person, and I'd like to say hello to the many more who are joining us online. I appreciate that you make the time whether you are long-standing shareholders of Rathbones or are engaging with us for the first time. Today is an important moment in our calendar as a company. And on behalf of the Board, I want to thank those shareholders for their interest and continued investment in our fine firm. We trade today at a 5-year high with our market capitalization at over GBP 2.4 billion. So let me set out briefly how we intend to run this morning. We will begin with an overview of the 2025 financial results and guidance from our Group CFO, Iain -- can you wave, Iain -- Iain Hooley, followed by opportunities for question, another form of health guidance. When you get -- when you want to ask a question, please wait for the microphone to come so that our colleagues who are online can hear your question. Then after a short break, we will move into the strategic presentation where our new Group CEO, Jon Sorrell -- Jon? Thank you very much. Glad everybody is recognized -- will outline a forward-looking evolution of our strategy, and we will close with a further Q&A session. Before we begin, I want to offer a few reflections from the Board, slightly tongue in cheek. It is the 284th year, so since 1742, since the Rathbones Group started in Liverpool. And I'm going to say, consistent with that long heritage, we have tried to deliver disciplined capital returns, including a 6.2% compound annual growth rate in our dividend in the last 20 years. This is a valuable and fine business. Today, we continue that tradition by announcing a dividend of 99p, which is an increase of 6.5% compared with 2024. Setting the math to one side, this has been a year of meaningful progress for Rathbones. We completed the client integration of IW&I, a major milestone that provides the foundations for a unified and much more scalable organization looking into the future. And I want to take a few minutes here to thank our colleagues across our group, 3,500 employees in 17 offices to thank them for the work that they have done exceptionally hard in the last 2.5 years to get this done. This was never taken for granted, and I want to thank you, all of you on behalf of the Board. We navigated the CEO transition smoothly as a Board and have strengthened the executive team considerably around Jon, adding further experience to support the next phase of growth. We also launched the group's first ever GBP 50 million share buyback last year, reflecting our commitment to disciplined capital allocation and this morning announced an extension to that of a further GBP 20 million. We know who owns this company, and we reward our investors accordingly. And importantly, the executive team have defined a clear strategy for 2026 and beyond, one that positions the business for long-term success. This is about being in a marathon and not just a sprint. To echo the home team's stated ambition to be the best wealth manager in the U.K. by far. From a Board's perspective, these achievements speak to a business that has strengthened its foundations whilst continuing to deliver for clients and shareholders. There is always more to be done. But the Board and I are enormously encouraged by the momentum that is building across the organization and by the clarity of purpose that now underpins the next stage of Rathbones' journey. Unrealistically, I look forward to the next 284 years. With that, I will hand over. Jonathan Edward Sorrell: Thank you, Clive. Good morning. Thank you again for making it here heroically on a Friday, mostly in suits and ties. So thank you. We really appreciate it. And to those online as well, welcome. You're going to see a lot more of me shortly as Clive outlined, but I just wanted to take a moment to introduce the new team to you all. And so I'll start with Brad, our new CTO. It's a newly created position at the company. Already since starting on the 2nd of January, Brad has injected huge momentum into our technology effort. I don't think I've ever seen anyone so high on AI, which is terrific to see. Next, Camilla, who I think some of you will have met already, who joined in June from some other company but has just done an incredible job getting to grips with our front office team and is full of Formula 1 analogies, which I take to mean it's all about incremental improvement and achieving excellence. Next, Cassandra, I don't think I've ever spoken to a CRO whose byword is hustle. So we thought that was quite a good place to start. But recently anointed by our regulator, Cassandra, making a huge difference, huge shoes to fill, of course, following Sarah Owen-Jones, who's done such a fantastic job for us for such a long period of time. Gillian, another with big shoes to fill following Gaynor, and I'm sure delighted as our new Head of HR, our CPO, to be walking in just when compensation is being done, which is the favorite part of any CPO's calendar. So welcome to Cassandra -- to Gillian. Iain, we're all bored of. Ivo, Ivo, one of the legends of our business, I will say, 33 years young in the business, I think 11 years on ExCo and a font of huge knowledge, institutional knowledge experience on both the investment side and the wealth side and also the founder of our charities business as well, a huge generator of our business. So Ivo. Moving on to Jayne, who is Executive Chair of Rathbones Asset Management and really, in the last couple of years as well has revolutionized our approach to distribution in the business, both in terms of business development on the wealth side, but in RAM as well and really excitingly for Rathbones as a group. And there are many situations where we can bring the best of Rathbones to a client situation, and Jayne does that in spades. Mike, our Chief Operating Officer, has had the huge misfortune to have worked with me in the past at Man Group and used to be Chief Executive of Man Solutions. We have a really broad agenda of very important strategic projects that need to be delivered as a group. And Mike is going to sit at the apex of all of that and make sure that everything is, I think he promised, to be delivered on time, on budget and perfectly and beyond expectations, which was good to hear. Robert Sears, who will join us on Monday, not here today, is our new CIO. Tremendously excited about what he will bring from all of his experience in the family office world to our business. And last but not least, the force of nature that is Simonetta, who has brought an entirely different dimension to our brand, to our marketing effort, whether that's digitally or, indeed, in other forms. And we are very, very excited about what we have to come on that side as well. So with that, I will let Iain get on with the good stuff. Please do stay around in the coffee break and after today's presentations to spend some more time with the team. Iain Hooley: Thank you very much, Jon, and good morning, everyone, and welcome. I'm going to cover 3 main areas. First, I'll run through the overview of the 2025 results. I'll then cover figures relevant to the IW&I integration and our capital position. And I'll then conclude with our expectations for margin progression and performance in 2026. So I'll begin with covering the main financial highlights for 2025. Funds under management and administration, or FUMA, increased by just under 6% to GBP 115.6 billion at the 31st of December, reflecting the recovery in asset values from the low point at the end of the first quarter when FUMA fell 5% following the announcement of the tariffs by the U.S. government. Operating income grew by 3.1% with all principal income streams growing year-on-year, benefiting from both higher average FUMA and the realization of synergies. The rate of growth in income is lower than the overall growth in FUMA as investment management fees are crystallized on a quarterly basis with the first billing of the year coinciding with the low point in FUMA at the end of the first quarter. Underlying profit before tax grew 4.6% to GBP 238.1 million. That was supported by the continued delivery of synergies, which reached GBP 76 million on an annualized run rate basis during the second half following the migration of the IW&I clients onto the Rathbones operating platform. The underlying margin increased to 25.8% for the year overall. This reflects a margin in the second half of the year of 27.5%, having recovered as expected from 24% for the first half. On a statutory basis, profit before tax grew 53.5% to GBP 152.9 million, having also benefited from a reduction in integration costs. Underlying basic earnings per share increased by 5.5% to 170.5p per share, in line with the growth in underlying profit and supported by the share buyback. We've proposed, as Clive referenced, a final dividend for the year of 68p per share, which brings the total dividend to 99p, an increase of 6.5% relative to 2024. And that's reflective, of course, of our progressive dividend policy and is underpinned by the growth in earnings. We'll now look at the principal movements in underlying PBT between 2024 and 2025 and their impact on the margin. The benefit of synergies increased as the full benefit of those delivered in 2024 came through during the year and synergy delivery then increased further during 2025. Whilst FUMA ended the year at GBP 6.4 billion higher than it began, the average level of FUMA during 2025 at the point when fees are calculated was a more modest GBP 3.3 billion higher than the average for 2024, reflecting the market volatility we experienced in the early part of 2025. Profit growth driven by the level of FUMA was therefore limited to GBP 13.4 million. Recurring costs increased as a result of inflation and the specific headwinds we've signed posted previously. Nonrecurring costs incurred in 2025 comprise those we've communicated before, which include the effect of transitioning to the technology outsourcing agreement with Investec and the effect of executive changes. You'll have seen our flows position previously in our fourth quarter trading update, so I'll just touch briefly on the main points. Within the Wealth Management segment, gross inflows remained resilient at 9.5% of opening FUMA. That's despite the focus required from the investment management teams on client migration, which took place during the first half. Gross inflows were then GBP 0.7 billion higher in the second half. Gross outflows improved relative to the prior year, though they were higher in the second half, driven in part by an uptick ahead of the U.K. budget in November. Net outflows for the fourth quarter were the lowest quarter of the year at GBP 64 million, being 8% of the total for the year. As we moved into 2026, we've seen higher-than-normal outflows relating to payments of tax to HMRC from portfolios ahead of the 31st of January tax payment deadline. The elevated level of tax-related outflows persisted only for the month of January, and it is consistent with the increase in clients choosing to crystallize capital gains ahead of the U.K. government's first budget back in October 2024. These tax-related outflows present some further distortion that we've seen in flows -- the flows picture over recent months, adding to that caused by the November budget. In addition to those specific distortions, flows of the Wealth Management segment are also subject to movement in charities mandates, which behave in a more institutional manner and flows relating to noncore execution-only services, which are inherently more volatile. These factors affect the overall headline level of net flows for the Wealth Management segment. Looking through them, we remain focused on the FUMA and flows that are the core drivers of our overall profitability. Delivering improvement in flows relating to the core discretionary private client FUMA is where our focus is strongest. Our strategy to improve these flows is focused on creating the conditions within the business that will support growth and pursuing specific growth opportunities, and Jon will talk more about that later. With regards to asset management flows, the Asset Management segment continues to operate in a very challenging environment for U.K. asset managers, particularly in relation to single strategy funds. However, it's important to recognize the areas of underlying strength within the Asset Management business. Performance across several flagship strategies remains competitive, and our investment teams have deep experience through market cycles. During the year, the Asset Management business launched 2 important new strategies, charities authorized investment fund, or CAIF, and an ex-Japan Asia fund. And whilst those funds are in their early stages and therefore, had a limited impact on the flows position for the year, they nevertheless represent important enhancements to our asset management offering. The Asset Management segment provides the investment solutions to certain of our wealth management propositions, principally the Select and managed services and the core MPS service, which launched during the year. And Jon will speak more later about how Rathbones Asset Management enhances our overall competitive position. But the funds under management managed by the Asset Management segment that relates to the wealth -- the services of the Wealth Management segment is included in the gross FUMA of each individual segment and is then removed from the Asset Management segment in order to show the consolidated group position, and that's on the intra group FUMA line towards the bottom of the table. We'll now look at the breakdown of income for the group. All principal income lines reported growth relative to the prior year. The growth in fee income reflects the higher average level of FUMA. Commission income benefited from higher transaction volumes as markets recovered and activity increased ahead of the November budget. The increase in net interest income includes interest relating to cash balances on IW&I portfolios being recognized on this line following migration, prior to which it was recognized within other income. So the other income line, therefore, shows a corresponding reduction. The increase in net interest income also reflects income synergies realized as a result of the higher interest -- net interest margin generated by Rathbones' banking model relative to IW&I's client money model. The reductions in the U.K. base rate that have arisen so far have had a relatively limited impact on the net interest margin due to margins on deposits being maintained so far and the effect of the group's treasury investment strategy, which has a delaying effect in terms of how quickly the base rate reduction feeds through to our net interest income. On advice revenues, we increased -- those increased as we look to increase a portion of our overall client base that receives the advice services in addition to investment management services. We'll look now at income margins. The margins shown on the slide are based on gross FUMA of the relevant segment, i.e., prior to group eliminations. All revenue margins have shown resilience with both fee and commission margins for the Wealth Management segment increasing year-on-year. The Asset Management fee income margin has shown some decrease as the mix of funds continues to shift more towards multi-asset funds, which have a lower annual management charge relative to single strategy funds. Our treasury income yield, which is based on the total value of the group's liquidity, increased from 225 basis points in 2024, reflecting the margin on deposits being maintained, as I touched on earlier, following the recent base rate reductions along with that benefit of our treasury strategy -- treasury investments profile, which means that interest received is not immediately impacted by reductions in the base rate. Turning now to synergy delivery in relation to the IW&I integration. Synergies delivered at the 31st of December 2025 amounted to GBP 76 million on an annualized run rate basis. That significantly exceeds our target of GBP 60 million and is delivered well ahead of the September 2026 target date we originally set at the time of the transaction. Synergies delivered during the second half of the year have been driven predominantly by the decommissioning of the IW&I operational platform following migration of IW&I clients onto the Rathbones platform. With the synergy target exceeded and the integration now complete, we consider 2025 to mark the end of the period of synergy delivery relating to the IW&I integration. However, cost discipline remains the highest of priorities, and we continue to see some opportunities for further efficiencies to be achieved, which we will deliver during 2026 as we optimize the operating platform systems and processes. We'll now look at those costs, which are recognized as non-underlying costs. The categories of those costs, which are recognized within non-underlying, is consistent with prior years. Amortization of intangible assets of GBP 45 million reflects a continuing run rate for that cost line. IW&I integration costs reduced significantly relative to the peak in 2024. We continue to incur -- we will continue to incur costs related to the integration of IW&I up to and including 2027. Those costs that will be incurred in 2026 and 2027 mainly relate to share-based awards that are expensed over the vesting period, which related to the integration. Taking into account the costs relating to those awards that will recognize -- part of which is recognized directly in reserves at the time the awards actually vest and the elements of property-related integration costs that were funded by Investec, we continue to expect the total integration costs to remain within our original guidance of GBP 177 million. Our effective tax rate for the year of 26.6%, we expect that to remain around that level during 2026. So I'll now move on to look at our capital position. Managing the group's capital in a disciplined and efficient manner is of the highest importance to us. We announced our capital allocation framework last year, which sets out our approach to deploying capital. Delivering organic growth and returning to positive net inflows of FUMA is our primary objective. The decisions we make to invest in the initiatives that will support organic growth are assessed with discipline to ensure they are fully aligned with our objectives and will deliver the appropriate return above our cost of capital. Given the importance and focus we attribute to organic growth, the threshold for investment in inorganic growth is currently very high. We maintained our progressive dividend policy and have announced today the proposed increase of 6p to take the total dividend to 99p. Over the past 20 years, as Clive referenced earlier, the annual growth rate in our dividend has been over 6% per annum. The dividend in 2025 will be fully covered as a result of the increase in statutory earnings, which reflects the reduction in integration costs. Two weeks ago, on the 16th of February, we announced the completion of the buyback of GBP 50 million of share capital, which was the first buyback we've undertaken. The group remains highly capital and cash generative with profit converting to cash over a relatively short cycle. And the rate at which capital will be generated going forward has increased as synergies have been realized and the level of integration cost reduces. So consequently, with adequate capital to support our investment in organic growth, we have today announced an extension to the initial buyback program. And subject to regulatory approval, we'll undertake a further buyback or an extension to the buyback of GBP 20 million of shares. Looking now into 2026. I'm going to set out our guidance in 3 main elements: first of all, in terms of our overall margin and how we expect that to progress over the course of 2026; I'll then cover our expectations relating to specific income streams; and finally, I'll cover aspects of our cost base. So the guidance this year is more detail than I would normally set out, but I feel that's necessary in order to explain what is a relatively complex picture as we move out of synergy delivery and invest in strategic priorities and maintain our focus on continuing to improve the efficiency of the cost base. In overall terms, whilst these factors put some downward pressure on the margin in the first half of 2026 relative to the run rate at the end of 2025, we ultimately expect to achieve our 30% margin target in the fourth quarter of 2026. So I'll begin with our margin guidance for 2026. I set out this time last year the path to a 30% underlying operating margin that took into account the additional cost headwinds that have arisen since the 30% margin target was first communicated at the time of the IW&I transaction. The path showed synergy delivery increasing the margin to 28% with the remaining uplift to 30% dependent upon organic growth in FUMA. The path was also underpinned by the assumption that the impact on the margin of cost inflation would be offset by market-driven growth in FUMA. Whilst market appreciation has offset the impact of inflation and synergy delivery has exceeded the original target, those benefits have been broadly neutralized by net outflows during 2025 and the additional cost headwinds we communicated with our 2025 half year results, along with our continuing expectation of a reduction in net interest margin as the base rate falls. Taking all those factors into account, we remain on track to deliver a 28% margin in Q4 as a result of synergy delivery, and we continue to expect to deliver a 30% margin from the fourth quarter as a result of further cost efficiencies that we have identified and will deliver through continuous improvements in systems, processes and our operating model. The achievement of a 30% margin from the fourth quarter of 2026 is based on growth in FUMA of 3% during 2026, stable inflation and interest rates being in line with current market expectations. We expect the margin in the first half of 2026 to be notably lower than the second half, reflecting the one-off investment we will be making to consolidate our client life cycle and relationship management systems using Salesforce and XPlan, which will replace InvestCloud. That will increase the first half cost relative to the prior year by GBP 9 million and by GBP 7 million for the year overall. We expect the margin to show significant progress during the second half as this investment is completed and the benefit of further cost efficiencies begin to come through. We expect the overall margin for 2026 to be broadly consistent with the second half of 2025 being in the upper 20s range. And that margin guidance takes into account all movements we expect to see in income and costs during 2026, the more significant of which I'll now just briefly cover. Within our income streams, fee income will, of course, be dependent upon the level of FUMA, which started 2026 significantly higher than the average for 2025. Commission income is expected to be around 5% lower than 2025 as volumes normalize following the heightened levels of activity in 2025 that I've referred to earlier on. Net interest income is expected to be broadly flat year-on-year, and that's a net effect of 3 factors: first, a reduction in the income margin as the effect of recent base rate reductions flows through fully, along with the effect of further rate cuts that are expected during 2026, for which we're assuming the U.K. base rate will be 3.25% by the end of the year; secondly, we see -- we'll see further synergy -- the further -- a full year of the synergy benefit resulting from IW&I's client money balances moving on to the Rathbones banking model; and thirdly, the recognition of a full year of interest income on the net interest income line relating to the IW&I business, which was recognized within other income prior to migration. And with regards to advice income, we expect to see a similar rate of growth as we've seen in 2025. We continue to see significant opportunity for growth in our advice revenue, and whilst we see -- expect to see that, greater momentum is expected once we've established closer alignment between our investment managers -- investment management and advice offerings during 2026. Costs in 2026 will benefit from a full year of synergy delivery, bringing an additional GBP 16 million of benefit to 2026. Expenditure to support our strategic objectives includes the investment to consolidate our client life cycle and relationship management systems, which I touched on just earlier. We have also expanded our change capacity in 2026 as we look to accelerate the continuous improvement of our systems and processes. Staff costs are expected to be around GBP 10 million higher in 2026, driven predominantly by inflationary salary increases. The new client-facing remuneration scheme for the combined business was implemented within the existing level of cost but did involve some rebalancing of fixed variable costs -- fixed variable remuneration as we achieved alignment across the combined business. Inflation will, of course, continue to affect non-staff costs, but we do not currently expect to see a significant increase in the FSCS levy. Integration costs, which are reported within non-underlying costs, are expected to be significantly lower in 2026 at around GBP 17 million for the reasons I covered just earlier. So I appreciate the guidance. That guidance has covered a lot of ground, so I'll finish by just coming back to the main point, which is that whilst there are factors that will influence the level of the margin over the course of the year in 2026, based on our assumptions relating to FUMA, inflation and interest rates, we remain on track to reach a 30% margin in the fourth quarter of 2026. And with that, Jon and I will happily take your questions. Benjamin Bathurst: It's Ben Bathurst from RBC. I've got questions in 3 areas if I may. Starting with FY '26 guidance, lots of moving parts, clearly. But with synergies now secured, what do you expect to be the equivalent of that GBP 31 million PBT benefit that you show on Slide 8 for 2025? What do you expect to be the equivalent for FY '26? And then secondly, on capital, as you mentioned, integration costs behind you, you should be more capital generative looking forward. Should we consider further future buyback as highly likely? And then just on the sort of the capital position at the year-end, GBP 108 million, I think, after the buyback, screens are slightly high. Are you holding back something there potentially for bolt-on activity? And then just finally, on the Salesforce versus InvestCloud decision, what are the benefits that have really informed your decision to invest again and incur that incremental cost? Iain Hooley: Thanks, Ben. So taking those in turn then. So the synergy benefit for 2026 will be GBP 16 million, so that's effectively the full year of the 2025 synergy delivery coming through in 2026. So that will be an additional GBP 16 million. So that's in the guidance. In terms of the buyback, the reason we've gone for an additional GBP 20 million is because we could accommodate that within the existing program. And then the existing program involves -- doesn't involve Investec participating. So as we buy shares back, that concentrates Investec's holding back to closer to where it originally was at the time we did the -- when the transactions happened, not beyond that, of course, but up to that level. So it was simple to bolt that on and accommodate within that existing framework. If we want to go beyond that, things get a little bit more complicated. We need to go through a process to agree how we would manage that process of Investec's participation. So we continue to apply our capital allocation framework. We're fully committed to that. To the extent that we have capital that goes beyond our investment needs, we will continue to return that capital to shareholders. So we're not setting that out as a hard and fast rule, but you have our assurance that that's a discipline that we are very much focused on. I think that hopefully covers that capital question. Yes. On the CLM, the capital -- the InvestCloud decision, I mean, I think ultimately, we implemented InvestCloud to replace the -- to be our client life cycle management solution. I think it's fair to say it hasn't delivered everything we wanted it to. We've got some marginal benefits from it, but we see greater opportunity in moving on to the Salesforce system given the strategy and the focus on organic growth and building the foundation that will enable us to -- that will support that growth. So that's behind our decision to do that. And we feel we can implement that during the first 9 months of 2026. We've got Brad and Mike who are involved in that execution and very much focused on that. We already use Salesforce and XPlan in the business. So we have a high level of confidence that those will be readily implementable within that time frame. Christiane Holstein: This is Christiane Holstein from Bank of America. I also have 3 questions. So firstly, maybe on net flows. So I know gross inflows started to improve towards the end of last year, but it still does seem a little softer following the IW&I integration. So just wondering what your expectations are there. And then if the guidance for 3% per annum growth for FUMA, does that imply expectations for still net outflows in 2026? Or how are you thinking about, yes, flows versus performance there? My second question is also on the client life cycle and relationship management system. So I understand with the whole shift in technology systems previously through IW&I that did impact IM productivity as they got used to the new systems. Could there be any potential for productivity impact here as well or just a teething process? And then my third question is on advice. So previously, this was quite a very exciting part of the business and potential for future growth. Just wondering how you're thinking about that now with risks for AI being front and center. And then how advice also now contributes to the margin target. Jonathan Edward Sorrell: Yes. Thank you. So look, on flows, traditionally, we wouldn't comment on an outlook for flows specifically. The job now, as we'll talk about later, is to generate sustained net inflows going forward. I wouldn't read anything into that 3% FUMA beyond we're giving you a framework to think about what needs to happen in order to hit that margin target in Q4, and we're confident on the basis that Iain laid out with respect to FUMA growth, whether that comes from flows or the market this year and then what happens to interest rates and inflation. On the CLM system, you're right, I think the implementation of InvestCloud had, had an impact on IM productivity. The good news about moving to a solution that really combines Salesforce and Xplan is that those are 2 systems that are already part of our business, and so people are, to a greater extent, used to them already. But of course, there will be some friction on the implementation of any new system. But I wouldn't expect it to have the same magnitude of impact that we saw with InvestCloud. And then with respect to advice, not to steal any thunder from what's coming later. But it's just to say it is a very exciting opportunity, and with respect to AI, we see just potential huge benefits in terms of the productivity that will bring. And AI won't obviate the core of what our value proposition is to clients, which is trust and empathy and judgment, and you can take what AI brings you and add those elements and indeed spend much more time on them. David McCann: It's David McCann from Deutsche Bank. I'll stick with the traditional 3 as well, please. And we'll start on that 3% again just to follow up on that previous question. So I obviously hear your comments. You're not going to comment on the flows and what we may or may not be able to read into that 3%. But should we better think of this as that's the minimum level you need to get to 30%? So presumably, if FUMA growth was more than 3%, we should expect more than 30%? That's the first question. Secondly, what is the dividend policy or payout ratio or growth however you're thinking about that going forward? That would be useful. I think traditionally, you've steered us in the direction it's like 2/3 payout ratio, but maybe that's no longer the right way to think about it. So yes, that would be useful. And then finally, the investments you're talking about, is all of this going to be OpEx? Or is some of this CapEx? Iain Hooley: Okay. So just on the 3%, I mean, we've just made that assumption within there. And if FUMA grows, from whatever means, by 3%, then we will hit that margin target. I mean, clearly, we've got opportunities to invest as well as letting if any further future benefit if there's a further growth beyond 3%. But that, we think, is a reasonable basis on which we can deliver that 30% margin target. On the dividend, we don't set up the payout ratio as such, but our dividend policy remains progressive, and you can see from our track record how that progression has played out over the years. It's all part of the capital allocation framework. So to the extent that we generate more capital and there's a headroom between the dividend and total capital we generated beyond what we need to invest in the business, then we will continue to return that surplus to shareholders. And OpEx, yes, in terms of the investment in the strategic initiatives, yes, we don't envisage that being capital investment as such. We can see that being accommodated within our existing cost base. It's really about reprioritization of things. We can achieve further synergies in certain efficiencies in certain areas and redeploy that capital to areas that will deliver a better return. And that's all part of our capital discipline that we apply to all of our decisions that we want to make sure we are deploying capital and resources in the right place that delivers the right return. Jacques-Henri Gaulard: Jacques-Henri Gaulard, Kepler Cheuvreux. Just one really. Thank you very much for the guidance on the operating margin, super comprehensive. But at the end of the day, if there is growth, is it worth remaining married to it? And would you remain married to it come to 2027 if the momentum of the business is actually good? And why not spend more money for one given set of growth? Jonathan Edward Sorrell: You only had one question? Jacques-Henri Gaulard: Yes. Jonathan Edward Sorrell: Unheard of. Look, the 30% margin target is for Q4 of this year. I think your point more broadly longer term is exactly right. I mean what impacts our margins, obviously, some things are beyond our control, market movements, so on and so forth, interest rates. And I've received much feedback from shareholders that one shouldn't marry yourself to a target long term when there is growth to be had. So I'm sure we'll have a sensible discussion about that going forward, but the 30% target pertains to Q4 of this year. And on the basis that Iain laid out, we're confident of hitting that target. Okay. Any more questions? Perfect. Well, we're going to allow ourselves a 10-minute break if that's okay. And there's coffee outside. And if we could be back in here for 10:51, let's call it 10:50 -- 9:50 rather. 9:50, that would be great. Thank you. And I'll try and tell the time. [Break] Jonathan Edward Sorrell: Okay. Thank you, everyone. I hope you enjoyed the break, and welcome back. Rathbones today stands at a moment of real opportunity, better positioned than we were 2 years ago, more settled than we were a year ago and more focused than any time since I joined. Over the past 2 years, we've succeeded in completing the largest integration in our industry's history to create a platform that is ready to perform. As Clive said, that involved enormous hard work, resilience and professionalism. And to our colleagues around the firm, I would just like to thank them for that extraordinary effort. To Paul Stockton and the team that delivered that integration, thank you for the opportunity that you've given us. And to our partners at Investec, thank you for your continued support. That chapter is complete, and now we move forward. Our vision is to build the best wealth manager in the U.K. by far, not because we're there now but because we aspire to set the standard in our industry. That's what our clients expect and deserve, and it's what we are committed to delivering. We operate in an attractive market that offers long-term growth, and we're already one of the leaders within it. We have the scale to invest in our capabilities. Our client base is strong. Our people are terrific, and our brand built through generations is trusted. Those are real advantages. But we do recognize that those advantages have not yet translated into organic growth. Recently, our growth has just not reflected the strength of our capabilities. Net flows have not been where they've needed to be. So our focus now is on execution and on delivering sustainable organic growth. The responsibility for that execution sits with me and our executive team. One day, we'll have the opportunity to participate in further consolidation in our industry, and we should be able to create very significant value when we do. But today, the greatest value is to optimize what we already have. If we execute well, our business has a powerful value creation algorithm. Durable growth across the cycle, whether that's through flows or performance, improving operating margins and strong capital generation all result in compounding shareholder returns, whether through earnings growth or multiple expansion. Today, I'll set out where we are, why the opportunity is compelling and how we'll measure progress. We have the platform. We have the team. We have the strategy. And now we must prove it. So before we look forward, it's worth remembering where Rathbones has come from. In the last 2 decades, the business has increased tenfold in terms of assets under management as a function of around a dozen deals, culminating, of course, in the combination with IW&I itself, the product of several acquisitions. And that means, today, we run GBP 116 billion of assets for over 119,000 clients. That scale is not the objective in and of itself, but it does give us the ability to invest in our people, in our technology, in our investment and financial planning capabilities and to deliver ultimately better outcomes for clients. Now the market we operate in offers real growth potential. U.K. household wealth stands at some GBP 2.8 trillion and is expected to grow to GBP 3.5 trillion by the end of the decade. One of the fastest-growing segments within that is clients with GBP 1 million to GBP 5 million of assets, and that's exactly where Rathbones is most concentrated. Demographics, regulation and significant intergenerational wealth transfer are driving sustained long-term demand, while the U.K. remains structurally underinvested in equities with too much wealth invested in cash. So this is not a cyclical opportunity. It's, rather, a long-term structural one. Now this slide is actually my happy place, where our opportunity becomes very, very real. We've identified a target market of nearly 3 million people in the U.K. who fit our potential target client profile, and today, we just serve 119,000 of them. That gap tells you everything that you need to know about the scale of the opportunity in front of us. This is not about stretching our proposition or chasing marginal targets. It's about reaching far more of the right ones earlier and quicker. We, and when I say we, Simonetta, knows exactly who they are, where they are and what they need, and we have low share across every segment. That gives us confidence to be much more intentional through digital acquisition, partnerships, business development and referrals in taking Rathbones to the market. Now the value of our business is in the longevity of our client relationships. The earlier we get clients onboard, the better. So instead of thinking about minimum account sizes, we want to think about the present value of our relationships. And we're not going to wait for that growth to come to us. We're going to go out there and find it. So we have a leading position in a market with long-term growth potential and a sizable opportunity ahead of us. We also have a right to win, which comes down to 3 things that are really hard to replicate. First of all, we're a pure-play wealth manager. We're not competing for resources with other parts of a broader group. We're not a distribution channel for someone else's products. That focus and specialism really matters to our clients and to our people. Second, we deliver comprehensive advice through a single long-term relationship, whether it's investment management, financial planning, trust, tax, banking, legal, not as fragmented products but as integrated counsel. Clients don't want to coordinate multiple advisers, and they want one trusted relationship that understands their full picture. This means we deliver excellent service standards. It's not just us saying it but our clients, for example, through our Trustpilot score of some 4.9, which is industry leading. Third, we've built deep expertise in segments where this model matters the most. Our private office, our charities, our court of protection businesses, ethical investments, intermediaries, international clients, these are not mass market segments. They require judgment, continuity and trust that's built over years, not quarters. Add to that our national footprint, our growing digital capabilities and the credibility that comes with the scale that we have, our public company status and a strong balance sheet. That is our right to win, and very few firms can match the quality, the depth, the continuity and the trust that we bring to clients. And even fewer can do it with scale whilst constantly raising standards. So we talked about the market opportunity, the clients that we're targeting and why our proposition stands out. The next question is how do we deliver this consistently at scale without losing what makes us distinctive. And the answer is that we built the business around 2 complementary capabilities. First, wealth management, over 700 client-facing advisers with deep tenure, 17 years on average for investment managers, 10 for financial planners, and that continuity matters because we know wealth is personal and long term. Clients get breadth and choice, full discretionary management, managed solutions, platform propositions and increasingly deep financial planning. We can tailor service intensity without losing the relationship model. Second, institutional quality investment capabilities through Rathbones Asset Management. RAM is a really special business. In my last 3 roles, I think I've met about 2,000 investment firms around the world, and it is exceptionally rare to see a culture that has produced sustained alpha over such a long period of time. RAM was established in 1989. It now manages GBP 16.6 billion across 29 funds. The team combines a boutique focus with strong discipline, 37 investment professionals averaging 25 years of experience, 16 of which are at Rathbones itself. And here's why that matters for our clients. RAM directly enhances our wealth propositions where it delivers clear performance advantages. The multi-asset engine powers our managed Select and MPS offerings with scale and consistency. Our growing range of single strategy funds strengthens that even further. RAM also drives our unified sustainability and stewardship approach. By bringing together Greenbank stewardship and RAM's research teams, we apply one philosophy across all propositions, including charities. So that's one standard and one approach. And the result is better outcomes, greater efficiency and more consistent wealth proposition across the group. RAM operates at arm's length with clear governance and oversight, ensuring accountability and keeping the focus firmly on client outcomes. It still though allows that expertise to flow across the group. We use RAM funds only where they deliver clear performance advantages for clients, and that discipline protects both the relationship and the outcomes. So this is a wealth-led business strengthened by disciplined investment capabilities. And with that foundation in place, let me now turn to our vision and what it means in practice. So as I said, our vision is to be the best wealth manager in the U.K. by far, again, not because we think we're here today but because we think this business has all the ingredients it needs to set the standard in our sector over time. Being the best for us is not about scale for its own sake. It's about delivering consistently strong outcomes for clients and building a business that performs sustainably through cycles. The question is not what we aspire to be. Now it's how we turn that ambition into reality and how we hold ourselves to account along the way. So turning that vision into action means being clear about what excellence looks like in practice, and for Rathbones, it comes down to 4 things. First, we must be the first choice for clients. That means having a world-class investment capability, advice that supports clients through their entire life cycle and a service experience that is proactive, personalized and effortless. Second, we must be the first choice for talent because long-term client outcomes depends on the quality and the motivation and the judgment of our people. Third, we have to be a really effective operator, simplifying how we run the business, using data and technology intelligently and allocating capital with real rigor. And finally, we are going to be the most reputable brand in our market, one that earns trust consistently through how we behave, not just what we say. These are demanding standards. We're deliberately setting the bar high, and we'll measure ourselves rigorously against each of them. Progress will be transparent and performance will be clear. So those are the 4 standards we're holding ourselves to. Let me now take each in turn, starting with the most important one, being the first choice for clients. So as I say, to be the first choice for clients, 3 things matter above all else: first, the world-class investment capability because long-term outcomes are the foundation of the trust that we have with our clients; second, advice and solutions that are honed for the entire client life cycle, supporting clients not just at a point in time but as their circumstances evolve and as Camilla is fond of saying, the right advice to the right client at the right time for the right cost; and third, a proactive, personalized and effortless service experience because performance is not enough in and of itself. So let me start with our investment capability in wealth, and then I'll move on to Asset Management. At its core, Rathbones is a long-term investment house built on judgment, discipline and stewardship of capital. We think in years and decades, not quarters, and we approach investing with a real ownership mindset. Our portfolios are constructed deliberately with thoughtful diversification, active risk management and a total portfolio perspective so that clients' capital is protected in difficult markets and positioned to compound over time. It's not about chasing short-term performance or fashionable themes. It's about consistent decision-making, valuation discipline and accountability for outcomes. And with a new CIO in place subject to regulatory approvals, we're strengthening our investment philosophy, sharpening that accountability and raising the bar on consistency, importantly, while preserving the judgment and independence that have always defined us. That combination, the long-term thinking, the disciplined risk management and accountable decision-making is what we believe defines a great investment house, which is what we aspire to be. Let me say a word on Asset Management because it matters, as I've said, to how this group invests and how we think about capital. Rathbones Asset Management is genuinely differentiated not because of any one individual but because of the culture and the structure it has built over time. And as I say, it's rare to see a business that has supported such consistent alpha generation over long periods without drifting into a hero culture or style dilution. The model is deliberately simple, small, empowered teams supported by high-quality external and internal research, making independent high conviction decisions. That clarity of responsibility is important and portfolio managers own their outcomes. Crucially, though, that freedom is balanced by strong institutional oversight. We've implemented Charles River and MSCI BarraOne to ensure that every risk taken is intentional, measured and continuously monitored. The underlying philosophy then essentially mirrors wealth, invest in quality businesses at sensible valuations, diversifying intelligently and adjust positioning as conditions change. The smaller teams retain that agility and judgment that many larger organizations might lose, and that's without sacrificing discipline. The second pillar of being the first choice for clients is advice that supports them across their entire lives, and financial planning is central to that. Today, planning penetration is around 14% by FUMA and 11% by client. With SHL now fully integrated, planning is happening more organically, but increasing penetration is a behavioral and a cultural shift across the group. This will build steadily rather than overnight, and we're certainly realistic about that. But where planning is embedded well, the impact is very clear. Offices like Manchester and Newcastle have developed what I would call a natural reflex to bring financial planners into client conversations. And that just creates a stronger, more joined-up proposition, and it's driving better flows. You see it in the numbers, deeper relationships and stronger retention. Planning really anchors the relationship across tax and retirement cash flow and succession and gives us continuity through generations. It moves us from managing portfolios to helping clients make better decisions over time. That is why the disciplined expansion of financial planning is one of the most important drivers of both better client outcomes and sustainable organic growth. And I'll just give you a very simple illustration of how this works in practice. In a number of cases, we already might manage a meaningful portfolio for one family member, while other assets sit elsewhere, often in pensions or outside the immediate relationship. By bringing financial planning into the conversation, we're able to identify those assets, align them to a client's wider objectives and consolidate management where it makes sense. That not only brings additional assets under advice, but it also surfaces future flows and opens up conversations around succession and intergenerational planning. But what matters most is that, that pattern is repeatable. So where teams really embed planning naturally, as I say, we see stronger flows, deeper relationships and better retention. And as I say, performance and advice only goes so far and clients also expect a service experience that feels personal and effortless. Our teams deliver this every day. With long-tenured investment managers and financial planners, clients benefit from real continuity, people who know them, understand their circumstances and provide consistently high levels of satisfaction through regular personal interaction. That human relationship remains the differentiator, particularly as clients' lives and finances become more complex. Client expectations are evolving, and we are deliberate about how we use technology to support that. We're investing in hybrid digital delivery to give clients flexibility and choice in how they engage with us, while maintaining the human connection that sets us apart. As part of that, we've listened carefully to client feedback following the migration. There were features in the Investec app that clients valued and selectively, we're bringing many of those capabilities back where they improve the experience. But at the same time, we have to be very clear about what we are and what we are not. Rathbones is not a DIY platform and our app does not need to replicate every possible function as a result. Its role is to give clients clarity, visibility and ease, acting as an extension and not a replacement of the advice or the relationship. So when I joined Rathbones, I became a client. I used the MyRathbones app most days. And I give the team plenty of feedback on how to make it better, and I know they appreciate that enormously. But jokes aside, this does reflect a real step change in how we serve clients digitally. And in recent months, we've introduced value over time reporting. We've improved accessibility, and we've strengthened resilience behind the scenes by removing dependencies on overnight processes amongst other things. And so that's exactly how we're modernizing. The human relationship stays absolutely central and digital simply makes the experience clearer, easier and more effortless for our clients. So that's the promise to our clients. Now let me show you how we measure whether we're delivering it. So before you all get too excited, we're not going to set explicit targets in every area that you see here. Instead, what we're doing is giving you ways of seeing how we're progressing against the standards that we've set ourselves. And these are metrics we monitor very closely internally. It's also important to be realistic. This is a journey. It's not an overnight shift, and these indicators aren't going to move in a straight line, and we don't expect to be best-in-class immediately. But what matters, of course, is the direction of progress over time. Because many of these measures are more meaningful over longer horizons, we'll report on them annually. So starting with investment capability. In wealth, we'll track for you asset-weighted annualized performance over 3 and 5 years versus ARC. In Asset Management, we will look at the percentage of assets outperforming benchmark or objective over 1 and 3 years. Second, financial planning penetration. As I mentioned earlier, we see a clear opportunity to learn from those top-performing offices and embed those behaviors more consistently across the group. And third, our Trustpilot rating. It's just one measure, but it's a proxy, if you like, for whether we are delivering a proactive, personalized and effortless experience, although this is something that Simonetta ensures we measure in many ways with samples of our client base. Over time, improvement across these measures should translate into better outcomes and ultimately stronger, more sustainable flows. So those are the measures that we'll use to show progress as the first choice for clients. And if we're the first choice for clients, we'll be well on our way to being somewhere that people want to work. And as I outlined, none of what I outlined is deliverable without the right people in the right environment, and to achieve our ambition, we also have to be the first choice for talent. If we want to deliver for clients and grow sustainably, we need people who choose Rathbones. They stay at Rathbones. They develop their careers at Rathbones and they do their best work here. And that, for us, comes down to 3 things: a great culture to work in; the right incentives to attract, retain and motivate our people; and AI-powered tools and processes that make doing business easier rather than harder. Let me take each of those in turn. Our culture is one of Rathbones' greatest strengths, and it's built on a total commitment to clients, a long-term mindset, collaboration and deep relationships developed through long tenure. But to deliver our strategy at the pace that's required, we just need to sharpen some of those behaviors. We need greater clarity and simplification, so teams focus on what matters most. We need more pace and intent with decision-making, and we need collaboration that brings in diverse views without slowing us down. So like all strengths, if overplayed, they become a risk. Bespoke approaches can add complexity. Consensus can slow decisions and long tenure without progression can dilute accountability. So our aim is simple. It's to keep what makes Rathbones special while strengthening the behaviors that will help us grow and succeed in our next chapter. Now our long-term success depends on the quality of our people across the whole organization. Skills, knowledge, judgment and stewardship matter everywhere at Rathbones, whether you're managing investments, advising clients, supporting front office teams or enabling the business to run well. And we want it to be clear to everyone what great looks like, how careers can develop here and what is required to progress. Today, our training is comprehensive. It's functional but perhaps a little fragmented. It builds technical capability in pockets, but it doesn't consistently develop institutional judgment at scale. At the same time, our industry faces, as we know, a growing shortage of experienced financial planners. And if we want to grow sustainably, we need to train more of our own. I'm very excited to say that our new Rathbones Institute will address both. It's going to create a unified approach to developing capability across the firm, strengthening technical expertise, deepening judgment and client stewardship and making career paths and expectations clearer and more consistent. It will support the next generation of investment professionals, planners and leaders while also raising standards and consistency across the whole organization. The model is deliberately focused and scalable, a senior leader soon to be recruited, a small central team and an AI-enabled digital learning platform supported by internal and external networks, not in a large stand-alone academy. Costs will remain manageable, I assure you. Launching in 2027, the Rathbones Institute will strengthen our culture, deepen our talent pipeline, enhance the client experience and support long-term growth. The second pillar of being the first choice for talent is making sure our incentives drive the right behaviors. We want every decision at Rathbones to start with a simple question. How does this help our client? Everyone contributes here to the client experience, so everyone has a role in growing the business, and our incentive structures now reflect that. For front office teams, we introduced a new remuneration scheme this year. It's simple, transparent and formula-driven, reinforcing sustainable growth and the behaviors that matters most for our clients. For enablement teams, we've introduced the Rathbones Growth Unit Scheme. This is paid in shares over 3 years and linked to improvement in net flows in wealth, and it ensures that colleagues who support client-facing teams share directly in the value that they help create. Together, these incentives send a clear message: when we grow in the right way, deliver for clients and work as one team, everyone shares in that success. Now this slide brings together our approach to AI and more broadly, how we're using technology to make doing business easier across Rathbones. We recognize we're still just in the foothills of the application of AI, but the potential is real, and we've only just seen its impact. Our approach is pragmatic. It's governed and it's value-led. Copilot is now enterprise-wide. In the front office, AI is improving suitability processes and oversight. And across our data and client platforms, AI is already giving us cleaner data and much sharper insight. But one thing we've definitely learned is this. Technology only works as well as the processes beneath it. So alongside AI, we've been doing a lot of work to simplify and modernize core processes so that the technology can deliver at its best. We've set up what we call 2 swim lanes. The first is removing friction, and we identified, back in the summer, about 100 friction points in the business that have already been addressed. We've actually knocked about 80 of them on the head. And as people see those issues being fixed, they've surfaced about another 75, which is exactly what you want, a culture of continuous improvement rather than just acceptance of workarounds. But I use those numbers to demonstrate the intensity with which we are addressing those issues. The second swim lane is reinventing some of our core processes. This is a big opportunity. We started with onboarding and a team disaggregated that process into around 1,000 features. And we have identified 90 improvements that are in the pipeline. We're about 1/4 of the way through at this point because this is where productivity and the client experience are won or lost. So looking ahead, the next phase is deeper integration, extending AI right into core workflows with governed agents across all functions, front office, finance, risk, compliance, people and so forth. On AI itself, the potential is huge. We don't know exactly how long this is all going to take, but the rate of improvement is really, really encouraging. If we systematically embed these capabilities into how we operate and advise, the prize is significant, higher quality of service, much cleaner execution and materially better productivity, all while keeping human judgment and relationships at the center. We are delighted to have Brad here leading the charge in this respect, and as I commented earlier, he does seem a little high on AI, which is great. So whether it's culture incentives or technology, the common thread is the same. We're trying to make it easier for our people to do great work. As with clients, the key question is how do we know this is working. And that brings me on to how we measure progress as the first choice for talent. So we'll measure and report progress on this goal. The first is employee engagement because people, obviously, who are engaged do better work, make better decisions and better outcomes are delivered for clients. The second is the retention of high-performing and high-potential colleagues. That tells us whether people see a future for themselves at Rathbones and whether our culture, development and incentives are working. And the third is the adoption of AI and digital tools across the business, not as a technology scorecard but as evidence that processes are becoming simpler and that our people have better tools to do their jobs well. These aren't the only measures we use internally, but they provide a transparent way for you to see whether we're creating an environment where people can thrive and whether that is translating into stronger execution and over time, better outcomes for our clients. So our third strategic objective is to become the most effective operator in our industry. And for us, that comes down to 3 things. First is sharpening our commercial focus, using data consistently to guide decisions and allocate effort where it creates most value. Second is simplifying how we operate. So the firm is integrated, efficient and genuinely easy to do business with for clients and colleagues alike. And third, applying real discipline to how we deploy capital, ensuring that every investment we make earns its place and delivers meaningful returns. So I'll take each one of those in turn, starting with commercial excellence. So let's talk about how we use data to improve the quality, consistency and effectiveness of our commercial performance across both inflows and outflows. Our first priority in becoming a more effective operator is sharpening this commercial performance. And we're doing that by using data far more consistently across the business. To put this into context, currently, we generate about half of our flows from existing clients and the other half from new clients, a sign, if you like, of strong relationships and strong market appeal. The question then is how we build on that momentum. So we're doing that by focusing on the segments where we create the most value, for example, professionals, business owners and executives, supported by stronger brand visibility and more targeted digital acquisition. And within our existing client base, financial planning, as I've said, remains a powerful lever for engagement and ultimately, share of wallet. At the same time, we are reshaping client-facing teams, so they have the capacity, capability and data to act earlier and more effectively, supported by a much more integrated approach across Jayne's world in distribution, Sim in marketing and Camilla in Wealth. And I just want to give you one illustration of the behavioral shift that this is driving. And this is one of my favorite stories from my time at Rathbones so far. We've been working with a small group of colleagues. We've christened them the cubs, who've been in the firm for about 10 years, generally actually from graduates. And they were looking for opportunities to go out there and win new business. So we started with a small pilot group, supported by coaching and by data. And they collectively, this is 12 people, reached out to about 1,000 prospects in the first 12 weeks. And the early results from that outreach are really encouraging, and that group of 12 has now scaled to a group of 75 across the front office, all of whom are now embarking on the same thing. And that embodies exactly what we're trying to do. We want to go out to where the business is. We want to do it in a way where we support people with coaching, make it more effective with data. And who knew, it's easier than people thought, and it's a lot more fun. And it's going to be really rewarding because of the incentive scheme that I mentioned earlier. So all of this is underpinned by more rigorous performance management and commercial excellence coaching, and that's going to drive consistency and productivity and ultimately, stronger inflows. We're applying the same thought and discipline to outflows. Again, to provide context, roughly 60% of our outflows relate to spending, and the rest is split equally between mortality and taxes on the one hand and client departures on the other. Our focus is on identifying risk earlier, acting more consistently and meeting more client needs within Rathbones. We are introducing a predictive AI-enabled model that flags assets at risk sooner, giving advisers more time to intervene. And that's alongside a standardized business-at-risk playbook so that our responses are consistent and effective. We're also strengthening our proposition at key moments, including retirement and expanding services that deepen loyalty. As I've said earlier, financial planning remains one of the most powerful levers for retention. When clients move to a holistic plan, engagement and longevity increase materially. So I'll give you an example. A long-standing family that has more than GBP 10 million of assets with us told us they were considering moving to a competitor, offering a so-called one-stop shop as they entered retirement. Because of the strength of the relationship we had, they were open about it, and we responded quickly, bringing together investment management, planning, legal and trust expertise in a single coordinated conversation. That client chose to stay. They expanded their use of financial planning, and they're now transferring additional assets as part of a multigenerational estate planning exercise. This is now the Camilla-Jayne playbook for rescuing situations and making something of them. The point is straightforward. We act early and present a genuinely integrated One Rathbones proposition. We retain assets. We deepen relationships and create more value for clients and then the shareholder. The second part of becoming the most effective operator is simplifying how we run the business. Post integration, we saw clear opportunities to remove complexity, strengthen alignment and operate in just a much more focused and efficient way. So first is our operating structure. We are going to bring related capabilities together to work as a unified team. A good example is integrating Greenbank's expertise into RAM and our central research teams, creating a single sustainability center of excellence with consistent research and stewardship across propositions. Second is governance. I've yet to meet anyone at Rathbones who wants another committee. So we are streamlining governance. We're reducing duplication, and we're simplifying decision-making so that accountability is clearer and pace improves. Third, systems and efficiency. You heard earlier about extending Salesforce and replacing systems that weren't working for us. Our new COO, Mike Turner, along with Brad, our CTO, is leading a unified platform -- program to modernize systems so that they're faster, cleaner and more aligned to how we want to operate. Enterprise AI tools now have about 95% adoption rates, automating routine work and reducing friction. Together, these changes are making the organization less siloed, more connected, more effective and freeing up time for our people to focus on clients. The third pillar of being the most effective operator is capital efficiency. We are applying much greater discipline to how we deploy capital. That means being selective about technology investments, ensuring that our marketing spend is directly attributable to flows and only pursuing team hires when it strengthens our organic growth trajectory. Every investment has to earn its place and improve returns on capital. Over time, this approach drives continuous improvement in how we operate, improves returns on invested capital and ensures that growth is both sustainable and value accretive. So capital discipline is the final enabler, making sure every investment earns its place and improves how we operate. The question then, how do we know this is working, and that brings me on to how we'll measure our progress. Our primary focus is a return to net inflows in wealth. We are not setting a specific target or time line, but we firmly believe this is achievable now that integration is behind us and the organization is aligned. We also want everyone to think of themselves as client facing, and we'll, therefore, monitor client-facing hours per adviser with the explicit aim of stripping out inefficient processes and freeing up time for advice, conversations and outreach. And finally, we'll apply strict discipline to capital allocation using return on capital employed as a core measure, ensuring that every investment, whether in marketing, technology or people, earns its place. So that's how we drive execution through commercial focus, operational simplicity and capital discipline and how we measure progress along the way. The final pillar is about how we are known. To sustain growth and earn trust over decades, we also need to be the most reputable brand in our market. Rathbones was founded in 1742, and that heritage really matters. But that reputation is -- it's not inherited. It's earned every day through how we behave and how we deliver consistently. Our focus is on 3 things: a relevant and distinctive identity, clear leadership grounded in purpose, and efficient amplification so that we stand -- so that what we stand for resonates more strongly with the audiences that matters most. It's not just about being louder. It's about being clearer, more consistent and more trusted. So in 2025, we refreshed our identity and our purpose, invest well, live well. This wasn't just a cosmetic exercise. It reflects what Rathbones has always stood for, helping clients make good decisions with their money so they can live the lives they want, expressed in a way that's clearer, more human and more relevant today. The characteristics you see on this slide underpin how we run the business, long-term thinking, unconflicted advice, deep relationships, high integrity. Feedback from clients has been really positive, and importantly, the fresh -- the refreshed identity resonates with a much broader demographic, which obviously matters if we want to grow while staying true to who we are. Reputation in our industry is built on trust, and trust comes from expertise, judgment and consistency. We build that trust by contributing meaningfully to the conversations that matter to our stakeholders, whether that's clients, colleagues, the media, policymakers or the communities that we serve. Through thought leadership, policy engagement and community outreach, we bring relevant expert insight. We look for areas where we have deep expertise and where our voice adds value in pensions, the budget and so forth. This is about showing leadership through real substance and in reinforcing that Rathbones is a firm that people can rely on through cycles. The third element is amplification, efficient amplification, making sure our reputation and expertise are visible where it matters. This has been an area transformed in the last 18 months or so. Our marketing, digital and public relations team work as one, amplifying content and insight through our own channels but critically through earned and paid media, social platforms and independent client review sites. We also bring the brand to life locally, events that matter to the communities in which we operate. And those events actually remain the bread and butter of client engagement in our industry, and we really do run some exceptional ones from the Chelsea Flower Show to LAPADA to our box at Lord's, where I'm still awaiting my invite, just to mention. I am a client. But what really differentiates us is discipline. We track the commercial performance of every event, every event, and Simonetta and her team use a rigorous methodology to attribute flows properly and understand returns on marketing investment. And last year alone, when our activity is just getting up and running, our marketing activity as a whole generated more than GBP 500 million of flows. And it's a clear example about how thoughtful brand visibility delivered with total discipline converts directly into growth. So to understand whether we are building the most reputable brand in our market, we track 3 objective measures: first, client advocacy. We monitor our NPS and our position relative to peers. The NPS is 63. That puts us second out of the 9 in our peer group that we monitor, and that's a strong foundation that we want to build on. Second, corporate reputation. This is assessed independently through an external reputation index using public data, and it forms the baseline for a more comprehensive measure now in development. As our identity purpose and leadership activity build momentum, we expect to see progress here over time. And third, prospect visibility. Our brand awareness and consideration among clients with more than 250,000 of investable assets today, that awareness figure sits at 33%, measured again through an independent national survey, and improving it is a clear opportunity. Together, these measures give us a rounded objective view of brand performance, how clients feel about us, how we're perceived publicly and how attractive we are to future clients. So Rathbones is entering a new chapter, and we are a leading player in an attractive and an expanding market. We have a strong right to win, supported by breadth, service and reputation. We have a clear strategy focused on organic growth, and we have a new executive team that is ready to deliver. And I believe we're uniquely positioned to be the best wealth manager in the U.K. by far. Thank you. And now we'll go to Q&A. Rae Maile: Just letting you get comfortable first. Jonathan Edward Sorrell: Someone else? No. Okay. Go on. Rae Maile: Rae Maile, Panmure Liberum. No, no one else goes first. Jon, I mean, you've laid out an awful lot which needs to be done over the course of the next 1, 2, 3 years. Out of all of those things which you've discussed today, what are the 2 or 3 which are most important to be cracking on with right now? And can you talk a little bit about the internal hurdles to actually achieving any of those? Jonathan Edward Sorrell: Look, I think this is, as you say, a pretty detailed strategy, and we're very clear on what we need to do here to drive growth. If you're forcing me to say what the 2 or 3 things are, I think if I had a button to push, it would be to put great technology into this business. So I think that's the foundation of a lot of what we're talking about. I think inculcating an appropriately commercial culture in the organization is a huge win to come. I talked about that group of cubs. It's just such an encouraging initiative with huge amounts of potential. And look, we have to make sure that from a process perspective that we make it really super easy to do business at Rathbones, and that will be the lubricant in the machine, the engine to get all of this going. So if you're going to force me to name 3 things, that's it. David McCann: Dave McCann from Deutsche Bank. Three questions linked to that presentation, Jonathan. So first one, you touched on the new comp -- the variable comp structure. Can you just give us some color on what are the key drivers of that? What's actually going to motivate people? What do they actually care about, so we can, I guess, judge that? Beyond sort of variable pay, in this quest to deliver more flow, do you think you're going to have to invest more in capacity than you've already got, so more people, more systems and so forth? You touched on some of it in the shorter term. But I guess what I'm getting to here is, is the 30% operating margin target beyond Q4 of this year, is that actually sustainable if you have to invest a bit more to actually get these flows that we all want. And then finally, I know you're not going to give any specific targets on the flows. You said that a number of times today, but you have said you want to be the best wealth manager in the U.K. I mean, to my mind, the best scaled player in this market is delivering above 5% net organic growth. So is that ultimately where you need to be longer term if you're going to be the best in the U.K.? Jonathan Edward Sorrell: Okay. Thank you. So on the new comp structure, essentially, it's team-based and formula-driven, as I say. There's a percentage of revenues that are paid to the team and their bonus is that percentage of revenues less their bonus, certain expense items, but it's done in a very clean, simple way. And what that does is motivate people to bring business in, and if they retain that for a long period of time, they can do very well out of that. So it's nicely aligned in that respect. And that whole compensation structure, as you would also expect, is subject to conduct requirements and so forth. Second, do we need to invest more in capacity? So that's why the Rathbones Institute to me is so important. We want to give fabulous career paths to people in the business. I think one thing Rathbones has done exceptionally well actually from what I can see is take graduates in -- I think at a scale, it's quite big actually for a business of our size -- and develop their careers over the long term. What I've noticed is you often meet people who, as with that group of cubs but elsewhere in the business, have started at Rathbones and are still here 10 years later. I think that tells you quite a lot about how special the place is. But through that institute, people will have a mechanism where they can say, if I want to go on career path X,Y or Z, I know precisely what I need to do. And my point to your question on capacity is there is a capacity in the industry generally in terms of the availability, the number of financial advisers and so forth. And so we really want to develop our own wherever possible. We think that we can absorb the investment that's required in everything that we just talked about within our existing cost base as we seek opportunities to simplify and automate the business and get productivity gains through AI. We won't be shy in time. If we find a great way to allocate capital in our business, we won't be shy about coming back and explaining that and telling you how we're going to invest that money. But at the moment, in our base case, we think, as I say, that investment is absorbable. And so that takes you on to your question about the margin, which is a perfectly reasonable one. But I'm just very conscious as we are as a team of all the things that go into a margin target. We had something very specific for Q4 of this year, driven by the delivery of the integration benefits that we had spoken about. I think I've known you for a long time, David, and that goes back to Man days. You know that we're going to operate with real discipline, but we're committing to that margin target for Q4 and not beyond. On the net flows, I think you're right to put the aspiration for net flows in that context. There is no time scale, as I said, on hitting that, but I think, as you say, that's a reasonable measure to point out in terms of what success looks like for flows. Unknown Analyst: Two, I'm a bit surprised not to have any numbers even on a 2- to 3-year view because you have levers. You have the excess capital lever. You have the cost lever as well. So I was wondering what made you cautious in a way. That was the first one. And the second, a little bit cheeky. When you arrived, you said that you wanted to be the best wealth manager in the U.K. And I noticed that today, you want to be the best wealth manager in the U.K. by far. I was wondering where that came from. Jonathan Edward Sorrell: So on the no numbers, look, we -- I don't think in a business like this, it makes sense to set an artificial arbitrary target within an even more arbitrary time frame. This is all about consistency of purpose and delivery, delivery, delivery. So what we've done is given you measures where you can see the progress that's being made that should translate into those sustainable flows. So that's a really long way of not answering your question. On the point about the by far, we as a GC have spent several days debating our strategy, debating what our vision should be and what our aspirations should be. And the by far comes from us as a group, which is that we look at where we are in the industry. We're amongst its leaders. We punch, I think, a little bit above our weight actually in terms of our win rate on new business as we look at situations that are in our pipeline. But that's our aspiration, and that's the standard that we want to set for ourselves, and I think that's a good thing. Christiane Holstein: This is Christiane Holstein again from Bank of America. Just 3 questions. So firstly, on timing, I know you haven't given any explicit time frame. But how quickly do you expect to start to see the benefits of the strategy? And at what point do you expect a meaningful improvement in your targets? My second question on costs. So you haven't outlined any additional costs to put this in place, but some of the initiatives do seem like they might need costs. So for example, the institute or restructuring of staff remuneration. So just wondering where those costs are going to be reallocated from. And then thirdly, on culture. So this is obviously quite a big component of your target. And there seems, over the past 6 months, that there's been quite a few changes within Rathbones, whether that's the integration of IW&I or the new leadership team and everything. Just wondering how staff morale is, attrition, yes, how that's going internally. Jonathan Edward Sorrell: Thank you. So on the time frame, I think it would be reasonable to say that you would want to start seeing some level of improvement within a 12-month time frame, but it's not going to be a marked change. And then I think if you don't see a meaningful change over a 3- or 4-year period, there's probably someone else sitting here explaining that to you. So I have accountability for the delivery of that sustainable organic growth. On the cost side, you mentioned 2 things. As I said, as an overall point, we think we can absorb these costs within our existing cost base as we simplify and automate elements of our business. The institute, as I say, is not a big, shiny new building. It is a small team. We're in the process of recruiting a senior leader. There will be a few people around that person. The training platform is digitally enabled. Let's just put the context of the hiring piece, if I can put it like that, alongside the cost of not having a shiny new building. So look, we have 125 financial planners, I think it is today, and as I said, we have 11% penetration by client, 14% by FUMA. You look at the most effective offices and they're operating at a penetration rate of 35%, 40%, something like that. I'm not sure where we can end up over time, but let's just say, for the sake of argument, it's somewhere between the 2. You're going to have some big productivity gains from technology in the intervening period. But let's say we hire 50 or 75 new financial planners at the sort of costs that a new hire would bring, that's totally absorbable in the context of our P&L. Staff remuneration, just to be clear, that the new front office scheme was cost neutral, so the implementation of that was not designed to save or make money. That's cost neutral. The RGU scheme, which we're very excited about, is incremental to the cost base but obviously very aligned with growth. So if we achieve that organic growth, you're all going to give us a much higher PE, and everyone will be happy. On the culture, I would say staff morale, the integration, it's very easy. I used to be -- I'm a reformed investment banker. We used to advise people on deals. It was gloriously simple because we could advise on the deal, sign a contract and then move on with our life. But this integration, of course, is -- has been a colossal effort, a massive effort over a couple of years, and there are really 3 phases to that integration. You have the migration of client assets, which happened just before I arrived. I swanned in and all the hard work was done. You have the integration piece, again, before -- largely before I arrived, which is sad and it's stressful because it means saying goodbye to valued colleagues. And then you have the harmonization is the third part. So if you have 2 AML process, for example, you would tend to move to the higher common denominator. All of that is a huge amount of work. So when the Chairman and I and others thank our colleagues for the amount of work that's gone into this, we really, really mean it. And to your question on morale, I think that was -- became a real grind by the end of last year. And people really needed their Christmas break. And I'm pleased to report people have come back refreshed and energetic, and we're now going at it again. And that's reflected in the attrition. The attrition in the front office is about 2.8%, something like that for the business as a whole, 6.5%. So the attrition even through that period has been good, which is a testament to my predecessor, Paul Stockton's leadership skills and the culture that we have at Rathbones. Stuart Duncan: Stuart Duncan from Peel Hunt. Can I take you back to your happy slide, Jon, and just some of the opportunity of the younger cohorts? How much of a focus is that for you as a business? And is there anything you sort of specifically need to do as an organization to attract more of these younger customers? Jonathan Edward Sorrell: That's it? Stuart Duncan: Just the one question, boring. Yes. Jonathan Edward Sorrell: Yes. So it's a really important point. The younger cohort is really important. So the value in our business model is in this longevity of the client relationship, 25, 30 years, should be longer. And so I mentioned in the presentation that we want to look at -- rather than looking at minimum account sizes, we want to look at the present value of the client relationship that we can bring in, which is all to say, I'd much rather have 10,000 new 30-year-old high-earning potential clients this year than GBP 2 billion of net flows in the abstract, right? And so getting to the younger cohorts of clients is really important. And that's one of the reasons -- another reason why that cubs initiative is really very important because they can go out and relate perhaps a little bit more easily than some people to that generation of clients. But it's not just about that outreach from Jayne's business development team or from people within the IM and financial planning community. It's about the digital marketing piece as well. And with the new branding that we have, I think that has also fundamentally altered the accessibility and the appeal of our brand to a much broader demographic. So that's all to play for and a really exciting feature. And I think about those 3 million people and the fact Simonetta knows where they all are, and that's very exciting. Benjamin Bathurst: Ben Bathurst from RBC again. Two questions this time. Firstly, on market segmentation, you referenced you're operating in targeted segments now, private office, charities to name a couple. I think it's right in saying that you pointed to the opportunity in the mass market. Does that mean that there's a requirement for you to sort of broaden your appeal outside of those areas of strength? Or are you thinking of focusing more on getting more out of those targeted segments as described? And then secondly, on AI, how prescriptive do you intend to be in terms of investment manager usage of AI? is there going to be an edict from the center? And do you intend to sort of monitor this usage to improve productivity? Jonathan Edward Sorrell: Yes. So sorry if I wasn't clear on this market segmentation point. I think the point I was making was that when you look at the segments that we target, private office, charities, intermediaries, ethical investments and so forth, the right to win that I described really matters in those segments. It's not a mass market proposition. That was the point I was making. And just to be clear, we're not looking to go into the mass market. So just to be really clear on that, I'm sorry if I wasn't as I spoke, but those -- the point you made wasn't the one I was trying to make. On AI usage and edict, I don't think edicts work in a business like this, frankly, number one. And number two, I don't think you need an edict. I mean this is something that should stand to reason. And I think what you're trying to do in many parts of the business is create capabilities that people feel genuinely compelled to use. And look, we've all gone through our own cycle of learning how to use AI tools, and I use them much more than I did 12 months ago and 6 months before that. And I think people are on that journey. But certainly, with the introduction of Copilot and 1 or 2 other things that we're using on the financial planning side as well, I think people are really seeing huge benefits from that. And as we all know, the quality of what these things are able to do now is materially better than it was even 6 months ago. So that's certainly my own personal experience of it. So no edict, but it just stands to reason. Benjamin Bathurst: What about [indiscernible] Jonathan Edward Sorrell: My edict to you is use a microphone. Benjamin Bathurst: You just told me you didn't believe in edicts. Jonathan Edward Sorrell: For you, it's fine. Benjamin Bathurst: Yes. Will you be monitoring, if not edicting, monitoring usage of AI? Would you be monitoring it if you're not edicting it? Jonathan Edward Sorrell: Well, there is a measure, which is really important, of the number of hours that we think AI is saving. And so that is something that we're monitoring. It's basically something that comes automatically to us through the platforms that we use. It's not something that we need to gather ourselves, but beyond that, no. Michael Sanderson: Michael Sanderson from Barclays here. Just I'll go with the 2 because that's become fashionable, it would appear, now. The first one is there's obviously been a couple of ownership changes or prospective ownership changes of what would be perceived as peers of yours. And I suppose I'm interested how you think about that in this moment of growth and the opportunities, whether it's hiring, client targeting, et cetera, et cetera. So interested how you're approaching that element. Second piece, I totally understand and think the advice piece is very interesting. I'm just interested about the higher penetrating offices that you mentioned. Is there anything particular about those offices, whether it's the nature of the clients, nature -- sort of relative age, relative wealth that has meant it particularly powerful that may not be so relevant in some of the other offices for any reason? Jonathan Edward Sorrell: Yes. Look, on the first point, we're in an industry that has, I think, 42 private equity-backed players of some description, and so naturally, that space will consolidate over time. There are going to be more sellers than buyers, I would have thought, over time. And that, as I mentioned earlier, 1 day, could be a really good opportunity for us. In the context of the 2 or 3 deals that might have happened more recently, that may throw up some opportunities for clients who aren't necessarily fans of the situation or certain people. And as you'd expect, we're pretty focused on those sorts of opportunities. With respect to higher penetration, it's a fantastic question because it took us a little while to figure out what the answer was. And I think it's actually really simple, which is in Manchester and Newcastle, what they've just done a fabulous job with is just working together from the start. So it's just embedded in the way they go about their business, the way they think. I've mentioned it as a reflex. It's just the obvious thing to do. Now one thing we have done with the new incentive scheme is cleared up the debate that used to exist about how economics might be split between the 2 functions. So I'm not sure that was the sole problem, but if economics ever got in the way, that's being cleared up once and for all through the implementation of the new scheme. So I think that helps. I think also you just get anecdotal evidence. There was a very good one, the -- from a few months ago, I think it was Camilla, where we'd actually lost a pitch for a piece of business, and we've just gone in with an investment management proposition. And I think Camilla probably raised an eyebrow and said how about the whole financial planning thing. And we went back and we won, and it was a GBP 5 million piece of business. And I think those sort of moments, you have pennies dropping, but it's a matter of developing that reflex. And I think if we get that reflex in the organization, that's a big opportunity. Does that answer your question? Any more online? Unknown Attendee: Yes, I've got one online for you. Question from Paul Bryant from Equity Development. Jonathan, I understand the banking services you provide clients. But in your review of the business over the last few years -- over the last few months, have you thought about whether you need to keep your banking license in-house? Jonathan Edward Sorrell: Yes. So a bit of an old chestnut, this one, as I understand it. I'm not the first person to raise this question. But look, when you look at the return on capital that we get through our banking license, it's in line with our requirements. And then importantly, it's obviously a great glue in the client relationships. It's not hugely widespread in its use around the business, but it is really useful glue in the relationship. Third, I would just add that we're one to relinquish the banking license that comes with quite heavy operational requirements on the client money side as well. So all to say that it has been a focus. I believe it's been something that's come up for debate many, many times over the years, but we're comfortable with where we are right now. And there may indeed be, on the margin, some opportunities to deploy some more balance sheet to our clients but just on the margins. And that's it. Thank you very much for coming in today, as I say, heroically on this Friday. Please do stay around and have a coffee with some of my colleagues. I wouldn't get too close. We've got quite a nasty bug circulating since the middle of January, so keep the distance. Maybe open a window. But thank you very much to everyone. Thank you.
Antje Witte: Welcome to the UCB Full Year 2025 Capital Markets Call. My name is Antje, and I'm doing Investor Relations at UCB. Before I introduce you to the agenda and hand over to the speakers today, I have some remarks. This video is being recorded. You can find the presentation in our download center, if you dial in by the phone. The presentation and the following Q&A session are intended for institutional capital market participants only. If you're not, please disconnect now. This presentation and the following Q&A session are covered by the disclaimer and safe harbor statement as stated on Slide 2 of the slide deck. Kindly read this carefully. With this, I'd like you to introduce you to our speakers today: Jean-Christophe Tellier, our CEO; Emmanuel Caeymaex, Head of Patient Evidence; Fiona du Monceau, our Chief Commercial Officer; Sandrine Dufour, our CFO; and this will then be followed by a Q&A session with all presenters. Thank you. Jean-Christophe, over to you. Jean-Christophe Tellier: Thank you, Antje, and good morning, good afternoon, good evening, everyone, and thank you for joining our full year 2025 presentation. It is really with great pleasure that with my colleagues, we will share with you our results of what has been a very strong year. Can we move to the next slide, please? Because, as you know, we are focusing on execution of our launches, and I think it's fair to say that 2025 has demonstrated our ability to continue to deliver strong growth based on our 5 growth drivers that we have, and thanks to them, they will allow us to enter and continue to build our decade of growth. If I want you to keep just a few elements out of this slide, I will start on the top left part by just one number. Our net sales growth versus last year at constant trend has been at plus 35%. How we have been able to deliver this growth? It's in the arrow of the middle. And as you can see, our 5 growth drivers have reached EUR 3.3 billion, which is more than a double of the revenue that these products have delivered last year. Bimekizumab only delivered and achieved more than EUR 2.2 billion in 2025. So as you can see, a very strong growth that has been delivered in 2025, and Sandrine will be able to go further into the P&L. But a few highlights maybe on my side about 2025. On top of this delivery of the growth and the growth drivers that we have, we have seen also some critical advancements in our pipeline, and that's the bottom line of the slide. First, KYGEVVI. We achieved approval in the U.S., and we have a positive advice from the CHMP from Europe. As you know, KYGEVVI is active in an ultra-rare disease, TK2 deficiency. And it is the only -- first and only treatment that would be available for these children and family to save their life and help them to have a better life. The second element in '25 was our bispecific. We have 2 of them in atopic dermatitis, donzakimig and galvokimig. Both of them have achieved positive endpoints -- the primary endpoint. But through a rigorous analysis, we have decided for the time now to focus on galvokimig and accelerate the development of these IL-13, IL-17 bispecific, not only in dermatology, but also into neurology. Then bepranemab, our anti-tau antibody in the Alzheimer's disease. We have a positive Phase II. We have -- we think we have very strong insight that will help us to guide to develop this product for these patients. And we have been pleased in February to receive a fast-track designation by the FDA. And finally, in '25, we have also started the development of BIMZELX in rare disease, but quite debilitating, which is the palmoplantar pustulosis. '25 have seen also a decision, a very important and strategic decision for us, to make a significant investment in the U.S. with a total of $5 billion of direct and indirect investments into a mammalian manufacturing site to manufacture BIMZELX in the future from the U.S. Next slide, please. So I think it's fair to say that the strong achievement that we have been able to realize in '25 guide us and promise us a bright and successful future for the decade of growth ahead. The first reason of that is that we are one of the few companies who will have a long periods of exclusivity before the next wave of loss of exclusivity. As you can see on the top, we will start in 2033 and the last one will be BIMZELX in 2037. This long period of exclusivity will give us the time and the space to really deliver on our growth. The second element that can also explain our confidence in the future is the ability to continue to differentiate our portfolio. You remember that BIMZELX was the first product to be able to be launched with 3 clinical studies of superiority versus standard of care. As you know, we have started, a few years ago, one additional study in psoriatic arthritis, BE BOLD versus risankizumab. We were expecting this result in the second half of 2026, but we are pleased to share with you that thanks to a very strong and fast recruitment, we will be able to get the result earlier already in the first half of this year. And we continue to grow our pipeline. We'll have this year one submission, 6 Phase II -- 6 Phase III, 5 Phase II, as you can see here. And because of a strong balance sheet and particularly our ability to reduce our debt, we now, of course, have the space and the capacity to think about inorganic growth to continue to fuel, expand and accelerate our growth future. So thank you again for participating to this call. And with this, I would like to hand over to Emmanuel. Emmanuel Caeymaex: Thank you very much, Jean-Christophe, and hello, everyone. It's a real pleasure to be able to provide you with an update on our pipeline from this new vantage point for me as Head of Patient Evidence. So let me take you through innovating with purpose and how we translate differentiated science in durable growth. Our engine is robust, and it's focused on immunology and neurology and their intersection. And today, I'll focus on galvokimig, FINTEPLA, our newly approved KYGEVVI after commenting on a few other key updates. So on the next slide, you can see our mid- and late-stage pipeline that's driven to -- that's built to drive medium- and long-term growth to diversify risk and deliver innovation and breakthrough aimed at high unmet need populations. And just for ease, I'll start at the top with the BE BOLD study, which Jean-Christophe just mentioned. So it is strategically important in the sense that there is an opportunity in psoriatic arthritis to raise the standard of care. And right now, the IL-17 A/F dual inhibition is not yet positioned as a first-line treatment and is not yet leading. Yet we believe, based on our Phase III results, that there is an opportunity to demonstrate superiority versus the IL-23 inhibitor, risankizumab, SKYRIZI. And so we've powered the study to be able to achieve this using a pretty assertive and stringent endpoint, which is the ACR50 at week 16. And so provided this is successful, we'll have the opportunity to strengthen the positioning of BIMZELX across both rheumatology and dermatology, where many patients with concomitant psoriasis and psoriatic arthritis are treated. And as mentioned earlier, the results are expected within the first half of this year. You also read that we started the palmoplantar pustulosis study. And this actually is a disease that is largely IL-17F driven, and this will be an opportunity for us to continue to establish the leadership of bimekizumab in the IL-17-mediated diseases. Now for RYSTIGGO, rozanolixizumab, on the one hand, we have the MOG-antibody disease study readout in the second half of this year, and we're also very pleased to announce that we're starting a ocular myasthenia gravis Phase III study, recognizing the very good clinical performance of RYSTIGGO and the fact that most patients with generalized myasthenia gravis actually start with ocular symptoms, and so this is a logical thing to do to make sure that we enable symptoms to be tackled early and thereby prevent irreversible damage for patients with myasthenia gravis. So looking forward to starting this study within this year. I'll briefly touch on FINTEPLA, fenfluramine, a little later. I just wanted to say a word also about bepranemab. So we've been working very proactively and constructively with regulatory agencies, starting with the U.S. FDA, who very recently gave us the fast-track designation for bepranemab in Alzheimer's disease. And so we're encouraged by the exchanges and the meaning of the data that we've been able to generate in our proof-of-concept study, in particular, in a subpopulation that was predefined. And again, that data was pretty convincing across biology and also across cognition and functional endpoints. So looking forward to more with bepranemab. And then finally, galvokimig. So Jean-Christophe mentioned, we're starting 2 studies in respiratory diseases. And we have started the Phase IIb study in atopic dermatitis, and that's a 52-week study, which will report results by 2028. Now if we move to the next slide, we can dive a little deeper into galvokimig. First, recognizing the fact that in atopic dermatitis, the results were pretty strong. And actually, this molecule was designed to tackle the heterogeneity of atopic dermatitis, delivered about 50% EC90 at week 12 and also very good pruritus data, each data. So the differentiated potential is there, which we will now test in this Phase IIb and really seek to define the optimal dosing. Now what's new and what you haven't heard before is the foray that we're planning in COPD and in bronchiectasis, non-cystic fibrosis bronchiectasis. So COPD has a massive unmet need, as many of you know, it's very prevalent. It causes 3 million deaths per year. So the burden of disease is really very, very high. And it is entering a precision immunology decade. So in this sense, respiratory is trailing dermatology and rheumatology. But I think that the translation of biology is now happening. And with galvokimig, we have an agent that, through its combinatorial approach, really has the potential to addressing core mechanisms of disease in both COPD and non-cystic fibrosis bronchiectasis. So in COPD, you're aware that some products were approved and the segment of patients that are so-called high eosinophils, they're served to an extent, but that's only about 30% of the population. And the other 70% really don't have an approved treatment or targeted treatment to go to today. And we do know that whilst the IL-13 inhibition is presenting a solution that other group probably needs a therapy that takes care of neutrophil-driven inflammation. And that is the concept we're going to test in quite a large study that is going to start this year. Bronchiectasis is not as well known, but it's a disease which is chronic, is very debilitating, chronically diluted bronchi. With the advent of DPP1 inhibitors, there is a level of proof that addressing neutrophilic inflammation can have an impact, and we're talking about a 20% reduction in exacerbations in patients that have at least 2 exacerbations per year. So you see there's still a lot of headroom. And we do know that the pathobiology centers on neutrophilic inflammation, but also mucus dysfunction. And so that's offering validated targets for us and a target which by inhibiting both IL-13 and IL-17, we should be able to meet. So we look forward to those 2 studies producing results. We certainly feel that the scientific rationale is very credible that in each case, one of the pathways is somewhat derisked and that the science underlying the second pathway in each disease is now well established. So together, this represents a very significant opportunity for galvokimig. Now let's move forward to neurology and to FINTEPLA. So as you know, FINTEPLA has been really focused on developmental and epileptic encephalopathies. You learned last year that in CDD, which is an ultra-rare genetic DEE that FINTEPLA has had very nice results, which now will enable us to submit a file to the regulators for approval, hopefully rapid approval given the enormous unmet need here. The news for today is that we're taking FINTEPLA into neurodevelopmental disorders and in particular, RETT Syndrome. So Rett syndrome is a disease with a profound unmet need. And the mechanism of action of FINTEPLA should be able to address that unmet need beyond the seizures. And so we're looking forward to initiating this Phase III, which is based on clinical observations and credible mechanistic hypothesis. We're looking forward to starting this in the next few months. So FINTEPLA, with no generic until 2033, is representing quite a big opportunity for impacting patients, but also for UCB value creation. So on to the next slide. And then to close KYGEVVI, where we just received FDA approval and CHMP nod. So KYGEVVI is the first and only approved treatment for adult and pediatric patients with TK2D deficiency. This is for patients that developed the disease age 12 or below. It is the first foray for UCB in ultra-rare diseases. It's a mitochondrial disease, and so we look forward to learning in this space and establishing capabilities. So we're ready for an agile commercial launch that's planned in the first quarter of 2026 in the U.S. first. So as you see, the number of diagnosed patients worldwide today is probably around 1,500. So there's probably still some space to go to identify patients. However, many patients are already benefiting from KYGEVVI through our development program or in other ways. And so we look forward to expanding that over the next few months. So with all of this, I hope that you're seeing that our development pipeline has gained momentum over the last year and with what is planned for this year. With COPD and bronchiectasis set for a biologics-driven decade and our programs stage for '26 to '28 catalysts, we're advancing differentiated mechanisms, disease-modifying ambition and value creation for the next few years. And with that, it is my great pleasure to hand over to Fiona, who's just taken over as Chief Commercial Officer. Fiona, the floor is yours. Fiona du Monceau: Thank you, Emmanuel, and I look forward to bringing KYGEVVI to patients. This is a unique drug with some survival benefit, which will really make a difference to these patients, but also to their families. Good morning, good afternoon, good evening, everyone. As Emmanuel mentioned, we exchanged role 6 weeks ago, and so I'm delighted to share with you the performance of the team. I'm just back from the U.S., and I can tell you the teams are fired up to deliver on the 2026. Next slide, please. So let's start with BIMZELX, our IL-17 A/F. It's been reaching more patients. It's fast, deep and durable action is really having a great impact on patients around the world. We've now been approved in more than 50 countries. We've been helping more than 116,000 patients. And as Jean-Christophe mentioned, reached net sales of above EUR 2.2 billion. If we look at our dynamic patient share in the IL-17, we're around 30% for psoriasis, 20% for our rheumatology indications and 45% for HS. So from a net sales split perspective, that gives you about 53% in PSO, 28% in HS and 19% in rheumatology. Now if we move to the right-hand side of the slide and look at our uptake in the U.S. compared to analogs, you can see that we're really leading the pack and look forward to continuing on that track. We are proud to say that we've increased our access coverage with 36 more million lives versus 2025 and so now have a coverage above 80% of the commercial lives. And as I sort of think about these progressive diseases that really creates lasting damage, it's really important that patients get access to our drug as early as possible. If I may take sort of some metaphors, if you take PSA and you think about sort of sand in a gearbox, if you flush the sand away quickly, your car continues; if you delay at some point, your gearbox breaks. Likewise, for HS and you think about sinkholes, if you fix it quickly, it's okay; if you wait too long, the whole street comes down. And for our HS patients, this is -- these are tunnels under the skin and lasting scars that you can never get back. So let's move to the next slide. I know everyone is very interested in our performance on HS. So on the left-hand side, if we look at our performance in the U.S., we're now at a 32% market share. I think back in July when Emmanuel presented, we were at 25%, and we look forward to continuing to drive our Formula 1 forwards. And we've shared some of the market shares across some of our countries around the world. Now we often get the question on what do we think the HS market is going to look like going forward? As you know, we're learning about this new market every day, and it's growing significantly. If we look at the number of patients back in October 2024 versus October 2025, we've seen a 24% increase in that space. And our estimates for between 2025 and '30 is that the market will continue to grow in the mid-teens CAGR and expect to reach around sort of $5 billion overall. Now if we go to the next slide, let's talk about our rare portfolio. So first, our MG portfolio. We are at UCB, the first and only company offering a dual therapy portfolio. We have RYSTIGGO, the FcRn and ZILBRYSQ, our self-admin C5. Both of them are uniquely positioned. They're tailored to patient needs. You know that this is a population of patients that's very heterogeneous, and it's also called the Snowflake patients. We are supporting these patients with an excellent patient support program. They are now approved in 30-plus countries, have treated more than 3,700 patients and combined reach above EUR 0.5 billion in sales. And then I will finish with FINTEPLA. With our strong heritage in epilepsy, FINTEPLA is it's now a foundational therapy in Dravet with about 20% market share in the U.S. and is gaining traction in LGS with 9% of the patients. Worldwide, we've now treated more than 14,000 patients and delivered sales above 420 million. On that note, I'm going to hand over now to Sandrine, who will give you an overview of the overall portfolio as well as our disciplined execution and operational efficiency from a financial perspective. Thank you very much. Sandrine, the floor is yours. Sandrine Dufour: Thank you, Fiona, and good morning, good afternoon. I'm pleased to present our '25 results and our '26 guidance. We delivered strong top line growth. We have expanded margins meaningfully, all while continuing to invest behind our launches and pipeline. And that translated into a significant increase in profitability and clear operating leverage. And looking ahead, we remain focused on sustaining this momentum, driven by our 5 key growth drivers. Let's start with 2025 net sales on the next page. The combined net sales of our 5 growth drivers more than doubled year-over-year, underscoring the strength of our portfolio. This performance was primarily driven by BIMZELX, with net sales more than tripled to EUR 2.2 billion, reflecting strong volume growth across all indications with particularly robust momentum in HS. In the U.S., this was supported by a favorable payer mix with a high conversion to paid prescriptions and a meaningful proportion of unrebated scripts. And that momentum continued into the second half where we also saw a positive gross to net true-up versus H1, driven by a more favorable channel mix than what we had initially anticipated. FINTEPLA continued its solid trajectory, delivering 26% year-on-year growth and reaching EUR 427 million in net sales, reflecting continued penetration across Dravet and Lennox-Gastaut indications. Within the GMT franchise, RYSTIGGO and ZILBRYSQ together generated more than EUR 270 million of incremental net sales over the year. And this was achieved in an increasingly competitive environment and reflects our differentiated assets in this space. EVENITY also delivered strong growth with net sales up 33% in Europe to EUR 137 million. It's important to note that this figure represents only the direct European net sales. Our total economic exposure is significantly higher as reflected in the EUR 632 million net contribution from our partners in 2025, corresponding to 32% growth and which continues to be a meaningful contributor to profitability. Beyond the 5 growth drivers, CIMZIA delivered net sales of EUR 1.95 billion, down 4%, flat at constant exchange rate. And despite being off patents, volumes grew by 4%, making CIMZIA the fastest-growing branded TNF across major markets. And this volume strength was more than offset by continued pricing pressure, particularly in the U.S. driven by the new IRA Medicare Part D legislation and including the growing impact of 340B. BRIVIACT grew net sales by 11% to EUR 758 million with sustained growth across all regions. The product was approved in Japan in June 2024 and has reached loss of exclusivity in the U.S. this week and will achieve loss of exclusivity in Europe in August this year. And of course, this is reflected in our forward-looking assumptions. Briefly on ESG in '25. We strengthened our environmental performance, improving our CDP climate change rating to A, and we were ranked An Industry Leader #2 in the Global Biotech by Sustainalytics. Our financial performance is underpinned by a consistent sustainability agenda, which we see as an important contributor to long-term value creation. So let me now go to the financial performance and the profit drivers. And on the top of the page, let me start with revenue. So total revenues reached EUR 7.7 billion, up 26%, 29% at constant exchange rates. This was driven by net sales of close to EUR 7.4 billion, up 32% or 35% at constant exchange rate, reflecting strong underlying demand across our growth portfolio. Turning to profitability. Adjusted gross profit reached EUR 6.1 billion, up 27% with the gross margin improving to 79.2%, driven primarily by a more favorable product mix from our 5 growth drivers. Operating expenses totaled EUR 3.7 billion, up a limited 5%, clearly demonstrating strong operating leverage. Marketing and selling expenses increased by 20% to EUR 2.5 billion, reflecting our continued investments behind the growth drivers, including deeper market expansion, new geographies and resource reallocation from mature to newer assets. R&D expenses increased by 2% to EUR 1.8 billion, reflecting continued disciplined investment in the pipeline and early research, and as a result, R&D represented 24% of revenues. And finally, G&A expenses remained well controlled and decreased by 3%. Other operating income was a positive EUR 829 million, up EUR 265 million versus '24. The majority of this, EUR 632 million, came from the net contribution from our EVENITY partners, which grew by 32%. And in addition, we continued our portfolio simplification strategy with the sale of an asset for EUR 315 million, and this was partially offset by EUR 111 million of one-off costs related to the resolution of contractual commitments linked to a noncore asset. Altogether, this resulted in adjusted EBITDA of EUR 2.6 billion, up 79% or 87% at constant exchange rates, driven by strong top line growth, improved gross margin and significant operating leverage. EBITDA margin increased by 10 percentage points to 34%. And if we correct for the asset sale and the one-offs, adjusted EBITDA came in at EUR 2.4 billion, representing a 31.4% margin, which is in line with the guidance that we updated back in December. Moving to profit. Group profit reached EUR 1.6 billion, up from EUR 1.1 billion in '24. Net financial expenses declined to EUR 126 million, driven by lower net debt. The effective tax rate was 14%, reflecting use of R&D incentives and deferred tax asset recognition despite a negative impact of Pillar 2, and it's in line with the underlying rate in '24 when adjusted for the China divestment. Core EPS reached EUR 9.99, doubling year-on-year and closing another strong year for UCB. And finally, strong cash flow generation has allowed us to fully deleverage the balance sheet, giving us a strong and flexible platform to support future growth. So moving to the next page. Let me now turn to our 2026 financial guidance. First, we have evolved our approach to constant exchange rate guidance to improve comparability and transparency. Our guidance also reflects current rules and regulations. It does not include any impact from potential MFN or tariff. We are, of course, closely monitoring the external environment. So for revenues, we expect high single-digit to low double-digit growth at constant exchange rates. The underlying drivers remain the same 5 growth assets as in '25 with BIMZELX as the largest contributor, followed by RYSTIGGO, ZILBRYSQ, FINTEPLA and EVENITY. On BIMZELX, we expect access expansion in the U.S. to come with a lower net price, which we anticipate will support strong volume growth. The overall revenue growth rate will also reflect the loss of exclusivity for BRIVIACT in the U.S. and Europe, to a lesser extent, impact LOE in Japan as well as a modest negative perimeter effect related to last year asset disposal. So overall, strong momentum from the growth portfolio, partially offset by expected headwinds from LOE and perimeter, and that's reflected in the revenue range. Moving to EBITDA. we expect high single-digit to high-teens growth at constant exchange rate. And if we adjust the 2025 EBITDA for the product sales and the one-offs, so starting from a EUR 2.4 billion base in '25, we expect EBITDA growth at constant rate in the high-teens to high 20s, significantly outpacing revenue growth. And there are 3 main drivers. First, continued improvement in adjusted gross margin driven by the evolving portfolio mix despite the impact of net price decrease. Second, regarding OpEx, marketing and sales and R&D expenses will continue to increase. Their contribution to margin expansion will be lower than the exceptional operating leverage that we have achieved in '25, and this reflects higher volume-linked variable costs in marketing and sales and our continued deliberate investments in innovation. We will maintain discipline and clear prioritization in the uncertain external environment that we operate in. And last, EVENITY's contribution is expected to grow faster than the top line, supporting further margin expansion. While we will continue to actively manage and simplify the portfolio over the long term, we do not plan any established brand asset disposal this year. We expect the tax rate to increase to around 20%. And we have provided you, at the bottom of this page, with the sensitivity of the guidance to foreign exchange impact on both revenues and EBITDA lines. So to conclude, overall, strong growth, accelerating profitability and a very solid financial position. So with that, let me thank you, and I'll now hand over to Jean-Christophe. Jean-Christophe Tellier: Thank you, Sandrine. And thank you, Fiona; thank you, Emmanuel, for this overview of our performance 2025 and sharing with you our guidance for '26. And as Sandrine has just said, I think you would agree with us that with the strong performance that we have delivered in 2025 -- next slide, please. With the strong performance of 2025, we are confident that we will be able to continue to deliver a solid growth again for 2026 and pave the way for a successful long-term growth for UCB. And this is based mainly on 3 components. The first one is the continuous focus on innovation that have guided us for the last years and will continue. This focus on innovation give us a possibility to build a portfolio of differentiated assets that creates very differentiated value for patients who need this asset to have the life that they want to live. Two. Rigor and discipline in execution, the ability to be resilient, to be agile, to get the resource where we feel the highest return in order to deliver strong performance and efficiency. And three. By creating an environment, a culture for everyone to be at their best and be purpose-led in such a way that we deliver the maximum value on the long term for all stakeholders, including, of course, the patient and shareholders. So with this in mind, we would like to move now to the Q&A, but allow me maybe a personal message before handing over to Antje for managing the Q&A. Because today, it's quite a special day for us at UCB and maybe also for you as it will be the last full year results that Antje will have the chance to be with us, and we have the chance to be with Antje. As Antje has decided, after 27 years at UCB, to enjoy life outside of corporation, which I think it's fair for her to let her benefiting from that. Antje, you know, has been the voice and the face of UCB for all of us and all of you. Her dedication, our energy, our engagement and commitment to serve our shareholders and all of you have really been an anchor of UCB successes in the past. And for me, as CEO, since my very first day here, I always have had, with Antje, a very good and solid sparring partner who have been able to build and strengthen the reputation of the company and help me all along. So Antje, thank you very much. Antje will pass the baton to Yvonne Naughton, who will take the position as of May 1 and have just joined us. So we'll have a few months of handing over. And so, of course, we are very pleased to celebrate and welcome Yvonne, but at the same time, we are a little bit sad to let you go, Antje. So with that, I hand it over to you to reorchestrate the Q&A again for us. Thank you. Antje Witte: Okay. Thank you so much. That's indeed a very emotional moment. I'm thankful for everything. I think we live together through so many different situations. I enjoyed it fully, even though it might sound strange, but that was good and bad. And yes, it's time that I'm going private. I'm going to do all the things I haven't done yet from now into what's next, seeing the full potential. And I will definitely miss you, this company and it's -- especially its people, my colleagues are fantastic and has been my life and my family. I'm here, as you say, until end of April, so we will have an opportunity to connect in the remaining weeks and also introduce Yvonne to you, who is already with us here. And yes, for those who see us in London next week, that's for sure where you're going to meet us. Okay. Thank you. So going back to business, we will now start the Q&A session. [Operator Instructions]. The question session will be handled by our operator today, Kjell. You can also e-mail your question to me under antje.witte@ucb.com, and I will ask your question on your behalf. Kjell, operator, please explain how to ask a question. Operator: [Operator Instructions]. Our first question comes from Peter Verdult from BNP Paribas. Peter Verdult: Peter Verdult, BNP. I'm going to break with 20 years of traditional protocol because I, myself, never thank or congratulate management on public conference calls, but I will make an exception on this one and say, Antje, personally and on behalf of many people on the line, thank you for your service and professionalism. It's been great fun, and good luck with your next chapter. Now back to business, 2 questions. Firstly, just on R&D and then secondly, on capital allocation. Just on R&D, clinical trial risk in immunology and inflammation. We've seen the pharma industry generate mixed data for OX40 in AD, MoonLake missed in HS, we've seen mixed data in COPD for IL-33. And some industry CEOs are claiming it's now harder to do clinical trials in I&I, citing difficulty recruiting biologically naive patients, moderate to severe patients and dealing with a higher placebo response rate. So maybe anyone or Emmanuel, does UCB agree with this premise? And can you remind us what UCB does to ensure clinical trial success and how much of that clinical trial is done in-house versus CROs? So sorry, a bit of a big picture question, but I think it's important when you think about galvo and the promise of that asset. And then more quickly, JC or Sandrine, your net cash found there's no interest in buybacks, and I assume your dividend policy is unlikely to change materially. So is the message on be still about platforms and modalities and early stage pipeline efforts? Or are you now signaling that you're broadening your scope in terms of considering inorganic growth opportunities that might add revenues nearer term? Emmanuel Caeymaex: Yes, Peter, thank you very much for your question. And we see this, although there is variability across diseases. So in certain cases, the endpoints, the duration to achieve the endpoints and the availability of patients that are moderate or severe is not as much of an issue. But clearly, the trend has been more noise. And so the way we deal with this is, first of all, we're more prudent and careful around the design of the study. We're very careful around endpoint and time selection. We're deploying more people, site managers to ensure that execution is tighter and that the education of the various sites around the world provides a level of homogeneity. We also tend to allow for size -- not to be too conservative on the sizing of the samples, just recognizing that there could be more noise. And finally, in terms of CROs, we've gradually taken in more roles. But at the same time, we do acknowledge that in new areas, often CROs have a lot of experience that we can learn from. And so we are very open in collaborating with those teams to make sure that we do not repeat mistakes or that we learn from prior experience. Thank you. Jean-Christophe Tellier: Thank you, Peter, for your second question. So you're right. I mean, our strength in our balance sheet and the fact that we have now reduced and have no debt creates a lot of space in a sense for being able to consider investment in inorganic growth for the future. As you know, because we have our loss of exclusivity will not be before 2033 for the first one and until 2037, there is also -- we have also the time to think about it. I used to say, and I think I've said that with you last year, that it was years of execution of launches, and we didn't want to create a potential risk to disrupt the organization by making integrations or acquisitions that will require local resources. Of course, after now several years of execution of the launches, we start to be in a phase where we can have some time to dedicate to potentially addition to our pipeline. But the focus will be most likely on early clinical or clinical area -- assets and area where we have capabilities. And these questions of integration and complexity of integration will be, of course, also very much scrutinized. So yes, we always have been looking. We are now a little bit more intentional on that with the objective to strengthen our capabilities, thinking about the long-term growth and be careful about not disrupting the execution of the launches. Operator: Our next question comes from Stacy Ku from Cowen. Stacy Ku: At the risk of becoming emotional, many thanks to Antje for her key support in our coverage of UCB. Very excited for you, and we'll miss you. So first, back to the Q&A. When we think about the revenue guidance range, the low end does suggest BIMZELX is in line with consensus and the high end of the range seemingly driven by BIMZELX outperformance. So I would love to hear your views. And specifically, how we should think about the bio-naive HS patient segment as it relates to access and reimbursement? Curious to get your thoughts on whether it will be different this year, as we think about upside? Second question is whether or not you all would be willing to provide additional details around donzakimig prioritization? Does it relate to the emerging atopic dermatitis competitive landscape, your ability to think about donzakimig as a broader I&I platform? Just any additional details would be very much appreciated. Jean-Christophe Tellier: Stacy, thank you. I'm happy to start with the donzakimig question. So indeed, as you mentioned, the atopic dermatitis field is quite competitive. And when we look at this from a portfolio point of view, we saw a big opportunity to double down on galvokimig based on the data we have in hand. In terms of the biology of donzakimig, the combination of IL-13 and IL-22 inhibition probably is having a more narrow potential in terms of disease areas where this can make a big difference based on today's understanding of biology across autoimmune disorders. So indeed, those 2 things come to play. Now eventually, we'll release the data, and it's an asset which we believe can have value. However, from a portfolio point of view, it wasn't prioritized at this point. Sandrine Dufour: Right. And Stacy, your question on HS comparing the bio naive and the access and the reimbursement. I think it's fair to remind that in 2025, we clearly benefited from a strong access from HS patients even in areas where there was no access coverage of formulary where there was a clear efforts from both physicians and patients to get access to the drug, and that, of course, translated into a full price. We do not expect this to repeat in '26 clearly because we have expanded access and formulary. And so what we expect to see that there will be a coverage, which will be a mix of what we have, i.e., double-step edit, single-step edit and first line, and that expanded access will certainly trigger a stronger volume growth. Stacy Ku: A quick follow-up then, Sandrine or Fiona. For HS, is the vast majority -- and this is obviously for the U.S., is the vast majority of coverage remaining at single-step edit access? Fiona du Monceau: Yes. So 2 out of 3 of the PBMs is at single-step edits. I would add also that, as you know, I mean, this is a market that's expanding along sort of 3 axes. One, for the moment, the diagnosis is extremely long. It's above 7.3 years. And so we're working on accelerating that so that patients get treatments quicker to biologics in general. Second, if you look at sort of the knowledge of the HCPs and then the number of HCPs willing to treat HS is expanding. And then there's a whole component around sort of patient activation. And this is a disease that comes with a lot of stigma; a lot of shame, unfortunately; and helping those patients come out and ask for better treatment. Currently, if you look at sort of the split bio-naive versus not, we're at roughly sort of 40-60. Operator: Our next question is from Naresh Chouhan from Intron Health. Naresh Chouhan: Both on BIMZELX, please. Just on the rheum indications. Now, the BE BOLD readouts we've seen come forward six months-or-so, have you assumed any acceleration in the rheum indications in H2 in your guidance? Obviously, your MSLs will be able to talk to the data, even if your reps can't. So just trying to get a feel for any potential upside, either included or not getting included in guidance? And secondly, just a bit more details on HS. Something, Fiona, you didn't mention was stay time, and duration or persistence for patients on NHS. Obviously, for Humira and Cosentyx, we see very short stay time. Just trying to get a feel for what you're seeing in the real world? I know you've got 3-year data out there, but in the real world, what are you seeing in terms of stay time on BIMZELX? And in your $5 billion market size estimate, are you assuming increases in stay time? Fiona du Monceau: Thank you for the question. So on the rheumatology indications, so we are expecting to accelerate in our rheumatology indication. We have a strong belief that the IL-17A and F plays a difference for these indications, particularly in the joints. And as I -- sort of I was mentioning earlier, the earlier you treat sort of with a strong medication, the more you prevent lasting damage, but once it has taken place, it's difficult to reverse. I would also say that you have a non-negligible portion of your psoriasis patients who do go on to develop psoriatic arthritis. And so we also expect sort of to have a spillover effect there. On your second question around sort of HS. Yes, we look forward to taking advantage of the duration of some of the other therapies that we see on our sides. We do see a longer persistence in for HS, and there is a slight difference between bio-naive and previous -- and switch. But all in all, we're -- we have a good persistence there. And then your last question around sort of the $5 billion, I think it's -- I mean, as I mentioned, it's a combination of seeing sort of this disease being more and more recognized both by HCPs, but also, by your generalists who are gonna refer much quicker to dermatology. It's about sort of patients being more active and feeling less stigmatized and sort of pushed to the side, and an acceleration on your diagnosis times. Thank you. Operator: Our next question comes from Richard Vosser from JPMorgan. Richard Vosser: One question please, on BIMZELX as well. I think, Sandrine, you mentioned a gross-to-net adjustment in the second half. I wondered if you could quantify that and maybe just give us a little bit more detail in the gross-to-net development from the second half of 2025 and into the first half of 2026, just to give us some color there as you increase the coverage? And then second question, just on bepranemab. Very good news getting a fast-track designation, but this is still a pretty high-risk area relative to others in development, so just wondering about the thoughts around partnership here to share the risk of further development around that product. Sandrine Dufour: Yes, so on the impact, indeed, so I said that in the second half of '25, we had a crew up of gross-to-net from H1 to H2, and it represents around 5% of our total BIMZELX, just to give you a sense. And then, you know, on the evolution from '25 to '26, we still benefited in the second half of '25 from this large proportion of unrebated scripts, and logically, as we are expanding the access, that will come with full price moving to net price, which are very in line with the ranking of the access coverage, so depending on the indications and depending on the payers, as you know, we have a mix of double-step edit, single-step edit, and first line, and so that's how it should evolve from '25 to '26. Jean-Christophe Tellier: And Peter, thank you for your question on bepranemab. So indeed, we share your view in terms of the risk that comes with Alzheimer's disease programs. So at this point, we're open to various ways to mitigate that risk. So far, we've been really focused on unlocking and addressing critical path questions of CMC and regulatory nature, and now that this has progressed well, we are looking at this de-risking, which is both an asset and a portfolio consideration. Operator: Our next question is from Xian Deng from UBS. Xian Deng: First of all, thank you for all the interactions and all your help, Antje, and wish you all the best. To my question, so just wondering in terms of HS, so just wondering -- thank you very much for the color in terms of the 40-60 split between bio-naive and refractory patients. But just wondering going forward, where do you expect as a main source of growth? So do you still have big bolus of patients that hasn't had either bime or Cosentyx, or is it more from switch from Cosentyx or even just naive patients, you're kind of -- all patients who are not seeking active treatment at the moment? Kind of linking to that so just wondering, when you mentioned the mid-teens CAGR for the HS market, linking to this question as well, so just wondering, do you expect this to be relatively linear or more back-end loaded, as you probably have to educate the physicians and everything? So that's kind of a, sorry, long first question. Second one, on galvokimig. So on ct.gov, it still says the primary endpoint is 16 weeks, but now you're saying you're doing blinded dosing to 52 weeks with top-line data in 2028. So just wondering would you be able to -- is ct.gov simply not updated or would you be able to potentially have a look in the middle and start Phase III before 2028? Fiona du Monceau: Thank you for the question on BIMZELX. I would say, I mean, it's a combination, and it's gonna happen, of course, over time. So first, it's about gaining market share in the IL-17 and moving that whole class sort of earlier moving from moderate to severe to moderate and as closely as possible in the pathway. Two is accelerating that diagnostic, so moving it from sort of 7.3 down to significantly lower. Three, expanding the number of physicians who are ready to treat HS, and then in parallel, of course, activating patients. So that's going to happen over the next sort of five years in a staggered way. Emmanuel, I'll hand over for galvokimig. Emmanuel Caeymaex: Yes. Thank you. And thanks for your question indeed. So the study is blinded for the entire 52 weeks, we would want to ensure that not to jeopardize the study integrity. It's a study where it's both a learned study and a dose-ranging study, right? We certainly want to make sure we get the full value of this investment. It's designed to inform us to take the best possible step in an area which is quite competitive, but also quite complex from a heterogeneity point of view. So with this, we're not going to move earlier, as per your question. Operator: Our next question is from Rajan Sharma from Goldman Sachs. Rajan Sharma: I've got a couple. Sorry, another one just on BIMZELX then and price. I'd just be interested to understand when you expect to reach a steady state on net price in the U.S.? Is 2026 sort of a step-change in the trajectory? And then within 2026 specifically, do you expect price to compress through the course of the year? I'm just wondering if any of that positive effect that was -- that you mentioned in the second half of '25 holds true into the beginning of 2026. And then second question was actually just on pipeline. So I noticed that you had the ocular myasthenia gravis phase III. As it happens, one of your competitors shared their phase III data this morning. They showed a 2-point improvement on the primary endpoint. Do you expect to show a similar level of efficacy, or is there room for improvement, and do you expect to use the same endpoint? Fiona du Monceau: So maybe first to answer your question on BIMZELX and the net price. As Sandrine was mentioning, I mean, versus last year, we'll have much less unrebated scripts or full price, as we've sort of negotiated more and more the access across our different indications. There is still more potentially to come, where we evaluate, of course, every decision sort of meticulously from a finance perspective on increasing access versus -- and increasing volume versus rebates. What we can tell you for the moment is, we've just increased by EUR 36 million, and we'll continue to evaluate that as opportunities and negotiations progress. Emmanuel Caeymaex: Thank you for your question on ocular MG. So I'll get back to you -- or our team will get back to you as to the endpoint. I'm aware of the news this morning, but I haven't gone into the details yet. What I can say is that from a generalized myasthenia gravis experience point of view, two things have become clear over the last years. Firstly, that anti-FcRNs really are used early, and therefore, going into ocular MG, where most of the patients start with eye symptoms, makes a lot of sense for the medium and long term. And second, we know from clinical practice that not only does RYSTIGGO provides a pretty robust efficacy that stays over time, but we also see that the cycle times are not too variable, relative. We believe that there's something with this medicine that will translate to ocular MG, and again, we'll get back to you as to what we can share in terms of the details of the study. Operator: Our next question comes from Charles Pitman-King from Barclays. Charles Pitman: I'd just like to also pass my thanks to Antje for all her help over the time covering the company. I think two questions on BIMZELX from me as well to maintain the theme. Firstly, just within the psoriasis indication, one of the things we've seen in some of our prescription data is that it appears BIMZELX has started to lose share versus other novel biologic peers over 4Q 2025, particularly against some of the IL-23s, so I was wondering if you could just provide a bit more commentary on if whether or not that's a trend you're seeing and what really explains it, and what your -- specifically, therefore, what your strategy is for trying to regain that share going forward to support your broad expansion of the BIMZELX sales? And then secondly, just in terms of competition, I mean, one of the other things we've seen very recently is that MoonLake has announced that they have been -- they've received a positive confirmation from the regulator that they can file using one of their Phase III and their Phase II data, with the potential that any of their label -- any label would therefore include numerically superior efficacy results, so I'm just wondering how you're feeling about the competitive dynamics from sonelokimab across HS and psoriatic arthritis, given their Phase II positive data? Fiona du Monceau: Yes, let me answer your question. So maybe there -- I mean, on the first one, so you'll see that we, over the last two weeks, we've had, 2 consecutive weeks with over 7.2. I think it's important to realize that January and a bit February has been sort of a -- there's been a lot of noise in the system for all products because of snow days, four days a week, and the general noise that you have in January as the new year kicks off. I think we -- you'll see that we've continued to grow from an IL-17 -- within the IL-17 class. And we look forward to having BE BOLD that reboots and gives us even more energy to continue to compete in the psoriasis area. If I take MoonLake, I would say, well, first, we are the only one on the market with significant data over all our head-to-heads and over the duration, if you include not only launch, but also all the clinical data that we've accumulated. They have shown some efficacy. It's been mixed results, and that information and that data will need to be included should they be able to get an approval. So I think you can't go in thinking that you can cherry-pick data. The FDA will expect to have the full package. And let's see how they do that and what happens there. But yes, want to reinforce that by the time they come on the market, we will have been there, we will have proven how effective our drug is, and our data is consistent not only within our indications but across each of the indications. Operator: Our next question comes from Sarita Kapila from Morgan Stanley. Sarita Kapila: Just on BIMZELX and coming back to HS, apologies. Could you comment on the market share evolution versus Cosentyx? Has this now stabilized? And how should we think about the broader HS market in terms of growth expectations this year? And are you to be confident that you can continue to meaningfully outgrow the market this year based on current scripts? And then the second one is on the change at the FDA with a single pivotal trial sufficing for approval. How might this influence dapirolizumab for SLE? Is there a chance for an earlier approval based on the current one positive trial? Fiona du Monceau: So let me start with BIMZELX, and Emmanuel, let me know if you take dapi or not? So first on BIMZELX, HS, I think you've seen the graph that I showed earlier, where we see sort of good progression with currently around 32% market share within the IL-17. Previously, back in July, Emmanuel shared data with you that was around the 25%. We have the better drug. The F component in the IL-17 really does make a huge difference to these patients, so it's our mission, both for the teams out in the field as well as us in the head office, to make sure that these patients are treated adequately with the best treatment option. I was speaking a few weeks ago with a patient who was in a clinical trial, who was on the placebo part, and he shared with me sort of the scars just from that simple 6 months period, and those are scars that never go away. So I think it's not only important, but it's our duty to make sure that we continue to progress this year in the IL-17 and lead the pack there. And I think from a sort of market growth perspective, as we mentioned, it's gonna continue to grow in the mid-teens. Between the effort of us and other players in the field, we are seeing that market continue to progress. Emmanuel, do you wanna cover dapi? Emmanuel Caeymaex: Yes, for sure. Thank you for your question. Indeed, we did approach the FDA with that question. However, it won't apply to dapimab yet. I think there's some intricacies around the secondary endpoints in the first phase III study as well as the phase II study, which makes that package not quite reach the level that would be acceptable today for going with a single Phase III study. Obviously, if we see more opportunities to cut the time, we'll seize them. For now, we're busy recruiting rapidly in the second Phase III study. Operator: Our next question comes from Charlie Haywood from Bank of America. Charlie Haywood: Charlie here with Bank of America. I have 2, please. First one, I'll keep it simple. BIMZELX '26 consensus is around EUR 3.1 billion, which I think if you annualize your second half sales, gets you to within 10% of that number, so How comfortable are you with consensus? And secondly, I think by my maths, your second half U.S.-based sales are around EUR 400 million. Given in second half, you had 2/3 of the big PBMs covered, which is likely the majority of volumes. Can you just help quantify of that EUR 400 million number, the absolute pricing benefit, sort of uplift you could have seen in second half that could reverse, as those patients become rebated? Sandrine Dufour: Yes, I can take this. I don't think we comment on consensus per asset. We typically don't do that. But overall, I think we provided the guidance. We -- '26 for BIMZELX is going to be a combination of strong volume growth and evolution of the net price. I wanted to call out the fact that in the second half of 2025, we had a bit of this true-up that you need to factor in when you look at how H1 and H2 dynamic comes in '26. And at this point, this is how we want to support and help you on the projection. Operator: Our next question comes from Luisa Hector from Berenberg. Luisa Hector: Of course, thank you to Antje. I just have a couple of questions. Could you comment on the U.S. formulary position in immunology in terms of any trend you are seeing towards basically parity access for all drugs and this leading to a bit of a shift to competition more in the doctor's office? Just wondered -- we heard it from a competitor. Just wondered if you're also sensing that trend. And then interested in your comment that CIMZIA are still seeing volume growth, and I just wondered is that across all markets? And are you, on the whole, expecting that TNF volumes will be stable to slightly growing in the future? Just thinking of that as a sort of a pool of patients switching to newer therapies, but overall, should we anticipate TNF stable to growing over the coming years? Fiona du Monceau: Thank you for your question on the U.S. formularies. No, so I wouldn't say that we've currently sort of seen everyone going to parity. I mean we still have sort of the double-step, single-step or first line or excluded in sort of the packages that -- yes, and how the formularies are set up for the moment in the U.S. On your question on CIMZIA, so we continue to see increase in growth for CIMZIA. I would say it's standing out from the TNF lot in general. So there's very different dynamics for the rest of the TNFs. And I do think it's really because of the uniqueness of CIMZIA and how it's PEgylated formulation and the impact it has on particular patient populations. Thank you. Operator: Our final question is from [ Rudy Lee ]. Unknown Analyst: Congrats on a strong year. Also want to add my congrats to Antje for your new journey. I have two questions. First is regarding BIMZELX. For psoriasis and for the rheumatology indication, how should we think about the penetration or market share in the total biologic market beyond just IL-17? And how should we think about the gross-to-net in the longer term? Second question is for FINTEPLA. I'm just curious about your current thoughts on the gene therapy competitor programs, including the ASO and AAV gene therapy for Duchenne syndrome. Apparently, at the same time, you know, there are a couple [indiscernible] drug, in late-stage trials. How would these new products potentially, I mean, change the market dynamics in the coming years? Fiona du Monceau: So maybe let me start with the gross-to-net. I mean, I think Sandrine has sort of mentioned it as well. So one -- I mean, we will see a difference between last year where we had quite a few scripts, medical exception at full price. Now you will see a net price or gross-to-net more in line with where our access coverage is, whether it's first-line, single-step or double-step edit as well taking into account, of course, that the dosages across the different indications and loading doses are different. Your question around FINTEPLA -- sorry, I'm just going back to my notes linked to the question that you asked. So your question around FINTEPLA and potentially future competition. Well, first, in general, usually competition increases the market and is a good thing for both patients and for us. I would say what we are seeing with FINTEPLA is really a strong impact. From an efficacy perspective, we've just, as Emmanuel mentioned, shared the outcome of the Phase III data for CDD, which reinforces not only the impact that we have on seizure, but also on the non-seizure outcomes and we hope to sort of further increase our data package and improving the efficacy and the benefits of that drug with our Rett syndrome indications. So I think that by the time that they come on the market, the wealth of data and the proven real-world evidence will support FINTEPLA as a strong option. Thank you. Antje Witte: So that was the final question for today. Thank you so much. Thanks to Jean-Christophe, Fiona, Sandrine and Emmanuel, of course, of my screen here. Thanks to the audience, you have been very patient with us. We went definitely well above the hour. And yes, thank you all for everything. I enjoyed every moment, and I wish you all the best. For every question that is open for any future interactions, you know where to find us. We are here, and we are going there to continue to serve you as good as we can. Thank you.